POV: 2013

POV: 2013

2

We’Ve cOllected a WhOle year Of Mindshare ‘POint Of VieW’ articles tOgether tO giVe yOu a cOMPlete Picture Of hOW the industry has deVelOPed in 2013.All POVs Are written ‘in the mOment’ (we stArt

with JAnuAry And gO thrOugh tO nOVember) And

were cOrrect At time Of writing.

intrOductiOn

cOntents

acquisitiOn by facebOOk Of atlas frOM MicrOsOft 3

saMsung’s tizen-based PhOnes 4

facebOOk gOes intO the search business 5

ces 2013 suMMary 6

gOOgle ‘shOPPing ads’ 7

Vine,VideO sharing by tWitter 8

yOutube tO intrOduce Paid subscriPtiOn 9

sOny and the PlaystatiOn 4 10

tWitter’s ad aPi 11

firefOx 22 and cOOkie blOcking 12

facebOOk reVeals ‘neW lOOk’ neWs feed 13

MObile WOrld cOngress 2013 14

sxsW interactiVe 2013 WraP-uP 15

tWitter tO launch Music serVice 17

facebOOk hOMe 18

tWitter brings keyWOrd targeting tO sOcial 19

tWitter launches Music serVice - uPdate 20

facebOOk’s neW VideO ads 21

taking a bite Out Of aPPle 22

Where next fOr yahOO? 23

fergusOn retired 24

aMazOn cOins 25

yahOO buys tuMblr. 26

MicrOsOft and the xbOx One 27

aPPle iOs 28

facebOOk siMPlifies ad Offering 29

yOutube One channel 30

PlaystatiOn 4 Vs. xbOx One 31

yes We cannes 32

instagraM VideO 33

facebOOk #hashtags 34

linkedin sPOnsOred uPdates 35

facebOOk results 36

gOOgle chrOMecast 37

Pinterest Price drOP nOtificatiOns 38

aOl buys VideO exchange adaP.tV 39

tyny July 2013 40

itunes radiO 41

tWitter gOes On the OffensiVe 42

tWitter’s uPcOMing iPO 43

grand theft autO V 44

gOOgle gOes secure 45

an uPdate frOM china 46

huMMingbird algOrithM – gOOgle gets sWeeter results 47

Pinterest: PrOMOted Pins 48

facebOOk’s neW aPP adVertising fOrMat 49

instagraM: PhOtO streaM ads 50

aPPle ibeacOn 51

tWitter exPands intO tV 52

dOubleclick bid Manger gets fbx access 53

neW gOOgle adWOrds ad rank fOrMula 54

gOOgle banner ads 55

face-scan technOlOgy tO target ads 56

tWeet-a-cOffee 57

tV-sync facebOOk ads 58

tWitter’s “cOnVersatiOn targeting” 59

aPPle buys PriMesense 60

POV: 2013

3

backgrOund

Although the financial details haven’t been disclosed, the acquisition says a lot about the digital fortunes of both Facebook and Microsoft; the latter limiting its ambitions in selling online advertising, whilst the former is using its considerable clout - one billion users and counting - to become a hub for advertising. Amidst murmurings that Atlas’ direction was waning under Microsoft’s stewardship, the purchase is certainly exciting news for advertisers.

With Facebook’s eagerness to discover innovative ways of monetising its service and turning a profit for its shareholders - something that’s proved particularly challenging in the face of stiff competition from Google - the world’s largest social network will now be hopeful of proving its value to brand marketers. Atlas will enable Facebook to show advertisers how well its ads drive sales or help to achieve other marketing targets.

iMPlicatiOns

Part of Atlas’ appeal is the ability of its advertiser solutions to decide which ads should be displayed to which internet user. However, its major selling point is the proprietary data that tracks media attribution for online purchases, detailing how ads have influenced and encouraged transactions. If somebody buys a new coffee machine, for example, Atlas will show marketers if the same customer was exposed to any of the brand’s online ads in the days leading to the purchase. In addition, Facebook will be able to track further touchpoints in the consumer journey by combining Atlas’ existing features with the capabilities of Nielsen and Datalogix.

suMMary

While good news for Facebook and its marketing potential, Microsoft’s sale of Atlas is continued fallout from the disastrous $6 billion purchase in 2007 of Atlas’ former parent company, aQuantive Inc. At the time, Microsoft believed the purchase would position it as a leader within the digital advertising sphere.

In reality though, the value of Microsoft’s digital advertising business continued to fall, while some advertisers have argued that the company has allowed Atlas to drift. Rather than brokering ads across the internet - a la Google - Microsoft has cut its losses and will instead focus on selling advertising on its own platforms and products.

Facebook’s acquisition of Atlas should result in a significant increase in the sophistication of ad campaign analytics, giving brands a more complete view of how their Facebook advertising spend is performing. For brand marketers, the enhanced attribution and ROI features Atlas will provide for Facebook campaigns will enable them to justify shifting more advertising dollars to the social network.

“tO dO a Much better JOb Of Making sure the right Messages get in frOnt Of the right PeOPle at the right tiMe”.

Brian Boland, Facebook’s director of monetisation product marketing, said the acquisition of Atlas is driven by a desire to achieve a ‘holistic view’ of campaign performance, allowing marketers and agencies ‘to do a much better job of making sure the right messages get in front of the right people at the right time.’.

Facebook plans to invest in Atlas’ capabilities by scaling its back-end measurement systems and upgrading the current suite of advertiser tools on both desktop and mobile, while user interface and functionality will also be improved.

acquisitiOn by facebOOk Of atlas frOM MicrOsOftfAcebOOk hAs cOnfirmed thAt it hAs

entered An Agreement with micrOsOft tO

PurchAse AtlAs, the digitAl Ad serVer And

meAsurement sOlutiOn

christOPher dOyle

POV: 2013

4

Marta MattiOli & Matt Mint

saMsung’s tizen-based PhOnessAmsung hAs AnnOunced PlAns tO lAunch

multiPle deVices using linux-bAsed mObile

OPerAting system tizen

backgrOund

This represents a significant move away from the Google-owned Android operating system it has used in most, but not all, of its devices to date. Based on Samsung’s market share, this move could see Tizen quickly establish itself into the 3rd or 4th most used operating system behind Apple and Android.

Released at the beginning of 2012, Tizen is a free Linux-based, open-source software platform for multiple device categories, including smartphones,

tablets, netbooks, in-vehicle infotainment devices, smart TVs and more. This means Tizen can provide a consistent user experience on multiple devices. It is led by Samsung, which in 2012 invested $500k to become a platinum-level member of the Linux foundation alongside IBM and Intel. It supports both Intel and ARM processors and its SDK and API allows developers to use HTML5 to write applications. At the moment Tizen is not the default OS on any mobile devices, but during Consumer Electronics Show (CES) in Las Vegas in 2012, it was shown working on a Lenovo tablet.

iMPlicatiOns

Samsung is currently using Google’s Android OS as well as an OS of its own (Bada), but it is thought Samsung will quickly transition all devices onto Tizen. This move is being largely interpreted as Samsung’s response to Google’s acquisition of competitor Motorola for $12.5 billion in May 2012.

For Google this could mean gradually losing a powerful distribution partner in the market and therefore losing some ground to Apple’s iOS.

Given the proliferation of operating systems and the barriers put up by their owners to make switching seem complicated and therefore undesirable, it’s possible we’ll begin to see the launch of ‘switching services’ – helping consumers transition content from one operating system to another. Those that can offer favorable conditions can poach users from other operating systems and devices, ensuring that the consumer buys content through them and not their competitors.

For advertisers it exacerbates the problem of needing to produce mobile and tablet assets for multiple operating systems. Most global advertisers will need to ensure they produce assets for the key operators including Apple, Android, Windows and now Tizen.

fOr adVertisers it exacerbates the PrObleM Of needing tO PrOduce MObile and tablet assets fOr MultiPle OPerating systeMs.

suMMary

This new OS is not the only one challenging Android and iOS in the smartphone market: earlier this week it was announced that the Ubuntu OS would soon be available on smartphones, and Windows continues to make gains. Although these may not be the biggest threat for Apple and Android thry do represent a further fragmentation of the market which should lead to more control for consumers and less autonomy for operating systems.

POV: 2013

5

facebOOk gOes intO the search businessJust A few shOrt mOnths AgO fAcebOOk

cOuldn’t dO Anything right

Graph Search enables users to get information through their network of friends, or their “social graph”, and importantly includes brand pages, thus encouraging marketers to invest in stronger fan hubs within Facebook as well as on the Web. Graph Search will enable users to ask basic questions such as “What’s the most liked Mexican restaurant in London” and get answers based on the Facebook ecosystem - friend’s data, applications, brand pages, etc. The initial beta will be limited to US English Facebook users. In addition to Facebook content, Web search results will also be included, all powered by Bing, and including Bing advertising. Further roll-out by user, language, and market will happen after the initial test.

backgrOund

Universally derided for its IPO debacle, every pundit in town took their turn lambasting the former darling of the media industry. What a difference a few months make. Not only has Facebook’s stock nearly climbed back up to its original IPO evaluation (around $30 as of writing), the company has also kicked off 2013 with a bang by announcing a major new feature, Graph Search.

graPh search Will enable users tO ask basic questiOns and get ansWers based On the facebOOk ecOsysteM

iMPlicatiOns

A Facebook search product has been one of the industry’s long-standing rumours, and is clearly a direct challenge to Google, which is busy layering G+ social intelligence into its search algorithm, which remains its prime business and core strength. Facebook’s approach relies on incentivizing its 1 billion + users to tap into more of the social network’s features by simply making it convenient to stay within its ecosystem to perform the Internet’s most basic functions. However it will take some persuading to get consumers and advertisers to migrate such ingrained online behavior into Graph Search given Google’s dominance in search, (in some cases over 90% of a market as in the UK). Bing has tried for years, even going so far as to weave in Facebook data, but has struggled to significantly change market share. Sticking Bing into Facebook is a logical move but may not be enough to fundamentally alter a consumer’s knee-jerk reaction to ‘Google’. ‘Graph Searching’ doesn’t exactly roll-off the tongue.

In addition to taking on Google, Facebook may simply be looking for ways to bolster usage on its platform. Recent data and research from SocialBakers indicates that Facebook’s users are dropping out or simply less engaged, all of which would mean less inventory and less people to target with advertising. Facebook deny this and other assertions, including the long-dreaded youth exodus to places like Tumblr. Functionality such as a Graph Search will potentially give such people a compelling reason to stay and engage.

suMMary

After a difficult 2012, Facebook now has some clear momentum going into 2013. Its share price has rebounded in the market as investors have regained confidence in its ability to monetize the platform, particularly in the mobile space. Graph Search open up a new revenue stream while providing existing users another reason to stick with the platform, growing ad inventory in the process. This may be the first of several new Facebook features and enhancements lined up over the next few months. No doubt Google is just around the corner with its response.

POV: 2013

6

nOrM JOhnstOn

backgrOund

Imagine the world’s largest Best Buy electronics shop pumped up on steroids and populated by a strange mash-up of intense tech geeks, cutting-edge marketers, and advertising and media honchos….all in Vegas. Here’s a quick take on some of the key talking-points and trends.

the internet Of things

More and more things getting connected to the Cloud as objects get chipped, connected, and cognizant. Nearly everything on display from washing machines to toothbrushes to cars had some IP-enabled capability. Connected automobiles in particular seem poised to break through the CES price-prohibitive showroom into an everyday dealership offering. Interestingly both Ford and GM are opening up their dashboards to third-parties so they can create new utilities and applications, either in car or residing on smartphones, which will control your auto remotely.

Phablets

The merging of the smartphone and the tablet into a new device, sized conveniently in between the current ones. Samsung’s new Galaxy Note has been the leader in the field, but expect fierce competition as everyone tries to capitalize on a growing category set to double from 25 million units sold last year to over 60 million in 2013. Next up: foldable phablets and screens that can be rolled up into your pocket.

PixelMania

It was impossible to avoid the myriad stunning new TV sets dominating the central hall. Large 4k resolution TV’s were everywhere. These new HD screens are simply stunning in their clarity, often feeling better than real life. I spent a good 30 minutes gawking at LG’s new OELD HD display. All of these sets are of course IP-enabled offering new advertising and marketing opportunities, although the ecosystems are still somewhat closed and fragmented into walled gardens. One major player missing was of course Apple, a company known for scaling closed ecosystems. Will or won’t Apple get into the TV business? The consensus is yes, most likely next year.

Will Or WOn’t aPPle get intO the tV business? the cOnsensus is yes, MOst likely next year.

the elePhants in the rOOM

Largely missing from the main event: Google, Amazon, Facebook, Microsoft, Yahoo, and many others. Most were lurking in the shadows hosting big-wig meetings and meals up and down the strip, busily building relevance and experiences on top of all of the gizmos and gadgets in the conference hall. Apple continues to be the main hardware and software player missing-in-action. Rumors continue to circulate around a forthcoming Apple TV, even a new fitness watch (iWatch). Ironically the one company missing from Vegas may be the biggest game changer of them all.

ces 2013 suMMaryit’s extrAOrdinArily difficult tO cAPture

the mAdness Of the AnnuAl cOnsumer

electrOnics shOw in One PAge

POV: 2013

7

Martin Vinter

gOOgle ‘shOPPing ads’

in december lAst yeAr gOOgle AnnOunced

PlAns tO rOll Out gOOgle shOPPing.

gOOgle is nO lOnger dePendent On reVenues frOM search Only

suMMary

Google’s first step in generating further revenue from paid search is through Product Listing Ads (PLA) – already accounting for 11% of overall paid search spend in the US according to Adobe. In fact, according to Adobe almost all of Google’s search market share growth in the US came from PLAs in the 12 months to January 2013. In the wider context of online commerce this move isn’t surprising. E-commerce is experiencing double digit growth globally and Google wants an even bigger piece of the pie. Selling your products, with Google as the middleman, was never going to be free forever and Google has the power over retailers to start charging – or close the opportunity! Google PLA will undeniably be a success as many retailers simply cannot afford not to be present on Google product listings as they look to grow their own revenues. Those retail advertisers not already using PLA should get onboard quickly –never mind Google eating into their profits. Most advertisers will be used to paying Google for sponsored links anyway. New format old monetization model!

backgrOund

In December last year Google announced plans to roll out Google Shopping. These new and more distinct looking shopping ads are based on Product Listing Ads (PLA) and appear both in a stand-alone shopping section and blended with traditional sponsored links. The change means an end to the free product listings, pulling in advertisers own product SKU feeds, that have been in place for years. The new format will use the same data feeds with enhanced presentation and of course will charge for each click. The new PLA format has been trialed in the USA and Google plans to start introducing it across the UK and Europe, Brazil, Australia and Japan starting in February 2013.

iMPlicatiOns

Mindshare has run PLA activity in both the USA and Germany. For clients running PLA we have observed between 1-5% of overall paid search budget going to Google shopping. Most clients have experienced an above average CTR compared to traditional sponsored links on the search results page. Good news for advertisers who now no longer rely on text only to attract clicks on the search engine results page, but can include images of their products and display them more prominently. In short, initial findings are reassuring from a consumer response and campaign efficiency perspective.

The days when Google looked more like a one trick pony than a global conglomerate are long gone. Years of pursuing growth through an acquisition strategy have paid off: Google is no longer dependent on revenue from search only. The world’s biggest search engine experienced years of organic growth in the search space, but now the question is how it further monetises with growth slowing to a pace that doesn’t satisfy Wall Street. Google has up to 85% marketshare in most markets. The new model will help re-invigorate growth and no doubt become a staple format along with the long-established sponsored links top, right and sometimes bottom of the search results page.

POV: 2013

8

PedrO raMirez

Vine has been described as the neW “instagraM fOr VideO”

backgrOund

It features no post-capture editing and it limits the user to a fixed set of possibilities, just as Twitter did when it first launched. At launch the app is only available in the iOS App Store optimized for the iPhone and iPod Touch. There’s no word yet on when the app will be available on other platforms. Vine has been described as the new “Instagram for video” as it enables users to quickly capture video and publish it to social networks. Vine enters a crowded field of other similar standard or quality compromised video capture tools (e.g., Cinemagram, GLMPS, Tout, even YouTube with its recent camera capture app).

Vine features a feed-like stream of recently published looping videos, with additional user filtering by popularity, editor’s picks, and some curated hashtags. Video starts loading and playing only when it is on the user screen, and in contrast to similar apps, it only plays the focused video’s audio, which goes away as the user scrolls to a different video.

There’s an innovative way to capture the video and edit at the same time by touching the screen the recording “head” advances and stops allowing for a video narrative to be composed until reaching a maximum of six seconds. Then users are confronted with a screen allowing them to share to Vine, Twitter and Facebook.

Vine’s videos are captured in a video standard that is already native to most phones and browsers, thus enabling the videos to be supported by Twitter cards and embedded and expanded from single tweets when seen on the desktop version of Twitter. In contrast to Facebook’s new video capturing tool, Vine is a stand alone app positioned as a new “art form” separate from Twitter’s text based tradition.

iMPlicatiOns

Vine is another way for brands to use Twitter as a channel for social interaction with the consumer, albeit via short visual bursts with more emotive content. Similar to Facebook video posts, brands should explore the most compelling video territory for their followers and fans. However, the six-second format will limit the possibilities, either focusing a brand’s efforts or frankly confounding them. Traditional creative agencies may struggle meeting the new formats, and indeed consumer, publisher, or artistic curated content may be more compelling. At launch some brands have started to experiment with Vine creating playful and uncompromising videos “just for fun”. For now it is mostly news organizations and TV channels, although we have already seen some examples by FMCG brands. It will most likely take some time for the platform, and brands approach to it to fully mature.

In terms of management, it will be challenging to manage shared login detail access by community and content managers, as for now there’s no back-office self-serve way to manage Vine or to connect it to social media management tools, which may cause problems. For example, a few days after launch Vine hashtag searches resulted in many videos containing sensitive content (nudity, violence, or medical procedures). As a result, Vine has created a process to censor inappropriate videos and warn users of sensitive content with a preload warning message screen. However, expect more “sexting” incidents.

traditiOnal creatiVe agencies May struggle Meeting the neW fOrMats, and indeed cOnsuMer, Publisher, Or artistic curated cOntent May be MOre cOMPelling.

suMMary

Consumers, brands, and agencies are just starting to get introduced to the app. With online video advertising set to grow by over 46.5% this year, Twitter may be setting the stage for a new online video advertising format to add to their growing efforts to commercialize the platform. A Twitter promoted Vine ad format may just be on their 2013 roadmap, along with an IPO.

Vine,VideO sharing by tWitterVine is the new sOciAl netwOrk APP creAted

by twitter thAt lets yOu creAte And shAre

shOrt six-secOnd lOng VideOs And Publ ish

them tO twitter And fAcebOOk.

POV: 2013

9

Maxine haMiltOn & eridani baker

yOutube tO intrOduce Paid subscriPtiOnfOunded in februAry 2005 And bOught by gOOgle in 2006,

yOutube hAs becOme the gO-tO site fOr VideO On the web.

iMPlicatiOns

YouTube’s current targeting has proven successful for advertisers, high-end brands have been able to advertise to a high-end audience through clever audience targeting. That said YouTube is still often associated with cat videos and squirrels on skateboards. The introduction of a paid subscription model will set clear boundaries between premium and non-premium content and allow for better targeting. For a marketer this assurance of quality content should make YouTube ads more appealing.

Content creators are also likely to be attracted to the new paid YouTube channel, Salar Kamangar the CEO of YouTube has hopes that the new offering will attract smaller ‘indie’ type channels that can’t afford to run in a standard paid TV environment.

suMMary

YouTube is not charging for all its channels, and is instead only applying the model to strong niche channels and new channels. A test-and-learn approach is a pragmatic means of ensuring it balances subscription costs with audience reach.

Overall the new model should increase the amount of quality content available on YouTube and so make the space more appealing to brands seeking association with premium content. For brands there are multiple opportunities with the new model, including subsidised consumer subscriptions, exclusive sponsorships, migration of more TVC budget to online video, improved targeting, and of course development of their own exclusive YouTube channel. However, YouTube is not the only option in town. Even Netflix has expanding its subscription business model by developing new original content (“House of Cards”).

YouTube paid subscription channels are planned to launch in April this year. Costs will be tiered and will likely allow users to choose ad-supported or ad-free subscriptions. The first step has been to reach out to a small group of channels that have already gained a large audience, asking them to submit ideas to create channels that users would have to pay to access. No partners have been officially named yet, but potential channels include Machinima – the number one video entertainment network for gamers around the world. Machinima’s existing YouTube network has almost 190 million subscribers and has been viewed over 40 billion times.

The initial subscription cost would be $1-$5 per month putting YouTube in direct competition with other video streaming companies such as Netflix and Amazon Instant Video. There is also talk of a pay-per-view model for live events such as concerts and sporting events and content libraries.

yOutube is still Often assOciated With cat VideOs and squirrels On skatebOards

fOr a Marketer this assurance Of quality cOntent shOuld Make yOutube ads MOre aPPealing.

backgrOund

With approximately one hour of video uploaded every second, the site is rich in content. In recent years, much of YouTube’s focus was on categorising some of that content into “channels”. YouTube is now looking to leverage that effort via a paid subscription model.

POV: 2013

10

backgrOund

The wait is now over as Sony finally unveiled the new PlayStation 4 during a live press conference in New York on the 20th of February, which was live-streamed to over 3.2 million viewers around the globe.

Sony highlighted several key developments including the new PlayStation Cloud service and the heavily updated Dual Shock 4 controller. Sony also briefly touched upon the merging of its online content services across music, video and gaming, all of which will tie into its comprehensive social network capabilities.

One of Sony’s main areas of focus in this console generation is making core gaming a more social experience though the introduction of a new PlayStation Eye camera packaged with every unit and the new Dual Shock 4 controller, which includes a front-facing touchpad, microphone socket and a social sharing button. At a touch of a button, players will be able to automatically upload in-game screenshots or video content onto their Facebook profiles and UStream accounts, video chat with friends whilst playing and even be a spectator in each other’s games.

The new PlayStation Cloud service will offer users Sony’s back catalogue of titles as well as a way for them to trial new game demos instantly. Sony says it’s planning to drip-feed more details on the new cloud service over the next few months, the majority of which is expected at this year’s E3 in June.

sOny and the PlaystatiOn 4it’s been seVen yeArs since the Ps3 wAs releAsed And gAmers

And the industry hAVe been wAiting with bAted breAth fOr

the stArt Of A new cOnsOle generAtiOn.

saM kerr

One Of sOny’s areas Of fOcus in this cOnsOle generatiOn is Making gaMing a MOre sOcial exPerience

suMMary

Sony is keen to show that it’s learned from its previous mistakes with regards to its content strategy, social capabilities and developer support, by focusing heavily on these areas in the PS4.

But considering Sony’s current financial predicament, the success of its drive towards comprehensive content services will indicate the survival of the console industry as a whole as console USPs are gradually being eroded by mobiles, PCs and connected TVs. Whilst it’s likely that there’ll be a demand for consoles for another decade yet, eventually I believe small entertainment oriented PCs will take over the living room for our gaming and entertainment needs.

iMPlicatiOns

With the focus on social and a rapid increase in user generated content, branded in-game integrations will have a wider impact as it’s not just gamers, but also their various networks of friends who would see brand presence in games. Brands could sponsor in-game events or integrations and could host competitions for the best user-generated videos around branded content.

The PS Cloud service is rich in potential for brands as well. By opening up Sony’s vast library of software for PS4 users, brands could capitalise on consumer nostalgia by offering customers free access to classic titles or new releases. Although not yet confirmed, Sony is also likely to package the PS Cloud technology as a subscription service for its connected TVs, tablets and mobile products. And as Sony is also linking all its content services together, it’s likely that the social network that Sony is creating for the PS4 will also be present across its whole product range, which would also mean that the social sharing functionality would become more impactful across passion points, such as music and video, as well as games.

Additionally, the new technology of the PS Eye, touchpad and the integration of Move motion functionality into its new controller could be used to create innovative activations on the platform, much the same as how Kinect has been used for advertising purposes for the Xbox 360.

POV: 2013

11

backgrOund

For now it’s only open to five bid management technology suppliers (Salesforce’s Buddy Media, Adobe, TBG Digital, Hootsuite, and SHIFT). Mindshare uses Saleforce’s BuyBuddy as its preferred partner and early results from limited beta test campaigns show promising results. A wider roll-out is expected in the near future.

The API will enable advertisers to layer in additional analytics, trends and insights as well as performance data to compile new audience profiles. In addition, the dashboards will take full advantage of the real-time reporting data, which will make targeting and set-up of multiple audiences a lot more manageable. Access to performance data and the rise and fall of trends will make for better and more engaging advertising and marketers will be able to compare the performance of Twitter campaigns side-by-side with campaigns on other platforms, such as Facebook and LinkedIn.

Twitter specifically highlights that the launch of the API has had no effect on its actual algorithms. A good user experience is still the main focus of the company; bad performing tweets will still be pulled and the number of ads served won’t change.

anna brathOlM & Marta MattiOli

access tO PerfOrMance data and the rise and fall Of trends Will Make fOr better and MOre engaging adVertising

iMPlicatiOns

As the Twitter platform becomes more attractive from a marketing perspective, users can expect more real-time ads that capitalize on trending topics such as Oreo’s rapid response to the recent #blackout during the Super Bowl. The net effect will be Twitter further cementing its emerging position as the “second-screen” of choice for advertisers and consumers. Given simultaneous TV and smartphone usage is on the rise (85% of US smartphone users watch TV and use their mobile phones at the same time), its scale in mobile users and the fact it’s an experience built for small screens, it has an edge in this space. Twitter’s recent acquisition of Bluefin (a social TV measurement tool) is a further demonstration of its intent to maintain its perceived leadership position over Facebook when it comes to second-screen advertising.

For advertisers, the API also means efficiencies both in terms of time spent managing Twitter campaigns, and better return on investment. The flip side is that lowering the entry barriers and increasing efficiencies will drive up competition. On an auction based platform, competition means increased cost of inventory. First movers will undoubtedly harvest the highest returns, while later adopters will find that their competitors have built quality, history and learning that could be costly to outbid.

suMMary

The launch of the Twitter API is good news for marketers and is expected to further accelerate the already robust growth in advertising spend on the platform. Twitter users should also get more engaging and timely ads, particularly ones like Oreo’s ‘dunk in the dark’ that react to trending topics in real-time. Now expect the next move in the social wars from Facebook.

tWitter’s ad aPitwitter is OPening its AdVertising APi (APPlicAtiOn-

PrOgrAmming interfAce), which will enAble mArketers tO

better use twitter dAtA streAms tO mAnAge cAmPAigns And

imPrOVe tArgeting.

first MOVers Will undOubtedly harVest the highest returns, While later adOPters Will find that their cOMPetitOrs haVe built quality, histOry and learning that cOuld be cOstly tO Outbid.

POV: 2013

12

backgrOund

Although widely reported in the press, the proposal is still under internal discussion at Mozilla.

Firefox and Safari (which has been doing the same for the past 10 years) constitute a fair proportion of the Web’s audience who, if Firefox goes ahead with its blocker, will now be largely invisible to third-party data collectors (ad networks, trading desks, research companies and their clients).

firefOx 22 and cOOkie blOckingmOzillA hAs AnnOunced thAt it intends tO

intrOduce A cOOkie blOcker intO it’s firefOx

22 releAse, which is due in June 2013.

The proposed Firefox policy will allow cookies presented from a domain that users actually visit – dubbed a “first-party” site – but will actually block those generated by a third-party domain unless the user had previously visited the cookie’s site-of-origin.

This means that if Firefox goes ahead with the plan, we will have no transparency into its users for targeting or analysis purposes.

The industry has been debating what Do Not Track (DNT) means with the Worldwide Web Consortium (W3C) and privacy activists for the better part of a year. As recent as February there was another meeting in Boston to try and move the DNT discussion forward, but with no success.

The W3C wants third parties to have to obtain permission before setting cookies on a user’s browser, whilst so called first parties (those parties collecting information off their own site such as Google, Apple, Amazon, Microsoft, Facebook) would be exempt from these requirements.

Mozilla has been a staunch supporter of the W3C point of view.

JOhn MOntgOMery

We Will haVe nO transParency intO their users fOr targeting Or analysis PurPOses.

iMPlicatiOns

The advertising industry contends that this is an imbalanced view and it discriminates against the smaller players who are trying to use third-party data for targeting, attribution and research. The W3C view puts the power firmly in the hands of the major players and is prejudicial toward the many companies who use or depend on third-party data.

We also believe that the current AdChoices self-regulatory opt-in model is more privacy friendly. It offers consumers transparency (about who is collecting data) and choice (users can opt-out of data collection). The W3C model, on the other hand, gives users little choice and no transparency: a) you either agree to the first-party terms or are denied access. b) once you are a user of their services, the first parties offer very little control over how your data is collected and used.

On the surface, Mozilla’s move is much more aggressive than Microsoft’s recent decision to include a default DNT header in IE10. Microsoft’s move was widely ignored by the industry because it was a “machine” decision rather than a choice made by the user.

suMMary

We have to let industry privacy experts manage the discussion with Mozilla. GroupM is engaged in this conversation.

The self-regulatory AdChoices program has gained real momentum. The more AdChoices icons we have accompanying our clients’ advertising impressions, the more consumers will understand how sharing data contributes to a better web experience.

• Join the Digital Advertising Alliance (DAA) and use icons on campaigns where data is collected.

• The more transparent we are with consumers, the more they will learn to trust us with their data.

• Wherever you have the opportunity, please stress to anyone who is prepared to listen, that Do Not Track is a bad option – it is bad for the Internet, for small business, for growth, for new jobs and for consumer privacy.

MicrOsOft’s MOVe Was Widely ignOred by the industry because it Was a “Machine” decisiOn rather than a chOice Made by the user.

POV: 2013

13

facebOOk reVeals ‘neW lOOk’ neWs feedfAcebOOk hAs AnnOunced it will sOOn be rOlling

Out A new, mOre VisuAl And less cluttered, lOOk

which will enAble users tO filter the tyPe Of

cOntent they see in their news feeds And creAte

A seAmless exPerience between mObile And Pc deVices.

laura MurPhy & charles Warnet

the best Way tO increase yOur engageMent rate is tO PrOduce and POst high quality PhOtOs and VideOs.

backgrOund

The main changes are: The News Feed stream will be more prominent, with the home page reduced from four columns to three (the news ticker on the right-hand side is disappearing); Page posts and ads will become more visual – e.g. larger format, caption overlay on some photos, cover photos in Sponsored Page ‘Like’ Stories; Ability to filter News Feed by Photos, Groups, and Following and finally the Navigation sidebar will come with bookmarks and contacts to match the look of Facebook mobile.

The Facebook News Feed changes are aesthetic only and the EdgeRank algorithm, which determines what content will be surfaced in News Feeds, will not be affected.

iMPlicatiOns

A focus on producing visually appealing content: The changes to the News Feed have made it clear that the best way to increase your engagement rate is to produce and post high quality photos and videos.

Re-engage your fan base: The addition of the ‘Following’ tab on the right-hand side of the Facebook home page will allow users to filter content by the pages they ‘like’. Stay tuned for paid opportunities in the “Following” feed available later this year.

Choose your page cover photo carefully: In addition to the profile photo, Sponsored Page ‘Like’ Stories will now also include the brand page’s cover photo, which may influence users’ decision to ‘like’ your page.

suMMary

Facebook’s redesign has streamlined the look of the News Feed and aligned it with mobile apps to improve the user experience. However, it’s also likely that the changes are an attempt to win back users with an ever-decreasing attention span (teenagers in particular are said to be leaving Facebook in droves) as photo-based competitors such as Tumblr, Pinterest, Snapchat and Instagram steadily capture their lost audience.

teenagers in Particular are said tO be leaVing facebOOk in drOVes

POV: 2013

14

the launches

LG brought six distinct handsets to MWC, and although its smartphones were announced prior to the conference, the top-end devices still made a splash. LG also unveiled Dual Recording, which enables users to shoot video simultaneously from the front and rear-facing cameras so that the recording embeds the filmmaker’s reaction to the subject in the same movie. Nokia showed off four new handsets that will join its Lumia and Asha lines, aiming to bring smartphone functionality to more cost-sensitive markets. Huwaei announced that it was launching two new handsets. MWC also showcased an impressive array of devices that blur the line between smartphone and tablet, “phablets”. Samsung unveiled the Galaxy Note 8.0, an eight-inch hybrid (the launch of Samsung Galaxy S4 is Thursday 14th March). Other different sized screens included the 5.5” screen on the LG Optimus GPro and Lenovo K900, and the 5.7” screen on the ZTE Grand Memo, to the larger 7” screen on the Asus FonePad.

MObile WOrld cOngress 2013this yeAr’s mObile wOrld cOngress (mwc)

wAs the biggest yet.

the trends

NFC MWC hosted the NFC (Near Field Communications) Experience, a showcase to demonstrate to delegates and attendees the magic of the technology. There were scores of announcements about freshly-forged partnerships that will drive mobile payments, mobile advertising, and mobile commerce to new heights this year including: Foursquare’s integration with MasterCard and Visa to offer special discounts for card holders when checked in to specific locations and Visa’s announcement that it is partnering with Samsung to build Visa PayWave into future Samsung smartphones and also partnering with ROAM to help bring the Visa payment platform to more retailers.

Media Takeaway: The mechanism for mobile payments and mobile wallets offers a range of opportunities for brands to engage with consumers, e.g., click-to-wallet solutions that seamlessly deliver discounts/coupons, a platform on which to build loyalty schemes and new data streams to utilise. However, any activation in this space must consider how the platform impacts and can improve the current user journey.

Connected Cities The GSMA (The GSM Association - the organization behind MWC and made up of the world’s mobile operators) is moving beyond the connected home to focus on the Connected City, showing how retail, municipal and personal can be networked together to increase the efficiency and safety of dense urban habitats. AT&T showcased energy consumption and home security management systems, Deutsche Telekom and IBM demonstrated how mobile helps create better public transportation, and Vodafone showed how they can monitor solar energy production while remotely controlling street lighting and signage for maximum energy efficiency. All of these technologies focus on machine-to-machine connections, also known as ‘the Internet of Things’, in many places cutting humans out of the loop to create the best results.

Pilar Martinez,

nachO suanzes & JaMes lynn

dual recOrding, Which enables users tO shOOt VideO siMultaneOusly frOM the frOnt and rear-facing caMeras

Media Takeaway: Connected devices open a wave of new opportunities for brands to create intelligent products, services and communications. Developments in this space offer new routes for content delivery and a rich stream of data to generate actionable insight.

Practical Mobile Emerging markets featured heavily in presentations at MWC, with both Nokia’s and Mozilla’s CEOs highlighting that the next billion internet connections will come from mobile users in these low-to-middle-income countries. This anticipated growth meant that the event saw manufactures launching devices to target these markets. The most exciting development was Mozilla’s announcement of the launch of Firefox OS, an OS built on open web standards and capable of operating on much less sophisticated devices.

Media Takeaway: Recognition must be given to nuances in consumption patterns and a focus on emerging markets is crucial. Test and learn strategies must be deployed to explore the most effective means of communication. Keep in mind that smartphone penetration levels, while growing dramatically, are still low in many markets. Alternative marketing tactics (SMS, MMS, browser-based marketing) may be the norm not the exception.

details

Over the course of the event, Barcelona welcomed more than 72,000 attendees from 200 countries. Here are the highlights of the world’s biggest mobile get together:

POV: 2013

15

the MOst exciting deVelOPMent Was MOzilla’s annOunceMent Of the launch Of firefOx Os

backgrOund

Its original intent was to focus on community-driven technology creativity with a specific emphasis on how the Internet can create a positive impact on the world. It has since become a crossover event consisting of three key areas (Film, Music & Interactive). However, in 2013 we saw the emergence of a new category, fashion, with numerous panel sessions centered on fashion tech as well as ancillary events from designers like Billy Reid.

Every year, tons of startups and technologies flood Austin while we as marketers look to navigate the madness in the hope of finding the next Twitter, Foursquare or game changer. The event itself has been criticized in recent years for not delivering companies of such caliber. However, it’s important to appreciate that the disruptive trends of 2008-2010 at SXSW stemmed from smart phone growth and changing user behaviour. These were mostly software based and quick moving, while the current trends on the horizon require slower moving hardware and software changes.

This year, the team from Mindshare US identified key trends seen on the ground.

sxsW interactiVe 2013 WraP-uPsxsw interActiVe begAn As the multimediA POrtiOn

Of the sxsw film festiVAl bAck in 1994.

neil carty, JOe MigliOzzi, gabe Misarti, Mark eVans, sMita allex, Meg O’brien

current trends On the hOrizOn require slOWer MOVing hardWare and sOftWare changes

POV: 2013

16

trends:

1. Brand as Narrator: Austin hosted a slew of panels focused on storytelling and positioning brands as characters with a unique voice and as the narrators. Using specific tactics to get that story across must be taken into account as well as developing rich character arcs early on in the content strategy and development process.

2. Behavior Design: The use of technology to stimulate small changes in our behaviour that over time leads to life changing habits. This trend is closely tied to the “Quantified Self Movement” via wearable technologies (Nike Fuel, Fit Bit, Jawbone UP) as well as an overarching trend in the adoption of iHealth devices.

3. Digital Health & Wearable Technology: Continuing the trend that began with the iHealth devices at CES, there were a large number of digital health sessions that gave perspectives on navigating the pitfalls of health data compliance in an increasingly digital/social world.

4. The Future of 3D Printing: Bre Pettis of Makerbot kicked off SxSW with a keynote focusing on the future applications of 3D printing. The company announced a technology that models objects up to 8” in height into digital 3D models. This move turns the company from a 3D hardware company into a 3D ecosystem. More importantly, the innovations 3D printing will drive in manufacturing, rapid prototyping and biotech printing are immense.

5. LoMo With A Side of So: There were a lot of conversations around location-based mobile and how companies can get better at using data on a more localised level to have more relevant conversations with their audiences. Facebook and Google focused on how the mapping/check-in data can be aggregated into more social sharing functionality. In addition, social mapping app, Plotter won the SxSW Accelerator competition.

6. Promotion of The Startup Ecosystem: City governments vied for attention this year as they looked to promote their own growing tech/startup ecosystems. Representatives from Silicon Valley (SF), Silicon Alley (NY) Silicon Prairie (Midwest), Silicon Beach (LA) and Las Vegas (SxSW V2V) were all in attendance. Which will be the next to emerge? Our bet is Detroit, with its ties into the automotive industry, low real estate prices and the rise in in-auto technology.

7. Crowd-Sourcing Transportation Solutions: An ongoing trend at SxSW has been crowd-sourced transportation solutions. Travelscout was a new app that launched around SxSW that gives users every possible option to travel between destinations with the goal of decreasing the number of cars on the road. This also follows other apps including SideCar and Lyft, where ride sharing is a central theme in the app. Waze is a leading social network for drivers that facilitate the sharing of current road conditions and destination information, all in real time.

8. Local Content Curation: With the fragmentation of TV viewership and consumers viewing more and more content on their mobile devices, companies like Local and Narratively have emerged to help viewers curate news based on location. Both in their web-based and mobile experiences, users can localize news, entertainment and sports content based on their geographic location, drilling down as far as the city level.

9. The Chameleon-isation Of Tech: As seen at CES and followed at SxSW, companies that provided technologies to help weather-proof devices from water, sand and the elements were everywhere. Technologies ran the gamut from heavy duty casing to spray on waterproofing adhesives.

10. Big Data, Big Data, Big Data: One of the hottest topics for brands is what to do with the onslaught of data that is now available to them. The data landscape has changed immensely in the past few years and chances are it will continue to change at an accelerated rate. The conundrum of big data is that it is largely disjointed – both in source methodology and analysis. Brands and agencies are searching for a way to not only make the mounds of data meaningful, but to find a way to use it in real time to impact their strategy and business.

11. The Return of Analogue: Today, many of us consider our mobile devices as our default screens. As a result, consumers are re-embracing the analogue world. Some call it a “digital backlash” while others believe it to be the next iteration of retro cool. A number of Kickstarter projects were circulating analogue projects like Lomography and Projecteo. One panel in particular focused on Creating Digital Keepsakes in an Analogue World. Another, hosted by JWT highlighted a recent study, Embracing Analogue. While it’s unlikely we’ll experience a full-fledged backlash, brands need to think about complimenting their digital experiences with the tangible to remain relevant.

POV: 2013

17

backgrOund

Twitter recently acquired We Are Hunted, a software company whose search algorithms are built to aggregate popular new music. We Are Hunted’s music discovery service was accessible by web, iOS, Android and Spotify apps. Twitter is using this software to develop its own standalone music discovery and streaming service and will leverage its existing relationship with SoundCloud for the streaming element. The service will be called Twitter Music and will be launched as a standalone iOS app very soon. When you load up the app for the first time, Twitter Music will suggest that you sign in using your Twitter account – your experience will then be personalised based on your Twitter social graph. It’s rumoured that there will be four main tabs in the app: ‘Suggested’ will recommend tracks for you based on artists you follow and artists other users you follow are following. The hashtag ‘#NowFollowing’ will aggregate tracks tweeted by people you follow when they use it – meaning you can recommend tracks easily to your social graph. ‘Popular’ will bring in songs that are trending, and ‘Emerging’ which will bring in tracks from up-and-coming artists. If you want to learn more about an artist, you’ll be able to click through to a short bio and play other tracks on their SoundCloud account. You’ll also be able to follow artists on Twitter directly from the app.

tWitter tO launch Music serVicein JAnuAry, twitter lAunched Vine, A six secOnd

(Or less) VideO shAring serVice. nOw it is set tO

lAunch A music serVice. eight Out Of ten Of the

mOst fOllOwed AccOunts Are musiciAns.

sasha hudsOn, Ollie killick & daVid nOrris

iMPlicatiOns

This is a highly competitive market. Facebook recently launched its OpenGraph technology which enables services like Spotify and SoundCloud to heavily appear in news feeds, and Google has confirmed that it is looking to introduce a music subscription service of its own. Spotify recently hit six million Premium subscriptions, and there are many other major global music streaming services such as Deezer, Napster, rara.com, Music Unlimited and Xbox Music. It is not yet known whether Twitter will charge subscription fees to use the app, but it has been refining its commercial model recently, with revenues forecast to increase to $1 Billion by 2014; 58% of this from mobile. Vine videos have enriched the promoted tweet product – brands like GE and Gap have been using Vines within promoted tweets. It’s possible that Twitter will encourage the music industry to use Twitter Music in a similar way to promote new tracks, or it could even look to generate revenue from paid downloads or commissions on ticket sales.

suMMary

This move by Twitter highlights another example of a world where music and media are converging. Leveraging Twitter functionality and scale with SoundCloud for content should – in theory – make both media brands stronger and enhance the experience for the end user. The ambition to keep people in Twitter makes perfect sense and harnessing content (Twitter Cards, Vine and now Twitter Music) will do that. Twitter Music looks like the focus will be more fun (than serious muso) where you can easily find a new tune, and for people to dip in and out. The company is looking to integrate more content into its platform to raise engagement. As a brand this will no doubt open up sponsorship integration opportunities – Twitter Music Charts, etc. - but also the ability to use SoundCloud with scale – which for the right brand and brief when combined with this functionality could be very powerful.

as a brand this Will nO dOubt OPen uP sPOnsOrshiP integratiOn OPPOrtunities

eight Out Of ten Of the MOst fOllOWed accOunts are Musicians.

POV: 2013

18

facebOOk hOMeAfter yeArs Of rumOur lAst week finAlly sAw

the releAse Of the fAcebOOk PhOne.

ciaran nOrris

backgrOund

Except it wasn’t a phone at all, rather a phone running Facebook Home, an application which changes many aspects of how the phone operates. Rather than get involved in a lengthy, and costly manufacturing and development battle with Apple, Android and all of the device manufacturers, Facebook has decided to take a short-cut in its attempt to rule the mobile web.

The elements of Home that have generated the most comment are the Cover Feed and Chat Heads. The first swaps out a phone’s lock and home screens for live versions of the owner’s News Feed. Chat Heads allows people to use Facebook’s messaging services even when using another app. Both of these highlight how tightly integrated Facebook is in the new system, replacing or overlaying on top of previously core functions.

Whilst the new system was previewed on a mid-priced new HTC Android phone, it will be released through Google Play and available on a wider variety of handsets overtime. Facebook clearly has designs on the hundreds of millions of Android handsets worldwide. There will be no Apple equivalent, as Apple would never allow such tinkering with its core product.

iMPlicatiOns

Facebook’s Mark Zuckerberg has claimed that Home will help sell more Android phones. However the fact that it was launched on a phone retailing at $99 suggests that in fact Facebook is using Android’s mass-market dominance as a Trojan Horse; this isn’t something aimed at the early-adopters – it’s for those for whom Facebook essentially is the Internet.

This is a clear play by Facebook to try to replicate its dominance of the desktop web on mobile devices – many put its disappointing IPO down to the fact that it wasn’t adapting to mobile quickly enough. It’s certainly an ambitious and aggressive move, potentially building up its already massive data pools, and enabling it to create truly personalised ad opportunities with mobility at their core. Some have suggested that Apple will be forced to start to mimic the flexibility of the Android platform in order to allow people to download Facebook Home, but it could equally have the entirely opposite effect.

The recent move to align Android and Chrome under one team, following the departure of founder Andy Rubin, could have many reasons. But one could be that it is starting to become hard to see how Android materially benefits Google’s bottom line. Samsung & Amazon barely mention Android anymore, China’s fastest growing mobile company uses it, yet most of Google’s services are banned or limited in that country, and now one of Google’s biggest competitors has launched a product that could well cut Google’s products out of the picture.

suMMary

Facebook’s mobile strategy is now clear to see: try to dominate the platforms from within, rather than replicate them. For advertisers who have invested heavily in Facebook up till now, this could well offer opportunities to start to take their messages to every-day phone-owners as they go about their day-to-day.

But equally Facebook’s ambitious attempt to take-over the main parts of the mobile experience could well back-fire, whether due to consumer concerns about the amount of data Facebook will now have access to, or because Google decides it is no longer interested in building its competitors’ businesses as well as its own.

this isn’t sOMething aiMed at the early-adOPters – it’s fOr thOse fOr WhOM facebOOk essentially is the internet.

POV: 2013

19

backgrOund

“Keyword targeting in timeline” allows brands to show ads to users who have tweeted or interacted with a tweet that contains specific words and phrases. This new functionality gives advertisers a paid search style model within Twitter similar to Google’s.

tWitter brings keyWOrd targeting tO sOcialtwitter hAs AnnOunced A significAnt enhAncement tO

its PrOmOted tweets.

The process works in a similar way to paid search. Advertisers create a keyword list, set a bid, and when a user tweets or interacts with a tweet that uses words that match something in the keyword list, they are served an ad. Unlike search, the user is not served the ad immediately; instead, it will show up in the user’s timeline within the next several minutes. For example, Bob sends a tweet about looking for a new computer. If Dell has the words “new computer” in its keyword list, the next time Bob refreshes his timeline he gets served a Promoted Tweet from Dell. Further, if Bob does not send a tweet, but instead interacts (replies, favorites or retweets) with someone else’s tweet that references a “new computer,” he could also be served a Dell Promoted Tweet.

Twitter will launch keyword targeting with two types of keyword matching:

• Phrase Targeting – A series of words in the exact order, with no words in between.

• Unordered Match – A series of words that appear in any order, with words in between.

These targeting options are not as robust as Google or Bing, but they are a good first step. Twitter will offer some keyword tools at launch to help marketers with word tenses and plurals. Also, bulk keyword management is supported immediately. Users of Buddy Media and SHIFT will see the changes incorporated into both technologies within the week. The biggest issue with match types is the lack of negative keywords. In SEM, negative keywords keep brands from wasting spend on irrelevant queries or being associated with unfavorable keywords. In social, there is an additional use: sentiment. Twitter will use an algorithm to help identify negative sentiment within a tweet, but language interpretation can be extremely hard for an algorithm, particularly when hashtags are involved. It is easy to see how an algorithm could miss the nuance of a tweet such as: “Can’t wait to eat at McDonald’s again! #notreally #neveragain.” The addition of negative keywords should help to ease these concerns, but there may never be a 100% accurate sentiment solution.

Ollie killick &

Jesse WOlfersberger

these targeting OPtiOns are nOt as rObust as gOOgle Or bing, but they are a gOOd first steP

suMMary

Even with concerns about match types taken into account, keyword targeting in timeline is a win for marketers. Keyword targeting in timeline will allow advertisers to quickly respond to users whilst the interest is still there, and will prove especially valuable in when used in conjunction with Twitter’s other targeting tools.

keyWOrd targeting in tiMeline is a Win fOr Marketers.

iMPlicatiOns

Keyword targeting in timeline is a smart move by Twitter that will further enhance the appeal of Promoted Tweets. Performance remains to be seen, but, in theory, keyword targeting will be a large boost to the efficiency of Promoted Tweets. Twitter is now a “pull marketing” platform where the user first expresses intent. Maybe most exciting, marketers can still make use of three targeting options – location, device and gender – in conjunction with keyword targeting, this gives a great level of relevance. The enhancement also allows for scale and speed of what was once a very manual process – responding directly to Tweets. It will allow marketers to have larger keyword lists and to serve ads to users within minutes of their tweet.

POV: 2013

20

backgrOund

On 18th April 2013 Twitter launched its much anticipated stand-alone, free ‘Twitter #music’ service, either on music.twitter.com or a downloadable app from the App Store. The service has been created to help people find music on Twitter, based on the artists they follow or from across the network, by using existing user-generated Twitter activity (such as Tweets and other engagement) to spread the most popular singles and emerging artists.

The app currently uses three sources: Spotify, iTunes and Rdio, although this is expected to expand in the near future. Users will only hear previews in iTunes, yet those with a Spotify or Rdio account can log on to hear the full track. #NowPlaying will show users all the songs being tweeted by musicians they follow, whether they are famous or not. You can discover more about artists by finding and following them, uncovering who they follow and share tracks as you listen to them, all of which will ultimately lead to more music discovery. As expected, Twitter #music encourages instant sharing, therefore users can tweet what they are listening to directly from the platform.

The service is available on the #music site or in app format, on Apple iPhone and iPad devices in the US, Canada, UK, Ireland, Australia and New Zealand. Along with the expected launch in other markets, it is also expected an Android version will follow soon.

tWitter launches Music serVice - uPdateOn 18th APril 2013 twitter lAunched its much AnticiPAted

stAnd-AlOne, free ‘twitter #music’ serVice, either On music.

twitter.cOm Or A dOwnlOAdAble APP frOm the APP stOre

sasha hudsOn

iMPlicatiOns

Twitter’s move into the music world could be part of its attempt to reposition itself as an entertainment online hub, according to reports. It is moving from short snippets of content (the maximum of 140 characters in a tweet or Vine’s six seconds of video), which allows it to compete with Facebook and its multimedia social network that has been in progress over the past two years. Furthermore, the unique feature of finding new tracks and emerging artists separates Twitter from the competition; it is not a free music streaming service, but a discovery service.

Since the launch there have been mixed reviews of the service with music analysts debating whether it is enough to make users choose Twitter over Facebook, and how much value it adds onto the already existing platform. Twitter works with iTunes, although Twitter #music directs listeners to streaming services rather than to Apple’s iTunes to buy songs, potentially causing problems. In addition, U.S. streaming service Pandora is not yet one of Twitter #music’s partners.

Right now there are no advertisements featured on either the website or the app, although it can be assumed that this will follow to create a better marketing platform, enabling brands to tap into targeted audiences. Until then, the platform can an informer on what’s happening in social media surrounding music and platform a way for potential adaptive marketing and to encourage credibility.

suMMary

Twitter offering a music service is a ‘sound’ move. More than half of all users on Twitter follow a musician and eight out of the top 10 most followed people are musical artists. People share and discover music all the time, Twitter #music just makes this easier. It is also a useful platform for the artists to engage with their fans and to encourage recognition for new, emerging artists.

However, it can only feature 30-second snippets. Users then have to transfer to Spotify or Rdio to listen to the full-track. So, expect to hear a boom in 30-second (or less) tracks, and reworked edits.

This adds some value to Twitter, consumers will play with it and it’ll go down well with the music industry – they can push their music as well as their artists.

Many companies have tried and failed to tap into the social music industry. An example could be Apple’s Ping service, which was built into the iTunes software that promoted music it thought users may like. Apple closed it after two years.

Let’s see if Twitter has got it right. We think this is a step in the right direction.

POV: 2013

21

facebOOk’s neW VideO adsOnline VideO AdVertising is grOwing glObAlly, mAny

PlAtfOrms Are lOOking tO cAPitAlise On this OPPOrtunity

And tO cAPture sOme shAre Of tV AdVertising reVenue.

Marta MattiOli, ruth cOrrigan,

eridani baker backgrOund

Among these platforms, Facebook is looking to launch a new video ad format later on this summer. There has been no official announcement as yet, but it is rumoured that the video ads will appear in the newsfeed and auto-play without sound. It will then be possible to activate the audio and the video will restart from the beginning. Each video will last a maximum of 15 seconds, suggesting Facebook has taken note of Vine’s offering – which is limited to a 6 second video format.

A small number of big brands will be part of the initial trials, including Unilever, Nestlé, Ford, Diageo, American Express and Coca-Cola. To create more impact (at least at the beginning) users will only see video content from one of these advertisers in any one day. The ads will be bought on a cost per thousand basis with rates predicted to be in the low $20s, a cost per engagement model is not currently being considered.

iMPlicatiOns

Facebook has up to 70 different ad types already, so what will make this new format stand out from the rest? It allows Facebook to tap into the rapidly expanding online video advertising market - 41% growth Y.O.Y, US 2012. The new ads are expected to generate up to US $1.5m new daily revenue and up to $4m per day by the end of the year.

Some brands, such as Unilever and Volvo, have already conducted research into how TV and social video can link together to drive lifts in brand awareness and ad recall. Facebook’s new video format will offer a new source of consumer data for advertisers that can feed into such research.

The customary consumer uproar that accompanies the launch of ad products on social platforms will undoubtedly ensue; the auto-play feature is likely to be the most talked-about change. There is also the possibility that users could learn to ignore the ads as they will be easily identifiable as ads. This problem could be avoided if Facebook makes the ads work in the same way as sponsored stories, as users are more likely to watch a video which has been validated by their friends first.

suMMary

Consumers naturally share video on Facebook, so the introduction of video ads in the newsfeed seems to be a natural addition to the social giant’s large bank of ad formats. There is no mention of whether this video format will extend beyond desktop, but with large volumes of people now watching video on their mobile and Facebook beginning to prove its revenue potential through the channel (30% of its revenue in Q1 this year was on mobile), it is likely to be in the plan.

it is ruMOured that the VideO ads Will aPPear in the neWsfeed and autO-Play WithOut sOund

each VideO Will last a MaxiMuM Of 15 secOnds, suggesting facebOOk has taken nOte Of Vine’s Offering

POV: 2013

22

backgrOund

As a result Apple’s share price has dropped and its stock market value has tumbled by 40%. Has the post-Job’s Apple finally lost its shine?

taking a bite Out Of aPPleAPPle hAs recently been under intense Pressure As

cOmPetitOrs, PArticulArly gOOgle And sAmsung,

cOntinue tO gAin mArket shAre by intrOducing new

And highly cOmPetitiVe PrOducts.

nOrM JOhnstOn

iMPlicatiOns

Apple’s CEO Tim Cook hinted this week that Apple has some big plans for Q3 and a solid line-up for 2014. Apple’s relative silence during its recent stock price plummet may in fact indicate a quiet confidence in its future product releases. Of course it doesn’t hurt to have a massive cash reserve of $137bn to weather the storm. The key question is what are those Q3 and 2014 plans?

Speculation is rife that Apple, while still iterating and improving on its existing product portfolio, has moved on to the next big thing and is quietly preparing to disrupt yet another industry. Pundits have long speculated that Apple is due to launch its own TV set, a highly cluttered and competitive market with tough margins and all kinds of broadcasting and content legal challenges. However, the TV set remains the one screen in a multi-screen ecosystem where Apple doesn’t fully play (note: the current Apple TV product has an Apple EPG and streaming ability to your existing TV). Don’t bet against Apple redefining the TV experience.

A second area of speculation is an iWatch wristband; the long-mooted Dick Tracey phone watch may actually be functioning somewhere in an Apple lab. An Apple watch would capitalise on the recent wearable tech craze (Jawbone, Nike Fuelband, Google Glass) and could port iTunes content, Siri, Facetime, and of course your phone to your wrist. It’s the type of disruptive, jaw-dropping product Steve Jobs would have loved.

On the other hand, Apple may be preparing to simply improve its iOS experience, and unleash new, graphene-powered, memory-boosted iPhones and iPads. With Samsung’s new Galaxy S4 giving Apple a run for its money, an upgrade beyond recent releases may be necessary to defend its share.

suMMary

Apple has excelled in disrupting and defining industries with its technology. CEO Tim Cook has hinted something is on the way; Steve Jobs may have planned a few more surprises for us. Stay tuned. an aPPle Watch WOuld

caPitalise On the recent Wearable tech craze

Given that the early adoption phase for smartphone, tablets, and phablets is now over in many markets, it should come as no surprise that Google’s Android OS is gaining share as HTC, LG, Motorola and others battle over the mass market audience, which has never been Apple’s natural customer base.

Apple’s business has been built on a disruptive smaller volume, larger value approach compared to Google’s larger volume, lower margin formula. Apple’s strategy is threefold: 1) create brilliant and connected products in a largely closed ecosystem; 2) appeal to early adopters and latent followers with enough cash to pay for expensive devices; 3) squeeze incremental revenue through services, applications, and to a lesser extent advertising. To put things in perspective, consider that Apple makes a $368 profit for each iPhone while Google makes roughly $10 per phone. Furthermore, Apple makes 30% from sales of iTunes applications compared to Google’s measly 5%. Sustaining such margins was always going to be difficult; Apple’s most recent Q2 2013 results indicate that even with decent sales of iPhone and iPads, the company suffered a Y.O.Y. quarterly drop in net profit to $9.5bn compared with $11.6bn last year.

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Things have certainly started looking up at Yahoo, with the company making a number of acquisitions, releasing improved earnings, making content announcements, and generally making more noise in the market than it has done for some time. But does this mean things have really turned around?

Where next fOr yahOO?mAny felt thAt yAhOO’s decisiOn tO APPOint ex-gOOgler

mArissA meyer wOuld result in A surge in its fOrtunes.

Since coming on board, Meyer has signalled a renewed focus on product. Flickr, which probably should have seen success on the scale of Facebook & Instagram, but had been unloved for years, has been given new focus and a sharp new app. Ditto weather. The start-up news aggregator Summly was snapped up for $30 million and, within weeks, some of its features were baked into Yahoo’s main apps.

On the media side, Yahoo hasn’t abandoned its plans to be a media and a tech company, announcing a raft of new exclusive programming, as well as deals with ABC and Saturday Night Live to replay their content across its properties. At the same time, Yahoo has announced new ‘native’ ads that will be matched to the device and content type the audience is consuming. And all of these would appear to be feeding into results, with the share price up 50% since Meyer joined.

But much of this financial success is due to the fact that Yahoo has a 24% stake in the Chinese company Alibaba, as well as 33% of Yahoo Japan, which is in a much better place than the core business, whilst the inability to finalise a deal to buy video site Dailymotion (though the blame for that lies with the French government) shows that it’s not all going to be plain sailing. As one analyst put it, “If you own Yahoo (stock) for Alibaba, you’re doing just great…(but) if you own it for the core business, you’ve got some speed bumps.”

ciaran nOrris

the rebOrn flickr is, Once again, a truly great PrOduct. but it May Just haVe tO Make dO With Playing secOnd fiddle tO instagraM

iMPlicatiOns

Yahoo is still a massive company, and one with millions of loyal users around the world: its Mail & News services are still the dominant players in their sectors in many markets. But in a world increasingly defined by search, social, video, data and mobile Yahoo has struggled to provide a USP other than its scale and legacy. There is no doubt that Meyer has brought a much needed focus to the company, and if nothing else, has managed to create good news stories about the company – important in an industry that often works from feeling as opposed to logic

But the question is whether she will ever be able to do enough to truly turn the company around and push it back to the top of the pecking order. Metacafe would have been a great opportunity, and it is a great shame that the deal couldn’t be done. The reborn flickr is, once again, a truly great product. But it may just have to make do with playing second fiddle to Instagram, which essentially stole the market flickr created. And as for search, the alliance with Bing hasn’t provided much of use to either party as yet, with most of Bing’s gains in the US coming at its partner’s expense.

It may well be that Yahoo is just going to have to get used to being a very good second or third best. As display revenues for its core brand are currently going backward, that would actually be a pretty good outcome, though it may not be enough to satisfy Wall Street.

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Whilst nowhere near the company it once was, Yahoo is definitely looking better than it has done in some time. But in a world where Google, Amazon, Apple and Facebook are continually developing their software, hardware and services, Yahoo is unlikely to ever scale such heights again. The media world needs diversity, so we should all hope for Yahoo’s resurgence, even if we should accept stabilisation.

POV: 2013

24

saM reid

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At 9:17am on Wednesday 8th May, Manchester United’s Press Office (@ManUtd_PO) sent out a short tweet explaining that Sir Alex Ferguson had retired as Manchester United manager after 26 and a half years, accompanied with #ThankYouSirAlex.

Within the hour the tweet had been repeated 18,000 times and there were 1.4m mentions of the story on Twitter, taking eight of the 10 UK trending topic spots, and four of the 10 worldwide trends. In an era where brands want, and need, to be part of the consumer conversation, this was the perfect opportunity to capture the moment.

fergusOn retiredthe end Of An erA: sir Alex fergusOn’s retirement

And hOw twitter, the reAl time infOrmAtiOn netwOrk,

cAPtured the mOment #thAnkyOusirAlex

brands nOt Officially assOciated With Manchester united Were free tO PrOVide the tyPe Of reactiVe Marketing that this stOry allOWed.

iMPlicatiOns

Ever since Oreo released details of its ‘Dunk in the Dark’ activation, explaining that the brand had a whole host of creatives and clients in a room watching the Super Bowl, the emphasis for brands has been how to maximise the ‘in the moment’ activity. Brands that simply prepare and activate content calendars planned weeks in advance will quickly start to fall behind in social, and the emphasis will be on immediate response. Sport is a live show, so brands must be prepared to activate at a moment’s notice.

sPOrt is a liVe shOW, sO brands Must be PrePared tO actiVate at a MOMent’s nOtice.

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The activations by Nando’s and Paddy Power just go to show that, given the right messaging and adding value to the conversation, timing is everything. Sir Alex Ferguson’s retirement cannot be compared to Oreo’s Super Bowl activity (a planned event), but it is just another example that social media, and especially Twitter, is the perfect environment in which brands should play if they wish to join the consumer conversation – however it is key that they activate in a way that cuts through the clutter and captures the moment.

details

Brands that have an official affiliation with Manchester United would have a legitimate reason to join the Twitter conversation, demonstrating their partnership with the club and providing an authoritative opinion. Some sponsors decided against activating in the social space, which is no criticism. Given the huge interest on Twitter, perhaps some brands felt they that would refrain from commenting as they wouldn’t be adding value to the conversation. However, those that did activate lacked the imagination required to cut through the clutter – SHARP mentioned an unofficial Manchester United twitter account in their message, whilst Thomas Cook’s #SirFergieHoliday didn’t capture the public’s imagination (4 RTs).

Brands not officially associated with Manchester United were free to provide the type of reactive marketing that this story allowed. Nando’s kept their Manchester restaurants open for an extra five minutes yesterday evening, calling it #NandosFergieTime. The announcement garnered in excess of 16,000 RTs (about half the number @ManUtd_PO received), whilst mentions praised and endorsed the restaurant chain; there has since been subsequent national PR from the activity

Paddy Power was at its best on Twitter, releasing light-hearted messages as the day unfolded, intertwined of course with its Next Manager specials. The activation drove over 1,000 new followers on the day, along with sizeable traffic to site.

POV: 2013

25

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They will also receive a discount of 10% on further Coin purchases. Tens of millions of dollars of Amazon Coins will be in customers’ accounts to spend on new apps and games, or to purchase in-app items, such as recipes in iCookbook, song collections in SongPop or mighty falcon bundles in Angry Birds Star Wars.

aMazOn cOinsfOllOwing A recent AnnOuncement frOm AmAzOn, eVery

kindle fire Owner in the u.s. will find $5 wOrth Of free

AmAzOn cOins dePOsited directly intO their AmAzOn

AccOunt.

iMPlicatiOns

Amazon is doing two good things here, encouraging consumers to hit the buy button on new apps, games, and in-app items, and with the likely increase in revenue available, encouraging app developers to develop for the Amazon Kindle platform. Up to now iPad owners, being less price sensitive, have proven most receptive to spending money on, and in, apps. Kindle and Android owners have proven less so, although this is changing fast. Revenue per Android user is 2.5 times more than it was a year ago (Google IO conference May 2013).

Amazon Coins is a great way to promote monetisation and use of the Kindle platform. It also appears to be less complicated than Microsoft’s points system on Xbox marketplace. Amazon has confirmed that it will continue to add more ways to earn and spend Coins on a wider range of content and activities with ebook purchases expected.

This investment in fostering use of the Kindle tablet platform is further proof that Amazon gets it. Amazon and eBay are the e-commerce kings and, by operating on razor thin margins, are not likely to get knocked off their perch or suffer from eventual margin decline that other tech players are currently suffering from. Amazon invented the recommendation engine, which spawned content and music discovery platforms and is now embedding itself into content delivery with Kindle tablets. The Kindle Fire is with us for the long run. Any brand with a tablet strategy, along with iPad and Android, should now also incorporate Kindle.

Amazon Coins could also be used as an encouragement to consume branded content; particularly brands with young audiences that are into social gaming (think FMCG, Mobile sectors). It will also become interesting for brands with more mature and affluent audiences once/ if Amazon Coins are enabled for ebook purchases.

Jay bryan & MassiMO sParVOli

this inVestMent in fOstering use Of the kindle tablet PlatfOrM is further PrOOf that aMazOn gets it.

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Additional opportunities may be found by brands using Coins for incentives: “Get the new Smartphone with 5,000 Amazon Coins preloaded” or for messaging in social channels to drive and foster engagement: “Do you have an Amazon account? Participate in our competition / like on Facebook / re-tweet on Twitter and get 100 Coins for free”.

Let’s be clear here, Amazon Coins is not a virtual currency like Bitcoin, but more like Facebook’s Credits, Tencent’s QQ Coins, or Linden dollars. Coins are not transferable among people, nor are they exchangeable for real currency. Nevertheless, Amazon Coins is a smart way to nudge Kindle Fire users to stay within the Amazon content eco system. Marketers should include Kindle in their tablet strategy and utilise Amazon Coins where appropriate.

any brand With a tablet strategy, alOng With iPad and andrOid, shOuld nOW alsO incOrPOrate kindle.

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It is the biggest move yet by the CEO, Marissa Mayer, following a series of small to mid-sized acquisitions, primarily of mobile apps. It is hoped that Tumblr, which has a relatively young audience, will provide a boost to Yahoo, which has struggled to keep up with Google and Facebook in recent years.

yahOO buys tuMblr.As PArt Of An OngOing strAtegy tO reVitAlise the Once

dOminAnt internet brAnd, yAhOO hAs bOught the POPulAr

sOciAl-blOgging PlAtfOrm tumblr fOr $1.1 billiOn in cAsh.

Mayer has made a series of bold moves since joining Yahoo in July 2012, but this is undoubtedly the biggest. Whilst many will compare it to Facebook’s purchase of Instagram, it differs in one big way; Facebook used stock for a large chunk of its purchase (so ended up paying less than $1 billion after its IPO) whereas Yahoo is using none. Yahoo also appears to have less cash in the bank than Facebook, so it’s a bigger bet in terms of the potential consequences.

It also differs in that Tumblr had already started to monetise its audience, as opposed to Instagram, which still has no advertising. But Tumblr’s ad business is still very young, generating just $13 million in 2012, which is hardly surprising seeing as Tumblr’s CEO David Karp, who will retain control, said in 2010 of advertising “[it] really turns our stomachs.”

Yahoo and Mayer have already stated that they expect to ramp up monetisation, but have promised not to ‘screw up’ the blogging service. The question is whether Yahoo will be able to do one without the other.

ciaran nOrris

it is hOPed that tuMblr, Which has a relatiVely yOung audience, Will PrOVide a bOOst tO yahOO

iMPlicatiOns

Whilst the purchase is being described as brave, it could equally be suggested that it’s a sign of desperation. Yahoo has essentially given up on search and whilst it has belatedly thrown resources at flickr, it’s hard not to feel it missed its real chance with social when it originally bought flickr and del.icio.us (and failed to convince a young Mark Zuckerberg to sell Facebook). It will remain to be seen whether its recent splurge on mobile apps will deliver any real results or whether Yahoo should have simply doubled-down on its Asian investments, which are currently paying many of the bills.

Tumblr may well have a young audience that many advertisers crave, but it is also largely made up of user-generated content, as well as a lot of border-line or straight-up pornography, both of which make advertisers nervous. Young audiences also tend to be fickle, and there is already a lot of noise about users abandoning Tumblr now that it has been bought by the man, or the woman, in Mayer’s case.

If Mayer can convince advertisers that Tumblr has a real place on most brands’ media schedules, she will definitely have earned her keep.

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Predictions of what will happen when it comes to internet buy-outs and mergers are notoriously unreliable, but a few things seem clear about this deal. Yahoo will need to find a way to keep Tumblr’s users, and its CEO/co-founder happy, whilst also managing to make it a more advertiser friendly property.

If Mayer can do that, then Yahoo may well have its very own YouTube, which Google bought for a similar amount back in 2006. But it’s equally possible, if not more likely, that with its fickle audience and hard to monetise content, Tumblr will instead end up being another bebo, or Geocities 2.0.

POV: 2013

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Live-streaming from its headquarters in Redmond, Microsoft has taken a very different approach than Sony in its message, with a strong focus on its credentials as a multimedia entertainment hub, but this has received mixed feelings from the press, developers and fans alike.

MicrOsOft and the xbOx OnemicrOsOft hAs finAlly reVeAled its cOntender in

the uPcOming cOnsOle wAr, the xbOx One.

Microsoft is aiming its hardware to be an all-in-one hub of the living-room entertainment experience. The Xbox One is designed from the ground up to seamlessly switch between games, live TV, and films at a press of a button or a wave of your hand. Packaged together with the Kinect 2.0, Microsoft has ramped up the functionality of voice control and weaved it throughout the whole Xbox experience. This makes it a very powerful tool once you throw Skype video calling, Smartglass and its new multi-tasking capability, Snap Mode, into the mix, enabling users to second-screen on their main screen.

Live TV played a big part in the reveal, as Microsoft demonstrated the Xbox One’s ability to be integrated with live sports, giving real-time data on players and even updating fantasy sports leagues. However, outside of the expected parade of several large-scale game franchises (Madden, FIFA, Call of Duty), very little was actually said on games (declining to even show any live gameplay on stage) as Microsoft looks to this year’s E3 to finish the second half of its marketing message.

saM kerr

MicrOsOft is aiMing its hardWare tO be an all-in-One hub Of the liVing-rOOM entertainMent exPerience.

iMPlicatiOns

Microsoft is actively courting publishers and advertisers with the Xbox One, in stark contrast with Sony’s approach of courting developers and gamers. Microsoft will be looking to replace set-top boxes and PVRs and it’s likely that the console will be packaged together with entertainment provider packages, opening it up to a much larger market of non-gamers. Alongside the Kinect 2.0, which offers more opportunities for innovative campaigns, from gesture and voice control to the bio-metric feedback of heart rate and skin temperature monitoring from the camera itself, the Xbox One is an interesting play for advertisers.

As always, Microsoft has taken a very US-centric approach at the outset, with many of the new features geared towards live TV viewing and sports content. Whilst this may be a recipe for success in North America, it will need a wider variety of market-relevant content and partners in the rest of the world in order to remain attractive. Also, in an age of time-shifted viewing, streaming media and multiple screened mobile devices, is Microsoft offering something truly revolutionary? Do we as consumers want to make Skype calls from our TVs rather than our tablets or mobiles?

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Sony and Microsoft have two diametrically opposed philosophies. The Sony PS4 is geared towards gamers, with strong support for independent titles, user-generated content driven features and a more global approach, all thanks to a singular focus on gaming.

The Microsoft Xbox One is instead aiming for a much wider audience, positioning as a big and bold multimedia hub that only just does everything, but runs the risk of having many of its new core features only be relevant to a smaller number of markets at launch. However, Microsoft is playing a bigger game and instead of viewing Sony and Nintendo as its long-term rivals, Microsoft is looking beyond gaming to challenge Apple, Google and PVR suppliers over control of the TV and the lucrative advertising dollars that come with it.

One big trend to take note of is that we’re seeing the big console manufacturers moving further towards a purely service-based business model. This is likely to be the penultimate console generation before the big three stop producing dedicated hardware and focus instead on providing services across publisher agnostic hardware.

POV: 2013

28

We’re seeing the big cOnsOle Manufacturers MOVing further tOWards a Purely serVice based business MOdel.

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Six years into the iPhone and five years into the App Store, the smartphone landscape has changed and Apple, for the first time, faces real competition from Samsung and the domination of Android in the market. The new iOS has received mixed reviews from the tech world, the press and die-hard Apple fans, not to mention ruffling the feathers of the music streaming world with the announcement of iRadio.

aPPle iOsthe debut Of iOs 7 is An imPOrtAnt milestOne fOr APPle

Apple has flattened the interface, taken away the quirky faux wood and leather icons, and made a concerted effort to not waste space or time by having greater synergy between hardware and software design. Multitasking, a Control Centre, improved Safari functions, Camera and Photo upgrades and platform integration are just a few of the developments. The biggest however is the introduction of iRadio, which gives a Genius-like experience to the entire 26-million title iTunes catalogue. You can see the full list of songs on each station by clicking history, with purchase and preview buttons built in to send you to the iTunes store. iTunes Match users will get an ad-free experience and anyone without iTunes Match will be able to use the app for free with a few audio and text ads. Other developments included: iOS7 enabling you to use an HDTV as a second display using Apple TV and AirPlay; Siri given a new look, with a new voice and in a step away from Google, iOS7 will now pull in data from Twitter, Wikipedia and Bing.

Vicki WatsOn

the neW iOs has receiVed Mixed reVieWs frOM the tech WOrld, the Press and die-hard aPPle fans,

iMPlicatiOns

Apple’s announcement will have far reaching implications for social networking, consumers and game and app developers. Photos and videos are what people want to engage with on social networks, (e.g. rapid rise in Vine), and Apple has put photos in the centre of the new iOS. With the ability to create a shared photo stream, the iOS platform becomes like a social network itself. Twitter is more deeply integrated in the system, where shared links in the safari browser will let users see all the URLs in their twitter timelines. The well-known security barriers surrounding social login are reduced with new iCloud Keychain, which stores information on iCloud and then syncs across trusted iOS based devices. As for the new Safari web browser which unifies Google search and your own search history, we can expect to see an impact on mobile search and display advertising. Perhaps the new full-screen look could increase click-through rates? From a music standpoint, Spotify (and Pandora in the US) have reason to be concerned about the new streaming music service, which enables users to create custom radio stations while discovering new music and integrating with social networks. In the gaming world, implications are equally as big. For the first time since 2008, Apple is removing barriers which have previously stopped third party game controllers from gaining popularity by opening up iOS to them, enabling console-like gaming experiences to be powered by its mobile devices. With all of this, who’s to say that Apple won’t next march into the home console market? Given Apple’s dominance of handheld gaming and the fact that the new 16GB iPod Touch and Apple TV are growing in popularity, Sony and Microsoft could have more than just each other to worry about. Definitely a big watch out for our gaming client’s future plans. Finally, due to being able to have multiple apps opened at the same time, each individual app may not have the user’s undivided attention.

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Many of the features are geared towards making the smartphone the essential device with which you cannot leave home without- your keys, your phone, your wallet, your map. Apple is ready to disrupt businesses again and established platforms and businesses like Spotify and Microsoft need to keep innovating to avoid Apple swooping in and stealing their lunch.

iradiO giVes a genius-like exPerience tO the entire 26-MilliOn title itunes catalOgue.

With the ability tO create a shared PhOtO streaM, the iOs PlatfOrM becOMes like a sOcial netWOrk itself.

POV: 2013

29

facebOOk siMPlifies ad OfferingfAcebOOk hAs becOme A cOmPlex ecOsystem fOr AdVertisers

tO nAVigAte due tO the PlethOrA Of Ad units AVAilAble,

hOweVer thAt’s All AbOut tO chAnge.

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Facebook announced last week that it will be cutting back its ad products over the next six months, and Sponsored Stories, accounting for over half of the ad types available, will be among the first to go. Advertisers might be surprised that Sponsored Stories will be disappearing as they have been proven to have higher engagement rates than regular Facebook ads. However, rather than completely disappearing, Facebook will be applying the social context layer that makes Sponsored Stories so successful into all of its ad types, creating a simpler product offering designed to deliver business results.

The overall idea with the changes is to give brands fewer, but better, options when it comes to advertising on Facebook. A lot of the changes are based on feedback received from marketers about Facebook’s ad products, where simplification was one of biggest issues raised.

Also facing the chopping block is Facebook Offers, an ad product that allows brands to post discounts and offers to their customers on their Facebook Page. Offers has been usurped by Page Post Link Ads, which has been shown to be more effective for direct response offers. Questions Ads will also become redundant because it is more convenient for brands to ask questions and collect replies via a post’s comment field.

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Advertisers will surely welcome the streamlined ad offering from Facebook as an easier way to find and engage with their target audience on the popular social network. Although some brands will be sorry to see Sponsored Stories disappear, the addition of social context to all of Facebook’s ad types will mean that all Facebook ad campaigns should see a boost in engagement.

The changes are part of a wider refresh of the News Feed, which will become more visual, less cluttered and provide a seamless experience from desktop to mobile. By Q4 2013, Facebook plans to give all ads on the platform a similar look and feel, which will make it harder for brands to stand out and place a greater importance on brands to build ‘likes’ and adopt robust social posting strategies.

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It would seem that Facebook has finally taken a breather from launching new ad products at a breakneck speed and is pausing to take stock of its current situation, which sees brands overwhelmed and struggling to find their way in the complex Facebook advertising ecosystem and users being fed up with a cluttered News Feed. The changes will create a better experience for both the advertisers and users alike, ensuring that Facebook remains the social media destination of choice.

the changes Will create a better exPerience fOr bOth adVertisers and users alike

eriadani baker

Maxine haMiltOn

laura MurPhy

the additiOn Of sOcial cOntext tO all Of facebOOk’s ad tyPes Will Mean that all facebOOk ad caMPaigns shOuld see a bOOst in engageMent.

POV: 2013

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After an optional adoption period and beta testing, on the 5th of June YouTube switched to a mandatory use of One Channel for all users. The aim in YouTube’s own words is to “evolve from a video-based site to a channels-based site, where subscriptions rule.”

yOutube One channeleArlier this yeAr yOutube begAn the rOll Out Of

its new chAnnel design cAlled One chAnnel.

One of the main changes is the new dynamic layout making channels look good on any browser used, across all screens and devices, allowing you to customise how to organise your videos and playlist so it fits your audience in the best way.

Activities available for the new channel include:

• Creating a trailer which will only play for new visitors who are not yet subscribed to your channel

• Channel Art, which makes it possible to create a header ( at 2560 x 1440), to give the channel a visual identity and it also allows you to integrate your social links better than you could before

• Organising videos and playlists on the channel into ‘sections’ with various layouts to highlight your best content

• InVideo Programming in the form of interactive tiles that lead both to your channel (if being watched off channel) and feature a video of your choice making it easier to pull consumers through your brand content

• New Social buttons will allow users not only to easily subscribe to your channels it will also allow them to easily connect with your social networks such as Instagram, Facebook and Twitter

Maxine haMiltOn

eridani baker

yOutube nOticed a 20 Percent Page VieW increase On channels that had already OPted in befOre the 5th Of June.

iMPlicatiOns

The new features with One Channel should help advertisers better engage their target customer base by encouraging and emphasising channel subscriptions, allowing advertisers to create a community on YouTube. YouTube noticed a 20-percent page view increase on channels that had already opted in before the 5th of June.

The trailer activity is a great way to awaken interest in new visitors and win a new subscriber. Because the trailer is only shown for new visitors the trailer should be treated as if it were an ad – keep it short and engaging and have a compelling call to action at the end. The benefits when it comes to users that have already subscribed are that you will be able to easily expose your brand messaging to subscribers at regular intervals and create stronger brand enthusiasts. YouTube subscribers are highly engaged and likely to share content with friends, they are potentially strong brand advocates which is why it is important to try to get users to subscribe. Recent research from YouTube shows that subscribers tend to watch twice as much video as non-subscribers, so having a good video strategy is important to be able to foster real engagement around a brand.

The Social buttons which are placed on the channel header give a clear call to action and are aimed at getting viewers to learn more about your brand join and start conversations. In addition to the social buttons you can also add extra links to the header in order to drive traffic to your website or elsewhere.

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One Channel is a good way to get users to become subscribers, which has become more critical than a few years ago. Mainly because people who subscribe to channels on YouTube generally watch more content more often than those who don’t. They are also more likely to be the opinion leaders who informally influence people who surround them to watch the videos too. The new Social buttons will also help to start conversations outside of the channel, allowing brands to build an ongoing relationship with their subscribers.

haVing a gOOd VideO strategy is iMPOrtant tO be able tO fOster real engageMent arOund a brand.

POV: 2013

31

PlaystatiOn 4 Vs. xbOx OneeVery yeAr the gAming industry gAthers At e3, the

electrOnics entertAinment exPO, which shOwcAses

the lAtest deVelOPments in gAming

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This year’s expo focused on consoles, with new technologies presented by Microsoft Xbox and Sony PlayStation both vying for top position, and rights around game sharing (Digital Rights Marketing).

Microsoft presented the Xbox One in two stages, firstly showcasing the console as an all-in-one hub for home entertainment and secondly demonstrating the consoles clout gamer-to-gamer. Microsoft then moved on to DRM (Digital Rights Management) answering the question of whether games could be traded or loaned; the short answer was yes, but only once. Microsoft also reconfirmed that the Xbox One needs a daily connection to the internet to check for updates and suspicious activity. Overall the Xbox One is a state of the art console with a great range of exclusives, all for $499. However the DRM restrictions mean that the consumer loses a lot of control. The gaming community saw this coming and was almost ready to accept this as the future of gaming, matching, as it does, the line taken by Amazon and Apple with their tech products.

Then Sony stepped on stage with an opposing point of view on the future of DRM, announcing that the PS4 will support the lending and trading of games and doesn’t need to connect to the internet at all. Sony did not have as many exclusive game titles as the Xbox One announced, but it offered real competition by presenting a service that is built more around consumer and developer choice, whilst also undercutting Xbox One by $100 at a starting price of $399. Additionally the Sony PS4 has social built into its DNA with a with a button on the remote called ‘share’ that allows players to share in-game footage,

This approach to DRM could well end up with the PS4 winning the battle for the hearts and minds of gamers looking to upgrade their console; the question is whether it will win the battle for the living room.

adrian grassO

iMPlicatiOns

The gaming industry is a multi-billion dollar one, and winning over the core gamer market will play a big part in winning the battle for the living room and so set the scene for the future of the industry.

If Microsoft is able to convince non-core gamers that Xbox One is the device that will allow them to replace the tech that currently surrounds the TV then they might ultimately win. Nintendo’s Wii became a huge success because it was able to bring entirely new demographic sectors into the world of gaming (primarily women) – Microsoft clearly hopes to build on this and wants to be the hub for the connected TV.

if MicrOsOft is able tO cOnVince nOn-cOre gaMers that xbOx One is the deVice that Will allOW theM tO rePlace the tech that currently surrOunds the tV, then they Might ultiMately Win.

suMMary

It is clear now that Sony and Microsoft really do have two diametrically opposed philosophies. Sony has shown a console that competitively rivals the Xbox One on specs, while concentrating on offering a service where the consumer is in control. Microsoft however has developed a console that has concentrated on being the ‘all-in-one’ entertainment device, which has led to a restructure of business models and raised DRM issues that will restrict the consumer. Time will tell whether targeting traditional gamers, as Sony has obviously done, will prove to be the winning strategy.

POV: 2013

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However, as per previous years, much of the action took place “off Palais”. Here are my notes on those smaller meetings staged in numerous hotel suites, penthouses, and beach venues along the Croisette.

yes We canneseVeryOne frOm JensOn buttOn tO P. diddy mAde

An APPeArAnce At this yeAr’s cAnnes liOns

festiVAl Of creAtiVity.

tWitter gets a PenthOuse

In a mere two years Twitter has gone from informal chats on a beach sofa to taking top executives through its plans in a swanky penthouse overlooking the Palais. Twitter is on fire, and is firmly positioning itself as the connective bridge between TV and online, a USP reinforced by a slew of new initiatives including TV re-targeting, new broadcast content replay partnerships, and the recently announced WPP Kantar TV ratings partnership. With 64% of US mobile users watching TV with Twitter, and a global user base at over 500m users, the company is in a good position to take on Facebook in the social TV wars.

yahOO has a Pulse

After a lengthy period of silence from new CEO Marissa Mayer, Yahoo is finally showing some signs of life. Several recent acquisitions have given Yahoo an extra bounce in its step, not to mention some much needed youthful talent and energy. Summly’s algorithm condenses and summarises longer stories, while Tumblr adds long-tail social content into the existing premium created or aggregated content, which along with scale is Yahoo’s main USP. All of this content will appear in a new newsfeed, which will also naturally include paid advertising. However, like search or social, brands may also enter into this newsfeed via organic means if that content is relevant to a user. Also of note is the new weather app, which now contains local flickr images and enables real-time ads that can be triggered by location or climate changes.

nOrM JOhnstOn

tWitter is On fire, and is firMly POsitiOning itself as the cOnnectiVe bridge betWeen tV and Online

Microsoft ignites with xbOx One

Microsoft’s expansive beach compound hosted its Ignite sessions, which enabled visitors to demo some of its latest technology. The star attraction was the new Xbox One, which is simply a stunner. Unlike the initial Xbox package, this time around the Kinect technology will be included in every box shipped, which means the really sexy stuff will finally get some scale. The new Kinect adds a host of new features, e.g., measuring your heart beat, ascertaining whether you are smiling, recognising the products in your living room, responding to more voice commands, etc. For advertisers, the Xbox One will reinvent the engagement model and opportunity between consumers and branded content. With Xbox also expanding beyond gaming into entertainment, Microsoft will also get a solid TV boost in the three-screen battles.

at gOOgle it’s hiP tO be square

Google’s new found hipness was perhaps best represented by the bizarre site of Google Glass wearing hipsters singing along to Tinie Tempah at its Thursday party. You can’t make this stuff up. Google didn’t have much new to share at Cannes, other than the wonderfully named Project Loon effort to provide more Internet access to rural areas via balloons. However, it was clear to all that YouTube continues to be a major creative and commercial focus for the organisation, both for TVC migration to online as well as the more expansive branded content and channel opportunities.

facebOOk grOWs uP

Anyone who thinks Facebook has peaked should ask the 800,000 people who are joining the social network every day in emerging markets, or the 100 million folks now on Facebook owned Instagram. There’s still plenty of life in the old social network, with more exciting enhancements to come. The worst kept secret in the industry – the forthcoming video ad units – are very compelling albeit expensive. What was notable this year is that the social network, and the discussions around it, has matured. The decision to reduce the number of ad units is a welcome one. The focus on business objectives rather than fan building is a step forward. And the debate around hard data and results rather than the usual lofty rhetoric is a relief.

the Others

AOL shared its ambitions around new live video content, including real-time brand advertising (think video tweets). Spotify invited advertisers to real-time hacks to explore new ways for brands to play within its music ecosystem. Apple and Amazon kept much lower profiles than the others, arguably reinforcing the continued industry perception that perhaps advertising isn’t that fundamental to their businesses, or they just don’t know how to throw a good party.

gOOgle didn’t haVe Much neW tO share at cannes, Other than the WOnderfully naMed PrOJect lOOn effOrt tO PrOVide MOre internet access tO rural areas Via ballOOns

POV: 2013

33

instagraM VideOOn June 20, instAgrAm Added A functiOnAlity thAt

enAbles users tO tAke shOrt VideO cliPs On its PlAtfOrm.

the new VideO feAture cOmes hOt On the heels Of twitter’s

recent Vine VideO lAunch.

backgrOund

Instagram, purchased by Facebook for $1bn in 2012 was, until now, an image-only social network. The platform differs from other photo related sites in that it has built-in filters, allowing users to alter their pictures directly from their mobile devices before sharing. The network was originally a mobile-only platform, but has added limited functionality to its browser supported website.

With the new ability to post short videos, users will be able to create clips of up to 15 seconds, apply filters to them, stabilise them, and delete segments of these videos before uploading. Users will not be able to upload pre-existing content to the platform. Videos must be created on the app, i.e. no uploading of 15 second TV spots. This new functionality is currently available to all users on both iOS and Android mobile devices.

iMPlicatiOns

The new features on Instagram should help brands better leverage their existing fan base on the service by creating short multimedia pieces of content in one place. Until now, in order for brands to create and share video content, they were forced to either utilise YouTube, which has a more complex content creation process, or Vine, which appears to be the direct competitor to this new video service. Vine, launched by Twitter in January 2013, offers similar but slightly different features.

While Vine videos are shorter and loop, forcing true creativity to shine, many find it difficult to create quality content on the platform. Instagram video has more flexibility with 60% more time allotted. Instagram’s filter, editing, and stabilisation features are also unique, making it easier for brands to produce quality content.

Both Instagram and Vine videos rely on #hashtags for discovery beyond their existing fan bases. They are not particularly SEO friendly as they do not appear in Google or other search engine results as yet. Searching for videos can only be done on the Instagram or Vine apps. YouTube videos, by contrast, are baked in to Google search. Being an image-only platform until now, Instagram may alienate existing users or it may persuade Twitter users and content creators to abandon the 6-month-old Vine format.

dani klein

suMMary

Brands that have not fully embraced Vine and that have an existing Instagram presence may opt out of utilising Vine altogether; especially considering that Instagram’s user base is 10x that of Vine’s. While there could be interesting uses for Vine via their unique looping feature, most brands do not have the creative capabilities, or time, to execute properly using Vine. Others may find Vine’s native authenticity attractive and aligned to the brand’s positioning and personality. Time will tell if Facebook is able to use Instagram video to kill Vine’s recent six seconds of fame or if the industry can live with both formats, and most likely many new ones in the future.

the PlatfOrM differs frOM Other PhOtO related sites in that it has built-in filters, allOWing users tO alter their Pictures directly frOM their MObile deVices befOre sharing.

users Will nOt be able tO uPlOad Pre-existing cOntent tO the PlatfOrM. VideOs Must be created On the aPP, i.e. nO uPlOading Of 15 secOnd tV sPOts

POV: 2013

34

facebOOk #hashtagsOn 12 June fAcebOOk lAunched the

use Of hAshtAgs in POsts

backgrOund

It will work very much like hashtags on Twitter. Posts containing the same hashtag will be aggregated and placed in chronological order in a thread which can be seen by people and pages whom are not necessarily friends or fans and is clickable (this will only apply to public posts). It will open up opportunities for brands to be a part of interest based conversations rather than advertiser content only being seen by existing fans and friends of fans.

facebOOk hashtags Will Mean that cOntent Will be easily shared frOM PlatfOrM tO PlatfOrM.

suMMary

Facebook hashtags are a game-changer for advertisers. Hashtags on Facebook will give a deeper insight into the lives of users, which will result in better targeting capabilities. As a result, we expect to see either the gradual depreciation of pages as people migrate to hashtags only, or brand pages growing more organically through building awareness in interest based conversations. Certainly the boundaries between Facebook and Twitter are becoming increasingly blurred and it will be interesting to see what Twitter’s next move will be in response to Facebook hashtags.

interest targeting On facebOOk is nOthing neW, but if a user takes the tiMe tO hashtag a POst, it adds great Weight.

facebOOk hashtags are a gaMe-changer fOr adVertisers.

elizabeth harry iMPlicatiOns

Facebook hashtags will mean that content will be easily shared from platform to platform. Above-the-line media containing hashtags will become more resonant and have greater synergy across Facebook, Twitter and Instagram. For example, Nike’s #makeitcount campaign spanned from TV to outdoor, to Twitter and Instagram and across the web. But Facebook, although present in terms of echoing content, lacked the heavily-promoted #makeitcount hashtag to tie it all together. So hashtags will have more impact at a campaign level.

Hashtags will allow Facebook to gain a deeper insight into the lives of its audience. Hashtags will allow data such as status updates, pictures and check-ins, to be categorised, so Facebook can understand the audience better and then map that information onto its existing understanding of its users (age, gender, location, friends etc.). All of this will result in an improved ad-targeting system. Interest targeting on Facebook is nothing new, but if a user takes the time to hashtag a post, it adds great weight. For example, you may have ‘liked’ Ferrari back in 2009, but never given them another thought since. As a result, your casual “like” is viewed in the same way as a hardcore Ferrari fan’s “like” by the brand, which isn’t accurate. If you suddenly use #Ferrari in a post on a Saturday afternoon, you become a relevant consumer to an advertiser. This generates real time relevance, which is what has made Twitter so successful.

Facebook privacy settings will still take precedence over actions so if you use a hashtag in a status that has been set to be seen by ‘friends only’ then only your friends will see your update. As a result of this, conversations will not form as fluidly on Facebook in the way they do on Twitter. Additionally, the majority of authentic conversation on Facebook occurs within the comments box of a post, which is not currently permitting hashtag searches - possibly a missed opportunity. Finally, the move could result in fewer hashtags being used in actual conversation on Facebook and used increasingly to tag relevant images - generating a more photo based sharing community than a conversation based one.

Will we see Facebook package its products up in a similar way to Twitter? Possibly. If we do, we will likely see a bundle of ad formats being rolled out (promoted hashtags and trends) so that when users click hashtags, it becomes a new discovery mechanism for brand content and pages.

POV: 2013

35

linkedin sPOnsOred uPdateslinkedin hAs releAsed sPOnsOred uPdAtes in its news

feed AllOwing brAnds tO PrOmOte cOntent frOm their

linkedin cOmPAny PAge tO fOllOwers And the wider

linkedin cOmmunity.

backgrOund

The ad format is similar to the offering available on Facebook and Twitter, but it signals an important development in LinkedIn’s content marketing strategy.

iMPlicatiOns

Sponsored Updates allows you to: post images, videos, documents, links or text that have been shared to the brand’s LinkedIn Company Page; Target followers or non-followers; Segment the audience by industry, job function, seniority, geography, age and gender targeting and buy on a CPC model – although advertisers do not pay for clicks on social actions (e.g. follow, comment, like or share).

The new services will be available in all markets and languages used where LinkedIn is present and are able to be managed by Mindshare through the self-serve platform from 29th July.

laura MurPhy)

suMMary

Sponsored Updates are just the latest step in a considered, long term strategy for LinkedIn to establish itself as a content platform for business professionals, which began with Company Pages and Groups and more recently, Influencer blogs.

As is always the case with content marketing, the challenge to advertisers is to create a value exchange with consumers using content that feels contextual to the platform and relevant to the audience.

Emulating the Facebook and Twitter news feed updates should provide a robust advertising model that will open the door to B2B and B2C advertisers chasing the affluent individual.

linkedin’s adVantage OVer facebOOk and tWitter is the quality Of its audience

it signals an iMPOrtant deVelOPMent in linkedin’s cOntent Marketing strategy.

LinkedIn’s advantage over Facebook and Twitter is the quality of its audience– with more than half its members having a college education or higher and an average household income of $83k in the US (Nielsen, 2011). As such, LinkedIn offers advertisers the ability to broadly target a highly educated and affluent audience, which is often hard to segment and reach on the other social media platforms.

This is welcome news for B2B brands wanting to target C-Suite executives and business decision makers, as it is hard to target and get the tone of voice right in other social media environments. Beta tests have also shown that there is also a place for B2C (particularly luxury) brands to reach their target audience, e.g. Louis Vuitton advising travelling executives how best to pack their suitcases; Mercedes Benz utilising the sponsored updates to promote the launch of its new S-Class.

POV: 2013

36

facebOOk resultsfAcebOOk stunned the AdVertising cOmmunity this

week by AnnOuncing thAt mObile reVenues

AccOunted fOr 41% Of its tOtAl AdVertising incOme.

digital teaM

iMPlicatiOns

The massive swing in investor confidence – one analyst said that Facebook had literally ‘crushed my expectations’ - is a real coming of age moment for Facebook. It was only 18 months ago that the social giant had little or no mobile revenues (or strategy seemingly) and the biggest question hanging over its head when it went through its IPO in Q2 last year was ‘can Facebook make money from mobile?’ This week Facebook answered that question, and then some. In typical, ‘nothing’s ever finished’ fashion the social giant is now looking for the next big market opportunity, and Cheryl Sandberg, Facebook’s Chief Operating Officer - and if you believe some the future first Female President of the USA - believes Facebook is already on its way to grabbing it with both hands. She suggests that although ads are only just beginning on the Facebook for Every Phone service, it is already very appealing to advertisers because “there is not really an easy way to reach people in the developing world.”

backgrOund

Overall revenues reported for Q2 2013 stood at $1.81 billion, an increase of 53%, compared with $1.18 billion in the second quarter of 2012. Advertising revenue was $1.60 billion, representing 88% of total revenue and a 61% increase from the same quarter last year.

As well as very healthy business results, which caused stock to surge by a massive 30%, the social giant also posted some other impressive numbers. During the Q2 period it surpassed 1 million active advertisers, driven by significant growth in local businesses. It also introduced video for Instagram and saw 5 million videos uploaded in the first 24 hours. The Facebook for Every Phone App has now passed 100 million monthly active users – stretching the reach of Facebook beyond solely the world of smartphones and Facebook also launched new products including Verified Pages, hashtags and embedded posts.

Facebook founder and chief executive Mark Zuckerberg said: “We’ve made good progress growing our community, deepening engagement and delivering strong financial results, especially on mobile. The work we’ve done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future.”

suMMary

Facebook has posted some very positive results this quarter, exceeding expectations based on its tumultuous last three months, especially through its mobile advertising platform. This is a clear sign that Facebook is starting to understand its role as a conduit between users and brands - from the slow decision around brand advertising being displayed on inappropriate pages, to the apparent delays on the video ad platform that’s been rumoured for months, it hasn’t been an easy three months. But the results show that Facebook could just be unstoppable now as it makes its play as the world largest advertising platform.

this is a clear sign that facebOOk is starting tO understand its rOle as a cOnduit betWeen users and brands

a real cOMing Of age MOMent fOr facebOOk

POV: 2013

37

gOOgle chrOMecastthe lAunch Of gOOgle’s chrOmecAst - A $35 dOngle thAt

AllOws users tO streAm cOntent frOm netflix, yOutube,

gOOgle PlAy, the chrOme brOwser And PhOtOs Albums tO

their tVs - OPens A new AVenue fOr the brAnd intO the

cOnsumer’s liVing rOOm.

dubOse cOle

iMPlicatiOns

Google has positioned Chromecast as a lightweight, straightforward and affordable solution to making any TV ‘smart’ and it takes the web giant into competition with a number of SMART TV, gaming and streaming providers including Roku and Apple TV. The device’s low price point helps it to compete against SMART TVs and other entertainment devices, whilst the wide compatibility across mobiles, tablets and computers ensures it compares favourably against a more controlled Apple TV and Airplay streaming system – which can only use Apple devices.

The low cost of a Chromecast dongle may also have an impact on the more expensive connected video game console market that in recent years has made the leap from gaming devices to full entertainment platforms – and which has likely undermined the sales of SMART TVs as a result.

In order to compete with games consoles and SMART TVs, Chromecast must deliver unique content and services and this may be helped by Google’s model of reaching out to the developer community to get them to create second screen applications and to embed Chromecast into existing apps. This model could easily outpace the more controlled and less open-source model of partnering for content available on SMART TVs and gaming platforms – especially as the dongle allows you to stream content direct from the Chrome browser - although it does not guarantee the premium content which is craved by consumers.

backgrOund

Unlike SMART TV interfaces or connected devices, which feature remote controls and on-screen menus, Chromecast uses a consumer’s existing devices as the controller, meaning content can be streamed and controlled from Android phones and tablets, iPhones, iPads and Chrome for Mac and Windows.

suMMary

Chromecast is the latest service to realise that you don’t have to build big hardware to capture a market. Facebook has managed to get its social network onto more than 100 million phones through its Facebook for Every Phone app, when many believed that a Facebook phone was in development. Chromecast highlights how manufacturers can tap into existing platforms to make a smarter, cleaner interface that makes the primary screen just about viewing. The service’s content development model, allowing apps to stream via Chromecast, is clever and gives app developers an incentive to build for the device. As always with Google, the price point is significantly below its major rivals, in this case Apple’s already reasonably priced Apple TV at $99.

Chromecast has the potential to be very big and will open up the ‘SMART TV’ market to a whole new audience.

POV: 2013

38

Pinterest Price drOP nOtificatiOnsPinterest hAs intrOduced An emAil nOtificAtiOn sent tO

users when A PrOduct they hAVe Pinned drOPs in Price.

backgrOund

This “price drop notification” is an enhancement to the product price pins rolled out in May, which associate prices with the products pinned on the site.

Product pins with prices have proved very popular since their launch, receiving 36 percent more likes than those without. The new price drop notification feature will roll out with very few customisation options – users will either opt-in or opt-out in their settings menu.

iMPlicatiOns

Pinterest boasts over 70 million users (97% of which are female and more than 50% of which are in the US).

More importantly, it has managed to become what Google, Facebook, Twitter and others have long pursued: an effective merger of social and commerce. A study of online shoppers in the US found that Pinterest is the second largest driver of online shoppers to retail sites (11.3%), behind social media giant Facebook (85.8%) and ahead of Twitter (2.9%). Additionally, Pinterest shoppers spend up to 50% more per checkout than their Facebook and Twitter counterparts and 70% more than visitors referred from non-social channels.

With no advertising product available to push reach, brands will have to rely on the organic behaviour of users pinning to share things of interest with others – more than 80 percent of pins are re-pins – to drive engagement with their branded pins.

steVe sherfy (edited by laura MurPhy)

Pinterest bOasts OVer 70 MilliOn users

it has Managed tO becOMe What gOOgle, facebOOk, tWitter and Others haVe lOng Pursued:

suMMary

With the shopping season soon approaching, retail brands would be remiss if they did not do all they could to harness the potential of the social commerce phenomenon that is Pinterest. Brands that focus on creating product price pins that are aesthetically rich will find themselves the most successful; the price drop notifications should spur interested pinners into action and convert them into customers.

POV: 2013

39

aOl buys VideO exchange adaP.tVAOl hAs Acquired VideO Ad exchAnge AdAP.tV

fOr $405 milliOn ($322 milliOn in cAsh And

$83 milliOn in AOl cOmmOn stOck).

backgrOund

Adap.tv is a platform that allows advertisers to buy, sell and serve web, mobile and connected TV video ads in real time, in a similar way that display inventory is bought on a Real Time Bidding (RTB) model. The move is widely seen as an attempt to better compete with market leader Google.

iMPlicatiOns

The deal marks long overdue consolidation of the sector, which has been notoriously cluttered and fragmented. Given Adap.tv’s existing relationship with top level publishers and advertisers, the deal will likely ‘double’ AOL’s overall volume and revenue, according to Tim Armstrong, AOL’s chairman and CEO.

The acquisition was announced alongside AOL’s second quarter earnings report, which noted that the company surpassed Wall Street estimates on earnings per share and revenue during the period.

The acquisition reflects AOL’s bid to strengthen its offering in two of the fastest growing ad sectors: online video advertising and programmatic ad buying. Adap.tv allows advertisers to buy large amounts of highly targeted video advertising using programmatic buying. Whilst this isn’t unique to AOL, it is not yet a standard offering in the premium content environment.

A shift of dollars from broadcast TV has been a noted trend since we all began time shifting our viewing over ten years ago. AOL is hoping to capture that shifting revenue. In the US, digital video advertising is expected to increase 41% year on year in 2013, while programmatic ad buying is expected to climb 73% in the same period.

The acquisition strengthens AOL’s offering but unless media deals included large volumes of AOL video inventory bought through Adap.tv, it does not change the planning and buying process hugely. It also doesn’t solve the attribution issues surrounding online video as video analytics will be held on the publisher side and run through a different ad server, making overall reach and frequency figures impossible to pin point. The same problem is true of Google’s offering.

eridani baker

the cOMPany surPassed Wall street estiMates On earnings

suMMary

This purchase is a visible sign of an overall industry shift from premium-to-programmatic strategy for online video. Premium placements are likely to always exist and will likely continue to make up the majority of annual revenue. However, with the addition of video bought using RTB, AOL is now strongly positioned with a multi-screen and end-to-end (inventory to analytics) offering that makes it a stronger contender in the global marketplace.

POV: 2013

40

iMPlicatiOns

In the August 2013 TYNY the internet’s share of ad investment is stated as 17% for 2012 and 19% for 2013. GroupM now also proposes 20% for 2014 and the growth rate for ‘interaction’ remains consistent at around 14% globally. There is also a story playing out about the contribution to the global advertising pot by industrializing nations and emerging markets. Since 2000 the industrializing world has routinely contributed much more to advertising growth than is proportionate to its share of the world economy. This is likely to continue. These forecasts do however portray 2013 as a year of peak contribution - 80% of net new ad demand from 40% of aggregate GDP. The forecast for 2014, and in modeling for the years beyond, is for more like a 60% contribution. The older industrialized world shoulders a larger share of growth, and in particular of course the USA, which this year, despite fiscal contraction equivalent to 2% or more of GDP, is still expecting ad growth of 1.87%, and 2.9% for the mini-quadrennial next year. In other words, the USA represents 17% of GroupM’s forecast net global ad growth in 2013 and 18% in 2014. Latin America, in contrast, now represents 16% in 2013 easing to 12% in 2014. Within the industrializing world, China’s pre-eminence as an advertising rainmaker looms ever larger, this year raising 40% of net new global investment according to GroupM forecasts. There is similar support for sustained advertising growth in Russia. Western advertisers’ share of investment in both countries remains as substantial as ever, and even rising, according to standard industry monitoring sources.

backgrOund

In December 2012 the TYNY report predicted 2012 ad growth of 4.5%, but the reality was 3.6%. The main reasons were the Eurozone periphery disappointing again and the exhaustion of Japan’s post-Tsunami recovery cycle. The latest August 2013 TYNY report also revises 2013 down to 3.4% growth from a previously predicted 4.5%. The Eurozone periphery - Italy, Spain, Portugal, Greece and Ireland - is again the main reason. GroupM now expects this group to record an 11% fall in measured advertising in 2013. This group accounted for 7% of global advertising investment before the crisis. Now it is near 3%. This is a 40% fall in ad dollars, although nominal GDP has barely changed. The report also records reversals across northern Europe and the Nordics. Western Europe is set for a 2.4% fall in aggregate advertising demand in 2013, against earlier hopes of a half-point rise and we are no nearer any orderly resolution to internal Eurozone imbalances which might restore confidence.

since 2000 the industrializing WOrld has rOutinely cOntributed Much MOre tO adVertising grOWth than is PrOPOrtiOnate tO its share Of the WOrld ecOnOMy.

inVestMent in digital Media cOntinues tO grOW at a cOnsistent Pace

suMMary

Investment in digital media continues to grow at a consistent pace, despite the more turbulent overall advertising market. The two leading themes of the latest report are online video’s encroachment of linear TV, and, unsurprisingly, the unrelenting pressure on press media. Also, interestingly, the themes which were expected to be evident but did not receive the emphasis expected were the impact of the footbal World Cup and the Winter Olympics. Overall there is room for optimism with the 5.1% prediction of growth for 2014, although this is tempered by the revised down figure of 3.4% growth for 2013, from a previously predicted 4.5%.

tyny July 2013grOuPm hAs releAsed its lAtest this yeAr next yeAr

(tyny) rePOrt On the stAte Of the glObAl AdVertising

mArket, with An OVerAll PredictiOn thAt 2014 will see

Ad grOwth Of 5.1%.

digital teaM

POV: 2013

41

backgrOund

The new product will be built into the iOS software and will initially be available in the US only across iOS7 – compatible on iPhones 4+ and iPad 2+. It will not be available as a standalone app and will use an algorithm to search users’ purchase histories to create custom stations.

itunes radiOitunes rAdiO, tiPPed tO lAunch

in sePtember 2013, will be An

integrAted PArt Of the On

deVice itunes exPerience.

us digital teaM

eridani baker

suMMary

Apple’s device penetration gives any new launch a great chance of success. If Apple has learned from Ping, then Spotify and Pandora should be worried. For advertisers, it redefines ‘radio’ and pushes it back into the heart of the media plan.

itunes Wins, With OVer 35 MilliOn sOngs Vs. Just 20 MilliOn On sPOtify.

the gOal is tO get yOu tO listen, like and buy tracks frOM the itunes stOre

iMPlicatiOns

iTunes Radio seems an obvious attempt to compete with Spotify and more directly Pandora which, mainly due to copyright laws, also operates only in the US. However, Apple will no doubt be looking to expand; so how does iTunes Radio stack up against Spotify? In terms of libraries iTunes wins, with over 35 million songs vs. just 20 million on Spotify. iTunes Radio will be available free and on the go across tablet and iPhone, whilst Spotify Free is only available on desktop. iTunes Radio will be ad supported, just like Spotify Free, but whereas free listening on Spotify is capped after 6 months at 2.5 hours a week, iTunes radio will be unlimited. Perhaps the most crucial difference is like Pandora, but unlike Spotify, iTunes Radio has less user control as it doesn’t feature a search and play function - the goal is instead to get you to listen, like and buy tracks from the iTunes store based on an algorithmically created playlist.

iTunes Radio advertising opportunities will be similar to those on Spotify. Ads will be demographically targeted and will click through to an advertisers’ site. Targeting data will be taken from iTunes preferences and context (device, location, music genre, artist etc). At present there are no plans for a more in-depth offering like Spotify’s artist pages. In recent years iTunes has run a successful paid video distribution channel, as the iTunes Radio product develops it will be interesting to see if a music video service is added, potentially adding YouTube to its list of competitors. Taking learnings’ from Ping – Apples failed social network play - iTunes Radio seems to be an environment in which, if it is easily possible, sharing will naturally occur.

The fact that all new Apple products will come with iTunes Radio already baked in will be a huge driver of traffic. The fact that the new product will be available via software update on all iPhone 4+ and iPad 2+ devices from launch will give iTunes Radio an instant potential audience of roughly 200million users, making it a strong competitor for Spotify and Pandora. The new product does not currently compete with applications such as TuneIn and iHeartRadio, which allow users to access local Radio stations via their phone, but from an advertiser perspective these type of radio applications do not offer custom mobile advertising solutions, mainly selling their inventory to networks. So iTunes Radio is a more interesting proposition.

POV: 2013

42

With these two key products, the ability to now insert MoPub’s technology into the equation becomes even more powerful; Twitter plans ‘to use MoPub’s technology to build real-time bidding into the Twitter ads platform so our advertisers can more easily automate and scale their buys.’

As Twitter points out in its press release: ‘The two major trends in the ad world right now are the rapid consumer shift toward mobile usage, and the industry shift to programmatic buying. Twitter sits at the intersection of these, and we think by bringing MoPub’s technology and team to Twitter, we can further drive these trends for the benefit of consumers, advertisers, and agencies.’

These recent acquisitions actually compliment a third major trend occurring with TV and mobile which is two-screen viewing and conversations, especially around live events. The ability to track and target real-time messages to relevant users more accurately is being reinforced with these acquisitions.

Finally, there is widespread speculation of a forthcoming Twitter IPO; these acquisitions should further improve its attractiveness to advertisers, and therefore Twitter’s financial performance and profitability.

iMPlicatiOns

These acquisitions will not only allow Twitter to offer deeper audience insights and functionality to marketers, networks, publishers and other organisations, they will also bring in-house a competing service. Trendrr was the last independent player in the social TV chatter space - Twitter bought Bluefin Labs in February and Nielsen bought SocialGuide in November. This is all notable as Facebook has been evolving its platform to become more of a contender in the real-time conversation market with the development of new tools like Trending Topics and hashtags. Facebook has also indicated that it’s looking at its association with TV much more closely. Facebook announced in July (coincidentally from the results of a Trendrr research piece) that it has more TV chatter than Twitter, just behind ‘closed doors’ due to its users’ ability to restrict access to their content. By absorbing Trendrr, Twitter has not only bolstered its appeal to advertisers, but also ensured Facebook has limited options for future acquisitions.

Ollie killick

elizabeth barry

Jed hallaM

tWitter gOes On the OffensiVein A quest tO scAle And better tAP intO reAl-time

sentiment And mObile tArgeting, twitter hAs gOne On

An AcquisitiOn sPree with the PurchAse Of trendrr,

A sOciAl-tV AnAlytics cOmPAny, As well As mOPub, the

wOrld’s lArgest mObile Ad exchAnge.

suMMary

For many users Twitter is the place where real-time conversations happen. This engaged audience and stream of real-time data has attracted advertisers and has started to turn into much needed advertising revenue.

The additional functionality and expertise Twitter gains as a result of this acquisition will add to its second screen credentials and give advertisers more tools to better target their consumers across whatever screen they are engaging. No doubt we will see much more development in this TV, social, and mobile intersection.

Emulating the Facebook and Twitter news feed updates should provide a robust advertising model that will open the door to B2B and B2C advertisers chasing the affluent individual.

fOr Many users tWitter is the Place Where real-tiMe cOnVersatiOns haPPen.

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Both moves solidify Twitter’s desire to bring together and own, particularly vis-à-vis Facebook, three key spaces: TV and online multi-screening, mobile and programmatic buying.

Today, many advertisers use Twitter to support their TV ads and as a consequence the social network has been developing its analytics platform. Twitter added a TV slant on its targeting when earlier this summer it rolled out TV Ad Targeting in the US. This product allows advertisers to target their ads towards users who are likely to have seen the shows where their ads ran, based on what individuals have tweeted or the hashtags they have used.

The acquisition of Trendrr adds two key products to Twitter’s stable: Trendrr.TV and Curatorr. Trendrr.TV provides TV networks, publishers and media agencies with tools to track TV engagement across social networks, including Twitter. Curatorr allows those same parties to sort through social streams to visualise data and to help them identify high-quality tweets. These tweets can then be re-tweeted by a TV show’s Twitter account or show up on air during a live show that includes Twitter conversations as part of their show format.

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To date there is not much information as the company filed under the JOBS Act, which made it possible for the company to file its S-1 statements in secret. In fact, there is only speculation, mainly around the IPO price (potentially $10 to $15 billion) and the timings (probably the end of 2013/early 2014).

The JOBS Act went into law on April 2012 and it allows the so-called “emerging growth” companies – startups with less than $1 billion in annual revenue – to file secret S-1 statements with the SEC, which will have to be made public 21 days prior to the investors and analysts IPO road show. The act allows startups to test the waters and avoid weeks or months of bad press; e.g. Groupon’s painful questions over its faulty accounting methods.

Of course the secrecy reveals one major piece of information: Twitter has small enough revenue to fit under the act. A report from eMarketer earlier in the year predicted that the company’s ad revenues

would grow to about $583 million in 2013. Next year Twitter is predicted to reach over $1bn in revenues, demonstrating its great momentum and future potential in ad revenue growth.

Twitter’s user base growth has also been remarkable, if not lower than initially forecast. Last December Twitter reached 200M monthly users, with a forecasted growth targeting 400M. However, as of today, the platform has roughly 240M with an additional 20M expected by the end of the year. These numbers, while substantial, reinforce industry conjecture that Twitter may not reach the mass penetration levels seen by its much larger and widespread rival Facebook. Even Twitter’s much touted position as the number one social TV destination has been challenged by Facebook, which points to the substantial number of closed TV related conversations that happen on its platform but don’t get measured.

Nevertheless Twitter continues to build an extraordinarily attractive platform. Recent acquisitions, (Bluefin, Trendrr, and MoPub) and new advertising tools and formats (TV re-targeting) have arguably offered many marketers a much simpler, cost-effective, and real-time means to not only advertise but also to capitalise on the new TV and online love affair.

Twitter has also learned some lessons from Facebook, and in particular the latter’s controversial 2012 IPO. Twitter has taken a very different approach to the timing (sooner), its lead underwriter (Goldman Sachs), the filing under the JOBS Act, and finally its rumoured choice of NYSE rather than NASDAQ.

iMPlicatiOns

For advertisers, an IPO is good news as the influx of cash will allow Twitter to scale and expand faster (a long-standing complaint about perpetually thin on the ground Facebook), build more functionality and advertising opportunities into the platform, better promote itself to a wider audience, and finally make additional acquisitions. A successful Twitter IPO could also embolden other companies potentially wary of going public due to Facebook’s fiasco, although Zuckerberg’s social network and wealth has seen an amazing rebound in recent weeks.

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Here we go again, but perhaps this time a bit wiser and without the circus that came with the Facebook IPO. Twitter has had an amazing year, topped off with two very smart acquisitions. Going public will enable it to build up the war chest it will need in the coming years to take on Facebook and other giant regional social networks as it expands around the world.

“We’Ve cOnfidentially subMitted an s-1 tO the sec fOr a Planned iPO. this tWeet dOes nOt cOnstitute an Offer Of any securities fOr sale.” - tWitter (@tWitter) sePteMber 12, 2013

tWitter’s uPcOMing iPOwith A brief tweet, lAst week twitter mAde

OfficiAl the wOrst kePt secret in the business:

it’s gOing Public.

Marta MattiOli

POV: 2013

44

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Unlike many of its franchise competitors who release annual or bi-annual titles, Grand Theft Auto’s makers, Rockstar Games, believes in the less-is-more theory. The latest chapter in the GTA series was released on September 17th, four years after the last release and allegedly had a $250M budget. The storyline is of three thieves looking to pull off six heists and includes both single-player mode and multi-player mode where up to 16 players can compete collaboratively or against each other as well.

Many now compare major video games to movies in their size and scale, and Grand Theft Auto V fits that bill: pre-launch marketing included trailers on YouTube and TV, teasers were drip-fed via Twitter and high-profile OOH spots were used. Images of swimsuit model characters with strikingly similar appearances to the most well-known supermodels created added buzz whilst news stories circulated prior to the launch.

Because of all of this Grand Theft Auto V smashed all records, taking $800M in its first day and over $1B within its first three days, giving it the title of fastest selling entertainment product ever. And with analysts suggesting that the total cost of marketing and production was likely lower than a similarly sized Hollywood movie, it’s likely that the game will take Avatar’s place as the most successful entertainment release of all time.

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With the impending launches of the next generation of consoles, new Call Of Duty, Battlefield, and Assassins Creed titles, and even more technology, add-ons, and games, Q4 2013 may be the most anticipated quarter ever in the video game industry. The enormous numbers behind Grand Theft Auto V reflect the sheer size of gaming’s potential. But this phenomenon is just another example of gaming being embraced as a pillar of entertainment, one that is covered by mainstream news outlets as a result of games now having a much wider audience.

Advertising opportunities are limited within the Grand Theft Auto franchise, and there wouldn’t be too many brands who would necessarily want to attempt a partnership. Rockstar take their own brand seriously and are not about to risk it with unrelated tie-ins, particularly when the Grand Theft Auto universe has its own in-game brands, many of them mocking real-world ones.

What can be learnt from the game is how to create truly immersive experiences. The game doesn’t begin and end at the console, mobile apps allow players to bet on the in-game stock exchange; the soon to be released online version will allow people to play from any device with an internet connection and mobile and tablet versions of previous titles allow Rockstar to bring new fans into the franchise at lower price points.

The release also suggests that in the coming console battles, Sony, with its concentration on core gamers, might do better than Microsoft’s more family friendly approach with games now out-performing Hollywood.

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The release of GTAV kicked off the biggest sales period in gaming in stunning fashion. The title, an instant-classic in so many ways, set a new bar for success, not just for the games industry, but for entertainment as a whole. It also set the bar for multi-platform marketing and engagement. Game on.

it’s likely that the gaMe Will take aVatar’s Place as the MOst successful entertainMent release Of all tiMe.

grand theft autO VcreAted in 1997, the grAnd theft AutO series is widely cOnsidered

One Of the mOst influentiAl frAnchises in gAming. brimming with POP

culture references grAnd theft AutO titles cOntinue tO generAte

extreme mAss APPeAl AmOngst gAme PlAyers As well As endless news

heAdlines dedicAted tO its POPulArity And questiOns Of its tendency

tO sPur reAl-wOrld crimes. All Of these fActOrs helP creAte A

Perfect sAles scenAriO.

geOff greenblatt

POV: 2013

45

gOOgle gOes securegOOgle hAs quietly AnnOunced thAt All users

will nOw Access ViA A secure cOnnectiOn.

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Users who now go to ‘http://www.google.com/’ (or a local version) will now be redirected to ‘https://www.google.com’ – the ‘https’ in the URL means that user keyword data is now encrypted and can no longer be received by analytics tools like Google Analytics, Omniture or other third party analytics tools. This will have an impact on SEO amongst other things.

For search marketers, especially SEOs, this news certainly shakes things up as they will no longer be able to see which organic keywords are bringing users to a given website. Instead, Google will hide organic referral data from secure users and label it as ‘(Not provided)’. This data is normally relied on in order to optimise website content and determine how users behave based on the keywords they searched for.

I.e. In Google Analytics: ‘Cheap Flights to Sydney = 34 clicks’ will become ‘(Not Provided) = 34 clicks’

Secure search was originally released in October 201. However it only affected users who were logged into a Google product. Over time, the number of logged-in users increased therefore increasing the percentage of ‘(Not provided)’ data which is expected to reach 100% by the end of 2013.

Google has always claimed that its decision to roll out secure search is related to user privacy. However it is still possible to access almost identical data for Paid Search keywords using Google’s AdWords product regardless of users being logged-in or not. As result, Google is often criticized for this seeming contradiction in its policy.

iMPlicatiOns

This change will affect anyone who relied on organic keyword data from tools such as Google Analytics to help form their content or any other marketing strategies. However, a top-level version of this data will be still available using Google’s Webmaster Tools, with greater detail available from the Google AdWords system, as previously mentioned.

From a wider industry perspective, access to free organic keyword data has benefited brands, publishers and merchants for many years. Whilst the fact that it will still be available for paying advertisers may lead to claims of hypocrisy, it does at least mean that this valuable data insight is not being turned off entirely.

PhilliP Ohren

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Having access to organic keyword data runs parallel to providing insight into how people find your products and services. Also, when considering that 30% of all search queries are for terms that have never been searched for before, keyword data provides marketers with insight into emerging trends. Not having access to this data at all would cause problems for thousands of websites, from major brands to smaller entities. This change cements the fact that to succeed brands and publishers must integrate Paid & Owned Media data sources, such as AdWords, in order to continue to access user insights.

in gOOgle analytics: ‘cheaP flights tO sydney = 34 clicks’ Will becOMe ‘(nOt PrOVided) = 34 clicks’

this change ceMents the fact that tO succeed brands and Publishers Must integrate Paid & OWned Media data sOurces

POV: 2013

46

an uPdate frOM chinaA recurring Piece Of feedbAck On Our

weekly digitAl POV’s is thAt mOst Of them

Are fOcused On silicOn VAlley: twitter,

fAcebOOk, gOOgle et Al.

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Many clients have asked for more coverage on what’s happening elsewhere in the world, particularly in China given its emergence as the world’s largest Internet population and a hotbed of innovation and competition to rival anyone in California. I was fortunate enough to spend a week in Shanghai and Beijing recently getting up to speed on the latest developments in China.

nOrM JOhnstOn

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China has historically been accused of duplicating successful Silicon Valley models in China. In fact the press often associates Chinese companies and people with familiar entities and faces from the West. It helps us quickly understand who they are and what they do, e.g. ‘Lei Jun is the Steve Jobs of China’. However, what’s clear from my visit is that the Chinese industry has moved on, and is now innovating, acquiring, and expanding at a remarkable pace of its own. Don’t be surprised if sometime soon we see a future Western entrepreneur called the ‘Lei Jun of Silicon Valley’.

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The Xiaomi Phenomenon: The Internet continues to gain momentum, particularly through mobile devices, which will be the main means of accessing the Internet for the 58% of Chinese currently not connected. Smartphone penetration levels are climbing rapidly, with over 420m smartphones in existence and 10m new mobile broadband subscriptions activated every month. We had the honour of hearing from Lei Jun, the founder of mobile phenomenon Xiaomi and the ‘Steve Jobs of China’ (complete with black t-shirt and jeans). Xiaomi offers low-cost Apple-like iPhones with an on-going Amazon pricing model for services and apps. It’s been a massive hit, quickly climbing to a 5% market share, higher than Apple’s 4.8%, with demand incredibly strong. According to reports, there are 7m people waiting to buy the phone, with bold predictions of international expansion and sales in the future. Could Xiaomi be one of the first Chinese start-ups to become a true worldwide hit? Stay tuned.

e-commerce is BIG: E-commerce continues to grow at an outstanding rate in China and has now reached $1.4 trillion. Alibaba, fueled by Taobao and T-Mall, has become the world’s largest online retailer, selling more than $170bn in goods in 2012; more than eBay and Amazon combined. M-commerce alone will reach $41.4bn by 2015, rising along smartphone penetration levels; nearly 60% of Chinese smartphone users have made a purchase on their portable device. Any marketer in China should be developing a strong e-commerce strategy as the brand’s future market share will inevitably linked to its online sales given current trends.

The Chinese search and social wars: Similar to Silicon Valley, most of the major Chinese online players continue to jockey for position against each other, mainly through acquisitions and new products. Robin Li, Baidu’s founder and CEO (‘the Larry Page of China’), talked about its recent $1.9bn acquisition of 91 Wireless, an Android application store. Given Android’s dominant market share in the region (over 70%), and the Chinese preference for using apps (88% of Chinese mobile users time is spent on apps), Baidu has wisely become the largest mobile app shop in China, all integrated into your search results. Not to be outflanked, social networking giant Tencent recently acquired a $448m stake in search engine Sogou. Tencent has also had some incredible success with its new WeChat social app. In a very short time it has racked up over 400m registered users. WeChat is an excellent product, arguably superior to Facebook in many ways, particularly in its integration of QR codes for quick offline content redemption and purchase.

dOn’t be surPrised if sOMetiMe sOOn We see a future Western entrePreneur called the ‘lei Jun Of silicOn Valley’

POV: 2013

47

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Despite this major change, most people noticed nothing different when searching. The Hummingbird algorithm uses many of the old procedures, weights, filters and methods of the old algorithm, will deliver better search results for long-tail, conversational-based searches.

Previously, if searching for ‘How can I fix my iPhone?’ Google would return a set of results that includes the keywords ‘fix’ & ‘iPhone’. This means Google would return a number of Web pages that contain these keywords but may not relate to the actual query ‘How can I fix my iPhone?’

With Hummingbird, Google’s algorithm will be giving more emphasis to the other words in the search query such as ‘how can I?’ Under the old model, Google was matching individual keywords and phrases to the pages in Google’s index. Now it is considering all the keywords in the query and the relationship between each to understand the intent behind the search query.

JyOti kOria

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To get the most out of the Hummingbird algorithm for search campaigns, it is important for PPC marketers to review user search queries on a regular basis for their search campaigns. There is a feature within Google AdWords that allows you to see exactly what users are typing into Google to get to your Web page. This will ensure you are on top of any long-tail or conversational based queries that are being used.

iMPlicatiOns

This change does not have any negative implications on any paid search campaigns. Marketers need not panic. However, it does create a small opportunity to expand long-tail search queries or add ‘conversational’ based queries to a search campaign. Previously, these types of queries had very few impressions, but if better and more relevant results are provided, there will be a growing number of users typing in longer search queries and full questions directly in Google.

this change dOes nOt haVe any negatiVe iMPlicatiOns On any Paid search caMPaigns. Marketers need nOt Panic.

huMMingbird algOrithM – gOOgle gets sWeeter resultsmArking its 15th birthdAy, gOOgle AnnOunced A new AlgOrithm

it cAlls ‘hummingbird’. the new AlgOrithm, designed tO mAke

seArch results mOre releVAnt, hAs APPArently been in ActiOn

fOr the PAst mOnth.

POV: 2013

48

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In the company’s somewhat apologetic blog announcement, CEO Ben Sibermann reassured users that the promoted pins will be ‘tasteful, transparent and relevant.’

eridani baker

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As a self-curated and truly visual platform, Pinterest provides the perfect place for relevant advertising. If Pinterest maintains a strictly relevance-driven algorithm approach, it is likely that ads served in Pinterest will be trusted and valued. This new product provides an exciting way for brands to interact with an already engaged and qualified audience.

iMPlicatiOns

Much like Twitter’s promoted tweets, promoted pins will be incorporated into selected category feeds and searches clearly marked as ‘promoted’. In the blog announcement Sibermann wrote that Pinterest will clearly differentiate sponsored vs. organic pins. Rather than offering demographic buys the focus will be solely on relevancy; for example, a search for ‘Halloween’ might produce a pin related to a confectionary brand.

Pinterest may not have as many users as Facebook or Twitter, but it represents an exciting opportunity for marketers because of who uses the site and how they use it. According to Pew Research Center, the average Pinterest user is a 25-54-year-old female in households with an income of at least $50,000. More importantly, social shoppers from Pinterest spend between $80 and $100 more than their counterparts from Facebook or Twitter. In addition to this, the nature of Pinterest means users reveal what products they are interested in buying. A GroupM Next survey of 250 Pinterest users found that 7 out of 10 users want a friend to look at their Pinterest page when shopping for their birthday present, rather than any other social network.

Pinterest’s latest venture into monetisation seems a reluctant necessity. Sibermann said: ‘It’s so important that Pinterest is a service that will be here to stay. To help make sure it does, we’re going to start experimenting with promoting certain pins from a select group of businesses.’ Similar to other limited tests, we can expect the ad unit to be rolled out more broadly in the near future. In August, Pinterest rolled out ‘price drop notifications’ – email alerts sent to users if a product they have pinned drops in price. It is likely that Pinterest will move further down the track of facilitating e-commerce as a way of creating new revenue. With close to US$340million invested in the company, additional commercialisation can be expected.

Pinterest: PrOMOted PinsPinterest hAs AnnOunced the AdditiOn Of PAid PlAcements

Or ‘PrOmOted Pins’ tO its PreViOusly Ad-free site.

Pinterest May nOt haVe as Many users as facebOOk Or tWitter, but it rePresents an exciting OPPOrtunity fOr Marketers because Of WhO uses the site and hOW they use

siMilar tO Other liMited tests, We can exPect the ad unit tO be rOlled Out MOre brOadly in the near future.

POV: 2013

49

hectOr neil-Mee

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Facebook’s tweak to its app advertising format is set to present marketers with an opportunity to develop adaptive and targeted strategies in mobile advertising. Although in its early stages, the service is considered to have great potential, both for Facebook and participating brands/businesses.

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A study by Localytics, one of Facebook’s mobile measuring partners, reveals that 66% of app users only open an app between one and ten times. In order to help brands and businesses drive engagement and conversions, the new features are designed to reach people who have already downloaded an app and direct them back into specific features, content or products within the app. Businesses can now choose from seven different calls to action within mobile app ads. These include universal actions like ‘Open Link’ or ‘Use App’, along with more vertical-specific calls to action: ‘Shop Now’, ‘Play Game’, ‘Book Now’, ‘Listen Now’ or ‘Watch Video.’ From these calls to action, businesses with deep links can send their existing customers directly into customised, specific locations within their apps, such as new content, sales or product promotions.

The new mobile app ads will allow the maker of a travel app to promote an airfare or hotel room, for example, while a music app like Spotify could promote a band’s new song. Targeting capabilities allow advertisers to avoid users who have recently engaged with the app and also offer basic geographic, age and gender features, as well as interest-based targeting and connections to Facebook objects such as Pages and/or Apps.

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HotelTonight, a popular app for last minute hotel bookings has already been using the new ad format in a testing phase. Deb Liu, Facebook’s executive in charge of the launch commented that the business has seen its app performance increase 10 fold since the test began. The potential for this service is huge with 8,400 (50%) of the top-grossing Android and iOS apps already using mobile app install ads in Q2 of this year, including established brands such as Spotify and Expedia. The increase in advertising revenue has contributed to a doubling in Facebook’s share price since July.

facebOOk’s neW aPP adVertising fOrMatmObile APP instAll Ads hAVe been One Of fAcebOOk’s mOst

successful Ad fOrmAts And hAVe resulted in ArOund 145 milliOn

dOwnlOAds tO dAte. hOweVer, fAcebOOk is nOw lAunching new

‘engAgement And cOnVersiOn’ APP Ads, designed tO sOlVe the

PrOblem Of getting PeOPle tO interAct with APPs mOre Often

Once they’Ve dOwnlOAded them.

the serVice is cOnsidered tO haVe great POtential, bOth fOr facebOOk and ParticiPating brands/businesses.

POV: 2013

50

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Last year Facebook purchased Instagram at a reported cost of $1bn. The move received mixed reviews; at the time Instagram had no way of making money and Facebook was about to head into its IPO. However, considering the success of Instagram’s mobile app, the richness of data Instagram likely added to Facebook and of course the future advertising revenue potential, the purchase made more sense the longer you looked at it.

eridani baker

& OliVer richMOnd

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Advertising on Instagram should be approached as a ‘light and always on’ model similar to other social feeds. Over time nuances in how people respond to this new advertising format will be identified. In the meantime, existing native content learning from Facebook, Pinterest, and Twitter should be applied to any advertising, e.g., historical image posts that have really resonated with fans and followers.

iMPlicatiOns

People have now become accustomed to ads in their online social space, even if they don’t necessarily like them. From a consumer point of view the implications of the addition of ads to Instragram are no different to existing social ads, they’ll learn to ignore them, and occasionally they’ll pay attention to a relevant one. Because Instagram is a purely image based network you are unlikely to see too much evidence of peoples dis-likes, it’s unlikely that many people are going to write down a list of their irritations with the new ad product, take a photo of the list and ‘gram it’. From an advertiser point of view it means another way to reach consumers in the ‘native’ environment.

According to Instagram’s announcement the ads will slowly trickle into US based users’ feeds and will promote brands you may or may not follow. Ads will be both image and video based and only from a handful of brands that already have a strong Instagram presence. Importantly users will be able to hide and provide feedback. Ad placements are as yet unconfirmed, but could appear within Instagram’s Explore tab that shows users which images other users are interacting with. Alternatively they could appear when users search for a specific hashtag or picture as sponsored or promoted links.

Instagram’s public announcement said: ‘Our aim is to make any ads you see feel as natural to Instagram as the photos and videos many of you already enjoy from your favorite brands. After all, our team doesn’t just build Instagram; we use it each and every day. We want these ads to be enjoyable and creative in much the same way you see engaging, high-quality ads when you flip through your favorite magazine.’

ads Will be bOth iMage and VideO based and Only frOM a handful Of brands that already haVe a strOng instagraM Presence.

instagraM: PhOtO streaM adsinstAgrAm hAs AnnOunced it will releAse PhOtO streAm

Ads in the us Only. this fOllOws A recent similAr

‘limited’ releAse Of A new Ad PrOduct by Pinterest.

POV: 2013

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iBeacon is Apple’s branded name for a new Bluetooth Low Energy technology standard and will be included on all new Apple phones. iBeacons are also Bluetooth-enabled micro-location systems – actual physical transmitters. Think of them as NFC on steroids. They not only have a better range than NFC transmitters, up to 50m against just a few inches, but they also enable a wider range of data services. They can be used by retailers, museums and businesses to serve highly relevant interactions to their customers’ iPhones and iOS devices – from coupons and personalised pricing to actual payment. The iOS 7 SDK (software development kit) features iBeacon. The iBeacon functionality will be built into apps for iOS 7, meaning that if a consumer has your app and it is iBeacon-enabled, an iBeacon will alert the app that your customer is in a particular physical location and allow you to serve them offers.

craig Weinberg & Jeff MalMad

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The barrier to entry and long term impact are yet to be experienced. This is especially true when one considers that iBeacons can run for two years on a single coin battery charge, come with an accelerometer, flash memory, a powerful processor and have Bluetooth connectivity. The age of context has barely just begun.

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Customised location-based communication: Customised, in-store retail-to-mobile marketing is much closer to being a reality than we think. The difference between failed past attempts through Wi-Fi, Bluetooth or NFC is that those technologies were never adopted in a scalable way. Through Apple’s app ecosystem with roughly 1M apps and almost 500M iOS devices sold to-date, mass scale is now attainable. For example, imagine walking into your local store with an iPhone 5S or 5C. If that store has enabled an iBeacon zone, it can transmit customised coupons or even walking directions to the aisle where a particular item is located. It can prompt a customer with special promotion or a personalised message and recommendation based on their current location or past history with the company.

The technology will not be hard to integrate and will have scale. Apple is not taking on the burden of producing and developing its own iBeacons. Instead, it is creating an essentially semi-open, but still Apple, walled-garden for the iBeacon platform by creating the standards for the technology and embedding it into its OS, then inviting other vendors to build the actual iBeacon devices.

Right place, right message, right context takes on a different meaning. In the internet of things and the age of context, iBeacon can bring to life the ‘right message, right time’ dream for marketers, at scale, and personalised to individual shoppers. It can even facilitate payments so store wait times may be a thing of the past (think of the current experience of paying through your iPhone when checking out of a physical Apple store).

aPPle ibeacOnAPPle AnnOunced ibeAcOn As A feAture Of iOs 7 At the

wwdc in June. APPle hAs giVen nO detAils AbOut it

And it wAs Only mentiOned in the keynOte Once, but it

cOuld hAVe A PrOfOund imPAct On the retAil-tO-mObile,

cOntextuAl And in-stOre shOPPing exPerience.

the age Of cOntext has barely Just begun.

they can be used by retailers, MuseuMs and businesses tO serVe highly releVant interactiOns tO their custOMers’ iPhOnes and iOs deVices – frOM cOuPOns and PersOnalised Pricing tO actual PayMent.

POV: 2013

52

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Twitter is a popular forum for television viewers to discuss what they’re watching in real-time and Comcast’s partnership with the social network will take this association one step further by connecting millions of Twitter followers to view on any screen. The collaboration represents a development in social television by bringing it to new platforms and satisfying the ever growing desire to watch television wherever and whenever it is desired. Essentially, Twitter could soon replace your remote control.

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Comcast has recently announced a pioneering partnership between NBCUniversal and Twitter; a deal with potentially huge consequences for all involved. In an attempt to link the millions of Twitter users with television viewing, Comcast has designed a new feature called ‘See it’ which will allow customers of its Xfinity TV service to tune in to TV programs, movies and sports by clicking a ‘See it”’ button embedded within a tweet. Comcast CEO Brian Roberts has described the feature as ‘an instant online remote control.’

hectOr niel-Mee

iMPlicatiOns

Each day, Twitter plays host to real-time conversations around the live broadcast of television shows. ‘See it’ will create an overlap between the two. In a typical week, talent show #thevoice generates over 350 million Twitter impressions, but the missing link is how to shift that conversation into consumption. In the future, when NBCUniversal publishes a post about ‘The Voice’ for example, a ‘See it’ button will appear at the end of the post, giving Xfinity customers the option to tune into live programming, either on their television or right from their smartphone or tablet. Users will also have the option to record programmes on-the-go, set reminders and even buy cinema tickets through Fandango, a popular advanced ticket booking service in the U.S. If the user is not subscribed to Xfinity, a link will guide them to NBC’s website or app where the video can be accessed.

The potential benefit for Comcast and NBC is substantial. ‘See It’ will help convert the millions of TV-related tweets into actual viewing to help drive ratings and engagement with viewers. For brands, the major benefit is that NBC’s TV and digital sponsorships can now be extended to Twitter. Through Twitter’s Amplify program, NBC’s entire portfolio can extend the reach of its advertising campaigns and sponsorships to its audiences on Twitter and drive tune-in to its programming. This will allow brands purchasing TV spots to ensure people are watching those spots by promoting them on Twitter, enabling advertisers to purchase the TV spots and digital placements in a single procedure. “NBC’s content is driving the most popular conversations in social media,” said Steve Burke, CEO of NBCUniversal. “Now with this partnership, our advertisers will be able to reach even more of the specific audiences that they desire”. Furthermore, Comcast and Twitter are in discussions with additional distribution partners and television networks to use the ‘See it’ feature to promote their content, meaning the advertising potential can only improve.

tWitter exPands intO tVwith PArtnershiPs between twitter And tV netwOrks

exPAnding rAPidly, it wAs Only A mAtter Of time befOre A

mAJOr cAble PrOVider gOt inVOlVed.

essentially, tWitter cOuld sOOn rePlace yOur reMOte cOntrOl.

POV: 2013

53

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Having a more open ecosystem can only be a good thing for advertisers and so it is refreshing to see partnership between two major rivals. The deal should also generate revenue for both players (although Facebook will take a bigger cut as the publisher), so it is win-win for both.

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From Q1 2014, advertisers using the Google service will be able to benefit from the huge pool of inventory that Facebook provides, using both marketplace ads (found on the right hand side of the page) and newsfeed ads (linking offsite). FBx is an exchange where inventory is bought though a DSP using cookie data, but not Facebook data, and is an increasingly big player in the advertising ecosystem.

Facebook first released FBx in September 2012, however Google’s DSP was conspicuous by its absence and so it was assumed that Facebook did not want to help Google further dominate the advertising landscape and give access to its data. This however was an issue for advertisers and agencies that used Google’s platform as their only DSP, who then had to use an additional platform to access Facebook’s exchange.

Speculation is rife that the sudden partnership has stemmed from Facebook’s purchase of the adserving platform Atlas, which would benefit from cooperation with the industry’s biggest player, Google. In addition, the recent purchase of the social technology platform Wildfire by Google, and integration into its DoubleClick stack, provides another reason for partnership as advertisers and agencies look to measure the effectiveness of social.

luke ellis

& adaM ray

iMPlicatiOns

It will be the current users of DBM who will be able to reap the benefits of the new partnership the most, as they will now be able to buy Facebook inventory without using multiple DSP partners. It should also boost Google’s business in the ecosystem, but has the potential to have the opposite effect on DSPs heavily focused on FBx who will now have to expand their offering to compete. Cost per thousand (CPM) has declined recently on FBx (20% drop January to March), but they are expected to increase when another major player enters the market creating more competition. However, CPMs across Facebook’s exchange are typically lower than on rival exchanges, so it is unlikely this will put buyers off.

dOubleclick bid Manger gets fbx accessgOOgle’s demAnd side PlAtfOrm (dsP) dOubleclick

bid mAnger (dbm) is JOining fAcebOOk’s reAl-time

bidding exchAnge, fbx.

dsPs heaVily fOcused On fbx Will nOW haVe tO exPand their Offering tO cOMPete

POV: 2013

54

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Advertisers have always been encouraged by Google to leverage ad extensions, now it has become essential to running a successful campaign. Advertisers should focus on improving their consumer’s journey in search, while strategically deciding which extensions make the most sense for their business and business goals (to create that positive affinity Google now requires) and update their campaigns as soon as possible. Advertisers also need to closely monitor their CPCs and Quality Scores. Whether they have existing extensions or not, these changes to Ad Rank will impact their business and there is a need to incorporate and adapt to this significant change in paid search advertising.

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In the past, an ad’s position on the SERP was dictated by a combination of two factors: Maximum CPC Bid multiplied by Quality Score. Google is now incorporating the use of ad extensions into the Ad Rank calculation as well. Ad extensions, which are visual enhancements to advertisers’ search ads, such as location or social annotations, are taken into account if two competing ads have the same bid and quality. With this new calculation the ad with the more positive expected impact from extensions will appear in a higher position. The change has been brought in under the umbrella of creating a more relevant ad experience for search users.

iMPlicatiOns

Having extensions and more engaging ad formats has become critical for advertisers to maintain their strong presence and visibility. The new Ad Rank calculation is impacting all accounts opted into the Google search network. Brands need to understand some of the key implications this change will have on ads, in order to continue to have successful campaigns.

Even if advertisers currently use ad extensions, they aren’t necessarily in the clear: While an advertiser may already have ad extensions as part of their campaign, if Google does not deem them as highly relevant to the consumer’s search, Ad Rank is expected to be low. With that said, advertisers not using ad extensions can expect lower Ad Rank as part of this change.

Anticipate changes in your CPCs: Ad Rank is now more important in determining whether your ad is shown with extensions and formats, so brands may need to adjust their bid, improve their Quality Score, or do both for extensions and formats to appear in search results. You may see lower CPCs if your existing extensions and formats are highly relevant. In other cases, you may see higher CPCs because of an improvement in ad position by a competitor, or if new competitors with ad extensions enter the marketplace.

Organic listings move lower down the SERP: Ad extensions create larger paid search ad formats, which consume more space on the SERP. As more advertisers opt into these extensions, we can anticipate organic listings will move further down the page. The result being that consumers may begin clicking on paid listings more frequently, as these units will own the prime real estate ‘above the fold’.

neW gOOgle adWOrds ad rank fOrMulagOOgle hAs chAnged its Ad rAnk fOrmulA, which determines

the Order in which cOmPeting PAid seArch Ads Are disPlAyed

On the serP (seArch engine results PAge).

gOOgle is nOW incOrPOrating the use Of ad extensiOns intO the ad rank calculatiOn as Well.

Whitney sMith & chris lyOn

brands need tO understand sOMe Of the key iMPlicatiOns this change Will haVe On ads, in Order tO cOntinue tO haVe successful caMPaigns.

POV: 2013

55

At the same time as Google’s move, Microsoft has launched a pilot product called ‘Hero Ads’ on Windows 8.1. For brands, ‘Hero Ads’ present a unique opportunity to dominate the search results across branded search queries, and to provide a much richer experience for the brand to engage with its existing and potential customers.

These changes are pushing advertisers to more quickly embrace Google’s growing ad product suite and visual elements at the point of search. If not, advertisers run the risk of losing traffic to competitors who embrace these changes faster, or higher cost per clicks.

brands haVe MOre cOntrOl Of their branded exPerience.

daniel aMbler

backgrOund

The large banner ads are now appearing across the top of branded search results on Google for 30 advertisers in the US including Virgin America and Nike. This is a limited beta test, but as with similar beta programmes it is likely to be opened up to a wider pool of advertisers before becoming a permanent feature. Google has not yet confirmed the price or cost model, but this is likely to be paid on a CPC or CPM basis.

gOOgle banner adslAst week gOOgle begAn testing bAnner Ads within seArch

results in the united stAtes. this fOllOwed chAnges tO the

gOOgle Ad rAnk AlgOrithm, which nOw fAVOurs AdVertisers

using VisuAl enhAncements tO their seArch Ads, such As

lOcAtiOn extensiOns Or sOciAl AnnOtAtiOns.

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Large banner ads are another step towards integrating visual elements into the search results and giving brands more control of their branded experience. With the changes to Google’s ad rank algorithm being rolled out at the same time, it is clear that Google is pushing advertisers to improve their ads in search by forcing them to adopt visual ad formats/extensions so that search results deliver the most relevant results for the end user and more ad revenue for Google.

iMPlicatiOns

This is not a new development in search itself, as Chinese search engine Baidu has been running a similar format for a while. If Google follows the same model this ad format will probably be limited to branded searches; however there is a strong possibility that in the future Google will make the banners more interactive given the recent changes to the ad rank model.

This announcement is a big departure from Google’s original philosophy of keeping the search results pages uncluttered and free of banners. Marissa Meyer famously stated in 2005 that ‘There will be no banner ads on the Google homepage or web search results. Ever.’ As such, many industry experts are questioning Google’s motives as this appears to have a major focus on driving increased ad revenue. However, Google has built its success on not cluttering the search results page, so it’s safe to assume that this product will continue evolving towards positive user engagement.

POV: 2013

56

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Whether the audience and consumers are aware of it or not, most adverts today are targeted in one way or another. Data is captured from most of our daily activities such as travel, shopping, phone calls and surfing online. It has also been said that using your loyalty card when paying in a store might actually give away more personal data than being scanned by a facial recognition tool. The use of cameras in AmScreen’s technology and the fact that it makes assumptions based on how you look could initially upset consumers, however if they are rewarded with relevant offers and discover suitable products opinions could change, but the balance between privacy and personalisation is going to continue to be a key consideration when using this type of technology.

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AmScreen will deliver content to a weekly audience of over five million adults based on their age and gender, scanning and targeting the customers as they queue at the till, then delivering tailored advertisements in real-time. The Tesco network will also be the first to use AmScreen’s audience measurement technology, which can determine basic demographics such as gender, age, date, time and number of people exposed to adverts.

Maxine haMiltOn

& Ollie killick

iMPlicatiOns

Since the announcement last week, there has been a lot of negative reaction from consumers. The comments reflect a public sensitivity to privacy issues. AmScreen says that the technology is only based on face detection, not recognition, and will not record or take any images of the consumers that can be used to identify them. From a marketer’s perspective this tool should help show ads that are more likely to interest a consumer. This type of system will soon be able to read facial expressions too and using this sentiment analysis, along with other internal and external factors such as news and current weather data, screens could adjust the price of goods in real-time.

AmScreen is not alone in being able to provide this sort of technology. Google and Facebook are thought to be developing similar technologies. Google is creating a ‘pay-per-gaze’ ad revenue system, based on the emotions of a user’s face as they look at an advertisement. Facebook on the other hand has revealed that with its huge amount of pictures and data information, it can also use face recognition from an individual’s Facebook pictures and target them with products based on their likes on Facebook.

face-scan technOlOgy tO target adsretAiler tescO is instAlling fAciAl detectiOn systems At

450 Of its uk bAsed PetrOl stAtiOns in A fiVe-yeAr deAl with

digitAl signAge cOmPAny Amscreen.

frOM a Marketer’s PersPectiVe this tOOl shOuld helP shOW ads that are MOre likely tO interest a cOnsuMer.

POV: 2013

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Despite a few teething issues, Tweet-A-Coffee represents a novel and innovative campaign that will encourage engagement with the brand as well as driving sales of Starbucks products. The initiative forms part of a broader trend of brands utilising Twitter as an e-commerce platform. Other examples include American Express, which initiated a program that allowed its cardholders to make purchases via a hashtag.

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With little or no difficulty, the Tweet-A-Coffee program will allow spur-of-the-moment acts of generosity between friends and will enable users to connect with people they would love to meet for a cup of coffee, but will probably never get the chance to. By simply tweeting another Twitter user, a $5 gift card can be transferred.

hectOr niel-Mee iMPlicatiOns

The larger significance of this partnership is that companies such as Starbucks are gradually beginning to see Twitter as a potential e-commerce platform. Tweet-A-Coffee requires users to sync their twitter accounts with their Starbucks accounts. Having done this, users can simply tweet ‘@tweetacoffee to’ followed by a friend’s Twitter handle. To begin with Starbucks are only offering $5 denominations, redeemable by printing out the eGift or loading it to a personal Starbucks digital card. In an effort to make the service as efficient as possible, Twitter and Starbucks have made the system smart enough to recognize that RTs and @replies to an eGift do not necessarily mean a user is intending to send another gift.

Adam Brotman, Starbucks’ Chief Digital Officer hopes that the service will have such a low barrier of entry that it becomes difficult to resist, hoping that Tweet-A-Coffee will naturally foster in-the-moment instances of users “thanking someone or acknowledging an act of kindness” with a Starbucks eGift. To support the launch, the company is giving the first 100,000 customers who use the eGift tweet service a $5 eGift card for themselves.

For Starbucks, the potential benefits of Tweet-A-Coffee are huge; the service will give the brand a new digital and social avenue through which to interact with consumers. A secondary benefit is that the service will probably drive business to Starbucks stores and may entice more people to use Starbucks’ digital tools. When commenting on the potential for Tweet-A-Coffee Brotman stated: “We view it as the first step toward many things we can do with Twitter that are commerce related.”

tWeet-a-cOffeeOn the 28th Of OctOber stArbucks cOffee AnnOunced

A surPrise PArtnershiP with twitter, enAbling gift

certificAtes tO be exchAnged ViA tweets.

fOr starbucks, the POtential benefits Of tWeet-a-cOffee are huge

POV: 2013

58

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This development comes as Facebook and Twitter are seen to be vying for superiority as the destination of choice for audiences looking to talk about their favorite TV shows, whilst also seeking to maximise revenues from advertising related to TV. To date Twitter has had a big advantage in that it offers an ad targeting option that can help brands reach the same viewer twice, firstly on TV, but also on Twitter.

The technology that is powering this service is Civolution’s ad-triggering service, SyncNow, which has been integrated with Optimal’s Open Signals platform.

SyncNow is an ACR (automatic content recognition) solution which is linked to one of the largest commercials databases in the world. Open Signals enables advertisers to synchronise their Facebook advertising campaigns with multiple outside data feeds such as offline revenue, inventory levels, weather conditions or coupon redemptions. Brands can then optimise their ads in real-time based on metrics that are affecting actual business performance. The partnership enables brands to select which television ads they would like to synchronise with (whether it be their own or competitors) in real-time to a Facebook ad campaign.

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From the initial results published, the benefits for brands of supplementing programmatic buying with TV content identification are evident. The pilot program of this targeting methodology found that where Facebook News Feed ads were synched in real-time to TV broadcast spots, they experienced over 60% lift in CTR, whilst ads synched to competitor ads saw over 35% lift in CTR when compared with a control group. This approach could in the near future prove to be the go-to tactic for deploying high value tactical Facebook buys around contextually relevant TV content.

Phil JacksOn

iMPlicatiOns

Following the announcement of this new product, brands will now be able to buy ads that will reach people on the social network at the same time as their ad is showing on television. For brands concerned about the challenge that companion devices pose to viewer attention of both TV programming and advertisements, the announcement of this product is significant. To re-connect with those audiences who find themselves focusing more and more on their 2nd screen during commercial breaks, TV synched advertising on these devices provides a tangible opportunity to yield higher engagement levels and greater return on total ad spend.

At this stage this approach cannot be considered as refined as the one available on Twitter, because no Facebook data is integrated and therefore there is no definitive evidence that users are actually talking about a show. Nevertheless for the time being, reaching someone who is potentially watching TV but not fully engaged is still an appealing proposition and this is a situation that Facebook is likely to be monitoring closely in terms of shaping their evolving ad suite offering.

tV-sync facebOOk adsOn the 23rd Of OctOber ciVOlutiOn AnnOunced A PArtnershiP

with OPtimAl tO enAble brAnds tO PurchAse fAcebOOk Ads

frOm the fbx in synchrOnisAtiOn with tV cOmmerciAls.

reaching sOMeOne WhO is POtentially Watching tV but nOt fully engaged is still an aPPealing PrOPOsitiOn and this is a situatiOn that facebOOk is likely tO be MOnitOring clOsely

POV: 2013

59

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Through both these products Twitter is strengthening its ties with television. Twitter’s customers use it for real-time conversations about their favorite shows, and Twitter has embraced this trend by creating products to connect brands with those users. The purchase of Bluefin Labs was the first step in this direction and these TV-to-tweet products are the next, but they surely will not be the last.

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In order to know if either, or both, of these products is a good fit for a brand, it is important to note their differences:

TV Ad Targeting: was launched in May and uses the digital fingerprinting technology acquired in the Bluefin Labs purchase. It algorithmically determines which commercials were shown during which programmes, and serves a brand’s Promoted Tweets to users who likely were watching those shows. The primary use is to remarket to consumers who likely saw the brand’s television commercial recently. It is only available in the US and is best for brands with large, national television campaigns, with ads airing across a variety of shows and networks.

TV Conversation Targeting: is a new launch. It allows marketers to target Promoted Tweets to consumers of a specific television programme. Similar to Ad Targeting, Twitter algorithmically determines users who likely watched a show and serves them Promoted Tweets. The main difference between Conversation Targeting and Ad Targeting is a brand determines which programmes to target, rather than using Twitter’s digital fingerprinting algorithm. It is available in the US and UK and is best for brands with close ties to a specific show through ads or otherwise. For example, a brand integrated with a show through sponsorship or product placement would need to use Conversation Targeting because the fingerprinting algorithms of Ad Targeting would not recognize those signals.

Jesse WOlfersberger

iMPlicatiOns

These two products can be used in tandem for brands that want to ensure maximum reach of as many Twitter users as possible who had recently seen that brand’s commercial. Beyond the nuts and bolts of targeting methodology, Conversation Targeting gives marketers a new way to be creative with their Promoted Tweets. Because the brand is targeting a specific programme, its social team can create tweets referencing the plot of the episode or the events of an award show, making for a more relevant and engaging brand message. For example, imagine Oreo’s now-famous ‘Dunk in the Dark’ tweet not only sent out to Oreo’s followers, but also delivered as a Promoted Tweet to people watching the Super Bowl.

tWitter’s “cOnVersatiOn targeting”twitter hAs lAunched A new AdVertising PrOduct, tV

cOnVersAtiOn tArgeting, tO sit AlOngside its existing tV-

centric tV Ad tArgeting Offering.

because the brand is targeting a sPecific PrOgraMMe, its sOcial teaM can create tWeets referencing the PlOt Of the ePisOde Or the eVents Of an aWard shOW, Making fOr a MOre releVant and engaging brand Message.

POV: 2013

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It is impossible to know why Apple has bought PrimeSense, but it’s unlikely to just be an acq-hire aimed at bringing in talent. Apple built its business focusing its resources on particular issues and areas of consumer life; it would be strange if that has changed now. It is easy to see how this company might help Apple bring its mythical TV to reality, but it’s also not much harder to see how it might help it take its map product to the next level. In fact, when you consider that Apple is the company that brought existing touch technology to the mass market, it’s easy to imagine that Apple might bring the next generation of PrimeSense’s technology to everything it does.

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PrimeSense is a specialist in motion tracking and gesture based controls. Apple has been typically quiet on the matter, saying only that “Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans.” This has not stopped tech blogs and commentators from speculating on both the price tag (somewhere in the region of $300m) and the reasons for the purchase.

ciaran nOrris

iMPlicatiOns

Every move that Apple makes is pored over for meaning and this deal is no different. The work that PrimeSense did with Microsoft on Kinect, whilst not ground-breaking, certainly made a huge impact on the consumer market – it was the fastest selling ever consumer tech device and brought into the home technology previously only found in labs and R&D facilities – so expectations are high about what Apple might do with it. There seem to be three main possibilities for how Apple will use the technology and talent it has just acquired: entertainment, mapping and the internet of things.

The entertainment angle is an obvious one. Rumours have been rife for years that Apple will make a fully-fledged Smart TV, rather than just its current set-top box which delivers iTunes. Building in the next generation of motion detecting technology could be a key part of this effort. There are suggestions that Apple might take on Microsoft and Sony in the console wars as another way of becoming the centre of the modern living room, but that is a very expensive game in terms of investment (not that Apple is short of cash).

Another avenue would be for Apple to make use of PrimeSense’s more recent developments, many of which apparently surround mapping. Its chips are already being used to map three-dimensional spaces and this would chime with another recent Apple purchase of an indoor GPS company. Apple has bet big on maps; its decision to create its own maps app and ditch Google was a PR disaster. It appears to have powered through these issues now and so it would make sense to continue to beef up its capabilities. After all the founder of Waze (a mapping app bought by Google) has described maps being for mobile what search is to the web.

The final route being suggested is also based on PrimeSense’s new range of sensors which map 3D spaces, but in using these to connect together untold consumer devices. These might allow you to take a photo of an old kitchen appliance so that a system could then suggest one that would fit the same space. Or even chips that recognise your friends when they arrive at your front door or warn you if you put too little flour in a recipe. This may sound too futuristic, but as Kinect demonstrated, the future is often much nearer than we realise.

aPPle buys PriMesenseAPPle hAs bOught the isrAeli tech cOmPAny thAt wOrked

with micrOsOft On the PrOduct thAt becAme kinect

it Was the fastest selling eVer cOnsuMer tech deVice and brOught intO the hOMe technOlOgy PreViOusly Only fOund in labs and r&d facilities

fAcebOOk.cOm/mindshArefAcebOOk.cOm/mindshAreAdAPtiVemArketingtwitter.cOm/mindshAreyOutube.cOm/mindshAre