Digital Media is it....effective?..economic?..efficient?
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- Mildred Austin
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1 Digital Media is it....effective?..economic?..efficient? 1
2 Is it Efficient? Can it deliver large audiences? Does it make the investment work hard? 2
3 Huge number of intermediaries makes programmatic expensive or inefficient 3
4 Resulting in a significant loss of working media spend Client AOR ATD DSP Tech/Data fees Exchange Publisher 100% 5% 15% 10% 25% 5% 40% Agencies are fighting a war on two fronts. Digital is the battleground and programmatic is the fault line. Management consultants have the strategic and technologic expertise - no doubt. Agencies need to re-invent their business models - the woods are burning. *WFA member survey: Oct 2014 YvonneO brien, Data & Insight consultant, formerly Head of global Havas 4
5 Dumping of inventory in low quality environments is common place and often goes un-noticed As the campaign progresses, the amount of inventory served at night increases Source: MediaSense DiPA Evaluation Daypart Targeting Analysis 5
6 For all it s charms, social media also struggles to reach significant numbers of people For brands with over 1m fans, just 0.06% of them interact with the average Facebook post (like, share, or comment) To say I want to make a viral movie, is like a musician saying I want to make a hit song. - Casey Neistat, YouTube star with 2.7m subscribers 6
7 7 Customer penetration? CUSTOMERS 10,000,000 66,000 CUSTOMER PENETRATION 0.6% 11,000, , % 19,500, ,000 1% 7
8 TV is still king: 3 times as efficient as other media channels Ebiquity Benchmarks: Average ROI Index 1,00 3x 0,38 0,32 0,29 0,24 TV RADIO PRESS OOH DIGITAL Source: Ebiquity database
9 Why is digital ROI low? High cost of digital video relative to TV and wide range of creative quality Ebiquity Benchmarks: Average ROI Index Range within DIGITAL ROI Index Max ,00 0,38 0,32 0,29 0,24 TV RADIO PRESS OOH DIGITAL Avg 0.24 Min
10 Is it Effective? Can it engage audiences? Can it drive a direct response? Can it build brands? Can it deliver creative? Can it target audiences? 10
11 Trust is an important environment for communications 100% 50% 59% 34% Percentage of EU Population: % 46% 46% 48% 48% 36% 21% 59% 0% 80% 60% 40% 20% 0% 62% 66% 68% Radio Television The Press Internet Social Networks Tend to Trust Tend not to Trust 42% 38% 30% Personal experience Friends, family Social media Traditional opinion leaders 22% 17% 12% 13% 13% 16% 19% 16% 19% 7% 6% 10% 14% 12% 11% 14% 3% 3% 7% 8% Opinin leaders online Experts in traditional media Experts online Communication from traditional media 12% Communication from online Millenials Generation X Baby boomers Source: European Commission, Eurobarometer 11
12 but the trend locally is encouraging 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Tend to Trust: Internet UK Germany Turkey Source: European Commission, Eurobarometer 12
13 Users who choose to complete view a skippable are more engaged than those who view pre-roll Users who complete view a skippable ad are +75% engaged vs. seeing the pre-roll Sources:
14 Evidence that the sit-forward nature of digital gives it an edge over TV The majority (62%) of all YouTube mobile advertising, paid and nonpaid, receives viewers attention compared to only 45% of TV Paid YouTube mobile advertising is 84% more likely to receive attention than TV advertising (83% for Paid YouTube mobile ads and 45% for TV ads) * Paid Mobile Advertising Time includes YouTube video ads that are played for at least :30, or in full if the ad is less than :30 14
15 The trend toward personalisation IT S NOT AS EASY AS WE THINK There are things that drive personalisation The fact that we can: registration data, cookies, fingerprinting, mobile device=person The promise of zero wastage The benefits of increased resonance and there are things that prevent it Increasing privacy regulation Devices people Browser blocking Rejection of 3 rd party cookies/pixels/tags Algorithms & models are not a replacement for deterministic data Growing academic evidence on the limits of precision marketing Reputation management concerns 15
16 Precision Targeting: Could we? Should we? 16
17 Is it Economic? Are the investments reflective of it s performance? Are CPMs in line with other media? Is Earned Media really free? Are the absolute costs low? Does it still work with low investment levels? 17
18 18
19 The low CPM for Online advertising is so appealing CPM COST PER MILLE (THOUSAND) VIEWS 43 22, ,3 28 7,
20 But there are warning signs. digital Media price inflation is far in excess of inflation.targeting and Video are fuelling the rises 2 Questions: for how long will it be acceptable to burn through inventory to identify the best creative? Are these prices being fuelled by performance or by scarcity? Source: Adobe Digital Advertising report 2017, Ebiquity 20
21 So what might we conclude? Effective? Be aware of the limits of Precision Marketing: the question is surely should we, rather than could we? Economic? Efficient? Inventory price inflation is becoming a threat, driven through scarcity But digital does seem to deliver complimentary audiences and can efficiently deliver on some younger audiences. A small number of registration-based platforms can deliver TV levels of cover 21
22 Some thoughts on why digital performance is lagging potential SMALL AUDIENCES LOSS OF WORKING CAPITAL POOR TARGETING POOR QUALITY CREATIVE FOCUS ON THE WRONG METRICS HIGH ADVERTISING YIELDS IMPRESSION FRAUD SHORT TERM EFFECTS DON T BUILD LONG TERM EFFECTS 22
23 What can Brands do? 1 Ensure you only have aboveaverage creative Implement campaign controls to ensure even delivery 7 The Creative Imperative 5 2 Consider pre-testing video formats 3 4 Ensure the big idea is appropriately communicated in the medium Clearly distinguish between diagnostics and outcomes Integrate Attention to compliment audience delivery 6 Make sure your creative succeeds in it s purpose to convey a brand message Make Viewability-based trading deals work harder Optimise to context Optimise to device Ensure a fully integrated media plan Balance the long and short term objectives by selecting the appropriate metrics for evaluation Apply the same rigour to digital data as you would with disciplined media The Media Imperative 13 23
24 THE CREATIVE IMPERATIVE 1. Ensure you only have above-average creative MEDIA With strong creative, your ROI will be 5 to 7 times higher than weak-to-average creative Source: Ipsos 75% Creative Quality 24
25 THE CREATIVE IMPERATIVE 2. Consider pre-testing video formats Digital allows clients to run different creatives and optimise inflight. This is based on Digital providing large quantities of cheap inventory For how long will this be possible with increasing inventory pricing? A B C Skip Ad Outstream How long my ad must be viewed to deliver its message. Which of my executions have the greatest brand impact. Skippable Non-skippable Which ad format best fits my execution. Source: Ipsos 25
26 THE CREATIVE IMPERATIVE 3. Ensure the big idea is appropriately communicated in the medium 26
27 THE CREATIVE IMPERATIVE 4. Clearly distinguish between diagnostics and outcomes 27
28 THE CREATIVE IMPERATIVE 5. Make sure your creative succeeds in it s fundamental purpose to convey a brand message 28
29 Not surprisingly, a lot of people watched the video liked what they saw and felt inspired to share it with friends and family.unfortunately no-one recalled the brand or understood the product message 29
30 THE CREATIVE IMPERATIVE 30
31 THE CREATIVE IMPERATIVE 6. Testing, learning and adapting: Coffee-Mate Natural Bliss % earned 53% earned 4.1 million video views, media impression +3% brand awareness 5.9 million video views, media impression +23% brand awareness 31
32 THE MEDIA IMPERATIVE 7. Implementing campaign controls to ensure even delivery and weighting of activity is critical Source: MediaSense DiPA Evaluation Daypart Targeting Analysis 32
33 THE MEDIA IMPERATIVE 8. Make those trading deals work better for you Example: Client plans 40m impressions video campaign at cost of $8 cpm* Viewability Test Connect:Digital shows the ad needs to be viewed for at least 5 seconds to deliver a brand impact Client switches from to 20m impressions viewed for 5 secs at $10cpm Client saves $120k and delivers campaign with more brand impact *Note: cpm is cost per 1000 viewable impressions based on MRC/IAB standard of considering an ad viewable after 2 secs 33
34 THE MEDIA IMPERATIVE 9. Optimise to context Digital video ads are placed in a different context. Ads that work well on TV may fail as skippable video, and vice versa. The brand must appear early and avoid slow builds because viewers won t wait. 34
35 THE MEDIA IMPERATIVE 10. Optimise to device Desktop ads achieve better results when optimised to mobile shorter, key scenes, simpler visuals 50% of YouTube video consumption is on mobile 18% greater brand awareness uplift for (shorter) mobile specific ads on YouTube vs. desktop creative shown on mobile Source: Experiments in Video - Changing Habits and Behaviours - Google 35
36 THE MEDIA IMPERATIVE 11. Ensure a fully integrated media plan The Where Why Remember the complimentary nature of TV Remember and online the audience role of delivery consistent & TV s ability creative to build cues in cover how with people digital make frequency decisions upweights The What Ensure the creative is suited to the medium & the format 36
37 THE MEDIA IMPERATIVE 11. Ensure a fully integrated media plan The Why Remember the role of consistent creative cues in how people make decisions The What Ensure the creative is suited to the medium & the format The Where Remember the complimentary nature of TV and online audience delivery & TV s ability to build cover with digital frequency upweights 37
38 THE MEDIA IMPERATIVE 12. Integrate Attention as a critical dimension to compliment audience delivery Average Attention to the Program/App 7,9 7,8 5,8 6 3,9 3,5 Low Enjoyment (1-3) Moderate Enjoyment (4-7) High Enjoyment (8-10) Low Enjoyment (1-3) Moderate Enjoyment (4-7) High Enjoyment (8-10) 38
39 THE MEDIA IMPERATIVE 13. Balance the long and short term objectives by selecting the appropriate metrics for evaluation Communications objectives: Brand awareness Brand relationship Brand purchase Brand advocacy Behavioural: Web analytics Impressions, visitors, reach Completed views, ratings, likes, up/downloads Incremental sales (on and offline), enquiries Retweets, shares Attitudinal: Surveys Brand & campaign awareness, ad recognition & brand link Brand desire, closeness, performance, image Brand consideration, purchase intent Recommendation, NPS 39
40 THE MEDIA IMPERATIVE 14. Apply the same rigour to digital data as you would with disciplined media Don t conflate browsers, cookies, DiDs, AiDs, fingerprinting, with people Are we happy that those that serve the ads are also telling us how well they performed? Are we happy with the relationship between online measurement companies and publishers? When is census really census? Big data gives us speed and granularity and is usually free..but is it representative? Remember the old adage: You can have your data cheap, fast, good pick two 40
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