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1、21/03/2022INDEPENDEN T P U B L I C AT I O N BY#0792R AC O N T EU R.NE T FUTURE OF ADVERTISING?WE FIGURED THAT OUT.FUTURE OFADVERTISINGHOW TO LIVE WITHOUT THIRD-PARTY COOKIESINFLATION FORCES AN AD SPENDING REVIEW0903ECO-CLAIMS FACE GREATER SCRUTINY16R A C O N T E U R.N E T0321/03/2022INDEPENDEN T P U
2、 B L I C AT I O N BY#0792R AC O N T EU R.NE T/future-of-advertising-2022he rapid shift to privacycentric technology is a significant challenge for the world of digital advertising.As tech behemoths Apple and Google make sweeping changes to the core of their platforms,how can brands continue to targe
3、t their markets effectively and measure the quality of their ad campaigns?The Apple and Google privacy changes have been in the making for more than two years.They started to become a reality last year when Apple released its iOS14.5 software.This asked consumers to actively opt into tracking throug
4、h the identifier for advertisers(IDFA)the unique code assigned to each iPhone users handset.Google,meanwhile,is planning to stop the use of third party cookies in Chrome,its market leading web browser,by the end of next year.Both changes represent a huge shift for marketers.Theyre used to being able
5、 to track users across platforms and devices,before serving them relevant ads.As Google and Apple move away from whats now seen as invasive tracking,brands are being forced to completely rethink their strategies.But the path to privacy has not been smooth.Googles thirdparty cookie changes have alrea
6、dy encountered obstacles.Launched lastyear,the firms proposed alternative tracking method,known as Federated Learning of Cohorts,was scrapped after opposition from regulators and privacy advocates,who said that it risked uniquely identifying users.Google responded quickly with a new solution Topics
7、API which is considered more privacycentric because it allows advertisers to broadly serve content based on a users interests,rather than on the specific websites that person visits.Topics is viewed as a win for consumers.But Googles move away from thirdparty cookies the trackers that follow people
8、around the web will challenge the brands that once relied upon them.One of the biggest problems they face will be how to gauge the performance of their advertising campaigns.“We use cookies to track how many people have seen an ad and the number of times they have viewed it,”says Andrew Spurrier Daw
9、es,head of precision in EMEA at Wavemaker.“We want to prevent people from seeing an ad so often that it becomes irritating.These changes will make it harder to do that automatically,so we have to build it into our planning instead.”The demise of thirdparty cookies and the move to Topics means that b
10、rand advertisers will have less of a detailed view,says Ben Foster,managing partner at the Kite Factory.“We wont know about a certain product,just a whole range.”According to Foster,Topics will make retargeting more difficult and response rates will be affected.“Currently,when someone engages with y
11、our content,you can build a bespoke audience and target them with another message.That doesnt exist with Topics,”he says.“Topics are predefined segments and not bespoke,so the change is not supporting that retargeting and you will get lower response rates.Youll also have to adjust your strategy to c
12、ontinue the conversation with people.You cant bring them back after initial research to purchase.”Given this loss of detail,companies will need to obtain compliant data captured through their websites for example,by encouraging people to submit their email addresses Foster says.So where does this le
13、ave advertisers?Some in the industry are positive about the changes.Solutions such as Topics can be used in conjunction with contextual content,says Alexis Faulkner,chief digital officer at Mindshare UK.Firstparty cookies,which track users within the website they are visiting,will also continue to p
14、lay a key role through social media platforms,which are still able to collect large amounts of data.At the same time,theres a chance for traditional television,radio and outofhome advertising(such as Brands ponder an uncertain future in digital advertising FUTURE OFADVERTISINGraconteur/raconteur_lon
15、donApple and Google are shaking up the market with major changes centring on data privacy.How are marketers responding to the challenges this presents?Jon AxworthyA journalist specialising in health,technology,science and the future.His work has been published by outlets including T3,Wareable and Th
16、eAmbient.David BenadyA writer,editor and analyst specialising in media,marketing,retail and IT.His work appears in TheGuardian and onB and NYT.MaryLou CostaA writer covering sustainability,startups technology,innovation and thefuture of work.Herwork has featured in theEvening Standard,TheGuardian an
17、d Sifted.Morag Cuddeford-JonesA business journalist withmore than 20 years experience of delving intoevolving topics andcovering major commercial issues.Kate OFlahertyAn awardwinning journalist who has covered data security issues of concern to businesses and consumers for well over a decade.David S
18、tirlingA freelance journalist writing news and feature articles for a range of national publications,including newspapers and business magazines.Chris Stokel-WalkerA journalist and author specialising in tech and culture,with bylines in The New York Times,TheGuardian and Wired.Distributed inKate OFl
19、aherty Published in association withContributorsAlthough this publication is funded through advertising and sponsorship,all editorial is without bias and sponsored features are clearly labelled.For an upcoming schedule,partnership inquiries or feedback,please call+44(0)20 3877 3800 or email Raconteu
20、r is a leading publisher of special-interest content and research.Its publications and articles cover a wide range of topics,including business,finance,sustainability,healthcare,lifestyle and technology.Raconteur special reports are published exclusively in The Times and The Sunday Times as well as
21、online at The information contained in this publication has been obtained from sources the Proprietors believe to be correct.However,no legal liability can be accepted for any errors.No part of this publication may be reproduced without the prior consent of the Publisher.Raconteur M d3sign via Getty
22、 ImagesTD ATAFlurry,2022FebJan 2022DecNovOctSepAugJulJunMayApril 2021 (launch month)MOST APPLE DEVICE OWNERS ARE OPTING OUT OF TRACKINGPercentage of mobile active app users who do not allow app tracking after the release of iOS14.5 across all apps89%89%86%83%80%79%78%76%76%76%75%Lead publisher Caitl
23、in McLaughlinDesignKellie JerrardColm McDermottSean Wyatt-LivesleyDesign directorTim WhitlockDeputy editorFrancesca CassidyManaging editorSarah VizardSub-editorsNeil ColeGerrard CowanLorraine EamesKate WilliamsonDesign and production assistantLouis NassHead of productionJustyna OConnell Illustration
24、Sara GelfgrenCelina LuceySamuele MottaReports editorIan DeeringR A C O N T E U R.N E TF U T U R E O F A D V E R T I S I N G0504billboards and bus shelters)to “rem ind advertisers of their various strengths”,Faulkner says.Topics enables a move to contextual advertising,observes Lorraine BarberMiller,
25、chief marketing and ecommerce officer at Philips.“Brands need to reconnect their marketing with their values and where they want to advertise,”she says.“In many ways,thirdparty cookies made it tempting to abandon the contextual approach in favour of chasing clicks around the internet and blindly tru
26、sting algorithms with the data collected.”While the demise of thirdparty cookies marks a huge adjustment in web advertising,its accompanied by a similar shift in mobile towards privacyfocused solutions.This is being led by Apple,which has already implemented its App Tracking Transparency iOS feature
27、s that ban tracking between Advertising practices are shifting rapidly in line with digital privacy changes.Big brands are finding that its important to unlock first-party data to offer value to consumers.Heineken USA,for instance,has changed the way it thinks about data as a part of the customer jo
28、urney.“While we knew that the demise of third-party cookies would have a significant impact on how we advertise and measure campaign effectiveness,we realised it would be the push for us to build relationships directly with consumers and provide them with extra value in exchange for data,”says Rebek
29、ah Kennedy,director of consumer data strategy at Heineken.“With third-party data becoming less reliable and Apple and Google limiting cross-app tracking we had to start collecting and using consented first-party data to future-proof our business.”The firm first had to rethink its data management pla
30、tform(DMP),which it was using for targeted advertising.“Since DMPs rely heavily on third-party cookies,we needed a way to make up for the data we would lose,”Kennedy explains.“With DMPs,match rates were already sub-par,and we wanted to test building lookalike audiences with first-party data.”Using i
31、ts customer data platform BlueConic,the company started to build up first-party data through direct-to-consumer channels such asits website and offline events.Asaresult,Heineken has been able to analyse its audience to better understand,for instance,previous events theyve attended and drinks theyve
32、sampled,which has in turn informed its engagement efforts.“Were continuing to test cookie-less solutions and refining our approach based on this,”she says.Pete Jeavons,marketing communications director at BT Consumer,says that his company hasrevised its media measurement methods by using adtech to o
33、btain abetter understanding of its return on marketing investment.“With less tracking,the econometric models we use to give us short-and long-term reads on advertising performance are more important than ever.We also need more specific media experiments such as A/B tests which gauge responses to dif
34、ferent variants toprove the value of new platforms,publishers and tactics,”he says.At Philips,measurement remains“atough nut to crack”,says Lorraine Barber-Miller.While brands can use new strategies to reach audiences,basics such as cross-channel reach and frequency capping will“have to be completel
35、y revised”.She says that first-party data“has been the forefront of our strategy forquite some time”and reports thatPhilips has been investing in marketing-mix modelling.Targeting consumers that other brands cannot reach Privacy changes affecting digital advertising could see the likes of Amazon and
36、 TikTok become the next big players in the industry.Nearly 40%of searches start on Amazon and the online giant is largely unaffected by cookie changes.Amazon has revealed that its making nearly$10bn(7.6bn)a quarter in advertising revenue.This puts it ahead of Microsofts 2021 revenue of$10bn as well
37、as Googles YouTube video platform.Speaking onAmazons latest Q4 earnings call,CFO Brian Olsavsky said the company had separated advertising services results from its other revenues.“Of course,advertising works only ifwe make it useful for Amazon customers.When we create great customer experiences,we
38、deliver better outcomes for brands,”he said.As marketers learn the platform and Amazon refines its offering,thisarea is set for even more growth,according to Mindshare UKsAlexis Faulkner.“Advertisers payfor search advertising within Amazon much as you would in Google,with similar features and ahuge
39、data environment around purchasing behaviour,”she says.Amazon auto parts sales are attracting car companies,while its investment in live sports opens up new video opportunities,she adds.At the same time,TikTok is investing heavily in tripling its advertising revenue to$12bn in 2022 after doubling th
40、e size of its advertising products and technical teams in 2021.With more than 1 billion active users,TikTok is in a strong position to compete with Google and Facebook.Lorraine Barber-Miller thinks its likely that the“walled gardens”of Amazon and TikTok will grow further as they are able to attract
41、more advertising revenue.But she adds that Philips will also invest with smaller retailers and publishers as well as niche platforms.“We all need to develop a sustainable media landscape thats privacy-first and future-proof by making thoughtful investments with our ad spending,”she says.In this comp
42、etitive arena,the owners of high-quality data and content will win,says Wavemakers Andrew Spurrier-Dawes.It will always be important for ads to appear next to good content,he says,adding:“Quality can be defined in many ways,from lots of eyeballs and time spent on a site through to a high standard of
43、 journalism combined with a brand-safe environment.”Retailers and publishers could offer a“quality interaction”with consumers alongside permissions to collect data in exchange for value,he says.Walmart,which is rebranding and expanding its digital advertising unit to take on Google and Meta,is one s
44、uch example.Tescos Clubcard also offers a wealth of opportunities.Amazon and TikTok:the next players in digital ads?Google,Meta,Amazon,2022THE BIG DIGITAL AD PLAYERS BRING IN BILLIONS IN ADVERTISING INCOMERevenues from digital advertising in Q4 2021apps and websites.The move has hit several firms ha
45、rd,particularly ad giant Facebook,which expects to lose$10bn as a result.Its estimated that threequarters of Apple users are opting out from tracking,preventing Facebook from measuring the effectiveness of campaigns.Reducing Facebooks power to microtarget its user base comes as“a huge financial blow
46、”,according to Jake Moore,global cybersecurity adviser at Eset.“Facebook offers a wealth of user data,which is a goldmine for advertisers.By effectively turning off the IDFA and limiting the ability of businesses to measure performance,Facebook will be seriously affected,especially when coupled with
47、 a recent reduction in active daily users on the platform.”After the Apple privacy changes,advertisers can no longer see when someone was served an advert on Facebook and visited the site of the firm in question to buy something.This makes it harder for advertisers to target users on Facebook and it
48、s sister site,Instagram.“If people dont allow Facebook to collect the IDFA,it wont know whether an ad has resulted in an action such as a purchase,”says SpurrierDawes.“This means that its unable to build models of people with similar interests for the advertiser to show ads to.”For Apple,the changes
49、 are a nobrainer.Its marketing has long focused on privacy as a selling point.But for Google,which is introducing similar changes in its Android operating system,matters are not as simple.Unlike Apple,Google has a business model that is based on advertising,so the changes coming to Android are not a
50、s drastic and will occur more slowly,giving brands time to adjust.“Apple has nothing to lose”by making life difficult for advertisers notes Foster.“But if Google makes advertising harder by being more expensive or because response rates drop advertisers will go elsewhere.Money flows to whatever work
51、s at any given time.There is no loyalty;its based on performance.If something works,brands will move very quickly.”Theres no doubt that the digital landscape is changing.Brands that can adjust to shifting consumer perceptions will be the winners in this brave new world.Like Apple,many are looking at
52、 making trust a point of differentiation.“It is customers data,so they should have the flexibility to choose the level of engagement they want to have with the brands they trust,”stresses BarberMiller.If a brand cant thrive without invading its customers privacy,it is“a bad business”,says Spurrier D
53、awes.“Lawmakers have made it clear that users must consent to data sharing and people are opting out,so brands must plan for this.It should be seen as a positive.Firms need to examine why anyone would allow them to collect,store and use their data and they need to give real value back to customers.”
54、We want to prevent people from seeing an ad so often that it becomes irritating.These changes will make it harder to do that automaticallyGoogle$61.2bnMeta$32.6bnAmazon$9.72bn bizoo_n via Getty Images Wachiwit via Getty ImagesCommercial feature How has the regulatory landscape affected the digital a
55、dvertising industry?Pretty much every call Im on now is about the impact of operating system and browser changes.While tech giants like Apple and Google are reviewing and changing how advertis-ers can operate within their platforms,the future of first-party data is much more assured.First-party data
56、 owned by publishers or brands is the most valuable information they possess.It helps them understand who their most profitable customers are and how to find new ones that are similar.Yet,to make use of this knowledge they must work with partners that provide soft-ware,connectivity and services to h
57、elp them achieve superior marketing out-comes.A lot has already changed in just the last three years and that is only going to continue.Amid the rapid rise of omnichannel,how vital is first-party data to accelerating growth?Using first-party data for key marketing functions can boost revenue by up t
58、o 2.9 times and increase cost savings by 50%.Ironically,the research highlighting these omnichan-nel benefits was conducted by Google,a data giant which promotes closed environments.First-party data also includes a lot of important omnichan-nel components that you dont get from traditional digital a
59、ctivation,like discounts and loyalty schemes.Tesco,for example,is able to combine data in its loyalty cards with digital activation,providing a much more robust picture of the overall customer journey and an ability to find new audiences.When you stick with a single channel and dig-ital approach,you
60、re generally hitting the same audiences time and again,resulting in customer fatigue and the loss of profitability.Even if thats part of your strategy,eventually you need to find new audiences.The more offline and online channels you connect,the better,and most of that is driven by first-party data.
61、The potential benefits from first-party data are clearly attractive,but why are marketers and media owners struggling to derive optimal value at present?The simple answer is its hard.Especially if youre pulling data from multiple channels,its difficult to collate it all.Its one thing to col-lect fir
62、st-party data,but how do you activate it?Not every channel speaks the same language.First-party data is extremely rich,you can under-stand your consumers in ways you couldnt before,but it doesnt show the whole customer journey.You only have the data that you have.However,if youre able to link your d
63、ata across the inventory other companies own as well as enrich it with a data part-nership,you can start getting deeper insights into your customers and eventually other audiences,too.Unlocking the real value of first-party data relies on data partnerships.Which sectors are leading the way in the fi
64、rst-party data movement?Not too surprisingly,retail media has been a big growth area.Weve certainly seen that retailers have been the most open to first-party data strategies and to realising their strength.Ive already mentioned that Tesco has an open mentality,but weve also seen Asda working direct
65、ly with brands as a publisher to increase sales.Boots,meanwhile,is utilising data to launch its own media business.I expect other industries to follow.Finance and travel companies see huge online visitor numbers and can offer a range of incentives through the pur-chase journey;theres a lot they have
66、 to offer relevant brand advertisers.Are we now officially in the age of first-party data?Thats certainly the direction of travel,but we have a long way to go.There are a few hurdles we need to get past first.First,news around user privacy can worry marketers so we need more education that,actu-ally
67、,sharing first-party data must be First-party data,the open web and the future of addressable advertisingQ&AThe rise of first-party data along with regulatory changes and responsible addressable inventory will improve the transparency and effectiveness of digital advertising,says Ryan Cook,UK managi
68、ng director at CriteoUnlocking the real value of first-party data relies on data partnershipsdone in a responsible manner.The economic environment has also been a barrier.When budgets are reduced,marketers tend to focus on reaching more niche audiences through the channels they are most familiar wit
69、h,which means relying on third-party addressable inventory.But as they see the omnichannel rewards of first-party data inventory which frankly is also more cost-effective thatll gradually change.As marketers move outside closed digital environments to an open internet,theyll build a better understan
70、ding of the customer journey across different publisher properties.Meanwhile,publishers will find that as their inventory becomes less addressable through third-party cookies,they will see fewer buys on their sites.These realisations will drive momentum toward responsible addressable media identifie
71、rs.How is Criteo helping to maximise the value of first-party data in advertising strategies?Criteo has been helping mar-keters and media owners drive outcomes and solutions for their business for years,but weve now taken it a step further by launching our global commerce media plat-form,underpinned
72、 by large-scale commerce data and commerce-fo-cused AI.Over 22,000 marketers are spending within this platform today and we are seeing over 685 million unique users on a daily basis,across 3,500 different categories.All of this is culminating in a massive amount of data and,ultimately,creating a dat
73、a partnership that everybody can take part in.It almost becomes a first-party data marketplace.All key parts of the advertising ecosystem consumers and the brands and media sources they love will benefit from the open web,and our platform ensures theyll all get the value they deserve.For more inform
74、ation,visit OPEN WEB RETAIL MEDIA ALREADY MORE EFFECTIVE THAN WALLED GARDENS?Percentage of 250 UK-based brand marketers who think that open web retail media is more effective in these areas45%53%52%47%Return on ad spendBrand relevanceSales growthAudience targettingCriteo,2022R A C O N T E U R.N E TF
75、 U T U R E O F A D V E R T I S I N G0706f you happen to know your Ascari from your Andretti and your Zandvoort from your Zeltweg,youre probably an avid Formula One fan,but you dont have to be an aficionado to enjoy its many twists and turns.Arguably,F1 reaches a wider audience than that of any other
76、 sport through the extensive global coverage of grand prix weekends,popular documentaries such as Netflixs Drive to Survive and a whole host of social media campaigns and marketing partnerships.The controversial Abu Dhabi Grand Prix in December 2021,in which Max Verstappen pipped Sir Lewis Hamilton
77、to the drivers world championship on the final lap of the season,“pulled in a bigger global audience than the Super Bowl managed and there were 22 grands prix last year”,notes Claire Cronin,CMO at McLaren Racing.Founded in 1963 by New Zealand driver Bruce McLaren,the team is one of the most successf
78、ul and widely recognised names in motor sport,having won 183 grands prix and eight constructors championships since making its F1 debut in 1966.It also runs two other racing teams in the IndyCar and Extreme E series and McLaren Shadow,its esports quipe of virtual drivers.“There are 17 races in IndyC
79、ar this year,five in Extreme E and ano ther dozen in esports.Were on television a huge amount,”Cronin says.“In effect,the cars serve as mobile billboards,both for McLaren and for allthe brands that choose to partner with us.”But how a brand such as McLaren reaches its audience is about so much more
80、than a 200mph logo.When it comes to consumer engagement,its all about partnerships,platforms and content.“Youll never see a McLaren Racing commercial on television,but you will seeour partners,particularly in the technology space,featuring us in their TV advertising to help tell their story,”Cronin
81、says.She cites the example of Cisco Webex,which entered a partnership with McLaren to provide its communications systems,initially at trackside and then at the teams HQ near Woking in Surrey as hybrid working became the norm.Cisco Webex made a film about McLarens setup and used it as the basis of a
82、TV commercial that showcased the work ofboth companies.“Increasingly,our brand partners are saying:If we want to stand out in our category and bring our products unique selling points to life,featuring McLaren in our advertising is a really smart way to do it.We know our strategy of partnering with
83、brands early in consumer lifecycles is making a difference,”Cronin says.“The team is turning 60next year and were very focused on how we can bring more fans into our world.A survey last year found that McLaren was the overall fan favourite,among not only avid followers of the sport but also women an
84、d generation Z.”She points to the range of brand activations that McLaren has used to reach as wide an audience as possible.“If we want to get more women,children and people from diverse backgrounds interested in the sport and encourage them to come and work for us so that we win the fan engagement
85、battle and the war for talent,we need to use many touchpoints to reach them.For instance,we did a big launch event for our new car,like everyone does,but we were the only team that unveiled ours as aLego Technic model too.”And then theres its ambition to extend its reach into other forms of motor sp
86、ort.McLaren is the only F1team so far to have entered the As Formula Ones global charm offensivegoes into overdrive,McLaren Racings CMO,Claire Cronin,explains how the team is becoming more accessibleto consumers than ever We want to bring fans right into our environmentIMorag Cuddeford-JonesParticul
87、arly in our 60th birthday year,you will see lots of newproductsworld of Extreme E offroad racing for electric sports utility vehicles,she says,adding:“We see that the future is new platforms and bringing fans of all ages into all those different platforms.”Brand extensions and especially merchandise
88、,such as the line of apparel made in partnership with premium sportswear brand Castore are central to Cronins strategy.Merchandise not only gives fans a chance to own the brand beyond race day;it also plays its own part in subtly increasing brand awareness.“Particularly in our 60th birthday year,you
89、 will see lots of new products coming to market that are an authentic extension of who we are,”she says.Cronin notes that products featuring McLarens papaya orange racing livery and its distinctive“speedmark”logo are top sellers on its ecommerce site.But she stresses that the team will not be painti
90、ng the world papaya at any cost,adding:“You wont see an explosion of tat at airports,where you can pick up cheap key fobs,whistles and pens that arent sustainable.”Although McLaren is clearly aiming at the premium end of the market with its merchandising strategy,as befits the highoctane glitz of F1
91、,Cronin feels that the far more inclusive nature of the teams communications has made it a favourite among fans.There is content for everyone,from the“avid fan who soaks up all the details”to the“trends fan”who came to the sport I N T E R V I E W through TV coverage or the Drive to Survive docuserie
92、s,she says.YouTube videos showing behindthescenes footage,fan events and competitions all bring what could otherwise be seen as an exclusive and elitist sport closer to the consumer,whoever they might be.Even when whats being served up is overtly commercial in nature for instance,the social media sk
93、it in which driver Lando Norris and his then teammate,Carlos Sainz Jr,delivered Amazon packages and bottles of CocaCola around Austin,Texas,just before the US Grand Prix there in 2019 fans ofall types still love it.The video,entitled Driven to Deliver,was the most watched piece of social content pro
94、duced in Amazons name that year.She acknowledges that,when it comes to such material,McLaren is not only competing with Mercedes or Red Bull for fans and sponsors;its competing with other sports.“If we want to attract brands to work with us,we must do the most innovative things that amplify their me
95、ssages and speak to our fanbase because,ultimately,that is what theyre trying to reach.We view everything we do through the lens of how that will excite the fans.”Despite the global audience that F1 commands,Cronin is still working hard to bring more people over to the fast side.One such initiative
96、was a bid to convert a pair of dyedinthewool American football supporters during the week of the US Grand Prix in November 2021.McLaren Fan Heist,the 25minute YouTube video of the actionpacked event,featuring Norris and his current teammate Daniel Ricciardo,has had almost 1.2 million views.Another v
97、ideo,with nearly double the number of views,was produced in partnership with global hotels group Hilton,which had run a competition for members of its loyalty programme.In it,Norris chauffeured the winners son to school in a McLaren 720 supercar.The creative concept was originally a fans idea.“We wa
98、nt to do something that no other team would do and we want to bring fans right into our environment,”Cronin says.“Youre not a logo on the car.Youre in the team.”Gulf x McLarenGulf x McLarenMcLaren Racing x LEGOMay contain spoilers:McLarens F1 drivers,LandoNorris(left)and Daniel Ricciardo,with carsin
99、the limited-edition Gulf Oil International livery produced for the 2021 Monaco Grand PrixCronin:If we want to attract brands to work with us,we must do the most innovative things that amplify their messagesSchoolyard of bricks:partnering with Lego helps McLaren to attract the next generation of F1 f
100、ansWe view everything we do through the lens of how that will excite the fansR A C O N T E U R.N E TF U T U R E O F A D V E R T I S I N G0908Commercial featureBrands get creative as mobile ads are transformedIncreased privacy protections dont have to limit the opportunity for mobile advertiserst is
101、one of the most sought-after advertising slots in the world;halftime during the Super Bowl.Tens of mil-lions of additional viewers tune in almost exclusively to see the ads.So when you invest eight figures in a commercial,you want to be sure that you get it right.Like many of the most memora-ble adv
102、erts,Coinbases 2022 Super Bowl offering combined surprise with wonder.There was no need for a pithy slogan,no budget spent on A-list actors.Instead,viewers were greeted with a simple QR code that bounced,pong-like from one corner of the screen to another.It changed colour each time it bumped against
103、 the corner of the screen in an obvi-ous nod to the screensavers of yes-teryear.But scan the QR code on your phone and you were taken to a land-ing page,which redirected both new and existing customers to the most relevant offer.Twenty million people visited the landing page,and downloads of the Coi
104、nbase app increased 300%bumping the company up into second place in the App Store charts.It was a good example of how brands are rethinking advertising for a mobile-first audience,with innova-tive user experience at the forefront.The pandemic accelerated the shift towards a world where almost everyt
105、hing shopping,communi-cating and dating is happening on mobile.Many larger and legacy brands have found themselves play-ing catch-up.Conversations with consumers are no longer happening on the high street but on the screen.But as the shift to mobile has gath-ered pace,advertisers have had to adapt t
106、o growing concerns from consumers over the use of their data.Few serious advertisers would ever want to be seen as making a potential customer uncomfort-able.User-level data strictly belongs to the individual unless agreed otherwise.Fears over pri-vacy and tracking had the potential to negatively af
107、fect the relationship between businesses and their cus-tomers to the benefit of neither.Big tech companies like Apple,who already owned the digital real estate on which mobile advertisers thrived,introduced new privacy restrictions.A recent iPhone update,iOS 14.5,introduces a pop up when you open a
108、new application which gives you the option to ask app not to track.If selected,the company behind the app cannot access your phones identifier for advertisers(IDFA),which is used by app makers to dis-tinguish different users and under-stand how their marketing campaigns are performing.Since Apples a
109、pp tracking trans-parency(ATT)was implemented,data from AppsFlyer has shown that as of December 2021,globally only 46%of customers who saw the prompt have opted in to have their data collected while they use such apps.The over-all effectiveness of ad campaigns has suffered as a result:ads on Faceboo
110、k became 66%more expensive,all while reaching 22%fewer people,according to data quoted by eMar-keter from performance marketing agency Tinuiti.As a result of these changes,it has also become more challenging to measure the impact of market-ing campaigns,and justify ad spend.IDFA is largely used by a
111、dvertisers to understand which ads were working.For example,if a user saw an ad for an app,clicked on it and installed it,advertisers could use that informa-tion to understand what campaigns and channels are working,and better reinvest in future marketing cam-paigns.IDFA also helped advertisers run
112、more relevant campaigns,and create experiences that are bespoke to the user.But these challenges are not insurmountable,say industry lead-ers.AppsFlyer helps power and measure the mobile marketing cam-paigns of almost 90,000 different apps.Managing director across the UK,France,MENA and Turkey,Paul
113、Wright,says that after the iOS 14.5 update:“It suddenly dawned on a lot of advertisers that the decisions they needed to make about the effi-cacy of their campaigns could actu-ally be made at the aggregate level.If you could continue to work with-out exposing user-level data,brands could still be in
114、credibly effective.”Companies like AppsFlyer are put-ting privacy at the heart of their practice while prioritising the use of new technology to make up for lost granularity.Data clean rooms col-loquially known as the Switzerlands of data offer safe environments where different sources of data can b
115、e matched and enriched without anyone being able to access user-level information.Machine learning models,coded bespoke for individ-ual clients,allow advertisers to pre-dict the success of their campaigns even if consumers havent enabled the ATT pop-up.As well as embracing new tech-nology,brands sho
116、uld also focus on building the relationship with the consumer,and being transparent with them about what data is being used,how theyre using it,and why,all of which can be done as part of a pre-prompt shown before the main ATT prompt.Once this trust is established,Wright says,the customer may be mor
117、e will-ing to share their data,because they will know how they will benefit.Theres an increased focus on crafting innovative multimedia jour-neys,where the jump from billboard to TV,or desktop to mobile can all be part of the same advertising expe-rience.These more seamless expe-riences are often po
118、wered by deep linking technology,which allows mar-keters to send consumers to the rel-evant destination in the app;whether thats a specific product page,dis-count page or offer.Coinbases 2022 Super Bowl offer-ing was a great example of this,and a reminder of how mobile app brands can make the most o
119、f technology to deliver smart,creative,multichannel advertising without compromising on measurement or privacy.Wright says:“Our goal is to find the safest possible way for users to share their data without it being compro-mised in any way while still giving that granularity to advertisers and media
120、owners so that they can opti-mise their advertising campaigns.Otherwise,we end up in this world where were back with spray and pray and no one wants to be bombarded with irrelevant ads.”Customers and companies alike benefit when advertising is relevant and wanted.As the world increasingly relies on
121、connectivity and communi-cation,there are few better places for businesses to be than on mobile,especially now that consumers can feel in control of their own data.To find out more,visit Once trust is established,the customer may be more willing to share their data,because they will know how they wi
122、ll benefitIAs the cost of living in the UK spirals,they might reasonably be expected to slash their ad expenditure.But,on the contrary,many areplanning to increase such investmentsBattered by inflation,brands review their advertising budgetsrom groceries and housing to energy and transport,the cost
123、of living in the UK is rocketing.Some companies will be planning to spend less on advertising to control their costs,but is this a wise move or a false economy?Inflation is running at a 30year high,forcing firms either to absorb higher costs and cut their profit margins or to raise their own pri ces
124、.As can be seen from the increase in costs of everyday items,many are choosing the latter,although its a risky move for brands when consumer spending is being squeezed.What should marketers do during periods of economic turmoil?Cutting expenditure on advertising is clearly an option,but some view th
125、is as detrimental over the long term.Take Unilever,for example.As inflation hit 5.5%in January,the company behind brands such as Marmite,Magnum and Dove committed to maintaining its 5.8bn in global advertising budget as it pushes through price increases.Unilevers CEO,Alan Jope,told investors:“We wou
126、ld certainly not trim brand marketing investment if we felt that it would compromise the health of our brands.”Procter&Gamble,which makes products such as Ariel,Gillette and Pampers,is also preserving its 6.2bn global ad budget as it raises the price of some lines.But coffee chain Starbucks takes a
127、different view.Its lifting the prices of many of its products despite a 31%increase in profits for the last quarter of 2021,explaining that its margins are under pressure from the effects of rising costs.Its also set to reduce its planned marketing expenditure this year.City analyst Ian Whittaker wo
128、rks as a consultant at outdoor ad company JCDecaux.He thinks the right strategy is to invest.Brands need to trumpet their quality credentials and set out to persuade people to pay extra for products rather than switch to cheaper,ownlabel alternatives,Whittaker argues.Those that shrink pack sizes wil
129、l need to restate their appeal with bigger,bolder advertising campaigns.“If you look at companies across the board,they are trying to push through significant price increases at the moment in some cases,quite healthy doubledigit rises,”he notes.“In order to get those price increases through,you have
130、 to persuade consumers of the need to buy your particular products.”The rise of new competitors often digital should also make wellestablished firms wary of cutting their advertising expenditure.Startups including rapid grocery delivery services such as Gorillas and Getir,recipebox providers,online
131、pharmacies and usedcar sellers are all investing heavily in advertising,forcing incumbents in a range of sectors to hit back with their own campaigns.A powerful example of the inflationary effect is the UKs market for used cars,where prices rose by 28%over the first 11 months of 2021 the highest inc
132、rease in Europe according to Indicata.Used cars are in high demand as the production of new vehicles declines as a result of a semiconductor shortage.This has powered strong sales at online secondhand dealers Cazoo and Cinch,which have been heavy advertisers over the past year.Lucas Bergmans,brand d
133、irector at Cazoo,reports that the surge in inflation has not influenced his companys ad strategy in the short term and that demand for used cars is strong,despite rising prices.“We are a disruptive brand thats looking to transform how people buy cars,so our messaging focuses on explaining the benefi
134、ts of buying online from Cazoo rather than foc using on price,”he says.But Bergmans is concerned that persistent inflation could damage consumer confidence and make life more difficult for advertisers over the longer term.“If inflation is here to stay,in terms of both consumer and media prices,we co
135、uld see reduced consumer demand and higher prices for advertisers to reach smaller audiences,”he says.“Advertisers will have to adapt their approach to maintain a return on their marketing investment,in terms of both what channels they invest in and how they evolve their messaging and overall offeri
136、ng.”The outlook for ad spending in the UK over the coming years is strong,according to projections by media agency Zenith.It forecasts a 6.3%increase in spending to a record 29.5bn in 2022,after a 26.2%rise last year and a 3.2%fall in 2020.Total ad expenditure is set to hit 32.4bn by 2024,it predict
137、s.This will be partly because of heavy spending on ads by startup brands,says Zeniths head of forecasting,Jonathan Barnard.Its also down to the switch to digital marketing,which requires brands to advertise throughout the customer journey,influencing the research and consideration process as well as
138、 the final purchase.This heightened interest in advertising is leading to media price inflation.For example,airtime prices are rising for commercial TV(up by 5%year on year,according to Zenith),despite a decrease in the number of viewers,thereby making it costlier to reach the same number of eyeball
139、s.One response to this would simply be to spend more,says Charles Vallance,founding partner and chairman of ad agency VCCP.But,if that isnt an option,more creative ways exist to make your budget go further.“If you cannot spend more,the answer is then to invest better in features that really cut thro
140、ugh,”says Vallance,who calls such features“distinctive brand assets”(DBAs).They can be graphic,such as the blue and bubbles of O2.They can be linguistic,as with a slogan such as McDonalds“Im lovin it”.They can also include mascots such as Kelloggs Tony the Tiger or widely recognised spokespeople suc
141、h as Gary Lineker for Walkers crisps.“DBAs ensure true productivity of investment,”Vallance says.“Without them,even if you spend tens of millions,all that your brand will leave behind is a trail of communication rubble.With them,you will build a communication wall,even if your budgets are modest and
142、/or threatened by inflation.”Creating these powerful symbols enables brands to cut through the clutter of media saturation and promote their quality credentials in a world of rising prices,he argues.Previous periods of high inflation coincided with whats widely considered the golden age of advertisi
143、ng,with exciting product launches and audiences eager to receive new messages.The return of inflation,combined with the promise of digital media,the rise of online startups and a renewed creat ive focus,could form the building blocks of a new golden age.FDavid BenadyIn order to get price increases t
144、hrough,you have to persuade consumers of the need to buy your particular productsE C O N O M YINFLATION HITS A 30-YEAR HIGHThe consumer price index-a measure of the change in prices paid by UK consumers for goods and services198902%4%6%8%10%Office for National Statisics,2022251
145、99692000200042005200620072008200920000022 Bloomberg Creative via Getty ImagesR A C O N T E U R.N E TF U T U R E O F A D V E R T I S I N G1110 After a year of disruption,the UKs advertising industry enjoyed an impressive comeback in 20
146、21,posting a year-on-year growth rate of 26.4%.Itsrevenues were boosted by a summer splurge in spending,during which advertising across all media types recorded double-digit increases.Infact,the sectors rebound in the UK is projected to be larger than that in any other major international market,inc
147、luding the US,China and France.GROWTH IN ADVERTISING EXPENDITURE IS EXPECTED TO CONTINUE IN 2022UK projected year-on-year%change in ad spending,by media type2021 year-on-year growth projection2022 year-on-year growth projectionof companies in the UK are planning to increase their total marketingexpe
148、nditure in 2022-23Projected UK advertising expenditure for 2022Institute of Practitioners in Advertising,202134.5%32bnUK ad expenditure in Q3 2021,representing the largest summer spend on record7.3bnThe growth difference in the UK ad markets bounceback spending in 2021 compared with that of other in
149、ternational markets,including the US,China and France7.3bn+12%Institute of Practitioners in Advertising,2021KNOWING THE CUSTOMER IS A KEY FOCUS FOR ADVERTISERSGrowth in UK marketing budgets by category,Q4 20217.3%7%4.5%3.8%3.1%2%-5.9%-6.3%-6.3%-8.3%-11.2%Other online advertisingDirect marketingMain
150、media marketingPublic relationsEventsPublished brandsAudioOut of homeOtherVideoMarket researchSearchOnline displayTVCinemaRegional news brandsOnline classifi edOut of homeDirect mailNational news brandsRadioMagazine brandsCONSISTENT REVENUE GROWTH IS PREDICTEDProjected UK ad spendingADVERTISINGS GRE
151、ATRECOVERY+11.1%+31%+8.3%+26.9%+5.3%+26.1%+3.9%+25.8%+25.4%+26.8%+17.1%-6.8%+1.4%+10.9%+21.7%+4%+20.4%-3%-6.1%+7.8%+70%201.1%+37.5%+13.7%Video-on-demand segmentOnline segment+35.7%+35.4%Digital segmentOnline segmentOnline segmentOnline segment+17.4%+6.4%+41.4%+10.4%+45.9%-1%+33.2%+0.9%Advertising As
152、sociation,World Advertising Research Center,2022+2.5%+2.3%+2.5%+1.3%30bn30.5bn31bn31.5bn32bn32.5bn33bn33.5bn34bn20232023202420252026Institute of Practitioners in Advertising,2021Institute of Practitioners in Advertising,2021+26.4%OVERALL20212022+8.5%R A C O N T E U R.N E TF U T U R E O F A D V E R T
153、 I S I N G1312Commercial featurettention around the metaverse is growing,partly because of the significant investments being made into the space by technology and gaming giants.The development of Facebooks Horizon Worlds platform,Microsofts recent acquisition of Activision and the growth of environm
154、ents like Roblox and Fortnite are all encouraging excitement.There are also numerous popular niche plat-forms in the evolving metaverse space such as Sandbox and Decentraland.The challenge for companies looking to grow their brand presence in these environments is to identify where the value lies.“W
155、hile the metaverse will offer huge potential,brands mustnt lose their way among the many options in front of them,”says Josh Mandel,chief executive at the visual effects,creative production and experien-tial marketing business The Mill.“Its important to focus on where their audiences are and what mo
156、tivates them,so they can reach them well.”A key decision will be whether to launch in these nascent spaces now,The metaverse transforms the brand playbook Brands must understand motives in virtual environments if they are to create powerful,engaging experiences that build loyalty.Successful navigati
157、on of these arenas will add powerful value to campaignsor to sharpen a longer term strategy.Either way,brands wanting to be part of a metaverse need to commit to the idea of living in a virtual way,Mandel explains.“These are persistent environments and brands entering them need a multi-year plan add
158、ressing how they will build,maintain and evolve their existence.”Early metaverse experiences are already providing lessons,with fash-ion brands proving particularly inno-vative.Nike,for example,has been active in the Roblox game,creating its own bespoke world called Nikeland,while luxury fashion hou
159、ses such as Burberry,Gucci and Balenciaga have enabled users to dress up their metaverse avatars in virtual garments.However,it is clear that any brands should avoid excessive selling in places where people are looking for commu-nity and fun.“It comes down to properly understanding audience motivati
160、ons and creating desire for the brand in a way that resonates positively,”Mandel says.Once brands have chosen where they want to appear,they then need to blend in aesthetically and technologically,while still reflecting their own image.They are increasingly going directly to visual effects(VFX)and c
161、reative tech-nology specialists to succeed.Many are working with The Mill,the worlds largest visual arts company with a more than 30-year VFX background,deep design capabilities,augmented and virtual reality prowess,and a roster of experienced directorial talent.“Our conversations often begin with w
162、hich metaverse platforms brands want to show up in-and how,”says Mandel.“The skills we offer in these environments mean we can guide their approach and use our talent resources to bring ideas to life.”Among those that have worked recently with The Mill is Riot Games,which commissioned the company to
163、 build an experience for popular virtual metal band Pentakill.The band stems from the most popular PC game world-wide,League of Legends.Riot Games Music wanted to maximise the impact of Pentakills album launch,so collabo-rated with The Mill to treat players to a 45-minute exclusive set staged entire
164、ly in the metaverse,with content tailored to meet the visual and experiential expectations of the games fans.Meanwhile,retailers,consumer goods brands and even business ser-vices firms are trialling metaverse experiences.These often take place through consumer devices,but are increasingly emerging o
165、n powerful in-store and in-office technology,as the boundaries blur between the vir-tual and the physical worlds.As companies aim to be at the sharp end of brand experiences,the options before them are transforming.“Now is the time for brands to build a real plan for the metaverse,”concludes Mandel.
166、“There is already a broad advertising playbook and the metaverse should sit right alongside current ad channels from the web,social media and email,to TV,radio and print.Brands should be thinking seriously about how the metaverse will evolve,so they can make the bold bets needed to get ahead.”To fin
167、d out how to build powerful brand experiences in the metaverse,visit ABrands should be thinking seriously about how the metaverse will evolve,so they can make the bold bets needed to get aheadHBOs social VR experience Sanctumarketers are adapting to the postpandemic climate and its moving at lightni
168、ng speed.After two unpredictable years mired in financial uncertainty,its understandable for brands to get sidetracked by shortterm metrics over longterm brandbuilding.As budgets restrict,there is additional pressure for every penny of spend to drive positive value.So,if brands want to convince stak
169、eholders to confidently invest in creativity,now is the time to focus on effectiveness.Brands have to not only make the case,but prove the case,that creativity drives growth when it is effective.At LIONS we know,through analysing 69 years of Lionwinning work,that truly effective creative work not on
170、ly drives bottomline growth,it changes behaviour and helps to solve the biggest challenges facing our world,over the long term.Effectiveness goes way beyond views,clicks and impressions.2021s winner of the Creative Effectiveness Lions Grand Prix,celebrating creative work that demonstrates how an eff
171、ective strategy,rooted in creativity,has met its business objectives,is a case in point.Nikes Dream Crazy campaignlaunched in 2018 with a social media post featuring a black and white image of former NFL quarterback,Colin Kaepernick and the words Believe in something,even if it costs you everything.
172、The campaign by Wieden&Kennedy Portland,won numerous awards.Nike then expanded the work,collaborating with sports people including Serena Williams and Lebron James.It was after three years commitment,in 2021,that its effectiveness could be clearly demonstrated.Crazy Dreams had earned$163m of media,a
173、dded$6bn of value to Nikes brand and boosted sales by 31%.Creativity and effectiveness must go handinhand for marketers to see consistent results that satisfy the CFO.In the LIONS State of Crea-tivity study this year,we collated insights from 3,300 people,across the global creative industry.It revea
174、led some fascinating insights.Convincing stakeholders to invest in creativity was the biggest challenge cited by creative agencies,production firms and media companies alike.Some 41%of brands also said they are still struggling to get buyin from stakeholders.The entire industry needs to clearly fram
175、e creativitys value in business.To help brands build creative confidence,agencies must upskill their talent in key areas:82%of brands and 78%of creative partners said that understanding creative effectiveness was very important to upskilling the workforce.Some 86%of creative partners believed it was
176、 most important to upskill talent in strategic creative thinking.Brands and agencies need a shared language and understanding of creative effectiveness for it to thrive.Spotlighting case studies where creativity has a positive impact on growth will help to make the case.This is why,in 2021,LIONS and
177、 WARC developed the Creative Effectiveness Ladder,in partnership with effectiveness expert James Hurman.It aims to help businesses identify which creative outcomes they want to achieve and the kind of creativity needed to reach those goals.We published the results in The Effectiveness Code whitepape
178、r,which provides a universal language framework and outlines clear groupings to measure and articulate the effectiveness of creative work.We took the principles found in the code to reshape the Creative Effectiveness Lions,bringing this new language to the core of the award.Expanded use of this will
179、 enable the creative community led by strategists and planners to measure and communicate internally about what excellence looks like,and for creative companies to bring brands along on the journey.So,to build creative confidence and investment,lets focus on proving the effectiveness of creativity a
180、nd ensure were all speaking the same language.The ad industry needs to be able to clearly frame creativitys value in businessMI N S I G H TSusie WalkerVice-president of awards and insight Cannes LionsThe industry has never been renowned for its credibility,but certain online practices,if allowed to
181、continue proliferating unchecked,could erode what little confidence remains in its activitiesFixing a hole:can ad land ever win over the public?hings have come to a pretty pass for your profession when research reveals that consumers have less faith in its output than they do in that of estate agent
182、s,journalists and even politicians.An Ipsos Mori poll in October 2020 found that 13%of UK adults trusted advertising executives to be truthful,compared with 16%in the case of government ministers.Public trust in advertising has in fact risen in absolute terms since hitting rock bottom seven years ag
183、o,if studies by the Advertising Associations thinktank,Credos,are anything to go by.In 2015 the industrys lowest point for credibility on record Credos found that 44%of consumers trusted advertisers to at least some extent.By 2021,the proportion had risen to 55%.Despite this,all the other industries
184、 used by Credos for comparative purposes saw bigger improvements over the same period,which means that advertising has fallen further behind the pack.As the Advertising Association admits in the accompanying research report,Rebuilding Public Trust in UK Advertising:“There is unmistakable evidence to
185、 show that advertising has a clear public trust problem.”Rik Haslam is executive creative partner at the Brandpie consultancy.He says that there are“many reasons why trust in advertising is so low”.One development thats been instrumental in eroding credibility is the online tracking of consumers,who
186、 have been bombarded by advertisers with what he calls lowest commondenominator messaging.“We have been bodyshamed,missold to,spammed and pestered to the point of almost complete cynicism,”Haslam says.Misselling is a serious concern,particularly for businesses operating in sectors such as finance an
187、d healthcare,where trust takes decades to accumulate and days to lose.“The online advertising ecosystem is very complex,so consumers do notunderstand whats happening,”notes Robin Karakash,senior marketing director for Europe at Mozilla,which owns the Firefox web browser.This factor makes them more s
188、usceptible to scams and less likely to make the connection between the data they divulge and the advertising thats served up to them.Thats a concern for businesses too.For example,Starling Bank has pulled its paid advertising from Facebook and Instagram until Meta can show that its doing enough to p
189、revent fraudulent ads from appearing in users social media feeds.In a blog post published in January,the banks founder and CEO,Anne Boden,explained:“We want to protect our customers and our brand integrity We can no longer pay to advertise on a platform alongside scammers who are going after the sav
190、ings of our customers.”Meta has stressed that it is“dedicating significant resources to tackling this industrywide issue on and off our platforms”,but it remains tobe seen whether such efforts will satisfy Boden.Meanwhile,the Advertising Association believes that the profession needs to focus on pro
191、ducing more highquality ads that consumers find entertaining and informative.Its CEO,Stephen Woodford,says:“The things that drive trust in advertising now are the same things that drove trust 30 years ago.Ideally,all ads should be engaging and contain something useful.”But that is far from the case,
192、of course.And the increase in the volume of content that could be counted as advertising has muddied the waters.From hypertargeted popup adverts on websites to undeclared ads by social media influencers,socalled suspicious advertising is another factor damaging perceptions of the industry,according
193、to Credos.The UK has stringent advertising regulations,but these arent always enforced to the extent that they could be.Changing that could help to rebuild trust,according to Woodford,who says:“One key attribute that we have in the UK industry,which is almost like a jewel in the crown,is the Adverti
194、sing Standards Authority.”Making people more aware of the authority and its powers including its ability to warn influencers against entering undisclosed commercial deals with brands has a dem onstrably positive effect on public trust in the industry.The Advertising Association recently ran a“test c
195、ampaign to promote the fact that the Advertising Standards Authority regulates advertising everywhere you see it”,Woodford explains.Its researchers polled the target audience and found that its average level of trust in the industry had risen by 50%after viewing the campaign.“When you realise that t
196、here is a policeman present,youre reassured that someone is there checking,”hesays.“If you know that you can complain to an authority that will enforce compliance with the rules,you feel far more secure.”While such knowledge gives reason for optimism about the future of advertising,the industry has
197、much work to do,stresses Haslam,who suggests that many companies need to review their practices.The rise of bigdata analytics has made the industry a duller place.Its time to restore some muchneeded creativity to its output,he argues,echoing Woodfords assessment.“Brands need to play a positive role
198、in society to regain the confidence of consumers.We all like an ad that entertains us,”Haslam says,recommending that they try to channel the quick wit of an advert for The Economist or the“bizarre whimsy”of the Cockney gecko campaign used by US car insurer Geico.If digital advertising doesnt learn h
199、ow to engage audiences in such a way soon,“it will become ever more annoying and erode trust further”,he argues,adding that companies also need to be more purposeful in their choice of media.“Programmatic advertising is incredibly efficient,but its also opaque.It can damage the reputation of your br
200、and if it is placed in inappropriate contexts,”Haslam warns.“On the other hand,showing up in credible,trusted environments can help to create positive associations.With this in mind,try to avoid the temptation to drown consumers in a deluge of cheap ads.Be more considered in how you take your brand
201、to market.”If the industry as a whole can follow those principles,theres a good chance that it can creep up the league table of public trust.Becoming more credible than a politician isnt too much to ask,surely?If you know that you can complain to an authority that will enforce compliance with the ru
202、les,you feel far more secureR E P U TAT I O N M A N A G E M E N TTChris Stokel-WalkerR A C O N T E U R.N E TF U T U R E O F A D V E R T I S I N G151413%17%22%33%Advertising in the metaverseNew immersive platforms offer advertisers the change to get in front of hard-to-reach audiences,but only if the
203、y respect the social aspect of consumers virtual worlds“Consumers are drawn to the interaction with their friends,not the technology,so brands would do well to enhance those social interactions,rather than interrupt them.”Its also important to remember the metaverses scaffold isnt solely made up of
204、gaming platforms and there are plenty of decentralised metaverse gateways.One example is Somnium Space,where brands can buy virtual land and then attempt to commercialise it in some way.Unlike centralised gaming gateways that have limits on the forms ads can take,decentralised platforms are unrestri
205、cted.Experts agree that when exploring these worlds,brands need to be careful they dont simply litter the landscape.“Web3 has started to unlock an entirely new wave of trends and consumer insights for brands to tap into,”says Chipotles Lieberman.“Were not only thinking about engagement opportunities
206、 in the metaverse,but were also trying to find ways to drive consumer action in real life with activations across these platforms.”Advertising will need to be even more intelligent within these decentralised spaces because it wont be as powerful:its creators are already being rewarded with micropaym
207、ents for their efforts.Brands need to harness the power and creative opportunity that is available to them by carefully curating and designing worlds that people want to spend time in.That means creating communities that dont feel out of place,dont jar with users and arent simply display advertising
208、 in another medium.“Right now,theres a rush towards a version of digital outofhome adverts and digitised experiential,but neither of these play to the social underpinnings of most metaverse experiences,”explains Hostler,who believes brands are going to have to be more agile.“Just as brands had to ad
209、just to being more conversational in the social media era,new forms of socialised immersive experiences that are born in the metaverse will appear.”What we do know is that if brands dont optimise their strategies they run the risk of alienating the very people they are trying to reach.Then,the metav
210、erse will begin to resemble Stephensons more dystopian vision,which sees endless virtual tunnels of advertising that speak to no one.n his 1992 cult scifi novel Snow Crash,author Neal Stephenson wrote about a virtual reality populated by avatars and advertising that he called the metaverse.Crowded w
211、ith franchise signs that bathed the worlds inhabitants in a loglo,it predicted the futuristic immersive internet experience that is only now slowly becoming a reality.Thirty years on from Stephensons vision,the metaverse is made up of a complex network of platforms.These have either grown from gamin
212、g,such as Fortnite and Roblox,or developed from decentralised Web3 platforms owned by users.Brands are already falling over themselves to stake their claim,with US brewer Miller Lite one of the latest.It hosted its Super Bowl ad in the metaverse after being frozen out of the traditional TV advertisi
213、ng route by a rival brands exclusive tiein with the NFL.Miller Lite built a virtual bar inside the 3D virtual world in Decentraland and its new advert premiered there,PRNewswireIJon Axworthystore in Roblox as part of a promotion that resulted in the brands highest digital sales day in its history.Tr
214、essie Lieberman is Chipotles vicepresident of digital marketing and offpremise.She believes that if brands are going to really cut through in the space it is crucial they realise theyre not the experts.“Because of the dynamic nature of the metaverse,they have to approach this new era of marketing wi
215、th curiosity and a learning mindset in order to authentically show up for consumers,”she says.To do this,Chipotle worked with a gaming studio and a social agency to create the experience on Roblox.Similarly,in 2018,when Fortnite introduced a new game mode called Food Fight,fast food chain Wendys wor
216、ked with creative commerce company VMLY&R to immerse its brand ingame and meet the audience in their own virtual universe.Wendys used the game mode to promote its fresh,never frozen,beef message by creating an avatar that looked like the famous Wendy logo.She roamed around destroying all the burger
217、freezers that appeared ingame.It resulted in more than 1.5 million minutes watched and a Twitch stream that was viewed live over a quarter of a million times.The key lesson that brands can take from these use cases is that when entering these metaverses,advertising should never disrupt the experienc
218、e as this will only lead to contempt from consumers.Instead,its crucial that the advert becomes entertainment and lines are blurred.However,brands will need to tread lightly in this new commercial format and be willing to experiment and take risks,warns Tom Hostler,head of brand experience at agency
219、 Publicis Poke.He says:“Brands need to recognise the metaverse will be more than just a digital facsimile of the real world and resist the urge to simply recreate their familiar assets and consumer interactions in those virtual places.Just as brands had to adjust to being more conversational in the
220、social media era,new forms of advertising and experiences born in the metaverse will appearT E C H N O L O GYEmarketer,2021THE METAVERSE CAUSES A LOT OF CONFUSION AMONG CONSUMERSAttitudes towards metaverse and brand among UK internet usersHave no need for the metaverse36%Think brands should build mo
221、re branded experiences in the metaverseStill dont understand what the metaverse isThink brands should advertise in the metaverseWould like to spend more time exploring the metaverseshowing on TV screens inside the digital bar.“Just being in the metaverse isnt enough,you have to make it compelling,”s
222、ays Ben Wolan,executive creative director at DDB San Francisco,the agency that conceptualised the ad.The brand went meta with the ad itself,drawing attention via its avatar host or avastar to the usual ways that Super Bowl ads try to gain traction:often with overly dramatic music,explosions and a“cu
223、lturally relevant pop star”.The strategy seemed to pay off,with visitors to the bar spending an average of 20 minutes within the ad.Wolan says this shows the power of the medium,but only if brands understand how to use it.Just as with a commercial,people will only want to interact with a brand in th
224、e metaverse if the brand respects the audience and gives them a quality experience,”he says.There have been other productive forays into the metaverse by brands.Last Halloween,for example,restaurant chain Chipotle opened a Miller Lite hosted a Super Bowl ad in the metaverse,building a virtual bar in
225、side the 3D virtual world in DecentralandCommercial featureHow has the digital advertising landscape evolved in recent years?Five years ago,we were all work-ing in a very siloed landscape.Everybody was focused on their own micro challenges,but nobody was tackling the big picture issues that marketer
226、s were facing holistically,or seeking to connect the whole environ-ment.Consumers dont think in silos and brands shouldnt either.What Ive been excited to see over the last few years,however,is a real quest for knowledge among the mar-keting community attempting to understand how each of the differ-e
227、nt parts can come together to sup-port their overall goals.Meanwhile,consumers have increasingly sought a more authentic experience.They want to interact with brands in a genu-ine way,which is prompting an urgent need for some of the jarring practices of the past to be replaced with a more comprehen
228、sive approach.Effectively,both sides of the adver-tising equation marketers and con-sumers are asking for a more con-nected experience.And as a result we are seeing a lot of convergence in the advertising ecosystem where adtech and martech companies,consultancy fi rms,advertisers and media owners ar
229、e collaborating like never before.What has been the impact of the intense scrutiny on the use of third-party cookies?The regulatory pressure pre-dominantly relates to bad prac-tices,not bad products,and a distinc-tion needs to be made there.Every marketer is extremely aware of GDPR and similar data
230、regulations around the world to better protect peoples privacy online.The regulatory environ-ment is moving quickly and the sub-stantial antitrust scrutiny facing big tech fi rms was recently compounded by regulators in the EU and UK opening twin investigations into an advertising agreement between
231、Google and Meta,which owns Facebook.As consumers weve all experi-enced that display ad for a product we stopped looking for weeks ago.This kind of use of third-party cookies is not only irritating for consumers but its largely unsuccessful for brands and an incred-ible waste of resources for markete
232、rs,who could be putting their money else-where.A correction of sorts in the dig-ital advertising landscape is long over-due and regulation will accelerate it.But thats not to say the walled-gar-den companies wont still offer value to advertisers.The industry is already looking at better practices an
233、d alternative solutions,such as ID solutions that enable marketers to continue to achieve effective tar-geted advertising but in a more pri-vacy-respectful manner.Should marketers be utilising the open web more than they currently are?The open web is a better envi-ronment for brands to under-stand t
234、heir competitive advantage and utilise insights at a niche level.Around 80%of digital ad spend goes to Google and Facebook,yet consumers in fact spend 66%of their online time outside the walled gardens,on the open web,according to a study by Open X.Theres a clear disconnect between where marketers a
235、re focusing their spend,time and resources,and where con-sumers actually are most of the time.The challenge for marketers,how-ever,is that it has historically been more diffi cult to achieve a unifi ed brand experience on the open web.The walled gardens,meanwhile,have offered marketers a phenomenal
236、way to build scale and an end-to-end pro-cess including creatives,placing ads and targeting that is very seamless.Both the walled gardens and the open web have their fl aws,but each also bring tremendous benefi ts and serve a key purpose.With so much change,how can marketers successfully adapt their
237、 advertising strategy?Agility is a core attribute of any successful marketer today.Advertising enters the age of agilityQ&APatrick Johnson,CEO of digital services fi rm Hybrid Theory,explains why agility is the most coveted attribute of the successful marketer There is no blueprint for the future of
238、 advertising and thats whats exciting about itThird-party cookies are just one piece of the puzzle.Weve got to start thinking about how to move beyond that and use all of the other amaz-ing tools available.Successful adver-tising will ultimately be about hybrid audiences,which is the blending of the
239、 social,the contextual and the ID-based worlds together.But that doesnt mean pulling a hard lever to switch from one to another its about optimising between those three worlds.Marketers need to be asking the right questions of their partners about which platforms and channels are best positioned to
240、help them in the short,medium and long term.And make no mistake,the combination of social,contextual and programmatic is fuelling the journey.How is Hybrid Theory support-ing marketers on this journey?We developed a technology that enables brands to seam-lessly move between these worlds;an intellige
241、nce platform which com-bines behavioural,contextual and social media data and gives mar-keters the ability to create custom audiences in real time.This means no matter what a company asks of us,we can adapt to it and guide them through,both from an ease-of-use perspective and an effi -ciency perspec
242、tive.For instance,we are able to derive nuggets of information from the open web world,which is very transparent,and we can carry that through into the social world,and vice versa.Through this technol-ogy,marketers can ultimately lev-erage multiple tools in a blended,agile manner which adapts to wha
243、t-ever they are trying to achieve,from launching a new product to enter-ing new markets and differentiating from competitors.The sophisticated machine intelli-gence is strongly complemented by human intelligence.This includes the work of our behavioural data sci-entists who leverage our social and p
244、rogrammatic interoperability to learn more about a brands audience and fi nd unexpected new audiences by linking affi nities.What is the future of digital advertising?There is no blueprint for the future of advertising,and thats whats exciting about it.However,even in such a fast-chang-ing environme
245、nt,we can identify three things that will play a critical role.Firstly,good agile data that can fl ex towards what a client is after.Secondly,smart technology which can also adapt and apply the data in a number of different ways.And fi nally,smart strategic people who can take all that and run with
246、it.As data continues to become the oil in the advertising universe,Hybrid Theory will be helping marketers and brands to navigate all of the changes,as well as the new technologies that will emerge.For more information,visit 3billion21million2.6xNumber of cookieless data signals processed daily Numb
247、er of weekly average impressions across over 66K websites globally Increase in scale when blending contextual and behavioural data,in addition to a 127%improvement in engagement98%Percentage of the online population leveraged by Hybrid Theorys proprietary platform to gather unique online behaviour p
248、atterns R A C O N T E U R.N E TF U T U R E O F A D V E R T I S I N G1716Commercial featureow do you reach more cus-tomers and convince them to choose your product or service over your rivals so you can scale your business at speed and secure a return for your investors?Thats the question on the lips
249、 of almost every business leader and one that digital marketing agencies are tasked with answering on a daily basis for their clients.Anthony Purkiss,co-founder and director of Londons Make Agency,says digital innovation,creative strat-egy and a strong digital identity are key to winning the race fo
250、r new cus-tomers and standing out in a crowded online marketplace.“As the world of advertising changes and third-party cookies are phased out,were seeing more clients ready to experiment with new tactics and tech-nologies,such as live shopping,NFTs,audio,private communities and inter-active virtual
251、worlds,”says Purkiss.“In this ever-changing world,your cre-ative strategy and digital brand will need to be the top priorities to get ahead of competitors.”For tech firms,particularly those that use digital marketing as their main awareness driver,creative expertise is essential.Long before the pand
252、emic,technology businesses enjoyed huge investment and growth,meaning competition for eyeballs and new customers was fierce.Soho House-designed,tech-first hospitality brand Mollies faced that very challenge when it teamed up with Make Agency in 2020 during a period of rapid growth and development.Ma
253、ke Agency digitally redesigned and took over all outward-facing digital touch points,then developed a series of highly integrated digital marketing and creative techniques to help unify the physical and digital experience when on-site at Mollies.One such development was the design and build of Molli
254、es website,the design of the accompanying app Bringing creativity to digital marketingAs the traditional methods for tracking users and serving digital ads are phased out,brands need to try out new tactics and technologies with creativity at the coreand the design of all in-room digital features.The
255、 website is the first touch point for the business,while the app acts as the digital concierge during the stay.Make Agency also manages all social media content and delivers campaigns with the sole intention of encouraging user-generated content while on-site,further plugging the gap between real li
256、fe and digital.But paid media can be a jungle for brands that lack in-house expertise and dont know how to create ads that grab the attention of customers on new channels.Thats why buy-now-pay-later brand ClearPay tasked Make with the creation of paid social media content to promote retailers such a
257、s Wayfair,Pandora,Steve Madden and Superdry across the 2021 Black Friday and Cyber Monday weekend.Make created more than 200 paid advertising creative assets,such as GIFs,static posts and videos,to sit on a host of platforms including Facebook and Instagram.That crea-tive output resulted in nearly 3
258、40,000 clicks on Black Friday,an increase of 404%year on year,and more than 271,000 clicks on Cyber Monday,up 498%year on year.But,there isnt a one-size-fits-all solution for all clients.For firms that want to win new customers in new territories,innovative creative solutions are essential.“We have
259、a market-leading US-based tech client that approached us to target people specifically in the German market,”says Make co-founder and direc-tor Tom Witcherley.“The company wanted us to talk to Germans not just in German,but in their native tone and humour.Its all about making that emotional connecti
260、on.”As Make conducted research into the German market,it noticed some immediate differences.“Whenever we dig into international markets,we use data tools and real-time conversations to understand messaging and visual trends.This is what makes our cam-paigns successful;its a combination of data and n
261、ative marketers from the target region”says Witcherley.Make has since hired three German speakers in a variety of roles to gain mastery of that market and hires native speak-ers in each new territory its clients wish to pursue.Other tools,such as SEO and social media listening,then help to paint a c
262、omplete picture of what customers in different coun-tries are searching for online and exactly what they want from their products and services.What all businesses want is to max-imise ROI and accelerate growth.Make ensures that data underpins all its creative decision-making so it can make accurate
263、decisions and squeeze every penny out of its clients digital marketing spend.“We have a back catalogue of previ-ous campaigns with an array of clients across multiple sectors.We can use that as a data benchmark to show our part-ners what really works,”says Purkiss.“Were also brave with how we adver-
264、tise our own business-were happy to be the guinea pigs before we begin work with new clients,which has lead to us topping organic results for digital agency London-related searches.”For more information please visitmakeagency.co.ukHIn this ever-changing world,your creative strategy and digital brand
265、 will need to be the top priorities to get aheadatly,Innocent,Alpro and Pepsi Lipton have all had their knuckles rapped by the Advertising Standards Authority(ASA)in the past year for sustainability claims in their advertising.Complaints ranged from the company declaring that its product has fewer c
266、arbon emissions than the dairy equivalent(Oatly),to making broad statements about it being better for the planet(Innocent and Alpro),to not specifying which parts of its packaging were 100%recycled(Pepsi Lipton).Consumers took issue with all four brands for the validity and clarity of the informatio
267、n in their advertisements which were shared collectively via press,social media,TV and on billboards and brought their concerns to the watchdog.The complaints were upheld,with the consistent ruling that the companies were not specific enough about their claims.With many companies interweaving sustai
268、nabilityrelated messaging and values into their brand identities,similar issues could arise in future.So,what can businesses do to ensure they dont fall foul of“greenwashing”advertising rules?The ASAs guidance on environmental and sustainability claims is not new,insists Miles Lockwood,the bodys dir
269、ector of complaints and investigations.But with consumer complaints around these types of adverts rising fast climbing from 143 in 2018 to 805 in 2021,according to ASA data Lockwood acknowledges that he and his team are upping the ante in terms of scrutiny and investigative resources.“The ASA has ha
270、d environmental rules in the code for decades,and weve been ruling against misleading and socially irresponsible claims for many years,”Lockwood says.“What has changed is that,early last year,we recognised we needed to go further and faster in our regulation of this because of the climate crisis and
271、 the environmental concerns that everybody,rightly,has about it.That means we have decided to apply a lot more resources to this issue and shine a brighter light on it.”Brands must think about the accuracy of the science in any messages they put forward and ensure they have evidence to support the c
272、laims context they are mentioned in demonstrates the necessary evidence and accuracy that Lockwood and the ASA require.By contrast,Innocent isnt afraid to say that it was disappointed in the ruling,as its advert was“intended to highlight important global environmental issues and the need for collect
273、ive action to make a change”.Thats the argument from Emilie Stephenson,the brands UK head of Force for Good,which is how Innocent refers to its environmental,social and governance efforts.Stephenson makes the point that the science in this area keeps evolving,so a clearer business framework that bra
274、nds can more easily adhere to is required.It was only in October 2021,for example,that the Science Based Targets initiative announced the worlds first standard for corporate netzero emissions,she says.“Until then,companies were selfdefining netzero targets.Clarity and clearer frameworks from governm
275、ents and regulators are urgently needed.”This is also why Innocent is calling on the government to get behind the Better Business Act,she says,“to help provide a framework for businesses to operate responsibly”.To ensure they stay on the right side of the advertising code,brands should be leaning on
276、 expert advice,Lockwood says.That could be support from a scientist or a sustainability consultancy.Pura,which produces biodegradable baby wipes,relies on the knowledge of its inhouse sustainability director,says chief marketing officer Amanda Richards.In light of the recent rulings,Pura has reviewe
277、d its own messages around being 100%plasticfree and 100%biodegradable.Richards is confident they will stand up to scrutiny something brands without a track record of being sustainable may find harder to assert,she says.“Those that have a history of making evidencebased claims should have little to f
278、ear or change,”Richards says.“For brands that have hidden behind fuzzy statements and empty promises when it comes to the environment,there will be a lot of work and potentially cost associated with adherence to the guidelines.”If the advertising guidelines seem too complex to follow,its likely that
279、 the business just isnt there yet when it comes to sustainability.So argues Georgina MurrayBurton,who leads brand communications strategy at Engine Creative,the agency behind Sky Zero campaigns such as The Day the Moon Came to Earth,which is told from the perspective of astronauts in space.“Some bra
280、nds are born good a sustainable business to the core that can help inform and educate people Am rerchiciae et excea quam quate natium incto incia que sam qui coremwith their offering.Others are trying to become good.Its with these clients that weve already had to have conversations about why they wa
281、nt to include sustainability messages,and whether they can and should,”observes MurrayBurton.Businesses are used to tapping into trends and culture to generate affiliation and,ultimately,sales,she says.“But this isnt a trend the future of our planet is at stake.Our industry has so much power to help
282、 shape opinions and influence decisions.The guidelines will help us avoid any accidental greenwashing.”Marketing departments,she adds,will have to work more closely with the operational side of their businesses to better understand their supply chains and practices before deciding on any claim about
283、 the environment they could make.True to Lockwoods word,the ASA plans to cast its net even wider into the world of sustainability marketing.It is currently researching the carbonneutral and netzero claims from the electric vehicle sector.It will also be exploring broader messages around carbon reduc
284、tion across energy,heating,transport and use of plastics,which kick off in the spring.That will be followed by a review of meat and dairy sustainability claims,as well as those of plantbased products.“Theres a big difference between pure puffery tokenism and claims that actually have a meaning,which
285、 have an economic impact on the behaviour of the consumer,”says Lockwood.“Thats what were concerned about here.”Advertisers beware:the ad regulator is putting its focus on businesses whose sustainability claims are not sufficiently supported by science,as a number of the biggest names in the food an
286、d drinks industry have learnt the hard wayOMaryLou CostaWe are not trying to be an enemy of the good but recent rulings show that even if you are trying to do good you still have to be accurateASA,2022COMPLAINTS ABOUT THE SUSTAINABILITY CLAIMS MADE BY BRANDS IN THEIR ADVERTISING ARE RISING FASTThe n
287、umber of consumer complaintsthey make all the way across their supply chains,Lockwood advises.When brands get it wrong,it is usually because they have failed to recognise just how complicated this aspect of advertising is.“We are not trying to be an enemy of the good here,”he says.“But these recent
288、rulings do disclose something important,which is that even if you are trying to do good,you still need to be accurate.”Businesses should be careful not to mislead by omission“because we cannot let companies off the hook just because they are trying to promote something which they say is best for the
289、 environment”,says Lockwood.“To do so would be to open the floodgates to unrestrained greenwashing,he believes.While all outwardly condemn greenwashing,the reaction from the brands involved has ranged from remorse to defiance.Oatly spokesperson Tim Knight admits:“Its clear that we could have been mo
290、re precise in the way we described What the advertising code says about green claimsEnvironmental claims are likely to mislead if the basis of the claim is not clear.Some information will be necessary for consumers to understand the basis of the claim,and unqualified claims could mislead if they omi
291、t this significant information.Marketers must consider consumers likely interpretation of a claim.Where general claims could be interpreted as absolute claims,or have multiple possible interpretations,additional information is required to make the meaning of the claim clear.Marketers should consider
292、 how knowledgeable the audience of marketing communications are likely to be,and should not assume a high level of understanding,particularly if ads are untargeted.Qualifications may be necessary to explain the meaning of certain claims.Where specific factors are likely to contribute to a consumers
293、interpretation of a claim,these factors should be included in the ad.202Green ad claims come under scrutinysome of the scientific data for parts of this campaign.”On the promotion concerned,he says:“Our core message was true but we werent specific enough when referring to scientific data.
294、”For example,the company made a claim that Oatlys oat milk generates 73%fewer carbon dioxide emissions than cows milk:the ASA found that the statement implied this was the case for all Oatly products,when,actually,it applied to just one.“We should have been more specific in our workding and said,Oat
295、ly Barista Edition oat drink generates 73%less CO2 emissions versus whole milk,calculated from grower to grocer,”says Knight.The difference between what was included and what should have been included right down to which products are mentioned and the Oatly recently had ads banned by the UK ad watch
296、dog over misleading green claimsOatlyR A C O N T E U R.N E TF U T U R E O F A D V E R T I S I N G1918MARCH 2125,2022A FREE VIRTUAL FESTIVAL ACCESSIBLE VIASIGN UP ATTHEMILL.COM/GLOBALCREATIVECOMMUNITYighend perfumes and dog food dont have much in common.However,theyre both benefiting from a new dawn
297、in the historically divided worlds of brand and performance marketing.If you have ever received a perfume sample in the post from beauty group LOral or a hand gel from Unilever then youre playing a part in this evolution,according to Jonny Grubin,founder and chief executive of product sampling platf
298、orm SoPost.Something similar is happening at Mars Petcare and its new directtoconsumer pet food brand James Wellbeloved.Such campaigns help garner valuable and measurable data around the buying intent and demographics of potential new customers.But theyre also building brand awareness.“Getting a phy
299、sical product sample to somebody helps drive performance by capturing data that can be fed into customer relationship management and other marketing activities,”Grubin explains.“But the sample also gives marketers the opportunity to improve brand engagement through the packaging,how to use guides or
300、 sustainability messaging.Its not just a message of buy,buy,buy;its a friendlier and softer approach.”At Mars Petcare,the companys brand and performance marketing teams have joined up to test different branding and images to drive the best customer conversion rate.This led to a reduction in cost per
301、 acquisition of 57%,according to a recent Marketing Week report.Jordan James head of key holder accounts at Unlockd Marketing is not surprised by the result.He says when the brand and performance marketing disciplines combine,the effect can be impressive.Performance marketing means campaigns that le
302、ad to a specific customer action such as a lead,click or sale.In brand marketing,longerterm campaigns aim to boost recognition and reputation.While a combination of both sounds like a fairly obvious approach,historically they have been strangers.Performance marketing typically works best when consum
303、ers already have some knowledge of the business and its brand meaning,making them more prepared to buy,James says.This means less expense,a shorter time from ad spend to sale and a higher return on investment.“Its important to ensure that both activities align with each other for the best effect,”he
304、 adds.“You want potential consumers to recognise the branding from the basics such as logo,colours and tone of voice,to the more complex,such as purpose and values.”The distance between the two disciplines is largely due to a cultural divide.Brand marketing is often considered more art than science,
305、while performance marketing is more science than art.They tend to up into the air and hoping for the best.With performance marketing it is easier to show it is working,that your invested dollar has turned into dollar x in revenue.”However,Grubin thinks the tide is turning,with the brand side regaini
306、ng ground.One example of this,he says,is that many of those businesstoconsumer(B2C)startups that grew off the back of performance marketing now realise that sustainable growth means looking more closely at brand marketing.“They didnt used to bother with brand building,they just sat back and watched
307、the dollars from sales come in,”he says.“But customers now want more,which means if these companies want to become bigger,they need to focus on brand and service.”More established companies are also reviving brand marketing.One example is hosting platform Airbnb,which decided in 2019 to reduce its m
308、arketing spend through search engines to focus on brand building.Chief executive Brian Chesky has said Airbnb now looks at marketings role as one of“education”,not“to buy customers”.It launched a brand campaign called Made Possible By Hosts in 2021,which the company says boosted website traffic by 2
309、0%in the fourth quarter of 2021.New Apple operating restrictions around data privacy and tracking may also have led a shift to brand marketing.James says the pandemic is another factor,with consumers eager for more“tactile,fuzzyfeeling”marketing.Major brickandmortar retailers switching to ecommerce
310、and directtoconsumer services during lockdown have also upped their brand marketing,though they also relied more heavily on performance marketing online.Despite the growing emphasis on brand,examples of major firms combining brand and performance marketing teams like Mars Petcare are thin on the gro
311、und to date.“Its all very nascent but it is slowly happening.Performance marketers are increasingly seeing the value of brand marketing,”says Tom Roach,vicepresident of brand planning at digital consultancy Jellyfish.He thinks platforms like Google and YouTube will be the key hunting ground for such
312、 combinations.“Whether you want to build your brand with someone so they think of you in the future,want to nudge someone whos in the market now towards buying your brand,or need to connect your brand with someone who already knows they want it,the platforms have more influence on consumers than eve
313、r before.They are all on there,”he says.“The platforms are both sales drivers and brand builders for your marketing strategy.”In the future,Roach expects to see more automated integration of brand building and sales activation in campaigns.“When you click on something to trigger a sale in a search a
314、d,it will have brand assets baked into it.These will include copy and graphics more aligned to the brand voice,”he says.This will be enabled by brand marketers creating content that feels native to these platforms.Their work will be supported by their own use of Google and Instagram in their leisure
315、 time as consumers.Michael Lorenzos is head of performance and growth at digital bank Silverbird.He says it will still be necessary to retrain both brand and performance marketers to move away from the current silo mentality.Marketers on both sides should be made accountable for the same metrics whe
316、n launching campaigns.“Dont stress trying to work out if conversions were from brand or performance.Realise that performance is just another way of delivering the brand message,”he says.“Put your marketing plan on a single page and define priorities for every quarter.Also encourage synergies between
317、 the brand marketers and performance marketers and reward them for actually delivering on those synergies.”For example,both disciplines could share key performance indicators(KPIs)around clickthrough rates and impressions across a combined campaign.Performance marketers could also be rewarded for hi
318、ghlighting new customers to brand marketers.“Customers buy on trust and if they see a brand wrapped around a performance ad,they will be more likely to purchase,”says Lorenzos.“These two different belief systems may finally be coming together.”airbnbBrand-building marketing and sales activation have
319、 historically operated in silos,but the pandemic,alongside the growth of social media and etail,are encouraging new combinations Long divided,brand and performance advertising are now joining forcesHDavid StirlingIts important to ensure that both activities align with each other for the best effectI
320、PA,2018BRAND AND PERFORMANCE MARKETING NEED TO WORK TOGETHERPercentage of a brands advertising budget that should go on long-term growth(brand building)versus short-term activation(performance)S T R AT E GYBRAND-ACTIVATION BALANCE MATTERSPercentage of budget allocated to brand buildingbe conducted b
321、y different individuals and teams with different priorities and focuses.Performance is alltoooften seen by brand marketers as analytical,cold and gritty:the pursuit of costperclick,customer acquisition cost and return on investment(ROI).Performance marketers,meanwhile,might see their brand counterpa
322、rts as rigid,touchyfeely and too focused on the big picture.“It can be a tall order to get them to meet in the middle and create a complementing campaign,”James says.This divide has been deepened by the arrival of media platforms like Google and Facebook,which offer better targeting,tracking and mea
323、suring tools:perfect for performance marketing.This way of advertising is comparatively shiny and new.It has therefore attracted not just big brands but startups,perhaps backed by private equity or venture capital,that are eager to quickly grow sales and customer numbers.“Everyone recognises that br
324、and marketing is critically important.You might drive one sale with performance campaigns,but I would question the longterm value of that customer,”says Grubin.“The problem is that you can put a lot of money into brand marketing,but it is hard to measure its effectiveness.Its like putting your finger Airbnb is one of a number of brands that have recently upped spend on brand marketingIPA DatabankB2C companiesB2B companies60%46%40%54%Brand spendPerformance spend1.510.5020%10%20%30%40%50%60%70%80%90%100%Peak at 62%brand56%loss of effectivenessBrand weakens20%loss of effectivenessBrand remains