News You Can Use

Market Leaders Can Succeed As Challengers and Brand Innovators

• Posted: June 1, 2015

McKinsey & Company presents a blueprint for a market incumbent to innovate and act as the challenger in an entirely new market.

The authors, Jean-Baptiste Coumau, Victor Fabius, and Thomas Meyer, discuss brand-driven innovation.  By capitalizing on the unique links between its current brand and customers, an incumbent company can pursue innovation in an entirely new market.  Benefits of this strategy include the achievement of sales and growth targets, sharpening a brand’s positioning, and creating a halo effect for the original brand.

Examples offered include:

-Apple’s introduction of the iPhone.

-Disney’s launch of a children’s English-language teaching business in China.

-Virgin’s challenger business in retail banking and insurance in the UK.

-BMW’s joint venture with DriveNow to enter the car-sharing business.

Three advantages that brand extensions can use to be successful:

-Distinctive brand equity and trust.

-Strong relationships with customers.

-Access to data, capabilities, and other institutional assets.

The authors conclude that strong brands can successfully enter entirely new markets.

 

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Programmatic Advertising-Benefits and Challenges

• Posted: June 1, 2015

Jack Loechner, writing for Research Brief from The Center For Media Research, discusses a study by Econsultancy and Quantcast on programmatic advertising campaigns.

-Marketers expect to increase their programmatic ad spend by an average of 37% by 2017.

-40% of programmatic spending goes towards branding campaigns.

-41% of  companies surveyed are doing all of their programmatic advertising in-house.

Benefits include:

-64% of respondents to the study feel that efficiency is increased.

-58% have been able to reduce advertising costs.

-56% have gained the ability to optimize marketing in real time.

However, reservations do exist:

-Marketers are concerned over the control ceded in programmatic advertising.

-57% of marketers agree that there is an employee skills gap.

-23% of respondents are concerned about data privacy issues.

-16% are concerned about the lack of transparency.

Additionally, the report finds that 62% of marketers are running programmatic ad campaigns with branding rather than direct response objectives.  The report provides additional information on the benefits and challenges related to programmatic advertising spending, measurement, and its potential.

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2015 WPP 100 Most Valuable Global Brands

• Posted: June 1, 2015

Dr. Paul Marsden, writing for Digital Intelligence Today, discusses the 2015  WPP 100 Most Valuable Global Brands Report.

According to this report, the top 100 brands are worth $3.3 trillion.  WPP calculates brand value by combining financial value with brand contribution.

The article emphasizes that “a brand is more than a logo, it is a set of associations that can influence propensity to choose and frequency of choice.”  Among the characteristics which drive brand value are salience, difference, and meaningfulness.

The top most valuable global brands on this list include:

1. Apple
2. Google
3. Microsoft
4. IBM
5. Visa

The article also provides a link to the full WPP report.

 

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New Business Pitches-Success or Failure?

• Posted: June 1, 2015

In an iMediaConnection article, Kevin Ryan, CEO of Motivity Marketing, discusses the 10 ways an advertising agency can lose a new business pitch.

Ryan advises advertising and marketing agencies to avoid the following actions when pitching a new client:

-Ignoring the details of the RFP.

-Promising to meet unrealistic key performance indicators and unachievable objectives.

-Providing extensive spec work before signing a contract.

-Reading the slides and ignoring the managers and employees attending the presentation.

-Failing to learn about the client’s business category and the potential clients attending the pitch.

-Assuming you know the business.

-Speaking down to the pitch attendees.

-Engaging in an overzealous approach.

-Taking powerful anti-anxiety medications.

-Failing to practice the pitch.

Ryan feels that a new business pitch combines art and science.  It is not simply a sales presentation.

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English Proficiency Rises Among Hispanics

• Posted: May 21, 2015

Cheryl Russell analyzes the Pew Research Center’s Hispanic Trends study, “English Proficiency on the Rise Among Latinos.”

According to the Pew study, although most Hispanics in the U.S. speak Spanish at home, a growing number, currently 33.2 million, speak English proficiently. Pew analyzed 2013 Census Bureau data, which revealed that 68% of all Hispanics ages 5+ are proficient in English vs. 59% in 2000.

During the same 13-year time frame, the share of Hispanics who speak Spanish at home has been declining. As of 2013, 73% of Latinos ages 5+ were speaking Spanish at home, down from 78% in 2000. However, a record number of Hispanics speak Spanish at home, 35.8 million, as the nation’s Hispanic population has grown.

The study also provides details of how “speaking English proficiently” is measured.

The results of the study have implications for the languages and messages developed by marketers in their campaigns to American Hispanics.

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Gen Z-The Next Target of Marketers

• Posted: May 21, 2015

Gen Z, the generation of teens following Millennials are the next target of marketers, according to Ashley Rodriguez, writing for Advertising Age.

Members of Gen Z have their own unique set of characteristics:

-Practical and value conscious.

-Seek best quality at the right price.

-Value experiences.

-Risk takers who thrive on discovering something new and different.

-Creative and entrepreneurial.

-Want to be unique and not blend in.

-Consider technology as a given since they were raised with it.

-Utilize the vast amount of available information.

-They’re loyal once they find a brand, product or service that they like.

-Have great potential as brand ambassadors.

-Use social media to instantly share both good and bad experiences with a brand.

-Focus on a rental, rather than ownership model, such as cars and formal dresses.

-Drawn to nostalgia.

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Tactics and Challenges of Visual Marketing

• Posted: May 21, 2015

Ayaz Nanji, writing for MarketingProfs, presents the results of a visual marketing survey of 204 marketers by Digiday and Chute.

-Professional photography is the best performing visual content type. 59.2% of survey respondents reported that professional photography is one of the visual asset types that performs best on desktops while 55% say professional photography is one of the visual asset types that performs best on mobile.

-Original graphic design/illustration ranks as the second best visual asset type for both desktops and mobile devices.

-User generated content, both images and videos, ranked third on this survey.

This survey found that 72% of marketers surveyed believe that visual marketing is more effective than text, and on average, visual marketing performed 4.4 times better than text.

Despite the knowledge gained from this survey, challenges face marketers:

-Lack of time and staff resources to create a constant stream of visual content.

-49% of marketers surveyed report spending at least 25% of their time on visual marketing.

-The content expectations have expanded to include videos, Instagram photos, Pinterest-optimized photos, SnapChatting with the brand community, and developing YouTube series.

-Difficulty maintaining timeliness and relevance of the visual.

-Complications related to obtaining approvals and the governance processes.

-Overuse of stock photography.

Addressing the above challenges and streamlining the visual marketing process will become increasingly important for marketers and advertising agencies.

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Cross-Platform Measurement Criteria

• Posted: May 21, 2015

The Coalition for Innovative Media Measurement (CIMM) has developed seven criteria to measure cross-platform exposure of both content and ads, according to Jane Clarke, CEO and Managing Director of the organization.

Charlene Weisler, writing for Media Village, discusses these criteria:

-Go beyond panels, which are too limited in size and unable to account for out-of-home viewing.

-Shift to passive measurement and solutions, such as passive electronic measurement.

-Include Census data across all platforms.

-Measurement of individuals would be optimal, but measurement of households is also useful.

-Measure ads and programming separately.

-Develop common units of analytics and metrics for reporting.

-Implement an asset identification open standard.

Weisler concludes that the pace of cross-platform measurement solutions should accelerate with the CIMM criteria in place.

 

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What Influences Consumer Purchase Decision? WOM and Paid TV

• Posted: May 21, 2015

Jack Loechner, writing for the Research Brief from The Center for Media Research, discusses Deloitte’s 2015 Digital Democracy Survey, which highlights the influencers of U.S. consumer purchases:

-More than 80% of Americans aged 14+ report that recommendations from friends, family or known acquaintances have a medium or high influence on their purchase decisions.

-Among paid media, television ads still command the broadest influence, according to 65% of respondents.

-Other paid media influencing purchase decisions include: in-theater ads, magazine ads, and newspaper ads.

-Unpaid influencers include: online reviews/recommendations from social media friends and online reviews.

-An endorsement from an online personality is approximately as influential as an endorsement from a celebrity.

 

Understanding the paid and unpaid media influencers of consumer purchase decisions is vital for marketers.

 

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The Potential of Silent Videos

• Posted: May 18, 2015

Sean Miller, writing for ClickZ, discusses constraints and opportunities relating to muted autoplaying video ads.

Consumer desire to control the content to which they are exposed, has resulted in marketers introducing video ads that require viewers to click or tap for sound.

Introduction of these muted autoplaying video ads requires compelling visuals to encourage user interaction with the video. Facebook, Twitter, Yahoo, and Instagram have established a high measurement standard: if a user scrolls past the video within the first three seconds it does not count as a video view.

Among the suggestions to encourage consumers to opt-in to the sound components of video ads:

-Express the visual essence of the brand idea.

-Use visual humor.

-Keep the three-second rule in mind.

Encouraging consumers to activate the sound of the video, and rewarding them for sticking around to watch and listen to the video will result in higher brand engagement.

 

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