Tag Archives: Marketing and Advertising

Why Apple Improving Privacy Has Marketers Upset

Apple announced a bunch of new stuff yesterday including the release date of the newest version of their mobile operating system, iOS10. You can read about all of the enhancements here (or just about any other place on the interweb) but one thing you probably won’t hear about piqued my interest because it gets to the question with respect to ad blocking that we’ve pondered before here on the screed.

First, a little tech talk. Apple has something called IDFA – Identifier For Advertising – that they use instead of a simple UDID (your device ID) or a cookie (which don’t work well in the mobile space). It’s used to track you, serve you ads, and also for privacy controls. What they’re doing in iOS10 will change how the IDFA behaves. When you opt in to limit ad tracking, the IDFA will return a string of zeros, effectively opting the user out of advertising. It will also prevent the previously permitted “frequency capping, attribution, conversion events, estimating the number of unique users, advertising fraud detection, and debugging” uses of this ID.

Needless to say, many in the ad world are very unhappy. “Ad blocking is stealing” according to the IAB. Pretty harsh, but I get that it’s a reflection of the disruption in the attention/value equation that underpins much of digital commerce. Here is the thing, though. Other media, many of which were built on the same equation, suffer from ad blocking and yet have figured out other business models. One blocks ads on TV either by watching on a delayed basis and skipping through the ads or by changing the channel until the program returns. Way back in the ’70’s, my fellow TV execs cringed at the thought of VCR‘s and felt they would irreparably harm the business. That thinking was repeated when DVR‘s (now at over 70% penetration) came out. Both lines of thinking were wrong.

The same is true of radio. No one is thinking about removing the buttons from your car that make it easy to change channels, nor is anyone thinking taking away your TV remotes would be a good thing. Ad blocking in print is as easy as turning the page. There is research that found people only fast-forward through about half of all ads during playback, and other research has found that even fast-forwarded ads make an impression on viewers. Even so, the business model for TV has changed a lot, and “ad blocking” was part of the impetus for that.

Maybe instead of worrying about Apple (or consumers, for that matter) doing what they can both to improve the web and mobile experience and to protect privacy, those of us involved in the digital marketing ecosystem need to keep refining our business models and whine a lot less? What do you think?

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Filed under digital media, Reality checks

Meaningless Marketing

This Foodie Friday I want to talk about something I call “meaningless marketing” in the food industry although I think you’ll see that the principle behind the term holds true in any industry. Meaningless marketing is the use of words that really have no meaning. More importantly, in some cases, the words are used specifically because they might trick consumers into thinking they’re saying one thing when, in fact, they’re not.

Let’s use the term “natural” in the food business. One might read it on a package or a menu and think “this food is wholesome, healthy, and unadulterated.” Unlike many terms in marketing, “natural” isn’t regulated so in actuality the food in question can have artificial ingredients, preservatives, pesticides, and be made from GMOs. Not quite what the consumer is thinking, but exactly what the purveyor is hoping they will.

“Natural” isn’t the only meaningless phrase used in food marketing. “Delicious”, “Made With Whole Grains“, “A Good Source Of Fiber (or anything else)”, and “Low Sugar” or “Lightly Sweetened” are all other examples. As you might expect, I have issues with any form of deceptive marketing but I think when it’s done to induced people to consume unhealthy foods while the consumer thinks otherwise is pretty low.

The truth is that there is no “meaningless marketing.” It doesn’t matter what industry you’re in. People see and hear things and act accordingly. I realize that there is a responsibility on the consumer’s part to read the labels or to garner information from other sources, but if companies aren’t honest about that labeling, thereby making the consumer’s research more difficult, how can any of us call ourselves a consumer-friendly brand that acts in the customer’s best interest?

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Filed under food, Huh?

Shopping Until You’re Dropping

Today’s screed is mostly about shopping (or selling, I suppose). I read some results from a research report and I think you’ll probably share my thinking about what the data shows: more of what we already know.

In a recent study UPS and ComScore released a U.S. study revealing changes in consumer shopping preferences and buying behavior. A total of 5,000 U.S. consumers were surveyed. The results indicate consumers plan to research and purchase more frequently using their mobile devices, they are influenced by social media, and free shipping continues to drive purchasing decisions.

No real shockers, but as with any study there are some nuances to the findings that are instructive. Nearly everyone (93%) shops at small retailers and 40% of them wanted to support the small business community by doing so. 49% couldn’t find what they needed from traditional stores so they turn to more niche retail outlets. Better prices (57%) and selection (49%) are the top reasons for purchasing online after researching an item in-store, which to me smells like an opportunity for bricks and mortar. After all, while there’s no doubt online sellers don’t have the same cost structure as offline, they have other challenges that can level the playing field.

One thing is returns. When a purchase is made online from a retailer that has an online and physical store, 39% of consumers who make returns prefer to ship the product back while 61% prefer to return the item to the store. When making an in-store return, 70% purchase an additional item compared to only 42% who make a new purchase while processing an online return. I suspect that this “ease of returns” is a selling point for pure physical retailers. According to the report, only 62% of consumers are satisfied with the online returns process: 67% review a retailer’s return policy before making a purchase, 66% want free return shipping, 58% want a hassle-free “no questions asked” return policy, and 47% want an easy-to-print return label.

The study provides insight to help retailers increase sales. 48% of online shoppers said they ship items to the store, with 45% of those saying they made additional purchases when picking up their orders. Free shipping remains the most important option during checkout according to 77% of online shoppers. More than half (60%) have added items to their cart to qualify for free shipping.

Most of the above seems fairly intuitive, but it never hurts to have our own intuition supported by facts, does it?

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Filed under Consulting