Stats, facts & future trends – August 2016

Stats, Facts & Future Trends September 8th, 2016

This month, we look at who exactly creates native advertising in magazines, why social is top for video ads, and how to get the most out of your influencer marketing.

Magazines rely on editorial team for native ad production

The lines between native advertising and editorial content are continuing to blur, as more magazine publishers involve their editorial team in the production of native ads than use a separate native ad team. Native advertising firm Native Advertising Institute and FIPP surveyed 140 C-level magazine executives in 39 countries and found that:

  • Only 24% of magazine execs use a dedicated native ad team to help produce native ads.
  • More than two-thirds of magazine executives worldwide said their editorial team produces native ads.
  • More than twice as many respondents said they rely on their editorial team for the production of native ads versus their own native ad studio.
  • Nearly three times as many magazine execs said they involve their editorial team as opposed to a separate native ad team.

However, magazine execs are worried about the lack of division between their editorial and advertising side. Nearly half of respondents said the biggest threat to native advertising was the lack of separation of the editorial and the commercial side. Furthermore, 29% of magazine execs said poor labelling was a concern.

Sources: Native Advertising InstituteFIPP

To read the full article, click here.

Why personalisation is key for content marketing

Most marketers agree that content marketing makes up an important piece of their advertising strategy, but many point to the fact that content creation must be personalised and contextually relevant in order to truly succeed with consumers. In July 2016, Forrrester Consulting asked a group of senior marketing executives from the US and Europe about their approach to personalised marketing, and found that:

  • 69% said they use data extracted from loyalty and customer value programmes to create relevant personalised offers.
  • 67% use behaviour-based data to develop content based insights and emotions
  • When the same executives were asked about the challenges they face with content creation, 60% said it was difficult to keep up with demand for more content across more channels.
  • Another 50% mentioned they found it tough to leverage behavioural and attitudinal data to create emotionally-engaging content.

Other research confirms the inherent challenges of content personalization for marketers. A February 2016 survey from Demand Metric looked at the reasons marketers do not personalise content, and found that many don’t have the technology (59%), while others don’t have the necessary resources (59%).

Sources: Forrrester Consulting, Demand Metric
To read the full article, click here.

Shaded native ads boost mobile CTR

Most native ads incorporate two or three disclosure elements, and click-through rates can be much higher depending on which ones are chosen and what device is being used, research has shown. Ad tech company Polar analysed 137 native ad placements in 67 unique styles across 65 different websites belonging to client publishers across North America and Europe, and found that:

  • 85% of all native ad units contained only one disclosure term, with “sponsored” and its variants being the most commonly used.
  • These featured in 55.2% of disclosure terms, three times as many as the next most popular term, “promoted” (17.9%).
  • 7.5% had no term attached, with the publisher relying on the use of the name or logo of the advertiser to indicate the origin of the content.
  • Performance of different terms varied substantially, by as much as 60% between the highest performing term (“promoted”) and lowest performing term (“presented”).

Image result for native ads

Most native ad units had at least two design elements, such as shading and the presence of a border or icon to distinguish the content from editorial. Average click-through rates for shaded native ads on desktop were 10% less than for unshaded ones, but that picture changed dramatically when applied to mobile, where shading produced a significantly better response.

“It may seem publisher’s trepidation for this design practice is unfounded; on mobile, the CTR of native ads with shading heavily outperformed those without shading by 81%,” Polar noted.

Source: Polar
To read the full article, click here.

Relevancy beats personalisation

Consumers are more interested in relevancy than personalisation, according to a new study by the Direct Marketing Association exploring the changing nature of consumer engagement with brands. The DMA undertook qualitative and quantitative research to explore the language people use when describing experiences with brands, and found that:

  • 40% of respondents were “actively loyal” to brandsfor both routine and special purchases.
  • 27% were “actively disloyal” and tended to have no brand loyalty.
  • Almost a quarter (23%) of consumers fell into the “habitually loyal” category – loyal when buying routine items but shopping around for special purchases.
  • The remaining 9% were “situational loyals” who were flexible about routine purchases but loyal for special purchases, although this figure rose to 15% among 16-24 year olds.

The DMA noted that disloyalty increased with the value of the items purchased. So, for example, 46% of consumers said they shopped around for big ticket items like furniture and 41% for electronic products, but these proportions dropped significantly when asked about shopping around for more day-to-day items like beauty products (21%) and clothes (24%).

And as the relationship between brands and consumers changes, the DMA argued that relevancy beats personalisation. For example, 40% of consumers wanted services that could not only remind them about an upcoming birthday, but give relevant suggestions on what to buy.

Source: DMA
To read the full article, click here.

Execs create thought leadership content to stand out

Thought leadership content is a common staple within executives’ content marketing programs. But what are the key reasons for creating this type of work? According to research by The Economist Group and Hill+Knowlton Strategies, almost half of professionals worldwide produce thought leadership content to stand out from competitors, as well as to earn notoriety for their company or themselves. The research found that:

  • The largest share (47%) of respondents said a top intention for creating thought leadership content was to set their business apart from competitors.
  • Another 42% of executives said it was to win a positive perception for their company or themselves.
  • Just 1% said a key reason for producing this type of content was to entertain an audience.

One way that brand executives may be able to create successful thought leadership content may be through personalization and by listening more closely to their customers. In a 2016 survey from Forrester Consulting, along with Persado, 67% of senior marketers in the US and Western Europe said they take advantage of behaviour-based intelligence, particularly insights and emotions, to produce the right content.

Sources: The Economist Group, Hill+Knowlton Strategies, Forrester Consulting, Persado
To read the full article, click here.

Social is top for video ads

Image result for social video ads

New research has shown that two thirds of US marketers regard social media platforms as the most important partners in any digital video campaign. Trusted Media Brands asked more than 300 agency and client-side marketers how and where they plan to spend their video advertising dollars in coming months and found that:

  • Client-side marketers prefer social platforms such as Facebook or Snapchat (65%) to video platforms such as YouTube or Vevo (55%).
  • Agencies on the other hand lean towards video platforms (62%) rather than social (51%).
  • For both sets of marketers, other options such as video demand side platforms (34% of all respondents), full-episode players (28%), ad networks (28%) and publishers were much further down the list.
  • 40% of respondents believed that Facebook should set the standard for the future of the video industry.

“The big news is that Facebook, which has most of its traffic on mobile, has pulled a real coup,” said Rich Sutton, chief revenue officer at Trusted Media Brands. “In a very short period of time, it has video buyers saying that Facebook is the most important video platform, not just social platform.”

Source: Trusted Media Brands
To read the full article, click here.

The most effective means of influencer marketing

Influencer marketing is rapidly gaining popularity among brand marketers, and according to research by TapInfluence and Altimeter Group, nearly three-quarters of US marketers cite ongoing ambassadorships as one of the most effective uses of influencers. Other results from the 2016 research include:

  • After ongoing ambassadorships, the second most effective influence marketing tactic is Product reviews, with 67% of US marketers citing this method.
  • Brand mentions (54%), event coverage (53%) and sponsored content (50%) were also popular.
  • Although affiliate links were mentioned, few respondents cited them as being the most effective.

The research also asked influencers what their audience loves about their work and what ultimately keeps them engaged. The majority said authenticity was key, with 71% saying they keep their followers engaged by being themselves and being honest.

Authenticity wasn’t the only factor, however. Roughly two-thirds said they keep their audience engaged by addressing the things they are interested in. And more than half said they do so by interacting, listening and responding to their followers.

Sources: TapInfluence, Altimeter Group
To read the full article, click here.

Commissioned by The CMA

 

 

 

 

 

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