Audio Advertising: Finding the Proverbial Needle in the Haystack

Joanna Wong, Head of Business Marketing, APAC, Spotify_1
by Joanna Wong, Head of Business Marketing, Spotify, APAC

Today, consumers are constantly bombarded with messages from every platform available on a daily basis. However, as marketers, we need to ask the question, is this truly effective?

Content marketing in the age of data often focuses on understanding what people are doing rather than how they are feeling. Consumer decisions rely heavily on emotions they experience too.

With that in mind, it is important for advertising and marketing executives to understand the importance of the change that is happening in the industry.

The wind of change is here

With today’s Generation Z defining what is mainstream, brands need to open to change and one way of doing that is embracing the fact that we are addressing a new market; a new generation. In addition to that, brands need to be open on exploring the various platforms and modes of advertising.

In the advertising world, 2017 can be seen as a transitional year for publishers and platforms. Print media’s shift to digital is nearly complete, and it is predicted that budget allocated to traditional media will see another huge drop this year. Keeping up with the similar trend, television advertising has accelerated its shift to digital, favoring premium video apps like Hulu and mass-reach platforms like Facebook, YouTube and Snapchat.

Web publishers that don’t offer a differentiated experience will potentially lose consumer attention – and associated advertisers – to scaled platforms. And finally, radio is still early in its shift and is expected to ultimately transition to digital audio platforms over time. As technology continues to evolve, brands and marketers need to be highly attuned to their customers’ journey; ensuring that it is relevant and efficient.

Engage, connect & understand; the only way forward for advertisers

Consumers are looking for content that would complement and represent moments that are relevant in their lives. By reaching audiences during moments that matter to them, brands can now leverage their content with personalized messages to their user, based on the user’s state of mind.

These moments which matter to consumers should matter to brands too as they present a remarkable opportunity for brands to connect with consumers on a deeper level. Unlike demographics or device IDs which are often used to approximate a target audience, moments reveal profound insights about consumers, giving brands the possibility to truly achieve perceptive advertising.

The unique ability of micro-moments to flex to consumers’ need, makes it an especially powerful marketing tool, as brands reach their audience when they’re most engaged, with personalized content that matches their moment.

Although there is a shift, digital ads are still far from living up to their potential, often interrupting the consumer’s favorite content instead of adding value to the experience. Brands tend to fall into the trap of marketing to machines, and not to the consumer directly. Traditional method of using a cookie to profile a shopper and retargeting them may be seen as effective when compared to blind targeting.

Another point of consideration that many miss out is the viewability (or positioning) of their advertisement; above or below the fold? As a rule of thumb, what appears at the top of the page as compared to what is hidden will influence the consumer’s experience, regardless of the screen size.

Personalization must move beyond “targeting”

P&G’s Marc Pritchard has spoken at length about the problems that marketers have identified about programmatic ad placement. Knowing when and where to serve an ad is as important as who and what to serve.

For example, don’t ask a consumer to click an ad if they are driving in a car, or target a “fitness enthusiast” to fill out a form while in the middle of an intense workout. Understanding consumer context and mood are incredibly important and increasingly possible with everything becoming connected. According to IHS, the number of connected devices will grow to 30.7 billion in 2020.

As people increasingly consume media across devices, the marketing landscape is shifting towards people- based marketing.

“People-based marketing represents an industry shift from targeting devices to connecting with the right people at the right time, with the right message. Rather than targeting ads to devices based on cookies, which is fraught with inadequacies, marketers can now reach people across the many devices they use, thanks to persistent identity.” – Danielle Lee, VP, Global Head of Partner Solutions at Spotify

According to Nielsen, 79% of audio is consumed while people are engaged in activities where visual media can’t reach them, whether it’s hitting the treadmill after work, or even channelling your inner rock star in the shower.

Today the priority is about having access to content, rather than owning content. For example, Spotify users spend at least 148 minutes a day listening to music through the Spotify platform. Music streaming is definitely growing and is more prevalent than TV or movie streaming in almost every moment of the day. Music is 5 times more likely to be streamed than TV or movie content, working out (3.5 times more likely) or focusing (3 times more likely); with 60% of music streamers listening on mobile, compared to 40% of TV and movie streamers.

Understanding people through music and why it matters

Savvy marketers will quickly embrace the consumer shift, and audio advertising will be reimagined through the lens of native experiences as opposed to terrestrial radio adaptations. Through streaming intelligence, we build audience experiences that fuel engagement and trust; one way Spotify is able to do that is by understanding people through music.

Understanding people through music, a Spotify led research has become a key part of our data mission. The theory behind the work: because music listening is so uniquely emotional, universal and, now, addressable thanks to streaming, it can uncover deeper insights than consumption of other kinds of content like movies and TV. Music as we know it, is weaved into our everyday lives. There is a song (or a playlist) to represent each moment of our lives.

These moments can be as simple as having a shower before heading to work or preparing for a night out in town. Music reflects who we are, what we are doing and how we are feeling in any given moment. And thanks to music streaming services, people are listening to music and amplifying these moments more than ever.

What does this mean for brands?

Streaming opens up an entirely new set of addressable moments for marketers. The music streaming ad revenue opportunity is worth $1.5 billion today, and it’s expected to reach at least $7 billion by 2030. Audio’s unique ability to flex to consumers’ needs makes it an especially powerful marketing tool. The mobile moments “at work” and “working out” alone have opened up $220M in ad revenue opportunity. With that in mind, brands should leverage audio to reach out to their audience when they are most engaged, coupled with the right message that matches that moment in time.

It is really is about reaching out to the right people at the right moment. How are you doing that?

Evolving your Influencer Marketing for the AI era

Charles Tidswell1The scale and scope of influencer marketing is growing at pace and holds increasing importance in the marketing mix as a way for brands to reach consumers. In this column, Charles Tidswell from Socialbakers provides his top tips for executing social media and influencer marketing campaigns in Asia, including measuring ROI, finding the right influencers and avoiding fakes, artificial intelligence, macro and micro influencers and the specifics of influencer marketing in the Asia Pacific region.

1. Find the right social media influencers

Finding the right influencer is crucial.

A good starting point is to define the brand’s audience personas. This allows the brand to truly understand their target audience, and thus identify an influencer who has values and audiences that line up with that of the brand’s. It is important to look at how aligned an influencer’s content is with your messaging. This can be determined by understanding key traits such as their likes, dislikes and the content they have previously posted.

Brands should ensure that the influencer they select has good engagement and reach.

Engagement is an indicator of how interactive an influencer’s audience is with the content they are posting. How much, and how often audiences engage with the influencer are indications of how meaningful those relationships are. This includes how many readers like, comment or share the influencer’s content.

While not the most important, ‘reach’ is a valid metric for consideration. However, brands should resist the urge to only look at unique visitors as a measure of reach. Traffic and followers are only meaningful to the extent that the influencer is reaching the brand’s target audience.

With the rise of influencer marketing platforms, finding the right influencer can be easy and efficient, eliminating the need to manually sift through influencer profiles. Brands can easily search for influencers based on their audience size, interests, location, age, and gender. It is also possible to see an easy-to-understand score estimating the performance of the influencers, in order to determine the most effective influencer to work with.

2. Measure the ROI of influencer marketing

There are a multitude of ways brands can measure ROI.

The two most common ways are to measure engagement rates, as well as frequency of mentions and hashtags.

Engagement rate is possibly the most common form of measurement. This metric will differ according to the platforms you are evaluating, so brands must be sure to measure the engagement of each individual post in order to better understand what’s working. To put the effectiveness of influencer posts in-context, brands can also analyse their non-sponsored content along with sponsored posts from previous partnerships to benchmark content performance. Since there is no magic number for what a “good engagement” rate should look like, this analysis can be a way to put the engagement rate into context. Brands can even consider looking into the Cost per Engagement (CPE). CPE breaks down how much you are paying for engagement: likes, comments, clicks etc. To get to this number simply divide your total influencer budget by the number of engagements.

Brands looking to see if their influencer marketing campaigns are sparking conversations can tap on social media listening tools. These tools dive into the conversations taking place across social media to find out if the brand is appearing more frequently. Aside from brand mentions, setting up a unique hashtag is also a great way to measure success. If you are creating a campaign with an influencer you can assign a specific hashtag to that campaign and monitor if it’s gaining any traction.

3. Detect and manage fake influencers

Fake influencers are notorious for buying fake followers, hoping to trick brands into a paid collaboration. To make sure the influencer of your choice isn’t ‘fake’, look at their volume of interactions per 1,000 followers. A fake influencer will have a low share of engaged fans, which is a red flag showing you shouldn’t work with that person.

With Socialbakers Influencer Management, marketers can are able to search by location, age, and interests. Influencer posts’ data can be pulled up for inspiration and likes, sentiment of comments, brands they’ve worked with before, and how they performed in the past for marketers to make an informed decision. By doing so, fake social media influencer profiles can be sieved out more effectively.

4. Make use of emerging technologies such as artificial intelligence

AI can help take the guesswork out of Influencer Marketing; from recruitment of influencers based on the brand’s objectives, provide the ability to forecast influencer performance, predict optimal incentives that would encourage influencers to take a certain action etc.

We will continue to see advancements in AI-powered Influencer Marketing that will help brands understand what content is most likely to resonate and influencer the purchase or adoption decisions of the end consumer.

5. Remember the difference between macro and micro influencers

Micro influencers are those who have between 1,000 and 100,000 followers. This category of influencers have a tight-knit relationship with their audience and tend to have higher engagement and conversation rates. While micro influencers often cover a wide range of niches, they are often more affordable than macro or celebrity influencers.

Macro influencers, on the other hand, have a significantly higher follower base – this ranges from 100,000 up to 1 million followers. Given their wider reach, macro influencers tend to have a more diverse audience as well as an established position within a given community.

Deciding which category of influencers to work with largely depends on the scale of the campaign and its objectives. Brands looking to create product awareness or to reach a wide audience may choose to use a macro influencer, while brands keen to encourage customer conversion or retention may prefer to work with micro influencers. They can convert customers cheaper and more efficiently than any of the other options, making them a powerful option to boost ROI.

6. Choose the right social media platforms for your market 

Asia has become one of the most important emerging regions for social media marketing. The hunt for social media influencers requires extensive knowledge on metrics that brands find most important, aspects they value in an influencer the most and more.

Regardless of the industry or region, ​brands are increasingly interested in incorporating influencer marketing as an inherent part of their digital strategy. We have seen it for some time in industries like fashion and beauty​, but today influencer marketing is ubiquitous and is one of the fastest growing categories in advertising, projected to be a $5-10 billion market by 2020, according to Mediakix.

Platforms that are the most used for influencer marketing in Asia include Facebook, WeChat and Instagram which have a high volume of monthly active users in the millions. One significant platform to take note of is China’s WeChat, with about 963M monthly active users. The functionality of WhatsApp, Snapchat, Messenger, and Facebook are integrated into this application.

The app also takes it up a notch by allowing Chinese users to order meals, book taxis and doctor’s appointments. WeChat even offers an assistant chatbot called WeSecretary to manage administrative tasks such as paying bills, booking airline tickets and much more. With such a wide array of integrated functions on a single platform, WeChat paves the way – and provides opportunities for influencers to build closer relationships with fans as well as potential fans.

 

 

 

Inside China’s Mobile Payments War

In 2018, China is an almost entirely cashless consumer economy, where popular mobile payment apps such as WeChat Pay and Alipay have enabled consumers to go straight from cash, to smartphone payments, leapfrogging the use of credit cards and cheques.

One of the world’s leading players in mobile or e-payment, China saw $15.4 trillion worth of mobile payments handled by third-party platforms in 2017 – more than 40 times the amount processed in the US.

Chinese consumers can buy a pancake at a roadside breakfast stall, order food online, pay credit card bills, or manage stock accounts, all with just their smartphone. In fact, mobile payments are so prevalent that use of cash fell from 63% of transactions in 2011 to just 33% by 2016.

When Alibaba founder Jack Ma carved out his payments business from the ecommerce giant in 2010, he pulled off a coup with multibillion dollar implications. But it was a move by WeChat a few years later that really set the category alight.

The sending and receiving of red packets containing cash (also called lai see in Cantonese, and hongbao in Mandarin) at Lunar New Year is an important tradition across China. But historically red packets were always tangible items, real cash in a paper envelope. Then, in 2014, WeChat introduced digital red packets. The ability to send festive cash to family and friends using just the WeChat Pay mobile payment platform. It was a revolution, and 4 years later in 2018, the idea of digital red packets had caught on to such an extent, that 80% of Chinese consumers sent a red packet via WeChat. This year only 69% sent a physical red packet.

WeChat’s success with digital red packets introduced and popularised the mobile payments category with Chinese consumers, and built a platform for the adoption of wider mobile payments functionality across money transfer, taxi ordering, online shopping, bill settlement, wealth management, for both WeChat – and it’s competitors.

Wireless Payment Methods

In fact, Alipay, owned by Alibaba, now handles nearly 54% of total mobile payment transactions, with WeChat Pay, owned by Tencent, processing around 39%. Across the category, the number of transactions made through non-banking mobile apps increased from 3.8 billion to more than 97 billion over the period 2013 to 2016, and research firm eMarketer recently estimated that more than 61% of global mobile payment users in 2018 are located in China.

Alipay and WeChat Pay have also made their presence felt abroad. Both companies extended their payments services to hundreds of thousands of merchants in regions like Southeast Asia and Europe, targeting outbound Chinese travellers and encouraging them to settle their overseas shopping bills with the apps. Adoption is still low, but merchants are keen to  facilitate easier transactions for high volume and wealthy Chinese tourists.

Within China however, the game is up. The dominance of mobile payment means not only that companies like Alibaba and Tencent manage consumer financial transactions, but as a by product they also control huge lakes of valuable personal data. Already this data is being used to close the loop on the consumer purchase cycle, and up-sell other financial products such as loans, or retail experiences. Alipay has also built Sesame Credit, a personal credit rating platform and Chinese government social rating system, linked to it’s mobile payments footprint. While English language media tends to describe Sesame Credit as an authoritarian system straight out of Black Mirror, Chinese social media users seem to focus more on the advantages than the burdens.

Ay, there’s the rub! As the West agonises over Cambridge Analytica and GDPR, WeChat and Alipay have already built the future of mobile payments. Convenience trumps all, if you let it.

Below we’ve collected key takeaway resources covering WeChat, Alipay and the mobile payments ecosystem in China.

Mobile Payment Usage in China 2017

Tencent: The Growth of the Digital Payment Ecosystem in China

Social Networks & Digital Payment in China

Alipay and WeChat Pay: Reaching Rural Users in China

Digital transformation in China – Take aways from the Alibaba Global Dreamer Program

 

Asia’s Top 1000 Brands – Movers and Shakers

Campaign Asia has just released it’s annual Top 1000 brands survey, covering the biggest brands with Asian consumers, the brands that have risen and fallen furthest in the top 100 in the last year, plus the top 10 smartphone and social-media brands in Asia. It’s a great overview of the digital marketing landscape in APAC.

Biggest Movers in the Top 100

Biggest mover in the top 100 was Uniqlo, with other fashion retail brands, including Lazada, H&M and Zara, also having strong years.

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Top Social Media Brands

Congratulations to Facebook, still the clear leader in social media, and subsidiary brand Instagram also having a strong year, moving into the top 100.

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Top Smartphone Brands

Apple is Asia’s top smartphone brand, with Samsung in second spot. There were strong years for Huawei and Oppo, with big launches and large marketing budgets driving growth in brand perception.

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Asia’s top 5 car, airline, luxury, cosmetic, online retail, banking, beer, soft drinks, fast food and ice cream brands can be found in the slideshow below, and more info at Campaign Asia.

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SEA Digital Ad Spend to grow 13% in 2018

Digital ad spend in South East Asia is set to grow 13% in 2018, accounting for 21% of total regional media budget. That’s up from just 13% of regional ad budgets in 2015.

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Growth will then slow to 5% YOY by 2020 as the market matures and digital hits a 25% share of total ad budgets in South East Asia.

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Grab the spend data for yourself on the Digital in Asia public Google Sheets below:

Data to Drive the Next Era for Media Businesses

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Paula Minardi, Head of Content Strategy, Ooyala

A recent State of the Media Industry 2018 report from Ooyala confirmed data as one of the key driver for businesses and media organisations in the year ahead, with data-driven video top-of-mind for many marketers.

From consumer engagement and privacy to technological advances, content strategies and monetisation, data in its various forms is everywhere and companies are challenged with harnessing and analysing it smartly for greater returns.

Here are some of the top trends driving media companies:

  1. Mobile and Social – What Consumers Want

Audiences today expect video to be on mobile. According to Ooyala’s Q4 2017 video index, mobile’s share of video plays in Asia-Pacific surpassed 60% and the medium had the most share of plays amongst other devices in the region.

It is thus unsurprising that companies have evolved their digital strategies according to consumers’ media consumption habits. In the UK, The Guardian’s Mobile Innovation Lab has experimented with elements like offline mobile news content for commuters to improve mobile news delivery.

Social media video continues to grow, driving media companies to lean more on social to promote and enhance their content, and grow their audiences. Content, strategic partnerships, innovation and branding are key to their growth in the future.

  1. Data and AI for Greater Efficiency

For greater content production and publishing efficiencies, media organisations are looking at deep data, automation and artificial intelligence (AI). The BBC, for example, has turned to technology to help personalise content across India.

The focus on more granular applications of asset metadata has also led companies to AI capabilities. Modern data-driven media platforms connect and streamline content supply chains to help media companies search their content archives for video, audio or text files with facial recognition, language translation, visual text identification, and more.

  1. Immersion with AR and VR

With mobile devices getting more ubiquitous and advancements in 5G connectivity, we’re looking towards a future of more immersive video content, thanks to continuous progress developing virtual reality (VR), 360-degree video, and augmented reality (AR) technology.

A study confirmed that VR increases viewer engagement with journalism, particularly with larger-scale experiences. And VR360 ads were found to perform better than traditional ads, with advanced platforms supporting VR360 playback for VOD and live.

Interest for AR is rising within the wider industry. Consider The New York Times’ integration of AR into its stories, including features published during the 2018 Winter Olympics.

Data at the centre

As media companies strive to be innovative in monetising content and diversifying revenue streams, it is data that will increase their chances for success and lead them into the next era of media.

The Inside Line: The Death of Agencies

What with the yo-yoing of WPP, profit warnings, and Sir Martin Sorrell’s career, all in the shadow of the rise of the management consultants, you may be just as captivated by the current mayhem in the advertising agency and marketing industry as we are.

But we’re not sure that agencies are as dead as some people think they are…

We’ve tried to get a handle on it all from a ‘big picture’ perspective in this short episode of The Inside Line with Nick Fawbert from Mutiny Consulting.

Is it really an instalment of The Walking Dead? What do you reckon?

2018 is “The Year of App” for World Cup marketing

From 14 June to 15 July, almost half of the world’s population will divert its attention to the 32 hopefuls fighting it out for the 2018 FIFA World Cup in Russia.

In the periphery, marketers will engage in a battle of their own, with brands scrambling to ride the hype and global reach of the tournament to push effective campaigns.

While the 2014 World Cup in Brazil was marked by social media, the upcoming tournament in Russia is set to be the World Cup of Mobile. Internet penetration has grown from 42% to 55% since the last tournament, and mobile now makes up 73% of total internet consumption.

Tentpole sporting events are particularly suited to mobile app targeting, as sports fans are typically never far from their mobile devices, and a large portion of content related to the tournament will be consumed on a mobile device.

Live streaming has grown massively over recent years, to the extent that the 2018 Winter Olympics was live streamed by twice the people compared to 2014. In addition, 30% of fans stream sporting events on their mobile devices because it allows them to watch games and events “on their own terms”. Second screening in live sports is also huge – 80% of viewers use their mobile devices to search for player stats and to replay videos of key plays.

Beyond live streaming, several other mobile app categories see uplifts during major sporting events:

A new App Annie reports covers everything brands and agencies need to know about mobile marketing during World Cup 2018.

The App Marketer’s Guide to the World Cup [White Paper]

Sales increase for 51% of online retailers in SEA and Taiwan over past year

Fashion is the biggest ecommerce category, while payment methods and delivery issues are the biggest concerns for online retailers and marketers in Southeast Asia and Taiwan, according to a new report from Econsultancy and Shopee exploring challenges and opportunities in ecommerce across the region.

The results revealed that 51% of online retailers and 41% of marketers saw their online sales rise, but for 28% of online retailers and 29% of marketers, online sales remained the same relative to the past year.

Fashion and accessories was the most popular category on online marketplaces, with 23% of online retailers and 16% of marketers active in it. Health and beauty was the second most popular category, with 17% of online retailers and 15% of marketers offering choices in it.

The survey also revealed that marketers in Vietnam (11%) were the most active in the computers, camera and mobile phones category, edging out Singapore (10%) and Taiwan (10%).

While around a third of online retailers (32%) and marketers (33%) indicated that they did not sell internationally and had no plans to, the ecommerce market in the region is poised to grow with 54% of online retailers and 39% of marketers planning to offer their wares and services to other countries.

Full report available for download here.

Lack of data in creativity leading cause of wasted digital ad spend

Data is a hot topic right now, with the upcoming impact of GDPR top of mind for marketers in the region right now, but according to the latest white paper from IAB Singapore, poor data application in the creative process is leading to a significant wastage in digital ad spend.

As the region’s digital ad spend grows, consumer data has become a massive by-product for brands, but lack of training in digital and data related skills is a key barrier to campaign success.

Research by Adobe Digital Insights reveals that gaps exist in the applications of data-led creativity in digital campaigns for Asia Pacific. 65% of 18 to 34-year-olds prefer ads based on their interests, with a third of the same demographic believing advertisers can do better in personalisation.

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Much of this can be attributed to brands appointing multiple agencies that end up working in silos focusing on distinct and individual KPIs. The lack of digital collaboration ultimately results in wasted advertising dollars.

“The challenge in tailoring digital campaigns lies in recognising where data originates and how they influence creative briefs to develop highly relevant and engaging content. Especially in Southeast Asia, where programmatic is only beginning to take off, brands must be quick to pick up on key learnings, ensuring advertising budget drives toward achieving business bottom lines,” said Miranda Dimopoulos, CEO & Ambassador to SEA, IAB Singapore.

To encourage a data-driven approach, it is imperative on brands to leverage a Creative Communications Process framework across the entire campaign development process.

“As data-driven marketing becomes the new normal, it is important to advocate data-inspired creativity among marketers, agencies and brand owners. Using the Creative Communications Process framework, digital campaigns can be readily optimised with insights from the data signals around us, to develop engaging and impactful creative platforms and campaign ideas,” said Deepika Nikhilender, Senior Vice President, Xaxis Asia Pacific.

Creativity Inspired by Data accounts for current industry needs, with contribution by senior representatives from BBH, Twitter, Digimind, Xaxis, Wavemaker and Unruly.

To get a copy of the Creativity Inspired by Data white paper, click here.

Digital, Tech, Marketing & Start-Ups in Asia

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