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Marketing Maestros

New ANA/BrightLine Research: The Connected TV Opportunity

By Bill Duggan, Group EVP, ANA
Posted: Aug 31, 2015 10:00am ET

ANA and BrightLine teamed up to research how the overall ANA member community is using connected TV/OTT (over-the-top) devices. Connected TV means that a television is somehow connected to the Internet. This includes Smart TVs where the connection is built into the TV, or any IP-connected over-the-top (OTT) device/box like Amazon Fire TV, Android TV, Apple TV, PlayStation, Roku, or Xbox that brings an array of content apps directly to a TV screen. When viewers consume television content in this way, they become connected TV users. Here are the highlights of our learning: 

  1. Only 43 percent of marketers surveyed claim to be “very” familiar with connected TV/over-the-top (OTT). Meanwhile, the great majority (87 percent) are at least “somewhat” familiar.
  2. Only one in five (22 percent) responded that their company has engaged in connected TV advertising over the past year.
  3. Budgets are modest, as a little under half (46 percent) allocate just 1 percent or less of their total TV advertising budget to connected TV. Approximately half of current connected TV advertisers (48 percent) plan to allocate more of their TV advertising budget to connected TV in the next year. Funding is mostly reallocated from elsewhere rather than being incremental. Seventy-one percent of respondents shift funds from other TV activity, while 37 percent do so from digital.
  4. Audience targeting is perceived to be the top benefit of connected TV, cited by 50 percent of the total sample of respondents. Both users and non-users recognize the benefit of audience targeting. With connected TV, television buyers can target audiences on the same level as their digital counterparts.
  5. The top barriers preventing greater spending on connected TV among users are measurement questions and low penetration/small-scale audience.
  6. Among those respondents whose companies are not currently engaged in connected TV advertising, the top barrier is lack of familiarity. Of those not currently engaged, 13 percent intend to do so over the next year, while 59 percent are not sure.
  7. The large majority of total respondents (71 percent) believe connected TV is an opportunity for the television advertising industry. Those currently engaged are extremely bullish on it, with 89 percent believing that connected TV is an opportunity. Reasons most often cited by respondents for identifying connected TV as an opportunity were targeting and following viewer behavior.

The Programmatic Black Box

By Bill Duggan, Group EVP, ANA
Posted: Aug 19, 2015 9:00am ET

Programmatic buying — defined by AdExchanger as “the automation of media buying and selling processes and decisions, enhanced through data” — has great promise. Benefits include efficiency (lower CPMs, faster processing speed), targeting, effectiveness, scalability, and ROI. Programmatic media is the new reality, is big, and is getting bigger. Programmatic has expanded beyond desktop digital display to mobile, video, television, radio, out-of-home, digital place-based media, and print.

However, there are transparency issues with programmatic. The supply chain between the advertiser and the publisher is complex and murky. It’s been called a “fog” and a “black box.” The opacity of programmatic buying is costing advertisers money — and likely costing publishers money too. Below is a simplified view of the programmatic supply chain (source: AdFin).

Given the multiple intermediates, there is a lack of transparency — especially financial transparency — in the programmatic buying process. Various industry experts estimate that for every $1 invested by an advertiser in programmatic buying, only approximately $0.40 gets to the publisher. The remaining $0.60 is dispersed across the various intermediaries.

Some pieces of the supply chain add lots of value, others don’t. Low-value intermediaries prey on those who don’t investigate. I’ve heard experts claim that some marketers pay as many as three intermediaries for the same service.

So what should marketers do? Knowledge is power. Marketers should ramp up their programmatic intelligence.

The foundation of understanding programmatic is understanding the programmatic supply chain. Ask about the role of each player in the process. Such a long supply chain means there are numerous intermediaries of intermediaries. Advertisers need to talk to the tech providers. Know the partners of your partners. Inquire about the flow of money between working dollars (to the publisher) and non-working dollars (to the various other intermediaries).

As greater transparency occurs, savings can be realized for marketers and publishers, which would optimize the promise of programmatic buying.


For more on the issu
es surrounding media transparency, and what’s being done to alleviate them, read this month’s ANA magazine, which covers the topic in depth and features the perspectives of Bill Koenigsberg of Horizon Media and the 4A’s, Jon Mandel of Dogsled Enterprises, Douglas J. Wood of Reed Smith LLP, Dave Morgan of Simulmedia, ANA Chair Tony Pace, Bob Liodice of the ANA, and Marc Pritchard of Procter & Gamble, among others. 

Read ANA magazine here



Become an Agent of Change

By Lisa Guhanick, vice president of the ANA School of Marketing
Posted: Aug 17, 2015 12:00pm ET

Disruption is simply a matter of choice. You can be disrupted and constantly play catch-up while others rule the market, or you can be the disruptor and set your competitors scrambling.

However, in order to effect change, you need to take a new approach to doing business, adopt a new mental model that fits today’s consumer, and then lead your organization toward implementation. To do this, you will need a strong plan and a clear vision to halt your company’s inertia and move the organization in a new direction, but it’s not impossible. 

In a recent HBR article, Jerry Wind, professor of marketing at the University of Pennsylvania’s Wharton School and an ANA instructor teaching Business Transformation Leadership for CMOs (September 16, in New York, N.Y.) discusses one such paradigm shift called co-creation, a new business model based on a network of customer involvement in creating products. “… by exploiting new digital technologies, firms like Apple, Lending Club, and AirBnB have made customer co-creation of value central to their business models and in doing so now rank among the world’s most innovative and valuable firms. Our research indicates that companies that make their customers partners, and share the value created, lead the pack on revenue growth, profit margins, capital efficiency, and enterprise value,” the article says. “By leveraging customer networks and their tangible (e.g. homes and cars) and intangible (e.g. expertise and relationships) assets, firms can gain these advantages of the Network Orchestration business model.” 

Media Transparency: What’s a Marketer to Do?

By Duke Fanelli, chief marketing officer at the ANA
Posted: Aug 14, 2015 9:00am ET

When it comes to the current industry upheaval surrounding media transparency, specifically media rebates, there is no shortage of finger pointing coming from both agencies and marketers. Speculation abounds that the rebate revelation is behind the current onslaught of agency reviews, the continuing breakdown in agency and client trust, and, as some marketers have suggested, the result of pushing agencies for increasingly lower fees. The media rebate issue became headline news following a scathing and very public unveiling by Jon Mandel, former CEO at MediaCom, of media rebate practices during a presentation at the ANA’s Media Leadership conference in March.

The issue sparked such debate and accusations that earlier this year the ANA and 4A’s created a task force on media transparency comprised of top marketers and agency leaders. At the time the task force was announced, Bob Liodice, ANA president and CEO said, "We are genuinely pleased that the leaders of our industry recognize that transparency concerns — real and perceived — need to be addressed and mitigated. Media transactions have become increasingly complex, and our priorities must include recommended practices that enhance the understanding of the transaction processes."  

In June, to more fully understand the issue and identify solutions the industry can rally behind, the ANA issued an RFP to identify a third-party organization that could conduct a thorough and objective analysis of all media transparency issues impacting both marketers and agencies.

The August issue of ANA magazine takes a deep dive and hard look at the topic of media transparency and media rebates in the cover story, “The Eroding Cliff.” While the industry works toward a solution to its transparency challenges, the article points to some immediate steps marketers should consider. They include:

For more, read “The Eroding Cliff” and find additional recommendations on what to do right now in the “Thinking Clearly” sidebar, on page 6.

Let us know what you think of this month’s magazine. We want to hear from you.

Something’s Stirring

By Andrew Eitelbach, senior manager of marketing and communications
Posted: Aug 13, 2015 1:30am ET

Whether you know it or not, the marketing industry faces what could be a major issue. Rearing its head earlier this year during a presentation at the ANA Media Leadership Conference, the topic of media transparency — or more accurately the lack of transparency in media buying and the obscured financial arrangements potentially lurking therein — has tinged marketer-agency conversations ever since.

The problem and how we overcome it, which are outlined in the cover story of this month’s ANA magazine, are of critical importance to the industry. Though the extent of the problem is still unknown, many believe this to be a make-it-or-break-it situation — a point of no return. In fact, to quote the article, Kamran Asghar, president and co-founder of Crossmedia, "believes the industry is at 'a very intense crossroads' and anticipates the system, as it currently exists, will collapse in the next three to five years.”

Getting this right is crucial, and something the ANA, along with a number of industry leaders, is working to solve. Read this month’s cover story, “The Eroding Cliff,” to find out how.

Also in this issue:

We want your feedback. Let us know what you think of this issue. Leave a comment here or contact the editor, Andrew Eitelbach, at aeitelbach@ana.net.

Give Us Your Feedback

By Andrew Eitelbach, senior manager of marketing and communications
Posted: Aug 13, 2015 1:00am ET

This month’s ANA magazine features a cover story focused on media transparency — an issue critical to the marketing industry. A hotly disputed and a potentially calamitous problem for marketers, we’ve attempted to approach the topic in a fair way.

We sought perspective from those on every side of the conversation, and we’d like to get your opinion too. Leave a comment here to let us know what you think of the article or the issues surrounding media transparency.

We want to hear from you.

Alternatively, you can share your thoughts directly with the editor, Andrew Eitelbach, by email at aeitelbach@ana.net. Emails will remain confidential.

 

Photo credit: Archman via Shutterstock

ANA Offers Insurance for “Patent Troll” Protection

By Bill Duggan, Group EVP, ANA
Posted: Aug 11, 2015 3:00pm ET

The ANA has announced a program to provide members with focused patent infringement defense insurance protection for marketing and advertising activities. 

Patent assertion entities (PAEs), sometimes referred to as patent trolls, are firms which have the sole business of asserting patent claims against targeted companies, costing those companies millions of dollars in fees in order to defend against the claim. In the advertising space, PAEs have been increasingly in the news by claiming ownership of many common advertising practices, including using QR codes to direct a mobile device user to web content, putting a store locator on a website, superimposing a facial image on an animated body image, placing static ads in a video stream, and embedding a URL in a text message to direct a mobile device to web content.

As a result, marketers and/or their agencies could be faced with demands to pay large fees to PAEs that have not provided any direct services or technology to an advertising campaign, or, in many cases, contributed to any innovation. Furthermore, patent infringement is not covered under standard advertising liability policies, and thus far, standalone policies for patent infringement haven't met the specific needs and core concerns of members.

To address this issue, the ANA Patent Infringement Defense Insurance Program provides members with focused patent infringement defense insurance protection for marketing and advertising activities.

Patent trolls are still very much in the news and a continued nuisance to many ANA members.  We feel that insurance for patent infringement defense is a great new member benefit that provides good coverage at a modest cost. 

Science Is Cool…Honest!

By Urey Onuoha, copywriter, ANA
Posted: Aug 11, 2015 1:00pm ET

At first glance, Hank Green and Emerson don’t have much in common. One is a YouTube star, the other a venerable electric company. But they actually share a similar goal: a love of science and the promotion of STEM (Science, Technology, Engineering, and Math) programs. And Green, star of Vlog Brothers and SciShow, has partnered with Emerson on its “Consider It Solved” campaign. This partnership is just one of the ways Emerson is trying to make science cool and appeal to the younger audience that will make up its future employees and customers. In our cover story, “Raising the Cool Factor,” we talk to Kathy Button Bell, CMO at Emerson about all the company’s efforts on this front and her personal push for women in tech.

Also in this issue:

Read the full issue now.

The Sad State of Content Marketing

By Ken Beaulieu, vice president of marketing and communications, ANA
Posted: Aug 4, 2015 11:00am ET

B-to-B companies today are cranking out content with increasing frequency to drive traffic to their websites, generate leads, engage targeted audiences, increase sales, and position themselves as thought leaders, among other objectives.

At least that’s their intention.

But the sad reality is that a majority of B-to-B marketers are failing at content marketing — a fact that Joe Pulizzi, founder of the Content Marketing Institute, openly acknowledged at BMA15. And the hits just keep coming:

“There has been an explosion of content marketing, but brands and agencies haven’t really embraced the values of what it takes to create content that’s compelling,” admits Jeff Pundyk, global vice president of the content solutions unit at The Economist Group.

Be sure to read the latest issue of BMA Buzz to learn more about what’s holding back content marketing and how B-to-B marketers can use content more strategically and successfully to support the business strategy. Industry experts who weigh in, in addition to Pundyk, include Robert Rose, chief strategy officer at the Content Marketing Institute; Lee Odden, chief executive officer at TopRank Online Marketing; Ted Birkhahn, president of Peppercomm; and Phil Johnson, chief executive officer at PJA advertising + marketing.

Tug on my heartstrings, please!

By Mala White, senior manager of committees and conferences
Posted: Aug 3, 2015 3:00pm ET

Last year, the ANA’s Multicultural Excellence Awards program broke its submission record and a good portion of the advertising award submissions were designed to appeal to the audience’s emotions. Attempting to connect to their audience with emotions of happiness, sadness, or empathy, advertisers are hoping that appealing to their audience’s basic human emotions will gain them brand recognition, brand loyalty, and ultimately,  a greater return on investment.

Take for example ANA’s 2014 Grand Prize Winner in the LGBT Category, Honey Maid’s “This is Wholesome” campaign. Honey Maid rolled out ad campaigns that appealed to the nuclear, blended, interracial, extended, and same sex families and in doing so elevated itself from being the standard graham cracker company into one that, through emotion, embedded itself into the social conscience of society. With the face of America changing, Honey Maid’s message is resonating with a new type of audience and that’s a good thing. Many more brands are following suit, from Allstate to General Mill’s Cheerios and P&G,  as advertising today is becoming more about appealing to the emotions of the audience and connecting on a level other than just their wallet. And it’s paying off.

According to IPA dataBANK, which contains 1,400 case studies of successful advertising campaigns, “campaigns with purely emotional content performed about twice as well (31% vs. 16%) as those with only rational content (and did a little better than those that mixed emotional and rational content).”

As we begin taking submissions for 2015 ANA’s Multicultural Excellence Awards, I’m expecting to see more brands take this approach. As Plato said, “Human behavior flows from three main sources: desire, emotion, and knowledge.” So marketers, if you want my loyalty and my money, tug on my heartstrings, please!


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About This Blog

Written by our in-house citizen journalists, this varied blog draws on insights from the client-side marketing community, examines game-changing campaigns and industry research, provides actionable takeaways from ANA events, and more.