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By TIM PETERSON

Quibi may be struggling to find its way forward, but Snap’s foray into short-form shows seems to be figuring it out, lifting revenue and sparking new programming expansion and innovation. Media companies have seen an ad bump for the episodic programs they air on Snapchat increase since March after Snap opened up shows to more ad dollars. And as show makers’ revenue is growing, so is Snap’s own slate.

At its virtual Partner Summit on June 11, Snap unveiled a group of new originals and announced several renewals with companies including Disney, NBCUniversal and ViacomCBS. The new shows include three that will incorporate Snap’s augmented reality technology, such as dance series “Move It” that uses AR to track viewers as they learn moves. “The potential there is pretty massive, the fact that you can put a user into a show, into the flow of the narrative,” said Sean Mills, head of content at Snap, in an interview.

In cases where people will be able to share a show’s AR experience as posts on Snapchat, that could help to attract more viewers and potentially other shows as well. A new menu bar that Snap is adding to the bottom of its app should also help to draw attention to the enhanced content. That menu bar— which Snap is calling an “action bar” — will feature a play button logo that people can tap to view the Shows section in Snapchat. Prior to the update, people had to swipe left to the Discover section, which featured a small callout notifying people to swipe left again to view the Shows section.

Snapchat is updating its app with a new action bar.

Even without the AR feature or menu bar, Snap has been able to grow viewership for shows. In the first quarter of 2020, more than 60 shows on Snapchat attracted at least 10 million unique viewers each month, compared to 50 shows in the fourth quarter of 2019, according to Snap’s most recent earnings report.

In addition to viewership, the business around Snap’s shows has also grown. Last year, Snap paid 60% more money to Discover partners than in 2018, according to a Snap spokesperson. That money seems to be trending up this year, as Snap has opened up new ad demand to shows that it licenses non-exclusively on a revenue-sharing model and the high end of its budgets for Snap Original shows has also increased.

In early May, Snap began inserting non-skippable Snap Ads within shows to fill any inventory left unfilled by its pricier six-second, non-skippable Commercials, according to a media executive. A Snap spokesperson confirmed that non-skippable Snap Ads can now run within shows but said that the only way for an advertiser to specifically buy Snapchat’s shows inventory is by buying Commercials.

The non-skippable Snap Ads—which usually cost around $2 per thousand impressions based on the CPM Snapchat reports to publishers, according to one media executive—do not bring in as much money per unit as the Commercials that usually run around $10 per thousand impressions. However, the increased fill rates has boosted the revenue that media companies receive, on average, per unique view from $1.50 in March to roughly $3 by late May, per two media executives.

Snap’s ability to fill ads in media companies’ shows has been a point of frustration among media executives. “We had a show for a couple years and didn’t make our money back because there was no required fill rate and we didn’t have direct sales capabilities. They don’t give a minimum [revenue] guarantee, just the rev share, so you take on the risk as a creator,” said a third media executive.

Not all show makers run that risk, however. Snap pays some companies upfront for shows that are then made exclusive to Snapchat as Snap Originals, which the platform introduced in October 2018. In the past, the budgets for these shows have ranged up to $50,000 per episode for scripted series, which had been considered the high end. “The high end of the budgets is probably increasing, but we still have budgets in a really significant range,” said Mills.

In addition to expanding its slate of shows and the money behind the programs carried on Snapchat, Snap has worked to broaden the audience for its shows. In January, Snapchat debuted “Players,” a Snap Original scripted show produced by Loud Media about a high school basketball player. While the show seems readymade for Snapchat’s younger audience, Snap suggested Loud Media create Instagram accounts for the show’s characters. “They understand the shows they’re creating exist for an audience that’s on a lot of different platforms,” Loud Media CEO and founder K. Asher Levin said in an interview earlier this year.

Mills thought the Instagram promotion had been Levin’s idea, but nonetheless championed it. “While our shows primarily live on Snapchat, we have some episodes posted on other platforms and we certainly have handles on other social media to build a brand and let people discover it other places,” he said.

Snap’s shows have also helped it to change advertisers’ perceptions of the platform. One agency executive had previously considered Snapchat to be a messaging app for high schoolers. But in a meeting a few weeks ago, Snap presented some of its shows, including its original series with Will Smith titled “Will From Home,” that the agency executive felt could appeal to a broader audience than Snapchat’s core base of teens and twentysomethings. More than 35 million people have watched “Will From Home,” according to a Snap spokesperson.

“Creating these episodes for the platform that you can’t necessarily get anywhere else is pushing Snapchat out of the boundaries of just kids sending dumb photos to one other. I was pleasantly surprised during the presentation,” said the agency executive.

By TIM PETERSON

Sourced from DIGIDAY

 

Qualtrics, Dublin, Ireland

Why Qualtrics?

Qualtrics is the technology platform that organizations use to collect, manage, and act on experience data, also called X-data™. The Qualtrics XM Platform™ is a system of action, used by teams, departments, and entire organizations to manage the four core experiences of business—customer, product, employee and brand—on one platform. Over 10,000 enterprises worldwide, including more than 75 percent of the Fortune 100 and 99 of the top 100 U.S. business schools, rely on Qualtrics to consistently build products that people love, create more loyal customers, develop a phenomenal employee culture, and build iconic brands. Qualtrics was recently acquired by SAP, and together we will accelerate XM and power the experience economy.  Join us on this adventure that can open many doors! Join a company that is dedicated to your ideas and growth, recognizes your unique contribution, fills you with purpose, and provides a fun, flexible and inclusive work environment.

Expectations for Success

You will have a track record of successfully managing paid search, paid social, display, retargeting, media buying, & landing page optimisation. You will leverage that experience to build and manage programs on all relevant digital advertising channels. Through careful tracking and optimisation, you generate demonstrably ROI-positive leads and fuel Qualtrics’ growth in EMEA.

A Day in the Life

  • Execute, manage and oversee all digital advertising including PPC, display advertising, remarketing, paid social, and other online advertising channels.
  • Manage day-to-day optimisation activities including building and managing bidding strategies, quality score improvements, ad copywriting, testing and optimisation, keyword research, budget forecasting, campaign reporting and analysis, and continuous program improvement.
  • Own measurement and tracking requirements for all digital advertising ensuring we can track all stages of the funnel and effectively report on ROI
  • Analyse and report on key performance data to marketing and sales team leaders.
  • Own cost-per-lead and cost-per-sale optimization, focusing on conversion metrics to drive increased campaign ROI.
  • Manage any key 3rd party vendor or vendor relationships
  • Work closely with marketing team members (content, social, customer marketing, etc.) to deliver a collaborative strategy and drive high- quality traffic to core site and landing pages.
  • Work closely with the web development team to create and manage landing page optimisation tests to increase conversion volume and quality.
  • Build a strong relationship with the sales development team and assist in lead follow up processes through training and sales enablement materials about digital marketing

Skills/Experience Required:

  • Passionate about digital marketing and enthusiastic to learn
  • Bachelor’s degree in marketing, analytics or related subject
  • Passion for data analysis and working towards a clearly defined metric

Skills/Experience Desired:

  • 3-4 years well rounded digital marketing experience
  • Agency experience will be a plus
  • Experience working with Marketo/Salesforce
  • Google Adwords Professional certification
  • Ability to speak additional languages a plus
  • Experience working with bid management tools a plus
  • Experience of running campaigns across multiple countries / languages
  • Experience working with Qualtrics a plus

Qualtrics is an equal opportunity employer

Qualtrics provides equal employment opportunities (EEO) to all employees and applicants for employment without regard to race, colour, religion, gender, national origin, sexual orientation, gender identity or expression, age, disability, genetic information, marital status or veteran status.

To learn more about what we value read about it directly from our employees Qualtrics Life stories

Click HERE to apply for this job.

 

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