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What: A summary of the most relevant consumer insight research in the U.S., U.S. Hispanic, and Latin American markets.
Why it matters: If you’re trying to keep up with the latest happenings, this is your one-stop shop.

 

 

  • According to Zenith‘s Media Consumption Forecasts, people around the world will spend an average of 800 hours using the mobile internet this year. By 2021 the total will rise to 930 hours, or the equivalent to 39 full days. Across the 57 countries that were surveyed, people will spend a collective 3.8 trillion hours using the mobile internet this year, rising to 4.5 trillion hours in 2021.

 

  • FinTech adoption among consumers has nearly doubled over the past 18 months, according to the latest EY Global FinTech Adoption Index. Globally, 64% of digitally-active consumers across 27 markets use FinTech. US consumer adoption has grown 29.5% in the last four years, and 96% of global consumers are aware of at least one money transfer and payment FinTech service.

 

  • Mobile marketing company Motive expected 77% of Americans to celebrate Fathers Day, spending about US $16 million on gifts. It’s likely that most fathers got clothing (43%), giftcards (42%), and books & CD’s (22%).

 

  • Research by Accenture found more than half of consumers said they would pay more for sustainable products designed to be reused or recycled. The survey of 6,000 consumers in 11 countries across North America, Europe, and Asia found that while consumers remain primarily focused on quality and price, 83% believe it’s important or extremely important for companies to design products that are meant to be reused or recycled. Nearly three-quarters (72%) of respondents said they’re currently buying more environmentally friendly products than they were five years ago, and 81% said they expect to buy more over the next five years.

 

  • Sumo Heavy’s survey of more than 1,000 U.S. consumers found that only one out of five consumers have shopped using a voice assistant like Amazon Alexa or Apple’s Siri. Less than half (46%) of U.S. consumers said they never use voice assistants, while another third said they rely on them regularly.  Fewer than half (42%) of frequent voice assistant users have shopped with voice commands.

 

  • According to a survey by Deloitte, about 53% of people born between 1983 and 1996 now subscribe to gaming services, versus 51% who pay for television. That is compared with Deloitte’s survey last year, in which paid subscriptions among millennials were 44% for video games and 52% for television.

 

  • UBS Evidence Lab‘s survey of 2,029 adult consumers who visited a fast-casual restaurant at least once a month found that McDonald’s is the best positioned among its peers. According to the survey, the most commonly cited reasons to visit McDonalds more often are good value and promotions. Only 18% of respondents said that nothing would make them go more. Burger King and Wendy’s were ranked in second and third place, respectively.

 

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Nigel Morris, currently serving as a Chief Strategy and Innovation Officer ofthe Dentsu Aegis Network, has announced that he will step down from his position as of March, after 26 years at the company.

 

 

 

 

 

 

Publicis Media has announced the appointment of veteran Lauren Hanrahan to the role of CEO of Zenith US, Moxie, and MRY. In this role, she will be responsible for transforming Zenith’s roster of clients and accelerating the growth of the agency. Based in New York, she will report to Tim Jones, CEO, Publicis Media Americas, and succeeds Sean Reardon.

 

 

 

 

 

 

Byron Allen’s Entertainment Studios has tapped former NBCUniversal and Nexstar Media Group executive Tom O’Brien as President of The Weather Channel, effective immediately. O’Brien also will hold the title of EVP of Allen Media, LLC. In his new position, O’Brien will oversee all television and digital operations of The Weather Channel television network and its streaming service Local Now.

 

 

 

 

Meredith Starkey has joined the Carolina Panthers as Chief Marketing Officer. Starkey prevoiusly spent nearly 10 years at T-Mobile, where she was Vice President of Marketing – Sponsorships and Events. Starkey will begin her new role in late March.

 

 

 

 

Cynthia Dickson is now Executive Director, Marketing & Media Strategy, at Native Tongue Communications, a new agency that has an exclusive partnership with OMD.

 

 

 

 

 

Prisa Brand Solutions has announced the appointment of Evelyn Adames, based in New York, and Edith Carranza, based in Miami, to lead the company’s sales strategy and business development in the United States.

 

 

Evelyn Adames brings more than 10 years of experience in guiding brand development using a total market approach. She has worked with Cox Media Group, Latina Media Ventures, and Spark Foundry, where she managed the clients’ accounts and strategic planning for advertisers and agencies.

 

 

 

 

Edith Carranza brings more than 20 years of experience in the U.S. and Latin American media industry. Prior to joining Prisa Brand Solutions, Carranza worked with Hola TV as the head of advertising sales, where she structured and set up new advertising sales business units, increasing ad revenue streams year after year.

 

 

 

 

Isobar promoted Ricardo Salema from Executive Creative Director to the newly created role of Chief Creative Officer for the U.S. He joined the agency 12 years ago.

What: Three top ad forecasters have revised their ad investment growth predictions for 2019. While GroupM has downgraded 2018 growth expectations from 4.5% to 4.3%, Magna Global and Zenith estimate global advertising will increase slowly.
Why it matters: If these predictions are true, it would mean that while global advertising is still growing, it’s doing it slowly, which points to a saturation in media.

GroupM, Magna Global, and Zenith have released their reports of 2019 ad spending forecasts. Though they predict growth, it will be slower than in 2018. If we look at each of the forecasts, we can see their different predictions are directly related to the fact that digital advertising has been growing at great speed since 2010. However, it might be starting to grow less rapidly, giving way to certain formats to become protagonists, such as video.

GroupM Downgrades Ad Investment Growth Predictions

According to GroupM’s statement, WPP’s media investment group downgraded 2018 growth expectations from 4.5% to 4.3%. 2019 growth projections are also whittled from 3.9% to 3.6%, with total new investment anticipated to reach US $19B instead of the US $23B earlier predicted. Stress on the auto category stood out in feedback from GroupM’s worldwide network, as did the absence of any rebound in CPG investment with traditional media.

“GroupM’s still strong but slightly fraying 2018 view ties to macro questions: tighter money, China’s slowing growth, and the potential for pricey trade wars,” said Adam Smith, Futures Director.

GroupM forecasts that ten countries will provide 83% of all 2019 growth. China remains the largest contributor, but 2019 will be the nation’s sixth successive year, with single-digit ad growth. It will mark its lowest growth rate yet recorded. That said, its $90 billion ad market is second only to the U.S. and has doubled since 2010.

Other big contributors to spending growth next year include the U.S., India, Japan and the UK.

Magna Global, on the Other Hand, Raises its Growth Forecast

While Magna released its forecast report right about the same time as GroupM, its results were quite different. Magna, which measured 2018 in retrospect, said global ad spend grew by a record 7.2% this year to $552 billion. And while GroupM revised its ad spend downward, Magna raised its own 2019 forecast from 4.0% to 4.7% to reach $578 billion. Magna’s optimism for 2019 is thanks to a robust global economy and cyclical events, like the US midterm elections and World Cup, that added $6 billion of incremental ad spend to the market.

According to Ad Exchanger, Magna said digital will make up half of global ad spend by 2020, but GroupM still forecasts digital’s share at 42% in 2019. Of the digital pie, Magna said search grew 16%, video 29% and social media 33% this year, while mobile ad sales grew by 32% to make up 62% of digital impressions. GroupM did not break out ad spend by format.

Zenith’s Forecast Slightly Down

Zenith, part of Publicis Media, has forecast that global ad expenditure will grow 4.5 percent in 2018, reaching $581 billion by the end of the year, boosted by the Winter Olympics, FIFA World Cup and U.S. mid-term elections.

The forecast for 2019 is down slightly from its September prediction of 4.2-percent growth, now forecast at 4 percent, but the 2020 forecast is stable at 4.2 percent. The 2021 forecast is for 4.1-percent growth. Overall, Zenith expects advertising expenditure to grow behind the global economy as a whole throughout its forecast period.

By region, North America’s ad market has been growing “fairly steadily but unspectacularly” since 2010, the firm said. North American ad-spend is expected to grow 3% in 2019 and to average 3.4% growth each year to 2021.

By 2021 Zenith expects television and video will have a combined 49% share of global “display” – a higher share than television ever achieved on its own. Further, linear TV’s share is projected to drop to 29.9% in 2021, the lowest point since Zenith started tracking the medium in 1980.

What: Zenith’s Advertising Expenditure Forecasts, published today, expect two-thirds of growth in advertising expenditure by 2020 to come from paid search and social media ads.
Why it matters: Paid search has undergone important changes in recent years. More sophisticated intelligence is necessary to compete in the next step, which is voice search.

According to Zenith’s Advertising Expenditure Forecasts, search and social media will be the biggest contributors to ad spend growth by 2020. In recent years, search platforms, agencies, and brands have begun to apply ever more sophisticated artificial intelligence techniques to improve targeting, messaging and conversion. Both online and offline, search is becoming more integrated with commerce, as retailers use location and store inventory data to match active shoppers directly with the products they’re searching for. All this attracts higher performance budgets from brands.

Even though the natural next step is voice search, there has been little direct advertising through voice assistants so far. When users make a voice search, smart speakers usually present only the first organic result. Smartphones may present more results, but still not as many as a manual search. Therefore, brands need to identify the real keywords in order to produce content that puts them among organic results. Zenith believes brands need to concentrate on voice SEO.

Brands will need to focus more on content and SEO to secure first-place organic results for their most important keywords.

To a great extent, explains Zenith, social media advertising has grown so quickly because static ads have been replaced with more engaging video ads that have acted as complements to TV ads rather than as competitors, but platforms are now competing with television. Overall, Zenith expects social media adspend to grow by an average of 16% a year to 2020, twice the rate of paid search.

“Better use of AI and integration with retail is driving continued strong growth in paid search,” said Jonathan Barnard, Zenith’s Head of Forecasting and Director of Global Intelligence. “As voice search becomes more important, though, brands will need to focus more on content and SEO to secure first-place organic results for their most important keywords.”

“Voice search is just one way in which AI is transforming the way consumers search for information and entertainment, and the way brands communicate with consumers,” added Vittorio Bonori, Zenith’s Global Brand President. “By linking media investment with commerce, and broad awareness with personalisation at scale, technology is giving brands new tools to create growth.”

People change positions, get promoted or move to other companies. Portada is here to tell you about it.

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Univision Communications, Inc announced that Isaac Lee has decided to step down as Chief Content Officer.  He joined Univision in December 2010 as President of News. Lee will start his own production company.

 

 

 

 

 

Reprise appointed Renee Marquardt as general manager for the US. Marquardt joined Reprise from digital marketing and advertising agency Didit, where she was chief operating officer.

 

 

 

 

 

Marketing veteran Elizabeth Brady has been hired by Allstate as executive VP-chief marketing, innovation and corporate relations officer. Prior to joining Allstate, Brady worked at Kohler, Publicis and BBDO.

 

 

 

 

 

Jon Forsyth has returned to the industry as strategic partner at a new communications network, Troika/Mission Group. Forsyth’s role will include growing the business in the US and the UK, as well as working with clients on strategy.

 

 

 

 

 

The Body Shop has appointed Lionel Thoreau as global brand director and Elen Macaskill as  global customer director. Thoreau joins  from L’Occitane Group and Macaskill held the role of chief marketing officer at The Body Shop.

 

 

 

Zenith has appointed Jos Smyth as  global head of performance. In this role, Smyth’s mission will be to drive performance services for global clients. He joins Zenith from Digitas.

 

 

 

 

 

Liliana Aristizabal has been appointed as senior vice president of eastern region sales by Entravision Communications Corporation. Aristizabal will be based in New York, and will oversee Entravision’s national spot TV, radio and Entravision Solutions on the East Coast.

 

 

 

 

Toyota is perhaps the automaker most committed to U.S. multicultural audiences. One example is the Toyota opportunity exchange which took place last Monday and Tuesday in Covington, Kentucky. But is Toyota’s overall marketing strategy about to change in the U.S. as it recently did in Europe? In that continent Toyota announced a plan to create a more customer-centric business model by moving its creative, digital, content and media business from Publicis Groupe to WPP-backed The&Partnership. If Toyota were to make changes in the U.S., where it spent US $1.4 billion in advertising in 2015, what agencies and decision makers would be impacted? Let’s take a look.

“Our ambition is to strengthen Toyota’s brand image in Europe by producing ever better cars, communicating a clear brand purpose and maximizing the effectiveness of our media investments. We believe a new business model is required to achieve this – one that is more integrated and customer-centric – with digital transformation at its heart,” Karl Schlicht, executive vice president of Toyota Europe, said in a statement. As a result Toyota Motor Europe moved its creative, digital, content and media business from Publicis Groupe to WPP-backed The&Partnership, which will create a network of dedicated hubs called &Toyota for the auto maker. Media will be done by m/Six, a UK media planning and buying agency backed by WPP. The European account, estimated  at over US $300 million, was previously at Saatchi & Saatchi and Zenith.

Who Would be Impacted in the U.S.

So will this happen in the U.S? We don’t know, perhaps some of it may already have happened when in 2013 Jack Hollis Group Vice President, Marketing called for a more integrated “Total Market” approach between Toyota’s multicultural agencies and its general market agency. The new team, called “Total Toyota” was created so that the general-market advertising traditionally handled primarily by Saatchi would have more input from Toyota’s African-American agency Burrell Communications, Hispanic-market agency Conill and InterTrend Communications, which handles Asian-American advertising for the automaker, Hollis said.

Zenith, part of Publicis Media, is the media buying agency for Toyota in the U.S., Mexico and Puerto Rico and also for Lexus (general market).

Hispanic marketing agency Conill Advertising has Toyota Motor Sales among the agency’s roster of clients. Among the executives working on Toyota at Conill is  William Formeca,  Director Communication Strategies and is part of the Toyota Media Team.

Toyota brand Lexus works with agency Walton Isaacson, where Liz Palato and Alvaro Salinas are both media leads on the business. On the other rhand, Mike Marinero is in charge of the Hispanic marketing efforts.

Find out more on all the decision makers behind the Toyota and Lexus brands in Portada’s Interactive Database of Marketers targeting U.S. consumers.. Plus detailed contact information on more than 2,000 Corporate Marketers and Agency Executives targeting U.S. consumers. GET YOUR FREE TRIAL to PORTADA’s Interactive Database! Contact Sales Research Manager Silvina Poirier if you have questions: silvina@portada-online.com.

Additional Key Toyota Brand Marketers

David Chung Director, Advertising & Marketing Management

Mia Phillips is National Manager of Brand, Multicultural & Crossline Marketing Strategy of Toyota USA

Lisa Materazzo Corporate Manager, Media Strategy & Digital Engagement

 

Find out more on all the decision makers behind the Toyota and Lexus brands in Portada’s Interactive Database of Marketers targeting U.S. consumers.. Plus detailed contact information on more than 2,000 Corporate Marketers and Agency Executives targeting U.S. consumers. GET YOUR FREE TRIAL to PORTADA’s Interactive Database! Contact Sales Research Manager Silvina Poirier if you have questions: silvina@portada-online.com.

Expenditure on luxury advertising will rise by 3.0% in 2016, up from 1.9% in 2015, according to Zenith’s Luxury Advertising Expenditure Forecasts second annual edition. Luxury advertisers will spend a total of US$10.9bn across the top 18 markets(including The United Stated) in 2016, up from US$10.6bn in 2015. The USA is the largest luxury ad markets, accounting for 45% of luxury adspend in 2015, according to the report.

0001This is the second annual edition of the Luxury Advertising Expenditure Forecasts, which examines expenditure on luxury advertising in 18 key luxury markets.* This report focuses specifically on luxury advertising, together with the sub‐categories of luxury automotive, fragrances & beauty, fashion & accessories, and watches & jewellery.

Adspend global total was buoyed by strong growth in North America (3.6%) and Western Europe (4.7%).

North America will stay strong, with 3.9% growth. Overall, the report forecast 3.0% growth in luxury adspend across our top 18 markets in 2016. Luxury advertising is growing less rapidly than advertising as a whole.

The USA is the largest luxury ad market, accounting for 45% of luxury adspend in 2015.

Across the 18 markets, luxury advertising grew by 2.9% in 2014, compared to 5.6% for advertising as a whole, and 1.9% in 2015 (compared to 4.1%). The report forecast this underperformance to continue, with luxury advertising growing 3.0% in 2016 compared to 4.5% growth across all categories.

The USA, along with China, is driving growth in luxury advertising Between 2015 and 2017. In total, luxury advertising is expected to grow by US$705m. 82% of this growth will come from the USA (US$347m).

The USA is the largest luxury ad markets, accounting for 45% of luxury adspend in 2015.

 

US LUXURY MARKET

The USA continues to expand, with GDP growth rates of 2.5% and 2.6% in 2015 and 2016 according to the IMF and an unemployment rate at 4.9%. Yet consumer confidence is declining compared to last year.

The rise of the dollar enabled the US to emerge as the strongest global region for the purchase of personal luxury goods in 2015. However, the strengthened dollar also poses a problem for many foreign tourists, who are now travelling elsewhere.So although local consumption of luxury goods increased during 2015, this growth barely managed to offset the drop in tourism revenue on the US luxury goods market.

That said, luxury adspend will continue to grow in the coming years – by 3.9% in 2016 and 3.3% in 2017, the report forecast. TV will remain the main medium for luxury advertising (42% market share in 2015) but digital should overtake print to become the second luxury medium in 2016 (with 29.5% market share compared to 28.9% for print).

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Luxury experiential travel remains robust

Experiential travel was relatively unaffected by the recession and has done well during the recovery, thanks in part to millennials, who still purchase luxury goods but value customized experiences over items.

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Influence of new media

Despite being latecomers to the digital world, an increasing number of luxury brands are embracing digital technology, aiming to understand the changing behaviours and desires of luxury consumers and enhance brand awareness by adopting a fresh approach instead of continuing to invest in spaces where their consumers know and expect to see them. The luxury market is turning towards a holistic consumer experience, both in stores and across online platforms. Brands are using mobile devices, digital out of home and even 3D technologies to create a coherent and engaging luxury experience.

M-commerce should continue to rise in 2016, with launches of “shoppable” apps by luxury retailers-turned-publishers, such as Net-a-porter with Porter magazine or Barneys with The Window, an online retail blog that has become a branded print magazine.

Social networks that propose new formats such as Facebook’s Canvas should enable advertisers to create immersive, entirely branded app-like experiences.

Digital will be the largest luxury advertising medium in 2017.

Digital advertising is by far the biggest contributor to the growth in luxury advertising, growing consistently at double‐digit rates.

Digital media adspend by luxury advertisers is expected to increase by US$837m between 2015 and 2017. Over this period, television, radio and cinema will increase by a total of US$26m between them; outdoor will shrink by US$10m; and print will shrink by U$150m.

By 2017, print will account for 28.6% of total luxury adspend, down from 31.9% in 2015. TV’s market‐share will also decline over the same period, from 32.7% in 2015 to 30.7% in 2017.

Digital’s market‐share will increase from 26.3% in 2015 to 32.1% in 2017, when it will overtake TV and print to become the single largest medium for luxury advertising.

Print remains the most important medium for ‘high luxury’ advertisers Despite its decline in market‐share, print remains particularly important to luxury advertisers, specifically those in the fashion & accessories and watches & jewellery sub‐categories.

In 2015, fashion & accessories advertisers spent 83% of their budgets in print, and watches & jewellery advertisers spent 60%. Print titles – especially glossy magazines – provide high‐quality, immersive yet relaxed reading experiences, a particularly suitable environment for luxury advertisers wishing to showcase their brand values.

Digital media adspend by luxury advertisers is expected to increase by US$837m between 2015 and 2017

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Data informed platforms

Luxury advertisers were slow to adopt programmatic buying compared to other advertisers, instead favouring content alignments, because programmatic initially valued efficiency and eyeballs over immersive experiences in premium environments. Luxury advertisers are just beginning to use data to target affluent individuals – using purchase behaviours, credit card info and travel data. For example, Pomellato has begun using its own web data to retarget current customers who are likely to be strong brand advocates. They also use look-a-like modelling to reach new, potential customers based on current customers’ online behaviours like credit card usage, travel and the day of the week they are most likely to make a purchase.

In-house native advertising

Native advertising is becoming a dominant advertising format and should continue to grow, driven by mobile devices and social networks. A lot of publishers and advertisers have developed in-house native advertising studios to keep control of content creation. Condé Nast launched its much buzzed-about in-house native advertising studio 23 Stories, which allows advertisers to work directly with its own editors on branded content. Marriott also launched its owned creation studio, “M Live”.

*The 18 markets are China, Colombia, France, Germany, Hong Kong, Italy, Malaysia, Mexico, the Netherlands, Peru, Russia, Singapore, South Africa, South Korea, Spain, Taiwan, the United Kingdom and the United States of America.

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