In the era of technology, the winner is the one who adapts faster. Thus, clients are moving their programmatic ad buying in house, as well as looking for media services in big consultancy firms such as Accenture. This results in a need for tech knowledge in ad media agencies who are facing challenges to remain relevant. Learn how Portada Council System’s leading brand marketers and agency executives offer solutions to better adapt to an increasingly demanding technological landscape.
About 30% of marketers were unsatisfied with their agency model in 2018. (Movidiam)
Nearly 80% of the brands that are members of the U.S. Association of National Advertisers (ANA) have some form of in-house agency, almost double since 2008. (ANA)
In 2019, the purchase of creative ad agency Droga5 by Accenture meant adding a creative muscle not normally associated with giant consulting firms. Additionally, WPP announced that it would not participate in pitches audited by Accenture.
Three Tech-Knowledge Challenges According to Portada Council System Members
1. Focusing on Digital Lower-Funnel Can Hurt Traditional Brand Buiding
Related comment: “Consultancies and MarTech companies are mostly involved with lower-funnel conversion, but what happens if nothing comes in the lower funnel? Focus on digital to the exclusion of traditional media which may have a more brand building, higher-funnel role in messaging.”
This is just another fad in the industry. Media agencies have a much more unified approach to marketing and media than consultancies.
2. Finding the Right Talent Isn’t Easy
Related comment: “One way to boost talent and knowledge is by encouraging companies to move from vertical structures to demand cells (sales, marketing, supply, development, etc) so that they can evolve to multifunctional teams instead of verticalities.”
There’s too much technology, too many tools that no one knows how to handle.
3. Leadership is Too Far Above
Related comment: “Managers often give instructions from corporate without much real knowledge of the market.”
Many times, senior executives at agencies have a lot of theoretical knowledge they haven’t really put in practice.
The fate of multicultural marketing is a hot-button topic, with some saying it’s officially “dead” and others arguing that it should be more important today than ever. As minority ethnic groups shaped the evolution of the U.S. population in recent years, multicultural marketing became a hot topic in every corporate marketing department. Smart brands started to invest significant effort in strategies to reach ethnic groups with distinct cultural and ethnic behaviors and values. Best practices emerged, but marketers often stumbled and struggled to get it right.
Today there is a wide range of views on multicultural marketing among industry leaders. Here, we look at a range of perspectives on how brands can form genuine, long-lasting connections with diverse audiences.
Ethnic minorities playing an increasingly important role in U.S. demographics
Between 2000 and 2010, the U.S. Hispanic population grew by 43%, or four times the growth rate of the total population, according to the Census Bureau. And they’re not slowing down – the U.S. Hispanic population is expected to double in the next 40 years. In 2020, the country’s population of 17-years-old’s and under will come from a minority background for the first time.
In fact, diverse ethnic groups are so significant to the makeup of the U.S. population that the Census Bureau recently launched a $500 million marketing campaign in 13 different languages aimed at reaching multicultural audiences. For the first census to go digital, the U.S. government is making a massive effort to reach 99% of the population. In today’s America, that requires significant effort to reach niche ethnic audiences.
While this year’s census is sure to provide important insight on population trends, the government predicted that by 2020, U.S. Hispanics will make up 29 percent of the growth in real income and are expected to add more than $1.3 trillion in buying power. Despite all this, multicultural ad spend only makes up 5% of marketing budgets today.
America’s shifting population sparks debate over multicultural marketing
Latinx, Asian and African American populations now have a combined population of 130 million, making up almost half of the population. With the massive growth of these demographics came a shift in the marketing world. The big question was this: How do cultural differences among ethnic groups shape different lifestyles, preferences, and values? And how can marketers better target these different groups with tailored products, messaging, and campaigns?
Multicultural marketing became both a buzzword and a real concept: Entire departments and agencies dedicated to targeting diverse audiences emerged. But as ethnic minorities become the new “majority” in the United States, some have argued that the term is obsolete.
After all, if such a significant slice of the American population is multicultural, then what exactly is the general market if not a mix of diverse cultures? Some marketers have begun to argue that in a “minority-majority” country, treating different cultural groups as separate from the general market no longer made sense. Today, the fate of multicultural marketing is a hot-button topic in the industry, with some saying it’s officially “dead” and others arguing that it should be more important today than ever.
Some marketers have begun to argue that in a “minority-majority” country, treating different cultural groups as separate from the general market no longer made sense.
Minorities don’t believe they are being represented in ads
Brands’ failure to reach diverse audiences is reflected in the attitudes of minorities themselves. A recent study by Adobe found that nearly three in four whites (74 percent) believe their race/ethnicity is represented in the ads they are served, compared to 26 percent of blacks and only 10 percent of Hispanic/Latinos.
Some argue that multicultural is the new general market
Those that argue that multicultural marketing is dead focus on the fact that there are now so many ethnic minorities shaping the U.S. population that they have become the new general market. They argue that treating ethnic minorities like distinct audiences reflects an attitude that pits assimilation against multiculturalism and provokes cultural boundaries instead of inclusion.
This attitude would imply that diversity and multicultural departments, multicultural agencies, and segmentation by ethnicity are all unnecessary. At the same time, it would lead to new approaches to marketing that look at the general market with an appreciation for how cultural forces and fusions shape trends and consumer behavior. Concepts like cross-cultural and poly–cultural marketing are emerging. Some find this exciting, not discouraging.
Diversity and Inclusion important, but not the same as multicultural marketing
Given the country’s ongoing demographic evolution, backlash against multicultural marketing is surprising to some. Many veteran marketers have issued a warning to those who minimize the importance of multicultural marketing. To them, a “minority-majority” America offers smart marketers enormous opportunities for growth.
Despite the growth and purchasing power of multicultural populations, corporate America tends to look for blanket approaches to addressing diversity. There has been a recent increase in the number of “Diversity and Inclusion” programs in corporate offices. This is an important effort that is effective in creating an inclusive space for diverse voices in the workplace, but it is not the same as maintaining multicultural marketing practices.
Corporate brands need multicultural marketing departments because representing diversity in the office through “Diversity and Inclusion” programs is not the same thing as investing in strategic initiatives to better market to multicultural audiences. The former looks inward to shape corporate and workplace culture, and the latter looks outward to grow business.
U.S. Hispanic identity tied strongly to culture of origin
According to a study by Kantar Consulting, 92% of Hispanics believe that it feels natural to live in the U.S. and connect to its culture but retain the culture of their country of origin. 57% of Hispanics believe that the Spanish language is more important to them today than it was just five years ago. And 62% of younger Hispanics – the ones who feel particularly unrepresented in the market – reported becoming more interested in the Spanish language. Brands looking to connect with emotions and themes that truly connect with Hispanic audiences should look to their cultural roots for sources of inspiration.
Smart brands are turning to multicultural to reinvigorate, strengthen image
Some marketers have identified and built strategies around these opportunities. Large brands across the country are betting big on multicultural to transform their brands and, in turn, lead to significant growth.
Fast-food chain Denny’s is one example. The brand is looking to target young, multicultural diners with their campaign “See You at Denny’s,” which focused on illustrating a diverse, relaxed, and comfortable brand.
John Dillon, Chief Brand Officer at Denny’s, explained to Forbes: “It was important for us to tell our story to multiple audiences and to make sure we’re speaking to the cultural nuances of African-American consumers and Hispanic consumers, as well as the total market. Working with these three agencies executes those nuances and allows us to share who we are as a brand and the inclusivity and diversity that we stand for. We are a family brand and always have been and we are recognizing that the American family has evolved.”
Procter & Gamble is also betting big on multicultural after discovering that they record top performance among African American and Hispanic consumers in market share. Marc Pritchard, P&G’s chief brand officer, told the audience at the Association of National Advertisers’ (ANA) 2019 Multicultural Marketing & Diversity Conference that if P&G’s brands could match their general-market performance with multicultural audiences. “The size of the prize is big – up to $1 billion in extra sales just by achieving market shares equal to the national average on all of our brands,” Pritchard said.
Whatever your view on multicultural marketing, inaction is irresponsible
While reasonable marketers can disagree about multicultural marketing, all comprehensive marketing strategies must account for today’s increasingly diverse population. Whether you adopt the “minority majority” attitude, focus on cultural fusion, or embrace segmented targeting, successful marketing means recognizing and elevating a wide range of voices and cultures.
The podcast advertising market is becoming a force to be reckoned with. In fact, marketers are projected to spend over US $1 billion by 2021 according to the IAB and PwC. One recent transaction in the podcast M&A space caught our eye: the strategic investments in reVOLVER Podcasts by Latido Music.
Latido Music Partners Up with reVOLVER Podcasts
A source at Latido Music, a digital platform for Latin music fans, has told Portada that “for now, it is a minority stake in the double digits, but we are both optimistic about reVolver’s long-term success and ambitious, so you can draw your own conclusions.”
For now, it is a minority stake in the double digits.
The source adds that this was a strategic investment in every sense of the word. “We see reVolver as having a leadership position in its segment, and we like that its consumer base overlaps substantially with that of Latido Music.”
As with most target audiences in the digital age, the digital media industry for Latinx is very fractionalized. That is why, according to the source, ” a strategic investment in reVolver is something of a ‘horizontal integration’ strategy. We try to capture a greater mind share of this important audience across devices and content types, rather than trying to own the entire value chain of a single content type – which in this day and age is effectively impossible anyway.”
The amount of the investment has to remain undisclosed. However, the source adds: “that it is a graduated investment, meaning our stake in the company will grow over time.”
Shopping habits on and offline, brand loyalty, and mobile technology on fire this 2020! A summary of the most relevant consumer insight research. If you’re trying to keep up with the latest happenings, this is your one-stop-shop. Check out the previous consumer insights roundup here.
According to a new consumer survey from TD Bank, millennials made nearly four major purchases in the past year on average. In comparison, Gen Xers and Baby Boomers averaged 2.8 major purchases combined. Millennials not only spend more, but they are also more thoughtful about their purchases. According to the survey results, they spend more time, on average, researching major purchases than any other group. Compared to baby boomers and Gen Xers, millennials are also more likely to research products through a retailer’s website, social media, and third-party websites. Also, they’re more likely (39%) to research financing options than their elders (22%).
The 2020 Deloitte Global Automotive Survey, which questioned more than 35,000 consumers in 20 countries, found U.S. consumers are not very enthusiastic about paying for automotive technology. For instance, 60% of U.S. consumers are unwilling to pay more than $500 for advanced safety technology. In a similar way, 66% of surveyed Americans said they wouldn’t pay for advanced connectivity, 75% for infotainment, 58% for autonomy, and 54% for alternative engine solutions.
Valassis has released the findings from a study conducted with Kantar, which surveyed 1,000 U.S. consumers about their shopping habits. The study, The Future of How People Shop, found that 68% of consumers believe they have become better equipped to make informed purchase decisions compared with five years ago. Thus, 60% of consumers often research products online before making a purchase, and 62% said they closely read product labels. Many of them also rely on advertising, as 43% of consumers said targeted advertising should be able to guide them through the store to locate products.
Research by Soti, published by Mobile Marketer, has found that mobile technology is important for better retail experiences. More than three fourths (78%) of U.S. consumers said retailers that implement mobile technology for both shoppers and store employees enable a faster shopping experience. Almost half (45%) of shoppers said they prefer sales associates to use mobile devices for checkout on the sales floor rather than heading to the traditional cash register. In addition, Soti’s data shows 53% of consumers use credit and debit cards, while 23% prefer cash and only 11% use mobile payment apps.
According to a Criteo study which surveyed over 1,000 U.S. consumers, 73% of shoppers are willing to try new brands they have heard positive things about. Discounts and offers often drive consumers who decide to check out a new brand, agree 93% of respondents. Criteo found 57% of U.S. shoppers rely on apps to look at products and get ideas, 55% use them to check out ratings and reviews, and 58% to make purchases. Overall, Criteo found 52% of shoppers look forward to shopping in stores when they have time. On the other hand, 41% enjoy shopping in stores to understand what’s in style or new, and 37% prefer to do as much online shopping as possible.
According to our just-released survey “What Brand Marketers Need from MarTech in 2020″, advertising technologies for audiovisual media (Addressable TV, Video, Digital Audio and Display, and Programmatic) are the main investments items for the brand marketing community in 2020.
The Portada Survey “What Brand Marketers Need from MarTech in 2020″ sheds light on the structure of the growth of MarTech expenditures. Based on a poll of 100 brand marketers who are members of the Portada Council System, conducted in the fourth quarter of 2019,Addressable TV, Video, Display and Programmatic, and Digital Audio are pre-eminent investment areas in 2020. They are included in the overall category of Advertising & Promotion, which was chosen as the main overall MarTech expenditure priority by more than 56% of the surveyed brand marketers (see table below).
[table id=1 /]
Contents of “What Brand Marketers Need from MarTech in 2020”
1. Background: MarTech’s Relentless Rise
2. Main MarTech Expenditure Types per Category in the Survey
3. Survey Results: Brands are Planning to Invest in the Following MarTech Categories in 2020
Within Advertising & Promotion, Ad-Tech for Audiovisual Media Plays a Crucial Role
Snackable content opportunities, Gonzalo del Fa’s 2020 goal of making multicultural something organic across agencies/clients and more intelligence about what is going on in marketing and media right now. And Portada’s take on it.
Brands looking for Snackable Content Opportunities in 2020 (TikTok and Quibi)
We recently published a piece on the main opportunities and challenges for 2020 according to members of of the Portada Council System. These opps and challenges include Marketing in a world with a smaller Facebook, Advertising in a divisive political environment and Cross-screen measurement. Here another opportunity as seen by a senior brand marketing executive interviewed by Portada: “With our attention spans becoming shorter and shorter, I think the biggest marketing opportunities that I would like to explore in 2020 are TikTok and Quibi. I think snackable content is the direction that we are moving in, be it 60 seconds or 7-10 minutes. I hope to explore branded content partnerships & product placements on these two platforms in the near future and will be challenged to figure out what success looks like on these platforms.”
I think snackable content is the direction that we are moving in, be it 60 seconds or 7-10 minutes.
An Organic Integration of Multicultural into Brand Marketing Decision Making
“My main goal for 2020 is to make of multicultural something organic across all agencies and clients”, Gonzalo del Fa, president of GroupM Multicultural tells Portada. Del Fa, and his New Majority Ready™ Coalition, hit the topic on the spot. Multicultural marketing should lie at the very heart of Corporate America because the population of the U.S. is predominantly multicultural. This fact should also be reflected in how multicultural marketing opportunities are incorporated into brand marketing decision making. To “make multicultural something organic” means to make decision makers at corporate marketing departments and agency media buying units aware of the opportunity and integrate its discussion organically into brand marketing decision making. (Multicultural) marketing will only work when data analysts and marketing executiveswith budget decision making power work together in the same business unit (for an example check out Pepsi).
My main goal for 2020 is to make of multicultural something organic across all agencies and clients.
Amazon’s Expanding Ad Sales Team
The more consumers use Amazon’s platform, the more advertisers are willing to place ads on Amazon Advertising’s network. The “other revenue” line in Amazon’s P&L amounted to almost US $3.6 billion and grew by 45% in the third quarter of 2019. The majority of that revenue are advertising revenues. Not surprisingly Amazon is beefing up its ad sales teams. Also in multicultural; Fabio Brunelli was just appointed as Head of Multicultural Ad Sales U.S. for Amazon.
With most broadcast companies loosing linear TV advertising revenues in the order of 10%-20% annually, no wonder that Comcast’s NBC is betting heavily (a US $2 billion investment spread over 2020 and 2021) on its streaming platform Peacock. Contrary to many of its competitors in the crowded streaming service market, Peacock is mostly an advertising revenue bet. Matt Strauss, Chairman Peacock and NBC Universal, says that measurables for the new streaming service are driven in three ways: Active accounts (accounts streaming each month); Engagement (hours watched per account); and ARPU (Average Revenue per User). NBC expects to have between 30 to 35 million subscribers by 2024. By 2024, NBCU expects to break even with an ARPU of $6-7 (mostly advertising revenue based), revenue of US $2.5 billion per year. Comparatively, Hulu generates $10 per sub on advertising today, Strauss notes.
Sorrell’s Non-Traditional Marketing Bet S4 Capital Now Includes Circus Marketing
S4 Capital, the Martin Sorrell backed holding company recently acquired Mexico City-based digital content agency Circus Marketing. Circus will continue to have a presence in the U.S. through its Santa Monica, Los Angeles office, a Circus executive tells Portada. S4 Capital is merging Circus into MediaMonks, the Dutch digital production company which also has a strong presence in Latin America. The common thread of all S4 Capital acquisitions is that “none are traditional marketing entities, rather, they’re very digital at their core, whether that be related to production, creative, marketing, programmatic or data,” Jay Pattisall, a principal analyst at Forrester, told AdExchanger.
Pepsi announced an integration with Telemundo’s, through which it will become the first-ever beverage sponsor of La Voz, the Spanish-language edition of NBC’s “The Voice.” As the show’s first-ever beverage sponsor and prizing partner, Pepsi will take the season two stage by storm, celebrating Latin music and the talented phenoms giving everything to become the next big musical superstar. The premiere episode of season two of “La Voz” is set to air this Sunday, January 19th.
The new investment reflects Pepsi’s Hispanic Business Unit commitment to Hispanic Marketing and to “elevate the voice of the Hispanic consumer”, Esperanza Teasdale, VP & General Manager at PepsiCo’s Hispanic Business Unit , tells Portada. “The La Voz sponsorship, which taps into the Pepsi brand’s rich heritage in music and entertainment, allows us to celebrate Hispanic culture and passion points and support the next generation of talented musicians who aren’t afraid to live life their way and chase their musical dreams,” Teasdale adds.
The campaign is focused on Fusionistas who celebrate both the Hispanic and overall American culture.
Pepsi will level up the season two “La Voz” prize, bringing the original $100k grand prize up to an epic $200K. The integration will span the blind auditions, battle rounds and live performances. It will feature cups branded with Pepsi in the coaches’ chairs and include Pepsi branding across a number of touchpoints: multi-screen presence throughout the season, in-show and out-of-show custom activations on linear and social and prominent thematic storylines woven throughout the season.
La Voz Sponsorship with the Fusionistas Target in Mind
Teasdale, a half Ecuadorean and half Colombian executive, notes that “Pepsi understands the passion point that Hispanics have with music. It’s in their DNA.” She adds that the campaign is focused on Fusionistas who celebrate both the Hispanic and overall American culture.”
“Eso es lo que quiero”
The integration will also bring to life and feature the newest U.S. Pepsi campaign tagline, “That’s What I Like” (“Es Lo Que Quiero”). Launched earlier this month, the new tagline is the brand’s first in two decades and is inspired by the most loyal Pepsi drinkers, who proudly like what they like and live their lives out loud without worrying about what others will think – whether that’s belting out a song at karaoke, clapping at the end of a movie, or simply enjoying a Pepsi.
Pepsi unveiled five new national commercials to launch the new tagline, three of which were developed in partnership with the Pepsi brand’s Hispanic agency, Alma (“DJ BBQ,” “Subway,” and “Lavandería). The new ads spotlight various everyday people getting lost in a moment and finding themselves dancing in unexpected places or situations, despite the amused gaze of onlookers. Each spot is underpinned by a variety of upbeat music spanning hip-hop, dance hall, Latin pop tracks and more. The spots will air across English and Spanish-speaking properties to reach the brand’s ever-growing fusionista fans, Latinos celebrating and blending their Hispanic and U.S. cultures.
Radisson Anápolis: recognized hotel brand Radisson announced the opening of Radisson Hotel Anápolis at Avenida Oscar Mohn, No. 250, Anápolis, Brazil. This upscale hotel is perfectly positioned in one of the fastest-growing cities in Goiás, providing a convenient spot for guests interested in checking out the Brasil Park Shopping, or business travelers visiting companies like Vitamedic orLinea Alimentos. The hotel is also conveniently located near Terminal Rodoviário Josias Moreira Braga bus station and Goiânia Airport (GYN).“Our partnership with Atlantica Hotels allows us to bring the bright, inviting and balanced feel of the Radisson brand into vibrant cities like Anápolis, Brazil,” said Frances Gonzalez, vice president of Operations for Radisson Hotel Group in Latin America.Atlantica Hotels is a licensee for Radisson Hotel Group’s brands in Brazil, including Radisson Blu, Radisson, Radisson RED and Park Inn by Radisson. The two companies have enjoyed a longstanding relationship in Brazil that now includes 16 hotels in operation.
Health and beauty consumer packaged goods company The Yield Growth Corp.announced that it ships its first products to OMG Colombia, the subsidiary of Organic Medical Growth OMG3 Inc. (“OMG3”) in Latin America, based in Colombia, as part of a 5 year distribution deal for Yield Growth’s Urban Juve skin care line. Today, 1,800 products are being shipped, in partial fulfillment of OMG’s first product purchase order in anticipation of imminent completion of regulatory approval to sell Urban Juve products in Colombia and progressively in other parts of South America.According to Goldstein Research, the Latin America cosmetics market reached a value of USD US$31.98 billion in 2017 and is anticipated to grow at a CAGR of 4.49% during the forecast period 2017-2025.OMG3 is in the process of distributing Urban Juve skin care products in Colombia and other countries of Latin America. Through its Colombian partner Ortix, OMG has access to a distribution channel of over 44,000 pharmacies in South America and has partnered with on-demand delivery giant, Rappi, to sell products through its e-commerce platform.
US carmaker General Motors has decided to exit Thailand market.The brand will withdraw the Chevrolet brand from Thailand by the end of 2020, and said that China’s Great Wall Motor (GWM) has agreed to buy over its manufacturing plants in Rayong.GM’s co-ordinated retreat is part of the company’s plan to exit unprofitable markets including Europe, while focusing on North America, China, Latin America and South Korea. With the planned sale of its Thai plant, GM has essentially given up on the rest of ASEAN as well, as the Land of Smiles is the company’s regional hub.GM is “focusing on markets where we have the right strategies to drive robust returns, and prioritising global investments that will drive growth in the future of mobility,” especially in electric and autonomous vehicles, GM chairman and CEO Mary Barra said in a statement.
Interpublic Group agency Golin announced a new client partner to its international roster. Leading travel loyalty and benefits brand, Collinson, appointed Golin the global PR and communications Agency of Record (AOR), following a competitive pitch. The partnership will be led via a dual hub model from the Golin London and Golin Hong Kong offices, and the work will begin immediately.As AOR, Golin will head up PR and communications for Collinson with particular focus in Brazil, China, Hong Kong, India, UAE, the UK and the US; with further markets to be activated in Europe and Asia. The agency’s first charge will be to build awareness of Collinson’s integrated expertise in loyalty and travel experience, showcasing the group’s breadth of capabilities under one single brand voice and messaging.
Brazilian plant-based startup Fazenda Futuro, recently valued at US$100 million, will launch vegan sausages made with a seaweed skin for crispiness next month. The sausages are made with a blend of pea, soy, and chickpea protein with beetroot added for a “rosy color”. The products are free from GMO ingredients, food colorings, artificial flavors, or enhancers and the pork flavor comes from natural flavors and spices. They are coated with a neutral-tasting seaweed ‘skin’ that emulates the crispiness of traditional pork sausages.The sausages, which will launch in April in Brazil and the Netherlands, have a 17% protein content and add to Fazenda Futuro’s portfolio of products consisting of its Futuro Burger, ground meat and meatballs.Although Fazenda Futuro is a newcomer – it was founded in May last year – it has quickly made a name for itself in the plant-based category. In July last year, the startup received its first round of investments with Monashees and investment firm Go4it Capital acquiring an 8.5% stake for US$8.5 million. The transaction valued Fazenda Futuro at around US$100 million.The company was founded by Marcos Leta, a Rio de Janeiro-based food entrepreneur and investor.
JOIN PORTADA’S KNOWLEDGE-SHARING AND NETWORKING PLATFORM: To find out about Portada’s new networking solutions targeting the decision makers of the above campaigns, please contact Sales Director Leslie Zambrano at Leslie@portada-online.com.
Endemol Shine North America has appointed award-winning licensing agency Tycoon Enterprises to serve as its exclusive licensing agent for the “MasterChef” television property in Latin America. MasterChef’ is one of the most successful food format in the world with over 60 localized versions across the globe including 10 in Latin America alone.Tycoon Enterprises will expand the “MasterChef” franchise in key categories including food and beverage, cookware and live experiences. Endemol Shine Brazil will continue to represent the brand in their market independently.In addition to “MasterChef,” the partnership will also look to explore opportunities in all categories for Endemol Shine series “¿Quién es la máscara” (“The Masked Singer”), “Te la Juego” (“Deal or No Deal”), “Fear Factor” and “Wipeout” in Mexico.
2020 promises to be an exciting year in marketing. We asked brand and media agency executives that are part of the Portada Council System where they see the main challenges and opportunities.
As the new year fast approaches, Portada touched base with brand marketers and media agency executives, members of Portada’s Council System. We asked them what 2020 could bring in terms of challenges and opportunities. Among the most alluring opportunities and/or challenges, they cited: preparing for a world without (or a smaller) Facebook, more proprietary data for brands, efficient cross-screen metrics, marketing in a divisive political scenario, and finding synergies between Hispanic and general marketing campaigns.
2020 opportunities: Preparing for a world without (or a smaller) Facebook
Marketers’ reliance on social media as a marketing and lead-generation tool has been parallel to Facebook’s rise to social media heaven. But has the social media giant reached its zenith or, even worse, is it starting to decline? “How to future proof my business in a world without or a smaller Facebook. In performance marketing, Facebook is still king, and also in terms of reach and signals of consumers’ interests and intent. What happens if Facebook changes? Or if there is regulation? Or if it doesn’t enjoy the popularity of generations like Z and beyond? This is more of a longer-term challenge, ” says John Sandoval, Senior Brand and Latino Marketing Manager at Intuit.
How to future proof my business in a world without or a smaller Facebook. In performance marketing, Facebook is still king, and also in terms of reach and signals of consumers’ interests and intent. What happens if Facebook changes? Or if there is regulation? Or if it doesn’t enjoy the popularity of generations like Z and beyond?
Brands need more ownable and proprietary data
To Peter Lee Brown, Brands & Communications Strategy, at Nestle, “Data has become commoditized, brands need more ownable, proprietary data“. Related to this challenge, Brown sees an opportunity for brand marketers in terms of “lean innovation and in-housing capabilities”, as he expects them to “lead to greater speed, creative expertise, and control.”. According to Brown in the current scenario of perpetual disruption, “brands can drive disruption and become challengers.”
Ariela Nerubay, Chief Marketing Officer at Curacao, also cites disruption, in this case in the retail space as an alluring opportunity: “Disruption of the retail in-store experiences to drive traffic to physical stores.”
Making second-generation Hispanic campaigns attractive to non-Hispanics…
Successful marketing to the LatinX consumer (second and third-generation Hispanics) is paramount to the progress of Corporate America in 2020 and beyond. Ariela Nerubay, Chief Marketing Officer at Curacao, tells us that “How to develop targeted campaigns for the 2nd and 3rd gen Hispanic on general market media that also attracts non-Hispanics” is one of the main challenges for her company in 2020. Similarly, she also cites developing a “lead generation strategy for Hispanic and non-Hispanic customers with same creative” as a challenge and opportunity.
…in a world where it is increasingly “not good” to be the “other”.
Marketing in a politically convoluted environment that is often divisive has been an important topic at Portada Council System workshops in 2019. Going into 2020 it will continue to be a challenge for brand marketers. As Intuit¨s John Sandoval notes “Specifically to multicultural marketing, in a country and increasingly in a world (last week’s UK election) where it is ‘not good’ to be the other or a minority or a population group other than the ‘mainstream’, how do we get the resources, attention, etc, from across the landscape? What if Trump is re-elected for another 4 years?”
Cross Screen Measurement to understand Reach and Frequency
The ascent of video marketing, partly a result of the substitution of TV media budgets by video, is bringing in more 2020 opportunities for media buyers. Darcy Bowe, SVP, Media Director, Starcom USA tells Portada that “cross-screen measurement that allows us to understand overall reach and frequency, including understanding where truly incremental reach is being driven” is an important opportunity for efficient media buys in 2020. Bowe is part of Starcom’s Video Center of Excellence, where she focuses on investing in all video media as well as creating content and building integrated programs in the video media space on behalf of her clients.
Given the range of CPMs and creative units across media types, how do we value an impression in each type and how does that impact ROI?
Bowe also notes that, given the range of CPMs and creative units across media types, it will be important to develop solutions for how impressions should be valued in each type and how this impacts ROI. To resolve the relationship between performance and branding (awareness) will be another challenge: “How can we best create media plans that balance targeting the most likely consumer to interact & transact with the brand as well as find broad reach to create awareness?”