Tag Archives: ADS

Marketing Predictions for 2013

bandwagon

In 2012, there were increased developments for marketers. Social media sites, such as Facebook, created a massive mobile advertising business. Now the question is, what does 2013 have to offer? Advertising experts got together to show marketing predictions for the year to come.

The first strategy experts explored was “Mobile-First Strategy.” Facebook and Google are two sites responsible for the mobile ad spending tripling to $4 billion in 2012. According to eMarketer, “we expect mobile ads to increasingly become the top priority for advertisers on digital, rather than desktop.” This is the result of consumers spending more time and money on mobile devices.

Next experts explored the revision of “Banner Ads.” Banner ads do not work well on mobile devices, which has lead companies to reconsider using them. However, the ads will not be going away for good, instead businesses are working on a more creative way to post them and become user friendly.

Brand Bowl 2012

This past Sunday, advertisers everywhere were tuned into the Olympics of Advertising, or what we call the Brand Bowl. Who came out victorious and who failed to impress? Here are some of the highlights if you missed it:

Which were your favorites?

See them all here 

Winning in the New ‘Marketing Democracy’

Imagine for a moment that you moved to a new home located right next door to a train station. It’s noisy at first. But after a while, you get used to the noise and barely notice it. That notion captures “exactly how consumers feel about marketing and advertising — as if it’s not even there,” said Tim Suther, chief marketing officer of Acxiom, the world’s largest processor of consumer data, at a recent Wharton Marketing Conference. Such consumer numbness has profound consequences — $112 billion in major brand advertising is wasted every year, while eight out of 10 online ads fail to reach their desired audience. “A truly awful, awful performance,” noted Suther.

With the right strategies, however, Suther said companies can successfully navigate this tumultuous world to reach their target customers. He cited a few of the most well-known strategies. For one, they should personalize their marketing to consumers instead of blasting them with broadly targeted ads. They should also identify those customers who spend the most money on their products and services, and invest more in marketing directly to them. Companies should craft a multidimensional profile of their customers, Suther advised, looking not only at what they are buying, but also what they are thinking and how they are behaving online. Moreover, companies should better coordinate their different sales channels to deliver a seamless experience for the customer wherever he or she chooses to shop.

“Einstein famously said that insanity is doing the same thing over and over while expecting a different result,” Suther said. Likewise, companies need to begin thinking differently about how they do marketing, especially in an increasingly connected world. With the expansion of sales and media channels, consumers can shop online using their computers or phones or make traditional bricks-and-mortar store purchases. This increased number of options presents marketers with tremendous opportunities to understand and reach the right audience — if they are savvy enough to do it correctly. “Those [consumers] who engage in multiple forms of media or channels are four to five times more valuable” than those who only participate in one, Suther noted — yet two-thirds of senior executives do not have insight into their consumers across all of these channels. For instance, while people spend 42% of their media consumption time online, advertisers shell out only 11% to 12% of their total advertising budgets on the web.

For marketers, the stakes have never been higher, especially in a world where, via the Internet, consumers can instantly judge a company and convey their opinions to fellow shoppers. This “consumer-to-consumer” trend is a “powerful force affecting the business of advertising and marketing,” and has created what Suther refers to as a “marketing democracy.” “Elections, if you will, are being held every day. Consumers are voting … and they are determining winners and losers. You’ve got to pay attention to this, because they will vote you out of office.”

Suther, who joined Acxiom in 2005 and became an officer in 2007, is responsible for the company’s product marketing, communications, sales support, strategy and business development efforts. Previously, he served as a senior vice president at Metavante, a banking and technology solutions firm, and as president of Protagona Worldwide, a marketing software company. He has a degree in finance and marketing from Loras College in Iowa.

So how can a company fine tune its marketing? The first step, according to Suther, is reaching and engaging the firm’s target customers. The company needs to know who its customers are and what their needs are. “Life is like a box of chocolates. You never know what you’re going to get,” he said, quoting from the movie Forrest Gump. “A lot of marketing and advertising is like that. If you don’t know who is on the other end of the equation, you’re going to have a very nasty problem.” Marketing efforts may be over-invested in relationships of low value and underinvested in those with high value. About 20% of a company’s customers bring the greatest portion of profits, Suther noted, while about half are only marginally profitable. Dividing customers into these groups and marketing appropriately to them makes a material difference in performance. “The future of marketing and advertising will be about reaching just those customers who are likely to drive the maximum value to your organization.”

Second, companies need multidimensional insight into their market. While some firms rely mostly on past purchases or online behavior in determining buying patterns, Suther said there are pitfalls in relying on only one facet of a customer. “If you’re relying just on a single dimension [of a consumer], you’ll get it wrong. You need to have a multidimensional view.” That means taking into account consumer action in different sales channels, behavioral changes over different life stages and other external information. It is a complex process with “no silver bullets.”

The third facet of smart marketing is best shown by what Suther considers “the greatest marketing movie of all time,” Groundhog Day. In the movie, Bill Murray plays a character who relives the same day endlessly and learns as much as he can about the people around him so that he can anticipate their needs the next time he sees them; his tireless work gets him the girl of his dreams.

“Remember me [i.e., the customer] and treat me like a friend. Wherever you see me, anticipate my needs and what I don’t need,” Suther said. “The notion of remembering every interaction and learning [from it] is an important part of being a marketer.” Once a company collects all the insights it has gathered about a particular customer, and implements a marketing plan, the firm then arrives at what Suther referred to as “the moment of truth: Getting [the plan] right can drive a five- to 10-fold return on investment.”

According to Suther, companies should deploy a strategy that encompasses all facets of smart marketing. By doing so, a firm will be able to reallocate 15% to 30% of its marketing budget into higher-performing options; such changes lead to real profits, he said. For example, a major global technology company looked at the pattern of calls coming into its call centers. Many of the calls were questions that the company’s online FAQ section could answer, or orders too small for sales representatives. The company ended up sending out a personalized newsletter to fill information gaps, and it enabled electronic handling of the small orders, saving money and boosting profits.

The economic benefits of smart marketing are real, but there are real-life roadblocks, Suther warned. Changes aren’t easy to implement when employees are used to the status quo. “Your [ad] agency of record will be all over the persona of your customers, while those in digital will be exclusively focused on digital. If you rely on just one of those dimensions, you will get it wrong.” He advised firms to find a way to help both sides collaborate more closely. In addition, senior management often can be impatient about the payoff of such changes and put pressure on the person who recommended the new policies. “It’s really important to show results along the way. [We advise doing] that every three months or so to remind those who you have convinced about your noble ambitions that you are making progress against that investment.”

In the end, the hard work of navigating the new world of advertising will be worth the trouble, according to Suther. Paraphrasing a famous quotation from the 1949 film The Third Man, Suther noted that, although Italy suffered constant warfare and bloodshed for 30 years under the Borgias, that era also gave birth to Michelangelo, Leonardo da Vinci and the Renaissance. “The point of all the tumult that exists in the marketing and advertising world is that goodness will come out,” Suther said. “We will have our Renaissance.”

Article courtesy of: The Knowledge Behind The News

Wired-cable penetration has declined to a 21-year low

According to a TVB analysis of Nielsen Media Research data for May 2011, a record number of American TV households are receiving video programming via an alternate delivery system (ADS), mostly via direct broadcast satellite, while wired-cable penetration has declined to a 21-year low.

According to Nielsen NTI data, national ADS penetration hit 30.9% last month, an all-time high that is up from 30.3% in May 2010. Wired-cable penetration, on the other hand, declined to 60.6% in May 2011 from 61.1% in May 2010 he last time wired-cable penetration had been any lower was in November 1989.

Click here to view more, including the penetration levels for all 210 DMAs.

Younger Mobile Users Less Likely To Click Ads

According to new data from the mobile ad network Jumptap, the older and wealthier you are the more likely you are to engage with ads shown on your mobile device. Users 40 and over are close to five times more likely to interact with an ad than those younger than 40, and people earning over $50,000 a year are twice as likely to do so than people earning less. These statistics were taken from “an analysis of the 10 billion ad requests made to the Jumptap network by its audience of 83 million unique users in April.” The study also discovered that “58% of mobile Internet users are getting content through their browser, compared to 42% via ad-supported apps.” Smartphone users are often wealthier and older than feature phone users and typically use more mobile data. Jumptap, and other mobile ad networks are widely aware of this and ad targeting on cell phones is being used more now than what was originally seen on the PC Web.

(Source: Online Media Daily 05/11/11)


Local wired cable systems’ ability to deliver commercials continues to erode

   
      29.3% OF AMERICAN TV HOUSEHOLDS NOW SUBSCRIBE
     TO ALTERNATE DELIVERY, AN ALL-TIME HIGH

 

NEW YORK, Dec. 17, 2009 — More American TV households are receiving video programming via an alternate delivery system (ADS) than ever before, according to a TVB analysis of Nielsen Media Research data for November 2009.

According to Nielsen NTI data, national ADS penetration reached 29.3% of television households last month, an all-time high that is up from 28.7% in November 2008, and now represents 32.5% of subscription television customers (those paying for video delivery), another all-time high.

Direct broadcast satellite (DBS) delivery, the largest component of ADS, is now estimated at 29.0%, up from 27.4% in November 2008.

“Advertisers who buy cable locally need to know that local wired cable systems’ ability to deliver commercials continues to erode. In fact, in 29 markets, a majority of those paying for video programming are now getting that programming via ADS rather than from a wired-cable system,” said Susan Cuccinello, Senior Vice President, Research, TVB. “Local cable commercials are not seen in ADS homes, and so local advertisers need to deduct the ADS percentage of the audience if they are included in the cable systems’ submissions.” In November 2003 Nielsen Media Research began making available hard-wired local cable numbers and excluding ADS homes via its Total Viewing Sources DVD. But some third-party processors are still adjusting their software products to use the DVD and the printed Nielsen books do not break out the numbers separately, so advertisers will need to make ADS deductions manually for some time.