The panel
Sarah Vizard, news editor, Marketing Week (moderator)
Laurent Faracci, vice-president of global marketing and digital excellence, Reckitt Benckiser
Adam Hancox, programmatic associate director, Starcom MediaVest Group
Joe Reid, managing director EMEA, Krux
Nick Reid, UK managing director, TubeMogul
The promise of mobile is the relationship it enables with consumers, allowing marketers to reach them wherever they are at any time. Yet, as Laurent Faracci, Reckitt Benckiser’s (RB) vice-president of global marketing and digital excellence, pointed out at a panel debate moderated by Marketing Week and sponsored by TubeMogul at Dmexco, this is a big mindset shift for many of the world’s biggest advertisers.
“We are an FMCG brand. The ‘C’ stands for consumers and yet our industry is one of the most removed from the consumer – everything we have done historically has been through layers and proxies. We have an ad agency that creates our creative, media agencies that buy media, distributors,” he explains.
“Mobile has become important because that’s where [the consumer] is and the big difference for us is to realise that you can be with the consumer whenever and wherever they are. That is a very big mindset shift for an industry that has played on scale and campaigns versus being in the consumer experience.”
Getting the creative right
One of the key challenges with mobile has been working out what creative works. Adam Hancox, programmatic associate director at Starcom MediaVest Group (SMG), says marketers are still taking their two-minute TV ad and putting it on mobile.
“A lot of the time it is easier to just put creative on mobile [than develop new creative] but you need to take into account the different need states, the different things that are happening on mobile,” he explains.
Faracci admits getting the right creative has been difficult, in part because agencies have struggled to present creative on a mobile device. “Just having that ability to see a creative on your mobile phone should be point zero of any agency. Yet very few have the capability.”
He also says that too many brands are focused on the wrong aspects of mobile, and are looking at narrative and storytelling rather than branding. “[On mobile] you have to be very effective in the first two seconds otherwise you lose people. It is a bit like old-school advertising from the 1960s – the hook is super-important.
“There are formats that can accommodate storytelling, but storytelling will never play unless you actually have the hook. That is difficult because sometimes it is misunderstood. Sometimes people just think we want to put our brand, logo and packaging in the first second.”
Understand consumers on mobile
Typically in digital, measurement has been based on cookies and click-throughs. Yet in a cross-screen world cookies do not work, meaning many brands are reluctant to move budgets because they are unsure what to measure or what success looks like.
Nick Reid, UK managing director at TubeMogul, says: “We are all lagging behind. We move from a world that is measured as a proxy of cookies. That is no longer possible. We need to look at a world where we can use people-based measurement and really start to understand what people are doing.”
Yet the measurement question will need to be solved before more brands move money into mobile. That will involve the industry coming together to come up with mobile standards both on formats and measurement.
Faracci says: “The only way we can [move budgets] is if we have proof that by moving money we will make the business bigger.”
Joe Reid, managing director for EMEA at data management platform Krux, has some recommendations for brands. He believes they first need to observe consumer behaviour so they can make budget decisions based on what consumers are doing and whether the current strategy is working.
“It is about understanding how consumers behave, engaging them in the way they want to be engaged, using data as a guide post; as opposed to what we continually do, which is to advertise, slightly modulate what we do and convince ourselves that is the right approach.”
Key to media buying
To successfully advertise in a mobile world, Krux’s Reid suggests brands need to “move away from the concept of mobile” and instead make decisions based upon the consumer segment,
then choose the channel and engagement.
RB’s Faracci agrees, and uses the example of Mucinex, a range of over-the-counter cough, chest and sinus remedies. Five years ago, it was a top 10 brand in the US but now it is number one. RB has achieved that growth by working with health publisher WebMD, using its data to tailor messages and using automation to give consumers the right product based on their symptoms.
“The data and programmatic approach helped build the business. Across the season, 40% of people get sick and we try to pitch to the 20% that can afford Mucinex because it’s a premium product,” he says. “As an industry, we have not elaborated the business model that goes behind that. But it makes sense, rather than blasting away, to actually be a bit more specific about what you do and how you do it. The issue is scale.”
RB has also separated out its media strategy and media-buying teams so that it is having “the right conversations” on where to advertise. Plus RB has its own internal trading desk, which accounts for about a third of its spend, with the other two-thirds going through agencies. Faracci believes this helps his team understand the industry and “be part of the ecosystem”.
RB is one of the few brands with an internal trading desk. Yet TubeMogul’s Reid says he is seeing more brands wanting control of the contract with tech suppliers to ensure it is transparent and then use their agency to execute the buying. He cites the example of SMG, Heineken and TubeMogul, which he describes as a “tri-party relationship where all three businesses are working together for the benefit of Heineken”.
SMG’s Hancox explains: “A lot of my job is spent talking to clients about tech and demand-side platforms, and making sure they understand why we make the decisions we make and use the technology we use. No one wants to work in a world where it is all behind closed doors and a client doesn’t know where their money is being spent. That comes out of a deeper relationship with tech partners.”
Efficiency versus effectiveness
Programmatic has previously been blamed for a drop in digital ad viewability, with ads appearing outside the visible area of the screen or served fraudulently to ‘bots’. Yet TubeMogul’s Reid says the challenge of programmatic is that it tends to be associated with real-time bidding (RTB). He claims that in the UK, 75% of the inventory TubeMogul buys is bought direct rather than in auctions, while figures from eMarketer show that across the industry direct and RTB spend will reach parity this year, with direct buys then set to account for a greater proportion of spend.
Krux’s Reid admits a lot of the market needs convincing that the person viewing an ad “is not a bot but a valuable entity”. That can be done using cross-device apps such as Facebook or Google, which can show that a cookie on a particular laptop is valuable and that therefore the mobile device using the same accounts is also valuable.
Faracci believes too many brands are overly focused on 100% viewability, at the expense of efficiency and return on investment (ROI). He says that for many advertisers, once a human viewer and 100% viewability have been priced in, that might not be the best deal. For example, a publisher could offer 70% human-viewable and non-fraudulent ad impressions for £10 per thousand, while for 100% the cost is £20.
“My purpose tends to be maximising the ROI on my spend,” he says. “You need to be comfortable with your ratio of efficiency and effectiveness.”
As for the future of mobile, Krux’s Reid believes the key is helping advertisers better understand mobile’s contribution and help them validate its ROI.
TubeMogul’s Reid concludes: “I would like to move away from the concept of mobile and understand how to reach audiences and, more importantly, make sure we are measuring it in the right way so we can start to drive and understand success. There is a lot of education needed on mobile but at some point we need to move away from this siloed approach.”
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