future state

What 80 Years of Study Means for the Future of Advertising Research? via the Journal of Advertising Research, by Dr. Horst Stipp of the ARF

  • Posted: September 26, 2016

The ARF was founded in 1936 with a mission to improve the practice of advertising, marketing, and media research in pursuit of more effective marketing and advertising communications.

True to that mission, during its 80th year in 2016, the ARF launched a major new initiative, “How Advertising Works.” The goal was to deliver objective research-based insights that improve advertising and, ultimately, the return on marketing investments (ROI), with actionable insights for marketers in today’s media, consumer, and advertising environments. The study, which is ongoing, is focused on how advertising works today.

But it also provides valuable lessons about the history of advertising research and a glimpse into the future of such research.

The most important conclusion: three factors have been driving advertising research over the past 80 years. They are still the main drivers today and, we believe, will drive advertising research in the future:

  • The emergence of new advertising platforms
  • Changes related to the consumer
  • Methodology and data source innovation

Access full “How Advertising Works” article
(by logging in to MyARF)

The Personal-Data Tsunami & the Future of Marketing – Shawn O’Neal the JAR

  • Posted: July 8, 2016

The following article is from the latest issue of the Journal of Advertising Research (JAR).

“The fundamentals that make economies of scale work are deteriorating before our eyes. Abundant computing power, the free flow of information on the Internet, and the ability to harness data—forces breaking down conventional beliefs—make for a virtual socioeconomic tsunami that is tearing apart the way business runs and how competitive advantage is won and lost.

An ecosystem of information, communication, and methods driven by constantly evolving technology is upending 200 years of truisms. This observation implies the need for a new business model with four basic tenets:

  • Network effects trump size.
  • Fixed costs and asset scale are obesity to progress
  • Technological advancement comes from the outside, not the inside.
  • The ability to target and market to specific people heightens the opportunity to reach a brand’s relevant audience.”

 

To access JAR articles, please follow these 3 steps:

  • Login to your myARF
  • Click on “Journal of Advertising Research” on the left hand side menu
  • Locate the article in the search field on the page

 

 

Trends for 2016: Six Predictions for What Will Happen

  • Posted: December 21, 2015

eMarketer provides predictions for digital advancements in 2016, which include the impact of mobile, from messaging apps to mobile commerce.

eMarketer’s Six Predictions for 2016:

-The Voice of the Consumer Will Be Heard.

Consumers are using their smartphones to make business calls.  As a result, marketers must be prepared to optimize digital content for speech-based queries and must ensure that content can be located by digital personal assistants.

-Marketers Will Join the Conversation (in Messaging Apps).

Facebook will add more services and marketing opportunities for brands in both Messenger and WhatsApp.

-Mobile Payments Will Take Off.

Mobile wallets will become a standard feature on smartphones and increasing numbers of retail stores will accept proximity payments.

-Mobile Commerce Will Move Down the Funnel.

Mobile commerce will represent a larger portion of retail sales as consumers transition from mobile shopping to mobile buying.

-Millennials and Centennials Will Be OK With Releasing Even More Data.

Consumers, especially younger ones, will be willing to give up more of their personal data to marketers and publishers in return for the convenience and value of the connected world.

-Facebook Will Become Nearly Entirely Mobile.

In Q3 2015, 78% of Facebook’s $4.3 billion in worldwide ad revenue came from mobile.

During the same period, 727 million of Facebook’s 1.55 billion MAUs were mobile-only, equivalent to 47% of users.

See all 5 Cups articles.

 

 

Q&A with ESPN’s Artie Bulgrin: Research Has to Be Future Forward

  • Posted: November 30, 2015

In this Q&A with Artie Bulgrin, Senior Vice President Global Research and Analytics, ESPN, Charlene Weisler, writing for Media Village, discussed the concept, “Research Has to Be Future Forward.”  The issues covered during this interview included the impact of data on the role of research, ESPN’s involvement in programmatic TV efforts, cross-platform viewing trends, the development of industry standards for cross-platform measurement, as well as the future of research.

On the question of whether an industry solution for standard cross-platform measurement will be developed, Bulgrin replied:

“We are getting closer, but the industry needs to do more work on education and gaining consensus for standardization. We have more companies than ever pursuing cross-platform measurement including comScore, Nielsen, Symphony Advance Media and Reality Mine, to mention a few. I am hoping this competition will lead to innovation and speed to market. But there are different definitions of cross-platform measurement out there and I’m not sure which will be supported by the industry. . .”

In response to Weisler’s question, “What do you see as the future of research?” Bulgrin replied:

“Research will become even more vital for revealing strategic insights and understanding human behavior in a future where the flow of data never stops. Researchers must become multidimensional in their skills to include technology, science and analytics. This was the main reason we created the ESPN Lab in Austin — to bring advanced science and methods to the study of media and advertising; an approach that gives us deeper insights on how people are interacting with media and advertising right now in order to be better prepared for the future.”

See all 5 Cups articles.

 

Mobile to Overtake Newspapers

  • Posted: September 28, 2015

According to the latest Advertising Expenditure Forecasts from ZenithOptimedia, in 2016 mobile internet advertising will become the world’s third-largest advertising medium, behind television and desktop internet and ahead of newspapers.

The media agency’s forecasts show that next year mobile will account for 12.4% of global adspend while newspapers will take 11.9%. In terms of actual value, mobile advertising will grow 38% in 2016 to US$71bn, while newspaper advertising will shrink 4% to US$68bn.

Mobile advertising is the driving force behind the growth of the entire advertising market, ZenithOptimedia stated, as it will contribute 83% of all new ad dollars between 2014 and 2017. And as mobile continues its inexorable rise, so print continues to decline across most of the world. ZenithOptimedia predicts that newspaper adspend will shrink by an average of 4.9% a year through to 2017, while magazine advertising will shrink by 3.2% a year. Their combined share of global adspend will fall from 19.6% this year to 16.7% by 2017.

In that year, internet advertising is expected to account for 34% of global adspend, slightly behind television’s 35.9% and is likely to gain the top spot in 2018 on current trends. Total adspend is forecast to grow 4% this year to reach US$554bn before accelerating to 5% in 2016, thanks to the four-yearly boost supplied by the summer Olympics and US presidential election.

See all 5 Cups articles.

 

Benchmarks for Sales Performance

  • Posted: January 20, 2015

A paper in the Journal of Advertising Research proposes sales and advertising build benchmarks which can be used to estimate long-term performance. The author notes that these methods are not meant to replace comprehensive marketing mix modeling, but they can serve as simpler, faster way of gauging whether a product is on-track to meet its full-year target. Read more »

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