Blis | Allocate Your 2018 Marketing Budget for Greater ROI

Blis news from around the world.

Keep up to date with our latest press releases, market insights and media coverage.

Allocate Your 2018 Marketing Budget for Greater ROI
Blis

In 2017, large businesses reported increases of over 50% to their media marketing budgets, according to a study by TargetMarketing. Now, brands are assessing the success of the past year’s allocations and making difficult decisions about how to generate greater returns in 2018.

They may also be shifting next year’s ad dollars even more than usual. Digital media spend is on the rise, but brands have already begun emphasizing high-quality experiences—both online and in stores—over ad volume in their budget allocations.

How can brands make sure they are putting quality over quantity and making the most of their annual marketing spend by learning from 2017 tech advancements. We explain three approaches brands can take to allocate their 2018 marketing budgets in ways that will bring about greater conversions and returns learning from and optimizing from 2017.

Integrate Campaigns into a Holistic Marketing Strategy

Sponsoring an event is often a go-to tactic for advertisers looking to raise brand awareness among huge crowds at sports games, festivals, and other events. But are brands that pour money into sponsorships making the most of their investment? A sports apparel brand can plaster its logo all over a stadium, but how do they know consumers are taking the message to heart?

Brands can strengthen the impact of their sponsorships by engaging with attendees on a personal level once they’ve gone home. First, brands can identify and keep track of audiences that were exposed to their ads with a geo-fence: they can identify unique device IDs based on 3G and 4G GPS data or Wi-Fi IP addresses within the event grounds. Then, with an integrated follow-up strategy, advertisers can capitalize on their association with positive emotions at an event by serving ads to these attendees after they’ve left.

But how, when, and where should they follow up? In order to engage consumers when they’re most likely to be receptive, advertisers should serve ads according to where they are and what they’re doing throughout the day. For example, the sports apparel brand can serve a banner ad to a man catching up on the news while walking to work. Later that evening when he’s second screening—watching a football game on TV while reading the highlights on his iPad—the brand can reach out with a 30-second video ad.

Creating “Phy-gital” Experiences

Brands invest a lot of money into ads designed to increase foot traffic. But once consumers have made it to the store, the job of the advertiser is far from over. By investing a few more dollars to enhance the customer experience or support consumers browsing merchandise, brands can significantly boost conversion rates.

Take the restaurant chain Chili’s as an example. It has adopted a new “digital curbside” initiative that relies on geofencing. A customer orders his meal online, and when he pulls into the parking lot, a Chili’s employee delivers the food to the car.

Thanks to beacon technology, brands can find out more than just when consumers drive into the parking lot; they can determine exactly when consumers walk into their stores and which aisles they’re shopping in—information that’s enabling advertisers to create captivating and personalized digital in-store experiences.

Nordstrom, for instance, is investing in new ways to merge the physical and digital worlds in their brick and mortar stores. The brand recently launched a new feature that enables customers to reserve apparel online and try it on in store. Nordstrom has also given shoppers the option of scanning products in-store and completing their purchases online. Similarly, Macy’s stores around the world are now equipped with beacon sensors that send push notifications to shoppers, telling them about new deals or helping them navigate their way through the store.

Seize the Moment

No matter how carefully marketers define their annual budgets, they are always likely to confront curveballs throughout the year. We recommend that brands reserve 10% of their budgets to be able to innovate and capitalize on unforeseen opportunities.

What’s the best way for brands to prepare for the unexpected? Investing in moment marketing provides one creative solution, enabling brands to respond to heightened interest around specific, often unanticipated, events. Using location data, brands can automatically tailor their ads to particular “moments” such as changes in the weather, significant local incidents, or when key words are trending on social media.

The yogurt brand Dannon, for instance, used moment marketing to reach out to consumers during “bad day moments.” When it was raining or when consumers were caught in transit delays, the brand delivered location-powered ads designed to bring some humor and levity to the situation. The ads turned out to be some of the most creative and engaging all year, resulting in a 218% increase in brand mentions.

Brands can strengthen their moment marketing campaigns and reach hyper-targeted audiences at scale by coupling location data with insights from other third-party data providers. For example, Dannon could harness insights into consumer purchase histories to target only those who have purchased yogurt in the past. That way, advertisers will see higher conversation rates with less wasted spend.

When brands give themselves ample creative and financial legroom, they’ll be not only reactive but also proactive when responding to surprising events and opportunities.

To guarantee maximum returns on their investments, advertisers will need to prepare their 2018 budgets in ways that prioritize customer interaction and integrate their campaigns into a coherent marketing strategy. All the while, they can ensure they’re making the most of their marketing dollars by measuring impact throughout the new year.

Tags: , , ,

Blis Blis
Most recent blog posts
3 Ways Retailers Can Use Mobile for Effective One-to-one Marketing

Article

3 Ways Retailers Can Use Mobile for Effective One-to-one...

Today, mobile devices are like mini retail stores we carry around in our pockets: places where consumers can browse merchandise or place orders almost instantly.

But mobile devices also give consumers something they can’t get in stores: personalized marketing. Collecting data like shopping histories and browsing patterns, mmobile devices provide retailers with detailed insight into individual consumers and a means of communicating with them directly.

How can retailers use mobile insights and capabilities to craft effective, one-to-one messaging?

1. Get personal.

Today, consumers want—and expect—ads to speak directly to them. In fact, 74% of customers feel frustrated when their online experiences aren’t personalized.

The easiest way for retailers to personalize content is by harnessing their first-party data. If a customer purchases a dress online, the brand can use what they know about her (her fashion interests, browsing history and email address) to customize subsequent content. For example, the brand can serve an ad via email that suggests a pair of shoes to go along with the new dress.

With CRM data, the retailer can see what the woman bought online, but do they know what she’s purchased elsewhere? Or what she does when she’s not shopping? This is where location data comes in. Retailers that layer location-based insights on to other sources of data can get to know where and when consumers shop at brick and mortar stores. They can also identify other behavioral patterns, including which day of the week and time of day they like to go shopping—data can enables greater levels of personalization.

Let’s say a CPG brand wants to reach out to a previous customer who hasn’t been seen in store lately. The marketers can use their knowledge of the consumer’s daily commute to deliver the ad just before he leaves work, suggesting he stop by on his way home. They may even offer him a discount on the product he previously purchased.

2. Market to individuals, not devices.

Once retailer marketers have identified their ideal audiences on mobile, they shouldn’t see phones as the only means of communication. Consumers own an average of 3.6 connected devices, so retailers should communicate with consumers across the devices they use, including tablets, laptops, desktops and addressable TV.

However, if a retailer sees a user reading political news on the tablet all day but watching cartoons in the evening, it might not be the same same person. With families and partners sharing devices at home, marketers need to make sure they are constructing nuanced consumer profiles across devices in order to reach out to individuals, not just devices.

3. Don’t be creepy.

Personalized, cross-device marketing is on the rise in part because consumers are increasingly willing to disclose their data to retailers. After all, purchase histories and location data are essential for useful or interesting ads.

But how retailers use that data is key. Consumers want to feel understood, but they don’t want to feel like ads are invasive or drawing on data that’s simply too personal and private. Marketers need to make sure they aren’t crossing any personal boundaries or making consumers feel uncomfortable.

If marketers want to turn heads or, more importantly, turn consumers into buyers, they’ll need to do more than blast out generic ads to the masses. When retailers personalize ads with these three tips, they’ll see huge improvements in campaign performance.

But how, exactly, do they measure these improvements? Find out next week when we assess the best metrics for retailers.

Read more

Embracing the Retailer’s Dream Metric: Cost Per Visit

Article

Embracing the Retailer’s Dream Metric: Cost Per Visit

The twentieth-century American engineer and statistician W. Edwards Deming once said, “Just because you can measure everything, doesn’t mean that you should.”

This applies to retailer struggles today as marketing executives need to decide what they should measure and how. Do they care about impressions, views or click-through rates? And once they figure that out, how can they make sure their ad dollars are really working? The Partnership predicts that ad fraud will cost brands over $16 billion this year alone, while Infectious Media suggests that over half of all digital ads aren’t seen at all.

Fortunately for retailers, there’s a new metric in town—one designed to eliminate waste and increase sales. With a cost-per-visit (CPV) model, retailers pay only when a consumer sees an ad and visits a specific location. Here are four ways retailers are benefiting from this cutting-edge new metric.

1) Increased Foot Traffic

With the National Retail Federation predicting eight to 12 percent e-commerce growth this year alone, no one can deny the rapid rise of online sales. However, 85 percent of consumers still prefer to shop in brick-and-mortar stores, where 94 percent of all sales are generated. That’s why it’s vital for retailers to keep their physical stores alive and continue to enhance their in-store experiences.

With the explicit goal of bringing visitors into physical store locations, CPV is a metric for retailers wanting to increase foot traffic—and pay only for successful conversions. While there are many ways to boost in-store visits, today’s leading location data solutions use predictive location modeling. With Blis Futures, we choose to charge on a CPV-basis because we are completely confident in this approach.

2) Greater In-store Sales

Driving consumers into brick-and-mortar locations may also encourage consumers to buy more than they anticipated. It gives retailers the opportunity to upsell consumers so they need to make sure they clearly advertise their promotional pricing, point-of-purchase displays and loyalty programs. Once you have a potential customer in the store, you can push tailored messaging in real-time and create personalized promotions. As anyone that has ever been into a Target retail location can attest – you may go in for one specific item but end up unable to leave the store for less than $100! So only paying when a consumer sees an ad and then visits a physical location reaps multiples rewards for a marketer.

3) Branding Opportunities

When retailers buy ads on a cost-per-visit basis, they don’t pay if the consumer sees the ad but doesn’t come into the store. That means the retailer also benefits from ad views and branding. In fact, a consumer may see the ad and make a purchase online rather than in-store, but the marketer still pays nothing for that conversion. At Blis, we are willing to take that risk and allow marketers “free” branding messages. Our confidence in the technology behind our CPV metric allows us to think of marketers first.

4) Risk-free Investing

CPV transfers the risk from buyer to partner, so retailers don’t have to worry about wasted ad spend: They’re making a completely risk-free investment. With free branding and zero downside, retailers have nothing to lose.

When Blis became one of the first tech partners to offer the CPV model earlier this year, we sent a critical message to both retailers and the wider industry: We’re ushering in a new era of transparency and accountability in advertising.

Check back again next week when we switch gears to discuss how retailers can use mobile to boost engagement, retention and acquisition.

Read more

Closing the Retailer Purchase Loop: Solving the Challenge of Attribution

Article

Closing the Retailer Purchase Loop: Solving the Challenge of...

You’re on your way to work when you pass a billboard featuring Nike’s newest running shoe. That reminds you: you just signed up for a half marathon, so you’ll need some new gear. You start googling top-of-the-line running shoes on your phone. You forget about the race until days later when looking at Facebook on your laptop, and there they are: the same shoes that caught your eye. Still, you won’t purchase them until you try them on. So what a pleasant surprise when, on your walk home, a banner ad appears across your phone: “You’re 3 minutes from a Nike store,” it says. Why not stop by?

If you go into that store and purchase those shoes, which ad was it that led to the conversion? Was it the original billboard, the social media ad, or the location-based banner? Perhaps a perfect combination of all three?

These questions reflect the challenges every marketer is currently facing when it comes to attribution. Today, a typical path to purchase is no longer a straight line to the point of sale. It looks more like a latticework of ads both online and offline, on our devices or in our neighborhoods.

Yet despite this added complexity, brands can begin to solve the mystery of attribution and determine the value of each marketing touchpoint. They just need to follow the footsteps.

Understanding Footsteps to Purchase

Brands can get a better understanding of which campaigns are boosting their ROI by taking a look at how digital ads directly relate to foot traffic.

First, advertisers can conduct an A/B test to determine which ads are bringing people into their brick-and-mortar retailers. By comparing how many devices were seen in store from an exposed group (devices that received an ad) to a control group (devices that didn’t receive an ad), brands can figure out what’s working and how well. This is the kind of study we conducted on a series of CPG brands earlier this year—where we found an astonishing 47 percent uplift in foot traffic for the exposed group.

Location data can also reveal more than just how many devices made it into stores. It can also tell advertisers the average time it takes for someone to enter a store after seeing an ad, or which locations are performing best. Brands can also layer this data with purchase histories and sales data for even more insightful stats and figures into how their customers are responding to ads.

So once brands have uncovered all these clues into what’s driving conversions and how, what do they do with it all?

Step Up Your Campaigns

Brands don’t strive for accurate attribution just for the sake of it. They want to know what’s causing conversions so they can do more of it—and cut out what might not be working at all.

An energy drink brand, for example, can use data about foot traffic and sales to make sure the next iteration of their campaign performs even better. Let’s say the brand discovers that people are 50 percent more likely to go into a store that stocks the energy drink when they receive an ad within 200 feet of the retailer. Rather than targeting everyone within 500 feet of the retailer, the brand can eliminate waste by just reaching out to those within a much smaller radius.

What if advertisers discover that no matter what distance, more people seem to be purchasing the energy drink from Walgreens than CVS? Perhaps next time, they can put a greater share of their ad budget into targeting those near Walgreens.

By solving some of the mysteries around attribution by finding which campaigns are driving sales, advertisers can continuously optimize their campaigns. And that means less waste and a greater bang for every marketing buck.

Read more

© Blis 2017 | Registration Number: 06455773 | Privacy