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Online marketers who work on retargeting have seen the pattern. From 95 to 98 percent of online visitors search for something but the search never converts into a purchase. They leave the site without buying. For marketers, this leaves much to speculation and assumptions that can then lead to wasted time and investments in ineffective marketing programs.

Its a key element  of e-commerce marketing. One of the more common ways online marketers attempt to solve this problem is to “retarget,” which is to track those consumers and reconnect with them at some later point by showing display ads when they browse other websites. You’ve probably noticed this when you’ve used Google search to find something like a pair of shoes, and then later when you’re reading separate a news site, you’re exposed to a number of display ads centered on that very thing you were searching for earlier.

But once that marketer gets your attention, what can they do to increase the likelihood that you will make a purchase? That question is at the center of a new study that reveals what may be the best approach to increase conversion rates.

The research study to be published in the April edition of the INFORMS journal Marketing Science is titled Consumer Search and Purchase: An Empirical Investigation of Retargeting Based on Consumer Online Behaviors. It is authored by researchers from The Warton School at the University of Pennsylvania, Washington University in St. Louis, the University of California, and Fudan University in Shanghai, China.

Retargeting

To conduct their research, the study authors analyzed consumer behaviors in response to two distinct marketing strategies. In one approach, they sent out coupons via those retargeted display ads. The coupons would be redeemed upon purchase. In the other approach, the study authors used those display ads to provide seller recommendations that centered on a specific product offering customized to the user, but with no coupon or discount.

We have found that while both strategies help increase the conversion rate, the seller recommendations were more effective than coupons,” said the authors.  “This told us that providing consumers with the sellers’ information that is most relevant to them may be a more effective way to tap the power of retargeting.

To conduct their research, the study authors tapped empirical data from Taobao.com, which is owned by Alibaba and is the largest online retail platform in China. Like other major e-commerce platforms, it collects consumer browsing history and can reach consumers through direct messaging on the platform, either through the website or its mobile app.  The researchers built a consumer search model to establish the relationship between consumer preference and search behaviors. They studied the behavior of 104,189 consumers who searched for a specific product among 20 sellers.

Search Intensity Impacts Retargeting Efficiency

We noticed some predictable patterns,” said the study authors. “Consumers who had a higher search intensity for a specific product were more likely to actually make a purchase. Search intensity was measured in the volume of clicks tied to the same search or search term. What we found was that even where the consumer clicked on multiple possible products, it was the first link they clicked on that had the highest potential of generating a sale. In other words, after a more intense search, the consumer is more likely to go back to that initial seller once a decision to make a purchase is made.

Consumers who had a higher search intensity for a specific product were more likely to actually make a purchase….even where the consumer clicked on multiple possible products, it was the first link they clicked on that had the highest potential of generating a sale.

In addition to the two basic retargeting strategies – discounting or customization – the authors proposed to use the auction as a pricing mechanism to implement the policies. The auction pricing mechanism requires the seller to self-select. This means the seller selects certain criteria for its ideal customer for a specific product at a specific price-point and then bids on how much it will pay to reach that consumer.

“Through our research, we were also able to show that a pricing mechanism, such as an auction, also tends to improve the effectiveness of a retargeting program,” said the authors. “When Taobao used a pricing mechanism such as an auction, the company was able to improve the efficiency of its retargeting campaigns.”

When Taobao used a pricing mechanism such as an auction, the company was able to improve the efficiency of its retargeting campaigns.

How to best measure the success of PR campaigns from branding to ultimate sales performance is often cited as a key challenge for brand marketers in the Portada network. Though measuring this success is no sorcery, a recent IBA primary research study revealed that nearly half of B2B marketing managers struggled to determine contribution levels from PR and marketing agencies within the overall business. Here Jamie Kightley, Head of Client Services, IBA International, outlines the three insightful PR metrics needed to easily track PR campaign success. 

Metrics from PR campaigns can be evaluated in many ways, including website hits, SEO benefit, coverage breakdowns and messaging pull through. But despite the numerous methods for PR pros to tackle measurement, totaling up media engagements which, put simply, means a conversation or email with a journalist, is the closest some PR agencies come to metrics – with some even charging for this service!

High levels of this ‘media engagement’ –– is a high priority for some PR agencies, but this does not make it any easier for the C-suite or marketing managers to gauge PR performance. IBA research discovered that 41% of marketing managers felt their public relations agency focused too much on media engagements instead of concrete content placement metrics. And disappointingly, over a third also reported that their placements often occurred in the same small selection of media, demonstrating that some PR agencies rely of familiar media contacts for placements rather than their content.

IBA research discovered that 41% of marketing managers felt their public relations agency focused too much on media engagements instead of concrete content placement metrics.

Media engagement and timesheet reports are no substitute for cold hard media placements — so how can organizations successfully measure their PR output? Three simple metrics can provide an insight into PR campaign performance:

1.  A rundown on coverage – accumulation and analysis

Quarterly or half-yearly reporting should give agencies and their marketing managers a sizeable sample to gauge campaign performance, velocity and momentum – showing which content formats have performed well, and where.

The value of the information is only as good as the data collected and data entry must ensure that all coverage is logged and coded correctly – noting type of deliverable – release, positioning article, thought leadership, case study, feature, interview and so on – and how it was displayed by the publishing media outlet, and the format it was published on such as, e.g. online platform, digital issue/hardcopy or newsletter.

Effective data analysis makes trends more visible

Once the numbers are collected, trends should become more apparent through data analysis. For a campaign featuring a split of articles, press releases and interview outreach, organizations can then look at the results and consider whether the coverage formats match the levels of activity.

For example, a high volume of news coverage vs. bylined placements may indicate an organization has not reached ‘thought leadership’ status within their target industries. Or, on the other hand, a lack of news coverage may signal a rethink in press release strategies.

Measure PR

Data analysis will reveal the shortfall of newswires

If using newswires, this data-led approach can allow for a separation between wire-drive syndications and quality coverage which has been picked up, read and posted by a physical journalist. The ability to gauge newswire expenditure also opens up the opportunity for businesses to reduce this service and focus on pitching.

Remember to check message reach

Remember, businesses must keep in mind that 34% of marketing managers feel their public relations agency is ineffectual as they place content in the same small selection of media. But reaching a variety of publications with a PR campaign is just as important. A review of target media must be a priority and one that is continuously reviewed.

For businesses that use UVPM (Unique Visitors Per Month) to determine campaign reach, an analysis of their overall coverage will indicate campaign impressions.

Handle UVPMs with care

But organizations should chase high UPVM figures with caution and not at the cost of targeted campaigns – they are chasing B2B decision makers and potential buyers, not a vast consumer audience.

2. Valuable comms messages – with a spotlight on geographic and topic breakdown

While the previous section discusses analysis by format and asset origination, all coverage should also be coded by message and, for international campaigns, by geography. By drilling deeper, marketing managers can start to understand more about how their campaigns and messages are resonating outside their own four walls. After 6-12 months, PR coverage can give B2B marketing departments an accurate reflection of which campaigns and messages are performing well and most significantly, where.

Data enables you to fine tune B2B messaging for the markets

These metrics can then shape strategies going forward, to ensure topics of most interest to the media are corresponding with the company marketing messages of the B2B organization. Those messages may need to be prioritized, modernized or revisited accordingly.

Coverage reporting may show certain topics are more developed in particular geographies, or even industries, and marketing strategies can be easily tailored going forward to ensure the most relevant messages are delivered to the most receptive audiences.

3. Inbound benefits can drive traffic for B2B organizations

Outside of the marketing department, business leaders themselves will want to know the value they are deriving from their PR investment and here PR’s inbound benefits can be measured. Media outlets are progressively making the online move, paving the way for B2B organizations to boost their digital lead generation.

Media outlets have websites with extremely high-ranking domains, both in terms of their UVPM (Unique Visitors per Month) and search result prominence, therefore a targeted PR campaign generating high coverage volumes in influential media outlets will ensure a B2B organization, their messages, and keywords, are featured prominently in authoritative third-party domains. Ultimately, potential customers seeking specific software or industry issues are more likely to find a B2B organization with a consistent and active media strategy.

Placing company generated copy can optimize backlinks

On an even more direct level, by drafting the content they submit to influential media outlets, B2B marketers have substantial control over the backlinks they include. Press releases can contain relevant product page links and bylined content can incorporate links back to specific areas of the company website – research, white papers, blogs and more. Click through can be tracked through marketing platforms such as Hubspot or Marketo, or simply through UTM-codes and Google Analytics.

Make an impression using dynamic PR metrics

Informative PR metrics start with great performance. This is where a constant flow of coverage can unlock opportunities for PR to exhibit how far it has come regarding direct impact on sales and marketing.

According to data presented by Finaria, global search advertising revenues, the largest segment of the digital ads industry, rose by 6.7% year-over-year to US $152.6bn in 2020. The trend is set to continue in 2021, with the entire market reaching US $171.6bn value, US $19bn more than a year ago.

The year 2020 was a challenging year for the entire digital advertising industry, with even the largest players like Google witnessing significant revenue drops amid the COVID-19 crisis.

However, as millions of consumers shifted from brick-and-mortar stores to webshops, the entire market bounced back by the end of the year showing strong growth across all regions.

Mobile Search Ad Revenues to Jump by 16% YoY to US $86B

Thousands of companies, especially the big ones, have been hit hard by supply chain disruptions and customer challenges caused by the pandemic. To cope, many of them stopped their digital ad campaigns and reduced search advertising bids in the first half of 2020. As a result, cost per acquisition (CPA) and cost per click (CPC) were down across verticals and markets.

The shutdown in the travel industry, which spent most of its advertising budget on search ads before the COVID-19, caused another major hit.

Global Search Ad

Global Search Ad

In 2019, brands and media buyers spent US $142.9bn on search engine advertising worldwide, more than social media, video, and banner ads combined, revealed Statista Digital Market Outlook. In 2020, this figure jumped by almost US $10bn, despite the sharp fall in ad spending in the first two quarters of the year.

Brands and media buyers spent US $142.9bn on search advertising worldwide, more than social media, video, and banner ads combined.

Statistics show the global search advertising revenues are expected to jump by 12.4% in 2021. The increasing trend is set to continue in the next few years, with search ad revenues reaching US $211.4bn by 2025.

Mobile search engine advertising revenues are forecast to jump by 16% and hit US $86bn this year. By 2025, this segment of the search advertising market is expected to hit a US $120.2bn value.

Ad spending in the desktop search advertising segment is forecast to witness modest growth in the next few years, with the figure rising from US $85.5bn in 2021 to US $91.1bn in 2025.

Search Engine Advertising: The United States to Generate 40% of Global  Revenues

Analyzed by geography, the United States represents the world’s leading search advertising market, expected to hit US $67.74bn value in 2021, or almost 40% of total spending this year. Statistics show the US search ad revenues jumped by nearly 20% amid the COVID-19 crisis. By 2025, the entire market is expected to hit US $82.2bn value.

As the second-largest market globally, search ad spending in China is expected to grow by 11.3% YoY to US $37.4bn in 2020. The United Kingdom follows with a 14% year-over-year growth and US $12.3bn in ad spending.

Japan and Germany ranked as the fourth and fifth-largest markets globally, with US $6.7bn and US $5.1bn in search ad revenues, respectively.

Statistics show the combined ad spending in the five largest markets is expected to jump by 22% YoY and hit US $157.2bn value by 2025.

Javier Meza, SVP Marketing for Latin America, the Coca-Cola Company tells Portada how the beverage giant is pivoting to a more direct-to-consumer oriented strategy through owned media platforms, digital retail partnerships and more…

Javier Meza, SVP Marketing for Latin America, the Coca-Cola Company, is an Ecuadorean executive, who recently took over the reigns of Latin American marketing at Coca Cola out of Atlanta, Georgia, although, as he says, “he lives on the plane.” 

These are times of change,  also for the Coca Cola Company as the company recently announced a reorganization in nine operating units, Latin America being one of them, in order to streamline the organization and better enable the Coca-Cola system to pursue its “Beverages for Life” strategy. These newly created operating units focus on regional and local execution that will work closely with five marketing category leadership teams that span the globe to rapidly scale ideas. According to Meza, this is  a new way of working “with more emphasis on global coordination.”

Coca-Cola Marketing in Latin America: Direct-to-Consumer

Javier Meza, SVP Marketing for Latin America, the Coca-Cola Company
Javier Meza, SVP Marketing for Latin America, the Coca-Cola Company

Direct-to-consumer relationships have become crucial for The Coca-Cola Company in order to ensure its brands are “within a click’s reach of desire” as online shopping continues to surge due to COVID-19. “We are  doing a lot in that realm,” Meza notes.  “Covid-19  has accelerated our conviction in direct-to-consumer investments,”  he adds. As one example, he mentions CocaCola en tu Hogar, a direct-to-consumer platform that lets consumers order beverages and groceries for home delivery available in Mexico, Chile, Colombia, Central America and other parts of Spanish-speaking Latin America.  A launch of the platform in the Brazilian market is also planned.

Covid-19  has accelerated our conviction in direct-to-consumer investments.

Another element of Coca Cola’s e-commerce strategy is Wabi, in the words of James Quincey, Chairman & Chief Executive Officer of The Coca Cola Company, “a  multi-platform venture available in 23 cities across five continentsthat connects Coca Cola’s system and other consumer-products companies to store owners and end consumers through an ecosystem of digital apps.”

The Coca-Cola Company is also partnering with multi-vertical company Rappi as well as with other Latin American e-commerce players like native third party marketplaces Amazon and Mercado Libre as well as working with brick and mortar retailers who have a substantial e-commerce presence.

Coca Cola is pivoting its marketing and advertising from a more traditional approach to one that incorporates e-commerce marketing elements. “We are shifting toward a more performance/transaction oriented marketing approach with click to purchase as a key objective,” Meza notes.

Social Selling and Expansion in Owned Media

Overall, the number of CPG and beverage companies, selling directly on Instagram and other social media properties has increased substantially over the last year. According to Meza, Instagram selling is particularly interesting when it comes to offering new products and product innovations. “Generally, Instagram can help to drive awareness and click-trough rates tend to be higher for innovative products,” he claims.

The increase in Direct-to-consumer efforts and the need to acquire first-party data is also guiding The Coca-Cola Company’s expansion into owned and operated media platforms.  “The need to obtain more first party data is definitely one key aspects of our marketing going forward. Our answer to that is to create our owned media platforms like  Coke Studio globally and “Coca Cola en tu Hogar” in Latin America.  This priority is also guiding Coca-Cola’s Marketing Technologies investments. “Owned media platforms will help us achieve scale and more efficiency,” Meza says. “Owned Media Platforms and Customer development platforms (CDPs) will help us capture, maintain and leverage data”, he concludes.

 

Read about Coca Cola Latin America’s recent advertising campaign  in today’s Sales Leads Latam.

 

MarTech Investments in 2021 and beyond. The share of brands who choose the Customer Experience  MarTech category as their main area of investment over the next 18 months grew by more than 150% compared to our 2020 survey.

Portada Insights Report: What Brand Marketers Need from MarTech in 2021 and Beyond!

Our Portada Insights report “What Brand Marketers Need from MarTech in 2021 and Beyond” includes the aggregated results of brand marketers preferences in MarTech investment categories over the next 18 months. Results are broken down by the 5 Top MarTech investment categories and geographically (U.S and Latin America). Additionally, results for the top two categories  (Advertising & Promotion and Customer Experience) are broken down.

200 brand marketers in the Portada network throughout the Americas were polled. The survey took place in December 2020 and January 2021.

The 20 page report also includes qualitative statements of  brand marketers interviewed by Portada as well as advice and best practices from a select group of marketing service providers on how to best leverage marketing technologies.
Below are the key results of the report:

  • The share of brands who chose the Customer Experience  MarTech category as their main area of investment over the next 18 months grew by more than 150% compared to our 2020 survey. This increase is related to the acceleration of digitization and e-commerce propelled by the COVID-19 pandemic.
  • Regionally, the increase of the expected investment in MarTech related to Customer Experience is more pronounced in Latin America compared to the U.S.
  • Advertising & Promotion continues to be the leading category in the U.S. and is the second one in Latin America. The advent of Internet privacy regulations has increased the need of brands to invest in technologies that foster first-party data capture-maintenance and analysis as well as in technologies that are viable in a cookieless world including contextual targeting.

DOWNLOAD the 20 page report!

 

The global predictive analytics market size is anticipated to reach US $23.9 billion by 2025, according to a report by Millionin$ights. It is anticipated to register a 23.2% CAGR during the forecasted period, 2019 to 2025. The growth reflects an exponential increase in the generation of data coupled with rising awareness about its usage for implementing marketing strategies.

With the rise of Big Data and Artificial Intelligence, marketers have more powerful technology and analytics tools at their disposal than ever before. Data-backed customer insights can be used to enhance marketing efforts at every stage of the funnel, and one of the most effective tactics is using predictive analytics.

Predictive Analytics in Marketing

According to IBM, over 2.5 quintillion bytes of data are created every single day providing raw data that can be used to obtain data-backed customer insights.  As stated in an article written by Jennifer Xue for Single Grain, there are eight uses of predictive analytics in marketing:
-Detailed Lead Scoring
-Lead Segmentation for Campaign Nurturing
-Targeted Content Distribution
-Lifetime Value Prediction
-Churn Rate Prediction
-Upselling and Cross-Selling Readiness
-Understanding Product Fit

Large enterprises held a major share across the global predictive analytics market due to the surging usage of these solutions for the prediction of future trends according to the availability of historical data. While the small & medium enterprises segment registered the highest CAGR on account of the rising adoption of technologies like cloud and predictive analytics by several SMEs.

The deployment segment of on-premise dominated the global market in 2018 on account of the rising concerns about cloud infrastructure like privacy, storage, and data security. On the other hand, the segment of cloud deployment is projected to register the fastest CAGR in the upcoming years owing to its features like enhanced resource utilization, and cost-effectiveness.

North America dominated the global market in 2018 due to rising technological advancements and surging presence of key players across the U.S. While, the Asia Pacific is projected to witness the highest growth during the forecasted period, 2019 to 2025 on account of increasing deployment of such solutions among several services and solution providers.

The market for predictive analytics includes key players such as IBM Corporation; Microsoft Corporation; SAP ERP; Oracle Corporation; and Tableau Software, Inc. These players have started adopting inorganic and organic marketing strategies like collaborations, mergers, acquisitions, partnerships to widen their product portfolio and reach.

Further key findings from the report :

  • The large enterprises segment dominated the global market in 2018.
  • The segment of cloud deployment is projected to register the highest CAGR during the forecasted years, 2019 to 2025.
  • North America dominated the global predictive analytics market in 2018.
  • The key players in this market are IBM Corporation; Microsoft Corporation; SAP ERP; Oracle Corporation; and Tableau Software, Inc.

More information here.

 

MMA Global introduced an analysis showing that outcome-based marketing plans can outperform traditional reach-based marketing plans by more than 50% on return on ad spend (ROAS).

 

The growth strategy, Outcome-Based Marketing 2.0 (OBM2), represents a major step forward in validating how marketing organizations can achieve profitable growth by targeting more responsive audiences.

The OBM2 strategy enables brands to align budgets, channel allocation, and audience targeting directly with ROAS tied to those consumers who are more likely to respond to and be impacted by a brand’s advertising.

MMA found that a marketing campaign organized around the most responsive target audience for a brand — dubbed the “movable middles” — will yield far better outcomes than traditional media plans optimized for reach. Movable middles are defined by having a mid-range probability of buying an advertised brand; they are proven mathematically to have five times the responsiveness to that brand’s advertising and are unique to each brand. While they overlap somewhat with heavy buyers, they also include medium, light, and non-buyers. This helps marketers not only achieve good returns, but also expose their brand to a larger group of receptive consumers for long-term growth.

Outcome-Based Marketing
Joel Rubinson, the former Chief Research Officer for the Advertising Research Foundation

Joel Rubinson, the former Chief Research Officer for the Advertising Research Foundation, conceptualized the methodology behind OBM2 strategy (in part based on work conducted two years ago) on MMA’s behalf. Rubinson worked in conjunction with global information services and technology company Neustar to leverage their agent-based simulation models that incorporate media consumption and purchase behavior data from their targeting platform. These models uncover the individual consumer-level activities and market-level factors that are predictive of purchase intent with a high degree of accuracy. This approach helped find non-buyers with similar purchase probabilities and predicts where and how to target these important audiences.

“We are incredibly grateful to Neustar for working with us by providing their team’s amazing support and advanced innovative modeling techniques to predict media consumption and purchase behavior across 100% of U.S. households. This capability was invaluable to proving Outcome-Based Marketing 2.0’s value,” said Greg Stuart, MMA CEO. “MMA has been on a decade-long pursuit of a more disciplined understanding and implementation of ‘modern marketing’ for CMOs responsible for higher levels of business growth and profitability for their businesses. This new strategy is one more leap forward to achieve this as well as to raise the stature and gravitas of marketing as a whole.”

In a proof-of-concept study, MMA and Neustar deployed agent-based simulation methodology to target the movable middles on behalf of a brand of frozen pizza in the U.S. market. The analysis proved:

  • An Outcome-Based Marketing 2.0 plan optimized to target the movable middles outperforms a traditional reach plan by more than 50% on ROAS
  • Targeting the movable middles helps marketers increase marketing outcomes across the board versus traditional reach-based approaches, including attracting more non-buyers, increasing total consumer reach, and increasing buyer-penetration across light, medium, and heavy buying groups
  • Movable middles can be predicted with 99% accuracy for each brand, regardless of industry vertical.
Outcome-Based Marketing
Norman de Greve, CMO, CVS Health, and Chair of MMA’s North American Board

“The MMA always tackles the toughest marketing challenges, particularly when it comes to data and marketing optimization. Empirical evidence and analytics validate OBM2 as the most effective approach to improving return on advertising spend.” said Norman de Greve, CMO, CVS Health, and Chair of MMA’s North American Board.

The MMA always tackles the toughest marketing challenges, particularly when it comes to data and marketing optimization. Empirical evidence and analytics validate OBM2 as the most effective approach to improving ROAS.

“We want to ensure the brands we sell in our stores have the best chance of being considered for purchase — and MMA’s work is a welcome addition to any brand’s planning toolkit to help deliver results in an efficient and effective way,” noted Kay Vizon, Director of Media Services for Kroger. “I support this advancement in planning and applaud the MMA for their ongoing push to uncover ground-breaking and data-driven approaches to further brand growth.”

“We cracked the code on ad responsiveness when we realized that using a beta distribution to model consumer probabilities of purchase was the connection between ad responsiveness and targeting,” added Rubinson. “We are, in essence, arbitraging the opportunity to push harder on the groups of consumers that will predictably buy more of a product when exposed to advertising.”

Outcome-Based Marketing
Marc Vermut, Vice President, Marketing Solutions at Neustar

“This research uncovers why audience targeting recommendations based on ROAS and purchase probability work,” said Marc Vermut, Vice President, Marketing Solutions at Neustar. “It found that a marketing campaign organized around those ‘movable middles’ — the most responsive target audience for a brand — will yield far better outcomes than standard media plans optimized for reach.”

Marketing campaign organized around those ‘movable middles’ will yield far better outcomes than standard media plans optimized for reach.

Additional categories, including detergents, nutrition bars, and margarine, will be run through the same analysis in the coming months. The MMA has raised funds and expects to validate this planning approach in real-world, in-market experiments that will last a full year called “Brand as Performance.”

Noted marketing academics, including University of Oxford’s Dr. Felipe Thomaz and Dr. Andrew Stephen, as well as UCLA Graduate School of Management’s Dr. Dominique “Mike” Hanssens, have conducted a review of the methodology used in creating this new growth strategy and support MMA and Neustar’s model. Both universities are developing other complementary assessments and research that validate the findings. Meanwhile, a white paper on OBM2 can be found here.

 

 

Cookies in digital marketing have played a huge role. while digital consumption has accelerated throughout the past 12 months, the rules of advertising online are changing. As tech firms and regulators herald the end of the cookie in 2021, here are initial steps for marketers to take, to ensure their advertising is still reaping the measurable benefits of digital marketing, but with cookies no longer at their disposal.  By Remi Cackel, Chief Data Officer, Teads.

1 – Be prepared to face the challenge of no cookies in digital Marketing

Because there is no doubt this is a challenge. Digital marketing has used cookies as a base for years now, so continuing to be effective requires change. A change in approach, a change in teams and partners and scope. But with the right preparation, success will come. Make sure your parameters are clearly defined; how are you defining your market? Where do you view your brands sitting within those markets and how will you measure success going forward? Be sure that you’re analyzing and reviewing your current audience targeting needs, splitting it by top categories, such as demographics, interest, intent, etc.

2 – Reshape your first-party data strategy

Whether in terms of data collection or utilization, most of clients’ first-party data is largely cookie-dependent and will shrink. Despite this expected volume reduction it, paradoxically, becomes even more strategic to focus your time in using it, but in a different way. There are two key points to consider:

  1. Use your data beyond standard targeting.

You have to think beyond the utilisation of your data for direct messaging/lookalike modelling. Review in priority how your data can be used in two key uses-cases:

(i) To support cookieless planning and decision-making

The data you have about your consumers should become the cornerstone of your cookieless transformation.

For example using it to analyse which contexts over-index for your most valuable customers. Knowing the type of content your clients are reading in each market, and for each brand, will help you define your initial contextual targeting strategy.

(ii) To support measurement needs

Measuring performance and effectiveness does not need to be done across 100% of the campaign delivery, only on a statistically representative percentage.

Ensure you are using your 1st-party data to power media effectiveness measurement as much as possible (e.g: capturing online/offline signals of visits from your properties).

  1. Introduce sustainable identity resolution and privacy compliance

Review all your data collection and utilization channels to assess how you can map your users against login/persistent identifiers to future-proof its utilization.

When publishers introduce a significant volume of unique IDs on the open-web, you want to already be in the position of being ready to use it.

It’s also crucial to make sure you’re allowing proper data privacy management for users (user consent, right to access/delete, etc). This should be addressed not just from a regulatory perspective, but also to make sure you are engaging your consumers in the right way.

3 – Future proof your audience targeting capabilities 

We need to be realistic about what will replace the cookie. Despite many claims from across adland, there will be no one-size-fits-all solution. Different approaches will need to be properly understood, tested and combined in order to maintain the same levels of ad effectiveness.

Be sure to keep track of, and test, the most up-to-date industry initiatives. The most current ones are outlined here:

  1. Privacy Sandbox: Get ready for the first tests which will probably happen during H1 2021, find out more here
  2. Real-time profiling: Using insights and relevant (cookieless) signals as a proxy of an audience (e.g: context, device models, etc.)
  3. Publishers’ first-party data: Make a list of publishers who have relevant/suitable data for your main/core audiences. This approach has as many opportunities as it has limitations, be sure to be aware of both before fully committing to this path.
  4. Unique ID: Understand that it’s mostly about using a login and that you should not spend time in A/B testing different solutions. Publishers are progressively integrating more login solutions. Make sure to monitor the scale and begin testing as soon as it becomes actionable (in the mid to long-term)

4 – Discover the power of content

Contextual targeting is not a plan-B, it provides an equally viable media strategy that we’ve been proving with multiple brands across all markets around the world. The challenge with contextual targeting at scale is that harnessing its power isn’t understood by many. So what are the steps to take to ensure you can make the most of it? The same as all good campaigns, it needs to start with a good media plan to ensure proper actionability.

Use your first-party data, new tools, and insights to learn which contextual signals can be used, when, and how?

Next steps are using contextual information for creative personalization: How can your creatives be personalized according to the content of the page to truly amplify your message? Measure the outcomes and compare them to audience targeting, you will be pleasantly surprised with the results.

The additional layer is to A/B test different contextual targeting solutions from the marketplace. See which works best for your brands and campaigns, at the right moment.

During 2021, be ready to go even one step beyond by exploring new contextual signals at scale: Weather, time of the day, device models,…etc. are all key cookieless dimensions, allowing greater personalisation and media effectiveness.

5 – Don’t get lost on the way

As you engage in your transformation away from cookies, you will face multiple challenges. We’ve outlined some of them above, but no doubt more will appear as we move through 2021. But with the right approach, you will be in the best possible position to continue:

  1. Adopt the right mindset: There’s no need to panic, but advertising without the use of cookies has to be seriously considered and understood across the whole of your digital marketing organization.
  2. Focus your efforts: Clearly define your timelines and project scope: What will be tested, how and when? Don’t blindly test all the ad-tech proprietary solutions, focus your efforts for best results.
  3. Communicate, participate to relevant working groups and share your results: Showcase best-in-class work to the whole industry and learn other brands’ experiences and points of view. This is a challenge we all need to meet together, but cross-industry collaboration is the best way to deliver business results whilst, critically, regaining consumer trust.

Article written by Remi Cackel, Chief Data Officer, Teads

 

 

MarTech  investments are a key driver of the communications industry, both for entrepreneurs and investors.  Recently created NUMATEC comprehends more than 300 employees in 22 countries, and is led by a team of entrepreneurs who have successfully founded and exited multiple ventures, and now pool their resources and companies under one umbrella. We interviewed Giuliano Stiglitz, CEO of NUMATEC, to better understand his innovative company and learn about the MarTech (Marketing Technologies) sectors he sees the most potential for growth in. Numatec particularly seeks to grow in.


Corporate MarTech budgets will continue to grow globally. This is one of the main reasons why industry veteran Giuliano Stiglitz recently founded NUMATEC. According to Stiglitz the following four MarTech subsectors are particularly primed for growth:”First, AI-If you go beyond the fact that it is perhaps the most misused word in the industry, in its truest meaning, AI is the driving force behind automation and evolution of many of the platforms used today.” Second Stiglitz sees eCommerce as eCommerce is playing an important role “and its growth was accelerated by the pandemic and there is a growing demand for services that help eCommerce businesses succeed.” The third major growth sector for MarTech Investments is Customer Data: “Everything that has to do with capturing, understanding and harnessing the power of user specific data is key. Lots of growth here as we are just at the beginning of this trend.”. Finally, Stiglitz expects substantial growth in CTV and “generally speaking TV converting to Digital, still a lot more to go (hence lots of growth) to bring TV 100% to the ‘other side’”.

AI is the driving force behind automation and evolution of many of the platforms used today.

NUMATEC’s MarTech Investments

NUMATEC’s current portfolio of companies is focused on the growth trends described above as its subsidiary companies including Si Señor agency, Cookie Lab and The Tech Partners offer many of these services.
NUMATEC has allotted a war chest to continue its rapid expansion investing in MarTech, seeking other like-minded founders who wish to join the group and fuel growth. The main criteria for M&A will be whether companies complement the current stack, integration and over-arching strategy.
Geographically, Stiglitz sees a huge potential in Latin America: “Despite the fact that our origins are in LatAm and some of our businesses have been operating for quite some time in the region, there are still a few markets where we haven’t entered yet, notably Brazil, and we intend to cover the entire region. We are also very excited about expansion in the U.S. and Europe, where we see a huge potential for our services.”

We still see a huge potential in Latin America, where some of our business have been operating for some time.

NumatecStiglitz tells Portada that NUMATEC typically takes a majority stake of between 51% and 100% in the companies it invests in. “Sometimes we buy a stake in an existing company, sometimes we fund an entrepreneur who wants to start his or her own business and sometimes we incubate the business in-house. We provide guidance from Miami, but we incubate globally including Europe and LatAm.” Stiglitz says NUMATEC “typically is able to achieve profitability very quickly, and expects returns within a one to two-year timeframe.” NUMATEC generates revenue through its investments and the services it provides to its portfolio companies.

We typically are able to achieve profitability very quickly, and we expect returns within the first two years.

Stiglitz prefers not to limit or discourage potential partners by sharing a specific number to describe the maximum or minimum NUMATEC will invest in: “I will tell you though that we have invested as little as US $100,000  to launch a business and as much as US $1,000,000. The range is really quite broad.”

MarTech Investments: Holding Company and Investor

Giuliano Stiglitz
Giuliano Stiglitz, CEO, NUMATEC

Asked about the ultimate goal of NUMATEC (e.g. selling its portfolio companies, increase in size etc.), Stiglitz answers that he likes to say that NUMATEC has two or perhaps three souls. “On one hand, we are a holding company and an investor so our ultimate goal here is to maximize shareholders returns. We do that through acquisitions, through funding exceptional entrepreneurs and by incubating new companies in-house. We have a well-oiled and proven methodology, and we won’t stop doing that. This relentless activity has resulted in quite a diversification: by having different lines of businesses (within the digital marketing space) and by operating in such a diverse group of countries. We can clearly see some buyers interested in what we have built, but that said, we are not currently looking for buyers. We do see a lot of growth ahead for several years and we will keep our options open to other avenues, including an IPO. “We are also the perfect partner for Martech companies eager to attain more market share and accelerate their growth in the markets where we operate. We want to be seen as the market leader in channel partnerships and distribution for top-tier AdTech and Martech companies; this is one of our ultimate goals that goes hand in hand with the first one. Last but not least, we want to be seen as the ideal investor for the most talented entrepreneurs in our industry. By helping a new generation of founders achieve success, we’ll be able to achieve our goal and we’ ll have accomplished something meaningful in the process.”

We want to be seen as the market leader in channel partnerships and distribution for top-tier AdTech and MarTech companies.

Providing Brands with a Wide Array of Marketing Services

By undertaking MarTech investments, NUMATEC intends to build the world’s premier network of service providers for today’s global brands. Stiglitz emphasizes that NUMATEC’S objective is to provide brands (corporations) a wide array of marketing services through different NUMATEC portfolio companies. “Our objective is two-fold: the first, strategically investing in technology enabled service companies in the Martech ecosystem, and the second, partnering with the best available technologies to accelerate growth and distribution. By doing this we will be able to provide, as a group, the most complete set of services that compete with industry leaders,” he concludes.

By Sebastian Yoffe, Managing Director – Latin America, Lotame

COVID-19 changed it all. As marketers, and as people, we know that the way consumers live has been altered at a fundamental level by the virus and the resulting economic upheaval and social distancing practices.

Before COVID-19

In the pre-COVID-19 environment, it was easy for marketers to rely on a familiar set of personas.

Of course, creating those personas took work. Using first-party data as a foundation, marketers learned the basic habits and preferences of their audience, but they still needed third-party data to fill in the gaps in their knowledge. That meant breaking down data silos, scrubbing all the data, and deriving insights to build a working model. And once that work was done, you still had to test the results to see if they worked, or fail and start all over again. Still, the process had its rewards.

People aren’t eating, shopping or exercising the way they did just a few months ago.

Before the global pandemic changed our lives in profound ways, we could make some safe assumptions about how people lived based on available first-party data. We could guess, within reason, how the preferences of a 30-something male with a suburban ZIP code might differ from those of a woman in her twenties living in the heart of a major city.  But COVID-19 changed all that. As marketers, and as people, we know that the way consumers live has been altered at a fundamental level by the virus and the resulting economic upheaval and social distancing practices. People aren’t eating, shopping or exercising the way they did just a few months ago. They’re still doing all of those things, but daily habits have changed in ways that simply aren’t going to be captured by first-party data alone.

COVID-19 marketerSince COVID-19

Consider this simple example:

Imagine a male consumer in his mid-twenties visiting an automotive site in late 2019. He lives in a major city and his visit involves looking at a few two-door models and browsing the features. It’s behavior that would suggest he’s single, maybe in the market for a new car. When that same user logs on in June of 2020, his online behavior hasn’t changed that much. He might visit more frequently and spend more time customizing a car. He might even still be browsing two-door models but has expanded his search to SUVs and jeeps with more storage capacity. Yet his life has changed dramatically.

[…] using only first-party data there’s no way to tell that he’s probably a better target for ads […]

There’s not enough detail in the auto site’s view of this consumer to tell you that he’s now working from home, or that instead of looking to buy his first car for weekend trips, he’s now more interested in moving to the suburbs and replacing airline travel with road trips. He won’t be going overseas for a long time, but using only first-party data there’s no way to tell that he’s probably a better target for ads about a crossover model’s great gas mileage or its ability to tackle tough terrain for his trips to the mountains. Instead of the speed of a sportscar he might need in-car WiFi, roadside assistance, and the best sound system on the market.

All these changes are invisible to the OEM and its dealerships. From their perspective, he’s still a man, still the same age and living in the same location, and he’s interested in their cars.

Advertisers looking to connect with in-market car shoppers are missing out on closing this potential customer by speaking to his needs right now, rather than months ago. With the intel they have from first-party data alone, their ads are likely to fall flat, creating the kind of wasted spend that no one needs during a global recession.

Understanding a New Consumer

To understand what consumers’ lives really look like now, marketers will need to rely on third-party data. Without it, there’s no way for any digital marketer using a connected channel, to make the connection between distinct behaviors.

Data CollectThird-party data segments can reveal valuable insight for marketers. Consider the data available from third-party sources around discretionary spending. Before the pandemic, you could expect that a consumer who shopped regularly at a high-end retailer was probably in the market for work attire. Today, in a world where pajamas qualify as work clothes, someone visiting that high-end retailer might be better served with ads for outdoor wear, sleepwear, or casual clothes better suited to social distancing in the park than making a statement at the office.

These changes aren’t easily captured unless you have the data to build a complete picture of the customer.

Likewise, someone searching for a minivan might be planning a road trip for a COVID-safe summer vacation rather than to take the kids to futbol practice. These changes aren’t easily captured unless you have the data to build a complete picture of the customer. Reaching these audiences in ways that are relevant and respectful of how their lives have changed can have a big impact. But in all these cases, third-party data is the key to unlocking the right insights.

Surviving in a Changing World

COVID-19 marketers
Sebastian Yoffe, Managing Director – Latin America, Lotame

We’re in a critical moment. Many businesses are fighting not just for relevance but for survival. In this fiercely competitive new world, having a clear view of who your customers are and how they’ve changed in the last few months can mean the difference between surviving and thriving. To succeed in the rapidly changing environment, marketers need to make connections between data points and signals that first-party data alone can’t provide. For advertisers and publishers alike, third-party data closes the loop.

To succeed in the rapidly changing environment, marketers need to make connections between data points and signals that first-party data alone can’t provide.

Personally, I never could have anticipated the ways that my personal and professional life has changed in the last few months. While there’s definitely been disruption, it’s also been an opportunity to learn. Right now we’re focused on making changes that will help us cope with the new environment, but for us to connect with customers now and in the future, the digital ecosystem needs to improve. For advertisers, publishers, and consumers alike that represents a huge opportunity.

Are you using data to get a clear view of your customers? I would love to learn about your data strategy; please send me a note directly: syoffe@lotame.com

We spoke to Sebastian Yoffe, Managing Director, Latin America at Lotame on how his company’s data enrichment solutions can help brands and publishers deepen their connections to prospects, particularly in the current COVID-19 environment.

Register to the Sept. 2 Webinar Cultura y Tradiciones Succesful U.S. Hispanic Digital Advertising Starts Here!

The new Background…and Why First Party Data is not Enough

According to Yoffe, “the world is changing and so are consumers. The last few months have accelerated the shift to digital as consumers rely more on delivery or contact-free pickup of goods and services. All of our habits and routines have changed as well. First-party data while valuable to understanding customers was never enough for marketers. That has been made even clearer now. It’s imperative that the industry embrace other forms of data to get to know customers and meet them where they are — in tone, message, and modality. That comes from truly understanding how they work their worlds and what’s important to them now versus a few months ago. In addition, we have always championed a connected ecosystem and only by bringing all industry players together will we grow and deliver meaningful experiences to customers. ” Sebastian Yoffe - Lotame


Check out:
 A connected digital advertising ecosystem benefits everyone.  (By Adam Solomon, Chief Growth Officer, Lotame)

 

Third Party Cookies Not Turned Off Yet by Google

Yoffe, photo left, who is at the helm of Lotame in Latin America, notes that it is important to understand that Google with its 78% Chrome market share globally has not turned third -party cookies off yet. “This is the world we live in today. Hundreds of millions of dollars are being transacted in an ecosystem where Chrome is the dominant player. If you’re not working within the current ecosystem’s parameters, how are you even advancing advertiser needs and interests on more than half of the Internet? Third-party cookies won’t be going away until 2022 so until that time, the company’s new suite of data enrichment solutions known as Lotame Panorama will use third-party cookies when they are available but they aren’t required. We’re also heavily involved in Google’s work to remove cookies but again, until then, we are fully functional in today’s environment.”

If you’re not working within the current ecosystem’s parameters, how are you even advancing advertiser needs and interests on more than three-quarters of the Internet?

Data Enrichment Solutions Company: Ready for a Future Without Third-Party Cookies

Consumers’ digital lives have only grown more complex. With billions of data points from diverse sources, brands and publishers need a long-term cure to intelligently find and connect these resources rather than a series of band-aids. Lotame‘s ID Graph technology known as Cartographer plays a crucial role in helping marketers and pu8blishers find and connect with their audiences in meaningful and respectful ways, with or without cookies.

Lotame Cartographer‘s graph technology  connecting web IDs across first-party cookies and local storage. “We use local storage because Safari expires first-party cookies after a single day whereas local storage lasts for 7 days. In addition, our graph connects web IDs to mobile ad IDs and OTT IDs,” Yoffe asserts.

Cartographer connects web IDs, browsers and devices at the people-level, giving global brands and publishers access to every visitor to their site, regardless of browser, as well as through mobile app, TV and offline. It creates a master graph of graphs, mapping connections between, among and within people, the places they visit and their interests, with the thread of consumer consent. Cartographer plots, clusters and shares diverse data connections across 90+ platform partners to find more of a brand or publisher’s audience than anyone could find alone, creating increased or “true” scale. In doing so, the universe of people it can see and cluster reaches 1.4 billion unique consumers across 4 billion active IDs globally.

Yoffe explains that Lotame Cartographer makes secure and trusted connections at three key levels – ID, individual and household – using machine learning and deterministic and probabilistic techniques.

Creating Addressable Audiences

A key benefit of the appropiate use of marketing technologies is that they should be able to draw actionable conclusions that support better decision-making, optimize campaigns, and reveal opportunities and gaps. Lotame Panorama provides the rich data, tools and technology for marketers and agencies to create addressable audiences.

Yoffe shared that marketers do a tremendous amount of research and gathering of data across siloed resources in order to develop audience targets for granola bars, for example. They might want women between 18-25 who are interested in health and shop at these specific stores. They may even have multiple personas to sell that one candy bar. The challenge in digital advertising is finding that carefully crafted audience and engaging them with your marketing message.  Yoffe notes that he “first helps marketers create these audiences by consolidating the world’s largest resource of high quality second- and third-party data. We make this data accessible via Lotame Panorama to marketers and agencies to look at overlaps and indices, to interpret the data, to understand more dimensions of a customer than ever before. Marketers and agencies then create audience segments from these assembled qualities, behaviors, and interests. And, because Lotame is powered by the Cartographer ID Graph, technology, marketers gain even more knowledge about relevant attributes and behaviours tied to the individual.

These segments can then be pushed via Lotame Panorama technology to a marketer’s DSP so that they can buy against that audience. We also enable publishers to create these rich audience segments that can be bought across their properties either via direct deals or programmatically. Lotame Panorama has ready-made pre-packaged addressable audiences that marketers can buy now from 50 DSPs. Or as we said, you can create your own.”

Beyond a DMP,  A Data Enrichment Solutions Company

Data Enrichment SolutionsHistorically, Lotame was known as a DMP.  “We believe the landscape and Lotame have evolved beyond the definition of a DMP”, Yoffe notes. “Lotame positions itself as a data enrichment solutions company. These solutions help marketers, agencies and publishers in Latin America understand customers and create addressable audiences to engage consumers everywhere they are. Unlike a traditional tech stack, Lotame’s solutions are flexible, scalable and cost-effective alternative to the walled-off options. We empower marketers and agencies to buy the solutions they need, and only those that they need as opposed to the weighty and bloated martech stacks.  We see marketers eager to tap deeper into their data strategies in the region, and include within their core business strategy data.”

We empower marketers and agencies to buy the solutions they need, and only those that they need as opposed to the weighty and bloated martech stacks.

Register to the Sept. 2 Webinar Cultura y Tradiciones Succesful U.S. Hispanic Digital Advertising Starts Here!

“It’s worth noting that the need for data enrichment is more critical than ever. Due to the global pandemic, the world has changed — and consumer passions, interests and habits have changed as well. Relying on first-party data alone, marketers are missing out on those important changes in their customers’ lives and the understanding that comes with it to impact messaging, product development and more,” Yoffe asserts.

More about Lotame

Lotame is the leading provider of data enrichment solutions for global enterprises. Our connected and patented data technologies, curated second- and third-party data exchanges, and high-touch customer service makes Lotame a  trusted choice for marketers, agencies and media companies that want to build a panoramic view of their customers and activate across the cookieless web, mobile app and OTT environments. Lotame serves its global clients with offices in New York City, Columbia MD, Argentina, London, Mumbai, Singapore and Sydney. Learn more at www.lotame.com

 

 

By Sebastian Yoffe, Managing Director – Latin America, Lotame

Data Collect
By Sebastian Yoffe, Managing Director – Latin America, Lotame

Data is one of the most valuable resources businesses have. The more information you have about your customers, the better you can understand their interests, wants and needs. This enhanced understanding helps you meet and exceed your customers’ expectations and allows you to create messaging and products that appeal to them.

How do you collect this data? One of the most crucial tools for collecting — as well as organizing, analyzing and activating data — is the data management platform, or DMP. Your DMP can help facilitate all these steps and provide you with the tools you need to make the most of your data. There are various data-gathering methods you can use with the help of your DMP. We’ll explore some of the most common data collection methods below.

Primary Data Collection

The term “primary data” refers to data you collect yourself. Primary data is information obtained directly from the source. You will be the first party to use this exact set of data.

When it comes to data businesses collect about their customers, primary data is also typically first-party data. First-party data could include data you gathered from online properties and apps, data in your customer relationship management system (CRM), email marketing campaigns, offline data you collect from your customers through surveys and various other sources.

Because first-party data comes directly from your audience, you can have high confidence in its accuracy, as well as its relevance to your business. However, first-party data presents a narrow view of customers within the boundaries of a particular website or app.

Because first-party data comes directly from your audience, you can have high confidence in its accuracy, as well as its relevance to your business. However, first-party data presents a narrow view of customers within the boundaries of a particular website or app. To meet the needs of marketers who require a panoramic view of customers, you will need to enrich your first-party data with other types of data.

Second-party data has many of the same positive attributes as first-party data. It comes directly from the source, so you can be confident in its accuracy, but it also gives you insights you couldn’t get with your first-party data. Third-party data offers much more scale than any other type of data, which is its primary benefit. But third-party data can also fill in the gaps of knowledge about customer passions, interests, and behaviors.

hird-party data offers much more scale than any other type of data, which is its primary benefit.

Quantitative vs. Qualitative Data

You can divide primary data into two categories: quantitative and qualitative.

Data CollectQuantitative data comes in the form of numbers, quantities and values. It describes things in concrete and easily measurable terms. Examples include the number of customers who bought a given product, the star rating a customer gave a product and the amount of time a visitor spent on your website.

Quantitative data lends itself well to analytics. When you analyze quantitative data, you may uncover insights that can help you better understand your audience. Because this kind of data deals with numbers, it is very objective and has a reputation for reliability.

Qualitative data is descriptive, by contrast. It is less concrete and less easily measurable than quantitative data. This data may contain descriptive phrases and opinions. Examples include an online review a customer writes about a product, an answer to an open-ended survey question about what type of videos a customer likes to watch online and the conversation a customer had with a customer service representative.

Qualitative data helps explain the “why” behind the information quantitative data reveals. For this reason, it is useful for supplementing quantitative data, which will form the foundation of your data strategy.

5-Step Process to Collect Data

There are many techniques for collecting different types of quantitative data, but there’s a fundamental process you’ll typically follow, which consists of the following five steps.

1. Determine What Information You Want to Collect

First, choose what details you want to collect. Decide what topics the information will cover, who you want to collect it from and how much data you need. You may want to collect data about which type of articles are most popular on your website among visitors 18–34 years old. You might also choose to gather information about the average age of all of the customers who bought a product from your company within the last month.

2. Set a Timeframe for Data Collection

Next, you can start planning how you’ll collect your data and establish a timeframe for data collection. You may want to gather some types of data continuously. When it comes to transactional data and website visitor data, for example, you may want to set up a method for tracking that data over the long term. If you’re tracking data for a specific campaign, however, you’ll track it over a defined period. In these instances, you’ll have a schedule for when you’ll start and end your data collection.

3. Determine Your Data Collection Method

At this step, you will choose the data collection method that will make up the core of your data-gathering strategy. Consider the type of information you want to collect, the timeframe over which you’ll obtain it and other aspects you determined.

4. Collect the Data

Once you have finalized your plan, you can implement your data collection strategy and start collecting data. You can store and organize your data in your DMP. Be sure to stick to your plan and check on its progress regularly. It may be useful to create a schedule for when you will check in with how your data collection is proceeding, especially if you are collecting data continuously. Update your plan as conditions change and you get new information.

5. Analyze the Data and Implement Your Findings

Once you’ve collected all your data, it’s time to analyze it and organize your findings. The analysis phase is crucial because it turns raw data into valuable insights that you can use to enhance your marketing strategies, products and business decisions. Once you’ve uncovered the patterns and insights in your data, you can implement the findings to improve your business.

There are various methods of collecting primary, quantitative data. The right one to use depends on your goals and the type of data you’re collecting. Some of the most common types of data collection used today are: surveys, online tracking (e.g., your website or mobile app), transaction data tracking (e.g., ecommerce, in-store point-of-sale system), online marketing analytics, social media monitoring, collecting subscriptions and registration data (e.g., your email list, rewards program), and in-store traffic monitoring.

There are various methods of collecting primary, quantitative data. The right one to use depends on your goals and the type of data you’re collecting

The more relevant, high-quality data you have, the more likely you are to make good choices when it comes to marketing, sales, customer service, product development and many other areas of your business. Some specific uses of customer data include the following: improving your understanding of your audience, identifying areas for improvement, predicting future patterns, and better personalizing your content and messaging.

How are you collecting your data today? Are you using data to drive your business and connect with customers? I would love to learn about your data strategy; please send me a note directly: syoffe@lotame.com

Multicultural marketing may be officially dead (or more important than ever), but one thing is certain: smart marketers focus on culture. Three things they know and you should too…

Smart Marketers Keep Culture on the Front Burner
J. Walker Smith, Chief Knowledge Officer, Brand & Marketing, Kantar

Sometimes people have the view that with enough data you can target anyone effectively, thereby removing the need to appeal to the audience’s culture. How can we continue to recognize the importance of culture in this technology-driven age?  “Culture influences commerce.  There is a recurring tendency among business leaders to take culture for granted.  But culture is embedded in everything, and thus when culture changes everything is affected,” J. Walker Smith, Chief Knowledge Officer, Brand & Marketing at Kantar Consulting tells Portada.
“Culture is how people live.  Technology is simply a tool people use to engage with culture.  Technology is not unimportant.  It’s just not the context of life that is the root source of aspirations, expectations, and values.  That’s culture.”

 Periods of change are when culture gets noticed most, but it never goes away.  The smartest marketers keep culture on the front burner.  Lagging marketers ignore culture, so they are always behind change and new opportunities.

3 Things Brand Marketers Who Focus on Culture Know About

“Periods of change are when culture gets noticed most, but it never goes away.  The smartest marketers keep culture on the front burner.  Lagging marketers ignore culture, so they are always behind change and new opportunities, ” Kantar’s  J.Walker Smith adds.
Savvy marketers who focus on culture make sure to take into account the below three key considerations.

1. It’s Decision Science (Not Data Science)

Smart marketers who keep culture as a key priority know that ultimately data insights are there to base decisions on. That is why it is crucial that data scientists work in close coordination with brand marketing decision makers (who ultimately have the budgeting power.)

2. Marketers who Keep Culture on the Front Burner Run a Business Unit (NOT a Center of Excellence)

Data teams and cultural intelligence teams need to be embedded into the overall marketing organization. They should not act as consultants who have no real decision-making power (e.g. the Hispanic Centers of Excellence that some companies have set up are commendable initiatives but often don’t impact real marketing decision-making). The best is to integrate cultural insights into overall data analysis and marketing decision-making. For example, Curacao, a department chain store with locations in California, Nevada and Arizona which ranks among the top 100 electronics and appliance retailers in the U.S., makes sure to take  into consideration cultural insights as part of the whole marketing mix. Curacao has a team of data scientists that look at purchasing behavior and take into account culture by looking at consumers in the following way:
– Spanish-dominant
– Bilingual – Hispanic
– English-General Market

Another alternative to make sure that data insights and marketing budgets are aligned is by creating a business unit. Pepsi created a Hispanic Business unit in 2018 (a move somewhat contrary to overall U.S. marketing trends).  Esperanza Teasdale, VP & General Manager at PepsiCo’s Hispanic Business Unit, tells Portada, that her Hispanic business unit independently determines strategy , commercial tactics and, most importantly has a dedicated advertising and marketing budget. Teasdale is responsible for the overall Hispanic strategy, engagement and sales for the Hispanic business within Pepsi North America Beverages.

Smart Marketers Keep Culture on the Front Burner
Esperanza Teasdale, VP & General Manager, PepsiCo’s Hispanic Business Unit

We also have our own data team, which is responsible for analyzing the Hispanic business today. That is how we measure performance. Another part of the team analyzes consumer insights. E.g. segmentation. Their worked helped to provide a perspective of Hispanics that goes beyond years in the country and language and is more in the mindset of  the target, ” Teasdale adds.  This helped Pepsi to come up with “Es lo que quiero“, the Hispanic adaptation of the recently released tag “That’s what I like”.

Marketers in the Portada Council System voted for the topic “Why data scientists need to be culturally sensitive; A brand marketer’s perspective”  as the keynote topic for the upcoming Portada Los Angeles, April 2 conference. The topic selection highlights how important it is for brand decision makers understand the cultural implications of the data insights process.

 

3. Marketers who Focus on Culture Check Data Quality (DMP’s and DSPs)

The smartest marketers who keep culture on the front burner also know that data quality is key, particularly when it comes to cultural insights. Data management platforms (e.g. Blue Kai, LiveRamp and others) and demand side providers do not always provide solutions that capture cultural nuances. “For DSP’s and DMPs to have data on particular consumer targets, they need to identify and code them separately. Only this way you can get information/insights back,” an industry insider tells Portada. The issue is that DMP’s and DSP’s often don’t do that extra mile, because they are not paid to do it.

DMP’s and DSP’s often don’t to that extra mile, because they are not paid to do it.

We talked to Eric Tourtel, SVP of Teads Latam about the story behind the recently-announced strategic partnership with Precision, the programmatic division of Publicis Media.  We also discussed the key buzzwords and trends of the near future, and why Teads is ready to tackle them head-on with a revolutionary new tool. 

Last year, Teads closed a deal with Oracle Moat that allows buyers to select any custom billing point of viewability and transact on any viewability requirement. Portada also announced the new partnership with Precision, the programmatic area of Publicis Media, in Latam. Teads is the fast-growing platform that invented outsream video marketing. Now, they are changing the game again on their way lower into the funnel. To find out more, we caught up with Eric Tourtel, SVP of Teads Latam. Here’s all you need to know about the special nature of this partnership. Plus, learn how the company gets the ball rolling when it comes to data and AI.

 

The Importance of Having Allies: The Teads + Precision Partnership

Teads works with all the agencies. However, the partnership with Publicis’ programmatic area is unusual because it has a more significant qualitative component. “We’re going deeper, sharing more information. We have enormous amounts of first-party data and a very strong insights team,” said Eric Tourtel to introduce Portada to the story. As he explained, Teads started at the top of the funnel with good branding results after the launch of the innovative InRead video ad format. then moved to engagement and consideration, but the company has just recently started to focus more on performance.

Not only do we see who the users are, but we also see what they’re reading.

Now, Teads is able to fully audit the consumer journey. In Latam, the company has grown so much that it now reaches 90% of Mexican internet users, for example (source). “We find them within our network from 15 to 20 times per month. Imagine the gargantuan proportions of information we get,” shared Tourtel. “Not only do we see who the users are, but we also see what they’re reading. More than noting which URLs they’re visiting, we’re paying attention to the content they look for in those websites.” Consequently, sharing such information with Publicis will make for a very strategic partnership. According to Tourtel, most of the other partnerships are about price, volume, and discount.

 

Sharing the Teads Potential

“What makes this partnership special,” remarked Tourtel, “is the openness with which Teads will share its platform which most agencies aren’t aware of.” Thus, he had to organize intensive training in Miami with the directors of Precision offices all over Latin America. “We had to make sure they understood our platform’s potential,” told Eric. “We’ll have at least one training session per quarter in order to hear their feedback and adapt to their needs. This doesn’t happen at any other Demand-Side Platform.”

As Tourtel mentioned during our conversation, Teads might not be a very complex company but it is a very complete provider. It used to focus solely on video, but it has now evolved lower into the funnel to offer performance solutions. “Teads’ platform is different from DSPs in that it’s exclusively designed exclusively for Teads’ transactions,” informed Tourtel. “It’s all connected at a data level, as well as at a reach level. We are full-stack: an ad-server, SSP, exchange, buying interface…” In short, partnering up with Teads sounds like a very good idea.

We’ve grown together, that’s why collaboration flows more easily than with other players.

The other special aspect of the partnership was the story behind it. There’s a bond with Publicis that goes way back. “We have a lot of history together,” shared Eric. “I started Teads Latam six years ago and the first agency that took a leap of faith and talked big numbers with their clients for us was Starcom Miami. We’ve grown together, that’s why collaboration flows more easily than with other players,” added Tourtel.

 

Guaranteeing Viewability is no Longer Impossible

The main problem video marketers face is that nobody wants to watch video ads. They’re invasive, annoying, and get in the way between consumers and content. This is a real problem for Facebook and YouTube, but Teads got rid of the invasion factor. And so innovation played an important part in Teads’ process of coming up with a new format that was entirely different from a pre-roll.

The result was outstream video advertising, and it revolutionized video marketing. More consumers are now voluntarily watching ads. “We invented the InRead format,” said Tourtel. “It started with a video between two paragraphs. It’s not covering any content, so it’s not an intrusion, you can skip it if you don’t want to watch.”

Marc Pritchard, CEO of P&G has recently declared that his company’s ads have an average exposure time of 1.6 seconds on Facebook, compared to 13 seconds on Teads,” pointed out Tourtel. ”That’s because we display ads exclusively in profesional articles. We’re not relying on people who scroll down their feed quickly to see if something grabs their interest.”

 

How Teads Does It

We’re not relying on people who scroll down their feed quickly to see if something grabs their interest.

If you have the right format and you display it in the right place, it has to work. However, if you add to that an artificial intelligence that gathers precise data and continually learns how to classify it, that’s a winning combo. “Five years ago we built a team that created our AI,” told Tourtel. “We gave it one single question. ‘Knowing what we know about this user, what are the chances that this impression will turn into a full view?’.

In fact, technology at this point is a must. “When we started we did all of this manually, but as we grew into the third biggest digital company in Latin America this became impossible, so we created our AI.” Every time there’s a full view, Teads’ AI team looked at their whole file and then looked for similar profiles. Then, the AI gets better after each completion and is able to predict conversions more accurately. 

 

Brand Safety Can Also Be Guaranteed

Teads is proud to say that, apart from offering very high viewability rates, the company has never faced any brand safety-related issues. Teads uses Grapeshot, a well-known software that scans pages to avoid placing ads next to unwanted content that could harm the brand. “But we know Grapeshot isn’t perfect, so we added our own technology on top of that,” told Tourtel. “Our AI helps us read and classify articles. We also avoid breaking news pages because that’s where they show the horrible stuff.” Furthermore, Teads’ ads only appear on reputable publishing media, where journalists submit articles to an editorial manager for approval before they’re released. “It’s not like we’re a social network with 400 hundred people posting every minute,” he added.

Facebook owns social. Google owns search. LinkedIn owns professional relations. We intend to own media and press.

Nonetheless, explained Tourtel, the tricky part is knowing where to stop, as the definition of brand safety is a very subjective matter. “Brand safety means something different to each brand,” he mentioned. “Sometimes a brand will choose not to appear near the word death, let’s say. So you block any instances where the Word death appears, even if it’s something positive that doesn’t harm the brand at all. Imagine a story about an airplane accident with zero deaths, that’s very good news, but you have blocked the word death and thus you have reduced your reach and increased the cost.”

 

What’s Next for Teads?

Where is the company going and how will it use this potential? “Last year, we decided to regroup a bit,” answered Tourtel. “We were diversifying too much, so we went back to our core: media and newspapers. “Facebook owns social. Google owns search. LinkedIn owns professional relations. We intend to own media and press.”

While Teads has relied on acquisitions in the past, it’s now focusing more on building a strong platform that places them closer to the bottom line. “We own all our inventory and all our data,” explained Tourtel. “This gives us enormous freedom and a great ability to adapt because we’re not depending on any other companies with other priorities that could slow us down.”

AI and Reach on Target

The buzzwords going around are AI and data. Analysts and researchers are preparing for how the future of the industry is resting on those two vast words. Therefore, Teads has a new deal in the works with Nielsen that will allow them to take their innovative offering a step further. “Right now, when you sell the segment of 18-42 year-old women, you’re charging for 30-50% of reach on target,” he explained. “Everybody strives for 100%, but that’s like the holy grail. But soon we’ll be able to charge only for those 18 to 42 year-old women Nielsen confirms we’ve impacted on.”

This product will solve most of the problems we’re facing in digital every day.

Just like the InRead format solved viewability issues, Teads’ will boost performance via look-alike modeling, machine learning and massive amounts of first-party data. “We noticed that CTRs of O.01% are normal in the market while our CTRs range from 1% to 3%. We said, ‘We should sell clicks!’ and we came up with this product that will solve most of the problems we’re facing in digital every day.”

 

See a Trend? Own It

The trends are clear: according to Eric Tourtel, clients want transparency, brand safety, and social responsibility. “Brands are pressuring social media to take responsibility for the content they show, to avoid fake news and hate speech,” he pointed out. “We already have these priorities under control. Now, data will help us offer a more precise product. You’ll no longer buy what you don’t need and you won’t lose anything.” This way, the company will offer a full-funnel view of users’ purchase journeys.

 

Roberto Muñoz, Head of Loyalty Travel at Puntos Colombia manages a joint program between Colombia’s largest bank Bancolombia and Latin American retailer Grupo Éxito. Prior to his current role, he was a strategist for Aeroméxico’s loyalty program Club Premier. The brand marketing leader shares key insights about digital channels for loyalty marketing with Portada including how tech and digital channels enable companies to engage and gain new customers and keep them happy coming back.

Interview conducted by Alejandra Velazquez

Roberto Muñoz, Portada, e-mail marketing
Roberto Muñoz, Puntos Colombia @puntoscolombia

Technology plays a crucial role in enabling marketers to do a better job. In fact, 84% of executives surveyed by Accenture agree that companies are using technology to weave themselves seamlessly into how people live today. 

“Technology helps us to segment audiences. It sparks activation” Muñoz says, adding “Technology provides us the data to develop the right targeting strategies. That way, we keep captive users interested and lure in new consumers via their passion points, like travel, fashion and entertainment. The challenge is recruiting customers that actually interact with the brand, not just sign their name on a list.” But nothing matters if the information isn’t properly documented. The challenge is tracking customer data and applying it correctly in order to serve your marketing strategy. A department that manages and filters big data correctly is always a must.

But nothing matters if the information isn’t documented properly. A department that manages and filters big data correctly is always a must.

Digital Channels: E-mail Marketing is Still an Effective Tool

“Digital channels are key to bring new customers into our loyalty programs. You can target specific audiences by sending key messages. 85% of our customers say they read our news through e-mail marketing. I’ve heard many experts talk about the death of e-mail marketing, but our numbers show the contrary,” Muñoz asserts.

Segmenting information via e-mail is the only thing that ensures the client remains active in your program.

According to Muñoz, segmenting information via e-mail is the only thing that ensures the client remains active in your program. Many strategists say “leave your most valuable customers alone, you don’t want them to get bored. I think when you’re really involved with a brand, you don’t mind how often they contact you. You know you’ll get relevant content eventually.”

…Social? Not so much

“Social network strategies are too focused on massive audiences. We address and recruit a very small percentage of users on social networks. Some programs only want users to click here and then to subscribe to a given program and get an immediate benefit. However, out of all users who sign up, a tiny percentage will actually become involved. You invest a lot of money and end up with a handful of users akin to your brand. One time in Aeroméxico we set a goal to sign up one million new customers onto our base. But in the end, less than 5% of those clients were actual travelers. The rest had been “bullied into it” by the hoards of ads we’d purchased on digital.” 

You invest a lot of money and end up with a handful of users akin to your brand.

Three Ways to Get Customer Feedback

Reliable customer feedback is also an important piece of Puntos Colombia’s strategy for using digital channels for loyalty marketing. Muñoz has developed three ways to approach customers:  direct meetings, focus groups, and surveys.

“High-profile customers get invited to breakfast or lunch to offer their feedback and opinions about the program. Nothing is as valuable as having customers tell you how they feel in person. We have a very direct style of approaching customers. The director of the program may have a sit down with customers and explain what they can and can’t do about their non-conformities.”

They also have focus groups conducted through third-party researchers. Because when consumers don’t know they’re speaking directly to a brand, it helps them give unbiased feedback. Last but not least, there’s surveys. Many valuable customers take the time to respond and are often rewarded with incentives like additional points. The incentives help ensure they are interested in giving their honest opinion.

Reliable customer feedback is also an important piece of Puntos Colombia’s strategy.

Roberto Muñoz, Head of Loyalty, Travel at Puntos Colombia, will be one of the dozens of brand marketing innovators present at Portada Miami on June 4, 2020. If you are interested in participating in Portada Miami and/or in Portada’s networking and knowledge-sharing platform with brand marketers please contact us here.

AI in marketing is on the way to transforming the marketing world as we speak. It is one of the drivers of the growth of Marketing Technology 101: Everything You Need To Know (MarTech) and  offers marketers a wealth of tools for leveraging data about customers to understand their preferences and journey with your products.

More importantly, it allows brands to keep up with customers’ increasingly high standards and expectations. Customers want their interactions with brands to feel personal and relevant, and AI enables a level of targeting and tracking that any marketer should get excited about.

But distinguishing between what can be implemented now and what will be possible in the near future is important, as the field of AI is in constant evolution. Here, we break down the different ways marketers can use AI to streamline operations, deliver better customer experiences and channel data into insight.

Defining AI

 AI can be defined as a subset of computer science through which machines display “intelligence” by making predictions and decisions. AI acquires intelligence based on the analysis of data sets, a process enabled by algorithms that tell the machine how to complete tasks and interpret information.

The most basic form of this is machine learning, which uses historical data to predict future outcomes. As the machine acquires more data, it becomes better at making predictions.

AI already driving marketing budgets, data-driven insights

Recent studies reveal the important role that AI plays in driving marketing budgets and business growth strategies. Marketers clearly believe that AI is a valuable tool: 72% of marketers surveyed in a PWC study view AI as a “business advantage.” By 2021, organizations are projected to spend $57 billion on AI platforms for marketing.

AI marketing
AI in Marketing

And organizations are already seeing the results of implementing AI: 3 of 4 companies using AI have reported a boost in sales of at least 10%. 75% of organizations in another study say AI has driven customer satisfaction by at least 10%.

In terms of how CMOs are currently implementing AI, another recent survey found that many are using it for content personalization (56.5%), predictive analytics (56.5%), and targeting decisions (49.6%).  But those are just a few of the ways AI can support marketing efforts today.

AI has 8 broad applications in marketing today

Marketers are accumulating data at an astonishing pace with the intention of harnessing it into better targeting. But sometimes the mere volume of data that organizations acquire makes it difficult for them to know how to make use of it. AI is incredibly helpful in this respect, as it enables real-time analysis of large volumes of data, automate tasks, and generate insight.

1. Market intelligence and insight: With the help of algorithms, machine learning enables in-depth analysis of complex data sets from data management platforms (DPMs), data warehouses, or other repositories, connecting the dots to support marketing intelligence and forecasting in a way that humans cannot.

2. Customer profiles and personas: Through the analysis of on-site interactions, purchasing history, referral sources and geo-specific behavior, AI can help brands form a 360-view of their customers and match them with personalized content and promotions.

3.Lead generation and sales:Machine learning and predictive analytics can help marketers automate the process of generating and scoring leads. They also help brands keep customers engaged through predicting turn: through analyzing users’ engagements with brands, they can tell when someone is about to drop off. Brands can then attempt to re-engage these users with notifications and emails.

AI Marketing
AI in Marketing

4. Media buying: AI automates the laborious process of media buying and ensuring that ads are seen by relevant audiences through programmatic advertising and optimization and measurement platforms. With almost no human input, AI helps marketers analyze, manage, and measure the performance of ad campaigns.

5. Customer experience: According to Gartner, 85% of customer service inquiries will be handled via AI by the end of 2020. AI is increasingly being implemented in the customer experience space to support improved call centers and automated customer service via chat bots and digital assistants.

6. User experience: AI helps marketers optimize user experience on websites through analyzing data about single users’ behavior to personalize content, promotions, and notifications. A study from Evergage found that 33% of marketers are using AI for more personalized website experiences, and that 63% of them noted increased conversion rates, while 61% assert that customer experiences have improved.

AI Marketing
AI Marketing

7. Natural language generation and content creation: There are a variety of applications for AI in the realm of content. Using simple rules and formats, AI-enabled tools and platforms can author content such as business reports, product descriptions, stock market reports, and sports recaps without human input. Through setting the rules and formats, marketers can dictate the tone and style that the content takes.

AI-enabled content platforms can also make suggestions about what kinds of content formats and topics a brand’s target audience is likely to engage with through tracking users’ online activity.

8. Chatbots: While chatbots technically fall under customer experience, they have changed the marketing world in such a way that they deserve their own dedicated text. AI-enabled bots are successfully delivering customer service for thousands of global brands through natural language processing and machine learning.

Natural language processing allows machines to interpret the meaning of written and spoken speech and respond accordingly, all without human intervention. The machine can track the effectiveness of its responses and adapt accordingly, improving as it has more conversations.

Marketers must self-educate before selecting vendors

Marketers considering ways to implement AI in their organization have to be careful when evaluating different products and platforms. Many use the term “AI” loosely, mislabeling tools that implement data processing and analytics as “AI.”  Smart organizations can bring in experts to educate and advise them as they consider the alternatives.

Ask questions about the data sets they use and pay attention to whether they have data scientists on staff. Request a demo and confirm what deliverables and KPIs will be included in their activities.

Make sure your data is clean and high-quality

 While AI might seem like magic, it still depends on effective human inputs: namely high-quality data that it can learn from. If marketers don’t format data in a way it can be processed, or you do not have the infrastructure to process it correctly, it will not produce an “intelligent” machine.

To this end, marketers must innovate and collect more annotated data that can be tagged to train AI systems. Measuring only clicks is not going to create a rich enough data set to use for impactful AI.

Remember the human touch

AI will be able to replace humans in many, but not all, of the brand interactions customers expect. Consumers are excited about AI – an Acquia study found that 53% of consumers say they are “looking forward to artificial intelligence making interacting with brands a better experience.” At the same time, the study found that 85% percent claim that “a human touch is needed, in addition to technology, for a positive customer experience.”

Marketers should only use AI where it will enhance customer experiences, and it turns out there are plenty of situations in which people prefer to speak to a human than a machine. 75% of the respondents to the Acquia survey agreed that “the problem with automated experiences – interacting with technology instead of a real human – with brands is they are too impersonal.”

The future of AI in marketing depends on smart investments  

Implemented correctly, AI will offer us tools that make our work better, easier, and more enjoyable. Marketers will be able to focus on the strategic, creative elements of their work and leave the tedious and time-consuming tasks to a well-trained machine.

All of this, though, depends on marketers educating themselves so that they can help their organizations invest in smart solutions. As AI evolves at a rapid pace, marketers will face increasing pressure to keep up.a

Out-of-home advertising continues to grow hand-in-hand with technologies that provide the consumer with an interactive experience. OOH is expected to grow at a booming rate in the next years, with the global share of ad expenditures reaching 24% by 2021. We talked about OOH to experts Jill Brooks (Business Development Director, U.S. at Latcom), Vanessa Hartley (Associate Media Director, Outdoor Media Alliance, Hearts & Science), Michael Lieberman (Co-Ceo, Kinetic, North America) and Leonor Palao (Creative Brand & Advertising Leader). 

 

out of home advertising in Times SquareOut of home advertising is one of those things that we can’t imagine ever not being in the world. Billboards and street furniture have accompanied consumers on the go for at least a couple of centuries. Today, street furniture (like bus shelters and telephone boxes), transit advertising (placed on buses and taxis, or anything that addresses travelers and commuters, and other media comprise 34% of total outdoor revenue in the U.S. Marketing “on the go” has grown more than anyone could have expected thanks to new technology and integrations with online marketing. In 2017, out-of-home advertising attracted 6% of global ad spending, and predictions indicate it will grow a yearly 4% to reach US $33 billion by 2021.

 

The King of Traditional Media

Moreover, digital billboards and furniture, as well as other alternative formats, have accounted for the explosion of OOH while other traditional media have continued to fall. According to Magna, DOOH already accounts for 22% of revenue in some markets like the UK and the global share is predicted to grow to 24% by 2021. Therefore, it makes sense to say that OOH is “booming”, and advertisers should seriously explore the opportunities it offers and include it in their multi-channel strategy, particularly now that emerging technologies allow consumers to interact with outside advertisements in ways that we haven’t seen before.

out of home advertising expert
Leonor Palao spent 8 years at OppenheimerFunds before it got acquired by Invesco

According to the OAAA, consumers spend 70% of their time out of home. Thus, outdoor advertising is a most convenient format, as it reaches consumers wherever they are at any moment of the day. We spoke about this to Leonor Palao, a former marketer at OppenheimerFunds. She says that the reason why OOH is growing so much is perhaps that people pay attention to well-crafted messages they see outside, as opposed to the ads they see online. “Brands are overwhelming their audience with online ads,” noted Palao. “People are becoming blind to ads on their phones and on the web. There is a lot of news about cookies and privacy, and as marketers, we have to think of smarter ways to deliver our messages so they make a greater impact.”

 

How Has Out of Home Advertising Evolved in the Latest Years?

Technology has allowed outdoor marketing to become digital. Digital out of home advertising, or DOOH, maximizes creativity and location possibilities. It’s not limited to roadside ads or furniture; it can be on a screen in a gym, elevator, airport, taxi, you name it. In addition, the power of online data allows marketers to tailor DOOH campaigns according to consumers’ location, time of day, weather, or other factors.

Brands are overwhelming their audience with online ads, […] as marketers, we have to think of smarter ways to deliver our messages.
Michael Lieberman

“Certainly, over the last 10 years, the proliferation of OOH formats and the overall volume and capability set of digital screens has evolved,” shared Michael Lieberman, Co-CEO, Kinetic, North America. “I am most excited about how we have evolved our understanding of OOH’s value in the media mix. Namely, our ability to measure and derive the true impact of OOH on business objectives and ROI is what will set OOH on its next phase of growth.”

In short, OOH isn’t static anymore. As Jill Brooks explained, “today OOH advertising has evolved with new dynamic digital assets. Thus, messages are more interactive and engaging for their target audience. Additionally, today’s OOH also offers new ways to measure the ROI of each campaign.” Consequently, technology is allowing brands to create more effective efforts overall. “Technology gives us better abilities to serve up unique creative based on what we know about the people who are exposed to OOH,” pointed out Leonor Palao.

OppenheimerFunds (with partner Captivate) placed ads on elevator screens, inside buildings where target consumers worked

 

How Does OOH Connect to Online Marketing?

out of home advertising expert
Latcom’s Jill Brooks

Marketers have started to realize the possibilities of integrating digital marketing with out of home advertising. More specifically, synergies with mobile marketing favor greater engagement with brands. “Studies have shown that when someone sees a billboard they are more likely to recognize the brand and click on a mobile ad,” said Jill Brooks. “We let the target get familiar with the brand. We awaken their curiosity so that when they see it on their phone or smart device, they will want to know more.”

As brands leave other more traditional advertising media and shift their investments to an unavoidable and measurable vehicle, OOH will inevitably play a more important role.

OOH and Mobile Working as One

“Social media and OOH also have a symbiotic relationship,” added Vanessa Hartley. “When social components are integrated with OOH campaigns, reach is amplified. Congruently, OOH is the most socially shared media format.” To that effect, Michael Lieberman pointed out that incorporating OOH into a campaign boosts pretty much any other channel. “Incorporating OOH into a campaign boosts the ROI of other channels,” he declared. “With mobile already established as the first screen for most consumer behaviors (and 5G on the way), OOH will continue to prove its value in driving mobile-based business outcomes such as downloads and m-commerce, while boosting results for related mobile activities such as search, social engagement and display/video CTR.”

out of home advertising and mobile QR codeWhen discussing her example of the ads in elevator screens, Leonor Palao also mentioned the opportunity to make synergy with the building’s wifi. “We could retarget wifi users who’d seen the ad by their IP address,” she explained. “Once familiar with their location, we hit them with a higher frequency. We hoped that the consumer would get familiar with the brand and recognize the message.”

 

Is OOH for Everybody? Which Categories Can Benefit the Most?

When we asked our experts about this, we received opposed opinions. Jill Brooks believes that OOH is a good idea for all categories. “As brands leave other traditional media and shift their investments to an unavoidable and measurable vehicle, OOH will inevitably play a more important role,” she told Portada.

Michael Lieberman, on the other hand, thinks that there’s one category that gets the value out of out of home advertising more than the rest. “Through OOH, entertainment really instigates behavior change,” he said. “Entertainment brands use OOH as a way to generate engagement on social media by implementing influencer strategies. Stars post photos of their OOH campaigns on their own social channels. Thus they are amplifying the reach and effectiveness of the OOH campaign.”

Finally, Leonor Palao considers that it’s not about categories, but rather about the message you are trying to deliver. “OOH exposure is a very quick lead. It needs to be a simple message,” she commented. “OOH is an excellent channel for brands that are investing in a brand campaign. Or for brands that have a continuous message that they’re trying to build among a specific audience. Depending on the message that you want to deliver, OOH should be part of your media mix but at a high level.

 

What’s in Store for Out of Home Advertising?

According to the OAAA, Q4 2018 was the strongest quarter in 10 years for OOH. Strongest Quarter in 10 Years for OOH.  Digitization is leading the growth for total OOH, and digital OOH represented 29% of the total in 2018. Of the top 100 OOH advertisers in 2018, one-quarter were from the technology sector. Apple assumed the top position for the first time.

As the OAAA explains, the success of OOH is largely due to innovation in technology and tools (digital units, audience measurement), plus more efficient sales and marketing efforts. OOH has also been largely immune from the decline in reach and/or consumption that affects television, print, radio and even digital display media to various degrees, especially among younger audiences. Magna forecasts steady growth through 2023.

 

A summary of the most relevant consumer insight research in the U.S. and U.S. Hispanic markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop. This week, we looked at a few holiday season shopping insights and a couple more interesting research highlights.

 

  • Deloitte’s 34th annual holiday retail survey, which polled 4,410 respondents across the United States, found that the average household is planning to spend nearly $1,500 this holiday season. E-commerce sales are expected to grow by 14-18%, and 70% of smartphone users said they will use their device to make a purchase. 

 

  • RedPoint Global has announced the results of a survey that examines the opinions of over 1,000 U.S. consumers about holiday season shopping. According to the survey, nearly a third of respondents indicate that receiving irrelevant offers from brands is their primary frustration during the holidays. Brands should really pay attention to this, as 60% of survey participants said they are more likely to purchase from retailers who send them personalized content and offers.

 

  • According to Periscope By McKinsey’s “2019 Holiday Season Shopping Report”, 51% of consumers use smartphones to compare prices with competitors while in the physical store. In addition, 33% use smartphones to search for in-store discounts or coupons, and 30% leverage them to look up further product information.

 

  • According to the latest survey from Bankrate Credit Cards, six in 10 U.S. credit or debit cardholders (64%) say they have saved their card number online or in mobile apps despite safety concerns. The survey finds that more than half (56%) of U.S. adults save their credit or debit card information on a retailer or service’s website (like Amazon, Walmart or Netflix) while 32% save their credit or debit card information in a mobile payments app (like Apple Pay or Google Pay).

 

  • Research by BritePool and the USC Annenberg Center for Public Relations show that, among 1,004 U.S. adults, 87% would select a “Do Not Sell My Personal Information” option on any given website. The people most receptive to sharing were those in the 18-34 age category, only 49% of whom said they would choose “Do Not Sell.”

 

  • According to a survey by online coupon platform Shopper.com, 95% of U.S. respondents have used an online coupon at least once. One in three U.S. respondents search for a discount code almost every time they make an online purchase. Across all respondents (U.S. and U.K. consumers), 42% of women and 32% of men have helped a friend or family member find an online discount code, and 86% of all respondents feel frustrated at themselves when they miss the opportunity to make a saving on an online purchase, but one in three feel annoyed at the retailer for not making them aware of potential savings.

Check out the last report including other holiday shopping insights here

Accenture Interactive’s 2019 Consumer Pulse Survey, See People, Not Patterns, gained insight from 8,000 consumers in Canada, France, Germany, Italy, Spain, Sweden, the U.K. and the U.S. about the responsible usage of consumer data and the right strategies to avoid forcing invasive data collection methods onto reluctant users. 

Inventive vs. Invasive

It’s no secret that invasive brand promotion can be a double edge sword. On the one side, it undoubtedly increases visibility. On the other, it often makes users feel uncomfortable, annoyed or interrupted. This can greatly damage the coveted bond of trust brands strive to forge with their consumers. In fact, Accenture’s survey found that almost 69% of consumers would cut ties with a brand if data usage became too invasive. 

Glen Hartman, head of Accenture Interactive North America and global digital marketing lead, explains the need to draw a clear line between inventive and invasive. The whole point is to collect data in a responsible manner, with respect for the consumer’s preferences. In other words, by making a conversation and asking  for consent rather than, well, spying on them.

“The good news is there is a big opportunity for brands to take a thoughtful approach to data and create an impactful customer experience while doing so, building trust and an emotional connection customers crave,” says Hartman. 

There’s been a conversation going on for many years about transparency and accountability in the industry. Brands have to be open and straightforward about what they ask from customers, if only to serve them better. Accenture’s research shows a staggering 73% of consumers would gladly share information with their favorite brands as long as they’re honest about how they’ll put it to use. It’s a reassuring way of recognizing consumers’ concerns. 

Don’t be a [total] stranger

Perhaps the best way to understand their misgivings is to compare data collection to human interactions with strangers. “People expect someone they’ve never met not to recognize them and the same logic applies digitally”, explains the report. “Forward-thinking brands are finding ways to approximate how humans behave, in a humane and ethical way.”

No one would expect anyone to simply hand out information about their personal behavior to a total stranger. It’s no different for brands. “Many consumers report that brands don’t know them well enough to serve them in a way that makes them feel special”, reads the report. “When brands seem to know too much —and act on that knowledge— they can inadvertently lose consumers’ trust.” 

More than 75% of consumers say they are uncomfortable with data collection via microphone or voice assistants while 51% said invasive ads are on the rise. Nearly 30% of consumers said a brand had gotten “too personal”, and 69% of these consumers would stop doing business with a brand or reconsider their relationship because of this. Colloquially put, flatly avoid creepy tactics. 

What to do?

So, how can brands collect data in a respectful, consensual manner? Accenture Interactive recommends: 

  • Using fresh opt-in alternatives to track users, such as encouraging consumers to authenticate on websites and mobile applications;
  • Bringing ad tech contracts in-house to access more effective, transparent data collection methods; and
  • Building the data architecture of enterprise systems in a way that reflects current regulations.

This last point is crucial to observe, as regulators are increasing oversight and enforcement: Between May 2018 and January 2019, more than 140,000 complaints and queries were filed with authorities. Stay aware of privacy regulations like the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA) to ensure an optimal bilateral experience. 

What: CommerceNext has published the results of a survey of 100 e-commerce decision-makers, meant to explore similarities and differences in the priorities of traditional and digital-first DTC brands.
Why it matters: The report is meant to be a benchmark that helps marketers evaluate their priorities in terms of how to distribute budget among different technologies and objectives.

 

E-commerce is unpredictable; it forces marketers to be on the lookout for what’s coming next and reacting if only a little bit late can turn out to be fatal. In order to be more ready, decision-makers have to decide what matters more in every step of their strategy, which means having to prioritize investments and objectives. With these challenges in mind, CommerceNext conducted a survey of 100 top marketing executives in traditional and digital-first direct-to-consumer brands.

The objective was to provide a useful benchmark for online retailers to measure their priorities and decide how to distribute budget in the most convenient way. According to the results, even though both traditional and digital-first online retailers point to an increase in marketing budget, digital-first brands are spending way more while also diversifying their strategies. Below are the key insights from the study, titled How Leading Retailers and DTC Brands Are Investing in Digital.

 

Which Investments Did Work in 2018?

In order to compete, marketers need to be quick to decide which investments can help them reach their objectives. According to the study, 65% of respondents said their 2019 e-commerce marketing budget increased over the previous year, while only 10% of marketers are reducing their budget. In 2018, the top marketing investment priorities were acquisition marketing (81%), retention and loyalty marketing (43%) and promotions (32%).

When asked about the results of those investments, acquisition marketing had the highest level of satisfaction rating: 53% of respondents said acquisition marketing met expectations in 2018, and 24% said it exceeded expectations. On the contrary, 52% of respondents said unified customer data (e.g. a single view of the customer) performed below their expectations. Almost the same number had similar levels of dissatisfaction in personalization investments (51%).

Source: CommerceNext

 

What Are the Priorities of Digital-First and Traditional Retailers?

According to the report, consumers have more than doubled the amount of time they spend on DTC brands’ websites over the last two years. Even though all the companies in the study have increased their e-commerce marketing budgets, digital-first DTC brands are spending more: 78% indicated that their 2019 budget is higher than the one they had in 2018, while 60% of traditional retailers said the same.

Because DTC brands are based on data-driven decisions and customer-centric operations, they are growing and evolving at an accelerated pace. As stated in the report: “fueled by venture capital investment, these brands have focused on growth vs profitability.” Therefore, the most significant challenge for this group of brands is “achieving profitability at scale”, with “Managing tech integrations” coming in second, with 33% of DTC brands identifying it as a barrier. This is a side-by-side comparison of what each group considers to be the most significant barriers, extracted from the study:

Source: CommerceNext

How to Make the Best of the 2019 Holiday Season

According to the NRF, the 2018 holiday retail season exceeded expectations. Over 165 million Americans reportedly shopped either in stores or online from Thanksgiving Day through Cyber Monday 2018, and online purchasing, in particular, experienced a 19% increase compared to the previous year. The NRF has forecasted that 2019 retail sales will increase by 3.8% compared to 2018, and the online sales growth rate will increase between 10% to 12%.

DTC brands are increasing their budgets at a higher rate than traditional retailers and spreading that budget more evenly. For example, digital-first DTC brands are increasing their budgets equally (70%) between acquisition marketing and retention/loyalty marketing. On the other hand, traditional retailers are emphasizing acquisition marketing, with 77% of respondents increasing their acquisition budget compared to 64% of traditional retailers increasing their retention budget.

 

 

All images by CommerceNext.