6. The Influence of Social Media Flashcards
Which social media platform is the most popular? How many monthly users does it have?
Facebook - 2 billion monthly users
Which social media platform is the second most popular?
Youtube
How many monthly users does instagram get?
1 billion
How many hours of video are watched per day on Youtube? How much of this is watched on mobile devices?
1 billion hours per day, 70% on mobile devices
What is WeChat?
Originally a messaging app but is now used for paying bills, ordering goods & transferring funds to others.
Widely used in Asia, especially China & Bhutan
Why do banks analyse data?
To form long term strategies and plans
What advantages do digital banks have over traditional ones? (2)
- They are DIGITAL NATIVES - their systems are already built to collect the data they need
- Funded by VENTURE CAPITAL/PRIVATE EQUITY - don’t have to answer to shareholders every quarter, so can take a longer term view on profitability.
What are the two main advantages to social media marketing as opposed to other forms?
- Reaches larger audiences
- Generates a lot of real time data
Why do new challenger / digital banks need to use social media?
They don’t have the street presence that incumbent banks do, they use social media for exposure
Why do incumbent banks need to use social media?
For new digital offerings
How has the growth of social media changed people’s expectations of products?
Social media provides a smooth online experience with instant interaction. It is low cost and frictionless.
People expect banking to now be the same
Why is marketing to Millenials and Gen Z important?
Because they account for 30% of spending power
What sorts of advertising are Gen Z and Millenials most influenced by?
They are not influenced by traditional advertising
70% say they are influenced by their family and friends’ choices
84% say online user-generated content (influencers) affect their decisions - banks should utilise this
How long does the average person spend on their phone per day in the UK?
3 hours and 15 minutes
How can you reach people who don’t use social media online?
Using online surveys - but this shouldn’t be relied upon too much because it’s a backwards-thinking approach. Forward-thinking is much better.
Which social media channel can be described as a ‘micro-blog’ using 280 characters with images and videos?
What is the ideal length of a Tweet? Why?
71-100 characters.
Shorter in length means quicker/more instant impact
What sort of banking communication might twitter be suited to? What is the main limitation to using twitter for banking communication?
Good for banks to communicate short, non-complex messages, e.g. to alert customers to when a system is down or a new funding round. Quick and easy to find out what is going on through short messages.
Restricted when trying to comply with FCA communication rules in that communication must be “clear, fair and not misleading” - this is difficult with such a short amount of characters.
What can be added to a tweet to increase engagement?
GIFS - tweets with GIFs have 55% more engagement
How many UK users does Twitter have?
13.7 million
True or false: Facebook Messenger supports sending money?
True
How is revenue made on Facebook?
Targeted ads
What was the Cambridge Analytica security breach?
Misuse of data which was used to influence the 2016 presidential election.
Forced to pay a $5 billion fine.
What are the pros of using facebook as a marketing tool? (3)
- Better suited to LONGER FORM CONTENT
- Higher DWELL TIME (time spent on the same page after clicking, due to people scrolling through things that interest them. This is highly sought after by advertisers)
- The most WIDELY USED social media platform
How many UK users does Facebook have? What percentage of these use it daily?
44.84 million
44% use daily
Which age group is the largest among Facebook users?
25-34 year olds
True or False: Facebook is popular with the 65+ age group
True
Which social media platform is able to best position brands in front of millions of existing potential customers via influencers?
True of false: you can currently send money via Instragram.
False. Not at the moment, but it’s likely you will be able to using Facebook currency in future
What is LIBRA?
Blockchain currency intended to be introduced by Facebook in 2020; however, these plans are currently on hold due to regulatory pressure.
Which social media platform is home to posts with minimal text and favours short stories via visuals?
How many UK users does Instagram have?
26.54 Million
With which age group is instagram most popular?
25-34 year olds
30.5% in this group
How many users does LinkedIn have? Across how many different countries?
660 million across 200 countries
What are the pros of using LinkedIn as a platform? (3)
- DETAILED DEMOGRAPHIC DATA (able to see how people network within their industries)
- Both SHORT & LONG FORM content
- Useful for LEAD GENERATION & PROMOTING BUSINESSES TO CUSTOMERS
What sorts of industries suit using Pinterest as a platform?
Visual industries
Which platform could be described as a social bookmarking site which uses pictorial sharing for the discovery of products and services?
How many global monthly users does Pinterest have?
367 million
What demographic characteristics tend do people who used Pinterest predominantly tend to have? (2)
Females
High household income
What is Pinterest 100?
Promotes aspirational shopping trends
How is social media being used with regards to foreign currency?
Matches up buyers and sellers, cutting out the middleman and any exchange fees (P2P lending via social media)
What is Alipay?
Social media platforms upon which payments can be made in China
Run by Wechat and Alibaba
What is P2P or Peer to Peer Lending?
Platforms which match borrowers and lenders whilst cutting out the need for banks as a middle man. They tend to use social media as a marketing tool and have seen exponential growth.
How can financial service providers use social media to remain competitive? (3)
- CUSTOMER SERVICE
- real-time responses, not just during branch hours - MARKETING
- data-driven, real time approach. Can keep up with ever changing social environments - NEW PRODUCT & SERVICE DEVELOPMENTS
How has American Express used social media to it’s advantage? (2)
- Linking customer cards to their Facebook or Four Square profiles
- Sending users deals based on their FB likes and locations
How did Barclaycard use social media when designing it’s Ring Mastercard?
Used social media crowdsourcing
How did Monzo come up with it’s brand name?
Using a competition on social media. Original name was Mondo
What are the things that banks must ensure they get right when using social media? (5)
- CHOOSE CORRECT PLATFORM
- based on audience and their preferred content type - GET THE RIGHT MESSAGE ACROSS
- e.g. should images or complexed statistics be used based on platform/audience - CHOOSE CORRECT TONE
- must be professional - CHOOSE CORRECT TERMINOLOGY / ETTIQUETTE
- can be tricky, will depend on platform
- text speak can help with word limits but some may see as inappropriate
- humour can work well but sometimes backfires - DEALING WITH COMPLAINTS
- can be trickier as people are able to vent frustrations in real time
- public, can affect new customers
- should use Social Media to quickly apologise in response to things like system outages.
