A weekly round-up of the industry’s top stories and research curated by the ARF.
Category: percentage
Food and personal-care supplies: 52%
Auto and vehicle related: 16%
Gifts and transfers to people: 11%
General merchandise: 9%
Entertainment and transportation: 4%
Medical, education, personal services: 3%
Government and nonprofit: 3%
Housing related: 1%
Financial, professional, misc. services: 1%
Via HocusFocus. (source: WSJ)
(this is part two of a session on this topic)
Gerard Broussard, Principal, Pre-mediated Media
He introduced “Jolt” which is an alliance of consulting firms sharing a central belief: the future of marketing is about high-quality, transparent targeting data and modeling. The “Ingredients” behind data is often a mystery. Gerard talked about the “Ingredients” concept: What are the “ingredients”, that is, methods, data sources, time frame, number of records, market coverage, reporting level (e.g. households), analysis methods, etc. of a study.
Jane Clarke, CEO & Managing Director, CIMM (Session moderator)
Jane asked the panel’s opinion on the “ingredient” concept and there was strong sentiment in favor of moving forward, starting with discussions on the right elements to feature in a research “ingredients” list.
Louis Jones, EVP, 4A’s
From the agency community, the answer to doing this is, “Yes, please.” We need more confidence that the numbers, methodologies and techniques are accurate. It is a journey (to execute this) and we should start “simple.”
Rick Erwin, President, Audience Solutions, Acxiom
We love this idea. We must do it. But it is not going to work very well because it is not sufficient. What we really need is accreditation. Further, he asked: Will the self-reported labels be accurate; how much will mislabeling become an issue?
George Ivie, Executive Director, Media Ratings Council (MRC)
We want to have more coordination between industry groups. One of the things we need is standard methods for validating the data. We should also consider the summary disclosures available from data providers. There are often supplementary details as well.
Jim Spaeth, Partner, Sequent Partners
We have been talking to virtually all the key providers and the consensus is that this is a fundamental issue. It is a good first step. We have to start somewhere. It needs all the constituencies, it is complicated. There is a lot of work to be done to obtain a document that guides the industry.
An article on this topic by Scott McDonald, ARF President & CEO, was recently featured in Forbes with the title, “Data Quality Issues Vex Marketers: Is Ingredient Labeling a Solution?”
You can read his contribution via this link.
Seph Zdarko, Quantcast
Last-touch attribution is overly simplistic. He compared last-touch attribution to giving a trophy in a relay race only to the last runner on the team who carries the baton to the finish line.
A consumer’s first visit to the advertiser’s site after a campaign begins is a crucial inflection point that is not properly accounted for in many multi-touch attribution models. That first visit represents a critical transition from upper-funnel to lower-funnel on a customer journey. Moreover, it also represents a good point to delineate between the use of first-party and third-party data, because it is the point at which a cookie can be dropped on the visitor.
Quantcast’s “split-funnel” attribution framework divides the touchpoints in the online consumer journey between pre-site-visit and post-site-visit touchpoints.).
He introduced a few metrics in his presentation including: First-visit conversion rate: The percentage who convert on the first visit to an advertiser’s site vs. subsequent visits provides a sense of the importance of prospecting touchpoints vs. re-targeting touchpoints.
Tom Webster, Edison Research
This presentation was based on a survey of 1,600 of whom half were “Smart Speaker” owners, sprinkled with video clips of one-on-one interviews with 15 families who owned smart speakers. The overall theme of the presentation was that these early adopter owners report that smart speakers can change the lives of their owners, particularly the parents of young children:
The kinds of behavior that Smart Speakers may replace, according to Edison, include:
The top three uses of the devices, according to the survey, were music (68% using it “regularly”), weather (58%), and general questions (52%). AM/FM radio were further down the list, with about one third using the devices “regularly” for AM/FM radio (38%) and news/talk (32%). (Note: These percentages came from an earlier Edison report which was alluded to but not shown during the Ad Week presentation.)
The time of day at which Smart Speakers are used most frequently for audio on weekdays was afternoon drive-time (3 PM to 7 PM), followed 7 PM to midnight. Listening frequency at all times of the day was higher for owners with children in the household.
90% said they wanted to buy a Smart Speaker to listen to music. This was followed by “to ask questions without needing to type” cited by 87% as a reason for wanting a Smart Speaker. Sixty-two percent wanted a Smart Speaker “to hear better music than what’s found on radio,” and 45% said that they wanted one “to replace an old stereo or radio.”
Edison also asked the non-owners whether they were interested in Smart Speakers, and, if they were, why they hadn’t bought one. The cost and privacy ranked high as obstacles to purchase among those who were interested in the device.
Use this link to watch the full presentation.
For the first time in six years, a majority of respondents to McKinsey’s latest survey on economic conditions say their home economies are on the right track. Moreover, nearly as many respondents expect their economies to continue improving in the months ahead. The buoyancy is especially pronounced in developed economies, where respondents’ current views on domestic conditions surpass by far what, earlier this year, they expected would be the case now. Their views on the world economy also remain more positive than negative. But in respondents’ estimation, geopolitical instability and asset bubbles have become more pressing risks to near-term global growth.
Seventy-two percent identify geopolitical instability as a risk to growth, the largest share to say so in nearly two years, and those in Europe are the most likely across regions to cite it. Changes in trade policy are cited second most often—although far less often than geopolitical instability—and selected most frequently in North America.
As for the long term, geopolitical instability remains top of mind as a risk to the global economy—carrying associated risks at the company level. In this survey, we asked for the first time about the effects of long-term trends and global forces on respondents’ companies. It is perhaps not surprising that more than half of respondents believe the cumulative effects of technological innovation will have the greatest effect on their business over the next ten years. But they also place policy decisions and geopolitical and digital risks among the top-three trends.
To read the complete article visit McKinsey.
Elizabeth Luke, Senior Communications Manager, Ads/Revenue, Twitter
“The future of the marketing industry is not scale. It’s scaled engagement. Do you want tonnage or do you want connection?”
Marc Lore, CEO of Walmart E-commerce for the US
“I don’t think it will be too long, probably within the next five to 10 years, that you’re going to be able to talk to a voice assistant in the same way you would to somebody on a shop room floor, that knows all the information about the products, but more importantly knows everything about you, knows you as well as your own mom and dad does.”
Scott McDonald, ARF President & CEO – We find ourselves in a situation where marketing is increasingly data driven but where we don’t have any clear measures of the quality of the data underpinning that marketing.
We need much better standards around data quality to provide better guidance to the market. An unambiguous rating system that can offer an independent ‘grade’ on the quality of data sold for ad targeting, might be possible in the next two years.
It is a distinction between transparency and some scale of quality.
Howard Shimmel, CRO, Turner Broadcasting – There is no business growth without good data.
If the data is a little wonky you can miss the upside (of revenue).
Vendors need to these advanced data sets accredited and validating them post campaign.
Jonathan Steuer, CRO Omnicom Media Group – In a multi-media environment, data errors get multiplied.
You want to know what’s in it (the data) and the best metaphor we have for that is the FDA and food labels – you know the list of ingredients, the number of calories, the calories from fat, etc. (note – this may become an industry initiative).
Pete Doe, CRO Clypd – Is your data as accurate as you think it is? Is it fit for purpose – if you are planning millions of dollars on advertising (the data) the better its quality should be.
Abby Mehta, Senior VP, Marketing Insights & Media Analytics, Bank of America – We need to know our audiences well, the need state, the mind state, and that’s where data come in. We don’t have a lot of chances to get this right.
We need a framework of auditing.
(The session that followed was a continuation of the topic, but with other other industry leaders, will be featured in the October 12, 2017 issue.)
Rick Gomez, Target EVP & CMO – We were able to use the data and insights for merchandising. In the Pin 100 (Pinterest’s annual top ideas to try) for example, we noticed flamingos were being “pinned” a lot. We put flamingo merchandise at the (store) entrance, and it sold out.
Brand search is an open field that a store like Target, which carries so many options, should take advantage of.
Tim Kendall, Pinterest President – Where Pinterest brings to the table “pins” or essentially “human curation” of say, an image of a chair, people using that chair – for us that has marketing implications about how we advertise that item.
Pinterest data shows that that among people who are starting to plan (a project, like a baby nursery), 97% of queries don’t have a brand. People are looking for something but don’t know who they want it from. That’s where you (Target) want to be.
How do we shorten the distance between inspiration and purchase? We’ve seen in some of our data, testing with other retailers that when Pinterest is part of the flow, that distance collapses, by around 40%.
The panel focused on two issues: the value of attention research (as conducted by TVision) and the importance of attention as an indicator of context effects. Attention as part of the currency? “Not yet” seemed to be the consensus.
Dan Schiffman, CRO & Co-Founder TVision Insights – promoted their measures and studies of attention, emphasizing they have a scalable solution.
Laura Galietta, SVP, Ad Sales Marketing & Branded Entertainment, Scripps Networks – described research indicating their content provides a particularly good context for advertisers (a “happy” and safe environment).
David Campanelli, EVP, Director of Video Investment, Horizon – revealed they are doing emotion context effects research with Magid Research.
Nora Zimmett, SVP Programming for The Weather Channel – When you have a long duration event like with hurricanes, people stay on for hours or days without changing the channel and you have a viewership that is going to see your ads because you are locked in.
Damian Garbaccio, EVP of Nielsen Marketing Cloud – Programmatic has improved with age, but it’s not perfect yet.
Jason Tollestrup, Director of Programmatic Advertising & Business Intelligence, The Washington Post – The industry is somewhere between the second and the third inning in terms of maturity. I think we’re still really early on in this process.
Tim Cadogan, OpenX CEO – If all you have is just performance metrics, you really have to work on them and make sure the site is performing well and the buyer can hit the campaign metrics.
Regardless of the kinks, programmatic is on its way to becoming the default transaction system for digital media.