Can Coca-Cola’s ‘One Brand’ marketing strategy help sales pop? | Marketing Week

With the global roll out of its one brand strategy, Coca-Cola is making its “biggest strategic change in the history of the company”, according to the brand’s CMO Marcos de Quinto. Yet its biggest challenge is not a marketing one but an industry one – how to overcome declining consumption amid growing concerns over sugar.

Source: Can Coca-Cola’s ‘One Brand’ marketing strategy help sales pop? | Marketing Week

CocaCola_2016_1

It was crystal clear at Coca-Cola’s unveiling of its shiny new global campaign this week that the brand is looking to directly address the issue of changing consumer habits caused by the debate around sugar and obesity through its marketing.

Speaking at the event, the brand’s CMO Marcos de Quinto addressed the issue head on. He said: “The food and drinks industry is facing some challenges. We have to deal with just one of these ingredients – the overconsumption of sugar. Fortunately, we are able to have products with zero sugar. But we didn’t feel that was enough, which is why we are now shifting our strategy. We want to keep accelerating.”

As a result, Coca-Cola is implementing its ‘One Brand’ strategy, which was piloted in the UK last year, on a global scale. The strategy sees its four variants, including Coca-Cola, Diet Coke, Coke Zero and Coke Life placed under one ‘master brand’.

Any marketing activity will focus on the overall brand, without creating different personalities for its variants. In practical terms, this means consumers won’t see any red Coke bottles without the others strategically placed in the same ad.

Going back to basics

The hope is that the new strategy will ensure the company can adapt more quickly to changing consumer needs. It will do this by making consumers more aware of its low- or no-calorie variants while strengthening the overall brand.

Rodolfo Echeverria, Coca-Cola’s VP of global creative, connections and digital, told Marketing Week: “If the brand you love is Coca-Cola, you will now see all of the Coca-Colas together. The different variants don’t change the overall brand – it’s a feature thing. It’s like you’re buying the same BMW, but you choose to have leather seats instead of the standard material.”

While the brand previously focused on emotional advertising, it is now keen to promote the benefits of its products too.

Echeverria explained: “We are integrating the product story with the emotional story much more than before. Overly emotional ads that get awards at the festivals don’t matter because the brand isn’t even related to the story. We said: ‘Enough is enough – no more communications that aren’t integrated in the way we want them to be’.”

The power of the one brand strategy

Initial figures suggest the one brand strategy has had a positive effect on sales in the UK. Bobby Brittain, the brand’s CMO for the UK and Ireland cited Nielsen data showing that during the 52 weeks ending 25 December, Coke as a trademark grew in the UK. Sales of Diet Coke and Coke Zero also increased, but Coke Life was the only variant to see a decline in sales.

He said: “All of our results in relation to our diet and light variants were better than would have been the case had we not done the one brand strategy. Other test markets performed just as well in relation to their lights performance. We know this works and that this is the right approach to get more growth in Coke Zero, Coke Life and Diet Coke.”

While sales are up, however, Coca-Cola’s market share is stagnant. Brittain added: “The overall colas sector is in growth and we’re growing, but our share of that market is virtually flat. It’s -0.01%, which is the bit that we’re not satisfied with. Any leader wants to make the overall sector grow. It’s what didn’t happen last year, but this year we will want to lead the sector.”

CocaCola_2016_2

Battling long term challenges

The brand’s one brand strategy seems to make sense from a consumer point of view, as it provides a more coherent branding message while also giving its other variants the opportunity to have their moment in the spotlight.

According to IRI figures for the 52 weeks ending 7 November 2015, value sales of Coke Zero declined from £93.2m to £92.7m year on year, while Diet Coke fell from £444.4m to £428.6m. Meanwhile, Coke Life sales were just £1.16m for the four weeks ending 8 November down from £2.67m a year ago.

“It’s a sensible strategy as they have unified the brand. Part of the motivation for it would appear to be so it can drive Coke Life, which has been a lot less successful,” says Robert Haigh, marketing and communications director at Brand Finance.

However, Marketing Week columnist Mark Ritson believes the brand’s renewed marketing push won’t fix the wider challenges impacting the soft drinks market. He says: “[Coca-Cola’s] marketing remains impressive, but the category and the brand are starting to die. Ironically, the one positive of Coke in recent years has been its marketing communications. That ain’t the issue.”

Instead, the instant associations with the Coca-Cola master brand are those of its signature Coke – that it is sugary and unhealthy, which is a big problem.

“Any declines Coca-Cola is facing are related to sugar concerns, so aligning low sugar options with regular Coke reduces the ability to drink a Diet, Zero or Coke Life guilt-free,” adds Emma Rose, senior strategist at Brand Union.

The brand is also in the difficult position where it has to fight consumer trends in the soft drinks market, where an increasing number of people are turning away from carbonated drinks.

“In the short term, the company’s share will remain similar to how it is now. But realistically, it is on a downward trajectory until they reach a plateau. While there is definitely still a place for the brand, its current market share is unsustainable,” Haigh comments.

While Coca-Cola may have heavily invested in marketing, it will be a challenge for it to reverse long term consumer trends – it might be that the brand can only try and manage the decline.

Digital disruption has only just begun | World Economic Forum

The Fourth Industrial Revolution demands that CEOs take responsibility for the massive transformation of their businesses and for the extraordinary impact that this transformation will have on wider society

Source: Digital disruption has only just begun | World Economic Forum

Digital disruption is at the heart of all the conversations I have with CEOs today. And this is not surprising, as it presents the most significant threats and opportunities any of us have faced in business.

When assessing the implications, consider the fact that that new digital business models are the principal reason why just over half of the names of companies on the Fortune 500 have disappeared since the year 2000. And yet, we are only at the beginning of what the World Economic Forum calls the “Fourth Industrial Revolution,” characterized not only by mass adoption of digital technologies but by innovations in everything from energy to biosciences.

While the digital transformation of industries will be profound, we must keep in mind that it will have wider economic and social impact, too, as with previous revolutions driven by steam and coal, electricity and computers.

Waves of innovation

We are seeing the Fourth Industrial Revolution emerge in a series of waves: the digital consumer, who enjoys more interactive and personalized experiences thanks to SMAC (social, mobile, analytics and cloud) technologies; the digital enterprise, which leverages SMAC technologies to optimize the cost of corporate functions and to transform enterprise collaboration for greater productivity; and the emerging digital operations wave, where companies are truly revolutionizing business with the use of artificial intelligence, robotics, cognitive computing and the Industrial Internet of Things. These waves explain why one third of Accenture’s revenues today derive from digital services.

The rapid pace and scale of disruption is unique to the Fourth Industrial Revolution. Digital companies can reach new customers immediately and at virtually zero marginal cost. They can compete in new sectors by collaborating with peers and competitors. They can massively improve quality and productivity by converging technologies and sources of data. Accenture and Airbus are trialing smart glasses that combine data from the cloud, augmented reality and 3D viewing to transform the quality, productivity and safety of workers on the factory floor.

Business leaders tell me that they are intent on disrupting before they are disrupted. They want to drive value from data in new ways, and they are embracing a world of rapid experimentation that allows for the ability to innovate faster. Success is no longer about changing strategies more often, but having the agility to execute multiple strategies concurrently. And success requires CEOs to develop the right leadership capabilities, workforce skills and corporate cultures to support digital transformation.

Turning to society, the implications of the Fourth Industrial Revolution are profound – from saving lives to creating jobs to better stewardship of the environment. In fact, the societal gains from digital transformation could be one to two times the value of the benefits to industries themselves, and even greater in some sectors.

“More than a commercial opportunity”

There will be challenges, however. We believe that the net impact on employment will be positive and that artificial intelligence will augment what humans are great at and make them even better. But we need a revolution in skills and a transformation of organizations if we are to reap these rewards in the workplace.

We must also make collective efforts to establish guidelines and regulations that maximize the societal benefits. Businesses could be more incentivized to assess the social impact of their digital investments. More demanding standards could ensure consumers and citizens have confidence in business models that depend on the sharing of their personal data. Mandates on technologies like vehicle telematics would accelerate the adoption of in-car insurance and other services that reward safer driving.

The breadth of digital’s impact shows that this is not merely a challenge to be delegated to chief digital officers and others. It represents more than a commercial opportunity. The Fourth Industrial Revolution demands that CEOs take responsibility for the massive transformation of their businesses and for the extraordinary impact that this transformation will have on wider society.

Author: Pierre Nanterme is the CEO of Accenture. He is participating in the World Economic Forum’s Annual Meeting in Davos.

Transparency, sustainability, and a purpose beyond profit are more than popular catchphrases – Havas WW Prosumer Study 

Source: New Study Reveals Consumers Expect Businesses To Solve Global Problems — NEW YORK, Jan. 21, 2016 /PRNewswire/ —

 

NEW YORK, Jan. 21, 2016 /PRNewswire/ — Transparency, sustainability, and a purpose beyond profit are more than popular catchphrases. They’re now bottom-line expectations for how larger businesses and brands are expected to operate, according to new research by global marketing and communications firm Havas Worldwide.

The latest issue of Prosumer Report, Project Superbrand: 10 Truths Reshaping the Corporate World,” seeks to understand how the corporate social responsibility movement has evolved over the past decade since Havas Worldwide’s study on The Future of the Corporate Brand in 2007. Findings include:

  • Your Oompa Loompas Are Going Viral: Forget trying to keep corporate secrets under wraps. A majority of survey respondents—including 7 in 10 leading-edge Prosumers—say they make it a point to find out about the companies that provide the products and services they buy.
  • Heroes Wanted: Two-thirds of the global sample agree that businesses actually bear as much responsibility as governments for driving positive social change, and 62 percent say they’d like their favorite brands to play a bigger role in solving social problems.
  • Clear Values Are Invaluable: More than three-quarters of Prosumers say they prefer to buy from companies that share their personal values, and two-thirds of the global sample say a clear set of values helps companies be more profitable.

“Doing something good for society is no longer a nice-to-have for larger companies,” said global CEO of Havas Worldwide and Havas Creative Group, Andrew Benett. “In order to reach ‘superbrand’ status, you must have a strong, clearly communicated social purpose.”

“Project Superbrand: 10 Truths Reshaping the Corporate World” draws on findings from an online survey of 10,131 people aged 18+ in 28 markets: Australia, Belgium, Brazil, Canada, China, Colombia, the Czech Republic, Estonia, France, Germany, India,Ireland, Italy, Japan, Latvia, Lithuania, Malaysia, Mexico, the Netherlands, Poland, Portugal, Saudi Arabia, Singapore, South Africa,Spain, the United Arab Emirates, the United Kingdom, and the United States. The survey was created by Havas Worldwide and fielded by Market Probe International.

Prosumer Reports is a series of thought leadership publications by Havas Worldwide—part of a global initiative to share information and insights, including proprietary research, across its network of agencies and client companies. For more information, or to download the latest white paper, please visit: http://bit.ly/Suprbrnd.

About Havas Worldwide

Havas Worldwide is a leading integrated marketing communications agency and was the first to be named Global Agency of the Year by both Advertising Age and Campaign in the same year. The Havas Worldwide network is made up of 11,000 employees in 316 offices in 120 cities and 75 countries, and provides advertising, marketing, corporate communications, and digital and social media solutions to some of the largest global brands. Headquartered in New York, Havas Worldwide is the largest unit of the Havas group, a world leader in communications (Euronext Paris SA: HAV.PA).

Havas explores CES 2016: Blended Realities, Infinite Screens, Cognitive Robotics, Diagnostic Wearables, Autonomous Mobility, Connected Homes, and Collaborative Systems

Havas explores CES 2016 trends for brands, marketers and consumers, including Blended Realities, Infinite Screens, Cognitive Robotics, Diagnostic Wearables, Autonomous Mobility, Connected Homes, and Collaborative Systems.

Interviews:

Rori DuBoff, Global Head of Strategy, EVP, Havas Media Group

Vin Farell, Global Chief Content Officer, Havas Worldwide

Jez Jowett, Global Head of Creative Technology, Havas Media Group

Mark McClusky, Head of Product & Business Development, WIRED

Tom Goodwin, SVP Strategy & Innovation, Havas Media Group

Jason Jercinovic, President & Global Brand Director, Havas Worldwide

Alexandra Wood, Global Digital Product Director, Havas Worldwide

Nick Wright, Group Creative Director, Havas Media Group

Project Management: Sabina Panday, Havas Media Group

Video direction, production and editing: Black Triangle Media

How Big Data Will Change The Music Industry Forever | Bernard Marr | LinkedIn

It wasn’t long ago that it was a common belief that the internet was killing the music industry.

Source: How Big Data Will Change The Music Industry Forever | Bernard Marr | LinkedIn

For many years the industry failed to keep pace with technology – meaning consumers turned in droves to illegal downloading for the sake of price and convenience. The early solutions offered by music companies, as well as the first tech companies which attempted to move into the vacuum such as Apple with iTunes, enjoyed some success but were always hampered by issues around digital rights management and device compatibility.

Streaming services came next, and finally offered a solution with the potential to overcome both of the main advantages of illegal downloading – price, as services such as Spotify and Youtube are free (to some extent) and convenience – as tunes can be immediately streamed to any device at any time.

So technology and music are bedfellows again – though the fat cat record company execs smoking fat cigars have been replaced by coffee-sipping tech whiz kids. And Big Data and analytics have played a big part in this reinvigorated romance. From recommendation engines designed to choose the perfect individual playlist, to Internet of Things enabled pop concerts, data is redefining the dynamics of the music industry, as well as the relationship between listeners and music, in ever more creative ways.

In the past, the record industry had relatively little way of understanding who was buying their LPs, cassettes or CDs. Downloading allowed them to begin tracking listening habits and making recommendations in the same way that Amazon does for books. With the current streaming model, however, the floodgates are open, with detailed information about when, how and where we are listening all up for grabs.

The industry’s aim now is to combine this deeper understanding of its customers with the deeper understanding of the music itself, which Big Data has also made possible. Raw music is essentially unstructured data but because it is easily digitized, it can be quantified and analyzed. Since 1999, the Musical Genome Project has been structuring music data by manual classification as well as automated algorithms. Up to 450 data points are collected on every song in its database – currently around 30 million. These include factors such as the gender of the vocalist, the instruments in use, the speed of the rhythm and the style of backing vocals. Each track is studied by a specially trained musicians, much the same way as Netflix employs people to watch films and classify their content. By structuring the unstructured data of raw music, tracks can be compared with each other and judgements made, algorithmically, about what a user might want to listen to next. The Music Genome Project was developed by Pandora Media, and it powers their Pandora streaming music service.

Popular as Pandora is, just this year it has been knocked from the top of the streaming charts by its long term rival Spotify, which has its own data-driven plans for world domination. Last year it acquired MIT Media Lab spinout The Echo Nest. This technology performs a similar task of classifying music but is far more automated. As well as using algorithms to analyze and classify music, it crawls the web to find data on artists and recordings to include in its analytics.

In the music industry predicting the future is all-important, and this operates on all scales – from deciding what an individual user of a streaming service wants next in their playlist, to discovering the next Gangnam Style. And recently it has been shown that Big Data has the ability to do just that. Researchers at the University of Antwerp showed that they were able to create an algorithm that was able to predict, relatively accurately, the position that dance records would chart at in the Billboard Dance Singles chart. By analyzing all of the records which made the chart from 1985 to 2014, it was able to predict that every record which made the 2015 top 10 had at least a 65% chance of doing so. In the case of seven of the top 10, it was 70% certain that they would make the grade.

The Internet of Things could be finding its place in pop music, too. This year, attendees at Taylor Swift’s world tour concerts were provided with LED bracelets controlled through RFID technology that change color and pulse in time with the music. With the music industry relying on live music performances for a growing chunk of its revenue we can expect increasingly creative ways to create new experiences for live audiences.

It’s true that there are ongoing concerns about the streaming model of music distribution – both in terms of royalties paid to artists and whether they will generate money in the long term. However by doubling its subscriber base in the last two years from 10 million to 20 million Spotify has proven the popularity of the model, if not yet the profitability. If it doesn’t, then perhaps rival Apple, who this year launched their own streaming music service (heavily featuring Taylor Swift), will.

The music industry has undoubtedly changed to the point it is barely recognizable from that of just 20 or so years ago. The internet has made it easier for unknown artists to gather a fanbase and get their music heard, with many even taking advantage of crowdfunding platforms such as Indiegogo or Patreon to make their money. It is likely to change even more in the next 20, and data analytics is likely to continue to be a driving force behind that change.

 

 

Newsmonkey: Hoe de Nationale Loterij digitaal gaat: ‘We moesten leren dat het daarbuiten oorlog is’

De Nationale Loterij is een 80 jaar oud overheidsbedrijf, niet meteen dé plek voor digitale innovatie. En toch: de laatste jaren is het al haar overbekende merken (zoals Lotto en Euromillions) aan het digitaliseren, met succes. Met een heel digitaal ecosysteem, en onder meer 430.000 Facebook-fans, is het klaar voor de strijd met de privéspelers in het digitaal gokken. (Extract)

Source: Hoe de Nationale Loterij digitaal gaat: ‘We moesten leren dat het daarbuiten oorlog is’

De Nationale Loterij is een gigant: wekelijks spelen 2 miljoen Belgen op de Lotto, Euromillions, Win for Life of gewoon een krasspel. Jaarlijks zijn er dat zelfs 6 miljoen, meer dan de helft van alle Belgen dus. Elk jaar komt er zo 1,2 miljard euro binnen. Daarvan keert het overheidsbedrijf iets meer dan de helft uit aan de spelers, de rest gaat naar de samenleving.

Maar ook bij hen slaat de digitale revolutie toe. De laatste jaren overspoelen online gokkantoren de markt, met allerlei verschillende producten. Jonge mensen gaan steeds vaker online, ook op illegale platformen. Mark Frederix, de directeur marketing van de Nationale Loterij, begon in 2007 zijn digitaal antwoord.

Acht jaar later heeft het meer dan 80 jaar oude overheidsbedrijf een knap digitaal ecosysteem, een stevige app, en 430.000 fans op Facebook. “Alleen al daar zit een team van 5 mensen op, die constant in dialoog gaan met onze klanten. Die band opbouwen en onderhouden, dat is ontzettend belangrijk geworden voor onze merken”, zegt Frederix.

Meer: http://newsmonkey.be/article/39779

Facebook als nieuwe manier van klanten werven

Om die gretige concurrenten het hoofd te bieden, bouwde Frederix en z’n team een digitale oorlogsmachine uit. De Nationale Loterij haalt nu 2,3 miljoen bezoekers op haar site, en nog eens 1,2 op E-Lotto.be. Meer dan 400.000 mensen checken elke maand de ‘Win Checkr’-app. Ze sturen nu liefst 53 miljoen mails per jaar naar haar klanten: over de hoogte van de jackpot, over promoties, sluitingsdagen, … Op Facebook hebben ze via verschillende pagina’s, die samen 430.000 fans hebben. Via die pagina’s springen ze in de timelinevan miljoenen Belgen.

“Het was eerst een kwestie van reputatiemanagement op sociale media: Monitoren wat er over ons verschijnt, modereren ook, en reageren. Vandaag is het ontzettend belangrijk voor ons als merk. Vijf mensen zijn er systematisch mee bezig”, zegt Frederix. Vandaag doen die veel meer om die communities te onderhouden: polls, wedstrijden, grappige campagnes. Zo’n 8 tot 12 posts per week. “Het is een echt ecosysteem geworden, waar we heel trots op zijn”, zegt Frederix. “We hebben ook onderzoek gedaan naar het effect: het maakt ons een moderner merk, en mensen kopen zo meer en regelmatiger, ze praten positief over ons. En het duwt zelfs de verkoop in de krantenwinkels.”

Maar die aanpak, veel meer praten over het merk, dan puur online willen verkopen, is de enige juiste aanpak, zegt Frederix. “Krantenwinkels moeten net leren dat het digitale hun bondgenoot is.”

De grote uitdaging nu is de spelervaring ook online goed uitbouwen. Lotto online spelen is niet zo heel verschillend van op papier. Maar online willen mensen ook de spelervaring. Via een soort Angry Birds of Candy Crush, waarbij je dan geld kan verdienen. Cashbowl is zo’n spelletje van de Nationale Loterij. “Het is nog maar een begin. Maar we voelen ons vandaag al redelijk goed gewapend voor wat komt digitaal, da’s helemaal anders dan een paar jaar geleden”, besluit Frederix.

France: 76% of web users said they wouldn’t consider sharing  personal data (from IOT – connected devices) with brands or companiess – eMarketer

Almost all web users know something—however vague—about the internet of things (IoT). But many worry about the privacy implications.

Source: Consumers in France Wary of Connected Devices – eMarketer

2016 has been heralded as a crucial year for the internet of things (IoT), as more connected products appear in stores and consumers across Europe weigh up the potential benefits of smart thermostats, home security systems controlled via mobile phone, and smart watches and wristbands that help users stay fit and healthy.

Thanks to a sharp rise in advertising and press coverage, most internet users in France know about connected devices. According to a report from the Institut français d’opinion publique (Ifop) , 57% of the online population ages 15 and older polled in November 2015 knew exactly what “connected devices” were; a further 40% had heard the term, but didn’t know precisely what it meant.

Predictably perhaps, knowledge was more extensive among the youngest respondents (ages 15 to 24), residents of Paris and its environs, and higher-income internet users. Males were also more likely than females to know exactly what connected devices were.

Awareness certainly isn’t translating into rapid adoption, though. Fewer than one-quarter (22%) of web users polled by Ifop owned even one connected device. Uptake was highest (16%) for smart home items—smart thermostats were the most popular—and 11% of internet users said they had a health-related device such as a smart watch or activity tracker.

Cost is one obstacle to purchase for many potential buyers; many connected devices are quite new to the market and prices reflect that premium, just-launched status. Moreover, most consumers aren’t convinced that they need IoT devices—or that these can save them money or improve their lives in other ways.

But privacy worries are also a major contributor to low adoption rates, Ifop found. Nearly half (46%) of respondents understood clearly that connected devices generated data about them personally, their habits and their homes. Almost as many were vaguely aware of this process but didn’t recognize the full extent or implications of it.

Whatever their understanding of data generation by IoT devices, an overwhelming majority (76%) of web users said they wouldn’t consider sharing that personal data with brands or companies, because they wanted to protect their privacy. Just 16% were willing to trade their personal data if they benefitted from doing so. Younger internet users tended to view this trade-off more positively than their elders; among respondents 50 or older, only 11% were prepared to share personal data if they derived a benefit in exchange.

While penetration of connected devices is bound to rise, as more consumers in France see their positive side, the surrounding data issues will also be climbing up the agenda. According to Ifop, about 40% of web users had no idea where the data generated by smart devices actually resided, or who owned it. And some hadn’t even asked themselves such questions. We expect that to change dramatically in 2016.

– See more at: http://www.emarketer.com/Article/Consumers-France-Wary-of-Connected-Devices/1013448?ecid=NL1002#sthash.QXq1uJqz.dpuf

Three reasons why Snapchat is moving into ad tech | Marketing Week

Reports that Snapchat is looking to work with ad tech companies and agencies by opening an API show the social network is keen to move beyond offering just reach as it aims to become a “fully fledged social advertising platform” and give advertisers the chance to target and measure the effectiveness of their advertising.

Source: Three reasons why Snapchat is moving into ad tech | Marketing Week

Brands have been quick to make moves onto Snapchat. The site offers something that almost all advertisers want – access to an engaged, young, mobile audience.

Last year, Vodafone used Snapchat for its anti-bullying campaign ‘Be Strong’, while brands such as Unilever, Currys PC World and Burberry have also experimented with the platform.

So far, Snapchat has been selling itself to ad execs as a brand building platform. It has mostly worked with the top global brands which have the budgets for bigger campaigns and receive dedicated help from Snapchat so that ads are in-keeping with other content on the app and do not disrupt the overall user experience.

However the service is now understood to be plotting to launch an API that would lower the barrier to entry and enable Snapchat to offer a wider range of ad services – from better targeting to direct response ads. According to Digiday, Snapchat is talking with partners with plans to start testing as early as Spring, although a full API launch might be come for another year.

Snapchat is not commenting on the report.

Becoming a fully fledged ad platform

With demand for advertising on Snapchat growing, this latest move is a “natural development”, according to social media agency We Are Social.

“The opportunity to create innovative campaigns and reach a younger audience means that demand from brands to advertise on Snapchat is increasing, and the development of a robust API will both accelerate this and lower the barriers to entry,” explains We Are Social’s social media manager Conor Lynch.

“It should also help develop the platform’s targeting functionality and the use of its existing audience data, which is currently quite limited. Snapchat is moving into the same space as Facebook, Twitter and Instagram, in becoming a fully fledged social advertising platform.”

The move is a sign of Snapchat’s desire to move beyond being the cool kid of the mobile world to a fully fledged social ad platform. Facebook, Twitter and Instagram all started off with smaller plays in advertising before opening up their platforms.

The latest example, Instagram, released its API last year, allowing partners such as Adobe, Salesforce and Kenshoo to develop services to help brands. That includes services such as targeting as well as more data on ad effectiveness. Instagram has since opened up its ad platform to all brands and most markets globally.

Proving ad effectiveness

Where Snapchat falls down is on ad effectiveness. According to a survey by eMarketer, US brand and ad agency execs score Snapchat a D (on a scale from A+ to F) for ad effectiveness, behind all the other major social media platforms. It also performs the worst in terms of driving ROI, driving sales, ad measurement and analytics and targeting effectiveness.

emarketer snapchat figs

Georgia Burke, social media manager at creative agency JWT, explains: “Snapchat is the coolest kid in the world of social media, with a huge engaging mobile audience at its fingertips. However up until now, reach is all it could offer to brands. Brands were apprehensive about spending money on the platform because it was very difficult to measure the effectiveness of a campaign.”

Opening an API should help change that. It should enable brands to target ads based on people’s demographics and interests and give them the data they need to measure effectiveness.

That in turn will encourage more marketers to use the platform and help boost its revenues.

“If Snapchat opens a typical API, brands will be able to confidently measure the success of their adverts, encouraging more to start using it as advertising platforms.”

Georgia Burke, social media manager, JWT

“It will give brands access to a very engaged specific audience and the ability to measure the success of their adverts, which is a win/win situation,” explains Burke.

Taking a controlled approach

However she cautions that Snapchat will need to take a controlled approach to opening up its ad platform to ensure ads do not disrupt the user experience and drive away the young, engaged, mobile audience that has made them such a draw for advertisers.

Marketers will also have to ensure they are making ads and content that fits with user expectations and is relevant to their brand.

“Snapchat needs to stay true to itself in order to reassure users that they are the same platform they have always been. Brands will need to create engaging content that natively merges with the fun, of the moment, organic content that is already present on Snapchat,” she concludes.

For the 1st time: US Digital #Display #Ad  Spending (Banner, video, native) will Surpass #Search Ad #Spending (Source: eMarketer)

In 2016, digital display ad spending will eclipse search ad spending in the US for the first time. Combined, the categories of video, sponsorships, rich media and “banners and other” will account for the largest share of digital ad spending: 47.9%, worth $32.17 billion.

Source: US Digital Display Ad Spending to Surpass Search Ad Spending in 2016 – eMarketer

n 2016, digital display ad spending will eclipse search ad spending in the US for the first time. Combined, the categories of video, sponsorships, rich media and “banners and other” will account for the largest share of digital ad spending: 47.9%, worth $32.17 billion.

Within the display umbrella, advertisers will invest the most on “banners and other,” a category that includes many types of native ads and ads on popular social sites like Facebook and Twitter, as explored in a new eMarketer report “US Digital Display Advertising Trends: Eight Developments to Watch for in 2016.” Overall, one in five dollars devoted to digital in 2016 will go to “banners and other” digital display ad types. Video will also command a large portion of ad spending allocated to digital in 2016: 14.3%, up from 12.8% in 2015.

Spending growth in the categories of rich media and video will both be significant: 36.4% and 28.5%, respectively. Rich media’s growth will be driven by growing adoption of “out-stream” and in-feed video ad formats, while video will grow due to publishers looking to capitalize on high-demand, high-value in-stream video ad inventory.

While desktop will remain the biggest beneficiary of US digital video ad dollars in 2016, garnering 57.5% of an expected $9.59 billion in spending, the same cannot be said for the remaining display ad formats. Of the $22.58 billion that will go to banners, rich media, sponsorships and other display-based formats in the US this year, 77.5%, or $17.5 billion, will be spent to reach individuals on mobile devices like smartphones and tablets.

On the one hand, numbers like these reveal a vibrant market in which consumer-led media habits (particularly increases in video consumption and mobile device usage) are funneling display ad dollars to the most desired channels and formats.

But while it may seem to the casual observer that in-stream video, in-feed video and mobile are thriving effortlessly, those entrenched in digital display advertising know that growth in ad dollars can only come from painstaking investment in things like cross-device capabilities, programmatic advertising and continual efforts to address issues of ad viewability and fraud. The following trends are the ones that eMarketer believes most likely to affect digital display spending in 2016 and in the next few years to come

 

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