Thursday, October 20, 2016

Mothers Mindfully Manage Their Role as Household CFO

Take a minute to think about who holds the spending power in your household, your friends’ households, or the household you lived in while growing up. While no family operates in the exact same way, it wouldn’t surprise me if most of the money spenders were the mothers.

Consider this, who is the person that buys groceries, goes back to school shopping with the kids, and purchases the household necessities like shampoo and laundry detergent? Chances are it’s the mother who is often referred to as the “chief financial officer” for their household by marketers.

It’s important for marketers to define their target audience but more importantly they need to know their behaviors. eMarketer released a study claiming that mothers tend to be bargain hunters. There are more single mothers in today’s society than in the past which means more women are living in a one paycheck household. For these women especially, good deals are important.

This chart shows that mothers are more likely to shop around, wait for sales, and cut coupons than women without children.

In order to reach mothers, marketers must know their priorities, and for most moms out there, price is at the top of the list. 

Monday, October 17, 2016

Software Updates Shine New Light for Mobile Video

Recently, iPhone and Android users have been able to update their smartphones to the newest software iOS10 and Chrome 53. Typically, these updates simply improve user experience and keep customers interested. However, this recent update might be a huge step for advertisers as well.

iOS10 and Chrome 53 lift strict guidelines that restricted auto play and inline video on their devices. Now, video can play automatically on a mobile web browser without any interaction by the user. The only catch is that video cannot have sound that plays unless the user interacts.

Video can also be “inline” or weaved throughout content. Formerly, video had to be played with the software’s native video player whereas now, video can stream seamlessly wherever it is placed.

Facebook and Snapchat have already benefitted from these changes as they continue to explore options with full screen vertical video and automatically played content.

Previously, advertisers aimed to get around the restrictions by creating GIFs with heavy movement to resemble a video ad. With a substantial amount of animation, the GIF files were huge and ultimately, slow to load. Now, heavy GIFs can be replaced with light video and run automatically and quickly without slow load times.

Thanks to iOS10 and Chrome 53, vendors will surely begin to fiddle with new ad sizes, elements, and varieties to excite their advertisers. 

Friday, October 7, 2016

Social: Saying 'See Ya' to Social

What if I told you there would be no more social media? Chances are you wouldn’t believe me, but recent news implies that saying see ya to social is exactly the direction we’re headed in… kind of.

Companies like Snap Inc., Twitter, and Facebook have ditched the term “social media” for more sophisticated terminology.

Snap Inc. after recently changing from Snapchat, now classifies itself as a camera company. Twitter has removed their app from the “social” section in Apple’s App Store to the “news” section. Facebook COO, Sheryl Sandberg, says, “There are so many jokes to crack about that…” in response to the idea that Facebook is a social media platform. Sandberg says, “It’s certainly not even a term I think we’ve used in a while.”

So why are companies treating the term “social” like it’s the black plague by running in the opposite direction? Well, by ditching the “social” label, companies are able to offer brands a bigger “media” concept resulting in more ad dollars. 

It might seem crazy at first, but these companies evolving from social media into more sophisticated niches might not be such a bad thing. Nick Cicero, CEO of Snapchat-focused agency Delmondo, says, “When you compare Twitter as a news app to any one individual news organization’s app, Twitter wins, hands down”.

The term “social media” has always had a ring to it that’s attractive to the younger demographics; your millennials and generation z crowd.  Now, with a more buttoned up category, advertisements associated with these media platforms will be able to spend their ad dollars with a more prestigious feel.

Instead of advertising on a place where kids go to talk about their lives, post pictures from their weekend, and share memes (social media), marketers can advertise on a place where people go to get direct news, forecasts, and reliable information (media network).

Monday, October 3, 2016

Snapchat: Growth Charts, Name Changes, and Recording Glasses

Snapchat has experienced substantial growth in the social world and it doesn’t look to be slowing down anytime soon. In fact, Snapchat is moving up the ranks in terms of users, popularity, and time spent on the app.

Snapchat made an announcement last week regarding their branding change and the new name of their company, Snap Inc.

This name change is for the company as a whole, as the app will still be referred to as Snapchat. The new name was rolled out alongside a new product that eliminates the “chat” feature.

Snap’s new product is video recording sunglasses which let customer’s record experiences from a first person viewpoint. The glasses record 10 second videos with a simple finger tap. Videos are then sent to the app via Wi-Fi or Bluetooth connection.

Snap Inc., while slowly rolling out more advertisements within their app, are also opening doors for new opportunities within their new product. 

Monday, September 26, 2016

Digital Radio Goes Programmatic

It comes as no surprise to see digital radio (audio) numbers escalating. Nevertheless, all the bells and whistles to follow bring forth some interest.

eMarketer estimates that by 2017, “Digital Radio listenership will grow to 57.8% of the population”. Mutually, ad dollars being spent in the digital audio sector will also grow. However, those ad dollars might be spent in a slightly different way than usual.

The International Data Corporation (IDC) expects for one in five radio dollars (approximately $4 billion) to be booked programmatically by the year 2020. As defined by Prohaska Consulting programmatic buying is, “the process of executing media buys in an automated fashion through digital platforms such as exchanges, trading decks, and demand-side platforms (DSPs). This is an alternative to the traditional use of manual RFPs, negotiations and insertion orders to purchase digital and other platforms.”

So, why is digital making this switch into the programmatic world? Well, simply put, it’s easier and more detailed.

Easier – no longer do buyers have to ask for a proposal, negotiate for the best price, and send in an insertion order in order to make a buy. Now, buyers’ impressions (radio spots) are purchased automatically through a bidding format.

More detailed – Programmatic allows for layers upon layers of targeting with the use of app-login data, first-party registration data, and other third-party data.

So instead of just targeting a person who probably listens to alternative music during the hours of 6am – 8am, advertisers can now target that 28 year old male who loves alternative, drives to work between 6am – 8am and has also been eagerly searching for the perfect diamond ring, wedding venues, houses on the market, and all-inclusive resorts. That extra piece of information opens tons of doors to advertisers to specifically target the soon to be married male in contrast to a 28 year old male who loves alternative and lives in his parent’s basement. 

Thursday, September 15, 2016

Unexpected DVR Trends

I remember when my family first got a DVR; I was a young teenager with two very frugal parents. However, when the cable company offered a free trial, my dad bit the lure and after a few months we were hooked.

Even as a kid, I remember hearing the buzz about how DVR would ruin the television industry and take away from the advertisers. Surprisingly enough, data from Nielsen and the Video Advertising Bureau report a different story.

During the first quarter of 2016, time-shifted programming (recording television and watching it at something other than the original air time) has dropped 12% among viewers 18 and older.

For years, estimates had been that viewership would be roughly 50/50 between time-shifted programming and live programming. However, data from first quarter 2016 shows that 77% of viewing is done live while only 23% comes from DVR viewing.
Other demographics have seen a decline in DVR viewing as well. Those aged 50-64 have dropped 6% while people 65+ have declined 7%.

So, why aren’t people watching as much prerecorded television shows as they used to? After all, it does give you the power to fast-forward through all those commercials. Perhaps the industry is simply shifting. One theory is that the rise of digital media is to blame.

In my mind, this is great for advertisers. Most digital streaming video has opportunity for advertisements without the ability to fast-forward.

Fear not! Viewers are still watching television and they’re still watching their DVRs. Advertisers can still reach their audience during shows; it just might be through their laptop or smartphone screen rather than on “the tube”. 

Friday, September 9, 2016

Managing Makegoods and Broadcast Buys This Political Season

What’s worse than seeing political ads nonstop? If your answer is something other than, “having your ads pre-empted due to political ads nonstop” then it’s almost guaranteed that you don’t work in the media industry.

Borrell Associates Inc. has estimated that during the 2016 election season 5.8 billion dollars will be spent on broadcast television. And yes, you did read that right, that’s billion with a “b”. To top that, broadcast television advertising makes up roughly half of the total advertising spend for political this year.

So how do we prevent these pre-empt spots? Evan Brown points out some strategies in his article, “Working Around the 2016 Political Advertising Season”. Here are a few:

1.      Buy early! Typically stations use a “last-in-first-out” method, so the sooner, the better on those broadcast buys.
2.      Avoid buying five spots per week for a standard program like morning or late news. This gives the station absolutely no flexibility in your placements.
3.      See if 15 or 10 second spots are less likely to get bumped. Political ads are commonly 30 seconds in length.
4.      Accept the fact that the spot you paid $100 for last buy will now be double and adjust accordingly.
5.      Keep on top of your makegoods. Despite receiving them all day, every day, it’s important to respond rapidly to have the best chance to re-placed spots.

Hopefully these tactics can be of assistance in reducing the amount of makegoods into a more manageable task. As The Little Engine that Could would say, “I think I can, I think I can”, so stand strong broadcast television media buyers, there is light at the end of the tunnel!