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What:  Portada talked with Stanley Black & Decker’s VP Digital and Commercial Excellence  Andres Amezquita about how SB&D is using Latin America as a major market to test digital and content innovations.
Why it matters: Content commerce and SB&D’s new “omnichannel” approach to marketing in Latin America will be a featured topic at Portada Miami on April 12  Make sure to get your tickets! While offline continues to be important, Amezquita says offline plus online has “a stronger appeal.”

Andres Amezquita is proactively changing SB&D’s marketing approach in Latin America.

The global diversified industrial company that provides tools and solutions to builders and makers worldwide, is keenly away of the power of reaching consumers digitally. But that doesn’t mean abandoning the traditional offline channels of communications that have served the company so well since its founding in 1843.

While the traditional focus has been on offline communications with consumers (in-store materials, catalogues, print), SB&D is proactively changing its marketing approach in Latin America, Amezquita tells Portada.

“While we realize offline continues to be important we believe an omnichannel (offline plus online) approach has a stronger appeal.”

Content and focus on the end-user is driving SB&D’s new LATAM strategy of a combined offline and online approach.

“Our strategy is to be end-user centric. Content is a key pillar of this,” Amezquita says.

SB&D’s shift from traditional commercialization strategies to an end-user centered e-commerce approach to marketing also takes into account the exploding growth of consumers’ access to the internet via cell phones in Latin America.

“YouTube and social media, in particular Facebook, are key for our communication strategy,” Amezquita says.

Stanley Black & Decker’s Andres Amezquita will be a featured speaker at #Portadamia on April 12 when he will discuss how SB&D’s content- and user-focused digital strategy in Latin America is changing the way SB&D is reaching customers.

Portada: What are some of the ways digital tools can improve your content reach to consumers?

AA: We have to have all the fundamentals in the right place (websites, social destinations) while bringing technology to key activities like our after-sales service network.

While we realize offline continues to be important we believe an omnichannel (offline plus online) approach has a stronger appeal.

Portada: What are some of the new tools SB&D is deploying in Latin America that reflect an increased focus on the end-user, and how does ecommerce fit into this?

AA: We also realize the importance of digital tutorials and video content to upskill and help our users do more with their tools.

Portada: Why the importance of eCommerce?

AA: eCommerce is part of the ecosystem where our end user moves gathering information to make decisions and choosing the best way to buy our products.

Portada: What changes have there been in online sales for SB&D in Latin America?

AA: We have accelerated growth in this area putting a lot of focus on it. We are not only looking at pure players but actively working to develop our customers within marketplaces.

Portada: Is SB&D using machine learning as part of its overall consumer-centric, content focused online and offline strategy?

AA: Definitely.

Portada: Why and how is Miami important for Stanley Black & Decker Latin America?

AA: Close to Miami we have our Global Emerging Markets headquarters. In this division we work every day to create an exponential organization and experiment new models to grow our business. Miami is in a privileged place geographically for being close to Latin America and yet at a distance to get a bigger picture. Also it provides a daily platform to explore upcoming digital trends before they are hot within Latam.

What: Portada talked with Acuity Ads Chief Strategy Officer Seraj Bharwani about how machine learning is expanding brands’ reach to specific cultural audiences.
Why it matters: Machine learning is paving the way to a new, more effective approach for reaching specific cultural audiences and will be a featured topic at Portada Los Angeles on March 15. But digital platforms, like Google and YouTube need to do more to protect brands from inappropriate content, Bharwani says.

Seraj Bharwani has his eye on decision sciences, specifically: machine learning and computer algorithms which he says give brands powerful new tools for penetrating deeper into multi-cultural market segments than ever before.

It used to be that speaking the language of a specific ethnic market segment was all advertisers could do to put their messages before those audiences. But new technology has changed the rules of the game, Bharwani tells Portada.

“Computer algorithms that can process vast amounts of user data to assess user preferences and propensities by aggregating their social, search, shopping and viewing behavior in real-time are now being used to create what we call live personas of in-culture audience.”

Portada: Why are traditional in-language targeting tools insufficient to reach cultural audiences today?

Seraj Bharwani: There appears general consensus among sociologists, anthropologists, agency planners, and the like that defining the US Hispanic population by language is simply too limiting. This audience lives a rich life defined by their unique core family values, cuisine, music, festivals, celebrations and other characteristics more indicative of their preferences.

Another unique aspect of this audience is their rapid, scaled adoption and prolific use of digital and social media. These online behavior signals in aggregate provide robust cultural cues that allow us to reach the other two-thirds (40 million) of the US Hispanic population that is bi-cultural and bilingual with more relevant advertising.

Acuity Ads Chief Strategy Officer Seraj Bharwani will be a featured speaker atPortada Los Angeles on March 15 when he will provide insights in how machine learning tools are expanding brand marketers’ ability to reach multi-cultural audiences.

Portada: What role do decisioning technologies, i.e. Machine learning or Artificial Intelligence play in updated efforts to target specific cultural market segments in the US?

S.B.: Computer algorithms these days can process vast amounts of user data to assess user preferences by aggregating their social, search, shopping and viewing behavior in real-time, and are now being used to create what we call live-personas of in-culture audience.

By incorporating what keywords people type, who they follow, which videos and content they watch, which mobile apps they download and check into, etc., the “learning” algorithms can predict (in real-time) if a given PERSONA is sensitive to the cultural context and will respond to specific ads, products, or brands with a culturally relevant message.

Computer algorithms that can process vast amounts of user data to assess user preferences and propensities by aggregating their social, search, shopping and viewing behavior in real-time are now being used to create what we call live personas of in-culture audience.

Portada: Have the sources of consumer data changed as marketers have begun to use machine learning tools to reach specific cultural targets?

S.B.: Publishers like Facebook, Google and Amazon possess substantial consumer data individually within their respective lanes – social, search or shopping data respectively that could provide selected “In-culture” cues. What advertisers need are in-culture personas aggregated from a full spectrum of consumer behaviors across social, search, viewing, and shopping behaviors. 

Portada: Several major brands recently pulled their advertising from YouTube after it was revealed that viewers were exchanging child pornography links in the video comment sections. How can marketers better protect their brands?

 S.B.: This is not the first time we have heard of the brand safety scandal on YouTube. Advertisers need to be clear about why they are buying advertising on YouTube/Google. If an advertiser wants great audience REACH, then the environment within which the ads run may not always be brand appropriate or brand safe. As sophisticated as Google happens to be with its pattern recognition algorithms, it is unrealistic to expect the platform to police every video and comment posted on the platform. And Google isn’t about to shut down the commenting altogether like the PBS News Hour as it would severely curtail the engagement potential of the YouTube platform.

 If on the other hand advertisers want fully brand-safe and brand-appropriate environment for their ads, their best bet would be to buy access to the YouTube audience through premium publishers like Disney, Vevo, Buzzfeed, and others who have captive channels on YouTube to ensure control over the quality of the media environment. There is a good chance that advertisers would sacrifice media efficiency (premium environments command higher prices) and REACH.

What: Digital ad spending increased by 16% in the U.S., up US$3 billion, with about US$1 billion in “organic” growth from October 2014 through June 2015 (compared to the October 2013-June 2014 period). According to the report by Standard Media Index,  US$1.1 billion of national TV ad dollars, in addition to US$400 million in local TV and syndication spending; US $350 million of print ad dollars and US$150 million of radio spending, flowed to the digital bucket  from October 2014 to June 2015.
Why it matters: The report, which is based on actual advertising expenditure data,  highlights how much digital advertising, particularly online video and social advertising, is growing at the expense of, traditional media. However, it has to be cautioned that the Winter Olympics and the 2014 Soccer World Cup took place in the comparison period. Both events are very TV centric for advertisers, therefore making TV’s loss to digital larger than it would have been had these major events not taken place.

Between October 2014 and June 2015, Digital ad spending increased by 16% in the U.S., while it continues to gain market share from traditional media, according to new data from Standard Media Index (SMI) . The report is based on actual advertising expenditure figures SMI gets from media buying agencies and includes Hispanic Media.

Digital ad spending, from October through June, was up US$3 billion, with about US$1 billion in “organic” growth, comparing to that same period a year ago. That organic growth means it wasn’t at the expense of any other media segment’s budget.
According to SMI, which tracks 80% of national U.S. agency spending, the rest of digital’s growth is being powered ad dollars’ flow away from traditional media, mainly TV.

US$1.1 billion of national TV ad dollars, in addition to US$400 million in local TV and syndication spending; US $350 million of print ad dollars and US$150 million of radio spending, flowed to the digital bucket from October 2014 to June 2015.

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Digital Media’s Rapid growth

According to the report, around US$1.1 billion of national TV ad dollars,  US$400 million in local TV and syndication spending, us$350 million of print ad dollars and US$150 million of radio spending, flowed to the digital bucket from October 2014 to June 2015, compared with the year-earlier period.

In spite of this, television still accounts for the majority of marketers’ ad spending. According to SMI, from October through June, advertisers spent:

  • US$25.5 billion on national TV
  • us$6.4 billion on local and syndicated TV

While on digital they spent US$22 billion over those nine months.  Digital platforms offer more sophisticated and cost-efficient ways to target audiences. Still, were there better metrics to measure marketers return on investment, advertisers would invest even more  even more in digital ads, some observers claim.

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Digital ad spending hit $99 million in 2012, representing a 16.2% increase over the previous year and accounting for 19.5% of all global ad spending.

North America led the world in overall digital ad spending with an estimated $38.3 billion in expenditures; Asia-Pacific placed second with $30.6 billion followed by Western Europe with 24.1 billion, according to a study conducted by Group M, entitled This Year, Next Year: Interaction 2013.

The results of the study are part of a series of media and marketing forecasts drawn from data provided by WPP companies around the world, which predicted that digital ad spending in 2013 will grow to $113.5 billion globally, 14.6% more than 2012.
That figure represents more than 21% of all measured advertising investment. In the 2013 forecast, North America once again ranks first with an estimated $42.8 billion in digital ad spending, followed by Asia-Pacific with $36.8 million and Western Europe with $26.6 billion.

In the U.S., digital ad spending hit $35.4 billion in 2012, representing 23% of the overall domestic market and a 10% increase over the previous year, according to the study. This year, the figure is expected to reach $39.7 billion dollars, for an overall domestic market share of 25.4% and a 12% increase compared to 2011.

The tablet era

tabletThe Internet no longer belongs only to the old world and western Asia, nor does it depend upon the evolution of infrastructure conceived a generation or more ago, but instead reaches every continent and economically active individual.
Rob Norman, Global Chief Digital Officer of Group M, further explained the rise and impact of online video: “Tablets created an entirely new and original mechanism for media consumption in less than three years. They combine the quality of HDTV, the interactivity of the PC, and the location awareness, touch interface and app ecosystem of the mobile phone. Media is being re-imagined for the tablet and is seen as the future of the printing industry, whose decline I believe is precipitous with some very few exceptions.”

Other survey highlights

• 28 countries reported ad spending data in search and display advertising
• Data on broadband penetration, time spent on online media and e-commerce data:
• The average percentage of consumers’ time spent online rose from 21% in 2007 to a predicted 30% in 2013.
• E-commerce per user will reach $859 in 2013, a 64% increase since 2007.
• International e-commerce amounted to $917 billion in 2012, with a growth rate of 18% to a predicted $1.1 billion in 2013.
• This volume of e-commerce generates an estimated 40% of paid-ad investment reported by the media.
• Investment in print media continues to lose share, but still attracts about 24% of investment.
• In 1995, when digital advertising measurement began, print media totaled 48 percent of total ad spending.

Translated by Candice Carmel

Digital ad spending hit $99 million in 2012, representing a 16.2% increase over the previous year and accounting for 19.5% of all global ad spending.

North America led the world in overall digital ad spending with an estimated $38.3 billion in expenditures; Asia-Pacific placed second with $30.6 billion followed by Western Europe with 24.1 billion, according to a study conducted by Group M, entitled This Year, Next Year: Interaction 2013.

The results of the study are part of a series of media and marketing forecasts drawn from data provided by WPP companies around the world, which predicted that digital ad spending in 2013 will grow to $113.5 billion globally, 14.6% more than 2012.
That figure represents more than 21% of all measured advertising investment. In the 2013 forecast, North America once again ranks first with an estimated $42.8 billion in digital ad spending, followed by Asia-Pacific with $36.8 million and Western Europe with $26.6 billion.

In the U.S., digital ad spending hit $35.4 billion in 2012, representing 23% of the overall domestic market and a 10% increase over the previous year, according to the study. This year, the figure is expected to reach $39.7 billion dollars, for an overall domestic market share of 25.4% and a 12% increase compared to 2011.

The tablet era

tabletThe Internet no longer belongs only to the old world and western Asia, nor does it depend upon the evolution of infrastructure conceived a generation or more ago, but instead reaches every continent and economically active individual.
Rob Norman, Global Chief Digital Officer of Group M, further explained the rise and impact of online video: “Tablets created an entirely new and original mechanism for media consumption in less than three years. They combine the quality of HDTV, the interactivity of the PC, and the location awareness, touch interface and app ecosystem of the mobile phone. Media is being re-imagined for the tablet and is seen as the future of the printing industry, whose decline I believe is precipitous with some very few exceptions.”

Other survey highlights

•    28 countries reported ad spending data in search and display advertising
•    Data on broadband penetration, time spent on online media and e-commerce data:
•    The average percentage of consumers’ time spent online rose from 21% in 2007 to a predicted 30% in 2013.
•    E-commerce per user will reach $859 in 2013, a 64% increase since 2007.
•    International e-commerce amounted to $917 billion in 2012, with a growth rate of 18% to a predicted $1.1 billion in 2013.
•    This volume of e-commerce generates an estimated 40% of paid-ad investment reported by the media.
•    Investment in print media continues to lose share, but still attracts about 24% of investment.
•    In 1995, when digital advertising measurement began, print media totaled 48 percent of total ad spending.

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Translated by Candice Carmel