How Brands Are Making Sweet Music on Spotify

How Brands Are Making Sweet Music on Spotify

Advertising

Spotify is more than a popular, iconic streaming service. It’s a platform for businesses to reach an audience—specifically Millennials and Generation Z—through advertising. And there’s much to be learned from the brands that know how to do it right. Read on for some examples of companies who have advertised on Spotify in smart, creative ways that push the envelope and speak directly to their target audience:

Pepsi “Maxes” Summer Fun

Armed with the knowledge that customers are more likely to crave a cold drink in hot weather, PepsiCo turned up the heat by promoting Pepsi Max, a low-calorie, sugar-free cola. As part of their “Max Your Summer” campaign, which reached out to Australian consumers aged 18 to 49, the beverage giant used dynamic advertising on Spotify, including audio spots focusing on events co-sponsored by Pepsi. The campaign, which ran during the Australian summer, November 2017 to February 2018, was meant to keep listeners up to speed on summer fun in their area, with ads tailored to day of the week and consumer location. The localized approach yielded tangible benefits for Pepsi. According to Power Digital Marketing, “Users who saw the campaign were 34% more likely to agree that ‘Pepsi Max is the #1 tasting no-sugar cola.’”

Hungry? Have a Snickers

In 2018, Spotify ads for the Snickers candy bar operated under a unique premise: that consumers who listen to music outside their typical tastes or comfort zones are in fact . . . hungrier. In creating its campaign, Snickers drew from Spotify data suggesting that a consumer who makes an unexpected switch to a different musical genre or artist is in a different mood, and that mood changes can correlate with hunger. The resulting ad, which targeted listeners who changed things up, featured faux musician “Aneta Snickers” rapping about how when you are hungry, “you’re not you.” The answer for the presumably hungry listener? A Snickers bar, natch.

Jose Cuervo Wants Your Favorite Playlist

In a Spotify campaign targeting United Kingdom college students, Spotify and Jose Cuervo tequila partnered with 50 student radio stations in the UK to collect playlists curated by students from 50 universities. The lists were subjected to a public vote; student consumers could vote for their uni playlist and the chance to win a concert. The campaign was a success for Jose Cuervo and Spotify: votes far exceeded campaign predictions. And it was a success for students at the winning University of Portsmouth, who enjoyed a concert headlined by Alexis Taylor (Hot Chip) and Orlando Weeks (The Maccabees).

Chuze Fitness Reaches Out When You Work Out

Chuze Fitness has also made the most of the Spotify platform. The gym chain, which has been growing nationally, wanted to create brand awareness for their new locations. Of course, when people work out, they listen to music. So Chuze Fitness worked with Spotify to deliver their message. The resulting advertising campaign geo-targeted the city where the new Chuze Fitness gyms were located, even as it specifically targeted people listening to “fitness” playlists. The strategy proved profitable: according to Power Digital Marketing, Chuze Fitness “saw an uptick in their brand interest on Google through Google trends within the city [where] they were advertising.”

Why Spotify?

Companies who work with Spotify can benefit from the platform’s strong brand. They also can maximize their reach thanks to Spotify’s exceptional targeting tools, such as:

  • Interest targeting, which helps brands understand consumers’ passions via their listening preferences, and subsequently connect with a specific audience in a meaningful—and effective—way.
  • Real-time context targeting, which allows brands to target people based on their habits—and tendencies—at specific times of day. Someone waking up is typically in a different frame of mind than someone studying, or to use the Snickers example, someone who is hungry. Understanding the psychology of users at different times, and when might be the best time to share a branded message with that user, is a powerful tool.

Of course, Spotify isn’t the only game in town. The platform faces stiff competition from Apple Music, Amazon, and other streaming services. But in a crowded market for music streaming, Spotify still stands out.

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Want to find out how Spotify can enhance your digital outreach? Contact us.

How to Advertise to Gen Z

How to Advertise to Gen Z

Advertising

Generation Z is a fast-growing demographic, and savvy businesses are getting to know them and how to connect with them, as good marketers have done with generations that precede Gen Z, such as Millennials and Baby Boomers. Who makes up Gen Z, and why are they important? Read on for a thumbnail sketch of the generation that has grown up in an “always on” technological environment.

Who Is Gen Z?

Pew Research defines Generation Z as anyone born from 1997 onward. Bloomberg research indicates that in 2019, Gen Z will comprise about 32 percent of the population, making it the most populous generation — larger even than the Millennial generation, which, for years, has dominated the imagination and attention of advertisers.

Gen Z is different from any other generation because of one simple fact: they are true digital natives. They don’t know life without smart phones. In addition, they are growing up in an economy where ownership isn’t mandatory or even preferable: Older Gen Zers are comfortable renting someone else’s belongings to get from Point A to Point B (think Uber) or spending time in a new city (Airbnb), a pattern that will probably persist once they come of age and have real spending power. And this is a generation invested in meaningful social connection and expression, where “friend” count, or quantity, is less important than the quality and personal nature of one’s connections.

5 Way to Connect with Gen Z

It’s important that your business understand how to communicate with Gen Z. What are the keys to a meaningful connection with a tech-savvy generation that values just that — connection?

1 Lead with Digital

Use online advertising as the cornerstone for all your advertising. Remember, this is the generation that is growing up digital. As Jonah Stillman, the co-author of “Gen Z @ Work” and a 2018 panelist at Advertising Week in New York City, has noted, “[Generation Z] sees no difference between the physical and digital worlds. This is a generation that is native to technology and has complete comfortability with [their] phones.” This is also a multi-screen generation: if Millennials are known to use three screens at once, you can plan on Gen Z using five. Make sure your ads are present across multiple platforms in order to optimize views and clicks.

2 Be Visual

Gen Z is growing up in the age of YouTube and Instagram. For example, online videos are a key brand discovery platform: Marketing Dive reports that 56 percent of the group has indicated “they want video to reflect the products and services they already own or are specifically interested in.” As we have blogged, creating great visual content is no longer a nice to do – it’s a must-do.

3 Look beyond Facebook

In 2018, eMarketer senior forecasting analyst Oscar Orozco told Business Insider that “[o]utside of those who have already left, teens and tweens remaining on Facebook seem to be less engaged—logging in less frequently and spending less time on the platform.” A 2017 Piper Jaffray survey, in which only nine percent of teens designated Facebook as their preferred social-media platform, confirms this trend. As nineteen-year-old Ishan Goel, a marketing strategist with the Mark Cuban Companies, observes, being on Facebook is “not cool.”

So where is Gen Z spending its digital time? According to Ishan Goel, “Because Gen Zers are individualistic and value their privacy, they prefer anonymous social media like Snapchat, Secret, and Whisper rather than Facebook,” An Hodgson, an income and expenditure manager at Euromonitor International, notes that Instagram is also a go-to.

4 Be Authentic

This isn’t necessarily a generation invested in status. Piper Jaffrey reports that “refined-classic” brands like Ralph Lauren or Vineyard Vines are suffering record lows in the Gen Z market, dropping from a 14 percent average to a 5 percent market share among teens. (That said, according to a recent report from consultancy Irregular Labs, 25 percent of the 1,000 13- to 24-year-old females surveyed indicated that they are saving up to buy a luxury product.)

Gen Zers also value ads with everyday people in them, as opposed to celebrities. Look to retailers like Target for a sense of how to get it right when it comes to authenticity: in Target’s online as well as in-store advertising for women’s fashions, for example, models come in all shapes. And in the store itself, even the mannequins showcasing the clothing are different sizes.

5 Tread Carefully with Cause Marketing

Gen Zers value social issues. In a new study from the consulting firm DoSomething Strategic, two-thirds of Gen Z consumers indicate that there is a correlation between a brand’s association with a social cause and positive impressions of that brand. That said, authenticity (see above) must be established: any whiff of a disconnect between the cause marketing and a company’s values, and Gen Z will not be impressed. Furthermore, a study published in the Journal of Advertising Research suggests that businesses should avoid relying on guilt in any cause-related marketing they pursue.

Contact True Interactive

Looking for more insight into how to reach Gen Z with your digital advertising? Contact us.

Photo by JodyHongFilms on Unsplash

3D for Brands: No Longer a Novelty

3D for Brands: No Longer a Novelty

Advertising

3D is no longer a novelty. It’s becoming a way for businesses to share both advertisements and organic content. Case in point: Bing Ads recently teamed with Samsung to create 3D advertisements that display when consumers search for Samsung Galaxy devices on the Bing search engine.

Here’s how it works: an option for a 3D ad appears when an individual (using Bing) searches for the Samsung Galaxy S10 or S9 on their desktop. The ad, which expands to full screen size, can be manipulated by rotating the image, or zooming in on it. But it’s more than a zoom. Consumers see every aspect of the Samsung device plainly, from multiple angles, and can click on an image to access product details.

As Ravleen Beeston, UK head of sales for Microsoft Search Advertising, said in a statement to Netimperative, “These new 3D ads, unique to Bing, herald a new era of search advertising when it comes to displaying products through desktop search since they complement and enhance the experience for consumers looking to engage with a product.”

3D on Facebook

In addition, Facebook has made it possible for both businesses and consumers to post 3D photos, which makes organic content really pop. As discussed in this Digiday article, the 3D photos are “inherently thumb stopping.” If long-form video is showing a decline in effectiveness as attention spans likewise decline, 3D photos promise to be the next frontier. And brands are jumping at the chance to engage consumers in a fresh way. 3D can be especially useful for retailers trying to showcase products that require close inspection—expensive cellphones, for example, or even food. Food delivery service Bite Squad, for one, has capitalized on the opportunity by posting 3D photos, including one of BBQ from Famous Dave’s. “My goal is to catch your eyes as you [are] scrolling your feed,” Craig Key, CMO of Bite Squad, said, adding that just the sudden movement of an image can be a reason for users to scroll back up.

What You Should Do

At True Interactive, we recommend that you constantly look for ways to incorporate technology such as 3D if they are appropriate for your business:

  • Understand how 3D might add value to your paid and organic content. Don’t be gimmicky about using 3D. Have a specific goal in mind, such as increasing engagement with your ads, especially for products that require high levels of consideration.
  • Be aware of companies such as ThreeKit that provide technologies to help you design advertisements in 3D.
  • Work with an agency partner such as True Interactive that knows how to incorporate formats such as 3D into a larger advertising campaign.

Interested in exploring the opportunities inherent in 3D? Call us.

Google Makes Ads More Shoppable

Google Makes Ads More Shoppable

Google

Google understands the power of images. To remain competitive with visual platforms such as Pinterest and Instagram, Google is introducing a feature called shoppable ads on Google Images. With this new format, shopping online through image search just became easier than ever.

Shoppable Ads

According to Google’s blog, half of online shoppers say that images of a product inspire them to make a purchase. And Google has responded to that input with shoppable ads on Google Images. The format, which allows advertisers to highlight multiple products for sale within a sponsored ad appearing in Google Images results, is currently being tested with select retailers.

The format works as follows:

  • A shopper searching for, say, home office ideas on their desktop or mobile device, can pull up a series of sponsored ads in Google Images.
  • Retailers have the ability to tag several products in an ad.
  • When the consumer scrolls through these ads, they can hover over items for sale in any given image and learn specific details—like price and brand—about those items.

Being There for the Consumer

The new development is significant. By making it easier to make purchases using the power of visual search, Google demonstrates a real understanding of how consumers shop. According to Adweek, it also makes Google competitive in an arena in which Pinterest and Instagram are making headway. (On Pinterest alone, people conduct hundreds of millions of visual searches monthly.) As Daniel Alegre, president, retail shopping and payments at Google, said during a keynote at the retail conference Shoptalk, “No journey is exactly alike. With so many choices and awareness, awareness is about being there when the consumer is looking for you.”

For more information about how to use images in your online advertising, contact True Interactive.

Image source: https://www.searchenginejournal.com/google-introduces-shoppable-ads-on-google-images/296551/

 

 

Facebook Shares an Advertising Roadmap for 2019

Facebook Shares an Advertising Roadmap for 2019

Facebook

Call it was the meltdown that wasn’t.

As Facebook prepared to announce its quarterly earnings January 30, there was a lot of public speculation that its scandal-ridden year might finally scare away advertisers and members.

The doubters were wrong.

Here’s what Facebook announced:

  • A 9-percent year-over-year increase in monthly active users, with 2.32 billion as of December 31, 2018.

  • Fourth-quarter revenues of $16.9 billion, up 30 percent year-over-year. That number beat Wall Street’s expectations of $16.4 billion.

Facebook is not only weathering months of data-privacy scandals, it is actually getting stronger. At True Interactive, we’ve shared our concerns about Facebook’s scandals and their possible impact on advertisers. We still think it’s important that advertisers watch Facebook closely. The threat of government regulation looms large. The number of fake and duplicate accounts are on the rise, by Facebook’s own admission (116 million fake accounts and 255 million duplicate accounts exist on the site). But advertisers should also be aware of some other numbers:

  • 93 percent of Facebook’s advertising revenue comes from mobile.
  • 500 million people use Instagram Stories daily.

  • 2 million advertisers are now focusing on Stories.

Stories play a big part in Facebook’s growth plans for 2019, which Mark Zuckerberg published in a Facebook post. I have excerpted some highlights and used boldface to emphasize some points that jump out at me:

Messaging is the area that’s growing the most quickly, and this year people are going to feel these apps becoming the center of their social experience in more ways. We’ll roll out payments on WhatsApp in some more countries. Private sharing in groups and stories will become more central to the experience. We’re going to onboard millions of more businesses that people can interact with.

On Facebook, I also expect this to be the year where Watch becomes more mainstream. There are now 400 million people who use it every month, and people spend on average over 20 minutes on Watch daily. This means we’re finding ways for video to grow outside of News Feed so it doesn’t displace the social interactions that people primarily come to our services for.

In Instagram, one of the areas I’m most excited about this year is commerce and shopping. There’s a lot of natural activity happening here, and this year I expect us to deliver some qualitatively new experiences around that.

Longer term, I remain very focused on building technology that brings people together in new ways, including through AR and VR. I’m looking forward to Oculus Quest shipping this spring — the feedback there so far has been very positive.

The numbers tell me this:

  • Advertisers need to understand how to capitalize on messaging. In September I wrote an Adweek column about Facebook monetizing WhatsApp. Clearly, Facebook is going full steam ahead here.
  • If you aren’t using Stories, you’re behind. Stories are now table stakes for brand building on Facebook’s platform, which includes Instagram Stories.
  • Figure out how Facebook Watch plays into your strategy. So far adoption numbers are underwhelming. But these are early days. The success of Facebook Live shows that Facebook knows how to make video a branding platform.
  • Integrate your Instagram with commerce. Brands are getting better at giving users compelling reasons to stop scrolling and buy. Expect new features to make social shopping more of an experience.
  • Augmented reality and virtual reality are branding plays for forward-thinking businesses, but AR and VR still have a long way to go.

Facebook is not as weak as its doubters said it was. Neither is Facebook as powerful as some would have you think. The company has issues. It’s not the cool place for Gen Z to hang out. A potential recession coming up could take a bite out of its advertising revenues. And as I mentioned, regulation is a constant threat. But Facebook remains a strong platform for advertisers with exciting features worth embracing. For more insight into how to succeed with digital media, including Facebook, contact True Interactive. We’re here to help.

Alexa Stars in Amazon’s 2018 Earnings Announcement

Alexa Stars in Amazon’s 2018 Earnings Announcement

Amazon

The conversation about the voice interface no longer focuses on whether we’re entering a voice-first world. The questions have quickly shifted to who will lead it and how soon using our voices to search for things and manage our lives will be as second nature as texting.

My teammate Taylor Murphy recently discussed an answer to the first question: no single firm “owns” the voice-first world, but both Amazon and Google have a strong lead. The answer to the question about how quickly voice will saturate our lives comes down to how soon people will be comfortable using voice to do tasks that require extremely high levels of trust in the device you’re using, such as buying a product or handling an emergency. Most people use voice to do mundane things like check the weather. Few actually ask Alexa or Google Assistant to order a pizza or conduct other transactions. That’s because we’re not quite ready to trust a device to interpret our speech with enough accuracy.

The major players in voice are trying to address that issue. In Amazon’s January 31 earnings announcement, CEO Jeff Bezos said, “The number of research scientists working on Alexa has more than doubled in the past year, and the results of the team’s hard work are clear. In 2018, we improved Alexa’s ability to understand requests and answer questions by more than 20% through advances in machine learning, we added billions of facts making Alexa more knowledgeable than ever, developers doubled the number of Alexa skills to over 80,000, and customers spoke to Alexa tens of billions more times in 2018 compared to 2017.”

Normally CEOs comment on high-level, visionary messages in earnings releases, such as top-line growth, major product launches, and corporate strategy. I find it interesting that Jeff Bezos decided to talk about Alexa’s accuracy, and the number of Alexa skills developed. What does this tell you? That Alexa is strategic to Amazon. Jeff Bezos already saw the voice-first world coming, and he decided to help shape it.

So what does all this mean to businesses that advertise online? It means that before you know it, we’re going to turn the corner with voice accuracy. Consumers will use their voices for e-commerce. So it’s important to prepare. For example, as noted previously by my colleague Taylor, advertisers should evaluate their search queries and look for conversional text (“Who,” “What,” “Where,” “When,” “Why,” and “How” are great phrases to focus on). Also, pay attention to any long-tail queries that include a natural phrase such as “near me” or “can I get the number for . . . ”

The above advice applies not only to optimizing content on your websites but also preparing your paid media, such as paid search campaigns. Thinking like a customer might be the most effective way of ensuring your digital marketing efforts are visible to RankBrain – part of Google’s core algorithm that employs machine learning to draw the most relevant results from a search query. RankBrain collects multiple data points like keywords and the searcher’s location in an attempt to identify the intent of a search to then pair the query with the most relevant and valuable result.

Remember, voice isn’t just about using Echo or Google Home. It’s also about doing voice searches on devices where ads appear.

If you sell products on Amazon, the sense of urgency to adapt to voice is even greater. Amazon is clearly using its own retail platform to sell more Echo speakers, and more Echo speakers means more people using their voices to find and eventually buy things on Amazon.

You don’t want to be a laggard in that world. Contact True Interactive to make your online advertising flourish.

 

Why Netflix Might Embrace Advertising

Why Netflix Might Embrace Advertising

Advertising

Netflix and its boosters are celebrating the company’s first ever Best Picture Oscar nomination for Roma – but the company is also catching fire from investors. Although its fourth-quarter 2018 financial results beat Wall Street estimates for earnings per share, revenue fell below projections.

Netflix also faces other formidable challenges, such as increased competition from streaming services (e.g., Amazon and Hulu), the entrance of new services such as Disney+, and the enormous cost of spending on original content. So perhaps it’s no surprise that Netflix has raised prices. But in recent months, Netflix has also been testing ads between episodes, and its customers have not been happy about this development. The company said that trailer tests were just a way to surface new programs to loyal viewers, claiming it will help members “discover stories they will enjoy faster.”

With pressure coming from multiple sides, how can Netflix increase revenue and expand its subscriber base without losing its customers?

Competition from Hulu

We’ve seen at least one streaming service employ advertising: Hulu. When Hulu first launched in 2007, all content was completely free and supported by advertisements. In 2010, the company launched its first subscription option while maintaining the original ad-supported tier. Then in late 2016, the brand migrated towards a subscription model. Today Hulu offers ad-supported and ad-free pricing tiers.

The ad-supported tier has served Hulu well by increasing brand awareness and expanding its subscriber base. Granted, Netflix does not need to boost brand recognition. However, Netflix (and Amazon, for that matter) could benefit from this strategy if it wants to enter into new markets, which should be a priority for Netflix given the financial turmoil the brand has been recently experiencing.

Providing an ad-supported service plan might sound like a step backwards to Netflix stockholders. If Hulu moved away from it, why would Netflix bother?

  1. Original Content

The creation of original content is perhaps the most dramatic change in the way streaming services operate. Whereas audiences used to turn to streaming services to watch, say Finding Nemo, people now use these services for original movies and shows, a reality that was underscored by Netflix’s Roma being nominated for 10 Academy Awards.

With Disney’s new movie streaming platform launching later this year, it is clear that movie streaming companies no longer want to simply be a content warehouse, storing thousands of movies and TV shows made by third parties. Netflix, Hulu and Amazon want to lure potential customers into becoming subscribers through their exclusive movies and shows. This means that streaming platforms have the bargaining power, as they all have some unique value nobody will find elsewhere.

The quality content matters. Unique content attracts more paying subscribers, which gives Netflix a bigger platform for potential advertising. With 139 million subscribers worldwide, Netflix could easily increase that number by introducing an ad-supported tier. Doing so would also help relieve some of the financial pressure caused by the expensive production costs of original content – around $12 billion in 2018 alone, and expected to grow by 25 percent  to a whopping $15 billion mark in 2019.

  1. Google/Facebook Duopoly

It’s no secret that a large number of companies today are directing a good portion of their ad spend to Google and Facebook/Instagram (and, increasingly, Amazon). Other channels simply cannot match the performance, scale, and targeting capabilities of these tech giants. The growth of these platforms also reflects the strength of the digital advertising industry and suggests that there is room for more businesses to launch advertising based on their built-in audiences. As noted, Netflix has a growing audience with 139 million subscribers – and Netflix aspires to grow more especially outside the United States.

3 Targeting Capabilities

Knowledge is power. Think about all the behavioral data and Netflix has on its subscribers. Netflix can offer advertisers advanced interest targeting based on their activity on each platform. By using algorithms and machine learning, Netflix can predict which type of content a specific user may want to consume next. This data could also be used to serve users ads that are relevant, and for marketers, effective. In addition, with the help of pixels, Netflix would be able to collect data outside its environment just like Google and Facebook do, thus providing advertisers with more insights on the consumer behavior outside the streaming services and the customer journey.

It’s too soon yet to know if Netflix will launch an ad-supported tier. However, I wouldn’t be surprised if it does in the near future, as companies built on the “ad-free” premise are now acknowledging their advertising potential and evaluating the cost-benefit relationship of introducing ads to their platforms, just like Whatsapp. Is advertising revenue too tempting for Netflix?

To maximize the value of your online advertising, contact True Interactive. We’re here to help.