Friday, August 2, 2013 | Edited by Daniel Moores
||Need For Integration Magnified When Reaching Affluents
Purse strings and wallet depth are not the only things that separate the wealthy from the rest of the population -- their media consumption does, as well.
A survey conducted by AdAge two years ago claimed that approximately 90% of affluent Americans (defined as those with a household income of at least $100,000) still consumed their news through printed magazines or newspapers.
This surprised both members of the media and the general public. With many print publishers either folding or converting to solely digital since 2011, in addition to the vast adoption of mobile technology, one would assume that this number has at least slightly changed. However, what brands should really pay attention to is the unbiased way the affluent consume their news, regardless of the channel.
Don't Discount Traditional Media
We've already discerned that the rich don't take issue with picking up a newspaper or magazine (or having it delivered to their front door). Twenty-four percent of Affluents read at least one of the national daily newspapers (The Wall Street Journal, The New York Times, The Washington Post, etc.) every day, according to a 2012 survey conducted by Ipsos MediaCT Mendelsohn.
They also listen to more radio than the general population -- an average of 10.6 hours per week -- while watching television just under 17 hours per week.
The Wealthy Use Online More
One would assume that the extra exposure to traditional media would mean lower Affluent use of digital and social; however, this is not the case. As a matter of fact, according to an infographic distributed by Column Five Media, wealthier Americans use the Internet 19% more often than the general population. In addition, a LinkedIn study highlighted by Business Insider discovered that about 90% of affluent consumers use social media, with 44% using it to engage with financial institutions specifically.
Affluents also show slightly greater product awareness after being exposed to a digital ad than the general public (51% vs. 47%). Meanwhile, according to a May 2013 article by Examiner.com, more than half own smartphones and nearly twice as many as last year downloaded magazine apps (4.7 million) and newspaper apps (seven million).
What Does It All Mean?
The increased multichannel consumption by wealthy individuals reiterates the importance of an integrated marketing approach. Brands, specifically in the growing luxury space, have numerous touch points to consider when executing a campaign due to what seems to be the sporadic and multi-channel nature of Affluents. Retailers may want to rethink a strategy that neglects print media or radio. On the contrary, some luxury brands have still been slow to adopt emerging technology, such as mobile, although it appears that others are finally making the jump.
Our company found that 85% of luxury brand marketers plan to increase digital marketing spend in 2013. Yet, regardless of whether a brand needs to adopt either more digital or traditional tactics, the point is that integration remains key. The concept is just magnified when targeting the affluent.
Editor's note: The Time Spent Listening (TSL) data in this article is from the Mendelsohn people's survey of a select group of consumers and isn't an apples to apples comparison with a media rating source such as Arbitron or RADAR that shows higher TSL.
(Source: Frank Riolo, Media Post's Engage: Affluents, 07/24/13)
||How the Digital Age Has Reshaped the Ad Game
Madison Avenue is Quickly Morphing into Digital Drive
Technological advances have changed everything from where consumers watch TV to how they buy holiday gifts. In turn, ad agencies have revamped their hiring practices, commercial buying models and even their mind-sets on whether other firms in their field should be considered friends, rivals or a mixture of the two.
Sunday's news of a merger between Omnicom Group and Publicis Groupe was a prime example of how traditional ad firms are evolving to better compete in this increasingly digital landscape. The two holding companies announced a merger to form the world's largest ad company, called Publicis Omnicom Group.
That combination will "benefit our clients by bringing together the most comprehensive offering of analog and digital services," Publicis CEO Maurice Levy said in a statement. He and Omnicom CEO John Wren will be co-CEOs of the merged company.
That's a grand example of how the ad industry is changing. But there are countless others. For instance:
"The digitization of the world has had a tremendous impact on advertising strategy, the advertising business and relationships in advertising," says Steve Farella, a 30-year ad industry veteran who is now CEO of media company holding group Maxxcom Global Media.
- Consumers are willingly leaving digital trails of their consumption habits and agencies will risk losing clients if they're unable to tailor campaigns that reflect targeted demographics.
- "Creative types" typically need to back up their super buzzy Super Bowl commercial ideas with a digital or social-media plan that will have measurable results.
- Those who buy ads on digital platforms no longer need to be adept at verbal wheeling and dealing -- instead, they need to know how to use automated trading systems that simply take the highest bid.
In the 1950s and 1960s, "you needed to be a creative person" to make it in this business, he says. And while creativity is still incredibly important, he adds that "today, you need to be a technology person."
Rarely do marketers run a campaign that only uses TV, radio or print. They now want integrated multimedia efforts that can include buying strategic search terms or creating a wider Internet-based marketing effort.
As clients demand more measurable and sophisticated campaigns, ad agencies are doing all they can to oblige.
That means hiring engineers who can create a logical yet eye-appealing "user experience" for a client's Web page.
It also means ramping up on digital investments -- cited by Publicis Omnicom as a primary motive for their marriage.
"Instead of spending twice as much money (on future digital investments), we can maybe spend 100% or 125% of what we'd be spending and get the greatest and best thing on the planet," says Wren, referring to digital ads.
As an example, Wren pointed to Omnicom's trading desks — where digital ads are bought and sold quickly on exchanges -- as examples of its digital expansion and vowed to push their investment in technology.
"We can offer it to as many markets as appropriate," says Wren, who will be co-CEO of the merged firm.
The combined companies will now have more data analysts working together to process information and pull out learning points, says Wren. "The real value is how many analysts we have that can process and turn data and into meaningful analysis," he says.
Driven by shared services and products and cost-cutting, the combined company will likely save about $500 million, estimates Patrick Kirby, an analyst at Deutsche Bank.
The digital revolution for the ad industry also means making friends with a company that could also be considered a competitor.
WPP Group CEO Martin Sorrell once labeled Google as a "frenemy," and the U.K.-based firm's spending on Google rose 20% last year to hit $2 billion.
Mirroring the tactics and strategies of Google, Facebook and other tech companies, ad agencies want to work hand-in-hand with their clients to deliver similar types of services that come from mining their own data and delivering ads in the media outlets that can deliver the best bang for their buck.
GROWING DIGITAL ADS
The ad industry changes come as these firms try to grab their share of burgeoning expenditures in the digital media space.
Internet advertising is expected to increase by an average of 15% a year between 2012 and 2015, according to the latest advertising expenditure forecast from ZenithOptimedia.
Mobile is the fastest-growing segment of Internet advertising, with a 67% growth anticipated this year. Facebook last week impressed Wall Street with its strong performance attracting mobile ads.
In comparison, the global advertising market as a whole is estimated to grow 3.5% to $505 billion this year.
While there are business advantages to the digital explosion, it also makes for "a confusing landscape," says Clark Fredricksen, a vice president at research company eMarketer.
"Marketers face a very complex array of ad technologies, middlemen, acronyms that all represent roadblocks for them in talking to consumers. You're going to buy a mix of media -- TV, mobile or what have you," he says. "In order to do that well in targeted fashion, it's very difficult. It just requires a lot of work."
The Omnicom-Publicis deal only underscores the industry players' attempt to get a handle on and beat competitors in tackling the complexities.
"The new group will, with WPP (previously the largest ad holding company in the world), dominate the industry and will have the means to set the norms -- something the market badly needs," wrote Charles Bedouelle, an analyst at Exane BNP Paribas, in a report.
But at least one competitor says joining forces won't make the firms more digitally powerful or technologically savvy.
"The industry's obsession with mergers and acquisitions still amazes me, particularly in a world where digital and technology have made scale irrelevant," says David Jones, global chief executive officer at ad firm Havas, noting that Instagram has just 32 employees yet has 140 million users.
He also points out that it's the technology that matters, not a vast amount of people or resources behind that technology.
"Clients today want us to be faster, more agile, more nimble and more entrepreneurial not bigger and more bureaucratic and more complex," he said in that e-mailed statement. "I doubt you'll find a single client who said, 'We wish you were bigger and we were less important to you.' "
Larger ad agencies' efforts to compete with the likes of Google, Facebook and Salesforce in emerging advertising technologies and data mining could be an exercise in futility, says Bob Vallee, CEO of Project: WorldWide, a network of ad agencies.
"That the combination (of Omnicom and Publicis) is going to place them in the center of the revolution is a little far-fetched," he says. "Advances in ad technologies by companies like Google and Salesforce will accelerate much faster than (Omnicom-Publicis)."
Ad agencies' competitive strength will continue to be creative ideas and content message, he says.
"The content that's placed has to be extremely creative," Vallee says. "It doesn't matter how good their digital chops are. We're going to get beat by Google and Salesforce (in technology). Where and how it's placed is important, but tech companies will control more of that. Let's work with tech companies and decide how to get it to the people. We should focus on ideas, the intent."
(Source: Rebecca Castagna, USA Today, 07/29/13)
||Vine and the Six-Second Video Ad
Twitter's Video Sharing Service, Vine, is Drawing Marketers Looking for an Ad Format That's Catchier Than an Image but Pithier Than a 30-Second Video
As the number of advertising platforms continues to grow, the attention span of consumers continues to shrink. To keep up, marketers have moved from billboards to online pop-ups to YouTube video messages, experimenting with formats to find the right medium for ad content that holds consumers' attention. Brands have begun asking, "What's catchier than an image but pithier than a 30-second video?"
A possible answer lies in Twitter's newest investment, Vine. Launched in October 2012 and bought by the social media giant this past January, Vine initially set out to be a mini-video sharing application for everyday users. But it has gained major popularity among advertisers for content marketing and brand promotion, having garnered a total of 13 million users across the globe.
The app lets you shoot up to six seconds of looping video footage using a smartphone that can be cut up into a handful of short clips, or two to three larger chunks -- just touch the screen to record, and lift your finger to stop. These videos can then be uploaded either directly onto Vine, or onto Twitter as a link, where your followers will be able to see them as expandable links. Some brands have understood the value of departing from the obtrusive 30-second video ad spot, and have condensed their content to suit a more time-sensitive consumer base, giving customers the choice to opt in to watch their ads. Michael Litman, a co-founder of BRANDS ON VINE -- a website that monitors more than 50,000 brands on the platform -- describes Vine ads as "brand blips"; he considers them a strong medium for content marketing because they "(don't) need to be 'watched' to be seen -- there's no decision-making process by the user."
Publishing house Simon & Schuster -- which didn't have much of a presence in the video ad domain -- took to Vine to give its customers a six-second slideshow of books they could be reading. Burberry spliced together six seconds worth of backstage footage and highlights from a 15-minute fashion show. And Bacardi U.K. produced a series of six-second cocktail-mixing lessons for the platform.
Vines like these are tweeted on the company's official Twitter page and are then often re-tweeted by fans and followers, creating a snowballing effect. Michael Lebowtiz -- CEO and Founder of digital ad agency Big Spaceship -- calls this the "propagation value" of the app, and says it's a major reason brands adopt Vine. Case in point: Toyota Spain. A couple of months ago, the Spanish division of the giant automaker released a simple stop-motion video of a paper-cut-out car driving off a tablet and up its user's sleeve. The post became widely popular among the brand's 80,000-customer strong social media community.
Lebowitz acknowledges that not everything will be a blockbuster. "With so much social content, you can't expect everything to get noticed," he says. But while social media's short lifespan may seem like a strike against Vine marketing, it's actually a selling point for brands that see the platform as a safe and cheap space to exercise creative freedom and test new ideas. "Video is another opportunity for brands to define their own social behaviors," says Lebowitz. Rebeca Guillen, a social media manager at Toyota Spain, agrees, noting that the platform provides a "perfect opportunity to test (marketing) speed and agility" and generate original content. Brands like ASOS and Nintendo of America, for example, have published rather simple videos that essentially show staff unboxing their products in order to bridge the gap between online shopping and in-store shopping -- both brands aiming to exhibit how gratifying it can be to open a box.
A major reason why brands have gravitated toward the mini-video platform is because of the community it has generated around itself. Kevin Sigliano, a partner at Spain's leading social media marketing firm, Territorio Creativo, calls it an "ecosystem where brands and consumers talk directly." Brands have taken things a step further by hiring individual Vine-artists -- as opposed to big ad agencies -- to work with them on their six-second marketing content. Khoa Phan, a 23-year-old Vine artist, has worked with MTV, the (RED) campaign, Livestrong, and most recently Snapple. Specializing in stop-motion Vines, Phan describes the mini-video as having the ability to "pack (in) a lot of visual information," doing a lot with a little.
Artists from other fields, like English singer-songwriter Ellie Goulding, further demonstrated the strength of this mini-video community when she enlisted fans to upload Twitter Vines inspired by her newest record "Burn" under the #ellieburnvine hashtag. The best of these fan-made Vines were compiled into a long-form collage uploaded on Youtube, making the marketing and art-making process collaborative.
In this way, Vine ad content is gradually helping consumers back into the marketing equation, making the ad experience what it should be -- quick and easy. The platform probably won't be the last of its kind, but it is, for now, teaching marketers the value of crisp and unobtrusive content.
(Source: Varun Nayar, CNN Money, 07/29/13)
What's In It For You
This move to shorter videos online is a testament to the value of shorter commercials on radio. Share this article with 60-second advertisers you believe can benefit from :10s, :15s, and :30s.
Daily Sales Tip: He’s the Worst Radio Rep in the Market
That's what one of Terry Dean's clients said about him. The important part is what followed: "Because he doesn't sell radio at all. He sells marketing solutions."
Terry helps his clients market their businesses. And he does a great job of marketing himself as well. You have to take a look at his personal website: http://www.deanofportlandradio.com/index.html. Make sure you invest a couple minutes to watch the video of testimonials.
Are you a creative solutions provider to your clients? Is that your personal brand? How are you marketing yourself to clients and prospects?
Sell solutions, not spots. Write down your goal of making that your brand and review all accounts on your list to determine what creative solutions you could bring to them that will set you apart from other reps.
Once you have created your brand as a solutions provider, market yourself. Develop a blog using a site like WordPress (www.wordpress.com) to post marketing articles and ideas. Create your personal website. WordPress has a webpage tool as well or use a site like GoDaddy (www.godaddy.com). Record a video of your client testimonials and post it on YouTube (www.youtube.com).
Build out your LinkedIn page (www.linkedin.com) to include all of LinkedIn's features like Honors and Awards, Organizations, and Activities. Join LinkedIn marketing groups. Use Facebook and Twitter to post marketing articles and link to your testimonial video.
Learn more from Terry first-hand at the Radio Show in Orlando September 18-20, where he will be sharing his tips for success on a panel of star local, direct sellers. Register at www.radioshowweb.com.
Source: John Potter, SVP/Professional Development, RAB