UK leads the way as half of all media spend goes digital in 2015, but what are the implications for advertisers on mobile?

Blis news from around the world.

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

UK leads the way as half of all media spend goes digital in 2015, but what are the implications for advertisers on mobile?
Andrew Darling

This year the UK will become the first country in the world where half of all advertising spend goes on digital media, according to eMarketer’s recent findings. That’s an incredible achievement and highlights the UK’s place as one of the world’s leading and most dynamic digital economies.

Just over £16.2bn will be spent on all forms of advertising in the UK this year, including TV, newspapers, outdoor, radio, online and on mobiles and tablets. Digital advertising is expected to grow by 12 percent in 2015 to £8.1bn, making the UK the first country in which £1 in every £2 will go on digital media.

And of course it is the rapid adoption of mobile advertising that is driving this fast pace of change within the UK’s historically strong advertising sector. Indeed with UK smartphone penetration now heading north of 81 percent, and with more than 50% percent of all internet traffic coming from mobile devices, the UK is set to play a major role for years to come in shaping global digital advertising across the landscape of creative, data analytics and advertising technologies.

Looking to 2015/15, UK mobile advertising is forecast to attract twice the investment as TV. Mobile has become the screen that consumers spend the most time with so it is no surprise that advertising spend is following.

Global trend

Of course the UK advertising market is significantly smaller than the US advertising market which still remains dominated by TV – in this case the smaller UK market means it is more open to innovation and the adoption of new channels and technologies to reach increasingly fragmented audiences.

Globally, digital accounts for 29.6 percent and about 31 percent in the US. The comparison between the US and UK is interesting in demonstrating how quickly the UK and its traditionally strong advertising industry has embraced online advertising and rapidly adopted mobile advertising. This combined with the UK’s very high penetration of smartphones – which account for 81 percent of mobile devices – makes it a hotbed for digital advertising.

The vast majority of the growth is coming from the UK’s ever-deepening relationship with its portable devices like smartphones and tablets. Within the overall digital category, ad spend on mobile devices will rise 45 percent this year to £3.3bn.

Mobile first

For advertisers, this represents a considerable opportunity for brand and performance digital marketing on mobile screens. But agencies need to pick their mobile adtech and big data partners carefully.

At Blis, we think that mobile has already become our default ‘first screen’. It is the channel that provides advertisers location and content behavioural data from which to hone audience insights and greater accuracy when targeting consumers.

As technology advances, people change with it. According to Forrester’s Report: Untangle the Mobile Advertising Vendor Landscape, published last December, 81 percent of U.S. online adults with smartphones, access the internet through their mobile device at least once a day. It has become more important than ever for advertisers to reach their target audience, on-the-move, in real-world locations.

Do the data right

To do this, richer, multi-layered sets of data are required to provide information on location, history, demographics and other information sources that enable advertisers to serve the right ad, to the right audience, at the right time.

However, agencies and advertisers must be clear about their adtech partner strategies for brand and performance marketing on mobile – not all adtech companies are the same as the Forrester report makes clear.

We believe similar people, go to similar places and are likely to have similar attitudes to specific advertisements. To achieve smart insights, it is important to gather the right information. Location data is very powerful, once refined – it is crucial in understanding, segmenting, contextualising, and predicting customer behaviour. But agency adtech partners must know how to process this raw data to transform it into relevant, ‘smart’ information.

Navigating the adtech landscape

In order to understand an adtech provider’s core capabilities, marketers must find out how their mobile and tech capabilities were built. There are numerous providers that specialise in desktop that have moved into mobile. But their multiplication has made it difficult for marketers to understand who offers what, and select the best vendor for their mobile marketing campaigns.

While many providers have transitioned into mobile by simply adding mobile inventory rather than mobile-optimising their services, other providers have ‘emerged’, by being built from the ground up, mobile-first.

It is very difficult for agencies to verify in detail what their adtech provider’s technology can actually do so they are operating largely on faith. Lots of people who sell adtech solutions simply choose to just ‘rubbish’ their competitor’s offerings. Tactics like these are extremely unprofessional and erode trust in the market. Fraud is being committed, however, and some companies are telling agencies that they are buying programmatically when in fact they are buying manually off networks by phone.

Agencies are starting to recruit tech people who understand the adtech landscape better, but in reality, it’s not the agency’s job to authenticate technology – they should just be applying it.

Adtech providers should be open about their technology claims. They should let agencies come in and see platforms working, meet the engineering teams and show them IP patents and R&D budgets filed with HMRC. It’s a fast-moving world and there’s a lot of innovation going on – we need to help agencies cut through the misinformation and show them we are doing it right for them.

Read original article in The Drum

Andrew Darling is Communications Director at Blis. He is responsible for Blis’ global communications and PR activities, as well as marketing operations in APAC. Andrew is a seasoned tech marketing and communications expert, Chair of the IAB SG Mobile Committee and former Telecoms, Media and Technology journalist.

Leave a comment

Most recent blog posts
Retailers’ Golden Ticket to Reviving Brick and Mortar Stores

Article

Retailers’ Golden Ticket to Reviving Brick and Mortar Stores

Interested in understanding how to connect mobile experiences to physical stores? Or how mobile can be the extension of a retailer’s store? Maybe you’ve wondered about the new Cost-Per-Visit metric? Look no further. Blis’ location data experts will be answering these questions on a weekly basis over the next few months in our ‘Retail Series’ which aims to equip retail marketers with the right insights and top tips to stay ahead of the game.

Following its decision to buy e-commerce company Jet.com last year, Walmart recently agreed to acquire Bonobos, a retailer with a strong online presence and generous shipping policies. If these moves weren’t sign enough that the physical and digital retail worlds are merging, Amazon’s acquisition of Whole Foods is the ultimate wake-up call.

Retailers everywhere are realizing that while brick and mortar stores are still critical, they’ll need a strong digital strategy to keep them filled with happy customers. Mobile devices are retailers’ golden ticket to connecting with consumers and reviving in-store shopping.

Understanding Consumers though Mobile

Whether they are going to work or going shopping, consumers carry their phones with them wherever they go. As a result, mobile devices provide retailers with a constant stream of valuable consumer insights. GPS and Wi-Fi data can tell retailers, for instance, whether a consumer is at a desktop at work, connected to Wi-Fi at home, or walking past a retailer’s store.

Beyond real-time location data, retailers can use historical location data to understand a consumer’s habits. For example, some consumers might visit a luxury jewelry brand on Fifth Avenue just to browse, even if they have no intention (or monetary means!) of buying. Thus, for that specific retailer, in-store visits may not indicate ideal customers. Instead, that luxury retailer can look at historical location data to identify their ideal consumers: perhaps individuals who frequently stay at the Four Seasons Hotel or regularly check in to exclusive country clubs.

But retailers shouldn’t rely on mobile data alone. By layering mobile insights with other valuable sources of data, advertisers can gain a holistic picture of their perfect audiences. Data collected from laptops, for instance, can reveal browsing histories and online shopping patterns; however, consumers won’t be opening up their laptops while shopping in stores. The trick is for retailers to match the data across devices to unique mobile device IDs. Only then will they gain a more holistic understanding of consumers and will be able to target or retarget them with products they are likely to go buy.

Driving Foot Traffic Creatively

Once they’ve gotten a clear and thorough understanding of their ideal audiences, how can retailers use mobile devices to drive foot traffic? Proximity targeting—delivering ads to consumers when they come within a certain distance of a store location—is a common approach. Retailers can maximize the power of proximity targeting by crafting unique and imaginative creatives.

For instance, advertisers can deliver ads to shoppers already in the area to tell them about an in-store sale, or offer them a coupon they can only redeem in person. Retailers can also deliver ads that feature a handy map telling consumers how to find their store.

Sometimes, targeting consumers when they are walking by a store may be a little too late. A QSR wanting to boost its 10 am breakfast crowd, for instance, may want to target consumers when they wake up around 7a and begin planning their day. Otherwise, the consumer has most likely already made their breakfast choice.

While there is no one-size-fits-all solution for retailers looking to connect with consumers and drive in-store sales, a strong mobile strategy is key. As the digital and physical worlds continue to blend, retailers must harness the insights and capabilities of mobile to reach their unique brand objectives.

Tune in next week to read all about how mobile is fast becoming the extension of a retailer’s store.

Read more

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

© Blis 2017 | Registration Number: 06455773 | Privacy