020 3195 5250
hello@thisisselfhood.com
THE IMPORTANCE OF EARLY ADOPTERS: WHAT IS EARLY ADOPTION? (A CASE STUDY)
020 3195 5250
hello@thisisselfhood.com
In January 2018, TikTok had over 50 Million users. Over just one year, the platform underwent what can only be called meteoric growth. By December 18, this figure skyrocketed to 271,188,301, which is a 394.9% growth. As a result, brands such as Chipotle saw an opportunity to invest in a campaign strategy devoted entirely to TikTok. Now, despite the fact TikTok was experiencing significant growth, it was still a substantial risk for Chiptole. This was in part due to the absorbent cost of TikTok campaigns. At the time, the average price of brand takeover ads was $50,000 per day. Moreover, despite TikTok’s growth, they were still trailing behind Instagram who had over 700 Million users and was still leading the US social media market. At that crucial point in time, TikTok represented an early adopters opportunity for Chipotle. Early adopters represent five consumer divisions, also known as adopter categories. Adopter categories segment consumers based on their willingness to try a new product or innovation.
020 3195 5250
hello@thisisselfhood.com
The types are as follows: Innovators Early adopters Early majority Late majority Laggards The terms were initially introduced by sociologist E.M. Rogers in 1962. He developed the diffusion of innovation theory to describe how different ideas and innovations gained popularity. Early adopters represent a unique segment of these categories because they often yield significant rewards when carried out effectively. For instance, Chipotle sought to take advantage of the early stages of TikTok’s growth to further its reputation and capitalise on the innovation of TikTok. We see Chipotle's campaign became one of their most successful social media ventures using this strategy.
020 3195 5250
hello@thisisselfhood.com
Chipotle’s success The first campaign used by Chipotle was the #ChipotleLidFlip challenge. During this campaign, their hashtag garnered more than 230 million views. However, Chipotle didn’t stop there. They gained even more success following their #GuacDance challenge. Fans were encouraged to perform an avocado-themed dance inspired by Dr Jean’s “Guacamole Song” during the run-up to national Avacado day. The challenge became TikTok’s highest performing branded challenge yet. Chiptole received 250,000 video submissions and 430 million video starts in just six days. More importantly, sales of avocado products leapt up as well. On national avocado day, they sold more than 800,000 guacamole sides. As Chipotle has demonstrated, there are several benefits worth keeping in mind for companies looking to stay ahead of the market:
020 3195 5250
hello@thisisselfhood.com
Early Adoption Benefits 1.
Reduced competition: One of the reasons Chipotle could dominate the TikTok market was that it had fewer competitors to compete against. Take a comparison of the number of users TikTok had in late 2018 compared to now. In 2018, they had 271 Million users. Whereas, as of September 21, TikTok users grew to a shocking 1 billion users.
2.
Less marketing expense: Although, as mentioned, the cost of Chiptoles campaign was high. However, considering how marketing costs grow over time, the timing allowed Chipotle to potentially spend less on marketing expenses than we might see now. This is because innovations at the early adopter stage usually lower their marketing cost to attract others to market on their behalf, i.e. through word of mouth. For instance, the cost of a TikTok challenge at the same level as Chiptole can now cost as much as $120,000 because TikTok has gained enough popularity to raise its prices.
020 3195 5250
3.
hello@thisisselfhood.com
More risk, more reward: While there's more risk associated with investing in a company at the early adopter’s phase, the payoff can be seen in long term growth. Growth is almost guaranteed if an early adopter strategy is successful and the company tips into the early majority phase. Companies that spot these opportunities early will gain a solid base that is virtually impossible for newcomers to compete against.
To find out more about the best early adopter get in touch with Selfhood today to book a consultation.
practices,
020 3195 5250
hello@thisisselfhood.com
Contact Us Address:- Soho Works, 2, Television Centre, 101 Wood Lane, London, UK - W12 7FR Landline number:- 020 3195 5250 Email Id:- hello@thisisselfhood.com Website:- https://www.thisisselfhood.com/ Instagram:- https:// www.instagram.com/selfhoodcollective/