The way companies communicate with their customers is changing drastically, and Facebook’s head of Messenger says his company’s app creates a space for them to have a better dialogue. David Marcus joined Cheddar CEO Jon Steinberg from the WPP Stream conference in Ojai, California Friday. He points out that no one ever seems to call companies anymore. Not only is the process tedious, he says, but it’s not the way clients prefer to communicate. Marcus thinks Messenger is a more viable and effective option than even traditional texting. This push for consumers and companies to communicate via Messenger, which was created in 2011, comes at a time where communication apps are on the rise. Data research firm Statista projects that by 2019 2.19 billion people will be using mobile phone messaging. Marcus said in September that Facebook Messenger had 1.3 billion active users every month. The company’s other product, WhatsApp, has over 1 billion daily users on the platform. According to Statista, WhatsApp is the most popular option worldwide, and Messenger ranks #3. Marcus argued that the number of people choosing to communicate via Messenger continues to increase. “As a result [the app] becomes a great platform for businesses as well,” he said. He points to a survey Facebook conducted found that over 64 percent of people across demographics would prefer to communicate with a brand via a platform like Messenger. But there is a generational difference. A study by Goldman Sachs found that 34 percent of millennials like a brand more when it uses social media, but that number drops to 16 percent in individuals over 36. Facebook has sought to monetize Messenger through advertising. “We have ‘Click to Messenger’ ads … you can buy ads that direct people to opening more conversations with your brands inside of Messenger.” Integrating a system where brands and consumers can increase communication is reminiscent of Facebook’s active advertisement strategy. The tech behemoth one of the two dominant players in the advertising industry -- the other being Google. It rules display advertising with a projected market share of 39 percent this year and revenues at $16.33 billion, according to eMarketer.

Share:
More In Business
Summer Travel Demand Surges
Peer Bueller, COO and CFO of Kayak, joins Cheddar News to discuss the surge in summer travel demand and how travelers can save.
How To Raise Kids On A Tight Budget
The number of births in the U.S. increased last year for the first time in seven years. According to a new federal report, about 3.6 million babies were born in 2021, only about a 1% increase from 2020. Ted Rossman, a senior industry analyst for creditcards.com, joined Cheddar's Opening Bell to discuss why the pandemic baby boom was more like a baby bust, and how to raise kids while on a tight budget.
Drama Heightens as Musk Deal Looms Over Twitter Shareholder Meeting
Dan Ives, Managing Director of Equity Research at Wedbush Securities, joins Cheddar News' Closing Bell, where he provides his insight on what Elon Musk's presence means for Twitter, as well as how recent allegations against the Tesla CEO could impact both the social media platform and the EV giant.
Load More