Technavio predicts significant trends in television ad-spending through 2019

Cross-Platform Marketing | Market Trend Report 2016 to 2019

ORIGINALLY APPEARED ON EXAMINER ON APRIL 3, 2016 BEFORE THE SITE WENT DOWN

With traditional media being replaced by digital streams, major agencies are starting to wonder if their advertising dollars are being put to good use. At a time where we pre-record our shows, only to fast forward through the commercials – or when we wait for them to show on-demand – we prefer short 15-20 second videos overdrawn out commercials that we can’t click to skip after so many seconds.

Because digital television allows agencies to redirect new customers to a call of action, digital television should be an obvious priority within advertising efforts. We are relaxing after a long day of work and school. Show us. Don’t make us do more work!

On the April 1, Technavio highlighted three key trends in market growth:

  • Data and Audience-Driven TV Advertising
  • Popularity of Programmatic Advertising
  • Real-Time Bidding

These trends are known as addressable TV advertising.

According to Soumya Mutsuddi, a lead analyst for Technavio, “Addressable TV advertising is gaining immense popularity in the US. It is helping advertisers reach out to their target audiences and generating great results in terms of ROI. Within a common program or navigation screen, this technique is capable of serving different ads or ad pods.

“These ads are targeted by demography, customer behavior, geography-centric, or through a self-selected individual household method. These ads are delivered through satellite, cable, Internet protocol TV, or set-top boxes.”

Addressable TV advertising is made possible across platforms, including digital television and traditional transmissions alike. The company predicts that TV ad spending will only increase with the aggressive political events and upcoming world competitions, such as the 2016 Rio Olympics, European Leagues, FIFA World Cup and the United States Presidential Election 2016. Trends in television consumption are already showing sharp increases at this time.

Taking a step back and looking at the overall picture, one can clearly see that, while targeting specific demographics, traditional media is actually quite broad-based and caters to multiple subgroups or to those, who have shared interest across demographic boundaries. Digital media, however, is customized to the user experience, targeting specific data points and providing tailored content to individual viewers. Digital TV advertising is then able to tap into psychographics on a much more powerful scale.

Traditional television platforms are starting to use these ideals in providing tailored experiences to local populations. Much like YouTube’s ability, for example, to allow users to broadcast their own advertising based on matrices, traditional television is driving local advertisers to engage in television broadcast in meeting their advertising needs. Limited budgets are even being catered to.

Cable companies have recently been adopting the technologies in optimizing online advertising strategies and synchronizing them with local broadcast television. This has been providing them with better visibility and awareness for brands that the local population is actually interested in.

Through programmatic advertising, the automated buying and selling of digital advertising is taking place. These data points are effective, because they are rolled out based on data collected online. But, they are also very efficient, because they save time and provide a great quality of service to the customer. Efficiency cuts costs to process for the company.

Advertising dollars are then optimized. Customers are getting a bigger bang for their buck. Increased quality in inventory allows advertising to allocate more budget for this form of advertising and actually grow their business.

Programmatic advertising has already seen the increase in spending dollars due to excellent placement, from 2014 to 2015. This is only expected to increase and become a primary choice for traditional advertising in a cross-platform type of world.

Finally, the advertising markets have learned that users not only want to enjoy a product or service, they want to have a good story that goes along with it. In marketing and branding, we learn that a good story will sell just about any product – especially to someone that doesn’t necessarily need it.

Trends in online purchases show we spend many of our hard earned dollars on bidding and eCommerce platforms such as eBay, Amazon, QuiBids, PropertyRoom.com and more. We have learned to trust bidding in real time and have learned to actually love it.

There is a certain rush, knowing you are getting a hard-to-find item or an item under its value – and trying to be the winning bidder, against hundreds of others across the country.

Real-time bidding has become that emerging trend in the US advertising market, and it allows us to interact with the brand, show our interests and allow them to gauge our demand. Real-time bidding has become so commonplace that it has “outpaced growth in other digital media platforms such as mobile and social in the past couple of years,” according to Technavio.

Because the digital infrastructure is so developed in the United States, we have become the largest market for real-time bidding in the world. Technavio expects real-time bidding to triple during the next three years and account for 50% of the United States digital ad spending market. This would include those doing business within the United States but are located elsewhere.

Because real-time bidding is an exciting interactive process, users will most likely spark awareness of bidding platforms through word-of-mouth efforts and businesses will be able to reduce advertising costs, model ads according to target audiences and provide better transparencies in ad delivery.

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A Case Study: Social Media Listening Needs to Be in Your Marketing Scope for 2016

Cloud Contact Center | TMC Net

Are you ready to listen, yet? As we enter 2016, our social media strategies had better include social listening. Otherwise known as brand monitoring, brands have been finding added value in social media by paying attention to what their enthusiasts have to say.

Whether seeking validation for our future marketing campaigns or looking to improve product delivery, brand monitoring has been benefiting brands across the web for some time now. Business 2 Community recently broke down ten ways social listening can benefit your business. As brands improve the customer experience, we need to improve our customer service strategies, as well. How else can we improve customer service without getting to know our customers intimately?

In early 2015, a telecommunications company (name withheld) lost many customers who were no longer locked into a two-year agreement, thanks to horrible customer service techniques. Not only did their service fall short of expectation, but they faced multiple overcharge and device failure – gaining the brand a bad reputation.

In many cases, refunds were in order for customers spending hours of talk time with customer service, repeating their nightmare to representatives, while pleading to be heard. They often received no follow-ups and were therefore never refunded.

As one of the top three service providers in the United States, they began losing the favor of a loyal fan base. On top of this, potential customers wanted no part of what the brand had to offer. We saw botched marketing campaigns. ROIs suffered.

Social media can be a son of a gun when it comes to marketing to the masses. Every campaign initiated via social media was flooded with negative feedback. Social commenting and storytelling put the brand into overtime and urged them to hire a cloud contact center that could fix their painful dilemma.

Per one negative comment, a minimum of two positive comments must be made to dissuade public opinion. In fact, a “no comment” is better than a negative comment. Negative commenting can bring irreparable damage to a brand via word of mouth experiences.

The brand didn’t listen to begin with. Social media led to further damage. But, when it was adopted as a tool, this brand found the power of social media to be beneficial in repairing their image. It totally turned around the experience for millions of customers, who have since been returning to the network and bringing friends and family with them.

Once the brand began listening, they publicly showed concern with the customer experience – earning back brand trust, bit by bit. They also learned what can be done to improve their brand and what the customer needs.

They learned that towers weren’t feeding devices the way that they should be; and customers were paying for services that they weren’t receiving. They learned that existing contracts with television providers were causing damage to service potential. This led to expedited contracts in fulfilling service plans. They were going to continue losing customers and owe for unfulfilled servicing of their plans.

Because of social media, they were able to identify common issues amongst a network of users. They also learned that their outsourced call centers weren’t living up to the expectations that they once had.

They avoided a PR catastrophe by simply listening. They were protected against competitors, who could easily capitalize off of their weaknesses. With a website that showed nothing but ways a customer would benefit from service, the full picture was gained through social media access. Competitors monitoring this brand could have easily intercepted customers by enacting social listening strategies and jumping into the conversation.

Listening and intercepting the conversation halted “bad mouthing” to friends and family, further allowing the brand to dissuade the conversation. They now control that conversation. This has allowed them to gain new customers. Positive experiences continue the flow of incoming sales leads for the brand and has been the turning point in major decision-making.

Since this experience, this company has become extremely social savvy. They have been showing appreciation for their consumer bases, making them feel special through social sharing of user-generated content and by joining in the fun with memes that their customers can appreciate.

They have been able to leverage key advocates and supporters, influencing new audiences for the better. With new product and service lines, plans have been maximized to better meet customer needs and provide consumers with the exact product that fits their lifestyles… especially those niche lifestyles… all of which lead to brand tenure and continued loyalty.

Social listening is very important and needs to be implemented immediately. If you’re not engaging in some form of brand monitoring in 2016, you will most likely fall behind. 

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