Thursday, November 1, 2018

Contextual advertising: Building trust and loyalty in the new age of privacy

Contextual Advertising: Building Trust and Loyalty in the New Age of Privacy

By GumGum.
Illustration by Francesco Zorzi.

The world has gotten wise to the automated tricks of online advertising, and that means businesses have to get personal to earn the trust of consumers. Improved technology and the passage of privacy laws like the EU's General Data Protection Regulation (GDPR) make contextual advertising the popular choice for brands around the world.

According to GumGum's new report, "Contextual Advertising: The New Frontier," contextual advertising is gaining ground from other kinds of audience targeting. The report, which is based on a survey conducted by YouGov, found that almost half of all U.S. businesses rely on contextual targeting methods, and nearly one third of UK businesses use it.

Click here to download the report

One reason for this popularity is simple: It helps brands associate with higher-quality content, which builds trust and loyalty with consumers. And to help create and protect brand images and brand safety, new AI technological tools such as computer vision (aka image recognition) have made it possible to see the full context of what internet users see on a page, which opens up advertising opportunities on sites that highlight a product, brand, or topic through an image or gallery rather than text.

These are just a few of the changes that are already being implemented, and more innovations will be keep coming. Businesses are adding contextual advertising to their mix of strategies, and it's been paying off. There is already plenty of evidence that customers respond well to this approach. Privacy and information security are only going to become more important, so the time to get creative about contextual advertising is now.

Download the report for further insight into how context has become the new paradigm in advertising.

Click here to download the report

About

Founded in 2008 in Santa Monica, California, GumGum is a company dedicated to teaching machines to see in order to solve hard problems. Our proprietary computer vision technology uncovers key contextual information from text and image content on premium publishers all over the world. By unlocking this hidden value, we enable advertisers to deliver highly relevant messages to their most valuable consumers. And with our highly visible, deeply engaging ad units, we make sure every customer enjoys the quality user experience they deserve. Together, the GumGum advertising suite has all the integrated options you need for an effective digital marketing strategy.



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Social Media Spans the Marketing-Public Relations Content Divide


There’s not much question that the proliferation of social media has blurred the lines between public relations and marketing content. With the potential to reach millions of consumers and influencers with a single post, Facebook and other social platforms have become vital tools in the arsenal of both disciplines.

And even though their cross-purposes might lead to some confusion among the public, that doesn’t mean companies shouldn’t take advantage of the opportunity to reach such a wide and accessible audience.

“As marketers, I think we get hung up on message hierarchy, or audience, or channel strategies,” said Jasmine Atherton, social media and content lead at Delta Air Lines. “In the end, the customer doesn’t connect those dots. They just like or don’t like what they see, read or watch.

“To the consumer, your content is about a brand – a news clip talking about the brand, a bus shelter advertisement they see on the way to work every day, a tweet from the brand. Each is essentially one of the many touchpoints a consumer has with your brand.”

The key is to ensure your company’s marketing and PR content work together to promote your message, said Cindy Miller, CEO of the Atlanta public relations company Cindy Miller Communications.

“It’s still two different sets of expertise, and tactics can vary widely,” Miller said. “But no doubt they have to be in sync.

“Take Papa John’s, for example,” she noted. “They clearly have a public relations problem right now, but marketing and PR have to work together to get back on track. Tesla, too. Marketing the car is easy, but Elon Musk is a PR challenge.”

When the two areas work together, the power of a company’s content can be magnified through social media.

“We still use a lot of the traditional content channels, but social media holds it all up right now,” Miller said. “Getting your client’s story on the No. 1 news station in your market is still valuable – but even more so now, because it can live many lives through social media.

“Whatever attention you get from your content on other channels, you can amplify it greatly on social media,” she explained.

With more than two billion users on Facebook – more than one billion of them active on any given day – it’s no surprise that many marketers view that platform as their best opportunity to share content. Brands that have Facebook pages post an average of eight times per day, according to a report published by the website Sprout Social, and more than 90 percent of marketers use Facebook advertising regularly.

“You have to fish where the fish are,” Miller said. “Just the sheer numbers make it important. Where there are billions of people, you have to be there.”

Marketing and public relations departments must be careful, however, not to rely solely on the organic reach of Facebook and other platforms, said Brooke Wilson, a senior vice president at Moxie who has worked in both public relations and marketing.

“There’s a question of how much value there is now unless it’s paid,” she said. “Even if you have a Facebook page with thousands of followers, only approximately 2% of them will actually see your post in their feed, because the algorithm doesn’t serve it up – unless you put paid spend behind it. If you don’t ‘boost’ or target a post, it won’t be seen.

“Twitter still has organic exposure, but the problem there is, it moves so fast that not many people have a chance to see it.”

Still, the reach of social media is impossible to ignore. More than 60 million companies now have Facebook business pages, a Brandwatch report said.

“Social media has become an effective vehicle for brand awareness,” said Holly Clifford Corral, president of the Press Marketing agency in Tampa, Fla. “Someone can read a raving PR article on Facebook, resonate with the brand and become a loyal consumer.  A clever marketing campaign can gain PR traction on social, as we’ve seen countless times with brands like Apple, Dove or Airbnb. Consumers become brand ambassadors by sharing content from their favorite brands every day on their social channels.”

Social media also provides the opportunity for marketing departments to “repurpose” content that originated in the public relations department.

“Social media can be used to amplify content that PR produced,” Wilson said. “You can re-share the media content and boost it – earned can actually become paid, which can be very effective in influencing your audience.”

How marketing works with public relations – and understanding the different roles of the two departments – is key, said Mark Braykovich, executive vice president at The Wilbert Group, an Atlanta public relations agency.

“It’s important to remember they are different functions that can complement each other,” he said. “Many companies have PR departments reporting up to Marketing, and I don’t necessarily view that as unhealthy or unworkable. But marketers need to remember that PR has a different mode of operation and what makes for successful marketing (such as a great ad, a brochure, creative website language) doesn’t work on the PR side.”

Professionals from both disciplines stress that difference, and how it influences everything from content strategy to staffing.

“I view marketing as the activity of identifying, conceptualizing and developing a product or service, figuring out how to price it, choosing the best distribution channels, and promoting the hell out of it,” Braykovich said. “PR is generally focused on promoting and protecting brands through (mostly) unpaid placements in traditional and social media.”

Figuring out how the functions work together is important, Clifford Corral said: “Traditionally, marketing and public relations were very church and state. Now, the two are working more closely in tandem than ever before.

“It is essential for companies to understand the distinction between the two yet understand how they function together. Companies should develop both departments and not assume one can cover the other since they really are different specialties.”

Figuring out this dynamic – and how it’s impacted by the use of social media – is changing the way companies develop strategies for delivering content to their target audience.

“Social media content is not only becoming more and more valuable, it’s become the starting point for brands, especially new ones,” Atherton said. “New companies aren’t spending money on content for traditional channels. Revenue and sales are being driven by social – through their content, through influencers talking about their content, or through interesting press coverage.”

New companies, along with smaller, established businesses, use social media to “play up” against bigger competition. Seventy-one percent of small businesses planned to use social media content to attract new customers in 2018, according to a report by Infusionsoft.

“Social media is the content monster,” Miller said. “It levels the field – small companies can compete with big businesses.”

But with that level field comes vulnerability. Reactions appear quickly on social media, and they are not always complimentary. Ninety-six percent of people who talk about brands on social media aren’t following those brands, according to a report by Brandwatch, so they are not necessarily loyal customers.

“Information – good and bad – spreads rapidly,” Miller said. “Everyone has a microphone – lovers and haters. You’re very vulnerable on social media.”

Because of this, social listening becomes a vital function for both marketing and public relations departments.

“It’s important to monitor a social media, and responding to people often is a shared function,” Wilson said. “Someone must direct activity to the proper channel – some posts might go to customer service, some might go to marketing, some might go to PR for crisis control, anytime there is a negative or viral conversation about the brand.

“It can get muddy out there, and someone – or a tool – must get conversations routed to the right department. It’s important to have an overall strategy for who owns what, and with clear roles and purposes for each channel.”

And even when the response is positive, it’s important that a company engage with its followers, Miller said.

“You have to communicate to establish good public relations,” she said. “Inactivity communicates the wrong message. If a company page has thousands of likes and you aren’t regularly posting relevant content, that’s a mistake. It’s a missed opportunity.”

While Facebook gets the most attention, companies must take care not to ignore other platforms. LinkedIn, for example, does not have the same reach as Facebook but still plays an important role in a company’s online content strategy.

“We encourage clients to focus on the individual profiles of executives and influencers rather than a company page,” Wilson said. “If they can gain followers and become known as thought leaders, that’s a great opportunity for a company to reach people.”

The key, Miller said, is to be sure a client or prospect finds you when they go looking. “This is your social media business card,” she said. “When people think about doing business with you, they look for your LinkedIn profile, whether you’re an individual or a company. You don’t have to have conversations on LinkedIn, but you must be there.”

There are other shared content spaces to consider, and companies should be aware of all relevant channels where people engage and share their thoughts.

“Amazon could be considered a social channel because people post reviews and comments there,” Wilson said. “There’s a lot of content on Reddit, but if you don’t know how to appropriately communicate there, it can be dangerous. Depending on the company’s strategy and brand, we often recommend that our clients monitor but not engage.”



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Monday, October 29, 2018

The Insurance Industry of Tomorrow: InsureTech 2018 key takeaways

Tara Clemens Tara Clemens is a Senior Research Analyst at Mintel. Tara specializes in insurance, publishing data-driven syndicated and custom reporting based in Mintel's consumer data, trends and competitive intelligence.
October 16th, 2018October 16th, 2018

The Mintel Insurance team recently embarked on a journey into the future. The third annual InsureTech Connect Conference gave sponsors and attendees a rare and holistic view into what the insurance industry of tomorrow could look like. From new product launches and lessons in behavioral economics, to innovation workshops and a Salt-N-Pepa performance, the 2018 InsureTech Connect Conference had something for everyone.

One way to sum up the conference is a recurring question that was asked during many sessions: “What does the insurance industry of the future look like?”

Insurance will be real-time

The much anticipated session with homeowners insurtech Hippo and telecom giant Comcast provided a thought provoking glimpse into the inner workings of a major partnership that took the industry by surprise. When news of Hippo and Comcast’s partnership was revealed in May 2018, thoughts ranged from, “What an opportunity for an insurance startup looking to gain traction!” to “Why did Comcast choose an insurance startup when they seemingly have the pick of the incumbent crop?”

Comcast’s Senior Director David Wechsler answered the question, “Why Hippo?” by explaining that Hippo’s vision for the future of insurance aligned with their outlook ‘to a T.’ Wechsler believes that the internet of things (IoT) products will provide the opportunity to price risk on the fly, insurance will be real-time (for example, smart tech will know exactly who is home at a certain time and adjust risk accordingly), and prevention will be at the forefront. Wechsler believes all of this will happen in the next ten years.

Insurance will be personalized

The IoT has long been opening new doors for custom and, more accurately, priced risk. State Auto Labs Director, Haley Smith said her company’s product gives consumers the ability to rerate every six months. State Auto Labs is also exploring ways to better service each individual’s claims experience by asking themselves questions like, “Could we send an Uber immediately when a crash happens? Will someone be sent to help the customer tow their car?” Smith states that the differentiator in the auto space will favor those willing to take risks in partnerships to fill these needs.

Insurance will be “API-fied”

Application programming interface (APIs) are reshaping insurance by allowing disparate systems to quickly communicate with each other in order to pass data and complete complicated tasks to help achieve results on behalf of consumers. According to a session that explored the “API-fication of Insurance,” the rise of API’s will be one of the most profound changes to take place in the insurance industry. The session also pointed out the importance of the API mindset becoming the key to distribution as products become embedded experiences.

Insurance will be easy

Kicking off the first full day of sessions, Credit Karma founder and chief executive Kenneth Lin announced the launch of its auto insurance comparison app stating, “We estimate Americans are overspending on auto insurance by nearly $21 billion a year, and believe that bringing simplicity and transparency to our members will help them save.” With the app, members will be educated through interactive experiences of auto insurance features by displaying how something like moving violations and credit scores can impact insurance rates.

It was the general consensus that carriers and insurtechs were no longer the direct threat to each other that many assume. Insurtechs provide ample opportunity for collaboration that ultimately improves every aspect of the insurance value chain. The most dynamic insurers are actively forming ecosystems to encourage insurtech and other partner engagement.

“It’s not going to be a choice,” Dan Glaser, CEO and President of Marsh & McLennan Cos. Inc. said. “The future is digital.”



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Money20/20 Day One: Globalization

Mark Miller Mark Miller is Associate Director of Insights for Payments with Mintel Comperemedia. He focuses on credit cards, lending products, and the general financial services landscape.
October 23rd, 2018October 23rd, 2018

Globalization – an exploration of how banks across the globe are developing and utilizing new technology to expand their reach, service their customers and improve transactions across borders was one of themes at Money20/20 on day one.

The morning kicked off with a “fireside chat” with some of APAC’s key FinTech players. Eagle Yi of WeChat Pay emphasized the multitude of tasks that its one billion users can complete within the app – reading the news, interacting with colleagues, making payments, online shopping, etc. Twenty thousand US stores now accept WeChat, providing a familiar payment option for tourists. Also expanding into US retailers is AliPay, with over 175,000 US merchants signed up, while their core focus is on Chinese users and an ambitious goal to grow their base to two billion by 2026. Their mission is to provide access globally for the underserved in developing countries and also promoting AliPay as a “financially inclusive lifestyle app.” Ant Financial (parent company of Alipay) CCO classified the company as a “TechFin” rather than a FinTech, putting it in a category of established technology companies that are expanding into financial services.

Origami Pay also has grand initiatives, including helping Japan become a cashless society. The government’s goal is to become 40% cashless by 2025, and eventually reach 80%, a bold vision for a traditionally cash-centric culture. Like its Chinese counterparts, Origami Pay uses QR codes to transact payments, and offers promotions and discounts to drive adoption. While once the de-facto standard, Arthur Zhu of China’s merchant-based LianLian Pay argued that QR codes are not a key driver, rather it was a necessity of technology needing to access a mobile wallet. Zhu predicts that QR codes will not see widespread adoption in more established financial ecosystems like the US.

The protection and privilege of identity

Other major topics revolved around digital identity, biometrics, and blockchain technology. When discussing authentication, creating a balance between security and convenience is key. When asked what was more important when conducting payment transactions, only 48% of the Money20/20 audience chose security. When the question was altered to ask about banking transactions, the figure rose to 72%. Todd Mozer, CEO of biometric firm Sensory, added that privacy needed to be added to the mix.

Allen Ganz of NEC described scenarios where users would have full control over their biometric data, choosing when and for how long to release it. Nevertheless, biometrics does seem to be the future of authentication, with Allen predicting that behavioral analysis will advance and “facial recognition will be ubiquitous.”

Shyft CEO, Bruce Silcoff, continued the identity conversation by asking, “Is blockchain the future of digital identity?” Silcoff stated that with all of the data breaches occurring daily, it is not a question of whether one’s identity has been compromised, but rather if anyone has done anything with the information. Shyft wants to use blockchain technology to reduce the amount of locations where personal data is stored while maintaining global standards, creating a “centralized, de-centralized solution.” Civic CEO, Vinny Lingham also wants to eliminate the possibility of hackers accessing large piles of PII. He claimed that “getting rid of usernames and passwords is the first step.” In their place, Civic would run in the background, providing seamless authentication through blockchain technology. “If we have to talk about blockchain to the consumer then we’ve lost.”

Ultimately, the discussion shifted from narrow usage within financial services to a more humanitarian vision of securing identification globally. Silcoff pointed out that 1.1 billion people do not have a legal ID and miss out on numerous benefits, essentially making identification a privilege rather than a right. In the end, both Silcoff and Lingham agreed that if blockchain technology catches on, the biggest winner needs to be the individual.

Artificial Intelligence: From command technology to anticipating consumer needs

Concluding the day was Sofia Altuna of Google, Ken Dodelin of Capital One, Peggy Mangot of Wells Fargo and David Sosna of Peronetics participating in a fascinating discussion of artificial intelligence (AI). Sofia spoke of the success of Google Assistant, how conversation drives consumer engagement and Google’s current focus on multilingual recognition and moving beyond voice to create a multimodal digital interaction. Dodelin focused on Capital One’s virtual assistant Eno and the need to make sure that when designing AI, machines are made to act like humans, not the other way around. In his example, instead of limiting customers to two or three responses within an automated system, Eno can recognize normal conversation and emojis. In fact, more than 60% of customers choose an emoji to confirm payments in app, as opposed to text.

Mangot took things a step further, stressing the need for AI to truly serve the needs of the customer. She argued that the tide was shifting from Personal Financial Management (PFM) tools, which simply show payments and budgeting options to a Personal Financial Coach (PFC). AI needs to deliver a personalized experience, anticipating customer needs and making recommendations in real time to assist on a path to financial health. According to Mangot, all needs can be effectively met by shifting from a product-based model to customer-centric.

What we think

Key takeaways from day one are emphasis on customer wellness and providing user-friendly platforms to meet diverse sets of customer needs, both trends that Mintel Comperemedia is following closely as we look forward to 2019. Users want a seamless banking experience but also expect more security, personalization, and nurturing from the relationship. As financial institutions shift their focus towards inclusion, wellness, and the broadening of product offerings, trust may be restored.

Stay tuned for day two highlights!



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Hotspots: October 2018’s Top Trends Observations

For the latest in consumer and industry news, top trends and market perspectives, stay tuned to Mintel News featuring commentary from Mintel's team of global category analysts.
October 24th, 2018October 24th, 2018

Hotspots brings you the Mintel Trends team’s top observations on product and service launches from around the world. From restaurants turned into co-working spaces to an author co-writing a story with her readers’ input, find out the most innovative global initiatives happening this month.

Libro Vivo – Argentina

Publishing company Planeta and Google are teaming up for a project that will see author Viviana Rivero use Google Docs to write live a spinoff of her upcoming novel. During five days, people will be able to access the Google doc and write comments about how they would like the story to continue. The project aims to reveal how the creative process of a writer works, while showing how digital and print can live together and complement each other.

Livestreaming has given consumers the chance to interact and have a say in the making of a product. Iconic Australian milk brand OAK is allowing consumers to choose its next flavour through a real-time vote on Facebook Live, while Coca-Cola Argentina has challenged an influential cook to create a dish in real time using ingredients suggested by livestream followers. In an increasingly visual world driven by fierce curiosity and fear of missing out, livestreaming seems to have a bright future as it allows people to join in without paying up.

Graciana Méndez – Trends Analyst, Latin America

Jail Review – Italy

An Italian business owner has been given a nine-month jail sentence for posting fake reviews for cash on TripAdvisor. Alongside jail time, he must pay thousands of pounds in costs and damages to Italian hospitality businesses. This is one of the first times a crime of this nature has resulted in a jail sentence.

TripAdvisor has received widespread criticism from UK pub operators for not doing more to stop users posting fake reviews. This is a step to show it is taking this issue more seriously. Information about a brand posted online is extremely important and can have huge effects on people’s behaviour and opinions. The jail sentence awarded in the TripAdvisor case should make people think twice about sharing fake information, but there is room for more tools to identify false content to protect brands and consumers.

Helen Fricker – Trends Manager, EMEA

Work Where You Eat – US

Start-up Spacious turns dinner-only restaurants into co-working spaces that can be used by members until the restaurant has to prepare for dinner. Each location has a Spacious employee that ensures workers obey the rules and have access to what they need. Equipped with pumped-up Wi-Fi, power strips and a coffee bar, Spacious locations cater to individuals rather than companies. With 15 locations in New York City, Spacious has now expanded to San Francisco, and is aiming to occupy the in-between space of a coffee shop and WeWork.

With more flexible careers, people are exploring the options for what their ‘office’ may look like. If they’re going to spend money on coffee to work in a coffee shop, why not put that money toward a monthly membership in a co-working space with free coffee? Meanwhile, restaurant owners get additional revenue and an opportunity to maximise their unused space.

Credit: Spacious.com

Alex Milinazzo, Trends Analyst, North America

Smile for Rewards – China

Coca-Cola China has launched VenCycling machines – vending machines that use facial recognition technology to identify and reward consumers who recycle. In exchange for returning used cans or plastic bottles into the machine, consumers receive credits on their mobile for beverages or products made from recycled plastics.

China had been importing plastic waste for the last 28 years, before announcing in November 2017 that it would stop taking in contaminated plastics. This is a strong indication of the government’s commitment to reduce plastic pollution. For instance, Shanghai is piloting IoT-connected recycling containers that use facial recognition technology to reward users for separating their rubbish. While this is a good start, it’s essential that both governments and businesses continue to develop the technology, create awareness and eventually evoke an intrinsic desire in consumers to reduce, reuse and recycle.

Credit: Coca-Cola

Joyce Lam – Trends Analyst, Asia Pacific

Gin Safari – UK

Tally Ho has launched a Cycling Gin Safari tour to explore London’s best gin spots on vintage bicycles. The tour starts in Lambeth in a boutique gin distillery where cyclists can learn about gin craft and artistry, and continues along industrial wharves, quiet streets and cycle lanes. Customers also get to visit food markets and try their hand at graffiti.

The success of the gin safari relies on the combination of drinking gin with cycling and learning about history and architecture. It elevates the value of a glass of gin by building an experience around it. Another attractive aspect is the revival of a past culture. There is a growing feeling of nostalgia from older generations, and a desire for vintage items from younger generations. Indeed, we have seen other categories bringing back icons, like the Sega console from the 90s, printed photo services and vinyl record players.

Julie Gable – Trends Analyst, EMEA

Plastic Road

Plastic-mixed asphalt roads are being tested in Indonesia to reduce plastic waste. 1km of road uses 2.5-5 tonnes of high-density polyethylene (HDPE) recovered from plastic bags. PT Chandra Asri Petrochemical Tbk has worked on the project in collaboration with the Ministry of Public Work and Public Housing (PUPR).

Indonesia is the second biggest contributor to plastic waste in the world, contributing around 200,000 tonnes of plastic waste a year. The government is committed to reducing plastic waste by up to 70% by 2025 and is drafting regulations to manage plastic waste at sea. In the interim, Indonesia’s two biggest Muslim organisations – Nahdlatul Ulama (NU) and Muhammadiyah – with a total of 100 million followers, said they will be preaching to their followers to reuse bags and reduce plastic waste, according to The Guardian.

Delon Wang – Manager of Trends, APAC



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