tag:www.econsultancy.com,2008:/topics/performance-marketing Latest Performance marketing content from Econsultancy 2016-10-21T11:45:54+01:00 tag:www.econsultancy.com,2008:BlogPost/68423 2016-10-21T11:45:54+01:00 2016-10-21T11:45:54+01:00 How fashion and travel are leading the way in m-commerce Gregory Gazagne <p><a href="http://www.deloitte.co.uk/mobileuk/">Deloitte’s Mobile Consumer Survey</a> found that UK citizens look at their smartphones over a billion times a day, declaring that “no other personal device has had the same commercial and societal impact as the smartphone, and no other device seems likely to.”</p> <p>Around the same time in late September the IAB released its ‘<a href="http://www.businesswire.com/news/home/20160927005394/en/Three-Quarters-Mobile-Users-World-Purchases-Smartphones-Tablets">Mobile Commerce: A Global Perspective</a>’ survey, which found that three-quarters (75%) of smartphone and tablet users say they have purchased a product or service on their smartphone or tablet in the past six months, and nearly a quarter (23%) buy on mobile devices on a weekly basis.</p> <p>As the retail industry rapidly adapts to mobile usage, at Criteo we’re able to analyse millions of online sales in real time, on all devices and from thousands of brands across all industries.</p> <p>With this front-row seat to the very latest in mobile commerce, we’re especially interested in looking at the way different retail industries are keeping pace with the rate of change.</p> <p>Because of the specific challenges facing them, we’ve seen that the fashion industry in particular is blazing a trail in smartphone targeting, including cross-channel strategies, and travel is making its mark by providing superior customer experience/ better conversions via apps.</p> <p>What’s driving these industries to lead in these areas – and what can others learn from them?</p> <h3><strong>The rise of the ‘Smartphonista’</strong></h3> <p>Last month’s New York-London-Milan-Paris Fashion Weeks saw the <a href="https://www.theguardian.com/commentisfree/2016/sep/30/us-vogue-editors-ridiculous-fashion-shows-changed-bloggers">old guard of print fashion journalism clash with the fashion world’s new digital influencers</a>, who rely on blogging platforms and Instagram to communicate with their thousands of followers.</p> <p>Their argument is symptomatic of a wider trend: that smartphones are revolutionising the way the fashion industry markets and sells its wares, and this is causing headaches for traditional media – but driving strong results on digital channels.</p> <p>According to Criteo <a href="http://www.criteo.com/resources/fashion-flash-report-2016/">data</a>, clothes have quickly become the premier mobile purchase in the UK, with 55% of online fashion purchases now being made through mobile (smartphones or tablets), and four out of 10 of all fashion purchases in the UK being made through smartphones.</p> <p>This makes fashion shoppers that purchase on smartphones (who we’ve coined ‘Smartphonistas’) a particularly valuable audience for fashion retailers.</p> <p><img src="https://assets.econsultancy.com/images/0008/0592/criteo_slide.png" alt="" width="800"></p> <p>Mobile is perfect for this kind of off-the-cuff purchase, allowing consumers to browse flash sales on their phone, shop while watching TV, or buy an article of clothing on a whim.</p> <p>In addition to impulse, these purchases can also be driven by social connections and social influence (as evidenced by the rise of the fashion bloggers so vilified by Vogue).</p> <p>Social media – particularly Snapchat, Instagram and Pinterest – appears to strongly influence clothing purchases on mobile.</p> <p>Heavy Snapchat users are 139% more likely to buy clothes on mobile than the average Brit, while heavy Instagram (113%) and Pinterest (83%) users are also much more likely than average to buy clothing on mobile, according to <a href="http://www.criteo.com/resources/a-portrait-of-mobile-performance/">Criteo’s Portrait of Performance report</a>.</p> <p>Despite all this, acquiring new fashion customers is notoriously hard.</p> <p>What’s more, it can take several purchases before a customer earns you a profit, and turning new customers into loyal buyers takes finesse.</p> <p>In response to these challenges, fashion retailers are starting to recognise what products drive the best response on what device.</p> <p>For example, fashion shoppers favour small screens for low-risk items (T-shirts etc.) and products they don't need to try on (e.g. accessories).</p> <p>In addition, the new breed of Smartphonistas often use multiple devices on the path to purchase, so retailers are starting to track more effectively across devices in order to send the right message to the right person, at the right time.</p> <p>Nadya Birca, Senior Digital Marketing Manager at New Look told us that the key to successfully engaging with the Smarphonista is to recognise that he or she expects a truly cross-channel experience:</p> <p>“With mobile usage soaring in the UK, the experience we’re aiming to deliver on mobile is significant for our interactions with customers both on- and off-line.</p> <p>"When browsing on mobile we shouldn’t expect users to purchase straight away - allowing them a seamless navigational exploration, and later consideration experience, is what should drive any mobile commerce business focus.”</p> <h3><strong>Destination App</strong></h3> <p>As the 36th annual <a href="http://wtd.unwto.org/en">World Tourism Day</a> reminded us at the end of last month, the tourism industry continues to drive positive social, cultural, political and economic impacts worldwide.</p> <p>In many countries, including the UK, the travel industry is feeling the positive impact of the rise of smartphone use.</p> <p>Criteo’s latest Travel Flash Report shows that one in five Brits now browse for travel options on their mobile phones, and close to one-third of online travel bookings worldwide took place on mobile devices in Q2 2016 (up 24% from the year before).</p> <p>During the same period, smartphones captured nearly one in five online travel bookings.</p> <p>But that’s not all – the travel industry, more than most other verticals, is seeing particular success when it comes to mobile apps.</p> <p>According to our data, with investment in in-app tracking and advertising, committed travel advertisers are seeing a surge of bookings made from apps.</p> <p>Apps generated 57% of mobile bookings in Q1 2016, up from 40% in Q3 2015.</p> <p>Over the past two years, travel brands that invested in their apps saw constant growth in app bookings from 12% to now over half of all mobile bookings. </p> <p>For one-night stays, apps have a clear lead over other devices or platforms, with nearly three in four app bookings made for one-night stays.</p> <p>The most effective travel mobile strategies encourage app installs with services that really make a difference:</p> <ul> <li>Personalising recommendations based on searches, selection criteria, past travels and wish lists</li> <li>Sending up-to-date, useful and non-intrusive notifications (e.g., check-in reminders, traffic, delays, alternatives, cancellation, nearby offers)</li> <li>Offering better deals on your app to temporarily capture downloads and bookings, but be consistent to sustain them</li> <li>Enabling one-click bookings with intelligent auto-fill of personal details (while highlighting payment security)</li> </ul> <p>App bookings are on a roll, and we can see that merchants who invested in and promoted apps early are now reaping the benefits. </p> tag:www.econsultancy.com,2008:BlogPost/68347 2016-09-29T01:00:00+01:00 2016-09-29T01:00:00+01:00 Seven ways to supercharge your data-driven marketing Jeff Rajeck <p>Nine out of ten put it in their first three, more than any other topic.</p> <p><img src="https://assets.econsultancy.com/images/0007/9633/data-driven.png" alt="" width="565" height="315"></p> <p>But what are marketers actually doing with their data?<strong><br></strong></p> <p>What tips can professionals give for those who may be just starting out with data-driven marketing?</p> <p>To find out, Econsultancy recently held roundtable discussions at our fifth annual Digital Cream Sydney.  </p> <p>There, client-side marketers from across the industry discussed trends, best practices, and the issues they are currently facing.</p> <p>The roundtables were moderated by subject matter experts from the industry. Participants brought their own experiences, questions, and challenges to the table for open discussion.</p> <p>Here are the highlights from the discussion at the Data Driven Marketing &amp; Marketing Attribution Management table.</p> <h3>1. Use personas and customer journey mapping for attribution modeling</h3> <p>We now live in an omnichannel world. People often use the web, social media, mobile, and search before buying something.  </p> <p>How can marketers determine the right amount to invest in each channel?</p> <p>Participants agreed that doing so, also known as attribution modeling, is one of the toughest tasks marketers now face.</p> <p>Figuring out which channels drive awareness, which help with research, and which lead to conversions is not easy - even with all the data in the world.</p> <p>While attendees admitted that there is 'no silver bullet' for determining the right model, delegates suggested that using customer experience data can help.</p> <p>They said that <strong>creating audience personas and then mapping each customer journey can provide insight into the path-to-purchase for different customers.</strong>  </p> <p>This can then provide the foundation for the elusive attribution model which helps marketers allocate their spending for optimal results.</p> <p><img src="https://assets.econsultancy.com/images/0007/9626/data-driven__Custom_.jpg" alt="" width="800" height="533"></p> <h3>2. Avoid using personas for more granular data-driven marketing</h3> <p>While the customer-centric approach may work for modeling attribution, delegates agreed that<strong> personas and customer journey maps were not so useful when doing more personalised data-driven marketing.</strong></p> <p>That is, when buying programmatic media or providing on-site personalisation, broad segments and models do not help.  </p> <p>Instead, attendees stated that <strong>marketers should use an individual's behavior to deliver relevant ads and personalised content.</strong>  </p> <p>What a person has viewed or purchased previously is much more likely to attract their attention in the future than something which fits a particular persona, one participant argued.</p> <h3>3. Look at <em>your</em> data when optimizing</h3> <p>Another dilemma marketers often face is how to optimize their website and ad buying based on outside trends.</p> <p>Recently, there have been many charts showing that mobile traffic is outpacing web traffic. Does this mean that marketers should go 'mobile first'?</p> <p>Not at all said the delegates. While it is useful to be aware of the trends in mobile, video, and messaging, <strong>marketers should prioritise their own customers' behaviours to help form strategies.</strong></p> <p>As an example, at one table on the day, there were some marketers who said that mobile usage was plateauing while others said that tablet traffic is becoming increasingly important to them.</p> <p>So, the recommendation is that marketers should first keep a close eye on the trends in their own data before making any drastic changes as a result of industry reports.</p> <p><img src="https://assets.econsultancy.com/images/0007/9627/data-driven2__Custom_.jpg" alt="" width="800" height="533"></p> <h3>4. Use data for more than just conversions</h3> <p>Marketers these days are typically required to produce data to justify their budget.  </p> <p>Metrics such as cost-per-acquisition (CPA) and return on ad spend (ROAS) are commonly used by the business to gauge performance.</p> <p>Because of the need to demonstrate that marketing spend matters to the business, <strong>attendees agreed that most of the effort spent on marketing attribution and data-driven marketing is used to lower customer acquisition costs</strong>. </p> <p>However, delegates also agreed that we now have the data to do much more. <strong>Data should also be used, they argued, to improve customer retention and loyalty.</strong></p> <p>Doing so will, in turn, increase the lifetime value of customers and improve the bottom line, albeit in a less direct way.</p> <p>Marketers should, therefore, look for opportunities to use data for customer experience and resist the tendency to look for the immediate gratification of a lower CPA.</p> <h3>5. The best third-party data is from sites where users log in</h3> <p>While marketers tend to have a good handle on the data from their own sites (first-party data), many are still wondering about the value of data from other sites (third-party data).</p> <p>This concern was made apparent because, when asked, only around 10-15% of marketers at the tables admitted using a data management platform (DMP) as a 'single source of truth' about their customers.</p> <p>The reasons for hesitating are well-founded. Many third-party data services guess at aspects of users' identities from the sites they visit or activities they have done in the distant past.</p> <p>Attendees asserted, however, that <strong>sites which require users to log in can provide much higher-quality third-party data.</strong></p> <p>Specifically, Google and Facebook can both link extensive browsing and posting behaviour to a particular person.  </p> <p>For this reason, delegates said that such sites do offer third-party data worth using for advertising and analytics.</p> <p>Interestingly, one participant noted, both Google and Facebook are also starting to offer data which allows brands to track consumers offline.</p> <p>That is, they will know whether someone has entered a particular location (e.g. a store) after viewing an ad on their platform.</p> <p><img src="https://assets.econsultancy.com/images/0007/9628/data-driven3__Custom_.jpg" alt="" width="800" height="533"></p> <h3>6. Aim to make small changes with insights from data</h3> <p>While most of the day's discussions were positive, one negative aspect of data-driven marketing emerged. </p> <p>Even with insights from data,<strong> delegates admitted that it was rare that recommendations based on data were actually implemented</strong>.</p> <p>Data was more likely, they said, to be used for retrospective reporting and business-oriented statistics.</p> <p>One way around this, one participant suggested, is to adopt a more 'agile' way of working.</p> <p>What this means is that marketing teams should avoid gathering vast amounts of data in an attempt to influence strategic decisions.  </p> <p>Instead, <strong>marketers should use insights to drive incremental changes on a frequent, tactical basis.</strong></p> <p>In this way, the 'agile' approach will change an organisation's approach to marketing iteratively over time and have a much higher likelihood of succeeding.</p> <h3>7. The biggest hurdle? Finding the right people.</h3> <p>In previous years, marketers have lamented about quality of marketing technology and the difficulty of obtaining data to drive marketing strategy.</p> <p>While these are still concerns, <strong>delegates this year said that their biggest challenge was finding the right people to drive data-driven marketing initiatives.</strong></p> <p>Attendees agreed that that finding people who could interpret data both technically and commercially was really hard. Additionally, these people are critical for getting insights out of data.</p> <p>Newly-hired data scientists are often too technical and abstracted from the operational business to help. Experienced marketers, though familiar with the business, often lack the statistical modeling skills to extract new insights from data.</p> <p>One suggested approach is for marketing teams to recruit analysts with business acumen and data crunching skills.  </p> <p>But in lieu of staffing up with the right people,<strong> participants felt that marketers could also take a more active role in interrogating the data themselves for insight. </strong></p> <p><strong><img src="https://assets.econsultancy.com/images/0007/9630/data-driven4__Custom_.jpg" alt="" width="800" height="533"></strong></p> <h3>A word of thanks...</h3> <p>Econsultancy would like to thank all of the marketers who participated on the day and especially our Data Driven Marketing &amp; Marketing Attribution Management table moderators,<strong> Beaudon McLaren, APJ Ecommerce Manager at Symantec</strong> and <strong>Ashley Friedlein, President of Centaur Marketing &amp; Founder of Econsultancy.</strong></p> <p>We hope to see you all at future Sydney Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0007/9632/moderators__Custom_.jpg" alt="" width="800" height="533"> </p> tag:www.econsultancy.com,2008:BlogPost/68321 2016-09-27T14:02:20+01:00 2016-09-27T14:02:20+01:00 Making the business case for programmatic advertising Seán Donnelly <h3><strong>1. Consumer trust</strong></h3> <p>Firstly, and perhaps most importantly, is the issue of trust.</p> <p>Before the advent of the World Wide Web and in particular the universal ability to publish, there was an asymmetrical relationship between sellers and consumers, particularly when it came to selling high value or technical products such as motor cars.</p> <p>One side (the seller) was fully informed, and the other side (the consumer) was partially in the dark.</p> <p>This balance has now shifted. Consumers are now far more educated about what they are purchasing.</p> <p>In many cases, they may have just as much information as a seller, along with a means to report on their experiences via blogs, social media or review engines like TrustPilot and TripAdvisor.</p> <h3><strong>2. Fragmented consumer attention</strong></h3> <p>The second reason may be due to the availability of media and the devices where media is consumed, leading to a fragmentation of consumer attention.</p> <p>It’s not as easy to capture their attention now via newspaper, radio and television advertisements. </p> <p>Consider the well-worn example of the average Londoner’s 45-minute tube journey where they are exposed to more than 130 advertisements, featuring over 80 different products.</p> <p>In an entire day, the average Londoner is may be exposed to 3,500 – 7,000 marketing messages according to some sources.</p> <p>In addition, as channels proliferate, it is becoming easier for marketers to create and distribute content.</p> <p>At the same time, because so much media has been democratised, it has also become easier for people to create and distribute cat videos.</p> <p>This makes it incredibly difficult for marketers to cut through the noise, which creates a requirement for marketers to focus on value, quality and relevancy as very few can make volume, quantity and reach work.</p> <p>And so marketers have a new priority, to be able to deliver the right message, via the right medium, at the right time.</p> <p>To make things even trickier, they need to be able to do this at scale.</p> <h3><strong>Enter programmatic</strong></h3> <p>Programmatic advertising may be the key to help marketers overcome this challenge.</p> <p>It's a fairly new addition to some marketers' toolkits and for this reason there is a long tail of marketers that haven’t taken the time to understand the opportunity. </p> <p>I recently attended a programmatic workshop delivered by Head of Digital at Disrupt the Market Ltd and Econsultancy trainer Andy Letting to get a better understanding of the opportunities that programmatic offers.</p> <h3><strong>Problems solved</strong></h3> <p>According to Andy, programmatic solves two key business challenges.</p> <p><strong>Firstly,</strong> both buyers and sellers of digital media struggle with the complexity involved in digital media transactions.</p> <p>Planners can easily spend hours manually sorting through available inventory and discovering prices to begin negotiating deals with the sellers or publishers.</p> <p>And publishers compete for these sales in a cumbersome, highly manual agency-created RFP process that keeps them at arms-length from advertisers.</p> <p>Programmatic brings efficiency in terms of insertion orders, pricing negotiations and the back and forth which traditionally accompanied negotiations.</p> <p>Secondly, programmatic also solves the problem of where media is bought. </p> <p>Marketers didn't always know if the media purchased was on websites that were relevant to their brand. There was little control.</p> <p>Now, in theory, marketers have the ability to reach the right person, in the right place with the right product so they no longer need to focus on volume. </p> <p>According to Andy:</p> <blockquote> <p>We can focus on quality rather than quantity. This is where programmatic stands out... Marketers can now use their time planning rather than negotiating. Agencies can use what was negotiation time for planning and optimisation.</p> </blockquote> <h3>Programmatic as part of a wider integrated approach to marketing</h3> <p>So if programmatic advertising is such a boon for marketers, how come some organisations have been slow to integrate it into their other marketing activities?</p> <p>According to Andy, programmatic has really only become mainstream relatively recently.</p> <p>“Programmatic has been around for a long time but it has only really become mainstream in the last two years.</p> <p>"Publishers have got their acts together and developed programmatic solutions so it's still early days. Programmatic this year is expected to reach over £2.5bn in spend. That's 10% of total UK advertising spend so it is making a real impact. </p> <p>"In terms of maturity, I think channels will (eventually) evolve into programmatic channels so if you think of radio and TV, this is only starting. Digital media buying is at the forefront of this.</p> <p>"I believe when we go into above-the-line activity programmatically, that's where we will see another shift in gear because then you'll get senior executives understanding programmatic as it's touching a world that they are immersed in and understand more than digital."</p> <h3>Towards making programmatic part of other brand building activities</h3> <p>On the subject of above-the-line activity, I asked Andy if programmatic can be used for big brand ideas.</p> <p>Andy advised that for any campaign that's part of brand activation, there should be an element of programmatic as it is a useful tool for testing.</p> <p>“Brands should know or at least have a good understanding of their customer. There is no reason why you can’t build a customer subset to examine via programmatic in an attempt to understand them better. That's a good enough reason for doing it."</p> <p>This suggests that programmatic could be used to test messaging either before or during a live campaign.</p> <p>As well as offering results in its own right, programmatic can be used to capture real time insights that can be used to make campaign updates.  </p> <p>“If you can bring that insight back in to contribute to your view of the customer, you can keep developing your understanding and hopefully strengthen that customer relationship.” </p> <h3>Getting started and reconsidering the traditional budget cycle</h3> <p>Ultimately, programmatic should be focused on the customer.</p> <p>This means pulling together skill sets within the organisation to reach that customer in ways that haven't been done before. </p> <p>According to Andy, this means that marketers can’t start doing programmatic on their own. They will need brand buy in and support and will also require the support of legal and data teams.</p> <p>“If you take an FMCG company that manages multiple brands, how to immerse programmatic (into marketing activities) might be to test programmatic with a single brand to put the building blocks in place and take other stakeholders on a journey.”</p> <p>If programmatic can be used to capture insights and update campaigns once they are live, then this might suggest that the traditional budget cycle is old hat.</p> <p>If that’s the case, marketers will need to work more closely with their Financial Controller to develop a new approach that empowers them to adjust budgets and campaigns to take advantage of clearly defined opportunities. <br> </p> <h3>Getting on top of programmatic</h3> <p>Econsultancy runs regular <a href="https://econsultancy.com/training/courses/programmatic/">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/">CMO’s Guide to Programmatic</a></li> <li><a href="https://econsultancy.com/reports/programmatic-branding/">Programmatic Branding, Driving Upper Funnel Engagement</a></li> <li><a href="https://econsultancy.com/reports/programmatic-marketing-beyond-rtb/">Programmatic Marketing: Beyond RTB</a></li> <li><a href="https://econsultancy.com/reports/the-role-of-dmps-in-the-era-of-data-driven-advertising/">The Role of DMPs in the Era of Data-Driven Advertising</a></li> </ul> <p>Econsultancy also regularly <a href="https://econsultancy.com/reports/the-cmo-s-guide-to-programmatic/search/?only=BlogPost&amp;q=programmatic">publishes blogs on the subject of programmatic</a></p> tag:www.econsultancy.com,2008:BlogPost/68256 2016-09-06T14:06:47+01:00 2016-09-06T14:06:47+01:00 RIP innovation: How your company culture is killing marketing creativity Chloe Young <p dir="ltr">In a fast-moving marketing landscape where new channels and platforms appear almost monthly, do marketers run the risk of losing opportunities because they haven’t yet been proven?</p> <h3 dir="ltr">What are the barriers to investment in digital marketing?</h3> <p dir="ltr">An <a href="https://econsultancy.com/reports/marketing-budgets/">annual study by Oracle Marketing Cloud and Econsultancy</a> asked marketers: “What is preventing your company from investing more in digital marketing?”</p> <p dir="ltr">The 2016 results showed clearly that, along with restricted marketing budgets, inability to measure ROI, short staffing and company culture were top obstacles.</p> <p dir="ltr">Crucially, the drive for strict ROI impacts the other factors, as without concrete figures decision makers are unwilling to increase budgets.</p> <p dir="ltr">This impacts staffing and forces continued reliance on traditional marketing, creating a vicious cycle.</p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0007/8792/marketing_budgets.png" alt="" width="639" height="437"></p> <h3 dir="ltr">Is your company culture risk-averse or innovation-friendly?</h3> <p dir="ltr">In a risk-averse culture, innovation is stifled by the overwhelming need to demonstrate ROI. But innovation requires people, and hiring the right people requires budget.</p> <p dir="ltr">With budget hanging on ROI, you find yourself stuck in limbo, unable to bring innovators into the team who can explore new channels, and bring positive change.</p> <p dir="ltr">Your organisational culture should enable, support and catalyse change.</p> <p dir="ltr"><a href="https://www.econsultancy.com/reports/effective-leadership-in-the-digital-age">Research</a> has shown that digital leaders see clear differences between companies with a digital culture and those without in their ability to adapt, innovate and create.</p> <p dir="ltr">To gauge the current state, Oracle Marketing Cloud and Econsultancy asked marketers to agree or disagree with the statement: “We reserve a proportion of budgets for more innovative but untried marketing activities.”</p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0007/8793/agree_with_these_statements_.png" alt="" width="700" height="467"></p> <p dir="ltr">At one extreme, a third (33%) of respondents disagreed with the statement, with 8% replying ‘strongly disagree’.</p> <p dir="ltr">These companies can be said to have risk-averse marketing strategies with little room for innovation.</p> <p dir="ltr">At the other end, 35% agreed to some extent that there was room in their budgets for trying new marketing activities, with 3% replying ‘strongly agree’. The remaining third (32%) were neutral.</p> <p dir="ltr">It’s clear that newer marketing opportunities are not always enthusiastically grasped and explored.</p> <p dir="ltr">But by relying too heavily on what has worked in the past, marketers run the risk of falling behind in today’s fast-moving marketing landscape.</p> <p dir="ltr">What worked yesterday may be no good tomorrow. Ongoing marketing success requires an open mind and the ability to adapt.</p> <p dir="ltr">That’s why it’s essential to set aside time and budget for charting new frontiers.</p> <h3 dir="ltr">New channels pose a challenge to ROI reliance </h3> <p dir="ltr">Some channels are perceived as more measurable than others. Established formats like email and <a href="https://econsultancy.com/reports/paid-search-marketing-ppc-best-practice-guide/">PPC</a> win out over newer disciplines like mobile, personalisation and video. </p> <p dir="ltr">This illustrates the danger of being driven purely by ROI. All indicators now point to mobile and video as the current and next big things in consumer consumption. </p> <p dir="ltr">Mobile now counts for 25-29% of consumer time on media, and yet our survey of marketers found that respondents are spending only 4% of their digital marketing budgets on mobile marketing.</p> <p dir="ltr">According to Sir Martin Sorrell, CEO of WPP advertising group:</p> <blockquote> <p dir="ltr">Underinvestment in mobile... is due to a lack of clarity around the measurement of mobile advertising, particularly in the ‘walled garden’ ecosystems of Facebook and Google.</p> <p dir="ltr">Creativity on mobile is one thing, but measurement is another; people are not sure of the ROI.</p> </blockquote> <p dir="ltr">Only 18% of respondents said their ability to measure ROI was good for mobile marketing for acquisition, and 15% for mobile marketing for engagement/retention.</p> <p dir="ltr">Between them, Facebook and Google have 70% of marketing share, with a higher penetration than desktop.</p> <p dir="ltr">So it’s clear that marketers must put more budget into these emerging channels. A lack of innovation here will quickly see brands falling out of step with consumer behaviour. </p> <h3 dir="ltr">Shop Direct case study </h3> <p dir="ltr">Investing in mobile doesn’t have to be a stab in the dark. As the channel matures, clear examples of brand success are beginning to emerge.</p> <p dir="ltr">Shop Direct, the UK’s second-largest online retailer, ploughed budget into Facebook’s suite of advertising products for its Black Friday campaign.</p> <p dir="ltr">It moved customers through every part of the funnel, from awareness (via Instagram and Facebook videos), to consideration (through retargeting video viewers), to conversion with Facebook dynamic product ads.</p> <p dir="ltr">The results speak for themselves: a 20x return on investment, and Shop Direct's most successful sales day ever.</p> <h3 dir="ltr">What next: ROI vs Innovation?</h3> <p dir="ltr">The good news is that marketers are a dynamic and forward-thinking bunch of people.</p> <p dir="ltr">Already, over a third of companies have room in their budget for innovation, with a core 3% leading the pack.</p> <p dir="ltr">However, there is still much room for improvement. Perhaps due to restrictive budgets and risk-averse company culture, mobile, marketing automation and personalisation are yet to make it into the top ten priorities for budget increases.</p> <p dir="ltr">But the industry is waking up to the importance of other new approaches like social media acquisition and video advertising; 60% and 58% plan to increase investment in these channels, respectively.</p> <p dir="ltr">The marketing landscape and consumer behaviour continue to rapidly evolve. The field will belong to those who can maintain established ROI-led activities, and exploit rich new opportunities as they unfold.</p> <h3 dir="ltr">Takeaways</h3> <ul> <li> <p>Commitment to ROI is crucial but can be a dampener on marketing innovation.</p> </li> <li> <p dir="ltr">Restricted budgets, lack of staff and a risk-averse company culture are the key obstacles to investment in digital marketing.</p> </li> <li> <p dir="ltr">Your organisational culture should enable, support and catalyse change.</p> </li> <li> <p>Newer channels like video and mobile are forcing marketers to innovate in order to keep up with consumer behaviour.</p> </li> <li> <p dir="ltr">Ongoing success relies on ability to balance 'safe' ROI-driven activities with innovation and new approaches.</p> </li> </ul> <p dir="ltr">Find out how marketing budgets are changing, and how to extract maximum value from yours!</p> <p dir="ltr"><em>Download: <a href="https://econsultancy.com/reports/marketing-budgets/">Marketing Budgets 2016: Part of the Modern Marketing Actionable Insights Series</a>.</em></p> tag:www.econsultancy.com,2008:BlogPost/68228 2016-08-31T11:04:34+01:00 2016-08-31T11:04:34+01:00 How The Financial Times is dealing with the problem of ad blocking Nikki Gilliland <p>You can watch the interview in full here, and I've also summarised her answers below.</p> <p><iframe src="https://www.youtube.com/embed/MUoHJ-y0GcI?list=PL1-kPkZBw50FexVdl4i94-lQdSVnsN7A1&amp;wmode=transparent" width="854" height="480"></iframe></p> <h3>The FT's innovative approach</h3> <p>While some sites have started to completely block access to anyone using the software, The FT is taking a different approach.</p> <p>One of multiple strategies, it has recently started to serve a partial view of the site to anyone using ad-blocking software, by blurring or missing out portions of text.</p> <p>Essentially, this serves as a visual-representation of what ad blocking does to the business revenue overall. </p> <h3>Getting users to understand the impact</h3> <p>Instead of merely shutting out readers, The FT’s strategy aims to get consumers interested and engaged in what is an industry-wide problem.</p> <p><a href="https://pagefair.com/blog/2015/ad-blocking-report/" target="_blank">Adobe estimated</a> that ad-blockers cost publishers nearly $22bn in 2015, and according to Sacha, consumers can often be unaware of the large-scale impact.</p> <h3>A consumer-focused solution</h3> <p>There is no single solution to the problem of ad-blocking, however The Financial Times is striving to bring back the focus onto the consumer.</p> <p>In doing so, it aims to create a two-way conversation – recognising the pitfalls for both publishers and their audiences – to ultimately find a solution for all.</p> <p><em>Sacha is among the expert speakers at Econsultancy's <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With The Programmatic</a> event in London on September 21.</em></p> tag:www.econsultancy.com,2008:BlogPost/68227 2016-08-25T11:52:00+01:00 2016-08-25T11:52:00+01:00 What is the Financial Times' approach to programmatic advertising? David Moth <p>Sacha Bunatyan, global B2C marketing director at the Financial Times, is among the expert speakers who will be in attendance.</p> <p>Ahead of Get With The Programmatic, we spoke to Sacha to get her views on how the FT uses programmatic and how the technology has impacted the marketing industry. </p> <p>You can watch her answers in full in this video, and I’ve also summarised them below.</p> <p><iframe src="https://www.youtube.com/embed/UEZ89uB1bLs?list=PL1-kPkZBw50FexVdl4i94-lQdSVnsN7A1&amp;wmode=transparent" width="640" height="360"></iframe></p> <h3>How has the FT used programmatic to promote the brand and sell subscriptions?</h3> <p>According to Sacha, programmatic advertising is hugely important to The FT, as demonstrated by the fact that it recently appointed Elli Papadaki as head of programmatic sales.</p> <p>Furthermore, The FT’s chief data officer sits on the board of directors and the company employs more than 30 <a href="https://econsultancy.com/blog/67203-data-analysts-vs-data-scientists-what-s-the-difference/">data scientists and analysts</a>.</p> <p>To ensure this analytical talent is not wasted, the subscriptions and ad sales teams work closely together using “one set of data, one set of segmentation.”</p> <p>At Get With The Programmatic, Sacha will be able to discuss a programmatic campaign that resulted in a 300% uplift in subscriptions versus the average week. </p> <h3>What do you think makes for an effective programmatic campaign?</h3> <p>Sacha said that effective campaigns require the right balance of a strong message combined with effective use of media.</p> <p>The data and insights that come out of each campaign should then be evaluated to aid ongoing optimisation and improve decision-making.</p> <h3>How do you think agencies should be responding to brands bringing programmatic in-house?</h3> <p>The thorny question of how agencies fit into the programmatic landscape is one that <a href="https://econsultancy.com/blog/66639-the-boom-of-the-programmatic-gong/">we’ve discussed a lot in the past</a>.</p> <p>Sacha said there is “no one-size-fits-all approach”, and the trend at the moment is for businesses to take greater control of their data in order to better understand their audiences.</p> <p>At the same time Sacha describes the agency role as “multifaceted”, with the core expertise being in connecting brands with the right media.</p> <p>In future she predicts that we’ll see a hybrid solution where brands will invest more in core competencies and link up with agencies for key partnerships around specific projects or campaigns.</p> <p>For The FT, a good agency partner is one that can offer a custom, tailor-made approach.</p> <p><em><strong>To learn more about the FT’s approach to automated media buying, come to <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With The Programmatic</a> in London on September 21st.</strong></em></p> tag:www.econsultancy.com,2008:BlogPost/68198 2016-08-17T10:06:00+01:00 2016-08-17T10:06:00+01:00 How ‘people-based marketing’ is redefining effectiveness in programmatic ad buying Maeve Hosea <h3>How is programmatic allowing you to move forward with your advertising strategy?</h3> <p>Crucially, programmatic enables us to have more transparency.</p> <p>Historically, we didn’t get a lot of information out of the media buys we were doing through large media agencies.</p> <p>We weren’t aware of where the inventory was being served and therefore unable to learn about where customers were and what type of messaging and content they were interacting with.</p> <p>We were paying lots of money but not taking the learnings away from it in terms of how to optimise – spending hundreds of thousands but none the wiser.</p> <p>The advantage of programmatic is that you are making that investment, you are seeing media buys that are working, how that changes over the course of a year, how it is affected by seasonality and so forth.</p> <p>That is then valuable knowledge that the business retains.</p> <h3>What do you think are the most exciting programmatic developments across media?</h3> <p>The line Facebook is currently touting about people-based marketing is something that I am passionate about.</p> <p>The programmatic solution in Facebook today means you can upload lists and very specifically target people.</p> <p><em>MBNA has been buying Facebook ads programmatically</em></p> <p><img src="https://assets.econsultancy.com/images/0007/8109/MBNA_programmatic_ad.jpeg" alt="" width="715" height="449"> </p> <p>So it seems it is only a matter of time before we see the next evolution of programmatic display, TV buying and whatever else programmatic evolves into.</p> <p>Programmatic will increasingly become about audiences rather than cookies and pixels.</p> <h3>What can you say about fraud and the challenge that poses?</h3> <p>Fraud as an issue is ever-evolving. We have to watch that just as we have to watch ad blocking and anything else that fundamentally changes the area we are operating in.</p> <p>Our way of dealing with it has been to change our success metric. We have been working on changing the KPI to look at incrementality as a way to help mitigate risk from fraud.</p> <p>We are now using our non-viewed display conversions – of which we have a lot, like everybody else – to get our baseline conversion rate.</p> <p>Success is the incremental between the impressions we serve that don’t get viewed and the impressions that do get viewed.</p> <p>That shows us the true performance of our display advertising.</p> <h3>Where do value, creativity and effectiveness meet?</h3> <p>For us it is about [defining the right audience segments for a campaign] but it is also about tailoring the message to what we know about people.</p> <p>My approach, with our provider Infectious Media, is to think about different treatments where advertising is more likely to resonate with people, based on information that I can acquire from across social or various third parties.</p> <p>Programmatic is a strange field in that it increasingly requires numbers people but ultimately the output for all those numbers and analysis – the segmentation that you are running – is still creative and requires creative people.</p> <p>We do some of that work in-house but we also reach out to specialist agencies to push the boundaries of creative thinking.</p> <h3>Which media channels are next for programmatic and why?</h3> <p>The obvious one is TV. The guys at Sky are kind of there with AdSmart but it is a little on the expensive side.</p> <p>You would think that the players will bring that element to the table soon enough and we are going to be able to buy TV advertising programmatically.</p> <p>That is the challenge for the industry: helping people feel a bit better about marketing by delivering marketing that is more aligned to their wants, needs and interests.</p> <h3>What are the pressing issues in the programmatic sphere moving forward?</h3> <p>Cross-device marketing is crucial. There are lots of people trying to do deterministic measurement models within display advertising [where a consumer is identified by linking browsing behaviour with personal login data] and I have a big issue with a way a lot of those are set up.</p> <p>I am not convinced by the accuracy or transparency that sits within that. It is still a bit of a bugbear and I think the industry still has a lot of work to do on solving that cross-device piece.</p> <p>Programmatic needs to evolve by moving away from cookies and pixels and I think the people-based marketing approach has the power to tip the whole industry on its head.</p> <p><em><strong>Back for a third year, Marketing Week and Econsultancy’s <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With the Programmatic</a> conference and workshop will take place in London on 20 and 21 September. </strong></em></p> <p><em><strong>Nic Travis is one of the brand experts sharing insights into how to make the programmatic landscape work for you.</strong></em></p> <p><em>This article was originally <a href="http://www.marketingweek.com/2016/08/16/how-people-based-marketing-is-redefining-effectiveness-in-programmatic-ad-buying/">published on Marketing Week</a>.</em></p> tag:www.econsultancy.com,2008:BlogPost/68063 2016-07-14T10:15:00+01:00 2016-07-14T10:15:00+01:00 Can we overcome the tension between programmatic and creativity? David Moth <p>Creatives would ask how an artificial intelligence could possibly understand the artistry and emotional levers that underpin a truly great ad campaign?</p> <p>Would programmatic buying have improved the Guinness Surfer or the Cadbury Gorilla?</p> <p><iframe src="https://www.youtube.com/embed/kAOZ14Tjg7A?wmode=transparent" width="560" height="315"></iframe></p> <p>I’m being overly simplistic here, but these sorts of concerns do exist.</p> <p>I’ve heard several agency bods fret about the impact on creative ideas, particularly when it comes to brand advertising.</p> <p>However, I’m confident that we’ve almost reached a tipping point in terms of industry knowledge and understanding around programmatic.</p> <p>It feels as if marketers are finally comfortable enough with the concept of programmatic buying to understand the huge opportunities it provides, rather than simply dwelling on the potential limitations.</p> <p>I recently attended a panel session where <a href="https://econsultancy.com/blog/67599-31-opinions-on-the-future-of-programmatic-advertising/">marketers debated whether programmatic targeting impedes creativity</a>.</p> <p>POKE co-founder Nic Roope felt that too much targeting and personalisation can “erode the feeling of the art.”</p> <blockquote> <p>It’s the usual tension between art and the machine. Take a film and personalise it. Are all personalised results more resonant than the original unedited film?</p> </blockquote> <p>Nic was referring in part to an Axe deodorant commercial called Romeo Reboot, which broke the brand’s target audience into four segments and offered each 25,000 different permutations of the video ad.</p> <p>The interchangeable elements ranged from simple things like the music, up to whether viewers saw a crime story or a sci-fi action scene.</p> <p><iframe src="https://player.vimeo.com/video/131929702?color=fcfbfa&amp;title=0&amp;byline=0&amp;portrait=0" width="640" height="360"></iframe></p> <p>Nic’s thoughts were echoed by Charles Vallance from VCCP, who said that agencies weren’t keen on programmatic as they “like to unite with a single idea, not create 78 versions of something.”</p> <p>From the client point of view, Topman’s Tom Lancaster talked about the “mind-boggling” amount of ad creatives required to implement a programmatic campaign based around five interest personas.</p> <p>But while it might all seem like a lot of hard work, it was noticeable that Tom didn’t suggest that the programmatic campaign had been a wasted effort.</p> <h3>Programmatic does not equal ultra-atomisation</h3> <p>Romeo Reboot is an extreme example of what programmatic can do and the campaign has received a lot of attention from the trade press.</p> <p>But in spite of the fanfare, we’re yet to hear any actual results from the campaign.</p> <p>In my opinion, the Romeo Reboot campaign is something of a red herring in this debate.</p> <p>Nobody really thinks that programmatic buying will require marketers to come up with 100,000 different permutations for each campaign.</p> <p>Instead the focus should be on where programmatic can aid the delivery of contextual, relevant ads, with a few elements personalised to make the creative more effective.</p> <p>For example, the specific product, price or offer might be altered based on factors such as the user’s profile, the time of day, their browsing behaviour or their location.</p> <p>This needn’t have any major impact on the overall tone and idea behind the campaign.</p> <p>In an article <a href="https://econsultancy.com/blog/67835-bringing-data-into-creativity-in-a-programmatic-world/">published on the Econsultancy blog</a>, Affectv CEO Glen Calvert argues that as programmatic has matured, a lot of the processes have been streamlined.</p> <p>As a result, “the ‘plumbing’, or logistics, side of programmatic is becoming less of an obstacle to using data and creative to tell a good brand story.”</p> <p>The situation will only improve as marketers become increasingly familiar with programmatic and aware of its ability to meet the creative requirements necessary to tell their brand story.</p> <h3>The Economist leads the way</h3> <p>Now seems a good point to highlight a creative programmatic case study that produced some really excellent results, just to prove that it can be done.</p> <p>Back in October 2014 <a href="https://econsultancy.com/blog/67447-the-economist-finding-new-readers-with-creative-programmatic-display/">The Economist ran a campaign aimed at driving new subscriptions among liberal ‘young progressives’</a>.</p> <p>It was felt that this demographic saw the publication as one that was only read by the corporate elite.</p> <p>The task for this campaign was to target 650,000 unseen prospects and allow them to discover The Economist’s progressive liberalism for themselves.</p> <p>Using the rationale 'There is nothing more provocative than the truth’, the aim was to show user relevant content that would help alter their view of the publication.</p> <p>Using subscriber data, the marketing team built seven lookalike segments that reflected the different sections of The Economist. </p> <p>More than 60 executions were created, many in near real time (from its live newsroom). </p> <p><img src="https://assets.econsultancy.com/images/0007/6972/economist_programmatic.png" alt="" width="640" height="401"></p> <p>Economist ads led with topics like the CIA's use of torture within hours of the story breaking.</p> <p>Having piqued reader curiosity, The Economist not only wanted the prospect to read the related article, but to read yet more targeted content (knowing it takes four to five articles before a prospect considers subscription).</p> <p>Ads pulled readers directly through to The Economist bespoke content hub. On serving the next article likely to be of most interest, the reader was nudged to register and, ultimately, subscribe.</p> <p>From a media budget of £1.2m, the campaign successfully got 3.6m to take people action, sample The Economist in context, and become re-targetable contacts.</p> <p>A campaign ROI of over 10:1 was achieved from the initial revenue stream brought in by these prospects.</p> <h3>So...</h3> <p>The increasing reliance on machine-driven ad buying certainly presents some interesting challenges for creatives.</p> <p>But those who suggest that programmatic might kill creativity have probably misunderstood how the technology works.</p> <p>Campaigns will always require a strong central idea and a compelling story that runs through all the various channels.</p> <p>Programmatic is really just a new delivery method that enables marketers to optimise different elements to make that particular message more relevant or appealing to that specific consumer.</p> <p>The Economist case study shows that creativity coupled with programmatic targeting can yield excellent results.</p> <p>The best campaigns are those that create an emotional connection with a brand, and as yet that requires a level of creativity that’s beyond even the smartest artificial intelligence.</p> <p>So although programmatic has begun to revolutionise ad buying and optimisation, it will be some time before we read an agency press release celebrating the new hire of a pair of creative bots.</p> <p><em>This article was originally published in Econsultancy’s <a href="https://econsultancy.com/reports/top-100-digital-agencies/">Top 100 Digital Agencies 2016 Report</a>.</em></p> <p><em><strong>To find out more, why not attend <a href="http://conferences.marketingweek.com/mc/programmatic/getwiththeprogrammatic">Get With the Programmatic</a>, Marketing Week and Econsultancy's one-day conference on 21st September in London, to hear from brand and agency experts.</strong></em></p> tag:www.econsultancy.com,2008:BlogPost/67931 2016-06-13T14:20:32+01:00 2016-06-13T14:20:32+01:00 Why all the excitement surrounding Facebook’s Dynamic Ads? Lauren Evans <p>Because they're starting to really take off.</p> <p>In fact, the growth in product-focused dynamic ads (originally called Dynamic Product Ads) is believed to be one of the factors that helped spend on social ads jump 86% year-on-year in Q1 2016 according to Kenshoo data (see chart).  </p> <p>And dynamic ads, coupled with growing Instagram advertising, helped push social spend in Q1 2016 higher than Q4 2015, going against the grain of typical seasonal spend patterns.</p> <p><img src="https://assets.econsultancy.com/images/0007/5969/facebook_dynamic_ads.png" alt="" width="464" height="233"></p> <p><img src="https://assets.econsultancy.com/images/0007/5970/facebook_dynamic_ads_2.png" alt="" width="464"></p> <p>So what is behind the increasing interest in this ad format?</p> <p>Here are three important things you should know about dynamic ads.</p> <h4>1. They were designed to make advertising easier for retailers who have a large product inventory</h4> <p>Dynamic ads were introduced in early 2015 to give retailers an effective, automated way to promote large numbers of products on Facebook.</p> <p>To use this ad format, advertisers have to connect their online product feed to their Facebook ad accounts.</p> <p>This allows Facebook to dynamically generate ads for individual products and show them to relevant audiences.  </p> <p>Product IDs, names, descriptions, landing page and image info is automatically pulled from the feed to build the ads, hence the ‘dynamic’ in the name.</p> <p><img src="https://assets.econsultancy.com/images/0007/5971/facebook_Walgreens_ad.jpg" alt="" width="800"></p> <p>Dynamic ads can support thousands of products and as long as your feed is up to date, any items that are out-of-stock will never be shown.</p> <p>You can choose to display a single product image or video per ad, or showcase a carousel of up to ten products within a single ad unit.</p> <p>You might use the carousel format to show a pair of shoes in several colours for example, or a selection of jeans in a specific price range.</p> <p>Typically we’ve found that between three and five related products in a carousel produces the best results.</p> <p>To date, more than 2.5bn unique products have been uploaded to the dynamic ads for Facebook format.  </p> <p>And as of April 2016 dynamic ads have also become available to advertisers on Instagram.</p> <h4>2. Retargeting and personalisation are a key part of their success</h4> <p>You can target dynamic ads at people’s interests, likes or demographic profile, as well as to <a href="https://econsultancy.com/blog/64980-put-your-email-list-to-work-facebook-custom-audiences/">custom audiences</a> extracted from your customer database or email lists.</p> <p>And what’s been really effective, is retailers using this ad format to retarget those who have visited their website or app.</p> <p>Facebook provides a custom audiences pixel which tracks the product pages a visitor has viewed, which products they’ve added to shopping baskets and what they’ve purchased.</p> <p>This allows advertisers to show people personalised ads based on their behaviour and interaction with their products online.</p> <p>So a retailer can, for example, target someone who’s looked at a specific product page and show them ads displaying different versions of the same or related products or offer incentives to help them convert.</p> <p>This kind of intent-based retargeting makes ads less intrusive.</p> <p>And is one of the reasons why we’ve seen clients generating click-through rates of 1.7% in Q1 of 2016, outperforming the overall social average of 1.0%.</p> <p>Facebook recognises the value of personalised behavioural targeting and has added new options to retarget based on stronger intent signals - such as when a visitor has gone to the same page a number of times or spent a certain amount of time there.</p> <p>You can also retarget based on the value of their last purchase.</p> <h4>3. They’re now available to travel advertisers</h4> <p>Facebook now believes that dynamic ads can appeal to more than just product advertisers.</p> <p>So in the first instance it has started making them available to travel advertisers to run more personalised retargeted ads.</p> <p>Initially a select number of travel advertisers are able to retarget hotel ads to online visitors who have browsed hotels or bought flights from their sites.  </p> <p>The ads can be dynamically updated with hotel availability and pricing for the booking window and the location someone has shown an interest in, for example.                                               </p> <p>Looking ahead you can quite clearly imagine other travel services that could be advertised in this way aligned to purchase intent.  </p> <p>For example car rental ads could be retargeted based on time and location that someone has browsed.</p> <p>And it would not be a big leap to envisage this type of dynamically retargeted ad working for other verticals besides travel.</p> <p>The danger with any kind of advertising is that it can seem invasive and an unwelcome interruption.  </p> <p>Dynamic ads are showing that it’s possible to sidestep this with high performing automated social campaigns that make ads meaningful and relevant to the audience.</p> <p><em>For more on this topic, read:</em></p> <ul> <li><a href="https://econsultancy.com/blog/67924-is-facebook-doing-enough-to-prevent-fraudulent-ads"><em>Is Facebook doing enough to prevent fraudulent ads?</em></a></li> <li><a href="https://econsultancy.com/blog/67879-facebook-s-busy-may-2016-provides-new-opportunities-for-marketers"><em>Facebook’s busy May 2016 provides new opportunities for marketers</em></a></li> <li><a href="https://econsultancy.com/blog/67603-what-marketers-need-to-know-about-facebook-s-livestreaming-push/"><em>What marketers need to know about Facebook's livestreaming push</em></a></li> </ul> tag:www.econsultancy.com,2008:BlogPost/67881 2016-05-26T13:42:32+01:00 2016-05-26T13:42:32+01:00 Seven big challenges facing healthcare marketers Patricio Robles <h3>1. Digital underinvestment</h3> <p>By some estimates, healthcare spending in the US is close to 20% of GDP, but healthcare marketers aren't funneling much of their marketing dollars into digital. </p> <p><a href="https://econsultancy.com/blog/67131-pharma-s-mobile-social-efforts-aren-t-as-healthy-as-they-should-be">According to</a> Deloitte Consulting, healthcare and pharma marketers spent just $1.4bn on digital ads, a figure that lags marketers in other industries.</p> <p><img src="https://assets.econsultancy.com/images/0006/8525/deloitte1.jpg" alt=""></p> <p>One of the consequences of this digital underinvestment is that this has created opportunities for third parties to become the go-to resources for consumers and physicians looking for healthcare information online.</p> <p>This is despite the fact that, in many cases, healthcare marketers' organizations have valuable, proprietary data and content.</p> <h3>2. Measurement &amp; metrics</h3> <p>While measurement is top-of-mind for most marketers, it hasn't been as important in healthcare because of the role marketing has played historically in healthcare organizations.</p> <p><a href="https://econsultancy.com/blog/67863-healthcare-marketers-making-progress-on-measurement-metrics/">That's changing</a>, and many organizations have adopted a number of sensible growth and brand-related metrics.</p> <p>But adoption of metrics related to stakeholder engagement and marketing communications, including patient satisfaction and paid media, are still undervalued, which can make it more difficult for healthcare marketers to "connect the dots."</p> <p><img src="https://assets.econsultancy.com/images/0007/5068/hccforating.png" alt=""></p> <h3>3. Market structure</h3> <p>Healthcare is not a typical market. In the US, few consumers pay directly for care and drugs; instead, third parties like insurers pay the bills and control where, when and how consumers access the healthcare system.</p> <p>For marketers, this presents a number of challenges. One of the biggest: even if you can persuade a consumer that your hospital provides the highest quality of care or that your drug is the most effective, the consumer might not be able to access your product or service.</p> <p>So in many cases, healthcare marketers find themselves playing a game of triangulation involving consumers and care providers, like hospital systems and physicians.</p> <p>For obvious reasons, this makes developing an effective marketing strategy a more complicated proposition.</p> <h3>4. The trust gap</h3> <p>The healthcare industry, and pharma in particular, doesn't have the best reputation thanks in part to <a href="https://econsultancy.com/blog/67590-can-targeted-social-ads-help-pharma-overcome-drug-pricing-controversy">controversies over subjects like drug pricing</a>.</p> <p>That has created a trust gap in which consumers as well as physicians are less likely to trust ads and information that come from healthcare marketers.</p> <p><img src="https://assets.econsultancy.com/images/0006/8526/deloitte2.jpg" alt="" width="635" height="467"></p> <p>To rectify this, healthcare marketers <a href="https://econsultancy.com/blog/67747-pharma-marketers-should-use-storytelling-to-improve-the-industry-s-reputation">will need to become more adroit at storytelling</a>.</p> <p>Unfortunately, as Alexandra von Plato, group president of North America for Publicis Healthcare Communications Group, has observed, "We neglect the origin story. Instead we run these dumb ads," referring to the ubiquitous and oft-parodied television ads promoting prescription drugs.</p> <h3>5. Lawmakers</h3> <p style="font-weight: normal;">Those <a href="https://econsultancy.com/blog/67227-ban-on-consumer-ads-could-make-pharma-s-digital-shortcomings-more-costly">"dumb ads" haven't made fans of physicians</a>, and the aforementioned drug pricing controversy has made pharma companies Enemy #1 for some lawmakers in the US.</p> <p style="font-weight: normal;">That could soon have a dramatic impact on healthcare marketers as lawmakers consider reigning in how healthcare marketers promote their wares to professionals and the public.</p> <p style="font-weight: normal;">Given how reliant pharma marketers in particular have become on television ads, and how underinvested they are in digital, greater restrictions on advertising could make life very difficult.</p> <h3>6. HIPAA</h3> <p>Consumer adoption of wearables is growing but healthcare marketers are struggling to take advantage of wearable opportunities.</p> <p><a href="https://econsultancy.com/blog/67074-is-the-healthcare-industry-prepared-for-wearables">There are a number of reasons for this</a>, but one might be HIPAA, the Health Insurance Portability and Accountability Act, which regulates the use of Protected Health Information (PHI).</p> <p>Healthcare organizations regulated by HIPAA <a href="http://www.healthcareitnews.com/news/are-wearables-violating-hipaa">must receive consent</a> from patients before their PHI is used for marketing purposes, and there are many grey areas, particularly as far as innovative technologies such as wearables are concerned.</p> <p>That means healthcare marketers realistically don't have the same flexibility as marketers in other industries that aren't subject to HIPAA.</p> <h3>7. Data</h3> <p>Out of necessity, healthcare organizations may be adept at dealing with issues related to data security.</p> <p>However, as a recent Econsultancy and Ogilvy CommonHealth report - <em><a href="https://econsultancy.com/reports/healthcare-study-organizing-marketing-in-the-digital-age/">Organizing Healthcare Marketing in the Digital Age</a> -</em> discovered, a majority are unprepared to deal with emerging data sources or to collect high volumes of data at speed.</p> <p>Furthermore, a surprising large number of organizations (44%) aren't even prepared to use their CRM data in marketing campaigns.</p> <p><img src="https://assets.econsultancy.com/images/0006/7696/Screen_Shot_2015-10-05_at_18.50.56.png" alt=""></p> <p>Because effective collection and use of data is increasingly integral to successful digital marketing, healthcare marketers' capabilities around data will need to improve.</p>