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The future of marketing on cellphones is all about branded content over advertising

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The future of advertising via people’s cellphones is more about branded content – or ads that look like editorial articles – over internet display ads, a new report by researcher WARC suggests.

Businesses are still grappling with how to advertise to people via their phones, with 380 million mobile devices using ad-blockers worldwide. Consumers are blocking ads on their cellphones in greater numbers than on PCs, with 236 million desktop devices using the software, according to analytics company PageFair’s most recent statistics, published in February.

More than half (55 percent) of the North American marketers WARC surveyed cited mobile-based branded content as a main focus of their marketing in five years’ time, with 47 percent of those in the EMEA region stating the same.

Meanwhile, only 19 percent of North American marketers said mobile internet display advertising would be a focus for future marketing, and 25 percent of EMEA marketers said the same.

This is partly because of new cellphone screen designs, WARC reported. “This is likely to stem from the expectation that screens and devices will become increasingly suited for consuming longer-form content, with mobile-optimized websites the norm,” it stated.

Businesses are also likely to be spending their marketing dollars on making sure their websites are high on Google mobile search results, with 33 percent of North American marketers predicting that this would be a focus in 2023 and 38 percent of EMEA marketers saying the same.

Going mobile

People are spending increasing amounts of time looking at websites on their smartphones. In 2012, the average amount of time people browsed online using their cellphones was 1 hour 17 minutes a day, and in 2017 that had risen to 3 hours 2 minutes daily, according to WARC.

TV is still the number one medium for advertising, with $138.3 billion spent this year, according to WARC data from 12 countries including the U.S., Brazil, China, Japan and the U.K. Advertising via mobile phones comes second, with $98.3 billion spent this year, ahead of desktop ads for the first time with $77.8 billion.

Marketers using other media for advertising are also experimenting with how best to communicate with people. Earlier this year, Viacom‘s Comedy Central TV channel started running two-and-a-half minute branded content spots once a month, instead of a series of shorter ads. It created a “Handy the Series,” short comic skits in which different brands could feature. Viewers don’t mind watching ads as long as they are entertaining, according to Chris Ficarra, Viacom Velocity’s executive vice president of integrated marketing.

“Let’s make them laugh,” is the channel’s approach, Ficarra told CNBC in February via email.

WARC’s report surveyed 616 marketers from brands and agencies in North America and EMEA online for its Global Ad Trends report published this week. WARC also sourced data from research partners in 12 countries.

Feature Image Credit: Westend61 | Getty Images

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Sourced from CNBC

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You Will Sell More to Millennials and Centennials by Personalisation of Your Marketing

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A new report finds that nine out of ten marketers need help improving their personalisation strategy.

By MediaStreet Staff Writers

Personalisation is a good strategy for engaging consumers of all ages, BUT younger consumers find it especially important. Nearly half of centennials, age 18-21, (45 percent) and millennials, age 22-37, (49 percent) make purchases because of the level of personalisation within a brand’s email content, meaning that personalisation translates into revenue

This is according to a new study, which shows that two in five marketers don’t tailor their initiatives to audiences of different age groups. So, marketers potentially miss out on substantial engagement opportunities as consumers demand more customised content.

The report found that just 11 percent of marketers claim they can personalise all content. The study also found about only 27 percent can execute basic personalisation tactics, such as using a customer’s name or birthday. Another 26 percent can personalise based on browsing or purchase history, but say it’s tedious to do so. And 17 percent of marketers state they cannot personalise content because they still have trouble collecting and analysing data.

“Personalisation isn’t limited to a customer’s name; and marketers who go beyond this simple data point in order to customise communications will reap the benefits,” said Michael Fisher, president of Yes Lifecycle Marketing. “Marketers should tailor content to their customers’ habits and demographics. Fairly easy-to-implement adjustments, such as triggered campaigns and lifecycle messaging, will go far.”

Of the brands that personalise content based on age, two-thirds do so via email. Social media (38 percent) and website (35 percent) are the three channels that marketers are most likely to personalise content based on age.

“The takeaway from the data is obvious: consumers want marketers to personalise content based on their individual characteristics and attributes, and marketers still struggle to do so,” said Michael Iaccarino, CEO and chairman of Infogroup. “To alleviate personalisation woes, marketers need a partner that can help them enhance and leverage their customer data in order to improve personalisation, and as a result, increase revenue.”

Additional findings from the report include:

  • Less than a quarter of marketers personalise display (24 percent) or direct mail (23 percent) content based on customer age.
  • Driving revenue (40 percent), acquiring new customers (24 percent), and engaging customers (17 percent) are the three biggest priorities for marketers heading into 2018.
  • Only 16 percent of marketers believe millennials are most influenced to purchase by the email channel; yet 67 percent of millennials report finding email valuable when researching products.

To learn more about how marketers can personalise content by age, download the full report here.

 

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Why do Online Shoppers Abandon Their Carts Right Before Paying?

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By MediaStreet Staff Writers

Shoppers hoping to bag a bargain in the post-Christmas sales are much less likely to go through with their purchases if they are using phones and tablets to buy goods online. This is because consumers often worry they are not seeing the full picture on a mobile app or that they could be missing out on special offers or overlooking hidden costs, according to new research. Concerns about privacy and security can also motivate people to put items into their shopping baskets but then quit without paying.

Although mobile apps are rapidly becoming among the most popular ways to shop online, the phenomenon of shopping cart abandonment is much higher than for desktop-based online shopping. According to Market Research firm Criteo, the share of e-commerce traffic from mobile devices increased to 46% of global e-commerce traffic in Q2 2016. However, only 27% of purchases initiated on this channel were finalised and conversion rates significantly lagged behind desktop initiated purchases.

Researchers at the University of East Anglia (UEA) investigating why this is so say it represents a huge challenge for online retailers, who are investing heavily in mobile shopping, but not reaping the rewards in successful sales.

“Our study results revealed a paradox,” said Dr Nikolaos Korfiatis, of Norwich Business School at UEA. “Mobile shopping is supposed to make the process easier, and yet concerns about making the right choice, or about whether the site is secure enough leads to an ’emotional ambivalence’ about the transaction – and that means customers are much more likely to simply abandon their shopping carts without completing a purchase.”

The researchers studied online shopping data from 2016-2017 from consumers in Taiwan and the US. They found that the reasons for hesitation at the checkout stage were broadly the same in both countries. In addition, shoppers are much more likely use mobile apps as a way of researching and organising goods, rather than as a purchasing tool, and this also contributes to checkout hesitation.

“People think differently when they use their mobile phones to make purchases,” said Dr Korfiatis. “The smaller screen size and uncertainty about missing important details about the purchase make you much more ambivalent about completing the transaction than when you are looking at a big screen.”

Flora Huang, the study’s lead author, added, “This is a phenomenon that has not been well researched, yet it represents a huge opportunity for retailers. Companies spend a lot of money on tactics such as pay-per-click advertising to bring consumers into online stores – but if those consumers come in via mobile apps and then are not finalising their purchases, a lot of that money will be wasted.”

The team’s results, published in the Journal of Business Research, showed that consumers are much less likely to abandon their shopping baskets if they are satisfied with the choice process. App designers can help by minimising clutter to include only necessary elements on the device’s limited screen space and organising sites via effective product categorisation or filter options so consumers can find products more easily.

Other strategies that might prompt a shopper to complete a purchase include adding special offers, or coupons for a nearby store at the checkout stage.

“Retailers need to invest in technology, but they need to do it in the right way, so the investment pays off,” added Dr Korfiatis. “Customers are becoming more and more demanding and, with mobile shopping in particular, they don’t forgive failures so offering a streamlined, integrated service is really important.”

 

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Want to Sell More Online Products? Make Delivery Free

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This is fascinating stuff.

By MediaStreet Staff Writers

A new study has revealed the true cost of delivery to retailers, with more than half (54%) of shoppers surveyed saying they have abandoned a purchase online because delivery was too expensive.

-83% of online shoppers said free delivery was the most important factor when ordering online

-More than half (54%) have abandoned online shopping baskets because of delivery costs

-A quarter cancelled orders because delivery wasn’t fast enough for their needs.

The original research of 2,000 shoppers by Arvato found that the majority (83%) said free delivery was the most important factor when it comes to fulfillment of online orders, followed by speed of delivery (53%) and free returns (52%).

This rang true for basket abandonment too, with nearly a quarter (24%) of shoppers saying they had cancelled an order because of slow delivery speeds, while 26% said that the product had been out of stock and, with no indication of when it would be available, they decided not to proceed with their purchase or shop with another retailer.

When it comes to fulfillment, 45% said that convenience was the most important factor, with 17% saying they liked to be offered multiple delivery options. 56% of shoppers already use the ‘buy online pick-up instore’ (BOPIS) option, but while only 11% currently use two hour BOPIS options offered by retailers, 32% said they would like to see more retailers offering one or two hour collection spots for BOPIS purchases going forward.

Ferka Vukel at Arvato said: “Delivery isn’t just about fulfillment but an integral part of the decision-making process for the online shopper. Those retailers who are not offering a fast, convenient and, crucially, free delivery service are at risk of losing out. With retailers having to balance the rising cost of fulfillment against the cost of losing an order, there is no easy answer, however one thing all retailers can do is to be transparent, giving customers an estimated delivery cost from the outset to avoid frustration at the end of the shopping journey.”

According to Vukel, the importance of delivery will not diminish over time and may, in fact, become even more significant to buyer behaviour in the future.

She explained: “Our research shows that within five years, shoppers expect retailers to offer up increasingly innovative delivery solutions – 7% wanted to see driverless vehicles or Uber drivers doubling up as carriers to get their products to them and a further 17% want orders from multiple retailers to be delivered in one go.”

Amazon’s Prime Air has also captured the imagination with 13% of shoppers wanting to see adoption of drone deliveries from retailers, while 11% wanted ‘drive thru’ collection lockers and 8% even thought that retailers should offer ‘to device’ delivery, where an item is delivered to a customer by using their smartphone or tablet to geo-locate them.

What’s more, 12% would be happy sharing their finger prints with retailers so they can ‘sign’ for deliveries with their finger print for more secure deliveries

“At the moment innovations such as drone delivery are more about capturing consumers imagination than reality, but what we are seeing from consumers is that speed, cost and convenience are imperative when choosing to shop online and that is something that is not going to change any time soon,” concluded Vukel.

 

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Don’t Use Images of Hot Men to Sell Anything to Men

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You are probably wasting your ad spend.

By MediaStreet Staff Writers

The male response to depictions of ideal masculinity in advertising is typically negative. This has implications for advertisers and marketers targeting the increasingly fragmented consumer demographic.

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So be very wary of using hot guy images to sell anything to dudes. This is according to research from a University of Illinois marketing expert, Cele Otnes, a professor of advertising and of business administration who studies how marketing and advertising shapes consumption. She says that men who compare themselves to the hyper-masculine or over-exaggerated male stereotypes in advertising and popular culture experience a range of emotions, including feelings of inadequacy and vulnerability.

“While partying and promiscuity are often depicted in advertising, some men find these images to be negative portrayals of their gender and are, in fact, turned off by them,” said Otnes. “So it’s important to recognise that some men may react negatively or be adversely impacted by such images.”

According to the research, six themes emerge from the analysis that reveal how men respond to ad depictions of ideal masculinity. Half of the themes – skepticism, avoidance and indifference – are negative, while the others – enhancement, striving and chasing – skew positive, with men seeing advertising as more of a motivational tool to enhance a certain aspect of themselves.

Although much research has examined the negative impact of advertising depictions on women and children, very little is known about the impact on men, Otnes says. “The research is a first step toward developing an in-depth understanding of the responses and meanings appropriated to masculinity by Generation X consumers,” she said.

It also holds implications for advertisers and marketers, who can use the contributions from the research to “employ masculine themes in advertising more effectively and ethically,” Otnes says. “As much as academics and some practitioners have called for responsibility in media messages targeting women and girls, attention also should be paid to men and boys,” she said.

According to Otnes, men’s responses to ads, as well as their consumer behaviours in general, are issues that are especially relevant in today’s marketplace. It is more important than ever for advertisers and marketers to “find ways to appeal effectively to the male segment, and to do so in an ethical manner,” she said.

“People build up certain offensive and defensive strategies when they look at ads,” Otnes said. “If they feel threatened by an ad, it may actually bleed over into the way they feel about that product. So if a man is turned off by how males are portrayed in an advertisement, he’ll say, ‘I don’t want to be that guy’ ” – and that’s the end of his relationship with that brand. So teasing out what’s offensive from a sociological or cultural perspective is important.”

The male market demographic is “way, way more fragmented” than once believed, Otnes says. “A lot of ads directed at males are still dominated by ‘The Player,’ ‘The Beer Drinker’ or ‘The Buddy,’ ” she said. “But those stereotypes don’t actually fit the vast majority of males. Advertisers and marketers need to broaden the spectrum, and create campaigns centred on more of the actual roles that men play – ‘The Dad,’ ‘The Husband’ and ‘The Handyman.’ Those types of ads weren’t easy to find at the time we were doing our research.”

 

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KPMG Australia steps up the battle of the consultancies with launch of CMO advisory business

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By Danielle Long

KPMG Australia has become the latest management consultancy to launch a specialist marketing advisory team targeting chief marketing officers.

KPMG has appointed Carmen Bekker as a partner to launch its CMO advisory team, which is part of the firm’s customer, brand & marketing advisory business.

Bekker brings 20 years experience working on leading international brands in the UK, Europe and Australia. Her previous roles include management partner and European marketing director for J Walter Thomson London as well as business director at Saatchi & Saatchi in London and Sydney.

Bekker said her role was to help CMOs and brand leaders to grow their businesses by providing new perspectives and leveraging best international practice, however, she also plans to focus on championing diversity.

“CMOs and brand leaders have a huge responsibility to consistently deliver and innovate for their organisations in today’s rapidly changing environment. They face challenges from global trends as they navigate the new world, including media transparency, marketing spend accountability, and creating meaningful customer engagement.

“I will champion diversity within the wider industry with a focus on female leadership, and also on diversity in the work that brands create when marketing to customers. Australia has all the ingredients to be an innovative leader within the global marketing sector, and I look forward to playing a role in this at KPMG,” she added.

Bekker is the latest senior hire to join KPMG’s customer, brand & marketing advisory business, which launched in June following the firm’s acquisition of research company Acuity Research and Insights.

The division also includes former Google industry leader for mobile and new business development Lisa Bora, ex-Virgin Australia chief customer officer Mark Hassell and former Telstra GM of Business to Business IT Melanie Evans.

Paul Howes, partner in charge of KPMG’s customer, brand & marketing advisory, said the division had experienced “rapid growth” since launching. “Our practice has proven there is increasing demand for new approaches in Australia’s marketing landscape. The launch of a new CMO Advisory practice under Carmen will take our business to the next level as we move into 2018.”

Consultancy companies have been ramping up their marketing divisions across APAC this year. PwC has appointed a host of former advertising executives to its CMO advisory including former Network Ten executive general manager Russel Howcroft who joined as chief creative officer in 2016. It also follows Accenture’s acquisition of creative hotshop The Monkeys earlier this year.

By Danielle Long

Sourced from THEDRUM

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Putting a Human Face on a Product: When Brand Humanisation Goes Wrong

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Branding was never an easy task, but here’s something new to look out for.

By MediaStreet Staff Writers.

When companies put a human face on their brand, the public usually responds positively. This advertising approach has brought us alarm clocks with sleepy faces and colour-coated chocolate candies with legs and arms.

But a study conducted by Oregon State University showed that there is a greater backlash by the public when a product branded with human characteristics fails.

Lead author of the study, Marina Puzakova, said even though consumers can tell a camera designed with human characteristics such as little eyes and legs isn’t a person, the very act of humanising a product can be a powerful tool.

A humanised product (left) versus a non-humanised product.

“Somehow, now the product seems alive and mindful, and therefore can be perceived as having intentions and its own motivations to act in a certain way,” Puzakova said. “This perception of intentions can be extremely strong – consumers now see the brand as performing bad intentionally and therefore consumers develop more negative sentiments toward the brand.”

Puzakova conducted five experiments with products that had experienced negative publicity. As a general procedure, participants saw advertisements of both existing and fictitious products, where “human” characteristics, such as arms, legs, or facial-like features were manipulated. Then Puzakova showed participants news reports about how the product had failed in some way, not lived up to its advertising claim, or did not function based on consumer expectations.

In every instance, participants reported that they had stronger negative reactions to the products that were given human characteristics, also known as “brand anthropomorphisation.”

“Brand anthropomorphisation can be a very powerful advertising tool, so I am definitely not saying that companies shouldn’t use it,” Puzakova said. “However, they need to be aware that when they imbue their products with human-like characteristics, any backlash when something goes wrong could be stronger.”

Puzakova’s study found that the strength of negative reactions depended on consumer personality differences as well. Based on a personality test she gave participants, she found that people who believe in “personality stability,” or that personality traits are always the same and don’t change over time, tended to have stronger negative feelings towards anthropomorphised brands.

“Broadly speaking, men tend to believe in personality stability more than women, and seniors as well,” Puzakova said. “Also, some cultures tend to believe in this more than others. This can be important for advertisers to know, depending on who their target market is.

Having a deeper knowledge about their target markets, companies can also design their advertising communications tailored for different types of consumers. For example, marketers may want to emphasise flexibility and change in an ad campaign in order to reverse negative attitudes by male consumers, who tend to believe in personality stability.

Puzakova’s research also has a lesson for companies whose brands fail because of a product malfunction.

“As consumers who believe in stability of personality traits react to product failures more negatively, our research finds that companies need to provide either monetary compensation or give away coupons,” Puzakova said. “Offering a public apology is not enough. For instance, companies that have a humanised brand marketed heavily towards seniors may need to be prepared to generously compensate those consumers if something goes wrong.”

The bottom line, Puzakova said, is companies need to know their audience and the possible dangers of humanising a brand when a product malfunctions. It can be a powerful advertising tool, but if the product fails in some way, the damage control could be costly and timely.

 

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Most Online Shoppers Don’t Write Product Reviews, But Do Rely on Them When Considering a Purchase

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By MediaStreet Staff Writers

How can you get your customers to write more online reviews?

Most online shoppers (81%) do not write reviews of their purchases, according to a new survey by Clutch. However, many of those same online shoppers say they rely on product reviews when considering a purchase.

E-commerce businesses face the challenge of growing the approximately 20% of online shoppers who regularly write reviews, since online shoppers often rely on reviews to make purchasing decisions. The study suggests the gap is an opportunity for e-commerce businesses to engage more online shoppers and address the reasons why they typically don’t write reviews.

Email marketing is an effective strategy for garnering reviews, prompting nearly one quarter (23%) of shoppers to write reviews. However, online shoppers cite lack of time and incentives as key reasons for their unwillingness to write reviews.

E-commerce businesses can potentially reverse that unwillingness with simple changes to their review gathering process. For example, businesses should ensure that the review process is as efficient as possible by requesting specific feedback through guided questions or star ratings.

Incentives, such as a discount or contest entry, can also help secure more reviews. However, companies should be aware of any local laws that prohibit exchanging incentives for favourable reviews.

Timely and effective customer service, including resolving an order issue or complaints, can also increase the likelihood of garnering reviews. Shoppers are more motivated to write positive reviews than negative ones: One third (33%) of online shoppers who write reviews share an especially satisfying experience, compared to 2% who write about negative experiences, according to the survey.

Experts say companies should use the review-gathering process to give customers the opportunity to alert them early on to problems that could undermine their satisfaction.

“If any issues arise within that initial use of the product, you can usually remedy the situation and put a stop to anything that might put a damper on positive reviews,” said Dan Scalco, CEO of Digitalux, a digital marketing and SEO agency.

Let’s get those happy customers reviewing your products ASAP.

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Millennials Trust Social Media Influencers Less

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By MediaStreet Staff Writers

Millennials rely on social media influencers more than ever for fashion shopping ideas and inspiration, but say they trust them less.

This is according to a Dealspotr survey of Millennial shoppers, conducted to better understand the shifting dynamics between consumers, lifestyle influencers and retailers in today’s digital economy. They say, “Perhaps more than any other industry, fashion retail has been upended by social media and the rise of digital influencers. Millennials are increasingly reliant on social media and the influencers who dominate them to curate trends, new brands, and the styles they wear.”

This year’s edition, Dealspotr’s Millennial Fashion Shopping Study, underscores some surprising shifts in Millennials’ perceptions of social media influencers. Notably, in 2017, Millennials are starting to trust influencers less than they used to. Millennials are also becoming more sophisticated in how they evaluate influencers – a previously important indicator of trust, an influencer’s number of followers, is now largely ignored by this demographic. At the same time, Millennials are now more reliant than ever on lifestyle influencers for fashion ideas and inspiration, creating a critical yet challenging landscape for fashion brands to navigate.

“Millennials now trust social media influencers more than their friends and family for fashion picks and recommendations,” says Michael Quoc, founder and CEO of Dealspotr. “However, as the influencer economy matures, brands must be hyper-aware of shifting perceptions and increasing skepticism towards online influencers when crafting an influencer marketing strategy.”

Highlights from the report:

  • Social media influencers are now the #1 factor driving fashion shopping decisions among female Millennials (41% selected as their primary influence). Lifestyle influencers now have greater impact than more traditional factors such as friends and family (37%), TV / magazines / advertisements (20%) and celebrities (19%).
  • At the same time, 52% of Millennials say they trust social media influencers less these days.
  • Millennials no longer judge influencers by their number of followers. Only 7% primarily care about an influencer’s number of followers, far outweighed by the influencer’s sense of style (60%).
  • Millennials are extremely price conscious when it comes to fashion brands. 70% of Millennials say price and value are the most important attributes of a fashion brand, above the brand’s style at 43%.
  • 36% of Millennials say the availability of a discount code is their primary factor determining whether they would try purchasing from a new or unfamiliar fashion brand.
  • 65% of Millennials primarily make fashion purchases in-store, compared to 41% who primarily buy online.

 

To download the full report, click here.

 

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Advertisers Should Tie Their Ads To Major Life Events

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Want more traction in your marketing efforts? Then think births, deaths, and marriage.

Online social networking has revolutionised the way people communicate and interact with each other. This is despite all the annoying things that come with it (just think of all those articles complaining about the top ten most annoying habits on social media.)

Not only does social media make us happy and annoyed, there’s advantages to using it. For example, reconnecting and gossiping with old friends about babies, birthdays and baptisms/christenings.

A new study from the University of Notre Dame’s Mendoza College of Business examined the impact of major life events, such as getting married or graduating from college, on social network evolution. And the researchers say that the results have important implications for business practices, such as in marketing.

The study shows that major life events not only get more social media attention overall, but also bring long dormant connections back into social interaction.

Researches Hong Guo, associate professor of business analytics, and Sarv Devaraj, professor of business, and Arati Srinivasan of Providence College, specifically focus on two key characteristics of individuals’ social networks: indegree of ties and relational embeddedness. Indegree is the number of ties directed to an individual. Those with high indegree centrality are assumed to be the most popular, prestigious and powerful people in a network due to the many connections that they have with others.

“We find that the indegree of ties increases significantly following a major life event, and that this impact is stronger for more active users in the network,” Guo says. “Interestingly, we find that the broadcast of major life events helps to revive dormant ties as reflected by a decrease in embeddedness following a life event.”

Relational embeddedness is the extent to which a user communicates with only a subset of partners. Social networking sites allow users to manage a larger network of weak ties and at the same time provide a mechanism for the very rapid dissemination of information pertaining to important life events such as engagements, weddings or births.

“We show that major events provide an opportunity for users to revive communication with their dormant ties while simultaneously eliciting responses or communication from a user’s passive or weak ties,” Guo says. “Increased communication with weak ties thereby reduces the extent of embeddedness. We also find that one-time life events, such as weddings, have a greater impact than recurring life events like birthdays on the evolution of individuals’ social networks.”

So why does this matter outside of our social media circles?

“Knowing this, advertisers may better target their ads to major life events. For example, a travel agent marketing a honeymoon package can target a user who has shared that they just got married,” Guo says. “From the social networking sites’ perspective, various design features may be set up to enable and entice users to better share their life events, like how Facebook helps friends promote birthdays.”

So, you might want to think about your next marketing campaign. Does it tie in with big life events? No? Then get on that.

 

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