Although the actual dollar value that social media brings to TV programming may still be in dispute, one thing is seemingly true: People are increasingly aware of TV shows because of social media. In 2013, Nielsen says 25% of people were “aware of more programs” because of social media -- versus 18% in 2012. Also, 15% of those surveyed claim they “enjoy television more.” The number was 11% in 2012. Perhaps more important for those traditional TV advertisers is that as a result of social media, 11% said they watched more live TV in 2013, versus 8% in 2012. There were also more social media TV connections: 12% of those surveyed say in 2013 said they “record more programs” versus 10% in 2012. When asked about what connected devices those surveyed are using while watching TV, nearly 49% said smartphones and 66% said tablets, when it comes to general surfing for Web activities. Shopping is a significant activity for tablet owners while watching TV, at 44%. Activities such as getting information on actors and shows and emailing/texting friends each earned a high 29% share on smartphones. Other data from Nielsen’s first-quarter 2014 Cross Platform Report shows that the average adult age 18 and over now watches five hours and 10 minutes of live TV and 34 minutes of time-shifted TV per day.
Mobile shopping apps often fail to inform consumers about how their personal data will be used, according to a new Federal Trade Commission report. For the report, the FTC examined 121 popular shopping apps available through Google Play and iTunes. The FTC said most of the apps it evaluated offered privacy policies, but that the documents often provided scant information about critical matters, including their data-sharing practices. “The number of readily available privacy policies addressing the collection, use and sharing of data is a step in the right direction,” the FTC says in its report. “However, many disclosures used vague language, reserving broad rights to collect, use and share consumer information...Such disclosures preserve broad rights, but fail to achieve what should be the central purpose of any privacy policy -- making clear how data is collected, used, and shared.” Specifically, the FTC examined the privacy policies of 47 price comparison apps, 50 apps that offered discounts, and 45 apps that allowed consumers to pay with their mobile phones. (Some of the apps appeared in at least two categories.) Many of those apps told consumers that their information might be used to improve their experience, but didn't offer any tangible examples to explain what that would involve, according to the report. The FTC also notes that a large proportion of the privacy policies -- 29% of the price comparison apps, 17% of the discount apps and 33% of the payment apps -- didn't place any limits on their right to share users' personal data. The report, issued on Friday, also notes that few apps offer information about how they handle disputes between retailers and consumers. Whether mobile payment apps offer consumers the same protections as credit cards or debit cards often depends on how the apps process payment. If the apps use a “pass through” system -- meaning that the charge is placed directly on a credit or debit card -- consumers generally have the same rights as with traditional electronic cards. But if the apps use a stored payment system -- meaning that consumers can only pay after they have moved money into the app -- consumers might be less protected in the event of a problem. The FTC says that consumers can't always tell the difference between the two models, which means that people won't always realize when they're protected from liability. The agency is recommending that developers give consumers more detailed information about privacy, as well as dispute-resolution procedures, before they download the app. “In addition to being able to understand their rights and protections in case something goes wrong with a transaction, consumers should also be able to evaluate apps’ data practices before signing up to use a particular service,” the report says. “Companies providing mobile shopping apps should clearly describe how they collect, use, share, and secure consumers’ personal and financial data.” "Mobile Shopping" photo from Shutterstock.
Google's actions led to the arrest of an alleged child pornographer after the Mountain View, Calif. company tipped off officials about explicit images in the Gmail account of a man who had previously been convicted of sexually assaulting a child many years ago. The case raises questions about the company's ethical responsibility and may help to put the technology that targets advertisements based on audience segments in a positive light. Tipping authorities also reminds users that the Internet remains an open forum not only to target consumers with advertisements, but to identify and help stop unscrupulous activities. Google doesn't hide the fact it scans email content. In April, the company's Terms of Service was updated to explain how its automated systems analyze content across its network of services, including Gmail. "Our automated systems analyze your content (including emails) to provide you personally relevant product features, such as customized search results, tailored advertising and spam and malware detection. The analysis occurs as the content is sent, received, and when it is stored," per Google. A U.S. Judge last month denied the status of a class action suit brought on by non-Gmail users alleging that Gmail's email scanning feature to target ads goes against wiretap laws. These non-Gmail users did not consent to Google's practices or scanning and creating audience profiles for brands to use as a targeting tool. In the past, Google has said that all Gmail users must sign the terms of service agreeing to have their emails read, and that the information helps it better target advertisements on behalf of brands. Jacquelline Fuller, director of Google Giving, explains the company's position on fighting child exploitation since 2006 in a June 2013 blog post. The company teamed with other tech companies to form the Technology Coalition to develop technical solutions to combat abuse and help locate missing children. "Google mail homepage on a monitor screen through a magnifying glass" photo from Shutterstock.
After several years of slower growth, growth in global digital out-of-home advertising revenues should accelerate in 2014, according to PQ Media, which tracks and forecasts DOOH spending. That double-digit growth rate follows several years of more modest single-digit increases. In the U.S., DOOH ad revenues rose 8.7% in 2013 from $2.17 billion to $2.37 billion, while globally, DOOH revenues increased 9.3% to $8.9 billion. While these are respectable increases, growth was slower than in previous years, in part because of continuing economic concerns in key emerging and developed markets, which hit established DOOH categories like cinema advertising around the world. Total global DOOH revenues increased 11.4% in 2012, to $7.88 billion, and 15.2% in 2011. Looking ahead, this year PQ Media expects global revenues to increase 11.3% to around $9.9 billion in 2014. From 2014-2018 PQ Media forecasts a cumulative annual growth rate of 12.4%, bringing DOOH revenues to $15.9 billion by 2018. The report also forecasts strong growth in U.S. DOOH revenues in 2014, largely due to increased spending in the healthcare and political categories. The underlying trends certainly seem to favor digital out-of-home, as the average consumer exposure to DOOH media continues to increase. From 2008-2013, the global average exposure to DOOH nearly doubled to 14 minutes per week -- and should edge up to 15 minutes per week in 2014, eventually reaching 21 minutes per week by 2018. DOOH exposure times will increase in part due to huge sporting events and other outdoor activities. Indeed, one of the fastest-growing markets in 2014 was Brazil, reflecting the extensive deployment of digital signage and advertising associated with the FIFA World Cup.
Verve Mobile, a mobile ad network, is adopting newer ad technologies. The company on Monday announced the launch of a “programmatic direct” trading platform for location-based mobile advertising, dubbed Verve Direct. “Programmatic direct” is a hybrid trading model that’s part automation and part direct deals. In a "programmatic direct" deal, the terms of a campaign are fleshed out between buyers and sellers directly, but the actual buying of ads is done programmatically so advertisers can use data to target specific audiences. “Buyers using the platform are buying Verve’s location-dervied audiences and segments and we deliver those ads on direct designated publisher groups,” explained Tom MacIsaac, CEO of Verve. “That’s the default setup.” The non-default setup is to use the new platform to buy exchange-based inventory via real-time bidding (RTB). Advertisers doing so would use Verve’s “Location Bidder,” which uses location as a substitute for cookies when targeting consumers. “Buyers can also opt to deliver those same Verve location-based segments on exchange-based inventory,” MacIsaac continued. “Generally, buyers might do so for greater reach and/or lower price.” MacIsaac said that if advertisers use the platform to buy exchange-based inventory, they will only be able to bid on impressions that can be tied to a specific location. Verve has been involved with programmatic ad platforms before, most notably via its partnership with Vistar Media. The two companies teamed in late 2013 to launch a programmatic trading platform for location-based marketers featuring digital-out-of-home (DOOH) inventory.
With the new year on campus beckoning, retailers are experimenting with different ways to connect with young Millennials. Macy’s is running a $50,000 video contest, inviting schools to submit a remix of the classic “Be True to Your School.” And Target is going the video route, too, enlisting four YouTube stars for a design challenge that also aims to provide tips for spiffing up dorm and off-campus spaces. The stakes for back-to-college are high: The National Retail Federation says that college students and their parents are the “golden geese” of back-to-school spending, shelling out an average of $916.48 this year, compared with $836.83 last year. And it predicts total college spending to hit $48.4 billion. (By comparison, it forecasts that parents of kids K through 12 will spend $669.28 this year.) Macy’s September events, besides the video contests, which asks them to send in a one-take lip-dub video, also includes its first foray into campus shuttle services. Buses will ferry students to shopping parties at Macy’s, where they will be wooed with DJs, mini-manicures, makeovers and apparel, as well as 25% discounts. And Target, which has long provided campus bus services for back-to-college events, says it is pairing Veronica Valencia, founder of Design Hunter L.A., with YouTube stars Todrick Hall, Mikey Bolts, Tiffany Garcia and Ann Le for a four-episode design challenge. The Minneapolis-based retailer, meanwhile, continues to hold an early edge over many chains, and has hung on to its top-tier status in the back-to-school race, reports YouGov BrandIndex, which tracks consumer perception of brands and measures purchase consideration. “Old Navy, Walmart and Target take up the top tier, but Target has been on shaky ground in July,” says a YouGov spokesman in an email. “All three also have the highest ad awareness in the entire back to school sector. But the percentage of parents who say they might consider buying from Target has dropped from 54% to 45% in the past four weeks.” Macy’s, as well as J.C. Penney, Kohl’s, Sears, Marshall’s, and Kmart and along with Forever 21, H&M, American Eagle, Charlotte Russe and Aeropostale, make up the middle tier. And stores catering exclusively to teens, as well as luxury brands, are in the lowest tier, as ranked by purchase consideration. Abercrombie & Fitch came in last place, despite higher scores for value and ad awareness.
Facebook and health and hygiene brand RB are entering into a multiyear, nine-figure global partnership that will integrate members of their global sales, marketing and creative teams and co-create new brand engagement opportunities. The overarching premise is that RB (formerly known as Reckitt Benckiser) will leverage Facebook as a media channel to help drive sales, achieve broad reach and increase brand loyalty. Facebook will help with the development of RB’s media plans and creative campaigns. "This is not about advertising, but rather about collaboration to drive growth for RB brands and engagement on Facebook," says a RB spokesperson. "It also focuses on campaign development and talent -- two things one doesn’t typically see with a traditional advertising campaign or corporate sponsorship. RB wants to partner with Facebook to help us connect with our customers and grow our business in several countries around the world." The partnership will work together initially in the U.S., UK, Canada, Italy, Brazil, India and Australia. The companies have been discussing how this deal might take shape for two years. RB and Facebook have worked together on more than 100 campaigns globally over the past few years, and this partnership grew organically from these collaborations, per the companies. Now, Facebook and RB will work closely to establish new priorities for RB brands, which include Lysol, Air Wick, and Mucinex, as well as develop measurement goals and an improved, more efficient infrastructure for executing campaigns and other messaging. RB will also benefit from Facebook’s resources and people on global, regional and local levels -- including in the U.S., UK, Canada, Brazil, India, Italy and Australia. At the same time, this partnership will likely establish new priorities for both brands as they combine employees across the two companies’ global sales, marketing and creative teams. To that end, RB and Facebook will work closely in developing the next generation of leaders within RB by participating in joint recruitment events, marketing/education conferences, award development and CSR-related online programs. In addition, RB and Facebook will hold joint recruiting events at universities. "Consumers sit at the heart of this relationship. We are really excited to be working so closely with Facebook to engage with consumers in a relevant and meaningful way. This is a true global partnership, and I have been delighted by what RB and Facebook have been able to accomplish across so many markets," says Heather Allen, RB EVP, Category Development. Overall, the notion of bringing such two innovative companies together was a very attractive proposition for both RB and Facebook. "It is a privilege that we get to work so closely with RB leadership, who are challenging the status quo in marketing. The team is willing to make significant moves to drive personal marketing at scale, thereby building their brands with consumers and growing their business in markets around the world," said Carolyn Everson, VP of Global Marketing Solutions at Facebook. "Our people, our principles, and our missions are aligned. Given our successes together to date, we are absolutely clear on the wider and far reaching benefits of this partnership. In 2013, we laid the ground work. This year, we are implementing a radical new way of working together. And, by 2015, we will have uncovered even more innovative ways of driving our businesses together."
Now separate from its newspaper businesses, The Tribune Company will start its new life at Tribune Media Company as of Monday. The company will consist of Tribune Broadcasting, WGN America, Tribune Studios, Tribune Digital Ventures, WGN-AM Chicago and Tribune Real Estate. “In the last year, we have executed a strategy designed to embrace a rapidly changing media environment,” said Peter Liguori, president/chief executive officer of Tribune Media Co. “We doubled the size of our broadcast group, relaunched our national cable network WGN America with high quality original programming and expanded our digital businesses that power some of the world’s leading media brands.” Tribune Broadcasting now has 42 owned or operated television stations reaching 50 million households. Tribune’s national cable network WGN America is available in 72 million households. Tribune Digital Ventures includes Web sites Zap2it and TVByTheNumbers and Gracenote, which provides TV and music metadata for electronic program guides in televisions, automobiles and mobile devices. Tribune Media also includes the national digital multicast networks Antenna TV and This TV. Tribune Media also includes Tribune Real Estate, real estate properties across the U.S. and other investments in media. Tribune Publishing will housed the former Tribune Company’s newspaper assets, including Chicago Tribune and Los Angeles Times, as well as The Hartford Courant, The Sun Sentinel in Fort Lauderdale, Fla., The Orlando Sentinel in Orlando, Fla., and The Baltimore Sun. Tribune is among many media company’s to separate its TV and print media assets. One the most prominent has been News Corp. -- which split into 21st Century Fox (TV, film, and digital media) and News Corp. (print).
This weekend, just a few weeks after New York State legalized marijuana for medical use on July 7, The New York Times carried its first advertisement for a marijuana-related service. The full-page print ad for Leafly -- an online platform that provides information about marijuana strains, products and legal sellers -- depicts ordinary New Yorkers who used Leafly to find marijuana strains suited to their medical conditions, along with text congratulating New York on becoming the 23rd state to legalize marijuana for medical use. In an ironic nod to anti-drug campaigns of years past, the ad bears the tagline “Just Say Know” and also features the hashtag #JustSayKnow, directing readers to more marijuana information online. Under the terms of the Compassionate Care Act, signed by Governor Cuomo on July 7, marijuana will be legally available to people with a number of medical conditions, including cancer, AIDS, epilepsy and multiple sclerosis, among others. Supporters of the law cited polls from Quinnipiac University and Siena Research Institute showing that over 80% of New Yorkers supported legalization for medical purposes. Leafly CEO Brendan Kennedy stated: “Our advertisement in The New York Times is a responsible, mainstream message that elevates the conversation about cannabis in the U.S. With cannabis now legal for patients in 23 states, Americans need professional, educational resources to help them navigate the changing legal, medical and social landscape.” Meanwhile, The New York Times has run a spate of editorials praising the decision to legalize marijuana and criticizing the social and financial costs of prohibition. In the most recent editorial, published August 4, the NYT’s Vikas Bajaj addressed the need for regulation of the production and sale of the drug, including pricing and taxation strategies to ensure legal sellers are able to effectively undercut the black market.
Microsoft has overhauled the user interface for the Bing Ads paid-search platform and will begin rolling out the new version this week to a handful of marketers. The latest in a series of planned updates are intended to provide easy access to tools and links, shared libraries, and trend charts full of data and multiple types of metrics. It also will provide more intuitive proposals in the Opportunities tab. Users will see the new look for Bing Ads after signing in. The features should improve the performance of Bing Ads, David Pann, Microsoft GM, search advertising, told Search Marketing Dailyduring an interview in July. Pann said that throughout the 2015 fiscal year the focus remains on innovation and testing to make Bing Ads more efficient and easier to use. "We've seen double-digit [revenue per search] growth," he said. "We're extremely pleased with what we've seen." Not only has Microsoft seen significant RPS growth in paid-search ad results, but also performance in how Bing powers Cortana, Microsoft's personal assistant for Windows, since being integrated into the operating system. "When I started four years ago I was walking around with an iPhone and iPad at Microsoft," he said. "I didn't have that Windows religion. Cortana is awesome. I travel a lot. It asks me, 'Hey David, do you want to track your flight from San Jose to Seattle next Tuesday?'" Similar to the way Bing powers predictions in Cortana, the algorithms also power the performance in Bing Ads. The changes are based on user feedback, Pann said -- and include consolidating the options for Bing Ads Tools into one location, rather than directing the marketers to separate pages for various tools. Import options were consolidated into one drop-down location. Dare Obasanjo, Bing Ads group program manager, in a blog post, explains that all links related to user accounts have been moved under the Gear icon to make it consistent with modern Web design patterns. "It's here that you can modify user settings, again, in one easy-to-access location. Specific links that have moved include Accounts and Billing, User Settings and Help," Obasanjo writes. "To ensure you don’t feel lost, the first time you sign-in after getting the new look, pop-up notifications will indicate key places where navigational changes have occurred." The new Bing interface also will offer shared libraries, keyword lists that marketers can share across campaigns and ad groups. Multi-metric trend charts will show marketers campaign performance at a glance. Marketers also can expect a Change History page with an undo function that provides a visual picture of how the changes impact campaign performance. Filtering by user will make the change type filter more visible by placing it above the grid, as well as overlaying the change history bubbles on the performance trend graphs, per Obasanjo.
Payment service Square on Monday confirmed its acquisition of food delivery start-up Caviar as it continues to broaden its e-commerce offerings. Terms of the deal were not disclosed. The New York Times report on Friday, however, reported, that the transaction, first reported by TechCrunch, was valued at $90 million. For now, Caviar will continue to operate separately from Square. A Square spokesperson declined to comment on how the delivery service might eventually be integrated with its own offerings. But the announcement noted that 50,000 restaurants already use Square’s payment system, suggesting Caviar could be extended to partners not already using it. Launched in San Francisco in 2012, Caviar provides a way for people to order from popular local restaurants and eateries that don’t otherwise deliver. The service has since expanded to Boston, Chicago, New York, Los Angeles and Washington, D.C. It says order volume has grown 500% year-over-year, with 80% of its business to repeat customers. In recent months, Square has rolled out a variety of new services beyond its core point-of-sale (POS) system for small and medium-sized business. Earlier this year, it introduced its food pick-up service — Square Order — while shelving the short-lived Square Wallet app. Other new products include Square Capital, a lending program for merchants, and Square Feedback, a customer survey tool, among others. “Caviar’s curated, seamless delivery experience is exactly the kind of service we want to provide buyers and sellers,” stated Square CEO Jack Dorsey. The company said buying Caviar also “deepens its commitment to providing independent sellers with services that make it easier for them to grow their business.” “What Square is essentially doing over last 12 to 18 months is transitioning away from mobile POS for SMBs to becoming a commerce-enabling hub for merchants,” said Jordan McKee, a senior analyst with 451 Research. “The bottom line is that this is going to be more lucrative than getting a fraction of a credit-card swipe.” Specifically, McKee was referring to the $9.99 per order that Caviar charges (reduced to $4.99 for August to “celebrate” the Square deal), compared to the 2.75% cut it gets from processing POS transactions. Worth a reported $5 billion, Square is under more pressure than ever to live up to its lofty valuation. For his part, Caviar co-founder and CEO Jason Wang indicated he wasn’t about to walk away. “Delivery is no doubt an important component of helping a business drive additional revenue, and we’ll work hard to create new and exciting features for everyone,” he wrote in a blog post Monday. Caviar to date has raised $15 million in venture funding from investors including Andreessen Horowitz and Tiger Global.
Publicis Worldwide has acquired a minority stake in Singapore-based creative agency Arcade. Terms of the deal were not disclosed. Arcade’s key clients include Clear, Closeup, Pond’s, Rexona, IKEA, Coca-Cola, Bango, WeChat and Google. The agency will continue to operate as Arcade with Nick Marrett as CEO. The shop has more than 100 employees and has offices in Shanghai, Tokyo and Jakarta. This deal underscores Publicis' focus on Asian markets. Top clients have made Asia a global hub for several of its brands and the holding company finds itself increasingly working with Asian brands that have global ambitions. "Asia is a strategic priority for us," says Arthur Sadoun, CEO of Publicis Worldwide. "The Arcade team’s core values of creative excellence, entrepreneurship and digital innovation are a perfect match for Publicis Worldwide, as we strive to be the preferred partner of our clients in their digital transformation." With the deal, Publicis has taken a stake in a growing agency with low overhead. Founded four years ago by creative entrepreneurs, the agency's core ethos reflects the belief that only three or four key players affect outcomes, no matter how big the brand or the job. As such, Arcade focuses on reducing the number of people in the process. Still, the agency has delivered innovative work, including the world's first Android concept store, which is now the blueprint for Google's stores worldwide. Arcade was also the first Asia-based agency to launch a major Unilever brand in North America—the Clear haircare brand. Arcade expects that the new partnership will fuel its growth. Earlier this year, the agency expanded into Indonesia and now, it will have additional resources and opportunities. "The worlds of marketing, entertainment and information are colliding," says Nick Marrett, founding partner and CEO of Arcade. "[Our] entrepreneurial approach to creativity helps brands find new ways to thrive in this new and challenging environment. We are thrilled to be joining forces with Publicis as we accelerate our development across the region into key markets like China, Africa and India for the benefit of our clients, and strengthen our Asian credentials.” Last month, Publicis executives reconfirmed their interest in acquisitions, even though the holding company hasn't spent much money on them so far this year, 61 million euros (approximately $82 million) versus 363 million euros (about $487 million) last year.
Every day, advertising agencies tell their clients to stand for something, to own their positioning, to appeal to a defined narrow target audience, and yet, as an industry, we fail to listen to our own advice. Our Web sites, our case studies, our press releases all strive to be everything to everyone, a landscape that has become a mélange of agencies, a soup of the bland, scared to present a point of view, we are our own worst clients. For the last five years, our clients have faced the most turbulence in economic history, with massive cuts in budgets, higher growth targets, disruptive competitors, new technology, and a drive for more accountability. Throughout this time, as any key agency partner should, we've told them steadily and assuredly that the solution is to invest in advertising, to embrace new technology, to learn new skills, to monitor the competition, to look to the future, and to invest in training. We’ve listened to their needs and stated calmly that the future is bright, that by being agile, confident and raising ambition levels, they can grasp the opportunities that the chaos provides. We’ve said it so blatantly and tirelessly because it's common sense, because it's an empirically-proven business strategy, and because it works rather nicely for us. But what about ad agencies? How are we doing? How are advertising agencies adapting to a post-digital age? We now see an environment where our peripheries are swollen by venture capital money, by a tide of optimism, and by a world of greater possibilities, thanks to new technology and innovation. We also see threats, we see business is being taken in-house, we see media owners stealing production, ad tech companies automating our precious thinking, and it seems now is really the time to fight. Have we done like we tell our clients? A failure to listen to our own advice. It seems we’ve done the opposite. We’ve cut fees, and in order to maintain margin, we’ve cut our most expensive (and thus valuable) staff. We’ve understaffed teams, increase scope, and done all we possibly could to scrape by and not get fired. Holding companies and agency owners have come to terms with lower revenues, while defending a margin. In the process, we've devalued our product quality and brand equity. Have we become more agile and learned new skills to compete in the modern age? We’ve become more agile in the sense we've become better at working with less, but have we blown up the agency model to work around new needs? Have we put digital at the heart of our business? We know deep down we’ve resisted any change, and digital has merely become a new specification to bolt onto the end of our production process. Have we retrained our staff, and embraced and built for the future? Have we become more ambitious or have we tried to hide? The real opportunity is clear, valuable and defined The agency world is changing faster than ever before, but TV is not dying, mobile advertising won't change everything, and Twitter is not the dawning of a new age. However, there is chaos, and more than ever before, there is a greater need for valuable, wise people to lead agencies and clients through the blended new world of opportunities and threats, time-proven strategies and new possibilities, to embrace clients’ problems and to provide more profound solutions. We're in a vicious circle, and at some point in the process, clients cut budgets, we've produced a cheaper and worse product, we've been valued less, lost our seat as trusted and invaluable partners, we've become a supplier and we've thus faced lower fees. How have consultancies done? Have they lowered fees, stepped away from the boardroom, or have they grown the most of the last 10 years at 6 percent? Have they maintained gross margins of 30%, and are they investing collectively several hundred million dollars to face the changing world of advertising? The good news is that they show what confidence and belief and unique knowledge can do. They charge for the diagnosis, the ideation and the implementation, while we beg for the chance to give most away for free. Are they higher quality people, or have they just traded on measurable success, and treated their product with seriousness, while we enjoy table tennis in our offices and the right to wear ripped jeans? Seriousness is not the answer, aspiration and conviction is. So maybe for a final time, to embrace a new amazing future, to return to our seats at the table, to make a difference in the world and to stop pretending that a promoted tweet is embracing the future, let’s start becoming our own best clients. Let’s stop cutting and saving ourselves into bankruptcy, and instead let’s build a platform to solve our clients’ biggest problems and to become a true powerhouse industry for the future.