What We’re Reading–February 10th

We’ve searched for the most pressing marketing news so you don’t have to. Here’s what’s happening so far the week of February 10th.

5 Ways To Boost Customer Loyalty
Business Of Fashion

Customer retention demands that brands build customer loyalty, which in turn means that consumers feel that they have a relationship with the brand.

Why it matters: These helpful suggestions gear the reader toward building a loyal base of repeat-shoppers, with aspects from measuring loyalty to building programs around it and developing a sense of community covered. The time is right, now that “It’s harder than ever to hold onto customers, who can shop online with any brand at any time.”

Why Purpose Means Nothing If You Don’t Extend It To The People Who Run Your Business

If you’re outwardly positioning your brand as a force for good, you’d better walk the walk internally, too.

Why it matters: Brands whose values are more than mindless accrual are successful when the goal isn’t simply just touting brand-purpose, but rather, baking it into the operational structure of a business and extending purpose to employees. The results can be manifold, including the ability to attract better talent and retain it.

The Shelf Life Of Creative Is Getting Shorter For DTC Brands
Modern Retail

A muddled DTC market and the quest for fashionable freshness mean more differentiation in branding and design. And that means more creative assets generated.

Why it matters: Good design creates copycats. How are you differentiating your DTC brand design from others in its category?

Kraft Heinz To Boost Media Spending By 30% While Cutting Agencies
Marketing Dive

Kraft Heinz is boosting their media spending by 30 percent (see: Super Bowl commercials for Planters and Heinz ketchup) while “narrowing its number of creating agencies,” reports Marketing Dive.

Why it matters: Kraft Heinz’s latest moves could be a bellwether for the CPG industry at large. More popular Kraft Heinz brands, or those with marketing momentum, will see a boost from the media increase. Note also that creative agencies they are working with have dropped from 36 to 19 in an effort to improve efficiency.

How Marketers Can Improve Their Impact And Influence
Marketing Week

How can we elevate marketing’s reputation when it has been in a decades-long decline?

Why it matters: Marketing’s positive influence is on the chopping block and the CMO role is looked at with skepticism and criticism. It’s an existential crisis for the position, but all is not lost: it’s time to regain consumer (and C-suite) trust.

How Marketers Can Future-Proof The CMO Role
Forbes Council

CMOs should complement their marketing skills with technical and analytics chops due to the data deluge organizations are facing as technology advances.

Why it matters: The often-discussed evolution of duties associated with the CMO position necessitates that marketers have a grasp of data collection and analysis practices.

What Brandless’ Downfall Says About Brand Building In The Digital Era
Marketing Dive

Hard-earned lessons from the demise of DTC darling Brandless.

Why it matters: Legacy brands adopting DTC tactics should heed the recent failures of brands in that category.

Personalisation Must Focus On The Meaning Rather Than The Method

As marketers, simplification is a necessary heuristic. Seeing the patterns shouldn’t obscure the complete picture, though. Here’s a handy guide for keeping the human front-and-center of what you do.

Why it matters: On the other side of the work of marketing, beyond the morass of data and the diet of buzzwords and acronyms is ultimately a human interaction.

AdQuick Raises $6M To Conquer An Advertising Market Google And Facebook Won’t

OOH is having a moment and AdQuick is evidence of renewed investment in a space where brokers are needed.

Why it matters: OOH is picking up as brands spend offline due to Google and Facebook’s duopoly of dominance when it comes to online channels.

Global Brand, Local Market: 5 Ways To Put ‘Glocalization’ To Work
Chief Marketer

Chief Marketer shares five ways to help global brands succeed in diverse local markets.

Why it matters: Don’t let your brand get lost in translation when marketing internationally.

‘Everything We Do Is About DTC’: Inside L’Oreal’s Tech Hub

L’Oreal is investing in tech incubation to develop new ways for consumers to personalize products, moving the beauty brand toward a more direct relationship with consumers and giving them greater domain over user data.

Why it matters: “Traditionally, store retailers have held consumers’ data and shared it with manufacturers only on a need-to-know basis.” Data is powerful and L’Oreal has accounted for owning that power, not ceding it to retailers as has been the case in the past.

Tiffany’s Flagship Next Door Brings Iconic Brand To Luxurious Life

Tiffany’s is experimenting with installations and partnerships in their new test space, a vacant spot next door to Tiffany & Co. while the flagship store space undergoes a 2-year renovation.

Why it matters: “One of the great things about doing the temporary space is we can learn, trial and test—and build some of those learnings into the flagship store.”

With Sluggish DTC Growth, Under Armour Lowers 2020 Expectations
Modern Retail

With shipping delays and unsatisfactory 2020 first quarter earnings, it’s not looking too hot for Under Armour.

Why it matters: A major sore spot for the brand is its DTC strategy (not to mention shipping woes blamed on the spread of coronavirus) which has yielded less growth than expected.

Does The Rest Of The C-Suite Have Confidence In Marketing?
Marketing Week

Deloitte finds that there’s a lack of communication and trust between CMOs and the rest of the C-suite.

Why it matters: Who “owns” the digital transformation conversation? Who is responsible for customer experience? Deloitte’s survey results may give you pause when questioning whether your colleagues in the C-suite have a good understanding of where you fit on the team and what you are responsible for as chief marketing officer.

The Rise Of Experiential Marketing: Beyond A Buzzword
Marketing Profs

The ins and outs of experiential marketing: what it is and why it works.

Why it matters: Experiential marketing is an effective tool if used properly. Get a ground-floor explanation of the concept and how it’s being used by brand marketers to move the needle today.

‘A System That Is Out Of Alignment’: Online Ad Industry Faces Its Identity Crisis At IAB’s Annual Meeting

Audience-based advertising is in crisis and contextual advertising may not be enough to fill attribution gaps. Where do we go from here?

Why it matters: “How long have we seen the regulation freight train coming? Twelve years? Now it’s here, and all behavior has to change.”

Why Catalogs Are Making A Comeback

What’s old is new (or at least effective) again.

Retail campaigns with catalogs outperform those that only rely on email due to a number of factors including cluttered, competitive inboxes and the vividness of a product’s potential use-cases within the glossy pages of a real-to-life catalog.

Why it matters: “Based on our research, we recommend that e-retailers that sell products that people purchase for fun, pleasure, and excitement to consider investing in aesthetic designs and experimenting with the catalog mailings.”

A Call To CMOs To Be Responsible

Lisa Macpherson’s research is centered around technology’s divisive impact and the force of the advertising business model on empathy and connection.

Why it matters: It’s important to examine the industry we inhabit, especially given the strong connection between society and digital technology.

Why Cadillac’s CMO Has Literally Rewritten Its Brand Manifesto
The Drum

A look behind the work that Cadillac’s CMO is doing to widen the brand’s target audience with a new manifesto.

Why it matters
: Cadillac’s reimagined manifesto laid the groundwork for its 2021 “Make Your Way” campaign.

The New Rules For Going Direct-to-Consumer
Business of Fashion

BoF shares an analysis of four DTC brand launches.

Why it matters: While what DTC is exactly has been a topic for debate, this much is true: Direct-to-consumer marketing has altered retail and is being changed itself. Learn from four brands launching into a world where the model has “lost some of its lustre.”

Amazon Maintains Convincing Lead In US Smart Speaker Market

Around 70 percent of total US smart speaker users are expected to use an Amazon Echo device, according to the latest estimates from eMarketer.

Why it matters: eMarketer’s principal analyst, Victoria Petrock, notes that despite market expectations for Google and Apple, Amazon’s Echo device remains dominant in the US through continuous Alexa feature updates and affordability.

10 Steps To Creating A Data-Driven Culture
Harvard Business Review

The biggest hurdles to dealing with data on a foundational level are cultural, not technical.

Why it matters: Companies may have mountains of data, but that matters little if they don’t have the culture to use it effectively.

What’s Next In Marketing: Rise Of The Experiences

“Integrated, experiential marketing is the next era. Let the rise of the experiences begin.”

Why it matters: HBR’s projection about what’s next in marketing takes stock of the evolution of thinking in the industry from “billboard philosophy,” to accounting for digital technology and finally, to focusing on experiences.

After 127 Years, Abercrombie & Fitch Tries New Marketing Approach: Body Positivity

Abercrombie & Fitch is changing its image by taking a divergent approach in their new fragrance campaign: body positivity.

Why it matters: Abercrombie & Fitch, as far as their branding has been concerned heretofore, have not been historically accepting of less-than-sculpted body types. But that doesn’t mean the 127-year-old brand can’t evolve with the changing times.

Sympathy For The CMO

Hear from other CMOs about their top concerns as well as advice on tackling these challenges.

Why it matters: You’re not alone out there. It’s imperative to put an ear to the ground and take note from industry peers to avoid reinventing the wheel.

Editor’s Note: Our weekly reading list is updated daily. This installment is updated until Friday, February 14. Have a tip? We’re looking for must-read articles related to trends and insights in marketing and media. Let us know at editorial@alistdaily.com.

Facebook Launches Pinterest-Like App Hobbi; Instagram Updates Ad Rules

Facebook launched a new Pinterest-like app named Hobbi this week, presidential hopeful Michael Bloomberg’s campaign taps into memelords which motivated Instagram to change its advertising rules and more.

Facebook’s NPE Team Launches Hobbi App

Social Media Today reports that the latest app from the NPE, or the New Product Experimentation team at Facebook will allow users to collect images of hobbies and interests while sorting them into boards.

Why it matters: If Facebook puts resources behind launching Hobbi and expanding it, it could be a challenger to Pinterest. TechCrunch notes, however, that the current iteration is fairly niche and lacks a social sharing component.

The details: Facebook’s latest apps from its product incubator capitalize on rising trends with a “relatively unique angle,” as reported by Social Media Today.

Michael Bloomberg’s Campaign Paid Meme Creators For Internet Relevance So Instagram Is Adjusting Its Political Ad Rules

Bloomberg’s meme campaign, conducted with Fyre-festival marketing alums FuckJerry, led to some ambiguity about whether the 2020 candidate was really sponsoring memes.

Why it matters: Firstly, the importance of this news comes down to a distinction between what Instagram sees as branded content and advertising. 

From TechCrunch’s reporting: The difference is due to the fact that with branded content, “Facebook doesn’t receive any payment and it can’t be targeted. If marketers or political campaigns pay to boost the reach of sponsored content, it’s then subject to Instagram’s ad policies and goes in its Ad Library for seven years.”

Contextually, this change also matters since it comes two days after the FTC voted to review influencer marketing guidelines.

The details: According to TechCrunch, Instagram is “now asking all sponsorships, including the Bloomberg memes retroactively, to be disclosed with a label using [the Branded Content] tool. That would add a ‘Paid Partnership with Bloomberg 2020’ warning to posts and Stories that the campaign paid meme pages and other influencers to post. This rule change is starting in the US today.”

FTC To Determine Whether To Penalize Undisclosed Paid Influencer Posts

The Federal Trade Commission voted 5-0 to approve a Federal Register notice that seeks public comment on whether to revise its Endorsement Guides for advertising. 

Why it matters: The current Endorsement Guides require that social media marketing posts created between an endorser and a seller must be clearly labeled as “ad,” “sponsored content” or “paid partnership.” Weak enforcement, however, has led to gray areas around which influencer posts are organic or sponsored. Making businesses liable for civil penalties and for damages could help reduce incentivized and fake reviews.

The details: Commissioner Rohit Chopra’s statement says, “But when companies launder advertising by paying someone for a seemingly authentic endorsement or review, this is illegal payola. If these companies are also pressuring influencers to post in ways that disguise that their review or endorsement is paid advertising, those advertisers especially need to be held accountable.” Chopra suggests the FTC focus its efforts on larger platforms like Instagram and YouTube and on advertisers that earn huge profits from undisclosed influencer marketing.

YouTube Tests Donation Feature That Applies To Creators’ Videos, Not Just Live Streams

In an attempt to expand monetization opportunities for creators, YouTube is testing a feature called “viewer applause,” which lets users buy a clapping animation that appears over the creator’s video they’re choosing to support.  

Why it matters: Twitch streamers earn a lot of their revenue from donations, and it seems YouTube is borrowing what works for the gaming platform to benefit its own creators.

The details: Viewer applause is in beta testing for now, but Google notes it’s not a one-time function—users can spend $2 on a clap, $500 per day or $2,000 per week on super chats, super stickers and viewer applause combined. YouTube will take 30 percent of donations made through viewer applause, just as it does with super chat. The applause feature will apply to creators’ videos, not just live streams.

Snapchat Tests Another New User-Friendly Redesign

Snapchat’s major new redesign would separate the app from three to five sections and include a black navigation bar at the foot of the screen.

Why it matters: Snapchat’s previous major redesign wasn’t a hit and made many users ditch the app. Another more user-friendly design could be Snapchat’s way of appealing to a broader audience, which would be its ticket to maximizing revenue potential. 

The details: The redesign would give each of Snapchat’s sections more dedicated space and make it easier for new users to navigate the app. An unfriendly user design, some suggested, was one way for Snapchat to keep older users out of the app to maintain its hold with Gen Z. But in order to grow past 218 million daily active users (DAU), it’ll have to keep old and new users alike happy.

WhatsApp Reports 2 Billion Users

Up from 1.5 billion users two years ago, WhatsApp is now the second app from Facebook to reach the two-billion-users mark.

Why it matters: Though WhatsApp has yet to make a substantial contribution to Facebook’s bottom line. Still, its growth is impressive given it gained popularity without any marketing in developing countries like India.

The details: Despite, and perhaps because of, being ad-free and free for users, WhatsApp has become the most popular messaging app just after Facebook, which has 2.5 billion users.

YouTube Reveals Most-Viewed Super Bowl Ads

The Google-owned platform rounded up the top five overall and most-viewed big game ads on its AdBlitz channel.

Why it matters: Amazon’s Alexa-focused spot starring Ellen Degeneres was the only brand to exceed 60 million views. The popularity of the video reflects the rising usage of voice-controlled smart speaker shopping.

The details: Amazon’s “What did we do before Alexa” spot earned the top spot, followed by Jeep’s Groundhog Day spot featuring Bill Murray, Hyundai’s spot highlighting the Sonata’s newest features, Genesis’ GV80 ad featuring John Legend and Chrissy Teigen and T-Mobile’s ad showing Anthony Anderson test the network’s 5G capabilities.

Facebook Launches Fact-Checking Initiative With Reuters

Reuters aims to identify misinformation on social media together with Facebook’s third party fact-checking program.

Why it matters: Facebook has been slow to direct deep-fake content to fact-checkers. Though the platform has said it’s preventing the spread of misinformation by using downranking, the process doesn’t account for the views it receives before fact-checkers are able to moderate it. 

The details: According to the announcement, Reuters will “now assess the authenticity of user-generated photos, videos, headlines and other content on social media.” The initiative will be in effect ahead of the US election and beyond, verifying for Facebook’s US audience in English and Spanish and publishing findings on a specially created blog. Reuters recently partnered with Facebook’s journalism project to create an online course that helps newsrooms worldwide identify and reject deep-fake content, available in four languages including English, French, Spanish and Arabic.

Snapchat Launches Mental Health Resources Feature “Here For You

In honor of Safer Internet Day, Snapchat is launching a new feature that will give proactive in-app support to users experiencing a mental health or emotional crisis. 

Why it matters: Given Gen Z accounts for most of Snapchat’s user base, a resource that informs users on anxiety, suicide and depression could be helpful in keeping the app a safe place.

The details: The feature, launching in the coming months, will include links to expert-led resources on mental health wellness for users experiencing mental and emotional crises and anyone curious about learning more about these issues. Snapchat said it will also launch creative tools and lenses that promote safety and privacy including new filters and its first-ever “Snappable” quiz.

Instagram Reportedly Developing Monetization Tools For IGTV

Reverse engineering expert Jane Manchun Wong found that Instagram is testing a monetization program for IGTV influencers.

Why it matters: The lack of a monetization program is one of the main reasons creators have been reluctant to create IGTV content. Once in place, the program could inspire influencers on YouTube and Facebook to shift their content creation efforts to IGTV.

The details: With the program, Instagram says “You can earn money by running short ads on your IGTV videos. When you monetize on IGTV, you agree to follow the Partner Program Monetization Policies.” 

Instagram Rolls Out New Feature Showing Interaction Level With Who You Follow

According to a tweet from Instagram CEO Adam Mosseri, as of today, you can see which Instagram accounts show up in your feed the most and who you interact with the least.

Why it matters: Improving the user experience in this way could lead to a boost in ad views for Instagram, because fewer posts that don’t resonate with a user means they spend more time scrolling, which results in more ad impressions.

The details: Instagram added two new categories to the “Following” section of users’ profiles. There you can manage a list that shows who you least interacted with and a list that shows which accounts have shown up the most in your feed. A spokesperson told TechCrunch, “. . .we want to make it easier to manage the accounts you follow on Instagram so that they best represent your current connections and interests.”

Editor’s Note: Our weekly social media news post is updated daily. This installment will be updated until Friday, February 14. Have a news tip? We’re looking for changes to and news surrounding social media platforms as they relate to marketing. Let us know at editorial@alistdaily.com.

Starbucks Names Brady Brewer As Chief Marketing Officer

This week in marketing leadership moves, McDonald’s loses its CMO for Australia, Del Taco, Starbucks and Tailored Brands name new CMOs while Ryanair’s chief marketer steps down.

Starbucks Names Brady Brewer CMO

Brady Brewer, who has been with Starbucks for close to 19 years, has been named chief marketing officer according to Adweek

In Brewer’s 19 years of service to the brand he has served as SVP of digital consumer experience, COO of Starbucks Japan, SVP for the Asia-Pacific region and a range of other marketing roles within the company. He began his journey as their marketing manager way back in 2001.

Premier Sotheby’s International Realty Appoints Nicola Lutgert To CMO

Premier Sotheby’s International Realty has promoted Nicola Lutgert to chief marketing officer from her previous position as VP of marketing, reports Sarasota Magazine. She joined the brokerage in 2015.

Aon Marketing Vet Hired As CMO For Johnson Controls International

PR Week reports that Phil Clement joins Johnson Controls International as chief marketing officer after three years without a CMO. Clement’s previous role was CMO for insurance broker brokerage and consultancy Aon, which he left for an advisory position with the company in 2017.

Bandai Namco Names New VP Of Marketing

Ross Borden has been appointed VP of marketing for Bandai Namco Entertainment America. Borden, an industry veteran who held roles with Namco, NCSOFT, and Robot Entertainment, begins immediately. 

The announcement, as reported by Esports Observer, comes as the developer and publisher begins its focus on games-as-a-service.

Jenni Dill Departs From McDonald’s Australia CMO Role

Jenni Dill, who served as chief marketing officer for McDonald’s Australia, is stepping down to pursue other career opportunities. 

Dill had been with the brand since 2016. Prior to this position, she served as senior marketing director at PepsiCo Australia.

No replacement has been named yet.

Nextdoor Names Former Hyatt Hotels Global CMO As Head Of Marketing

Neighborhood-based social platform Nextdoor has named Maryam Banikarim as head of marketing. 

Banikarim joins the company as their first chief marketing officer after serving in that position for Hyatt Hotels and Gannett Corp.

Del Taco Brings On New Chief Marketing Officer

Del Taco announced the return of Tim Hackbardt today. 

Hackbardt will be serving as CMO for the QSR brand and most recently served as a marketing consultant for a number of restaurants. He returns to Del Taco having previously led marketing for a period of four years for the brand.

Tailored Brands Names New CMO

Tailored Brands, the parent company of retail brands including Men’s Wearhouse, Jos. A. Bank, Moores Clothing for Men and K&G. has announced the hiring of Carolyn Pollock as chief marketing officer.

Pollock, who consulted for Tailored Brands in mid-2018, helped shape the current marketing strategy for Jos. A. Bank and grew new customer acquisition channels for the brand.

Ryanair CMO Steps Down

Kenny Jacobs is leaving his position as CMO for budget airline Ryanair after six years in the position, according to Marketing Week. Jacobs will leave at the end of April.

Editor’s Note: Our weekly careers post is updated daily. This installment is updated until Friday, February 14. Have a new hire tip? We’re looking for senior executive role changes in marketing and media. Let us know at editorial@alistdaily.com.

Job Vacancies 

VP Of Marketing OperationsCalifia FarmsLos Angeles, CA
Head Of Media, Digital Marketing And CommunityCalibraMenlo Park, CA
SVP, Integrated MarketingZillow GroupPasadena, CA
Vice President, Marketing StrategyParamount PicturesLos Angeles, CA
Chief Marketing OfficerNPRWashington D.C.

Make sure to check out select job vacancies on our Careers page.

Extended Reality Becomes The Norm At Sundance

This week in Extended Reality (XR) news we see an increase in demand for augmented reality (AR) and virtual reality (VR) developers as well as a huge turnout of virtual experiences at the Sundance Film Festival. XR is coming, are you and your business ready with innovative ways to take advantage of this new(ish) medium?

We previously used XR for mixed reality, however after digging in a bit more we’ve identified the umbrella term of Extended Reality (XR) which is used to define all real-and-virtual worlds combined is becoming more and more common. This primarily encompasses augmented reality, virtual reality, and mixed reality (think a combination of virtual reality and real life) but may include other realities that haven’t been invented yet. Going forward we’ll use XR in this space. 

AR/VR Engineering Jobs On The Rise

What’s Happening: AR and VR engineering jobs are on an uptick as companies look to XR to reach potential new customers as this technology lets people experience product offerings in a completely new and interactive way. 

Growth in interview requests for AR/VR among software engineers is up 1,400 percent from 2018. Facebook currently has more than 3,000 jobs with the terms “AR/VR” and Amazon, Microsoft, Apple, and Google have a total of 1,000. The AR/VR industry is expected to reach $571.42 billion by 2025

Why it Matters: When building new technological experiences it’s important to look at where any given industry is and look and current trends. This growth in XR is a very good indicator that not only entertainment but a variety of industries are going to be impacted by the disruption of augmented and virtual reality. If you’re looking to build a team around AR/VR solutions, it’s a smart move to start looking at potential candidates now rather than later. 

AR And VR Take Sundance By Storm

What’s Happening: Sundance film festival goers typically expect traditional flat entertainment. However, this year VR and AR experiences are disrupting the norm as attendees are interested in a plethora of interactive and personal experiences. Showings include virtual space experiences with waterproof VR rigs, to incredibly personal and emotional 1:1 moments. The shift in packed theaters to longer intimate experiences VR can be seen as attendees prioritize what’s important during their time at the festival and this is ushering in a new notion of VR not being an isolating experience, rather one that allows people to make memorable and personal connections.

Why it Matters: Every brand has something to offer, and as marketers, we have a huge opportunity to leverage VR and AR to make these brand connections more meaningful for our audience and potential fans. By using technology that lets people feel closer to others or brands, we can create authentic experiences that will have fans talking about our products with a personal relationship (or at least create a very memorable and cool virtual reality story to tell).

Report: The Behavioral Trends Of Mobile Gamers

Nearly two-thirds of mobile gamers are more likely to engage with an in-app rewarded ad than a sponsored social media post for retail advertisers, according to Tapjoy’s 2020 “Modern Mobile Gamer: Direct-to-Consumer Retail Report.”

The data suggests that mobile gamers are a high-return growth opportunity for DTC brands and subscription services are still in high demand. 

The report details the behavioral trends of four major segments including Gen Z, millennials, parents and high-income consumers. Across all segments, 70 percent said they’re interested in trying a new subscription product or service. Tapjoy also found that about two-thirds prefer shopping directly from a brand than through a third party retailer, with clothing listed as the most popular product category for online retail shopping. 

All groups identified convenience as the main deciding factor in choosing to buy a product or service. Gen Z and high-income consumers said personalization is a secondary factor whereas millennials and parents chose affordability as a secondary factor. 

Tapjoy’s research found that Gen Z is most likely to engage with ads that feature a trial or new release promotions, image or video gallery of products and personalized quizzes and customization. Gen Z also said brand loyalty isn’t a big factor because they shop with multiple brands in a given year. They do, however, regularly shop for clothing or lifestyle products on mobile devices and they like subscription delivery services because of personalized product selections.

Price-conscious millennials engage the most with customer testimonials, reviews, promotions and image or video product galleries. A majority of them (88 percent) also shop for clothing or lifestyle products via mobile devices. Nearly half (48 percent) of millennials surveyed report keeping their delivery subscriptions active for four months or more and 83 percent already use one to four different subscription services for clothing or lifestyle products.

Parents are price-conscious too but open to trying new subscription services and brands. For ease of purchase, 79 percent prefer shopping online using a digital device. Their subscription habits are similar to millennials’ in that they’re open to trying new subscription services and keep those services running for more than four months. 

Where high-income consumer behavior differs from all segments is that one of the most commonly cited reasons for why they shop digitally is that they have more control over personal touches like color and design. Additionally, they value quality of merchandise as 63 percent said that that factor influences their decision to purchase new clothing or lifestyle products.

A little over half (56 percent) of both parents and high-income consumers spend between $50 to $200 on clothing and lifestyle products each month.

Tapjoy surveyed 11,290 mobile US consumers aged 18 and over between October and November 2019 via a variety of popular games in Tapjoy’s mobile ad network.

Chanel Ties Horticultural Exhibit To Its Beauty Products

Chanel is hosting an immersive botanical exhibit at Paris’ Natural History Museum’s Mineralogy Gallery called “La beauté se cultive” to highlight certain sustainable ingredients used in its skincare products.

The exhibit will pay homage to the brand’s open-sky labs around the world, where Chanel grows and studies plants that are considered for use in its skincare formulas.

According to WWD, in 2002, Chanel opened one of its open-sky labs in Madagascar to study Vanilla Plantifolia. In 2010, Chanel opened another lab in the southern French Alps to house medicinal plant sources that had been overlooked since the second half of the 20th century. 

The two-day exhibit, open from March 28-29, will focus on rare plants from its botanical collection and take place next to the Jardin des Plantes, a 400-year-old botanical garden in France created by Louis XIII as the royal garden of medicinal plants.

Chanel’s horticultural exhibit follows a string of experiential events from the brand, ultimately an effort to remain relevant in an increasingly competitive digital environment and enhance personalization through human interaction. 

In January 2019, the beauty giant opened its beauty concept store The Atelier Beauté Chanel in Soho in New York City, where consumers can take beauty lessons, explore skin regimens with experts and try their favorite perfume at the store’s scent garden.

In December 2019, Chanel hosted an experiential ski lodge inside The Standard High Line in New York inspired by its No.5 fragrance campaign. Open free to the public, “Chanel No.5 in the Snow” was full of Instagrammable moments including an ice skating area and augmented reality-enabled snow globe filter.

Chanel’s parent company LVMH posted its fourth quarter earnings, showing a 12 percent rise in revenue and eight percent organic growth in the first nine months of 2019.

Gen Z, Millennial Trust Friend And Family Recommendations More Than Influencers

Originally published on ION.

(Editor’s note: AList is published by a.network. To get up to speed on the rapid changes affecting the influencer marketing landscape, click here.)

Influencers affect the shopping habits of Gen Z and millennials more than any other generation. An August 2019 survey from GlobalWebIndex confirmed this when it found that 22 percent of Gen Z and 20 percent of millennial respondents in the US and UK were inspired to make a purchase after seeing an influencer or celebrity’s post on social media while 16 percent were inspired to shop after seeing an Instagram stories ad.

Gen X and Boomers don’t rely as heavily on influencers to make purchases as 16 percent of Gen X and six percent of Boomers, respectively, bought something after seeing an influencer or celebrity’s post about it.

Influencers play a huge role in brand discovery worldwide as 31 percent of global internet users said one of the primary reasons they use social media is to research and find products to buy, up 23 percent from 2015. Between 2015 and 2019, the number of Gen Z who used social media to research brands and products jumped nearly 40 percent. 

During that same time, video sites as a product research tool increased by 32 percent, while vlogs grew by 38 percent. For brand discovery, about 16 percent of global internet users said they use social media posts or reviews from expert bloggers versus 14 percent who use vlogs. 

More than increase brand discovery, influencers drive action: 33 percent of respondents said they have shopped directly via an influencer’s social media post that led them to a retailer’s website. 

Despite the aforementioned, younger generations trust product reviews and recommendations from friends and family more than they do influencers. When asked what inspired them to make a purchase in the last month, 48 percent cited a discount on a product followed by recommendation from friends and family (39 percent), an online ad (28 percent), an email or newsletter from a brand (20 percent), a social media ad on the news feed (17 percent) and an influencer or celebrity social media post (17 percent).

The survey also found that consumers don’t perceive big follower counts as the most credible. Amid the unchecked influencer fraud problem, 48 percent of consumers cite trustworthiness as the most desirable quality for influencers to have. Consumers actually trust smaller influencers more—56 percent of US and UK respondents think that influencers with up to 50,000 followers are the most credible. A Morning Consult report in November 2019 also found that only 10 percent of younger generations ranked having a large following as very important.

GlobalWebIndex interviewed 2,767 respondents in the US and 3,568 respondents in the UK. The findings mentioned here reflect a mixture of the researcher’s bespoke study in the US and UK as well as global data from its ongoing quarterly global research.

Streaming Accounts For 19% Of Consumers’ Television Viewing

Consumers spent nearly 19 percent of their television time during Q4 2019 streaming content, according to a special streaming wars edition of the 2020 Nielsen Total Audience Report, which for the first time has utilized smart television data from Gracenote.

The report also found that 60 percent of US consumers subscribe to more than one paid video streaming service and 93 percent say they will either increase or keep their existing streaming services. Among time spent streaming, Netflix accounted for 31 percent followed by 21 percent for YouTube, 12 percent for Hulu, eight percent for Amazon and 28 percent for other services.

Consumers cited cost (84 percent), ease of use (81 percent), variety of content (79 percent), streaming and playback quality (77 percent) and speed (74 percent) as the top five attributes that make a streaming service attractive. When asked why they canceled a paid video subscription service, 42 percent of respondents said they didn’t use it enough to justify the cost.  

The report also found that through December 2019, viewers had access to 646,152 unique program titles, up 10 percent from 2018. 

As for why consumers subscribe to additional paid video streaming services, the primary reason was to expand the content that they had available.

Nielsen also included stats on the streaming audio, which on smartphones reached 64 percent of US adults in Q3 2018, up 19 percent from the year prior. Streaming audio on tablets, the firm says, reached 25 percent while radio and satellite reached 92 percent and 13 percent, respectively.

The bottom line: content is king. Streaming provides marketers an opportunity to easily reach consumers in the digital age. Content creators and rights owners will have more power as streaming grows, but platforms must continue generating high-quality content and lots of it. Otherwise subscribers will lose interest as 20 percent of consumers said they canceled a service after watching all the content they were interested in.

Historic Ad Fraud At Uber With Kevin Frisch

During the 194th episode of “Marketing Today” I interview Kevin Frisch, who was recently the CMO of Wag and before that the head of performance marketing and CRM for Uber. Before Uber, Frisch served as chief marketing officer of GSN Games and Snapfish. Frisch was named to Forbes’ CMO Next List 2019: 50 Game-Changing Marketing Leaders. 

Frisch discusses the largest ever fraud case, a case between Uber and its suppliers of performance marketing and advertising. Frisch shares what happened, what was the trigger that launched the investigation, how they diagnosed what was going on, and several measurement challenges along the way.

Frisch shares the revelations on ad fraud and the difficulty of finding it only after you have the detailed data, “Until you do that, if you’re just relying on the higher-level reporting, you just don’t catch it.”  He advises that “you should start by assuming that half of what’s on the display channels is fraud.” “You can’t sort of out-source, and say, here’s an anti-fraud tool, let me just run it through that.” There is still so much to learn about fraud. Frisch shares a much-needed perspective on how to approach and avoid issues.

Highlights from this week’s “Marketing Today”:

  • Kevin Frisch’s background and pivotal twists along the way. (01:46) 
  • Kevin’s path with a series of B2C companies. (04:10) 
  • The culture within Uber during the controversy. (06:17) 
  • The role of “Head of Performance Marketing.” (07:30) 
  • The intriguing story surrounding the fraud case between Uber and programmatic advertising providers. (08:13) 
  • The discovery and definition of “Attribution Fraud.” (11:37)  
  • Actions every marketer should be taking right now, to avoid ad fraud. (16:36) 
  • Should you be using programmatic? (18:06) Advice on picking better partners and people to help along the way. (19:49)  
  • Uber’s purpose and approach to the “Moving Forward” campaign. (20:49) 
  • Defining “Addressable TV” and its usage at Uber. (23:00) 
  • The Results and reactions for “addressable tv.” (27:59)  
  • Unique challenges for marketing towards driver-partners. (29:20) 
  • What performance marketers should be doing differently in 2020. (35:45)  
  • An experience of Kevin’s past that makes up who he is today. (38:06) 
  • Advice Kevin would give his younger self. (41:19) 
  • What drives Kevin and keeps him going daily. (42:44) 
  • Brands, Companies, or Causes to take notice of. (44:06) 
  • Kevin’s vision for the future of marketing. (46:01) 

Alan B. Hart is the creator and host of “Marketing Today with Alan Hart,” a weekly podcast where he interviews leading global marketing professionals and business leaders. Alan advises leading executives and marketing teams on opportunities around brand, customer experience, innovation and growth. He has consulted with Fortune 100 companies, but he is an entrepreneur at his core, having founded or served as an executive for nine startups.

The Enduring Power Of Like

Originally published at AW360 by Christian Barnes.

Article Takeaways:

  • Why we like some brands and not others
  • Some insight into how our brains emotionally choose brands
  • Emotion beats rational choices…all the time

“I just like them. They’re a good company.”

I came across this in some research recently. An online survey of two thousand retail investors carried out by the market research company Opinium had asked what made investment firms different from one other. For nine of the ten brands featured, most people who knew of them had very specific ideas. But for the tenth, the majority just couldn’t put their finger on it.

It was the cause of much hand-wringing at No10 brand’s HQ. “We’re ambiguous.” “People don’t know what we offer.” “If people struggle to explain how we’re different, we’ve nothing to stop them from choosing others with clear messages and benefits.”

The truth was, they had something way more valuable than fickle rational difference. When the brand’s initial allure falls away, the same rational positives can become negatives and rejection can quickly follow. But brand No10 had the power of “like.”

We humans involuntarily use our ancient, animal, “limbic” brains first to respond emotionally to stimulus. We then rationalize that stimulus, using our more recent and sophisticated “sapiens” neo-cortex. That instinctive “limbic” response can be very powerful in making choices.

Anyone who has, or has had, a significant “other” in their lives knows this. It’s the experience, from the first spark and thrill to the ensuing familiar reality of continued interaction that builds a unique attachment –way beyond mere aesthetics.

So that’s good for an understanding of how we make initial choices. But behavioral scientists can also explain why we might stick with that choice. It’s another of those “biases” like “proximity” or “familiarity.” This one’s my all-time favorite: “IKEA bias;” if you’ve assembled something yourself, you’re likely to value it more than if it was assembled for you. We’re less likely to make lasting decisions based on what we’re told or what others think–and more on what we’ve concluded for ourselves. So making sure that our brands’ behavior is true to their character is logically more important than artificially building and managing their reputations to widen their appeal.

Just as we all like some people more than others, brands that are honest in their behavior are unlikely to appeal to everyone they might commercially want to. But businesses are exposed today more than ever before; customers increasingly see their true character. When manufactured reputation jars with actual experience, it’s betrayed as false. And false equals distrust. In some sectors, such as financial services, trust is both the most important–and currently the most absent–aspect of a customer relationship.

Whether a brand is everyone’s cup of tea or not, the way human brains work means we have more chance of people responding to it if we prioritize the emotional over the rational. In The Long and Short of It, a report by the Institute of Practitioners in Advertising, analyzing over 1,000 campaigns across all sectors, “emotional” responses beat the “rational” two to one.

Even in the tangled, highly regulated and intermediated ecosystems of asset management, FB50 2017, found “…a shift in favor of groups with a brand personality.” Elsewhere, Broadridge’s data also shows that a fund selector’s perception of which provider they “most used” and the one they “most prefer” are strongly correlated.

So perhaps we should focus less on the “what” or “how” of our brand offer–and more on “who” the brand is. Understanding our customers and prospects so that we can build good, enduring experiences for them remains essential. But we should keep investing in flat-pack furniture.

And above all, never forget that simple, spontaneous driver of human choice. The power of like.