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By SEB JOSEPH

Agencies, like many businesses following George Floyd’s death at the hands of a Minneapolis police officer last month and the massive protests that have followed and continued with expanding intensity, have universally condemned racism with promises and platitudes from the C-suite.

But in doing so they have stirred up criticism among staffers concerned agencies won’t actually fight racism within their ranks and cultures with anything beyond empty lip service. In the latest edition of our Confessions series, where we exchange anonymity for honesty, we hear from a senior director at global media agency about the realities of working in businesses where racism and inequality issues facing people of color remain as entrenched as ever.

This conversation has been edited for length and clarity.

How has the agency’s stand against racism affected you?

It’s cool the company has publicly supported the Black Lives Matter movement and the email from the CEO hit the points you would expect. But these are tiny steps in the right direction. There are still thinly-veiled everyday instances of racism. It’s easy to say you’re a not a racist, but the reason so many companies have been so tone-deaf on this issue to date is that they’re not anti-racist. These micro-aggressions aren’t really being discussed. And when they are it’s half-baked or in private.

What do you mean by anti-racist?

Even with all the rhetoric in the last few days, I’ve lost track of the number of video calls and WhatsApp Groups I’ve been brought into where I’m the only person of colour there. The rest are all white. I know for a fact that some of my colleagues in those meetings are underqualified to be there, while there are others who look like me that should. It’s this covert stuff that no one wants to discuss. It’s not racist per se, but there’s an extreme prejudice in agencies that will be hard to shake until this generation of leaders retire.

So the biggest block to anti-racism at agencies is leadership?

Take my team for example. There are four women, one is from Spain, another is from south-east Asia and the other two are from London, one is Nigerian and the other is from Essex, England. Then there are three men, one is white and from Essex, another is from Pakistan and I’m a Londoner. The team lead, however, is white. It’s like that across the agency and it’s been like that at other places I’ve worked. I’m not saying that white leaders are bad. But what this situation tells me is that leadership is reserved for a cohort of people who all come from the same place.

Have you tried to address this?

No. I don’t want to rock the boat — even now. I’m at a point in my career where I’m senior enough to have a few direct reports. The last thing I want to do is become known as the guy who plays the race card even if it is valid. It’s happened in the past at other agencies where I’ve raised certain things like why I’ve been passed over [for a] promotion for someone who hasn’t brought in half of the number of billings I have. People got defensive and wanted to silence me. Rather than let those responses get to me, I take those moments as a sign to move on. I can’t afford to have my career stall. Once I’m senior enough in this industry that’s when I’ll be able to bring more people like me through the agency.

So the only way you get promoted is to move to a different agency?

Yes. As a minority, you have to work harder by default. Being constantly on the move is stressful, but I’m aided by friends throughout the industry who help me with job prospects when they can. Career progression is a real worry for me. There was a pitch a year ago that the agency had a lot riding on. I did everything on that pitch, from leading the economic analysis of the client’s business to ordering the food when the team worked through the night on it. I was involved in the presentation to the client alongside some execs our agency usually bring in specifically for that part. When we won it I expected to be promoted. Instead, the promotion went to the white woman who presented my plan but hadn’t worked on it. What’s worse is there was no real explanation as to why I wasn’t promoted. I left shortly after.

Are there any senior people in the agency who can help or mentor you?

If you look hard enough there are black and Asian people who are making moves at the top end of this industry. I’ve got a lot of respect for them. But in my experience, they either can’t relate to me or are out of reach. A lot of those people went to private school and count ski trips as hobbies and come into work wearing Jimmy Choo trainers. I’d rather go to the beach and that’s too much cash to be wearing on my feet. There’s a small group of white people who all look and sound very similar at the top of the agency business. And the few people of color that do mix in those circles have to conform to behaving in the same way. As smart as they are, they can’t really help me.

By SEB JOSEPH

Sourced from DIGIDAY

By Anders Hjorth

Social media advertising allows businesses to reach users during their prime time and in pleasant, entertaining and engaging ways. Find out which platform suits your needs.

Social media has become a mass media, but a personalized one. Remember that scene from the film Minority Report where Tom Cruise walks through a shopping mall and the interactive ad displays address him as a different person, because they scanned his new eyes and took him for someone else?

Social advertising is moving in that direction: No user experience is ever identical to another on social media.

Each screen a user sees comprises numerous elements, that are all optimized by algorithms, which in turn feed on data the user has declared, and on behavior the social network has detected. Some of these elements are advertising. Personalized to the user’s profile, and designed to be a part of the experience.

Overview: What is social advertising?

Social media provides a useful and entertaining experience to its members for free. In return, social media platforms monetize user data by providing powerful digital advertising solutions to advertisers.

Advertising through social media takes the form of banners, posts or videos. Social media ads, many very creative, blend in with the context and appeal to the user.

Snapchat campaign for Bacardi

In a Snapchat campaign for Bacardi, branded filters were used to enable users to send branded postcard-like snaps to their friends from the music festival they were attending. Source:

Snapchat

Benefits of advertising on social media

One of the great benefits social media provides to businesses is the establishment of a direct relationship between you and the user. Advertising through social media creates, extends and activates these relationships. Let’s look at social advertising benefits for businesses.

1. Audiences can be precisely targeted

Users enter their data into social platforms: names, photos, job titles, location, marital status, friends, and much more. Social platforms monitor behavior and interest.

This data enables advertisers to reach the right audience and create targeted ads for it. If an advertiser has a well-defined target market, they can deliver it via social media advertising. Advertisers no longer target media channels, they target audiences via media platforms.

2. Social ads address “awareness”

The “hierarchy of effects” model, often used in marketing and advertising to describe the mental stages a user moves through before purchasing a product, contains three stages:

  • Cognitive (awareness and knowledge)
  • Affective (liking and preference)
  • Conative (conviction and purchase)

Social media advertising is good at addressing the cognitive and affective stages. This makes advertising on social media complementary to direct mail, search marketing, or retail media, which have their strengths at the conative stage.

3. Everything is measurable

Every social media ad impression leaves a digital trace. Every click can be tracked. User characteristics and user behavior can be related to each instance of advertising within a social platform.

So much data exists that it becomes challenging to figure out what is significant and what isn’t. Once advertisers choose the right social media metrics, however, this data will be easy to track and optimize via the social platforms.

4. Social advertising is scalable

Social media advertising costs for a campaign can start as low as $10, and the advertiser has control over timespan, targeting and creative. It can also cost $10 million and cover the globe. Between the two, advertisers have ample room to test, learn and adjust.

Marketers, mainly using social media advertising to boost and enhance their content strategy, can monitor and manage it directly through their favorite social media management tool.

5. Social ads can trigger actions

Whereas social media advertising is often used for building awareness, it can also trigger actions. It generates likes and follows, and can also generate clicks to your website and create leads for your sales and marketing teams.

There is even a rising social commerce trend, where social media advertising feeds directly into the conative stage: users can buy products directly on social media.

The 5 best social media platforms to advertise your small business

The Facebook Ads platform is dedicated to social media advertising, and the Google Ads platform also spans other forms of digital advertising. We will focus on the social media advertising aspects of seven digital advertising platforms.

Platform 1: Facebook Ads: Facebook, Instagram, WhatsApp, Messenger

Facebook controls the most powerful advertising platform in the world, as it combines Facebook, Instagram, WhatsApp, and Messenger together on the same infrastructure.

Most advertisers, however, will consider Facebook and Instagram to be two advertising platforms, and WhatsApp and Messenger to be additional features.

Characteristics of the Facebook ads platform:

  • Massive reach
  • Very powerful targeting
  • Innovative and adaptive ad formats
  • Machine learning used to improve performance
  • Most controversial use of user data

Facebook Ads by, itself, is probably the strongest social ads platform and is now also the backbone for advertising on Instagram. Depending on your campaign objective, the platform can activate one or more of its advertising channels.

Platform 2: LinkedIn Ads

The LinkedIn advertising platform stands out for its strong business focus. It’s increasingly integrating with the Microsoft Advertising platform and has access to a powerful technological backbone in its mother company, Microsoft.

Characteristics of LinkedIn Ads:

  • Clear business focus
  • Strong targeting of professional audiences
  • Maturing platform
  • Reputation for high cost

Platform 3: Twitter Ads

The Twitter advertising platform is not as powerful as the two above platforms, but Twitter has an interesting positioning as a great add-on for other social networks. The quality of its user data is not as good as the other platforms, but it is strong on topical and thematic targeting and for events.

Characteristics of the Twitter ad platform:

  • Lower volumes
  • Strong topical targeting
  • Specific communities and events
  • Reputation for low costs
  • Complementary to business activity on Twitter

Platform 4: Google Ads: YouTube and Google My Business

Google never created its own social network despite the efforts put into Google Plus and other initiatives. However, many consider YouTube to be a social media platform and the more recent Google My Business platform also has some social media resemblance.

Characteristics of the social media dimension of Google Ads (YouTube and Google My Business):

  • Massive video reach on YouTube
  • Low cost per view on YouTube and innovative ad formats
  • Strong integration with the Google advertising technology stack
  • Effective social-local advertising on Google My Business

Emerging platforms: Pinterest, TikTok, Snapchat

The social media landscape is constantly changing. Recently the video-driven social media platform TikTok has entered the scene in a significant way. Its closest competitor, Snapchat, had experienced spectacular growth.

The emergence of new players like TikTok and Snapchat makes it hard for existing players like Pinterest or Twitter to keep growing because they are all fighting for the attention (and dollars) of the same audience.

Emerging social advertising platforms:

  • Pinterest: The creator of pin boards where users can gather images from around the web thematically and share with others, is still going strong. It’s finding itself a positioning on social commerce, as it has the power to inspire users for their purchases. If the platform can generate sales and connect to its advertising, it has strong arguments for attracting more advertisement.
  • TikTok is reaching a young audience massively and strongly influences this group. Its recent advertising offering is creative, including formats like stickers, filters, and overlays.
  • Snapchat has also seduced a large young audience which can be difficult for advertisers to reach. Its creative, innovative, and fun use of digital media shines through in its advertising formats.

Campaign on TikTok in Thailand

In a campaign on TikTok in Thailand, Colgate used an innovative ad format. They designed a clickable “branded effect” triggering a visual effect of exploding hearts when users made a “kissy face”. Source: TikTok

Social ads are a world of opportunity

Social media advertising is a mass media that can entertain, influence and seduce its audiences. Social media platforms provide powerful targeting capabilities and innovative ad formats.

Advertisers can start small and scale infinitely, but need to be very clear about their objectives, to reap the benefits of social ads. Finding the right social network and reaching the right audience can be challenging, but the opportunity is huge and the benefits can be significant.

By Anders Hjorth

Sourced from the blueprint

By

Dive Brief:

  • Coca-Cola will restart its marketing efforts soon after pressing pause during coronavirus lockdowns, according to a WARC report.
  • The brand plans for a new focus on agility and flexibility as it — and consumers — emerges from the pandemic. Real-time content production and streaming will also get a bigger focus in the beverage giant’s marketing plans in the months ahead, when Coca-Cola expects to adjust spending based on the current moment, per WARC.
  • The company had kept up its social engagement during lockdown but had pulled other forms of advertising during the pause. “The decision to be dark is not sustainable in the longer term and especially now that our customers are going back to being active,” Barbara Sala, Coke’s CEE strategic connection and media director, said at the IAB Europe Interact conference this week.

Dive Insight:

As restaurants and bars closed up shop and concerts and sporting events were canceled during the early stages of the pandemic, Coca-Cola downshifted its advertising. The brand turned its focus from out-of-home, billboards and TV to smaller digital and streaming options to connect with people looking for entertainment at home.

Now that world is slowly beginning to reopen, Coca-Cola is forging a new way forward that includes digital efforts similar to those the brand explored and employed during the pandemic.

Sala said during the conference that lockdowns showed how “digital has been very much able to, immediately and in real time, reach our consumers in many different forms … and some of them really astonished me.”

During the early days of stay-at-home orders, Coca-Cola signed on as the exclusive launch partner to BeApp, a new music streaming platform that integrates gamified and social media elements into the virtual concert-viewing experience. Coke Studio Sessions has featured a number of high-profile artists such as Katy Perry, Miguel, Steve Aoki and the cast of the musical “Hamilton.” This experimental push could signal some of the campaigns that could come as the beverage giant pushes forward.

But Coca-Cola won’t be the only company rethinking digital strategy post-coronavirus. Chief rival PepsiCo also cut back on nonessential ad spend during lockdowns in favor of consumer activations that tapped into what was becoming popular during the pandemic. This included integrations with actor John Krasinki’s feel-good “Some Good News,” a YouTube hit that recently sold to ViacomCBS and a Tostitos Facebook livestream where Bill Murray and Guy Fieri competed to make the best nachos.

Feature Image Credit: Marc Fulgar / Unsplash

By

Sourced from MARKETINGDIVE

By Molly Mulloy

If Madonna doesn’t start playing in your head when reading that headline, you’re much younger than me. But more importantly, the word “affiliate” should send your mind scrambling as we all try to adeptly learn the ins and outs of affiliate marketing in today’s publishing world.

Affiliate marketing is a payout to affiliates, generally influencers or media that promote your brand or product with a unique link that tracks their contribution to your sales. When a sale is made from their link, they earn a commission, generally 5%-10% of the product cost. You can think about affiliates, also known as publishers, as external salespeople for your brand — they essentially market your product, whether consumer packaged goods, consumer electronics or pretty much anything else you can physically sell.

As a communications executive, the first media outlet I really saw put affiliate deals to works was Wirecutter, a product reviews site that was quick to monetize and today sits within The New York Times Company. This new model was a critical development for publishers because media outlets struggled to make up for declining ad sales. Today, most media outlets have commerce teams that handle their affiliate programs. Transparency is critical, so most publish their terms to explain the separation of editorial content from affiliate programs.

Most influencers also leverage affiliate programs today. They use their personal brand equity and channels to endorse and promote products, with affiliate revenue often representing their largest stream of income.

The adoption of affiliate marketing today is incredible: 81% of brands and 84% of publishers leverage it, with spend increasing 10% a year, expected to reach $6.8 billion in 2020.

Today, an entire industry has popped up to broker affiliate deals, working with both brands and publishers to set up programs, including SkimLinks, CJ Affiliate, Share a Sale and Rakuten. Behemoth Amazon runs its own affiliate program. And while the company recently cut its affiliate rates dramatically, Amazon’s sheer size will continue to drive a massive volume of affiliate sales and commissions.

Making Affiliate Marketing Work For Your Brand

As PR practitioners, we are seeing more media connect us to their commerce editors, and more influencers request either that we provide an Amazon link or details of our affiliate program. We also have media tell us who they work with, and we find CJ Affiliate and SkimLinks to be the most common, with CJ claiming Buzzfeed, CNN, Time and Wirecutter as a few of many publishing partners, and SkimLinks claiming Condé Nast, Gizmodo, Hearst and HuffPost.

Brands today should have affiliate programs, and if not, they should make their products available on Amazon. When pitching a product to media, including an Amazon link or an FYI link to the brand’s affiliate program is common practice for PR practitioners.

Marketers should take the time to connect with commerce editors to understand the unique programs and policies for their key outlets. The brave new affiliate world we live in is not going away, and being able to navigate it expertly is critical to a brand’s success.

Feature Image Credit: Getty

By Molly Mulloy

Career PR executive who made jump as partner into startup agency, Crafted Communications. Haven’t looked back. Read Molly Mulloy’s full executive profile here.…

Sourced from Forbes

By Carlla Keyl

These days, it seems like everyone is hoping to become an entrepreneur and come up with “the next big thing”. Who can blame them? When successful, the benefits to owning a start up are obvious: being your own boss, creating something from scratch, bringing value to the people around you and, of course, making a bit of coin along the way. But the key phrase in that equation is, “when successful.” Too often, start-ups fail — 75 percent of them, to be exact, says The Harvard Business Review. So what goes wrong?

Failure doesn’t preclude you from ultimately succeeding

Unfortunately, not everyone is cut out to be an entrepreneur. Or at least, not by nature. To run a good business you have to be able to assume the proper role. If that means doing things and acting in ways that don’t come naturally, then so be it. Otherwise, you will risk failing like that 75 percent. Here are eight crucial points the pros agree are prerequisites to becoming a successful entrepreneur.

Take risks and be willing to fail

Failure doesn’t preclude you from ultimately succeeding — in fact, it’s often a necessary step. The best entrepreneurs don’t let the fear of failure prevent them from going for what they believe to be a great idea. Some of those risks won’t pan out, but the ones that do will be the ones that define you. READ MORE

By Carlla Keyl

Sourced from Medium

By Christian Juhl

People, not machines, remain the key to understanding the changing market.

One of the truly great things about advertising is that it is ever-changing.

It is an industry that requires continuous stewardship to meet evolving consumer behaviours and technological innovations – finding new, better and different ways to communicate, captivate and convert.

These worldwide lockdowns, and the dramatic impacts they have had, have forced advertising to dig deeper to identify relevant and appropriate ways to engage with consumers.

When there are more questions than answers, and universal uncertainty about what lies ahead, how do we provide the right guidance to our clients?

“Adaptability” and “pivoting” have quickly moved beyond buzzwords and become a foundation with which to approach our business.

Behind these business shifts, our people have had to adjust too.

These adjustments have made them acutely aware of the changing behaviours of consumers, the evolution of their needs and how they experience brands today versus even eight or nine short weeks ago.

The world is forever different and it’s on us to help our clients decipher what all of this means for brands; which shifts are temporary and which will be long-term.

This pandemic has also afforded our industry the chance to look in the mirror, fast-track our roles in the ecosystem and determine how we can best spend our energy to make advertising work better for people.

As Mark Read, chief executive of Group M’s parent company, WPP, recently said: “We’re seeing 10 years’ worth of innovation crammed into a few months.”

The big question is: what are we – media agencies – doing to continue to innovate for our clients, especially when no-one knows what’s next?

The decisions we made 12 weeks ago, before the coronavirus crisis gripped the world, don’t carry the same consequences they do now; the stakes are higher.

Few service businesses have the scaled expertise across categories to identify best practices in addressing changes to consumer sentiments, preferences and behaviours like media agencies.

We are in the unique position of having a fairly holistic view of the insights about shifts and trends in consumption, content and sentiment that are otherwise disparate and disconnected – giving us a thorough understanding of what has really changed.

When consumer habits and behaviours changed literally overnight, it was this unique vantage point that allowed us to quickly identify the optimal approach.

And, as marketing budgets were suddenly cut around the world, we maximised the intelligence our data and insights provided to make the remaining dollars work harder to achieve our clients’ business goals.

It has allowed us to optimise workflows across marketing functions and find new ways to work with media owners to maximise the value of a buy.

One of the truly great things about advertising is that it is ever-changing.

It is an industry that requires continuous stewardship to meet evolving consumer behaviours and technological innovations – finding new, better and different ways to communicate, captivate and convert.

These worldwide lockdowns, and the dramatic impacts they have had, have forced advertising to dig deeper to identify relevant and appropriate ways to engage with consumers.

When there are more questions than answers, and universal uncertainty about what lies ahead, how do we provide the right guidance to our clients?

“Adaptability” and “pivoting” have quickly moved beyond buzzwords and become a foundation with which to approach our business.

Behind these business shifts, our people have had to adjust too.

These adjustments have made them acutely aware of the changing behaviours of consumers, the evolution of their needs and how they experience brands today versus even eight or nine short weeks ago.

The world is forever different and it’s on us to help our clients decipher what all of this means for brands; which shifts are temporary and which will be long-term.

This pandemic has also afforded our industry the chance to look in the mirror, fast-track our roles in the ecosystem and determine how we can best spend our energy to make advertising work better for people.

As Mark Read, chief executive of Group M’s parent company, WPP, recently said: “We’re seeing 10 years’ worth of innovation crammed into a few months.”

The big question is: what are we – media agencies – doing to continue to innovate for our clients, especially when no-one knows what’s next?

The decisions we made 12 weeks ago, before the coronavirus crisis gripped the world, don’t carry the same consequences they do now; the stakes are higher.

Few service businesses have the scaled expertise across categories to identify best practices in addressing changes to consumer sentiments, preferences and behaviours like media agencies.

We are in the unique position of having a fairly holistic view of the insights about shifts and trends in consumption, content and sentiment that are otherwise disparate and disconnected – giving us a thorough understanding of what has really changed.

When consumer habits and behaviours changed literally overnight, it was this unique vantage point that allowed us to quickly identify the optimal approach.

And, as marketing budgets were suddenly cut around the world, we maximised the intelligence our data and insights provided to make the remaining dollars work harder to achieve our clients’ business goals.

It has allowed us to optimise workflows across marketing functions and find new ways to work with media owners to maximise the value of a buy.

We have helped clients identify how to transition their traditional businesses online to meet the needs of the stay-at-home economy by adapting best practices from direct-to-consumer and ecommerce-centric companies.

We have identified opportunities to optimise spending on short notice and shift resources across media channels – spending on out-of-home when suddenly no-one can leave their home offers a significantly lower ROI.

Optimising search, social and connected activities should be a top priority; everything that is addressable should be.

And, in places like China, where lockdowns have eased, we’ve done things like track road-traffic activity to identify when and where weekend travel has or has not returned to normal.

Many of these activities and habits established by consumers during this period will persist far into the future.

The collective ingenuity of this industry’s creative minds has been helping clients adapt and pivot to that too.

And by helping to improve clients’ offerings and connectivity to consumers, we help make advertising work better for people.

If there’s one thing I’m certain of “in these uncertain times”, it’s that the vibrant and talented people who fill our industry are the reason it will continue to flourish.

While detractors of agencies have often argued that marketing driven by machines is typically superior, it’s the campaigns led by people, adapted for people and pivoted around people’s emerging needs and interests that will ultimately rule the day.

By Christian Juhl

Christian Juhl is global chief executive of Group M

Sourced from campaign

Sourced from Seeking Alpha

Summary
  • Asos is an attractive opportunity in eCommerce due to its strong focus on the young adult segment and dominant presence in the UK, where competitor Zalando has a weaker footprint.
  • Gross and operating margin have been slightly better than Zalando, driven by its targeted go-to-market approach and a simpler business model.
  • Price could have been more attractive than 0.8x P/S, given the weak execution in recent times, negative cash flow situation, and COVID-19 impact.

Overview

The London-based Asos (OTCMKTS: ASOMY) (LON: ASC) is one of the eCommerce names we have been taking a closer look at for some time. The company has over 22 million active customers, with 70% of the €2.7 billion of revenue concentrated in the EU and UK, while the US made up 13% of the revenue. The company has differentiated itself by targeting the young adult segment, allowing the company to leverage a targeted go-to-market approach. Top-line growth and operating profitability have been steady over the last five years, though the business saw some operational challenges in 2019. While we believe that the long-term prospect as a +20% grower remains intact, we will maintain our neutral rating on the stock, for now, considering the potential near-term slowdown in operating and investing activities due to the COVID-19 situation.

Catalyst

In our view, Asos’ competitive positioning as an eCommerce business targeting young adults, or what the company claims to be a “20 something” niche, is an interesting long-term proposition. In addition to the sizable TAM behind the business, young adults, in general, have a greater tendency to be the early adopters of new trends, including those in fashion and online media. Consequently, this will allow the company to adopt a more targeted and differentiated marketing approach.

(Source: Asos’ instagram page)

While many mainstream eCommerce brands have been leveraging performance marketing through Google (GOOGL) or Facebook (FB), young adults have been shifting away to Instagram over the last few years. Asos has been taking advantage of this opportunity by making Instagram as its major marketing channel. Asos’ 10.4 million Instagram followers as of today, already represent almost 50% of its 22 million active customer base.

(Source: Zalando’s instagram page)

Asos’ total number of followers is also over 10x that of Zalando (OTCMKTS: ZLNDY), whose focus is more on the mainstream fashion.

(Source: tikr.com)

In our view, Asos’ targeted approach allows the company to deliver a more predictable and reliable ROI from a less-competitive alternative marketing channel, such as Instagram. Given Zalando’s mainstream focus and more diversified business model, its gross margin has also been trailing Asos by 700 – 800 bps on average, except for 2019. Asos’ targeted marketing, moreover, has played a role in keeping its operating margin steady at +4%. Zalando’s operating margin, on the other hand, is more volatile and has been between 2.2% – 5.4% in the last five years.

Risk

Considering its international ambition, Asos will remain a cash-burning company for some time. Net changes in cash have been in red, even in 2019, where the amount was already offset by the €75 million debt withdrawal to strengthen its balance sheet. In the last two years, it spent a combined sum of ~€200 million in CAPEX while only generating €184 million of OCF (Operating Cash Flow).

(Source: company’s HY 2020 slides)

These investments in warehouse assets and fulfillment centers are necessary, given that they will enable the company to provide a better delivery service while achieving better unit economics through better capacity utilization. Due to these investments, for instance, the US business, which also sees intense competitions, can now provide a next-day-delivery service. In Q1, however, the company announced the suspension of its CAPEX investment further, given the COVID-19 situation.

Valuation

Asos’ long-term prospect remains attractive due to its focus on the young adult segment and its strong brand reputation in the UK, where Zalando’s footprint is relatively weak. Asos is a third of Zalando in terms of revenue, though both companies have a similar level of operating profitability, with Asos leading in terms of gross margin. At a 0.8x P/S and a +20% growth prospect, we think that the price should have been a little bit more attractive given the management’s recent weak execution, negative cash flow situation, and also the potential downside ahead due to COVID-19. Zalando, the mainstream fashion market leader in Europe, trades at 2.2x with the same level of growth, stronger cash flows, and stronger execution, despite being three times as large as Asos. We will maintain our neutral rating on the stock, with a potential upgrade once the P/S drops to ~0.5x to create a more attractive entry point.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

Sourced from Seeking Alpha

 

By Mike Hambright

Branding: We either love it or we hate it.

As real estate investors, our brand and our message can be a deciding factor in whether a seller reaches out to us to potentially purchase their home. Before you ever speak to them, your brand speaks to them.

It’s important to think about how a seller sees your business. Think about your logo, your message, your website and any other marketing you’re putting out there. You have to stand out from the crowd.

Think about what you want your potential seller to know about you:

• Do you enjoy helping others who are in tough situations?

• Do you give any of your profits to charity?

• Are you locally based?

• Do you have a family?

• Do any of your family members work with you in the business?

• How long have you been in business?

• How easy is it to work with you?

• Are you able to assist with cleaning out the property?

• Is it OK if the property needs a lot of work?

Your branding should focus on the positive aspects of your business, with the seller in mind — not the money. They want to know that they can trust you.

On social media, anytime you post or share something on your business page, consider how it will be perceived by future sellers. This is a key reason many real estate investors have two brands or companies. One is for buying distressed properties, and the other is for selling those properties. When you think about it, your audience for both brands is drastically different, so it only makes sense to separate them.

For any marketing you do, ask yourself if your parents or grandparents would look at your mailer or other marketing piece and give you a call. Get their honest feedback. They’re usually part of your target market, and if there are areas of your marketing that turn them off, it’s important for you to know and to potentially make changes.

In addition to thinking of how your parents or grandparents would react, also consider reactions from those who have:

• Lived in their home for decades.

• Raised their kids in that home.

• Inherited the home from a family member.

• Struggled with health and finances and just can’t handle the upkeep of their home.

You can impact their lives for the better if you focus on the seller and solving their problems. When you build your branding around this (and it is true), a motivated seller will be more likely to reach out compared to a brand that’s not personal.

No matter what market you’re in, you need to stand out in a positive way. Having your brand and marketing showcase how you can help a seller out provides a positive first impression. If they reach out to you, continue providing value that is helpful to the seller. You might not get every deal, but helping as many people as you can will only yield positive results down the road.

Ask yourself now: Are your brand and your marketing showcasing your best features?

Feature Image Credit: Getty

By Mike Hambright

Mike Hambright is a real estate investor, mentor and coach, and is the Founder of FlipNerd.com and the Investor Fuel Mastermind.

Sourced from Forbes

Sourced from Crain’s Chicago Business

Influencers can often produce content faster and more cheaply than a TV ad campaign team, helping brands adapt faster as consumer circumstances change. Italian pasta company Barilla, whose U.S. headquarters is based in Northbrook, is a case in point.

(Bloomberg)—Advertising has mostly collapsed, but brands are still spending — just not on billboards, newspaper ads or TV spots. This has opened a new frontier for social media influencers, the newcomers to the ad game, that could help them bounce back when the crisis eases.

The great pullback in advertising budgets hasn’t been evenly distributed. Spending on platforms such as Facebook Inc.’s Instagram and ByteDance Inc.’s TikTok is down, even for influencers, just not as much as traditional media.

It’s partly about following the consumer. There’s not a lot of motivation to freshen up a billboard when streets are so empty. Cinema screens are dark, and there are hardly any commuters to read the free newspapers handed out at rail stations. However, social media usage has surged.

Though there’s still less impetus for, say, travel destinations to ink deals with social media stars when the airline industry has all but ground to a halt, some brands that would never have considered an arrangement with an influencer are giving them another look.

Before Covid-19, companies might have considered influencers, and their large fan bases, a “support mechanism” rather than something that’s central to brand planning, said Frances Sinclair, a strategy partner at Dentsu Group Inc. agency Carat. The sudden economic shock and lifestyle upheaval wreaked by the virus is changing that.

“We’re seeing brands shift their investment from more-traditional media channels, which might not make sense to them at the moment, to being in an influencer environment where the engagement is very real-time and ready,” she said.

It’s also important to change the content of a campaign to reflect the reality of life under lockdown. For example, standard ad campaigns featuring carefree, optimistic people mixing freely outdoors are on the back burner in a post-virus world marked by job insecurity, health fears and uncertain prospects.

Influencers can often produce content faster and more cheaply than a TV ad campaign team, helping brands adapt faster as consumer circumstances change.

Italian pasta company Barilla, whose U.S. headquarters is based in Northbrook, is a case in point. A year ago, the brand was wooing consumers with a glossy television spot which showed tennis champion Roger Federer cooking its spaghetti at a mansion reception with top chef Davide Oldani.

To craft a more appropriate message for their locked-down audience, Barilla’s marketers looked to social media star Chiara Ferragni, whose portraits modelling red-carpet dresses and pool-side leisurewear have drawn 20 million Instagram followers.

Recently, she’s been showing off her homemade Barilla spaghetti dinners instead.

“One of the reasons brands use influencer marketing in this moment is that it’s fast to activate and solved the issue of production that was on halt,” said Alessio Gianni, the company’s digital and content marketing director. “Content is more spontaneous, close to the people. Chiara, being Italian and locked at home as everyone else, cooked herself a carbonara. It was the best person to involve.”

Europe’s biggest pay-TV provider, Sky, has enlisted Dentsu Aegis influencer agency Gleam Futures to promote shows and movies to homebound families. Parenting Instagrammer Louise Pentland posted pictures to her 2.4 million followers showing her children contentedly watching “Trolls World Tour,” made by Sky’s parent Comcast Corp.

Sky is using digital channels like Instagram and getting near real-time feedback in a way it hasn’t before, said Dentsu’s Sinclair.

“Whereas once it might have been very much about the brand and the content, now it’s very much about the experience you have within your isolation,” she said.

Influencers were a rare bright spot in M&C Saatchi’s April market update, which cited “steady” business in the newer channel despite “a sharp drop in demand across the group.”

S4 Capital Plc’s CEO, Martin Sorrell, said some European clients started to change their thinking on influencer marketing that month, accelerating a digital transformation of advertising that was already underway. S4’s IMA agency has picked up work on an influencer campaign to promote HP Inc. laptops.

“We certainly saw that on the influencer side—so whereas I think it was pretty dead in the back-end of March, it got pretty lively as we got into April,” he said.

Influencer marketing can still be a minefield given how easily a brand campaign can appear cynical and turn off followers. With billions of people tiring of lockdowns and worried about coronavirus, companies can’t look like they’re seeking to profit from a miserable situation.

“A lot of the feedback the influencers receive from their audiences is: ‘How can you go on like everything is normal, saying to buy this candle, or this make-up?” said Robert Levenhagen, CEO of marketing software company InfluencerDB.

That’s limiting any boost the medium can receive from the current situation. M&C Saatchi’s Thompson said lots of social media stars are shunning commercial ventures in favor of charity and community work.

It’s taken years to convince many companies that there’s as clear a return on investment in influencers compared to TV or other forms of digital advertising. It’s been easy for influencers to buy “fake followers” and generate artificial engagement activity, making it hard to assess their true audience reach and impact.

There’s always the risk they’ll do something dumb that gets a company all the wrong kind of publicity. That’s made some traditional brands reluctant to jump in, according to Hayley Brady, a partner at Herbert Smith Freehills who advises companies on digital advertising.

In 2015 Kim Kardashian promoted a morning sickness treatment but failed to mention its side-effects, earning a reprimand from the FDA. Then there’s the bad behavior: YouTube star Logan Paul lost advertisers in a controversy sparked by posting a crude video which showed a dead body in a Japanese forest known for suicides.

Still, the ability of influencers to pivot quickly to match popular sentiment is what’s boosted their appeal for some brands in the current environment. This bodes well for their outlook when the worst of the pandemic is in the past.

“Influencer marketing spend will come back quicker,” said Dafydd Woodward, global head of INCA, the influencer division of WPP Plc’s GroupM. “It’s agile, because we can create content very very quickly that reflects the mood of the nation, and the messages that are being put out by governments.”

Sourced from Crain’s Chicago Business

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Amazon this week filed lawsuits in three states, aiming to squash what it describes as fraudulent affiliate marketing schemes driven by email campaigns purporting to come from the Seattle e-commerce giant.

The suits allege that companies in Georgia, Michigan and Texas wrongly used Amazon’s branding in spam campaigns designed to send traffic to fake Amazon-branded surveys run by online marketers. Those marketers then made money off advertising impressions, according to the suits.

It’s part of a broader effort by the company to crack down on fraud. In May, the company filed suit against companies in Washington state and India, alleging that they tricked new users of Echo speakers and other Alexa devices into paying for purported technical support. Other actions by the company have targeted everything from get-rich-quick scams to fake customer reviews to sales of knock-off products.

The latest suits were filed against Michigan-based companies Sendwell and Lakeshore Development Group; Georgia-based PhatLogic; Texas-based Omala Internet Solutions; and Germany-based SpreadyourAds.

“Amazon has no tolerance for schemes fraudulently using our brand, and we are appalled at these bad actors’ attempts to deceive our customers,” an Amazon spokesperson said in a statement. “We are advocating for customers by holding these bad actors accountable to the fullest extent of the law.”

Amazon says it has shut down the campaigns and has secured an agreement from the Michigan defendants to stop using the company’s brand.

The company filed a similar lawsuit last year against an Illinois-based affiliate marketing company, First Impression Interactive, and won prohibitions against use of the Amazon brand by that company.

Separately, Amazon says it has stopped a series of fake Amazon-branded email campaigns from companies and people in Colorado and California, with the people involved agreeing to stop using the company’s trademarks or brands

The affiliate marketing schemes are different than recent phishing scams that caught police attention last month, using purported Amazon branding to trick recipients into divulging personal information.

Amazon says customers should report unsolicited emails and texts here, and the company has more information about decoding suspicious emails, phone calls, and webpages here. The company has previously filed similar lawsuits to prevent scammers from fooling Amazon customers.

Feature Image: Amazon alleges that several companies fraudulently used its brand in affiliate marketing schemes to get consumers to fill out fake surveys. These images were included in lawsuits filed by the company.

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Taylor Soper is GeekWire’s managing editor, responsible for coordinating the newsroom, planning coverage, and editing stories. A native of Portland, Ore., and graduate of the University of Washington, he was previously a GeekWire staff reporter, covering beats including startups and sports technology. Follow him @taylor_soper and email [email protected].

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