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The world’s largest agency group, WPP, has dismissed the apparent threat from consultancies such as Accenture and Deloitte which have begun to acquire creative shops to grow into the advertising and design sectors to service their clients.

While releasing its latest financial results, the WPP statement addressed the changing nature of the advertising market, highlighting three ways in which the industry is changing. On the rise of tech and search platforms such as Google (understood to now be WPP’s largest partner), Facebook and Amazon, it said that the former two companies had, in recent times, become “friendlier” as they have become key media partners for the network that is an important client to each entity. Another change the report spotlighted was client consolidation by major companies such as Unilever and P&G, probably the most important change taking place at the moment, forcing consolidation within the networks and cost cutting to match the lower budget spend from each FMCG conglomerate.

The third change was with the consultancies moving into the space by acquiring “small agencies” and talent. The report stated that only “two or three” such businesses were currently capable of competing.

It continued: “Most agencies report, including ourselves, that even when they do compete directly with the consultancies on digital projects, the win/loss records are consistently strong, particularly given the continuing importance of the creative dimension for success.”

It then continued to question whether such companies were capable of buying a culture of creativity and claimed that the press had “wildly” overestimated their digital marketing revenue in comparison to the holding companies and agencies.

“Where the consultancies may have made some inroads is their focus not so much on the digital area, but more importantly on client concerns about cost. Very few CEOs will resist the suggestion that they may be overspending and the promise of an audit or review that will only cost a proportion of any cost savings generated or a contingency fee,” the report said. “So, it may well be, that consultant activity is having some impact, not so much in the digital area, but more because of an emphasis on cost containment.”

WPP reported an increase in revenue of 1.1% at £3.649bn for its third quarter and reported revenue up 8.9% at £11.053bn for the nine month period overall.

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Sourced from THEDRUM

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For a medium that commands over 50% of total UK ad spend, online advertising is but a babe in the firmament of media.

At the age of just 22 – despite its many well-documented growing pains – digital media has become by far the biggest line item on marketers’ media plans, largely due to its targeting and accountability credentials.

Let’s compare and contrast with outdoor advertising – we’re talking the oldest medium in the world here. The ancient Egyptians used papyrus to make sales messages on wall posters; and political campaigns have even been found in the ruins of Pompeii. Wind forward to the 1790s and the invention of lithography was the launchpad for mass produced billboards, and by the 1860s the first outdoor advertising trading companies were formed.

Unlike the rest of the print sector today, outdoor advertising revenue has been unaffected by the unrelenting rise of online advertising. In fact, it’s going through a digital renaissance which I believe will spur healthy growth in the sector, and put a shot in the arm of classic brand advertising, which has undoubtedly suffered at the hands of online performance media.

There are two key reasons for the current decline in brand advertising

The first dates back to the recession. In 2009 – when a whopping £2bn was wiped off the nation’s collective media plans – search advertising was the only format to grow (by 9% if my memory serves me correctly). Every scrap of spend came under the FD’s microscope, and while traditional display media suffered double-digit cuts, the easily trackable ROI from search powered its stellar growth to command the £5bn is does today.

The second major reason is generational. Media planners are nearly all millennials (at iCrossing the average age is 31), and they live and breathe mobile and social media. So with increased sales and measurable results at the centre of every client brief, the candy of online performance marketing increasingly trumps the classic branding approach.

The question is, have these two dynamics combined to create a whole generation lost to the art of brand building?

Back in 1986, at the age of 26, I became the assistant advertising manager at (now long gone) Visionhire. In those days, dear readers, half the living room tellies and nearly all the VCRs were rented. I’d read ‘Ogilvy on Advertising’, which extolled the virtues of brand and response techniques, then largely confined to coupons in the press, nascent direct marketing and promotion at point of sale – all known as ‘below the line’ techniques. All the big money went ‘above the line’, which offered two commercial TV channels, a huge audience for the press, plus some radio and outdoor. Media fragmentation wasn’t a thing in those days. Hence the long, boozy agency lunches.

But we learnt to totally respect the branding cycle – how long it took to plan, produce and execute a campaign. And how long it would take to build awareness, consideration and purchase intent; usually several months, which was also the typical timescale for the squeaky-bum presentation from Millward Brown who delivered our Awareness Index (AI) scores on the doors, against direct competitors.

Digital Out Of Home will inspire today’s young planners

Being ever the optimist, I don’t truly believe the wonderful art and science of brand building will be lost on today’s millennial marketers and media planners. I happen to believe that the oldest medium – now reborn as Digital Out Of Home (DOOH) will be a catalyst for growth in brand advertising, offering many of the accountable attributes of online display media and hardly any of the current brand safety and ad verification challenges.

Here I’d like to congratulate JCDecaux, who filled the Hansom Hall at St Pancras for their impressive Digital UpFronts presentation this month. First off – credit to JCD for repositioning their brand alongside the big pureplays and setting out their DOOH stall for the buyers, now that it accounts for nearly half of all outdoor revenue. And it’s growing at +30%.

The story is compelling.

98% of the population sees an out of home ad each week, and for millennials it’s easily number one for reach and time spent, according to IPA Touchpoints. As a subset, DOOH offers 49% UK reach with 1.3bn weekly viewed impressions.

That little word ‘viewed’ is music to the marketer’s ears. Digital outdoor is brand safe, there’s no ad fraud, and there’s no such thing as a non-viewable impression. And, they say, 99.5% of those impressions are generated by just four different aspect ratios, all offering video and animation in nice, large formats.

But the kids want programmatic! Step forward the JCDecaux SmartBRICS self-serve planning and buying platform which currently caters for half of the UK’s DOOH estate. Planners can set parameters down to street and frame level, complete with day-parts, numbers of impressions and ratings. They can even ad rules connected to the weather, or deliver moderated tweets as part of the creative. And post campaign, your viewed impressions report is independently verified by PwC.

Now if the delights of DOOH don’t reignite the branding buds of today’s marketers and planners, I’ll eat my best socks. It’s certainly inspired iCrossing’s media strategist, Lauretta Wood who seeks programmatic perfection by joining outdoor with mobile. Growth over the next few years is easy to predict, and the prospect of high visibility, high reach, location-based video ads is surely a no brainer for the contemporary advertiser.

Just imagine the enhanced effect when you sprinkle a bit of mobile and data over the creative for the perfect match between the oldest and the newest media? We’ll see more high profile award winners like the BA #Lookup campaign at Piccadilly Circus.

Then the generation lost to planet brand will surely come back in in to land.

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Guy Phillipson is the chairman of iCrossing UK and the former CEO of the Internet Advertising Bureau UK.

Sourced from THEDRUM

By Jeff Beer

To call R/GA an ad agency is a bit misleading. Sure, it’s created award-winning ad work for brands like Nike, Beats and Samsung, but over the years the company has also branched out to include a venture practice, business consultancy, design and more. In an industry that’s quickly and constantly changing thanks to technological innovation and consumer behavior, R/GA chairman and CEO Bob Greenberg sees self-disruption as a key business operating principle, one that has served the company well in the past and will ensure its survival in the future.

Speaking at the  Fast Company Innovation Festival, Greenberg outlined how this strategy has always been a part of the company. Founded in 1977 as a computer-assisted filmmaking company, R/GA has evolved beyond motion graphics and a digital studio, into an interactive agency, and now a consulting and ventures practice, all while creating award-winning work for brands around the world.

[Photo: Jeff Beer]

“Disrupting the agency business is something we feel pretty confident in. We’re helping clients grow, and we do it through connected communication and connected design, but we always have to explain that we’re very interested in storytelling,” said Greenberg. “It shouldn’t be because we’re talking about digital things, that we’re not interested in storytelling. I think we’re very evenly balanced throughout our agency capabilities around the world with systematic designers and storytellers.”The company works well outside the traditional ad agency purview—it has an ongoing tech venture program partnership with the L.A. Dodgers, for instance–while still pushing boundaries in marketing work with projects like a Twitter series for Converse starring Miley Cyrus and Game of Thrones‘ Maisie Williams. For Greenberg, the key is to never view the company as a finished product.

“At best, we like to think of ourselves as an 80% company because we feel that if you’re 100% you’d be like the advertising business,” he said. “That’s what makes the advertising business fall into the deconstruction situation that’s been happening now for a couple of years. There’s nothing new, particularly, in outbound advertising, marketing communications that needs to be developed. It’s been 50 or 60 years, and they’ve done a wonderful job, but we’re looking for things that we’re 40% into or 50% into. We’re very far from our 80%, and we like to say we’re always a work in progress.”

Feature Image Credit: Jeff Beer

By Jeff Beer

Jeff Beer is a staff editor at Fast Company, covering advertising, marketing, and brand creativity. He lives in Toronto. More

Sourced from FastCompany

Is the world becoming swamped with content?

By MediaStreet Staff Writers

A recent survey by 10Fold has revealed that marketing executives now focus a substantial portion of their budget on creating and constantly delivering new content at an ever-increasing frequency. According to the research findings, nearly one-third of respondents are now producing content daily or hourly.

The report looks at current and planned content marketing budgets, frequency, type, development and measurement of content programs. It found that three-quarters of technology marketers plan to generate three times more content in the next 12 months than they did in the previous year; and 42 percent will spend €250,000 or more in the next 12 months on content.

Measuring the effectiveness of content is still a challenge for marketing executives. But it seems that soliciting customer feedback never goes out of style.

Key Research Findings:

  • Social media, video and webinars are cited as the best content “types” among all respondents
  • Top executives prefer video as a content medium
  • 44 percent of respondents say that lack of domain expertise is the top barrier for creating quality content
  • 99 percent of respondents use third parties to create at least 25 percent of their content
  • 83 percent of respondents report that third party generated content is at least above average
  • 80 percent leverage basic tools (Google Analytics) to track and measure content impact; followed by 60 percent using marketing automation systems

“The marketplace is constantly changing,” said David Gehringer, principal of Dimensional Research. “Based on the results of our research for 10Fold, there is no doubt that there is an insatiable demand among technology companies for content that has technical relevancy and that is delivered in a form, such as video and blogs, that is appealing to their buyers.”

It seems that the saying “content is king” still rings true, for now.

 

By Sean O’Neill.

Expedia’s fast-growing hotel search site Trivago may see its pace of growth stall as both Expedia and rival The Priceline Group have pulled back on spending. This is an extraordinary development given the fact that Trivago was one of Expedia’s growth engines and there was seemingly no end in site.— Sean O’Neill

Talk about a bump in the road.

Last year, the Priceline Group and Expedia Inc. accounted for about 80 percent of hotel-search site Trivago‘s revenue. But this year those companies pulled back on their digital advertising with Trivago.

In the third quarter, Trivago’s revenue increased to 17 percent year-over-year to $339 million (€287.9 million). Trivago’s net loss for the third quarter was $10 million, compared with basically a break-even third quarter of 2016.

On a call with investors Wednesday, Trivago executives said they were treating the reduced spending by Expedia and Priceline “as a given” through 2018. They said it was too early to project total company revenue growth in the first half of 2018. But they said it is possible that growth may be flat or possibly negative, as year-over-year comparisons.

“It will be challenging to show positive growth,” said managing director and chief executive officer Rolf Schrömgens when speaking with investment analysts.

Trivago did not disclose details on which of its two largest customers cut its spending more, or why, adding that it doesn’t know the business rationales of its partners. One of its largest advertisers, Expedia, controls Trivago.

Trivago said that for the three months ended September 30, 2017, the Priceline Group and its affiliated brands accounted for 45 percent of its total revenue. Expedia, which is a majority investor in Trivago, accounted for 34 percent of its total revenue.

When the time window is expanded out to the nine months ended September 30, Priceline accounted for 47 percent of Trivago’s total revenue. So Priceline’s share of the pie has dipped only slightly when comparing the first nine months of the year to the third quarter. We don’t know what Priceline’s spend was in the third quarter of 2016.

With only two companies dominating its advertising auctions, when one downshifts its ad spending, the other doesn’t need to bid as high either — giving Trivago lower revenue and profit per customer referral. Advertisers submit cost-per-click bids in its auctions for each user click on an advertised rate for a hotel.

The company has been slow to bring smaller online travel agencies, independent hotels, and hotel chains into its market, which it partly blames on the clunky technology used by those smaller players.

Axel Hefer, managing director and CFO at Trivago, said that the important thing to note is that 2016 had been a year of extraordinary growth for the company, and so the comparisons are tough to beat.

Hefer said in an interview: “When you manage marketplace businesses, you need to look through that and focus on having an attractive value proposition, meaning in our case, being more efficient as a marketing channel than other options and being a more efficient search interface for consumers.”

Will Trivago reduce TV advertising?

To get the nuance of what’s gone awry, it’s worth reviewing Trivago’s marketplace model.

On its consumer-facing side, it attempts to draw users by presenting an easy search interface with a comprehensive inventory. It has relied heavily on TV ad spending. Executives on the call said they have not decided if they were going to shift in 2018 away from TV spending to digital performance marketing, such as spending on ads on Google and Facebook.

Executives said there is “partial evidence” that brand TV advertising saw declining effectiveness during this past peak summer season, but they said there is not enough data yet to know if it should reduce that spending.

On its industry-facing side, it pits advertisers — online travel companies and hoteliers — against each other in auctions to get premium search placement and be more likely to receive bookings.

Trivago’s software aggregates and evaluates quotes on hotel room prices from its advertisers. Last winter, it changed the formula by which it determines the prominence given to offers and their placement in its search results in ways that may have upset advertisers.

On the auction front, Trivago aims to do more to get hoteliers and online travel agencies using its marketplace to reduce its dependency on the giant conglomerates for growth. Its relatively new “express booking” and new suite of business tools aim to do help with that.

An expansion into vacation rental listings seems logical, but the company had no comment on that prospect.

An irony of today’s news, which led to a 19 percent stock price drop in early trading, is that Trivago is sending more customers to online travel agencies and other advertisers than ever.

In the third quarter, the number of so-called qualified referrals increased 20 percent, as the company supplements declining margin with greater volume. The company defines a qualified referral as a unique visitor per day that generates at least one referral. For example, if a single visitor clicks on multiple hotel offers in its search results in a given day, they count as multiple referrals, but as only one qualified referral.

By Sean O’Neill

Sourced from Skift

By Karola Karlson

Having a business relationship with Facebook is time consuming – there’s an update every few weeks, and it takes all your effort to keep up with the latest features.

Giving up on that relationship isn’t an option. With more than 79% of American internet users on Facebook, the platform holds the keys to your potential customers’ hearts.

With more than 79% US internet users, @Facebook holds the keys to potential customers’ hearts. @pewresearch Click To Tweet

My relationship with Facebook ads had its first sparkle two years ago. Since then, I’ve overseen 80-plus Facebook ad campaigns that reached more than 2 million people across 30-plus countries.

How do I keep up with all the updates and news? Here’s the secret: I don’t, aside from keeping an eye on a couple of blogs about the topic.

That’s because most Facebook advertising hacks never get old. You learn them once and keep applying the same best practices across all your Facebook ad campaigns. Start with these 10 key evergreen tactics.

1. Know your customers

Surely, you’ve seen ads in your Facebook newsfeed. I bet you’ve ignored a good share of those ads while clicking only a few.

You know what was wrong with those ads that failed to catch your attention? The ads weren’t necessarily bad, they were simply not reaching the right audience.

When it comes to Facebook advertising, it is crucial to know your customers well enough to create a highly targeted Facebook ad audience. You must have a good audience match for people to engage with your campaign. For example, if you promoted chocolate bars to people on a diet, your campaign ROI wouldn’t be as high.

You must have a good audience match for people to engage when advertising on @Facebook. @KarolaKarlson Click To Tweet

Here’s a Facebook ad from GoPro – it only makes sense for people who own an older model of a GoPro camera, not potential users.

gopro-facebook-ad

To make sure your Facebook ads are relevant to the target audience:

  • Create slightly different ads and messaging for each customer persona.
  • Target ads based on where your target is in the conversion funnel — advertise different messages to the people who never heard of your product, to people slightly familiar with your product, and to your loyal customers.

2. Leverage advanced Facebook audiences

Targeting people based on their interests is a foolproof way to create a Facebook audience. However, the real gold mine of Facebook marketing opens when you use the advanced audience features: custom audiences and lookalike audiences.

In one case, we showed the ad below to a wide set of people by using Facebook saved audiences – targets are based on demographics and interest. And guess what? It didn’t work. At all.

advanced-facebook-audiences

The cold audiences were not particularly interested in committing to a new project management tool.

We switched and targeted people who had been to our landing page by installing a Facebook pixel on our website and targeting them through the custom audience feature in Facebook advertising.

Install a @Facebook pixel on your website & target audience through custom audience feature. @KarolaKarlson Click To Tweet

TIP: Exclude people who visited the thank-you page on your website (indicating they completed a purchase) from your Facebook targeting. (We’ll address the benefits of this buying group when lookalike audiences are discussed later.)

facebook-custom-audience

Consider targeting these high-ROI types of visitors to your site:

  • Previous website visitors
  • Landing page visitors
  • Blog readers (even better if you segment them by topics)
  • Pricing page visitors
  • Shopping cart abandoners
  • Existing customers (for up-sell campaigns)

3. Make high-value offers

Your Facebook ad should always include two messages: a call to action and a good reason for taking that action.

.@Facebook ads should always include a CTA & a good reason for taking that action, says @KarolaKarlson. Click To Tweet

Usually, advertisers get it right when it comes to including the call to action. What many Facebook ads are missing is a unique value proposition – a clear one-liner that explains how your product or service will benefit the viewer.

As Peep Laja from ConversionXL puts it: “Value proposition is something real humans are supposed to understand. It’s for people to read.”

For example, this Facebook ad has a powerful value proposition: Reach more than 433 million professionals through LinkedIn.

linkedin-ad-example

Alternatively, you can offer a free product trial or a limited-time discount code. The New York Times, for instance, offers a discounted subscription. The small investment by the readers makes them value the deal more than they would with a free offer.

nyt-discount-subscription

TIP: Don’t brag about your product’s features that seem amazing to you but are irrelevant to your target audience.

A simple litmus test for evaluating your value offers is to put yourself in your customers’ shoes and ask: “Would I click on this ad and buy that product?” If the answer is no, spend some more time perfecting the value proposition.

If you wouldn’t click on a @Facebook ad, spend more time perfecting value prop. @KarolaKarlson Click To Tweet

4. Use original designs

Facebook users see tens if not hundreds of images in their newsfeeds daily. If your Facebook ads resemble other pictures in their newsfeed, you’ll get a lot less attention. To make your ads stand out from the crowd, design original ads instead of using stock images. In fact, make your ads boldly stand out so people can’t help but notice.

Design original ads instead of using stock images to help your @Facebook ads stand out, says @KarolaKarlson. Click To Tweet

One of the easiest ways is to use bright colors. Alternatively, you could also swim against the flow and create minimalist ads with a white background – a Facebook advertising hack I’ve seen working many times.

facebook-ad-original-designs

Your Facebook ad designs do not have to be complex, and you don’t need extensive Adobe Photoshop skills to succeed. What you need is something that looks high quality and catches attention — a design you could easily create by using online tools like Canva.

5. Break up repetitiveness

You can’t publish the same ads over and over and get more people to act on them. To catch more target audience members, you need to create different ad creatives.

Even if that colorful ad design has worked wonders, a time will come when your target audience develops ad fatigue. To combat that, here’s what to do:

  1. Change at least some of your ad creatives every two weeks. Add new designs to existing ad campaigns while pausing low-performing variations.
  1. Create ads in different colors with and without in-image text. Expand your ad images to create more diversity.
  1. Set up a Facebook ad rotation schedule by creating two to three ad sets, each with different creatives. Do not change any other elements such as the target audience.

Here is a simplified version of a custom ad schedule: On each weekday, your target audience will see a different ad, and, consequently, won’t get tired of seeing them as quickly.

facebook-ad-schedule

Image source

6. Don’t overdo A/B testing

One of the Facebook advertising mistakes I made early in my career was running A/B tests with too many variables and not enough data to get statistically significant results.

Another mistake is to create a Facebook ad split test with many variables, e.g., target audiences, ad creatives, and ad copies within a single experiment. Here’s why this approach won’t work: You won’t be able to know which variable affected the outcome.

Instead, test each differentiating element one at a time. For example, experiment with the ad creative first. Once you’ve discovered a winning creative, test the copy on the ad.

With this sequencing process, you can be more efficient and get statistically valid split-testing results.

When testing @Facebook ads, don’t overdo A/B testing, says @KarolaKarlson. Read more >> Click To Tweet

7. Track your campaign results

All the successful Facebook ad campaigns I’ve seen have one thing in common: They are focused on highly specific goals. And I’m not speaking about ad impressions, reach, or website traffic.

What are those meaningful results? That depends on your goals. For example, if the goal of your ad is to increase revenue, look at sales numbers. If the ad is to promote your blog, look at the blog’s traffic such as average time on page, number of return visitors, newsletter subscribers, purchase, and more.

facebook-campaign-results

Some of these metrics can be found in the Facebook Ads Manager (if you use Facebook pixels). Other statistics can be found in Google Analytics reports (if you properly use UTM tags for additional campaign insights).

8. Optimize your campaigns on conversions

Another important thing I’ve learned is that the type of your campaign matters. And it matters a lot.

It’s possible to select from an impressive range of Facebook campaign goals from website traffic to app installs to purchases when setting up new ads. How do you pick one for your campaign, especially if multiple options seem like good choices?

Think about the goal of your ad campaign. It’s as simple as that. Let the algorithms know by selecting the campaign objective closest to your goal. Do you seek website clicks or do you want conversions such as a free trial sign-up or e-store purchase?

Think about the goal of @Facebook ad campaign, & select the campaign objective closest. @KarolaKarlson Click To Tweet
optimize-facebook-conversions

The secret is to keep asking why until you get to the core reason you’re running the campaign.

9. Trust Facebook’s auto-optimization

I’ve been surprised to learn that less is more with a Facebook ad strategy and implementation.

Applying too many hacks might hamper your campaign results instead of helping them. I’m not saying that Facebook advertising hacks do not work. All I’m saying is that if you’ve got a powerful value proposition and the right target audience, things will start to click regardless of the small adjustments you did or did not make.

Facebook auto-optimization algorithms can learn to whom to deliver your ads based on previous conversions. If you think about it, Facebook probably knows more about your potential customers than you do.

In a recent experiment, my client promoted two identical ad sets – only one targeted an audience 20 times wider. The ad set with narrow targeting had a cost per acquisition (CPA) of $2.67 while the ad set with wider targeting delivered a CPA of $2.79. That’s a minor difference. facebook-auto-optimization

Test it: Create two identical ad sets. Target one set to an audience of 5,000 to 10,000 people you think would be most interested in your offer. Simultaneously, create a set targeting 80,000 people. Let both campaigns collect at least 100 conversions and run for at least 72 hours. Compare the results.

In most cases, Facebook’s algorithms have done an equally good job at delivering your ads to people most likely to convert. Even the cost per acquisition should be similar for both ad sets.

By targeting larger audiences, you rule out the chance of missing groups you didn’t realize are interested in your offer.

TIP: Still create retargeting campaigns – there’s no Facebook audience more valuable than a retargeted one.

There’s no @Facebook audience more valuable than a retargeted one, says @KarolaKarlson. Click To Tweet

10. Use Facebook’s automated rules

I learned the value of this last technique recently when managing 50-plus ad campaigns and struggling to keep up to date with their day-to-day performance. However, it is equally helpful when working on small Facebook ad campaigns.

Facebook Automated Rules is a free feature for advertisers. It allows you to set up conditions to trigger automated actions such as:

  • Receive a notification.
  • Have your campaign, ad set, or ad turned off.
  • Have your ad set’s budget automatically updated.
  • Have your ad set’s manual bid automatically adjusted

Automated rules are incredibly helpful in avoiding unpleasant surprises a week or two later when you have the time to manually review the ads’ performance. For example, ask Facebook to automatically decrease the budget for a low-performing ad set while increasing the daily spending of a successful ad set. With that automated trigger, your ad spend will be more effective.

create-facebook-automated-rule

To apply automated rules, go to the editing panel or a campaign, ad set, or ad in the Ads Manager. Next, click on “Create Rule” button.

facebook-automated-rule

TIP: Ask for an email notification to inform of an underperforming campaign or ad set so you can check out the potential problem and adjust the ads accordingly.

Conclusion

While managing Facebook ad campaigns can seem like a lot of work, with all the automated tools and algorithms working in your favor it’s not as difficult as you may think. The key to successful ad campaigns lies in knowing your target audience and creating high-value offers that improve people’s lives – a skill every marketer can acquire through practice.

Please note: All tools included in our blog posts are suggested by authors, not the CMI editorial team. No one post can provide all relevant tools in the space. Feel free to include additional tools in the comments (from your company or ones that you have used).

Stay on top of what’s new and what’s new that you don’t need to care about in content marketing with CMI’s daily newsletter (or weekly digest). Subscribe todayBy Karola Karlson

Karola Karlson is the founder & author of Aggregate, the most upright blog about marketing, growth, and data. She’s also a contributor to marketing blogs like AdEspresso, HubSpot, and KlientBoost, and works as the Digital Marketing Manager at SaaS startup Scoro. Karola’s all about random cool ideas, growth marketing, and taking new marketing approaches on a test drive. Connect with her by visiting her blog or on Twitter @KarolaKarlson.

Other posts by Karola Karlson

Sourced from Content Marketing Institute

By .

You’re at a cocktail party, and you find yourself standing next to a guy you’ve never met. He seems pleasant enough at first, offering his name — let’s call him Eric — and a friendly handshake.

But then, unprompted, Eric tells you what he does for a living, where he’s from, where he went to college and what he majored in. And then Eric rattles off all the places he’s worked, what he did at those places — and babbles on about a new project he’s working on — in painstaking, mind-numbing detail — as he produces his business card. Just minutes after meeting him, you’re frantically scanning the room for any to get away.

We’ve all run into that guy. We hate that guy. So don’t let your brand be that guy.

These days, everyone’s trying to figure out “content” (a terrible term, but that’s for another piece) — while, every year, advertising spend on social media spending keeps going up. Given those two trends, it’s surprising how many brands still prattle on incessantly about themselves like that blowhard Eric.

I’m not saying brands no longer need artfully crafted communications about their products and services that are compelling and grounded in a human truth—they still do, and always will. But an important question marketers should be asking today is:

What should my brand talk about other than itself?

This isn’t a new concept. I’m an Ogilvy guy, and one of my favorite ads from the archives is this one for Guinness that ran in Esquire in the early 1950s.

1950s Guinness ad

Now that’s what the kids today call “native content.” And it’s great. A lot of people love oysters, but almost no one knows anything about them. So in addition to its eye-catching art direction that immediately draws you in, the copy holds your interest, in part, because it’s not about Guinness — it’s about a delicious mollusk. And it wasn’t a one-off. There were ads about cheeses, game birds, and steaks. In short, it was a beautiful and highly effective campaign for Guinness that wasn’t about Guinness.

Let’s pause for a minute.

Think about the kind of people you find interesting and enjoy being around. They don’t ramble on endlessly about themselves. They’ve got a knack for finding what interests you—and they always seem to have some interesting tidbit about that subject that captures your attention. They meet you on your level. They listen. They fascinate. And so should brands.

A lot of brands understand this.

Nike doesn’t just talk shoes, they talk about hard work and human achievement. REI doesn’t just talk about ski equipment, they talk about the transformational power of being outdoors. And Apple doesn’t just talk about smartphones, they talk about design and creativity.

But other brands have some catching up to do. Take the major pizza delivery chains. Why do they seem to talk about pizza and prices and little else? People already love pizza, and a dollar here or there isn’t going to buy their loyalty for the long haul. Or consider retailers that dominate a category — like say, toys or music. These brands have a wonderful opportunity to talk about something other than themselves and they’re mostly not taking advantage of it.

So let’s say you’ve accepted my premise. How do you know what your brand should talk about? Two things you need right off the bat are a razor-sharp definition of your brand — yes, brand still really matters — and a deep understanding of your customer. But tread carefully. To enter certain conversations, brands need credibility.

Guinness could credibly talk about oysters and cheese because beer goes pretty well with both. And almost anyone can talk about say, the Olympics. But even if they had done so in a less ham-fisted way, Pepsi didn’t have the credibility to talk about the Arab Spring and Black Lives Matter.

The bottom line: in an increasingly distracting world, brands can’t expect people to be interested in them just because they show up on their television or tablet. They must start with the premise that people just don’t care about their heritage, their ingredients, their propriety processes or their “solutions.”

To attract interest and build loyalty, they need to talk about something besides themselves that’s relevant to their customers in an entertaining or provocative way. In other words, brands should be more like REI and hell of a lot less like Eric.

By .

Sourced from THEDRUM

Sex doesn’t sell… so, what now?

By Mediastreet Staff Writers

Could it be that sex actually does not sell? An analysis of nearly 80 advertising studies published over more than three decades suggests that’s the case.

Says University of Illinois advertising professor John Wirtz, “We found that people remember ads with sexual appeal more than those without. But that effect doesn’t extend to the brands or products that are featured in the ads.”

Wirtz and his co-authors conducted a first-of-its-kind meta-analysis of 78 peer-reviewed studies looking at the effects of sexual appeals in advertising. Their findings were posted online this week by the International Journal of Advertising.

Their research found that not only were study participants no more likely to remember the brands featured in ads with sexual appeals, they were more likely to have a negative attitude toward those brands, Wirtz said.

Participants also showed no greater interest in making a purchase. “We found literally zero effect on participants’ intention to buy products in ads with a sexual appeal,” Wirtz said. The assumption that sex sells is entirely wrong.  “There’s no indication that there’s a positive effect.”

As defined in the research, sexual appeals included models who were partially or fully nude; models who were engaged in sexual touching or in positions that suggested a sexual encounter was imminent; sexual innuendoes; and sexual embeds, which are partially hidden words or pictures that communicate a sexual message.

“The strongest finding was probably the least surprising, which is that males, on average, like ads with sexual appeals, and females dislike them,” Wirtz said. “However, we were surprised at how negative female attitudes were toward these ads.”

Wirtz said he decided to pursue this research because he sees meta-analysis – the application of statistical procedures to data from a range of studies – as a powerful tool. “The average number of participants in each individual study was about 225, but by using a meta-analysis, we could combine studies and conduct some analyses with more than 5,000 participants – in one analysis, with more than 11,000. This means that our results present a more accurate picture of what happens when someone sees an ad with a sexual appeal.”

The implications of the research for advertising practitioners are mixed, given that ads with sexual appeals are remembered more – and advertisers want people to remember their ads, Wirtz said – yet they don’t appear to help in selling brands or products. “Certainly the evidence indicates that the carryover effect to liking the ads doesn’t influence whether they’re going to make a purchase.”

This could be one reason why a national restaurant chain, known in recent years for ads selling its sandwiches with scantily clad models in suggestive poses, made a very public break with that approach in a three-minute commercial in the last Super Bowl, Wirtz said.

“If the ‘sexy ads’ had been effective, it’s unlikely the company or ad agency would have made such a drastic change. When product is moving, people don’t make changes.”

 

By Joe Liebkind

In the massive world of online advertising, blockchain will be a force to reckon with. Unlike with some blockchain products such as cryptocurrency, advertising can employ blockchain in a plethora of unique ways. The applications of this technology in advertising will help ad creatives target audiences better, share data, make users safer and more private, and democratize who controls the data that the industry relies on.

A New Direction for Advertising

One of the most notable features of blockchain as a finance application is anonymity. While this is a product of blockchain’s origins in bitcoin, for advertising, anonymity is sometimes counter-productive. Blockchain solutions for advertising will instead make use of the robust accountability that the technology provides, wiping the slate clean for all participants.

Blockchains built since the original (bitcoin) have expanded upon the importance of such transparency, and many of the most influential chains will find their killer apps in the advertising world. Companies like Papyrus exemplify this trend, with platforms that make it easy for users to know exactly who is paying to advertise to them, and where their data is coming from. With Papyrus, these users can even decide not to share any of their browsing habits or other usage data, though if they do, advertisers can pay them for it directly.

From the user side, this is preferable to the excess of ceaseless, inaccurate ads that bombard us daily. Advertisers might be put off at first, but will quickly realize that the system works in their favor as well. (See also: Disney Creates Blockchain Platform to Rival Ethereum.)

Another venture, Bitcomo – a blockchain-driven lead generation platform – is creating a smart contract-based advertising model (pre-sale ICO kicks off on September 18) in which payment is due once results been delivered or after generating a smart contract-triggered sale. Bitcomo offers a solution to the traditional advertising model in which publishers are at the mercy of advertisers who are not always able to pay the entire commission as a protection against leads that were not approved.

Similarly, advertisers cannot be certain they are getting their money’s worth and are often forced to blacklist publishers who may be conducting fraudulent activities. (See also: Investing in Cryptocurrencies: What to Keep In Mind.)

Kanstruktor over at Steemit explains: “Decentralized network between advertisers and publishers through caching, and logging of clicks and leads, key statistics, personalized nodes in the blockchain operator MetaHash (fork of Ethereum – ERC20). It is a basic principle of protection against fraud and concealment of data on actual transactions from advertisers, or making unrealistic target bots in the traffic of publishers instead of real users.”

Blockchain’s Advertising Chops

For online advertising, data is precious. It reveals patterns in one’s shopping and search history, comprises social media posts and leaves priceless clues behind. Blockchain distributes this data to the entire network, whereas it was once kept on secure company servers and put up for sale to bidders with a relevant interest.

Apart from functionality that gives users more control, and puts the value of their data exclusively in their hands, this decentralized system benefits ad creators as well. They will have access to immense shared pools of relevant data, already vetted by other participants and proven with the chain, making ad targeting much more accurate and much less expensive. Blockchain’s irrefutable, ledger-like system is a perfect tool in the hands of ad companies whose bread and butter are key performance indicators like clicks and likes.

Instead of paying upfront for expensive ad space targeting fishermen, for instance, the same fishing gear company can use a blockchain advertising company to target those who have expressly stated (with their data-sharing preferences) that they are interested in such gear. The game will no longer be based on flighty browsing habits, but on hard data. Moreover, smart contract ad buying solutions make it possible for companies to buy conditional space, which will only show an ad should the target fulfill certain parameters.

Blockchain’s Future in Advertising

Online advertising companies are just now beginning to develop real use cases for blockchain in their daily activities, and those who get ahead of the curve sooner will benefit greatly. Blockchain is the ultimate democratization tool, and while those who currently protect the status quo are right to be afraid, at some point everyone will realize that an open system creates as many opportunities as it takes away.

The future is fast in coming, and instead of predicting it, the fast movers are already making it happen. (See also: Cryptocurrencies Will Fail Without Cross-Chain Transactions.)

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By Joe Liebkind

Sourced from Investopedia

People are freaked out by ads that follow them around after a google of the product.

By Mediastreet Staff Writers

Personalised ads now follow us around the web, their content drawn from tracking our online activity. We in the ad industry have suggested that people are okay with it – that people see benefits roughly equal to perceived risks.

A study by University of Illinois advertising professor Chang-Dae Ham says otherwise, suggesting the ad industry may want to reconsider its approach.

“The perception of risk is much stronger than the perception of benefit,” Ham found in surveying 442 college students on how they coped with what is known as online behavioural advertising. “That drives them to perceive more privacy concern, and finally to avoid the advertising,” he said.

Previous studies have looked at various aspects of online behavioural advertising (OBA), but Ham said his is the first to investigate the interaction of various psychological factors – or mediating variables – behind how people respond to it and why they might avoid ads.

“The response to OBA is very complicated,” he said. “The ad avoidance is not explained just by one or two factors; I’m arguing here that five or six factors are influencing together.”

Ham examined not only interactions related to risk, benefit and privacy, but also self-efficacy (sense of control); reactance (reaction against perceived restrictions on freedom); and the perceived personalization of the ads.

He also looked at the effect of greater and lesser knowledge among participants about how online behavioural advertising works. Those with greater perceived knowledge were likely to see greater benefits, but also greater risk, he found. Similar to those with little perceived understanding, they tilted strongly toward privacy concerns and avoiding ads.

Ham’s study of online behavioural advertising follows from his interest in all forms of hidden persuasion, and his previous research has looked at product placement, user-generated YouTube videos and advergames. But OBA is “a very special type,” he said, in that it elicits risk perceptions and privacy concerns different from those in response to those other forms.

The study conclusions could have added significance, Ham said, because research has shown that college-age individuals, like those in his study pool, are generally less concerned about privacy than those in older age groups.

If his findings are an accurate reflection of consumer attitudes, Ham said they could represent “a really huge challenge to the advertising industry” since online behavioural advertising represents a growing segment of advertising revenue.

Ham thinks advertisers, in their own interest, may want to make the process more transparent and controllable. “They need to educate consumers, they need to clearly disclose how they track consumers’ behaviour and how they deliver more-relevant ad messages to them,” he said.

Giving consumers control is important because it might keep them open to some personalised online advertising, rather than installing tools like ad blockers, in use by almost 30 percent of online users in the U.S., he said.

With little understanding of online behavioural advertising, and no easy way to control it, “they feel a higher fear level than required, so they just block everything.”

It’s all the more important because the technology is only getting better and more accurate, Ham said. Tracking systems “can even infer where I’m supposed to visit tomorrow, where I haven’t visited yet.”