Analysis of Social Media Marketing Impacts on Algerian Consumers : Case Study on Mobile Operators

Analysis of Social Media
Advertising Impacts on Algerian
Consumers : Case Study on
Mobile Operators
Presented by: M. Karym Bentebbal
Branding, 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
2EHEC Kolea, Algiers. Mai 16, 2016
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

Source: we are social, 2016 Digital Yearbook
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)

 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

 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
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
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
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
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.

 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.

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

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?”

What is wrong today with this model?

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

McKinsey circular journey model :
CUSTOMER DECISION JOURNEY
1. The Initial Consideration
2. The Active Consideration
3. The Closure
4. The Post Purchase Experience

Now Let’s take a look at the Algerian Consumer
Decision Journey

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…”

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).

INITIAL CONSIDERATION

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.)

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).

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

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.

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”.

PURCHASE AND LOYALTY LOOP
Post 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.

PURCHASE AND LOYALTY LOOP
There 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.

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.

Key Learnings:
“They are fighting the
battle for attention,
allocating most of their
marketing budget to the
initial consideration
phase”.

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

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”.

…That’s it for today!
Thank you for your interest 

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

Analysis of Social Media Marketing Impacts on Algerian Consumers : Case Study on Mobile Operators

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