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business mobile

Digital ads: Surging sales, video, mobile and the social media effect

H&M, April 2016
H&M, April 2016

US digital ad revenues reached an all-time high of $59.6bn last year, according to a new report. That’s a 20% surge over the previous record-breaking year. And the pace is quickening: Q4 saw a 23% year-on-year rise to $17.4bn and an 18% surge over the previous quarter.

The full-year IAB Internet Advertising Revenue Report, produced in association with PwC US, also offered up some even more interesting stats when it got down to the detail of just what that advertising was all about.

  • Mobile advertising skyrocketed (66%) to $20.7bn last year, reflecting the migration of consumers to mobile devices.
  • Non-mobile digital video, a component of display-related advertising, rose 30% to $4.2bn as advertisers targeted increasingly video-focused Millennials and Generation Z consumers.
  • Social media advertising rose 55% to $10.9bn as advertisers convinced themselves that social networks were the place to be.
  • Non-mobile search revenues rose a slower 8% to $20.5bn.
  • Retail advertisers continue to represent the largest category of internet ad spending, responsible for 22%.

“Internet advertising was a disruptive innovation when the industry was formed,” said PwC’s David Silverman. “Twenty years later we still see double-digit growth rates. Three key disruptive trends, mobile, social, and programmatic, continue to fuel this exceptional rate of growth.”

“There’s no question that interactive screens are attracting consumers and the advertisers that want to reach them where they live, increasingly on mobile devices,” added IAB’s Sherrill Mane.

This post first appeared on Trendwalk.net, a style-meets-business blog by journalist, trends specialist and business analyst, Sandra Halliday

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digital snippets technology Uncategorized

Digital snippets 15/04: Bottega Veneta, Bergdorf Goodman, Burberry, Franceline Prat

Bottega Veneta's Viaggio Notturno

Some more great stories from around the web surrounding all things fashion and digital this week:

  • Bottega Veneta unveils first fashion film, “Viaggio Notturno”. Based on the subject of travel, it was made in collaboration with photographer and director Christian Weber [Bottega Veneta, NOWNESS]
  • Bergdorf Goodman places location-based banner ad in mobile application game Words With Friends to drive consumers in store [Luxury Daily]
  • Burberry is kickstarting its digital retail commitment by outfitting its China stores with touchscreens the size of full-length mirrors and iPads to facilitate ordering; other markets will follow [WSJ]
  • And watch highlights from Burberry’s Beijing hologram show [YouTube]
  • Why we still love magazines, including a short film of infamous French Vogue editor Franceline Prat telling the story of her first shoot with Helmut Newton [The Business of Fashion]
  • Online advertising revenue grew 15% in 2010 to $26bn [IAB]
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Some thoughts on Web 3.0

I recently attended the IAB’s Annual Leadership Meeting in La Quinta, California, where the key focus of conversation was on the increasingly personal web – also referred to as “Web 3.0” or “Ecosystem 3.0”.

It’s a controversial subject given the privacy concerns that come attached, but the industry is trying to convert such connotations of data to reflect instead feelings of opportunity and ultimately value for both the consumer and the brand involved.

Here are some choice thoughts from the event:

  • Web 3.0 is being facilitated by consumers becoming increasingly used to sharing their information, according to Doc Searls, senior editor of Linux Journal, a fellow with the Berkman Center for Internet and Society at Harvard University, and co-author of The Cluetrain Manifesto.
  • Handling privacy worries comes down to showing consumers they can be in charge of their own data, he said, introducing his theory of vendor relationship management (VRM).
  • It’s about consumers getting to a point where they’re more willing to enter into something because they know and understand what’s happening to their data when they do.
  • Omar Tawakol, CEO of online data exchange company Bluekai said we need to simplify things so people can visually understand what happens to their data.
  • According to Rik van der Kooi, corporate vice president of Microsoft’s Advertiser and Publisher Solutions (APS) group, it should no longer be about people versus data, but instead people and their data. “If we continue to see data as privacy rather than property, we will continue to postpone the opportunity that presents itself here,” he explained.
  • Tawakol said transparency is what will facilitate a move away from the conversation of privacy as one of fear, towards the notion of sharing as beneficial to the user. It’s in having a complete picture of consumers that we will be able to achieve more trust and stronger bonds, resulting in better value for everyone involved, he said.

It was interesting to also read The  Business of Fashion’s post on Web 3.0 this week.

This next phase of the internet, it says, will create an exciting opportunity for fashion retailers.

“In a world where people constantly share personal information, it’s becoming increasingly possible for retailers to analyse this information to better understand the specific context of the individual — her interests, personal style and other parameters — and deliver content and products that are personalised to her needs and desires. Simply put, “Web 3.0” will enable personalised experiences built on the data created by Web 2.0.”

An interview with Silicon Valley strategy consultant, author and entrepreneur Sramana Mitra follows. In it, she says the fashion industry could become more financially successful by utilising personal data: analysing it and designing and merchandising accordingly.

Read the rest, here: The Long View | Sramana Mitra on Web 3.0 and the Science of Personalised Shopping

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Gaming as fashion’s jackpot

H&M on Goldrun

There was a nice piece from The New York Times last week about how gaming can be applied to the fashion industry. It suggests e-commerce sites take inspiration from the likes of Angry Birds and Farmville, which welcome a total of three billion hours a week in play time.

It highlights initiatives from brands including Dunhill, Marc Jacobs and Jimmy Choo, and suggests point-scoring, scavenger-hunting, clock-countdowning ideas to engage with consumers and ultimately encourage loyalty.

This notion of brand gaming is something I’ve been reporting on for quite a while, not least because it’s been one of the most mentioned subjects alongside “mobile” and “location” at conferences around the world over the past year.

So here are some additional thoughts:

  • 200m of Facebook’s 500m+ users now log on to play games
  • Despite what might initially spring to mind, it’s not just for teenage boys – 71% of females aged 20-49 now play games, according to IGN Entertainment
  • The nature of gaming has changed. Where it was once a solitary bedroom activity for children, it’s now a shared experience – either with others online, or with the family in the living room space
  • Technology is allowing gaming to be more immersive – traditional controls are on the out, while social media and television are integrating too, said Jack Wallington, head of industry programmes at the IAB
  • Consumers are attracted by generating stats, gaining points and flattering their own egos, according to Joel Lunenfeld, CEO of ad agency Moxie Interactive – accordingly, by nature, gaming encourages greater loyalty
  • Foursquare co-founder Dennis Crowley said the theory behind his location-based social service is framed around incentivising via a game overlay. By “checking in” to different venues, users can gain various badges, which Crowley referred to as “digital candy”
  • Goldrun is another app worth looking at in this space. H&M ran a campaign designed to drive traffic and increase sales last November, where users in NY could hunt for virtual items, take a picture of them and in so doing, receive a 10% discount off their next purchase
  • Nike Grid is another example of brand gaming – athletes won points for running between phoneboxes and calling in to prove their achievements. Over 15 days last October, 12,500 miles were run across London, 62,000 phonecalls were made to the freephone hotline and 4,705 people liked the Grid on Facebook
  • Even Burberry’s Art of the Trench site could be considered to have somewhat of a gaming underlay. You go out, take a picture of yourself in your trench coat and wait to see if it’s deemed good enough to be posted online. If it’s not, what’s the betting numerous consumers go and try again – competition at its finest.