Consumers' Use of Social Media in Malta 2016

A research exercise conducted by ICON in collaboration with the University of Malta

Consumers’ Use of

SOCIAL MEDIA

IN MALTA

Contents Introduction....................................................................................................................................................................3 Key Findings...................................................................................................................................................................4 Most Frequently Used Channels................................................................................................................4 The Time Factor.....................................................................................................................................................4 Websites vs. Social Media...............................................................................................................................4 How Consumers Engage With Social Media......................................................................................5 Use of Social Media.............................................................................................................................................5 Demographics...............................................................................................................................................................6 Age.................................................................................................................................................................................6 Education...................................................................................................................................................................6 Gender.........................................................................................................................................................................6

1. USAGE AND ENGAGEMENT 1.1 Consumers’ Use of Social Networks........................................................................................................7 1.2 Use vs. Age...............................................................................................................................................................8 1.3 Use vs. Gender.......................................................................................................................................................9 1.4 Time Spent Daily on Social Media.............................................................................................................9 1.5 Usage By Device............................................................................................................................................... 10 1.6 Social Media Pages vs. Websites........................................................................................................... 10 When researching a company, what do respondents turn to most?..................................... 10 1.7 Consumer-Related Activities...................................................................................................................... 11 1.8 Engagement with Facebook Adverts...................................................................................................12

2. SOCIAL MEDIA’S INFLUENCE ON CONSUMER PURCHASING DECISIONS 2.1 Social Media’s Role in Consumers’ Purchasing Process...........................................................15 2.2 Impact of Following Brands on Social Media..................................................................................17 2.3 Impact vs. Time.................................................................................................................................................. 18 2.4 Influence of Social Media Advertising on Consumers.............................................................. 19 2.5 The Time and Age Factor............................................................................................................................20 2.6 The Power of Reviews....................................................................................................................................21

About the Authors................................................................................................................................................... 25 About ICON.................................................................................................................................................................. 27 About the Faculty of Media and Knowledge Sciences...................................................................28

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Consumers’ Use of Social Media in Malta | 2016 | ICON

Introduction A research exercise conducted by ICON in collaboration with the University of Malta

The explosion of digital technology over the last

The questions for marketers trying to leverage these

decade is astounding. A staggering 3.42 billion people

platforms are vast, and include:

around the world are now online . In Malta alone, 1

• What networks are local consumers using

the number of Internet users has more than doubled

most regularly?

over the last ten years, with 73% of the population

• At what stage in the purchasing process do

connecting to the Internet in 20152. Over this time, digital technology has become an integral part of

users refer to social media, if at all?

consumer activity in Malta and across the world.

• What types of social media content hold the

Consumers are increasingly resorting to the Internet

most influence on their purchase decisions?

for all aspects of their purchases and purchasing

• What kind of advertisements are most

decisions. They use it as a tool to search and evaluate a variety of products, to communicate with brands and other consumers as well as to make online purchases and manage returns. Digital technology has had such an impact on mainstream retail that Gartner Research predicts that by the year 2020, customers will manage 85% of their relationship with a company without ever interacting with a human3. Social media plays a big role in these digital relationships and it seems that its significance will continue to grow in the future.

effective on these platforms?

ICON has teamed up with the Faculty of Media and Knowledge Sciences at the University of Malta to take an in-depth look into Maltese consumers’ usage of social media and gain insight into how social media platforms and the content within them are influencing customers’ purchasing decisions. The findings that have emerged are intended to help guide local marketers in reaching out to local consumers more effectively via these networks.

Although social networks are not entirely direct e-commerce platforms (websites where one can purchase products & services), they play a key part in reaching and influencing potential customers. With

Digital technology has become an

1 in every 4 minutes of time spent on the Internet

integral part of consumer activity

being used for social networking⁴, social media is an

in Malta and across the world.

essential platform for brands to interact with new and existing consumers.

¹ Source: http://www.internetlivestats.com/internet-users/ accessed on 27/05/2016 ² Source: http://www.internetlivestats.com/internet-users-by-country/ accessed on 27/05/16 ³ Source: http://www.gartner.com/imagesrv/summits/docs/na/customer-360/C360_2011_brochure_FINAL.pdf accessed on 27/05/16 ⁴ Source: http://www.adweek.com/socialtimes/time-spent-online/613474 accessed on 28/05/16

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Consumers’ Use of Social Media in Malta | 2016 | ICON

Key Findings The findings within this report are the result of research conducted with a sample of 790 consumers in Malta during 2016. The report also contains a comparative analysis of similar research held with a similar sample in 20145 and the corresponding change in trends which emerge.

Most Frequently used Channels

The Time Factor

1. Facebook (89%) and YouTube (63%) are the

4. Accessing social media has become a daily

most frequently used social media networks

activity for 99% of the Maltese market. Younger

in Malta. This is consistent with their huge share

respondents tend to spend a greater portion

in the social media market on a global level,

of their time on these channels in comparison

wherein both channels registered more than

to older demographics. In fact, the majority of

a billion active users worldwide in 20166. This

respondents under 30 invest between 2 to 4

is consistent with ICON’s research carried out

hours each day, twice as much as those aged

in 2014, which found that marketers in Malta

between 30 to 40.

mainly used Facebook, LinkedIn and YouTube to reach their target audience.

2. Whilst some marketers today may perceive Google+ as superfluous, the older demographic in this survey (60+), still use this channel on a regular basis, making it the 3rd most popular network amongst this age group.

Instagram and Snapchat, on the other hand,

Websites vs Social Media

are the more popular channels amongst those under the age of 21. This is consistent with general global statistics, where Snapchat now has the highest reach amongst US respondents between the ages of 12 and 24.

5. Although increasing in popularity, it is important to note that businesses should not rely on their social media channels alone to

3. Pinterest is more popular amongst women

market their business. Results show that only

(67%) than men whilst LinkedIn is more popular

13% claim to solely refer to a company’s social

amongst males (67%). This is strikingly similar to

media page when researching a product or

Pinterest’s demographics worldwide where out

service. The remaining 87% refer to a company’s

of its 100 million active users, 71% are female .

website or both website and social media.

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⁵Source: https://www.icon.com.mt/publications/social-media-marketing-in-malta/ accessed on 2/05/16 6 Source: http://www.statista.com/statistics/272014/global-social-networks-ranked-by-number-of-users/ and https://www.youtube.com/yt/ press/statistics.html accessed on 28/05/16 ⁷Source: http://sproutsocial.com/insights/pinterest-statistics/ accessed on 29/05/16

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Consumers’ Use of Social Media in Malta | 2016 | ICON

How Consumers engage with Social Media

Use of Social Media

6. Although social media competitions have

10. Respondents feel that the most

been considered an effective way of obtaining

valuable utility that social media offers them

large amounts of user data, marketers may

as consumers is the additional access to

wish to consider new promotional exercises.

information about products and services. In

According to results, entering competitions via

fact, 67% regularly refer to social media to

social media is the least popular activity. On

gather information on different products or

the other hand, booking services and making

services before making a purchase.

reservations via these channels is clearly the

11. Further analysis also reveals that

preferred activity carried out on social media.

When marketers engineer these experiences to be user friendly they create more affinity with their users than when they launch frivolous competitions.

respondents who spend more time on social media are more likely to feel that their purchasing decisions are being influenced by these channels (which may itself be an indication of confirmation bias8 which tends

7. Consumers in Malta are more likely to express

to favour the recall of information from one’s

positive sentiments towards a brand over social

existing belief and information eco-system).

media than complain about them. Interestingly,

In fact, 56% of respondents feel that they are

female respondents were found to be 10%

more likely to purchase products or services

more likely to praise brands than males.

from brands they follow on social media.

8. Facebook advertisements inviting consumers to learn about discounts as well as those inviting them to like a Facebook page are the most popular adverts. This indicates a strong attraction to financial rewards surrounding retail products. Consumers are rewarded for clicking on these adverts by receiving new information about brands and companies.

9. User-generated content was found to be significantly more influential on respondents’ purchasing decisions than content generated by the company itself. In fact, community reviews prove to be the most influential content (77%).

⁸Definition: https://en.wikipedia.org/wiki/Confirmation_bias accessed on 2/05/2016

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Consumers’ Use of Social Media in Malta | 2016 | ICON

790

respondents answered ICON’s online survey on consumers’ use of social media in Malta. Below are the demographics of the research sample.

>21

41-50

year olds

1%

year olds

31-40

22%

year olds

51-60

32%

61+

year olds

year olds

16%

6%

The larger majority of respondents were male (59%).

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Consumers’ Use of Social Media in Malta | 2016 | ICON

1. Usage and Engagement The first goal of this study was to develop an understanding of how consumers in Malta are using and engaging with social media. Respondents were asked about the social networks which they access most frequently, the devices they use to access them, as well as the length of time spent on these platforms each day.

1.1 Consumers’ Use of Social Networks • 99% make regular use of at least one social media

Use of Social Media Across Platforms

network, with Facebook (89%) and YouTube (63%) being the most popular.

• Instagram and Snapchat are twice as popular

Facebook

amongst respondents under the age of 21 as they are

89%

amongst older age groups.

Results show that Facebook and YouTube are by far the most utilised social networking sites in Malta. This is consistent with their huge share in the social media market on a global level, wherein both channels have registered more than a billion active users worldwide in 20169.

YouTube

Linked-In

Other networks that are significantly popular across

63%

41%

TripAdvisor

Instagram

37%

22%

Google+

Twitter

22%

18%

Pinterest

Snapchat

18%

4%

different demographic profiles in Malta include LinkedIn (41%) and TripAdvisor (37%).

ICON’s 2014 research, ‘Social Media Marketing in Malta’10, shows that marketers in Malta mainly use the social media channels; Facebook (95%), LinkedIn (42%) and YouTube (38%) to reach their target audience. The present research indicates that the top three social media networks remain unchanged since 2014. According to a report published by the European Commission, in comparison to other EU citizens, “Maltese are also the most likely to use social media on a daily basis, with 55 per cent using Facebook or Twitter every day. On average, only 37 per cent of Europeans used social media to share something about themselves or their experiences every day, with 60 per cent doing this at least once a week” .

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⁹Source: http://www.statista.com/statistics/272014/global-social-networks-ranked-by-number-of-users/ and https://www.youtube.com/yt/press/statistics. html accessed on 28/05/16 10 Source: https://www.icon.com.mt/publications/social-media-marketing-in-malta/ accessed on 5/05/16 11 Source: http://www.timesofmalta.com/mobile/view/20160711/local/maltese-trust-ranking-websites-more-than-any-other-eu-nation.618462 accessed on 12/07/16

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Consumers’ Use of Social Media in Malta | 2016 | ICON

1.2 Use vs. Age It is interesting to note that on a global level, according

In an interview with 24 Snapchat users, Business

to Social Media Examiner’s Social Media Marketing

Insider wanted to find out why millennials are such

Industry Report 2015 , international marketers planned

avid users of Snapchat. Results show that users

to increase their use of Twitter (66%), YouTube (66%)

enjoy the ‘ephemeral appeal of the network’, the fun

and Facebook (62%) in 2016. However, a significant 82%

and unique aspect of the app and the quirky snap

stated that they had no plan on using Snapchat for

art that comes with it14.

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marketing purposes.

Over 60

Under 21

Although some marketers in Malta may perceive

On the contrary, ICON’s results show that, although

Google+ to be superfluous, research shows that it

Instagram (22%) and Snapchat (4%) do not rank

is the third most popular network used ona regular

amongst the most regularly accessed platforms, they

basis by respondents aged over 60.

are heavily used by younger respondents. In fact, 65%

The use of Google+ drops incrementally with

of these Instagram users are under 21 years of age.

younger respondents. In fact only 10% of participants

The highly visual nature of these applications as well

aged between 21 and 30 are regularly active on this

as the creative potential they offer could possibly

platform.

suggest why these platforms are prevalent amongst

These findings suggest that the latest social

younger generations.

media channels which are of a more engaging

Marketers trying to reach out to a younger audience

and interactive nature are more popular amongst

may potentially gain from using such platforms as long

younger generations and are also more commonly

as their content is well-groomed for these networks.

used on mobile devices.

In fact, on a global scale, nearly 100 million users are now active on Snapchat on a daily basis13.

Use of Instagram, Snapchat, Google+ across different age groups Under 21

Instagram

21-30

31-40

41-50

51-60

61+

Snapchat

Google+

Source: https://www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport2015.pdf accessed on 28/05/16 Source: http://www.businessinsider.com/snapchat-daily-active-users-2015-5 accessed on 28/05/16 14 Source: http://www.businessinsider.com/why-millennials-use-snapchat-2015-2 access on 08/07/16 12 13

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Consumers’ Use of Social Media in Malta | 2016 | ICON

Popularity of Pinterest and LinkedIn across gender

1.3 Use vs. Gender

Male

Female

Differences in popularity between certain social networks were also found to exist across genders. Results show that Pinterest is a lot more popular amongst women (67%) than men. This is strikingly similar to Pinterest’s demographics worldwide where out of its 100 million monthly active users, 71% are female15.

On the other hand, LinkedIn is more popular amongst male respondents. From the 333 active LinkedIn users taking part in the survey, 67% are male.

According to the Pew Internet & American Life project in 2015, 68% of American females reported to use a minimum of one social networking site, versus 62% of males. Albeit slightly, women have consistently outdone men in terms of social media usage since 200816.

Pinterest

LinkedIn

1.4 Time Spent Daily on Social Media • 99% of respondents access at least one social media . network on a daily basis • Millennials spend the most time on social media, averaging to 2-4 hours every day.

• In fact, results show a pattern in use; the younger the user, the more time spent on social media.

Accessing social media has become a daily activity for most local consumers. 69% spend upwards of an hour each day on these media channels, while only 1% do not access their social media accounts on a daily basis.

0 Hours (1%)

< 1 hour (30%)

1-2 hours (34%)

2-4 Hours (22%)

4-6 Hours (7%)

6-8 hours (4%)

> 8 hours (2%)

AGE Under 21 21-30 31-40 41-50 51-60 61+

vs.

TIME 2-4 hrs 2-4 hrs 1-2 hrs 1-2 hrs > 1hr > 1hr

Younger respondents tend to spend a greater portion of their time on social media compared to older demographics.

The majority of respondents under 30 years of age invest between 2 to 4 hours in social networking each day, twice as much as those aged between 30 and 40. This is unsurprising, given the fact that most millennials in Malta are digital natives and have been raised in a digitally connected and mediasaturated environment.

It is interesting to note that according to ICON’s 2014 research, only 59% of local marketers claimed to use social media to market their business. More so, 21% believed that it ‘wasn’t necessary’ for their business. Judging by the popularity of such networks, especially amongst a younger audience, two years down the line, research suggests that social media is no longer a ’nice to have’ in marketing your business however critical to succeed. What would you think about a company that does not have a Facebook Page or a LinkedIn account?

Source: http://sproutsocial.com/insights/pinterest-statistics/ accessed on 29/05/16

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Consumers’ Use of Social Media in Malta | 2016 | ICON

1.5 Usage by Device Mobile devices seem to be the preferred choice when accessing social media pages. This is highly

What device do you use most often to access social media?

likely due to the sheer convenience and efficiency of users being able to access their account wherever they are, with just the touch of a button.

It’s evident that mobile devices will play a large role in shaping the future of social media usage, especially considering that a number of social platforms like Snapchat and Instagram are designed mainly for mobile use. Marketers should

40%

47%

13%

Laptop/Desktop

Smartphone

Tablet

ensure that their marketing campaigns and digital platforms are mobile-optimised so as to capture the attention of an increasingly mobile audience.

In fact, Snapchat is the “fastest-growing social

60% access their social media

network among millennials”, according to a survey

accounts most frequently using

from Harvard University’s Institute of Politics.

tablets and/or smartphones.

Instagram follows closely17.

1.6 Social Media Pages vs. Websites When researching a company online, what do you turn to most?

For businesses trying to digitally connect with customers, setting up a social media page may not be a sufficient substitute for a website. Only 13% of those surveyed

43%

solely refer to a company’s social media pages when

Company Website

indicating that the costs associated with building a fully

researching information on products and services, functional website is critical to ensure digital presence at

9% Company’s Social Media Pages

every possible touch point.

Compared to a generic Facebook page, a strong website can give consumers insight into what the company is about and provide more information about the organisation’s products and services within an

44%

environment which may be controlled by the retailer

Both of the above

that social media pages are not important, however

4% Other

rather than the social media platform. This is not to say companies should present themselves on a wide variety of digital channels in order to capture the attention of potential consumers and reach their target market. In

section 2 one can see how consumers are influenced by social media.

Although websites should take predominance over social media channels, IBM’s commerce and social amplification director states that “In 2016, leading companies will double down on creating branded social channels that serve as an online home — an inviting place for customers and prospects to learn more about your brand and what you offer18”.

Source: http://www.ibtimes.com/snapchat-outranks-instagram-fastest-growing-social-network-american-millennials-2220089 accessed on 29/05/16.

Source: http://www.silverpop.com/blog/2016-Trend-Social-Media-and-Automation-Will-Combine-in-New-Ways-to-Improve-the-Customer-Journey accessed on 19/05/16.

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Consumers’ Use of Social Media in Malta | 2016 | ICON

1.7 Consumer-Related Activities relationships with them.

What activities do people carry out on social media?

• 65% regularly book services and make

Many businesses in Malta use competitions on social

reservations (e.g. restaurant bookings) through

media as a strategy to initiate these digital relationships

social media, making it the activity that

and gain more followers. Social media competitions

consumers carry out most frequently.

are an efficient way of obtaining user-data, however are consumers really engaging with them? The data

• On the other hand, entering competitions via

shows that 45% never enter such competitions and a

social media ranks the least popular activity

further 35% only do so on rare occasions. It seems that

amongst those surveyed. In fact, more than 80%

consumers may be tired of the repetitive routines of

state that they rarely take part in competitions.

participating in Facebook competitions and that they

Consumers are using social media to interact with

have been outdone. Increasing concerns regarding

brands and businesses in a number of ways. Results

privacy and the sharing of personal data may also

show that the activities local consumers carry out most

contribute to a mounting disinterest in competitions.

regularly over these networks include:

Nevertheless, whilst this marketing technique may not be entirely discarded, one must question whether

• Booking services

it creates a permanent tie to an engaged audience,

• Keeping up to date with brands

or simply amasses jaded followers who hop from competition to competition.

• Requesting customer support This shows just how important it is for businesses to be present on social platforms and engage with their audience in an efficient and meaningful way. By simply

45% of respondents claim that they never

providing an alternate channel of communication

enter competitions on social media.

through social media, businesses can engage with new and existing customers while developing strong

How regularly do you carry out the following activities?

Often

15%

Sometimes

Never 8%

13%

20%

25%

Rarely

21%

40% 41%

19%

40%

27%

4%

3%

2%

29%

35%

21%

31%

Complimenting brands

11

Requesting support

Keeping up with brands

Booking services

36%

31%

17% 45%

35% 42%

Complaining about brands

Taking part in competitions

Consumers’ Use of Social Media in Malta | 2016 | ICON

An activity which consumers do however carry out on social media is letting brands know how they feel about them. Consumers in Malta are more likely to express positive sentiments towards a brand over social media than complain about them. Interestingly, female respondents were found to be 10% more likely to praise brands via social media than males. They were also less likely to complain about them.

1.8 Engagement with Facebook Adverts

A Note About Facebook’s Algorithm

Which adverts are Facebook users most likely to

In Q3 of 2016 Facebook rolled out an update to its

interact with?

News Feed Algorithm that could have implications

• 45% of consumers are more likely to click on Facebook adverts inviting them to learn about discounts or to like a Facebook page.

on sponsored posts. Facebook’s Engineering Director stated that this update was implemented to put more emphasis on photos, videos, status updates and shared links from friends and family, while giving content from

• Facebook ads related to online competitions

publishers and liked pages less priority. So what does

appear to be the least favourite amongst

this mean?

respondents. More than a third of local respondents state that they are highly unlikely to click on such ads. This finding is aligned with the previously discussed sentiment relating

to participation in competitions.

Updates from friends will be ranked higher in the News Feed while updates from pages will take a lot more scrolling to reach. Facebook pages will now have an increasingly limited amount of space to compete for, which will be placed a lot further down the News

More and more businesses are using Facebook

Feed. Many Facebook users are not in the habit of

adverts as a tool to increase their social media

scrolling too far down their News Feed, so this update

reach. To gain understanding of what types of

may directly affect the amount of organic reach your

advertisements consumers engage with most over

posts get as well as affecting your page’s traffic in

Facebook, respondents were asked to measure how

general. Of course, this update is to improve the user’s

likely it would be for them to click on different types

experience on the social media platform, however, it

of ads. Facebook advertisements inviting consumers

doesn’t sound very promising for pages that rely on

to learn about discounts as well as those inviting

reaching a large audience through Facebook.

them to like a Facebook page are the most popular adverts amongst participants. This indicates a strong attraction to financial rewards surrounding retail products. Consumers are rewarded for clicking on these adverts by receiving new information about brands and companies. This further supports one of the key findings in this report in which it is stated that users tend to value the added information social

The posts people share on Facebook are a good reflection of the ideal image they want to create of themselves. Facebook is a tool for people to express their personality, so if you engage with your target audience on a personal level they are more likely to interact with your posts and thus, sharing them with their friends and family.

media offers them as consumers.

Of Consumers are more likely to click on Facebook adverts inviting them to learn about discounts or to like a Facebook page.

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Consumers’ Use of Social Media in Malta | 2016 | ICON

“As social media networks adjust their algorithms; the only way brands can ensure they generate a decent amount of traffic is through advertising… Now you’re encouraged to boost your post if you want to get the maximum amount of traffic. Even if you have 100,000 fans on Facebook, the only way to get the majority of them to see your content is to pay for visibility”.

Neil Patel

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According to ICON’s 2014 study, ‘The Use of Social Media Marketing in Malta’, only 50% of respondents claimed to invest in paid advertising on social media channels. 99% of which used Facebook to advertise.

Considering the response from this year’s research and the engagement which respondents have with adverts, advertising on Facebook should be considered as a key activity in a local marketer’s digital marketing strategy. Indeed, we are in the ‘pay to play’ phase of social media whereby marketers have no option but to invest in paid visibility to participate in the social arena.

According to ICON’s 2014 study, ‘The Use of Social Media Marketing in Malta’, only 50% of respondents claimed to invest in paid advertising on social media channels.

Source: http://www.socialmediaexaminer.com/2016-social-media-marketing-predictions-from-the-experts/ accessed on 28/05/16

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Consumers’ Use of Social Media in Malta | 2016 | ICON

2. Social Media’s Influence on Consumers’ Purchasing Decisions Having developed a better understanding of how respondents use and engage with social media, the subsequent part of this report seeks to investigate whether these platforms have an impact on consumers’ purchasing decisions.

2.1 Social Media’s Role in Consumers’ Purchasing Process • 81% refer to social media in at least one

Consumers are increasingly referring to social

stage of the purchasing process.

media to augment their knowledge on different

• 1 in 3 consumers use social media during the research stage, whilst gathering information on a product or service.

According to results, social media plays a role in the decision making process of many consumers. Data

products and services in order to make informed purchasing decisions. This exemplifies how important it is for brands to be actively present on social media in order to capture the market during this particular stage of the purchasing process and provide informative content to consumers.

showed that the vast majority (81%) refer to social

The role which social media plays throughout a

networks at least once when making a purchase.

consumer’s purchasing process decreases as the

Consumers are most likely to refer to social media

consumer draws closer to the post-purchase stage.

during the research stage following the recognition of the need to purchase.

In this stage the consumer seeks information about possible solutions to the ‘need’ and will search more or less information depending on the complexity of the choices to be made and his/her level of involvement.

67% of respondents regularly use social media to find information about different products and services before making a purchase.

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Social Media’s Role in Consumers’ Purchasing Process

Consumers’ Use of Social Media in Malta | 2016 | ICON

When making a purchasing decision at what stage do you refer to social media?

15% I never refer to social media

After buying the product (e.g. Customer Support)

19% 21% When buying the selected product

68% 33% When evaluating alternative products

Consumers are most likely to refer to social media during the research stage (68%). The role which social media plays throughout the process decreases as the consumer reaches the post-purchase stage.

2.2 Impact of Following Brands on Social Media • 56% of consumers are more likely to purchase products or services from brands they follow on social media.

The data indicates that engaging with customers through social media is an effective marketing method which has significant effect on the purchase decision. 75% state that this is due to the added information they receive from a brand’s social media pages, content and activity. Once again this highlights the huge value which consumers place on the information provided by social networks about products and services offered in the local market. It could be said that social media is a ‘go to’ channel for product information and perceived as a retail information source.

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Consumers’ Use of Social Media in Malta | 2016 | ICON

Why are you more likely to purchase a product from a brand you follow on social media?

75%

I have more access to information

10% I have more access to aftersales services

Percentage of Respondents

7% Other

8%

I trust the brand more

2.3 Impact Vs. Time Deeper analysis reveals that time spent on social media and the influence which the channels have on users, is directly proportional. Indeed, the more time spent on social media, the more influence the channels are likely to have on the user and his/her purchasing behaviour. This too indicates that marketers would be wise to focus on generating as much relevant content as possible, to retain audienceâ&#x20AC;&#x2122;s attention for longer periods of time and subsequently have a higher probability of influencing the purchase. Naturally, this also means that more engaged online users are the most obvious captive audience for marketers to address.

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Consumersâ&#x20AC;&#x2122; Use of Social Media in Malta | 2016 | ICON

Time Spent on Social Media Each Day <8

hours

6-8

hours

4-6

hours

7%

2% 4% 1%

2-4

0

hours

hours

22%

>1

hour

1-2

hours

30%

34% 18

Consumersâ&#x20AC;&#x2122; Use of Social Media in Malta | 2016 | ICON

2.4 Influence of Social Media Advertising on Consumers • 70% of consumers feel that social media

This seems to indicate that although consumers do

advertising has an influence on their purchasing

take social media adverts into consideration; other

decisions; however, a large percentage of these

forms of content on these platforms hold more

respondents (59%) feel that this influence was

influence on consumers’ purchasing decisions.

relatively low.

Nevertheless, marketers still recognise the huge importance of social media advertising. In fact,

Social media advertising is a common marketing

Facebook’s algorithm relies heavily on payment in

tool for brands. In fact, over 20 billion euros was spent worldwide on social media advertising in 2015

order for content to reach users.

alone20. Given the staggering amount of money

A report issued by Salesforce states that, “Nearly

invested in these channels, it is pertinent for this

two-thirds of marketers are boosting budgets for

study to determine whether these adverts actually

advertising on social platforms in 2016, making it the

do have an impact on consumers’ purchases.

third largest area for increased investment. Among

The results show that 70% do indeed feel that social media advertising has an impact on their purchasing

high performers, 80% will increase spending on advertising on social platforms”21.

decisions. However, the majority (59%) feel that they are only slightly influenced.

Do adverts on social media influence your purchasing decision?

11%

59%

30%

Yes, very much so

Yes, but only slightly

No, not at all

“70% of consumers feel that social media advertising influences their purchasing decisions”

Source: http://www.emarketer.com/Article/Social-Network-Ad-Spending-Hit-2368-Billion-Worldwide-2015/1012357 accessed on 29/05/16 Source: https://secure.sfdcstatic.com/assets/pdf/misc/state-of-marketing-report-2016.pdf accessed on 29/05/16

20 21

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Consumers’ Use of Social Media in Malta | 2016 | ICON

2.5 The Time and Age Factor Whilst the amount of time spent on social networks was found to be a significant factor in predicting how much influence adverts have on consumers., likewise, the age of the user has an interesting influence.

Adverts on social media have less of an influence on older demographics. In fact, 78% of consumers under 30 claim to be influenced by these adverts but influence steadily decreases the older the demographic. 54% of the 60+ demographic claim to be influenced by these ads. This is illustrated in the diagram below.

No, not at all

Yes, but only slightly

Yes, very much so

“78% of consumers under 30 claim to be influenced by adverts on social media but influence steadily decreases the older the demographic.”

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Consumers’ Use of Social Media in Malta | 2016 | ICON

2.6 The Power of Reviews • User-generated content is significantly

This makes sense in light of the findings in this report.

more influential on respondents’ purchasing

Facebook wishes to enhance the news feed for the

decisions than content generated by brands or

individual user. So what about pages? Pages will

businesses.

not be given as much priority as before. However,

• Community reviews prove to be the most influential form of social media content, 75% feel that reviews have a significant influence on their purchasing decisions.

Results show that consumers highly value other consumers’ social media content regarding products or services. In fact, respondents rated social media content such as ‘community reviews’ and ‘posts from friends’ as being significantly more influential than content posted by brands and companies. They are most likely perceived as being more trustworthy.

Facebook states that pages whose content gets shared and engaged won’t be affected negatively by this algorithm change. Therefore, it’s important for marketers to post content which they think their audience will not only appreciate but also, and most importantly, share.

It’s also interesting to note that consumers still feel that social media posts from brands are more influential than those from celebrities and opinion leaders. In fact, more than 40% agree that social media posts from celebrities have no influence at all on their purchasing decisions.

Consumers claim to see through the natural bias of information coming from sponsored posts and advertisements. In fact, Facebook has recently updated its algorithm to give priority to posts from friends and family rather than from pages. Friends and family posts will get top priority, followed by posts which inform and entertain .

Recently, Forbes “found that a whopping 81% of respondents admitted that recommendations and posts from family and friends directly impacted their buying decisions, while 78% of people said that social media posts of companies influence their buying decisions”22 .

Source: http://www.socialmediatoday.com/marketing/masroor/2015-05-28/social-media-biggest-influencer-buying-decisions accessed on 29/05/16 Source: http://blog.meetedgar.com/how-facebooks-new-algorithm-change-will-affect-your-page/?utm_source=Dash&utm_medium=email&utm_campaign=Dash%20July%206%202016&ajs_event=Clicked%20from%20dash&ajs_uid=max@icon.com.mt&ajs_prop_Email+Subject=Dash+July+6+2016 accessed on 09/07/16 22 23

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Consumers’ Use of Social Media in Malta | 2016 | ICON

How much influence does the following content have on your purchasing decisions?

22

No Influence

Low Influence

Medium Influence

High Influence

When making a purchase, which of the following affect your purchasing decision?

43%

Online Newspapers/Magazines

Blogs

25%

23

31%

Email Marketing

When it comes to other online content, online newspapers, blogs and email newsletters are the most influential on consumersâ&#x20AC;&#x2122; purchasing decisions,

Conclusion Marketers have long been aware of profound changes

The shift in the consumer decision making process

in the way consumers research and purchase

means that marketers need to adjust their spending

products and services. However, a failure to change

and to view the change not as a loss of power over

the focus of marketing to match that evolution has

consumers but as an opportunity to be in the right

undermined the core goal of reaching customers at

place at the right time, giving them the information

key moments of their buying decision process.

and support they need to make the right decisions.

The graph below demonstrates that the days of

This report seeks to highlight elements of specific

the traditional AIDA model (Awareness > Interest >

relevance to the domestic market which, if well

Desire > Action) are over as we now experience a far

understood and implemented by marketers, may

more complex cycle. Yet beyond mere acquisition

assist in boosting the efficacy of online initiatives.

strategies, there should be equal focus on retaining customers and converting influential customers into ambassadors who will spread their positive experiences with people within their network.

One can see that social media appears on various occasions within the buying decision process and marketers should always keep this in mind when developing their marketing strategy.

Source: http://www.crownpeak.com/blog/jim-howard/20141106-does-marketing-really-own-the-customer-experience.aspx

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Consumersâ&#x20AC;&#x2122; Use of Social Media in Malta | 2016 | ICON

Lead Authors

Nikki Schinas

Jon-Paul Calleja

Nikki is a digital marketing executive at ICON

Jon-Paul is an undergraduate student

and has been working with the company since

currently reading for an honours degree

2013. She graduated from The University of

in Communications with the ambition to

Malta in 2012 with a B.A. (Hons) degree in

pursue a Masters degree in marketing

Media and Knowledge Sciences and has since

communications. He has an eagerness to

worked on a range of digital marketing projects

learn and loves taking on new challenges.

for brands such as Air Malta, Finance Malta

As an avid bookworm with a passion for

and EY Malta. Nikki is Google certified and

travelling, he loves visiting new and exciting

spends much of her time working on marketing

places with a good novel by his side.

campaigns, digital marketing strategies, email marketing, e-marketing research, content writing, brand reputation management and social media marketing. Nikki loves to use her creativity in projects concerning digital marketing and also has a passion for anything related to art, design and ballet.

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Consumersâ&#x20AC;&#x2122; Use of Social Media in Malta | 2016 | ICON

Contributors

Gege Gatt

Carl Saydon

Gege is a lawyer with extensive experience

Carl is a Chartered Marketer (MCIM) with deep

in ICT corporate strategy and operations. He

experience in developing marketing strategy

is a founding member of ICON, a Microsoft

and managing digital marketing operations.

Partner company and a world-class software-

He is the Digital Marketing Manager at ICON,

applications development company. At ICON,

a Microsoft and Google Partner Company and

Gege holds the position of Director of Strategy

a specialist in offering Software Development

& Business Development and has led several

and Integrated Digital Marketing Solutions to

complex technology projects for blue-chip

the European market.

brands. ICON is a Google Partner and an ISO9001:2008 certified company.

He has experience working for large international organisations including Toyota

As a specialist in ICT law Gege provides advice

and FIAT and has worked within various

on matters relating to Data Protection, Computer

sectors including Technology, Financial

Misuse and ICT contracting. He is a founding

Services and Automotive across multiple

member and Vice President of the Malta IT-Law

European markets in both B2B and B2C

Association and is a specialist examiner in the

environments. Carl has a diverse marketing

field of ICT Law for Doctoral thesis submitted to

background in improving marketing processes

the University of Malta.

and maximizing campaign effectiveness whilst working in rapidly changing markets.

He holds a Bachelors degree in Sociology and a Doctoral degree in Laws from the University

He holds a Bachelors Degree in

of Malta. He is a member of the Camera degli

Communications and a Professional Post-

Avvocati (Malta), the British Computer Society

Graduate Qualification in Marketing from the

and the Chamber of Commerce, Malta. He is

Chartered Institute of Marketing (CIM).

ITIL certified, a qualified internal auditor for ISO 9001:2008 Quality Management Systems, a regular contributor to business and IT publications and a speaker at ICT events.

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Consumersâ&#x20AC;&#x2122; Use of Social Media in Malta | 2016 | ICON

Designers Roberta Scerri

Charlton Agius

Roberta Scerri is a Graphic Designer and is currently

Charlton is a UI/UX designer with 10 years’

carrying out an internship at ICON. Roberta is an

experience in creating high-quality designs,

effective visual communicator, inspired by both

graphics, mock-ups and layouts for both Web

recent and vintage designers and innovators. She is

and Mobile applications. For the last 8 years,

currently furthering her studies in the field focusing

Charlton has been using best practices and the

not just on Graphic Design but also on online

latest Web trends to create a rich, intuitive user

marketing, web design and usability.

experience for both ICON and their clients.

About ICON ICON is an award-winning Technology Company

ICON’s approach is driven by its passion to deliver

working across several digital channels to

excellence. This is achieved through a dedicated

combine rational business thinking with creativity

team of creatives, technologists and marketers

and deep technical know-how. Through its

who are steeped in business and technical

operations, ICON has deployed remarkable

skill and operate within ISO9001:2008 Quality

solutions for the European business community

Assurance standards and ITIL v2011 IT Service

and has offered high-value consultancy on ways

Management framework. It’s no surprise that time

to materialize business-results through better

and time again, clients have described ICON’s

application of technology.

work as: remarkable, clever, fresh.

With almost two decades of experience, ICON is

ICON’s clients come from a broad range

a leader in the field of complex cloud computing

of industries and include global blue-chip

and has won multiple business accolades in

companies and international organisations for

recognition of its work. ICON is a Microsoft Partner,

which it delivers a spate of services from project

a Google Partner and is an iOS and Android

management to development, consultancy

Licensed development firm. Its digital marketing

to 24/7 support, digital marketing to complex

executives are accredited from Distilled University.

custom integration as well as mobile solutions.

ICON provides results-oriented technology and

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transforms complex business strategies into

See a few examples of ICON’s work here: https://

simple and accessible web encounters.

www.icon.com.mt/icon-projects/

Consumers’ Use of Social Media in Malta | 2016 | ICON

About the Faculty of Media and Knowledge Sciences The Faculty of Media and Knowledge Sciences (MaKS)

These include programmes relating to the media

is one of the youngest of the fourteen faculties of the

and communications, digital arts, marketing

University of Malta having been established in 2011 to

communications, the management of knowledge

offer study programmes and carry out research that

and information, and cognitive science.

are relevant in a knowledge society and that reflect the importance of the knowledge-based economy.

The Faculty has recently moved into a refurbished and extended building that includes a new Digital Arts Lab and Art Room, new Cognitive Science Lab, new lecture halls, seminar rooms, and meeting areas. The Faculty offers a number of taught programmes at Diploma, Undergraduate and Postgraduate levels.

ICONâ&#x20AC;&#x2122;s published research ICON is committed to researching key ingredients that affect our digital ecosystem. We regularly publish papers which offer compelling and practical insights for organisations to unleash their potential in the sphere of digital business, especially in the local market. Download our previous publications here:

Social Media Marketing in Malta (2014)

Visual Online Marketing (2012)

Social Media Marketing in Malta (2011)

Digital Marketing in Malta (2011)

Contact us for a free consultation about Social Media Marketing or follow us on Twitter, Google Plus, Facebook and LinkedIn. ICON

T: (+356) 21440080

JPR Buildings

E: info@icon.com.mt

Taz-Zwejt Street San Gwann, SGN 3000, Malta

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Consumersâ&#x20AC;&#x2122; Use of Social Media in Malta | 2016 | ICON

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No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, ICON STUDIOS LTD., and its employees do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

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Consumers’ Use of Social Media in Malta | 2016 | ICON

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