In this week’s Digital Week in Review: Social media proves to be bad for customer service, 70 million new Facebook shares to hit market at today’s close, and Twitter’s growing national advertising revenue.
Poor Customer Service on Social Media
Customer service inquiries are now more than ever being handled over social media. However, this isn’t necessarily a good thing for consumers. A new study by Sprout Social shows that 80 percent of customer service inquiries go unanswered when conducted through social media. Engagement for customer inquiries through social media has reportedly increased by almost 180 percent. But the average response time is increasing and the bigger the audience, the lower the response rate, which is not great customer service for the consumer.
“This would not be tolerated in traditional channels like phone and email and is not a sustainable practice.”- Sprout Social CEO Justyn Howard
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Another 70 Million Facebook Shares to Hit the Market
At today’s close, another 70 million Facebook shares will be unloaded onto the market, with 27 million coming from the company itself, 41.35 million coming from CEO Mark Zuckerberg and the rest from various stockholders. It is estimated that Zuckerberg will most likely make close to 1 billion dollars. This is Mark Zuckerberg’s first stock sale since Facebook first went public in May 2012. Zuckerberg also plans to donate roughly 1 billion dollars worth of stock to charity.
The proceeds of the company’s 27 million shares with go towards working capital and other corporate purposes.
“The joint bookrunners for the offering will be JPMorgan, Bank of America, Merrill Lynch, Morgan Stanley, and Barclays, and the co-managers will be BNP Paribas, Citigroup, RBC Capital Markets, Credit Suisse, HSBC, Standard Chartered, and Piper Jaffray.”- AllFacebook
Twitter’s National Ad Revenue Expect to Double
Twitter’s national ad revenue is expected to double by 2015. The net share of national digital ad revenue has reached 1 percent in year 2013, up from 0.6 percent in 2012. This growth is expected to continue over the next 2 years, to eventually reach approximately 1.6 percent in 2014 and 2.2 percent in 2015. However, Twitter’s national advertising revenue is still a far cry from Facebook’s 7.4 percent.
Globally Twitter’s ad share is at 0.5 percent and Facebook is at close to 6 percent.
Image Credits: : www.siliconbeat.com, www.emarketer.com