Tag Archives: advertising

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?

A Duopoly of Convenience: Facebook & Google Tap New Growth in APAC

by Tom Simpson

Latest data reveals that in Q1 2018, Facebook and Google ad revenue grew by 40% year-on-year across Asia Pacific (ex. China), while ‘The Rest’ – every publisher and ad tech business outside the duopoly – saw a fall in revenue of 20% over the same period.

Total APAC (ex. China) Digital Ad Revenue (USD billions) (1)

Looking at the top-line, digital advertising is experiencing strong growth across APAC, with ad spend up $0.85 billion year-on-year in 2018. But it’s clear that while many publishers and ad tech businesses are still growing, in reality that additional $0.85 billion revenue is comprised of $1.63 billion more for Google and Facebook, and $0.78 billion less for everyone else.

As a result, Facebook and Google revenue hit 65% of APAC total digital revenue, up from 51% in Q1 2017. This means twice as much budget goes to the duopoly as every other digital publisher and ad tech platform in the region put together.

APAC (ex. China) Q1 2018 Digital Ad Revenue Share (%)

Google and Facebook also grew in terms of revenue share across all media, taking 20 cents in every 1 dollar spent in the region. This is up from 15% – or 15 cents in the dollar – last year, and represents an increase in budget flowing from traditional media, including TV and OOH.

The duopoly in perspective

From a global perspective, Facebook and Google have been strengthening their hold over digital advertising budgets for several years. Asia Pacific has actually seen a slower shift in spend than the US or Europe, where Google and Facebook already account for 80% of digital ad revenue.

While there is a huge amount for ad tech to be positive about in 2018, and plenty of genuine tech innovation on the supply side outside the duopoly – mobile, blockchain, digital retail, apps, influencers, and permission-based marketing, are all areas seeing new thinking and growth – the publishing and ad tech industries are in a challenging space right now. Concerns over ad quality and complex value chains, in addition to the impact of Facebook and Google, have left VC money looking for safer havens. With marketing clouds, telcos and consultancies worldwide positioning for unified marketing technology stacks – the acquisition rumours at Cannes in 2018 were even more outrageous than those around the downfall of Sir Martin Sorrell – mad-tech consolidation started several years back, and looks set to accelerate in the years ahead.

But it’s not only the supply side facing increased headwinds. The brave-new-era marketing stacks are already busy hunting brand agency business direct from the major holding groups, using their newly enhanced strategic and tech positioning to situate themselves both upstream closer to the CEOs ear, and downstream on the battlefield of media execution across newly rationalised, open, and addressable programmatic auctions. Whether it’s okay for the auditors to also do the work, is another question of course.

Even Google and Facebook cannot be sitting easy in the face of the increased scrutiny and margin pressure promised by these changes, alongside recent brand safety issues, an emerging 3rd advertising player in Amazon, and a resurgent Twitter. Growing antitrust concerns in the US and EU spurred by a public revolt against the increasing power of the silicon valley tech titans, fears over over-reach into our everyday lives and loss of jobs have also made headlines in 2018. Google and Facebook are yet to crack China, but each is making moves with greater and lesser degrees of success to grow influence in this hugely important global market.

The age of convenience

Human beings have long sought means to make our lives easier. From earliest times with the invention of the stone hand axe, to the swarms of gig economy apps which today get people to clean your apartments, drive you around, do your shopping or deliver you just about anything you can think of, at the touch of a smartphone screen, convenience has been the driving force behind much human-made ingenuity. Most of us in the modern world now expect gratification to be on-demand.

New ways of offering services to customers have significantly changed how organisations and companies operate and compete in all markets. So it is no surprise that the age of convenience has come to our industry. What Uber did for transportation, Netflix for TV, and AirBnB for accommodation, Google and Facebook have done for marketing. And they are justifiably reaping the rewards.

In the on-demand era, there is only one guarantee: money flows to those who offer – or at least appear to offer – the comfort of convenience. This is the inconvenient truth.

Notes

As per last year, numbers are based on Facebook and Google publicly filed earnings information and best industry advertising revenue estimates via the IAB, Zenith and Emarketer among others – but someone out there may have a better view, so corrections welcome. The major assumption in this data is to exclude Chinese advertising spend from Google and Facebook earnings information and APAC industry spend estimates. This is to avoid distorting the data by including a market where Facebook and Google have small (although not insignificant) advertising businesses. All the data is available on a public Google sheet (yes, sorry, it’s Google!) here.

Key References

Facebook Reports First Quarter 2018 Results: https://s21.q4cdn.com/399680738/files/doc_financials/2018/Q1/Q1-2018-Press-Release.pdf

Facebook Q1 2018 Earnings Presentation
https://s21.q4cdn.com/399680738/files/doc_financials/2018/Q1/Q1-2018-Earnings-Presentation-(1).pdf

Alphabet Announces First Quarter 2018 Results
https://abc.xyz/investor/pdf/2018Q1_alphabet_earnings_release.pdf

Vietnam: Digital Trends & Consumer Landscape Overview

With a population of more than 96 million, a median age of 30 years, and internet penetration standing at 50 million, or just over 54% of local population, Vietnam is a young and dynamic market representing a huge commercial opportunity for brands, marketers and investors. Vietnam digital trends emerge fast in this exciting consumer space.

Since 2013, the last time we took a detailed look at Vietnam’s digital market landscape, so much has changed in terms of digital trends. Most notable has been the rise of mobile as a channel, driven by lower handset costs and faster 4G connections. The mobile internet experience now dominates in Vietnam, with consumers naming mobile as the second most important source of news after TV, the most important “big ticket” purchase and their second favourite daily activity after spending time with family and before hanging with friends.

Digital technologies and online connectivity promise to be a key driving force in the growth and transformation of the Vietnamese economy over the coming decades, with the IT industry expected to contribute up to 10% of the country’s GDP by 2020. Ho Chi Minh City is being touted as the Silicon Valley of Asia with blockchain, fin-tech, health-tech and digital accelerators playing a key role in the emerging start-up, hipster coffee shop and co-working space culture.

Below we’ve collected a series of takeaway resources covering the key digital trends in Vietnam.

Mobile Ecosystem Report Vietnam 2017/18

Vietnam mobile ecosystem and digital sizing report from Group M and the MMA.

Digital in Vietnam 2018

Key data covering the Vietnam digital landscape.

Digital Marketing Agency & Marketer Landscape in Vietnam

Vietnam digital marketing overview from an advertiser and agency perspective.

Vietnam Digital Landscape 2017

Detailed overview of digital stats and consumer internet data in the Vietnam market.

Vietnam Digital Trends 2017

Trends to watch out for across the Vietnamese consumer internet.

Vietnam ICO & Blockchain Market

Overview of the emerging blockchain and ICO scene in Vietnam.

Vietnam Today – The Digital Economy

In depth report looking at the future digital transformation of Vietnam.

PWC Vietnam Spotlight

Deep dive into Vietnam as an investment opportunity and information technology driven market.

Vietnam Esports Market Report 2018

Insight into the growth of Esports in Vietnam..

In terms of other resources, check out Vietcetera for wider coverage of Vietnam, Tech In Asia for tech news, or Geektime and ICTNews for tech news… if you speak Vietnamese. Finally, you can find out all the practical information you need to know about the start-up scene in Vietnam at this Google Doc.

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.

0_500_750_0_100_campaign-asia_content_20180606084401-08_Up&Down

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.

0_500_750_0_100_campaign-asia_content_20180606084401-01_SocialMedia

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.

0_500_750_0_100_campaign-asia_content_20180606085646-02_Smartphone

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.

chart (4)

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.

chart (3)

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

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]

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.

IAB_LinkedIn

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.

Mobile to account for 62% of India digital ad spend by 2021

AppsFlyer has just released it’s “State of App Marketing in India” report, offering insights into India’s mobile marketing landscape, the latest trends and how to navigate India’s mobile ecosystem.

India is the world’s fastest growing mobile market, faster than even China, with the country now accounting for 10 percent of global smartphone shipments, according to IDC. Indian consumers have a relatively high in-app buying rate compared to the global average, especially in shopping apps.

India’s mobile ad spend is predicted to have double-digit growth over the next few years, meaning mobile will account for just under 62% of digital ad spending’s $2.80 billion in 2021.

India’s App Economy [Infographic]

AppsFlyer India App Economy Infographic
The report looked at three broad categories of shopping, travel and entertainment apps, and also revealed other key findings:

  • India ranks sixth globally in terms of number of minutes spent on apps per day.
  • There was a 200% increase in the average number of installs per app when comparing January 2017 to January 2018
  • India suffers from a high uninstall rate due to limited storage space in the Android dominated market. Close to one third (32 percent) of installed apps are deleted within 30 days. Retention is also a challenge with only about 5% of users active 30 days after installing an app.
  • India is increasingly attractive to non-Indian apps, especially Chinese ones. More Chinese apps are now in the top 200 compared to Indian apps. The share of non-Indian apps in the categories of shopping and travel grew by 84 percent and 45 percent respectively. In contrast, the share of Indian-based apps has risen year on year in the entertainment category.

The State of App Marketing in India report analyzed data from different time frames throughout 2017, with a sample of 1 billion plus app installs, 4 billion app opens, and $400 million generated from in-app revenue.

The full report can be accessed here.

 

Myanmar Digital Trends 2018

Myanmar is going through a digital transformation. AdsMy, a local marketing tech platform, have produced a trends deck covering digital marketing and consumer behaviour for Myanmar in 2018. Programmatic, mobile, video, native and digital advertising are all highlighted as growth areas.

Myanmar is extremely hot with VC investment right now, built on the amazing speed of consumer growth in mobile and app usage.

New Tech Heats Up APAC Ecommerce Market

Criteo launched two new solutions in APAC this week – Criteo Audience Match and Criteo Kinetic Design with Video – to help retailers and brands deliver seamless and relevant shopping experiences across all devices and channels.

Using customer relationship management (CRM) or data management platform (DMP) data to accurately target audiences across web, mobile browser and apps, Criteo Audience Match provides marketers with a new way to re-engage their customer base with paid display campaigns. Criteo has built a foundation of deterministic IDs within Criteo Shopper Graph, enabling beta customers to see a match rate of more than 60 percent of their existing client lists with online profiles.

Criteo Kinetic Design with Video automatically optimises every visual aspect of an ad to inspire and engage a shopper. Kinetic Design already allows for more than 17 trillion variations from one base design in display ads. This has been now expanded to incorporate video, creating personalized video ads that feature relevant products based on Criteo’s complete understanding of the shopper. These video ads are created automatically, on-the-fly, and appear across web and mobile.

“Collaboration in an open ecosystem levels the playing field and paves the way for commerce companies to shape their future. This is especially crucial for eCommerce companies in Asia-Pacific where the market is expected to grow to more than US$3 trillion by 2021,” said Huang Hanming, “We have developed Criteo Commerce Marketing Ecosystem to unleash the value of collaboration and the power of data to all who participate.”

As consumer video consumption continues to grow, Criteo’s clients can now use video to relevantly re-engage shoppers without production time, resources, or costs. Video is delivered in a non-intrusive manner to provide a seamless browsing experience – in app, in feed or on a website. Criteo’s video capability also allows marketers to take advantage of video ads on a cost-per-click basis.

“Understanding consumer purchasing behavior is challenging for retailers given that shoppers are on more platforms than ever before, with collected data being difficult to integrate and analyse, at scale,” said Alban Villani, General Manager, Southeast Asia, Hong Kong and Taiwan, Criteo. “To help retailers and brands overcome this challenge, Criteo Audience Match and Criteo Kinetic Design with Video, as part of a robust suite of commerce marketing technologies, will support the full shopper journey, enabling brands to create relevant and engaging experiences for customers online and offline.”

The launches were underpinned by a new study in collaboration with Forbes and titled highlighting the value of data collaboration to better meet customers’ needs, drive value and compete.

Story by Damian Duffy