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, 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 in a Brand Safe Environment
Content needs and usage by audiences of Digo 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.
JOIN US AT PORTADA LIVE, OCT. 14, 2020 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 A diverse group of brand decision makers will provide actionable insights about their digital transformation and readiness 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 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.
To find out about Portada’s new virtual networking solutions at PortadaLive 2020 involving a myriad of brand decision makers , please contact Sales Director David Karp at David@portada-online.com.
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.
While civil unrest has hit many U.S. cities, brands response to racism has often been unmindful. “Brands have nothing real to say about racism’ is the headline of a recent Atlantic Monthly article. Is Corporate America ready to provide messaging that resonates with the consumer? How should brands respond to racism? 7 things to know.
1. Brands Response to Racism that has Resonated with the Consumer: Nike and Ben & Jerry
Nike was among the first brands to pivot its messaging. On May 29, Nike posted a text video in black and white, tracked to somber piano music, on its social-media accounts. “For once, don’t do it,” the 60 second video solicits, invoking the brand’s famous “Just do it” slogan. Later in the video, the command gets only slightly more specific: “Don’t pretend there’s not a problem in America.” Eventually, the “problem” is named as racism.
Ice cream and frozen yogurt company Ben & Jerry issued a corporate statement on its website and on Twitter that’s been widely shared and praised on social media. It begins by saying, “The murder of George Floyd was the result of inhumane police brutality that is perpetuated by a culture of white supremacy.” The statement includes a four-point action plan for eliminating white supremacy in the U.S. and is accompanied by graphics that read, “We must dismantle white supremacy. Silence is NOT an option.” Over the last 10 days hundreds of companies, sports teams, and celebrities followed suit with posts of their own, many of them nearly identical in their vague phrasing and awkward execution. The social media noise and general lack of real commitment made by marketers, prompted Jeffrey Dunn, CEO of Bolthouse Farms, a vertically integrated farm company specializing in refrigerated beverages, to write the following in a LinkedIn post: “At Bolthouse Farms, we stand in solidarity with the black community and others who have faced social & racial injustice. To honor this, Bolthouse will be going dark on our social media channels this week to allow more room for thoughtful discussions to occur without the noise and distraction from less important topics. We hope these conversations can help us come together as a community to find long-term solutions for positive change in this country.”
Bolthouse will be going dark on our social media channels this week to allow more room for thoughtful discussions to occur without the noise and distraction from less important topics.
2. Are Companies “Opening their Purses” like Social Media Users Demand?
Social media users are saying “open your purse” to brands and celebrities posting messaging against racism in support of #BlackLivesMatter to demand action, not just words. An example of a company seemingly talking the talk but not walking the walk is L’Oréal Paris who spoke out publicly last Monday in support of the Black Lives Matter movement and received much criticism in the comments of its social post after model Munroe Bergdorf posted about the brand on her Instagram, saying it had dropped her from a 2017 campaign for “speaking out against racism and white supremacy.”
3. Yes, Some Are: P&G, Beauty Brands…
Procter & Gamble announced a new US $5 million contribution to the P&G “Take On Race” fund that will go to support organizations like the NAACP Legal Defense and Education Fund, the YWCA Stand Against Racism and the United Negro College Fund. In addition, over 60 beauty brands have pledged financial support for organizations including Black Lives Matter, the Minnesota Freedom Fund and the NAACP, according to a growing checklist of brands being compiled by industry watchdog account Estée Laundry. Unilever established a a $100,000 investment fund that will be provided to five activists working toward social change, and many of its brands including Axe, Tazo, Suave, Seventh Generation, Degree and Vaseline have pledged more than $1 million to organizations fighting for racial equality. Luxury makeup brand Glossier and YouTube both pledged $1 million each to related causes.
4. Brands Response to Racism: Donations are Not Enough; This is a Systemic Crisis
Let’s not forget that corporate donations can be more of a symptom of corporate racial injustice than a remedy. There are huge structural issues here. Black and brown Americans are extremely underrepresented in Corporate America; definitely in marketing departments. As Portada has written before, Multicultural and Hispanic Centers of Excellence that don’t have decision making power over budgets, are more of a lip service than a real commitment by corporations to market to the growing multicultural demographic. While thought leaders often claim that corporate diversity drives business benefits, Corporate America has not adjusted; black professionals today hold just 3.2% of executive and senior manager positions and less than 1% of Fortune 500 CEO spots, according to a report from the Center for Talent Innovation called “Being Black in Corporate America.”
Multicultural Centers of Excellence that don’t have decision making power over budgets are more of a lip service than a real commitment by corporations to market to the growing multicultural demographic.
5. Consumers will Vote with Their Wallets …
Consumers can play a crucial role in forcing corporations to really commit to diversity and racial justice. Consumers should increasingly reward companies who really commit to diversity and racial justice by buying their products and services. Shoppers, particularly white middle and upper class consumers, needs to go beyond price and quality purchase considerations and support a diverse and racially free society.
Shoppers, particularly white middle and upper class consumers, needs to go beyond price and quality purchase considerations and support a diverse and racially free society.
Millennials are already giving cause related factors a lot of weight when making purchasing decisions. Lewis Williams, EVP and Chief Creative Officer at Burrell Communications told Adweek. “that younger generations are “holding brands accountable. … They’re telling brands, you have to do more, you have to change the situation.”
6. Brands Who Recognize New Consumer Power will Benefit
Brands need to incorporate diversity and racial justice to their most important company objectives in order to reflect consumer preferences (see point 6 above). This requires that company leadership and stakeholders first pause to think; L’Oreal USA did have to pause and listen from members inside and outside its organization to decide both the multi-cultural division’s and larger company’s response, Erica Culpepper, general manager of multi-cultural beauty at L’Oréal USA, told Glossy. “On Friday, we paused all content that was beauty-specific, or around product or influencers, things that might seem trivial in the larger landscape… but elevating social justice as a company is something that is new for us, but part of our longer-term strategy,” she said. Let’s hope so.
7. Brands Response to Racism: MarTech can Help to Connect with the Consumer at Scale
Appropiately leveraged marketing technologies can help brands get closer to consumers in this time of unrest. “Time, Context, and Location are key to a successful marketing campaign. Given the global pandemic, and the current state of the country, every state and city is experiencing different things at different times. It is critical to talk to each audience differently,” says Oz Etzioni, CEO, of Clinch, an AI powered omnichannel personalization technology platform. According to Etzioni, “Personalization is now an essential. Customers increasingly expect ads to be personalized. Not in a creepy way, but in a way that fits with the way they see the world right now. Brands win audiences by creating connections based on empathy and relevance.” According to Etzioni, “70% of companies that use advanced personalization have already earned 200% ROI or more from it.”
The U.S. government has given tax payers until July 15 to file and pay 2019 income taxes. Major Tax Marketing efforts therefore have been extended for 90 days. We asked John Sandoval, Senior Brand and Latino Marketing Manager at TurboTax owner Intuit, (and a Portada Council System member) about how he has adapted TurboTax marketing to the new social distancing environment.
Sandoval tells Portada that TurboTax’s biggest priority is maintaining taxpayers informed on how the current landscape can impact their filing situation. “Government economic incentives like the recently passed stimulus also has had an impact on millions of Americans, who may not have all the information available to fully understand how they could benefit or what it means to them.”
TurboTax was recently featured inGoogle-Youtube ads leaderboard as one of the 12 most-watched ads that encouraged consumers to stay at home. These brands adapted their message to help flatten the curve and fight the spread of COVID-19 across the U.S. The 12 ads on the platform’s list have generated more than 32 million views. The English-language ads were created by Wieden & Kennedy and media was planned and bought by both Camelot and Wieden and Kennedy.
Latest Tax-Marketing Initiative: Stay Home PSA Ads
Sandoval feels proud of this communication initiative and particularly about the fact that it was aired and communicated in Spanish supporting Turbo Tax multicultural marketinginitiatives (see ad below).
Sandoval adds that wile he has “seen some great companies run ads addressing the current situation on English-language TV, many of them have not complemented their efforts in Spanish-language TV.” “Our efforts speak to our commitment to the Latino consumer segment. In addition, we have a robust content strategy that provides in-language relevant information to all Spanish speaking customers, so they are up to date with all recent tax changes.” “Knowing that our consumers are doing so many things for the first time at home due to the current environment, we wanted to empower the community that “doing taxes” could be one of them.”
New Approach to Day-To-Day Tax Marketing
Sandoval tells Portada that his approach to day-to-day marketing has changed over the last few months. “What we have learned during the current health crisis is that consumers expect brands to tap into their humanitarian side and give back to consumers in this unprecedented time. It has been very uplifting to see companies like Zoom donating video communication services to schools so that children can continue learning; or Gap pivoting its resources so that their factories can focus on producing surgical masks as opposed to clothes; or Anheuser-Busch making hand sanitizer alongside their beer.”
What we have learned during the current health crisis is that consumers expect brands to tap into their humanitarian side.
Messaging in Times of Social Distancing…
“Our messaging has always been connected to offering the ability to file at your convenience, while leveraging the expertise of our credentialed bilingual CPA’s and Enrolled Agents to file with confidence. During social distancing, this message has become more relevant than ever before. Many consumers will have to file their own taxes this year for the first time ever, and others will still need the support and guidance of tax experts, ” Sandoval asserts.
It has been very uplifting to see companies like Zoom donating video communication services to schools; or Gap pivoting its resources so that their factories can focus on producing surgical masks as opposed to clothes; or Anheuser-Busch making hand sanitizer alongside their beer.
with Changing Patterns in Media Consumption.
“Media consumption is also shifting given the change in consumers’ daily routines, cancellation of live events, and greater need than ever before to stay connected to one another”, Sandoval claims. “At Intuit, we are constantly evaluating the different channels we use to communicate with consumers. Having real-time data allows us to be nimble and adjust our strategy and message to ensure we are being a valuable partner and a resource to all Americans, while being sensitive to the current situation we are all living. For example, with many Americans turning to linear TV news more frequently and for longer duration to stay abreast of the constant changing environment we’ve made sure our properties flex to meet our customers where they are.
With many Americans turning to linear TV news more frequently and for longer duration to stay abreast of the constant changing environment we’ve made sure our properties flex to meet our customers where they are.
E-commerce marketing – the practice of converting website traffic into sales – is simple in definition. But shoppers, digital platforms, and algorithms evolve constantly, and so must your strategy. Studies claim that 95% of purchases will be made online by 2040, and online shopping already accounts for 10% of retail sales in the U.S. alone. The numbers leave it crystal clear: brands can no longer afford to avoid the digital marketplace.
For the most part, brands are embracing the opportunity – there are 12-24 million e-commerce sites online, and according to eMarketer, e-commerce sales are expected to hit $27 trillion in 2020 (Note: COVID-19 impact on consumer behavior will substantiallz accelerate this trend). But to succeed, brands must be strategic and consistent about e-commerce marketing, and how they use the tools that the digital era affords them.
E-commerce marketing involves balance of paid, unpaid efforts
In contrast to shopping in person, e-commerce offers customers a far more personalized, convenient experience. It gives shoppers access to almost any type of product from anywhere in the world and, similarly, gives brands access to platforms with a global reach and a myriad of tools to empower their brand. A recent study found that the #1 reason people shop online is that they’re able to shop at all hours of the day.
Putting your products in front of the right audience requires a balance of marketing efforts that can generally be broken down into paid and unpaid efforts. Unpaid strategies involve drawing the right audiences to your brand “organically” through campaigns that generate audiences and sales through offering relevant, captivating content. SEO falls under the unpaid category as well, enabling better search rankings for those willing to navigate search engines’ ever-changing algorithms.
Paid media typically involves buying a space for advertising across different digital platforms. Common formats include display ads, banner ads, and sponsored ads, and they typically live on platforms like search engines (Google, Bing), social media (Twitter, YouTube, Facebook), and typical websites.
Brands must be thoughtful about how they employ a mix of paid and unpaid marketing strategies, responding to their target audiences’ online preferences and behavior.
E-commerce shoppers are global, young, and skew female
While each brand is responsible for understanding the particularities of its target audience, statistics on global e-commerce shoppers reveals a number of notable trends. E-commerce is increasingly global:cross-border e-commerce now accounts for 20% of total global e-commerce.
E-commerce is also increasingly generational: A recent study found that Millennials and Gen-Xers spend 50% more time shopping online than their older counterparts: 6 hours versus 4 hours, respectfully. And 67% of millennials and 56% of Gen-Xers prefer to shop online versus in a brick-and-mortar store. Breaking e-commerce down by gender reveals another interesting trend: Men spend 28% more than women shopping online.
Social media continues to drive effective e-commerce marketing
It’s no surprise that today’s social media platforms offer brands a myriad of ways to connect with today’s shoppers. While they can be selective about which platforms they use based on their audience and goals, those that forego a social media presence altogether are missing out. A recent study found that brands with a social media presence experience sales that are 32% higher than those that do not. This when considering the results of a study that revealed that 74% of consumes rely on their social media networks to make purchasing decisions.
Luckily, brands can turn to data to inform their decisions surrounding which platforms to invest in. For example, Shopify reported that the average order value for customers referred from Instagram is $65.00, followed by Facebook ($55), Twitter ($46), and YouTube ($38). Brands are already spending big money to promote their products on social media: eMarketer reported that Worldwide ad spending on Facebook and Instagram combined will reach nearly $95 billion annually in 2021. But other platforms are growing, too: The number of marketers sharing video content on LinkedIn is set to rise to 65% in 2021, for example.
Email marketing allows brands to be proactive in reaching audiences
While consumers actively seek compelling content from brands on social media, email marketing allows brands to initiate a kind of proactive engagement that keeps them top of mind with their audiences.
A recent study found that email marketing contributes to 20% of traffic that drives eCommerce sales, and OptinMonster reported that email marketing yields $44 for each $1 spent for a 4400% ROI.
Smart brands use a number of tactics to take full advantage of email marketing. Segmentation – diving groups of consumers into groups based on common characteristics, traits, or behaviors – is key to ensuring that the content a brand delivers its audiences is relevant. Depending on who they are and what they are looking for, consumers will seek different kinds of information and products during their buying journeys. Campaign Monitor reported that segmented campaigns to email subscribers drive a 760% increase in revenue.
Shoppers increasingly turn to mobile for online shopping
An essential element of any e-commerce marketing strategy involves recognizing the different devices that shoppers use. 85% of customers start a purchase on one device and finish it on another.
Today, a significant portion of e-commerce activity occurs on mobile devices. This is true for all stages of the journey: 93% of Millennials have compared online deals using a mobile device. Shoppers even turn to their phones while in physical stores: 65% of consumers look up price comparisons on mobile while in a physical store, and 32% of shoppers changed their minds about purchasing items after checking out product information on their mobile devices within a physical store.
They feel as comfortable making important purchases on mobile as they do on desktop devices: In fact, conversion rates from mobile apps are 3x higher than mobile websites, and 40% of all online purchases made during the holiday season are done on smartphones.
What does this mean for e-commerce marketing strategies? Most importantly, brands must design mobile-friendly websites. 73% of consumers will switch from a poorly designed mobile site to one that makes purchasing easier, and people who have a negative experience in your mobile store are 62% less likely to purchase from you in the future. Brands that want to take it a step further can engage shoppers on brand or company-specific apps. According to a study from Invesp, 53% of smartphone and tablet owners will shop on company-specific apps.
AI set to transform shopping experience
While AI is still a nascent technology, it is quickly becoming a useful tool in e-commerce marketing strategies. It is primarily useful for deriving insight from large volumes of data. This is particularly relevant for e-commerce marketers that want to find patterns in shopping behavior and form a 360-view of customers as they give us clues about their preferences through interactions and engagements with your brand.
AI is also immensely useful in delivering better customer experiences. Chatbots represent one of the most popular applications for AI today. While nothing can fully replace the human touch, shoppers are starting to recognize the value that AI-powered customer service tools offer. A recent study found that almost half of consumers are open to the idea of purchasing an item from a chatbot. 57% are interested in getting information sent to them by a bot when visiting a business’s website.
What not to do: additional fees, complicated checkouts
Shoppers go online for convenience, and if they can’t find what they want easily, or if it won’t be delivered efficiently, they are likely to abandon their journey with a brand. According to a study by Metapack found that 45% of online shoppers abandon their carts when they are unhappy with delivery options, and 69% feel the same about shipping fees.
Similarly, complicated checkout processes, websites that load slowly, and sites that aren’t optimized for mobile will leave the site without making a purchase. The consequences for this can be drastic: 73% of consumers will leave a site if it isn’t mobile friendly.
But there are ways to bring users who abandon back in. Email recovery strategies allow brands to send emails reminding users to return and complete a purchase. They are surprisingly effective, with a study claiming that almost half of recovery emails are opened, and that almost a third incentivize a sale.
Smart e-commerce marketing means automation, personalization, and convenience
Online shopping habits will continue to evolve as technology enables more and more ways to make e-commerce easier, faster, and more personalized. Smart brands can win in this space by staying attune to the devices and platforms that people are using, using technology to complement (and sometimes replace) the human touch, and building the tools to keep transactions as smooth and seamless as possible.
In an exclusive interview Cynthia Hudson, SVP and managing director of CNN en Español and Hispanic strategy at CNN, explains how COVID-19 has moved her company to build new offerings in tune with audiences new content needs as well as to optimize content delivery across different screens.
In Q1 2020 CNN en Español’s linear TV audiences have seen triple digit growth rates compared to Q3 2019. The growth has been buoyed up because last March CNN en Español was included in the basic DirecTV package, which helped boost the channel’s overall audience to 22 million households. April 2020, was CNN en Español’s third highest month on record in terms of linear TV viewership by the 25-54 year old demographic.
Hudson tells Portada that CNN en Español’s audience is growing at a very high rate, particularly in digital channels including video and podcast. April 2020 surpassed March 2020 as the biggest month on record in terms of unique visitors at https://cnnespanol.cnn.com, with 50 million unique users and 123% year on year growth, and 123 million video starts (130% year on year growth).
The high growth rate of digital audiences has enabled CNN en Español to substantially increase its programmatic advertising sales, particularly for video. “Advertising in video-programmatic has been three times higher year-to-date, compared to the same period last year,” Hudson asserts. “Our podcasts are sold out until July,” she adds. Regarding overall advertiser response in the current COVID-19 health crisis, Hudson notes that “advertisers are interested in finding ways to reach people with different messaging. They are conscientious about what the consumer really needs. Right now the consumer needs to know that he is not alone.”
Advertising in video-programmatic has been three times higher year-to-date, compared to the same period last year.
At least part of CNN en Español’s audience increase can be attributed to the high credibility of CNN en Español’s information. Hudson emphasizes that it is precisely in times of crisis that audiences crave for “real news, facts and reliable sources.”
Content: Everything Changed …
“COVID-19 changed everything. We are trying to address the new questions: News that impact your life, your future and your family,”Hudson notes. “We are finding we need to grow where the people are and are developing new ways to engage with the audience,” Hudson says. As one example she cites the podcast “COVID19 con el doctor Helmer Huerta”, which has had an audience of more than 1 million listeners. To reinforce its connection with its audience CNN en Español recently activated the “Aquí estamos Campaign.” The campaign stresses that in times of uncertainty, the facts reported by CNN provide clarity and comfort. The campaign is being promoted internally at CNN as well as through CNN en espanol’s digital and linear TV channels. A new podcast analysing Latino issues and voting trends for the 2020 November election is in the offing. Called “Voto Latino” it will be led by journalist Juan Carlos Lopez. According to Hudson the podcast will address topics such as where Latino politics is going to and what is happening with the political season. “It’s important to take into account that however we manage politics in this country, it reverberates across the world,” she notes.
COVID-19 changed everything. We are trying to address the new questions: News that impact your life, your future and your family.
…including Content Delivery
CNN en Español has been implementing a strategy of delivering content on specific topic areas over linear TV and digital vehicles (desktop, ipad, mobile phones etc.). These include anchor Xabier Serbia led programming on business/finance as well as “Vive la Salud”, a health and well-being show aired every Thursday after CNN’s global town hall. Some segments are specifically built for digital and are broadcast via the Facebook live platform.
Regarding 2021 programming, Hudson notes that the lessons learned during this process are going to continue in 2021. Hudson, who oversees all aspects of CNN’s Spanish-language media businesses, including newsgathering, and editorial content, plans a three pronged evolution of programming. First supporting the ongoing evolution of content delivery across different platforms. Second several documentaries and new series will air next year. Finally, CNN en Español is going to continue to build out content from its bureaus including its offices in Mexico and Argentina (e.g. CNN Primera Manana con Nacho Giron and all news format from CNN’s Argentina office.).
COVID-19 is already having a huge impact on marketing, advertising and media. How are advertisers reacting to COVID-19? How will different media types ad revenues be impacted by the coronavirus health crisis? Portada got insights from brand and media agencies of the Portada Council System in order to gain some clarity. The answers to 7 crucial questions.
1. How are advertisers reacting to COVID-19?
“In this period, we know that consumers focus on basic needs and expect brands to supply and deliver them reliably. Consumers don’t want brands to stop advertising, but it must not be exploitative or insensitive,” Joseph Kiwanuka, Senior Manager, Cross-Cultural Connections, at UM tells Portada. A CPG brand marketer in the Portada network says that since the start of the coronavirus crisis, “marketing practices have remained consistent, one insight consistently being practiced is empathy. Messaging reinforces reassurance and value,” he adds.
2. How are brand marketers adjusting marketing expenditures?
Some corporations are freezing or postponing their plans (e.g. Turbotax as the tax deadline has been postponed to July 15). UM’s Kiwanuka notes that, “some of our clients are being tasked with pausing media campaigns and/or turning back media dollars to their corporations to help alleviate the impact to sales. Many matters regarding media budgets are still up in the air and it is still unclear as to the direction that media budgeting for the rest of the year will go. We are taking things a day at a time.”
Many matters regarding media budgets are still up in the air and it is still unclear as to the direction that media budgeting for the rest of the year will go.
3. How are different ad-categories being impacted?
The impact on business and marketing activity will vary across industries, depending on how much demand and investment will be delayed as opposed to destroyed during this crisis. MAGNA, a centralized IPG Mediabrands resource that develops intelligence, expects the impact to be severefor the travel, restaurant, and the theatrical movie industry, significantfor retail (check out Macy’s announcement to furlough 130,000 employees), finance and automotive, moderatefor packaged food, drinks, personal care, insurance and pharma, and potentially positive for e-commerce and home entertainment. While the overall impact of the coronavirus on advertising will undoubtedly be negative (more details below), some sectors are actually starting to profit from the increased demand of families for home entertainment. “We are in a unique position during this crisis since we are the market leader in providing families online education at home. Day to day efforts include accelerating campaigns/creative to be in market sooner and even revising some original copy to align with current events,” a brand marketer in the online education sector tells Portada.
We’re in a unique position during this crisis since we’re the market leader in providing families online education at home. Day to day efforts include accelerating campaigns/creative to be in market sooner.
4. Advertiser COVID-19 Reaction
MAGNA released its revised March 2020 Ad Forecast last Friday and expects all-media full year ad sales to decrease by -2.8% this year as the spending cut from most industry verticals will be mitigated by the incremental political spend ($4.9 billion, up +26% vs 2016), and a V-shaped rebound in the second half (Magna). It remains to be seen if this forecast is realistic, as there is a significant downside risk (see question 7 below).
5. Which media types will be particularly hard hit?
Linear ad sales will suffer the most. MAGNA released its revised March 2020 Ad Forecast last Friday and it expects media suppliers’ total linear (National and Local TV, Radio, Print and OOH) ad sales to decline by -12% (-20% in the first half, -2.5% in the second half). The decline forecasted by MAGNA would be larger were it not for the political advertising revenues (2020 elections) to be obtained by linear TV, radio and print outlets later this year. Media vendors’ linear ad sales will shrink by -12% (incl. political) this year compared to approx. -4% per year in recent years. The decrease in advertising sales will reach -13% for national TV, -12% for OOH, -25% for print and -14% for radio. The outlook will be slightly more positive for broadcasters and publishers when including digital ad sales. Local TV’s non-political ad sales will also decline massively but political spending (almost US $5 billion, +26% vs 2016) will stabilize full year revenues (+1%). The sharp decline in ad dollars is not necessarily a reflection of lower linear media usage in the last few weeks. In fact, the opposite is true: for instance in the multicultural space, Spanish-language news viewing increased as much as 50 percent last week among Hispanic adults 18-34 compared to the week prior and 123 percent versus last year. Hispanics over the age of 50 are already heavy news consumers, but their viewing has increased as well (29 and 46 percent, respectively). In addition, for the week of 3/16 -3/22 linear TV usage had as much as 182 percent increase among Asian American teens, compared to the same day the prior week.
The other major loser is experiential marketing as mass gatherings are out of the picture in the next few months. One brand marketer interviewed by Portada who wanted to remain anonymous told us that “investment is mantained in all channels except experiential.”
Investment is mantained in all channels except experiential.
6. Digital Advertising: More Resilient
At this stage, the total market decline anticipated (-3% or -$6.2bn vs 2019) remains less severe than the decline experienced in 2008-2009 (-20% or -$33bn vs 2007), mostly because of the weight and resilience of digital advertising today. Magna expects digital advertising to be more resilient at +4% (-2% in the first half, +10% in the second half). Digital media ad sales will grow by +4% this year and re-accelerate to +7% next year. Search will slow down to +4.5% growth while social and digital video (including Connected TV) will continue to grow by high-single digits.
Search will slow down to +4.5% while social and digital video (including Connected TV) will continue to grow by high-single digits.
7. Is the advertising forecast realistic? “V” vs “U” shaped recovery
According to Magna, “at this stage, both the macro-economic outlook and the corresponding advertising forecast present a high degree of uncertainty and significant downside risk for 2020. The key question is how long the social distancing imposed demand shutdown will be. The U.S. economy has never been through a period like this in modern economic times. Right now, governments are substantially repressing economic demand through social distancing rules.
Right now, governments are substantially repressing economic demand through social distancing rules. The key question is how long the social distancing imposed demand shutdown will be.
While in Europe substantial efforts are being made to make sure that companies don’t go bust and employees don’t lose their jobs, that is not true for the U.S. despite the recently signed U.S. 2 trillion fiscal plan. This will become even more of an issue should the shutdown be expanded beyond April 30. Should the social shutdown be expanded to the late spring and summer, the economic and advertising recovery will be U shaped rather than V shaped. Therefore, the 2020 decline in advertising will be larger than the one in the Magna forecast.
Once the virus is under control the economy needs to be available to hit the ground running and that means that most employees need to remain employed to keep processes and know-how at their companies. Another caveat poised by analysts is about the quality of the data regarding economic activity (and advertising demand). Most economic data is based on surveys. Are consumers and businesses going to be filling out surveys in this environment? Will data be reflecting accurate information or meaningless noise?
According to Comscore, Impremedia’s digital properties, along with Univision and Telemundo, have by far the most audience among Spanish-language news publishers in the U.S. Portada talked to Iván Adaime about opportunities in Spanish’-language publishing in the U.S., programmatic ad sales, SEO, social and more.
Iván Adaime Discloses Impremedia’s Secret
“Not a single news publisher —U.S. based or foreign-based— has more digital Spanish-language audience in the country than Impremedia, Telemundo or Univision,” Iván Adaime, CEO of Impremedia, tells Portada.
Having and monetizing owned-and-operated digital properties has its advantages versus the offerings of advertising networks and other intermediaries in the ad market. According to Adaime, “a publisher like us has an audience of its own. It’s an engaged audience that we reach by creating unique content that appeals to the U.S. Hispanic population. Being a publisher also gives you the ability to create custom content for advertisers and distribute it at scale. An ad network, on the other hand, is just a collection of unconnected foreign-based websites that you can buy directly using any programmatic channel, so its unique value proposition is, unlike in the past, becoming less appealing.”
Content is the main reason behind the 50% year-over-year growth of Impremedia’s audience in the last few years. “The main reason is our content. That’s the key investment on our end. Then you would have to add a clean and fast user experience to the mix. We do not use any interstitial and intrusive ads for example. Finally, we pay close attention to data and analytics. ”
Being a publisher gives you also the ability to create custom content for advertisers and distribute it at scale.
Programmatic: the Main Source of Digital Revenues
“If you have an audience at scale and the right ad quality metrics like viewability, programmatic is great. Actually, it is our main source of digital revenues”, Iván Adaime notes. With that said, Adaime still sees an opportunity for direct sales as there are a lot of clients that still prefer to do it this way, and some advertising categories that do not transact well in programmatic.
Spanish-Language Publishing is the Largest Opportunity
Impremedia produces content in Spanish for U.S. based audiences because this is where it sees the most opportunity as it is an underserved audience. “We see a bigger opportunity with content in Spanish. We haven’t seen the model ‘English with cultural nuances’ working at scale.”
Spanish-Language SEO in the U.S.
As a publisher of Spanish-language content in the U.S, how does Impremedia navigate the SEO space? Is there less competition than for English-language keywords both in terms of SEO and SEM? According to Iván Adaime, search engine optimization is something that he pays close attention to. “There are very few US-based publishers but there’s plenty of competition coming from foreign publishers. We do not do any SEM because we do not pay for traffic. We only invest in creating quality content.”
Social: 2 Million Fans and 300,000 Newsletter Subscribers
Impremedia has close to 2 million fans on social media, who are a good source of the company’s traffic. Iván Adaime notes that Impremedia “does not pay to acquire fans, nor do we pay to promote our stories in those platforms. We only invest in creating the type of quality content that attracts our target audience. Newsletters are also a product that we pay a lot of attention to. We have over 300,000 subscribers that are actively engaged.”