Loyalty Drives Consumers More Than Discounts, Deals, Content

Media Post's Online Media Daily by Gavin O'Malley, Yesterday, 9:01 PM Deals, discounts, and exclusive content are all nice -- but not nearly as important to social-media consumers as the inherent loyalty they feel for certain brands. In the fourth quarter of 2012, 60.7% of mobile users said they followed brands on Twitter in a show of natural support, compared to 51.9% who did so simply to receive sales or deals, according to mobile video ad technology company Rhythm NewMedia. Conversely, 51.1% of mobile users said they followed brands on Twitter just to receive exclusive content and updates. Similarly, while 57.6% of mobile consumers reported “liking” brands on Facebook in a sign of allegiance, 55.9% did so simply for the sake of sales or deals, and just 39.8% reported doing so for exclusive content. But can’t brands build loyalty by offering deals, original content, and other incentives? Yes and no, according to Ujjal Kohli, CEO of Rhythm NewMedia. “You can definitely strengthen brand loyalty through mobile video advertising that provides an optimal launching point to drive social engagements with your brand,” he said. Regardless of how brands court them, mobile engagement is soaring. In the fourth quarter of last year, a full 74% o of users accessed Facebook -- and 63% accessed Twitter -- several times per day via smartphones and tablets, Rhythm reports. 68% of mobile social users "like" brands -- be it a show, product, store, or service -- on Facebook, while 56% follow brands on Twitter. As a result, 24% of marketers are now activating social media through mobile campaigns, which represents a 430% increase year-over-year, according to Rhythm. In 2012, Rhythm said it oversaw mobile video ad campaigns for some 200 brands, including Disney, Samsung, McDonald’s, and General Motors. As Philip Jay LeNoble, Ph.D. of Littleton, CO notes, "For local-direct clients....helping build the brand name of the client with creative is more valuable to them than the 'deal-of-the-month.' Consumers remembers how they were treated during their shopping experience rather than a special in order for a business to gain and enjoy the financial rewards from customer retention."