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Native advertising 2020 – 5 global futures for a format on the rise

Global spending on native ads is predicted to hit $85.5bn a year within the next two years; it’s a format that is deemed to offer a more appealing and engaging user experience and is thus rapidly growing in popularity among marketers and brands – likely to overtake banner ads as the field leader in display advertising. Here’s a glimpse into tomorrow’s digital ad world and what the more creative, relevant and editorially compelling native advertising 2020 could add up to.

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Brazil Country Focus UK USA

GMA and fast.MAP research: Fancy making riches from the rag trade in Brazil and America?

David Cole (pictured) examines the latest fast.MAP/GMA research and discovers a booming market.

If you’re thinking of selling direct to shoppers in the USA and Brazil, a good bet would be to start with clothing – since clothes are the most commonly direct-purchased foreign items in both countries – by 44% in Brazil and 32% in the USA.david-cole-md-fastmap3-web

According to new online research carried out in August by fast.MAP for the GMA, accessories are the next favoured foreign direct purchase in Brazil (35%), followed by technology items ((33%). In the USA, it’s books 26% and food (25%), whereas in the UK it’s CDs/DVDs/games (26%) and books and technology (both 23%).

Foreign white goods such as dishwashers are least likely to be bought direct by Americans (9%); musical instruments and DIY/gardening tools by Brazilians (both 7%); and motor vehicles and white goods by the British (both 3%). See chart: http://bit.ly/1ttG2Lf 

12% of US, 14% of Brazilian and 38% of British adults have bought direct from abroad in the last year. And the market is set to expand since although one per cent of Brazilians don’t plan to do so again, 19% are considering their first direct purchase from abroad, as are 16% of Americans.

27% of US consumers ‘sometimes’ or ‘often’ buy direct from abroad and a further 17% do so ‘rarely’.

Neither population is as committed to buying foreign goods direct as are those of the seven European countries already examined in this on-going GMA study. See chart: http://bit.ly/1vQMTUb

If you need tips on where to promote your goods, it’s worth noting that Brazilians’ five most popular methods of sourcing foreign goods are company websites, social networks, online publications, email and search engines. All were used by more than a third of buyers in the last 12 months.

Around three in ten Americans have sourced via search engines and emails, a quarter from company websites and two in ten from TV or radio ads, auction sites or social networks. Chart: http://bit.ly/1oRzxCr

When translation problems occur they can lead to lost sales: 62% of Brazilians and 68% of Americans have not encountered language difficulties when buying direct from abroad, but only because they either speak the language or use websites which are in their native tongue.

Ten per cent of Americans and 18% of Brazilians successfully used translation software, but 7% of Americans and 10% of Brazilians suffered problems with it.

Two in 100 received language help from the seller and 6% of Americans and 4% of Brazilians were helped by a friend. Chart http://bit.ly/1AgWK4o  

Of the 22% of Americans who had language problems, 7% managed to successfully buy the goods they wanted while only 4% of the 20% of linguistically-challenged Brazilians managed to.

Americans were far less likely to be put-off by potential currency, refund or customs problems: 38% had no such concerns, compared with 34% of Brits and 17% of Brazilians. But a clear multi-lingual explanation of company policy on these issues would help to allay fears.

Brazilians (55%) and Brits (46%) are most worried about additional postage costs or customs charges, while Americans are most concerned about the inconvenience of returning faulty or unsuitable goods (38%). Financial transactions with a different country are the least pressing (though still a significant) concern: USA and UK 31%; Brazil 37% http://bit.ly/1tnk1zp

Nineteen per cent of Americans, 13% of Brazilians and 8% of Brits have returned goods they bought direct from abroad. In the USA the majority did so by pre-paid post/courier, while in Brazil (41%) and the UK (54%) the majority bore the cost of return  postage/ courier.

Both delivery to a local agent/ retailer/ courier depot or collection by a local agent/ retailer/ courier were significantly more common in the USA (39% and 34% respectively) than in the UK (4% & 17%) or Brazil (19% & 21%).

Companies serious about expanding their direct sales into other countries can maximise their chances of success and avoid costly mistakes, by first simultaneously and speedily using online research to test reactions to their product, prices, promotional material and incentives in each country.

For more international marketing insights click here.

Methodology
The questionnaire was run from August 22 to 29, 2014, to a US panel of 2.9million adults and a 149,000 Brazilian panel.

David Cole is MD of fast.MAP. Email: david.cole@fastmap.com

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Marketers split on ambush marketing ahead of World Cup kick off

Carlsberg has set the standard for this year’s FIFA World Cup adverts with the most memorable advert from South Africa 2010, according to research byWorld Cup marketing, digital and communications recruiter, EMR.

More than one in four (26%) marketing professionals polled by EMR picked out Carlsberg’s ‘Probably the best team talk in the world’ campaign as making the biggest lasting impression, ahead of Nike’s TV campaign (18%) and Bavaria Beer’s ambush stunt (17%).

Both Carlsberg and Nike opted for high profile tie-ins with sporting icons in 2010. Carlsberg’s advert featured English greats Jack Charlton, Trevor Brooking and Stuart Pearce, while Nike’s ‘Write the Future’ campaign employed modern-day stars including Wayne Rooney and Cristiano Ronaldo.

In contrast, Bavaria – a non-FIFA affiliated Dutch brand of beer – ambushed the Holland vs. Denmark game with a cohort of 36 women who were pictured in the stands wearing short orange dresses carrying its logo: a stunt that fuelled the debate about the rules on ambush marketing to this day, as unofficial sponsors are prohibited from advertising in FIFA venues.

EMR’s research shows marketers are divided on the subject in the build-up to the 2014 tournament: 32% feel ambush marketing should be subject to stricter regulations while 33% feel the opposite, with the remainder unsure.

Just 4% voted official sponsor Budweiser’s ‘Bud House & Bud United’ campaign as the most memorable from 2010, with Bavaria’s stunt also having made more long-term impact than efforts by Pepsi, Coca-Cola (both 13%) and Adidas (10%).

Sportswear giants benefit most from World Cup sponsorship

More than one in four (28%) marketing professionals identified Nike as the brand which benefits the most from its association with the World Cup.

Rival sports manufacturer Adidas was placed second with 19% of the vote, having signed up for the next four tournaments until 2030.

With almost half (47%) of marketers picking out one of the two sportswear giants as enjoying the greatest brand benefits, the results suggest that brands with sponsorships which closely match their business focus have the best chance of standing out.

Coca-Cola and Visa were tied for third place on 14% with both having also extended their sponsorship commitments until the 2022 World Cup in Qatar.

Tournament expected to enhance Brazil’s reputation

Almost half (49%) of marketing professionals predict that the 2014 World Cup will have a positive impact on Brazil’s international reputation. Despite political and social unrest in the build-up to the event, this is twice as many as the 24% who feel Brazil’s reputation will suffer from hosting the tournament.

More than half (51%) believe Brazil’s tourist industry will grow as a result of the World Cup, while nearly a quarter (22%) forecast a rise in international business with Brazil.

One in ten (11%) expect the World Cup will result in more overseas investment in the country, while 7% predict a surge in migration and job relocation.

Simon Bassett, managing director of EMR – which has offices in Leeds, London, Moscow, São Paulo and Singapore – said: “The World Cup will see many of the world’s most recognised brands competing for the attention of a truly global audience. The mix of high drama, national pride and multi-million pound reputations makes the tournament a genuine theatre for marketing excellence.

“Competition is not limited to the pitch, with a galaxy of sponsors joining the host nation in the limelight. Our findings suggest the ultimate prize awaits those brands who can best marry strategic creative concept with memorable execution.

“The 2010 controversy over ambush marketing showed how original thinking and opportunism can also help to make an impact. But, given how challenging it is to stand out in this hugely competitive environment, it is no surprise to see opinion so evenly split about the rights and wrongs of sidestepping the rules governing big-budget sponsorship deals.”

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Americas Brazil UK

Get on the ball – plan World Cup promotions now

The forthcoming 2014 World Cup in Brazil will command a worldwide audience – so don’t miss the chance to theme your promotions, says Lorraine Horley (pictured).  Lorraine Horley_03 (WEB)

There are very few sporting events that can command a global audience like the World Cup. This is an event that will unite a nation. We will cheer with delight as our supporting team progresses through the competition and cry, scream and shout together if it all goes horribly wrong.

It is this widespread public engagement that makes the 2014 World Cup the perfect theme for promotions.

So it’s no surprise then that many brands have already signed up to Brazil 2014 as partners, believing that their association with such an event will bring them attention and adulation.

Yet, with many legal restrictions in place that will no doubt be strictly enforced, it may seem difficult to create ideas that would work within the limitations of the regulations.

It is possible, as many major brands have shown in previous years, without resorting to guerrilla marketing.

However, if brands want to capitalise on this enormous event then they need to start planning now before it’s too late. Our proven experience in the industry has shown us time and time again the need to plan early and be on the ball.

There are plenty of ways brands can get involved – from asking consumers to choose a particular team and see how far they will go in the competition to how many goals a country will score in total during the tournament. There could be also be the opportunity to predict the finalists and the top goal scorer or even put forward the idea of picking a game and asking them to accurately identify the first goal time.

Although certain words, phrases, logos and products cannot be mentioned in the copy, running successful, football-linked promotions legally before the event is certainly possible. To make the most of the enormous interest, now is the time for marketers to start planning and talking to experts.

Lorraine Horley is head of client services at UK-based fixed fee promotions company Fotorama.