COMMUNICATION PLANNING IN A DISRUPTED WORLD
CONTENTS 02
EXECUTIVE SUMMARY
03
SECTION 1: SETTING THE SCENE
07
SECTION 2: CONSUMERS VIEWS
21
SECTION 3: LEADERS VIEWS
39
SECTION 4: INSIGHTS FROM INDUSTRY LEADERS
41
APPENDIX – TABLES
57
CONTACT US
EXECUTIVE SUMMARY This report contains the results of a major and innovative study by Kantar Media. Designed in two parts, the intrinsic value of this work lies in the fact it explores many of the key communication planning, buying and measurement issues faced by the industry from the twin perspectives of the industry’s leaders and the consumers they are trying to reach. A top-line summary of our major conclusions: here is (an encouraging) synergy between T how consumers feel about media channels and formats, and the messages they carry, and leaders’ priorities and concerns. ll communication forms, new and established, A remain relevant and have a role to play in the lives of connected adults. C onsumers are increasingly savvy about what constitutes ‘advertising’. Attempting to convince them that a paid-for brand message in whatever form and however transmitted is somehow ‘not advertising’ will fail.
e are entering an era of collaborations and W partnerships, within which open access to major datasets plays a huge role. ross-media and cross-format campaigns are C increasingly the norm (an approach that is noticed by consumers). Such an evolution demands a holistic approach to audience measurement. t a time when ‘big data’ proliferates, the context A in which a message occurs matters (and a significant proportion of consumers do notice it). This issue will only grow in importance. ommunicating commercial messages via mobile C devices has a bright future as an intrinsic part of the world we live in. The close, positive relationship consumers have with their devices should be seen as a wake-up call to the industry to pay as much attention to the ‘how’ and the ‘why’ as to the ‘how many’. We hope that these insights into the thoughts of both the industry’s leaders and the consumers we surveyed will add a valuable new dimension to your own marketing activities.
Overall attitudes towards advertising remain positive or neutral. A minority ‘dislike’ advertising. Online advertising is less popular than advertising in more established vehicles. Reasons include excessive repetition and unsophisticated retargeting. lthough adblocking is at a significant level, its rise A and reported growth is less to do with any intrinsic dislike of ads and more to do with improving the online experience, especially on mobile. espite its relative unpopularity, online advertising D is seen as becoming more personally relevant – a trend that is largely welcomed by consumers and leaders alike. onsumer relevance is driven by data; and ‘data’, in C all its forms, is a key topic for the industry’s leaders. uality, objectivity and independent verification in the Q data we use is far more important than simply having a great deal of it. Leaders feel we’re just scratching the surface of what is possible (particularly in the creative space) given a smart use of data.
2 | DIMENSION – Communication Planning in a Disrupted World
Andy Brown CEO & Chairman, Kantar Media
SECTION 1
SETTING THE SCENE
INTRODUCTION Building upon its extraordinary growth over the last 5 years, both in available channels and in the ways in which these channels can be accessed, the media market continues to innovate and to evolve.
E
stablished media outlets, originally created to reach mass audiences, have been joined by a host of channels designed to target consumers ever more precisely.
With data comes the possibility of targeting messages to the right audience at the right time and in the right place, and of ensuring relevance in terms of the content of the message being received.
Mass reach with precision is no longer a pipe-dream. Instead, it’s very much a reality for those planning communication campaigns.
In this study we consider the impact of these communication innovations on those whom they’re designed to engage – the connected adult consumer.
The introduction of ever more sophisticated digital delivery mechanisms has led to more data than ever before being available on who’s consuming what channels, how, where and when.
At the same time, we consider the views and opinions of a wide range of industry leaders: media sellers, creative, media and PR agencies, advertisers and adtech professionals among them. Our aim is explore the challenges and opportunities faced by these leaders, and to set these alongside the views of those consumers they are trying to reach and influence.
4 | DIMENSION – Communication Planning in a Disrupted World
What we did
The ‘connected adult’ interviews were conducted by Lightspeed on behalf of Kantar Media, and took place between 19th October 2016 and 14th December 2016. All interviews used the CAWI (computer aided web interviewing) technique.
The study contains two main strands.
1
The consumer survey
We interviewed 5,213 ‘connected adults’ (aged over 18 years old) across five of the world’s largest advertising markets: Brazil (1,097 interviews), China (1,067), France (1,000), the UK (1,035) and the US (1,014). ‘Connected adults’ are defined as those who have access to the internet via both a PC/laptop (at home or work) and a personally owned mobile device (be that a smartphone or a tablet). We limited sampling to this group as it comprises an audience of great relevance and interest to many advertisers. The data is not comparable with that from any broader sample designed to be representative of the population of any market as a whole. 39% of this sample are aged 18-34; 55% say they live in an urban setting (Tables 1 and 2. Note: all tables can be found in the Appendix).
US
The questionnaire, designed by Kantar Media, contained questions on ownership of connected devices, frequency of media use (across all types and forms of media outlet), awareness of and attitudes towards different types and forms of commercial communication, and these consumers’ thoughts on advertisers’ different approaches to reaching them. Age and gender weights within each market were applied to the data to bring the core demographics into line with established (far larger) local TGI studies (Kantar Media TGI studies comprise in-depth consumer behaviour and characteristics built on data from many thousands of representative respondents in each market where the studies are undertaken). We sense-checked data collected on device ownership against local TGI (where possible) and found a close fit between the two data-sets. Throughout we refer to data and tables, all of which are contained in full in the Appendix at the end of this document.
UK
1,014
1,035
FRANCE 1,000
CONSUMER SAMPLE
CHINA 1,067
BRAZIL 1,097
5,213 connected adults 39%
aged 18-34
55% live in an urban setting
Setting the Scene | 5
External sources
The leader interviews
2
The second strand within this project consisted of depth interviews with 40 industry leaders based in Brazil (12), France (9), the UK (12) and the US (7).
We have had access to various related studies conducted by colleagues within Kantar to complement this original work.
Many have global or regional roles encompassing a larger geography than their base.
Specifically, we have quoted from Kantar TNS’ Connected Life work, Kantar Millward Brown’s AdReaction study and Kantar IBOPE Media’s desk-research work on brands’ multi-media use in Brazil.
14 came from agencies (creative, media or PR), 10 from advertisers, 9 from media owners, 7 from adtech organisations and trade bodies. Wherever practical, each was interviewed face-toface by a specialist qualitative interviewer. In a very limited number of cases the interview took place over the telephone. In every case a centrally created discussion guide was used; a summary of the topic areas was sent to respondents in advance.
Following up Inevitably this report can only contain a fraction of the findings from this study. If you have requests for more specific data please get in touch with any of the contacts featured at the back of this report.
All interviews were recorded and transcribed and (where a non-English language was involved) summaries of the transcripts were provided in English.
UK US
12
7
FRANCE BRAZIL
12
LEADER SAMPLE
14 agencies 10
advertisers
9
media owners
7
adtech organisations /trade bodies
6 | DIMENSION – Communication Planning in a Disrupted World
9
SECTION 2
CONSUMERS VIEWS
INTRODUCTION It is tempting to sit in a bubble within our industry, surrounded by the latest communications technology, informed by expert speakers at conferences and convince ourselves that what we do, and how we consume media, is representative of the wider world.
US
UK
1,014
1,035
FRANCE 1,000
CONSUMER SAMPLE
CHINA 1,067
BRAZIL 1,097
5,213 connected adults 18+
years old
5 major ad markets
I
n fact, when considering the many issues our industry regularly debates, we rarely take the views of consumers into account. Nor do we consider how their views can be used to better inform approaches to communications planning. The consumer element of this study set out to discover how connected adults behave in their consumption of and attitudes towards the multiplicity of communication channels available to them. How often do they use them? Are they deserting the more established media forms for the newer technology? And what do they think about the advertising they’re exposed to on these channels? Are they aware of the many techniques advertisers use to reach and influence them?
8 | DIMENSION – Communication Planning in a Disrupted World
Do they dislike advertising sufficiently to turn to adblockers? Or do they find some of it relevant and even entertaining? We conclude that advertisers may be getting better at reaching people, but the content of the messaging needs to be improved. We believe that some of what we found is surprising, and all of it is enlightening. We think you will too.
1
2 IT’S ALL ‘ADVERTISING’ Most consumers are aware that controlled brand messages can be communicated in multiple ways beyond straight-forward spot advertising.
ONLINE AND MORE ESTABLISHED MEDIA FORMS CO-EXIST in the world of the connected adult. 4
3
5
68%
of connected adults either like or tolerate advertising.
6 Consumers feel that advertisers are doing a better job of reaching them, but that online advertising suffers from...
A higher percentage of connected adults feel more positive about...
ADVERTISING WITHIN ESTABLISHED MEDIA FORMATS THAN WITHIN THEIR ONLINE EQUIVALENTS.
36%
feel that advertising is changing for the better.
10
AN EXCESS A BLUNT USE OF OF FREQUENCY RETARGETING TECHNIQUES
7
KEY CONSUMER INSIGHTS
8 Consumers are aware that brands run multi-media campaigns and a significant proportion recognise the fact that often advertising is placed in a way that TAKES ACCOUNT OF CONTEXT.
Relevance achieved by smart targeting is recognised positively.
9
20% of connected adults claim that they always use an ADBLOCKER.
10
Amongst those with adblockers, 47% claim to like or tolerate advertising, suggesting that their concern is with aspects of online advertising as opposed to with advertising as a whole.
Consumers Views | 9
HOW CONNECTED ARE CONNECTED ADULTS? By definition, our respondents have access to the internet via a variety of devices. Smartphones are owned by virtually everybody, laptops, desktops and tablets by large numbers. 76% have access to three or more connected devices (Tables 3 and 4).
We refer throughout to ‘heavy’, ‘medium’, and ‘light’ users of online media forms. These groups are defined by the frequency with which respondents claim to access online media forms (as opposed to going online for any other reason). eavy: users access online media several times H a day. (15% of respondents.) edium: are those accessing more than several M times a week, up to and including once a day. (35% of respondents.) ight: are those able to access online media but L do so once a week or less. (50% of respondents.) Table 6 shows the online media forms included in these descriptors.
CONNECTED ADULTS – DEVICE ACCESS
69% DESKTOP
82% LAPTOP
65% TABLET
44% SMART TV 93% SMARTPHONE
Base: 5,213 connected adults. Source: Kantar Media, DIMENSION study, Oct – Dec 2016. Question: Which the following devices do you own? See Table 3 for full analysis.
10 | DIMENSION – Communication Planning in a Disrupted World
WHAT MEDIA FORMS DO THEY ACCESS? There is no question that online media forms play an ever-more significant role in our lives, indeed almost half of this sample access online media forms at least once a day (Table 5). But that’s only part of the story; as they are also reading, viewing and listening to media via their established formats.
For a medium pronounced dead so many times, TV is very much alive and kicking. 97% of our sample reported that they watch TV on a TV set, mirroring the dominance of the established format that is observed repeatedly in audience measurement studies all over the world.
They also access news and articles online. 93% read articles online, 84% on mobile devices – an indication of the ubiquity of smartphones and of their growing importance to advertisers. Online has no monopoly when it comes to how our respondents choose to consume media.
This is not to suggest that our sample never view TV on any other device. 73% of them say they view TV online and 70% of them do so via a mobile device, but they also still access the medium through the TV set. It’s an ‘and’ not an ‘or’.
In the media world of the connected adult, online and more established offline forms co-exist (Table 6).
It’s a similar ‘and’ story within print too. Even though circulation and readership numbers confirm that print formats are read a lot less frequently these days, they still attract substantial audiences.
The death of the established media has been much exaggerated
83% say they read news and articles in printed newspapers; 84% read magazines in print.
ONLINE AND MORE ESTABLISHED OFFLINE MEDIA FORMS CO-EXIST HOW TV IS VIEWED
HOW NEWS IS CONSUMED
97 %
73 %
70 %
83 %
93 %
84 %
TV set
Online
Mobile device
Printed newspapers
Online
Mobile device
Media forms ‘ever access’ Base: 5,213 connected adults. Source: Kantar Media, DIMENSION study, Oct – Dec 2016. See Table 6 for full analysis.
Consumers Views | 11
ATTITUDES TO ADVERTISING What counts as ‘Advertising’? The rise of the savvy consumer… We asked consumers “Which of the following do you consider to be ‘advertising’.” Alongside traditional formats (ads, e.g. on TV, radio, on social media sites, on other websites), we included all manner of commercial messaging – including: M essages from brands in news and articles in print / paper copies M essages from brands in news and articles online
essages from brands M on social media ecommended results R on search engines ponsorship of TV, S radio programmes Whilst it’s interesting to speculate what the 24% of connected adults think ads on TV and other media forms are if not advertising, 6 in 10 said that they considered messages from brands in whatever format to be advertising. The exception is search engine recommendations, with a comparatively low 52% considering such a technique to be advertising. Most consumers are aware that controlled brand messages can
be communicated in multiple ways beyond straightforward spot advertising. The implications of this for advertisers are that consumers these days are ad-savvy – they recognise commercial messages, regardless of the format in which they are presented to them. Even editorially-formatted techniques (like native), are seen for what they are by the majority. All formats can play a role in positioning and building a brand; but advertisers would be advised not to pretend that these advertiser-controlled messages are something they are not. Trying to fool the consumer by passing these ads off as objective in some way is unlikely to succeed.
WHAT COUNTS AS ‘ADVERTISING’ 76%
61%
Messages from brands in printed media forms
62%
Messages from brands in news and articles online
64% 52%
Messages from brands on social media
Recommended results on search engines 67%
9%
Ads on TV, radio, in print, online etc
Sponsorship of TV or radio programmes
None of the above
Base: 5,213 connected adults. Source: Kantar Media, DIMENSION study, Oct – Dec 2016. Question: Which of the following do you consider to be ‘advertising’? See Table 7 for full analysis.
12 | DIMENSION – Communication Planning in a Disrupted World
SPOTLIGHT Away from the world of advertising and brandcontrolled messages (the focus of this survey) we know that consumers themselves use social media forms to discuss and share their views on brands, and on their communications. A good example of the benefits of this ‘earned media’ channel delivers to brands comes from separate analysis done by Kantar Media over the time of the fieldwork for this study. This work involved analysing 3 months’ content over the period September – November 2016. Conversations around the broad topic of ‘advertising’ on social media channels and platforms, including forums, Twitter and blogs in the US, UK, France and Brazil were analysed. In total, over 4 million conversations were assessed (of which by far the majority were in the US). Obvious brand-generated content, bots, giveaways, recruitment ads and spam were all excluded. The analysis pointed to most ‘advertising conversations’ being concerned with the content of brand campaigns. There was some considerable conversation in the US around political campaigns (this was around the time of the US Election); whereas the bulk of the content analysed in the UK concerned the launch of Christmas TV campaigns, and specifically the annual extravaganza from John Lewis. Further work was done on the specifics of the John Lewis campaign, assessing the extent and value of its coverage in offline media. It was found that the over 2,000 offline articles around the Christmas campaign added some £24 million-worth of coverage to the paid-for advertising effort. Advertising conversations in France were also dominated by mentions of brand TV campaigns (Adidas and Puma). In Brazil there was much social media comment around Spotify starting to carry ads.
Besides Spotify in Brazil, discussion online covered topics such as the ethics of advertising within certain US-based sites (Breitbart in particular) and adblocking. A significant proportion of online discussions around advertising was driven by TV campaigns (25% in the US). Although the time of year and the start of Christmas TV campaigns had an impact on advertising discussions in the UK, TV activity does generate conversations. As the analysts commented: “The average UK consumer does not seem very engaged with most digital advertising”. This is consistent with the finding in Table 12 that one of the media forms where ads are liked or tolerated most is television. Whilst brands may not be able to directly control social messages around a brand, analysing what’s being said can help inform and shape their plans. Furthermore, smart planning can extend a paid-for campaign’s reach and value through the use of earned media. Measuring the contribution that earned media makes over and above paid and owned forms helps ensure that the effectiveness of the total communication programme is properly understood. At the same time, the contribution made by these earned media can be quantified, which in turn can lead to efficiencies in paid-for budgets.
Consumers Views | 13
Two-thirds of respondents either like or tolerate advertising Perhaps surprisingly, given the bad press that advertising often gets, 68% of connected adults either like or tolerate it (Table 11). Heavy online media consumers are more favourable towards advertising than the sample as a whole (77% at least tolerating it). Almost half (47%) of the 20% who claim to always use adblocking software say they either like advertising or aren’t bothered by it one way or the other. The message to take from this is that blockers don’t install blocking software because of an active dislike of all advertising, rather they become annoyed and irritated by certain elements of online advertising – a point we’ll explore further shortly.
Consumers believe that advertising is improving The media world has been through a huge period of change driven very largely by advances in technology. And as the media vehicles and the methods by which they are distributed have changed, so advertisers have evolved how they target and distribute their commercial messaging. Amongst the heavy group, those accessing online media forms most frequently (Table 8), 59% believe that advertising has changed for the better. An important element within this positive change is what consumers feel about how advertisers communicate with them, and how they go about reaching them. Given the sophisticated targeting tools available, we would hope that consumers have noticed some improvement in these areas. In response to a question on how successful advertisers are at reaching consumers these days, 85% of the heavy online media consumers say they think advertisers are doing a better job these days, and 80% claim it’s easier for advertisers to reach them.
LEADERS VOICE
We have the enabling technologies and we know how to use the data better, we have to ensure that we avoid over-targeting and that we never forget the top of the purchase funnel (the bit that builds the brand). Simon Daglish, ITV, UK 14 | DIMENSION – Communication Planning in a Disrupted World
Offline advertising is preferred to advertising online Attitudes to advertising vary by media form (Table 12). It is noticeable that a higher percentage of connected adults feel more positive about advertising within established media formats than within their online equivalents. This is a finding consistent with the annual AdReaction work from our colleagues at Kantar Millward Brown. In their 2017 AdReaction: Engaging Gen X, Y and Z report, they state: “Over the years, one thing has remained consistent across AdReaction studies. People are generally more positive towards traditional advertising, and more sceptical about digital forms of advertising. Digital ads may be a part of everyday life, but they’re not something people welcome as much as print, outdoor, TV and cinema advertising.” In our study, the proportion of connected adults tolerating or generally liking ads within printed newspapers and magazines is at 80%.
The media forms enjoying the highest proportion of the connected adults sample claiming to generally like advertising within them are cinema (37%), TV (33%) and magazines (33%). This trend towards preferring advertising within the more established media forms is also true for heavy online users (Table 13). In other words, amongst heavy users, the proportion claiming to dislike ads within online is higher than is the case with the offline versions of those media. A pattern is emerging from our study that is supported by other work. Consumers are telling us that they prefer advertising offline to online. We think this comes down to a dissatisfaction many feel with the user experience of using some online media, a point covered by some of our leader interviews. The fact that consumers feel differently about the advertising they see on different media speaks to the importance of a consumer-centric approach to planning (a point picked up by a few of our agency leaders in section 3). Placing the consumer at the centre of the planning process, and understanding that his or her views are influenced not just by the content of the message but also by the media form in which the message appears is vital for effective planning.
Within online ‘print’ media forms that figure (whilst still high) reduces to 70%.
ATTITUDES TOWARDS ADVERTISING IN MAIN MEDIA FORMS OFFLINE
ONLINE
75 %
61 %
I like it generally, it can be enjoyable + doesn't bother me one way or the other I dislike it generally + don't know/not applicable Base: 5,213 connected adults. Source: Kantar Media, DIMENSION study, Oct – Dec 2016. Question: What are your feelings towards advertising in general? See Table 12 for full analysis.
Consumers Views | 15
What do consumers think about the ads they see? Advertisers may be doing a better job reaching those they are setting out to target, but what do consumers feel about the advertising messages they see?
WE ASKED RESPONDENTS TO RATE THEIR DEGREE OF AGREEMENT TO
FIVE STATEMENTS ON THE ADVERTISING THEY’VE BEEN EXPOSED TO:
1
2
3 The ads on websites I visit is usually not very relevant to me.
Recently, I have seen an increasing amount of advertising online that is relevant to my interests.
I often see advertising online/ on a website for a product that I have already purchased.
13%
20%
25% 40%
41% 31%
35%
55%
39%
4
5 I prefer to see advertising that is relevant to my interests.
Sometimes I see the same ad over and over again, it’s too repetitive.
9%
10% 21% 27%
64%
71%
Agree + strongly agree Neither agree/disagree Disagree + strongly disagree
Base: 5,213 connected adults. Source: Kantar Media, DIMENSION study, Oct – Dec 2016. Question: How strongly do you agree/disagree with these statements? See Table 16 for full analysis.
16 | DIMENSION – Communication Planning in a Disrupted World
There is a clear (and hardly surprising) desire for relevance, with 64% agreeing, or strongly agreeing, that they prefer ads that are relevant to them (a figure that increases to 75% amongst the heavy online media user segment). 40% (60% of the heavy group) agree that they are seeing more relevant ads, which suggests some advertiser success in using data to ensure a degree of relevance. 55% agree that they often see ads for products they’ve already bought. This figure rises to 70% for the heavy group, which confirms that the technique of retargeting is widely used. Retargeting increases frequency amongst those reached. 71% of the total sample agree (or strongly agree) with this statement: ‘Sometimes I see the same ad over and over again, it’s too repetitive’. Consumers are reporting to the industry that they see excessive frequency as an issue. Even amongst the heavy group, the proportion agreeing with this statement is still high at 66%. As one respondent put it: “We have become so bombarded by advertising I don’t take any notice of it anymore.” And this comment on retargeting: “It’s annoying when I am targeted with advertising for stuff I have already bought, or places I have just been to.”
These responses from our consumer sample send a strong message: excessive frequency, and an unsophisticated use of retargeting to contact those who’ve already purchased may very well be among the reasons that 20% of connected adults choose to use blockers. This consumer reaction is not news to the industry, with leaders from within both agencies and adtech businesses telling us that they are concerned at the negative effect that these practices have on those exposed to them (see section 3).
Consumers may agree that they are well-reached, but they still avoid ads 20% of respondents (27% in the US) say they always use adblocker software (Table 9). A further 34% of our sample say they ‘sometimes’ use a blocker. Even though it is technically possible to ‘sometimes’ use blocker software (through the use of ‘white lists’) we feel that this high proportion of 34% reflects a general sentiment in favour of using ad avoidance techniques (like fast-forwarding recorded TV shows). The industry’s progress in using data and programmatic techniques to target existing and prospective customers is in danger of being undermined by these same customers rejecting or actively avoiding the messages sent their way.
LEADERS VOICE
If I got one more sale by re-targeting fifty times, [but] I’ve annoyed hundreds of people in the process, was that one extra sale worth it? Probably not. Toby Horry, Tesco, UK
Consumers Views | 17
CONSUMER VIEWS ON PERSONALISATION As we will hear loud and clear from the industry leaders we spoke to, the scale and range of data available to those planning and placing advertising makes it more possible than ever before to introduce a degree of personalisation into both the placement and the message itself.
But are consumers noticing this, and how do they feel about it?
The more they use online media, the more aware they are.
First, they are aware. 78% of connected adults say they ‘often’ or ‘sometimes’ see ads that they consider to be specifically shown to, or tailored for them.
We invited the sample to give us their views on this form of precision targeting by agreeing or disagreeing with the following 8 statements.
PRECISION TARGETING
HOW STRONGLY DO YOU AGREE/DISAGREE WITH THESE STATEMENTS? 1
2 Ads that are specifically shown or tailored to me are more interesting to me than other ads.
3 I like to see relevant ads based on my previous web browsing activities.
14% 30%
I think more advertising should be specifically targeted to me. 25%
23%
40%
47%
55% 30%
4
36%
5 Advertising that appears to be specifically targeted to me makes me more interested in the brand than advertising that appears to be more random.
6 I don’t mind seeing advertising targeted to me if it helps to pay for quality content on the websites I visit.
I would like to have more control over the types of advertising that I see online.
6%
17%
18%
30%
27%
51%
51%
32%
7
66%
8 I would prefer to pay for the content I use online, in order to avoid being targeted with advertising on free services such as Facebook (or local equivalent).
I don’t mind providing a website or social media network with information about myself if it means that the advertising I see is more relevant to me.
36%
39%
36%
31%
29%
Agree + strongly agree
30%
Neither agree/disagree
Disagree + strongly disagree
Base: 4,068 of adults those aware of targeting. Source: Kantar Media, DIMENSION study, Oct – Dec 2016. Question: Please select how strongly you agree/disagree with the following statements. See Table 18 for full analysis.
18 | DIMENSION – Communication Planning in a Disrupted World
Most of those questioned find tailored advertising more interesting than the average ad, and say that a more personalised approach makes them more interested in the brand being advertised. 66% (70% of heavy users) say they would like to have more control over the advertising they see, even though they realise that advertising is necessary in order to allow them to continue to benefit from free access to many of the sites they enjoy. This suggests an appreciation of the economics involved. 30% (45% of heavy users) say they would be prepared to pay for content to avoid advertising, but we can assume (given the preference for tailor-made ads) that the desire to avoid ads is really a wish to avoid irrelevant ads. There is also some reticence to providing data to help make the advertising even more relevant with 36% saying they wouldn’t be prepared to provide more data in return for greater relevance (the same percentage agreeing that they would be prepared to do so). The message is that whilst relevance is a good thing, and a degree of tailoring is acceptable (after all, that leads to relevance), consumers still want more control over what they see. For advertisers, this is a reminder that relevance and tailoring are fine as far as they go but there is a fine line between that and an unacceptable invasion of privacy.
Do consumers notice advertisers’ increasingly sophisticated strategies? Many leading advertisers follow a strategy of using multiple media forms to communicate with their target consumers. This approach is recognised by 51% of connected adults (Table 19) who say they notice advertising across multiple channels all the time or often. In the case of Brazil, 77% of the sample notice brands’ multi-media advertising ‘all the time’ or ‘often’. Exploring this further, ad expenditure analysis by Kantar IBOPE Media amongst the top spending 200 brands in Brazil over the year ending June 2016, showed that 69% invested in at least 5 different media forms over this period. There is a split between the established ad markets of UK, USA and France and the fastgrowing ad markets of Brazil and China when it comes to scepticism around the effect of advertising, with more than three-quarters of respondents in the latter two believing that multi-media advertising has a positive effect on them. Amongst those claiming to have been exposed to a multi-media campaign (85% of the total
sample), 43% say they will be more likely to go online to learn more about the brand, whereas 46% say they will likely look for the brand in store (Table 21). The conclusion is that multi-media strategies would appear to have a positive impact on consumer responsiveness and indeed is expected of major brands. Another much discussed input into the creation of brand strategies is the importance (or otherwise) of relevant context to a commercial message. Later in this report we will hear the views of our industry leaders on how they see the importance of context, but do consumers even notice the connection between these placements, and the content in which such messages appear? There’s a link between the proportion aware of contextual placements and the levels of exposure to online media forms, which might be expected. What might not be quite so expected (given the sample definition of connected adults) is the dominance of TV as the medium best known for contextual relevance (Table 23). Although TV ads are generally recalled at a higher level than ads on other media forms, the potential to match online messaging with content would not yet appear to be being fully exploited. Only 20% mention websites as the source of seeing ads fit well within the context in which they appear (the equivalent number for TV is 57%).
Consumers Views | 19
A FINAL WORD Throughout this report we’ve commented on consumer attitudes to advertising generally and to online advertising specifically. We’ve highlighted connected adults’ many positive views on the changes in advertising – most particularly in the growing relevance and tailoring of messaging.
We intend to repeat many facets of this work and to track changes in what we’ve termed ‘ad positivity’ amongst those most qualified to comment – heavy users of online media forms. By totaling this segments of the sample’s positive responses to the four statements below, we have arrived at an ‘ad positivity score’ of 195, which becomes the established benchmark for future studies.
AD POSITIVITY SCORE
HOW STRONGLY DO YOU AGREE/DISAGREE WITH THESE STATEMENTS? HEAVY USERS* AGREED: 1
2 Advertising is changing for the better
I like advertising generally, it can be enjoyable
59%
36%
3
4 I am seeing an increasing amount of advertising that is relevant to my interests
I often see ads that appear to be specifically shown or tailored to me
60%
40%
Agree Base: heavy users* (722 respondents) – access online media several times a day and represent 15% of connected adults. Source: Kantar Media, DIMENSION study, Oct – Dec 2016. See: (1) Table 8, (2) Table 11, (3) Table 16, (4) Table 17 for full analysis.
20 | DIMENSION – Communication Planning in a Disrupted World
SECTION 3
LEADERS VIEWS
INTRODUCTION Those in a leadership position within the media industry face a daunting task. Technology has completely reshaped the business, and it’s not done yet. Everything – from how (and by whom) content is created right through to how it’s delivered and consumed by the end-user – has been and continues to be transformed.
UK US
12
7
FRANCE BRAZIL
9
12
LEADER SAMPLE
40 industry leaders 4 major ad markets
M
edia owners focussed on entertaining and informing; advertisers looking to grow their business by communicating with and influencing target consumers; media agencies and adtech businesses providing the advice and the tools to connect businesses to prospective customers; all are operating within an environment driven by change. We asked 40 leaders from all sides of the industry, across four major advertising markets (the UK, the US, France and Brazil), for their point of view on two over-arching questions. Is the industry operating as efficiently as it could be, given the data, technology, and skills now available?
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How can brands and agencies drive ‘optimal’ efficiency without impacting effectiveness? In addition, what do the industry’s leaders see as the main drivers of change? What are the major challenges and opportunities they face, and how are they and their organisations shaping up to meet them? Set alongside the opinions of those they’re trying to reach and influence – the connected consumer – our leaders’ insights provide a fascinating view of the barriers and opportunities facing advertising today. Both groups embrace relevance; both are aware of how excessive frequency levels and unsophisticated retargeting can be counter-productive; both feel context is of value.
1
2 Media agencies have become adept at using data but to date the same take-up is yet to occur within their creative counterparts. We are yet to arrive at a point where data feeds ideas as opposed to driving short-term actions.
Data, accessing it and using it is both a challenge and an opportunity.
8
3
4
5
7 Whilst a degree of automation within the media process is inevitable (and desirable) the importance of human involvement (particularly in planning) cannot be overstated.
Access to data and objective verification of data within walled gardens is essential if we are to build truly effective consumer-centric plans. Industry leaders recognise the need to improve the whole online advertising experience for consumers.
An inclusive cross-channel measurement system is desirable.
LEADER INSIGHTS
6
NOT ALL DATA IS EQUAL. Advertisers need to become ‘smart data consumers’, interrogating what they have and understanding its limitations.
8 Outcome-based trading (or a risk-and-reward) and remuneration requires confidence from all involved in the metrics used to define success.
The future is collaborative, not transactional.
Leaders Views | 23
THE KEY DRIVERS OF CHANGE Data, data, data The single biggest change to occur within communications has clearly been the arrival of the internet and the concomitant digitalisation of all media forms. This affects everything – from the creation of content through to how and when people consume that content. A by-product is the amount of data generated, so it is not surprising that without exception, everyone we spoke with identified ‘data’ as a critical driver of change within our industry. The questions around ‘data’ are many. What data? Who owns it? How can it be accessed? How can it be analysed and who should do that? How can it be used to build better plans and make better buys? These were all topics at the forefront of respondents’ minds. The media side of the industry has always had numbers at the heart of everything – market research insights and analyses inform plans and messaging, audience measurement data drives buys, sales and advertising metrics help to define success. Our leaders were united in their views that the breadth and depth of the data now available and accessible from multiple sources is on a scale we haven’t seen before. And that this brings both opportunities and challenges. Agencies and advertisers can target more precisely, introduce a degree of personalisation to how messages are delivered to consumers and monitor results during campaigns, allowing them to adjust both spend and content as they go.
[My focus is] data, data, data. What’s different for 2017 is [the focus on] how we use that data to benefit our client’s businesses as well as ours.
”
Philippa Brown, OMG, UK
We are getting to a stage of development where technology can not only help the advertiser gain greater efficiency in connecting with a precise audience target, but also do so in a manner that enables delivery of a more relevant commercial message – and then allow for optimisation of those efforts in near real time.
”
Jane Clarke, CIMM, US
Adtech companies are positioning themselves to take advantage of this tsunami of data – sorting it, analysing it, interpreting it and actioning it. Once you’ve got an understanding of someone’s interest and intent in real time, then the opportunity to convey more accurate messaging is extremely compelling. Combining real-time information with human creativity will significantly improve the effectiveness of your advertising.
”
Rupert Staines, RadiumOne, UK
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However, whilst we may have more data than ever before, just because something is quantified does not necessarily mean that it is either accurate or objective. The phrase ‘not all data is equal’ was an oft repeated watch-out. Agencies in particular felt that one of the biggest challenges for advertisers as end-users is the need to become ‘smart data consumers’, knowing the right questions to ask and appreciating the limitations of the data available.
You have to have quality information, that’s critical. This big data issue causes another anxiety, anxiety about the quantity of information, it overtakes the basic principles of good information, which comes from good research.
”
Ricardo Esturaro, Globo, Brazil
‘Smart data consumers’ don’t simply accept the numbers without thinking about their provenance. Wherever it comes from – and clearly there are multiple sources of useful data for almost any circumstance – data alone without analysis has little value. Skill is required to concentrate those numbers down to an essence, to extract the insights of value to the business.
CONSUMERS VIEW
What tells me whether what I buy is good data quality? I repeat: third-party tools.
”
Erik-Marie Bion, AOL Advertising, France
The issue is less about what data there is and more about how it’s used to create something new.
”
Nick Emery, Mindshare Global, UK
I ‘often’ or ‘sometimes’ see ads that I consider to be specifically shown to, or tailored for me.
We collect a lot of data; what’s really important now is how to convert this data into strategic assets, and how this data will fuel our future strategies.
”
Nick Gyss, L'Oréal, France
78 %
Often + sometimes Base: 5,213 connected adults. Source: Kantar Media, DIMENSION study, Oct – Dec 2016. Question: How often do you see ads that appear to have been specifically shown or tailored to you? See Table 17 for full analysis.
Leaders Views | 25
Data drives relevance As we heard from consumers, 73% believe that advertisers are doing a better job communicating with them, whilst 61% say that technological changes make it easier for advertisers to reach them these days. Consumers embrace relevance, data drives relevance. Using data to reach people efficiently is, we believe, less of an issue today than using data to ensure that the content we reach them with is as relevant and thus as effective as possible. Combining data interpretation skills with creative story-telling is not easy, but that is the challenge. Using data imaginatively, as an aid to creation, is something the best agencies are already coming to terms with. The more complete the data picture, the better the outcome. Several respondents felt that those responsible for planning and placing advertising don’t always have full access to all the data they would like. Inevitably this comes back to who owns the data, and the extent to which these owners (be they advertisers or digital platforms) are prepared to grant access to third parties, like media agencies, or indeed adtech vendors. Finally, there is the extent to which some data owners, or data generators, should be subject to a form of external verification from those accessing the data to make decisions on how much to spend and where. These are all topics we’ll return to later.
[The issue is] not just how creative agencies can deliver lots of different versions [of an ad], but how they can make the big idea really sing and work with numerous audiences. I think again [the answer lies in] data, data, data. Creative agencies must become close to that data. They must embrace it like [the] media agencies have.
”
Philippa Brown, OMG, UK
People haven’t quite completely moved to [thinking that] the data will tell me what I should do, many aren’t brave even yet to make the leap; using the data to feed ideas and flexibility [in messaging] is unfortunately not quite there consistently.
”
Nick Emery, Mindshare Global, UK
CONSUMERS VIEW
I think advertisers are doing a better job of communicating with me. 73 %
Now Past
Changes make it easier for advertisers to reach me these days. 61 % Much easier + somewhat easier
Base: 5,213 connected adults. Source: Kantar Media, DIMENSION study, Oct – Dec 2016. See Table 14 and 15 for full analysis.
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The perfect data storm – or, just because we can doesn’t mean we should Too much of anything can present problems and this risks being the case with the explosion of data our leaders are experiencing. Indeed, many felt the industry is in danger of becoming a slave to it rather than mastering it. From an advertiser perspective, having access to so much data, much of it on a continuous basis, is leading to a focus on short-term measures. The dangers of short-termism have been amply illustrated by analysis conducted on behalf of the IPA (the UK’s ad agency trade body). Over the 10 years ending 2006 the proportion of IPA award winning case studies built on short-term effects was less than 10%. Over the 10 years ending 2016 this proportion had increased to around 25% (Peter Field, asi Conference, 2016).
We have the enabling technologies and we know how to use the data better, we have to ensure that we avoid over-targeting and that we never forget the top of the purchase funnel [the bit that builds the brand].
”
Simon Daglish, ITV, UK
Aside from short-termism, our leaders identified two major implications from the availability of so much data. First, it makes sense that the sheer quantity and short-term nature of what’s out there will lead to a degree of automation in how ad dollars are spent. This is no bad thing: the growth of programmatic techniques to place ads more efficiently is a positive, but the importance of human skills should not be underestimated in ensuring that a balance is maintained and that plans and buys are effective as well as efficient. The second implication concerns the effect that too great a reliance on automation is having on consumers’ attitudes towards advertising.
Technology is advancing, but people’s essence won’t change: feelings, creativity, interpersonal connections and emotions.
”
Paulo Loeb, F.biz, Brazil
Leaders Views | 27
Many within our consumer sample expressed concerns over aspects of online advertising – too much repetition, an over-reliance on re-targeting and the broad issue of privacy. Our leaders expressed the same sentiments.
CONSUMERS VIEW
I often see ads for products I’ve already bought.
55 % Agree + strongly agree Base: 5,213 connected adults. Source: Kantar Media, DIMENSION study, Oct – Dec 2016. See Table 16 for full analysis.
I would like to have more control over the types of advertising that I see online.
66 % Agree + strongly agree Base: 4,068 those aware of targeting Source: Kantar Media, DIMENSION study, Oct – Dec 2016. See Table 18 for full analysis.
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The downside of greater precision in the online ad marketplace is that there can be a saturation of “relevant” ads being delivered. We may be reaching the point where consumers have been exposed to all that they can in a given day and the industry needs to re-think at what point oversaturation actually begins to erode effectiveness.
”
Jane Clarke, CIMM, US
If I unplug myself from being part of digital, I would say [to the industry]: you have taken advantage of me, you never send me an ad at the right time, you assume that one action is going to be it, one [creative] message is going to be it. You… don’t try and engage with me, you don’t create a narrative with me.
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Khalil Ibrahimi, Admedo, UK
If I got one more sale by re-targeting fifty times, [but] I’ve annoyed hundreds of people in the process, was that one extra sale worth it? Probably not.
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Toby Horry, Tesco, UK
Blind and unthinking [online targeting] is like going into a department store and walking briefly past the shoe section, glancing at the shoes, and saying you quite like those, and then for the next hour having some sales man running around the store [after you] saying buy these shoes, buy these shoes. There is no depth, no brand context, no consumer understanding.
”
Nick Emery, Mindshare Global, UK
DATA TO IMPACT CREATIVE MESSAGING The issue of excessive repetition came up regularly in conversations with our consumer sample and indeed with our leader respondents. The ways that consumers interact with online communications have led advertisers to rethink the rules around effective frequency. In the past, when all communications were analogue, excessive repetition was unaffordable, and consumers’ exposure to ads was at a different, lesser level. Wear-out of ads was something much discussed in marketing circles, but the reality was that ads rarely wore out in consumers’ minds. Online has changed those rules. Unit prices for advertising are lower, entry costs for ad production have fallen - suddenly it is possible to bombard consumers. Reaching people isn’t a problem, as consumers have told us advertisers are getting far better at delivering relevant messages. But to date the creators of the messages have largely not embraced the opportunities identified by all this data.
I think there is an increasing desire to use data to inform everything from the development of the creative to the target of that creative but I think often advertisers just struggle with how to build an audience that serves as a ‘data backbone’ for these purposes.
”
Brent McGoldrick, Deep Root Analytics, US
Later in this section we’ll come back to the topic of context.
CONSUMERS VIEW
Sometimes I see the same ad over and over again, it’s too repetitive.
The more we get smarter with data… the bigger the chasm will become regarding the message not being attuned to the context or the relevancy of how the audience has been segmented.
”
Paul Frampton, Havas Media Group, UK
71 %
Agree + strongly agree Base: 5,213 connected adults. Source: Kantar Media, DIMENSION study, Oct – Dec 2016. See Table 16 for full analysis.
Leaders Views | 29
FROM MULTIPLE MEDIA TO CROSS MEDIA The fragmenting of audiences across a multitude of communication channels has been well documented. The difficulty in cutting through the clutter is evidenced by the sheer number of brands out there vying for attention. In their 2016 report ‘FragmentNation: The Challenge of Capacity and Marketing Fragmentation’, Kantar US commented: “Since 2008, (we’ve seen) a 30.3% increase in the number of brands trying to reach consumers with advertising. This is a rate of growth nearly eight times greater than the 3.9 percent increase in brands people are aware of, as tracked by the annual WPP BrandZ study conducted by Kantar Millward Brown. Consumers don’t have the capacity to keep up. Consumers are aware of more brands, yet at a rate disproportionately lower than the increasing number of brands trying to create awareness.” The difficulty in reaching people effectively in the midst of all this noise requires a deep understanding of how consumers are reached and influenced across channels. This in turn suggests a reframing of the debate away from simply looking at multiple channels, and measuring each within its own silo, and towards more consumer-centric planning. A more holistic approach can save advertisers money, as they are able to consider the cumulative effect of using multiple channels in a way best suited to build effectiveness. If such a measurement approach were to be adopted it would help advertisers go some way towards reducing the negatives we heard from consumers around excessive repetition. In summary, although the various stakeholders come at this topic from different positions, most agreed that bringing together the skills of data providers and users would require a great deal of goodwill and collaboration, from all sides of the industry.
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We are trying to grapple with how to create a universal common currency across all those eco systems. How can you neutrally advise people how much money they should be spending on Amazon, Google, Facebook? How they work? How do they interact with each other? How will they then work alongside television? How would the campaign work with outdoor?
”
Nick Emery, Mindshare Global, UK
I think we have got to find metrics that are more holistic but also simpler. The best businesses are able to organize and rally a team around delivering a simple goal.
”
Paul Frampton, Havas Media Group, UK
LEVELLING THE MEASUREMENT PLAYING FIELD In addition to a wish for more harmonised metrics, many of those we spoke to felt that a critical first step in achieving the desired cross-channel measurement system was agreement between all parties to the core principle of fair and equal access to whatever is defined as the most relevant and appropriate data. Most are familiar with the notion of the so-called ‘walled gardens’ within which sit the data generated by several of the major digital platforms, including Facebook and Google. What data is released, when and to whom is at the platform’s discretion. Users (advertisers and agencies) consider this practice to be lacking in transparency, and akin to ‘marking your own homework’. It creates mistrust and suspicion. Clearly the giant platforms hold a great deal of data on their users. The argument to protect users’ privacy is a strong one, but any individual’s privacy isn’t necessarily compromised by a degree of openness and transparency with aggregated data.
The person selling cannot control the data, for me this is very logical. We have two big players in Google and Facebook, who think the data they provide is the only expert system. I do not buy that idea. For me, the seller has to accept the auditing of his data by another company.
”
Marco Frade, LG, Brazil
The other problem is people’s fascination with the social players. They are quite happy to give them their money and then have them mark their homework and tell them if it worked. They forget they are the seller. There is no common currency across those things
”
Nick Emery, Mindshare Global, UK
Agencies and the advertisers they represent need to be able to spend their advertising dollars with the confidence that comes from knowing the data they’re using is credible, verifiable and objective. As we were preparing this report, Marc Pritchard, the Chief Marketing Officer at Procter and Gamble made a speech at the IAB’s Leadership event that was released into the public domain. We did not interview Mr Pritchard, but his remarks on this topic are pertinent: “We need objective, validated measurement to make sure we’re getting what we paid for… We need an objective, impartial judge to perform the measurement …We have too many who are self-reporting and incredibly we as clients are still tolerating it.”
There is a whole industry built around the careful building of reliable metrics. [In offline] they are reliable, independent and entirely trustworthy. And that is missing in digital.
”
David Wheldon, RBS, UK
Data transparency is a massive issue. We have to work with reliable open data that we believe and trust in.”
”
Philippa Brown, OMG, UK
Leaders Views | 31
WHAT’S NEXT? We started this section of our report by stating that all sides of the industry are ‘operating within an environment driven by change.’ We want to end it by considering several themes that our leaders raised as topics for the future. How do they see their world changing?
Collaboration and partnerships Our leaders sense that the days of the inevitable transactional and occasionally confrontational relationship between buyer and seller are coming to an end. We are entering an era of collaboration, within which everyone involved appreciates and understands the contribution made by others – be they media agencies, creative agencies, specialist service providers, adtech firms, research agencies and of course clients. This sentiment emerges from many of our interviews. The world of communication is simply too complex for any one organisation to manage every facet. There is a need for multiple specialists, managed and co-ordinated towards a defined goal, certainly, but still specialising in their particular fields. Looking forward, some feel that data-sharing partnerships will become more common between the two major sets of data-owners: media owner (and platform) businesses and advertisers. To summarise, we believe that inter-disciplinary collaborations will increase. A team brought together from different specialist disciplines is better placed than groups of multi-skilled all-rounders to meet the communications challenges ahead.
I think our job, as agencies and agency groups, is increasingly becoming one about business partnership to help drive [the] macro strategy and customer experience; and all of the [elements included within] that journey.
”
Paul Frampton, Havas Media Group, UK
I think the next year will be a pivotal year for that kind of development [partnerships with clients] to take hold.
”
Simon Daglish, ITV, UK
Outcome-based trading The sense of greater collaboration, and of a true partnership between advertiser and agency(ies) speaks to the issue of moving to a system of shared risk and reward. Our leaders discussed what has become known as ‘outcome based trading’, the idea of linking payments to agencies, media owners and adtech vendors to business results.
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Partnerships are the future, yes.
”
Mark Howe, Google, EMEA
Views on this were mixed, and can be summarised as ensuring that there is an appreciation of the (sometimes limited) role that each party is able to play towards the final outcome. A media owner can only do so much to ensure a brand’s sales success. Agencies can play a larger, more central role in success than any single media owner; plus a move towards a rewards-based remuneration is in line with their desire to move upstream and become more strategic partners and advisors to their clients. Many point out that a strong partnership built on mutual trust is key if outcome based trading is ever going to become widely adopted. Both sides have to agree what success looks like, and how it is to be measured. Confidence in the metrics that define success is fundamental. Agencies also feel that they should be involved in decisions impacting the eventual outcome. Some agencies point out that not all advertisers are happy to share confidential data, which makes a shared risk and reward system tricky. Whilst understanding the benefits, clients too point to the real-life difficulties in setting up such a system. Media agencies have long argued that their clients are too focussed on output measures (like prices paid, or impressions bought) and that their strategic and planning skills are under-valued as a result. They are naturally keen to move to some sort of performance-based remuneration, whether that performance is based on the client’s business results, or on softer measures like service quality. We think it likely that a combination of data availability, collaboration and partnerships and the growing complexity of planning and buying media will mean that pay structures within the business will evolve towards some sort of outcome-based trading. There are barriers to overcome (not least the fact that many clients don’t set marketing service budgets in a way which would allow such flexibility) but many believe this trend will accelerate over the coming years.
We don’t get any say over the product, what’s in it, over the creative, over the distribution, over the price, over promotions. All these things are drivers to the success of a brand and we’re just one small cog in it.
”
Simon Daglish, ITV, UK
Ideally we would like a pay-forperformance model, but we also understand that the agency is just a small part of that performance.
”
Reid Strohmeier, SAP, US
Sometimes, there are issues about data ownership and there are still things that people like to keep to themselves. I am not sure there are many clients who are properly set up to pay by results.
”
Nick Emery, Mindshare Global, UK
I would say almost 90% of new client conversations involve a significant at risk performance element… [but] almost half the time the final conversation reverts to a simpler model because it gets put in the too hard box.
”
Paul Frampton, Havas Media Group, UK
We are in the foothills of outcome payment.
”
David Wheldon, RBS, UK
The speed of moving towards this form of remuneration will be in part determined by the ready availability of trusted, objective, and relevant metrics on which all sides can agree.
Leaders Views | 33
The importance of context As measures of success evolve beyond the bluntest media metrics, it seems likely that understanding the context within which the message is received will become more important within communications planning. We asked consumers whether they noticed when (or if) ads were placed in context (see section 2). It seems a sizeable proportion do: 30% of the total consumer sample reported that they are aware of ads being ‘a good fit’ with the context in which they appear. Our leaders agree that a consideration of the context within which a message is received will grow in importance. The importance of context is magnified when considering non-commercial messaging, as the connection between brand and editorial is more closely intertwined. Brands benefit from a halo effect by placing their ads within the most appropriate context. However, what a brand says directly about itself in its controlled advertising messages and what is said about it by others, be they journalists or social media commentators, is not always the same thing.
CONSUMERS VIEW
I'm aware of ads being a good fit with the context in which they appear. 22%
Don't Know
I think context is massively important. If you are targeting me when I am trying to get rid of my garden furniture [on eBay] or when I am reading a thoughtful piece in the Guardian, it is a completely different experience. Of course context matters.
”
David Wheldon, RBS, UK
I would say we’re coming into a new age around context being the most critical component of a media or brand plan. The winners will match the offer, the content, or request at the moment of truth when an audience is ready to engage with said message. It's not just knowing the "target", it's knowing when that person is ready to engage.
”
Penry Price, LinkedIn, US
As a trusted news source with an engaged readership, the benefits of the Guardian’s environment flow through to effective partnerships with brands on our site. In an increasingly confusing world, high quality journalism is more important than ever. The Guardian delivers that quality every day, and thus creates a highly desirable editorial context for our brand advertisers.
”
David Pemsel, Guardian Media Group, UK
30% Yes
48% No Base: 5,213 connected adults. Source: Kantar Media, DIMENSION study, Oct – Dec 2016. See Table 22 for full analysis.
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Brands might not be able to manage every aspect of what is thought and said about them, but they can at least understand what’s going on by monitoring what’s being said and measuring the effect. After all, as the US investor Warren Buffet says: “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.” Many recognise that in a complex, multi-layered media world, an impression isn’t an impression isn’t an impression. Different media forms are consumed differently, different communication techniques affect consumers in different ways. Consideration needs to be given to the subtle business of matching creative with context.
I think it is about understanding the context that you are in and the message you are trying to [transmit]. So, obviously, t’was ever thus a big three minute Nike blockbuster sits better in the cinema or TV than it does on mobile, but then you can have a different relationship [on mobile].
”
Nick Emery, Mindshare Global, UK
We have to be mindful of how to communicate and just because I can deliver a segment, that doesn’t mean that is the best way to deliver a message. There is more to consider: audience expectations of the platform, audience mindset and context.
”
Brent McGoldrick, Deep Root Analytics, US
CONSUMERS VIEW
I prefer to see advertising that is relevant to my interests.
64 %
As one respondent said:
It’s annoying when I am targeted with advertising for stuff I have already bought, or places I have just been to.
Agree + strongly agree Base: 5,213 connected adults. Source: Kantar Media, DIMENSION study, Oct – Dec 2016. See Table 16 for full analysis.
Leaders Views | 35
Taking advantage of change As the world changes and as data takes centre stage, agencies, clients and (to a lesser degree) media owners are changing too. A different and broader range of skills are required than before to deliver to a diversifying service. All sides are embracing automation, but all agree it is important not to go so far towards automation that you lose any sense of why people do what they do, not just that they do it. Cultural significance, a sense of wonder, and creativity can get lost within an algorithm.
Just five years ago, 80% of our media revenue came from print and now it is only 20%. (We focus on) how we bring in partners – content marketing is huge, (big) increase in live events, in mobile, in video programmatic.
”
Tom Davis, Forbes Media, US
We are employing more analysts than ever before. That is a challenge in itself, because so are every other group. A lot more data analysts to help us understand, collate, segment, sort and draw out the insights and work with the planners in an integrated way. There is a real need for talent in that area.
”
Philippa Brown, OMG, UK
Using algorithms to chase audience numbers almost regardless of where that audience happens to be can be a dangerous game for advertisers. Channels need to be selected not only to deliver the right audience but also to ensure the message is seen within the right context. Our colleagues at Kantar TNS put it like this in their ‘Connected Life’ report: “Programmatic technology and data driven targeting have unlocked great opportunities for businesses in how they segment and buy their audiences online. However, problems arise when businesses fixate on using this to chase eyeballs on a cheapest cost-per-view basis, and ignore questions of context and timing.”
It’s essential that we remember automation in the end is a tool, not a replacement for the experience and insight that effective advertisers bring to the market. An algorithm is not an automatic vehicle for greater ROI. No algorithm can ever replace the intuitive understanding and interpretation of data that the best marketers possess.
”
Jane Clarke, CIMM, US
If you do not know what you want, it's no use having a lot of data, it'll only complicate your decision. If you do not have good professionals to navigate the wealth of data you have, you will not have efficiency.
”
Alberto Pecegueiro, Globosat, Brazil
The new skills are in data scientists, mathematicians… [but] I think the jobs of a creative strategist, a planner in a creative agency, plus strategic and communications planners in a media agency, [these] will become really coveted and highly valued positions over the course of the next ten years.
”
Mark Howe, Google, EMEA
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EVERYTHING MOVES – AND IS MOBILE The media world is shifting, ever moving. One key driver of change is the growth of mobile media forms. Mobile media is ubiquitous – 93% of our connected consumer sample claimed to own a smartphone. Mobile advertising has lagged behind consumer take-up, for a number of reasons, including the fact that the differing technical standards that used to bedevil the business made it hard to use. Then there is/was the infrastructure that limited, or at best slowed, the take-up of technologies like 4G in some markets. We argued in section 2 that the trend towards adblockers would appear to have less to do with any intrinsic dislike of advertising (47% of blockers either tolerate or like ads) and more to do with the effect that ads have on consumers’ online experiences. We suspect, as do some of our leaders, that more specifically, adblockers improve consumers’ mobile experience. At least these problems are now recognised, and are on the way to being improved. As these improvements take hold mobile is finally becoming the major advertising vehicle it has long promised to be. Many of our leaders are in no doubt that mobile represents an exciting future.
Users are tired of these ads ruining their online experience and blocking their browsing.
”
Pierre Chappaz, Teads, France
I’m sick of having my mobile… slow down, having something take up space and prevent me from watching my content, and being asked to watch a video zoom across my screen and waiting 30 seconds until it’s over so I can watch my content.
”
Erik-Marie Bion, AOL Advertising, France
CONSUMERS VIEW Adblocker users:
I like or tolerate advertising.
47 % I like it generally, it can be enjoyable + doesn’t bother me one way or the other
Mobile has become a second tectonic shift [in advertising terms]. Consumer usage of mobile [has] exploded. I think [we] really underestimated in terms of how quickly consumers have adopted it. How do we engage with our audiences on mobile devices? How do we become useful for them in their daily lives on mobile devices? It’s a very, very different mind-set than we had to deal with before when it was very much a push world. And now obviously with the mobile device, [everything] is much more personalised.
”
Penry Price, LinkedIn, US
Base: 1,061 of adults using adblocking software. Source: Kantar Media, DIMENSION study, Oct – Dec 2016. See Table 11 for full analysis.
Leaders Views | 37
The fact that the relationship between a consumer and a mobile device is a more personal one than exists with a laptop or desktop computer brings its own challenges. The issue of personalisation is a double-edged sword, offering relevance but at the same time risking concerns over intrusion (a balance we noted in the responses to the consumer survey). With intrusion comes a greater consumer focus on privacy. If the messaging is relevant and in the receiver’s best interests, then privacy concerns may recede. But these concerns are still there, as our consumers told us (only 36% said they would be prepared to provide more data in return for more relevant ads). As we said at the start: data, data, data.
Users have a very close relationship with their mobile, so they need a pleasant experience at all times. They won't put up with unpleasant experiences. It's this [mobile] generation that's going to force the advertising market to drop the bad practices and invent something cleverer, more respectful, more subtle.
”
Pierre Chappaz, Teads, France
I think that we're heading toward a world in which there will be less advertising pressure, but more quality, and much more individualised advertising.
”
Pierre Chappaz, Teads, France
CONSUMERS VIEW
Targeted ads make me more interested in a brand than random ads
51 %
Agree + strongly agree Base: 4,068 of adults those aware of targeting. Source: Kantar Media, DIMENSION study, Oct – Dec 2016. See Table 18 for full analysis.
38 | DIMENSION – Communication Planning in a Disrupted World
For example, it’s noon, I am with you, walking down a street and get a message that a nearby restaurant is offering a discount for lunch. That is mobile in action, using data. If I have been to that restaurant before, they may treat me in a different way. In this case, [the communication] is not intrusive, it’s in my interests. However, if I get that message at 3 am or on a Saturday, then it could be intrusive.
”
Paulo Loeb, F.biz, Brazil
When I consider WhatsApp and think about people’s privacy and the information that they share on WhatsApp on a daily basis, it concerns me what they might do with that data.
”
Vikki Chowney, Hill + Knowlton Strategies, UK
SECTION 4
INSIGHTS FROM INDUSTRY LEADERS
SUMMARY Throughout this study we have had privileged access to some of the industry’s most senior thought leaders.
H
ere we summarise their key thoughts and opinions as they relate to each of the key stakeholder groups: advertisers, agencies, media owners and adtech organisations.
FOR ADVERTISERS D ata is changing how plans are built and buys are made. Not all data is equally valuable; but accessibility to the most relevant datasets, whoever owns them, is crucial in driving effective communication. D ata needs interpretation to release its value as a strategic asset. Applying short-term data to drive short-term buys at the expense of all else risks damaging a brand’s equity. O nline advertising needs a different set of consumer-centred rules and benchmarks to offline. Offline media learnings cannot simply be translated.
FOR MEDIA OWNERS & PLATFORMS artnerships, with clients, agencies, P specialist suppliers are the future. iversifying around a core proposition D drives revenues whilst maintaining the media owner’s key values. obile devices represent a huge and exciting M opportunity – but content needs to be properly adapted for the mobile consumer. ata accessibility is a major issue – partnerships D are built on all sides being open and transparent to the benefit of the end client.
C ontext is key: an impression is not an impression is not an impression. he use of risk-and-reward remuneration T schemes for your major partners will grow.
FOR AGENCIES D ata per se is less important than what you do with it. utomation of process is desirable but not at A the expense of human-based interpretative and strategic skills.
FOR ADTECH SPECIALISTS ook beyond the technology and consider L the consumer, and his/her experience of online advertising.
The future is collaborative, not transactional.
elp all sides understand and get the most H from the technology. Start by speaking their language and appreciating their goals.
M easurement systems that can be applied across channels are desirable; and should be a core objective for the industry.
ift your eyes from the algorithms L to consider the broader world of communication and measurement.
40 | DIMENSION – Communication Planning in a Disrupted World
APPENDIX
TABLES
TABLE 1
Connected adults: Sample profile – Gender and age by market (%)
Sample
TOTAL
UK
USA
FRANCE
BRAZIL
CHINA
5,213
1,035
1,014
1,000
1,097
1,067
Male
49
49
49
48
47
52
Female
51
51
51
52
53
48
18-34
39
32
30
29
49
51
35-44
20
18
17
17
23
23
80 100 38
36
24
18
45-64
0
20
40
60
80 100 30
0
20
40
60
80 100 33
12
65+
0
20
40
60
18
0
TABLE 2
4
18
15 20
40
60
80
100
0
20
40
60
80
7 100
0
20
40
60
80
100
Connected adults: Sample profile – Work status and location (%)
Sample
TOTAL
UK
USA
FRANCE
BRAZIL
CHINA
5,213
1,035
1,014
1,000
1,097
1,067
Working FT
58
44
45
54
59
Working PT
13
17
13
10
21
5
Not working
28
39
42
36
21
7
Rural
17
24
19
40
3
1
Urban Suburban
0
20
40
60
80 100 55
28
0
20
40
60
23100
80
0
20
40
60
52
42 | DIMENSION – Communication Planning in a Disrupted World
80 100 25
56
0
20
40
60
41100
80
20
0
20
40
60
9080
100
7
88
0
20
40
60
80 92
100
8
TABLE 3
Connected adults: Sample profile – Device access (%)
Sample
TOTAL
UK
USA
FRANCE
BRAZIL
CHINA
5,213
1,035
1,014
1,000
1,097
1,067
69
Desktop
58
82
Laptop
66
80
63
80
75
79
82 84
86
Tablet
65
73
66
65
53
69
Smart TV
44
38
36
28
55
59
93
Smartphone 0
20
40
TABLE 4
60
0
20
40
60
100
0
20
40
60
80
91 100
0
20
40
60
80
98 100
0
20
40
60
80
99 100
0
20
40
60
UK
USA
FRANCE
BRAZIL
CHINA
5,213
1,035
1,014
1,000
1,097
1,067
28
23 76
3 or more
0
80
TOTAL
2 or less
TABLE 5
90
88 100
80
100
Connected adults: Sample profile – Number of devices (%)
Sample
Sample
80
20
40
26
73
29
74
22
70
78
Connected adults: Sample profile – Frequency of online media use (%) 60
80
100
0
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
15
80
100
0
20
40
60
84
80
100
0
20
40
60
TOTAL
UK
USA
FRANCE
BRAZIL
CHINA
5,213
1,035
1,014
1,000
1,097
1,067
80
Heavy
15
8
13
4
29
20
Medium
35
30
24
15
42
61
Light
50
63
63
30
19
82
100
Tables | 43
TABLE 6
Media forms ‘ever accessed’ (%) Used in definition of frequency of use
*
Total
5,213
Sample
TV on a TV set
97
TV on a TV set via a connected device
61
TV online using a connected service*
73
Online video (e.g. YouTube)*
85
TV via an app on a mobile device*
70
News/articles in print (newspaper)
83
News/articles online*
93
News/articles via mobile device*
84
Magazine in print
84
Blog*
75
Listen to the radio
91
Listen to the radio online*
68
See ads on billboards
90
Play video games online (any device)*
63
Social media*
89
0 Music streaming services
70
Use the internet in any way*
100
44 | DIMENSION – Communication Planning in a Disrupted World
TABLE 7 What counts as ‘advertising’ (%) TOTAL
5,213
Sample
Ads on TV, radio, in print, online etc
76
Messages from brands in printed media forms
61
Messages from brands in news and articles online
62
Messages from brands on social media Recommended results on search engines
64 52
0 0 0 0 0 0 0
Sponsorship of TV or radio programmes
67
None of the above
9
20 20 20 20 20
40 40
60 60
40
60
40
60
40
60
40
60
40
60
20 20
Tables | 45
TABLE 8
Is advertising changing for the better or the worse? (%)
Sample
Total
Heavy
Medium
Light
5,213
772
1,807
2,634
Changing for the better
36
59 46
22
Neither better nor worse
38
27 35
42
Changing for the worse
20
11
26
Don’t know / haven’t noticed 7
0
TABLE 9
20
40
60
80
100
0
20
40
15
3 4 10
60
80
100
0
20
40
60
80
100
0
20
40
60
80
100
Use of adblockers by frequency of media use (%)
Sample
Total
Heavy
Medium
Light
5,213
772
1,807
2,634
Always use adblocker
20
22
19
21
Sometimes use adblocker
34
33 38
31
Don’t use adblocker
46
45 42
48
0
20
40
60
80
100
0
20
40
60
80
46 | DIMENSION – Communication Planning in a Disrupted World
100
0
20
40
60
80
100
0
20
40
60
80
100
TABLE 10
Sample
Use of adblockers by market (%)
Total
UK
USA
FRANCE
BRAZIL
CHINA
5,213
1,035
1,014
1,000
1,097
1,067
Always
20
19
27
23
16
18
Sometimes
34
37
31
30
27
46
Don’t use
46
44
42
47
57
36
0
20
TABLE 11
Sample
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
100
General attitudes towards advertising (%)
Total
Heavy
Medium
Light
Blockers (always)
5,213
772
1,807
2,634
1,061
I dislike it generally
32
23
27
37
53
Doesn’t bother me one way or the other
46
41
43
50
33
I like it generally, it can be enjoyable
22
36
30
13
14
Tables | 47
TABLE 12
Attitudes towards advertising in main media forms (%)
Sample
Total
TV
Newspapers
Magazines
5,213
5,213
5,213
5,213
I dislike it generally
32
32
13
13
Doesn’t bother me one way or the other
46
37
52
47
I like it generally, it can be enjoyable
22
33
28
33
Don’t know / not applicable
0
0
TABLE 13
20
40
60
80
100
0
20
40
60
2
80
100
0
20
40
60
7
80
100
0
20
40
60
7
80
100
Attitudes towards advertising in main media forms (%)
Heavy users
Total
TV
Newspapers
772
772
772
Magazines
772
I dislike it generally
23
22
Doesn’t bother me one way or the other
41
32
45 43
I like it generally, it can be enjoyable
36
44
39
Don’t know / not applicable
0
48 | DIMENSION – Communication Planning in a Disrupted World
2
11
6
11
43 3
Radio
Billboards
Cinema
Online TV
Online Video
Online Print
5,213
5,213
5,213
5,213
5,213
5,213
Social Media
5,213
26 13 21 29 30 24 28 42
51 35 32
31 44 35
24 31 37 24 24 26 27 7 5 7 15 16 6 10
0
20
40
60
Radio
772
80
100
0
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
Billboards
Cinema
Online TV
Online Video
Online Print
772
772
772
772
772
100
0
20
40
60
80
100
Social Media
772
17 10 18 26 25 16 21 42 45 30 28 30 40 32 35 42 49 43 42 41 43 5 3 3 3 3 3 3
Tables | 49
TABLE 14
Do you think advertisers are doing a better job of communicating to you than in the past? (%)
Sample
Total
Heavy
Medium
Light
5,213
772
1,807
2,634
I think advertisers are doing a better job now
I think advertisers did a better job in the past
27
TABLE 15
73
85 80 64 15
20
36
Do you think all these changes are making it easier or more difficult for brands to work out where to advertise to reach you? (%)
Sample
Total
Heavy
Medium
Light
5,213
772
1,807
2,634
Much easier
33
52
36
26
Somewhat easier
28
28
35
24
Much the same
25
13
20
32
Somewhat more difficult
8
Much more difficult
6 0
20
40
60
80
100
0
20
40
60
4
6 10
3 80
50 | DIMENSION – Communication Planning in a Disrupted World
100
0
20
40
60
3 80
100
0
20
40
60
9 80
100
TABLE 16
How strongly do you agree/disagree with these statements? (%)
Total
First % = total sample Second % = heavy segment
Agree + strongly agree
Disagree + strongly disagree
5,213 772
Sample Heavy users
Seen an increasing amount of advertising that is relevant
Ads on websites I visit not usually that relevant
Often see ads online for products I’ve already bought
40
35
25
60
26 14
39
41
20
38
33 29
31
55
13
70 22 8
Prefer to see advertising that is relevant to my interests
Sometimes I see the same ad over and over again
TABLE 17
Neither agree/ disagree
64
27 10
75
17 8
71
21 9
66
20 14
How often do you see ads specifically shown or tailored to you? (%)
Sample
Total
Heavy
Medium
Light
5,213
772
1,807
2,634
Often
26
40
29
21
Sometimes
52
49
56
49
Never
9
Don’t know / haven’t noticed 13
0
20
40
60
80
100
0
20
40
60
6
8 11
4
8
80
100
0
20
40
60
80
100
0
20
40
19
60
80
100
Tables | 51
TABLE 18
How strongly do you agree/disagree with statements? (%) Base – those aware of targeting (4,068/78%)
First % = those aware of targeting Second % = heavy segment
Sample Heavy users
Total
4,068 690
Ads specifically shown or tailored are more interesting Like to see relevant ads based on my web browsing activities More advertising should be specifically targeted to me Targeted ads make me more interested in a brand than random ads Don’t mind seeing targeted ads if help pay for quality web content I would like more control over types of advertising I see online Don’t mind providing data if it leads to more relevant ads Prefer to pay for content if it means I can avoid advertising
52 | DIMENSION – Communication Planning in a Disrupted World
Agree + strongly agree
Neither agree/ disagree
Disagree + strongly disagree
55
30
14
70
22
8
47
30
23
66
22
12
40
36
25
56
28
16
51
30
18
70
22
8
51
32
17
64
23
13
66
27
6
70
23
7
36
29
36
50
24
26
30
31
39
45
26
29
TABLE 19
Sample
Notice advertising for brand across multiple media (%)
Total
UK
USA
France
Brazil
China
5,213
1,035
1,014
1,000
1,097
1,067
All the time
14
8
14
12
25
10
Often
37
23
22
35
52
51
Sometimes
34
45
42
32
21
33
Never
5
Don’t know / 10 haven’t noticed 0
20
40
60
80
100
0
20
40
9 15
60
80
100
0
20
40
7 16
60
80
100
0
20
40
8 13
60
80
100
0
20
40
60
80
1
4
2
3
100
0
20
40
60
80
100
Tables | 53
TABLE 20
Thoughts about advertising same brand across multiple media (%)
Sample
Total
UK
USA
5,213
1,035
1,014
Am more likely to notice ads like this
29
23
21
These ads help me better understand what the brand offers
22
13
16
Not a good way to communicate with me
18
14
16
Makes no difference to what I think or feel about a brand
43
55
55
0
TABLE 21
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
100
Actions following seeing multi-media campaigns (%)
Base – those claiming exposure to a multi-media campaign (4,425/85%)
Total Sample
No difference
More likely
Less likely
4,425
Seek more information about the brand online
43
50
7
Contact the brand for more information
35
54
11
Talk about the brand with friends, colleagues or family
41
51
9
Purchase the brand
41
52
6
Look for the brand in stores
46
48
6
0
54 | DIMENSION – Communication Planning in a Disrupted World
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
10
0
20
40
60
80
100
France
Brazil
China
1,000
1,097
1,067
15
42
42
11
34
36
29
15
15
54
26
28
0
20
40
60
80
100
0
20
TABLE 22
40
60
80
100
0
20
40
60
80
100
Aware of ads being a good fit with the context in which they appear (%)
Sample
Total
Heavy
Medium
Light
5,213
772
1,807
2,634
Yes
30
57
39
17
No
48
29
41
58
Don’t know
22
15
20
25
0
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
100
Tables | 55
TABLE 23
Where did you see ads that were a good contextual fit? (%) Base – those recalling ads that fit well contextually (1,109/21%)
Sample
Total
Heavy
Medium
Light
1,109
340
495
274
TV
57
53
52 70
Website
20
22
25
Magazines
2
2
3
Newspapers
1
1
1 0
Social media
8
8
8
9
Mobile app
6
7
6
4
Radio
2
2
2
3
Billboard
3
Can’t remember
0
0
20
40
60
80
100
0
20
40
60
80
3 100
0
20
40
60
0
56 | DIMENSION – Communication Planning in a Disrupted World
80
10
3 100
0
20
40
60
0
1
80
2 1
100
CONTACT US For more about DIMENSION and how it can help your business, please get in touch:
GLOBAL Anna Reeves E: anna.reeves@kantarmedia.com
ASIA PACIFIC
NORDICS & BALTICS
Sophia Yang
Frida Wentzel
E: sophia.yang@cicdata.com
E: frida.wentzel@tns-sifo.se
EMEA
NORTH AMERICA
Franรงois Nicolon
Elaine Chen
E: francois.nicolon@kantarmedia.com
E: elaine.chen@kantarmedia.com
LATIN AMERICA
UK & IRELAND
Thiciana Simรฃo
Claire Melly
E: thiciana.simao@kantaribopemedia.com
E: claire.melly@kantarmedia.com
For more in-depth insights go to www.kantarmedia.com/DIMENSION
Written and published by Kantar Media 2017 All rights reserved.
Contact us | 57
About Kantar Media Kantar Media is a global leader in media intelligence, providing clients with the data they need to make informed decisions on all aspects of media measurement, monitoring and selection. Part of Kantar, the data investment management arm of WPP, Kantar Media provides the most comprehensive and accurate intelligence on media consumption, performance and value. For further information, please visit us at www.kantarmedia.com