tag:econsultancy.com,2008:/topics/advertising Latest Advertising content from Econsultancy 2017-09-15T10:00:00+01:00 tag:econsultancy.com,2008:BlogPost/69422 2017-09-15T10:00:00+01:00 2017-09-15T10:00:00+01:00 Four brands that used student ambassadors to generate buzz on campus Nikki Gilliland <p>An increasing number of brands are looking to students to become ambassadors, with the aim of boosting awareness and driving engagement in university campuses and beyond.</p> <p>So, how do they do it, and what are the benefits? Here’s a bit more on the subject.</p> <h3>A lucrative market</h3> <p>Despite the majority of students relying on loans to get through university, research suggests that many will still spend their money on <a href="http://www.telegraph.co.uk/education/2017/01/05/nearly-third-students-waste-student-loans-shopping-sprees-drinking/" target="_blank">non-essential items</a> such as clothing and drinking. </p> <p>For brands, this presents a clear opportunity, especially considering that many students will be living away from home for the first time - also becoming financially independent, and forging brand affinities in categories such as finance, travel, and lifestyle.</p> <p>So, with many brands in the UK focusing on sales – promoting discounts and deals to capture student attention – many are failing to recognise that they could be building affinity based on defining moments. This means tapping into university ‘firsts’ such as learning how to cook, doing laundry, setting up household utilities, and so on. </p> <p>Meanwhile, brands also forget that students care about more than just money. According to a survey by Chegg, 88% of students said they are more responsive to brands that give back to the community, reflecting the fact that brands need to do more than just overtly sell their product.</p> <h3>The power of influence</h3> <p>According to <a href="http://searchengineland.com/88-consumers-trust-online-reviews-much-personal-recommendations-195803" target="_blank">research</a>, 88% of consumers now trust the opinions of influencers as much as they do their friends. Similarly, <a href="https://www.econsultancy.com/blog/69161-micro-influencers-how-to-find-the-right-fit-for-your-brand">micro-influencers</a> – who have a smaller reach but a more authentic reputation – can generate four times the engagement of larger influencers.</p> <p>Why is this important? Essentially, brands are now recruiting students to act as micro-influencers in universities. Instead of faceless ads, students are advertising to other students, effectively building advocacy for the brand or its products on a more personal level.</p> <p>In this sense, brand ambassadors can also act as <a href="https://econsultancy.com/blog/66569-five-ways-to-use-social-proof-online" target="_blank">social proof</a>. This means that if a student sees one or a group of influential peers wearing a particular brand, there's a chance that they’ll want to follow the crowd. The hope is that this could also create a snowball effect, with students going home and influencing friends and family away from their university circle.</p> <h3>Gaining insight</h3> <p>Student ambassadors can also act as eyes and ears on the ground, gathering insight about students on behalf of a company – i.e. what they want from a brand as well as their general perceptions and opinions.</p> <p>One popular ambassador activity is to hand out product samples, which can be effective for gaining instant feedback. This one-to-one communication can enable brands to gather more meaningful insight. </p> <p>Another benefit is that student ambassadors will sound exactly like the people they’re trying to target, taking away the danger of <a href="https://www.econsultancy.com/blog/67886-word-on-the-street-four-tips-for-using-slang-in-marketing" target="_blank">cringey brand communications</a>.</p> <h3>Long-term loyalty</h3> <p>Another reason to use this strategy is the potential to instil long-term loyalty in student consumers. </p> <p>First, ambassadors themselves are likely to stay brand-loyal long after they leave university – this is because they tend to feel part of the businesses that they are representing. </p> <p>In turn, they can also help to generate long-term loyalty in others. Again, this is down to the fact that students tend to be forming opinions and brand affinities for the first time. So by creating relationships with students at such an important and influential stage in their life, brands can increase the likelihood of sustaining affinity until later on in life, or perhaps even benefit from sentimentality about student days.</p> <p>So which brands have succeeded with student ambassadors? Here are a few examples.</p> <h3>1. American Eagle Outfitters</h3> <p>US retailer American Eagle previously enlisted ambassadors to help new students settle into their dorms at universities across the US. Dubbed the ‘Move-In Crew’, the ambassadors were there to carry and unload boxes, but also took the opportunity to hand out special American Eagle merchandise such as water bottles, pens, and coupons. </p> <p>By doing a good deed, the idea was that American Eagle would stick in the minds of new students, also promoting it as more than just a corporate brand.</p> <p><img src="https://assets.econsultancy.com/images/0008/8973/AE.JPG" alt="" width="600" height="453"></p> <h3>2. Nestlé </h3> <p>As well as turning students into customers, brands also look to universities to target potential future employees. </p> <p>A few years ago, Nestlé was struggling to attract talent from US universities, specifically in the Midwest. As a result, it used an ambassador programme to generate buzz about Nestlé careers, using a combination of on-campus promotions and events to do so. </p> <p>Nestlé ‘street teams’ distributed Nestlé chocolates along with event information at business and engineering schools, simultaneously promoting happy hour nights and the company on social media.</p> <p>The initiative was a success, resulting in 600 student attendees per event and a 64% increase in annual applications to Nestlé jobs compared to the previous year.</p> <p><img src="https://assets.econsultancy.com/images/0008/8974/Nestle_Academy.JPG" alt="" width="650" height="512"></p> <h3>3. Lucozade</h3> <p>Last year, Lucozade launched its first ever student ambassador campaign to help increase sales of its new Lucozade Zero drink.</p> <p>Recruiting students to be the face of the brand on university campuses across the UK, ambassadors were put in charge of ‘brand stations’, whereby students could taste samples of Lucozade and get involved with a ‘Hit Zero’ game.</p> <p>With 66 events held, more than 100,000 samples handed out, and 330 game winners, it was a successful example of how to increase exposure and build buzz about a new product.</p> <p><img src="https://assets.econsultancy.com/images/0008/8971/Lucozade_2.JPG" alt="" width="760" height="415"></p> <h3>4. Tinder</h3> <p>In its early days, <a href="https://www.econsultancy.com/blog/68511-how-tinder-is-encouraging-millennials-to-make-more-meaningful-connections" target="_blank">Tinder</a> took a top-down approach to marketing, recruiting influential college ambassadors to promote the app to friends and fellow students. </p> <p>In fact, Tinder was first launched at the University of Southern California with a birthday party thrown for a co-founder’s brother and his friends (who were students at the time). In order to attend, guests had to download the app – a stipulation that resulted in the number of uses increasing to over 4,000 by the end of the week.</p> <p>From there, Tinder continued to capitalise on the highly social environment of university, recruiting ambassadors to continue promoting the app, often during fraternity parties and big college events.</p> <p><img src="https://assets.econsultancy.com/images/0008/8972/Tinder.JPG" alt="" width="760" height="392"></p> <p><strong><em>Related reading:</em></strong></p> <ul> <li><em><a href="https://econsultancy.com/blog/67550-student-com-the-website-set-to-revolutionise-student-accommodation/">Student.com: the website set to revolutionise student accommodation</a></em></li> <li><em><a href="https://econsultancy.com/blog/67550-student-com-the-website-set-to-revolutionise-student-accommodation/">How ASOS targeted students via ‘Blank Canvas’ competition</a></em></li> </ul> tag:econsultancy.com,2008:BlogPost/69418 2017-09-14T14:26:39+01:00 2017-09-14T14:26:39+01:00 The FTC begins cracking down on influencers who violate its rules Patricio Robles <p>Last week, the FTC <a href="https://www.ftc.gov/news-events/press-releases/2017/09/csgo-lotto-owners-settle-ftcs-first-ever-complaint-against">announced</a> that two influencers active on YouTube, <a href="https://www.econsultancy.com/blog/69392-amazon-turns-twitch-into-an-influencer-sales-platform">Twitch</a>, Twitter and Facebook had settled charges that they "deceptively endorsed the online gambling service CSGO Lotto...while failing to disclose they jointly owned the company."</p> <p>In addition, the FTC says that the influencers, Trevor 'TmarTn' Martin and Thomas 'Syndicate' Cassell, paid other influencers to promote CSGO Lotto without requiring them to disclose that they were paid.</p> <h3>A notable first</h3> <p>This is not the first time that the FTC has taken action over influencer marketing rule violations – it previously won a settlement with Lord &amp; Taylor over the retailer's Instagram influencer marketing efforts – but it is the first time that the FTC has gone after influencers themselves for violations.</p> <p>"Consumers need to know when social media influencers are being paid or have any other material connection to the brands endorsed in their posts," FTC acting-chairman Maureen Ohlhausen stated in a press release. "This action, the FTC's first against individual influencers, should send a message that such connections must be clearly disclosed so consumers can make informed purchasing decisions."</p> <p>While this settlement is somewhat unique in that the influencers targeted owned the service they were promoting without disclosure, the FTC appears to be making it clear that it is now going to more aggressively pursue influencers for violations of its rule. Indeed, in its press release announcing this settlement, the FTC revealed that it has sent warning letters to 21 of the 90 influencers it contacted in April.</p> <p>"The warning letters cite specific social media posts of concern to staff and provide details on why they may not be in compliance with the FTC Act as explained in the Commission’s Endorsement Guides," the press release explained. "For example, some of the letters point out that tagging a brand in an Instagram picture is an endorsement of the brand and requires an appropriate disclosure."</p> <p>One would assume that if any of the 21 influencers the FTC contacted do not respond or don't allay the agency's concerns, new charges could be forthcoming.</p> <h3>A reminder for brands too</h3> <p>On one hand, the FTC's latest enforcement action is good news for brands, as it indicates that the FTC is willing to go after individual influencers and not just brands, who are the bigger financial targets. On the other hand, the FTC's move could signal that the agency is stepping up its enforcement efforts, which means that the entire influencer marketing ecosystem will be under more scrutiny and violations of the FTC's rules will carry with them a greater and greater risk of punishment for both influencers and brands.</p> <p>The good news is that as the FTC ups its enforcement, it is providing more guidance about what influencers and brands need to do to stay on the right side of the rules. For example, the FTC has also announced updates to <a href="https://www.ftc.gov/tips-advice/business-center/guidance/ftcs-endorsement-guides-what-people-are-asking">its enforcement guides</a> which were last updated in 2015.</p> <p>The new information in them covers a number of topics, such as the obligations of foreign influencers, disclosure of free travel and whether disclosures must be made at the beginning of paid posts. It also adds platform-specific disclosure guidelines for Instagram and Snapchat.</p> <p>Among the notable additions:</p> <ul> <li>"Tagging a brand you are wearing [in a photo] is an endorsement of the brand and, just like any other endorsement, could require a disclosure if you have a relationship with that brand."</li> <li>"There is a good chance that consumers won’t notice and understand the significance of the word 'ad' at the end of a hashtag, especially one made up of several words combined like '#coolstylead.' Disclosures need to be easily noticed and understood."</li> <li>"The use of '#ambassador' is ambiguous and confusing. Many consumers are unlikely to know what it means. By contrast, '#XYZ-Ambassador' will likely be more understandable (where XYZ is a brand name). However, even if the language is understandable, a disclosure also must be prominent so it will be noticed and read."</li> <li>"Keep in mind that if your post includes video and you include an audio disclosure, many users of [platforms like Instagram and Snapchat] watch videos without sound. So they won't hear an audio-only disclosure. Obviously, other general disclosure guidance would also apply."</li> </ul> <p><em>For more on this topic, read:</em></p> <ul> <li><a href="https://econsultancy.com/reports/measuring-roi-on-influencer-marketing"><em>Measuring ROI on Influencer Marketing (subscription required)</em></a></li> <li><a href="https://www.econsultancy.com/blog/69209-six-inconvenient-truths-about-influencer-marketing"><em>Six inconvenient truths about influencer marketing</em></a></li> <li><a href="https://econsultancy.com/blog/69196-11-impressive-influencer-marketing-campaigns"><em>11 impressive influencer marketing campaigns</em></a></li> </ul> tag:econsultancy.com,2008:BlogPost/69415 2017-09-12T14:15:00+01:00 2017-09-12T14:15:00+01:00 Five things every company can learn from the Equifax data hack Patricio Robles <p>While companies have been aware of the data breach threat for years now, the unfolding Equifax incident is a stark reminder of just how high the stakes are today. </p> <p>Here are five lessons every company should heed from the Equifax breach.</p> <h3>1. Data is more valuable than ever, and there's more of it than ever</h3> <p>While most companies don't store data as sensitive as a credit bureau like Equifax, companies of all sizes are increasingly collecting more and more data. And for good reason: for the past several years, companies have been told that data is critical to their success in the 21st century.</p> <p>Take the digital advertising market, for example. To win, companies <a href="https://econsultancy.com/blog/66957-resolving-the-customer-identity-challenge-with-first-party-data/">have been upping their efforts to gather and use first-party data</a>.</p> <p>This isn't inherently a bad thing, of course, but as companies store more data, and more detailed data, about their customers and, in many cases, people who aren't even their customers, the risks associated with data breaches increase substantially and that <a href="https://www.econsultancy.com/blog/67668-data-can-be-toxic-here-s-how-companies-should-handle-it">data can be toxic</a>. Even if companies don't store the most sensitive information about their customers, such as Social Security numbers, as digital data proliferates, criminals are becoming more savvy about how data can be exploited and that means companies shouldn't underestimate how the data they store could be used, especially when it is combined with data from other sources.</p> <h3>2. Disclosure of data breaches needs to be made quickly</h3> <p>Equifax reportedly learned that its systems had been breached in late July, so one of the biggest criticisms of the company is that it took over a month to inform the public. While it's understandable that a company might need time to investigate a breach and determine its extent, at the same time, companies need to understand that the public is not going to respond kindly when breaches are not promptly disclosed, especially when the information stolen could be used against them.</p> <p>As a result, unless law enforcement demands otherwise, companies should err on the side of disclosing that they've been breached sooner rather than later.</p> <h3>3. The response cannot be botched</h3> <p>Following a data breach, companies have one chance to make things right to the greatest extent possible. Despite the fact that Equifax knew about a data breach for weeks, its public response to the breach has been roundly criticized.</p> <p>The <a href="https://www.equifaxsecurity2017.com">website</a> the company set up to provide information <a href="https://www.bloomberg.com/news/articles/2017-09-08/consumers-struggle-to-get-answers-from-equifax-after-massive-hack">was plagued with problems</a>, some of them downright embarrassing. The data breach checker that purports to let individuals know if their data was part of the breach <a href="http://www.zdnet.com/article/we-tested-equifax-data-breach-checker-it-is-basically-useless/">doesn't appear to work</a>, and an arbitration clause in a legal agreement for the free monitoring service Equifax is offering to affected consumers <a href="https://www.forbes.com/sites/dianahembree/2017/09/09/consumer-anger-over-equifaxs-ripoff-clause-in-offer-to-security-hack-victims-spurs-policy-change/">was the source of a firestorm that Equifax had to respond to</a>.</p> <p>Put simply, Equifax's response has basically been a textbook case study for <em>how not to respond to a massive data breach </em>and because of this, everything the company does from here forward is going to be met with an even more critical eye from the public and media.</p> <h3>4. The actions of company leadership are going to be scrutinized</h3> <p>Thanks in large part to social media, there's more scrutiny than ever over companies when something goes wrong. In the case of Equifax, it was quickly revealed that three members of Equifax's senior management team <a href="https://www.bloomberg.com/news/articles/2017-09-07/three-equifax-executives-sold-stock-before-revealing-cyber-hack">sold nearly $1.8m worth of shares</a> in the company in the days following the company's discovery of the data breach. </p> <p>According to an Equifax spokesperson, the trio "had no knowledge that an intrusion had occurred at the time," something that some members of the public and media have had a hard time believing, especially given that one of the executives who sold stock was the company's chief financial officer.</p> <p>But even if one accepts the company's claim, it's a reminder to companies that the public scrutiny they will face in the wake of a data breach extends to the actions of company management and therefore, part of the response strategy should take into account the importance of ensuring that the actions of company management following a data breach don't make a bad situation worse. </p> <h3>5. Data breaches are an existential threat</h3> <p>One of the big questions following the Equifax hack is whether or not Equifax will survive. While it might seem preposterous to question whether one of the three major credit bureaus in the US and a company with a market capitalization of over $17bn even after its stock has fallen by over 20% in recent days could go out of business following a data breach, all bets are off because there has arguably never been such a damaging data breach in the world's history.</p> <p>A lawsuit seeking up to $70bn in damages <a href="https://www.bloomberg.com/news/articles/2017-09-08/equifax-sued-over-massive-hack-in-multibillion-dollar-lawsuit">has already been filed</a> and government agencies <a href="https://www.recode.net/2017/9/8/16278030/congress-hearing-massive-equifax-data-breach-hack-security-privacy-data">are circling</a>. Given the nature of this breach and the number of Americans affected, it's hard to see Equifax emerging from this with little more than a financial and regulatory slap on the wrist. And even if Equifax has money left in the bank when all is said and done, it seems likely the company's name will be tarnished for years and possibly even decades to come.</p> <p>Obviously, most businesses don't store the same type and volume of data about consumers as Equifax, but it's not inconceivable that as companies rely more and more heavily on more and more detailed data, the cost of data breaches could increase to the point where businesses, especially small and mid-sized companies, routinely don't survive them.</p> tag:econsultancy.com,2008:BlogPost/69410 2017-09-11T14:01:00+01:00 2017-09-11T14:01:00+01:00 Verizon wants customers to give up their data for targeted ads, and it's willing to pay Patricio Robles <p>As The Wall Street Journal <a href="https://www.wsj.com/articles/verizon-wants-to-build-an-advertising-juggernaut-it-needs-your-data-first-1504603801">detailed</a> on Monday, Verizon has launched a new program called <a href="https://www.verizonwireless.com/rewards/verizon-up/">Verizon Up</a> that offers users rewards like free music, Uber rides, sports gear, coffee and discounts on new phones. There are also "amazing once-in-a-lifetime experiences and front-row tickets" to concerts, movies and sporting events.</p> <p><img src="https://assets.econsultancy.com/images/0008/8822/verizonupreward.png" alt="" width="517" height="368"></p> <p>Verizon boasts that "no points or levels [are] required" in its new rewards program. For every $300 spent on a Verizon Wireless monthly bill, customers receive one credit.</p> <p>Oh, and there's one more thing: to participate in Verizon Up, customers have to opt into Verizon Selects, a program that "uses information about your web browsing, app usage, device location, use of Verizon services and other information about you (such as your postal/email addresses, demographics, and interests) and shares information with Oath (formed by the combination of AOL and Yahoo)" to "personalize your experiences and make advertising you see more useful across the devices and services you use."</p> <p>In other words, to score rewards, Verizon customers have to allow Verizon to use the data it has about them to deliver targeted ads.</p> <h3>A new kind of truth in advertising?</h3> <p>Naturally, Verizon Up is going to have its critics, but the company believes it is actually being more transparent and honest with its customers than many other digital advertising players are with their users.</p> <p>Verizon's CMO, Diego Scotti, pointed to Google and Facebook, telling the Wall Street Journal, "Some of our competitors, they have exactly the same thing, it's just buried in the terms and conditions of the service. We are not hiding anything."</p> <p>It's not a bad point.</p> <p><a href="https://www.econsultancy.com/blog/69381-the-google-facebook-duopoly-extends-to-mobile-apps-what-can-marketers-do">Google and Facebook</a> are under increasing scrutiny as their digital ad dominance grows. Both companies track users across the web and across devices. And in most cases, average users don't know when they're being tracked or how to control the data collected even when they have the ability to. In July, a judge in California dismissed a lawsuit against Facebook over its tracking of users even when logged out. Users don't have an expectation of privacy, the judge ruled.</p> <p>Google and Facebook, of course, offer a lot of value to users and the argument is that users allow these companies to collect data and advertise to them as payment for their otherwise free services. "If you're not paying for it, you're not the customer, you're the product" the saying goes.</p> <p>For years, some argued that users should be paid for their data as part of a so-called information market. As Vasant Dhar, a professor at New York University's Stern School of Business has <a href="http://money.cnn.com/2012/10/18/technology/social/facebook-should-pay-you/index.html">argued</a>, Facebook in particular would benefit by being more transparent given the amount and type of data it collects. "If users aren't making a conscious choice about what happens with their data, they end up feeling violated," he stated.</p> <p>But despite years of this kind of talk, there has been literally no movement on the part of advertising giants to compensate their users for their data. Even though its rewards are tied to dollar spend, Verizon Up is arguably one of the first major programs in which a major company is seeking to get customers to voluntarily give up their data for advertising purposes by giving them something of value in return other than access to a free service.</p> <p>Will it work? And will Verizon refuse to take and use valuable data from customers who don't sign up for Verizon Up?</p> <p>How those questions are answered could very well determine if a different future is possible for the digital advertising market.</p> tag:econsultancy.com,2008:BlogPost/69396 2017-09-11T02:00:00+01:00 2017-09-11T02:00:00+01:00 Three ways B2B marketers can drive more traffic to their sites Jeff Rajeck <p>All of these suggestions, though, are of little use if the B2B marketer suffers from low traffic volume to their site.</p> <p>To help out, B2B marketing specialist Anol Bhattacharya spoke about three ways in which B2B marketers could drive more traffic to their site at a recent Econsultancy Digital Intelligence Briefing in Singapore.</p> <p>His tips are summarized below, but first we'd like to invite all B2B marketers in the APAC region to attend <strong>Econsultancy's Masterclass in Lead Generation</strong>, led by Bhattacharya, on the <strong>19th and 20th of October in Singapore</strong>. You can find out more information and <a href="https://econsultancy.com/training/courses/masterclass-in-lead-generation-singapore/dates/3132/">book your spot here</a>.</p> <h3>1. Stop trying to figure out Google's algorithm</h3> <p>There is little doubt that organic search, especially from Google, is one of the best ways for B2B marketers to drive traffic to their site. To make this happen, though, marketers need to get their site to the top of the search engine result page as that is where most clicks occur.</p> <p><img src="https://assets.econsultancy.com/images/0008/8861/google.png" alt="" width="884" height="500"></p> <p>Because appearing high in the search rank is so important, though, marketers have long been scheming about how to 'game' Google's algorithm. Google, naturally, is aware of this and understands that if any old site can trick its search engine then Google users will have a bad experience and search elsewhere.</p> <p>As a result, Google does not offer much information about how to appear high in its results apart from the <a href="https://support.google.com/webmasters/answer/40349?hl=en">vague statement</a> "provide high-quality content on your pages, especially your homepage."</p> <p>Additionally, <strong>the search experience is now different for each user</strong>, so even if a marketer figured out how to appear the top of their own SERP, the search result may be different for the person sitting next to them.</p> <p><img src="https://assets.econsultancy.com/images/0008/8865/ec.jpg" alt="" width="800" height="533"></p> <p>So, Bhattacharya said that instead of trying to reverse engineer Google and find some sort of 'trick',<strong> B2B marketers should use a much more straightforward tactic - focus on finding keywords and key phrases</strong> which are: </p> <ol> <li>relevant to their business,</li> <li>have a reasonably sized search volume, and </li> <li>are in the 'long tail' of search queries. </li> </ol> <p>Then, once marketers have identified a few key terms, they should deliberately include these terms on the homepage and in other relevant content and endeavour to provide the best user experience for someone searching on the term.</p> <p>The difficult part of this tactic, though, is to find search terms which are used often enough to be useful and not too competitive. With some effort and practice, though, brands can rank at the top for organic search results which are relevant to the products and services they offer.</p> <p><img src="https://assets.econsultancy.com/images/0008/8862/b2b.png" alt="" width="800" height="462"></p> <h3>2. Pay attention to six key factors when executing an email campaign</h3> <p>Bhattacharya told attendees that email is another great way for B2B marketers to drive traffic, but that there are six key things that they should be keeping an eye on. </p> <p><strong>First,</strong> <strong>marketers need to maintain email database hygiene</strong>. What this means is that your email list should be regularly reviewed to ensure that you are sending emails to people who still care about your service. If one subscriber hasn't opened your email in a year, then get rid of them as they obviously are not interested in what you are sending.</p> <p><strong>Secondly, marketers also need to pay close attention to subject line</strong>. A well-crafted subject line will result in many more opens than a generic one. Research also indicates that using personalisation will improve open rates for most industries</p> <p><strong>Third,</strong> what you include in your email headings is also an important factor for improving open rates as most email clients include the first line of the email along with the subject line. Avoid out-of-context notices (e.g. "Click to view this email in your web browser") and <strong>try to give people an additional reason to open your email in the first few words.</strong></p> <p><strong>Fourth,</strong> timing of emails often is the difference between a successful campaign and one with low opens and clicks. <strong>Avoid sending email out-of-hours</strong> as mobile email clients allow for people to archive all commercial emails with a single click.  </p> <p>Also Bhattacharya suggested that marketers should avoid sending emails at the beginning, middle (lunch), and end of the day as well as on Monday and Friday.</p> <p><strong>Fifth</strong>, Bhattacharya also discussed a few best practices for body copy. <strong>One of the main mistakes marketers make is to try to include multiple subjects in one email.</strong>  Unless the email is intended to be a broad overview, say a company newsletter, keep to one, easily-digestible subject in the body.</p> <p><strong>Finally,</strong> B2B marketers should decide what they would like the email recipient to do and <strong>have a clear call-to-action (CTA).</strong> Along with having one subject in the body copy, marketers should aim to have a single CTA in the email. That way, your subscriber will not have to prioritise the actions and end up doing nothing at all.</p> <p><img src="https://assets.econsultancy.com/images/0008/8863/email.png" alt="" width="800" height="408"></p> <h3>3. Concentrate your display efforts on retargeting</h3> <p>To complete his overview of how B2B marketers should drive traffic, Bhattacharya asked a simple question: Who has clicked on a banner ad recently?</p> <p>Those who did put their hands up agreed that all of their clicks had one thing in common - <strong>the banners people had clicked on were part of a retargeting campaign.</strong></p> <p>For those unfamiliar with the term, retargeting simply means that the ad you see is very closely related to another activity you performed online recently. You may have searched for something, viewed a particular web page, or put an item in a virtual shopping cart and then didn't purchase it and then, as if by magic, you see the item again as you surf the web.</p> <p><img src="https://assets.econsultancy.com/images/0008/8864/retargeting.png" alt="" width="800" height="452"></p> <p>Bhattacharya told delegates that <strong>B2B marketers should use retargeting ads as they perform far better than other ads.</strong> The reason is that you will be able to advertise a specific product or aspect of a service which the viewer has already shown an interest in.  </p> <p>This can reduce your target market to a 'market of one' which allows you to give them a compelling reason to return to your site.</p> <h3>A word of thanks</h3> <p>Econsultancy would like to thank <a href="https://www.linkedin.com/in/anolbhattacharya/?ppe=1">Anol Bhattacharya</a>, CEO at GetIT Comms and B2B marketing specialist, for his presentation as well as the delegates who took time out of their busy schedules to attend.</p> <p>We hope to see you all at future Singapore Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0008/8472/4.jpg" alt=""></p> tag:econsultancy.com,2008:BlogPost/69407 2017-09-08T11:35:52+01:00 2017-09-08T11:35:52+01:00 Programmatic in 2017: An interview with Getintent’s George Levin Seán Donnelly <p>This is especially important as programmatic continues to evolve beyond basic retargeting to include digital out-of-home, TV and audio. The pace of change certainly isn’t making things easy for marketers to understand, let alone optimise.</p> <h3>Outsourcing programmatic versus managing in-house</h3> <p>With the rapid pace of change, it’s no surprise that many brands are using agencies to manage their programmatic activities rather than hiring their own teams. Of course brands may have their own reasons for this but it’s no surprise that one of the main criticisms of this approach is that it can negatively impact upon creativity.</p> <p>To discuss this, I caught up with George Levin, the CEO and co-founder of Getintent, a machine learning-powered programmatic platform. George had some interesting things to say about the state of ad tech in general and why he thinks programmatic should be managed in house.</p> <p><img src="https://assets.econsultancy.com/images/resized/0008/8831/george_levin_v.1-blog-flyer.jpg" alt="George Levin, the CEO and co-founder of GetIntent, a machine learning-powered programmatic platform" width="202" height="202"></p> <p><em>George Levin, the CEO and co-founder of Getintent</em></p> <p>Historically, there has been some uncertainty about what bringing programmatic in-house really means. For some, it involves contracting professional services from technology vendors; for others it’s about hiring the right people and integrating the right technology and aligning programmatic with other marketing activities.</p> <p>According to George: “Brands can only be creative when programmatic is brought in house. If you run everything in house, you can have some great creative. After all, who knows the brand and the customer better than client-side marketers?”</p> <p>George points out that this becomes especially important when it comes to running programmatic for more top-of-the-funnel activities: “Prospecting activities need more involvement from the client-side marketers. More hypotheses can be tested to find the best and most efficient ways for prospecting using programmatic buying.”</p> <p>George points out that unlike basic retargeting, prospecting needs to be based on specific brand knowledge and customer research. Client-side marketers are in the best position to do this.   </p> <h3>Programmatic skills<em> </em> </h3> <p>Econsultancy has hosted a number of conferences about programmatic in recent years. A common refrain from brand side marketers has been that the budget required to manage programmatic in-house has been too great and also that it’s too difficult to assemble the skills required.</p> <p>That opinion no longer holds true according to George: “Brands can run successful programmatic campaigns with a team of just three people – a tech guy who understands the mechanics, an ad operations person and an analytics person. In fact, a smart kid spending two years in the area could run everything.”</p> <h3 style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">Ad technology is becoming commoditised<strong><br> </strong> </h3> <p>In terms of the ad tech, George explains that ad technology has become commoditised: “You don't need super smart tech guys to run your own tech stack. There are plenty of white-label DSPs, DMPs and optimization tools. </p> <p style="background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">"Everyone can afford a white-label DMP. This can be used to activate first-party data and high quality data from third parties. The DMP could then be connected to a white-label DSP. To integrate vendors and make your own stack without engineering help you just need a marketer with some tech background. Every marketing team should have a tech person.”</p> <p><img src="https://assets.econsultancy.com/images/resized/0008/8801/marketing_technology_landscape_2017_slide-blog-flyer.jpg" alt="" width="470" height="264"></p> <p><em>Source: <a href="http://chiefmartec.com/2017/05/marketing-techniology-landscape-supergraphic-2017/">Chief Marketing Technologist Blog</a> by Scott Brinker</em></p> <p>Levin even went so far as to say that clients of Getintent are willing to pay for full service programmatic management. That’s something that the company facilitates but he was very clear that he wants to focus on technology that he can sell to self service clients. The problem he says is that ad technology decision-makers are relying on agencies and vendors because they don’t understand how things work.</p> <p>And so despite everything that’s been written about the state of the programmatic ecosystem in terms of transparency, fraud and ambiguous metrics, it would appear that the elephant in the room (for some) may be an aversion to taking responsibility for managing programmatic in-house. It’s just easier to ask for full service.</p> <p>Whatever the issues with programmatic are, the budget being spent on it continues to grow. According to Zenithmedia [November 2016], programmatic trading accounts for 70% of the display advertising market in the US and the UK. The same research suggests that by 2018, the programmatic advertising market is expected to reach $64 billion. That’s a big chunk of change. </p> <h3><strong>Attribution</strong></h3> <p>Attribution isn't a new challenge. Despite the increasingly crucial role that attribution plays, <a href="https://econsultancy.com/reports/the-state-of-marketing-attribution" target="_blank">Econsultancy's State of Marketing Attribution report</a> found that less than a third of organisations carry out attribution across the majority of their campaigns. According to George, many marketers still use a last-click attribution model. </p> <p>Another is when marketers use an assisted post-click attribution model. This is when an order is attributed to all sources that generated a click within a post-click window. For example, marketers can attribute part of the value of a transaction to each of their traffic sources. In some cases, they might attribute greater value to the first or last click. In other cases, they might decide to attribute equal value to each source.</p> <p>The challenge is that some advertisers might end up assigning the same order to multiple sources, rather than weighting those sources to attribute a single order.</p> <p>This is one issue that George doesn't recommend trying to solve this problem in-house. He suggests that AI has a key role to play in handling this kind of problem: "There are a few some good vendors that can handle this problem who use AI to calculate the actual impact of each touchpoint and how it impacted the final transaction."</p> <p>In conclusion, the key points that George Levin wanted to get across are that programmatic can be used for upper funnel activies and that for it to work effectively, brands should examine how they can grow their own expertise to manage programmatic campaigns. The combination of brand knowledge, customer insight and the ability to customise programmatic campaigns will be key to success. </p> <h3>Getting on top of programmatic</h3> <p>Wherever you are in your programmatic journey, this year’s <a href="https://goo.gl/nJMlTI">Festival of Marketing</a> will play host to a stage dedicated to exploring the programmatic landscape. Attendees will learn how brands can keep abreast of new platforms for programmatic display, evolving technology to purchase and place adverts as well as the changing roles of agencies.</p> <p>Whether you want to explore programmatic trends or learn about managing programmatic strategically and tactically, we’ll have it covered. The <a href="https://goo.gl/nJMlTI">Festival of Marketing 2017</a> will take place on 4th and 5th October at Tobacco Dock on London.</p> <p><a href="http://www.festivalofmarketing.com/buy-a-ticket"><img src="https://assets.econsultancy.com/images/resized/0008/8802/festival_of_marketing_2017-blog-flyer.jpg" alt="Festival of Marketing 2017 Logo" width="470" height="118"></a></p> <p>As well as publishing <a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic/search/?only=BlogPost&amp;q=programmatic" target="_self">blogs on the subject</a>, Econsultancy also runs regular <a href="https://econsultancy.com/training/courses/programmatic/" target="_self">programmatic workshops</a> to help marketers cement their understanding of the programmatic landscape.</p> <p>If you already have an understanding of programmatic and want to look at some of the wider strategic use cases and challenges to be aware of, Econsultancy has published a number of reports on the subject:</p> <ul> <li><a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic/" target="_self">CMO’s Guide to Programmatic</a></li> <li><a href="https://econsultancy.com/reports/programmatic-branding/" target="_self">Programmatic Branding, Driving Upper Funnel Engagement</a></li> <li><a href="https://econsultancy.com/reports/programmatic-marketing-beyond-rtb/" target="_self">Programmatic Marketing: Beyond RTB</a></li> <li><a href="https://econsultancy.com/reports/the-role-of-dmps-in-the-era-of-data-driven-advertising/" target="_self">The Role of DMPs in the Era of Data-Driven Advertising</a></li> </ul> tag:econsultancy.com,2008:BlogPost/69409 2017-09-07T14:00:00+01:00 2017-09-07T14:00:00+01:00 What's up with Facebook's estimated reach numbers? Patricio Robles <p>According to Pivotal Research Group's Brian Wieser, the audience reach estimates Facebook frequently displays to advertisers vastly exceed those of the number of people who are actually in those groups.</p> <p>CNBC <a href="https://www.cnbc.com/2017/09/06/facebook-inflates-ad-reach-claims-pivotal-research-analyst.html">explained</a>:</p> <blockquote> <p>Facebook's Ads Manager claims a potential reach of 41 million 18- to 24-year olds and 60 million 25- to 34-year olds in the United States, whereas US census data shows that last year there were a total of 31 million people between the ages of 18 and 24, and 45 million in the 25-34 age group, the analyst said.</p> </blockquote> <p>This raises a huge question: how can advertisers trust the reach estimates if they indicate there are far more users on Facebook in a particular group than there are living, breathing people in that group?</p> <p>One possible answer: non-human users, or bots.</p> <p>As one commenter <a href="https://news.ycombinator.com/item?id=15187001">suggested</a> on Hacker News, "I doubt that Facebook is purposefully lying about their numbers, but the fact that they estimate their reach to be greater than the census results means there must be a lot of bot accounts on Facebook."</p> <p>He added:</p> <blockquote> <p>Assuming that Facebook isn't lying, and they actually see as many accounts as they claim to reach this data would suggest that at least 25% of the accounts on Facebook are alt accounts or bot accounts. And that is assuming that everyone in the target demographic who was in the census is on Facebook. Facebook must be greater than 25% bots.</p> </blockquote> <p>While bots are one possible explanation for the discrepancy between Facebook's reach estimates and census data, other possiblities include users with multiple Facebook accounts and underage users who Facebook's algorithms have lumped into older age groups.</p> <p>Technically, Facebook, like most social platforms, isn't open to users under the age of 13, but that doesn't mean they don't use the social network. <a href="http://www.telegraph.co.uk/news/health/children/12147629/Children-ignore-age-limits-by-opening-social-media-accounts.html">According to one survey</a>, the majority of 10- to 12-year-olds use social platforms despite the rules and 49% of those surveyed said they use Facebook.</p> <p>For its part, Facebook says its reach estimates "are designed to estimate how many people in a given area are eligible to see an ad a business might run. They are not designed to match population or census estimates." Facebook's estimates are based on "user behavior, user demographics and location data from devices."</p> <p>The company revealed that its reach estimates include people who visit a geographic area but don't live there, but given the significant gaps that appear to exist between Facebook's estimates and census figures, it's hard to know just how much this accounts for the discrepancies.</p> <p><strong>Which highlights the real problem advertisers face: Facebook's reach estimates, like many of its other metrics, are often generated by black boxes that advertisers have little visibility into the workings of.</strong></p> <p>According to Pivotal Research Group's Weisner, "Conversations with agency executives on this topic indicate to us that the gap between Facebook and census figures is not widely known." But even now that this has been brought to their attention, they'll probably have a limited ability to really understand what's going on because it's unlikely Facebook is going to provide much more in the way of detail about its reach estimates.</p> <p>"We think that awareness of general measurement issues causes larger advertisers to require the use of third-party measurement services, including Nielsen's DAR and comScore's vCE, to provide the basis against which Facebook is paid," Weisner suggested. </p> <p>He added, "While Facebook's measurement issues won't necessarily deter advertisers from spending money with Facebook, they will help traditional TV sellers justify existing budget shares and could restrain Facebook's growth in video ad sales on the margins."</p> <p>While it remains to be seen whether advertisers will really shy away from Facebook, with companies pouring more and more money into Facebook and the cost of Facebook ads jumping by nearly a quarter year-over-year in the second quarter, the stakes are increasingly high.</p> tag:econsultancy.com,2008:BlogPost/69397 2017-09-05T15:00:00+01:00 2017-09-05T15:00:00+01:00 Fox plans more 6-second ad slots, as digital influences television Patricio Robles <p>Take, for instance, Fox, one of the five largest television networks in the world. In August, <a href="https://www.mediapost.com/publications/article/305158/fox-launches-first-06-units-duracell-mars-first.html">it ran the first short-form, six-second ads</a> for battery brand Duracell and candy manufacturer Mars during the 2017 Teen Choice Awards.</p> <p>Now, Fox has decided to expand its use of the six-second ad format to NFL games it broadcasts this fall, as well as other sports programming, including the baseball World Series and other "marquee events.</p> <p><a href="https://www.nytimes.com/2017/08/30/business/media/nfl-six-second-commercials.html?_r=0">According to</a> The New York Times:</p> <blockquote> <p>People are used to seeing short video ads on platforms like Snapchat, Facebook and YouTube, but not so much on network TV, where the currency for decades has been 15 and 30-second ads. While TV networks have experimented with shorter commercials in the past, largely as publicity stunts for specific brands, Fox is hoping to make six-second ads an industry standard across broadcasters as consumers in the internet era show less tolerance for frequent, bloated ad breaks during shows.</p> </blockquote> <p>Pricing for the new ad units is not known. Ostensibly, the cost of a six-second ad will be lower than a 15 or 30-second ad, which could be attractive to advertisers given the significant costs associated with television ads, particularly those that are displayed during high-profile sports broadcasts.</p> <h3>The incredible shrinking television ad?</h3> <p>It's hard to imagine but at one point in time, the standard ad format for television was a minute long. The minute-long ad later became the 30-second ad, and today, most television ads are 15 seconds in length.</p> <p>But in the digital age, 15 seconds is a long time and that has led to the proliferation of the six-second video ad, particularly for pre-roll. Leading the push for the six-second ad is Google, which owns YouTube.</p> <p>YouTube's six-second ad unit <a href="https://econsultancy.com/blog/68917-can-brands-tell-a-story-in-six-seconds-youtube-hopes-so">has been dubbed the bumper ad</a> and it has been working to push advertisers to embrace this format. With just six seconds, advertisers <a href="https://econsultancy.com/blog/69108-four-tips-for-creating-effective-youtube-bumper-ads/">have to be very thoughtful, creative and focused</a>. While conveying a message that is effective if not compelling in just seconds might seem virtually impossible, Google says that a number of brands are finding ways to do it.</p> <h3>One ad format to rule them all?</h3> <p>The emergence of the six-second television ad raises the question: will the six-second ad make it possible for advertisers to develop individual ads that are just as effective for television as they are for digital?</p> <p>For years, brand advertisers have been told not to repurpose their television ads for digital. What works for television won't work for digital, advertisers were advised. But does the same wisdom apply now that digital ad formats are driving the creation of new television ad formats? In other words, can advertisers take their YouTube bumper ads and put them to good use on television?</p> <p>That remains to be seen and its worth noting that while Google is strongly promoting the six-second bumper ad format, it also acknowledged that "we've seen Bumper ads work best when combined with a TrueView or Google Preferred campaign." TrueView and Google Preferred campaigns aren't limited to six seconds.</p> <p>For example, a YouTube campaign for the Microsoft Xbox promoting Halo Wars 2 was developed by Microsoft's agency partner, 215McCANN and paired bumper ads with longer-form ads. <a href="https://www.thinkwithgoogle.com/advertising-channels/video/youtube-bumper-ads-six-second-format/">Per Google</a>:</p> <blockquote> <p>...Xbox started with a Masthead and long-form TrueView content push under the theme 'Know Your Enemy.' Then, as launch day approached, the brand invested heavily in remarketing with chuckle-worthy bumper ads that built on the long-form films' storylines.</p> </blockquote> <p>Since advertisers don't have the same retargeting capabilities on television, there are questions about how such a campaign would have been executed for television. Clearly, experimentation is needed.</p> <p>Which means that, for now, while the six-second ad could soon find itself a fixture on television, advertisers would be wise to recognize that their success with it will probably hinge on how they use it within their campaigns more than anything else.</p> tag:econsultancy.com,2008:BlogPost/69386 2017-09-05T12:00:00+01:00 2017-09-05T12:00:00+01:00 How Uber-competitor Curb used location-based targeting to drive app downloads Nikki Gilliland <p>Bought out by Verifone in 2016, which is the credit card company that supports payments in many of New York City’s yellow cabs, Curb is a new company that allows users to hail or pre-book with professional cab-drivers operating in US cities.</p> <p>Now in 65 different locations, Curb has recently ramped up its online efforts – specifically using a location-based social strategy to target new customers. Here’s a bit more on its recent campaign and a few reasons why location-based advertising has worked.</p> <h3>Targeting on social platforms</h3> <p>According to <a href="http://blog.globalwebindex.net/chart-of-the-day/uber-demographics/" target="_blank">Global Web Index</a>, 65% of Uber’s audience is made up of 16 to 34 year-olds, while just 6% of its users are over 55. Unsurprisingly, this younger demographic is also the most active on social media, with 87% of people aged 18 to 29 also using Facebook, and 59% of this age range also using Instagram.</p> <p>The decision to focus on these two platforms in particular was a no-brainer for Curb. And with bad-feeling towards Uber <a href="https://www.econsultancy.com/blog/68865-will-bad-pr-lead-uber-to-destruction" target="_blank">increasing in recent months</a>, the company seized the opportunity to tempt existing customers away from the brand.</p> <p>Curb teamed up with data-driven company Taptica to launch a social campaign across Facebook and Instagram, targeting relevant Android and iOS users in key locations. The brand also used an incentive, offering promotional codes for $5 or $10 off first rides. </p> <p>Discounting tends to be an effective tactic when it comes to tempting customers to try a new service, but perhaps even more so considering Curb typically costs a few dollars more than Uber. This is because the company charges an extra service fee as well as the fact it uses standard taxi fares calculated by a meter - and encourages tips. This might put-off customers who are used to Uber’s lower prices, however Curb does not use surge pricing – which means it can also work out much cheaper overall.</p> <p>Regardless, the discount-strategy certainly worked here – the incentive reportedly resulted in a 2.5X increase in app engagement.</p> <p><iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fgocurb%2Fposts%2F10155405386850552&amp;width=500" width="500" height="268"></iframe></p> <h3>Location-based incentives</h3> <p>Alongside money-off, Curb’s campaign also utilised a <a href="https://econsultancy.com/blog/67418-what-is-location-based-advertising-why-is-it-the-next-big-thing/" target="_blank">location-based strategy</a>, honing on specific aspects of US cities.</p> <p>By mentioning popular events or features exclusive to each or corresponding places, the ads were able to effectively pique the interest of people who live and work nearby. This type of ad also helps to create a much more personal connection, with users recognising that it is relevant to something unique to them. Or at least a little more so than a standard ad. </p> <p>Curb already uses locations in this way on its own social media channels, where it often mentions daily or weekly events, but this is usually to target existing users in bigger cities like New York or Chicago.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Get a Curb ride to the <a href="https://twitter.com/CopernicusCtr">@CopernicusCtr</a> this weekend for <a href="https://twitter.com/hashtag/Chicago?src=hash">#Chicago</a>'s annual <a href="https://twitter.com/hashtag/TasteofPolonia?src=hash">#TasteofPolonia</a> festival! <a href="https://t.co/UowwN7GaQb">https://t.co/UowwN7GaQb</a></p> — Curb (@gocurb) <a href="https://twitter.com/gocurb/status/902227281250279424">August 28, 2017</a> </blockquote> <p>In order to engage with new customers in cities where the app is less popular, Curb widened its radar – serving ads to people within a 50-mile radius of certain locations.</p> <p>Meanwhile, to create a large-scale campaign but also save on costs, it used a joint-city approach where possible. This meant that it targeted relevant customers in similar cities, without over-spending on any one place. </p> <h3>The results</h3> <p>Curb’s social campaign has contributed to the company’s recent growth. According to <a href="http://www.mobilemarketer.com/news/taxi-app-curb-drives-300-install-growth-with-location-based-social-strateg/503238/" target="_blank">Mobile Marketer</a>, it drove a 300% increase in app downloads, while targeting customers within a 50-mile radius drove five times more app installs. </p> <p>The Curb app moved from number 46 to 23 in the Google Play Store chart, and finally, the brand added 12 more locations since the three-month campaign ended.</p> <p><iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fgocurb%2Fposts%2F10155326731200552%3A0&amp;width=500" width="500" height="485"></iframe></p> <h3>What can we learn?</h3> <p>You could argue that Curb’s recent growth is a possible sign of resistance against Uber, but as the aforementioned results show, the campaign itself is not to be sniffed at.</p> <p>So, why did the ads resonate so much?</p> <p>Recent studies suggest that irrelevance is the main reason why consumers choose to use ad blockers, with 49% of people saying that ads are too irrelevant or annoying. To counteract this, marketers need to make campaigns as pertinent as possible – and using location is a great way to do this.</p> <p>It’s easy to scroll past an ad for a random product or brand, but less so to bypass the name of nearby place – especially if it is your home. The fact that Curb’s ads were tailored to where users live and work surely resulted in more engagement than they would if they were generic ads about the brand. </p> <p>There are limits to this kind of targeting of course. The line between relevant or personalised and an invasion of privacy can be rather thin. While targeting based on city-location is one thing, it might be a whole different story if Curb started using specific journey-based data to target customers.</p> <p>Interestingly, Facebook has just announced that it is to take targeting a step further by serving ads to households rather than individuals. This means that it will recommend brands or products that it thinks a co-habiting couple or the entire family would be involved with, such as travel or large technology items. </p> <p>Beside the point here, perhaps, yet it does show how brands might be reaching social media users in future. And for Curb - a company aiming to compete with a giant like Uber (who also has masses of data at its fingertips) – it’s a sign that creativity <em>and</em> caution will remain key to success.  </p> <p><strong><em>Related reading:</em></strong></p> <ul> <li><em><a href="https://econsultancy.com/blog/67830-young-users-aren-t-fans-of-targeted-social-ads-report/">Young users aren't fans of targeted social ads: Report</a></em></li> <li><em><a href="https://www.econsultancy.com/blog/67704-four-useful-tips-for-making-online-ads-relevant-personal">Four useful tips for making online ads relevant &amp; personal</a></em></li> </ul> tag:econsultancy.com,2008:BlogPost/69381 2017-08-30T15:00:00+01:00 2017-08-30T15:00:00+01:00 The Google-Facebook duopoly extends to mobile apps: What can marketers do? Patricio Robles <p>For marketers supporting brands that have invested in building their own mobile apps, the numbers highlight the significant challenges that exist when trying to get consumers to download, install, use and keep those mobile apps.</p> <p>Solving those challenges can require big outlays of cash. <a href="https://www.digitalcommerce360.com/2017/06/23/it-costs-more-than-60-to-acquire-an-app-customer/">According to</a> mobile app marketing firm Liftoff, across all app categories, it now costs marketers more than $4 to deliver a mobile app install, more than $30 to drive a mobile app account registraion and more than $75 to produce a mobile app purchase.</p> <h3>But it gets worse.</h3> <p>90% of the time consumers spend in apps takes place within their top five apps. And all told, half the time spent in apps is now taking place in the five mobile apps with the highest usage overall.</p> <p>For all age groups age 25 and up, the top five apps are all owned by Google and Facebook. In the 18 to 24 age group, all but one of the top five apps, Snapchat, is owned by Google and Facebook.</p> <p>Much has been made of the Google-Facebook digital advertising duopoly and perhaps nowhere is the power wielded by these two companies more evident than in their mobile app dominance.</p> <p>For marketers, this dominance creates a stark reality: if you want to reach consumers on mobile, you are going to have a very hard time doing so if you're not active in the Google and Facebook advertising ecosystems. In other words, if you want to reach consumers on mobile, you now realistically have to go through Google and Facebook.</p> <p>That explains why, for instance, <a href="http://www.adweek.com/digital/facebook-now-makes-84-of-its-advertising-revenue-from-mobile/">over 80% of Facebook's ad revenue now comes from mobile</a> despite the fact that five years ago, its mobile ad revenue was nil and everybody was debating whether or not the world's largest social network could ever figure out how to monetize its mobile usage.</p> <h3>So what should marketers do?</h3> <p>As it relates to reaching consumers via mobile, the better question is: what <em>can</em> marketers do? The dominance of Google and Facebook makes it all but impossible to market at scale on mobile without spending money with these behemoths. But there are still other opportunities.</p> <p>There are numerous app categories such as music, weather, games and personals, in which at least three-quarters of digital time spent takes place in mobile apps. Google and Facebook aren't the dominant players in these categories, and some of the companies that are, such as <a href="https://econsultancy.com/blog/66344-spotify-unveils-new-playlist-based-ad-targeting/">Spotify</a> and <a href="https://econsultancy.com/blog/66288-bud-light-turns-to-dating-app-tinder-for-whatever-usa-campaign">Tinder</a>, are increasingly building out their own ad businesses.</p> <p>There are also other app categories that are on the rise. For example, comScore says that news apps now account for 41% of the time consumers spend consuming news through digital channels. That's a six point gain from a year ago. So marketers will have more plentiful opportunities to find non-Google and non-Facebook opportunities in this category too.</p> <p>For marketers tasked with supporting a brand mobile app, the trends are not favorable, but that doesn't mean that brands can't succeed with their own mobile apps. It does, however, mean that end user value proposition is more important than ever. Simply offering a mobile app of marginal utility and throwing lots of money at marketing it is not good enough. Consumers need to see value if they're going to download, install and use a new app.</p> <p>With this in mind, it's worth noting that the most widely used mobile wallet today is the Starbucks app. Because it's integrated with the coffee chain's loyalty program, and is actually required to be used to earn rewards, Starbucks customers have a compelling incentive to use the app. Marketers need to be able to offer a similarly compelling incentive to their target audiences to be successful today.</p>