The pro-Trump mob that stormed the U.S. Capitol on January 6 was mostly incited by social media driven fake news. It again became blatantly evident that a repluralization of media and a commitment to facts as a public good are crucial to the stability of the U.S. democratic system.Enter Corporate Social Responsibility: Brands and media buyers at agencies should be under pressure to direct advertising to media properties practicing professional journalism. Media dollars should also be directed to underserved communities. Learn how UM , Cadillac and Realogy balance the reach vs. responsibility/purpose driven marketing trade off in media buys.
It is not surprising that the D.C. chaos has actually made many brands to take the decision of pausing social advertising. According to a 2019 study published in Science by MIT Sloan professor Sinan Aral and Deb Roy and Soroush Vosoughi of the MIT Media Lab. They found falsehoods are 70% more likely to be retweeted on Twitter than the truth, and reach their first 1,500 people six times faster. This effect is more pronounced with political news than other categories. Independent, truth-seeking professional journalists apply reporting methodologies and a code of ethics that makes them accountable and transparent. Corporate social responsibility should make sure that brands advertise in trusted media properties.
However, brand marketers and the media agencies that cater to them not only need brand safety but also reach at a low cost for media buys to be efficient and ultimately obtain leads and sales.
News Sites: How it Works in Practice…
David Queamante, SVP, Client Business Partner, UM Worldwide tells Portada that when he worked at “an Automotive brand, recently, we saw that News Programming has a high index among people who earn the income we wanted to see, and who buy the vehicle segments we were promoting. However, on the Finance brand that I focus on currently, we see that News Programming indexes below 100 for people who will be in-the-market for our type of loan in the next 12 months. I still try to keep News programming as part of the buy, but I’m limited in how much support I can put behind that content when other programming indexes much higher for that target.”
I still try to keep News programming as part of the buy, but I’m limited in how much support I can put behind that content when other programming indexes much higher for that target.
Queamante add thats “when we run ads for this company on Social Media, we see that our Cost-Per KPIs is much lower than what we see when we run display ads anywhere else. At the end of the day, I can’t avoid Social Media without lowering my leads and visits. Now, we work very hard with our paid social buyers to avoid controversial/divisive posts and content as much as possible.”
At the end of the day, I can’t avoid Social Media without lowering my leads and visits. Now, we work very hard with our paid social buyers to avoid controversial/divisive posts and content as much as possible.
Journalist Powered Content Ratings…
Separately, IPG Mediabrands, the owner of UM, has agreed to begin using NewsGuard’s journalist-powered content ratings system for its digital news media buys in the United States, and other key markets. NewsGuard — which was founded by news media pioneer Steven Brill as a solution to the deluge of disinformation being promulgated by questionable publishers and sources — relies on human intelligence as opposed to machine-learning algorithms to detect, organize and rate the veracity of news and information publishers. Many brands and media agencies recognize that corporate social responsibility includes advertising in trusted media properties. IPG/ Mediabrands plans plans to use the ratings as part of its programmatic media buys made on news and information websites. “Our partnership with NewsGuard has already helped expand the scope of quality inventory available while ensuring ads remain in brand-safe and brand-suitable environments,” says Mediabrands Global Brand Safety Officer Joshua Lowcock said in a statement announcing the expansion of its agreement.
Corporate Social Responsibility: How Diversity Media Buys Work in Practice…
Another demand consumers have for 2021 is that brands should support media properties that target diverse and underserved audiences. Some members of the brand marketing community agree: “Inclusivity in messaging should be substantial and authentic, but also should include investment in media targeting underserved communities”, says Jason Riveiro, Senior Director, Global Growth Markets & Inclusion tells Portada.
How does this work in practice? Alexis Kerr, Cadillac’s Head of Multicultural Marketing | Multicultural Strategy, Content and Execution, notes that she has found creative ways to nurture her multicultural media partners to ensure they serve her in various different ways vs just ROI. “Media partnerships like Hispanicize and Revolt are great examples of how partners have been able to work with us to meet those goals. We have increased our spend to support diverse communities and partnerships,” she asserts.
MediaBrands has made it an internal mandate to increase or improve our investment on Diversity-Owned media partners. However, we don’t want to just pick an arbitrary % of the media budget.
Custom Solutions that Balance Reach vs. Responsibility
Corporate social responsibility should include that brands advertise in trusted media properties. UM’s David Queamante notes that his agency has worked hard to build custom solutions that balance reach with responsibility by making it easier to identify and work with Diversity-owned and Diversity-serving media partners, while still delivering on campaign goals and KPIs. “MediaBrands has made it an internal mandate to increase or improve our investment on Diversity-Owned media partners. However, we don’t want to just pick an arbitrary % of the media budget. It may not be possible to spend a certain amount of money with diversity-owned partners – many of them lack the scale that non-Diversity-owned partners have. Due to this lower scale, investing an arbitrary amount with these partners may also have negative impact on the campaign reach and exposure to our target audiences.
Corporate Social Responsibility: A Catalogue of Diversity Owned Partners
Queamante adds that the first thing he does is to “start with a database that one of our internal agencies (MAVEN) maintains and updates several times a year. This catalogues Diversity Owned partners across more than just ethnicity. It includes Veteran-owned, Women-owned, Disability-owned and more. The second step involves to “match the media partners on this list with our custom targets; we call them High Value Audiences (HVA). We identify these audiences using our Acxiom data stack, and we’re able to match these audiences back to media behavior. Based on the HVA media consumption of these Diversity-owned partners we’re able to create investment benchmarks that are specific to each brand and their unique audience.” “Since these benchmarks factor in HVA media consumption, they have a positive impact on reach and exposure levels for our target.”, Queamante concludes.
What form will the advertising mix take once COVID-19 is over? How and where should brands advertise to boost E-Commerce? Should they trust Live Sports to come back in a major way? How can brand marketers best approach Data Privacy Regulations, First Party Data and Personalization?…. Advertisers have many questions as they go into 2021 and beyond. Check out the answers provided by brand executives in the Portada network and our editorial team. A Q&A reflecting the Advertising and Marketing Zeitgeist.
MY FIRST QUESTION is WTF I can’t plan much in this environment. When will COVID-19 finally be over?
ANSWER: Don’t expect live to resemble anything close to what we had in 2019 until the second half of 2021. Good to know: Customers are the lifeblood of business and advertising is the main tool to attract new customers and an important way to retain them. In 2020 business conditions changed dramatically due to COVID-19. This substantially impacted advertising with an expected decrease of U.S. advertising revenue of 17% for 2020 (excluding political advertising, Magna Global);a miserable advertising year.
OK, but EVEN WHEN COVID IS OVER, how will the new normal impact my advertising and marketing?
ANSWER: Whether you are a company that is not directly facing the consumer or a Direct to Consumer firm, E-Commerce marketing and advertising will be much more important for you compared to pre-Covid-19 levels.(e.g. check out how automotive marketer Cadillac has worked proactively to adapt its advertising and marketing.) Good to know: COVID has brought enormous changes in the way consumers inform themselves and buy products and has accelerated digital transformation and e-commerce. In January 2020, eMarketer forecast total U.S. ecommerce sales would reach US $674.88 billion in 2020, but a revised estimate puts that figure at US $794.50 billion or 17.7% more than expected! E-commerce skyrocketed from 12% to 16% of retail sales in only one year. Note that there is still a lot of room for e-commerce growth!
On the Relentless Ascent of E-Commerce Focused Advertising
I can see that it makes sense to put more money to work to grow E-COMMERCE, BUT WHERE EXACTLY SHOULD I DO THIS? Should I invest in advertising to attract buyers to my own website, to a third party marketplace or to direct them to social selling?
ANSWER: Most brand marketers in the Portada knowledge-sharing network see sales channels as complementary and not competing. “The key is to be omnichannel in order to be where customers need us to be,” one brand marketer says. Another thing to take into account in your advertising is that third party marketplaces (e.g. Amazon, but also Target or Walmart) are impacting brand messaging. It is crucial for brands to be in control of messaging. As social media becomes even more connected with e-commerce, Influencer marketing is becoming more sales driven. (According to Statista, global Instagram influencer marketing amounted to US $ $8,08 billion in 2020.) Good to know: Amazon (37% sales growth in the third quarter of 2020 (Q3), vs Q3 2019) and other online retailers including Best Buy (23% Q3 2020 vs. Q3 2019 ) and Target (21.3% growth) have gained an enormous power as third party marketplaces who provide data and marketing services to brands. So have delivery and pick-up services like Instacart (grocery), Grubhub (restaurants) and others. All these intermediaries offer marketers opportunities to advertise their products on their apps and websites. In addition, social media properties are playing a crucial role in sending shoppers to company websites and also offer direct sales integrations (e.g. Instagram has just debuted shopping capabilities within its recently launched Reels feature). Magna estimates that driven by ecommerce and advertisers looking for “lower funnel” attribution, U.S. digital media revenue grew by 10% in 2020, reaching US $140 billion.
WHAT ABOUT THE TOP OF THE FUNNEL. Is there no place for branding and awareness anymore?
ANSWER: “While digital media and e-commerce have changed and shortened the customer’s path to purchase, brand awareness continues to be the basis for consideration and purchase. Broadcast TV and other traditional media forms, including Out of Home Advertising, continue to have major reach and appeal for advertisers.
Good to know: Magna forecasts that in 2021, with a COVID vaccine and the postponed Olympics, global advertising will rebound. The agency forecasts the global ad spend to increase by 7.6% to US $612 billion. Linear media, which is mostly awareness-top of the funnel oriented, will grow by 3.5%.
Where is Experiential Marketing Going?
Corporate America used to utilize in-person Live Sports events to obtain high reach and engagement. Will that again be the case once COVID is over or will VIRTUAL EVENTS, INCLUDING E-SPORTS, STILL PLAY A MAJOR ROLE?
ANSWER: “You will definitely see more of a mix as the world returns to normal of virtual vs. in-person events relative to how things worked prior to Covid,” Michael Goldstein, VP and Head of sponsorships North America at Mastercard recently told Portada.
DATA PRIVACY REGULATIONS are making it more difficult to target consumers. How can I solve this in 2021 and beyond?
ANSWER: Contextual targeting technology provides a data privacy-friendly alternative to behavioral targeting, It can help a brand understand what a consumer might like without needing personally identifiable information. Contextual targeting uses linguistic elements and the advertisements themselves are selected and served by automated systems based on the context of what a user is looking at (e.g. check out Tecate’s new campaign). Contextual targeting can also be useful for performance marketing efforts. Good to know: Data privacy regulations and third party cookie phase-outs have digital advertisers scrambling for solutions to maintain campaign efficiency and scale without the regulation compromising behavioral targeting technology.
Nice to know…but I think my company should also obtain FIRST PARTY DATA as a major way to get customer insights. Don’t you think so?
ANSWER: Brands can gain a lot by unifying first-party data sources into a single customer view in a Customer Data Platform, CDP, although the platforms may not necessarily do everything a marketer expects them to do. Good to know: Marketers will need to shift from reliance on third-party data for audience targeting and campaign measurement to a new model improving the way they collect, manage, and activate their first-party data. Ogilvy head of experience technology, Jason Davey, sees digital marketing strategies shifting to prioritize first-party data as the looming cookie crisis gets real. Due to technological advances, multi-channel data collection, attribution, curation, enrichment and decisioning has become more accessible and affordable.
How does this all connect with my increased need to PERSONALIZE CUSTOMER COMMUNICATIONS?
ANSWER:The appropiate use of CDPs will continue to drive the hyper-personalisation trend, with more interest in Artificial Intelligence including predictive data analysis.
Sounds interesting. Another question I have is if I should invest more in CONNECTED TV (CTV). While the audience watching CTV is huge why are CTV advertising investment volumes so small?
ANSWER: CTV is clearly on the rise, as are other forms of video advertising, yet more sophisticated CTV measurement options “are key – and that will allow us to measure viewership and frequency across screens more easily,” Darcy Bowe, SVP, Media Director at Starcom USA tells Portada.
Good to know: CTV household penetration lies at 80% and Pay-TV’s at 62%, yet CTV advertisingis expected in 2021 to amount to only 15% of total US TV ad spending.
How can Segment and Purpose Driven Advertising Really Work?
How should I approach marketing toward ETHNIC POPULATION GROUPS in 2021 and beyond?
ANSWER: “The change that I would like to see for 2021 and beyond is to move away from total market strategies that try to find places of commonalities and a move towards diverse segment lead strategies, that are intentional and focused on the most authentic and relevant messages to build brand affinity and product usage with diverse segments as the designed target”, says Larissa Acosta, Integrated Marketing Consumer + Diverse Segments Team Leader at Wells Fargo.
Good to know: Over the last decade Corporate Americas has used the Total Market approach (TMA). This approach integrates diverse segment considerations and mostly leads to a full cross-cultural approach and campaigns. Critics note that the TMA is not effective for multicultural marketing and that the real reason companies use TMA is that they realize savings in their advertising expense and marketing organizations.
OK. I do want to TARGET THE HISPANIC POPULATION specifically and support media properties that cater to those communities. How can I advertise toward the Hispanic segment in a cost effective way. I mean Facebook and other platforms tend to be cheaper and have a lot of reach?
ANSWER: “We have found creative ways to nurture our multicultural media partners to ensure they serve us in various different ways vs just ROI. Media partnerships like Hispanicize and Revolt are great examples of how partners have been able to work with us to meet those goals. We have increased our spend to support diverse communities and partnerships.”, says Alexis Kerr, Head of Multicultural Marketing | Strategy, Content and Execution, at Cadillac.
Good to Know: Brands are often asked to invest in media properties that serve diverse communities. Yet, these media properties may not have enough reach to justify a media spend on ROI terms. (It also has to be said that while the cost of advertising in social media is lower, it not always guarantees brand safety.)
RACISM AND INEQUITY are major factors behind civic unrest. How should I be mindful of this in my brand’s advertising?
ANSWER: “It is counterproductive for a company to advertise if it does not commit to social and economic change by incorporating diversity, racial justice and social equity mandates and their execution. This should include executive leadership and personnel selection, an ecologically sound production process as well as diversity in vendors. Good to know: Covid-19 exposed a historic cycle of systematic racism and oppression as civil unrest hit many U.S. cities in 2020. More than 35% of young consumers (aged 19-26) have stopped shopping from a brand who has not spoken out against racism (Oberland Survey, August 2020).
MarTech investments are a key driver of the communications industry, both for entrepreneurs and investors. Recently created NUMATEC comprehends more than 300 employees in 22 countries, and is led by a team of entrepreneurs who have successfully founded and exited multiple ventures, and now pool their resources and companies under one umbrella. We interviewed Giuliano Stiglitz, CEO of NUMATEC, to better understand his innovative company and learn about the MarTech (Marketing Technologies) sectors he sees the most potential for growth in. Numatec particularly seeks to grow in.
Corporate MarTech budgets will continue to grow globally. This is one of the main reasons why industry veteran Giuliano Stiglitz recently founded NUMATEC. According to Stiglitz the following four MarTech subsectors are particularly primed for growth:”First, AI-If you go beyond the fact that it is perhaps the most misused word in the industry, in its truest meaning, AI is the driving force behind automation and evolution of many of the platforms used today.” Second Stiglitz sees eCommerce as eCommerce is playing an important role “and its growth was accelerated by the pandemic and there is a growing demand for services that help eCommerce businesses succeed.” The third major growth sector for MarTech Investments is Customer Data: “Everything that has to do with capturing, understanding and harnessing the power of user specific data is key. Lots of growth here as we are just at the beginning of this trend.”. Finally, Stiglitz expects substantial growth in CTV and “generally speaking TV converting to Digital, still a lot more to go (hence lots of growth) to bring TV 100% to the ‘other side’”.
AI is the driving force behind automation and evolution of many of the platforms used today.
NUMATEC’s MarTech Investments
NUMATEC’s current portfolio of companies is focused on the growth trends described above as its subsidiary companies including Si Señor agency, Cookie Lab and The Tech Partners offer many of these services. NUMATEC has allotted a war chest to continue its rapid expansion investing in MarTech, seeking other like-minded founders who wish to join the group and fuel growth. The main criteria for M&A will be whether companies complement the current stack, integration and over-arching strategy. Geographically, Stiglitz sees a huge potential in Latin America: “Despite the fact that our origins are in LatAm and some of our businesses have been operating for quite some time in the region, there are still a few markets where we haven’t entered yet, notably Brazil, and we intend to cover the entire region. We are also very excited about expansion in the U.S. and Europe, where we see a huge potential for our services.”
We still see a huge potential in Latin America, where some of our business have been operating for some time.
Stiglitz tells Portada that NUMATEC typically takes a majority stake of between 51% and 100% in the companies it invests in. “Sometimes we buy a stake in an existing company, sometimes we fund an entrepreneur who wants to start his or her own business and sometimes we incubate the business in-house. We provide guidance from Miami, but we incubate globally including Europe and LatAm.” Stiglitz says NUMATEC “typically is able to achieve profitability very quickly, and expects returns within a one to two-year timeframe.” NUMATEC generates revenue through its investments and the services it provides to its portfolio companies.
We typically are able to achieve profitability very quickly, and we expect returns within the first two years.
Stiglitz prefers not to limit or discourage potential partners by sharing a specific number to describe the maximum or minimum NUMATEC will invest in: “I will tell you though that we have invested as little as US $100,000 to launch a business and as much as US $1,000,000. The range is really quite broad.”
MarTech Investments: Holding Company and Investor
Asked about the ultimate goal of NUMATEC (e.g. selling its portfolio companies, increase in size etc.), Stiglitz answers that he likes to say that NUMATEC has two or perhaps three souls. “On one hand, we are a holding company and an investor so our ultimate goal here is to maximize shareholders returns. We do that through acquisitions, through funding exceptional entrepreneurs and by incubating new companies in-house. We have a well-oiled and proven methodology, and we won’t stop doing that. This relentless activity has resulted in quite a diversification: by having different lines of businesses (within the digital marketing space) and by operating in such a diverse group of countries. We can clearly see some buyers interested in what we have built, but that said, we are not currently looking for buyers. We do see a lot of growth ahead for several years and we will keep our options open to other avenues, including an IPO. “We are also the perfect partner for Martech companies eager to attain more market share and accelerate their growth in the markets where we operate. We want to be seen as the market leader in channel partnerships and distribution for top-tier AdTech and Martech companies; this is one of our ultimate goals that goes hand in hand with the first one. Last but not least, we want to be seen as the ideal investor for the most talented entrepreneurs in our industry. By helping a new generation of founders achieve success, we’ll be able to achieve our goal and we’ ll have accomplished something meaningful in the process.”
We want to be seen as the market leader in channel partnerships and distribution for top-tier AdTech and MarTech companies.
Providing Brands with a Wide Array of Marketing Services
By undertaking MarTech investments, NUMATEC intends to build the world’s premier network of service providers for today’s global brands. Stiglitz emphasizes that NUMATEC’S objective is to provide brands (corporations) a wide array of marketing services through different NUMATEC portfolio companies. “Our objective is two-fold: the first, strategically investing in technology enabled service companies in the Martech ecosystem, and the second, partnering with the best available technologies to accelerate growth and distribution. By doing this we will be able to provide, as a group, the most complete set of services that compete with industry leaders,” he concludes.
A question that is keeping experiential marketers up at night is what form events and experiential marketing will have once the world returns to normal. Michael Goldstein, VP and Head of Sponsorships North America, Mastercard and Michael Tasevski, VP, Global Sponsorship at Scotiabank provide their points of view. KPIs to measure virtual events success and more….
What do experiential brand marketers belonging to Portada’s knowledge-sharing system think about the mix of live and in-person events in a post-covid world? “My thinking is as follows – you will definitely see more of a mix as the world returns to normal of virtual vs. in-person events relative to how things worked prior to Covid,” Michael Goldstein, VP and Head of sponsorships North America, at Mastercard tells Portada. “Beforehand it was almost all in-person but we have learned that virtual events really do bring something to the table and consumers and customers like them. In-person events will still be there and be a big focus, but it will be more of a mix between the two in my POV,” Goldstein adds.
You will definitely see more of a mix as the world returns to normal of virtual vs. in-person events relative to how things worked prior to Covid.
Another experiential brand marketer in the Portada network says that “Everybody is clamoring to go back to in-person, but virtual events will maintain an important role after the pandemic. Overall, we think the whole balance between sports events, consumer interactions and brands will change substantially and will be more based on digital communication than before COVID. For now, lots of brands don’t want to overstep. No one wants to be the first one out there to be doing something unsafe. e.g. build a big stadium.”
Opportunities in VR and AR….
Mike Tasevski, who manages global sponsorships at Scotiabank, seems to agree: “We dont see affinity, engagement and passion towards sports and soccer changing, it will always be there. What we do see is a continued shift in how people consume sports and soccer and how properties and brands interact with their fans. We need to continue to create new innovative ways to provide experiences and see opportunities in virtual and augmented reality.”
We need to continue to create new innovative ways to provide experiences and see opportunities in virtual and augmented reality.
Tasevski, whose main responsibilities at Scotiabank include experiential marketing, adds that he is using “loyalty programs targeted on customer offers and growing benefits along with technology like virtual reality and augmented reality. When we look at virtual and augmented there is an opportunity from a revenue stream where you can purchase products branded products and so forth.”
Virtual Events are Here to Stay
For most experiential brand marketers consulted by Portada virtual events are here to stay. Virtual event attendees seem to agree: according to a just released survey by Eventbrite called 2020 “Inside Look Report” which analyzes more than one million global virtual experiences, “for the foreseeable future, virtual events are highly likely to remain both necessary and popular. Across the board, half of the respondents in the survey said they plan to attend both virtual and in-person events when it is safe to gather again.” Nearly one in five men (19%) went as far as to say that online events and social platforms have allowed them to forge social connections better than they would have made in real life. “Perhaps the silver lining of this pandemic is that online events have the power to globally engage communities in new ways, helping creators bring people together from small town America to far reaching corners of the world,” says Julia Hartz, co-founder and CEO of Eventbrite. “That’s something to celebrate as we continue to work toward the safe return of in-person events,” she adds.
Half of the respondents, said they plan to attend both virtual and in-person events when it is safe to gather again.
Experiential Marketing: KPIs to Measure Virtual Event Success
A key question in experiential marketing that has arisen during the COVID pandemic is how key performance Indicators related to engagement, awareness and conversion should be measured at virtual events (vs. in-person events). Of course, as Juhi Purswani Content Developer at Event Management Company Hubilo notes: “unless the audience feels engaged, your virtual conference is a big FAIL.”
The overall approach to virtual event KPIs, according to event marketing experts in the Portada network, is to look at it across the full funnel from awareness down to trial. While awareness is always a primary metric and objective, savvy experiential marketers are equally interested in measuring the consideration and conversation aspects of the program or promotion. Additionally, whereas awareness at in-person events was once measured by attendance figures, now it’s a matter of how long you are keeping them engaged and what actions the consumer is willing to take based on this experience.
We need to continue to create new innovative ways to provide experiences and see opportunities in virtual and augmented reality.
The measurement of conversion (e.g. product sales online and in-store) has also shifted with the preponderance of virtual events. Metrics are no longer about the consumer on-site or at the event, but rather the actions they are re taking during or, in many more cases, before the experience.
Connected TV Advertising Investment is growing at triple digit figures in 2020. Yet, the level of investment is nowhere near the CTV audience number, which is already larger than that of Pay-TV. Media buyers at Starcom USA and GroupM tell Portada that better reporting and more sophisticated measurement options are key to further growth.
“The shifts in media properties were in some ways, driven by the audience’s shifts in consumption. More streaming options were considered, and more eCommerce partners were rotated in, ” David Queamante, SVP, Client Business Partner, UM and responsible for developing and implementing the national media strategy for Quicken Loans, tells Portada.
CTV Advertising Investment is Skyrocketing…
Roku, which is turning into something like the “cable box” of streaming TV, last week announced that Roku’s Platform business – which includes advertising and content distribution revenue – saw its strongest quarter in the segment’s history, with revenue leaping 78% YOY to US $319 million. Roku attributed the record numbers to strong growth in advertising as brands embraced connected TV advertising platforms, and the number of first-time advertisers more than doubled in Q3.
Demand side platform The Trade Deskreported in its Q3 earnings that programmatic CTV ad investment on its platform grew by 100% YoY, substantially helping overall revenues to increase from US $164 million to US $216 million in the third quarter of this year.
Magnite a sell-side ad platform that encompasses Rubicon Project and Telaria, announced last week that CTV ad revenue was up 51% year over year to US $11.1 million.
Regarding ad impressions, according to the latest report from omni channel advertising platform Innovid, CTV ad impressions grew 55% year-over-year from 2019 for the third quarter.
… but in 2021 CTV Advertising Investment will still only amount to 15% of Total TV Advertising …
“We analyze audience trends and are seeing that audiences continue to move to CTV platforms. This trend has been occurring steadily for the past few years, but has increased exponentially with the pandemic as people stay home more and seek out new content,” says Darcy Bowe, SVP, Media Director at Starcom USA in Chicago. “With increased CTV viewership, and the continued decrease of linear viewership, it is important that we evolve our media plans to follow people where they are watching content – and in turn, where they are more likely to see our clients’ ads,” Bowe adds.
CTV household penetration is lies at 80% and Pay-TV’s at 62%.
In fact, in 2020 the number of CTV households has become substantially larger than the number of PTV households. US. CTV household penetration is currently approximately 80% , while pay-TV (cable and satellite) penetration lies at 62%. Of course, this has led to a surge in CTV advertising investment, because ad dollars chase eyeballs. Still, even taking into account the current high growth rate, EMarketer estimates CTV ad spending will reach US $10.81 billion in the US in 2021 – up 56% from two years earlier, and representing around 15% of total US TV ad spending. This makes little sense when you consider that U.S. consumers watch more CTV than PTV.
Despite the high growth rate, CTV ad spending is expected to only represent 15% of total U.S. TV ad spending in 2021.
… and Media Buyers Ask for Improved Reporting and Measurement
One of the reasons CTV advertising investment is not growing at an even higher rate is that the inventory is fragmented, making it difficult to measure and plan. Ad fraud and frequency capping are other serious concerns. Advertisers often do not get the same level of reporting in their CTV campaigns compared with linear TV as CTV reporting often centers around ad-impressions. “When you do a TV buy, you know the pod position you’re in, you know the time your commercial ran, you know the show, you know the content of the show, which episode number it is. We need that same level of detail that we’re accustomed to,” Jessica Brown, director of digital investment at WPP’s GroupM, recently told Beet.TV.
Starcom’s Bowe adds that “more sophisticated measurement options are key – and that will allow us to measure viewership and frequency across screens more easily. It’s important to understand when a person sees our ads across Linear TV and CTV, let alone across all screens. However, we are already starting to see the impact of co-view measurement in our media plans as we’re able to understand the total number of impressions CTV campaigns are delivering vs. relying on the number of ads served as a proxy for impressions.”
We are starting to see the impact of co-view measurement in our media plans as we’re able to understand the total number of impressions CTV campaigns are delivering vs. relying on the number of ads served as a proxy for impressions.
The news that Entravision is purchasing Cisneros Interactive marks another chapter in the consolidation of the U.S. Hispanic and Latin American digital media space. Six questions and answers: Acquisition price? The rationale for the transaction? How Entravision is substituting off-line revenue losses with digital gains and more…(This article has been updated on December 17, 2020 with new insights from industry sources).
Entravision and Cisneros just announced that Entravision has acquired a majority stake in Cisneros Interactive. 6 things to take into account about the transaction and what it says about the multicultural and Latin American digital marketing sector.
1. Entravision purchases Cisneros Interactive: What is the price of the transaction?
Neither the price of the transaction nor the size of the stake of Entravision in Cisneros Interactive was disclosed (other than it is larger than 50%) UPDATE: According to our sources, the transaction did reflect a full cash-upfront payment with remaining strong incentives to deliver stronger results over time. Moving forward both Grupo Cisneros and Entravision will run the business based on agreed operational and financial standards within the compliance required as a public entity.
A full cash-upfront payment with remaining strong incentives to deliver stronger results over time.
2. What is Entravision buying?
Currently, Cisneros Interactive’s portfolio consists of six initiatives:
– Representations: Facebook’s Authorized Sales Partner in Latin America: Cisneros Interactive is Facebook’s strategic partner in Latin America, at this moment with presence in 9 countries(Ecuador, Paraguay, Bolivia, Uruguay, Panama, Guatemala, Costa Rica, Dominican Republic and Puerto Rico). Cisneros Interactive in these markets offers advertisers and ad agencies local selling efforts support, agency training and local credit and payment. Cisneros Interactive also has sales partnerships in some Latin American markets with Linkedin and Spotify with which it reaches 17 markets.
– UPDATED: Digital Audio: Cisneros Interactive fully owns Audio.Ad, perhaps the largest digital Advertising network and the only Audio DSP in Latin America (Audio.trade). It additionally has the exclusive representation in Latin America of large audio publishers such as Tunein, PRISA’s programmatic inventory, Deezer, and podcast-giant Wondery. This unit has direct and strong synergies with AudioEngage, which is Entravision´s own digital audio network. – Mobile Video. Cisneros Interactive has a mobile video platform spearheaded by its JustMob business unit which also holds a strong alliance with Unity, the global mobile platform provider and with presence throughout 16 countries in Latin America. All Cisneros Interactive employees will remain with the company, with Victor Kong continuing as Chief Executive Officer, based out of Miami. Carlos Córdova will serve as COO of the company and head of all digital audio units.
3. What is the rationale for the transaction in the U.S.?
Major drivers are to obtain critical mass, more marketing muscle and economies of scale. Portada estimates, that digital advertising in English-language media targeting Hispanics (predominantly the LatinX market) rose to US $1.07 billion in 2019 (check out our recent Insights Report How brands engage U.S. Hispanics: New segmentation approaches). At least 80% of that amount is sold by Google and Facebook, leaving approximately US $210 million for other companies. Portada also estimates that advertising in Spanish-language digital media targeting Hispanics in the U.S.lied at US $350 million in 2019, with approximately US$ 70 million for non-Google/Facebook players. In the U.S. Hispanic market the main second tier players are Univision Interactive, NBC Interactive, Pandora and Spotify. Entravision digital revenues in the second quarter of 2020, were US $11.4 million. With the Cisneros Interactive acquisition and other acquisitions Entravision is attempting to step up and become a major player in the fifth of the market that is not dominated by Google and Facebook.
With the Cisneros Interactive acquisition Entravision is attempting to step up and become a major player in the fifth of the digital ad market that is not dominated by Google and Facebook.
If you add the fact that despite all the “diversity marketing” talk during COVID-19 there have been stronger declines in digital ad volume in the U.S. Hispanic advertising market than in the general U.S. market (e.g. CEO Walter Ulloa mentioned during the second quarter conference call that digital revenues were $11.4 million, which represents a decrease of 32% versus the same period last year), the need for consolidation through an Entravision Cisneros Interactive acquisition is imperative.
and Latin America?
The expanding Latin American digital media market is dominated by Google and Facebook who get at least 80% of the sales volume. The remaining sizable players are ad rep company IMS and video marketer Teads, and perhaps Spotify. Beyond these players, and some strong national market media, it can be said that there is no more “middle class” in the Latin American and U.S. Hispanic markets. Hence, the need of medium size players like Entravision and Cisneros Interactive to integrate.
There is no more ‘middle class’ among digital media properties targeting Latin Americans. Google and Facebook origin more than 80% of the market volume.
At this exclusive virtual event, Brand Decision Makers and Marketing Service Suppliers will share and accelerate knowledge on key topics including multicultural marketing, e-commerce marketing and marketing technologies.
4. Entravision Cisneros Interactive acquisition: Are both companies complementary?
By and large they are, as Cisneros Interactive has a strong footprint and client base in Latin America, it serves over 4,700 brands and agencies each month, and Entravision Digital in the U.S. There are some overlaps like Cisneros Interactive Audio Advertising company Audio Ad and Entravision’s Audio Engage. Although, the press release states there will not be personnel changes, some cost saving rationalization in some units going forward may make sense.
5. How is Entravision expanding its digital business?
For a number of years Entravision has worked on a digital strategy to meet market demand. In 2017, Esteban Lopez Blanco, at the time Chief Strategy Officer at Entravision told Portada that he “expected a growth rate of the digital business of more than 40% for many years to come.” At the time he estimated the share of digital revenues in Entravision’s overall revenues to climb from 20% to 30% by 2019 or 2020. UPDATED: For 2021, Entravision expects the ratio to be above 50% of revenues.
Earlier this year, Entravision announced the launch of Entravision Digital , which consolidates its business units in the US and abroad and marketing technology businesses under the Entravision brand. The company has worked over the past several years to build a portfolio of digital assets that possess digital reach, data insights and creative and programmatic capabilities. Entravision made its first foray into ad-tech when it bought Pulpo Media for US$ 15 million in 2014. In 2017 it bought Argentinean Martech company Headway , for a price insiders claim to lie between US $30 million and US $40 million, Headway includes AudioEngage, a digital audio advertising platform; ScrollerAds, an optimized video advertising marketplace; DataXpand, an international data management platform and audience marketplace with consumer insights. Entravision later bought Smadex, a programmatic, mobile-first, DSP services provider.
6. Does digital growth at Entravision compensate for off-line declines?
In the short term the answer is no, because right now all revenue types are declining at least in part due to the COVID-19 pandemic. The share of digital revenues on overall revenues was of 25.3% according to Entravision’s second quarter 2020 financial results. By far the largest part of Entravision’s revenue base is broadcast advertising (TV and Radio) which even before COVID-19 was having year on year revenue declines of at least 10%. In the words of CEO Walter Ulloa, those declines got bigger with the advent of COVID-19: “Television revenues in the second quarter were down 29% to US $27 million, compared to the prior year period due to the pandemic. National television advertising revenue was down 25%, while local advertising revenue was down 43%. Audio revenues were down 53% during the second quarter, compared to the prior year. Local revenues were down 52%, while national revenues were down 54% in the quarter.” For Q3 2020 In early August, Entravision’s Q3 television advertising business is pacing minus 8%, our radio business is pacing minus 34%, and our digital businesses are pacing minus 18% versus the third quarter of 2019.
For 2021, Entravision expects digital revenues to lie above 50% of overall company revenues.
Walter Ulloa, CEO Entravision, mentioned during the second quarter 2020 financial results conference call on August 4 that Entravision’s overall revenues decreased 35% to $45.1 million in the second quarter. Consolidated operating expenses were down 24%, and consolidated adjusted EBITDA was down 86% to $1.7 million, compared to $12.6 million last year.
Brands are increasingly being scrutinized regarding their response to racism, and inequity, an EthniFacts PICAT study reveals that 55% of consumers want companies to share values and ideals that unite America despite a cross-cultural trend to retreat into our own “Ethno-Racial Corners”.
EthniFacts, a cross-cultural knowledge and insights provider, has released findings from their syndicated 2020 PICAT (Personality and Intercultural Affinity) study. PICAT is a bi-annual national survey of American consumers that measures attitudes and behaviors through a cultural lens. Key insights include:
Cross-Cultural Trends – While social media and personal contacts have become more diverse (+5% since 2017) for all consumers, there is a marked trend among all ethno-racial groups to “retreat into our own corners and defend what is ours” vs. previous surveys. Many are feeling defensive and on edge with over 50% of Americans worried about saying something offensive (highest among 16-34-year-old Non-Hispanic Whites at 60%).
Overt Racist Incidences – Over 50% of all diverse respondents report a recent personal experience with racism involving themselves or a close friend/family member. Hispanic highest incidence is being criticized for speaking Spanish (57% higher), Asian American is being told to “go back to their country” (21% higher),” and African American is being falsely accused of criminal activity (69% higher).
Values that Unite Americans – Over half the country (55%) says companies should share and reinforce the values and ideals that unite Americans, an increase of 11 points since 2017.
There is an equal danger for brands in sitting on the sideline without a voice and in pandering while not “walking the walk” regarding social issues.
Social Issues that Motivate Buying & Loyalty – There is an equal danger for brands in sitting on the sideline without a voice and in pandering while not “walking the walk” regarding social issues. Worker protection and pay are the most important issue for 55% of the population and the overwhelming issue uniting all races and ethnicities. Differences exist with other issues making it critical for brands to understand their purpose and align their public stand on social issues with that purpose.
Admired Brands – Fifty-one percent (51%) of all consumers and 58% of Multicultural consumers are more likely to buy a product or service if that brand is perceived as standing for issues important to them. EthniFacts’ PICAT study has been tracking movement in brands that are most and least admired for aligning with personal values and ideals for 4 years.
This wave of PICAT was conducted among 2,189 online adults offering deep insights around consumer attitudes and behaviors surrounding COVID-19, social justice, and other key issues.
Automotive has been hit less hard than many retail sectors during the pandemic. Car makers have been innovating both in their relationship with dealerships as in the way they reach out to end consumers. To get a better understanding of the state of automotive marketing, Portada interviewed Pamela Arteaga, Global Marketing Manager Cadillac. Her take on brand-dealer relationships, customer outreach through non-physical channels, her Hispanic heritage, sales attribution models…and more.
The communication between car makers and dealers lies at the heart of automotive marketing. According to Arteaga, the connection between car dealerships and Cadillac has been tight throughout the pandemic. “We started to hear about the pandemic situation in China early on and we developed some best practices from China and we started tailoring material and using guidelines from our Asian and Chinese teams. These guidelines include the cleaning of cars. The use use of apps so that they don’t have to go to dealerships, pick up processes and other actions to connect with customers through non-physical channels.”
Automotive Marketing: Learning from China
Arteaga mentions “that one of the learnings from China was that through a joint effort of brand and dealerships they were doing events via social media like Facebook live and Instagram events. People went online to watch a review of the car, to learn about technologies etc. ”
In March 2020, just before most lockdowns were instituted, the automaker made its Cadillac Live service available in all 50 states across the United States. Those efforts have included launching online video sessions with brand representatives to explore cars, a service that saw a 50% increase in visitors once the pandemic started, WARC reported. Cadillac Live allows for the reservation of a time for a live agent to tell the prospective buyer about the details of the car. Information of the customer is taken and a test drive and information is shared with the dealer.
Online video sessions to explore cars saw a 50% increase in visitors once the pandemic started.
Arteaga specializes in brand strategy and is responsible for bringing brand and marketing consistency to Cadillac’s 9 international markets, including China, Canada, Middle East region, Mexico, Russia, Korea, Japan, Europe and Israel. Out of her work in Mexico she also derives insights that are useful for the multicultural market in the U.S. where she supports U.S. multicultural marketing which is led by Alexis Kerr, Head of Multicultural Marketing, Multicultural Strategy, Content and Execution at Cadillac.
Born in Toluca, Estado de Mexico, Mexico. Arteaga is a proud Mexican woman and mother to a 5-year old
living in Detroit. She graduated from Tecnológico de Estudios Superiores de Monterrey with a bachelor’s degree in Communication Science in 2003 and an MBA in 2014 from the same institution. Automotive marketing became her passion early on as she worked for General Motors Mexico for over a decade where she helped grow Buick, GMC and Cadillac as the Marketing manager and relocated to Michigan in January 2019 to take on her current role. According to Arteaga, to have a Hispanic-Latin American background can substantially help a brand marketer: “It provides more tools to be thoughtful and holistic about tactics. It also helps tailor messaging and strategy and to see things differently. We want to build a community We have been working for the last couple of years to bringing a face to our advertising but also to the people working on it in-house and in our agencies.. So that the customer feels we are on the same page and have a unique point of view that is tailored to them. ” “When it comes to Hispanic in the U.S., we want to make sure to be authentic and are not necessarily ROI driven.”
A Hispanic background provides more tools to be thoughtful and holistic about tactics and strategy.
Cadillac’s Pamela Arteaga will be one of the many leading brand marketing executives to speak at Portada Live Latin America. To find out about Portada’s new virtual knowledge-sharing and networking solutions at PortadaLive Latin America involving a myriad of brand decision makers, please contact Sales Director David Karp at David@portada-online.com.
Automotive Marketing: Unique Local Markets and Move to Digital
Asked about what changes she has seen in the markets she oversees over the last 6 months, Arteaga emphasizes that each market is unique and has its own nuance. “There are differences between Asia and America in terms of how consumers react to digital tools. Canada and U.S. have the Cadillac live online platform while China is planning to implement it.” Mexico has it for Chevrolet, and Cadillac is exploring to have it for Cadillac (Live) as well.
Arteaga adds that when it comes to the media mix there has been an overall move to digital -including retargeting, social, search and influencers – both in the U.S. and Mexico. “This is a trend that already surfaced before the pandemic, particularly when targeting the luxury consumer.”
Cadillac’s Multitouchpoint and Media Investment Optimization Tool
Sales attribution models also please an important role in automotive marketing. Cadillac uses a high propensity targeting tool that provides details on how likely prospects are to buy a Cadillac. ” We use both a multitouch and media Investment optimization tool,” Arteaga says. “Our M1 High propensity tool, allows to talk to customers from an audience perspective and follow them via offline and online media. These tools are advanced analytics or machine learning programs that look longitudinal over time examining across dozens of categories of variables and hundreds of individual independent variables. Dependent variables can be rotated, but most of the time it is sales. Outputs are ROI by media type, ROI by media type by model, ROI by Marketing activation (e.g. auto shows), Marketing budget needed to hit sales objectives, etc. These models are 85%+ accurate proven by back testing and a technique using an in sample and out of sample error testing.
Our M1 High propensity tool, allows to talk to a customer from an audience perspective and follow them via offline and online media.
Arteaga notes that the marketing pioneer John Wanamaker (1838-1922) once famously said, “Half the money I spend on advertising is wasted; the trouble is I don’t know which half”. “In the 21st Century, advanced analytics and machine learning can tell us with a high degree of accuracy the effectiveness of marketing by media and channel,” she concludes.
Americans place a value of more than $1,400 per year on the array of free online services, digital content, and mobile apps that are currently funded by advertising, according to a new survey conducted by the Digital Advertising Alliance (DAA).
Respondents said those ad-supported content and services were worth $1,404 annually, an increase of $206.64 – or 17% – over the $1,197 that respondents assigned in value to such services in a similar survey in 2016.
“With tens of millions of Americans struggling to make ends meet, ad-supported digital content and services save families significant money by reducing the cost for access to vital information, tools, and content, so it is imperative we continue our work of protecting the advertising model that helps fund those services,” said Lou Mastria, executive director of DAA. “Paying an additional $1,400 per year for access to popular websites, services, and apps is not a viable option for most Americans. The DAA will continue to provide convenient and effective tools for choice around the types of advertising consumers want to receive.”
Ad-supported digital content and services save families significant money by reducing the cost for access to vital information, tools, and content.
Among the survey’s other findings:
The vast majority (85%) say they would reduce their online and mobile activities if they had to pay hundreds of dollars a year for the content and services they currently get for free.
Four in five respondents (80%) say they would be more likely to purchase a mobile phone offering more free apps over a comparable phone with fewer free apps.
Nearly all the respondents (93%) say free Internet content such as news, weather, email, and blogs is very or somewhat important to them.
A large majority (84%) say they prefer the current ad-supported Internet where most content and services are free over a paid Internet with no advertising.
Conducted via SurveyMonkey among 1,080 US adults, the survey sought to quantify the aggregate value that Americans assign to the major types of services and content that are currently available for free because of advertising.
Respondents were asked to estimate how much people would have to pay for 19 different types of online services and content, ranging from e-mail to video, maps, sports, and weather if they were offered only on a subscription basis rather than for free with ads. The total estimated cost of those services, assigned by survey respondents, was $116.99/month or $1,403.88/year.
The survey was conducted on September 16-17, 2020. Based on a confidence interval of 95 percent, the margin of error for the survey is +/- 3 percent. The full survey results are posted on the DAA website.
Vevo, Magna and IPG recently released the study “An Anatomy of a Video Experience”. The report’s main finding is that co-viewing culturally relevant content on over-the-top (OTT) devices is key to ad receptivity. Going forward for brands, the role of Connected TV Advertising will be crucial. To gain more insights into 2021 and CTV viewing trends Portada talked to Laura Vanison, Director of Consumer & Artist Insights, at Vevo as well as with Bryon Schafer, SVP Research at Vevo.
The recently published study covers the period of September and October 2019 and highlights that all of the U.S. audiences observed (Black/African American, Asian, Hispanic/Latino and White) shared a love of co-viewing on Over-The-Top (OTT) devices compared to desktop, mobile, laptop and linear TV. The study also found that longer viewing periods result from content that people find culturally relevant, specifically sports and music. We asked Vanison and Schafer whether COVID-19 has accelerated or curbed the trends described in the report?
According to Vanison, “COVID-19 induced stay-at-home has accelerated and compounded trends that were already clearly visible in 2019. There has been a big shift towards streaming particularly in the living room. Vevo CTV viewership has increased by 40% in the US since the start of the year (Jan-Aug 2019 vs Jan- Aug 2020) as the overall broadcast and TV industries have been pivoting to streaming.”
COVID-19 and stay at home have accelerated and compounded trends that were already clearly visible in 2019. There has been a big shift towards streaming particularly in the living room.
Co-Viewing Propels Connected TV Advertising
“The already six months long Covid-19 pandemic has made a habit of the co-viewing experience. Due to COVID-19 and the growth of CTV, co-viewing has become an almost forced habit”, Vanison asserts. “It usually takes a month for a particular experience to become a habit, but it’s been longer now. This is going to change things in the long term”, Schafer adds.
Co-viewing’s definition per Nielsen refers to members of the same household watching television at the same time — but not necessarily in the same room. Linear TV has always involved co-viewing, but now with the rapid growth of CTV this is also the case for digital media. “Until recently digital media created mostly a one-on-one relationship between content and the user. But CTV has created a new multidimensional and community driven dynamic for digital media. A capacity it traditionally lacked,” Schafer asserts.
Until recently digital media created mostly a one-on-one relationship between content and the user. But CTV has created a new multidimensional and community driven dynamic for digital media. A capacity it traditionally lacked.
Connected TV Advertising: Advice for Brand Marketers
According to Vanison “The shared experience of co-viewing provides advertisers a myriad of opportunities for conversation as viewers are in the midst of engaging with each other. Co-viewing provides an increased receptivity to advertising because the moment is intended by the viewer.”
Asked about what they would recommend a brand when it comes to reachmulticultural audiencesvia video, Vanison and Schafer stress that depending on the brand’s objective recommendations will vary. However, most recommendations will be device based. For instance, co-viewing will tend to be higher on CTV than on mobile. “The way a brand marketer wants the user to connect with her/his content dictates the device he will choose for the advertising message”, Schafer notes.
Co-viewing provides an increased receptivity to advertising because the moment is intended by viewers.
An understanding by the advertiser of the different devices is crucial. For instance, mobile messaging will have a shorter length than CTV advertising. “Schafer, stresses the importance of communicating with the right message, nuance and time.
According to the Video Advertising Bureau, there are 820 million OTT devices in the United States and 30% of those devices are smartphones, followed by smart television (15%). All OTT devices are connected advertising enabled. OTT devices also include Chromecast, Roku,
Content programmers are already taking the lead adapting their programming to the new Connected TV Advertising environment. An analysis of programming reveals that major networks are shaping their programming with a substantial focus on their Video on demand subscription services. For instance, Warner Media tends to dedicate more resources to content programming for HBO MAX than to its open broadcast networks, in a similar way NBC has a major focus on Peacock and Disney on Disney Plus.
E-Sports Environments Are Increasingly Used for Music
Vanison and Schafer note that, overall, music content has been a great beneficiary of the absence of live sports as well as of the fact that the amount of new scripted originals and reality TV has substantially diminished during the current pandemic. In addition, music is a genre with broad cultural relevance.
E-sports and online video game platforms have a very strong community element and the stay at home phase of COVID-19 has increased their popularity. Musicians have been using platforms that are typically being used for e-sports to connect with fans during the pandemic: Rapper, singer and songwriterTravis Scott performed on a virtual concert in April using the video game Fortnite. The concert was broadcast on Twitch and other platforms. Epic, the developer of Fortnite, said that 12.3 million people had tuned in for the premiere. After five shows, the number reached up to 27.7 million unique viewers, with 45.8 million views, suggesting plenty of people saw multiple shows.
Ecommerce marketing automation platform Omnisend, recently published its Email & SMS Marketing Stats & Trends Report (Q2 2020) . The results of the study provide interesting insights on e-commerce consumer behavior towards email, SMS and push marketing messages during the pandemic. One insight is that consumers gravitated toward trusted channels such as email marketing when doing their online shopping.
Omnisend analyzed email send data for over 2.4 billion emails sent from the Omnisend marketing platform during Q2 2020. They also looked at more than 1.8 million SMS and push messages sent through the Omnisend platform. The data below includes sends, opens, clicks, and conversions from April 1st through June 30th for both 2019 and 2020.
Email Marketing Performance
Email Open Rates:
Email open rates increased year-over-year for both promotional campaigns and automated messages during the second quarter. Promotional campaigns (traditional scheduled messages) registered an overall open rate of 10.85%*, a 29.37% lift compared to the same period in 2019.
This increased performance is not entirely surprising. As we saw in the COVID-19 email marketing metric report, when consumers increased their online shopping they turned to trusted marketing channels like email as a source of product discovery and awareness.
When consumers increased their online shopping they turned to trusted marketing channels like email as a source of product discovery and awareness.
Online DTC brands who don’t send these types of messages because their ecommerce platform isn’t integrated with their email provider are missing a huge growth opportunity.
Type of Automation
Lift Over Campaigns
* List management, send cadence, and the use of Booster sends (remails) on a per-client basis impacts promotional campaign open rates—often resulting in lower overall numbers. For instance, it is common for remailed messages, because they specifically target non-openers, to receive roughly half of the open rate as the initial send—therefore reducing the overall open rate.
Email Click Rates:
While promotional campaigns saw a decrease in click rates, the same cannot be said for automated messages. Automated messages generated a 21.24% click rate, marking a 15.37% YoY lift over automations in 2019.
When comparing click rates in Q2 of this year, automated messages see an improvement of 49.36% over scheduled promotional campaigns, with birthday, cart abandonment, and welcome emails leading the way.
Type of Automation
Lift Over Campaigns
Email Marketing Conversion Rates:
Overall, the conversion rate for promotional email marketing campaigns was 5.37%—an 88% year-over-year lift. Maybe more promising for brands is that the conversion rate increased each month of the quarter, hinting at an increased reliance on not only ecommerce but email marketing as a primary purchase channel.
This behavior is indicative of intent-based shopping. Instead of consumers clicking on an email and casually browsing the website, emails had to ‘earn’ their clicks—but once the subscriber clicked on the email their intent to purchase was higher.
Most importantly, automated messages drove 26% of the email marketing conversions while accounting for less than 2% of the email sends. Online brands should look to automation as a major component for increasing their sales.
Type of Automation
Lift Over Campaigns
Overall Campaigns and Automation Performance:
Scheduled promotional campaigns made up 98% of the email volume sent during Q2 2020. These campaigns saw YoY increases in open and conversion rates, while click rates slightly decreased.
The worst-performing automated message, in terms of conversion rate, still saw a rate nearly double that of promotional campaigns.
The numbers don’t lie — automated lifecycle messages are powerful sales enablers for ecommerce businesses. Even though these messages accounted for less than 2% of the email marketing volume sent during Q2, they generated 26% of the conversions. In fact, the worst-performing automated message, in terms of conversion rate, still saw a rate nearly double that of promotional campaigns. Online businesses who fail to utilize automated lifecycle messages are limiting their growth potential.
For more insights including Transactional Performance, SMS and Push Message performance as well as E-commerce takeaways, please click here.
Impremedia, the leading Hispanic news and information company, launches Solo Dinero, the only digital publication on personal finance in Spanish, aimed at the Hispanic community living in the United States.
Our goal is to provide a straightforward approach for the Latino consumer
“Our goal is to provide a straightforward approach for the Latino consumer,” Rafael Cores, Impremedia’s VP of Content, said in a statement. “We are home to experts and specialized journalists who offer clear, actionable financial advice on managing your money through transparent reporting, reliable sources, and an accessible language. In the economic aftermath of COVID-19, this is more important than ever.”
Over the past few years, the percentage of Hispanic individuals and households using a wide array of financial services has grown faster than non-Hispanic consumers.
“Over the past few years, the percentage of Hispanic individuals and households using a wide array of financial services has grown faster than non-Hispanic consumers. Despite that fact, there’s no digital publication catering to the needs of the Latino community: Solo Dinero will fill that gap,” stated Iván Adaime, CEO of Impremedia.
Solo Dinero includes news on the current economic environment, special reports, and series on employment, savings, investments, and more from experts with a straightforward approach. These experts include editors and writers from our partner Consumer Reports, and columnists such as Carlos García, founder and CEO of the money app Finhabits, Javier Mota, founder of Autos 0-60 and the first Hispanic journalist invited to become jury of the North American Car and Truck of the Year Awards, and Marta Michelle Colón, psychologist and founder of the consulting firm BuenaGente.
“Solo Dinerojoins our vision of continuing to provide quality content targeted to the interests of different readers in a digital format,” added Adaime.
Portada: How is the new Solo Dinero site being promoted to the Hispanic audience?
Iván Adaime, CEO of Impremedia: “We are leveraging the reach of our network and social media channels.”
P: Will Solo Dinero also have a print component e.g. section in Impremedia Newspapers?
P: In what advertising categories within finance etc do you see the most growth potential?
IA: “Several of them, especially: Consumer Banking, Financial Assistance, Insurance, Personal Debt (Credit Cards, Home Financing, Personal Loans), Personal Investing, Taxes, Home utilities.”
P: Which initial advertisers does the site have?
IA: “In the top 10, you have banks, telecommunication companies, and insurance companies.”
P: What are the opportunities for branded integrations?
IA: “Those depend on the clients’ needs, but our team of Custom Solutions offers a great variety of options.”
The real estate industry is in need of continuing to foster diversity, whether it be among agents or in the clients that they are servicing. Real estate brokerage Coldwell Banker is implementing an Inclusive Ownership Program to increase representation of minority, women, LGBTQ+ and veteran entrepreneurs in the sector. To get a better undetstanding of the initiative and its diversity marketing implications, we talked to Jason Riveiro, Director, Global Development & Growth Markets at Realogy, the holding company that owns Coldwell Banker. Riveiro is a member of Portada’s Council System of Brand Marketers.
A recent study by ad agency Oberland finds 91% of Americans believe their actions and the actions of brands will lead to sustained change on the social-justice front. According to the study, 42% of Americans aged 19-26 have stopped buying a brand that has been exposed for racist behaviors. Almost one-third of those surveyed want to see brands provide employees with appropriate diversity and inclusion training. 20% want brands to commit to hiring more Black employees. Are brands not just doing the talk but also the walk? And how are their diversity initiatives reflected in their marketing strategies?
Jason Riveiro, Director, Global Development & Growth Markets at Realogy, the company that owns Coldwell Banker, tells Portada that “the real estate industry as a whole is in need of continuing to foster diversity, whether it be among agents or in the clients that they are servicing. Coldwell Banker has identified this issue and is committed to not only expand its diversity in-house, but more importantly, be a leader in servicing, mentoring, and championing diversity in the real estate industry,” Coldwell Banker has a network of over 94,000 affiliated residential and commercial real estate sales professionals in 3,000 offices across 43 countries and territories.
We are commited to be a leader in servicing, mentoring, and championing diversity in the real estate industry.
Diversity Marketing: How is Coldwell Banker Prioritizing Diversity?
Coldwell Banker’s Inclusive Ownership program is an initiative to increase representation of minority, women, LGBTQ+ and veteran entrepreneurs in the real estate industry. Each new brokerage that affiliates with Coldwell Banker will not pay the initial franchise fee and will receive financial incentives to support diverse business owners in the critical first two years of business. Benefits include up to $100,000 of funding, royalty fee rebates as well as education and mentorship. Owners will also receive membership and conference registration for an industry partner group of choice. As part of their inclusive Ownership program Coldwell Banker recently welcomed three minority owned new brokerages: Coldwell Banker Omni Group in Santa Ana, Calif., owned by Tina Marie and Rich Hernandez; Coldwell Banker Action Holdings in Grand Island, Neb., owned by Amber Schuppan; and Coldwell Banker Commercial Northland in Flagstaff, Ariz., owned by Becky McBride.
How Large are Minorities in the U.S. Realtor Base?
According to the National Association of Realtors, Hispanics/ Latinos accounted for 10 percent of REALTORS®, followed by Black/African-Americans (six percent) and Asian/Pacific Islanders (five percent). New members tended to be more diverse than experienced members. Among those who had two years of experience or less, 27 percent were minorities. Spanish is the most common second language that members were fluent in. Among all REALTORS®, 13 percent were born outside the U.S.
27 percent of realtors who have two years of experience or less are minorities.
Diversity Marketing: How is the Diversity Initiative Supported?
How does Coldwell Banker’s objective of Cultural Diversity impact Marketing? Riveiro tells Portada that his marketing approach is to get the word out to as many industry people as possible. “We’re focusing on growing awareness among industry reporters and influencers talking about the program and connecting with various organizations / associations – National Association of Real Estate Brokers (NAREB), Asian Real Estate Associate of America (AAREA), National Association of Hispanic Real Estate Professionals (NAHREP) – to spread the word. The program almost markets itself, as we’ve had hundreds of respondents interested after we first announced it though there are still steps needed to keep up the momentum.”
According to Riveiro, “an additional tactic that sets this program apart is the one-on-one guidance, mentoring and overall support that Coldwell Banker, at a national level, provides to all participants that affiliate with this program. The support starts on Day 1, and agencies benefit greatly from ongoing guidance, access to materials and an immediate network of industry professionals on a nationwide platform”
Media buyers crave for brand safety and strong consumer connections. We talked with Augusto Romano, CEO Digo Hispanic Media, about the important role trustworthy media properties play for brands who want to substantially engage consumers in a brand safe environment. “During this time filled with all sorts of pandemics: health, racial, and fake news, we are more committed than ever to provide the information our readers need, in the language they understand, and on the platforms they prefer,” Romano tells Portada.
The crucial role of professional media properties for effective consumer engagement by brands can not be overstated, much less in the era of fake news. It’s all about brand safety in advertising, particularly when it comes to Multicultural Marketing. “Being a network owned and operated by the leading media companies in the Caribbean, we understand, and do not take lightly, the importance of being transparent and trustworthy to our Latino and Hispanic readers and to our clients,” Romano asserts. Digo currently is in the midst of an initiative of advertiser outreach called Good Brands Support the Truth.
“At Digo, we’ve been loud and clear of our unique value proposition and have always offered brands and advertisers an environment free of fake news. Digo’s network is formed by the top Latam Publishers who are the first point of reference for Hispanics in the U.S. “We offer brands the opportunity to reach and connect, in brand safe, culturally relevant & premium content sites, with a highly engaged and true premium Spanish dominant & bi-cultural U.S. Hispanic Audience.”
Brand Safety: Media Sites Offer Higher Quality Engagement
Social Media has always been a platform in which users dive in to seek content relevant to them, but mostly related to what friends and family are doing and posting. Romano argues that “yes, users come across content from media and advertising from brands, but social media is an ecosystem that has so much going on that the engagement and awareness generated may not be classified or considered as high or the same quality as if a user is going directly / organically to a media or brand site. ” As an example Romano notes that “if we compare time spent of a user that was browsing in social media and came across a news article in his or her feed vs the time spent of a user that came directly to the site to seek information we’ve seen how the average session of a direct or organic user is significantly higher than of a user that came from social media; 2 or even 3 times higher.’
The average session of a direct or organic user is 2 or even 3 times higher than of a user that came from social media.
Romano claims that Digo’s brand safe premium quality inventory has been successful with brands and media agencies. “Some agencies and brands understand the value of our audience and our inventory and whitelist our network within their DSP’s. A good example of this is Group M’s new Multicultural Marketplace.”
Content Needs of Audiences during Covid
Content needs and usage by audiences of Digo’s brand safe digital media properties has substantially increased over the last few months. According to Romano, “when you compare the time spent of our audience in Covid related content we’ve seen a 48% increase in time spent on page. We saw a significant spike of +200% increase in unique traffic in Covid related content during April vs. the previous month. As you may recall in mid-March the topic was a known issue, but there was still some skepticism and some unfamiliarity with the subject. As time went by, the traffic was still significant and engaging with the content but the amount of users was not as high as when the pandemic had started in our markets. As a matter of fact a new spike of traffic has surged now in July due to the same spike of cases.”
A new spike of traffic has surged now in July due to the same spike of cases.
We are very excited to announce Portada Live on October 14. At this exclusive virtual event, Brand Decision Makers will share knowledge about Digital Transformation and Purpose Driven Marketing, the two most salient topics in the current marketing environment challenged by COVID-19 and civil unrest about racism.
Through a combination of exclusive bespoke workshops, pre-scheduled 1:1 meetings, and collaborative knowledge-sharing sessions, Portada Live will provide the brand marketing community and Portada media and marketing service vendor partners the ideal platform to gain exclusive insights and develop new business in these challenging times.
We will be using an interactive and fun virtual platform which will maximize knowledge-sharing and networking. Stay tuned for directions from the Portada Team in the coming weeks.
Brand Decision Maker Driven Content
Brand marketers from corporations including: Cox Communications, Lyft, Nestle, K-12 , Wells Fargo and many more will discuss the below topics:
Collaborative Knowledge-Sharing Session: How Covid-19 is Accelerating Digital Transformation: A cross-industry perspective Brand decision makers from the beauty, real estate, online education, CPG and QSR industries will provide actionable insights about their digital transformation and readiness, including e-commerce marketing and the use of marketing technologies, in these unprecedented times.
Research Spotlight: Consumer Behavior Trends for 2021
Brand Marketer Challenge: Purpose Driven Marketing in the Age of a Pandemic, Recession and Racial and + Social Injustice With the widespread outrage about racial inequality in the U.S. and worldwide, consumers are voting with their wallets about brands’ response to racism. A brands’ alignment with its core values and purpose should be the foundation of consumer support, even more so in a time where many Americans face traumatic financial decisions purchasing products (e.g. cereals or rent payment). Does a more progressive stance antagonize conservative stakeholders? How does this ultimately impact sales?Additional topics to be announced.
Opportunities for Marketing Service Suppliers
For information about thought-leadership speaking integrations and 1:1 meeting packages with major brand decision makers at Portada Live on October 14, please contact Sales Director David Karp.
Podcast advertising is one of the few media categories that are growing at a high rate, even in the midst of the Covid-19 pandemic. CNN Audio, the exclusive producer of audio content and podcasts for CNN Worldwide, ,is expanding CNN en Español’s podcast portfolio with the launch of “El Chapo: Two Faces of a Capo”. Narrated by journalist and CNN en Español anchor Fernando del Rincón, the six-episode podcast series follows the trial of Joaquin Guzman Loera, publicly known by his drug cartel alias “El Chapo,” and his reputation as a ruthless drug trafficker.
“El Chapo: Two Faces of a Capo” was released during the week of the first anniversary of El Chapo’s sentence (July 17, 2019), highlights new evidence and dramatic testimony through secretly recorded audio conversations, as well as through text messages and letters, that allowed the jury and the public to get an inside view of how El Chapo managed the inner workings of the Sinaloa Cartel. Audiences learn about the shocking details that came to light during his New York trial, his violent and unscrupulous methods, as well as other sides that, until now, have remained hidden. All episodes are now available to listen at http://www.cnn.com/elchapo, across mobile devices via CNN’s apps for iOS and Android, and on all major podcast platforms, including Apple Podcasts, Spotify, Stitcher, TuneIn, iHeart and Pocketcasts.
Regarding advertising monetization of the El Chapo podcast, sources at CNN tell Portada that they are “seeing healthy interest from our advertising partners across the WarnerMedia portfolio of podcasts. The podcast is supported by CNN Audio and WarnerMedia’s network of advertising partners.”
The podcast is supported by CNN Audio and WarnerMedia’s network of advertising partners.
They add that the they El Chapo podcast is among the “the top 10 of LatAm podcasts and has millions of downloads on a daily basis.” More podcasts series are in the offing, according to the source, as “several unnanounced projects are currently in development.”
Production: Storytelling Relying on the Presenter’s Voice
CNN anchor Fernando del Rincon, photo, tells Portada that it was an “exciting challenge to adapt the El Chapo story to a podcast.” Regarding the differences between audio production and television production he notes that they are quite different from each other, especially when it comes to storytelling: “Storytelling in a podcast relies heavily on your voice, and the content and tone depend so much on how you narrate the story. It’s all about engaging listeners to draw them in. The original El Chapo documentary was produced for TV where there is visual support, so adapting the content into a podcast was not an easy task since it’s a complicated story to tell. But the end result that we produced is amazing.”
Storytelling in a podcast relies heavily on your voice, and the content and tone depend so much on how you narrate the story.
Global Media platform Teads recently launched an online content series centered around the many ways online creativity in the ad industry is evolving and has been accelerated by COVID-19. Portada interviewed Jonathan Lewis, Global Head of Studio at Teads, to learn about the latest innovations in digital transformation and its implications for cross-divisional team work (e.g. creative and media) and organizational processes.
Lewis, Global Head of Studio, Teads, is an expert who has been tasked with pressure-testing legacy creative processes and accelerate digital transformation within advertising. He notes that Latin America is the best playground for early adoption of initiatives including cross divisional team work and content testing. He claims that “there is without question a greater appetite for innovation and to a degree risk in Latin America.”
Digital Transformation and Cross Division Collaboration
Asked where he sees digital transformation within advertising going in regards to cross-division collaboration in the creative process, Lewis notes that “you certainly hear more about the convergence of creative and media teams, both within client and agency shops and In the main I think this is driven by client needs. At Teads our teams work collaboratively across the spectrum of the platform and the approach we have promoted with regard to our relationships with clients during the creative process is a reflection of this. For the last 2 years we have worked a cross-division, collaborative initiative that combines client stakeholders, their creative and media agencies with our own creative Studio, data and media insights teams to deliver a specific campaign orchestration together in one (now remote) session. This working session, called L’Atelier is a powerful validation of the value of cross division learning and understanding. This has been especially so during the current pandemic, where Covid-19 has acted as a reset button in the lives of many and faced, as we are, with an unfamiliar world our habits and needs and desires at any given moment are pretty fluid. So, the cross-collaboration across media, insights and creative functions is essential to ensuring we deliver sensitive creative experiences and give people what they need during this time. Ensuring tonality is on point and cut through to such collaborative approaches can achieve, learning and understanding from each division.”
Faced with an unfamiliar world our habits and needs and desires at any given moment are pretty fluid.
Appropriate Tonality: The Examples of KFC and LVMH
Lewis also stresses the need for the use of appropriate tonality in these challenging times. Digital Transformation also means establishing processes and cross-divisional teams for efficient tonality feedback loops. “Simply put, when we talk of tonality we are referring to what you say, how you say, when and where you say it (the context in which the ad appears is also an important consideration with regard to appropriate tonality) and maybe whether you should be saying it at all. Things can quickly become ‘tone deaf’ to the environment in which we find ourselves. In early stages of lockdown that would include content that had people celebrating, partying, holidaying or simply referring to things that we couldn’t do any longer.” As examples Lewis cites KFC were unfortunately caught here with the outdoor campaign promoting (finger licking) good chicken. Appropriate tonality would include messages that are showing support and action to help in the crises. A good example here would be LVMH who very quickly pivoted to produce hand sanitizer. “Of course there is a thin line between genuine help and being perceived as trying to capitalize on a bad situation. So, referring back to the first question, the close collaboration across teams provides a more stable and reliable way to test the temperature, assess tone and adjust in a smart and agile way.”
The close collaboration across teams provides a more stable and reliable way to test the temperature, assess tone and adjust in a smart and agile way.
Digital Transformation: Best-In-Class Content Testing…
There are a number of ways a brand can test their content, Lewis argues. “One lifted from the world of TV, of which they should be familiar, is content pre-testing. Assuming your TVC will play out in the same way on a digital device is not advisable. So being able to pre-test that content for a mobile platform and using real time emotional tracking (via a panel and accessing the users web camera) to gage, frame by frame, how users, exposed to such a creative are reacting on an emotional level, is an excellent barometer for understanding how it is likely to perform. At what point during the creative are users happy? When are they surprised? When are they disgusted and how can we use that data to inform how we deliver this TVC as a digital piece fit for mobile.
Lewis also advocates for a ‘tonality pre- test: “During COVID via a survey to 300 respondents we are measuring aided brand awareness, reaction to creative (relevance, sensitivity to context) and impact on perception of the brand, ” he notes.
We are also advocating a ‘tonality pre- test during COVID via a survey to 300 respondents where we are measuring aided brand awareness.
Digital Transformation: Evidence based Approach Feeds Back into the Creative Process
Evidence generated from pre-test emotional studies can be a key driver for refashioning digital creatives by using the positive peaks in emotion to accentuate the creative, Alternatively an evidence based creative process in order to drive actions could involve the use of campaign performance data, live in near-real-time, to identify what’s working, to design tests (AB), to validate a hypothesis and to iterate. Lewis asserts that “for this, you need something akin to a remote war room with your clients to initiate a more or less constant feedback loop. This of course can be a lot of work and time consuming, you will need agile and fast working teams with the ability to understand and redesign creative output, but the payoff is that it could provide the key to a deeper understanding of what resonates with people exposed to your creative on a mobile device.
You need something akin to a remote war room with your clients to initiate a more or less constant feedback loop.
What: Who are brands turning to in order to engage today’s evolving Hispanic Marketing audiences? Are Univision and Telemundo still the go-to networks? How are budget allocations shifting as new platforms and media emerge? We talk to industry insiders to find out. Why It Matters: While digital platforms allow for more effective targeting and messaging, Univision and Telemundo remain referential to Hispanic marketers. Their market share and consumer demographics resources make them pillars of Hispanic communication.
Evolving demographics and new digital platforms and formats are keeping marketers on their toes. But while online video and social media are extremely popular, some things don’t change. Networks Univision and Telemundo continue to wield considerable power in connecting brands with Hispanic audiences.
Telemundo, Univision: a source of knowledge about consumer demographics in Hispanic Marketing
Multicultural marketers watch Univision and Telemundo closely. The industry leaders are an example on how to keep up with the increasingly complex Hispanic demographic. In many ways, marketers are comfortable turning to them as safe bets for reaching and truly engaging Hispanic audiences. Chris Ota, Marketing Manager, Confections & Global Foods at Nestlé USA said that their Multicultural COE, led by Margie Bravo, “works very closely with Univision and Telemundo as they bring great resources and knowledge about with consumers demographics.”
MargieBravo, Multicultural Marketing Manager at Nestlé USA explains how the two powerhouse networks have seen the shifting Hispanic Marketing landscape evolve. “They are adapting the offering for the future as they more than anyone has seen their audience evolve as well.”
Larissa Acosta, Segments Integrated Marketing Lead at Wells Fargo, agrees.“Latinos are an important consumer segment for Wells Fargo, which is why Univision and Telemundo are key partners in our marketing mix. They both target the same audiences with similar programming. We don’t see one network as more effective than the other.”
Too few marketers cater to Spanish-Speaking Hispanics
Lucia Ballas–Traynor, Executive Vice President, Client Partnerships at Hemisphere Group, supports both Ota and Acosta’s arguments in favor of Univision and Telemundo’s effectiveness. “Tell me what general market network can claim the type of share that Telemundo and Univision have. That’s what marketers and buyers should focus on,” she says.
Tell me what general market network can claim the type of share that Telemundo and Univision have? That’s what marketers and buyers should focus on.
She also explains what it means that Univision and Telemundo still hold such a high share of Hispanic audiences. “It means that regardless of acculturation level or language proficiency, Hispanics are still largely underserved by general market choices.”
English or Spanish. What difference does it make?
Regardless of which language Hispanics speak primarily, Spanish plays a key role in their identity. For this reason, “reaching ‘Spanish-language Hispanics’ is still a priority for a select group of marketers, but should be part of every marketer’s strategy,” adds Traynor.
Nonetheless, Morgan admitted that Univision and Telemundo are far more targeted to the bilingual or Spanish-dominant Latino. They “still don’t address the English dominant ones, as the majority of their programming (95%+) is Spanish-language.” As the Hispanic becomes more acculturated and bilingual, Morgan, at least, does not see them switching to English: “Their core business is Spanish-language television, so the story they tell in the marketplace speaks to that.”
New digital platforms have allowed our marketing messages to be more targeted, measurable and culturally relevant. We have opportunities to experiment with new creative and content formats and test our way into optimized creative that drives business results.
Acosta of Wells Fargo seconds that sentiment, and adds: “Spanish language television has been delivering big ratings for a while now, so we are not surprised that the trend continues.” She also notes that much of the viewing for these networks is live, as streaming and time-delayed viewing become more common programming formats.
It’s complicated to address the Hispanic audience at the right level of inclusion. Marketers must understand that the Hispanic American today is complex. Bravo of Nestlé says that when Telemundo and Univisión started “[they] had a foreign-born population that didn’t speak English, but today the highest growth is coming from the second-generation of US-born Hispanics who are very proud of where they came from but want to also honor their American heritage.” For this reason, instead of focusing solely on Multicultural or Hispanics, many brands are opting for a Total Market approach.
More Brands Adopting ‘Total Market’ Approach
Nestlé is one of them. Their coffee Latino-oriented brands like La Lechera,Nescafé Clásico, and Coffee-mate communicate through both English and Spanish advertising. Bravo adds that “The Spanish creative may be slightly different to acknowledge the nuances of how the brand is viewed or used amongst Latinos.” However, a Total Market approach seems to facilitate more flexibility.
Bravo also mentions that Nestlé has introduced “exotic flavors inspired by Hispanic tastes across several categories,” like confections, frozen snacks, and beverages. For example, take the Nerds candy ¡Lucha Grande! campaign. “For Hispanics some of these flavors may be nostalgic. But for Non-Hispanic Millennials, these flavors may add a cool twist to their favorite Nerds candy,” says Bravo. And the industry recognized this effort, awarding it the National Confectioner Association’s (NCA) “Most Innovative 2017 New Product” award.
Are Facebook and Google alternatives to Univision and Telemundo?
So what about the alternatives to Univision and Telemundo? Asten Morgan, Executive Director of Integrated Media at Latina Media Ventures, said: “Univision and Telemundo are Spanish-language television networks,” says Asten Morgan, Executive Director of Integrated Media at Latina Media Ventures. “Facebook, Google and now possibly Snap have more influence specific to Latinos, [but] those networks have small digital footprints.”
On the other hand, Acosta noted that new digital platforms do offer opportunities that television does not. “New digital platforms have allowed our marketing messages to be more targeted, measurable and culturally relevant…We have opportunities to experiment with new creative and content formats and test our way into optimized creative that drives business results.”
Acosta adds: “Both networks have recognized that media consumption is changing. They’ve set very interesting strategies in play to evolve with the times.” By acquiring properties like Fusion, The Onion, and The Root, Univision’s strategy seems to target not just Hispanic, but Millennial audiences. Telemundo, on the other hand, promotes within NBC’s properties. “They are both important partners, and are among many other Hispanic targeted vehicles that are part of our media mix,” Acosta said.
Multicultural and Hispanic Marketing: different but the same?
While some people use the words “Multicultural” and “Hispanic” interchangeably, they most certainly do not mean the same thing. Still, many brand marketers do not have budgets for both types of targeting. Are media buyers and brand marketers starting to shift budgets away from Hispanic into broader Multicultural targeting?
Morgan of Latina Media Ventures asserts that he does see them as competing for budgets. “It’s about trying to tap into two buckets of money. Some brands just have one or the other, but it’s smart on their part if they can pull it off, as Multicultural blurs the color or ethnicity line.”
But Morgan does not believe that budgets will shift away from Hispanic to Multicultural. Hispanic “can be as specific as Spanish-language only. This means the exclusion of the fastest growing Hispanic segment, the acculturated Latino.” In his experience, “there are specific Hispanic initiatives and then there are Multicultural ones.”
Will both fuse? Will marketers have to choose?
Acosta of Wells Fargo agrees that both Multicultural and Hispanic marketing are evolving. This progress is thanks to demographic changes “combined with the growing influence of diverse cultures on the mainstream, particularly with younger, digital native generations.” She adds that they work closely with Association of National Advertisers, the Alliance for Inclusive & Multicultural Marketing, and other industry organizations “so that the work is reflective of the growing influence and acceptance of diverse insights in business planning.”
Acosta asserts that, at Wells Fargo, they do not see any demographics or audiences as competing for budget. Instead, they let “the business opportunity determine our segment strategies and budget allocations.” This means the company allocates budgets in segments that are driving business through studying campaign data and measuring performance. So, in the end, it always boils down to having the right data. It’s important to know your target in order to choose the right approach.
Because of how wildly consumers’ worlds have changed in the last four months (COVID-19 and Black Lives Matter), this means they can engage with brands in endless ways and under their own terms. For marketers, this means coming up with effective strategies that address personalization at scale, new technologies, and omnichannel experience, among others. Learn how Portada Council System‘s leading brand marketers are leveraging opportunities and facing challenges around consumer engagement.
More than half (54%) of customers think companies need to fundamentally transform how they engage. (Salesforce)
Companies with initiatives to improve their customer experience see employee engagement increase by 20% on average. (McKinsey)
61% of people expect brands to tailor experiences based on their preferences. (Think With Google)
Three Consumer Engagement Challenges According to Portada Council System Members
1. Problems of Definition: When Does it Really Count as Consumer Engagement?
Related comment: “What is consumer engagement? How is it defined? What does a consumer need to do for that to be considered engagement?”
Depending on the channel, sometimes it’s defined more easily, but it isn’t always easy to measure. It used to be just about exposure, but now the consumer has the power to build a relationship with your brand.
2. Trust Goes Both Ways, Can Brands Trust Consumers?
Related comment: “Reviews and comments aren’t accurate anymore because companies pay for reviews, it’s the same trend as fake news.”
People say one thing and then do another. Marketers know that when you do consumer research, respondents say whatever they need to make you happy, to impress others, to go with the flow…
3. It’s Impossible to Fully Measure Engagement
Related comment: “How do you tie engagement to other metrics down the consumption funnel? We don’t always know if we’re really changing someone’s behavior when they watch or share. Are they more connected than before?”
Engagement is just part of what we do, but ultimately what we want is people coming to our business. The lack of uniformity of the data we receive is a challenge for personalization.
Portada Council System Members Also Identified Three Consumer Engagement Opportunities
1. Technology Can Help Consumers Relate With Brands
Related comment: “When new formats like live video come out, we tend to wonder if we are ready or how to be. Things like Facebook Live have helped people engage more and more with us, and when people engage, we can retarget. Technology allows you to measure and retarget consumers, as well as track when they make a purchase.”
Some marketers feel like they have to encompass every single touchpoint. Rather, you need to identify the right points for your audience and address those. It comes to affinity and targeting the right media.
2. It’s not All About Sales
Related comment: “Engagement translates into investment, not only economical (which is what we all strive for), but also emotional. Nowadays there isn’t time for anything, people invest time on your brand, which translates into loyalty. Brands today all have the same virtual space; as long as your consumers are engaged, you’re winning.”
Interactions between consumers are almost as valuable as interactions with the brand
3. Perhaps You Should Try Influencer Marketing
Related comment: “Influencers can be a positive strategy, but a lot of brands are not selective enough with influencers. Influencers should align with the brand and have credibility. Consumers are smarter than we think they are, they see right through it. When you have a true ambassador, they’re worth it.”
Influencer marketing is great at a local level because you can target your audience according to specific areas where your product is popular. That’s where you have local influencers that you can maximize by investing in trust rather than in reach.
Despite rumors to the contrary, marketers, and agencies want and need a connected digital advertising ecosystem. To get there, savvy, growth-oriented publishers and media companies would be wise to embrace first, second, and third-party data.
First-Party Data Is Superman But Even Superman Needs Help Once in a While
No one denies the power of first-party data. It has incredible value to publishers and marketers, and for good reason. First-party data was freely given by consumers to the sites and apps they love. I read a regional newspaper regularly and I happily log into my subscription every day. I want them to know who I am and serve me more of the content I’m interested in. First-party data is fantastic.
Like Superman, first-party data has its kryptonite and its scale. Marketers need scale to optimize their ad spend — and their media team’s resources in buying high-quality inventory. In a connected ecosystem, what provides scale for marketers is the ability to add third-party audiences.
You’ve seen the click-bait headlines that “Third-Party Data Is Dead.” It couldn’t be further from the truth for marketers and agencies who rely on these quality data sources to reach more relevant audiences everywhere they are. eMarketer projects digital ad spending in LATAM to continue its growth in 2020, as more consumers turn to digital due to the pandemic. As digital becomes the “channel of choice” for advertisers, they will need more signals, connections, and data points to understand the changing customer’s habits, interests, and behaviors. They’ll need third-party data to fill in those gaps.
Third-party data is the connective tissue everyone needs
Third-party data is the connective tissue everyone needs. If my newspaper wants to enrich its valuable first-party data, it can with third-party attributes and behaviors. Not only would that property learn more about its customers but with the right tools, they’d be able to package and pass those attributes and behaviors to the marketers that want to buy them. Go ahead and land that CPG or Auto brand with your data-driven audiences. Publisher grows revenue by maximizing inventory. The marketer connects with new audiences. Consumers discover products or services they didn’t know they needed.
Not all third-party data is sourced or aggregated equally, however. What I’ve described above is an ideal scenario in which the quality of the data provider has been vetted and verified. It’s not fantasy though. These data enrichment use cases are happening right now, around the world. Reputable third-party data providers like Experian and MasterCard, for example, are transparent about provenance, collection, accuracy, and usage. Which is why marketers and agencies can’t get enough of third-party data to learn more about their customers and create addressable audiences that actually work.
There will always be bad actors, and third-party data is not exempt. But to dismiss the power of third-party data as a whole to marketers and publishers is not only nearsighted, it’s downright blind. And now more than ever, it’s painfully obvious that relying on first-party data alone is not enough for marketers — by the way, it never was enough.
Browsers Are Crashing the Party
Browsers have overstepped and broken customer relationships with cookie blocking. They are effectively crashing a party they weren’t invited to and trying to take over the music and block the door.
Consider that worldwide, Safari and Firefox account for approximately 22% of the market share. Thanks to cookie blocking, marketers cannot reach those customers and prospects. Those touchpoints are gone. Further, publishers are losing out on monetization opportunities. Does that seem fair? Marketers and publishers were not part of the conversation about their ecosystem, about their economy, about the free Internet that they support. Safari and Firefox made these decisions to serve their own needs and to disconnect marketers from consumers, although I’m sure they’d be loathe to admit it. At least Google puts on a public face that the industry will be part of a solution, although the jury is out on how much weight or voice they’ll have.
Is it the responsibility of Safari, Firefox, and Chrome to persist in consumer privacy choices? Or rather, is it the right thing for publishers and media companies to protect their users and honor their choices? I suppose you could argue both sides sufficiently, but I believe doing the right thing by consumers is giving them the choice and tools to interact with trusted brands on their own terms.
Consumers win on privacy, right? Remember who pays for the vast majority of free content online. Marketers. If publishers can’t monetize their content and marketers can’t reach their customers, you can expect some of your favorite niche sites and apps to close up shop. You can also look forward to more irrelevant ads as marketers try their best to reach the right audiences but hit and miss more often.
Growing your business and helping your marketing partners succeed requires finding your consumers across many platforms and channels, understanding more about them, and engaging them in smart, respectful dialogue.
Don’t forget, third-party cookies and third-party data are not the same. What cookie blocking accomplishes is making it more challenging for marketers and publishers to connect data in web environments. Isolating your first-party data and refusing to collaborate is a dangerous way forward. As I’ve said previously, “Growing your business and helping your marketing partners succeed requires finding your consumers across many platforms and channels, understanding more about them, and engaging them in smart, respectful dialogue.” In other words, what will lift all boats is a connected ecosystem in which everyone can operate under the same guidelines and rules and identify consumers with translatable IDs while persisting privacy preferences.
Connectedness Is Human Nature
Connections couldn’t be more important at this point in history. We’re all experiencing a world in which our connections, near and far, are keeping us healthy, sane, and fulfilled as best as possible during the pandemic.
I see the light and it’s not at the end of the tunnel. I see a very near future where marketers, agencies, publishers, and media companies will find new ways to connect with each other, see more about their customers, and have the tools to strengthen those relationships and grow their businesses.
Find new customers, increase customer engagement, and grow revenue with first-, second-, and third-party data.
“Disconnect” as an operating system is canceled. Let’s embrace the joy of connecting in meaningful and relevant ways. Call me optimistic but there’s so much that both sides of the table are missing right now, and Lotame is just the innovator to solve it.
Find new customers, increase customer engagement, and grow revenue with first-, second-, and third-party data. Learn how Lotame Panorama can help you in today’s cookie-challenged web.