8 Digital Advertising Predictions for 2020

8 Digital Advertising Predictions for 2020

Advertising

Google takes control of advertising. More businesses feel the heat over consumer privacy. Voice search gets smarter. These are among the trends influencing digital advertising in 2020, according to True Interactive. Here’s a sample of what’s on our minds:

1 Google Takes Control of Advertising

Google is taking away manual control of Google Advertising with the removal of the average position metric and by continuing to implement automated bidding tools and metrics such as top impression share that make measuring search ranking less transparent. As a result, CPCs are going up.

Going forward, Google will continue to push automated bidding strategies. Google’s rationale is that its algorithms are smarter, making it possible for Google to adjust bids per auction. But smarter bids are not necessarily less costly ones in the short term, and there is still much trepidation by marketers in handing total control over to Google, who stand stands to profit from an increase in CPCs and overall spend. Bottom line: as Google continues to make manual bidding more challenging, advertisers will be forced to buy into automated bidding with less transparency.  Expect CPCs to increase at least in the short term as businesses hand more control over to Google.

— Beth Bauch, senior manager

2 The CCPA Throws Down the Hammer on Big Tech

By July 2020, we will see the first major lawsuit against one of the big technology firms – likely Facebook or Google – over a violation of the California Consumer Privacy Act (CCPA). The CCPA, which goes into effect January 1, is evolving. Businesses are still figuring out its vagaries and requirements. Google and Facebook are in interesting and vulnerable position because they touch so much audience data for businesses, increasing their risk level. And we know Facebook’s track record for privacy violations, don’t we? Watch for it: a major lawsuit will happen that forces businesses to come to terms with the CCPA.

— Tim Colucci, vice president

3 Netflix Adopts Advertising

Netflix will need to adopt some form of advertising. Netflix has achieved phenomenal growth, to be sure. But the entertainment company also faces unprecedented threats with Disney+ and, eventually, Apple+ once Apple figures out a long-term strategy that works. (Apple has a lot of cash and time to get Apple+ right. Just wait.)

In addition, the cost of creating content is putting Netflix in an interesting bind: when Netflix has a hit show, it has to spend more money to accommodate audience demand, creating even more costs. On top of all that, for the first time in a long time, Netflix has reported drops in membership levels.

Netflix will likely introduce a less-expensive ad-based model, but the company will also do something it has avoided pursuing: product placements in shows like Stranger Things, which popularized brands such as Kellogg’s Eggos without earning Netflix a dime in return. Those days will come to an end as Netflix responds to pressure from investors to cover its costs and respond to the threat of Disney.

— Héctor Ariza, manager

4 Voice Search Gets Smarter and More Useful

I’ve written often about the rise of voice search, and I continue to see more people using their voices to find things with their smart speakers, phones, and in-car devices. But what’s changing is that people are getting more comfortable buying things, not just searching for things, with their voices. That’s happening because as we get accustomed to the ease of using our voices to manage our lives, we are gradually becoming more comfortable accomplishing more complex tasks. In addition, thanks to improvements in artificial intelligence, voice-enabled devices are getting smarter and more capable of managing purchases and product orders. Frankly, the market got flooded with smart speakers such as Amazon Echo and Google Home before AI was adequately advanced to make a voice-activated speaker as smart as we’d like them to be. Those days are rapidly drawing to a close.

— Taylor Murphy, manager

5 Google Monetizes Maps and Google My Business

We recently blogged about the fact that half of searches on Google stay on Google properties such as Google Maps, YouTube, and a business’s Google My Business (GMB) listing. In other words, half of searches are not resulting in clicks on a business’s website. In addition, Google My Business is the most important local search signal according to the Moz Local Search Ranking Factors. These data points mean that businesses need to invest more time and energy maximizing the value of their presence on Google. Google knows this reality and is getting more aggressive about offering advertising products for businesses on these sites. Earlier in 2019, Bloomberg discussed how Google is evolving Google Maps with more advertising tools. Especially as more cars integrate mapping technology, Google is going to place even more advertising emphasis here. I also expect Google to provide more advertising options for businesses to promote themselves on their GMB listings. I also would not be surprised If Google introduces a premium version of GMB in which businesses will enjoy more features for a cost.

— Mark Smith, co-founder

6 Cause Marketing Faces a Reckoning

Cause marketing has been around for years. Businesses have learned they can create stronger emotional ties with customers and job seekers by associating themselves with a topical issue such as sustainability. In 2019, businesses were falling all over themselves to promote a position on sustainability as the topic reached all-time levels of public awareness. But there’s just one hitch: we’re seeing a glut of cause marketing campaigns, and they’re not necessarily connecting with consumers. I was reading a recent report from DoSomething Strategic that discusses how businesses have struggled to make their cause marketing connect with young people. Gen Z definitely wants to associate with purpose-driven companies. But businesses still have a lot of work to do in order to convince them that they’re aligned with Gen Z values. Businesses are going to become more careful about how they do cause marketing. I believe we’ll see fewer online ads and a more thoughtful use of content marketing, PR, social media, and native advertising in which a business can spend more time having a longer-term discussion about issues it cares about. Businesses will humanize these conversations by sharing their position through the voices of their people.

— Kurt Anagnostopoulos, co-founder

7 Agile Advertising Takes Hold

We all know about real-time marketing, in which a brand uses social media to turn a news event into a marketing opportunity. Agile advertising occurs when a business acts on a recent event and creates a connected marketing experience that endures well beyond a single tweet, Facebook post, or other digital impression. We saw Bud Light exercise agile advertising during the World Series when it capitalized on the fact that a fan in the stands stopped a home run ball with his chest while holding two Bud Lights in his hands. Bud Light created a series of marketing moments including creating a branded T shirt depicting the fan stopping the home run ball. Bud Light paid the fan to attend another World Series game sporting the Bud Light attire. We also saw agile advertising in action when Aviation Gin created a slick ad online that gently made light of the controversial Pelton cycling ad. I see more businesses adopting this practice because the digital production tools have evolved to the point where talented storytellers can quickly conceive of an idea and get it into market with an ad that taps into current events and endures for days and weeks.

— Max Petungaro, associate

8 Hispanic Marketing Hits Its Stride

In the United States, 69 counties are majority Hispanic, doubling from 34 in 2010. Hispanics have increased their economic power, reflecting a growingly diverse U.S. population. In 2020, Hispanics will possess $1.7 trillion in buying power. The United States continues to reflect Hispanic tastes in all aspects of our culture (including and beyond the Hispanic community, ranging from movies to popular music). We’re going to see businesses apply research and targeting to do more effective, sophisticated Hispanic marketing that recognizes the diversity and tastes that reside among Hispanics. Brands are already capitalizing on this growing market. (For more insight about marketing to Hispanics, check out our blog post.) And tech companies such as Google are responding to a more multicultural world in general by making their platforms more open to people who speak languages other than English, an example being how the Google Assistant voice software can interpret 44 languages on smart phones. These types of developments will help bridge the world between businesses and Hispanics in 2020.

— Amanda Cortese, associate

Contact True Interactive

To succeed with online advertising in 2020, contact True Interactive. Read about some of our client work here.

 

 

 

 

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Gaming: a Golden Marketing Frontier

Gaming: a Golden Marketing Frontier

Marketing

As reported by VentureBeat, a new Consumer Technology Association (CTA) study indicates 70 percent of Americans aged 13 to 64 play games. That’s a whopping 192 million U.S. consumers, a number that reflects the way gaming has been informed in recent years by social phenomena like increased smartphone use. Brands who understand this demographic shift can only benefit.

Gamers: Who Are They?

The 2019 Future of Gaming study defines gamers as anyone who played video games for at least one hour in the past three months. And according to the study, the aforementioned 192 million gamers—playing on consoles like Xbox One or PlayStation 4; smartphones or tablets; and PCs—embrace gameplay as entertainment, but also as an active social channel. Perhaps because of this, the classic stereotype of the typical gamer—young male—no longer applies. Games are drawing a much bigger demographic.

“Not only is the classic teenage-boy-gamer stereotype untrue today, but it’s even less accurate when it comes to mobile games,” notes Tom Simpson, vice president, brand and exchange, APAC, AdColony. “More than one billion Asian consumers of all ages and genders play games every day on their smartphones. In fact, across many markets in APAC we see a larger number of female gamers than male.” Consider games like Candy Crush and its successor, Candy Crush Soda Saga: the archetypal player is a woman aged 25 to 45.

What Gaming Means to You

Because the gaming demographic is so large and varied, gaming represents a golden opportunity for brands. According to The Drum, projections indicate the global mobile gaming market will be worth $174 billion by 2021, for example. Advertisers can target a niche audience in that market, or deliver brand awareness at scale. It’s ultimately up to the brand, its budget, and advertising objectives.

Examples of Brands Killing It with Gamers

So who’s already doing it right? Look no further than Coca-Cola, which rolled out a mobile game app targeting teens and young adults. In the Crabs & Penguins game, developed by Coca-Cola’s Content Factory in partnership with McDonald’s, users guide a crab character through races and dangers, coming into contact with other animals, such as polar bears, along the way. The ultimate goal? Returning a soccer ball to a cast of penguin characters. The stated goal of the game is to “spread happiness,” which also happens to be Coke’s tag line; characters and products in the game are also branded with the Coca-Cola logo. Bottom line: the Coke brand is on the user’s mind as they play the game.

Meanwhile, brands like Gatorade and Asos are succeeding by matching product to game. In a digital recreation of how the sports drink fuels real-life activity, Gatorade offered players a digital “electrolyte boost” via energy refills in EA’s Madden NFL Mobile; gamers could then play longer. Clothing brand Asos, in turn, paired with The Sims Mobile game, introducing branded clothing and timed quests to Sims players. The real-world experience of shopping for clothing online proved a good match to the customization options within the game.

Three Key Takeaways

So what does this mean for your brand? Consider these takeaways:

  1. Gamers are a diverse audience. Identify your demographic; chances are that group plays games in some form. What games does your target market like to play? Understanding what games your customers enjoy helps you know where (and how) to reach them. Are you targeting busy moms who relax over a game of Candy Crush? Teens likely to be snacking (or craving a snack) while playing Fruit Ninja?
  2. Consider what games might be a good one-on-one match for your actual product. Are there games that digitally recreate the universe your product occupies in real life?
  3. Finally, consider whether your brand (and budget) are best served by targeted outreach, or more of a universal awareness blitz.

Contact True Interactive

Need help navigating the opportunities afforded by the gaming market? Contact us. We can help.

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Why Sneakerheads Matter to Advertising

Why Sneakerheads Matter to Advertising

Advertising

Like gamers, sneakerheads constitute a passionate fan base. Much more than a passive audience, sneakerheads—who collect, trade, and/or develop an exhaustive knowledge of sneakers as a hobby—represent a culture that dates back decades. Sneakerhead culture can in fact be traced back to the 1980s, when the popularity of Michael Jordan and his line of Air Jordan shoes, as well as the explosion of hip hop music, made the idea of collecting shoes not only possible, but cool.

Sneakerhead culture overlaps with other cultures such as hip hop and fashion, making sneakerheads as an audience especially culturally relevant. Even if they are not your audience, understanding how brands court sneakerheads can be instructive to you. That’s because understanding the innovative ways brands have reached out to this group can inspire you as you reach out to your own market—and tap into a culture to make your brand more relevant.

Here are a few interesting and effective ways in which brands have recently reached out to sneakerhead culture:

Empowering Consumers to Be Retailers

In August 2019, Adidas announced a partnership with the social commerce app Storr. Storr, which allows consumers to open a store from their phone in three clicks, is now part of a campaign in which individuals who are part of the Adidas Creators Club can literally become “social sellers” of Adidas goods. The Creators Club membership program was launched in 2018 as a way for the most passionate Adidas fan base to enjoy early access to products and special events.

Now about 10,000 Creators Club members will have an opportunity to become sellers and share their love of Adidas product. Sellers will receive a six percent commission from each sale, with an option to donate to Girls on the Run, an Adidas partner organization dedicated to helping young women reach their full potential. Chris Murphy, Adidas’ senior director of digital activation, said to Fast Company, “If you think about where our consumers go to get advice or ideas, it’s their friends, it’s sneakerheads, it’s people in their social sphere already, so why not let those people sell on our behalf?”

Celebrating the Culture

Also in August, Foot Locker announced a “We Live Sneakers” digital campaign in conjunction with the launch of Nike’s “Evolution of the Swoosh” shoe and apparel collection. Content for “We Live Sneakers,” which rolled out online and on Foot Locker social platforms, is meant to resonate with die-hard sneaker fans of all ages. As Patrick Walsh, Foot Locker’s vice president of marketing, North America, explained to Total Retail, “We want to authentically connect with those who have made Foot Locker a part of their sneaker-obsessed journey. ‘We Live Sneakers’ is a glimpse at what it means to be a sneakerhead, and the ways in which it impacts the most meaningful moments of everyday life.”

The campaign underlines the fundamental respect Foot Locker holds for its sneaker fans. As Walsh notes, “Sneakerheads are . . . very well-informed consumers and have a variety of interests, including art, music, photography, sports, etc. . . . Foot Locker strives to be that intersection between sneakers and all of their other passion points, as well as serve and empower sneaker culture and all of its members.” By partnering with Nike, Foot Locker hopes to create a win/win scenario in which both brands attract attention and engagement.

Providing an Experience

This isn’t the first time Foot Locker and Nike have teamed up. In 2018, sneakerheads joined Foot Locker’s first “The Hunt” augmented reality (AR) scavenger hunt. Players ranged across Los Angeles, smartphones in hand, unlocking geo-targeted AR clues in a bid to be among the first to acquire Nike’s limited-edition LeBron 16 King “Court Purple” sneakers. The game, which involved the “collection” of objects in AR, and completion of three game levels, began at 11:00 p.m. local time after the end of the Los Angeles Lakers’s first home game of the NBA season. Completing all three game levels unlocked an access card to acquire the shoes. The treasure hunt, which imparted a fresh, fun vibe to the sneaker release, underscored a key role that an experience can play in the consumer process. As Ron Faris, GM of Nike’s NYC digital studio and the SNKRS app, shared with Highsnobiety, “For many of the most fanatical sneakerheads, how they cop the shoe is almost as important as the shoe itself.”

What Advertisers Should Do

The lessons here are clear. When reaching out to your ideal demographic, don’t forget to:

  • Tap into a group’s passion and make it work for you—even as you empower individuals to benefit financially or, as in the case of the Girls on the Run donations, do good. It’s especially instructive that Adidas empowered sneakerheads to become social sellers. You don’t need to use a native app to do so; consider platforms such as Instagram depending on where your audience likes to hang out.
  • Respect and celebrate your audience. Tell their story and connect with their passion points in authentic ways. When you do those things, you turn customers into loyal tribes.
  • Leverage technology to provide an experience that will resonate along with your brand. The Foot Locker AR experience tapped into sneakerheads’ love of sports and play. Foot Locker did not apply AR just because it’s a cool technology; Foot Locker understood that AR when used as a game would engage sneakerheads specifically.

Contact True Interactive

Eager to make your brand more relevant with digital advertising? We can help.

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