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E-commerce marketing – the practice of converting website traffic into sales – is simple in definition. But shoppers, digital platforms, and algorithms evolve constantly, and so must your strategy. Studies claim that 95% of purchases will be made online by 2040, and online shopping already accounts for 10% of retail sales in the U.S. alone. The numbers leave it crystal clear: brands can no longer afford to avoid the digital marketplace.

For the most part, brands are embracing the opportunity – there are 12-24 million e-commerce sites online, and according to eMarketer, e-commerce sales are expected to hit $27 trillion in 2020 (Note:
COVID-19 impact on consumer behavior will substantiallz accelerate this trend). But to succeed, brands must be strategic and consistent about e-commerce marketing, and how they use the tools that the digital era affords them.

E-commerce marketing involves balance of paid, unpaid efforts

In contrast to shopping in person, e-commerce offers customers a far more personalized, convenient experience. It gives shoppers access to almost any type of product from anywhere in the world and, similarly, gives brands access to platforms with a global reach and a myriad of tools to empower their brand. A recent study found that the #1 reason people shop online is that they’re able to shop at all hours of the day.

Putting your products in front of the right audience requires a balance of marketing efforts that can generally be broken down into paid and unpaid efforts. Unpaid strategies involve drawing the right audiences to your brand “organically” through campaigns that generate audiences and sales through offering relevant, captivating content. SEO falls under the unpaid category as well, enabling better search rankings for those willing to navigate search engines’ ever-changing algorithms.

Paid media typically involves buying a space for advertising across different digital platforms. Common formats include display ads, banner ads, and sponsored ads, and they typically live on platforms like search engines (Google, Bing), social media (Twitter, YouTube, Facebook), and typical websites.

Brands must be thoughtful about how they employ a mix of paid and unpaid marketing strategies, responding to their target audiences’ online preferences and behavior.

E-commerce shoppers are global, young, and skew female  

While each brand is responsible for understanding the particularities of its target audience, statistics on global e-commerce shoppers reveals a number of notable trends. E-commerce is increasingly global:cross-border e-commerce now accounts for 20% of total global e-commerce.

E-commerce is also increasingly generational: A recent study found that Millennials and Gen-Xers spend 50% more time shopping online than their older counterparts: 6 hours versus 4 hours, respectfully. And 67% of millennials and 56% of Gen-Xers prefer to shop online versus in a brick-and-mortar store. Breaking e-commerce down by gender reveals another interesting trend: Men spend 28% more than women shopping online.

Social media continues to drive effective e-commerce marketing

It’s no surprise that today’s social media platforms offer brands a myriad of ways to connect with today’s shoppers. While they can be selective about which platforms they use based on their audience and goals, those that forego a social media presence altogether are missing out. A recent study found that brands with a social media presence experience sales that are 32% higher than those that do not. This when considering the results of a study that revealed that 74% of consumes rely on their social media networks to make purchasing decisions.

Luckily, brands can turn to data to inform their decisions surrounding which platforms to invest in. For example, Shopify reported that the average order value for customers referred from Instagram is $65.00, followed by Facebook ($55), Twitter ($46), and YouTube ($38). Brands are already spending big money to promote their products on social media: eMarketer reported that Worldwide ad spending on Facebook and Instagram combined will reach nearly $95 billion annually in 2021. But other platforms are growing, too: The number of marketers sharing video content on LinkedIn is set to rise to 65% in 2021, for example.

Email marketing allows brands to be proactive in reaching audiences

While consumers actively seek compelling content from brands on social media, email marketing allows brands to initiate a kind of proactive engagement that keeps them top of mind with their audiences.

E-Commerce Marketing Study
Wolfgang Digital, “Ecommerce KPI Benchmarks 2016”

A recent study found that email marketing contributes to 20% of traffic that drives eCommerce sales, and OptinMonster reported that email marketing yields $44 for each $1 spent for a 4400% ROI.

Smart brands use a number of tactics to take full advantage of email marketing. Segmentation – diving groups of consumers into groups based on common characteristics, traits, or behaviors – is key to ensuring that the content a brand delivers its audiences is relevant. Depending on who they are and what they are looking for, consumers will seek different kinds of information and products during their buying journeys. Campaign Monitor reported that segmented campaigns to email subscribers drive a 760% increase in revenue.

 Shoppers increasingly turn to mobile for online shopping

An essential element of any e-commerce marketing strategy involves recognizing the different devices that shoppers use. 85% of customers start a purchase on one device and finish it on another.

Today, a significant portion of e-commerce activity occurs on mobile devices. This is true for all stages of the journey: 93% of Millennials have compared online deals using a mobile device. Shoppers even turn to their phones while in physical stores: 65% of consumers look up price comparisons on mobile while in a physical store, and 32% of shoppers changed their minds about purchasing items after checking out product information on their mobile devices within a physical store.

E-Commerce Marketing Study
Source: Outerbox

They feel as comfortable making important purchases on mobile as they do on desktop devices: In fact, conversion rates from mobile apps are 3x higher than mobile websites, and 40% of all online purchases made during the holiday season are done on smartphones.

What does this mean for e-commerce marketing strategies? Most importantly, brands must design mobile-friendly websites. 73% of consumers will switch from a poorly designed mobile site to one that makes purchasing easier, and people who have a negative experience in your mobile store are 62% less likely to purchase from you in the future. Brands that want to take it a step further can engage shoppers on brand or company-specific apps. According to a study from Invesp, 53% of smartphone and tablet owners will shop on company-specific apps.

AI set to transform shopping experience

While AI is still a nascent technology, it is quickly becoming a useful tool in e-commerce marketing strategies. It is primarily useful for deriving insight from large volumes of data. This is particularly relevant for e-commerce marketers that want to find patterns in shopping behavior and form a 360-view of customers as they give us clues about their preferences through interactions and engagements with your brand.

AI is also immensely useful in delivering better customer experiences. Chatbots represent one of the most popular applications for AI today. While nothing can fully replace the human touch, shoppers are starting to recognize the value that AI-powered customer service tools offer. A recent study found that almost half of consumers are open to the idea of purchasing an item from a chatbot. 57% are interested in getting information sent to them by a bot when visiting a business’s website.

What not to do: additional fees, complicated checkouts 

Shoppers go online for convenience, and if they can’t find what they want easily, or if it won’t be delivered efficiently, they are likely to abandon their journey with a brand. According to a study by Metapack found that 45% of online shoppers abandon their carts when they are unhappy with delivery options, and 69% feel the same about shipping fees.

Similarly, complicated checkout processes, websites that load slowly, and sites that aren’t optimized for mobile will leave the site without making a purchase. The consequences for this can be drastic: 73% of consumers will leave a site if it isn’t mobile friendly.

But there are ways to bring users who abandon back in. Email recovery strategies allow brands to send emails reminding users to return and complete a purchase. They are surprisingly effective, with a study claiming that almost half of recovery emails are opened, and that almost a third incentivize a sale.

Smart e-commerce marketing means automation, personalization, and convenience

Online shopping habits will continue to evolve as technology enables more and more ways to make e-commerce easier, faster, and more personalized. Smart brands can win in this space by staying attune to the devices and platforms that people are using, using technology to complement (and sometimes replace) the human touch, and building the tools to keep transactions as smooth and seamless as possible.

 

In an exclusive interview Cynthia Hudson, SVP and managing director of CNN en Español and Hispanic strategy at CNN, explains how COVID-19 has moved her company to build new offerings in tune with audiences new content needs as well as to optimize content delivery across different screens.

In Q1 2020 CNN en Español’s linear TV audiences have seen triple digit growth rates compared to Q3 2019. The growth has been buoyed up because last March CNN en Español was included in the basic DirecTV package, which helped boost the channel’s overall audience to 22 million households. April 2020, was CNN en Español’s third highest month on record in terms of linear TV viewership by the 25-54 year old demographic.

Hudson tells Portada that CNN en Español’s audience is growing at a very high rate, particularly in digital channels including video and podcast. April 2020 surpassed March 2020 as the biggest month on record in terms of unique visitors at https://cnnespanol.cnn.com, with 50 million unique users and 123% year on year growth, and 123 million video starts (130% year on year growth).

Advertiser Response

The high growth rate of  digital audiences has enabled CNN en Español to substantially increase its programmatic advertising sales, particularly for video. “Advertising in video-programmatic has been three times higher year-to-date, compared to the same period last year,” Hudson asserts. “Our podcasts are sold out until July,” she adds. Regarding overall advertiser response in the current COVID-19 health crisis, Hudson notes that “advertisers are interested in finding ways to reach people with different messaging. They are conscientious about what the consumer really needs. Right now the consumer needs to know that he is not alone.”

Advertising in video-programmatic has been three times higher year-to-date, compared to the same period last year.

At least part of CNN en Español’s audience increase can be attributed to the high credibility of CNN en Español’s information. Hudson emphasizes that it is precisely in times of crisis that audiences crave for “real news, facts and reliable sources.”

Content: Everything Changed …

“COVID-19 changed everything. We are trying to address the new questions: News that impact your life, your CNN en espanolfuture and your family,”Hudson notes. “We are finding we need to grow where the people are and are developing new ways to engage with the audience,” Hudson says. As one example she cites the podcast “COVID19 con el doctor Helmer Huerta”, which has had an audience of more than 1 million listeners. To reinforce its connection with its audience CNN en Español recently activated the “Aquí estamos Campaign.” The campaign stresses that in times of uncertainty, the facts reported by CNN provide clarity and comfort. The campaign is being promoted internally at CNN as well as through CNN en espanol’s digital and linear TV channels.
A new podcast analysing Latino issues and voting trends for the 2020 November election is in the offing. Called “Voto Latino” it will be led by journalist Juan Carlos Lopez. According to Hudson the podcast will address topics such as where Latino politics is going to and what is happening with the political season. “It’s important to take into account that however we manage politics in this country, it reverberates across the world,” she notes.

COVID-19 changed everything. We are trying to address the new questions: News that impact your life, your future and your family.

…including Content Delivery

CNN en Español has been implementing a strategy of delivering content on specific topic areas over linear TV and digital vehicles (desktop, ipad, mobile phones etc.). These include anchor Xabier Serbia led programming on business/finance as well as “Vive la Salud”, a health and well-being show aired every Thursday after CNN’s global town hall. Some segments are specifically built for digital and are broadcast via the Facebook live platform.

Regarding 2021 programming, Hudson notes that the lessons learned during this process are going to continue in 2021. Hudson, who oversees all aspects of CNN’s Spanish-language media businesses, including newsgathering, and editorial content, plans a three pronged evolution of programming. First supporting the ongoing evolution of content delivery across different platforms. Second several documentaries and new series will air next year. Finally, CNN en Español is going to continue to build out content from its bureaus including its offices in Mexico and Argentina (e.g. CNN Primera Manana con Nacho Giron and all news format from CNN’s Argentina office.).

COVID-19 is already having a huge impact on marketing, advertising and media.  How are advertisers reacting to COVID-19? How will different media types ad revenues be impacted by the coronavirus health crisis? Portada got insights from brand and media agencies of the Portada Council System in order to gain some clarity. The answers to 7 crucial questions.

1. How are advertisers reacting to COVID-19?

“In this period, we know that consumers focus on basic needs and expect brands to supply and deliver them reliably. Consumers don’t want brands to stop advertising, but it must not be exploitative or insensitive,” Joseph Kiwanuka, Senior Manager, Cross-Cultural Connections, at UM tells Portada.  A CPG brand marketer in the Portada network says that since the start of the coronavirus crisis, “marketing practices have remained consistent, one insight consistently being practiced is empathy. Messaging reinforces reassurance and value,” he adds.

2. How are brand marketers adjusting marketing expenditures?

Some corporations are freezing or postponing their plans  (e.g. Turbotax as the tax deadline has been postponed to July 15). UM’s Kiwanuka notes that,some of our clients are being tasked with pausing media campaigns and/or turning back media dollars to their corporations to help alleviate the impact to sales. Many matters regarding media budgets are still up in the air and it is still unclear as to the direction that media budgeting for the rest of the year will go. We are taking things a day at a time.”

Many matters regarding media budgets are still up in the air and it is still unclear as to the direction that media budgeting for the rest of the year will go.

3. How are different ad-categories being impacted?

The impact on business and marketing activity will vary across industries, depending on how much demand How are Advertisers Reacting to COVID-19?and investment will be delayed as opposed to destroyed during this crisis. MAGNA, a centralized IPG Mediabrands resource that develops intelligence,  expects the impact to be severe for the travel, restaurant, and the theatrical movie industry, significant for retail (check out Macy’s announcement to furlough 130,000 employees), finance and automotive, moderate for packaged food, drinks, personal care, insurance and pharma, and potentially positive for e-commerce and home entertainment. While the overall impact of the coronavirus on advertising will undoubtedly be negative (more details below), some sectors are actually starting to profit from the increased demand of families for home entertainment.  “We are in a unique position during this crisis since we are the market leader in providing families online education at home. Day to day efforts include accelerating campaigns/creative to be in market sooner and even revising some original copy to align with current events,” a brand marketer in the online education sector tells Portada.

We’re in a unique position during this crisis since we’re the market leader in providing families online education at home. Day to day efforts include accelerating campaigns/creative to be in market sooner.

4. Advertiser COVID-19 Reaction

MAGNA released its revised March 2020 Ad Forecast last Friday and expects all-media full year ad sales to decrease by -2.8% this year as the spending cut from most industry verticals will be mitigated by the incremental political spend ($4.9 billion, up +26% vs 2016), and a V-shaped rebound in the second half (Magna). It remains to be seen if this forecast is realistic, as there is a significant downside risk (see question 7 below).

5. Which media types will be particularly hard hit?

How are Advertisers Reacting to COVID-19?Linear ad sales will suffer the most.  MAGNA released its revised March 2020 Ad Forecast last Friday and it expects media suppliers’ total linear (National and Local TV, Radio, Print and OOH) ad sales to decline by -12% (-20% in the first half, -2.5% in the second half). The decline forecasted by MAGNA would be larger were it not for the political advertising revenues (2020 elections) to be obtained by linear TV, radio and print outlets later this year. Media vendors’ linear ad sales will shrink by -12% (incl. political) this year compared to approx. -4% per year in recent years. The decrease in advertising sales will reach -13% for national TV, -12% for OOH, -25% for print and -14% for radio. The outlook will be slightly more positive for broadcasters and publishers when including digital ad sales. Local TV’s non-political ad sales will also decline massively but political spending (almost US $5 billion, +26% vs 2016) will stabilize full year revenues (+1%).
The sharp decline in ad dollars is not necessarily a reflection of lower linear media usage in the last few weeks. In fact, the opposite is true: for instance in the multicultural space, Spanish-language news viewing increased as much as 50 percent last week among Hispanic adults 18-34 compared to the week prior and 123 percent versus last year. Hispanics over the age of 50 are already heavy news consumers, but their viewing has increased as well (29 and 46 percent, respectively). In addition, for the week of 3/16 -3/22 linear TV usage had as much as 182 percent increase among Asian American teens, compared to the same day the prior week.

The other major loser is experiential marketing as mass gatherings are out of the picture in the next few months. One brand marketer interviewed by Portada who wanted to remain anonymous told us that  “investment is mantained in all channels except experiential.”

Investment is mantained in all channels except experiential.

6. Digital Advertising: More Resilient

How are Advertisers Reacting to COVID-19?At this stage, the total market decline anticipated (-3% or -$6.2bn vs 2019) remains less severe than the decline experienced in 2008-2009 (-20% or -$33bn vs 2007), mostly because of the weight and resilience of digital advertising today. Magna expects digital advertising to be more resilient at +4% (-2% in the first half, +10% in the second half). Digital media ad sales will grow by +4% this year and re-accelerate to +7% next year. Search will slow down to +4.5% growth while social and digital video (including Connected TV) will continue to grow by high-single digits. 

It has to be said that at least in the short term digital advertising, see above  -2% in the first half of 2020,  will be negatively impacted. Third party revenue generating platforms have begun altering their payment processes. Altice-owned Teads and ad tech company GumGum Inc have sought changes to their payment arrangements with publishers, with Teads invoking force majeure on contractual arrangements and GumGum proposing extended payment terms.

Search will slow down to +4.5% while social and digital video (including Connected TV) will continue to grow by high-single digits.

7. Is the advertising forecast realistic? “V” vs “U” shaped recovery

According to Magna, “at this stage, both the macro-economic outlook and the corresponding advertising forecast present a high degree of uncertainty and significant downside risk for 2020. The key question is how long the social distancing imposed demand shutdown will be. The U.S. economy has never been through a period like this in modern economic times. Right now, governments are substantially repressing economic demand through social distancing rules.

Right now, governments are substantially repressing economic demand through social distancing rules. The key question is how long the social distancing imposed demand shutdown will be.

While in Europe substantial efforts are being made to make sure  that companies don’t go bust and employees don’t lose their jobs, that is not true for the U.S. despite the recently signed U.S. 2 trillion fiscal plan. This will become even more of an issue should the shutdown be expanded beyond April 30. Should the social shutdown be expanded to the late spring and summer, the economic and advertising recovery will be U shaped rather than V shaped. Therefore, the 2020 decline in advertising will be larger than the one in the Magna forecast.

Once the virus  is under control the economy needs to be available to hit the ground running and that means that most employees need to remain employed to keep processes and know-how at their companies.
Another caveat poised by analysts is about the quality of the data regarding economic activity (and advertising demand). Most economic data is based on surveys. Are consumers and businesses going to be filling out surveys in this environment? Will data be reflecting accurate information or meaningless noise?

 

According to Comscore, Impremedia’s digital properties, along with Univision and Telemundo, have by far the most audience among Spanish-language news publishers in the U.S. Portada talked to Iván Adaime about opportunities in Spanish’-language publishing in the U.S., programmatic ad sales, SEO, social and more.

 

 Iván Adaime Discloses Impremedia’s Secret

“Not a single news publisher —U.S. based or foreign-based— has more digital Spanish-language audience in the country than Impremedia, Telemundo or Univision,” Iván Adaime, CEO of Impremedia, tells Portada.

Having and monetizing owned-and-operated digital properties has its advantages versus the offerings of advertising networks and other intermediaries in the ad market. According to Adaime, “a publisher like us has an audience of its own. It’s an engaged audience that we reach by creating unique content that appeals to the U.S. Hispanic population. Being a publisher also gives you the ability to create custom content for advertisers and distribute it at scale. An ad network, on the other hand, is just a collection of unconnected foreign-based websites that you can buy directly using any programmatic channel, so its unique value proposition is, unlike in the past, becoming less appealing.”

Content is the main reason behind the 50% year-over-year growth of Impremedia’s audience in the last few years. “The main reason is our content. That’s the key investment on our end. Then you would have to add a clean and fast user experience to the mix. We do not use any interstitial and intrusive ads for example. Finally, we pay close attention to data and analytics. ”

Being a publisher gives you also the ability to create custom content for advertisers and distribute it at scale.

 

Programmatic: the Main Source of Digital Revenues

Ivan Adaime
Impremedia CEO Iván Adaime

If you have an audience at scale and the right ad quality metrics like viewability, programmatic is great. Actually, it is our main source of digital revenues”, Iván Adaime notes. With that said, Adaime still sees an opportunity for direct sales as there are a lot of clients that still prefer to do it this way, and some advertising categories that do not transact well in programmatic.

 

Spanish-Language Publishing is the Largest Opportunity

Impremedia produces content in Spanish for U.S. based audiences because this is where it sees the most opportunity as it is an underserved audience. “We see a bigger opportunity with content in Spanish. We haven’t seen the model ‘English with cultural nuances’ working at scale.”

 

Spanish-Language SEO in the U.S.

As a publisher of Spanish-language content in the U.S, how does Impremedia navigate the SEO space? Is there less competition than for English-language keywords both in terms of SEO and SEM? According to Iván Adaime, search engine optimization is something that he pays close attention to. “There are very few US-based publishers but there’s plenty of competition coming from foreign publishers. We do not do any SEM because we do not pay for traffic. We only invest in creating quality content.”

 

Social: 2 Million Fans and 300,000 Newsletter Subscribers

Impremedia has close to 2 million fans on social media, who are a good source of the company’s traffic. Iván Adaime notes that Impremedia “does not pay to acquire fans, nor do we pay to promote our stories in those platforms. We only invest in creating the type of quality content that attracts our target audience. Newsletters are also a product that we pay a lot of attention to. We have over 300,000 subscribers that are actively engaged.”

 

Mitú, a mlti-channel YouTube network targeting the LatinX consumer has been sold to Latido Networks. How much did Latido pay after investors poured more than US $50 million into Mitú over the last 8 years? What is the rational for the acquisition? And what does the transaction say about the growing LatinX advertising market?

1. To whom was Mitú sold to?

The company that has bought Mitú is a relative newcomer to the media sector: Latido Networks is  a multiplatform media company that creates content for LatinX millennial and Gen Z viewers, it owns the Latin music-focused YouTube multi-channel network VidaPrimo, and recently acquired a minority stake in the double digits in podcast company reVolver Podcasts. GoDigital Media Group — Latido’s parent in audio also owns the indie label Cinq Music, digital rights management company AdShare, and digital supply chain company ContentBridge. After the acquisition, Mitú will coexist alongside Latido Networks — the company’s media division that comprises a 24-hour connected TV channel called Latido Music.

2. What is the price of the transaction?

Sources at Latido did not want to disclose the price of the acquisition. However, its a safe bet to say that this has been a fire sale that provides Mitú a lifeline of sorts. Mitú has had difficulties finding profitability over the last years, in fact there are reports that it had been failing to pay YouTubers that were part of its multi-channel network their earnings as far back as last August and September, although creators now tell that payments have restarted in recent weeks. Multi-channel networks were very hot from the early years to the mid years of the last decade (e.g. Warner Media’s acquisition of Otter TV for US $ 1 billion and Verizon acquiring Awesomeness TV in 2016 for US$ 650 million). However, these companies were able to scale at a rate Mitú has not been able to.

3. What is the rationale for Mitú’s sale?

“It’s very much a “zipper” concept, meaning they provide much of what our other brands (most specifically Latido) were seeking to build, and we have the infrastructure and media impressions that will help Mitú get even more out of its brand reach”, a source at Latido Media tells Portada. Mitú has an engaged audience in the U.S., in English, a strong sales and sales support team. Latido has a Spanish-speaking audience that skews towards Latin America, (not U.S.), wide media distribution particularly in connected TV and global content production. Un-deduplicated audience numbers are 16 million U.S. monthly for Mitú, while Latido and Vida Primo YouTube network have more than 25 million in the U.S.

4. How much money did investors put to work in Mitu since 2012?

More than US $50 million. The high growth rate of the online video (advertising) market has been luring investors for the last decade. also in the multicultural space. In 2012, MItú got funding from a group of investors led by the Chernin Group.Then in November 2018, the company got an additional US$ 10 million in new funding led by San Francisco-based LEAP Global Partners along with participation from prior investors including Upfront Ventures. Previously, Mitú had raised $42 million from investors including Upfront, Comcast, WPP, Verizon Ventures, AMC Networks, Chernin Group and Awesomeness (now owned by Viacom).

5. How large is the LatinX Digital Advertising Market?

“Media companies simply cannot be relevant going forward without a strong foundation in the United States LatinX community,” Jason Peterson, the CEO of GoDigital Media Group — Latido’s parent company — said in the press release which announced the acquisition. Portada estimates,  that digital advertising in English-language media targeting Hispanics (predominantly the LatinX market) rose to US $1.07 billion in 2019. Approximately 80% of that amount is sold by Google and Facebook, leaving approximately  US $210 million for the other players. The changing profile of the identity of U.S. Hispanics is reflected in the evolving structure of advertising expenditures (check out our recent Insights Report-How brands engage U.S. Hispanics: New segmentation approaches),  digital advertising in English-language media targeting Hispanics is growing at a high rate,  while advertising in Spanish-language media is decreasing at a higher rate than overall advertising targeting Hispanics.

Last week, the Justice Department finally approved the T-Mobile and Sprint merger. The combined company spent more than U.S. $2.7 billion in advertising in 2019 and will certainly take new marketing decisions. This will impact vendors (media, agency, sponsorship and other marketing service providers) who support the telco giant with marketing strategy, planning, and execution.  An analysis by Portada’s editorial team: 5 thinks you need to know…. 

1. T-Mobile and Sprint Merger = One of the Three Telco Juggernauts  

After the T-Mobile and Sprint merger, the new company now is officially one of the three U.S. telco giants. The merged entity will manage around 100 million direct customers  (excluding  wholesale users), around the same level as Verizon (116 million) and AT&T (93 million). Retail store wise , T-Mobile-Sprint has approximately 9,300 stores (Sprint 4,000 and T-Mobile has more than 5,300 stores.)

… Competition (Need for Marketing) Continues to be Huge…

AT&T, Verizon, T-Mobile-Sprint will very likely face a fourth major player: Dish. Part of the reason why the DOJ (Department of Justice) approved the merger is that Dish may be able to join AT&T, Verizon and Sprint as a fourth player, therefore increasing competition (and marketing dollars). The DOJ, in seeking to create a viable fourth wireless carrier, insisted Dish be allowed to sell a 50 percent stake to strategic investors as long as they do not include T-Mobile and Sprint rivals like AT&T, Verizon or cable companies including Comcast, sources explained. As importantly, the DOJ approved the T-Mobile-Sprint merger, because Dish, recently bought Sprint prepaid brands Boost Mobile and Virgin Mobile.

… Currently: US $2.7 Billion in Advertising Expenditures

Both Sprint and T-Mobile spent approximately US $2.7 billion in advertising together in 2019, according to their annual reports. In 2019, T-Mobile U.S. spent approximately US$ 1.6 billion on advertising, while Sprint expenses totaled $1.1 billion, $1.3 billion, and $1.1 billion for each of the years ended March 31, 2019, 2018, and 2017, respectively. (Competitors Verizon and AT&T spent US $ 2.64 billion and US $3.52 billion in advertising last year.)
With US $8.56 billion, Telco was the third largest ad-category after retail and automotive (Statista). The U.S. telecom industry was expected to increase its digital ad spending by 16.2% to $13.45 billion in 2019. (E-Marketer). In 2018,  AT&T was the second-largest U.S. advertiser, Verizon the 10th largest with T-Mobile (23) and Sprint (39).

2. Sponsorships: Expansion of Sponsorship Portfolio with Emphasis on Local Properties

Sports and entertainment event sponsorships are another extremely important channel for telco marketers. In 2017, AT&T spent between US $195 and US $200 million in sports and entertainment sponsorships, according to sponsorship.com. Similarly, Verizon spent between US $160 and US $165 million, and T-Mobile between US $50-55 million. Sprint did not make it to the top 50 sponsorship investors in 2017. While Sprint was a 2019 Super Bowl advertiser, it did not advertise in the last Super Bowl two weeks ago. T-Mobile did with its spot promoting its nationwide 5-G network (see below).

Portfolio Expansion with stronger local ties
We expect the combined company to expand its sponsorship portfolio (Major League Baseball, T-Mobile Arena, American Music Awards, etc.) with ties to local properties in new and underperforming markets.

3. Marketing Growth Drivers: 5G, Retention and Enterprise

T-Mobile, unlike Sprint,  has excelled at adding new subscribers to its network. Mike Sievert, President and Chief Operating Officer at T-Mobile, said during the company’s Q4 2019  earnings call that T-Mobile not only added a million postpaid phone net adds, leading the industry significantly, but 1.9 million total net customers joined the Un-carrier movement in Q4. “That makes 27 quarters in a row we’ve had more than 1 million total net customer adds per quarter,” Sievert stated.
Where does the combined T-Mobile-Sprint see growth (and the need to allocate marketing dollars) going forward? Here are three areas:

Customer Retention Marketing
North America will reach 313 million mobile subscribers in 2020 or an 84% penetration. With many subscribers owning more than one connected device, the total number of connections will be higher, at 585 million by 2020. With the saturation of the subscriber mobile market, customer retention (and retention marketing) will be crucial for operators P&L. The way customers are retained will become more and more important and will no will no longer be primarily through simply offering telecom services but instead via combining those with non-telecom services and third-party offers.

Growth Driver: Entering the Enterprise Market
T-Mobile share of the enterprise market is below 6%. It’s improved distribution footprint coverage will provide significant opportunity to penetrate the enterprise market. Expect increases in B2B marketing and advertising dollars.

5G: Mobile competes with home broadband
Albeit still developing, customers with a 600 MHz 5G capable device will be able to access T-Mobile’s nationwide 5G network. It will be marketed as a premium service based on increased speeds. This will open opportunities for T-Mobile-Sprint to take on the home broadband (cable) market in 2020.

4. Sprint and T-Mobile Brands: Which brand(s) will survive?

T-Mobile brands
The vast majority of T-Mobile subscribers are served by the main brand: T-Mobile.  MetroPCS —now Metro by T-Mobile—, still operates as a secondary prepaid brand. (In 2013 T-Mobile announced an expansion of its newly acquired Metro PCS to 15 markets, some of them heavily populated by Hispanics in Texas and California.)

Sprint brands Boost Mobile and Virgin (both sold to Dish)
Sprint prepaid brands Boost Mobile and Virgin Mobile were sold to satellite TV provider Dish Network to facilitate the acquisition from a DOJ perspective (see above). Dish paid US $$1.4 billion to acquire Sprint’s Boost and Virgin Mobile prepaid services, with a combined total of around 9 milion customers.

The new brand will “lean pink”
It’s is very likely that “T-Mobile” will emerge as the unified overall brand. Already according to the April 29, 2018 merger announcement, it seemed most likely that the combined company will lean pink (per T-Mobile’s branding), given that it will keep the “T-Mobile” name. Like its network, the Sprint brand probably will be folded into T-Mobile’s in coming years.

5. Media Agencies: Consolidation likely.  Who Will Win, Who Will Lose?

Sprint: Horizon Media/Droga 5/In-house
In May 2017 Sprint Corp. moved its (at the time) US$700 million media account from Publicis Groupe’s Mediavest Spark to independent media agency Horizon Media, Although it later took some of its media duties in-house. Droga 5 is Sprint’s Agency of Record.

T-Mobile: WPP’s Essence/In-house
Similarly, T-Mobile, took “some key responsibilities” related to its media strategy, search and analytics in-house and formed a new partnership with WPP’s Essence to help.

Consolidation: In-house increase likely with external support
With T-Mobile increasing its in-house capabilities and the company’s overall view of the crucial importance of first party data management and protection, it is likely that T-Mobile will build out its in-house media planning buying capabilities but still lean on an agency partner for expertise and execution support.  Will it be Horizon Media, Essence or someone else? Honestly, we don’t know yet…

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.

Americans’ interest in soccer both as active participants in soccer matches as well as in fandom is growing at a high rate. Therefore, the brand marketing community is taking notice and considering more soccer sponsorships. What is the best strategy for marketers to engage with the Hispanic population through the soccer passion point? International leagues and clubs such as LigaMX, English Premier League and La Liga are alluring propositions. Here’s why.

 

A 2018 Gallup poll shows soccer ranks second in popularity only surpassed by football among the coveted 18-34 demographic. Soccer ties with basketball at 11% and is ahead of baseball at 6%. Undoubtedly, soccer, including beach soccer, is a substantial alternative for brands to reach out to this coveted population segment. These are two reasons why European and Mexican soccer sponsorships can be viable alternatives.

1. High Name Recognition of European Clubs and Stars

Lionel Messi – Photo Property of Futbol Club Barcelona

The high name recognition of European clubs among U.S. audiences, and even more among U.S. Hispanic audiences, explains why brand marketers prefer these marketing platforms over MLS. Thus, more American brands are closing soccer sponsorships with clubs including Futbol Club Barcelona, Real Madrid, Manchester United, Juventus and Bayern Munich. Moreover, the fact that global soccer stars like Lionel Messi and Cristiano Ronaldo are household names makes maximizes opportunities.

Partnering with European Leagues can be alluring to major U.S. consumer brands. As an example, LaLiga North America  —a joint venture between LaLiga, Spain’s top-soccer league, and Relevent Sports Group- recently partnered with Allstate for Soñando con LaLiga, which details the experience and progress of the best 17 players from the Allstate Sueño Alianza National Showcase while they traveled to Spain and competed against LaLiga academies and in front of LaLiga coaches and scouts. (Check out the partnership of Paris Saint German with Nike subsidiary Air Jordan.)

2. LigaMX Soccer Sponsorships Speak Closer to Hispanic Consumers than MLS

The Mexican LigaMX can be a much better soccer marketing vehicle to engage U.S. Hispanics than the MLS, Nick Kelly, Head of U.S. Sports Marketing at Anheuser-Busch, said at last fall’s Portada New York conference. The fact that 70% of Hispanics are of Mexican origin explains the high popularity of the Mexican National Team and LigaMX clubs (e.g. América, Guadalajara, Toluca, and Cruz Azul) among U.S. Hispanics.

soccer sponsorships expert
Nick Kelly

All our world cup campaigns were about the Mexican National Team (not the U.S. National Team)”, said Nick Kelly, a member of Portada’s Sports Marketing Board. Anheuser-Busch partners with the LigaMX particularly for soccer sponsorships and activations in the Southwestern U.S., an area with a very large Hispanic population. In particular, he mentioned Texas, Arizona and Nevada, as well as cities like Houston, Dallas, and surprisingly, Nashville.

Toyota is another company that is betting on Mexican soccer for its Hispanic outreach. Tyler McBride, Engagement and Events Marketing Manager at Toyota Motor North America, told Portada that he is partnering with Club America because they are the top club and most successful team in North America. The team is recognized internationally with a storied history and winning tradition in Mexico’s Liga MX and they are the most-watched soccer league in the United States. “Our partnership with Club America allows us to engage with Liga MX fans year-round across multiple touchpoints,” he said.

Featured image by Vienna Reyes on Unsplash

 

In the era of technology, the winner is the one who adapts faster. Thus, clients are moving their programmatic ad buying in house, as well as looking for media services in big consultancy firms such as Accenture. This results in a need for tech knowledge in ad media agencies who are  facing challenges to remain relevant. Learn how Portada Council System’s leading brand marketers and agency executives offer solutions to better adapt to an increasingly demanding technological landscape. 

 

Kick-Off Facts

need for tech knowledge

  • About 30% of marketers were unsatisfied with their agency model in 2018. (Movidiam)
  • Nearly 80% of the brands that are members of the U.S. Association of National Advertisers (ANA) have some form of in-house agency, almost double since 2008. (ANA)
  • In 2019, the purchase of creative ad agency Droga5 by Accenture meant adding a creative muscle not normally associated with giant consulting firms. Additionally, WPP announced that it would not participate in pitches audited by Accenture.

Check out the previous Brand Marketer Challenge here: Social Media’s Evolving Role, 4 Opportunities for Travel and Lifestyle Marketers 

Three Tech-Knowledge Challenges According to Portada Council System Members

1. Focusing on Digital Lower-Funnel Can Hurt Traditional Brand Buiding

Related comment: “Consultancies and MarTech companies are mostly involved with lower-funnel conversion, but what happens if nothing comes in the lower funnel? Focus on digital to the exclusion of traditional media which may have a more brand building, higher-funnel role in messaging.”

This is just another fad in the industry. Media agencies have a much more unified approach to marketing and media than consultancies.

2. Finding the Right Talent Isn’t Easy

Related comment: “One way to boost talent and knowledge is by encouraging companies to move from vertical structures to demand cells (sales, marketing, supply, development, etc) so that they can evolve to multifunctional teams instead of verticalities.”

There’s too much technology, too many tools that no one knows how to handle.

3. Leadership is Too Far Above

Related comment: “Managers often give instructions from corporate without much real knowledge of the market.”

Many times, senior executives at agencies have a lot of theoretical knowledge they haven’t really put in practice.

If you are interested in joining the Portada Council System, our year-round knowledge sharing and networking platform, find out more here or contact us here if you are marketing services supplier and here if you are a brand marketer.

Two Tech Knowledge Opportunities identified by Portada Council System Members

1. Agencies Have Often More Cultural Knowledge than MarTech Companies

Related comment: “Firms with no cultural knowledge can affect messaging to multicultural segments. There is a need for cultural identifiers.”

Brands that market ‘in culture’ are more successful. Consultancies are often not able to take this into account.

2. Advertisers Have the Opportunity to Influence Talent Selection

Related comment: “Some clients are more prepared than the agency ‘experts'”

Practical example: A famous multinational company changed to a new agency and made sure to be able to influence payrolls, positions, objectives, etc.

It’s not about tecnology, but about knowledge.

 

If you are interested in joining the Portada Council System, our year-round knowledge-sharing and networking platform, find out more here or contact us here if you are marketing services supplier and here if you are a brand marketer.

In the era of technology, the winner is the one who adapts faster. Thus, clients are moving their programmatic ad buying in house, as well as looking for media services in big consultancy firms such as Accenture. This results in a need for tech knowledge in ad media agencies who are  facing challenges to remain relevant. Learn how Portada Council System’s leading brand marketers and agency executives offer solutions to better adapt to an increasingly demanding technological landscape. 

 

Kick-Off Facts

need for tech knowledge

  • About 30% of marketers were unsatisfied with their agency model in 2018. (Movidiam)
  • Nearly 80% of the brands that are members of the U.S. Association of National Advertisers (ANA) have some form of in-house agency, almost double since 2008. (ANA)
  • In 2019, the purchase of creative ad agency Droga5 by Accenture meant adding a creative muscle not normally associated with giant consulting firms. Additionally, WPP announced that it would not participate in pitches audited by Accenture.

Check out the previous Brand Marketer Challenge here: Social Media’s Evolving Role, 4 Opportunities for Travel and Lifestyle Marketers 

Three Tech-Knowledge Challenges According to Portada Council System Members

1. Focusing on Digital Lower-Funnel Can Hurt Traditional Brand Buiding

Related comment: “Consultancies and MarTech companies are mostly involved with lower-funnel conversion, but what happens if nothing comes in the lower funnel? Focus on digital to the exclusion of traditional media which may have a more brand building, higher-funnel role in messaging.”

This is just another fad in the industry. Media agencies have a much more unified approach to marketing and media than consultancies.

2. Finding the Right Talent Isn’t Easy

Related comment: “One way to boost talent and knowledge is by encouraging companies to move from vertical structures to demand cells (sales, marketing, supply, development, etc) so that they can evolve to multifunctional teams instead of verticalities.”

There’s too much technology, too many tools that no one knows how to handle.

3. Leadership is Too Far Above

Related comment: “Managers often give instructions from corporate without much real knowledge of the market.”

Many times, senior executives at agencies have a lot of theoretical knowledge they haven’t really put in practice.

If you are interested in joining the Portada Council System, our year-round knowledge sharing and networking platform, find out more here or contact us here if you are marketing services supplier and here if you are a brand marketer.

Two Tech Knowledge Opportunities identified by Portada Council System Members

1. Agencies Have Often More Cultural Knowledge than MarTech Companies

Related comment: “Firms with no cultural knowledge can affect messaging to multicultural segments. There is a need for cultural identifiers.”

Brands that market ‘in culture’ are more successful. Consultancies are often not able to take this into account.

2. Advertisers Have the Opportunity to Influence Talent Selection

Related comment: “Some clients are more prepared than the agency ‘experts'”

Practical example: A famous multinational company changed to a new agency and made sure to be able to influence payrolls, positions, objectives, etc.

It’s not about tecnology, but about knowledge.

 

If you are interested in joining the Portada Council System, our year-round knowledge-sharing and networking platform, find out more here or contact us here if you are marketing services supplier and here if you are a brand marketer.

The fate of multicultural marketing is a hot-button topic, with some saying it’s officially “dead” and others arguing that it should be more important today than ever. As minority ethnic groups shaped the evolution of the U.S. population in recent years, multicultural marketing became a hot topic in every corporate marketing department. Smart brands started to invest significant effort in strategies to reach ethnic groups with distinct cultural and ethnic behaviors and values. Best practices emerged, but marketers often stumbled and struggled to get it right. 

Today there is a wide range of views on multicultural marketing among industry leaders. Here, we look at a range of perspectives on how brands can form genuine, long-lasting connections with diverse audiences.

Ethnic minorities playing an increasingly important role in U.S. demographics

Between 2000 and 2010, the U.S. Hispanic population grew by 43%, or four times the growth rate of the total population, according to the Census Bureau. And they’re not slowing down – the U.S. Hispanic population is expected to double in the next 40 years. In 2020, the country’s population of 17-years-old’s and under will come from a minority background for the first time.

In fact, diverse ethnic groups are so significant to the makeup of the U.S. population that the Census Bureau recently launched a $500 million marketing campaign in 13 different languages aimed at reaching multicultural audiences. For the first census to go digital, the U.S. government is making a massive effort to reach 99% of the population. In today’s America, that requires significant effort to reach niche ethnic audiences.

While this year’s census is sure to provide important insight on population trends, the government predicted that by 2020, U.S. Hispanics will make up 29 percent of the growth in real income and are expected to add more than $1.3 trillion in buying power. Despite all this, multicultural ad spend only makes up 5% of marketing budgets today.

America’s shifting population sparks debate over multicultural marketing

Latinx, Asian and African American populations now have a combined population of 130 million, making up almost half of the population. With the massive growth of these demographics came a shift in the marketing world. The big question was this: How do cultural differences among ethnic groups shape different lifestyles, preferences, and values? And how can marketers better target these different groups with tailored products, messaging, and campaigns?

Multicultural marketing became both a buzzword and a real concept: Entire departments and agencies dedicated to targeting diverse audiences emerged. But as ethnic minorities become the new “majority” in the United States, some have argued that the term is obsolete.

After all, if such a significant slice of the American population is multicultural, then what exactly is the general market if not a mix of diverse cultures? Some marketers have begun to argue that in a “minority-majority” country, treating different cultural groups as separate from the general market no longer made sense. Today, the fate of multicultural marketing is a hot-button topic in the industry, with some saying it’s officially “dead” and others arguing that it should be more important today than ever.

Some marketers have begun to argue that in a “minority-majority” country, treating different cultural groups as separate from the general market no longer made sense.

Minorities don’t believe they are being represented in ads

Brands’ failure to reach diverse audiences is reflected in the attitudes of minorities themselves. A recent study by Adobe found that nearly three in four whites (74 percent) believe their race/ethnicity is represented in the ads they are served, compared to 26 percent of blacks and only 10 percent of Hispanic/Latinos.

Some argue that multicultural is the new general market

Those that argue that multicultural marketing is dead focus on the fact that there are now so many ethnic minorities shaping the U.S. population that they have become the new general market. They argue that treating ethnic minorities like distinct audiences reflects an attitude that pits assimilation against multiculturalism and provokes cultural boundaries instead of inclusion.

This attitude would imply that diversity and multicultural departments, multicultural agencies, and segmentation by ethnicity are all unnecessary. At the same time, it would lead to new approaches to marketing that look at the general market with an appreciation for how cultural forces and fusions shape trends and consumer behavior. Concepts like cross-cultural and poly–cultural marketing are emerging. Some find this exciting, not discouraging.

Diversity and Inclusion important, but not the same as multicultural marketing

Given the country’s ongoing demographic evolution, backlash against multicultural marketing is surprising to some. Many veteran marketers have issued a warning to those who minimize the importance of multicultural marketing. To them, a “minority-majority” America offers smart marketers enormous opportunities for growth.

Despite the growth and purchasing power of multicultural populations, corporate America tends to look for blanket approaches to addressing diversity. There has been a recent increase in the number of “Diversity and Inclusion” programs in corporate offices. This is an important effort that is effective in creating an inclusive space for diverse voices in the workplace, but it is not the same as maintaining multicultural marketing practices.

Corporate brands need multicultural marketing departments because representing diversity in the office through “Diversity and Inclusion” programs is not the same thing as investing in strategic initiatives to better market to multicultural audiences. The former looks inward to shape corporate and workplace culture, and the latter looks outward to grow business.

U.S. Hispanic identity tied strongly to culture of origin

According to a study by Kantar Consulting, 92% of Hispanics believe that it feels natural to live in the U.S. and connect to its culture but  retain the culture of their country of origin.  57% of Hispanics believe that the Spanish language is more important to them today than it was just five years ago. And 62% of younger Hispanics – the ones who feel particularly unrepresented in the market – reported becoming more interested in the Spanish language. Brands looking to connect with emotions and themes that truly connect with Hispanic audiences should look to their cultural roots for sources of inspiration.

Smart brands are turning to multicultural to reinvigorate, strengthen image

Some marketers have identified and built strategies around these opportunities. Large brands across the country are betting big on multicultural to transform their brands and, in turn, lead to significant growth.

Denny’s “See You At Denny’s” Campaign

Fast-food chain Denny’s is one example. The brand is looking to target young, multicultural diners with their campaign “See You at Denny’s,” which focused on illustrating a diverse, relaxed, and comfortable brand.

John Dillon, Chief Brand Officer at Denny’s, explained to Forbes: “It was important for us to tell our story to multiple audiences and to make sure we’re speaking to the cultural nuances of African-American consumers and Hispanic consumers, as well as the total market. Working with these three agencies executes those nuances and allows us to share who we are as a brand and the inclusivity and diversity that we stand for. We are a family brand and always have been and we are recognizing that the American family has evolved.”

Procter & Gamble is also betting big on multicultural after discovering that they record top performance among African American and Hispanic consumers in market share. Marc Pritchard, P&G’s chief brand officer, told the audience at the Association of National Advertisers’ (ANA) 2019 Multicultural Marketing & Diversity Conference that if P&G’s brands could match their general-market performance with multicultural audiences. “The size of the prize is big – up to $1 billion in extra sales just by achieving market shares equal to the national average on all of our brands,” Pritchard said.

Whatever your view on multicultural marketing, inaction is irresponsible

While reasonable marketers can disagree about multicultural marketing, all comprehensive marketing strategies must account for today’s increasingly diverse population. Whether you adopt the “minority majority” attitude, focus on cultural fusion, or embrace segmented targeting, successful marketing means recognizing and elevating a wide range of voices and cultures.

The podcast advertising market is becoming a force to be reckoned with. In fact, marketers are projected to spend over US $1 billion by 2021 according to the IAB and PwC. One recent transaction in the podcast M&A space caught our eye: the strategic investments in reVOLVER Podcasts by Latido Music.

 

Latido Music Partners Up with reVOLVER Podcasts

Latido MusicA source at Latido Music, a digital platform for Latin music fans, has told Portada that “for now, it is a minority stake in the double digits, but we are both optimistic about reVolver’s long-term success and ambitious, so you can draw your own conclusions.”

For now, it is a minority stake in the double digits.

The source adds that this was a strategic investment in every sense of the word. “We see reVolver as having a leadership position in its segment, and we like that its consumer base overlaps substantially with that of Latido Music.”

As with most target audiences in the digital age, the digital media industry for Latinx is very fractionalized. That is why, according to the source, ” a strategic investment in reVolver is something of a ‘horizontal integration’ strategy. We try to capture a greater mind share of this important audience across devices and content types, rather than trying to own the entire value chain of a single content type – which in this day and age is effectively impossible anyway.”

 

Graduated Investment

The amount of the investment has to remain undisclosed. However, the source adds: “that it is a graduated investment, meaning our stake in the company will grow over time.”

 

Check out previous Insider columns

Insider: Snackable Content, Multicultural as Something Organic, Amazon Ad Sales and More…

 

 

Shopping habits on and offline, brand loyalty, and mobile technology on fire this 2020! A summary of the most relevant consumer insight research. If you’re trying to keep up with the latest happenings, this is your one-stop-shop. Check out the previous consumer insights roundup here.

 

  • According to a new consumer survey from TD Bank, millennials made nearly four major purchases in the past year on average. In comparison, Gen Xers and Baby Boomers averaged 2.8 major purchases combined. Millennials not only spend more, but they are also more thoughtful about their purchases. According to the survey results, they spend more time, on average, researching major purchases than any other group. Compared to baby boomers and Gen Xers, millennials are also more likely to research products through a retailer’s website, social media, and third-party websites. Also, they’re more likely (39%) to research financing options than their elders (22%).

 

  • The 2020 Deloitte Global Automotive Survey, which questioned more than 35,000 consumers in 20 countries, found U.S. consumers are not very enthusiastic about paying for automotive technology. For instance, 60% of U.S. consumers are unwilling to pay more than $500 for advanced safety technology. In a similar way, 66% of surveyed Americans said they wouldn’t pay for advanced connectivity, 75% for infotainment, 58% for autonomy, and 54% for alternative engine solutions.

 

  • Valassis has released the findings from a study conducted with Kantar, which surveyed 1,000 U.S. consumers about their shopping habits. The study, The Future of How People Shop, found that 68% of consumers believe they have become better equipped to make informed purchase decisions compared with five years ago. Thus, 60% of consumers often research products online before making a purchase, and 62% said they closely read product labels. Many of them also rely on advertising, as 43% of consumers said targeted advertising should be able to guide them through the store to locate products.

 

  • Research by Soti, published by Mobile Marketer, has found that mobile technology is important for better retail experiences. More than three fourths (78%) of U.S. consumers said retailers that implement mobile technology for both shoppers and store employees enable a faster shopping experience. Almost half (45%) of shoppers said they prefer sales associates to use mobile devices for checkout on the sales floor rather than heading to the traditional cash register. In addition, Soti’s data shows 53% of consumers use credit and debit cards, while 23% prefer cash and only 11% use mobile payment apps.

 

  • According to a Criteo study which surveyed over 1,000 U.S. consumers, 73% of shoppers are willing to try new brands they have heard positive things about. Discounts and offers often drive consumers who decide to check out a new brand, agree 93% of respondents. Criteo found 57% of U.S. shoppers rely on apps to look at products and get ideas, 55% use them to check out ratings and reviews, and 58% to make purchases. Overall, Criteo found 52% of shoppers look forward to shopping in stores when they have time. On the other hand, 41% enjoy shopping in stores to understand what’s in style or new, and 37% prefer to do as much online shopping as possible.

 

 

According to our just-released survey “What Brand Marketers Need from MarTech in 2020″, advertising technologies for audiovisual media (Addressable TV, Video, Digital Audio and Display, and Programmatic) are the main investments items for the brand marketing community in 2020.

On average, marketing technology now accounts for almost one-third of marketing budgets. Marketers will increase their investment in marketing technology by 27% over the next four years, spending more than US $122 billion on marketing tech by 2022 according to Gartner Research.

The Portada Survey What Brand Marketers Need from MarTech in 2020″ sheds light on the structure of the growth of MarTech expenditures. Based on a poll of 100 brand marketers who are members of the Portada Council System, conducted in the fourth quarter of 2019, Addressable TV, Video, Display and Programmatic, and Digital Audio are pre-eminent investment areas in 2020. They are included in the overall category of Advertising & Promotion, which was chosen as the main overall MarTech expenditure priority by more than 56% of the surveyed brand marketers (see table below).

[table id=1 /]

Contents of “What Brand Marketers Need from MarTech in 2020” 

1. Background: MarTech’s Relentless Rise

2. Main MarTech Expenditure Types per Category in the Survey

3. Survey Results: Brands are Planning to Invest in the Following MarTech Categories in 2020

  • Within Advertising & Promotion, Ad-Tech for Audiovisual Media Plays a Crucial Role
  • Customer Experience: Optimization & Personalization & Testing Leads
  • Social & Relationships. Brands are planning to invest in the following sub-categories of marketing technologies during 2020:
    • Commerce & Sales: Social Media Related Expenditures Lead
    • Data: investment Focus lies on Audience Marketing & Attribution

4.1. Brand/Media Buying Agencies

4.2. Advertising & Promotions: Marketing Budget Weighted Outcome

4.3. Advertising & Promotions: Marketing Budget Weighted Outcome 

Get the Survey

If you are a brand marketer, please click here.

If you are a Marketing Services Supplier, please click here.

Snackable content opportunities, Gonzalo del Fa’s 2020 goal of making multicultural something organic across agencies/clients and more intelligence about what is going on in marketing and media right now. And Portada’s take on it.

Brands looking for Snackable Content Opportunities in 2020 (TikTok and Quibi)

We recently published a piece on the main opportunities and challenges for 2020  according to members of  of the Portada Council System. These opps and challenges include Marketing in a world with a smaller Facebook, Advertising in a divisive political environment and Cross-screen measurement. Here another opportunity as seen by a senior brand marketing executive interviewed by Portada: “With our attention spans becoming shorter and shorter, I think the biggest marketing opportunities that I would like to explore in 2020 are TikTok and Quibi. I think snackable content is the direction that we are moving in, be it 60 seconds or 7-10 minutes. I hope to explore branded content partnerships & product placements on these two platforms in the near future and will be challenged to figure out what success looks like on these platforms.”

I think snackable content is the direction that we are moving in, be it 60 seconds or 7-10 minutes.

An Organic Integration of Multicultural into Brand Marketing Decision Making

Gonzalo del Fa, GroupM“My main goal for 2020 is to make of multicultural something organic across all agencies and clients”, Gonzalo del Fa, president of GroupM Multicultural tells Portada. Del Fa, and his New Majority Ready™ Coalition, hit the topic on the spot. Multicultural marketing should lie at the very heart of Corporate America because the population of the U.S. is predominantly multicultural. This fact should also be reflected in how multicultural marketing opportunities are incorporated into brand marketing decision making. To “make multicultural something organic” means to make decision makers at corporate marketing departments and agency media buying units aware of the opportunity and integrate its discussion organically into brand marketing decision making. (Multicultural) marketing will only work when data analysts and marketing executives with budget decision making power work together in the same business unit (for an example check out Pepsi).

My main goal for 2020 is to make of multicultural something organic across all agencies and clients.

Amazon’s Expanding Ad Sales Team

The more consumers use Amazon’s platform, the more advertisers are willing to place ads on Amazon Advertising’s network. The “other revenue” line in Amazon’s P&L amounted to almost US $3.6 billion and grew by 45% in the third quarter of 2019. The majority of that revenue are advertising revenues. Not surprisingly Amazon is beefing up its ad sales teams. Also in multicultural; Fabio Brunelli  was just appointed as Head of Multicultural Ad Sales U.S. for Amazon.

Peacock

With most broadcast companies loosing linear TV advertising revenues in the order of 10%-20%  annually,  no wonder that Comcast’s NBC is betting heavily (a US $2  billion investment spread over 2020 and 2021) on its streaming platform Peacock. Contrary to many of its competitors in the crowded streaming service market, Peacock is mostly an advertising revenue bet.  Matt Strauss, Chairman Peacock and NBC Universal, says that measurables for the new streaming service are driven in three ways: Active accounts (accounts streaming each month); Engagement (hours watched per account); and ARPU (Average Revenue per User). NBC expects to have between 30 to 35 million subscribers by 2024. By 2024, NBCU expects to break even with an ARPU of $6-7 (mostly advertising revenue based), revenue of US $2.5 billion per year. Comparatively, Hulu generates $10 per sub on advertising today, Strauss notes.

Sorrell’s Non-Traditional Marketing Bet S4 Capital Now Includes Circus Marketing

S4 Capital, the Martin Sorrell backed holding company recently acquired Mexico City-based digital content agency Circus Marketing. Circus will continue to have a presence in the U.S. through its Santa Monica, Los Angeles office, a Circus executive tells Portada. S4 Capital is merging Circus into MediaMonks, the Dutch digital production company which also has a strong presence in Latin America.  The common thread of all S4 Capital acquisitions is that “none are traditional marketing entities, rather, they’re very digital at their core, whether that be related to production, creative, marketing, programmatic or data,”  Jay Pattisall, a principal analyst at Forrester, told AdExchanger.

Pepsi announced an integration with Telemundo’s, through which it will become the first-ever beverage sponsor of La Voz, the Spanish-language edition of NBC’s  “The Voice.” As the show’s first-ever beverage sponsor and prizing partner, Pepsi will take the season two stage by storm, celebrating Latin music and the talented phenoms giving everything to become the next big musical superstar. The premiere episode of season two of “La Voz” is set to air this Sunday, January 19th.

 

Esperanza Teasdale
Esperanza Teasdale, VP & General Manager, PepsiCo’s Hispanic Business Unit

The new investment reflects Pepsi’s Hispanic Business Unit commitment to Hispanic Marketing and to “elevate the voice of the Hispanic consumer”, Esperanza Teasdale, VP & General Manager at PepsiCo’s Hispanic Business Unit , tells Portada. “The La Voz sponsorship, which taps into the Pepsi brand’s rich heritage in music and entertainment, allows us to celebrate Hispanic culture and passion points and support the next generation of talented musicians who aren’t afraid to live life their way and chase their musical dreams,” Teasdale adds.

The campaign is focused on Fusionistas who celebrate both the Hispanic and overall American culture.

Pepsi will level up the season two “La Voz”  prize, bringing the original $100k grand prize up to an epic $200K.  The integration will span the blind auditions, battle rounds and live performances.  It will feature cups branded with Pepsi in the coaches’ chairs and include Pepsi branding across a number of touchpoints:  multi-screen  presence throughout the season, in-show and out-of-show custom activations on linear and social and prominent thematic storylines woven throughout the season.

La Voz Sponsorship with the Fusionistas Target in Mind

Teasdale, a half Ecuadorean and half Colombian executive, notes that “Pepsi understands the passion point that Hispanics have with music. It’s in their DNA.” She adds that the campaign is focused on Fusionistas who celebrate both the Hispanic and overall American culture.”

 

“Eso es lo que quiero”

The integration will also bring to life and feature the newest U.S. Pepsi campaign tagline, “That’s What I Like” (“Es Lo Que Quiero”).  Launched earlier this month, the new tagline is the brand’s first in two decades and is inspired by the most loyal Pepsi drinkers, who proudly like what they like and live their lives out loud without worrying about what others will think – whether that’s belting out a song at karaoke, clapping at the end of a movie, or simply enjoying a Pepsi.

Pepsi unveiled five new national commercials to launch the new tagline, three of which were developed in partnership with the Pepsi brand’s Hispanic agency, Alma (“DJ BBQ,” “Subway,” and “Lavandería).  The new ads spotlight various everyday people getting lost in a moment and finding themselves dancing in unexpected places or situations, despite the amused gaze of onlookers.  Each spot is underpinned by a variety of upbeat music spanning hip-hop, dance hall, Latin pop tracks and more. The spots will air across English and Spanish-speaking properties to reach the brand’s ever-growing fusionista fans, Latinos celebrating and blending their Hispanic and U.S. cultures.

Radisson Anápolis, GM Bets on LatAm Market, Fazenda Futuro©´s Vegan Sausages & More Sales Leads LatAm

For prior Sales Leads LatAm editions, click here.

 

  • Radisson Anápolis

Radisson Anápolis: recognized hotel brand Radisson announced the opening of Radisson Hotel Anápolis at Avenida Oscar Mohn, No. 250, Anápolis, Brazil. This upscale hotel is perfectly positioned in one of the fastest-growing cities in Goiás, providing a convenient spot for guests interested in checking out the Brasil Park Shopping, or business travelers visiting companies like Vitamedic orLinea Alimentos. The hotel is also conveniently located near Terminal Rodoviário Josias Moreira Braga bus station and Goiânia Airport (GYN).“Our partnership with Atlantica Hotels allows us to bring the bright, inviting and balanced feel of the Radisson brand into vibrant cities like Anápolis, Brazil,” said Frances Gonzalez, vice president of Operations for Radisson Hotel Group in Latin America.Atlantica Hotels is a licensee for Radisson Hotel Group’s brands in Brazil, including Radisson Blu, Radisson, Radisson RED and Park Inn by Radisson. The two companies have enjoyed a longstanding relationship in Brazil that now includes 16 hotels in operation.

  • Urban Juve 

Health and beauty consumer packaged goods company The Yield Growth Corp. announced that it ships its first products to OMG Colombia, the subsidiary of Organic Medical Growth OMG3 Inc. (“OMG3”) in Latin America, based in Colombia, as part of a 5 year distribution deal for Yield Growth’s Urban Juve skin care line. Today, 1,800 products are being shipped, in partial fulfillment of OMG’s first product purchase order in anticipation of imminent completion of regulatory approval to sell Urban Juve products in Colombia and progressively in other parts of South America.According to Goldstein Research, the Latin America cosmetics market reached a value of USD US$31.98 billion in 2017 and is anticipated to grow at a CAGR of 4.49% during the forecast period 2017-2025.OMG3 is in the process of distributing Urban Juve skin care products in Colombia and other countries of Latin America. Through its Colombian partner Ortix, OMG has access to a distribution channel of over 44,000 pharmacies in South America and has partnered with on-demand delivery giant, Rappi, to sell products through its e-commerce platform. 

  • GM 

US carmaker General Motors has decided to exit Thailand market.The brand will withdraw the Chevrolet brand from Thailand by the end of 2020, and said that China’s Great Wall Motor (GWM) has agreed to buy over its manufacturing plants in Rayong.GM’s co-ordinated retreat is part of the company’s plan to exit unprofitable markets including Europe, while focusing on North America, China, Latin America and South Korea. With the planned sale of its Thai plant, GM has essentially given up on the rest of ASEAN as well, as the Land of Smiles is the company’s regional hub.GM is “focusing on markets where we have the right strategies to drive robust returns, and prioritising global investments that will drive growth in the future of mobility,” especially in electric and autonomous vehicles, GM chairman and CEO Mary Barra said in a statement. 

  • Collinson

Interpublic Group agency Golin announced a new client partner to its international roster. Leading travel loyalty and benefits brand, Collinson, appointed Golin the global PR and communications Agency of Record (AOR), following a competitive pitch. The partnership will be led via a dual hub model from the Golin London and Golin Hong Kong offices, and the work will begin immediately.As AOR, Golin will head up PR and communications for Collinson with particular focus in  Brazil, China, Hong Kong, India, UAE, the UK and the US; with further markets to be activated in Europe and Asia. The agency’s first charge will be to build awareness of Collinson’s integrated expertise in loyalty and travel experience, showcasing the group’s breadth of capabilities under one single brand voice and messaging.

  • Fazenda Futuro© 

Brazilian plant-based startup Fazenda Futuro, recently valued at US$100 million, will launch vegan sausages made with a seaweed skin for crispiness next month. The sausages are made with a blend of pea, soy, and chickpea protein with beetroot added for a “rosy color​”. The products are free from GMO ingredients, food colorings, artificial flavors, or enhancers and the pork flavor comes from natural flavors and spices. They are coated with a neutral-tasting seaweed ‘skin’ that emulates the crispiness of traditional pork sausages.The sausages, which will launch in April in Brazil and the Netherlands, have a 17% protein content and add to Fazenda Futuro’s portfolio of products consisting of its Futuro Burger, ground meat and meatballs.Although Fazenda Futuro is a newcomer – it was founded in May last year – it has quickly made a name for itself in the plant-based category. In July last year, the startup received its first round of investments with Monashees and investment firm Go4it Capital acquiring an 8.5% stake for US$8.5 million. The transaction valued Fazenda Futuro at around US$100 million.The company was founded by Marcos Leta, a Rio de Janeiro-based food entrepreneur and investor. 

JOIN PORTADA’S KNOWLEDGE-SHARING AND NETWORKING PLATFORM: To find out about Portada’s new networking solutions targeting the decision makers of the above campaigns, please contact Sales Director Leslie Zambrano at Leslie@portada-online.com.

  • MasterChef

Endemol Shine North America has appointed award-winning licensing agency Tycoon Enterprises to serve as its exclusive licensing agent for the “MasterChef” television property in Latin America. MasterChef’ is one of the most successful food format in the world with over 60 localized versions across the globe including 10 in Latin America alone.Tycoon Enterprises will expand the “MasterChef” franchise in key categories including food and beverage, cookware and live experiences. Endemol Shine Brazil will continue to represent the brand in their market independently.In addition to “MasterChef,” the partnership will also look to explore opportunities in all categories for Endemol Shine series “¿Quién es la máscara” (“The Masked Singer”), “Te la Juego” (“Deal or No Deal”), “Fear Factor” and “Wipeout” in Mexico. 

2020 promises to be an exciting year in marketing. We asked brand and media agency executives that are part of the Portada Council System where they see the main challenges and opportunities.

 

As the new year fast approaches, Portada touched base with brand marketers and media agency executives, members of Portada’s Council System. We asked them what 2020 could bring in terms of challenges and opportunities. Among the most alluring opportunities and/or challenges, they cited: preparing for a world without (or a smaller) Facebook, more proprietary data for brands, efficient cross-screen metrics, marketing in a divisive political scenario, and finding synergies between Hispanic and general marketing campaigns.

 

2020 opportunities: Preparing for a world without (or a smaller) Facebook

2020 opportunities expertMarketers’ reliance on social media as a marketing and lead-generation tool has been parallel to Facebook’s rise to social media heaven. But has the social media giant reached its zenith or, even worse, is it starting to decline? “How to future proof my business in a world without or a smaller Facebook. In performance marketing, Facebook is still king, and also in terms of reach and signals of consumers’ interests and intent. What happens if Facebook changes? Or if there is regulation? Or if it doesn’t enjoy the popularity of generations like Z and beyond? This is more of a longer-term challenge, ” says John Sandoval, Senior Brand and Latino Marketing Manager at Intuit.

How to future proof my business in a world without or a smaller Facebook. In performance marketing, Facebook is still king, and also in terms of reach and signals of consumers’ interests and intent. What happens if Facebook changes? Or if there is regulation? Or if it doesn’t enjoy the popularity of generations like Z and beyond?

 

Brands need more ownable and proprietary data

2020 opportunities expertTo Peter Lee Brown, Brands & Communications Strategy, at Nestle, “Data has become commoditized, brands need more ownable, proprietary data“. Related to this challenge, Brown sees an opportunity for brand marketers in terms of “lean innovation and in-housing capabilities”, as he expects them to “lead to greater speed, creative expertise, and control.”. According to Brown in the current scenario of perpetual disruption, “brands can drive disruption and become challengers.”

Ariela Nerubay, Chief Marketing Officer at Curacao, also cites disruption, in this case in the retail space as an alluring opportunity: “Disruption of the retail in-store experiences to drive traffic to physical stores.”

 

2020 opportunitiesIf you are interested in joining the Portada Council System, our year-round knowledge-sharing and networking platform, please contact us here if you are marketing services supplier and here if you are a brand marketer.

 

Making second-generation Hispanic campaigns attractive to non-Hispanics…

Successful marketing to the LatinX consumer (second and third-generation Hispanics) is paramount to the progress of Corporate America in 2020 and beyond. Ariela Nerubay, Chief Marketing Officer at Curacao, tells us that “How to develop targeted campaigns for the 2nd and 3rd gen Hispanic on general market media that also attracts non-Hispanics” is one of the main challenges for her company in 2020. Similarly, she also cites developing a “lead generation strategy for Hispanic and non-Hispanic customers with same creative” as a challenge and opportunity.

 

…in a world where it is increasingly “not good” to be the “other”.

Marketing in a politically convoluted environment that is often divisive has been an important topic at Portada Council System workshops in 2019. Going into 2020 it will continue to be a challenge for brand marketers. As Intuit¨s John Sandoval notes “Specifically to multicultural marketing, in a country and increasingly in a world (last week’s UK election) where it is ‘not good’ to be the other or a minority or a population group other than the ‘mainstream’, how do we get the resources, attention, etc, from across the landscape? What if Trump is re-elected for another 4 years?”

 

Cross Screen Measurement to understand Reach and Frequency

The ascent of video marketing, partly a result of the substitution of TV media budgets by video, is bringing in more 2020 opportunities for media buyers. Darcy Bowe, SVP, Media Director, Starcom USA tells Portada that “cross-screen measurement that allows us to understand overall reach and frequency, including understanding where truly incremental reach is being driven” is an important opportunity for efficient media buys in 2020. Bowe is part of Starcom’s Video Center of Excellence, where she focuses on investing in all video media as well as creating content and building integrated programs in the video media space on behalf of her clients.

Given the range of CPMs and creative units across media types, how do we value an impression in each type and how does that impact ROI?

Bowe also notes that, given the range of CPMs and creative units across media types, it will be important to develop solutions for how impressions should be valued in each type and how this impacts ROI. To resolve the relationship between performance and branding (awareness) will be another challenge: “How can we best create media plans that balance targeting the most likely consumer to interact & transact with the brand as well as find broad reach to create awareness?”

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