Mobile Proximity Marketing in France

Mobile Proximity Marketing in France

Location-based data at your fingertips 

THE FRENCH MOBILE LANDSCAPE

LenouvelEconomist run two months ago as a headline, that we moved on to the « Mobile moment ». In fact, Google announced last September that mobile queries had exceeded those made via desktop over the summer 2017 in France.

French actors are clearly lagging behind in terms of brands leveraging mobile to increase conversion but the wind is shifting rapidly and they are on their way to catch up. The main updates and fields of improvement are around increasing the page load times, investing in accelerated Mobile Pages provided by Google, adopting mobile first contents, etc.
On this matter, according to Thomas Husson, analyst at Forrester, this revolution is not only about « a change in mobile usage » but more widely, it is an « evolution of consumers’ states of mind » who want to receive services in real time to satisfy their demands whenever they feel the need for it. In terms of improving customer experience and enabling brand loyalty, he adds that brands should properly perform upstream measures to evaluate the full value of mobile driving in-store traffic, as 85% to 90% of the transactions are still made offline. That is why collecting contextual data link to consumers is key in order to anticipate their needs.

 

Another key milestone coming this year is the launch of Google’s mobile first index which will impact your overall mobile marketing strategy.Will it become your new SEO Bible? In any case, it will change the whole search result experience giving full credit to the mobile version of your site to rank it on Google. You will need more than ever to understand your users’ behaviour and preferences in order to engage them truly with mobile optimized content and optimized website to increase your mobile conversion rate.

 MOBILE USAGE AND SMS CAMPAIGNS

According to the 2018 Baromobile study released by OMD (Omnicom Media Group) together with the expert in drive-to-store S4M, the level of consciousness around « Data connexion » has arised and consumers are using more and more mobile :

 

Furthermore, according to the 2016 Study made by the Mobile Marketing Association together with L’ARCEP, «  80% of the mobile users receiving a commercial SMS declare themself interested by its content», whereas «  20% among them have already clicked on a promotional link ». So we can ask ourself :

  • Which sms strategies brands are leveraging off to push their in-store conversion ?

For locale acquisition campaign, SMS geofencing is a circumvented tool. Since 2015 in France the commercialization of SMS in client acquisition is rising as retailers and brands want to grow their SMS database and increase conversion. According to a 2016 study, a tremendous open rate reaching 95% (of which 90% within 4 minutes – study from MMA – Arcep) with a memorization rate of 60% (INSEE 2016).

  • What simple content to push ? 

Flash sales notifications, discounts with flash codes,link redirecting toward a landing page, videos. You can as well personalize your sms by creating custom SENDER Id (or OADC) but remember 160 characters maximum and the STOP mention included to be privacy-friendly.

  • How to use geofencing in your SMS geotargeting techniques ?

Retailers are using geolocation as a real life « cookie » to drive traffic in store thanks to GPS, beacons or wifi technologies.  One of the condition using geofencing properly before sending any commercial offer is that you must first get the permission from a mobile phone number to text message them. It can be done through an  SMS keyword sent to an SMS code : « shoes » to 3638 or an optin obtained through a previous campaign. Once customers give their permission to share their location, you will be able to set your campaign and choose for instance a radius of 20km (the maximum distance) around the postal address of potential clients or a radius of 1km around your retail store to reach them.

  • What’s the main advantage of SMS geotargeting ?

It provide you with a high precision target based on past and real time results and, thanks to optimization algorythms, you will be able in the future to consistently improve your targeting audience predicting their needs, their purchase intents while analysing POS traffic and factors influencing them.

Some french specialist in geo profiling and geolocation for retailers like Ubudu  in the tourism industry, can help you building your proximity marketing strategy by providing you with high-precision geolocation features (up to 10cm !). You will be able to send push notification according to their location, send them personalized welcome message, enable customers to avoid lining in store and enable them finding products and services as fast as possible to provide them unprecedent experiences !

  • Toward an omichannel strategy ?

Click and Mortar and pure players businesses are leveraging consistently the mobile experience to fuel their omnichannel strategy by multiplying acquisition campaigns and activations. Sephora is a good example of a makeup store retailer using sms within its 360° « Wonder » Christmas campaign and whom has been recently rewarded for it (read the dedicated article here).

 DRIVE TO STORE STRATEGIES & BUSINESS CASES

Mobile is key when we think of cross-canal and ROPOiste strategies because acccording to the 2016 study of L’Observatoire du ROPO², on average out of 100 visits in a retailer store (during a period of 3 months), 46% of visitors are cross canal (visiting the website and the store) and conversion rate made via mobile in France is reaching 56 %. That is why, brands should perform various drive to store activations such as Drive to store RTB, Facebook Offers or SMS.

Lets focus on mobile display advertising wich offer huge potential in terms of activating local customer :
→ You can stimulate real time visits in store by targeting precisely your customer catchment area. Plateforms such as Adsquare, which is a mobile first data exchange, allow you to broadcast custom offers based on contextual information (open hours, weather, events and dedicated locations), within where you can adjust the radius of your reach and add advertisings redirecting to Google Map.
→ One insightful business case is the partnership made between the french adtech startup Databerries (now Teemo) and Intersport around its « Real life targeting » solution. It includes a SDK (a set of programming tools for your app), integrating easily geolocation data from 40 app publishers (including Marmiton, L’équipe). For Intersport, a « visit » is equal to a 15 minute visit in store. Thanks to Databerries, Intersport confirms that for one euro invested, it take back 4 to 6 euros margin (study available here)
In terms of your overall customer journey, what could be the next steps once you have attracted potential customers in-store ? Leveraging in real-time your data collected is essential :

2/ During the visits :

  • In-store wifi : accessing the free In-Store wifi access to identify your visitors and activate marketing trigger (push notifications, trigger content on wi-fi connection landing page) to collect data and new optins
  • Geofencing local notification

3/ Post-visits : Behavioral retargeting
By collecting  of individual data visits and sending :
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  • SMS / Email offering complementary/lookalike products
  • SMS/Email to encourage revisiting the store with a welcome back message

 

 DRIVE TO STORE STRATEGIES & BUSINESS CASES

Transforming your store into a « Data Generator » and enhancing your database plateform in order to serve your drive to store and omnichannel strategy is the way to procede in order to boost your sales. Retailers are in this way tending to adopt the « Cookie less » targeting model thanks to the unique identifiers.

→ A great variety of first party location data is now at your disposal like the Mobile ID (MAC Address), Mobile Number and optin thanks to the synchronisation between a device having a unique identifier and emitters like wifi sensors, IoT signals, GPS, beacons. You will be therefore able to cross historical location data, detailed behavioral pattern, as well as intentionist data within the same place. Adtech technologies are rightly improving their capacities offering now Location-smart SDKs. On the media buying plateform side (DSP, DMP, trading desks), french actors are doing more and more partnerships to access millions of unique ID, combine it with online identifiers and geolocation data. For instance Vectaury is coupling its DSP with its SDK to propose ultra qualified segmented audience and thanks to different partnerships with Mondadori, Madvertise,  they have access to more than 10 millions located user data that they propose to publishers to maximise their conversion.

«  Mobility data » as it is called, has become therefore a new source of information and is used as a proxy for second and third party engagement data (read the article here).
For instance, Fidzup can provide you a clear measurement of your Drive-to-store ROI by performing behavioral targeting in and out of the store (buying intention, catchment area, competitors customers) and is able to collecte granular data coming from Store, section, fitting rooms, floor, cash registers. (To know more about Fidzup : here).

However, in order to ensure clean and high qualitative data origin, your mobile advertisers must cross-referencing location data through different sources. Examples would be using GPS, phone operators, beacons or specific algorythms and detect any possible ad fraud in order to collect compliant and qualitative actionable data. On the compliance part, the french mobile actor Vectaury is offering a new optin since the beginning of 2018 : a « Geo-transparent optin »banner to simplify the consent collection of mobile users and perform anonymized profiling (read article here).
As a matter of fact, the overall marketing need to collect contextual data is becoming widespread and confirmed by the last trends in the Adtech market. Since the beginning of the year 2018, the first Adtech sector attracting investments in France is the Drive- to- store sector. French actors like Teemo (Ex Databerries), Mozoo,  Vectaury or Fidzup are leveraging offline market opportunies given the fact that this market is not under the Google and Facebook dominance. For instance, the French Actor Tabmo is trying to make the usage of mobile DSP more accessible to agencies accompanying brand thanks to its creation module : « GPstore (drive to store),  MScroll (canvas type) and the SlideMotion (read the article here).

It is no more a question of proximity advertising but about the unicity of the location data that lead to new marketing strategies : Online to offline attribution, retargeting and re-engagement. What is important to keep in mind is to leverage on your CRM data and – onboarding thanks to  cross-device data combination. According to Ray Kingman, CEO, Semcasting «  By using IP, location and device matching, marketers can leverage mobile to execute deterministic attribution with 70%-90% coverage matching across all channels and platforms – both online and offline».

New marketing metrics are therefore emerging to mesure the online ad impact on offline sales with KPIs such as :  visit rate,  Cost-per-Visit (CPV), visit direction, number of visits, areas visited location intelligence:

To go further on the metrics subject, earlier at the Mobile World Congress hold in Barcelona (from the 26st of Feb until the 1st of March), the company Augury took the opportunity to publicize its first complete app ecosystem intelligence solution by launching «  Active Insights »which combines cross-app data and provide full cross device reports . The Ogury mobile data collection plateform has data from more than 400 million users with audience segments based on the mobile users app usage. It give marketer competitors insights, how to deal with churn rate and  how to segment their target to deploy mobile ad targeting then outside the apps which hit an unprecedent scale in terms of insights.

FURTHER CONSIDERATIONS

After casting a wide net around mobile strategies.. what if blockchain was coming into play ? Mobiquity Networks, a mobile  location data intelligence provider adopted a blockchain layer into its marketing strategy. Its plateform gathers ID, IDFA (Apple Identifier) with anonymized location data (like footfall traffic in-store) via third-party permission-based mobile apps, primarily shopping apps and combined with other data in order to be sold to clients. Adding a hybrid blockchain layer to your database can help your business dealing with your data separation problems providing structures to guide your data pointers and breakdown each « event » within your blockchain together with IDs source written into it. Blockchain is therefore an extra key consideration to not underestimated in the digital marketing and advertising data management landscape.

To conclude, drive-to-store strategies on the marketing as not yet entered into a mature stage has its overall impact measurement (whatever the device used) is still not entirely manage by measurement companies. The latter are trying to provide real time insights to measure the entire online and near/in store customer journey that will allow brand to perform hyper locale marketing campaigns. The advent of contactless mobile payments is another factor that is going to reinforce the practice of real time targeted actions as well as analysis based on these new consumer behaviour shopping habits.

Therefore, the « mobile-ization  » amongst retailers and pure players brands is on its way in France, blending greater ease and convenience of shopping experience for mobile users and customers looking for greater on the go experiences.

SOURCES

  1. https://www.lenouveleconomiste.fr/lesdossiers/mobile-moment-62588/ 
  2. http://www.cbnews.fr/etudes/etude-baromobile-la-data-au-coeur-a1040631
  3. https://www.smartinsights.com/mobile-marketing/mobile-marketing-analytics/mobile-marketing-statistics/
  4. https://www.google.fr/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwik8_iywPbZAhVJZlAKHX1bAx8QFggvMAE&url=http%3A%2F%2Fwww.cbnews.fr%2Fmarques%2Fla-poste-devoile-les-laureats-de-la-septieme-edition-des-trophees-du-media-courrier-a1037642&usg=AOvVaw2gh6S4fZIaJFS-YBvxU6W-
  5. https://www.journaldunet.com/ebusiness/publicite/1207018-adtech-les-business-qui-excitent-les-investisseurs/

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Digital Advertising ​Faced its Ultimate Moment of Truth

A year ago, Procter & Gamble’s chief brand officer Marc Pritchard gave a one-year ultimatum to its digital advertising partners stipulating that they clean up their practices and play by P&G’s rules or risk losing lucrative 2018 money from the US largest advertiser.

Let’s see how P&G’s redefines its digital strategy.

A Lack of Transparency

In January 2017, P&G chief brand officer Marc Pritchard caused a stir in the digital when he announced he will review all with digital platforms in the coming year. A significant part of the $2.4 billion marketing annual budget is at stake.

P&G asked for the implementation of the single standard for ads viewability as defined by the Media Rating Council, IAB and Mobile Marketing Association along with accredited third-party verification, more transparent contracts and additional ads fraud prevention. From Bank of America, Unilever and more added their voice to P&G’s for demanding more transparency. According to the latest IAB annual report, the measurement will be a key focus for 57 percent of marketers surveyed.

Fox and Henhouse

During his speech at the IAB’s annual leadership meeting in Ft. Lauderdale, Pritchard said that more third-party verification is needed regarding of dollars that are spent on digital advertising. P&G’s competitors are spending billions without asking for it he was said by a top executive from a major tech company.

It may be true, he replied but

[easy-tweet tweet=”« If all of your friends jumped off a cliff, would you jump too?»” user=”https://twitter.com/cyrlerol” hashtags=”#digitaladvertising”]

Google and Facebook are actually doing their own self-reporting for what defines a viewable ad, it is a little like letting the « fox guard the henhouse » he concluded.

 

A Quarter for Every Digital Dollar

The question of transparency is crucial as P&G along with other companies do not have its money back on digital spendings. In October, at the annual Conference in Orlando ANA’s president and CEO Bob Liodice revealed that 259 companies on the 2016 Fortune 500 list had declining revenues.

The problem? « It boils down to a lack of effective marketer leadership, » said Bob Liodice. « As leaders, we, as an industry, have refused to make the tough calls—calls that would take us out of the cesspool of suboptimum growth. For example, we as leaders should not accept this byzantine, non-transparent, super complex digital media supply chain. No one can understand it. »

He continued: « Yet we keep feeding the beast by pouring incredible sums of money into this unproductive, unmanageable abyss. Remarkably, we keep doing so even though we know that only 25 percent of every digital dollar reaches the consumer. … [that] represents more than $20 billion in marketing waste, inefficiency and ineffectiveness. » The ANA’s response to this lack of growth issue is a 12 point guide.

 

Red Alert and a Call

Brand safety is another point, not raised by Marc Pritchard in his January’s speech, but that is crucial for P&G and other FMCG companies. The converse grew with ads appearing on controversial websites like Breitbart through Facebook ad networks or programmatic-advertising. In March CMOs either stopped or pulled out YouTube campaigns after their ads ran next to objectionable content. For instance, P&G cut between $100 million and $140 million in digital ads spendings in March.

Facebook addressed these issues quickly and released solutions for the Dmexco in Germany. As a result, brands could see whether their ads run on a controversial website instead of having to make an educated guess.  The post-campaign tool is also reportedly plugged into Instant Articles and in-stream videos that users post on social media.

Red alert, Facebook VP of global marketing solutions Carolyn Everson sent a clear sign that the biggest digital players in the world are paying close attention to Pritchard’s message: « There is nothing more important than marketers trusting and believing that the advertising ecosystem is transparent, accountable and safe ».

 

P&G’s New Digital Strategy 

In October, Pritchard said the company is « about two-thirds complete on these steps today and should be largely finished by the end of 2017. ». The number of media partners was reduced to 200 « trusted and proven-clean media partners to cut off the bot-laden long tail » Pritchard said.

« The data now shows that the average ad-viewing time can be as low as 1.7 seconds, pretty much a blink of an eye, with only 20 percent of ads viewed for more than two seconds, the minimum standard, » he said. « We stopped wasting money on 30-second ads [for digital], and we’re designing ads to work in two seconds.».

The company also found it was « reaching too few people too many times with too many ads, » Pritchard said. « Excess frequency is a massive source of waste, and it really annoys consumers. No wonder ad blockers are growing 20 percent a year. I mean, how many times does a person need to see a toilet paper ad to get the point? ». « We’re also working with e-commerce players like Amazon and Alibaba to use unique ID data to reach consumers closer to when they’re ready to buy, » Pritchard said. « This is accelerating our $3 billion e-commerce business and cutting waste by 20 percent. But most important, it’s creating a better consumer ad.».

 

Hit Me Again

John Wanamaker, a proponent ad expert and a pioneer in marketing, is also known for one of his quotes: « Half the money I spend on advertising is wasted; the trouble is I don’t know which half. ». Actually, the return on investment in digital advertising is deceptive for advertisers like P&G, as the ratio is a quarter to one. The message sent by his chief brand officer is clear.

 

Brand safety, ad fraud, ad blocking, viewability, verification and value are all important issues in their own right, but it concerns me that as an industry we seem to see them each with tunnel vision, jumping from one to the next, rather than seeing them as connected and part of a holistic digital landscape » says Unilever CM O Keith Weed.

This is where digital advertising should be heading in the future.

 

Source: Tanya Dua from UK Business insider

Mobile Proximity Marketing in France

Is interactive video the future of video advertising?

 Interactive video for video advertising

Source: Pexels.com

eMarketer expects a 16,55% growth to $15.42 billion in Digital Video ad Spendings in 2018 and according to Cisco, 80% of all web traffic will come from video by 2019. In this context of massive online video content, brands are struggling to attract their audience’s attention. The need for unique qualitative and creative content is tremendous and interactive video seems to be a great opportunity for marketers to raise engagement and reach customers in an effective way.

While we already discussed the rise of video advertising in a previous article, Raptmedia recently identified that 64% of consumers are likely to spend more time watching video if they can participate.

 

What are Interactive Videos?

An interactive video is a digital video a user can interact with through clicks, touches and taps in order to have a customized experience, to access more information and to reveal their choices to you, the marketer. It’s a powerful way to raise engagement, improve learning and retention and to generate data about your customers. 92% of the businesses who have tried interactive videos think that it’s an effective business tool.

 

Interactive Video increases engagement through active viewing

Interactive videos allow the shift from passive viewing to active viewing of videos and drives engagement and higher retention rates by allowing viewers to choose what content is relevant to them in order to have a customized video journey.

 

Interactive videos put the user first

 

By giving to the user the control over the content he is viewing, he is more invested and engaged in it. It requires to think user first and video second while producing your video but is a way to collect data and insight about your customers, just like we do with website analytics. interactive videos is a way to understand audience preferences, behaviors and measure the ROI of your campaigns.

 

The different types of interactive videos

Interactive hotspots.

 

Interactive hotspots allow users to access to more information in your video without being redirected to another page. With a simple click, the content is superimposed over the video which is paused. Interactive hotspots may, for example, help viewers to find the nearest shop, have access to stock inventory, specific coupons or to subscribe to a newsletter.

For an example, watch Decathlon’s video

The cons of this type of interaction, is that they are not personalized and that they do not collect data and insights about the viewer and neither allow a personalized video journey.

Personalized content

Interactive video allows you to provide to your viewers unique videos by embedding user data. Thanks to the customized and relevant content, users feel like the video is designed for them. If you want to promote a service for your company, you can for example display text like Hello [John], you recently subscribed a [healthcare contract] for your [daughter Sarah], but do you know that you can manage it online? Click here to connect.), in your video, the text between brackets being personalized with your data.

Nevertheless, the user still doesn’t have the control over the content with this kind of personalization.

User experience video.

User experience video is a two-way interaction. Through interactions, users can choose their experience and content and find information they need at their own pace. It’s the best way to collect data and insights about your customers and a good way to optimize the click-through-rate of your Call-To-Action. It can be used for interactive short-films, product selection, product training, learning, interactive promotional experience or interactive recruitment experience as it has been done by Deloitte. [http://www.raptmedia.com/customers/deloitte/]

Endless possibilities

Combining interactive hotspots, personalized content and video user experience, the combinations permitted by interactive videos are endless. It’s an effective way for your brand to stand out on the Internet. Moreover, while producing interactive videos used to be costly and complex, some actors like AdWays[4] are developing online studios that easily allow you to personalize your videos and to adapt the content through the time without producing a new video and thus, save money.

 

It’s just the beginning of interactive videos for video advertising.

Romain WILLERVAL

Mobile Proximity Marketing in France

Programmatic Marketing for Dummies

You might have heard about Programmatic Marketing buzz these last years but never really understood what it really means. Don’t worry you are not the only one. Even marketers are not all aware of this trending topic. According to the IAB Europe, WARC and Appnexus’s study called «Why and How programmatic is emerging as key to real-time marketing success», 50% of media buyers confess they hardly understand programmatic.

Indeed it is a complex domain requiring a specialized technological knowledge and masters a disconcerting new vocabulary.

Nevertheless, you should begin to take an interest in this phenomenon because you have not heard the last of this. Indeed spending in this sector reached 21 millions of dollars in the world, an increase of 50% in 2014 compared to the year prior. Experts forecast another 56% rise in 2017 in France.

 

1. Definition

Its sophistication makes this topic opaque and difficult to explain. Many marketers and researchers tried to give a short and simple definition, but none caught my attention as much as Ameet Ranadive’s one:
“At a high level, Programmatic Marketing is the practice of implementing an automated set of business rules to efficiently target your most valuable customers and prospects with personalized ads.”

  • The automation allows marketers to decrease delays induced by a human chain link in the process in order to be more reactive.
  • An efficient targeting will “eliminate wasted impressions and clicks. Thus, you only show ads to users who have intent, and who are likely to take the desired action” (Ameet Ranadive, 2013).
  • Eventually, customization increases the potential that the customer does the desired action by showing him the perfect customized ad, based on data you know about him and his last searches on the Internet for example.

2. Glossary

To understand how the programmatic marketing is working, you first have to be aware and understand the multitude of actors, notions, and tools that take place in the process.
Below, these are the main words to know:

  • Publishers: have some advertisings spaces to sell on its website
  • Media buyers / Advertisers: buy advertisings spaces to promote its brand or its offer
  • Ad Inventory: It means a publisher’s package of advertisings spaces available for sale. It lists spaces’ locations, forms, and sizes.
  • Ad Exchange: automated marketplaces where buyers and publishers purchase and sell online advertising spaces.
  • Demand-Side Platform (DSP): Platform that allows buyers to manage different Ad Exchanges from a single interface and that bid automatically and in real-time to get advertisings spaces or impressions.
  • Supply-Side Platform (SSP): Platform that operates in the same way than DSP but used by publishers. SSPs gather thousands of Ad Inventories.
  • An impression: when an ad is displayed on a screen.

These definitions do not go in many details. They are, of course, more complex but it will allow you to understand the basis of the following process and get an overall picture of it.

3. How does it work ?

Let’s imagine you are a company that wants to use programmatic techniques to improve and optimize results and budget of your digital campaigns.
You (or your agency if you subcontract this part) will use a DSP to specify the settings and the budget of your campaign.
Then, the DSP will automatically bid for offers of advertising spaces or impressions, in real-time.
To do that, it will connect to an Ad Exchange, which is also, on the other side, connected to various SSP.
Among those SSP and attached inventory ads, DSP will choose spaces that fit most the buyer’s demands.
Once the space is chosen, the ad will instantly be displayed on the user’s screen.
Of course, all these steps happened in few milliseconds.

Programmatic journey

Three types of programmatic exist:

The Real Time Bidding (RTB)

It is quite similar to Google Adwords, except that you do not target keywords requests but advertising spaces, “thus Adwords was the first programmatic solution, without proclaiming itself as such at that time” (Julien-Henri Maurice, 2015).
RTB auctions take place on an Ad Exchange platform most of the time.

If you are a publisher :

  • You allow any buyer to participate in auctions in real-time (even though you may specify a list of undesirables buyers).
  • This is an interesting option if you have a big volume of advertisings spaces on your website, especially for spaces offering low audiences.
  • This is the less profitable form of programmatic publicity.
  • You don’t know who are the buyers.
  • You can only establish a floor price.

If you are a buyer:

  • You allow any publisher to buy.
  • This is the less expensive option.
  • You do not know who you are buying to, the too many transactions inhibit their tracking.

This lack of tracking with the RTB brought some fake publishers to sell ad spaces that did not exist. These frauds contributed to deteriorating RTB’s image and led to the development of the Direct programming.

Direct Programming

The direct programming has been rapidly adopted by agencies that wanted high-quality advertisings spaces to their clients.
As its name suggests, transaction is performed directly. Buyers/Agencies and publishers are in direct contact.

The main difference with RTB and Direct programming is the degree of transparency and traceability. Both parties know with who they deal.

Private auction sales

The publisher narrows the participation to the auction only to a selected buyers group, on the basis of diverse criteria.

The advantage for the publisher is the high degree of transparency and the possibility to choose which ad will be displayed on its website.
For the buyer, interests are less intuitive. Indeed floor prices are usually higher than with the RTB.

The programmatic is already starting to change the way we think and work and its future seems even more exciting. Olivier Monferran, CRM & Digital Manager at Opel France, sees the programmatic as the first step towards the one-to-one marketing Grail.
So stay connected, future is coming.

Mobile Proximity Marketing in France

The role of social media in the product launch process

Social media has become something crucial for consumers. People use social media constantly, and as time goes by they give more importance to it. They use it to stay in touch with friends and family, to keep up with the news and everything that is happing around the world, but more now than ever, they use it to find out more about the products they want to buy and the companies selling them.

Just as people and consumers in general place more importance to what they see on social media,
brands are more aware of the powerful tool these channels represent, and therefore they have given more and more weight to social networks, not only when it comes to their communication efforts, but also by embedding social media into their business strategy.

With at least 2.3 billion people around the world actively using social media it is no surprise that when it comes to product launches, marketers are flocking to these channels because that is where their customers are.
In fact, so is the power of social media that it has already superpassed the influence of other traditional channels when it comes to this kind of initiatives. According to a study recently published by the agency Five by Five, brands are already prioritizing social media over any other kind of media -even television- to launch campaigns.

The numbers prove it:

social-media-product-launch

Not surprisingly, 74% of marketers say they give priority to social media in their launch campaigns, meaning for them it is more important to position their products in the digital space rather than invest large amounts of money on traditional media.

Sales promotion ranked second among the most important channels with 55% and email campaigns came in third with 53%. TV advertising, on the other hand, only ranked sixth with 36%.

Why social media is so important:

TV’s influence decreasing

There are several reasons why social media has become such a crucial tool for marketers and why they are taking distance from traditional channels and TV advertising. One of these reasons is consumer behavior and the fact that only 6% of consumers identified TV as a key factor for them when it came to buying new products. Therefore, if people are not paying too much attention to TV ads, why keep on investing on those?

Social listening to support NPD

On the other hand, brands’ presence in social media is on the rise, marketers want to know what people think about their brands, what they like, what they are expecting to see. Social listening is a great way to know the market, and 64% of the people surveyed said they use social listening to support new product development. Furthermore, many companies take advantage of social media to beta test their products and gain feedback to tweak them before fully launching.

Laser sharp targeting

Finally, with social media marketers can actually reach prospective clients with even more precision than before and for less. Almost every social media platform offers the option of market targeting to help companies reach the specific segments that maybe they wouldn’t reach using mass advertising.

Social media has undoubtedly changed the face of advertising for many companies, and using these platforms can either make or break a product launch campaign, but when used correctly, the results are really worth the effort.

References:
Image by Hans Vivek under Creative Commons Zero license
2017 Launch Marketing Report. Five by Five