Getting Consumers Onside with Advertising Advertising in the eye of a consumer: The crucial numbers How we’re losing track of the customer / Getting them back on board Managing our obsession with data and mobile Oct // 2!16 Sharing data for better marketing Sponsored by Why the user holds the key to ad blocking’s demise Q&A: Looking ahead @nmpi_digital Performance Paid Search. Get in Touch with our Partnerships Team: [email protected] !3 PerformanceIN.com // Getting Consumers Onside with Advertising Foreword Contents As a neutral party, I bear witness to a lot of conversation 04 Advertising in the eye of between members of the performance marketing space. a consumer The crucial One of the most dominant points of discussion are the numbers challenges and opportunities faced by many of the channels that make results-based marketing what it is. 06 How we’re losing The industry, despite its multi billion-pound work and track of the customer / bags of innovation, can be very self-critical a stance that can only be commended Getting them back on considering the position it’s in. board In amongst its great work, the current landscape makes way for ad-blocking audiences, 08 Managing our obsession metrics that encourage certain members to bid on hundreds of impressions to gain just one click from a user, while even the onset of data-driven marketing has created with data and mobile a lot of room for improvement. 10 Sharing data The upshot of all of the above is advertising’s questionable ability to serve the very for better marketing people on the receiving end of it. We may not have lost track of the customer - who 12 Why the user holds the key treats channels like paid search as a genuine service - but there is an underlying reason why we’ve seen a shift in companies looking to become more consumer- to ad blocking’s demise centric in their approach. 14 Q&A Looking ahead As we prepare to look over the hill of 2016 and into the immediate future, channels like display, paid search and affiliate marketing are being tipped for radical change, and we felt it was time to create a resource that summed up the situation at present and provide clues as to how we get closer to what the consumer needs. Working with leading performance marketing agency NMPi, we leapt at the chance of creating a supplement that would compile the thoughts of advertisers, agencies, networks and publishers regarding some of the industry’s biggest challenges, and Brought to you by how addressing them will benefit audiences around the world. Richard Towey Head of Content, PerformanceIN I’d like to personally thank NMPi for its invaluable input with the supplement as well as our expert contributors from All Saints, Savoo, Acquire, Affiliate Window, Mark Jones Editorial Executive, PerformanceIN Conversant and Digitas LBi. Monika Komar We hope you enjoy what you’re about to read. News and Features Reporter, PerformanceIN Jonathan Chubb Senior Designer, PerformanceIN Mark Atherton Sales Manager, PerformanceIN Richard Towey, Head of Content, PerformanceIN Contact & Advertising Content Enquiries: [email protected] Advertising Enquiries: [email protected] Postal Address: PerformanceIN, 7.17 & 7.18 Deco Building, Paintworks, Bath Road, Bristol, UK BS4 3EA © 2016 – All rights reserved. Reproduction in whole or part without written permission is strictly prohibited. !4 PerformanceIN.com // Getting Consumers Onside with Advertising Advertising in the eye of a consumer: The crucial numbers 48% strongly agree 21.2% Online ads are more intrusive Brits use an ad blocker than they were 2-3 years ago Reasons for using an ad blocker Why do people click? The ad was… Ads are intrusive 64% Interesting 40% Ads are disruptive 54% Paid search 21% Security concerns 39% Visually appealing 13% They affect bandwidth 36% Privacy concerns 32% Which formats aren’t working? (Viewed as extremely negative) Telemarketing 76% Pop-ups 63% Autoplay video ads 48% Online video ads 22% !5 PerformanceIN.com // Getting Consumers Onside with Advertising The most useful ads Paid search ads 57% 71% Social media ads 47% of consumers want ads Video ads “in game” or on YouTube 46% tailored to their personal DISPLAY Display ads 37% interests and shopping habits Two thirds of 1/ 10 consumers understand 75% the need for ads, while want fewer ads, with just one in ten report a everything aligned to ⅔ positive experience. who they are Why personalise ads? (the consumer’s view) Makes ads more relevant 46% Good way to discover new products 25% Makes searching for items faster and easier 19% 54% of users don’t click banner ads because they don’t trust them REFERENCES https//www.iabuk.net/research/library/ad-blocking-software-consumer-usage-and-attitudes-july-2016 https//research.hubspot.com/reports/why-people-block-ads-and-what-it-means-for-marketers-and-advertisers https//research.hubspot.com/charts/experience-created-by-ads https//research.hubspot.com/reports/why-people-block-ads-and-what-it-means-for-marketers-and-advertisers https//research.hubspot.com/reports/why-people-block-ads-and-what-it-means-for-marketers-and-advertisers https//research.hubspot.com/reports/why-people-block-ads-and-what-it-means-for-marketers-and-advertisers httphttp//www.adlucent.com/blog/2016/71-of-consumers-prefer-personalized-ads///www.adlucent.com/blog/2016/71-of-consumers-prefer-personalized-ads/ http//performancein.com/news/2016/09/09/92-consumers-demand-improvements-video-ads-spite-channel-growth/ http//www.bannersnack.com/blog/build-trust-display-ads/ !6 PerformanceIN.com // New User Acquisition in Affiliate Marketing How we’re losing track of the customer It would be unjust to say online advertising is reaching a crisis point. The medium is responsible for driving ad spend worldwide this year up 4.6%, to a worth of $579 billion. ut, that said, recent studies associations believe the message is finally their surroundings. It’s perhaps why ‘native’ and events provide indication getting out, but the current environment may is a runaway contender for buzzword of the that years upon years of system not make for the best conditions on which year. B playing, last-click chasing and to base large-scale change. intrusive behaviour undertaken by some For every tailored item in the sidebar there corners of the industry may have done some Retargeters looking to encourage the last is a pop-up or a pre-roll video, both of which damage. click before a purchase will often play are attracting billions in spend but spurring the volume game to ensure they fend on a bad consumer reaction, if certain studies In an era where choice is bestowed on off the necessary competition. With so are to be believed. web users, 21.2% of those based in the UK few advertisers claiming to have a single are deciding to block advertising. Rapid customer view, there will always be the Ad-blocker adoption may represent an adoption of tools like Adblock Plus is said chance of irrelevant messages being served, intimidating issue to conquer, although to have harmed the display advertising while the race for data - a huge positive in the alarm isn’t being sounded on its own. industry to the tune of $21.8 billion the long run - is putting a ‘spooky’ edge to Consumers are more concerned than ever annually worldwide, with complaints over creative when done in the wrong way. about their privacy online - ironically during a intrusiveness, disruption to web journeys period where advertisers are spending small and a lack of privacy topping the list of Positives stem from genuine service- fortunes on the tech that will allow them to ‘reasons for’. led channels like paid search, where an get even more information on the people advertisement can guise as exactly what the they’re selling to. Numerous experts representing some of the user is consciously looking for. Facebook’s biggest brands, agencies and publishers have user count has only grown since the presence There is a gaping chance to use this power voiced their opinion over what this could do of sponsored listings on its news feeds, pages for good, but there is certainly work to be to the publishers whose content is funded and games, but there is a lot to be said for done going forward. by the very ads being blocked. Advertising platforms that can merge advertising into !7 PerformanceIN.com // New User Acquisition in Affiliate Marketing Getting them back on board Users are demanding greater relevance audience segments, don’t be surprised to New EU data protection laws are set to shake out of their advertising and this would not see some of this spend trickling down to up sections of the industry that refuse to play be a bad place to start when it comes to smaller sites, too. by the rules when it comes to user targeting, improvements. If more attention is paid to with this being ever-crucial in a period where what the user wants – perhaps with a view Will ad blockers continue to hug the intent data is worth its weight in gold. to sending them fewer, more meaningful headlines? Given the threat of losing their messages – a positive reaction will follow. favourite columns, podcasts and web series Access to personal information has the ability – and the direct approach adopted by many to change advertising as we know it. The Tackling the purported issues with publishers – consumers may wish to revise same applies to mobile targeting again, a ‘intrusiveness’ may not be as easy, the ramifications of blocking the odd display scenario where things could go wrong if the considering the large amount of subjectivity advertisement from entering the space next offers delivered to phones by nearby shops involved.