Goldman Sachs: China’s Online Sales Boom to Continue

Projected Online Sales in China

We have cataloged the supper growth of China’s online shopping for the last several years. One would think that the growth would naturally begin to slow. But according to projections by Goldman Sachs the growth will find its second wind – both online shoppers and online revenues will increase dramatically through 2020. Their explanation is the “ongoing expansion of the variety of goods available online; greater spending by consumers in smaller cities who are increasingly shopping online; and new ‘omnichannel’ initiatives that [combine online with offline bricks & mortar resources]”.  Source: Alizila.com

Top 10 Programmatic Ad Buyers

Top 10 Prog Brands

Examination of the top 10 programmatic advertisers shows their implementation is all over the map.  There is no consistent approach to the three options available: fully outsourced, fully in-house or a hybrid.  The majority are in some form of hybrid and that depends on the how deeply into technology the company’s marketing department is inclined to delve.  Netflix is the most committed.  Source: AdExchange

Credit Suisse: Chinese Consumer Spending Growth to Continue

CSRI Emerging Consumer Report 2017

Below are five takeaways from the seventh annual Emerging Consumer Survey conducted by Credit Suisse Research Institute’s (CSRI).  They reinforce the point that the Chinese consumer class will be the continuing story of growth well into the future.

  • A growing older population means more spending on healthcare
  • 40% of Chinese consumers intend to increase sports activity
  • 80% are practicing more healthy eating
  • Spending on large-ticket items outstrips spending on basics
  • Entertainment expenditures are up 50% since 2010

Each of these behaviors contribute to an expanding economy based on positive consumer expectations.  Source: Ecns.cn

Programmatic’s Unintended Consequences

Unattention

Some interesting thoughts about the dangers presented by programmatic buying from Nick Suckley, the co-founder of Agenda21, caught our attention.  The predicate he sets is as we move to more automated buying we allow into the process some negative consequences such as click fraud and content contextual issues where an ad can be placed next to objectionable content.  His solution is to assess your concern as an advertiser, and depending on your level of concern, either stop all activity until you resolve issues or, more positively, establish a “whitelist of approved/guaranteed inventory suppliers.”  This puts the human back into the process, which is what programmatic is supposed to limit.  Sounds like an idea for an independent, third party authenticator.  Source: CampaignUS

Business Confidence Soars China

Business Confidence Mar-17

Several stories in Reuter’s in the past week have noted the growth in manufacturing in Europe and China.  New numbers from the Chinese Bureau of Statistics are consistent with that reporting.  Chinese business confidence is at its highest point in the two years we have been watching.  The positive feelings are being driven by fast rising output, new orders, both domestic and export. The activity is also driving employment growth for the first time since May 2012.  Sources: Trading Economics; Bureau of Statistics, China

Care When Entering the World of Social Influencers

Influencers

Social Circle, a specialist in social media advertising, has recognized the some dangers to avoid when diving into the social sea.  Working with social media influencers requires…

Due Diligence: Don’t buy into a social influencers site before the nature of their content is undersood.  Your ad could end up next to content with which you do not want to be associated – anti-sementic, racist or politically unacceptable, etc.

Cultural Fit:  Especially when sponsoring an influencer, be certain to understand the creator and his/her attitudes – make sure their attitudes are consistent with your brand’s image.  It is not just about the size of the audience.

The Audience:  While you first must check the influencer, it is just as important to understand the audience that is attracted to the content.  This isn’t just the demographics in statistical terms; it is also the psychographics that count.  Are these the kind of people who might buy your product?

Define Rules: Working with an influencer should be more than just having your brand name dropped.  It should be deeper, a relationship in which you have role in developing appropriate content and one in which you set bounderies and retain finally veto power on anything associated with your brand.

Fair warning.

Source: The Drum

Chinese Business is Looking Up

Business Confidence Mar-17

February’s Manufacturing Purchase Index indicates growth for the eighth consecutive month driven by new orders, especially new export orders, which expanded the most in two and half years. The new orders resulted in increases in output, all of which has led to strong business confidence going forward.  Source: Trading Economics

Five Programmatic Issues To Be Resolved

Progammatic Dangers

  • Limiting programmatic to blast and grab advertising when there is no reason that truly creative approaches cannot be implemented in a programmatic setting.
  • Leaving programmatic out of the online video surge because of a misunderstanding of the content – it is not just cat video and dodgy content.
  • Ignoring adblocking verses trying to proactively encourage users to allow advertising to go through.
  • Confronting increasing barriers to conversion for consumers and the difficulty it causes when advertisers seek proper attribution.
  • Identifying customers “wherever they may appear, on whatever device” is a nightmare for targeting potential customers even beyond the attribution issue.

Source: State of Digital

Ad Fraud by Bot

Bot Driven

Advertising fraud costs advertisers $7.2 billion annually according to the Association of National Advertisers.  Therefore, understanding the nature of ad fraud is important in an effort to reduce its effect.  Of the 52% of web traffic that Imperva identifies as bot-driven, the majority, 29%, is of the harmful variety.  Not all bots are bad.  Some provide useful service – search engine crawlers and feed fetchers that refreshes mobile apps – are examples.

Bots can be identified by their super human abilities, “such as ‘watching’ thousands of videos in a single day.”  Resolution: Third party ad verification is the best, most objective way to protect brand safety. Networks and exchanges need to insert it into the process. Source: Dididay

Data-Driven or Data-Informed or Both

Data Driven-Informed

In his article for AdTech Daily, Andrew Perry, Managing Director UK at Adslot, described the subtle difference between data-driven and data-informed approaches to advertising.  Data-driven, by his definition, is programmatic buying – a process in which once pointed in a direction, the machines take over the buying process.

In contrast, data-informed is the analytical approach that enhances media planning and direct sales.  It is where return on investment is projected based on past performance.  It adds the human back into the equation. Perry insists it is as important as is the automation.  Source: AdTech Daily