Author: Jazmin Brooks

New multi-market research by MAGNA, a unit of IPG Mediabrands, also reveals that repurposed ads can be highly effective on TikTok with the right guardrails in place

New York, NY – August 10, 2022 – Platform benchmarks matter, especially when it comes to advertising on TikTok, according to a new study by MAGNA Media Trials, MAGNA’s industry-leading proprietary research offering. The study, “Understanding the Strengths of TikTok Ads,” breaking today, determined that both native TikTok ads (videos custom-created for the platform) and repurposed ads (ads that are made for broadcast or streaming services but are repurposed for TikTok) drive positive brand favorability (8%), purchase intent (6%) and search intent (7%). Meanwhile, the study also showed that these two ad types are perceived very differently by consumers and require unique considerations to amplify effectiveness.

When done right, each ad type drives lower funnel metrics for brands and positively impacts long term branding. The study found that native TikTok ads tracked +6% in purchase intent (beauty vertical) and +6% in search intent (entertainment vertical) and +7% in positive brand perceptions such as “interesting” and “fun” for both studied verticals.

On the other hand, repurposed ads have the potential to make or break brand KPIs. Repurposed ads deemed high quality in creative quality show significant gains in memorability (+37%), as well as brand perceptions such as “relevant” (+25%), and “creative” (+24%), among others. Brand marketers can learn about empowering creative ideas and discovering the latest best practices by leveraging TikTok’s Creative Center.

Native ads, which look and feel like TikTok content, proved to be particularly effective at casting a wide audience net, with potential new customers viewing the ads for 27% longer than average. Ultimately, native ads prove to be uniquely effective for new acquisition, driving intent to search for the brand (+7%).

“It’s great to see the IPG network leaning into building more creative best practices on TikTok. The findings from this study clearly show that building assets for TikTok is the most effective, but also shows that when you get repurposed ads right, they can also be effective.” Said Jorge Ruiz, Global Head of Marketing Science, at TikTok. “This study brings brand new guidance on how to think about Native vs Repurposed ads, and also shows us something that is new in our learning agenda: how TikTok can also drive Search Intent. I am looking forward to seeing the IPG network deploy these learnings into their creative best practices across our joint clients.”

“Understanding the Strengths of TikTok Ads” surveyed 4,447 regular TikTok users in a mobile online panel across two markets (US, UK), to assess ads that appeared in a controlled TikTok environment. The participants were randomly served either control ads (public service announcements) or ads in the beauty and entertainment sectors, after which rating their assigned brand on favorability, intent to purchase and search, as well as other brand perceptions.

The report also defined specific guardrails for both native and repurposed ads on TikTok. The findings include:

● Authenticity is Key for Native Ads: To optimize the power of TikTok native ads, brands should focus on promoting authenticity through their messaging. Inauthentic ads negatively impact the brand and are 19% less effective in driving purchase intent. When it comes to ad production, high production quality is not a necessity for native ads; instead, creators and brands should focus on embracing TikTok effects (e.g., transitions, music, voiceovers, etc.) endemic on the platform.

● New Customer Appeal: Not only did non-past brand purchasers watch native ads for a longer period of time, but these ads also prompted them to view these brands as being more creative and fun, regard them more favorably and be more likely to search them up later.” For example, there was an 8% increase in perceiving a brand as fun after seeing its native ad for non-purchasers vs. prior customers, who registered a 4% lift.

● Entertain and Story Tell with Repurposed: The strongest driver of impact for repurposed ads is creative storytelling. When good storytelling and creative quality are not leveraged, there is potential for significant loss in key metrics. As part of best practices, repurposed ads should be reformatted to fit the vertical orientation of the TikTok feed. Reformatting repurposed ads to vertical orientation increases purchase intent (+8%), as well as brand perceptions such as “relevant” (+7%) and “creative” (+3%).

“Marketers have a choice to either repurpose existing creative for TikTok or create custom, native ads. Our research found that both strategies can be effective, but best practices must be considered for brands to put their best foot forward on the platform,” said Kara Manatt, EVP, Managing Director Intelligence Solutions, at Magna Global. “When using native ads, authenticity is table stakes, so brands should thoughtfully choose creators and know that high production quality doesn’t necessarily equal authenticity. In turn, brands should lean-in to entertaining storytelling when identifying which ads should be repurposed for TikTok, making sure they alter video orientation to vertical for seamless integration.”

The full study may be found here.

About MAGNA
MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.

We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://magnaglobal.com/ and follow us on LinkedIn and Twitter.

About TikTok
TikTok is the leading destination for short-form mobile video. Our mission is to inspire creativity and bring joy. TikTok has global offices including Los Angeles, New York, London, Paris, Berlin, Dubai, Mumbai, Singapore, Jakarta, Seoul, and Tokyo.

Media Contact:
Zinnia Gill
Mediabrands
Vice President, Global Corporate Communications
(646) 965-4271

New York, NY -July 26, 2022 – MAGNA Media Trials, in collaboration with Amazon Ads and Mediabrands Content Studio, recently revealed a new study examining the strong potential of brand-funded entertainment. The Converging Worlds of Content + Commerce explores the emerging realm of brand-funded entertainment, and how this unique format can work in sync with various shopping options to optimize the consumer shopping experience. The study proves that content is supreme when it comes to TV show viewership, and that brands should not feel held back by their category when exploring the domain of brand-funded entertainment. In addition, the study provides a framework for the ideal path from TV content to purchase, effectively more seamlessly connecting content and commerce.

The Converging Worlds of Content + Commerce shows that although there is high interest in purchasing products seen in TV shows, the current trajectory on the path to purchase can cause friction for consumers. In turn, this friction leads to frustrated consumers and a gap on the path to purchase. Forward-thinking brands should take note of these pain points and begin to think about how they can innovate in a way that would solve for this, which would have both short- and long-term positive implications for both the brand and consumers.

Brand-funded entertainment is fertile ground for exploration. Forward-thinking brands looking to optimize the consumer shopping experience should reimagine how they can synthesize their content and commerce experiences in a way that not only delights consumers but battles the long-held belief among marketers that these categories must be treated as mutually exclusive. Brand-funded entertainment is one solution that brands can leverage to bridge content and commerce. This study shows that audiences are reacting positively to brand-funded entertainment, especially among younger generations (e.g., adult Gen Z, Millennials). This positive reaction, in turn, fuels momentum for intent and purchase signals. Brands interested in bridging content and commerce should take note and decide if the brand-funded entertainment format would work for them.

“It’s a huge opportunity. Brands that are winning with today’s audiences understand that consumer brands are media brands. The opportunity to connect with consumers through content is far greater than the incidence in which consumers buy or use most brands’ products and services. If they create content that is compelling and has a direct connection to sales, it is a win-win for both the brand and audience.” – Brendan Gaul, Global Chief Content Officer, Mediabrands

“We’re entering an exciting period where there are incredible opportunities for content and commerce to come together to create a seamless and enjoyable experience for customers. The sky really is the limit for our viewers and brands when you have a modern broadcaster like Amazon Freevee that reaches a wide audience.” — Ryan Pirozzi, co-head of content and programming at Amazon Freevee.

Key Findings from The Converging Worlds of Content + Commerce include:
• Content before commerce: Consumers do not differentiate if TV shows are created by a brand – what keeps them watching is the content itself. When asking consumers why they chose to watch brand-funded entertainment, 59% of respondents said they found the show ‘Fun to watch.’ Other top reasons why respondents chose to watch brand-funded entertainment was because they ‘Enjoyed the content’ (45%), and ‘Learned something new’ (34%).
• Viewers are accepting of brand-funded entertainment vs. traditional commercials: Overall, consumers prefer brand-funded entertainment over the traditional TV ad format, with a higher index among those who primarily stream video content (+10%), compared to traditional pay TV viewers. Given the positive response to the brand-funded entertainment format, this is a prime opportunity for brands to weave themselves into culture, inspire motivation, and drive purchase intent among their audience.
• Reimagining content to commerce experiences for customers: The existing path to purchase can cause friction for the consumer, as it relates to products seen on TV shows. Over half of the consumers surveyed said they felt frustration when trying to purchase a product seen in a TV show (52%). Frustration was especially felt among younger generations, such as adult Gen Z (+13%) and Millennials (+7%). This project has proven there is tremendous scope when it comes to reimagining the consumer experience, from brand-funded entertainment through to purchase.
The full study can be found here.

About MAGNA
MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.

We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://magnaglobal.com/ and follow us on LinkedIn and Twitter.

About Mediabrands Content Studio
Mediabrands Content Studio (MBCS) is part of IPG Mediabrands, the media and marketing solutions division of Interpublic Group (NYSE: IPG). MBCS is a media-fueled content practice designed to network and grow Mediabrands’ content and creative capabilities around the world. Strategically pairing new models of storytelling with Mediabrands’ global audience insights, MBCS develops and creates short – and long-form Original, Branded, Performance, and Campaign Content and provides a suite of entertainment solutions including media, talent, and production partnership development that powerfully grow brands. For more information about MBCS, please visit http://www.mbcsww.com/.

Media Contact:
Zinnia Gill
Mediabrands
VP, Global Corporate Communications
(646) 965-4271

-’The Person Behind the Data’ study by Ketch and IPG Mediabrands, MAGNA analyses consumer attitudes to how companies handle their data-

-More people “highly value” data privacy than other ethical issues we face today including sustainability and diversity

-Transparency the biggest factor for UK consumers-

 

London, UK. July 12 2022 – Ketch, the Trust by Design Platform for programmatic privacy and data stewardship and MAGNA, IPG Mediabrands global media investment and intelligence company, today announced the release of a groundbreaking new study designed to analyse consumer attitudes towards data privacy. ‘The Person Behind the Data’ has revealed that UK consumers will reward brands that have responsible data practices with 28% more purchase intent – the first time a link has been made between data practices and consumer purchasing behaviour.

The study, which surveyed 2,750 consumers, revealed that transparency was the most important factor for UK consumers. The lack of transparency, alongside control, were the main concerns for respondents – 58% don’t know how data is being used, and 75% don’t have control over their data.

58% of respondents said that the level of transparency has the largest impact on purchase intent, which far outweighed other factors including data minimisation (15%), data sharing practices (14%) and retention period (13%). For the first time, marketers can make a direct link between data privacy and sales.

This level of transparency also impacted consumer relationships with a brand. 53% of respondents would trust a brand more if their data is handled correctly and transparently. 38% would prefer the company over others, 33% would support the company more and 23% would tell others about the company.

“Our study has highlighted how consumers are becoming increasingly aware of how companies handle and use their data. For the first time, we are able to make a link between consumers and their purchase intent depending on how the brands they engage with handle their data” said Russell Howe, Vice President EMEA, Ketch. “All consumers are looking for is transparency – transparency with how their data is being used and how they can access it. Rather than treating data privacy as a box ticking exercise, forward thinking brands that make this a priority will reap the benefits long term.”

Erika Foster, Director, Standards & Investment Products EMEA at MAGNA said: “Responsible data practices should have been on brand radars even before the General Data Protection Regulation (GDPR) became enforceable in 2018 but, the findings of this survey provide statistical evidence of the positive impact good practices can have on consumer trust and ultimately purchase intent. We are proud to be leading efforts to support our clients, partners, and community in ensuring they meet their obligations though industry-leading programmes for ethical data sourcing, data protection impact assessments, privacy by design, and more.”

Headquartered in the US and with a European HQ in London, Ketch’s privacy solutions for privacy ops enable organisations to adapt programmatically to fast-changing regulations while managing risk and cutting operational and privacy engineering costs by 80%.

To view the report in full, visit The Person Behind the Data: Full UK Report.

‘The Person Behind the Data’ study surveyed 2750 respondents from a diverse representation across age, race/ethnicity, income, geographic location, and education. Ketch partnered with MAGNA, IPG Mediabrands global media investment and intelligence company to produce the study.

For more information about Ketch, visit www.ketch.com.

 

About Ketch

Ketch enables businesses to build trust with consumers and drive growth through data. Ketch’s Trust by Design platform is a coordinated set of applications, infrastructure, and APIs that collapse the cost and complexity of privacy operations and mobilises responsibly gathered data for deeper customer engagement and top-line growth. More information is available at www.ketch.com.

 

For further press information, please contact:

Andrew Durkin / Dan Walsh

e: [email protected]

m: 07887 998407

New Research by MAGNA, a unit of IPG Mediabrands, reveals 74% of consumers highly value their data privacy and will reward brands who are responsible data stewards with 23% increased purchase intent

New York, NY- July 12, 2022 –The way that companies handle personal data is a hot-button issue among consumers, according to a new study by MAGNA Media Trials, MAGNA’s industry-leading proprietary research offering, and Ketch, a privacy and data governance platform. The study, “The Person Behind the Data,” found increase in purchase intent of 23% for brands and companies with responsible data practices. Further, the study found that data privacy is a top priority to 74% of respondents.

The study explored the opinions of primary purchasers and decision makers about how companies handle their data. Privacy is as important a shared value for companies to focus on as environmental sustainability, and diversity and inclusion, with respondents ranking all three at highest levels of importance. Meanwhile, companies would do well to provide greater transparency and control for consumers, as 82% voiced concern about how their personal data is gathered and used.

“The findings highlight that offering meaningful transparency and greater choice over data collection and use is a commercial imperative. Creating a thoughtful, people-friendly experience for expressing those choices is a key component of trustworthy data practice that delivers to consumer expectation,” said Arielle Garcia, Chief Privacy Officer, at UM. “When people understand and appreciate the benefits of sharing their personal information with a company that they trust, they are more willing to participate in that exchange. In sum, these findings underscore the opportunity for companies that take a cross-functional approach to privacy and data initiatives, with stakeholders across legal, privacy, marketing, sales, IT, and customer experience.”

Other study findings include:

• Lack of Transparency and Control: 57% of respondents agreed that not knowing where data is going or how it is used was a problem, and 64% said they felt they did not have full control of their data.
• The Value Exchange: While 82% were concerned how data was gathered and used, 83% of respondents could see the value of sharing their data. Some of the benefits of sharing data include learning about new products (45%) having a personalized experience (45%) and receiving a benefit from the company (43%)
• Storage Wars: How long companies store their data impacted trust (40%) and purchase intent (52%) more so than the amount of data collected, level of transparency and data-sharing practices.
• Challenges by Industry: The study examined various industry verticals and found data collection practices impact purchase intent somewhat differently—Amount of data collected, by far, concerns telecom users at 55% while retail shoppers cited data sharing practices as their greatest concern at 44%.

 

“People see the value in data sharing but they are concerned about how companies are handling their personal information and think they should be doing more,” said Kara Manatt, EVP, Managing Director, Intelligence Solutions, at MAGNA. “It is an important issue that effects the bottom line and even long-term brand preference. Marketers spend billions of dollars and years building how people feel about their brands, and now, increasingly, data practices play a growing role in the brand preference and trust.”

“Brands are looking for the responsible path forward. What I love about this study is it confirms how important data privacy is to consumers in their relationship with brands and puts the numbers to that trust” said Jonathan Joseph, Head of Solutions & Marketing at Ketch. “Consumers care about data privacy, they understand the value exchange when sharing data, and will make purchase decisions based on how brands handle their data.”

“The Person Behind the Data,” surveyed a nationally representative sample of 2,751 people, in two (POV and conjoint) online surveys and incorporated the feedback from five, diversely populated focus groups.

The full study may be found here.

About MAGNA

MAGNA is the leading global media investment and intelligence company. Our trusted insights, proprietary trials offerings, industry-leading negotiation and unparalleled consultative solutions deliver an actionable marketplace advantage for our clients and subscribers.

We are a team of experts driven by results, integrity and inquisitiveness. We operate across five key competencies, supporting clients and cross-functional teams through partnership, education, accountability, connectivity and enablement. For more information, please visit our website: https://magnaglobal.com/ and follow us on LinkedIn and Twitter.

About Ketch

Ketch enables businesses to build trust with consumers and drive growth through data. Ketch’s Trust-by-Design Platform is a coordinated set of applications, infrastructure, and APIs that collapses the cost and complexity of privacy operations and mobilizes responsibly gathered data for deeper customer engagement and top-line growth. To learn more, visit ketch.com.

 

 

Media Contact:
Zinnia Gill
Mediabrands
Vice President, Global Corporate Communications
(646) 965-4271