Not since the advent of the television ad in 1941 has the potential for new ad formats been so great. The emergence of digital platforms is enabling marketers to experiment with a number of new ad formats, each of which could revolutionize marketing as we know it. Throughout 2014 we have been highlighting the most effective techniques being broadly adopted.  Here in Part VII of our series we address Mobile ads.

Part VII:  Mobile Ads and the Recency Phenomenon

Everyone these days has a mobile device.  Or two.  Or three.  This rapid rise in adoption isn’t restricted to the developed world.  While a sad commentary on the lack of sanitation infrastructure in less developed countries, a UN report indicating that more people globally own a mobile phone than have access to a flush toilet is an astonishing testament to mobile penetration.  More vital than the fact that six out of every seven people in the world owns a mobile phone is that we take them nearly everywhere we go.

With the introduction of the iPhone in 2007 spurring the transition of mobile devices from a communication tool to a platform for digesting content, advertising inevitably followed to allow monetization of content.  As smart phone penetration built, so did mobile ad revenues.  In fact, ever since the Interactive Advertising Bureau (IAB) started reporting mobile ad revenue in the US, growth has been explosive – more than doubling year-on-year for three straight years:

And in their 2014 mid-year report, the IAB indicated that in Q2 of 2014 mobile ad revenue constituted 24% of total internet ad revenue, confirming that mobile advertising has truly arrived!

This tremendous growth in the use of micro ads on mobile devices has been accompanied by remarkable innovation in ad formats.  There are numerous approaches to mobile advertising – static display, rich media, in-app, search, video, text messaging and branded apps.  Innovative formats such as the IAB “Rising Stars” are being designed to increase user interaction.  Add in the unique features of mobile devices (cameras, GPS, interactivity, vibration) that ads can leverage in creative ways and the potential for engaging users is tremendous.  In fact, a comScore study showed mobile ads having substantially higher engagement levels when compared to ads served to desktop computers.

But beyond format, the portable nature of mobile devices allows advertisers a unique opportunity to exploit a vital dimension in advertising effectiveness – the recency phenomenon.  Recency research suggests that the closer in time advertising exposure is to an actual purchase occasion, the more likely the advertising will influence the buying decision.  The impact of recency is well-proven in traditional media.  Perhaps a study of Nielsen data by Colin McDonald illustrates this best.  The impact of an ad on share change was shown to steadily decline as the time following ad exposure increased.  This includes a drop of 16% from the first day following exposure to the second day.

This decline can be partially explained by a rapid decay in advertising memories.  An MSW●ARS study showed that proven ad recall after incidental advertising exposure faded by nearly fifty percent in the first three days after exposure.

So what does this have to do with mobile?  First, despite the fantastic and on-going growth in e-commerce, we still buy a lot of stuff the old fashioned way – at a physical store.  But, mobile devices are often used as an aid in the process.  In fact, comScore has reported that “nearly 3 out of every 4 mobile phone searches that end in a purchase bring customers into brick-and-mortar stores.”  So with consumers using mobile devices as part of the shopping process, the potential exists for ad exposure in real time – recency taken to its extreme.

Using location-targeting methods, advertisers can utilize either geo-fence targeting (creating a virtual area around a specific location such as a restaurant or retail store and serving ads to mobile device users who are detected entering the area) or geo-aware targeting (using the mobile device’s current location to serve ads relevant to the device owner’s proximity) to target temporally relevant advertising.  The IAB lists eight location targeting technologies by precision, with GPS being most precise, though use of multiple technologies is recommended due to inherent limitations with each (e.g., GPS works best with clear skyward sightlines).

Given that location-targeted ads are intended for use in the moment, it isn’t surprising that store location and special offers/coupons are commonly leveraged in these types of ads.  A McDonald’s campaign intended to direct potential late-night customers to locations with extended hours won an EMMA (Effective Mobile Marketing Award) with such an ad:

This campaign was designed to drive downloads of a ‘restaurant finder … it employed location-based technology and geo-targeted above-the-line messaging, to avoid sending potential customers to a locked door. Banner ads were served to smartphones on sites that the target audience of late-night travelers and shift workers were known to browse, when the recipient was in close proximity to an open restaurant…The app was downloaded 1.3m times over the course of the campaign, and when the sales uplift was calculated, the campaign delivered an ROI of 2:1.

–              EMMA Summary excerpt

Another EMMA winner illustrates how global marketers can creatively take advantage of local targeting.  Colgate used the occasion of Kumbh Mela, a Hindu pilgrimage in India billed as the largest gathering of humanity in the world (over 80 million visitors), to promote the new Ayurvedic toothpaste.  A geo-fence was created around the festival’s Colgate promotional booth and pilgrims entering this radius were sent a message on their mobile phones encouraging them to visit the Colgate location.  Due to low literacy rates, a voice message using a well-known radio personality was employed.  Visits to the Colgate booth increased over 300% compared to pre-promotion levels.

Vincent Van Gogh once observed “Great things are done by a series of small things brought together”.  When it comes to mobile advertising this observation definitely rings true.

Please contact your MSW●ARS representative to learn about techniques for evaluating the performance of mobile advertising campaigns.

Not since the advent of the television ad in 1941 has the potential for new ad formats been so great. The emergence of digital platforms is enabling marketers to experiment with a number of new ad formats, each of which could revolutionize marketing as we know it. Throughout 2014 we will be highlighting the most effective of the techniques being broadly adopted.

Part V: Long-Form Video

In the early days of television, the 60-second ad unit was the standard.  But in the late 1960’s the trend to shorter ad lengths took hold and the proportion of 60-second ads dropped from 100% in 1965 to 21% in 1975 to less than 2% in 1980.  Driven by rising media costs, the majority of television ads in the United States have been 30-seconds with well over one-third being 15-seconds or less.  In many other countries the ratio of ads under 30-seconds is even greater, with 20-second and 10-second ads being popular.

However, longer video ads are staging a dramatic comeback.  Look no farther than America’s premiere advertising platform, the Super Bowl.  In 2009, 23% of Super Bowl ads were 60-seconds or longer.  Fast-forward to 2014 and this percent nearly doubled to 43%.  And in annual best ad lists from USA Today, the Wall Street Journal and AdWeek, videos of 60-seconds, 3-minutes and even longer dominated at the expense of the 30-second spot.  These lists reveal the true driver of the renaissance in long-form video – online viral video.

MSW●ARS research has shown that advertising effectiveness – both CCPersuasion and Related Recall – decrease for shorter ad lengths.  However, this is often more than balanced out by the lower cost of the media buy, making shorter lengths a smart play.  But with online long-form video, the cost variable can drop out of the equation.  An ad can be as long as you want, if you can get consumers to watch it.  The prize for doing so is potentially enormous – and growing.  In fact, comScore recently reported that online video now reaches 85 million daily viewers in the US alone.

While long-form videos are at their heart commercial advertisements in the same way as TV ads, they also fundamentally differ in their delivery mechanism.  While television ads to a large extent play to a captive audience, long-form videos must not only hold viewer attention to avoid being clicked away from, they must also convince viewers to share the video with others.  To do this, these videos must be highly engaging to their audience.

Telling a Story

But this is not necessarily a bad thing.  Being restricted to a 30-second or even 15-second canvas requires compromise.  Larry Dunst once wrote “it’s hard enough to tell a ‘story’ in 60-seconds.  It’s very hard in 30.  In 15 seconds, forget it!”  Long-form’s capacity for effective story-telling has led to the evolution of short films with high production values and top Hollywood talent.  An example is the Johnnie Walker video “The Gentleman’s Wager” featuring Jude Law.  This video entertains and engages while infusing the product throughout and presenting an aspirational lifestyle meant to resonate with target consumers.

Johnnie Walker, “A Gentleman’s Wager”

 

 

Building an Emotional Connection

Long-form is also ideal for incorporating emotion, as it allows for a gradual build-up of tension and can lead viewers to become involved with the characters in a way not possible in standard ad lengths.  An analysis of acclaimed ads from the 2012 Super Bowl revealed that viewers who did not experience an intense emotional connection disengaged from the ad, as seen by a drop-off in interest relative to those with an intense emotional connection.

 M&M’s, “Just My Shell”

 

 

Such a lack of emotional engagement can be fatal to the prospects of a viral ad.  But ensuring viewers don’t click away is not the only advantage of emotional engagement.  Ron Lawner once observed that “successful campaigns have two things in common.  They have the rational message right.  But when they succeed, they also have the emotional message right.”  MSW●ARS research backs Lawner’s observation with one study showing that 60% of “liked” ads out-performed their basic selling proposition in terms of sales-effectiveness, while only 7% of “not liked” ads did so.

 

Emotion is the currency of the greeting card industry.  Yet in their video “World’s Toughest Job”, cardstore.com was able to powerfully evoke an emotional response in a way that was not only fresh and original but also relevant to the brand’s business.

 

Cardstore.com, “World’s Toughest Job”

 

 

On the other hand, feminine protection advertising is more often defined by a focus on functionality.  But in “Like a Girl”, Always sought to associate itself with building girls’ self-esteem at a vulnerable point in their lives in a way that no doubt left a lasting impression on many viewers.

 

Always, “Like A Girl”

 

 

 

Going Viral

By its nature, long-form video must compel viewers to want to share it with others since it depends on viral spread rather than paid placement in order to get in front of consumers.  MSW●ARS has studied viewer engagement using a battery of questions based on Flow Theory.  This approach to measuring engagement rests on five key dimensions:

• Focus & attention
• Loss of self-consciousness
• Altered sense of time
• Intrinsic rewards
• Immersion

The derived engagement score not only explains between 80% and 90% of the variance in buzz metrics (intent to forward and intent to watch again) but also was indicative of actual views on-line as can be seen in the contrast between the highest and lowest scoring videos tested by MSW●ARS.

 

While the number of potential approaches is as unlimited as the human imagination, a novel idea underlies the most successful viral ads.  The idea is so original that viewers want to be associated with it by passing it on to others.  Evian hit on such an approach with its Baby & Me spot, which has registered over 92 million views on YouTube to date.

 

Evian, “Baby & Me”

 

 

 Influencing the Viewer

While it is apparent that long-form videos are not simply longer versions of hard sell approach televisions ads, ultimately they must be able to help the brand sell to justify their continued relevance in a brand’s media strategy.  They must do their part to aid in differentiating the brand in consumers’ hearts and minds.  An effective long-form video can do this through building on the emotional connection between consumer and brand, associating the brand with qualities important to its image, revealing the brand’s values and how they promote them, or even showing the brand in action by solving problems in a way that inspires viewers to share.

 

In the video “Christmas Miracle”, WestJet sets themselves apart from competitors not by touting lower fares, on-time arrivals or network of direct flights.  Rather, the airline goes to amazing lengths to show their care for their travelers in an industry often perceived as heartless (who hasn’t had a frustrating air travel experience?)

 

WestJet, “Christmas Miracle”

 

Through its video “The Scarecrow”, Chipotle not only created a visually striking world for its main character to inhabit, it also infused the story with values the brand wished to be associated with, such as respect for animals, whole foods, initiative and hard work, and doing things the right way.

 

Chipotle, “The Scarecrow”

 

 

To understand whether a long-form video is effectively motivating viewers, MSW●ARS’s Touchpoint Plus platform can be used to assess sales effectiveness.  In fact, one long-form video in excess of 4 minutes in length achieved a 99^th percentile CCPersuasion result indexed versus benchmark.  And given the importance of an emotional connection and effective engagement throughout the length of the video, evaluative techniques based on neuro-scientific research are particular valuable.  For example, facial coding or EEG techniques can give a read on emotional engagement that is temporally discriminating to allow assessment of engagement in the critical early seconds of the video and to identify any segments where there is potential for viewer disengagement.

Please contact your MSW●ARS representative to learn more about techniques for evaluating long-form video formats.

1941 was a turning point in the history of marketing.  On July 1 of that year, the world’s first paid television commercial aired.  Costing the Bulova Watch Company $9 it was a pre-roll to a baseball game between the Brooklyn Dodgers and the Philadelphia Phillies.  Simple in nature, just a graphic and a voice-over, the ad extended Bulova’s reach from radio, print, and in-stadium presence to the emerging audience of television.

The_World_s_First_Ever_TV_Ad

Despite its simplicity, it served as the launching point for the highly visual branding vehicle that has come to dominate the advertising landscape.  Fast forward nearly 75 years to today where marketers eager to tell their brand stories compete for Super Bowl placements costing $4 Million!

Budweiser_Clydesdales_Horse_Super_Bowl_Commercial_2013

What made this breakthrough and subsequent evolution of the television ad format possible?  It was a confluence of factors.  Technology adoption among consumers provided another means of reaching them… while simultaneously fragmenting the existing radio, print and sponsorship media landscape.  FCC changes in legal frameworks in April 1941 provided security to companies willing to experiment in the new space.  But the final ingredient was marketers willing to change the way they developed their campaigns to simultaneously take advantage of the richness of the format while maintaining the practical underpinnings learned from the other media channels.  It was a time when “mad men” and “marketing scientists” were drawn upon in equal measures to create something new, great, and systemic.

We at MSW-ARS Research see this same convergence happening in 2014.  Digital platforms have finally reached the point where their reach and capabilities move beyond being just an inexpensive frequency vehicle fueled by banner ads and pre-rolls.  And the legal framework of what is and isn’t permissible has solidified. Finally marketers are experimenting with a number of new ad formats which have the potential to extend the art beyond the traditional TV spot.

Over the coming months we will be highlighting in this blog the most effective techniques we are seeing adopted, including:

• Illuminated User Generated Video – consumer created content is being enhanced with professional editing techniques to create the ultimate testimonial and product focus ads
• Long Form Video – the 30 second limit is being breached and the resulting ads are structurally very different from their shorter counterparts; especially in terms of emotional content
• Micro Ads – mastery of mobile requires a shift in thinking the other way, how to best engage with consumers in short, effective bursts
• Music – well recognized as an effective means for setting the tone, new research has tied it more directly to sales effectiveness, thus elevating its role
• Privacy – while consumers desire privacy they also desire relevance in their advertising and convenience in interacting with their brands
• MediaMesh – congruence in messaging and execution across media vehicles is as important as ever and even out-of-home advertising is leveraging the new technology and learning
• Creative Is Still King – even with the cost savings of digital reach, the largest return will come from the power of the creative itself