Thursday, October 31, 2013

CPG Brands Target Direct-to-Consumer Sales

Digital buyers shop brand sites for exclusive offerings

CPG brands are focusing on direct-to-consumer (DTC) channels as they build out more robust digital services. When CGT and Wipro polled CPG executives in North America in July 2013, they found that 39% believed direct-to-consumer channels were driving the most digital revenues for their companies.
But whether consumers buy directly from brands or from online retailers is often a question of loyalty vs. logistics. Nearly three-quarters of digital buyers that responded to a July 2013 etailing solutions survey said they would shop on a brand site over an online retailer like Amazon because it offers exclusive products. About two-thirds also said they’d shop brand sites for both refill programs and a better assortment of brand-specific products.

Location Data Pumps Up Mobile Performance

Spending grows rapidly on geotargeted mobile ads

As mobile budgets swell, brands are eager to find ways to make their ads contextually relevant to consumers. As a result, the use of geotargeted mobile display advertising is on the rise, as are campaign results, according to a new eMarketer report, “The Effectiveness of Geotargeted Mobile Ads: Location Data Pumps Up Performance.”

However, not all geotargeted ads are created equal. For example, geotargeting at Facebook—the largest recipient of mobile display ad dollars, eMarketer estimates—enables advertisers to target ads at the country, state, city and ZIP code levels. Twitter’s geotargeting parameters are similarly broad. Yet some mobile ad networks and premium publishers enable brands to zero in on users within a specified radius of GPS coordinates. And other location-based apps and services allow advertisers to target ads to mobile users indoors, such as within a retail store or car dealership.
The more exact the targeting, the more limited the inventory. But not all brands are competing for GPS-level inventory, as some have found ads targeted to larger geographic areas meet objectives best.

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Beverage Marketers Look to Engage Around the Aisle

As the market for beverages continues to fragment and brand extensions grow, brands are jockeying for position on store shelves and competing for consumers’ attention in social media, according to a new eMarketer report, “CPG Focus—Beverages: Emerging Mobile and Social Strategies.”
Brands put a lot of effort into awareness campaigns to influence buyers’ purchase decisions. But consumers’ focus can only be maintained so long if a better opportunity presents itself in the form of a discount or other purchase incentive. After all the hard work creating awareness about a product, how likely are brands to lose out to a competitor because of a few cents?

Wednesday, October 30, 2013

Programmatic Ad Spend Set to Soar

The automatization of ad buying continued to ramp up this year, as programmatic ad buying continued to draw increased spending. That’s according to an October 2013 report from MAGNA GLOBAL, which estimated that worldwide programmatic ad spending would hit $12 billion this year, with the US accounting for $7.5 billion of that.
MAGNA GLOBAL also projected that worldwide programmatic ad spending would leap to $32.6 billion by 2017, with spending in the US increasing to $16.9 billion.

FMCG accounted for 21.3% share of ad spend in the first half of 2013

Image representing Nielsen Online as depicted ...
FMCG accounted for almost a quarter (21.3 per cent) of ad spend in the first half of 2013, with the entertainment sector accounting for 13 per cent of spend, research from Nielsen has found.
The dominance of FMCG was bolstered by a 5.7 per cent year-over-year increase in ad budgets in the sector, while entertainment fell 1.2 per cent.
“We see spending across media types that own more market share becoming more conservative than previous quarters and ad spend budgets on emerging ad platforms increasing their budgets more and more,” said Randall Beard, global head of advertiser solutions for Nielsen.
“We’re also seeing some big-spending advertisers like those in the auto and financial categories reducing their spending in the face of slower than expected economic growth. The balance between advertisers within some sectors, media types and regions cutting back, while others' budgets increase produced a relatively flat growth pattern of 2.8 per cent globally.”
The industries and services sector saw a 7.2 per cent increase in ad budgets, as the industry’s ad spend sat at 11.3 per cent share of the total ad spend. The automotive sector saw a 3.1 per cent drop in its advertising budgets, but accounted for 9.2 per cent of the spend in H1.

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Brands Shift Ad Dollars to Online Video

The growth of online video advertising over the past few years has been tremendous. Users are increasingly going online to access content previously only available to them through cable or broadcast television, leading advertisers to chase those eyeballs on the web.

An October 2013 survey from and Digiday polled digital and marketing professionals to get a bead on the state of the video ad industry. They found that online advertising budgets were most often growing at the expense of TV broadcast budgets, according to brands. In fact, 31% of brands that responded were planning to shift their advertising budgets away from broadcast television and into online video, while 30% planned to take money away from display advertising for online video. That represents a significant change since 2012, when brands were pulling dollars from display or print, but less so from television budgets.

Tuesday, October 29, 2013

Smartphones Spur Multiscreen Usage

Consumers the world over are integrating multiple media devices into their daily routines—often simultaneously—and those in Mexico are no different.
According to July 2013 UM (formerly Universal McCann) data, the most common dual activity did not involve two screens, but simply using a mobile phone while traveling out and about. More than half of respondents also said they listened to the radio while using a mobile phone, the No. 2 simultaneous activity and the No. 1 truly multiscreen activity performed.

Phones were also the most common device used simultaneously with television viewing, followed by laptops and netbooks, while desktops were almost equally favored when internet users listened to the radio (24.6%) or watched TV (23.8%). Tablets, which have not yet reached a 5% penetration of the population, were less likely to be mentioned as a multiscreening device.

Firms Face Challenges in Digital Transformation

Technology—at least in the abstract—holds a great deal of promise for companies: greater efficiency and even new ways of conducting business. But the flip side is the need for both resource investment and near-constant upkeep to yield results.

The MIT Sloan Management Review and Capgemini Consulting conducted a survey of executives and managers in a variety of industries worldwide to gauge their feelings on technology as it related to their businesses. They found that companies faced a variety of challenges in adopting new digital technologies.
Fifty-three percent of respondents said the top cultural barrier to digital transformation was competing priorities. An almost equal number of respondents, 52%, said they were stymied by a lack of familiarity with digital technologies. Four in 10 named resistance to new approaches as a barrier. Internal politics and aversion to risk were seen as less prominent obstacles to digital transformation.

Is Twitter Better Than Facebook for Targeting Teens?

Social media usage is maturing, and as more networks emerge and gain popularity, advertisers and marketers are constantly on the lookout for the “next big thing.” One of the most common ways marketers identify up-and-coming social networks is by looking to a highly social demographic—and one that is highly digital-savvy: teens.
A September 2013 study from Piper Jaffray suggests that the social network landscape is shifting. The firm queried 8,650 US teens with an average age of 16.2 years, and found that for the first time, social network users in this age group said that Twitter was the “most important” social network to them.

Monday, October 28, 2013

FMCG majors high on ad spends amid slowdown

Fast-moving consumer goods (FMCG) companies, a safe haven through most of the slowdown, have felt consumption blues of late. While the annual revenues of these companies have increased 15-20 per cent, their advertisement and sales promotions spends have risen 25-30 a year.

ITC, one of the biggest companies in the Indian FMCG space, spent Rs 806.65 crore on advertising in 2012-13, against Rs 682.69 crore in 2011-12. At Rs 502.37 crore, Dabur India’s ad spends jumped 27 per cent in 2012-13.

In 2012-13, Hindustan Unilever spent Rs 3,231.88 crore on advertising and promotional activities, compared with Rs 2,634.79 crore the previous financial year, a rise of 22.66 per cent. During the same period, city-based FMCG company Emami’s spends rose 21.18 per cent to Rs 253.11 crore.

Sunday, October 27, 2013

Internet display ad spend up 27% globally

Global on internet display marketing increased by 26.6% in the first half of 2013 according to a study by Nielsen.

Asia Pacific and Latin America contributed heavily to this growth, with increases of 43% and 38.5%, respectively.

In comparison, TV advertising grew by 4.2% and accounted for 58% of total adspend, while newspaper adspend fell by 2%.

Saturday, October 26, 2013

Position of online ad has largest impact on viewer completion

A study by Akamai Technologies has found that the position of an online ad has the single largest impact on completion rate, with a mid-roll ad 18.1% more likely to be completed than the same ad as a pre-roll, and pre-rolls 14.3% more likely to be completed than the same ad as a post-roll.

Repeat visitors to a site have higher completion rates for ads on that site than one-time visitors to that site.
Viewers are more tolerant of video ads than of slow-loading videos. Viewers who must wait 10 seconds for their video to load are three times more likely to abandon than users who spend the same amount time watching a pre-roll ad.

The study analysed in aggregate 367 million videos and 257 million ads from over 3,000 publishers that were viewed by 65 million unique users worldwide.

Apps, email and search are among top mobile priorities for businesses

When asked which mobile channels they plan on using during the next 12 months just over half of businesses (55%) said apps, followed by mobile advertising (51%), optimised emails (50%) and tablet-specific sites (50%).

Mobile search and commerce were also cited by precisely half (50%) of client-side respondents.

The data comes from the new Econsultancy Mobile Marketing and Commerce Report, published in partnership with BuyDesire.

What mobile channels and technologies do you plan on using during the next 12 months?

Connected retail: the future of the high street

The speed with which new technologies are being adopted by consumers is breathtaking. The use of tablets and mobile is unprecedented.

New customer touch points have burst onto the scene, leaving retailers struggling to decide where to prioritise their marketing and digital spend: should the focus be on websites, stores or mobile?
Connected Retail has the potential to revolutionise the industry and transform how retailers operate and how they connect with consumers. It has enormous capacity to improve operations, streamline processes and lead to greater efficiencies. 

Friday, October 25, 2013

Triggered email open rates are four times higher than newsletters

Data from ExpertSender shows that the average open rate for triggered emails was consistently around 45% to 55% for the year to date, some four times higher compared to email newsletters which averaged around 10%.

In regard to clicks the results aren't quite as clear-cut. The data shows that the average click rate achieved by triggered emails was around 4% to 5%, while the CTR from newsletters ranged from 2% to 3.4%.