In 2016 we have witnessed many new developments and technologies in digital world in both product and advertising terms. PokemonGo, Snapchat, Livestream, Virtual Reality, Data driven and Outstream video advertising rank as the top in 2016 digital world agenda. We, as Genart Medya, wanted to gather all the emerging trends in 2016 and mention the highly probable agendas in 2017. Hope you find it useful and enjoy reading!
4 MAIN TOPICS
The Rise of Video and Video Ads
Cisco’s VP for Marketing and Emerging Technologies, David Hsieh, in 2012 mentioned that at that time over half of all Internet traffic is video—51 percent and he forecasted that based on the current trends, in the next three years over 80 percent of all Internet traffic will be video. YouTube’s head of global partnerships, Robert Kyncl also confirmed this forecast and predicted that soon 80 percent of all Internet traffic is going to be video.
Another outstanding related to video use and consumption is the increase in the portion of video advertising in the overall marketing budget.
– Original digital video content now accounts for 44% of budget, up from 38% two years ago.
– Advertisers and media buyers have increased their investments in original digital video programming by 114% over the past two years.
– In 2020, video will account for 23.2% of marketing spend, compared with 17.7% in 2015.
In this changing ecosystem, the merge of new ad models and technologies was inevitable. With the rise in video consumption, video ad use of brands and changing consumer behavior (ad blocking, ad viewability time, etc…) short form videos, livestream videos and outstream videos has emerged and started gaining popularity among marketers.
Live streaming is now available in almost all social media platforms; Twitter, Facebook, Periscope, Instagram and Snapchat allowing people to share their moments with others. The biggest reason about the popularity of live streaming is that people want to become part of stories as they happen.
Twitter partnered with NFL, NBA, BuzzFeed and Cheddar TV to live stream the games, news and events. Even the USA Elections live streamed from BuzzFeed Twitter account.
Twitter also now allows everyone to live stream within Twitter application without using and downloading Periscope. In the last month, Periscope enabled users to produce more quality (not with just their phones) content with Periscope Producer which allows to Periscope with professional cameras, studio editing rigs, satellite trucks, desktop streaming software like OBS, games, VR headsets and drones. According to GWI 2016 Live Streaming report, the most attractive contents people interested to see are funny/entertaining (53%), breaking news (41%), and music/concerts (38%) video contents.
A New Currency: Video Ad Viewability
For digital ads to make an impact, the only metric is not its serve but what matter is the viewability. However, nearly half of all digital ads today are not viewable. All digital ads — desktop, mobile, in-app, browser, display, video — have different ways to measure viewability. And as digital advertising becomes more sophisticated, advertisers want to not only prove ROI, they also want to transact on viewability in order to provide comprehensive data and useful insights.
- According to a survey conducted by Integral Ad Services, 60% of video ads are out of view. The ratio is at peak on desktop devices compared to mobile and tablet.
- 76% of the video ads are never on screen (they are in a background tab or simply not on the screen at all)
- 24% of the video ads are scrolled off-screen or abandoned in fewer than 2 seconds.
What could marketers can learn from this?
- Advertisers seeking viewable impressions should look at high viewability sites that engage in best practices for video viewability.
- Video viewability varies significantly by ad size. In general, advertisers should consider investing their spend in inventory comprised of larger video ad sizes to enhance viewability.
- Page position is crucial to video viewability. Advertisers should understand how both horizontal and vertical positioning can impact viewability for video ads.
- Rather than in stream video ad models, marketers should switch to using out stream video and high impact ad models.
Outstream vs Instream, who will win the battle?
An out-stream unit can run on the corner of the page or even within the content of a written article. It provides new ways to deliver video on high-quality sites, while guaranteeing 100% viewability. Advertisers get additional exposure on sites that deliver premium content without worrying about placement quality with using out stream video ads.
- 90% of the viewers focus on the “skip” button when they are exposed to in stream video ads
- 94% of the viewers close the ad in 5 seconds after “skip button” disappears
Outstream Ad Formats
Why Outstream will win the battle?
- The ads are visible in the area of the screen 25% longer.
- 23% of users were more likely to read content within premium articles than in social feeds,” as Adweek’s Marty Swant reported. Furthermore, “users spent 24% more time watching video ads within premium content on websites than they did watching video ads in social feeds.
- Outstream formats offer 100% viewability for users without being forced or incentivised.
- In-read ad models are 74% more engaging compared to pre-roll and this results in higher CTRs.
According to Global Web Index 2016 Turkey Market Report, Turkish people spend 42% of their online time on social networks/services which is a huge opportunity for the brands reaching their customers via social networks.
The average number of social media accounts people have in Turkey is 10.8, while it is 8.3 globally.
Snapchat vs Instagram. Who is the winner?
In September 2015, Instagram opened up to ads. In 2016, the company is on track to bring in more than $1.85 billion in ad revenues worldwide. Being owned by Facebook makes it easy for advertisers to extend their buys, but ad performance on Instagram is mixed—and Snapchat is stealing some of its thunder.
Though Instagram has more users, Snapchat is gaining, particularly among teens and young adults. According to Jumpshot 2016 research, Snapchat attracts 25% more new users than Instagram worldwide. In addition, there is mounting evidence that suggests Instagram is losing out to its rival when it comes to frequency and intensity of usage.
It’s a known fact that Instagram has been copying many features that were exclusive to Snapchat like Stories, disappearing photos and videos, in-app purchase. But there are both downsides and upsides of each platform. With full screen ad formats, which both platforms have now, the users 78% more likely to want to learn more information about the product/service compared to the standard ad formats.
Snapchat’s global ad revenues are expected to reach $1.760 while Instagram’s is expected to reach $6.837 (Inspite of Snapchat’s expensive ad formats) in 2018 (eMarketer, 2016). One of the reasons for Instagram’s dramatic ad revenue increase might be that it was the first platform on users’ perception and people already has a wide community on Instagram. It announced in June 2016 that it had reached 500 million monthly active users worldwide, with 300 million visiting daily. That milestone was achieved nine months after it reached 400 million monthly actives.
Another reason is the acquisition of Instagram by Facebook. The Instagram ad purchase is executed over the same platform with Facebook and they are so similar. This makes the process easier for marketers. Finally, the Instagram ads, in terms of content, is easier to produce and deliver.
Snapchat only allows to add users with QR Code’s and usernames (if you know them). As a result of that, people slowly build their own communities in Snapchat and therefore the rate of user growth is slow. Snapchat says it has 150 million daily active users worldwide, half as many as Instagram. On Snapchat you can discover your friends’ snaps or contents that you follow but hard to find someone to follow, discover new content.
Social Media Platforms Actively Used by US Internet Users, by Age, May 2016
In addition to that, with switching to Snap Inc. in summer, the company changed its vision from a storytelling platform to a camera reinvention company and then delivered Spectacles, the sun glasses that creates content for Snapchat. Snapchat’s partnering with Shazam also allowed the users to Shazam within Snapchat application and raised the curiosity even more. So, nobody knows what to expect from Snap Inc in 2017, be ready for the surprises.
Let’s see who will win this battle in 2017!
Social Buy Button
According to Global Web Index 2015 report, social media users worldwide who are interested in using buy buttons on social media platforms are as follows; Tumblr 17%, Instagram 14%, Pinterest 13%, Twitter 12%, and Facebook 9%. Currently, social commerce is representing only 2% of global online sales worldwide. According to Paypal 2015 research, 61% of Turkish internet users who are aged between 18-34 are online shoppers and 71% of this group is mobile shoppers. In addition to that, 58% of Turkish internet users are aged between 18-34 (GWI, 2016).
Purchasing from social platforms are crucial to these people which is now easier with the buy buttons enabled on many social platforms like Google, Facebook, Pinterest, Twitter, and YouTube, but they’re rarely used, likely due to a lack of awareness among online shoppers. According to eMarketer 2016 Digital Commerce Survey, 26% of US internet users never even heard of shopping via social media sites and 18,7% of them open to social media shopping. However, this will change in 2017, as more platforms have been testing out the buttons and trying to get shoppers to become more familiar with them. Since, all social platforms are racing over buy buttons like everything else, according to 2015 UBS Evidence Lab research, 24% of Twitter users used buy buttons on Twitter and 16% of Facebook users used buy buttons on Facebook in US. Snapchat allows people purchase without leaving the app through its Discover platform. Target and Lancome was one of the first brands using this feature with their 10 seconds ads appearing in Discover. Google also recommends products with buy buttons to people typing products to search tab. With one of Instagram’s latest update, stories could potentially provide consumer to shop online with using a neat ‘Swipe up’ action.
On December 1st of 2016, the app called Geenee launched its beta version that allows people to take a screenshot of pictures on Instagram and then with the image recognition technology, the app identify where you can buy the item. In 2017, it’s obvious that, the ratios given will be increase but we’ll have to wait till 2018 in order to see the winner of the battle.
By now, we’re all aware that the campaign-centric model of marketing is over—at least, if you want to be a company that remains viable and visible in the minds of consumers. Instead, most of us are using data to inform our campaigns and listening to our consumers on a regular basis. Or at least we should be!
The prevalent idea about branding is that a “company” is a functional thing—offering products and/or services—but a brand is an added layer of personality or tone: something intangible that creates an emotional connection with the consumer.
The needs of consumers are infinite. It’s a marketer’s job to understand those needs, respond, and act. Listening allows companies big and small to personalise their responses and relationships to customers by meeting them where they are and anticipating their needs. They can surprise and delight customers, and they create value through extraordinary company-to-consumer experiences, not through branding. In 2015 and 2016, we have seen very successful campaigns, Dove #SpeakBeautiful has won Media Silver Lion at Cannes Lions.
For the past 10 years, Dove has been committed to making beauty a source of confidence, not anxiety–but over the course of those years, the beauty landscape has changed drastically.
In 2014 alone, women posted 5 million negative Tweets about beauty and body image. Women are two times as likely to say something negative about themselves on Twitter as they are to say something positive about themselves on Twitter.
1 Tweet—that's all it takes to start a positive trend.
— Dove (@Dove) December 8, 2015
@msheyheyy Replace one negative thought with two positive ones. It takes practice, but positive thinking is a habit you can create.
— Dove (@Dove) February 23, 2015
In 2015, Dove and Twitter set out on a mission to transform that reality, inspire behavioural change, and ignite a cultural shift in the beauty conversation on social media by encouraging women everywhere to #SpeakBeautiful.
The results exceeded expectations — most importantly, we stimulated a behavioural change on a mass scale through #SpeakBeautiful.
– In 2014, there were over 5.3 million negative Tweets about beauty or body image sent by women. In 2015, that number dropped to 3.4 million – a 36.8% decrease year over year.
– From Oscars 2014 to 2015, women posted 30% fewer negative Tweets and 69% more positive Tweets about themselves. Similarly, beauty conversation around the VMAs was 76% positive, up 14 points from 2014. #SpeakBeautiful also swept Twitter as a U.S. trending topic during both nights.
Throughout the course of the year, women were inspired by our message, using #SpeakBeautiful more than 168,000 times and driving 800 million social media impressions of the campaign.
You know that feeling when you’re so hungry you get really, irrationally angry? Yeah, same. But imagine if the angrier you got, the cheaper your favourite chocolate bar was. That’s exactly what Snickers have set out to do in their latest campaign: Hungerithm. Using a specially devised anger-gauging algorithm – cleverly coined the Hungerithm – Snickers scans the internet every 10 minutes to determine how angry (and therefor, how hungry) the internet is. The hungrier the internet is; the cheaper Snickers are at your friendly neighborhood 7eleven.
The angrier people get, the cheaper Snickers get, with prices updating over 140 times a day and dropping to as low as 82% off the normal shelf price. For example, if Donald Trump receives Republican Party endorsement, the price of a Snickers could plummet to 50 cents.
The Unavoidable Rise of Mobile
We used to be saying that mobile is the second screen but it’s time to change that! The shift has already begun and now mobile screens are the primary screens. According to GWI 2016 Turkey Insight report 47% of the internet users use mobile as primary choice to access internet. It’s followed by laptop, desktop and 4% of users use tablets. Research conducted by Kantar Media shows that 93,8% of Turkish internet users owns a mobile device.
– According to ComScore data the tipping point between desktop screens and mobile screens already arrived during 2015: currently 54% of time spent viewing digital media is now spent looking at mobile screen
– Nielsen shows that mobile viewing is cutting into TV time: the audience for TV viewing among 18-34 years old fell 10% while viewing from a smartphone/tablet grew 26% (Associated Press)
Messaging Apps are now bigger than social media
eMarketer forecasts that by 2019, 25.2% of world’s population will be using messaging apps.
In a public Q&A session November 2014, Mark Zuckerberg also explained: “Messaging is one of the few things that people do more than social networking.” And since 2014, Facebook have made huge strides in the messaging space, acquiring Whatsapp for $19bn and building Messenger up to 900 million users worldwide.
– Over 2.5 billion people have at least one messaging app installed. Within a couple of years, that will reach 3.6 billion, about half of humanity.
Many teenagers now spend more time on smartphones sending instant messages than perusing social networks. WhatsApp users average nearly 200 minutes each week using the service.
How Marketers can use this? Answer : Chatbots
The transition from public social media to chat apps could be the biggest change in internet culture and marketing since social media itself.
– One brand who have started to experiment with dark social, and marketing through messaging apps is Adidas, who are using WhatsApp to build hyper-local communities in cities across the world and have previously used Twitter’s DM feature to invite a group of advocates to a private conversation with one of its sponsored players.
– Comedy website Funny or Die have also been utilising Kik to distribute content since early 2015 and have seen some great results:
“Chat apps will come to be thought of as the new browsers; bots will be the new websites. This is the beginning of a new Internet.”– Ted Livingston, founder of Kik.
What are bots?
Essentially bots are a way to simulate conversations human users. You can interact with bots for entertainment or to get things done. Unlike apps, bots don’t need to be downloaded, they live on servers, not a user’s device. This means using bots should provide a smoother experience for the user as switching between bots doesn’t involve tapping on another app.
Chatbots are overtaking the Customer Services
– Dominos’s “order with a pizza emoji” Twitter campaign has awakened and encouraged many brands to use the AI technology. The brands should be using this technology since mobile apps which people do not use frequently, are using a major unnecessary storage on users’ devices and chatbots are the perfect solution for that barrier. The other reason for brands to use chatbots is that Millenials prefer text-based communication services instead of calling the call centers.
– KLM is now giving passengers the option to receive flight updates, and boarding passes through Messenger.
Twitter has introduced new chatbot services through its DM channel, which aims better customer service experience to both brands and consumers. The Economist, an UK based magazine brand, started to use Twitter chatbot, welcomes the users and asks them to choose a topic and frequency to receive the contents. If the user choses daily, the magazine shares daily news content relevant to user’s interests through DM.
The United Airline’s chatbot service through Twitter DM shows apparently shows that there are no reason for customers to download the app to see their flight status.
The pros of communication through chatbots on Twitter can be explained with Twitter’s Insiders research, which suggests that
“Customers are 44% more likely to share a positive experience after a positive response on Twitter compared to other platforms and they are more likely to recommend a brand.”
Internet of Things
The Internet of Things (IoT) is the next step in the evolution of wireless networks, Big data, and connected devices, as sensors shrink in size and migrate from our smartphones to other everyday objects. Analysts predict the IoT will double in size to nearly 50 billion things by 2020, comprising a $1.7 trillion market.1 Some of these smart things already monitor the performance of power plants, factories, and jet engines; others collect our vital signs from bracelets and watches. In each of these cases, the IoT is both saving lives and transforming industries and societies.
Smart homes typically evoke visions of The Jetsons’ robot maid or refrigerators ordering milk from Amazon, but they also o er possibilities for energy and cost savings, greater home efficiency through automation, as well as improved home security. Smart homes have the potential to provide for consumers’ growing expectations of convenience, sustainable living, safety, and security.
Mobile Video is undisputable!
The increasing proportion of online video is now being viewed by consumers via mobile. Mobile phones and tablets now account for 46% of all video viewing globally, according to a recent report from premium video specialist Ooyala.
Only half of YouTube’s audience watches on mobile. This is in stark contrast to other platforms serving video content where the respective figures are significantly higher. As a result, content creators – and advertisers – are looking beyond desktop to distribute their video content; naturally adapting with consumer behaviour. The number of videos posted by US brands to Facebook grew by 145% between October 2014 and October 2015 while the number posted to Twitter rose by 225%, according to the same study.
– Today, more than 50% of all video views occur on mobile devices (reelseo)
– Mobile video views having increased by 400% in the last 2 years (Ooyala)
– Smartphones are driving digital video views up 33% year over year (eMarketer)
– By 2020, 75% of Mobile Viewing Will Be Online Video Content (Cisco)
Rapid growth in mobile advertising is being fuelled by better targeting capabilities, more and more innovative video inventory, and a greater focus on optimising video content for mobile consumption – making it enjoyable without sound, for example, and developing video experience innovations such as 360-degree film.In-feed mobile video ads lift recall, purchase intent.
Mobile video is a fast-growing ad format, and many brands are rushing specially to create video ads for native mobile environments like Facebook or Instagram feeds. Research suggests that viewing such ads improves a variety of metrics, from recall to purchase internet.
Is the Mixed Reality the New Reality?
2016 was the year of brands winning an award with any usage of Virtual Reality (VR) in their campaigns and Pokémon’s Augmented Reality (AR). Gfk 2016 research states that, 34% of internet users in Turkey believes that virtual interactions are as good as in-person ones.
According to Campaign Live, two of the best VR usage for marketing was Lowe’s Hologram and Merrell’s TrailScape. Lowe created a room where customers can design their homes with Lowe’s products they choose using VR headsets. Lowe’s usage VR technology is a great example for brands transforming and making user experience (shopping) into effortless, unique experience. Merrell’s selling footwear products like hiking shoes, constructed a hiking area at Sundance Film Festival and provided a different hiking experience for customers. Merrell’s TrailScape transported users to the Dolomites, a mountain range located in Northern Italy, where they must traverse a creaky rope bridge, avoid hazardous rockslides and tiptoe along a narrow ledge.
Besides great works done with AR and VR, we will start to see Mixed Reality (MR) in the coming years. So, what is MR? According to CCS Insights, MR is the integration of virtual objects into real life and (in contrast to AR/VR) interacting with those objects in real life. With the technology of MR in our lives, we will be able to interact with virtual objects with sound or gestures in our real life. Microsoft is the closest one to MR with its Holographic lenses. According to Microsoft, MR is clearing the barriers between the physical and virtual life, so, we will be able to see a friend which is not in the room and interact with her/him in real life. It sounds more like an episode from Black Mirror series but it is possible!
In the past few years, we have seen Apple iWatch, Google Glass, Moto 360, and other similar smart devices that can be both worn and keep you connected with the digital world. Experts predict this trend will develop into companies creating more specific apps to include the individual into their product in 2017.
Analyst firm Gartner predicts that by 2017, 30% of wearable technology will be invisible to the naked eye.
In order for people to use devices, they must be comfortable, visibly appealing and fashionable.
– PET TRACKING
Pet owners can feel relieved about their pets thanks to the smart collars designed to track pets using GPS and measure their activity level, get report on wellness stats.
IDTechEx sees animal wearable technology more than doubling to $2.9 billion in 2027.
– PERSONAL ASSISTANTS
Companies like Amazon, Apple, Facebook, Google, Microsoft and Samsung, as well as a swarm of startups, want to win users’ loyalty and embed themselves further in consumers’ lives so 2017 will be a breakthrough year for virtual personal assistants.
Google has announced Google Assistant technology that understand people’s world and helps to get things done more easily like buy movie tickets while on the go, to find that perfect restaurant for your family to grab a quick bite before the movie starts, and then help you navigate to the theatre.Read More