Convergence of media and mobile telecommunications - effect on advertising outcomes

This document is offered compliments of BSP Media Group. www.bspmediagroup.com

All rights reserved.

http://www.bspmediagroup.com

http://www.bspmediagroup.com

February 2016

Convergence of media and mobile telecommunications - effect on advertising outcomes

International Forum on Advertising for Multi-Platform Digital Media 2016

Copyright© 2013 Mobile Telephone Networks. All rights reserved

… is key for organisations

wishing to remain profitable and

successful

… when everyone is spending

less and cutting costs while

looking for greater, lasting

impact

… is also about excellence and

creating lasting quality


… is not a silver bullet



Media convergence is the interlinking of computing and other information technologies, media content, and communication networks as the result of

the evolution and popularisation of the Internet.Source: BusinessDirectory.com


Source: BusinessDirectory.com

Advertising is the activity of producing information for promoting the sale of commercial products or services.


In the world of marketing and advertising, everyone strives for one thing - to stand out from the crowd

What is convergence – different elements & brief history

Implication of convergence for advertising

Key outcomes

Case studies

Strategies and process

Opportunities, challenges and lessons learnt


What is convergence – different elements & brief history

Newspapers have always been the primary medium of journalists since 1700, with magazines added in the 18th century radio and television in

the 20th century, and the Internet in the 21st century


1776: political ads appeared encouraging enlistment

1882: the first electric sign is lit in New York’s Time

Square

1892: Direct marketing is born when Sears sends out 8000 handwritten postcards

and receives 2000 orders.

1920: in his garage in Pittsburgh, Frank Conrad founds KDKA, the world’s

first commercial radio station

1941: the first official TV commercial runs for BulovaWatch, aired just before a

baseball game

1963: David Ogilvy ushers in the modern advertising age

with the quote: “The consumer isn’t a moron; she

is your wife.”

1994: HotWired site launched with the first banner ads from AT&T,

Sprint, Volvo, and others.

1995: the first keyword ad “Golf” is created by Yahoo!

1997: the first mobile ad is launched by a Finnish news provider offering free news

headlines via SMS, sponsored by advertising.

2006: Youtube launches as we see the birth of video

advertising.

2006: Twitter’s real-time global community make

viral marketing / advertising fast and free.

2007: Facebook introduces the concept of behaviour-

based advertising by specifically targeting users’

social interactions.

Source: infographic from InfoLinks


http://www.coca-colacompany.com/


Signs & billboards• Hand-painted image was projected on a

series of paper panels that made up the

billboard

• Painted billboards gave way to graphic

reproduction

• A digital billboard is a billboard that is

created from computer programs and

software

• Mobile billboards are able to go directly to

their target audience

Strengths Limitations

excellent reach (mass audience) high frequency geographic flexibility high impact message quality reproduction works well with other media good for product

awareness/recognition message has a fairly long life reaches audience 24 hours a day

creative limitations – instant visual impact must be made

lack of target market selectivity production costs are high no editorial support environmental clutter (many displays in one place) weather can restrict communication of the

message cannot deliver sound and motion cannot provide details


Leaflets & flyers

1973

• Introduction of the printing press in 1450

• Messages in newsletters, leaflets and flyers mass

produced and could reach large volumes of people

• Introduction of colour printing in the 1970s made

leaflets and flyers even more appealing.

• Through the use of links and QR codes, flyers and

leaflets are becoming integrated cross-channel

strategies in order to promote products and services


audience selectivity – can reach precisely defined targets

high reach geographic flexibility creative flexibility advertiser control over circulation and

quality of message consistent quality of reproduction no competition with other ads or editorial

content can provide details

absence of environmental support (editorial content)

not a prestigious advertising medium (“junk mail”)

short life potential delivery delays


Newspapers

Source: www.historicpages.com, Erin Marchesan, https://www.mediamiser.com/resources/pr-glossary/strengths-limitations-of-various-media/

• Newspapers primary medium since 1700’s


daily delivery – frequency opportunity geographic selectivity some special interest selectivity intensive coverage of specific geographic

market wide range of editorial material aimed at

a broad audience great flexibility in ad size complex information can be

communicated pass-along audience in household credibility of print in general can read at leisure portable

short life low quality colour

reproduction not demographically selective cannot deliver sound and

motion messages compete with one

another

http://www.historicpages.com/


Magazines• Magazines added in the 18th century

• A publication similar to today’s magazines (various

themes and several authors) was published in

1672


audience selectivity/specific audience targeting durability – long life excellent editorial climate – loyal readers –

transfer of credibility artistic variety – bleeds, gatefolds, inserts, pop-

ups, spreads good secondary readership (pass along

audience) inside and outside home high quality color reproduction complex information can be communicated credibility of print in general generally attracts affluent and influential

readers read at leisure portable can be read inside and outside the home urban and rural

long lead time required cannot deliver sound

and motion low frequency and low

penetration levels messages compete

with one another comparatively

expensive




Radio

• The first paid radio commercial was developed

by American Telephone and Telegraph (AT&T) in

August 1922


good supplementary medium selective audiences great flexibility universal coverage short lead time production can be free inside and outside home urban and rural reaches motorists messages are personal messages stand alone portable prime source of local information

short life no visuals cannot provide details no motion




Television

• Black and white

• Colour

• HD, 3D

• Surround Sound

• Flatscreen

• Widescreen


allows for active demonstration of product

large national audience reach (network) large local audience reach messages stand alone some audience targeting prime source of news high impact spectacular medium – sound, animation,

motion, colour etc.

messages have short life plus time shifting

long lead time cannot provide details not portable high production costs most stations urban




Internet, social media & websites• The first ever spam email to annoy email owners

was sent on 3 May 1978. The recipient list was

400 users and was taken from Advanced

Research Projects Agency Network (considered

to be the precursor to the Internet)

• Global Network Navigator was the first

commercial website to sell a clickable ad in 1993

• In 1995, Yahoo did the first keyword based

advertisement.


Target specific demographics of internet users

Able to use graphical ads rather than just text

Ability to easily measure which campaigns are effective and which ones are not

Getting listings online takes longer due to limited space available

Generally require longer term commitment




Mobile application

• 1870’s, Elisha Gray and Alexander

Graham Bell created the telephone.

• Before the creation of this invention

people were communicating via

telegraph.

• In the 1990’s the mobile phone evolved

• Apps started appearing in 2008


Instant results Easy to work with Convenient to use Direct marketing Tracking user response Huge viral potential Mass communication made easy Niche not highly concentrated Microblogging benefits

Platforms too diverse Privacy issues Navigation on a mobile

phone may be difficult




Different media has inherent strengths and weaknesses

1. Low reach vs. high reach.

2. Low frequency vs. high frequency

3. Low targeting vs. high targeting

4. Low cost-per-impression vs. high cost-per-impression

http://www.marinij.com/article/ZZ/20101119/NEWS/101118853#disqus_thread (Independent Journal)

http://www.marinij.com/article/ZZ/20101119/NEWS/101118853#disqus_thread


Implication of convergence for advertising


Implication #1: disrupt old business models, using multiple options to authentically connect with their customers in the digital space

Big data & insights

• Enable hyper-personalisation, where each consumer's experience of the brand is tailored to their interests and behaviour.

Applification

• Not a bolt-on strategy, true integration is the key.

• Branded mobile and social apps around highly niche topics and events e.g. DSTV's Remote app, FNB's Find Steve Facebook App, or Castle Lager's Braai Nation app etc.

Content and advertising

• Create engaging content and digital brand

• Brands investing in social data analytics to understand what content their consumers want training their staff to become brand ambassadors

Instant messaging

• Engage more effectively on these IM platforms

• Evidenced by several brands owning portals on MXit, and connecting with consumers on the Naspers owned IM platform WeChat.

Consumer privacy

• As consumers engage more in the digital space, exponentially more data will be collected

• This data provides detailed pictures for brands about who their customers are and what they want. It allows organisations to connect and engage with consumers in optimal ways.

Source: David O'Neal, https://mconvergence.wordpress.com/2011/12/12/media-convergence-opportunities-ans-challenges/

http://www.wralworks.com/author/doneal/


Implication #2: Shopping has become much more than simply walking into a store. Multiple, integrated channels of retail, empower the consumer by providing greater choice in all areas of the buying process.

http://www.business2community.com/consumer-marketing/why-do-multi-channel-consumers-buy-more-0575693#m2OXGGAjG5hVVLmj.99

Multi-Channel Consumers Buy More

• Recent research has shown that multi-channel consumers actually buy more.

• In the clothing, home and electrical sectors multi-channel consumers spend, on average, 82% more that their single-channel counterparts.

• In the electrical sector, 62% of all purchases are multi-channel purchases and on average these multi-channel consumers spend £238 per transaction, compared to the average of £160 spent by a traditional single-channel consumer.

Empowered and Engaged Customers

• Power has shifted from the retailer to the consumer, creating the idea of ‘me-tailing’.

• Consumers have endless amounts of information to help them make their purchase.

• They can also shop anytime, anywhere and any way they choose.

• Multi-channel retailing has created a buying method to suit any customer.

• It caters for the indecisive, the gadget-loving, the extremely busy, the keen high street shopper and the night owl internet surfer.

Increased spending

• Multi-channel consumers are more engaged and better informed. They know the products; they’ve seen them online and in store, read reviews and guides, so when it comes to actually making a purchase, they are confident that they’ve made the right choice.

• This confidence leads to them either buying more or choosing something more expensive, because they’ve seen the benefits.

• The positive shopping experience encourages consumers to buy more.

Multi-channel retail

• In addition to price, consumers want: choice, the right shopping experience, a trusted brand, good returns policy, information and resources as well as reasonable delivery costs.

• Effects of multi-channel retail are similar to that of advertising - multi-channel consumers look more and as a result buy more.


Implication #3: shift in how organisations use media for entertainment, news and information at the cost of traditional media outlets e.g. newspapers, etc. The Internet has become the major driver of this change.

Cite: Advertising Trends: Digital Convergence (2016). From Advertising Tutorial. KnowThis.com. http://www.knowthis.com/advertising/advertising-trends-digital-convergence

Social Media

• Significant change in media usage is rapid expansion of social media. Venue for social exchange and where news and information is obtained.

User Generated Video Sites

• Now anyone can produce videos and post for the world to see. Resulted in advertising choices for video production no longer limited to television programs.

Small Screen Video

• Streaming of video over wireless networks to small, handheld devices, including smartphones. With rapid growth of small screen devices, likely that this format for advertising is poised for growth.

Mobile Device Apps

• Apps are proving to offer rich new ground for advertisers. Improvements in video performance and data speeds opportunity for changing static advertising to “in app” video ads.

RSS Feeds

• Popular with news websites. New information posted on a website can be delivered instantly to anyone who has signed up for delivery. The information sent to feed subscribers can include inserted ads.

Online Gaming

• As Internet and mobile network connections increase in speed, gamers expected to shift away from games loaded on local computers to access games online. Opportunity for advertisers to insert special content, including product advertising, within game play.


Proximity

•You must be where your customers are.

•Multichannel customers spend 3 to 4 times more than single-channel customers do.

Buying process control

•There’s no doubt that customers today have much more control over the buying process.

•Due to proliferation of available channels, customers have more choices than ever when it comes to how they want to get information.

Channel variety

•More ways to reach customers – both in terms of number and variety of channels.

•As the number of channels continues to rise – and it will – the need to embrace multichannel marketing will become not only a good idea, but a critical one.

Profitability

•A multi-channel approach may be the best way to get profitable results for businesses.

•Average consumer go through at least 6 channels before they finally make the decision to purchase.

•Globally, there is a 137% increase in multi-channel digital marketing and up to 500% increase in brands using display, mobile, social and video marketing simultaneously.

Increased conversion rates

•Brands moving into a multi-channel digital marketing strategy are achieving up to 300% improvement in ROI from their advertising efforts.

•This resulted from a 24% increase in conversion rates as more targeted customers see a campaign’s ads from multiple channels instead of just one.

Implication #4: importance of multichannel marketing

Source: Harvard Business Review 2015


Key outcomes


http://viralmarketingmonsters.sharedby.co/share/tyX6Fb

Online advertising is outperforming traditional ads


Projected share of global adspend

Channel 2015 2018

Television advertisement 37.7% 34.8%

Desktop online advertising 19.9% 18.2%

Mobile advertising 9.2% 18.4%

Newspaper advertising 12.8% 10.1%

Magazines 6.5% 5.3%

Outdoor advertising 6.8% 6.6%

Radio advertisement 6.5% 5.9%

Cinema 0.6% 0.7%

Source: ZenithOptimedia


Case studies


Marks & Spencer

• Prior to launch, Marks & Spencer conducted extensive testing, and numerous customer journeys were designed based on differing goals, needs and familiarity with different technology, considering both in-store and personal devices.

• The kiosk was one of the first 32” large format, interactive, transactional touch screen applications, which allowed customers tocomplete large screen orders as well as browse through the entire womenswear and lingerie catalogues.

• Customers could see full product details, read product reviews, see alternative images and discover online stock availability.

• Style advisors were also equipped with iPads, which provided the same virtual basket and scanning technology of the kiosk, but more mobility allowing an order to be placed anywhere in the section, and an alternative for those less keen to self-serve.

• Customer reaction to the concept was extremely positive and early sales figures suggested there was also a halo effect of seeing the best of Marks & Spencer presented in such an engaging way in local stores.

• Through the use of immersive kiosks and iPads in-store, Marks & Spencer introduced a sell-by-sample concept, which allowed customers to see the best flagship store womenswear ranges in smaller stores, where previously they would have had to travel to a larger store.

• The product samples were supported by large screen interactive applications that showcased the latest trends and allowed customers to build outfits and place orders while being assisted by specially trained advisors. The initiative aimed to drive awareness of Marks & Spencer’s brands.

Source: HubSpot, https://econsultancy.com/blog/62319-six-examples-of-effective-multichannel-marketing-campaigns/#comments


Financial Times (Essence)

• The Financial Times (FT) wanted to drive a younger audience to engage with its publication, and in partnership with Essence it decided that a multichannel approach was the answer.

• Research found that the path to purchase for the FT was longer than that of less expensive products, so a higher frequency of messages was needed.

• These messages were delivered through a mix of channels, including digital outdoor displays and video pre-roll through tablet devices to target commuters, display takeovers in offices and mobile video for the lunchtime audience.

• A sustained increase in post click & post impression subscriptions tracked and a sustained overall uplift in total FT weekly subscription volumes and increased site traffic.

• Visits doubled on the mobile site month on month.

• 82% average view completion of video media placements - this is quite a bit higher than then the industry average of 74%.



Unicef

• The team supported the display campaign with ongoing paid and organic search activity. Unicef then retargeted visitors to its site who showed high engagement levels but didn’t donate.

• More than three times the projected amount in donations through the UNICEF UK website.

• Cost per acquisition 4.5 times less than projected.

• Display prospecting campaign served to approximately 5m people, click through rate of 1.79% above the industry average of 0.1%.

• Unicef wanted to increase donations as part of a Christmas appeal for the children of Syria, so it teamed up with IgnitionOne to created an integrated, multichannel online advertising campaign using its first party data.



The clear lines between media, marketing and technology have blurred as organisations mix them together to create authentic customer experiences through creative campaigns


Strategies and process


Some key strategies

Know Your Targeted Audience

• With various marketing channels available, business owners only have a small window from which they can connect with targeted audiences. Knowing who your targeted audiences well and the various aspects that can influence their purchasing decisions will enable you to select the right marketing mix for your campaign.

Set a Balance Between Multiple Channels Available

• The key to success in a multi-channel marketing campaign is how effective you are in maintaining a good balance in your digital marketing mix, particularly in cost and resource allocations. Putting too much resources on one channel can affect the full effectiveness of your campaign.

Test the Effectiveness of Your Campaign

• It would be wise to test your campaigns by setting up control groups together with your multi-channel efforts. This way you will know the true effectiveness of your digital marketing mix and allow you to make adjustments as necessary.

Retargeting

• In a multi-channel digital marketing campaign, retargeting would be a very effective strategy in following through with prospective leads and generate conversions or even sales which may not have taken place the first time they visited your site, landing page or marketing channel.

• Digital marketing campaigns are effective in reaching out to a targeted audience and generate a favourable response that can convert them into leads or even customers. While each digital marketing channel is effective in their own individual way, business owners can generate better and bigger results through a combined, multi-channel digital marketing campaign that makes use of the best of what these channels can offer.

http://www.sas.com/en_us/insights/marketing.html


Some key strategies (continued)

Create and maintain a single view of the customer

• Having a single view of the customer is critical. That’s because today’s customers often interact with your brand in a variety of ways that involve more than one touch point. It is vital that you understand how your customers behave across all channels, at each and every touch point, and that you also understand each customer’s value to you.

• Your customer view must evolve. Customers change. Businesses change. Your customer view must change along with them. That means bringing in new data, refreshing old data, building new models, updating old ones, etc.

Establish a multichannel marketing platform

• Includes processes and technology to support:

• Campaign management, including capabilities for segmentation, workflow creation and campaign execution.

• Advanced analytics, including predictive analytics and campaign optimization.

• Advanced execution, including capabilities for content management, event triggering, real-time decision making and next-best-offer management for both inbound and outbound marketing programs.

• Response attribution, including the ability to perform marketing mix optimization, scenario planning and marketing attribution analysis.

• Digital marketing, including capabilities that expand marketing beyond traditional channels to newer channels, including the Web, email, mobile, video, etc.

• By establishing a multichannel marketing platform, you will be able to integrate traditional and emerging channels.

Create consistent customer experiences across all channels

• Customer experience is one of the most powerful competitive differentiators. And while the quality of the customer experience isimportant, consistency is equally important. That’s because your customers experience your brand as a whole, whether their interactions with you are online, in a store, over the phone, or some combination of these.

http://www.sas.com/en_us/insights/marketing.html


Getting it right: the processStep 1: Have a clear

understanding of who your target audience is

Step 2: Pick your channels

Step 3: Have a consistent look

Step 4: Create clear, consistent content that

can easily be adapted to suit different channels

Step 5: Ensure that your messaging is integrated

Step 6: Make sure your marketing

teams/agencies are working in sync.

Step 7: Track your campaigns


Opportunities, challenges and lessons learnt


Customer engagement with our organisation across multiple touch points were considered …

Social media Videos

Self-service kiosks

Self-service website

IVR

Online store

Web chat USSD & SMS Apps

Informational website

BillboardTV &Radio

Print media


Depending on the target market, map the media channels to the touchpoints

Existing Customers

Aware/Consider

Evaluate

PurchaseEnjoy

Promote

Bond

New Customers

Data analysis and insight

Social Discussion

Read Traditional Media Review

Read Blog Review

Twitter Follow

3rd Party Vendor Review

Facebook Status Update

Facebook Like Page

Suggest to a Friend

Create Review Video

Read User Review


Depending on the target market, map the media channels to the touchpoints

Existing Customers

Aware/Consider

Evaluate

PurchaseEnjoy

Promote

Bond

New Customers


1.Enhance the way customers experience media2. Enable audience to become “media producers”3. Audiences have become much more active participants in modern

media culture

Source: Future of Media Convergence


1. Lack of efficient strategy2. Acting on assumptions rather than research results3. Measuring the wrong elements4. Silo mentality – the enemy of multi channel approach5. Audiences are aggressively pursued by media companies6. Finding the right mix of channels7. Monitoring customer touch points8. Targeted and relevant messaging9. Highly choreographed campaigns10. Audiences complain about information overload and may be overwhelmed


In conclusion

In terms of advertising outcomes

1. Organisations that can create and sustain a single view on the customers based on their preferences, will be the industry’s futurewinners.

2. Understanding the customer and acting upon the insights is what makes converged campaigns successful.

3. Focus on the planning stage and make sure that teams across the organisation are willing to cooperate and share important data.

4. Selecting the right KPI’s is one of the major points on the road to a seamless converged campaigns.

Date post:	16-Apr-2017
Category:	Marketing
Upload:	benjamin-pius
View:	191 times
Download:	0 times

Convergence of media and mobile telecommunications - effect on advertising outcomes

Marketing