Report Offers Insights on Brand's Use of Social Platforms for Customer Engagement

Jan 12, 2017

Digital benchmarking firm L2 Inc. released its fourth annual Intelligence Report: Social Platforms 2017. The L2 report evaluates the digital strategy and performance of 427 consumer brands with active social media strategies across nine industry verticals including Activewear, Auto, Beauty, Beverages, Consumer Electronics, CPG, Fashion, Retail, Watches & Jewelry. The report addresses social media platforms Facebook, Instagram, Twitter, YouTube, Snapchat, Periscope, WeChat, and Weibo in the US, Europe, Japan, Korea, and China.

While the share of posts promoted by Index brands on Facebook hovered around 16% from February to October 2016, average interactions per promoted post decreased 19%. Although the proportion of promoted Facebook posts remained constant across all Index brands, CPG and Luxury brands aggressively dialed up Facebook post promotion—promoted posts now account for at least a 1/5 of all Facebook posts in these industries.

Instagram remains the dominant engagement platform, accounting for 92% of all social interactions. However, changes to its algorithm have led to a decline in organic reach. While post frequency increased from nine posts per week during Q3 2015 to 10 posts per week during Q3 2016, interactions for every 1,000 followers decreased by 30% across Index brands.

Sixty-six percent of Index brands use Twitter to provide customer service, but brand replies on the platform are declining. The average number of unique customers to whom Index brands replied on Twitter declined by 15% from Q1 to Q3 2016. In some verticals, this decline was even greater—Activewear brand replies declined by 32% and Department Stores/CPG brand replies fell by 24%.

Snapchat brand account adoption grew 50% from January to October 2016, increasing overall adoption to 64% of brands. Snapchat advertisements also increased—23 brands accounted for 161 Snapchat Discover ads in January 2016, while 63 brands accounted for 387 Snapchat Discover ads in October 2016.