Mindshare Ireland - Future of 2014

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Welcome to the Future of 2014 – our annual booklet of thought pieces of what to expect from the year ahead, written by the Mindshare Ireland team. …

Welcome to the Future of 2014 – our annual booklet of thought pieces of what to expect from the year ahead, written by the Mindshare Ireland team.

The theme of the articles is all about being adaptive. In the fast moving world of media that we find ourselves in today, we need to be adaptive in how and when we communicate to consumers. The Future of 2014 book will give you the necessary information you need to start you on the adaptive journey.

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  • 1. MINDSHARE FUTURE OF ... 2014 A LOOK FORWARD TO THE MEDIA LANDSCAPE IN 2014
  • 2. INSIDE THE FUTURE OF ... 2014 3 Q&A WITH BILL KINLAY, CEO 6 TRADING INTO THE RECOVERY 4 8 9 10 12 14 MEDIA DAYS LIKE THESE BEING ADAPTIVE ADAPTING FOR 2014 – Q&A NORM JOHNSON SOCIAL MEDIA MAKING ITS MARK IN 2014 THE RESEARCH STARTING POINT FUTURE PROOFING RADIO IN 2014 15 MOBILE: THE LESSER TAPPED MEDIUM 20 THINKING DIGITAL 16 22 WHAT HAPPENS IN A DAY? MAKING NEWS PAY - PRINT OR DIGITAL? 24 USE YOUR DATA TO SEE THE WOOD FOR THE TREES 28 EXTENDING TV REACH WITH VOD 26 30 32 DIGITIZING OUT OF HOME ADAPTING DIGITAL TO DRIVE RESPONSE THE INTERNET OF THINGS (TO COME)
  • 3. BILL KINLAY CEO, Q&A Q. What are the main things to watch out for in 2014? We work in a very fast moving dynamic and ever changing marketplace and this pace of change will undoubtedly continue. The main task for our company is to remain flexible and to embrace the changes as they come. Some are predictable, some are not. Having said that there are a number of clear areas that will continue to increase in importance throughout 2014 and for which we need to prepare. Business Intelligence – clients require a different level of strategic advice from their media partner and it’s important for us to be more of a business partner and offer much deeper and wider advice than we have done so to date. Q. What are the greatest business challenges that clients are facing in 2014? It’s an extremely competitive environment out there and clients are under severe pressure just to maintain market share. There are many challenges that they face but in my experience the top three are: · Understanding customers and maintaining loyalty – this is the main issue facing clients and forms the bedrock of what all business attempts to master. With our dedicated Business Planning and Intelligence teams we are in the ideal position to help clients address this fundamental challenge. · Uncertainty in the economy/pressure on value – although there are undoubtedly some green shoots, the Irish economy remains challenging and competitive. Most clients have strong international pressures to deal with alongside local ones. Mindshare can certainly help in driving value both in terms of the strategic planning, but also through the market beating media value and intelligent GroupM investment offering. · Properly understanding return on investment – due to patchy data and the high cost involved, relatively few clients have invested the time and money necessary to build a robust sales model to accurately measure and predict return on investment. Mindshare can offer advice and expertise across the whole area of performance building affordable and effective models that have a strong track record in transforming businesses. Better ROI measurement – big data and econometrics will increase in importance and will become a necessary and expected part of our industry offering. Mobile – the challenge of mobile is nothing new, we addressed similar issues in 2000 when we needed to adapt for display media. But this time the pace of consumer adoption is incredible and we as an industry need to move faster to meet that.   “The main task for our company is to remain flexible and to embrace the changes as they come” 3
  • 4. MEDIA DAYS LIKE THESE Emma O’Doherty Today as I’m writing this article, international and global media outlets are all telling us the same powerful story – news headlines and front pages are awash with images and reviews of the life of Nelson Mandela; social media is filled with commentary, personal expressions and of course, the odd cynic. It’s the same story in all, but different, it has been adapted to suit the channel and its audience. Days like these demonstrate the ability of the media to adapt their stories and content as the world around them changes. Days like these stand out as they challenge us to choose those media outlets whose ‘take’ on the exact same story best captures our attention, our point of view and importantly, our hearts. And isn’t that what our shops are filled with – the same products, but with their own unique formula? Isn’t that what advertising is filled with – those same products all trying to tell their own stories? But how can those stories capture our attention, our hearts and our cash? 4
  • 5. “(Change is) the only evidence of life” Evelyn Waugh, Brideshead Revisited We’ll take the lead from consumers; they are in charge after all, choosing when, where and how they engage with content – from TV programmes, to news, to music and of course, advertising. Digital technology has become the great enabler, breathing life into all media – for both consumers and advertisers – you’ll read about some of these developments throughout this book. There are growing numbers of case studies revealing the power of other media in driving digital performance (e.g. TV impacting search volumes) or digital enhancing the story other media can deliver (e.g. the growth of Shazamable TV ads). I heard a brand manager recently say that they are now “potentially just 140 characters away from disaster!” It’s a scary and exhausting thought. Know your audience, know your brand story and take it from there. But be adaptive. We can all become better at using the data in our arsenals to keep communications plans and content responsive to consumers and to business needs. A key focus for Mindshare in 2014, and the theme to this year’s Future Of, is enabling clients to be more adaptive, combining our data for better business planning. Days like these are never the same. We all have to keep changing, we think you’ll see and read evidence of this in thoughts from our staff for 2014. P.S. one of the most powerful advertising stories I’ve heard this year is the case Les Binet and Peter Field have outlined for the effectiveness of long and short-term advertising (The Long & Short of It, IPA, 2013). It’s comprehensive in its make-up – 30 years, 700 brands and 996 campaigns. If you, or someone else in your organisation, is yet to be convinced of advertising’s contribution to long-term business success then I’d suggest you give this a go. Happy reading! 5
  • 6. TRADING INTO THE RECOVERY Neil Johnston We might as well start with the prediction that everyone is looking for: Advertising revenue is going to grow in 2014 in Ireland. Ah, you want to know by how much? We think 2% or 3%. Digital will continue to outperform the general market, with video driving the growth, up by 15%. Next up is TV with 4% growth, followed by Out of Home, Radio and Print. So if the revenue falls are over, what does that mean for how the market is to be traded? Since 2008 advertiser demand has halved, whilst with the growth of the Online medium, consumers now spend a similar amount of time online (13.5 hrs) as they do watching TV (15.4hrs) (Source: IAB Mediascope). This growth in media consumption has largely benefitted non-Irish media owners such as BSkyB in TV and Facebook, Twitter etc. in Online. Advertising money has followed consumers, consequently, the halving of advertiser demand has affected Irish media owners even more than the headline halving of revenue suggests. Beneath the headline revenue drop, Irish media owners have also seen their share of advertising revenues drop as money has moved to non-Irish media owners. Source: Colourbox.com 6 “Advertising revenue is going to grow by 2%-3% in 2014”
  • 7. Unfortunately, during this media recession, certain media owners have not responded to the tumultuous business environment by revolutionising the structure of their ad-sales businesses in order to make them more commercially fit for purpose. Lots of local based sellers have “old” and “new” media in silos (often in different buildings).  Mindshare media buyers are multi-media. This allows our traders to deliver on adaptive plans and react to real time movements that affect our media buys, be that sales data, the weather or social media. The Mindshare Exchange team react across all media. Multimedia trading is about extracting value; buying more of what media owners have to sell (if we want to) will mean that we drive more value for clients, whilst also having a more holistic approach to that media owners’ audience and delivery. It means that our buyers are more joined up with the planning process, thinking about the whole audience and not just bits of it. If our media owner partners have a valuable audience, we’ll buy more of it at the right price. A few rays of sunshine on the 2014 media horizon will encourage some media owners to try to raise their price. Whilst media has decent prospects in 2014 the general business environment is still tough. Irish consumers looking for every day value means that retailers are largely competing on price. This then has consequences, particularly for FMCG companies and the margins of their Irish businesses. Hence, Mindshare will strongly resist media price rises on behalf of our clients. So in summary, 2014 starts to see an Irish media recovery, but media owners with old-fashioned structures or who try to raise their prices better beware. “Multimedia trading is about extracting value” 7
  • 8. BEING ADAPTIVE Aoife Dunlevy & Paul Enright Adaptive marketing is about brands getting closer to consumers via media, particularly digital media. We can leverage the data those relationships and media generate to rapidly adapt marketing activity to make it more competitive, more relevant and crucially, more profitable. We are already beginning to see the first signs of this with Sky’s trial of Adsmart. It allows advertisers to tailor TV ads to specific households based on age, gender, estimated income and where they live. It turns your Sky box into your own individual ad server! For example, a car brand would serve a people carrier ad to a family, but a sporty model to a younger customer without children. How does adaptive marketing affect media? In Mindshare Ireland we have invested in making our agency adaptive. Our data team work with clients to find ways to create better business intelligence from multiple data sources. Our cross media implementation team can pull learnings from one media and apply it to another so that we constantly push for better and more profitable campaigns. We are in an age where consumers expect more from marketing, they don’t want one size fits all, instead they are responding best to campaigns which are tailored personally to them. Adaptive marketing can deliver this; campaigns which combine data from multiple sources to find new opportunities, and which constantly learn from consumer responses to become ever more specific. In many ways Irish media is already adaptive, television campaigns are optimised daily based on overnight ratings from Nielsen and digital media is continually monitored and adapted accordingly. Our media buying ethos has already shifted to an audience model. Direct response campaigns are a good example of adaptive marketing with multiple data sources used to constantly refine the audience and drive better return on investment. As media platforms evolve, the proliferation of available data will open up even more ways to make media adaptive. 8 Kleenex adapts for the flu season! The Kleenex team in Mindshare London fused flu data from both Google and the NHS to geo-locate UK flu outbreaks in real time last winter. Once they knew where the flu bug was about to hit, they were then able to evolve the media plan with activity and investment shifted to those locations. The logic was that demand would be higher in affected areas and by focusing on these locations rather than a traditional nationally targeted campaign, Kleenex could maximise return on investment. The campaign was a phenomenal success with sales up 40% YOY, and went on to win Gold at Cannes Lions 2013.
  • 9. ADAPTING FOR 2014 with Norm Johnson Norm is the Chief Digital Ocer for Mindshare Worldwide Q. You’ve recommended that brands need to revisit the established consumer journey model - what do you believe will be the major challenge for brands seeking to do this in 2014? Mobile will continue to be the key driver in changing the consumer journey. Whether second-screen usage or instant price comparisons, more people than ever will use their mobile to accelerate through the consumer journey. Showrooming is the most recent twist on the ever-evolving journey. Consumers now research in the store only to buy at a competitive price online. So we’ve gone from research online, purchase offline to research offline, purchase online – often on your mobile phone in the physical store itself. Q. The move from the traditional media plan to marketing rules may feel like an uncomfortable shift for some marketers – does this actually mean that investment may become less transparent as it moves and adapts? brand safety, to determine what type of media sites can be associated with their brand. It’s a bit like paid search. Most brands will not scrutinize every keyword purchased, but they will want some rules that govern the types of keywords that can be considered. Q. Adaptive marketing feels like a particularly digital friendly concept – do you believe it can be equally well executed in traditional channels? Digital accelerates adaptability, but also can be used to help adapt offline. For example, we can correlate search and social activity with TV advertising, and then adapt that TV plan based to up-weight those programs that are generated greater consumer engagement through Google and Facebook. Even with up-fronts there is the opportunity to adapt the TV ad creative messaging based on online data such as buzz monitoring or social shares that can provide some insight into what messaging and creative is resonating with audiences. Media will remain transparent in the sense that everyone will know the rules, but it may become less disclosed in the sense that advertising may be more focused on audiences and results rather than specific media inventory. However, even within this new type of buying, brands will need to develop rules, particularly around 9
  • 10. SOCIAL MEDIA MAKING ITS MARK IN 2014 Maeve O’Gorman & Aideen Murphy 2014 will hopefully be the year that social media grows up. At this point it is an essential part of the marketing mix, but many brands are still confused about the role it plays for their business. So what are some of the major opportunities for 2014? Photocommunication The days of text based social updates are past. The growth of platforms like Instagram mean that brands need to focus on minimising copy and maximising visual assets. Photocommunication has been driven by the development of camera features on mobile phones. Consumers use image sharing apps daily; from Snapchat with self-deleting photos to Life Crumbs, a photo diary. It’s estimated that 10% of all photos ever taken were taken in the last 12 months! For 2014 the implications are clear; say it with pictures not words. “Forget conversation calendars, build content strategies.” 10 Micro video Until now video content on social media was generally long-form, but costs made this prohibitive for most brands. The consumer trend of making quick videos on Vine and Instagram is very much welcomed. The opportunity this offers brands is to create on-the-go shoots and produce snippets of video content, without the expense of formal production. These short video clips will work nicely in the new Facebook auto-play for video feature. Social is Mobile While advertisers have struggled with the challenges of effectively investing in mobile, social media is ready because the channel is already inherently mobile. Around 80% of Twitter’s traffic in Ireland is mobile and in any given month 77% of Facebook users will access it via mobile. Therefore any content published on these networks is more likely to be seen on a mobile device than desktop. For advertisers this presents one of the easiest entry points to mobile, with all of the rich targeting options that are unique to social media.
  • 11. Social ads Internal social metrics (likes etc.) are still important, but there are new opportunities to use social ads for a different return on investment. One new option is to use Facebook’s Custom Audiences to target people on Facebook based on previous interaction with your brand - an incomplete purchase or a mobile app they haven’t used recently. Twitter’s big move is to target TV spends; their Twitter and TV tool has just launched in Ireland. Brands can expect to see more budgets going into social media ads in 2014 but spent differently than before. Don’t dismiss Google There is a certain déjà vu to talk about Google as an upcoming social trend but 2014 may be the year when it finally plays a serious role. Google itself has evolved; from a functional search engine that links to websites, to an online curator which guesses what consumers are seeking and suggests content. This shift towards semantics means that SEO strategy will move away from keyword tagging and towards regular updates of long-form content and linked to Google+. Advertisers will need to update their Google+ profiles more regularly and ensure their key influencers have proper Google Authorship. This won’t mean a major increase of resource going into Google+ management, but more attention will be needed. Forget conversation calendars, build content strategies In summary the evolution of the image and video options, combined with the growth of native ads will mean 2014 is the year of content. Building content strategies requires long-term planning and investment in assets. But for brands who develop content strategies, social media will finally take its place as an integrated and valued part of their communications planning. SOCIAL CONSUMER TRENDS FOR 2014 Collaboration powered by social media goes mainstream. From Airbnb room rentals, now spreading to sharing cars and even dinners in homes. Humour bombing is rife, with memes developing as soon as a story breaks. Being the first to share the joke endows social credibility. Social cliques; Social networks are personified by the types of people who use them; I Pin because I am creative. Innovation by consumers; through crowdsourcing consumers are directly investing in products and services. 11
  • 12. THE RESEARCH STARTING POINT Mark Kelly, Ollie Smith and Peter Flanagan E-commerce and Online Retail is a category with huge potential to grow in Ireland. Here, we outline some of the most important developments in search marketing that can help the category achieve its undoubted potential. Mobile Opportunity 79% of Irish adults now have a portable online device, and up to 4 in 10 searches are conducted on mobile. This represents a significant opportunity for online retailers. Using paid ads on Mobile search is an excellent way to generate business. You can easily adapt your advertising message depending on the user’s search query, location and time of day. We have moved beyond just tracking clicks, and now have the capability of tracking the consumer journey right through to the point of purchase. Source@ Google analytics 2013 12
  • 13. Dynamic ads help to scale search Product listing ads for Ireland? Keeping paid search advertising up to date with an e-commerce site’s changing products and offerings can be a real challenge. This often results in a website’s merchandise being poorly represented by paid search campaigns. By Q2 2014 retailers may have the opportunity to have highly targeted rich display ads on the search engine results page. Advertisers can share their product lists, images, and prices with Google by creating a Google Shopping account. Google can then display these details in a grid as sponsored listings, or even as part of an individual PPC ad. If launched in Ireland e-commerce retailers will need to stay on top of their game to take advantage of it. Google’s Dynamic Search Ads were introduced in 2013, and allow retailers to automatically show consumers paid search ads based on the website’s content. Google Adwords will automatically generate the ad headline and site landing page, based on a search query, without the need to add keywords. Expect to see more online retailers build their list of advertised products with the assistance of Dynamic search campaigns in 2014. “Search engines have embedded themselves as the first point of research before a purchase.” Mobile voice search Keep an eye out for developments in voice activated search. It allows users to query products, model names or numbers by speaking into their mobile device, minimising spelling errors from fat fingers. Expect to see more search terms starting with “where is the cheapest, what is the, and how much is…”, as searches become more like questions. Search engines have embedded themselves as the first point of research before a purchase, whether the sale is completed online or offline. The developments above help e-commerce sites address many of the challenges they face, and should help search marketers realise its full potential. 13
  • 14. FUTURE PROOFING RADIO IN 2014 Conor White 2013 proved a challenging year for the radio market once more. While 2014 appears to be more optimistic, Irish commercial radio needs to create new opportunities for selling its product. It is no longer enough to simply talk about your radio show or personality, but rather the station brand and franchise and delivering the radio content to the consumer in whatever platform they desire. There are some key considerations to look at for 2014: Maximising Social Media opportunities Radio has always been a two-way medium where the listeners interact with the show and have a voice, no more so than now with the developing strength of social media in the industry. This social interaction is what makes radio stand out from other music offerings such as iTunes or Spotify. It is vital that commercial stations develop a very strong social network that reflects their traditional listeners. A strong mobile offering With 66% of radio listeners having access to radio through their mobile*, it is becoming more and more important to offer a commercially friendly app and most importantly a free app. The key to radio’s continued success is to develop into a multimedia platform. (*Source: Ipsos MRBI (JNLR survey) 14 Always on radio Some great strides have been made over the last couple of years, with the introduction of the Radio players, as well as a significant increase in podcast downloads. Content is king, and while radio is traditionally an immediate media, the opportunity to evolve into a multimedia platform and offer archive content at any time opens the possibility of target marketing for clients. While 2014 will offer a number of new challenges to the radio industry new opportunities such as digital partnerships could open radio content to a new audience. With Spotify now in the Irish market it is a great opportunity to work alongside radio groups to share archives or even run live simulcasts. 2014 will be the a year of transformation in radio and will offer some exciting new commercial opportunities. “The key to radio’s continued success is to develop into a multimedia platform”
  • 15. MOBILE: THE LESSER TAPPED MEDIUM Keith Wallace Mobile is fast becoming our go to device for internet browsing, 20% of all global internet traffic is accessed via mobile* and we expect this to continue to rise in the coming years. So what are the biggest challenges/opportunities for mobile advertising in 2014? Don’t shut the door It may sound obvious but at present not all brands have a mobile optimised site. Consumers expect a mobile friendly user experience, with 37% saying they would immediately exit a website if it was not mobile optimised (O2 media Christmas survey Oct 2013). Brands that have not optimised for mobile are effectively closing their shop door to more than 1 in 3 potential customers. Quicker consideration According to Microsoft, 70% of all PC based search tasks are completed within one week, 70% of mobile search tasks are completed within one hour. So for a brand hoping to do business via mobile, they have an incredibly short window to work with and anything they can do to shorten the consumer journey to sale is extremely important. Building search campaigns with deep links directly to the consumer’s goal is a massive opportunity for brands  (*Source: Statcounter Aug 2013) What’s in it for me? Mobiles are intensely personal devices, to encourage engagement brands must offer value to consumers In store - 55% of Irish consumers use their mobiles to showroom** when in store (O2 media Christmas survey Oct 2013). This is a huge opportunity for brands such as FMCG brands to create awareness of new products, offer coupons or perhaps supply new recipes with the aim of getting their brand into the shopping basket. On the go - If done correctly location based advertising can dramatically increase footfall in store. Finding out that Joes Café down the road is doing half price coffee may just entice you to swing by. At home - The rise in second screening allows brands to target (real time) ads to consumers while they watch bespoke TV programmes. Brands that provide interesting and relevant content that enhances the consumer experience may encourage brand affinity. With the rise of 4G, mobile devices are going to become even more powerful, advertising opportunities more prominent and the potential to increase both profit and brand loyalty even greater. Brands that set out clear mobile marketing plans will provide themselves with a distinct competitive advantage in the year ahead. **Using mobiles to compare prices, check reviews or product details while in store 15
  • 16. WHAT HAPPENS IN A DAY? Michael Kehoe and David Ahlstrom A typical day in the life Multi-screening In the age of ever flowing data, we still have a need to understand how consumers go about their typical day and what role media plays within that day. We know that multi-screening is on the increase and is clearly evident when we look at the chart here. TV viewing is not being viewed in isolation - 37% of ABC1 25-44 adults used social media, 37% browsed online and 33% searched online while watching TV. This emphasises the importance for brands to adopt a multiscreen approach, ensuring they are with their consumer every step of the way. The Day in the Life (DILO) research is a study of the media consumption habits and activities of Irish consumers tracked across a 24 hour period. With the growth in multi-screening and multiple device usage, a fair and accurate way of measuring all media across the day is required. A DILO report provides a single currency of media consumption across all media touch points. Our second DILO report, conducted in June 2013, with a 1,000 nationally representative sample measures media consumption patterns and other activities they participated in yesterday on an hourly basis. “a single currency of media consumption across all media touchpoints” Source: Mindshare Day in the Life of study 2013 16
  • 17. Device Usage When do main shoppers go shopping? DILO also allows clients to look at cross-media consumption and device usage for different audiences; enabling greater understanding of media consumption and more acute targeting for campaigns. For example, 81% of ABC1 25-44 adults watched TV yesterday with 69% watching via a regular TV set. No major surprises! However, 10% watched TV via their computers and 9% watched TV on their smartphones which is something we expect to increase in the coming year. The main implication is clear – the need to widen audio visual (AV) campaigns beyond TV for added reach. The ability to overlay daily activities with media consumption hour by hour is the key to accurately reaching consumers when in the correct state of mind. From the graphics overleaf we can see the differences between a standard weekday versus weekend. During the week grocery shopping peaks from 10am-1pm and is at it’s highest 4pm-5pm. While weekend shopping begins earlier and is generally at a higher level across the day. When grocery shopping is overlaid with media activities we can see that radio is generally consumed close to the time of shopping, while online is with the main shopper throughout their shopping experience. DILO is a powerful tool allowing a deeper and comprehensive view of the Irish consumer across a typical day. As media fragmentation increases, it is vital we have this knowledge to apply to campaign strategy and planning for 2014 and beyond. 17
  • 18. MAIN SHOPPER WITH KIDS: WEEKDAY Source: Mindshare A Day in The Life (DILO) 18
  • 19. MAIN SHOPPER WITH KIDS: WEEKEND Source: Mindshare A Day in The Life (DILO) 19
  • 20. THINKING DIGITAL Mindshare’s structure as an organisation has evolved to better service our client’s digital requirements. We believe the future for all media is integration and the adaptive nature of digital means we cannot afford to have it run separately and miss opportunities for better return on investment through media synergy. Therefore we’ve adapted our structure from a separate digital team, to full integration of digital services within our planning and buying teams. Within the planning teams our Digital Strategy Directors, Fiona and Maeve work with clients to identify the challenges and opportunities facing brands and provide strategic direction. The search marketing team’s work is intrinsic to digital strategy and Vanessa leads a team of experts in paid search, SEO and analytics. Digital implementation is headed up by Jill Robinson who also leads AV [TV, Cinema and VoD] buying thereby extracting maximum value across media. Jill Robinson Head of AV & Digital Investment @J_Ro Maeve O’Gorman Digital Strategy Director @MaeveOG How does cross media implementation benefit clients? We have structured the agency so that buyers are more integrated into the planning process, trading cross platform, ensuring the process is more streamlined. For our clients it means we are best placed to take advantage of the cross media solutions available in the market to deliver the right audience, in the right environment. 20 What are you most optimistic about for 2014? The popularity of the data discussion and its potential uses are building towards the creation of some really exciting activity. It’s nothing new for marketing to use business intelligence to create great campaigns, but the difference now is that the quantity and variety of data being captured by brands will lend itself to new and original ideas.
  • 21. Fiona Gallagher Digital Strategy Director @FiGall01 Vanessa Vallejo Head of Search @VanVallejo What is the key digital challenge facing clients in 2014? What search trends are you most excited about for 2014? In today’s world where consumers share on average 3,254 pieces of personal info digitally per week and are constantly connected, brands will need to create fast-decision making structures across their entire organisations that can leverage real-time data intelligence and dynamically communicate in key cultural moments. The convergence of mobile/voice search, 4G and responsive design will make mobile central to all commerce, whether off or online. Retailers that understand this and attribute their data accordingly will be miles ahead of the competition in 2014. 21
  • 22. MAKING NEWS PAY – PRINT OR DIGITAL? Darren Bracken We talked last year about how print titles are evolving to stay relevant to the modern consumer and this still holds true. However, we can see that print houses are doing more than just driving the online version of their printed editions. There are some key considerations to look at for 2014: Revenue In the last number of years we have seen huge declines in reported Press revenues, as we go into 2014 that decline will reduce. This is very positive news for the Press industry, in previous years they had to contend with two elements, the declining revenue and the need to adjust to the increasing digital needs of consumers and in turn the integrated sales packages which were required by advertisers. With the immediate threat of further revenue decline being removed, we envisage news houses investing in further up-skilling of their staff, which will benefit sales offers. News Houses also have the added benefit of the World Cup next summer, which will undoubtedly add value in improved circulations and the potential for increased advertising revenues. 22 Digital beginning to drive revenue Whilst newspapers have been investing in their digital offerings, the return on investment from digital advertising revenue has been disproportionate. However, fortunes turned towards the end of 2013 with many publishers citing improvements in revenues, mainly due to digital growth. For example, Independent News and Media’s Jan-Sep report stated a 8.1% ad revenue decline versus 12.7% for Jan-Jun; essentially an 18% increase in digital revenues Jul-Sep improving their position. What has been the turning point for News Houses? There are several reasons – adjusting their sales offering to include better crossplatform packages and sales teams adequately equipped to do this job and in fact in 2013 we’ve seen Irish Sun, Irish Mirror and Sunday World all launch their websites. One other important change has been the improvement in the advertising opportunity – landmark and high impact formats, rich media and video opportunities, simply good brand building formats. In 2014 we will see digital contributing an even larger percentage of the overall revenue, driving better return on investment.
  • 23. Is circulation the only measure? Paywalls: To change or not to change In 2013 we still saw newspaper circulations in decline, however readership for newspapers is holding at 81% (all adults). But should we be so focused on circulation figures when online readership is growing? 13% of all adults read newspapers online, but this figure increases significantly for certain demographics – 39% of ABs working full-time read a daily newspaper online. Throughout 2013 we saw news houses announcing the possible introduction of paywalls for their products in 2014. We in Mindshare do not see this as a positive move for the industry. Paywalls while providing short term gain in terms of subscription revenues, ultimately leads to huge declines in visitor numbers to the websites and dilutes the digital offering they are selling to clients, as the potential reach of a campaign is restrained. In 2014 we would hope to see newspapers reversing these plans. Publishers however are still attempting to counteract circulation declines through (1) branding campaigns such as Irish Times, Irish Independent and more recently the Sunday Business Post; and (2) short-term promotions, those that result in small increases in circulation week on week (CDs, books, offers). Like all other brands newspapers have the same issue juggling brand building and activations. Currently we see that those who continue to invest in activations are maintaining their figures. The Irish Daily Mail saw the least decline in the latest ABC report (Jan-Jun13) with 51,740 down from 51,841. “In 2014 we will see digital contributing an even larger percentage of the overall revenue for news houses” 23
  • 24. USE YOUR DATA TO SEE THE WOOD FOR THE TREES Dave Bruen The Big Data conversation rolls on. For governments and citizens; Edward Snowden, whistle-blowing and NSA surveillance, all illustrate the sheer volume of data in circulation and the controversy around privacy. For marketers, how best to gain insights from available data sources remains a priority. And these insights come, not from having myriads of data, but from having the ability to gather, integrate and analyse that data. Clients who are successfully navigating their way through these data sets are improving and refining their CRM and customer segmentation models, to identify valuable customers and develop more effective retention and acquisition strategies. These are also the clients who acknowledge that the best results come when there is a commitment to data sharing and evaluation. Given the complex nature of the consumer decision making process and path-to-purchase, a focus on the last consumer touch point, whether it‘s a phone call, search click or display banner, is no longer appropriate. Effective measurement now requires that every brand engagement is factored into the model. While effective attribution modelling allows us to improve efficiencies and gather insights we also believe that a more holistic approach is also required; that is the correlation of the many variables that influence business performance, with the results. So what’s the promise? As we’ve discussed before the proliferation of data can be a double-edged sword and sometimes it’s hard to see the wood for the trees. However it’s an area where we are now adding real value for clients. Through client accessible dashboards we are providing transparency and an up-to-date sharing facility that saves time, provides greater visibility and accountability and delivers insights to support internal business decisions. Source: Facegroup 24
  • 25. Last year we introduced our web-based analytics tool and this has now been developed further, to introduce real-time web-tracking and baseline analysis. Furthermore our technology team in the UK has been developing best-in-class proprietary tools that are we are now ready to share. So now we have a suite of tools and applications that are accessible to all of our clients; large and small, local and global. And we’re ready to bring these solutions to even more Mindshare clients in 2014. And how would we like our clients to proceed? Clean up your data; by determining what is actually valuable through a data audit you can reduce your data storage costs and put the valuable data in clean usable formats. Share your data with your business partners, the full benefits of your data will be realised when combined with data from other sources. Invest in tools, the scale of the data requires tools that can delve into it and discover correlations that will guide your business towards better return on investment. Source: Flickr Creative Comms “…insights come, not from having myriads of data, but from having the ability to gather, integrate and analyse that data” 25
  • 26. DIGITISING OUT OF HOME Jane Nash, Vivienne Storan, Clodagh Ryan As all media evolves into the digital world, outdoor is no different with digital Out of Home (OOH) innovations set to be at the centre of 2014. With consumers exposed to so many brands and media formats, driving engagement and relevancy has become increasingly difficult to achieve. Further, consumer demand for more entertaining and relevant advertising has led to the ever evolving digital innovations currently taking hold within this sector. To make brands more relevant and engaging, outdoor advertisers need to adapt to these evolving innovations. As far as digital signage goes, only tremors have been felt to date with the real explosion yet to take hold. The exciting thing is the progression of OOH becoming a much more targeted and accountable medium. Traditionally, OOH has been used as a big impactful medium, guaranteed to reach a mass audience. There’s no denying that creating big impact and high reach is still a key role of OOH, but with the help of newer specialised digital technologies, OOH is set to become a lot more tailored in how it can deliver more relevant messages and this in itself will have greater impact and cut through for brands. 26 Similar to cookies that follow us as we navigate online, there will be new technology that will soon follow us on our morning and evening commute, think Minority Report, when we all thought that digital future was so far ahead, that kind of digital targeting in OOH is now upon us. “As far as what digital signage can oer, only tremors have been felt to date with the real explosion yet to take hold.”
  • 27. Some of the key trends to look out for across digital outdoor: Facial recognition – to serve targeted outdoor ads by age, gender and mood. This technology is already here with Tesco having begun trialling in the UK but has yet to be fully embraced. With these advances in digital technology set to be embraced across 2014, it’s exciting times ahead for consumers who are going to receive a much more engaging and tailor-made experience from brands looking to reach them through OOH. Contextual Advertising – consumers being served digital outdoor ads relevant to their situation for example it’s almost lunchtime so an ad for a restaurant near by. NFC ( Near Field Communications) – we really expect this to grow in 2014 as smartphone penetration increases allowing advertisers to serve consumers with additional advertising rich media content, product information and promotional offers to name a few. Personal preference – through building up profiles on consumer shopping habits from mobile devices and NFC, advertisers can target consumers with products they’re likely to have an interest in based on previous experience. Source: Kinetic & endgadget.com 27
  • 28. EXTENDING TV REACH WITH VoD Ken Nolan Video on Demand (or VoD for short) is not new news. It has been a part of media plans for a number of years and for most advertisers has sat most comfortably when signing off TV activity. The argument for VoD on plans is a simple one. TV consumption has become more fragmented. To ensure that we are reaching and maintaining strong coverage, agencies seek out eyeballs, whether they are viewing on 50” plasma or on an iPad. In the same way consumers are no longer channel loyal but content loyal, our plans similarly follow where the content and audience are. Is VoD an extension of TV or Digital? It is not a cop-out to say it is both. As an extension of your TV plan, wherever people are choosing to watch their favourite programme, be that live on TV, on catch up via player, or online via a streamed site – we need to make sure that we are capturing these eyeballs. It is not just TV, it is AV. VoD, when bought efficiently, results in incremental reach on TV campaigns. The amount of incremental reach depends on each specific campaign and audience. A rough guide on how the unique incremental reach VoD can add to TV campaigns (source: GroupM Ireland) is as follows: · · Housekeepers with Children: 5 percentage points · 28 Adults 25-44: 6 percentage points Adults: 4 percentage points
  • 29. Understanding incremental reach and coverage is essential to reassure marketers of the success of VoD on plans. In Mindshare we use a proprietary tool called WebKarma that allows us to measure combined TV and VoD reach, and shows us the incremental reach using both channels offers. This gives our clients not only the assurance what they are doing is correct – but the confidence to really look and grow their AV penetration in the marketplace. On YouTube and increasingly on other channels, consumers can skip after 5 seconds. On Vine the max time is 6 seconds. Often traditional TV ads place the message or key take out at the end. When content is viewed online messages need to be front weighted and ideally made for that medium. The work done by Lyons and VHI this year are two prime examples of brands understanding how best to use the medium. Through econometric study, we have measured the effect of VOD upon last click and compared those results to other Online formats. Whilst we need to carry out further study across a wider group of advertisers, our initial findings point to VOD delivering 5 times the influence on the final click compared to other Online formats. Points to remember for VoD planning: · VoD is an extension of TV and so needs to be on every plan alongside your TV buy to help build reach and coverage. · When planning TV creative, brief in your creative agency from the outset that you will be using VoD channels. · Make sure there is other online, search etc. running alongside the VOD campaign in order to maximise the Online effects. · Plan and buy VOD using and reporting the same audiences as your other TV and Online activity. Can we simply run our TV ad on VoD? While the simple answer would be yes, this is not respecting the format. To do this would be the same as taking a print ad and putting it on outdoor and expecting the same results. This approach is simply a tick-the-box exercise, but not maximising the return you can get within that given channel by tailoring the message to suit the medium. How consumers view content is changing. Online video ads outscore TV ads 2-to-1 in message recall, according to IAB/Nielsen study – so brands need to make the message count! “VoD, when bought eciently, results in incremental reach on TV campaigns” 29
  • 30. ADAPTING DIGITAL TO DRIVE RESPONSE Ricky Joyce & Maeve O’Gorman Digital Direct Response (DR) advertising refers to online campaigns which are planned to derive a specific reaction from consumers at the lowest possible cost. Digital DR is in a constant state of flux, driven by the speed at which the latest and greatest technology is replaced and surpassed by new products. It’s about being adaptive, which you will have already come across in this book. To be at the cutting edge of this for 2014, we consider the five areas below as paramount; 1. Increased investment in Programmatic buying 2. Taking on the cookie challenge Cookies - small pieces of code that are dropped onto an internet browser to track activity - have received bad press recently, and some of the big players in the online space (Google, Facebook) have begun to develop their own solutions to try to replace cookies. This development could disrupt the current models of online DR advertising which depend on them. Cookies provide advertisers with information about the consumers viewing and interacting with their ads for tracking and optimisations. This may become a major issue in the future but we believe the cookie is safe, for now. Programmatic buying means the utilisation of automated buying within a campaign, usually based on a mixture of algorithms and adaptive marketing rules set by the advertiser. Programmatic buying software analyses numerous factors to determine how best to buy, phase and optimise digital campaigns. An increasing share of display advertising is moving towards programmatic buying due to its inherent efficiency. Although programmatic suggests little or no human intervention, algorithmic optimisation can only do so much. Smart optimisations made by analytical traders amplify performance significantly. Brands can expect to see more programmatic buying on plans in 2014 and better performance as a result. Source: Deweys.com 30
  • 31. 3. Going mobile 5. Improving your performance measurement One major weakness with the cookie solution is the unfortunate fact that it simply does not work on mobile. Mobile already represents 20% of all internet traffic globally (Statcounter, Aug 13) and it is the only media where consumption is growing (eMarketer). The key to cracking mobile DR is to plan efficient user experiences and deliver consumers to their goal as directly as possible. There are areas where mobile DR will excel; e.g. driving calls to call centres and providing location information. Brands should create mobile friendly information on their websites to capitalise on these opportunities. Getting your attribution right is more important than ever before, in fact 55% of marketers expect to invest more in understanding attribution better in 2014 than ever before (eMarketer Sep 13). These tools can be expensive to set up but the long term business benefits are massive. As brands better understand the roles of different media in the consumer journey they can better adjust all media investment to optimise towards both hard metrics like sales and soft metrics like bounce rates. 4. The potential for social DR Social media platforms namely Facebook have long offered brands low cost inventory within very basic ad formats on their sites. The development of the Facebook Exchange, was the first major move to grow this. In 2014 this will evolve again as Facebook are testing the roll-out of their ads outside of their own site. Taking opportunities to use rich social data outside of social networks will be of massive benefit to brands. The brands that embrace these challenges and hit them head on will be the ones who find themselves in the best position to speak more effectively to their target audience. Digital DR is a long road with many twists and turns, but for the ones who get it right, it is a journey worth taking. “opportunities to use rich social data outside of social networks will be of massive benefit” 31
  • 32. THE INTERNET OF THINGS (TO COME) Fiona Gallagher There is much in this document that details how data, technology and mobile have changed forever the path to purchase funnel and how this will play out for brands in 2014. However, it is important to note that these influences are just stepping stones to a world where it will be hard to determine the physical line between devices, individuals and the internet. Hand held mobile devices (be it a smartphone, tablet or the cross-breed phablet) will evolve into ‘wearables’ such as Google Glass headsets, Samsung Galaxy Gear smart-watches, rings and even t-shirts that can monitor our heart rate or determine what shoppers actually see as they navigate around the shopping aisle. The Irish adult has on average access to three on-the-go mobile devices at home*, but shortly the home will see more and more devices – TV, radio, kitchen appliances and food packing – IPenabled and seamlessly connected to the Internet via the Cloud. More screens and more data – all providing the opportunity for brands to both dynamically identify and address consumers at the exact moment of need or alternatively deliver content at unexpected times. We talk about the challenge of Big Data but, truth be known, we are merely shaking hands with Baby Data whilst that growing shadow behind us is Daddy Data We talk about content marketing but more connected devices giving rise to more screen real-estate means that brands equally need to be focusing on their screen distribution strategies. The buzzword of 2013, ‘native advertising’, already represents a move away from standardised ad formats, such as MPUs or skyscrapers that sit on the side line of the content to ads that are much more contextually relevant and tend to be delivered within the news steam of mobile newsfeeds. No longer can audiences be defined by their demographic, and no longer can media be defined by channel. Rather, in 2014 I would encourage brand marketing teams to foster and harness greater collaboration with their sales, product and shopper marketing colleagues to ensure that multiple data sources are collated to both apply real-time intelligence and content creation for the next stage of connected consumer, connected devices and connected homes. “brands need to be focusing on their screen distribution strategies.” 32 *(Source: eircom HSS report Sep 13)
  • 33. For more information on the topics that you have read here – check out the following blog posts on blog.mindshare.ie Social Media The Internet of Things Twitter Driving Word Of Mouth And Sales April 2013 Have you got The Gear? September 2013 Four Ways To Boost Your Brand’s Visibility On Facebook September 2013 Google Glass – The Future In Sight October 2013 Print Search Musings on the Press Industry April 2013 PPC & SEO – Should We Bid On Terms When We Rank Organically? January 2013 JNRS Embrace Digital In Their Latest Survey September 2013 Tips for Improving Adwords Quality Score November 2013 Mobile AV Online video – An IAB Study from The US May 2013 Brands Who Dare September 2013 Rise Of The Tablet April 2013 Turning Mobile Apps Into Sales Engines October 2013 Radio Spin is Growing Up June 2013 Consumer Insights What do we mean by Engagement? May 2013 Day In The Life Research November 2013 Are we all Emotionally Weak? December 2013 All the facts and figures from JNLR October 2013 33
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  • 35. EVERYTHING BEGINS & ENDS IN MEDIA 36