Category Archives: Digital Strategy

Mar 03 2015
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Advertising, Digital Strategy, Insight, Planning, Social Media

5 Ways to Make Your YouTube Pre-Rolls Kick Ass

Sometimes media is the message.

Lately there has been one media, which has had a sudden surge of messages: both skippable and non-skippable.

YouTube pre-rolls.

Despite annoying the hell out of users and not really making money, brand advertisers love YouTube pre-rolls. They are the new TV ads. Unfortunately that familiarity often translates to laziness. When there is lack of understanding of digital possibilities, YouTube pre-roll seems like a silver bullet. It feels easy, cosy and ticks all the right boxes (visual storytelling, digital, reach, etc.)

1. Don´t use your TV ads as a pre-roll.
There is an exception to this rule, though. If you have done genuinely funny, entertaining and effective TV ad, which works also in digital format and drives the message home in the first 5 seconds you can skip this part.
Yep, I thought so.
Although it feels tempting and easy solution, dumping your TV ad to YouTube hardly cuts the mustard.
Majority of TV ads are 30 seconds. The media buying behavior is the main reason for the duration. 30 seconds is not magical duration to tell a story. Especially in YouTube, where people watch content ranging from fraction of seconds to multiple hours.
TV ads are more passive format, as you cannot skip them as reaching for the remote is more tasking than moving your cursor on screen. You can be more boring and long-winded in TV ads and still make them work. You don´t have that luxury with YouTube pre-rolls. At its most minimum level, at least make YouTube edit of that TV ad.

2. Understand why people are watching YouTube videos
When you buy that pre-roll, you are, by default, annoying users. They want to watch some idiot eating Naga Morich, not hear about your latest anti-dandruft shampoo. You are not engaging with audience, you are interrupting them. So embrace that fact. Little contextual acknowledgement (Burger King Anti Pre-Roll) or even reward for watching the whole video (EAT: Don´t Skip Your Breakfast) will go a long way.

3. People will likely skip your ad. Make those 5 seconds count.
Depending on the source, over 94% or as little as 70% skip the pre-rolls. Nevertheless of the actual number, you can safely assume that your pre-roll is more likely to be skipped than seen or shared.
Therefore the most important part of a good story is the beginning. You have to catch the attention immediately. Like saying that you electrocute a dog if you skip the ad:

Even after this threat, only 26% watched the video in its full glory. Either there are more latent dog-haters around or people just skip the ads based on the habit. Hardest task is to make people stay and watch the first 5 seconds. After that the consumer is already committed to your content and can just hang on:

4. Don´t Sweat The Length (but make it as short as possible)
Generally non-skippable YouTube ads should be shorter than that and skippable ones could even be significantly longer. So take your time as long as your start is hard-hitting. After first five seconds everything is easier.
Only caveat is that it might be quite overkill to force user to watch 30s pre-roll when she is watching 10s video. Smart marketer would have lots of different versions of the YouTube pre-roll to suit different context (like Burger King Pre-Roll) or different lengths. The following ad from Volkswagen would work brilliantly with shorter-form video:

Doing multiple versions is more expensive from production perspective, but increased investment would also result in increased effectiveness.

 5. If you don´t have anything interesting to say or show, you are not interesting
YouTube pre-roll has certain limitations and opportunities, which are good to keep in mind. At the end of the day, it is still about good marketing communications. Great story is a great story whether it is 5 seconds or 5 hours. And on the other hand: If it looks like shit and smells like shit, you don´t need to really taste it to verify that it is shit.
If you are doing the latter, you should be ashamed of yourself. No matter what the medium. And if you are being clever and having fun with the medium you can actually expand the interest from 5 seconds to 1 minute:

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Jan 07 2015
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Business, Digital Strategy, Insight, Marketing Strategy, Planning, Strategy

Skiplagged Sends Airlines to Hell

This week seems to be all about airlines and flight industry.

From Skiplagged website:

Update: Dec 30, Skiplagged is facing significantly higher than normal traffic. Please try again later if you encounter any issues–you will be amazed. Thanks.

The odds that you had heard about Skiplagged before Orbitz & United Airlines sued them last November are quite slim. After that, their visitor count has skyrocketed through the roof. Sometimes all publicity is good publicity.

Lesson #1: Getting sued is a great way for free promotion

Skiplagged effectively helps you to find cheap flights by using “hidden city ticketing”. The direct flight from Singapore to Helsinki can be more expensive than the flight from Singapore to Paris with stopover in Helsinki. Then you just hop over in Helsinki and just don´t use the last flight. This is only recommend to one-way flights because usually your ticket is cancelled afterwards. I have not (yet) tried out hidden-city ticketing, but I have done throwaway ticketing once. It just feels completely odd that if you want to travel one-way you have to pay double the price of return ticket. Actually when I did it, I did not even know that it was not approved. Aktarer Zaman, the founder of Skiplagged explains:

When you are searching for tickets, your market is just to go from this city to this city to this city. And you are shown a price. You are buying this flight when you are buying a ticket. So this is a service you are buying in. Consumers should have the right to partially use the services they buy.

I agree to most extend with the sentiment in here: when you buy something you should also decide not to use it. Not to mention that sometimes you are forced to not use the flights. There are certain arguments that using these loopholes in large scale might increase the costs of airline travel. It might also hurt smaller airline destinations as well. Eventually I feel it is quite fair game though. Airlines try to maximize the money out of us; meanwhile we are doing the opposite. In the bigger picture I think they are in better position to screw us over.

Lesson #2: Digital makes your business model eventually more transparent

Doing different airline booking ploys has been around longer than Skiplagged, but it naturally has done it faster and more effective. Exploiting these loopholes is definitely not illegal, but in can result in losing your loyalty program points. Based on the increased interest to Skiplagged and rising popularity of budget airlines this does not seem to be the a big concern for the majority of users. Consumers are not essentially stupid and millions of loyalty programs and cards have just led to more disloyalty. Also it has lead to increased focus on price especially with airlines.

I was just talking with one friend who mentioned that even with their corporate discounts with major commercial airline, it is still cheaper for the company to fly short-haul with budget airlines. And so they are doing. Consumers are doing the same. Flying has become so commoditized that you do not really care what airline you are flying if is deemed relatively safe.

Lesson #3: Price trumps the loyalty for the majority of consumers

After the lawsuit, Aktarer Zaman put up a crowdfunding-site up to cover up the upcoming legal bills. He has already raised over 60k. The response has been overwhelmingly positive for Skiplagged and quite vicious towards the airlines. One person donated $666 dollars and commented: “send them to hell”.

Lesson #4: People hate airlines

It is interesting to see how this will pan out, but again this a manifestation that no business is “safe” from digitalization. If there is a market fault, it is just easier and faster to point it out and also solve it digitally. That might create a totally new business as well. In the case of Skiplagged, it will be a zero-sum game. Either one will win. Time will tell will the Skiplagged send airlines to hell or will they sue Skiplagged to death.

Lesson #5: Always keep evolving

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Dec 23 2014
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Advertising, Business, Digital Strategy, Insight, Marketing Strategy, Planning, Social Media, Strategy

My Greatest Hits 2014

Last day at work for this year, so it is good to take a look back at this year.

I was quite happy about the productivity in my blog this year. I am actually quite fast writer, but my biggest problem is always an inspiration. Usually my mind is just blank, regardless of constant stimulation (books, movies, exercise, other blogs) I try to give it. If I get an idea, the actual writing does not take that long. That is why I have just tried to force myself to write posts even with half-boiled inspiration and it is starting to pay off now. The readership has been also increasing steadily, which is nice to notice as well. Majority of visitors come from LinkedIn, but when something takes off in Twitter, it might result in much bigger audience. I think that showcases that LinkedIn influencers do not have as wide reach as Twitter ones.

Below are the ten most-read posts of the year. If I think about this blog, there are two distinctive types of posts in here. Other ones are I just blow off steam and rant about something quite random. The other one is that I am obviously working on something and want to get more clarity around it by writing and putting my research on more concise format. It is quite good balance with both of them on this most-read list, so I will continue the next year with the same strategy.

Top 10 Most Read Posts 2014

1. Psst…Can I Whisper You a Secret? Anynomous Mobile Messaging Apps
These types of posts are the most demanding from research-perspective, but also most useful on the long run as they have longer shelf life. This has served as my cheat sheet every time someone has asked me about anonymous chat services.

2. Going Nuts about Macadamia Nuts
Topical post with one clear idea usually goes down well with my readers. Good example of post you have to write immediately when you get the idea, otherwise you just forget it or start over-intellectualizing it.

3. Never Skip Your Lunch Break
Quite seldom I get personal feedback about my posts, but this post has prompted numerous people to forward their approval. It is nice to hear, as I take my lunch breaks seriously.

4. Marketing At The Speed of Culture
I don´t even remember this post, is probably not that good either.

5.Anatomy of An Insight: Edeka Supergeil
Great ad and some post-rationalization, always a certified hit in Stand-Up Strategy.

6.#Cockinasock and Twisted World of Male Charity
It is about male genitals stuffed in sock, who would not read it?

7. How to Know When It Is Time To Quit?
I almost did not remember what this post was about, but reading it again it gave vivid memory of that dork banging on the wrong door at the middle of the night. Human tragedy for me makes perfect comedy for you, dear reader.

8. Why Don´t I Use Data On My Smartphone?
It is always interesting when digital professional reveals something about his own technological handicaps.

9. 9 Tips On How To Be Interesting Conference Speaker
These types of posts used to be my staples back in Finland. List about how to become better at something. I have not really done these for a while, so this was more of a test about could I do classic list-type of posts.

10. Sharing Economy: A Threat or An Opportunity For Your Business?
Again longer compilation about bigger trend: took some time to research again, but has proven to be useful later as well.

There they are. If I would like that some post would be on this list, it would be this one about the future of Internet. It was actually the 12th most read post, but I still think that it has quite a lot of valid points to consider. Essentially, the readers decide the importance of post and maybe that post is just too long-winded and boring.

Well, that was it for this year. I will now focus on reading some Paul Auster, listening to the new D´Angelo album, drinking some gin & juice and just enjoying wonderful Christmastime.

See you again in 2015.

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Dec 18 2014
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Digital Strategy, Insight, Social Media

The Only 2015 Social Media Trends You Need to Read This Year

As the year approaches the end, it has become an annual tradition for me take a look at crystal ball and share my views to Kurio Digital Marketing Think Thank on the next year´s social media trends. For those adapt at Finnish, I recommend reading the whole report in here. If you are not interested in the predictions of 26 other Finnish digital marketers, you can also jump straight to the most important ones (mine) below.

Before going through the actual answers, I have to say that I have not been interested in social media as such for a long time. Do not get me wrong. Social plays crucial role in digital business. But I seldom think digital as a separate entity either: digital is air. Digital, mobile and social should be a part of every business. Sometimes at the core, sometimes playing supporting role and sometimes playing no role at all. Strategy is about deciding what to do, but even more importantly what not to do. If you are thinking social media as a separate unit you are missing the bigger picture. The dominance of digital universe goes well beyond our traditional silos.

Having got that off my chest, here are my most important social media trends for 2015:

1. Biggest Social Media Trend in 2015?

One-Size does not fit all
No more social media army knives. Consumers demand services excelling in one feature instead of having multiple mediocre features crammed into one. It is no longer about maximizing users in one single service (Facebook), but maximizing the time spent on the whole ecosystem (WhatsApp, Instagram, FB Messenger). How different services will or not be integrated together is big strategic question and will have implications on what channels companies should be using to reach their target audience.

2. Social media platforms to look out for 2015?

Anonymous and Interest-based networks
Anononymous chat apps (i.e. Whisper & Secret) are definitely interesting. It remains to be seen, can they do the jump to the next level like Snapchat has done.
Even in 2014 discussion forums are still alive and kicking. This is one proof that, there is demand for interest-based social network with underlying idea ”It is not who you are, but what you are interested in”. Ello cannot make it and current anynomous chat apps focus more on filth, rumors and spying. All of those activities are naturally great, but is it enough for these apps to make it to the major league is a billion dollar valuation question.

3. Biggest challenges in doing social media marketing in 2015?

Wrong teams doing wrong things with wrong budgets to wrong clients
From business logic perspective, Facebook and YouTube are more traditional advertising than social media. When you sponsor a post in Facebook, you should invest as much or even more to it than to a print ad. Emphasizing the verb “should”. Many marketers have not understood the shift in dynamics in digital marketing. Facebook is new print. YouTube is the new TV. Some marketers still have the illusion that digital is either free or cheap and you do not have to worry about production values. They could not be more wrong.
On the other hand, some marketers misinterpret the rising digital ad prices and increased resemblance to traditional ad buying logic to just pushing your TV ads to YouTube or print ads to Facebook. They could not be more wrong. Although the prices are getting closer, the creative should be drastically different.
Eyeballs cost money and you do not have loopholes for free publicity any more. If you are not ready to take risks, be honest and bold, catching the attention of consumers is even harder, almost impossible regardless of the media budget.

4. Social Media Buzzword, which hopefully disappears in 2015?

Ello
There has been a simple reason why I have not written anything about Ello in this blog. It is not interesting at all. Diaspora and Ello are manifestations that consumers are not really that interested in privacy, your personal data usage in advertising or in pretty much anything else that you should be interested as a conscious consumer. The problem is that majority of consumers are not that conscious.

5. Biggest social media wish for the next year?

Wishes are for people, who do not make demands.
I actually read through my last year´s predictions and I still think they are valid stuff as well. So if you did not find trends suitable to your liking in this list, I recommend reading that one.

Happy holidays to every one! I still might have couple of posts left in tank for this year, but soon going for a deserved holiday.

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Dec 16 2014
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Business, Digital Strategy, Marketing Strategy, Social Media

Why Xiaomi is The Future of Smartphone Industry?

What is the world´s fourth and China´s biggest smartphone company?
Hint: It is not Nokia.

It is actually company called Xiaomi, four-year old Chinese company, who does really affordable smartphones and has been dubbed as the Apple of China. it has taken China by storm and is now eying for world dominance. So forget the usual players for a moment and take couple of lessons from the new rising star of mobile:

1.Smartphone market will be commoditized, be cheap
Smartphone is not a status symbol anymore or anywhere in the world. The latest innovations in smartphones have majorly been in terms of size. Xiaomi´s operating margin was only 1.8 percent compared to 28.7% Apple and 18.7 Samsung. Part of it is due to their aggressive growth strategy, but other part is the commoditization. Profits will definitely shrink in smartphone category. Especially when the main source of growth will come from developing markets.

2. Copy with pride & style
One of my colleague ordered new Xiaomi phone. When I tested it out, it was quite a revelation for a devoted Apple user. Actually it was probably the first Android phone I thought of actually, so striking was the similarity with iPhone. Whereas many other copycat products I have seen, it did not feel cheap or shady at all. The package was nice and the phone felt way more premium than its price. So it would be unfair to categorize Xiaomi phones only as copycats, but it would be unfair not to mention that aspect either. It is not coincidence that Lei Jun, the founder of Xiaomi, rocks black turtlenecks and jeans in their product unveilings. Technologic innovation is expensive, so Xiaomi bypasses that one and innovates in other areas of their business.

3. Innovate the business model
Xiaomi is not technologically innovative, that is true. From business perspective, they have been really disruptive. Xiaomi keeps their phones longer in the market than other competitors (even to 18 months compared to 6 months of Samsung). Apple has to come up with new products constantly to keep up their margins. Xiaomi is more betting on component cost drop-off during those two years and prices their product initially close to the component cost. Selling phones (they also have tablets and tvs) is just one side of the coin; their main goal is to actually sell services and apps through the phone.

Next year will be important litmus test for their approach as they are rapidly expanding beyond China. They concentrate on markets with large populations, e-Commerce infrastructure and weak telecom carriers. The initial response from India was great, although now the sales have been blocked because of potential patent infringement. The focus on India, Indonesia, Brazil & Russia is wise strategy, but there might be actually some opportunities in more developed markets as well. My colleague was not the only Singaporean who has bought their new phone. During this Christmas season Xiaomi phones have been more popular lucky draw prizes than iPhones. At least for a while, the slick design and renegade attitude has certain aspirational cool factor, not normally attributed to budget versions.

4. Innovate the distribution
Xiaomi has a digital-first approach to the sales of their phones. They partner with big e-Commerce retailers (like Tmall in China and Flipkart in India), and sell their phones through them. They never sell through brick & mortar stores. By selling directly to consumers, the company can collect and administer all the feedback and built it into the next generation of their phones.
They are also well known for their flash sales, which resemble more of buying rock concert tickets than traditional mobile phone sales. In China, during Single´s day, they sold over 200k smartphones in less than 3 minutes. In India they sold out in their flash sales in 4 seconds. Flash sales work both from branding and business perspective. They create demand and buzz around the phone. Flash sales are not just solitary transactions; they are actual events. One of the main reasons why they sell limited quantity of phones each week is to keep costs down by having smaller inventory.

5. Being cheap does not mean that you do not have brand
Xiaomi phones are entry-level phones, but creating brand affinity with teens is not necessarily a bad strategy. Xiaomi is not just a cheap phone for their devoted fans. It resembles more like religious cult. Part of it is that Xiaomi is probably the first technology brand, that Chinese can really be proud of. It does help to have charismatic leader to go with it as well. Xiaomi launch events are real festivals and people even buy tickets to attend them. Over 60 million watched the livestream and some even took 15h ride to attend those launch events. The events, flash sales and the product serves as marketing. Xiaomi does not really do conventional advertising and uses only 1% to marketing. Their devoted fans and devoted leaders are the best marketers. When Lin Bin (Xiaomi co-foudner) had a “planking” competition with their management team this December, the photo was shared over 3000 times. Not necessarily something that would happen with more traditional companies.

Although you would not necessarily switch to Xiaomi phone, their disruptive business model is something to follow and watch out for in 2015.

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Nov 18 2014
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Business, Digital Strategy, Planning

Digital Years are Dog Years

Someone opposed an idea, because it was “already” proposed three years ago.

Three years?

Are you kidding me?

Maybe three days, three months but three years!

Normally during three years in advertising, all of your clients and colleagues have already changed completely. How anyone can even remember what happened three years ago? I generally believe that if you have a good idea, you sell it as long until someone buys it. Or you are bored with it, which might indicate that it was not good idea to begin with.

Three years is a lifetime.

Digital years are like dog years. Things change and age faster. To get matters in perspective, here are collection of things that has happened during last three years:

I had to just write these as a reminder, so I can guide people here when they say something as stupid as that to me again.

Just because something has been done or proposed before, does not mean it cannot be done. Just do it better. Sometimes the proposed idea was right, but the time was just wrong.

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Nov 17 2014
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Business, Digital Strategy, Insight, Marketing Strategy, Planning

Streaming Services Are The Last Hope of Music Industry

Last week Taylor Swift has been applauded as a crusader of music rights as she withdraw her album from Spotify:

“[People] can still listen to my music if they get it on iTunes. I’m always up for trying something. And I tried it and I didn’t like the way it felt. I think there should be an inherent value placed on art. I didn’t see that happening, perception-wise, when I put my music on Spotify. Everybody’s complaining about how music sales are shrinking, but nobody’s changing the way they’re doing things. They keep running towards streaming, which is, for the most part, what has been shrinking the numbers of paid album sales”

Taylor Swift´s comment is just a hypocrite sugarcoating of a smart business move and a great marketing stunt. She is still able make a platinum-selling album (the only one this year for that matter), so she concentrated on maximizing the physical sales. She would have left her albums in Spotify, if they had paid her more through premium service. She is smart businesswoman, so she definitely did the right thing for herself (proven by those platinum sales). It is not clear though, would she make even more money if she would have left her album in Spotify?

The last point of the quote is however just pure stupidity. Paid album sales have been shrinking way before no one had ever imagined music streaming. Streaming services kill downloads (both legal & illegal), because downloads are inferior format. Music streaming has been a truly a blessing for music industry. I might listen the new Taylor Swift album once on Spotify because all the publicity. She would get something out of that listening, but more than from me not listening that album or using BitTorrent. I would not buy or even illegally download that album in any case, because I am not that interested. Big stars benefit more from lurker listeners than smaller artists.

Essentially there is only one important thing to really understand about current music industry:

People will not be paying for physical music anymore. Period.

This is called progress and you cannot stop it. Taylor Swift is an outlier with her platinum sales. Increase of vinyl record sales is just a too well covered hipster activity. You have to be a total moron to think that vinyl sales could help even slightly the struggling music industry. The real question is: are people willing to pay for streaming services? They are the last resort to make any money from the actual songs. Currently it seems positive and with the launch YouTube Music Key, there is enough competition to keep it interesting for the near future.

It is naturally disheartening to read about that Iggy Pop cannot live with his music or how little Aloe Blacc gets royalties from writing one of the biggest songs of the year:

Avicii’s release “Wake Me Up!” that I co-wrote and sing, for example, was the most streamed song in Spotify history and the 13th most played song on Pandora since its release in 2013, with more than 168 million streams in the US. And yet, that yielded only $12,359 in Pandora domestic royalties— which were then split among three songwriters and our publishers. In return for co-writing a major hit song, I’ve earned less than $4,000 domestically from the largest digital music service.

But what is truly the alternative?

Iggy Pop makes his money from advertisements. He could not do those without being a musician first. Although he remains fit, I doubt it is from starving.

I appreciate Aloe Blacc tremendously. I have been supporting him by buying physical records made by him from the start of his career with indie group Emanon. Is Aloe Blacc better off now or when he was pressing and self-publishing his records? Although the revenue share from “Outside Looking In” was probably more favorable than the terms and conditions of Spotify, he is now more successful by every account. “Wake Me Up!” would not be as big song without Spotify and the exposure of that song has benefitted Aloe Blacc way more than the petty 4000$ from the streaming royalties. The sad fact just is that the individual hit song will not necessarily make you money anymore. That song is more of advertising. Is it right or wrong is a philosophical question, but does not change the shifted dynamics of music business.

I agree that 4000$ looks shameful for making one the biggest songs in the universe, but life is not fair. People do not want to pay for physical music anymore, expect for old luddites like me, who still get excitement from the special box sets. Actually I am more worried about the viability of Spotify´s business model. They are currently handling over 70% of their revenues to different rights holders according to Spotify CEO Daniel Ek:

Spotify has paid more than two billion dollars to labels, publishers and collecting societies for distribution to songwriters and recording artists…that’s two billion dollars’ worth of listening that would have happened with zero or little compensation to artists and songwriters through piracy or practically equivalent services if there was no Spotify.

They are not profitable yet, either.

“Wake Me Up!” has been estimated to generate almost million in Spotify royalties. Someone is getting paid (and there might be a master plan behind it). The history of music has not really been a financial success story of artists. Record labels, shady managers and other Svengalis have exploited the creative work of musicians. So either the artist are afraid, smart or just increasingly naïve by pointing the finger to Spotify instead of their employers, record labels with whom they have signed their contracts.

You can still make money out of music, especially if you are strong brand, innovative or just really good. Dave Grohl (from one-of-the best live bands in the world) sums it up nicely on Reddit discussion:

Me personally? I don’t f*cking care. That’s just me, because I’m playing two nights at Wembley next summer. I want people to hear our music, I don’t care if you pay $1 or f*cking $20 for it, just listen to the f*cking song. But I can understand how other people would object to that. You want people to f*cking listen to your music? Give them your music. And then go play a show. They like hearing your music? They’ll go see a show.

Amen to that.

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Nov 12 2014
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Advertising, Digital Strategy, Marketing Strategy

Why You Should Still Care About Banners?

No one likes banners.

They are not as sexy as “native advertising” opportunities. Although native advertising is a little bit like gluten, no one really knows what that means.

Banners are not as effective as search marketing. And when we rave about social media and mobile, display advertising is seldom part of that equation (although they are present in both).

Display ads are more of an afterthought. Sausage factory agencies churn mediocre banners out to keep junior designers busy.

But here is the disturbing thing:

Banners still account for 32% of online ad spent. Over one-third of online media investment is going to a format no one could care less. How can that be?

Main reason is laziness. Lazy marketers substitute lack of great idea by producing mediocre or lackluster display advertising to just fill the media space. Lazy agencies do not put any creative thinking behind banners and just do the bare minimum standard static formats.

So banners are not really dead, majority of them just looks really bad.

In last couple of years there has been plenty of innovation within online display advertising. Unfortunately many still live in 90´s banner advertising and have not really recognized the opportunities banners have. NEWSFLASH: banners can and should still play a role in your online advertising. Here are three reasons why:

1. Banners can be more relevant & effective

Thanks to real-time bidding and retargeting, we are able to catch the user based on their behavior. Within right amount of video, search, social media and display advertising we can have relevant message to our audience at the right time throughout their whole digital journey. Banners are not anymore random colorful announcements to buy Viagra, but can truly add value to the consumers based on their online usage.

There are naturally still some growing pains within some shady ad networks and disturbing retargeting, but mainly the future of online display looks more optimized and effective.

2. Banners are now more flexible

Thank you HTML5.

It used to be pain-in-ass to do really kick-ass rich media banners. They cost a lot and needed extra work and multiple rounds with media outlets. You had to mess with Flash and eventually they would not work in mobile devices. Nowadays you have highly innovative ad units straight off the shelves, which work in any device. You do not need to limit yourselves only standard formats anymore. You can innovate more, while still being able to use the reach of ad network.

3. Banners are now more innovative

At the end of the day, it is the creativity you put onto the table, which separates the great brands from mediocre ones.

I agree that banners are the print ads of the digital.

Good creative print ad still works. It gets noticed. It sparks emotion. It makes you think.

That is the first goal for banner as well. With digital you can take it to the next level. You can surprise, delight and interact with the consumer in a way that static ad never can. Just because majority of banner ads are done really badly does not mean they could not be done well. For passionate creative display ads provide great opportunity to flex creative muscle. Just look at this example connecting banners to real-time:

I also recommend watching this “behind-the-scenes” clip about creating the above Nike Phenomenal Shot. Important quote is that you can create “app-like experiences within the ad”. Quite seldom that is the way we approach display advertising, although we probably should.

Online advertising is not a zero-sum game and wise marketers use multiple channels to get results. Brands need to be digital-first and comparing different formats in isolation is not really beneficial. It is about how they work together.

For example, it is not surprising in the studies that pre-rolls work better than traditional display. Pre-rolls are highly forced one-way interruption and also cost more than display (in terms of media and production). How can you compare interactive display ad unit with high engagement rate to just forcing your TVC as a non-skippable pre-roll? Well, you can´t. Pre-rolls play a role in digital marketing mix. And so do banners. And as long we spending shitloads of money to do and show them, could we make them count?

Digital-savvy brands have first and foremost strong creative ideas to catch the attention and interest of their audience. These brands are also fast to adapt and optimize their online media mix to make every dollar count.

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Oct 16 2014
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Advertising, Business, Digital Strategy, Insight, Marketing Strategy, Planning, Social Media, Strategy

Who Will Be The Master of Internet Universe?

Web is dead.

That is the title of one of the greatest articles ever written about digital revolution four years ago to Wired. The main points about that brilliant piece are still valid, although speed of mobile revolution surprised many of the players for a while. The main idea of the story is that web starts to resemble more and more traditional industry with handful of players. Web is oligopoly and certain verticals almost resemble monopolies.

If you simplify the consumer-facing web business (so I am excluding infrastructure and other boring things which is where the real money is), it is about three things: products, commerce & advertising. Products enable you to connect to the Internet: smartphones, computers, watches, television sets, fridges and whatnot. Commerce is about being able to buy things from Internet and advertising is what it is: bombarding you with messages to buy more stuff.

Product category as we know it will eventually be commoditized. If you want to remain premium, you have to innovate constantly. That is the only way to remain luxury brand in this realm. Cheap smartphones will eventually beat the premium ones. In the future you are able to connect to Internet in whatever device and you do not really have to pay that much of that privilege.
Where the growth will come? Wearables can be the future winner product category, although they have not really yet taken off. The changes are rapid though. iPad was launched only four years ago, created totally new category and is currently at risk of vanishing because of the phablets. So is the life.
 
Current champions: Apple, Samsung
Challengers: Xiaomi and other cheap manufacturers
Disrupters: Luxury brands (Would connectivity enhance Rolex? I say not, but I might be wrong as well)

Commerce will become even bigger and you are able to buy pretty much everything online. Will all the physical retail vanish? Not necessarily, but the point is not about that. It is about that you are able to buy everything online, and majority of people will do exactly that, because it is more convenient and affordable.
Commerce is the biggest opportunity and a space I follow most closely. Strong brands will definitely start to create their own online retail experiences, which would enable them to bypass the more traditional retail channels. In the next decade there will be lots of turmoil in this category and many big players will fall and new challengers will arise. Biggest challenges are not that much about technology (lots of payment innovations happening), but about logistics.
Second interesting point is that idea of commerce has changed with shared economy. Both Uber and AirBnB are selling physical service, which would not be possible without digital channel. How far collaborative economy can be stretched remains to be seen. It can potentially be really big disruptor to the way we do business in general.
Last point about commerce is the ecosystem approach. Apple makes money constantly through App Store by enabling others to make money. Facebook is building app ecosystem with the acquisition of Instagram, WhatsApp and Parse. Both Amazon and Alibaba are enabling developers to build things on their platform.
 
Current Champions: Amazon, AliBaba, Ebay
Challengers: Google, Facebook, WeChat, Line, Apple (Apple Pay) 
Disrupters: Brands, FMCG brands, Collaborative economy players (Uber, Airbnb…)

Advertising will be important, because people will keep on buying stuff. Stuff makes us happy. More stuff makes us even happier. How are you able to buy that stuff if you do not know that it exists?
Will advertising become smarter in the future? Yes and no. In last decade or so, we have had one revolutionary advertising idea. That is SEM. You show people ads when they actually want to see ads. Contextual advertising and retargeting have been nice inventions, but mainly advertising is still based on interruption (some of it being more relevant like app install ads). One of the most innovative companies in the world, Facebook, makes most of its money by interrupting its users in various ways.
The advertising business is relatively simple: it is all about reach. All of the most successful advertising platforms are based on firstly to reach and then secondly the quality of those who you are reaching. That is unlikely to change. However, the biggest task is to try to narrow the gap between the interruption (advertising) and purchase (commerce). The monetary exchange is the only tangible KPI we have and less you have to travel to do it, the better.

Current Champions: Google, Facebook
Challengers: WeChat, Line, Twitter (was tempted to leave it out completely, but I give it a shot still), “Traditional media companies”(although I do not really have high hopes for their complete digital transformation, but they will remain influential on this space as well)
Disrupters: Amazon (the closer you are to the actual transaction, the less you have to interrupt), Content owners (although none of them has done any major moves and have mainly milked the status quo)

The lines are naturally blurry. The quote from Eric Schmidt summarizes the whole situation:

“ Many people think our main competition is Bing or Yahoo. But, really, our biggest search competitor is Amazon. People don’t think of Amazon as search, but if you are looking for something to buy, you are more often than not looking for it on Amazon.”

That is also the reason why these big companies are testing weird things and buying obscure companies. Internet has made it easier to disrupt a category and also connect categories in new way. Facebook & Google test drones, so it can bring Internet the people who don´t have it yet. Thus increasing the reach. Amazon tests drones, because shipping is the biggest bottleneck of eCommerce. When your business can start to flourish rapidly, it can also vanish rapidly. There is no time to sleep, because sleep is the cousin of death.

What do you think, who will become the master of the Internet universe?

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Oct 14 2014
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Advertising, Digital Strategy, Insight

Anatomy of An Insight: Base + Spotify PartyDrone

I thought that everything there were left to say about drones was in this ad:

Luckily I was wrong, because this is really nice:

Insight: Many festival sponsors try to catch the attention in the actual festival area. That is hard, as you are competing of the attention with the main attractions: the bands. Therefore wise marketer uses places that are not that contested. Like in this case the route to the actual festival area. Especially in the Nordic music festivals, camping area is quite untapped potential for many marketers and people actually craving for entertainment. Personalization was nice added bonus, but I think that just bringing music and entertainment to places which do not have those, is a great insight and idea.

I see potential for this idea to be used in further campaigns for Spotify as well and not just a one-off. In general, I feel that Drones are perfect fit for surprise and delight –campaigns. Just as long you remember that drone is not the actual idea, but what inspiring, innovative and insightful you can do with the drone.

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