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

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

Programmatic Buying to Increase 31% by 2019

Digital Ad Projections

 

The newest study by eMarketer projects 2019 digital display advertising to reach $54.7 billion, a 31% increase over the 2017 projection. More impressive is the expected increase of 40% in programmatic ad buying as a percentage of the total in the same time frame.

A subset of these numbers reveals that 80% of programmatic ad spending in 2019 is expected to be chasing mobile placements. In addition, 77% of video ad spending will be pushed through programmatically.

The lesson: In spite of issues like transparency and ad fraud, programmatic is likely to continue its growth. Still, it’s vital that the issues of transparency and fraud be dealt with in order for the projections to be realized.  Source: eMarketer

415 Million Chinese Millennial Consumers

Chinese Millennials

The 415 million Chinese millennials may be the most sought after consumer population in the world.  They are active and hungry for more – perfect consumers.

Five Point Profile:

  • The oldest of this population, those born in the late 1980s have seen China grow from a poor country to a prosperous country while the youngest have never known austerity – they want it all, now.
  • Another area of departure between the older and younger generations is the contrast between national pride and cultural identity verses the broad interest in the world, which makes them travelers and students abroad.
  • On the whole Chinese millennials are mobile, their lives are bound up in their smartphones – from purchasing to paying, it is all carried in their pockets.
  • Sharing is also a common part of their lives.  In the west it’s Uber and AirBnB, among Chinese millennials one shares a rental in order to have luxury experiences or start a business.
  • Chinese millennials are no longer the naïve consumers of China’s pre-millennial generations. Still their national pride drives a desire for local products, which means that for imported brands to succeed they need to be integrated into the local culture by using local brand ambassadors and social media in the Chinese way.

Source: ZeitGuide

A New Chinese Giant Emerges

Online-toOffline eCommerce in China

 

Any category of eCommerce sales that is averaging year-over-year growth of 36% is something that needs to be recognized. Online-to-offline sales in China is it. At this rate, ordering food for pick-up or ordering tickets to a concert online will cross the $100 billion mark by 2019.  And there is a company called Meituan-Dianping that is in the center of this growth.  A new round of funding places the company’s valuation at $30 billion “making it the fourth most valuable startup in the world by CB Insights’ accounting, behind only Uber, China-based ride-hailing giant Didi Chuxing and smartphone manufacturer Xiaomi.”  The new funding was led by Tencent, one of China’s big three (Baidu, Alibaba and Tencent).  Source: eMarketer

Projection: Online to Beat In-Store Holiday Purchasing

Holiday Buying patterns

 

For the first time Deloitte’s 2017 Holiday Retail Survey of 5,000 US consumers projects online buying will out-pace in-store purchasing this holiday season.  No wonder so many malls are closing.  The number is even more notable with the reality that much of the in-store purchasing will come after online searching and comparing – evidence of a quickly shifting consumer purchasing patterns.  Bricks and mortar retailers must find ways to live in the new world.  Companies like Walmart have acquired a number of online retailers in their effort to add a new revenue line to their balance sheets to replace lower revenue from their core business.

This business adjustment parallels that which the newspaper business is going through. While many newspapers have closed others, like the New York Times, have expanded their online presence and established pay walls to replace lower revenue in their print additions.  The Times is a case study for adjusting to the new digital reality.  The company’s third quarter reporting shows an 11% increase in digital advertising revenue and a 46% increase in digital subscriptions, which together represent 35% of total Q3 revenue that was up 6% overall.  Source: MarketingLand, NY Times, mPoint analysis

 

2018’s Eight Ad Futures

Crystal Ball

  1. Omni-platform and omni-device contact is the future of advertising. One user, many channels.
  2. Users will do more online research before purchasing online or offline.
  3. Mobile use will continue to increase.
  4. Amazon-like personalization will spread
  5. More fulfillment options will proliferate – same day delivery, online purchase, in-store pick-up, etc.
  6. Big data and analytics will drive margin improvement.
  7. Messenger apps and chatbots will use social media to deliver marketing messages and handle simple customer service issues.
  8. Voice purchases via smartphone or home smart speaker is the next big thing. Maybe.

Source: DMN

China Drives Electric Cars

Electric Cars in China

A combination of China’s desire to become a leader in technology and its pressing need to reduce its dark cloud of air pollution motivates its government to encourage alternative fueled cars. In China, the government is not a cheerleader, rather it’s a rule maker and new rules from China are having broad effects on worldwide auto industry planning. The size of the market draws western car makers to follow the lead set by the Chinese government because all of them have some manufacturing capabilities in China and those factories are subject to the rule-making. Beyond that, if you are developing battery technology for China, you will naturally want to amortize the cost across the world. Hence, you see companies from GM to BMW to Toyota going electric ahead of demand in their local markets. Concerns about technology transfer loom.  Source: NY Times