Baerads: The FTC Takes a Big Step Into the Native Advertisi...

Baerads: The FTC Takes a Big Step Into the Native Advertisi...: Two years ago,  we first discussed the idea of native advertising , a form of promotion that blends an advertiser’s message with...

The FTC Takes a Big Step Into the Native Advertising Controversy.(knowthis.com).

Two years ago, we first discussed the idea of native advertising, a form of promotion that blends an advertiser’s message with a website’s content. At that time, we noted how U.S. regulators, specifically the Federal Trade Commission (FTC), were raising a cautionary flag regarding this evolving method of Internet advertising. Their concern rest with whether certain forms of so-called sponsored-content were easily identified as being messages provided by an advertiser as opposed to viewed as being part of material created by a website. For example, what appears to be an article on exercise appearing on a newspaper website may actually be written by an active sportswear company, though the layout of the articles may give it the appearance of being written by the newspaper.

 A few months after our first posting on native advertising, we saw the FTC’s level of concern rise much higher. In particular, the FTC was even more vocal about the need for advertisers to be clearly identified. The fact the FTC was concerned sent signals to Internet marketers that unless native advertising was more transparent, they would act. Apparently the FTC has seen enough, and they have now acted.

According to this New York Times story, the FTC has issued guidelines for how native advertising can be done. As expected, their most notable suggestion tells websites to identify clearly advertisers, especially of sponsored-content. In fact, to drive home their point regarding the blending advertising and content, the FTC released Native Advertising: A Guide for Business, which says what information needs to be disclosed and where in the content it needs to be placed.

As expected, websites and advertisers are not happy. They believe native ads are effective and benefit visitors to their site. And, as we noted a few months ago, websites also see native advertising as a promotional method to combat ad-blocking software. Certainly, we have not heard the last of this issue as it promises to be headline news again in 2016.

Patrick Abboud

Baerads

Baerads: Important Marketing Trends of 2015 That Will Likel...

Baerads: Important Marketing Trends of 2015 That Will Likel...: As we did in the final days of 2014 , we again take a look back over this year’s posts we tagged as  Marketing Trends  and suggest w...

Important Marketing Trends of 2015 That Will Likely Be Big News in 2016.(knowthis.com).

As we did in the final days of 2014, we again take a look back over this year’s posts we tagged as Marketing Trends and suggest what topics may continue to be important in 2016. Here are a few of our favorite trends and some of the comments we made about these.

• The Impact of Ad Blockers – Likely the most significant trend of 2015 is the emergence of ad blocking technology. The effectiveness of ad blockers has raised the anxiety levels for content websites, advertising serving companies and advertisers, who need ads to be displayed to generate revenue. As more people learn about ad blocking, marketers are bracing for even greater impact on revenue. As we noted in September, people are now learning about ad blockers from highly credible sources: “Apple’s release of iOS 9, for iPhones and iPads, permits the installation of ad-blocking apps, something Apple did not previously allow. As expected, within a few hours of the iOS 9 release, third-party ad-blocking apps climbed to the top of the iTunes download list.”
• Innovations in Online Retailing – In 2015 saw several innovations that are likely to continue to impact online retailing. In June, we saw how Sam’s Club’s technology is making it easier for customers, who place grocery orders online, to communicate with their local warehouse store to let them know when they will pick up their order. In May, we examined Amazon’s device that allows customers to speak their order. And back in February, we discussed how retailers are using advanced search software that is better at predicting what customers really want. Based on a story from Internet Retailer, we noted:“… the new technology often presents searchers with what the software predicts to be the best match to a search query. Thus, in some cases, instead of seeing multiple pages of products, the searcher may only be shown a single product that the search technology estimates is the best match for the query the customer entered.”
• Careers in Marketing Analytics - The use of analytics to aid marketing decisions is in full swing in large marketing organizations. It is also becoming necessary for smaller companies to understand analytics, particularly for gauging the success of certain Internet marketing programs, such as remarketing. In March, we saw the increased use of analytics is leading to a shortage of qualified workers. As noted in an Advertising Agestory there is: “… strong evidence that those who possess strong analytical skills will be in demand. It points to a research company's estimate suggesting that by 2018 demand will far outpace supply, leading to a shortage of skilled analysts.”
• Customers Response to Data Collection – While marketers love collecting, analyzing and making marketing decisions with the information they collect, customers are increasingly resistant to giving it away. Issues of customers’ privacy rights could make it more challenging to gather information unless marketers become more sensitive to customer needs. For instance, back in April we discussed a Harvard Business Reviewstory that says: “… companies may find their customers are much more accepting of the data that is being collected if the marketer is open about their collection activity, especially for data customers feel is the most value to them. The story suggests the value-of-data question is cultural and may depend on the country in which customers reside.”
• Pricing Becomes More Responsive – The holy grail of marketing is figuring out what customers want and then selling it to them at a price point that will yield the greatest revenue. However, this price point may vary depending on customer demand. This has led many to seek so-called “dynamic pricing” options, where prices are adjustable given market demand. While dynamic pricing has been around for some time in the airline and hospitality fields, it is now expanding into new areas. As we saw in a Washington Poststory from April, one area using dynamic pricing is the ride-sharing market, where Uber is at the forefront for adjusting price based on demand: “Their so-called "surge pricing" approach is powered by sophisticated computer programming that then determines what price to charge its customers.”

These are just a few interesting trends from 2015. Expect these to continue to draw marketers’ attention in 2016.

From everyone at KnowThis.com - Happy New Year

Patrick Abboud

Baerads

Baerads: Exaggerating Product Benefits Can Find Marketers i...

Baerads: Exaggerating Product Benefits Can Find Marketers i...: An essential element of a marketing communications campaign is the need to craft a message that can capture customers’ attention...

Exaggerating Product Benefits Can Find Marketers in Hot Water.(Knowthis.com).

An essential element of a marketing communications campaign is the need to craft a message that can capture customers’ attention. This applies to all forms of communication, including messages contained in advertisements, what salespeople say when meeting with potential buyers, and even how public relations may post messages on social media.

One method for crafting a message that has been used for many years is the Features-Advantages-Benefits approach (i.e., FAB). Features are the key components of a product. For example, for a razor blade manufacturer, it may include a special type of metal blades. Advantages represent what a specific feature does. For instance, staying with the razor blade example, the advantage may be that the metal blades cut hair very easily. Finally, the features are what the marketer believes the customer ultimately obtains when using the product.  In our razor blade example, the message may state that users of the product will look better when in the presence of others. Thus, combining all three components of the FAB, the razor blade manufacturer may say: “Our finely manufactured blades (feature) will give you a remarkably close shave (advantage) that will make you look great (benefit) when you meet that special someone.”

While the FAB approach is a hallmark of an effective marketing message, the “B” part of this often creates problems. Some marketers are tempted to stretch the extent of their product’s benefits and make claims that may not be 100% accurate. In most cases, embellishing the benefits a product offers is not a big deal. For instance, a company selling windshield wipers may make the claim their product “will make you feel really safe when the weather is bad.”Such a claim is relatively innocuous and will not be viewed as being potentially misleading. However, if the company says their wiper blades “are by far the best blades you can buy and will protect you like no other blade,” than that just may draw attention. And that attention may come from government regulators, who may demand the company prove their claim. Those who face scrutiny by regulators for their benefit statements can also face major problems if they cannot prove it.

An example of a “prove it” that did not go so well for a marketer can be seen in this story from the Washington Post. It reports on a $2 million fine imposed by the Federal Trade Commissionon Lumosity, the makers of a so-called brain training product. According to the story, the FTClevied the fine because Lumosity mislead customers with its statements that their product improves brain function, including helping “delay cognitive impairment associated with age.”  According to the FTC such claims were not supported by legitimate research.

So the lesson here is if you want to claim your product provides exceptional benefits, then you better be prepared to back this up with good data.

Patrick Abboud

Baerads