Tuesday, April 30, 2013

For CPGs, Mobile Ads Meet Awareness Goals

With broad audience base, CPGs seek to reach consumers across devices and platforms
Experimenting with various mobile advertising tactics has helped CPG marketers stand out among other industries. As consistent spenders in the mobile advertising space, Millennial Media reported that from 2011 to 2012, the consumer goods vertical grew 235% on its platform. In addition, a study by comScore and Millennial Media found that the vertical’s primary goal of driving brand awareness is a core reason for expanded reliance on the mobile platform.

According to comScore and Millennial’s findings, when compared with all advertisers, 46% of consumer goods campaigns worldwide in 2012 focused on brand awareness, while only 14% of advertisers across all verticals focused on the same goal for their mobile ads. Other common goals among consumer products advertisers were site traffic and sustained in-market presence.

Because CPG brands are primarily purchased in physical stores, awareness-focused campaigns are typically more effective than direct response.

How to drive consumer loyalty via mobile

Loyalty schemes are big business. You only have to look at Tesco’s Clubcard, Boots Advantage and Nectar points to see how effective they are at drawing consumers in and creating brand loyalty on the high street.
But looking around the globe traditional loyalty models are being taken on by the mobile revolution. Brands using their mobile channel to target engaged consumers and deliver smarter, personalised deals are giving traditional routes a run for their money.
Here are five great ideas for how you can create loyalty with mobile users and ultimately give them what they want: better service, rewards for brand advocacy and, of course, money-off deals.

Digital Coupons, Mobile Give Cheapskates Staying Power

The Great Recession put a wide swath of US consumers on the money-saving path, and digital tools helped make bargain hunting all the easier. These are lessons consumers will not soon unlearn, according to a new eMarketer report, “Cheapskates Online: How the 'New Normal' Takes Advantage of New Technology.”
While print coupons still rule the day, digital coupons have caught on as a mainstream activity. eMarketer estimates that 96.6 million US adults will be digital coupon users by the end of this year, with the figure expected to top 100 million in 2014.
Smartphones have introduced a strong mobile element into consumers’ usage of coupons. eMarketer estimates that the number of US adult smartphone users who also use mobile coupons will jump from 31 million at the end of 2012 to 40.8 million at the end of 2013.

Monday, April 29, 2013

Most companies spend less than 5% of marketing budgets on conversion optimization

A majority of companies (53%) spend less than 5% of their total marketing budgets on optimization activities, despite the fact that a small uplift in conversion rates can translate into millions of dollars of extra revenue.
The findings come from a new survey by Adobe which also found that companies spending more on optimization are reaping the benefits.
The Adobe 2013 Digital Marketing Optimization Survey, with analysis carried out by Econsultancy, received global responses from more than 1,800 digital marketers across North America, Europe and Asia.
It explores the key areas in which digital marketers need to excel to ensure success, including mobile, social, personalisation and customer experience.
In a recent blog post we asked whether 2013 would be the year of conversion optimization due to the potential benefits from just a small uplift in conversion rates, however based on the level of investment revealed in the report it would seem that we are yet to reach that tipping point.
As mentioned, just over half of respondents spend less than 5% of their total marketing budgets on optimization activities, including agency fees, professional services and technology.
In total, 86% of companies surveyed allocate 15% or less of their marketing budget to optimization activities, while at the other end of the scale only 3% of respondents allocate more than half of their marketing budget to optimization efforts.
What percentage of your total marketing budget is allocated to optimization activities (including agency fees, professional services, technology)?
With so little money being invested in optimization efforts it’s no wonder that more than a third (35%) of respondents reported a conversion rate of less than 1%.
But the data also shows that companies spending more on optimization are reaping the benefits, with those investing more than 25% of marketing budgets in this area being twice as likely to enjoy higher conversion rates.
Only 16% of those who allocate up to 25% of their marketing budget for optimisation enjoy average website conversion rates of 5% and above, compared to 39% of those who allocate more than a quarter of marketing budget to this area.
Average website conversion rates and proportion of marketing budgets allocated to optimization:


PepsiCo India expands cola portfolio; launches Pepsi Atom

Beverages and snacks major PepsiCo India on Thursday expanded its cola portfolio with the launch of 'Pepsi Atom' and has roped in Bollywood actor Sushant Singh Rajput as its brand ambassador.
Pepsi Atom is the second mainstream cola from PepsiCo India portfolio, after the company's flagship brand, Pepsi, PepsiCo India said in a statement.
"Created for the Indian market, in collaboration with PepsiCo's global innovation team, it is a result of extensive flavour development and consumer testing in the country," it added.
Pepsi Atom is available across the country in various packaging including a 250 ml can at an introductory price of Rs 15 and a 500 ml PET bottle at Rs 25, the company said.
This will be followed by a massive sampling and engagement exercise with over 1 million consumers across key centres, it added.

Sunday, April 28, 2013

55% of mobile search conversions happen within an hour

When consumers search for things on their mobiles more than half usually intend to buy it, according to new research from Google and Nielsen.
The Mobile Search Moments report looks at why and when people use smartphones to search, the actions that result from these searches and how marketers can capitalise on every moment of the process.
Participants in the study were asked to log their mobile searches over a two week period in Q4 2012, which resulted in more than 6,000 mobile searches being recorded, and then follow-ups were conducted by Nielsen to see what actions resulted from these searches. 
There are many interesting findings from the report but perhaps the biggest takeaway is that more than half of the searches that resulted in a conversion - whether this was going into a store, calling a business or making a purchase - happened in just 1 hour, showing that mobile is possibly the most critical channel for search marketers and business owners. 

Saturday, April 27, 2013

Smartphone paid search CPCs were 46% cheaper than desktop in Q1

Smartphone CPCs in the US are 46% cheaper than desktop at $0.30 and $0.56 respectively,according to Q1 data from Kenshoo.

In comparison, tablet CPCs are just 18% lower than desktop at $0.46.

This highlights the fact that it is still relatively cheap for businesses to target customers through mobile search campaigns, an opportunity that many brands are failing to take advantage of.

Unsurprisingly though, the Kenshoo report shows that desktop still accounts for the vast majority of US search spend (86.1%) and clicks (81.2%), though smartphone and tablet clicks are proportionately higher than the amount of budget currently allocated to them.

Q1 2013 US search advertising clicks and spend by device

46% of consumer goods marketers use mobile ads for brand awareness

Consumer goods advertisers primarily use mobile advertising for brand awareness rather than driving site traffic or increased footfall in-store, according to new research from Millennial Media.

Almost half (46%) of consumer goods advertisers stated that their main campaign goal was brand awareness compared to an overall average of 14% among all industries.

Site traffic (29%) and ‘sustained in-market presence’ (11%) were the second and third most-common campaign goals for consumer goods companies, while just 5% aimed to increase foot traffic.

Are you getting personal with your customers?

ontent is king. This phrase might have been around a long time, but it’s still applicable to marketing. Of course, nowadays it’s only truly valid if the content is personalised.
Otherwise, the message just won’t get through to your audience.
As technology progresses and new digital channels are adopted, targeting becomes more sophisticated, which makes personalisation even more critical.
In fact, according to Econsultancy's recent Quarterly Digital Intelligence Briefing, 52% of digital marketers agree that personalising content is crucial for online strategy.
Q: To what extent do you agree with the following statements? 
Personally, I think this is 48% less than it should be, especially as studies show that personalised marketing campaigns are consistently more successful than static and BAU advertising content.

Why bother to personalise content?

In the past, you might have seen online adverts that were so irrelevant that you wouldn’t have given them a second glance, labelling them all as irritating and intrusive.
However, if content is displayed in an unusual and interactive way, or is directly relevant, consumers are far more likely to engage with it, especially if they can personalise it themselves.
Marketers are beginning to realise the importance of unique content, so more companies are creating innovative ways of allowing customers to personalise and interact with site content.
Sky has created a widget that allows their customers to choose a personalised ‘Sky bundle’ with automatically updating prices.
Once the customer has made their choices, they are sent straight to the shopping basket on Sky’s ecommerce site, which is pre-populated with their personalised package.
Sky widget1Sky widget 2
The M&S virtual makeover counter is another great example of content personalisation. This platform lets customers upload their photo and virtually test make-up products, making it easier for them to find the right shade of foundation, lipstick, eye shadow etc. for their skin tone.
M&S Virtual Makeover Counter

Spontaneous personalisation

Content delivery, particularly timing, is also crucial and the effect of real-time personalisation was seen recently when the power went out during the American Super Bowl.
Making the most of the situation, several brands released adverts that were inspired by the blackout. Oreo tweeted a simple picture of their famous biscuit with the caption ‘you can still dunk in the dark’ but it received almost 16,000 retweets.
Perhaps this advert was planned, perhaps it wasn’t. Either way, the timing was key to its success and companies should be aware that a clever response to a sudden event can lead to increased product awareness and customer interaction.


Friday, April 26, 2013

How Kellogg's uses Facebook, Twitter, Pinterest and Google+

For the latest instalment in our series of posts looking at how brands use the four main social networks I have decided to turn the spotlight on Kellogg’s.
The breakfast brand has a massive range of products that appear to be well suited to social marketing, so one would probably assume that they have established a strong presence across Facebook, Twitter, Pinterest and Google+.
As you’ll see though, that assumption is almost entirely incorrect.

94% of businesses say personalisation is critical to their success

Business Sign X
The growing importance of delivering a personalised experience online is highlighted in a new Econsultancy and Monetate survey in which 94% of businesses stated that personalisation ‘is critical to current and future success.’

Furthermore, the research found that for two-thirds (66%) of client-side respondents both improved business performance and customer experience are the main drivers for personalising the website experience.

The Realities of Online Personalisation is based on a survey of more than 1,100 digital and ecommerce professionals working for brands and agencies, carried out in February 2013.

Six benefits of combining digital data with traditional CRM to enhance the customer experience

Putting the customer at the heart of your organisation’s strategy has long been the elixir to business success. It seems obvious, doesn’t it, especially as we’ve had CRM systems in place for more than 10 years now?
However, at a recent event in London hosted by Celerity, data & CRM specialists, big players sat around the table and agreed it was still an aspiration and ever elusive goal for many.
It was recognised that CRM systems that combined digital, mobile and social data alongside traditional touch-points were outstripping those that didn’t.
Names such as Domino’s Pizza, Starbucks and first direct were obvious brands to cite that have cracked the customer service game thanks to their combined approach.
The John Lewis Partnership was heralded as delivering best practice in joining up online and offline data to deliver value-added customer service.

Thursday, April 25, 2013

Starbucks Hopes to Grow Loyalty Program with Expansion to the Grocery Aisle

Members of Starbucks Loyalty Program will be happy to hear that the popular coffee brand is expanding the program to include packaged coffee purchases found in the grocery aisle.
Customers will be able to put their packaged coffee purchases toward their My Starbucks Rewards™, which will allow them to use points for food and beverages at any Starbucks location. Later this fall, other products found in the grocery aisle such as Frappuccinos will also be included in the program.
According to Adam Brotman, chief digital officer at Starbucks, this program is the world’s first “cross-channel multibrand loyalty program.”
The program will require Starbucks Loyalty Program members to do most of the work. A special peel off sticker with a code will be placed on grocery store packaging. Shoppers will have to peel off the sticker and enter the code into their account.
Currently the Starbucks Loyalty Program has about 6 million members. With this expansion, though, the brand is expecting the program to grow to around 9 million members by the end of the fiscal 2013.
If Starbucks’ multibrand loyalty program is successful it may only be a matter of time before other companies with multiple brands follow in their footsteps in hopes to increase their loyalty program membership.