How marketers can unlock the creative potential of technology

The advertising world often sets up a false tension between creativity and performance, but The Invisible Enabler, a new study co-authored by WARC and Braze, demonstrates how art and science are natural partners in successful customer engagement – with technology as the catalyst that frees great ideas by removing complexity and barriers to effective execution.

Why it matters

Over the past decade, landmark research from the likes of Data2Decisions and Nielsen Catalina has shown that creativity is one of the primary drivers of advertising effectiveness. Considerable growth in martech spend and digital transformation plus shifts in third-party data regulations and consumer expectations post-pandemic have all impacted the demands on creativity. But, as that happens, brands are looking towards technology to help them better blend the art and science of effective marketing. That, in turn, is enabling these brands to create more personalised, memorable and resonant experiences for their customers – a huge competitive advantage and a surer route to long-term brand growth.

Takeaways

• Data inspires the creative

  Instead of constraining creativity, we’re beginning to see more examples where data has provided the seed of a truly distinctive creative idea.

• The memorable middle

  In a world where getting omnichannel right is paramount, brands can stoke their audiences’ passions, interests and curiosity to provide memorable purchase journeys that mix physical and digital experiences.

• Collapsing the funnel

  Many marketers are advancing their use of technology to bring brand building and performance marketing closer together so that they can build stronger DTC relationships with their customers.

• From gaming to the metaverse

  As marketers begin to experiment with AR and VR, brands can take many customer engagement and experience lessons from the world of gaming

The big idea

In the past, technology used to be at the service of and facilitate creative ideas. However, now, technology is increasingly becoming creativity’s hidden enabler and core to the creative idea itself. As third-party data regulations change and customers shift their expectations of brands and the experiences which they provide, those who operate most effectively at the magical intersection of technology, creativity and customer engagement, will have a significant competitive advantage.

The research draws on lessons from highly placed, award-winning case studies in the WARC Rankings – the ultimate benchmark in creativity, effectiveness and media excellence.

Anxious times: behavioural and commercial studies sketch impact of inflation

Studies from across the UK and US reveal grim perceptions of people’s future prospects as the pandemic’s long-term effects continue to weigh on young people, and perceptions of inflation hamper optimism.

Why it matters

Inflation is biting across the world – this has precipitated shifts in attitudes, behaviour, and spending. Some of the statistics point to desperation not only among the poorest but signs that a majority are feeling the pinch.

Find all of WARC’s reports and analysis on the economic situation at our hub on WARC Strategy.

Youth in crisis

A study from the Prince’s Trust charity in the UK looks at the ‘Class of Covid’ and finds that not only has the pandemic caused profound harm to young people’s prospects, but that the economic and political turbulence that has followed now weighs on them daily. Based on 2,002 respondents aged 16-25:

• 49% feel anxious about the future on a daily basis
• 51% feel their aspirations for the future are lower as a result of global events since 2020
• 51% agree that economic trouble make them worry for job security
• 58% worry the cost of living crisis will prevent them from reaching their goals
• 35% feel their life is spiralling out of control

But perhaps the most worrying statistic is that over a third (35%) say their salary no longer covers their rent or mortgage.

A deeper set of problems

This chimes with the broader impact of the cost of living crisis on society, according to research from the Centre for Social Justice think tank shared at the Conservative Conference this week.

It reports that some of the lowest income households end up paying a “poverty premium” – think pre-payment gas and electric metres that cost far more than direct debit systems – and that these people are often far more likely than the rest of society to look to gambling so they can make extra money and slightly more likely to drink alcohol in order to cope.

Across the pond

Meanwhile, in the US, consumer research firm dunnhumby finds that Americans believe food inflation to be almost 10 points higher than it is in reality. Yet, this reflects a deeper issue: that people are living very precariously, even desperately.

• 64% of US consumers in the study would have difficulty covering an unexpected expense of $400 or more (up 4 percentage points since May).
• Elsewhere, hunger is increasing: 18% report not getting enough to eat, while 31% report skipping or reducing meals.

From a commercial lens, dunnhumby’s research shows a slight increase in dollar store use (up two points since May to 19.9%).

Trading down is now mainstream. 83% of respondents say they are looking for cheaper alternatives in at least one category. Top three trade-down categories are packaged food (53%), common household products (52%), and frozen food (42%).

Sourced from the Prince’s Trust, dunnhumby, Lisa O’Carroll (The Guardian)

Speculation grows on Foxtel's Binge joining ad streaming party

With interest in subscription streaming services adding ad-funded tiers, Foxtel Media chief Mark Frain has played down the possibility of putting ads on its as-yet ad free entertainment streaming service, Binge, but did not rule out the possibility – should it go ahead, it would be an Australian continuation of a growing global trend.

Why it matters

First party data: signed-in, paying audiences already mean much higher quality data of the sort advertisers will need to leverage if they are to move past the cookie. In this time of need, some streaming services have spotted an opportunity to do as premium publishers like the Financial Times or the New York Times do and blend subscription and advertising revenue streams.

Reports surrounding Netflix’s much anticipated (and probably very lucrative) ad tier debut suggest that a strong minority of people, at least, would watch ads in return for a cheaper subscription. Like Foxtel’s Binge, Netflix once touted its ad-free service as a benefit. Are we heading for a new golden era of cinematic ad creative? We’ll soon see.

What’s going on

This is according to an interview that Frain has given to the Australian publication Mi3, in which the pivotal quote was Foxtel was “confident of bringing new sources of inventory” to market.

It follows excited chatter and rumours that December would see a test of the service with a small pool of users.

In the interview, he noted that even with current brand-friendly offerings such as its subscription sports services, the company’s video revenues are growing way ahead of the market, but that there was yet plenty of growth to come as digital video ad revenues catch up to digital video audiences.

Sourced from Mi3, WARC, LA Times. [Image: Binge]