Tag Archives: advertising

Trends forecast

 

Houdini“I see…no, wait…it’s an ad blocker!”

At the start of the year, our clients typically ask us what we see in the areas of consumer marketing and media…a glance into the crystal ball, as it were.

This past year most of us were focused on enhancing digital outreach. We have seen this area at least double in activity in our campaigns over the past two years, as clients’ desire to customize and measure the impact of their messages grow.  We see no different for the new year.

In short,  “If you ain’t doing it digital, you ain’t doing it right”, as one of our agency creative gurus quipped.  But HOW to keep doing it right is the question.

Rather than reinvent the wheel on this topic we are taking the shameless and easy path, excerpting what “alum/chum” Publicis — the world’s largest ad agency — tells us.  If they don’t know  about this, then no one does.  So, without much ado…

1. Programmatic targeting of content, not just ads.  Programmatic targeting of ads is now very common for brands and advertisers. In 2015, we’ll see a critical mass of publishers begin to leverage behavioral data to programmatically target content to optimize experiences for users on publishers’ sites.  Content will be personalized and specifically aimed at individual consumers on websites and blog pages, similar to the way ads have been targeted until now. Medium-to-large sized publishers will also invest in data management platforms and in-house programmatic resources.

2. Content marketing spend will need to deliver a more measurable ROI impact.  In 2015, we’ll start to see more sophisticated means of measuring the impact of content marketing campaigns, leveraging multi-attribution techniques to understand the downstream impact on conversion caused by these higher-funnel marketing activities. For example, a brand might spend $1 million on a native advertising campaign but not understand to what degree — if any — that investment impacted ROI.

3. A critical mass of merchants will finally optimize their mobile affiliate tracking capabilitiesWhile the browsing experience is now largely optimized for mobile devices, the same cannot be said for tracking of performance campaigns on mobile devices. [In 2015], we can expect to see retailers work continuously to improve conversion tracking and affiliate payouts in order to satisfy the demands of their increasingly mobile publishers.

4. The startup bubble will deflate slightly and result in consolidations of a fragmented adtech startup market.The last few years have seen an avalanche of entrepreneur startup companies, many focusing on the adtech space. While this has resulted in a great deal of innovation — publishers and advertisers have benefited from a wealth of choices for optimizing their ad spend — we’ll start to see this slow down as some of these companies struggle to raise successive rounds of funding.

5. Point solutions will struggle, and clients will shift their desire to want to work with more full-funnel marketing suitesIn a similar vein, some adtech companies offering point solutions will also start to struggle, as an overwhelmed publisher and advertiser community will prefer to work with fewer partners, opting for ad tech companies offering full-funnel marketing suites. This likely will result in further consolidations of the fragmented adtech market, resulting in stronger conglomerates offering their customers a number of key services combined.

6. Publishers will develop sophisticated in-house capabilities for behaviorally programmatic targeting of premium advertising. Historically, publishers have worked with ad networks and other programmatic adtech partners to outsource their programmatic ad targeting. However, in 2014, a number of larger publishers started to bring this capability in-house, and invest in infrastructure to manage their audience data, such as data management platforms.

7. Ad blockers will become as big of a problem in 2015 as “viewability” was in 2014. The increasing technical sophistication of the adtech market and the increasing demands on accountability by advertisers saw ‘viewability’ become a dominant theme in 2014. Technologies that can filter out automated bot traffic and determine if a human truthfully saw an ad are regularly used now despite it reducing impression metrics significantly. This movement will continue in 2015, with attention turned towards ad blocker software.

Ad blockers (in the form of toolbars and browser extensions) have quietly gained popularity by users wanting a faster, ad-free browsing experience. However, a little-known fact about these ad blocker companies is that they monetize by charging ad companies to let their ads bypass the blocking software. While a marginal problem in the early days, the popularity of these ad blockers means that ad revenues for publishers are impacted; on average about 20 percent, though up to 50 percent for publishers with a tech-savvy readership.

In 2015, we will see a variety of solutions emerge on the market, offering various experiences around user-driven personalization of advertising. (Credit:  Publicis Alum Group, via LinkedIn.)

 

 

Advertisements

Mislabeling and other misdemeanors

Not enough Wonderfulness in the product
Not enough Wonderfulness?

This week “Big Red” (Coca-Cola) took a beating in the Supreme Court from no other than “little red” or  (P♥M Wonderful) about juice that contained a lot less pomegranate than was claimed.  (You can read more about this case in the link below )

We admit we side with “David” here:  the husband-and-wife agribusiness team who took a strange fruit that was a real mess to eat and transformed it into a convenient juice favorite (becoming billionaires in the process, of course.)  “Goliath” then comes along and taps into the wonderfulness.products_pom_blueberry_product_detail

This case takes us back to that powerful feeling as young AEs on “Big Blue” (Pepsi) business whenever we got a chance to bash “Big Red.”   We even helped our clients host an annual event for this very purpose, bringing in the beefiest DSRs for a boozy (Cuba Libres, anyone?) contest with a prize for whoever could smash a Coke vending machine with a sledgehammer the fastest.  (Note this was post-Mad Men era…but obviously not too far ahead of Cro-Magnon Man.)

While the verdict is still out on how the potentially-landmark P♥M vs. Coke case will ultimately affect labeling, we marketers always look at these with great interest and no small amount of fear.

We’ve posted previously about how we can squeeze through the legal gates with what we say to help our client’s product stand apart.  On the flip side, we also mentioned how the once-magical term “natural” is now rendered limp from overuse.

Both the FDA and  USDA are touchy regarding nutritious claims, so food marketers have always avoided even nebulous statements like “…with plenty of Vitamin C!”  “Plenty” needs to correlate to a specific gram or percentage.

The P♥M folks did their homework, though, spending millions on scientific and consumer research to prove that pomegranates were really a nutritional powerhouse.  Absent this kind of support, copywriters have been forced to resort to colorful but unmeasurable terms such as “Chock-full!”.

In summary, the key marketing lesson here is that while smaller brands may fear mislabeling mistakes the most, typically it’s #1 who gets smashed with the sledgehammer.

(Read more re P♥M vs. Coke here)

 

 

 

“Not your father’s” marketing trends

Could it be 25 years already that the TV ad spot  “This is Not Your Father’s Oldsmobile” (see video below, starring the still-slender William Shatner) became an instant classic?!  The catchy phrase was quickly adopted in any context (“This is not your father’s whatever”) reflecting the gestalt of the era.  In other words:  things had changed…

Yet perhaps the change mantra has never been so applicable as in marketing today.  The game has changed, and for many reasons.  To commemorate the New year, below are some of the key ones we see:  the trends we see coming at us less like an Olds and more like a Corvette:

  1. CONSUMER AS CREATOR.  God forbid you asked the customer to help develop your product!  You only dared came out with it after exhaustive research, branding and budgeting.  In today’s era of crowd funding and social signals  (“Like”, “Follow”, etc),  consumers want to share in the creative process.
  2. CALLS TO ACTION VS. CAMPAIGNS.  Used to be you planned a nice and orderly campaign months in advance and ran it on the media schedule you chose.  Today, you need to communicate with your customer all the time:  they pick the time they want to receive your (timely and relevant) message.
  3. MOBILE MATTERS.  It’s all about the smartphone now.  If you don’t have a mobile app you lose cred with consumers, period.
  4. SOCIAL STRATEGY SMARTS.  Before, getting your company name or product up on Google was enough.  Now, with tighter content controls, search engine optimization (SEO) has become quite a science.  With SE recognition of complete questions instead of just keywords,  this provides more opportunity for capturing them (the good news), but you have to keep working at it.
  5. INBOUND ABOUNDS.  It’s not about pushing your product out the door any more.  Attracting customers by the online content you create and the value your company provides is the all-important pull strategy that builds long-term loyalty.
  6. OMNICHANNEL SURFING.  Back in the day, it was solely the bricks & mortar  that counted.  Today, you may still want to get them in the store but the outreach now involves additional platforms, all working together to achieve “omnichannel”, or seamless shopping experience for the customer. (We’ve posted about this trend a few times, so please check out the topics on right)
  7. B2B SPECIALTY.  More than at any other time, business-to-business marketing is becoming a recognized and respected specialization.  Helping businesses do business better is critical in these times of reduced resources, higher costs, aggressive competitors and demanding consumers.

Mad over metrics, or looking for stuff where the light is better

English: John Wanamaker
Smarter than Don Draper?

Consider this statement from a renowned retailer:

“…Another experience that goes largely in ordinary advertising is the waste of money.  There have been many calculations concerning the vast sums of money expended upon advertising in this country.  I do not recall what their magnitude is, but the figures compiled by observers are really astounding.   I think if we could manage to analyze that expenditure…we would find that a vast percentage of it, probably one-half, is entirely wasted…”
 

Was this WalMart’s lament at the last shareholder meeting?  Or,  perhaps JCP’s excuse for its continuing doldrums?  Neither, dear reader.  It was part of an industry speech by none other than John Wanamaker (pictured left), founder of the late, great Wanamaker’s department store, in…1898.

100+ years later, the issue still hounds marketers, albeit pared to the more sound-bitey:  “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” 

When Wanamaker wailed about advertising, the term “marketing metrics” was unheard of.   There was no TV, of course, and “social networking” meant getting together for tea with your neighbor.

Even more than half a century later, in the 1960s (the Mad Men days) there were only three TV networks and three national news magazines to consider.  With limited venues and a high captive audience, advertising was, as a “Don Draper” type quipped: “like shooting fish in a barrel.”

Those halcyon days are now clearly over, as expanded communication venues and, especially, social media, provide an audience of mega-millions.  Expectations are high:  there are so many more fish to shoot!

However, this has created a climate where marketers wish to quantify everything.  How many Followers, Pokes, or Likes did we get today?  How many unique viewers visited the site?  For how long were they engaged?  What was the conversion rate of the ad?  There is barely a company today not pondering their metrics, or, how to measure the effectiveness of their PR, advertising, social media, and myriad other marketing activities.

There is even a new crop of “consultants to consultants” looking to advise agencies how to win big by “generating metric reports that dazzle!”, or by offering “100 Ways to Keep Clients Happy and Budgets Intact” (without having to bribe them with booze, drugs, or game tickets, we assume…)

One such group recently advised to be careful how we use nouns vs. verbs in our metrics reports, as they can dramatically “affect the effect.”  No wonder self-professed “AdHo” George Parker, a veteran of the already-waning Mad Men era in the 70s, says we’ve all gone mad over metrics.

He claims we often measure things without considering what it is, exactly, we are looking for.   And if we were to find it, what does it all mean?  He clarifies:  “It’s like a guy losing his car keys in the garage but going into the living room to look for them because the light is better there.”

This “looking for stuff where the light is better” trend rings true.  Truth is, marketing programs should be measured, but not all marketers should or know how to do the math. (Actually, the only old math they need to memorize is:  REACH + FREQUENCY = IMPACT.  It still holds true today.)

Never having made it to Statistics 101 in college, they certainly don’t have time to deal with it now.  They just want a good story to sell.  “Put up a realistic number that makes us look good”  they beg, preparing the slides for the upcoming stockholders meeting.

On the other side, we have recently slogged through an extensive (and expensive) report by a respected university. It contained complex, multi-page regression analyses to help justify the client’s advertising campaign. (People, it’s just advertising!)

Of course, there’s no harm in searching for brightness where the light is dim.  If, say, your post-campaign survey reveals 40% of consumers “seldom” buy your product and 20% “sometimes” do, then you can probably safely say 60% are “frequent purchasers.”  We used to call this a minor statistical enhancement.  Now, it’s metrics.

In summary, good advertising is part science, part art, and lots faith.  There are things that we can’t put an immediate number to, but we just know are right.

They sound and feel right, and we get the right reaction to it.  That’s the emotion “metric” the best ad-makers have always gone for.

John Wanamaker knew that, and that’s why, grumbling, he kept up his ad spending to build one of the most successful retail chains in the world.

SPECIAL SERIES-Post #2: Aceing ACV

This is the second of a “back to basics” review series  of the marketing process.  For series introduction, see 4/5 post

Now that your multi-element marketing plan is in place, you need to take it on the road.  The question is: where to?  

Allocating marketing dollars is one equation everyone struggles with at some point.  As one famous ad man quipped:  “Half of all advertising spending is wasted.  The key is knowing which half.”

We were gratified for the recent opinion of a blogmaster (those who write these for a living:  the easy life!) that echoed what we wrote about on 11/11 and then again on 3/10 about…fishing.  Daniel Scocco (daniel@dailyblogtips.com) guest-posted on Copyblogger, and we paraphrase that here because it is worth repeating…ad nauseum:

Go where the fish are!

What is the most important factor you need to have if you want to go fishing?
Most people will say the fishing rod. Others will say the bait, or a boat. Interestingly enough, they are all wrong.  The most important element of the equation is the presence of lots of fish.  If you have a lake full of fish but don’t have a fishing rod or bait, you can probably still improvise something that would let you enjoy a fish dinner tonight.  But no matter how great your bait or how cutting-edge your equipment, if there aren’t any fish, there’s no fish dinner…That means…[you need to] target known customers willing to spend money.

 

Remember that we wrote about on 3/10 how ACV — all-commodity volume — is the retail segment keystone because it measures actual sales activity, not just population.  When you target a market with high ACV, you simply have a larger number to bite your bait.  After all, 1% of  millions is something.
 
 Yet there are times when marketers want to go to smaller ponds.  Fact is, high-ACV (“A” markets) such as Los Angeles, Chicago etc, are expensive.  Media costs and, in fact, costs to implement promotional programs there are typically much higher than in B or C markets.
If your budget does not allow this, or if you have a very specific product niche, then focusing on a smaller market makes sense.  But here the key is to know the specific demographic of your target to ensure no wasted dollars.
We urge you to invest in market research (primary and secondary), scanner data and psychographic studies that tell you all about your target.
Segmenting the market is the key to success today, and one that giants like Unilever have down pat with their excellent studies on ethnic and generational groups.  Then, you can tailor your message accordingly.
In short,  if you want to be a successful fisherman today, you’ve got to ace ACV.
NEXT WEEK:   The retailer’s angle…