Connected cars, predicting TV ad performance, and a decade of online ad research
10 years on, online advertising researchers can do more to help practitioners
Academic Insight; Advertising; Digital & Martech; Market Research, Metrics & Data;
A review of 300 articles from the last decade of online ad research calls for a practical focus.
Since the first banner ads in 1994, online advertising has grown to account for 41% of total ad spending across more than a dozen formats, a total of $209 billion in 2017. Referring back to similar reviews in 2008, this paper breaks the field into 6 key areas and surveys progress and future questions in each.
Highlighted in particular is the need for more work on measuring the effectiveness of online ads. Earlier consensus around their superiority to offline media has been questioned by more recent findings, which show variation between categories and segments, and examine the quality of visual attention to digital ads. The sequencing of exposure to different media is thought to be important and needs to be understood better.
It ends by making broader recommendations. Researchers should do more to develop general theories to guide this young subject and engage with more diverse experimental methods, such as those involving neuroscience and physiology. It also calls for an increased focus on real world implications for firms and practitioners. This should include new skill requirements, altered client-agency relationships and changes to organisational culture.
Read the original article in The Journal of Advertising:
https://doi.org/10.1080/00913367.2018.1556138 [30 minute read; article may be behind a paywall]
Viewer heart rate could be a reliable predictor of TV ad performance
Academic Insight; Advertising; Market Research, Metrics & Data; Customer;
TV ads must capture attention to generate sales and biometrics could help measure it.
This study took 100 past ads with known sales impacts and measured viewer attention in a variety of ways to try to uncover which measures are reliable for predicting the performance of new ads. Specifically, it used 3 biometric measures – eye tracking, skin conductance and heart rate – and recorded the effects of different creative elements from the ad slots. The creative tactics covered included voiceovers, shots of branded packaging and the use of animals.
The results are complicated. The research discusses 3 distinct levels of attention, and the impact of different ad elements were found to be best captured by different attention measures. Some tactics, like packaging shots, were even found to have negative impacts on attention, and translated into reductions in brand recall and sentiment towards an ad.
Overall though, the findings are a step towards a more sophisticated and complete “measurement toolbox” for testing TV creative and one conclusion is that multiple attention metrics are needed to fully understand the likely impact of an ad. The authors suggest that heart rate is the most reliable and widely applicable measure of market performance, and point out that measuring it can be done cheaply and at scale through webcam technology.
Read the original article in the Journal of Advertising Research:
https://doi.org/10.2501/JAR-2019-002 [40 minute read; article may require registration]
Spotify tweaks its terms of service to ban ad blockers
News & Trends; Advertising; Digital & Martech; Customer;
The new policy will allow Spotify to suspend accounts that use ad blocking technology.
Around 70 million internet users in the US deploy ad blockers, according to eMarketer report last year. Spotify announced this week that it has 116 million ad-supported monthly active users and generated $198million in ad revenue in Q4. Their ad-free monthly subscription at $10 is currently used by 96 million people.
But the company told investors last year that around 2 million users had tools to “suppress” ads. The new terms of services expressly forbid “circumventing or blocking advertisements in the Spotify Service, or creating or distributing tools designed to block advertisements in the Spotify Service".
Read the original article in AdAge [2 minute read; article may be behind a paywall]
Marketers shouldn’t dismiss print media, even for younger audiences
Thought Leadership; Content; Advertising;
This comment piece outlines some strengths of, and misconceptions about, advertising in print.
It reports MarketingProfs research that consumers trust print ads 34% more than search engine ads when making purchase decisions and a large majority of 18 to 23-year-olds find reading printed content easier than digital.
And, counter to many expectations, younger generations consume a similar amount of print media to older readers, at least as far as magazines are concerned. MNI found that while Baby Boomers read an average of 9.2 magazines per month, Gen X and Millennials read 9.1 and 8.9 respectively.
Overall, it argues that using print content can help brands stand out compared with the saturated digital media environment. It is also a more trusted medium and is likely to see better ROIs as readers are exposed to each ad for longer and on more occasions than online ads.
Read the original article in Relevance [5 minute read]
Large scale advertising in cars is probably a way off
Thought Leadership; Advertising; Brand & Product; Automotive & Transport;
Connected cars hold huge potential for marketers but it is unlikely to be fulfilled until autonomous vehicles arrive.
Sales of connected cars are predicted to rise to 19.5 million in the UK in 2022 and the recent announcement of a partnership between Google and Renault, Nissan and Mitsubishi Motors is fuelling speculation about the possibilities for marketers and advertisers.
While connected cars could generate vast amounts of useful data to drive targeted messaging in cars, currently a range of issues look to be holding progress back. There are concerns about cybersecurity and data privacy, and some brands and consumers feel that any ads in their vehicles would be intrusive or even unsafe.
This article concludes that it may not be until autonomous vehicles begin to be widely used that in-car advertising will take off, as they would alter the context and constraints of consumers in their vehicles. But brands should be thinking about future opportunities now to ensure that they’re ready to take advantage.
Read the original article in The Drum [7 minute read]
Global brands need to learn from local challengers to win back market share
Expert Advice; Brand & Product; Retail & Consumer;
Research from Accenture shows big consumer brands how to beat local competition.
Emerging markets like China, India, Brazil and Indonesia were previously powerhouses for large consumer goods companies but their market share has been falling, despite these markets growing overall.
In 2017, 75% of the top 3 brands in the countries and categories studied were small, local or new brands. Their advantage seems to be an ability to launch highly targeted products founded on local insight and research, and distribute them quickly and effectively.
To respond, global companies need to include smaller, locally focussed products in their portfolios. They should embrace faster launches and accept the increased failure rates and shorter lifecycles that come with it. Finally, local teams should be empowered to generate ideas or fresh approaches should be adopted through M&A if necessary, then leveraged with global resources.
Read the original article in the Harvard Business Review [8 minute read; article may be behind a paywall]
Direct brands require a different approach from marketers
Expert Advice; Brand & Product; Advertising; Digital;
The IAB advises publishers and media organisations on working with direct-to-consumer brands.
Direct startups have not only innovated with products and distribution but they also bring a new approach to marketing challenges, with a focus on first party data, personalised messaging and lifetime customer value.
This impacts on the way they buy media and work with marketing partners. Since their reach and relationship with consumers is so crucial, for direct brands “the media buyer is the brand” and CEOs are often directly involved.
To meet their unique needs, marketing partners should get to know the product and how they want to engage with their audiences, offer self-service solutions that give brands flexibility and be consultative to help them understand metrics and effectiveness of their campaigns.
Read the original article at iab.com [5 minute read]
Opinions expressed in this article are those of the original authors and not necessarily YouGov