According to the study of Harris Poll (conducted on behalf of Lithium Technologies), that addressed more than 2,300 consumers of all generations, more than half of all digital natives (56%) report to cut back or stop the use of social media platforms entirely.
Even more, 75% of the responding Millenials stated that they feel stalked by brands on social platforms. The reason: The eager way brands do target them in their news feed with the ambition to build trust and loyalty with their customers or consumers via social media platforms in the U.S.
So, what does this mean for brands? Do brands have to live according to a transformed version of the former cold call prevention: „Don’t stalk us, we follow you!“? The study suggests that direct targeting on social platforms via advertising might result in losing customers. It would be more effective to engage and to be present on the channels they use frequently. And also if brands might be tempted to leverage the huge purchasing power coming from the modern generations (Millennials and Gen Z make up 50% of the population), brands need to be careful not to waste the potential of social media and really meet their personal expectations. How challenging this might be in the end…
„The promise of social technologies has always been about connecting people, not shouting at them, and the brands that don’t do this risk their very existence.“ Rob Tarkoff, President&CEO, Lithium Technologies.
But how can brands build trust, the study also asked? A question that is also raised in a bi-annual study from Nielsen and might be evaluated in comparison with those results. Obviously, online is their general source of information but their trust in online exceeds that of former generations by far.
While in the Nielsen study, personal „recommendations from people I know“ are leading, Lithium sees „online sites with product reviews“ as the highest form of online trust creation. That websites are definitely not „dead“ can be seen that both studies see websites kind of in the second place. And, whereas Lithium sees „communities of like-minded people“ in the third place (just think about what their main product was…), Nielsen sees editorial content still a very important source.
In terms of service, the Lithium study shows that Millennials contact brands online (79%) and expect a response back within the same day – almost 10% more than Baby Boomers. So, if brands do not actively monitor and engage with the younger generations online, their brand loyalty might go down soon. The best way to interact with Millennials is described in a quote the study also delivers…
„I go on social media to see and know what my friends are doing. I don’t want to see ads clutter my news feed. If I’m interested in a product or service, I know where to look. Social media is a place for us to connect with our friends, not be attacked by advertisements.“ Mallory Benham, Graduate Student (23)
So, what are your learning on targeting Millennials and Gen Z via ads on social media?
They blog from the first row at catwalks. They share cool design gadgets on Instagram. They strike a pose with a selfie in front of 5-star hotels on Pinterest. And, they record „Let’s plays“ for Youtube while testing the latest computer games. The one thing they have in common? They are online influencers. A digital species that challenges and changes the marketing world of models, testimonials and the publishing industry.
According to an annual Nielsen study, it is a common knowledge that people trust most in recommendations of people they know. In the past, marketers put models or celebrities in this „recommendation seat“. It was meant to address two benefits: Brands intended to grasp some of the consumers’ attention by trying to hitch-hike on the wave of VIP awareness and public relevance. And, they used the reach of magazines and the trust those public voices had for the people.
It seems to me that the tables are turning now, and marketers have to rethink their brand extension strategy.
1. Models – the personalization dilemma
When using models, brands couldn’t tell exactly which audience they were addressing. It was a marketers’ and model agent’s best guess which model fits which brand. However, a model does not have a transparent target-group. They are just faces without any open address books or lead list.
Social influencers are their own agents. Their content markets their personality, their personality defines their content, their reach expresses their quality. They have got fans, followers, and friends that everybody (not only when following them) can see. A clear defined and dynamic target-group that is commited to them and engages with them on a regular basis. What they say gets read. What they state is trusted. In fact, their consumer opinion becomes one of the most trusted sources that people believe in – more than traditional ads of any kind.
Just imagine the influence on purchase intent, when an influencer is posting online to a large audience of friends and fans. Social influencers are perceived of their active and growing audiences as „more real“ than models, somehow even as „friends“.
But also the traditional model business is affected by the upcoming influencer trend: Previously interchangeable and relatively anonymous faces are now increasingly becoming personal brands thanks to their personalized Instagram and Snapchat channels and/or (mostly fashion- and beauty related) blogposts. Consequently, numerous models with significant reach are also acting as influencers to their audiences.
2. Testimonials – the authenticity dilemma
Testimonials need to match brand authenticity and follow the brand message in order to become valuable for marketers. Serious investment in dollars does not allow a testimonial’s mistake. Contracts are long-term and include testimonial involvement not only in all brand campaigns but also in personal PR and marketing engagement during the contracting period.
Money counts for testimonials – as much as monetary rewards do for online influencers. This is definitely true for the fashion and beauty industry, states the „Fashion & Beauty Monitor“ report in partnership with Econsultancy named „The Rise of Influencers„. However, three out of five surveyed influencers believe that the „relevance of brand in relation to own area of expertise „is essential when collaborating with marketers. Influencers are very well aware of their personality as brand that has to be secured and consequently, they do not sell everything just because they are asked to. Of course, this in return means a certain loss of control for marketers when working with powerful influencers. Just to state an example, years ago, I offered MINI a cool opportunity to collaborate with me. I fear the idea never reached the BMW four-cylinder tower – perhaps for fear of losing brand control?
Think about it: How authentic can testimonials be that are selected by brands as of their popularity in sports, fashion and lifestyle? Testimonials sell their media value. On the contrary, engagement with influencers can only work when brands do not act too commercial with them and meet their personal authenticity. Social influencers are personal brands; authentic brands that companies can collaborate with.
3. Publishers – the relevance dilemma
When content from influencers gets more attention (and is trusted more) than content from advertising, relevance becomes a critical tipping point. For years, marketers and PR experts were convinced that „serious“ traditional publishers are more relevant to readers than bloggers or any other form of social media active people. Thus, they invested serious dollars in brand building activities with the publishing industry. Today, these very media houses are approaching influencers to increase their declining media value.
A recent study by Collective Bias shows that content from influencers is viewed for more than 2 minutes (which is 7 times longer than the digital display ad average with a view time of just 19.2 seconds). Plus the relevance of someone’s personal opinion -whether rating, recommendation or review- has become of high value for consumers. Now if content from an influencer is relevant and perceived as being „authentic“ , publishing is facing serious competition in the future.
However, relevance needs to meet relevance both ways. Just putting brand messages into the mouth of online influencers won’t accelerate a brand’s value. In order to become relevant to an influencer and his or her audience, a brand needs to be „love-brand“ in a social influencer’s mind. If not, the influencer will be perceived (and probably also act) like a traditional publishing product without a media-kit.
Solving the dilemma – budget and advertising strategy
The world of testimonials, models and publishing is changing with the rise of influencers.
More and more companies and brands start working with social influencers. I personally doubt that they will completely replace models, testimonials and publishing houses, but the future will tell. However, the world of recommendations will be redefined by a new species.
According to a recent #BrandofMe study, brands invested 1 Bio. USD in 2015 in influencer programs on Instagram only. Influencers earn between 500 and 10.000 USD per Instagram photo or Youtube video – obviously depending on their media reach. Which means that some influencers get paid as much as some publishers for their ad space. A lot of budget that moves away from traditional brand building worlds.
The question is what values more to brands in terms of business impact: tradition or progression. But that question can only be answered when brands understand the power that online influencers can have on and in the sharing economy.
Gambling is a competitive industry just like any other and as with other industries advertising campaigns can be the key to a site’s success. There are many different incentives used by those in this sector to entice in new players and make themselves stand out.
One of the most prolific deals that gambling sites extend to their public is a bonus, whether it’s totally free or comes with a deposit. These work particularly well as it is seen by many as an equivalent to free money to use however they please and works as an excellent incentive.
Another way that sites can get players in the door is by creating a theme that’s on trend. This could be anything from a movie to a character and online casino sites that will be opened in 2016 or those that already exist are using this to its full advantage. This tactic taps into an existing fan base and combines recreational gaming with a concept that players already know they enjoy. Branded slot games are a growing trend because of this, as players see a movie that they enjoy reincarnated and can’t wait to take it for a spin. This also helps the site seem more personable and friendly, especially if they use a mascot.
Being social with players gives another boost to the ranks of a casino. As we all know social media is an excellent way for brands to reach out and be seen by a wider audience. The use of incentives by online casinos also helps when using Facebook, Twitter and Instagram as they can boost posts that offer the best deals.
Television advertisement is a medium that never grows old and many gambling sites now rely on creating an eye-catching advert. This can be a little trickier than advertising online however as there are governing bodies that must review these adverts.
The need to drive traffic to a site is felt by every business on the internet and these are just a few ways that gambling sites manage this flow. They still rely on basic advertising principles but they are tailored to the market.
A recent study 2015 Content Marketing Survey by content marketing agency Castleford states that the amount of marketers committed to content marketing is increasing. According to their results 65% (compared to 48% one year ago) of marketers want to boost their content marketing next financial year. Their plans is to invest more in time and resources.
Even more, 97% of participants of the survey said they will increase or retain their current level of investment. And the respondents also face the support of their C-level executives. Of the responding marketers 76% replied their C-level executives viewed content marketing „quite positively“ or „very positively“.
Obviously, there are also some challenges involved in content marketing creation wit time (45%) and budget (29%) being the biggest problem. Just, 3% that mentioned their C-level buy-in is their biggest challenge to content marketing will be probably persuaded over time, we think.
In terms of content marketing tactics the study shows that social media (81%) is still the favorite online marketing tactics in this field. However, the biggest growth opportunity shows video marketing and paid promotion of content for the next year. 61% are already using video marketing, (increase of 13% compared to last year). This is probably also driven by the main players Facebook and Google.
The variety of content marketing is also growing though. Almost every second marketer said that they use five or more different online marketing channels (45%).
Although Castleford director Rob Cleeve is confident with the development of content marketing, he also makes clear that marketers need to deliver results with it as well: „In my experience, content marketing is claiming an increasingly large share of overall marketing budgets, which is going to mean more pressure to show how it’s benefiting the bottom line.“
Content marketing definitely has changed the advertising industry drastically. However, the main challenges involved are the appropriate use of data with content to drive the right story in the right context to the right user at the right time. Here we see massive problems for many marketers still in our work with customers. Post-it recently explained it nicely in a video that leverages their banner and ask many question in terms of how retargeting actually kills good content marketing in terms in the example of banner ads.
The infographic of the study carries all relevant results of the Castleford study.
Last year’s CNBC study examined that C-level execs were more mobile than their senior counterparts in middle management. This year’s CNBC’s Mobile Elite survey -based on more than 600 online interviews across Europe, Asia and North America – shows that the usage and impact of mobile devices amongst business executives is higher than ever. Six in ten executives admitted they are still busy checking their mobile devices when its weekend time and the stock-market is closed.
Managers are even more busy consuming news during the mornings. For those vendors seeking to address the European business decision maker the weekday evening is said to be the right time to get in touch, according to the study. Obviously, many managers have more time during their weekend leisures to digest articles and information. Almost every second executive (48%) reads ‚in-depth articles‘ and 38% has a close look at business profiles.
In that field, LinkedIn has achieved the number one position in Europe as a ‚useful business and recruitment tool‘ (59%) with the highest scores for the ‚respected brand‘ (64%). However, Facebook is also under the top-performers as a ‚useful marketing tool‘ among Europe’s Business Elite. In Europe Twitter scores highest European executives for ‚use for both work & leisure‘ (55%) increasing from 32% in 2013.
TV and tablets are moving more and more together in terms of business impact and parallel screen usage for decision-makers: 80% of US executives stated they were watching TV while using their tablet. Europe is with 71% and Asia with 70% behind the US results. Still, 56% of global executives use their mobile device as a direct result of watching TV.
Their predominant reaction after watching TV content is…
– Web browsing for products or services (69%)
– Purchasing products, stocks or shares (55%)
– Responding to advertising (42%).
„An ongoing trend where work life and private life is bleeding into one another“, thinks Professor of Organisational Behaviour, Cass Business School London, Andre Spencer.
Not surprisingly, business executives are massively using their mobiles and second screens. The more business turns international the more „global business environments work on a 24/7 basis“, thinks Spencer. Staying in touch is possible and needs to be done the more people are engaged in being on the road. The work-life balance gets challenged when organizations are increasingly expecting their top executives to be online and working.
Social media marketing has become more and more important for retail marketers in the U.S. this year compared to 2013. This states the latest reports by Extole which was based on the survey response of 302 people responsible for marketing and technology at U.S. retail companies. However, mobile marketing and email are still top priorities as well for those marketers across various verticals, company sizes and geographies.
Although social media marketing was the leading marketing spend compared to last year with 41%, mobile advertising (32%) and email marketing (31%) were catching up as well. Whereas thee marketing spends were on the sweetspot for budget spends, topics like display advertising (28%), content marketing (28%), and paid search (24%) got less marketing spends this year.
The report also made clear that retail marketers use social media and email two most (85%). Not surprisingly as social media was mentioned as the most effective tactic for acquiring customers. 50% of the retail marketers have picked it in the top three results. Nevertheless, if retail marketers want to convert retail customers, email marketing is still seen as the most effective marketing tool.
If we compare this report to another much broader study by Capgemini „Digital Shopper Relevancy Report“ that asked 18.000 consumers around the globe, marketers might be putting too much emphasize on social media marketing. Marketers might have a closer look at the not „socially-engaged shopper“ categories and then decide in which markets to invest in social media marketing, and which stay with a broader holistic digital marketing approach.
What is your experience on how to best address your customers in the retail or technology space?
In a normal world, when people get the CLIO award, they thank the whole world, their parents and sometimes God for achieving the honorary trophy. Not so Jerry Seinfeld in New York during the Advertising Week. Although the award is seen as the „world’s most recognized international awards competition for advertising, design, digital and communications,“ Seinfeld plays the honor down for having been the longtime spokesman for American Express.
„I think spending your life trying to dupe innocent people out of hard-won earnings to buy useless, low-quality, misrepresented items and services is an excellent use of your energy.“
What an honest statement. What a harsh reality. What a burst of laughter. Don’t bite the hand that’s feeding you, someone like his clients might have said. However, he just let’s it all out and probably makes the whole celebration audience think for the first time in their lives.
Having moderated the dmexco conference some weeks ago, I have to admit that some people also asked, if I hadn’t been too honest when I mentioned that most of the digital advertising companies can be happy that venture capital and private investors exist, as otherwise 80% of the digital parties today would not happen.
Sometime, it is just good to keep the spirit of self-reflecting sarcasm up to drive the future business growth. So, have fun watching Jerry Seinfeld making almost everybody in the room laugh…
Some research by the guys at Convertro gives valuable insights to marketers in terms of paid social media. Compared to other platforms, paid tweets are more successful than organic tweets. The study shows that promoted tweets converted better than twice to organic tweets. However, YouTube is best in introducing new products and supporting consumers purchase decisions.
The report analyzed some 500 million clicks and 15 million conversions during the first quarter of 2014. It tracked the performance of social purchase interactions via the Convertro’s attribution technology amongst their user base. The results show that promoted tweets converted at 3.9%. The unpaid tweets received only a 1.5% figure which makes a difference of 160% that paid tweets generate.
The variance of results can not be seen on Facebook though were paid status updates got achieved 3.1% versus unpaid status updates of 3.0%. Even worse were the figures on Pinterest were paid posts converted with only 0.2% compared to moneyless posts which received 1.1%. So, Pinterest probably needs to rethink their advertising model when unpaid posts (over 80% more successful) do more for marketers than paid posts.
If it wasn’t Twitter, the questions for paid social media would probably even be higher. However, if we look at the overall figure, it is clear that paid posts increase conversion rates by almost 25% – at least according to the stats by Convertro. Maybe you have made your own tests and advertising campaigns with paid social media. If so, maybe let us know if your figures show similar results.
Compared to some previous study, this years CMO Council’s „State of Marketing“ (sponsored by NetBase and Infor) shows that confidence to be a trusted source for the C-level is back with marketers. The online study that asked 525 global marketers in the first quarter 2014 shows that 69% of senior marketers see themselves as a trusted, strategic member of the C-suite and/or are increasing their credibility with the main business decision makers inside their companies. Furthermore, 81% of senior marketers responded that they’re confident to meet management expectations and goals for top-line revenue growth and market share in the next 12 months.
„The level of confidence and optimism is very high. We are seeing the CMO role being elevated to a much larger degree.“ Donovan Neale-May, Executive Director, CMO Council
From a budget perspective, the main areas of marketing spending growth for this year will be social advertising (71%), online video (71%), social engagement campaigns (69%), retargeting (67%) and search engine marketing (66%). However, mobile will go down in the attention of marketing spendings this year. Only 62% said they plan to increases and just 25% project increases of over 5% for 2014. 45% said they expect no change for mobile banners. The report makes no commments on reasons for this stagnating mobile budget growth. In general, 54% of marketers plan to increase their marketing budgets over the next 12 months, 27% will keep budgets stable. The most funding will go into new products and program launches (54%), corporate branding and identity building (53%), lead generation and qualification (50%), and customer retention and monetization (44%).
When asked to identify where marketers will allocate marketing budget across
From an operational and process point of view 12% of the responding marketers said they will invest in product marketing, 12% said in strategy and branding, almost 7% in marketing and planning, 7% in sales and lead management, and 5% in market research, among other areas. It seems that programmatic buying has still not reached the marketing department. Only 1% sees programmatic advertising technology systems an interesting topic to invest in. Maybe they just do not have the right arguments for their C-Suite on programmatic yet.
The senior management expects from their CMOs over the next 12 months to drive top-line growth (56%), grow or retain market share (52%), better define the brand and value proposition (44%), and further customer insights and analytics (37%). As the leading areas of responsibility the marketers see for themselves strategic planning and forecasting (74%), branding (71%), digital (68%), budgeting and mix modeling (68%) and market research (67%). from a C-level perspective the marketers state that their main tasks from the business leaders are driving top-line growth (56%); growing or retaining market share (52%); better defining the brand and value proposition (44%); and furthering customer insights and analytics (37%).
The challenge for marketers as of the cloud technology evolution is to connect with other departments inside the company. Interesting to see from the report to which people marketers are reaching out these days for partnerships. The marketers responded that the CFO (58%), CIO (53%) and chief sales officer (51%) are their main three touchpoints inside the organization to form partnerships with.
The report also states that 55% of marketers want to hire in 2014. Their main focus of reecruiting people or getting knowledge will be on customer analytics (40%), social media (36%) and content development (27%). Interestingly enough, a trend that we also experience with our clients is that B2B marketers (60%) are very active finding new staff. Their main interest is in people on topics like customer analytics (33%), product marketing support (33%), content development (32%) and social media (32%).
The team at We Are Social have created an interesting presentation on „What Makes A Great Brand“. However, I can already hear some of you social geeks saying, moaning and arguing what is missing in the slides and what you could better, maybe start reading and thinking about it first, and then try to find some more brands that have changed the way customer perceive brands today.
The slideshare presentation comes from a a project done in cooperation between We Are Social and The World Federation of Advertisers on Project Reconnect. This initiative was created to understand brands with a deeper meaning by listening to what people really want from brands and advertising. The idea behind it was to align marketers practice and customer expectations. Viewers get to know insights made while talking with marketers about inspiring marketing trends and approaches.