Stats, facts and future trends – September 2015

Stats, Facts & Future Trends September 25th, 2015

This month, why marketers are living in “la-la land”, the rise of video effectiveness, and why publishers are missing out by not being on Instagram.

Marketers use ‘shocking’ metrics

The majority of marketers wrongly assume that awareness and engagement are ways of proving effectiveness and many even mistake engagement for conversion, according to a new research. The Fournaise Marketing Group analysed more than 500 marketing strategies during the first half of the year and branded the results “shocking”. The results included:

  • 77% of marketers considered generating awareness a critical way of proving effectiveness.
  • 71% believe that they can prove effectiveness through engagement KPIs such as website traffic, video views, open rates or likes and tweets.
  • Three quarters focus on standing out through creativity, media placement and digital, with form and style taking precedence over content and message.
  • The “most alarming of all” was that 86% of marketers thought their engagement KPIs proved that they generated more business for their organisation, though they could not prove this was actually the case.

Jermo Fontaine, Fournaise’s global CEO and marketing performance chief, was highly critical of the marketing world and demanded to know when marketers would realise their job was “to generate incremental (measurable and P&L-quantifiable) customer demand for their organisation’s products and services.

“If marketers want to be taken seriously and have a bigger, stronger presence in the boardroom,” he said, “they need to stop living in their la-la land and start behaving like real business people.”

Sources: Warc, The Fournaise Marketing Group

To read the full article, click here

Video effectiveness on the rise

Video’s usefulness as a marketing channel has been reinforced by a recent global survey, which found 87% of marketing, sales and business professionals believe its effectiveness is increasing. The survey conducted by Ascend2 also found that:

  • 43% said the marketing effectiveness of video was increasing significantly.
  • Only 1% of respondents reported video marketing effectiveness to be decreasing marginally while none of them thought it was decreasing significantly.
  • More than half (51%) said videos with customer testimonial content were the most effective, closely followed by explainer and tutorial videos (50%) and demonstration videos (49%).
  • Brand awareness (47%) was the top motivation for marketers to invest in video, followed by increased online engagement (45%) and improving customer education (43%).

“This change in effectiveness is considerable compared to other marketing methods and reflects a fast growing rate of video marketing adoption,” said Todd Lebo, CMO and partner at Ascend2.

Sources: Warc, Ascend2, Marketing Dive

To read the full article, click here

How your age affects what you share on social media

Accenture Interactive’s Acquity Group’s 2015 Next Generation of Commerce Study took a deep look into social habits across demographics and found that, while all generations are active on social media, not all generations share content. Where millennials rush to buy a product they see on their feeds, the 69-and-over crowd doesn’t buy into the hype.

• 48% of 23-30 year olds have tried a new product or service as a result of a campaign or ad on social media, compared to 27% of 51-68 year olds.

• 28 % have tried a new product as a result of a YouTube campaign, compared to 11% of 51-68 year olds.

• 50% of 23-30 year olds would share a video on a friend or family member’s wall, compared to 41% of 51-68 year olds.

• When asked which channel they would most trust content created by a brand, respondents said that Blogs and Snapchat are the least trusted, while newspapers and Facebook are the most trusted.

“Our study looks at the way digital technologies such as social media are shaping customer preferences,” said Accenture Interactive managing director Jay Dettling. “Marketing is witnessing a huge shift in what consumers expect from brands during their buying journey. The insights and data points provided in our report will help marketers better understand how consumers want to digitally engage with products and services and help them create updated experiences that resonate.”

Sources: Adweek, Accenture Interactive

To read the full article, click here

Brits spend nearly three hours a day online

British internet users spend an average of two hours and 51 minutes actively going online every day, which equates to around one in every six of all waking minutes, according to new analysis by the Internet Advertising Bureau UK (IAB) and UK Online Measurement Company (UKOM), the official cross-industry standards body. The report also found:

  • Out of the 2 hours 51 minutes Britons spend online each day, one hour 16 minutes is spent on PCs/laptops (45%), followed by one hour nine minutes on smartphones (40%) and 26 minutes on tablets (15%).
  • In terms of what activities engage people when they go online, social media has overtaken entertainment.
  • If a month’s typical internet usage is condensed into an hour, the report calculated that social media accounts for 10 minutes one second of internet time, followed by entertainment (seven minutes 28 seconds), games (three minutes 35 seconds) and instant messaging (two minutes 33 seconds).
  • Time spent on mobile devices to access social media is more than double (21.4%) that of desktops (9.8%).

“When trying to reach consumers, advertisers can’t afford to think of time online as a homogenous entity,” said Scott Fleming, general manager at UKOM. “The most effective digital ad strategies recognise and take into account how behaviour and mind-set differ dramatically by device.”

Sources: Warc, IAB, UKOM

To read the full article, click here

Personalisation drives engagement and conversions

Higher response and engagement rates are the number one reason to use personalised content, according to June 2015 polling from the CMO Council. It was the only benefit cited by more than half of senior marketers worldwide (56%).

• Just under half of respondents said personalised or enriched content made for more timely and relevant interactions.

• More than two in five agreed that personalised content converted more customers.

• Bottom of the list was ‘Stronger appeal to millennials or other audiences’ (28%)

“When we are serving back to the consumer the same products that they are interested in or had researched,” said Nurullo Makhmudov, director, online user experience & strategic initiatives at Sears Canada, “it provides a reminder and a comfort of convenience of access or it’s an invitation to come back and finalise your purchase. In that sense, it becomes a highly personalised and individualised execution.”

Sources: eMarketer, CMO Council

To read the full article, click here

YouTube poised for further success

According to a new eMarketer report, YouTube is poised for further success as marketers continue to regard it as an essential element in their branded content and advertising campaigns. The report, titled ‘YouTube Advertising: Why Google’s Platform Will Stay on Top’ demonstrates that, despite an increasingly competitive environment, the video platform continued to deliver strong financial results and robust usage stats.

• eMarketer estimates that YouTube’s gross ad revenues worldwide will reach $9.50 billion this year, a 25.0% gain.

• YouTube’s global net ad revenues will reach $4.28 billion in 2015, up 40.6%.

• YouTube’s net US ad revenues will reach $2.22 billion, or 51.9% or the global total, in 2015.

• However, two-thirds of US marketers were “somewhat satisfied” with YouTube’s data and analytics tracking, while only 19% said they were “very satisfied.”

“I would be very interested to hear where others are saying that they feel that YouTube ad targeting comes up short,” said Andrew Hanelly, senior vice president of audience engagement at Manifest. “Because I think it’s a huge advancement from what we’re used to, and I think we’re getting spoiled in how we spend our ad and marketing dollars. For video platforms, YouTube does the best job of providing granular targeting opportunities at scale. It’s hard to not sound like a spoiled brat when criticising YouTube, because it’s a marketer’s dream.”

Sources: eMarketer, RBC Capital, Advertising Age

To read the full article, click here

Publishers missing Instagram opportunity

Publishers have more than doubled their engagement rate on Instagram, but only a minority are currently active on this platform, research by Shareablee has revealed. The research found that:

  • Social activity within the media publishing industry had grown 68% in the first half of 2015, with the greatest growth coming at Instagram, which registered a 133% increase.
  • However, only 41% of media publishers currently have an Instagram presence.
  • For the US media publishing industry, ‘social amplification’ – the sum of shares and retweets on Twitter and Facebook – had grown by 105% during the first half of 2015 compared with a year earlier.
  • Social actions on video content were up by 255% over this period, but the increased engagement was especially evident on Instagram, which experienced growth of 622%.

“With 300m active users, Instagram is a ‘must’ for brands to engage,” said Marci Troutman, CEO of mobile solutions business SiteMinis. “Social media is the new billboard for all facets of marketing and advertising, and if ignored will be to the detriment of brands’ longevity in the future.”

Sources: Warc, Shareablee, Mobile Marketer

To read the full article, click here

Mobile to overtake newspapers

In 2016 mobile internet advertising will become the world’s third-largest advertising medium, behind television and desktop internet and ahead of newspapers, according to new forecasts from ZenithOptimedia. The media agency’s latest Advertising Expenditure Forecasts show that next year mobile will account for 12.4% of global adspend while newspapers will take 11.9%. Other forecasts include:

Mobile advertising will grow 38% in 2016 to US$71bn, while newspaper advertising will shrink 4% to US$68bn.

  • Mobile advertising will contribute 83% of all new ad dollars between 2014 and 2017.
  • Print will continue to decline across most of the world, with newspaper adspend shrinking by an average of 4.9% a year through to 2017, and magazine advertising shrinking by 3.2% a year.
  • Total adspend is forecast to grow 4% this year to reach US$554bn before accelerating to 5% in 2016, thanks to the four-yearly boost supplied by the summer Olympics and US presidential election.

“Mobile technology is rapidly transforming the way consumers across the world live their lives, and is disrupting business models across all industries,” said Steve King, ZenithOptimedia’s CEO, Worldwide. “We are now witnessing the fastest transition of ad budgets in history as marketers and agencies scramble to catch up with consumers’ embrace of the mobile way of life.”

Sources: Warc, ZenithOptimedia

To read the full article, click here

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