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Tag: Warc’s Toolkit 2017

  • Continuing with our publishing of insights from Warc's Toolkit 2017

    Marketing effectiveness in the digital age: WARC

     

    Marketing effectiveness requires striking the right balance between close targeting and mass reach, and between short and long-term strategies, according to Warc, the global marketing intelligence service, in its trend report ‘Toolkit 2017’ in association with Deloitte Digital.

     

    Said David Tiltman, Head of Content at Warc: “The decision by Procter & Gamble last year to cut back on targeted advertising on Facebook has led to an ‘intellectual battle’ with Media owners – both traditional and digital – engaged in a race to prove how effective their channels are in driving business outcomes, and how best to combine channels,” adding: “The big-picture issue is close targeting (particularly via digital channels) versus mass reach – and a number of FMCG brands have concluded that a renewed focus on reach will drive sales growth. With budgets under ongoing pressure, more studies along these lines can be expected in 2017,” continued Tiltman.

     

    “At a time when businesses are talking about ‘digital transformation’, marketers are ideally placed to engage with customers in new ways across emerging touchpointsin a more informed manner,” added Jason Warnes, Digital Marketing Partner, Deloitte Digital.

     

    Key insights identified in Warc’s Toolkit 2017 on ‘Effectiveness in the Digital Age’ that will impact marketers are:

    1. Major FMCG advertisers are pulling back from granular targeting:
    In August, Procter & Gamble’s Chief Brand Officer Marc Pritchard publically questioned the value of close targeting of audiences on Facebook. In doing so, he cast doubt on one of digital’s key benefits over so-called traditional media – the ability to target more closely – and resurfaced the industry debate on close targeting versus reach.

     

    2. Short-termism weakens links between creativity and effectiveness:

    Research by marketing consultant Peter Field based on data from the IPA, a UK ad agency association, and The Gunn Report, a ranking of creative advertising, found that short-termism and pressure on budgets are weakening creative effectiveness. The shift of budget into digital media, where short-term metrics are common, has exacerbated this shift. In short, the impact of highly creative work has halved since 2011 as a result of these forces.

     

    3. However, digital platforms are making TV more effective:
    A further study by Peter Field and Les Binet of adam&eveDDB suggests that digital platforms can be used to make so-called ‘traditional’ media more powerful than they used to be. They do so in two ways. They provide additional reach for video content by, for example, combining TV with online video. They also provide a wide range of activation channels that can complement the long-term brand-building efforts of other channels.

     

    4. Digital has a ‘reach ceiling’ and is most effective supporting TV:
    Research by Nielsen confirms that TV remains the biggest single driver of reach, ahead of digital platforms. Brands currently investing in TV who want to maintain reach are advised not to go digital-only; doing so may mean they hit a ‘reach-ceiling’. However, digital does add an average incremental reach to a TV campaign of 4.4%. The research also suggested that mobile is now performing on a par with or better than desktop at delivering impressions to an intended audience.

     

    5. Mainstream channels are fighting back in the effectiveness ‘arms race’:
    Industry bodies representing several mainstream media channels have released a number of in-depth studies supporting the effectiveness credentials of those channels. For example, a UK report on radio by trade body Radiocentre claimed that the channel delivered a 7:1 return on investment, and that one of the key benefits of radio is its ability to extend the reach of brand campaigns. Separate research by trade body Newsworks concluded that advertising in newspapers makes TV twice as effective and online display four times as effective.

     

    6. Social sites are starting to focus on business outcomes:
    Facebook has openly criticised some of the measures marketers are using on the social site (and, by extension, other social platforms). It is focusing on research that links advertising exposure on Facebook to sales increases.

     

  • A WARC-Deloitte report puts social video among the Top 6 key trends marketers must watch out for. Here are some insights

    How & Why Social Video can turn marketers into broadcasters

     

    Social video, which involves the dissemination of content in audio-visual format across social media platforms and applications, is experiencing massive growth as a content marketing format, and is expected to continue in 2017. Video is transforming social media marketing and turning social platforms into broadcast media, according to Warc, the global marketing intelligence service. Social video is one of six key trends featured in Warc’s Toolkit 2017. The annual report, produced in association with Deloitte Digital, brings together the best of Warc’s content over the past year – the latest ideas, research and examples. With social media sites now offering a wide range of (paid-for) options for posting and distributing video, brands are finding success with approaches that prioritise quality over quantity, consider emotional and social motivations for content engagement, and focus on a three-second window of opportunity to grab a viewer’s attention. “We’re seeing a growing number of brands experimenting with live video on platforms such as Twitter’s Periscope and Facebook Live and this format tends to work best for content that is exclusive, newsworthy or that requires live audience involvement,” comments David Tiltman, Warc’s Head of Content. “But a major challenge in 2017 will be video measurement.”

     

    Key insights identified on how video is transforming social are:

    1. Social video will see rapid growth in 2017:
    The signs are that marketers plan to increase the amount they spend on social video advertising, with mobile the major driver of investment and the biggest growth area for video. One Forrester report predicted that worldwide advertising spend on mobile video would grow at a 28% CAGR in the next five years.

     

    2. Live video is an untapped opportunity for exclusive or interactive content:

    Live video remains an emerging format, but a wide-range of brands are experimenting with it. Early signs show that sharing and comment rates on live video are higher than for standard video. The main decision is considering which opportunities are right for live video. The guiding principles appear to be whether the video will be exclusive or newsworthy enough to attract a live audience, or whether it requires a level of interaction with viewers.

     

    3. Facebook leads in the ‘broadcast’ model of social:
    The rise of a ‘broadcast’ approach to social media means brands are choosing which platforms will best reach their chosen audience, rather than attempting to entice shares and engagement across all social channels. Facebook is the lead platform when it comes to social media audience reach and popularity, however, platforms such as Snapchat and Twitter offer targeting and formats that may suit certain campaigns.

     

    4. Sharing rates remain a useful measure of engagement:
    As brands invest in paid distribution of social video, sharing has become less important as a means of generating reach. However sharing remains a useful indicator of engagement with a video. As social video continues to grow and mature, marketers are advised to focus on the fundamental motivations behind the sharing of content on social media in order for it to be as effective as possible.

     

    5. Brands are advised to make fewer, better posts:
    As the amount of video content on social sites increases, it is becoming harder to gain consumer attention. Some brands that have been experimenting with social video have concluded that quality (high production values) is preferable to quantity (multiple different videos).

     

    6. Social video has a small timeframe to engage; brands must work ‘with the skip’:
    Brands should look at both the content and context of video consumption. A Millward Brown report concludes that audiences prefer the inclusion of functional aspects that give them control, such as the ability to skip content and click-to-play options. Branded videos that are not advertising also appeal, such as tutorial and review videos, hence brands should consider broadening their strategy beyond paid online video.

     

    7. On mobile, the 30-second ad is becoming the 3-second ad:
    Brands may have only three to five seconds to grab a mobile social media user’s attention. Advertisers should remember that online video is often watched with the sound turned off, so content should make sense to the viewer without sound, and possibly include captions or entice people to turn on the sound.

     

    8. Social video metrics should be studied carefully:
    In September 2016 Facebook admitted to significantly overestimating average viewing times over the last two years. The revelation was significant as such metrics are a factor in marketers and media agencies allocating digital budgets. It highlighted the lack of third-party verification on social sites – and this is likely to be an ongoing theme in 2017.

     

    9. Influencer-focused video is effective as a complement to traditional approaches:
    Online influencers, including ‘vloggers’, have become a focus of advertiser interest. Brands can appear more appealing and enjoyable in a vlogger setting, even if they are limited in reach. Vloggers add credibility, displaying the brand in a new way that’s believable and more relevant than advertising. Vloggers are best for enhancing above-the-line communications, and at presenting the brand in a new way. Critically, they are an addition to, rather than a replacement for, traditional channels.