Welcome to the 13th edition of Ovative’s marketing/tech news digest – where we hope to keep you up to date on all things new and exciting within Marketing, Measurement and Technology.
Always informative, sometimes entertaining. Enjoy.
Fodder for the water cooler: This guy just jumped 25,000 feet out of a plane, without a parachute and lived! Oh, did we forget to tell you that this was VOLUNTARY?! Insane. Absolutely, insane.
Facebook Gets Strong Majority of World’s Social Ad Spend? | eMarketer | July 25, 2016
Quick pitch: Dolla’ Dolla bill y’all! Facebook is killing it by taking home more than 2/3rds of worldwide social media ad revenues this year.
Now I want the details: Sometimes all this talk about Facebook makes us think nostalgically about MySpace (we’re kidding …) The social network can be officially described as a behemoth as it becomes the world’s largest recipient of social media advertising dollars raking in an estimated $22.37 billion in net ad revenues this year. Ad momentum is coming from an increase in video ads and dynamic ads. The first for broad awareness, the second for relevant targeted ads driving lower funnel activities. Lest we forget, Facebook also has it’s messenger app and WhatsApp, both of which it hasn’t monetized yet. It remains to be seen the importance of these two pieces as marketing vehicles.
What we’re thinking: Relationship status? Single and ready to mingle. There’s a reason advertising dollars are flocking to the ‘book. On average, people spend nearly an hour everyday scrolling through Facebook, Instagram or chatting on messenger. Not only are users engaged, they also have willingly supplied their demographic information, making targeting customers with relevant ads easy peasy, lemon squeezy. Our perspective is targeted social is a no-brainer. Make sure it’s a part of your marketing strategy.
Google Credits Mobile and Video Investments for Strong Revenue Growth | AdExchanger | July 28, 2016
Quick pitch: Earnings’ season is upon us! Run for your lives!!! Just kidding, it’s been pretty great for Alphabet.
Now I want the details: Besides the fact that Google’s parent company makes me think about that amazing cereal from my youth (with ‘mallos, obviously), there’s some other deliciousness going on at the place that made “google” a verb. The company cleaned up with $21.5 billion in revenue during Q2, a 21% jump year-over-year. Growth was due to investments in mobile and video. Google touted it’s value stems from grouping search, android and machine learning under the same bucket – something other companies aren’t doing. Another bright spot is YouTube, whose recommendation system is driven by machine learning fed by mobile search data. Long story short? Users are watching more videos for longer viewing sessions which equals more money for Google. Nothing’s ever perfect and while Google’s “moonshot” business doubled in revenue to $185 million, it’s reported losses were up to $859 million. Another measure of health, CPC’s, were also down 7%, but paid clicks grew by 30%.
What we’re thinking: There’s something to be said about the strength of both Google and Facebook. For Google, the weight and significance they’re giving to mobile is directly effecting their top line growth. For both Facebook and Google, increased engagement means more marketing dollars i.e. ads in your Facebook news feed or the ads played before the Trailer for Masterminds. This makes us think of two things. First, Google’s focus on mobile is a reminder that customers are browsing on multiple devices, expecting a consistent experience, regardless of what device they’re using. Secondly, while Facebook and Google are making money through increased ad dollars, are these ad dollars going to work for marketers? Both of these points are reasons why having a robust measurement system in place is valuable and can help you get the most out of your media budget.
Pinterest Poaches Snapchat Exec for New Ad Measurement Role | AdWeek | July 27, 2016
Quick pitch: Gunnard Johnson, former head of quantitative ads research at Snapchat just created a new Pinterest board called “how to dress for a new job.”
Now I want the details: While we’re not sure if Gunnard is going to be pinning his work outfits, we do know that he’s going to work to build out Pinterest’s data programs. Marketers are looking for Pinterest to show them the ROI of creating & buying pins. While a recent study showed that people are 12% more likely to buy a product after seeing a promoted pin, Johnson was presumably hired to fill in some more of the details. Pinterest has already been creating advancements for marketers by launching look-alike targeting and retargeting in June. Johnson’s hire comes at a critical point in both the life of Pinterest and Snapchat who is in the process of building out its own ad-measurement program.
What we’re thinking: Fighting over talent is just one sign that points to the importance of building out robust measurement capabilities at both Pinterest and Snapchat. Neither company is publically traded, but if Facebook and Google are any indication (which we think they are) being able to quantify and report meaningful ROI for clients through measurement capabilities is going to be a big deal. While one-off measurement solutions have their value, we’ll continue to be huge proponents of an integrated marketing measurement solution. Pinterest, Snapchat, Google, Facebook, and others don’t live in a vacuum – the trick is going to be able to measure their value in context of one another.
SPOILER ALERT: While some people were finishing up “War and Peace,” (i.e. Nate) others (i.e. Claire) were watching Green Bay Packers Quarterback, Aaron Rodger’s brother “win” the Bachelorette last night. We’re taking bets on how long this one lasts …
Ovative/group is a measurement and activation agency focused on activating enterprise value through marketing, measurement, and technology services. Through our 20+ related engagements over the past three years in this space, we’ve observed some common themes that, when considered, greatly increase the probability of building solutions that lead to lasting capabilities rather than shiny pennies few are willing to adopt.
Our clients span multiple industries, including retail, healthcare, education, CPG, and hospitality; for companies with sales that range from $250M to $100B. We engage with our clients both as advisors and as outsourced service providers; as a neutral measurement partner or as an end-to-end measurement and activation solution provider.