MediAvataar's News Desk

MediAvataar's News Desk

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Let us cut to the chase. Facebook, Google and probably Amazon store everything you do in the digital domain. But any marketer who believes that true ad relevance is ever achievable should take a hard look at how the sites and apps they use classify them as individuals.

Here is what a recent report from the Pew Research Center has to say about the process by which companies figure out what site users might be interested:

“It is clear the process of algorithmically assessing users and their interests involves a lot of informed guesswork about the meaning of a user’s activities and how those activities add up to elements of a user’s identity.”

The report details the results of a survey focused on Facebook’s categorization of individual’s interests as represented by their “Your Ad Preferences” page. Not surprisingly, 74 percent of Facebook users did not even know the page existed but when directed to it 51 percent stated they were not comfortable with how the site categorises them, and 27 percent thought the categorization inaccurate.

Reading the report reminded me to check out my own Ad Preferences page. Assuming that the classification shown is an accurate representation of what Facebook thinks my interests are it is laughable. Apparently, I once clicked on an ad for Entre Rios Province in Argentina? Someone uploaded a contact list that brought me to the attention of a Land Rover dealer in San Antonio, a Toyota dealer in Colorado Springs and a Maserati dealer in Scottsdale? Oh, and I once liked a page related to “Life”. Yes, and I intend to enjoy it as long as possible.

Most of the categories are less than ‘informed guesswork’ and more literal interpretation. Take for example, the fact that I liked a page about “Yacht Racing”. Yes, I probably did. Why? Because my godson, Hugh, is a solo, deep sea, sailboat racer and I follow his progress with interest. It would not take a genius, or artificial intelligence for that matter, to realise that the only pages I have liked or viewed relate to events that feature Hugh, not yacht racing in general.

This problem of incorrect inference applies to all the data collected, including the behavioural data gathered from your mobile. My colleague Jane Ostler gives this hypothetical example of how geolocation can go astray,

“According to my mobile’s location data I am a regular at the gym. I spend half an hour there twice a week, and therefore see many, many ads for protein powder targeted at gym regulars. But my gym could be right next door to a donut shop, and I could in fact be stuffing my face with donuts twice a week.”

I have no doubt that behind the scenes Facebook can create a far more detailed and accurate profile of my behaviour and interests. The data is all there to be used. If an advertiser really wants to serve me relevant ads they should be taking all this information into account. But how many really do? From what I see, most simply take the basic classification and run with it.

 

Written by Nigel Hollis,Executive Vice President and Chief Global Analyst at Kantar Millward Brown.

Sunday, 17 March 2019 00:00

2018 Advertising Expenditures in Japan

Detailed analysis of spending on Internet advertising media jointly carried out by D2C Inc., Cyber Communications Inc. and Dentsu Inc. 

Three companies in the Dentsu Group have released a survey titled "2018 Advertising Expenditures in Japan: Detailed Analysis of Expenditures on Internet Advertising Media." This survey analyzes the results of "2018 Advertising Expenditures in Japan" published by Dentsu in February 2019--and further breaks down data on Internet advertising media spending. The analysis presents data according to such variables as ad category, method of transaction, and type of device on which ads were viewed. Furthermore, it also includes forecasts for 2019.

In calendar year 2018, advertising expenditures in Japan totaled 6,530.0 billion yen. Internet advertising accounted for 26.9% of advertising expenditures, growing 16.5% compared with the previous year, to 1,758.9 billion yen. After excluding Internet advertising production costs, Internet advertising media expenditures amounted to 1,448.0 billion yen (up 18.6% compared with 2017), exhibiting continued robust growth.

The survey, which has been conducted since 2017, comprises estimates produced jointly by three companies in the Dentsu Group that operate in the Internet advertising sphere.

Key Points of the "2018 Advertising Expenditures in Japan: Detailed Analysis of Expenditures on Internet Advertising Media" follow.

1. In the 2018 ad category breakdown, approximately 80% of the total media spend was for paid search advertising and display advertising.

Two ad categories--paid search advertising (39.4%) and display advertising (38.9%)--accounted for approximately 80% of the total. The next largest category was video advertising (14.0%). By transaction method, performance-based advertising accounted for approximately 80% of the total.

2. Mobile advertising media expenditures exceeded one trillion yen for the first time in 2018.

Within the estimated 1,448.0 billion yen spent on Internet advertising media, mobile media expenditures accounted for 70.3% of the total, amounting to 1,018.1 billion yen.

3. In 2019, Internet advertising media expenditures overall are forecast to grow 15.9%, to 1,678.1 billion yen.

Underpinned by strong growth in mobile advertising, in 2019 Internet advertising media expenditures are forecast to increase 15.9% overall, to 1,678.1 billion yen. This comprises 1,249.3 billion yen in mobile advertising (up 22.7%) and 428.8 billion yen in desktop advertising (down 0.2%).

4. Video advertising media expenditures amounted to 202.7 billion yen, and are forecast to grow to 265.1 billion yen in 2019.

The rapidly expanding category of video advertising recorded media expenditures of 202.7 billion yen in 2018, and are forecast to increase 30.8%, to 265.1 billion yen in 2019. Of this forecast, mobile video ads are expected to grow 39.3%, and become an important growth driver for the entire category.

Sunday, 17 March 2019 00:00

2018 Advertising Expenditures in Japan

Detailed analysis of spending on Internet advertising media jointly carried out by D2C Inc., Cyber Communications Inc. and Dentsu Inc. 

Three companies in the Dentsu Group have released a survey titled "2018 Advertising Expenditures in Japan: Detailed Analysis of Expenditures on Internet Advertising Media." This survey analyzes the results of "2018 Advertising Expenditures in Japan" published by Dentsu in February 2019--and further breaks down data on Internet advertising media spending. The analysis presents data according to such variables as ad category, method of transaction, and type of device on which ads were viewed. Furthermore, it also includes forecasts for 2019.

In calendar year 2018, advertising expenditures in Japan totaled 6,530.0 billion yen. Internet advertising accounted for 26.9% of advertising expenditures, growing 16.5% compared with the previous year, to 1,758.9 billion yen. After excluding Internet advertising production costs, Internet advertising media expenditures amounted to 1,448.0 billion yen (up 18.6% compared with 2017), exhibiting continued robust growth.

The survey, which has been conducted since 2017, comprises estimates produced jointly by three companies in the Dentsu Group that operate in the Internet advertising sphere.

Key Points of the "2018 Advertising Expenditures in Japan: Detailed Analysis of Expenditures on Internet Advertising Media" follow.

1. In the 2018 ad category breakdown, approximately 80% of the total media spend was for paid search advertising and display advertising.

Two ad categories--paid search advertising (39.4%) and display advertising (38.9%)--accounted for approximately 80% of the total. The next largest category was video advertising (14.0%). By transaction method, performance-based advertising accounted for approximately 80% of the total.

2. Mobile advertising media expenditures exceeded one trillion yen for the first time in 2018.

Within the estimated 1,448.0 billion yen spent on Internet advertising media, mobile media expenditures accounted for 70.3% of the total, amounting to 1,018.1 billion yen.

3. In 2019, Internet advertising media expenditures overall are forecast to grow 15.9%, to 1,678.1 billion yen.

Underpinned by strong growth in mobile advertising, in 2019 Internet advertising media expenditures are forecast to increase 15.9% overall, to 1,678.1 billion yen. This comprises 1,249.3 billion yen in mobile advertising (up 22.7%) and 428.8 billion yen in desktop advertising (down 0.2%).

4. Video advertising media expenditures amounted to 202.7 billion yen, and are forecast to grow to 265.1 billion yen in 2019.

The rapidly expanding category of video advertising recorded media expenditures of 202.7 billion yen in 2018, and are forecast to increase 30.8%, to 265.1 billion yen in 2019. Of this forecast, mobile video ads are expected to grow 39.3%, and become an important growth driver for the entire category.

Sunday, 17 March 2019 00:00

Effective Media Strategies

Media Strategy Report 2019

WARC, the global authority on advertising and media effectiveness, has today released its 2019 Media Strategy Report, highlighting key trends and themes for an effective media strategy. The insights are drawn from the winners of the global WARC Media Awards, recognising communications planning which has made a positive impact on business results.

Following an analysis of the shortlisted and winning entries spanning 31 countries, the key insights are:

Imaginative phasing can reach elusive audiences

Effective Channel Integration winners in the 2018 WARC Media Awards show how to reach elusive audiences through imaginative phasing and leveraging the right combination of paid, owned and earned media. Grand Prix winner, Droga5's 'Dundee' campaign for Tourism Australia, shows how a massive media moment can be successfully leveraged and how a breakthrough creative concept, when combined with a full-funnel, orchestrated approach, can unlock true effectiveness.

TV is a flexible tool for successful partnerships

TV proved to be an agile channel in the Effective Use of Partnerships and Sponsorships category. In its quest to appeal to millennial women, the Grand Prix winner, 'Suzuki Ignis: An Ignis Adventure', by the7stars London, created an entire TV show from scratch when it couldn't find the right programme to partner.

Tech can create new channel opportunities

Tech is entering new territory, enabling brands to communicate their unique propositions. And context is playing a key role. Grand Prix winner The National Safety Council's 'Prescribed to Death' initiative by Energy BBDO used 3D printing to put the faces of real victims of opioid overdoses onto pills - but then used a memorial as the backdrop for a compelling art installation.

Data is key to encouraging behaviour change

Many Effective Use of Data winners showed the vital role for data in instigating positive behaviour change. Grand Prix-winning 'Lifebuoy: The Adaptive Data Lighthouse' by Mindshare Mumbai, used a data-driven algorithm to promote hand hygiene and increase sales in rural India.

Summing up, Lucy Aitken, Managing Editor, Case Studies at WARC, says: "Against a backdrop of greater automation in the media landscape, the rise in search budgets and the inexorable rise of Amazon as an ad platform, the 2018 WARC Media Awards winners were an impressive combination of data-driven insight, precision targeting and well thought-out strategy."

Sunday, 17 March 2019 00:00

A Note From Mark Zuckerberg

Mark Zuckerberg shared the following post with employees recently.

Hey everyone — I want to share some important updates as we organize our company to build out the privacy-focused social platform I discussed in my note last week. Embarking on this new vision represents the start of a new chapter for us.

As part of this, I’m sad to share the news that Chris Cox has decided to leave the company. Chris and I have worked closely together to build our products for more than a decade and I will always appreciate his deep empathy for the people using our services and the uplifting spirit he brings to everything he does. He has played so many central roles at Facebook — starting as an engineer on our original News Feed, building our first HR teams and helping to define our mission and values, leading our product and design teams, running the Facebook app, and most recently overseeing the strategy for our family of apps. Along the way, Chris has helped train many great leaders who are now in important roles across the company — including some who will now take on bigger roles in our new product efforts.

For a few years, Chris has been discussing with me his desire to do something else. He is one of the most talented people I know and he has the potential to do anything he wants. But after 2016, we both realized we had too much important work to do to improve our products for society, and he stayed to help us work through these issues and help us chart a course for our family of apps going forward. At this point, we have made real progress on many issues and we have a clear plan for our apps, centered around making private messaging, stories and groups the foundation of the experience, including enabling encryption and interoperability across our services. As we embark on this next major chapter, Chris has decided now is the time to step back from leading these teams. I will really miss Chris, but mostly I am deeply grateful for everything he has done to build this place and serve our community.

At the same time, as we embark on this new chapter, Chris Daniels has also decided to leave the company. Chris has also done great work in many roles, including running our business development team, leading Internet.org, which has helped more than 100 million people get access to the internet, and most recently at WhatsApp, where he has helped define the business model for our messaging services going forward. Chris is one of the clearest and most principled business thinkers I’ve met and the diversity of challenges he has helped us navigate is impressive. I’ve really enjoyed working with Chris and I’m sure he will do great work at whatever he chooses to take on next.

While it is sad to lose such great people, this also creates opportunities for more great leaders who are energized about the path ahead to take on new and bigger roles.

I’m excited that Will Cathcart will be the new head of WhatsApp. Will is one of the most talented leaders at our company — always focused on solving the most important problems for people and clear-eyed about the challenges and tradeoffs we face. Most recently he has done a great job running the Facebook app, where he has led our shift to focusing on meaningful social interactions and has significantly improved the performance and reliability of the app. In his career here, Will has helped lead our teams focused on security and integrity, and he believes deeply in providing end-to-end encryption to everyone in the world across our services.

I’m also excited that Fidji Simo will be the new head of the Facebook app. She is one of our most talented product and organizational leaders — passionate about building community and supporting creativity, and focused on building strong teams and developing future leaders. She has played key roles in building many aspects of the Facebook app, including leading our work on video and advertising. She believes deeply in helping people get more value out of the networks they’ve built. She has already led this team for much of last year while Will was out on parental leave, and she is the clear person to lead these efforts going forward.

Our family of apps strategy has been led jointly by Chris Cox and Javier Olivan. Chris managed the leaders of the apps directly and Javi has been responsible for all of the central product services that work across our apps, including safety and integrity, analytics, growth, and ads. Javi will now lead identifying where our apps should be more integrated. Javi is an incredibly thoughtful, strategic and analytical leader, and I’m confident this work will continue to go well. Since we have now decided on the basic direction of our family of apps for the next few years, I do not plan on immediately appointing anyone to fill Chris’s role in the near term. Instead, the leaders of Facebook (Fidji Simo), Instagram (Adam Mosseri), Messenger (Stan Chudnovsky), and WhatsApp (Will Cathcart) will report directly to me, and our Chief Marketing Officer (Antonio Lucio) will report directly to Sheryl.

This is an important change as we begin the next chapter of our work building the privacy-focused social foundation for the future. I’m deeply grateful for everything Chris Cox and Chris Daniels have done here, and I’m looking forward to working with Will and Fidji in their new roles as well as everyone who will be critical to achieving this vision. We have so much important work ahead and I’m excited to continue working to give people the power to build community and bring the world closer together.

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