Integrated marketing provides a consistent experience for consumers whenever they encounter a brand’s presence. According to a new study by Kantar Millward Brown, campaigns with both integration and customization perform better across all channels.
“AdReaction: The Art of Integration” found that well integrated and customized ad campaigns boosted effectiveness by 57 percent. The data is based on new research across 45 countries, multichannel copy testing of 12 campaigns from eight countries and analysis of Kantar Millward Brown databases.
Customizing content for different platforms is important, the study found, but must also be part of an integrated marketing strategy. Kantar Millward Brown found that 29 percent of the ads tested were integrated but not customized, while 26 percent of the ads were not sufficiently integrated.
While integration is key to brand recognition, marketers and consumers have different views on whether campaigns successfully fit together. Eighty-nine percent of marketers surveyed believe their campaign strategies to be integrated, but only 58 percent of consumers agree.
Integrated campaigns are 31 percent more effective at building brands, even without customization. Basic integration can be achieved with connective elements like the same logo and slogan across channels. If you want consumers to remember your brand, Kantar Millward Brown says, “the more cues used, the better.”
“There is a sweet spot between integration and customization,” Kantar Millward Brown said in a statement. “A strong integrated campaign must be flexible enough to enable novel, complementary content, but familiar enough to link the key campaign elements tightly together.”
The study found that consistent characters or personalities are the individual cues which most help brand impact, often differentiating the best campaigns.
While all channels benefit from integration, the report states, some work even better when combined. For example, the strongest overall synergy combinations are between TV and Facebook, and TV with outdoor campaigns.
Kantar Millward Brown advised that brands only use channels that have a clear role in the campaign and in reaching the target audience. Understanding what each channel can deliver in terms of impact and cost is also important, the company said. Online ads are cost-effective in extending TV reach and building brand metrics from awareness through to purchase intent, for example.
In today’s world, consumers are often painfully aware that advertising exists. Eighty-one percent of global respondents report that advertising has increased versus three years ago, and 69 percent agree that ads are more intrusive now.
“Consumers feel overwhelmed by advertising from all angles,” said the report.
Integration may seem daunting, but Kantar Millward Brown reminds us that every great campaign starts with a strong central idea. Campaigns with a strong central idea performed 64 percent better across all brand KPIs, especially brand image associations at 91 percent. Such an idea acts as “connective tissue” across all content, according to the report.
When asked if campaigns are doing a better job at storytelling and integrating across formats, responses varied by country. Marketers in Nigeria, India, Saudi Arabia, China and Brazil are making the most progress, according to consumers. Less progress is felt in the UK, Netherlands, Belgium, France and Czech Republic.
Whales—a.k.a. players who spend a great deal on in-app purchases—bring in the majority of revenue for the free-to-play (F2P) mobile game market, despite there being fewer of them to support a game. As mobile games evolve, so does the definition of “whale.”
“Most game developers think of whales as their top spenders, but depending on the genre or objective of the game, this could be defined differently,” said Ben Chen, SVP and GM of developer relations at Tapjoy.
Chen referred to casual games that primarily monetize through ads instead of in-app purchases, so they focus their marketing efforts on driving user engagement. These games place higher value on user retention, defining ‘whales’ by the number of sessions and time in-app than overall spend.
DeltaDNA CEO Mark Robinson also sees the term evolving. He says the standard definition of a whale is someone who has a lifetime spend of more than $100, but that number is probably too low nowadays, and maintaining spend has become more important. A better definition for 2018 is someone who spends more than $100 per month on a game.
“Most publishers these days care about month-on-month spend rather than a flat amount in a lifetime,” said Robinson. “That is why so many older games release very niche content in a bid to keep their highest-level players playing longer.”
Robinson added that by playing longer and spending small amounts per session, rather than dropping a large amount all at once, lower spenders can eventually become whales. But not all paying players want the same things from their games.
“Some will spend for a competitive edge while others will do more for cosmetic reasons,” Robinson explained. “However, the spending patterns of these are different—players only spending to win or progress faster will burn out quickly while those that are engrossed in the game and want to customise the experience are more sustainable.”
Whales can also be divided into subcategories. In December, DeltaDNA released a study on how gender impacts gameplay and found that on average, women spend 44 percent more on than men on mobile games, specifically puzzle and casino games, suggesting that women are more invested in the platform.
Robinson said that women tend to be attracted to aesthetics, preferring games with gender-neutral art and design across all genres, rather than ones that are very masculine-oriented, such as those that only have male characters to embody or feature scantily clad women.
He also said that older gamers also make up a large fraction of the mobile gaming community, but this audience seems almost exclusively interested in very casual puzzle games and social casino apps.
The fast growth of mobile gaming not only redefines what a whale is, but brings into question whether a system where the vast majority of revenues are brought in by a minority of players is sustainable.
Robinson believes that the current monetization systems are sustainable, but they may not be the best ways forward.
“Games are under a lot of scrutiny for exploiting gambling mechanics which have sustained the casino industry for years,” he explained. “There is no reason why these would stop working, since casinos have been around and profitable for a long time. But in the long run, this may give F2P a stigma it can’t shake.”
Chen says as casual games grow in popularity, more developers are turning more toward ad-based monetization to drive revenue. While there will always be successful core titles that are sustained primarily through purchases, the model doesn’t work as well for very extremely casual games.
“For these kinds of titles, user engagement matters more than anything,” said Chen. “Each time you get your users to open the app and watch a single video, you drive incremental revenue. Plus, developers are becoming more sophisticated about where and when to promote video ads, and the ad products themselves are becoming more engaging, like with playables (streaming demos) or videos with interactive end cards. All of this helps developers more broadly monetize their audience and drive incremental revenue from every user.”
As the Cleveland Cavaliers releases one of the first NBA 2K League virtual jersey sponsorships—a Hot Pockets patch on the upper right chest—it could provide a case study for non-endemic brands looking to make esports headway.
Cleveland Cavaliers senior director of digital partnership Jonathan Sumers says this sponsorship strategy isn’t a hard one for companies to understand, as it replicates the actual NBA experience.
“It’s a much easier sell-through to show companies how their brand will be incorporated into the game itself,” Sumers explained. “Everyone understands how courtside signage works in the NBA and it’s the same in the NBA 2K game. It’s an organic and natural way to integrate brands than other esports games—like a Dota 2, where companies don’t understand exactly where their brand appears on screen.”
Hot Pockets will also be promoted inside the Cavs home NBA 2K virtual arena as part of a marketing partnership with the local Cleveland Nestle brand in a campaign that will include digital and social media content.
Mohini Joshi, marketing director for Hot Pockets, endorses the campaign for the high correlation between his brand’s consumers and NBA fans and gamers, and for the chance the partnership provides to become more relevant in that gaming space.
Hot Pockets parent company Nestle kicked off its esports collaboration by incorporating gaming influencers into its branded content, and then evolved into influencer brand integrated content.
“One of the most significant aspects of the Cavs Legion opportunity is the way it’s being approached as a partnership instead of a corporate sponsorship,” Joshi explained. “This partnership will involve working together with the Cavs Legion Game Club to create meaningful content.”
Anthony Muraco, director of gaming operations for the Cavs, told AListDaily that the challenge traditional esports games have in connecting with mainstream spectators is that if you’re not a League of Legends or CS:GO player or enthusiast, it’s hard to grasp what’s going on.
“If you understand basketball, you understand NBA 2K,” Muraco said. “This will allow NBA 2K League to cater to a wider audience and a more traditional basketball audience. It’s also a great introduction to esports for new fans. And the ability to root for your hometown team is a concept that will also connect with NBA fans.”
Hot Pockets works with former esports pro and current influencer Matthew “Nadeshot” Haag, who is the CEO of the Cavaliers’ new League of Legends team 100 Thieves.
“We’re talking to corporate partners who are new to this space,” Sumers said. “And it’s not the hardest to sell through when you tell them the audience and manner and authenticity of the NBA 2K brand. It’s unique to esports and you don’t find that in other spaces.”
The gaming and esports audiences are young and digital first: 56 percent of gamers are 34 or younger. Primarily online and on social media, they’re avid ad blockers that do not watch traditional TV or respond to conventional advertising. Like with any food company’s campaign, effective engagement in this realm will be a challenging priority.
“Brand integrated content must be transparent and communicate the product benefit– and where, and from whom, consumers get this information is critical,” Joshi said. “Consumers have a high trust level with influencers like Nadeshot that puts credibility in the products they include in their content.”
In Joshi’s experience, the more closely the brand targets its consumer, the higher the ROI.
“We see up to three times as much engagement on influencer brand integrated content compared to non-influencer branded content on our owned channels,” Joshi explained. “The closely linked relationship between gaming and the Hot Pockets brand is an area we’ve been activating against for years and continues to be a strategic priority for us.”
Looking ahead, Hot Pockets plans to work with the Cavs to develop a streaming video strategy.
By the time C-suite marketers hit CES, they know their agenda—and we follow along with their schedule each year. In 2018, we heard CMOs talking about diversity, data and voice marketing as three strategies to hone in on soon after the show closes.
Marketers Make Diversity, Female-First Messaging Priority
After the #MeToo movement, brands will increase marketing and messaging toward a future that is meaningfully empowering females.
“It is time for change,” said Pamela Drucker Mann, CRO and CMO for Conde Nast. “As a marketer, we need to think about how we address the community in a new way. How do we first and foremost think about women in our own organizations? And how do we market to them, and have them think differently?”
Consumers have expectations from brands to champion the kinds of changes that governments might not. According to Meredith Verdone, CMO for Bank of America, that will mean challenging authority.
“We’re not going to represent anything that is not aligned with our values,” said Verdone. “As a brand, we need to recognize the power shift that’s happening. The [marketing] industry has a lot of work to do.”
One way for brands to curate impactful marketing is to look in the mirror, hinted Google CMO Lorraine Twohill, and work with female creative directors to craft the particular messaging that is needed to ignite change.
“How many creative directors are women? We have to look at our own work as well,” said Twohill. “The marketing industry has a long way to go.”
Data Needs To Be Complemented With Creativity
The availability of new martech and democratized, quantified data is allowing marketers to deploy strategies in a relevant, economic and compelling fashion to drive growth.
CMOs from Deloitte, MasterCard and Turner agreed that data will remain paramount in order for their respective brands—and fellow marketers—to own relationships with consumers and deliver deeper experiences. But since data can sometimes be misleading, marketers need to spend more time in trusting their creative instincts.
“It’s the greatest time to be a marketer, because it’s not just about big data. We still have creativity, and everyone values that,” said Diana O’Brien, global CMO for Deloitte. “You still have to ask the broad questions so that you don’t fall into just data telling you something.”
For entertainment marketers who are trying to reach cord cutters and mobile-first users, they’ve only been exposed to data in the last handful of years, so using data for constant iteration to craft messaging will continue to be key.
“We now have the visibility that we never had before with viewing data that was not available to us before,” said Molly Battin, Turner’s EVP and global chief communications and corporate marketing officer. “Data helps us understand how [viewers] want to consume the content, and I can deliver more targeted, relevant messages that mean more to them.”
Battin said she’s increasingly depending on the in-house Turner Data Cloud to marry art, science and storytelling to determine which consumers are converting and tuning into their slate of programming across different networks. In addition to making new material, she and the teams at Turner are leveraging the data insights for the ad sales and internal media teams to use at their disposal.
Raja Rajamannar, chief marketing and communications officer for MasterCard, said that although quantitatively driven decision making is important, at the end of the day, you still need to rely on the human element and realize that data can’t track a potential smile you bring to the face of your target audience. He was quick to point out that the brand’s now famous “Priceless” campaign did not perform as well as the alternative idea when originally tested with data years ago.
“The key thing is to not ignore judgmental and creative decisions,” said Rajamannar. “Unless you are successful in the short term, there is no long term. Use data, but still trust your gut feel.”
Voice-Assistant Devices Emerge As New Purchase Channel
An overwhelming popular consensus from marketing executives is that voice-assistant devices, a darling of CES last year and now a little bit more mature in 2018 and ready to grow even further, is positioning itself to be the fourth purchase channel for consumers.
Marketers who are late to the ballgame in crafting strategies that are native to the platform and deliver valuable, frictionless smart home experiences will potentially put their brand at risk of being on the outside looking in as the battle for the voice ecosystem heats up.
“Voice marketing is an interesting journey—it’s about delivering value in a more intuitive way for people to access content,” said Yin Woon Rani, vice president of integrated marketing at Campbell Soup Company. “We believe that voice will have an important use case in the future, but we do not have it completely cracked yet.”
Once consumers yearn for more than just music streaming, alarm reminders and weather reports, marketers will have to walk the tightrope of delivering valuable information with the occasional deal, sale and promotion from the newfound artificial friend and cloud-based brain.
“The jury is still out as to whether or not these platforms will continue to reach as many horizontal use cases as possible,” said Ryan McInnis, director of marketing for Voysis.
Annapurna Pictures has hiredMichael Pavlic to the position of president of creative advertising, where he will oversee all marketing efforts by the studio for its upcoming films.
“Mike and I worked together for years at Sony where I was able witness his intrinsic dedication, intelligence, and kindness firsthand,” said David Kaminow, Annapurna’s president of marketing. “Those qualities, along with his incredible eye and ingenuity with creative ad campaigns, make him one of the best in the business, and I am looking forward to working alongside him once again.”
Pavlic, prior to signing on with Annapurna, worked at Sony Pictures as president of worldwide creative advertising.
Paramount Pictures has announced several promotions in its marketing department, after significant corporate structure changes in 2017. Irene Trachtenberg has been appointed head of worldwide marketing, Beth Pinker to senior vice president of field publicity and targeted marketing and Susannah Steinberg to vice president of field publicity and targeted marketing.
“These promotions are well-deserved acknowledgements of years of hard work and dedication by a team of people who are among the best at what they do,” said Rebecca Mall, co-president of domestic marketing, in a press release.
Phil McCarn has joined The Harlem Globetrotters as vice president of global partnership marketing, to build strategic alliances for the team as it enters its 92nd season of play.
“We are absolutely thrilled to welcome Phil to the team,” said Howard Smith, president of the Harlem Globetrotters. “Given his more than 20 years of experience and relationships, we anticipate his efforts will bring invaluable experience to the Harlem Globetrotters and expand our partnership initiatives to new levels.”
McCarn joins the Globetrotters from IMG College, where he worked as a sales leader for the Georgia Tech IMG sports marketing team.
Gimlet Media has announced the hiring of its first-ever chief marketing officer, Jenny Wall. In addition to overseeing all marketing efforts by the company, Wall will also handle audience growth.
“Jenny brings over two decades of entertainment marketing experience, with a proven track record for sparking cultural moments through stories that matter, from House of Cards to The Handmaid’s Tale,” Matt Lieber, co-founder and president of Gimlet, said in a statement.
Prior to signing on with Gimlet, Wall served at Hulu as head of marketing, overseeing the launches of The Mindy Project, Casual and The Handmaid’s Tale. Before Hulu, Wall worked at Netflix as vice president of marketing.
Taco Bell is expanding its executive team, bringing onJulie Felss Masino as brand president, a new role devoted to in-store sales growth and customer relations.
“We are proud of the momentum the Taco Bell brand has seen globally, and the continued growth here at home,” said Brian Niccol, CEO of Taco Bell. “We are expanding our leadership team and are excited to bring on Julie as Brand President to continue our success and innovation, with a renewed focus on technology and greater access to the brand for consumers.”
Masino joins Taco Bell from Mattel, where she led the company’s Fisher Price toy division. Previously, she spent over a decade in various leadership positions at Starbucks and served as CEO for Sprinkles Cupcakes.
Volkswagen of America has appointedDuncan Movassaghi to the position of senior vice president of sales, where he will be responsible for sales region management,
“We are excited to welcome Duncan to his new position. His strong automotive and sales background combined with his experience within the Volkswagen Group will be an invaluable asset as Volkswagen seeks to grow in the U.S. market,” said Derrick Hatami, executive vice president of sales and marketing for Volkswagen of America.
Movassaghi has been with the Volkswagen group since 2010, most recently holding the position of managing director for Skoda UK.
The Rest Of The C-Suite
(Editor’s Note: Our weekly careers post is updated daily. This installment will be updated until Friday, January 12. Have a new hire tip? Let us know at editorial@alistdaily.)
PromaxBDA, an entertainment marketing trade association, has brought onJennifer Ball as head of marketing.
“Jennifer’s strategic, creative and background will provide leadership and inspiration to the association and its members as we enter a new and exciting time in our industry,” said Steve Kazanjian, PromaxBDA’s president and CEO.
Ball joins the organization from Univision communications, where she worked as executive vice president of marketing and content partnerships.
Glamour magazine has a new editor-in-chief for the first time in 16 years, as Samantha Barry is replacing the retiring Cindi Leive. This appointment indicates a shift in focus toward digital-first content.
Before leading Glamour, Barry has held roles for BBC World News and the Australian Broadcasting Corporation, and most recently as a social media executive producer for CNN.
Spotify’s chief content officer, Stefan Blom, will be stepping down from his position, as reported by Recode. This news comes just after the company reportedly filed for an unconventional IPO with the FTC, and may hint at looming trouble for the company.
Fox Networks Group has hiredColin McLeod for the role of general manager for its UK division, replacing Jeff Ford, who is shifting to a consulting role.
“Colin’s blended background offers a well-rounded and hugely valuable experience to our business, and we have no doubt he will step into the role and immediately have an impact,” said Diego Londono, COO of Fox Networks Group Europe and Africa.
McLeod is a veteran of NBCUniversal, spending ten years at the network, most recently as managing director for the UK and emerging markets.
Square Enix and Nissin Cup Noodles’ latest team promotion is for Dissidia Final Fantasy NT, a new squad-based brawler game releasing January 30.But this is far from their first campaign together—the brands discovered their shared demographic interests a few rounds ago.
“There’s a strong synergy between Nissin and Final Fantasy in terms of who our fans are, our brand personalities and our authentic Japanese roots,” Jaclyn Park, director of marketing for Cup Noodles told AListDaily. “This partnership sets us up to continue to explore win-win[s].”
For this promotion, specially-marked, limited-edition packages of Cup Noodles will feature characters from the game, and fans can text a photo of their purchase receipt to the brand to unlock a special “royal raiment” outfit for Noctis, a playable character in the game.
The instant ramen brand first partnered with Square Enix for Final Fantasy XV with a special Cup Noodles-themed trailer and side quest inside the game called “The Perfect Cup.” The mission challenged players to track down ingredients to add to a Cup Noodle snack—the favorite food of Noctis’ companion, Gladiolus.
Nissin teamed up again to help celebrate the 30th anniversary of Final Fantasy with limited-edition ramen packages that featured boss characters from across the game’s history, with receipts redeemable to win a Cup Noodle helmet. Those who participated in the promo were also entered to win one of 30 giant collectible forks. The two-foot-long “Ultima Weapon Fork” is made to look like an ornate sword—a staple of Final Fantasy weaponry.
“Nissin Japan’s partnership with Square Enix in that market last year was a great success based on overall program metrics, and we even saw some spill-over into the US,” said Park. “In fact, it was so successful that it spurred us to work with Square Enix here [in the US].”
For video game developer Square Enix, the ongoing partnership with Nissin offers marketing opportunities by creating value for its fans.
“We both have incredible, passionate fans, and by the way of this partnership we are able to provide a unique way for both of our fans in the US to interact with each other’s product in a way that feels like a natural extension of [Final Fantasy] history,” Ryan Lacina, director of product marketing at Square Enix North America told AListDaily.
Park endorses approaching business relationships that add an overall value to their consumers.
“Look for your brand’s natural fit with a partner, and then build something that can make one plus one equal three for a consumer,” said Park. “If you have to question whether a partner ‘feels’ right, you’re probably trying to force a relationship that isn’t quite there in consumers’ minds. Gamers, in particular, are an extremely passionate and discerning community, so anything that feels forced could do more harm than good.”
In her first major beauty deal, actress and model Gal Gadot has joined Revlon as the official spokesperson for Live Boldly, a new beauty campaign that focuses on personal strength over appearance.
Wonder Woman is more concerned with doing the right thing than what shade of lipstick to wear. But despite a swell of feminist movements in Hollywood, Gadot does not seem concerned that a makeup endorsement may be perceived as shallow or off-brand.
“Anything that makes you feel more confident, more beautiful and better about yourself has to do with [feminism],” Gadot told WWD. “There’s a big misinterpretation about the way that people view the term of feminism. I have friends—girlfriends—who have careers and they’re mothers and they do it all, and they are afraid to say that they’re a feminist.”
Gadot’s Wonder Woman seems to reflect the actress’s beliefs: alter ego Diana Prince always has her hair, makeup and clothing on point—as does Gadot in public appearances. Galdot has gained a reputation for pairing style with comfort and affordability, often wearing flat shoes to formal events. She hinted at her new ambassadorship role during the Golden Globe Awards, revealing that she was wearing around $6 of Revlon makeup.
In a behind-the-scenes video announcing the partnership, Gadot explained that she feels nostalgia toward the Revlon brand since both her mother and grandmother used its beauty products.
Revlon’s Live Boldly campaign, which launches later this month, will include a series of experiential activations and cultural immersions. Revlon says it hopes to bring women together around powerful conversations, shared experiences and a celebration of diverse beauty.
Gadot’s fans have shown an outpouring of support for the Revlon partnership so far, and the brand views her ambassadorship as “emblematic of the beauty, determination and attitude that reflects what it is for women to live boldly in today’s world,” according to a statement from Revlon president and CEO Fabian Garcia.
Gadot is actively marketing for campaigns beyond the beauty industry as well—she has been named chief experience officer for Huawei smartphones. The “New Era of Connectivity” campaign will kick off sometime this year with Gadot, a longtime user of the brand, front and center. As Huawei attempts to gain household recognition in the US, she will be “play[ing] an active role in listening to and providing ongoing ideas to inform how Huawei will bring the best experiences to its consumers,” according to the brand.
Dell made two gaming announcements at CES this year, including a virtual reality-capable Inspiron Gaming desktop that the company hopes will drive growth for VR adoption, which speaks to Dell’s goal of reaching gamers ranging from casual players, to hardcore enthusiasts and aspiring esports competitors.
Speaking with AListDaily, Frank Azor, vice president and general manager of Alienware, gaming and XPS at Dell, said that the company doesn’t distinguish between casual or hardcore gamers, instead letting the players decide their designations for themselves.
The all inclusive approach is working out, as the gaming division’s revenues are up 63 percent year-over-year in its 12 focus countries, which include North America, UK, Germany, China and Japan.
Upgrading Esports Sponsorships
Last year, Alienware partnered with ELeague to integrate Tobii Eye Tracking technology into Counter-Strike tournaments, which Azor hopes will be as disruptive as instant replay was to traditional sports.
The company also hosts the Alienware League in China, which is a minor leagues esports tournament, open to the public, that acts as a test bed for recruiting aspiring pro players. The brand also announced at CES that it’s heightening its relationship with Team Liquid by launching two Alienware esports training centers—one in Los Angeles and the other in the Netherlands. Azor said that no other large corporation has done this with an esports franchise before.
These centers are inspired by traditional sports programs, and they represent a new kind of relationship between sponsor and team. Usually, team owners—some from traditional sports backgrounds—are the ones responsible for launching training centers to help their teams compete. Although a company might sponsor an existing training house with branding, equipment and technology, this is the first time a sponsor has decided build training facilities from the ground up in partnership with a team it doesn’t own.
Pro esports players will have access to coaches, nutritionists and the best gaming equipment Alienware offers. But what fully sets this sponsorship apart from others is that use of its products is completely voluntary.
Azor said that requiring teams to adapt to new mice and keyboards for the sake of a sponsorship is as a major point of frustration for esports teams. Instead, Team Liquid chose to play using Alienware’s hardware, and became one of the first pro teams to feature the brand’s gaming peripherals. The company is also including Team Liquid in its product design process and is building an esports advisory council that will participate in the company’s three-year roadmap planning for all its products.
“We think this should be the formula that all esports teams should be looking at,” said Azor. “That level of integration—of genuine collaboration—is disruptive and unique.”
Although typical esports sponsorship practices, such as exchanging dollars, assets and brands will continue, Alienware is looking to expand the industry by further professionalizing it using these facilities for training and recruitment.
“I don’t think anyone has cracked the formula for a successful corporate and esports partnership, but we’re hoping this will be it,” Azor explained. “If it isn’t, then we’ll try something new.”
Dell’s Campaign Message: ‘Everyone Is A Gamer’
But even with its expansive esports initiatives, Azor asserts that the core of the Dell Gaming brands is to appeal to all types gamers, and part of that strategy is in having fun.
“We’re not trying to go to the moon here; we’re building fancy toys,” Azor explained. “Not every campaign has to be serious, but we try to experiment with things—to be innovative and help partners out.”
The brand launched a series of light-hearted video campaigns last fall featuring celebrities and influencers, including pro wrestler Xavier Woods, Team Dignitas, Nerdist host Jessica Chobot and Twitch broadcaster Grandpa Gaming, who is a retiree and avid gamer. Alienware chose to spotlight Grandpa Gamer as he’s the least famous of the four.
“What we’ve done is create more awareness of him, and his Twitch stream membership has gone up as a result,” said Azor. “I think we’ve also helped legitimize that gaming isn’t one specific demographic nowadays. We’ve seen female gamers skyrocket over the past ten years, and we’ve seen gaming grow up in a lot of ways.”
Azor added, not jokingly, that he wouldn’t be surprised if esports centers were someday built at retirement communities. They wouldn’t compete at the level of 18-year-olds, but he’s certain that the gamers of today will still want to game when they’re retired and have more time on their hands.
“I’m hoping that the campaign will be looked at for what it is, which is that everyone is a gamer,” he continued. “It doesn’t matter how old you are, it doesn’t matter what gender you are, or any of that stuff. The feedback that we’ve seen is that people who get what we’re doing and know who Grandpa Gaming is have been fans of that campaign and of us giving him a stage.”
Azor predicts that 2018 may become milestone year for PC gaming, as computer hardware becomes more powerful and affordable, and more companies take gamers seriously as a demographic to market to. The increased competition means that having a trusted brand will become even more important.
Between net neutrality repeal and looming data privacy laws, marketers must rethink their strategies by reverting to one that is tried and true—audience building.
“Paid media and advertising are fundamentally evolving,” chief content advisor for Content Marketing Institute and best-selling author Robert Rose (Killing Marketing) told AListDaily. “All the breathless deadlines about ad blockers and ad fraud are causing businesses to rethink what they’re doing from an advertising perspective.”
As world governments crack down on the use of citizens’ personal data, marketers may be inclined to worry even more—but audience building through content marketing solves a myriad of problems, Rose explained.
“If you look at all the buzz around General Data Protection Regulation (GDPR), a lot of people are thinking it’s horrible and that they’ll stop email marketing full stop in May because they don’t have it figured out,” he said. “It’s actually really simple to solve and content marketing and the creation of audiences is a really interesting way to solve it.”
Rose said that engaged audiences naturally want to share their information with brands they enjoy hearing from.
“Creating that permission, or the opt-in nature of what GDPR and Canada’s Anti-Spam Legislation (CASL) are really prescribing, is actually easily solved with a marketing approach that says, ‘we’re out to create value through the creation of content that builds an audience that wants to hear from us that wants to be subscribed to what we do.’ We’ve now created a legitimate interest, what they call LI, for communicating with that customer.”
Rose believes that businesses can turn arising challenges into marketing solutions.
“I think [ad blockers, ad fraud and data privacy] provide an immensely strong business case for the creation of owned media experiences that build audiences,” said Rose. “And together, they could be the pivot point for why businesses start to take this a lot more seriously than most do.”
Don’t have time to build your own audience from the ground up? Rose predicts that more businesses will engage in acquisition strategies this year—a risky audience-building trend that seems to be paying off.
While influencer marketing is one method of acquiring an audience, current events may leave some brands—and influencers—feeling discouraged. From marooning customers on an island to filming apparent suicides, the risk of working with internet celebrities is a daunting one. Rose compared traditional celebrity endorsements with internet influencers. With an athlete, author or film star, there is usually a governing body like an agent or association that helps guide celebrity behavior. While many social media creators are now turning to agents and managers, a majority are free to do whatever they like.
“There’s nothing governing [influencer] behavior,” said Rose. “I think what you’re going to start to see is more deals get made with influencers that have structure to them and this year may be the year that it starts to happen. I [also] think you’re going to start seeing what they call ‘acqui-hires’ where those YouTubers or influencers simply get hired or get purchased with an exclusivity where [the hiring company] can provide that governance.”
As brands venture forth into the new year, Rose predicts that challenges will be faced head on through creativity.
“I think we’re going to see a move toward how businesses can get their arms around audiences and the creation of owned media experiences,” said Rose. “Whether they be blogs or television networks or shows or publishing magazines, [businesses need] to be able to reach those audiences that they’re struggling to reach through traditional advertising.”
As we enter the third year of VR, the industry will look to grow its adoption beyond technology and video game enthusiasts to include a more mainstream audience. Enterprise VR will be a major driver for the industry, which may lead to stronger consumer adoption in the coming months. The road to growth will include less expensive and more portable hardware, backed by a broad library of compelling content.
Enterprise To Drive Growth
Stephanie Llamas, SuperData VP of research and strategy, told AListDaily that enterprise will continue growing at a rapid pace, which will help communicate VR’s value. Over $4 billion was invested in VR business applications in 2017 alone, much of which came from R&D.
“The companies looking for solutions are also getting headsets on a whole group of people that might never have otherwise had access to them,” said Llamas. “There are also already a lot of lessons learned from consumer products that have translated into elements of successful use cases.”
“Virtual reality will continue to change the computing landscape with consumers and businesses alike in 2018,” Tony Parisi, global head of VR/AR strategy at Unity Technologies, said in agreement. “With VR investments only increasing, more industries across the board will be developing not only exciting consumer VR experiences but practical business applications as well. With enterprise VR moving from proof-of-concept to deployment, fields like automotive, architecture, creative and others will use VR to create immersive user applications that will change the way things are done.”
On the consumer side, Llamas predicts that VR revenues will increase to $7.2 billion, over twice what 2017 brought in, largely thanks to device penetration and new content that entices a more mainstream audience.
“Already, we are seeing Hollywood, AAA publishers and big-name theme parks get involved, and that will keep increasing,” said Llamas. “Also, China is booming with promise. In November 2017 alone, Xiaomi announced its Mi VR headset has sold 1.2 devices, a massive VR theme park is opening in Guiyang, and HTC Vive’s unveiling of their new premium standalone VR headset, the Vive Focus, to be released in China.”
“VR is in the trough of disillusionment, which is completely natural and expected for every tech cycle,” said Maureen Fan, CEO at Baobab Studios, which makes VR films. “Believers like us and the platforms will do heavy lifting to create the content and make the headsets more accessible to take VR to the mainstream. Narrative creators will experiment even more with interactivity. As new companies enter the market, headset price points will drop, and more creators will experiment with both VR and AR.”
Frank Azor, VP and GM at Alienware, gaming and XPS at Dell, said that the Alienware brand remains committed to supporting VR. He points to how Alienware made all its computers VR capable in 2016, then reduced the price points for some of its systems in 2017 in addition to introducing the Dell Gaming brand.
“You can get a VR-ready notebook for $899. That’s disruptive,” said Azor. “I think by the end of 2018, those prices will probably come down one or two hundred dollars further. We’re committed, and it’s not a question of ‘if’ for us, it’s a question of ‘when.’ When does VR become as mainstream and popular as the internet, smartphones and tablets have become? I don’t know that answer to that, but we think that’s going to happen, and we want to help it happen by doing everything we know how and can.”
VR Is On Course
“In many ways, VR is right where it should be,” said Parisi. “Historically, when you look back, enterprise and business are the first to adopt new technologies because they have the means, resources and problems to solve. We’re seeing that now with VR now across medical, training, entertainment and more. Now that we have some untethered all-in-one VR devices at lower price points, I expect to see a lift this holiday season and the growth trend continue in 2018.”
“In many ways, VR is right where it should be.” — Tony Parisi, global head of VR/AR strategy at Unity Technologies
“I think the headset makers and content developers are doing a great job, with a lot of companies both big and small investing in VR to move the industry forward,” Azor said. “The only way VR will die is if Dell, Oculus, HTC, Valve and content providers stop investing in it. If one of those companies stop, it all starts to crumble unless someone comes in to fill that space.”
Parisi also noted that mass adoption always comes down to compelling content and access to affordable devices. Llamas agreed, stating that VR still needs a “killer app” to draw consumers in by offering a high value proposition—convincing audiences to pick up headsets—followed by more accessibly priced and easier to use VR headsets.
Lower priced wireless VR headsets such as Oculus Go, which is expected to release later this year, may have a major impact on the industry. However, Llamas said that the devices need to offer quality experiences, otherwise they will end up hindering the growth of VR.
“If they do not provide experiences that do not impress consumers, this could pollute consumer expectations for the industry as a whole,” Llamas explained. “Whatever entry point we use to get consumers inside headsets needs to be strong, otherwise they will have a long lasting negative impression that is far more difficult to dispel than if they had none at all. But I think in the end, the response will be positive.”
Both Fan and Parisi remain optimistic about the device’s potential, and they both emphasize content as the key.
“We are excited that Oculus Go will introduce VR to a new group of consumers who are attracted to the lower price point and all-in=one native VR wireless device,” said Fan. It all comes down to having great content to attract consumers, however.”
“I think these devices will have a huge impact on driving consumer adoption of VR, and the proliferation of untethered, all-in-one VR devices like these can only help move us closer to the promise of VR,” Parisi added.
https://youtu.be/h5g0IxhxBoY
Oculus isn’t the only company developing wireless VR headsets. The HTC Vive Focus was announced in November, but release plans are currently limited to China. Additionally, hardware companies including Dell, Lenovo, Acer and others partnered Microsoft for its Windows Mixed Reality program, with each creating their own relatively low-cost and portable headset.
But even with these devices entering the market, Azor affirmed that Dell isn’t looking to disrupt the VR industry with its Dell Visor headset.
“I’ve always said clearly, speaking with HTC, Oculus and other headset providers, that we’re not in the VR headset business. That is not a key or core strategy of ours right now,” said Azor. “Microsoft came to us and said that they were doing a VR headset and gave us an opportunity to build one that could marry our machines better than a third-party headset, and we said ok. It’s just another product offering, and we continue to have strong partnerships with Oculus and HTC.”
