SIGNAL IN THE NOISE: ADVERTISING IN THE AGE OF DATA

Advertising is the quintessential example of an industry known for creatively embracing what’s new and next. From emerging technologies, channels, and formats to bold, go-to-market media strategies that are guided by evolving customer expectations for personalised, seamless, and omnichannel experiences, the most successful brands, agencies, and vendors just keep moving forward. 

This topic has been discussed for a number of years now from “Talking to Ourselves”, “Lee Chow Will Only Say This Once”, CP+B’s “Woodshed”, and “the Disruptor Series” and many others. What is absolutely clear is that the agency model has shifted. We all know it’s shifted. We can feel it. Our relationship with the client has shifted. Our value proposition (and perceived value) has shifted. The culprit? For the sake of brevity – is “Data”.

The introduction of “data” into our business has shifted the perception that what, once upon a time was considered alchemy, is now quantifiable. The pendulum that swings between art and science in advertising has decidedly taken a step towards science. Why? Well, for one, it’s the natural course of human progress. 

We humans have a history of decoupling and commoditizing our once lofty constructs. You may remember years ago the arduous task (and associated costs) of building a website? Today, we have Squarespace for $16 per month. 

Moreover, with the dollars attached to advertising at large, you can bet that any number of intelligent people will attempt to commoditize any number of its functions. To this end, the advent of this “Age of Data” has put all advertising practices under scrutiny.

But the backlash today being witnessed (against the traditional ad agencies of the world) is palpable. The problem appears to be that this “Age of Data” promised far more than it has delivered.

It is the natural and inevitable course of human evolution. However, being able to quantify and benchmark every consumer transaction along the customer journey is not tantamount to success. We now, arguably, have access to every metric under the sun but the data is largely meaningless. We are still pressed daily to find the signal in the noise.

This harsh reality has manifested in plateaued CX performance, digital transformations that did not deliver the expected returns, and early efforts to capitalize on new technologies and models that took a technical, rather than operational, viability path.

The larger risk may be market-based. While taking a step back to build foundation, those firms may have missed a closing window of good economic times and deferred more aggressive strategies to an economic climate that is at best mixed and, at worst, recessionary.

At the same time AI and robotics move deeper into the organization, closer to the customer, and, more profoundly, into the very makeup and operations of the company. This presents the best mechanism to drive growth - a strategically planned ecosystem that delivers value to customers throughout their life cycle. To establish a successful ecosystem, CMO's will need to thread the needle between employee experience, customer experience, brand purpose, creative, and technology, imbuing all these crucial areas with customer obsession.

Smart CMOs will undoubtedly begin pulling back on strategies that drive short-term gains at the expense of customer affinity, including dark patterns —design patterns that manipulate customers against their own interests. Meanwhile, spend will flow back into creative as the importance of differentiated branding becomes apparent in a world of digital sameness.

At the same time, technology-driven innovation — the ability to deliver new business results through opportunities discovered by continuously experimenting with technology, both emerging and established — will soon be table stakes for leading organizations.

Today, deep learning is sorting pictures posted on Snapchat, natural language processing is providing the backbone for customer service chatbots, and machine learning is helping companies accelerate product development by handling tasks from forecasting the effect of cancer drugs to helping to edit Hollywood movies.

Just imagine an advert that dynamically changes the tone of the voiceover based on the unique preferences of the viewer. The convergence of AI with human creativity and insight will transform advertising, and we’re just beginning to see what’s possible.

Artificial Intelligence allows machines to be able to carry out tasks in a way that we would consider “smart”. And, Machine Learning is based around the idea that we should just be able to give machines access to data and let them learn for themselves. Employing both, however, despite their infinite promise, has also not yet delivered real, tangible value (at least at scale or en masse.)

Yet, we are still pressed daily to find the signal in the noise. Moreover, we are still dealing with error-laden legacy data in disparate silos and clients are ill-equipped and the speed of technological change (which means we are always catching up.)

As a result, somewhere between ‘what is infinitely possible’ and ‘what is possible today’ lies the ad agency paradox today. Selling the promise of data-driven creative and personalisation at scale to clients whose platform simply will not get them there.

This paradigm shift also extends its own vernacular – now also far more focused on return on investment and short-term results. And herein lies the problem du jour. But, in the short term, humans are still the ultimate software. 

It is as if, metaphorically, someone had just invented the paintbrush. Despite, potentially, never using one, you can still see the infinite possibilities in its premise. But you can see (in this example) that the paint brush’s promise far exceeds its current application. Ultimately, this is simply the ebb and flow of all human endeavour. 

The agency of the future will undoubtedly be consumer centric, automated, transparent, collaborative, intelligent, nimble, experiential, and focused on a sprint versus a marathon approach. They can champion creative but will undoubtedly have deep expertise in strategy, consumer insights, and measurement.

Moreover, this heightened focus on the measurement will allow agencies to not just understand campaign performance, but to also understand how a brand is moving people through a journey and how advertising is fostering that movement.

With a heightened level of insight about what people think, feel, and do (after they interact with a brand’s advertising) we are simultaneously entering an advertising landscape with more immersive experiences that engage consumers on a deeper emotional level. 

One thing we do know? The importance of data and how it’s used to make changes that put consumers first cannot be understated. Agencies that pay attention to this now are sure to set themselves up for success in the years to come.

ADVERTISING AND BREAKING THE FORTH WALL

The quest? A single big idea that works across every media. An idea that can draw the consumer out and compel them to spend some time with the brand, and maybe even some money. The problem? Millennials apparently hate traditional advertising. This is apparently documented by multiple studies. But, as the largest living adult generation in the US now with $200 B in annual spending, Millennials can’t be ignored.

The Solution? One tactic increasingly being employed is a brand explicitly acknowledging that they are advertising to you — essentially making fun of themselves in a tongue-in-cheek fashion. This feels akin to breaking the fourth wall, the same technique you’ll see in a movie or play when the character speaks directly to the camera, acknowledging that it is a movie or play. 

One of the more subtle goals of advertising is to make the brand topical and most importantly a part of pop culture. Social currency and social relevance are integral to advertising today. Another thing that often distinguishes a great ad today is a sly, self-awareness that lets the consumer in on the pitch. This, in the parlance of performance arts, is known as breaking the fourth wall. The fourth wall is a performance convention in which an invisible, imagined wall separates actors from the audience. While the audience can see through this "wall", the convention assumes, the actors act as if they cannot. This can be done through either directly referencing the audience, the play as a play, or the characters' fictionality.

“Breaking the fourth wall” is defined by a character in a story who essentially tells the audience that they know they are a character in a story, hence breaking the imaginary “wall” that separates performance from real life.

It's a technique best known for its use in films such as Ferris Bueller’s Day Off, Fight Club, and American Psycho, breaking the fourth wall goes all the way back to the days of William Shakespeare and ancient Greek theatre. Although it was originally criticized and looked down upon, TV shows like 30 Rock and Netflix’s House of Cards have been using it more and more frequently.

Breaking the fourth wall works because it’s unexpected. Consumers expect brands to be nameless blobs spewing pithy taglines at them, and instead, these brands are acknowledging truths they know about their consumers and thus, trying to feel more relatable. There is no avoiding the fact that they have to advertise anyways, but they have to try to grab attention in a different way. Their business metrics will dictate whether it works or not.

Some examples include:

https://www.youtube.com/watch?time_continue=69&v=TfIjbGIccOg

https://www.youtube.com/watch?v=2p3XjPiCAe4

https://www.youtube.com/watch?v=d4Gi7BxriuE

https://www.youtube.com/watch?v=bQa9Xbvm6XU

https://www.youtube.com/watch?v=fUqNTqK7VNw

https://www.youtube.com/watch?v=6YWqf3QO0To&feature=youtu.be

https://www.youtube.com/watch?time_continue=35&v=TMAMHbhDQMw

https://www.youtube.com/watch?time_continue=33&v=_112uihcDng

THE MARRIAGE OF DATA AND CREATIVITY

Certainly, creativity captures an audience’s attention. But, to retain digital eyeballs, advertising also needs to be both contextually relevant and targeted. As such, there is understandably a lot of hype around the relationship between data and creativity today.

Marketers are recognising the power of data and creativity working together and that, within the right framework, data can always improve the creative process and campaign’s success. The trick is marrying digital and creative into one seamless marketing campaign.

Marketers applying data insights to their digital marketing campaigns’ creative sides might be surprised by the opportunities data creates. Using analytics to identify specific groups of customers can help marketing teams ensure that messaging and branding are tailored to each audience. Data insights allow demographics to be broken down further than simply “college students” or “middle-aged parents.” Instead, marketers can target “highly educated Californians aged 20-30,” developing content that resonates with that audience.

The impact of data on campaigns shows that analytics and creative are no longer separate marketing categories; creative campaigns need to be based on data insights, and data has to be presented to consumers in a creative way to be useful. Data as the linchpin to creating more emotional content.

Take the NIVEA Protection ad (below) as an example. A print ad in a magazine supplied a tear-out bracelet with a built-in locator that parents can use to keep track of where their children are on the beach. Using advanced mobile and geo-tracking technology, the bracelet enables parents to set a maximum distance their child can go, and sends a smartphone alert if this distance is exceeded.

In this example, NIVEA uses a highly creative approach to engage parent’s emotions – fear, protectiveness and desire for a worry-free holiday – to establish themselves as a brand that keeps children safe.

The 'Melanoma Likes Me' campaign for MELANOMA PATIENTS AUSTRALIA, leverages real-time social data to identify when users are out in the sun, raise awareness of the risks of sun exposure and educate the audience on how to identify melanoma.

Using a real-time response tool that utilises API endpoints to identify popular hashtags related to having fun in the sun – such as #beachside, #sunkissed and #tanlines – the campaign instantly responds with social messages from @_melanoma.

In this example, MELANOMA PATIENTS AUSTRALIA reached its target audience (via their channel of choice) at the very moment they are at most risk from sun damage, and opens up an immediate channel of engagement.

The bottom line? Greater collaboration is needed between creatives and data analysts. While this is already beginning to happen with the examples above, the unison of data and creativity needs to become the rule rather than the exception.

WEATHER TRIGGERED MARKETING CAMPAIGNS

Why Is Weather Data the Hottest New Commodity for Marketers?   

Primarily because the weather has a significant impact on our emotions, which directly translates into retail sales.The weather is a universal driver of consumer purchase behaviour, mood and receptiveness to marketing messages. Moreover, it has direct relevance to at least 30% of the products and services we consume and, behind the state of the economy, has the largest influence on consumer behaviour. 

 

Bottom line? The weather has a tremendous effect on what actions consumers take; where they go, how they travel, what food they eat, what clothes they wear, what products and services they buy, and even how they feel at any given time.

 

Just ask yourself what you had for lunch today? A salad or a hot soup? How did you travel to work this morning? Walk, bike, Uber, or cab? What clothes did you wear when you left the house? And what was your mood like? It’s clear that many of our everyday decisions are subtly shaped by the elements.

 

The impact of weather on consumer demand is so ubiquitous and the range of weather dependent verticals so vast, that many businesses may not even realize the true extent to which their sales are driven by weather.

WEATHER TRIGGERED MARKETING CAMPAIGNS 

Weather-marketing, commonly known as ‘weather-based marketing’ or ‘weather triggered marketing’, is a powerful form of marketing automation which utilizes real-time weather data to trigger ads and personalize marketing messages based on your audience’s local weather. In other words, you can serve ads for raincoats when it’s rainy, windbreakers when it’s windy, thermals when it’s snowy and breathable vests when it’s hot.  

Using Programmatic Advertising, you can easily refresh ad creative to match the viewer’s local weather, inject dynamic information into the ad itself, and even modify campaign spend levels and regional bidding decisions based on local weather conditions.  

Advertisers today can easily apply weather-based automation to their search, display, social and shopping campaigns. An ordinary AdWords, Facebook or Instagram campaign can be made weather responsive – triggering your ads or social media posts to activate before, during or after localized weather events.

INCREASED RELEVANCY

Imagine a snow-clearing business targeting ads to audiences who are located in areas where there has recently been a heavy dump of snow. The more snow that comes down, the more the Adwords bids could be increased. Or, imagine an insurance company demonstrating the merits of hail or crop protection insurance when there is hail coming down. Or Corona advertising kicking in anytime the temperature exceeds 80 degrees. The opportunities to drive relevancy using weather are obvious. 

 

You would be wrong to think that only low-ticket impulse buys are weather-driven. High-value purchases such as cars and houses are also influenced by the weather. Brand awareness campaigns perform just as well with weather triggered advertising as direct response. Jeep’s weather-responsive ad unit performed an amazing 600 per cent above the standard click-through rate of a mobile 320 x 50 banner ad.

SHOPPERS RESPOND TO THE WEATHER

The benefits of running weather adaptive campaigns are manifold – many brands have doubled or even tripled their conversions, clicks and engagement rates – whilst simultaneously lowering their cost per acquisition. For the 30% of businesses whose sales are directly impacted by the weather, being able to activate ads before, during or after specific weather events is an essential strategy for maximizing their key performance metrics across social.

Looking for more examples of weather-triggered marketing? Here are a few examples of weather-triggered campaigns that have produced considerable performance uplift.

 

-       - STELLA Cidre reported 65.6% increase in YOY sales during the period they ran their weather-responsive DOOH campaign. 
- MOLSON COORS increased CTR by 89% via their weather-triggered ad campaign on social media.

-       - NEUTROGENA Beach Defence Sunscreen used in-app ads which were activated by sun and UV levels, increasing purchase intent by 43% and product awareness from zero to 63%.

-       - Fashion retailer LA REDOUTE saw 34% traffic uplift and 17% sales increase generated by a weather-triggered DOOH signage campaign.

-       - BRAVISSIMO’s weather-triggered PPC ad campaign increased PPC-driven sales revenue for their swimwear range by nearly 600% during the 3- month campaign. The conversion rate of browsers to buyers increased by 103%.

-       - BURTON menswear used weather-activated dynamic website promotions to generate11.6% uplift in conversions.

-       - PURE360 reported 500% increase in email open rates for campaigns relating to domestic holidays during good weather. Click through rate rose from 12% to 27%.

-      -  PANTENE’s weather targeted display ads produced a 28% sales increase as well as 600,000+ social impressions.

-     - LIPTON's ran a weather-sensitive campaign across Facebook mobile. They reached 6.9 million people, and achieved a spectacular 12.8% video view rate - which equated to just £0.06 cost per view.

For the 30% of businesses whose sales are directly impacted by the weather, being able to activate ads before, during or after specific weather events is an essential strategy for maximizing their key performance metrics across social.  

 

Have questions? We’re here to help.

MEDIA 2025 | THE CONNECTED SOCIETY

Today, the term "media" can mean different things to different people. Ultimately, however, media is mass communication regarded collectively. Media today can be the message, the medium, or the messenger; and to complicate things, the lines between them are becoming very blurry. 

Social Media is participatory and connected. One might argue that once all media is participatory and connected that the term 'social' is redundant. Media is simply media. The future of social media, therefore, is a discussion on the future of media itself. To that end, social will just be folded into the broader marketing discipline.

Social Media today is focused on driving real-time engagement, (unedited and unfiltered) live streaming video, Virtual Reality (VR), Artificial Intelligence (AI), Augmented Reality (AR), Internet of Things (IoT), social commerce, mobile wallets, metadata, search/visibility, data-driven decisions, content marketing and mobile devices. 

Moving into 2019, more and more users are using messenger apps (e.g. Facebook Messenger, Slack, and WhatsApp) but there's still a lot of growing happening for social networks. Social platforms, social customs, and communication standards are all in a constant process of evolution.

Transparency is the new black, and there is a clear shift from talking at the world to making the world talk. To wit, most branded content in the next years will come from consumers, and user-generated content will far exceed branded content. The next wave of media apps will help filter the clutter. 

Ultimately, everything that can be connected to the Internet will be (i.e. homes, humans/ wearable tech, TVs, cars, jet engines, locomotives, lights, appliances, etc.) Everything from cars to coffee cups will be connected to the Internet by 2025.

That said, people will care increasingly more about culture than products. 

MOVING AHEAD

The future of media is inextricably linked to technology. The promise of technology was always to improve the way people live and to make our lives simpler and easier. Around the world, people are utilising technology to create new communities, engage across boundaries, make the world more inclusive, and change the way we interact. This transformation is happening everywhere and in every culture, country, and industry. 

Integrated mobile devices like Google Glass and the Apple Watch are already taking major steps to eliminate the gap between "technology" and "life." What is clear is that we have quickly evolved from the age of industrialisation to the connected society. 

The connected society transforms everything. Information and communications technology (ICT) and big data are also fuelling the rise of a new economy in which new market actors – commercial, "indiepreneurial," and crowd-sourced – are empowered with new models of production and exchange, as well as automated, frictionless and highly personalised consumption. 

In this new economy, consumers become curators rather than receivers, products give way to services, and consumers adopt more and more complex roles as citizens, users, co-creators, specialists, and actors. Collaboration, crowdfunding, crafting and sharing are just some of the hallmarks of the modern, involved consumer. 

The connected society encourages a rise of meritocracy and the formation of a creative elite. Within this order, merit is increasingly defined by a new set of emerging values, such as knowledge, transparency, fairness, quality of experience, authenticity, sociality, healthiness, and simplicity. The ability to make informed choices, to a very large extent, will drive the consumers of the connected society. 

Fast-forward to the future, and we should see global media usage continue on its upward trajectory. By 2020, eMarketer projects that 2.44 billion of the world's population will be on connected networks. Media usage will be ubiquitous, seamless, and integrated into our daily lives in a multitude of ways. 

The ways we both input and observe media will also shift. Holographic displays will be shifting into the mainstream and keyboards on desktops, laptops, tablets and smartphones will become increasingly irrelevant, as interactions on what was once called social media will largely be voice-controlled. 

Driven by continued advancements in technology and rapid rollouts of commercial products, the future will be shaped by an information ecosystem that's increasingly more intuitive, anticipatory, transparent and personalised. Some very fundamental human activities like learning, thinking, working, and being "present" with others will be transformed by these changes. 

Artificial Intelligence (AI) technologies such as machine learning and natural language processing will also play an integral role in shaping the future. Over time, the computer itself - whatever its form factor - will be an intelligent assistant helping you through your day. Your phone, for example, will proactively bring up the right documents, schedule and map your meetings, let people know if you are late, suggest responses to messages, handle your payments and expenses. Technology won't just serve as tools for you, but they'll even serve as your stand-in in some cases.

Even today, Google scans your texts; understands the context and supplies readymade human-like responses for you ("Cute dog!" and "That's good!"). Not just when you were sent words, but even when you were sent pictures. Just imagine how much more dynamic and robust these technologies will become.

As a result, Social Media will become far more specialised and personalised to the actual needs and interests of each audience member. By 2025, social media sites will have adapted their platform for each user so that it would appear by today's standards that people live in their own universe. 

Social Media platforms will compete to maintain their share of the audience. Users of social media will gradually only expose themselves to news that affects them. Future platforms will be even more equipped to predict exactly what users will need to keep them engaged. 

Social media platforms will connect advertisers with potential customers by using multiple regression analysis and correlation analysis. When a consumer behaves differently than the formula predicted, the formula will automatically adjust. The connected society will know when you are tired, hungry, thirsty, stressed, or even low on Vitamin C. 

In the connected society envisioned in 2025 people will increasingly seek out a sense of belonging and social media platforms will provide "fireplaces" for people to gather around and topics for interaction, conversation and relationship building. Products, services and brands will be instilled with meaning more through the crowd than through branding and marketing efforts. 

Products and services infused with a social component of some kind can more easily move from product/service status to an experience. For the 2025 consumer, the experience will always be more original than the actual product or service.

This means that consumers will be looking for original experiences delivered by humans and which are embedded in a social context, rather than searching for specific products and services. Subsequently, value will be grafted onto products and services by how a network of users – or a network of peers – decides to use them.

Human beings are inherently social animals, and we are ultimately at the centre of our own universes. On average, people spend 60 percent of conversations talking about themselves—and this figure jumps to 80 per cent when communicating via social media platforms.

As a result, our social media platforms will increasingly place us at the centre of our unique, personalised ecosystem. In 2025, parents won't be complaining about their children spending too much time texting. Rather, they'll be complaining that their son or daughter seldom steps out of their own self-made virtual-world.

Social Media in 2025 will be a ubiquitous enabler, producer and facilitator that shift the consumer from receiver to curator. This is a natural evolution to a sharing economy and change in values, preferring services and access to function, rather than ownership. This means that businesses will have to engage and collaborate with users in different roles (rather than merely as passive consumers.)

Social Media will continue to create and connect new communities, engage across boundaries, make the world more inclusive and fundamentally change the way we live. As William Gibson espoused, (Neuromancer, 1984) this brave new world will be "a consensual hallucination experienced daily by billions of legitimate operators, in every nation."

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