Facebook's Audience Network: What It Means For Mobile Ads

Jennifer Wise

Facebook, the social media giant that has already made a large dent in the mobile ad ecosystem, today showed it has no plans to stop the momentum: Welcome, Audience Network.

Before today, there were already several factors working in Facebook’s favor: its reach among avid social users, its engaged and captive audience, and its trove of affinity data, which my colleague Nate Elliott talks more about in his blog post here.

After its Audience Network announcement today, Facebook is breaking the application of its tools and its data out of its own silo, and this could benefit several players:

  • Other developers and publishers could make more money by offering Facebook data-infused mobile ads.
  • Advertisers can dip into Facebook’s rich affinity data to target their ads across other mobile properties.
  • And of course, Facebook itself just extended its potential revenue base and faces a new competitive set with the likes of Google AdMob and MIllennialMedia.
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Facebook Begins Building The Database Of Affinity

Nate Elliott

It’s been clear for a while now that the greatest value of social media to marketers won’t come from placing ads on social sites — it’ll come from using social data to improve the ads marketers place everywhere else. We call this idea the database of affinity, and we believe it could be the Holy Grail for more-effective brand marketing. For nearly a year, Google has helped marketers use the database of affinity to improve the targeting of their online display ads. And today Facebook has finally started to build the database of affinity that has always been its birthright, launching a mobile ad network.

This move is fantastic, if long overdue, news for marketers. It has the potential to improve the performance of all mobile advertising. And if Facebook grows its ad targeting business into other channels and works to better analyze and utilize its data (something it’s lagged at in the past), it could revolutionize brand advertising.

For more analysis on what this means to the mobile ad ecosystem, read my colleague Jenny Wise' take here.

Q&A With Amy Nelson-Bennett, CEO And President, Molton Brown Global

Luca Paderni

 

Just three weeks to go before our Forrester's Forum For Marketing Leaders in London kicks off on May 13-14. In addition to industry thought-leaders from William Hill PLC and Intesa Sanpaolo, I am excited we have been able to confirm Amy Nelson-Bennett, CEO and President of Molton Brown Global, the global luxury body & beauty brand based in London, as one of our keynote speakers.

Since joining Molton Brown, shortly after its purchase by the Kao Corporation, Amy has modernised the brand and business operations, particularly in the areas of eCommerce, eCRM, and other digital marketing programmes. She has also successfully leveraged resources across the Kao organisation to help accelerate Molton Brown’s growth outside of the UK home market, and more recently has been working with the other Kao brands to better leverage digital assets and talent within the Kao organisation in EMEA and the Americas.

In the run-up to the Forum, I caught up with Amy and asked her these questions to uncover some of her messages for the marketing leaders attending our London event. Do join us on May 13-14 to hear Amy's full story!

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Instagram Is The King Of Social Engagement

Nate Elliott

Recently, Forrester studied more than 3 million user interactions with more than 2,500 brand posts on seven social networks and confirmed what marketers have long suspected: People don’t engage with branded social content very often.

On six of the seven social networks, the brands we studied achieved an engagement rate of less than 0.1%. For every 1 million Facebook fans those brands had collected, each of their posts received only about 700 likes, comments, and shares. On Twitter, the ratio was about 300 interactions per 1 million followers.

But one social network absolutely blew the others away when it came to delivering engagement: Instagram. Our study found that top brands’ Instagram posts generated a per-follower engagement rate of 4.21%. That means Instagram delivered these brands 58 times more engagement per follower than Facebook, and 120 times more engagement per follower than Twitter.

Instagram offers brands 58 times more engagement per follower than Facebook

What does this higher engagement rate look like in practice? Last month, Red Bull posted a video of a unique snowboarding half-pipe on both Facebook and Instagram. A few days later, we noted that the brand’s 43 million Facebook fans had liked the video just 2,600 times (a 0.006% likes-per-fan rate), while its 1.2 million Instagram followers had liked the video more than 36,000 times (a 3% likes-per-follower rate).

Red Bull's Facebook post           Red Bull's Instagram post

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Q&A With Kristof Fahy, Chief Marketing Officer, William Hill PLC

Luca Paderni

William Hill PLC, one of the world's leading betting and gaming companies and trusted UK high-street brand, has recently undergone a significant strategy review. The strategic changes came in response to the fact that more and more of its customers want to engage with the company via digital and increasingly also via mobile platforms — which at Forrester we refer to as the mobile mind shift

In this new business context, William Hill now focuses on three main initiatives for expansion: 1) develop a wider product range, 2) encourage greater multichannel usage, and 3) increase internationalisation. To better understand how it is tackling these business priorities and, in particular, how the firm is driving multichannel usage by delivering visible value (and in context), we invited Kristof Fahy, William Hill’s Chief Marketing Officer to deliver a keynote presentation at Forrester's Forum For Marketing Leaders in London coming up on May 13-14.

In the run-up to the Forum, Kristof was kind enough to answer a few questions to provide a sneak preview to the content from his speech. I hope you enjoy his responses as much as I did, and I look forward to seeing many of you in London!

Q. You’ve led marketing efforts at a wide variety of companies, from big and established brands like Orange and BlackBerry to challengers like Yahoo. Are there key things that all brands—regardless of size and industry—should be doing today to stay relevant and top of mind in our hyper-connected, multi-channel world?

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Mobile & Social Are Two Sides Of The Same Coin

Thomas Husson

The vast majority of Facebook and Twitter usage is coming from mobile devices, and both companies generate a significant proportion of their revenues via mobile ads (53% for Facebook and more than 70% for Twitter end Q4 2013).

  • Facebook is splitting into a collection of apps (Instagram, WhatsApp, Messenger, Paper, etc…) and likely to announce a mobile ad network at its F8 developer conference in San Francisco in a couple of days. While failing brand marketers, according to my colleague Nate Elliott, Facebook is increasingly powerful at driving app installs for gaming companies and performance-based marketers who have a clear mobile app business model.
  • That’s why Twitter introduced mobile app install ads a couple of days ago and leveraged its MoPub acquisition by integrating ad-buying capabilities. Twitter is less and less about micro-blogging and more and more about traditional media – the place to be for real-time information consumption.
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Beyond Marketing: How Mobile Is Transforming McDonald's France

Thomas Husson

At the beginning of the year in our yearly mobile predictions report, my colleague Julie Ask and I made the following call: "mobile will affect more than just your digital operations — it will transform your entire business. 2014 will be the year that companies increase investments to transform their businesses with mobile as a focal point." McDonald’s France is a great example of such a trend.

In France, you can now order a Big Mac anytime, anywhere on your smartphone, tablet, or desktop and pick it up later at any of 1,200 McDonald’s restaurants. But mobile ordering and in-store pick up are just the first steps of a broader and more ambitious strategy: differentiating McDonald’s brand experience and powering a future relationship marketing platform by enabling direct behavioral customer insights. Although it started with a mobile ordering and payment app nationwide, McDonald’s France aims to transform all points of customer engagement by building a platform to extend new services to loyal customers and evolving the entire organization.

Despite a less mature mobile ecosystem and lower mobile usage than in the US, McDonald’s France was the first subsidiary of McDonald’s to launch a mobile ordering offering at scale. Such an ordering service is only at pilot stage in the US. France is McDonald’s second-biggest market after the United States, with €4.35 billion in turnover in 2012. Most other countries had piloted mobile payments so far. With more than 16 million members, McDonald’s Japan mobile couponing and in-store contactless payment services is the only other mobile service for McDonald’s (and the vast majority of brands) that has scaled massively, but it does not yet offer the same value.

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Q&A With Francesca Nieddu, Managing Director, CRM And Sales Planning, Intesa Sanpaolo Group

Luca Paderni

I have just returned from our Forum For Marketing Leaders in San Francisco, and am now looking forward to being the host at Forrester's Forum For Marketing Leaders in London (May 13-14). Our analysts are excited to share with the European audience our latest Forrester thinking on brand-building in the post-campaign era and how to balance achieving business objectives whilst delivering highly contextual, real-time customer value. We will be joining forces with key industry keynote speakers such as Kristof Fahy, Chief Marketing Officer at William Hill, Amy Nelson-Bennett, President at Molton Brown Global, and Francesca Nieddu, Managing Director, CRM and Sales Planning, Intesa Sanpaulo.

As we make our final preparations for the event, I caught up with Francesca Nieddu from Intesa Sanpaulo about the marketing opportunities and challenges specific to retail banking. Here's what she had to say:

Q: Retail banking marketers aren't typically known for being customer-centric as they tend to focus their marketing efforts around products. What was the biggest barrier you faced as you attempted to pivot?

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It’s Time To Make Your Mobile Advertising Work

Jennifer Wise

It’s true; the mobile advertising opportunity is huge. With nearly a third of the world’s population toting smartphones, today’s mobile audience is sizable, always addressable, and can be reached with hyper-targeted messages based on mobile data. So it makes perfect sense that marketers, agencies, and ad tech vendors are turning their attention to mobile ads.

But when we look past the excitement in this market we face the reality: It has a long way to go — just because the mobile ad market is growing doesn’t mean that it’s working as well as it could be. Why is this? Well, the marketplace is still evolving and in flux, and there is a lot of deferring to familiar desktop thinking from marketers, agencies, and ad tech vendors. This poses one glaring problem: It completely overlooks the uniqueness of the mobile experience.

The time has come to rethink your mobile ad strategy, and here’s our advice: Divorce your mobile strategy from desktop and focus on integrated, personalized experiences. Here are some steps to help as you go:

  • Accept that mobile advertising is different. Your mobile customers are fundamentally different than your desktop customers — they are task-oriented, using a smaller screen, and demand that their mobile experiences be immediately actionable, simple, and contextually relevant to them. If your mobile customer is fundamentally different, shouldn’t your ad strategy be, too?
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Winners Of The 2014 Forrester Groundswell Awards

Nate Elliott

Today at Forrester's Forum for Marketing Leaders in San Francisco, I had the pleasure of announcing the winners of the 2014 Forrester Groundswell Awards. This is the eighth edition of our awards and the first time we've had a chance to present them at our flagship marketing event — and I'm thrilled I had a chance to share these great stories of social success with the more than 700 people in attendance. Once again, this year our awards were based on Forrester’s Marketing RaDaR model and the way social programs can support the Marketing RaDaR. That means we presented awards in three categories:

  • Social reach marketing. This category recognizes social programs that effectively delivered marketing messages to new audiences — whether by word of mouth or by using paid social ads.
  • Social depth marketing. This category recognizes social programs that helped prospects explore products in detail and make a purchase decision — such as corporate blogs and communities and marketers’ on-site ratings and reviews.
  • Social relationship marketing. This category recognizes social programs that engaged existing fans and customers in order to increase their loyalty and lifetime value — something that most commonly happens through branded profiles on social networks like Facebook and Twitter.
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