|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: 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.
|Chart of the week: What prompts people to turn off their ad-blockers?
||At first glance, tough love seems to be the way forward for online media to get users to turn off their ad-blockers.
Fifty-eight per cent of respondents in a Reuters Institute for the Study of Journalism (RISJ) poll said that they turned off their ad-blocker, at least temporarily, if there was no other way to view the website or content. But explaining to users that the ad money is needed to fund the website can get publishers places too. Twenty-six per cent of users said they switched off the blocker when notified the website depended on the ad funds.
The good news is that there are ways to get users to comply with the rules of indirect funding. However, this doesn't mean that users will start loving ads because they were in some way coerced (or kindly asked) to turn off their ad-blockers. Then again, 43 per cent of respondents said they switched off their blockers for particular news sites, meaning that news media could profit from investing in a relationship with users. It seems, some users surf with an ad-shield by default, but are willing to let down their guard if the targeted website is trusted.
|Chart of the week: Feeling tracked and the counter-measures against ads
||The internet has opened up untold benefits for marketers and the online advertising industry. The data trail provided by possible consumers makes targeting specific audiences easy. This way personalised advertising can help the industry maximize the return on ad spend. However, the consumer doesn't always feel comfortable with being followed around the web.
According to the "Statista Survey Advertising & Privacy 2017" (https://www.statista.com/study/49088/personalized-advertising/), 86 per cent of respondents often or occasionally realise that their online behaviour is being tracked and used for ads. While 37 per cent do not take any counter-measures, the remaining 63 per cent take action, such as using an incognito window in their browser, to shake off the digital tail. Albeit, only 14 per cent do this always.
Contrasting the findings of other studies there are people out there who are rather spooked out by personalised ads, or knowing that they're being followed. Digital media, marketing their web space for personalised ads, need to at least acknowledge that some of their audience is aware and wary of being followed. And, the customer cannot be coerced to be turned on by cookies.
|Chart of the week: Mobile first for the news industry
||Smartphones are the main motor for growth in web traffic across all industries. Overall, there has been a 68 per cent increase in traffic from smartphones in the United States since 2015. Data compiled by Adobe Analytics (https://www.slideshare.net/adobe/adobe-mobile-trends-refresh-q2-2017?ref=http://www.cmo.com/adobe-digital-insights/articles/2017/9/8/media-and-entertainment-study-on-consumer-behavior-adi-.html) also holds a clear message for all publishers involved in distributing news: mobile first all the way!
Although this isn't a radically new insight, the pace at which this transformation seems to be taking place still is astounding. For large US companies in the news segment Adobe has measured a 52 per cent increase in smartphone visits year-over-year for Q2 2017. National news also shows the biggest growth for traffic from tablets.
Media and entertainment shows below than average growth, with an increase of eight per cent for mobiles. This is also due to the fact that this sector already stands at an overall 58 per cent mobile share for Q2 2017, the highest share for all industries. Adobe tracked more than 150 billion visits to or launches of 400 large company sites and apps since January 2015.