Idle thumbs: Why commuters are the best audience

Commuter

A guest post by Simon Bailey, CEO of Axonix, an advertising technology company backed by Telefonica and Blackstone.

Any marketer worth their salt knows all customers were not made equal, and that’s particularly true of commuters, where getting the bus or train into work is now a prime opportunity to check our smartphones and tablets to catch up on the latest news, gossip and games. With the average number of devices set to exceed four per person by 2020, we’re increasingly reliant on the small screen, and at no time more so than when we have some time to kill on-the-go.

If you’re not ‘on-board’ with this digital shift in media consumption or don’t plan to be – I’d stop reading now. But if you’re an ambitious business with high growth targets and a clear sales objectives, your ears should certainly be pricking up. The commuter audience is a highly connected and available audience, and it’s these eyes at these times which will stand to convert the most sales leads on your campaigns.

Understanding your audience: Being the early bird

Almost 90 percent of consumers admit to browsing and buying on smartphones and tablets during their commute with over half expecting to shop even more during this time in the future. So reaching the right person with the right message at the right time between early morning and after 5pm is now invaluable to your operational longevity, and it’s critical to be able to pinpoint exactly when that is in order to get the best result.

Commuters have various stages of browsing behaviours: for instance, when bored and browsing as opposed to when they have a definite purpose such as buying a certain piece of music, and so less susceptible to additional distraction.

Elsewhere, there is a natural variation on activity which is preferred by commuters inside and outside of London, with research revealing that 20 per cent use their device to read online news and 25 percent to play games via apps such as Farmville or Candy Crush in the capital, over a third higher than those further afield.

Internet browsing, social media and streaming video content also scored highly, to be expected, and London bus users were found to be the most social, with less than 10 per cent logging on to work systems during this time and empowered with better signal leading to greater use of social and leisure based applications.

Programming into the consumer psyche

So, once your target audience is identified, and when, how can you best connect with them? It’s all about programmatic trading; buying ad-space in real-time using data-led computer algorithms, to reach exactly the right user at the right time with the right content for optimum engagement – consumers are using their devices in rush hour, while commuting – and programmatic will help you specifically target the right people during these times.

Sounds like a ‘no-brainer’ right? Programmatic tools have increasingly been embraced by many, but many more are still reluctant or uncertain about its benefits. This is largely due to a lack of understanding of mobile ad exchanges and their benefits with over 40 percent of marketers admitting they still “don’t have a clue” what programmatic actually means.

Understandably, it’s in many marketers’ interests to avoid taking a chance on new technologies, with many taking a risk adverse attitude to doing so, and preferring the more established ROI they derive from traditional media. However, these individuals could find themselves redundant in a few years’ time, replaced by their more mobile-savvy, and dynamic peers – those that understand when their audience needs to find something to entertain them whilst on the bus or the train, and just so happens to serve them a targeted ad at that time.

Mobile devices are set to keep rocketing in popularity, with vendors and networks collaborating to increase connectivity and availability of services whenever and where ever you are. And transport companies know this. Just take for example The London Underground, which is investing rapidly in a Wi-Fi programme, rolling out internet services to over 150 stations across the capital. People want their phones on the go and it’s becoming easier for them to get online anywhere – even when underground!

There’s clearly a real opportunity here for marketers to reach huge and highly available audiences – provided they take the correct approach to mobile advertising. So, with all that in mind, its never been a better time to join the crowd and connect with your target consumer. As I said above, marketers need to understand their customers – and realising when they are looking for entertainment on the move and taking steps to reach them at those times could be your rush hour jackpot.

Simon BaileySimon Bailey is the CEO of Axonix, a role which he began in April 2015, having previously served as CCO since April 2014.

Previous to Axonix, Simon was at Velti where he was Vice President, Global Demand, managing the global advertising business.

Simon started his career in advertising in 1996 working for The Times. Since then he has spent the past 15 years working in the digital space where he has sold media, developed sales teams and built cutting edge advertising technologies for the likes of Excite Inc, 24/7 Real Media (WPP) and OpenX Inc.

Simon was a member of the founding team at OpenX where he was responsible for the Product Strategy designing and building the first version of the OpenX Real Time Bidding advertising exchange.

Simon is married with four children and has a degree in French and Politics from the University of Leicester.

[Image at top via Mobile Marketing.]

Dick Costolo: Twitter unfollows the leader as social milestones are missed

Welcome back, @jack !!

The news yesterday that Twitter CEO Dick Costolo is stepping down from that leadership role next month has attracted widespread commentary and opinion, not least on Twitter itself.

There’s credible opinions that Costolo is going because he hasn’t evolved Twitter as many observers and critics expected or believe he should have. Indeed, the stock market greeted yesterday’s announcement with a 10 percent rise in Twitter’s share price at one point.

An analysis in the Guardian today – you can read the full story below – is a pretty good assessment of a real predicament confronting Twitter, not only from an investor’s perspective but also from that of users and marketers.

[…] Twitter accounts for 1.6% of the critical US digital advertising market – a market worth $50.73bn – compared with Facebook’s 7.6%. Twitter accounts for 3.6% of US mobile internet ads to Facebook’s 18.5%. And in mobile display ads Twitter has a 7% market share compared to 36.7% for Facebook, according to eMarketer.

On user numbers alone – Twitter has 302m monthly active users to Facebook’s 1.44bn – the share of ad market doesn’t seem so surprising. Yet it’s the slowing down of growth that has concerned investors: Twitter’s monthly active user numbers have fallen 30% from 2013 to 2015, and by 2019 growth – a critical indicator of future potential revenues – is heading for a slowdown to 6%.

Yet there’s a more fundamental element that needs attention – what is Twitter?

[…] who is Twitter for? How does it distinguish itself against Facebook? And how can it expand its service while remaining simple and accessible?

Those questions aren’t new at all. Even though how Twitter itself talks about what Twitter is has become more clear in the past year or so, is it how users, marketers, etc, see Twitter?

Our mission: To give everyone the power to create and share ideas and information instantly, without barriers.

I’m not so sure. As a Twitter user since 2006, I’m often asking that question myself even though I’m more than happy to continue my thinking out loud and occasional engagement with others on the platform. I don’t have massive personal expectations of Twitter beyond the implicit simplicity behind that mission statement (but I have a different view if I put on my marketer’s hat).

Yet maybe Twitter’s not entirely sure about that either – the mission statement is slightly different on Twitter’s investor relations page.

Twitter strives to give everyone the power to create and share ideas and information instantly, without barriers.

Maybe change is afoot already: Twitter also announced yesterday that the 140-character limit on direct messages will be changed to a whopping 10,000 characters. Note this is for DMs only – the 140-character limit for regular tweets remains. For now, at least.

While that news will be appealing to many who will relish the opportunity of penning short stories to DM to their friends, I fear it also opens the door to push marketing – whether you like it or not – on a grand scale.

In any case, might Costolo’s departure herald a pivot of sorts in Twitter’s next steps with the (re)appointment of Twitter co-founder Jack Dorsey as interim CEO while Twitter starts a search for a permanent replacement?

There are all sorts of opinions about that.

[The Guardian report below is published here with permission via the Guardian News Feed plugin for WordPress.]


Powered by Guardian.co.ukThis article titled “Dick Costolo: Twitter unfollows the leader as social milestones are missed” was written by Jemima Kiss, for theguardian.com on Friday 12th June 2015 09.41 Europe/London

It says something about the extraordinary scale of social platforms when a technology behemoth with 302m active users every month can be seen as failing to achieve its potential. Yet that is exactly why it appears that Twitter’s chief executive, Dick Costolo, now has to go from the company’s top post.

In after-hours trading following the sudden announcement on Thursday, Twitter stock briefly fluttered up 8% higher. It was a reflection of the uneasy feelings from investors towards a man who fell under their increased and ultimately poisonous scrutiny as he navigated the social networking firm through its public offering in November 2013, having been CEO since he took over from Evan Williams in October 2010.

Despite being a very different product serving a very different audience, Twitter is often compared to Facebook – and often unfavourably. Therein lies an identity crisis of sorts.

For Twitter’s investors the concern was less about user numbers than the growth and aggressiveness of the company’s online advertising. While Costolo was popular with many staffers for bringing structure and co-ordination to a chaotic young company, and took it to a market capitalisation of .4bn, he also oversaw the process of risk and uncertainty in pushing towards a brand new space.

Costolo and Jack Dorsey, who now takes over as interim CEO, have both insisted that the move was not connected to Twitter’s recent financial results – which saw those user numbers grow just 4.86% – so much as a decision made purely by Costolo himself, as a capstone to discussions that had been going on since last autumn.

Right now Twitter is in danger of becoming a niche product: it is beloved by journalists (guilty) and marketers, yet viewed with confusion by mainstream consumers.

Where the selective friendship groups of Facebook make sense (to varying degrees), Twitter’s public face can be more intimidating. On the other hand, the 140-character simplicity of Twitter’s platform and the potential to be the “civic square” of popular debate offers just as much value and, usually, less flatulent conversations.

In an era of endless feeds and the digital burden of email and obligatory posts from friends, Twitter’s brevity and ambience is a welcome change; what you miss is just missed – not mourned, nor added to a tedious, ever-increasing pile like email.

But in focusing its business Twitter has made some strategic decisions, such as closing off access to selected third parties – Instagram at one point, Meerkat at another, and earlier to a wider stream of third-party developers. Twitter was under pressure to protect its valuable audience and its scale, and in doing so cut off the community that helped it grow.

All of which left many users and especially those investors wondering: who is Twitter for? How does it distinguish itself against Facebook? And how can it expand its service while remaining simple and accessible?

Twitter accounts for 1.6% of the critical US digital advertising market – a market worth .73bn – compared with Facebook’s 7.6%. Twitter accounts for 3.6% of US mobile internet ads to Facebook’s 18.5%. And in mobile display ads Twitter has a 7% market share compared to 36.7% for Facebook, according to eMarketer.

On user numbers alone – Twitter has 302m monthly active users to Facebook’s 1.44bn – the share of ad market doesn’t seem so surprising. Yet it’s the slowing down of growth that has concerned investors: Twitter’s monthly active user numbers have fallen 30% from 2013 to 2015, and by 2019 growth – a critical indicator of future potential revenues – is heading for a slowdown to 6%.

For a young public company those numbers are sounding more and more like a death knell. For investors, Twitter’s plans – and Costolo carried the can for this – have not confidently set out its future. Chris Sacca, a major investor, wrote an insightful essay on the company’s challenges: “Twitter has failed to meet its own stated user growth expectations and has not been able to take advantage of the massive number of users who have signed up for accounts and then not come back. Shortcomings in the direct response advertising category have resulted in the company coming in below the financial community’s quarterly estimates.

“In the wake of this Twitter’s efforts to convince the investing community of the opportunity ahead fell flat. Consequently the stock is trading near a six-month low, well below its IPO closing day price, and the company is suffering through a seemingly endless negative press cycle.”

But he says Twitter “has boldness in its bones” and that it can improve by making the service easier for new users, more supportive for users intimidated by the site, and by making it feel less lonely.

guardian.co.uk © Guardian News & Media Limited 2010

Published via the Guardian News Feed plugin for WordPress.

Adding a face to the HSBC name could go a long way

HSBC coverage by the Guardian

Reputation is built on trust and, for HSBC Bank, that chain has been well and truly disconnected through the revelations of alleged dirty deeds in its private banking operation in Switzerland that say the bank helped a large number of its private-banking clients evade tax that have been paraded through the mainstream media over the past week.

Whatever the actual facts of the matter, HSBC is being pilloried left, right and centre as a financial institution that helps wealthy people dodge tax – a very popular topic for politicians in the UK at the moment, with a general election on May 7, 2015 (that’s less than 80 days away).

Not only that, the bank faces criminal charges in the US, France, Belgium and Argentina – although not in the UK – resulting from information revealed by whistleblower Herve Falciani, the former HSBC IT contractor who blew the lid on this scandal (and did that some years ago, according to BusinessWeek and Der Spiegel).

The political angle took centre stage mid week with HMRC, the government department responsible for the collection of taxes, robustly and publicly accused of failing its duty to pursue tax dodgers in this case, and tax avoiders – again, a popular topic for politicians.

As the week wore on and negative commentary intensified, there was little substantive word from HSBC about the issue other than reports on the bank saying that it all related to “unacceptable practices” within its Swiss operation that took place some years ago and which don’t reflect the bank’s way of doing business today.

Many newspapers have been publishing reports and other content that analyse the bank and its business practices that go way beyond this current scandal. Take the Guardian, for example, which has extensive coverage as the image at the top illustrates, all of which undoubtedly leave the reader with the strong feeling that HSBC is a secretive bank not to be trusted (at best), and one that is run by, employs, and does business with, people who behave like crooks (at worst).

The Economist has a good report on cases in recent years focused on data stolen to expose alleged tax evasion, and a candid assessment of HSBC’s current predicament:

The questions for the bank are whether it reacted quickly enough to tighten compliance with tax laws after governments started to investigate in 2010, and how much pain the scandal will cause.

And now the latest development this weekend – HSBC published a public apology in the form of ads in the national press on Sunday signed by Stuart Gulliver, CEO of HSBC Holdings plc, the UK-based holding company.

He says:

We would like to provide some reassurance and state some of the facts that lie behind the stories. The media focus has been on historical events that show the standards to which we operate today were not universally in place in our Swiss operations 8 years ago. We must show we understand that the societies we serve expect more from us. We therefore offer our sincerest apologies.

You can read the complete statement, embedded below:

HSBC Private Bank Announcement Feb 15, 2015

The document refers to another document the bank has published on an HSBC website entitled Progress Update – January 2015, a four-page report on this affair and some detail explaining what the bank has been doing “to prevent its banking services being used to evade taxes or launder money.”

I know nothing of HSBC’s crisis communication plan that surely is well into execution by now, nor the specific public or investor relations objectives of these documents this weekend.

Yet, I cannot see how two rather dry documents like this – PDFs at that: try reading those on your iPhone or BlackBerry – will do anything meaningful to address the assault on the bank’s reputation and the impending collapse of trust.

I’m reminded of the 2015 Trust Barometer published by Edelman last month, one of the findings in which clearly shows one industry sector where trust has declined for another year, even if by only one percentage point over 2014 – banks (page 16 in the report).

I’m also reminded of a point Edelman has made in almost every Trust Barometer since the first report was published fifteen years ago – the negative outcomes distrust in a company can create (and, in contrast, the benefits trust in a company can generate), as this chart illustrates (page 40 in the report).

2015 Trust Barometer page 40

If you want to really get attention to an apology in a crisis like this – especially one that embroils a company in an industry as reviled as financial services still is – you would want to present a face of humility, humbleness, honesty and authenticity, complemented by assurance, authority and the sense that “I will get things done.”

You may think such attributes come across in both documents. No, they don’t. It means a real face, not PDFs drummed up by the corporate writer which he or she affixes a facsimile of the CEO’s signature to one of them, with the other being wholly anonymous.

I’d like to see a bold move with the CEO on camera delivering the apology along with the plan on what he is doing to fix things, and with a promise to report progress in a similar manner. That means a video, posted on YouTube with open exposure to myriad sharing opportunities across the social web.

HSBC has a YouTube channel.

Even though the 2015 Trust Barometer shows yet again that CEOs generally are not trusted voices for a corporation (page 20 in the report), it’s a lot better than a sterile PDF.

Mobile can grow, but publishers are losing out on revenue

A guest post by Simon Birkenhead, CEO of Axonix, an advertising technology company backed by Telefonica and Blackstone.

Location-based mobile adFacebook recently announced its Q3 results and, for many in the industry, the most headline-grabbing statistic was that mobile ads now make up an incredible 66% of the social network’s total advertising revenue.

And yet, I reacted to the announcement with little surprise.

After all, it shouldn’t be news to anyone that mobile advertising is growing at a remarkable rate – especially when you consider there are currently more data connections in the UK than there are people. In August this year, mobile internet usage in the UK overtook desktop, meaning a majority of website visits now come from tablets and smartphones.

In the first half of 2014, mobile advertising in the UK exceeded £700 million – that’s around 20% of all digital ad spend and a whopping 68% growth over 2013. That’s more than radio and cinema advertising combined, and is fast approaching the scale of outdoor advertising.

However, despite this explosive growth of mobile advertising, I believe brands, publishers and consumers are still not being well served by mobile ads, and this is preventing mobile advertising from growing even faster.

Facebook, it seems, has done a great job at figuring out how to best present ads within their users’ mobile newsfeeds. However, most publishers I speak with say they invest a tiny fraction of their time thinking about how to optimise their own users’ mobile ad experiences. This is despite some publishers admitting they now see close to 50% of their traffic from mobile devices.

Facebook mobile ads

App developers also continue to stick rigidly to the tiny banner ad rather than exploring more engaging, and valuable, alternatives such as video and full-screen interstitials. Throw in the fact that mobile ads are often poorly targeted and it is no wonder brands struggle to find success through mobile.

So how to get it right? The winners will ultimately be those publishers who can provide a platform where brands can run engaging mobile ads that reach the right person with a super relevant message at the right time. On mobile this is even more critical, and even more difficult to achieve, because of the very mobility inherent in mobile device.

The heavily-touted silver bullet to this challenge – and one of the buzzwords of 2014 throughout all forms of advertising, not just mobile – is programmatic.

Programmatic advertising through ‘ad exchanges’ brings the ability to buy and sell advertising in an automated fashion in real-time, one ad impression at a time.

And it’s struck a real chord.

Publishers and brands alike are embracing programmatic advertising as the primary way business should be conducted. It enables real-time audience targeting at scale, a benefit that’s even more relevant for mobile because of its uniquely personal characteristics. Better targeting means improved ad relevancy, increasing the value for both consumers and advertisers, and delivering a higher price for publishers’ media space.

There are also significant cost efficiencies generated by outsourcing most of the heavy lifting to computer algorithms and reducing the dependency on expensive media buying/sales teams. Unlike the ‘secret sauce’ of ad networks, ad exchanges like Axonix can provide full transparency to both buyer and seller of the media space.

Such immense mobile growth in such a short space of time was always going to bring both challenges and opportunities for app developers and publishers. So now is the time to get equipped with the facts and best practices to capitalise on the opportunities presented by programmatic mobile advertising.

Whether an app or mobile content is free, freemium or paid-for, monetization of mobile ad space through ad exchanges allows publishers to optimise ad revenues whilst slashing costs.

Just as it is inevitable that consumers’ usage of mobile devices will continue to grow, so it is inevitable that marketing budgets will continue to follow those consumer eyeballs.

So get ahead of this disruption. Just as Facebook has rebuilt its entire ad business around mobile, it will be those publishers and app developers that harness the programmatic opportunity and offer a platform for more intelligent mobile advertising who will find themselves in the best stead to capture these budgets in the future.

Simon BirkenheadSimon Birkenhead is CEO of Axonix, a leading mobile ad exchange that helps mobile publishers to maximize their ad revenues. He has 20 years experience in digital marketing, mobile advertising and business management, the majority of which has been within high tech companies at the cutting edge of their industries.

He has launched three digital advertising start-ups, including Axonix, and was the first hire into Google’s Global Agencies Team in 2008, establishing this as the benchmark sales team for engagement at global exec level with the Big 6 advertising agency groups.

Simon is a mentor and Board advisor to a number of new technology companies and is a regular speaker at industry conferences, including Mobile World Congress, Festival of Media and Ad:Tech.

(Starbucks image: via Forbes; Facebook ads image: Facebook via Wired)

Sprinklr brings social media convergence to global brands

Paid Owned EarnedSince acquiring the Dachis Group earlier this year, social media SaaS vendor Sprinklr has pursued a clear path towards offering its clients a converged social media solution.

The convergence of paid, owned and earned social media would, Sprinklr says, provide significant benefits to global brands in four specific areas:

1. Maximize reach across paid, owned and earned social content
2. Integrate planning of content and campaigns across paid, owned and earned channels
3. Conduct automated optimization and amplification of organic content with paid budgets
4. Rapidly determine and close the loop on the ROI of digital advertising

Sprinklr released an integrated paid social media module in April and raised $40 million investment capital.

With news today of its acquisition of paid social solution TBG Digital, Sprinklr looks set to continue its onward march into the marketing departments of more global brands.

Factory Media talks Programmatic and Native Advertising

HTC One Skatepark

Guest author Chris Talintyre is Head of Audience Development & Activation at Factory Media and talks about the power of understanding huge audiences in real-time and the opportunities it’s bringing to leading brands targeting sports enthusiasts.

As consumers increasingly share content, it’s creating a huge amount of data to analyse giving us insight on not just our readers (think boarders, skaters, surfers, BMXers) but their friends, colleagues and contacts. We can better understand and connect with them through really engaging content, such as the recent work we did with HTC One and the creation of a free world-class skate park at Selfridges.

Given the prestige of the brands we work with, the services we offer must be as cutting-edge as possible. Programmatic platforms are growing rapidly and now account for 28% of the UK display ad market due to their engagement and target abilities. This is what encouraged us to further engage fans and stay ahead of the competition. To do that, we partnered with RadiumOne, experts in programmatic advertising, and created an ‘audience insight’ tool.

Based on RadiumOne technology, it helps us to understand our 22 million strong audience, while giving us extended insight on the global reach of our connected audience – a huge 250 million people – which is pretty informative! We partnered with RadiumOne as we were impressed with the level of sophistication and in-depth insight it could give us on our audience. Our clients come from a diverse range of sectors, and want to be aligned to an active ‘outdoorsy’ audience. Bringing clients into markets they may not naturally integrate into, is a valuable offering for us.

Working with RadiumOne we’ve been able to aggregate at scale, in real-time, sharing activity to build a map of interaction (by using their sharing widget and link shortener). We can track all sharing touch points not just for interactions but more general interactions across the web, for instance, what a user shares more broadly with their friends and contacts. This is in very granular detail and can be right down to the last item bought.

This is where native and programmatic cleverly works in tandem. By packaging up content on behalf of one of our sponsors, into an ad unit (such as a competition or social feed) we can create an engaging experience for the reader. The reach of this content can go much further by also sending it to our readers’ connected audience. We do this based on the preferences made and websites visited by them, so we can serve them with different forms of advertising. It’s engagement in context.

Ultimately, this host of technologies help magnify campaigns to reach more people. Our campaigns are visual, and the audience is vast so we need to tap into every degree of interest through this repertoire of technology. We saw the market opportunity for native and programmatic – now we’re offering an increasingly attractive proposition to leading brands. It was a no brainer for us and we haven’t looked back. We’re excited about winning new business and embracing the other opportunities it will afford us.

HTC One Skatepark Trade Media Video – hires a Skateboarding video by Factory Media

Factory Media is Europe’s largest specialist sports media owner. We focus on bike, board and outdoor sports and work with some of the most recognisable brands in the world such as Nike, British Airways, Jeep and O2.

Chris TalyntireChris Talintyre is a media marketing specialist with over 15 years industry experience. With skills ranging from digital marketing, video, direct marketing, subscriptions, through to social media. Currently working within action sports, developing off and online assets to effectively monetise them and extending brand reach.