The Feed

More than half of marketing emails threatened by iOS 15

Apple's popularity as an email service and the company's push into data privacy means the ability of advertisers to understand the performance of their email marketing campaigns is being challenged, according to data from email marketing company Litmus.

Why it matters

As part of the recently launched iOS 15, Apple says the Mail Privacy Protection feature "hides your IP address, so senders can’t link it to your other online activity or determine your location. And it prevents senders from seeing if and when you’ve opened their email".

This comes at a time when email marketing has grown in importance for many brands – it can be a cost-efficient way of enhancing first-party data and can allow personalised messaging in the absence of third-party data.

Takeaways

• More than half of all emails opened are at risk - the iPhone Mail app is the market leader and is responsible for 40.3% of all email opens, with the Apple Mail app on Mac devices third (11.3%) and the iPad Mail app seventh (1.4%).
• Early data from email sender SparkPost suggests that "about 97%" of iOS 15 users have approved Mail Privacy Protection.

Sourced from Litmus, WARC Data

Cadbury’s Donating Words takes APG Creative Strategy Grand Prix

British chocolate brand Cadbury, in its Grand Prix winning case study, explains how a new platform restored the brand’s historically held principles to reverse market share, penetration, and grow sales ahead of the category.

The winner

Cadbury and VCCP London’s case study, which WARC members can read here, explains how the brand had attempted to hold onto the ‘glass and a half of joy’ position that had animated 2007’s Gorilla. But by 2017, the world – and the confectionery category – was in darker times.

With loneliness a pervasive ill affecting the UK’s large elderly population, the brand’s distinctive asset was repurposed to a much-needed idea of generosity in the form of ‘a glass and a half in everyone’, sparking creative work that people could participate with easily but meaningfully.

This platform launched three years of successful work that drove core-brand-driven market share and revenue growth ahead of the category.

A strong field

Cadbury and VCCP stood out in an exceptional field of Gold winners that included 2020 Grand Prix winning brand Libresse/Bodyform. Golds also went to Unilever, Diageo, FormulaE, KFC and McDonald’s.

The awards were announced at an event in central London on Thursday evening.

WARC subscribers can access all of the Gold, Silver, and Bronze award winners as well as the Grand Prix-winning case study.

Sourced from the APG, WARC

Poor briefs erode marketing budgets

As much as one third of marketing budgets could be wasted due to poor briefing, new research suggests.

That’s according to the BetterBriefs project, the first-ever global study (based on the opinions of 1,700 marketeers and agency staff from over 70 countries) into the shortcomings of marketing briefs, revealed at the IPA’s EffWorks Global event.

Why it matters

Respondents estimated that a third of the marketing budget goes to waste due to poor briefs and misdirected work. Both marketers (69%) and agencies (73%) agree that rebriefs happen too often, leading to loss of time, money and fuelling frustration on both sides.

Key findings 

Marketers and agencies are on different planets

• It’s not a new finding but the differences remain stark: marketers (80%) think they write good briefs, but only 10% of creative agencies agree. 
• Over three quarters of marketers (78%) think the briefs they write provide clear strategic direction, but only 5% of creative agencies agree.
• Marketers (83%) believe that the briefs they write contain clear and concise language, but only 7% of agencies agree.

Briefs are essential but neglected 

• Both marketers (89%) and agencies (86%) agree that it’s challenging to produce good creative work without a good marketing brief. But almost all marketers (90%) and agencies (92%) also agree that the brief is one of the most valuable and paradoxically most neglected tools marketers have to create good work.

The co-founders of the BetterBriefs project, Matt Davies and Pieter-Paul von Weiler, say its aim is “to jumpstart more informed conversations about briefs. They should direct and inspire, not confuse and frustrate”.

Sourced from IPA, BetterBriefs

Indian retailers demand Amazon probe

A group representing millions of India’s brick-and-mortar retailers has demanded the Indian government launch an investigation into Amazon, following a report on the e-commerce giant’s alleged unethical practices in the country.

Background

Amazon India’s private-brands team is accused of using internal data to identify products to copy, with search results then manipulated to ensure the Amazon versions appear at or near the top of the search results. According to Reuters, internal documents show that this way of operating was a formal strategy in India, reviewed by at least two senior executives. “We believe these claims are factually incorrect and unsubstantiated,” Amazon said in a statement.

The fallout 

Now the Confederation of All India Traders, which claims to represent 80 million retail stores, and the Alliance of Digital India Foundation, a non-profit representing some of the country’s biggest startups, have urged the government to take action. 

Why it matters

The Alliance referred to “Amazon’s predatory playbook of copying, rigging and killing Indian brands” – an emotive description that may strike a chord with many Indian consumers. Already there have been calls to boycott the platform.

Sourced from Reuters, Economic Times

Sport and news podcasts attract the most advertising spend

Podcasts in the sport and news categories attract the most programmatic advertising investment, according to data from audio publishing platform Omny Studio.

Why it matters

The United States alone accounts for almost 60% of all downloads and is still growing quickly. This may represent a missed opportunity for some advertisers, though, as an audio investment gap does appear to exist.

Podcast audiences are also rising rapidly across the world. For example, downloads rose by 552% in Turkey, by 524% in India and by 388% in Mexico.

Takeaways

• Sport podcasts lead the pack, taking a 17% share of advertising revenue in the 12 months to September 2021.
• News & politics follows behind with 13%, while comedy also stands out – comedy (music & audio) takes a 10% share while comedy events is at 9%.

Sourced from Omny Studio, WARC Data

Five airlines sign up to "Nespresso model"

A business model taken from the fast moving consumer goods (FMCG) sector could help cut aviation carbon emissions within a few years, if the ambitions of a Los Angeles start-up are realised. 

Universal Hydrogen, the company leading the fight to decarbonise aviation through the adoption of hydrogen as a fuel, is developing conversion kits that would see current passenger plane engines replaced with a hydrogen fuel cell and electric motor, the Financial Times reports. The fuel cells would be sold on subscription.

Why it matters

Apart from the obvious boost to sustainable travel and the marketing implications for the brands involved, this demonstrates how businesses can find inspiration outside their categories. 

Takeaways

• Universal Hydrogen has attracted investment from some big names, including Tencent, GE Aviation and JetBlue.
• Airlines signing deals include Icelandair, Ravn Alaska, Air Nostrum (Spain) and ASL Aviation (Ireland).
• The aim is for the first planes to be operational with the new engines by 2025.
• Once the tech is proven, attention will turn to Boeing and Airbus and their single-aisle aircraft.
• The “ecosystem approach” will enable the use of existing airport infrastructure.

Key quote

“It’s the Nespresso coffee model: we sell the coffee maker for as cheaply as possible, and then we monetise the capsule supply for the life of that product” – Paul Eremenko, co-founder and CEO, Universal Hydrogen.

Convergence requires redefining TV

Nine in ten UK media buyers agree that “TV” is now defined as linear and streaming platforms, and a similar proportion think TV should be sold on impressions, a new report finds.

Why it matters

The State of Converged TV: A Look at Global Trends & Adoption, from measurement business TVSquared, makes the case for moving past legacy models and toward a more holistic, flexible converged TV marketplace.

Key UK findings 

• While 89% of UK respondents indicated that achieving cross-platform TV measurement and attribution is a top priority for adopting converged TV strategies, 47% also stated its accuracy was also a top challenge.
• 94% agree TV needs to be more flexible and easier to transact across linear and streaming
• A third currently allocate between 16-25% of their total TV budget to CTV.
• 45% currently advertise across three-to-five platforms, with 35% indicating they will advertise on six or more in 2022.
• The top three data sources being used by UK marketers to inform converged TV campaigns are online data for attribution (56%), first-party customer data (46%) and offline data for attribution (36%).

Key quote

“There is a shared passion, across the industry, to support converged TV strategies with measurement innovation and more flexible, transparent practices that empower advertisers to reach their total TV audience” – Calum Smeaton, CEO, TVSquared.

Sourced from TVSquared 

Brits see streaming TV as better quality and value for money than alternatives

More than half of UK consumers (53%) say streaming services provide more entertaining content than that found on traditional TV counterparts, while six in ten (59%) think they offer better value for money than cable or satellite TV.

Why it matters

Twenty-nine percent of all UK consumers say they’re likely to spend more time watching paid video streaming services a year from now, but the figure is much higher (40%) for Gen Z and Millennials.

That is according to The State of Video & Connected TV, a global report from tech company Criteo, which highlights how the pandemic has altered viewing habits: 62% of UK respondents said they watch more paid streaming services than before the start of COVID-19 and the main reason for doing so is simply because they are at home more.

Takeaways

• The benefits highlighted by the services themselves are secondary – “anytime, anywhere” access (42%) and original content (41%). One in three UK consumers spends more than £50 per month on a cable or satellite subscription, while only one in eight spends the same amount on streaming services.

• Netflix is the most popular streaming platform (used by 72%), followed by iPlayer (68%), YouTube and ITV Hub (47% each) and Amazon Prime Video (45%).

• Almost half (47%) prefer video ads because they’re entertaining and engaging, but 40% don’t want the same one shown too many times; 37% want to see useful information and relevant information.

• Two in five say video streaming services have influenced their purchasing decisions in the last 12 months.

Sourced from Criteo

Instacart advertisers become more efficient as ROAS rises 12%

Brands are spending more on Instacart advertising and are achieving greater advertising efficiency, according to the latest data from e-commerce advertising and intelligence company, and WARC sister company, Perpetua.

Why it matters

However, Perpetua anticipates Q4 to see a rise in the cost-per-click and a decrease in ROAS as advertisers execute a more aggressive strategy in the holiday season.

While competition is intensifying, larger basket sizes have created an opportunity for brands to promote increased purchase quantity. However, as vaccination rates differ across the United States, hybrid buying is the new standard for grocery shoppers and brands will need to recognise this.

Takeaways

• Attributed advertising spend on Instacart rose 30% in Q3 2021 while the average return on advertising spend (ROAS) rose by 12% to reach $2.70.
• With ROAS growing and the cost-per-acquisition falling, advertisers have seen greater efficiency with their investment.

Sourced from Perpetua, WARC Data

Commerce and video streaming are most important trends for APAC marketers

Mobile commerce and video streaming are having the biggest impact on the marketing industry in Asia Pacific, according to a survey of marketers in a new report from WARC and the Mobile Marketing Association (MMA).

Why it matters

COVID-19 caused widespread disruption to consumer activity and brands have had to take notice – 86% of marketers say they have improved their m-commerce capabilities as a result of the growth of e-commerce.

However, this varies across the region – while 91% of marketers in Vietnam say their m-commerce capabilities have improved, a smaller share in India (82%) and Indonesia (79%) say the same.

Takeaways

• Three-fifths (61%) of marketers said that commerce, including mobile payments and m-commerce, is a consumer behaviour that has the most significance for the marketing industry.
• Watching and streaming video via OTT devices follows in second at one-half (47%).

WARC, with the Mobile Marketing Association, has assessed how advertisers and agencies are using, and planning to use, mobile in their marketing activities. WARC Data clients can access four reports exploring the latest trends in Asia Pacific, India, Indonesia and Vietnam.

Sourced from WARC, Mobile Marketing Association

Direct mail campaigns more likely to successfully use personalisation

Direct mail campaigns are more likely to be informative, educational and personalised than the average UK advertising campaign, according to a WARC and Royal Mail Marketreach analysis of case studies in WARC's database of successful campaigns. A free sample of the report is available here.

Why it matters

Lockdowns as a result of COVID-19 have severely disrupted working patterns: hybrid working arrangements, particularly for high-net-worth consumers, are likely to be more common in future. This increases the likelihood of mail being read and engaged with, as consumers spend more time in the home where their mail is delivered.

The research also found that mail can act as a real differentiator in marketing campaigns, its physical presence in people’s homes can combine with digital integration to help drive clear growth for brands that invest.

Takeaways

• Two-thirds (65%) of effective case studies that use direct mail as the lead media have 'inform' or 'educate' as a creative strategy, compared to just 42% among all UK case studies.
• Direct mail also over-indexes for personalisation as a creative strategy, at 24% compared to just 12% for the average.

WARC, in association with Royal Mail Marketreach, has taken a fresh look at what direct mail can offer in today’s world, in the context of changing consumer behaviours post-COVID and technology innovations. WARC clients can read the full report here. A free sample of the report is available here.

Sourced from WARC, Royal Mail Marketreach

US festive shoppers are starting early

Three quarters of US shoppers expect to start their festive shopping earlier than they normally would, amid concerns about product availability and price rises, research suggests.

Why it matters

The impact of COVID-19 on shopper behaviour and supply chains means this year’s festive season will be unlike previous years. Brands and retailers need to adapt to ensure availability over a longer period and have messaging ready to respond to any change in circumstances. 

Key stats

• The annual Holiday Shopping Intentions Survey from the International Council of Shopping Centers (conducted in late September among a representative sample of 1,005 respondents) notes that, even with an expected 13% increase in e-commerce, a majority (85%) of shoppers plan to spend money in physical stores.
• Top reasons for starting earlier: to ensure products are available (45%); to take advantage of early deals (42%); and to ensure products are delivered on time (42%).
• Nearly half of consumers say the holiday season will encourage them to make more trips to physical stores and 38% plan their shopping around specific promotional events.
• Shopping in-store is driven by the ability to: see, touch and try on merchandise (37%); get the item immediately (34%); and browse for new gift ideas (30%).

• Separately, App Annie estimates shoppers in the US will spend over 900 million hours in shopping apps in Q4 2021 – a 20% increase in time spent year over year.

Sourced from ICSC, App Annie

LVMH’s strong brands and diverse offer drive growth streak amid global headwinds

The world’s largest luxury firm, LVMH, has beaten revenue growth expectations and defied warnings of negative impacts from China’s “common prosperity” policy – the key appears to be the French giant’s rock solid core brands which continue to post strong organic growth, in addition to market-share-seeking offers for a range of budgets.

Why it matters

LVMH Moët Hennessy Louis Vuitton is a vast company that makes everything from luxury handbags, to jewellery, to bespoke yachts, to hotels, and even a newspaper. Such a broad portfolio of brands has left it exposed to global headwinds: its travel businesses have suffered under mobility restrictions; its luxury businesses have faced a renewed volley of Chinese policy tackling inequality.

Despite these difficulties, the company’s ability to grow core brands – fashion and leather goods – by 38% versus the first nine months of 2019 means it has managed to erase pandemic-induced declines.

A strong quarter

The firm’s Q3 results, announced this week, beat forecasts of €15 billion in quarterly revenue by half a billion euros, and saw organic sales up 11% overall versus Q3 2019.

• Fashion and leather goods, driver of three quarters of the company’s operating profits – the ‘LV’ in LVMH – grew by 24% year-on-year, though the lift in growth from global recovery appears to be slowing.
• Asia (ex. Japan) was the largest region for the company, bringing in 36% of sales. The US, which has also continued to show strong demand,  accounts for 25% of sales.

Expected risks

Analysts had expected China’s “common prosperity” policies, designed to narrow the country’s wealth gap, to buffet luxury groups, a sector that according to the BBC brings in half of its total revenues from China’s fast-growing wealth. However, LVMH says it has felt no effect on its business, despite investor jitters knocking value off the company since the summer.

While CFO Jean Jacques Guiony notes that the potential impact is not yet clear, he emphasises, in comments reported by the FT, that the “bulk of our customers in China are not billionaires but the affluent and upper middle classes”. 

Analysts believe a combination of strong brands like Louis Vuitton and products available to a variety of budgets should help the company resist any impact.

Sourced from FT, Business of Fashion, BBC

Taking stock of the pandemic

The reduced mobility brought about by pandemic lockdowns has driven structural shifts, as consumers have switched to e-commerce and altered media consumption habits; a new study from Enders Analysis (Living with the pandemic in October 2021) finds most people in the UK aren’t expecting a return to normal any time soon.

Key findings

• The pandemic has created a two-tier recovery, divided between large cities which have retained income levels and accumulated savings, but have ongoing reduced mobility, and smaller cities and rural areas, which have seen a bounce back in mobility. The part reversal of WFH will, however, perk up mobility in city centres in the coming year.

• Those households able to leverage WFH for all days of the week are saving on average 25-30% of their weekly disposable income on expenditure on transportation and out of home service activities.

• There was a structural increase in the online channel, contributing 25.5% of retail sales (excluding fuels), in both July and August 2021 (up from 18.1% in August 2019) thanks to a doubling of food and drink sales. This could be a new baseline for the online channel, and thus associated marketing mechanisms.

• At 96%, engagement with mail was higher than ever as more people have worked from home. But the gulf between the media touchpoints of the “young” (25-34) and those of “older” (50+) audiences, centred on live broadcast TV, has never been larger.

Key quote

“The UK’s journey through the pandemic continues to wreak profound changes to the way people live, work, shop and consume media, with the majority of consumers expecting the old normal to be postponed for at least six months to a year, perhaps never to return” – Janet Hull, Director of Marketing Strategy, IPA.

Sourced from Enders Analysis, IPA