|Chart of the week: Are you prepping for GDPR?
||Anybody doing business in the digital realm should be able to tell you what GDPR is. Spelt out, it reads General Data Protection Regulation and constitutes a major EU data protection law update, coming into effect on May 25, 2018.
It's purpose is to “enhance the protection of the personal data of EU citizens and increase the obligations on organisations who collect or process personal data”. Meaning, this legislation does not just apply to companies based in the EU, but to all companies doing business with EU customers. It also applies to companies who aren’t selling goods or services but monitor user behaviour in the EU.
All the more important that business executives make sure their companies stay ahead of the (legal) game and make their business GDPR-proof ASAP. Marketing tool provider Hubspot asked 363 C-level executives in UK, Ireland, Germany, Austria and Switzerland what kind of activities their companies were undertaking to prepare for GDPR coming into force. Most of them, 44 per cent, were updating their contracts and data protection policies. However, 22 per cent ticked the ‘none of the above’ box, which of course could mean some companies are risking a rude awakening after GDPR day, as the EU has threatened heavy fines for those who don’t comply.
|Chart of the week: Ecommerce is up and poised for further growth
||Worldwide, ecommerce growth is primarily being driven by consumers using their mobile devices, phones and tablets, to acquire goods and services. According to eMarketer estimates, retail ecommerce sales reached US$2.3 trillion in 2017, a 23.2 per cent increase over the previous year.
The mobile share stood at 58.9 per cent, or $1.4 trillion. In 2021, mobile ecommerce could rake in some $3.5 trillion and then make up almost three quarters (72.9 per cent) of ecommerce sales.
“A majority of first-time digital buyers are now completing transactions via mobile devices, specifically smartphones,” eMarketer elaborates. As this mobile savvy audience matures, “their purchase frequency and amount spent online will only increase.” The data covers products or services purchased via mobile devices, regardless of the method of payment or fulfilment. It excludes travel and event tickets. Publishers too, will have to keep concentrating on mobile first strategies, as this is where the consumers are mingling and spending.
|Chart of the week: users prefer ads in legacy media compared to online
||Worldwide, people seem to be most receptive to legacy media advertising channels, such as magazines, outdoor, TV and newspapers. Indeed, all legacy formats, apart from radio, make it above the 50 percent positive-attitude line.
In contrast, all online formats, such as display, online search and video are less popular with consumers. In fact, phone and tablet ads are least popular, according to research by Kantar Millward Brown, who surveyed 14,500 consumers in 45 countries worldwide in August to September 2017.
One reason for this might be that the same study finds, many people are perceiving online advertising as more intrusive. Online ad targeting methods could be one possible explanation, another could be consumer conservatism, as in “you-like-what-you-know”.
|Chart of the week: Users are spending less time on single pages
||The average session length on publishers’ pages dropped below two minutes over the course of last year, according to Taboola data published by eMarketer.
Time spent with an individual page was 1.90 minutes in the fourth quarter of 2017, down from 2.09 minutes in the first quarter of the year.
The likely reason for this development is due to users consuming more content directly on platforms. This data is yet another indicator, that platforms are one of the biggest challenges faced by publishers.
|Chart of the week: The potential of social media advertising
||Social media’s share of the worldwide advertising market is growing. It was worth some US $43.78 billion in 2017 and accounted for some 18 per cent of the total digital advertising market.
The US market is by far the biggest in the world, having generated some $21 billion. That's a 22 per cent share of the total US digital advertising market.
The European social media advertising market was worth about $8 billion in 2017, not even half the size of the US market. In China, 11 per cent of the digital advertising revenue comes from social media. And, as our chart by Statista shows, around the world, mobile is much more important than desktop targeted social media advertising.
While all markets are poised for growth, it's China where most growth is likely to occur, almost doubling its revenue in the years to come and catching up with where America stands today. These developments of course mean that traditional media publishers’ fight for their share of digital ad spend is ongoing, as social media is gaining attractiveness with advertisers.
|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: 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.
|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.