Analysis of Social Media Advertising Impacts on Algerian

Consumers : Case Study on Mobile Operators

Presented by: M. Karym BentebbalBranding, Marketing and Communication Professional

Teacher at the Algerian American Management Institute

EHEC Kolea, Algiers. Mai 16, 2016 1

SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

I. GLOBAL STATISTICS ON SOCIAL MEDIA

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Social media statistics

For context, as of JAN 2016, total

worldwide population is 7.3 billion

The internet has 3.17 billion users

There are 2.3 billion active social

media users

91% of retail brands use 2 or more

social media channels

Internet users have an average

of 5.54 social media accounts

Social media users have risen by

176 million in the last year

1 million new active mobile social

users are added every day.

That’s 12 each second

There are 1.65 billion active

mobile social accounts globally

I. GLOBAL STATISTICS ON SOCIAL MEDIA

Source: we are social, 2016 Digital Yearbook

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

Facebook adds 500,000 new users

every day; 6 new profiles every

second

The average (mean) number of

friends is 338, and the median

(midpoint) number of friends is 200

Half of internet users who do not use

Facebook themselves live with

someone who does

There are an estimated 81 million

fake Facebook profiles

The most popular page is Facebook

for Every Phone, with 509,772,152

likes

There are 40 million active small

business Pages

But only 2 million of those businesses pay for advertising

Google processes 100 billion

searches a month. That’s an average

of 40,000 search queries every

second

89.3% of all internet searches are

carried out by Google

Those searches are carried out

by 1.17 billion unique users

Every day, 16 to 20% of that day’s

queries have never been asked

before

Google has answered 450

billion unique queries since 2003.

More than half of Google’s searches

come from mobile devices. By 2014,

Google hadi

ndexed 30,000,000,000,000 pages of

the internet. To carry out all these

searches, Google’s data centre

uses 0.01% of worldwide electricity

300 hours of video are uploaded to

Youtube every minute

There are 3.25 billion hours of video

watched each month

More than half of YouTube views

come from mobile devices

The average mobile viewing session

lasts more than 40 minutes

The user submitted video with the

most views is “Charlie bit my finger”,

with 834,956,899 views

On average, there are 1,000,000,000

mobile video views per day

You can navigate YouTube in a total

of 76 different languages (covering

95% of the Internet population)

I. GLOBAL STATISTICS ON SOCIAL MEDIA

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

It is clear that from these statistics, marketers are faced with new challenges, one of

them being (not to say the most important) : UNDERSTANDING CUSTOMER

BEHAVIOR, and thus engaging in new relationships.

The conventional advertising approach of mass media communications aims at reaching

a broad group of customers, hoping to stimulate the few interested ones.

Decline of mass media advertising is now a reality accepted by the industry see: CONSUMER TRUST IN TRADITIONAL ADVERTISING DECLINES IN UK, WHILE A RECOMMENDATION

FROM FRIENDS REMAINS MOST CREDIBLE NIELSEN 29-09-2015

I. GLOBAL STATISTICS ON SOCIAL MEDIA

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

With the proliferation of information received every day, more stimuli bombardments

forces individuals to be more cautious, hence filtering information and allocating

attention to what concerns us more.

Thus it is even more important for marketers to address specific customer’s concerns,

talk to customers individually or in communities.

Today, organizations need to put the customer back at the center of their business, if

they want to benefit from the opportunities provided by the social media new era. Thus,

marketers need to understand the changes that are occurring in customers

behavior.

II. SOCIAL MEDIA

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

A. Definition

Beside any definition found on the Internet, we acknowledge that:

“Social Media has created a new landscape in supporting the

socialization of information (Solis 2007)”.

In summary, we recognize three factors of Social Media:

Facilitate and enhance communication flow between always more people

Spread useful information with potentially large online audiences

Conversation on media locally but with a global impact

II. SOCIAL MEDIA

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

B. Types of Social Media

We can identify 5 different categories of social media outlets:

1) Social Networking Sites, 2) Social News, 3) Media Sharing, 4) Blogs, 5)

Microblogging.

In Algeria, Facebook totalize more than 7.8 M users in 2015. Algerians are not using Twitter

(38 000 users) very much and they prefer YouTube when it comes to Media Sharing

platforms. With the introduction of the 3G bandwidth, mobile operators have provided low-

price to free access to Facebook in an attempt to increase their data-users market share.

C. Social Media Marketing

It refers as leveraging the “social” through “media interaction” to “market” offers

II. SOCIAL MEDIA

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

C. Social Media Marketing

Defined as leveraging the “social” through “media interaction” to “market” offers.

In summary, Social Media is a Marketing tool that:

Empowers individuals and businesses to promote their business to a wide audience

Is more efficient than traditional advertising in reaching specific target audience

Transforms marketers from broadcaster of information to aggregator of consumers

and communities

The web should not be considered as an ordinary advertising channel but rather as a

place where marketers can listen and respond to consumers’ communities, promote

relevant content and optimize the formed relationships.

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

Consumer Behavior is wide in scope and breadth; such study requires the collection of a

vast amount and data to inspect. Instead, and to narrow the scope of this presentation, the

focus today will be on understanding the Consumer Decision Making Process which

associates social media and advertising.

From the trigger of an advertisement, to the active evaluation phase up to the moment of

purchase, the various steps in the process will derive meaning on how customers engage

with digital content on social media, the internet and on mobile phones.

Ultimately, marketers will identify the pitfalls and opportunities linked with the new marketing

world.

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

Marketing goal is to reach customers at the moment that most influence the purchase

decision:

e.g. : High Definition and XL TV sets in retail space to influence customers

e.g. : Amazon recommendations to customers logged-in and ready to purchase

Marketing goal is to reach customers at the moment that

most influence the purchase decision.

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

Consumer Behavior Model (Engel, Kollat and Blackwell EKB. 1978)

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

To summarize the Consumer Decision Making Process:

(1) Trigger of impulse to buy because consumer identifies a need; the trigger comes from

internal or external sources i.e. media ads, family and friends

(2) Recalls brands from own experience; accumulated brand impressions shape the initial

consideration - Thus marketing claim or promise should be strongly penetrative

(3) Filters messages received, consumer narrows down options and search for information

to validate choices; Evaluation of P&S to lead to final choice

(4) Purchases P&S, experience and influence can reinitialize the process

(5) Post Purchase Decision: “Should I keep or trash that brand?”

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

What is wrong today with this model?

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

The TRADITIONAL FUNNEL is a linear

Adapted to a One-Way-Communication Process

Marketer push marketing efforts at each step to influence behavior

Fail to capture all the touch points resulting from consumer interactions on digital

channels

Consumer are getting more clever

Not adapted to the increase in products and options

It is not looking at the Consumer Decision Journey as a whole.

The way consumers make buying decisions changes, resulting in a new approach

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

McKinsey circular journey model :

CUSTOMER DECISION JOURNEY

1. The Initial Consideration

2. The Active Consideration

3. The Closure

4. The Post Purchase Experience

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

Now Let’s take a look at the Algerian Consumer

Decision Journey

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

TRIGGER PHASE

Consumer sees an advertisement on TV, or realizes the need for a good

bargain prepaid offer and 3G. TV AD

The Consumer: “… Good, I need to make calls and

connect with my friends on social networks; now this

sounds like a good deal! Let’s investigate that

offer...And find out if a better deal is to be found with

other operators…”

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

INITIAL CONSIDERATION

The consumer has already subscribed to a post paid plan with operator X.

However he wants the best possible rate plan to make calls, surf the web

and stay connected with friends and family on Facebook, watch videos on

Youtube and send text messages and chat on messenger. He knows other

mobile operators have similar offers so he decides to find out more. (End of

stage 1: Initial Consideration).

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

INITIAL CONSIDERATION

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

INITIAL CONSIDERATION – 1st change: Consumer may add brands at a later

stage.

Brand awareness matters: brands set in the initial-consideration CAN BE UP TO THREE TIME

more likely to be in the final phase of the consumer journey.

In some industries like skin care or electronics, the study shows that automobile shoppers

added 2.2 brands in the initial-consideration set to their initial set of 3.8.

Social media plays an active role at this phase of the CDJ. The change in consumer behavior

offers an opportunity for less prominent brands to compete. Brands under consideration can no

longer take the status for granted (McKinsey Report – The consumer decision journey.)

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

ACTIVE EVALUATION – 2nd change: customer PULL information

The customer now has the option to browse social media platforms and learn about the

new offer. He can read the comments posted by other customers on Facebook and make

his mind without going to an operator retail shop. Social media is becoming influential in

Algeria, because it could be perceived as non authoritative.

After reading reviews and comments, the consumer sets for a new plan with a competitor

that offers internet access and free social media for 20% less than his current operator; he

is happy and plans to use the extra-saving to subscribe to another bonus plan for voice and

sms. (End of stage 2: Active Evaluation).

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

ACTIVE EVALUATION – 2nd change: customer PULL information

Marketers drive promotion by pushing traditional and direct marketing, sponsorships and

other channels. At each point in the CDM (traditional funnel) marketers attempt to “push”

and promote to a large audience, hoping to reach the few interested through a process that

lacks in precision and effectiveness.

Customers today are reaching out to marketers. This is the second profound change in

behavior:

They “pull information from social media platform”, learn from resources on the

internet, trust Word-of-Mouth both online and offline and recommendations from friends and

family, as well as in-store interactions and recollection of previous experiences.

Marketers need to influence consumer-driven touch points

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

ACTIVE EVALUATION Consumers are taking advantage of technology, hence

have more control to check, add or remove brands and

evaluate options.

Brand selection expands, rather than narrow as

consumers seek information. In our example, the

consumer may discover other benefits associated with

another brand and this may alter the journey towards

purchasing.

Unique opportunity for marketers to reach “The Right

Consumer”, thus SM can bridge new relations by offering

targeted and relevant content to influence consumer

choice.

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

ACTIVE EVALUATION McKinsey research found that 2/3 of the touch points

during this phase involve consumer-marketing driven

activities and word-of-mouth recommendations from F&F,

as well as in-store interactions and past experiences

recollections. Company driven marketing account for 1/3

of the active evaluation phase.

“The Algerian consumer has now the possibility to

learn about new offers, by accessing a wide range of

information available on the Internet and social

media, thus making new decisions and changing

initial brand consideration along his purchasing

journey”.

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

PURCHASE AND LOYALTY LOOPPost purchase experience shape consumer’s

opinion for subsequent decision in any category,

making the journey an ongoing cycle.

After purchasing an offer, DZ telecom

consumers are seeking for support or additional

information about their offer on the operator’s

Facebook or tweeter page.

This touch point in the CDJ was unthinkable

before; it provides an opportunity to turn

consumers into loyalists and brand promoters.

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

PURCHASE AND LOYALTY LOOPThere are two kinds of consumers: passive and

active Loyalists. It is then possible to convert

passive Loyalists to adopt another brand.

Social Media is now providing a context in which

a brand can give consumer’s reasons to switch,

not excuse to stay: optimizing the relevant touch

points is a marketer’s priority.

Telco should try to focus efforts on expanding

their active Loyalists base. Hence, budget

should be allocated to this relevant touch point.

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

Key Learnings: Telecom brands are not leveraging the full strength of social media. They are fighting the battle

for ATTENTION, allocating most of their marketing budget to the initial consideration.

They are fighting the wrong battle: consumers are looking for the best options in a saturated

market. That means they are searching, evaluating, seeking recommendations, reading and

posting comments on social media.

In a market where consumers are multi-SIMers, it is possible to provide a reason to switch by

allocating budget on new touch points.

Looking at the traditional marketing funnel’s front and back end, marketers are missing

opportunities to optimize the most important touch points of the CDJ, and to target the right

consumer at the right moment.

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

Key Learnings:“They are fighting the

battle for attention,

allocating most of their

marketing budget to the

initial consideration

phase”.

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

Key Learnings:

DZ Telecom marketers should develop a deep knowledge of how consumers make

decisions.

The marketing efforts may need to change direction, from advertising on the initial

consideration phase to developing internet and social media content that will help

consumers gain a better understanding of the brand and offer during the active

evaluation.

Consumer driven marketing implies that consumers are pulling content therefore

marketers should provide them with information, support and experience they want to

reach decisions.

Algerian Mobile Operators may need to retool their loyalty program and focus on active

loyalists

III. CONSUMER DECISION MAKING PROCESS

30EHEC Kolea, Algiers. Mai 16, 2016

SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

Key Learnings “The Algerian mobile

communication consumer decision

journey will increase in complexity,

therefore organizations need to

redistribute marketing budget

along the new pathway, identifying

customer touch points to

leverage”.

“This implies understanding and

measuring consumer behavior and

attitudes, brand performance and

marketing expenditure through the

entire process”.

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

…That’s it for today!

Thank you for your interest

III. CONSUMER DECISION MAKING PROCESS

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SOCIAL MEDIA ADVERTISING IMPACTS ON ALGERIAN CONSUMERS : CASE STUDY ON MOBILE OPERATORS

Resources:

http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-consumer-decision-journey

http://www.digitaltonto.com/2014/mass-personalization-is-coming-are-we-ready-for-it/

http://www.forbes.com/sites/gregsatell/2015/10/12/marketers-need-to-drastically-rethink-the-customer-decision-

journey/#10163aef3f28

http://www.mckinsey.com/business%20functions/marketing%20and%20sales/our%20insights/demystifying%20soc

ial%20media