Mindshare Digital Nation POV - 2013 Round-up


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A yearly round up of "Digital Nation" weekly comments that are based on the news and implications.

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Mindshare Digital Nation POV - 2013 Round-up

  1. 1. POV: 2013
  2. 2. POV: 2013 introduction We’ve collected a whole year of Mindshare ‘Point of View’ articles together to give you a complete picture of how the industry has developed in 2013. CONTENTS Acquisition by Facebook of ATLAS from Microsoft 3 INSTAGRAM VIDEO 33 Samsung’s Tizen-Based Phones 4 Facebook #Hashtags 34 Facebook Goes Into the Search Business 5 LinkedIn Sponsored Updates 35 CES 2013 Summary 6 Facebook Results 36 Google ‘Shopping Ads’ 7 Google Chromecast 37 Vine,Video Sharing by Twitter 8 Pinterest Price Drop Notifications 38 YouTube to Introduce Paid Subscription 9 AOL Buys Video Exchange Adap.tv 39 10 TYNY July 2013 40 Twitter’s Ad API 11 ITunes Radio 41 Firefox 22 And Cookie Blocking 12 Twitter Goes on the Offensive 42 FACEBOOK REVEALs ‘NEW LOOK’ NEWS FEED 13 Twitter’s Upcoming IPO 43 Mobile World Congress 2013 14 Grand Theft Auto V 44 SxSw interactive 2013 wrap-up 15 Google goes secure 45 Twitter to Launch Music Service 17 An Update From China 46 facebook home 18 Twitter Brings Keyword Targeting to Social 19 Hummingbird Algorithm – Google Gets Sweeter Results 47 Twitter Launches Music Service - UPDATE 20 Pinterest: Promoted Pins 48 Facebook’s New Video Ads 21 Facebook’s new app advertising format 49 taking a bite out of apple 22 Instagram: Photo stream ads 50 WHERE NEXT FOR YAHOO? 23 Apple iBeacon 51 Ferguson Retired 24 Twitter expands into TV 52 Amazon Coins 25 DoubleClick Bid Manger gets FBx access 53 YAHOO BUYS TUMBLR. 26 New Google AdWords Ad Rank Formula 54 Microsoft and the Xbox One 27 Google Banner Ads 55 Apple iOS 28 Face-scan technology to target ads 56 Facebook Simplifies Ad Offering 29 YouTube One Channel 30 PlayStation 4 vs. Xbox One All POVs are written ‘in the moment’ (we start Sony and the PlayStation 4 31 Yes We Cannes 32 Tweet-A-Coffee 57 TV-Sync Facebook Ads 58 Twitter’s “Conversation Targeting” 59 Apple Buys PrimeSense 60 with January and go through to November) and were correct at time of writing. 2
  3. 3. POV: 2013 Implications Christopher Doyle Acquisition by Facebook of ATLAS from Microsoft Facebook has confirmed that it has entered an agreement with Microsoft to purchase Atlas, the digital ad server and measurement solution BACKGROUND Although the financial details haven’t been disclosed, the acquisition says a lot about the digital fortunes of both Facebook and Microsoft; the latter limiting its ambitions in selling online advertising, whilst the former is using its considerable clout - one billion users and counting - to become a hub for advertising. Amidst murmurings that Atlas’ direction was waning under Microsoft’s stewardship, the purchase is certainly exciting news for advertisers. With Facebook’s eagerness to discover innovative ways of monetising its service and turning a profit for its shareholders - something that’s proved particularly challenging in the face of stiff competition from Google - the world’s largest social network will now be hopeful of proving its value to brand marketers. Atlas will enable Facebook to show advertisers how well its ads drive sales or help to achieve other marketing targets. Part of Atlas’ appeal is the ability of its advertiser solutions to decide which ads should be displayed to which internet user. However, its major selling point is the proprietary data that tracks media attribution for online purchases, detailing how ads have influenced and encouraged transactions. If somebody buys a new coffee machine, for example, Atlas will show marketers if the same customer was exposed to any of the brand’s online ads in the days leading to the purchase. In addition, Facebook will be able to track further touchpoints in the consumer journey by combining Atlas’ existing features with the capabilities of Nielsen and Datalogix. “To do a much better job of making sure the right messages get in front of the right people at the right time”. Brian Boland, Facebook’s director of monetisation product marketing, said the acquisition of Atlas is driven by a desire to achieve a ‘holistic view’ of campaign performance, allowing marketers and agencies ‘to do a much better job of making sure the right messages get in front of the right people at the right time.’. Facebook plans to invest in Atlas’ capabilities by scaling its back-end measurement systems and upgrading the current suite of advertiser tools on both desktop and mobile, while user interface and functionality will also be improved. Summary While good news for Facebook and its marketing potential, Microsoft’s sale of Atlas is continued fallout from the disastrous $6 billion purchase in 2007 of Atlas’ former parent company, aQuantive Inc. At the time, Microsoft believed the purchase would position it as a leader within the digital advertising sphere. In reality though, the value of Microsoft’s digital advertising business continued to fall, while some advertisers have argued that the company has allowed Atlas to drift. Rather than brokering ads across the internet - a la Google - Microsoft has cut its losses and will instead focus on selling advertising on its own platforms and products. Facebook’s acquisition of Atlas should result in a significant increase in the sophistication of ad campaign analytics, giving brands a more complete view of how their Facebook advertising spend is performing. For brand marketers, the enhanced attribution and ROI features Atlas will provide for Facebook campaigns will enable them to justify shifting more advertising dollars to the social network. 3
  4. 4. POV: 2013 Marta Mattioli & Matt Mint Samsung’s Tizen-Based Phones Samsung has announced plans to launch multiple devices using Linux-based mobile operating system Tizen For advertisers it exacerbates the problem of needing to produce mobile and tablet assets for multiple operating systems. Implications Samsung is currently using Google’s Android OS as well as an OS of its own (Bada), but it is thought Samsung will quickly transition all devices onto Tizen. This move is being largely interpreted as Samsung’s response to Google’s acquisition of competitor Motorola for $12.5 billion in May 2012. For Google this could mean gradually losing a powerful distribution partner in the market and therefore losing some ground to Apple’s iOS. Given the proliferation of operating systems and the barriers put up by their owners to make switching seem complicated and therefore undesirable, it’s possible we’ll begin to see the launch of ‘switching services’ – helping consumers transition content from one operating system to another. Those that can offer favorable conditions can poach users from other operating systems and devices, ensuring that the consumer buys content through them and not their competitors. For advertisers it exacerbates the problem of needing to produce mobile and tablet assets for multiple operating systems. Most global advertisers will need to ensure they produce assets for the key operators including Apple, Android, Windows and now Tizen. BACKGROUND This represents a significant move away from the Google-owned Android operating system it has used in most, but not all, of its devices to date. Based on Samsung’s market share, this move could see Tizen quickly establish itself into the 3rd or 4th most used operating system behind Apple and Android. Released at the beginning of 2012, Tizen is a free Linux-based, open-source software platform for multiple device categories, including smartphones, tablets, netbooks, in-vehicle infotainment devices, smart TVs and more. This means Tizen can provide a consistent user experience on multiple devices. It is led by Samsung, which in 2012 invested $500k to become a platinum-level member of the Linux foundation alongside IBM and Intel. It supports both Intel and ARM processors and its SDK and API allows developers to use HTML5 to write applications. At the moment Tizen is not the default OS on any mobile devices, but during Consumer Electronics Show (CES) in Las Vegas in 2012, it was shown working on a Lenovo tablet. Summary This new OS is not the only one challenging Android and iOS in the smartphone market: earlier this week it was announced that the Ubuntu OS would soon be available on smartphones, and Windows continues to make gains. Although these may not be the biggest threat for Apple and Android thry do represent a further fragmentation of the market which should lead to more control for consumers and less autonomy for operating systems. 4
  5. 5. POV: 2013 Facebook Goes Into the Search Business Just a few short months ago Facebook couldn’t do anything right BACKGROUND Universally derided for its IPO debacle, every pundit in town took their turn lambasting the former darling of the media industry. What a difference a few months make. Not only has Facebook’s stock nearly climbed back up to its original IPO evaluation (around $30 as of writing), the company has also kicked off 2013 with a bang by announcing a major new feature, Graph Search. Graph Search will enable users to ask basic questions and get answers based on the Facebook ecosystem Graph Search enables users to get information through their network of friends, or their “social graph”, and importantly includes brand pages, thus encouraging marketers to invest in stronger fan hubs within Facebook as well as on the Web. Graph Search will enable users to ask basic questions such as “What’s the most liked Mexican restaurant in London” and get answers based on the Facebook ecosystem - friend’s data, applications, brand pages, etc. The initial beta will be limited to US English Facebook users. In addition to Facebook content, Web search results will also be included, all powered by Bing, and including Bing advertising. Further roll-out by user, language, and market will happen after the initial test. Implications A Facebook search product has been one of the industry’s long-standing rumours, and is clearly a direct challenge to Google, which is busy layering G+ social intelligence into its search algorithm, which remains its prime business and core strength. Facebook’s approach relies on incentivizing its 1 billion + users to tap into more of the social network’s features by simply making it convenient to stay within its ecosystem to perform the Internet’s most basic functions. However it will take some persuading to get consumers and advertisers to migrate such ingrained online behavior into Graph Search given Google’s dominance in search, (in some cases over 90% of a market as in the UK). Bing has tried for years, even going so far as to weave in Facebook data, but has struggled to significantly change market share. Sticking Bing into Facebook is a logical move but may not be enough to fundamentally alter a consumer’s kneejerk reaction to ‘Google’. ‘Graph Searching’ doesn’t exactly roll-off the tongue. In addition to taking on Google, Facebook may simply be looking for ways to bolster usage on its platform. Recent data and research from SocialBakers indicates that Facebook’s users are dropping out or simply less engaged, all of which would mean less inventory and less people to target with advertising. Facebook deny this and other assertions, including the long-dreaded youth exodus to places like Tumblr. Functionality such as a Graph Search will potentially give such people a compelling reason to stay and engage. Summary After a difficult 2012, Facebook now has some clear momentum going into 2013. Its share price has rebounded in the market as investors have regained confidence in its ability to monetize the platform, particularly in the mobile space. Graph Search open up a new revenue stream while providing existing users another reason to stick with the platform, growing ad inventory in the process. This may be the first of several new Facebook features and enhancements lined up over the next few months. No doubt Google is just around the corner with its response. 5
  6. 6. POV: 2013 BACKGROUND Norm Johnston CES 2013 Summary It’s extraordinarily difficult to capture the madness of the annual Consumer Electronics Show in one pagE Imagine the world’s largest Best Buy electronics shop pumped up on steroids and populated by a strange mash-up of intense tech geeks, cuttingedge marketers, and advertising and media honchos….all in Vegas. Here’s a quick take on some of the key talking-points and trends. Will or won’t Apple get into the TV business? The consensus is yes, most likely next year. The Internet of Things More and more things getting connected to the Cloud as objects get chipped, connected, and cognizant. Nearly everything on display from washing machines to toothbrushes to cars had some IP-enabled capability. Connected automobiles in particular seem poised to break through the CES price-prohibitive showroom into an everyday dealership offering. Interestingly both Ford and GM are opening up their dashboards to third-parties so they can create new utilities and applications, either in car or residing on smartphones, which will control your auto remotely. Phablets The merging of the smartphone and the tablet into a new device, sized conveniently in between the current ones. Samsung’s new Galaxy Note has been the leader in the field, but expect fierce competition as everyone tries to capitalize on a growing category set to double from 25 million units sold last year to over 60 million in 2013. Next up: foldable phablets and screens that can be rolled up into your pocket. Pixelmania It was impossible to avoid the myriad stunning new TV sets dominating the central hall. Large 4k resolution TV’s were everywhere. These new HD screens are simply stunning in their clarity, often feeling better than real life. I spent a good 30 minutes gawking at LG’s new OELD HD display. All of these sets are of course IP-enabled offering new advertising and marketing opportunities, although the ecosystems are still somewhat closed and fragmented into walled gardens. One major player missing was of course Apple, a company known for scaling closed ecosystems. Will or won’t Apple get into the TV business? The consensus is yes, most likely next year. The Elephants in the Room Largely missing from the main event: Google, Amazon, Facebook, Microsoft, Yahoo, and many others. Most were lurking in the shadows hosting big-wig meetings and meals up and down the strip, busily building relevance and experiences on top of all of the gizmos and gadgets in the conference hall. Apple continues to be the main hardware and software player missing-in-action. Rumors continue to circulate around a forthcoming Apple TV, even a new fitness watch (iWatch). Ironically the one company missing from Vegas may be the biggest game changer of them all. 6
  7. 7. POV: 2013 Martin Vinter Google ‘Shopping Ads’ Google is no longer dependent on revenues from search only In December last year Google announced plans to roll out Google Shopping. Implications BACKGROUND In December last year Google announced plans to roll out Google Shopping. These new and more distinct looking shopping ads are based on Product Listing Ads (PLA) and appear both in a stand-alone shopping section and blended with traditional sponsored links. The change means an end to the free product listings, pulling in advertisers own product SKU feeds, that have been in place for years. The new format will use the same data feeds with enhanced presentation and of course will charge for each click. The new PLA format has been trialed in the USA and Google plans to start introducing it across the UK and Europe, Brazil, Australia and Japan starting in February 2013. Mindshare has run PLA activity in both the USA and Germany. For clients running PLA we have observed between 1-5% of overall paid search budget going to Google shopping. Most clients have experienced an above average CTR compared to traditional sponsored links on the search results page. Good news for advertisers who now no longer rely on text only to attract clicks on the search engine results page, but can include images of their products and display them more prominently. In short, initial findings are reassuring from a consumer response and campaign efficiency perspective. The days when Google looked more like a one trick pony than a global conglomerate are long gone. Years of pursuing growth through an acquisition strategy have paid off: Google is no longer dependent on revenue from search only. The world’s biggest search engine experienced years of organic growth in the search space, but now the question is how it further monetises with growth slowing to a pace that doesn’t satisfy Wall Street. Google has up to 85% marketshare in most markets. The new model will help reinvigorate growth and no doubt become a staple format along with the long-established sponsored links top, right and sometimes bottom of the search results page. Summary Google’s first step in generating further revenue from paid search is through Product Listing Ads (PLA) – already accounting for 11% of overall paid search spend in the US according to Adobe. In fact, according to Adobe almost all of Google’s search market share growth in the US came from PLAs in the 12 months to January 2013. In the wider context of online commerce this move isn’t surprising. E-commerce is experiencing double digit growth globally and Google wants an even bigger piece of the pie. Selling your products, with Google as the middleman, was never going to be free forever and Google has the power over retailers to start charging – or close the opportunity! Google PLA will undeniably be a success as many retailers simply cannot afford not to be present on Google product listings as they look to grow their own revenues. Those retail advertisers not already using PLA should get onboard quickly –never mind Google eating into their profits. Most advertisers will be used to paying Google for sponsored links anyway. New format old monetization model! 7
  8. 8. POV: 2013 Pedro Ramirez Implications Vine,Video Sharing by Twitter Vine is the new social network app created by Twitter that lets you create and share short six-second long videos and publ ish them to Twitter and Facebook. Vine has been described as the new “Instagram for video” BACKGROUND It features no post-capture editing and it limits the user to a fixed set of possibilities, just as Twitter did when it first launched. At launch the app is only available in the iOS App Store optimized for the iPhone and iPod Touch. There’s no word yet on when the app will be available on other platforms. Vine has been described as the new “Instagram for video” as it enables users to quickly capture video and publish it to social networks. Vine enters a crowded field of other similar standard or quality compromised video capture tools (e.g., Cinemagram, GLMPS, Tout, even YouTube with its recent camera capture app). Vine features a feed-like stream of recently published looping videos, with additional user filtering by popularity, editor’s picks, and some curated hashtags. Video starts loading and playing only when it is on the user screen, and in contrast to similar apps, it only plays the focused video’s audio, which goes away as the user scrolls to a different video. There’s an innovative way to capture the video and edit at the same time by touching the screen the recording “head” advances and stops allowing for a video narrative to be composed until reaching a maximum of six seconds. Then users are confronted with a screen allowing them to share to Vine, Twitter and Facebook. Vine’s videos are captured in a video standard that is already native to most phones and browsers, thus enabling the videos to be supported by Twitter cards and embedded and expanded from single tweets when seen on the desktop version of Twitter. In contrast to Facebook’s new video capturing tool, Vine is a stand alone app positioned as a new “art form” separate from Twitter’s text based tradition. Vine is another way for brands to use Twitter as a channel for social interaction with the consumer, albeit via short visual bursts with more emotive content. Similar to Facebook video posts, brands should explore the most compelling video territory for their followers and fans. However, the six-second format will limit the possibilities, either focusing a brand’s efforts or frankly confounding them. Traditional creative agencies may struggle meeting the new formats, and indeed consumer, publisher, or artistic curated content may be more compelling. At launch some brands have started to experiment with Vine creating playful and uncompromising videos “just for fun”. For now it is mostly news organizations and TV channels, although we have already seen some examples by FMCG brands. It will most likely take some time for the platform, and brands approach to it to fully mature. In terms of management, it will be challenging to manage shared login detail access by community and content managers, as for now there’s no back-office self-serve way to manage Vine or to connect it to social media management tools, which may cause problems. For example, a few days after launch Vine hashtag searches resulted in many videos containing sensitive content (nudity, violence, or medical procedures). As a result, Vine has created a process to censor inappropriate videos and warn users of sensitive content with a preload warning message screen. However, expect more “sexting” incidents. Traditional creative agencies may struggle meeting the new formats, and indeed consumer, publisher, or artistic curated content may be more compelling. Summary Consumers, brands, and agencies are just starting to get introduced to the app. With online video advertising set to grow by over 46.5% this year, Twitter may be setting the stage for a new online video advertising format to add to their growing efforts to commercialize the platform. A Twitter promoted Vine ad format may just be on their 2013 roadmap, along with an IPO. 8
  9. 9. POV: 2013 Maxine Hamilton & Eridani Baker YouTube to Introduce Paid Subscription Founded in February 2005 and bought by Google in 2006, YouTube has become the go-to site for video on the web. BACKGROUND With approximately one hour of video uploaded every second, the site is rich in content. In recent years, much of YouTube’s focus was on categorising some of that content into “channels”. YouTube is now looking to leverage that effort via a paid subscription model. For a marketer this assurance of quality content should make YouTube ads more appealing. YouTube is still often associated with cat videos and squirrels on skateboards Summary YouTube paid subscription channels are planned to launch in April this year. Costs will be tiered and will likely allow users to choose ad-supported or ad-free subscriptions. The first step has been to reach out to a small group of channels that have already gained a large audience, asking them to submit ideas to create channels that users would have to pay to access. No partners have been officially named yet, but potential channels include Machinima – the number one video entertainment network for gamers around the world. Machinima’s existing YouTube network has almost 190 million subscribers and has been viewed over 40 billion times. The initial subscription cost would be $1-$5 per month putting YouTube in direct competition with other video streaming companies such as Netflix and Amazon Instant Video. There is also talk of a pay-per-view model for live events such as concerts and sporting events and content libraries. Implications YouTube’s current targeting has proven successful for advertisers, high-end brands have been able to advertise to a high-end audience through clever audience targeting. That said YouTube is still often associated with cat videos and squirrels on skateboards. The introduction of a paid subscription model will set clear boundaries between premium and non-premium content and allow for better targeting. For a marketer this assurance of quality content should make YouTube ads more appealing. Content creators are also likely to be attracted to the new paid YouTube channel, Salar Kamangar the CEO of YouTube has hopes that the new offering will attract smaller ‘indie’ type channels that can’t afford to run in a standard paid TV environment. YouTube is not charging for all its channels, and is instead only applying the model to strong niche channels and new channels. A test-and-learn approach is a pragmatic means of ensuring it balances subscription costs with audience reach. Overall the new model should increase the amount of quality content available on YouTube and so make the space more appealing to brands seeking association with premium content. For brands there are multiple opportunities with the new model, including subsidised consumer subscriptions, exclusive sponsorships, migration of more TVC budget to online video, improved targeting, and of course development of their own exclusive YouTube channel. However, YouTube is not the only option in town. Even Netflix has expanding its subscription business model by developing new original content (“House of Cards”). 9
  10. 10. POV: 2013 Sam Kerr Sony and the PlayStation 4 It’s been seven years since the PS3 was released and gamers and the industry have been waiting with bated breath for the start of a new console generation. One of Sony’s areas of focus in this console generation is making gaming a more social experience BACKGROUND The wait is now over as Sony finally unveiled the new PlayStation 4 during a live press conference in New York on the 20th of February, which was live-streamed to over 3.2 million viewers around the globe. Sony highlighted several key developments including the new PlayStation Cloud service and the heavily updated Dual Shock 4 controller. Sony also briefly touched upon the merging of its online content services across music, video and gaming, all of which will tie into its comprehensive social network capabilities. One of Sony’s main areas of focus in this console generation is making core gaming a more social experience though the introduction of a new PlayStation Eye camera packaged with every unit and the new Dual Shock 4 controller, which includes a frontfacing touchpad, microphone socket and a social sharing button. At a touch of a button, players will be able to automatically upload ingame screenshots or video content onto their Facebook profiles and UStream accounts, video chat with friends whilst playing and even be a spectator in each other’s games. The new PlayStation Cloud service will offer users Sony’s back catalogue of titles as well as a way for them to trial new game demos instantly. Sony says it’s planning to drip-feed more details on the new cloud service over the next few months, the majority of which is expected at this year’s E3 in June. Implications With the focus on social and a rapid increase in user generated content, branded in-game integrations will have a wider impact as it’s not just gamers, but also their various networks of friends who would see brand presence in games. Brands could sponsor in-game events or integrations and could host competitions for the best user-generated videos around branded content. The PS Cloud service is rich in potential for brands as well. By opening up Sony’s vast library of software for PS4 users, brands could capitalise on consumer nostalgia by offering customers free access to classic titles or new releases. Although not yet confirmed, Sony is also likely to package the PS Cloud technology as a subscription service for its connected TVs, tablets and mobile products. And as Sony is also linking all its content services together, it’s likely that the social network that Sony is creating for the PS4 will also be present across its whole product range, which would also mean that the social sharing functionality would become more impactful across passion points, such as music and video, as well as games. Additionally, the new technology of the PS Eye, touchpad and the integration of Move motion functionality into its new controller could be used to create innovative activations on the platform, much the same as how Kinect has been used for advertising purposes for the Xbox 360. Summary Sony is keen to show that it’s learned from its previous mistakes with regards to its content strategy, social capabilities and developer support, by focusing heavily on these areas in the PS4. But considering Sony’s current financial predicament, the success of its drive towards comprehensive content services will indicate the survival of the console industry as a whole as console USPs are gradually being eroded by mobiles, PCs and connected TVs. Whilst it’s likely that there’ll be a demand for consoles for another decade yet, eventually I believe small entertainment oriented PCs will take over the living room for our gaming and entertainment needs. 10
  11. 11. POV: 2013 Implications Anna Bratholm & Marta Mattioli Twitter’s Ad API Twitter is opening its Advertising API (ApplicationProgramming Interface), which will enable marketers to better use Twitter data streams to manage campaigns and improve targeting. BACKGROUND For now it’s only open to five bid management technology suppliers (Salesforce’s Buddy Media, Adobe, TBG Digital, Hootsuite, and SHIFT). Mindshare uses Saleforce’s BuyBuddy as its preferred partner and early results from limited beta test campaigns show promising results. A wider rollout is expected in the near future. Access to performance data and the rise and fall of trends will make for better and more engaging advertising The API will enable advertisers to layer in additional analytics, trends and insights as well as performance data to compile new audience profiles. In addition, the dashboards will take full advantage of the real-time reporting data, which will make targeting and set-up of multiple audiences a lot more manageable. Access to performance data and the rise and fall of trends will make for better and more engaging advertising and marketers will be able to compare the performance of Twitter campaigns side-by-side with campaigns on other platforms, such as Facebook and LinkedIn. As the Twitter platform becomes more attractive from a marketing perspective, users can expect more real-time ads that capitalize on trending topics such as Oreo’s rapid response to the recent #blackout during the Super Bowl. The net effect will be Twitter further cementing its emerging position as the “second-screen” of choice for advertisers and consumers. Given simultaneous TV and smartphone usage is on the rise (85% of US smartphone users watch TV and use their mobile phones at the same time), its scale in mobile users and the fact it’s an experience built for small screens, it has an edge in this space. Twitter’s recent acquisition of Bluefin (a social TV measurement tool) is a further demonstration of its intent to maintain its perceived leadership position over Facebook when it comes to second-screen advertising. For advertisers, the API also means efficiencies both in terms of time spent managing Twitter campaigns, and better return on investment. The flip side is that lowering the entry barriers and increasing efficiencies will drive up competition. On an auction based platform, competition means increased cost of inventory. First movers will undoubtedly harvest the highest returns, while later adopters will find that their competitors have built quality, history and learning that could be costly to outbid. First movers will undoubtedly harvest the highest returns, while later adopters will find that their competitors have built quality, history and learning that could be costly to outbid. Summary The launch of the Twitter API is good news for marketers and is expected to further accelerate the already robust growth in advertising spend on the platform. Twitter users should also get more engaging and timely ads, particularly ones like Oreo’s ‘dunk in the dark’ that react to trending topics in real-time. Now expect the next move in the social wars from Facebook. Twitter specifically highlights that the launch of the API has had no effect on its actual algorithms. A good user experience is still the main focus of the company; bad performing tweets will still be pulled and the number of ads served won’t change. 11
  12. 12. POV: 2013 Summary John Montgomery Firefox 22 And Cookie Blocking we will have no transparency into their users for targeting or analysis purposes. Mozilla has announced that it intends to introduce a cookie blocker into it’s Firefox 22 release, which is due in June 2013. BACKGROUND Although widely reported in the press, the proposal is still under internal discussion at Mozilla. Firefox and Safari (which has been doing the same for the past 10 years) constitute a fair proportion of the Web’s audience who, if Firefox goes ahead with its blocker, will now be largely invisible to third-party data collectors (ad networks, trading desks, research companies and their clients). Microsoft’s move was widely ignored by the industry because it was a “machine” decision rather than a choice made by the user. We have to let industry privacy experts manage the discussion with Mozilla. GroupM is engaged in this conversation. The self-regulatory AdChoices program has gained real momentum. The more AdChoices icons we have accompanying our clients’ advertising impressions, the more consumers will understand how sharing data contributes to a better web experience. • The proposed Firefox policy will allow cookies presented from a domain that users actually visit – dubbed a “first-party” site – but will actually block those generated by a third-party domain unless the user had previously visited the cookie’s site-of-origin. This means that if Firefox goes ahead with the plan, we will have no transparency into its users for targeting or analysis purposes. The industry has been debating what Do Not Track (DNT) means with the Worldwide Web Consortium (W3C) and privacy activists for the better part of a year. As recent as February there was another meeting in Boston to try and move the DNT discussion forward, but with no success. The W3C wants third parties to have to obtain permission before setting cookies on a user’s browser, whilst so called first parties (those parties collecting information off their own site such as Google, Apple, Amazon, Microsoft, Facebook) would be exempt from these requirements. Mozilla has been a staunch supporter of the W3C point of view. Implications The advertising industry contends that this is an imbalanced view and it discriminates against the smaller players who are trying to use third-party data for targeting, attribution and research. The W3C view puts the power firmly in the hands of the major players and is prejudicial toward the many companies who use or depend on third-party data. Join the Digital Advertising Alliance (DAA) and use icons on campaigns where data is collected. • The more transparent we are with consumers, the more they will learn to trust us with their data. • Wherever you have the opportunity, please stress to anyone who is prepared to listen, that Do Not Track is a bad option – it is bad for the Internet, for small business, for growth, for new jobs and for consumer privacy. We also believe that the current AdChoices selfregulatory opt-in model is more privacy friendly. It offers consumers transparency (about who is collecting data) and choice (users can opt-out of data collection). The W3C model, on the other hand, gives users little choice and no transparency: a) you either agree to the first-party terms or are denied access. b) once you are a user of their services, the first parties offer very little control over how your data is collected and used. On the surface, Mozilla’s move is much more aggressive than Microsoft’s recent decision to include a default DNT header in IE10. Microsoft’s move was widely ignored by the industry because it was a “machine” decision rather than a choice made by the user. 12
  13. 13. POV: 2013 Laura Murphy & Charles Warnet FACEBOOK REVEALs ‘NEW LOOK’ NEWS FEED Facebook has announced it will soon be rolling out a new, more visual and less cluttered, look which will enable users to filter the type of content they see in their news feeds and create a seamless experience between mobile and PC devices. teenagers in particular are said to be leaving Facebook in droves background The main changes are: The News Feed stream will be more prominent, with the home page reduced from four columns to three (the news ticker on the righthand side is disappearing); Page posts and ads will become more visual – e.g. larger format, caption overlay on some photos, cover photos in Sponsored Page ‘Like’ Stories; Ability to filter News Feed by Photos, Groups, and Following and finally the Navigation sidebar will come with bookmarks and contacts to match the look of Facebook mobile. The Facebook News Feed changes are aesthetic only and the EdgeRank algorithm, which determines what content will be surfaced in News Feeds, will not be affected. the best way to increase your engagement rate is to produce and post high quality photos and videos. Implications A focus on producing visually appealing content: The changes to the News Feed have made it clear that the best way to increase your engagement rate is to produce and post high quality photos and videos. Re-engage your fan base: The addition of the ‘Following’ tab on the right-hand side of the Facebook home page will allow users to filter content by the pages they ‘like’. Stay tuned for paid opportunities in the “Following” feed available later this year. Choose your page cover photo carefully: In addition to the profile photo, Sponsored Page ‘Like’ Stories will now also include the brand page’s cover photo, which may influence users’ decision to ‘like’ your page. Summary Facebook’s redesign has streamlined the look of the News Feed and aligned it with mobile apps to improve the user experience. However, it’s also likely that the changes are an attempt to win back users with an ever-decreasing attention span (teenagers in particular are said to be leaving Facebook in droves) as photobased competitors such as Tumblr, Pinterest, Snapchat and Instagram steadily capture their lost audience. 13
  14. 14. POV: 2013 The Trends Pilar Martinez, Nacho Suanzes & James Lynn Mobile World Congress 2013 NFC MWC hosted the NFC (Near Field Communications) Experience, a showcase to demonstrate to delegates and attendees the magic of the technology. There were scores of announcements about freshly-forged partnerships that will drive mobile payments, mobile advertising, and mobile commerce to new heights this year including: Foursquare’s integration with MasterCard and Visa to offer special discounts for card holders when checked in to specific locations and Visa’s announcement that it is partnering with Samsung to build Visa PayWave into future Samsung smartphones and also partnering with ROAM to help bring the Visa payment platform to more retailers. This year’s Mobile World Congress (MWC) was the biggest yet. details Over the course of the event, Barcelona welcomed more than 72,000 attendees from 200 countries. Here are the highlights of the world’s biggest mobile get together: The Launches LG brought six distinct handsets to MWC, and although its smartphones were announced prior to the conference, the topend devices still made a splash. LG also unveiled Dual Recording, which enables users to shoot video simultaneously from the front and rear-facing cameras so that the recording embeds the filmmaker’s reaction to the subject in the same movie. Nokia showed off four new handsets that will join its Lumia and Asha lines, aiming to bring smartphone functionality to more costsensitive markets. Huwaei announced that it was launching two new handsets. MWC also showcased an impressive array of devices that blur the line between smartphone and tablet, “phablets”. Samsung unveiled the Galaxy Note 8.0, an eightinch hybrid (the launch of Samsung Galaxy S4 is Thursday 14th March). Other different sized screens included the 5.5” screen on the LG Optimus GPro and Lenovo K900, and the 5.7” screen on the ZTE Grand Memo, to the larger 7” screen on the Asus FonePad. Media Takeaway: The mechanism for mobile payments and mobile wallets offers a range of opportunities for brands to engage with consumers, e.g., click-to-wallet solutions that seamlessly deliver discounts/coupons, a platform on which to build loyalty schemes and new data streams to utilise. However, any activation in this space must consider how the platform impacts and can improve the current user journey. Connected Cities The GSMA (The GSM Association - the organization behind MWC and made up of the world’s mobile operators) is moving beyond the connected home to focus on the Connected City, showing how retail, municipal and personal can be networked together to increase the efficiency and safety of dense urban habitats. AT&T showcased energy consumption and home security management systems, Deutsche Telekom and IBM demonstrated how mobile helps create better public transportation, and Vodafone showed how they can monitor solar energy production while remotely controlling street lighting and signage for maximum energy efficiency. All of these technologies focus on machine-to-machine connections, also known as ‘the Internet of Things’, in many places cutting humans out of the loop to create the best results. Media Takeaway: Connected devices open a wave of new opportunities for brands to create intelligent products, services and communications. Developments in this space offer new routes for content delivery and a rich stream of data to generate actionable insight. Practical Mobile Emerging markets featured heavily in presentations at MWC, with both Nokia’s and Mozilla’s CEOs highlighting that the next billion internet connections will come from mobile users in these low-to-middle-income countries. This anticipated growth meant that the event saw manufactures launching devices to target these markets. The most exciting development was Mozilla’s announcement of the launch of Firefox OS, an OS built on open web standards and capable of operating on much less sophisticated devices. Media Takeaway: Recognition must be given to nuances in consumption patterns and a focus on emerging markets is crucial. Test and learn strategies must be deployed to explore the most effective means of communication. Keep in mind that smartphone penetration levels, while growing dramatically, are still low in many markets. Alternative marketing tactics (SMS, MMS, browserbased marketing) may be the norm not the exception. Dual Recording, which enables users to shoot video simultaneously from the front and rearfacing cameras 14
  15. 15. POV: 2013 Neil Carty, Joe Migliozzi, Gabe Misarti, Mark Evans, Smita Allex, Meg O’Brien SxSw interactive 2013 wrap-up SxSW Interactive began as the multimedia portion of the SxSW Film Festival back in 1994. The most exciting development was Mozilla’s announcement of the launch of Firefox OS current trends on the horizon require slower moving hardware and software changes BACKGROUND Its original intent was to focus on community-driven technology creativity with a specific emphasis on how the Internet can create a positive impact on the world. It has since become a crossover event consisting of three key areas (Film, Music & Interactive). However, in 2013 we saw the emergence of a new category, fashion, with numerous panel sessions centered on fashion tech as well as ancillary events from designers like Billy Reid. Every year, tons of startups and technologies flood Austin while we as marketers look to navigate the madness in the hope of finding the next Twitter, Foursquare or game changer. The event itself has been criticized in recent years for not delivering companies of such caliber. However, it’s important to appreciate that the disruptive trends of 2008-2010 at SXSW stemmed from smart phone growth and changing user behaviour. These were mostly software based and quick moving, while the current trends on the horizon require slower moving hardware and software changes. This year, the team from Mindshare US identified key trends seen on the ground. 15
  16. 16. POV: 2013 Trends: 1. Brand as Narrator: Austin hosted a slew of panels focused on storytelling and positioning brands as characters with a unique voice and as the narrators. Using specific tactics to get that story across must be taken into account as well as developing rich character arcs early on in the content strategy and development process. 2. Behavior Design: The use of technology to stimulate small changes in our behaviour that over time leads to life changing habits. This trend is closely tied to the “Quantified Self Movement” via wearable technologies (Nike Fuel, Fit Bit, Jawbone UP) as well as an overarching trend in the adoption of iHealth devices. 3. Digital Health & Wearable Technology: Continuing the trend that began with the iHealth devices at CES, there were a large number of digital health sessions that gave perspectives on navigating the pitfalls of health data compliance in an increasingly digital/social world. 4. The Future of 3D Printing: Bre Pettis of Makerbot kicked off SxSW with a keynote focusing on the future applications of 3D printing. The company announced a technology that models objects up to 8” in height into digital 3D models. This move turns the company from a 3D hardware company into a 3D ecosystem. More importantly, the innovations 3D printing will drive in manufacturing, rapid prototyping and biotech printing are immense. 5. LoMo With A Side of So: There were a lot of conversations around location-based mobile and how companies can get better at using data on a more localised level to have more relevant conversations with their audiences. Facebook and Google focused on how the mapping/check-in data can be aggregated into more social sharing functionality. In addition, social mapping app, Plotter won the SxSW Accelerator competition. 6. Promotion of The Startup Ecosystem: City governments vied for attention this year as they looked to promote their own growing tech/ startup ecosystems. Representatives from Silicon Valley (SF), Silicon Alley (NY) Silicon Prairie (Midwest), Silicon Beach (LA) and Las Vegas (SxSW V2V) were all in attendance. Which will be the next to emerge? Our bet is Detroit, with its ties into the automotive industry, low real estate prices and the rise in in-auto technology. 7. Crowd-Sourcing Transportation Solutions: An ongoing trend at SxSW has been crowd-sourced transportation solutions. Travelscout was a new app that launched around SxSW that gives users every possible option to travel between destinations with the goal of decreasing the number of cars on the road. This also follows other apps including SideCar and Lyft, where ride sharing is a central theme in the app. Waze is a leading social network for drivers that facilitate the sharing of current road conditions and destination information, all in real time. 8. Local Content Curation: With the fragmentation of TV viewership and consumers viewing more and more content on their mobile devices, companies like Local and Narratively have emerged to help viewers curate news based on location. Both in their web-based and mobile experiences, users can localize news, entertainment and sports content based on their geographic location, drilling down as far as the city level. 9. The Chameleon-isation Of Tech: As seen at CES and followed at SxSW, companies that provided technologies to help weather-proof devices from water, sand and the elements were everywhere. Technologies ran the gamut from heavy duty casing to spray on waterproofing adhesives. 10. Big Data, Big Data, Big Data: One of the hottest topics for brands is what to do with the onslaught of data that is now available to them. The data landscape has changed immensely in the past few years and chances are it will continue to change at an accelerated rate. The conundrum of big data is that it is largely disjointed – both in source methodology and analysis. Brands and agencies are searching for a way to not only make the mounds of data meaningful, but to find a way to use it in real time to impact their strategy and business. 11. The Return of Analogue: Today, many of us consider our mobile devices as our default screens. As a result, consumers are re-embracing the analogue world. Some call it a “digital backlash” while others believe it to be the next iteration of retro cool. A number of Kickstarter projects were circulating analogue projects like Lomography and Projecteo. One panel in particular focused on Creating Digital Keepsakes in an Analogue World. Another, hosted by JWT highlighted a recent study, Embracing Analogue. While it’s unlikely we’ll experience a full-fledged backlash, brands need to think about complimenting their digital experiences with the tangible to remain relevant. 16
  17. 17. POV: 2013 Sasha Hudson, Ollie Killick & David Norris Twitter to Launch Music Service In January, Twitter launched Vine, a six second (or less) video sharing service. Now it is set to launch a music service. eight out of ten of the Implications This is a highly competitive market. Facebook recently launched its OpenGraph technology which enables services like Spotify and SoundCloud to heavily appear in news feeds, and Google has confirmed that it is looking to introduce a music subscription service of its own. Spotify recently hit six million Premium subscriptions, and there are many other major global music streaming services such as Deezer, Napster, rara.com, Music Unlimited and Xbox Music. It is not yet known whether Twitter will charge subscription fees to use the app, but it has been refining its commercial model recently, with revenues forecast to increase to $1 Billion by 2014; 58% of this from mobile. Vine videos have enriched the promoted tweet product – brands like GE and Gap have been using Vines within promoted tweets. It’s possible that Twitter will encourage the music industry to use Twitter Music in a similar way to promote new tracks, or it could even look to generate revenue from paid downloads or commissions on ticket sales. most followed accounts are musicians. Summary BACKGROUND Twitter recently acquired We Are Hunted, a software company whose search algorithms are built to aggregate popular new music. We Are Hunted’s music discovery service was accessible by web, iOS, Android and Spotify apps. Twitter is using this software to develop its own standalone music discovery and streaming service and will leverage its existing relationship with SoundCloud for the streaming element. The service will be called Twitter Music and will be launched as a standalone iOS app very soon. When you load up the app for the first time, Twitter Music will suggest that you sign in using your Twitter account – your experience will then be personalised based on your Twitter social graph. It’s rumoured that there will be four main tabs in the app: ‘Suggested’ will recommend tracks for you based on artists you follow and artists other users you follow are following. The hashtag ‘#NowFollowing’ will aggregate tracks tweeted by people you follow when they use it – meaning you can recommend tracks easily to your social graph. ‘Popular’ will bring in songs that are trending, and ‘Emerging’ which will bring in tracks from up-and-coming artists. If you want to learn more about an artist, you’ll be able to click through to a short bio and play other tracks on their SoundCloud account. You’ll also be able to follow artists on Twitter directly from the app. eight out of ten of the most followed accounts are musicians. As a brand this will no doubt open up sponsorship integration opportunities This move by Twitter highlights another example of a world where music and media are converging. Leveraging Twitter functionality and scale with SoundCloud for content should – in theory – make both media brands stronger and enhance the experience for the end user. The ambition to keep people in Twitter makes perfect sense and harnessing content (Twitter Cards, Vine and now Twitter Music) will do that. Twitter Music looks like the focus will be more fun (than serious muso) where you can easily find a new tune, and for people to dip in and out. The company is looking to integrate more content into its platform to raise engagement. As a brand this will no doubt open up sponsorship integration opportunities – Twitter Music Charts, etc. - but also the ability to use SoundCloud with scale – which for the right brand and brief when combined with this functionality could be very powerful. 17
  18. 18. POV: 2013 Implications ciaran norris facebook home After years of rumour last week finally saw the release of the Facebook phone. BACKGROUND Facebook’s Mark Zuckerberg has claimed that Home will help sell more Android phones. However the fact that it was launched on a phone retailing at $99 suggests that in fact Facebook is using Android’s mass-market dominance as a Trojan Horse; this isn’t something aimed at the early-adopters – it’s for those for whom Facebook essentially is the Internet. This is a clear play by Facebook to try to replicate its dominance of the desktop web on mobile devices – many put its disappointing IPO down to the fact that it wasn’t adapting to mobile quickly enough. It’s certainly an ambitious and aggressive move, potentially building up its already massive data pools, and enabling it to create truly personalised ad opportunities with mobility at their core. Some have suggested that Apple will be forced to start to mimic the flexibility of the Android platform in order to allow people to download Facebook Home, but it could equally have the entirely opposite effect. The recent move to align Android and Chrome under one team, following the departure of founder Andy Rubin, could have many reasons. But one could be that it is starting to become hard to see how Android materially benefits Google’s bottom line. Samsung & Amazon barely mention Android anymore, China’s fastest growing mobile company uses it, yet most of Google’s services are banned or limited in that country, and now one of Google’s biggest competitors has launched a product that could well cut Google’s products out of the picture. Except it wasn’t a phone at all, rather a phone running Facebook Home, an application which changes many aspects of how the phone operates. Rather than get involved in a lengthy, and costly manufacturing and development battle with Apple, Android and all of the device manufacturers, Facebook has decided to take a short-cut in its attempt to rule the mobile web. The elements of Home that have generated the most comment are the Cover Feed and Chat Heads. The first swaps out a phone’s lock and home screens for live versions of the owner’s News Feed. Chat Heads allows people to use Facebook’s messaging services even when using another app. Both of these highlight how tightly integrated Facebook is in the new system, replacing or overlaying on top of previously core functions. Whilst the new system was previewed on a mid-priced new HTC Android phone, it will be released through Google Play and available on a wider variety of handsets overtime. Facebook clearly has designs on the hundreds of millions of Android handsets worldwide. There will be no Apple equivalent, as Apple would never allow such tinkering with its core product. Summary this isn’t something aimed at the earlyadopters – it’s for those for whom Facebook essentially is the Internet. Facebook’s mobile strategy is now clear to see: try to dominate the platforms from within, rather than replicate them. For advertisers who have invested heavily in Facebook up till now, this could well offer opportunities to start to take their messages to every-day phone-owners as they go about their dayto-day. But equally Facebook’s ambitious attempt to takeover the main parts of the mobile experience could well back-fire, whether due to consumer concerns about the amount of data Facebook will now have access to, or because Google decides it is no longer interested in building its competitors’ businesses as well as its own. 18
  19. 19. POV: 2013 Ollie Killick & Jesse Wolfersberger Twitter Brings Keyword Targeting to Social Twitter has announced a significant enhancement to The process works in a similar way to paid search. Advertisers create a keyword list, set a bid, and when a user tweets or interacts with a tweet that uses words that match something in the keyword list, they are served an ad. Unlike search, the user is not served the ad immediately; instead, it will show up in the user’s timeline within the next several minutes. For example, Bob sends a tweet about looking for a new computer. If Dell has the words “new computer” in its keyword list, the next time Bob refreshes his timeline he gets served a Promoted Tweet from Dell. Further, if Bob does not send a tweet, but instead interacts (replies, favorites or retweets) with someone else’s tweet that references a “new computer,” he could also be served a Dell Promoted Tweet. Twitter will launch keyword targeting with two types of keyword matching: • Phrase Targeting – A series of words in the exact order, with no words in between. • Unordered Match – A series of words that appear in any order, with words in between. its Promoted Tweets. BACKGROUND “Keyword targeting in timeline” allows brands to show ads to users who have tweeted or interacted with a tweet that contains specific words and phrases. This new functionality gives advertisers a paid search style model within Twitter similar to Google’s. These targeting options are not as robust as Google or Bing, but they are a good first step These targeting options are not as robust as Google or Bing, but they are a good first step. Twitter will offer some keyword tools at launch to help marketers with word tenses and plurals. Also, bulk keyword management is supported immediately. Users of Buddy Media and SHIFT will see the changes incorporated into both technologies within the week. The biggest issue with match types is the lack of negative keywords. In SEM, negative keywords keep brands from wasting spend on irrelevant queries or being associated with unfavorable keywords. In social, there is an additional use: sentiment. Twitter will use an algorithm to help identify negative sentiment within a tweet, but language interpretation can be extremely hard for an algorithm, particularly when hashtags are involved. It is easy to see how an algorithm could miss the nuance of a tweet such as: “Can’t wait to eat at McDonald’s again! #notreally #neveragain.” The addition of negative keywords should help to ease these concerns, but there may never be a 100% accurate sentiment solution. keyword targeting in timeline is a win for marketers. Implications Keyword targeting in timeline is a smart move by Twitter that will further enhance the appeal of Promoted Tweets. Performance remains to be seen, but, in theory, keyword targeting will be a large boost to the efficiency of Promoted Tweets. Twitter is now a “pull marketing” platform where the user first expresses intent. Maybe most exciting, marketers can still make use of three targeting options – location, device and gender – in conjunction with keyword targeting, this gives a great level of relevance. The enhancement also allows for scale and speed of what was once a very manual process – responding directly to Tweets. It will allow marketers to have larger keyword lists and to serve ads to users within minutes of their tweet. Summary Even with concerns about match types taken into account, keyword targeting in timeline is a win for marketers. Keyword targeting in timeline will allow advertisers to quickly respond to users whilst the interest is still there, and will prove especially valuable in when used in conjunction with Twitter’s other targeting tools. 19
  20. 20. POV: 2013 Implications Sasha Hudson Twitter Launches Music Service UPDATE On 18th April 2013 Twitter launched its much anticipated stand-alone, free ‘Twitter #music’ service, either on music. twitter.com or a downloadable app from the App Store Twitter’s move into the music world could be part of its attempt to reposition itself as an entertainment online hub, according to reports. It is moving from short snippets of content (the maximum of 140 characters in a tweet or Vine’s six seconds of video), which allows it to compete with Facebook and its multimedia social network that has been in progress over the past two years. Furthermore, the unique feature of finding new tracks and emerging artists separates Twitter from the competition; it is not a free music streaming service, but a discovery service. Since the launch there have been mixed reviews of the service with music analysts debating whether it is enough to make users choose Twitter over Facebook, and how much value it adds onto the already existing platform. Twitter works with iTunes, although Twitter #music directs listeners to streaming services rather than to Apple’s iTunes to buy songs, potentially causing problems. In addition, U.S. streaming service Pandora is not yet one of Twitter #music’s partners. Right now there are no advertisements featured on either the website or the app, although it can be assumed that this will follow to create a better marketing platform, enabling brands to tap into targeted audiences. Until then, the platform can an informer on what’s happening in social media surrounding music and platform a way for potential adaptive marketing and to encourage credibility. Summary BACKGROUND On 18th April 2013 Twitter launched its much anticipated stand-alone, free ‘Twitter #music’ service, either on music.twitter. com or a downloadable app from the App Store. The service has been created to help people find music on Twitter, based on the artists they follow or from across the network, by using existing user-generated Twitter activity (such as Tweets and other engagement) to spread the most popular singles and emerging artists. The app currently uses three sources: Spotify, iTunes and Rdio, although this is expected to expand in the near future. Users will only hear previews in iTunes, yet those with a Spotify or Rdio account can log on to hear the full track. #NowPlaying will show users all the songs being tweeted by musicians they follow, whether they are famous or not. You can discover more about artists by finding and following them, uncovering who they follow and share tracks as you listen to them, all of which will ultimately lead to more music discovery. As expected, Twitter #music encourages instant sharing, therefore users can tweet what they are listening to directly from the platform. The service is available on the #music site or in app format, on Apple iPhone and iPad devices in the US, Canada, UK, Ireland, Australia and New Zealand. Along with the expected launch in other markets, it is also expected an Android version will follow soon. Twitter offering a music service is a ‘sound’ move. More than half of all users on Twitter follow a musician and eight out of the top 10 most followed people are musical artists. People share and discover music all the time, Twitter #music just makes this easier. It is also a useful platform for the artists to engage with their fans and to encourage recognition for new, emerging artists. However, it can only feature 30-second snippets. Users then have to transfer to Spotify or Rdio to listen to the full-track. So, expect to hear a boom in 30-second (or less) tracks, and reworked edits. This adds some value to Twitter, consumers will play with it and it’ll go down well with the music industry – they can push their music as well as their artists. Many companies have tried and failed to tap into the social music industry. An example could be Apple’s Ping service, which was built into the iTunes software that promoted music it thought users may like. Apple closed it after two years. Let’s see if Twitter has got it right. We think this is a step in the right direction. 20
  21. 21. POV: 2013 Marta Mattioli, Ruth Corrigan, Eridani Baker Facebook’s New Video Ads online video advertising is growing globally, many platforms are looking to capitalise on this opportunity BACKGROUND Among these platforms, Facebook is looking to launch a new video ad format later on this summer. There has been no official announcement as yet, but it is rumoured that the video ads will appear in the newsfeed and auto-play without sound. It will then be possible to activate the audio and the video will restart from the beginning. Each video will last a maximum of 15 seconds, suggesting Facebook has taken note of Vine’s offering – which is limited to a 6 second video format. and to capture some share of TV advertising revenue. A small number of big brands will be part of the initial trials, including Unilever, Nestlé, Ford, Diageo, American Express and Coca-Cola. To create more impact (at least at the beginning) users will only see video content from one of these advertisers in any one day. The ads will be bought on a cost per thousand basis with rates predicted to be in the low $20s, a cost per engagement model is not currently being considered. it is rumoured that the video ads will appear in the newsfeed and autoplay without sound Each video will last a maximum of 15 seconds, suggesting Facebook has taken note of Vine’s offering Implications Facebook has up to 70 different ad types already, so what will make this new format stand out from the rest? It allows Facebook to tap into the rapidly expanding online video advertising market - 41% growth Y.O.Y, US 2012. The new ads are expected to generate up to US $1.5m new daily revenue and up to $4m per day by the end of the year. Some brands, such as Unilever and Volvo, have already conducted research into how TV and social video can link together to drive lifts in brand awareness and ad recall. Facebook’s new video format will offer a new source of consumer data for advertisers that can feed into such research. The customary consumer uproar that accompanies the launch of ad products on social platforms will undoubtedly ensue; the auto-play feature is likely to be the most talked-about change. There is also the possibility that users could learn to ignore the ads as they will be easily identifiable as ads. This problem could be avoided if Facebook makes the ads work in the same way as sponsored stories, as users are more likely to watch a video which has been validated by their friends first. Summary Consumers naturally share video on Facebook, so the introduction of video ads in the newsfeed seems to be a natural addition to the social giant’s large bank of ad formats. There is no mention of whether this video format will extend beyond desktop, but with large volumes of people now watching video on their mobile and Facebook beginning to prove its revenue potential through the channel (30% of its revenue in Q1 this year was on mobile), it is likely to be in the plan. 21
  22. 22. POV: 2013 Norm Johnston taking a bite out of apple Implications Apple’s CEO Tim Cook hinted this week that Apple has some big plans for Q3 and a solid line-up for 2014. Apple’s relative silence during its recent stock price plummet may in fact indicate a quiet confidence in its future product releases. Of course it doesn’t hurt to have a massive cash reserve of $137bn to weather the storm. The key question is what are those Q3 and 2014 plans? Apple has recently been under intense pressure as competitors, particularly Google and Samsung, continue to gain market share by introducing new and highly competitive products. BACKGROUND As a result Apple’s share price has dropped and its stock market value has tumbled by 40%. Has the post-Job’s Apple finally lost its shine? Given that the early adoption phase for smartphone, tablets, and phablets is now over in many markets, it should come as no surprise that Google’s Android OS is gaining share as HTC, LG, Motorola and others battle over the mass market audience, which has never been Apple’s natural customer base. Apple’s business has been built on a disruptive smaller volume, larger value approach compared to Google’s larger volume, lower margin formula. Apple’s strategy is threefold: 1) create brilliant and connected products in a largely closed ecosystem; 2) appeal to early adopters and latent followers with enough cash to pay for expensive devices; 3) squeeze incremental revenue through services, applications, and to a lesser extent advertising. To put things in perspective, consider that Apple makes a $368 profit for each iPhone while Google makes roughly $10 per phone. Furthermore, Apple makes 30% from sales of iTunes applications compared to Google’s measly 5%. Sustaining such margins was always going to be difficult; Apple’s most recent Q2 2013 results indicate that even with decent sales of iPhone and iPads, the company suffered a Y.O.Y. quarterly drop in net profit to $9.5bn compared with $11.6bn last year. An Apple watch would capitalise on the recent wearable tech craze Speculation is rife that Apple, while still iterating and improving on its existing product portfolio, has moved on to the next big thing and is quietly preparing to disrupt yet another industry. Pundits have long speculated that Apple is due to launch its own TV set, a highly cluttered and competitive market with tough margins and all kinds of broadcasting and content legal challenges. However, the TV set remains the one screen in a multi-screen ecosystem where Apple doesn’t fully play (note: the current Apple TV product has an Apple EPG and streaming ability to your existing TV). Don’t bet against Apple redefining the TV experience. A second area of speculation is an iWatch wristband; the long-mooted Dick Tracey phone watch may actually be functioning somewhere in an Apple lab. An Apple watch would capitalise on the recent wearable tech craze (Jawbone, Nike Fuelband, Google Glass) and could port iTunes content, Siri, Facetime, and of course your phone to your wrist. It’s the type of disruptive, jaw-dropping product Steve Jobs would have loved. On the other hand, Apple may be preparing to simply improve its iOS experience, and unleash new, graphene-powered, memory-boosted iPhones and iPads. With Samsung’s new Galaxy S4 giving Apple a run for its money, an upgrade beyond recent releases may be necessary to defend its share. Summary Apple has excelled in disrupting and defining industries with its technology. CEO Tim Cook has hinted something is on the way; Steve Jobs may have planned a few more surprises for us. Stay tuned. 22
  23. 23. POV: 2013 Ciaran Norris WHERE NEXT FOR YAHOO? Many felt that Yahoo’s decision to appoint ex-Googler Marissa Meyer would result in a surge in its fortunes. BACKGROUND Things have certainly started looking up at Yahoo, with the company making a number of acquisitions, releasing improved earnings, making content announcements, and generally making more noise in the market than it has done for some time. But does this mean things have really turned around? The reborn flickr is, Implications once again, a truly Yahoo is still a massive company, and one with millions of loyal users around the great product. But world: its Mail & News services are still the dominant players in their sectors in it may just have to many markets. But in a world increasingly defined by search, social, video, data make do with playing and mobile Yahoo has struggled to provide a USP other than its scale and legacy. There is no doubt that Meyer has brought a much needed focus to the company, second fiddle to and if nothing else, has managed to create good news stories about the company Instagram – important in an industry that often works from feeling as opposed to logic Since coming on board, Meyer has signalled a renewed focus on product. Flickr, which probably should have seen success on the scale of Facebook & Instagram, but had been unloved for years, has been given new focus and a sharp new app. Ditto weather. The start-up news aggregator Summly was snapped up for $30 million and, within weeks, some of its features were baked into Yahoo’s main apps. On the media side, Yahoo hasn’t abandoned its plans to be a media and a tech company, announcing a raft of new exclusive programming, as well as deals with ABC and Saturday Night Live to replay their content across its properties. At the same time, Yahoo has announced new ‘native’ ads that will be matched to the device and content type the audience is consuming. And all of these would appear to be feeding into results, with the share price up 50% since Meyer joined. But much of this financial success is due to the fact that Yahoo has a 24% stake in the Chinese company Alibaba, as well as 33% of Yahoo Japan, which is in a much better place than the core business, whilst the inability to finalise a deal to buy video site Dailymotion (though the blame for that lies with the French government) shows that it’s not all going to be plain sailing. As one analyst put it, “If you own Yahoo (stock) for Alibaba, you’re doing just great…(but) if you own it for the core business, you’ve got some speed bumps.” But the question is whether she will ever be able to do enough to truly turn the company around and push it back to the top of the pecking order. Metacafe would have been a great opportunity, and it is a great shame that the deal couldn’t be done. The reborn flickr is, once again, a truly great product. But it may just have to make do with playing second fiddle to Instagram, which essentially stole the market flickr created. And as for search, the alliance with Bing hasn’t provided much of use to either party as yet, with most of Bing’s gains in the US coming at its partner’s expense. It may well be that Yahoo is just going to have to get used to being a very good second or third best. As display revenues for its core brand are currently going backward, that would actually be a pretty good outcome, though it may not be enough to satisfy Wall Street. Summary Whilst nowhere near the company it once was, Yahoo is definitely looking better than it has done in some time. But in a world where Google, Amazon, Apple and Facebook are continually developing their software, hardware and services, Yahoo is unlikely to ever scale such heights again. The media world needs diversity, so we should all hope for Yahoo’s resurgence, even if we should accept stabilisation. 23
  24. 24. POV: 2013 DETAILS Brands that have an official affiliation with Manchester United would have a legitimate reason to join the Twitter conversation, demonstrating their partnership with the club and providing an authoritative opinion. Some sponsors decided against activating in the social space, which is no criticism. Given the huge interest on Twitter, perhaps some brands felt they that would refrain from commenting as they wouldn’t be adding value to the conversation. However, those that did activate lacked the imagination required to cut through the clutter – SHARP mentioned an unofficial Manchester United twitter account in their message, whilst Thomas Cook’s #SirFergieHoliday didn’t capture the public’s imagination (4 RTs). Sam Reid Ferguson Retired The End of an Era: Sir Alex Ferguson’s retirement and how Twitter, the real time information network, captured the moment #ThankYouSirAlex BACKGROUND At 9:17am on Wednesday 8th May, Manchester United’s Press Office (@ManUtd_PO) sent out a short tweet explaining that Sir Alex Ferguson had retired as Manchester United manager after 26 and a half years, accompanied with #ThankYouSirAlex. Within the hour the tweet had been repeated 18,000 times and there were 1.4m mentions of the story on Twitter, taking eight of the 10 UK trending topic spots, and four of the 10 worldwide trends. In an era where brands want, and need, to be part of the consumer conversation, this was the perfect opportunity to capture the moment. Sport is a live show, so brands must be prepared to activate at a moment’s notice. Brands not officially associated with Manchester United were free to provide the type of reactive marketing that this story allowed. Nando’s kept their Manchester restaurants open for an extra five minutes yesterday evening, calling it #NandosFergieTime. The announcement garnered in excess of 16,000 RTs (about half the number @ ManUtd_PO received), whilst mentions praised and endorsed the restaurant chain; there has since been subsequent national PR from the activity Implications Ever since Oreo released details of its ‘Dunk in the Dark’ activation, explaining that the brand had a whole host of creatives and clients in a room watching the Super Bowl, the emphasis for brands has been how to maximise the ‘in the moment’ activity. Brands that simply prepare and activate content calendars planned weeks in advance will quickly start to fall behind in social, and the emphasis will be on immediate response. Sport is a live show, so brands must be prepared to activate at a moment’s notice. Summary The activations by Nando’s and Paddy Power just go to show that, given the right messaging and adding value to the conversation, timing is everything. Sir Alex Ferguson’s retirement cannot be compared to Oreo’s Super Bowl activity (a planned event), but it is just another example that social media, and especially Twitter, is the perfect environment in which brands should play if they wish to join the consumer conversation – however it is key that they activate in a way that cuts through the clutter and captures the moment. Paddy Power was at its best on Twitter, releasing light-hearted messages as the day unfolded, intertwined of course with its Next Manager specials. The activation drove over 1,000 new followers on the day, along with sizeable traffic to site. Brands not officially associated with Manchester United were free to provide the type of reactive marketing that this story allowed. 24
  25. 25. POV: 2013 Implications Amazon is doing two good things here, encouraging consumers to hit the buy button on new apps, games, and in-app items, and with the likely increase in revenue available, encouraging app developers to develop for the Amazon Kindle platform. Up to now iPad owners, being less price sensitive, have proven most receptive to spending money on, and in, apps. Kindle and Android owners have proven less so, although this is changing fast. Revenue per Android user is 2.5 times more than it was a year ago (Google IO conference May 2013). Jay Bryan & Massimo Sparvoli Amazon Coins Following a recent announcement from Amazon, every Kindle Fire owner in the U.S. will find $5 worth of free Amazon Coins deposited directly into their Amazon account. BACKGROUND They will also receive a discount of 10% on further Coin purchases. Tens of millions of dollars of Amazon Coins will be in customers’ accounts to spend on new apps and games, or to purchase in-app items, such as recipes in iCookbook, song collections in SongPop or mighty falcon bundles in Angry Birds Star Wars. Any brand with a tablet strategy, along with iPad and Android, should now also incorporate Kindle. This investment in fostering use of the Kindle tablet platform is further proof that Amazon gets it. Amazon Coins is a great way to promote monetisation and use of the Kindle platform. It also appears to be less complicated than Microsoft’s points system on Xbox marketplace. Amazon has confirmed that it will continue to add more ways to earn and spend Coins on a wider range of content and activities with ebook purchases expected. This investment in fostering use of the Kindle tablet platform is further proof that Amazon gets it. Amazon and eBay are the e-commerce kings and, by operating on razor thin margins, are not likely to get knocked off their perch or suffer from eventual margin decline that other tech players are currently suffering from. Amazon invented the recommendation engine, which spawned content and music discovery platforms and is now embedding itself into content delivery with Kindle tablets. The Kindle Fire is with us for the long run. Any brand with a tablet strategy, along with iPad and Android, should now also incorporate Kindle. Amazon Coins could also be used as an encouragement to consume branded content; particularly brands with young audiences that are into social gaming (think FMCG, Mobile sectors). It will also become interesting for brands with more mature and affluent audiences once/ if Amazon Coins are enabled for ebook purchases. Summary Additional opportunities may be found by brands using Coins for incentives: “Get the new Smartphone with 5,000 Amazon Coins preloaded” or for messaging in social channels to drive and foster engagement: “Do you have an Amazon account? Participate in our competition / like on Facebook / re-tweet on Twitter and get 100 Coins for free”. Let’s be clear here, Amazon Coins is not a virtual currency like Bitcoin, but more like Facebook’s Credits, Tencent’s QQ Coins, or Linden dollars. Coins are not transferable among people, nor are they exchangeable for real currency. Nevertheless, Amazon Coins is a smart way to nudge Kindle Fire users to stay within the Amazon content eco system. Marketers should include Kindle in their tablet strategy and utilise Amazon Coins where appropriate. 25
  26. 26. Implications Ciaran Norris YAHOO BUYS TUMBLR. As part of an ongoing strategy to revitalise the once dominant internet brand, Yahoo has bought the popular social-blogging platform Tumblr for $1.1 billion in cash. BACKGROUND It is the biggest move yet by the CEO, Marissa Mayer, following a series of small to mid-sized acquisitions, primarily of mobile apps. It is hoped that Tumblr, which has a relatively young audience, will provide a boost to Yahoo, which has struggled to keep up with Google and Facebook in recent years. It is hoped that Tumblr, which has a relatively young audience, will provide a boost to Yahoo Mayer has made a series of bold moves since joining Yahoo in July 2012, but this is undoubtedly the biggest. Whilst many will compare it to Facebook’s purchase of Instagram, it differs in one big way; Facebook used stock for a large chunk of its purchase (so ended up paying less than $1 billion after its IPO) whereas Yahoo is using none. Yahoo also appears to have less cash in the bank than Facebook, so it’s a bigger bet in terms of the potential consequences. It also differs in that Tumblr had already started to monetise its audience, as opposed to Instagram, which still has no advertising. But Tumblr’s ad business is still very young, generating just $13 million in 2012, which is hardly surprising seeing as Tumblr’s CEO David Karp, who will retain control, said in 2010 of advertising “[it] really turns our stomachs.” Yahoo and Mayer have already stated that they expect to ramp up monetisation, but have promised not to ‘screw up’ the blogging service. The question is whether Yahoo will be able to do one without the other. Whilst the purchase is being described as brave, it could equally be suggested that it’s a sign of desperation. Yahoo has essentially given up on search and whilst it has belatedly thrown resources at flickr, it’s hard not to feel it missed its real chance with social when it originally bought flickr and del.icio.us (and failed to convince a young Mark Zuckerberg to sell Facebook). It will remain to be seen whether its recent splurge on mobile apps will deliver any real results or whether Yahoo should have simply doubled-down on its Asian investments, which are currently paying many of the bills. Tumblr may well have a young audience that many advertisers crave, but it is also largely made up of user-generated content, as well as a lot of borderline or straight-up pornography, both of which make advertisers nervous. Young audiences also tend to be fickle, and there is already a lot of noise about users abandoning Tumblr now that it has been bought by the man, or the woman, in Mayer’s case. If Mayer can convince advertisers that Tumblr has a real place on most brands’ media schedules, she will definitely have earned her keep. Summary Predictions of what will happen when it comes to internet buy-outs and mergers are notoriously unreliable, but a few things seem clear about this deal. Yahoo will need to find a way to keep Tumblr’s users, and its CEO/co-founder happy, whilst also managing to make it a more advertiser friendly property. If Mayer can do that, then Yahoo may well have its very own YouTube, which Google bought for a similar amount back in 2006. But it’s equally possible, if not more likely, that with its fickle audience and hard to monetise content, Tumblr will instead end up being another bebo, or Geocities 2.0. 26
  27. 27. POV: 2013 Implications Sam Kerr Microsoft and the Xbox One Microsoft has finally revealed its contender in the upcoming console war, the Xbox One. Microsoft is actively courting publishers and advertisers with the Xbox One, in stark contrast with Sony’s approach of courting developers and gamers. Microsoft will be looking to replace set-top boxes and PVRs and it’s likely that the console will be packaged together with entertainment provider packages, opening it up to a much larger market of non-gamers. Alongside the Kinect 2.0, which offers more opportunities for innovative campaigns, from gesture and voice control to the bio-metric feedback of heart rate and skin temperature monitoring from the camera itself, the Xbox One is an interesting play for advertisers. As always, Microsoft has taken a very US-centric approach at the outset, with many of the new features geared towards live TV viewing and sports content. Whilst this may be a recipe for success in North America, it will need a wider variety of market-relevant content and partners in the rest of the world in order to remain attractive. Also, in an age of time-shifted viewing, streaming media and multiple screened mobile devices, is Microsoft offering something truly revolutionary? Do we as consumers want to make Skype calls from our TVs rather than our tablets or mobiles? Summary BACKGROUND Live-streaming from its headquarters in Redmond, Microsoft has taken a very different approach than Sony in its message, with a strong focus on its credentials as a multimedia entertainment hub, but this has received mixed feelings from the press, developers and fans alike. Microsoft is aiming its hardware to be an all-in-one hub of the living-room entertainment experience. Microsoft is aiming its hardware to be an all-in-one hub of the living-room entertainment experience. The Xbox One is designed from the ground up to seamlessly switch between games, live TV, and films at a press of a button or a wave of your hand. Packaged together with the Kinect 2.0, Microsoft has ramped up the functionality of voice control and weaved it throughout the whole Xbox experience. This makes it a very powerful tool once you throw Skype video calling, Smartglass and its new multi-tasking capability, Snap Mode, into the mix, enabling users to second-screen on their main screen. Live TV played a big part in the reveal, as Microsoft demonstrated the Xbox One’s ability to be integrated with live sports, giving real-time data on players and even updating fantasy sports leagues. However, outside of the expected parade of several large-scale game franchises (Madden, FIFA, Call of Duty), very little was actually said on games (declining to even show any live gameplay on stage) as Microsoft looks to this year’s E3 to finish the second half of its marketing message. Sony and Microsoft have two diametrically opposed philosophies. The Sony PS4 is geared towards gamers, with strong support for independent titles, usergenerated content driven features and a more global approach, all thanks to a singular focus on gaming. The Microsoft Xbox One is instead aiming for a much wider audience, positioning as a big and bold multimedia hub that only just does everything, but runs the risk of having many of its new core features only be relevant to a smaller number of markets at launch. However, Microsoft is playing a bigger game and instead of viewing Sony and Nintendo as its long-term rivals, Microsoft is looking beyond gaming to challenge Apple, Google and PVR suppliers over control of the TV and the lucrative advertising dollars that come with it. One big trend to take note of is that we’re seeing the big console manufacturers moving further towards a purely service-based business model. This is likely to be the penultimate console generation before the big three stop producing dedicated hardware and focus instead on providing services across publisher agnostic hardware. 27
  28. 28. POV: 2013 Implications Vicki Watson Apple iOS The debut of iOS 7 is an important milestone for Apple BACKGROUND Six years into the iPhone and five years into the App Store, the smartphone landscape has changed and Apple, for the first time, faces real competition from Samsung and the domination of Android in the market. The new iOS has received mixed reviews from the tech world, the press and die-hard Apple fans, not to mention ruffling the feathers of the music streaming world with the announcement of iRadio. iRadio gives a Geniuslike experience to the entire 26-million title iTunes catalogue. Apple has flattened the interface, taken away the quirky faux wood and leather icons, and made a concerted effort to not waste space or time by having greater synergy between hardware and software design. Multitasking, a Control Centre, improved Safari functions, Camera and Photo upgrades and platform integration are just a few of the developments. The biggest however is the introduction of iRadio, which gives a Genius-like experience to the entire 26-million title iTunes catalogue. You can see the full list of songs on each station by clicking history, with purchase and preview buttons built in to send you to the iTunes store. iTunes Match users will get an ad-free experience and anyone without iTunes Match will be able to use the app for free with a few audio and text ads. Other developments included: iOS7 enabling you to use an HDTV as a second display using Apple TV and AirPlay; Siri given a new look, with a new voice and in a step away from Google, iOS7 will now pull in data from Twitter, Wikipedia and Bing. Apple’s announcement will have far reaching implications for social networking, consumers and game and app developers. Photos and videos are what people want to engage with on social networks, (e.g. rapid rise in Vine), and Apple has put photos in the centre of the new iOS. With the ability to create a shared photo stream, the iOS platform becomes like a social network itself. Twitter is more deeply integrated in the system, where shared links in the safari browser will let users see all the URLs in their twitter timelines. The well-known security barriers surrounding social login are reduced with new iCloud Keychain, which stores information on iCloud and then syncs across trusted iOS based devices. As for the new Safari web browser which unifies Google search and your own search history, we can expect to see an impact on mobile search and display advertising. Perhaps the new fullscreen look could increase click-through rates? From a music standpoint, Spotify (and Pandora in the US) have reason to be concerned about the new streaming music service, which enables users to create custom radio stations while discovering new music and integrating with social networks. In the gaming world, implications are equally as big. For the first time since 2008, Apple is removing barriers which have previously stopped third party game controllers from gaining popularity by opening up iOS to them, enabling console-like gaming experiences to be powered by its mobile devices. With all of this, who’s to say that Apple won’t next march into the home console market? Given Apple’s dominance of handheld gaming and the fact that the new 16GB iPod Touch and Apple TV are growing in popularity, Sony and Microsoft could have more than just each other to worry about. Definitely a big watch out for our gaming client’s future plans. Finally, due to being able to have multiple apps opened at the same time, each individual app may not have the user’s undivided attention. With the ability to create a shared photo stream, the iOS platform becomes like a social network itself. The new iOS has received mixed reviews from the tech world, the press and die-hard Apple fans, we’re seeing the big console manufacturers moving further towards a purely service based business model. Summary Many of the features are geared towards making the smartphone the essential device with which you cannot leave home without- your keys, your phone, your wallet, your map. Apple is ready to disrupt businesses again and established platforms and businesses like Spotify and Microsoft need to keep innovating to avoid Apple swooping in and stealing their lunch. 28
  29. 29. POV: 2013 BACKGROUND eriadani baker maxine hamilton Facebook announced last week that it will be cutting back its ad products over the next six months, and Sponsored Stories, accounting for over half of the ad types available, will be among the first to go. Advertisers might be surprised that Sponsored Stories will be disappearing as they have been proven to have higher engagement rates than regular Facebook ads. However, rather than completely disappearing, Facebook will be applying the social context layer that makes Sponsored Stories so successful into all of its ad types, creating a simpler product offering designed to deliver business results. laura murphy Facebook Simplifies Ad Offering Facebook has become a complex ecosystem for advertisers to navigate due to the plethora of ad units available, however that’s all about to change. The overall idea with the changes is to give brands fewer, but better, options when it comes to advertising on Facebook. A lot of the changes are based on feedback received from marketers about Facebook’s ad products, where simplification was one of biggest issues raised. Also facing the chopping block is Facebook Offers, an ad product that allows brands to post discounts and offers to their customers on their Facebook Page. Offers has been usurped by Page Post Link Ads, which has been shown to be more effective for direct response offers. Questions Ads will also become redundant because it is more convenient for brands to ask questions and collect replies via a post’s comment field. the addition of social context to all of Facebook’s ad types will mean that all Facebook ad campaigns should see a boost in engagement. Implications Advertisers will surely welcome the streamlined ad offering from Facebook as an easier way to find and engage with their target audience on the popular social network. Although some brands will be sorry to see Sponsored Stories disappear, the addition of social context to all of Facebook’s ad types will mean that all Facebook ad campaigns should see a boost in engagement. The changes are part of a wider refresh of the News Feed, which will become more visual, less cluttered and provide a seamless experience from desktop to mobile. By Q4 2013, Facebook plans to give all ads on the platform a similar look and feel, which will make it harder for brands to stand out and place a greater importance on brands to build ‘likes’ and adopt robust social posting strategies. The changes will create a better experience for both advertisers and users alike Summary It would seem that Facebook has finally taken a breather from launching new ad products at a breakneck speed and is pausing to take stock of its current situation, which sees brands overwhelmed and struggling to find their way in the complex Facebook advertising ecosystem and users being fed up with a cluttered News Feed. The changes will create a better experience for both the advertisers and users alike, ensuring that Facebook remains the social media destination of choice. 29
  30. 30. POV: 2013 Implications Maxine Hamilton Eridani Baker YouTube One Channel Earlier this year YouTube began the roll out of its new channel design called One Channel. BACKGROUND After an optional adoption period and beta testing, on the 5th of June YouTube switched to a mandatory use of One Channel for all users. The aim in YouTube’s own words is to “evolve from a video-based site to a channels-based site, where subscriptions rule.” One of the main changes is the new dynamic layout making channels look good on any browser used, across all screens and devices, allowing you to customise how to organise your videos and playlist so it fits your audience in the best way. Activities available for the new channel include: Creating a trailer which will only play for new visitors who are not yet subscribed to your channel • YouTube noticed a 20 percent page view increase on channels that had already opted in before the 5th of June. • Channel Art, which makes it possible to create a header ( at 2560 x 1440), to give the channel a visual identity and it also allows you to integrate your social links better than you could before • InVideo Programming in the form of interactive tiles that lead both to your channel (if being watched off channel) and feature a video of your choice making it easier to pull consumers through your brand content • New Social buttons will allow users not only to easily subscribe to your channels it will also allow them to easily connect with your social networks such as Instagram, Facebook and Twitter The trailer activity is a great way to awaken interest in new visitors and win a new subscriber. Because the trailer is only shown for new visitors the trailer should be treated as if it were an ad – keep it short and engaging and have a compelling call to action at the end. The benefits when it comes to users that have already subscribed are that you will be able to easily expose your brand messaging to subscribers at regular intervals and create stronger brand enthusiasts. YouTube subscribers are highly engaged and likely to share content with friends, they are potentially strong brand advocates which is why it is important to try to get users to subscribe. Recent research from YouTube shows that subscribers tend to watch twice as much video as non-subscribers, so having a good video strategy is important to be able to foster real engagement around a brand. The Social buttons which are placed on the channel header give a clear call to action and are aimed at getting viewers to learn more about your brand join and start conversations. In addition to the social buttons you can also add extra links to the header in order to drive traffic to your website or elsewhere. Summary Organising videos and playlists on the channel into ‘sections’ with various layouts to highlight your best content • The new features with One Channel should help advertisers better engage their target customer base by encouraging and emphasising channel subscriptions, allowing advertisers to create a community on YouTube. YouTube noticed a 20-percent page view increase on channels that had already opted in before the 5th of June. One Channel is a good way to get users to become subscribers, which has become more critical than a few years ago. Mainly because people who subscribe to channels on YouTube generally watch more content more often than those who don’t. They are also more likely to be the opinion leaders who informally influence people who surround them to watch the videos too. The new Social buttons will also help to start conversations outside of the channel, allowing brands to build an ongoing relationship with their subscribers. having a good video strategy is important to be able to foster real engagement around a brand. 30