CPG Highest Adspend Increases: Social, Digital Video — Part 3

Be sure to read Part One Broadcast Prime Up and Part Two CPG Increasing Digital and OOHamp160of this seriesAlthough all of digital grew 29 for the first three quarters of 2015 yearoveryear YOY the fastest growth in this overall sector came from social up 78 over that period Digital video pure play is up 50 while TV network digital is down 6 However looking at it quarter by quarter TV network digital was down 12 for each of the first two quarters of 2015 and then was up 7 YOY for the third quarter so the trend for that subcategory is currently up again And it39s the third largest category with 91 of total CPG digital dollarsWhat do these numbers tell us CPG advertisers have reason to believe that social is working for them There have been some excellent ROI studies done by Facebook and Datalogix which however did not include TV so there could have been some accidental misattribution Nevertheless anyone who does ROI studies always grows revenues the two go hand in hand We would expect to see even better research in the future and greater gains for social especially native social amp8212 meaning content that looks natural in social media pages because it is actually social in nature and yet at the same time builds a specific brand bond This is where we see the greatest future strength of socialThe same would seem to be true of digital video We know that Eyeview Digital has been doing excellent studies of the ROI of digital video and programmatic televisionamp160and we expect to see even more of that in the future from industry leaders and increasingly from everybody This is my explanation for why CPG which is very research oriented is doing what it is doingFaster than digital video there is another subcategory called Other which is growing at 71 almost as fast as social What39s in there quotOtherquot is all of the most experimental and inherently hardtoclassify ideas including native social In 2006 my colleagues and I published the results of 28 studies showing the high ROI and persuasion effects of what we called True Sponsorship which is today being called native Ten years is about average for salient findings to be fully activated by the industryNative has an enormous future not only in digital but in TV where there will be a predictable return to the roots of TV True Sponsorship including entertainment content developed by advertisers and agencies No form of ad blocking can touch this form of persuasive communication It does not trigger mental antibodies It is transformative communication where the brand expresses genuine and desirable qualities that its customers share and so absorb the information in a positive wayWhy the temporary dip in TV network digital in the first half of 2015 I was baffled so I asked a couple of people I trust and one of them amp8212 Turner Chief Research Officer Howard Shimmel amp8212 had the answer right away The Sochi Olympics and World Cup in 2014 drove digital video to new heights in those quarters of 2014 making 2015 seem like a declineWhy is print digital growing at 16 vs the digital norm of 29 during this period It looks to be a reverse halo effect of the association with quotold mediaquotamp160The prevailing view of advertisers is that they cannot increase adspend in order to take advantage of the newest media they must for some reason keep the total steady the usual reason given being the economy and in CPG private label However 40 of the time a brand is not spending enough money as proven by over 400 BehaviorScan heavyup testsMy feeling is this If there is ROI evidence that the current creative is working we are probably not spending enough So what is needed by media being unfairly punished by an attitude of quotMediaAgeismquot is to use ROI measurement intelligently to prove that the optimal mix happens to include a lot of techoldster media and that the way to run a business is to not let prejudicial images get in the way of maximizing profit and growthWord to the wise Don39t rob Peter to pay Paul Taking money out of established media to fund the testing of new media does not make logical sense Test media alone and in combination to find what works in terms of ROI and then test whether and where increased adspend results in higher ROI and growthFinally Pure Play Internet Radio is up 44 suggesting that CPG advertisers are seeing some good sales results they can attribute to that media typeThe two largest spend categories are 1 Ad NetworkAd Exchange up 31 and 406 of CPG digital dollars and 2 Pure Play amp8212 ContentSearch up 27 and 274 of CPG digital dollarsSo the general pattern of more dispersion and less concentration on any one subsector of digital is what we are seeing in CPG amp8212 along with an increasing willingness to test outside the box and be ready to activate further based on hard ROI resultsThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaVillagecom MyersBizNet Inc management or associated bloggers

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CPG Highest Adspend Increases: Social, Digital Video — Part 3

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Bill Harvey

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CPG Highest Adspend Increases: Social, Digital Video — Part 3

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