Marketers Increasing Spend On Stories, Amazon Ads This Holiday Season

In a report by Kenshoo and ClickZ, holiday spending plans were analyzed to see where marketers’ priorities actually exist and how they are changing this year.

Google, Facebook and Instagram, remain at the top of the list in terms of spending, said the marketers surveyed. Both Google and Instagram were up from 2017, while Facebook had a slight dip of -3.4%.

The biggest jump comes from YouTube, up 7% from last year. Which falls in line with trends, according to eMarketer, “YouTube will generate $3.36 billion in net US video ad revenues, up 17.1% over last year.”

Other formats like Amazon Ads and Instagram and Snapchat ‘Stories’ are on the rise.

“Advertisers are starting to notice and aren’t letting the Stories opportunity slip by. 38% of brands state that they have included Facebook Stories in their holiday marketing plans and 37% have included Instagram Stories, making these two of the most popular new advertising opportunities for the 2018 holidays,” the report says.

Amazon ads, the third biggest digital ad platform after Facebook and Google, are very much considered insurgent in the digital advertising world. It’s no surprise then, that this holiday season marketers will be increasing their Amazon ad spend.

“Advertising on Amazon will increase significantly over the 2018 holidays compared to 2017… According to ClickZ data, for those who do plan to advertise on Amazon this holiday season, advertising during special occasions seems to be a top priority. Brands see Amazon ads served to shoppers in closer proximity to their final purchase click as the perfect place to boost revenue when those shoppers are in a buying mood for the holidays.”

According to analysts, Amazon’s ad platform will surpass both Google and Facebook in revenue by 2021.

ClickZ and Kenshoo’s report is based on a survey of more than 300 marketers. Participants were asked to identify where their brands will be spending money this season, how it compares to 2017 and what new media formats are being applied.

Intel VP Alyson Griffin: “I’m Laying An Umbrella Story For Broad [Brand] Awareness”

Intel is undergoing a transformation. For half a century, the brand has maintained a reputation for its computer processors. As the tech giant emerges from its chrysalis a provider of everything from AI to 5G, it leaves Intel’s marketing team with a challenge that, ironically, can’t be solved with technology alone.

Alyson Griffin, Intel’s VP of global brand marketing, sat down with AList to explain this dynamic shift and how one of humanity’s oldest practices—storytelling—is helping to advance technology.

What challenges do you face as Intel repositions itself as a brand?

We just celebrated our 50th anniversary this summer. From an outbound marketing perspective, we were tied very explicitly to a B2C motion and our PC

for say, the last 47 of those years. The management team understood that while the PC market is still critically important, we’re growing as a company toward a more data-centric part of our business.

There are these territories [5G, AI, VR, etc.], where compute power and heavy performance and power are critical but they weren’t places where we were talking about ourselves externally.

How do you shift focus without sacrificing what Intel is known for?

We still do have a very big marketing focus not only directly from Intel but with our OEM partners on our PCs whether it’s gaming, PC innovation, etc. The good news is that we still have that and do that with our own dollars as well as those of our partners. What we’re doing is expanding the aperture of the Intel brand and my role is to go think about business transformation examples that inspire or have human interest and impact.

Intel doesn’t have an awareness problem anywhere in the world. What we do have is a relevance change. People are unsure about how and where we’re relevant beyond the great stronghold we have from a PC perspective. In order to move this to a data-centric, more business [focus] we’re looking for these really great stories.

How do you use storytelling across B2B and B2C marketing strategies?

The strategies align. For us, our single-minded brand proposition is making the impossible possible. From a brand perspective, we’ve pivoted to demonstrating these transformational solutions that have human impact and interest that are AI for good, etc. where you capture the consumer’s imagination.

To get into the nuts and bolts of our strategy here, I’m laying an umbrella story for broad awareness and interest that has technology pillars that actually can be pulled through all the way down to demand gen because I’m talking about a solution that’s real, current and on the truck today. I can do the baton toss, if you will, to my counterparts in the business unit marketing team.

The pivot happens when we get an interesting and broad enough story that can pass very easily to the business units who can pivot to their target and bring it to life.

[For example], Intel is restoring the Great Wall of China. They came to us for computing power but in talking with them, Intel realized that they could solve multiple problems.

[Griffin explained that they use drones to survey the wall and create 3D models. AI analyzes the visuals and helps anticipate needs, calculating down to the millimeter.]

Even if you aren’t interested in Intel or tech… say you’re a business that [can’t imagine] what Intel would be doing beyond a PC, we’re trying to paint an image of all these possibilities and demonstrate with real technology solutions that are available in the market of how businesses or organizations can rethink what’s possible.

How has your job changed over your career?

I started in the early ’90s at a PR firm so I worked with reporters all the time. My job was to stand at a fax machine—I have to explain to my children what the heck that is—and fax 500 press releases to various reporters because there was no consolidation. All we had to do back then was have a price and a speed [of a new computer] and it would 100 percent get covered because it was so amazing.

Part of the challenge for me over the years is that I can’t just call up any old reporter and say, “it’s five dollars less and 10 times faster, go write about it.” I’ve had to get more creative about storytelling that includes some kind of technology angle. My world has changed dramatically since I first started.

Where do you find inspiration?

I’m inspired by the stories of our customers, to be honest. I work closely with the sales team and hear amazing stories about things like precision medicine and curing cancer. There are so many things that our customers and partners are doing and it’s exciting.

It’s like a buffet before me and I get to pick one, focus on it and build out a great story. I think about our target and how I make it exciting and accessible and real and inspirational for the world. I have to say that I get a lot of personal satisfaction out of that.

CMOs Find Relationship Marketing Strategy Hindered By Data Management

Fostering customer relationships is, unsurprisingly, a priority for today’s chief marketing officer. A new study by CMO Club reveals pain points in data management and a lack of custom integration.

CMO Club commissioned a study by Selligent Marketing Cloud that focused on consumer-first martech. A survey of 69 CMOs, including those from BBVA Compass, Office Depot and others, found that data providers and marketers aren’t always on the same page. The results of this study were published in a guide called “Consumer-First MarTech: Using Consumer Insights To Unify Marketing Technology Decisions.”

Relationship marketing was named either the most important or one of the most important team functions by 62 percent of CMOs. Personalization plays a vital role in this effort, and two-thirds say that speaking to customers in a more relevant way is a top automation goal for 2018.

In order to accomplish this, CMOs rely on their martech stack but cite frustration. For example, 42 percent said that customer data management is the most difficult element of the customer relationship marketing process.

Working with the “big five” marketing automation vendors doesn’t necessarily alleviate problems, either. In fact, 47 percent of users had issues with data compared to 25 percent of marketers using other vendors.

CMOs cite a lack of custom integrations as a major complaint regarding the “big five” vendors. Fifty-seven percent of marketers rated these vendors “below average” at custom integrations and just over half (54 percent) rated them “below average” at custom feature development.

For this reason, a trend has emerged among some of today’s leading marketers. They refuse to box themselves into one martech solution or simply decide to build their own. The CMO Club report offers three case studies in the report that show how companies CRM use differs.

Office Depot uses a hybrid approach to customer support that integrates legacy and new technologies to achieve the desired result.

“In our case, we combine best-of-breed technologies that are available across the marketplace, and we don’t tend to buy into any specific ecosystem because we feel it’s limiting and frankly, full of risk,” explained Office Depot chief retail officer Kevin Moffitt, who runs digital marketing in addition to ecommerce.

Luxury jewelry brand Tacori stopped using cloud service providers altogether and is building its own CRM in order to stay agile in a changing consumer environment.

“It lets us stay really nimble, it lets us stay within budget, it lets our team stay intelligent instead of having to outsource subject matter experts,” said Tacori SVP of marketing and PR Michelle Chila Adorjan. “And quite honestly, because technology changes, what happens right now is going to be very different from six months from now, and will be different 18 months from now. It lets us be a little disruptive as a smaller player.”

CMO Club’s report echoes sentiments expressed in a recent study by the Harvard Business Review (HBR). While 58 percent of respondents named CRM as one of the top three technology investments for their organizations, only 36 percent report significant returns.

Domino’s AR Pizza Chef Turns Visualization Into Ecommerce

Domino’s New Pizza Chef adds augmented reality (AR) to the pizza-customization and ordering process, allowing users to visualize and order virtual pies. The new AR experience launched on Domino’s mobile app this week and continues the brand’s ongoing investment in consumer technology.

Consumers with the Domino’s mobile app can now build and preview a pizza in AR. New Pizza Chef lets users select their crust, cheese and swirls, then drag and drop remove virtual toppings. Certain toppings will trigger animated characters, such as a hula dancing pineapple. Setting the pizza on fire cooks it on the spot.

There are over one billion possible combinations in Domino’s New Pizza Chef, the brand announced. Once they find the desired combination, users can have their AR creations delivered IRL.

It was important to the company, however, that finished products matched the user’s AR creation.

“Making sure each ingredient shown reflects the weight we use in store means that the pizza a customer receives looks the same as the one they created—and that makes for a more satisfied customer,” Domino’s group chief marketing officer Allan Collins said.

This isn’t Domino’s first foray into AR pizza ordering. In April, the brand launched a Snapchat campaign that allowed users to take photos with virtual ‘zas and order delivery without leaving the app.

In fact, Domino’s has traditionally been an early adopter of technology, integrating the latest gadgets into their marketing strategy. Hungry customers have been able to track their pizzas for a decade now. The brand introduced “Dom,” an AI pizza ordering assistant in 2014 and earlier this year, began testing it as a replacement for human phone orders.

Other efforts have included a Facebook chatbot and its AnyWare initiative, which allows users to order a pizza just by texting a pizza emoji.

“Innovations such as the New Pizza Chef with Augmented Reality are important as they help us to continue to drive online sales,” said Domino’s Group chief digital and technology officer Michael Gillespie. “And, with up to two million items sold online in one week, we know it’s important for us to always be making the online ordering experience more seamless, rewarding and memorable for our customers.”

Domino’s CEO J. Patrick Doyle hopes that the brand will become 100 percent digital in the future, so it looks like Gillespie and his team are going to stay busy.

Boingo Wireless CMO Dawn Callahan Explains The Vital Role Of Data

Today’s chief marketing officer has to be a jack of all trades and master of all. Boingo Wireless CMO Dawn Callahan has watched this role evolve over the past 20 years from an age of tedious AB testing to real-time data analysis.

At Boingo, Callahan is in charge of consumer-driven revenue and leads marketing across all lines of business, as well as corporate marketing, branding and PR. Callahan sat down with AList to explain the role that data plays in today’s marketing world and why trust is a CMO’s biggest challenge.

How has the nature of your work changed in the last five years?

A lot. (laughs) The biggest thing for me is investor relations. You’re still a storyteller but now you’re telling a story to the analysts, investors, that sort of thing. Every quarter you have to find a new way to tell that story.

What are the most important qualities of a modern marketer?

There are three things: they’re intensely curious, they’re great storytellers, and the third thing is that they’re data-driven.

Typically when we see a CMO, [people think you’re] in charge of the brand and advertising. I run 50 percent of our company’s business. Marketers today almost have to be a CTO or CEO. In fact, I recently read an article saying that CMO is the next step to CEO. That’s definitely true from where I sit. More than anything else, marketers are having to become massive data experts.

When I think about how I started my career, a lot of it took place in direct mail. That’s the original data-driven [strategy]. We’re doing that but now it’s on a digital platform and it’s so much faster. Synthesizing that data depends on what you’re trying to do. For example, if you want to track a customer journey from beginning to purchase, that’s hard to do—it doesn’t matter how many systems you have in place. But if you talk about using data for things like UX design and A/B testing, [that’s different]. Going back to when I was doing direct mail, you sent out a lot of A/B tests and it took forever. Today, you can do all that stuff in literally 24 hours so you can iterate, iterate, iterate.

What is the biggest challenge facing marketers today?

Trust is the biggest issue that marketers have today. We’re in this environment where news is fake and truth isn’t truth, and so people don’t know what to trust anymore. We also live in this world that is increasingly online so it’s dehumanized in a way. For example, we don’t go to a brick and mortar [where] you can come up to me, see my face and have an authentic relationship with a real person. As we do less and less of that, there’s less human contact and less trust. I have Sirius in my car and I can’t go five minutes without listening to a commercial that’s by a founder, [telling the story] of why they founded the company, etc. It’s cool, but it’s because we have to create trust. One of the ways we do that is by trying to personalize the company. Trust is the biggest thing we all have to worry about right now.

Where do you find inspiration?

It happens everywhere when you’re open to it. For me, it’s definitely art, music, commercials, film or someone wearing something on the street. You can’t stop kicking those ideas around because the cool idea [can come from] idea number 12. We start with a Pendleton shirt and we end up with the patch that goes on a hat. You have to keep going. We’re lucky to have an in-house agency.

Do you have a preference for working with an in-house agency?

Our creative services team does all of our artistic output. But, if we have to do an activation, we’ll work with an activation company because they’re no way we’re going to hire 40 people to go work on it. Depending on what we’re doing, we’ll definitely pick up people—but I cannot imagine working with an outside agency after bringing someone in-house.

For Mobile Video Ads, CTAs Are Critical For Fostering Consumer Relationships

Consumers are naturally more interested in mobile video ads that feature a call to action (CTA), IAB found in a new study. This extra thought and attention, they asserted, lays the groundwork for a direct relationship with consumers.

The Interactive Effect: CTAs in Mobile Video Shoppable Ads” included 70 participants from the Austin and Chicago areas. Respondents were allowed to choose from a variety of short film video content to watch, during which they were exposed to various ads. IAB used biometrics, eye-tracking and surveys to gauge interest both on the conscious and subconscious levels.

The biggest takeaway from IAB’s lab study was that consumers are naturally more interested in ads that feature a “Learn More” call to action prompt. Four types of CTAs were tested—Learn More, Shop Now, Sweepstakes and no CTA as a control.

Ads that invited users to learn more received more interaction and were considered to be of higher quality by study participants. These ads also yielded higher purchase intent than other categories—67 percent, compared to 62 percent of ads with no CTA. Based on heart rate, attention increased after interacting with Learn More ads. While engagement increased upon first exposure to all types of ads, it continues to be active much longer for those that offer additional information.

Shoppable ads showed promise, IAB observed, noting that consumers liked the concept of shopping inside the ads themselves. Among a series of “agree or disagree” statements, the most popular was, “I like the convenience of choosing to get more information about a product advertised without leaving the page,” followed by “It’s convenient to be able to buy directly from an ad.”

Since respondents were able to choose which content they viewed, no ad targeting was used in this study. However, a combination of shoppable ads with focused efforts could prove beneficial.

“These findings indicate that customers note the ability to shop or learn more right from the onset,” said Sue Hogan, senior vice president of research and measurement at IAB. “The great promise for shoppable ads, then, is not only the immediate ability to capture sales but also in smart retargeting.”

Irrelevant Brand Messages Can Lead To Permanent Disconnect

Consumers only want to see relevant brand messages but are reluctant to share online browsing data to get it. According to a new study by Opinion Matters and Emarsys, two out of five consumers would not purchase from a brand again if they receive irrelevant marketing materials.

Opinion Matters surveyed 2,002 UK consumers on behalf of Emarsys in August 2018. The common consensus among respondents was that in order to gain their loyalty, marketers must cater messages directly to them. Only six percent said they already receive clearly relevant offers from brands.

Irrelevant messages are simply being ignored and deleted by 84 percent of respondents, who are not afraid to wipe their hands of a brand thereafter. More than half—66 percent—said they would ignore all future correspondences and 40 percent said they would not purchase from that brand again.

Marketers agree that personalization is vital in today’s world, but accessing the data to fulfill that need can be easier said than done. Opinion Matters found that just five percent of consumers would be willing to share their browsing data with an online retailer. Nearly a quarter said they wouldn’t share any information at all.

The gap between expectation and willingness to share data stems from a simple lack of understanding. While 82 percent were aware of the use of AI in the shopping experience, only a third realized that technology is used for sending personalized offers. Views on AI are mixed, as well. Nearly half of the respondents were happy with intelligent technology as it relates to choosing discounts, marketing materials and which products match their preferences.

The good news is that consumers still very much want brand offers. Loyalty-based discounts were named as a top reason for making repeat purchases, as were bespoke discounts based on a past purchase. Echoing their desire for more personalization, 41 percent said that catered messages would inspire them to buy again.

“As this study shows, consumers aren’t generally fussed about how they are marketed to,” said Emarsys CEO Ohad Hecht. “Ultimately, they want a shopping experience which provides value, both in the product or service purchased, and the act of purchasing itself.”

With #SeeHer, Meredith Corp. Looks To Data For Equality And Accountability

The integration and utilization of data is a key discussion throughout the marketing community, mainly with the aim of resonating with consumers. But that data can also be used to affect social change at scale.

With the aims of using that data and technology for good, The Association of National Advertiser’s #SeeHer initiative has created the Gender Equality Measure, or GEM, that will call-out unconscious bias in ads and media.

While 75 companies representing $50 billion in marketing spend have signed on to support #SeeHer, the Meredith Corporation is having their brands reviewed by the methodology to become GEM certified and plans to “put its vast resources and brand power behind the #SeeHer movement” and will “promote the partnership across all platforms.”

Meredith Corporation expects this partnership to kick off in December and to expand in scope in 2019. For a media company whose reach extends to 100 million consumers, this will put pressure on the media industry at large to follow suit in being more conscious of representation.

“Women influence or make 85 percent of all purchase decisions. As a company that connects and engages with 110 million American women, coming alongside #SeeHer is the right thing to do socially and for the bottom line,” said Alysia Borsa, chief marketing and data officer, Meredith Corporation in a press release.

#SeeHer launched in 2016 with the goal of improving representation of women throughout media by 2020.

This is not the first time data is being utilized to understand gender representation in media and advertising. Actor Geena Davis, who is a member of the advisory board for #SeeHer, has long championed the cause under her organization The Geena Davis Institute on Gender in Media.

Last year, research compiled from the Institute’s Inclusion Quotient tool had revealed that twice as many men as women appeared in TV ads, enjoyed four times as much screen time, and had three times as much dialogue—a significant gap in gender representation.

Jägermeister Reveals Halloween Fortunes With AR Tarot Cards

Jägermeister is using augmented reality to celebrate Halloween this year with virtual tarot cards on Snapchat. “Divine the Darke” invites users to unlock AR tarot cards and flip them over to reveal their “cocktail fate.”

Special Jägermeister Snapcodes have been placed in bars and stores this holiday that when scanned, temporarily unlock a tarot card experience. An augmented reality tarot deck will be displayed inside the user’s camera with themes like “The Stag,” “The Ritual,” “The Hunter” and “The Mirror.”

Flipping the card over reveals a glimpse into the future in the style of an alcoholic fortune cookie with statements like, “Trust in your instinct and follow your gut.” Each card also recommends a method for consuming Jägermeister, such as a chilled shot or in a cocktail.

Each AR experience is unlocked for one hour before the code can be scanned again. Doing so allows users to view new cards, fortunes and drink suggestions.

Halloween is one of the biggest holidays for Jägermeister, which reports a 34 percent sales lift during this period. Last year in the UK, the hunter-themed drink launched a Saxon horror-story themed campaign across its social channels. Characters called “The Cursed Four” were featured in a series of videos online and recreated in the form of limited-edition miniatures.

In the US last year, Jägermeister launched print-out origami masks that looked like a skull, bat or stag—the latter being a nod to its mascot.

This isn’t the first time alcoholic brands have employed augmented reality to engage consumers of legal drinking age. Earlier this year, Skybound Entertainment released a special Walking Dead wine featuring AR labels that animated when viewed inside an app. The practice of AR labels has increased in popularity for beer and wine brands, especially those viewed through an app like Treasury Wine Estate or Living Wine Labels.

Jägermeister, amid increased competition from other flavored shot brands, recently partnered with the NHL to become the hockey league’s official shot. The brand sold 1.66 million cases in the US last year, according to Impact Databank.

The State Of Advertising In 12 Charts

Without a doubt there have been some major recent shifts in advertising. This year, the industry has encountered growth in expenditure, an emphasis in the mobile medium and a focus on devoted customers.

Here is a look at 12 charts reflecting the current state of advertising.

Global Look At Advertising

At the start of 2018, WARC, a marketing intelligence service, predicted a global growth of 4.7 percent in advertising expenditure for the year—a total of $572 billion. The company concentrates on the spending of 96 markets. The rise is pushed by major events like the PyeongChang 2018 Winter Olympics, FIFA World Cup and the US mid-term elections.

WARC also attributes the global spending increase to the reduced dollar volatility in emerging marketing. Lower volatility means that a security’s (stock, bonds, money market) value does not fluctuate dramatically, and tends to be steadier.

It was estimated North America would see a five percent growth and Asia-Pacific a six percent increase in spending. On the opposite end, The Middle East and Africa will continue to decline its ad spend at -4.1 percent, however at a slower pace than past years.

Overall, it’s an increase in ad spend compared to 2017 when the global growth only rose three percent.

Zenith Media had a similar 2018 advertising expenditure forecast. They predicted a 4.6 percent growth reaching $579 billion. However compared to the nominal GDP, ad spending will not evolve as quickly.

The United States holds the number one spot for top ten advertising markets spending $197 million in 2017 and an estimated increase to $217 million by 2020. Between 2017 and 2020 it’s predicted it will stay quite stable.

The major switch will be Australia bumping France down to take eighth place, and Indonesia will oust Canada to take tenth.

Yet, when examining the various regional blocs, Eastern and Central Asia will have the largest forecast growth of 8.8 percent from 2017-2020. It’s a big turn considering it was the area most affected by the financial crisis of 2008-2009.

Mobile Ad Takeover

Unsurprisingly, the medium with the biggest ad spend increase is internet advertising (desktop and mobile). By 2020, global advertising expenditure for mobile ads will increase to 29.3 percent.

Like any business, it’s typically all about revenue. The Nielsen Company estimates that total media revenues for 2017 decreased three percent from 2016, but digital ad revenue grew 21 percent. Mobile ad revenue rose 36 percent earning $49 billion in 2017.

Until this year, television was the leading advertising medium. The rapid growth of paid search is one of the culprits to its decline in popularity.

Print ads don’t have a bright future. The medium is losing its market share and continues to decline at an average rate of five percent and six percent a year.

In two years, its expected magazines will only have around a 3.8 percent market share.

Amazon Will Not Only Be The Ecommerce King

It seems like 2018 will be the year Google and Facebook’s share of the U.S. digital ad market will decline. It’ll be a first for these giants. According to eMarketer, the percentage of digital ad spending on these two companies will slowly dip even though their revenue is still growing.

The companies are just not keeping up with the digital ad environment and Amazon appears to be getting stronger with ad revenues expected to climb 63.5 percent exceeding two million dollars.

The report estimates Google’s share will decline to 37.2 percent from 38.6 percent in 2017, and Facebook’s will dip from 19.9 percent to 19.6 percent.

Ad Blocker Challenge

Many consumers will avoid ads at all costs and more internet users—about 30.1 percent—will block them in 2018, up from 27.5 percent last year. It means advertisers and publishers need to find creative ways to target their audience.

So what steps are they taking?

One method is publishers have set up a way to detect whether a visitor has an ad blocker enabled. Next, they deliver a message to those users to persuade them to either completely turn off their ad blocker or at least whitelist (a list of acceptable sites) that publisher.

You’ve probably seen these messages. They usually try to compromise with consumers to make them understand the ads are how publishers pay bills.

Research suggests most people simply go elsewhere when faced with the barriers. In 2016, PageFair—an anti-ad-blocking provider—reported that 74 percent of US ad blocking users polled leave websites when encountering an ad block wall.

Loyal Customers, Marketing Analytics, Seize Budget Lead

In a survey conducted by Gartner, it was discovered chief marketing officers are “playing it safe” by putting most of their budget (63 percent) on customer retention and growth instead of giving that money to acquiring new ones (27 percent).

It requires more capital to earn a new customer, but a company should still aim towards profitability.

This shift coincides with how the budget has been restructured.

Marketing analytics takes priority—out of 13 marketing capabilities—in marketing expense budgets. In 2017, 9.2 percent was allocated, resulting in a jump from its number four spot the year prior. The chart also reinforces the importance of web, 8.8 percent of the budget, and digital ads, 8.6 percent.

This turn comes as leaders must make the most out of existing programs and refocus on ROI by centering efforts on the right customers.

However, it’s not all about loyal customers and being stagnant when it comes to new ideas and risk-taking.

The survey discovered marketing innovation secured 10 percent of capital from the total marketing expense budget. Additionally, 23 percent of CMOs have a fixed annual innovation budget.

Companies don’t want to fall behind and usually innovation programs are handled by internal organization concerns.