Has the needle swung too far?

Has the needle swung too far?The perils of putting all your eggs in a digital marketing basket

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The digital seduction

Weve all been seduced by digital right?FasterCheaperInfinitely Measurable

And our leadership teams have gradually followed suitMore budget moved to digitalEmergence of specialist digital marketing roles

Spend on Internet advertising is growing at 14% a year.And in 2016 global Internet advertising revenue will surpass TV advertising.

its the cool stuff!

* Source: PwCs Global Entertainment and Media Outlook 2016-2020.

Marketers have rejoiced that we can now go to our leaders and board with measurable results gone are the days of debating whether a campaign worked or not!2

But are we paying enough attention?Fraud long has been known to be one of the most troublesome issues on the Internet, with digital advertising increasingly one of its prime victims. The Association of National Advertisers (ANA) in late 2015 estimated that marketers will waste as much as $7 billion globally in 2016, buying online advertisements that people do not see.

Whilst Im a huge digital advocate, Im increasingly concerned that too many marketers have the blinkers on. 3

36% of traffic is non-humanThe Good News

Non-Human Traffic (NHT) is generally low on premium publisher sites.

Global real-time bidding exchanges have some of the worst rates of NHT.

The IAB estimates 36% of internet traffic is non-human. Scary stat!

There is good non-human traffic within this number.Google SpidersPrice Spy bots that find you the best priceTheta have a bot to enter their prize draw!

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More than half of digital ads worldwide still dont have the opportunity to be seenRobots, ad fraud and ads below the fold all contribute to viewability rates of around a dismal 45%*.Source - What you need to know about ad viewability, cmo.com.au, 21 April 2016

More than half the worlds digital ads dont have the opportunity to be seen.

This means your budget is being wasted on impressions that are never seen by real people.

Programmatic is more susceptible to ad fraud, as are high value video ads.

So these are the bad bots theyre clicking on your adsvisiting your site, putting items in your shopping baskets, filling out forms

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TOP TIPS FOR Avoiding non-human trafficDiscuss viewability targets (cost-per-viewable impression) rather than just impressions with your media agency.

Pay careful attention to your Google AnalyticsWhat location is your traffic coming from?Who are your top 20 referral sites?Get assistance to remove non-human traffic from your analytics.

Ensure your adwords and social settings are highly targeted to the audience youre trying to reach.

Agencies are increasingly coming under pressure, with some advertisers now seeking guaranteed minimum viewability levels rather than the traditional cost per impression measure.6

The scary facts about ad blocking

Source: AD BLOCKERS: A CHANGE IN POWER IN THE DIGITAL ADVERTISING ECOSYSTEM? First Digital, October 2015A recent report by Pagefair states that more than 200M people globally use ad blockers and they estimate the cost of ad blocking will be US $41.4B in 2016.

Who has an ad-blocker installed on one or more of your devices? Please tell us on slido.

Its risen sharply in the last 2 years. The global estimate is 200M people globally.

In NZ the estimate for ad-blocking penetration is up to 22%. My buddy who runs a tech forum in NZ tells me hes over 40%.

Many of you will have noticed the explosion of branded content recently as we try and find ways to out-wit the blockers.7

Young males are most likely to use ad blockers

Source: Signal.co

So young men in the 18-29 age group are most likely to be using ad-blockers.

We also know that people on high incomes are more likely to use ad blockers, as are particular industry verticals, like gaming and technology.8

Mobile ad blocking rose 90% last year 1 in 5 smartphone users are now using ad blocking software (420 million people worldwide).

They are especially popular in emerging markets like China (159M), India (122M), and Indonesia (38M). Source: theverge.com, May 2016

And while it used to be a desk top issue its increasingly becoming a mobile issue as people become more protective of their screen space.

Ad blocking is especially prevalent in emerging markets like China and India but the drift here is inevitable.

And the reason China and India are blocking the ads are using more data and taking longer to load than the news content itself.9

Ad blocking could be viewed as a call to creativity for the digital industry

- Julie Cupitt, Manager, Deloitte Digital

Put nicely by Deloitte Digital

So come on guys, we can do better with our digital advertising!

Just because you can do annoying takeovers, doesnt mean you should consider the customer experience on the end of that device.10

Whats driving this growth in ad blocking?

Video Its Not a News Story!

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Does traditional media still have a role to play?

So with that in mind, does traditional media still have a role to play?12

Consider the growing 45+ audience in NZ

News media is a key influencer for planning & informing purchase decisions for the Over 45s

Of course! And in some audience segments more than others.

We recently partnered with Colmar on a NZ study of the Over 45s demographic. Surveyed over 1,500 people and found they still have a love for traditional media.

And whats more Newspapers and TV are still central to planning purchases for this segment.

Especially in cars, events and grocery.

They do have their digital devices, but their buying behaviour is driven from traditional media.13

print newspapers influence purchase decisions

This week!

Obsessed with Instagram and Snapchat millennials

But theres a whole wealthy generation of over 45s . With a disposable spend in excess of $23B a year in NZ.

If you havent got a product or service that targets this audience then you might be missing an opportunity.14

Snacking vs indulging

Lets consider the occasion for choosing a print or digital edition of the news.

They serve two very different needs.

Onlines a quick check FOMO. The waiting room, the traffic lights, first thing in the morning, last thing at night.

Print is much more about quiet relaxation delving into the opinion pieces and long form content.

Consider frame of mind15

The newspaper plays a very important role in relaxation

We live in busy times, so we thought this relaxation theme was interesting

Its time to myself its like having a do not disturb sign up

My husband and I have breakfast in bed every Saturday with the newspaper. Its the highlight of my week.

High levels of engagement and emotional attachment.16

Regional kiwis are more likely to be influenced by newspapersSource: Nielsen CMI Fused Q1 15 Q4 15 Feb TV/Online. Base all people 25 69 living outside Auckland/Wellington/Christchurch

Next up we partnered with Nielsen to study Regional NZ. We did a deep dive into New Plymouth, BOP and Otago to uncover how they felt about media.

The newspaper in regional NZ is still really influential when people are deciding where to buy. They love the local connection.

Considerably more influential than TV and Radio. But Ill let them tell you in their own words 17

Regional new Zealanders in their own words

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advertising - Annoying or useful?Newspaper advertising is the most useful and less annoying. TV advertising is the most annoying and advertising through social media is the least useful for people living in the regions.Source: Nielsen, online survey, sample n= 876Base: All People aged 25-69 years

In a recent study we asked Regional New Zealanders what advertising they found useful and what they found annoying.

Lot of talk about social media today.

Interesting that its seen as the least useful

Just because youre shopping for yoga pants doesnt mean you necessarily want to lose 20 pounds in 2 weeks!

People like Control no control on line it interrupts.

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#MADEFROMREMAINS

In June this year we ran the Day of Influence.

Initiative to support the NZ Fire Service to get more smoke alarms into homes.

Shameless plug for FCB20

Day of influence resultsThe results of this campaign completely surpassed our expectations, with smoke alarm sales increasing by a whopping 2900% in the week following the campaign. Every working smoke alarm saves lives so were delighted with the results and will continue to leverage the power of news media for future campaigns.- Caroline Rosanowski, External Communications Manager, NZ Fire Service

So this was a great example of combining both traditional and digital news media to drive purchase and behaviour.

We used local families with real local fires so it really resonated with kiwis around NZ.

The full case study is available on our website if youd like to read more.21

5 key takeaways

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key takeaway #1Embrace digital advertising with your eyes wide open challenge your agencies and publishers on viewability and what theyre doing to screen out non-human traffic.

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Key takeaway #2Scrutinise your analytics seek assistance if necessary to remove non-human traffic that could be skewing your results.

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Key takeaway #3Remember to include traditional media in the mix particularly when youre targeting the Over 45s and Regional New Zealand (not everybody is like you).

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Key takeaway #4Consider the occasion that your advertising is interrupting is your audience snacking or indulging - and tailor your creative accordingly.

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Key takeaway #5Keep an eye on the ad-blocking issue and experiment with branded content to ensure youre reaching the eye balls youre after.

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Thank you Diane HannayHead of Marketing, News Worksnewsworksnz.co.nz

nz.linkedin.com/in/dianehannay

@dianehannay

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