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Digital Advertising

ByApex Digital Media

How Digital Advertising Helped Trump Win the 2016 Election

 Digital Advertising for Obama - 2012

2008 Obama Ad

Here’s something that isn’t being talked about on Fox, CNN or MSNBC. Digital advertising, big data and retargeting have been key factors in winning the last several elections, including the most recent one.

Like it or not, traditional media is going the way of the dinosaur. Modern technology allows people to connect and consume information anywhere on handheld devices. It is now standard practice for the average person to browse the web, post on social media and watch TV shows & movies, all on their mobile devices. This gives marketers and political consultants a huge amount of personalization and targeting power. Make no mistake, this is a power can be used to make kings by those who wield it… Is this starting to sound like the opening to an episode of “Game of Thrones?”

Obama’s Team Won Twice Using Digital Advertising & Micro-targeting

President Obama had a top notch digital team and strategy. He was able to comfortably win in both 2008 and 2012 with the help of top notch digital talent. The Obama campaign employed a lot of young, intelligent and talented people. These people understood the digital landscape and how to leverage technology to micro-target voters across the country. By using modern digital advertising tools and data sets, they were able to target very specific political messaging to individual voters in different voting districts.

Hillary Clinton's Social Media

Hillary’s Twitter

The campaign also utilized a numerical scoring system for ranking voters. This system was created to gauge how likely a person was to vote and what types of issues would influence their decision. Armed with this information Obama’s digital marketing team could show these voters highly targeted ads that spoke to their politics. You can read the full story here.

This new digital ecosystem allowed Obama’s team to rely heavily on forms of micro-targeting enabled by the digital advertising ecosystem. This network of DSP’s, exchanges and data providers has been used by digital brand marketers since the early 2000’s but was foreign to politics. Political consultants can now match up voter registration info with online data points. Some examples being – what a person reads, buys, where they get their news online, etc. Paring this data with voter registration roles allows political campaigns to show invidvidual voters ads with specific messages that have been directly tailored to appeal to their views.

Jim Walsh of DSPolitical said the company has so far aggregated more than 600 million cookies — or tags on Internet user IP addresses that track movements online — and has worked to match them against lists of some 250 million voters in the United States.
This all is aimed at helping them determine how someone might vote and then reaching them wherever they go online.
Digital Advertising for Donald Trump 20116

Trump – Pence Ad

Trump Spent Big and Early on Digital

This report from Bloomberg in July 2016 outlines the details of Donald Trump’s campaign spending more than $8 million dollars on digital marketing around this time. Clinton’s team by comparison spent only a fraction of that amount, somewhere around $132,000.

Trump’s digital director Brad Parscale runs a small firm in Texas, Giles – Parscale. Parscale was initially employed by Trump for website design. As a result of that relationship Parscale was tapped to manage the campaign’s digital marketing efforts. He says the majority of the money given to the firm by the Trump campaign was used to pay for advertising costs.

Around Sept. as the election was entering it’s final 60 days, Trump was spending $40 million plus on digital advertising efforts. Sources close to the campaign say they spent heavily on Facebook & Twitter. In another surprisingly deft move the Trump campaign also utilized Internet radio through the “I Heart Radio” app. It’s not clear how much of their strategy involved the type of micro-targeting Obama’s team used but they clearly invested heavily in digital marketing efforts – and it paid off.

Hillary’s Digital Strategy Looked More Like a Traditional Media Buy

In researching the Clinton team’s digital approach I found no evidence of a digital targeting strategy to match what Obama’s team had in 2008 and 2012. Most of the headlines read “Clinton Reserves Digital Ad Time” which sounds like a traditional TV ad blitz but through digital channels.

It also looks as if Hillary’s campaign only made a really big push towards digital advertising near the end of the election. Their goal with this push was not to target policy messages to voters but instead to “appeal to millennials.” who we all know use social media… Am I right old people?

While millenials definitely use the internet, so does everyone else in 2016. It was short sighted to focus only on millenials when using digital media and the detailed methods of targeting it offers.

Digital Advertising for Hillary Clinton

Hillary Campaign Ad

Instead of mirroring Obama’s intense data driven approach, the Clinton team relied heavily on celebrity endorsements and a big media blast that ran on YouTube and other digital platforms. These ads primarily focused on controversial statements made by Donald Trump rather than pushing detailed political messages to different voters with different views depending on the parts of the country they live in.

Politicians Can No Longer Ignore Digital Advertising

This season neither candidate had a targeting strategy that rivaled what Obama had. Unfortunately for Clinton, Trump’s digital strategy was strong enough that simply throwing money at YouTube near the end of the campaign did not produce the results needed for her to take the white house.

It’s evident that from here on out anyone with political aspirations is going to need to have a great digital marketing team and strategy if they intend to win!

ByDustin Peterson

Goal Setting & Tracking [Digital Capitalist]

You’ve established your online presence. You have a great website, several social media pages and a well positioned digital brand. Now it’s time to set some goals and layout a plan to achieve them.

Setting a CPA Goal

Your goal is going to change depending on the nature of your business. For example, if you are a blog that specializes in news the goal is going to be driving page views, maybe subscriptions, etc. The end game in this situation is developing a large audience that will facilitate advertising dollars. On the other hand, if you’re trying to sell handmade jewelry through an e-commerce site your goal is not sheer volume of audience but audience that’s looking to buy handmade jewelry. As you can see the nature of your goals are variable based on what you want to accomplish.

We borrowed this graphic from a Google training deck because it’s the perfect summation of most online business models. Take a look at this chart and find the one that most closely matches what you are doing.

Common Digital Strategies

Different types of conversions

 

Using Industry Benchmarks

One of the things we run into quite frequently is unrealistic CPA goals. As an example, if you’re a doctor or a lawyer the price of clicks and leads is going to be higher for your service than say, someone selling a toaster. The reason for this is that the cost of the product or service is so much different and the pay off for converting a legal lead is much higher than it is for selling a $20 dollar toaster.

Still a lot of people will come to us and say “Hey I want to get leads for less than $1.00!” – And while this is possible, the old addage: “you get what you pay” for holds true in digital advertising. I would seriously question the quality of leads for under $1.00.

Use Industry Benchmarks as a Pricing Guide

So how can you vet the price of leads? Well Google AdWords is a great start and there are plenty of documented benchmarks for different industries. You can even use Google’s pricing to keep other vendors honest. The industry averages in Google should be relatively similar for most, if they are not I would do some digging.

One of my favorite sources of industry benchmark information is WordStream. Here are their benchmarks on Cost Per Action:

AdWords Industry Benchmarks - CPA

WordStream created this infographic

 

So how do you calculate your ad budget or your “Cost Per Acquisition” using this information? In order to keep it neat – We’ve put the steps into a numbered list for you, this is the step by step process we would use to find a good starting CPA goal.

  1. Look at industry benchmark data
  2. Consider on average, how many “actions” it takes to convert a user to a customer. How many calls do you get on average before one closes? How many email form submissions result in actual business or sales for you?
  3. Multiply the average amount of leads you need to get for a sale by average cost per action number: If I run an automotive website the average cost per action is $63.00 in search. I know that 1 in 10 of my inbound leads on average will result in a sale. so $63 x 10 = $6300. I know that I will likely need to spend $6300 to get a lead that closes. 
  4. Make sure that your cost is less than your net profit. If the only cars you have for sale are $10k $6300 might be a lot to spend to acquire that user. You may want to consider alternate routes that will result in better margin. On the other hand if your car’s are $50,000 – $150,000 models $6300 is not much to spend on that customer.

Google Analytics & Search Console Are Your Best Friend

Google offers everyone it’s basic analytics service for free. Attached to that is Google Search Console (formerly Webmaster Tools). Search console shows you first hand what keywords you’re ranking for in organic search as well as which ones are getting you traffic. The value of this tool cannot be overstated and it’s not incredibly difficult to set up and manage.

Analytics goes incredibly deep as well allowing you to create conversion events on your website and track users paths to those events. This can show you where you’re getting the most and best performing traffic from so that you can focus on developing those sources further. It has several other invaluable features as well, the ability to release site maps being an example.

Google Search Console

Search Console

 

Good Data, Strategy & Persistence Produces Results

If you build a solid plan with realistic goals and follow through with it you will see results. The quality and magnitude of those results depend on a multitude of variables, but that’s the fun part. Once you have the goals in place you can begin to look at data and make adjustments that will help you to yield the most from your efforts.

Click here to read - download "The DIgital Capitalist" e-Book

Click here to read – download “The Digital Capitalist” e-Book

ByDustin Peterson

Social Media Marketing – Quality vs. Quantity

With social media marketing on the rise there are a lot of agencies out there with different methods to help you grow your audience. Some of them are extremely effective and others are not. When we work with companies on social media audience strategy we always focus on quality. Getting quality at scale is possible, especially if you have a decent advertising budget. Getting quality in social media marketing without a large ad budget is also possible though, if you are consistent and stick to best practices.

One of the more popular method in recent years is buying likes or followers. There are a lot of different services out there that can in fact grow your audience to be very large rather quickly. This comes at a price though and I often question whether or not that price is worth it.

The reason is that buying followers or likes is not a good long term investment. There are a few reasons for this, but in the interest of time I’ll give you the 2 most important.

  1. Purchased followers are typically fake accounts created by media companies. These profile farms are composed of people who are paid to click, like or follow or sometimes can be completely automated.
  2. Social Media platforms like Facebook, Twitter & Instagram regularly purge their systems of phony accounts. One day you might buy a couple thousand followers for a great price. Then a week later all of those accounts will be deleted by the platform.

We discussed how the fraud ecosystem works at length in our video “The Wonderful World of Fake Traffic” a lot of the principals discussed here apply to social media.

For Businesses Social Media Marketing Should Be About Relationships

“Long-term relationship building is the cornerstone of any business and brand. Here, I think more than ever, organic and authentic conversation wins out over forced social media sharing through strategic plans and content management systems.”

The above statement from Jeremy Harris Lipshultz’s recent article at Huffington Post sums up the key to great long term, effective social media marketing. We tell our clients “think like a farmer” because a farmer has to get up and do a long list of things every day to keep their crops growing and produce a good harvest. Social Media marketing & content are no different. There are key things that you should be doing each and every day to help grow your audience.

So while you can “cheat” and buy followers or likes the value in that is greatly diminished. The numbers are impressive on the surface but once you look past that you will clearly see they are not real people. For a business if you’re going to invest in real social media marketing, you will want quality over quantity. Real, genuine conversation and interaction between potential and existing customers will win the day even if it comes in small amounts.

ByDustin Peterson

Understanding Programmatic Advertising

There’s been a lot of buzz around programmatic advertising over the past 3 – 4 years. But what exactly is programmatic advertising? The simple definition is that it is an automated method of buying, selling or fulfilling advertising. Apparently it’s caught on because it already makes up more than half of US digital display advertising spend.

Aside from just simple banner advertising, programmatic has begun to rapidly expand in areas such as video and mobile.

From Digital Ad Networks to Programmatic Advertising Exchanges

A few years ago if a digital media buyer wanted to run a branded display campaign they would go to an ad network that had tags running on a long list of websites. The buyer would usually procure a list of these sites and pay a CPM (Cost Per Mille or Cost Per 1,000 views to be accurate) to run their advertising on these sites.

But nowadays buyers are purchasing by the impression. What this means is that CPM’s have increased but rather than buying bulk page views, advertisers are now able to buy large targeted data-sets through programmatic exchanges.

programmatic-openrtb-ecosystem

programmatic open rtb system

 

It’s quite simple, many ad networks already run tags on thousands of publisher exchanges. These ad networks sell this inventory through programmatic vendors that in turn buy and sell these impressions in a real time auction to the highest bidder. It sounds complicated, but it’s a simple auction just like one you would go to in order to get art or antiques. The difference is that these auctions happen in fractions of a second via programmatic DSP’s or Demand Side Platforms. Just like at a regular auction the winner of these light speed auctions gets their ad shown to the user.

Based on recent data compiled by AdRoll. Last year, the bulk of US marketers, (62%), automated 10% to 50% of their digital advertising budget. Just about one third of those marketers also said they invested 50% or more of their digital ad budgets programmatically, up from 7% in 2013.

Other Benefits of Programmatic Advertising

Programmatic is visibly efficient. All data points to this fact. This method of advertising has an unmatched ability to pair audience data with digital content to target the right users with the right message at the right time. This has made digital media buying more cost effective and improved the amount of spend for web publishers.

While programmatic advertising still has issues related to fraud and viewability (cross-device visibility has been an issue) there is a healthy conversation being had about them. The current benefits of these ad buys also far outweigh the risks if you’re a brand or business looking to really get yourself in front of a highly targeted audience demographic online.

Whatever the case, keep an eye on programmatic to keep evolving and improving in the weeks and months to come.

(source: http://www.emarketer.com/Article/US-Advertisers-Investing-Heavily-Programmatic-Obstacles-Remain)

ByDustin Peterson

Snapchat Dominates SXSW Without a Presence and 6 Other Marketing Stats

According to AdWeek: 
The ephemeral app didn’t throw a South by Southwest Interactive party, hire a popular band or even give away cool gadgets—it didn’t have a branded presence at the Austin, Texas, festival. Instead, it was a topic of conversation on nearly every marketing panel and was constantly used by attendees to document their SXSW experiences. In fact, it garnered more impressions on Twitter than any other brand, coming in with 192 million from March 6 through March 16, per Sysomos. Indeed, all Snapchat had to do to win SXSW 2016 was just be Snapchat.

AdWeek went on to cite Snapchat as the most talked about brand at the whole conference and was actually used by a lot of attendees to document their experience.

AdWeek has this and 6 other interesting marketing stats from the past week here.

 

ByDustin Peterson

The Art of Social Customer Service

In today’s digital ecosystem, social media is a great way to drive awareness about your brand or business. It’s also a great way to engage with existing or prospective customers but a lot of companies are starting to discover that it’s also a great way to handle customer service.

This can be a bad thing for some companies. Take the example of the case of Hassan Syed who’s father lost his luggage on British Airways. He spent $1,000 on sponsored tweets to make sure that as many people as possible saw his distaste for British Airways handling of his problem. Unfortunately for BA the onslaught started afterhours while no one was manning their social media accounts. So for 8 long hours they allowed this problem to fester and grow without any response. By the time they were back at the office Hassan’s tweets had already been seen by over 75,000 people.

Knowing that social media is critical for into the modern age for customer service you need to be thoughtful and creative about how you represent your business online and that includes the customer service aspect. Here are a 5 quick tips to help you ace customer service on social media channels such as Twitter and Facebook.

Don’t Leave Complaints Unchecked

If someone’s complaining about your brand or business on social media it’s important to engage them right away. The longer you let them complain and get noticed the more difficult the issue will be to resolve. Responding quickly is key but you also want to do your best to drive the conversation off social media so you can talk person to person. Move the conversation to a forum where the public can’t see every last comment that is made.

If you are an international business it might be wise to have someone manning your accounts at all hours. As mentioned in the scenario above with British Airways, overseas complaints could be after hours for you and cause you to miss an opportunity to shape the conversation in a way that has the least amount of damage to your brand.

Show Some Empathy

Just because you are working on a computer through a social media channel doesn’t mean you shouldn’t act like a human being. When a customer comes to you with a problem make sure that you express interest and show that you care about the problem. If customers see that you recognize the problem and are working to fix it they feel that you’re listening to them. Responding to these issues with the motive to understand and assist will definitely help you resolve the issue and gain trust.

Surprise Your Customers

Not everyone who goes on social media to complain about a brand believes that they’re going to get a response. A lot of people will tweet or post something just to vent about a bad experience that they had. If you have a brand manager who is on top of things this can be used to your advantage by quickly responding to customer complaints. If a customer quickly receives a thoughtful response to a complaint that they didn’t think anyone was listening to, it can quickly turn their attitude from combative to friendly.

Respond Quickly

You’re probably seeing a common theme through a lot of these pointers – time is of the essence. If it takes you a couple days or a week to respond to a customer complaint it looks like your company is either lazy and slow or that you don’t care. Slow response time also makes it look like you’re not really paying attention to what’s going on or worse, avoiding conversations about your brand altogether. The longer that complaint lingers without response the worse you look regardless of what you say. So be quick on the draw.

Turn Critics Into Brand Advocates

If you are able to engage your customers and fix these situations quickly you will have a happy customer who can be turned into an advocate for your brand. They’ll respond with gratitude and if you’re lucky, maybe even delete the original complaint messages. People talk and by solving the problem you will have a customer who goes out and tells others that they are satisfied with the actions you took to quickly resolve their complaint. Most people who complain about a brand on social media are just looking for a quick solution to their problem, so if you can offer that to them and you’re going to win.

To sum, be open honest and quick to respond. Understanding these principles will ensure that social customer service helps to drive new customers to your brand.

(source: https://www.upwork.com/hiring/customer-support/social-customer-service/)

ByApex Digital Media

Using Social Media to Drive New Business

Social Media has grown into a force to be reckoned with. To give you an idea as to how fast things are moving – in 1997 the Internet reached 50 million users. Facebook on its own gained over 100 million users from January 2009 – January 2010. So with numbers like that, there is obviously a large audience there to go after.

Social Media profiles are not only another place to showcase your business and interact with your customers, they also work as directory listings that help to get your business more visibility in organic search.

Facebook is the top of the food chain for social networks but as technology evolves a lot of other notable platforms are popping up with a wealth of potential for business opportunities. Instagram, Pinterest and SnapChat are all places that are currently offering advertising of some sort but are relatively newer platforms than the mainstays such as Facebook & Twitter (to be clear, Facebook now owns Instagram)

Developing a Social Media Strategy

First and foremost you want to figure out what platforms are most likely to have your prospects. A platform like Instagram is absolutely perfect for photographers, but Twitter might be a more appropriate place for finding new customers if you run a Software business. This isn’t to say you shouldn’t have profiles on both – just that depending on the type of business you run you will want to spend more of your time on particular platforms.

The best way to figure this out is by asking yourself a few simple questions about your business and the nature of it.

  1. Why are you doing this? Decide what the primary goal of your social networking strategy is. Are you trying to network better? Showcase new products? Drive sign-ups for a mailing list? Having clear goals is important when formulating a strategy.
  2. Who is your target audience? If you’re a mechanic trying to generate business on Pinterest might not be the best option. That’s not to say it won’t develop anything for you but a platform like Facebook is much more effective for an automotive business as you can target people in your local area who may have an interest in automotive.
  3. Which platforms are the most important for my business? If you have a staff that can man your profiles or you can afford to hire an agency like Apex Digital Media to manage social media strategy for you, you’re in luck. If not, you should probably pick a couple of platforms that best suit you, or you could spread yourself thin. Going days without any visible activity is bad for growth and reflects poorly among followers.
  4. Security. What type of trust level do you have established at your company? Will all of your employees have access to your social media accounts? Remember that a small mistake on social can be extremely detrimental to business. If one of your employees posts something offensive it could end up snowballing into a PR nightmare. Make sure you take security of your accounts seriously.
  5. Finally, the tone and voice of your social media presence is important. Does your company already have a public representative that usually handles speeches, press, etc.? It’s important to have a voice that represents your business well and does not seem robotic or contrived. Remember, “People buy from other people, not from other companies”

Don’t Be Too “Salesy” on Social Media

Social Media Marketing isn’t as much about directly selling your product as it is about engaging prospective customers and winning their trust. The goal of a community-based social media platforms is to provide a platform for an open, honest conversation about whatever the subject at hand is.

apex-rand-fishkin-inspirational

Rand Fishkin Gets It…

 

If you look closely at the brands with the most successful profiles and communities you will see that they are the ones who interact with users most often and post content directly related to their brand. Facebook’s Fan Page is a great example of how you should market your company through social media platforms. It acts as an upgraded user profile for brands, companies, and organizations to be as involved as the users, and has plenty of tools to enable informed decisions. As users become ‘fans’ of your page, all of your activity appears in their News Feed each time they log on. There’s also a feature called the “Insights tool”, which allows you to analyze page views, the demographics of your fans, and the number of people who view (or stop viewing) your News Feed posts. Facebook has continued to add new and improved features for businesses to make better use of their user data.

If you simply open up a profile and begin spamming your users with coupons and deals for your product or service you won’t go very far. Providing real value to your users in the form of expertise and news about your industry and brand is how you win.

This is a brief primer on social media strategy but if you need additional assistance or expertise don’t hesitate to reach out to us directly!

(source: http://www.inc.com/guides/using-social-networking-sites.html)

ByApex Digital Media

Grammy Artists and Brands Win Big on Social Media

The Grammys have become deeply intertwined with technology over the past couple years. Social Media has created an environment where viewers can interact live with their favorite artists and other fans during the event. There are always a breaking news items that happen at these events and overall it just makes the event more fun and interactive. It becomes an experience that is more shared by fans than viewed. With that let’s go through some of the night’s winners on social media both artists and brands.

Artist Engagement During the Grammys

According to Engagement Labs 2016 rankings of grammy-nominated artists, Wiz Khalifa was the big winner on Facebook. Scoring the most likes and new fans. The Weeknd was number one on Twitter due to his use of the official Grammy’s Twitter account to show gratitude to fans new and old, thanking everyone for their support. Best New Artist nominee Tori Kelly also scored high on Twitter. On Instagram Charlie Puth dominated with the highest score according to them based on a lot of shares and likes of his Instagram photos. Taylor Swift gained the most new followers on Twitter and during the show frequently utilized her social media channels to post her reactions to winning awards.

grammy artists social

Grammy Artists Social Media

 

Brand Engagement During the Grammys

In addition to artists there were a lot of brand engagement opportunities. People magazine ranked first on Facebook they having the most active user base of all sponsors. The magaizne posted a lot leading up to the show and also had frequent live updates on their social channels. Hilton hotels had the highest follower growth of the night, continually posting live images of artists on the red carpet with the Hilton logo / watermark. Hyundai had the best brand score on Twitter mainly from people responding to and retweeting them. Gucci used Twitter to post high fashion images of their brand from the red carpet. One particularly noticable shot of Florence Welch (Florence and the Machine) wearing one of their dresses.

Grammy Sponsors Social

Grammy Sponsors Social

These days brand integration with music is much more common place because of the way that the music industry works and artist can’t really sell records anymore so these days sponsorship money and these types of social media integrations are where a lot of artists make their money

(source: http://www.benzinga.com/pressreleases/16/02/m6299772/the-social-media-grammy-goes-to-artists-the-weeknd-and-taylor-swift-and)
(source: http://www.adweek.com/news/television/these-brands-and-artists-won-grammys-social-media-169666)

ByApex Digital Media

Social Media & E-Commerce vs. Traditional Retail

A lot of modern retailers are still trying to carve out their niche in the age of online commerce. Brands like Abercrombie, J-Crew & Gap are rapidly losing foot traffic and marketshare to a growing youth demographic who wants to buy and share online via platforms like Instagram, Pinterest & Snapchat.

Modern teens are spending more time with their limited budgets at stores like Zara or Forever 21 according to a recent report by Business Insider. They are also much more likely to share images of their finds on social channels with their network of friends and relatives.

social-commerce

Social Commerce

Social image platforms like Instagram & Pinterest are drastically affecting the way all consumers view fashion. Modern women are likely to use an app like Pinterest to pin “dream outfits” and wardrobes they are interested in. Low priced, low overhead online fashion outlets are equipped to sell the items that compose these dream outfits and as a result retailers who used to get this customer are losing them to online outlets.

Before the internet, the average consumer didn’t have access to higher level fashion. Most retail brands did well just selling their staple products. Now with instant access to a variety of styles and buying options, it’s much easier for a woman to assemble an outfit that looks great and doesn’t cost a fortune. Customers have access to the types of things they see on runways and can order it at the click of a button.

It’s for this reason that companies like Zara who have well conceived and efficient supply chains are taking over. They can respond to fashion trends at the drop of a hat and churn out new products quickly.

two young women taking selfie with mobile phone

women taking selfie with mobile phone

Then their supply chain helps to keep lead times shorter. Since they don’t have to commit all their stock in advance of the season and are manufacturing during the season.

A traditional retailer like the Gap is just not equipped to operate in this manner. They would have to completely rethink their business models to compete in a similar manner. Instead, they end up having to discount outdated fashions to get rid of excess inventory that failed to sell well. The discounting leads to declining sales and overall devaluation of their brand.

One retail chain, Banana Republic thinks they have figured out a way to bridge the gap. For 2016’s NYC Fashion Week they will allow customers to buy newly launched clothes online as soon as they debut on the runway.

What’s clear, is that retailers of all types, not only fashion need to find ways to adjust to an ever changing market. Social Media is also becoming much more important as a tool of networking with the people who like your brand and turning them into advocates for it. The need to spend zillions of dollars on advertising can be compensated for when you have thousands of your customers showcasing your products and prices on their Instagram & Tinder feeds.

A recent study conducted by Ernst & Young found that teens (affectionately called “Generation Z”) have

very high expectations for consumers and this can help retailers to set the bar higher which in turn affects their entire customer base.

The lesson is that by seeking to please the young generation retailers can greatly improve their business model and return their brand to a state of profitability.

(source: http://www.businessinsider.com/social-media-is-killing-traditional-retailers-2016-2)

ByApex Digital Media

Programmatic Radio Advertising in 2016

Close your eyes and imagine the targeting capabilities of programmatic advertising on radio – now open them, surprise! You now have them.

Spotify CRO Jeff Levick announced in a recent interview with AdExchanger that: “2015 was the year we started opening up, which was huge for us, and 2016 is the year we’re going to be fully open, We’re going to keep expanding and investing heavily in the programmatic channel.”

Back in November 2015, Spotify opened up it’s programmatic radio advertising offering to a limited audience. It’s a private marketplace where brands can leverage Spotify’s first party data to target users in a variety of ways. You can target by genre, by playlist, and also by subscriber data like DMA, age & gender.

For now, the programmatic functionality of the program is limited only to display and video ads but audio advertising is soon to follow. The IAB (Internet Advertising Bureau) recently set guidelines for Internet Radio Advertising so the stage is set and companies like Spotify couldn’t be happier.

The excitement is visible in quotes like this one from former Rubicon Project vet and current head of programmatic at Spotify – Jana Jakovljevic: “For the first time ever there is going to be an audio standard for programmatic. It’s completely nascent right now, but once the standard is agreed upon, it won’t take long for tech vendors, SSPs and DSPs to adopt the standard and start running audio alongside their other formats.”

Programmatic Radio Advertising Enables Extremely Detailed Targeting

According to Spotify, their average user listens to around 148 minutes of music on Spotify each day. If you can serve an ad every 20 – 30 mins to roughly 50 / 70 million users at any given time… you do the math.

One of the most appealing things to advertisers about a platform like Spotify though is the amount of data available to target with. More than 80% of Spotify’s users tune in on a mobile device and the total number of monthly active users was estimated at around 100 million at the end of 2015.

For more, You can read the full interview with Jeff Levick and Jana Jakovljevic at AdExchanger.