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The Future Of Marketing In An Increasingly Ad-Free World

Michael Brenner

The future of marketing is being debated by leaders in our industry. Some see a shift to more customer-focused content marketing. Others want to continue pushing product promotion content interruptions. Which side are you on?

Ad blocking gets serious

There are approximately 200 million monthly active users of ad blockers globally, according to a recent study by Adobe and PageFair. And a more recent study by Comscore found that 10% of U.S. consumers are already using ad blocking.

Apple’s mobile operating system now allows users to enable ad blocking, so expect to see much higher ad blocker usage this year.

Brands are going out of their way to get and keep consumer eyeballs. Packaged goods giant Unilever, for example, has so far spent $15 million on its “future hunting” Foundry program, in hopes of connecting with marketing-tech startups to earn more consumer attention, loyalty, and ultimately, sales.

Ad blocking is not the only challenge marketers are facing. According to Deloitte, 55% of TV programming is now viewed via DVRs, video-streaming subscriptions, and other sources. And for millennials ages 14 to 25, this number jumps up to 72%.

People are no longer consuming media the same way a mass audience would in the past. They are now customizing content according to their own preferences. Rather than fighting this fragmentation, many companies, like Clorox Co., are embracing it.

Clorox has shifted more than 40% of its media spending to digital. Using programmatic media, the company is able to not only save money but reach people with more relevant ads to convert them into sales. According to Clorox chief marketing officer Eric Reynolds, this is the secret to their steady growth.

Improved targeting is only one part of the agenda. The industry also needs to find more creative, effective ways to reach today’s consumers, either by making it harder for viewers to avoid ads or to get them to opt in.

Increasing popularity of unavoidable ads

Some companies are spending their marketing dollars on media where ads are harder to avoid. For example, GE has shifted money to sports programming like NFL football and NCAA games. Others are pouring their dollars into the least avoidable forms of digital advertising. Pre-roll, search, and mobile newsfeed ads on Facebook and Google are increasingly annoying and impossibly difficult to avoid, even with ad blockers on.

What makes Google and Facebook so attractive for marketers though isn’t just their relative immunity to ad blockers alone; their huge audiences also allow brands to minimize costs while maximizing reach.

Content marketing on the rise?

More marketers are doing content marketing now if they haven’t already. But not everyone is a fan. Procter & Gamble global brand officer Marc Pritchard is one of them. He feels the term content marketing itself is “overused and underdefined.

Pritchard prefers calling marketers’ work “advertising,” since at the end day it’s about influencing consumer purchasing decisions to achieve a brand’s goals. And while I don’t agree with Pritchard that the term “content marketing” is still misunderstood by many in our industry, I don’t think calling it the exact opposite of what it is will help either.

PepsiCo Global Beverage Group president Brad Jakeman, on the other hand, wants the industry to stop using the term “advertising” in favor of “content.” Amen, brother! No one ever asked for an ad to interrupt their content experience. But everyone consumes content.

Love it or hate it, content marketing isn’t going away anytime soon. According to PQ Media, content marketing currently accounts for $67 billion in U.S. spending, and is expected to continue to grow.

It’s easy to imagine why Pritchard feels this way. P&G’s CEO doesn’t hand him a bucket of money to do marketing, especially not content marketing. The CEO of P&G and many other consumer brands wants their marketing team to make ads and coupons. And lots of them. Reach and frequency, baby!

And while they litter the streets and the airwaves with enough pieces of torn up paper to host a ticker tape parade, they “count what they catch.”

To many in the marketing world, reach and frequency is awesome. It is the source of their budget and power. It is easy to buy reach and frequency and shout into the wind. Who cares if no one hears it?

Just don’t ask Pritchard, and countless other CMOs who love their big advertising budgets, to try and figure out engagement.

I once said this to a big brand CMO (right to his face) after he told me they only care about reach: “Well, I guess you can shout into the wind, or you can engage directly with your target audience.” I was suggesting they try and measure engagement.

He didn’t care. He wasn’t moved. He certainly didn’t change. He just went and bought more ads.

Making avoidable ads unavoidable

With the growth of content marketing, it’s often assumed that the creative and production costs associated with content marketing would be higher compared to media spending.

However, a recent survey by Percolate found that 20% of overall marketing budgets are allocated to creative costs, and the biggest driver is not content marketing.

Marketers are now spending more on creative costs for traditional ads to make them more appealing to their target audience so viewers will not avoid them.

New face for brick-and-mortar stores

People can avoid ads, but they still have to buy things. To reach people in store, brands have to find new ways to encourage people to make purchases in stores rather than online.

Revlon, a brand that has relied heavily on traditional advertising and promotion displays in the past, began experimenting with adding beauty consultants to cosmetics counters in shopping malls. The brand hopes to use trial samples to drive purchases at stores. Hey, this feels more like content marketing than advertising. Help your customers and they will be more likely to buy from you.

Even fast-food chains are revamping their physical stores as a marketing tactic to attract more customers. Domino’s Pizza, for instance, has renovated 2,000 stores as part of its “pizza theater re-image,” with openly visible kitchens that allow customers to order and watch their pizzas being made.

Similarly, Wendy’s has opted for a more contemporary look, with fireplaces, flat-screen TVs and low-slung, cushioned chairs. Many grocery stores, such as Kroger, are also getting a face-lift to look more upscale, adding higher-end amenities such as coffee shops and sushi and oyster bars.

The new brick and mortar: Amazon

While e-commerce represents a very small percentage of total grocery sales – estimated at 2%, according to Morgan Stanley – it inevitably still has an impact on margins, particularly in-store promotions. With customers taking fewer trips to the shopping malls, in-store displays are reaching fewer and fewer people.

And 2016 may actually be the year for grocery e-commerce. Morgan Stanley’s consumer survey found that 26% of online shoppers are expected to purchase groceries online this year, up from only 8% a year ago.

This trend explains why many companies, such as Clorox, are dedicating more promotion resources to e-commerce sites and businesses like Amazon and Walmart.com. While one would think that big retail players like Target and Walmart would be consolidating, the reality is that retail is fragmenting too, like marketing and media. Small-format stores are growing in number as a result of urbanization, requiring big companies to reallocate and diversify their resources.

“Native advertising for e-commerce”

P&G is the world’s biggest ad spender for “point-of-market entry,” or sampling. It offers customers samples of its products at times when customers are most likely going to make brand decisions. For example, in the past P&G has provided samples of Pampers diapers to maternity wards and at Lamaze classes.

This growing interest in targeting and reaching consumers with product samples at the right moment, even when they are not shopping at stores physically, has fueled the growth of companies like Exact Media, which specializes in distributing highly targeted sample packages to consumers. In the last year alone, Exact Media’s sales has tripled, with big clients like P&G, Johnson & Johnson, and Unilever under its belt.

Exact Media’s CEO Ray Cao says the idea is like “native advertising for e-commerce.” He explains, “If I’m getting a shirt, and I also get a sample of laundry detergent, it doesn’t feel like I’m getting a random banner ad.”

Maybe P&G isn’t lost forever.

Rethinking product packaging

Coke’s “Share a Coke” labels, which feature people’s names printed on the bottles, is perhaps one of the best examples of customizing packaging to better connect and reach consumers.

Many other brands are also tapping into customized packaging to get closer to their customers. Clorox’s Brita, for example, has partnered with Amazon to sell chip-enabled water filters, which will automatically generate online orders of replacements when a customer’s old filter is almost used up.

Technological advances such as digital printing, conductive inks, Bluetooth-enabled packaging, and near-field communications for mobile phones, are opening up endless possibilities for brands to re-imagine their packaging to better engage consumers and win their loyalty.

The future of marketing focuses on customer value

OK, so traditional marketing tactics are not dead. Many are finding new ways to reach, engage, and convert their target consumers by focusing on providing value. But let’s please not call all this cool stuff “advertising.” It’s just what marketing is supposed to be: helpful!

What do you think? Have you seen any other disruptive trends or ideas that you think marketers should know or try out? Please share your thoughts below!

Photo Source: flickr

To learn how you can start to create content people actually want, contact me here and let’s talk about how we can help, or subscribe here to receive my latest updates.

The post The Future Of Marketing In An Increasingly Ad-Free World appeared first on Marketing Insider Group.

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About Michael Brenner

Michael Brenner is the CEO of Marketing Insider Group, former Head of Strategy at NewsCred, and the former VP of Global Content Marketing here at SAP. Michael is also the co-author of the book The Content Formula, a contributor to leading publications like The Economist, Inc Magazine, The Guardian, and Forbes and a frequent speaker at industry events covering topics such as marketing strategy, social business, content marketing, digital marketing, social media and personal branding.  Follow Michael on Twitter (@BrennerMichael)LinkedInFacebook and Google+ and Subscribe to the Marketing Insider.

Amazing Digital Marketing Trends And Tips To Expand Your Business In 2015

Sunny Popali

Amazing Digital Marketing Trends & Tips To Expand Your Business In 2015The fast-paced world of digital marketing is changing too quickly for most companies to adapt. But staying up to date with the latest industry trends is imperative for anyone involved with expanding a business.

Here are five trends that have shaped the industry this year and that will become more important as we move forward:

  1. Email marketing will need to become smarter

Whether you like it or not, email is the most ubiquitous tool online. Everyone has it, and utilizing it properly can push your marketing ahead of your rivals. Because business use of email is still very widespread, you need to get smarter about email marketing in order to fully realize your business’s marketing strategy. Luckily, there are a number of tools that can help you market more effectively, such as Mailchimp.

  1. Content marketing will become integrated and more valuable

Content is king, and it seems to be getting more important every day. Google and other search engines are focusing more on the content you create as the potential of the online world as marketing tool becomes apparent. Now there seems to be a push for current, relevant content that you can use for your services and promote your business.

Staying fresh with the content you provide is almost as important as ensuring high-quality content. Customers will pay more attention if your content is relevant and timely.

  1. Mobile assets and paid social media are more important than ever

It’s no secret that mobile is key to your marketing efforts. More mobile devices are sold and more people are reading content on mobile screens than ever before, so it is crucial to your overall strategy to have mobile marketing expertise on your team. London-based Abacus Marketing agrees that mobile marketing could overtake desktop website marketing in just a few years.

  1. Big Data for personalization plays a key role

Marketers are increasingly using Big Data to get their brand message out to the public in a more personalized format. One obvious example is Google Trend analysis, a highly useful tool that marketing experts use to obtain the latest on what is trending around the world. You can — and should — use it in your business marketing efforts. Big Data will also let you offer specific content to buyers who are more likely to look for certain items, for example, and offer personalized deals to specific groups of within your customer base. Other tools, which until recently were the stuff of science fiction, are also available that let you do things like use predictive analysis to score leads.

  1. Visual media matters

A picture really is worth a thousand words, as the saying goes, and nobody can deny the effectiveness of a well-designed infographic. In fact, some studies suggest that Millennials are particularly attracted to content with great visuals. Animated gifs and colorful bar graphs have even found their way into heavy-duty financial reports, so why not give them a try in your business marketing efforts?

A few more tips:

  • Always keep your content relevant and current to attract the attention of your target audience.
  • Always keep all your social media and public accounts fresh. Don’t use old content or outdated pictures in any public forum.
  • Your reviews are a proxy for your online reputation, so pay careful attention to them.
  • Much online content is being consumed on mobile now, so focus specifically on the design and usability of your mobile apps.
  • Online marketing is essentially geared towards getting more traffic onto your site. The more people visit, the better your chances of increasing sales.

Want more insight on how digital marketing is evolving? See Shutterstock Report: The Face Of Marketing Is Changing — And It Doesn’t Include Vince Vaughn.

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About Sunny Popali

Sunny Popali is SEO Director at www.tempocreative.com. Tempo Creative is a Phoenix inbound marketing company that has served over 700 clients since 2001. Tempos team specializes in digital and internet marketing services including web design, SEO, social media and strategy.

Social Media Matters: 6 Content And Social Media Trend Predictions For 2016 [INFOGRAPHIC]

Julie Ellis

As 2015 winds down, it’s time to look forward to 2016 and explore the social media and content marketing trends that will impact marketing strategies over the next 15 months or so.

Some of the upcoming trends simply indicate an intensification of current trends, however others indicate that there are new things that will have a big impact in 2016.

Take a look at a few trends that should definitely factor in your planning for 2016.

1. SEO will focus more on social media platforms and less on search engines

Clearly Google is going nowhere. In fact, in 2016 Google’s word will still essentially be law when it comes to search engine optimization.

However, in 2016 there will be some changes in SEO. Many of these changes will be due to the fact that users are increasingly searching for products and services directly from websites such as Facebook, Pinterest, and YouTube.

There are two reasons for this shift in customer habits:

  • Customers are relying more and more on customer comments, feedback, and reviews before making purchasing decisions. This means that they are most likely to search directly on platforms where they can find that information.
  • Customers who are seeking information about products and services feel that video- and image-based content is more trustworthy.

2. The need to optimize for mobile and touchscreens will intensify

Consumers are using their mobile devices and tablets for the following tasks at a sharply increasing rate:

  • Sending and receiving emails and messages
  • Making purchases
  • Researching products and services
  • Watching videos
  • Reading or writing reviews and comments
  • Obtaining driving directions and using navigation apps
  • Visiting news and entertainment websites
  • Using social media

Most marketers would be hard-pressed to look at this list and see any case for continuing to avoid mobile and touchscreen optimization. Yet, for some reason many companies still see mobile optimization as something that is nice to do, but not urgent.

This lack of a sense of urgency seemingly ignores the fact that more than 80% of the highest growing group of consumers indicate that it is highly important that retailers provide mobile apps that work well. According to the same study, nearly 90% of Millennials believe that there are a large number of websites that have not done a very good job of optimizing for mobile.

3. Content marketing will move to edgier social media platforms

Platforms such as Instagram and Snapchat weren’t considered to be valid targets for mainstream content marketing efforts until now.

This is because they were considered to be too unproven and too “on the fringe” to warrant the time and marketing budget investments, when platforms such as Facebook and YouTube were so popular and had proven track records when it came to content marketing opportunity and success.

However, now that Instagram is enjoying such tremendous growth, and is opening up advertising opportunities to businesses beyond its brand partners, it (along with other platforms) will be seen as more and more viable in 2016.

4. Facebook will remain a strong player, but the demographic of the average user will age

In 2016, Facebook will likely remain the flagship social media website when it comes to sharing and promoting content, engaging with customers, and increasing Internet recognition.

However, it will become less and less possible to ignore the fact that younger consumers are moving away from the platform as their primary source of online social interaction and content consumption. Some companies may be able to maintain status quo for 2016 without feeling any negative impacts.

However, others may need to rethink their content marketing strategies for 2016 to take these shifts into account. Depending on their branding and the products or services that they offer, some companies may be able to profit from these changes by customizing the content that they promote on Facebook for an older demographic.

5. Content production must reflect quality and variety

  • Both B2B and B2C buyers value video based content over text based content.
  • While some curated content is a good thing, consumers believe that custom content is an indication that a company wishes to create a relationship with them.
  • The great majority of these same consumers report that customized content is useful for them.
  • B2B customers prefer learning about products and services through content as opposed to paid advertising.
  • Consumers believe that videos are more trustworthy forms of content than text.

Here is a great infographic depicting the importance of video in content marketing efforts:
Small Business Video infographic

A final, very important thing to note when considering content trends for 2016 is the decreasing value of the keyword as a way of optimizing content. In fact, in an effort to crack down on keyword stuffing, Google’s optimization rules have been updated to to kick offending sites out of prime SERP positions.

6. Oculus Rift will create significant changes in customer engagement

Oculus Rift is not likely to offer much to marketers in 2016. After all, it isn’t expected to ship to consumers until the first quarter. However, what Oculus Rift will do is influence the decisions that marketers make when it comes to creating customer interaction.

For example, companies that have not yet embraced storytelling may want to make 2016 the year that they do just that, because later in 2016 Oculus Rift may be the platform that their competitors will be using to tell stories while giving consumers a 360-degree vantage point.

For a deeper dive on engaging with customers through storytelling, see Brand Storytelling: Where Humanity Takes Center Stage.

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About Julie Ellis

Julie Ellis – marketer and professional blogger, writes about social media, education, self-improvement, marketing and psychology. To contact Julie follow her on Twitter or LinkedIn.

Robots: Job Destroyers or Human Partners? [INFOGRAPHIC]

Christopher Koch

Robots: Job Destroyers or Human Partners? [INFOGRAPHIC]

To learn more about how humans and robots will co-evolve, read the in-depth report Bring Your Robot to Work.

Download the PDF (91KB)

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About Christopher Koch

Christopher Koch is the Editorial Director of the SAP Center for Business Insight. He is an experienced publishing professional, researcher, editor, and writer in business, technology, and B2B marketing. Share your thoughts with Chris on Twitter @Ckochster.

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What Is The Key To Rapid Innovation In Healthcare?

Paul Clark

Healthcare technology has already made incredible advancements, but digital transformation of the healthcare industry is still considered in its infancy. According to the SAP eBook, Connected Care: The Digital Pulse of Global Healthcare, the possibilities and opportunities that lie ahead for the Internet of Healthcare Things (IoHT) are astounding.

Many health organizations recognize the importance of going digital and have already deployed programs involving IoT, cloud, Big Data, analytics, and mobile technologies. However, over the last decade, investments in many e-health programs have delivered only modest returns, so the progress of healthcare technology has been slow out of the gate.

What’s slowing the pace of healthcare innovation?

In the past, attempts at rapid innovation in healthcare have been bogged down by a slew of stakeholders, legacy systems, and regulations that are inherent to the industry. This presents some Big Data challenges with connected healthcare, such as gathering data from disparate silos of medical information. Secrecy is also an ongoing challenge, as healthcare providers, researchers, pharmaceutical companies, and academic institutions tend to protect personal and proprietary data. These issues have caused enormous complexity and have delayed or deterred attempts to build fully integrated digital healthcare systems.

So what is the key to rapid innovation?

According to the Connected Care eBook, healthcare organizations can overcome these challenges by using new technologies and collaborating with other players in the healthcare industry, as well as partners outside of the industry, to get the most benefit out of digital technology.

To move forward with digital transformation in healthcare, there is a need for digital architectures and platforms where a number of different technologies can work together from both a technical and a business perspective.

The secret to healthcare innovation: connected health platforms

New platforms are emerging that foster collaboration between different technologies and healthcare organizations to solve complex medical system challenges. These platforms can support a broad ecosystem of partners, including developers, researchers, and healthcare organizations. Healthcare networks that are connected through this type of technology will be able to accelerate the development and delivery of innovative, patient-centered solutions.

Platforms and other digital advancements present exciting new business opportunities for numerous healthcare stakeholders striving to meet the increasing expectations of tech-savvy patients.

The digital evolution of the healthcare industry may still be in its infancy, but it is growing up fast as new advancements in technology quickly develop. Are you ready for the next phase of digital transformation in the global healthcare industry?

For an in-depth look at how technology is changing the face of healthcare, download the SAP eBook Connected Care: The Digital Pulse of Global Healthcare.

See how the digital era is affecting the business environment in the SAP eBook The Digital Economy: Reinventing the Business World.

Discover the driving forces behind digital transformation in the SAP eBook Digital Disruption: How Digital Technology is Transforming Our World.

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About Paul Clark

Paul Clark is the Senior Director of Technology Partner Marketing at SAP. He is responsible for developing and executing partner marketing strategies, activities, and programs in joint go-to-market plans with global technology partners. The goal is to increase opportunities, pipeline, and revenue through demand generation via SAP's global and local partner ecosystems.