News You Can Use

Mobile Messaging to Reach 1.4 Billion Worldwide in 2015

• Posted: November 16, 2015

Mobile phone messaging apps will be used by more than 1.4 billion consumers in 2015, up 31.6% from the previous year according to eMarketer. Seventy-five percent of smartphone users worldwide will use an over-the-top (OTT) mobile messaging app at least once a month in 2015. In addition, eMarketer predicts that the number of chat app users worldwide will reach 2 billion and represent 80% of smartphone users by 2018.

According to Cathy Boyle, eMarketer’s Senior Analyst, Mobile, some of the key drivers of mobile messaging’s growth are:

-The growing interest of consumers in intimate forums for social sharing.

-The multiple modes of communication offered by messaging apps.

-The growing number of features offered, including peer-to-peer payments and mcommerce.

On a regional basis, OTT messaging apps usage is high in the Asia-Pacific where 58% of the world’s messaging app population lives. In addition, Latin America shows strong usage with 68.1% of mobile internet users engaging with a mobile messaging app once a month.

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Interaction Helps Brands Stand Out in the Vast Volume of Video

• Posted: November 16, 2015

Mike O’Brien, writing for ClickZ, points out that video has become a standard expectation for digital campaigns.  As a result, it has become more difficult for a video to stand out.  O’Brien explains that brands are increasingly making their videos interactive.  Consumers who feel actively involved with the brand via interactive videos will likely have longer and deeper levels of brand engagement.

Erika Trautman, CEO of Rapt Media, suggests that “creating an opportunity for engagement creates connections with the audience and makes them more likely to come back again.”

O’Brien highlights two companies that have effectively used interactive videos: Dos Equis and L’Oreal.  In the Dos Equis video, the viewer is a guest at the masquerade party, and interacts with the Most Interesting Man in the World.  L’Oreal provides a tutorial to teach viewers how to use its products in unconventional ways.

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Branded Content Boosts Purchase Intent According to a Study by IPG and Google

• Posted: November 16, 2015

High-quality branded content is effective at increasing brand favorability and intent to purchase according to a study conducted by IPG Media Lab and Google. This global study surveyed 14,780 consumers and included brands in 19 categories in 10 countries. Jon Lafayette’s article in Broadcasting and Cable provides some of the conclusions from this study.

Among these conclusions:

-The companies defined branded content as content that lives on its own, produced by and for the brand, as opposed to content produced by someone else that the brand affixes it to.

-Consumers found branded content more entertaining, uplifting, educational, novel and exciting than standard video ads.

-The study found that high-quality content led to a 10% greater increase in purchase intent, compared to lower quality content.

According to Kara Manatt, VP Consumer Research Strategy at the IPG Media Lab, “Our data indicates there are clear best practices marketers can take advantage of when creating and deploying branded content. Naturally, marketers spend more time and budget creating this custom content, so having these guidelines based on improving brand perceptions and driving purchase intent is invaluable.”

Among these guidelines:

-Mentioning the brand more often increased the perception that the content was designed to “sell a product,” but the information was still trusted.

-For high-price purchases, purchase intent was higher with more brand mentions.

-Placing content on a premium site can have a halo effect on brand preference and intent to purchase. The more consumers liked the site, the greater the impact the branded content had on those consumers.

IPG Media Labs and Google plan to continue studying branded content.

For more on this topic, check out the Advertising Tab in Morning Coffee.

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The Effectiveness of Comparative Versus Non-Comparative Advertising: Do “Strictly” Comparative Ads Hurt Credibility of Non-Professional Service Brands?

• Posted: November 16, 2015

A September 2015 Journal of Advertising Research article by Fred Beard, University of Oklahoma, investigated the effectiveness of comparative advertising for a prominent service brand. Chevy’s certified service for automobile maintenance was compared with Ford’s certified service.

Results from this study included:

-The potential for negative outcomes is a strong possibility when prominent non-professional service brands identify one other by name in their campaigns.

-Services advertisers who use strictly comparative advertising are justified in doing so if their target audiences are mainly younger consumers and if claims of believability are not crucial for advertising effectiveness.

-If message or claim believability is critical, non-comparative advertising likely will be more effective than comparative advertising, regardless of target audience age.

The author presented the following guideline for marketers:

Prominent brand advertisers should be wary about using strictly comparative advertising, even that which could be considered low in negativity, and especially if older consumers are the target audience. The possibility that services consumers follow a fourth hierarchy-of-effects process—feel–do–learn—further suggests how serious negative affective and conative consumer responses might be for services advertisers especially.

The author notes that the results of the study were limited to comparative advertising in print media.

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MRC Issues Ad Fraud Rules

• Posted: November 9, 2015

The Media Rating Council, the official arbiter of media ratings in the U.S., has issued new guidelines for digital media vendors and companies as a result of the growing concern over online advertising fraud.  These guidelines, which will address the detection and filtering of “invalid traffic” generated by bots and other non-human sources, are discussed in this Media Post article by Erik Sass.

The rules are presented in a document entitled, “Invalid Traffic (IVT) Detection and Filtration Guidelines, Version 1.0.”  Among the key points in the guidelines: the requirement for enhanced internal controls covering employee behavior policies, partner qualification processes, analysis of acquired or paid traffic, periodic risk assessments, and the correct procedure for challenging a decision to remove invalid traffic.

These rules apply to all measurement products that involve tagging, beacons, cookies, redirects, and other types of message tracking, and to various types of census tracking.

The Council expects all MRC-accredited organizations to comply with the new guidelines. Although the rules take effect immediately, accredited organizations have a grace period of 180 days to comply with them. All future applicants for accreditation will be evaluated for compliance with these rules.

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TAG Rolls Out ‘Approved’ List and Payment IDs to Fight Ad Fraud: Group Takes Aim at Fraudsters With Two-Step Verification Process

• Posted: November 9, 2015

TAG, the marketing industry’s Trustworthy Accountability Group announced a new anti-fraud initiative, “Verified by TAG,”  which consists of two components: a registry of “verified” companies, and a new payment-identification system. The goal of this initiative is to bring transparency to the digital ad ecosystem.

Companies in the digital ad supply chain can now apply to the TAG Registry to be verified by TAG as a trusted advertising party. Registered companies will receive a TAG-issued ID that will identify their ads to partners in the supply chain.

According to TAG’s CEO, Mike Zaneis, “This is a first-of-its kind program to create an evergreen market of buyers and sellers with lots of different channels.”

TAG is also introducing a payment-identification system.  The goal of this system is to create a record of who gets paid for every impression, and therefore, prevent criminals from receiving ad dollars by selling fake impressions on sites they list in ad exchanges.

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Pew: Smartphones Top Computers for 18-29 Year Old Consumers

• Posted: November 9, 2015

John Eggerton, reporting for Broadcasting & Cable, provides highlights from a recent Pew Research Center report, “Technology Device Ownership.”  For the first time since Pew has been tracking device ownership, more young adults, 18-29 years old, own a smartphone (86%) than own a computer (78%).  Tablet ownership has also shown strong growth with young adults, rising to 50% in 2015.

Smartphone ownership for adults 18-49 and adults in higher income levels are close to “saturation adoption.”  The report did not find smartphone ownership differences by race or ethnic group.

Of the seven devices included in the Pew surveys, cell phones, including smartphones, are the most commonly owned device among all U.S. adults at 92%, followed by computers at 73%, smartphones at 68%, tablets at 45%, MP3 players at 40%, game consoles also at 40%, E-book readers at 19%, and portable gaming devices at 14%.

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How Corporate Sponsors Can Optimize the Impact of Their Message Content: Mastering the Message – Improving the Processability and Effectiveness of Sponsorship Activation

• Posted: November 9, 2015

 

The September 2015 issue of the Journal of Advertising Research addressed the issue of corporate sponsorships and the impact of the content of activation messages on sponsorship effectiveness.  Francois A. Carrillat, University of Technology, Sydney, Business School; Alain d’Astous, HEC, Montreal; and Marie-Pier Charette Couture, Nikon Optical, Canada, investigated these factors through an experimental design using real video stimuli with 720 adult consumer participants.

Sponsorship activations can differ either according to their focus (on the brand versus on the event), or their scope (promoting a product versus a corporate image). Statistical analyses supported the authors’ hypothesis that sponsorship activations that are consistent with respect to their focus and their scope are easier for targeted audiences to process. In turn, this enhanced “processability” leads consumers to develop a positive response toward the sponsor.

The authors concluded that:

-Sponsorship managers must realize that activation messages vary with respect to their focus and scope and that this represents a key determinant of sponsorship success.

-Choosing between a brand focus and an event focus in the context of sponsorship activation is a strategic decision—and a common challenge facing sponsors. The decision to adopt a product or a corporate-image communication approach can also be challenging.

-Sponsorship evaluation is optimized when the focus and the scope of the activation message both aim at fostering the commercial interest of the sponsor, or when they both put the commercial interest of the sponsor in the background.

-Sponsorship activations should emphasize the brand as a sponsor of the event to promote products but the event as being sponsored by the brand to enhance corporate image.

 

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Sustainable Selections: How Socially Responsible Companies are Turning a Profit

• Posted: November 9, 2015

A recent Nielsen global survey, “The Sustainability Imperative-New Insights on Consumer Expectations,” found that consumers are increasingly willing to pay a premium for socially responsible products.  This survey found that 66% of respondents are willing to pay more for products and services from companies that have demonstrated their commitment to positive social and environmental impact.  This percentage has increased from 55% in 2014 and 50% in 2013, according to Nielsen’s newswire about this survey.

According to this report, there are key sustainability purchasing drivers for global respondents.  Survey respondents were “very heavily” or “heavily” influenced by the following factors:

62% The products are made by a brand/company that I trust.

59% The product is known for its health and wellness benefits.

57% The product is made from fresh, natural and/or organic ingredients.

45% The product is from a company known for being environmentally friendly.

43% The product is from a company known for its commitment to social value.

 According to Carol Gstalder, Senior Vice President, Reputation and Public Relations Solutions at Nielsen, “Brand trust and reputation are paramount.” She also stated, “An excellent reputation makes it far more likely a company will be welcomed into new communities; partner with the most respected non-profits working on issues consumers care about most; and be a go-to source for products and services. And what we know for sure is that sustainability is playing an increasingly significant role in consumer decision making.”

The report also discusses the sustainability tactics used by brands in a variety of product categories.  Nielsen’s newswire provides a link to the “Global Corporate Sustainability Report.”

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Managing Brands in a Prickly Digital World

• Posted: November 2, 2015

Companies that ignore or do not respond quickly and effectively to negative social media may find that the perceptions of their brands, and their corporate revenues, profits and stock prices are impacted.  Donald E. Sexton, Columbia Business School, writing in the September 2015 issue of the Journal of Advertising Research recommends an action plan for brand managers to respond to social media criticism.

Social media has had a great impact on the ability of customers to share negative experiences with a company or dissatisfaction with a brand.  Customers can share these experiences via social media very quickly with a large number of consumers.  Sexton discusses the high rates of non-response by companies to negative stories or complaints by customers.  He points out that negative posts which are not addressed quickly and effectively can result in decreases in the brand’s perceived value, which will have a negative impact on sales, revenue, and the stock’s price.

Sexton’s suggests the following action plan for brand managers faced with social media complaints:

-Monitor the quantity and content of comments on social media regarding products and services in real time.

-Ensure that complaints on social media are dealt with quickly and effectively.

-Understand the drivers of the monetary perceived value of the brand’s products and services.

-Know the financial outcomes of actions before taking them.

Sexton concludes that companies must monitor and respond to social media complaints to avoid negative impact on their brands.  He also advises that customers should be considered members of the marketing team.

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