The Power of Connecting with What’s Happening

By Taylor Ward, Research Manager, Twitter and Kara Manatt, SVP Group Director, Magna Intelligence.

 

Download the full report

 

For as long as mass media has existed, brands have had a seat at the table during major cultural moments. As viewers, we’ve come to expect to see our favourite sporting events and concerts brought to us by brand sponsors. It is common practice for the ads we watch to feature celebrities and be in touch with the latest popular trends. More recently, we’ve even begun to see brands support and help drive social issues that are important to their audience. In 2019 Twitter and MAGNA interviewed 505 people in the UK for their research on “The Power of Connecting with What’s Happening,” where they looked at how brand involvement in culture impacts consumer perceptions and what it means for a brand to be culturally relevant.

Forty-one percent of those surveyed felt it is important for brands to be involved in social issues and movements, while 36% consider it important for brands to be involved in live events (such as the BRIT awards) and trends like organic and clean products. Young adults (A18-35) feel even more strongly, not only about culture in general, but also the importance of brand involvement in it. And all signs point to that sentiment growing over time.

For brands, aligning with and reflecting culture is key to staying relevant and top-of-mind; and for those that do it best, integrating with culture is truly part of their identity. However, what impact do these efforts have on their business objectives? As it turns out, a sizeable one. Almost one-fifth (18%) of a consumer’s purchase decision is based on a brand’s cultural involvement. This is good news for marketers who have little control in the short term over the other factors that drive purchase decisions—price and quality (55%) and brand perceptions (27%)—but who have direct control over how their messaging reflects culture.

Brands who have established themselves as more culturally relevant in the eyes of consumers also benefit in other ways. At a high level, consumers are simply more likely to identify with them; 2.5 times more likely, to be exact. It establishes a personal connection, which is no small feat for an advertiser. Culturally relevant brands also have the added perks of being seen as “authentic,” “innovative,” “inspiring,” and “thoughtful”–all attributes that can be difficult to convey in an ad. Instead, these attributes are implicitly communicated through actions and campaigns aimed at making those connections (e.g. giving back to local communities, sponsoring the Latin Grammy Awards, etc.).

So what are the best ways for brands to be involved in culture? In our current uncertain times, some brands have taken quick action to adjust and respond. Take Spotify, for example. While involvement with culture is nothing new for them–they have always supported events that are important to consumers–they’ve recently sought to play a positive role in the current global crisis. This includes conveying messages of support for key workers on the frontlines, and matching donations up to $10 million USD to provide COVID-19 relief for the music industry globally. These efforts align with the actions that consumers consider important—giving to the community (52%) and supporting social issues that are important to everyone (48%).

While “giving back” is at the top of the list for consumers, that’s not the only impactful option available to brands. They can get into consumers’ good graces by being inclusive, transparent, and of course “sponsoring cultural events”. This is good news for all brands. With so many options available, it means they have the ability to get involved in ways that are truly authentic. While the research shows that being a culturally relevant brand pays off in a myriad of ways, it is important to focus on the issues, trends, and events with which they genuinely align.

By asking consumers to rate the cultural relevance of brands across a range of industries, (including those that are often thought of as less “exciting”), we confirmed that they have the ability to stand out as relevant regardless of their category. Even more traditional verticals such as financial services have wide variation in cultural relevance from brand to brand. This demonstrates that every industry has room for competition and growth when it comes to cultural relevance.

While this research demonstrates that playing an active role in culture is critical to brands’ business objectives, COVID-19 has put the spotlight on something more personal; corporations no longer exist simply to drive sales. Now more than ever, it’s important for brands to stay engaged and be there for their customers. Making donations, giving thanks to frontline workers, and being a resource for information and support not only has a positive impact on-brand, but also helps serve a greater purpose.

For more recommendations on how your brand can effectively communicate during this difficult time, see Twitter’s blog post ”Brand Communications in a Time of Crisis.”

 

Unlike TV, Almost All Viewers Are Present for Digital Video Ads

But their attention starts to drop after two seconds

 

person's hands typing on a laptop
Almost 100% of people are present for digital display ads.

 

More people are staying indoors and staring at their screens, but are those people still looking at their screens when an ad shows up?

According to a study from Magna, around 99% of people are present or within a viewable distance of their screen for at least one second when a video ad appears. But viewer presence declines over time, dipping below 94% after six seconds.

Digital advertising is approximately a $150 billion marketplace, so “every percentage point counts,” said Kara Manatt, Magna Global’s svp, group director, intelligence solutions.

As part of a viewability study, Magna examined the digital consumption habits of over 100 U.S. participants to measure whether people were actually in front of their computers and mobile devices. Magna ran a similar study in December that found 29% of TV ads aired to an empty room.

While the vast majority of participants were physically present, there’s still no guarantee they were actually paying attention.

“We were focused on one piece of viewability, which does not equal attention,” said Manatt. “It’s really the ad’s job to have an impact and garner attention.”

Some ad formats have a better chance of garnering attention than others. Pre-roll video ads have a presence of 99.5%, while mid-roll comes in at 97.1%. Manatt said attention-related best practices are especially important for mid-roll ads.

“Otherwise [consumers] are going to run to the restroom or do exactly what they do with TV ads and run an in-the-house errand or do something else during the ad pod,” she said.

Among YouTube, Hulu, Facebook and what Magna categorized as “other websites,” presence dropped the most on Facebook’s video ads by 7% after two seconds.

The study showed that nearly 100% of people are present for mobile display ads.

Read the article on Adweek
Read the press release
Download the full report

 

NEW STUDY BY MAGNA AND IPG MEDIA LAB QUANTIFIES HOW OFTEN NON-FRAUDULENT DIGITAL AD IMPRESSIONS ARE WASTED BECAUSE NO ONE IS PRESENT

Dissecting ‘Opportunity to See’ Reveals That When Digital Ads Appear on Screen, A Person is Present 99.2% of the Time, But That Begins to Drop After 2+ Seconds

 

NEW YORK – May 11, 2020 – Thus far, the advertising industry has primarily focused on only one of the factors that determines “opportunity to see” digital ads – whether the ad actually appears on the screen. What is often not discussed is the other factor that offers a non-fraudulent digital ad an “opportunity to be seen” – a person is present when the ad is on screen. To date, human presence has often been overlooked by the industry because it is difficult to measure, and because ads are served to personal devices like mobile phones. Thus, it is presumed that someone is present when a digital ad is on screen. While it seems logical, no one has actually tested this conjecture until now.

 

This concept of human “presence” is a common concern for TV ads given the fact that people often leave the room during commercial breaks. In fact, MAGNA, IPG Media Lab, and TVision recently quantified how often an ad airs to an empty room, which is 29% of the time. As a follow-up, a new study by MAGNA and IPG Media Lab, “Dissecting ‘Opportunity to See,’” tested the presumption that a person is present when digital ads appear on the screen, in an effort to quantify how often digital ads appear without the person present.

 

Presence is defined as a person in the same visual range (for >=1 sec) of a digital ad that fully appears on the screen (the person may or may not be looking at the screen).  A major finding from the study is that while presence is very high at first (99.2%), it does decline.  For example, 94% of non-skippable video ads reached six or more seconds of human presence.

 

For the study, participants used in-home POV cameras to record their digital viewing experiences across PC and mobile devices in a natural environment over the course of two weeks. In each instance, the camera was mounted to the participant’s head in order to obtain a view of where they are in relation to their digital device, and a screen recorder was turned on their PC and mobile devices to capture what’s on the screen. The study included 102 participants, with 1,004 hours of video recorded and analyzed.

 

“It’s crucial for marketers to accurately understand both of the components that determine whether ads have the opportunity to be seen”, said Kara Manatt, SVP, Group Director, Intelligence Solutions, MAGNA Global. “While the industry has a strong understanding of ‘ads on screen’, we’ve yet to understand whether we should expect a person to always be present. This research finally quantifies this for us and provides invaluable insight into consumer behavior.”

 

Additional key findings include:

  • There was nearly total presence regardless of device and for both digital video (98.4%) and display (100%).
  • All video positions are not created equally; digital presence for pre-roll video sat at 99.5%, compared to mid-roll video at 97.1%.
  • Overall, 97.7% of digital video ads had presence for 2+ seconds.
  • Presence, however, declines over time indicating the continued need for the industry to understand how to best capture and hold consumer attention.

 

The full study can be found  here.  As mentioned earlier, the study was a follow up to research conducted by MAGNA and IPG Media Lab, in partnership with TVision, “Quantifying TV Viewability,” which revealed how often people are in the room when ads air and how this varies by daypart, position in ad pod and ad length.

Download the report

 

About MAGNA

MAGNA is the centralized IPG Mediabrands resource that develops intelligence, investment and innovation strategies for agency teams and clients. We utilize our insights, forecasts and strategic relationships to provide clients with a competitive marketplace advantage.

 

MAGNA harnesses the aggregate power of all IPG media investments to create leverage in the market, negotiate preferred pricing and secure premium inventory to drive maximum value for our clients. The MAGNA Investment and Innovation teams architect go-to-market investment strategies across all channels including linear television, print, digital and programmatic on behalf of IPG clients. The team focuses on the use of emerging media opportunities, as well as data and technology-enabled solutions to drive optimal client performance and business results.

 

MAGNA Intelligence has set the industry standard for more than 60 years by predicting the future of media value. The MAGNA Intelligence team produces more than 40 annual reports on audience trends, media spend and market demand as well as ad effectiveness.

 

About IPG Media Lab

Part of the Interpublic network, the IPG Media Lab identifies and researches innovations and trends that will change the media landscape and how brands engage with their audiences. Since 2006, the Lab has worked with our clients and with industry partners who can help them best adapt to disruptive change. Its expertise, resources and consulting services also help to inform the learnings, strategies and business outcomes of all Interpublic agencies. For more information, please visit www.ipglab.com or follow @ipglab.

 

# # #

 

Media Contact:

Zinnia Gill

IPG Mediabrands

Director, Global Corporate Communications

(646) 965-4271

zinnia.gill@mbww.com

 

IPG Units Find ‘HVAs’ Work Better Than Conventional Targeting, Rival Contextual’s Premiums

By JOE MANDESE.  Published by MEDIA POST on 8 April 2020.

 

“HVAs,” an increasingly popular new acronym being used by marketers and agencies to describe methods of targeting only “high value audiences” via various identity-based data schemes, appears to perform better than conventional methods of targeting media audiences, especially Madison Avenue’s stock-in-trade: the demographic. That’s the conclusion of a rigorous test conducted by IPG Mediabrands’ Magna and IPG Media Lab units.The test, which utilizes IPG’s proprietary research panel, as well as proprietary HVA segments created via its Kinesso platform (the data platform that leverages IPG’s Acxiom unit), conducted various controls to measure the effects of common advertising KPIs (key performance indicators) such as ad recall and purchase intent, and in every case it demonstrated that utilizing HVAs performed much better than demographics, contextual targeting, or even a mix of demographics and contextual targeting.

Contextual targeting utilizes the nature of the medium and/or the content that consumers are accessing as a proxy for their interests and intent as consumers of a brand’s products and or advertising messages, and according to Magna Senior Vice President-Group Director of Intelligence Solutions & Strategy Kara Manatt, the findings indicate that HVA targeting is more valuable than the premiums often paid for contextually-targeted audiences.

“I don’t thinks it has changed what we think about contextual,” she explains, noting, “In many cases, I would say contextual is worth a premium. But for most brands you cannot run your entire campaign on contextual, because there’s not enough inventory.”

In theory, utilizing HVAs enables brands and agencies to tap an unlimited array of media and content based on where those high value audiences index best.

Manatt emphasized that brands “should not spend a lot of money” using the method without also “doing a lot of testing and vetting it out.”

While IPG’s Kinesso has proprietary data and methods of identifying HVAs, the concept is available to any brand, agency and data management partners who can associate identity-based audiences with a brand’s highest value consumers.

NEW STUDY BY MAGNA AND IPG MEDIA LAB REVEALS THAT USING PEOPLE-BASED IDS TO REACH HIGH VALUE AUDIENCES YIELDS 50% HIGHER ROI

‘From Cookies to People’ Shares How the Identification of High Value Audiences (HVAs) Yields Precision That Cookies Can’t and Is Ultimately More Effective for Advertisers

NEW YORK – April 8, 2020 – From mass market, to household demos, to individual demo, and finally, to big data, the advertising industry has undoubtedly come a long way in how it reaches people. While traditional methods enabled us to reach large audiences based on reported behavior, a new study by MAGNA and IPG Media Lab reveals that new, advanced technologies, using people-based IDs, yield precision that cookies simply can’t. “From Cookies to People: Reaching High Value Audiences” demonstrates how the added precision with High Value Audiences (HVAs) can aid brands in their reach efforts with the hope of no wasted impressions. The study used Kinesso’s database in order to ethically source and identify HVAs. Other strategies were also tested in the study, such as demo, contextual, and demo + contextual.

 

More specifically, HVAs are defined as specific personas that are identified as having more lifetime value than a consumer reached via traditional methods, like demographics, and are highly customized based on variables such as category status and psychographics. These segments are created from a large data set with audience behavior tracked at the consumer level. Modeling is used to predict conversions from behaviors.

 

Brands can identify HVAs for a variety of different reasons, from reaching a particularly niche audience to converting consumers currently using a competitor product/service. There’s no one-size-fits-all for HVA strategies.

 

Key insights from the study include:

 

  • Identifying HVAs goes beyond simply zeroing in on those who are already going to buy; the tested HVAs were efficiently reaching potential new customers.

 

  • Ads were more memorable among tested HVAs and were especially effective at fostering a strong brand image. While contextual targeting drove brand resonance as well and is seen as being worth a premium, campaign reach can still be an issue.

 

  • HVAs were persuaded to purchase the brand, up +8% compared to +4% Demo, +4% Contextual and +6% Demo + Contextual. In addition, HVAs were particularly effective at driving purchase intent among in-market consumers, despite being least likely to have purchased the brand before.

 

  • The tested HVAs were particularly critical of ads not customized to them. However, when tested HVAs saw creative that they perceived as relevant, the ads were more effective, presenting a clear opportunity to customize creative for HVAs.

 

“Utilizing HVAs is one of the most precise and effective ways for advertisers to reach the best possible audiences on linear and digital video, and I believe it’s the future of our industry,” said Dani Benowitz, President, U.S., MAGNA. “We’re at a point in time where we’re able to save impressions from being wasted for advertisers, and in turn, are able to deliver content to viewers that they want to see since it is so targeted to their interests, which is a win-win for everyone.”

 

“We’ve been pleased to see interest around utilizing HVAs rise fourfold over the past three years as brands become more sophisticated in their marketing efforts,” said Michael Heberle, Chief Marketing Scientist, Kinesso. “It’s been a game changer for our clients, who have driven drastic improvements in business performance through better targeting.”

 

In order to identify HVAs, the study’s methodology involved recruiting YouTube users for participation from a nationally representative panel using Kinesso’s database of privacy-safe, best-in-class providers. Participants selected online video topics based on personal interests and those that were not interested were screened out to ensure a natural audience. Randomization was introduced into the test and control groups (Test= Brand Ad; Control = Public Service Announcement; 50% skippable ads; 50% non-skippable ads). Participants visited YouTube’s testing page where they selected and played the video content based on their interests, and relevant behavior was tracked. The targeting strategies used included HVA targeting, demo targeting, contextual targeting, and demo + contextual targeting.

 

Download the full report

 

 

About MAGNA

MAGNA is the centralized IPG Mediabrands resource that develops intelligence, investment and innovation strategies for agency teams and clients. We utilize our insights, forecasts and strategic relationships to provide clients with a competitive marketplace advantage.

 

MAGNA harnesses the aggregate power of all IPG media investments to create leverage in the market, negotiate preferred pricing and secure premium inventory to drive maximum value for our clients. The MAGNA Investment and Innovation teams architect go-to-market investment strategies across all channels including linear television, print, digital and programmatic on behalf of IPG clients. The team focuses on the use of emerging media opportunities, as well as data and technology-enabled solutions to drive optimal client performance and business results.

 

MAGNA Intelligence has set the industry standard for more than 60 years by predicting the future of media value. The MAGNA Intelligence team produces more than 40 annual reports on audience trends, media spend and market demand as well as ad effectiveness.

 

About IPG Media Lab

Part of the Interpublic network, the IPG Media Lab identifies and researches innovations and trends that will change the media landscape and how brands engage with their audiences. Since 2006, the Lab has worked with our clients and with industry partners who can help them best adapt to disruptive change. Its expertise, resources and consulting services also help to inform the learnings, strategies and business outcomes of all Interpublic agencies. For more information, please visit www.ipglab.com or follow @ipglab.

 

# # #

 

Media Contact:

Zinnia Gill

IPG Mediabrands

Director, Global Corporate Communications

(646) 965-4271

zinnia.gill@mbww.com