Digital American Newsletter

While Facebook, Instagram, TikTok and Twitter are copying each others’ innovations and becoming more similar, Clubhouse, the first-ever voice-only social platform, is on fire.

The new social platform is exclusively real-time audio. There are no videos, pictures or text. And, nothing is recorded.

Clubhouse revolves around individual rooms organized by discussion topic. Members can start a room, or enter an existing one. Each room has a moderator who organizes the dialog.

The platform is currently by invitation only and has 600,000 members, including celebrities like Oprah, Ashton Kutcher and DeRay McKesson. Each member is given a few invitations to share. (Rumor has it, you can buy an invitation on eBay.) Clubhouse has a waiting list and promises to open to everyone “soon.”

Members like Clubhouse because it has interesting small group discussions, nobody has to be “camera ready” to use it, and it is easy to meet lots of people in real time, like at a professional conference.

The app was launched in April 2020 and still needs fine-tuning. Clubhouse currently has no monetization mechanism (for itself or influencers), there are concerns about platform safety, and it is not clear how they will keep conversations high quality when membership is opened.

Sources: Mashable 2021, New York Times 2021, Social Media Examiner 2021, Vogue 2021

Half of frequent ecommerce buyers are likely to join Walmart+, the Amazon Prime competitor launched 3 months ago. The more frequently consumers buy online, the more interested they are in the service.

(As a quick refresher: For $98/year, Walmart+ members get unlimited free delivery*, a 5c/gallon gas discount at Walmart and Sam’s Club, plus the ability to scan items instore and pay with the app, skipping the checkout line.)

• Two weeks after the service launched 11% of frequent online shoppers had subscribed.
• Among initial members, 45% also have Amazon Prime, 36% do not have a shopping subscription, and 19% abandoned Amazon Prime for Walmart.
• Consumers are most intrigued by Walmart+ unlimited free deliveries and same day delivery in a 1-hour window.
• Access to Walmart’s instore selection and the gas discount are most likely to tempt Prime members to switch.
• The most common reason shoppers are not interested in Walmart+ is because they already have Amazon Prime and do not want to pay for a second subscription.

Walmart+ is rapidly getting traction. However, it’s important to remember that experts estimate the service will have 10 million members within 12 months, while Amazon Prime has over 110 million in the US alone.

Sources: CNN 2020, Digital Commerce 360 2020, Piplsay 2020, Power Retail 2020, Sourcing Journal 2020, Supermarket News 2020

* Grocery deliveries are free for orders over $35.

Parler, a social media platform on a mission to replace Twitter, gained traction this summer then took off like a rocket after the election.

• In early November, the Parler app owned the #1 spot in the Android and iOS marketplaces, as high profile conservatives encouraged their followers to join.
• As of mid-November, Parler has roughly 8 million users. Twitter has 330 million, Facebook 3 billion.
• Parler activity increase 20X in November.
• Parler accounts with the most followers include Sean Hannity, Ted Cruz and Team Trump.
• The platform says it is different because it lets users, “Speak freely and express yourself openly, without fear of being ’deplatformed’ for your views.” The company’s CEO highlights that they have no fact checkers. (In an ironic twist, the platform is now combatting viral posts incorrectly stating George Soros owns it.)
• From a consumer perspective, Parler works similarly to Twitter, but with slightly different lingo.
• Parler is establishing a group of “Verified Influencers.” Advertisers can make promotional deals with them and Parler takes a percentage.
• There is no way to buy advertising “space” on Parler.

It is not clear whether Parler will continue to gain steam as we move beyond the US election.

Sources: Business Insider 2020, Lexology 2020, MSNBC 2020, Newsweek 2020, Wired 2020

Immersive online shopping experiences include augmented reality (AR) that allows consumers to engage deeply with items through a seamless combination of real world and digital elements.

The majority of shoppers want to touch, try on and interact with a product before buying it. At the same time, 48% of Americans don’t want to go to brick and mortar stores right now for safety reasons. Immersive shopping fulfills both needs, significantly increasing purchases. Additionally, consumers say AR enhances their connection to brands that use it.

Shoppers’ favorite immersive experiences are spinning products through 360 degrees, seeing items in real life environments, and virtually trying on make-up and clothes. All three have a stronger influence on purchase decisions than consumer ratings and reviews.

Heavy users of AR are exactly who you imagine (young, affluent, committed online buyers.) However, 72% of consumers are aware of augmented reality, and 40% have already used it at least once while shopping.

Roughly two-thirds of leading brands are investing in immersive experiences. Noteworthy examples include Ulta Beauty’s GLAMLab app for virtually trying on make-up and Francesco Rinaldi’s AR package label that delivers their product story when scanned with the brand’s app.

Sources: Accenture 2020, Forbes 2020, Martechseries 2020

Reddit used to be the wild west of social media. Companies ventured there at their own risk, often only to quit after being mercilessly mocked. However, smart brands have recently found ways to successfully engage on this quirky, powerful platform.

Reddit predominantly attracts young, affluent males, a hard-to-reach and desirable target market. Plus, it has 430 MM monthly active users—up 30% vs year ago—making it larger than both Twitter and Pinterest.

In a nutshell, brands are succeeding on reddit by acting like redditors (as community members are called.) These companies mock themselves, jump on cutting-edge trends, authentically participate in special-interest communities, and show up raw and unpolished. Jimmy John’s, Netflix and BarkBox are prime examples of how to succeed on the site.

Reddit is committed to helping brands integrate into their community. They have established a team dedicated to bringing companies on board by sharing pro tips for success.

Sources: Digital Market News 2020, The Drum 2020, Oberlo 2020