Category Archives: digital media

The Rise Of The Machines

One of the things I do to amuse myself when the weekend weather isn’t cooperative is to play video games.  I’m almost done playing the Mass Effect trilogy, which I highly recommend.  The games’ story revolves around a galactic war between biotics (humans and other species) and synthetics – machines, basically.

I flashed back to the game as a dozen articles about programmatic media buying came through my news feeds.  I don’t think it’s a shock to any of you to read that media buying has been transitioning from the personal, relationship-based business in which I grew up to programmatic.  People don’t talk to one another in today’s media buying and selling business: machines do. The days (and nights) of long lunches, emailed proposals, phone calls on Friday afternoons to sell out the weekend, and the entire one-to-one negotiating process have become mostly a memory.

I get it.  Programmatic is far less labor-intensive and a lot more efficient than the way I learned to sell media.  Efficiency, however, isn’t the total story and as the machines take over quite a few other things get lost.  The biggest one in my mind is transparency.  In many cases, the current media buying platforms primarily provide breakdowns of networks, and total schedule dayparts, and only after the campaign is complete do you see what has transpired and individual spot affidavits are shared.  Clients (the people who pay the bills, after all) are spending big chunks of their budgets on a plethora of middlemen, each of whom extracts their little pound of flesh for touching the buy.  It’s common for a third or more of the buy’s budget going to pay for services rather than media.

The biggest issue I have, frankly, is the loss of context.  Buying has shifted to buying audience delivery from buying based on content.  The machines buy and sell cookies, basically.  Those cookies might enable the buyers and sellers to learn quite a bit of information who is on the other end but they don’t add context.  Does that matter?  Indeed it does.

“While it certainly offers the opportunity to reach audiences more efficiently, our research shows that advertisers can’t ignore the strength of the publisher’s brand as a fundamental part of the ad experience and overall effectiveness of the campaign.”  That’s a quote from chief marketing officer and chief client officer at Millward Brown Digital as he reported on a study they had done.

According to Millward, as the “Brand Score” went up, so did the fit of advertisements, the consumers’ enjoyment of the ads, the trust consumers placed in the ads and the usefulness of the ads. Millward based its ratings on behavioral and attitudinal data collected about the consumers that visited the 44 sites during February 2014.

It’s not just about getting the right message to the right people at the right time.  It also involves the right place (read site/program).  I think that takes a human touch.  While beer ads make sense to a young male, those ads on a page containing “beer” and “drinking” keywords might also be a report of a car wreck due to drunk driving.

The human touch in media buying alerted us to when an episode might have subject matter that’s wrong for our ad. Buying audiences without regard for the show they’re watching or site they’re reading is allowing the machines to win at the expense of our marketing.  As the guys who spent the weekend battling them, I say no.  You?

 

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Socially Devoted To You

The folks at Socialbakers do a quarterly study on how well companies respond to consumers via social media.  Here is how they put it:

Socially Devoted brands understand the shifting paradigm of customer care. They know that the most responsive and dynamic audiences are on social and those people want responses to their questions and issues.

If your brand responds to at least 65% of audience questions on Facebook and/or Twitter, you qualify as Socially Devoted. The benefits of Social Devotion are clear – Socially Devoted brands get 3.5 times more Interactions than their less-responsive counterparts.

Needless to say, some brands are really good at this but many are not.  Sadly, US companies ranked near last globally in responding to customer inquiries on social.  What I found surprising was that it wasn’t the business sectors or brands – airlines and telecommunications to name names – that were at the bottom of the responsiveness heap.  Actually, they ranked near the top.  Instead, e-commerce – the last sector one would think would ignore the social space – was down towards the bottom.

What do they mean when they say the US ranked near last?

The US ranked 33rd out of the 37 countries, with US brands responding to only 18% of customer questions. Compare this to the average global Question Response Rate (QRR) of 30%…Of course, some US brands are providing great customer care on Twitter. A couple of examples are T-Mobile, whose @TMobileHelp handle received nearly 11,000 questions and responded to 75% of them, and Nike’s local branches (@NikeSF, @NikeBoston, @NikeSeattle, etc.), which maintained QRRs anywhere between 76% and 84%. But many major companies, like Domino’s Pizza (@Dominos) and Walmart (@Walmart), had low QRRs on Twitter: only 13%, and 18% respectively.

The US ranked 23rd out of the 24 countries — beating only India in our rankings. US brands had a response rate of 59%, compared to the average of 74% for all brands globally. US brands on Facebook with poor customer care included Nationwide Insurance, Wendy’s, and Samsung Mobile USA with response rates of 7%, 20%, and 18% respectively. Brands on Facebook with great customer care included many telecom companies — like Sprint with a QRR of 84% , T-Mobile (87%), AT&T (68%), and Verizon Wireless (72%).

You can see if your company has been included in their rankings here.  It might be easy to blame the poor response rate on short staff but clearly when one company can handle 8,000+ questions in 90 days (meaning they answer 91 out of 122 questions every day), it’s not an impossible task.  So why isn’t every company doing that?  My guess is that it’s a matter of priorities and customer-centric thinking.  Maybe it’s also that they still see social channels as megaphones and not telephones.  What’s yours?

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Getting Chosen

You probably have been spending a lot more time interacting with your mobile device over the last year.  You’re not alone, and much of that interaction takes place through apps.  I don’t know about you but I have a lot of apps installed (and even more that I’ve used and uninstalled over the years).  I just checked my phone and there are 131 app icons.  Putting aside that there’s probably a dozen or so that are pre-installed crapware from my carrier and the handset manufacturer (I ranted about that previously – you get a reprieve today), that’s still a large number of apps competing for my attention.  There are hundreds of thousands more in the app store too.

My reality, and I’m guessing yours too, is that I only use a couple of dozen of them on any sort of regular basis.  Turns out we’re not alone, at least according to the good folks at Nielsen:

Despite the increase in choices, the number of apps used is staying the same. A recent Nielsen analysis found that on average, U.S. smartphone users accessed 26.7 apps per month in the fourth quarter of 2014—a number that has remained relatively flat over the last two years. And consider this: Over 70% of the total usage is coming from the top 200 apps.

However, while there appears to be a consumer threshold to the total number of apps people are willing and/or able to actively use during the month, the time they spend engaging on those apps has increased. In fact, the monthly time spent per person has increased from 23 hours and two minutes in fourth-quarter 2012 to 37 hours and 28 minutes in fourth-quarter 2014—a 63% rise in two years! So the reward for being one of the chosen apps is heavy engagement by the user.

It appears our app usage mirrors our TV usage.  While we might have access to hundred of TV channels, most of us only watch 21.  As has happened with TV, the engagement deepens with the chosen few.  The challenge for any business is to become one of those two dozen.  The means making the potential user base aware that you are the best solution to their problem, whether it’s how to amuse one’s self or how to get to a place you’ve never been or how to get clothes that are reasonably priced and fit well.  It means avoiding the dreaded “uninstall” – that action that takes place whether you’re an app or not when a customer moves on since you didn’t deliver on the promise made.  Maybe you were boring.  Maybe you were bloated with ads.  Maybe you tried to sneak in a lot of extra charges.  Those things aren’t limited to apps but they’ll lose you the “chosen” status much of the time.

What are you doing to be chosen today?

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