Strategic Error Instagram v Tiktok?

'We know you better than you know yourself' has been a mantra for many outstanding marketers. Add AI into the mix and instantly knowing customers better than they know themselves creates a very real, intangible, advantage. However, there is a twist and it is a strategic twist. In years to come, this may be a landmark moment in marketing and AI as we know it. Watch this game of chess unfold between two of the biggest platform companies in the world with HQs on opposite sides of the planet.

Positioning

This is about #Positioning, a key component in any marketing strategy (in fact it's one of the 9 TOPPP SEED components to consider when writing your strategy in a #SOSTAC? Marketing Plan. #Tiktok is positioned as the world's leader in the hugely popular 15" TV entertainment space. Tiktok has now also become the fastest growing social media platform (with 1 Billion active users). It is also a massive #AI engine in two ways: Firstly, its #algorithms learn consumer preferences quickly (including likes, comments, shares and how long they watch each video). Secondly, on the content creator side, the AI helps them to craft viral videos by simplifying editing, suggesting music, hashtags and filters and 'other enhancements that are trending or have been proven popular based on the category' Davis (2019).

'This AI recipe is so effective that experts have cautioned?against TikTok #addiction. Similar to #Facebook and #Instagram users, the average TikTok user spends 52 minutes?per day on the app. In that timeframe, they may watch more than 200 videos, including carefully targeted ads or offers.' Davis 2019

Your Call

Please note that #perceptual maps and #positioning studies can be much more complex than perhaps my over-simplified perceptual map (at the top of the article). I welcome comments that suggest other possible approaches to this complex challenge.

The Strategic Twist

The #strategic twist is this: Instagram content feed was coming from your family, friends and those whom you choose to follow. TikTok's content feed is selected by AI that finds and delivers what you really like (so much so that daily usage is 50+ minutes per session). In fact, it is so good it can be addictive (platform companies are aware of this).

The Positioning Move

So here's the move. Instagram/Meta CEO, Mark #Zuckerberg sensed the trend of: the 15 second popular videos selected by AI and decided he wants to move into this space. He declares in the July 27 2022 Earnings Announcement that: '#Meta Plans to Double the Amount of AI-Recommended Content (ed.: i.e. even accounts you don’t follow) in people’s home feeds.

This was followed by Meta News release July 28 2022: As we continue to improve our AI, we’re seeing the value it provides. After launching a new AI model for recommendations, we saw a 15% increase in watch time in the Reels video player on Facebook. That means more valuable content for people and more advertising potential.?

The Art Of Positioning

Perceptual Maps that show positioning use variables that are important to customers like 'sick v healthy' or 'adult v child/youth' or 'energetic v relaxing' etc. Rarely, if ever, have I seen a production process (AI chosen content v your own network content) as a positioning variable. Perhaps, you might argue, some whiskeys production processes can be important e.g. if the whiskey matures in oak barrels for 20 years. But in this Meta case, are we perhaps effectively looking at 'robots v humans' being a variable? AI selected content (robot) versus your network of humans' content. Or perhaps Tiktok is positioned as an entertainment company while meta/Instagram is still a social media company with a different set of benefits?

Double Twist - Customer Revolt

Loyal Instagram Advocates did not like it. In the last week of July, 230,000 people signed a petition to 'make Instagram Instagram again'. Ultimately they are trying to stop it from TikTok-ifying itself - demanding Insta go back to simply allowing users to share photos with friends. One influencer, Kylie Jenner shared a post with her 360m insta followers - demanding insta revert back to how it was before they inserting much more video and recommended content into people’s home feeds.

?Strategic U-Turn

Instagram chief, Adam Mosseri said: “For the new feed designs, people are frustrated and the usage data isn’t great. So there I think that we need to take a big step back, regroup, and figure out how we want to move forward….?I think we need to take a step back, in terms of the percentage of feed that are recommendations, get better at ranking and recommendations, and then - if and when we do - we can start to grow again.”

Watch this space

It will be interesting to see where this all goes. Watch this space. And listen to our weekly 30 min chat chat - as we'll be watching out for developments.

Industry 5.0

Is this an unlikely example of industry 5.0 where the Triple Ps prevail (People, Planet & Profit) rather than just continually growing advertising revenue opportunities? Where customers drive the strategy, not marketers who just facilitate the conversation and feedback mechanisms? Or will Insta just follow the dollar?

Perhaps the emotional element will prevail? Is it almost nostalgic - old network selected content v AI driven content. Perhaps it would be better not to have raised the issue i.e. not announced the changes? This, however, flies in the face of transparency that we plead for every week in our open, free, flowing, cutting-edge chat about AI, Innovation and Ethics in Marketing and Business in the SOSTAC? Plans Club in clubhouse.

Know Your Customers better than they know themselves?

Perhaps Instagram knew what they wanted (re video clips) but ignored their more fundamental needs (e.g. being part of a group)? Either way, listening to customers is generally a good idea - except with radical innovations like the radio, the personal computer, music headphones all of which were rejected initially by customers.

Perhaps the crunch comes when you ignore customer emotions and let the robots rule?

Please do tell me what you think. This is just my take on what's happening. Somebody, somewhere out there must have seen another perceptual map who can give us, perhaps, better positioning variables? Let's keep the conversation going.

Thanks to Reggie Johnson, MA, APR Kelvin Golding CMktr FCIM FISM FIDM FHEA Neil Kelley Pistachio B. John Bustard Dawn Southgate - we have been discussing this Instagram attempted repositioning in our weekly 30 min chat in the SOSTAC(r) Plans Club in the clubhouse app 3.30pm-4.00pm BST. We will continue to discuss this ongoing positioning battle.

--

References:

Davis J. (2019) The Tik TokStrategy: Using AI Platforms to Take Over the World, Insead Knowledge June 19

Hutchinson, A. (2022) Zuckerberg Says that Meta Plans to Double the Amount of AI-Recommended Content in User Feeds, Social Media Today, July 27?