Tag Archive: data

1. Meta versus TikTok: the battle for our attention

   April 25, 2022 12:34 Comments Off on Meta versus TikTok: the battle for our attention

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   For years, Facebook and Instagram have dominated our social media lives and, indeed, how we behave and interact across the internet. Facebook Meta has come to shape our online lives, and its influence is so vast that bodies such as the European Union and the US congress spend huge amounts of time and money working out how to exert control over it. But for all Meta’s dominance of our time and attention – and the ad dollars of millions of advertisers worldwide, its confidence appears to have been wobbled by an ‘upstart’ – TikTok. The Chinese-owned video-sharing platform soared in popularity during the pandemic and has morphed from a lip-synching and dancing app to one that creates trends and forges deep connections between creators and users, keeping the latter engaged video after video. And now, the cracks are starting to show at Facebook, which has just reported its first-ever decline in daily active users (DAUs). The battle between Meta and TikTok is on.

   Meta – the reigning monarch

   Facebook’s dominance of the social media industry is still undisputed. In Q4 of 2021 it boasted 2.9bn monthly active users – not far off half the Earth’s population. Meta, Google and Amazon together accounted for more than 74% of global digital ad spend in 2021 – which is more than 47% of all money spent on advertising in that period. Meta’s share of the digital ad market is 23.8%.

   But there are signs of trouble ahead for the social media giant – and signs that it is nervous too. It is facing a challenge in terms of both user numbers and advertising, reporting their first-ever quarterly decline in DAUs in the fourth quarter of 2021. Facebook lost around 500,000 daily users in the last three months of 2021. The number of monthly active users on Facebook stayed relatively flat, while growth across Meta’s other platforms – WhatsApp, Messenger and Instagram – was modest. Furthermore, Buzzfeed found that audiences are spending less time on Facebook. This decline in time spent on Meta’s platforms puts direct pressure on ad spend. That pressure is exacerbated by the economic pressure that many small businesses are facing as the world emerges from the Covid-19 pandemic; these small businesses make up a large part of Meta’s advertiser base and, if they are having to cut down on their ad spend, Meta’s ad revenue will inevitably suffer. Insider Intelligence has lowered its forecast or Meta, predicting that the company’s revenue will decrease by $2.5 billion in 2022 and 2023. The company’s share of digital ad spend will fall under 22% by 2023 – down from 25% in 2020.

   TikTok – the pretender to the throne

   The fact is, those daily users and ad dollars are going somewhere. In a rare direct nod to competition (quite possibly because of the various antitrust lawsuits that Meta is facing), Mark Zuckerberg emphasized the threat Meta faces from platforms such as TikTok and YouTube, as people are increasingly drawn toward short-form video content.

   YouTube has been big for a long time, but TikTok’s ascendancy over the last few years has been meteoric. It got its billionth user in 2021, just four years after its global launch; that’s half the amount of time it took Facebook, YouTube or Instagram, and three years faster than WhatsApp. TikTok was the world’s most downloaded app in 2020, and in 2021 it became the first app not owned by Meta to cross the 3 billion app download mark. Also in 2021, the typical TikTok user spent an average of 19.6 hours on the app every month – more or less equalling Facebook.

   And it’s not just user figures that suggest that TikTok is the one to watch. It is also the most lucrative app globally for in-app purchases. Users spent $850 million on TikTok’s virtual ‘Coins’ currency in the first quarter of 2022. What’s more, the company’s unique approach to social commerce, which involves pairing marketers with content creators, drives huge demand for products: the #TikTokMadeMeBuyIt hashtag has had over 11.5 billion views.

   All this is propelling TikTok’s ad revenue: in 2022, it is expected to bring in $11.64 billion – that’s triple its 2021 figure and more than Twitter ($5.58 billion) and Snapchat ($4.86 billion) combined. It’s still small in terms of share of the digital ad market – but Meta evidently still feels threatened.

   Meta and TikTok: A play for the crown

   TikTok’s huge growth in the last few years, its clever social commerce strategy and the fact that it is winning the battle for the hearts, minds and attention of under 25-year-olds (and indeed under-18s) – which happens to be where Facebook is suffering its most significant declines – means that Meta is paying attention and reacting accordingly. The tech giant needs to maintain its ad revenue until the metaverse – into which it has invested heavily – takes off (if it takes off). It does not want an ‘upstart’ like TikTok snapping at its heels.

   Meta’s reaction to the TikTok threat seems to be “if you can’t beat ‘em, join ‘em”. Its Reels product is a direct rival to TikTok’s short-form video format. Mark Zuckerberg admitted in an earnings call that Reels is a major part of Meta’s TikTok defence strategy. They are also exploring the introduction of virtual coins on Facebook and Instagram, nicknamed ‘Zuck Bucks’. It is, however, interesting that Meta’s investment in these projects has been limited – especially given that Zuckerberg has form for investing in projects that he does believe in, such as the metaverse.

   However, Meta is not just using product innovation or imitation in order to keep the TikTok threat at bay. It was revealed recently that it hired a Republican consulting firm in the US to seed public distrust around TikTok. Op-ed and letters to the editor in various local publications have expressed concern that TikTok poses a danger to American children – particularly in relation to the fact that it is Chinese-owned and holds an extraordinary amount of data on teenagers across the world. Meta has defended the campaign and its actions, saying that it believes that all platforms should face scrutiny consistent with their size and success. The eagle-eyed have noted, however, that the thought-pieces in question have criticized trends that have gone viral on TikTok – but originated on Facebook and Instagram.

   The political angle

   Given Meta is a huge American tech company, and TikTok a huge Chinese one, it’s impossible to discuss this matter without touching on global politics. There is a tendency in the West to see the West as a bastion of democracy, free speech and freedom – and to see the ‘rest of the world’ but particularly China and Russia as restrictive, non-democratic and, in the case of Russia, outright aggressive. The fact that TikTok is Chinese owned may well have an impact on its future in the West. The app is already banned in India, and many other countries have considered banning it; the Trump administration in the US toyed with the idea of forcing the sale of the American business to an American company, but this idea was dropped after Trump lost the 2020 election. TikTok collects an enormous amount of data – it is, for example, using facial and voice recognition, even in the US. The fear is that the governing Chinese Communist Party (CPC) will use this very private data to its advantage – and given that they are closely involved in all major Chinese companies, it’s naïve to believe they are not doing this.

   That said, the West also has access to a staggering amount of data. The US can access all data that passes through servers in the US, and the data offered by data brokers from cookie and app data gives anyone who wants it far more intelligence on our behavior than we could reasonably expect them to have – and both the West and the East can use and abuse that data.

   These data flows are likely unsustainable in the long-term – individuals and regulatory bodies will demand more privacy in the future, even if market changes are slow to catch up. We are already seeing increased scrutiny on Meta in the US, the EU and beyond – TikTok will undoubtedly not be immune to it.

   So – is the future TikTok’s?

   While Meta is still by far the biggest social media company, and has a huge percentage share of the digital ad spend market, dwarfing TikTok’s, it is obviously flustered by TikTok’s success, especially when compared to its own stagnating and even declining figures. Facebook has more users, but TikTok has the attention of the demographic that advertisers most want to target and form a relationship with. Both companies will continue to be scrutinized for how they handle data and privacy – we all know the level of scrutiny that Meta faces, and TikTok – being Chinese-owned – will need to get used to a similar level of enquiry.

   For the last couple of decades, Facebook has had huge influence on how people across the world behave on the internet and even off it. It has changed how we interact, how we discover news, brands and products, even how we speak. But with young people devouring short-form video, interacting with creators and buying socially, it looks like the next two decades could well belong to TikTok. And marketers – particularly, but not exclusively, those who want to target a younger audience – should make plenty of space in their marketing plans for the Chinese-owned platform.

   Header image: Kaspars Grinvalds/Shutterstock

2. Key insights from the ANA Brand Masters 2020

   March 11, 2020 17:29 Comments Off on Key insights from the ANA Brand Masters 2020

   By Victoria Potter, US Business Director at ECI Media Management

   ECI Media Management has just returned from an inspiring and informative few days at the ANA Brand Masters in Phoenix last week, and we took home valuable learnings from the talks and panel discussions. Brand Purpose was a key topic, with many conversations around how brands can earn the trust of consumers.

   Our US Business Director, Victoria Potter, shares her key insights from her time in Arizona.

   Insight 1: Data turns sparks into flames

   Time and time again, brands turn to data to take a small spark and turn it into a flame. Those small sparks could very easily be ignored and extinguished. However, with just a little bit of oxygen, they become blazing fires.

   Boston Beer noticed a spark in the form of spiked seltzer, and just three years later, the hard seltzer category (of which their brand, Truly, has the number two ranking) has achieved a value of $2 billion, an increase of 275%.

   Crocs, suffering from a relevance problem, embraced their individual identity with a boost from Ariana Grande. They revitalized the brand by embracing a ‘Come as you are’ mentality to provide space for free expression.

   Insight 2: A brand without trust is just a product
   

   The digital age in which we live creates a strange dichotomy between the personal and impersonal. Making your brand valuable in a consumer’s eyes goes beyond price. One of my favorite quotes of the week was from Brian McCarter (Ogilvy EMEA), representing Dove: “A brand without trust is just a product”.

   However, Manos Spanos from Danone pointed out another important truth: brand purpose doesn’t have to be about saving the planet. Having a purpose and truth to your brand is important, but not all brands need to be about saving the world. For Danone, that meant recognizing that Oikos, a great source of protein, could help NFL footballers with their “bubble butts”. This brand purpose is no less important from a brand perspective than Honey Nut Cheerios’ ‘Future with Bees’. The key to trust is being true to yourself. As Boston Beer CMO Lesya Lysyj stated in her fourth rule – Play Your Own Game.

   Insight 3: In the age of data and AI, the human element is just as important

   Danone is bringing together humans and AI by creating great content that lives the brands’ truth, but uses AI to determine the efficacy of the creative.

   Boston Beer noticed a small piece of data indicating strong BoDeans sales in Montana and Maine. Humans helped develop that data into a rebrand which helped reinvigorate and relaunch the brand.

   Caterpillar embraces the complementary relationship between humans and machines, championing automation as a way to get more work done remotely, keep workers safer, and for longer periods of time.

   Insight 4: If at first you don’t succeed…

   One of the ‘four rules of marketing’ that Boston Beer shared was ‘Get it out fast, even if it’s wrong’. It sounds counterintuitive, but they pivoted a five-state launch into a national launch in just seven days, in the knowledge that they might not have it all right. However, three years later, the success of the brand speaks for itself. Admittedly, plenty of mistakes were made, but they stuck with it to get great results.

   One of the key insights from OK Cupid’s CMO was that ‘this may not work, but the win is in the insight’. Sometimes trying something and not getting it right is just the information you need to get it right next time.

    

   If you’d like to discuss anything you have read here, please don’t hesitate to get in touch: value@ecimm.com

   Image: Sean Pavone/Shutterstock

3. Should Google be worried about Amazon?

   October 23, 2019 11:14 Comments Off on Should Google be worried about Amazon?

   It’s no secret that Amazon is no longer ‘just’ the world’s biggest retailer. Its ‘other’ business – digital advertising – is having a seismic impact on the advertising industry, so much so that is now a threat to the traditional digital advertising duopoly, Facebook and Google. This week, eMarketer released a report claiming that Amazon is ‘chipping away’ at the very core of Google’s business – search.

   Amazon is increasing its share of US digital ad spend

   Amazon’s star has been on the ascendant for a significant period of time, but 2019 has truly been a stellar year. Revenue for its ad business climbed by 37% to $3 billion in the second quarter of 2019, while back in February eMarketer predicted that Amazon would claim 8.8% of US digital adspend this year, up from 6.8% in 2018. This is impressive in itself, but even more so when you consider that Google’s share was predicted to drop to 37.2%, down from 38.2% in 2018, while Facebook would only increase theirs by 0.3%.

   Google’s near-monopoly of search is set to decrease

   This was the backdrop for the latest eMarketer report about Amazon’s search share. The US search market is set to grow by 17% this year, to a huge $55.17 billion. While Google still of course owns the lion’s share of the market, with 73.1% ($40.3bn), eMarketer anticipates that that will fall to 70.5% by 2021. Amazon, on the other hand, is expected to have grown its share of the market to 12.9% by the end of 2019, and to 15.9% in 2021. Microsoft has now been relegated to third place in the search market, with a 6.5% share.

   What’s behind Amazon’s success in the space?

   So what is behind Amazon’s increasing prominence in digital advertising? The key reason is its understanding of consumers’ purchasing behaviours. It has a treasure trove of data about buying habits which is of course very valuable for advertisers, as they can reach customers right at the time that they intend to make a purchase. Amazon’s data even allows advertisers to understand when a buyer might want to repurchase a product, so that they can be targeted at the right time, with less wastage.

   Consumers’ research behaviour is changing as well: they now increasingly use Amazon as a research resource rather than just a purchasing platform, and use broader search terms such as ‘gift’ or ‘makeup’, offering ample opportunities for brands to reach them. And it’s not just brands that sell directly on Amazon that can benefit; advertisers that sell products and services that can’t be bought on Amazon, such as cars or insurance, can use the retailer’s extensive customer data to understand who might be interested in buying their products. Finally, Amazon has very high conversion rates, particularly for products sold on their platform: 20-30%, versus 1-10% on Facebook, for example, where ads are seen as more intrusive and trust is an issue.

   Harnessing its advantages

   Amazon has wasted no time in harnessing these advantages over its competitors. Last year, it simplified the branding for its advertising products, creating Amazon Advertising. This includes sponsored ads which work in a similar way to Google search, allowing advertisers to bid for search terms, with the highest bidders more likely to appear in ad listings. Display ads are available programmatically for both Amazon and third-party sites using the Amazon DSP, which allows advertisers to see easily how well their media spend translates into sales.

   In 2018, Amazon acquired Sizmek’s adserving and dynamic creative units; the dynamic creative allows for more tailored ads which incorporate data such as location or shopper behaviour, while the ad server side helps advertisers to place ads and measure effectiveness, helping Amazon to better compete with Google. Overall, these acquisitions have helped Amazon improve the functionality that had been lacking in comparison to its two major competitors in the digital advertising space.

   An unexpected benefit for both Google and Amazon

   While Google will no doubt be alarmed that Amazon is encroaching on its search dominance, there is something of a silver lining. Both organisations are being examined by regulators at the Department of Justice and the Federal Trade Commission – Google because of its search stranglehold and Amazon for using its e-commerce marketplace to promote its own brands over those of rivals. While these investigations continue, it won’t hurt either of them to have increased perception of competition.

   An increasingly important player

   As Amazon increases its functionality and collects and organises evermore customer data, it will become an increasingly important player in the digital advertising sector and undoubtedly an ever more worthy recipient of valuable ad dollars. Advertisers – even those that don’t sell via the platform itself – should seriously consider Amazon’s advertising solutions for three reasons: lower pricing thanks to increased competition in the search space; remarkable conversion rates; and Amazon’s wealth of rich data from its sales funnel.

   Image: Shutterstock

4. Apple is retiring its iconic iTunes in a move reflective of a changing industry

   June 10, 2019 10:48 Comments Off on Apple is retiring its iconic iTunes in a move reflective of a changing industry

   Apple is retiring its iconic iTunes in a move reflective of a change in industry

   Back at the beginning of the millennium, the music industry was in a serious state. CDs were in decline as consumers digitised the way they consumed music: but they were doing it for free via Napster and other pirate websites.

   And then, in 2001, the industry’s knight in shining armour appeared, in the shape of Steve Jobs. He announced the birth of iTunes at the Macworld Expo, heralding a music revolution. The era of MP3 music was here, and over the next six years Apple would sell more than 100 million units of the iconic iPod with which to listen to those MP3s. Apple was at the pinnacle of its success, having redefined what music ownership looked like: no longer physical records, tapes or CDs, but a world of songs in your pocket.

   In the 18 years since its launch, iTunes has become a media behemoth, a one-stop shop for users to consume not just music, but movies and TV and, latterly, podcasts too. But over the last few years, downloading has been eclipsed by a new kind of access: digital streaming.

   A new contender in the market

   In 2008, just a year after the launch of the first iPhone and when iTunes was at the height of its powers, a small Swedish start-up called Spotify launched its music streaming service across eight European markets. Its two-tier model – free to the consumer ad-funded, and a premium subscription option – gave users on-demand access to stream millions of tracks. Music streaming was still in its infancy, accounting for just 1% of global music revenues in 2007, and Spotify’s initial growth was good but unremarkable. By 2013, they had 30 million active users and 8 million premium subscribers.

   It is the six years since 2013 that have seen a seismic shift in how music is consumed. By March of this year, Spotify’s user base had skyrocketed, with 217 million active users and 100 million premium subscribers around the world, a number which looks set to continue growing. By opening up the streaming market and persuading users to give up ownership of their music, Spotify has arguably redefined the music industry, just as Apple did when it persuaded users to give up physical ownership.

   The consolidation of Apple

   iTunes’ download model was starting to look clunky and old-fashioned. In 2015, Apple launched Apple Music, its streaming service which it hoped would compete with Spotify and other broadcasters with its three distinct components – on-demand streaming, radio and Apple Connect, which allows artists to upload songs, videos and photos for followers. Since then, as streaming has increasingly become the norm, there have been rumours that iTunes would be wound down.

   That finally came to pass this week, as Apple announced at its annual Worldwide Developers Conference in San Jose that it would replace iTunes with standalone music, television and podcast apps. This will align Apple’s media strategy across the board: iPhones and iPads already offer separate apps for Music, TV and Podcast, and Mac/Macbook users can expect the same.

   However, the move is symbolic as well as practical. As Amy X Wang says in Rolling Stone, “by portioning out its music, television and podcast offerings into three separate platforms, Apple will pointedly draw attention to itself as a multifaceted entertainment services provider, no longer as a hardware company that happens to sell entertainment through one of its many apps” – and that’s increasingly important as iPhone sales have started to slow. Garden Tower 2 can be used inside or outside. However, most people use theirs indoors. The reason is that the composter was originally marketed for those living in cities with small homes and no private outdoor space. It’s the perfect solution to having your own garden in an urban apartment environment. Read our detailed Garden Tower 2 review to decide if this innovative kitchen composter is right for you. The composting container’s rotating design ensures each plant gets adequate sunlight. The rotating feature also makes it easy to access all of your plants.

   Consolidation moves reflecting the wider market

   This move towards entertainment services is being seen across the technology and communications sector: we’ve seen the tech giants buy up rights to live sport, while AT&T acquired Time Warner for $85bn and Disney bought most of the 21^st Century Fox empire, fending off an offer from Comcast. This trend is of course being driven by changing consumer behaviour as internet connections over 4G and now 5G accelerate – allowing for uninterrupted streaming of music, TV and films. We’re seeing the effects of technology on the media and communications industries, and lines between these sectors will continue to blur. This blurring of boundaries will then pose another issue on how they can all be monitored & assessed both separately and in totality.

   Image: Shutterstock

5. Changing the rules of the internet: can Zuckerberg turn around Facebook’s fortunes?

   May 30, 2019 10:15 Comments Off on Changing the rules of the internet: can Zuckerberg turn around Facebook’s fortunes?

   After a difficult year, Facebook is looking for solutions

   Facebook is facing heavy scrutiny from people and governments across the world after a range of transgressions: the Cambridge Analytica scandal, the hiring of a PR firm to attack George Soros, the departure of 10 top executives and the livestreaming of the Christchurch terrorist attack among them. These and other issues have forced Zuckerberg and his senior management team to appear before governmental committees and the press to explain exactly how they are going to change. This was all reflected in Facebook’s share price, which peaked in July 2018 but had plummeted by 40% by the end of the year.

   The conclusion? Facebook must focus on real, meaningful evolution in order to ensure a prosperous future – and that’s just what they appear to be doing.

   More cooperation between governments and tech companies

   After months of appearing before government committees and journalists around the world, in March this year Mark Zuckerberg seemed to finally kick off the evolution that his organisation so urgently needs. Having rejected demands for increased regulatory oversight of Facebook for years, in an editorial in the Washington Post Zuckerberg called for more cooperation with governments to deal with the problems posed by internet platforms and emergent internet technologies: “By updating the rules for the internet, we can preserve what’s best about it – the freedom for people to express themselves and for entrepreneurs to build new things – while also protecting society from broader harms”.

   Changing the rules of the internet

   Zuckerberg argued that there were four areas that would require deeper cooperation between tech companies, governments and regulators: harmful content, election integrity, privacy and data portability. Measures he suggested included the creation of an independent body to review Facebook’s content moderation decisions and the formation of a set of standardised rules for harmful content; regulation for common standards for verifying political actors; a focus on creating laws that address advertising for divisive political issues; and GDPR-type regulations across the world. Nick Clegg, the head of Facebook’s global affairs and communications team, spoke about how “the way that the rules are drawn – or not drawn – will be quite different to how they are drawn in ten years’ time… and I think big tech companies have a choice: either they play ball and they try to play a responsible role in that debate, or they try to duck it all together.”

   Practical changes for the Facebook platform

   Facebook hasn’t stopped at promoting cooperation between tech firms and governments: the evolution strategy has also extended to a series of changes, announced in April, that ‘put privacy first’ because ‘the future is private’. These changes include encrypting Messenger messages and fully integrating the Messenger platform with WhatsApp; trialling a ‘private like counts’ feature; and ways of sharing content without a permanent record. Furthermore, the company is rolling out ‘FB5’, an aspirational redesign of the platform that puts the spotlight on what Facebook would like to be – thoughtful, meaningful and calm. The Groups functionality will be central, and there will be an increased focus on Marketplace as well.

   Other ideas for how to control Facebook

   The challenge facing those governments and regulators with whom Zuckerberg wants to work to create a new, brighter internet is massive. Siva Vaidhyanthan notes that “regulators are trying to address Facebook as if it’s like companies they have encountered before. But Facebook presents radically new challenges. It is unlike anything else in human history – with the possible exception of Google.” Governments are trying: the UK, for example, proposed a duty of care standard for platforms to ensure they filter harmful content, and the US government is expected to issue a $5bn fine for the violation of a 2011 order preventing the distribution of user data to companies such as Cambridge Analytica. But Vaidhyanthan compares this approach to dealing individual weather events rather than tackling climate change. Others have suggested more radical approaches: Facebook’s co-founder Chris Hughes called for Facebook to be broken up because “Mark’s influence is staggering, far beyond that of anyone else in the private sector or government. He controls three core communications platforms – Facebook. Instagram and WhatsApp – that billions of people use every day… The government must hold Mark accountable.” Meanwhile, US senator and presidential hopeful Elizabeth Warren proposed dramatic antitrust regulations, and a Bloomburg article suggested that, as social media has been proven to be addictive, it should be regulated in the same way as the tobacco, alcohol and gambling industries – and not the communications industry.

   Radical solutions for a brighter future

   The issues that Facebook faces are dramatically different to, and more important than, those faced by any other company, and they require dramatically different solutions. The varied approaches announced by Facebook in recent months are collaborative, radical and positive, and we at ECI Media Management look forward to seeing them come to fruition. Train your Attack, Strength and Defence levels with iFighter, the best free combat bot for OldSchool RuneScape

   With increased transparency in the Facebook marketplace, response from consumers is likely to be varied. Users, Governments and Corporations alike should clearly understand how their data is being used by Facebook to target Ads. Changes to transparency and the required investment into security, will no doubt impact the firm’s profits. As customers and co-operations learn more about the result of their time and investment into the platform, initially it is likely demand for the Ad space will see a minor drop, before companies become educated on how to utilise on this newfound transparency. At ECI Media Management, we recognise the value and immense scale of Facebook, which will be crucial to monitor as it moves into this new era.

   Image: Shutterstock

6. US senator and presidential hopeful Elizabeth Warren takes on Big Tech

   May 3, 2019 15:10 Comments Off on US senator and presidential hopeful Elizabeth Warren takes on Big Tech

   Embattled tech firms face a new challenge

   There’s no denying that the tech giants are having a hard time of it at the moment. There have been the scandals that we’re all so familiar with: Facebook is still dealing with the fall-out from the Cambridge Analytica affair as well as accusations that it allows interference in national elections, while earlier this year Google once again had to face the wrath of angry advertisers whose ads had been run alongside inappropriate content on YouTube. They’re also facing numerous legal challenges from national and EU lawmakers in Europe over issues such as privacy, fake news, tax and competition – and of course there is GDPR to contend with.

   Into this rather bleak landscape strode Elizabeth Warren, a Democratic candidate for the US presidential election in 2020. In a blog post Warren laid out a plan to break up the tech giants, namely Amazon, Facebook and Google, by forcing them to divest some of their biggest acquisitions and money-spinners.

   Why is Warren proposing such radical antitrust measures?

   So what are the reasons that Warren gives? There are two key ones: in her view, the big tech companies damage small businesses and innovation which stifle healthy competition. In effect, she believes that Facebook, Google and Amazon in particular have too much power over the economy, society and democracy. Facebook scored an own goal by promptly removing her ads around this issue from the platform. It later restored them, but they had neatly illustrated Warren’s point for her (!).

   What would these antitrust regulations mean?

   The implications of Warren’s proposals are huge. She would pass legislation designating platforms with more than $25bn in revenue as ‘platform utilities’, which would be banned from owning both the platform and the participants at the same time. This would mean that, for example, Google would need to spin off Search, with Amazon doing the same with Marketplace. Perhaps even more dramatically, Warren also claimed that she would appoint regulators to reverse mergers that had already been completed – including Facebook’s purchase of Instagram and WhatsApp, and Amazon’s acquisition of Whole Foods. This would lead to a world where Facebook would be competing with Instagram and Amazon’s power over sellers – and buyers – would be curbed significantly.

   Warren wants to implement these measures to “restore the balance of power in our democracy, to promote competition, and to ensure that the next generation of technology innovation is as vibrant as the last”. She points to the antitrust case involving Microsoft in the 1990s which forced the ‘original’ tech giant to behave with increased restraint into the new millennium and, argues Warren, paved the way for the growth of the very giants she now wants to shrink.

   Are there alternative ways to promote competition?

   Warren is not alone in wanting to address the huge power held by the tech giants, particularly as the public feels increasingly uncomfortable about the amount of power they wield, but she is the first to have crossed the threshold to an antitrust solution. Of course, the chances are that Warren will not be the next President of the United States (she’s up against many other Democratic candidates, not to mention the incumbent) and, even if she is, many believe that her measures will be extremely difficult to implement. However, what is undeniable is that the tech firms must evaluate how they operate in order to regain trust from users and from governments. A middle ground could be, as suggested by the Report of the Digital Competition Expert Panel, which was commissioned by the British Government and led by Barack Obama’s economic adviser Jason Furman. The report recommends a new regulator to force firms to ‘rewire’ themselves so that users have more control of their data and can switch between providers; it also suggests modernising antitrust rules.

   As ever, Google, Facebook and Amazon have an uphill struggle on their hands, and they must examine their business models hard if they are to continue their success and deflect the scrutiny of governments across the world.

   Image: Shutterstock

7. The reincarnation of audio

   March 22, 2019 16:50 Comments Off on The reincarnation of audio

   The last decade has seen a huge focus on digital and visual innovation in the advertising industry; but marketers and practitioners have always known the value of non-intrusive, highly accessible and limit-free advertising, which is why we are seeing a recent re-incarnation of audio for this generation.

   Divergence and evolution

   The audio marketplace has seen a divergence and then evolution from the standard radio format towards the podcast and music platforms, although radio still remains crucial. The beauty of these mediums for the advertiser is the ad: no blocking and no ‘peak-time’ engagement driving up prices.

   Demand for on-demand audio driven by commutes and smart speakers

   On-demand audio streams surpassed 400bn in 2017, compared to 252bn in 2016. Commuting times are rising as people seek more peaceful lives outside of cities, and rail commutes are on average 2 hours and 11 minutes: it’s no wonder that the demand for podcasts and other on-demand audio has risen so dramatically. Furthermore, smart speaker streaming helped to drive an 8% increase in the number of hours spent listening to digital broadcasts in 2018 versus 2017. The resurgence of audio should not go unnoticed.

   Is the marketplace ready for digital audio?

   Whilst the marketplace re-aligns with its audio roots, it is inevitable that there will be challenges for media planners, advertisers and auditors alike. The proliferation of streaming, smart devices and wifi has given consumers greater autonomy over their time and their method of consumption. Whilst this provides excellent opportunities for reach and brand awareness for advertisers, it begs the question: does the marketplace have the tools and devices ready to provide accountable and accurate tracking and analytics? Until these tools are standardised and harnessed across the market, it is likely the adoption of digital audio into media planning will remain consistent, but slow. Investment into this medium will be a lower priority until it can be demonstrated that digital audio outputs add strong, measurable value.

   Alongside this tracking and analytics issue, the industry will need to work out how to harness the increased quantity of data in order to drive further engagement with consumers. While digital audio attracts investment with an environment that is free of ad-blocking, it does create a transparency issue for the consumer-agency-platform owner relationship.

   An exciting future for audio

   The future of digital audio is an exciting one. The integration of programmatic audio is set to   propel audio back onto the main stage of advertising channels. Programmatic advances will increase campaign ROI, augment automation and decrease audio costs. The combination of these factors, alongside the accessibility and increase in the number of platforms will see marketers, advertisers and auditors being forced to become more innovative and dynamic in a format once seen to be traditional and static.

   All hail the return of audio: finally, our eyes will be given a rest from mobile screens!

   Image: Shutterstock

8. AI will make personalisation even more powerful: advertisers must exercise restraint

   March 10, 2019 22:31 Comments Off on AI will make personalisation even more powerful: advertisers must exercise restraint

   In advertising, personalisation is king. As the mantra goes, right message, right time, right place – if you can tick all three of those boxes, your ad will be much more relevant to the consumer and therefore so much more powerful. In the rapidly approaching age of artificial intelligence, it will be easier than ever to personalise your advertising: when machine learning is applied to the vast quantities of data, advertisers can understand the motivations of almost every consumer on the planet. That promise holds a great deal of power and potential wealth, but as they say – with great power comes great responsibility, and advertisers must consider carefully how they will use and handle customer data.

   Personalisation will become ever easier with widespread uptake of AI

   Advertisers are understandably excited about the prospect of artificial intelligence; just twenty years ago, it was almost inconceivable that brands would be able to directly target individual consumers based on their unique behaviours and motivations, with messages that were relevant to them. To an extent it is possible now, but it will become increasingly easy as artificial intelligence becomes more widespread, particularly as it is harnessed by programmatic platforms for real-time optimisation, for example.

   But personalisation can annoy consumers

   Some research indicates that consumers actively want advertising that is relevant to them; indeed, they’re even willing to give away their personal data for more personalised advertising. But there’s a fine line between advertising which is more powerful because of its relevance, and advertising which is annoying or just plain creepy. That’s down to a number of factors: bad targeting, use of sensitive personal data, placement, frequency or a lack of relevancy. You can understand why. If, for example, a consumer has recently purchased a pair of blue shoes online and is stalked around the internet by ads for blue shoes, it’s annoying and the ad simply serves to remind him or her that their activity is being tracked – they no longer need blue shoes. Ads for a blue handbag, for example, or for nice socks, might be more relevant – but that is when the mighty GDPR starts making its presence felt. The EU data regulations, which any advertiser with a European target audience will be all too aware of, make the transfer of consumer data between one company and another very difficult.

   Of course, this example assumes that there are two companies involved, and that the brands themselves are doing the selling. The inability to share data will give more power to the platforms where consumers can buy from a large selection of brands: they will be able to harness their first-party data to build a more complete offering for their consumers, and more targeted marketing. The brands themselves could begin to lose the battle to understand and successfully reach audiences.

   Where is the line between persuasive marketing and behaviour control?

   Brands shouldn’t just be concerned about not annoying consumers. The amount of data at their disposal – and the tools available to process and understand it – means that they can have an astonishingly complete understanding of their consumer – and that means marketing which is too effective and too persuasive. The art of persuasive marketing could be elevated into the science of behaviour control. Layer that with the ability to exploit people’s inherent prejudices and insecurities and we’re into some seriously apocalyptic territory. Need we mention Cambridge Analytica?

   The golden rule: always remember the data belongs to the consumer

   In order to avoid annoying consumers and indeed to avoid straying into unethical territory, the answer is to always remember one golden rule: a consumer’s data belongs to that consumer, and must be handled with the care and respect that would be afforded to their other possessions. When collecting data, be transparent: explain how you will use it and ask for the consumer’s consent. Like any relationship, trust is critical and transparency is the way to earn that trust. Personalisation must be voluntary, overt and transparent.

   Thumbnail image: Shutterstock

9. Out of home: rising above the clutter

   January 16, 2019 20:49 Comments Off on Out of home: rising above the clutter

   In a fully mobile world, where the average person spends hours a day on their smartphone and targeted ads are standard, out of home (OOH) can seem a little out of date. Don’t write it off yet though – it appears to be enjoying something of a resurgence. Many brands including, perhaps ironically, the big tech brands such are investing a huge amount in this medium; Apple, Netflix, Amazon and Google are four of the 10 largest spenders on billboards. The figures back this up: outdoor ads were the only ‘traditional’ media category to show growth in the US in 2018, with an estimated $33.5bn in revenue, with digital out of home (DOOH) being the main driver with growth of 16%.

   What’s behind the renaissance of outdoor advertising? There are three key drivers: it’s impactful, innovative and effective.

   Impact

   In a world of palm-sized screens, the sheer size of a billboard and its large, uncluttered layout give it impact that a mobile ad would find it very difficult to deliver. What’s more, while consumers can – and do – ad block on their mobiles and desktops, you can’t block real life. So it seems that the rise of OOH is partly a response to digital fatigue amongst consumers and the advertiser’s quest to reach them in a fresh way that will have the desired effect. However, the rise of this medium is also partly because of the overall shift to digital advertising: many OOH companies are harnessing the power of technology that are increasing impact and relevance.

   Innovation

   Over the last few years, OOH has had to become rapidly more tech savvy to stave off irrelevance. Innovations abound, largely to make the medium more responsive, interactive and, critically, targeted, so that it can compete with digital advertising in terms of relevance. Location and contextual data are crucial to the success of the OOH format as they can be used for increased targeting. Many companies working in this space are creating technological innovations that have brought OOH right into the 21^st century. Clear Channel’s Radar programme uses global positioning data from mobile apps to understand who is passing by its signage, whilst startup AdQuick has developed a range of new targeting and measuring tools, including integrating digital voice assistants so passers-by can ask for more information – and therefore provide more data for advertisers to use. Google is, of course, putting its targeting and programmatic expertise to good use in the space, grabbing extensive demographic data from Android owners passing by, and even started to test its DoubleClick ad technology in London, allowing advertisers to purchase ad space on screens across the city programmatically. This opens up the opportunity to respond in real-time to events such as beer ads for the Friday commute home.

   Of course, geo-targeting is a key feature in today’s digital OOH. It allows fixed screens to surface information that people want or need in that place, at that time, therefore adding value to the consumer’s day, while OOH in situations like taxis can respond to changing points of interest as the vehicle passes. All this leads to dynamic, interesting and valuable content.

   Even more futuristically, artificial intelligence (AI) is helping marketers to personalise OOH content and make it more engaging. One such innovation is technology that detects the facial features and expressions of a passer-by and determine whether they are happy, surprised, sad or angry as well as their gender and approximate age, all with remarkable accuracy. This of course allows advertisers to deliver in real time the ad which will resonate best with the consumer.

   It used to be that OOH’s key purpose was to drive traffic to bricks-and-mortar shops, but with so much innovation going on in the space, the medium can now drive a specific action and interact in a personalised and targeted way – and that makes it so much more effective than it used to be.

   Effectiveness

   Technological advances and, conversely, digital fatigue amongst consumers has brought about a renaissance for OOH and have made it a highly effective medium. Being able to understand the geographic and demographic context of a billboard’s surroundings – and change content accordingly in real time make it a valuable weapon in the advertiser’s arsenal. Furthermore, rather than replacing other media, it works well in conjunction with other channels and can even amplify them. Mobile click-through rates increase 15% when supported by OOH ads, according to WARC, and 46% of US consumers have used a search engine after seeing an OOH ad. It even intersects with social media: research by Nielsen revealed that one in four American adults has posted a photo of an outdoor ad on Instagram – that’s much higher than TV, radio, print or digital banners. Xannonce When Spotfiy turned a New York subway into an art installation, it reached 50 million people on social channels, with no paid amplification.

   All this means that the ROI for OOH in the US is remarkably high: each dollar spent on OOH advertising drives an average $5.97 in sales – that’s 40% higher than digital search.

   An innovative ‘push’ medium

   Gone are the days when a billboard was a passive brand-building format. It’s now a dynamic, innovative medium that has the ability to engage with, entertain and add value to consumers, pushing them towards a purchase in a way that can seem less intrusive than a mobile ad. In an age where consumers are being targeted by advertising from all angles, an effective, innovative and impactful out of home campaign might just be the way to rise above the clutter.

   Thumbnail image: Shutterstock

10. The creation of Wunderman Thompson: is it really the answer?

    December 19, 2018 15:12 Comments Off on The creation of Wunderman Thompson: is it really the answer?

    The latest in a series of WPP mergers is that between Wunderman and JWT – but is that really what clients need?

    A difficult year for WPP

    2018 has been a difficult year for communications giant WPP. There was, of course, Sir Martin Sorrell’s sudden and tumultuous departure from the helm of the company, leaving waves of bad feeling in his wake, particularly when he started his new organisation, S4 Capital. Then, in October, it was revealed that WPP was no longer the world’s biggest marketing and advertising services group, slipping below American rival Omnicom for the first time in almost a decade. WPP’s share price has experienced a downward trend over the last year and is languishing at levels not seen since 2011: this is largely blamed on the disrupting influence of Sorrell’s departure and WPP’s struggle to transform the huge group in the face of a rapidly changing media landscape and increasing competition from Google and Facebook.

    Simplicity, accountability and scale

    So Mark Read, Sorrell’s successor, has a lot on his plate. He needs to ‘steady the ship’ and execute the transformation that will make WPP future-ready, in the face of the company’s own challenges and the challenges facing the wider industry. A major criticism of the industry is that it is bafflingly complex, with agencies, units, sub-units and specialist arms presenting clients with an alphabet soup of agency suppliers. Forrester said that WPP needs to ‘dissolve’ its hundreds of agency brands into a few dozen to ‘meet the CMO’s need for simplicity, accountability and scale’.

    Mergers to deliver on the simplification agenda

    Read has continued the process of simplification that started under Sorrell, including a series of mergers, including that of Maxus and MEC to become Wavemaker, and Y&R and VML becoming VMLY&R. The latest and most prominent of these mergers is between digital agency Wunderman and renowned creative shop JWT, which, on January 1^st, will become Wunderman Thompson under a single P&L. In WPP’s press release on the matter, Mark Read claimed that Wunderman Thompson will be a new ‘creative, data and technology agency’ which will ‘bring together the capabilities our clients are demanding – award-winning creativity alongside deep expertise in technology, data and commerce – in a single organisation.’ Mel Edwards, the Global CEO of the new entity added, ‘To achieve transformative outcomes, clients today need inspiration that is rooted in data-driven insight. WT offers precisely what clients want – better creativity, expertise in data and sophisticated technology skills.’

    A new set of competitors?

    Interestingly, Wunderman Thompson’s positioning as a provider of end-to-end, data-driven marketing and creative solutions places it in direct competition with not only the traditional media and creative agencies, but with consulting groups such as Accenture and Deloitte who have recently entered the space with an offering that focuses on data, technology and creative.

    The modernisation of a legacy brand

    While the merger marks the end of JWT, one of advertising’s key legacy brands and one of the few agency names that the general public recognised, it does make sense: there had been a feeling that the creative agency was resting on its laurels rather than embracing a more consumer-centric planning approach. With Wunderman’s digital expertise, JWT’s clients will have access to data-driven insights to inform their creative. What’s more, some of those clients also already use Wunderman’s services, so the simplification argument is even more powerful.

    But is it what clients really need?

    This merger is being widely viewed as a demonstration of Read’s determination to change the direction of WPP and create a more streamlined, simplified and easily navigable organisation for the benefit of clients – even if the process is at times painful and difficult. However, at ECI Media Management we would question whether it’s possible to teach an old dog new tricks. Does this internal merger and others like it really make the agencies more customer-centric and produce better outcomes for clients? Or is it just better for the buyers? Furthermore, in this era of data and associated concerns around security breaches, transparency and brand safety, will clients continue to allow agencies to handle their consumer data? Can they be sure that it is they and not their competitors who will profit from the insights generated from the data? ECI believes – and indeed recommends – that clients will increasingly bring their data and ad tech in-house in order to truly understand their customers and drive that all-important consumer-centricity; external consultants can be briefed for support when and where it is needed. WPP and others have nodded towards this new consultancy model, but the need is increasingly urgent and the communications giants need to evolve quickly if they are to succeed in this space.

    Thumbnail image: Shutterstock