tag:econsultancy.com,2008:/topics/performance-marketing Latest Performance marketing content from Econsultancy 2016-08-25T11:52:00+01:00 tag:econsultancy.com,2008:BlogPost/68227 2016-08-25T11:52:00+01:00 2016-08-25T11:52:00+01:00 What is the Financial Times' approach to programmatic advertising? David Moth <p>Sacha Bunatyan, global B2C marketing director at the Financial Times, is among the expert speakers who will be in attendance.</p> <p>Ahead of Get With The Programmatic, we spoke to Sacha to get her views on how the FT uses programmatic and how the technology has impacted the marketing industry. </p> <p>You can watch her answers in full in this video, and I’ve also summarised them below.</p> <p><iframe src="https://www.youtube.com/embed/UEZ89uB1bLs?list=PL1-kPkZBw50FexVdl4i94-lQdSVnsN7A1&amp;wmode=transparent" width="640" height="360"></iframe></p> <h3>How has the FT used programmatic to promote the brand and sell subscriptions?</h3> <p>According to Sacha, programmatic advertising is hugely important to The FT, as demonstrated by the fact that it recently appointed Elli Papadaki as head of programmatic sales.</p> <p>Furthermore, The FT’s chief data officer sits on the board of directors and the company employs more than 30 <a href="https://econsultancy.com/blog/67203-data-analysts-vs-data-scientists-what-s-the-difference/">data scientists and analysts</a>.</p> <p>To ensure this analytical talent is not wasted, the subscriptions and ad sales teams work closely together using “one set of data, one set of segmentation.”</p> <p>At Get With The Programmatic, Sacha will be able to discuss a programmatic campaign that resulted in a 300% uplift in subscriptions versus the average week. </p> <h3>What do you think makes for an effective programmatic campaign?</h3> <p>Sacha said that effective campaigns require the right balance of a strong message combined with effective use of media.</p> <p>The data and insights that come out of each campaign should then be evaluated to aid ongoing optimisation and improve decision-making.</p> <h3>How do you think agencies should be responding to brands bringing programmatic in-house?</h3> <p>The thorny question of how agencies fit into the programmatic landscape is one that <a href="https://econsultancy.com/blog/66639-the-boom-of-the-programmatic-gong/">we’ve discussed a lot in the past</a>.</p> <p>Sacha said there is “no one-size-fits-all approach”, and the trend at the moment is for businesses to take greater control of their data in order to better understand their audiences.</p> <p>At the same time Sacha describes the agency role as “multifaceted”, with the core expertise being in connecting brands with the right media.</p> <p>In future she predicts that we’ll see a hybrid solution where brands will invest more in core competencies and link up with agencies for key partnerships around specific projects or campaigns.</p> <p>For The FT, a good agency partner is one that can offer a custom, tailor-made approach.</p> <p><em><strong>To learn more about the FT’s approach to automated media buying, come to <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With The Programmatic</a> in London on September 21st.</strong></em></p> tag:econsultancy.com,2008:BlogPost/68198 2016-08-17T10:06:00+01:00 2016-08-17T10:06:00+01:00 How ‘people-based marketing’ is redefining effectiveness in programmatic ad buying Maeve Hosea <h3>How is programmatic allowing you to move forward with your advertising strategy?</h3> <p>Crucially, programmatic enables us to have more transparency.</p> <p>Historically, we didn’t get a lot of information out of the media buys we were doing through large media agencies.</p> <p>We weren’t aware of where the inventory was being served and therefore unable to learn about where customers were and what type of messaging and content they were interacting with.</p> <p>We were paying lots of money but not taking the learnings away from it in terms of how to optimise – spending hundreds of thousands but none the wiser.</p> <p>The advantage of programmatic is that you are making that investment, you are seeing media buys that are working, how that changes over the course of a year, how it is affected by seasonality and so forth.</p> <p>That is then valuable knowledge that the business retains.</p> <h3>What do you think are the most exciting programmatic developments across media?</h3> <p>The line Facebook is currently touting about people-based marketing is something that I am passionate about.</p> <p>The programmatic solution in Facebook today means you can upload lists and very specifically target people.</p> <p><em>MBNA has been buying Facebook ads programmatically</em></p> <p><img src="https://assets.econsultancy.com/images/0007/8109/MBNA_programmatic_ad.jpeg" alt="" width="715" height="449"> </p> <p>So it seems it is only a matter of time before we see the next evolution of programmatic display, TV buying and whatever else programmatic evolves into.</p> <p>Programmatic will increasingly become about audiences rather than cookies and pixels.</p> <h3>What can you say about fraud and the challenge that poses?</h3> <p>Fraud as an issue is ever-evolving. We have to watch that just as we have to watch ad blocking and anything else that fundamentally changes the area we are operating in.</p> <p>Our way of dealing with it has been to change our success metric. We have been working on changing the KPI to look at incrementality as a way to help mitigate risk from fraud.</p> <p>We are now using our non-viewed display conversions – of which we have a lot, like everybody else – to get our baseline conversion rate.</p> <p>Success is the incremental between the impressions we serve that don’t get viewed and the impressions that do get viewed.</p> <p>That shows us the true performance of our display advertising.</p> <h3>Where do value, creativity and effectiveness meet?</h3> <p>For us it is about [defining the right audience segments for a campaign] but it is also about tailoring the message to what we know about people.</p> <p>My approach, with our provider Infectious Media, is to think about different treatments where advertising is more likely to resonate with people, based on information that I can acquire from across social or various third parties.</p> <p>Programmatic is a strange field in that it increasingly requires numbers people but ultimately the output for all those numbers and analysis – the segmentation that you are running – is still creative and requires creative people.</p> <p>We do some of that work in-house but we also reach out to specialist agencies to push the boundaries of creative thinking.</p> <h3>Which media channels are next for programmatic and why?</h3> <p>The obvious one is TV. The guys at Sky are kind of there with AdSmart but it is a little on the expensive side.</p> <p>You would think that the players will bring that element to the table soon enough and we are going to be able to buy TV advertising programmatically.</p> <p>That is the challenge for the industry: helping people feel a bit better about marketing by delivering marketing that is more aligned to their wants, needs and interests.</p> <h3>What are the pressing issues in the programmatic sphere moving forward?</h3> <p>Cross-device marketing is crucial. There are lots of people trying to do deterministic measurement models within display advertising [where a consumer is identified by linking browsing behaviour with personal login data] and I have a big issue with a way a lot of those are set up.</p> <p>I am not convinced by the accuracy or transparency that sits within that. It is still a bit of a bugbear and I think the industry still has a lot of work to do on solving that cross-device piece.</p> <p>Programmatic needs to evolve by moving away from cookies and pixels and I think the people-based marketing approach has the power to tip the whole industry on its head.</p> <p><em><strong>Back for a third year, Marketing Week and Econsultancy’s <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With the Programmatic</a> conference and workshop will take place in London on 20 and 21 September. </strong></em></p> <p><em><strong>Nic Travis is one of the brand experts sharing insights into how to make the programmatic landscape work for you.</strong></em></p> <p><em>This article was originally <a href="http://www.marketingweek.com/2016/08/16/how-people-based-marketing-is-redefining-effectiveness-in-programmatic-ad-buying/">published on Marketing Week</a>.</em></p> tag:econsultancy.com,2008:BlogPost/68063 2016-07-14T10:15:00+01:00 2016-07-14T10:15:00+01:00 Can we overcome the tension between programmatic and creativity? David Moth <p>Creatives would ask how an artificial intelligence could possibly understand the artistry and emotional levers that underpin a truly great ad campaign?</p> <p>Would programmatic buying have improved the Guinness Surfer or the Cadbury Gorilla?</p> <p><iframe src="https://www.youtube.com/embed/kAOZ14Tjg7A?wmode=transparent" width="560" height="315"></iframe></p> <p>I’m being overly simplistic here, but these sorts of concerns do exist.</p> <p>I’ve heard several agency bods fret about the impact on creative ideas, particularly when it comes to brand advertising.</p> <p>However, I’m confident that we’ve almost reached a tipping point in terms of industry knowledge and understanding around programmatic.</p> <p>It feels as if marketers are finally comfortable enough with the concept of programmatic buying to understand the huge opportunities it provides, rather than simply dwelling on the potential limitations.</p> <p>I recently attended a panel session where <a href="https://econsultancy.com/blog/67599-31-opinions-on-the-future-of-programmatic-advertising/">marketers debated whether programmatic targeting impedes creativity</a>.</p> <p>POKE co-founder Nic Roope felt that too much targeting and personalisation can “erode the feeling of the art.”</p> <blockquote> <p>It’s the usual tension between art and the machine. Take a film and personalise it. Are all personalised results more resonant than the original unedited film?</p> </blockquote> <p>Nic was referring in part to an Axe deodorant commercial called Romeo Reboot, which broke the brand’s target audience into four segments and offered each 25,000 different permutations of the video ad.</p> <p>The interchangeable elements ranged from simple things like the music, up to whether viewers saw a crime story or a sci-fi action scene.</p> <p><iframe src="https://player.vimeo.com/video/131929702?color=fcfbfa&amp;title=0&amp;byline=0&amp;portrait=0" width="640" height="360"></iframe></p> <p>Nic’s thoughts were echoed by Charles Vallance from VCCP, who said that agencies weren’t keen on programmatic as they “like to unite with a single idea, not create 78 versions of something.”</p> <p>From the client point of view, Topman’s Tom Lancaster talked about the “mind-boggling” amount of ad creatives required to implement a programmatic campaign based around five interest personas.</p> <p>But while it might all seem like a lot of hard work, it was noticeable that Tom didn’t suggest that the programmatic campaign had been a wasted effort.</p> <h3>Programmatic does not equal ultra-atomisation</h3> <p>Romeo Reboot is an extreme example of what programmatic can do and the campaign has received a lot of attention from the trade press.</p> <p>But in spite of the fanfare, we’re yet to hear any actual results from the campaign.</p> <p>In my opinion, the Romeo Reboot campaign is something of a red herring in this debate.</p> <p>Nobody really thinks that programmatic buying will require marketers to come up with 100,000 different permutations for each campaign.</p> <p>Instead the focus should be on where programmatic can aid the delivery of contextual, relevant ads, with a few elements personalised to make the creative more effective.</p> <p>For example, the specific product, price or offer might be altered based on factors such as the user’s profile, the time of day, their browsing behaviour or their location.</p> <p>This needn’t have any major impact on the overall tone and idea behind the campaign.</p> <p>In an article <a href="https://econsultancy.com/blog/67835-bringing-data-into-creativity-in-a-programmatic-world/">published on the Econsultancy blog</a>, Affectv CEO Glen Calvert argues that as programmatic has matured, a lot of the processes have been streamlined.</p> <p>As a result, “the ‘plumbing’, or logistics, side of programmatic is becoming less of an obstacle to using data and creative to tell a good brand story.”</p> <p>The situation will only improve as marketers become increasingly familiar with programmatic and aware of its ability to meet the creative requirements necessary to tell their brand story.</p> <h3>The Economist leads the way</h3> <p>Now seems a good point to highlight a creative programmatic case study that produced some really excellent results, just to prove that it can be done.</p> <p>Back in October 2014 <a href="https://econsultancy.com/blog/67447-the-economist-finding-new-readers-with-creative-programmatic-display/">The Economist ran a campaign aimed at driving new subscriptions among liberal ‘young progressives’</a>.</p> <p>It was felt that this demographic saw the publication as one that was only read by the corporate elite.</p> <p>The task for this campaign was to target 650,000 unseen prospects and allow them to discover The Economist’s progressive liberalism for themselves.</p> <p>Using the rationale 'There is nothing more provocative than the truth’, the aim was to show user relevant content that would help alter their view of the publication.</p> <p>Using subscriber data, the marketing team built seven lookalike segments that reflected the different sections of The Economist. </p> <p>More than 60 executions were created, many in near real time (from its live newsroom). </p> <p><img src="https://assets.econsultancy.com/images/0007/6972/economist_programmatic.png" alt="" width="640" height="401"></p> <p>Economist ads led with topics like the CIA's use of torture within hours of the story breaking.</p> <p>Having piqued reader curiosity, The Economist not only wanted the prospect to read the related article, but to read yet more targeted content (knowing it takes four to five articles before a prospect considers subscription).</p> <p>Ads pulled readers directly through to The Economist bespoke content hub. On serving the next article likely to be of most interest, the reader was nudged to register and, ultimately, subscribe.</p> <p>From a media budget of £1.2m, the campaign successfully got 3.6m to take people action, sample The Economist in context, and become re-targetable contacts.</p> <p>A campaign ROI of over 10:1 was achieved from the initial revenue stream brought in by these prospects.</p> <h3>So...</h3> <p>The increasing reliance on machine-driven ad buying certainly presents some interesting challenges for creatives.</p> <p>But those who suggest that programmatic might kill creativity have probably misunderstood how the technology works.</p> <p>Campaigns will always require a strong central idea and a compelling story that runs through all the various channels.</p> <p>Programmatic is really just a new delivery method that enables marketers to optimise different elements to make that particular message more relevant or appealing to that specific consumer.</p> <p>The Economist case study shows that creativity coupled with programmatic targeting can yield excellent results.</p> <p>The best campaigns are those that create an emotional connection with a brand, and as yet that requires a level of creativity that’s beyond even the smartest artificial intelligence.</p> <p>So although programmatic has begun to revolutionise ad buying and optimisation, it will be some time before we read an agency press release celebrating the new hire of a pair of creative bots.</p> <p><em>This article was originally published in Econsultancy’s <a href="https://econsultancy.com/reports/top-100-digital-agencies/">Top 100 Digital Agencies 2016 Report</a>.</em></p> <p><em><strong>To find out more, why not attend <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With the Programmatic</a>, Marketing Week and Econsultancy's one-day conference on 21st September in London, to hear from brand and agency experts.</strong></em></p> tag:econsultancy.com,2008:BlogPost/67931 2016-06-13T14:20:32+01:00 2016-06-13T14:20:32+01:00 Why all the excitement surrounding Facebook’s Dynamic Ads? Lauren Evans <p>Because they're starting to really take off.</p> <p>In fact, the growth in product-focused dynamic ads (originally called Dynamic Product Ads) is believed to be one of the factors that helped spend on social ads jump 86% year-on-year in Q1 2016 according to Kenshoo data (see chart).  </p> <p>And dynamic ads, coupled with growing Instagram advertising, helped push social spend in Q1 2016 higher than Q4 2015, going against the grain of typical seasonal spend patterns.</p> <p><img src="https://assets.econsultancy.com/images/0007/5969/facebook_dynamic_ads.png" alt="" width="464" height="233"></p> <p><img src="https://assets.econsultancy.com/images/0007/5970/facebook_dynamic_ads_2.png" alt="" width="464"></p> <p>So what is behind the increasing interest in this ad format?</p> <p>Here are three important things you should know about dynamic ads.</p> <h4>1. They were designed to make advertising easier for retailers who have a large product inventory</h4> <p>Dynamic ads were introduced in early 2015 to give retailers an effective, automated way to promote large numbers of products on Facebook.</p> <p>To use this ad format, advertisers have to connect their online product feed to their Facebook ad accounts.</p> <p>This allows Facebook to dynamically generate ads for individual products and show them to relevant audiences.  </p> <p>Product IDs, names, descriptions, landing page and image info is automatically pulled from the feed to build the ads, hence the ‘dynamic’ in the name.</p> <p><img src="https://assets.econsultancy.com/images/0007/5971/facebook_Walgreens_ad.jpg" alt="" width="800"></p> <p>Dynamic ads can support thousands of products and as long as your feed is up to date, any items that are out-of-stock will never be shown.</p> <p>You can choose to display a single product image or video per ad, or showcase a carousel of up to ten products within a single ad unit.</p> <p>You might use the carousel format to show a pair of shoes in several colours for example, or a selection of jeans in a specific price range.</p> <p>Typically we’ve found that between three and five related products in a carousel produces the best results.</p> <p>To date, more than 2.5bn unique products have been uploaded to the dynamic ads for Facebook format.  </p> <p>And as of April 2016 dynamic ads have also become available to advertisers on Instagram.</p> <h4>2. Retargeting and personalisation are a key part of their success</h4> <p>You can target dynamic ads at people’s interests, likes or demographic profile, as well as to <a href="https://econsultancy.com/blog/64980-put-your-email-list-to-work-facebook-custom-audiences/">custom audiences</a> extracted from your customer database or email lists.</p> <p>And what’s been really effective, is retailers using this ad format to retarget those who have visited their website or app.</p> <p>Facebook provides a custom audiences pixel which tracks the product pages a visitor has viewed, which products they’ve added to shopping baskets and what they’ve purchased.</p> <p>This allows advertisers to show people personalised ads based on their behaviour and interaction with their products online.</p> <p>So a retailer can, for example, target someone who’s looked at a specific product page and show them ads displaying different versions of the same or related products or offer incentives to help them convert.</p> <p>This kind of intent-based retargeting makes ads less intrusive.</p> <p>And is one of the reasons why we’ve seen clients generating click-through rates of 1.7% in Q1 of 2016, outperforming the overall social average of 1.0%.</p> <p>Facebook recognises the value of personalised behavioural targeting and has added new options to retarget based on stronger intent signals - such as when a visitor has gone to the same page a number of times or spent a certain amount of time there.</p> <p>You can also retarget based on the value of their last purchase.</p> <h4>3. They’re now available to travel advertisers</h4> <p>Facebook now believes that dynamic ads can appeal to more than just product advertisers.</p> <p>So in the first instance it has started making them available to travel advertisers to run more personalised retargeted ads.</p> <p>Initially a select number of travel advertisers are able to retarget hotel ads to online visitors who have browsed hotels or bought flights from their sites.  </p> <p>The ads can be dynamically updated with hotel availability and pricing for the booking window and the location someone has shown an interest in, for example.                                               </p> <p>Looking ahead you can quite clearly imagine other travel services that could be advertised in this way aligned to purchase intent.  </p> <p>For example car rental ads could be retargeted based on time and location that someone has browsed.</p> <p>And it would not be a big leap to envisage this type of dynamically retargeted ad working for other verticals besides travel.</p> <p>The danger with any kind of advertising is that it can seem invasive and an unwelcome interruption.  </p> <p>Dynamic ads are showing that it’s possible to sidestep this with high performing automated social campaigns that make ads meaningful and relevant to the audience.</p> <p><em>For more on this topic, read:</em></p> <ul> <li><a href="https://econsultancy.com/blog/67924-is-facebook-doing-enough-to-prevent-fraudulent-ads"><em>Is Facebook doing enough to prevent fraudulent ads?</em></a></li> <li><a href="https://econsultancy.com/blog/67879-facebook-s-busy-may-2016-provides-new-opportunities-for-marketers"><em>Facebook’s busy May 2016 provides new opportunities for marketers</em></a></li> <li><a href="https://econsultancy.com/blog/67603-what-marketers-need-to-know-about-facebook-s-livestreaming-push/"><em>What marketers need to know about Facebook's livestreaming push</em></a></li> </ul> tag:econsultancy.com,2008:BlogPost/67881 2016-05-26T13:42:32+01:00 2016-05-26T13:42:32+01:00 Seven big challenges facing healthcare marketers Patricio Robles <h3>1. Digital underinvestment</h3> <p>By some estimates, healthcare spending in the US is close to 20% of GDP, but healthcare marketers aren't funneling much of their marketing dollars into digital. </p> <p><a href="https://econsultancy.com/blog/67131-pharma-s-mobile-social-efforts-aren-t-as-healthy-as-they-should-be">According to</a> Deloitte Consulting, healthcare and pharma marketers spent just $1.4bn on digital ads, a figure that lags marketers in other industries.</p> <p><img src="https://assets.econsultancy.com/images/0006/8525/deloitte1.jpg" alt=""></p> <p>One of the consequences of this digital underinvestment is that this has created opportunities for third parties to become the go-to resources for consumers and physicians looking for healthcare information online.</p> <p>This is despite the fact that, in many cases, healthcare marketers' organizations have valuable, proprietary data and content.</p> <h3>2. Measurement &amp; metrics</h3> <p>While measurement is top-of-mind for most marketers, it hasn't been as important in healthcare because of the role marketing has played historically in healthcare organizations.</p> <p><a href="https://econsultancy.com/blog/67863-healthcare-marketers-making-progress-on-measurement-metrics/">That's changing</a>, and many organizations have adopted a number of sensible growth and brand-related metrics.</p> <p>But adoption of metrics related to stakeholder engagement and marketing communications, including patient satisfaction and paid media, are still undervalued, which can make it more difficult for healthcare marketers to "connect the dots."</p> <p><img src="https://assets.econsultancy.com/images/0007/5068/hccforating.png" alt=""></p> <h3>3. Market structure</h3> <p>Healthcare is not a typical market. In the US, few consumers pay directly for care and drugs; instead, third parties like insurers pay the bills and control where, when and how consumers access the healthcare system.</p> <p>For marketers, this presents a number of challenges. One of the biggest: even if you can persuade a consumer that your hospital provides the highest quality of care or that your drug is the most effective, the consumer might not be able to access your product or service.</p> <p>So in many cases, healthcare marketers find themselves playing a game of triangulation involving consumers and care providers, like hospital systems and physicians.</p> <p>For obvious reasons, this makes developing an effective marketing strategy a more complicated proposition.</p> <h3>4. The trust gap</h3> <p>The healthcare industry, and pharma in particular, doesn't have the best reputation thanks in part to <a href="https://econsultancy.com/blog/67590-can-targeted-social-ads-help-pharma-overcome-drug-pricing-controversy">controversies over subjects like drug pricing</a>.</p> <p>That has created a trust gap in which consumers as well as physicians are less likely to trust ads and information that come from healthcare marketers.</p> <p><img src="https://assets.econsultancy.com/images/0006/8526/deloitte2.jpg" alt="" width="635" height="467"></p> <p>To rectify this, healthcare marketers <a href="https://econsultancy.com/blog/67747-pharma-marketers-should-use-storytelling-to-improve-the-industry-s-reputation">will need to become more adroit at storytelling</a>.</p> <p>Unfortunately, as Alexandra von Plato, group president of North America for Publicis Healthcare Communications Group, has observed, "We neglect the origin story. Instead we run these dumb ads," referring to the ubiquitous and oft-parodied television ads promoting prescription drugs.</p> <h3>5. Lawmakers</h3> <p style="font-weight: normal;">Those <a href="https://econsultancy.com/blog/67227-ban-on-consumer-ads-could-make-pharma-s-digital-shortcomings-more-costly">"dumb ads" haven't made fans of physicians</a>, and the aforementioned drug pricing controversy has made pharma companies Enemy #1 for some lawmakers in the US.</p> <p style="font-weight: normal;">That could soon have a dramatic impact on healthcare marketers as lawmakers consider reigning in how healthcare marketers promote their wares to professionals and the public.</p> <p style="font-weight: normal;">Given how reliant pharma marketers in particular have become on television ads, and how underinvested they are in digital, greater restrictions on advertising could make life very difficult.</p> <h3>6. HIPAA</h3> <p>Consumer adoption of wearables is growing but healthcare marketers are struggling to take advantage of wearable opportunities.</p> <p><a href="https://econsultancy.com/blog/67074-is-the-healthcare-industry-prepared-for-wearables">There are a number of reasons for this</a>, but one might be HIPAA, the Health Insurance Portability and Accountability Act, which regulates the use of Protected Health Information (PHI).</p> <p>Healthcare organizations regulated by HIPAA <a href="http://www.healthcareitnews.com/news/are-wearables-violating-hipaa">must receive consent</a> from patients before their PHI is used for marketing purposes, and there are many grey areas, particularly as far as innovative technologies such as wearables are concerned.</p> <p>That means healthcare marketers realistically don't have the same flexibility as marketers in other industries that aren't subject to HIPAA.</p> <h3>7. Data</h3> <p>Out of necessity, healthcare organizations may be adept at dealing with issues related to data security.</p> <p>However, as a recent Econsultancy and Ogilvy CommonHealth report - <em><a href="https://econsultancy.com/reports/healthcare-study-organizing-marketing-in-the-digital-age/">Organizing Healthcare Marketing in the Digital Age</a> -</em> discovered, a majority are unprepared to deal with emerging data sources or to collect high volumes of data at speed.</p> <p>Furthermore, a surprising large number of organizations (44%) aren't even prepared to use their CRM data in marketing campaigns.</p> <p><img src="https://assets.econsultancy.com/images/0006/7696/Screen_Shot_2015-10-05_at_18.50.56.png" alt=""></p> <p>Because effective collection and use of data is increasingly integral to successful digital marketing, healthcare marketers' capabilities around data will need to improve.</p> tag:econsultancy.com,2008:BlogPost/67840 2016-05-23T14:29:29+01:00 2016-05-23T14:29:29+01:00 Highly targeted online ads don't work: Stanford researchers Patricio Robles <p>Eilene Zimmerman <a href="http://www.gsb.stanford.edu/insights/pedro-gardete-real-price-cheap-talk">explains</a>...</p> <blockquote> <p>In this case, the researchers were looking at cheap talk in retail, for example, an ad promising 'Lowest Prices in Town'.</p> <p>That can be credible when it’s used to draw in appropriate customers; in this case, those who are price sensitive.</p> </blockquote> <p>At the same time...</p> <blockquote> <p>They found that the most personalized ads were less effective because consumers worried they were being exploited.</p> <p>For example, says [Stanford Graduate School of Business professor Pedro Gardete], someone looking for a prom dress 'might get an ad from a retailer saying, "We have a wide selection of prom dresses! Click on this link!" The consumer clicks, and it turns out the retailer has dresses for all occasions but not specifically proms,' says Gardete.</p> <p>Those kinds of ads frustrate consumers and eventually become meaningless to them.</p> </blockquote> <p>Based on this, Gardete suggests that businesses might adopt a "less is more" approach in which less information is collected, information collection is more transparent, and targeting is used more sparingly. </p> <h3>Theory versus reality</h3> <p>While there's no doubt that a growing number of consumers are concerned about their privacy and how marketers are using information to track and target them, given the continued level of interest and investment in targeting tech and targeted ad offerings, does the researchers' model actually reflect reality?</p> <p>Obviously, a hypothetical retailer falsely promoting that it has a wide selection of prom dresses when it doesn't isn't likely to see good results, <strong>but this isn't how most experienced digital marketers are operating.</strong></p> <p>Instead, <a href="https://econsultancy.com/blog/64099-what-is-retargeting-and-why-do-you-need-it/">retargeting</a> (and <a href="https://econsultancy.com/blog/10194-the-roi-of-personalisation-infographic">personalisation</a>) are widely seen to drive ROI in the real world.</p> <p>As an example, AdRoll, a performance marketing platform provider, detailed <a href="https://www.adroll.com/sites/default/files/resources/pdf/case-study/AdRoll%20Case%20Study%20-%20Chubbies.pdf">in a case study</a> (PDF) how one apparel retailer used retargeting to deliver a 10.5x average ROI, 13% conversion lift and 33% lower CPA than average for other apparel retailers.</p> <p><a href="https://econsultancy.com/blog/64980-put-your-email-list-to-work-facebook-custom-audiences">Facebook Custom and Lookalike Audiences</a> have delivered similarly impressive results.</p> <p>Crowdfunding platform Tilt <a href="https://www.facebook.com/business/success/tilt">doubled</a> its conversion rate using Custom Audiences, and lowered its mobile cost per install by 30% using Lookalike Audiences.</p> <p>And Hospitality giant MGM <a href="https://www.facebook.com/business/success/mgm-resorts-international">realized</a> a greater than 5x return on spend using Custom Audiences.</p> <p>Needless to say, any specific marketer's mileage will vary, but on the whole, marketers are becoming more and more adept at targeting consumers online and doing so to good effect. </p> <p>That doesn't mean that marketers should rely on targeted ads exclusively, and the Stanford research is a reminder that targeted ads need to deliver what they promise to consumers.</p> <p>But targeted ads are here to stay because they work well enough of the time, even if <a href="https://econsultancy.com/blog/67830-young-users-aren-t-fans-of-targeted-social-ads-report/">many consumers say they don't like them</a>.</p> tag:econsultancy.com,2008:Report/4093 2016-04-12T12:23:00+01:00 2016-04-12T12:23:00+01:00 People-Based Advertising in North America <h2>Overview</h2> <p>The <strong>People-Based Advertising</strong> report, produced in collaboration with <strong><a title="Signal" href="http://www.signal.co/">Signal</a></strong>, is based on a survey of more than 350 brand marketers and media buyers in <strong>North America</strong>. It explores the hypothesis that smarter, data-driven, people-based display advertising is an important alternative to the legacy model that is failing the online ecosystem.</p> <p>With the unpleasant realities of ad blocking, fraud and viewability concerns weighing on marketers' minds, this report explores whether smarter, data-driven, people-based display advertising is a viable important alternative to the legacy model that is failing the online ecosystem.</p> <h2>What you'll learn</h2> <ul> <li>What are the issues with display keeping advertisers up at night?</li> <li>How are companies managing the data governance issues created by the relative marketing dominance of brands such as Google, Facebook and Twitter?</li> <li>How important is the process of onboarding in the future that advertisers envision?</li> <li>Are consumers likely to be less compliant in the future about the use of their data in addressable media?</li> </ul> <h2>Who should read this report?</h2> <p>The report is essential reading for both in-house marketers and agency professionals based in North America, as well as those outside the region who want to understand how people-based advertising is evolving in these countries.</p> tag:econsultancy.com,2008:BlogPost/67731 2016-04-11T14:27:17+01:00 2016-04-11T14:27:17+01:00 Think affiliate marketing doesn’t work for luxury brands? Think again Chris Bishop <p>But no longer. Affiliate marketing has truly come of age.</p> <h3>Isn’t affiliate just voucher codes?</h3> <p>This is not just about voucher codes, cashback and last-click for advertisers, this is part of a holistic approach to digital advertising that promises real and sustained ROI for high-end brands.</p> <p><img src="https://openmerchantaccount.com/img2/whoaretheaffiliates.jpg" alt=""></p> <p>The modern managed affiliate programmes use sophisticated groups of content publishers, including mainstream “offline” publishing houses such as Condé Nast.  </p> <p>This is performance marketing through deep partnership, levered via tenancy, editorial, blogging, email and (yes) incentives like voucher codes or cashback. </p> <p>Partnerships with high volume and niche sites that can deliver the kind of primed-to-buy, long tailed traffic available nowhere else.</p> <h3>Are you at risk of losing control of your message?</h3> <p>No, but…</p> <p>For years affiliate networks and technology companies used the size and scale of the channel as a key selling point, promising brands access to tens of thousands of affiliates.  </p> <p>Given that they worked on tracking fees based upon revenue generated by activity, who can blame them? </p> <p>However, this wasn’t what luxury or designer retailers, already nervous about losing control of their brand’s messages, wanted to hear. </p> <p>Only now, with dedicated, digital agencies selling these solutions as part of a wider media strategy, are brands being given the whole picture.</p> <p>When properly managed, affiliate marketing allows brands to deliver relevant messages to highly-targeted customer segments.  </p> <p>But it’s the size and scale of the networks that makes this targeting possible in the first place.</p> <h3>But isn’t luxury all about exclusivity?  </h3> <p>Why would luxury brands want their valuable name bandied about on affiliate channels with everyone else’s?</p> <p><img src="https://openmerchantaccount.com/img2/chriscarcollection.jpg" alt=""></p> <p>Success in the digital age requires a change in mind-set for luxury brands as customers’ buying cycles accelerate and competition stiffens in every part of the market place.  </p> <p>No longer can scarcity be the strongest value in a luxury brand's armoury, as the array of choice and quality available elsewhere can fill any sales vacuum.  </p> <p>Instead, luxury today is defined by desirability, product excellence, exemplary service and, fundamentally, a brand promise.</p> <p>And affiliate channels are exactly where a brand’s promise, desirability, service and excellence are defined for its target audience.  </p> <p>They are key to the continued success of luxury brands in the digital age and are proven to send ready-to-convert customers direct to online stores.   </p> <h3>Luxury is talked about and bought online more than ever</h3> <p>Deloitte says that 58% of UK millennial luxury consumers buy their luxury goods online. What’s more, 85% of luxury consumers regularly use social media.</p> <p>According to Google one in five luxury purchases happens on the web.</p> <p>And participating in high profile online retail events like Black Friday and Cyber Monday clearly doesn’t dim the lustre of a luxury brand or cannibalize their full-price sales.</p> <p>In 2015 our client NET-A-PORTER saw Black Friday was its highest day for sales that year, with one item sold every second on its website. </p> <p>What’s more, offering deals and vouchering is not regarded as damaging to luxury brands’ reputation by consumers.  </p> <p>In fact, these luxury customers were four times more likely to be searching for deals on Black Friday 2015 than non-luxury customers (Experian).</p> <h3>Do affiliate tactics really deliver incremental sales to luxury brands?</h3> <p>Yes, they do.</p> <p>One of our retailers had always assumed cashback websites would only reach customers already on its files and has little effect on overall profit. We helped them prove otherwise.  </p> <p>A tactical trial conducted with Quidco for the brand found that 86% of consumers that bought their products via the publisher during the trial were “new to file” and their average order value was much higher than the norm.</p> <p><img src="https://openmerchantaccount.com/img2/shopstylesolacelondon.jpg" alt=""></p> <p>For another fashion retailer, working with affiliates achieved over 300 pieces of content coverage in a three-month period which, in turn, contributed to content websites driving 50%+ of the brand's affiliate revenue.</p> <p>Affiliate channels have proved, time and time again, to bring new customers and incremental sales to the table for every kind of brand, particularly those at the very top end of their sector.</p> <h3>Who else is using affiliates?</h3> <p>The roll call of brands that are using the affiliate channel as part of the marketing mix is impressive – Agent Provocateur, Barneys New York, Burberry, Liberty London, NET-A-PORTER to name a few.</p> <p>But if the affiliate channel was just about vouchers and cashback, they wouldn’t be using it.</p> <p>These brands know the value of curated conversation and content-led buzz to their brand; they are finding new and exciting ways to engage through affiliate marketing.  </p> <p>Crucially, they are realising that careful planning, targeted partnership and innovative execution ensures the biggest ROI alongside an extension of digital PR.</p> <h3>The lessons of affiliate marketing</h3> <ul> <li>Luxury affiliate marketing is happening... if you’re not doing it, you’re already losing out.</li> <li>Luxury consumers are savvy, switched on and impulsive – take advantage of that.</li> <li>Be led by the data and use experts to help you execute the highest quality campaigns.</li> <li>Choose who manages your affiliates carefully – your brand’s success will live or die by their experience both within wider digital marketing, the specific affiliate channel and naturally their knowledge of your brand / sector.</li> </ul> tag:econsultancy.com,2008:BlogPost/67680 2016-03-29T14:04:00+01:00 2016-03-29T14:04:00+01:00 Cross-device measurement: what to look for in a solution James Collins <h3>We have the technology</h3> <p>I am reminded of Steve Austin, the astronaut from the popular 1970s TV series, The Six Million Dollar Man. His team set out to “rebuild” him, using the latest technology to design the first bionic man.</p> <p>Similarly, the technology exists to connect user journeys across screens – desktop, mobile, tablet, connected TVs and others. Through a <a href="https://econsultancy.com/blog/67110-what-does-the-rollout-of-google-cross-device-conversions-mean-for-marketers">cross-device tracking</a> solution, we have the technology to fix broken user journeys and ultimately improve the conversation between brands and consumers.</p> <p><img src="https://assets.econsultancy.com/images/0007/3390/six.jpeg" alt="six million dollar man" width="225" height="225"></p> <h3>Shopping for a Solution</h3> <p>To truly understand consumer behavior, you need to identify the role different devices play in the customer journey. I have compiled a “buyer’s guide” of five things you should consider when choosing a cross-device measurement solution.</p> <p><strong>1. Look for any joins you already have</strong></p> <p>Most businesses are sitting on piles of first party data; the first step to understanding the customer journey is to look inwards and see what you already have.</p> <p>It is likely that you will have lots of chances to join data within your organisation. Your customer database is a great source and a natural place to start. The solution you choose should be able to integrate this data and build from there. </p> <p><strong>2. Look for ways to enhance the data </strong></p> <p>Work with your measurement provider to add to your current data set.</p> <p>Your solution should allow for importing any <a href="https://econsultancy.com/blog/67674-what-are-first-second-and-third-party-data">first party data </a>where a user provides information that is consistent across devices, like an email address, customer ID or login. Of course, PII data (personally identifiable information) must be hashed and encrypted to safeguard users’ privacy at all times. </p> <p>Your provider should be able to create deterministic joins based on first party data collected and joined. Keep in mind, you are not going to get every match right – no data is 100% accurate.</p> <p>Even with deterministic first party data, there are circumstances that make the data less accurate, such as when multiple people use the same machine or when households share an email address.  </p> <p><strong>3. If you can’t find them, buy them</strong></p> <p>Your data can only get you so far. What about those who are visiting your site on their mobile or tablet for the first time, who you have yet to identify?</p> <p>Whether your provider buys the data or creates it themselves, this is where probabilistic joining comes in. Probabilistic identification involves ‘fingerprinting’ devices using a variety of attributes, such as number of cookies stored, device IDs, public data such as IP addresses and behavioural data (geographic location and movement of devices geographically across time).</p> <p>All of these factors are combined to connect disparate devices to the same user.</p> <p><img src="https://assets.econsultancy.com/images/0007/3391/print.jpg" alt="fingerprint" width="250" height="234"> </p> <p><strong>4. Use deterministic joins to increase confidence in probabilistic data </strong></p> <p>Probabilistic device joining is often very accurate, but since the process employs algorithms, analysis and probabilities to match devices there will always be a degree of inaccuracy. The ‘accurate’ deterministic data can be used to validate the joins made by the probabilistic approach.</p> <p>For example, take a user who’s identified themselves on two devices – has the probabilistic data also matched the same devices, or is it saying something completely different; then repeat this process as required. A cross-device solution provider should be able to provide the degree of accuracy for the data they have joined.  </p> <p><strong>5. Use the data to take action </strong></p> <p>Similar to painting a room, the hard work is done before you actually put fresh paint on the walls. It is in the prep, the patching and the priming that makes a newly painted room shine.</p> <p>Now that you have done the work to create the joins, you can look at all of your marketing performance and use the insights to enhance your marketing. </p> <h3>A smarter abandoned basket campaign</h3> <p>Cross-device data can be used to improve marketing effectiveness and efficiency in many ways. One example is when managing <a href="https://econsultancy.com/blog/67534-from-checkout-to-conversion-how-to-prevent-basket-abandonment">abandoned basket </a>campaigns – when a customer adds items to their online basket but does not place an order.</p> <p>A problem arises when customers are targeted with email reminders based on shopping cart abandonment on a single device. This strategy does not take into consideration real user behaviour – shopping and browsing on tablet or mobile, but making a purchase on desktop, or vice versa.</p> <p>Without a view across devices marketers are unable to see if people have actually converted, and ultimately this can result in a poor experience.   </p> <p>To be successful at targeting users who have left items in their online basket, you need a solution that captures and joins behaviour across all screens, enabling you to send relevant and timely emails to re-engage consumers. By using this insight, brands can make their emails more effective and ensure they don’t retarget customers with products they have already bought. </p> <h3>A Smart Solution for your Business</h3> <p>Marketers need to understand their customers’ cross-device journeys and through harnessing this information they can develop smarter marketing campaigns.</p> <p>When working with a cross-device solution provider, each business should strive to use their data in a pragmatic way, understanding the value that will be gained from creating this joined up view.</p> tag:econsultancy.com,2008:Report/4052 2016-03-22T09:49:00+00:00 2016-03-22T09:49:00+00:00 People-Based Advertising in Australia <h2>Overview</h2> <p>The <strong>People-Based Advertising</strong> report, produced in collaboration with <strong><a title="Signal" href="http://www.signal.co/">Signal</a></strong>, is based on a survey of more than 350 brand marketers and media buyers in <strong>Australia</strong>. It explores the hypothesis that smarter, data-driven, people-based display advertising is an important alternative to the legacy model that is failing the online ecosystem. </p> <p>With the unpleasant relalities of ad blocking, fraud and viewability concerns weighing on marketers' minds, this report explores the hypothesis that smarter, data-driven, people-based display advertising is an important alternative to the legacy model that is failing the online ecosystem.</p> <h2>What you'll learn</h2> <ul> <li>What are the issues with display keeping advertisers up at night?</li> <li>What premium are brands willing to pay for people-based advertising?</li> <li>How are companies managing the data governance issues created by the relative marketing dominance of brands such as Google, Facebook and Twitter?</li> <li>How important is the process of onboarding in the future that advertisers envision?</li> <li>Are consumers likely to be less compliant in the future about the use of their data in addressable media?</li> </ul> <h2>Who should read this report?</h2> <p>The report is essential reading for both in-house marketers and agency professionals based in Australia or North America, as well as those outside the region who want to understand how people-based advertising is evolving in these countries.</p>