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Chart of the week: What are the risks to success for publishers in 2018? Social media, and above all Facebook, took a lot of heat for its perceived role in disseminating rumour and false news, most prominently during the US election campaign in 2016. Now, the firm has announced that it will give publishers less space for promoting their content (organically) on its platform. This is of course is bad news for publishers. This sort of decision is probably one of the reasons why publishers rank platforms to be one of the greatest threats to their business success in 2018. Twenty-one per cent of senior media publishers interviewed by the Reuters Institute for the Study of Journalism (RISJ) think platforms are a real risk to business. However, apart from annoying publishers, Facebooks’ decision has far greater consequences: While the company argues that it wants to re-priorities updates from friends, family member and other contacts, in reality, it won’t shut down news about other news-worthy real world events being disseminated. It’s only that the voice of those who filter and verify news professionally, the so-called gatekeepers in the news media, will be tuned down, possibly making the spread of false news and rumours even more prevalent. It’s almost as if Facebook is shying away from its real responsibilities.
Chart of the week: Playable ads poised for growth Getting any app promoted and downloaded by users is an increasingly difficult game. That's why interactive or playable ads have grabbed the attention and imagination of many app developers. According to a survey by AdColony, 46 per cent of leading app developers they asked (of which many are in the gaming industry) said this format has their full attention in the year ahead. This is double the share playable ads got last year (25 per cent). Playable ads are a form of so-called app-install ads, which have become an increasingly important way of promoting apps. They are mini games in banner format which can be played by users and give them the opportunity to "test drive" a mobile game before downloading the proper app. Letting users have a taste before committing to the app ensures that the churn rate will stay low and more users will stick with it for longer. Also, all moving pic formats are held in high esteem by the app marketers - from full screen video (26 per cent) to social video (13 per cent) and in-feed video (six per cent).
Chart of the week: A quarter of global ad spend goes to Google and Facebook Global ad spend across all formats and platforms is expected to rise to US$98.3 billion in 2017. That's according to research company WARC's report "Global Ad Trends". Only this year, has digital ad spend overtaken TV as the biggest recipient of ad dollars. (https://www.fipp.com/news/insightnews/chart-of-the-week-digital-finally-killed-tv) However, not all digital publishers are having a ball. A closer look at the figures explains why the champagne corks aren't popping all over the digital publishing world. Most of the digital ad spend worldwide (61 per cent) is going to Google (44 per cent) and Facebook (18 per cent). Even if you count in ad revenue across all media, the digital duopoly still snaps up a quarter of all ad dollars spent this year. WARC's ad spend database covers 96 markets worldwide. https://www.warc.com/newsandopinion/news/mobile_is_the_worlds_secondlargest_ad_medium/39673
Chart of the week: Digital (finally) killed the TV star Television reigned supreme over the advertising market. It has been a long time coming, but finally, this year, digital has dethroned TV, according to data collected by business intelligence agency Magna Global. (https://www.recode.net/2017/12/4/16733460/2017-digital-ad-spend-advertising-beat-tv ) In 2017, around 209 billion dollars were invested in to digital ad spend, while TV's share stood at 179 billion dollar in 2017. So, there should be the festive feeling in digital publishing, now awash in ad dollars. What stresses many is the distribution of those ad dollars. Indeed, Google and Facebook are snapping up a very big chunk. According to recent data provided by eMarketer (https://www.emarketer.com/Article/Google-Facebook-Tighten-Grip-on-US-Digital-Ad-Market/1016494), the mighty duopoly "is now expected to rake in a combined 63.1 percent of US digital ad investment in 2017." The others are left to squabble over the rest.
Chart of the week: Where will the marketing money be spent in 2018? Creating content is the top goal for marketing pros around the world. According to figures compiled by communications and marketing agency Cognito, 61 per cent of the 165 marketing leaders they interviewed for a survey named creating content as the area where more of their marketing budget will be invested in 2018. This makes sense, as in the previous report only 18 per cent of respondents were happy with the content they could market. Investor relations (71 per cent) and public affairs (69 per cent) featured in the two top positions of areas where investment will remain the same. The top loser according to the survey will be traditional advertising, with 40 per cent of marketing leaders wanting to invest less. These developments could have negative implications for traditional media outlets, as the volume of content published or disseminated by company marketers could more strongly compete with traditional publishing content. Diverting dollars from traditional advertising could also negatively affect heritage media ad revenue.
Chart of the week: Where ad spend is growing most Ad spend can be taken as an indicator for wider economic and political developments, and more narrowly speaking it's an indicator for the media as to what it can expect in terms of ad revenue. Zenith expects worldwide ad expenditure to grow by 4.2 per cent in 2017, which would translate in to 559 billion US dollars by the end of the year. Most growth since 2016 was recorded in Eastern Europe & Central Asia, where spend grew by close to 10 per cent, still recovering from a sustained decline since 2014. North America outperformed Western and Central Europe. Zenith argues "political and economic uncertainty in the UK drags down growth." The Middle East and North Africa was the only region where ad spend declined, coming down by 18.6 per cent, due to deflating oil prices and political turmoil. Because markets across geographical blocs have very diverse markets, Zenith has for example broken down Asia into sub-blocs: Fast-track Asia, countries with rapid adoption of Western technology and practices (such as China), and Advanced Asia (Australia, New Zealand, Hong Kong, Singapore and South Korea.) Japan is its own category.
Meredith to acquire Time Inc. Creates premier media and marketing company serving 200 million American consumers
Chart of the week: Why do consumers break up with brands? The customer is king and as such can be hard on any brand that doesn't fulfill his or her expectations to the fullest. According to a new report by SAP Hybris (https://www.hybris.com/medias/sys_master/root/h5d/hca/8824150687774/consumer-insight-survey-global-17-EN.pdf), customers worldwide have several reasons to turn their backs on brands. The top no go for brands is using data consumers confided in them without their knowledge or permission. Eighty per cent of respondents worldwide said this was the number one reason to divorce. "Now that brands are able to collect data about consumers, how they use that data becomes critical," the report concludes. An unresponsive customer service is the second most acute reason customers terminate their relations with a brand (71 per cent). There is other brand behaviour that might not lead to consumers shunning the brand altogether, but which still is seen as annoying. The top two spots have to do with a marketing and sales overkill: 60 and 50 per cent of consumers respectively are either bothered by too many direct marketing calls or too frequent sales emails.
Chart of the week: Media side of ad campaigns grows more important Running an ad campaign is a pretty intricate undertaking. Many variables contribute to either success or failure. In general, you can discern three broad parts you need to consider. Firstly, you have the actual creative good, the advertisement itself. Secondly, you have the media planning aspect, as you need to decide how, where and when to get the ad out. Last but not least, as you don't start at zero, but are most likely working with an established brand, you have preexisting specifics (e.g. price or brand penetration). According to a recent study by Nielsen, there is a shift taking place as to which aspect is deemed how important in contributing to a lift in sales. While the creative aspect of the campaign still is the most important factor (49 per cent), ten years ago this side of the campaign was thought to contribute up to 65 per cent. Nielsen argues due to breakthroughs in data and technology "media is playing a much larger role than before." 500 packaged goods campaigns were considered for the study. https://www.ncsolutions.com/wp-content/uploads/2017/09/NCS_Five-Keys-to-Advertising-Effectiveness.pdf
Chart of the week: Facebook is still the fastest growing social media network It may not be as hip as Snapchat or Instagram, but Facebook is still a must-have channel for publishers trying to reach a large audience. The world’s largest social network just keeps on growing and now has more than 2.07 billion users around the world. Facebook may seem like the slow behemoth that can no longer keep up with the explosive growth of younger platforms, but in fact no other social media platform added more users than Facebook over the past two years. As the following chart by Statista shows, Facebook added 527 million monthly active users in the past two years – that is considerably more than Twitter’s entire user base (330 million). And it’s not just sheer size that speaks for Facebook. According to a survey conducted by the Audience Project in the United States, Facebook is also the most engaging social media platform. Fifty-three per cent of the respondents said that they open the Facebook app at least several times a day. Snapchat only reaches 34 per cent in that regard.
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