Tag Archive: media agency

  1. Are ads an inevitability for Netflix?

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    Netflix – a success story

    It’s fair to say that Netflix is one of the huge tech success stories of the 21stcentury. Having started as a DVD sales and rental business, it expanded its business in 2010 with the introduction of streaming media, whilst initially retaining the DVD side of the business. It now has more than 148 million subscribers in over 190 countries. Its earnings to date have reflected its meteoric rise: in Q1 of 2019, for example, the company reported $4.52bn revenue, compared to the $4.5bn anticipated by Wall Street.

    Competitors on the horizon

    So far, so good. However, Netflix has undoubtedly benefited from first-mover advantage, and that may be coming to an end. Many media companies such as Disney, Apple, Amazon, Sky and traditional broadcasters are launching their own streaming services with established and new content; Disney has already removed all its original movies from Netflix, as well as those it owns the rights to, including Marvel and Star Wars. In the aforementioned Q1 report, Netflix stated that it didn’t expect this new competition to negatively affect its subscriber growth; however, that seems inevitable, and Netflix has already taken steps to mitigate the risk.

    Taking the battle to competitors with original content

    The obvious solution to increased competition has been for Netflix to make substantial financial investment into the creation of its own original content, which can’t be withdrawn by a competitor. However, that’s a huge investment and, as CNN points out, ‘the continuous influx of revenue still falls several steps short of what the company is spending each quarter [on original content]’. The cost has to be covered somehow – but how?

    Running ads to cover costs

    In an IAB panel back in April, execs from YouTube, JPMorgan and two agencies concluded that running ads were an inevitability for Netflix – echoing Sir Martin Sorrell in 2015 when he said that Netflix would inevitably have to build digital ads into its marketing strategy. Hulu has done this successfully with a two-tier subscription option – a more expensive ad-free choice, and a cheaper ad-supported service. Analysts believe that Hulu makes more money per subscriber from its subscription plus ads combination than it does from its more expensive ad-free option. Given Netflix’s scale – it is the third most-watched TV ‘channel’ in the UK, for example – it is an extremely attractive proposition for advertisers – and that makes it attractive for investors and Wall Street. However, Netflix subscribers are vocal in their opposition to this suggestion, and a 2018 trial was not a success: 57% of a control group said they would cancel their subscription. It’s worth noting though that Hulu added more subscribers than Netflix in Q1 the US (3.8m versus 1.74m), even with ads.

    There are alternatives to ads

    What are the alternatives? Netflix could of course increase its subscription prices; even after bumping them up in the last quarter of 2017, it increased its subscriber count by 50% more than Wall Street predictions. There is probably an upper limit to this option though. Another would be to look at the other side of the balance sheet: cut investment in original content and focus on the shows that are sure to be smash hits, which aren’t necessarily original. In 2018, just two of the top ten most watched Netflix shows were Netflix originals.

    What does the future hold for Netflix?

    Netflix is comfortably winning the streaming game at the moment, but it needs to re-examine its model in light of the rise of competitors. A digital ad platform is one option, but there is a risk that that move would lead to the loss of many of its subscribers – which competitors would welcome with open arms. There are other options – increasing subscription prices and cutting costs elsewhere – and Netflix will have to look at all of them in depth in the coming months.

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  2. Conflict of interest means WPP won’t participate in Accenture-led pitches

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    Conflict of Interest means WPP won’t participate in Accenture-led pitches

    In a move unsurprising to many industry insiders, it emerged this week that WPP would henceforth refuse to participate in any Accenture-led audits or reviews. It cited as its reason that Accenture could use the data to which it has privileged access as an auditor to undercut WPP’s prices in other pitches for ad budgets.

    Accenture’s digital arm gives it an unfair advantage

    The concern is rooted in the fact that, last year, Accenture’s digital arm, Accenture Interactive, launched a programmatic services practice, offering programmatic consulting and in-housing; media strategy, planning and activation; and ad tech implementation and support. This placed them in direct competition with specialist programmatic companies but also the major media agencies, including WPP’s GroupM.

    WPP is arguing that, from Accenture’s privileged position, it will be able to offer advertisers cheaper, more effective media rates during pitches, giving it a massive and unfair advantage. Accenture maintains that there are internal barriers in place between its audit and programmatic buying business units, but WPP is evidently unconvinced – as are we.

    The threat from the ‘vanguard of advertising’

    This decision is not out of the blue: there has been growing disquiet amongst the more traditional media agencies who feel, according to an article in the New York Times, “threatened by the ‘vanguard of advertising today’ – consulting firms like Accenture which offer technical wizardry in an age of cord-cutting and ad-blocking.” The fact that Accenture will now potentially be able to take market share from these agencies in an ‘underhand’ way only serves to entrench the tension – the battle has become war.

    WPP needs to persuade clients to follow its lead

    The issue with WPP’s move is that it will need to persuade clients – both current and future – to not work with Accenture as well. That could be extremely difficult: when clients own their data (as opposed to their agency), it is often inextricably entwined with a number of parties, an arrangement that is difficult to move away from; a Digiday article points out that clients will judge whether it’s worth it based on how satisfied they are with their auditor, and not on any gripes the advertiser has with said auditor.

    ECI Media Management: independent and impartial

    At ECI Media Management we fully back WPP’s decision. Impartiality is at the heart of effective auditing and no company which offers media services to a market where it has highly privileged access to the data and financial information of both advertisers and agencies can claim to be impartial. As Paul Bansfair, the Director General of the IPA (the UK ad industry’s trade body) said when Accenture Interactive announced the launch of its programmatic buying branch, “In an era where transparency is under the spotlight, this self-evident conflict of interest is unacceptable.”

    At ECI Media Management, we are 100% director-owned and have no affiliations with any media agencies or owners, so our advice and actions are always based on what is best for the client. We believe that should be the norm across the auditing and media management sector.

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

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    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.

    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 21st 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.

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

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    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.

    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.

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

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    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.

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  6. With Sizmek fading away – a monopoly is on the rise

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    The demand side ad-server is at the core of most advertisers’ online media tech stacks, delivering real time data on the most important metrics, including impressions by date, hour, viewability, fraud, brand safety, reach and frequency, as well as consumer activity such as clicks and conversions.

    In most regions, an advertiser who wants an independently audited and approved ad server catering to most vendors and formats (while also offering tools for handling dynamic creatives and programmatic media buying) only has three options; Google, Sizmek and Adform. There are some smaller companies around but on a global level in developed markets these companies have a purely nominal market share amongst major advertisers (in our experience).

    If an advertiser also wants its platform to be truly independent of the supply side, then only Sizmek and Adform would be left on the short list, despite Google being the most dominant in the industry.

    Now there are strong indications only one independent will remain on that shortlist, as Sizmek has filed for chapter 11 bankruptcy in the US. What the outcome will be is uncertain; will Sizmek be entirely closed or parts sold off, or re-invigorated?  For the health of the online media industry, we sincerely hope for the latter option.

    But to be practical, this is yet another blow to smaller, independent suppliers in a rapidly maturing and consolidating industry under ever-increasing pressure for efficiency and value creation from the duopoly (or monopoly, depending on your delineations) of the behemoth walled gardens of Google and Facebook. Google has undeniably had the financial muscle to take user friendliness, simplicity, consistency, reliability, packaging, and customer support to heights that Sizmek has never gotten close to. Google’s virtuous circle of intense focus on user value and growing user bases is difficult for contenders to catch up with.

    Sizmek had several different versions of its ad server running simultaneously probably because transitioning clients was a complicated process – subsequently it tried and failed to charge more for the new versions which hasn’t helped its business model.

    But in all of this, are we being unfair to Google? After all, no other ad server has opened up as much to, and received as many accreditations from, the MRC. Vetting by an independent and globally trusted media measurement organization has concluded that Google’s reporting is trustworthy. Still, its market dominance is troubling, not so much what led to that dominance or the abilities it affords it. Too much of the fate of the online media industry is dependent on the will of the giants.

    If Sizmek really falters, where will its clients turn? Those that made a conscious choice for independence and still want to, could turn to Adform (MRC approved) or one of the new generation of growing platforms who are seeking this accreditation. For others we suspect it’ll be the easy but less inspiring way out.

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  7. Day 3 at the ANA Masters of Marketing

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    More inspiring content and ideas to take home from day 3 at the Masters of Marketing.

    Delegates at the 2018 ANA Masters of Marketing were treated to yet another delicious dinner on Thursday night and a breath-taking performance by the ultra-talented Kelly Clarkson. It was an evening to remember and a feast for all the senses, while the sessions on Friday were a return to a more intellectual kind of feast.

    Taking back control

    Friday kicked off with a panel of top marketers from some of the world’s most recognisable brands – Jill Estorino from Walt Disney Parks and Resorts, American Express CMO Elizabeth Rutledge and Deloitte Digital’s Alicia Hatch, facilitated by P&G’s Chief Brand Officer Marc Pritchard. They discussed leading disruption as a way to drive growth and to ensure that marketing still matters into the future. A Cannes Lions CMO Growth Council has formed a movement that is ‘taking back control’ of marketing, with a focus on five core tenets to drive growth: data and technology; talent and capability; customer centricity, brand experience and innovation; and society and sustainability. Each panellist took the audience through an example of how their company is implementing initiatives in these five tenets. Jill Estorino explained how Disney has put the customer – and the future customer – right at the centre of their product innovation and experiences by harnessing data, while Marc Pritchard put forward the argument for increasing brands’ social and environmental responsibility – half of consumers take a more positive view of a company that takes a stand on an issue.Taking smart risks to drive growth

    Staying relevant by focusing on your greatest asset

    If attendees thought that the session following Jeff’s would be lower energy and they’d be able to relax a bit, they were mistaken. The WNBA’s equally charismatic Lisa Borders talked to us about how the WNBA grew to become a major entertainment – not just sports – brands in a little over 20 years. Their focus has always been to remain relevant by focusing on their greatest asset – their players, using their own authentic voice, embracing who they are and leveraging that in their communications and brand identity.

    Earning loyalty to drive growth

    Next up was Greg Revelle, CMO of iconic American retail brand Kohl’s, which is going from strength to strength despite the challenges faced by the retail sector. He explained how overhauling the cherished Kohls Cash rewards scheme allowed them to accelerate the rate of customer acquisition and retention, whilst deepening customer engagement and simplifying their value proposition. The key to the success of the new programme was asking the customers themselves – and not just researchers – what they wanted from the loyalty programme. Greg’s top tips to marketers were to start from your company’s roots and scale up from there; see industry challenges as opportunities; ask your customers what they want and measure everything you can.

    Humanising personalisation

    After Greg, American Express CMO Elizabeth Rutledge returned to the main stage to relay how she has driven a sea change – and global growth – at her organisation with a new brand platform – ‘American Express has your back as you do business and live life’. The entire strategy is rooted in humanity and the ‘humanisation of personalisation’: Elizabeth kicked off her presentation with Muhammad Ali’s moving short poem, ‘Me? We.’ She went onto explain how her ‘aha’ moment was realising that marketing is only a ‘sliver’ of the way that American Express engages with its customers – the real human connection is via the customer services team, so the new brand platform had to revolve around the entire company – who they are, what they do and what they say. There was a renewed focus on their employees, ensuring that they were satisfied because ‘a happy employee is a happy customer’. The new platform and approach has been a huge success for the brand so far, raising brand value by 8%. Elizabeth’s key takeaways for the audience? Data is critical but, on its own, not sufficient; we – marketers – are the stewards of ‘we’; and we must infuse the personal into personalisation.

    Brand versus performance marketing

    With that rallying cry we moved to the second stage to listen to last year’s top-rated speaker, Clorox’s Eric Reynolds, talk openly and honestly about Clorox’s journey towards achieving the right balance between performance marketing and brand marketing.

    He shared lessons that they’ve learned along the way, using a gut health brand and an anti-ageing DTC acquisition as case studies. The critical lesson? Like so many others at the conference, it was to put the consumer as a person at the heart of what you are doing. Marketers from both the brand side and the performance side must consider the consumer’s personal goals and their unique path to purchase, and find the best way that the brand can be useful to them. For CPG brands like Clorox, that means going back to the industry’s roots – being useful to real people, every day.

    An unconventional path to growth

    From gut health to gut instinct: back at the main stage after lunch, the CMO of privately owned bread brand King’s Hawaiian, Erick Dickens gave an enjoyable, informative session about their unconventional path to growth. Always following his gut – his key piece of advice for the audience – he had to do things differently thanks to a limited marketing budget. That included bankrolling the best agency talent to start their own agency as he couldn’t afford to pay for them in their existing roles; working directly with media properties so he could cut out the middle men; thinking big (they even made a film with their limited budget!); and picking high impact placements – namely the Oscars and the Super Bowl – using existing creative. Not only did they spend a fraction of what the other brands spent on their creative, but their spots when straight into the top ranked ads at the Super Bowl! Erick’s bold and unconventional approach has earned him fantastic results across all key metrics, including uplifts in unaided brand awareness and household penetration.

    Marketing’s time to shine

    We finished the day with an inspiring and heart-felt presentation by Deloitte Digital CMO Alicia Hatch, who explained why this is marketing’s moment to shine. With so much disruption and transformation in the marketing industry, now is the time to use our brand’s purpose to create a force for good. Through the prism of Deloitte’s work with National Geographic to create the amazing Women of Impact campaign, Alicia described that the secret lies in brands really understanding where their consumers derive meaning and really understanding what matters to their brand. If they can create brand experiences where those two areas intersect, that’s where a brand has the power to elevate the human experience and become a powerful force for good – which in turn drives business growth. The Women of Impact campaign harnessed cutting-edge predictive AI technology which allowed the team to respond to the community they had created at the speed of culture – allowing National Geographic to move from earning a share of voice to earning a share of culture. In the end, it’s all about data

    We ended day two with a session on how to turn your data into an emotional connection courtesy of Bank of America’s Lou Paskalis. He stressed how in the future, marketing will be data-driven, connections-based and customer-obsessed. People buy with their hearts and then rationalise their purchases with their brains: if your brand can connect with their hearts, you win. Lou also made the pithy observation that data is the new oil: in its raw form it’s just a material, but if you refine it in the right way, it will inform your marketing vision.

    Customer-centricity, brand purpose and using data well

    As always, the Masters of Marketing was a festival of ideas, inspiration, food for thought and energy. The main themes that came out time and again were customer-centricity, brand purpose and how to use data as a means to create meaningful, authentic connections – not as as the end itself. It’s always inspiring to hear how talented and dedicated marketers are harnessing the rapid changes in the industry to make their discipline a driver of growth and a force for good. For those looking to drive growth for their brand, ECI Media Management has years of experience helping marketers do just that, and we’d be delighted to hear how we can support you. Feel free to contact us on

    Thumbnail image: Alexandra Matthews

  8. Day 2 at the ANA Masters of Marketing

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    The conference officially started on Thursday with energising, thought-provoking and fascinating talks.

    The conference officially starts

    As we described in our blog post from the first day, the ANA Masters of Marketing conference started with a bang with some thought-provoking and fascinating pre-conference sessions, followed by dinner and a performance by Train. If delegates were a little bleary-eyed after that, the official start to the conference at 8am this morning ensured that they were fully alert!

    Opening remarks from ANA CEO Bob Leodice

    The CEO of the ANA, Bob Leodice, opened the conference with remarks on the critical importance of growth. More than half of Fortune 500 companies have suffered a decline in growth and it is the responsibility of marketers – many of whom were in the room – to lead a drive to recover that growth. The ANA supports its members in many ways, including with playbooks that they have created for ‘distinct and direct action’. These playbooks cover many hot topics such as data and technology, transparency, measurement and accountability, and talent development. Bob also showcased several particularly touching and effective campaigns from the last 12 months, including the #seeher campaign which is fighting the conscious and unconscious bias against women and girls in advertising.

    Bob concluded his session by reminding his audience that the opportunity to elevate growth is within their grasp – and, if they do that, that there is so much progress to be achieved. Marketing can, and should, be a force for good and for growth.

    Taking smart risks to drive growth

    Bob was replaced on stage by Jeff Charney, the extraordinarily charismatic CMO of insurance-firm-with-a-difference Progressive. He exploded onto the stage to talk to the audience about risk and how we as marketers are not taking enough of it. He claimed that driving growth is fuelled in part by a willingness to take smart, insight-led risk because in this day and age you can’t just stand still and hope that growth will find you. He defined the right way to take risks with a clever acrostic: Relevance not Recklessness, Information not Impulsiveness, Speed not Siloes and striKe out, not Know-it-all. Jeff even took what could have been a huge risk during his talk – persuading nearly 3000 delegates to sing Belinda Carlisle’s ‘Heaven is a Place on Earth’ acapella…

    Jeff also explained his unique network philosophy, where great characters create great content that is placed in the right content – and have control: Progressive has taken a significant portion of their agency activity in-house, with huge success. If that’s something you are considering, we have a list of the top ten things to consider.

    Building a brand the WNBA way

    If attendees thought that the session following Jeff’s would be lower energy and they’d be able to relax a bit, they were mistaken. The WNBA’s equally charismatic Lisa Borders talked to us about how the WNBA grew to become a major entertainment – not just sports – brands in a little over 20 years. Their focus has always been to remain relevant by focusing on their greatest asset – their players, using their own authentic voice, embracing who they are and leveraging that in their communications and brand identity.

    A second stage for more choice and intimacy

    After Lisa’s session, ECI moved over to the second stage. The second stage is a new feature for 2018, in response to delegate feedback that they wanted some choice in the agenda and some more intimacy. The experiment is evidently a huge success, with people standing around the edges of the room to see some big names from Unilever, Bank of America, eMarketer and others give inspiring and insightful talks.

    What marketers can learn from D2C brands

    First up was Luma’s Terry Kawaja: an investment banker isn’t the obvious choice for speaker at a marketing conference, but, being as he is at the intersection of media, marketing and technology, Terry’s insights were of course highly relevant to his audience. He explained what marketers could learn from the new generation of ‘D2C’ (direct to consumer) brands that are proliferating in an age when so many traditional, incumbent brands are facing declining growth. We discovered that the tactics of D2C brands – who are often essentially marketing companies with a product to sell – are so good that they even sell bad products! So what are these tactics? They include focusing on the consumer, recommitting to product design, adopting performance media, deploying content marketing and even making select acquisitions of D2C companies.

    Trust: the basis of eBay’s interaction with consumers

    Returning to the main stage, we were lucky enough to see eBay Americas CMO Suzy Deering talk about her company’s focus on trust: her brand – a ‘human platform’ – is very aware that consumers want to trust and will support brands that are purpose-driven. That basic tenet of trust is the basis of the three principles that are the foundation upon which

    eBay’s approach to consumer engagement is based. The first – built on trust. The second – powered by purpose. And the third – using data to connect to buyers and sellers in meaningful, authentic ways. With these in mind, eBay leans into culture in a way that feels true to consumers’ wishes, using data to understand what consumers want and how they behave – and respond accordingly.

    How to market successfully in the age of assistance

    Over a delicious lunch, Google’s President of the Americas Allan Thygesen spoke to delegates about marketing in the age of assistance – where empowered consumers are more curious, demanding and impatient than ever thanks to the ability to effortlessly navigate life and make decisions. In this intent-driven world, the opportunity for marketers to lead their companies’ growth has never been greater: brands must grab with both hands the opportunities that are arising from the fact that intent is redefining the traditional funnel, the new shapes of today’s dynamic consumer journeys and the new formula for success. Allan explained that successful marketers are making three fundamental shifts to drive growth in this new world: focusing on business outcomes, not media metrics; stopping marketing to the average; and automating everything. Brands need to earn the trust of their consumers – the takeaway phrase from this presentation was that when people can count on brands, brands can count on growth.

    A crash course in the hottest emerging trends

    Suitably refreshed and ready to absorb whatever the afternoon’s speakers could throw at us, ECI headed to the second stage for ‘a crash course on the hottest emerging trends in marketing’, courtesy of eMarketer’s Geoff Ramsey. He managed to fit an extraordinary amount of content into a mere 30 minutes, including media spend, the colliding worlds of TV and digital video, how AI will change everything, the rise of voice search and how AR is moving into the mainstream. We were particularly interested to hear him talk about the rise of Amazon as a media company – not just a retailer: he expected to see them double their media dollar growth over the next few years, making them a serious competitor for the Google-Facebook duopoly, as we discussed in a blog post from a few weeks ago.

    The shift of viewers from pay TV to streaming providers such as Netflix was an important topic – and how that presents a major challenge for advertisers: a key reason that people are moving is to minimise their exposure to ads. We’ve written about this topic in the past – you can read more in our blogs on the battle for the future of entertainment and how video streaming services are forcing the TV industry to transform.

    Geoff also explained how newer technology – AI, voice search and AR – are all major trends that we will be seeing much more of in the coming years. Each will fundamentally change how consumers behave and therefore how brands interact with them. He was particularly surprised by the rise of voice search, driven by the proliferation of voice-activated devices such as Alexa and Google Home. It could have major implications for smaller and challenger brands as there is often only one single answer to a voice search query: in the future, this benefit could be sold to the highest bidder.

    In the end, it’s all about data

    We ended day two with a session on how to turn your data into an emotional connection courtesy of Bank of America’s Lou Paskalis. He stressed how in the future, marketing will be data-driven, connections-based and customer-obsessed. People buy with their hearts and then rationalise their purchases with their brains: if your brand can connect with their hearts, you win. Lou also made the pithy observation that data is the new oil: in its raw form it’s just a material, but if you refine it in the right way, it will inform your marketing vision.

    The consumer: front and centre of all marketing strategies

    In our two days at the Masters of Marketing so far there has been no escaping that, in order to drive growth and ‘win’ at marketing, a marketer’s focus must always, always be on the consumer. Putting the consumer at the heart of your marketing strategy and really understanding what they want from your brand – and then giving it to them – is the surest way to drive growth for your company and, in turn, make marketing a highly valued department in your organisation. We’re sure that this theme will continue on day three of the conference – we will of course be covering the sessions in real time on LinkedIn using the hashtag #ECIatANAMasters, and we will release a blog post summarising the day tomorrow evening. As always, if there is anything you’d like to discuss with us in more detail, you can contact us at .

    Thumbnail image: Alexandra Matthews

  9. The ANA Masters of Marketing conference: Day 1 download

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    The 2018 ANA Masters of Marketing conference has kicked off with aplomb.

    The pinnacle of the US marketer’s year

    The ANA Masters of Marketing conference is a key fixture in the calendars of many US marketers. In a world where technology is changing the landscape at an unprecedented rate, the opportunity to meet your peers, discuss the major issues the industry is facing and come away with some answers – or at least food for thought – is one that’s not to be missed. With that in mind, many marketers from across the US have descended upon Orlando in the last few days. Those from more northern cities surely appreciate the balmy Florida weather, but none of the attendees will be letting sunshine and blue skies distract them from the matter at hand!

    This year’s theme is growth – against a challenging backdrop

    As was to be expected, the Masters of Marketing started with a bang with some thought-provoking pre-conference sessions on Wednesday. The official theme, as has been the case for 10 years, is ‘growth’ – an increasingly elusive concept for many organisations. The sessions today were a showcase for how marketers can drive growth for their organisations by harnessing the transformation the industry is undergoing and using it to future-proof their marketing strategies.

    The awareness versus performance debate

    ECI started with a session that examined the ongoing debate between driving awareness and performance in the era of artificial intelligence – something that we are particularly interested in. We are all aware of the huge disruption that AI is causing in the advertising industry (and indeed in all industries). It is the equivalent of the internet back in the late nineties – we are possibly over-estimating its significance in the short term, but woefully under-estimating its long-term impact. A graph showed in no uncertain terms that we’re rapidly approaching an inflection point where machines will become more intelligent than humans. This will only be exacerbated by the arrival of 5G, which will unleash an unfathomable amount of data and, with that data, the Internet of Things will come into its own.

    Against that backdrop, the audience was given a crash course in harnessing that wealth of data and the increasing importance of mobile to drive sales and customer loyalty. Rachel Tipograph, the founder of MikMak which has reinvented infomercials for a generation of digital natives, taught the audience how to harness first-party data in the most effective way to create campaigns that drive sales and brand loyalty. Working on the basis that ‘if it isn’t Instagrammed, it didn’t happen’, we were taken through a step-by-step process, from setting a campaign objective (bottom-of-the funnel, such as link clicks

    or landing-page views) to identifying laser-focused audiences, developing ‘thumb-stopping’ creative and optimising your landing page – which is now more likely to be your product page than your home page. Rachel emphasised the importance of the pixel to capture real-time data for optimisation and build qualified audiences for prospecting or targeting – something we will be examining in our post-conference series of articles next week.

    Where next for advertising?

    The session that followed was an AEF (ANA Educational Foundation) symposium entitled ‘The end of advertising as we know it: what next?’ The premise for this session was the fact that advertising is increasingly seen as an interruption in what the consumer wants to be doing, and – in an age of ad-blockers and paid-for, ad-free streaming services such as Netflix – marketers need to find new ways to meaningfully connect with and engage with their audiences so that adverts are welcome and not seen as an intrusion. Mark Truss of JWT presented the keys to humanising a brand: transparency, brand contribution, business conduct, brand purpose, value beyond the customer and employee appeal; he also laid out how brands should behave in order to maintain a real and lasting relationship with consumers. Crucial behaviours included humanising customer support, being true to your brand purpose and identity, and using social media to be social – not just as a platform to drive sales.

    The scene is set for an invigorating few days

    The pre-conference sessions at the Masters of Marketing were more than a taste of what is to come – they set the scene for what will undoubtedly be an energising, challenging and thought-provoking conference. We anticipate a lot of discussion around data privacy and the challenges that entails for marketers (particularly in light of federal investigations into media-buying practices and the introduction of GDPR), what the future holds for marketing and how best to invest those precious ad dollars.

    Get the latest insights with ECI

    We will share a download of each day of the conference on our blog, ECI Thinks, as well as real-time insights from each session via LinkedIn – you can follow these using our hashtag #ECIatANAMasters. Next week, we’ll release a series of articles summarising our learnings from the conference and their implications for marketers. And of course, if there is anything mentioned in these articles that you would like to discuss with us in more detail, you can contact us at .

    Thumbnail image: Alexandra Matthews