Application Of Houseparty In Marketing
Introduction
In the corporate world, competition is increasing, and firms are shifting from the traditional modes of marketing to digital. Social media is no longer for purposes of entertainment and communication only. Instead, it is used for marketing products. The recent development in social media is the Houseparty which forms the basis of this report. Houseparty refers to a group app that allows the users to video chat. Over the past decade, the technology has grown regarding the number of users. The concept of video chatting in the world of marketing is gaining popularity as it is one of the best ways through which firms can ensure they stay close to their clients and maintain loyalty. Skype, one of the video conferencing apps has been existence for long. However, social media is growing and coming up with designed to meet the needs of the users. Houseparty was launched in 2016, and it is growing. Currently, the app has over 20 million users. Due to its easy accessibility and fun, Houseparty is the perfect tool for firms to connect with their clients through marketing.
Company background
After the release of the app, due to the immidiate success of Houseparty, the creator of the app Ben Rubin found its way by collecting $14 million venture capital, along with the ground network of 1 million daily users; sending on average of 51 minutes a day. “During Southwest festival in 2015, Meerket company’s original live streaming app, went viral because of huge interest in the app, with $14 million in venture capital. As like many Silicon Valley startup, the app faced competitive challenges in mobile streaming against Twitter and Facebook. Ben Rubin CEO and co-founder of new venture of Houseparty best described as an informal way to have group video chats on phones. The app gained its popularity through word of mouth by attracting hundreds and thousands of users by marketing services at colleges and high school in MidWest and South region of USA”. Houseparty recently raised $50 million from leading venture firm Sequoia in comparison with other potential investors. The application has been popular among Generation Z, 60% of the users are under the age of 24, leading to millions of downloads in 6 months. According to the recent statistics nearly 2 million people used the application in a month, that on average, people are opening it 5.5 times a day.
Major milestones since launch
The initial version was released in the App Store on January 13, 2016. Now Houseparty has more than 1 million daily active users. It is currently in the top 200 in the Apple’s US App Store and continues to grow. Demographics and demographic trends for users of the service Target audience – Generation Z (born anywhere from Mid 1990 to Early 2000) which 60% of the total users are under the age of 25.
Features and functionality of the Houseparty for business users
The developers of Houseparty aimed at transforming the world of video chatting. Unlike Facebook and Skype which limits its users regarding the chatting capability, Houseparty allows people to chat simultaneously with up to 8 friends. The process may seem chaotic, but the designers aimed to give the application the ‘party' feel. The app uses a split screen feature to break into various chat boxes. This allows an individual to see all the members of a video chat in real-time. In the case of marketing, firms can use this feature to market their products. This becomes effective when a business aims to explain to the users how a product works and its effectiveness. The process of creating an account with Houseparty is simple. It requires an individual to use a unique username and add a phone number to allow the app to access the contact list.
Once a firm has collected the contact information of their clients, they can video chat with them in case a new product is introduced, and they may be interested in it. After an individual creates an account, he or she is free to develop chat rooms for video calls. The rooms are limited to eight friends. The accessibility of this app makes it ideal marketing tool as it allows customers to share their views regarding a certain product as if they are in the same room. The Privacy Controls of Houseparty Any information submitted to the Houseparty is subject to the company’s private policy. The policy governs the collection and use of information. Once an individual agrees with the terms and conditions of the App, he or she gives consent to the regarding the use and collection of the data which includes its transfer to the USA or any other country for storage and processing.
Houseparty’s services also include private messaging features and interactive elements with other media platforms. For instance, it contains widgets which suggests from Facebook or other social sites to add to the Houseparty contacts. Once an individual uses these widgets, their cookies may affect the way a person chats. The application in this case gives the users privacy control over the personal information they voluntarily transmit online through the chat rooms.
Privacy controls available to users
Although the app contains all kind of security features it is important for the users to make use of the security control setting and lock the chat room and choose the private settings accordingly. However, as an extra privacy feature, House Party gives a “stranger danger” warning if an uninvited user sneaks into the chat. This warning shows that someone’s mutual friend has decided to enter the chat room. Many times, this warning isn’t viewed with too much worry.
Forbidden Content
With social media, mature content is an innate risk. “Sexting” and other types of explicit material are an ever-growing risk in some teenage circles. Although House Party doesn’t necessarily encourage this type of behavior, it can become a potential enabler for risque flirting and dangerous relationships.
Houseparty Algorithm
The Houseparty algorithm controls the order and presentation of posts. This ensures that users only see what is relevant to them. Houseparty aims at centering content on an individual’s friends and contact circle. Therefore, it does not prioritize on messages or posts from businesses. This can be discouraging to businesses which mainly depend on social media for their marketing purposes. In this case, it is essential for firms to create quality content to drive real interactions as well as shares. The most essential element of this app from the business perspective is that it can easily be shared as individuals are allowed to share their experiences trough invite and shre buttons which are all over the app. The process of finding and adding friends to the site and the chat rooms is well built such that it allows the synchronization of contacts. This implies that all friends in the contact list will automatically be added to the Houseparty list. The interesting part of it is the ability to see the friends who are using the application once it has been downloaded. Moreover, the users can see and add the ‘friends of friends’ also known as mutual friends. An individual would think that the little publicity would hinder the performance of Houseparty. However, this is not the case because of the nature of its target audience. The application has developed an organic method just like that of Snapchat and Down to Lunch which only allows the sharing of little information on how the products can be navigated and marketed to other people.
Houseparty Service Content
The content of Houseparty includes graphics, images, audio, video, and music generated or posted. Any content posted either publicly or privately is the responsibility of the person who originated with it. The application is not required to monitor and control the contents posted. Therefore, individuals should rely on the content posted through the application at their own risk. The service content policy of the app states that it does not represent or guarantee the accuracy and truthfulness of the communications posted. In this case, it is also essential to note that one can be exposed to harmful content posted via the application. Also while using the services of the app, it is important to post content which does not impersonate others.
Evaluation of Houseparty as a Marketing Tool
The Benefits of Houseparty
The app is relatively secure since it allows an individual to control pick who they wish to chat with. The rooms also have filters to block out those not explicitly invited to the chat. This helps in preventing unwanted snooping.
Moreover, the accounts are secure since, during the creation of the Houseparty accounts, an individual is required to create a password which he or she uses when logging. The app is also a two-way street. This means that no chat can take place if there is no agreement. Currently, no privacy scandals have been reported. The other advantage of the app which can be of benefit to the marketers is its accessibility. Houseparty is simple to use, and it has a clean interface. There are no technical bugs associated with the app. The frequent updates assist the app in working smoothly. Houseparty holds a rating of 3.4 in the Google Play rating regarding its usability and features. On the business side, the app allows the users to connect with favorite brands with the aim of promoting their house parties. Through the Houseparty, brands can market their products and deliver them to the target audience in a unique way. The application is available for both Android and IOS operating devices. The source of Houseparty's success is the development of an effective model which enables brands to get a cheap method of word of mouth advertising. The parties spark conversations about the type of products delivered by a creative brand and the members are later turned to potential customers. The Houseparty allows the users to interact with brands while entertaining themselves. Through the Hoouseparty campaigns, the users can jump from one stream to another and compare products. Moreover, they can upload media content for example photos and videos for advertising purposes. The marketing department can also create branded content to help in generating product reviews. Additionally, they can configure their pages; send invites, and updates regarding new product development.
Limitations of Houseparty App
Compared to Facebook, the users of Houseparty are only 20 million. This implies that using it as a marketing tool will reach just a few potential consumers. Moreover, when advertising a product in other social media websites, one can create a page for a company and then post photos and videos of the goods from which the users view and give their opinions. This means that many people will see the product at ago compared to the use of Houseparty which is limited only to 8 users.
Security
The app is very secure to an extent, as the “room. that are created for video chat have particular controls that the person can set and choose who precisely they desire o chat with. ”These rooms come with filters to block out anyone not explicitly invited. This prevents eavesdropping and unwanted snooping”. Houseparty has till date no privacy leaks record or scandales, thereby making the user accounts secure. even though you may acquire requests to chat from absolutely everyone, you're loose to disregard those requests and live silent.
