COMMENTARY

Embracing Psychology in A Post-Keyword Age

• by Brooke Abbott , May 10, 2024

The following was previously published in an earlier edition of Marketing Insider.

Pay-per-click has relied on the precise and strategic use of keywords, forming the foundation of campaigns and signaling user intent. Marketers have spent countless hours understanding search intent based on keywords to build successful campaigns. Measuring keywords as an indicator of success has only furthered marketers' reliance on keywords as measures of success. As Google encourages its proprietary AI measurement solutions to improve consumer privacy, we will no longer measure performance as 1:1 to keywords.

Additionally, Google’s pressure to limit transparency and control is a standard frustration among paid search professionals. For example, PMAX campaigns have sunsetted the need for keywords.

Alongside this, Google has provided low visibility into ad placements. With the release of PMAX, the writing is on the wall, and the loss of keywords is on the horizon.

What’s our option when keywords die? The answer is evident: audiences. The solution is to prioritize the underlying psychological drivers of customers in your paid search strategies. An audience-based approach will safeguard your paid search strategy when keywords are extinct.

Why Audience-First Strategy is Crucial for Paid Search Success

Audience segments, like in-market or affinity lists, have been secondary factors in understanding intent. We must start rethinking how we approach search intent: audiences first, keywords second. Search demand will begin to mimic other higher funnel strategies, relying on context and behavioral cues. How can we begin to humanize our customers in the paid search space? One tool is Resonate, an AI-based research item that surfaces insight into customer psychographics, supporting an audience-based approach.

Consider this: when did you last spend over five seconds before feeling or taking action? We are programmed to avoid harm and discomfort because of our primitive unconscious brain. “Probably 95% of all cognition, all the thinking that drives our decisions and behaviors, occurs unconsciously—and that includes consumer decision,” Harvard Business School professor Gerald Zaltman told the Harvard Business Review.

If 95% of our actions are based on automatic judgments and attitudes, how customers respond to our presence online is fundamental in driving actions: For us, that’s ad copy and landing pages.

Section: Crafting Effective Copy for Targeting Audience Intent Buying

Preparing for audience intent buying in paid search begins with ad copy. Do not assume you know what your customers’ unconscious beliefs are; your assumptions are likely incorrect. With the right ad copy, we can create a feedback loop for Google to serve ads to the right customers.

Our team tested this theory and observed promising results by including a persona-focused copy.

Next, craft consistent language from the ad to a landing page. Humans have limited processing power and often fail to think rationally. Lower the effort required to encourage conversions. If your ad copy promises something, don't force added effort on landing pages.

The death of keywords is not the end of PPC but the beginning of a more intuitive, human-centric approach. Getting curious about your customers is the first step. Then comes investing in solutions that reveal the human behind the device. Ensure your business has first-party data to establish audiences. Second, develop content and copy that addresses those audiences in your campaigns. This will give you the upper hand against algorithms.

COMMENTARY

Is Sinclair Looking to Back Out of Local TV? Not Entirely

• by Wayne Friedman , Staff Writer, 9 hours ago

Sinclair Inc. -- one of the biggest U.S. TV station groups -- wants to get smaller, perhaps by 30%, according to reports.

Is this a sign of bigger moves to come for the company?

Some time ago, Sinclair CEO Chris Ripley mused that the company might consider selling undervalued businesses, “de-leveraging” assets. And in what may be one hint, he said: “We have no sacred cows.”

Well, there has been one sacred cow for the company: TV stations. Long before buying regional sports networks (Fox Corp), or even a cable sports network (Tennis Channel), Sinclair cut its media teeth with local TV station outlets.

Sinclair has around 185 U.S. TV stations in 86 markets -- second only to Nexstar Media Group, which has over 200 stations in 117 markets.

Reports suggest Sinclair would still retain 70% of those TV stations, as well as its majority stake in its beleaguered Diamond Sports, its regional cable TV sports network group. 

It was in 2019 that it bought the former Fox owned regional sports network group (through Disney) for $10 billion.

Now, five years later, it is a shell of what it was -- due to consumer cord-cutting and pay TV distributors' disinterest in carriage for these networks which yield slim to no profit margins. 

This all means that Sinclair needs to be more sharply focused on identifying the most and least productive business across the entire company.

TV stations for sale are estimated to comprise a broad mix of major TV network affiliates (Fox, CBS, ABC, NBC, and the CW) in mid-size markets that could fetch some $1.6 billion.

We all know the trend lines here: Massive changes in the linear TV landscape are occurring for both national and local TV outlets.

Cord-cutting has not just affected all cable TV and broadcast networks, but TV stations of all types.

A major focus for local TV stations -- especially those that are struggling -- can be the crucial distribution and carriage fees.

Also, as core TV advertising has been a weak growth business, TV stations are increasingly dependent on the bump those outlets get from political advertising revenues every other year (Midterm and Presidential election years) which can result in healthy quarterly financial reports.

For Sinclair, slimming down its legacy TV business to the most productive TV stations then makes sense.  

The next question is what those TV stations will mean to their associated broadcast TV networks, amid their own issues when it comes to cord-cutting. 

The question is how fast change will take place. The forest of live, linear TV isn't just slowly thinning -- big branches are being taken down.

 Something else to share with your direct clients. Philip Jay LeNoble, Ph.D.

COMMENTARY

How To Advertise in an Election Year

• by Kambrya Blake , 3 hours ago

During election years, advertising spaces become battlegrounds of competing political messages.

From television commercials interrupting prime-time shows to sponsored posts infiltrating social media feeds, the saturation of political ads across traditional and digital channels is undeniable.

As a result, businesses must accept the challenge of capturing their target audience’s focus.

This is no small feat. Ad spending from political advertising alone is projected to increase by $12.32 billion this year, according to a report by research firm Insider Intelligence. And according to Forbes, “82% of B2C marketing executives in the U.S. have concerns about marketing… during this year’s election cycle.”

However, businesses can take steps to ensure continued awareness and engagement.

Navigating Ads, One Platform at a Time

One approach during the political push is to be selective about your platforms. EMarketer projects U.S. ad spending to continue a heavy CTV focus, with some sources citing as much as 45% of digital ad spending on CTV alone. This is important for companies to keep in mind when weighing the pros and cons of selecting an advertising platform.

Several digital media outlets have limited political advertising policies, helping combat ad fatigue. The following are some of the major players in the ad space who have taken a proactive stance against political advertising:

• Prohibiting political ads: Pinterest, LinkedIn, Amazon, and TikTok.
• Limited allowance: Reddit

While advertising on these websites can help avoid the political humdrum, you must still consider competition from businesses. it’s vital to recognize that the quality of your ads will directly impact your success.

Ad(d) Value

That brings us to our next strategy: increasing the quality of your ads. Implementing compelling storytelling and brand messaging can transform an advertisement from an interruption into a meaningful experience.

Imagine this scenario: you're watching TV, enduring a barrage of political smear campaigns during breaks. As you head to the kitchen, you're suddenly met by sounds of nature emanating from the television. You peek back to see Subaru's "A Beautiful Silence" commercial. At that moment, you feel a sense of calm. This stark contrast between an intrusive ad and one that adds value illustrates the power of storytelling in capturing audience attention and fostering positive brand associations.

Most platforms use an auction system to determine which ads are shown, so the more people engage with your ad, the more the platform sees it as valuable and charges you less to show and take action on it. By focusing on creating high-quality ads, you can compete effectively.

Don’t Forget Your Tried and Trues

It’s easier to convert an existing customer than to win a new one. Double down on retention and engagement strategies to ensure customers remain brand advocates. This might entail rewarding repeat customers with discounts, early access to new products, or points redeemable for rewards.

You can also leverage customer data to offer personalized recommendations, launch email campaigns, etc., to build stronger relationships. Businesses can encourage engagement by running contests related to your offerings on social media, and encourage user-generated content by offering incentives for sharing photos or reviews.

Focusing on these actionable steps can turn an existing customer base into brand ambassadors, ensuring continued success even during a politically charged advertising landscape.

 Something toshare with your automotive clients. Philip Jay LeNoble, Ph.D.

AUTOMOTIVE

Brand Loyalty Wanes, Sustainability Becomes Key Buying Factor

• by Tanya Gazdik , 10 hours ago

Automotive marketers have an opportunity for nabbing conquest buyers like never before, according to a new report. 

Consumer loyalty is taking a backseat, with a staggering 82% of respondents open to switching brands, according to Teads in its latest global report, "Shifting Gears: Understanding the New Dynamics of Auto Buying Worldwide."

The research, conducted across 17 markets, aims to shed light on the key motivations and emerging trends for auto buyers around the world.

A significant portion of consumers (42%) are devoting two weeks or less to researching brands and models. To succeed in this environment, reaching consumers early and maintaining consistent engagement throughout their research journey is critical, according to the report. 

Sustainability is a key buying factor, with 42% of consumers solely considering hybrid or electric vehicles. However, this trend varies regionally. 

Consumers in Mexico, Brazil, and the U.S. are still showing a strong reliance on gas engines. Those in Italy and Spain are moving away from gas engines, but primarily focusing on hybrid options. France and Singapore consumers are showing the fastest adoption of both EVs and hybrids.

Buyers continue to do car research online, with 43% of those surveyed saying online resources are now more important than ever, and half of all car buyers beginning their research into different brands and models online. This digital showroom shift demands automakers prioritize a user-friendly and informative online presence. 

While online resources are crucial, car buyers still value trusted sources like manufacturer websites, according to the report. 

However, the power of online ads cannot be underestimated. They inspire  81% of consumers to take action, particularly younger demographics and EV considerers. 

What encourages users even more to consider a brand is to see it advertised across multiple screens (56%), highlighting the effectiveness of omnichannel marketing campaigns that combine online and TV advertising for a broader reach.

Given the shortened decision-making timeframe, maintaining an always on presence is crucial for automotive marketers, according to the report. Brands must engage potential buyers continually prior to and throughout their research journey, influencing them as the relevant set of options shrinks.

 Something to share with your direct clients. Philip Jay LeNoble, Ph.D.

COMMENTARY

How Gen Z's Love for Stores Is Reshaping D2C Landscape

• by Sarah Mahoney , Staff Writer @mahoney_sarah, May 6, 2024

Aerie stores are a favroite with Gen Z shoppers

While younger consumers’ love for digital brands and experiences has formed the bedrock of hundreds of direct-to-consumer companies, new data reveals how that’s changed.

About 31% of Gen Z now says that in-store shopping is how they prefer to buy fashion and accessories, the highest of any age group, and 41% like to shop in a hybrid way, using both in-store and digital. According to 2 Visions, the market research firm that conducted the research, that’s radically different from millennials, with only 19% favoring in-store and 66% preferring hybrid shopping for such purchases. (Gen X and baby boomer consumers closely mirror millennial choices.)

Yates Jarvis, principal at 2 Visions, says Gen Z gives three reasons for this preference. While fit is first, the second-most mentioned reason is for comparing two or more fashion and accessory items in person. “User experience is built around navigating a large selection to a single item,” he tells D2C Insider. “Comparison UX doesn’t exist for clothing.”

But importantly, Gen-Zers say they simply like browsing a store. “It’s the experience of getting out. Because they are digital natives, they might have had fewer of these experiences,” says Jarvis.

Yet industry perceptions persist that it’s older consumers favoring stores, despite post-COVID behavioral shifts.

“We often find senior executives are working off of data from a few years ago, if not decades ago,” Jarvis says.

Income plays a part in people’s channel preferences. Virtually all the study’s high-income respondents say they can access in-store shopping within 30 minutes. For those earning less than $50,000 per year, only 85% say they are able to do so.

The most hybridized shoppers are the most affluent, with 67% of those earning $100,000 or more per year saying they use both digital and physical.

In-store shopping habits are also impacted by where people live. And since Gen Z-ers are often renters in urban areas with many stores, these shoppers have more stores to enjoy.

But preferences aren’t that simple, adds Jarvis. For example, shoppers of all ages in the densel -populated Northeast region lead the nation in exclusively buying clothing online. However, they have a higher preference for in-store shopping for home décor and personal-care products. “It isn’t so much about the way they shop overall,” he says, “but the way they prefer to shop by category.”

What do these findings mean for all the retailers who can’t seem to lure Gen Z into their stores? For D2C brands now scrambling to open their own stores, should they go wholesale, or focus on pop-ups? “They keep thinking like businesses, and they go for scale,” Jarvis says, “often launching more stores than I would recommend.”

Instead, he believes retailers should consider each store an R&D lab. “They need to develop a better connection to Gen Z, in terms of research and intel, and then they need to have a better testing engine.”

Those small-scale efforts won’t drive much revenue at launch. “But the goal should be understanding the nuances of the experience that Gen Z wants, learning how to delight them. Retailers can’t keep rolling out the in-store experience of 10 years ago and expect it to work.”

Another disconnect, he says, is that department stores were “built on the power of brands, and that’s hurting them with Gen Z.” While previous generations were drawn to big national names, “Gen Z has much less interest in incumbent brands, and a much higher desire to trust up-and-comers.”

The company conducted the research, based on a survey of 2,400 U.S. shoppers, with Portless, a third-party logistics company.

Amazon Ads Expands Prime Video Interactive Ad Formats

• by Wayne Friedman , Yesterday

Looking to expand its e-commerce/digital consumer shopping experience, Amazon Ads will offer advertisers “shoppable carousel” TV advertising opportunities where viewers can shop multiple product variations via remote control during TV shows and/or movies advertising breaks on the Prime Video streaming service, including live sports.

 

This and other new interactive TV ad formats will be shown to media agency and advertising executives in New York City at Pier 36 during Amazon's streaming TV upfront presentation on May 14.

 

Other interactive ad formats will include “pause ads,” which occur when viewers press pause on their remotes. These will be “translucent” on-screen ads for product and other brand messaging, along with "Add to Cart" and "Learn More" on-screen options.

 

Also there will be interactive “brand trivia” ads -- messaging to help advertisers add more storytelling and “factoids” about their brands, where consumers can also purchase products directly and claim Amazon shopping credits and rewards.

 

All this expands on Amazon Ads’ existing interactive video ads formats, which started up in 2021, where consumers use TV remotes to make purchases and other actions.

 

Amazon interactive ad formats are available a majority of Amazon’s streaming TV businesses, including on TV shows, movies, and live sports on Prime Video, Twitch, Fire TV Channels, and 3P streaming TV apps. 

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COMMENTARY 2 Content Lessons for Retailers from Top SaaS

COMMENTARY

2 Content Lessons for Retailers from Top SaaS

• by Colleen Jones , Yesterday

Retailers face more pressure than ever to offer their customers digital experiences that meet or exceed high expectations. Content is the substance of those digital experiences, so retailers need to get content right. Why not take inspiration from the pioneers of digital experience, SaaS (software as a service) companies?

Let’s consider why these companies are so good at content. From day one, successful SaaS support the end-to-end customer experience digitally. That means successful SaaS have defined complete customer journeys and mapped content to every phase or step of those journeys. That’s a lot of effort resulting in many lessons learned. Let’s turn to two that can benefit retailers.

Show -- don’t just tell -- your brand purpose. A meaningful purpose can differentiate a retail brand for any generation, but especially the up-and-coming Gen Z. One recent study by Roundel found 73% of Gen Z participants will buy only from brands they believe in.

Adding purpose to a brand starts with saying what the purpose is. For instance, the wildly successful Salesforce has always described its purpose as “building stronger relationships.” But that can’t be where purpose ends. A brand has to demonstrate the purpose or risk coming across as not genuine or even hypocritical.

Salesforce is a model for showing -- not just telling -- its purpose through content. The company launched a Netflix-like experience called Salesforce+, which provides on-demand content with very high production value about timely business and marketing topics, often involving Salesforce customers. When Salesforce launched the platform, CMO Sarah Franklin explained “the always-on, business media platform…builds trusted relationships with customers and a sense of belonging for the business community.”

I’m not saying every retailer has to replicate Netflix. But every retailer can offer content that demonstrates its purpose. For instance, Patagonia’s catalog is part outdoor magazine, with stories that illustrate bringing its environmentalism to life.

Help customers help themselves. As retail becomes an increasingly digital experience, so does retail customer service. And great SaaS have figured out not only how to handle customer service but also how to enable customer success.

Outstanding SaaS such as Mailchimp and Airbnb offer a thoughtful (and often rigorously tested) combination of content to help customers solve problems, become aware of useful features, and get more value out of the experience. Content examples include, but are far from limited to:

• Microcopy such as labels, instructions, headings, icons, and error messages.
• Wizards, or step-by-step interactive guides.
• FAQs that are easily accessible by chat and voice search.
• Contextual help such as tool tips and notifications.
• Best practices and success factors based on the most successful or relevant customers.
• Chat bots or copilots fueled by FAQs, contextual help, and other content.

Forward-thinking retailers are already taking a cue from SaaS to better help customers. For instance, Walmart recently launched a copilot that allows customers to make requests such as “Help me plan a Cinco de Mayo party” and receive relevant product suggestions from all departments. What would make this experience even better is guidance, tips, and inspiration content integrated into the results, or a “wizard” (see above) experience.

So, as retailers compete on digital experiences, they have an opportunity to gain advantage by acting like top SaaS brands. Imbue the experience with content that shows your purpose and empowers customers to succeed.