Every Friday, The Big Smoke looks at industry news curated by MediaScope. This week, we look at who reigns supreme over the digital ad space, the push toward crowdsourcing automation, and a break up letter to ad spend.
What’s clear is that Facebook and Google will continue to play an outsized role in shaping the online world. Facebook drives revenue at a faster pace than other tech company, and it’s doing that through its ad offerings—even as its rate of growth slows and the platform gets saturated with ads. Meanwhile, for Google, cost-per-click—the amount advertisers pay Google each time someone clicks on one of its ads—saw a bigger decline this quarter than analysts had predicted, because mobile ads cost less and Google’s mobile search traffic is up. But the pair remain the clear duopoly in online advertising, and will be for the foreseeable future. “These are two of the fastest-growing consumer tech companies, despite the fact that they are mature businesses,” says Jan Dawson, a principal analyst at Jackdaw Research. “And they are both almost entirely driven by advertising.”
In the early days of advertising, awareness was the name of the game.Fifty years ago, if your brand could afford to get into television, print or radio advertising, you could dominate your category because you were one of the few brands with high top-of-mind awareness. Most advertising was not yet about things like unique selling propositions or higher-end emotional benefits. And in a media landscape dominated by interruptive media and captive audiences, no one was talking about “brand engagement.” The job of big brands was to hammer home their brand names, again and again. Reach was guaranteed, so frequency was everything. If you owned a big brand, it was “media-driven.” Today, despite all the industry’s talk of engagement, awareness has become king again. And there are two things that are vital about its resurgence: It is reoccurring for entirely different (and almost polar opposite) reasons, and most advertisers do not yet realise that in a world dominated by on-demand and interpersonal media, awareness should be their primary (and perhaps only) marketing objective.
Agencies are adding new wrinkles to their media-planning processes to make sure campaigns are relevant and informed by expertise across many marketing disciplines. “More timely, adaptive media plans for clients make it easier to respond to things that drive business results,” said Joe Maceda, head of Mindshare’s Invention Studio in North America. And as holding companies break down silos, many are opening their media plans to input from people across agencies and networks through communication platforms that connect entire agencies and networks. In June, Publicis Groupe CEO Arthur Sadoun announced the group would not enter the Cannes Lions awards next year and invest the savings in building such a platform to connect its 80,000 employees. While the strategy behind a media plan can’t be fully automated (yet), agencies are using real-time data for better planning. Media plans are also becoming more widely sourced as agencies build systems that connect their employees and encourage them to collaborate.
You have a new love. And she’s called DATA You just do what she tells you to, without thinking twice:
Data tells you the target market is always millennials.
Data tells you that when everybody zigs, you should zig too.
Data tells you that a three millisecond view by an online bot is a reliable measure.
Data tells you that only way forward is programmatic everything.
And you just agree.
As if that Data knows anything about humans or originality.
The worst thing — is how she and you have turned our amazing planners into insurance salesmen whose sole job now it is to de-risk.