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What: We talked to Solange Curutchet, General Manager at Pulpo, about her career in content and media, the importance of content monetization, and her predictions for the future.
Why it matters: Content is becoming more and more important each day. As Curutchet explains, there should be an integrated understanding of how marketing, sales, and content are intertwined in digital in order to have an effective monetization strategy.

 

Solange Curutchet Discusses Content Monetization
Pulpo’s General Manager Solange Curutchet

Solange Curutchet forged her career learning about content monetization when digital was just starting to acquire the relevance it has today. Before becoming Pulpo’s General Manager, she cleared/ a rough path to realize how profoundly intertwined web content is with sales and marketing. Simply put, everything is connected in digital. If you see an ad somewhere, you can be sure there’s a whole machinery of reasons why it’s there.

We sat down with Curutchet to discuss the evolution of content, reaching multicultural audiences, and effective content monetization.

 

 

From Traditional to Digital Media

Content marketing isn’t only about selling ads. In 1999, when she joined Univision Interactive Media, Curutchet learned that all the bricks of the house need to be well-structured. “In these early publisher-advertiser days, we really started from zero,” shared Curutchet. “Nobody knew what creating content for digital entailed. We learned together. There wasn’t a playbook that neatly laid out these rules.” It was a process, but she learned that she needed to package content according to each advertiser’s needs without “compromising its integrity“.

“We had to offer content in a way that the advertisers could showcase their brands while not diluting an online presence”, says Curutchet. The trick was finding suitable matches for both parties, not forcing either to fit with the other. Content and ads needed to be symbiotic. “In traditional media, you had a page marked with an X where the ad would go and that’s it. Now in digital, you really need to evaluate the brand and what it’s communicating to see where it fits,” she explained. “These principles of co-existing content and advertisements are still valid today.”

The trick is finding suitable matches for both parties, not forcing either to fit with the other.

 

The Need to Understand Content Monetization

Solange says one of the most frequent mistakes when launching content verticals isputting someone in charge that has deep subject matter expertise in a particular content theme but lacks a holistic knowledge of how content + ads need to co-exist.” “If we’re going to launch content property”, pointed out Curutchet, “then you assign someone that comes from content a hundred percent, right? So what happens is that you have a significant gap between producing content and how to monetize that property. We see this happening all the time. There’s great intention to produce valuable content but there’s no clear vision on content monetization.”

 

Social Media Ties Everything Together

Social media plays an important role in closing the loop on this strategy. Today, social media plays an important role in creating the emotional connection of your brand to content, to your advertisement. It’s not either or, it’s both. Social media is a much needed emotional value component that ties everything together.

Another tricky aspect, she said, is that people tend to believe that only articles can be called “content”. In fact, digital platforms allow consumers to access and share much more than just articles. “In digital, you can participate in what you’re reading and really give your opinion.” You can weave many elements into a site to engage with the user at higher levels and increase your sponsorship opportunities. “Finance and health sites do this very well,” illustrated Solange. “They use consumers’ input to drive useful wizards, calculators and other interactive features.”

 

 

 

Pulpo: the Rebirth of a Company

Taking from these learnings and from the concept of real engagement as the true motor of marketing, Pulpo has gone through a full rebranding. The goal is to create “its own environment of verticals for advertisers to talk to our audience and share their brand”, according to Curutchet. “The idea is to create products around them. A vertical where you sell customizable inventory, influencers interacting with audiences and advertisers, and a big data strategy around it. A lot of newsletters, personalization, and sharing products from our advertisers”, to mention just a few.

Hispanic culture goes way beyond speaking Spanish or not, it’s in their veins.

 

Focus on a Cultural Dimension, Reach Their Hearts

As these strategies fall into place, what are the most important cultural nuances Pulpo will tackle with this firm set of structures? One of Pulpo’s most important findings is that it’s all about talking to consumers in their language, and that doesn’t necessarily mean Spanish. “With U.S. Hispanics it’s more a cultural thing than a question of language. [Hispanic culture] goes way beyond speaking Spanish or not, it’s in their veins. […] The priority used to be having Spanish-language sites, which is still our main focus, but not only Spanish generates engagement with U.S. Hispanics”, says Curutchet.

So, all content must be focused on reaching them at a personal, more intimate cultural dimension. And in order to create intimate content, it’s necessary to delve deep into the customer’s heart. For Pulpo, the ideal partner is the one who fosters reciprocal participation with the audiences. “It’s not the one that has the best name for Latam, it’s the one that has the best engagement for our U.S. Hispanics reach, regardless of whether it’s a small company or group”, says Curutchet. “Content will become more and more important to reach audiences. […] Getting to the audiences with the right environment, the right content and the right language is key today”.

 

How to Face the Future?

So, what should brands do, and where is the future taking us? How will the reborn Pulpo address the new ways in which audiences engage and consume? For Solange, the market is getting better at understanding all these new behaviors, but brands really need to engage with their audience in a deep, meaningful way. “Content will become more and more important to reach audiences,” she declared.

Pulpo’s strategy is not only about making informed decisions based on hard data pointing to the direction of the market. The company listens to the clues consumers have to offer and pay attention to their needs and desires. “When you touch their soul they react differently”, says Curutchet. “Reaching them is not the problem, the challenge is how you get to them. Engage them in a way that you end up touching their hearts.”

 

Time to Discuss Diversity

According to ANA Educational Foundation’s research, the marketing industry’s efforts to recruit a more diverse workforce are still not enough, as the overwhelming majority of the talent is still predominantly white. The report explores, among other factors, the documented benefits of recruiting and retaining diverse talent. Among others:  higher performance standards, better team dynamics, more organizational agility, and, better business results overall.

And it’s the same when we think about the percentage of women in leadership positions. “We tend to focus on CEO positions and are alarmed about the fact that there are only 24 Women CEO’s within 2018 Fortunes top 500 companies,” said Mebrulin Francisco, Managing Partner, Director Marketing Analytics, Multicultural at GroupM, in an article that looks more closely at this issue. “But we also need to look a couple of steps lower in the corporate ladder and address the fact that women’s progress is stalling at lower levels of a company’s pipeline.” For any woman looking to break with conventions, the numbers on equality dabble on the realm of disturbing. Not just for high-management levels but onset from the very first step of the ladder as well. And the numbers get worse when we look at the presence of Hispanic or African-American women in the talent pool.

Start from little, build your personality, and don’t be afraid to speak your mind.

 

Speak Your Mind, No Matter Who You Are

Solange knows first hand what it’s like to speak your mind “in a room with 20 people that are mainly men.” She said she was probably not the best example, as she has never been afraid of saying what she thinks. But not every girl knows that they have the right to do so. That’s why she has taught her two daughters to fight for what they believe. “One of the things is to start from a young age, build your personality and don’t be afraid to speak your mind,” she suggested. “Always do it with respect, but whatever you need to say, just say it, don’t be afraid to express it.”

Just as she encourages her daughters to speak their minds, Solange firmly believes that knowledge is more important than from whom it comes from. And this is the philosophy that she brings to work every day. If you have an opinion and you have a way of doing things better, it’s welcome. “Everyone here can share his or her ideas,” she told Portada. “Titles are not important, really. I can have people that have worked here for six years and people that started two days ago in the same meeting and we all discuss how to improve things.” In fact, she concluded, “the moment they start being afraid of expressing their opinion, that’s when we stop growing.”

 

What:  Latin American media owners’ net advertising revenues (NAR) to grow by +9.3% in 2018, to US$26.3 billion, following a +7.3% growth in 2017;  thanks to a more robust economic recovery in the region, according to MAGNA.
Why it matters: Television remains the top media category in the region with 54% of total advertising sales while Digital advertising in Latin America remains lower than the global average.

MAGNA is expecting Latin American media owners’ net advertising revenues (NAR) to grow by +9.3% in 2018, to US$26.3 billion, following a +7.3% growth in 2017, thanks to a more robust economic recovery in the region. The latest IMF update forecasts real GDP growth of +1.9% next year in the region, compared to +1.7% in 2017 and -0.9% in 2016. Economic recovery remains extremely fragile, however, and political instability continues to loom over several countries, including Brazil.

A +9% growth would not be that impressive considering the high levels of economic inflation in the region, and the growth rates experienced pre-2014 that usually range between 10 and 15%. However, that would the strongest growth rate since 2013.

Ad spend trends continue to vary by country. Digital switch-overs, the introduction of new TV channels, government reconstruction programs in natural disaster areas, and elections are all expected to impact marketing activity and advertising spending. Nevertheless, most LATAM markets are expected to see slightly higher ad spend growth in 2018 versus 2017, as economies in the region are stabilizing and benefitting from the recovery of commodity prices.

Television remains the top media category in the region with 54% of total advertising sales at the end of 2017

Television remains the top media category in the region with 54% of total advertising sales at the end of 2017, way above the global average (35%). Television is forecast to hold its media leadership until 2021, when digital finally becomes the top media format in Argentina and Brazil. Free-to-air TV is the dominant segment (+4% in 2018) controlling 80% of total TV NAR but Pay TV is experiencing faster growth (+6% in 2018) as subscription fees and programing are gradually becoming more attractive. Another driver is the change in selling models, from a cable model (where advertisers buy packaged airtime with little control over which channels their campaign appear on) to a direct sales model (where advertisers and agencies buy from individual Pay TV vendors). This is taking place in Chile and Uruguay, for example.

Television will benefit from increased viewing and brand interest around the FIFA World Cup as usual, although the excitement may not be quite as high as four years ago when the tournament was hosted by Brazil; time difference may also be an issue but the event is still guaranteed to boost TV ad sales especially in the eight nations that qualified this year: Brazil, Argentina, Uruguay, Colombia and Peru in South America, as well as Mexico, Costa Rica and Panama for Central America.

Digital advertising in Latin America remains lower than the global average, inhibited by a relatively low digital penetration and the sheer power of television. It is expected to grow by +23% to reach 32% total media share at the end of 2018, still well below the global average of 44%. Social media (+30%) and digital video (+33%) will grow significantly again next year, while search (+21%) remains the number one media type with 36% of total digital ad sales.

Brazil: +12%

With BRL 49 billion in NAR (approx. $14 billion), Brazil is the sixth largest advertising market in the world and accounts for over half of LATAM’s advertising spend.

Brazil’s economy has begun to stabilize from the recession in 2015 and 2016.  Real GDP will grow by +1.5% in 2018, accelerating mildly after the stabilization of 2017 (+0.7%) and the severe recession of 2016 (-3.6%), while Consumer Price Index (CPI) inflation has dropped from its peak of 9% in 2015 to just 4% expected in 2018. Media cost inflation, on the other hand, remains high (between 6% and 10% across media categories). Business confidence however, continues to be hindered by political instability with unelected President Michel Temer, successor to impeached president Dilma Rousseff, himself facing various corruption scandals.  The next presidential election, scheduled for October 2018, will hopefully clarify the political environment but is not expected to directly affect advertising spend, as parties are not allowed to buy television advertising time.

In that mixed environment, MAGNA anticipate media owner NAR to grow by +11.8% in 2018 following a decent performance in 2017 (+9.7%). That will be driven by strong digital growth (+23%) coupled with robust TV ad sales: +5.4% for free-to-air channels and +9.2% for pay TV. The FIFA World Cup, which will air on Globo, SporTV, and FOX Sports, will help drive cost inflation (CPM +9%) and offset declines in viewing.

Mobile advertising is growing dramatically (+52% in 2017) and now accounts for over 55% of digital advertising expenditures in Brazil.  Internet and mobile penetration rates reached around 60% in 2017 and will continue to grow over the next five years. Google, Facebook, and YouTube dominate the search, social, and video markets, reaching of over 90% of the total internet audience.

Digital advertising in Latin America remains lower than the global average, inhibited by a relatively low digital penetration and the sheer power of television.

Mexico: +5%

Mexican media companies’ net advertising revenues will grow by +5% in 2018, to 92 billion pesos (approx. $4.9 billion). Mexico’s participation to the FIFA World Cup typically drives TV ad sales up, but that may not be enough to prevent TV NAR from decreasing (-1% to $43 billion pesos). Presidential elections are scheduled that take place in July 2018 but should not have a direct impact on TV revenues as political parties are not allowed to buy commercial air time beyond the free minutes allocated by Law.

Ad growth will be primarily driven by a +16% growth in digital ad sales (rising to a 31% market share) while print NAR will decrease by -5%, radio will increase by +5% and OOH NAR will grow by almost +8%.

The extinction of analogue terrestrial broadcasting at the beginning of 2016 disrupted television reception and introduced new digital channels competing with incumbent broadcasters Televisa and Azteca. That in turn created audience fragmentation and cost inflation (20%+) in Free TV CPMs as well as in digital video. CPM inflation has nevertheless cooled down in 2017 and will remain moderate in 2018 (+5%)

Online Video has been growing faster than any other ad format and already accounts for 32% of digital advertising, more than double its global share of 13%. Alongside Youtube, Facebook is becoming another important video advertising platform, especially in Mexico, where the social network has close to 80 million monthly active users. In addition, Mexico has one of the highest smartphone penetrations, driving mobile ad sales to grow by +22% in 2018, accounting for 64% of ad spend.

Argentina: +24%

Advertising sales in Argentina will grow by +24% in 2018 to reach 100 billion pesos (approx. $6.7 billion at a constant average 2016 exchange rate).

The economy began to stabilize in 2017, when real GDP grew by +2.5%, and 2018 is expected to see continued economic growth and gradual slowdown in the inflation rates. CPI inflation is expected to slow from 27% in 2017 to 18% in 2018, and will continue to drop over the next five years.

Nominal advertising sales growth, which peaked at 47% in 2014, when inflation was around 40% per year, will thus also stabilize over the next five years, to around 10% per year.

Television is still the largest media in Argentina, accounting for 36% of total advertising sales.  Newspapers remain relatively strong too with a market share of 19% at the end of 2017, significantly higher than regional and global averages (5% and 8% respectively); however the slow nominal growth rate (3% in 2018) means that the category is quickly losing share. TV NAR is expected to grow by 29% in 2018, driven by the FIFA World Cup and the last-minute qualification of the national squad.

Digital advertising is more developed than in the rest of Latin America. It already accounts for 32% of total advertising sales at the end of 2017, and will surpass television NAR by 2019.

Colombia: +5%

Colombia’s net advertising revenues (NAR) will grow by +5.2% in 2018 to reach COP 4.8 trillion pesos (approx. $1.6 billion). The Colombian ad market ranks 4th in the region, behind Brazil, Argentina and Mexico.

Pay TV channels control more than half of TV NAR in Colombia, due to high multichannel penetration and reach. In 2018 Pay TV ad sales will grow by +7% and account for 58% of TV ad spend, while Free TV will grow by just +3%.

Digital media advertising is still very under-developed, accounting for 16% of total ad spend. It is the fastest growing media though (+27%), growing from a small base.

Furthermore, Colombia is in the process of a digital switch-over, expected to be completed by December 31, 2019. Television signals are currently offered in Simulcast (analogue and digital), allowing for everyone to continue watching terrestrial TV, a frequency resource to accommodate analogue and digital, and a transition period to full digital.

A new free national TV network, Canal Uno, was launched in August 2017 by Plural Comunicaciones. Although Canal Uno aims to become a competitor to the commercial duopoly of RCN and Caracol, Canal Uno cannot compete yet in terms of coverage. However, as the digital switchover transition progresses, there are expectations it could reach 90% of the population by the end of 2018.

Some of Latin America’s other smaller markets will continue to experience ad spend growth.

 

What: According to “The Race for the White House 2016: Registered Voters and Media and Information During the Primaries,” a new research study from the IAB Digital media has reached parity with TV as a primary information source about presidential candidates.
Why it matters: The study also found U.S. Hispanic & African-American voters are more likely to get political news via mobile.‘Political Influentials,’on the other hand, are much more reliant on digital media than TV.

 

credit: Israel Ortega, December 11, 2015
credit: Israel Ortega, December 11, 2015

Digital media has reached parity with TV as a primary information source about presidential candidates (61% for both digital and TV) and political issues (67% for digital vs. 69% for TV) among registered U.S. voters, according to “The Race for the White House 2016: Registered Voters and Media and Information During the Primaries,” a new research study from the Interactive Advertising Bureau (IAB).

The findings demonstrate that digital is a critical medium for reaching U.S. voters during the primaries, with three-quarters of those who have seen a candidate’s online or mobile ad taking action afterwards, such as searching for more information about the candidate or starting an in-person conversation about them.

More than a third (35%) of registered voters say digital will be their most important method for getting candidate information during this election season. These U.S. voters are more likely to be younger (35% vs. 23% total), to take action after seeing an online political ad (71% vs. 53% total), stream the debates (30% vs. 20% total), and to vote in the primaries (90% vs. 85% total).

35% of registered voters say digital will be their most important method for getting candidate information during this election season.

U.S. Hispanics

credit: scpr.org
credit: scpr.org

Delving deeper into the results, the study reveals that certain demographic groups are more reliant on mobile for political news and views than others, particularly U.S. Hispanics and African-Americans. The report shows that:

  • 67 percent of Hispanic voters and 60 percent of African-American voters visit political sites on a mobile device as opposed to 49 percent of voters overall.
  • In addition, Hispanic voters are significantly more likely to take an action after viewing a digital or mobile ad for a candidate, with 87 percent of them saying they have done so.

Making the case even stronger for the importance of digital media in the current election cycle, registered voters who are more heavily involved in politics and public affairs, called “Political Influentials” in the study, are particularly dependent on digital media for their political information (78% for digital vs. 63% for TV).

social media

descargaThe report also shows that social media plays a key role in the political process, with 28 percent of registered voters saying they get information on candidates via social platforms. Other social media findings include:

  • 31% of registered voters read political articles and links shared by their friends on social media
  • 25% of registered voters have seen an ad for a candidate on social media
  • 24% of registered voters have “defriended” or “unfollowed” someone because of his or her political posts on social media platforms

“The results of the study demonstrate the vital role of digital media in the political process and substantiate that digital is on par with TV among registered voters as a key resource,” said Sherrill Mane, Senior Vice President of Research, Analytics, and Measurement, IAB. “As the election season heats up, it is abundantly clear that candidates and advocacy groups must harness the informational and relationship-building power of digital media to succeed.”

“U.S. Hispanic and African-American voters are crucial to candidates, and this research shows that mobile is the best way to reach them,” said Anna Bager, Senior Vice President and General Manager, Mobile and Video, IAB.

“The Race for the White House 2016: Registered Voters and Media and Information During the Primaries” was released during the 2016 IAB Annual Leadership Meeting at the JW Marriott Desert Springs Resort and Spa in Palm Desert, CA. To download the complete study, go toiab.com/electionstudy.

Methodology

The IAB commissioned Vision Critical to conduct this online study with 18+ U.S. registered voters in November 2015. The total sample of 1,513 is nationally representative of this registered voter population by age, gender, race, and ethnicity. Additional Hispanic registered voters were sampled to ensure statistical robustness in analyzing this important group of voters.

 

What: Media and Information company Hearst has invested US$21 million to acquire a minority stake in Complex, one of the fastest growing digital media networks.
Why it matters: Hearst, as other traditional media companiesincluding NBC (e.g. it recent purchase of stakes Vox Media and BuzzFeed)  continues to invest in fast growing digital media and streaming video companies and expand in the digital video arena.

J_kELH0x_400x400Hearst, one of the nation’s largest diversified media and information companies, has announced that it has invested US$21 million to acquire a minority stake in Complex, one of the fastest growing digital media networks.

The joint announcement was made by Hearst Entertainment & Syndication Co-President and Hearst Digital Studios President Neeraj Khemlani, Complex Founder and CEO Rich Antoniello and Complex Founder Marc Ecko.

095dfd2Khemlani (photo) will take a board seat at Complex.

Now reaching over 57 million diverse millennial males monthly across its destination and partner sites, Complex is  is now one of the top 10 publishers in the U.S. when it comes to social interaction and engagement on channels like Facebook, YouTube and Twitter.Complex currently operates a network of sites in addition to its own destination site (Complex.com) that focus on niche cultures and report on trends in pop culture, entertainment, fashion, hip-hop music, art and design, food, technology, sports and video games.

“Hearst continues to invest in fast growing digital media and streaming video companies,” Khemlani said. “The Complex team drives explosive engagement through smart, hip content that features exclusives from some of the top music and popular culture stars of our time.”

“This is an important investment for us and one we view as a crucial strategic play. As we look towards further expansion in digital and linear entertainment, Complex will have access to the extensive expertise, scale and partnerships that only a global media company like Hearst could offer,” Antoniello said. “And with Hearst, we’re poised to become the publisher that influences culture and spurs conversation among an audience that’s as influential as it is broad.”

Since Ecko Unltd. designer and entrepreneur Marc Ecko launched the print publication in 2002, Complex has expanded its business in digital, video, branded activations and emerging platforms. The company has seen a profit since 2010, as it has also excelled in providing a targeted and attractive demographic for advertisers. Over the last two years, Complex has adopted a video-first approach, seeing audience spike to 192 million monthly views, a 415 percent growth year over year. Earlier in 2015, filmmaker Spike Lee joined Complex as Board Advisor, Branded Video Projects to develop formats that could bridge both digital and linear media.

According to Khemlani, the aim behind the deal is the same one that has led Hearst to take stakes in AwesomenessTV and, via its partial ownership in TV programmer A&E, in Vice Media: digital video.

The US$21 million is “predominantly” going into Complex as a direct investment, says CEO Rich Antoniello, though some of the money will go back out to early shareholders via secondary sales. Complex has raised US$52 million to date, including a US$25 million investment from Iconix Brand Group in 2013 that valued the company at $174 million.

 

What: The 12 digital and media trends of 2014, according to Millward Brown.
Why it matters: Marketing professionals will have a better understanding of consumer’s behavior regarding the use of multiple devices and so they may adjust their advertising investment.

Viral Marketing - People on Computers

Millward Brown, a leading research agency specialized in effective advertising, strategic communications, media and research of brand equity, has disclosed 12 key digital and media trends that will shape 2014. The main  challenge for marketing professionals will be to get a better understanding of consumers’ behavior when it ocmes to the use of multiple devices.

“In 2014 we will see more marketers trying to generate screen  interactions through attractive strategies as TV commercials with hashtags,” said Duncan Southgate, Global Brand Director for Digital Media at Millward Brown.

However, the most successful marketing experts will be those who build a cohesive, clear and consistent presence in all screens and distribute advertising spending in accordance to the time audiences invest in each device.

The  “Digital and Media Predictions for 2014″ report by Millward Brown provides the following:

  1. Screen agnosticism:“Screen Agnosticism” refers to both the way consumers watch video content and the mindset marketers need to adopt when planning video campaigns. Marketers will adopt an agnostic viewpoint where the benefit of maximizing audience has primacy over optimization by channel. Meanwhile audiences will consume video content by whichever means is most convenient in a given moment. Content is king and the screen is simply the most convenient window through which to view it.
  2. Micro-video multiplies:Micro videos will continue exploding in 2014. Dominate Vine (six seconds movies), since they were the ones that popularized the format; Instagram (fifteen seconds), thanks to its large user base, and Tumblr GIFs due to rebirth of the format popularity. Most of micro video content associated with a brand will be shared virally at first, but soon the paid promotional approaches will begin to grow as they have a greater reach.
  3. The breakthrough of wearable screens:Following the increase in the purchase of tablets and smartphones, wearable technology will be the next major trend that will be seen as the norm in 2014.The health and fitness market will continue to play a key role in bringing wearable technology closer to consumers; many mobile health wearables such as Nike+ and the Fitbit tracker are already available and growing rapidly.Wearable technology will offer unique media opportunities for brands to captivate target audiences and build meaningful differentiation. The challenge will be developing a deep understanding of what consumers want from these new wearable screens so that brands can deliver something useful and relevant to their existing proposition.
  4. Multi-Screen big data connections enhance effectiveness:From a marketing effectiveness perspective, marketers need windows into the specifics of each consumer’s interactions with each screen for each brand.The technology to tie together the pieces of multiple-screen puzzle will be leveraged on a much wider scale than in the past. The central question will remain: How is that encounters with the brand are impacting sales and brand perceptions of unique and synergistic way? The ability to tie together multiple-screen interactions will gradually enhance our ability to answer this question.
  5. Multi-screen minimalism:The clarity and consistency of message across all devices and new marketing opportunities will be critical for success.Thanks to eye-tracking data of Millward Brown for digital media advertising, Which suggest that a single attractive image is enough to catch the attention and consumers focus on a range of stimuli in rapid succession. It is known that brands that adopt a minimalist approach are more likely to catch their consumer’s attention and retain it for longer.
  6. Meshing,Stacking and Shifting:Marketers will adapt their actions to the different types of multi-screen media consumption. “Meshing”, the simultaneous usage of multiple devices for related content; “Stacking”, the simultaneous usage of devices for unrelated content and “Shifting”, the sequential usage of devices for related content. These behaviors will provide new opportunities for brands to connect with people if they get to understand and sale in that stage. “
  7. Finally,traditional channel insights and multi-screen digital insights tie the knot:Marketers will finally integrate the data to understand the consumer path to purchase, across all channels and all digital devices. Businesses will have to establish systems to optimize the customer experience across all channels, which also will allow them to gain valuable insights to make decisions about advertising investment.
  8. Social TV’s promise is tightly coordinated targeting across channels and screens:Consumers are already investing more time watching television with their mobile phones and digital devices, and social media is the primary way that people are interacting with television content. Last year it became clear that social TV, for all intents and purposes, Twitter is television, Consumers are spending more time in front of the TV with digital and mobile devices, and social media is the main way people are interacting with TV content. Last year, it’s become clear that social TV, for all intents and purposes, is Twitter. So the audience can be maximized through promotional paid on this network.
  9.  Teenager who use Smartphones demand intended advertising for them:The lives of young consumers spin around smartphones. The use of mobile devices is deeply personal for this generation and most of what they live, learn and purchase will be via smartphones, even if they go on using other digital devices to do several things at the same time. Due to this, brands for young people will lead the field and will be the first to offer a multi-screen experience which flows seamlessly between all devices, in order to hold the attention and promote the consumption of brands among this audience .
  10. Video budgets continue to shift from TV to Multi-screen:As marketers improve their planning for multi-screen videos success, other changes will be seen: more video advertising that works on different screens will be created and not only the one that is optimized for television, alliances will be restructured, as long as they understand that buying time on television and digital media can no longer be divided; many multiscreen video strategies will be defined in order to optimize range.
  11. Digital outdoor rapid development:The screen, as is now known, is becoming something that is almost unrecognizable. In addition to the multi-screen strategy, the question arises: How do we market across clothing, wearable devices, and LED light-up cars?”This year we shouldn’t obsessed with the 4 screens, but think creatively in the digital outdoor landscape potential and how it is evolving to be the first to launch amazing and powerful marketing.
  12.   Success will not go to those who focus on screens alone : CrossMedia Millward Brown research shows that greater synergies arise between media with and without display, such as out of home advertising, print and especially at the point of sale.  Marketing professionals who think beyond the “screen” and implement truly integrated multichannel strategies, will be those who outstand t this year.

What: The 12 digital and media trends of 2014, according to Millward Brown.
Why it matters: Marketing professionals will have a better understanding of consumer’s behavior regarding the use of multiple devices and so they may adjust their advertising investment.

Viral Marketing - People on Computers

Millward Brown, a leading research agency specialized in effective advertising, strategic communications, media and research of brand equity, has disclosed 12 key digital and media trends that will shape 2014. The main  challenge for marketing professionals will be to get a better understanding of consumers’ behavior when it ocmes to the use of multiple devices.

“In 2014 we will see more marketers trying to generate screen  interactions through attractive strategies as TV commercials with hashtags,” said Duncan Southgate, Global Brand Director for Digital Media at Millward Brown.

However, the most successful marketing experts will be those who build a cohesive, clear and consistent presence in all screens and distribute advertising spending in accordance to the time audiences invest in each device.

The  “Digital and Media Predictions for 2014″ report by Millward Brown provides the following:

  1. Screen agnosticism:“Screen Agnosticism” refers to both the way consumers watch video content and the mindset marketers need to adopt when planning video campaigns. Marketers will adopt an agnostic viewpoint where the benefit of maximizing audience has primacy over optimization by channel. Meanwhile audiences will consume video content by whichever means is most convenient in a given moment. Content is king and the screen is simply the most convenient window through which to view it.
  2. Micro-video multiplies:Micro videos will continue exploding in 2014. Dominate Vine (six seconds movies), since they were the ones that popularized the format; Instagram (fifteen seconds), thanks to its large user base, and Tumblr GIFs due to rebirth of the format popularity. Most of micro video content associated with a brand will be shared virally at first, but soon the paid promotional approaches will begin to grow as they have a greater reach.
  3. The breakthrough of wearable screens:Following the increase in the purchase of tablets and smartphones, wearable technology will be the next major trend that will be seen as the norm in 2014.The health and fitness market will continue to play a key role in bringing wearable technology closer to consumers; many mobile health wearables such as Nike+ and the Fitbit tracker are already available and growing rapidly.Wearable technology will offer unique media opportunities for brands to captivate target audiences and build meaningful differentiation. The challenge will be developing a deep understanding of what consumers want from these new wearable screens so that brands can deliver something useful and relevant to their existing proposition.
  4. Multi-Screen big data connections enhance effectiveness:From a marketing effectiveness perspective, marketers need windows into the specifics of each consumer’s interactions with each screen for each brand.The technology to tie together the pieces of multiple-screen puzzle will be leveraged on a much wider scale than in the past. The central question will remain: How is that encounters with the brand are impacting sales and brand perceptions of unique and synergistic way? The ability to tie together multiple-screen interactions will gradually enhance our ability to answer this question.
  5. Multi-screen minimalism:The clarity and consistency of message across all devices and new marketing opportunities will be critical for success.Thanks to eye-tracking data of Millward Brown for digital media advertising, Which suggest that a single attractive image is enough to catch the attention and consumers focus on a range of stimuli in rapid succession. It is known that brands that adopt a minimalist approach are more likely to catch their consumer’s attention and retain it for longer.
  6. Meshing,Stacking and Shifting:Marketers will adapt their actions to the different types of multi-screen media consumption. “Meshing”, the simultaneous usage of multiple devices for related content; “Stacking”, the simultaneous usage of devices for unrelated content and “Shifting”, the sequential usage of devices for related content. These behaviors will provide new opportunities for brands to connect with people if they get to understand and sale in that stage. “
  7. Finally,traditional channel insights and multi-screen digital insights tie the knot:Marketers will finally integrate the data to understand the consumer path to purchase, across all channels and all digital devices. Businesses will have to establish systems to optimize the customer experience across all channels, which also will allow them to gain valuable insights to make decisions about advertising investment.
  8. Social TV’s promise is tightly coordinated targeting across channels and screens:Consumers are already investing more time watching television with their mobile phones and digital devices, and social media is the primary way that people are interacting with television content. Last year it became clear that social TV, for all intents and purposes, Twitter is television, Consumers are spending more time in front of the TV with digital and mobile devices, and social media is the main way people are interacting with TV content. Last year, it’s become clear that social TV, for all intents and purposes, is Twitter. So the audience can be maximized through promotional paid on this network.
  9.  Teenager who use Smartphones demand intended advertising for them:The lives of young consumers spin around smartphones. The use of mobile devices is deeply personal for this generation and most of what they live, learn and purchase will be via smartphones, even if they go on using other digital devices to do several things at the same time. Due to this, brands for young people will lead the field and will be the first to offer a multi-screen experience which flows seamlessly between all devices, in order to hold the attention and promote the consumption of brands among this audience .
  10. Video budgets continue to shift from TV to Multi-screen:As marketers improve their planning for multi-screen videos success, other changes will be seen: more video advertising that works on different screens will be created and not only the one that is optimized for television, alliances will be restructured, as long as they understand that buying time on television and digital media can no longer be divided; many multiscreen video strategies will be defined in order to optimize range.
  11. Digital outdoor rapid development:The screen, as is now known, is becoming something that is almost unrecognizable. In addition to the multi-screen strategy, the question arises: How do we market across clothing, wearable devices, and LED light-up cars?”This year we shouldn’t obsessed with the 4 screens, but think creatively in the digital outdoor landscape potential and how it is evolving to be the first to launch amazing and powerful marketing.
  12.   Success will not go to those who focus on screens alone : CrossMedia Millward Brown research shows that greater synergies arise between media with and without display, such as out of home advertising, print and especially at the point of sale.  Marketing professionals who think beyond the “screen” and implement truly integrated multichannel strategies, will be those who outstand t this year.

Programmatic buying of digital media is a system for placing digital advertising that is gaining ground in the U.S. and is Man finger pushing interface use of innovative technologiesjust becoming known in Latin America.
What do the experts have to say about it? What are the pros and cons of fully computerized media buying? Will it be used in Latin America?
These are some of the questions we posed to Alejandro Campos Carlés, co-director and founder of StartMeApp; Marcelo Montefiore, CEO of Global Mind; Lucio Grimaldi, VP for Latin America at Publicitas; and Juan Pablo Suárez, Business Development Senior Manager, U.S. Media Consulting.

 

What is programmatic media buying?

Programmatic buying of digital media is a computerized system for buying advertising impressions automatically using data supplied by the advertiser. Programmatic buying is based on algorithms that seek out available global inventories that match what the advertiser is looking for.

The purchase is made via Real Time Bidding (RTB), a concept rarely used in Latin America. RTB is a “digital auction” whereby the computerized platform cranks out bids for desired impressions (based on data provided by the advertiser) in available inventory that matches the advertiser’s requirements. The process is performed constantly in a matter of milliseconds, and the platform then determines which advertiser gets what impressions.

Is this form of digital media buying gaining ground in Latin America?

The automated purchasing of advertising in the region is still in its infancy and agencies, advertisers, and the media are all in the process of understanding this new system.

In fact, programmatic buying has yet to be established in all U.S. markets, although it is quickly moving forward. A study conducted by GLOBAL MAGNA predicts that by 2017 almost half of all digital media buys in the U.S. will be done via programmatic buying.

“Programmatic buying is still slow, as advertisers and agencies are not sharing much information,” said Diego Fernández, Director of Media and Digital, North America, for Burger King Corporation, during Portada’s LatAm Summit this year in Miami. “But I think in the next few years it will be very important and good to see more of the same,” he added.

“Very few agencies have come forward to ask us about programmatic buying. We have not yet seen any significant inclination towards programmatic buying when it comes to reaching audiences in Latin America and the U.S. Hispanic market,” Christopher Stanley, CEO and Founder of Alcance Media, told Portada.

For Lucio Grimaldi, VP Latin America at Publicitas, the development of programmatic buying in Latin America is currently at an early stage but with a clear eye on the future. “I think we are at an early stage, but there will be a very important development in the near future. Programmatic buying in Latin America will no doubt grow significantly in the next few years. Many clients and agencies in Europe and the U.S. began work in this area years ago and it is inevitable that the same phenomenon will occur in Latin America.”

Juan Pablo Suárez, Business Development Senior Manager at U.S. Media Consulting, pointed out that “Latin America is going through one of its best periods as an emerging region, where companies of all levels and industries are making investments and the digital world is no exception. We increasingly see new players entering the region and that is helping the concept of programmatic buying to rapidly grow and be adopted, especially in markets where the benefit is immediately apparent, such as in e-commerce. While spending levels [in LatAm] are similar to those seen in the U.S. or Europe about four years ago, the trend is pointing toward double-digit growth for a few years. However, there is still a long ways to go for Latin America to keep up with other regions of the world.”

The pros and cons of programmatic buying

While the majority of the executives interviewed by Portada agreed that programmatic buying is a good thing and needs to be implemented to achieve better ROI results, others also expressed some doubts about these new technologies, mainly about the way they measure results.

At this year’s Portada LatAm Summit, Axel Steinman of Microsoft said that new technologies do not solve the larger, more structural problem in the industry—a lack of consensus on how to use data and metrics smartly. “It would be wonderful if we could sit down as an industry and agree on something,” said Steinman during the LatAm Summit. “Many of us acquire bad impressions by doing the wrong thing and that’s a big problem,” he added. “Microsoft, which invests 50 percent of its advertising resources in digital media, is still going through a learning process.”

Marcelo Montefiore, CEO of Global Mind, also said in an interview with Portada that “measuring everything is essential,” and thinks that programmatic buying provides just that. “Metrics is what allows us to make adjustments and makes change possible.”

Experts critical of programmatic buying claim it is a complex operation that can hinder growth if the human hand is completely taken out of the process.

But for Juan Pablo Suárez of U.S. Media Consulting, human intervention will never disappear, because “defining parameters is essential for programmatic buying to work and today that is only possible with human intervention.” But at the same time, “it is possible today to have an electronic market for digital advertising where a significant percentage of available inventories are interconnected with all relevant suppliers globally. Optimization cycles go beyond what is humanly possible, both in recurrence as well as the number of variables that are taken into account when assessing what value to offer in a bid,” he added.

Grimaldi of Publicitas agrees that programmatic buying is a good thing for the industry and suggests that programmatic buying will not replace traditional media buying. “I don’t think that programmatic buying will replace traditional media buying, as each has different functions and goals, in my opinion. Traditional [media] buying always requires a human factor, while programmatic buying is primarily based on remaining inventories,” said Grimaldi.

Alejandro Campos Carlés, co-director and founder of StartMeApp, also believes that programmatic buying is a positive for the industry: “If you look at it from the perspective of the advertiser, it allows you to know the value and quality of the impression before buying it, which lets you achieve much greater [target] relevance. The impression is important because you are reaching the audience in real time. Both advertiser and audience are connecting in real time and that makes all the difference. And it does away with [the need for] targeting, behavior studies, etc.”

“Publishers can also achieve greater efficiencies, as the medium is always effectively monetized. For mobile advertising, it was understood this was something that had to be implemented from the get-go,” added Campos Carlés.

Marcelo Montefiore, CEO of Global Mind, believes that “in a few years, executing online campaigns will be much more about pushing buttons than about negotiating with a person and doing [media] planning by hand.”

“Agencies will soon be doing their buying with just a push of a button” – Marcelo Montefiore, CEO, Global Mind.

Lucio Grimaldi, Publicitas, expects that about 20% of all digital media buying will be done through programmatic buying in the near future.

“There are many players who are not going to join this type of buying now, but will be forced to do so,” claimed Campos Carlés, of StartMeApp. “Google, Millennial Media (USA), and Exchanges-Interactive (which bought Nokia), already use RTB. We joined the RTB bandwagon not because we wanted to be innovative, but because media can be bought more efficiently this way and we can achieve better results.”

Juan Pablo Suárez, U.S. Media Consulting, added: “Programmatic buying enhances and accelerates the traditional process—it is a natural evolution. For the past 15 years, digital advertising went through cycles in which inventory and demand aggregators emerged in different layers (sites, AdNetworks, AdExchanges, and DSPs), each integrating the previous layer’s supply, limited only by the technology and processing power available.”

Media buys vs. audience buys

Traditional media buying involves analyzing the digital media where we want to place our advertising. Among other things, the analysis includes thinking about media identity, its audience, number of unique visitors, etc. With the advent of programmatic buying, the very concept of buying will change for some experts. It will no longer mean buying “media,” but rather buying “audiences.”

But the conception of audience will also change in this sense. The audience will no longer be segmented by traditional categories such as sex, age, and socio-economic group, but will instead have as many categories as the advertiser desires. In other words, we can create audiences in highly defined categories, for example: those who have searched for price quotes on microwave ovens, those who have visited this site or that one, etc.

What: Digital media companies Alloy Digital and Break Media are merging to create Defy Media, so as to reach the coveted 12-34 demographic.
Why is it important: Digital media companies are realizing the need to address the younger generations, so as to create new revenue opportunities and stay relevant in their content choices, because through the expansion of their brand portfolios, they will be growing at the same pace. This also opens an interesting business opportunity for advertisers.

Alloy Digital and and Break Media announced their merger, in order to create Defy Media, a digital-centric media company focused on content creation and delivery to the key 12-34 demographic. With this operation, they intend to target the digital generation across established and emerging media platforms, combining globally recognized media brands and proprietary distribution channels.

Founded in 2004, Break Media is a digital media company and the leader in male-targeted content creation and distribution, while Alloy Digital is a digital media company that produces original online content for the 12-34 age group. Alloy Digital’s proprietary digital media network has ranked top in its category for more than three consecutive years, according to comScore, and attracts more than 90MM consumers each month with reach to over 57% of internet users belonging to said age group.

So, Defy Media unites Break Media’s male-targeted network with Alloy Digital’s influential media brands and video networks, thus achieving a more relevant marketplace position with capabilities in content development, in-house production, multi-screen distribution, talent management, brand partnerships and promotion.

Defy Media signifies a transformative moment, fortifying a multi-faceted media model that’s responding to the changing marketplace and expectations of 12-34 consumers.

–Matthew Diamond, CEO of Alloy Digital

Defy Media’s proprietary media and ad network will combine Alloy Digital and Break Media’s assets, delivering its advertisers unmatched access to consumers across key categories, including entertainment, women and men’s lifestyle, comedy and gaming. The merger amplifies Defy Media’s original programming, offering brand partners custom-built and scalable opportunities to align with premium content.