Tag Archives: Media

Weekly News Roundup

Spending on digital entertainment tipped to hit $40b by 2018

The entertainment and media industry in Australia is expecting a growth of $40 billion by 2018. This includes consumer and educational books, consumer magazines, filmed entertainment, free-to-air television, interactive games, the internet, music, newspapers, out-of-home advertising, radio and subscription television. “Australia has the world’s highest rate of mobile broadband subscriptions per head.” Amongst this, the article reports that streaming online is at a height.

Will Brand Dollars Ever Come to App-Install Ads?

Moving to mobile is the new trend that Facebook and Twitter have noticed growing. Brands are also taking notice to this and working their way to target consumers in a new way. The article states that consumers are most likely to be on their mobile devices. “Do Facebook and Twitter need brand dollars to shift to app-install ads, or can they keep riding the Candy Crushes of the world to fuel their growth?” Facebook and Twitter are nervous about how things are unfolding due to the demand in ap-install ads driving high revenue.

Americans Spend More Time Than Ever on Mobile Apps

More than ever before, individuals are using mobile. According to the article, users are spending 65% more time on mobile devices. The article also shows graph charts displaying how much mobile apps are used per month and the time per month they are used. An interesting fact about this is that the age that spends the most time per month on mobile apps are from 18 to 24-year-olds (approximately 37 hours per person). However those between the ages of 25 and 44 years old are accessing the greatest number of apps (29.5).

Global Ad Growth Poised To Double, Digital’s Expansion Begins To Ebb

According to the article, the rate of global advertising growth will more than double this year. The two obvious factors that will increase the global advertising spend are the world cup and winter olympics. However, the increase in digital and mobile advertising also has a big impact. eMarketer forecasts the global advertising spend will reach $545.4 billion this year. Digital ad spending is projected to go up 16.7% as well.

Mobile, Video, And Real-Time Bidding Are Driving A Boom In Digital Advertising

The digital advertising market is evolving at an exponential rate. The three areas that have experienced significant growth are mobile, video, and programmatic. According to the article, “Mobile is the fastest-growing ad medium, and will see 43% annual growth between 2013 and 2018.” Companies that have invested in programmatic ad buying technology have also shown great success. It is without a doubt that these three types of digital advertising will be the future of online marketing.

Globe and Mail
Source: Globe and Mail

Attribution Is Where It’s At

In a session on interpreting multiple data sets at ad:tech NYC, a panel was asked “What data set or point is at the top of your wish list?” The answers were not surprising:

  • Individual psycho-behavioral information
  • TV viewer behavior and conversion
  • Attribution

Attribution was one of the hottest topics at ad:tech. Everyone acknowledges that marketers have made great strides in using attribution to fine-tune their digital advertising strategies. But the Holy Grail of accurate cross-channel, cross-platform, cross-device attribution remains elusive.

Why is attribution so important? The simplest answer is efficiency. Understanding what spurs conversion helps marketers mold their strategies for maximum ROI. There is nothing simple about attribution, however, in a world where the classic purchase funnel has become more of a maze.

Credit where credit is due

Several of the panelists at ad:tech warned of the fallibility of last-click attribution models. Generally, last-click/last-view models favor search. What marketers really need is the ability to give proportional credit to all marketing channels and to understand how cross-channel and intra-channel assists contribute to conversion. While technologies can help marketers gain insight where tracking is possible, no one has been able to address the biggest challenge of all – cross-device attribution. Until someone cracks that code, analyzing behavior across all of the devices consumers are using is more art than science.

So much media …

As the list of devices that consumers use grows, so does the list of publishers and media outlets. Today’s campaigns run across search, social, display and TV, with multiple permutations within each of those channels. So how does a marketer know what really works?

One suggestion from ad:tech panelists was to keep a good marketing calendar and make sure that calendar is shared across media planning and analytics teams. By overlaying time-based data on an up-to-date calendar comprising all elements of a campaign, marketers can get a sense of causality that the numbers alone can’t provide.

Another tip offered was to compare multiple attribution models rather than putting all stock in one methodology. In one case study presented, analysis found that by using a last-click attribution model, only two of the tested creatives were winners. When assists were considered, though, five of the creatives contributed to conversions. Especially in testing creative and placement, considering alternate attribution models can keep marketers from throwing out good creative.

Other presenters encouraged marketers to be bold and creative in their testing: “turn off your branding campaign in order to measure attribution; bring offline data into an anonymous cookie pool to sync with online data; test for causality beyond conversion; explore new data sets,” they said.

Not without challenges

Attribution is a fairly new science, so, of course, it’s still evolving and will need to continue to adapt as the landscape changes. Some of the challenges that technology companies and marketers will be trying to overcome in the near future include:

  • Four-screen attribution – Single users on multiple devices create the biggest challenge in positively identifying “what works.”
  • Audience verification and cookie management – The lack of tracking capabilities for mobile and TV prevent an accurate account of how those platforms contribute to campaign success.
  • Over-abundance of data – It would seem logical that more data is better, but that’s only true if marketers understand which data really matter and don’t get buried in an avalanche of numbers that prevents them from reaching meaningful conclusions.
  • Protecting privacy – Consumers are more wary of tracking tactics than ever, making it all that much more important for marketers to be mindful of protecting their customers’ privacy.
  • Staffing for the new world – In an environment where CMOs are projected to spend more on technology than CIOs, the need for new roles is becoming evident. Agencies and marketers will need to have someone on staff to evaluate the diversified and specialized landscape of tech providers to create the right tech stack for each client and campaign, and make sure that these disparate solution providers work together.

Attribution is guaranteed to be a focus of ad tech and data providers as they strive to create more sophisticated models and overcome technical challenges. Marketers who aren’t paying attention are missing out on one of the best ways to really understand their customers’ behavior.

Looking Beyond the Click – Closing the Conversion Webinar

On Thursday, November 8, Dave Ragals, SVP of Client Solutions conducted a webinar that centered on how digital marketing does not end with the click-through of an ad.

Media messaging through different channels directs the proverbial horse to water, but that does not influence them to drink, or in this case, convert. Much of this effort could be wasted if there is a bad on-site experience.

Our industry has worked so hard to personalize the media experience – so why not also tailor the most important part on the consumer’s path to conversion: the on-site experience?

By leveraging user-level data and understanding cross-channel touchpoints and behavior, marketers are better able to understand visitor interest and propensity to buy and apply that knowledge to the user’s experience on-site. This form of customer experience enhances the probability that the user will indeed convert.

Dave discusses a case study that illustrates on-site optimization in action. This marketer makes use of the visitor’s browsing history to personalize his on-site experience, resulting in outstanding growth. This real-life example expresses that there is more to closing a conversion than just optimizing for a click.

Media and Conversion Optimization – A Holistic Approach

By Stephan van den Bremer, Managing Director, Europe

The online media world is changing rapidly. Technology is playing an important role here. Homepage take-overs, video pre-rolls, dhtml banners: all examples of technology innovations of the last couple of years seducing marketers to spend more of their media budget. Data has also changed the digital media landscape, where retargeting was a buzzword three years ago, nowadays it is offered by almost everybody. Real-time bidding, which has existed for awhile in paid search, is another innovation that impacted the display media buying, stimulating performance based marketing even more.

With so much media technology available, sometimes it seems like marketers forget that the ROI of media spend largely depends on what happens on the site as well. Recently, we had a discussion with a client who experienced more and more difficulties getting additional traffic to the site below a certain Cost Per Acquisition (CPA). Their logical conclusion was to focus on conversion optimization now and allocate budget accordingly.

This principle is exactly what we learned in school under Gossen’s First Law, named after the German economist Hermann Gossen. Very basically described, it means that every additional euro spent adds less value than the previous one. For example, the first media euro that you spend will bring ten new visitors to your website, where the second euro perhaps will generate nine additional visitors. The hundredth euro may only deliver one extra visitor. That last additional visitor cost 1 euro, whereas the first visitor cost just 0.10 euro. Alternatively, that euro could also have been spent on conversion optimization (optimizing forms, order pages, pro-active engagements, content personalization, etc.).  If, for example, this investment improved the conversion rate from 10% to 11%, that would have been the equivalent of one incremental sale based on 100 visitors. This would result in an ROI that is ten times higher than spending that euro on media.

Of course, for conversion optimization, this principle is valid as well. The ROI of every additional euro will decline as more money is spent. But there is an additional effect: an increase in conversion rate will bring the CPA of media down as well, which perhaps, in turn, makes it viable again to raise media spend.

My point is not to prefer conversion optimization above trafficking, but to take a holistic view as a marketer. Putting media and conversion optimization in silos will lead to a sub-optimal allocation of marketing budget. To start with, there should be one budget, one responsibility and one integrated technology. Each company will discover which starting point works best, whether it is on the media side or conversion side.