#Gettingmediaright With Millward Brown
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#GettingMediaRight with Millward Brown. Setting the media scene, some thoughts about the future of media and 2016 media predictions by Andrzej.Suski@MillwardBrown.com & South African insights and learnings’ on how to optimize digital video creative and how to maximize media efficiencies through the use of video across multiple screens by Monique.Claassen@MillwardBrown.com
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#Gettingmediaright With Millward Brown
- 2. This presentation focuses on 2 sections: PART 1 (SLIDE 1-30): Setting the media scene, some thoughts about the future of media and 2016 media predictions Presented by: Andrzej.Suski@MillwardBrown.com PART 2 (SLIDE 31-62): South African insights and learnings’ on how to optimize digital video creative and how to maximize media efficiencies through the use of video across multiple screens Presented by: Monique.Claassen@MillwardBrown.com
- 3. PART ONE – SETTING THE MEDIA SCENE, SOME THOUGHTS ABOUT THE FUTURE OF MEDIA AND 2016 PREDICTIONS PRESENTED BY: ANDRZEJ.SUSKI@MILLWARDBROWN.COM
- 4. DIGITAL & MEDIA PREDICTIONS 2016 MARKETING, TECHNOLOGY AND THE EVOLVING MEDIA MIX
- 5. The world is changing fast… 5 FRAGMENTING MEDIA DIGITAL CONTENT SOCIAL MEDIA E-COMMERCE MOBILE CONSUMER GENERATED ADDRESSABILITY
- 7. 40%of campaigns’ impact aresynergy effects
- 9. …makingit look similar is probably current state of play
- 10. Matching strengths to tasks seamlessly is the next step…
- 11. 11 In order to be successful, brands need to create media agnostic ideas that are social at their core.
- 12. The media world is fragmenting but digital and social offer new distribution opportunities 12 EARNEDOWNED Related digital content EARNED Social and media response to the event OWNED Event to capture imagination PAID The impression you want to deliver PAID Amplifies the coverage Maybe shared TRADITIONAL NEW
- 13. 13 • So what are our thoughts for 2016?
- 14. ConnectedTV won’t kill linearTV advertising in 2016 4 Content marketing reaches the C-suite 5 Smart brands will rethink how to create effective mobile ads1 2 3 Brands waste billions by failing to adapt video creative across formats Beyond online and mobile to context- based marketing 6Measurement to reflect the true value of digital
- 15. Beyond online and mobile to context-based marketing In 2016, smart marketers will adopt more sophisticated online and mobile media plans to improve synergies across the overall media mix. #gettingmediaright: understand that online and mobile consist of multiple granular contexts; adapt digital messaging accordingly.
- 16. Breaking down social and mobile silos • The fragmented and competitive social & mobile landscape drives advertising innovation but brings with it inefficiencies & challenges • Develop coordinated strategies across social & mobile platforms and work with these publishers to prove their collective brand value in the overall media mix
- 17. Analogue goes digital • Brands must leverage mobile-enabled connectivity coherently through every aspect of their marketing programs. • To maximize ROI exploit the use of digital technologies to create simple, easy mobile interaction through all touch points. • Give your consumers control of when and how they engage with your brand.
- 18. • Location-based marketing opportunities arepowerful when brands focus on consumers’ interests rather than on their own • Consumers will increasingly expect tobe presented with ads that aremeaningful in the moment; location data willhelp targeting be more accurate than ever. Just be careful not tocreep people out! CONSUMER-FOCUSED LOCATION-BASED MARKETING BLOOMS
- 20. Smartbrandswillrethinkhowtocreateeffectivemobileads Mobile presents a massive opportunity for marketers to reach consumers in exciting new ways, but receptivity and creative challenges lie ahead. #gettingmediaright: as more people spend more time on mobiles, increase spend on polite, skippable contexts and ensure content is tailored to mobiles.
- 22. 22 Even award-winning ads are skipped early on when viewed online …… But if you can hold the viewer’s attention past that point, they’re likely to stay to the end; viewers need to be hooked in the first 5-10 seconds to make them likely to watch the ad in its entirety. Depending on your creative strengths and the intended placement, consider the need to get branding in there early! Weseeasimilar patternofresponseacross most ads – a lot ofdrop-off in thefirstfewseconds and thenstability overthecourse of therestofthead 12.20 seconds ViewerShare(%) 100 0 10 20 30 40 50 60 70 80 90 Averagetimeatwhich adwas skipped
- 23. Brandswastebillionsbyfailingtoadaptvideocreativeacrossformats Brands will invest more heavily in online and especially mobile video advertising in 2016, yet many will fail to adapt their content for different ad formats. #gettingmediaright: adapting video content to different contexts makes people much more receptive.
- 24. 24 Short form video - SIMPLE BUT NOT SIMPLISTIC
- 25. ConnectedTVwon’tkilllinearTVadvertisingin2016 Advertisers are entering an era of precise targeting and subscription-funded viewing platforms. #gettingmediaright: understanding how people adopt and adapt to connected TV will inform future advertising opportunities.
- 26. ContentmarketingreachestheC-suite More brands are becoming content creators. As marketing moves from disruption to attraction, content marketing will move up the corporate agenda in 2016. #gettingmediaright: aim to inspire with tangible, rewarding branded content via trustworthy publisher contexts to ensure ROI despite reaching fewer people.
- 28. The quality of your answers is in direct proportion to the quality of your questions 28
- 29. 29 Base sales are driven by “brand impact” Campaign Total Sales Performance Emotion Popularity Dynamism Difference Value Salience Brand Engagement The Sales Response Effect The Brand Effect Strengthens loyalty of existing users and brings new users into brand Sustained, longer term Immediate, short term Mostly incremental sales to existing users
- 30. RelevantKantar|MillwardBrownsolutions TNS Connected Life, Connected Shopper CrossMedia Brand Lift Insights (inc. programmatic, mobile & Facebook) LinkNow for Digital (inc. YouTube, Facebook, mobile)
- 31. PART TWO – South African insights and learnings’ on how to optimize digital video creative and how to maximize media efficiencies through the use of video across multiple screens PRESENTED BY: MONIQUE.CLAASSEN@MILLWARDBROWN.COM
- 32. The optimal marketing strategy consists of two elements: 32 A media plan which creates the best possible opportunity for consumers to be exposed to your campaign. Maximise reach and frequency, limit wastage and ensure synergies across channels. Stand out creative which makes consumers remember your advertising, and communicates your key messages! 2.1.
- 33. Before we unpack some of the reasons creative power of advertising is crucial to successful campaigns, let’s look at what the inventor of click through rates (Google) have to say about creative power… 33
- 35. If Google are changing their perspective on successful advertising and looking beyond clicks and views, should we not be doing the same? How are you measuring the impact of your creative executions? Here are a few Millward Brown learnings’ on what makes successful video creative. 35
- 36. The biggest contributing factor to a successful video is the CREATIVE impact of the execution
- 37. When looking at the effectiveness of digital video campaigns and hence the objectives behind digital video, we are often told that the core objective was for the ad to “go viral”. Interesting objective…and probably not a good one. WHY? 37
- 38. Less than 1% of online video goes viral 38 Ads 5,000 20,00 0 15,00 0 10,00 0 25,00 0 0 0 20 40 60 80Viewsperweek >1% The proportion of online ads that achieve more than 5,000 views per week on YouTube @MoniqueLeech
- 39. When it comes to the success of iVideo we know that creative strength to video views is key! 39 Base: Videos promoted on Youtube home page 0 1000 2000 3000 5000 4000 2000 1000 3000 4000 5000 VIEWS PER WEEK BY CREATIVE STRENGTH @MoniqueLeech Ads with higher creative cut through (great branding and high levels of engagement – as measured by the Millward Brown LINK framework) tend to have more views than ads with low creative cut through. Optimising your creative cut through is the best way to optimize views! This is true across ALL video viewing platforms.
- 40. We also know that regardless of creative potential, the key to success is to ensure correct media pressure. The difference between executions with (and without) media support is huge. 40 Organic 0 1000 2000 3000 5000 4000 2000 1000 3000 4000 5000 OrganicPaid Paid Videos with average creative strength Videos with high creative strength VIEWS PER WEEK BY CREATIVE STRENGTH (PROMOTED VS UN-PROMOTED) Base: Videos promoted on Youtube home page @MoniqueLeech
- 41. If you do have the right mix of creative cut through and media spend, there is another challenge which needs to be overcome in digital advertising. The skip! 41 @MoniqueLeech
- 42. 42 There are however key reasons South Africans gave for NOT skipping ads. The top being humour – however as not all brands (or ads) can be funny, it is important to take note of the level of category or brand interest a viewer might have. This means context is key! 41 34 32 30 29 29 25 23 22 18 It is funny or humorous It's for a category that I'm interested in It's for a brand that I'm interested in Gives me something in return (coupon, reward points) Something intriguing happens in the first few seconds Is visually appealing or has great design Contains a person or a character that I'm interested in Offers tips or solutions, right from the start Features music that is appealing to me Is something I've seen before and liked GLOBAL AVERAGE Q: Sometimes video ads are shown online and you have the option to skip. What makes you less likely to skip and more likely to pay attention to an ad?ˆ 37 30 29 29 28 25 23 17 24 17 14 13 19 10 8 South African 2015 Adreaction data n=400 LSM 7-10 Aged 16-45 multiscreen users @MoniqueLeech
- 43. Although we have many learnings’ across video platforms and screens, the top creative optimization tips for digital video are as follows (from the Millward Brown LINK database): 1. Intrigue the consumers by starting a story but not telling the whole story 2. Combine digital video with interactive layer to bring branded content to viewers rather than pushing them away with “tap out” features 3. Develop simple and clear messages that cascade cleanly from the mobile video into an interactive layer with further information 4. On mobile, don’t dumb down just because the screen is smaller – build on the connection consumers already have with their mobile devices and aim for a strong emotional response 5. Think about likely viewing scenarios (not just living room but also on-the-go) when deciding on creative and targeting @MoniqueLeech
- 44. LET’S LOOK AT IMPACT. DOES ALL VIDEO PERFORM THE SAME?
- 45. 1.7% 1.5% 1.2% 0.3% 0.3% 0.3% Brand Awareness Message Associations Brand Consideration From our CrossMedia database, we know that TV has (on average) 6X higher impact on core brand metrics than online Video! Based on 294 XM studies, One standard deviation around mean Dec 2015, database findings.45 Average increase in key metrics (TV vs. Digital Video) from 294 multichannel campaigns @MoniqueLeech
- 46. 1.8% 1.4% 1.6%1.4% 1.3% 2.1% Brand Awareness Message Associations Brand Consideration BUT when we even the playing field (in terms of impact per person reached and not just “an average” impact) – the true value of digital video can be seen. Based on 294 XM studies, One standard deviation around mean Dec 2015, database findings.46 Average increase in key metrics (TV vs. Digital Video) from 294 multichannel campaigns IMPACT FROM CHANNEL PER PERSON REACHED Impact is the same when we look at every person exposed to TV vs. digital. Brand consideration is substantially higher for digital video and these measures are likely to grow as digital video grows in our market. @MoniqueLeech
- 47. 47 WHICH VIDEO PLATFORM TO USE DEPENDS ON WHAT YOUR OBJECTIVES ARE… @MoniqueLeech
- 48. Which video to use where does however depend on your objectives! Reach? Incremental reach? Brand Growth? How well you can measure campaign success, depends on how well your objectives are defined! 48 @MoniqueLeech
- 49. Project Scarlet_Proposal_30Oct2015_Final49 LET’S LOOK AT REACH – DEFINED AS THE % OF YOUR TARGET AUDIENCE EXPOSED TO ADVERTISING AT LEAST ONCE @MoniqueLeech
- 50. Our CrossMedia database, shows that TV remains the king of building reach in. So if overall reach is your goal, the channel mix to use is quite clear….BUT… Based on 294 XM studies, One standard deviation around mean Dec 2015, database findings. Range of Reach across 294 multichannel campaigns 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% TV Online Video Radio Newspaper Magazine Online Display Outdoor POS @MoniqueLeech
- 51. 51 IN SOME HARD TO REACH TV DEMOGRAPHICS DIGITAL VIDEO OFFERS UNIQUE OPPORTUNITIES @MoniqueLeech
- 52. 52 If you want to reach large numbers of consumers TV IS THE KING of video (if your objective is reach). TIME SHIFTED VIEWING AND STREAMING PLATFORMS OFFER MORE CHALLENGES FOR ADVERTISERS…
- 53. 53 Limited (or no) advertising opportunities in these channels… @MoniqueLeech
- 54. Digital video adds incremental reach to any media plan, even light video users. Especially mobile video! Tsource: TNS Connected Life 2015 data Q(D4) Time spent on activities by device - Watching videos or TV online (Hour) – base Heavy TV n=339 (w), Light TV n=406 (w), Light Video n=725 (w) 54 0.4 0.3 0.2 0.2 0.9 0.1 0.4 Total Light TV users Light Video users PC/ Laptop Tablet Mobile Time spent on activities by device - Watching videos or TV online – in a typical day (Hour) Includes video on social networks @MoniqueLeech
- 55. Which platform (TV vs. Digital) to invest in, depends on how your audience consumes media across devices (and where the reach overlaps in digital video and traditional video are). This can inform BOTH future media planning and creative development. How well do you understand your audience multi- screening behaviour? 55 @MoniqueLeech
- 56. Different target audiences can create different campaign opportunities: 56 In the first scenario – there is a large overlap in reach between TV and digital video. If the same video is used, campaign frequency will increase. Launching with a different digital video (compared to TV) will allow the brand to maximise campaign communication recall across different elements. In the second scenario – there is very little overlap in potential exposure between TV and digital video. Therefore using digital video in this target market will offer incremental reach. Reach by Media (% of sample exposed to each channel) @MoniqueLeech
- 57. There is also a very tangible cost savings to adding digital video to campaigns (especially if overall reach is the key objective). Whilst not relevant for all demographics, this does hold true for those target audiences which are more difficult to reach through TV alone… AN EXAMPLE OF MEDIA SAVINGS – CROSSMEDIA CASE STUDY 57 @MoniqueLeech
- 58. Digital video can extend campaign reach at a lower overall media cost! In this example the total reach achieved on TV was just over 74%. This cost the brand 21.1million. 20 22171510 Campaign Reach: 74.1% Spend in Millions TV Only Simulation 21.1m CrossMedia FMCG Case Study @MoniqueLeech
- 59. Digital video can extend campaign reach at a lower overall media cost! We then modelled at which point TV and digital video achieved the same reach as TV alone (74.1%). 20 22171510 Campaign Reach: 74.1% Spend in Millions TV Only Simulation 21.1m TV+YouTube Campaign We found that Online Video delivered incremental reach which would have cost far more to replicate through increase TV investment. CrossMedia FMCG Case Study @MoniqueLeech
- 60. Digital video can extend campaign reach at a lower overall media cost! In this example the total reach achieved on TV was just over 74%. This cost the brand 21.1million. We then modelled at which point TV and digital video achieved the same reach as TV alone (74.1%). Including digital video in the campaign, can achieve the same overall reach at 2million less. 20 22171510 Campaign Reach: 74.1% Spend in Millions Actual Campaign (TV and Online Video) Total 19.1m ‘TV Only’ (simulation) Total 21.1m TV Only Simulation 21.1m TV+YouTube Campaign We found that Online Video delivered incremental reach which would have cost far more to replicate through increase TV investment. CrossMedia FMCG Case Study + 2mil @MoniqueLeech
- 61. The following 2 minute video sums up all the key points made today. Although the video is a global representation of the market, the South African results do not differ greatly. For a more in depth report around South African numbers please have a look at the following: http://www.millwardbrown.com/adreaction/video/ 61
Editor's Notes
- Successful marketing is all about delivering the right content to the right person in the right context. As we enter 2016, Millward Brown weighs in on emerging trends ranging from the complexities of consumer journey marketing and the rapidly evolving media mix to content marketing strategy, and challenges in programmatic buying, where there is a content versus context battle underway. We've focused on the growing importance for brands to manage context and content in the year ahead. Marketers, who adopt a planning approach that recognizes media channels as a way of distributing content as opposed to a device or a technology, will have the most success in 2016. While the evolution of new platforms and technologies presents brands with many opportunities, the adoption of these brings a responsibility for advertisers, agencies and media owners to ensure brand building will thrive. We've also addressed declining receptivity to advertising, the risk for brands whose digital content is not well executed, and the marketing wins we will see for those who get it right.
- In 2016, we expect more marketers to leverage the full potential of online and mobile as channels to engage with consumers and drive brand growth. Marketers have realized that digital media offers as much escapism and relaxation as traditional media. The best digital marketers recognize the different contexts in which digital content is consumed. They know that one size fits all media mix planning is no more appropriate within the digital mix than it is across the wider media landscape. Smart marketers will separate social, search, online video, streaming music, gaming and other forms of text and image-based content by the way consumers use them – not by platform. Marketers will differentiate between lean-back activities and more active involvement uses. Today's marketers will take a page from the playbook of the "old media" world and identify the most relevant environments to deliver against brand objectives. They'll assign the digital forms different roles and integrate them with the wider traditional media mix so everything works synergistically – maximizing the impact of marketing on brand performance.
- Social and mobile media are hardly “new” media in 2015. But even as the brand dollars flow in more consistently and in greater volume, marketers are spending energy developing siloed strategies for each platform. These media have yet to achieve the sophisticated measurement of their more established counterparts—most platforms can only offer peeks inside their own performance. To prove their collective value, social and mobile platforms need to offer a more coordinated look at the landscape they occupy. 2015 will see the start of a transformation from “walled garden” marketing and measurement toward cross-device, cross-platform, and cross-media approaches that evidence the full impact of these platforms on brand equity, consumer behavior, and sales. Innovation in advertising has been the financial lifeblood for social and mobile media, with brands eager for more targeted reach and higher engagement. But in the rush to monetize through advertising, it can be easy to forget that marketers do not want to build a strategy around any one site – or even around one device – but rather around an evolving and intricate set of consumer behaviors. Consumers do not navigate solely within Facebook and Instagram, or between iAd-supported apps on Apple devices. With the flick of a finger, they swipe between media empires to Twitter, Snapchat, Whatsapp, and the entire open mobile web, all while the TV plays in the background and a tablet is open nearby. Brands need to understand the synchronized impact of these behaviors to justify continued (and increased) media investment. To facilitate this, individual platforms will provide more open, connected data, which links ad exposure to brand attitudes, consumer behaviors, and sales. Linking this data to established consumer panels will allow ever more fine-grained insights into the effects of all social and mobile marketing. Further consolidation in media ownership may also help standardize these data and processes. Marketers can already grasp some threads of performance through standalone audience and attitudinal measurement. Cross-platform measurement will not achieve the granularity of standalone measurement in 2015, but it will start to deliver insights into how brands and their media agencies can best harmonize their overall social and mobile strategy.
- Conventional wisdom says that our mobile phones are the vessels by which we bring the digital world into the physical, but we’ve moved beyond the point of intersection. From the places we take them to the apps we choose, our phones know us as few others do. They have come to represent us— our digital avatars. Millward Brown’s AdReaction 2014 study demonstrated that mobile devices have already become the dominant screen globally for the 65 percent of people who have them. Moreover, research from Millward Brown South Africa shows a staggering 74 percent of people abandoning purchases due to information they viewed on their mobile phones. These devices are becoming the first component of the 21st Century human exoskeleton— always with us, always on. Accordingly, mobile devices are transforming traditional media forms into interactive digital touch points—in short, connected mobiles turn everything digital. Through simple response mechanisms using QR codes, NFC chips, audio recognition, and beacons, the ownership of a smartphone potentially makes everything easily interactive. Every brand touch point, however “analog” it seems, can now be readily digitized. And consumers increasingly expect them to be so, whenever they want them to be. 2014 was the unveiling of reinvented analog channels, and the first experimenters showed us what could be achieved. Lord & Taylor stores are already using beacons to greet guests upon arrival and to provide relevant offers and tips—browse the handbags and receive a Michael Kors promo. PowaTag, a nascent app, now allows you to scan and buy products directly from the glossy pages of a magazine—buy the coat you like directly from an ad in Vogue. China Telecom covered an entire building in Xiamen with a giant outdoor QR code promoting their music player and providing promotional offers. As adoption widens in 2015, analog’s modern-day design will truly take shape. A fresh look will be given to these channels and their ability to reach consumers at the right time and place. Marketers must think about ways they can leverage digital technologies across all elements of the media mix to make their message personal and contextually relevant, their brand accessible, and the purchase easy.
- The evolution of the smartphone has provided us with unparalleled convenience and access to data, but this access goes both ways. Never before have the likes of Google, Facebook, and their advertisers had more access to information about us, and increasingly, about where we go. If you are carrying an iPhone or Android device and the location services are active, chances are Apple and Google are tracking your every move. It was only a matter of time before advertisers started to cash in on this wealth of data that is being collected 24/7. While some might find it unsettling to have their whereabouts constantly tracked, learning about where consumers go and when undoubtedly provides a mass of useful data that can be leveraged by advertisers for better-targeted, more personalized brand experiences. The advertisers that see the greatest returns from location-based targeting will be the ones that look at this technology from the perspective of what it can offer their consumers, rather than merely trying to support their own interests. Using behavioral mechanisms to tailor customer experiences will be key for brands who seek to stand out from the crowd. Virgin Atlantic has recognized this and has been trialing location beacon technology at London’s Heathrow Airport to generate a more personalized customer experience – providing passengers with useful reminders about boarding times and gate information, as well as pulling up their boarding pass as they approach airport security. Macy’s in the US has also been conducting various trials of location-based technology to enhance the in-store experience for their customers. Shoppers at Macy’s can receive a personalized welcome and access location-specific special offers, rewards, and discounts – all delivered to the shopper’s smartphone via an app. And McDonald’s China partnered with Angry Birds to create a location-based promotional game to entertain and reward restaurant visitors. Players were able to vote for their favorite McDonald’s in China, and the most popular branch had a gigantic Angry Birds slingshot attached to the famous golden arches. The implications for the marketing world are enormous. Advertisers will be able to use this data to better understand consumer in-store journeys and dwell times – not to mention giving media owners the ability to accurately measure the level of exposure to POS displays or OOH sites. Service providers such as airlines and banks can make use of the technology to enhance customer experience in increasingly competitive industries, while retailers will be able to tailor a personal shopping experience for each and every customer. In 2015, giving the customer what they want at the right place and the right time will be a key differentiator for cutting edge brands that seek to build personal relevance and meaning with their consumers.
- Mobile will continue to be hot property for both brands and consumers in 2016. Faster connection speeds and smartphones with bigger and better screens now make it enjoyable for people to watch high-quality video content wherever and whenever they want. Mobile will evolve to become a required marketing channel for brands focused on driving consumer-centric growth. Some brands are already leveraging the latest developments in technology to reach consumers in exciting new ways. We'll see the continued rise of emerging technologies, including augmented reality and the Internet of Things – both of which are finding success in the consumer space, and providing value to consumers. More marketers will spend higher proportions of their advertising media budgets on mobile, with mobile video being one of the main growth drivers. But, the performance of mobile advertising to date has varied widely and many brands are making big mistakes with execution. Marketers still have a lot to learn in 2016. The key challenges for brands developing mobile advertising are overcoming low consumer receptivity, and addressing consumers in a way that will be well-received, and is relevant to the brand. If brands want to make a meaningful impact on their audiences, it will be critical for them to consider all mobile advertising plans early in the creative development process. Given the amount of time people now spend on mobile devices, the opportunity for brands is massive. But it's important for marketers to rethink their mobile advertising, and avoid the common mistakes that will have a negative impact on their brand.
- Online video advertising will be the fastest growing ad format in 2016, driven by the increase in video consumption on mobile devices. Millward Brown research shows that online video is a cost efficient way to extend reach and effectiveness beyond TV, and media agency optimizers often recommend increasing online video spends. The majority of online video traffic in 2016 will be mobile – triggering a transformation of the video advertising formats being used, and the business models behind them. Skippable and reward-based formats will also flourish over the next year. According to Pierre Chappaz, CEO of online video advertising platform, Teads, "Ad blockers are sending a clear message; users can't stand formats which block navigation any more. People hate interstitials and non-skippable pre-rolls." This shift from desktop to mobile comes at a time when advertisers, already spoiled by format choice, have also been given the power to choose how they want to pay for media. Today's marketer needs to decide whether to buy on the basis of cost per impression (CPM), just after the video starts playing; cost per view (CPV), after approximately 10 seconds of viewing, or by cost per completed view (CPCV), when the full ad or at least 30 seconds has played. Making this new matrix of payment options and formats work requires brands to align their creative assets appropriately. Too many online videos are still repurposed TV spots that have not necessarily been tested for online readiness. Within the online space, the need to generate intrigue, skip resistance and branded impact in the first 2, 5 or 10 seconds also presents three very different structural creative challenges. Unless format and buying decisions are made early on, and built into the creative briefing process, brands will continue to develop video creative that wastes a significant amount of their media budget.
- Connected TV (or Smart TV) is expected to take over the television viewing experience, bringing profound changes to the way people consume content and advertising. Connected TV opens the door for more on-demand content, better targeting (through addressable TV advertising), and ad free platforms. As viewing behaviors shift, will advertising dollars follow? Will this mean an inevitable decline in the quality of advertising-subsidized content on linear (live) TV, and subsequently a greater loss of viewers? Addressable TV advertising will reduce ad waste by delivering ads only to the most relevant households. It will also offer smaller local brands the opportunity to use TV to advertise. Some platforms will offer an ad-free service and rely solely on revenue from downloads and subscriptions. Others will continue to experiment with models that offer a balance of advertising and subscriptions. We predict significant barriers will make the scenarios above less likely. Until recently traditional TV advertising hasn't had to compete with digital ad dollars. And, there are still plenty of issues around lack of measurement, and the limited inventory available from platform providers. Precision targeting is another challenge for marketers to overcome because it exacerbates the increasing annoyance we hear about from consumers who feel like they're being stalked by advertisers. Even though connected TV provides more choice, viewers will still gravitate to their favorite content curators, which will certainly include linear TV. We don't see Connected TV posing a threat to traditional advertising models today or this year. But 2016 will be a turning point in video content viewing that will represent real implications for the future of TV advertising.
- Content marketing, or branded content, is distributed as native editorial. It's not new; think of the original soap operas. Branded content is often found in-feed and is a type of native advertising. The implications for brands are significant, but how do marketers best strategize and create content? In the UK, content and native marketing accounted for about a quarter of online display ad spend in 2015, according to the IAB. Content can go further than other forms of marketing. The potential for engaging consumers in real time, like Burberry does on Snapchat, is enormous and virtual reality content is poised to take off in 2016. But content marketing is different from broadcast; it's low reach, it's targeted, and it's in-depth. To develop a solid content strategy, marketers need to identify the objective: to enhance brand perception, or to reach a new audience? In the era of ad blocking and crude targeting on traditional media, is content marketing the Holy Grail – a millennial-focused communication strategy? To be successful, content marketing needs to offer something tangible. Brands that offer captivating stories will attract an audience, but the content must be appropriate for the brand. To be authentic and credible on a publisher platform, it's best for the advertiser brand to fall into the same format as the platform. Content marketing is highly appealing and strongly drives consideration. In 2016, marketers will continue to build a future where brands engage with customers most heavily through content, but they will need to measure its return on investment.
- Across over 100 ads on YouTube analyzed by Millward Brown, only 13% achieved more than 5,000 views per week on YouTube. Even for these ads, although the additional views are worth having, they cannot really be defined as “viral.” Viral would only really happen if each person who viewed the ad sends it on to more than one other, and none of these ads came close.
- In order to create good levels of pass along, you need to publicize your content. For instance, in work conducted for YouTube, we found that home page ads are directly or indirectly responsible for 86% of all views, and improve overall viewership by a factor of 6 compared to unpublicized ads. Featuring the ad on the home page meant that even the ads with low viral potential got some views, and only the ads with the best potential came close to matching the featured ad performance.
- In order to create good levels of pass along, you need to publicize your content. For instance, in work conducted for YouTube, we found that home page ads are directly or indirectly responsible for 86% of all views, and improve overall viewership by a factor of 6 compared to unpublicized ads. Featuring the ad on the home page meant that even the ads with low viral potential got some views, and only the ads with the best potential came close to matching the featured ad performance.
- Looking at the Millward Brown CrossMedia database which looks at multichannel campaigns across 252 studies and over 300’000 consumers, we can see that the range of achieved reach for TV remains the highest of all channels. The average Reach achieved being over 70% for TV. If you want to reach as many people as possible and ensure your message has the opportunity to be heard, TV is the way to go. It is also interesting to note that the upper reach ranges for online display and video does not come close to the lower reach range for TV. Meaning that a maximum digital budget does not offer the same reach as the minimum TV budget does. One could of course argue that digital advertising is MUCH more measureable than offline – since brands can track consumers right through to conversion of purchases. And we wouldn’t disregard this, since digital advertising is a great way to reach core digital shopping audiences and retarget lapsed users, or those who have abandoned their basket, BUT TV does lend a great deal of credibility to the brand story NEXT SLIDE