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28 Jun 201916 Jul 2019

Sponsorship Advertising | Sponsored content and its benefits

Sponsorship advertising also called native or sponsored ads, is the system that brands use in order to pay for news services. Some people believe that it is two different things, while the former is merely informative. On the other hand, the second has more sales intentions.

Mainly, the sponsored content is to incorporate promotional articles by distributing them through news or editorials. In this way, the sponsored content integrates organically to the site in question. The important thing about this is that people don’t notice that it is an undercover ad.

There is a lot of criticism of this practice and severe questions about the ethics behind an announcement that seems not to be and that people do not recognize as such. What is undeniable is that the sponsored content definitely works. And this has been proven by sites such as Buzzfeed or even the New York Times.

Sponsorship advertising is the king

We know what they say in digital marketing: Content is the king. In fact, the whole premise of Inbound Marketing is based on this principle. In this case, the sponsored content is the response of brands to this premise.

As we have seen, millennials don’t like to be sold directly, they repel sponsored advertisements, so the adoption of sponsored content is a logical case. When it comes to digital marketing, this is a good strategy due to the large millennial population in the digital and purchasing platforms.

As we know, the original content generates engagement. So the sponsored content does it. But in addition to this, it generates awareness of the brand, without directly saying what you are selling.

Advantages of the Sponsored Content

Great opportunity for brands to approach their audience directly without large intermediaries that sometimes do not help them achieve their result.
They are the best way to have content generated by different people that really add value.
An excellent way to generate extra income for bloggers or influencers.
They can be an intelligent and efficient solution for brands if they know how to select channels.
For a brand to make a campaign of sponsored posts is how to have different ads with different tones. Unlike campaigns that have an expiration date, sponsored posts are born to stay until the end.

Netflix makes content sponsored in the New York Times

A very clear example of this type of content is what the New York Times made to promote season two of the Netflix series, Orange Is the New Black. The newspaper launched an extensive report on the prisons for women in the United States and how inmates live in this situation. What should have been a journalistic piece by itself, was really content paid by Netflix, to make noise around the program. It was interesting the fact that the report didn’t mention the series at any time or directed the audience’s attention to it. In contrast, they only took the theme of the series as a pretext and developed something of journalistic value. But this is not always the case.

Perhaps, the main advantage of adopting sponsored content -besides the clear economic benefit- is the fact that, if treated correctly, it will be seen as something that belongs on the site, hence it is called native. Consumers don’t usually notice the difference between a sponsored ad and an editorial piece, because -when done correctly-, it’s almost nil.

When talking about the launch of a new product in sites dedicated to technology or video games, for example, it is impossible not to speak directly about a brand or highlight positive qualities. This makes it necessary an explicit distinction that the content was ordered by the company behind the product, in order to get more criteria on the part of the reader. However, these warnings are ignored, due to the interesting nature of the article or, simply, for issues of attention and retention of the audience.

Also, the sponsored ad appears on social platforms within the users’ own feed, since it belongs to the regular content of a site. In this way, it doesn’t need to be marked (as in Facebook guidelines as sponsored content), but it is integrated in a natural and organic way to the rest of the content. That’s why it makes even more difficult to identify them and increases the possibility of awareness and, depending on how it is played, the return on investment.

Performance Marketing – What is it and how to use it?

Performance marketing is one of the most important tools for both brands and marketers. This is based on the basic principle of paying for results, either by exposure and visibility, by interaction or by a specific action.

Performance marketing offers clarity and transparency in services. Currently, these results can be easily measured and studied. Performance marketing becomes more relevant since it is an important part of mobile platforms.

Performance Marketing is a marketing model in which the client only remunerates the company according to the results previously set.

The basic elements of Performance Marketing

There are three basic ways to execute performance marketing:

CPM: Cost-Per-Mille. This system, which means cost per thousand or per each thousand, focuses on the exposure and visibility of the brand or product. Some people argue that it is not a form of performance marketing, although the times the ad has been seen is measurable, the benefit to the advertiser beyond being seen, is not quantifiable.
CPC: Cost-Per-Click. This model (that means cost per click) is one of the most common. It is based on the number of times an ad is clicked by a user, regardless of what they do next or whether or not they complete a transaction on the site.
CPL: Cost-Per-Lead. Cost per lead. This model is paid every time the user enters the required site through the advertisement and fill out an enrollment form or the necessary steps to be part of the advertiser’s database, to be targeted by different engagement vehicles.

There is a fourth model, much more specialized, known as CPA. In the Cost-Per-Action or Cost-Per-Acquisition, the advertiser only pays if a transaction is completed by means of the advertisement.

There is also the so-called affiliate marketing, which is often confused directly with performance marketing. It is a system of scheduled advertisements in which the advertiser receives a commission for each sale generated from a guideline.

It can be related more directly to the product placement or scheduled content, or directly to influencers. Although it is still part of performance marketing, because it can be measured, analyzed and optimized, it is used to obtain better results and a higher return on investment for the advertiser. We could see it as part of an umbrella strategy of performance marketing.

So, performance marketing prioritizes getting better direct business metrics (leads, new customers or return on investment). In marketing results, good management of budgets is a key element to optimize the investment and ensure better conversions.

The brands that manage the user experience using Marketing Automation tools, achieve 451% more qualified customers.

Benefits of Performance Marketing

According to a study made by Cake Marketing, Performance Marketing has many benefits and reasons for using it today, as follows:

The conversion is instantaneous because the Marketing actions have direct efficiency.
Performance Marketing has been growing as a segment of digital advertising: Let’s stay ahead of the curve!
For every dollar invested, an ROI of eleven is obtained, according to studies.
New opportunities to earn income.
With sustained use of Performance Marketing, it will begin to add Business Intelligence technologies that will let you know better how to expand the ROI.
Many companies recommend it.
The advertiser can know in advance the unit cost of each action made with Performance Marketing that is put into play: subscriptions, likes, visits, registrations, etc.
You can use many online media such as email marketing, ads on social networks, among others.
You can have very precise control of the results.

Decalogue of Performance Marketing

Last year, the Conversion agency published this decalogue, showing the basic factors to start an adequate performance marketing strategy. Here are some of them:

Integrate the Performance in the general strategy of the company: The marketing of results should be integrated into the rest of the company’s marketing strategies. None of them can separately respond to the needs of your company.
Identify the KPI’S: It is a basic activity: Know the indicators that will help measure the actions you execute. Only then, you can optimize your campaigns.
Discover the path to conversion: Conversion is the ultimate goal of any performance marketing strategy. Identifying how to achieve this, will improve the effectiveness of your performance marketing actions.
Regroup and measure: Nowadays, it is already possible to generate millions of data and exploit them consciously. The challenge is to process and analyze these huge amounts of available data, both structured and unstructured, to give them meaning, to transform them into useful insights.
Technology & CRM: If you cross all your online marketing campaigns with your own CRM you will get a bigger control of the operation of advertising actions. And you can make the planning of subsequent campaigns more focused on users. Personalized campaigns through the integration of results with the CRM, offers results totally aimed at performance, improving the conversion ratios, regardless of the target (records, sales, reservations) because each creativity focuses on the user’s historical behavior.
Attribution models: Attribution models are a set of rules that assign, as representative as possible, the registered value of sales to each of the points of contact with which the user interacts on the way to conversion.
Omni-channel strategy: The appearance of more and more channels both in the online and offline environment through which the consumer can interact with your brand, requires creating a strategy focused on omnichannel. A user has the ability to interact with your brand in different contexts, moments and devices. And it is your job to know that it is the same person.
Constant innovation: It is important to be in constant innovation and to make adequate data management. To do this, you can already have specialized supports and tools that allow the user to be impacted through personalized messages at the time it is appropriate.
Creativity and contents: Content is the starting point. The creative content strategy must be well managed and balanced. In any case, it is important to understand that the life cycle of the content has changed: Before, the content died when it was published. Nowadays, the cycle begins once it is published.
Analysis of competition: Much of the success of a campaign based on performance marketing, comes from the continuous analysis of the competition. Knowing well the “what or how or where” your competitors are acting, is very important when it comes to making decisions.

Get to know more about Performance Marketing

https://www.youtube.com/watch?v=2ax6phmjSqo

If you are interested in using this and other strategies to improve your results in digital marketing, keep learning with us.

We are the best Performance Agency to grow your brand. Let’s talk about your next digital strategy!

26 Mar 201912 Aug 2019

Programmatic ad buying | 5 reasons to choose it

In our digital world today, since companies discovered that they could advertise on social networks, they opted for the most efficient way to do it, and then the programmatic purchase was born.

The processes of buying media manually, have evolved to give way to the Programmatic Purchase, well known as well as programmatic ad buying. This allows the design of advertising campaigns much more precise, and with scope projections.

The programmatic ad buying can be defined as the massive and automated purchase of advertising spaces in digital media.

Actors Involved in Programmatic Ad Buying

To develop the Programmatic ad buying, we need to establish an automated relationship between all the agents that interact with it.

Advertisers: The brands that want to make public a product or service through different media.
Editors: They are responsible for the media they place in relation to advertisers brands with users.
Users: They are potential customers. They are the fundamental element that interests brands so much, to impact their messages.

How does Programmatic ad buying work?

For programmatic ad buying, assigning a value to the printing in real time, we would be talking about RTB (real time bidding).

The RTB is known as an online advertising inventory purchase model, based on bids for each unique impression.

Also, different agents are involved for each transaction (agencies, advertisers, ad exchanges, DSP, trading desks, advertising networks, media, etc.).

It should be noted that RTB is carried out in very high volumes of purchase and sale, so we talk about mass purchases.

In order to offer adequate publicity to the interests of the target, there are used things such as location data, sociodemographic characteristics, purchase history, etc. On the other hand, knowing the previous data, increases the efficiency of advertising, and also the conversion probabilities.

Then, the purchase and sale of advertising is carried out through technological platforms.

These platforms have been designed to carry out transactions mechanically. We emphasize that without the need for human intervention, only through parameters, we can make the Programmatic ad buying.

5 Reasons to Choose Programmatic ad buying

If you are still not sure about using the Programmatic Purchase, take a look at the reasons why you should start:

Each auction makes it easy for an advertiser to show a specific ad to a single consumer in a defined context.
You can plan a campaign in real time, enabling the optimization of the campaign while it remains active.
You can bid on digital media and buy them without previously negotiating a price, contracting a specific budget or a minimum number of impressions.
Costs tend to be lower than in traditional advertising purchases, increasing budget performance.
Each impression can be measured in real time, which makes it easy to define a clear objective and quantify it.

An important part that facilitates the Programmatic ad buying, is Big Data. This refers to the collection of millions of data done through the platforms.

This is why, it becomes necessary an intelligent reach of data flow. Besides, the data collected by the platforms, are grouped and related to create a supply and demand system.

Then, it is (in this new digital ecosystem) where data becomes our best ally. In addition, it allows us to reach many more digital media than with a manual purchase.

We must point out that the different processes of the traditional digital advertising buying and selling model, will continue to work.

However, the automation based on thousands of data on which the programmatic purchase is based, allows you to create smarter media buying strategies by bidding in real time.

Therefore, it is predicted that more and more actors will introduce it into their businesses, as the favorite way to maximize results and with more efficient campaigns.

Programmatic TV

During 2019, advertisers in the United States will invest 3.8 billion dollars in programmatic advertising on television, according to an eMarketer estimate, which will mean an increase of 236% compared to 2018. So, it is a new way that companies are betting on.

This increase will be benefited by the implementation of better tools to segment and deliver the ads. In addition, it allows to measure its effectiveness on all audiovisual platforms: Smart TV, mobile devices and computers.

In Spain, Smart TVs have become a reference for content consumption. In fact, a 57% of Internet users have a Smart TV and 62% have a subscription, both streaming video platforms (such as Netflix, HBO or Amazon Prime Video), and paid TV, according to The Cocktail Analysis.

There are almost 6.9 million people subscribed to cable TV, according to the National Commission for Markets and Competition (CNMC).

A SpotX report estimates that “connected television” will generate advertising revenues in Spain of 105 million euros in 2020.

As in previous posts we’ve talked about the importance of training and knowledge, Google is a platform that is not far behind.

This is why we leave you a short summary to understand more the Programmatic ad buying.

Is Programmatic something that you wanna read about? This is the purchase and sale of advertising through data-based technology, cookies and Machine Learning algorithms. Do you want to know more or read more about this?

As a Performance Agency, we work to take your brand to the next level. Contact us!

26 Mar 201917 Jul 2019

How to improve your Omnichannel Strategy

Talking about a good strategy focused on performance has to be integral.

But, what does this mean?

It means that all the strategies that involve the business target, can work as a team. Starting from this vision, not only digital marketing specialists and their variants, but also those who manage offline media, must join forces to draw effective strategies under the term Omnichannel Marketing (or multichannel).

Much has been said about the Omnichannel Marketing worldwide, but there is no doubt that Latin America is beginning to realize this. Today, large companies are becoming aware of the advantages of having an Omnichannel Marketing Strategy.

To create a good Omnichannel Marketing strategy, you must know how your product or service is performing in different channels. And nevertheless, to know how the customer journey is thorough.

What is the Omnichannel basis?

It consists of achieving to homogenize a message of your brand to all media where your consumer has a presence, in order to guide it to an action by the consumer. In easy words, with a good strategy of Omnichannel Marketing, you will give your consumer what he wants, when he wants and how he wants it.

With Omnichannel Marketing strategies, the journey of all customers starts with a channel. In this stage, the consumer is interacting but is not close to the purchase process. After this, he decides to review more information on another channel, and when he finds all homogenized, he decides to take action.

At this point, the consumer is already more receptive and ready to buy. He goes to another channel to make the purchase, and let’s say that this consumer decides to talk to the customer because he began to doubt making the purchase online. Then, a persuasion channel is opened.

Once you’re there, you already have the consumer in the final stage. All you need is a “push”. Then, the consumer could continue the operation talking to the customer and collect the product in a physical store or make their payment online.

In the opposite way to what really happens in a single-channel strategy or even a multi-channel (different channels that operate autonomously) in Omnichannel Marketing strategies, the consumer no longer perceives which one is the sales channel, but he rather focuses on the experience consisting of having the brand blurring the channels thanks to the fact that the information flows naturally in the channel and precise moment.

Do you know the benefits of managing an Omnichannel Strategy?

To improve the perception that the consumer has of your brand and can generate loyalty:
Current consumers seek to have a unique, personalized and consistent experience regarding the brand’s message, no matter which channel they’re using.
It makes your database more robust and in a more efficient way:

The main objective of an Omnichannel Marketing strategy is being able to detect or track your customers by implementing multiple channels, not only to know where they come but its preferences, so the client basically feels that you know him maybe better than he knows himself.

Help for increasing sales:
This point goes hand in hand with the previous one: The more you know your consumer, the better you will be when detecting sales opportunities. And not only recurring or unitary sales, but also complementary sales.

While these strategies of Omnichannel Marketing can be used in different industrial areas, there is no doubt that they can be seen implemented more often in the retail industry, which migration to e-commerce, projects a 20% growth.

At LDM, we had the opportunity to apply an Omnichannel Marketing and machine learning strategy for this industry. This allowed us to cross data from online campaigns with purchases made in any of its channels. By doing this, was possible to identify the online and offline behavior to know what were the opportunity areas for our client.

In the same way, efforts were made with another retail brand with a great presence in its territory, (in this case, in Mexico) last year during the Football World Cup. What was sought in this particular case was to enrich the database and boost the purchase at a point of sale (POS).

Through a strategy of omnichannel marketing, it was achieved (through digital interaction) the enriching of the database and at the same time, began a massive mailing campaign that detonated a benefit, allowing the consumer could see it reflected only in offline shopping.

In both cases, sales were increased and the relationship between the brand and the final consumer was strengthened, having as common denominator an effective omnichannel strategy.

An Omni-Channel Marketing strategy doesn’t mean that your brand must be in all media, but it applies an action plan where the points of contact between the consumer and the brand are active and coordinated with defined objectives.

If a brand wants to start thinking about omnichannel, it must be open and involved, so the customer’s experience is pleasantly personalized, continuous and universal.

And if your company already has an Omnichannel Marketing strategy, we recommend you implement the following tips:

Take into consideration the content
As with any campaign, the content will be the soul of your omnichannel efforts. First, you must analyze the content you have, and if this is able to have the attention of your buyer. It is important to remember that when you work with attractive and quality content, it speaks well of your brand.

Base your strategy on Customer Service

It is essential that the Omnichannel Marketing experience focuses on the customer. First, you must know your target customer and the preferred channels. Once you know them, you must improve response times in all areas. Faster responses not only improve engagement with potential customers but also reduce the turnover of existing ones.

All channels must be in the same line

Imagine that you send an email to your potential client who recently subscribed to your newsletter. After reading the email, they access their Facebook page, and it has a different logo on the profile. Remember: Visual consistency is not only a priority: It also needs your message and language to be aligned across all channels. By doing this, you avoid conflicting messages and prevent campaigns from competing with each other without knowing it.

Improve customer service in-store

Optimization through digital channels is important, but for those with physical stores, all work doesn’t stop there. Customers want a perfect shopping experience: It is vital to maintain brand and message consistency between the digital and the physical world. The integration of technology in the store experience presents an excellent opportunity to maintain the momentum established before the purchase.

Use integrated systems

To put everything together and track the success of your Omnichannel Marketing strategy, you must be able to measure and act with the correct metrics. However, this will not be possible unless all of your relevant marketing tools are integrated. Doing this also decreases ambiguity and cleans up your data. Some platforms make this process accessible to companies of all sizes. There is a lot at stake in your business to delay the first step for more time. The only way to prosper is to fulfill the promise of personal, omnichannel experience.

Success Case in LDM: Novey, The Power to Carry Everything

One case of success we had in the work in Omnichannel was the Campaign of Novey: The Power to Carry Everything.

The first campaign with stickers made by the company offered its customers the possibility of buying and receiving them in-store or at home to their address. Only in its first week, they achieved 185,000 reproductions, more than 1,600 interactions with the ads of the promotion and 150% of the expected sales.

Customers prefer to shop at companies that provide excellent customer service experience. While companies have been focused on working on their Omnichannel Marketing strategy for more than a decade, not many have been able to offer a transition according to their needs. That’s why today we leave you a super short video so you can learn more about the buyers’ journey in Omnichannel Marketing.

Tag: United States

Performance Marketing – What is it and how to use it?