Submitted by Rebecca Lieb on Tue, 2016-05-03 07:09
Digital advertising effectiveness is on the decline and marketers are turning to other forms of marketing to better engage customers during their digital journey.
Content marketing has emerged as something of a savior in the new marketing hierarchy as brands seek alternatives to display advertising that no longer produces tangible business results.
These are the top findings in new research I recently published under the auspices of ScribbleLive and Visually (free download).
The research explores how marketers can build customer-centric marketing strategies that rely more on valuable content and less on paid media buys.
Consumer Attitudes, Data Privacy, and New Digital Channels Drive Change
Though rampant advertising fraud and a lack of online engagement contribute to the shift from advertising to more content-based marketing, they aren’t the sole driving forces. Additional factors spurring the shift from advertising to content include:
Attitudinal: Consumers dislike and mistrust online ads, with 30% reporting online advertising is not effective, and 54% believe web banner ads don’t work. Adding adjectives to injury, more than half of consumers apply the terms “annoying,” “distracting,” and “invasive” to desktop and mobile web ads, according to an Adobe study.
Privacy and Safety: TrustE reports that one in four consumers worry about the security or privacy of the data collected on smart devices, and only 20% believe the benefits of smart devices outweigh these concerns. They are also concerned about malware attacks and location-specific surveillance.
Channel and Platform Proliferation: New social platforms and converged media formats, like hybrid native advertising, challenge marketers to create not only more content than ever before, but also content that can be easily adapted. It’s more challenging (and, complex) to manufacture content that fits paid, owned, earned, and converged media channels than it is to focus solely on advertising. Marketers today find it increasingly necessary to invest in multiple channels to avoid risk, as efficacy typically waxes and wanes between channels and platforms. Experimenting with new channels can pay off though, as Unilever found that buzz derived from its social content was significantly driving sales. This resulted in the company investing “tens of millions” more into its social presence.
Mobile: As mobile overtakes not only desktop computing but also television in media consumption hours spent, marketers are increasingly challenged by the decrease of advertising “real estate” on devices’ smaller screens. Mobile’s intrinsically personal nature also makes interruptive forms of advertising seem all the more invasive. Additionally, there’s an escalating cost to consumers, as mobile advertising becomes bandwidth intensive, eating into data plans more than opt-in content counterparts.
Omni-channel: There's a growing realization among even those brands that remain satisfied with digital advertising that the ability to buy, target, and optimize banners is now "table stakes," as Yext CMO Jeffrey Rohrs puts it, in an “increasingly complex landscape.” This complexity of multiple channels with complementary content needs raises challenges for brands as they transition from a paid, push-media mindset to creating a thriving content ecosystem. Retailers and CPG brands are expanding content outward from phones and desktop computers and into in-store kiosks and other retail experiences.
Intel has partnered with Turner and Mark Burnett to produce a reality show spawning a cosmos of content, offline and off. "A consumer seeing 10 sequential pieces of content is more valuable to us than seeing the same banner ad 10 times," said Becky Brown, Intel's vice president, global marketing and communications and director, Digital Marketing and Media Group.
Marriott's David Beebee also shared (at a recent conference) that the company has repurposed content that resonates on its owned digital media channels for out-of-home billboard executions, quipping, “a multi-tiered paid model for digital content is as juicy an opportunity as a brand could hope for.”
It's not all gloom and doom – the research contains pragmatic recommendations for shifting investment from paid to owned and earned media. Give the report a read and let me know your reactions.
Submitted by Rebecca Lieb on Tue, 2014-03-18 07:26
The written word seems to be on the decline, at least in the online space. Articles and white papers have morphed into blog posts and status updates. Hashtags, acronyms and emoticons stand in for sentences. OTP, BRB, LMK, OK?
How low can you go? In a year or two, 140 characters — a miserly allotment now — will seem a luxury, a vestige of an era marked by logorrheic verbosity.
If you doubted it before, believe it now: a picture really is worth the proverbial thousand words. Maybe more.
Opinion? Sure. But the facts bear this out. Facebook keeps redesigning to feature bigger, bolder images. Oh yeah, and the company bought Instagram for a cool million. Videos now auto-play on the platform. Yahoo, meanwhile, snatched up Tumblr. Twitter continues to make images and videos a more prominent part of the user experience. And don’t forget the increasing popularity of Pinterest, YouTube, and SnapChat — you can easily see where all this is going.
Research, too, bears out the hypothesis that visual (and audio-visual) content is subsuming the written word. As an analyst, when I ask marketers about the types of content and media channels they’re leaning toward in the future, all forms of written content are on the decline, from press releases to blog posts. Investment is around multimedia and images.
The chart above highlights the reason behind this shift in the we communicate online: mobile. Simply put, no one’s about to read War and Peace on a smartphone. Mobile means a lot of things, but mostly it means that screens are getting smaller. The smaller the screen, the pithier information must be in order to be comfortably communicated and absorbed by its target audience.
Ease of use is key here as well. Platforms like Facebook and Twitter don’t create content, rather they enable its dissemination — and if no one updates their status, then these platforms don’t stand a chance. Clearly, it’s a lot easier to upload that shot of your Hawaiian vacation (or delicious lunch, or mischievous puppy) than to narrate in detail why such things are interesting — especially while using your thumbs and combating auto-correct.
Content Strategy Implications
That content is becoming shorter, less verbose and more visual obviously has tremendous ramifications for content strategy. Here are three major points to bear in mind.
Submitted by Rebecca Lieb on Wed, 2014-01-08 13:00
Longtime readers know not to expect a list of annual “predictions” so prevalent in trade publications this time of year. After all, I’m an industry analyst. Un-endowed with the psychic abilities that would enable me to read crystal balls or entrails, I must instead rely on my innate powers of observation and analysis.
That’s not said casually. Observation and analysis of digital marketing and media is what I do. Based on industry movement, technology developments, and industry trends, these are the areas I’ll be watching most closely in the new year.
Enterprises Organize for Content The hue and cry up to a year or so ago from content marketing evangelists was “hire a chief content officer!” The sentiment behind this exhortation was and remains correct: content strategy is the foundation of content marketing. To create, maintain and enforce strategy, guidelines, processes, governance and guardrails are entirely necessary. However not every board is disposed to create a new C-level position. That’s why companies are taking seriously the need to organize for content marketing. Last spring we identified six real-world models. Expect to see companies begin to adopt these with some alacrity in 2014.
Native Advertising Will Surge Brands, publishers, agencies, technology vendors – virtually the entire digital advertising ecosystem has a stake in the ground when it comes to native advertising. The IAB and the FTC have chimed in with the beginnings of defining the space and the rules of engagement. Virtually all the members of the Online Publishers Association now offer some form of native advertising, and major brands are allocating budget for serious experiments. You’re going to hear a lot more about this form of converged media (paid + owned) in the coming months.
Real-Time Marketing Another form of converged media is real-time marketing, the strategy and practice of reacting with immediacy in digital channels. As more channels and media operate in real-time, and as real-time events such as television converge with digital channel on mobile and social media platforms, virtually all marketers will be challenged this year to define a real-time marketing strategy, and indeed to determine what real-time means for their organization and marketing efforts.
Content Marketing ‘Stacks’ Emerge It’s already happening. Adobe has formally announced what we’ve long known they would: their Marketing and Creative Clouds will merge. Oracle bought Compendium and Eloqua (expect Salesforce to do something very, very similar quite soon – ExactTarget isn’t quite in the content bucket). This trend indicates 2014 will usher in an important new chapter in content marketing maturity: end-to-end, cloud-based technology solutions similar to ad stacks, rather than the boutique array of much more limited solutions that are currently available. This matters not just as a technology play, but as something that will make content a safer and more integrated enterprise investment.
Media Continue to Converge Paid, earned and owned media continue to collapse into blended forms of marketing. This trend is only accelerating with consumer trends such as cord-cutting, that make platforms such as television even more digital than they formerly were. Concurrently, OOH signage and other forms of media are more digital, too, allowing owned content and forms of shared media such as tweets to circulate freely through media ecosystem.
Breaking Down Silos If number 6 comes as a surprise, you clearly haven’t read the first five trends. Media converging, a greater emphasis on content marketing, native advertising, real-time marketing and other blended forms of marketing means teams must collaborate more than every before. Goal alignment, resource sharing, and content portability – none of this happens internally, much less with vendor and agency partners, unless barriers and divisions are smashed. There’s no more time to wait. Silos must be abolished now.
Interoperability Much more than a byproduct of convergence, apps, gadgets, devices are becoming interoperable – seamlessly interoperable. AS a for instance, my personal fitness monitor smoothly syncs with my Android phone, laptop computer, iPad, Walgreen’s loyalty card, stand-alone weight and food trackers, and (if I wanted, which I don’t) with all my social media accounts. All this at the flick of preference radio buttons. The days or “either/or” “Mac/Windows” customer experience are over. Customers expect – and demand – seamlessness from their digital life.
More Mobile Yeah, we hear this every year, but mobile really has come to the fore. More smartphones and tablets are flying off the shelves than PCs and laptops, and mobile finally commands more consumer time than the boob-tube. This means new experiences, media strategies and (looping back to the top of the list) more content, real-time and native in marketing plans. “Mobile first” is no longer a hollow mantra. It’s really, actually true.
Measuring What’s Undefined Is this really a genuine trend? I hope it will be. There’s this unrealistic expectation in digital that everything’s measurable. It is, but not necessarily right out of the box. That’s why publisher metrics are applied to native advertising campaigns (though goals are widely divergent), and way too much stuff is measured in terms of “engagement,” which means something different to everyone who utters the term. A trend I’d really LIKE to see in 2014 is, in additional to all kinds of good metrics such as the ability to attribute ROI and measure accountably and aligned with goals, is a readiness to admit that it’s just too early to apply hard-and-fast, unalterable metrics to brand new stuff we’re all still trying to figure out. Square pegs, round holes.
Submitted by Rebecca Lieb on Wed, 2013-01-02 10:31
One reason it’s so hard to pin down mobile advertising is due to the fact that “mobile” is quite possibly the most imprecise term there is when it comes to adverting and media. Tablet? Yes. Phone? Indeed. E-reader? Laptop? Phablet? Sure. Also, that must-have thing that’s coming down the pike next.
The sizes, functions and purposes of a multiplicity of mobile devices vary greatly, meaning there literally cannot be a one-size-fits-all solution to mobile advertising. However is there is one universal truth about mobile, that will hold as true in the future as it does today, it’s that real estate is limited on mobile screens – much more so than on other digital devices. And that’s what’s limiting mobile advertising.
Mary Meeker’s most recent state of the internet presentation proffered the much-cited statistic that ten percent of media consumption now occurs on mobile devices, yet mobile commands a scant one percent of digital revenues. Yes, this is where internet display advertising once languished, back in the day. Eventually things evened out.
Will mobile advertising repeat the pattern? Don’t be so certain that straight display advertising will ever gain the traction on mobile devices that it enjoys on devices connected to monitors and other, larger screens.
Disparate as the world of mobile hardware is, all mobile devices are linked by a common factor: real estate is scarce. Display advertising on mobile screens is proportionately more intrusive, annoying and unwelcome.
What we’re waiting for is the rapidly growing trend of native advertising to spread more effectively to mobile devices and platforms, and we’re not there yet. Currently, most forms of branded content as advertising occur on publisher sites that help to create them (think Buzzfeed, New York Times, Boston Globe, Gawker Media). Technology from companies such as OneSpot and InPowered that pushes relevant, branded content into ad units are pretty nascent on the internet and don’t yet have mobile strategies. Facebook (as everyone knows) is working on the issue. Some have posited large-scale mobile players such as Samsung and Yahoo may tackle mobile native advertising this year.
In other words, hurry up and wait.
Will 2013 finally be the year of mobile advertising? I don’t think so, but that long-awaited era may be on the horizon. The solution to ads on mobile devices that consumers accept and value (as opposed to the 50 percent of clicks on mobile ads purely attributable to “oops“) will be content, not advertising driven.
Submitted by Rebecca Lieb on Mon, 2012-12-17 11:26
Predictions can be fascinating, but let’s face it. No one I know is in possession of a working crystal ball, and digital marketing and technology move way too quickly and too erratically to do much more than keep us guessing (not that that isn’t half the fun).
I’m an analyst, not a psychic. So rather than play the “what’s next?” guessing game, let’s instead focus on “what’s important?”
These are the areas I plan to keep a close eye on in 2013. What would you add — or subtract — from this list?
1. Media Convergence The blending of paid, owned and earned media will continue and intensify in 2013 spawning new technological solutions, necessitating new skills, new workflow systems and new partnerships. As the lines continue to blur between what’s paid, owned and earned in digital (and soon, traditional) media, this will be the trend that governs nearly all other major change in the digital marketing and media landscape.
2. Native advertising Between banner blindness and the fact that display, search and social advertising has largely moved toward programmatic buys that are much less profitable for publishers, we’re seeing a number of technologies and solutions emerge to facilitate native advertising, one of many terms for plonking content (often, unbranded content) into ad units (a manifestation of media convergence). Products and solutions in this area will continue to emerge, more publishers will accommodate it, and no doubt we’ll see some interesting, large-scale media partnerships emerge as a result.
3. Demand for broader skills and tighter workflows will intensify intensifies Looping back again to media convergence, the increasing overlap between paid, owned and earned channels is creating a demand to bring in new skills and more closely integrate workflows within disciplines. Take PR, for example. Traditionally, public relations has specialized in owned (content) and earned (in the sense of traditional) media. Throw in native advertising and suddenly PR agencies are faced with the prospect of media buying, a skill that’s always been the exclusive domain of advertising agencies.
And with media buying come other skills such as media optimization and analysis. Put otherwise, digital, which has become increasingly siloed and Balkanized in recent years, will no longer be able to pull the “that’s not my table” routine. All players must develop an understanding of related digital channels (search, social, email, analytics), as well as come together around a table and really, truly play as a team.
4. Real-time marketing & listening platforms Real-time marketing demonstrably works — not just in social channels, but across the marketing spectrum. A recent GolinHarris study finds real-time not only positively impacts standard marketing goals — word-of-mouth, attention, preference, likelihood to try or buy — but it also turbocharges other marketing initiatives, including paid and owned media effectiveness. Event- and news-driven marketing will become increasingly vital as brands work to become more relevant. This requires sophisticated listening and monitoring platforms, and often 24/7 staffing. Teams require tools, and training to respond in accordance with social media policies and in the brand’s voice. They must also be permitted to work in an agile environment, free of the chain-of-approval strictures that are antithetical to real-time marketing.
5. Organizing for content marketing & content strategy As brands recognize the necessity of adding content to the marketing mix, they quickly realize something else. Precious few organizations have a Content Division. In 2013 brands will begin to address this deficiency in earnest. They will hire, reorganize and make room on the org chart for effective content marketing operations that work in concert with existing marketing functions from social to communications to brand, creative and advertising.
6. Visual information takes precedence Research I published in early 2012 demonstrates that when marketers are asked what kind of content they’ll be investing in going forward, anything visual takes precedence over the written word. The unfettered growth of Pinterest, infographics, Instagram, and Tumblr, not to mention the always-growing popularity on online video, bears this out. Visuals capture attention. In a world in which brand messages clamor for consumer attention across screens, devices and channels, a picture is worth the proverbial thousand words. Keep your eyes open in 2013. It’s going to be a colorful and visually arresting year.
7. Online/offline channels converge, i.e. everything becomes more digital As media become more digital, we’re seeing digital messages appear in new places: out-of-home channels such as billboards and digital signage, as well as TV screens, are hosting streaming and social media.
The above are my top seven, but I’ll be keeping an eye on some other trends next year. Mobile is always changing rapidly, gamification is developing and interesting, so is wrangling and making sense of big data.
The single most interesting trend in 2013? Easy. It’s the one we don’t even know about yet.
Submitted by Rebecca Lieb on Sun, 2012-09-16 13:32
Characters on packaging sing and dance. Retail inventory “knows” where it is in the store, and when it needs to be restocked. Invisible coupons can be snatched from the ether, and mobile devices can lead shoppers to items that match pre-selected criteria (low-fat, gluten free and strawberry flavored). Open the car door and, as the heat and engine automatically start, the seat slides to your preferred position.
The sentient world is no a radical future vision, it’s present reality. Readily available technologies such as smartphones, Google Goggles (and soon, Glass), augmented reality (AR), smart keys and fobs, even laptops make it increasingly easy to apply layers of content, images and information on top of object, products, and places. And at the same time, to view and experience these additional layers of content. Technology developments will soon enable more and more objects to become sentient, as Corning so elegantly depicted in its highly successful A Day Made of Glass Video:
Brands, particularly those aspiring to a cutting-edge image, have embraced advertising and marketing in the sentient world. Augmented reality almost seems old hat when you start totting up brands that have tried it, including GE, Nestlé, Lego, Kellogg, Mercedes-Benz, and Tesco. Ben & Jerry’s augemented ice cream lids. Starbuck’s experimented with enhanced coffee cups.
An iPhone app created by Dentsu in Japan allows shoppers to see animated butterflies flitting by. Each butterfly contains a coupon for a nearby business. In-store smart kiosks are becoming popular, as are apps that facilitate shopping. IBM has developed an app that finds what shoppers are looking for by scanning the shelves with a smartphone’s video camera
The sentient world goes far beyond in-store and CPG applications, of course. Destination and place marketing creates enormous potential both for data and for marketing and advertising applications. Kia, for example, a US Open sponsor, put a layer of information over last year’s event.
Unquestionably, as technology becomes increasingly sophisticated as well as cheaper, and as consumer adoption of smart devices soars, the world of places and things will become increasingly sentient. This raises a number of questions marketers must begin addressing now in order to intelligently introduce content – literally – into other dimensions.
1. Whose data surrounds your product? From a marketing perspective, the sentient world fundamentally means Things + Places = Media. OK, but what content is appropriate for which things, where? This is where content strategists and marketers face new challenges. Will they create it? Aggregate it? Allow users to contribute it? What are the paramenters of the “what”? (How comes later).
2. How will user-generated content be considered and handled? It’s already easy for users to add layers of content to the sentient world. How will brands cope with virtual UGC? As with social media, brands face a lack of control in many aspects of the sentient world. AR is something consumers can do already. Smart devices such as keys have been hacked. Negative sentiment is inevitable. UGC will soon literally spill out of the web and into if not everything, then many things that will affect brands.
3. What data should or could be layered on your product, service or brand? What information, images, data and media should surround a carton of yogurt? A cinema box office? A hammer? What goes on the label, the package, and what constitutes an invisible but discoverable layer in the virtual world? Here, content strategy merges with merchandising, packaging, point of purchase and other marketing functions in a highly complex interchange not yet informed with best practices and cases studies.
4. What’s appropriate, in line with marketing and content strategy and makes sense for the target audience? Currently, augmented reality is the dominant channel for marketing in the sentient world (though technology developments could shift this paradigm, and quickly). AR is opt-in. It requires a call-to-action to impel a consumer to whip out a device, fire up an app and experience the data layer. Will it be worth the effort? What’s the payoff? What’s the appropriate form of the call-to-action? More open questions that will only be resolved by extensive trial and error.
5. Data will be experienced in real-time. Do you have real-time ability? Real time marketing and advertising are becoming commonplace for many brands such as Pepsi and Applebee’s. Their marketers have always-on war rooms in which highly trained social media and analytics teams monitor digital sentiment and interaction 24/7, reacting and optimizing messaging in real time. The sentient world will rapidly become part of this intense, pressurized marketing function.
6. How will workflow be managed? Whose job is it to oversee these virtual layers of data? As with other forms of content marketing, clear roles haven’t yet emerged. The sentient world calls for developers, content creators, multimedia producers, strategist, creatives and more. Staffing, relationships with vendors and outside agencies and technology investments will all be affected – and require investment and ongoing budget.
7. What metrics will be applied to the sentient world? Interactions in the sentient world can be measured, but marketers have always had difficulty determining what to measure, particularly in new digital channels. Very little in this realm conforms to simple direct marketing metrics. Instead, more complex KPIs (key performance indicators) must be developed.
8. Who partners in this ecosystem? Who will brand align with to leverage the possibilities of this new ecosystem? If your refrigerator tells you it’s time to buy a fresh carton of milk, will the alert be accompanied by a coupon? When your car wants oil or fuel, will it recommend a preferred brand? Perhaps your phone will “know” there’s a nearby McDonalds where you can recharge – both the battery and yourself. Brands will soon explore newly-logical alliances.
9. What platforms matter now, and what must be accommodated in the future? A tough but persistent question in mobile has always been around platform. iPhone? iPad? Android, Blackberry, other tablets? What devices will consumers carry, and how will they use them to interact with places and objects? Yesterdays cameras, MP3 players and e-readers are consolidating into phones now. What will tomorrow bring – and how will you bring your data to that platform?
10. After the first wave of doing it because it’s cool, what’s next? As with all new technologies, the sentient world is a novelty now. Any reasonably serious brand initiative is almost guaranteed to have a novelty factor, PR amplification, buzz – the whole first-mover advantage package. More strategic brands will be asking themselves what comes next. How will we work, play, shop, travel and interact with the sentient world when it’s just another part of…the world?
Submitted by Rebecca Lieb on Wed, 2012-09-05 10:17
If you work in digital marketing in some capacity (if you’re reading this, it’s likely you do), you probably devote little to no time thinking about co-op advertising. You may only have the vaguest idea of what coop advertising actually is, or how it works.
While you’re ignoring coop advertising, the manufacturers who run coop programs are equally busy ignoring you. They’re too busy pumping an estimated $50 to $520 billion into their coop programs annually. Online advertising may be growing by leaps and bounds, but it’s getting significantly less than one percent of this enormous sector of the market (by comparison, GroupM estimates total U.S. advertising spend this year will be $153 billion).
While the above figures indicate valuing the coop advertising market is difficult, clearly it represents a huge reservoir of potential digital spend. So how come digital is getting so little of it? This is a topic I’ve been discussing with the IAB for some time. Recently, they asked me to look into the issue more deeply. My findings are available on the IAB website as a PDF download. Here’s a brief overview of what co-op advertising is, why digital is missing from the equation, and what steps the industry might take to rectify a clear imbalance.
Coop Advertising Defined
Coop advertising is an agreement between a manufacturer and a retailer to share advertising costs. Typically, manufacturers underwrite from 30 to 50 percent of advertising costs, though contributions from 75 to 100 percent aren’t uncommon. Different manufacturers have different policies. They may provide creative, furnish the ad, or underwrite only media costs.
There a numerous beneficiaries in this ecosystem. Manufacturers get increased exposure at a lower cost. Retailers benefit from brand name product associations, while smaller retailers who might not otherwise be able to afford to advertise can, thanks to co-op dollars. Agencies and media companies can increase their billings, and media companies fill ad inventory.
The Missed Digital Opportunity
Of over 1,000 coop programs listed in the Local Search Association’s database (representing over 1,700 brands), only 223 permit limited forms of digital advertising, generally search and display. Several explicitly forbid coop dollars from flowing into digital channels. This, despite hockey-stick growth in local search, advertising, targeting, daily deal and coupon sites, etc. (and local is, of course, the bread and butter of retailer-focused coop programs).
A recent study by Borrell Associates estimates the online co-op market currently makes $1.7 billion available, with $450 million of that left on the table “for lack of participation.” Couple this with the majority of co-op programs that limit or preclude allocating spend to digital channels, and the potential value of this market could very quickly exceed $5 to $10 billion per year. This is roughly double 2011’s online retail spend of $7.1 billion (IAB/PwC).
Clearly, it’s time to take stock of the obstacles that prevent this revenue from flowing online. We identified three primary stumbling blocks:
Complexity and multiplicity of digital channels On both the manufacturer and merchant sides, the sheer amount of knowledge required to advertise in digital channels is a formidable barrier.
Lack of infrastructure On the manufacturer side, co-op advertising sometimes falls under the auspices of marketing, but more frequently is a function of either the sales or the finance department, areas inherently unlikely to be versed in digital marketing strategies or tactics.
Lack of guidelines and requirements - Co-op advertising program rules around issues such as logo usage, mentioning competitive products, and general branding requirements are established in traditional channels. Digital provides range of new challenges (e.g. manufacturer rules around bidding on brand or trademarked terms in search).
With billions of dollars on the table, its time the industry met these challenges head on. Our recommendations include strategically and tactically addressing a multipronged approach.
Awareness Just as manufacturers and retailers are unaware of the potential benefits of online advertising, not to mention the actual tactics and techniques for executing digital campaigns, so too is the digital ecosystem largely blind to the potential and the workings of co-op advertising.
Education Channels, metrics, targeting, and the like are close to a foreign language for many retail executives, particularly the “mom ‘n’ pop” retailer.
Standards and best practices Online co-op advertising does exist, particularly in the automotive and durable goods sectors. A closer examination of how successful programs in these verticals function can lead to case studies and ultimately help create templates on which broader co-op programs in different industries can be based.
Technology Development of platforms that enable workflow automation would go far to make the co-op advertising process easier both for manufacturers and the often over-burdened merchants who run co-op campaigns. Also useful would be a comprehensive database of co-op programs and digital asset management systems for logos, creative executions, and brand elements.
Publisher initiatives - Assist in helping to re-establish the co-op ad manager role, this time with a view toward online display advertising.
Cooperation with co-op ad management companies - Many legacy co-op program management companies have expanded into the digital, yet remain unconnected with mainstream publishers and industry trade groups.
The IAB, together with the Local Search Association, have taken an important first step in creating awareness of the value and the lack of coop advertising in digital. The next step is to drum up a broad swath of industry involvement. We need more trade groups (Shop.org and the OPA come to mind) beating this drum with their constituencies. Agencies, technology providers and VCs should be brought into the discussion. Both sides need to talk, and to listen to each other.
Bringing coop advertising online will be neither quick nor easy. But with billions of dollars at stake, you can bet it’s bound to happen.
Here's the presentation I delivered to the IAB's Local Advertising Committee on Sept. 5:
Submitted by Rebecca Lieb on Tue, 2012-02-07 13:04
There are three types of content marketing: the two types everyone immediately 'gets' (entertainment content and educational content), and #3, which generally takes a while to sink it. I call it utility content. It's not narrative. It doesn't tell a story or teach you how to do something. Instead, it does something for you.
Think online mortgage calculators, or those forms that figure out what you should weigh based on height, age and gender. They're wonderful content for sites that sell financial instruments or diet-related products. Yet increasingly often, utility content is mobile. Apps help consumers find goods and services on the go, deposit a check in the bank, and perhaps first and foremost, to shop.
My colleague Chris Silva has just published a research report "Make An App For That: Mobile Strategies For Retailers" (embedded below). Marketers can learn a lot from reading it, too. Outlining successful mobile strategies from the likes of Best Buy, Starbucks and Zappos.
The report divides retail mobile app strategy into two umbrella channels; Enrich, or drive transactions; and Engage, to improve user interaction and brand affinity. It then walks readers through the strategy and development steps for turning a concept into an app.
Submitted by Rebecca Lieb on Sat, 2012-02-04 18:46
Many of us grew up with Marcia, Marcia, Marcia. For the past few years the refrain has been Google, Google, Google. But this past week, it’s been all Facebook, all the time.
As we wait for the biggest IPO in tech history to shake out, the question I’m being asked most by clients and especially the mainstream media is, by far, “what’s Facebook going to do with all that money?”
I’d love it if “One Buck Zuck” would send me a check. Barring that, some reasonable conjectures can be drawn.
Mobile Facebook’s S-1 filing contained all the usual risk disclaimers: changing market conditions, loss of key executives, that stuff. But there was one zinger in the boilerplate – Facebook’s statement that mobile is growing fast, and that the company can’t yet monetize it. It’s not too much of a leap from there to the conclusion that multiple millions of dollars can be applied to figuring this one out. An article published the day after the filing suggests we’ll see the first Facebook mobile ads in March. Yet mobile means different things to different users, fast as the channel is growing. Smartphones, tablets…when it comes to mobile advertising, Facebook will require more than one solution. And that’s to say nothing of Facebook Credits and other commerce opportunities on mobile platforms. There’s plenty of R&D opportunity for Facebook across the mobile spectrum.
Data Data is Facebook’s core product. Not only do they have more of it every day on their users, that data is getting increasingly complex. In addition to basic demographic data, there’s friends and friends-of-friends. Groups they’re a part of, companies worked at, Likes, and soon, Actions, what they’re reading, listening to, eating and buying are only the beginning. Managing this data, parsing it, and making it useful and actionable to advertisers and marketers in ways that can help increase user engagement, create newer and more premium advertising products, extract deeper meaning and clarity from stores of data so complex it very nearly qualifies as big data is challenging, to say the least. It’s also critical to Facebook’s future. Data is what Facebook sells.
Platform What’s next for Facebook’s platform? It’s currently central to a vital Facebook economy. Without that platform, companies ranging from Zynga to Buddy Media would hardly exist as we know them today. Media companies from the Wall Street Journal to Spotfiy wouldn’t be able to reach and interact with Facebook users. It’s critical to keep that platform open and to continually expand upon its scope. Is social commerce the next comer? Features that link Facebook more deeply into the real world? Without the platform, Facebook doesn’t have the data, so watch for new developments in this arena, too.
Acquisitions Remember when Google was just a search engine? That was years ago, before YouTube, Blogger, Analytics and a host of other features that now seem integral to the company, but once upon a time were acquisitions. Google has largely become a roll-up, and Facebook could begin to follow that path as well (maybe by buying a search engine and finally incorporating real search into its platform?). Sure, Facebook’s made some small acquisitions in the past, but these are broadly viewed as more a bid to acquire talent, not technology. With a mind-boggling bank balance, that may well change.
5). Talent Silicon Valley engineers are high in demand, and you have to find a way to bring them to your company. In Facebook’s case, it’s not longer possible to do this with the lure of pre-IPO stock options. Facebook will soon be forced to pay a premium for new talent, particularly as some of an estimated 500 to 1,000 newly minted millionaires cash out. Sure, some will buy houses and cars. But others will yearn to get back to start-up culture. They’ll start new ventures, or even finance them. Facebook will pay more for talent in the long run, but their IPO will help to spark Silicon Valley’s economy, and that can only mean good things for innovation.
Submitted by Rebecca Lieb on Tue, 2012-01-03 11:53
Another year, another stream of predictions. Not that predictions aren't interesting, mind you, but I've never been one to focus on them. Sure, I avidly follow trends in digital marketing and media, but what really jazzes me about following the sector for a living is the surprise factor. It's not knowing what comes next because next can be so out-of-left-field disruptive.
The other cool thing about this job is it's like being permanently enrolled in grad school. That may not be everyone's cup of tea, but I happen to love constantly watching and learning. So rather than share predictions for 2012, it seems more grounded and sensible to share a list of the top things I plan to study more closely and learn more about in 2012. Perhaps one or two of these topics will turn into a formal research report, perhaps not (oh, to be able to deep-dive into everything!).
Behavioral Targeting: Not to begin on a negative, but I'm becoming increasingly convinced BT plain doesn't work. That's why I'd like to examine it more closely. Having done all my holiday shopping online, as well as extensive research and buying for a home remodeling project, it's appalling how many wasted BT ads I see, most for the selfsame products I actually bought from the advertiser. "This can't be right," says my consumer persona to my analyst persona. "Look more closely at the methodology of all those studies out there that 'prove' BT's effectiveness."
Personalized Search This has been going on a while now, of course, but more and more, your search results differ significantly from my search results. Location, time of day, social graphs, search history -- a zillion factors figure in to what search results are displayed, and as a result, what ads and data appear in your browser. Need to keep up with this continually moving target.
Social Media Fatigue Facebook, Twitter, Google +, Foursquare, Pinterest, LinkedIn, Miso - and that's just a few off the top of my head. Just as consumers never watched all of the 200 or so cable channels bundled into their subscription packages, there's only so many hours in the day to update where you are, what you're doing, what you're watching and eating and with whom. This space seems primed to shake out, doesn't it? How will consumer behavior and adoption change, and how fast can new social plays keep launching?
Big Data Collecting, crunching and making actionable data from disparate on- and offline sources will require significant investments in technology, manpower and learning for companies. Big data is all the buzz, yet many marketers still don't know precisely what it is. Everyone needs to bone up on this topic in 2012.
Real-Time Marketing Top consumer brands, notably Pepsi, are starting to take this topic very seriously, and even some B2B giants such as GE are looking at the space. Monitoring, assessing, triaging, assigning, and responding to real-time conversations, events, posts, tweets and other digital information increasingly matters. And like Big Data, the challenges and resources it requires are formidable. A fascinating area to keep an eye on.
Regulated Industries It's fascinating to watch highly regulated industries, such as pharma and banking, attempt to embrace digital marketing in general, and social media in particular. They face formidable barriers and more interesting challenges than most. I'm hoping to speak with more marketers from regulated sectors to learn more about how they're coping.
Internet of Things When everything has an IP address, everything gets a lot more interesting. Once devices from cars to refrigerators and the dog's food bowl are connected, the implications for marketing, communication and even society will take surprises turns. This space is quite simply mesmerizing.
Effects of Social Movements Occupy Wall Street fallout, the presidential election in the US, societal shifts in the Middle East. Social change resonates in digital channels (and vice versa). It's going to be a big year for social change, and that will inevitably impact digital.
What's Starting Up? As always, I'll be keeping a close eye on start-ups. What's launching trend-wise? Who's getting funded? Who isn't? Following the money and the technology is not optional - it's integral to watching this space.
Content Marketing A pet topic, the subject of my most recent book and my forthcoming research report. Keeping a close eye on how marketers are moving into content, which requires a rebalance of thought processes (ongoing, not episodic, campaign-based thinking), as well as new budgets, agency relationship and staffing requirements - not to mention a shift in corporate culture.
That's my 2012 syllabus. What's yours?
Please reply in the comments. And if you're behind a company active in one of the above areas, perhaps we should arrange a briefing sometime this year.