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  • 1.EXCERPT from the Intelligence Report: InstagramTo access the full report, contact membership@L2ThinkTank.comInstagram February 10, 2014In Partnership with: L2 2014 L2ThinkTank.com

2. Intelligence Report:InstagramEXCERPT from the Intelligence Report: InstagramFebruary 10, 2014To access the full report, contact membership@L2ThinkTank.comWatch the VideoTHE WORLDS MOST POWERFUL SOCIAL PLATFORM? Size vs EngagementExplosive growth, aspirational demographics, and unmatched engagement have secured Instagrams place among the social media elite. Instagram amassed 150 million monthly users in three yearstwo yearsThe Other Girl Instagram is often compared to the other visual darling Pinterest, launched six months before Instagram (October 2010). Today, Pinterest is a third of Instagrams size and 23 percent of Pinterest users engage with the platform daily, versus 58 percent on Instagram.4 Other upstart visual and mobile platforms, including Vine, have entered the fray. However, within a week of launching video, Instagram passed Vine in shares on Twitter 5 and boasts 2.5 times the shares.6 The reach and appeal of the 15-second video format, ideal for ads, gives Instagram an edge (Vine limits videos to six seconds) with advertisers. The biggest threat may be newcomer Snapchat. However, while seven times more photos are uploaded daily to Snapchat, Instagrams superior demographicsslightly older, higher income usershas greater appeal to marketers. Recently Instagram took direct aim at Snapchat with the December 2013 launch of direct messaging, enabling brands to engage in two-way conversations with consumers. 1. L2 Intelligence: Social Platforms, August 2013. 2. Instagram, September 2013. 3.Tops of 2013: Digital, Nielsen, January 2014. 4.Social Media Update 2013, Maeve Duggan and Aaron Smith, Pew Internet, December 30, 2013. 5.A Week After Instagrams Video Launch, Vine Sharing Tanks On Twitter, Matt McGee, Marketing Land, June 27, 2013. 6. Topsy, January 2014. L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws.122,031 1.53% 150 million1.5%Community Size Interaction Rate Monthly Active Users = Size1.2% Engagement Ratefaster than Facebook and half the time of Twitter. Although an eighth of parent company Facebooks community, Instagram registers 15 times the engagement and double the engaged user base (Total Community Size x Engagement Rate) of the mother ship. 93 percent of prestige brands now maintain a presence on the photo-sharing platform, up from 63 percent in July 2013.1 As teens migrate away from Facebook, Instagram has maintained its street cred and is the fastest growing global social platform. The visual platform acquired 60 million new monthly active users in 2013,2 the highest year-over-year growth (66 percent) among top 10 mobile apps.3Prestige Brands January 2014, n=2490.9% 0.6%60,976 0.04% 218 million0.3% 0.0%1,256,088 0.10% 1,190 million 255,587 0.09% 300 million0500,0001,000,0001,500,000Community SizeEngaged Users Users x Platform Engagement Rate (MM) December 20132.3 1.2 0.3 0.1 InstagramFacebookGoogle+Twitter2 3. Intelligence Report:InstagramEXCERPT from the Intelligence Report: InstagramFebruary 10, 2014To access the full report, contact membership@L2ThinkTank.comGlobal Social Platform Active Usage Percentage Change Q2Q4 2013Best/Worst Although both had billion dollar price tags, Instagram is arguably the best media acquisition of the last five years and Tumblr the worst. Prestige brands have abandoned Tumblr, and the adoption rate has declined. Instagrams 2014 revenues are forecast at $250 million$400 million,7 while mention of Tumblr was noticeably absent from parent company Yahoo!s recent earnings announcement.23%Instagram Linkedin9%Tencent Weibo9%Sina Weibo6%Pinterest6%Tumblr6%Google+6%Picture > Thousand Clicks Visual media do more than communicate information, they inspire emotion and action. Serving a potent cocktail of visual and mobile, Instagram could be the first platform that delivers on the promise of social commerce via the power of usergenerated content. Featuring user-generated photos at the point of purchase boosts conversion up to 7 percent.8 However, most prestige brands are failing to translate Instagrams engagement to e-commerce, as just 14 percent utilize Instagram UGC on their brand sites.-3%YouTube-3%Facebook-3%VK Myspace-12%L2 Intelligence: Instagram In August 2013, L2 surveyed prestige brands across 15 global social media platforms. We turn our focus to Instagram, evaluating performance and programming of 249 prestige brands on the platform. Our aim is to provide data, best practices, and case studies to help managers achieve greater ROI on digital efforts. Like the medium we are assessing, our approach is dynamic. Please reach out with comments regarding our methodology and findings.2%TwitterSource: GlobalWebIndex Q4 2013, Global InternetTop 10 Mobile Apps 2013 1Facebook103,420,00027%Google Search75,984,00037%Google Play73,677,00028%4YouTube71,962,00027%5Google Maps68,580,00014%Gmail64,408,00029%7Instagram31,992,00066%8Maps (Apple)31,891,00064%9 L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws.YoY % Change67. Analyst Estimate, Evercore, October 2013. 8. Olapic, January 2014.Average Unique Users3PAU SABRIA Co-Founder, Olapic pau@olapic.comApp2SCOTT GALLOWAY Professor of Marketing, NYU Stern; Founder, L2 scott@stern.nyu.eduRankStocks30,781,00032%10Twitter30,760,00036%Source: Neilson, January 20143 4. EXCERPT from the Intelligence Report: InstagramIntelligence Report:February 10, 2014To access the full report, contact membership@L2ThinkTank.comInstagramInstagram: User Growth December 2010December 2013160Direct Messaging 150 million Advertising140 130 million Video SharingNumber of users (millions)120100 million100100 million Online Proles90 million 80 million80Instagram switches to releasing Monthly Active Users rather than local number of users60 50 million Facebook Acquires Instagram40 million40Android App 2015 million 10 million 1 million0 Dec 20105 million Jun 2011SepDecApr May L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws.Jul 2012SepJan FebJun 2013SepNov Dec 20144 5. EXCERPT from the Intelligence Report: InstagramIntelligence Report:February 10, 2014To access the full report, contact membership@L2ThinkTank.comInstagramBrand List in Alphabetical Order by Sector BEAUTYAlmay Aveda Aveeno Avon Bare Escentuals Benefit Cosmetics Bobbi Brown Burts Bees Carols Daughter Cetaphil Clarins Clinique CoverGirl Dove Elizabeth Arden EM Cosmetics Essie Este Lauder Fresh Garnier Giorgio Armani Beauty Iman Cosmetics Kiehls LOCCITANE en Provence LOral Paris La Mer La Prairie La Roche-Posay Lancme Laura Mercier MAC Cosmetics Make Up For Ever Mary Kay Maybelline New York NARS Cosmetics Neutrogena Nivea Olay OPI Origins Perricone MDPhilosophy Proactiv Revlon Rimmel London Sally Hansen Shiseido SK-II Skinceuticals Smashbox Cosmetics Trish McEvoy Urban Decay Vichy Yves Saint Laurent BeautyMarc Jacobs Max Mara Michael Kors Oscar de la Renta Prada Ralph Lauren Saint Laurent Salvatore Ferragamo Tods Tommy Hilfiger Tory Burch ValentinoRETAIL FASHIONAlexander McQueen Alfred Dunhill Armani Balenciaga Bally Bottega Veneta Burberry Calvin Klein Chanel Chlo Christian Louboutin Coach Cole Haan Diane Von Furstenberg Dior Dolce & Gabbana Donna Karan Ermenegildo Zegna Fendi Gucci Herms Hugo Boss Jimmy Choo Kate Spade Louis Vuitton7 For All Mankind A|X Armani Exchange Abercrombie & Fitch Aropostale Aldo American Apparel American Eagle Outfitters Ann Taylor Anthropologie ASOS Banana Republic Barneys New York Bath & Body Works BCBG Bergdorf Goodman Bloomingdales Blue Nile Bluefly Bon-Ton Boots Brooks Brothers Brown Thomas CB2 Century 21 Chicos Club MonacoCrate & Barrel Daslu de Bijenkorf Destination Maternity Diesel Dillards El Cort Ingles El Palacio de Hierro Esprit Ethan Allen Express Fenwick Free People French Connection Galeries Lafayette Galleria Department Store Gap Godiva Chocolatier Guess GUM Gymboree H&M Harrods Harvey Nichols Holt Renfrew House of Fraser Hudsons Bay IKEA Intermix J Brand J.Crew Jelmoli Joe Fresh John Lewis Juicy Couture KaDeWe Kay Jewelers La Maison Ogilvy La Rinascente Lacoste Lane Crawford L2 2014 L2ThinkTank.com. Circulation of the report violates copyright, trademark and intellectual property laws.Le Bon Marche Liberty Lord & Taylor Lucky Brand Lululemon Athletica Lush Macys Marks & Spencer Massimo Dutti Neiman Marcus Net-A-Porter Nine West Nordstrom Pier 1 Imports Pottery Barn Printemps Restoration Hardware Saks Fifth Avenue Selfridges Sephora Shopbop Steve Madden Stuart Weitzman Swatch Talbots The Body Shop Topshop TSUM Tumi Ulta Uniqlo United Colors of Benetton Urban Outfitters Victorias Secret Vince Camuto Von Maur West Elm White House | Black Market Williams-Sonoma YOOX ZalesZappos.com ZaraHOTELSConrad Fairmont Hotels Four Seasons InterContinental Jumeirah JW Marriott Le Meridien Mandarin Oriental Morgans Park Hyatt Relais & Chateaux Rosewood Shangri-La Sofitel St. Regis The Peninsula The Ritz-Carlton Waldorf-Astoria WestinMontblanc Movado Officine Panerai Omega Pandora Patek Philippe Piaget Raymond Weil Rolex Swarovski TAG Heuer Tiffany & Co. Vacheron Constantin Van Cleef & ArpelsWATCHES & JEWELRYAudemars Piguet Baccarat Baume et Mercier Bulgari Cartier Chopard David Yurman De Beers Fossil Harry Winston Hublot IWC Schaffhausen Jaeger-LeCoultre Longines5 6. EXCERPT from the Intelligence Report: InstagramIntelligence Report:February 10, 2014To access the full report, contact membership@L2ThinkTank.comInstagramInstagram By The Numbers ADOPTION 92%of prestige brands have an InstagramMonthly Active Users150 millionaccount60% of users outside of U.SIt took Instagram 1/2 the time of Twitter and 2 years less than Facebook to reach 150