DVR Usage, Trends Over Time and Implications for Advertisers Using Linear TV

Using Nielsen nPower® data from October 2006 (the first month with DVR viewing data), the authors found dramatic differences in the growth trends of non-live viewing amongst different categories of the linear TV landscape, with national broadcast prime showing the fastest increase (currently in the 30-40% range for persons 18-49). DRV Trends and LinearWhile experts have weighed in over the years on the effects of DVR-induced ad avoidance, analysis of the data offers reasons to remain bullish on the linear TV space, while also being cognizant of the need to include in many media plans some exposure in streaming platforms and other video mediums, both established and nascent.”

 

 

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DVR Usage, Trends Over Time and Implications for Advertisers Using Linear TV

4 Steps for How Direct-to-Consumer Challenger Brands Can Scale to Win

The rise of direct-to-consumer and challenger brands in the marketplace over the past several years has driven a dramatic paradigm shift. This new wave of products, services and subscription models has captured the mind and spirit of U.S. consumers, particularly in the coveted Millennial and Gen-Z audiences. It has also obliterated the traditional rules of marketing. To succeed moving forward, every marketer has to understand how the game has changed in order to win. Challenger brands that want to climb to the top, and stay there, have to be smart and strategic about how they engage consumers.

Challenger Brands

Why is this happening now?

Over the past several years, the U.S. cultural and political landscape has been marked by upheaval: Widening income gaps, the #MeToo movement, massive personal data breaches, shattered norms, unusual political allegiances, election meddling. and non-linear warfare, to name a few. Consumer behavior has always correlated closely with larger social trends, and this moment is no exception. The current social upheaval is reflected in the marketplace through the increasingly rapid introduction of startup disruptors, like Uber, AirBnB, Casper, and Peloton. It’s no coincidence that when the cultural zeitgeist is one of disruption and perpetual change, “disruption” is what every business strives for. Perpetual change is our new normal.

Driving these changes in the marketplace are technological advancements and tools that fuel agile, upstart challengers, which seek to steal market share from legacy leaders. Interestingly, many challenger brands have direct-to-consumer (DTC) business models. They are also borrowing tactics from the Direct Response advertising and marketing playbook. Testing creative messaging, offering configurations and call-to-actions along with triggering an impulse buy, and measuring everything as precisely as possible are all hallmarks of Direct Response—newly re-christened as Performance Marketing.

From a digital platform perspective, the tools and services to support challenger brands with DTC models are all there. However, scaling up past digital is the true test of whether these brands will have a significant and lasting place in the market. As the costs of advertising on Facebook and Instagram increase and the competitive bidding in AdWords becomes untenable, the target cost-per-actions needed for businesses to scale (and perhaps close another round of funding) begin to drift out of reach.

While there are other channels—such as social media influencers and out-of-home—they can make it tricky to show accurate ROI. The fact is that if a challenger brand wants to scale effectively beyond digital, TV is the answer. Why? Because the array of strategic options with linear, connected and addressable TV is continually being refined. Moreover, the attribution and analytics to track TV performance to provable ROI is more advanced than ever.

How to scale and win

The key to winning—meaning to scale beyond digital—is simple, but it requires the right ingredients and the right partner. Here are four steps that direct-to-consumer challenger brands can take to effectively scale to win.

1. First, brands need to craft compelling creative messaging that will elicit the desired response from their audience. Generally, this entails balancing an emotional component, to hook them, and a rational component, to drive responsiveness. A/B testing tools that offer configurations and call-to-actions can help brands uncover the best performer within their creative options.

2. Secondly, a brand’s audience segmentation and media strategy must be spot on. Brands can learn quite a bit about their audience through digital channels and there are formulas to apply those learnings and the profiles in a CRM to TV. Additionally, TV can provide more “spillover” than digital, so there’s an opportunity to test out an audience’s sweet spot.

3. Third, media buying must be optimized weekly. With accurate attribution, analytics and reporting, media buyers have the information at their fingertips to heavy up on the best performing stations and day parts while balancing clearance to meet business objectives.

4. Lastly, and most importantly, brands have to measure everything. TV post-logs, BVS detections, Google Analytics, Omniture, Adjust, Appsflyer, Liveramp and other data sources should be fed into custom attribution engines with fully refined algorithms to deliver results, insights and directional data to make better decisions, which drive even better results.

All of these steps must be iterative in nature. Winning in today’s landscape requires an agile model that seeks to continuously improve results in order to achieve sustainable scalability. Just like any advertising investment, there is risk involved. There is risk involved in starting a business, raising money, and taking on the role of marketer. Now, brands have to decide if they want to scale up and capture market share or be content with where they are now. Direct-to-consumer and challenger brands have endless opportunities ahead of them, if they know how to take advantage of them.

Quantum Considerations and Neuroscience for Brand Response Marketing

Is thinking of Marketing as a quantum mechanical process useful? It is when you are seeking to attribute consumer response to media impressions, and when you’re crafting and testing effective messaging. This white paper explores a few selected topics within this theme under active research, development, and use in marketing and advertising campaigns.

Exactly why someone buys or not, and why they buy one brand over another, will always have some aspect of the mysterious unknown, and therefore marketing will always have a magical component requiring art and inspired creative initiative. Even when directly asked, most people are unaware themselves of all the influences motivating them to buy and value brands. However, there are aspects of marketing that are scientifically measurable and predictable.

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Dr. Stephen Kelley – Quantum Considerations and Neuroscience for Brand Response Marketing

Building housewares brands with brand response TV

Growing Unicorns with DRTV

It is time for marketers to take advantage of the DRTV expansion to solve some of their biggest advertising pain points.

Karla Crawford Kerr on September 26, 2019 at 9:51 am

Housewares and brand response television have a long and robust shared history. Over 30 years ago, the Federal Communications Commission’s (FCC) deregulated television air time allowing different time formats of commercial air time to be purchased. This paved the way for the live shopping channels as we know them today, showcasing many housewares products. It also opened up the airwaves to longer formats like 30-minute infomercials. Braun and Black+Decker were among the first major housewares retail brands to embrace the format, an early example of direct response television (DRTV), in which consumers are encouraged to buy directly from advertisements.

Throughout the late 1980s and early 1990s, longer format advertising represented about 75% of the DRTV landscape and today the industry is worth over $200 billionPopular housewares DRTV advertisers achieved an almost cult-like status by using a variety of lengths including from 30 seconds to a half hour and live shopping to promote products like the George Foreman Grill, OxiClean, ShamWow and of course, the Snuggie. However, it is brands like Conair, Cuisinart, Dollar Shave, KitchenAid, Pfizer, Shark, Wahl Clipper Corporation and WORX that have paved the way for advertising that utilizes both branding and response mechanisms or brand response advertising.

As television and media consumption habits have evolved, along with advertising and marketing technology, so has DRTV, paving the way for the next generation of brand response TV. The role of DRTV is expanding in the brand marketing world and the next generation of DRTV has opened up powerful opportunities for housewares brands seeking accountability and faster campaign ROI. As the role of DRTV expands in the brand marketing world, it is time for marketers to take advantage of that expansion to solve some of their biggest advertising pain points.

In today’s competitive media landscape, brand advertisers struggle more than ever before to earn market share using traditional approaches due to factors like cost and fragmentation. Targeting consumers and B2B customers is getting extremely difficult. Put simply, it’s hard to stand out in an environment where people are bombarded by brand messages all day, on all sides. Social media may be widely used, but it also gives brands a split second to make an impression. What marketers need is a canvas that tells a story in an attention-getting medium, which is why they are turning to brand response TV (BRTV) and connected TV with the traditional bag of tricks like retargeting.

Brand response advertising increases brand awareness, improves brand perception and drives engagement. It is highly accountable, measurable, and delivers real ROI. It features customized, relevant content and works in conjunction with other types of media and channels. The brand response paradigm leverages a strong data component and can empower brands to make better decisions around media buys, messaging, and their overall campaigns. Marketers can analyze real-time performance statistics and test strategies in an ongoing way. BRTV is also more affordable and efficient than general advertising.

Despite these major benefits, many brand marketers are reluctant to invest in brand response TV due to concerns that people aren’t watching. Certainly video content is evolving, but that doesn’t mean TV is dead.

In an October 2018 study, the Consumer Technology Association surveyed 2,000 US adults about their content consumption habits. The survey yielded four main segments: Traditionalists, Value-Conscious Streamers, Device-Diverse Viewers and Experience Seekers. Traditionalists (29%) haven’t tried new technology and are less likely to stream or binge-watch; Value-Conscious Streams (41%) are more likely to use streaming services than cable and prioritize saving money; Device-Diverse Viewers (13%) watch a lot of video content from many sources on many devices; Experience Seekers (17%) prioritize an optimal viewing experience, and are willing to spend on technology and content to get that experience.

Across all these personas, one thing is clear – TV remains the top device for viewing content and cable/satellite remains the top source for content. TV is highly relevant and a long way from becoming obsolete. Housewares brands that invest in brand response TV can get serious bang for their buck.

Housewares brands are particularly suited to brand response advertising for a number of reasons. One is the power of demonstration. Brands can show their products in action and demonstrate how they will improve people’s lives in a way that is impactful and enticing. Consider Dyson, Keurig, Leesa, Rust-Oleum and T-Mobile. Viewers can immediately see how these products address a clear pain point and offer better ease and convenience than whatever they’re currently doing.

Housewares tend to be fairly intimate since they are products people use in their homes, so creating an emotional connection with viewers is key. This is why so many of the stars of DRTV are “everyman” or “everywoman” types who viewers feel comfortable with, recognize, and trust.  Housewares brands using brand response have a natural, high-focus on their relationship with consumers. The shift from brick and mortar to e-commerce has been beneficial to brands as they engage directly with the consumer via Amazon FBM (fulfillment by merchant), as well as interactions with consumers that share their housewares experience online.

Further, using brand response for housewares creates more room to deploy creative strategies, as suggested by Dash, Sobro and Wahl Clipper Corporation executives at the aforementioned building housewares brands seminar. For example, Catherine-Gail Reinhard, vice president, product strategy & marketing for Dash and Sobro shared that she often creates recipes and/or develops cookbooks that complement a food-related houseware. At the same seminar, Steven Yde, Vice President Marketing NAC division, said that offering guides from in-house barbers helps build value and ensures greater product satisfaction.

Direct response advertising has come a long way from the days of Ron Popeil’s first TV commercials for Ronco’s housewares gadgets like the Ronco Spray Gun, the Chop-O-Matic and the Veg-O-Matic, but clearly many aspects have remained the same.  In 2019 and beyond, brand response TV is a highly effective and cost-efficient approach for any housewares brand that wants to strategically grow and have a meaningful impact.

Private Equity firms and Branding: 7 reasons why it makes for better ROI

Anant Deboor

By Anant Deboor, Regional Managing Director, Asia Pacific, Hawthorne

Original Publication: Medium

Date of Publication: February 7, 2019

‘We are a private equity firm — I am not sure why we need to invest in branding and marketing. Our business is face-to-face, we know our clients.’Anant Deboor

Something that we often hear of as brand and marketing consultants. On the other hand, research from a 2014 survey by financial services firm, BackBay Communications, among 290 PE partners, agents, lawyers and i-bankers, 98% said it was important. Where’s the truth in this post-truth world? Or perhaps more accurately, which is the more justifiable opinion?

Private equity: a young, maturing industry with an ancient history

PE has always been around, it just hasn’t been called that until modern times.

If you went back to the 15th Century, it would have been a husband-wife venture capitalist team in Spain by the names of King Ferdinand and Queen Isabella who provided seed funding for a chap called Christopher Columbus hoping to find a new route to India. Señor Columbus first made presentations to the King of Portugal, who turned him down after consulting with his advisory team. Over the years, the King and Queen put up more expansion capital as they started seeing some returns — and then convinced investors from other parts of Europe to jump into Project America.

Fast forward to the 1960s-80s, when we witnessed explosive growth among PE firms. From Silicon Valley start-ups funded by venture capitalists through to the infamous leveraged buyout of RJR Nabisco by Henry Kravis and Jerome Kohlberg, Jr — PE firms started acquiring their cavalier (and sometimes dark) reputation, immortalised in pop culture with the book and film “Barbarian at the Gates”.

From small to big: contrasting worlds, bigger challenges

PE firms are generally slotted in somewhere along a scale of size: from small to very, very large. At the smaller end of the spectrum, you typically have the largely self-funded VC firms. The culture tends to be more chaotic — and often driven by a belief in an idea. As most of the firms here are self-funded, the deals they look for are based often based around personal beliefs, capabilities and vision. To the extreme right however, you have the behemoths such as KKR and Blackstone, that look and feel premium corporate. It is the world of big business, huge numbers, management power and aggressive ambitions.

Beyond deal-making: the emergence importance of brand and reputation

While the ability to spot winners, negotiation skills, financial nous and an innate aggression have always been central to the success of PE firms, in today’s market, they can no longer rely on that deal-making prowess alone. In a post-2008 tighter regulatory and more suspicious climate, with the general drying up of easy capital, an increasing number of PE firms — particularly the small and mid-market ones — need to make every deal count. In the cut-throat world of PE, the deal-making — and oftentimes the unsavoury fallout — ends up damaging reputations for the long-term. Just Google the PE fight over the super luxury hospitality brand Aman Resorts, and the impact it had on the Aman brand.

Here are seven lessons in the long-term importance of the brand that PE firms are realising today, lessons that firms such as Deloitte, McKinsey and PWC, and law firms such as Allen & Overy, Linklaters, Clifford Chance and others have realised over the last decades. An importance that is leading to greater ROI on every deal that is at the heart of the PE business.

  1. Cascading trust: A stronger brand at the heart of the PE business means an ecosystem of greater trust and confidence — and the cascading benefits. Brands are also hugely valuable during times of underperformance, and when working with regulatory bodies. While basic honesty and integrity in deal-making are essential in the VC space, this becomes mission critical as you move to the right of the spectrum above.
  2. Stronger deal results: For the small and mid-market firms, their PE brand is critical in an external downstream context. This could mean more proprietary deal flow, with fewer auctions. It will mean more calls returned, easier negotiation on term sheets and big insurance against ending up competing on price.
  3. Efficiencies in attracting the right opportunities: Creating a reputation for a sector expertise, or sustainability, automatically separates you from other firms by attracting the right kind of investment opportunities. For example, Impact Investing has become such an important arena that The Economist estimates it will take an additional $2.5trillion of private investment per year to really tackle the issues of climate change.
  4. Insurance against financial crises: For the mega firms such as KKR and Blackstone, corporate reputation matters more than ever before. The WPP BrandZ Portfolio of Strong Brands outperformed the S&P 500 by a factor of 2 between Apr 2006 and April 2013. Companies that invested in their brand showed smaller drops during the financial crisis, and rebounded faster and higher after.
  5. Winning the war for expertise: Most importantly, a strong brand helps in the talent marketplace. A survey by Deloitte once estimated that a 1% drop in talent attrition led to an annual savings of over US$400mn. Toward the right of the spectrum, companies like KKR and Blackstone face fierce competition to hold on to their star fund managers and to continuously attract the best talent.
  6. The power of the halo effect: The Aman Resorts case is a classic lesson in how not to handle PE deal-making. The impact on the Aman brand is still reverberating, five years on. The stronger your PE brand and reputation, the stronger the halo — both on sources of capital as well on your investment properties. A strong PE brand has a direct impact on the valuation of the very companies it has stakes in — resulting in greater returns.
  7. Access, access access: A strong PE brand with a sharply defined purpose will open gateways to far more deals of the right kind rather than the ‘spray-n-pray’ approach that many adopt through endless networking events and seminars. Access to sectors, geographies, people and deals happen because your reputation precedes you.PE firms need to translate intent into meaningful action to define and develop their brands and marketing propositions. Being able to articulate a central idea and brand vision and making that work nicely for the business is quite simply a measure of sophistication of the firm — and will stand it in good stead.

Anant Deboor is a specialist in brand architecture/consulting and the Regional MD (APAC) of Hawthorne, a US-based, ROI-led performance marketing agency.

Growing ‘unicorns’ with brand response TV advertising

Growing Unicorns with DRTV

By Karla Crawford Kerr, VP of Marketing, Hawthorne

Original Publication: The Drum

Date of Publication: February 4, 2019

Advertising during the Super Bowl is designed to make a statement. Brands use those premium slots as an opportunity to make people laugh or cry, to take a political stance, but most of all, to make a lasting impression. At $5 million for a 30-second spot, Super Bowl ads aren’t cheap, and just as notable as the content can be which brands decide to shell out for ads at astronomical prices.

Growing Unicorns with DRTV

Click here for the full story over at The Drum