How Reckitt Benckiser Became ‘Digital at Heart’ | CMO Strategy – Advertising Age

How Reckitt Benckiser Became ‘Digital at Heart’ | CMO Strategy – Advertising Age.

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This report explores the thinking behind the ways marketers and their creative agencies engage with consumers through building communities.

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Getting brand marketers to buy into digital and social media wasn’t always easy at Reckitt Benckiser, acknowledges Laurent Faracci, general manager-North American marketing. But the demonstrable return-on-investment — critical for a company he describes as “cost obsessed” — is now strong enough to easily get their attention and dollars. And it’s transforming the marketing operation well beyond the media mix.

Laurent Faracci
Laurent Faracci

What Mr. Faracci describes as the movement to become “digital at heart” is affecting everything from the U.K.-based company’s agency relationships to how it recruits marketers and works with retailers.
It played a pivotal role in RB’s decision earlier this year to partially unwind its years-long consolidation of creative assignments with Havas in a global review that moved five brands, including Air Wick and Clearasil, to Droga5; Finish to Wieden & Kennedy; and Mucinex and Delsym (previously handled in-house) to McCann.

“We realized that what made a good decision maybe 10 years ago to go with one agency and consolidate every brand around the world into a single network, that was pretty much TV-led thinking, where every asset is very important and costly,” Mr. Faracci said.

Not that every ad isn’t still important, but growing reliance on digital ads requires more content, much faster. “We wanted to bring more diversity and creativity,” he said. “We went to the market and explained that and saw what we believed were the best agencies creatively.”

Havas, he said, remains “a great partner for us,” one that “retains at this stage 85% of the business globally.”

Data driven
The agency move was a surprise given it paired a notoriously tough-minded client with new shops known for unconventional work. As Mr. Faracci puts it: “We are very data- driven. We are less soft and emotional than some of our competitors. We are much more about the business, being entrepreneurial, the data and getting it right, not necessarily getting it fancy or fashionable.”

That said, he believes the new agency partnerships are off to a good start. “People are excited on both sides, and the work we’ve seen is great,” he said. “It’s a journey. We want to be a better client as well.”

The data-driven part, however, won’t be going away. Mr. Faracci sees that focus driving ever more spending to digital, where the company’s marketing-mix analytics show it getting better returns.
While RB is doing more programmatic buying, the focus is on finding what creative and media placements drive behavior change, he said, rather than simply driving down CPMs.

Facebook deal
Sometimes the goal with digital is simply to improve reach, as with a Lysol campaign. TV could only hit 48% of RB’s target affordably, but adding Facebook allowed the brand to reach 65% of the target.
“Now that [social and digital] is becoming a mass medium, there will be inflation,” Mr. Faracci said, noting that many social and digital companies are now public, meaning their financial performance is under greater scrutiny. “But I think they’re producing results more organically than through price increases.”

RB has placed its biggest digital bet with Facebook in an extensive partnership launched more than two years ago in the U.S. That pact recently grew into a nine-figure, multi-year global deal.

“We bet on them because of mobile,” Mr. Faracci said. “And it turned out to be a winning bet. We make very few bets, but we go fairly hard with them when we do it.”

The relationship with Facebook extends beyond the usual in media partnerships to include joint recruiting trips to schools such as New York University. “We explain what a great leaning-forward client can do in the context of a digital economy,” Mr. Faracci said. “It shows us very differently than the CPG stereotype of doing TV and display.”

Internally, he said, “Nobody today contests the value of Facebook,” thanks to the ROI demonstrated by prior programs. “Nobody questions today in the organization the value of online video. Suddenly, you don’t have to fight internally,” he said.

Mr. Faracci terms it the “virtuous circle” of investing in digital, getting better impact and ROI, which in turn generates bigger budgets for more spending. Unlike some packaged-goods players such as Procter & Gamble and L’Oréal, RB has no interest in dropping the savings to the bottom line, he said.

But while digital may help marketing, consumer spending on technology may be slowing the CPG business this year, along with reductions in food stamps and the harsh winter, Mr. Faracci said.

“I believe the weight of technology and technology spending on real middle America is increasing,” he said. “That takes a toll on net-available income as salaries stay where they are.”

“La télé ? Un iPad géant où Netflix, beIN Sports et Canal+ se battent pour votre temps” – Le Point

Source: AFP

“La télé ? Un iPad géant où Netflix, beIN Sports et Canal+ se battent pour votre temps” – Le Point.

Le patron et fondateur de Netflix, qui lance sa plateforme de vidéos illimitées en France ce lundi, raconte la télévision de demain. Interview.

“Imaginez la télévision comme un iPad géant où les applications Netflix, beIN Sports et Canal+ se battent pour votre temps”, raconte le patron et fondateur de l’américain Netflix Reed Hastingsqui lance sa plateforme de vidéos illimitées lundi en France, avant cinq autres pays européens cette semaine.

Quel est votre objectif sur le marché français ? Ne risque-t-il pas d’y avoir une déception pour ceux qui s’attendent à trouver sur Netflix des films récents ?

Reed Hastings : Sur le long terme, dans cinq à dix ans, nous visons un tiers des foyers français abonnés à Netflix, comme c’est le cas aux États-Unis. Mais à court terme, durant la première année, la réputation sera notre priorité. Arriverons-nous à avoir une bonne réputation auprès des utilisateurs français grâce au service que nous offrons ? Le travail sur la plateforme, la qualité et la définition, la sélection, la facilité d’utilisation… La clé d’un succès sur le long terme, c’est la première année. Sans se focaliser sur le nombre d’abonnés, mais sur leur satisfaction. Sur Netflix, nous proposons des nouvelles séries originales et en provenance du monde entier, mais, en France, nous sommes tenus par la chronologie des médias (qui empêche les services de vidéo à la demande par abonnement, comme Netflix, de diffuser des films sortis au cinéma il y a moins de 36 mois, NDLR) qui nous empêche d’avoir des films récents. Il n’y a rien que nous puissions y faire. Les gens veulent avoir accès à tout, mais chaque pays a ses propres lois. En Belgique, en Allemagne ou aux Pays-Bas, nous pouvons diffuser des films récents. Je ne pense pas que nous aurons un jour un impact sur la chronologie des médias, seuls les consommateurs français pourront un jour en avoir un. Le danger, c’est que, sans cette évolution, le piratage va continuer de croître. Au Canada, depuis notre arrivée, nous avons observé une baisse du piratage, comme sur BitTorrent, qui est passé de 30 % à 10 % du trafic sur Internet. Le piratage est notre plus grand concurrent.

Après cette étape d’expansion européenne, quels sont les plans pour Netflix ? Pour maintenir vos prix bas, ne devez-vous pas accroître en permanence le nombre de vos utilisateurs ?

Cette semaine, nous allons lancer Netflix en Allemagne, en Belgique, en Suisse, en Autriche et au Luxembourg. L’année prochaine, nous allons probablement continuer à nous étendre en Europe. Nous allons aussi commencer à regarder le marché asiatique. Nous voulons que Netflix soit disponible pour tout un chacun, partout dans le monde. Quand nous produisons une série comme Marseille (la série française attendue pour 2015, NDLR) ou Orange Is the New Black, ça devient accessible à tout le monde au même moment. Il n’y a pas de chronologie des médias ou de fenêtre diffusion avec nos propres séries. C’est vrai qu’avec nos prix bas nous devons continuer de nous développer. C’est pourquoi nous nous concentrons là-dessus. Et avec nos prix bas et le mois d’essai gratuit, tout le monde peut nous rejoindre facilement.

Quelle est votre vision de la télévision du futur ? Les cinémas existeront-ils encore dans 20 ans ?

Oui. Je pense que les cinémas sont comme les restaurants : un endroit où aller pour s’amuser. Vous pouvez toujours cuisiner à la maison, mais vous aimez sortir aussi ! Aller dans un cinéma est une vraie expérience, c’est un endroit fabuleux pour se détendre, tout comme les restaurants. À la maison, imaginez la télévision comme un iPad géant où les applications Netflix, beIN Sports et Canal+ se battent pour votre temps, innovent et sont régulièrement mises à jour, comme les applications sur votre téléphone. Téléphones, tablettes et télévisions : trois écrans, mais avec un seul usage et des applications.

 

Les agences médias font leur mue (4e édition des Rencontres de l’Udecam)

Bertrand Beaudichon, président de l'Udecam.

INTERVIEW – Pour Bertrand Beaudichon, président de l’Union des entreprises de conseil et d’achat média (Udecam) dont les 4es Rencontres se tiennent ce jeudi à Paris, le numérique transforme le métier et donc le lien avec les annonceurs

Notre métier est en pleine mutation, c’est une donnée évidemment centrale. D’un côté, les marques médias, grâce à l’audience numérique, n’ont jamais été aussi puissantes et, de l’autre, les nouvelles technologies et la big data permettent une amélioration de l’efficacité des campagnes et une meilleure connaissance des consommateurs. C’est cette innovation et les opportunités qu’elle porte que nous souhaitons célébrer lors de la 4e édition des Rencontres de l’Udecam. D’acheteurs d’espace, les agences médias sont devenues des entreprises de conseil où la technologie et les performances marketing ont pris une part très importante. Cette transformation exige des investissements très lourds que les agences ont consentis. Mais leur modèle de rémunération, encore trop souvent fondé sur une commission sur les investissements nets investis, est aujourd’hui inadapté. La rémunération baisse mécaniquement sous l’effet du recul des investissements, mais aussi parce qu’elle ne reflète plus ce que les agences font aujourd’hui pour leurs clients. Les services de ciblage ou de performance ne peuvent plus être rémunérés comme quand on achetait des médias classiques.

Ensemble de l’interview: http://www.lefigaro.fr/medias/2014/09/04/20004-20140904ARTFIG00047-les-agences-medias-font-leur-mue.php

 

Is Predictive the New New Thing in Marketing Technology? | Lattice Engines

Is Predictive the New New Thing in Marketing Technology? | Lattice Engines.

It’s an exciting time to be working in marketing. We are amidst an important transformation with data at the forefront and technology steering the course for marketing and sales professionals. In just the past 12 months, almost $200 million in marketing_frontierVC funding has gone into predictive marketing and sales software companies. Why all the interest?

  • CRM systems like salesforce.com essentially come as an empty box because they were built at a time of data scarcity and have not kept up with the abundance of data that is now available. It does not yet leverage the power of predictive analytics that could improve a rep’s win rate by telling them which accounts they should focus on.
  • The use of marketing automation technology is becoming the norm in many organizations with adoption rates reaching 80 percent, which leaves many marketers wondering, ‘what’s next for marketing technology?’ With over 900 marketing tech vendors and counting, it is easy to get lost in the options and opportunities. (See the LumaSCAPE, WorkBench and Chief Mar Tech samples.)
  • Meanwhile consumer companies like Amazon, Uber and Netflix have proven the power of using vast amounts of data to make predictions about customer buying behavior. Businesses are demanding and many are already experiencing the same level of innovation – the consumerization of B2B.

Predictive Tech for Business Takes Off

According to CBInsights, just last year over $2.5 billion in venture funding went to marketing and sales technology companies. Looking back over the past four years, we’ve also seen a flurry of activity in the M&A and IPO front, with salesforce.com acquiring ExactTarget for $2.5 billion, Oracle acquiring Responsys for $1.5 billion and Marketo going public. We’ve also seen newer marketing automation vendors like Autopilot, Captora, Act-On and Intercom raise more capital this year. Most recently, Salesforce’s acquisition of RelateIQ for $390 million is a step forward, but it still has a long way to go to offer customers predictive capabilities. The larger automation vendors in general are behind in this area.

The early adopters of marketing automation were some of the savviest marketers, and they are now looking for the next thing in marketing, among the fragmented tech landscape. Many of these cutting-edge marketers are turning to predictive applications, which is why we believe in the growing trend of predictive marketing.

The Rise of Predictive Marketing

Though it may feel foreign to marketers, predictive analytics can uncover fresh insights about your prospects and customers. It can also accurately predict buyer intent, in turn helping you better understand how customers will respond to messages, offers and interactions in ways that were previously not possible. By leveraging data science to make sense of all the data available, the savviest companies are marketing and selling more intelligently. Predictive analytics is emerging as central to the modern marketing organization. DocuSign, one of our early customers, has experienced a 22x ROI and 38% lift in opportunity conversion in the first two months of using Lattice applications to fuel its predictive marketing efforts. As part of a larger initiative to complete reengineer its demand funnel, CA Technologies experienced a 400% improvement in its lead conversion with Lattice.

While the concept of predictive marketing is now emerging as the next frontier, the truth is that the technology has been around for some time. Lattice entered the space back in 2006 and with the market now catching up, some of the best names in venture capital are jumping in and investing in the opportunity. We recently studied the growing landscape of companies utilizing data science to provide marketers with predictive applications. You can see our research in our latest infographic, The Next Frontier of Marketing Techoriginally posted on VentureBeat.

The_Next_Frontier_of_Marketing_Tech_updated071414

Storytelling: Le Times et le Sunday Times se racontent à travers une web-série: Unquiet Films Series (Grey London) – Newspaper Works: the real lives, real struggles, real bravery behind the newspaper stories that change the course of history

Le Times et le Sunday Times se racontent à travers une web-série imaginée par Grey London. L’objectif de cette série documentaire appelée The Unquiet Film Series est de dresser le portrait et les convictions des journalistes des titres.

L’agence Grey a ainsi collaboré avec les éditeurs à la création de ces web-doc qui retracent l’histoire du Times et du Sunday Times de l’intérieur. Ainsi sept films dont “power of words”, “question everything”, “photojournalism” & “Times New Roman” ont été dévoilés depuis juin dernier sur la plateforme Foreverunquiet.co.uk. Au total ce sont 9 films qui seront dévoilés. Les protagonistes qui sont des auteurs et journalistes des films parlent de leur rapport aux mots (Power of words). Le film “Times New Roman” montre l’influence du titre, créateur de la célèbre police. Enfin le quatrième film parle, lui, de photo journalisme évoquant la force visuelle, le regard de la rédaction sur le monde, piochant ainsi dans les archives des moments historiques des titres. (source: http://www.ladn.eu/actualites/dans-monde,storytelling-pour-times-sunday-times,36,22594.html)

From The Times: 

Newspapers are all about stories – but sometimes the best stories are the ones we don’t tell.

Let’s not forget that news is often something that someone, somewhere, doesn’t want you to know. The real-life tales of how world-changing exclusives – whether from foreign reporters under fire, or determined hacks banging against stone-walling bureaucracy – are brought out into the open can be just as extraordinary as the articles that end up in the newspaper. Sometimes the story behind our amazing photo-journalism, campaign to change the law on adoption, to make cities safe for cycling, to reveal the corruption at the heart of FIFA, or the lies of a champion like Lance Armstrong are as exciting as a thriller, as tense as an episode of House of Cards.

We decided it was time to showcase just what the best journalists do… the real lives, real struggles, real bravery behind the newspaper stories that change the course of history. It’s all very well to boast that The Times and the Sunday Times strive to speak truth to power, without fear or favour and to report the truth, whatever the cost. But too often exactly what that takes – the death threats to reporters, the legal battles, the toughness and integrity it takes to get the article on the page – gets lost in the telling.

So here, in a series of extraordinary and independently made short films are some of the amazing, true-life stories behind the stories – we hope you find them as moving and inspiring as we do.

 

How will programmatic buying evolve to better serve native ads and other non-traditional content? (source: http://www.business2community.com/)

A great point of view by , Published August 27, 201
full source: http://www.business2community.com/brandviews/newscred/know-programmatic-buying-means-native-ads-0988259#rMDsRrVhw3eDlPQF.99

In fact, you’re probably already being served content that uses this technology to decide what you see. Business Insider released a report recently noting it as one of the fasting growing drivers of content on the web, particularly when mobile and video are involved. According to the report:

  • Real-time bidding (RTB), the key piece of the programmatic ecosystem, will grow at a compound annual growth rate of 42% between 2013 and 2018.
  • RTB spending on mobile, video, and display ads will account for over $18.2 billion of US digital ad sales in 2018, up from just $3.1 billion in 2013.

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Descriptions of programmatic advertising or buying can be both confusing and varied – but at heart it simply means that pieces of software are talking to each other, and using data about the who, where, and when to buy and sell what you see.

In other words, it’s about using data to find the right audience at the right price at the right time.

The implications are deep and long-reaching, and it’s not just for the traditional banner ad either: formats like television are starting to move toward programmatic technology, too.

Related Resources from B2C
» Free Webcast: Build Better Products by Identifying and Validating Your Riskiest Assumptions

That may all sound appealing – but it’s early, and even the sheer number of pieces that need to be connected suggest that automated and programmatic buying of non-traditional content is still in the experimental phase. Included in those pieces are demand and supply side platforms, as well as legacy ad exchanges that are geared towards very specific types of ad units, and content.

Another problem is that the amount of data available and variety of players involved comes with (at times convoluted) concepts like first, second, and third party data. It makes for a complex environment where signal is easily confused for noise, and of course there’s the potential for fraud on a large scale, particularly because, like micro-trading on the stock market, the buying and selling happens at very high speeds and in high volume.

What kind of content fits into programmatic buying?

So far it has been mostly focused on serving things like display and banner ads, but it’s likely that programmatic will eventually encompass any sort of content.

One of the most interesting angles involves the potential for data informed programmatic buying developed for native advertising.

This is still largely in a trial and error phase – the primary reason for this has to do with the difficulty of aligning content with a specific publication, and feeding back data that allows you to adjust what you create over time. If you’re just one buyer dealing with one advertiser or publication, this is a fairly manual but doable process. Applying this at scale, which is what programmatic buying by its nature would require, is much more difficult (though not impossible) to achieve.

At NewsCred we’ve had a few experiments with native advertising, including one that wasn’t so successful…

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Ouch.

While it didn’t elicit as spectacular a response as the Atlantic’s native ad for the Church of Scientology, it was a bit hard to swallow, and we were forced to go back to the drawing table.

Among the things we learned: understanding and using the language and tone of a publication is a must have for native ads.

We also know from experience that storytelling, context, and ideas matter, and that the quality of the content has to be good enough to fit in with the other stories the publication is running.

Once we figured out how to better align ourselves with Adweek and their audience, we tried again:

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This time the reception was much better, and neatly dovetailed into one of our most successful partnerships – a visual storytelling project with Getty Images.

How will programmatic buying evolve to better serve native ads and other non-traditional content?

One thing that will help is transparency around pricing, as well as making it clear where and when content is running.

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Native ad platforms like Syndicateare starting to address the transparency issue with pricing directories, and while it’s not yet a complete solution, it is an important step forward.

Ultimately, programmatic buying platforms will need to evolve in a few areas in order to ensure that the process is scaleable:

  • Aligning with the language and tone of a publication, as in the Adweek example above, is difficult to achieve at scale with programmatic buying.

In addition to targeting via demographics – when making ad buys, programmatic platforms will need to find ways to align data from automated and semi-automated content discovery. In other words, helping buyers both place content and understand where it might get the most traction or response, since that has implications for what they license and create on the front end.

  • Actionable, clear reporting and feedback is a must have.

Because no two companies are alike – and their content will always vary – strategies for programmatic buying will probably always need to have at least a human hand at the very beginning. Having useable reporting will be crucial for buyers or brands when creating their programmatic strategy.

  •  Providing some degree of control and transparency to all parties involved – including end audience, publishers, advertisers, platforms, and brands – is essential.

For now, placing native ads into a programmatic strategy is something that brands can do – but they are wisely being careful about its application so far, since getting this right is ultimately about providing content that audiences actually want.

And that’s worth more than anyone can imagine.


Read more at http://www.business2community.com/brandviews/newscred/know-programmatic-buying-means-native-ads-0988259#rMDsRrVhw3eDlPQF.99

Paying for Digital Content Still Not the Norm in the UK – eMarketer

Paying for Digital Content Still Not the Norm in the UK – eMarketer.

There is no such thing as a free lunch, as the saying goes. However, as consumers have been moving their content consumption habits from the physical to the digital realm, that’s exactly what they’ve come to expect.

Expectation, it seems, is also being put into practice, with much larger numbers of UK internet users accessing free content or services than are opting for paid-for content. According to April 2014 research by Ipsos MORI, commissioned by Samsung, significantly greater numbers of UK internet users had accessed various categories of content for free than had paid for the privilege. For example, only 9% said they had paid for streamed TV, movie or video content; the proportion who had streamed this type of content for free was considerably higher, at 28%.

Even where there was greatest parity—14% said they’d paid for downloaded music content, vs. 18% who said they’d done this for free—this was in an area where a free streaming model is becoming increasingly common.

Of course, given the option of paying for something or getting it for free, who wouldn’t opt for the latter? But a free lunch is very rarely that, and this is true of digital content, too. While UK consumers aren’t particularly keen to pay for content with hard cash, they are prepared to pay with their attention, taking an “ad hit” in order to get their content for free. Given the numbers from Ipsos MORI, it appears that this method of “payment” is the most desirable. However, there are some factors that may sway consumers to pay with old-fashioned currency.

In the mobile app sphere, ad avoidance is something that some consumers take into account when opting to pay for apps, but it’s a far less important consideration than the quality of the content. November 2013 data from PricewaterhouseCoopers found that 40% of mobile phone users in the UK were willing to pay for mobile apps in order to have no ads. However, a far greater proportion—72%—were most willing to pay for what they deemed “valuable content.”

This is something that extends to other content categories, too. In TV and video, consumers are most likely to pay for streaming subscriptions, say, if there is quality content to be had on that platform that can’t be accessed anywhere else—accessing movie back catalogs, for example. The recent FIFA World Cup provided another example of consumers’ willingness to pay for content deemed exclusive or valuable, with 80% of UK smartphone users saying they were willing to pay for World Cup video content, according to research conducted by On Device Research for the Interactive Advertising Bureau. Build the content and maybe, just maybe, they’ll come.

- See more at: http://www.emarketer.com/Article/Paying-Digital-Content-Still-Not-Norm-UK/1011146/2#sthash.fIyGt4jg.dpuf

axa drive : l’application anti-bouchons (Source: Autonews.fr)

 

axa

Dans la jungle des applications dédiées à l’automobile, la compagnie AXA lance un nouvel équipement afin d’aider les conducteurs à voyager plus sereinement. Explications.

C’est le fléau quotidien des automobilistes des grandes villes : parvenir à se rendre d’un point A à un point B sans connaître les affres des embouteillages.

Pouvoir anticiper ces points noirs en adaptant son trajet en conséquence grâce à la connaissance de l’état du trafic, c’est en somme le cœur de la nouvelle application mobile Axa Drive.

Mieux, l’application Axa Drive se pare d’une fonction alerte, qui soumet au conducteur le moment a priori idéal d’un départ, en fonction des aléas qu’il rencontrera sur la route, grâce à l’analyse en temps réel de différents paramètres comme les conditions du trafic (travaux, météo, routes fermées …). Le tout, en pouvant communiquer à l’instant T sa géolocalisation à la personne qui l’attend à l’arrivée.

Mais ce n’est pas tout, AXA Drive dispose aussi d’une technologie qui enregistre la conduite de celui qui prend le volant. A cet effet, l’application propose au conducteur un score de conduite basé sur son comportement au volant (freinage, accélération, prises de virages, allure). Puis, de manière ludique, de pouvoir revivre ses trajets afin d’améliorer au fil du temps son score de conduite, par exemple pour consommer moins de carburant : bien vu et challengeant !

Amélie Oudéa-Castera, Directrice Marketing, Service et Digital d’AXA France, précise à ce sujet : « Avec AXA Drive, nous avons à cœur d’accompagner et de servir nos clients mais aussi l’ensemble des automobilistes pour qu’ils abordent chacun de leur trajet en toute sérénité. Être alerté pour toujours prendre la route au bon moment, choisir le parcours le plus fluide, se reposer sur le soutien et l’expertise de leur assureur en cas d’accident, font partie des nombreuses solutions que nous pouvons désormais leur apporter de manière instantanée et innovante. »

Last but not least, Axa Drive joue aussi la carte de la sécurité en communiquant le cas échéant au conducteur des numéros d’assistance et d’urgence, et des messages de prévention. Axa Drive ou le service à la carte pour chaque conducteur cherchant à conjuguer gain de temps et sécurité : suffisait juste d’y penser, AXA l’a fait.

Télécharger gratuitement l’application Axa Drive (disponible en plusieurs langues) sur :

AXA

APP STORE

GOOGLE PLAY

Like2Buy: seamlessly allows Instagram users to make purchases items liked on your feeds.

Communications and sales channels are blurring – extract from CNBC: http://www.cnbc.com/id/101948093

Target, Nordstrom make Instagram shoppable.

Attention fashion lovers: It just got easier to shop on Instagram.

Both high-end department store Nordstrom and big-box retailer Targetare teaming up with Curalate, a visual marketing and analytics firm, to launch Like2Buy, a platform that seamlessly allows Instagram users to make purchases when they see an item they like on their feeds.

Nordstrom's Instagram page.

Source: Nordstrom’s | Instagram
Nordstrom’s Instagram page.

The concept is dangerously easy: By clicking on the retailers’ profile pages, users can bring up a gallery of shoppable Instagram photos, and click through to go directly to the retailer’s website. There, they can read product reviews and make a purchase through the retailer’s secure page.

Users can also use a function in the Instagram gallery, called “My Likes,” to save items for later.

“We connect with more than 500,000 customers on Instagram by posting items we hope they find inspirational, beautiful and fun,” said Bryan Galipeau, social media director at Nordstrom. “Like2Buy enhances the experience for customers who want to take the next step and learn more about the great fashion we’re featuring, to make a purchase or save items for another time.”

Apu Gupta, CEO and co-founder of Curalate, said Instagram is an “amazing” platform for engagement. He cited a recent study by Forrester Research, which found that the image-driven platform delivered brands 58 times more engagement per follower than Facebook, and 120 times more engagement per follower than Twitter.

“There’s an enormous audience here that is very engaged in what these brands are pushing out,” Gupta said, adding that it was frustrating for both marketers and shoppers when consumers couldn’t easily purchase an item they liked. “[Like2Buy] makes it very easy for consumers to engage with a product and buy quickly.”

Although many tout the importance of brands connecting with consumers over social media platforms, they have struggled to take off as a significant revenue stream for companies. According to a recent report by IBM, only about 1 percent of visitors arrive at retail sites from social media pages.

“I think that’s been the whole reason why we were so eager to do this,” Gupta said.

Last year, Curalate launched Fanreel, a product that allowed brands to incorporate user-generated images onto their websites and product pages. About 50 brands, including Urban Outfitters and Wet Seal, launched the product, and saw the rate at which traffic from Instagram turned into sales increase collectively by about 26 percent.

Like2Buy is available to the more than 450 brands that work with Curalate, including Gap and Neiman Marcus. The individual brands need to opt in to activate the service on their Instagram pages.

The product is already live on Nordstrom’s Instagram page. It will launch on Target’s page in the next few days, Gupta said.

—By CNBC’s Krystina Gustafson