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Babelfish Articles May-July 2014 20-8-14
Babelfish Articles May-July 2014 20-8-14
Babelfish Articles May-July 2014 20-8-14
Babelfish Articles May-July 2014 20-8-14
Babelfish Articles May-July 2014 20-8-14
Babelfish Articles May-July 2014 20-8-14
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Babelfish Articles May-July 2014 20-8-14

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Babelfish Articles - Articles that have passed my desktop over the last 3 1/2 months that I found of intereest. Sorry - haven´t had time to do the normal highlighting of relevant test - but scan index …

Babelfish Articles - Articles that have passed my desktop over the last 3 1/2 months that I found of intereest. Sorry - haven´t had time to do the normal highlighting of relevant test - but scan index to see of anything grabs your interest. The document is in word - so download if you want to save / for better navigation.

Cheers, Brian

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  • 1. Babelfish Articles May 2014 – July 2014 20-7-14 Page 1 Articles May-July 2014 Brian Crotty Babelfish.Brazil@gmail.com
  • 2. Babelfish Articles May 2014 – July 2014 20-7-14 Page 2 Summary A Peek Into the Future: Where Programmatic TV is Headed .................... 6 Mobile payments are inevitable ............................................. 7 Xbox Strikes Out At A Different Game ....................................... 8 Twitter testa ‘trending topics’ para TV .................................... 9 5 Things Your CEO Should Know About gTLDs ................................. 10 'The Internet Of Things' Will Change Virtually Everything About How Large Companies Operate ......................................................... 12 Attribution 'a work in progress' .......................................... 14 Dominant 2014 Trends among Brazilian Internet Users ....................... 15 8 Keys to Powerful Mobile Campaigns in Brazil ............................. 16 Vibrant Media Finds that Consumers Trust in Branded Content on Par with Editorial ................................................................. 17 The Future of Across-Screen Advertising, Part I -- Bill Harvey ............ 20 How Successful People Stay Calm ........................................... 22 Beacons: Closing the Gap on Proximity Marketing ........................... 26 Can you finally forget your password? Even your heartbeat could hold the key .......................................................................... 27 Tourism New Zealand hires drones to make ‘dronies’ the new ‘selfies’ this ski season .................................................................... 29 5 Ways to Move the Needle: What I Learned During the World Cup ............ 32 Retention vs. Acquisition - and the Winner Is… ............................ 35 Connecting the Dots to Deliver Context .................................... 38 Why Marketers Love Big Data & Hadoop ...................................... 39 The futuristic sci-fi medical technology being used today ................. 41 Best Practices: How to Woo Mobile Daters .................................. 45 The Influencer Economy .................................................... 47 In Brazil, What Happens While Car Shopping Ends up on Social .............. 48 Programmatic + Immersive TV Experiences ................................... 49 Innovation Is Marketing’s Job, Too ........................................ 50 It’s Time for Boards to Cross the Digital Divide .......................... 51 Why Offline Data Is Key To Online Data Segmentation ....................... 53 Is 'Public Vs. Private Exchange' The Wrong Question? ...................... 54 In-Car Wi-Fi Will Create Opportunities for Advertisers Down the Road ...... 55 Growth Trends & The Rising Influence Of Screen Agnosticism ................ 57 Does Cheap Online Video Trump Text? ....................................... 59 APAC leads mobile growth and innovation ................................... 60 Don't Pack Up the Social War Room Just Yet ................................ 61 The Future Lies in Targeting Based on What We're About To Do, Not What We've Just Done ................................................................. 62 The Internet of Things: When Digital and Physical Worlds Collide - Renee Jordan .................................................................... 63 How the Internet of Things and Google Nest are Changing Marketing (Members- Only Report) .............................................................. 65 Direct Mobile Commerce: Bypassing the Retailer ............................ 68
  • 3. The 10 futuristic gadgets that will change your world ..................... 69 Great Customer Experiences Ready to Apply ................................. 79 Moneyball 2.0 ............................................................. 81 The Importance of Encouraging Children to Shoot for the Moon .............. 83 Don't Give Away Your Magic For Free ....................................... 84 Branded Tools A Factor In Creating Loyalty ................................ 87 Digital Ad Fraud: Sizing up the Challenge ................................. 88 Mobile Search: Key Considerations for Marketers ........................... 89 Overcoming RTB’s Transparency Issues ...................................... 91 Online TV Versus TV Online: There's A Big Diffference ..................... 92 What’s Next for Private Exchanges? ........................................ 94 Consumers value the shopping experience ................................... 96 Retailers embrace PowaTag technology ...................................... 96 Marketers look to 'service design' ........................................ 97 Apple set to connect iPhone to your car ................................... 98 Don't Just Tell A Story; Be A Narrative Architect ........................ 100 Marketing and Procurement go together like... ............................ 102 In Programmatic Integration, The Buyers Are In Front -- Again ............ 103 The Fit of Apps & Websites in Mobile Shopping ............................ 104 Pepsi's Mobile Strategy: It's the Content, Stupid ........................ 106 The Secret to Successful Storytelling Lies in the Golden Circle .......... 107 When TV Is Obsolete, TV Shows Will Enter Their Real Golden Era ........... 108 The Internet of evrtything: 2014 ......................................... 111 Acxiom Acquires LiveRamp, Wants To Build 'Neutral' Audience Grid Anyone Can Plug Into ................................................................ 160 Programmatic Advertising To Gobble Up Even More Ad Budgets - Report ...... 161 IComprehensive Survey Reveals Majority of Marketers to Spend At Least 40 Percent of Digital Media Budgets Programmatically by 2015 ................ 163 Ibope aumenta a amostra e só a Globo perde audiência ..................... 164 ABC Edges Toward Programmatic in Test of Data-Driven Buying for Digital Video Won't Involve Real-Time Bidding or Open Exchange ......................... 165 Best Practices for Branded Vine Videos ................................... 166 Radian6 and Buddy Media United as Social Studio .......................... 168 Análise: pelo crescimento da indústria digital no Brasil, mais educação, por favor .................................................................... 169 Native Advertising Could Feel Right At Home On Smaller Screens ........... 170 TV Ad Dollars Slowly Shifting to Web Video ............................... 171 TV Isn't Dead-- In Fact, It's Everywhere ................................. 173 Mapping Retail: Geo-Location, iBeacon & the Promise of Mobile Shopping ... 174 How to Add a 3-Second Bumper to All of Your YouTube Videos ............... 176 Yahoo and comScore Partner to Expand Global Access to Ad Measurement ..... 177 Facebook Develops New Video Ad Metrics ................................... 179 Does the Future of Online Shopping Lie in Social? ........................ 180 Retailers Look to Merge Offline and Online Shopping Experiences in 2014 .. 181 Babelfish Articles May 2014 – July 2014 20-7-14 Page 3
  • 4. World Sleep Day: 10 interesting sleep-related research findings .......... 182 The difference between agency confidence and arrogance in a pitch ........ 184 A more efficient process for selecting the perfect agency ................ 186 What's Next In Payments® ................................................. 189 With TV Poised To Join Video Universe, Viewer Attention Maxes Out: YouTube Share Now About 2% ....................................................... 190 50% of mobile shoppers open to beamed messages ........................... 192 Payment Innovation Is Not Enough For Retail .............................. 192 How automotive advertising works ......................................... 194 As WhatsApp Hits 500 Million Users, CEO Jan Koum Preaches Focus .......... 198 How to Build a Perfect Content Distribution Strategy ..................... 199 How to Keep Up with Millennials + Their Omni-Channel Shopping Habits ..... 201 Everpurse handles essentials while providing up to 48 extra hours of battery life. .................................................................... 205 Publishers focus on data monetization .................................... 206 Kids of today and tomorrow: A global and regional close-up on the youngest millennials .............................................................. 209 Kids of Today and Tomorrow has identified five key themes. ............... 211 Latin America inside out: past, present and future! ...................... 219 Beyond brand tracking: Coca-Cola and the 2014 World Cup .................. 231 Auto leads mobile optimisation ........................................... 244 Understanding how consumers buy: The four stages of the purchasing "loop" 245 Ford extends its consumer insights ....................................... 249 Ford draws insights from pizzas and smartphones .......................... 250 Mobile users 'open' to sponsored data .................................... 255 Telefonica, Blackstone Launch Axonix, A Mobile Ad Exchange Built On Defunct MobClix Tech ............................................................. 256 How Big Advertisers Are Using Next-Gen Messaging Apps Snapchat, Kik, Tango, Line and WeChat .......................................................... 258 Brands react to 'Digital Darwinism' ...................................... 261 How iBeacon and Similar Technology Will Change Retail .................... 262 Interview conducted by Yory Wurmser on March 3, 2014. .................... 263 Internet Ad Spending Beat Broadcast TV for First Time Last Year .......... 264 "O mobile vai ser o controle remoto da nossa vida" ....................... 266 How Kellogg's embraced digital visibility and drove engagement ........... 268 Customer acquisition is not enough ....................................... 277 ACCENT Marketing Survey: Nearly 90 percent of Consumers Say Personalized Interactions with Brands Drive their Purchase Decisions .................. 278 How Nielsen's OCR Will Impact Digital Video Advertising .................. 279 Marketing cars: Driving digital success .................................. 281 The era of Facebook is an anomaly ........................................ 284 Dealership Media Strategy Is Key ......................................... 291 Delivering a Superior Automotive Customer Experience in Developing Markets 292 Pedal to the Metal: Reinventing the Premium Carmaker ..................... 297 Babelfish Articles May 2014 – July 2014 20-7-14 Page 4
  • 5. The Contribution of the Automobile Industry to Technology and Value Creation ......................................................................... 301 The New Digital Hook in Automotive ....................................... 309 Automaker Launches Global Sales Program .................................. 310 Futurist Morris Miselowski predicts the jobs we’ll be doing in 2050 ...... 311 In 10 Years, Facebook Will Look a Lot Like Comcast Cable ................. 316 Is Measurement Killing Ad Growth? ........................................ 317 Best Video Strategy: TV Replacement Or TV Amplification? ................. 319 The Future Of Television, As Decided By The Supreme Court ................ 320 Babelfish Articles May 2014 – July 2014 20-7-14 Page 5
  • 6. A Peek Into the Future: Where Programmatic TV is Headed Babelfish Articles May 2014 – July 2014 20-7-14 Page 6 Jul 17, 2014 Jason Burke When Terry Kawaja speaks, the ad world listens—and for good reason. His insights lack preconceived notions and biases—assets in a potentially controversial piece like his latest on the Future of TV. Terry speaks of the current conversations happening in silos: Linear TV folks dismissing the relatively smaller digital budgets Digital fellas convinced that their strategies will force the same extinction for TV that radio and newspapers experienced Given the large combined budgets ($70B TV, $7B digital video), where are the peacemakers in the middle, singing, “can’t we all just get along”? As a counter to the disconnected digital video and TV parties that have been battling silently, he also predicts convergence…convergence in marketing spend, measurement and media consumption. The newly converged landscape will also include new categories of players, such as TV supply-side platforms (SSP), cross-channel data vendors, workflow automation providers and more. Standouts in the evolving nature of TV and digital video are: Fragmentation—There is a lot of fragmentation across content and how viewers are consuming media. Fragmentation is driving inventory owners to consider new revenue streams and monetization strategies such as programmatic. Time-shifted content—Another key driver of new monetization. Data-driven decisioning—Data is being utilized to fuel content creation. For example, Netflix committing to two seasons of House of Cards without a pilot because the other factors were so strong. Data-driven decisioning serves to uncover the audience behind media consumption. Navigation—Changing from old-school remote controls to software-based and recommendation-driven content. Will anyone know the difference between “flipping to Fox” vs. “switching the channel to Michelle Phan’s stream”? Unlikely, and some of the large players recognize that the media world as we have known it is short-lived and are responding to this forthcoming shift. Ad budgets will adjust as viewers change their media consumption behaviors. TV media owners must embrace programmatic to tap into new revenue and digital budgets, and to empower their sales teams with an understanding of the audience and value of their media. The convergence of traditional TV with digital video calls for an integrated workflow to bring TV and digital together. Platforms that integrate the workflow and provide the translation between TV and digital will be an essential part of the ecosystem. Workflow for TV is drastically different than digital though. Platforms built for digital can not be retrofit to work directly for TV. Building a platform with a focus on TV from the ground up will provide the translation to digital. Perhaps some convergence will happen through M&A as Terry predicts…perhaps some will be a “build” versus buy, but there will certainly be new innovators that bridge the gap between the currently separate worlds. One scenario Terry suggests is that seven percent of inefficient TV budgets be shifted to digital, doubling the digital video market. A similar case can be made in
  • 7. taking 25 percent of a digital budget and spend it on TV (with matching audience segments to the digital campaign) for positive effects. Terry claims that linear TV is a growth industry, estimated to $83B by 2020. We absolutely agree that TV is not going anywhere. The future will include programmatic ad solutions for TV to protect TV asset inventory, building a platform from the ground up to serve the merged worlds, increased digital spending and opportunities for monetization. In the near future, I imagine Terry’s team will deliver the output of a far easier single “video” LUMAscape featuring the players in this new video world. Mobile payments are inevitable Babelfish Articles May 2014 – July 2014 20-7-14 Page 7 20 August 2014 - Warc PHILADELPHIA, PA: Mobile payments will be as unremarkable within ten years as credit card payments are today, according to two leading academics who warned retailers to heed the technology's increasing popularity among millennials. Responding to the findings of a PwC study that suggested consumers were reluctant to store money in a mobile wallet because of concerns about security and privacy, Wharton marketing professor David Reibstein argued that this was simply another manifestation of people's "paranoia to things that are new". Consumers were no longer worried about credit card companies knowing what they were buying for example. Similarly, restricting liability to $50 in the event of fraud had alleviated security worries. "It's just a matter of people making an adjustment," Reibstein said. "I think 10 years from now, we'll look back at it and say, 'Hasn't this always been here?'" His colleague John Zhang highlighted the take-up of mobile payment technology by millennials, who are using mobile wallets to transfer funds between friends and to store tickets for events. "In fact, you can combine mobile payments with social networks," he said, with apps such as Venmo enabling peer-to-peer transfers – ideal for splitting the check in restaurants, for example. For a demographic that has grown up with social media, this is quite natural behaviour. Bloomberg even remarked on how, among the younger age group, Venmo was on the way to becoming a verb – 'venmo me' – in the same way that people talk of 'googling' or 'tweeting'. While consumers generally have been slow to adopt the mobile wallet – partly because of engrained habits, partly because of the confusion of proprietary technologies available and partly because of security – consulting firm Accenture said that it could "mend the seams of consumers' disjointed omni-channel experiences". And with millennials already embracing the technology, the only choice retailers face is effectively one of timing – when do they step up to the plate and offer the service. As Zhang pointed out: "If you don't [accept mobile payments], you're going to be passé. You're going to lose lots of your [future] customers." Data sourced from Knowledgte@Wharton, Bloomberg, Accenture; additional content by Warc staff
  • 8. Babelfish Articles May 2014 – July 2014 20-7-14 Page 8 Xbox Strikes Out At A Different Game by P.J. Bednarski, I have to give credit to Xbox for something. At its NewFront presentation in the spring, it seemed very much like a content provider. Xbox Entertainment Studio chief Nancy Tellem, a former CBS executive and right hand woman to Les Moonves, was up there on stage promoting a bright future for the entertainment arm of Microsoft’s gaming console. And when her voice got tired, she handed the mic over to Jordan Levin, former CEO of the former WB network and an ace programmer himself. The NewFront event included a comic—Craig Robinson, late of “The Office” –lending more broadcast network-like patina to the event. There was even an opening act, the excellent Lake Street Dive quartet, whose Rachel Price sang their hit, “Bad Self-Portraits.” That turned to be the most real part of the afternoon, and a dandy bit of corporate foreshadowing. That’s because Xbox Entertainment more or less has folded—victim of a pretty bad corporate snapshot. It was axed by Microsoft’s new CEO Satya Nadella, as part of a larger corporate haircut of less-than-usual core units that will cost Microsoft 18,000 jobs in total. With Tellem and Jordan (and even a Steven Spielberg series, “Halo,” in the works), you’d have thought Xbox, with 48 million subscribers (more than Netflix and HBO), was going to be the next greatest, improbable thing: A gaming system that become a major content provider. Nah. Whatever the heck happened, Xbox disappeared somewhere in the digital Bermuda Triangle. It’s almost as if it never existed, dead and presumed superfluous to Xbox the gaming company and to Microsoft, the technology company. You could have seen it coming, says a new opinion piece by The Diffusion Group’s senior advisor Joel Espelien who essayed “A Fear of Commitment” to explain it. To boil it down, Espelien figures that Microsoft realized what while games are crazy popular, it’s best not “confuse the popularity of games in general with the audience for game consoles in particular, which continues to skew strongly towards young males.” He says Xbox had a tough time wooing creatives to go to work for Xbox. Indeed, the only vestiges of the company still intact are producing content that is distinctly game-oriented, including a documentary of the early grand history of Atari. That TDG analysis sounds right on the button, though somehow still, it seems Xbox is missing a chance. It has those millions of subscribers, and they do access other content through their device now. A little push in the content direction might have made sense. Amazon Prime is a pure content provider that had added lots of game opportunities to its service, so, possibly those are not such polar-opposite audiences. The Hollywood Report said last week that, indeed, Warner Bros. might be thinking there’s life in that idea. According to THR, Xbox Entertainment would be a nice match for Warner Bros. which has an $18 million investment in gaming site Machinima. And Machinima happens to operate a top app on the Xbox One platform.
  • 9. It’s also worth noting that in prior lives, both Tellem and Levin worked for Warner Bros.’ units so there is an all-in-the-family feel to this, for what precious little that’s worth in Hollywood. But the Reporter story was mighty tentative, leaving Xbox Entertainment just as it is, for now. And that’s basically, gone. Babelfish Articles May 2014 – July 2014 20-7-14 Page 9 j@mediapost.com Twitter testa ‘trending topics’ para TV Empresa está testando ranking dos programas mais comentados com alguns usuários do aplicativo para iOS 14 de agosto de 2013 15h12 Por Ligia Aguilhar Empresa está testando ranking dos programas mais comentados com alguns usuários do aplicativo para iOS SÃO PAULO – O Twitter parece estar interessado em estreitar suas relações com a indústria televisiva, especialmente depois de alguns estudos mostrarem que o burburinho sobre um programa no site tem impacto nos números da audiência. A empresa está testando com alguns usuários do aplicativo iOS nos Estados Unidos uma espécie de Trending Topics de programas de TV, um ranking que destaca os programas mais comentado do momento. Um banner com a foto, o número de tweets e informações sobre o canal e horário de transmissão de um programa está sendo exibido no alto da página principal da conta de alguns usuários. Usuário postou imagens da novidade na sua conta no Twitter. FOTO: Reprodução A informação foi divulgada pelo usuário Anthony Geranio (@asg) na terça-feira, 13. Ele publicou imagens de como ficou o visual da sua página no Twitter com a novidade.
  • 10. Um porta-voz da empresa disse ao site TechCrunch que o Twitter adota a filosofia de inovar por meio da experimentação, mas não quis comentar diretamente o assunto. A relação do Twitter com as emissoras TV é cada vez mais estreita. Um estudo recente da Nielsen confirmou uma suspeita antiga: a avaliação de um programa e a magnitude do barulho que ele provoca no Twitter estão relacionados. Segundo o estudo, o volume de tweets causou “mudanças significativas na audiência em 29% dos episódios dos programas analisados”. Na mão oposta, em 48% dos casos, maior audiência resultou em mais tweets relacionados. No Brasil, um estudo preliminar do Ibope mostra que a partir de 17 pontos de audiência, cada 5 mil tweets adicionais sobre um programa geram um novo ponto de audiência. 5 Things Your CEO Should Know About gTLDs Babelfish Articles May 2014 – July 2014 20-7-14 Page 10 Jennifer Wolfe | August 13, 2014 As the Internet continues to evolve with the adoption and expansion of gTLDs, chief executives need to be prepared to evolve along with it. Here are the top five things CEOs need to know about the new gTLDs. One of the primary roles of the chief executive (CEO) is to understand business cycles and be able to take strategic risks to achieve future success for the company. Because of limited media coverage, many CEOs are unaware that the Internet is undergoing an unprecedented scaled expansion and that powerhouse technology companies, which have already transformed the way we do business, have made substantial investments in the new gTLDs. Consider these top five things your CEO should know about the new gTLDs. 1. The New gTLDs Are One Part of the Age of Digital Transformation. For the first time in the history of the Internet, we are experiencing numerous converging forces on how consumers navigate not just the Internet, but their entire digital world. Fifteen years ago, the Internet became a mainstream tool for business, school, and life. In 2004, when Facebook was introduced, the social media revolution began. And as smartphones took over old cellphone technology, with the iPhone introduced in 2007, the way we live on the go also changed. Amazon Prime and Zappos have changed the way consumers think about buying online with two-day free shipping and free returns, requiring retailers to invent destination experiences to lure shoppers into the brick-and-mortar store. The number of patents filed on digital-related inventions has skyrocketed in the last 10 years. We are in the midst of a massive digital transformation impacting all industries. Soon, there will be driverless cars, adding a whole new digital component to our lives. For CEOs, this scaled expansion of the Internet is just one piece of digital transformation that will directly impact the strategy they set for the future of the business. Nearly 2,000 new gTLDs are categorizing the Internet and assigning secure authenticity and credibility to brands at the top level. Google applied for 101 top-level domains. Amazon for 76. They will create value in these new digital spaces. As half the world’s brands begin to advertise and promote new and unique digital experiences, then the way consumers think about their online world will start to change. 2. New gTLDs, Like the Original .Com, Will Force Innovation. In the 1990s, some CEOs questioned why the company needed a website or what value the Internet would have to their company, but it forced them to innovate into this new digital age. When the Internet began, there was no Google, eBay, or Facebook. The new gTLDs, much like
  • 11. the wild west of the original .com era, will force companies to innovate new uses for the online experience in the top-level domain environment and spawn new companies. Traditionally, online was chained to a desktop or laptop computer. Chromecast, Roku, Apple TV, and Amazon Fire are now casting that website or online experience onto the flatscreen. The homepage will be unraveled in favor of specific experiences users are seeking and casting up on the big screen. Brands will quickly begin to understand the authenticity, security, and brand power of their own Internet channel and innovate the online experience. As millions of new wide-open digital spaces are created by the new gTLDs, entrepreneurs will respond with new ideas and technologies to leverage the expanding Internet universe. CEOs need to recognize that every company needs digital innovation if it will survive this transformation. Babelfish Articles May 2014 – July 2014 20-7-14 Page 11 3. New gTLDs Create a Trifecta of Digital Intelligence CEOs rely upon their people and data to drive strategic thinking. The convergence of new data available creates digital intelligence essential to make strategic decisions. Consumer shopping data is available within your own digital world. Understanding what, when, and how consumers shop online, including how they respond to algorithm-driven point-of-sale prompts, is critical to spotting key trends. Likewise, how people are searching and navigating the Internet tells you what they think and want and what they want, but can’t find. One of the greatest pieces of data for a brand gTLD will be what people search for in their ecosystem that is not available and how they move from one space to the next. How people behave in social and mobile spaces completes the picture. In social, you know what messaging and who influences their
  • 12. thinking. In mobile, you know where they are and what drives purchase behavior or decision making. This data, along with other indicators like patent trends, can tell you where your competitors, customers, and industry are headed. In the trenches of companies, managers are focused on executing the strategy the CEO sets. But if the CEO doesn’t have digital intelligence, the key to the future of the business may be lost as "off strategy." 4. New gTLDs Will Change How Consumers Search and Navigate the Internet. Fifteen years ago, consumers searched a desktop computer using a mouse and a browser. Now, they search with great specificity on mobile devices or apps and few bother beyond the first page of search results. New gTLDs will initially create more confusion, but as consumers come to recognize certain gTLDs or channels as trusted, they will begin to search within those spaces and Google may begin to change the way it guides users. In prior years, companies would use search engine optimization strategies to generate results to drive consumers to their digital spaces. Today, it’s becoming less possible to "game the system" to get better search results. "If you keep the mental model of 'What is Google trying to do?' – trying to return great search results for users – then that helps you try to align yourself with those goals. If you are aligned with those goals, then we are trying to return the high-quality pages that you are making. If you aren’t aligned with those goals, you are always going to be working in opposition to the algorithms and you’re always going to be working in opposition to regular users and what they want to see," says Matt Cutts of Google. "What will be important, today and moving forward, is embracing the mix, getting the mix right, and repeating that success using these newer tactics. For a business to really achieve success, they have to look beyond the search engine and set their sights firmly on impressing the customer," adds Duane Forrester of Bing. Babelfish Articles May 2014 – July 2014 20-7-14 Page 12 5. New gTLDs Are a Paradigm Shift, But This Has Happened Before Historically, when paradigm shifts begin, those who are negatively impacted by it say it will never work and often work hard to stop or slow the shift. But these shifts are inevitable. Consider the railroads, the industrial revolution, ZIP codes, the highway system, the information age, or social media. The rise and fall of business models and how we navigate our world is inevitable and it’s happening at an accelerated pace. Remember these companies: Kodak, CompUSA, Compaq, Tower Records, Woolworths, EF Hutton, KB Toys, Hostess, and Borders? They are no longer in business. Their CEO missed some indicator in time to make the shift. While gTLDs are just one part of the digital transformation underway, they are a critical piece to the puzzle and worth at least a mention in your next report to the CEO. If you’d like to see a new infographic on gTLDs, click here. 'The Internet Of Things' Will Change Virtually Everything About How Large Companies Operate Emily Adler Aug. 12, 2014, 8:34 AM The Internet Of Things will reshuffle priorities and costs for global enterprises.
  • 13. The IoT will be a diffuse layer of devices, sensors, and computing power that overlays entire business-to-business, consumer-facing and government industries. The IoT will account for an increasingly huge number of connections: 1.9 billion devices today, and 9 billion by 2018. That year, it will be roughly equal to the number of smartphones, smart TVs, tablets, wearable computers, and PCs combined. In IoT research from BI Intelligence, we look at the transition of once-inert objects into sensor-laden intelligent devices that can communicate with the other gadgets in our lives. This represents a major challenge and opportunity for all large companies. The most valuable IoT applications will almost certainly be enterprise uses. Access The Full Report And Data By Signing Up For A Free Trial Today >> The Internet Of Things, or IoT, represents a major departure in the history of the Internet. The Internet is moving beyond the rectangular confines of smartphones and tablets and helping to power billions of everyday devices, including factory assembly lines, workplaces, and parking meters. The numbers being forecast for the IoT are truly mind-boggling. Since it will come to encompass a layer of devices and apps across industries, it will account for an increasingly huge number of connections, 1.9 billion devices today, and 9 billion by 2018, according to BII estimates. Market research and tech firms agree that the IoT, especially enterprise uses, will come to drive trillions in economic value as it permeates business life. The really valuable applications may be enterprise uses such as the auto insurance industry’s early use of monitors to charge motorists only for the amount of time they actually drive. Babelfish Articles May 2014 – July 2014 20-7-14 Page 13
  • 14. The main obstacles to the quick rollout of the IoT are still-immature and fast-changing technologies and standards. There are also challenges presented by the massive scale and uncertain ROI of investment in IoT-type projects. Data security is also a factor. Babelfish Articles May 2014 – July 2014 20-7-14 Page 14 In full, the report digs into some of the top applications for the IoT: Industrial uses including Internet-managed assembly lines, connected factories, and warehouses, etc. Connected advertising and marketing. Intelligent traffic management systems. This includes toll-taking and congestion penalties, as well as smart parking-space management. Waste management systems. In Cincinnati, residential waste volume fell 17% and recycling volume grew by 49% through use of a “pay as you throw” program that used IoT technology to monitor those who exceed waste limits. Smart electricity grids that adjust rates for peak energy usage. Smart water systems and meters. The cities of Doha, São Paulo, and Beijing have reduced leaks by 40 to 50% by putting sensors on pumps and other water infrastructure. Read more: http://www.businessinsider.com/enterprise-growth-in-the-internet-of-things-market- 2014-8#ixzz3AHWx9oKW Attribution 'a work in progress' 12 August 2014 Data sourced from Warc DANA POINT, CA: Attribution and measurement remain a "work in progress" for many brands, which often still rely on simply first-touch and last-touch metrics, a leading executive has argued. Geoff Ramsey, chairman/co-founder of research firm eMarketer, discussed this theme while speaking at the Association of National Advertisers' (ANA) Digital & Social Media Conference. "Consumers are seamlessly flowing from one device or platform to another, and it is very challenging to reach them," he said. (For more, including a wealth of media-usage data, read Warc's exclusive report: The latest digital trends from eMarketer.) Drawing on industry research, Ramsey reported that just 3% of companies worldwide believe they are "completely integrated" across all functions. A further 43% were self-described as being "poorly integrated", while 46% asserted they were "improving" in this area. A primary reason behind this lack of understanding relates to the difficulty of constructing the structures and processes needed to fully understand the increasingly complicated media universe. "Complex attribution and measurement models certainly remain a work in progress," said Ramsey. Two-thirds of marketers, he continued, typically look to "last-touch" or "first-touch" metrics in their measurement strategies.
  • 15. Such an approach, however, is not sufficient, as it effectively means they are "ignoring all the activity, exposure and engagement that happened prior to that", and thus miss out on the nuance of the current path to purchase. "Only 22% of marketers," Ramsey added, "say they're using cross-channel attribution approaches." To more rigorously appreciate how consumers leverage different digital tools, brands need to have a much more expansive remit. "The end goal is to try to harvest the streams of data that are coming from mobile, from social, from video, across all platforms and devices," said Ramsey. As consumers increasingly hop between one device and the next, pursuing such initiatives is becoming a necessity. "They expect you to be there, too, and to be able to recognize them," said Ramsey. Babelfish Articles May 2014 – July 2014 20-7-14 Page 15 Dominant 2014 Trends among Brazilian Internet Users by Sergio Kligin@US Media Consulting on JUNE 23, 2014 in BRAZIL, INTERNET, MARKETING, ONLINE Let’s start with online ad investment figures from IAB Brasil: In 2013 online advertising in Brazil grew by nearly 26% to reach R$ 5.7 billion (US$2.5 billion) In 2014 it will grow another 25% to reach R$ 7.1 billion (US$3.2 billion) Unlike Projeto Inter-Meios, IAB Brasil counts search, social and classified in its figures for online ad investment, whereas Projeto only counts display. Since Projeto reports that overall 2013 ad investment in Brazil was R$ 47.9 billion (US$21.4 billion), this means that online ads took up nearly 12% of the overall ad spend. What to Know When Targeting Brazilian Internet Users Recent data from comScore’s Brazil Futuro Digital 2014 and other sources offers some guidance for planning online campaigns in Brazil. Here are the trends to keep in mind: >>>Start Test Campaigns with Instagram if You Haven’t Already Why: Instagram use in Brazil has grown by nearly 900% since January 2013 >>>Ignore the Reports about Facebook Losing Influence in Brazil and Elsewhere Why: Facebook takes up nearly 98% of the total time that Brazilians spend on social networks Twitter takes up only 0.7% Total number of Facebook fans in Brazil has gone up by 148% Total monthly interactions Across Top Facebook Pages in Brazil has gone up by 26% >>>Mobile Components to Online Campaigns in Brazil Are Increasingly Important Why: In January 2014 there were nearly 115 million active mobile Internet subscriptions in Brazil, 56% more than in January 2013 Mobile devices were responsible for nearly 12% of page views in Brazil in February 2014 Mobile device share of page views in Brazil went up by 132% between 2013 and 2014 43 million Brazilians surf the Internet using mobile devices Brazilians are more engaged with mobile ads than consumers from other countries >>>Social Campaigns Remain Crucial to Reaching Brazilian Internet Users Why: Total time spent on social networks grew by 6% in Brazil between 2013 and 2014 Brazilians spent nearly 13 hours in February on social sites Brazilians spend more time on Facebook than the Mexican and Argentine online audiences combined: 46 million minutes in February 2013 versus 22 million minutes in Mexico and 22 million in Argentina Despite Facebook’s dominance, other social sites are growing in Brazil, particularly LinkedIn, Tumblr and Yahoo Profile Brazil is #2 in the world in terms of the reach of blogs: 77% reach compared to 78% reach in Japan, the #1 country in this respect >>>Online Video Still Commands a Strong Audience in Brazil Why: In February 2014 Brazilians watched 156 online videos per viewer, compared to 160 per viewer in February 2013
  • 16. YouTube is still the online video leader with Brazil, with 85 videos per viewer watched every month, while Globo is #2 with 30 per month Turner Digital and Facebook are the fastest-growing online video sites in Brazil, posting 262% and 228% growth since 2013, respectively http://latinlink.usmediaconsulting.com/2014/06/dominant-2014-trends-among-brazilian-internet-users/ Babelfish Articles May 2014 – July 2014 20-7-14 Page 16 8 Keys to Powerful Mobile Campaigns in Brazil by Sergio Kligin@US Media Consulting on MAY 15, 2014 in BRAZIL, MARKETING, MOBILE It’s clear that a mobile revolution is taking place in Brazil. You can see for yourself the numbers we have observed through our own research. The challenge is in how to convert this massive group of users into a massive group of buyers. A recent study from PricewaterhouseCoopers may help with this. The research company polled mobile device users from Brazil to better understand their attitudes toward mobile advertising. We decided to turn these findings into tips that our clients and colleagues may be able to take advantage of as they target Brazilians with mobile ad campaigns. #1 Make your ad relevant. Besides Brazilians, PricewaterhouseCoopers surveyed mobile users from China, the United Kingdom and the United States. The results showed that Brazilians were the most receptive to mobile ads and in fact 82% of Brazilian mobile users said they are likely to click on a mobile ad. However, the 82% indicated that the ad content needs to be relevant for them to click. #2 Use mobile video. When asked to rank their favorite mobile ad format, 55% of Brazilian mobile users selected video, while 12% selected banners and 11% selected coupons. Only 5% preferred an ad displayed after an in-app activity. #3 Target daily. When asked how often they preferred to be targeted by mobile ads, 44% of Brazilian mobile users reported that they preferred to be targeted daily. In contrast, 27% of Brazilians prefer to be targeted weekly by mobile ads and 10% prefer monthly targeting. A small percentage (9%) said they preferred hourly targeting, while another 9% of the users said they didn’t want to be targeted at all by mobile ads. #4 Make sure the factors fit. Large majorities of Brazilian mobile users identified a number of key factors that they see as most important for mobile ads. First, 86% of Brazilians say that it’s most important for ads to be relevant. Other important factors that Brazilians think are very important for mobile ads are offering free things (78%), products/services that are specific to user locations (76%) and the duration/size of ads (74%). Other factors that Brazilians regarded as important for mobile ads include offers that are good for a limited time (67%), the ad format (62%) and personalizing ads so they use the user’s name (54%).
  • 17. #5 Target by interest. More than 7 in 10 Brazilians (74%) said that they prefer that mobile advertising target them by interest, and in fact users in the other countries also had this approach as their biggest preference. The other important targeting criteria cited by Brazilians was location—44% said that they prefer that mobile advertising target them by location—and name, since 41% prefer targeting by name. Other targeting criteria ranked considerably lower, including online purchase history (37%), types of sites they visit with their mobile phone (28%), by their route to work (19%), by keywords uses in text messages (15%) and by keywords used in emails (15%). #6 Run the campaign in the morning. More than 3 of 10 Brazilians (33%) reported that they prefer to be targeted by mobile ads in the morning when they wake up, while 14% prefer targeting when they are on their way to work and 10% prefer it while at work. Another 13% prefer to be targeted in the evening before dinner and another 11% prefer targeting on weekends. Given that we’re discussing mobile campaigns what’s ironic is that only 3% of Brazilians said they preferred to be targeted while on the move. #7 Be careful about personal space. One of the key concerns that Brazilians have about mobile ads is that it crosses the line into their personal space. In the context of the study, this means that Brazilians are concerned about ads that target by tracking texts and emails or ads received as text messages. Another concern is that mobile ads are too intrusive, meaning that they interrupt an activity that is important to mobile users at the time, such as getting directions or playing a game. #8 Adapt your approach to their preferred scenario. As part of the survey, PricewaterhouseCoopers presented mobile users with various scenarios for receiving a mobile ad based on user location. For Brazilians, the most preferred scenario (80% of users) was the coffee shop scenario: a user walks by a coffee shop and receives message with a coupon for a discounted drink at the coffee shop—if they buy in the next 10 minutes. The second most popular scenario (67% of users) was one in which the phone knows the user is a fan of Michael Jordan and while the user is at the mall, they receive an alert for a store that sells Air Jordan sneakers. Another popular scenario (65% of users) was the milk reminder. In this scenario, a mobile user’s phone receives data from the user’s grocery shopping reward card. As a result, the phone knows the user last purchased milk 7 days before, so it reminds the user they are out of milk and provides route guidance to the nearest supermarket on the way home from work. In this scenario, the phone knows the user’s route home because it has passively tracked their commute http://latinlink.usmediaconsulting.com/2014/05/8-keys-to-powerful-mobile-campaigns-in-brazil/ Vibrant Media Finds that Consumers Trust in Branded Content on Par with Editorial Babelfish Articles May 2014 – July 2014 20-7-14 Page 17 Written on Aug 7, 2014 (ADOTAS) New research into the value consumers place on digital content shows that just two percent more consumers trust content from publications (35 percent) than from brands (33 percent). However, the data from native advertising company Vibrant Media also found that there are more consumers who distrust content from publications (18 percent) than there are who distrust content from brands (15.5 percent). When Vibrant Media’s researchers focused their assessment on media titles and brands with which consumers were familiar, they exposed a greater disparity in levels of distrust between brands and media titles: the number of consumers that distrust content from media titles they know (12 percent) is double the number who distrust content from brands that they know (6 percent). Cynicism about content increases with age. Consumers aged 13-34 years old proved to be more trusting of all content producers compared to those aged 35-64. The study also found that 50
  • 18. percent of respondents feel that it is important they be informed that an advertiser has paid for content. The research results offer reassurance to publishers considering introducing branded content along with their editorial. Craig Gooding, Executive Chairman & Founder of Vibrant Media, said, “The very fact that consumers’ level of trust in branded content is even on par with editorial is very surprising. Moreover, the higher levels of distrust in publishers’ content than branded content shows far less cynicism about branded content than we expected. The findings have reassured us that publishers who offer branded content, or are considering doing so, are not compromising their relationship with consumers – as long as they do so responsibly.” Babelfish Articles May 2014 – July 2014 20-7-14 Page 18 Vibrant’s New Content Marketing Units – Vibrant Amplify Addressing the findings of the research, Vibrant Media is launching four new cross-platform native ad units to help consumers easily discover brands’ content – whether paid, earned or owned – from within editorial. Distributed across Vibrant Media’s network of over 6,600 premium publishers and performing on both mobile and desktop devices, these content marketing units give consumers much greater access to brands’ digital content compared to relying solely on search engines or the reach of a brand’s social media profiles. Vibrant’s units also give consumers control and choice, as a variety of relevant branded content can be presented from one interface. The units join the hugely successful Mosaic format, expanding Vibrant’s content marketing tools into a new range named “Vibrant Amplify”. The units only launch when a consumer actively chooses – either by tapping, clicking or lingering over a Vibrant Amplify mechanic for over three seconds. Four of the formats can be launched from overlays appearing at the bottom of editorial images or from double-underlined keywords within editorial: • Vibrant Content Distribution (NEW) Both publishers and advertisers can use the Distribution units to enable consumers to easily find content on social channels or owned platforms such as websites or digital magazines. Once a consumer chooses to launch a Content Distribution unit they are presented with a snapshot of the content they can connect to – an image, headline and introduction. Notably, the publisher or advertiser only pays when the consumer clicks through to the full content. • Vibrant Content Curation (NEW) This engagement-focused format encourages consumers to interact with brands’ content without leaving the publisher’s page. Vibrant Content Curation units present various formats of content – videos, images, articles, demos, games and more – in an interactive full-screen unit. Brands can build a Curation unit of exclusively branded content or present both branded and licensed editorial content to consumers. • Vibrant Amplify Live (NEW) Through Vibrant Media’s dynamic content management system, brands can give consumers access to distributed branded content which is updated in real-time. Amplify Live enables brands to develop a truly responsive relationship with consumers, either by displaying curated content as it happens on a single interface or distributing real-time updates to drive consumers to their websites and social media platforms. • Vibrant Mosaic Launched in April 2013, this full-screen interactive format integrates brands’ social media and branded content into a single app-style presentation of various tiles of mixed media, including Twitter and Facebook feeds, YouTube videos, Pinterest images, articles and games.
  • 19. Gooding said, “It’s clear that quality branded content has great power. But standards must be maintained to preserve the publisher-consumer relationship. All our campaigns follow the Vibrant principles of responsible native advertising: Integrity, Transparency, Proportionality, Relevancy and Appropriate Placement.” Babelfish Articles May 2014 – July 2014 20-7-14 Page 19 • Integrity Vibrant’s account managers and agency partners foster collaboration among the publisher and brand teams to ensure that editorial, sales, creative and marketing goals are aligned. The support of editorial teams is imperative, as the placement and function of the units rely on engaging editorial. Consequently, the units directly prove the value of journalists’ work because users’ interactions with the content marketing units – their hovers and taps – demonstrate to publishers and advertisers that the user is engaged with the editorial. • Transparency Each of Vibrant’s native advertising units is plugged into Vibrant IQ, the intelligent qualification process that ensures transparent native advertising and non-intrusive brand messaging by briefly displaying the logo of the advertiser to consumers before they choose to launch a Vibrant ad unit. Vibrant IQ not only makes it clear to users that a marketing message is available within content, but also the specific brand that is promoting the message – before commercial content is even displayed on screen. This process enables consumers to make informed choices before deciding to access each specific brand’s content. • Proportionality The Vibrant units sit unobtrusively within content. Publishers control both the number of native ads displayed within content and the frequency with which brands’ content is displayed. This ensures consumers get the content they want. • Relevancy The units are displayed in context, so they are not only relevant to the consumer but to the content within which they are placed. Vibrant’s research found that most consumers (64 percent) said that they are more likely to pay attention to an ad if it is placed within relevant content. • Appropriate Placement Vibrant’s units are launched from hyperlinks within editorial text or nimble overlays at the bottom of editorial images, so they unobtrusively fit the form and function of digital content. Because the units are responsively designed, they function as intended on all devices. The placement of the units is governed by Vibrant’s brand safety policies, which have been independently verified by media measurement body the Audit Bureau of Circulations (ABC) as meeting all current good practice standards. Key to the management of appropriate placement is SafeServe™, Vibrant’s content verification technology, which contextually analyzes editorial in real time to ensure the suitability of content units. Post-Click Content Preferences Vibrant Media’s researchers also found that when consumers want more information about a brand or product after seeing an ad, one in three (33 percent) said the most useful source of information was the advertiser’s own website. This was five times the number of consumers who stated that articles written by journalists about the brand or product are the most useful source of information (6 percent). Even advertorials – articles written by the brand advertiser themselves but displayed on a third party publisher’s website – ranked higher than those written by journalists,
  • 20. with 8 percent of consumers stating that they found advertorials to be the most useful source of information about the brand or product. Gooding said, “When looking for information about a brand, a third of consumers found the brands’ website most useful. This suggests that they are becoming more open to information directly from brands. With all the investment in content marketing, we are starting to see brands re-invest in their websites, developing content hubs so consumers have a reason to visit and find out more. It’s therefore important for brands to remember that one of their most crucial items of content is their own website, so it must not be neglected.” Babelfish Articles May 2014 – July 2014 20-7-14 Page 20 Ranking of Receptivity to Branded Content Formats Images ranked highest in Vibrant Media’s poll of consumers’ receptivity to branded content formats – 64 percent stating that they were receptive to brands’ images and just 12 percent saying they were not receptive to images. Video content followed, with 57 percent stating they were receptive and 20 percent unreceptive to such branded content. Just under half of consumers (46 percent) said they were receptive to articles written by brands, while 19 percent reported that they were unreceptive to that format. Brands’ social media updates were the most unpopular of all branded content formats consumers could choose from. Thirty percent of consumers said they were unreceptive to brands’ social media posts – just 42 percent said they were receptive to such content. Interestingly, 44 percent of consumers said they were still receptive to straight-forward online advertising, such as standard banner ads, although nearly one in four (24 percent) said they were unreceptive to those formats. Methodology Vibrant Media surveyed 1,000 people between the ages of 13 and 64 across the United States who owned at least one of a computer, a mobile phone or a tablet, each of which must connect to the Internet. The survey was conducted online by Toluna, a leading online panel and survey technology provider. The Future of Across-Screen Advertising, Part I -- Bill Harvey By Bill Harvey Published: August 7, 2014 Symphony Advanced Media (aka SymphonyAM) and TiVo Research have announced a new partnership. They are building out joint sample size to allow the combination of TiVo/TRA’s purchase data driven ROI measurement with Symphony’s cross-screen passive audience actions measurement. The combination promises the ability to produce the most complete track of the stimulus events leading up to a significant response event. A picture says it best:
  • 21. This is essentially the Holy Grail of Attribution Analytics. The chart above is in effect what is simulated by modelers performing attribution analytics. Some modelers use homemade formulas but the best utilize the same kinds of multiple regression statistics used by Mix (Marketing Mix Modeling). However, without the real data on a decent sample size such as TiVo/Symphony is aiming for, these exercises are really best estimates rather than true measurements. The actuals will enable the most profitable decisions and actions far more than modeled estimates, although both are better than the seat-of-the-pants approach, which has been the core technique of the industry since time immemorial. Once we have that view of the world, what will we discover and what will we do differently? Probably a lot of things. One of them will be a new/old technique we might wind up calling Across- Screen Advertising: The practice of having advertiser content simultaneously on more than one of the screens the user is currently using. Like every other “new” idea, it is old. Back in the 1980s the first “second screen” plays began to be seen, either with a single-purpose screen or a screen built into the TV remote control channel changer. Street wisdom of the era said that taking the consumer’s eyes off the main screen was a bad idea so none of these ideas ever flew. Symphony has now reported that for 32% of the time in which people who own a smartphone and/or tablet are watching TV in primetime they are also using one of those other devices. And this figure climbs to 40% during ad pods. This “rampant” level of usage led CBS’s David Poltrack and me to give a presentation at the ARF Audience Measurement conference last month. He kicked off by showing a slide of a huge football stadium with a humongous video screen. Dave is always in the Flow or Observer state and understands that to provoke a massive change in the way people do business you have to first take their mental set and change it. Using the analogy of an unprecedentedly large arena that could hold 15,000,000 people to describe a typical high-rated CBS series, he asked the ARF audience to think about what else they would do in the stadium -- besides put an ad on the video screen -- to take advantage of such an opportunity. Babelfish Articles May 2014 – July 2014 20-7-14 Page 21
  • 22. Personally, I thought about introducing a new beverage that the hot dog peddlers would deliver at an introductory discount, with the vendors singing along with the commercial while it was on the giant screen. Plus messages with the same song appearing on built-in screens in front of each seat and the attendees’ own smartphones and tablets if they happen to have them open at the time. Dave effectively got people to think out of the box and to wonder about doing the same thing in people‘s living rooms where they really can reach 15,000,000 people at the same time via the smartphones and tablets and even laptops that some TV viewers are often using while watching TV. Bill Harvey is a well-known media researcher and inventor who co-founded TRA, Inc. and is itsBill Harvey Strategic Advisor. His nonprofit Human Effectiveness Institute runs his weekly blog on consciousness optimization. Bill can be contacted at bill@billharveyconsulting.com Babelfish Articles May 2014 – July 2014 20-7-14 Page 22 How Successful People Stay Calm August 05, 2014 The ability to manage your emotions and remain calm under pressure has a direct link to your performance. TalentSmart has conducted research with more than a million people, and we’ve found that 90% of top performers are skilled at managing their emotions in times of stress in order to remain calm and in control. If you follow our newsletter, you’ve read some startling research summaries that explore the havoc stress can wreak on one’s physical and mental health (such as the Yale study, which found that prolonged stress causes degeneration in the area of the brain responsible for self-control). The tricky thing about stress (and the anxiety that comes with it) is that it’s an absolutely necessary emotion. Our brains are wired such that it’s difficult to take action until we feel at least some level of this emotional state. In fact, performance peaks under the heightened activation that comes with moderate levels of stress. As long as the stress isn’t prolonged, it’s harmless.
  • 23. Research from the University of California, Berkeley, reveals an upside to experiencing moderate levels of stress. But it also reinforces how important it is to keep stress under control. The study, led by post-doctoral fellow Elizabeth Kirby, found that the onset of stress entices the brain into growing new cells responsible for improved memory. However, this effect is only seen when stress is intermittent. As soon as the stress continues beyond a few moments into a prolonged state, it suppresses the brain’s ability to develop new cells. “I think intermittent stressful events are probably what keeps the brain more alert, and you perform better when you are alert,” Kirby says. For animals, intermittent stress is the bulk of what they experience, in the form of physical threats in their immediate environment. Long ago, this was also the case for humans. As the human brain evolved and increased in complexity, we’ve developed the ability to worry and perseverate on events, which creates frequent experiences of prolonged stress. Besides increasing your risk of heart disease, depression, and obesity, stress decreases your cognitive performance. Fortunately, though, unless a lion is chasing you, the bulk of your stress is subjective and under your control. Top performers have well-honed coping strategies that they employ under stressful circumstances. This lowers their stress levels regardless of what’s happening in their environment, ensuring that the stress they experience is intermittent and not prolonged. While I’ve run across numerous effective strategies that successful people employ when faced with stress, what follows are ten of the best. Some of these strategies may seem obvious, but the real challenge lies in recognizing when you need to use them and having the wherewithal to actually do so in spite of your stress. Babelfish Articles May 2014 – July 2014 20-7-14 Page 23 They Appreciate What They Have Taking time to contemplate what you’re grateful for isn’t merely the “right” thing to do. It also improves your mood, because it reduces the stress hormone cortisol by 23%. Research
  • 24. conducted at the University of California, Davis found that people who worked daily to cultivate an attitude of gratitude experienced improved mood, energy, and physical well-being. It’s likely that lower levels of cortisol played a major role in this. Babelfish Articles May 2014 – July 2014 20-7-14 Page 24 They Avoid Asking “What If?” “What if?” statements throw fuel on the fire of stress and worry. Things can go in a million different directions, and the more time you spend worrying about the possibilities, the less time you’ll spend focusing on taking action that will calm you down and keep your stress under control. Calm people know that asking “what if? will only take them to a place they don’t want—or need—to go. They Stay Positive Positive thoughts help make stress intermittent by focusing your brain’s attention onto something that is completely stress-free. You have to give your wandering brain a little help by consciously selecting something positive to think about. Any positive thought will do to refocus your attention. When things are going well, and your mood is good, this is relatively easy. When things are going poorly, and your mind is flooded with negative thoughts, this can be a challenge. In these moments, think about your day and identify one positive thing that happened, no matter how small. If you can't think of something from the current day, reflect on the previous day or even the previous week. Or perhaps you’re looking forward to an exciting event that you can focus your attention on. The point here is that you must have something positive that you're ready to shift your attention to when your thoughts turn negative. They Disconnect Given the importance of keeping stress intermittent, it’s easy to see how taking regular time off the grid can help keep your stress under control. When you make yourself available to your work 24/7, you expose yourself to a constant barrage of stressors. Forcing yourself offline and even—gulp!— turning off your phone gives your body a break from a constant source of stress. Studies have shown that something as simple as an email break can lower stress levels. Technology enables constant communication and the expectation that you should be available 24/7. It is extremely difficult to enjoy a stress-free moment outside of work when an email that will change your train of thought and get you thinking (read: stressing) about work can drop onto your phone at any moment. If detaching yourself from work-related communication on weekday evenings is too big a challenge, then how about the weekend? Choose blocks of time where you cut the cord and go offline. You’ll be amazed at how refreshing these breaks are and how they reduce stress by putting a mental recharge into your weekly schedule. If you’re worried about the negative repercussions of taking this step, first try doing it at times when you’re unlikely to be contacted—maybe Sunday morning. As you grow more comfortable with it, and as your coworkers begin to accept the time you spend offline, gradually expand the amount of time you spend away from technology. They Limit Their Caffeine Intake Drinking caffeine triggers the release of adrenaline. Adrenaline is the source of the “fight-or-flight” response, a survival mechanism that forces you to stand up and fight or run for the hills when faced with a threat. The fight-or-flight mechanism sidesteps rational thinking in favor of a faster response. This is great when a bear is chasing you, but not so great when you’re responding to a curt email. When caffeine puts your brain and body into this hyperaroused state of stress, your emotions overrun your behavior. The stress that caffeine creates is far from intermittent, as its long half-life ensures that it takes its sweet time working its way out of your body. They Sleep
  • 25. I’ve beaten this one to death over the years and can’t say enough about the importance of sleep to increasing your emotional intelligence and managing your stress levels. When you sleep, your brain literally recharges, shuffling through the day’s memories and storing or discarding them (which causes dreams), so that you wake up alert and clear-headed. Your self-control, attention, and memory are all reduced when you don’t get enough—or the right kind—of sleep. Sleep deprivation raises stress hormone levels on its own, even without a stressor present. Stressful projects often make you feel as if you have no time to sleep, but taking the time to get a decent night’s sleep is often the one thing keeping you from getting things under control. Babelfish Articles May 2014 – July 2014 20-7-14 Page 25 They Squash Negative Self-Talk A big step in managing stress involves stopping negative self-talk in its tracks. The more you ruminate on negative thoughts, the more power you give them. Most of our negative thoughts are just that—thoughts, not facts. When you find yourself believing the negative and pessimistic things, your inner voice says, “It's time to stop and write them down.” Literally stop what you're doing and write down what you're thinking. Once you've taken a moment to slow down the negative momentum of your thoughts, you will be more rational and clear-headed in evaluating their veracity. You can bet that your statements aren’t true any time you use words like “never,” “worst,” “ever,” etc. If your statements still look like facts once they’re on paper, take them to a friend or colleague you trust and see if he or she agrees with you. Then the truth will surely come out. When it feels like something always or never happens, this is just your brain’s natural threat tendency inflating the perceived frequency or severity of an event. Identifying and labeling your thoughts as thoughts by separating them from the facts will help you escape the cycle of negativity and move toward a positive new outlook. They Reframe Their Perspective Stress and worry are fueled by our own skewed perception of events. It’s easy to think that unrealistic deadlines, unforgiving bosses, and out-of-control traffic are the reasons we’re so stressed all the time. You can’t control your circumstances, but you can control how you respond to them. So before you spend too much time dwelling on something, take a minute to put the situation in perspective. If you aren’t sure when you need to do this, try looking for clues that your anxiety may not be proportional to the stressor. If you’re thinking in broad, sweeping statements such as “Everything is going wrong” or “Nothing will work out,” then you need to reframe the situation. A great way to correct this unproductive thought pattern is to list the specific things that actually are going wrong or not working out. Most likely you will come up with just some things— not everything—and the scope of these stressors will look much more limited than it initially appeared. They Breathe The easiest way to make stress intermittent lies in something that you have to do everyday anyway: breathing. The practice of being in the moment with your breathing will begin to train your brain to focus solely on the task at hand and get the stress monkey off your back. When you’re feeling stressed, take a couple of minutes to focus on your breathing. Close the door, put away all other distractions, and just sit in a chair and breathe. The goal is to spend the entire time focused only on your breathing, which will prevent your mind from wandering. Think about how it feels to breathe in and out. This sounds simple, but it’s hard to do for more than a minute or two. It’s all right if you get sidetracked by another thought; this is sure to happen at the beginning, and you just need to bring your focus back to your breathing. If staying focused on your breathing proves to be a real struggle, try counting each breath in and out until you get to 20, and then start again from 1. Don’t worry if you lose count; you can always just start over.
  • 26. This task may seem too easy or even a little silly, but you’ll be surprised by how calm you feel afterward and how much easier it is to let go of distracting thoughts that otherwise seem to have lodged permanently inside your brain. Babelfish Articles May 2014 – July 2014 20-7-14 Page 26 They Use Their Support System It’s tempting, yet entirely ineffective, to attempt tackling everything by yourself. To be calm and productive, you need to recognize your weaknesses and ask for help when you need it. This means tapping into your support system when a situation is challenging enough for you to feel overwhelmed. Everyone has someone at work and/or outside work who is on their team, rooting for them, and ready to help them get the best from a difficult situation. Identify these individuals in your life and make an effort to seek their insight and assistance when you need it. Something as simple as talking about your worries will provide an outlet for your anxiety and stress and supply you with a new perspective on the situation. Most of the time, other people can see a solution that you can’t because they are not as emotionally invested in the situation. Asking for help will mitigate your stress and strengthen your relationships with those you rely upon. ABOUT THE AUTHOR: Travis Bradberry, Ph.D. Dr. Travis Bradberry is the award-winning co-author of the #1 bestselling book, Emotional Intelligence 2.0, and the cofounder of TalentSmart, the world's leading provider of emotional intelligence tests, emotional intelligence training, and emotional intelligence certification, serving more than 75% of Fortune 500 companies. His bestselling books have been translated into 25 languages and are available in more than 150 countries. Dr. Bradberry has written for, or been covered by, Newsweek, BusinessWeek, Fortune, Forbes, Fast Company, Inc., USA Today, The Wall Street Journal, The Washington Post, and The Harvard Business Review Beacons: Closing the Gap on Proximity Marketing by Scott Varland, 7-4-14 Many in the industry would agree that the Holy Grail of a campaign is in understanding your consumer; where they are, who they are, and when they are most likely to purchase the product at hand. Now, more than ever, it is essential to reach the consumer at the right place and right time, and in a way they are not only comfortable with, but have already integrated into their daily routine. Enter proximity marketing – namely, Bluetooth beacons. Despite all the recent attention, we still have no idea how big proximity technologies will really be and how much they will change our lives. This is the technology powering the internet of things - the unification of the physical world with the digital world. It is this fusion which creates a new “super power” of sorts – a capacity to create zones of interaction within physical space, putting big data to small tasks. As this space continues to expand and develop rapidly, it too will impact the capabilities, and ultimately the scope of everything within our society. The duality that sometimes the proximity enabled space will help contextualize the smartphone, and at other times our smartphone will contextualize the space, creates an open-door to what is possible. For beacons, reach (and integration) is currently limitless. BLE beacons are the purest form and expression of “Here and Now” media, truly encapsulating the concept that media is everywhere. By having the ability to be ‘everywhere’ and ‘anytime’ it is important to remember the consumer and their routines and needs - simplicity is key. As we introduce this technology, the most important thing to nail is the experience. If it is not immediately helpful, revenant, and personalized, it will fail. Things that are deemed “helpful” are not considered invasive.
  • 27. The principal value in proximity technology is not the nearby deal alerts; it is the larger implications for connectivity with a consumer. It will be in making the world more responsive to needs, wants and goals (and being there in the moment to have a solution on hand). Beacons are the start of what will be the continuous shift in how media is consumed, and how interactions with the consumer are made. Can you finally forget your password? Even your heartbeat could hold the key Babelfish Articles May 2014 – July 2014 20-7-14 Page 27 July 22, 2014 10:00PM THE password might be dying but it is a slow demise. A decade ago, then Microsoft chairman Bill Gates predicted the impending demise of the password because “they just don’t meet the challenge for anything you really want to secure”. Proving his point, Forrester Research estimates more than $200 billion is lost annually due to password breaches. Plus, Gartner says up to half of calls to help desks are to reset forgotten passwords. Iris / eye recognition Biometrics PERSONAL OZ Picture: Supplied It has been predicted that 5.5 billion people will use biometric technology in mobile and wearable devices as password alternatives by 2019. Source: Supplied McAfee Asia Pacific chief technology officer Sean Duca says the industry is still wrestling with a replacement.
  • 28. “Every single vendor is trying to work out how do we actually eliminate passwords,” Mr Duca says. “It’s not an easy thing to shift. It’s a mindset but the technology has evolved.” Since MIT researcher Fernando Corbato invented the computer password in the ’60s, users have struggled to remember a growing list of secret codes. The solution most adopted is bad management. The built-in fingerprint scanner on the iPhone 5S is seen as a turning point in the acceptance of biometrics. Source: Supplied Research shows 40 per cent of people use one of the 100 most common passwords. “A typical password is either something I have or something I know,” Mr Duca says. “But the big thing that we’ve always tried to shift towards is something that you are — the biometric.” Security experts cite the launch of the Apple iPhone 5S, with a built-in fingerprint scanner, as a turning point in the acceptance of biometrics as an alternative to passwords. A Goode Intelligence report last month predicted 5.5 billion people will use biometric technology in mobile and wearable devices as password alternatives by 2019. “What will be truly transformational about the use of biometrics on wearable devices is the birth of the universal authenticator — a device that intuitively knows who we are, where we are, what we want to do and can open doors — both physical and virtual,” report author Alan Goode says. This year’s International CES featured tools to replace the password. Some, such as YubiKey, require a physical key paired with a PIN, while others relied on biometrics. They included the FingerQ fingerprint scanner, EyeLock iris scanner, AGNITiO voiceprint authenticator, and the Nymi wristband that verifies people by heartbeat. Babelfish Articles May 2014 – July 2014 20-7-14 Page 28
  • 29. The Nymi wristband verifies people by unique signals in their heartbeat. Source: Supplied Many companies promoting biometric alternatives to passwords are part of the FIDO Alliance, an industry group that has the backing of ecommerce heavyweights Visa, MasterCard and PayPal, along with tech giants Google and Microsoft. Mr Duca says the key to using biometrics is to rely on a combination of sensors rather than one identifier, which could be unreliable. “If you can’t use one then let’s use the other because that shouldn’t stop the user. As soon as we start to make it hard ... for the user, they walk away and start to use the passwords of old, which is ‘password12345’,” he says. “I don’t think we’re going to see the complete death of the password because it always goes back to the core of access control — something you have, something you are, something you’ve got. It’s just going to be part of that overall puzzle in terms of trying to get access control.” Tourism New Zealand hires drones to make ‘dronies’ the new ‘selfies’ this ski season Babelfish Articles May 2014 – July 2014 20-7-14 Page 29 July 23, 2014 12:00AM
  • 30. Smile for the camera ... drones will become increasingly evident in tourist locations, experts predict. Picture: Brendon Thorne Source: Getty Images Babelfish Articles May 2014 – July 2014 20-7-14 Page 30 SELFIES are so 2013. This year New Zealand wants you to take dronies with your cronies instead. Dronies, or short videos of yourself captured using a drone, are a fresh use of the remotely controlled, pilotless aircraft. The term was coined three months ago in response to Photojojo founder Amit Gupta’s video of himself and the mountain on which he and his friends were standing. The trend has since taken off on social media sites including Instagram, with more than 1200 uses of the #dronie hashtag. New Zealand’s tourism authority is now planning to cash in on the trend, buying a $1400 DJI Phantom 2 Vision+ drone to tour the country’s ski slopes, as well as Queenstown and Lake Tekapo, to capture tourist dronies.
  • 31. Smile on the slopes ... a drone moves in for a close-up. Source: Supplied Tourism New Zealand Australia general manager Tony Saunders said the project was designed to appeal to the tourism market’s "younger audience, who we know are all about selfies”. “Obviously, everyone is aware how popular selfies are and dronies are getting a lot more attention,” Mr Saunders said. Babelfish Articles May 2014 – July 2014 20-7-14 Page 31 “Dronies are an innovative way to capture their favourite memories.” The DJI drone will record eight-second, full high-definition videos of tourists, starting with a close-up and panning back to reveal the Kiwi ski slopes.
  • 32. Babelfish Articles May 2014 – July 2014 20-7-14 Page 32 Someone’s watching ... a tourist strikes the pose. Source: Supplied The drone will tour New Zealand this month and next, including Coronet Peak, Cardona, Mount Hutt, and Mount Cook, with participants’ videos uploaded to Tourism New Zealand’s Instagram account, from which they can be shared. Mr Saunders said after their use on the ski slopes, the drone could be used to capture dronies of cycling, touring or golfing holidays in the country. Dronies could become more popular outside the tourism industry in future, if drone enthusiasts are to be believed. Sky Cam USA owner David Quinones plans to launch a drone video website, YouDrone.com, for flying videos later this year. 5 Ways to Move the Needle: What I Learned During the World Cup Marko Muellner | July 22, 2014 The World Cup had much to teach marketers about how to accelerate growth and popularity - aka how to move the needle. Read on to see what the world's biggest sporting event can teach you. I'm a soccer fan, always have been. I love to play and watch. I love the MLS, the Timbers, the 2013 Champion Thorns, and I'll watch the Premier League even though I don't follow any specific teams or players. I'm also an MLS LIVE subscriber, which means I pay to be able to watch games on my computer and mobile devices, which I do regularly, even when I'm standing in line at the supermarket.
  • 33. While many of us enjoyed the World Cup for the competition, players, rivalries, stories, and the pure global feel of the event, I enjoyed it for another reason as well. I learned a ton about marketing and about how soccer in America - and the MLS - might apply a few key lessons in our effort to accelerate growth and popularity - in our effort to move the needle. Babelfish Articles May 2014 – July 2014 20-7-14 Page 33 1. Get Local I was in New York City during the World Cup and I found myself in a cab listening to one of those dumb sports talk radio shows. Oddly, the conversation was insightful and interesting. The hosts were what you'd expect - loud and opinioned American sports fans, not very knowledgeable of soccer. Luckily, one of their producers was British, so he filled in the gaps. They revealed two interesting insights marketers should heed: They knew very little about their local teams or the MLS. These are top sports guys in a city with good teams (Red Bulls and soon NYCFC) and they knew nothing - it was surprising. They agreed that Americans need hometown teams and heroes, that having great American players on European/International teams doesn't have the same impact as having local teams and players to root for and become passionate about. Living in Portland, I totally agree. Even when the Timbers struggle, the community is strong and unwavering. I also grew up in Boston, where local fandom can be insane. The World Cup, even more so than the Olympics and other international competitions, embodies the "local." For many of the countries that qualify, there is no greater prize than the World Cup, and as we saw with Brazil, disappointing results can have massive implications for the entire country. In the U.S., our fandom is usually deeply rooted in our hometown and community, and while the MLS and local teams have done a good job in some regions, a deep focus on local team success will raise all boats. For marketers, this is about understanding your key customer's affinities to their state, city, town, or community. Country pride is essential to World Cup success - what passions and loyalties do your customers have that you can authentically attach to or supplement? Regional affiliations are the obvious "get local" technique, so what about lifestyle affiliations like cycling or hip-hop. Are there common passions your audiences share? Can you give them something to love? 2. Make It Matter While the MLS All-Star Game is in three weeks, I think the biggest opportunity is to use the playoffs and World Cup to capitalize on fans' hunger for "games that matter." While many U.S. fans won't admit it, they tend to be primarily playoff fans. Sure, they might check in on their team during the regular season, but it's not until the playoffs that fandom is really ignited. While they don't begin until the end of October, it would be smart for the MLS to begin to promote them through the summer. We all want a team to root for and if we're excited about the playoffs, we may be more likely to check out our local teams or the teams of top players now so we're ready in the fall. For marketers, "making it matter" can manifest itself in many ways. The core question is, "How do you create or participate in high-stakes contexts?" Can you host or attach yourself to an event that matters to your key audiences? Can you infuse your marketing efforts with rewards, fame, or pride? Competitions are obvious - what else can you do to make it matter? 3. Guide Your Audience
  • 34. During the World Cup I discovered and then followed Men in Blazers. While they are particularly funny and entertaining, they are also helpful and insightful and as each game approached, I found myself looking to them for help in understanding the players, stakes, and history. Being guided was hugely helpful and made the games more enjoyable. Soccer in America, while far more mature than it's been, still has a way to go. This means that education and guidance are essential to growth. Babelfish Articles May 2014 – July 2014 20-7-14 Page 34 Which teams should I start watching? Which games are the best match-ups and why? What's the best way to watch games? When do the playoffs begin? How do they work (format)? Soccer 101 content like rules and basic strategy can be condescending to all but the greenest audiences. Focus on the middle of your audience, those that know the basics and are open to learning more. Provide them with real tools to help them better understand and enjoy your products. I would love to get an MLS post in my Facebook Newsfeed every week with a "March to the Playoffs" update that included info on the best teams, upcoming match-ups, and even "goal of the week" videos. A very simple idea that would fuel my passion and encourage me to share with friends. Guide and they will follow. 4. Lengthen the Burst While the World Cup is a long event by most standards - just more than a month - it does a remarkable job of packing a lot of excitement in early and then stretching out slowly over time. I found that having two, three, or four games a day for a few weeks to be unusually engaging and exciting. This is true of basketball and baseball playoffs as well, but there was something special about the World Cup. Maybe it was the summer or that the time zones mostly aligned, but having a dense offering every day for an extended amount of time was amazing. For most marketers, we're lucky if we can sustain a campaign for more than a week with any level of intensity. We tend to spike our spend and effort at the beginning and then maybe again during a "refresh" period. In digital, this model feels antiquated (it is) and out of place. If you have a moment, I highly recommend you watch this video by McKinsey Principal David Edelman. He presents a new model for mastering digital marketing where we sustain messaging and effort over longer periods of time and test and learn as we go, an iterative approach. While few of us have the amount of content in a World Cup or playoff series, there are definitely lessons to be learned around creating longer sustained bursts of content and engagement for a wide range of key audiences. 5. Make Access Free and Easy Lastly, a big idea. The MLS should make the live broadcasts of every playoff and cup game free through their MLS LIVE platform. I'm sure it's not negotiated with their partners, but I believe this single idea would do more for U.S. soccer than all other tactics combined. I'm not suggesting MLS LIVE become a free service, and I love the free weekly stream they already offer, but during the playoffs, when it matters, providing free and easy access would expose the most compelling part of their product to the largest possible audience.
  • 35. Having easy access to every game through ESPN and Univision apps was remarkable. The mobile apps both saw staggering growth in visits and livestreams and for good reason. As shared in the above article, even wide and free access to digital streams didn't impact TV broadcast numbers. There's little risk and a lot of upside for everyone involved. For marketers, the disruptive nature of digital across much of our lives has major implications for how people discover, explore, and even buy our products. What would happen if you took the most compelling part of your offering - not all of it, just a key selection - and made it massively accessible and free? Unheard of? Break through the fear and think about it. You don't need to share it with your boss yet but think about it. Univision drove 3.4 million downloads of their app and many, many Super Bowls worth of livestreams during the one-month period. According to Mehul Nagrani, digital senior vice president and general manager, they have now shifted their digital strategy primarily to soccer. Babelfish Articles May 2014 – July 2014 20-7-14 Page 35 Retention vs. Acquisition - and the Winner Is… Ohad Hecht | July 20, Marketers need to decide which is more important to them - acquiring new leads and potential customers, or retaining and nurturing the current customer base. "To be or not to be?" asks Shakespeare's Hamlet. For years digital marketers faced the same conundrum: "to buy or not to buy?" in reference to purchasing leads and prospects...also known as spamming (although hopefully you're in the "not to buy" camp). Knowing how to spend your marketing budget with confidence is always a challenge. Where do I allocate the money so it makes most impact? How do I allocate the money in a way that I can show tangible results? These are the typical questions marketers ask themselves. Of all the questions, the most critical to answer is do we invest good money in acquiring new customers, or do we focus on retaining the customers we have already acquired and personalize their experience? "To retain or acquire?" - this is the question. And before I let you know the answer, let's look at what marketers are currently doing.
  • 36. Babelfish Articles May 2014 – July 2014 20-7-14 Page 36 econsultancy-survey According to a survey by Econsultancy, 34 percent of the participants indicated that they will increase their investment in acquisition, while only 18 percent will focus on retention. If we look at content marketing strategies, one of the main goals is acquisition (71 percent of responders), and Forrester concurs: "Marketers obsess over acquisition. Even as the lines between marketing and customer experience blur, our survey respondents prioritize customer acquisition efforts over nurturing and deepening relationships with their most valuable and loyal customers."
  • 37. Babelfish Articles May 2014 – July 2014 20-7-14 Page 37 customer-retention Looking at what the others (not "the others" from Lost!) are doing, it is very clear that marketing budgets are over-focused on acquisition rather than retention. If you're a regular reader of my columns, you'd be expecting me to start talking about increasing allocation of budgets to retention. And you would be right, this is exactly what I am going to do... Here is an example to start illustrating my thinking: Joe is an online shoe retailer who became really successful with his business. He uses Google and Facebook to advertise the branded shoes he has on offer. In a hyper-competitive branded-shoe industry, the customers are only looking at the prices they can easily compare with a simple search. So Joe needs to invest a lot of money to generate sales. Ninety-eight percent of his business is first-time buyers. With only 2 percent repeat buyers, his product costs are most likely to look like this: Acquisition: $20.00 G&A: $10.00 Shipping: $5.00 Product cost: $50.00 Profit margin: $15.00 Total: $100.00
  • 38. With higher advertising costs and lower loyalty, he is seeing his acquisition costs spiking. With this example, and provided that advertising costs remains the same, he will need to sell 6,600 pairs of shoes for a profit of $100,000. To prove my point, let's assume that 98 percent of his business will be focused on selling to clients he already acquired: He's profit margin grows to $35, as he is dropping his acquisition costs. In order to reach to a $100,000 profit he will now need to sell only 2,800 pairs of shoes (i.e. 58 percent less). This in turn will probably further help to decrease the G&A costs, and Joe will be able to pass on some of these savings to his customers. I've recently argued that the role of the digital marketer is to sell, and here is a good example of a real impact on the company performance and margins that is directly attributed to the efforts of the marketer. Continuing with this train of thought, it becomes clear that if you focus your efforts mostly on acquisition, you're actually working for your competitor who provides their client with a more individual customer experience, and making sure that their customers stay loyal. Babelfish Articles May 2014 – July 2014 20-7-14 Page 38 And the Winner Is...Retention! If your start-up days are behind you and your business is established, chances are that growing your business will be cheaper and faster if you retain and sell to your existing client base. This is not to suggest that you need to abandon acquisition efforts completely, but you need to shift the focus to your existing clients. If you are a start-up, then naturally your initial objectives should be to focus on new business acquisition and then as the customer base increases, start shifting the focus to retention. But before I finish, a quick word of caution regarding ERFM: If you intend to use ERFM analysis on your database, be careful if you are focusing too heavily on acquisitions. You will find that most customers will be skewed to the right hand side of the lifecycle (inactive or churning clients) with much fewer customers in the center (loyal) and in the initial stages (first-time buyers). Connecting the Dots to Deliver Context Catherine Magoffin | July 22, 2014 The scattered data "dots" of your email marketing strategy need to be connected and put into action in order to create a successful, contextual email marketing experience. I often use (or overuse) the phrase "connect the dots" to summarize the process of synthesizing information to come up with a conclusion based on a set of data/input points. This phrase works for me across a multitude of scenarios in which marketers derive insight or realize progress thanks to an increased understanding of their customers' behaviors and preferences. Steve Jobs also referenced the art and science of dot connecting at his Stanford commencement speech in 2005, saying, "You can't connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future." If you've ever done a connect-the-dots image in a coloring book, you know how the page initially looks like a bunch of scattered dots and by connecting them, a distinct shape forms. A similar process of connecting the data dots is an integral component of contextual marketing. Your
  • 39. consumer email lifecycle marketing strategy depends upon a bunch of scattered implicit and explicit data "dots." These scattered data dots need to be connected in a meaningful way and put into action to achieve a contextual marketing experience. Data drives experience in today's marketing machine, with data and automation forming the perfect union to deliver the right message to the right place at the right time - with the end goal of driving specific consumer actions. A first step to connecting the data dots is to assess available data based on actions across channels. Below are useful and commonly available customer interaction data types listed by channel: Email: Opens and clicks on content such as articles, offers, products, surveys/poll, social links, Babelfish Articles May 2014 – July 2014 20-7-14 Page 39 preference centers, and more. Social: Clicks to social links, sharing links, social login, social content, and social data. Mobile: Mobile email and site engagement data such as email opens, device type, mobile app downloads, alert actions, mobile account access, mobile purchases, text to join email, and more. Display Retargeting: Response to incremental display touch points driven by site browsing, email response dormancy, and more. Web Commerce: Visits, time on site, browsed products, carted products, wish lists, and favorite products. Click-to-Call or Chat: Clicks to get additional assistance are key behavioral triggers. Real World Dots: Email sign-ups in-store or at an event, catalog or direct mail response, and purchases are all valuable data dots. Understanding how channels work together to drive consumer experience and actions is key. By combining customer interaction data from brick-and-mortar, events, Web commerce, email, social, mobile, display, phone, and even direct mail catalogs, marketers are able to paint a more accurate picture of individual customer behaviors and preferences. As automation puts the data into campaign action, the goal is to create a one-click contextual ripple effect, where insights gained from previous interactions inform subsequent messaging to more effectively drive future customer engagement. As marketers, you've earned those click actions, so put them to good use to fuel your automated email and cross-channel experiences. Then, once you have a clear strategy of how to put your data into action, test your theories and, as Steve Jobs said, start to "trust that the dots will somehow connect in your future." Why Marketers Love Big Data & Hadoop Michele Nemschoff VP of Corporate Marketing, MapR Technologies Posted on July 19th 2014 In the past advertising and marketing was pretty straight forward. Girls like pink and boys like blue. Women belonged in an apron and men in the garage. Furthermore, the power was in the hands of businesses rather than those of the consumers. Thankfully, the cultural and digital revolution changed everything we once knew about advertising. In today’s world, the consumer has all the power. We do what we want, when we want. We can skip commercials, opt out of advertising and navigate our own way through our buyer’s journey. In short, we can outright refuse to be marketed to.
  • 40. To those of us whose job it is to market product, this may seem like a bad thing. In actuality, this is the most liberating time us marketers have ever experienced. Rather than throwing spaghetti at the wall, vast amounts of data have empowered our ability to make decisions. By utilizing this data with technologies like Hadoop, marketing efforts are more precise and efficient than ever. Let’s go through just a few ways that big data has enhanced marketing optimization and the marketing industry as a whole: Babelfish Articles May 2014 – July 2014 20-7-14 Page 40 Lead Scoring Lead scoring uses predictive modeling to improve marketing effectiveness. Based on a set of criteria, lead scoring models determine a lead’s ripeness for conversion. With the growth of the digital age, consumers are providing incredible amounts of personal and professional data that makes lead scoring so accurate. Lead scoring functions on three different types of data: Explicit - This is data about the consumer. Examples are company size, job title, location, industry, etc. Implicit - Implicit data is about the consumer’s activity. This can be their activity on your website, the types of content they participate in, email open rate, etc. Social - Social networking is frequently intermingled with onsite activity. Data on the consumer’s social activity is also considered in their lead score. Lead scoring accuracy depends on the availability of large quantities of data. Once your business has established itself with a sustainable level of leads, lead scoring may be a powerful tool in your marketing kit. Persona Research The cultural revolution has opened up niches of interest that have never been available before. Instead of dooming ourselves to predestined stereotypes, all of us have become entitled to embrace unique identities. This mighty shift in culture has made life more fulfilling for the average consumer. It has also made life a little more challenging for the average marketer.Long gone are the days of identifying the target audience exclusively by age, gender and income. Today, the most effective of marketers build complete buyer personas. Buyer personas use data on much more than just demographics. The consumer’s beliefs, attitudes, opinions, values and personality all play a role in how we market to them. The cultural language and jargon is also evaluated. The places the consumer frequents, their research and buying patterns, how they navigate the web; it all comes together to create a complete picture of who the buyer is. When we know our customer at this deep of a level, it becomes much easier to identify a marketing message that resonates with them. Our customers are so unique and using big data has become a helpful partner in peeling back the onion on who they really are. Measuring Marketing Effectiveness The addition of digital access has generated an influx of available marketing mediums. This high variety in marketing channels is great when locating the eyes of your target buyer. To ensure marketing effectiveness, you want access to data and a lot of it. n the past, the only data marketing channel owners could really provide was a basic number of visitors. Today, big data tools provide far greater detail into a marketing effectiveness. Let’s look at just a couple examples.
  • 41. Video - There is so much more to know than just how many visitors will come in contact with a video. Using big data, data analysis can show how long a user watched the video. It can show heatmaps of where the user’s attention was during the duration of the video. Display Advertising - Detailed analytics reports can quickly decipher the value of display advertising. Built-in algorithms help identify which campaigns are profitable and which are siphoning money in the long run. Ultimately, without measurability in your marketing, effectiveness is impossible to determine. Data quantifies marketing effectiveness by opening up measurability far beyond what was once available. Babelfish Articles May 2014 – July 2014 20-7-14 Page 41 Creating Customer Relationships The most effective form of marketing is building customer relationships. The “one and done” buyer is expensive to acquire and offers little value to the company. Instead, the development of a relationship creates trust and a platform for mutual value exchanges. By using big data, we can better identify what our buyers expect from us. Of course the end goal for us is to earn their business. To be worthy of their patronage, however, we need to be constantly providing for their needs as well. This can come in the form of information, connection, self-fulfillment etc. Data analytics and digital connectivity are the bridge between us and them. By knowing their needs we can create entire communities around what matters most to them. Conclusion Marketing has always been a science more of wisdom than intellect. We are charged with understanding our buyers better than they understand themselves. Big data is just another tool in the hands of a master marketer. The futuristic sci-fi medical technology being used today 11 HOURS AGO JULY 21, 2014 4:41PM We’ve seen the future of medical technology in sci-fi films and TV but there’s some impre We’ve seen the future of medical technology in sci-fi films and TV but there’s some impressive hi-tech advancements actually being used today. Source: ThinkStock
  • 42. EXOSKELETONS helping the paralysed to walk, tiny maggot-inspired devices gnawing at brain tumours, machines working tirelessly as hospital helpers: in many respects, the future of medicine is already here. Experts say that, at the experimental level, human skills are already being enhanced or replaced by robots and other hi-tech substitutes — and these may become commonplace just a few years from now. “If one had spoken of this 10 years ago, people would have said it’s science fiction. Today, it is a reality,” French ophthalmologist Gerard Dupeyron said of one of the most advanced technologies helping people today — the bionic eye. Babelfish Articles May 2014 – July 2014 20-7-14 Page 42 Some recent advances: Tumour-eating ‘maggots’
  • 43. University of Maryland's Jaydev Desai shows off a prototype of a robot that he and collea University of Maryland's Jaydev Desai shows off a prototype of a robot that he and colleagues are developing to minimise harm to patients during brain surgery. Source: Supplied Last year, scientists at the University of Maryland School of Medicine in Baltimore said they had developed a creepy-crawly device inspired by the humble maggot that zaps tumours with electricity and sucks up the debris. The finger-like prototype has multiple joints allowing it to move in several directions, according to a press release from the National Institute of Biomedical Imaging and Bioengineering, which funded the work. The idea for the tiny neurosurgical robot was born from the difficulty doctors have to reach many types of deep-seated tumours in the brain. Researchers were testing the safety of the device in pigs and human cadavers. Babelfish Articles May 2014 – July 2014 20-7-14 Page 43 Cancer-crunching claws Inspired by crab pincers, scientists in Singapore created a tiny robot which can access a person’s stomach via the throat to cut up tumours using miniature claws. One robotic arm holds the tumour while the other slices away, according to the Nanyang Technological University (NTU), which took part in the research. The procedure, that could take as little as 20 minutes, may one day eliminate the need for surgery, which can take hours. The Master and Slave Transluminal Endoscopic Robot (MASTER) has been tested successfully in patients, according to the NTU. Roboskeletons
  • 44. Half man, half machine. The exoskeleton is like having a brand new body. Half man, half machine. The exoskeleton is like having a brand new body. Source: Supplied Engineers around the world are racing to design the lightest, most autonomous robotic exoskeleton, not only to restore movement to disabled people but also to boost the strength and endurance of those who carry heavy cargo or walk very far, like soldiers or rescue workers. Strapped to the lower body, such devices are powered by motors that take some of the strain off the muscles — similar to the brain-controlled suit that helped a paraplegic kick a football at the World Cup opening ceremony. Several prototypes have been developed, but many battle to meet the key challenge of compact, long-lasting, carry-on power supply. Babelfish Articles May 2014 – July 2014 20-7-14 Page 44 Computer chip sight A bionic eye offers a vision of the future.
  • 45. Babelfish Articles May 2014 – July 2014 20-7-14 Page 45 A bionic eye offers a vision of the future. Source: AFP Among the recent advances in treating degenerative retinal diseases is the so-called “bionic eye”, which has restored rudimental vision to dozens of people in Europe and the United States. The system works with a chip implanted in the eye to mimic the function of photoreceptor cells, typically combined with a miniature camera mounted in a pair of sporty-looking sunglasses. The camera sends images via a mini computer to the chip, which converts them to electrical signals to the brain, where they are interpreted as vision. In one patent, the chip itself functions also as photoreceptor and transmitter. A drawback for the tens of millions of people suffering from diseases like retinitis pigmentosa is the cost — these vision aids cost about 100,000 euros ($140,000) each. Healers, gophers and caregivers To bypass human tremors and the need for large cuts for surgeons to get their hands on a deep organ, much smaller surgeon-guided robot prongs and pincers are increasingly being used for minimally invasive procedures. They also allow for degrees of rotation and motion beyond what the human hand is capable of, and make remote surgery possible by allowing doctors to control a scalpel in robotic hands on another continent. Saving the health sector a pretty penny in labour costs, robots are also starting to take over duties as hospital as cart pushers. And at home, they can help the disabled communicate and be more independent — one type of robotic arm has a spoon at the end allowing for self-feeding. Best Practices: How to Woo Mobile Daters Advice for Marketers Courting Consumers With Romance Apps
  • 46. Babelfish Articles May 2014 – July 2014 20-7-14 Page 46 By Mark Bergen. Published on July 15, 2014. 0 More brand advertisers may soon join the online dating fray, lured by a fast-growing, engaged consumer segment. IPG Media Lab has released a report advising advertisers chasing those consumers who have shifted online dating to smartphones. The report follows a similar white paper IPG, part of the Interpublic Group, published in April on social messaging apps. Mobile dating, the report claims, is tracing a similar trajectory of rapid growth, commanding increasing attention from young audiences. It's a shift marketers can't ignore. "Here's another group of apps that are forming their own media ecosystem based purely on its size," said Melvin Wilson, head of strategy at IPG Media Lab and co-author of the report. IPG examined three of the largest platforms: Tinder, the dating app owned by IAC/InterActiveCorp; HowAboutWe, a platform for couples; and Grindr, an app for gay and bisexual men. Tinder claims to register 750 million interactions -- it has a 'swipe' feature for flipping through potential suitors -- per day. By comparison, Twitter claims 500 million tweets per day. The category's growth, Mr. Wilson claimed, will mimic Twitter's trajectory. Each dating service began as a utility but can, like Twitter has, morph into a richer, ad-selling media platform As media platforms, romance apps are still in the early, awkward phase. Executives at Tinder, whose influence inside of IAC has swelled recently, have allowed a few promotional campaigns and expressed interest in running more native advertising within the app. (Its executives are also dealing with a sexual harassment lawsuit.) "Right now, brands are kind of hacking the apps to create they're own experiences," Mr. Wilson said. Here, three key lessons for brands looking to court mobile daters. Lead with a pretty face Online dating is a vanity game. And the first advertisers to arrive on mobile apps have taken note. Fox ran promotions for "The Mindy Project" show on Tinder, creating dating profiles for its lead characters; USA tried something similar with the show "Suits." Marketers should enter with a clear, recognizable spokesperson, IPG advised in its report -- after all, mobile dating, particularly Tinder, is built on snap judgments. It helps to have attractive endorsers. Although the rules can be bent: HBO teased its show "The Walking Dead" on Tinder with handsome models that quickly morphed into zombies. Ad Age DataCenter 25% Expedia ad-to-sales percentage Reward people for their attention Mobile romance can offer advertisers several chances to enter into the courtship. Advertising on the apps, the report writes, should focus on value exchange: "offer people a discount, a sneak peek or even a funny moment to reward people for their attention." Domino's, for instance, ran a discount campaign on Tinder for Valentine's Day. Retail brands may soon be able to join the fray, as apps like HowAboutWe expand offerings to rope in location-based offerings from restaurants and venues. One day soon, a couple could connect on an app like Tinder, and then be served an ad from a neighborhood flower shop. A Domino's campaign on Tinder. A Domino's campaign on Tinder.
  • 47. Babelfish Articles May 2014 – July 2014 20-7-14 Page 47 Don't come on too strong Social media is a personal space, where advertisers must tread carefully. Online dating is even more intimate. Some marketers have used this intimacy to their advantage -- health advocacy organizations have run campaigns on Grindr aimed at sexual health information. But most advertisers should be mindful of this line, IPG advised. Domino's can rake in new shoppers on Valentine's Day; but it can't run a romantic promotion every week. "At some point, the brand has to step away," Mr. Wilson said. The Influencer Economy By Steve Kraus Wednesday, July 16, 2014 As we explore how Affluents make media choices and purchase decisions, we are consistently struck by the importance of word-of-mouth and personal recommendations from others. In fact, across many of the categories we examined, recommendations from friends or family are consistently among the most frequently cited factors shaping marketplace decisions. Our latest studies examined the opposite side of this dynamic – understanding the influencer rather than the “influencee” – and underscores the finding that the Influencer Economy is widespread, growing, and extremely impactful. For example, our research finds that… • Affluents are spreading their influence more than ever; they are increasingly likely to describe themselves as taking the lead in decision-making, and enjoying the process of sharing their opinions. • Affluents are also spreading their influence more widely, as their interpersonal networks are growing in size, both online and offline. • Affluents continue to grow in their financial influence, fueled by factors including the trend toward income concentration. These factors combine to make the Influencer Economy particularly potent among Affluents – three-fourths consider themselves influential or provide advice in at least some respect, with nearly half describing themselves as influencers in areas relating to media, dining and travel. Looking ahead, expect the Influencer Economy to become even more widespread and potent. The rise of social media and the popularity of consumer review sites are providing more platforms for Influence. More individuals now have the motivation and the tools to build a following; at the same time, consumers are increasingly seeking the advice of others for a variety of reasons. For media and marketers, the growing Influencer Economy presents challenges and opportunities. They must adapt and evolve to thrive in a marketplace where their influence on consumers is sometimes less direct, and increasingly mediated through the lens of Influencers. Still, by connecting and collaborating with Influencers, brands have the opportunity to connect with more consumers, more quickly, more efficiently, more authentically, and in ways that are more mutually-satisfying. Many brands are striving to make their content more “snack-able” and “share-worthy,” in an effort to increase the odds that Influencers will disseminate that content further. But getting the attention of Influencers, and truly engaging them, first requires a deeper understanding of who Influencers are and what inspires them. Beyond an enthusiasm for a particular category, our profiling work suggests they are often early adopting, high-spending, information-hungry people of passion. In other words, they might be your most important customers even if they weren’t influential, and their influence magnifies their importance
  • 48. In Brazil, What Happens While Car Shopping Ends up on Social Babelfish Articles May 2014 – July 2014 20-7-14 Page 48 Nearly half of new-vehicle shoppers in the country would buy online Jul 8, 2014 Interest in purchasing a vehicle online is rising, especially in growth markets, according to March 2014 polling by Capgemini, which looked at consumers worldwide who were in the market for a new vehicle. One such country was Brazil, where nearly half of the 1,068 new-vehicle shoppers studied said they would be likely or very likely to purchase a vehicle online. While this trailed many other countries included in the survey, it still indicates that online automotive purchases in Brazil are close to becoming a majority activity, presenting new opportunities for dealers. Though the country may lag slightly when it comes to digital purchases, it dominates in other online areas during the car shopping process—specifically, social media.
  • 49. Capgemini found that new-vehicle shoppers in Brazil were very likely to post about their vehicle experiences on social media, with 84% either already sharing opinions and information or intending to do so. In addition, just 16% of respondents from Brazil weren’t interested in posting about car shopping. Interestingly, respondents from more developed countries such as the US and the UK showed little interest in using social media during the auto-buying process. eMarketer calculations based on data released in February 2014 by IBOPE Media found that auto resales and dealerships were the No. 6 product/category in terms of ad spending in Brazil, with BRL2.64 billion (more than $1.22 billion) invested in such ads last year. Automaker retail came in at a very close No. 7, seeing BRL2.63 billion (nearly $1.22 billion) in ad spending last year. As more of Brazil’s car shoppers take to digital channels during the process, it’s likely that a larger share of ad expenditures on these products/categories will go toward online efforts. - See more at: http://www.emarketer.com/Article/Brazil-What-Happens-While-Car-Shopping-Ends-up- Babelfish Articles May 2014 – July 2014 20-7-14 Page 49 on-Social/1010894/12#sthash.XME1TTpp.dpuf Programmatic + Immersive TV Experiences Wednesday, July 16, 2014 By Cory Treffiletti As the ink dries on upfront deals, this is the time of year when we start talking about the ongoing impact of television for advertisers, but I wanted to take a slightly different approach. Rather than talk about the ongoing marriage of digital video with TV, I wanted to address what a fully integrated digital TV experience is starting to look like, and how that will change over the next three to five years. More and more, the question arises: Going forward, who owns the “TV” experience? Is it the network who creates the show, the MSO that provides the access (both via cable/satellite and through delayed viewing), the set-top-box manufacturer who owns the hardware and the operating system, or the digital platform that extends the program into the digital eco-system, through streaming and other methods? I think the answer is “all of the above.” On numerous occasions, I’ve made the case for programmatic and/or private exchanges being implemented against TV inventory, but I would couple that prediction with the rise in truly immersive experiences that many cable operators already offer, which will continue to be augmented with digital media. I’ve seen some very interesting offers coming from the likes of AT&T U-Verse, among others, that package together online display, local commercial inventory, customized in-guide content and infomercials that reside on stand-alone channels within the on-screen guide. If you take these experiences and continue to add in social and mobile, you create truly cross-platform, immersive experiences that marketers can use to engage their audiences in a much deeper fashion. This drives customers conversions at higher double-digit rates vs. the poor conversion rates for standard digital display. Consumers are self-selecting, with only the most interested starting the process, but that’s OK if the ROI is strong enough. Digital media enables customization, and these kinds of immersive experiences, when combined with addressable media vehicles, can drive efficiency for marketers. TV is still the Holy Grail, and money is still being poured into the channel. A recent study from LUMA Partners calls out the dramatic differences between digital media and TV media spend, with about 100 companies responsible for $150 billion in TV spend, while the digital media space has around 400 companies generating about $6 billion in spend. You do the math – if a marketer leaves the train station with $100 million to spend and is traveling 100 mph north, towards which media channel will they arrive fastest? I know – that makes no sense, but the answer is TV!
  • 50. TV is important, and it’s going to become more important as it maintains its position as the lynchpin of marketing and advertising for years to come. Marketers will approach the major players in TV and look for standard commercial inventory, augmented, immersive experiences, programmatic add-ons and digital extensions wherever they can get them. On the digital side of the business, more companies will be expanding into video and creating collaborations with the traditional media world while still taking advantage of audience-based marketing tools and technology. These one-stop opportunities will be the core of a great brand strategy, offset with the rest of the ecosystem via technology and data-driven audience buying. Consolidation will happen, but not at the rate you might think, because traditional companies may not dive so deeply into digital that they need to acquire all of these companies. The tech platforms are where the acquisitions will happen, enabling traditional media channels to continue their focus on content and distribution of that content. Babelfish Articles May 2014 – July 2014 20-7-14 Page 50 Of course, I could be wrong. I just don’t think that I am. What do you think? Innovation Is Marketing’s Job, Too by Beth Comstock July 3, 2014 When I took over as chief marketing officer at GE, the mandate from CEO Jeff Immelt was to make marketing a vital operating function that could drive organic growth. We realized early on that it wouldn’t be enough for marketers just to focus on advertising and external messaging. We were in a unique position to integrate ideas and teams across the company, and to draw insights from the outside world. So we signed up to fight in a bigger way for the market and GE’s place in it. GE’s best path to organic growth is to continue the world-changing innovation it has always been known for. The ethos of restless invention has driven us since the days of Thomas Edison. In marketing, we resolved to fuel that innovation, and also to make our own efforts as creative and valuable as the products coming out of our R&D labs. Now, after more than a decade of experimentation, I can share the formula we’ve developed. Tested and proven at GE, it might be similarly effective for other marketers looking to create value and drive innovation in their businesses. Go to new places. GE’s marketers have to be explorers, seeking out new places and bettering our understanding of what people need in every corner of the globe. We’ve found this to be true across industries, but particularly in health care. It’s wonderful to be trusted to create sophisticated products for highly trained physicians at world-class medical centers. But if we also want to compete in the world’s fastest growing markets, we also need to see that, in many places, power supplies are intermittent and the medical professionals interacting with patients are mainly midwives and practitioners with limited training. Marketers can provide that kind of insight and fight for better outcomes for customers in the markets we serve. Here’s an example of what can happen when we do: GE now sells ultrasound machines that are portable and durable enough to simply be trekked in to wherever they are needed. Using them is almost as simple as flicking the on/off switch; red and green lights serve as indicators. And therefore, pregnant women in remote locations are better served. For GE, the value doesn’t end there. When marketers are empowered to understand where the world is going, the fresh understanding they deliver of what customers value and how to deliver that value can be scaled across the company.
  • 51. Shape the market early. The really good innovations – the ones that change the world – need to be explained before they’re accepted. Recently, for example, I’ve been posing this question to our markets: What happens when billions of machines come online and start communicating? As we enter the age of the Industrial Internet (GE’s term for that invisible web connecting all these brilliant machines), it’s up to marketers to define for regular people and business customers how this new reality will drive different outcomes. At the same time, our explanatory powers can push our own company to do its best thinking about the possibilities for connecting industrial technology, analytics, and user experiences. Because this is the kind of breakthrough innovation that GE excels at, one of our mantras in marketing is “mindshare before market share.” We’ve had to achieve that with ecomagination and, more recently, with GE’s innovations in advanced manufacturing. It has meant becoming a content factory – telling stories across media and methods from data to videos to social media. Through good storytelling and by connecting with others who share interests in getting those stories out, we help shape the markets in which GE’s offerings will be able to deliver value. We anticipate what our customers – future and present – will need, and describe it. Long before customers are clamoring for specific solutions, marketing is setting the stage. Incubate new businesses and models. Part of marketing’s mandate at GE is to find ways the company has not thought of before to promote ongoing innovation. That can be as simple as creating a “protected class” of ideas that are therefore given more time to prove their value. This kind of treatment gave rise to the Durathon battery, which provides backup power for cell towers in parts of Africa where the electricity supply is intermittent. The technology began life as a project to create a battery for a hybrid locomotive; only later was it adapted for other applications. Another boost to innovation via marketing has been FastWorks, a program designed to integrate startup culture into our DNA. It simplifies development and gets products to market faster. Invite others in. At GE, we don’t want to solve every problem alone. Partnerships are the path to speed and scale. That’s why we’ve established connections with the data competition site Kaggle, the cloud-based engineering platform GrabCAD, and the invention factory Quirky. We’ve taken to market several creations that came to us through Quirky inventors, including the sleek Aros air conditioner. These opportunities evolved from marketing people asking simple questions: Are we open to creating meaningful new partnerships? Are we experimenting often and in new spaces? Demolishing the barriers between innovators at GE and makers outside the company has expanded our creative territory, and it’s just one more way we’re fighting for the market. Back when Edison was alive, there were still a few mad scientists around trying to invent a perpetual motion machine. Of course, given the laws of physics, it isn’t possible. But when a marketing department helps to fuel the very innovations it promotes, it can feel like it is. Perpetual-motion marketing – marketing that connects the company’s offerings to markets, and in making those connections generates new energy around invention – is a minor miracle we can achieve. And for a company whose future depends on innovation, it might be the only way to go. Babelfish Articles May 2014 – July 2014 20-7-14 Page 51 It’s Time for Boards to Cross the Digital Divide by Didier Bonnet | 11:00 AM July 9, 2014 Is there any aspect of your daily life and business that is not significantly affected by digital technology? Not likely. Just think about all the ways that digital is integrated into your own daily routine. The ever-growing digital wave is washing over just about every facet of our personal and organizational lives, our consumer experiences, and across every industry and sector in its impact on business models and processes. So one would think that, in light of this, boards of directors would be actively steering their organizations through the digital revolution, right? According to recent research, it appears not.
  • 52. This is disturbing. Despite prominent calls to action, and despite digital’s ubiquity in the press and in many discussions of strategy and tactics across organizational functions, it appears that boards are still not seeing the value of digital. Why? One possible reason is that the financial crisis and the recessionary period that followed have driven corporations to skew their board appointments towards including more risk management and conventional corporate experience, at the expense of more tech-savvy and digital knowledge. In this view, with renewed economic activity, boards will soon catch up with the C-suite’s enthusiasm for all things digital. Don’t bet on it. A more likely explanation for the continuing disconnect is that this is a different and particularly pernicious variety of digital divide. Data supports the fact that this digital divide is more pronounced at board level than in other organizational echelon, and that it is generational in nature. A 2012 survey of board practices reported that almost none of the large-cap companies had a director under the age of 40. Though several digitally-savvy board appointments have been well publicized recently — for example, Walmart inducted Marissa Mayer; Disney nominated Sheryl Sandberg; and Starbucks recruited Clara Shih — if the data is right, such examples would appear to be exceptions rather than the rule. What’s more, this digital divide seems to be evolving in the wrong direction. Research indicates that the average age of independent directors in the S&P 500 companies inched up to 62.9 years in 2013 from 60.3 in 2003, an all-time high. (Of course, age isn’t everything; nor is having a digitally-savvy non-executive director a guarantee of success for your digital transformation.) The continuing gap between the magnitude of the digital challenge and the digital awareness of many corporate boards matters for at least two big reasons. First, with the rise of the digital economy, we are entering a new era of managerial innovation with both opportunities and major risks. Boards cannot remain isolated from this fundamental change. Second, our research at Capgemini Consulting with MIT has shown that successful digital transformation is a top-down leadership exercise. Boards must play a strong leadership role, fully integrating digital into their strategy-formulation and ongoing monitoring activities. Digital transformation is about a careful transition between the old and the new, balancing risk management, value creation and long-term sustainability, which are precisely the key roles of boards. As with any significant shift in the larger business and economic context, it is the duty of the board to exert the required pressure on the CEO and the management of the company to understand and address the impact of digitization on the operations and the long term position of the organization. Senior executives have, for the most part, been making the necessary progress in their understanding of the need for digital transformation in their own companies. If, as the data indicate, boards have not, then it is time for boards to perform their own digital transformation. So what should boards focus on to overcome this harmful digital divide? Here is a litmus test: First, boards should ensure that they recognize the scale and the pace of the digital impact on the corporation. Finding the right tempo is an art form. The digital transition needs to both protect profitable operations and assets, while making the transition to a new digital business or digitally enhancing part of the existing business. Second, boards should step up their understanding of the digital risk profile of the organization. This means they will need to more fully understand how digitization impacts the company’s business model and the part of the value chain that it operates in. Board members need to ask themselves: Where are the vulnerabilities with regard to digital? Are there opportunities for new entrants and competitors to disrupt the existing business model? Babelfish Articles May 2014 – July 2014 20-7-14 Page 52
  • 53. Third, boards also need to understand how digital can help the organization create more value. Again, board members need to ask themselves: Do we understand how customer experience can be enhanced through digitization? Can we use the possibilities of these new digital technologies to drive innovation? What step changes in productivity are possible through digitizing our operations and connecting our workforce more efficiently? Finally, boards also need to ensure that the digital transition is being adequately funded for successful implementation. If you, as a board chairman or member, have a hard time raising these issues or getting your board colleagues to discuss them in any depth, the company could be at risk. What to do? Start a process of digital education for the board. Go outside of your company and industry to see how other companies (and not just tech-related companies) have used digital technology to transform their performance. Get closer to the executive team leading the change to understand the strategy, the priorities and the expected benefits. Ensure that the interactions between the board and the management are more frequent around the topic of digital transformation. And, finally look closely at your board composition. The addition of the right digitally-savvy board members could make a crucial difference. With digital technology and its impact on business growing exponentially, corporations cannot afford a massive digital divide between the board and executive management. Babelfish Articles May 2014 – July 2014 20-7-14 Page 53 Why Offline Data Is Key To Online Data Segmentation by Christopher Hansen, Tuesday, July 15, 2014 Now that advertising is driven by “big data,” marketers are well aware that certain targeting segments can make a positive impact on their campaigns. In ad tech, anyone with an algorithm and a data scientist on their staff can make a few bucks by pulling together some appealing segments and selling them to marketers. However, not all data segments are created equal. If online marketers and data companies keep trying to plug in the same segments, campaign after campaign, they will see diminishing returns. Targeting the same mom or auto intender segments doesn’t do much good. Marketers need some outside-the-box thinking to uncover new data segments, and the secret may lie in offline marketing tactics. When thinking about data segments, it’s important to consider the major life changes when consumers end up making lots of purchases. This is how offline direct-response advertising works, hitting consumers with offers when there’s a likelihood of purchase. Consider mover data, which could be one of the most powerful data segments out there. Have you ever received a mailer from a homegoods retailer when moving? The direct-mail guys have been making a killing off of this data for years, so why aren’t digital marketers? It should be easy to track. A marketer’s partner can understand which customers are 90, 60, and 30 days out from moving based on publicly available real estate data. These 30-day buckets are effective because they allow a marketer -- say a home-supply store or big-box retailer -- to measure the degree of frequency for serving ads, as well as the creative. Home Depot and Lowe's are going to push moving supplies in that 60-day period, while a retailer like IKEA may target urban movers in a shorter 15-day window. Research shows that two-thirds of households that are moving formulate the majority of major-purchase decisions before the move. With a sense of the actual move date, marketers can also use this data to suppress irrelevant ads
  • 54. and audiences. Meanwhile, Best Buy can start serving ads post-move, when it’s time to get a new TV. This kind of data is applicable across many other verticals that aren’t endemically tied to moving: retail, CPG, banking, insurance, you name it. Take a step back and ask “Why do people move?” It might be for a new job, moving to the suburbs with their spouse, or even to start a family. These life changes often lead to changes in purchasing behavior as well. Stats show that even when a move event occurs within a short distance, such as within a Zip code, marketers can’t prove purchasing patterns will remain the same. According to a study conducted by Epsilon, brand loyalty gets put to the test during a move, with a mover being twice as likely to change brands or providers than a non-mover. So while an agency planner might not think a pre-mover segment is an endemic or valuable audience to hit, stats show those who move are 372% more likely to switch baby product brands than those who are not moving, as reported by Ipsos. Certainly, your beer-drinking habits may change based on where you lay your head: Sixpoint in Brooklyn, Yuengling in Philadelphia, and Augustiner in Munich. Why wouldn’t other brands change for consumers? Moving is not simply about cars and mortgages and furniture. Consumers make big electronics purchases after moves: about 55% of moving homeowners purchased at least one major appliance post-move and tend to splurge on themselves more than non-movers. This qualified audience will spend more money on major purchases during the three months surrounding the move (pre- and post-) than non-movers will spend in a five-year period, representing the kind of opportunities that online marketers dream about. Creating the most accurate and current data set of “new movers” requires working with offline providers who collect lists of new home sales, using the new phone and utility installs (electric, water, gas, etc.) as validators against the municipal deed filings and address changes that are initiated by the consumer. This data can then be matched to IP addresses and scrubbed of personally identifiable information before being made available to marketers. For other kinds of data, online partners can organize the offline CRM data into segments, then upload that data to a match partner, based on the segment needs. These onboarded segments can be updated on a weekly basis, just like online behavioral segments, but they’ll be much more highly qualified. The truth is that offline direct-response data can be a lot better than what we make do with online. It’s not inference-based, but instead real consumer data that is cleaned up, made anonymous, and then made actionable. Marketers and ad tech companies alike should be figuring out the process of onboarding it for online use. In the very near future, we’re going to see the old-school way of targeting consumers becomes the new-school data source in online marketing. Babelfish Articles May 2014 – July 2014 20-7-14 Page 54 Is 'Public Vs. Private Exchange' The Wrong Question? by Toby Gabriner, Tuesday, July 15, 2014 The digital ad industry is on the cusp of a seismic shift. We need look no further than the interview of GroupM's Ari Bluman posted recently. Joe Mandese asked tough, thoughtful questions and Bluman came back with tough, thoughtful answers. He made a lot of excellent points about fraud, waste, and the fact that today’s often out-of-control ad tech ecosystem is getting in the way of advertisers getting the return they deserve on their digital investments.
  • 55. Exchanges have embraced the use of data-driven programmatic technologies that originated in the RTB space to automate deals for premium inventory. And this is certainly an improvement over the traditional manual processes that continue to bog down overworked media planners and buyers. But the Holy Grail for the industry will be when advertisers have broad, automated access to premium inventory as they do for the “long-tail” content offered through auctions. Premium publishers are now looking at programmatic to better manage their selling process. But it shouldn’t be an either/or proposition between RTB or buying premium inventory programmatically. There is a need and room for both. What works for GroupM and its clients may not necessarily work for other agencies and advertisers. The common thread, though, is that technology is needed and is being used to make smarter business decisions today in media. The fact is broadcast has had more than 60 years to mature in that regard, and it’s still trying to figure itself out with the advent of fragmentation. On the digital side, there have been and will continue to be challenges and ongoing debates about what works and what doesn’t. And there are still plenty of innovations to come in the fast-paced, nascent world of advertising technology that will cause strategies to be revisited, yet again, down the road. The same is happening on the fraud front, where software to combat bots and ensure viewability and safe ad environments is constantly being challenged by international criminals. Innovations in ad safety will be necessary regardless of the transaction type an advertiser or agency prefers -- direct deal, PMP, open exchange, programmatic direct, etc. -- so it’s important for the industry to continue to stay vigilant and develop multilateral approaches to deal with these issues. At the end of the day, while the manner in which data-driven technology is being applied is clearly shifting, the efficiencies it brings are certainly here to stay. So, while the industry debate today is centered on open exchanges vs. private exchanges, the underlying questions are really about whether business outcomes are being met -- and, most importantly, that engaging with viewers is as efficient and transparent as possible. Babelfish Articles May 2014 – July 2014 20-7-14 Page 55 The way that happens is up to buyers to decide for themselves. In-Car Wi-Fi Will Create Opportunities for Advertisers Down the Road Lisa Lacy | July 15, 2014 A recent announcement from Chevrolet about built-in 4G LTE Wi-Fi furthers the availability of in-car functionality, which could bring opportunities for advertisers and allow marketers to eventually deliver much more targeted experiences by tapping into additional driver details. Chevrolet is rolling out what it calls the "largest deployment of vehicles with built-in 4G LTE Wi-Fi in the market this summer," and the move will help open up opportunities for advertisers in the in-car services market, experts say. "Chevrolet is committed to offering consumers advanced technologies that enhance the vehicle ownership experience," a Chevy rep says. "Offering in-vehicle 4G LTE connectivity will allow Chevy owners to have a strong and consistent Wi-Fi connection that can pair up to seven devices." This feature enables children to remain connected on tablets for streaming movies or playing online games on long road trips and allows small business owners to conduct work remotely, the rep adds.
  • 56. Babelfish Articles May 2014 – July 2014 20-7-14 Page 56 But Chevy certainly isn't alone in offering in-car services like Wi-Fi. Audi, too, has an in-car Wi-Fi offering, Audi Connect. And a Tesla rep says its Model S includes 3G connectivity. And, as ClickZ previously reported, earlier this year, Google announced the Open Automotive Alliance in order to develop Android-based in-car entertainment and information systems for manufacturers like Audi, Honda, and Hyundai. According to Joe Laszlo, senior director of the Mobile Marketing Center of Excellence at the IAB, the addition of automated data services is a natural evolution for in-car services like GM subsidiary OnStar, which provides subscription-based safety, security, and mobility offerings to more than 7 million consumers. However, he questions how many consumers will want or need these services, given that many already have smartphones with 4G data services and may not want to shell out additional money. "What was interesting to me at least was one of the things [Chevrolet emphasizes] is a potentially better connection because a car is a bigger thing than a mobile device and has a bigger antenna," Laszlo says. "Car-based services may be faster and more reliable, but, again, even if the end user discovers that's the case, they'll have to do the mental calculation to determine whether it is worth setting up a new monthly wireless data plan." At the same time, Jason Burby, president of the Americas at digital agency Possible, points to an always-connected generation of future car buyers who may demand such access. He gives a nod to Audi, which has an audience that skews younger than other luxury players like Mercedes and BMW. According to Burby, in-car access also adds up to huge potential for location-based targeting, with the caveat that it also dredges up privacy issues. He says there's a tremendous amount of information marketers can glean from location, which, once privacy issues are sorted out, could help marketers determine where consumers drive, as well as how often and how frequently. It could also give them key information about their daily habits, such as whether they, say, stop at McDonald's every morning or often visit country clubs. That, in turn, could open up opportunities for brands to target specific groups of consumers or to target consumers by habit. Tobin Trevarthen, founder of Spatial Shift and former vice president of monetization of the AHA Radio and the Harman Cloud Platform, says he was behind an interactive car ad for Quiznos that ran across the AHA platform in December. In it, promotional content was mapped to a geofence around 900 Quiznos locations. When the offer and address of the nearest location was displayed on a car's dashboard, interested consumers simply pressed the thumbs-up icon on the screen and a coupon was sent to their phones. "Today in the car, AM, FM, and XM are one-way streams and there's no way to engage with content unless you call or go to the website," Trevarthen says. However, in addition to location, marketers may eventually be able to tap into a whole slew of driver data, Trevarthen says. In fact, he estimates information such as how long drivers are in their cars and what they are listening to will become addressable in 36 to 48 months.
  • 57. He says marketers will also be able to know what routes consumers drive and how many people are in the car "so I think you're going to have all new kinds of targeting parameters that will yield very targeted experiences." Babelfish Articles May 2014 – July 2014 20-7-14 Page 57 And that opens up sponsorship opportunities. Marketers will also be privy to details such as whether the vehicle is a luxury car or a minivan, which means they will have more context-aware filters and can present more targeted offers or scenarios. Trevarthen calls it a new "palate" of capabilities on the way. This includes CRM and content marketing coming to the forefront and/or the genesis of an ad hybrid of sorts in which conditional data like rain could generate an audio message that a vehicle has traction control and ask drivers if they want to improve safety. "Is that an ad? Is that CRM? Is that a native capability that is a new context because the vehicle is now addressable?" Trevarthen asks. Because of the potential to distract drivers, Laszlo says advertisers and in-car services should be thinking more about the people in the backseat or passenger seat. That means there are opportunities for partnerships between advertisers and kids' programmers. In addition, Laszlo says the market could see further efforts to extend voice-enabled services like Siri that would allow drivers to access mobile data services more safely. Trevarthen notes it may also mean brands come up with their own audio cues like Intel has done. "It may be an alert or a voice or maybe someone comes up with a sound-activated thing...and maybe someone is able to create something along those lines that lets you know you're near a 7- Eleven," Trevarthen says. "You can't do that today." Laszlo says it will likely be a while before brands have to start thinking about connected cars as a subset of their overall mobile advertising strategies. However, brands like quick-service restaurants or gas stations may find a natural affinity and find opportunities in order to be among the first in the connected car environment. He also notes there is going to be a "chicken and egg problem" because companies that develop apps will want to see a certain level of adoption and consumers will want to see cool things before they shell out money for connectivity. "For most other brands, I think it's at the far edges of where their short-term mobile priorities will be," Laszlo says. "A lot of brands will see how consumers react to the offering and how fast adoption grows before they start to talk to agencies about cars." Growth Trends & The Rising Influence Of Screen Agnosticism by Paul Bremer, Tuesday, July 15, 2014 Considering the explosive projections for mobile video consumption, it’s worth examining the underlying factors that influence growth, so that we can navigate them within our businesses. By all accounts, mobile video is a distinct opportunity and will remain one. But as consumers become screen-agnostic, advertisers must think similarly. What we understand about mobile video growth quickly becomes less the point than what we understand about video as a whole. We need to study what is driving growth and the kind of change we can we expect, so that we can build video-driven businesses that thrive across screens.
  • 58. Babelfish Articles May 2014 – July 2014 20-7-14 Page 58 But First, a Closer Look at the Numbers Prognosticators believe mobile video adoption is starting to reach meaningful scale. eMarketer is now forecasting that mobile video advertising will practically quadruple in size in four years, from $1.44 billion in 2014 to $5.44 billion in 2018. Another prediction is that mobile video advertising will exceed 44% of the total online video advertising market. Furthermore, eMarketer believes video viewers on smartphones will jump from 89 million in 2014 to 125.4 million in 2018, while at the same time, tablet viewers will increase from 113.4 million in 2014 to 149 million in 2018. Consumer Adoption is The Primary Driver Yes, rapid, enthusiastic consumer adoption of video on mobile bodes well for this narrative. But, as the consumer becomes less discriminating about screen, advertisers, who have benefited from the surge specific to mobile video will have to think more broadly about video. According to a March Deloitte study, fewer than half of Millennials (44%) for example, watch TV/video on actual TV sets. The key is leveraging video, regardless of platform, and having a cross-screen play, in order to keep the audience captivated. The Life Force of Industry Standardization The industry has been waiting for true standardization for some time. It’s what we need in order to achieve measurement parity and bring this whole cross-screen reality to life. In this area, there have been major inroads lately. Look no further than the growing adoption of the IAB’s Video Player Ad-Serving Interface Definition (VPAID). Or, take for example, MRAID, or “Mobile Rich Media Ad Interface Definitions,” that allows for mobile rich-media ads to run in mobile apps. Life before MRAID has been a hassle to some extent, requiring the re-writing of code so that video can run across different apps. Removing that constraint frees up development for brands and the agencies servicing them, who will now be able to traffic creative very easily across applications from different creative. Again, this all encourages video impartiality. The more effectively we can measure and optimize across screens, the better off we are as individual video mediums. After all, important video performance metrics like completion rates are high for mobile video so its individual value will continue to shine in a multiscreen world. Speaking of which… Viewability as the New Norm Thankfully, viewability is not an applicable standard for premium (video ads preceding video content) mobile video, given the nature of the full screen experience. The IAB standard for video ad completion is any video impression watched through the third quartile. And, premium mobile video completion rates regularly exceed 85%. For comparison, desktop video completion rates are typically around the mid-60% range. So, no real concern for those participating in the premium space. But, for the video industry as a whole, viewability is a concern. Therefore, as consumers become less screen-centric and venture freely to the most immersive video experiences, advertisers will find that mobile video is one medium that aligns well with typical brand KPIs.. Cross Screen Audience Measurement Unlocks Budgets No conversation about where digital video is going would be complete without mention of the industry’s effort to find a common audience currency that allows advertisers to apply the same standards to digital as their beloved TV ratings. Thankfully, Nielsen, comScore and others are
  • 59. helping the digital world look at video in a similar fashion. While there has been some resistance in our industry to get on board, that thinking is shor- sighted. The sooner we accept that the fastest way to get to the large TV budgets is by speaking the language of the most proven branding medium, the better off everyone selling digital video will be. Companies in the digital video arena must embrace this agnostic reality and help move the industry forward. Consumers and advertisers are changing their screen specific mindsets and pretty soon we will be just talking about video --and not TV, desktop video or mobile video. Babelfish Articles May 2014 – July 2014 20-7-14 Page 59 Does Cheap Online Video Trump Text? by Roger Martin | 12:00 PM July 4, 2014 TED’s clever Chris Anderson came to speak with the Skoll Foundation board and pointed out that it would take an individual an entire year to give 500 speeches to live audiences of 100 people each in order to reach an audience across the country of 50,000. With TED, though, a good talk can reach that audience in 6 hours. That got me thinking about the dominant technology for influence or persuasion throughout history. Until about 500 years ago the dominant technology was oration — and arguably a particular form of it: compelling storytelling. But it was a distribution-challenged technology. The person with both a desire to persuade and a persuasive idea had to be physically present with the audience and there was no amplification. So the audience was small, limiting the effectiveness of the technology of the day in persuading large numbers of people. The most powerful adaptation of that technology was to have a sufficiently persuasive story that someone would be willing to invest in the labor required to hand-transcribe your words and then use those transcribed words to propagate your story orally to small groups. The most successful such app in the world was the Bible. Gutenberg changed all of that. In the middle of the 15th century, he created a breakthrough technology for the distribution of persuasion: the printing press. That produced a cost-effective way of capturing a persuasive argument in print, making many copies of it and distributing it far and wide. Books became the dominant form of persuasive technology and sister products like newspapers and magazines used the same fundamental persuasion technology: formulate your argument in prose, typeset it, print numerous copies inexpensively, and distribute them broadly. Arguably that remained the dominant persuasive technology for half a millennium. And because it was so dominant, the general way to think about it (including the way I thought about it until I listened to Chris Anderson) is that it is simply a superior technology. Hamlet on stage at Stratford is great but in influence it simply pales in comparison to the Penguin version of Hamlet distributed across the globe. But with sober second thought, I now see that the Penguin version was not so awesomely superior. It was superior in exactly one respect: it was an inexpensive way to distribute the content far more broadly. It was disadvantaged in two important ways. First, it just isn’t as persuasive as the audiovisual version. For a given individual, Hamlet, the book, just doesn’t match Hamlet at Stratford. Why? We humans only have been exposed to persuasion by prose for 500 years. Evolutionarily, print argumentation is still a very new technology and our brains seem to like the old technology better. Second, the printed book is pretty darn inflexible. Once the book is written, it takes a lot of effort to change it — and the existing book or magazine article or newspaper column never changes. You
  • 60. can do a new edition but that takes a long time. If you want to change an oral persuasion, just change the words and fire away. So Gutenberg offered the world a gigantic tradeoff: sacrifice persuasion effectiveness and flexibility, and I will give you distribution. The world accepted the bargain and lived happily for 500 years. Then in the early 20th century came the movies, which were very primitive, but oh how people loved them – even without any words in their first manifestation. The visuals were compelling. Then words came, and then color, and patrons flocked to the medium. In the Heat of the Night and Guess Who’s Coming to Dinner persuaded powerfully. Movies’ distribution economics were an improvement: unlike plays, they could be distributed broadly without the actors present. But the infrastructure was pretty onerous. You had to have a movie theater and fixed times resulting in a non-trivial penalty in time, inconvenience, and out-of-pocket cost to the audience you hoped to persuade. Still the medium grew like crazy and Babelfish Articles May 2014 – July 2014 20-7-14 Page 60 produced many great fortunes and beloved stars. That was merely the opening salvo in the takeover of a new technology. When the Internet enabled cheap, ubiquitous, and utterly flexible distribution, the world got YouTube and TED Talks. Persuasion attained virtually infinite reach, costless to the recipient — not only in out-of-pocket costs but also in convenience of time and place. But best of all — by far — the Internet uses the evolutionarily preferred medium: audiovisual expression. TED Talks and YouTube are not new persuasion technologies. They are a new distribution system for a very old technology: visual oration. We now have an age-old winning persuasion technology combined with an unbeatable new distribution methodology. As someone who has dedicated untold hours to persuasion via the written word, this is a pretty unsettling storyline for me. Am I truly in the buggy-whip business? Maybe. But I will rationalize and assert that persuasion still requires compelling argumentation. The capability that I have been working on throughout my career — generating a compelling argument — remains important and substantially unchanged. But I may have to come to terms with the possibility that the book, the article, and even the blog post may all be persuasion technologies heading toward obsolescence. APAC leads mobile growth and innovation 10 June 2014 SHANGHAI: The Asia Pacific region now accounts for half of the world's mobile subscribers and will be one of the fastest growing and most innovative markets for the next five years or more a new report has said. According to Mobile Economy Asia Pacific 2014, from the GSMA which represents the interests of mobile operators worldwide, there were 1.7bn unique mobile subscribers in the Asia Pacific region at the end of 2013, accounting for half the global subscriber base. This figure is expected to grow by 5.5% a year (CAGR) until 2020, reaching 2.4bn; only Sub- Saharan African is expected to grow at a faster rate. The majority of Asia Pacific mobile subscribers are concentrated in four major markets – China, India, Japan and Indonesia – which together account for three quarters of the region's subscribers and over a third of the global subscriber base.
  • 61. There is also a huge diversity in the level of development in individual markets. Subscriber penetration was above 90% in Japan, for example, but less than 15% in Myanmar. The report described countries such as Australia, Japan, Singapore and South Korea as "digital pioneers" which were rolling out 4G capabilities. A country like India, on the other hand, was a "discoverer" market, where mobile operators were focused on building-out networks to rural areas and offering affordable mobile broadband services. The variety of markets across the region is a major factor in how it is developing, according to Anne Bouverot, director general of the GSMA. "Innovation in the region is happening at many levels, from leading the way in advanced super-fast mobile services in mature markets to providing essential services such as education, healthcare and banking in the developing world," she said. The report found rapid subscriber migration to 3G/4G mobile broadband networks across the Asia Pacific region, both in advanced and emerging markets. Just over a quarter of the 3.4bn mobile connections at the end of 2013 were 3G, while a mere 3% were 4G. But by 2020, these figures were forecast to rise to 34% and 28% respectively. South Korea has the world's most advanced 4G market with, uniquely, 100% cent of its population covered by 4G networks. And at the end of 2013, over half of all mobile connections there were running on 4G networks. Mobile operators in China were only awarded 4G licences in December 2013, and the GSMA projected that there would be almost 900m 4G mobile connections in the country by the end of 2020, up from around 100m in 2014. Babelfish Articles May 2014 – July 2014 20-7-14 Page 61 Don't Pack Up the Social War Room Just Yet By Jamie Tedford Tuesday, July 15, 2014 The term “war room” has entered the lexicon for social media marketers surrounding any and every large event that falls under the nation’s spotlight. The Super Bowl, the Academy Awards -- and most recently, The World Cup -- have become stages on which brands (Adidas and ESPN, to name a few) do their best dances, attempting to win over audiences with quick content and brilliant wit. These large events come and go. The war rooms follow. The games in Brazil end, and social media managers return to their desks and traditional workdays. While I appreciate the overwhelming sigh of relief that marketers experience when they’re able to put down the 24/7 radar and pick up the monthly content calendar, I see no reason to ever fully deflate the so-called “war room.” That being said, we can build a better one. Rather than a temporary high-alert system, the war room should be a steady living, breathing extension of all social media marketing efforts. While the World Cup may only occur every four years, every day has real-time moments that brands can own, as long as they’re on the lookout for them. A weather forecast for Texas shows thunderstorms in the area, the Red Sox have just pulled ahead of the Yankees in the bottom of the eighth, a certain contestant on “The Voice” is trending on Twitter -- these can all be highly localized content opportunities for brands to own. Sound time-consuming? It doesn’t have to be. If we’re going to have a 24/7 war room built into our strategy, let’s make sure it’s an efficient one. While it’s unrealistic, and frankly wasteful, to have individual social media managers monitoring dozens of potential data points for the sake of publishing content in real time, it’s relatively easy to carry out the same task with technology.
  • 62. We can build a smarter war room that employs data feeds to do the heavy lifting for us. I’m talking about a certain portion of our media efforts aligned to content that’s tied to real-time data -- be it sports scores, pop culture trends, or even your brand’s own organic content performance. Imagine a brand is launching a new “ultra-refreshing” summer flavor for its most popular soft drink. Using this model, this brand could run a campaign with national, pre-planned blanket messaging about said beverage alongside a real-time, hyperlocal campaign that promotes content to any city where the temperature rises above 85 degrees. It’s no World Cup, but it is content that’s both timely and resonant for users. Still, no algorithm will ever create beautiful pictures and great copy. Creative service teams will always play an integral part in social media success. While we can hand over the publishing reigns to automation, these teams must first and foremost create great content to have in the queue. By combining the art of content curation with the science of programmatic content publishing and ad buying, we can elevate the war room to be a more efficient and evergreen tool. The World Cup is over, but real-time content opportunities are here to stay. The only question is whether your social media command center is ready to make the most of them. Babelfish Articles May 2014 – July 2014 20-7-14 Page 62 Retargeting Is Flawed; the Future Is Pretargeting The Future Lies in Targeting Based on What We're About To Do, Not What We've Just Done By Tom Goodwin. Published on July 15, 2014. 0 There is no time in my life I am less likely to buy some white pants, a toaster or a flight to Los Angeles than after I've just bought these items, yet that's precisely the time I see ads for these products or services. These ghostly images stalk our internet journeys like shadows. While ineffective, these ads come to us by some of the most advanced technology there is. By some measures, they are the most appropriate ads to serve us; they can be the most noticeable, but they are also the most pointless. It's like an inaccurate watch -- knowing the engineering inside is impeccable doesn't help if it can't reliably tell the time. Retargeting is based on the past. The clumsiness of retargeting is well-documented and we're assured that teams of scientists are working away to improve the algorithms -- these are the new media buyers, planners and creatives of the performance marketing age. I have no doubt that retargeting will get better. When more and more behavioral data is overlaid with checkout data, credit card data and recommendation engines, we will soon see a new era of personalized advertising. We'll be shown ads for big-ticket items at precisely the right time, after we've been thinking about them for a predetermined period. We'll be shown ads for items that work perfectly with our new white trousers. Technology is moving so fast that soon both the ad placement and the advertisement itself will become automated. We'll see fully rendered completely personalized video ads based on real-time pricing, real-time availability, the weather and thousands of other data points. The art director and copywriter team of the future is the algorithm and processor. Nonetheless, the main problem with retargeting remains that it's based on the past. It's about reaching people who have bought items, who've accepted they need something, and who have started to act.
  • 63. Babelfish Articles May 2014 – July 2014 20-7-14 Page 63 From the past to the present Search focuses on the present. The value of search is predicated on its future vision; search is the only opportunity in advertising to address people at their moment of need, before they take any other action to quench it. We search at the start of the purchase funnel. Search will for this reason alone forever retain incredible value in the advertising mix -- the single best way to convert known interests into action. But search requires us to know that we need something. It takes effort; sometimes we need help and we don't know it or want it. Predictive ads are about the future. Search will soon be trumped by something mind-blowing -- what about converting needs we don't yet know we have? Predictive advertising: From the present to the future The digital ecosystem is an untapped mine of data for advertising, and our changing behaviors are making it even more so. The more we like posts on Facebook, accept location services, connect our address books, use our digital calendars and the more we share this information across devices, the more accurate the pictures of our lives become. When companies with incredible processing power overlay what we do, where we go and how long it takes -- both as individuals and collectively -- a rich new picture of what we do emerges. The world of predictive computing is upon us. We see a few early entrants -- we have Google Now predicting our journey to work and telling us to set off early if traffic blocks our normal route. Microsoft Cortana may see our upcoming flight to Sydney and offer relevant information like exchange rates and weather forecasts. And it's this value that changes everything. The current privacy debate is focused on privacy being lost -- the debate needs to move to privacy being exchanged. Facebook's recent decision to announce its new privacy terms but also to explain how consumer information would be used to make better advertising seems rather sensible. It seems like a value exchange. Aided by a degree of opting in, we will likely soon see a world of advertising experiences on another level -- the world of ads for products at the right time, the right place, with the right message all based on predictions about your needs at that time. It will be the coffee shop suggested when you have time and it's about to rain; the Taxi2 ridesharing app telling you someone else wants to go the same way as it thinks you do; the car garage that will repair the problem only your car knows it has; the train times when snow blocks your route to work; the meal special offer when your friends are close and your calendar is free. Future advertising will soon become a valuable offering of useful information at the right time and at the right place and in the right way. This contextually precise assistance, aided by a landscape of new connected wearable devices to provide better inputs and ways to convey information continuously, changes everything. Predictive advertising should be an incredible emerging world for brands to exploit. The technology is here, but what's stopping it is the huge cultural shift that needs to happen that will allow more comfort with sharing information. Predictive advertising comes from trust, and when we accept that privacy is a lost battle and decide to embrace this, then we can get something in return. The Internet of Things: When Digital and Physical Worlds Collide - Renee Jordan Published: July 15, 2014 at 1:45 AM PDT By Renee Jordan Recently a group of leading Internet and media experts gathered to discuss "The Internet of Things" and, more specifically, how digital technology is transforming the marketing and
  • 64. advertising industries. "Our goal was to engage in some rapid visioning amongst thought leaders around the opportunity inherent in the growing 'connectivity' of everyday objects and the benefits this can provide to consumers and innovators," said Innovation Loft CEO Howard Tiersky. Innovation Loft is a leading innovation consultancy, and the Internet of Things gathering was held at their new workshop facility in New York City. Various industry voices were represented in an evening of lively prognostication: David Brown, EVP of Meredith Xcelerated; Tom Touchet, CEO, City24/7; Steve Halloran, Founder and Managing Partner of Seismic; and Mikhail Damiani, CEO of Blue Bite. While the room was full of divergent views, one thing everyone could agree on was that it's time to figure out what opportunities the Internet of Things brings to the media business. As advertising and marketing leaders, we don't want to find ourselves flat-footed or left out of the evolution of the consumer experience. As the host of the evening, I made the introductory argument that the Internet of Things is simply a place where digital and physical worlds collide. And the futurists are seeing big dollars in this collision: Recently, IT research agency IDC pegged the Internet of Things market to hit $7.1 trillion by 2020. Cisco has had a jump start on brand ownership of this virtual-meets-physical world, with commercials showing how their systems are connecting " the Internet of Everything" (their term) to reshape our day-to-day experiences. Cisco's commercials show how the Internet of Everything is connecting ambulance rides with real-time doctor availability at nearby hospitals and bringing the once-static visit to the hardware store to life with dynamic supply-chain data. Another example of digital and physical colliding is the emergence of companies like Blue Bite, a key player in the mobile-marketing world. Blue Bite uses proprietary technology to connect smartphone users with physical touch-points, such as digital ads running on out-of-home platforms. Since founding in 2007, Blue Bite has activated mobile/out-of-home campaigns for clients like Samsung, Toyota and Gap. Some of the most exciting, life altering rollouts of the Internet of Things are taking place in our homes and cars. On the home front, the Google Nest app promises to bring the house alive by connecting smartphones with thermostats and smoke alarms. Google's acquisition of Nest for the mega sum of $3.2 billion is evidence that the connected home is imminent. Apple is also making serious investments in apps that enliven the domestic space. Last month, the Financial Times reported that Apple is readying new software to turn iPhones into remote controls for lights, security systems and other household appliances as part of a move into… that's right, the Internet of Things. A key takeaway from the 2014 Consumer Electronics Show was that apps making cars, homes, and wearables "smart" is our future. "There's a reason we're seeing Google and Apple take an interest in cars," Clear Channel's Josh Kruter noted at the Innovation Loft. "Drivers are not supposed to be checking mobile phones while driving; Google and Apple know this to be a business opportunity and are integrating mobile into car dashboards to eliminate hand-held distraction and safety risks, yet still providing consumers a seamless connected experience." Google Now delivers real-time, highly personalized information about traffic patterns, sports scores and weather. Just imagine what this looks like on a car dashboard. Apps like Dash promise to turn any car into a "smart car" by allowing consumers to connect cars to phones. Enhanced performance, cost savings, and my favorite catchphrase -- "social driving" -- are just a few of the promises made by Dash. Apple for its part has developed CarPlay, billed as "the best iPhone experience on wheels." Steering the conversation to the issue of privacy, David Brown, EVP of Meredith Xcelerated Marketing, said some of the world's largest brands are looking for ways to connect media actions to people and deliver personalized advertising. "What is the cost of personalization?" Brown Babelfish Articles May 2014 – July 2014 20-7-14 Page 64
  • 65. asked. "And what is the appetite for it?" Big brands have already ventured far into the world of personalization, with vending machines that include facial recognition technology. Why? So these machines can recommend personalized products (think recipes catered specifically to busy mothers), having analyzed their faces. Brown said, "Clients have to share their data in exchange for personalized services." Thinking equally big, Tom Touchet, CEO of City24/7, has been working on the Internet of Things for seven years in collaboration with Cisco IBSG and New York City. Through the use of 250 Smart Screens in each of the five boroughs that incorporate touch, voice and audio technology, hyper-local information can be delivered to urban dwellers in real-time, making cities like New York truly smart and improving quality of life. According to Touchet, the City24/7 network will grow much larger than its initial 250 locations and expand through other agencies in an effort to provide valuable insights to governments, people, and businesses. No matter how you slice it, the Innovation Loft discussion demonstrated that the Internet of Things is no longer a pipedream. For better or worse -- and the consensus lies on the side of betterment - - the connected world has arrived for big brands and private citizens alike. For those of us in out-of- home media, the Internet of Things means our industry will be an integral part of the space Babelfish Articles May 2014 – July 2014 20-7-14 Page 65 where the physical and digital worlds collide. How the Internet of Things and Google Nest are Changing Marketing (Members-Only Report) May 12, 2014 at 04:55 PM GMT By Jack Myers 2014 has started with an inescapable focus on a technology trend labeled the 'Internet of Things' (IoT). An ambiguous term, it nonetheless describes a number of diverse technological developments with the long-term potential to interconnect and change the way we as consumers live with our devices and the way marketers communicate. From cars that can identify a driver and match individual environment preferences, to smart homes that learn our behavior and adjust accordingly, the promise of the Internet of Things is as great as the hype that precedes it. Cisco estimates that the IoT will bloom to involve "50 billion connected things in the world, with trillions of connections among them." By various measures, the IoT is currently generating more than $1 trillion in revenues and this hyper-connected future could represent a $14 trillion annual business within ten years. Cisco CEO John Chambers is calling his company's innovations the Internet of Everything (IoE). While Cisco isn't planning on selling directly to consumers, they are planning on indirectly impacting their lives through smarter power grids, personalized retail experiences, improved industrial efficiency, and the ability to control the infrastructure of an entire building through a single smartphone application. During his CES keynote address, Chambers promised that IoE will be "bigger than anything that's ever been done in high tech." Dissecting the Internet of Things The IoT is a network of real-world objects that access the Internet and their own internal sensors to improve operations. The information networks that arise from so many interconnected devices hold the potential to disrupt the many business sectors that have come to rely on those very connections. While essential everyday devices such as tablets, smartphones and video game consoles are connected via wireless networks, most others are not, at least in the widespread sense required by a hyper-connected Internet of Things. In the first weeks of 2014, however, the trend is stirring. At CES, the IoT was high on the agenda, as industry analysts worked feverishly to put together the pieces of a puzzle that has barely been removed from its box. 2014 will be the year of the Internet of Things and IoT promises to be at the forefront at next January's CES. Less than one week after
  • 66. CES, Google acquired Nest Labs for the substantial price of $3.2 billion. (See more on Google's Nest acquisition below.) The company has two products, one a smart thermostat with the ability to learn your schedule and adjust the temperature accordingly; the other a smoke alarm that feeds information to a mobile device, reminding you to change the batteries or alter settings. More importantly, the two devices can communicate with one another to improve performance. The smoke detector, for example, may detect high levels of carbon monoxide and prompt the thermostat to turn off possible sources. In this small example we see both the potential and current limited scale of the IoT. At home, at work, and everywhere we move in-between, connected devices could be at work, reacting to location, behavior, time of day and thousands of other inputs to improve our lives. This is why Google has moved to develop a core of talent in the field, and why executives in every organization must be aware of the implications of IoT to their business. The 2002 film Minority Report presents a world where technology has taken over. Enter a store and you are automatically greeted by name, reminded of the last item that you purchased, and a new product is suggested based on your earlier preferences. The movie was set in 2054, and yet, in 2014 we are not far from making the film a reality. Apple's iBeacon is an indoor geo-location application that allows stores to track user preferences and provide users with customized directions and shopping guidance. While Apple has downplayed the importance of the iBeacon (it was too late to make a big announcement for the 2013-2014 holiday rush), it's currently available in an estimated 200 million iOS devices. iBeacon is the implementation of the Bluetooth Low Energy (BLE) profile, which triggers precise micro-location events in iOS7 apps. A BLE enabled iPhone will be able to receive exact location signals from an iBeacon, enabling a retailer to direct you not only to its front doors, but down the aisles, and straight to the shelf with the exact sale item. Combine iBeacon with BLE and new data gathering software, and suddenly you have transformed retail from a mass-consumer space into everybody's personal shopper. As the retail industry continues to be a big predictor of consumer wants, the ability of The Internet of Things is adapting and growing through increasingly targeted applications. Smartphones and their applications have forced retailers to keep prices competitive and websites up to date. A recent Pew Internet study showed that 50 percent of adult cell phone owners use their device to help with in-store purchasing decisions. Smartphones allow us direct access to both the in-store and the online retail worlds. If a competitor is offering a better price, then we can not only find the product on our phone, but we can also immediately purchase it. In the future world of IoT, the physical store is embedded with sensory technology that can connect to any mobile device. What if this store's technology realized that many people in the store are browsing but not buying? With this immediate data the store's embedded technology could send out a flash e-mail that offers a discounted offer. Through IoT, manufacturers can embed microscopic chips in apparel that emit a signal intended to be read by sensors at retail locations, identifying the fashion preferences of consumers and communicating with sales people and shoppers as they enter the store or walk past a window. Chips can be in CPG products, alerting consumers when its use-date has expired or when it needs to be replaced. Auto manufacturers are already applying the early elements of connected devices to vehicles, think of EZ Pass as a very early application. Automatic braking systems in high-end cars and navigation systems that factor in heavy traffic reports are just the beginning. Once a car is fully hooked up to real-time data, it has the ability to use that information in almost any frustrating driving situation imaginable. Parking becomes a non-issue as every free spot within a mile or two is presented to the driver with directions and ETA, while traffic congestion becomes far simpler to avoid as every vehicle relays its position and prevailing delays to the cloud, allowing navigation systems to suggest an optimized route. Smarter routes could also be suggested as a driver's regular habits are learned, factoring in traffic and weather conditions before we even leave the house and relaying the recommendation by an alert pushed through a mobile device. Babelfish Articles May 2014 – July 2014 20-7-14 Page 66
  • 67. Off the roads and into the shopping malls, retailers and marketers will be challenged again and again by IoT. Still wading through the repercussions of digital disruptions to entertainment media and its subsequent impact on advertising, executives will need to activate strategies to loop together virtual and physical worlds, and the inevitable integration of traditional media campaigns with direct consumer communications, shopper marketing, events and experiential marketing. Smartphones will be at the center of this transition. This presents an evolution for loyalty programs, which will need to spring into action long before the focus directly on pushing consumers to the cash register. Today's customer data collection is just the tip of the iceberg as a detailed personal record is built from the almost infinite number of apps and social networks and the ability to communicate that data directly from mobile devices directly to retailers, manufacturers, loyalty clubs, preferred cause-related organizations, approved partners and, yes, the government. Recent security lapses in retail data storage centers resulting in the release of the credit card information from millions of credit cards is just one of many challenging new realities confronting business, government and society. The power of Internet-driven technologies has made our universe smaller. In order to survive in a shrinking world, companies must ensure that, in the words of Cisco CEO Chambers, they, "get the right data to the right device at the right time to the right person or machine to be able to make the right decision." Babelfish Articles May 2014 – July 2014 20-7-14 Page 67 Internet of Things: In its Infancy The Internet of Things will impact technological growth across multiple business, commerce and consumer sectors. As noted by Barry Shell in 1995, "the Internet, with its open, distributed structure, was designed to withstand a nuclear attack. If it can do that, it can withstand corporate America." The Internet of Things is not only withstanding corporate America, but it is changing its very infrastructure. New applications that know what the consumer wants and needs before they do are the wave of the future. Soon, consumers will become walking billboards, made so by their continuous connection to The Internet of Things through mobile devices and sensory embedded technologies. By 2020 an estimated 26 Billion connected devices will deliver a continuous stream of data to awaiting cloud-based processors that will instantly compute the intelligence and, in a continuous feedback loop, engage connected devices and communicate actions, offers, insights and alerts. Why Google Shelled Out For Nest Energy efficiency is a business opportunity ripe for improvement, as home energy solutions learn our environmental preferences, factor in current weather conditions and our location, and then adjust usage accordingly. Energy systems will recognize the mobile location of all household members and manage electrical and energy use and output accordingly. New energy management systems will optimize usage and costs. Prior to Google's acquisition, few people had heard of Nest, not a surprise since Nest produces only two products: a home thermostat and a home fire detector. Despite this dearth of a product lineup, Google agreed to shell out $3.2 billion, which represents a 2000% return for the founders and original investors. What makes Nest such a hot commodity is the Internet of Things. Nest Labs CEO Tony Fadell told an interviewer last October that "we're just at the very cusp." Relating the IoT to the development of personal computers, he added "How long did it take to get to the 'Internet of computers'? There are so many layers of software and hardware to be built, and standards to be built, that I do believe it's a 10-year proposition, easily." Fadell left the security of a job at Apple to go all in on his particular version of the IoT and in doing so netted himself hundreds of millions.
  • 68. What's so special about Nest? Their lineup of smart thermostats and smart fire detectors allow a user to remotely set preferences for the interior of their home. Speak into your smart phone and turn down the heat. Leave the oven on and the Nest smoke detector will automatically shut it off. Fire? While calling the fire department, nest will shut down the electricity, gas, oil and other endangered systems while unlocking the door and communicating the cause and location of the fire to the arriving firemen. Google's betting that always-on machines will replace any and all human controls in the same way that bathrooms have automatic sinks and toilets. If you already have a Slingbox or activate your home DVR from your mobile device, you're already participating with the Internet of Things. There are some risks for Google but the acquisition of Nest signals that the company (in typical fashion) is looking at potential rewards first. They want to lead in the development and implementation (and of course profits from) the Internet of Things. From clocks to mixing bowls, clothes closets to pantries and refrigerators, from game rooms to bedrooms, from fish tank filters to lights and barbeque grills, from Google Glass to retailers' special offers, Nest represents Google's commitment to the multi-trillion-dollar Internet of Everything. Google's first step -- and it's a mammoth step -- involves creating the source code that will define a common connection for smart devices. The good news for the company is that Google wants to put computing literally everywhere -- from your kitchen sink to your tool shed -- and there's no other company today with the resources, skill set and consumer connections that is willing to risk assets and create long-term plans for building such a massive infrastructure. The acquisition of Nest represents both a strategic asset as well as a marketing plan. We can reasonably expect that future smart devices produced by Google will enter the market under the Nest or Nexus label. Nest/Nexus coffee machines, home appliances, hair dryers, home electronics, computers and other interconnected devices may become market leaders with the same speed as Android tablets and smartphones. Beyond the brand, however, Google will surely market the network: purchase a Nest/Nexus dishwasher and you can send it commands via your Android device. Log into Google+ and turn the lights on in your garage, activate the security system, view different rooms in your home, check whether you're out of milk and leave a message on the fridge. If Google can succeed at developing a brand-specific Internet of Everything, they'll enjoy as dominant a near-monopoly over this market as they do with search marketing. - See more at: http://www.mediabizbloggers.com/new-technologies-impacting-on-media/How-the- Internet-of-Things-and-Google-Nest-are-Changing-Marketing.html#sthash.Hrd6dIVB.dpuf Babelfish Articles May 2014 – July 2014 20-7-14 Page 68 Direct Mobile Commerce: Bypassing the Retailer by Chuck Martin, Mobile location has long been viewed as a key capability for reaching shopping consumers at more relevant places and times. Much of that activity has centered on targeting a mobile shopper in relation to a physical store, kind of geofencing 101. I’ve noticed that advancements in location technology are empowering manufacturers to more directly connect customers to products, essentially bypassing the influence of the retailer. One example is by the mobile coupon companies that allow shoppers to scan their grocery receipts after leaving the store and receive cash rebates directly from manufacturers.
  • 69. One of these companies (SnapSaves) was acquired by Groupon, another (Endorse) was bought by Dropbox and a third (Checkout 51) I wrote about here last week (Mobile Coupon Redemption AFTER the Shopping Trip). The blending of better technology with more information is allowing more precise matching of person to product. A few weeks back, I noticed another indicator of this trend when California-based Retailigence teamed up with digital advertising companies to match real-time ads to shoppers based on the location of product inventory. I’ve been following Retailigence for some time, since it tracks inventory information in more than 100,000 brick and mortar stores. This always struck me as a major component to complete the mobile path to purchase, since a mobile shopper led to a store to find the desired product out of stock can create a frustrating experience, at the very least. One company, Gigwalks, sends inventory checkers to stores to check on whether certain products are being properly displayed, as I wrote about here recently (A Mobile Army of Real-Time Inventory Checkers). But for massive inventory tracking, Retailigence just extended its system so that brands can directly link to customers who are near their products, with the expectation of increased sales. “Any form of ad or marketing or media should be a gateway to actual commerce,” Retailigence CEO Jeremy Geiger told me. “This is a bridge to the transaction.” The way it works is that a brand targets shoppers near a store that has the product in inventory and using real-time bidding, purchases all the mobile advertising available in that area. From 60% to 90% of the ad inventory is from mobile apps with the rest from mobile websites, according to Geiger. “At the store, we know the SKU level, location and store location and can correlate in-store level sales data, by hour, minute and second,” says Geiger. This direct connect between brand and consumer has huge potential implication for retailers and the future function of their physical facilities. “Brands haven’t had a direct touch to the customer,” says Geiger. “CPG companies are more forward looking. Brands want connections to the consumer and they’re using the retailer as a fulfilment center.” The long-time promise of increased efficiencies in the supply chain may be coming in the form of direct mobile commerce, more tightly between the consumer and the brand. Babelfish Articles May 2014 – July 2014 20-7-14 Page 69 The 10 futuristic gadgets that will change your world 18 hours ago July 14, 2014 12:21PM Could this one day become a reality? Smart gadgets are being built in labs that will change the way we live our lives. Source: Supplied FROM talking forks and smart clothes — the future of technology as seen through the eyes MIT Media Lab scientist David Rose is about making the computer personal.
  • 70. Decades after their invention, computers look roughly the same. Though smaller and more portable, we still click, type and stare at flat screens. But not for long, Rose argues in his new book, “Enchanted Objects: Design, Human Desire, and the internet of Things” (Scribner), which supplies his own research to argue that people desire direct interaction with technology. “Screens fall short because they don’t improve our relationship with computing,” he writes. “The devices are passive, without personality. The machine sits on idle waiting for your orders.” Rose believes that we really want magical objects straight out of the Harry Potter universe: “flying carpets, talking mirrors, protective cloaks, animated brooms.” But in the meantime, we’ll have to settle for talking garbage cans and weather-forecasting umbrellas — both of which (plus eight others listed here) are already at least in prototype phases, if not on already on the consumer market: Babelfish Articles May 2014 – July 2014 20-7-14 Page 70 1. The umbrella that forecasts weather There’s going to be rain, man. Source: Supplied A piece of furniture that speaks to us — that’s the definition of Rose’s vision for the future with enchanted objects. The Ambient Umbrella communicates with its owner through a series of patterned blue lights that indicate if the forecast calls for rain. Armed with your ZIP code, a wireless receiver at the handle of the umbrella connects to AccuWeather and then glows and pulses a gentle blue light if the weather looks frightful. This battery-powered umbrella is on the market — but it’s a lot more than the cheap $3 on every street corner. This one will run you $125. 2. The home that transforms at your command
  • 71. From urban closet to multifunctional apartment at the wave of your hand. Source: Supplied Two-hundred square feet seems impossibly small, even by New York standards — but a new MIT-designed micro-apartment called CityHome can transform a 15-by-15 space into an exercise space, lounge, study, kitchen, and sleeping area, hopes to change all that. The apartment is controlled by wall-mounted devices that resemble a clock. Just pick a time of day and the room morphs into the space you want. For example: “Once out of bed, his room moves into exercise mode: The bed lifts away into the ceiling, the floor space clears, and a full-wall, live video projection of a yoga studio starts. “When he wants to study, a desk descends from the ceiling, the lights brighten and the drapes close. If he has friends coming over, the space clears out for a chairs and a cocktail table. At night, the bed emerges.” Though not currently on the market, CityHome is currently seeking funding and hopes to enter the market soon, according to its website. Babelfish Articles May 2014 – July 2014 20-7-14 Page 71 3. The bin that orders groceries
  • 72. It sounds creepy but this bin could save you that dreaded weekend supermarket trip Source: Supplied Another prototype developed by Rose and colleagues, this piece of “ambient furniture” makes for some magical garbage. The Amazon Trash can has a tiny camera and a bar code scanner that records everything you throw away — from household cleaning supplies to milk cartons — and sends the information to Amazon.com, where it is immediately reordered and shipped to you. No more grocery lists. A second prototype that is being developed comments on your eating habits and grocery picks with choice statements like: “Third box of Oreos this week?” or “Microbrew, all right!” or “Blueberry juice, loaded with antioxidants.” Babelfish Articles May 2014 – July 2014 20-7-14 Page 72 4. Know when someone is looking at your picture
  • 73. Babelfish Articles May 2014 – July 2014 20-7-14 Page 73 Self esteem and egos can be boosted with this frame Source: Supplied An example of “reciprocal presence,” the LumiTouch picture frame enables the feeling of closeness, even for those continents apart. Inspired by long-distance relationships, it comes with two linked frames. When one person is near the frame, the background light of the corresponding frame glows. When one user touches the frame, it lights up in the area where the other user touched it. The colour shifts in response to how hard and how long you grip the frame. A similar product is the Like-a-Hug jacket, developed by MIT’s Melissa Chow. This puffy vest inflates every time someone “likes” us on Facebook — whether we post a picture of our babies, a status update about the food we’re currently eating or political rant. This, the designer says, allows us “to feel the warmth, encouragement, support or love that we feel when we receive hugs.” The Like-A-Hug jacket is not for sale — but Rose envisions other examples of this haptic, or touch-based, technology might one day be: a phone that gets heavier as your voicemail messages pile up, a shoe that nudges your feet to walk in a specific direction or a wallet that gets harder to open once you approach a spending limit. 5. A bike that pedals for you
  • 74. You may be sneered at by other cyclists but you’ll be laughing when it comes to hills Source: Supplied The Copenhagen Wheel, announced at the 2009 Copenhagen Conference on Climate Change and initially developed in an MIT lab as a research project, contains a motor that transforms a normal bike into a hybrid electric vehicle. The device consists of a motor and battery pack that snaps onto the back of the bike. As you pedal, the wheel captures excess energy when going downhill or braking and then helps propel you up steeper inclines or harder terrains. The wheel can also connect to the internet, using it to record speed and distance travelled, finding friends throughout the city, inspecting air quality and even notifying yu if the bike starts to move when you’re not in the seat. In the mood to use up more calories? Using your smartphone, you can also vary the level of powered assist. This reinvented wheel, listed for $799, is available for pre-order and will be out by end of this year. Babelfish Articles May 2014 – July 2014 20-7-14 Page 74 6. The camera that records your entire life
  • 75. Babelfish Articles May 2014 – July 2014 20-7-14 Page 75 What’s that? I can re-watch my commute? Yay! Source: Supplied The slogan — “a new kind of photographic memory” — says it all. This pedometer-sized camera called the Narrative Clip attaches to a jacket or shirt or from a necklace and records high-resolution geo-tagged images every 30 seconds without prompting. You can now track every moment of your day. “Imagine what you’ll learn, what you’ll remember,” Rose writes. “Who was that guy I met at the airport in Singapore? What was that delicious dish we shared sometime around September of 2013? If you record long enough, you will end up with a visual record of (the rest of) your life.” But constant self-monitoring comes at a cost. The Narrative Clip comes with a subscription service — and at $279 per year, you better be making some worthwhile memories. 7. The onesie that monitors your baby
  • 76. Paranoid parents need no longer check the crib every 30 seconds Source: Supplied Babelfish Articles May 2014 – July 2014 20-7-14 Page 76 Hi-tech helicopter parent — this one’s for you. The Mimo Baby-Shirt measures infant respiration, skin temperature, body position, sleep patterns and activity levels. The organic (of course) cotton onesie is fitted with machine-washable sensors that can be monitored in real-time through your home’s Wi-Fi network. It also includes a microphone, so that you can stream your baby’s sound to your smartphone and the accompanying app allows you to crunch analytics about your baby’s sleep patterns. Originally marketed to medical device development companies, they had a direct-to-consumer eureka moment when parents began contacting them to use their sensors, and, according to their website, they “haven’t looked back since.” For $299 — a package that includes three onesies that come in only one size for up infants up to three months — you can pick one of these at your local Babies “R” Us. 8. A coffee table that eavesdrops
  • 77. Babelfish Articles May 2014 – July 2014 20-7-14 Page 77 This coffee table is no mug Source: Supplied Imagine sitting with a friend over coffee and telling her about your recent trip to Italy. Voila! Pictures of the trip suddenly emerge under your mugs. When you mention the delicious gelato you tasted near the Pantheon, the corresponding picture flashes on the table as you speak. Billed as an “instant photo album,” the Facebook Coffee Table uses real-time speech analysis to pick up keywords from your conversation to pull up relevant Facebook feed photos. Rose is currently finetuning the design for a major hotel chain to function as a self-service concierge. The hotel table will feature nearby events, restaurant suggestions and displays about traffic and weather. 9. The house that tracks your kids
  • 78. Babelfish Articles May 2014 – July 2014 20-7-14 Page 78 Google knows where you are. Source: Supplied The “telepathic” Google Latitude Doorbell, another product developed by Rose and colleagues, lets you know where your family members are and when they are approaching home. The data about each family member’s whereabouts come from Google Latitude — transmitted from a smart device — but is communicated only as ambient doorbell chimes, a unique one for each person. This has a pretty adorable origin story. Rose came up with the idea by merging the sound effects in “Peter and the Wolf” (a song for each character) and the Harry Potter series’ Weasley family clock, a magical device that keeps tabs on each child. 10. The fork that helps you lose weight Cutlery that tells you when to stop eating? Fork that. Source: Supplied
  • 79. Introduced at the Consumer Electronics Show in 2013, Hapifork made the jump from MIT research project to consumer household item in an impressively short amount of time. Perhaps it’s because we all want to lose weight — but we want someone or something else to do the hard work for you. The $100, chunky fork, which comes in five colours, alerts you with a gentle vibration when you are eating too quickly. It also measures, using the tines of the fork, how long it took to eat your meal, the amount of “fork servings” taken per minute, and the time between servings. All this information is uploaded — more self-monitoring data — for your own enjoyment or horror, depending on how you eat. Rose says this is an impressive start, but in within the next five years, he anticipates something more draconian: “Imagine an actual tooth replacement that responds to chewing action and is able to sense texture, temperature and chemical content of food and drink,” Rose writes. “In dire circumstances, it magnetically clamps onto the tooth above so you cannot continue to eat.” Babelfish Articles May 2014 – July 2014 20-7-14 Page 79 Great Customer Experiences Ready to Apply July 14, 2014 A lot has been said and speculated about user experience but it is still a mystery that many top, senior and
  • 80. mid-managers don’t take it seriously endangering their companies of a bright future due to their lack of understanding. Matt Watkinson in his book “The Ten Principles Behind Great Customer Experiences” says “The customer experience is the quality aspect of any interaction that an individual has with the business, its products or services at any point in time.” Is worth to remember user experience is not limited when the customer purchasing the product or service, and on the use of it. In reality it starts when the user is first exposed to the product or service and goes on until the customer does not need the product or service anymore. It involves any interaction with the brand, product or service. Babelfish Articles May 2014 – July 2014 20-7-14 Page 80 Does it ring any bells now how important User Experience is? The most successful companies of our days such as Google, Facebook, Twitter, Mercedes, Audi and BWV cars, etc. They all understand that every interaction with the customer have to be taken into account and they deliver outstanding products or services because they care to make those interactions as pleasant and stress free as possible to the customers. As customers we usually respond with appreciation when business seems to care. If you don’t believe me, think about any good or great experience you had when intreating with a service or product that has shown small details of appreciation for your business; when they present you with a pleasant experience that you still remember and whenever possible would like to experience again. All of us have had some, even if just once in a lifetime. Wasn’t that great? Wasn’t something you would like to share with others and would come back for more? If you remember a great experience you had with a product or service, there you have the answer of how important the issue is. Matt Watkinson’s book is an excellent resource for those who wish to understand better how great customer experiences are made and learn how to create it for your customers. Here are a summary of Watkinson’s ten principles of great customer experiences: 1. Strongly reflect the customer’s identity - our behaviours are guided from our beliefs and values. (Should also be used for sales, brand awareness and marketing). 2. Satisfy our higher objectives - We all have primarily objectives or goals that we are aware of and the hidden ones that in many cases we don’t even know they exist. The 5 whys technique helps to uncover our customer’s explicit and hidden objectives that are crucial to determine what are the real reasons why they choose us. (Should also be used for sales, brand awareness and marketing). 3. Leave nothing to chance - No detail is too small to be unnoticed and all the customer interactions need to be planned in order to be right. 4. Set and then meet expectations - know what our customers expect from our products and services and meet those expectations is what make customer have a great experiences with our products or services. (Should also be used for sales, brand awareness and marketing). 5. Are effortless - One of the great pleasures we have is when we can accomplish what we want with a product or service with the minimum effort possible. Like Steve Krug’s book say, “Don’t make me think,” it very truth in Watkinson’s principle. (Should also be used for sales, brand awareness and marketing). 6. Are stress free - Life is full of stress, such as the traffic conditions, million of choices to make everyday, lack of time, etc. The products and services that make our interaction stress free, smooth and easy, are in itself pleasant and the ones we enjoy interacting with.
  • 81. 7. Indulge the senses - Customer experiences which are pleasant to do and activate our senses in a good way are the ones we want to have more and more. (Should also be used for sales, brand awareness and marketing). 8. Are socially engaging - word of mouth always work best than advertisement. That should tell us that when our social network accept and indulge a service or product, even if we don’t know it we are very likely to use it too. Keep good relationship with customers is always positive and should be done whenever possible. (Should also be used for sales, brand awareness and marketing). 9. Put the customer in control - Nobody likes to be forced to do anything. Put the customers in control on how, where and when they want to use our product or service is to provide a great user experience. 10. Consider the emotions - No matter what people say about the rationale of customer choices such as the ones based on price. If price wins is only because the product or service does not connect with your emotions in anyway. Nothing beat a delightful and enjoyable customer experience. When that happens we always come back for more whenever possible. (Should also be used for sales, brand awareness and marketing). These are just a very basic summary of the what great customer experiences are all about. People used to think User Experience can only be used on the technology field, for program architecture and designers, which is far from the truth. It can be used for sales, marketing, brand awareness, managing risks, testing, etc. The 10 points Watkinson describes in his book cover the entire aspects of user experience as a field and also gives a holistic view to let up to the reader decide what and where to use the information. The beauty of User Experience as a field for me, is that we can pick the most important points that apply to our specific needs within our field of expertise and apply the knowledge to excel in whatever we do. Just keep I'm mind that as long as we have the User Experience principles to delight out customers in the top of our minds, all the rest will follow into place. That is a fact! In the next article I will be getting into the details of how sales, marketing and brand awareness can benefit for these principles. Babelfish Articles May 2014 – July 2014 20-7-14 Page 81 Moneyball 2.0 by Justin Evans, July 11, 2014, 10:43 AM Welcome to a world of multiple exchanges, complex algorithms, confusing jargon, aggressive middlemen, and tuned-out clients. Sound familiar? Well, it’s not ad tech. It’s Wall Street. The eerie parallels between today’s Wall Street and the increasingly automated world of advertising are unmistakable in Michael Lewis’ new book, “Flash Boys.” (Lewis has shed indirect light on our industry before with his 2003 book “Moneyball,” which became the the hero narrative for quants.) In “Flash Boys” a group of entrepreneurs take on the big banks and high-frequency trading firms, because those players are using opaque private stock exchanges to rip off unsuspecting clients. This contemporary high-tech Wall Street is, on the surface, very similar to programmatic ad tech. Clients entrust professionals with their money; the professionals make trades in a complicated system of bidding alorithms and exchanges; and a host of middlemen and technology people
  • 82. manage the handoffs between buyer and seller. Sounds a lot like marketers putting ads on digital publishers through a programmatic system. Given the parallels, players and would-be players in programmatic should sit up and pay attention to “Flash Boys” -- if for no other reason than to avoid Wall Street’s mistakes. Here are the similarities between “flash boys” and programmatic advertising: Math Men. Like advertising, Lewis’ Wall Street, on the surface, is dominated by client guys with expense accounts. Underneath is a class of mathematicians, software programmers and IT guys, who are building the plumbing and the logic that makes the whole financial system work. Murk. However, a market built by Math Men has major clarity issues. Just as in programmatic technology, the plumbing of the new Wall Street is complex and hard to understand. And according to Lewis’ descriptions of clueless salesmen and clients, Wall Streeters would rather live in a world they don’t fully understand than look stupid by asking questions. Agency problems. Murk breeds a disease that’s best described by microeconomics: agency problems. The textbook definition of an agency problem is when a “principal” hires an “agent” to act in the principal’s best interests; but the agent’s interest may conflict with the principal’s. Agency problems thrive in murk. When the principal can’t understand what the hell the agent is talking about, the principal is going to have trouble applying his or her judgment. The tragedy of murk and agency problems is that they slow down the adoption of a system that can actually benefit everybody. Don’t trust your agent? Now a principal will become mistrustful, and simply avoid the new system. Babelfish Articles May 2014 – July 2014 20-7-14 Page 82 What Programmatic Advertising Can Learn from “Flash Boys” Many of Michael Lewis’ books view exotic worlds through the eyes of a naive hero figure. In “Moneyball” it’s Oakland Athletics baseball coach Billy Beane (played by Brad Pitt in the movie). In “Flash Boys” it’s Brad Fukuyama, a trader for Royal Bank of Canada. In their small ways, both heroes took on an established system and won. I would argue that any of us entering the deep dark woods of programmatic should emulate this Michael Lewis hero archetype in order to be the best champions of our businesses in a complex world of advertising technology. Heroes are ordinary. Fukuyama and Beane didn’t know a damn thing about the exotic worlds of high-frequency trading or statistics (respectively) when their narratives begin. They are not powerful people in their industry. They do not even have especially distinguished careers. Yet they change the system. Translation to advertising: Advanced degrees are not required to take command of your programmatic strategy. Heroes ask stupid questions that are actually smart. “Flash Boys”’ most compelling passages show how Fukuyama and his companions chip away at the secrets of high-frequency traders. They do it by asking questions, and by demanding answers they can understand. One is shocked by how many people they have to ask, how many times they have to ask, and how much balderdash they have to tolerate, to get real answers. Translation to advertising: Gird your loins for condescending answers to your common-sense questions, but stay strong. Heroes are not afraid to demand change. Once the heroes of “Flash Boys” truly understand the system, they are able to create a solution that works for them. (Fukuyama has started an alternative exchange called IEX in response to the experiences covered by “Flash Boys.”) Translation to advertising: The programmatic ecosystem is in its early days; the way it works can be shaped by clients with clear ideas and demands.
  • 83. I am in no way suggesting that the world of programmatic is a treacherous place in need of reform. Quite the contrary; I believe that programmatic advertising offers astonishing efficiencies for marketers, and those efficiencies can be used to benefit those marketers’ products and customers, employees and shareholders. What I am suggesting is that the ecosystem of programmatic advertising will benefit from a plain- English approach. Businesspeople -- marketers and media folk alike -- can, and should, still speak Business even after they cross the border into Technology. Math-man dazzle and murky terms should not be tolerated. Agency costs can be avoided; efficiencies can be gained; and, as we build the ecosystem we deserve, we can all be heroes. The Importance of Encouraging Children to Shoot for the Moon Babelfish Articles May 2014 – July 2014 20-7-14 Page 83 June 26, 2014 Children are sponges, they absorb what we say and do. Our actions and words can greatly influence and inspire their young minds, and ultimately their future. Knowing this, we should always strive to make a positive impact. This doesn’t mean we have to censor ourselves; but instead lead by example to help them reach their full potential. I recently heard a wonderful story about how one of Virgin Galactic’s college interns discovered her passion for space. In 2004, when Barbara Schloss was 11 years old, her ‘space geek’ parents took her and her brother into California’s Mojave Desert to watch SpaceShipOne attempt to win the XPRIZE. They drove from Los Angeles, bunked down overnight at a motel, and woke up just before dawn to set up for the event. Bundled under multiple blankets to combat the cold desert morning, Barbara and her family witnessed the historic space flight. She explained: “I could hardly contain my excitement. I remember watching WhiteKnightOne take off and then waiting, for what felt like forever, for SpaceShipOne to separate and fire its rocket engine.” Of course, that day SpaceShipOne reached space and entered the history books for being the first privately-funded spacecraft to carry astronauts to space, thereby winning the Ansari XPRIZE.
  • 84. By exposing her to the XPRIZE – a prize that encourages radical breakthroughs for the benefits of humanity – Barbara’s parents unknowingly sparked her life’s passion. Barbara claims to have enjoyed math and science since before she can remember, but on that day she set her sights on becoming an aerospace engineer. Today, Barbara is a student at the Massachusetts Institute of Technology (MIT) and interns at Virgin Galactic where, as a member of the Advanced Programs group, she works on the liquid propulsion system for LauncherOne – Virgin Galactic’s launch vehicle for small satellites. She said, “I still have WhiteKnightOne and SpaceShipOne painted on my closet at home, but working on the real thing is infinitely better.” Children are often told ‘you can’t do this,’ ‘you shouldn’t do that,’ and ‘that is out of your reach.’ Youth is an incredible thing; it spurs confidence, vitality, drive and a fresh outlook. When allowed to, children can be unstoppable; so let’s expose them to the opportunities and support they need to achieve the seemingly unachievable. I’ve always had a soft spot for dreamers – not those who waste their time thinking ‘what if’ but the ones who look to the sky and say ‘why can’t I shoot for the moon?’ Thank you, Barbara, for your work at Virgin Galactic. We’re proud to have you on the team! Good luck in your final year at MIT and for your future travels into space. Babelfish Articles May 2014 – July 2014 20-7-14 Page 84 Don't Give Away Your Magic For Free July 14, 2014 Dear Liz, I am so grateful to have found you and Human Workplace just when I needed a mojo boost, in the midst of a mid-career transition. I started a resume-writing and career coaching business about a year ago and I know I'm on my path. I started out writing resumes for friends and family members and now it's a full-time business for me. The good news is that I am overwhelmed with work. The bad news is that I have more non-paying clients than paying ones! The original friends and family members who got my first (free) resumes sent me THEIR friends and family members for more free career advice. Now I don't know how to get out of the jam I got myself into. Who knew I had so many friends? Old friends are coming out of the woodwork asking for free advice. I've had people I barely knew in seventh grade call me out of the blue and ask for free career help. In the meantime I sell my services at my usual prices ($500 for a resume, for instance) to people who find me through LinkedIn or our local Chamber of Commerce. I think my prices are reasonable but I get asked all the time "Don't you have a two hundred dollar resume service?" I am thinking about starting a Friends and Family price list to be used when people play the 'old friend' card. I know I have to stop working for free but I don't know how to say "We're not really close friends" without being rude. Thanks in advance for your help! Yours, Robin
  • 85. Babelfish Articles May 2014 – July 2014 20-7-14 Page 85 Dear Robin, Congratulations on starting your business! That is a huge accomplishment, and you have every right to be very proud of it. I am thrilled for you. You solved one big problem when you figured out how to market and sell your services rather than strictly donating them. That's a huge thing. The reward for solving a big problem is that you get another problem, and Problem Number Two has wasted no time in showing up. Now it's time for you to stop making exceptions to your pricing schedule for every person who asks you to. If you need good reasons to charge everyone except your immediate family members and your BFF the prices on your rate sheet, here are a few: 1. It is not fair to the people who hired you via LinkedIn or the Chamber for you to lower your prices or abandon them altogether. It's actually unethical to do that, because the people who hired you expect you to run your business like a business rather than a hobby. Why should anyone get for free what these trusting souls paid good money for? 2. The people who got free resumes will not value them or make use of your advice as seriously as the folks who paid for those things. If you keep track of the job-search results from each group, don't be surprised if the real customers make dramatic progress compared to the folks who took a free resume because somebody (you!) was giving them out. 3. If your brother-in-law Gus opened a dry cleaner, do you think he'd give free dry cleaning to people he sat in science class with in seventh grade? Of course not. Most people wouldn't dream of asking Gus for freebies because they knew him way back when. Gus wouldn't think of obliging a request like that. Why do you? 4. You challenge your clients to take steps and do things that they might regard as scary or awkward. That is part of their reinvention process. Can you honestly advise people to tell the truth about what they need if you aren't doing that yourself? 5. Friends are people who care about you and manifest their friendship in many ways. Your real friends won't ask for free services, because they want your business to succeed. Your business is part of you. Anyone who asks for free coaching or resume-writing on the basis of friendship with you is not a friend of yours, period. Pick a date - August first is a good, solid choice and it's right around the corner - and update your price list on that date. Get some postcards with your standard services and pricing for each service printed on them, or print the prices for your most popular services on the backs of your business cards. When you run into Old What's-Her-Name from kindergarten while you're grocery-shopping one day and she asks you for free career coaching, you'll be ready. HER: Hi, Robin! It's me, Diane - remember? We went to Shadyside Kindergarten together. We used to make mud pies all the time. YOU: Wow! Hi, Diane. I'm flattered that you remember me. You have a good memory. DIANE: Well, I've seen you talking about careers at the library a couple of times. It's perfect that I ran into you today, because I just decided I need to go back to work when my youngest child starts first grade this fall.
  • 86. YOU: That sounds great. Here's my card. (Give her your business card.) Give me a call! DIANE: Oh - well. You wrote a great resume for my bridge partner Lois. Her cousin Vinny is a friend of your sister Ellen's ex-father-in-law's boss. Lois loved her resume and she said you wrote it as a favor because of your friendship. YOU: Oh, yes, Lois! Please give her my best when you see her. Yes, this card has my current pricing on it. It's on the back. DIANE: I just thought - because we go way back together...at least you could meet me for coffee, and I could hear about your programs. YOU: Definitely! I'd love to help with your resume or whatever you need. I'm sorry that I have to get home with these groceries, but give me a call -- a coffee consultation is one of the services listed on the card, but we won't get into business here at ShopRite! Have a great day Diane -- (wheeling cart around to leave) -- Babelfish Articles May 2014 – July 2014 20-7-14 Page 86 DIANE: (Looking at your business card) Wow! These prices are high. YOU: Have a wonderful weekend! When you launched your business, you researched competitive prices. People happily pay you $500 to write their resumes for them and you have nothing to apologize for. You need more people like that, not more moochy freebie-seekers who value your services at nothing. At the same time, we must bless the people you wrote free resumes for, because it was those people who nudged you far enough that your trusty gut said "This is ridiculous." They are teachers, every one of them! As for people who don't like your pricing, so what? When you walk into Tiffany to buy an expensive gift for a special person, you don't expect the salespeople to say "I'm sorry we're not Target." Tiffany is Tiffany and Target is Target. The two brands appeal to different customers (with lots of people shopping at both stores at different times). You've cultivated something personal and valuable to you and your clients -- your own view of the world as reflected in the resumes you write and the advice you share. You have to believe in the power of your magic before anyone else will. That means giving up the "Friends, Family and Random Strangers" zero-cost pricing and stepping into your role as the owner of a real business - not a hobby, and not a charity - your grown-up, legitimate business. I'd commiserate with you on the discomfort you're feeling about taking this step except that I know it's these labor pains that got you to act on your gnawing cognitive dissonance in the first place. I'm talking about the dissonance you feel when you're charging people nothing for services your actual clients value at hundreds of dollars. Let me be a backbone-stiffener for you. Your flame cannot grow when you're dimming it on your own by treating your business as a hobby. Now it's time for you to push through the labor pains and give birth to Robin, the Entrepreneur. Forget the Friends and Family pricing, a wimpy move that will only delay the inevitable. Charge whatever you charge, the same price for everybody. You won't be the cheapest career coach in town, and why would you want to be?
  • 87. You'll rise up in your flame when you welcome the right people in and hasten the departure of the rest out of your life and energy field. You're on a mission, and only by stepping over this next obstacle and into your power will you move forward on your path. Does that sound New Age-y? If so, here's another take: Do you really want to spend any more time with people who don't think your services are worth what you charge for them? What good could those folks possibly do you? Stand in front of your mirror, smile and say "Here's my business card and pricing. Give me a call!" until you can say it without stumbling. Go to bed, wake up a business owner and leave the vast ocean of friends-in-name-only behind. Watch the real clients show up, then! Babelfish Articles May 2014 – July 2014 20-7-14 Page 87 Best, Liz Job-seekers need to know when to stop giving their magic away for free, also! Here's a blog post about that. Branded Tools A Factor In Creating Loyalty By Frank Riolo Friday, June 27, 2014 Millennials are growing up. In my last Engage: GenY contribution, I highlighted the media’s tendency to overlook the fact that many older Millennials are already far along in the “game of life,” if you will. It goes without saying that the way this generation pursues life’s steps is different from that of Boomers and Generation X. Technology has obviously played a huge role in the lives of Millennials and will continue to do so. Because of this, brands should focus on ways in which they can incorporate this technology into their everyday lives. The majority of marketers trying to appeal to Millennials has already tapped into – or at least has plans to consider – mobile and digital ad strategy and tactics. However, this goes beyond simply engaging with consumers through social media or online gaming. This is about tools. The Millennial personality has shown us that convenience and immediacy have become paramount characteristics for any product. By offering members of this demographic something that makes their lives easier, it will likely establish loyalty and grant credibility. Consider this: recent research by Baby Center has indicated that 86% of new mothers are Millennials. Of that portion, 76% rely on electronic devices for parenting, while 83% use video sharing and 78% use mobile apps. While developing games and online contests might seem like the more fun route to take for a brand (especially those trying to appeal to mothers), giving Millennial consumers something useful as branded content may be another effective route toward winning loyalty. On the other end of the spectrum, Millennials have shown a strong drive to spearhead their own business. Fifty-four percent of Millennials either want to start a business or have already started one. Meanwhile, 35% of employed Millennials have admitted to having their own side business to supplement their income and 27% are self-employed. Most entrepreneurs will tell you that, whether you are selling sea shells or running a major company, a key to success is choosing the right tools to keep yourself, your employees, and your product organized. So how can brands take advantage of Millennials dominating both the professional and domestic marketplaces? By creating something useful in their eyes. If one of the major stepping stones to creating brand advocates is engagement, then there is no better way to engage a consumer than
  • 88. by helping them with life’s necessities. Brands, particularly household goods, should concentrate on creating apps that make tasks simpler, videos that educate, and written content that assists. By doing this, they will be viewed as assets in everyday life, not as disturbances. Babelfish Articles May 2014 – July 2014 20-7-14 Page 88 Digital Ad Fraud: Sizing up the Challenge Written on Jul 11, Michael Iantosca Media quality is influenced by several variables, some more easily measured than others. Perhaps the most difficult to accurately measure is also considered the most ominous: fraud. As an industry, we’ve achieved acceptance (fraud exists) before understanding (how we measure it and how much is out there). In come the verification vendors, touting the ability to report what everyone is up against, except that their numbers don’t match up. Fraud levels are reported from as low as 2 percent to as high as 40 percent, with winners and losers at both ends of the spectrum. With such disparity, it’s no wonder so many media buyers and sellers are confused and distrustful, causing some to even take a passive stance when it comes to fraud. How can anyone develop a strategy to overcome a threat when the risk hasn’t been properly quantified? Rather than sit back and allow hackers, botnet operators, and pixel stuffers to undercut your online advertising potential, here are three areas to consider when assessing verification vendors and the right way to size up the challenge. Coverage and Data Distribution Without good coverage across the web, any estimation as to the amount of fraudulent impressions served will be speculation at best. But what does good coverage mean? No vendor has the luxury of capturing 100 percent of Internet activity, whether with crawlers, pixels, panels, or all three. But a vendor that has visibility into thousands of campaigns that span all categories and industries, performs real-time signal analysis, while also layering historical data for maximum accuracy, can ultimately achieve a true representation of the web. The trick, however, is capturing the correct distribution of data across the multiple sources of display inventory, as each source suffers from different levels of fraud vulnerability. If a reported level of fraud seems too high or too low, it’s worth questioning whether the measurement is heavily skewed toward a particular type of distribution channel. Full visibility into premium publisher activity but only a keyhole vantage point into long tail sites will paint a picture of low risk. Alternatively, emphasis on exchange and network activity will lean towards high risk. At Integral, we see levels of fraud approximately four times higher for networks and exchanges than for direct publisher buys. With so much activity happening through aggregated and automated channels, fraudulent activity on direct publisher buys barely impacts our overall average. Sophisticated, Ever-changing Technology Any inquiries by buyers and sellers into how fraud detection technology actually works will likely garner some general, maybe even vague, responses. Vendors are fighting an army of suspicious and nimble characters, quick to modify their strategies as soon as their covers are blown. The need to keep stealthy combat maneuvers secret is therefore understandable. Although there may be some common signals that vendors use to detect fraud, fraud detection technologies are far from equal. The ability to not only apply a combination of tested strategies, but also layer in some proprietary secret sauce, will only be effective for a limited period of time. Building and applying fraud detection technology is an exercise in constant innovation. As mentioned, the enemy is nimble, which allows him to move between targets and change his disguise. A reported low level of fraud may actually be the result of subpar technology, or once superb technology that failed to evolve over time. Is the vendor able to identify browsing behavior atypical of humans? Are they looking for abnormal distribution of browser activity? Do they have
  • 89. an arsenal of secret weaponry? Since peeking under the hood is not always an option, use a heavy investment in research and development as a key indicator when appraising the source. A vendor that is able to attract, develop, and retain an elite troupe of data scientists will likely be most adept at making sure the technology stays on the cutting edge. Babelfish Articles May 2014 – July 2014 20-7-14 Page 89 Placement Level Detection Perhaps the most overlooked distinction when evaluating your fraud measurement options is whether the technology can detect fraud on an individual placement or impression, as opposed to on a site. This is critical because bot-based fraud happens at a user level. A site experiencing traffic from suspicious sources is typically not void of legitimate traffic. Bot operators may have infiltrated certain pages, generating clusters of fraudulent impressions on specific areas at specific times through specific (infected) computers. Those clusters may represent 2 percent of a site’s inventory, or maybe ten times that; in either case, it’s certainly not 100 percent. Yet, that’s the label that a vendor might slap on a site, using a very binary assessment – all fraud or no fraud – which is not only unfair to the publisher, but can dash an advertiser’s hopes for scale. Higher reports of fraud can be based on overestimations of fraud across a site, rather than across specific impressions, painting a bleaker picture of reality by exaggerating risk, and killing reach and scale. Consider also the following: it is possible to block fraudulent impressions from ever being served in real time. However, again, the technology must be able to not only detect fraudulent users, but also take action against impressions and not against an entire source of inventory. Lastly, any vendor that argues blocking fraud ultimately informs fraudsters of secret modus operandi is incorrect. It’s very difficult and highly unlikely that fraudsters are able to reverse engineer the reasons why their efforts sometimes fail. Whether you are a media buyer or seller, ask yourself the following when presented with a level of fraud from a verification vendor: • Is the data pool representative of the digital ecosystem, capturing data from all inventory sources in the same proportion as their level of transaction? • How sophisticated is the technology? Has the vendor invested in and retained talent within research and development? • Does the inability to analyze placement-level data result in overestimations of fraud? Are these overestimations then diminishing scale by generalizing the unsavoriness of an entire site? When comparing reported fraud levels, assess the source and who may be gaining from skewed measurement. Fraud is an industry-wide epidemic that requires sophisticated, dynamic technology for accurate measurement and risk assessment, and finding the right partner to combat it merits your due diligence. Mobile Search: Key Considerations for Marketers Written on Jul 8, 2014 Marcus Tober The growth of mobile is having a profound impact on how brands market themselves. Nearly 20% of the average adult American’s daily media consumption was on mobile devices in 2013, a figure that is accelerating. Google estimates that queries on mobile devices grew five-fold in the last two years. This is not surprising as search can be the quickest and easiest route to finding information on a mobile device: obviously far easier than typing a URL on a small smartphone screen. The move to mobile is driving change across both the organic and paid search markets, with an estimated 26.7% of Google’s ad revenues expected to come from mobile search in 2014.
  • 90. It’s important to recognize that search engines deliver different results on computers, phones and tablets. Our own analysis in 2013 found that 25% of organic Google search results delivered to mobile phones are different to those displayed on computers using the same keywords. While results displayed on tablets differ from those on computers in around 8% of cases. So, should content be the same or vary, according to device? And with more and more searches now happening on mobile devices, what are the main issues that marketers need to be aware of? Here are some key considerations: Babelfish Articles May 2014 – July 2014 20-7-14 Page 90 1 . Attention spans vary It goes without saying that attention spans are shorter on mobile devices, particularly smartphones, meaning bounce rates are higher. You have a smaller screen, normally (though not exclusively) accessed while on the move, which means you are unlikely to be happy reading long-form content. People want information quickly and immediately, rather than having to scroll through pages of results. Answers have to be brief, relevant and understandable, otherwise they simply will not be read. 2. Context is key Mobile search is particularly strong in specific sectors – according to Google, 30% of all restaurant searches and 25% of all movie searches are performed on a mobile device for example. And the intent behind a search query is often radically different between devices. If you search for pizza on your laptop, you are more likely to be at home looking for takeout. On mobile you are probably on the move, and hence searching for a restaurant nearby (which is why the factor “local” is much more important when performing mobile searches). Often your mobile search is more urgent, and less speculative – if you type in “gas station” it could well be that your car is running low and you need one NOW, rather than just being interested for the future. 3. Type of content As I’ve said, people tend to not read long-form content on their mobile devices, so bounce rates are higher. But figures from comScore reveal that the time spent consuming rich media (such as video) on mobile devices is actually higher than on desktop. This needs to be factored into your decisions on the types of content you offer to users, providing a range that is optimized for different devices. 4. How Google treats mobile is different Google is beginning to better understand the differences in context and intent, so that laptop and mobile results are starting to vary and this trend is going to continue. Google has additional information about the mobile searcher, such as exact location, to help it provide more relevant results. Additionally, as the form factor, particularly screen size, is different on a mobile device, the way Google displays results is simpler, using features such as Knowledge Graph to deliver answers in a straightforward, easily readable manner. The advent of Siri on the iPhone, Google Now on Android phones and other voice assistant services is another attempt to make search simpler and easier, replacing typing with voice queries. 5. Responsive content is coming Many organizations have already adopted a mobile first approach to digital marketing, focusing on creating a strategy and architecture that works across platforms. With the help of techniques such as responsive design and HTML5, their web pages are designed to change to fit screen size and the device input mechanism, giving the user a seamless experience. But the next step is going to be responsive content. Take the example of a retailer – its traditional website should be optimized for desktop and laptop searches, with long-form, text-based content that covers all potential areas
  • 91. of interest to searchers. For smartphone searchers, content should be condensed to what is relevant to them, perhaps using video rather than text, with the option to click to access the fuller desktop style article. Babelfish Articles May 2014 – July 2014 20-7-14 Page 91 6. Mobile ranking factors are different SEO pros have a very good idea of the factors that Google and other search engines evaluate to determine where web pages should rank on traditional computers. The existence of keywords and related terms that are relevant to the search query, links to a page from other web pages and user signals such as bounce rates are all thought to be important. Marketers need to understand that some of the same ranking factors are likely to be important for mobile SEO. But their relative importance could be different and other mobile specific factors probably play a role. For example, the initial results of Searchmetrics analysis into ranking factors for mobile search indicate that the average file size is considerably smaller for URLs that rank well in mobile search. Of course, currently we know less about the ranking factors for mobile than we do about those for searches on computers. But that is likely to change as the search industry places greater emphasis on understanding the mobile search algorithms. Overcoming RTB’s Transparency Issues Written on Jun 12, 2014 Fred Hsu ADOTAS – As real-time bidding takes off, transparency is becoming a predominant issue among advertisers, and media sellers and buyers. The buying and selling happens instantaneously in – you guessed it – real-time, and because it is still relatively new, the rules of the road are still being defined. As a result, some players in the industry are still timid about the technology. There are several different complexities of this Achilles Heel for RTB. I oftentimes hear of many “black box” approaches and as a result, advertiser skittishness and a tendency to lean on bell-weathers such as Facebook advertising. Fortunately, there are also solutions to these challenges that the industry should begin adopting. I’ve outlined the challenges and some potential solutions below. Rapid Global Expansion We are currently experiencing an explosion of new mobile ad exchanges, coming out of everywhere from India to China to South America. The traditional mobile ad network concept from 2009-2011 is now fundamentally being redefined as an ad exchange. This creates the need to properly vet exchanges on behalf of the end advertiser from not just a transparency perspective, but also a technical and security one. Questions we should be asking include: Is this a new exchange representing mostly chat or utility apps? What kind of ad inventory am I getting myself and my advertiser into? How does the exchange properly tag or verify each piece of mobile web or app ad inventory? Securing Data It is essential to understand that difference between a technical policy and a technical infrastructure. Perhaps more importantly, it is essential that they are both sound. Regardless of how tight your policy language is, no contract will ever truly ensure the storage requirements, proper encryption and data retention policy unless those systems are subject to audit rights by 3rd party certification entities, even by advertiser technical teams themselves. This very concept scares the life out of most DSPs. In fact, those audit rights may be from advertiser to DSP, DSP to exchange, exchange to publisher. The advertiser customer should ultimately be able to obtain full transparency down to the device identifier, site or app his or her advertisement was being placed on, and how that ad transaction was securely being delivered. For in-app advertising, various fingerprinting methods for
  • 92. anonymous identifying of end-users reduce the level of transparency and accountability in the ecosystem, especially now that both Google and Apple support privacy-compliant identifiers specifically for advertising. Babelfish Articles May 2014 – July 2014 20-7-14 Page 92 Trading Desks, DSPs and Middle-Men An increasingly opaque network of trading desks, DSPs and middle-men is increasing the amount of complaints from top-end mobile advertisers. For example, Advertiser 1 finds out that she is allocating money to 2-3 DSPs and trading desks, each purchasing on the same exchange and effectively driving up her unit-cost as she effectively bids against herself. In another example, Advertiser 2 finds out from his customer service department that an advertisement for his app was being displayed on a lewd, spammy, or otherwise previously blacklisted piece of inventory. Audits will give advertisers a better idea of what these players are doing with their ad dollars. 1st, 2nd, and 3rd Party Data Many mobile advertisers are deflecting to Facebook for their 2nd party data – in other words, data directly from the traffic source that pretty much acts like a black box. Data goes in, either directly from users augmenting their own profile, or implicitly, such as a collection of behavior profiles. No data ever comes out. It’s the lock-box concept and the crown jewel of companies like Facebook and LinkedIn. 1st party data is data supplied directly from advertisers, with specifics on their customers. Advertisers may want to share this data, once they have built enough trust, with networks to re-market or infer lookalikes. 3rd party data is data supplied by various data companies from sources such as Axciom, Transunion, BlueKai and many others. These companies have built large businesses based on proprietary data collection and sharing methods. Sometimes you have people within the same household sharing devices. For example – one may be using Facebook and reading business news 20 percent of the time, the other playing, even spending within dress-up doll games the other 80 percent of the time. Even if the device is being used by the same person, he can be identified by Facebook and another ad network differently. After reading Mary Meeker’s 2014 report on the state of the mobile industry, it’s clear to me that data – 1st, 2nd and 3rd party– is going to pave the way for the future of mobile, helping bridge the huge gap between advertising spend and time people spent on mobile devices. The better the data, the more advertisers will spend. Accountability for every ad impression All these problems can be solved with full transparency and being accountable to your advertiser from a full audit perspective down to each delivered ad impression, click and device ID. If there isn’t that capability, the advertiser must ask himself whether he may be throwing money into a black hole. Online TV Versus TV Online: There's A Big Diffference by Sean Cunningham, Monday, June 16, 2014 The wave of online video coverage this spring and into the summer has missed a critical distinction for advertisers: There is a fundamental difference between TV online and online TV. Knowing it will allow advertisers to build from an assured base online.
  • 93. I call TV online the 50+ sites where viewers seek out streaming, information and conversation related to their favorite TV shows. I call online TV the compendium of user-, publisher and brand-generated videos that consumers encounter across the Internet. Both get about 20 hours of time every month from U.S. consumers. But they do it in vastly different ways, with real implications for advertisers. TV online sites grow with viewers’ all-screen appetites. Think ESPN, The Food Network, MTV or SyFy and programs like “The Walking Dead,” “Pretty Little Liars,” “Fargo,” “The Americans” or “Conan.” Their audiences convene predictably because they’re committed to the content, so they form masses with a common source of connection. Show fans watch wherever, whenever they want; they read about the shows and the talent; they watch companion content (e.g., “Last Chance Kitchen,” the online contest that parallels Bravo’s “Top Chef”); and they share their reactions on-site as well as on social networks. They literally propel the content. Online TV is a different animal. The portals can be destinations, but the programs don’t have natural audience momentum yet. For every “Gangnam Style” billion-view video, there are thousands of videos and channels gaining viewers but not yet establishing audience momentum. Without regularly scheduled content in common, the audiences are floating and free-forming; they come and go in different directions. TV online sells pre-assembled mass audiences for predestined showings, primarily through direct sales forces. Advertisers buy known audiences attached to specified content. Advertising appears in video players at the center of sites the audience came for. The models are too simple to game (no viewability issues, no bots/fraud), and there are universally accepted measurements of performance. TV programmers come from a make-or-break heritage: Viewers stay or the model breaks down. Online TV sells discovered audiences that can be aggregated to mass, primarily through an expanding web of third parties and exchanges. Advertisers buy demographic or behavioral triggers, and impressions are allocated and aggregated algorithmically. Advertising appears in a range of venues, often thumbnail-sized players below the fold. Importantly, TV online pays programmers enough to keep creating content that’s compelling, consistent and sustainable. It takes a concentration of money and time to create the content that sets up robust advertising environments. TV networks invest enormous sums in original content -- sustainable stories made for serialization -- and audience development. Branded TV programmers put 50% of revenues into owned content (more than $125 billion in the past five years). In online TV, the biggest portals are just starting to invest millions in original programming. They aren’t destinations for content on a schedule yet, and likely won’t be anytime soon. Online TV pays programmers pennies on the dollar -- the LUMAscape exacts its "tech tax" first -- that don't support continual upgrades in quality. Advertisers need the right number of customer connections to plan against. For them, the real utility in upfront buying is being able to synch audiences to sales goals, thereby laying the foundation for a year’s worth of relevant audience engagement. Buying right is about getting that foundation with an interconnected audience -- people who propel content (including advertising) across screens. TV online brings predictability -- planning from an assured base -- into the otherwise uncertain territory of online video. In the process, it forms a hedge against the equal opportunity problem of ad fraud, which can leave an advertiser like Mercedes with a 57% unviewable rate. Babelfish Articles May 2014 – July 2014 20-7-14 Page 93
  • 94. Babelfish Articles May 2014 – July 2014 20-7-14 Page 94 Contrary to the rallying cry of some Internet ad titans, it’s not “all video.” With all advertising, the key is knowing what you’re getting, whom you’re getting it from, whom you’ll attract in the way of audience, and whom they’ll draw in through various forms of social networking. Knowing the difference between TV online and online TV is the first step toward predictable audience momentum that sells more stuff. What’s Next for Private Exchanges? Written on Jun 10, 2014 Author Prasanta Behera ADOTAS – Over the past couple of years, we have seen an eruption of discussion surrounding private exchanges. Many big publishers are now moving to the programmatic model via the private exchange path. For example, earlier this year, Google and Time Inc. introduced the Time Inc. Global Exchange, an ad exchange that gives marketers programmatic access to Time Inc.’s digital footprint. The industry is moving forward, and it is important that we take the time now to think ahead to what additional capabilities we’ll need in order to ensure that open exchanges and private exchanges can co-exist and thrive.
  • 95. In its first phase, the private exchange was a direct sell relationship between the supplier and the buyer. AOL, Yahoo or any big inventory providers were building direct relationships with advertisers. To do this, an organization needed both a direct sales and business development team. Although this worked well for large publishers, for many mid-size to smaller publishers, this was a challenging undertaking. At the same time, the open exchange providers built technology platforms to buy and sell via a programmatic model to reduce friction and bring better liquidity to the overall marketplace. The open marketplace provided a platform for any buyer and seller to complete a transaction at an impression level without a prior agreement. In phase 2, exchange platform providers created private exchanges so that inventory providers could sell to a select list of advertisers to enhance transparency and control. Today, if publishers are unable to sell the entire inventory via the private exchange, it can be sold in the open market without having to worry about the fill rate. This can also be done anonymously. This is beneficial on several fronts: • a) Brand publishers who do not want to participate in an open exchange can build private exchanges and maintain the control of who buys their inventory; • b) As a buyer, you can participate in the private exchange without any impression volume commitment (unlike direct relationship), and ; Babelfish Articles May 2014 – July 2014 20-7-14 Page 95 • c) There is more liquidity to the marketplace. Although the private exchange has helped, it still requires a human to build the relationships. Most buyers receive an email or call from the exchange talking about specific inventory providers. This has been sufficient so far, but that won’t be the case for long. Currently very little information about the private exchange inventory is available online (in the exchange console) and basic information such as creative sizes, floor price and daily impression volume vary from provider to provider. As we look ahead to the next phase where private exchanges and open exchanges harmoniously co-exist, what needs to be done to make the private exchange more scalable and reduce the integration friction? This is by no means an exhaustive list, but here are a few ideas: • Programmatic Interface: Exchanges should provide programmatic interface (protocol) to discover private exchanges and establish relationships. The manual approach is a good start, but it is essentially going backwards. The buyers and sellers should be able to discover each other through an exchange specific repository, which needs to be exposed via programmatic APIs. Currently information about the private exchanges inventory is static. Any additional capability provided by the private exchanges requires a manual information exchange. A programmatic model can help the discovery of new capabilities, and buyers can act much faster. The IAB could take a lead on defining the protocol to establish an industry standard. • Richer Metadata: Both the buyer and seller need to provide richer information on the inventory and buying patterns. The private exchange should provide information on inventory categories, brand safety and viewability metrics (certified by a vendor) and more details about the inventory. A well-defined common inventory of attributes and metrics needs to be created. • Fine-grained Customization: A buyer may only be interested in a piece of 300×250 inventory in the Food category, however in the current model, this is difficult to set it up; the sellers ends up in creating multiple exchanges and this proliferation makes it hard to manage. What is needed is for the seller to create one private exchange and and customize it based on the buyer’s interest. What is needed here is better management tools for both buyers and sellers to manage within the private exchange domain.
  • 96. As the number of private exchanges explodes, the need to establish a common vocabulary is increasingly important. At the same time, the industry needs a well defined protocol to reduce the friction points. Whether it’s the IAB who takes the lead, or an industry consortium, the goal is to ignite a discussion around building a great private exchange platform that can co-exist with the open exchanges, ultimately creating a programmatic environment that is scalable, transparent and open while still delivering on the benefits of private exchanges. Babelfish Articles May 2014 – July 2014 20-7-14 Page 96 Consumers value the shopping experience 30 May 2014 NEW YORK: Consumers around the world appreciate the possibilities that new technology and data analytics offer, but they also value shopping as an experience and not just as a transaction, according to a new report. The Truth About Shopping study from McCann Truth Central, McCann Worldgroup's consumer intelligence unit, explored global consumer attitudes and behaviour related to all areas of shopping and was based on a survey of over 10,000 people in 11 countries (Brazil, Chile, China, France, India, Mexico, South Africa, Spain, the UEA, the UK and the USA). This found that 84% of people globally were aware that companies tracked the websites they visited in order to recommend products they might like and two thirds (65%) were happy to share data if they could see the benefit to them. This raised new concerns, however, as over half of respondents (52%) thoughtshopping had become too impersonal as algorithms increasingly directed their purchases. And a similar proportion (57%) worried they would discover fewer new things if companies always were only showing them the sort of items they were already looking for. Therein lay the McCann's 'truth' about shopping – the need to balance the science of shopping as supplied by big data and the art of shopping as experienced by consumers in the real world Laura Simpson, global director, McCann Truth Central, saw this as an opportunity for sellers, as she noted that two thirds of shoppers were looking to be inspired while they were shopping. "They want the very human and personal touch amidst a wave of algorithm-based personalisation," she said. But consumers often exhibited contradictory views on tech-related issues. For example, 71% were concerned about how much online stores knew about them (although this was lowest in the US, at 58%), but at the same time 59% would be open to a store that was able to recognise them as they walked through the door. Mobile is set to play an increasingly important role in the shopping experience in the future. The study found that those among consumers who had shopped on their mobiles in the past six months, 49% could see themselves shopping exclusively on their mobile in the future. Even if they weren't actively buying via mobile they were likely to be window-shopping, as 70% of respondents said mobiles were good for browsing but not for buying, a perception that was highest in Mexico and the USA. Retailers embrace PowaTag technology 30 May 2014
  • 97. LONDON: Leading UK retailers, including Waitrose, Argos and Laura Ashley, are set to follow in the footsteps of French fashion chain retailer Comptoir de Cotonniers in using the PowaTag app that allows consumers to buy products directly from ads. Earlier this week Comptoir de Cotonniers created 10,000 'virtual boutiques' in Paris, Marseilles and Toulouse as it launched its 'Fast Shopping' campaign based around the app. Shoppers using the app can scan ads in various forms – outdoor, café tabletop, magazines, taxis – to complete a purchase within seconds and get a product delivered within 48 hours. Nancy Pedot, CEO of Comptoir des Cotonniers said the idea would "redefine what multi-channel means for the retail industry", The Drum reported. Valerie Dassier, the brand's ecommerce and CRM director said the technology was an "incredible way" to merge offline and online retail, with consumers only required to download one app to be able to buy products from hundreds of brands. She expected the campaign would drive up impulse purchases and if it met expectations would be developed further. That could mean using proximity-based tools such as Beacons for in-store marketing as well as extending the campaign to other markets, including the UK. From next month UK fashion retailer Laura Ashley will integrate PowaTag codes into its website and subsequently into its catalogue, Marketing Week reported, so that customers can make purchases simply by scanning product pages. Argos, the catalogue store, and Waitrose, the supermarket chain, are also planning to go down this route, while record label Universal Music is looking at using the app to make it possible for people attending gigs to buy music and merchandise via their phones. Almost 500 brands are reported to have signed up to use the technology, and PowaTag is also in talks with a number of charities interested in using the app to solicit donations. Earlier this year Dan Wagner, the founder to Powa Technologies, told the Financial Times that the app "flips the balance from online players to physical retailers. It's an omni-channel platform that's unique in the world." Data sourced from The Drum, Marketing Week, Financial Times; additional content by Warc staff Babelfish Articles May 2014 – July 2014 20-7-14 Page 97 Marketers look to 'service design' 28 May 2014 LONDON: A proliferation of touchpoints means that brands are having to reconsider how they engage with consumers and add value to those interactions, with service design emerging as a new discipline aimed at achieving that goal. According to Dan Harris, director at service design agency Fjord, "service design is about fusing a brand's 'top down' commercial value-driven perspective – what it stands for, what customers can expect from it – with 'bottom-up' emotionally-driven insight into more fundamental human motivation and needs". Writing in Marketing, he explained that design creativity could help brands "rethink their entire ecosystem" and develop ways to be useful to consumers that went beyond the original product or service. Nike, for example, was enabling consumers to become better athletes through its Nike+ Fuelband.
  • 98. As Paul Kemp-Robertson of Contagious Communications noted in Market Leader: "The brand has created a community of advocates who regard Nike as a health and wellbeing partner, providing useful services and tools. The Nike+ FuelBand becomes an integral part of their daily lives." Similarly, British Gas has moved beyond a role as a mere utility service with the introduction of its Hive Active Heating system, which allows smartphone monitoring and control of temperature and heating from outside the house. Kemp-Robertson further observed that when Delta Airlines had come out of bankruptcy the entire company, including the marketing department, had been converted to the principle of service design. As a result it had changed its view of itself, from a travel brand to a destination brand, and had developed services such as an app to enable concerned passengers to track their bags at every point in the journey. Service design, argued Harris, can help brands and organisation build a connection with consumers over the long term, creating services that grow with consumers' evolving needs by delivering value over time. That required marketers to broaden their use of data and personalise services more effectively. "The risk for brands that don't embrace this approach is that a start-up will come along and do it better," he said. Babelfish Articles May 2014 – July 2014 20-7-14 Page 98 Apple set to connect iPhone to your car Source: AAP May 27, 2014 7:28PM The latest gadget from Apple - connecting iPhones to cars - is getting set for a rollout in the US. APPLE is getting ready to hitch the iPhone to cars in a mobile marriage of convenience. The ambitious project, called CarPlay, implants some of the iPhone's main applications in cars so drivers can control them with voice commands, a touch on the steering wheel or a swipe on a display screen in the dashboard. It's expected to be available in the US in the coming months when Pioneer Electronics plans to release a software update for five car radios designed to work with the iPhone. Alpine Electronics also is working on CarPlay-compatible radios for cars already on the road.
  • 99. Honda, Hyundai, Mercedes-Benz, Volvo and Ferrari are among those expected to start selling car models with built-in CarPlay services this year. Google is working with car makers to do something similar with smartphones running its Android operating system, but Apple appears to be further along in efforts to make it easier and safer to text, email, get directions, select music and, yes, even make calls while driving. I recently checked out a test version of CarPlay in a van equipped with a Pioneer radio designed to work with the iPhone. The demonstration through the streets of San Francisco convinced me that Apple is on the right track. The CarPlay system is bound to appeal to iPhone fans who spend a lot of time behind the wheel. It makes less sense for iPhone owners who, like me, spend more of their time walking and using public transport instead of driving. CarPlay's biggest drawback is the cost. If you want it in a car you already own, compatible radios from Pioneer sell for $US700 to $US1,400. After factoring in other required parts and labor, figure on spending $US900 to $US1,000 just to get Pioneer's least-expensive CarPlay system in your vehicle. That's more than the price of a new iPhone, but cheaper than buying a new car with CarPlay built in. The key to CarPlay's success may hinge on Siri, the iPhone's digital personal assistant. Apple has been striving to make Siri smarter and more versatile, an endeavor that CarPlay figures to put to the test. Siri serves as CarPlay's central nervous system, doing everything from taking email dictation, reading incoming text messages out load, and scrolling through the system for song requests or different genres of music. Summoning Siri can be done by touching a button on the steering wheel or CarPlay's display screen. While CarPlay also responds to touch, the system is at its best when Siri is doing most of the work. I got only a half-hour demo of CarPlay, too little time to determine whether Siri will be up to the job. Within minutes of getting in the car, Siri couldn't retrieve the correct address for a requested restaurant in San Francisco. Instead, CarPlay listed several other places with the same name, so Siri apparently at least heard the request correctly. The omission of the requested restaurant may have reflected shortcomings in Apple's database of local businesses. Beyond that, Siri performed flawlessly reading back incoming texts, composing and sending emails and playing the role of disc jockey when asked to play the music of specific artists such as AC/DC. It took only a few seconds before "Back in Black" blasted through the stereo. Even a question about Arnold Schwarzenegger, a name that can be difficult to decipher, didn't stump Siri. Babelfish Articles May 2014 – July 2014 20-7-14 Page 99
  • 100. If Siri is able to consistently handle those kinds of challenges, then CarPlay could make the iPhone an even more indispensable mobile device. Babelfish Articles May 2014 – July 2014 20-7-14 Page 100 Don't Just Tell A Story; Be A Narrative Architect May 20, 2014 Storytelling is everywhere you look these days—and for good reason. Stories can transform the ways audiences engage with a brand and propel important messaging forward. But simply telling a single story, no matter how great it is, no longer suffices. Here’s a pro tip: you need more than one story. Nearly every brand now has a tale to tell. Thanks to social media and the prevalence of content marketing, brand stories abound. But telling one single story runs the risk of getting old—and, worse, of looking uncreative. That’s why I encourage content marketers to develop a healthy and robust Narrative Architecture. Building a healthy Narrative Architecture means unearthing many different stories and voices from within a brand in order to engage with consumers, offer proprietary knowledge and expertise, and to ensure a distinct strategy and approach to each of the platforms it publishes on. A Twitter strategy doesn’t equate to merely tweeting Facebook posts, just like a Facebook strategy shouldn’t be merely linking to a corporate blog. A brand’s content should be distinct—and respectively useful—across its various reaches. A thriving Narrative Architecture takes into account the need for a diversity of many different kinds of stories, platforms, and voices in order to create a truly strong and striking brand identity. Think of brands like Red Bull. Red Bull isn’t just telling stories—the brand is building an entire narrative world. Look at how an idea like Red Bull’s Music Academy feels like a strong enhancement to the brand’s robust and living narrative. For another brand, that could have been schmaltzy or too try-hard. Instead, Red Bull is able to construct an entirely new niche of music-related stories that actually complements their existing narrative ecosphere. Imagine that storytelling is akin to building a house. The foundation of that house might include a brand’s principal messaging pillars, while the floor plan represents the various ‘rooms’ where your content will live. And those rooms might dictate the kind of content, as well as the tone—whether it be formal feature profiles, casual social media posts, or the daily stories that often congress on corporate blogs and content-centric platforms like LinkedIn and Tumblr. Tumblr is a testament to the benefits of investing in Narrative Architecture. Companies like Pom get it right; they have a Tumblr dedicated not solely to top-of-mind messaging, but to pomegranates. In this way, the company is able to reach a distinct but important niche audience and tell an entirely different part of their brand’s story. The result? Pom comes away looking creative, daring, fun and interesting. This is an imperative point about fostering a healthy Narrative Architecture: a good content strategy dares to cover subjects that aren’t in a CSR vertical. Brands, especially in 2014, should be committed to producing content for their audiences. That might mean telling stories that are peripheral, diverse and yes, maybe even off-topic. These pieces will only give more credibility to the features and social strategies that are on-message. The difference between telling a story and building an epic narrative landscape is the same difference between the plot line in a great book and the book itself. Think of a story as a strand in a fabric. One story is good, but blending together many different kinds of stories and voices from within a brand’s world produces a completely different—and more profound experience. Wouldn’t
  • 101. you rather your audiences engage with the world of your brand, instead of repeating the same old story? The biggest problem with the marketing funnel is that it leads to the media funnel Babelfish Articles May 2014 – July 2014 20-7-14 Page 101 In: advertising, big data, digital marketing, facebook Yes, the purchase funnel as a linear model in a non-linear world, is a big problem. My own shopper research done in partnership with InsightsNow on behalf of AOL proves that a high percent of brand consideration now forms as people are doing their pre-shopping research or right at the point of purchase. McKinsey found the same thing. However, the BIGGEST problem with the marketing funnel is that it leads to the media funnel. Because we think awareness comes first, then consideration then finally purchase, we move from big to small, from reach to targeted advertising, from attitudes to behavior. I propose that marketers flip the media funnel. We need to start with desired behavior (measured as “conversions”) and work back through digital behaviors and ad impression serving that are most likely to lead to these conversions. It is media planning in the era of big data and data science and it works in the other direction. In the attached diagram consider media placement in terms of A, B, and C levels. Current Media planning practice typically moves from C to B to A. Now let’s think about planning media by flipping the sequence. The average elasticity to ad spend is in the .1-.15 range (i.e. double your spending and get a 10- 15% increase in sales) according the the Wharton future of advertising project. Consider that as a grand mean. I hypothesize that advertising elasticity sub-means will be highest for A, second highest for B then comes C. If so, we should be spending as much as possible on A opportunities, then move to B, then finally to C to round out the reach we hope for. This should result in substantial differences in how marketers spend their money and what research is needed to add value. The key questions are: 1) What is the relative impact of impressions at each level of targeting? 2) Assuming that A level targeting produces the highest conversion rates, how can the marketer differentiate when someone is available for an A level of targeting? 3) How much scale can you achieve with A alone, or with A+B targeting?
  • 102. “A level” targeting needs to be better understood. How can you spot if someone is in an A moment? This is a statistical question best addressed via predictive analytics but variables I would consider, based on theory are: • Indicators that someone is in a pre-shopping research phase or about to transact • Indicators that someone neither loves nor hates your brand…that they are in the middle of the U-shaped curve of preferences (i.e. probability of buying your brand) and so they are most persuadable. In digital life, there are lots of signs as people pull content that is important to their shopping mission. In shopper work I have done, I found that over half of shoppers turn to digital tools for most products and services. Even grocery products experience a large percent of shoppers using digital. They search, visit websites, visit retailer sites and explore their potential purchases, they visit store locator pages and comparison sites, and of course, they go to physical stores. Use predictive analytics to identify these moments. You can imagine analyzing a database where we know who shopped when and, working back through the clickstreams, using logistic regression with a bunch of digital breadcrumb variables to determine the strength of signalling. B moments are also very interesting, as there is likely to be a conversion lift vs. C moments. Also, B moments will be needed in the media plan to achieve the reach that marketers want. B moments occur when a user is browsing based on their interests and lifestyles without necessarily having immediate shopping purpose. In the AOL work, we found that a quarter of people regularly engage in this behavior. The final piece of advice I have is that marketers need to expand their A and B opportunities by creating brand audiences based on brand liking and compelling content. These first party data and the A and B moments they create will be worth their weight in gold. Some brands have tens of millions of pageviews per month to their website because they have created a community where people can find relevant content. A retailer can have hundreds of millions of pageviews each month. It is likely that Facebook fans are mostly in the middle of the curve so updates directed to them is good. The targeted nature of A and B moments make it likely that C moments will be needed to top off the reach the marketer desires. However, to my knowledge no marketer or agency has tried to measure the reach of A and B moments and so we do not know how much of C moment money is being wasted. To improve advertising productivity, this must be known. - See more at: http://blog.joelrubinson.net/2014/05/the-biggest-problem-with-the-marketing-funnel-is- Babelfish Articles May 2014 – July 2014 20-7-14 Page 102 that-it-leads-to-the-media-funnel/#sthash.Sv0RehOK.dpuf Marketing and Procurement go together like... May 26, 2014 Maarten Albarda Founder MLA Consulting LLC(Published first on MediaPost Online Spin on May 5, 2014) Recently the World Federation of Advertisers (WFA) released a report that updated research from 2011 on the status of agency remuneration by marketers. Soon there were many articles written about the fact that procurement is now in many instances the lead negotiator with agencies, with marketers playing a secondary role. Apparently this is bad -- really bad. Qualifications like “marketers take back seat” and “pencil and paperclip buyers control agency remuneration” were some of the kinder descriptions.
  • 103. I have to say I do not agree with how procurement is being pooh-poohed. I have dealt with marketing procurement in my last two jobs, and have frequently interacted with the WFA Sourcing Forum, the group that is dedicated to marketing procurement. Let’s start by saying there are good and bad ways for marketing procurement to be involved in the agency selection, remuneration and evaluation process. It would indeed be bad if the procurement people had no prior marketing experience or knowledge whatsoever, but I have rarely come across such cases. It would also be bad if their only focus was cost, as in cost-reduction. However, I have seen experienced media or creative agency managers on the client side joining the ranks of the procurement department. The fact that I am calling this functional area “marketing procurement” indicates complementary skills and responsibilities. Once you have such people on the procurement team, they can absolutely add value. In principle, they can help if you want to convince your senior leadership that you have made a wise choice for a new agency by finding better arguments then “their pitch was great,” “we felt like we had good chemistry with their team” or “the commercial they proposed really made us laugh.” If executed right, marketing procurement can help with structure, assessment rigor, impartiality and even role-playing (good cop/bad cop) in negotiations. I can honestly say that I have never had a bad meeting with the marketing procurement folks I have interacted with over the years. Some I even call -- gasp -- friends. The far-more-worrisome issue from the WFA research, which should have captured headlines, is the fact that only 11% of all marketers have an agency pay-for-performance remuneration model in place. In our book “Z.E.R.O.,” we have dedicated a whole chapter to compensation and remuneration. It’s a topic close to my heart, as I have worked at both agencies as well as advertisers, so I have seen the good, bad and ugly from both sides. The majority of advertisers rely on the fee-per-hour model, which I find shocking. And to add insult to injury, the majority of marketers only make 10% of their agency’s comp dependent on some form of bonus. For media agencies, the number one metric is “buying targets,” which means you’re incentivizing your media agency to chase “cheap” over anything else. Not smart. For digital agencies, the number-one bonus metric is more diffuse (I guess we have no idea how to incentivize them), but “sales volume” and “brand equity” seem popular. The first one I understand if you sell directly to consumers online. The second one feels like a cop-out (“well, we’ve got to measure something…”). There is clearly still a lot of room for improvement before we will do a better job of remunerating and evaluating our agency partners. Shoving marketing procurement off as “paperclip buyers in charge of agency remuneration” is not going to get us there. In Programmatic Integration, The Buyers Are In Front -- Again Babelfish Articles May 2014 – July 2014 20-7-14 Page 103 by Matt Prohaska , Friday, May 23, 2014 marketing funnel, path to purchase, programmatic, publishing, rtb, trading desk A recent trend has prompted me to preemptively say I was wrong about something. I have been claiming that while most of the industry buzz the past 18 months has been about the sales channel conflict with publishers, the larger drama is among the agency trading desks set up by the major holding companies -- some partly to take advantage of client fee “double dipping” as well as to leverage specific skill sets and platforms that provide a very different operational process and client benefit for programmatic buying vs. traditional IO-based buying.
  • 104. I thought the sales team integration between traditional digital sellers and these new “programmatic czars” would happen well before the traditional agencies and their trading desk siblings would come together. On the buy side, we’re talking about separate talent, budgets, and client objectives that would need to come together. And because of the financial motivations and organizational culture differences there, I thought publishers would get folks lined up sooner than entire companies shifting around, especially when there is some healthy tension, or at times animosity between a few agencies and their desks. If we look at the scoreboard today, I am behind in my prediction. I don’t know more than five or six decent-sized publishers in the U.S. that have truly integrated programmatic sales and operations into their overall teams yet. And two of those are “integrated” because they decided to eliminate their sales team altogether, so I’m not sure those count. Meanwhile, at least two of the six biggest major holding companies have begun the challenging but important and strategic process of cross-training their teams to integrate traditional and programmatic buying practices. And I’ll bet at least one of the others -- not including one major exception that has a very different business model -- will start by the end of this year. I was lucky to be asked to participate a few weeks ago with one of the desks, teaching programmatic to their traditional agency colleagues. It was great to see, if you’re a fan of the programmatic industry growing up, because this group was deeply engaged and picking it up very well. And it wasn’t because they are afraid of it, or angry because they think if they don’t learn it, they’ll be out of a job -- but because they know they are expanding their skill sets and making themselves more valuable to their company and clients. Many of us know that buyers got about a three-year head start in programmatic vs. sellers, partially because the ad-tech companies were more focused on providing buy-side tools. And now some buyers have a head start in providing a complete team and client solution, starting to take advantage of executing on Branding + DR, Upper + Lower Funnel, First + Third-Party Data, and Custom + Standardized. I don’t think the term programmatic will exist three years from now, since doing programmatic will just be known as “doing business.” The steps that the leaders at the two participating holding companies, agencies, and trading desks have taken put them in a great position to streamline their operation, improve their culture, and ultimately keep and win more business. I hope the publishers can start to catch up. Babelfish Articles May 2014 – July 2014 20-7-14 Page 104 The Fit of Apps & Websites in Mobile Shopping by Chuck Martin, Friday, May 23, 2014 europe, international, london, mcommerce, mobile, retail, uk The split between commerce through apps vs. reaching websites from mobile devices is likely to be around for some time. While app usage generally dominates smartphone activity across the board in most studies, for a number of obvious reasons, a lot of commerce from traditional retailers is coming from their websites accessed by a mobile phone. For overall retail, research often shows apps lead the way, though the stats may be somewhat misleading since much of the volume of retail sales come from online-only sellers. For example, the majority (52%) of mobile shoppers on eBay accessed the site via the app.
  • 105. However, mobile websites seem to be leading the rest of the mobile commerce activity, according to a recent study. In a sample of 1,300 people shopping at 13 U.K. retailers, mobile website visits far overshadowed those who use the retailers’ app, according to the study by ICM Research. For example, 22% of mobile visitors to Tesco came via the app compared to 56% from the mobile website and for John Lewis it was 11% via the app compared to 59% form the mobile website. The twist is that actual sales are more likely to take place via the app than by a mobile website, according to the study. This matters to companies like eBay, since 40% of new customers come via mobile and mobile-enabled Babelfish Articles May 2014 – July 2014 20-7-14 Page 105 sales hit $22 billion last year, according to ICM. Though this is only one study in one market, retailers everywhere are facing the same kind of dynamics. Though their apps may be the intended and desired way for retailers to interact with mobile shoppers, the merchants can’t force their customers to go that route. Despite promotions and incentives to download their apps, retailers face consumers who decide on how, when and where they want to use their smartphones to shop. The consumer is in the mobile commerce driver’s seat. 4 comments on "The Fit of Apps & Websites in Mobile Shopping". 1. Grant Bergman from SurveyConcierge.com • GrantBergman.com commented on: May 23, 2014 at 2:52 p.m. Aren't tablets – still on a rapid adoption curve compared to smartphones – having a big impact on these dynamics? Generally I prefer using my tablet's browser and avoid dedicated retailer apps, even those I've already installed. The reverse is true with my smartphone. And easily 95% of my mobile shopping is done on the tablet. 2. Misty Airhead from AB Mobile Apps commented on: May 23, 2014 at 3:05 p.m. It is interesting that more sales are made from the app customers than the mobile website. It will be interesting to see how deep linking will increase app usage and hopefully increase app purchases. Sincerely Misty www.ABMobileApps.com 3. Chuck Martin from Chuck Martin commented on: May 23, 2014 at 3:48 p.m. Yes, Grant, and purchase transactions on tablets are higher than those on smartphones, which has been documents by numerous studies. 4. Chuck Martin from Chuck Martin commented on: May 23, 2014 at 3:51 p.m.
  • 106. Good point, Misty, though it is generally easier via the app due to the data that can be auto-recalled. Babelfish Articles May 2014 – July 2014 20-7-14 Page 106 Pepsi's Mobile Strategy: It's the Content, Stupid Mary Lisbeth D'Amico | May 20, 2014 Bringing ads to mobile still means giving people something they want to watch, says Frank Cooper III, Pepsi's global chief marketing officer of consumer engagement. Pepsi may be the brand behind Michael Jackson, Beyonce, and Britney Spears, but mobile users today couldn't care less about that, according to Frank Cooper III, Pepsi's global chief marketing officer of consumer engagement. "People don't care about the history of your brand. Are you delivering something meaningful to them today?" Cooper said in his keynote speech, presented as a fireside chat, at the Mobile Media Upfront held in New York City this week. In the context of mobile users, that means one of two things, according to Cooper: providing compelling entertainment or useful information, depending on where the user is and what they are doing. In the entertainment category, Pepsi has always been ambitious. Brands should be asking themselves how to compete with the best entertainment out there, according to Cooper, instead of focusing on being a "pre-roll" advertisement ahead of a mobile video. "I want to be the video that people want to watch," he noted. Cooper cited Pepsi's new multi-channel World Cup-themed "Beats of the Beautiful Game" project as illustrative of this philosophy. Pepsi has produced an album of 11 original songs, from artists including Janelle Monae, Kelly Rowland, and R3hab, as well as 11 short films from big names like Spike Lee, Diego Luna, and Idris Elba. (The songs will be gradually launched on iTunes ahead of the album's release.) An interactive video, set to the tune of Monae singing David Bowie's "Heroes" and featuring soccer figures including Robin van Persie, David Luiz, Sergio Ramos, and Leo Messi, lets users click and change the story. There's also video content exclusive for mobile users as well as an app where they can play an augmented reality soccer game. "This is much more the model on mobile," Cooper said. "It should be less interruptive. If we can get the pre-rolls where people enjoy watching them," that could develop, he noted. Admittedly, few marketers have the kind of budget to take entertainment to this level. They may relate more to the second level Cooper mentioned, using mobile devices to provide useful information to users based on information about their location and needs. "You want to get the shopper in-store at the point of decision, not to interrupt them but to deliver something of value, whether it is a bit of information or a discount," said Cooper. Pepsi is experimenting with how to improve the mobile experience across the supply chain for its products by mapping the indoor retail space, he said, though he didn't provide details. But this is still just in the pioneering phase. Cooper said there's still a long way to go in mobile both on the data side (in making sense of the large amount of information that mobile phones give off) as well as changing the mindset of the media industry.
  • 107. "There's a whole ecosystem designed around TV. Agencies routed in TV lack the skill-set and mindset to operate in mobile. We are trying to push the change and a large part of that is trying to get more digital natives in-house," commented Cooper. He concluded: "You need to find people native to the space creating content and changing the way the brand moves in that space. Digital has to become the new center of gravity for the entire company." The Secret to Successful Storytelling Lies in the Golden Circle Babelfish Articles May 2014 – July 2014 20-7-14 Page 107 Aubrey Beck | May 22, 2014 Connect with your customers first by expressing the "why" of your story, the emotional side of things. Then, let them know the "how" and the "what" you do. This post was inspired by Simon Sinek's now famous TED talk in which he discusses how great leaders inspire action. The video has garnered more than 2.5 million views and is the second-most- viewed TED talk of all time. Start With the Why Simon Sinek, an ex-advertising executive and author, is perhaps best known for his concept of the Golden Circle. The concept revolves around the thought leadership and messaging approach utilized by some of the world's most exciting leaders and brands - the Wright Brothers, Apple, and Martin Luther King Jr. - which, as Sinek puts it, "starts with the why." According to Sinek, most people communicate by starting with the "what" they do aspect and eventually work their way back to talk about "how" and "why" they do what they do. However, companies that are universally identified as unique and successful communicate with an "inside-out" type of thinking, observes Sinek. They start with the why and only then do they move on to talk about the how and what portions of what they do. The Science of It All So, why does the order in which we communicate matter? It has to do with the parts of our brain that are engaged when we communicate different types of information. When we're talking about what we do, we're speaking to a rational and analytical part of the brain that's tied to language. But when we talk about the why and how, we're communicating with feelings and dealing with human behavior - gut decisions - that have no capacity for language. Dell and Apple Think about Apple under the leadership of Steve Jobs. Apple is really just a computer company, but people have never seen Apple as "just a computer company." In fact, Apple and Dell sell pretty similar products, but it's safe to say that the two companies are held in much different esteems in the public eye. We happily buy more TVs, music players, and all sorts of other devices from Apple because we're inspired by the story they tell. Let's compare the way Dell and Apple communicate with customers: Dell starts with the "WHAT"
  • 108. When you land on the Dell website it says, "Welcome to Dell!" From there, you choose from the "For Home" or "At Work" sections that tout "products designed specifically for home use" or "business and public sector products, services, and solutions." Babelfish Articles May 2014 – July 2014 20-7-14 Page 108 Apple starts with the "WHY" "Everything we do, we believe in challenging the status quo. We believe in thinking differently. We challenge the status quo by making beautifully designed products that are simple to use." Now which company do you want to buy from? With Dell, you're being sold a computer - end of story. But with Apple, simply by reversing the expected order of communication, the company is able to inspire us - to tap into a more emotional part of our brain where we make decisions based on feelings. And let's be honest, Apple just feels better than Dell. It's All About How You Frame It This Golden Circle approach to messaging can be applied to content marketing and marketing automation plans as well. Marketing automation tools rely on workflows - populated with emails, triggers, and various types of content - created for the purpose of moving consumers through a natural buying process. These workflows are designed by marketers who, in theory, have taken the time to understand buyer personas and pair appropriate content to the different stages in the buying cycle. The next time you're planning content - email copy, e-book titles, calls to action, blog posts, etc. - anything for a marketing automation flow, take time to think through the way you're choosing to tell your story. Connect with your customers first by expressing the why of your story. Tap into the emotional side of things - your mission statement, or reason for being - and begin to educate or build awareness from there. Let them know why you do what you do. Then, and only then, let them know the how and the what you do. Remember, people engage with inspiring and entertaining content and inspiring brands communicate from the inside out. Image via Shutterstock. When TV Is Obsolete, TV Shows Will Enter Their Real Golden Era BY MARCUS
  • 109. When I was in college, I went to see a seven-hour black-and-white Hungarian art house film, as one does. The movie, Satantango, included a 45-minute single-shot scene of a morbidly obese doctor in a rural village injecting himself with opium and passing out. Some of the movie was beautiful, and some of it was deadly boring. But I remember the mood in the theater, where people brought pillows, as giddy. We weren’t necessarily there for the movie itself, but the experience of seeing something that so aggressively broke the commercial norms of the genre. This wasn’t a movie in any traditional sense. It was something else. The half-hour sitcom? The hour-long drama? These are conventions that came into existence for reasons that don’t matter anymore. The same thing is about to happen with television. Streaming video as offered by Netflix and Amazon Instant Video are not constrained by any of the commercial or technical boundaries of traditional broadcast television or cable. There aren’t schedules. There aren’t channels. The only limitations are how much bandwidth their data centers and the internet itself can support. The half-hour sitcom? The hour-long drama? These are conventions that came into existence for reasons that don’t matter anymore. Soon, the conventions themselves won’t matter anymore, either. Welcome to the real new golden age of television — television without limits. “I don’t know how much longer the idea of a ‘season’ will be something that we feel like we need to adhere to in television. Even the idea of an episode,” House of Cards creator Beau Willamon told The Atlantic. In some ways, Willamon’s political drama on Netflix is the flagship of this new way of thinking about TV, a show created entirely outside the confines of broadcast and cable that became a must-watch part of the national conversation. Yet even House of Cards sticks to many of the standard conventions of TV drama: 13 episodes per season, each 50 minutes long. They even have spots for commercial breaks, Willamon says, for when the episodes are re-broadcast on regular TV in international markets. Babelfish Articles May 2014 – July 2014 20-7-14 Page 109
  • 110. But he’s eager to push against those limits. “I’ve toyed with the idea for a show that doesn’t have episodes at all,” Willamon says. “That would simply be one eight-hour stream for a season, and the viewer decides when they want to pause, if at all.” Babelfish Articles May 2014 – July 2014 20-7-14 Page 110 Infinite Channels It’s a little ironic that this change is coming now, when, in the wake of The Sopranos, television has become so good. Just as reality TV began to take over the broadcast networks in the mid- 1990s, HBO arrived to say a different way was possible. Quality could be a growth model. Since then, sleepy cable backwaters such as FX and AMC have become powerhouses of original programming by following the model HBO pioneered with The Sopranos. Shows like The Shield, Mad Men, and Breaking Bad may not have generated ratings as high as the latest incarnation of those generic CBS crime dramas. But they became deeply relevant parts of the conversation — and, in some ways, you might even call then important. Bruce Springsteen back in the early 1990s sang, “57 Channels (And Nothin’ On).” Today, it’s more like 600. The reason for the embarrassment of riches on television today is pretty easy to grasp, and not that different from what will make the next, even more powerful iteration of TV possible. Cable just keeps adding more channels. Bruce Springsteen back in the early 1990s sang, “57 Channels (And Nothin’ On).” Today, it’s more like 600. To distinguish themselves in this void, a few courageous executives said: “Let’s set ourselves apart by making shows that are, you know, good.” As it turns out, the entertainment industry has plenty of people that, with the right financial support and creative freedom, can make awesome stuff year after year. Now imagine when the number of channels becomes infinite. A useful comparison to consider is radio since the birth of the podcast. Unlike TV, the barrier to entry for a podcast is pretty much the price of a digital audio recorder and an internet connection. As a result, the podcast as a genre unto itself has taken off much faster. Without the time constraints imposed by broadcasting over an individual frequency, podcasters have invented a kind of radio without limits. They broadcast whatever they want for as long as they want, and listeners can hear it whenever they want. The freeing effects of podcasting have created genuine stars of the genre, such as Marc Maron, and full-on production companies, like the Earwolf alt-comedy empire. The Power of Netflix But the success of podcasting isn’t just about the ability to post digital audio online. It’s about the centralized platform for distribution iTunes provides to attract a large audience and surface quality content. In the same way, the expanded future of television depends on more than the technology to distribute video online. Netflix has also shown a willingness to put significant money behind programming as original as anything on traditional television. It takes a platform like Netflix to consolidate an audience and underwrite the production of new forms and approaches. Netflix has already displayed a desire to break with convention in releasing all episodes of a “season” at once. With shows like the latest season of Arrested Development and House of Cards, it has also shown a willingness to put significant money behind programming as original as anything on traditional television. But how much convention-busting creativity can Netflix afford to get behind? When technology makes previously existing limitations moot, the only limit on what you can do becomes money. And for now, that appears to be a serious constraint.House of Cards reportedly had a budget of
  • 111. $100 million — or nearly all of Netflix’s profits for 2013. One more show like that would leave Netflix in the red. At the same time, a bigger investment by Netflix could mean a bigger reward, and experimenting with something new could make that reward even bigger. Netflix’s impressive subscriber growth last year followed on its biggest push to date into original content. If that content deserves most of the credit for that increase in interest, then Netflix has tapped into a potentially virtuous cycle that broadcast television and even non-premium cable can’t quite match. As long as Netflix keeps making shows that attract more subscribers, it has more cash flow to make more. And if its best shows are any indication, we all might be lucky enough that the stuff subscribers want to watch is actually what’s good. Babelfish Articles May 2014 – July 2014 20-7-14 Page 111 Pay As You Go It’s even possible to imagine a pay-as-you-go model, in keeping with Willamon’s vision of a few hours released here and there throughout the year. In a variation on crowdsourcing, maybe Netflix could set subscription goals: Add so many new signups, and new episodes get produced. If something like that comes to pass, it would be seen as innovation. But it would also be returning to a business model that precedes television altogether. The serial was once a standby of movies, and of novels before that. After all, what are Dickens’ novels but collections of episodes that, when they first came out, were released serially? We can see if episodes or seasons are conventions that viewers still care about. The serial saw a seeming resurgence not that long ago with the popularity of Lost, a rare creative hit for broadcast TV. But picture Lost constrained only by the interest of viewers willing to pay more for more shows. Maybe viewers will resist changes to the formulas that have become so familiar that they’re no longer questioned. But the brilliant opportunity presented by television not limited by time or channel is that now technology has served up the chance to ask the question. If Netflix or someone with similar resources is willing to take the risk, we can see if episodes or seasons are conventions that viewers still care about. And because we can all so easily vote with our dollars, the makers of TV will know quickly what’s working and what isn’t. In a way, platforms like Netflix make possible the same kind of iteration in TV that has driven computing tech forward so quickly in the internet age. If TV changes as much as the web has in the past decade, the stuff today’s iPad-addled kids watch by the time they’re adults might look nothing like what we call television at all. The age of Internet ubiquity has arrived. The world is moving beyond standalone devices into a new era where everything is connected. We've created a slideshow highlighting the key trends and forecasts for the entire Internet-connected ecosystem, including connected TVs, connected cars, wearable computing devices, and all of the consumer and business tools that will soon be connected to the "Internet Of Things." Read more: http://www.businessinsider.com/the-internet-of-everything-2014-slide-deck-sai-2014- 2?op=1#ixzz32A3oqWWn The Internet of evrtything: 2014 Tony Danova May 17, 2014,
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  • 160. Acxiom Acquires LiveRamp, Wants To Build 'Neutral' Audience Grid Anyone Can Plug Into Babelfish Articles May 2014 – July 2014 20-7-14 Page 160 by Joe Mandese, Thursday, May 15, 2014 In a sign of just how important plumbing has become in Madison Avenue’s shift toward data-driven advertising, media and marketing decisions, Big Data’s big daddy, Acxiom, Thursday announced a deal to acquire one of the best plumbers in the business -- data “on-boarder” LiveRamp -- for $310 million. The deal has implications for marketers, agencies and an array of third-party data and data application providers, because Acxiom is betting that frictionless connectivity will enable any and all industry partners to facilitate the exchange of data -- and methods for using it to better understand and target consumers. “If you believe the future is all about connectivity, then we have to allow our clients to plug into the grid more quickly,” Acxiom CEO Scott Howe tells MediaPost, adding that the goal of the acquisition is to create a neutral “Switzerland-like” state for any client, agent, data or application provider to plug in or out of the grid. Howe says Acxiom and LiveRamp already have been working together for years, but that the impetus for the merger was the launch of Acxiom’s so-called Audience Operating System (AOS) late last year -- and the fact that clients have been lining up to use it, but have had a difficult time integrating it into their data management systems. While that’s the primary goal of the acquisition, Howe said another key element is the ability to plug any third-party developer into the AOS so that clients can more easily decide how to apply data processed through the system. When it launched AOS in September, Acxiom included some
  • 161. homegrown apps enabling clients to immediately use it to target audiences more effectively across media, but the goal was always to facilitate an open and neutral marketplace for other developers. To date, Howe estimates Acxiom has integrated about 30 third-party applications into AOS, and that the integration with LiveRamp will bring another “80 to 100” third-party apps into the system. The more utility that clients, agencies and media can glean from audience data managed through AOS, Howe says, the more value it will create for them, their data and application partners -- and Acxiom, of course. The initial reaction of Wall Street analysts has been that the deal is a visible public acknowledgement of a “softer-than-expected” ramp-up of AOS and that Acxiom is paying dearly to accelerate that process. “While we continue to believe that AOS is a great product with unique feature sets, it is one of several platforms that aims to solve similar business challenges for advertisers and publishers,” BMO Capital Markets analyst Daniel Salmon writes in a note to investors, implying that Acxiom is not alone in its pursuit of the apocryphal “Holy Grail” of marketing data integration. Other Big Data players such as Experian and Epsilon have similar pursuits, as does Madison Avenue’s most entrenched plumber, agency data processor Mediaocean. At the same time, a variety of enterprise management players -- everyone from Adobe to Oracle to Salesforce.com -- have aggressively acquired marketing data and service providers to create their own “marketing cloud” solutions, and each of them claim to be neutral, open and eager to integrate other third parties. “Relative to the other folks in the business who might want to do this, we have no bias coming into this,” says Howe, adding: “We are truly agnostic. We don’t drive people to one marketing stack. We don’t have a media business. We don’t have an agency business.” In fact, Howe says neutrality has been a long-term mantra of both Acxiom and LiveRamp prior to the deal, and while it won’t close for some time, he and LiveRamp CEO Auren Hoffman have already begun to discuss strategies for accelerating industry acceptance around a neutrality standard, including the possibility of retaining independent auditors to review their systems and processes to “certify neutrality.” “We’re kicking the idea around,” says Howe, likening the concept to other industry standards, such as the IAB’s online ad format guidelines, which enable competitors and collaborators alike to organize their approaches to the market around a common framework. “We’re starting to think about what are the standards we’d like to see, can we create a new standard for neutrality,” Howe says, adding that he’s open to other industry players to step forward and collaborate on it. Programmatic Advertising To Gobble Up Even More Ad Budgets - Report Babelfish Articles May 2014 – July 2014 20-7-14 Page 161 5/15/2014 @ 9:00AM 848 views The use of data-driven software to automate online advertising, already a fast-growing phenomenon known as programmatic buying, is on the cusp of taking over the way most digital ad budgets are spent. That’s according to a new survey of more than 400 marketers, ad agencies, publishers, and ad tech firms released this morning by AdExchanger, a publishing and now research company focused on tech-driven digital advertising. Compared with the traditional (and rapidly declining) method of people arranging ad deals with individual publishers by phone, fax, email, or perhaps even three-martini lunches, programmatic methods allow for more efficient spending on highly targeted audiences across a wide variety of media.
  • 162. Right now, the majority of marketers are managing at least 20% of their ad spend programmatically, but almost two-thirds plan to spend double that much this way over the next 12 months. And a quarter of marketers plan to spend at least 80% of their budgets programmatically. “Marketers are already spending a lot on programmatic media and expecting strong growth,” Joanna O’Connell, AdExchanger’s director of research and a former Forrester marketing analyst, said in an interview. Agencies are stepping it up even more. Currently more than two-thirds of agencies use automated ad buying for at least 20% of their budget, and more than a third are up to at least 60%. Almost half plan to get to 60% by 2015. Those are pretty impressive stats. There’s a caveat, says O’Connell: These are self-reported numbers, and many of the marketers and agencies responding are likely more on the leading edge of new ad technologies than most. A lot of marketers, agencies, and publishers remain wary that the technologies for various reasons, so the reality in 2015 may or may not meet the intentions. “But you can glean the level of excitement” about programmatic, she says. Programmatic buying is used by marketers for banner or display ads more than any other ad type, with 96% of marketers using programmatic to buy display. (You could argue that search is really programmatic and it’s certainly automated, but unlike display, it always has been, and it’s usually done separately.) But they’re also using it for video (73%), mobile (64%), social such as Facebook (55%), and even Connected (that is, Internet-connected) TV (16%). O’Connell says it may not be too awfully long before buyers of traditional TV ads think about using the method, as ABC recently suggested. Direct marketers, those that want to elicit an immediate sale or at least generate a sales lead, still dominate the use of programmatic buying, but O’Connell says brand marketers traditionally interested in image advertising have gradually gotten onboard. “In the last couple years, you’re seeing more and more brands spending through programmatic,” she says. Most of the ads are bought and sold through open ad exchanges such as those run by Google GOOGL -1.02% and Yahoo YHOO -1.11%, which act as a sort of stock exchange for ad space. Some 60% of marketer ad budgets go through these exchanges, according to AdExchanger. But marketers and agencies want more control over where and how the ads are run, because too often ads run on dodgy sites or aren’t even viewed by real people because they appear far down on a page or even are counted as being viewed even though an automated “bot” was the only entity to see them. Indeed, even a fifth of publishers themselves cite a lack of quality ad space as the key obstacle for the further growth of programmatic buying. “There’s an appetite for more quality inventory,” O’Connell notes. So marketers are looking to private marketplaces as well as arranging guaranteed placements programmatically, the latter to date dominated by people-brokered deals. Marketers in the survey expect to spend almost half their programmatic budgets in private marketplaces and guaranteed buys in the next year. There’s a lot more in the 69-page report on the varying ways marketers, agencies, and publishers are dealing with the disruption programmatic buying has wrought. While programmatic has clearly hit its hockey stick period of growth, there’s still a lot missing from the programmatic algorithm, the report concludes: “In the coming year, we expect to see continued diversity in deal types, a wider range of programmatically available ad formats, ongoing shake-ups in the form and structure of agency/client engagements (and compensation models) and a renewed focus on the value of Babelfish Articles May 2014 – July 2014 20-7-14 Page 162
  • 163. smart, meaningful, beautiful creative, which largely has been neglected from the programmatic conversation.” IComprehensive Survey Reveals Majority of Marketers to Spend At Least 40 Percent of Digital Media Budgets Programmatically by 2015 Babelfish Articles May 2014 – July 2014 20-7-14 Page 163 15 May 2014 AdExchanger Report Examines State of Programmatic Through Lens of Marketers, Agencies, Publishers and Tech Vendors NEW YORK – May 15, 2014 – A comprehensive new survey of marketers, agencies, publishers and technology vendors by AdExchanger Research reveals a strong, positive outlook for programmatic media over the next 12 months. This report marks the launch of AdExchanger Research, a new practice designed to provide thoughtful analysis on the digital media and advertising ecosystem, and support to marketers navigating the digital landscape. The report titled, “The State of Programmatic Media,” contains insight from more than 400 members of the digital advertising community. Programmatic Spending and Management: Marketer spending on programmatic advertising is strong and growing. Over the next twelve months, the majority of marketer respondents (66 percent) plan on spending almost half (40 percent) of their digital media budget programmatically, while a quarter of marketers plan on doing so for at least 80 percent of their budget. Currently, the majority of marketer respondents are managing 20 percent or more of their media programmatically, with nearly half managing 40 percent or more of their digital media budget this way. Agencies are investing heavily in programmatic as well. More than two-thirds of agency respondents are currently managing at least 20 percent of their digital budget programmatically, and more than a third are managing at least 60 percent. Nearly half plan on managing at least 60 percent of their total digital budget programmatically within the next 12 months. “Programmatic has evolved far beyond real-time bidding. It is enabling marketers to deliver the most relevant advertising experiences to consumers,” said Joanna O’Connell, Director of Research at AdExchanger. “Programmatic has become an accepted way of conducting business helping streamline operational processes along the way. I am pleased to see it on the rise and being embraced by those across the entire digital advertising ecosystem.” When asked which media channels are being managed using programmatic methods, display continues to dominate with adoption by 96 percent of marketers surveyed. However, at least a portion is being managed programmatically across the following channels as well: • Video (73 percent) • Mobile (64 percent) • Paid social (55 percent) • Connected TV (16 percent) According to the survey, marketers are currently spending most heavily through open exchanges, allocating more than 60 percent of their current programmatic budgets to such environments. However, private marketplace and guaranteed programmatic deals will become increasingly
  • 164. important in the near future. Surveyed marketers expect to spend almost 50 percent of their total programmatic budget across private marketplaces and programmatic guaranteed buys over the next 12 months. Babelfish Articles May 2014 – July 2014 20-7-14 Page 164 Benefits, Challenges and Divergences: According to marketer respondents, “audience targeting” and “improved ROI” are key benefits of programmatic, while agencies and publishers lean more heavily toward “operational efficiency.” As for key challenges, marketers, agencies and publishers all point to “inventory quality issues” and “market complexity” as major obstacles facing programmatic. The study reveals marketers and agencies diverge when it comes to service and technology models. Marketer respondents strongly favor “direct to platform” service models, with a nearly even split across self-service (27 percent) and full service (25 percent) approaches to programmatic media management. Marketers also favor a single platform relationship, with more than 40 percent of marketers surveyed relying primarily on a single general demand side platform (DSP). Meanwhile, more than half of agencies lean toward self-service and are much more frequent multi-platform users, with the majority of respondents using either a single general DSP with multiple channel-specific DSPs, or multiple general DSPs to manage programmatic buying. About the Study: AdExchanger conducted “The State of Programmatic Media” survey online from January-March 2014. Survey participants include 44 marketer respondents, 99 agency respondents, 97 publisher respondents and 178 tech vendor respondents. The report is available for purchase on AdExchanger Research by visiting research.adexchanger.com Ibope aumenta a amostra e só a Globo perde audiência POR FOLHA 12/05/14 02:00 A Globo não deve estar feliz com as recentes mudanças na amostra de audiência do Ibope. O instituto intensificou neste ano o aumento no número de domicílios participantes da medição de audiência em TV. As mudanças na pesquisa, mais acentuadas em São Paulo, coincidem com a queda de audiência da Globo no ano, o único canal a perder público na região. Em São Paulo, o número de domicílios com peoplemeter (aparelhos que aferem audiência) passou de 800 (dezembro/2013) para 930 (até abril) e deve chegar a mil neste mês. É justamente nesta região que a Globo perdeu 8% de seu público, passando de 14,3 pontos (média diária de janeiro) para 13,1 (média diária de abril). Cada ponto equivale a 65 mil domicílios na Grande São Paulo. No período, a Record viu a sua audiência subir 27%. O SBT cresceu 20%, a Band, 30%, e a RedeTV!, 23%. Até junho, o Ibope deve passar de 4.500 para 4.880 o número de peoplemeters instalados no país. O investimento do instituto coincide com a chegada de um concorrente na medição de audiência: o alemão GfK. Segundo o Ibope, a ampliação da amostra segue rigorosos padrões de qualidade para assegurar que a implantação não crie nenhum viés nos índices de medição de audiência.
  • 165. Próximos Duas pessoas almoçando juntas, na semana passada, na Globo, chamaram a atenção dos presentes. Os diretores de núcleo Boninho e Ricardo Waddington, que passam longe de ser amigos, dividiram a mesma mesa na central de estúdios da emissora, o Projac, no Rio. Próximos 2 Havia mais pessoas no almoço com a inusitada dupla, e muitas outras ao redor querendo escutar o assunto que reuniu os dois. Fila Começa a ser gravada hoje no Rio “Boogie Woogie”, a próxima novela das 18h da Globo. Sangue A Prodigo Films já está escrevendo para o canal A&E a nova temporada de “Até que a Morte nos Separe”, série de documentários sobre crimes passionais. Memória Coprodução da Record com a Contém Conteúdo, “Caymmi e o Mar”, documentário sobre a vida e a obra de Dorival Caymmi, já está na fase de captação de depoimentos dos filhos do artista. Memória 2 O especial, em homenagem ao centenário de nascimento de Caymmi, irá ao ar no final do ano. Saudade A pedido do público, o “Superpop”, da RedeTV! vai retomar quadros antigos que fizeram sucesso no programa. Saudade 2 A partir de hoje, a atração de Luciana Gimenez traz de volta “Vai Encarar?”, “Porta da Fama” e “Na Mira da Mídia”. O ator Alexandre Frota e os deputados Marco Feliciano (PSC) e Paulo Maluf (PP) negociam participação no programa. ABC Edges Toward Programmatic in Test of Data-Driven Buying for Digital Video Won't Involve Real-Time Bidding or Open Exchange Babelfish Articles May 2014 – July 2014 20-7-14 Page 165 By Jeanine Poggi. Published on May 13, 2014. 0 The IWNY festival is an annual celebration of technology's impact on business and culture. This year's festivities will take place from May 19-25 and will attract more than 45,000 business professionals, working across all sectors, attending 250+ events produced in the IWNY HQ and 150+ organized by citywide event partners. ABC plans to begin testing a new level of data-driven ad sales for its online video inventory this summer, according to the network, in the latest step by TV networks toward programmatic ad selling and buying. The new trial won't include staples of programmatic tech such as real-time-bidding and open exchanges, and it won't include commercial time on TV. Instead the near-term goal is to let advertisers apply data to their purchases in ABC content, something that has been difficult to do, and move toward some of the automation that is common in digital ad sales. ABC also wants to modernize and simplify workflows by moving away from the faxes and emails that are still used when making TV buys. The test will offer long-form and short-form digital video inventory from ABC entertainment and news programming, as well as sibling cable network ABC Family, to select upfront advertisers as part of the trial. Geri Wang, president of ABC Sales, planned to announce the test during the network's upfront pitch to advertisers in New York City on Tuesday afternoon.
  • 166. ABC typically can't identify digital video inventory that matches the increasingly precise targets marketers are seeking based on their own data, meaning advertisers can only get audience guarantees based on age and sex. The trial will attempt to improve on that system with new tools and data from Freewheel, an ad-serving platform acquired by Comcast earlier this year. ABC will be the first media company to offer video inventory through a new Freewheel product called FourFronts Programmatic, which connects ad sellers' inventory systems with ad buyers' demand-side platforms. The partnership will let ABC identify targeted inventory in real time and deliver those impressions to advertisers, ABC said. Freewheel's platform is designed to apply data to TV content without sharing marketers' proprietary data with the network, according to Jon Heller, co-founder and co-CEO of Freewheel. It can also ensure "competitive separation," he said, preventing rival marketers from running ads near each other. The offering will be limited to "reserved" inventory, meaning clients will need to commit ahead Pooja Midha, senior VP-digital sales and operations, ABC, said the network is testing the program on highly desirable inventory, not remnant time it can't otherwise sell. ABC will be able to garner higher ad rates by virtue of offering better targeting, she said. Freewheel will make its tools available to other media partners in the future. While the test could be an important step in applying data to media buys, there's still a hesitancy in applying programmatic ad sales technology to traditional TV. When asked if ABC could apply Freewheel's tools to TV in the future, Ms. Midha said the focus right now is on digital inventory. In the world on online display ads, where there is a plethora of inventory, programmatic technology has become an important part of the battle for ad dollars. But for TV, where inventory is much more limited, especially on the Big Four broadcasters, and networks are still able to garner price increases in the upfront marketplace, there's less incentive to experiment with programmatic technologies that could loosen control over pricing and who advertises. All the same, some networks are starting to take early steps in this year's upfronts. NBC Universal president of ad sales Linda Yaccarino said last month that the network group is prepared to sell a small amount of TV inventory programmatically in a private exchange. That will only be made available for select clients on an individual basis. Babelfish Articles May 2014 – July 2014 20-7-14 Page 166 Best Practices for Branded Vine Videos Kristin Kovner | May 13, 2014 Learn five practical methods for successfully engaging with consumers through research, crowdsourcing, branded content, customer evangelism and customer service. And last year A&E Networks, among others, joined a consortium led by IPG Mediabrands' Magna Global to create a programmatic planning approach meant to help clients to buy TV more intelligently.While marketers are embracing the trend of short-form branded videos on Vine, many of their efforts are not as successful as they could be. Here are five tips for producing the best branded Vine videos. By the time you read this, you'll be gone. Just kidding - sort of. Recent research from the University of Hamburg and the University of Hannover found that more than 50 percent of Internet
  • 167. users remain on a Web page for fewer than 10 seconds. With the rise of Instagram Video, Snapchat Stories, and six-second Vine clips, 10 seconds may be optimistic. As marketers build their media plans, dollars continue to shift to content - especially short-form "micro-content" designed for social media channels. According to the Content Marketing Institute (CMI), content now represents 30 percent of the average marketing budget, and 58 percent of B2B marketers plan to increase their content production spend this year. The adoption's there, but the confidence isn't. While 87 percent of marketers use social media to distribute their content - a whopping six platforms, on average - fewer than 25 percent of marketers say their efforts on Instagram or Vine were effective, according to the CMI. Here, a look at five best practices for creating successful short-form branded videos for the likes of Instagram, Snapchat, and Vine: Babelfish Articles May 2014 – July 2014 20-7-14 Page 167 1. Make Them Laugh Nielsen polled more than 29,000 Internet users in 58 countries to measure consumer sentiment across 19 forms of paid, earned, and owned media. Forty-seven percent of global respondents said humorous ads resonated most. Tide got moms and teens alike laughing with its Halloween campaign, spoofing famous moments from scary movies, including Carrie, Poltergeist, and The Ring. 2. Teach Them Something Back in 2011, the content most likely to be shared was informative or how-to in nature, according to a study my team at AOL commissioned with Nielsen. Turns out the same still holds true. Lowe's proved six seconds is more than enough time to impart wisdom with its "Fix in Six" campaign, which shares more than 50 tips and tricks for home improvement, including this one for removing a stripped screw. The campaign recently won the 4A's O'TooleBox Award and the videos have been shared tens of thousands of times. 3. Embrace the Medium Snapchat posts are ephemeral. Vine videos repeat. Success in this short-form environment requires understanding the formats' limitations and using them to your brand's advantage. Taco Bell recently used Snapchat to announce the newest flavor for its Doritos Locos Tacos, premiering the first-ever "Snapchat Live Film," through Snapchat Stories. Taco Bell released bits of the film throughout the day, ending with the flavor's reveal. Samsung is similarly successful in embracing the medium with this fun piece, proving that a well-executed Vine ending can be just another beginning. 4. Invite the Crowd GE sparked international engagement last August with its Vine-based "6-Second Science Fair." More than 600 users submitted entries for the Web-only science fair, building buzz for goodwill for GE as a curator, as well as sparking conversation around innovation, a key theme for GE. 5. More Is More The campaigns above all have something in common: they were campaigns, not one-offs. Each vignette is part of a series, driving further user engagement and telling a story that goes beyond the six-second piece itself. With short-form content, the whole is greater than the sum of its parts. The Sports Network, Yahoo & Twitter to Keynote at ClickZ Live Toronto
  • 168. ClickZ Live Toronto (May 14-16) is bringing together some of the leading experts and thought leaders in Canada to deliver an agenda focused on customer engagement, mobile marketing, PPC best practices, multi channel attribution, search strategy and more. Babelfish Articles May 2014 – July 2014 20-7-14 Page 168 Register today! Kristin Kovner is a digital marketing, technology, and media industry veteran. Her firm, K-SQUARED STRATEGIES, helps high-growth media and tech companies develop and execute best-in-class marketing strategies. Prior to opening her own consultancy, Kristin served as the Vice President of Marketing Strategy at AOL, where she managed the AOL and AOL Advertising brands and set and executed the go-to-market strategy for AOL's owned and operated websites, including AOL.com, Moviefone, MapQuest, Engadget, and The Huffington Post. Prior to joining AOL, Kristin served as the Head of Industry Marketing for YouTube and held various roles on Google's marketing team. Kristin has also worked as a journalist for Newsweek and SmartMoney, The Wall Street Journal's magazine, and as an economic consultant at Bates White LLC. Kristin graduated Phi Beta Kappa and Magna Cum Laude from Yale College and currently lives in New York City. Radian6 and Buddy Media United as Social Studio Susan Kuchinskas | May 6, 2014 The mash-up of Salesforce marketing automation acquisitions aims to unify social media marketing. Some industry watchers looked askance at the multi-billion dollar acquisition spree that brought Radian6, Buddy Media, and ExactTarget to Salesforce, fearing the company was creating a marketing software Frankenstein. Today, Salesforce unveiled an integration of the three companies that it says will give marketers a single platform for social content marketing, engagement, publishing, and analytics. As part of the Salesforce ExactTarget Marketing Cloud, the new platform, dubbed Radian6 Buddy Media Social Studio, aims to replace point solutions while unifying what Altimeter Group says may be as many as 131 social channels in an enterprise. The new product includes collaborative workspaces and calendars, content creation and scheduling, integrated engagement monitoring, and enhanced analytics that can monitor content performance by label, campaigns, or any particular target. It also includes a mobile version, so that marketers never have to stop marketing. Gordon Evans, vice president of product marketing for Salesforce ExactTarget Marketing Cloud, says the new platform addresses four major social media challenges faced by marketers: proliferation of point solutions; organizing and managing teams, especially for global companies; finding engaging content to distribute; and engaging with consumers on a large scale. The problem, he says, is, "As you grow, how do you ensure you have all of your global brands in sync, all the regions in sync, the right permissions in place?" The new platform lets users set up macros to handle one-click labeling, tagging, and sentiment scoring of social media posts, so that they can identify and automatically route posts that need to be responded to individually. They can set up rules governing content in order to automate the listening side, as well.
  • 169. Radian6 Buddy Media Social Studio is an open platform that lets developers, independent software vendors, customers, or partners build their own applications on top of it. The platform is launching with several vendor partnerships that the company says will make it easier for marketers to discover content. They are Getty Images, Kontera, Nexgate, Pressly, Rallyverse, Shutterstock, ShopIgniter, and TrendSpottr. Marketers still need to set up licenses with individual partners before accessing them via the platform. "We're making it easier for marketers to identify great content, including trending content from the Web, and to connect their digital asset libraries to the product," Evans says. Salesforce noted that several key customers will use Social Studio, including Citrix, Cisco, and JetBlue. The platform is generally available and free to current customers of Buddy Media, ExactTarget, or Radian6. New customers can subscribe starting at $1,500 per month, a cost that Evans says should be comparable to or more cost-effective than individual subscriptions to the stand-alone services. Customers already using Salesforce ExactTarget Marketing Cloud can simply have the Social Studio capability turned on, but customers can also use it without using the Marketing Cloud. Over time, Evans expects that Radian6 Buddy Media Social Studio will completely replace the individual products. But not their names, evidently. What's with the clunky nomenclature? Says Evans, if you're a marketer, "Those names have a lot of meaning to you. Those companies pioneered the space and are well-known brands in the social marketing arena." Last week, Oracle outlined its own vision for Oracle Marketing Cloud, while Adobe continues to upgrade Adobe Marketing Cloud. Will there be more acquisitions this year? Análise: pelo crescimento da indústria digital no Brasil, mais educação, por favor POR JULIO ZAGUINI Diretor de relacionamento com agências, Google Brasil Além do papel do governo e das universidades, é preciso construir melhores pontes entre educação e trabalho. A velocidade de inovação e mudança é tão alta que demanda o compromisso e a colaboração de todos os atores do ecosisstema A pesquisa "A escassez de talentos 2013", da Manpower, revela que a falta de talentos afeta uma em cada três empresas mundialmente. Se esta é uma tendência comum a vários países, o Brasil, segundo da lista com maior escassez de talentos no mundo, sofre ainda mais. E essa é uma realidade que a indústria digital encara de perto. Muitos de vocês dirão que antes de especialistas digitais o Brasil precisa de médicos, professores, engenheiros - e vocês estão certos. Mas isso não é desculpa para ignorar o que está acontecendo na indústria digital: hoje, este mercado contribui com cerca de 2,5% do PIB brasileiro e está crescendo a taxas astronômicas —nos últimos anos, só a publicidade online cresceu 30% ao ano. E segundo a PwC, o Brasil é um dos oito países que irá registrar maior crescimento no segmento nos próximos 5 anos. Mas talvez a razão mais importante é o peso que a Internet tem como motor de inovação, crescimento e produtividade. A web tem gerado novos modelos de negócios, oportunidades de emprego e transformou a maneira como nossas sociedades se comunicam, aprendem e vivem. Segundo a OCDE, "o nível de inovação em uma economia está diretamente relacionado com a capacidade que ela tem de fornecer competências de alto nível". Babelfish Articles May 2014 – July 2014 20-7-14 Page 169
  • 170. E esse desafio envolve todos nós. Além do papel do governo e das universidades, é preciso construir melhores pontes entre educação e trabalho. A velocidade de inovação e mudança é tão alta que demanda o compromisso e a colaboração de todos os atores do ecosisstema. Um exemplo interessante é a iniciativa "College to Careers" da Prefeitura de Chicago, nos Estados Unidos. O programa faz parte da estratégia de desenvolvimento econômico da cidade e é resultado de esforços conjuntos entre os setores público e privado. Procura fornecer aos estudantes educação adequada para ocupar empregos nas indústrias de alto crescimento, que até 2022 gerarão 500 mil novos empregos em Chicago. No Brasil, marcas e agências procuram profissionais de marketing com conhecimento em digital e algumas empresas já estão chamando a responsabilidade para si com treinamentos e ações que ensinam e incentivam jovens talentosos a entrar neste mercado. A Netshoes, por exemplo, tem desenvolvido a "Universidade Corporativa Formação Netshoes" como resposta à carência de profissionais e necessidade de reconhecer, qualificar e aperfeiçoar as habilidades em e-commerce. No Google, nós também levamos a sério esta tarefa. Além dos eventos Think, a iniciativa Google Expert Day e a parceria com Sebrae, entre outros programas, estamos promovendo o Desafio Global de Marketing Online, uma competição global para treinar e premiar estudantes de Ensino Superior que criem as melhores campanhas de AdWords para promover uma empresa real ou ONG. Chegou a hora de agir. O primeiro passo é identificar o problema, e isto já fizemos. De acordo com a pesquisa Global Innovation Barometer da GE menos do 50% dos executivos brasileiros dizem ter confiança no sistema de Ensino Superior para preparar os inovadores do futuro e este índice diminui ano após ano. Agora, é o momento de começar a construir a solução. O que estamos esperando? Não tiremos nossa responsabilidade. Nunca é tarde para começar. Native Advertising Could Feel Right At Home On Smaller Screens Babelfish Articles May 2014 – July 2014 20-7-14 Page 170 by P.J. Bednarski, May 13, 2014 advertising, marketing/branding/advertising, native advertising, online video, yahoo It gets a little pointless to mark trends in online video. It’s still an awfully new business so that what you might want to call a trend is really just evolution. Yahoo, for example, just announced new native advertising properties for mobile devices, which would seem to be hitting two evolutionary birds with one stone. Not only is the mobile platform becoming the first-screen consideration for many publishers and advertisers, native advertising is becoming, if not the preferred way to sell, then at least one of the preferred ways to go. It’s so new that “native advertising” doesn’t have very uniform definitions. You might want to say, “I’ll know when I see it,” but it seems that the hidden ideal is to not to know it when you see it. At the recent NewFronts, The New York Times did slow down its presentation a bit to explain that its paid content will really, really look like paid content, but then, that’s The New York Times. Other sites, other advertisers aren’t likely to be so obvious. As online advertising and content grows and merges into one—as Hulu’s collaboration with Chipotle’s did with “Farmed and Dangerous” –how it plays with advertisers and viewers will spell how it will progress.
  • 171. You’ve got to give consumers some credit for knowing when they’re being sold. Consumers must now be learning that all of life itself has become a stage for native advertising. There’s no free lunch. Never, ever. Native does play well with a mobile advancing world, too. Though mobile users are apparently not averse to watching longer content on mobile units, small bursts of content obviously should have appeal. If you pair content with native advertising in one swirl and you’ve got a business. Yahoo, which says half of its traffic is now coming from smartphones, is ready to get in the business of selling native on mobile, with a look and a feel that will seem enough like editorial to be agreeable to the eye and ear, and just distinct enough that a finicky, discerning consumer can tell what’s going on. Ditto, Evolve Media which is touting theFashionSpot.com and Momtastic’s Cover Story products that, it says in its announcement story “greets women with a full screen welcome content experience featuring videos and native beauty-themed editorial that integrates the launch sponsor organically within the unit. The Cover Story acts as a fully integrated brand campaign combining a social media amplification strategy supported by branded pre-roll and display advertisements.” Babelfish Articles May 2014 – July 2014 20-7-14 Page 171 You wonder where this will all go. SHOW & TELL: You will hear a lot of people tell you that Europe isn’t like the United States, and of course that’s true and obvious. And yet sometimes, a visual example of the differences tells the story much better than words can convey. Watch this government-produced ad from Denmark , pulled after one day and imagine if anything even close to this was attempted in this fractured nation: From Financial Times, this story excerpt: Morgen Lykketoft, speaker of Folketinget, the Danish parliament, had previously warmly endorsed the video. “We are trying to inspire the very young to go out and vote. It is important we get a higher turnout, especially among the young. You have to use all sorts of methods,” he told state radio on Monday. He added: “I think it’s rather innocent. You can find much worse.” TV Ad Dollars Slowly Shifting to Web Video Increasing Portion of Broadcast and Cable Budgets Follow Younger Audience Online Suzanne Vranica May 13, 2014 Matt Ryan as the title character in NBC's new show 'Constantine.' NBC Online video outlets are finally starting to chip away at television's hold on advertisers. Several major advertisers, including MasterCard, MA -0.19% Mondelez International MDLZ +0.93% and Verizon Wireless in the past year have moved a portion of the money they previously spent on television to online outlets, conscious that viewers are more frequently watching video online, ad executives say. And with online outlets in recent weeks unveiling plans to ramp up their programming, more shifts are likely, say media buyers. Money for online video is "definitely coming out of TV," said Ben Jankowski, head of global media for MasterCard Inc., which shifted a small portion of its TV budget to online last year and will move more money this year. Starcom MediaVest, a big ad-buying firm, said it shifted more than $500 million out of TV over the past 12 months, three quarters of which went to online outlets. The agency, which is owned by
  • 172. Publicis Groupe SA PUB.FR +0.56% said it is planning a bigger shift during this year's "upfront" ad sales negotiations with major TV networks, which kicked off Monday. Babelfish Articles May 2014 – July 2014 20-7-14 Page 172 Related • Baffled by 'Net Neutrality'? Read This WSJ Primer "For us, it's really about shifting to where audiences are" said Laura Desmond, chief executive of Starcom MediaVest, which buys roughly $40 billion in ad time and space annually on behalf of marketers such as Procter & Gamble Co. PG -0.18% and Honda Motor Co. 7267.TO +3.50% "More and more people are spending time with other channels beyond the broadcast and cable networks," she added. While companies have been putting money into online video ads for years, few talked about moving TV ad dollars there. Rather, it usually came from their print and display ad budgets. But video content has been improving and audience measurement has improved, the two things have made marketers more comfortable with moving TV dollars, said ad buyers. Nearly 88 million people watched online video on a daily basis in March, according to comScore, up 14% on a year earlier. While the time viewers spend watching traditional TV continues to grow, according to Nielsen, many of the major cable and broadcast networks have seen sharp ratings declines in the past couple of years. At stake is the giant pot of money spent by advertisers. Television pulled in $66.35 billion last year, according to eMarketer, accounting for 38.8% of total U.S. ad spending. Introducing a new home for the best coverage of marketing and advertising, tailored for chief marketing officers. Digital media drew about 25% of total ad dollars. EMarketer predicts television will remain bigger than digital until 2018, by which time TV's share of total ad spending will slip to 36.1% and digital— including not just online video but all website ads and mobile ads—will reach 36.4%. Online outlets, such as Google Inc. GOOGL +0.62% 's YouTube, Yahoo Inc., YHOO -0.04% AOL Inc. AOL -3.06% and Microsoft Corp.'s MSFT +1.86% Xbox, are trying hard to speed up that shift. These companies have been ramping up efforts to lure some of television's ad dollars, holding their own "upfront"-like programming presentations for advertisers, called the NewFronts. How much these outlets can draw from TV budgets in the near term will be determined partly by this spring's upfront ad sales negotiations. On Monday, 21st Century Fox's Fox network and Comcast Corp.'s CMCSA -1.13% NBC network launched a week of star-studded presentations of coming new programs. NBC said it plans to use the hits "The Voice" and "The Blacklist" as building blocks for its prime-time lineup, which will feature edgy new dramas, such as the comic-book themed "Constantine," as well as a handful of female-oriented comedies like "Unbreakable Kimmy Schmidt," created by Tina Fey. Ad buyers and Wall Street are expecting the upfront market to be lackluster. J.P. Morgan said in a note to investors last month that spending commitments for broadcast networks could decline between 2% and 3% while advertising commitments to cable networks could increase roughly 5%. Wall Street analysts say online video isn't likely to take a big chunk out of TV commitments this year but it could have an impact. The threat of online video "could be used to hold down the price increase the networks get, but that will be very modest," said John Janedis, an analyst with Jefferies LLC.
  • 173. Marketers say major TV networks continue to be more appealing because of their ability to draw mass audiences. The Super Bowl, for instance, can draw as many as 100 million viewers. Still, ad executives are conscious that television can't meet all their needs. In particular, younger consumers are gravitating to online. According to Nielsen, 30% of online video users are age 18 to 34. By comparison, 21% of TV viewers are 18-34. "Younger consumers are consuming less TV as a portion of their total media consumption," said Laura Henderson, associate director of communications planning and media at Mondelez, maker of Oreo cookies and Trident gum. The company said it plans to shift 10% of its global TV ad spending into online video by the end of this year, following a double-digit percentage shift in the U.S. last year. Mondelez is pushing into online video to find "lighter TV viewers," Ms. Henderson added. MasterCard's Mr. Jankowski says declining broadcast-TV ratings over the past few years were a factor in the credit-card firm's shifting a low- to mid-single digit percentage of its overall TV budget in the U.S. to online video channels such as YouTube and Microsoft last year. He said MasterCard is likely to boost that by a few more percentage points this year. Another factor was that online allows advertisers to target viewers more precisely. MasterCard spent $81.8 million on TV ads in 2013, according to Kantar Media, an ad-tracking firm owned by WPP WPP.LN -0.55% PLC. The company declined to provide exact spending figures. Meanwhile, Verizon Wireless, a unit of Verizon Communications Inc., VZ -0.98% a shifted more than 10% of its TV dollars to online video last year with the majority of the dollars going to online ad portals and online video ad exchanges, according to a person familiar with the matter. Analysts and marketers say advertisers are feeling more comfortable with moving TV dollars as Nielsen and others have begun to be able to offer better measurement of how their TV ads compare with the performance of online video digital ads. Still, the measurement is far from perfect and mobile video consumption is still hard to figure out. Late last year, Google reversed course and allowed Nielsen to place measurement tags on ads running on YouTube. That agreement "allowed the creek to flow," said Brian Weiser, an analyst with Pivotal Research Group. Still, Mr. Weiser said it isn't a flood of money, adding that advertisers are holding back moving bigger chunks of their TV budget because of a lack of premium content online. "Programmers are taking baby steps with investing in content," added Mr. Weiser. "If they spend more, they will get more." Babelfish Articles May 2014 – July 2014 20-7-14 Page 173 TV Isn't Dead-- In Fact, It's Everywhere by Paul Bremer Think about all the different ways consumers access video content today. There are so many great content channels and everything happens instantaneously. Compared to even a year ago, the ease of access is exponential, as are the methods and mechanisms for the discovery of new content. But ubiquitous video doesn’t mean that people are fleeing comfort and familiarity. Read any recent piece on cord-cutting and you’ll find reference to consumers’ penchant for watching video “here and there.” There are so many choices for great programming that content producers and distributors are tripping over themselves to get eyeballs and attention. Putting “video everywhere” doesn’t necessarily guarantee getting viewers in front of content. The
  • 174. motivation for content consumption is the same as it’s been since the dawn of media: If it’s great content, it will get noticed. And unlike in the past, there is so much great content available that getting noticed is only half the battle. Achieving scale in a world that is generating hours of quality content each second is a real challenge. The power and resources of major networks and cable companies to market their content skews the playing field in their favor. Not long ago, “traditional media” was perhaps considered less open-minded or adept at playing the digital game, trying to apply what works on TV to the digital world. But now, big media companies have the vision along with the talent, the experience, and the capital to support huge promotional strategies that provoke viewers to engage across all manner of platforms. One good example is Jimmy Fallon’s self-evident success over the past few months: He records “The Tonight Show” for late-night TV viewers, it’s then distributed over social channels in the wee hours of the morning, and just like that, the bits and pieces of one single night’s show light up the digital sphere for days. His predecessors didn’t live in (let alone tap into) the new reality of what is essentially a boundless content marketplace, which has almost nothing do with time slots and competing programming, and everything to do with access. Perhaps “cord-cutters” is even too archaic a term, given that portable media has been taking viewers away from TV for more than a decade. What viewers are really doing is taking the upper hand, requiring quality and access -- or bust. Multiscreen viewers aren’t severing ties with networks, they’re reshaping their relationships with the networks, and the results have given a new dimension to entertainment viewing. This recent piece summarized the situation pretty succinctly by stating, “People who cancel their cable TV subscriptions may not miss their monthly bills, but they're also not missing out on some of their favorite broadcast shows.” Maybe instead of cord-cutters, Babelfish Articles May 2014 – July 2014 20-7-14 Page 174 we should start calling these people “network natives.” Audiences will always watch what they like. Comfort and trust with the content make today’s video viewers no different than their predecessors, and their viewing habits confirm that major media companies’ evolving distribution models are alive and well. Mapping Retail: Geo-Location, iBeacon & the Promise of Mobile Shopping Written on May 7, 2014 , Author Richard L. Tso ADOTAS – Advancements in mobile technologies have come a long way in recent years. When geo-location features first emerged on the scene with the introduction of Foursquare, Facebook and Yelp check-ins, industry analysts were skeptical about consumers broadcasting their locations and uncertain about avenues for monetization. Despite these reservations, mobile geo-location has found a firm foothold in our social lives and created an industry primed to help bridge digital communications with brick-and-mortar retail. In December of last year, Apple debuted its iBeacon technology at its flagship store on Fifth Avenue in New York to give shoppers the ability to receive customized messages about discounts, products and events available at that specific Apple Store location. And just yesterday Duane Reade, New York’s largest drugstore chain, released the first update to its app for iPhone including the integration of iBeacon for 10 select locations active as of May 1. “We know our busy, on-the-go customers have so much to take care of when shopping,” said Calvin Peters, Duane Reade’s PR & Digital Communications Manager. “When logging on to the iBeacon, the in-store mode screen gives the user access to the key items a shopper needs when in the store. From there, users will have the choice to use any of these features like browsing store items from the Shop icon and adding them to a shopping list. There’s also a floor map that displays an overhead view of the specific store location, in addition, iBeacon has a product locator will allow a user to search for an item and then plot that item on the in-store map.”
  • 175. The technology behind iBeacon is quite unique to the retail world. Introduced by Apple with iOS 7, it uses Bluetooth Low Energy and geo-fencing to provide apps a new level of micro-location awareness, such as trail markers in a park, exhibits in a museum or product displays in stores. The inclusion of this technology to the Duane Reade app adds features such as lock screen notifications when initially approaching a select Duane Reade store location, coupon offers based on historical data, and product reviews for timely content at the point-of-decision. iBeacon will initially be available at 10-select Duane Reade stores in New Yotk to test the viability of a further rollout. “iBeacon holds tremendous promise for the retail industry by providing a more customized approach to in-store shopping,” said Lisa Falzone, CEO and co-founder of iPad point-of-sale company Revel Systems.. “As the leading POS provider, we believe that personalizing shopping experiences starts at the point-of-sale through integrating loyalty programs, revolutionary payment methods like Bitcoin and emerging technologies. We recently announced a partnership with Index to harness the power of mobile to provide customers with personalized recommendations at the checkout line and foster deeper customer relationships.” Similar to the Duane Reade implementation, the location-based retail technology company Point Inside utilizes a different brand-centric app approach to help retailers curate a highly personalized shopping experience for consumers. By utilizing Point Inside’s StoreMode mobile technology, large retailers like home improvement chain store Lowes are able to integrate features into their mobile apps to give consumers the ability to scan barcodes to build shopping lists, find nearby Lowe’s stores and even navigate people to the specific items then need in a particular store they visit. “Point Inside partners with Top 100 retailers to enhance the way they communicate and engage with their shoppers — who overwhelmingly prefer to complete their purchases in physical stores,” said Pete Coleman, EVP and GM of StoreMode at Point Inside. “Lowe’s integrated our StoreMode platform into their digital platforms in 2013. The Lowe’s iPhone app, Android app, mobile website, and in-store kiosks all allow shoppers to locate products in-store, create shopping lists, and search store specific inventory to find products to complete home improvement projects faster. The Lowe’s app captures 100 million dynamic product locations that both customers and store associates can use to find products quickly and easily.” In a recent study of 1,000 consumers by mobile marketing company Swirl and independent marketing research firm ResearchNow, 77 percent of respondents said they’d be fine with sharing location data in exchange for something valuable like a mobile coupon or digital offer. Swirl also found that 65 percent of consumers indicated they trust retail brands over general shopping apps and social platforms such as Google or Facebook when it comes to location data. “Indoor location technologies including iBeacons (pictured) provide a tremendous opportunity for drug stores to engage the shopper in-store through product location, item recommendations, and store-specific search,” said Coleman. “iBeacons can serve up relevant and contextual deals and promotions on seasonal items such as allergy medication in the spring, sunscreen in the summer months, and cold medication in the winter as customers explore the store. The broad range of use cases that modern drug stores must support to meet customers’ demanding expectations make drug store operators a natural partner for Point Inside.” Point Inside expects that the line between in-store and online will continue to blur as retailers emphasize a seamless experience across all platforms. The company is already seeing a number of retailers actively re-assessing their current online experiences, which are presently designed as an endless aisle separate from any awareness or acknowledgement of stores. The rapid increase in smartphone app and mobile web usage is producing a dramatic re-orientation of online with store features, including product discovery and location integrated to the web. Babelfish Articles May 2014 – July 2014 20-7-14 Page 175
  • 176. “I think you’ll see more retail businesses serious about engaging the customer of today, exploring the use of iBeacon technology,” said Peters. “We’re all guilty of being attached to our phones and by using apps, customers will be able to scan through what they need, see what’s on sale, make reservations/appointments all custom-tailored to the individual.” “Retail adoption of solutions like StoreMode and iBeacons will enable an unprecedented increase in personalized shopping experiences for customers,” Coleman added. “Dynamic, accurate, store-specific information will be delivered to the fingertips of store managers, who will be able to customize the merchandising and messaging of an individual store to provide a boutique feel for even the largest of chains. This personalization and information-based merchandising will allow retailers to maximize the advantage offered by the physical store experience, maximize a customer’s positive brand association and expand revenue generated per visit in the face of ongoing online competition.” How to Add a 3-Second Bumper to All of Your YouTube Videos Babelfish Articles May 2014 – July 2014 20-7-14 Page 176 Greg Jarboe | May 6, 2014 Now, YouTube users can add a three-second bumper to all of their videos, making it easier to create a consistent brand that fans will recognize. In broadcasting, a "bumper" is a brief announcement, usually two to 15 seconds in length, that can contain a voiceover, placed between a pause in the program and its commercial break, and vice versa. The host, the program announcer, or a continuity announcer states the title (if any) of the presentation, the name of the program, and the broadcast or cable network, though not necessarily in that order. As John Gregg, a software engineer at YouTube, observed recently on the YouTube Creator Blog, "Everyone knows the power of a good introduction. Imagine watching The Simpsons without its iconic opening sequence. Wouldn't be the same, would it?" That was his intro to a new way to create a distinctive bumper for your videos, so you can more easily build a consistent brand your fans will recognize. Now, you can automatically add an intro video up to three seconds long to the start of every video on your YouTube channel. It only takes three easy steps to set up: 1. Upload the three-second intro video you'd like to use as a bumper to your channel as an unlisted video. 2. On your channel's In Video Programming page, click "Add a channel branding intro" and select the intro from a list of eligible videos. 3. Select which videos you want the intro to appear on. You can choose whether to add the bumper to all of your videos, or just the ones you've uploaded after a certain date. You can always remove or change the intro later. It's worth noting that YouTube says, "These intros may not be used as ads, sponsorships, or product placements." YouTube also doesn't recommend this feature be used by channels using their videos as advertisements. Why Three Seconds? You may wonder, "Why up to three seconds? Why not six seconds, like Vine, or 15 seconds, like Instagram?" Great questions.
  • 177. Many viewers decide whether they'll keep watching a video within the first few seconds. That's why a bumper on YouTube can only be up to three seconds long. That's also why you also want to hook viewers early at the start of every video on your channel. So, here are some important tips, best practices, and strategies to help you do that: Babelfish Articles May 2014 – July 2014 20-7-14 Page 177 • Make the first shot fascinating. • Address the audience immediately. • Tell them what they're watching. • Spark their curiosity. • Ask a question. • Tease the rest of the video. • Keep branding to less than five seconds, unless it's as hilarious as The Simpsons. Keep Viewers Watching Of course, you also need to follow your video's catchy opening with "awesomeness." The right length for a video is exactly as long it keeps people glued to the screen. Or, as NPR's Scott Simon advises, a YouTube video should be long enough to tell a story. And it is also worth noting that Simon's video is three minutes and 29 seconds long. Now, you may also wonder, "Do YouTube viewers only like short videos?" Another great question. Well, the latest research from Pixability has just found that even though the videos that consumer electronics brands produce are generally one to three minutes long, the unboxing videos, torture tests, how-to videos, and tutorials that people actually watch are typically three to 10 minutes long. So, how long should a YouTube video be? Long enough to reach a point. That said, basic production techniques help! • Pay attention to lighting, sound quality, and shot-framing. • Make sure the audio is clear and balanced. • Properly light your video. • Include only necessary footage in your videos. Cut, cut, cut! But... • Avoid sloppy editing. It can be more distracting than no editing. • Use varying camera angles, cut-aways, and other visuals to make your videos dynamic. Long, static shots can make a video drag. • Add transitions, overlays, and graphics to help convey your story. Finally, use the YouTube Video Editor tool to edit videos, add effects or enhancements, and correct minor problems. Yahoo and comScore Partner to Expand Global Access to Ad Measurement Greg Jarboe | May 7, 2014
  • 178. The new partnership will simplify the digital advertising experience for marketers in a number of ways, including improved workflow and increased global access. During the Digital Content NewFronts in New York City last week, Ned Brody, head of the Americas at Yahoo, unveiled the details of a global partnership between comScore and Yahoo that will provide the industry with more robust campaign measurement for video, display, and mobile advertising. Through this partnership, Yahoo will be integrating comScore validated Campaign Essentials (vCE) into its ad serving and reporting platforms, enabling clients to more seamlessly use vCE data for media buys. The vCE holistic ad delivery validation solution provides deep campaign insights, in-flight reporting, and daily alerting for convenient and effective campaign management. This integrated solution simplifies the digital advertising experience for marketers in a number of ways: • Improved Workflow: vCE will be integrated directly into Yahoo's ad platform, enabling near-real- time access to valuable campaign optimization metrics within the existing workflow of media Babelfish Articles May 2014 – July 2014 20-7-14 Page 178 planners and buyers. Tagging will be managed directly by Yahoo. • Independent Third-Party Metrics: Yahoo boasts one of the largest ad serving and reporting platforms with an expansive global presence. The integration of neutral, third-party metrics from comScore creates greater accountability across the industry. • Global Access: This partnership will also enable access to vCE on a global basis. With Yahoo's large global ad serving footprint, vCE metrics can be expanded to a larger number of reporting geographies. The solution will first be available on display and video buys for U.S. advertisers this summer, with plans to offer on mobile buys as well as to be available to international advertisers in later phases of the partnership. In a press release announcing the partnership, Brody said, "Yahoo is dedicated to simplifying the experience for advertisers so that they can spend more time focusing on what inspires them: capturing their customers' attention through great storytelling." He added, "There is a growing need for marketers to easily plan, buy, and measure across screens and ad formats. Offering a standard unit of measurement across screens throughout the life of a campaign is a big step toward meeting that need." In the same release, Serge Matta, president and chief executive (CEO) of comScore, said, "This partnership between comScore and Yahoo brings accountability to digital advertising and helps put it on the same playing field as TV." He continued, "It also means that we can significantly expand the vCE footprint by incorporating it into places where people want to use comScore data and making it more widely available to global brand marketers. We look forward to working with Yahoo to improve our clients' digital advertising performance." Industry Support for the Yahoo-comScore Partnership Industry reaction to last week's announcement has been generally positive. John Nitti, president of activation at ZenithOptimedia, said, "We are excited about what the Yahoo-comScore partnership will mean for vCE on a global scale. Increased accessibility of campaign key performance indicators (KPIs) helps us optimize the performance of our clients' campaigns and pay off our Live ROI proposition." Amanda Richman, president of Starcom USA, echoed his sentiment, saying, "In an increasingly complex marketplace, this integration simplifies our work and amplifies the opportunity for cross-screen planning and measurement."
  • 179. And Domenic Venuto, global president of data and technology at VivaKi, said, "This partnership has enormous implications up and down the digital advertising ecosystem. We recognized the potential of vCE early on and have worked to implement it into our SkySkraper data solution for this reason. We know the comScore partnership with Yahoo will deliver broader and more actionable campaign intelligence to all Yahoo marketers. Not only will it expand the availability of real-time campaign metrics across ad formats on a global basis, but it also means more data on which to base decisions." It remains to be seen whether the feelings surrounding this partnership will remain positive when it becomes widely available this summer, but for now the announcement is being met with critical acclaim. Babelfish Articles May 2014 – July 2014 20-7-14 Page 179 Facebook Develops New Video Ad Metrics Yuyu Chen | May 6, 2014 As Facebook introduces new video ad metrics, we ask what this move means for brands and marketers. New video metrics for Facebook's Page Insights and Ads Reporting will roll out in the coming weeks. Previously, Page owners could only see the number of people who started to watch their videos. But now, brands will be able to gauge other aspects of their video stats, including video views, unique video views, the average duration of the video view, and audience retention. "People are spending more and more time watching videos online each month and online video advertising is also rising," says a Facebook representative. "The new metrics are designed to help advertisers learn what's resonating with people, and determine how to more effectively create and promote their videos on Facebook." Here's a peek at what the new metrics will look like: Through the updated Page Insights and Ads Reporting, brands will be able to see how well their video ads are doing. For example, companies can determine where to place key messages based on completion rates at various benchmarks in the video. They can also learn the number of video views they receive from a targeted demographic. The new video metrics, which Facebook says it created without the help of outside companies, will be available for all paid and organic videos uploaded directly to Facebook Pages. "The new metrics continue Facebook's efforts to streamline the collaboration between paid and organic media," says Andy Spry, media manager at social media agency, We Are Social. "Previously, paid media reports showed video views as standard while organic reporting was less immediately available. This move empowers Page owners with a much more visual representation of their content's performance, allowing for optimized video content creation." He points out that the new metrics enable Facebook to catch up with Google in terms of measuring video content, as Google Analytics and Google AdWords are Facebook's main competitors for paid video promotion. This metrics update follows the launch of Facebook's Premium Video Ad program in March of this year. A Premium Video Ad starts playing without sound when the user scrolls over it; the ad will play in full screen with audio if the user clicks it.
  • 180. Some marketers worry the autoplay feature may affect the accuracy of Facebook's video view measurement if users don't actually watch the video while it plays automatically. But the social giant says that won't be an issue. Facebook tells ClickZ that it has expanded the metrics capabilities for increased accuracy, and strictly followed comScore's definition for a video view. "Regarding scroll/watching a video or not, a 'video view' is defined as a view of three seconds or more (not an impression) and will appear for all videos, including those that come to life as people scroll through News Feed," a Facebook representative says. The three-second measurement goes beyond the Media Rating Council's new "viewability" standards, which require that 50 percent of an ad's pixels must be viewable for a minimum of one second in order to be deemed as viewable. So what do the new video metrics mean for marketers? What kinds of videos should we be posting on Facebook? Spry predicts that the most successful video content will be less than 60 seconds in length, preferably 15 to 30 seconds. Meanwhile, he suggests that brands and marketers should keep an eye on drop-off rates when they analyze their Facebook video stats. "While view count is an easy metric to follow, pay close attention to drop-off rates, which show the exact times at which viewers choose to stop watching your videos before completion," he says. "A high drop-off rate is a warning signal and may indicate that your videos are not reaching the best-matched Babelfish Articles May 2014 – July 2014 20-7-14 Page 180 users for the content you are using." Does the Future of Online Shopping Lie in Social? Tessa Wegert | May 8, With the launch of the new #AmazonCart, it seems more likely than ever that social online shopping services are the future of e-commerce. Leave it to the world's largest online retailer to ratchet up the relationship between shopping and social media. Earlier this week Amazon launched #AmazonCart, a new way to shop that allows consumers to add products to their Amazon shopping carts within Twitter. If a user tweets about an item and includes an Amazon product link, others need only reply with the #AmazonCart hashtag to save the item in their cart for later. The idea, of course, is to make online shopping more convenient. Users can squirrel away items while they're top of mind, and without having to leave Twitter or conduct an additional product search on Amazon. As ClickZ reports, Amazon will inform shoppers of the status of the items in their cart, including whether or not an item is out of stock, by way of a confirmation tweet. There are a number of things to consider with regard to Amazon's plan. On the consumer side, there's the question of whether Twitter users will embrace the service. Since the exchange plays out entirely on Twitter, what they add to their carts is public knowledge, and that may not sit well. Remember Facebook's Beacon? If the public's reaction to that ill-fated feature is any indication of how social media users feel about sharing their purchasing data online, #AmazonCart may take some getting used to. Less than a month after Beacon launched in 2007, Facebook modified the program to give users more control over how (and if) online transactions from such sites as Fandango and eBay were shared. By 2009, however, the service was shut down completely,
  • 181. ultimately doubly shamed by a class action lawsuit and Facebook chief executive (CEO) Mark Zuckerberg's admission that Beacon was a "high-profile mistake." It's worth noting that #AmazonCart's service is entirely optional, and that beyond promoting Amazon proper there's no advertising component to the program as of yet. Still, small and mid-size businesses whose products are available on Amazon will no doubt be looking for ways to include a product link in their tweets with the hope that it will lead to future buys. Media buyers, too, are bound to experiment with the links in their Promoted Tweets as an alternative to their standard call to action. The groundwork has already been laid. An infographic from social media management dashboard MarketMeSuite shows there's a direct correlation between what consumers see on social media and what they buy online and in stores. Eighty-one percent of online shoppers say posts made by friends on Facebook and Twitter influence their purchasing decisions. Four out of 10, meanwhile, have made a buy after sharing or favoriting an item on Facebook, Pinterest, or Twitter. Social media has become a research tool, and one that's even more valuable to the decision-making process than search. Like search it allows users to glean information about products and brands, but it also includes the almighty personal referral. For years research firms like Nielsen have been reporting that word-of-mouth trumps all. Ninety-two percent of consumers surveyed around the globe confirmed that they "trust earned media" like recommendations from family and friends more than any other form of advertising. According to a report from Technorati Media, the majority of consumers follow brands on social sites in order to learn more about a product or service (56 percent for Facebook, and 47 percent for Twitter). That number is much lower (21 percent for Facebook and 15 percent for Twitter) when it comes to making a purchase on a social site, but the degree to which users rely on social media for product information and referrals could help to push them past this barrier in the years to come. #AmazonCart's effect on online shopping will depend on a number of variables. Consumers must voluntarily link their Amazon and Twitter accounts before they can take advantage of the service, for example, and that may cut down on the number of potential users. Still, #AmazonCart will undoubtedly change the way consumers view shopping in relation to social media moving forward. We may not be on the cusp of an e-commerce revolution, but for marketers and media buyers, this is the new service to watch. Retailers Look to Merge Offline and Online Shopping Experiences in 2014 Babelfish Articles May 2014 – July 2014 20-7-14 Page 181 MAY 5, 2014 US retail ecommerce sales will jump 15.5% this year US retail ecommerce will continue its torrid growth in 2014, with sales forecast to rise 15.5% to $304.1 billion. Although ecommerce sales will account for just 6.4% of the $4.73 trillion in total US retail sales expected this year, their true impact will be much bigger, according to a new eMarketer report, “US Retail Ecommerce: 2014 Trends and Forecast.” Sales alone do not tell the whole story of US retail ecommerce. Consumers may not buy online all the time, but they are shopping through digital channels constantly. Of the 219.4 million internet users in the US ages 14 and older, eMarketer expects 196.6 million, or 89.6%, to shop online this year, compared with 163.2 million who will go on to complete a purchase digitally.
  • 182. As the difference between those figures makes plain, digital shopping doesn’t always lead to an immediate conversion. Retail executives, however, say it does translate to influence throughout the path to purchase. The influence works both ways. According to a November 2013 survey of US digital shoppers by consulting firm Accenture, 78% of respondents reported “webrooming,” or researching online before heading to a store to make a purchase. At the same time, some store trips eventually led to a digital purchase. The same Accenture study found that 72% of respondents “showroomed,” or bought digitally after seeing a product in a store. Consumers, then, have merged online and offline into a single shopping experience. Retailers often lag behind consumers when it comes to blending the offline and online shopping experiences, but they are working to catch up. “The majority of stores are just learning how to [sell] online,” said Marshal Cohen, chief industry analyst at The NPD Group. “However, once they figure that out, the next step is how do they take the online and meld it in with the store experience to enhance them both.” Ecommerce and digital marketing teams increasingly understand that they need to drive sales in a channel-agnostic way. Scott Falzone, industry director of retail specialty at Google, noted that particularly among multichannel retailers, “their interest in digital is increasingly focused on driving customers and shoppers into their store locations as well as continuing to have a growing ecommerce and mobile commerce presence.” Gihad Jawhar, vice president of customer interface at Lowe’s, exemplified this approach: “I truly don’t care if shoppers end up buying online or in-store.” World Sleep Day: 10 interesting sleep-related research findings Babelfish Articles May 2014 – July 2014 20-7-14 Page 182 18 hours ago March 14, 2014 TODAY is World Sleep Day! To celebrate, here are 10 of the most interesting sleep-related research findings from the past year. 1. Sorry, but you really do look tired. Not getting enough sleep at night can really take a toll on your looks. A study in the journal Sleep showed that sleep-deprived faces have more wrinkles, eye-swelling, under-eye circles, eye redness and eyelid drooping than well-rested faces. The study included 10 people whose photographs were taken after a full eight hours’ rest, and then after 31 hours of no sleep. 2. Your brain’s system for taking out the trash is more active during sleep. The waste-removal system of the brain — called the glymphatic system — is nearly 10 times more active during sleep than during wakefulness, according to a study in the journal Science. And to better allow for this waste-removal, the brain’s cells actually shrink, found researchers from the University of Rochester Medical Center. 3. Some people can remember their dreams better than others. If you’re always able to remember your dreams, while your partner never can, spontaneous activity in the temporo-parietal junction of your brains may explain why. A study in the journal Neuropsychopharmacology shows that people who regularly remember their dreams have more activity in this part of the brain, versus people who only rarely remember their dreams. Are you an insomniac? Source: News Limited
  • 183. Babelfish Articles May 2014 – July 2014 20-7-14 Page 183 4. The brains of insomniacs may be different from good sleepers. A small study in the journal Sleep showed that people who have insomnia have more brain plasticity and activity in the motor cortex of the brain, which is responsible for controlling movement. However, researchers noted that more work is needed to determine whether this plasticity is a good or bad thing. 5. Catch-up sleep can help — but only to a certain extent. While recovery sleep can improve sleepiness and decrease levels of inflammatory hormones, it doesn’t seem to improve brain functioning, according to a study in the American Journal of Physiology-Endocrinology and Metabolism. “The major take away message is that extended sleep helps, but only to some extent,” study researcher Dr. Alexandros Vgontzas, a professor at Penn State University’s Hershey Sleep Research & Treatment Center, told HuffPost Science. 6. Schedules are good for your sleep Having consistency in your daily routine (including when you start work, when you eat dinner, etc.) is associated with better sleep, according to a study in the Journal of Gerontology: Series B. 7. Going to bed and waking up at the same times each day could be good for your weight. Regular wake and sleep times are associated with less body fat among young women, Brigham Young University researchers found in an American Journal of Health Promotion study. The study also showed that getting too little sleep (6.5 hours a night or fewer) or too much sleep (8.5 hours a night or more) was associated with more body fat. Schedules are good for kids, too. Source: News Limited 8. And for kids, a regular bedtime could actually lead to better behaviour. A Pediatrics study showed an association between inconsistent bedtimes and increased hyperactivity among 7-year-olds. “Kids don’t say they’re tired, they typically act it out — most commonly by being hyperactive,” Dr. Carolyn D’Ambrosio, the director of the sleep centre at Tufts Medical Center, who was not involved in the study, told LiveScience. 9. Insomnia doesn’t just zap your daytime productivity — it also raises the risk of a number of health conditions. A Journal of Sleep Research study that included data from 24,715 people showed that insomnia is a risk factor for a wide variety of health problems, including anxiety, depression, heart attack, rheumatoid arthritis and osteoporosis. 10. Burgers look awfully good when you’re tired. Just one night of no sleep increases cravings for calorie-dense foods, according to a University of California, Berkeley, study. Researchers looked at study participants’ brains after a normal night’s sleep and after a night of sleep deprivation, and found that not only did the participants tend to crave unhealthy foods like pizza and doughnuts over healthy foods like carrots and strawberries, but their brain activity was also different. Specifically, the part of the brain that controls complex decision-making had impairments after the sleep deprivation, while the part of the brain associated with reward had more activity. More: worldsleepday.org/
  • 184. The difference between agency confidence and arrogance in a pitch Babelfish Articles May 2014 – July 2014 20-7-14 Page 184 Posted on April 23, 2014 by Stephen Benrad This post is by Stephen Benrad, a Senior Consultant at TrinityP3. Stephen is passionate in helping clients manage decreasing marketing budgets through driving greater efficiencies in their media investment. The Chemistry Meeting: A day that agencies and advertisers look forward to with much excitement. For the advertiser this is a chance to meet a potential long term partner, experience some fresh thinking and see if the agency really is as impressive as their credentials suggest. For the agency this is a chance to capture the hearts and minds of a potential new client beyond trading exercises or remuneration templates. This is where they show the client who they really are and what they stand for. Some agencies are “pitch fit” – they have either won or are in the process of securing new business. The team they have is honed, the chemistry they have is genuine and they know how to work a table. For the client this presents itself as an interesting piece. It looks polished – they handover to each other seamlessly, there is banter, the client even allows themselves a smile. Despite this, there is something lacking and then it hits you. What a bunch of arrogant *****! F#!k I’m good, just ask me! So what made them come to this conclusion? 1) A sole focus on themselves. An agency may have much to be proud of and this should not necessarily be ignored. They will put up the slide with lots of client logos, the slide showing the hundreds of millions of dollars they bill and the slide with awards they have won from Cannes to Cairns. They claim that very few people ever leave the agency and their NPS score is amazing. To top it all off, their proprietary tools are unique and best in class. This is all very good but the danger with a focus on an agency’s own achievements may come across to the advertiser that they are just another notch on the bedpost. This was supposed to be an opportunity to show how the agency can be a progressive and viable partner and yet for the most part they are basking in their own glory. In many respects, this chest beating is best placed in the credentials document – after all, that is often the gateway to a Chemistry Meeting. An advertiser knows they are talking to a big agency with lots of clients. Simply rehashing this information can be a waste of time and offers no other insights or justification for the agency being here. 2) Not asking questions This is a consequence of the point above. An agency which focuses on themselves will not allow time for questions. Even taking time out of the equation, an agency that does not ask questions suggests arrogance in that they think they have all the answers. Questions are a sign of a smart agency. It shows a
  • 185. willingness to learn and collaborate. Not asking questions is a warning sign that this could be a trend. What happens when an agency gets a brief and they don’t challenge it? The output is not as strong as it could be. Will they do deals on our behalf that they think are right for us without engaging with us first? When an agency meets an advertiser for the first time, it is a golden opportunity to find out as much as you can in order to lay the groundwork for immaculate client service – in essence determine the scope of work. The more you know of a client’s needs, the better you can tailor a team around them and the better your chances of success in the long term. Babelfish Articles May 2014 – July 2014 20-7-14 Page 185 3) Not tailoring the conversation around an advertiser’s business It sounds obvious but Chemistry Meetings should have a focus on the client and the challenges faced within that category. A department store may face challenges from pure play retailers, an Australian FMCG advertiser may face increased pressure as a result of a recent trade deal with China and a bank may face a drop in profits owing to changes in the law. Whatever the challenge may be, advertisers like to hear that an agency has done some research about what keeps them up at night and how they can help with it. However quite often, the advertiser in the room could be anyone because there is nothing tailored to them. Even a couple of insights are welcomed by the advertiser – and if unsure what these challenges are, now is the time to ask. 4) Making assumptions A factor of confidence is admitting you don’t always have the answer and be willing to work with others to find the solution. An arrogant agency will make assumptions about a business they know very little about without researching it first. For example, observations around current channel selection are admirable but criticism at this early juncture is not advised. I’ve seen agencies make a reference to an advertiser’s spend in a particular media channel and suggest this is the wrong thing to be doing without doing its homework on ROI first. So how does an agency become arrogant? Most agencies will start off hungry and confident. They will get a couple of new business wins under their belt, enough to attract new talent and forge a point of difference in an industry that was beginning to look homogenised. This success continued and they doubled their billings and staff numbers in a short time and that’s when they changed from pitching for new business to expecting new business. Advertisers want to work with a confident agency. Confidence is contagious and the cousins of confidence – courage, faith and positivity – are welcome assets in an agency partner. You don’t want to work with an arrogant agency as it is not a partnership – do you want an agency making decisions on your behalf because they think they know better than you? A simple way to find arrogance is to challenge them when you first see evidence: How do you know that? Why do you think that? What makes you think you know more than us? Arrogant agencies will only see things their way, confident agencies will listen to your perspective.
  • 186. Of course, the advertiser themselves could be arrogant but that’s another post A more efficient process for selecting the perfect agency Babelfish Articles May 2014 – July 2014 20-7-14 Page 186 Posted on September 6, 2013 by Darren Woolley This post is by Darren Woolley, Founder of TrinityP3. With his background as analytical scientist and creative problem solver, Darren brings unique insights and learnings to the marketing process. He is considered a global thought leader on agency remuneration, search and selection and relationship optimisation. Time and again I read about marketers and procurement wasting valuable time and money in their RFP and tender processes. They do this by taking as many agencies as they can handle through a long and cumbersome selection process. Rather than wasting time and effort, we use a Filter or Stage and Gate process in managing potential agencies for our clients. The process is more efficient and effective. It also allows us to manage more and more complex selection processes where there could be multiple possible combinations of suppliers at the end of the process. Deconstructing The Pitch Process Basically a process of testing Capabilities, Chemistry, Skills, Cost and Contract in a particular order can define the typical pitch process. Some people make the mistake of taking every agency through the entire process. But if you provide a hierarchy of importance to this process, then it makes sense to use these criteria as a filter process. If an agency is not ideal or the best in the lower order criteria, why would you continue to assess them in the later stages hoping for a miracle. This allows you more time to focus on those agencies that better fit your criteria. It eliminates the distractions of multiple agencies that may have a few desirable attributes and allows you to focus on the important core attributes in a designed and managed process. There are a number of ways of structuring the process. Michael Lee at Madam in NYC famously launched with a process based on a “9-6-3-1″ structure. At TrinityP3 we recommend a similar guide (8-6-3-1) to look as widely as possible up front and then to filter to no more than eight for Credentials, no more than six for Chemistry and three for the final process (inclusive of the incumbent if they are still in the mix) and then one final successful agency. Selecting the List of Possible Agencies At TrinityP3, we have an online Agency Register database with confidential and detailed information about the agencies in the market we operate. This information is provided by the agencies and then checked and cross-referenced by our consultants. The TrinityP3 Agency Register provides us with the most comprehensive view of the marketplace. From this we filter a recommended list by a minimum of nine criteria being: 1. Conflicts – Does not handle conflicting business 2. Proximity – Geographical location 3. Capability – Agency size, creative reputation, depth of resource 4. Skills – Preferred core skills, ie B2B, digital, shopper
  • 187. Babelfish Articles May 2014 – July 2014 20-7-14 Page 187 5. Attributes – Preferred attributes, ie strategic, collaborative 6. Expertise – Experience with similar brands/scope 7. Experience – Category market knowledge/experience 8. Fit – Incumbents 9. Capacity – Capacity and desire to pitch From this we prepare a list of suitable agencies to meet the marketer’s requirements. Plus a list of client conflicts, so that the marketer can identify and understand the competitive mix. The financial services market is one that is particularly competitive and diverse leading to a limitation on available great agencies based on conflict. And finally we provide a John West list. This is a list of agencies we have rejected that makes the list provided the best. From this the marketing team and procurement can make an informed selection of no more than eight agencies, but ideally six to invite to provide credentials and meet for Chemistry meetings. Lets look at these next filtering criteria, which we present in our recommended order, but are not locked in stone. After all, the requirements of every marketer are different and therefore the process needs to be customised to suit their needs. Testing Capabilities in Credentials It is not just enough to ask for the agencies’ capabilities, you need proof of these capabilities. One of the best ways to do this are with case studies. Some marketers and procurement people want to test capabilities at this stage by giving the agencies a test to complete to assess their abilities. The problem is that to create a test that is meaningful and relevant to the marketing team and their requirements means providing all of these agencies with details that are specific to the brand and strategy. While the agencies are under a confidentiality agreement at this stage, you are exposing details to a wide range of agencies, most of whom will be ultimately unsuccessful. There is no guarantee that they will not use this information in some way. We did find out that one agency, who has been unsuccessful in a pitch with a client, was approaching their competitors on the basis that they had insights in the competitive category. Testing Contract Compliance There are many procurement people who like to provide the agencies with the contract up front to ensure there are no sticking points. The belief is that getting this out of the way up front will minimise issues at the back end. I agree to a certain extent, but it is not fool proof. It can also set a tone to the whole process that is about contract compliance and not capabilities, chemistry and skills. We have also seen agencies agree with the contract at the start of the process only to create all sorts of problems with clauses later in the process. My recommendation is depending on the size and sophistication of the agency; provide them with details of the terms and conditions of the contract, especially around payment terms, term of the contract and IP arrangements, so they can make an assessment to participate up front. Where possible have these discussions with the CEO, CFO or Commercial Director of the agency and not the creative or strategy leads, even if they have equity in the agency. Selecting suitable pitch agencies from TrinityP3
  • 188. Babelfish Articles May 2014 – July 2014 20-7-14 Page 188 Chemistry is More than Having a Chat I have written about Chemistry Sessions previously and the way that our approach differs from the usual. You can read about this here. The important outcome of the chemistry session is for the marketing team to meet, engage and challenge the agency team. The team represented here should definitely include the agency senior management and representatives of the various disciplines that will be working on the business. Over the years we have had situations where the chemistry between the marketing team and a single member of the agency was an issue. It was a simple matter of having a confidential discussion with the CEO of the agency to discuss the issue. They were then able to access if they wanted to substitute that person with an alternative if available or not. But ultimately is there is good chemistry between the two teams this is a reflection of shared culture, values and personality and an excellent bellwether of the immediate future of the relationship. A Test of Suitable Skills By this stage we recommend that the marketing team is down to no more than three agencies. One of these can be the incumbent. But it is definitely not three plus the incumbent. With this short list it is time to test their specific skills. The way this is tested depends on what criteria or ability you want to select the winning agency. If it is for channel media strategy, then the test should be for this. Or if it is strategic and conceptualisation then this is the basis of the test. It is important that the test is appropriate to the desired outcome. Too often we have heard of marketers providing the agency with a very wide ranging brief. They have asked the agencies to go and work on this in isolation, Then on presentation of the idea have selected the one they like best. What is this test? The ability to mind read? Or how lucky the agency is? Or how many resources they can get in to solve the problem? Or perhaps they just wanted the idea to that brief? I am never really sure. Lets just say that we have become particularly adept at customising the skill test to make sure the focus is on the desired skills or abilities of the agency. By focusing on testing the skill required you make the evaluation process more defined and the decision-making process more rigorous. We have run workshops, presentations, strategy days, events and the like to make sure the process informs the decision making process and not obscure it. Cost Is the Last Component in Value While the process is not left to the end, the cost is always revealed at the end. We commence the financial proposal process at the short-listing stage of three. This process is designed to allow the agencies to provide a complete overview of their cost proposal and to allow us to provide a like-for- like comparison as well as accommodate a customised proposal from each agency. The analysis of the financial proposal provides insights into: The suitability of the level and mix of agency resources The underlying pricing strategy of each of the agencies The ancillary costs for other services and the like Only once the selection team has ranked their preferred agencies do we commence discussing the financial proposals. This is because value is based at this level on the perceived quality of
  • 189. each agency against the proposal cost. While I know of some pitches where the selection was driven on price, it is a short-term and wasteful strategy. If you want to select an agency on price, do not put them through a test of skills. In most cases the discussion on the cost of the agency proposal is more about how then to deliver the value inherent in the preferred agency or agencies and their proposals. This is a discussion on the resources required, the mix of senior and junior and the most appropriate remuneration model to deliver this value. Babelfish Articles May 2014 – July 2014 20-7-14 Page 189 Then There Is One The final choice is the winning agency. The filter or stage and gate process allows you to systematically filter the agencies against your specific criteria. It reduces waste of time, money and resources for marketers and agencies. It provides focus and clarity in decision-making. It is efficient and effective in application. But it requires strategic focus and disciplined application. Can anyone see why you would not want to use this process? REALITY SETS IN … PAYMENTS IS HARD What's Next In Payments® 7:02 AM EDT May 1st, 2014 Share on linkedinShare on twitterShare on facebookShare on emailMore Sharing Services44 Payments innovators have set off to change the world. As the making of mobile payments grows globally, key players are racing to be the next big problem-solver in the mobile commerce environment. The battle of incumbents versus innovators, in fact, was one of the many focuses discussed at Innovation Project 2014. Following the event, Paul Purcell, partner with venture investing firm Continental Advisors, joined PYMNTS.com President, Karen Webster in an exclusive Mobile Commerce Insider Series digital discussion to elaborate on his own IP 2014 experience and how he believes we are rethinking, resetting, and reinventing the payments ecosystem. In a series of engaging, off-the-record discussions, IP 2014 covered a range of topics, including securities, alternative finances (or, as Webster put it, “bitcoin, bitcoin, bitcoin”), changing consumer habits, and more. At the start of the digital discussion, Webster asked if Purcell noticed any common threads that tied the event together. “An overarching differential, if I think about IP 2014 versus 2013 is the humbling, quieting nature of the audience,” said Purcell. “There’s been a bit of a ‘missions’ change. I happened to like it, because it grounds people in the reality of what’s going on, and how hard it is.” Purcell went on to explain that this “missions” change is what better shaped panel content and discussions in comparison to last year’s event, and that “people are talking much less about what they’re doing” due to failures that have occurred in industry structures and protocols. While some “big-biting innovators might plot to take over the whole ecosystem,” Purcell said, those that are successful often take more of a “small bite.” One success story, Starbucks, took a simplistic route, managing to positively shift consumer behavior. And getting consumers into new habits, noted Webster, is a very difficult task. Another challenge that merchants face is the fact that card acceptance is no longer a differentiator, according to Webster. Agreeing, Purcell pointed out that credit cards are “all
  • 190. commodities” that are no longer the major moneymakers for issuers. New business models, then, become the propellers of innovation. Furthering the digital discussion, Webster and Purcell dug deeper into some of the panels held at Innovation Project 2014. During this hour-long session, the following were topics on which Purcell offered his insight: 1) The prescription for innovators and incumbents. Are innovators succeeding at “changing the world”? 2) Bitcoin as a currency and a protocol. Is Purcell making investments in the area? What problems is it solving? 3) Getting consumers in the habit of using new digital forms of payment. What was it that Charles Duhigg, author of The Power of Habit, said that may have helped Purcell years ago? 4) The challenges of doing business with each other. What is Purcell’s view on B2B payments and asset types for making investments in the space? 5) The alternative finance world. Is it too late for banks to get back into it, or are they able to do exactly what alternatives are doing? 6) Trash talk. What’s Purcell’s take on the scuttlebutt about Square, Apple, and Amazon (holy grocery store, Batman!)? 7) Innovation Project 2015. What will be next year’s topics? What will have changed? With TV Poised To Join Video Universe, Viewer Attention Maxes Out: YouTube Share Now About 2% Babelfish Articles May 2014 – July 2014 20-7-14 Page 190 by Joe Mandese, May 1, 2014, 7:59 AM At a time when a rapidly expanding “TV universe” is poised to explode into an even more expansive “video universe,” Nielsen is releasing new data showing the attention spans of American viewers have essentially maxed out. The data, part of an annual benchmark report published by Nielsen, shows the number of channels viewed by the average households has stabilized at around 17.5 since 2008, even though the number of channels available to them has grown by 60 since then. The data is significant for several reasons, including the fact that Nielsen later this year will begin producing ratings for sources of video programming distributed outside the TV universe -- specifically, the Internet and mobile Web. Nielsen executives are still trying to figure out how they define the concept of “channels” in what could potentially be an infinite and ever-expanding universe, and have organized a client committee to help decide that, but one thing is clear: in the next year, or sometime shortly after it, the number of options in the universe Nielsen measures will be greatly bigger than what it measures today. What gets included or excluded in that universe could have a big impact on the success of video programming business models, which for the most part still rely on advertising. And while Nielsen ratings do not necessarily serve as advertising currency, the lack of Nielsen ratings has significantly curtailed the growth of TV networks that haven't been able to get them. Currently, so-called “long-tail” networks -- channels distributed on digital TV tiers that are too small to qualify for Nielsen's panel-based ratings -- represent as much as 20% of national viewing, but are not able to report a rating.
  • 191. The same scenario is likely to occur when Nielsen begins reporting its so-called Digital Program Ratings later this year: a few really big sources of video consumption are likely to dominate. The No. 1 source, ironically, is essentially an aggregator of online video's long-tail: Google's YouTube. Nielsen currently does not have an official number for YouTube's share of viewing, but aMediaDailyNews analysis of data from several knowledgeable industry sources estimates YouTube represents between 1.5% and 2.0% of the combined TV/video universe. “And that’s nothing to sneeze at,” says one long-time TV industry research executive, adding that while it might seem small in comparison to traditional TV viewing shares, it is quite significant in the context of the new combined universe. “Two percent of TV/video ad revenue is a decent piece of change,” he said, adding, “if they can get it.” Not coincidentally, YouTube has been moving in a direction to do exactly that, recreating its sales and marketing approach to Madison Avenue to replicate the TV industry's historical models, including an upfront, with guaranteed audience ratings (both Nielsen's Online Campaign Ratings, and comScore’s vCE ratings, depending on which clients want to use), allocating premium channel inventory, and potentially even negotiating cancellation options, and other network TV sales conventions. The other biggest source of online video programming -- subscription streaming service Netflix -- currently does not utilize an advertising model -- but that could change. Netflix recently announced plans to actually launch a conventional TV channel on cable TV. Nielsen executives estimate online video's share of total TV/video viewing -- including access via Web-based, mobile, connected TVs and gaming consoles -- is in the “5%-ish” range. Meanwhile, the new data on TV channels received vs. viewed comes as some comfort for the most dominant programming channels, but it also signals a challenge for up-and-comers, because even if they do qualify for Nielsen ratings, the likelihood they can compete for viewer attention is growing increasingly small, due to hyper-fragmentation. Since 1994, the year Nielsen began reporting the average number of channels viewed, the percentage viewed declined from 25.2% to 9.3% in 2013. Since 2008, the year when the average number of channels viewed stabilized around 17.5, the percentage viewed declined by more than a quarter -- from 12.4% to 9.9%. 1 comment on "With TV Poised To Join Video Universe, Viewer Attention Maxes Out: YouTube Share Now About 2%". Babelfish Articles May 2014 – July 2014 20-7-14 Page 191 1. Ed Papazian from Media Dynamics Inc commented on: May 1, 2014 at 10:38 a.m. Our own analysis, reported in our annual "TV Dimensions 2014", confirms the Nielsen findings. We do it based on adults, not households, so our weekly figure is lower, but we estimate that a typical adult views only 15 channels per week. Expanding the time-frame, however, and bearing in mind that you can watch a channel for only a few minutes and be counted as part of its audience, we estimate that a typical adult sees at least part of a telecast on 29 channels over a month and eventually samples 55 channels in a year. Channel loyalty is definitely on the decline when it comes to time spent as well. Where an average adult once devoted 8-9 hours per channel seen per week, this figure has steadily fallen and now stands at little more than 2 hours.
  • 192. Babelfish Articles May 2014 – July 2014 20-7-14 Page 192 50% of mobile shoppers open to beamed messages April 29, 2014 | By Laura Heller Close to half of all smartphone owners are open to receiving location-based messages, if it means receiving more personalized offers. Forty-five percent of these shoppers said they were 'very willing' or 'somewhat willing' to receive messages from retailers on their smartphones, according to recent research from eDigitalResearch. Retailers and brands are actively exploring location-based, direct messages through a variety of platforms including Apple's (NASDAQ:AAPL) iBeacon BLE technology. Beacons allow retailers to send location-based content to smartphone owners via apps on a robust, in-store network. But there has been some question as to how receptive shoppers are to location-based messaging and retailers are grappling with delivering meaningful content that engages without being creepy. But the lure of better deals seems likely to jump that "creepy" hurdle. According to the study, shoppers would most like to receive special offers and promotions, as well as discount codes. A handful of respondents also expressed interest in receiving store or product information, as well. Of the 1,300 smartphone owners surveyed, one third believe that personalized, direct messages sent straight to their smartphone when out shopping would 'likely' or 'very likely' influence their purchase decisions. Shoppers, it seems, really are willing to give up privacy for discounts: 78 percent of those surveyed said they would be 'extremely willing' or 'somewhat willing' for retailers to use data gathered from smartphones if it meant more personalized messages. "Apple subtly introduced iBeacon technology into the market at the end of 2013. As retailers and brands get to grips with what it is and how it works, consumer opinion demonstrates that it could potentially revolutionize the in-store shopping experience," said Derek Eccleston, commercial director at eDigitalResearch. "We found last year that half of smartphone owners regularly shop through retail apps and have them installed on their mobiles. It opens up the potential for retailers to digitally reach outside their stores and tempt smartphone owners in, increasing footfall and, as these results demonstrate, boost their revenue streams." Mobiquity Technologies recently released a new software developer kit (SDK) allowing retailers to develop apps that work on the company's Bluetooth-based network, turning on beacons at roughly 100 U.S. shopping malls. Shopkick's beacon network is currently being tested at Macy's (NYSE: M) locations. Safeway (NYSE: SWY) and Giant Eagle rolled out beacons to 150 supermarkets in December 2013, iBeacon developer Apple (NASDAQ: AAPL) features iBeacons in all 254 of its U.S. stores and American Eagle Outfitters (NYSE: AEO) announced a rollout to 100 stores in January. Read more: 50% of mobile shoppers open to beamed messages - FierceMobileRetail http://www.fierceretail.com/mobileretail/story/50-mobile-shoppers-open-beamed-messages/2014- 04-29#ixzz30fy24KDd Payment Innovation Is Not Enough For Retail Posted Apr 30, 2014 by Dax Dasilva (@dax_dasilva) Editor’s note: Dax Dasilva is founder and CEO of retail management company LightSpeed.
  • 193. Once a key differentiator, mobile payments are fast becoming a commodity and are widely used by retailers. Yankee Group found that 61 percent of large merchants already use a mobile checkout or plan to in 2014. We are seeing the major payments players recognize this, realizing that they can’t bank on razor-thin profit margins from swiping fees alone. For instance, Square has introduced other payment-related services to both merchants and consumers like Square Cash and Square Market, but it is a bit behind in the game, and as we saw recently might be gunning for a different kind of cash out. Commerce is all about bringing the right product to the right shopper at the right time, but the payment only addresses the close. To differentiate, merchants need to focus on innovating everything else that happens long before we reach the register, such as inventory management, a traditionally unsexy but mission-critical element of all store operations. The payment is a huge part of the customer experience, but all of the opportunity for upsell, cross-sell, and better insights into sales trends lies in the SKU. Babelfish Articles May 2014 – July 2014 20-7-14 Page 193 Inventory Management: Bringing the Sexy Back In comparison to the checkout, the rest of the in-store shopping experience has remained remarkably outdated, leaving shoppers and retailers alike frustrated with the amount of time and manual work required to get to the finish line — the transaction. In many stores, salespeople are still going to the back room to check for other sizes. Things are reordered when a hole appears on a shelf, or a customer requests something and it cannot be found. Looking for stock in other stores often involves multiple phone calls and scavenger hunts. Processing gift cards, returns and exchanges are still a headache. E-commerce being largely siloed from the rest of the retail operation amplifies these issues. E-commerce has the advantage of having all of the SKUs digitized, but most traditional retailers are flying blind. We work with more than 18,000 retailers, and they have told us that one of the main things that keep them up at night is competition from huge online retailers like Amazon. Without finding ways to deliver the convenience and selection found online, independent retailers won’t deliver an experience that makes shoppers want to get off the couch. Without an inventory management system that makes it easy to know what is selling well, what you have in your store, and what you need, retailers simply cannot compete in the “I need it now” economy. We’ve made progress on this front with the availability of inventory-centric point of sale systems, but with many retailers now offering both clicks and bricks, the equation is becoming more complicated. For instance, 42 percent of retailers say a top inhibitor of achieving the omnichannel experience is that inventory and order management are not integrated and accessible across all channels (source: Retail Systems Research). Drilling Down to the SKU Thanks to the nature of online shopping, data on the virtual customer is always available, allowing e-tailers to easily personalize recommendations, offers and upsells. The magical 25 percent off email that is sent to you from JCrew.com when you left your shopping cart? Not a coincidence. On this front, brick-and-mortar retailers are lagging dramatically behind. The opportunity to level the playing field, however, lies close to the payment. Many payment systems give you data around consumer purchase behavior, and some offer a view into the actual items purchased, but without an inventory management system to link this data to, they won’t pinpoint a lot of actionable insights. If brick-and-mortar stores start digitizing and linking more of their inventory to customer interactions, they can personalize the shopping experience much like their online brethren.
  • 194. This will play out on the shop floor, arming salespeople with data around repeat customer preferences, corresponding stock levels, deep product insight and corresponding items. Finding a way to capture and mine for these insights down to the SKU level can be challenging, especially for smaller retailers with limited manpower and resources. But this data is gold, and can have a huge impact on nearly every aspect of the shopping experience and CRM process. Babelfish Articles May 2014 – July 2014 20-7-14 Page 194 Back to Square One? At the end of the day, the payment is the easy part. What retailers really need is all the other stuff — using data to transform the harder aspects of retail management so that it benefits both their business and their customers. Amazon is likely making a play to offer this with its rumored Kindle-based POS system, giving the giant access to all of a retailer’s SKUs. Whether Amazon will use this data for its own benefit, or use it to offer users of its POS data insights on its own customers remains to be seen. But while it is a powerhouse in clicks, this experience cannot easily be translated to bricks. Challenges faced by brick-and-mortar retailers on a daily basis are unique to the physical world. Square already has one foot in the door, but has failed to gain a critical mass for any service other than its payment. It led the market with its payments innovation, but inventory and supply chain management is a much tougher nut to crack. What happens before the transaction and behind the curtains of a store is very complex and cannot be easily automated and packaged up as a utility. Throwing the wealth of available customer, product and purchase data into the mix only complicates the equation further. Owning these processes would not be a simple leap for Square or any company to make; as such, recent rumors imply they might be throwing in the towel on that effort. What is certain is that independent retailers should manage their data with kid gloves and be careful who they let into their stores. How automotive advertising works Andy Nairn Lucky Generals Admap: May 2014 Analysing the IPA Effectiveness case studies for auto advertising shows that ads that target penetration, rather than loyalty, and that balance emotional cues with rational information work best. The UK automotive industry generates revenues of £59 billion a year, according to the Society of Motor Manufacturers & Traders. Advertising has always played a huge role in the business, but the relationship between communications and the bottom line has sometimes been unclear. No manufacturer would seriously question the general importance of advertising in this market, but many do grapple with the more specific questions of what works best, where and why. And effectiveness experts regularly note that proving accountability in this market is 'fiendishly difficult' (as the IPA notes). Picture courtesy of Bartle Bogle Hegarty In an attempt to dispel some of the mystery, the IPA recently commissioned a review of all the automotive papers in its Databank. Drawing on 51 papers, spanning four decades, five continents, 200,000 words, 23 marques and all the major product sectors, this is the largest, and most robust, study of its kind ever to be conducted. Naturally, for a full understanding of the nuances and variations in this vast and complex category, it is necessary to read the full report. However, it is still possible to identify some common ground,
  • 195. for the purposes of distilling best practice. In particular, seven key themes emerge across the piece: Babelfish Articles May 2014 – July 2014 20-7-14 Page 195 1. The particular importance of a good product The vast majority of papers in this study acknowledge the importance of having a strong product in the first place. This pre-dates the more general truism that, in the digital era, good advertising cannot hide poor quality: it is a more specific observation, based on the unusually physical, public, visceral and well-scrutinised nature of this particular product. For instance, way back in 1986, the Ford Granada paper noted that: 'In the car market, impressions of both manufacturers and models are based primarily on the products themselves. Advertising can only help shape these reactions and responses such that good cars are seen to be good cars, and reacted to as such, by as many potential prospects as possible.' Put another way, while consumers are unlikely to compare bread brands side by side, or consult magazines to decide their supermarket of choice, or investigate a charity's efficacy, or ever experience their insurance provider's claims service – they will do all this, and more, when it comes to buying a car. 2. The insufficiency of a good product However, while it is true that 'success in the automobile industry begins with great products' as Alan R. Mulally, Ford CEO and President, said in Ford's 2011 annual report, it does not end there. The ultra-competitive nature of this market (compounded by chronic over-supply), means that all of the most successful campaigns in this study did much more than just 'show a bit of metal'. In fact, several of the IPA papers refer to equally strong rivals who fared much less well1, previous launches of the same product that were much less successful2, or international campaigns that did not achieve the same results for the same car3. The 2002 Skoda paper cites all three. What is clear, then, is that car marketers must use a good product as a springboard for success, and not as a guarantee. This simple truth occasionally seems to escape some manufacturers. 3. A strong, enduring vision Over and above the product, it is telling that many of the strongest campaigns appear to be driven by an inspirational corporate vision. This sense of purpose has been identified in other studies, as a key predictor of success4 but seems to be particularly true of this market. For Audi, the philosophy was encapsulated as 'Vorsprung durch Technik': a German mantra, which advertising has made familiar to 84% of the British public5. For BMW, it was the pursuit of 'the ultimate driving machine'6. For Honda7, it was the founder's belief in 'the power of dreams' and, for Saab, it was the desire to live up to the company's aeronautical heritage8. Perhaps the most radical example of this purpose-driven advertising approach, though, was Daewoo's launch into the UK, in 1995. Here, the vision was nothing less than redefining what it meant to be a car brand. The company was the fourth Korean entry to an already oversupplied market. Its budget was small and its vehicles were unexceptional. But the agency-client team identified a great deal of dissatisfaction about the whole process of buying a car. Armed with this insight, Daewoo took the audacious step of positioning itself as a service, rather than promoting its cars as products. Its entire marketing strategy then flowed from this vision: from its generous use of warranties to its family-friendly showrooms. Daewoo virtually hit its three-year target within 12 months, making it the most successful marque launch since 1975. 4. A penetration strategy, rather than loyalty
  • 196. Armed with a decent product and a strong vision, the next question is whether to pursue growth via penetration or loyalty. The answer appears to be the former. A previous analysis of the full IPA Databank has shown that penetration-focused campaigns are three times more effective than loyalty-focused activity9. The same study concluded that campaigns for durable goods (which would encompass cars) show an even greater bias towards attracting new customers. Meanwhile, several other academic reports10 point to the difficulties of boosting loyalty in the car market, unless as a side-effect of increasing penetration in the first place. So it would appear that car manufacturers are more likely to grow via new customers, rather than by seeking to boost retention as a primary aim. Indeed, several of the papers in this study imply that overly high levels of loyalty can be indicative of a marque that has stagnated, and has become off-putting to others11. Babelfish Articles May 2014 – July 2014 20-7-14 Page 196 5. The right balance of emotions and rational information Previous Databank analysis has shown that emotional strategies typically outscore rational approaches on virtually every single measure of commercial success. However, this finding by Binet and Field was accompanied by the caveat that: 'in categories where purchase intervals are long… it may be effective to target passive consumers with more emotional brand messages, while using more information-rich channels to influence active shoppers.'12 The automotive market certainly seems to be one of these exceptions to the rule. Almost all of the successful car studies in the Databank use emotions to great effect: this reflects the profound role of the car in our lives and society. However, most campaigns also underpin this visceral appeal with a more logical tack: this reflects the need for some rational (or often, post-rational) reassurance for such a big purchase. In other words, a balance needs to be struck, depending on the brand and its business problem. For instance, Honda was always seen as a very functional marque in the UK. The company's 2004 paper describes how it set out to engage people with a much more emotional approach. This strategy – brought to life with animated hummingbirds, philosophical bananas and enigmatic bottles of perfume – transformed perceptions of the brand and generated £388 million of incremental revenue (or £84 million of extra profit) for Honda within two years. Picture courtesy of Nexus and Wieden+Kennedy In contrast, Audi recently had the opposite problem: a brand that was very emotionally resonant, but seen as lacking substance when it came to practical issues such as affordability, fuel efficiency, environmental credentials and taxation bracket. The company's 2010 paper describes a shift to a more rational communications model, albeit one that was true to the marque's aspirational heritage. More than £50 million of incremental profits were generated in the first year: a short- term RoI of 1.7 to 1. 6. A brilliantly flexible creative idea A well-balanced strategy is worthless without the right execution though. For, in the words of Bill Bernbach (the creative behind Volkswagen's iconic campaigns of the 1960s), "If your advertising goes unnoticed, everything else is academic." The relationship between creativity and effectiveness has been proven time and again: most recently in another Databank analysis13 in 2011, which found that campaigns which had won major creative awards were also 12 times more likely to demonstrate major commercial effects. However, this is precisely where many car manufacturers appear to go wrong. It is difficult to think of another category, where there is such a divergence of creative standards. On the one hand, it is often noted how 'conservative'14, 'dull'15 and 'clichéridden'16 much car advertising is, 'with its
  • 197. laboured shots of leather interiors, alloy wheels and sleek bodywork'17according to Superbrands Volume VI and its 'fantasy driving sequences with beautiful people'18 (Daewoo's case study). But, on the other hand, there are all the case studies cited in this paper, which do not exhibit any of these faults. It surely cannot be coincidental that the IPA's Databank of the most effective car campaigns contains virtually no examples of the former, and many of the latter. Or that manufacturers appear to be learning for themselves, and consciously seeking to improve on this front.19 So it is certainly true that the commercially successful campaigns contained in this study have been unusually creative. However, beyond this – and perhaps an understandable bias towards product demonstration over comedy or celebrity – there is no single formula for success. Indeed, the complex nature of the car market means that the most successful campaigns are often the most loosely defined. Several of the papers talk of the importance of focusing on an enduring tone of voice, that will allow many different messages to be incorporated over time and across media.20 Or, as the 2006 VW Golf case study put it: 'How have we achieved this enduring [success in the UK over 30 years]? Ironically, because client and agency have never defined the brand too rigidly. There has been no one creative idea, no single endline, no brand onions or pyramids. Instead, communications have been unusually free – able to reflect the times, without ever getting trapped in any one time.' While simpler categories may require a more traditional, single-minded approach, it appears that the most successful creative ideas in the car market are those which are brilliantly flexible, not just wonderfully simple. Babelfish Articles May 2014 – July 2014 20-7-14 Page 197 7. A 'Snakes and Ladders' media model Car advertisers have always had to deal with a more complex customer journey than most marketers. At a simplistic level, this has meant that they have used more multi-layered channel strategies than is normally the case. So, the car case studies in the IPA Databank over-index on most of the main media (Figure 1). Figure 1 This, then, is an example where car advertisers are actually ahead of the game: previous analysis of the IPA Databank has shown that multi-layered campaigns are generally more effective than single-channel campaigns. However, within this simplistic overview, a number of more profound points emerge. Firstly, TV advertising remains an extraordinarily powerful force in this market. Previous analysis of the Databank has shown the medium's enduring – and, indeed, increasing – effectiveness in the world at large. But many of the papers testify to its even greater potency in this sector, because of its highly public nature21, its unrivalled ability to convey emotions22 and stature23, its social value24 and its galvanising effect on the dealer network25. What is also clear, though, is that TV is undergoing a transformation of its own and that car advertising is at the vanguard of these changes. For while the early papers typically described big, blockbuster TV ad spots, the later papers cite everything from in-film placement26to movie production27, YouTube strategies28 and brand-specific channels.29 Secondly, outdoor advertising and direct marketing remain unusually powerful weapons in this market. Of course, like TV, these media are being transformed by digital technology, but there will always be a need for what they do best: namely build roadside presence and nurture a high-quality relationship with customers, respectively.30
  • 198. Thirdly, and most profoundly, the deployment of all these different media layers has changed, in response to the more complex customer journey described above. The early case studies invariably described a 'sales funnel', whereby broadcast advertising would be used to build long-term desire among 'passive' buyers who were not 'in market' – then more specific channels would be used to persuade the much smaller group of purchasers who were 'actively' shopping at any one point in time. However, the modern papers talk of a consumer who is 'always on' and so needs to be engaged throughout the year, and across all sorts of touchpoints. In this new model, the neat, sequential layers of yesteryear are replaced by messier media structures, which 2011's Fiat case study described as being 'more like snakes and ladders than a funnel'.31 the evidence from these later papers is that creative channel planning will be just as important as executional brilliance going forwards. The automotive market is vast and complex. But despite this, successful brands do seem to share some common characteristics. Although the market will continue to change dramatically, these fundamentals are likely to remain true. While evaluation will remain difficult, the principles of best practice are increasingly clear. The article is a summary of 'Effective marketing strategies for automotive campaigns', which can be found on the IPA's Effectiveness hub: http://www.ipa.co.uk/effectiveness. As WhatsApp Hits 500 Million Users, CEO Jan Koum Preaches Focus Babelfish Articles May 2014 – July 2014 20-7-14 Page 198 April 22, 2014, 11:02 AM PDT By Liz Gannes While waiting to hear whether European regulators will clear its $19 billion acquisition by Facebook, the mobile messaging app maker WhatsApp hit a big milestone yesterday: It has 500 million active monthly users. They are sharing 700 million photos and 100 million videos per day. What’s the company going to do to celebrate? “We’re going to get our engineers together and fix a lot of bugs,” said WhatsApp CEO Jan Koum. His point: While the public story of WhatsApp may have been rather exciting of late, the internal focus has been rather boring. And apparently, that’s just how Koum likes it. “We don’t have anything huge we’ve changed in our last six months, but we’ve had probably 1,000 little bug fixes and improvements,” he said. The next big feature for WhatsApp has already been announced; Koum said at Mobile World Congress earlier this year that the company would roll out support for free voice calls. When? “In the next few months.” The Mountain View, Calif.-based company’s previous big release was voice messaging last summer. Smaller changes since then have included new privacy settings that allow users to decide who can see their status and profile photo. Koum and his co-founder Brian Acton — who say they will continue to operate WhatsApp independently when and if the Facebook acquisition goes through — spent all last week answering customer support emails so they could better brainstorm things to fix. All this feature-tweaking (some might say thumb-twiddling) is justified, in Koum’s opinion, because he thinks the single biggest barrier to WhatsApp’s continued growth would be making the app complicated and bloated.
  • 199. “I worry about how to offer a competitive set of features without making the UI difficult, the user experience worse, the application bloated,” he said. “These screens are small. There’s a limited amount of memory and bandwidth. It’s just all about focus.” Simplicity is especially important because many of WhatsApp’s users are joining the service as they buy their first phones and come online for the first time. Geographically, the company’s four biggest sources of growth right now are Mexico, Brazil, India and Russia, Koum said. WhatsApp now has 48 million active users in India alone, its largest single country. Koum noted that this number is about half the number of Facebook’s active users in India. The company has arranged deals with carriers there to offer unlimited WhatsApp data usage for 30 cents per month. In Brazil, WhatsApp has 45 million actives. “The message growth rate in Brazil — it’s not like a hockey stick, it’s like a vertical line,” Koum said. In Turkey, where Twitter had recently been blocked, WhatsApp has 14 million active users. WhatsApp just hired its first Turkish-speaking employee yesterday, Koum said. It is working to hire customer support people who speak all the languages its customers do. While Koum might spend his days worrying about feature bloat, there’s also the reality that WhatsApp faces competition from zillions of other mobile messaging app makers, many of them quite popular around the world — and some of them talking about taking their companies public. Especially in Asian countries, WhatsApp is getting beaten by competitors. Line has more active users than WhatsApp in Japan, Thailand and Taiwan. KakaoTalk has more in Korea. WeChat has more in China. Koum pointed out that his competitors have had trouble making inroads in WhatsApp strongholds like India and Spain, despite splashy and costly efforts. “There’s not enough money and not enough celebrities in the world to convince people to use a shitty product. People are so savvy these days. People expect a good user experience.” Babelfish Articles May 2014 – July 2014 20-7-14 Page 199 How to Build a Perfect Content Distribution Strategy By Dawn Papandrea, NewsCred Contributor | April 30, 2014 If content lives on the Internet but no one sees it, does it really exist? Aside from philosophical musings, the truth is without distribution even the most creative, innovative, and groundbreaking content might not be discovered. So how can you ensure that the right audience has access to the information your company is trying to disseminate? The first thing you need to do, is go download NewsCred’s Guide to Content Distribution. You’ll get a detailed breakdown of best practices for both paid and unpaid distribution methods, from social media and native advertising to PPC, SEO, and more. Print it out, grab a highlighter, and take it into your next content strategy meeting. But for now, if you’ve only got five minutes to spare, here’s the “CliffsNotes” version of the Guide, and how it can totally change your approach to content distribution. First, you need to answer these two basic questions: 1. Why do you want people to read your content? You might be trying to increase user engagement, boost brand awareness, promote thought leadership, or drive leads. Have a clearly defined goal so you can create a plan.
  • 200. 2. Who is your audience, and how do they consume content? They might be consumers or B2B connections; they could be decision makers or information gatherers. Figure out who you want to reach, and then determine where they spend their time online, and what types of content they prefer. From there, you can determine which paid and unpaid distribution methods can work for you. Babelfish Articles May 2014 – July 2014 20-7-14 Page 200 Paid distribution: Ad networks – You might know these as a Pay-Per-Click (PPC) campaigns. You can use search PPC (i.e. Google Adwords) or content PPC [i.e. via companies like Outbrain). Quick tip: This method works well at beginning of campaign to ramp up engagement. Select keywords according to what your users are searching for, and use strong Calls to Action (CTA) in your ad copy. Paid Social – These campaigns can include LinkedIn ads, sponsored posts on Facebook, and promoted tweets on Twitter. Quick tip: For marketers on a budget, use paid social to drive people to gated content so that your social efforts can be used to generate leads. Native advertising - This is partnering with a publisher to provide content for their audience, which should align with your brand and marketing goals. The content should be stellar, and feel indigenous to the platform. Quick tip: Native advertising takes time. You’ll have to run these campaigns for 3-12 months in order to see tangible results. Organic distribution: Social media – With so many platforms to choose from, each one has its strengths and specific strategies for success. The key is to not spread yourself thin. Choose the ones that work best for your brand, audience, and type of content. Add social buttons to your site, and cross promote your content to encourage social sharing. Quick tips: • Facebook: Share content that is highly visual—articles and images get 94 percent more views than those without. • Twitter: Strike a balance between links to content and conversational tweets. • LinkedIn: Create your own LinkedIn group for free, and on your own company page, target specific updates to certain Linkedin members by role, industry, and company size. • Google+: Posting on Google+ results in improved search results on Google. Post actively in order to improve SEO. • Pinterest: Engage users through visual content to drive traffic back to your site. Use accurate descriptors to ensure your pins will be discovered. Free content platforms – YouTube and Slideshare are free platforms that allow you to share specific types of content, namely video and slideshow presentations respectively. Both formats can be very effective depending on the type of audience you wish to reach.
  • 201. Quick Tips: For YouTube, be sure to use keyword-rich descriptions to make your video content searchable. For Slideshare: Repurpose your white papers and guides into Slideshare presentations. Crowdsourcing – Finding ways to engage or incentivize an audience to participate and share their own content can be massively effective. Quick tip: Such campaigns should encourage social sharing, so that audience participants can spread your message to their personal networks. SEO – Though the algorithms are always changing, SEO helps search engines figure out what each page on the web contains, and how useful it might be to users. Quick tip: Strong, relevant content will help you score inbound links to your pages (thus increasing your PageRank), but you should also do your part by identifying the major themes and search terms of your business, so you can build content around them. Use keywords in the headline and body copy, but be sure the content is high quality. Currently, Google favors pieces over 500 words. Lead nurturing - Lead nurturing is the process of building business relationships with prospects early in the buying cycle. To do so, you can feed personalized content to a segmented audience based on their industry, web behavior, job, function, or vertical. Marketing automation platforms like Marketo and Hubspot can simplify this process. Quick tips: Optimize your site for your CTA or form. Include fields that capture company information, business needs or interests, and contact information. Then, track and monitor user activity, including time spent on your page and bounce rates, so you can properly market to users based on that information. Getting eyeballs on your content is no easy task, but by trying a combination of the above distribution tactics, you can grow your audience and get your brand message across. How to Keep Up with Millennials + Their Omni-Channel Shopping Habits Babelfish Articles May 2014 – July 2014 20-7-14 Page 201 Posted on April 24, 2014 by Kelsey Cox With smartphones in every pocket, Millennials are equipped and have become accustomed to a new way of shopping. With over $200 billion in annual buying power, Millennials are an important group to cater to; but how much are retailers considering them as they update their marketing strategies? While Millennials do still enjoy in-store purchases, 85% like to use their mobile devices to research products before making purchases. Retailers who are aware of this keep their online presence strong and use reviews to their advantage. 50% of Millennials will visit a retailer’s location when they are offered a 20% discount, yet 72.7% of retailers do not offer mobile coupons to their shoppers. The retailers, who are bringing their business into the future, catering to Millennials in their strategies, will see the most success in the years to come. Merchant Warehouse surveyed over 1,000 Millennial shoppers and retailers, presenting their findings in the infographic below.
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  • 205. Everpurse handles essentials while providing up to 48 extra hours of battery life. Babelfish Articles May 2014 – July 2014 20-7-14 Page 205 Tiffany Nesbit on April 30, 2014. Wallet smartphone cases are all the rage; they have slots that allow you to hold your ID, credit cards, and metro passes in the phone that’s likely glued to your hand- saving you the process of digging through your bag or holding a separate, bulky wallet. The problem with these products is that they allot you more time to use your phone, something that is highly likely to lead to a low battery warning. Annoyance and anxiety are sure to follow. Though everyone has experienced this agony, not everyone is lucky enough to carry a spare charger with them. To the advantage of all of us, Everpurse‘s new product can solve the issue, and then some. Last year, Everpurse launched a clutch purse capable of charging your phone, and it was very successful. But if you’re a person that has to carry files home, or keeps a book or make-up bag in your purse, a clutch isn’t going to cut it. Creating a cell-phone-charging full sized shoulder bag would be ideal, but it would also be expensive to produce, so Everpurse has invented the Mini.
  • 206. The Mini is a wallet that manages to hold your cards and charge your phone while remaining stylish. Its clasp doubles as a USB plug, which can be charged before leaving the house, then the wallet is capable of fully charging a smartphone up to three times. It is small enough to fit into a purse, but fully functional as a charging wallet, and even comes with a crossbody strap for days you don’t have a lot to carry. The Mini is compatible with the iPhone 5 and 5S, and is available until May 6th for $98 (the price jumps to $129 after). Everpurse is in the process of creating Minis that will support other phone types. Babelfish Articles May 2014 – July 2014 20-7-14 Page 206 Publishers focus on data monetization 29 April 2014
  • 207. LONDON: Data monetisation will be the key issue facing the online publishers in the UK over the next 12 months, according to a new survey. The Association of Online Publishers (AOP), the industry body representing the UK's digital publishing bodies, surveyed 700 brands for its annual look at the UK's online publishing landscape and found that 89% planned to grow their investment in data technology in 2014. Investment was not being restricted to technology as over half (58%) also expected to hire data analytics personnel during the year, up from just 30% in 2013. Further, partnerships were likely to be affected, with 57% of those surveyed anticipating the development of technology partnerships in data management, which was more than those who are looking for partnerships in mobile or tablet apps. "Data has been talked about in terms of its importance for a long time but we are now seeing real focus dedicated to driving the collection, analysis and interpretation as it permeates every aspect of the digital business from content creation, to marketing and revenue generation," said Tim Cain, Managing Director of AOP. "We can expect to see growing sophistication in its usage going forward," he added. The onward march of programmatic was also evident in the survey's findings. Fully 70% of digital publishers indicated they would use more private ad exchanges in 2014, while 61% said they would increase their use of real-time bidding. Video too was forecast to boom in 2014, with almost two thirds (64%) of UK publishers confirming they were increasing investment here as they looked for new ways to engage with their audience. In line with the AOP's 2013 survey, mobile grew significantly: 71% of publishers reported a 'major increase' in mobile audiences; the equivalent figure for tablets was 60%. The latter were, however, predicted to be the main source of paid revenues for over half of publishers this year. Babelfish Articles May 2014 – July 2014 20-7-14 Page 207 Data sourced from AOP; additional content by Warc staff 5 DICAS PARA GUARDAR INFORMAÇÃO NA CABEÇA
  • 208. Babelfish Articles May 2014 – July 2014 20-7-14 Page 208 1. Preste atenção (possivelmente a mais difícil de todas) Simplesmente prestar atenção na tarefa, conversa ou experiência atual é importantíssimo. A distração torna nossa memória mais fraca e, consequentemente, aumenta nossa tendência a esquecer as coisas. 2. Tire um cochilo Pesquisadores do sono da Nasa descobriram que cochilar beneficia de modo significativo a memória funcional, e um estudo de 2008 usou exames de imagens magnéticas para determinar que a atividade cerebral nas pessoas que cochilam é maior durante todo o dia do que nas pessoas que não repousam. 3. Rotule as pessoas O presidente americano Franklin Roosevelt era conhecido por ter uma memória surpreendente. Ele conseguia se lembrar do nome de alguém que encontrou apenas uma vez meses antes, aparentemente sem dificuldade. O segredo: quando era apresentado a alguém, Roosevelt imaginava rótulos com os nomes das pessoas escritos em suas testas. 4. Visualize Precisa decorar uma lista de palavras ou nomes? Você terá maior probabilidade de lembrar as palavras se elas forem associadas a imagens – especialmente se você se considera uma pessoa que aprende visualmente (65% da população, segundo estimativas). Por exemplo, se você precisar se lembrar de uma reunião às 4:30, experimente memorizar seu quarteto favorito (os Beatles?) e um bolo de aniversário de 30 anos. Parece bobagem, mas funciona. 5. Experimente o método de "Baker-baker" (“Padeiro-padeiro”) Em um experimento psicológico conhecido como paradoxo de Baker-baker, os sujeitos foram divididos em dois grupos, aos quais mostraram a foto de um homem. Um grupo foi informado de que o sobrenome do homem era Baker (padeiro), enquanto ao outro grupo foi dito que o homem era um padeiro. Quando mais tarde lhes mostraram a foto e pediram para lembrar a palavra associada, os que haviam sido informados sobre a profissão do homem tinham muito maior
  • 209. probabilidade de lembrar a palavra. A explicação é simples: embora as duas palavras e fotos fossem exatamente a mesma, quando pensamos em um padeiro, outras imagens e uma espécie de história vêm à mente (aventais, cozinha, pão fresco). Babelfish Articles May 2014 – July 2014 20-7-14 Page 209 Fonte: Exame. Kids of today and tomorrow: A global and regional close-up on the youngest millennials Carlos Garcia and Jo McIlvenna, Nickelodeon Insight & Reporting ESOMAR: Latin America, Buenos Aires, April 2014 Summary This paper describes research into the attitudes, expectations and hopes of children aged 9-14 in Latin America, focussing on Mexico, Brazil and Argentina. The findings are then contrasted with 32 other countries around the world. Latin American children are, on average, happier than their counterparts and also spend more time with their families. They also feel less 'stressed' in general, but worry more about their performance at school. Their approach to life is positive and optimistic, believing they will earn more than their parents. Latin American children emphasise the importance of a close circle of friends and being part of a happy family, with these considered not just important for happiness, but indicators of success. Increasing and above average numbers feel pride in their national identity and want to maintain traditions, whilst also displaying open and tolerant attitudes towards the world. Overall, Latin American children are likely to grow up being sensitive and well socialised, with a positive approach to discussion and compromise. Kids of today and tomorrow: A global and regional close-up on the youngest millennials Introduction Nickelodeon have undertaken the most detailed analysis to date of kids around the world. In this truly global exploration, we have reached out to every corner of the world, including several countries we have never before explored in this level of detail – for example, Greece, Nigeria and Egypt. In total we have conducted our research in 32 countries. In Latin America we covered Brazil, Mexico and Argentina; and the Americas were also represented by the United States and Canada; Europe was represented by France, Spain, Italy, Portugal, Greece, United Kingdom, Germany, Netherlands, Sweden, Russia, Hungary and Poland; Asia-Pacific countries included China, Japan, Singapore, Malaysia, Thailand, Philippines, Australia, New Zealand and India; and from Middle East and Africa we covered Turkey, Saudi Arabia, Egypt, Morocco, Nigeria and South Africa. Geographically the research spans every continent. In business terms we have captured data which can inform our local as well as international operations in every cluster. Our global scope allows us to contrast kids in Latin America with their counterparts in every other corner of the world, including other emerging markets. By showing where similarities and differences lie, we can point to implications for better connecting with Latin America kids as they evolve into tomorrow's consumers, both at home and on the worldwide stage. For anyone with interests in the key Latin America markets, this analysis of motivations, needs and values provides vital insights. Kids of Today and Tomorrow builds on a significant heritage of U.S. and international projects undertaken by the Viacom family. Nickelodeon Kids & Family GPS has focused on the family today, painting a detailed global picture of roles and relationships and highlighting, for example, the disappearance of the Generation Gap and the evolution of Family Fusion. Through Kids of Today and Tomorrow, we can deepen our insight into the world of kids and families. Our sample
  • 210. includes 6,200 interviews with the 9-14 age group (at the time of the research, born 1998-2003), which we have defined as "last wavers" within the Millennial generation. Although it used to be expected that we would see the Millennial generation end by 2001 (now aged 11 years), recent research has shown that this generation is extending further and there is little to differentiate down to age 9. Other research within the Viacom family has shown that a key definer of the influences and attitudes on the Millennial generation will be the global economic crisis of 2008. Those born after 2004 will have no living memory preceding this. 2004 therefore seems like the natural turning point in the generations. This is why we chose 9-14 years as the age bracket to represent this final phase of the Millennial generation. We believe this is the broadest single study of these youngest Millennials. Babelfish Articles May 2014 – July 2014 20-7-14 Page 210 Methodology The global quantitative survey was conducted in June/July 2012 and further augmented in May 2013 with a total sample of over 5,125 kids aged 9-14 years. The sample comprised approximately 150 kids in each country (300 in the UK, 450 in Russia and 60 in Egypt, 100 in Morocco and 110 in Nigeria). All interviews were conducted online except in Saudi Arabia, Nigeria and Morocco (all face-to-face). Fieldwork and data processing was carried out by GfK NOP Media and Entertainment, with IPSOS providing fieldwork support in Saudi Arabia, Marketing Support Consultancy in Nigeria and Confield in Morocco. Study design, analysis and reporting were directed by Jo McIlvenna Ltd. The primary research undertaken for this study was enhanced by additional analysis based on 1,075 8-14 year olds in the US. In addition, we were able to draw on qualitative explorations including content analysis, focus groups, online QualBoard discussions and interviews with generational experts. Our research also draws on other studies which have looked at the early behaviours and attitudes of kids aged 8 years and under and, through that, to provide early understanding of the next generation following Millennials (currently referred to as Post-Millennials). There are several sections where we have drawn comparison with data from 2006. This data is taken from two VIMN global quantitative studies: • Wellbeing Study: 12 countries (Argentina, Brazil, China, France, Germany, India, Japan, Mexico, South Africa, Sweden, UK, USA) • Circuits of Cool : 11 countries (Australia, Brazil, China, Germany, India, Italy, Japan, Mexico, Netherlands, Sweden, UK) Where findings are comparing 2006 and 2012, the 2012 Next Normal global total replicates the country mix for the relevant study (Wellbeing / Circuits of Cool) and not the full 32 countries – this means that we are comparing like with like to provide a true picture of shifts over time. Key findings We set out to examine a wide range of the theories often expounded about kids of today in the media: fixated on technology, bored easily and seeking instant gratification, spoiled, overprotected and, as they have been dubbed, "Generation ME". Our results show which myths have some foundation in reality and which should be debunked.
  • 211. Kids of Today and Tomorrow has identified five key themes. Babelfish Articles May 2014 – July 2014 20-7-14 Page 211 1. Confidence A number of factors play into this theme and the first of these is happiness. Today's youngest Millennials are overwhelmingly happy: globally, 88% score themselves very high on the happiness scale. It's even higher in Latin America: Mexico 98% Brazil 92% Argentina 90% This gives us a Latin America average of 93% - somewhat above the happiness levels we see in other emerging markets: for example, the average across SE Asia is 89% and in Sub-Saharan Africa is a relatively low 85%. There are a number of factors at play here, with a general sense of optimism coming through; despite some specific economic and political difficulties, a broad feeling of increasing freedom and possibility and, in Brazil in particular, excitement about forthcoming events over the next few years. Being happy is a natural characteristic of Brazilian people and this innate ability to be happy is enhanced by the buzz around World Cup and Olympics – and, as we will see, it has a positive impact on other aspects of life too. One manifestation of the happiness in kids' lives globally is the important role played by humour – as well as bringing fun, it's an increasingly important communication tool which they use to negotiate their way through life. Two-thirds (64%) of kids globally agree "I use humour to help me get my way", with kids in Latin America a touch about average at 66% … though other emerging markets are even higher – for example, the average across SE Asia is 70% and in India it's as high as 80%. We looked at other factors in kids' lives which generate happiness. At the global level, spending time with family and friends rise to the top – and Latin America stands out as a region where family togetherness is particularly strongly aligned with kids' happiness, even more so than, for example, Sub-Saharan Africa or SE Asia. Globally, 48% of kids name spending time with the family as a top driver of happiness; this rises to 60% in Latin America. It's highest of all in Mexico – 70%. Indeed, Mexico has the highest agreement score globally on this measure. Children and parents actively enjoy doing things together as a family, and they also enjoy the company of the extended family of aunts, uncles and grand-parents, many of whom (as we know from previous research) live only a short journey or distance away. The importance of family as a happiness driver confirms what our Nickelodeon Family GPS studies have been showing increasingly. Family time is so important in the lives of young Millennials and they actively enjoy doing stuff together as a family. It's not just parents and kids – it includes grand-parents too, and family groups in all shapes and sizes. On the Nickelodeon side we conduct research into the shape of families every year. By exploring family life we reveal further shifting and fluidity in family structures - what family is as a concept is changing. Around the world, we are seeing increasingly varied shapes and sizes of families with single parents, adopted or fostered children, same-sex parents, or children raised by grandparents or other family members. This phenomenon has been labelled the "patchwork family", with new family members being stitched in along the way.
  • 212. Across Latin America, these new definitions of what makes a family are taking shape and particularly in Argentina where divorce is all the more prevalent and which is the first country in the region to introduce "same sex marriage". In the face of so much change and the breaking down of traditional family structure, people often speak of family fragmentation – and yet despite the myriad changes to the family unit, our research continues to paint a picture of increasing closeness within family households, regardless of their shape or size. And we can see here how kids are directly benefiting from these strengthening family values. Happiness outweighs stress by a factor of over three to one: while almost nine in ten young Millennials describe themselves as very happy, only 24% report high levels of stress; and our data shows that reported stress levels have fallen since 2006: on a 10-point scale, the 2006 mean score was 5.6, falling to 4.6 in 2012. Just as we saw higher happiness levels in Latin America compared with the global average, correspondingly kids in Latin America display less stress. Compared with the global average of 24% describing themselves as stressed, the overall Latin America average is just 17%: Babelfish Articles May 2014 – July 2014 20-7-14 Page 212 Brazil 20% Mexico 17% Argentina 14% And just as we have noted an overall global decline in stated stress levels among kids, we see this pattern across all three of our Latin America markets. The mean scores based on a 10-point scale are as follows: 2006 2012 Brazil 7.0 4.4 Mexico 5.3 4.2 Argentina 5.7 3.9 Kids in some other emerging markets also demonstrate below average stress levels, but the picture is mixed – for example, the SE Asia average is on the lower side but stress levels in China and Singapore are close to 40% whereas in Philippines it was as low as 10%; and Egypt and Morocco are both 30%. A top source of worry for kids around the world is doing well at school, and this is true of Latin America to even an greater extent. On average, 74% of kids globally worry about school whereas in Latin America it rises to 89%. However, the emphasis placed on family values in Latin America emerges strongly here too and in these markets the number one worry among kids is actually "making my parents proud". There are also several other areas of worry where kids in Latin America express particularly strong concern, as seen in this Top Ten list among Latin American kids: Latin America Global Making my parents proud 92% 71%
  • 213. Babelfish Articles May 2014 – July 2014 20-7-14 Page 213 Doing well at school 89% 74% Being safe 86% 65% Looking after the environment 85% 56% Having goals in life 82% 62% Having Facebook/social media hacked 77% 57% Looking good 75% 51% Not living up to my full potential 74% 59% Disappointing my friends 73% 61% Having money 71% 58% But despite the strength of worry expressed about specific issues, both in Latin America and globally, we are seeing a resilient generation who rise above it. The youngest Millennials are characterised by the positivity with which they approach challenge. This sense of positivity doesn't make them immune from chaos and crisis in the wider world, but it will help them cope. Our study includes a number of measures demonstrating this positivity – and how it shines through all the brighter in Latin America: Latin America Global I can accomplish anything if I work had enough 94% 90% I always try to be positive 90% 89% I don't believe people should talk about failure 69% 60% A great example of families coming together and showing a strong work ethos in building for the future can be found in Mexico, through the Consejo de Communications and its literacy initiative to get family members and children to read together by using Dora the Explorer (and other animated characters) to show that reading can be cool and generate passion for learning and development. Overall, when we look at kids across the world today, we can paint a picture of recalibration of happiness, less stress and a growing sense of positivity. These factors combine to form a "virtuous circle" of mutual support, helping to create a sense of confidence: belief in themselves, their future, their generation and their creativity. Eighty-five percent of kids in Latin America believe they will earn more than their parents (on par with the global average of 84%, and a demonstration of the sense of optimism and future opportunities mentioned above); and it's even stronger in Brazil – 89% compared to 84% in Mexico and 82% in Argentina; again, we see the influence of the up-coming World Cup and Olympics, creating opportunity and putting the spotlight on their country in a positive and exciting way – it's in the air and it's being constantly reinforced through commercial messages which are picking up on this sense of excitement and optimism by brands as diverse as Fiat and Vivo. Across Latin America, kids' belief in their future is aided by the confidence they express in their creativity – 93% in Latin America, a touch above the global average of 89%, and again kids in Brazil coming in highest at 95%, followed by Argentina (93%) and Mexico (92%). This confidence
  • 214. in their own creativity not only gives them belief in their futures, it is also a key factor contributing to the relatively low stress we have observed in Latin America's youngest Millennials. Little wonder that 86% (way above the global average of 77%) of kids in Latin America agree "#winning is a good slogan for my generation". Babelfish Articles May 2014 – July 2014 20-7-14 Page 214 2. Grounded Authenticity is a key value and kids today live with their feet firmly on the ground. Ninety-four percent report wanting to be true to the close circle around them and 93% to be true to themselves. As with positivity, authenticity is a hallmark of this generation which is expressed even more strongly in Latin America, where these figures rise to 96% and 97% respectively. To offer a couple of points of comparison with other emerging markets, Sub-Saharan Africa also tends to be above average and SE Asia is at the same high level as the global average. Kids across the world's emerging markets might be excited about what the future holds but they don't measure opportunity in material terms; even though the need to earn more money may be a factor in their lives, it isn't what colours their values and expectations. This desire to "keep it real" in life extends to the relationships which are most meaningful. When it comes to the people who inspire them or the people they trust, it's all about close family and friends. They might feel inspired by celebrities and sports stars, but they know not to trust them. At the global level, 59% of the youngest Millennials name a member of their family as the #1 best friend in their life – rising as high as 87% in Brazil. In Mexico it's also very high (68%) –but in Argentina it falls below average to 47%. Other emerging markets are high – both in parts of SE Asia (Philippines 69%, China 67%) and Sub-Saharan Africa (64%) – but nowhere meets the heights of Brazil on this measure. All of the measures we considered – inspiration, trust and closeness – point to the importance of the family in the lives of this generation – it's true for Millennials overall but even more so among the youngest Millennials – which is not surprising given how all our research over the last few years has pointed to the growing importance of family bonds. Every aspect of our analysis continues to point to this. For example, we have demonstrated the close alignment of family love with happiness and success in life: being part of a loving family is considered a key sign of success (second only to being happy); with 57% globally placing it in their Top 3 success drivers (62% in Latin America), it's ranked high above being rich (42% globally / 38% in Latin America), owning your own home (12% globally / 13% in Latin America) or looking good (9% globally / 7% in Latin America). As referenced above, for kids today, it's not about material success, it's about something more authentic and that brings meaning to their lives. Also, we have shown that spending time with family is a top driver of happiness (48% name it as one of their top five sources of happiness, rising to 60% in Latin America). It's not surprising therefore that the strong sense of being rooted in the family helps to keep this generation grounded and it impacts on their value system and how they feel about the world around them. 3. Sheltered Our study shows a pattern in which the last wave Millennials are at one and the same time becoming both more and less sheltered.
  • 215. The difference is clearly separated: in the real world, they are much more sheltered – "Velcro parents" are cocooning their children, restricting and controlling their interactions with everything; whereas in the digital world there is often little protection – kids have unprecedented exposure to global ideas and images, which can be good in broadening horizons but raises concerns about what's appropriate for young and impressionable minds. Sixty-seven percent of the youngest Millennials globally describe themselves as over-protected and 56% feel underestimated – they could be stretched more if given space to do so. On both of these measures, kids across Latin America tend to be a touch below average (63% and 49%); but in Brazil the scores are very high – 81% and 68% respectively. It could be that the sense of over-protection in Brazil is linked to concern about the level of violence and crime causing parents to Babelfish Articles May 2014 – July 2014 20-7-14 Page 215 keep an ever-watchful eye on their children's activities. In a more general way, as family ties grow tighter, there is less time and space for circles of friends to develop. While we've seen that family love is fundamentally linked to happiness , we can't help wonder - can there be such a thing as too much family time and space? … We'll certainly be keeping a close eye on this "Velcro-parenting" trend and its impact on kids going forward. "Velcro-parenting" doesn't protect kids in the digital world in which they are increasingly active. For example, 57% of kids today own their own mobile phone (and 28% a smartphone); 43% have their own computer; and 42% their own TV. Mobile phone ownership is particularly high across all the Latin America markets (at around two-thirds); almost half have their own computer – again, well above average, particularly in Mexico and Argentina. But the device where ownership in Latin America dwarfs the global average is the TV – at 60%, significantly above any other emerging markets. Computer ownership among kids is particularly high in Mexico – at 64%, this is one of the top countries in the survey, higher than any of the SE Asia markets (where the average across the region is 34%) and much higher than Sub-Saharan Africa (19%). Brazil 39% Mexico 64% Argentina 51% In all the Latin America markets, kids are much more likely than globally to have their own email or social media account – again, higher even than most of the SE Asia markets. Latin America Global Email 83% 67% Social media 83% 61% And in this digital world, Latin America kids are highly active, exchanging on average 14 digital conversations daily compared to the global average of 11 and with a higher number of online contacts: 171 compared to 145 globally. But here's where the need for greater protection rears its head as an issue to contemplate going forwards. Globally, kids say they have around 39 online contacts who they consider as friends although they have never met in person. This has increased from the low base of 5 in 2006. Today's average for kids in Latin America is even higher – 44 (even more so in Brazil – 64, compared to 36 in Argentina and 31 in Mexico).
  • 216. In fact, the average age when kids in Latin America first set up a social media account is 10 – they're frequently using a fake year of birth to gain access! This is particularly prevalent in Argentina where, among kids, 31% name using social media as one of their top drivers of happiness, compared to the global average of 15%; and kids in Argentina have huge numbers of online contacts … as mentioned above, the global average is 145 and the Latin America average is 171, but in Argentina it is 227. All of this is a clear demonstration of the extent to which today's kids are less sheltered in the digital world, despite the real-world trend towards over-protection. Babelfish Articles May 2014 – July 2014 20-7-14 Page 216 4. Proud to be Looking beyond their immediate world, we see kids today increasingly expressing a sense of affinity with their country. Their sense of national pride is growing stronger and they are more likely to believe in the importance of local traditions. Overall, we have seen a rise in the proportion of kids agreeing "I am proud to be from …" and who believe it's important to maintain local traditions: Proud to be Maintain traditions 2006 81% 60% 2012 87% 79% This sense of national pride among kids is above average across Latin America: Proud to be Maintain traditions Brazil 93% 84% Mexico 91% 91% Argentina 90% 91% This doesn't mean they take a narrow view: 74% of kids globally think it's great to have people from other countries coming to live here – an indication of the tolerance which is a key defining trait of this generation. In Latin America, this openness to embrace the world and other people is on par with or above average: 88% in Mexico, 79% in Brazil and 74% in Argentina. Similarly high agreement is displayed in the emerging markets of SE Asia and Sub-Saharan Africa; this could be aligned with the growing sense of optimism and excitement about future possibilities which we have evidenced among kids in these markets - they're on the up and they want to celebrate and share it. Clearly, kids of today have a highly nuanced sense of the wider world, which raises important questions for any global brand: what are the implications for those of us who want to connect with them? Ultimately what's key to remember is that geographical source can work for you, whether local or global. The youngest Millennials are taking an increasing interest in their own regions and locality – we often see this expressed in the interest they take in what's grown, produced or developed locally. But they also feed off what's happening globally and take a keen interest in adopting trends, brands and ideas from other cultures. This however doesn't automatically mean that "international" is better – any more than it would be true to state that "local" is better because of proximity and a sense of closeness.
  • 217. In the end it's all down to the extent to which you can demonstrate value and relevance to this emerging audience, regardless of source. Babelfish Articles May 2014 – July 2014 20-7-14 Page 217 5. More we than me Today's kids extend outwardly the spirit of positivity which we have noted in their actions and attitudes, demonstrating a commitment to community and to the wider world around them. • 88% feel it's important to them personally to help people in the community (above average across Latin America, averaging 95%) • 83% believe people do social / environmental work because they like helping others (rising to 93% in Mexico, with Argentina at 84% and Brazil a touch below at 77%) • 61% have taken part in an effort to raise money for a charity in the last year (higher in Argentina – 68%; a little lower in Brazil and Mexico – 53% and 50% respectively; the strength of this measure in Argentina aligning closely to the ethos within the education system which encourages citizenship and rewards positive community values and action). Against all of these measures, we also see higher than average tendencies in the emerging markets of SE Asia and Sub-Saharan Africa. A further example of this caring spirit which characterises kids in Latin America is their positive attitude towards sustainability and environmentalism. It's something kids feel strongly about the world over (with 94% agreeing that it's people's responsibility to look after the environment) but the Latin America average, at 97%, is even higher again. Digital media has a large part to play in broadening horizons and helping kids to be more outward-looking. It changes the way they think about the world, inspiring them to use the power they have at their fingertips in a positive manner. • 85% agree "my age group has the potential to change the world for the better" (above average across Latin America, averaging 91% - and a touch higher than SE Asia and Sub- Saharan Africa) • 71% say that having access to the internet changes the way they think about the world (in this case, Latin America is the same as the global average while SE Asia and Sub-Saharan Africa are a touch above average; but the Latin America average is brought down by the relatively low score of 60% in Argentina). However, today's kids don't see this as worthy of comment or think of themselves as "techy": almost two-thirds think that being connected is as much a part of everyday life as eating and sleeping – it's simply how life is today (and kids in Latin America share this feeling, on par with the global average). Through being constantly connected in a fast-moving world, it is natural for today's kids to constantly adapt to what's new and to be open-minded. It makes them resilient and life-ready. Summing up what we mean by More We Than Me, we can see that this actually helps to bring together several of the other strands we have outlined … Happiness levels outweigh stress by an average factor of over two to one and we have clearly painted a picture of a generation that shows an outwardly positive and generous spirit to the world around them. When they talk about sharing and connecting, it isn't just about Facebook and Twitter – there is an underlying sensitivity of approach to the people around them, demonstrated in the values they display, which suggests a much deeper and more meaningful level of connection.
  • 218. They are also aware of the importance of creativity and individuality – and they embrace difference. We are therefore happy to state that it's less Me than some people have wanted to paint; and, at the global level, much more We – opening up to and embracing the wider world. Just as we can see other aspects of key young Millennial characteristics resonating in this theme of More We Than We, when it comes to looking at the implications for connecting with them we can to some extent view these implications in tandem with the theme of "proud to be" and the importance of both local and global so long as it is relevant … We often talk about glocalisation in terms of brands - here we see a truly positive demonstration of glocalisation in action at a deeper level. Glocalisation means that they respond to and can get excited by what's happening at a global level – but the localisation aspect of glocalisation is also really important. It means taking global trends, ideas, brands and identities and making them relevant and meaningful at a local level. That's another example of this generation's ability to adapt and flex – the ability to broaden horizons and take the wider view without losing sight of what's important close to home; and wanting to make the most of both. Their openness to people, culture and attitudes extends further to products and experiences too. Picking up on the spirit of positivity as well as generosity, any communication which seeks to generate a sense of "togetherness" is likely to resonate with this generation. Young Millennials across the globe are looking to experiences to provide happiness – keying into emotional touch points that build on personal passions but also connect them to others who can share in those passions and pleasures. The picture we see emerging in Latin America mirrors all of this – but even more strongly. There are indications of an even faster pace of change which could seem daunting but in fact seems to be energising and exciting these young consumers. Babelfish Articles May 2014 – July 2014 20-7-14 Page 218 Summarising and looking forward Looking forward, our study paints an early picture of the generation to follow. The key influences we see impacting on Post-Millennials include: • The global economy – with parents more likely to be risk averse, families are more likely to work together to solve problems and save money • Family time together - pulling resources within the family means spending more time together. Additionally, we see parents working to create controlled environments in an uncertain world • Technology – they will have no memory of a time where most kids didn't have their own digital devices. Internet access has always been high-speed, instant and mobile and they will take interactivity for granted We see this leading to a generation likely to become sensitive and well socialised, able to compromise. Discussion and persuasion are likely to become their trademarks. And these are trends which we will continue to monitor closely as this new emerging generation becomes more established. At Nickelodeon, research is where we begin. It shapes our brands, inspires our content and helps us to communicate with our audiences. We will be applying the learning from Kids of Today and Tomorrow to every aspect of our strategy, whether it's creating more immersive multiplatform experiences or adjusting the tonality of our linear TV content.
  • 219. Babelfish Articles May 2014 – July 2014 20-7-14 Page 219 Latin America inside out: past, present and future! Marita Carballo and Constanza Cilley, ESOMAR: Latin America, Buenos Aires, April 2014 Summary This paper discusses international attitudes towards Latin America as a whole and its individual countries, broken down by region and country, finding that impressions are broadly favourable whilst ill-informed. In the past decade, Latin America has experienced a period of resurgence, with strong growth and improved social outcomes. International comparisons of measures such as life satisfaction find Latin Americans are amongst the happiest people in the world, whilst Latin America's reputation around the world, explained by region and country, is broadly favourable. Only Mexico attracts more unfavourable opinion, possibly due to crime and drug trafficking in that country. There is a lack of knowledge about Latin America, its features and contradictions, with the FIFA World Cup and Olympic Games an opportunity to explain these. Latin America: Growth and evolution In the past decade, Latin America has experienced a period of resurgence, with strong growth, low inflation, and improved social outcomes. Prudent macroeconomic policies in some countries and important structural reforms have been the cornerstone of this performance. Except for the period immediately following the 2008 global financial crisis, exceptionally benign external conditions also have been an important factor. Since 2003, the middle class in Latin America grew 50%, and now represents 30% of the population. This growth meant going from 100 million people in 2000 to 150 million at the end of the last decade, according to the World Bank. During this period, while incomes grew and the gap between rich and poor narrowed, the percentage of poor people diminished considerably, from 44% to 30% of the population (50 million people are no longer poor). As a consequence, nowadays in Latin America the percentage of poor and middle class population is similar – a sharp contrast with the past, when there were 2.5 times more poor people than middle class. From 2003 onwards the region has experienced an unprecedented process of development whose outcome has been a reduction in poverty and unemployment as well as a reduction in the gap between rich and poor in some countries. Despite the international crises the situation has improved vis à vis the end of the 1990s (see figure 1). Figure 1: Annual GDP growth 1995-2012 (%) Latin America and world Source: World Bank (world data) & Cepal (Latam)
  • 220. Public opinion has changed as a consequence, and people believe since 2003 that the economic situation is better compared to that during the 1990s -- however, after the 2008 crisis their assessments have worsened. A majority believes that income distribution is still unfair. Moreover, according to the 2013 survey by Latinobarometro, 68% of the region's inhabitants identify themselves as lower-class, 30% as being part of the growing middle class and 2% see themselves as upper-class. Among the 68% who place themselves within the lower-class, half are in a precarious situation and some do not have enough money to buy food. Clearly, there are two Latin Americas: one which enjoys the benefits of economic growth and one which watches while the other enjoys. We are seeing more and more protests as a consequence of citizens' awareness of the shortcomings of the economic, political and social system. There are demands for more democracy. The agenda of our region shows some important changes. The main concern is public security, which is seen as the main problem in most countries, while references to unemployment and the economy have lost its former pre-eminence due to economic growth. The concern for corruption has remained unchanged (see figure 2). Babelfish Articles May 2014 – July 2014 20-7-14 Page 220 Figure 2: Main problem of the country – Latin America Source: CIMA 2011. Even in a context of crisis, Latin-Americans believe globalization has had positive effects on their countries and approve in general of free trade agreements. Approval of the Presidents shows the most positive opinions since 2003 – economic growth has made room for the recovery of personal leadership. Likewise, approval of democracy is high, in the sense that the majority believe it is the best system of government. However, there is criticism towards the way democracy works. A significant proportion of the population is not satisfied with democracy (see figure 3). And low confidence in the courts, Congress and political parties, as well as the persistent concern for corruption are still a sign of the region's troubles.
  • 221. Figure 3: Satisfaction with democracy: Total Latin America 1995 - 2013 Babelfish Articles May 2014 – July 2014 20-7-14 Page 221 Source: Latinobarometro 2013 Q. In general, would you say you are very satisfied, somewhat satisfied, not very satisfied or not at all satisfied with the working of the democracy in (country)? (Here only 'Very satisfied' plus 'Somewhat satisfied' and 'Not very satisfied' plus 'Not at all satisfied'. The gap between trust in the President and distrust in institutions hinders the generation of long-term certainty and a significant improvement in democratic governability. According to the last Latinobarometro report, Latin America has never been as rich as it is now. At the same time, its inhabitants have never been in such a state of alert. Citizens of rich and poor countries, governed either by the left or the right, are defending their rights but not fulfilling their duties with the same enthusiasm. Democracy has "sold" itself well to the region's citizens and they have taken it seriously. The region has expressed itself and in the face of prosperity now wants distribution. When there was nothing to distribute, there was stoicism in poverty. Now, there are
  • 222. demands. Democracy in Latin America faces the challenge of strengthening its institutions as a precondition of sustainability and growth. Our region leads the ranking when it comes to the happiness of its peoples. In fact, all the countries in the region analyzed by WVS are above the mean world score, with the exception of Peru. Two countries in our region, Colombia and México, lead the ranking of life satisfaction and four countries among the top 10 are Latin American (Argentina, Colombia, Guatemala and Mexico). It is interesting to highlight that these nations share the ranking with countries of high level of development such as Switzerland, Norway, New Zealand and Canada (see figure 4). Babelfish Articles May 2014 – July 2014 20-7-14 Page 222 Figure 4: Ranking of life satisfaction (1 = unsatisfied, 10 = satisfied) Blue shading = Latin American countries; Grey shading = Countries below world scores (6.77). Source: World Values Survey Brand Latin America Not only is Latin America going through a very positive period compared to its own history but also, and remarkably, compared to most of the rest of the world. For instance, while Spain, Greece and Portugal deal with double-digit unemployment the jobless rate in Latin America fell to 6.4% in 2012. Many Latin Americans who migrated to Europe in search of work in the past are now returning home. Thus, the paper analyses a fourth factor: the Brand Latin America - how has this growth changed the opinion Latin-Americans and the world have of the region and its position in the world? Can we talk about a brand Latin America? To understand how Latin America is seen in and outside the region we will look at the results of a recent worldwide survey by WIN-Gallup International conducted in around 60 countries and into the Latin America Seen by Experts research by Voices!, which collects the opinion of more than 15 renowned social scientists. It was conducted by email in late 2013 and the beginning of this year through open questions and includes the opinion of social scientists in Latin America, North America, Asia, Africa, Western and Eastern Europe as well as the Middle East. How the outside world sees Latin America
  • 223. We included some questions regarding Latin America in the global barometer of hope and despair, an annual survey started and designed under the chairmanship of Dr. George Gallup in 1977. It has been conducted every year since then. This year it was carried out by associates of WIN in 65 countries. In each of them a sample of around 1,000 men and women were interviewed either face to face (32 countries; n=37,069), via telephone (11 countries; n=8,793) or online (22 countries; n=21,764). The field work was conducted during September 2013 - December 2013. In general the margin of error for this kind of survey is +3-5% at 95% confidence level. The global average has been computed according to the share of the covered adult population of the countries surveyed. Asked about their general opinion about Latin America as a region, 50% of the people consulted expressed a favorable opinion (15% very favorable, 35% favorable), whereas 25% said it was unfavorable (19% somewhat unfavorable + 7% very unfavorable). A quarter of the population (25%) did not answer. In all regions we found more positive than negative opinions. However, Latin America is the only region where we find that positive opinions are held by the vast majority (60% vs. 31% of negative opinions. 10% did not respond). Western Europe is the region most critical of Latin America, with 39% holding a negative view against 44% positive and 18% of non-response). In the Middle East, opinions are much more divided with a third of positive views (34%), against a similar number of negative views (30%) and the remaining third (36%) of non-response. This is also the region with the highest non response rate. In the remaining regions roughly half the people surveyed hold a positive view, two to three out of ten indicate a negative view and two or three out of ten were a non-response (see figure 5). Babelfish Articles May 2014 – July 2014 20-7-14 Page 223 Figure 5: Opinion of Latin America. total and by region Source. WIN survey in 58 countries. End 2013. Population representative samples. Among the countries that better assess Latin America, we find Colombia at the top, with 79% of favorable opinions, followed closely by Peru with 74%. It is interesting to find that besides Latin American countries such as Brazil and Argentina the nations with the best image of our region are underdeveloped: among them Bangladesh, South Africa, Georgia, Philippines, India and Russia. On the other hand, we find that Mexico is the country with the most unfavorable opinion of the region among the nearly 60 countries surveyed (50% negative as against 48% of positive views).
  • 224. It is the only country of the region where the opinion is not clearly favorable, perhaps reflecting a strong discomfort with their domestic troubles, which include economic problems, drug trafficking, violence and rising taxes (see figure 6). It is interesting to find Spain, a country with strong links to Latin America, among the countries with the worst image about the region (45% unfavorable against 42% favorable) -- the Spanish social scientist surveyed spoke about poor democracies and governments, tough and conflictive region and ended the interviews pointing out that Latin America has always been a promise that never materializes. Significantly in Germany, one of the world powers, half of the population (46%) holds a negative view. Iraq, Tunisia, Saudi Arabia, Belgium, Hong Kong and the Netherlands are also among the 10 most critical countries. It is interesting to have a closer look at the opinion of specific countries, namely Spain, a country so strongly linked in its history to the region. Although, as mentioned above, opinions in Spain are divided (42% positive vs. 45% negative) these figures conceal sharp differences regarding individual Latin American countries. In the case of Brazil, Argentina, Costa Rica and Chile, around half of Spaniards have a favorable view (although a significant 25% have unfavorable opinions of Brazil and Chile and 40% of Argentina). The rest of the countries are viewed mostly negatively -- 61% in the case of Colombia and 63% in the case of Venezuela. Portugal, another country closely related to the region through its history, holds divided opinions (43% positive vs. 39% negative). However, when it comes to Brazil, the country with which the Portuguese share their language; we find that 72% hold a positive opinion. We analyzed the image of Latin America in the countries with the highest GDP per capita. North Americans hold a positive view of their neighbors to the South (49% favorable against 29% unfavorable). However, Latin-Americans have a much higher positive opinion of the US (64%). In China, a key export market for Latin America's commodities, 44% of those surveyed hold a favorable opinion of the region, while 36% does not and two out of ten did not answer. In Japan, the third country in importance according to GDP per capita, seven out of ten don't respond. In Germany, France and the UK, opinions are divided although the positive view is slightly higher. Babelfish Articles May 2014 – July 2014 20-7-14 Page 224
  • 225. Babelfish Articles May 2014 – July 2014 20-7-14 Page 225 Figure 6: Opinion of Latin America by country Source. WIN survey in 58 countries. End 2013. Population representative sample And what about the BRICs? Around six out of ten inhabitants of those surveyed have a positive view of Latin America (61% in Brazil, 59% in India and 56% in Russia). In China the figure drops to 44% against 37% of negative views (see figure 4). The world survey shows that Brazil is the best rated country in the region (61% of positive opinions), followed closely by Argentina (57%). Half of the people surveyed hold a favorable
  • 226. opinion of Mexico (against 28% with a negative opinion). Chile, Venezuela, Peru, Costa Rica and Panama are rated positively by roughly 40% and negatively by 25% of respondents. In the case of Colombia, 38% hold a positive view against 34% negative (see figure 7). Figure 7: Opinion on different countries of Latin America and the region as a whole Source. WIN survey in 58 countries. End 2013. Population representative samples. Given Brazil's growing influence in the world, it is worthwhile to have a closer look at its citizen's views about Latin America -- 61% have a positive view, 27% negative and 12% do not answer. Brazilians rate their own country (69%) and Chile (67%) even better than the region. Mexico (61%) and Argentina (56%) are also regarded by the majority of Brazilians with benign eyes, although in the case of Argentina around a third (30%) holds a negative view. Peru (49% against 25%), Costa Rica (43% against 23%) and Panama (37% against 27%) are regarded with moderate optimism. Brazilians hold divided opinions about Colombia (39% positive against 41% negative) and Venezuela is the only country in the region Brazilians evaluate more negatively (43%) than positively (38%). On the other hand, Brazil is rated positively in all countries surveyed. Moreover, in 43 of the 58 nations included in the survey, at least 50% hold a favorable view. As an exception to this trend opinions are tied in Belgium (37% positive against 39% negative) and Saudi Arabia (35% against 36%). Bangladesh, Peru and Colombia are the most favorable towards Brazil. It is interesting to note that in all countries Brazil has a more positive view than Latin America as a whole. Japan is where the gap is greater: 29 points between the positive opinion about Brazil and the region as a whole. Babelfish Articles May 2014 – July 2014 20-7-14 Page 226 How experts see Latin America What comes first to mind when you think about Latin America? The region is mainly associated with the Spanish language, football and Brazil as the giant of the region. There is also a reference to "nice people", as well as mentions to the personality of people and Latino style of life (relaxed spirit, enjoying life, happiness, and solidarity). At the same time, social scientists mention negative aspects such as drugs, poverty and lack of democracy (inequality, corruption, violence, organized crime). In some cases, famous characters such as Evita, "Che" Guevara, Hugo Chávez and Shakira are mentioned (see figure 8).
  • 227. Figure 8: What first comes to your mind when we speak about Latin America? Source. Latin America seen by experts survey conducted by VOICES! 2014 Babelfish Articles May 2014 – July 2014 20-7-14 Page 227 Perception of changes in the last years Latin America has experienced important changes in the last decades which are mainly referred to by our respondents as positive - especially those related to social integration, poverty reduction, the narrowing of the gap between rich and poor, the expansion of the middle class and the strengthening of democracy (all these aspects are mainly highlighted by Latin American respondents). In this context, Brazil appears as the powerful economy of the region. To me many things seem very positive and promising. Societies have changed from military rule to democracies, many countries are now modern and the economic trend has been good, at least in the eyes of those who live in stagnating Europe. Of course there are problems and differences between Latin American countries but the region as a whole seems to be in a position where anything is possible. Somehow it seems that Latin America is in a transition "from an object to a subject." (Finland) It is becoming a booming part of the world. (Germany) Rapid growth, emancipation from the USA, peace and democracy, more regional integration. (Bulgaria) Brazil`s takeoff surprises me. (USA) It seems the time of brutal dictatorships has gone, while there is now groundbreaking social legislation as well as a drive to be independent of the USA. (Kenya) In the last 3 decades, Latin America has achieved important changes related to democracy, although some of them are only circumscribed to democracy merely as a mechanism to elect a government and not as a way of life. (Argentina) The main change that our region is experiencing is the empowerment of big sectors of society that before did not have basic rights and today they are present. This empowerment is sometimes channeled by wrong means (violence, lack of institutional stability) but the deep process behind it is clear and in my view, irreversible. (Uruguay) The role of the region in the world
  • 228. The analysts surveyed regard the region as dynamic, growing with comparative advantages given its natural resources. Its role is seen as increasingly significant and autonomous of the USA both in political and economic matters. Latin America's markets have been enjoying an increasing strategic role within the global economy over the last decade. (Italy) Latin America still has weak presence in the global decision making process, but it is slowly increasing. (Georgia) There is also a somewhat utopic view that points to a Latin American model seen as an alternative to the US and global capitalism. This view is more frequent in underdeveloped countries. A meaningful and unique role is on the rise. There have been two ends of a spectrum, in which one was excessively subordinated to the USA while the other was in revolt against it. Now, instead, a more home grown basis of influence in the world appears to be building up, although it is yet to shape. (Pakistan) It could serve as an example of alternatives to global capitalism. (…) If South America can shake off the dominance of North America, it has the potential to develop alternative social and economic systems, not driven by global capitalism. (Kenya) However, for respondents in the region, the role is less meaningful and the future will not bring a leading role in global affairs. Babelfish Articles May 2014 – July 2014 20-7-14 Page 228 The future: Social, political and economic aspects The analysts surveyed foresee a rather promising future, with a stronger middle class thanks to the economic boom, although this may create political and social tensions. Some doubts appear regarding the prospects of becoming something more than a supplier of raw materials. In the social arena there will be a consolidation of the middle class. In the political arena I forecast a better understanding and dialogue between the political parties. (Spain) Latin America will play a crucial role in the social, political and economic arena only if longer-term objectives are adequately addressed, such as the improvement in the quality of education and technical training, the enhancement of its competitiveness and productivity through the introduction of innovative technology and the modernization of infrastructures. (Italy) Looking into the future, the challenge is to solve the debts that a decade of growth; relative political stability and growth of the middle class have left. In politics it means reinforcing the institutions and improving the efficacy of the state against the growth of organized crime and drug trafficking. In the social sphere it means reducing the high levels of inequality by improving education and regarding the economy it means diversifying the economic structure. The excessive dependence on the price of raw materials must be reduced. (Argentina) Barriers to development Among the barriers to development in Latin America, the most mentioned are the quality of the education and problems related to crime and drug trafficking. This is also related to criticism of the political class and corruption in all levels. Resources
  • 229. The region is mainly associated with the vast extensions of land and rich natural resources. At the same time, human capital appears as an asset that the region can take advantage of led by a middle class which is seen as young and with a strong drive for progress. The periods of political instability and recurrent dictatorships, related many times to serious economic difficulties, are contrasted by some analysts with the relative political stability of the last years, with growing democracies. This is seen as a sign of the potential of Latin American societies to adapt and overcome, learning from the recent history and reformulating it in a positive way. Babelfish Articles May 2014 – July 2014 20-7-14 Page 229 Natural resources. Excellent human capital. (USA) People, education and rich lands, sources of fresh water and rivers. (Emirates) Its people (relatively large and moderately growing population). Its worldview (in comparison with the rest of Western civilization) is less materialist, more oriented to preserving family ties and less race conscious). These values, in my view, are more likely to be strengths over the next fifty years. In addition, the Latin American population has successfully emerged out of a century of hardships (20th century) during which it survived economic hardships and political adventures. These are important assets to build a bright future. (Pakistan) Latin America in the global media Our region is not granted a relevant space in the global media. Analysts speak about a scarce coverage lacking analytical depth and many times not going further than sports and crime/ violence/drug trafficking, a coverage that generates the idea of a dangerous region. Even within Latin American countries, coverage of regional news is poor and often more focused on negative news than achievements. Very poor coverage: Soccer / Crime. (Germany) Latin America draws limited news coverage in Italy. Latin America is often depicted by the Italian media as a region of contrasts: extreme poverty vs. rapid economic growth; insecure region vs. friendly environment; development of urban areas vs. underdevelopment of large rural areas, etc. (Italy) None at all (Kenya) Very little and only when there is trouble! (Emirates) The focus is on crises. Coverage is great in "The Economist" and some other sources, but everyday coverage on television is spotty. There is a great difference in coverage for the intellectual elite of the USA and coverage for average citizens. The former can be excellent, but the latter is poor in quality. (USA) Can we speak about cohesion in Latin America? We asked the surveyed social scientists whether in their view one could speak of common regional values other than sharing a geographical space. The main element they bring about in their answers is the language (except for Brazil). A shared language speaks about a culture with common traits given by a shared history. Countries in Latin America share a mixed historical heritage: first populated by Native American groups (Maya, Aztec, and Inca), then colonized by the Europeans in the late 1400s and dominated mainly by Spaniards and Portuguese for more the 300 hundred years. (Italy)
  • 230. Definitely Latin America as a region is very integrated and in that respect is comparable only to Europe. The same language (except Brazil) is the highest advantage in that respect. (Bulgaria) Babelfish Articles May 2014 – July 2014 20-7-14 Page 230 The countries share a common history, language and culture. (USA) There is a common root. A lot more than sharing a geographical space. Traditional values: emphasis in religion, family, tradition, primary ties. These are not found in the rest of the world. Also a strong emphasis in self-expressive values. It is the only continent where these two structures are combined. (Uruguay) The effects and consequences of the Hispanic phenomenon in US is one of the evidences that our region is much more than a common space. (Argentina) However, this does not mean there are no differences between countries. Therefore, all countries in Latin America are a blend of different cultures (Native Americans, European, and African). At the same time, Latin America appears as a vast region with an enormous diversity, very different levels of development among countries and wide disparities in economic and social conditions between urban and rural areas. (Italy) Cultural, economic and political differences among countries and within countries are sometimes vast, but there are overarching commonalities. Differences between countries and also between regions depend on the economic base, on elements of culture and on leadership. (USA) One of the challenges of the region is building a culture where the variety of races and cultures is seen and appreciated as richness (Colombia) Results are clearly consistent with the main conclusion Ronald Inglehart and Marita Carballo arrive at in their article Does Latin America exist? They pointed out that a study focused on the distinctive features of Hispanic culture vs. Confucian or Anglo-Saxon culture might come up with far more striking contrasts between the world views of the respective peoples. They find coherent and distinctive cultural patterns that can readily be described as Latin American, African, Confucian, English-speaking, ex-Communist, and so forth. The World Values Surveys reveal huge differences between the basic values of people in different cultural zones. These cross-cultural differences are coherent and relatively stable, and they have important behavioral consequences. Though the importance of economic factors is evident, in keeping with modernization (and post modernization) theory, a society's religious institutions, political experience, language, geographic location and other factors also play important roles in shaping its value system. Economic factors alone do not determine what people want and how they behave. The world view of a given people reflects its entire historical heritage. Latin America does exist. (See figure 9.) The challenge of peering into the future Latin America is still seen as a faraway and exotic part of the world. From the idea of a violent continent dominated by narcos, to the green dream of the immense natural resources, perceptions of Latin America can be as imaginative as diverse. The study shows there is lack of knowledge of the regional, national, economic, social, political and cultural spheres. The economic advances and poverty reduction over the last decades have caught the attention of the world but the region is still unknown. These transformations in the way of thinking about the economy, social equity and politics in the region have also created conflict (even polarization) within many Latin American societies and the tensions and partial biases that derive transcend towards the projected image in the external perceptions, leaving our region as a dynamic unknown concept that has not yet been resolved and with premises that are sometimes contradictory.
  • 231. The greatest challenge is then making Latin America visible in an integral way, with its diverse societies, natural resources, political conflicts, threats to security, and its contradictions in those crises where the old is not yet dead and the new is not yet born (or stabilized or consolidated) There are opportunities in 2014 to take advantage of events that can call the attention of the international community. The World Cup and Olympics in Brazil and also the personalities associated with the region can make people from other parts of the world curious and willing to know more about us. Babelfish Articles May 2014 – July 2014 20-7-14 Page 231 Figure 9: The cultural map Source. World Values Survey Beyond brand tracking: Coca-Cola and the 2014 World Cup Gabriel Aleixo and Flavio Marcondes, ESOMAR: Latin America, Buenos Aires, April 2014 Summary This paper describes the development of tools to track the effectiveness of campaigns by Coca- Cola, the beverage multinational, surrounding its sponsorship of the 2014 FIFA World Cup in Brazil. Coca-Cola wanted to be able to measure the effectiveness of its integrated
  • 232. communications plans, including understanding the contribution of each campaign and campaign medium. An emotional approach to measuring campaign effectiveness was able to produce actionable results which in turn allowed Coca-Cola to optimise its strategies, understand the importance of different media for campaigns, react to extreme market conditions and focus on relevant brand indicators. This method allowed the company to understand the contributions of various mediums such as TV, social media, packaging changes and much more. Babelfish Articles May 2014 – July 2014 20-7-14 Page 232 Introduction In 2007, Brazil was officially selected as the host country for the 2014 World Cup, setting off a flurry of activity – by the government to update infrastructure, certainly, but also by brands to craft effective marketing campaigns leading up to and during the event that would generate long-term positive business results. For Coca-Cola, one of the global sponsors of the 2014 FIFA World Cup, these preparations were especially critical. The brand would need to develop approaches and learn how to engage with consumers in the context of this event beforehand, in order to leverage the power of its global sponsorship in "the country of football". It had a not to be missed opportunity to do this with the 2013 FIFA Confederations Cup, which also took place in Brazil. This event is essentially a rehearsal for the World Cup, and is traditionally held by the host nation the year before the larger tournament. For Coca-Cola, it had the same potential – an excellent environment to test their integrated communication plan before the main marketing event. This paper explores how Coca-Cola used an innovative emotional approach to brand tracking – rooted in modern theories about decision making and behaviour – to meet the challenge of preparing for the World Cup. It looks at the emotional measurement methodology it used, at the broad findings about mixed media touch points it uncovered, and finally offers a case study in how emotional understanding can help a brand quickly navigate unexpected external events. The promotional challenge Measuring campaigns' effectiveness and their contributions to brand equity and business results is one of the most important parts of market research – and one of the most difficult. Each year, advertisers spend very large portions of their budget on promoting their brands via marketing campaigns; however, understanding the return on these investments has always been a challenge. As industrialist John Wanamaker famously put it: "Half my advertising is wasted, but I don't know which half". Digital marketers would argue that Wanamaker's paradox has been solved by the plethora of digital measurement tools available. But in fact, constant changes in the media and competitive landscapes have simply made the picture more complex. Never before have brands had so many tools at their disposal to engage with consumers, promote their products, and interact with their targets. What was once a relatively simple decision in terms of budget allocation has become an extremely complex puzzle of choosing which medium, for which purpose, at what moment, and with which objectives. To make matters even more complex, advertisers often need to make these decisions supported by little or no comparative data on the real effectiveness of these new mediums. What may seem like a sensible investment may, in reality, have little measured effects. Coca-cola's 2014 world cup goals
  • 233. As one of the largest brands in the world and a sponsor of the World Cup, Coca-Cola didn't have room for such ambiguity. To launch a successful integrated marketing campaign the following year, they would need to gather insight from their 'test environment' – the 2013 Confederations Cup. Coca-Cola's objective for the World Cup was to drive brand engagement and consequently, sales. However, Coca-Cola already had close to 100% penetration in market and also enjoyed high levels of Share of Voice. Driving short-term sales alone would not suffice. Achieving its objective would require a very important and deep change of behaviour and perception within consumers. Therefore, Coca-Cola needed a tool for the continuous tracking of their integrated communications plans, which would be able to measure the effectiveness and contribution of each campaign, of each medium within the campaign, and their impact on brand equity and consumption within the main targets. Furthermore, to help them understand engagement of consumers with the brand, it needed to be a tool that delivered where traditional brand tracking could not – by providing insight into the emotionally charged relationship between a consumer and a brand, and delivering key takeaways to foster it. Coca-Cola approached BrainJuicer to launch a campaign effectiveness tracker for the brand in Brazil. BrainJuicer have pioneered an approach to research which emphasises people's fast, intuitive and emotionally-led decision-making – what Nobel Laureate Daniel Kahneman calls "System 1" decision-making. Using its proprietary System 1 Brand Tracking tool, BrainJuicer would be able to assess and track the emotional response to the brand. This would include evaluation of all Coca-Cola's different touch points, exposure to those touch points, and their contribution to engagement with consumers. Before we explore how Coca-Cola specifically used these tools, it's worth exploring the underpinnings of the emotional approach to brand tracking and the evidence why emotion is so crucial. Babelfish Articles May 2014 – July 2014 20-7-14 Page 233 System 1 brand tracking BrainJuicer's System 1 Brand Tracking approach is rooted in recent advances in psychology, neuroscience and behavioural economics – most notably, the work of Daniel Kahneman, the Noble Prize-winning author of Thinking, Fast and Slow. In this seminal book, Kahneman identifies the two processes people use to make decisions – fast, intuitive and emotional System 1 and slow, analytical System 2 – which have profound implications for marketing and marketing research. Traditional brand and campaign tracking emphasises conscious and considered measures like ad recall, cut through and purchase intention. These measures assume that System 2 is ultimately responsible for our decisions about brands. But this is not the case. System 2 thinking is exhausting and we avoid it where possible, allowing the emotionally-led System 1 to take the lead. Therefore, it's critical to understand how people feel about a product or a brand – because these emotions are the foundation of their decision whether or not to buy it. So the approach BrainJuicer adopted for Coca-Cola was centred on understanding and measuring what really matters – emotion. To get at emotion we used FaceTrace, an award-winning tool for measuring emotion that we describe fully below. This measure gives System 1 its proper, primary importance in brand tracking, letting us measure the emotional footprint a brand leaves in its engagement with consumers. This type of approach was far better aligned to Coke's objectives – understanding deep behavioural and emotional shifts around brands - than traditional measures. Facetrace and EiA
  • 234. FaceTrace is based on the academic work of eminent psychologist Paul Ekman, the pioneer and highest authority in the study of understanding emotion via facial expressions. His research demonstrated that there are seven basic globally consistent human emotions, regardless of culture, race and gender. These are happiness, surprise, sadness, fear, anger, disgust and contempt. FaceTrace asks respondents to choose from these seven faces outlined by Ekman, in addition to an option for neutrality, in response to stimulus presented (ad, brand or experience). After choosing a face, the respondent is asked to choose from three further intensities of that emotion. This then provides an Emotional Intensity Score, from which the EiA – Emotion-into-Action score is calculated (referred to as brand engagement by Coca Cola). Babelfish Articles May 2014 – July 2014 20-7-14 Page 234 Figure 1: Facetrace The support for emotional research So BrainJuicer's System 1 Brand Tracking approach turns traditional brand tracking on its head. Rather than focus on and test according to traditional rational metrics, BrainJuicer's approach, supported by FaceTrace methodology, measures the emotional impact of brands and communications. But how do we know that emotion matters? Large-scale studies of ad effectiveness have supported the case for emotional campaigns. In Marketing in the Era of Accountability (2007), the ground-breaking review of the IPA's (Institute for Practitioners in Advertising) UK effectiveness database, ad experts Les Binet and Peter Field concluded that emotional campaigns were far more likely to result in major business effects than ones with a rational, overtly persuasive element – even when that rational element was mixed with emotion (major business effects being defined as profit gain, market share gain and a reduction in price elasticity). They also concluded that campaigns whose goal was to make their brand famous resulted in the most business effects.
  • 235. From a System 1 standpoint, these results do not surprise. We know that emotion plays a vital role guiding System 1, while persuasive elements appeal to System 2 – but System 1 is far more powerful and influential in decision-making. And we also know that effortless mental availability of a brand makes System 1 more likely to choose it, which explains why "fame" campaigns do so well. In their updated and extended study, The Long and the Short of It (2013), Binet and Field looked at 996 campaigns over 30 years, covering 700 brands in 83 different categories. Their aim was twofold: they wanted to look at the long-term impact of emotional campaigns, and they wanted to shed light on the ideal split between brand building work (like emotional advertising) and direct sales activation. They concluded that emotional brand building is the key to long-term profit. Emotional campaigns, the study proved, are twice as efficient as rational messages, and deliver twice the profit with half the exposure. What's more, the IPA studies also demonstrated that any sales gains associated with message-based or direct response campaigns were likely to be purely short-term. In the long run those effects wore out quickly, and didn't produce much behaviour change or impact on equity. In Seducing the Subconscious, author and brand communications pioneer Dr. Robert Heath supports this notion. He draws from psychology, neuroscience, and behavioural economics to refute the time-old "persuasion" model of advertising and assert that our subconscious, emotional response to advertising is the primary driver of its long-term effectiveness. "Our explicit memory – the one we use to recall things – turns out to be really quite limited. That is why we find it hard to recall advertisements and easy to forget them. But we are also equipped with implicit memory, which is not only inexhaustible, but extremely durable. Implicit memory…stores pretty much everything we perceive. It is also able to connect these perceptions with semantic memory, where we store meaning."(Heath, Seducing the Subconscious, 2012, pg. 17). Therefore, because explicit memories tend to be more limited than implicit memories, facts and figures quickly fade; all that remains is the emotional feeling toward a brand and the associations that have been made. The importance of implicit memory is further cemented by Bryon Sharp in How Brands Grow. For brand growth, he argues, it's important to build 'market-based' assets, which comes in two forms: physical availability and distinctive branding using sensory cues (colours, logos, and design) that are easy to remember and recall. Sharp's stress on the importance of mental availability aligns with Binet and Field's original findings about the power of "fame" campaigns. Ultimately, Binet and Field conclude in The Long and The Short of It that despite the vast array of new direct response tools available to marketers, the balance of investment should still be tilted towards brand building. Sixty percent of efforts should go to brand building, 40% to activation – and the best way to build brands is via emotion. All of this has important implications for the business objectives of Coca-Cola in Brazil. With their huge market penetration and high share of voice, short-term sales gains were a secondary consideration compared to the opportunity the Confederations Cup offered for encouraging long-term shifts in attitudes and behaviours toward their brand. The marketing literature – from Binet and Field, through Heath, to Sharp, all pointed to the conclusion that to get these long term effects, the brand needed to tap into the consumer subconscious and implicit memory, and get there via powerful emotional advertising. Babelfish Articles May 2014 – July 2014 20-7-14 Page 235 The system 1 brand tracking approach for coca-cola in Brazil
  • 236. The above gives the broad outline of BrainJuicer's approach to brand tracking for Coca-Cola, and the principles behind it. This section looks more closely at the specific methodology. At the centre of the methodology was an online survey, with participants recruited from online access panels and screened for social demographic profiles and quotas specific to the project. Once qualified, participants answered the FaceTrace question about a number of brands. The survey leads with this emotional metric, so as not to prime emotional response with other, more rational questions. After the emotional question and a question on exposure (see below), we captured further diagnostic measures. The fieldwork took place on a continuous basis, with weekly quotas on a national representative sample covering all regions of Brazil. Data was weighted to account for regional distribution, age and social-economic levels. The sample was designed to allow for weekly reading of results, with cuts per two sub-groups within the total sample. We began data collection on February 25th, 2013, and the results discussed in this paper cover the period ending in October 6th, 2013. This period covered four full integrated marketing campaigns from the brand, which were tracked and analysed using this tool. All four campaigns were planned and developed under the larger communication platform created by Coca-Cola for the World Cup 2014, but each one of them had a specific theme, different set of assets and touch points, and different durations. The shortest of these four campaigns lasted 35 days and the longest 62, with the average campaign duration close to 50 days. All four campaigns had national coverage in Brazil. Initially, Coca-Cola decided to track their own brands and only include their competitors' brands once the approach was tested and validated internally. This paper focuses on discussing the tracking results of the Coca-Cola brand itself. Babelfish Articles May 2014 – July 2014 20-7-14 Page 236 Measuring brands vs. measuring touch points As described earlier, Coca-Cola needed a tool to track their integrated communications plans, which would be able to measure the effectiveness and contribution of each campaign and of each medium within the campaign. All the evidence we've discussed on how communication works called for an approach as focused as possible on the System 1, fast and intuitive way of thinking. We also applied this thinking to the way to determine the impact of each medium within a campaign - looking at the brand experience as a whole, without trying to break it down into artificial parts. Fully understanding the contribution of each medium within a campaign to the total brand equity meant two separate but parallel pieces of research and data collection. On one hand, as described above, we conducted continuous interviews with a representative sample of the target market, in order to track variations in feelings and emotions towards the brand. During these interviews, immediately after the FaceTrace question to understand their emotional response to the brand, respondents were shown a series of different brand assets, or touch points, which they might have been exposed to in the last couple of weeks. We asked participants to indicate whether they had seen each particular asset, in order to understand the total reach of each of those media in the market. The touch points were selected to represent the elements with most probability of reaching the target audience, and updated as the campaigns rolled out and evolved. One of the most important aspects of the selection of touch points was making sure all types of brand assets were covered. The Coca-Cola tracking included elements such as the product
  • 237. package, out of home communications, online campaigns and social media posts, as well as more traditional communication elements like TV advertising. In parallel with the continuous tracking interviews, we ran our second stream of research – in the form of periodical evaluations of the different campaign elements. These evaluations took place as a separate exercise, where a comparable sample of respondents was recruited specifically to produce learnings about each of the touch points we were tracking at that moment. These interviews focused on the brand assets, not the brand itself: participants would be screened, exposed to a series of stimuli containing the campaign's touch points and answer the FaceTrace emotional measure about each of them. We then analysed both sets of quantitative data together, aided by the large body of qualitative feedback on the brands and campaigns collected via open-ended questions in the surveys. This let us understand the impact of the different channels, media combinations and campaigns on emotional response to the brand – and helped us attribute variations in emotion to different elements of the marketing mix. Babelfish Articles May 2014 – July 2014 20-7-14 Page 237 Findings The analysis of the tracking data led to a series of insights and learnings. Some of these were very specific for a certain campaign, others were more general and relevant to the brand as a whole. For this paper, we've selected four key findings and an example of application of the results for discussion. Each finding is presented with a description of the data that supports the conclusions. All data is presented as indexes on the averages from the total research period, and always on total national representative sample. Brand engagement, brand performance or touch points emotional scores are always measured via the Emotion-into-Action derived from FaceTrace, as described previously. 1. The emotional model proved to be an effective way of tracking campaign performance The data consistently shows that the emotional model adopted to monitor the brand in the market is capable of detecting the contribution of campaigns to the brand's performance. In other words, campaigns made a real difference to how Brazilians felt about Coca-Cola. This conclusion is supported by comparing the brand scores between respondents who do not recognize any of the touch points we measured, versus those who recognize at least one of the elements of the campaigns. On all four tracked campaigns, the brand score among those who were exposed to the campaigns was higher than the scores among those who were not exposed. The average uplift on brand engagement produced by the campaigns was 16%, compared to the baseline of non-exposed. The data also shows differences between emotional uplift for each campaign, which can be attributed to a combination of the emotional pull of the campaign, as well as its total reach and the number of different touch points available. We will discuss this finding in more detail below. This means that the traditional model of brand tracking can be challenged. Traditional tracking relies on recall and other memory-based metrics like brand usage and purchase. An emotional model of brand tracking instead puts the consumer's natural and intuitive thinking at the centre of the results. Instead of breaking down the total "gestalt" of the experience with a brand into artificial elements or attributes, the emotional approach offers a more human and therefore meaningful picture of the brand perception, while still being able to capture nuances produced by the exposure to different elements of the brand experience. 2. Engagement is best built across a variety of touch points
  • 238. The data also shows that an accumulation of touch points produces a stronger impact on the brand, although the simple number of touch points is not the best predictor of in market effect. We analysed either five or six different touch points for each of the four campaigns we measured during the period. As discussed earlier, we took care to include a variety of different elements in the analysis, from the product package itself (which from time to time changed in line with the current campaign, e.g., with a special edition), to TV advertising, online banners, and social media activation. One of the campaigns didn't have any special packaging touch points, so in order to better compare the effectiveness of the four campaigns, the data was analysed excluding packaging. (We will discuss packaging below). These are the average emotional scores of all touch points measured for each campaign: Babelfish Articles May 2014 – July 2014 20-7-14 Page 238 Figure 2: Average emotional score of all touch points When the impact of these campaigns was measured by comparing those exposed versus non-exposed top them, the superior performance of campaign 3 could be observed in the market. Campaign 3 managed to produce an uplift of 18 engagement points (EiA points) to the brand score with only 5 touch points, while the average uplift produced by 5 touch points across all campaigns was only 14. At the same time, campaign number 4, which had a lower average emotional score for its touch points, produced less result for the brand. Campaign 4 produced an uplift which was 3 smaller than the average uplift produced by 6 touch points from all campaigns. The largest uplift in brand engagement produced by the integrated marketing campaigns was 18 points. This level was achieved by campaigns 1 and 2, when all 6 touch points were accumulated. These two campaigns had similar scores per touch points and similar reach. Campaign 3, on the other hand, produced the same level of uplift (18 points), but with 5 touch points only. These campaigns had better touch points' scores and, interestingly, slightly lower reach than the first two. Campaign 4 produced only 14 points of uplift on engagement with all of its 6 touch points, while its reach was even higher than campaign 3.
  • 239. Babelfish Articles May 2014 – July 2014 20-7-14 Page 239 Figure 3: Brand engagement uplift produced by campaigns On average across all campaigns, adding another touch point increased the overall uplift on brand engagement. However, this uplift per touch point, close to 3 points on average, was higher for the campaign with emotionally stronger touch points, and lower for the campaign with less efficient ones. The quality of the touch points and the impact produced by them on brand engagement were measured via separate surveys, with independent data collection. Clearly, campaigns with more efficient touch points were capable of producing more engagement with the brand. There is a case for integrated marketing campaigns as the best way to produce positive results to the brand, although the simple aggregation of more and more opportunities to impact consumers is not the most efficient way of driving brand performance. Planning each touch point to produce the strongest emotional impact possible is the best way to optimize results for the brand. It is necessary to look for more and more integrated evaluations of marketing campaigns, including all relevant touch points, as the best way to optimize marketing investments. Being able to compare touch points measure their impact for the brand let Coca-Cola understand and improve each touch point individually. Both these effects – the effectiveness of adding touch points, and the need to make each touch point emotionally powerful – tie in with what we know about System 1 and how decisions work. As Byron Sharp points out in How Brands Grow, the key to brand growth is both physical and mental availability. Repeated multiple touch points increase this easy mental availability for System 1. But the touch points must mutually reinforce each other. System 1 looks for fluency of information – it finds decisions easier if experiences do not clash or create ambiguity. (For instance – studies show that playing slow music in shops increases sales, but only if that slow music is in a minor key: major-key slow music disrupts fluency and kills the priming effect). So for Coca-Cola, it's crucial that different touch points support the same overall emotional effect. 3. Prime Time in a can: A closer look at Coca-Cola's iconic red can
  • 240. Three of the four campaigns that were analysed had a special edition of the package as a touch point with consumers. On average, these touch points were the ones with the highest emotional scores, with an index of 105 versus the average of all other touch points, including above-the-line communication. Out of all the touch points we individually evaluated, the one that got the highest emotional scores in any campaign was a special edition of the Coca-Cola can. This packaging was produced right before the period of the Confederations Cup in 2013, and it showed the three main colours of the Brazilian flag covering the iconic red Coca-Cola can. Figure 4: The three main colours of the brazilian flag covering the red coca-cola can This can produced a very strong and positive emotional response, as it was very different from the normal and expected product appearance, making it very noticeable and surprising but also meaningful. This element became the "lead medium" in its campaign, with more reach than open TV advertising. It is also interesting to compare the performance of the other two packs we tested. The first achieved an index of 101 versus all packs, while the second achieved only 91. Both packs were launched together with TV campaigns which had practically the same emotional scores. The first pack, in combination with TV, managed to produce uplift on brand engagement that was 6 points higher than the second pack in combination with TV. The first pack alone was able to produce uplift on brand engagement that was 5 points higher than TV advertising alone, reinforcing the importance of this element as an emotionally charged communication channel for the brand. Babelfish Articles May 2014 – July 2014 20-7-14 Page 240
  • 241. Babelfish Articles May 2014 – July 2014 20-7-14 Page 241 Figure 5: Brand engagement uplift touch point combinations The most common combination of media participants reported experiencing during the study was TV and Pack. To some extent this would be expected for a brand like Coca-Cola, with a very large penetration and high levels of share of voice. Nevertheless, the positive impact on brand engagement produced by this combination of media was very significant, and the differences in performance between different executions as well. The product packaging was the single most important brand touch point for Coca-Cola, but we would expect these findings to apply for most FMCG products and many durable goods. The results show that changes in product presentation can produce significant differences in the perception and consequently the brand performance in the market, and that these changes do not need to rely on a rational assimilation of product attributes or brand messages by consumers. The positive impact produced by the changes in packaging acts on a purely System 1 level and, nevertheless, have demonstrable results on engagement with the brand. 4. In brand performance, context is King During the tracking period, a unique opportunity emerged to understand the importance of context to the perception of brands. When Coca-Cola aired Campaign 1, engagement with the brand increased from an index of 99 to 108, an excellent result for a campaign with a good emotional score and a very high level of reach. Campaign 2 started from a higher base line left by the first one, with a brand engagement index of 104. During the campaign period, the measured reach for Coca-Cola was slightly higher than for Campaign 1, but the brand emotional score, instead of increasing, dropped to an index of 97. Both Campaigns 1 and 2 had very similar emotional scores for the average of their touch points, as presented previously.
  • 242. The uplift on brand engagement (comparing brand engagement between exposed and non-exposed) produced by Campaign 2 was very similar to the uplift produced by Campaign 1. Babelfish Articles May 2014 – July 2014 20-7-14 Page 242 However, the total brand engagement was on a lower level. What had caused this drop in effectiveness? Analysing the additional diagnostic data that was collected as part of the tracking surveys, we identified a very strong drop in interest with the World Cup subject among all targets, but more strongly among the core target group of Coca-Cola. The number of people claiming to be personally interested in the World Cup in Brazil decreased 20% in less than a month. (The specific reasons for this drop are discussed in the next section.) Coca-Cola is one of the main sponsors of the World Cup in Brazil and, according to the data collected during this tracking, is the brand most strongly associated with the event. When this change in mood towards the World Cup took place, the positive perception of the brand as a sponsor also decreased strongly. Less people saw Coca-Cola being a key sponsor as a good thing, which had strong negative implications on the overall emotional profile of the brand and people's engagement with it – even though the communication campaign was producing positive results for the brand at that time. The context in which the brand communicates with consumers is crucial to understanding the brand's performance. This is because System 1 is strongly influenced not only by personal factors, but also social and environmental elements. So the events surrounding consumers, from both a social and an environmental perspective will strongly impact feelings and emotions towards relevant brands. Linking the brand to a major event requires special attention not only to monitor the performance of the brand, but also how perception of the event itself is evolving and what this can bring to the brand. The 2013 protests in Brazil: A case of context importance in brand management So what was the event that had such a dramatic impact on the World Cup's reputation – and had potential to damage Coca-Cola's brand equity? It was a series of widespread protests that swept the main Brazilian cities in June 2013 – nicknamed the "Brazilian Spring" by some media channels. Over one million people took to the streets, demanding social changes and better Government services. Since a focal point of the protests was official corruption, the World Cup was quickly drawn into the unrest. An awful lot of money was changing hands in the lead-up to the tournament, and ordinary Brazilians had serious concerns about where it was going. Figure 6: Brazilian spring
  • 243. As the previous section showed, by using emotional engagement as its tracking measure, Coca- Cola was quickly able to discover both the impact on its brand equity and the cause of that impact. As a sponsor, Coca-Cola was implicated in the anger at the competition – even though it had done nothing directly to deserve such emotional impact. This is the kind of contextual dimension emotional research can unearth – potential damage to a brand that isn't caused by the brand, but still needs to be acted on. With timely tracking data, Coca-Cola was able to understand the impact of the unrest and rethink its role in the discussion around the World Cup. It decided on a quick adjustment in course and implemented a communication campaign addressing the theme of the social unrests. The campaign it switched to was its "Security Cameras" video – a compilation of security camera footage which initially suggested suspicious activity or criminality but in each case turned out to show ordinary acts of kindness and aid. This positioned Coca-Cola on the right side of the protests, without being overtly political – using the imagery of authority (surveillance footage) to promote the fact of ordinary people's innate goodness. Babelfish Articles May 2014 – July 2014 20-7-14 Page 243 Figure 7: Security cameras video "Security Cameras" was a hit – in fact, it went viral in several countries, and placed in the Top 10 of BrainJuicer's FeelMore50 list of the most emotionally powerful ads of 2013. Its original style and positive themes struck a chord and helped the brand rebuild its emotional engagement score. In fact, during the time "Security Cameras" was airing, Coca-Cola reached its peak of engagement for the tracked period. The decision to change course – taken with help from the tracking research – produced very positive results for the brand during a difficult and uncertain period for the country. Implications This case study clearly demonstrates the advantages of an emotional approach to brand tracking and campaign measurement. Emotional brand tracking comes out of the implications of System 1 thinking and decision-making, and its dominant influence over human judgement. But consumers aren't the only people who make System 1 decisions. Business people use it too, and one of our aims with any research project is to make the results as simple and communicable as possible, so that the conclusions feel easier and more actionable for System 1 and everyone is 'speaking the same language' as far as metrics go.
  • 244. Simplicity, and the focus on a few relevant measures, doesn't just match how people make decisions. It leads to faster and more actionable insights and quicker internal decision-making – as seen in Coca-Cola's response to the "Brazilian Spring" protests. It wasn't just important in such extreme situations, either. By focusing on a few relevant indicators that translated market reality in a powerful way, Coke was able to understand and maximise the use of different media across each campaign. For the first time, Coca-Cola Brazil was able to put together in one single analysis the contribution of its TV advertising, other traditional paid media, and more recent communication tools that are generally very difficult to evaluate. This analysis could encompass and measure the relative contribution of everything from out-of-home and social media to the contribution of their iconic red can. The analysis across four different integrated campaigns shed important light on the specific role of each touch point – like the emotional power of the iconic can and the surprise and excitement that can come from varying it. These roles can be planned depending on the communications and business objectives, and can also be optimized and tweaked to react to market movements during a campaign period. Babelfish Articles May 2014 – July 2014 20-7-14 Page 244 Conclusions In this paper we have tried to do two things. We have put forward the evidence for a new way of understanding people's relationships with brands – shifting from a memory-based vision of brand tracking to an emotional one. And we have offered a case study of Coca-Cola in Brazil, showing how a focus on emotions gave them a new way of assessing different media elements' contribution to their strategy, and also helped them move quickly to rebuild brand trust in a crisis not of their making. We would argue that emotional brand and campaign tracking has the ability to help any brand, since the System 1 roots of decision making don't only apply to FMCG decisions. Even more apparently complex decisions – like buying cars or choosing financial providers – are usually led by System 1 first, then post-rationalised by System 2. If anything, there is even more opportunity for fresh thinking in these categories, where the emotional dimension to decisions is less often considered. Meanwhile, the Coca-Cola example shows how understanding emotion in a broad sense can help build and drive the relationship people have with a brand. By looking at all the campaign elements through an emotional lens, and understanding the wider emotional and System 1 context to brand decisions, our approach proved to be a powerful one, helping Coke to navigate the complexities of the new media and competitive landscapes. Brazil is a fast-changing marketplace: emotional brand tracking helps a brand change fast too. As we move away from the Confederations Cup towards the World Cup, the knowledge Coca-Cola has gained about its brand's emotional resonance and how to influence it will help it negotiate the challenges of the event and build a behavioural platform for the future. About the Authors Gabriel Aleixo is Managing Director Latin America, BrainJuicer, Brazil. Flavio Marcondes is Knowledge & Insights Senior Manager, Coca-Cola, Brazil. Auto leads mobile optimisation 24 April 2014
  • 245. LONDON: More than half of the websites of leading brands across Europe have been optimised for mobile with the automotive category leading the way according to new research. The Internet Advertising Bureau (IAB) UK carried out a study in February across the top 100 advertisers in five EU countries – Italy, Spain, Germany, France and the UK – and found that 54% of sites were optimised for mobile. In the UK, the figure was higher, at 64%, and the IAB UK noted that this had increased by six points in six months, as its previous study in August 2013 had shown 58% of leading UK brands to have optimised sites. The study also broke out the automotive, technology, retail, finance, media and FMCG sectors for each country. Across the five nations surveyed, the average for mobile optimised sites in the automotive sector was 85%, but in the UK this rose to 100%. In contrast, the UK was lagging behind in the FMCG sector, where just 22% of sites were optimised for mobile compared to 55% in Germany, 44% in France, 41% in Spain and 27% in Italy. Alex Kozloff, IAB's Head of Mobile, welcomed the insight into how mobile was faring across Europe. "It's great to see that the UK has experienced a 10% increase in mobile optimisation since August last year and that sectors, such as automotive and retail, are now really making the most of mobile," he added. The UK also registered the highest score in the survey with regards to responsive design. Almost one quarter (24%) of the top 100 advertisers, such as Sky, Sainsbury's, Disney and Chanel, had a responsive site, more than double the figure of six months ago when a mere 11% had such sites. In the rest of Europe, Spain led the way with 15% of top brands having a responsive site, followed by France (13%), Italy (13%) and Germany (7%). At the recent Advertising Week Europe event in London, Tim Elkington, the IAB's Director of Research and Strategy, stressed the need for brands to have a mobile-optimised site, as even if consumers were not actually buying via a mobile device many would beresearching potential purchases on them. Babelfish Articles May 2014 – July 2014 20-7-14 Page 245 Data sourced from IAB UK; additional content by Warc staff Understanding how consumers buy: The four stages of the purchasing "loop" Matthew Carlton, Event Reports: Advertising Week Europe, April 2014 Summary This event report discusses the changing consumer path to purchase, describing it as a four-stage 'purchase loop', and looks at how this varies according to the type of purchase being considered. There are four phases in this purchase loop: passive, trigger, active and a post-purchase window. Brands which have a strong presence in the 'passive' phase, and are present at the correct moment in the 'trigger' phase will progress more quickly into the active phase, and have a greater likelihood of being purchased. Active stage behaviour varies according to the value of the product being considered, and the relevant touchpoints vary too. The impact of multiscreening and mobile devices on the purchase loop is also considered. Mobile devices are increasingly important in the passive phase, and for research during the active phase, but when making a purchase online, consumers still prefer to use a computer. Understanding how consumers buy: The four stages of the purchasing "loop"
  • 246. The Internet Advertising Bureau (IAB) and MEC both unveiled new research at Advertising Week to help marketers gain a clearer understanding of the ever evolving consumer purchase journey. Julie Hamshere, MEC's Group Research Consultant Director, introduced MEC Momentum, a proprietary approach to understanding and quantifying how consumers make purchase decisions today, offering brands enhanced strategic planning. She told delegates that the purchase pathway now is less of a funnel and more of a loop or a never ending cycle of using, needing, wanting, shopping and, finally, buying. MEC Momentum enables brands to understand this loop in even greater detail and was developed following an examination of the purchase decisions of over 100,000 consumers, across multiple categories and countries, using both qualitative and quantitative methods. Babelfish Articles May 2014 – July 2014 20-7-14 Page 246 Source: MEC The study reveals that there are four distinct stages within the loop. The first is a passive stage, which is where consumers may not think they are in market, but are forming a lot of assumptions about products and mentally shortlisting the brands we prefer. Then there's trigger, which feels like a hygiene factor when consumers know they want or need something and enter the market – but it's an important stage for brands as those that associate themselves with triggers in market enter the active stage earlier. The active stage is when consumers do all their research, creating a list of possible brands, checking in with people to find out their opinion, and then confirm by testing, seeing and touching the products to gain confidence as they come into purchase. After purchase there's a micro-stage called the post-purchase window when consumers re-research their acquisition and tell others about it. "Even when we're not in market we're forming opinions about brands" declared Richard Bradford, Strategy Director at MEC, as consumers encounter signals and touchpoints and develop feelings about all categories, even those that they might not be a purchaser in. The effect is that 42% of consumers have a strong idea which brand they will buy before they commence the buying process – something MEC have termed 'passive stage bias' – it's a measure of the momentum the brand has before consumers are triggered into the active stage. This passive stage bias varies considerably by category. While the average is 42%, it's as high as 59% in the tablet, soft drinks and current account markets, and as low as 29% for digital cameras, 25% for car insurance and 19% for utilities. Hamshere explained that it's not as simple as
  • 247. reflecting a high versus low interest category or a long versus short purchase cycle, but is a combination of three factors: "firstly, how distinctive the brands are within that category; secondly, how successful those brands are at actually turning that into a brand bias; and thirdly the degree of competition and how much consumers are willing to switch brands or to stay within a brand's portfolio." Consumers with a strong passive stage bias consider fewer brands, spend less time in the active stage, are less concerned with price when making their choice and are happier with their decision after purchase. Babelfish Articles May 2014 – July 2014 20-7-14 Page 247 Triggers are an opportunity for brands to gain (and lose) momentum Different categories have different triggers that bring consumers into market, but there's a commonality between categories as there are always functional triggers ("I ran out" etc) and, according to Bradford, 'underneath there's a longtail of battleground triggers'. These are particular needs or wants out of the category – for toothpaste it could be to purchase a whitening product or for mobile phones it may be the desire to own a better handset. And this creates a great opportunity for brands because associations between brands and particular triggers mean those brands enter the research phase before consumers have even started doing any real investigating. "People already have you in their mental shopping basket", said Bradford citing examples of brands with such established associations like Toyota with environmentally friendly cars, Garnier with tanning moisturisers and Samsung with the latest technology. The active stage sequence Through its research, MEC has identified a sequence to consumers' journeys in the active stage with three main sub-stages: scope out the category; have conversations with friends/colleagues and mention certain brands to ascertain their thoughts; and confirm through touchpoints such as the brand's website or in-store. During these stages, consumers will jump between on and offline. While it varies across categories, this was a detailed sequence shown to delegates for flat screen TVs in Germany: 1. Online search and reading reviews 2. Have a conversation with other people and notice TV advertising 3. Ask questions in online forums 4. Go to store for a look 5. Go to brand's website 6. Review and compare prices online 7. Become a friend/fan of the brand, read emails about promotions or reviews 8. Ask a shop assistant in store for help, buy Sticking with this category and market, Bradford displayed brand scores from the passive and active stages which create a momentum score. It made for interesting reading as a brand such as Sony has a strong passive score of 125 (narrowly behind leader Samsung) but a low active score of 72 generates a momentum score of 85, which leaves it trailing behind Samsung, LG, Philips, Panasonic and Toshiba. Marketers were warned that if their brands are not being useful early and allowing people to navigate their journey by injecting information into the points where they need it, they can fail to convert potential purchases.
  • 248. Hamshere then discussed how brands can leverage touchpoints to create momentum and energy and build a connection between a consumer and a brand, but stressed that they are 'very specific to either a brand or category'. To illustrate this point a comparison was made between flat screen TVs and soft drinks – with the former, seeing the product, online reviews and search engines were the most important toucpoints. In soft drinks a TV ad, product on store shelf and a special value offer were the leading touchpoints. Touchpoints in the passive and active stages can also be analysed with a comparison in the UK car insurance market shown to delegates. Interestingly paid for advertising dominated the passive stage, while earned and owned media touchpoints were ranked highly in the active stage. Babelfish Articles May 2014 – July 2014 20-7-14 Page 248 IAB Realview offers insight into multiscreening In a separate session, the IAB discussed its RealView piece of research that helps to demonstrate how people really use devices in this world of omniscreening. The research, part of which saw 20 consumers wearing lapse fisheye cameras to accurately record their behaviour, showed how multiple devices have disrupted the traditional purchase funnel. It found that consumers see their phones as an extension of themselves, placing a reliance on them as they are fully ingrained in their lives. 56% claimed their smartphone helps with everyday tasks, while a third described it as 'a lifesaver'. Downtime has become screen time, with 52% admitting they use their phone rather than sit and think, and 44% claiming it makes journeys more enjoyable. The trend of multiscreening is not new and has been well documented, but the study confirmed its widespread adoption with two thirds of respondents regularly using another device when watching TV. However, multiscreening is not just confined to 'TV plus another device', but connected device multiscreening is becoming prevalent, for example using a smartphone and a laptop simultaneously. Two thirds use another device with TV Q. And when you are watching TV do you often use any of the following devices in addition?
  • 249. Babelfish Articles May 2014 – July 2014 20-7-14 Page 249 Base: Total respondents – 1,376 Source: IAB This has a massive bearing on the purchase journey, particularly given the statistic to emerge from the study that 78% of recent purchases involved a connected device, either 'in the purchase itself, the research phase, or they'd seen an ad or been triggered through social media to think about making a purchase' said Tim Elkington, the IAB's Director of Research and Strategy. Looking at the different phases of the customer journey, the research found that the way different devices were used altered depending on the phase of the journey. Smartphones, tablets, laptops and desktops are all used at similar levels in the trigger stage and this usage rises across all devices in the research stage. However when it comes to completing the actual purchase, to a large extent people still rely on desktops and laptops, mainly because of the functionality around entering personal and credit card details with a keyboard. Category value plays a big role in device usage, with 64% using a device in the purchase journey for a low value item (such as DVDs or groceries), 86% for medium value goods (like clothes and jewellery) and 94% for a high value good or service (a holiday or a fridge freezer for example). Interestingly this usage was consistent across all demographics in the study, so similar patterns emerged from young people, those aged 55+, parents, females and ABC1s, illustrating that value of category is the major factor regarding device usage during the purchase journey. Mobile demands a different mindset Elkington compared marketing to someone on their mobile as bearing similarity to taking someone on a first date: "You've got to tread lightly, you can't ask for too much information or be too forward – you have to build up that level of trust together" he advised. This is proven via the research, with statistics showing that consumers are much happier to receive promotional communications from brands after they've made a purchase from them, but are particularly unhappy to receive messages from them beforehand. He concluded by offering advice for brands, encouraging them not to feel intimidated by omniscreening but to see it as an opportunity as people want to be online consuming content and brands have a right to provide that content. Be discoverable and have a mobile optimised site was urged, because even if goods are not purchased by a mobile device, they will be researched on this format by many consumers. Elkington encouraged brands to understand their category, as this determines how consumers behave with their devices and finally he reminded delegates to respect the personal nature of a smartphone and apply a different mindset when using it as a marketing tool. About the author Matthew Carlton is a freelance writer and marketing insights consultant based in London. He has written for a number of industry magazines and websites, and was previously head of marcoms insight at Ebiquity. Ford extends its consumer insights 22 April 2014 NEW YORK: Ford, the automaker, is leveraging digital insights covering sectors from fast food to electronics as it seeks to better understand the developing consumer path to purchase.
  • 250. Will Neafsey, Ford's global consumer analytics and tracking manager, told delegates at the Advertising Research Foundation's 2014 Re:Think Conference about analysis it had conducted with Luth Research. This study gathered insights regarding the automotive category, and equivalent material concerning how people researched and bought smartphones and pizzas – thus placing the findings into a deeper comparative context. Based on data from 2,000 respondents relating to their perceptions and media consumption, the firm was able to ascertain the ways in which overall habits are evolving – and the specific shifts impacting the auto segment. "The purchase of a vehicle is an extremely complex thing for most people," Neafsey said. (For more, including takeaways for brands and researchers from the study, read Warc's exclusive report: Ford draws insights from pizzas and smartphones.) "What this is giving us a chance to do is actually look at that and try to understand that last ten yards of what happens between when I do all my rational research and then how I'm finally going a home with a new vehicle." Indeed, focusing on the closing stages of the funnel – when consumers are turning into buyers – was especially important, as channels such as social media continue to transform established patterns of behaviour. "We said, 'Look, at the last minute, there's a lot going on.' We need to understand what's going on at that point and what are they looking at," Neafsey said. "Good diagnostics are starting to get to the dissection of what people are looking at." Developing a fuller picture of the digitally-empowered audience also counters perceptions of "Ford as a bit of a rustbelt company that's always kind of looking in the past," he added. Babelfish Articles May 2014 – July 2014 20-7-14 Page 250 "The reality is we're always trying to move forward." Data sourced from Warc Ford draws insights from pizzas and smartphones Geoffrey Precourt, Event Reports: ARF Re:Think, March 2014 Summary This event report looks at how Ford, the automaker, and Luth Research, the insights provider, aimed to understand changing consumer habits by analysing how shoppers bought not only cars, but also electronics (in the form of smartphones) and fast food (by looking at ordering pizza). Adopting such an approach meant the companies could gain an insight into the broad shifts in online behaviour taking place, and then put those learnings relevant to Ford into a wider context. Among the key takeaways for the company were that digital channels are especially important in the last "ten yards" before purchase, when there is a huge amount of activity to monitor. Ford draws insights from pizzas and smartphones In a marketing ecosystem where the rules of engagement are uncertain, what better way to discover insights about automotive sales than to compare mobile phones and fast food?
  • 251. So reasoned San Diego-based Luth Research on an insights-discovery mission undertaken for Ford Motor Co. At the Advertising Research Foundation's 2014 Re:Think conference in New York City, Dennis Gonier, a digital strategist at Luth, described the circumstances leading to this new twist on the apples-and-oranges comparison: digital data is more ominous. It's threatening. It's intimidating. And no one is sure what it's going to mean for the science, or the industry, of marketing. "In reality, the truth is it's our job. We are the ones behind the curtain, turning the dials, figuring out the methodologies [and] the tuning of metrics. And, usually, this type of stuff begins with pilot tasks." Or, as a Luth Research team wrote in a recent paper that carried the same title as Gonier's ARF presentation ("In the Driver's Seat: Embracing Big Data to Understand the Path to Purchase"): "The era of Big Data has called into question the value and efficacy of the bread and butter of traditional market research, household surveys. Why trust an increasingly difficult process to identify target households and rely on self-reported responses to quantitative questions when you have access to actual transactional data? "The answer is practical: most researchers do not have access to 'Big Data' and even if they had some access, they quickly find it is hard to generalize from Big Data and even more difficult to project to all households and markets." For Ford, Luth didn't just want to probe the habits of car shoppers. Instead, by probing interactive paths to purchase from a variety of perspectives, it hoped to discover more about a new kind of consumer and, in turn, the process that leads to the showroom floor. To that end, Gonier explained, "We've conducted close to 2,000 interviews, dove into perceptions and media consumption habits, [as well as] intentions to purchase across automotive, pizza and smartphones." "What we first had to do was understand all the normal research that we had done - traditional research surveys, things like that," added Will Neafsey, Ford's global consumer analytics and tracking manager. "It tells us what people are looking at when they're looking at ads, when they're looking at TV, when they're looking at print. They look at about the same amount all through the purchase process." One finding was completely predictable. According to Gonier, "No one goes to a website to check out a pizza. What they do is they take a poll at home and choose a pizza." But for more sophisticated purchases, the use of digital - in particular, social media - offered some genuine revelations about shoppers: "What was interesting to us was when we started looking at Babelfish Articles May 2014 – July 2014 20-7-14 Page 251
  • 252. the digital part," Neafsey told the ARF assembly. "We said, 'Look, at the last minute, there's a lot going on.' We need to understand what's going on at that point and what are they looking at." For instance, word-of-mouth influence seemed to be a powerful purchase driver when Luth asked consumers how much they relied on the advice of family and friends upon setting out to purchase a mobile phone, a pizza or a car. "Early on," Gonier told the ARF delegates, "it mattered and then it sort of waned. But, when we look at their behavior in visiting review websites, we found, for automotive, a surge as you got close to the purchase." Moreover, as the shopper came closer to morphing into the buyer, the influence of traditional media remained constant, but there was a significant uptick in website reliance. Babelfish Articles May 2014 – July 2014 20-7-14 Page 252
  • 253. For smartphone shoppers, Luth found, the device itself was not as important as the network provider and the local service provider - a finding supported by digital media usage. But, in the automotive category, manufacturer sites and online reviews were more heavily trafficked than the local dealers' digital presence, where activity declined as interest in the brand site rose. "What we found is that visits to social media brand sites in the automotive category went up as you got closer, but the dealer role really never [moved] the meter." Neafsey countered the perception of "Ford as a bit of a rustbelt company that's always kind of looking to the past. The reality is: we're always trying to move forward. The purchase of a vehicle is an extremely complex thing for most people … What this is giving us a chance to do is actually look at that and try to understand that last ten yards of what happens between when I do all my rational research and then how I'm finally going a home with a new vehicle." The Ford analyst also spoke of another disconnect between what shoppers told researchers and what digital media revealed they actually did. "We're now able to dig back in and say, 'Okay. Who are these people and what's going on?' We look at people who are looking at other brands - Hyundai, Toyota - and we realize they're stopping at us." Babelfish Articles May 2014 – July 2014 20-7-14 Page 253
  • 254. The findings, he informed the 1,500-plus ARF delegates, "are the opportunity for us to start finally digging in and saying, 'What's going on there? Are we the last guy you'd date before you marry somebody different? Or is this something that's much more positive?' "Good diagnostics are starting to get to the dissection of what people are looking at. That's the kind of thing that we're going to learn going forward with this kind of data. Babelfish Articles May 2014 – July 2014 20-7-14 Page 254 "The three big takeaways for us: • "Understanding that digital has become a very big part of that last ten yards. • "Understanding that there's a lot going on there. [Consumers] are looking at a lot of different things. We need to understand every single one of those. • "Understanding that we now have a mechanism to really dig in and understand who these people are and what [these insights] mean to our business." The analysis conducted by Luth Research offered Ford further new insights on the role digital plays, including in branding, where the heritage of the product seems to overpower the manufacturer's online information at every stage of the purchase process. For the kind of functional information that interactive shoppers most wanted, "vehicle specifications" were consistently the top priority, with "automotive reviews and discussions" strong drivers early and late in the process, too.
  • 255. In terms of pricing, the price/value balance rules, especially at the final stage of the automotive buying cycle, where it was found to have twice the importance of both pricing and incentives. Babelfish Articles May 2014 – July 2014 20-7-14 Page 255 Gonier's takeaways from the Ford/pizza/mobile study for brands: • Maximize digital in driving purchase intent - digital is a clear indicator of intent. • Target based on purchase stage - different stages may demand different content. • Capture brand interest among non-intenders - shopping behaviors vary by brand intent. The Luth Research's companion lessons for researchers: • Integrating attitudes with behavioral data is actionable. • Understand the differences between what people say and what people do. Mobile users 'open' to sponsored data 21 April 2014 SANTA CLARA, CA: The majority of American mobile subscribers, especially younger users, have concerns about exceeding their monthly data limits, but they would engage more often with content providers if they were offered sponsored data plans, a new study has revealed. Based on a survey of 1,000 US smartphone and tablet owners aged 18 and over, which was conducted in January by Wakefield Research on behalf of Citrix, the IT networking provider, the report found 82% of respondents feared the impact of mobile apps on their monthly data quota and avoided using an app as a result.
  • 256. Adults with children were more likely to exceed their monthly data limit, the report said, with 72% saying this happened to them compared to just 46% of childless adults, while 66% of iPhone subscribers expressed concern compared with 48% of Android smartphone users. Just over two-thirds (67%) of those who watch at least one mobile video a month said they exceeded their data limit, but this fell to 36% for those who watch less than that, the study also noted. However, US smart device users remain receptive to sponsored data plans and the majority said they would use more data if provided with the option. A full 78% of millennial respondents said they would be open to such plans compared to just over half (52%) of the baby boomer generation. Sponsored data allows subscribers to check new apps and features without deducting from their monthly data limits and can also be used for promotions and customer loyalty initiatives. In terms of content usage, the study found 39% of subscribers said they would access information about their bank accounts, 33% would watch educational videos, 28% said they would watch ads, 21% would use the data allowance to hold a teleconference while 18% would file an insurance claim. These tasks were more likely to be carried out by adults with children – 77% of parents said they would do so if data usage was sponsored compared with 58% of non-parents. "Sponsored data plans are likely to be a growing source of revenue for mobile operators," concluded Chris Koopmans, vp of service provider platforms at Citrix. "[They] are one way in which content providers can engage with their target audience." Babelfish Articles May 2014 – July 2014 20-7-14 Page 256 Data sourced from Citrix; additional content by Warc staff Telefonica, Blackstone Launch Axonix, A Mobile Ad Exchange Built On Defunct MobClix Tech Posted Apr 15, 2014 by Ingrid Lunden (@ingridlunden) Telefonica, the Spanish carrier with operations in 24 countries and 323 million customers, is making its latest bid to expand its business beyond basic mobile and telephone services, by moving into ad tech. It’s teaming up with Blackstone to launch Axonix, a real-time bidding mobile ad exchange that has been built on technology from MobClix, the defunct ad exchange whose assets were acquired by the private equity giant at the beginning of this year. Axonix, which will be based in London, is officially opening for business in May with its self-service mobile ad platform initially focused on the U.S., Latin American and European markets. MobClix, you might recall, was a fast-growing mobile ad company that had been acquired by mobile marketing firm Velti, apparently for over $50 million, back in 2010. Last year, when troubles started to hit Velti and it couldn’t make payments out to developers on the MobClix platform, and then reported huge losses of its own, Mobclix went into Chapter 7 bankruptcy protection and Velti filed for Chapter 11 protection. MobClix’s assets, along with the rest of Velti, were then picked up by GSO Capital Partners, the credit division of Blackstone, in January, for an undisclosed sum. (Part of Velti’s marketing assets are now in a new business, too, called mGage. “Affiliates of GSO Capital Partners LP, a division of Blackstone, purchased certain assets from Velti in January 2014
  • 257. and launched mGage using those assets,” a spokesperson says. “mGage is an independent company and completely separate from Velti.”) The wider transaction included up to $25 million in debtor-in-possession financing, including “a $10 million cash injection to support the operations included in the proposed sale.” Fast forward to today, and it looks like Telefonica and Blackstone see some value in MobClix’s technology under the right custodianship. Simon Birkenhead, Telefónica’s director of global advertising sales and previously an exec at Google, has been named CEO of Axonix. He will be taking on just one ex-employee from MobClix, Simon Bailey, who will become Axonix’s COO. In an interview with TechCrunch, Birkenhead would not disclose how much money Telefonica or Blackstone are putting into the new Axonix venture, except to say that it will be well funded for the next two years. “There is sufficient investment from Telefonica and Blackstone, and it’s sufficiently stable and funded for the next two years,” he says. There will be money for “generous” hiring packages to woo ambitious talent from other firms, as well as potential acquisitions. He says the firm does not expect to look for outside funding from VCs. Some of Axonix’s funding is likely to come from the $25 million debtor-in-possession funding originally put up by Blackstone for the bigger Velti asset acquisition. Part of the acquisition of the MobClix assets included integrations with some 100 demand-side partners, but no debts. Those old debts “still sit with Blackstone,” Birkenhead says. It will be up to Axonix’s sales team — which will initially be Telefonica’s sales network — to convince the industry that MobClix’s technology is now being run within a more credible business. “Our feeling was that MobClix had a great platform, one of the best on the market,” he says. “It was a great shame it went into bankruptcy through no fault of its own. Our intention is to take the tech but put it into a much more secure and stable company that we will be able to operate on a more sound financial footing for the next couple of years.” The move comes at an interesting time for Telefonica, which has long been trying to figure out the most lucrative place for itself in monetizing better around the growth of smartphones and broadband networks, through advertising and other initiatives. InSeptember 2011, the company channelled those efforts into one division that it named Telefonica Digital, complete with 2,500 employees and a host of different digital ambitions, including a Global Services unit (enterprise services), but the internet portal Terra, the internet-calling company Jajah (deadpooled), the “Spanish Facebook” Tuenti (still going), R&D operations, and many different mobile assets such as BlueVia (its app venture, also being wound down – see below) and its other, earlier mobile advertising initiatives. But earlier this year, Telefonica made the decision to shutter Telefonica Digital and re-integrate parts of that operation into the bigger organization. Telefonica Digital had put millions of investment into backing startups, incubating more, and launching other efforts like this integration with Pinterest, and the closure points to challenges for the carrier. (One casualty of that was BlueVia, the open API platform Telefonica launched to offer services like carrier billing on its network to developers. “The platform will continue to be maintained and supported but no new connections will be made. Instead we will work with all new partners to help them integrate through preferred aggregators,” a spokesperson says. “In terms of the decision to suspend new connections to BlueVia, this was Babelfish Articles May 2014 – July 2014 20-7-14 Page 257
  • 258. reached after a strategic review. It was a question of priorities. We took the decision to re-allocate the budget to product development in other areas within Telefonica.”) In short, it seems like Telefonica ran out of patience to see how some of its more ambitious “tech” ideas would eventually play out within a large and still-lumbering telco. Perhaps that’s part of the reason why it’s decided to develop Axonix as more of a standalone entity. Still, the potential is strong for Telefonica, which is why it has and will continue to keep chipping away at these ventures: ZenithOptimedia estimates that in 2013, $13.4 billion was spent on mobile ads, or 13% of all Internet ad spend; and it forecasts that by 2016 mobile ad spend will grow to $45 billion, or 28% of Internet ad spend. It will compete against the likes of MoPub (now owned by Twitter), and Amobee (owned by SingTel). In the UK market, eMarketer projects that mobile ad spend will reach $3.53 billion (£2.26 billion) compared to $1.86 billion in 2013, equivalent to 15.1% of total media spend. Overall, it says the digital ad market is still dominated by Google and Facebook, just as it is in other big, Western markets like the U.S. Google will be just under 41% of all digital ad revenues in the UK in 2014. So who will be the customers on Axonix? Unsurprisingly, Telefonica will among them. The company currently uses DoubleClick for ads on its Terra broadband network, and has a “longstanding relationship” with Amobee for its mobile business. “It’s fair to say we will be evaluating the tech partners that Telefonica has, and seeing where it makes sense to use Axonix,” Birkenhead says. “Amobee is up for renewal this year, and so it’s an opportune time to look at this.” But similarly, other potential customers could include partners of Telefonica’s, such as Firefox OS and Sprint. “Telefonica has an existing partnership with Sprint announced last year for mobile advertising,” Birkenhead notes. “Sprint has a mobile ad business and uses its consumer data to enrich targeting, but it doesn’t have an in-house platform, so we will be engaging in discussions to see how it could use Axonix. It will be natural to engage with others like Firefox OS and Mozilla, where TEF already has a relationship where they don’t have in house technology.” That potential funnel, he says, also includes all operators “besides Singtel.” Babelfish Articles May 2014 – July 2014 20-7-14 Page 258 Photo: Flickr How Big Advertisers Are Using Next-Gen Messaging Apps Snapchat, Kik, Tango, Line and WeChat IPG Media Labs Offers Tips For Marketers Aiming to Cash In On Mobile Messaging By Mark Bergen. Published on April 15, 2014. "What in the world is WhatsApp?" Reuters echoed the question many in the U.S. were asking when Facebook acquired the mobile messaging app in February for a stratospheric $19 billion. WhatsApp was more familiar to the rest of the world, where it had built a bulk of its estimated 450 million users -- and where other competitors were gaining steam. Each began as "over-the-top" applications to avoid texting charges, but they've quickly blossomed into vibrant social media portals that are robbing users from Facebook and Twitter. WhatsApp, the largest of the apps, appears to be sticking to its committment to avoid ads. Yet five of its sizable competitors have opened up to marketers. They're all unproven. And overall, the
  • 259. apps collect far less data than social networking sites. "Some of them actually pride themselves in not collecting it," said Etyan Oren, director of partnerships at IPG Media Lab. Despite their hurdles, the apps have growing and tantalizing user numbers that are drawing brands to experiment with the evolving platforms. Today, IPG is out with a new report detailing the best practices for brand marketers on the platforms. Here's how some of the world's largest ad spenders are tip-toeing into the mobile messaging waters: Babelfish Articles May 2014 – July 2014 20-7-14 Page 259 Snapchat On Monday, Taco Bell, an early Snapchat adapter, announced it would premiere its newest taco on the popular ephemeral app with a short movie, a first for Snapchat. By letting companies create pages as regular users, Snapchat allows brands toy around with its playful format. McDonald's recently leapt in with superstar LeBron James. But IPG cautions that the app offers "no analytics beyond seeing the number of followers." Kik The three-and-a-half year old service, out of Canada, is less well-known, but IPG is a big believer in its potential. Its user base, roughly 125 million, skews young. Unlike other apps, it is built in HTML5, which allows chatting and sharing to stay inside its own browser. So Kik is positioning itself as a competitor to other chat apps, as well as Google Chrome and Firefox. Brands, the IPG report says, "are already on Kik" -- their web content is readily available. IPG launched a campaign with Kik and Syco/Columbia Records to bring fans of the boy band One Direction onto the app. In its first three months, the effort netted 956,800 installs and over 2.4 million visits to a Kik chat room with the band.
  • 260. Babelfish Articles May 2014 – July 2014 20-7-14 Page 260 Tango In December, Twitter's mobile ad network MoPub unveiled an in-stream native ad product to run with Tango, the U.S. app with some 200 million users. Supercell, makers of the mobile video game Clash of Clans, and Dunkin' Donuts have bought space for app-install ads inside Tango. IPG calls it the "blingiest" of the apps, with lively animated stickers gracing the screen. But unlike Kik and Snapchat, which require intensive de