Stats, Facts & Future Trends: November 2017

Stats, Facts & Future Trends December 5th, 2017

This month, we discover how much the content marketing industry is set to be worth in 2021, how CMOs are reacting to brand safety concerns, and why longer headlines are better for branded content.

Content marketing industry to be worth $412bn by 2021

The value of the global content marketing industry is projected to rise to $412bn by 2021, according to the latest market research forecast compiled by Technavio. Spanning the period from 2017-21 the report singled out three key growth-drivers for the industry; building brand awareness, lower costs than traditional advertising and an increased conversion rate.

  • The global content marketing industry is projected to enjoy a compound annual growth rate of 16%.
  • In 2016, the global content marketing industry had a valuation of $195.58bn.
  • This will rise to $412.88bn by 2021, representing incremental growth of $217.3bn.

“The effectiveness of traditional marketing is decreasing by the day,” said Ujjwal Doshi, lead analyst at Technavio for media and entertainment services. “Companies must adopt the latest marketing trends to enhance their business and increase their consumer base. Content marketing is a strategic marketing approach that is focused on creating and sharing valuable, consistent, and relevant content to attract and retain the audience. Content marketing is the most economical and effective means of building brand awareness among consumers. If an audience can rely on a company for information, then they will most likely buy products from the same company.”

Source: Technavio

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Creative industries make record contribution to UK economy

The Department for Digital, Media, Culture and Sport (DCMS) have announced that the UK’s booming creative industries made a record contribution to the economy in 2016. The thriving economic sector, which includes industries such as advertising and marketing, arts and film, TV and radio, and museums and galleries, is now worth almost £92bn. The announcement also includes facts such as:

  • The creative industries’ contribution to the UK is up from £85bn in 2015 and it is growing at twice the rate of the economy.
  • Much of the increase has been driven by a boom in the computer services sub-sector. While this includes video games, it also covers wider digital industries.
  • DCMS sectors’ contribution to the UK economy continues to rise, with Gross Value Added GVA at £248.5bn in 2016, up 3.6 per cent year-on-year .
  • This accounts for 14.2% of the UK’s Gross Value Added (GVA).

Secretary of State for Digital, Culture, Media and Sport Karen Bradley said:

“Britain’s creative industries play an essential role shaping how we are seen around the world but as these new statistics show they are also a vital part of the economy. The sector is now one of our fastest growing industries and continues to outperform the wider UK economy. This is a testament to the talent and drive of its workforce and we are working closely with them to make sure this fantastic success continues.

Source: Department for Digital, Media, Culture and Sport

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Content downloads drive B2B conversions

B2B marketers know that, unlike B2C, the path to purchase for B2B products can be long, often requiring the input of many players before a purchase is made. New research from Ascend2 has shown how B2B marketers can make that process a little easier. The firm surveyed B2B marketers worldwide on issues such as which online forms drive the most conversions, and discovered that the answer is the offer of a content download. Specific results include:

  • Two-thirds (66%) of those polled said content downloads generated leads with the best conversion rates.
  • This is greater than webinar registration (45%), demo requests (37%), surveys/polls (26%) and even free trials.
  • Half of respondents said research reports also generated leads with the highest conversion rates.
  • That’s more than any other type of content, including video/motion graphics, webinars/webcasts, case studies/white papers and social media.

Overall, a large majority of B2B marketers (79%) indicated that their lead-to-conversion rates were improving, perhaps a sign that the creeping influence of digital technology is aiding their efforts. In addition, 86% had a positive view of their own lead generation strategy, with 46% considering their success rate as “best in class”.

Source: Ascend2

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UK CMOs react to brand safety concerns

Ever since Marc Pritchard, Procter & Gamble’s Chief Brand Officer, delivered a devastating speech in January about the state of digital advertising, brand safety has been the dominant issue for marketers in 2017. And further evidence of ongoing concern in the industry comes from Teads, the video advertising marketplace, which commissioned Censuswide to question 100 CMOs and marketing VPs at UK companies with a turnover of at least £20m. The survey found that:

  • 95% of CMOs at leading brands in the UK say they have overhauled their digital strategies this year following widespread publicity about brand safety, fraud and transparency
  • 83% of respondents say they have become more concerned about brand safety over the last 12 months, with around three-quarters (77%) more worried about ad fraud.
  • In response to these concerns, 44% are reviewing their relationships with suppliers and another 43% are examining their agency relationships.
  • More than a third (36%) have boycotted or reduced spend on channels that cannot guarantee brand safety, while 37% of CMOs say they are now directly involved in the execution of digital strategy.
  • 43% want publishers to assure them that risky content on their sites are under control, more than a third (36%) want agencies to address their questions about transparency, while 34% are concerned about how users could react to ads appearing next to unsafe content.

“In order to get to the root of these issues, we need to rally together as an industry to make sure transparency, brand safety and fraud-free environments are guaranteed at every level,” said Justin Taylor, UK MD at Teads. “For brands and agencies, this means having transparency and verification on ad buys; if it’s not viewed, the advertiser shouldn’t pay. For consumers this means seeing non-intrusive, quality creative. For publishers, it’s having access to high-yield video inventory and global brand advertisers, with the right tools to prevent fraud.”

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Longer headlines better for branded content

When it comes to headlines for branded content, more characters and more words mean more clicks, according to a recent study by Polar. The branded content technology provider analysed a set of data provided by premium publishers to see how a variation in headlines affected key performance indicators (KPIs), and found that:

  • Branded content headlines between 90 and 99 characters achieved a click-through rate (CTR) of 0.43%, higher than headlines with fewer characters.
  • Headlines with 16 words garnered a CTR of 0.33%. In comparison, headlines of just four words recorded an average CTR of less than half that, at just 0.14%.
  • Numbers and special characters also resulted in a bump in CTRs.

Content marketers in North America are increasingly relying on a variety of technologies beyond the old standby of email, according to recent research from the Content Marketing Institute (CMI). In a poll conducted in February, the organisation found that 57% of respondents used a content management system (CMS), while nearly one in five (18%) had turned to some type of content optimisation software.

Sources: Polar, CMI

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How often do consumers actually click mobile ads?

A new survey found that most consumers say they rarely or never mean to click on ads served up on their phones. Button, a mobile partnership platform, and App Annie, a mobile app data and insights provider, surveyed 1,106 US smartphone users ages 18 to 73, and found that consumers aren’t too keen on mobile ads. Specific results included:

  • More than four in 10 millennials said they rarely click on a mobile ad, and another 17% said they never did.
  • While there were some millennials (31%) who said they sometimes click on a mobile ad, very few (10%) did so intentionally.
  • However, ads promoting mobile apps tell a different story. 52% of all respondents said they intentionally clicked on a mobile ad for another app.
  • Then, 44% of those who clicked on such an ad actually downloaded the app.

Separate data from the Interactive Advertising Bureau (IAB) conducted earlier this year also took a look at the differences in consumer responses to advertising on the mobile web versus in-app ads. Nearly half (47%) of smartphone users polled worldwide said they took some sort of action after seeing an ad in a mobile app, while slightly fewer (45%) did so after seeing a mobile web ad. When it came to actually clicking on the ad, only one in 10 had done so.

Sources: Button, App Annie, IAB

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Are you addicted to your phone?

A study from Deloitte, conducted by Ipsos MORI, found that many people just can’t seem to put down their smartphones. The survey polled 2,000 US internet users ages 18 to 75, and found that:

  • People check their device approximately 47 times per day.
  • People under 18 check it roughly 86 times a day.
  • Nearly nine in 10 respondents said they check their phone within an hour of waking up in the morning, while almost as many do so right before they go to sleep.
  • More than nine in 10 respondents reported having their smartphone on hand when shopping, and nearly as many said they use it while watching TV.

Image result for mobile ads

However, many people are aware of their smartphone habits and said they are trying to limit their usage. According to the study, 47% said they’re taking actions to reduce the time they spend with their device, either by keeping it out of sight or by simply turning it off. But not everyone is ready to limit their smartphone usage – some 28% said they don’t intend on taking any steps in doing so.

Sources: Deloitte, Ipsos Mori

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Email marketers need to tap the power of copywriting

Email remains the trusted workhorse of digital marketing, but new research shows that the majority of consumers don’t think such communications are done well. The DMA’s Consumer Email Tracker 2017 report was based on 1,063 responses from a YouSay consumer panel, and found that:

  • 60% of respondents don’t think any brands do email well.
  • 44% of people have set up dedicated email accounts to receive marketing messages.
  • When people check marketing emails, almost half (49%) said they need to recognise the brand before opening any communication.
  • Order confirmations (83%), delivery updates (82%) and receipts (78%) are what consumers felt email does best.

Brands need to focus on crafting each email carefully, without resorting to gimmicks, according to Rachel Aldighieri, MD at the DMA. “We know, for instance, that consumers are engaging well with simple emails composed of well-written text and images,” she said. “The power of the craft of copywriting should not be underestimated.”

Source: DMA

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