Data in Demand

Eyeota logo

The Eyeota H1 2017 Index Report has several interesting insights into the US data demand in the advertising market.

 

  • Electronics & computers, finance, automotive sectors led on spending for audience data
  • Travel & leisure and automotive sectors led in demand for audience data relating to video advertising
  • Spending growth from Q1 to Q2 2017 was driven by the computers, software, B2B services & industries, financial institutions sectors
  • High demand was seen among B2B players from the electronics & computers, services & industries and finance sectors
  • Sociodemographic profiles grew 2.5x from Q1 to Q2 2017

The overall impression relayed by the Eyeota report is that the most ardent advertisers are all-in with data use. Kevin Tan, CEO, Eyeota commented that the evolving advertising marketplace puts “emphasis on data-driven marketing strategies [where] personalization plays a larger role in driving the effectiveness of campaigns, forcing brands and publishers alike to employ audience targeting strategies.”  Source: AdTech Daily

Mr. Xi Hits the Pause Button

Hot topics

 

When Xi Jinping speaks, people listen. The Chinese leader has solidified power so skillfully that he remains an admired figure while drawing in more control. That’s why his words matter. This content analysis of Chinese leadership speeches is reminiscent of graduate school classes in communications where speeches out of Soviet Union or Third Reich leaders are analyzed against historical events to see if there was foreshadowing.

Here it is clear what areas are of most interest to the Chinese leader today and how priorities have changed over time. Today the emphasis is on China as a power in the world and its security. Less important today is the need for market reform and opening Chinese society to the world. It is as though Mr Xi wants to hit the pause button in China’s economic evolution, which has consequences for business. Source: NY Times

Two-Pronged Data Marketing

Data Fork

Finding the best audience requires marketers to use a double-sided data approach: behavioral data and profile data.

In his article on the subject Richard Kidd, ‎VP, head of business development, EMEA at OpenX, defines behavioral data “as information relating to past consumer activity, and subsequent inferences about needs, wants, and future intent. It consists of multiple content-consumption data sources (such as site visits, video views, ad clicks, app usage, and social media interactions) blended to create a detailed view of what individual users do.”

Kidd contrasts profile data as being “based on tangible characteristics, such as consumer age, gender, ethnicity, and product ownership [often] drawn from more reliable sources – like voter registrations, censuses, and home-ownership records.”

While profile data is more accurate, it’s third-party data that’s hard to match up with trackable activity by specific people. There is the value of behavioral. Kidd notes, “Only 30-45% of cookies generated outside walled gardens – where users are authenticated by logins – can be successfully linked to offline profiles.”

In both cases accuracy and quality will improve results. His advice: To get better quality, know your partners and filter the data to eliminate people who, for example, have already purchased the product or service.  Source: Exchangewire.com

Chinese Consumer Confidence up a record 4.28%

Consumer Confidence - Oct 2017

 

The month-over-month increase in Chinese consumer confidence is highest since we have been watching it starting in January 2015. And it follows a positive monthly gain that was the fourth largest in that period. Together there have been five consecutive positive months. The current measure sits well above the 13-month average of 112.9. Chinese consumer exuberance seems to know no bounds, which is good for marketers.  Sources: Tradingeconomics.com; Nat’l Bureau of Statistics, China

Retail Sales in China Continues to Increase

China Retail Sales Oct-17

 

Earlier this week we saw that consumer prices were stable, which implied that consumer buying would continue unfettered. Now we report that China’s Retail Sales Growth has maintained its relentless climb for yet another month. We anticipate a slight bump when November numbers are available because of Single’s Day – the equivalent of Black Friday in the US – which occurs in the second week of the month. Sources: Trading Economics; National Bureau of Statistics of China

First-Price Auction Round Table

Round table

 

Chip Schenck, vp of programmatic sales and strategy, Meredith   “With second-price auctions, the buyer mentality is to win an auction because advertisers know that even if they bid the highest price, they will end up paying less. But with first-price auctions, media buyers pay based on what they believe an impression is worth — they have the incentive to lower their bids because they are supposed to pay the amount they bid – nobody wants to overpay for an impression.”

Paul Bannister, evp of strategy, CafeMedia   “Early testing of first-price auctions shows good signs, yielding better CPM win rates.  Moving cautiously.

Paul Bannister, evp of strategy, CafeMedia   “If everybody just uses Google AdX, then second-price would be fine, but header bidding destroys the waterfall structure. I like the idea that with first-price, advertisers can bid the true value of an impression and win the auction.”  Hasn’t tested it yet.

Jana Meron, vp of programmatic and data strategy, Business Insider    “The reason people are moving to first-price is because of transparency. Over time, first-price auctions will help buyers understand the true value of an impression.”

Source: Digiday

1.2 Million Chinese Tourists Chose the Last Frontier

US China Tourism

China’s traveling class has made itself felt throughout the west. Many hotels and retailers such as Harrods in London have made accommodations for Chinese customers. In the US, Chinese tourists are a common sight in Hawaii, up and down the west coast, in Las Vegas were they love to gamble and in New York where they like to buy real estate. Less well known is a surge of Chinese visitors to Alaska partially as the result the wide distribution in China of a film called “America Wild: National Parks Adventure.” According to the U.S. Department of Commerce’s National Travel and Tourism Office (NTTO), about 41% of the three million Chinese visitors to the US in 2016 went to see the aurora borealis and glaciers rather than the big, flashy, famous cities. Overall travel to the US from Chinese is expected to increase 90% by 2021. Source: China.org

Net Neutrality on the Block

FCC logo

On December 14th the FCC will be voting on whether or not to end net neutrality. A party-line vote will probably take it down and change basic rules of our game. Though several of the major internet carriers have said they will not start charging more for premium traffic or block competitive sites – the worst of the possibilities –the new rules will still result in change. Already the promise is looking shaky at Comcast.

Net neutrality “stimulates market competition, creating a high demand for online services like search engine optimization (SEO) and digital marketing. What we have is a constant and free-flowing source of internet competition — the finest of capitalism — which fuels a lucrative industry: content strategy, SEO, social media campaigning, pay-per-click services, and more.”

To a quickly evolving digital advertising space, this change promises to add yet another layer of complexity.  Source:DWN News

China’s Consumer Prices Tick Up Modestly

Consumer Prices Oct-17

 

 

Since the February low point for this 13-month period, prices have slowly worked their way back to approximately where they were last year at this time. Still the movements in either direction over this period have not been that extreme. To put it in perspective, China’s Consumer Price Index reached its highest at 128.4 in February 1989 and its lowest at 97.8 in April of 1999. Steady prices are a good thing for consumers because they engender a level of certainty in their lives, which keeps them buying – good for us.  Sources: Trading Economics; National Bureau of Statistics of China

Encouraging the Next Jack Ma

Schoolroom

Chinese Schools are changing from the bottom up. In 2010 the government released a 10-year educational reform plan that’s slowly seeping out to the masses. It is intended to change the massive Chinese education machine from a ridged, pressurized, rote memory challenge to an exploration of knowledge that is more prevalent in the best of western schools. It is the kind of learning environment that fosters creative thinkers.

To understand the change one must envision the classroom like the one we all experienced in which the teachers was in front of rows of students. But add to it the image one in which the highest ranked kids are in the front rows and the slower learners are in the back. Class rankings were posted. Imagine an alphabet of 10,000 characters, 3,500 of which must be committed to memory by middle school. It is hard to imagine a better way to squeeze the thrill of learning out of children and a way to demoralize the kids in the back of the room.

Today, as a result of the new approach, some schools are able to build up to 20% of their own curriculum. The eight hour school day, followed by tons of homework, are being peeled back and class sizes are being limited to 25.

The goal is long-term and strategic. Develop a sub-population of entrepreneurs. Change China from a country that follows orders to one in which some people are free to create new commerce. These changes are predictable and are welcome, still China is not a liberal democracy and it is moving with caution.  Source: New York Times