Author: Richard Yao

Event Recap: AdWeek — The Future Of Measurement

Posted on by Richard Yao

CBS’ Chief Research Officer David Poltrack, CMO of AOL Advertising Erika Nardini, and IPG Mediabrands’ Global CEO Matt Seiler came together this morning to talk about the future of audience measurement in a hyper-connected, multi-platform world.  Representing the three key facets of the market (media companies, digital advertisers, and agencies, respectively), the three panelists debated shifting consumer behaviors and how the industry is adapting to such changes.

Time- and place-shifting

The increase in watching content on different devices, and different times, has greatly affected traditional measurement.  “As a network, CBS is still reaching as much audience as we did back in 2000, once the DVR numbers factor in,” said Poltrack, “but we are now reaching an audience where 62% of them are also simultaneously on mobile devices,” which poses new challenges to audience measurement. Nardini agreed with him while adding that “mobile is the future, and our mobile strategy is ‘video strategy’”.

Receptivity

“Ad performance is no longer entirely about impressions or other traditional metrics,” Nardini explained, “it’s about resonating with the audience through a message”. Poltrack also commented on CBS’ recent efforts in bringing in long-term ad effects that are monitored throughout the whole span of ad campaigns into consideration, citing that the long-term effect is usually 2 or 3 times higher in key measurements than the short-term effect.

Simplicity

As Mr. Seiler reminded the audience, “at the end of the day, simplicity always wins”. Speaking from the agencies’ perspective, clients aren’t interested in overcomplicated media plans and metrics. Setting up a cross-platform programmatic ad system is central to simplifying and unifying the scattered development in audience measurement.

 

Brands: Don’t Ignore Data Security Concerns

Posted on by Richard Yao

In our recent POV on the “data dilemma” that most brands face regarding data collection, one crucial point we highlighted was security. If a brand can’t ensure data security, consumers will be reluctant to do business with the company.

As recent news reports indicate, however, brands aren’t clueless about the need for data security so much as willfully ignoring it until it’s too late. News of the massive credit card breach at Home Depot earlier this month marked the biggest consumer data breach in recent history, yet the retailer was reportedly aware of the security problem as far back as 2008 and did nothing about it. Similarly, Apple is now also accused of willfully ignoring the iCloud security issues long before the celebrity photo breach happened.

As both companies scramble to deal with the aftermath of losing consumer trust, this should serve as a lesson to all brands: collected consumer data must be managed with proper encryption and other up-to-date security measures. Otherwise, ignore early concerns about data security at your own risks.

For more actionable insights on how to keep data secure and consumer trust in tact, download our newest POV here.

POV: How Can Consumers Trust Brands With Personal Information

Posted on by Richard Yao

Download the POV here.

You may think of consumer data collection—and the resulting privacy concerns—as “corporate evil-doing”. But really, it’s just a delicate value exchange that most brands have yet to figure out how to manage.

In order for consumers to trust brands with their personal data, brands must actively take steps to ensure that:

  • Consumers consent to data collection
  • Once collected, data remains secure
  • Data proves helpful to both the brand and the consumer

Learn more about how to win that consumer trust by downloading the POV here.

 

 

On Trend: Car Radio Going Digital

Posted on by Richard Yao

Earlier this week, Clear Channel, the media company that owns most of America’s big broadcast radio stations, changed its name to iHeartMedia, after its fast-growing digital-radio platform iHeartRadio. This rebranding effort puts Internet-based radio front and center, which makes sense in today’s digital age, when digital newcomers like Pandora and Spotify are challenging radio’s relevancy.

The car is the last bastion of traditional broadcast radio because very few cars have access to the Internet. But that’s about to change, as more cars become connected to the Internet and more digital radio services become available. According to a recent study by Edison Research and Triton Digital, over a quarter of U.S. smartphone owners has streamed radio from their handsets in cars, a sharp increase from a mere 6% just 4 year ago.

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In fact, the gradual shift towards Internet-based radio is so evident that even Sirius, the biggest subscription-based satellite radio operator, is reportedly eyeing the move to digital radio. Right now, Sirius heavily relies on their partnership with automakers to get their satellite-radio receivers installed in the cars. But that will have to change if it wishes to compete with the likes of Pandora, which can be easily accessed from mobile devices.

That being said, broadcast FM.AM car radio will probably hang around a bit longer, because it’s free, easy to use, and benefits from a strong broadcast signal. As Internet connectivity in the car improves, however, the trend towards digital radio dominance is basically inevitable.

By The Numbers: The Imminent Future Of OTT Market

Posted on by Richard Yao

With the rapid rise of content-streaming services like Netflix and Hulu, terms like “cord-cutting” and “over-the-top (OTT) services” have also entered our lexicon. But how far will those new OTT services go in transforming the way we consume media content? Let’s look at two telling graphics from our recently published white paper on the OTT market.

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As the chart indicates, connected platforms supporting OTT services are clearly forecasted to increase. “Smart” connect TVs, in particular, will see significant adoption in the next few years, thanks to the increasingly common partnerships between television manufacturers and streaming device makers like Roku.

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The proliferation of OTT platforms and services means a gradual decrease in the number of total traditional multichannel subscribers, with 2014 potentially being the tipping point. If these predications stand, the industry would soon be feeling the huge impact of OTT companies.

For more in-depth analysis and insight on the OTT market, download our white paper here.

How Macy’s Is Making Personalized Shopping Convenient Across Platforms

Posted on by Richard Yao

With the rise of ecommerce, brick-and-mortar retailers are facing increasing challenges from the digital stores. But national chain store Macy’s is staying ahead of the market with two power moves that make shopping more personalized and convenient for its customers across platforms.

The first step it took was embracing beacon technology. Macy’s announced that it is expanding the use of Shopkick-powered iBeacons to all of its stores nationwide over the next 2 months, just in time for the upcoming holiday shopping season. When completed, it will be the largest beacon installation in retail history, and provide Macy’s customers with highly personalized, interactive retail experiences.

Furthermore, the retail mainstay announced plans to offer same-day delivery service later this fall, effectively eliminating one key advantage of its digital retail competitors. Online shoppers in eight selected markets would soon have a consistent and convenient cross-platform shopping experience, whether on the web stores or mobile apps of Macy’s and its upscale subsidiary Bloomingdale’s.

As we pointed out in our recent POV on multi-platform shopping, successful retailers integrate points of sale to create a consistent customer experience, which is exactly what Macy’s is trying to achieve here. By embracing the beacon technology and on-demand economy, the 156-year-old retailer shows its strength in adapting to the changing market.

Everybody Wants To Rule The World Of OTT Calling

Posted on by Richard Yao

Last week, Apple’s announcement that they would enable WiFi-based calls in iOS 8 sparked interest, but people have been enjoying free phone calls by using various OTT services for years. However, the market is currently undergoing a major shake-up, as telecom companies enter the market previously dominated by third-party VoIP apps.

VoIP Apps

Released back in 2003, Skype was among the earliest third-party apps to support Voice Over IP (VoIP) service. Although reasonably priced, the charges for calling landlines and mobile phones limited the scale of Skype’s VoIP usage, leaving the door open for other mobile apps like Tango and Viber to complete with better mobile user experiences and lower pricing. And earlier this year, a Singapore-based startup introduced Nanu, an app that supports free calls to non-Nanu users by playing a short ad over the connecting ringtone. Google also recently updated its Hangouts app to add Google Voice integration, which allows users to dial and receive VoIP calls.

The Telecom Companies

With the popularization of smartphones and high-speed mobile data connectivity, the movement towards OTT communication has reached a tipping point. Verizon and T-Mobile started with Voice over LTE (VoLTE) that allows carrying phone calls over the high-speed LTE networks. Apple’s announcement prompted major carriers like T-Mobile and AT&T to announce upcoming WiFi calling services soon after. And unlike VoIP that most third-party apps use, WiFi calling could jump from the carrier network to Wi-Fi seamlessly.

The Dark Horse

At this point, mobile carriers aren’t the only ones jumping on the OTT calling wagon— WhatsApp, the Facebook-owned messaging app, is reportedly set to add Internet-based voice calls soon. And with over 600 million monthly active users, it might just become one of the major players in the increasingly saturated OTT calling market.

On Trend: The Convergence of Tech and Fashion

Posted on by Richard Yao

The flirtation between tech and fashion has long been on our radar, and with the introduction of the Apple Watch earlier this week, the convergence of wearable tech and designer fashion has officially become a full-blown affair.

The trend started because both industries need each other. For tech companies, collaborating with the fashion industry helps to push out the new products with that extra sheen. This is especially true for the wearables, frequently dubbed “ugly” and “un-wearable” for their often bulky and unpolished designs. And the tech industry is realizing that making their wearables “fashionable” is a pre-requisite for mass adoption. For instance, Fitbit gave its fitness tracker a makeover by teaming up with Tory Burch, while Samsung is collaborating with Swarovski to offer bedazzled straps for its new Gear S.

On the other hand, many fashion brands are embracing technology in order to stay ahead. For the younger generations, technology is quickly replacing fashion, as many members of Gen Y and Z cite the newest handset as a higher purchase priority than the fashion fad of the season. In order to keep fashion “in fashion”, the industry is more than happy to incorporate the newest tech into the new looks. The “smart” accessories are being prominently featured on the runways of New York Fashion Week. And earlier last month, Ralph Lauren has also embraced new technology and developed its first item of smart sportswear.

Now with Apple unveiling their first wearable product, this trend is going stronger than ever. The Cupertino company geared up for its Apple Watch reveal by first poaching several executives from luxury fashion brands, and inviting key fashion influencers to the launch event. And it worked, receiving mostly positive reactions from the fashion world for its polished design, multitude of styles, and plenty of customization options. In the foreseeable future, this trend will most certainly continue, as such integration helps normalizing the otherwise “geeky” new tech products, especially the wearables, in a way that is mutually beneficial for both industries.

By The Numbers: Phablets On The Rise

Posted on by Richard Yao

With the announcement of 5.5-inch iPhone 6 Plus yesterday, Apple is officially jumping on the bandwagon of “phablets”—phones with big, tablet-like screen—after years of resistance. Why the change? Because the tide has changed and phablets have gained considerable momentum in popularity, as the following infographics from Flurry illustrate.

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Android phone-makers such as Samsung and HTC have led the movement towards bigger screens. There is little doubt that the phablets’ 11% annual increase among all Android devices signals growing consumer demand for larger phones.

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Furthermore, in the past year the phablets have almost quadrupled their share of app sessions, an indicator of actual device usage that are crucial to app developers and mobile marketers.

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Looking deeper into the behavior data of the phablet users reveals that they are more likely to fall into the affluent and influential demo that brands covet. Now with Apple finally on board, we can only expect this trend to continue.

 

3 Implications Of Apple’s New Health Apps

Posted on by Richard Yao

Part dev kit and part health app, the HealthKit announced back in June marked Apple’s official foray into the field of health care. But today the company fully revealed its grand plan with two separate health-centric apps—Activity and Workout. These new developments will affect consumers in three key areas:

1. They will boost the wearable fitness trend

Since constant data gathering is crucial to the HealthKit’s success, it makes sense that Apple is releasing the Apple Watch. As the phones get bigger, it’s especially important to have an unobtrusive device assisting the health monitoring.

2. They will usher in a new era of the “quantified self 

Apple’s push for self-monitoring will certainly further the current trend towards “quantified self”, in which people use technology to collect data in order to improve their own lives.  We’ve seen a number of wearables and apps measure fitness, sleep, and more, but Apple’s ecosystem will undoubtedly make the biggest splash.

3. They will help Apple to become the hub for health data

Apple was reportedly in serious talks with major healthcare providers to convince them to adopt HealthKit, which would in turn make Apple a central “hub of health data”. Judging by Apple’s wording today, it seems like they are still in deep negotiation with the health care industry for further infiltration. Just as the iPod revolutionized the music industry a decade ago, there is little doubt that that Apple is looking to repeat its success in the healthcare field.