December 30, 2019

Key Things to Consider When Strategising for 2020

We’re at the end of 2019 and what an eventful year it has been! Especially in social media’s realm, with hundreds of updates and changes to platform rules and regs. Although 2020 is right around the corner, there’s still time to revisit social media strategies to boost performance next year. With this in mind, we discuss notable predictions from social experts and thought leaders to gauge how best to move forward.

Granted, were basing our advice on the predictions we feel to be most likely. However, we’ll know more as the year starts to pan out, so stay tuned for blog updates on how best to revise marketing strategies. Anyhow, Emarketer suggests social media is currently used by 90.4% of Millennials, 77.5% of Gen X and 48.2% of Baby Boomers. Meaning your demographic is on social, but what current predictions might hint on how best to target them?

Our top 2020 predictions

The New York Times hints Facebook’s planning to integrate messaging functionalities on Messenger, Instagram and WhatsApp. Enabling users to communicate between the apps, whilst integrating cross-posting via their Stories tools. This broadens the opportunities for marketers to connect quicker and easier with their audience.

Furthermore, Instagram look to maintain its current course with focus on user health and wellbeing via ‘like hiding’. This looks set in stone as an official feature for 2020. Coupled with a further shift towards monetisation, influencer marketing will continue to dominate in the new year. Businesses aught to improve their marketing spend on influencer marketing as it can be cheaper and more effective than running paid ads. So moving forward, marketers should look to work with multiple smaller influencers, as opposed to singular celebrities.

SocialMediaToday offers realistic views on AR, VR and their impact on socials’ future. AR filters like on Snapchat are gaining popularity, with digital overlays offering creative alternatives to standard content, upping user engagement. Alternatively, VR looks to be the future of social interaction, with Facebook already heavily investing in Oculus. It’s safe to say their’s plenty of potential to gear a marketing strategy towards these trends in 2020.

Happy New Year from the Momentum Social team. Contact us with any questions, we hope our insight kick-starts your 2020!

November 27, 2019

Your Twitter account could be deleted!

You heard us right, Twitter is preparing to terminate thousands of accounts. Those that have been inactive for six months or more will be deleted. Did you know, there’s over 14M TW users in the UK? (OMNICORE) Unfortunately for some, they’ll log back on after a period of absence to discover the worst. Lucky for you, we’ll avoid any trauma with a well timed prompt. So if you’ve not logged-on in a while, we suggest you do so!

11/12/19

You have until the 11th December to prove your account active. After that, your beloved thread of genius memes and unparalleled wisdom will be lost forever. Including users who haven’t posted due to death, as well as any other related inactivity. Oddly enough, it’s the first time TW has done something like this. But they explain it’s down to the new privacy settings. Inactive accounts can’t accept them, going against regulations. So the new change makes sense, seen as their credibility improves by removing dormant accounts. This may well properly reflect users’ legit followers, improving engagement metrics.

What happens next?

Given a whole bunch of accounts will be deleted, this frees up that unattainable username you’ve been after since the beginning. Try your luck after the 11th cut-off, you never know! On the other hand, the firm states future plans include deleting active accounts. A step-up from current proceedings which looks to filter out non-human users. Apparently there’s various ways to gauge genuine human interaction, so we’ll see how this unfolds.

Seen as though inactivity is currently based on log-ins, and not posting or replying etc., bot accounts that auto-tweet are also at risk of being deleted. That’s unless account owners log-in before December 11th. We hope this covers everything and saves you any hassle!

Our finger’s always on the social pulse to keep you up to speed with the latest updates. Contact our team for more info.

October 31, 2019

The Highs and Lows of Influencer Marketing

Using influencer marketing to showcase a product or service can be high-risk, high-reward. Certainly if a demographic is niche. Apparently, 49% of consumers depend on influencer recommendations (DMI). So what better way to advertise its capabilities, than to capture it in real-time, posting to thousands of followers? Momentum manage the entire influencer process, with no reliance on third parties. With our experience, we’d like to highlight some highs and lows, discussing real-world cases.

Nike’s what’s inside Nike Air VaporMax?

https://bit.ly/2N5H6aN

Nike take showcasing a product’s functions to the next level. They collaborate with established YouTube channel, ‘What’s Inside?’. Creating a series of sponsored videos to really show what the product’s made of. This let potential consumers see inside and out, thereon influencing purchasing decisions. After all, quality and durability are key factors in buying sporting goods. The video campaign did very well, generating 6M views and 47k likes. It successfully helped Nike create hype along the product range. An example of successful influencer marketing with healthy RIO. However, it’s not all sunshine and rainbows…

Man City’s attendance & atmospheric booster

https://dailym.ai/2BXtpnW

Although Nike saw success, Man City’s recent efforts fell short. They sought the help of influencers to boost the attendance and atmosphere of their European home games. They drew some less known teams in the Champions League this season. Naturally, this is an attempt to improve ticket sales and the overall experience. However, their agency posted something City were quick to distance from, falling short of the club’s social standards. The brief displayed above with the accompanying post were created without their permission. A lesson learnt in that taking initiative isn’t always the right call. High-profile brands rely on professionalism at every stage, something that we at Momentum are extremely proud of.

Both cases highlight the highs and lows, showing that influencer marketing is high-risk, high-reward. When done right, the benefits outweigh the drawbacks. We guarantee ROI, proven with our growing portfolio of global brands, and track-record of successes. We’d love to discuss your ideas, so please get in touch.

For all queries regarding influencer campaigns, contact our team, we’d love to hear from you!

September 30, 2019

Social media likes; the end of an era?

Recently, we highlighted noteworthy feature updates and their impact on users. A common trend surrounds likes and their usage. Likes are a hot topic! Platforms are reviewing the metric in terms of its benefits and drawbacks. In fact, Instagram intends to scrap likes for ‘Saves’, regardless of the platform getting 4.2B likes a day (SproutSocial). So in this article, we’ll discuss these impacts in detail, keeping your finger on the social pulse.

Benefits of likes

CEO Mark Zuckerberg makes his view clear during a public Q&A. Presenting button semantics, he states likes as a force for good. However, giving people various ways to express emotion and reaction is something to consider. This came to fruition with different ways to react on FB as emojis. Meaning users can comfortably express their reaction, without the negatives associated with disliking content. Additionally, likes present an effective metric for marketers to measure content quality, when reporting engagement analytics. The question is, can they be a bad thing?

Drawbacks of likes – A hinderance?

It could be the end of an era for our beloved like metric. A mounting, but inconclusive body of research suggests they have a direct impact on the self-esteem and wellness of their users. With mental health in question, is the like button now a force for bad? The validity of recent studies is questionable, but they point to poor body image, sleeping habits and increased depression. Coupled with FB’s struggles to police hateful content, they’re taking steps to address the issue. Similarly to IG’s like hiding, FB now follow suit. They’re testing hiding the number of likes, as well as video views in Australia. it’s yet to be confirmed if they’ll carry the test out internationally.

With like hiding as the platforms’ key focus, we can assume likes have stirred up quite the storm. Primarily, a force for bad which will see replacements in the form of ‘Saves’ and other variants. The impact on the user will be beneficial. However, less can be said for influencers who rely on the metric to make a living.

Stay ahead of the curve with the latest news. For all queries and suggestions, don’t hesitate to contact the Momentum Social team.

September 2, 2019

Developing restaurants online with Momentum Social

Driving restaurants into the digital era.

Online platforms are a haven for gaining new custom. After all, the hospitality industry relies on its customer base. In fact, Monetate suggests over 1B UK restaurant visits are customers influenced online. Additionally, 84% trust online reviews as much as word-of-mouth for dining options (Bright Local). With this in mind restaurants must utilise a socials potential in strategic ways. Coupling a dish’s image with a positive review and posting testimonials are great ways to generate the all-important awareness!

But that is only the start. As social media becomes more and more saturated, it’s crucial for your restaurant to not only stand out, but to thrive! So let’s improve yours shall we? Here we take a look at some of the the key ingredients to a tasty social media presence:

Best practices; beginning your digital journey.

It starts with choosing the social platforms that best suit your goals. Typically to attract new custom, produce repeat business and establish a good reputation. There is however a big difference in having a social presence, and utilising a social presence. Luckily for you, Momentum offer a Michelin-starred service, so here’s some key tips:

Post visually appealing content – A restaurant’s most effective CTA is food/drink. Professional photography and videography is key to this and will help posts stand out in the newsfeed
Post promotional offers – Highlighting exclusive online codes & vouchers is a great way to gain repeat custom. This can be done with eye-catching graphics and video
Use Facebook’s online booking service – Your new customers can book a table via the platform, cutting out much of the booking process
Utilise a chatbot – Chatbots are the digital assistant you never knew you needed. This will likely be your customer’s first point of contact, helping stay on top of bookings
Highlight the customer experience – Posting good reviews and hygiene ratings will create transparency, enticing new custom. Making a content plan and schedule important

A Michelin-starred service with Momentum Social.

Our aim is to generate online awareness for restaurants. Using social media, we will create a local database of new and existing customers with unlimited outreach. This will prompt healthy business growth. To do this we will compile a thorough, detailed strategy unique to your targets and customers.

What’s more? We will utilise our expertise to deliver a tiered package of crucial marketing techniques. Such as creative design, content creation, social strategy, chatbots and community management. Designed to capture, retain and repeat potential custom. These techniques are tried, tested and likely to deliver maximum ROI. So what are you waiting for…

Is your restaurant coasting, waiting to be driven into the digital era? If you’ve a project to discuss, or any queries on our package, please get in touch with our team.

January 3, 2019

Building your brand presence through social media

Getting the branding right when managing your social media campaigns is key. Messaging across social platforms with focussed, clear and relatable content ensures it resonates with an audience. Doing so consistently builds trust with them. A by-product of brand trust is more engagement, followers, traffic, leads and sales. Therefore, we discuss the ways and benefits of effectively building brand presence through social. Any queries? Don’t hesitate to get in touch!

Consistency in your voice & creative

The first step to getting your branding right is a consistent messaging voice. This includes the wording and images used on your profiles, as well as post and ad copies. They should all follow one distinct voice. This means your writing style should remain similar across all posts on your social channels. Be it conventional, formal, or a bit of both; pick a style and stick to it in your campaigns. Tone of voice heavily reflects your brand’s image!

Similarly, consistent visuals are important. Stick to your brand’s primary, secondary and tertiary colour scheme. Additionally, use the same fonts in all creative. This will help consumers identify your business through its colour scheme. Regardless of visible logos. As a result, brand awareness improves making it more dependable.

Brand your logo & ensure content is relevant

Visual content is imperative on social media. Images and videos whether short or long-form generate great engagement. Therefore, to get the branding right, label this content with your logo. Using a logo strengthens your social presence and boosts brand awareness. However, if you’re yet to develop a logo, contact Momentum Social. Our in-house experts are well equipped to take your ideas from rendering to reality!

Furthermore, build brand presence by sticking to a topic theme that represents your business. Relevancy is paramount; ensure the content reflects your product/service and gives the audience value. This helps to attract the right customers and develop relationships.

These are a few ways and benefits of building brand presence. Consistency in messaging voice and visual creative is important. Lastly, branding visual content with a logo and ensuring posts are relevant, whilst representing your business is key for success; generating awareness, engagement and developing customer relationships.

Stay tuned, keep up to date with the latest social news. Contact the Momentum Social team for more information.

December 27, 2018

Instagram’s feature update sparks outrage!

A day to forget for Instagram? The app as we know it could be changing. Today, they began rolling out an update. However this update changes vertical scrolling to horizontal swiping, much like stories. Although the rollout didn’t effect everyone, those effected went over to Twitter to vent their displeasure. Therefore let’s analyse the feature and see what all the ruckus is about. Contact the Momentum Social team for more information!

Update information

TechCrunch were the first to report the app’s redesign in October; testing the feature internally on the app’s explorer page. However, Instagram ended up rolling out the feature today to millions of users. This was unintentional with head of product Adam Mosseri apologising on Twitter saying “this was supposed to be a very small test but we went broader than expected”.

Update outcry

Today saw Instagram expand the feature to the main feed, effecting more users than originally planned. Users with the update report being unable to scroll the main feed, as per the design since its launch. Instead, they were only able to swipe left and right through images, as opposed to up and down. Following suit of prior Instagram updates, the change sparks outrage as public outcry unfolds on Twitter. Moreover, Instagram hasn’t announced the changes publicly, hinting that the rollout has been one big mishap.

The comments on Twitter appear as complaints and demands to revert back to the old design. The trend #instagramupdate took place with mostly negative comments. It’s safe to say the update was unwelcome, likening it to Tinder. It was live for roughly an hour before reverting back to the old design due to the backlash it received. It’s suggested the reason for the redesign is to stop endless scrolling, promoting tap and examine on posts. At least they listened to their users with a quick roll back!

Stay tuned for more social media updates. Get in touch, contact the Momentum Social team.

December 24, 2018

Strategising for 2019; digital marketing errors to avoid

With 2019 nearing, digital marketers are underway with strategic planning. We should be auditing current analytics to get a clear picture on the best way forward. However marketers often make critical errors in planning their strategy, leading them astray from desirable metrics. Therefore we’re going to highlight three of the most common errors made whilst strategising and how to avoid them. Let’s get into it!

2019 strategising errors - Momentum Social

Uncertain goals

Goal uncertainty’s a critical error. Clear strategic direction needs SMART goals. Are they specific, measurable, achievable, realistic and timely to business aims? Audit competitor behaviour, see what they’re doing. Additionally, really think about which social channels can best market the brand. Image led services like hairdressing suit Instagram, as opposed to LinkedIn, for example. Therefore, define clear goals to shoot effective tactics toward business aims.

Unclear target audiences

Assuming a demographic will take an interest in a brand’s products/services is a costly error. Social platforms offer analytics, showing who the target market is, their location and content needs. The success of a campaign relies on understanding an audience, targeting them with relevant, reliable content. As a result, narrowing the focus ensures money and time’s well spent on ads. This engages the right people at the right time to deliver value.

Rushed results & data confusion errors

Expecting immediate results via online marketing is another common error. Marketers often ditch campaigns if they don’t see fast results. The digital marketing industry is fast and ever growing. However, audiences are human and take time to properly engage. In addition, changing algorithms make it so not everyone will see the content. Therefore, rushing results is an error that can be helped with consistency across multiple points of exposure, with a little bit of patience!

Furthermore, it’s easy to get bogged down and confused given all the data available with platform analytics. Confusion around that data lessens as we figure out what we’re looking at and what to use it for. Firstly, figure out what’s relevant. Impressions? Video views? This should be in line with set goals. In turn, forming them into KPI’s, which shows exactly what’s working and what isn’t.

These three marketing errors are common. They can be avoided in strategic planning if outreach efforts are in line with set goals and business aims. Additionally, narrowing an audience focus ensures money and time’s well spent engaging the right people. Rushed results can be limited with consistent content exposure and a little patience. Lastly, data confusion can be helped by forming relevant KPI’s.

Stay tuned for more strategic content. Fancy a strategy chat ahead of 2019? Contact the Momentum Social team.

Content marketing trends featured - Momentum Social

November 29, 2018

Content marketing trends to watch out for in 2019

Online marketing is always changing. Platforms’ use fluctuate, along with their popularity. However, delivering content across socials remains a key strategy to achieve brand awareness and conversion rates. In fact, Technavio suggests the content marketing industry will be worth $400bn by 2021. Therefore, as content marketing trends advance, we discuss the major trends that will shape how brands and consumers engage content in 2019.

Content strategy will be vital

Strategic content marketing is powerful. However, it requires goal orientation. The CMI suggests 65% of the most successful content marketers have a documented strategy. Therefore, a strong strategy means marketing relatable content; goals need to be in place to engage the audience. Marketing content in line with a specific goal is important. Additionally, meeting a goal like SEO or lead generation with effective strategies creates engaging content. Form effective strategies by mining audit data, double down on what works and refine what doesn’t.

Customer success; the new frontier?

A new avenue of content marketing emerges. Customer success is the way brands assist consumers to get the most value out of their products and services. A trend that focusses personalisation, looking to create deeper relationships by encouraging conversation; promoting word to mouth awareness. However, this depends on reliable, accurate content depicting product/service use. This achieves transparency and brand loyalty.

A change in the marketing funnel

Although the current funnel works, high-quality content will look to replace the traditional funnel with a more sustainable alternative. This being an on-going cycle, prioritising continuing engagement over transactional relationships. Continuing engagement will nurture post-sale relationships. As well as increasing the likelihood of repeat sale. Brand loyalty and positive recommendations are a by-product of maintaining these relations.

Content marketing remains key next year. Adapting to new trends is essential for success in 2019. In addition, a goal orientated strategy is vital. Focussing on customer success, building relationships and encouraging conversations will boost awareness. Finally, watch out for a change in the marketing funnel. Continuing engagement will prioritise over simple sales transactions.

Get ahead of the curve, stay tuned for more online marketing trends. Contact the Momentum Social team for more information.

November 26, 2018

Creating a content strategy for 2019; hints & tips

Social media’s a fast moving industry; keeping up with trends can be difficult. A content strategy going into 2019 requires re-evaluating current strategy, gearing ideas toward engagement and communications. Did you know, the CMI suggests 45% of B2C marketers believe visual content is their most important content type? Creative, striking visuals are a key tip moving forward. In addition to tips, we offer hints on creating an effective content strategy for the New Year.

Use video

Video content gets the most engagement, more so than text or imagery. A first-person video approach using Instagram/stories and Snapchat makes a brand more relatable. Providing a first-hand perspective of your brand veers away from traditional, promotional based content; upping engagement. However, keep videos short as 30s-3m is optimal viewing time.

Quality not quantity

Dishing out loads of content isn’t likely to boost your numbers. It will likely deter consumers; tuning out as there’s too much information to digest. Being purposeful is a top hint heading into 2019. Short, well-timed content with a clear message spurs engagement and reactions. Trend jacking is important, but don’t over do it!

Use appropriate platforms

Just because a platform’s popular, doesn’t mean it best suits your business. Facebook, Instagram and Twitter are effective for B2C marketing; pick and double down on the platforms that offer you the most return. Decide if text, imagery or video will be your primary content type. Then, use data from last year’s audits to see what works and replicate. Revise and alter content as appropriate.

Consider new technologies

New tech will emerge in 2019. It’s important to consider applying them to your social media strategy. For example, implementing a chatbot will improve business functions. Their commercial uses are growing at a rapid rate. Forbes suggests they top the list of 2019’s digital transformations. With this in mind, applying them can improve B2C transactions with speed and instant gratification.

Create a strong content strategy heading into 2019 by auditing and learning your audience. Deliver quality, relatable content either as text, imagery or more importantly, video. Post across appropriate platforms and consider adopting new technologies. Refine what doesn’t work and double down on what does, good luck!

Stay ahead of the curve with #MomentousMondays. Want to discuss content strategy ahead of 2019? Get in touch with the Momentum Social team.

November 20, 2018

Gain social momentum with top marketing tactics!

The New Year’s just around the corner, so it’s worth knowing social tactics that will promote online growth. Marketing online requires creative, engaging content. The CMI suggests content marketing gets three times more leads than paid search advertising. From this, we know relevant content delivers value that results in engagement. Therefore, Momentum offers top marketing tactics to trigger business growth heading into 2019.

Inbound content tactics

Inbound or ‘branded’ content refers to any material that’s created by a brand for its own purposes. Online growth in 2019 means producing quality content that relates to an audience, whilst maintaining communications. Therefore, tactics such as building a social media presence, blog writing and podcasts are sure to boost hub traffic and engagement. In fact, 43% of B2B marketers say blogging is their most important type of content (Social Marketing Industry report). In addition, 17% of marketers plan to add podcasting to their marketing efforts in the next 12 months (HubSpot). Quality inbound content gives the audience something to talk about and a reason to stick around!

Communication tactics

Quality content won’t cut the cake. Conversing and maintaining communications as a result of that content is vital. Community management will usher consumers further along the purchasing funnel. Responding to both positive and negative comments/reviews will improve transparency and brand image. An improved customer journey will increase the likelihood of a sale. In addition, online chats are an effective tactic for 2019. They allow a depth of connectivity that podcasts, emails and webinars cannot. It may also be worth investing in a chatbot as their commercial uses are quickly growing in popularity. Furthermore, giving back to the community through competitions/giveaways creates an organic buzz, generating brand awareness and engagement!

Quality content supported by community management are top tactics heading into 2019. Boost engagement with creative images and videos. Respond properly to all consumer enquiries, whether positive or negative. Add customer testimonials to the hub/site for social proof, enriching the customer journey and increasing the likelihood of a sale! Check out our testimonials here.

Stay tuned for more on social media tactics and marketing strategy. Get in touch with the Momentum Social team for more information.

Insight-led video featured - Momentum Social

November 14, 2018

Insight-led video strategy; understanding an audience

Insight-led video strategy involves learning audiences’ motivations, targeting them with effective, reliable content. Video is essential to content marketing. In fact, over 80% of online marketers use videos. Therefore, gaining insight into an audience’s thoughts and actions is important to deliver engaging and relevant content. With this in mind, we discuss building an insight-led video strategy. If you’d like to discuss the strategy further, get in touch with us here.

Insight-led research

Researching insights beats un-researched assumptions. Knowing an audience means learning their interests, preferences and needs. Insight knowledge then lets us empathise with them. This allows us to produce video campaigns that resonate on an emotional level. In addition, insights show audience activity, which lets us post relevant content in the right place at the right time. Proper research will reduce the guesswork, promoting emotional resonance with them. Therefore, what they’re seeing is relevant and targets their interests, boosting engagement and post reactions.

The steps to strategy success

The first step is to collect primary or secondary market research on audiences’ interests and preferences. Primary research gained first hand will provide authentic, original data. This is possible through focus groups or questionnaires. On the other hand, secondary research that’s already done is easier to gather. However it can be unreliable and may lack validity. Both numbered and written insight data will work, although written data will give more of an in-depth view; usually done through interviews. Analysis is then necessary to find key themes that will provide insights.

The second step is to develop ideas from the data and create sample content; to refine, measure and revise once posted. The way the audience engages and reacts to the content provides valuable insight. These insights can guide future pieces of content, highlighting shortfalls and posts that resonated best with the audience.

An insight-led video strategy will provide valuable insight into audience preferences. Video content is then relevant and more targeted towards their needs. Engagement and reactions are likely to improve as the content resonates with their interests. Remember research is key, whilst creating, refining and measuring posts is important for analysis and future content.

For more information on video and campaign strategy, contact the Momentum social team.

Guest blog work featured - Momentum Social

November 6, 2018

Mobile working; the changing nature of work

The sun is shining; glistening on the wind-struck waves. Thankfully, my big jumper is negating the cold sea breeze. The soothing sounds of waves crashing is easing me through my afternoon. It hits me, the beauty of what I do allows me to work anywhere and everywhere. So long as I have my kit and a decent bit of Wi-Fi. So here I am, blogging my experience whilst looking on to the beautiful south coast, and I’m not alone.

The rise of working remotely

We decided to head down to the wonderful Pevensey Bay in-between Hastings and Eastbourne. As it’s the October half term, it’s a perfect opportunity for a family break away. A well-deserved one at that! So you’re probably wondering, ‘If he’s on holiday, why is he blogging?’ The answer is rather simple. The nature of how we work is changing. The beauty of the Internet is that work, particularly online work means I’m not confined to an office. Nor am I bound to the traditional societal conceptions of the 9-5. Remote, flexible work not only improves my job satisfaction, but my productivity, too. I mean, you’d be lucky to get that view in a corner office, wouldn’t you agree? Heck, I’m inclined to be productive now. Documenting my thoughts even though I’ve got time off, purely for the love of it.

Office vs. remote working

Career perspective is key here. Not all jobs allow you to work flexibly at home or at a desk. But given the option, choosing my own hours and place of work trumps the commute to a 9-5, hands down. In fact, studies suggest more firms are now allowing flexible work than those that don’t. It improves productivity, cuts absences and employee turnover. Additionally, less money’s spent on office space and maintenance. Digital collaboration may replace physical interaction entirely. Video calls do the job well enough. Although it’s not quite the same as a face-to-face meeting, so we’ll see!

Work isn’t necessarily a place anymore; it’s something I do. Mobile work, working flexibly improves my engagement, productivity and job satisfaction. It also benefits my work-life balance and time management. However, it’s not everyone’s cup of tea. It’s viable for some but not all, depending on the circumstances. Enjoy the sunset!

Guest blog contributed by Daniele Santabarbara. Contact the Momentum Social team for more information regarding mobile & flexible work.

November 5, 2018

UK vs. US; tech giants hit with huge digital services tax

Ding ding ding… Round 1. FIGHT! Punches are grazing and guns are blazing as the UK hits American tech giants with a digital services tax. In a punch below the belt, the UK government announces a 2% tax on revenue; as opposed to profits. It’s Hammond vs. Trump as round 1 concludes. Stay tuned as we delve into this week’s latest scrap, we mean, news; that’s newsworthy!

Hammond vs. Trump

Chancellor Philip Hammond kicks off round 2, suggesting the tax applies to profitable tech firms; with global revenues in excess of £500M ($640M). There’s concern these firms book their profits in lower-taxed areas out of the UK. This explains the cause, but is the cause just? He argues digital platforms that deliver search engines; social media and marketplaces actively change lives, society and the economy for the better. However, they pose a threat to the sustainability and fairness of our tax system. Apparently, current rules aren’t keeping pace with changing business models.

Moreover, US tech giants generate a lot of value; appropriate taxes should apply. He proposes it applies to firms such as: Facebook, Twitter, Google, Apple, and Amazon. Trump isn’t going to like that! Although, the levy will only apply to activities UK users participate in, as opposed to sales tax on goods ordered online; as this cost may pass to the consumer. He expects to raise nearly £400M ($512M) per year, with it coming into force April 2020.

UK tax alienating US?

Trump strikes in round 3! Early 2018 saw the European Commission release a 3% tax plan, similar to Hammond’s proposal. It’s feasible to see why Trump could see this as an attack on US business. However, Hammond wants to show British voters he’s doing something about the low taxes these firms currently pay; clamping down on tax avoidance. But at what cost? This runs the risk of alienating US relations in loom of Brexit… not good. In comparison, 2% is better than the 3% the EU is proposing. Still, we can’t imagine it’s going down well!

In the long term, it isn’t possible for these tech giants to keep shuffling money around the world to their advantage. However, despite UK and EU proposals, the chances of a digital services tax coming into play by 2020 in the current state is very low.

Stay ahead of the curve and tune into #MomentousMondays for news that’s newsworthy! Get in touch, contact the Momentum Social team for more information.

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