Interaction 2017: Group M Global Digital Forecasts

Each year GroupM publishes its overview and speculations on the state of digital marketing and its implications for advertisers. This year’s report – Interaction 2017  predicts that in 2017 digital’s share of ad investment in the developing world will at last have caught up with the developed world, to around 33%.

10 countries have already witnessed digital overtake TV, with a further five expected in 2017, two from APAC; France, Germany, Ireland, Hong Kong and Taiwan.

Interaction 2017

In 2017 it’s challenging to discriminate digital marketing from all marketing. Consumers barely separate their digital and analog lives; little media is published in only analog form and enterprises infuse digital processes into every aspect of their organisations.

However, it’s probably true to say that marketing strategy and marketing services remain more siloed than consumer behaviour, and equally true that marketing and sales organisations remain more separated than they should be given the collapse of the purchase funnel.

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5 Steps to Capture the Valentine’s Day Dollar

With Valentine’s Day hot on the heels of Chinese New Year – itself coming about a month after Christmas – there have been and will be great opportunities for retailers to capture the gift-giving market. Yet, it’s been well publicized that the retail industry is flagging, with data showing that the average vacancy rate of suburban malls, has doubled from less than 1 per cent in 2013 to 2.4 per cent in the fourth quarter of 2016.

The problem is that we’re no longer in an era of business as usual. Retailers cannot employ the same tactics which have worked for years and expect customers to come flocking back. In today’s age, customer experience is the new currency. The strategy of leveraging products to gain a competitive advantage is obsolete when you are fighting with “everything stores” like Amazon and Alibaba which offer almost infinite choice and cheaper prices. When everything is available all the time, at any price, experience is the remaining true differentiator

How can retailers generate powerful experiences to capture today’s new customers (and their Valentine’s day gifting dollar)? It’s a journey to get from being a product-based business to an experience-based business. In its recent “Path of Experience” report, Adobe sheds insights on the 5 milestones to experience-driven commerce:

  1. Segmentation: The first milestone on the journey is to truly know one’s audience. They exist, but the challenge is in finding them, and defining them. Not by demographics, but through shared attributes and behaviours. In practical terms, this allows a retailer to reach many individuals with a collective message and expect a certain desirable result. Each audience has to be large enough to make a difference in revenues, but small enough to be distinct. The answer to this is big data – be it through first party, second or even third party data. This is where a data management platform comes in, pooling all this information so retailers can experiment with traits that help them find these natural groupings
  1. Personalization: With the data, you can now create a special and specific experience for each audience segment. Wooing a customer with a one-sized-fits-all approach is no longer effective today, akin to giving a girl roses when she in fact prefers lilies. Whilst personalization is nothing new, today’s difference is that it can be delivered at scale using automation. By using the digital fingerprints that customers leave behind after every interaction, retailers can build a progressive personal profile that allows them to understand how customers feel, what they do, and ultimately, what customers want.
  1. Omnichannel: Now that retailers have gotten the ability to achieve customer intimacy, the third experience milestone is putting those relevant, personalized experiences where they count. Different customers use channels in different ways—without differentiating between touchpoints and channels, inbound and outbound. The consumer is everywhere. Retailers need to be there as well. And the best way to do this is via the mobile – the most personal device ever. Because of this, mobile often serves as a second-screen or cross-channel resource especially in brick-and-mortar selling. This opens the door for intelligent contextual marketing, where mobile is viewed as a behavior rather than a separate channel or technology. Because the behavior is constant, brick-and-mortar retailers can use mobile to augment the store experience, using various technologies.
  1. Dynamic Content: Experience-driven commerce requires that retailer reimagine what shopping looks like. It’s more about telling a story rather than telling the customer why they should buy the product, instilling a perception of increased value that differentiates from the competition. Dynamic content and shoppable media can bridge that gap, using the latest tools to tell compelling stories that take buyers straight to the checkout line. A great example of this implementation is Amazon Go – reducing barriers to commerce to make shopping a breeze
  1. Real-Time Analytics: As no two customers will share the same purchase journey, it’s important to always know where customers are at. Real-time data allows retailers to watch over the customer’s shoulder, understand the journey and smooth out any rough spots. It makes it easier for retailers to lead the customer from awareness to conversion. Analytics also provides optimization opportunities – and the chance to fine-tune the customer journey through a simple three step process: Measure (customer interactions), Adjust and Improve (the customer journey).

While the journey might sound a bit daunting at the outset, the key is to start small, move forward, and not stagnate. By carefully evaluating their ability to act on the five capabilities described above, retailers should get a better idea of where they need to go. And as they do, the customer experience will surely improve.

For more information, please download the full report here.

4 Social Media Developments to Watch

A lot has changed in the world of social media, but we think these four points deserve a special mention:

The NYTimes Joins Snapchat Discover
In seeing the most respected investigative publisher join Snapchat’s ad-supported channel, publishers the world over are on a hiring spree to replicate The NYT’s move to Snapchat Discover. Snapchat launched Discover two years ago as a tab for long-form content and journalism beyond social media. In a world where Facebook’s Instant Articles feature is largely viewed as a boon to the industry, Snapchat’s Discover tab offers publishers the option of revenue sharing.

Facebook Upends Snapchat’s IPO
Within the month of announcing its plan for an IPO, Snapchat saw a hit in its user engagement numbers as Facebook rolled out a copy of its stories feature. Investor confidence was also shaken by the emergence of allegations that its numbers are off. We don’t expect the pain to last as the same revelations on Facebook’s numbers did little to dissuade investors and advertisers.

Combating Misleading and/or Fake News
It’s always been around and in some cases, it has been profitable, by either flagrantly making up a story or using click bait in the headlines, fake news is nothing new. But since losing the election, liberal media has entered a sand storm decrying fake news as one of the tools that swayed the outcome. The tech industry, largely instilled with liberal values, has chosen sides with Facebook and Google tackling the issue head on. Facebook will be revising its social media trending feature and aim to provide users the sources of publisher’s news. Google, on the other hand, has banished over 200 publishers from its AdSense network for the crime of creating and publishing fake news. Snapchat also stepped up by penalizing content creators that promise content in the headline but redirect to unrelated sites.

Reviving Twitter’s Use Experience
We’ve already talked about why no one is buying Twitter anytime soon, despite all the presidential attention it’s getting. The social media company is doing its best to roll out relevant changes in its usability. The latest of which is a switch from “Moments” tab to an Explore tab instead. Featuring trending topics and live video, the tab will be curated by Twitter’s editors. In a world of rebates focused digital media planning, this may not be enough for Twitter to get back on the horse. Bringing back Jack Dorsey gave the company credibility, but robbing him of executive power has not been. It remains to be seen how digital planners view the change.

Sourav Ganguly is the chief media officer at Centric DXB. He leads teams across digital media buying & planning, performance marketing, eCommerce conversions and search optimization. He can be reached on sourav.ganguly@centric.ae

The New Digital Advertising Ecosystem Part 7: Programmatic Direct and Private Marketplaces

Private Marketplaces, also known as PMPs, are places where publishers offer their ad inventory to a selected group of advertisers. You may also hear buying in Private Marketplaces referred to as:

  • Programmatic Premium
  • Programmatic Direct
  • Programmatic Guaranteed
  • Programmatic Reserved
  • Preferred Deals
  • Private Auctions

Don’t worry, these are all basically the same thing – just different flavours of PMP.

Programmatic Direct combines the best of direct sales with the targeting and automation benefits of programmatic. PMPs are now a popular method of programmatic trading.

For publishers, PMPs give tighter control on which kinds of advertisers and creatives will be displayed on their site or app, while not having to manage individual advertisers like they would in a direct buy.

For buyers, PMPs allow access to premium quality inventory, and all the bespoke benefits of working directly with a seller – but also allow use of data, targeting and reporting from a single DSP dashboard.

Typically CPMs are higher in a PMP because premium advertisers are competing for the highest quality ad inventory on very reputable digital properties.

Each type of PMP does a specific job for buyers or sellers.

programmatic-as-a-means-to-meeting-your-marketing-goals-by-darragh-daunt-incisive-create-ad-effectiveness-16-638

This is a great video from sovrn that covers RTB v PMPs and Programmatic Direct in a little more detail.

Make sure you read the earlier articles in this series to understand basic concepts of programmatic.

Digital in Asia 2017 Overview

Digital growth accelerated over the previous 12 months in Asia Pacific, with internet users up 15% to pass the 1.9 billion mark. There are now also 4 billion mobile phone subscriptions across APAC, a penetration rate of 96%.

These findings have exciting implications for businesses, governments, and society, but they are also testament to the speed with which digital (and mobile) connectivity is changing the lives of people in the region.

More than 1.4 billion Asian consumers now use social media on a monthly basis, with 95% of them accessing platforms via mobile devices – the highest ratio in the world.

Digital in 2017: Southeast Asia

Digital in 2017: Eastern Asia

Digital in 2017: Southern Asia

Digital in 2017: Australia, New Zealand & The Pacific

Source: We Are Social

Augmented Reality and Machine Learning to Impact Marketing in 2017

2016 was an eventful year for marketers: New technologies such as Augmented Reality (AR) and Virtual Reality (VR) captured the imaginations of marketers globally – as Nintendo’s new AR offering, Pokémon Go, took the world by storm. 2016 was also a big year for digital transformation (DX), as enterprises rapidly prioritised DX at the center of their corporate strategy, and marketers rapidly embraced data analytics in order to drive marketing decisions.

marta-adobeMarta DeBellis, Adobe APAC Vice President of Marketing offers her views on some big milestones and game changers that will shape the digital marketing landscape, as we move into 2017.

1. AR, VR and Machine Learning will continue to have an impact in 2017:

  • The emergence of technologies like AR, VR and machine learning will shape marketing in 2017 and beyond. AR and VR will change the way marketers can engage with customers and drive experiences beyond what is possible today. AR and VR will change the way marketers can engage with customers and drive experiences beyond what is possible today. The challenge for marketers will be to learn how to create content for these formats to fully leverage the opportunities they offer.
  • Machine learning and data science will offer significant productivity opportunities for marketers, allowing them to focus their time on their overall strategies and away from day-to-day analytics and data management. Artificial Intelligence (AI) and machine learning have become ubiquitous in the technology industry, and a lot of great work has been done to build out horizontal frameworks to solve large-scale problems – from accurate speech recognition to computer vision.
  • We recently introduced Adobe Sensei, a framework and set of intelligent services, with deep expertise in AI, machine learning and deep learning, built into the Adobe Cloud Platform which dramatically improve the design and delivery of digital experiences.
  • Understanding how customers are consuming video content remains an opportunity for marketers in 2017. Video has been the ‘next big thing’ for several years now and I don’t think marketers have it all figured out yet. Marketers will get one more shot at leveraging this opportunity fully next year. Adobe’s acquisition of TubeMogul shows our focus on video in marketing campaigns. It will create the first end-to-end independent advertising and data management solution that spans TV and digital formats, simplifying what has been a complex and fragmented process for brands.

2. Competitive advantage (through exceptional CX) will be the biggest driver of digital transformation

  • Competitive advantage is the biggest driver of digital transformation and underlying that is customer experience. 
  • Customer experience is the new competitive differentiator of success and is separating those brands which are pushing ahead with transformation, and those trapped in a business model of yesterday. Today’s digital landscape is overflowing with people interacting across multiple devices, whether it’s mobile devices, wearables, tablets or even car dashboards. When new products and innovation come onto the market, people want to be able to use it. The increased expectations of consumers have brought us to a tipping point where experience must be at the center of everything brands do.
  • In 2017 marketers need to walk in the shoes of customers and truly understand the experience their brand is offering. Customers are interacting with brands across many different touchpoints and marketers need to be aware of how this experience affects the overall customer journey.

3. Digital marketers must still place emphasis on creativity.

  • Data has given marketers the power to demonstrate ROI and drive business growth. However, it’s crucial they remember that creativity still plays a significant role. Creating amazing content that is personal and emotive is key to delivering incredible customer experiences.
  • Creativity and design-led thinking are central to business success. Adobe’s 2016 Creative Pulse survey highlights an overwhelming number of respondents who think so. 89% of APAC respondents say their businesses are placing more importance on creativity and design thinking. 56% of APAC respondents feel that they are creating a bigger impact within their organizations, compared to two years ago.
  • Content velocity – being able to create amazing content quickly, and at scale, should also be a focus for marketers in 2017. The key is to not make more content, but to make content more personalized and engaging.

New platform offers real time performance buying for Digital OOH

New digital advertising firm Rodeo have created Malaysia’s first interactive in car advertising platform, which provides advertisers with a captive audience on a programmatic buying platform.

Clients already signed up to the service include Lenovo, Li TV, Sling Apps, Zepto, Rainfilms, and eBizu.

The innovative concept works by installing 10.1inch HD tablets on the back of car seat head rests, which entertain passengers and creates a dynamic platform that allows interaction with brands, offers and promotions designed to catch the passenger’s eye.

According to Rodeo CEO, Valens Subramaniam, the majority of passengers spend 10 minutes or more travelling per car journey. Advertising slots are sold in blocks of 16 (max) and run on a loop. Each advertisement is shown for 15 seconds, ensuring that ads have high frequency to maximise the exposure.

A major challenge for today’s advertisers is maintaining attention long enough for potential customers to buy into the benefits of products and services offered. Rodeo’s digital out-of-home (DOOH) media applications solve this problem by placing advertising platforms in vehicles, thereby maximising customers’ engagement with the content.

The interactive platform allows passengers to provide their contact details and ask for more information on a particular product or service. Leads are funnelled through to advertisers in real-time. Clients can also track customer data in order to enhance understanding of target audiences, and cutting-edge technology such as facial-recognition will be able to assist advertisers in providing personalised content.

Rodeo’s DOOH system also presents vital public service announcements and real-time information such as police reports on crimes or missing persons, which can help resolve these issues quicker by increasing the reach of information being spread.

Mr Valens – former CEO of iCab Malaysia – spoke of the benefits it can bring to advertisers and drivers. “In recent years, advertisers have faced a considerable challenge of keeping the attention of potential customers as they promote their products and services. Our innovative media application helps to solve that problem by offering a captive audience for each advertiser, every time.

“Our full-time drivers complete, on average, 140 rides per week, which translate to over 550 unique passengers per month, per driver. This is an excellent opportunity for advertisers to maximise their reach and generate real-time leads.”

He added, “Our drivers are also offered incentives to boost their income by generating additional income for themselves, as well as meeting their KPIs, and so this is a perfect opportunity for everyone involved to take advantage of the benefits offered by the in-transit media industry. It is truly an exciting time for the Rodeo team, and it is my goal to expand to other Malaysian states and South East Asian countries over the next two years.”

The DOOH media industry could be worth over $US60 million to Malaysian economy by 2019.

China’s Digital Advertising Consumer Landscape

With overall access to the Internet in China increasing, it’s interesting to understand who is going online, and how they are getting there.

Chinese internet users are more likely to be under the age of 30, have a higher education than previous generations and earn an average income.

These netizens are increasingly accessing the Internet though mobile devices. Not only is it more convenient for them, but the majority of Internet users find the experience comparable to or even better than desktop.

China’s Advertising Landscape [Infographic]

News and Industry Resources for Digital Marketing and Media in Asia.