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Consumer packaged goods (CPG) saw the third-highest volume of digital commerce sales on desktop and mobile in Q1 2015, putting the category just below apparel & accessories and computer hardware, according to comScore. The industry is still largely dominated by in-person purchases but online sales are growing rapidly, increasing 21% year-over-year (YoY) in 2014 — 14x the rate for the CPG market overall. Continued online growth in the CPG is helping fuel the success of sites like Amazon, Walmart, and Target. Recently major e-commerce players have made bigger bets on the CPG category:
With more retailers going after the space, comScore estimates that CPG online sales, including groceries, healthcare products, and home and cleaning supplies, could become a $40 billion a year industry this year.
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Month: June 2015
IoT WILL DRIVE BETTER OUTREACH AND ENGAGEMENT BETWEEN GOVERNMENT AND CITIZENS:
A new IDC report predicts that 50% of government agencies that are engaging in “direct citizen engagement efforts” will put 25% of their program budgets towards IoT and third-platform technologies. IDC calls third-platform technologies the combination of mobile, social media, big data, and cloud computing. Citizen engagement efforts refers to government outreach to citizens for all types of services provided by municipalities. This could include services like waste management, utility usage, and public transportation.
Governments looking to improve quality of life and allocate resources more efficiently will look to IoT and third-platform technologies to improve communications and services they provide to their citizens, according to IDC.
The report maps out five stages of maturity for governments utilizing these technologies to improve citizen engagement and resource allocation, and identifies the most pressing challenges for governments as employee training and implementing learnings that come through IoT devices to better and more efficiently deliver services.
ROI on Customer Service as part of the Customer Experience
ONLINE CUSTOMER SERVICE LAGS TRADITIONAL CHANNELS:
Shoppers in need of customer service say they’ll go online to reach out to a company as a last resort, according to a study from The Northridge Group. It is only when they have exhausted all other options that they then turn to live chat, email, or social media to submit an inquiry or complaint. Many customers still prefer speaking to someone on the phone for these types of inquiries. For the consumers surveyed who have contacted brands on social media, one-third of them never received a response. Due to the inherent speed of communication via the web, many consumers feel that slow customer service online is unacceptable:
38% of consumers expect a company’s first response on social media within the same day.
30% said it usually takes a week or longer to receive a first response on social media.
31% of consumers expect a company to resolve an issue on social media within the same day.
39% said that it usually takes a week or longer to have the issue resolved on social media.
As consumers begin to expect faster digital communications, retailers need to keep up with customer service requests. Online channels provide an important opportunity for meeting customer needs as soon as retailers find out about them. Companies that respond quickly to social media inquiries can help drive up customer loyalty, helping to increase revenue over time.
To Drive Brand Engagement, Put Customers Behind The Wheel
Another example of a great campaign to grow a community around a brand was when Belkin co-created a customizable phone case in partnership with Lego. Belkin encouraged consumers to post their personalized designs on Instagram with the hashtag #LEGOxBelkin. However, what was really cool was the integration of these photos into Belkin’s product page—in essence, allowing consumer photos to sell the phone case for the company.
The benefits of enabling social community interaction within your brand or retail site and encouraging the sharing of interesting, user-generated content include:
1. Increased engagement and direct sales.
2. Reduced bounce rate and deflection to other research channels.
3. Improved brand advocacy and loyalty by offering a place to gain trusted advice, reviews, and help.
4. Greater quantity and quality of UGC that improves SEO and traffic.
5. Free advertising and greater brand awareness with increased social sharing of products and content.
6. Helping to maintain your brand’s authenticity and relevance.
http://m.cmo.com/articles/2015/6/2/to-drive-brand-engagement-put-customers-behind-the-wheel.html?utm_content=buffer927b2&utm_medium=social&utm_source=linkedin.com&utm_campaign=buffer
Internet of Things Data Could Fuel Ad Targeting | Data-Driven Marketing – Advertising Age
The Internet of Things has promised to turn our everyday interactions with stuff into data for logistical and marketing applications.
But now that more and more corporations, including Diageo and Mondelez, have tested actual web-connected products in the market, the industry is approaching the next stage of connected appliances and food packaging. That means figuring out where all that information will go and how it will be used. IoT platform company Evrythng sees a home for data generated by connected thermostats, bottles of booze, designer handbags and washing machines in first-party marketing databases.
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The firm is partnering with Trueffect, a digital ad firm specializing in first-party data targeting, to work towards devising ways marketers can use data gathered when consumers use their products. The firms hope to directly communicate with those consumers and, yes, perhaps target ad messages to them. Evrythng and Trueffect exchange product interaction and consumer data through an API integration between their two platforms.
“We’re connecting our systems together and going to market together to do this,” said Andy Hobsbawm, founder and CMO of Evrythng. The company works with liquor maker Diageo and CPG manufacturer Mondelez to embed digital tracking technology into their products, but he would not reveal whether either of the two firms are employing the Trueffect system.
Evrythng assigns a unique ID to the products it enhances, which can be connected through embedded technology — say, in the case of a home appliance — or through a digital tag such as a QR code which connects to a mobile app.
“As soon as the consumer connects the device to the readable element in the packaging, that creates a signal,” said Martin Smith, senior VP of solutions and development at Trueffect.
Diageo used the Evrythng platform to turn bottles of Johnnie Walker scotch into personalized gifts, allowing purchasers to customize a video for recipients. By suggesting purchasers and end users of the product opt-in to receive personalized options from Diageo, the effort helped the spirits purveyor do what most product manufacturers struggle to: find out who is buying — and in this case, drinking — their products.
http://adage.com/article/datadriven-marketing/iot-meets-ad-targeting-evrythng-pair-trueffect/298875/
Marketers, Creative Ad Execs Adjust to Video Ads With No Sound – WSJ
“Things like the delayed product reveal, the slow ad payoff, that stuff just doesn’t’ work anymore,” he said. “Now you have to think, how do you make this unskippable, which is really hard to do.”
http://www.wsj.com/articles/BL-269B-3667
Content Marketing makes a run for it
For a while, content marketing and native advertising budgets were cobbled together from the leftovers of more traditional digital allocations, the tactics seen more as auxiliary than central to campaigns. Those times are clearly behind us, according to the most recent State of the Industry research conducted with Digiday.
In fact, 60 percent of brands and agencies view content marketing as “very significant” to their overall marketing strategies. They clearly expect this importance to continue, as content marketing and native advertising budgets are on track to grow 59 percent and 46 percent respectively by 2017, outpacing the growth of industry mainstays like display and search ad spend.
“The barrier is overcoming this idea that it’s harder or more expensive or that it takes more resources,” said Bill Evans, evp and chief digital officer of Team Chemistry at WPP Group, of content and native’s potential. “It’s just another way of structuring your marketing plan. I predict brands are going to take on more of the role of content.
And unlike many other digital ad tactics, 67 percent of marketers are using content marketing to support brand engagement objectives.
“Standard digital ads have continued to focus on direct response while content marketing has allowed more creativity and engagement with the consumer – things further up the funnel like building brands and changing perception,” said Jason Kint, CEO of Digital Content Next.
Publishers share this enthusiasm: 61 percent say that content marketing is a “significant” or “very significant” component of their revenue models; 54 percent say the same of native advertising. Even more, 70 percent believe that native advertising has the most revenue growth potential over the next two years of the formats studied.
Of course, in order to make good on these projections, publishers must increase the amount of content and native placements they offer buyers. This raises the issue of scale, a challenge that 45 percent of brands, agencies and publishers say will be solved with the rise of automation technology.
The timing couldn’t be better: In last year’s State of the Industry report on the intersection of content and programmatic, 83 percent of respondents said that they expected content marketing to go programmatic by 2017.
Still, this might be putting the cart before the horse: Agencies, brands and publishers alike cited a lack of resources as the largest obstacle keeping them from doing even more content marketing and native advertising. Until these internal needs are met, these new, effective formats won’t be able to achieve their full potential.
For more about the industry’s definition of content marketing vs native advertising, the strategies behind each, and budgets (both present and future) on both sides, check out the full report here.
NOwnership, No Problem: Why Millennials Value Experiences Over Owning Things – Forbes
Blake does a great job in this post. Must read. Iove a generation that loves experience!
…this generation not only highly values experiences, but they are increasingly spending time and money on them: from concerts and social events to athletic pursuits, to cultural experiences and events of all kinds. For this group, happiness isn’t as focused on possessions or career status. Living a meaningful, happy life is about creating, sharing and capturing memories earned through experiences that span the spectrum of life’s opportunities
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