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Can an app cure your mobile addiction?

In March, thousands of people in the United States and internationally put away their phones for 24 hours to commemorate National Day of Unplugging, “a 24 hour global respite from technology”.  But is it too little, too late?

Data shows without any doubt that the population is getting more and more addictive about using the smartphone all the time,for many people the first thing done in the morning after waking up being picking up their smartphones and checking the latest news on their favorite social media channels and apps.

At the moment there are already over 3.5 billion mobile internet users in the world, which represents almost half of the total population. The global share of mobile devices in online activity is 52.64%. It is estimated that every day we spend almost 3.5 hours using the Internet through mobile devices. In 2018 this time will be further extended. According to App Annie, more than 3.5 million applications are currently available on Google Play, while Apple App Store has over 2 million. According to Statista data, both stores last year recorded 197 billion downloads, and by 2021 this number will increase to over 350 billion. Analyzing the statistics, one can conclude that the generally known 80/20 rule also works in the case of mobile. 80% of the time we spend in this channel using 20% of mobile applications installed on the phone. The average user has 5 favorite applications. It is worth noting that the first most frequently downloaded application is active for 45% of the time, and the fifth one is only for 4%.

Deloitte surveyed 4,150 British adults in 2017 about their mobile habits, 38% said they thought they were using their smartphone too much. Among 16- to 24-year-olds, that rose to more than half.  More than half (53%) of 16-75-year-olds in the UK use their smartphones while walking – the equivalent of around 22 million people – according to the latest research from Deloitte. For younger consumers aged 16-24, the proportion rises to 74%. Worryingly, more than 4.5 million people (11% of respondents) also admit to using their smartphones while crossing the road. This proportion almost doubles for 16-24-year-olds (21%).

Most people can relate to ‘smartphone zombies’, either through being one or bumping into one. But this is just one indication of just how infatuated we are with these devices, for better or worse. While we may be glued to our smartphones, it is important to acknowledge that these devices are also, increasingly, the glue that is binding society together, and will soon become the primary way to communicate, interact and transact with customers and fellow citizens, said Paul Lee, head of research for technology, media and telecoms at Deloitte.

Deloitte’s research shows that the UK’s continued love of smartphones continues to affect almost every aspect of daily life, including night-time. Among 16-19-year-olds, two-thirds (66%) check their phones in the middle of the night, double that of all UK respondents (33%). More than a quarter of ‘screenagers’ (26%) actively respond to messages they receive after falling asleep at night. More than a third (34%) of respondents look at their smartphones within five minutes of waking, and over half (55%) do so within a quarter of an hour. At the end of the day, more than three-quarters (79%) check their smartphones within the last hour before going to sleep.

source: Deloitte

At the same time, according to another Deloitte study, 47 percent of U.S. smartphone owners have made an effort to limit their phone use in the past. The most popular ways of trying to turn off are keeping the phone out of sight in a pocket and turning notifications off. The attraction for social media platforms remains hard to resist however: only 30 percent of smartphone owners have succeeded in reducing their phone time.

In this context, the new app called Siempo wants to “un-addict” you from your smartphone and its numerous attention-stealing apps. Siempo’s interface removes distractions and prevents you from getting sidetracked. The app also promises that you will get interruptions only when you want them, as it will batch all notifications to arrive at any interval or time of day that you desire.

“Siempo also leverages a number of design techniques to distance you from your distractions, including by unbranding app icons and turning them to greyscale. Plus, the launcher organizes apps into a tiered menu system where distracting apps are further away on a third page, and the location of those apps is randomized upon each visit to prevent unconscious opens and usage,” wrote TechCrunch.

Other apps that say they will help reducing the smartphone usage:

Mute

How much do you think you use your phone every day? 1 hour? 3 hours? Mute keeps you posted on: your daily screen time and pickups; the frequency you check your phone; and how long you can resist it’s pull! .

Moment 

Moment sets daily limits on your usage and will even try to force you off the device with a barrage of notifications if you choose that option.

StepLock 

It locks you out of your favorite apps until you have completed your exercise goal. This means that instead of stalking someone’s Instagram, you’ll be greeted by a screen telling you how many more steps you have to take before you can even open the Instagram app.

Space 

It’s a personalized behavior change program designed to help you think about how you use your phone, and how it affects your life.  It’s designed to help you to see the opportunities to put down your phone and to look up at the world around you.

Dinner Mode 

This is a handy app for iOS users which inhibits you from accessing apps for an allocated period of time, allowing you to enjoy your meal. Users can set a timer, put down their phone, and “make dinner the place to be tech-free” for 15 minutes, 30 minutes, or 1 hour.

Hold 

Aimed at students, Hold tracks how much time they spend not using their phone, and converts that into points to be redeemed for real-world rewards.

Forest 

This app has a different approach: starting the app plants a virtual tree, which grows for as long as you don’t quit the app, but dies if you exit. Moreover, Forest team partners with a real-tree-planting organization, Trees for the Future, to plant real trees on the earth.

Onward

The app promises to reduce your smartphone overuse with the help of a personalized Al coach (i.e., a sympathetic bot called ‘O’), and forces users to confront the amount of time they’re spending on their phones. Simply enter your number at the “Get Started” prompt on the site and a download link will be sent to your device.

European advertising business confidence rises rapidly in the first quarter of 2018, led by the UK

The business confidence in the ad industry increased 12 points from +1 in January 2018 to +13 in April 2018. It is the highest  level of confidence measured over the past year, close to the previous peak of +16 points reported at the end of 2016.  The information is generated by the latest European Advertising Business Climate Index, issued by the European Association of Communications Agencies (EACA).

The European-wide confidence index could rise further over the next quarter, as the expectation of advertising demand increases from +8 points (Q1/2018) to +21 (Q2/2018) and the expectation of selling prices grows from +7 (Q1/2018) to +9 (Q2/2018).

To a considerable extent, the growth is driven by the UK, which has the largest share of the advertising market in Europe. The confidence index for the UK has risen an impressive 75,4 points from -26,2 (Q1/2018) to +49,2 (Q2/2018). It has gone from having the second lowest score measured across all the countries in the last quarter to now having the highest. The expectation of advertising demand in the UK also rises 80,8 points from -11,9 to +68,9, between Q1 and Q2/2018.

AdIndex-April-2018

Among other positive confidence gainers are the big advertising markets in France and Italy, increasing respectively from +1 to +4 and -28 to -18 over the last quarter. Whereas Italy’s confidence index used to be the lowest of all the European countries, the bottom rank is now occupied by Greece with -35 points. It has had the biggest decline of all the countries over the previous quarter (25 points).

Despite the earlier poor expectations, the evolution of demand taken as a whole in the beginning of 2018 has increased from +1 to +16 and the evolution of employment has risen from +8 to +11 between Q4/2017 and Q1/2018.

The expectation of employment remains stable at +10 points for the next quarter with the exception of Mediterranean Europe, where the situation is expected to deteriorate (from +6 to -9). Expectations of prices in Mediterranean Europe are also the lowest of all the European regions but, on the other hand, they are expected to rise more than in other areas (from -3 to +4).

Two countries that have most improved their overall business confidence over the last quarter are the UK (from -26,2 to +49,2) and Estonia (from -4 to +8). The biggest falls in confidence are experienced in Greece (from -10 to -35) and Denmark (from +33 to +18).

Net neutrality 2018 – where does it go?

The U.S. Federal Communications Commission voted along party lines on Thursday to repeal landmark 2015 rules aimed at ensuring a free and open internet, setting up a court fight over a move that could recast the digital landscape, reported Reuters.

“The approval of FCC Chairman Ajit Pai’s proposal in a 3-2 vote marked a victory for internet service providers such as AT&T Inc, Comcast Corp and Verizon Communications Inc and hands them power over what content consumers can access. It also is the biggest win for Pai in his sweeping effort to undo many telecommunications regulations since taking over at the agency in January. Democrats, Hollywood and companies such as Google parent Alphabet Inc and Facebook Inc had urged Pai, a Republican appointed by U.S. President Donald Trump, to keep the Obama-era rules barring service providers from blocking, slowing access to or charging more for certain content. The new rules give internet service providers sweeping powers to change how consumers access the internet but must have new transparency requirements that will require them to disclose any changes to consumers,” commented David Shepardon for Reuters.

What can this mean in the near future? Even the consumers will probably don’t see immediate changes, it is reported that smaller startups worry the lack of restrictions could drive up costs or lead to their content being blocked.

This vote will negatively impact small- and medium-sized Internet business, and has the potential to decrease jobs and economic growth system-wide,” said Christian Dawson, executive director of i2Coalition, which includes Amazon and Google, quoted by USA Today.

“The scrapping of the Obama administration’s rules is likely to set up a court battle and could redraw the digital landscape, with internet service providers possibly revising how Americans view online content. The providers could use new authority to limit or slow some websites or offer “fast lanes” for certain content. Republicans on the FCC have sought to reassure young people that their ability to access the internet will not change after the rules take effect. People who favor the move argue that after users realize that little or nothing has changed in their internet access, it will not resonate as a political issue,” writes Fortune.

Meanwhile, in Europe….

According to Conversation, in the UK, “net neutrality is currently protected by EU policy 2015-2120 in support of a Digital Single Market – Brexit fallout aside. Potentially, after Brexit, the UK government could choose to revoke this policy, although this is unlikely because it has already committed to a Universal Service Obligation (USO), effectively making broadband access a legal requirement, as it has been in Finland for many years. Additionally, ISPs are held to account by the UK communications regulator OFCOM, which is tasked with ensuring fair play and protecting consumers from poor service. There has been widespread criticism that OFCOM has been slow and ineffective in persuading big players such as BT/Openreach to act responsibly in the past, though it has made progress recently.”

Online versus offline retail war ending soon?

“2018 will mark death of online versus offline retail war”, said Mariam Asmar, McCann London’s strategy and innovation director, for Campaign UK.

What is for certain is that both worlds willcontinue for sure to exists for a good while. In a demanding night and day economy, consumers want access to shopping at all times. They want to use price comparison sites, they want infinite choice in styles and sizes and they want to do it all from the comfort of their own home without the pressure of three different sales assistants hanging around waiting to bag some commission.

At the same time, “physical brick and mortar stores will continue to have a place in a world that still requires, and desires, human connection. The current statistic is that 90% of purchases in the UK are still made in store, while 60% of Generation Z consumers value the store experience. Millennials even want to shop in places they can touch, feel and see their product. Not to mention for some, shopping is an experience and they appreciate input and care from the staff and in store experiences,” wrote liveandbreathe.com.

Last year, in the USA, according to “The Atlantic”, online shopping was having an offline moment, as more e-commerce companies, such as RentTheRunway and Bonobos, invested in the physical stores they once made seem obsolete. Leading the trend is Amazon, the undisputed king of online shopping, which spent $14 billion to buy Whole Foods and its nearly 500 physical locations. “According to internal documents, the company believes there is support for another 2,000 Amazon Fresh–branded grocery stores. This throwback revolution is happening in the midst of what otherwise feels like a “retail apocalypse.” Bankruptcies are rising among clothing chains, like Wet Seal, and retail icons, like Toys “R” Us, which are stuck with a glut of shopping space and squeezed between stagnating sales and large debt obligations,” wrote “The Atlantic”.

While Amazon did make a bigger splash with its $13.7 billion investment, Walmart beefed up an e-commerce stable that already includes the acquisitions of digital natives Jet.com, Shoebuy, ModCloth and Moosejaw. Collectively, these M&A deals have set Amazon, the world’s largest e-commerce company, on a direct collision with Walmart, the world’s largest retailer, to be the “everything store” in an omni-channel world — where consumers no longer distinguish between shopping online and offline.

In the future, Amazon could upgrade Whole Foods with innovative retail technologies in use at its fully automated experimental store, Amazon Go, where shoppers pick up their food and leave. There are no cashiers or checkout lines. Amazon tracks what’s taken, or put back, and charges their accounts.

Moreover, “several brick-and-mortar companies with large footprints are struggling while e-commerce companies that once launched pop-ups as mere marketing tools have realized the value of storefronts,”considers The Atlantic. For instance Amazon sees a growth in online shopping in regions where it’s opened a physical store, according to CNBC. “Five years from now, we won’t be debating whether ‘e-tailers’ are taking share from ‘brick & mortar retailers,’” Citi Research analysts recently wrote, “because they are all the same.” The trend even comes with an inevitable, and regrettable, catchphrase: “bricks and clicks.”

“Among the nation’s top 300 malls, brick-and-mortar space occupied by retailers that started online has grown by approximately 1,000 percent since 2012, according to the real-estate data company CoStar Group. While they currently account for a minuscule part of mall volume, landlords increasingly consider them critical to attracting Millennials to these malls in the first place,” adds “The Atlantic”.

In India, another big and important country, according to blog.markgrowth.com,  “the FMCG is vertical: 90% of sales happen via mom and pop stores (Kirana) which are plenty in number. The remaining 10% of sales is accounted for by Modern Trade outlets ( Large Retail format stores similar to Walmart ) and the online channel. Now, these mom and pop stores are not going to go anywhere ( Over 10 million outlets in every nook and corner of the country!). Technology will aid these stores in the near future which will arm retailers with data regarding consumption patterns for instance, which will prevent stock-outs leading to an enhanced experience on the whole.”

More about the e-commerce in India and the classic retail industry one can read here and here.

Meanwhile, in China, according to www.scmp.com, malls are starting their own digital stores as they hitch their bandwagon to the concept of “new retail” pioneered by the Alibaba Holding Group chairman, Jack Ma Yun. The “online-offline integrated experience” is increasingly being used by Chinese retail property operators, who see it as a critical way of gaining insight into consumers’ shopping patterns and responding to these quickly.

The digital out-of-home advertising is already blooming

The share of global advertising spend going to out-of-home (OOH) advertising remains stable at 6 percent, shows ‘Why Out Of Home Performs’, a joint study by Magna Intelligence and Rapport, IPG Mediabrand’s out-of-home agency, into OOH’s continued growth and impact. The report was based on findings from an analysis of the global OOH industry and OOH advertising in 70 countries. This is largely down to major investment in digital OOH (or DOOH), which is growing in every environment and has seen unit numbers jump 70,000 to 300,000 worldwide in two years, and revenue increase by 30 percent.

Digital OOH is boosting advertising revenues by creating more opportunities for marketers in premium locations like airports or malls, thus increasing the revenue per panel multiple times. Although digital units account for only 5% of the global OOH inventory, they already generate 14% of total advertising revenues. In fact, DOOH already accounts for 30% of revenues in some markets like the UK and Australia, and the global share is predicted to grow to 24% globally by 2021.

“With the explosive growth of digital-out-of-home (DOOH), the diversified lifestyle touch points it reaches, and the veritable mountain of mobile driven audience data, we are best positioned to accurately, and in real-time, track audiences and deliver contextually relevant messages through out-of-home media. OOH’s sustained growth on a global scale will further enable us to create engaging consumer experiences,” said Mike Cooper, Global CEO Rapport.

source: Campaign Asia

“The digital-out-of-home market is a return to advertising’s roots, quietly shifting the industry by way of re-imagining the classic advertising experience. Nearly $4.5 billion is expected to be spent on DOOH advertising in the U.S. by 2019, an increase of approximately $1.2 billion from 2016. Zenith forecasts that DOOH will grow faster globally than all other buying methods, and PricewaterhouseCoopers predicts that DOOH advertising revenues will overtake traditional media spend in 2020, growing at a rate of 15% a year for the next four years,” writes AdAge.com.

According to MAGNA, OOH advertising is now a $29 billion market, responsible for approximately 6% of the $500 billion global advertising spending. However, OOH market share increases to 10% to 12% in some countries, including France and Russia, compared with other media categories including Internet, TV, print and radio. OOH market share has remained stable in the last five years, hovering around 6%. However, as part of its increasing importance in the media mix, OOH market share has increased from 8% to 10% of traditional media advertising spend, which includes TV, print, radio and out-of-home, among other categories.

MAGNA Intelligence, in partnership with Rapport, conducted an in-depth survey in 22 key markets including Argentina, Australia, Belgium, Canada, China, Denmark, France, Germany, India, Italy, Japan, Malaysia, Mexico, Netherlands, Norway, Philippines, Russia, Singapore, Spain, Thailand, United Kingdom and the United States. The objective of the survey was to assess OOH advertising’s sustained growth and impact during a period where offline marketing budgets are stagnating and other media categories are struggling.

Moreover, MAGNA showed in another study launched in June, that in the USA, Out-of-Home (OOH) advertising is expected to grow +2% to $7.9 billion in 2017, including cinema. MAGNA reduces its 2017 growth forecast following weak first quarter advertising sales, which grew by just +0.3% in a sudden slowdown, as seven of the last eight quarters had shown year-over-year growth of +3% or more. The 1Q17 stagnation occurred as a result of several key verticals reducing spend, including both automotive and food & beverage, which both experienced double-digit declines. This offset the continued growth from tech brands (e.g. Google, Apple, Hulu and Netflix) that have driven OOH sales over the last two years.

The DOOH market encapsulates everything from digital billboards to screens in elevators to screens on jukeboxes. Unlike internet or mobile advertising, it allows advertisers to reach target audiences in a specific, real-world context. Instead of interrupting an internet user’s online experience with an ad, it’s focused on marketing to consumers when they are “on the go” in public places or in transit. Due to its specifications, the technology has the opportunity to give to its target the message in a format that’s automated, dynamic and interactive.

“The DOOH space presents a major opportunity for creatives, technologists and consumers alike. We see DOOH’s effectiveness in the numbers: the 2016 Nielsen OOH ad study found 91% of U.S. residents age 16 or older, who have traveled in a vehicle in the past month, noticed some form of OOH, and 79% noticed OOH in the past week. The same Nielsen digital billboards study found 71% of digital billboard viewers find those ads to stand out more than online ads. Ultimately, the emerging digital-out-of-home market is groundbreaking in its interactive technology, but it’s also a return to advertising’s roots and the original purpose around advertising: to provide an engaging and useful service to the public,” writes AdAge.

Globally, in 2016, the OOH market was worth $28 billion in net advertising, according to Magna’s report, and is predicted to grow by 4 percent per year to reach $33 billion by 2021. Behind this growth is an ever-more concentrated supply-side market, in which the top international OOH media owners are continuing to expand their influence: the six main global vendors (in order of 2016 revenue size, JCDecaux, Clear Channel, Outfront, Lamar, Stroer and Exterior) now control almost 40 percent of the whole market. By 2021, the report predicts small, but significant changes, in the environments most used for OOH. Use of billboards, currently the top revenue-generating segment and performing particularly well in India, Russia and the US, will drop 4 percent from 45 to 41 in the next five years. Street furniture and transit, meanwhile, are due to grow, respectively, from 31 to 34 percent and from 14 to 15 percent as local authorities become more willing to partner with OOH vendors. A series of major contracts—typically over 10 years long—in big cities are also in the process of renewal, the first time this has happened in the era of DOOH and programmatic opportunities, which partly explains DOOH’s recent giant revenue leap.

According to APAC, while the US is the largest OOH market, valued at $7.1 billion last year, APAC countries Japan ($4.7 billion) and China ($3.1 billion) come in at second and third position and per capita spending on OOH amounts to a record $38 per year in Japan, compared to $22 in the US. Singapore spends the second highest amount per capita at $36 a year. In the Philippines, meanwhile, OOH accounts for one of the highest percentage shares of overall ad spend in the world, at 15 percent compared to the global share of 6 percent. Singapore (12 percent) and Thailand (9 percent) also exceed the worldwide average.

Singapore’s OOH ads have the highest reach range of any other APAC market, with a penetration of 70 to 80 percent of the relevant population, due to its concentrated levels of urbanisation. Australia’s have the second highest, reaching 60 to 70 percent, but neither matches the reach of OOH ads in Argentina, which are considered seen by a huge 85 to 95 percent of the population.

In Australia, DOOH represents more than a third of total OOH spend, which the report attributes to a sophisticated advertising market and a population relatively concentrated in a few urban centers.

In China, the total OOH spend about matches other markets, it is one of the top five global markets in terms of penetration of digital, led by the transit segment. By 2021, MAGNA predicts that digital growth will have doubled, while OOH growth will be stagnating, partly due to lack of interest in non-digital inventory.

“OOH’s natural convergence with other digital media has hurt most other ad forms. OOH complements digital media by amplifying and enhancing it. This phenomenon has brought additional ad revenue to OOH, while most other media have experienced revenue losses as a result of the growth in digital.OOH has benefited from other new technologies, too, such as social media and mobile. Many OOH media campaigns are now picked up on social media, which greatly amplifies the total viewership. When consumers are on mobile devices, OOH is typically one of the last ad forms they’re exposed to just before important path-to-purchase decisions,” explained Steve Nicklin, Vice President of Marketing, OAAA, for  billboardinsider.com.

The innovative opportunities provided by the digital platform have provided the OOH industry with new thinking and new ideas. Moreover, in the USA, as shown by the  USA Touchpoints/RealityMine study, OOH and Today’s Mobile Consumer, consumers spend more time with OOH than any other form of advertising media except TV. The findings are supported by the  2016 Nielsen OOH ad study that found that 91% of US residents age 16 or older, who have traveled in a vehicle in the past month, noticed some form of OOH, and 79% have noticed OOH in the past week. Their research also discovered impressive levels of engagement, with 82% of billboard viewers reporting they look at the advertising message at least some of the time; and over one-third looking at the billboard ad each time or almost each time they noticed one. The  Nielsen digital billboards study found 71% of digital billboard viewers find them to stand out more than online ads.

OOH is expanding to brand new environments. Digital screens have allowed OOH advertising vendors to penetration niche environment allowing to reach young urban population that is otherwise hard to reach by traditional media: offices, elevators, taxi, gyms, bars, retail etc. The “Digital Place-Based” segment offers targeting capabilities and programmatic opportunities. Moreover, OOH becomes addressable and experiments with programmatic. Initially developed to automate the trading of online display ads, the programmatic technologies are now being used in to buy and optimize ad campaigns on connected DOOH units.

Programmatic techniques not only optimize the workflow of media-buying but help brands deliver the right ad in the right place and at the right time, using consumer data and mobile location data. Giving advertisers the ability to plan, buy, optimize and measure the effectiveness of their outdoor campaigns through an online platform represents the natural evolution of OOH’s technology-driven transformation with many vendors developing Private Marketplaces (PMP).

Besides that, DOOH is going social. “There are two main avenues DOOH is being used to complement social campaigns, either through integration or through content creation,” says Neil Morris, founder and CEO of UK-based creative production house Grand Visual.

Mobile advertising to pass the $100 billion mark for the first time

Digital media has now surpassed linear television to become the No.1 category in advertising revenues. Within digital, the majority of advertising sales (54%) is now generated by impressions and clicks on mobile devices. The data are gathered from Magna Advertising’s Spring Forecast, June 2017. Globally, media owners advertising revenues are projected to grow by +3.7% in 2017, to $504 billion. This is a noticeable drop compared to 2016 which displayed a record +5.9% growth rate. Global advertising growth is expected to re-accelerate to +4.5% in 2018, with the return of even-year events (Football World Cup in Russia, Mid-Term U.S. elections, Winter Olympics in South Korea).

Online advertising sales will grow by 14% this year while offline ad sales (television, print, radio, out-of-home) will decrease by -2% (last year was flat), but it will pass the $200 billion mark ($204 billion) to become the #1 category globally, with 40% of total ad sales vs 36% for television. Within digital, the majority of advertising sales (54%) is now generated by impressions and clicks on mobile devices.

The star of these years, the mobile advertising will be passing the $100 billion mark for the first time this year ($110bn), while the video and social formats will continue to drive digital advertising growth (+30% or more) with paid search growing double digits again (+13%) to remain the number one format (almost half of digital ad sales). The two digital-native advertising formats or environments (search and social) now represent a combined 70% of total digital ad spend and will capture 85% of the net growth this year. For the second year in a row, social video formats (counted as “social” by MAGNA) will represent a major driver to digital spend, attracting major consumer brands in the social environment where, until recently, there was not significant spend in this category.

While this is slower than last year’s 51.6% mobile growth rate, it represents $27 billion of incremental mobile advertising spend, which is in line with last year’s $28 billion of incremental mobile spend. Mobile isn’t losing any momentum; growth rates are only declining because of the increasing base of mobile advertising spend. This strong growth contrasts with desktop growth, which is expected to shrink by -2.2% this year. This is the second consecutive year of negative desktop advertising growth, and it is expected to continue to decline for the foreseeable future. Within digital, search advertising is by far the largest portion of spend; search is expected to grow by 13% this year to reach $99 billion, or just under half of total digital advertising budgets. This growth represents 30% mobile search growth, and desktop search shrinking by -3%. Mobile search advertising has passed the halfway point to become the majority of search advertising spend, with 55% total share expected this year. Furthermore, the incremental $11 billion of search advertising spend represents over 40% of total incremental digital dollars. Search has been especially strong because of both continued new product innovations such as search re-marketing and customer match lists, along with the growth of non-core search such as Alibaba product listings. Furthermore, search advertising continues to be strong because of its position in the advertising funnel and the ease with which search activity can be connected to customer behavior and sales. Looking forward, search advertising will remain robust, growing around 10% annually to reach $140 billion by 2021. At that point, it will be larger than newspaper, magazines, radio, and OOH combined.

Equally important within digital advertising is social media, which is expected to grow by +32% this year to reach $42 billion, slightly ahead of prior expectations for +29% growth. Social advertising is the fastest growing portion of digital spend, and like search, this is because of mobile platforms. 85% of total social advertising dollars are coming from mobile devices, the highest share of any digital sub-format. Furthermore, social’s 31.6% growth rate represents $10 billion of incremental spend. This is nearly as much as can be found in search advertising despite social being less than half the total size. Growth comes both 10/17 from increased social usage and penetration, as well as new product innovations, including social video, and increasingly dense ad loads on social media. Looking forward, mobile advertising will continue to be dominant in social: by 2021 it will represent 93% of total social media sales. Impressively, search and social combine to represent more than the total of incremental dollars across all media formats (offline media and shrinking digital formats like banner display are net losers; search and social are the growth engine for global ad spend). Video advertising is growing nearly as quickly as social media; growth this year is expected to be 30%, which will bring total video advertising spend to $23 billion. While desktop video is still showing growth at +14% (unlike most other desktop formats), the engine for online video ad spend growth is mobile (+56% growth expected to bring mobile share of video spend to +45% this year). Mobile video will match desktop next year as the mobile video experience, wireless broadband penetration, and mobile video content continues to improve. By 2021, online video advertising will have passed the $50 billion mark globally, and digital video will represent more than 20% of total video viewing (TV and online video). Banner display and other digital advertising formats (email advertising, online classifieds etc.) are stagnating, with both expected to shrink by around -3% this year. Not only have brands found better outcomes using other digital formats such as search, social, and video, but display inventory is also on the decline. Standard banner online real estate is being replaced by video and other rich media formats.

“The record level of growth in 2016 globally, outperforming economic growth, was caused by marketers willing to embrace the new opportunities offered by digital media (search, social, video, programmatic) on a larger scale, while anxious to preserve their share of voice on traditional linear television, despite rising CPMs costs. In 2017, both digital and offline growth will slow down. Online advertising sales will nevertheless continue to grow by double-digits in most markets (globally +13%), but television ad sales will decline (-1%) due to softer price increases, ratings erosion and the lack of global sports events,” declared Vincent Létang, EVP, Global Market Intelligence at MAGNA and author of the report.

In the UK, online advertising sales will grow by an average 10% through the region, to $42 billion. Digital advertising now represents almost 42% of total advertising in Western Europe, slightly above the global average (40%). The fastest-growing formats will be social media (+37%) and video (+19%) while paid search spending will grow by 10%. Ad revenues from static banners will decrease by 5%. In terms of platform, mobile will capture all the growth (+36% to $19 billion). Mobile ad sales will represent 43% of internet ad sales by the end of 2017, which is slightly below the global average or APAC average.

Big influencers attract thousands of dollars for just a post on social media

Only 3% of the marketers said they planned to cut back on influencer marketing in the coming year, versus about 75% who anticipated spending even more on it, says emarketer.com. Moreover, according to the website, companies are paying the most for celebrity posts, especially on certain platforms. On average, posts by celebrities with at least 1 million followers (considered as influencers) cost nearly £65,000 each ($87,731), with Facebook posts demanding a leading rate of approximately £75,000 ($101,228).

Influencer marketing costs are going up in the UK, according to research by  Rakuten Marketing and  Morar Consulting, but prices per post vary considerably depending on reach and platform. This month, polling of UK marketers working directly on influencer programs from sectors including fashion, beauty and travel, approximately two-thirds of respondents had seen the prices influencers charge for posts go up in the past 12 months. In some industries, the costs were even higher, with some premium fashion brands, for example, paying celebrity influencers more than £160,000 ($215,954) per post.

“UK marketers are willing to pay celebrity influencers on Facebook up to £75,000 for a single post mentioning the brand they want to promote, a new survey has revealed. They are also prepared to pay celebrity influencers £67,000 for each YouTube video that mentions their brand, while key influencers on Snapchat can expect to be paid as much as £53,000 per Snap,” writes www.warc.com.

Spending was much more modest for so-called micro-influencers—those with 10,000 or fewer followers, due to the fact that only a fifth (20%) of marketers claim they are able to demonstrate the impact of influencers through indirectly influenced sales. Prices averaged at close to £1,350 ($1,822) per post, with YouTube and Facebook commanding the highest prices—more than £1,500 ($2,025)—and Snapchat the lowest at just over £1,000 ($1,350).

“Decision makers questioned from across a variety of sectors including fashion, FMCG, beauty and travel admitted that they would shell out as much as £53,000 per  Snapchat post, which despite coming in at significantly less than the value they placed on other platforms, is notable given that Snapchat’s ephemeral nature means videos and pictures disappear within 24 hours of being posted,” said Rebecca Stewart for thedrum.com.

Overall, respondents said they would devote an average of 24% of their marketing budgets to influencer marketing in the next 12 months. That figure’s higher than the share of budgets that the largest percentage of marketers in the UK and US said they devoted to influencer marketing in a March 2017 study by  Econsultancy. In that study, between half and six in 10 luxury and non luxury brand marketers said they invested less than 10% of their overall marketing budgets to influencer marketing. But the second largest shares of respondents were similar in their spending allotment to those in the Rakuten and Morar study.

Affiliate marketing firm Rakuten Marketing spoke to 200 UK marketers working on  influencer programmes and found that post-for-post they were prepared to pay 12% more for Facebook endorsements than they were for YouTube. The research also found that despite the value brands clearly place on high-profile influencer slots, the majority of those asked (86%) admit they aren’t entirely sure how influencer fees are calculated. Which is pretty odd, especially after the last years of change in the media buying market, the restriction of budgets and the overall risen caution.

Why are the influencers so important for marketers when it comes to social media? According to The Economist, social media offer brands their best opportunity to reach cord-cutting millennials: Snapchat, for instance, reaches 40% of all American 18- to 34-year-olds every day.

“Moreover, these platforms can make consumers feel they have gained unprecedented access to the lives of the rich and famous. That lets sponsors interact with their target audiences in ways that traditional advertising cannot match. In turn, demand from marketers for these channels has made social media lucrative territory for people with large online followings,” wrote the famous business magazine.

On the other hand, while 59 per cent of marketers state the influencers they work with will take guidance from them around best practice, 56 per cent of premium fashion marketers admit to a situation in which influencers hold all of the power. For example, only 20 per cent of marketers state influencers are prepared to follow their lead when it comes to guidance around billing.

Less than a third (29 per cent) believe that the influencers they work with are entirely concerned whether their content drives sales for the brand. Interestingly, when asked what would encourage marketers to invest more in an influencer programme, greater transparency and better reporting of influencer contribution to sales now rank as the highest factor (50 per cent).

James Collins, Rakuten Marketing’s SVP/managing director, global attribution, comments, “Influencer marketing can be hugely effective but marketers are commissioning expensive posts without understanding the real impact on the purchase journey. It’s essential that marketers question influencer fees and use attribution tools to measure the effect of this activity in order to create strong, value-driven relationships between brands and influencers.”

 

 

How the UK marketers feel towards the GDPR

Only 11% of marketers already have systems in place to ensure they don’t fall foul of the legislation, as shows data from YouGov and The Chartered Institute of Marketing (CIM). From May 2018, the  EU General Data Protection Regulation (GDPR) will come into effect. The reform is one of the most significant in years at 200-pages long and formalizes concepts like the ‘right to be forgotten’, data breach accountability, data portability and more. Huge fines of €20m, or up to 4% of global revenues, have been threatened for non-compliance.

The study into the challenges and opportunities facing those in the industry was based on two separate surveys from YouGov and the CIM. Key findings from the former, which surveyed 225 marketers found that for those in the UK, Brexit (55%) and a recession (47%) were the top concerns for the year ahead. Only 13% of those quizzed said that GDPR would be a significant cause of worry, with just 31% admitting they do not know whether their business has taken steps to ensure they’re compliant.

source: The Chartered Institute of Marketing (CIM)

The CIM’s dataset from 112 members revealed that 70% of marketers are concerned about factors outside of their control, including data breaches, impacting on their brand. The introduction of GDPR will have huge ramifications for marketers who handle personal data and also place demands on businesses to demonstrate informed consent to use consumers’ personal data for marketing purposes – something marketers have  previously expressed anxiety over.

Chris Daly, chief executive of the CIM said that while marketers were conscious of impending challenges like Brexit and other digital trends, they have to make sure it doesn’t obscure other issues.

“It is concerning to see that GDPR has not been fully considered, given the wide-reaching impact this will have on business areas which deal with data – marketers’ natural habitat. Given the concerns that emerged from consumers last year over how businesses collect and use customer data, marketers must make sure they are prepared and ready for GDPR sooner rather than later. By staying on the right side of the incoming legislation, marketers are best placed to safeguard not only their business’ reputation, but also its finances.”

The report, “The Challenges and Opportunities facing Marketers in 2017”, features the results of a YouGov survey of 255 marketers, in which more than half (55%) said the UK’s exit from the European Union was among their top concerns.

As a result of the UK’s looming constitutional changes, 54% of marketers said they expected to see an increase in “Brand Britain” messaging, and 19% said they were already looking at how to incorporate this into their own marketing.

Further data from a survey of 112 CIM members, conducted via Survey Monkey, reveals that:

  • 70% of marketers are concerned about factors outside of their control (data breach, tax scandals, workers’ rights problems) impacting on the brand
  • 95% think marketers need more influence and involvement with the broader business in order to protect brand reputation

Despite the influence social media gives consumers, only 18% of marketers are confident they can handle anything social media throws at them.

One of the key drivers for this is the impact of social media, which gives consumers a platform to shine a light on bad brand behaviour – in fact, 89% of marketers believe the Internet, and social media in particular, gives consumers more power to effect change over brands. However, 21% of marketers feel that while they can manage social media daily, they would struggle in the midst of a Twitter storm. Half of marketers (49%) also say they are not getting the most out of their social media, with 22% attributing this to a lack of investment. While marketers are trying to keep up with changing customer expectations, it would seem some are being held back by the business.

8 Things you might not know about Kjell Nordstrom

Kjell Anders Nordström is a Swedish economist, writer and public speaker. Amid the madness and hyperbole surrounding the new economy, Dr. Kjell A. Nordström is a guru of the new world of business. In 2009, Thinkers 50, the global ranking of management gurus, placed him and his partner Jonas Ridderstrale among the list of most influential thinkers. His research and consulting focus is on the areas of corporate strategy, multinational corporations and globalization.

More things about him that you might not know:

1.He was first educated as an engineer and thereafter commenced studies at the Stockholm School of Economics, where he earned a Ph.D. in 1991. Until 2004 he was an Assistant Professor at the Institute of International Business (IIB) at the Stockholm School of Economics. His research and consulting focus is in the areas of strategic management, multinational corporations and globalization. He has served as an advisor/consultant to several large multinationals and to the government of the United Kingdom.

 

2. He believes that in order to get rid of that human shadow called poverty, we have to make up our minds as to what a good life is. “Technology without ideology and values, does not produce much value. As noted by Charles Handy, the market is not a substitute for responsibility – merely a mechanism for sorting the efficient from the inefficient,” he declared for http://thinkers50.com.

3. Nordstrom also thinks that never before in the history of mankind have we had so many potent tools that potentially enable us to build a better world and companies that are actually fun to work for, but it is up to us to create this future.

4. In his opinion, the role of the leader is to strike a balance between when there should be control and when you should let go. Leadership is very much an art form. 

5.  His book  “Funky Business – Talent Makes Capital Dance” became an international best-seller and has to date been translated into 33 languages. In 2000, both Amazon.co.uk and the webzine Management General rated it as one of the five best business books of the year. Another survey ranked it as the 16th best business book of all time.

6. He has been described as the “enfant terrible of the new world of business”.

7.  He is a founder of the Stockholm School of Economics’ most prestigious management program, which attracts the elite of Scandinavian executives.

8. Amusing, Educational, Enthusiastic, Informal, Interactive, Passionate, Story-telling and Thought-provoking. Kjell Nordstrom is one of a new generation of rock star speakers. His dynamic, agile and compelling style is matched by the scale and pace of his ideas.