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Monthly Archives: July 2014
Q&A: Jason Deal, Managing Director Social Media Services Initiative US on Content Marketing
This Q&A is part of OPA’s “Three on Three” series where we ask three industry executives the same three questions on a topic to uncover actionable insights… If you want to learn more, keep an eye out on our site for more interviews. Today’s Three on Three interview is with Jason Deal, Managing Director Social Media Services Initiative U.S, on Content Marketing.
Q: How are you selecting partners to work with on content marketing? What is the ideal number of partners and way to purchase content marketing programs?
A: As an owned and earned media service within a media agency we produce a lot of content in-house, but partners are also core to our offering. We do this in a variety of ways ranging from working with partner agencies on shared accounts around campaigns (e.g. creative agencies), to constructing original content with publishers within paid media programs, to studio-style outsourcing with specialty vendors (e.g. infographics design experts). While we’ve not yet had much experience with the large-scale content sourcing solutions, they’re certainly on the radar and part of the discussion as our clients dial-up their brand publishing efforts.
The variety and volume of partners is shaped by the specific brand, audience and campaign objectives. It’s also increasingly shaped by our growing cognizance of which publishers are equipped to expertly manage high-quality original content production on behalf of brands. With the growth of native-ad products and accompanying brand content services by publishers, vetting the production capabilities of these groups is something to which we pay close attention.
Q: What has been the most effective use case for content marketing and how did you prove success?
A: Most of our work is with major B2C brands so earned media value is a primary objective. When we help our clients get to the right piece of content with the right distribution and promotion, we have seen incredible engagement, sharing and conversation lift. We’ve also seen how this can spike web traffic and subsequently sales lift. The (admittedly elusive) trick is getting to the consumer insight and associated creative idea that gets people sharing.
Q: What is the future of content marketing?
A: The current organic reach question on 3rd party social platforms is tripping marketers up a bit, but over the long-haul brands will increase their investments in marketing content. The paradigm shift they are going through now is around content strategy. I won’t beat the dead-horse regarding the need for brands to create unique content value, but will suggest that the next mental shift is going to be around distribution.
For most brands – especially B2C brands that work with a media agency like ours – organic reach and search won’t deliver the visibility and scale they need. Just like the old microsite, if you build it…they will not come. Distribution will increasingly be baked into the content marketing plans including tight orchestration with paid media for amplification of high-performing content. The advent of brand content platforms and native ad products by publishers are filling an important space between traditional digital display and owned-channel publishing. The emergence of this more contextually relevant distribution – along with improving brand content—will drive new levels of engagement and the social sharing that helps brands to win with empowered consumers. A lot of change… but terrific developments for both brands and consumers.
Jason Deal is Managing Director, Strategy for Initiative one of the Interpublic Group’s two worldwide media networks and part of the company’s IPG Mediabrands unit. Prior to his role in strategy, Jason oversaw all digital marketing efforts including social and mobile on behalf of the agency’s automotive accounts Hyundai and Kia. In addition, Jason served as the head of Initiative’s Prophesee unit, which offers marketers a full-service social media solution from insights to strategy and ultimately execution. Prophesee currently provides innovative social strategies to several of Initiative’s flagship clients including Hyundai/Kia, Dr Pepper Snapple Group and Best Western. Before starting his 15 year career in the agency world, Jason worked as an advisor to several political candidates and causes throughout the United States. A veteran in the digital marketing industry, Jason worked with numerous Southern California-based design, digital and general agencies.
Note: This Q&A is part of OPA’s “Three on Three” series where we ask three industry executives the same three questions on a topic to gain perspective and uncover actionable insights.
Also in this series:
Q&A: Daniele Kohen, Media Director Neo@Ogilvy West, on Content Marketing
Mobile Moves Digital Spending, eMarketer Reports
US industries will collectively spend upwards of $50 billion on digital advertising in 2014 according to eMarketer’s 2014 Digital Ad Spending Benchmarks by Industry report. While direct-response still captures the largest amount in the overall spending—$29.61 billion versus the $20.5 billion predicated to be spent on branding this year—both segments are growing at approximately the same rate. eMarketer also finds that, “As marketers get better at measurement and attribution, the lines between direct-response spending and branding are blurring more than ever.”
It is important to note that the larger trend numbers don’t tell the whole story. While eMarketer finds double-digit gains across virtually all industries since 2009, they say that more important data is among the “subtrends within individual industries.” In particular, evolving mobile behavior is impacting spending trends. To reflect this significant industry condition, this year eMarketer includes its first estimates of mobile v. desktop spending on an industry-by-industry basis.
eMarketer predicts that the US retail industry’s advertising spending on paid digital media will reach $11.05 billion in 2014 and rise to $17.39 billion by 2018 and it continues to be the single largest-spending industry by a wide margin. However that spending is largely concentrated in direct-response advertising. Among the factors driving retail’s use of digital media is consumers’ use of mobile devices throughout the shopping process.
The travel industry also skews heavily to direct response, devoting a larger share of its overall budget to performance advertising than any other industry covered in eMarketer’s report (74% of its $4.15 billion spend). However eMarketer foresees a possible shift increase in mobile spending from this segment as consumers shift to mobile travel booking and marketers experiment with advertising that taps into this trend as well as last minute purchases.
More than one-third (35%) of US automotive-related digital ad spending will be on mobile this year, eMarketer predicts, accounting for $2.15 billion of the $6.15 billion total. This will put the auto industry in line with the US industry average when it comes to mobile’s share of digital ad spending. In the automotive sector, mobile-based branding and upper-funnel advertising efforts are increasing in response to evolving consumer research behavior—which has shifted to mobile. eMarketer suggests that brands “must remain well-considered and top of mind among consumers who are not yet in-market in order to win a place on their shopping lists once they are.”
Mirroring increased consumer usage of a wide range of financial activities via mobile devices—including banking, buying securities and managing funds—the financial industry is increasingly viewing mobile as an attractive advertising platform. In addition to mobile, this sector is likely to increase its usage of digital video, social media and sponsored content. At present, 62% of the financial industry’s digital spend is being used for direct response and 38% is used for branding.
Somewhat stronger in the branding area is the US healthcare and pharmaceutical industry, which will spend $1.41 billion on paid digital media in 2014, including $373 million on mobile ad formats. This segment will invest 44% of its digital spend in branding-focused campaigns. An interesting growth segment among pharma and healthcare is the use of digital media to target small, specific audiences for expensive specialty drugs that treat less-common ailments.
The segment focusing the largest percentage of its digital spend on branding is CPG and Consumer products with the lion’s share of its ad budgets going towards TV. The CPG and consumer products industry, in which a mere 8.4% of total spending is done via digital channels, focuses a hefty 65% of their $4.2 billion digital budget on branding efforts. The good news is that the digital ad spend is growing and eMarketer predicts that some of the largest budget increases, by percentage, will be in digital video, as brands transfer linear TV efforts to online and mobile, where they are starting to find effective ways to measure campaign success.
The full 2014 Digital Ad Spending Benchmarks by Industry report is available only to eMarketer’s corporate subscribers, though an executive summary can be downloaded here. The full report covers Automotive, Computing Products & Consumer Electronics, Consumer Products, Financial Services, Media & Entertainment, Pharmaceuticals & Healthcare, Retail, Telecom and Travel.
Q&A: Daniele Kohen, Media Director Neo@Ogilvy West, on Content Marketing
This Q&A is part of OPA’s “Three on Three” series where we ask three industry executives the same three questions on a topic to uncover actionable insights… If you want to learn more, keep an eye out on our site for more interviews. Today’s Three on Three interview is with Daniele Kohen, Media Director, Neo@Ogilvy on Content Marketing.
Q: How are you selecting partners to work with on content marketing? What is the ideal number of partners and way to purchase content marketing programs?
A: Content marketing is about providing valuable and meaningful information that makes your prospect or user more knowledgeable. Content partners should be selected following the same criteria. If your audience relies on these sources to learn and educate themselves about a specific topic, chances are that a brand could be successful in engaging with their audience in a similar fashion.
Consumers have become much more receptive to the content they consume and are much smarter in recognizing genuine content from ‘branded salesy advertorials.’ As a brand, it is important to stay authentic and objective. This same principle applies when selecting the right content partner. You have to make sure you and your content partners are keeping a clear line between church and state. Don’t be fooled by those that promise to leverage their editorial teams to praise about your brand — even if it’s tempting, stay away from them. Content marketing is about communicating with your audience without selling.
Once you figure out which partner can provide you with the most compelling content, a few other variables will have to be considered including their distribution platform, how they leverage their social channels, the types of distribution and ownership rights you could negotiate, etc.
Q: What has been the most effective use case for content marketing and how did you prove success?
A: If content marketing started with the notion of having a brand position itself as a publisher to convey trusted and editorial content, then that philosophy has not really changed. What have changed are the end goals and the metrics behind it. Most of the B2B clients we manage at Neo@Ogilvy have used content marketing as a way to generate qualified leads. If the user has shown an interest in engaging with the brand by engaging with a specific piece of content, why not try to establish a longer-term relationship between both brand and user? That could easily be a win-win situation.
Measuring a successful content marketing program is no easy task. Each content program is different from the previous one and, generally, there is a lack of industry benchmarks. Some of the most common metrics tend to be socially driven—shares, likes, comments, etc. These metrics may please digital agency and client teams, but are rarely embraced by the management teams on the client side. However, when you are using content to generate leads and you are then able to drive revenue and attribute that revenue to the source of where that lead was originally generated, then it becomes a very powerful story. At Neo@Ogilvy, we’ve been successful at doing so and results have been outstanding.
Q: What is the future of content marketing?
A: Content on the Internet quadrupled over the past three years and social media sharing has tripled over the past two years. Every person and brand are now considering themselves content experts and we think we are all great at creating and sharing new stories. At the same time, people are getting bored and have less patience than before.
Future success will rely on an even greater level of personalization: laser-focused messages on the individual, not some fictional persona. Content will continue to shift more and more towards video. By 2017, eMarketer reports that 90% of all Internet traffic will be video and more than half of the video content will be consumed through mobile. This is not much different from what we are starting to see right now, it will just be a much more dramatic progression.
As Media Director at Neo@Ogilvy, Daniele brings more than 10 years of high-level global digital media experience, overseeing media strategy, planning and execution across both B2B and B2C businesses. His clients have included some of the most recognizable global thought leaders including IBM, Qualcomm, UPS, Kodak, Avis, American Express and Lenovo. Daniele has been with Neo since the agency’s creation and has worked in four of its offices around the world including London, Milan, New York and most recently Los Angeles, where he relocated in 2013 to help set up and grow Neo@Ogilvy’s West Coast operation.
Note: This Q&A is part of OPA’s “Three on Three” series where we ask three industry executives the same three questions on a topic to gain perspective and uncover actionable insights.
Also in this series:
Q&A: Jason Deal, Managing Director Social Media Services Initiative US on Content Marketing
