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Facebook Keynote for PhoCusWright India 2016
The document discusses the evolution of travel in a mobile-first world, highlighting significant statistics about smartphone usage and media consumption trends. It emphasizes the shift towards more immersive and interactive communication, particularly through mobile applications. Additionally, it points out the untapped potential for mobile marketing in the travel industry, underlining the importance of context and connection in enhancing the user experience.
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Facebook Keynote for PhoCusWright India 2016
- 1. Travel Redefined: Connecting withPeople in a Mobile-first, Always-on World Lee McCabe, Global Head of Travel Strategy
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- 6. 1 Mobile isa Consumer Behaviour
- 7. 140M 2.5B active smartphones onthe planet1 60% of global mobile consumers use their mobile device as their primary or exclusive internet source3 40% of people use 3+ devices2 Source: Source 1: eMarketer estimate , July 2015 Source: Source 2: Google and TNS “Consumer Barometer,” Oct 2014 Source: Source 3: Internet Retailer Jan 2015
- 8. The Next MobileRevolution Source: Mobile Ate The World – Andreessen Horowitz 0 1 2 3 4 5 6 7 8 9 10 Population Population over 16 Mobile Users Smartphones PCs Growth to 2020 2015 Global Population (b)
- 10. Our Facebook community Source:1:DAU 1.04B in Dec 2015, Facebook Internal Data (December 2015); 2: Facebook Data (Feb. 2016), Benedict Evans (Jan. 2015); 3: Facebook Data (Jan.2016), Verto Analytics (May 2015), eMarketer (2015); 4: Instagram Internal data (Nov. 2015), Library of Congress 1.59 BILLION people on Facebook each month 1.04B Daily Visitors 9x the viewers for Super Bowl 501 1 BILLION people on WhatsApp each month 30B messages/day 50% more messages/day than global SMS 2 900 MILLION people on Messenger each month 400 MILLION people on Instagram each month 80M photos per day 6x the size of Library of Congresses' Prints and Photos Collection4 9.5B photos sent by Messenger every month
- 11. 2 Media consumptionis stacking, not shifting.
- 12. Mobile has createdtime Source: eMarketer, April 2015 Daily share of U.S. media consumption 2011 – 2015 0 2 4 6 8 10 12 14 2011 2015 2015 Digital 2:51 2:47 4:34 2:57 3:40 5:38 2:12 4:15 12:05 11:11 TV Radio/ Print Digital Mobile Desk/ Laptop Hours/Day
- 13. -35% -30% -25% -20% -15% -10% -5% 0% 5% 2010 2011 20122013 2014 2015 TV Time is decreasing Change in hours spent watching traditional TV per week since 2010 Age Group 50 – 64 -1% 35 – 49 -10% 25 – 34 -23% 18 – 24 -32% Source: Nielsen June 2015
- 14. 3 Mobile first= More immersive & interactive communication
- 15. Fastest to 50Musers Radio 38 years Television 3x faster13 years 10x fasterInternet 4 yrs Facebook 11x faster3.5 yrs iPod 13x faster3 yrs Surpassed Angry Birds to become the fastest growing mobile game with over 50M downloadsTemple Run 2 1066x faster13 days Draw Something 277x faster50 days Source: Localytics – The evolution of the almighty app, Aug. 2013
- 16. Average number ofapps used and time per person per month 26.5 26.8 26.7 Q4 2012 Q4 2013 Q4 2014 Source: Nielsen, Q4 2014, smartphone users accessed 26.7 apps per month on average, and spent 37 hours and 28 minutes per month on apps. ~23hrs ~30hrs ~37hrs
- 17. UC Browser YouTube Skype 360 Mobile Security SubwaySurfers Clean Master Instagram Facebook Facebook Messenger WhatsApp Top 10 Apps Downloaded (World Wide, Millions) 46% 19% 11% 7% 17% Share of Time Spent on Apps The average smartphone user spends significantly more time (46%) on their most used than on their next 4 apps App 1 App 2 App 3 Apps 5-24 Apps 4 Source: :Forrester Research, "US Consumer Technographics Behavioral Study" as cited in company blog, Jan 28, 2016 (eMarketer); Top 10 apps downloaded, AppAnnie (Jan-Dec 2015, all smartphones worldwide)
- 18. In Car InFlightIn Hotel In VR
- 19. We have reacheda new era
- 20. IDC Media Model,2015 Ad Spend Estimates $44B 2015 marketing spend $2.4B - mobile spend Untapped opportunity in Travel $8.2B - digital spend
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- 24. Mark Zuckerberg Andrea Besmehn MarkZuckerberg First time in Italy and I am absolutely mesmerized. What a beautiful day to look around and share the amazing scenery with everyone! Pallack Chandhok Check out my new virtual pet Zeus. We’re gonna go for a walk. Michael Flanders HARDER, BETTER, FASTER, STRONGER.
- 26. Share of UsageTime Spent in Top 5 Email & Messaging Apps Source: Adapting Your Strategy to User Engagement Patterns: Age & App Usage in the United States App Annie Mar 2016 0% 1% 2% 3% 4% 5% 6% 7% 8% 13-24 25-44 45+ Email Messaging
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- 31. Limited service Limitlessservice
- 32. In-room entertainment LaundryGymMini-Bar Spa BedroomBathroomWi-fi RestaurantIn-room dining ParkingReservationNetflix Saucey OpenTable HotelTonight Uber grubHub StyleSeat ClassPass Washio
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- 36. Ted, enjoys exotic vacations Julie, just gotscuba- certified Jesse, loves yachting Neil, loves hiking Troy, likes adventure travel William, avid golfer Jane, thinking of taking a cruise
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Editor's Notes
- #2 -Welcome, etc. -I want to talk with you today about how we at Facebook view travel. -This industry is thriving. And it’s changing so quickly. -The advent, adoption and implementation of digital presents you with massive potential to grow.
- #7 -First, mobile is not just a technology. [CLICK] -Mobile is a consumer behavior. -People are mobile. Fitting your business into their lives is how to build relationships with customers and make them more valuable over time. -People continue to add to the total time they spend with media as they leverage the power of mobile to remain connected to the people and things they care about throughout the day. -Our phones and tables are the remote control for our lives, so to speak. -They are very personal devices… -And they provide you with the most incredible opportunity to connect with the people who matter to you at a scale that has never been seen. [CLICK]
- #8 -In 2008, there were about 140M smart phones sold, [according to Gartner.] -Today there are over 1.75B smart phones in the world, [according to eMarketer.] -Think of that growth in such a short period of time. It’s really astonishing. -60% of people use 2 or more devices and…. -79% of people keep their phone with them for all but two hours of their waking day. TWO HOURS. -These statistics are not anomalies. There are the norm. -In fact, when it comes to Travel bookings,
- #10 People are living their lives on mobile devices. At Facebook, we have been fortunate to play a role in shaping changes in people’s relationship to technology and to each other. But I'll admit that at times even we've struggled to keep up. In many ways, this struggle has defined our business. Just a few years ago, we were a company based primarily on desktop computers. We knew mobile was coming, but not how fast. Frankly, we almost missed it. We had to make a massive shift, very quickly, and rebuild ourselves as a mobile-first company. Today mobile is at the core of everything we do. It informs every product decision we make, for both businesses and consumers.
- #11 1: http://newsroom.fb.com/company-info/ 2:https://blog.whatsapp.com/; http://ben-evans.com/benedictevans/2015/1/11/whatsapp-sails-past-sms-but-where-does-messaging-go-next 3: http://www.vertoanalytics.com/wp-content/uploads/2015/06/2015_Verto-Publication_US-Digital-Content-Market-May-2015.pdf; http://dashboard-na1.emarketer.com/app/dist/#template/timespentwithmagazines 4: http://blog.instagram.com/post/129662501137/150922-400million; http://www.loc.gov/pictures/about/
- #12 -Second, media consumption is stacking, not shifting. -And think of how this plays out in the real world. -We don’t only use our phones, people use a couple of devices simultaneously and throughout their day. -Cross-device. -Omni-channel world. In a sense, mobile has “stacked” time in people’s lives. Meaning that, with mobile, people are consuming “new” forms of media (think: multiscreening) in addition to consuming traditional media rather than wholesale “shifting” away from formats like TV. -But the truth is that the amount of time all people and age groups spend watching TV has actually decreased since 2010. [TRANSITION] -And as this shift has happened, it’s as though….
- #13 as this shift has happened, it’s as if mobile has created time. This leaves you with more opportunities to connect… Audiences are spending more time than ever before consuming media. People are “stacking” new forms of consumption onto existing, rather than shifting traditional time to new. This means you have more opportunity to reach more people on the devices where they are spending their time. From a reach and scale perspective, this opens up a world of new possibilities. As you’ll see, the majority of time audiences spend consuming media is now via digital. And the majority of that time is spent on mobile, so you can see where I’m going with this. Importantly, the use of mobile skyrocketing in the last couple of years has completely redefined people’s expectations. TV time is decreasing. The amount of time people spent per week watching traditional TV has gone down since 2010. This is true for all age groups (according to Nielsen) 2011 2015 Digital 3:40 5:38 Radio/Print/Other 2:57 2:12 TV 4:34 4:15 Mobile 2:51
- #15 -And third, a mobile first world equates to more immersive and interactive communication. -I mentioned earlier that most people use two or more devices per day. -And we want them to work seamlessly in sync with the other. -When people are on their many devices, they are operating within the framework of apps. [TRANSITION] In fact…the amount of time people spend within apps has actually increased over the last 2.5 years… LEE’S NOTES: -In the 2020 transition from home to work, device-to-device, there will be no such thing as “offline mode.” Connected devices will be fully integrated into every task on a daily basis. -And recall the number of media messages today’s most connected consumers absorb – 1,000 each day? ORIGINAL COPY: -The smartphone is the key to unlocking the internet of things Talk about Pre-Digital >Internet >Mobile Web>Apps
- #16 Re-order chronologically – Radio, TV, Internet etc (remove LInkedIn and Twitter)
- #17 -[TRANSITION] In fact, according to Nielsen…the amount of time people spend within apps has actually increased over the last 2.5 years… -So while the average number of apps has stayed the same, the time spent within them has increased. -This tells us a few things:1) apps are here to stay. 2) they are a great way to connect and engage with the people you care most about. 3, and most importantly, they are huge drivers of loyalty and in this business, loyalty goes a long way. -Part of this is bc our mobile-first world is app-driven, yes. But part of this is because we’ve gotten better at taking cues from what smartphones tell us about people….
- #19 -Already, we’re starting to see them in cars, hotel rooms, in flight, and in Virtual Reality as well. -Just a few short years ago, these things seemed like a distant reality, but they’re becoming increasingly more mainstream, which will all amount to more opportunity in Travel. [TRANSITION] Think about a few years ago when texting became a normal part of our lives…
- #20 It’s exciting to think that we’ve reached a new era. There is a lot this industry has to look forward to. Although VR and AR are not mainstream yet, there is a ton of opportunity for this industry to take better advantage of. More time on mobile has led to more chat, more video, more texting, more user generated content. More communication and feedback bw organizations and their customers. More opportunity for 1:many; 1:few, and 1:1 communication at the touch of your fingertips. We’ve reached a new era in that people are sharing photos and videos, texting, and messaging more and more. And people are also able to do that with businesses. Whether you’re an airliner and want to chat with customers about a change in flight or recent purchase, whether you’re a customer and you want to ask about an upgrade via texting, communication is becoming even more immediate, more effective, friendlier, more convenient. We’re getting there. Whether you want an ad to deep link to your app to convert or whether you want a customer to reingage with your app, these are all realities that will make it more convenient to build meaningful connections with your customers, and to do so with context. DESPITE ALL THESE CHANGES AND OPPORTUNITIES, AND GIVEN THAT PEOPLE ARE PREDOMINANTLY SPENDING THE BULK OF THEIR TIME ON MOBILE DEVICES, MARKETING STILL HASN’T CAUGHT UP IN TERMS OF REACHING PEOPLE WHERE THEY ARE SPENDING THEIR TIME. Here’s what I mean:
- #21 And ever since there were products to sell, there were marketers, and marketers have followed the people. But so far that’s not proving to be the case with mobile. As an example of what this means on a macro level, people in the US spend 25% of their media time on mobile, yet [CLICK] advertisers only spend 11% of their budgets there. The IDC estimates that 632B will be spent on advertising this year -- $16B, or 2.5%, of that will be spent on mobile. This is disproportionate at best and when you think about evolving your business in a way that will both propel growth and keep pace with people’s expectations, this disparity will have to shrink. But I want to be clear. This shift won’t happen overnight. Digital is difficult, but it’s not daunting. Your longest-held objectives are not only achievable, but they are more efficient on mobile. And when you think about employing digital and mobile in a way that will grow your business and your brand, it requires putting in place organizational structures that enable your Marketing team to work with your Communications team, to work with your agency, and so on….So that your customers are seeing and feeling personally relevant messages that you want convey at the right moment…and within context of family and friends. While the landscape is certainly more complicated, there’s a ton of opportunity in this new mobile-first, mobile-obsessed environment to advertise and be able to connect with people, en masse, in new ways. [TRANSITION]. I want to talk about how we apply this new, mobile-first world to advance this industry’s longest held objectives:
- #22 Inspiration Conversion Retention -We know that technology has changed the dreaming phase of travel to be infinitely more shareable. Travel companies can now inspire their customers at scale. -As prices have commoditized to the lowest common denominator, leveraging data for more efficiency and accuracy is essential to conversion. -Third, retention. Keep people. You want to keep people coming back. In a commoditized and increasingly crowded travel ecosystem, customer loyalty is an increasingly important lever. But regardless of your objectives, your business is based on people and people are at the heart of travel… [TRANSITION] -Doing this will rely on three key areas:
- #23 FIRST, Connection. -This means establishing meaningful and timely connections with all of your prospective and current customers. -On the customer spectrum, you can use large, people-based platforms to engage with people you think are in market, those who have given clear signals that they’re ready to buy or book, and even your most loyal customers. -[TRANSITION] For context, there are XXX million apps in the app store.
- #24 -[TRANSITION] Think about a few years ago when texting became a normal part of our lives… -We started taking and sharing more photos. As a matter of fact, smartphones enabled just about anyone to be a photographer, and a travel agent. Game changes for this industry. -About a year of so ago, video became one of the newer capabilities, providing an even more engaging mechanism for inspiring customers, their journeys, and sharing. -[TRANSITION] Now, we’re reaching a world of spherical videos….
- #25 These are spherical videos. You can move around by changing your viewing angle, because these are filmed with up to 24 cameras. This is a new and much more immersive type of video content. It’s not something you consume passively, you can interact with it. We will feel more immersed AND more connected.
- #26 I'm sure you've heard quite a bit about Facebook Messenger. I'd like to tell you a bit more about it now, share how we are thinking about the product, and give you a glimpse into the tests we're running now that will help guide the product's future. Facebook has always been about helping you connect with the people, businesses and organizations that matter to you. While part of that is enabling public one-to-many communication like Page Posts and Status Updates, it's also about driving private one-to-one and one-to-some communication. We've been fascinated with and keeping a close eye on person-to-person messaging for years and that's why that functionality has actually been built into our products since the early days of the company. It's evolved from a simple message product, to Facebook's inbox (your @facebook.com email address) and ultimately, in 2010 into Messaging. After seeing usage grow exponentially month over month, we spun Messaging off into its own mobile App in 2011. And eventually, due to our belief that Messaging is core to our business and to help grow the product and behavior, we both established Messenger as a primary part of our Family of Apps and Services by removing it from the Big Blue App and also acquired WhatsApp in early 2014.
- #30 The second way to inspire, covert and retain customers is to provide a convenience. This seems simple but some of the best-performing apps are easy to use and make people’s lives easier. This is true in Travel, just as it is in Retail, Financial Services, or even Gaming.
- #31 In this mobile-first, app-driven environment, everything is on-demand and at our fingertips. Our phones are essentially supercomputers -- 100x more powerful that the computers that sent the Apollo to the moon. From grocery delivery, to cleaning services, Uber or Lift, dinner at your doorstep in a matter of minutes, the ease of convenience should not be overlooked. This is no different in Travel. And it is no different for your brand. [TRANSITION] Let’s take hotels for example. And see how this is playing out right now.
- #32 Where you used to have limited service, you now have limitless service. Inexpensive, faster, more opportunities for feedback, overall a more convenient and seamless experience. LEE – EXPLAIN!!!
- #33 Think of your hotel experience: In-room ent – Netflix Laundry – Washio Gym – ClassPass Mini-Bar – Saucey In-room dining – GrubHub Restaurant – Open Table Parking – Uber 1. Restaurant = OpenTable 2. Spa = StyleSeat 3. Reservations = HotelTonight 5. Laundry = Washio 6. Gym = ClassPass 7. Mini-Bar = Saucey 8. In-room Dining = GrubHub 9. Parking = Uber Hotel only left with bed, bathroom, Wifi
- #34 -Third, I want to talk about context -Bc you can now identify who people are across their devices, you can serve them more meaningful and more timely messages, within the context of their family and friends. Within the context of feeds. -In a time where people are connected all the time—every day—and using multiple devices, the ability to know who you’re reaching and when you’re reaching them helps advance ongoing conversations. -Reaching people within context is pivotal…
- #35 But there is a lot of noise. A lot of activity. A lot of competition and distractions. And you need to be able to breakthrough the clutter. You no longer have to rely on generic demographics, you can deliver messages that matter, at moments that matter. I often get the question of, “what is the best ad on Facebook or Instagram?” And there is no generic answer. TRANSITION: My best advice is to make your add personally relevant. Because you can do so. Because people expect this. Because doing so is what will make your brand matter to someone immediately and over time.
- #36 And each ad experience on platforms like Facebook and Instagram should be meaningful and relevant. In Facebook News Feed for example, which is essentially a personalized newspaper, you have a patchwork of what and who you care about, your interests—what matters to you. And when you think about your ability to drop in your highly relevant ad—in that news feed--and show it to just the right people, and at just the right time, you now have a formula for turning people into customers and for turning customers into long-time customers And the capability of doing this en masse is truly “personalized marketing at scale”. [TRANSITION] Sounds like an oxymoron, but there’s a lot of merit to it and here’s what I mean. EXTRA (BRAND NOTES) And when you think reaching her or him or whoever those people are, you’re shaping perceptions that all add up to how people perceive your brand. So making those interactions matter over time is what will move your business over time. But this day in age, people don’t want to just buy something. They want to buy into something. They want to buy into what you stand for. So the idea of humanizing your brand, in a way that people can connect with, is, ironically, becomes more powerful and meaningful in this digital landscape.
- #37 -On large, people-based platforms, you’re not reaching an email address or an account number. -You can reach real people and gain a deep understanding of their intentions. -Lots of signals that indicate intent -No better signals than people who have visited your app or website, or both. -Once you have that signal, it’s massive missed opportunity. Good targeting is the difference between a conversion and a missed opportunity. It’s that simple. -This takes the meaning of big data—or targeting, which is how I think about it—to an entirely new realm of possibility. -It has also changed the face of travel because you can use information to personalize experiences for people. -You can pinpoint, to a science, who you want to reach and when you want to reach them. -Real identity-based networking (like Facebook) plus your data allows for long-term relationships with customers that increase the ROI of each customer over time. -With privacy-safe structures in place, combine that data. -Leverage your own data—and match it with that on digital for maximum reach. -That is how so many businesses are seeing tremendous result.
- #38 That's what this new mobile-first, constantly connected world allows for Travel marketers. -And putting systems in place that allow you to build systems that will allow you to change your future—will actually change your future. -Integral to that is an investment in connectivity because PEOPLE are always connected. -What I mean is: one of THE best investments you can make is in mobile. -This also includes breaking down the silos within your organization to make those investments possible…Investments that will give you access to reach all of the people who matter to you. -Access to having those meaningful conversations. -From inspiring people, booking people, and keeping your most loyal customers close to you, you have more control than ever how to help drive profit. -With mobile, -You have the power to drive growth and optimize your market potential. -You have the power to scale farther and faster than ever. -You have the power to harness the power of all of the people who matter to you. Thank you.