The next battleground for customer attention
Why platforms like Fortnite, Tiktok could be the attention merchants of the future
Most public company executives have likely never heard of Fortnite or TikTok. Even in cases where they have, they likely appreciate what a big thing these platforms are among kids.
Here’s a recent picture from a couple of young kids dancing at home to a Fortnite concert:
The ‘digital’ concert in question was attended by 10M+ people. And yet, it was hardly an exception. Fortnite is a multi-player gaming platform launched in 2017 that has racked over 100M+ users. Teenagers and young adults are using it for a lot more than just old-fashioned ‘gaming’. I spoke recently to a 28-year old friend who regularly ‘hangs’ out in a Fortnite virtual environment with other friends in Dubai. And he’s hardly an odd exception. Here’s a survey showing how teens regard Fortnite today:
The other platform in question is TikTok. It is a social media platform that has amassed 500 Million monthly active users in just over 4 years. In an era where social was dominated by newsfeed and pictures, it carved its own niche by focusing on short click-baitey Vine-like videos. Watch the video below and you’ll understand the viral nature of the app:
Just like Fortnite, many adults might have never used TikTok but it is actually fast replacing Facebook and Instagram in utility for many young teens and adult. In China, it is being used a lot more uniquely though. Sellers show grocery-store items like ‘oranges’ on TikTok and buyers have the opportunity to instantly order them (and have them delivered) via an in-app purchase. The category is still very small but that is because TikTok has just started focusing on monetizing the app. Like the Facebook of 2008 - this is a distribution opportunity that will likely be ignored by most large corporates for the next 3-5 years. This all the while there is actually lots of low-hanging fruit for companies in terms of brand engagement and customer acquisition. It is hardly a secret that we all continue to spend more and more time on their devices:
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The figure is likely much higher for 13-30 years old who have grown up with a smartphone in their hands. This demographic is actually very valuable for certain industries like car insurance as it garners some of the highest average premiums. And the evidence indicates that these individuals spending more and more time in these new-age platforms. Therefore, developing a partnership strategy for these platforms could be a great opportunity for a major motor insurer.