Category Archives: Advertising

Programmatic Advertising should be Slave to The Brand and Performance

“Programmatic is gluten of advertising”

-Jimmy Kimmel

I was speaking couple of weeks back at Marketing Interactive Performance Marketing Confence. It was a really great event and I was happy that I was able to speak from creative angle which quite often gets neglected in programmatic discussion.

Marketing-Interactive Digital Performance Marketing 2017

Marketing-Interactive Digital Performance Marketing 2017

I talked about the state of programmatic, but as in this post I want to highlight three things from the speech that every brand should take into account:

  1. Creativity has to become more ingrained to programmatic advertising.

Creative variables constitute over 50% of programmatic effectiveness, but do you focus 50% of your programmatic efforts to the quality of creative? Over half of the marketing budget is at stake and still many brands are cutting corners when doing creatives to programmatic. Horrible quality will lead to bad performance and will also contribute to ad-blocking (which has exploded in Asia) When same ad reaches person over 40 times a month, sales can actually start to decline.

Also sometimes it seems that programmatic specialists have totally forgotten the importance of strong brand. You can optimize as much as you want, but if people do not recognize and know your brand that tactical tweaking amounts to nothing. Marketing automation will not replace the value of strong brand. And strong brands are built from great user experience and emotional connection.

  1. Programmatic quality will be the utmost importance.

10.9 billion will be wasted on low-quality display ads by 2021. That is over 1/3 of programmatic spend. Above-mentioned creative quality is important element in the quality, but there has been even more fundamental problems within programmatic industry:

  • Viewability (or lack thereof)
  • Ad and click fraud
  • Bots
  • And the poor creative quality (mainly horrible quality and invasive display ads have driven people to block all advertising

Many have been benefiting from ad fraud, whether they have been publishers, buyers and media agencies. Hell, even extremists have done 318K from brands with ads placed to their extreme content. Who have not benefited at all from ad fraud?

Brands and their consumers.

Within the next decade, fake Internet traffic schemes will become the second-largest market for criminal organizations behind cocaine and opiate trafficking. Media (and other) agencies would likely not push dope (maybe consume it) or kill people but they have been happily working indirectly with same criminal organizations.

Industry has to clean its act.

Luckily the quality has become a conversation topic and brands start to realize that if your placement is too cheap it is probably too good to be true. Industry giants are improving as well. Programmatic direct deals in APAC have grown more than 65%. It is everyone´s responsibility to demand and offer quality placements.

  1. Programmatic is not just display advertising

I think it’s a dying industry. The idea that buying a 250 x 250 square display ad is effective, is false, you’re more likely to get bitten by a shark than click on one of those ad units.

– Matthew Oczkowski (Cambridge Analytica) 

Display ads will not be remembered as the best advertising innovations in the world (unlike TV ads and search advertising). 60% of banner clicks are accidental and 90% of them are bots. You don´t need to be mathematician to realize that it is really small percentage of people who are really clicking. And the percentage is not really going up. The world´s first banner ad had 44% CTR and now we have gone to fraction of that (0.16% globally)

However, some are still clicking and they are still bringing results. Display ads are necessary transition for companies to drive performance and learn to operate programmatically.

Programmatic marketing is about machines buying, serving and optimizing advertising (any kind of advertising). Eventually majority of buying will be programmatic, because machines are doing it better than we are. There is probably certain iconic placements that will never become programmatically bought or sold, but they will be small minority. For anything else machines will do it more effectively, accurately and faster. This applies also to actual creatives. If robots can already beat people at GO, conduct entire orchestra or write articles, it would not be the biggest of challenge to create above-the-average display ads. And if you are worried about machines stealing your job, read below quote from this great and acclaimed thinker:

”If machines can do the job, it´s not really a job you want to do”

– Riku Vassinen

Programmatic is still unfortunately in stage of not having unified definitions. When having discussion with different stakeholders of programmatic, it feels like the old parable of blind men touching elephant from different angle. Your view of elephant is totally different based on are you touching its nose or backside. Same thing with programmatic. Some are talking about buying, some about tools, some just about display advertising, some about multiple creative variations etc.

We need to strip away the unnecessary “magic dust” surrounding programmatic and agree on basic definitions. Unfortunately, it has been tainted by snake oil salesmen, who actually benefit of having people confused about what programmatic truly means. They have been benefitting on making it more complicated and less transparent than it should be.

Because at its core, programmatic is a great thing. It is about reaching right audience with right creative on right context and with right price. So essentially it is what advertising has always been. Now we are just able to do it with more precision.

Programmatic advertising is not means to the end. It should always serve as slave that helps to drive stronger brand and better performance.

Advertisements
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Video Killed The Digital Star: 6 Key Online Video Trends

Last Monday I was speaking about the latest Video marketing trends. Visual storytelling will be more and more important and naturally video is the most important way to tell visual stories. Video is growing rapidly and currently there does not seem to anything stopping this rapid growth:

  1. Video just keeps growing

We are living in visual age. Picture tells more than thousand words and video tells more than thousand pictures. In next three years video will account 79% of all Internet traffic. Businesses are expected to spend nearly $13 billion on video marketing in 2018. Lots of the discussions about video is focused on entertainment, but we tend to forget that YouTube is the world´s second largest search engine. 75% of consumers believe that a video describing a service is important and 25% will lose interest if your company is not explaining through video.

  1. Catching the attention is more difficult than ever

1/3 of of all YouTube videos have less than 10 views. That is quite pathetic and showcases the wide gap between hits and misses. Within top 10 most watched videos in 2016, there was only one ad (Nike The Switch). Of all the top 10 most watched ads, half were actually Superbowl ads. You are not only competing with other brands, you are competing of the time of your audience.

  1. It is not mobile-first, it is mobile-only

Mobile video is growing 25%, whereas desktop video consumption is declining for the first time ever. People are already consuming video 36 minutes on their mobile devices compared to 18.5 minutes on non-mobile devices. This mobile shift will affect your video production: Have you thought about vertical videos?

  1. Consumers are craving for instant gratification

Unfortunately average human attention span has fallen below the one of goldfish, so not surprisingly 75% of consumers prefer video under 60 seconds. YouTube is aggressively pushing their 6 second videos, which is enough time to tell even world´s greatest stories (below is Hamlet):

  1. Video platforms are eying for the prime time

YouTube are evolving from dubious quality user-generated snackable content to full-blown entertainment powerhouses. YouTube has couple of interesting offerings: YouTubeTV (cable-free LiveTV) and YouTube Red (ad-free offering focused on music and content creators). Facebook has not exactly resting on its laurels and Facebook Watch provides original video shows.

  1. Video is getting more interactive and immersive

This quarter there were over 2 million VR devices shipped (ranging from no-frill Google Cartboard to top-tier Oculus Rift), but VR has not yet hit mainstream. It currently works well with events and gaming, but we have not yet seen the killer app (or device) that would break VR to become a household name.

Augmented reality is already more mainstream (with Pokemon Go last year and popularity of face filters in Snapchat and Instagram). New Apple ARkit will just keep on making Augmented reality more popular.

Based on the calculations by Credit Suisse, VR/AR market could become as big as the current smartphone market:

Screen Shot 2017-10-16 at 4.01.47 pm

Source: Credit Suisse

So in the future, you do not only need to consider what is your content angle with your video. You have to also consider the depth of interactivity and immersion you want to obtain.

In many ways digital marketing is becoming more simple. It is all about two things: performance and content creation. The latter is all about video creation and to succeed in the market place, you have to be master of video production as well.

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The MAYA Principle: The Most Advanced, Yet Acceptable

“Making the strange familiar and making the familiar strange, again”

– David Foster Wallace (about realistic novels)

Reading the book “Hit Makers” reminded me about Raymond Loewy´s MAYA –principle. Raymond Loewy was one of the most iconic industrial designers of the last century. Among his works are Lucky Strike package (logo on both sides to maximize the visibility), Coke vending machines, Air Force One livery and Skylab space station (with window to look back to Earth) to name a few. MAYA-principle means:

“The Most Advanced, Yet Acceptable”

To sell something familiar, make it surprising. To sell something surprising, make it familiar. This is one of the most important things to understand about human beings. The battle between familiarity and discovery shapes our whole lives. We want to feel safe, but at the same time we enjoy the thrill of challenge. The conflicting forces of safety and excitement explains why we resonate and like things that are familiar enough but also have something new in them. Loewy´s theory (which worked in practice) was also later proved in academic research.

Humans don´t want the same old thing all over again, but they also don´t want totally new thing. They want the same thing with slight twist. That is why Spotify´s weekly playlist works so well, it exposes you to new music but at the same time plays songs you are already familiar with. “Let It Be”, “Don´t Stop Believin”, “Can You Feel The Love Tonight” and “No Woman, No Cry” are built on the same chord progression. However, it would be ludicrous to say that these songs sound the same. There is lot of innovation in these songs, but it is innovation with boundaries. Innovation is not about thinking outside the box, it is about rethinking the box.

The secret to create things that resonate with popular audience is to embrace the conflict in the humans. It is not choice between neophilia (curiosity about new things) and neophobia (fear of anything too new), it is about finding the balance. This dualism is crucial in our industry as we quite often fall into the trap of going after whatever is new and shiny. Or we are too lazy and just do something that has been done before without adding any of the magic. Both are equally bad approaches to talk to the masses (which is the main goal for advertising). You have to find the balance between typicality and novelty.

The secret to popularity is to add slight hint of danger but still maintain the feeling of safety in your audience.

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No Moment too Early for Machine-created Creatives

Good copy stops you to read. Bad copy as well (so in that way mediocrity is something you should avoid):

I like to read paper newspaper as it keeps me in touch of the current decline of print advertising (not to mention Straits Times gives interesting viewpoint to the society, mostly by what it omits to tell). This ad is a good example on why we should already move to machine-generated creatives for majority of advertisers.

Of course AI will eventually be able to do even better, more touching and innovative creatives than we do at the moment. Meanwhile we should at least try to differentiate a little, show what humans are better: emotions, insight, feelings. If we cannot add even a little bit of magic to whatever we do, AI will overcome us faster than we have predicted.

 

 

 

 

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Supermarket Champagne and How Quick Win is Not Always Beneficial for Your Brand

For a person coming from Finland where you only can buy wines from government-run monopoly even seeing wines in supermarket is somewhat mind-boggling. However where I advocate liberal policies, being too accessible might not be that wise strategy if you want to be regarded as premium luxury brand.

In the case of G.H. Mumm the genie is out of the bottle (no pun intented) and it has definitely positioned itself as a mainstream champagne. However even for supermarket champagne this promotion is just plain ridiculous:

gh_mumm

Taking picture of receipts?

Sending messages to dubious WhatsApp numbers?

How low will your brand go?

To me if you want to be perceived luxury you should not even be having promotions or discounts. But even if having promotion you could create a better and more luxurious experience, maybe a nice landing page or if you want to use messenger apps: a chatbot.

Brands are after quick wins and forget that those actions will deteriorate the brand on the long run.

(Some smartass might ask why I bought the bottle in the first place, which is a valid question. In this case, the wacky promotion did not stop me from buying the product (but it was close). I just ignored the promotion) 

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Technics SL-1200: A Story of a Brand Who Deliberately Wants to Lose Its Street Credibility

dj

Me and my SL-1210 ca.2004

I own four turntables: one set back in (OG) home in Finland and one set here in Singapore (naturally as old DJ, I count turntables in pairs). All of these turntables are Technics SL-1200. In 2010 the production for these DJ workhorses ceased, but because of the current vinyl revival Panasonic has started to manufacture them again.

Only catch: they will cost about $2800 (about four times the previous retail price of Technics Sl-1200. To put it in perspective, I have used about $1500 for all my four turntables. I have nothing against companies trying to make more money, but the bigger problem I have with them is how they are alienating the group that made them famous to begin with:

“Our concept is analog records for hi-fi listening. D.J.s are fine, too, but as a marketing target it’s problematic. We don’t want to sell the 1200 as the best tool for D.J.ing. The 1200 is the 1200.”

-Hiro Morishita, Creative Director at Technics

Because of the DJ´s, sl-1200 has become one of the most well-known turntables in the world.  Now they are essentially disowning that group and trying to attract old and wealthy audiophiles. They have German classical pianist Alice Sara Ott as their global brand ambassador. They used to sponsor DJ championships before.

I have nothing personally against Alice, but I have seldom seen brands so totally disowning their heritage. Also it seems counterintuitive that when brands are struggling to target millennials and younger audience you have a company that has a great opportunity with that tricky target audience and totally neglecting to take advantage of it.

Vinyl sales are growing among millennials, hip-hop is worldwide phenomenon and DJs are biggest music superstars. You have a product that is naturally ingrained to all these trends. Many brands don´t have street credibility and try to borrow it. Technics Sl-1200 would need to borrow it, but instead they have pivoted to weird direction.

Not to mention, they don´t also have credibility in audiophile audience.

Technics SL-1200 has never been known for being the best hi-fi turntable and with their current price tag you can get turntables with better sound quality. The cultural cache that Technics Sl-1200 has does not really expand to hi-fi enthusiasts. If you are listening to Alice Sara Ott, you don´t really care who is Grandmaster Flash or that he used to use exact same turntable. Only people I know that have modified tonearm or power supply in SL-1200 (well-known not particularly good sound quality items in Technics Sl-1200) are old DJ´s. Would not seem that of a stretch for them to acknowledge the DJ heritage but do an improved version for the nostalgic old DJ´s and the DJ-minded audience. I would assume the sales would be better than with the new version.

I am loyal to my Technics Sl-1200 as long as I listen to vinyl, but I would never buy the new SL-1200G. Luckily the thing why DJ´s loved these turntables are that they are almost unbreakable so I don´t really need to acquire new ones.

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Blocking The Ad-Blocking

Ad Blocking is nothing more than someone saying your advertising sucks.

Sharon Napier, Partners & Napier

NBA: New York Knicks at New Orleans Pelicans

Ad-blockers are changing the digital advertising landscape drastically. Already quarter of Internet users in US are using ad-blockers and about 50% more is considering to start using them.  If digital advertisers are left with audience who is just incapable of using the ad-blockers, it does not sound like particularly lucrative target audience. We already know that people who are clicking banner ads are not necessarily the sharpest pencils on the drawer. Already in 2011, it was 279.64 more likely that you would climb Mt. Everest and reach the summit than to click a banner ad.

Facebook has started to force ads even if you are using ad blockers in desktop. Publishers are testing different ways to battle ad-blocking. But essentially it will a game of cat and mouse. People have already made their statement: majority of them don´t want to see your spammy ads.

So if you can´t beat em, join em:

  1. Brands should do their own ad-blockers

Maybe Amazon could this. Instead of getting non-relevant harasment, you would get personalized recommendations based on the content you are watching. Essentially Google ad network could already provide some of this level, but many of the advertisers are still quite lazy to utilize all the possibilities. New cognitive ads from Watson could provide interesting alternatives to changing the adspace from intrusion to utility.

It could be also strong statement from brands doing constantly good advertising. For example I would rather see Nike ads all the time than majority of other brands (see D&AD Ad Browser filter)

There are already some ad-blockers who are selling ad space (which sounds a little contradicting, but what the heck). The logic is that you replace the annoying and ugly ads with acceptable and beautiful ads.

  1. Reverse ad-blocker

This could be an interesting art project.

When we are flooded with fake news, actually the ads are only thing we can rely on. So I don´t actually want to block the ads, I want to block the horrible content I waste my time on. Think about it if you could block all the Facebook updates, irrelevant Whatsapp messages and biased online commentary. You would only see the good old marketing communications aimed to make you buy more instead of fake news messing with your head.

Blocking is a part of good defense, but great blockers keep the ball on court.

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Anatomy of An Insight: Jet.com Careculator

They say that it is better to give than to receive. Those people are wrong. Best thing is minimize the amount you are spending in others so that you can spend more on yourself:

Insight: The more you love someone, the more you feel like you have to spend on them. But it is actually hard to estimate how much you should spend for presents. Especially during christmas you feel stressed on buying the presents to your loved ones. and ensuring that you do not go overboard but also don´t lowball. What if there would be an easy way to calculate friend or family member has to you?

careculator

e-Commerce site Jet.com Careculator calculates the “value” of your friends and family based on how much they have interacted with you in Facebook. Then naturally it will recommend products from Jet.com that fit to that particular price range.

It will be interesting Christmas, as algorithm said that my present to my wife needs to only be 0.66 dollars.

Disclaimer: This campaign has been done by R/GA New York

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New Social Order: Why Everything You Learned About Social Media is Wrong?

nwo

“Messaging is the new web browser. Everyone has a phone. Everyone has a favourite messaging app on their phone. If your new thing can message people via those apps, then anyone can engage with you.”

Matt McAlister (Guardian) 

Social media has been good to me. I used to work in MySpace in its heyday. I mostly made my name after that doing many succesful Facebook campaigns. I have exploited all the useful social media channels in promoting my books, parties and whatever else I have been doing. Majority of readers to this blog come from Twitter and LinkedIn.

That being said, social media is not what it used to be. It has become big business. It has become boring. It has become predictable. Essentially social media has reached the adulthood.

Marketers took a while to learn the ropes of social media. Now we have to unlearn everything we knew about social media if we want to succeed in the new marketplace:

  1. Social media listening is becoming meaningless

70% of the social discussions cannot be tracked because they happen in ”dark social” e.g. in messenger platforms and to lesser extend e-mail and SMS (older demographics). All the social media listening tools are focusing heavily on Twitter with some Instagram and Facebook mixed in. That is hardly a representative of almost any audience. Social media listening tools focus on Twitter because it is easy to monitor. That is like only doing biceps at the gym, because it is the most convenient movement to do. The reality is that you don´t know what your audience is talking about in digital and most likely will not be able to know in the near future.

Regard social media listening as a pulse (or weak signal) of what is happening, but not the full accurate picture of your audience and what they are talking about. Unless your audience are ”social media gurus” and celebrities.

  1. Engagement with your audience is a myth

Facebook is not social media; it is paid media. There is no organic reach for the brands anymore. You have to approach Facebook with same tools and methods as TV (expect with slightly better targeting opportunities). The most interesting bit about Facebook is the whole ecosystem with WhatsApp, FB Messenger and Instagram. Referring to previous point, we might not know what people are talking on WhatsApp but soon we can target ads based on what they are talking.

Forget always-on, approach Facebook through campaigns. Do less, but bigger things. For smaller things, automate as much as possible.

  1. Chatbots are the magic bullet to bring utility to social and make brands meaningful

The whole digital experience will start to revolve around messengers. The real value brands can bring is not in human relationships, but in human-machine relationships. Community manager –model is not sustainable as it requires actual people running it. Seeing a social post of pizza will not improve your life, but ability to order pizza from the messenger will (or make it worse depending on how many pizzas you eat a week). Conversational commerce will be the biggest opportunity for the brands in the short run to become meaningful in digital sphere.

Define how you can bring value to your audience through messenger with chatbots. Move fast because your competitors are most likely thinking about the same things as well.

  1. Influencers and partnerships are the key to borrow relevance

Ad-blocking is becoming more and more prevalent. Whether your ad is in Facebook, YouTube, Instagram, the default setting for your audience will be to block it. Only way to overcome ad-blocking is Again brands should not play in human-human relationships, but as an enhancer and enabler of star-human relationship. You have to start working with relevant influencers and start creating native content with the relevant media entitities. The answer to ad-blocking is not making better ads, because once you have blocked your ads you will not unblock them just because quality of interruptions has improved.

Go where your audience is and play with their rules.

  1. Forget social media

Like said earlier, the digital behavior will start (has already started) to revolve around messengers. That will be a melting pot of social, mobile and eCommerce and you have to understand that whole melting pot to succeed in the new marketplace. Our audience is not slicing and dicing their life. Messengers are lifeline of their whole existence and there is no boundaries between real-life and digital.

Your audience does not live in silos. You should not select your vendors to specialize in silos either. 

New social order has been here for already quite a while. Is your company ready for it?

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Who are able to Keep Their Jobs when the Robot Apocalypse Happens?

terminator

Majority of the work we are doing as marketing professionals will be done by robots in (not so far) future. So if we won´t embrace that change, we will The workforce lead by robots is not only a threat for luddites but also opportunity for broad-minded professionals. Before anything can be automated and singularity kicks in, there will be a (probably relatively long) period of augmentation when we can work alongside with smart machines.

In their book ”Only Humans Need Apply”, writers Tom Davenport and Julia Kirby list five potential ways for us humans to remain relevant when robots starts to take over:

Step Up
Overseeing the automated systems.

Who will keep their jobs in advertising industry?
A few lucky managers, who are visionary and ruthless enough to replace majority of the workforce with automated systems.

Step In
Learning more about how robots will work and how to improve them.

Who will keep their jobs?
Those who are currently good at their jobs but not opposed to progress and using robots to do majority of the heavy lifting in their work. Combination of machine learning and human tacit knowledge is quite often the killer combination compared to only-human and only-robot approaches. At least for now.

Step Aside
Paradoxically the much-ridiculed ”soft skills” are more robot-prone than the more analytical skills. It is easier to teach robot to kick your ass on math challenge, but way harder to teach robot to have empathy when your colleague is having a bad day.  Using human skills like motivation, creativity, persuasion or empathy while using the automated systems will be the killer combination in expert services (e.g. financial advisory: robots are doing the investing, humans are doing the selling).

Who will keep their jobs?
Everyone who can sell and gets along with people. Evem when majority of the hard work is done by machines you still need human touch to sell those solutions to other humans.

Step Narrowly
Specialize in field so obscure that it does not make sense to automate.

Who will keep their jobs?
Those specialists who you call to perform really weird tasks with high price tag (e.g. the best taxidermy photographer, world´s best copywriter for sanitary pads, scouting agent specializing in New York) and you always wonder how they make their living (from those weird tasks and commissioning premium, duh). In global marketplace there is enough demand for pretty much anything and there is always higher demand for the best one in the field.

Step Forward
Developing new systems and technology to automate processes.

Who will keep their jobs?
Forward-looking people who have good understanding of current processes and preferably understanding of data & algorithms (or alternatively ability to speak the same language as data geeks).

As we can see from this list, there are plenty of opportunities in our field to work alongside smart machines. What combines all of these ways (maybe excluding stepping narrowly which is probably the least applicable route to majority of us) is that we need to embrace the improvements that smart machines can bring to our ways of working.  We need to be willing to work to add value to machines and be willing to let machines add value to our work. If you are opposing change and just hope for legislative restrictions to slow down the inevitable, you are without your job sooner than you think.

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