I've just started work on a report tentatively titled "How People Choose." I'm interested in studying how technology is influencing user decision processes. My hypothesis is that technology is fundamentally rewiring us so we actually rely more heavily on gut-based decisions than on well-rationalized ones. If you buy Daniel Kahneman's notions of fast and slow thinking (others have called it irrational and reasonable, or emotional vs rational thought), then my theory is that people are outsourcing more and more of their rational decisions to technology. This means, that what is left for most of us is a heavier reliance on our fast thinking, our impulses, and our gut-based response, when making decisions.
If this hypothesis is true, then marketers should actually focus on influencing impulse, rather than all of the linear, direct-response types of marketing sequences they prioritize today.
I'm just kicking off my research, so my overall hypothesis may evolve as I get some research under my belt. But my end goal is to write a report for marketing execs that would help them think through HOW to influence user decisions in a future where the fundamentals of how we make decisions have changed.
The start of a new year provides an opportunity to take stock of our environment and do things a bit differently. This year, I am addressing the role microvideo can play within a marketing strategy.
Though we all enjoy receiving information about items that are of personal interest, we may find we have a few “go-to” sites. This may be due to the presentation of the content, the ease with which we can interact with it, or a host of other reasons. Microvideo is versatile and provides numerous opportunities for marketers. Let’s use color as an analogy for this type of content. I have certain colors in my wardrobe because they work across a multitude of other colors. Marsala, Pantone’s 2015 color of the year, is described as an “elegant, grounded statement color when used on its own or as a strong accent to many other colors.”
Microvideo is similar. It can stand on its own or supplement targeted interactions with your customers. Just take a look at what Lowe's has done to keep us inspired.
Every year for the past few years, I've revisited our predictions for the previous year's mobile trends. It's now time to look back at what happened in 2014. Let’s have a look at some of the trends we put together a year ago with my colleague Julie Ask:
Mobile sat at the epicenter of mind-blowing exit events. Facebook’s acquisition of WhatsApp for $22 billion is the best illustration of the phenomenon. Acquiring mobile expertise and audiences is increasingly expensive. There have been numerous acquisitions – especially in the mobile analytics and advertising space (e.g Yahoo/Flurry, Millenial/Nexage, etc…). VCs increasingly invested in companies that power disruptive mobile-centric business models. Uber was valuated up to $40 billion, demonstrating the power of matching supply and demand in real-time via a best-in-class customer mobile app.
Smartphone adoption is surging. Your customers’ eyes are glued to their mobile screens. You want to get your brand in front of them. It’s time for mobile advertising.
Sadly, executing on a mobile ad campaign isn’t as easy as deciding you need one. Not only do you have to fight for budget and craft a mobile-first — not mini-desktop — campaign but you also need to pick the right partner to deliver on your mobile advertising needs. And while there is surely no shortage on vendors to select from, there is a lack of clarity into who actually does what.
To navigate this chaotic landscape, we surveyed mobile ad tech vendors and asked nitty-gritty questions about their heritage, creative, targeting, and add-on capabilities. What did we find? Marketers are right to be confused.
Why is this?
Each vendor’s value proposition isn’t clear. Fewer than one-third of the 35 vendors we surveyed are purebreds in any one ad tech category, and they offer anything from in-house creative services to contextual targeting to strong attribution chops. The result? Many jacks-of-all-trades that muddle the mobile ad tech landscape.
Each marketer’s expectations aren’t clear, either. We’re not just blaming the mobile ad tech vendors for this. Vendors are creating combinations of capabilities that they think marketers want — but aren’t getting much guidance.
Taxi-hailing apps are gaining momentum globally, and China is a very important battlefield for both international players like Uber and local players like Didi Dache and Kuaidi Dache. While the battle for market share and consumer loyalty is ongoing, monetization has also appeared on the agenda of these taxi-hailing apps. Pioneer marketers have started to experiment with mobile advertising on Didi, and Huawei is one of them.
On December 17, 2014, Huawei sponsored Didi’s lucky money in its first attempt to place mobile ads on Didi for its newest smartphone, the Huawei Honor 6 Plus. Huawei has embedded the product name, ad copy, and images in Didi lucky money and aims to reach the more than 100 million Didi users and their friends on WeChat. Huawei has created four opportunities for ad exposure:
1. Banner ad on the menu page of the Didi app
2. Full-page ad when the user clicks into the banner ad
3. Sponsorship of Didi lucky money shared in WeChat
4. Full-page ad embedded in Didi lucky money
This ad campaign has certainly created buzz and attracted attention. However, Huawei could improve its implementation by:
China’s Xiaomi became the world's third-largest smartphone maker by market share for the first time in the third quarter of this year; it trails only Samsung and Apple and has surpassed its Chinese competitor Lenovo. As a somewhat new brand founded in 2010, Xiaomi’s achievement is impressive. Among the many factors contributing to Xiaomi's rising success, social marketing is, without doubt, a prominent one.
Xiaomi’s recipe for success contains three social ingredients:
Adopt various social platforms and tactics to engage with fans. Xiaomi has successfully integrated social into its marketing RaDaR and turned 11 million social media followers into super-loyal “Mi Fans.” It uses Weibo to attract new users (reach); its branded online community to provide detailed product and service information (depth) and to generate brand loyalty (relationship); and WeChat for customer service (relationship).
Extend the social frenzy offline. Xiaomi is a digital disruptor, but its social marketing success isn’t limited to the online world. Xiaomi values the power of its fans on social media and extends it offline. It named its annual new product launch event after its fans – the Mi Fan Festival. Xiaomi also holds gatherings for its fans in more than 100 cities in China and organizes events, such as the MiBand Run, to enhance the relationship between its fans and the brand.
CMOs historically focused narrowly on marketing and promotion. That’s not enough in the age of the customer. The CMO of 2015 must own the most important driver of business success -- the customer experience -- and represent the customer’s perspective in corporate strategy. Andy Childs at Paychex is a great example -- he owns not only traditional marketing but strategic planning and M&A.
If you are, like me, deeply involved with digital advertising, one of the industry mantras of the last few years was anything with a taste of “PROGRAMMATIC.”
Yes, you can say it with me now: “PRO·GRAM·MAT·IC.” Ahhhh.
In reality, I think that we are only starting now to truly see programmatic methods and techniques adopted by ad sellers and buyers. Finally, in 2014 we have seen marketing leaders driving their digital media buying practices forward by combining rich customer data with algorithmically driven buying platforms to make digital advertising dollars more effective in reaching target audiences. And, while there is a long road ahead of us before the robots become self-aware, there are some key trends shaping the industry that point to a more sophisticated future for media buying:
1) Budget increases - Major brands and massive holding companies have huge goals for programmatic spending. With P&G striving to buy 70% to 75% of digital ads programmatically by the end of the year, Google striving for 60% of digital marketing budget on programmatic, and what seems like an arms race amongst the holding companies to see who can spend more programmatically, the future of software-driven media buying looks bright.
2) Growth in TV-land - As marketing leaders have started to up the ante for programmatic, sellers have taken notice, specifically across video and TV. The buzz about programmatic TV is taking hold, and we are seeing a new generation of ad tech commit to solving that problem for advertisers.
Marketing teams are expanding their use of mobile across functional, geographic, and brand boundaries, and the mobile vendor ecosystem is still fragmented and increasingly convoluted. The result? Marketing leaders are unsure about how to organize and support their growing mobile initiatives — they’re not even certain what responsibilities and talents they should allocate to mobile.
While CMOs are the primary leaders of mobile strategy among C-Suite executives, there’s rarely one clear mobile leader simply because mobile is not solely the domain of marketers. A third of marketers we interviewed still lack CMO support. While executives consider mobile as strategic, only 35% of marketers we surveyed consider they have the budget they need to support their initiatives. More often than not, we have found that marketing leaders lack mobile skills and ways to coordinate mobile across the company.
Looking down the road, the widespread adoption of mobile technologies will deliver unprecedented levels of change for marketing leaders and their teams as:
Agile approaches to marketing will become standard. To embrace the velocity and agility required to reap the benefits of the mobile world, marketing leaders will need to transform their teams’ organization and processes. Mobile’s data granularity and velocity will drive the need to constantly iterate marketing campaigns and tactics.
Mobile reached a tipping point in 2014 as it solidified its position as one of the most disruptive technologies for businesses in decades. Not since the advent of the Internet has a technology forced businesses to rethink completely how they win, serve, and retain customers.
Forrester believes that, in the future, the new competitive battleground will be the mobile moment. Why? Consumers expect to engage with brands to get any information or service they desire immediately and in context. Today, 18% of US online consumers have this expectation, while 30% are in the midst of a transition to this mobile mind shift. This revolution is taking place quickly across the globe: Forrester forecasts that 42% of the total population globally will own a smartphone by the end of 2015.
Forrester believes that, in 2015, the gap will increase between marketing leaders and eBusiness professionals who will re-engineer their business to deliver valuable mobile moments and the majority of executives who will continue to take a myopic approach by considering mobile just as another digital channel.