The economics of digital advertising have never been a great fit for business-to-business (B2B) marketers. Unlike our peers in business-to-consumer (B2C) markets, we rely more on targeted and lead-based communications than mass reach. But — as a recent reportthat I coauthored with Samantha Merlivat has shown — two trends are changing that dynamic:
Account-based marketing (ABM) is driving interest in outbound channels. ABM includes the tactics of reaching out to known and unknown contacts at target accounts with personalized messaging. This is a great use case for programmatic media buying — enabling you to deliver the ad to a specific person wherever she goes on the web (versus traditional advertising, which is about placing an ad where you hope a specific person, or type of person, will visit).
The programmatic advertising ecosystem is evolving to better support B2B marketing. The buying platforms, data providers, and publishers that previously catered to B2C marketers have begun to increase their resources and alter their approaches to achieve B2B-specific goals.
I love watching the annual Academy Awards — not only for the fashion show and blunders exposed on live TV but also to learn about how content resonates with audiences today and how cinema is evolving. In a world where people frequently face information overload and crave smaller bites (and bytes) of content, I’ve often wondered, what is the fate of the full-length film?
Forrester’s Consumer Technographics® data reveals a curious story: Rather than reaching any type of saturation point, US consumers’ media appetite is growing rapidly: 93% of online adults frequently watch video today, more than 10 percentage points higher than two years ago. And their often-criticized waning attention span is not deterring consumers from sitting through full-length films; in fact, movie viewership is on the rise. However, our data shows that the viewing experience is changing: Movie watching is getting more personal as consumers increasingly turn to their home devices instead of going to the movie theater.
The explosion of TV channels, on-demand content and OTT services continues to erode audiences. On the whole, Forrester’s Technographic data shows that consumers in EU5 countries (UK, FR, DE, IT, SP) watch on average as much TV in 2016 as they did in 2014. But the split is shifting in favor of online TV, in particular among millennials which will become increasingly difficult to reach through conventional linear TV media plans.
The fragmentation of TV content across sources shrinks audience sizes, and makes TV planning inefficient. Programmatic TV could be the answer to cross-screen, audience based planning, but the road is long and paved with obstacles. Programmatic buying is penetrating pockets of broadcaster inventory, but the level of implementation varies across countries, across broadcaster and across inventory type. The big question, of course, is whether programmatic ever makes it to linear TV advertising and becomes a viable tool to plan TV campaigns.
What is often missing from this discussion is the journey TV broadcasters have embarked on to collect and activate audience insights across their properties, and the wealth of data that is already available to test or experiment with audience-based buying within their inventory.
In the “European Marketers Get Ready For Data-Driven TV Planning" report, I break down how various TV / video inventory types will transition to different forms of programmatic over time, and explain why marketers will not have to wait for programmatic to infuse data intelligence into their TV media plans. Read the report to find out commonly missed opportunities in terms of audience optimization in TV planning.
I joined Forrester earlier this year as an associate forecast analyst on the ForecastView team, focusing on digital marketing (DM) topics. The ForecastView team’s goal is to answer the questions “How much?” and “When?” To this end, we publish five-year forecasts that provide forward-looking, quantitative guidance around the key issues that our research analysts are discussing as well as the important trends that Forrester’s Technographics® survey data reveals. To learn how our forecasts can help you with your investment decisions, see our ForecastView overview.
On the DM forecast team, we evaluate various facets of the digital marketing space, including online display, online video, social media, paid search, email marketing, mobile advertising, and ad tech.
Our latest report, the Forrester Readiness Index: Digital Marketing, 2016, touches on many of these areas. In it, we quantify the digital marketing readiness of 55 countries across six continents based on data collected for 23 variables — ranging from display, search, and social ad spending to per-capita online traffic and video consumption to penetration rates for PC, smartphone, internet, and broadband usage to GDP growth, number of businesses, and the percentage of businesses selling online. It provides one of the most comprehensive and digestible evaluations of the global digital marketing landscape available in one place.
Yes, I think someone’s banging on the door. Pretty hard actually.
In fact, it’s deafening.
The knocking is empowered digital media buyers. The slowness to answer is the media ecosystem of publishers, media agencies, and broadcasters.
I shared the video below a week ago on LinkedIn and people clearly like it. It’s the parable I just stated, but acted out. Listen to Gabe Leydon of Machine Zone (big digital media buyer) slam the media ecosystem. It’s painful. Cathartic. Iconoclastic. Focus on two segments: 11:00 -> 11:45 and 12:55 -> 13:55.
This is the advertising ecosystem’s reckoning with the age of the customer. The customers want to cut through all of the layers of BS that advertising has traditionally wrapped itself up in.
I had a few takeaways given Leydon’s analysis:
Media businesses are trying to be technology platforms, but are mostly houses on fire.
Analytics agencies are the new media agencies.
Media agencies are just houses on fire.
If you’re a marketer, pull your media-buying capabilities close to your chest. Invest in better analytics. And do everything in your power to get a measurable, direct-to-consumer sales channel on its feet, if only to provide insights to the marketing that feeds your indirect channels.
This week Facebook released “Reactions” for two pilot markets: Ireland and Spain. The new reactions available for posts? Love, haha, yay, wow, sad, and angry.
Myself and Forrester analysts Jennifer Wise, Samantha Ngo, Brigitte Majewski across mobile, social, and advertising pow-wowed on this new addition. Here are our thoughts:
Facebook wins from this move. Hello new and granular consumer data. Facebook can continue to optimize its own news feed experience, and grow monetization of its data with improved audience profiles and targeting for ads – on its site, and everywhere else.
Brands may get better sentiment data... Marketers need to go beyond counting likes, so what about counting “angries” vs. “yays” instead? Counts can suddenly mean positive or negative sentiment. Funneling these sentiments into consumer insights can help 1) inform ad targeting with refined consumer preferences and affinities, 2) test emotional story arcs, and 3) fuel retargeting. A clothing retailer could target consumers who react “wow” to dress posts. But the big “if” is: will Brands own Reaction data? We’re hoping yes.