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What rhymes with “one two three” and is making big waves in the advertising industry?
Why, CTV, of course!
It feels like there wasn’t a single week in 2022 when connected TV (CTV) wasn’t in the news: from Amazon acquiring Thursday Night Football rights, to Netflix and Disney+ rolling out ad-supported tiers, to streaming viewership overtaking broadcast and cable in July, and more.
So, what’s with all the hubbub? Does the channel really offer that great of an opportunity?
In short: yes. With more and more people turning to CTV devices for their digital video content (nearly two-thirds of the US population this year), it makes sense that advertisers are upping their spend.
For marketers looking to make the most of this channel, there’s a lot to consider. Luckily, there’s also a ton of resources specifically designed to help you make sense of it all—and this list is the perfect place to start.
Ready to “skip intro” and get to the good stuff? Here we go:
Looking for the lowdown on connected TV advertising basics? Consider this your one-stop shop for all the fundamentals.
CPV and CPCV and VCR—oh my! Just as CTV advertising has exploded over the last few years, so too has the number of terms and acronyms used to describe the channel. For folks who want to both walk the walk and talk the talk when it comes to connected TV advertising, this one’s for you.
We all know that CTV viewership is skyrocketing, with ad spend following in kind—but what are the tangible advantages when it comes to leveraging CTV in a campaign? Here, we break down four key benefits of connected TV advertising.
Are over-the-top (OTT) and CTV advertising the same? Is CTV only good for reaching Gen Zers? For those confused by all the information out there—not to mention, misinformation—this post is here to help.
If you’ve moved beyond the basics and are looking to dive into the nitty gritty of CTV advertising, this piece offers the 411 on best practices and strategies to optimize your CTV campaign from start to finish.
CTV advertising is booming, but that doesn’t mean it’s without its challenges (we’re looking at you, fragmentation!). Here, learn how advertisers can navigate the complexity of the CTV landscape.
Is the game showing on Peacock? Amazon? YouTube TV? ESPN+?? Ah, how the used-to-be simple act of watching sports has changed. This piece offers a deep dive into live sports advertising, especially within the context of the digital future.
In this webinar, Beachfront’s Head of Demand Sales, Katie Long, and Basis Technologies’ VP of Product Marketing, Britni Gallello, unpack what marketers need to know about CTV and how to harness its power.
This comprehensive guide dives into everything marketers need to know about CTV advertising: from best practices and strategies, to trends and forecasts, to key CTV KPIs, and more!
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Keeping a pulse on the latest developments in adtech—from CTV, to identity, to brand safety, and beyond—can be overwhelming. And while many marketers would love to have the time to browse the news each day to stay up to date, it’s simply not realistic for everyone.
If you’re looking for a way to stay in the know, while having time for everything else marketers have on their plates these days, check out Basis Scout. This monthly newsletter recaps the latest and greatest tips, insights, news, and trends in the advertising industry—so you don’t have to go searching.
A puppy and a Clydesdale’s unlikely friendship. A Shaggy remix (feat. Mila Kunis and Ashton Kutcher). Two brothers’ unbreakable bond. A thank you letter to moms everywhere. When we think of the ads that have stuck with us (some, for years), these are a few that come to mind.
Some use humor, others appeal to emotion, but they’re united by one thing: each tells a story that’s authentic, relatable, and memorable. In other words, their creative is on-point.
And though having strong creative might seem like a no-brainer for marketers, in today’s complex digital media environment (not to mention tumultuous economic state), it’s easy for other parts of a campaign to take precedent.
Today, we’ll analyze why it’s so critical for advertisers to focus on creative in their campaigns. We’ll also explore a tool that’s invaluable to advertisers looking to amp up their creative. Ready to learn more? Let’s dive in.
To say campaigns today are complex would be a serious understatement. There is so much work that goes into each stage—from strategizing and planning; to building campaigns; to launching, monitoring, and optimizing; to final reporting and billing reconciliation. Throw in the sheer volume of devices and channels available to advertisers (plus the different creative formats for each) and we totally get why advertisers might be left wondering: “Why do I need to focus on creative? Isn’t it enough to get something in front of my target consumers?”
But, just as today’s digital advertising landscape is complex, so too is a consumer’s digital experience. In 2022, the average US adult spends over 13 hours each day with digital media. That includes smartphones, CTV, OTT, social media, digital audio, and more. Talk about information overload!
Given how much digital media people consume, it isn’t enough for people to simply be exposed to your product or brand. Having strong creative—creative that tells your unique story and forges connections with consumers—will distinguish you in an advertising environment that’s incredibly competitive.
We get it: Marketers are not only wading through a fragmented media environment—they’re also trying to make strategic shifts based on a turbulent economic environment.
However, if your team is going to invest significant time and resources into crafting a strong campaign, shouldn’t the creative be something that tells your brand’s story in an exciting and authentic way?
We certainly think so.
We also know that simply reminding marketers of the importance of creative isn’t enough. It’s like telling someone who is struggling during a race to just pump their arms and move their legs faster—which is to say, it’s largely unhelpful! Advertisers need tangible tools to free up their time and energy so they can focus on this critical component of campaigns, without burning out.
One solution that can be particularly impactful? Advertising automation.
Within the context of marketing, advertising automation is the use of processes and technologies to streamline the entire lifecycle of a campaign. It can include:
In short? Advertising automation is a game-changer. And now that we’ve gone over what it looks like, let’s dive into its impact on creative.
For marketers to generate creative that’s compelling and authentic, they need to have the time and energy to do so. And with the majority of advertisers reporting they use seven platforms in a typical day and nine for their average ad campaign, it’s clear that something’s gotta give.
Here’s where advertising automation can help: by reducing the number of disparate solutions used, leveraging tech to eliminate manual labor wherever possible, and allowing marketers to manage the entirety of their campaign through a single platform, advertising automation saves time and energy. That time and energy can then be used to make strategic, intentional decisions as marketers craft creative that elevates their unique story.
To really illustrate the impact of automation, let’s take a step back and imagine two different advertisers trying to craft winning campaigns:
The first advertiser uses nine different platforms to run their campaign, and they’re already feeling zapped from trying to manage all those different sources of information. For the sake of personalization, their team is manually building out different creative variations to connect with different consumers. Because of all the manual tasks crowding their days, they lack the time, energy, and resources to really focus on crafting their story in a way that’s memorable.
Now, let’s imagine our second advertiser (you probably know where we’re going with this…):
This advertiser uses an automated platform to consolidate all their channels into one place. As such, they have the time to really think through their creative strategy, and the resulting ads authentically tell their story. They also know the need for personalization is huge—so they use available integrations to reach the right audience in a personalized way. For example, a strong automated platform will have integrations that allow for dynamic creative optimization (DCO), which includes real-time product-based retargeting, audience segmentation, customer journey enhancement, and more, so marketers can reach the ideal audience in an efficient and automated way.
By embracing advertising automation, marketers not only have the time to focus on creative strategy—they also have tools to quickly personalize that creative and get it in front of the right customer.
Let’s recap. A strong digital marketing campaign needs strong creative. Unfortunately, marketers’ days are eaten up by navigating the complexity and fragmentation of today’s media landscape, and creative often falls by the wayside as a result. To re-prioritize creative, marketers need more time, and more energy—both benefits that advertising automation is proven to provide.
Ironically? To re-prioritize creative in their campaigns, marketers don’t need to get creative at all…they just need to invest in the right tech.
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Interested in a deeper dive on all things automation? We’ve done pieces on workflow automation, automated billing, and automated reporting, as well as crafted a comprehensive guide that analyzes how automation can streamline your campaign process and save you valuable resources. Interested? Learn more here!
In recent years, the definition of “watching TV” has evolved: Whereas linear TV (cable, broadcast, and satellite) used to dominate, over-the-top streaming and digital video content are taking over. One of the most popular ways to access this content is via connected TV (CTV), which brings digital video and streaming content to big(ger) screens.
With more and more people consuming content via CTV each year, it’s no surprise that ad spend has exploded in kind. As marketers strive to make the most of the connected TV advertising opportunity, it’s likely they’ll encounter an overwhelming amount of information and recommendations. And, as the ol’ adage goes, you can’t trust everything you read—especially on the internet.
For advertisers wanting to separate fact from fiction when it comes to connected TV, this post is for you! Below, we’ll address some of the biggest misconceptions about this channel to help marketers utilize it as effectively as possible.
Ready? Let’s dive in.
Connected TV’s reach is expanding each year. In 2019, 195.9 million people used a CTV at least once a month; as of 2022, that number had grown to 225.7 million. And, in July 2022, for the first time, US streaming surpassed cable TV viewing.
And as CTV viewership is increasing, so too is CTV ad spend. In 2017, US CTV ad spend was just $2.8 billion; five years later, it surpassed $21 billion. And it makes sense, right? Advertisers want to reach people when and where they’re viewing video, and CTV…well, let’s just say it’s the place to be.
As people consume more and more video, there has been an explosion of terms used to describe digital video viewing and advertising experiences. And to be honest? Many of the terms are so closely related that it seems like they could be used interchangeably. Side note: If you’re having a hard time keeping up with all the lingo, our CTV glossary is here to help!
Two of the most commonly confused terms? Over-the-top (OTT) and connected TV (CTV). Though often used synonymously, these two terms are distinct. Let’s break it down:
Over-the-top (OTT) is a method of delivering video content to users through the internet, rather than via cable, broadcast, or satellite. OTT content (and advertising) can occur on smart phones, tablets, desktops, and—you guessed it!—CTVs.
Connected TV (CTV) is the term used for any television that is connected to the internet, such as smart TVs or regular television sets used with OTT devices. For something to be considered “CTV” it must be a television device—not a smart phone, tablet, or desktop!
One way we like to remember it? All CTV content is OTT content, but not all OTT content is CTV content (sort of like how all squares are rectangles, but not all rectangles are squares).
Today, more than ever, the CTV inventory available to advertisers is vast. And with streaming behemoths Netflix and Disney+ introducing ad-supported tiers, it just got more expansive. Having access to all that inventory gives advertisers a real competitive edge—through BasisTV+, for example, advertisers can reach 93% of US smart TVs.
“And what about live sports?” you might ask. “Surely that must still be primarily linear inventory?”
Again: Nope!
The future of live sports is digital. ESPN, NBC Sports, the NFL Network, Sling, CBS Sports, and so many more offer advanced TV advertising opportunities. With 84 million sports viewers currently tuning in on digital devices and 79% of sports fans saying that, if possible, they would watch live events exclusively on streaming platforms, the opportunity to reach sports viewers via CTV is significant.
When it comes to CTV advertising, there are a lot of benefits. One of the most notable? All—yes, all!—CTV advertising is addressable. Importantly, the same cannot be said of linear.
Why is addressability so significant? It enables advertisers to create personalized ad experiences, target them to specific groups of consumers, and measure the results of those ads. With 62% of consumers expecting ads that are customized to their distinct interests and needs, personalization in advertising is a big deal—and CTV is a great way to achieve it.
It’s true that Gen Z accounts for a good amount of CTV viewership. But are they the only ones tuning in?
“No!” shout the millennials watching The Great British Baking Show on Netflix as they tend to their (many) houseplants.
Millennial trope jokes aside, CTV is a great way to reach a variety of viewers—across all generations—where they watch video. Case in point? The 2022 breakdown of US CTV users, by generation:
What’s better than reaching people where they’re watching video? Doing it as part of a holistic, omnichannel campaign!
Current technology not only allows advertisers to target CTV ads based on thousands of parameters, but also to target them across devices. That means that a consumer could first see an ad for your product while they’re binge-watching Rick and Morty, and then be re-targeted for that product on the same or a different device later on. Nifty, eh?
There are so many ways we could rewrite this one as a truth: Programmatic advertising and CTV go together like…PB&J; like French fries and ketchup; hot cocoa and ice skating; peas and carrots; pumpkin and spice…You get the picture.
Still unconvinced? Even after the screaming marmot and our terrible similes?! Here are a few stats to know:
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Congratulations! You’re well on your way to becoming a CTV advertising expert.
That said, there is a lot more to know about this channel than we can cover in one post.
If you’re looking to level up your CTV knowledge, our connected TV advertising guide can help. We go all-in: from viewership and advertising trends, to best practices and strategies, to key KPIs and optimizations, and so much more.
Interested?
If we could wind back the hands of time to 20 years ago, chances are that folks would be baffled by the terms “cord-cutter,” “binge-watching,” and “streaming.” Today, thanks to the growth of connected TV (CTV), you’re likely quite familiar with them (and if not, boy—do we have a resource for you!) With more and more people watching digital video, it’s no surprise that CTV viewership has skyrocketed, and that advertising spend has closely followed.
With the rise of this new and increasingly popular channel, it makes sense that advertisers have questions: How extensive is the inventory? Can CTV ads be targeted? And, does embracing CTV advertising mean adding another point solution to our existing stack? Today, we’re digging into these questions—and more—as we explore some of the key benefits of connected TV advertising.
Ready to learn why CTV should be part of your strategy? Let’s dive in.
It’s no secret that digital video is booming: By 2024, the average US adult will spend more time with digital video than traditional (aka linear) TV. But does that mean that the days of advertising during live sports, TV shows, and movies is gone?
Absolutely not. While time spent watching linear television might be decreasing, time watching video on connected TVs is increasing. As more and more content is offered via over-the-top (OTT) services—from TV shows, to blockbuster movies, to Thursday Night Football—people are increasingly turning to CTVs to watch content that used to only be available via cable, broadcast, or satellite. In other words, it’s not that people aren’t watching TV anymore—they’re just accessing the content in a different way.
And just how many people are tuning into CTVs for their digital video content? In 2021, 218.3 million people in the US were monthly CTV users, and by 2024, that number is forecast to exceed 230 million. Though levels of CTV adoption vary—from cord cutters, to cord shavers, to cord nevers—viewership is consistently increasing, especially among younger generations like Gen Z and millennials.
The big takeaway? For advertisers looking to engage with consumers where they’re viewing video—and often on big screens, to boot—CTV has a lot to offer.
Just as connected TV viewership is increasing, so too is the content offered via over-the-top (OTT) services. From Netflix and Disney+ joining the ad-supported tier game, to platforms like Amazon and YouTubeTV offering live sports coverage, CTV advertising inventory is extensive.
How can advertisers tap into these vast offerings? There are a couple of different ways to access CTV inventory within a DSP: via open exchange, and through private marketplace (PMP) deals. BasisTV+, for example, offers inventory that reaches 93% of US smart TVs. Here are a few key things to know about each buying approach:
We’ve discussed how CTV advertising is a great way to connect with audiences where they’re watching video, and that there’s a lot of inventory to choose from. But what about when it comes to getting your ad in front of the right consumer?
This is yet another of CTV’s strengths. Though only some linear TV advertising is addressable, all CTV advertising is. This means that marketers running CTV campaigns can use data to target audiences based on a variety of factors.
Here are a few of the (many!) targeting strategies that can be used within a CTV campaign:
And when it comes to contextual targeting? There are so many ways to segment and layer data contextually that it gets its own list:
Once targeting parameters are in place, advertising platform features like real-time reporting allow marketers to use data to optimize tactics and minimize wasteful ad spend.
More than ever, today’s consumers expect a personalized and intentional ad experience. Using targeting strategies like the ones we covered above is one way to achieve this; another is creating an omnichannel experience for potential customers.
Think about the last time you bought a product that you first saw in an ad. Perhaps it was an Instagram ad, a banner that showed up while you were searching for something on Google, or a video ad that rolled in the middle of that Hulu original you were binge-watching on your smart TV. Whatever the case, it’s likely that, after you were exposed to that product via one advertisement, you saw one—or more—subsequent ads on different platforms that kept the product top-of-mind, until you finally clicked “add to cart.”
Omnichannel ad experiences are those that target consumers across devices, with the intent of moving them further down the purchase funnel. After all, people spend time on a variety of devices, for a wide range of purposes, and advertisers want to reach them in a way that’s impactful. Connected TV fits wonderfully within an omnichannel approach: advertisers can strategically reach their target consumers via CTV, and then retarget on the same device or through other channels like search, social media, and more.
And if you’re worried that embracing CTV means adding another piece of complexity to today’s already-complex-enough digital media environment, here’s the great news: a strong DSP will allow you to tap into this inventory without having to use a different platform. BasisTV+, for example, allows advertisers not only to run CTV campaigns, but also to enable cross-device targeting features. With more than a thousand advanced TV targeting parameters and comprehensive real-time reporting, advertisers can use data and metrics to create a holistic, omnichannel experience for consumers.
Savvy marketers connect with consumers when and where they’re spending time. With nearly 84% of all US households using a connected TV in 2022 and with time spent watching on CTVs approaching two hours per day, CTV is a crucial part of any omnichannel advertising strategy.
Want to learn more about how to make the most of the connected TV advertising opportunity? In our CTV guide, we cover CTV advertising best practices and strategies, how to optimize campaigns, and so much more!
Over the past several years, connected TV (CTV) viewership has skyrocketed. As more and more people turn to CTVs to consume video content, it’s no surprise that digital ad spend follows. Marketers want to reach people when and where they’re watching video, and with over 109 million US households using a connected TV in 2022, CTV advertising is like blasting Mariah Carey the day after Thanksgiving: it just makes sense.
With this channel’s explosive growth has come a similar influx of terms (and acronyms, because we in the ad industry love our acronyms—IYKYK) to describe the CTV viewing and advertising experiences. Couple this with the complexity of today’s digital marketing landscape, and it can be downright overwhelming. For those marketers left wondering what the heck the difference between CPV and CPCV is, don’t worry—we’ve got you!
Here, we’ve broken down the terms and definitions advertisers need to know to make the most of the connected TV advertising opportunity:
Pssst: we’ve got a whole piece on connected TV advertising planning, targeting, and measuring! You can check it out here.
Knowing the lingo to talk about all things CTV is great. But you know what’s better? Really understanding the complexities of the channel and seeing how to make the most of it within your campaigns.
Enter: Basis Technologies’ Connected TV Advertising Guide.
If you’re looking for a deeper dive on all things CTV advertising, we’ve got you covered. In it, we explore today’s connected TV advertising opportunity, lay out best practices and strategies, and show you how Basis can help. Interested? Check it out here.
I hated PE as a kid. Don’t get me wrong, I was quite active—how my parents balanced my involvement in basketball, softball, swimming, volleyball, and soccer at the same time, I’ll never know. But PE (aka physical education, aka phys ed, aka my worst nightmare)? Hard pass.
Why? My hatred boiled down to one thing: forced lap running.
Each day in class, my teacher would bring out a box filled with purple slips of paper and dole out several to each person. As class progressed, there were more “opportunities” to “earn” these slips—namely, by not following the rules.
Before class ended, the lap running would begin: run one lap for each slip, drop one in the box when you pass the teacher. For a kid who was a bit of a rulebreaker and not very fast, this routine was, quite simply, the worst.
What annoyed me most was that I had zero choice in the matter! If you’d asked me then if I would ever willingly take up running, the answer would have been a resounding “NO.”
Fast forward a few decades, and—alas!—I was wrong. As an adult, I’m an avid hiker and spend as much time in the mountains as possible. And in the past few years, my outdoor activities have expanded to include (drumroll, please) trail running!
The difference now? I choose to run, give myself opportunities to “play” and try new things as I train, and (perhaps most importantly) there have been zero purple slips involved. Turns out, I have completely different feelings about running when it’s my choice.
But enough about me—it’s time to let you in on how my journey with running relates to digital advertisers.
Right now, advertisers are in a position where they can choose to explore privacy-friendly solutions. That means the process can be done in a way that’s intentional, experimental, and even playful. Today, I’ll make the case for why advertisers should start testing third-party cookie alternatives early, and explore some of the identity solutions currently available for doing just that.
I know, I know: third-party cookie deprecation has been delayed to 2024. Plus, marketers already have plenty to juggle with inflation, economic instability, and ever-shifting consumer sentiments. But while it makes perfect sense for advertisers to want to procrastinate, there are significant benefits to testing solutions now.
If my relationship with running has taught me anything, it’s that doing something by choice is far more pleasant—and effective—than doing it because you “have to.” Still not convinced? Here are the two biggest reasons digital advertisers should get a head start on testing alternative identity solutions:
Consumers have made it clear that privacy must be a priority for the advertising industry. With 86% of Americans saying data privacy is a growing concern for them, and a variety of privacy-focused regulations being introduced over the past year, it’s clear that consumers and regulators alike want the status quo to change ASAP. Brands and marketers who embrace this sentiment now can reach consumers in innovative, creative ways that align with demands for increased digital privacy. Beyond that, addressing customer demand for privacy is a great way to build brand trust and loyalty, both of which are increasingly important in this time of shifting consumer behaviors.
I mentioned this above, but it’s worth restating: doing something when you can choose how and when to do it is a far better experience than being forced into change. Browsers like Apple’s Safari, Mozilla’s Firefox, and others have long since bid “adieu” to third-party cookies, and, despite Google’s many delays, the metaphorical bottom of the cookie jar is in sight. Eventually, third-party cookies will no longer be an option, whether advertisers like it or not. By starting to use cookieless solutions now, marketers can avoid the unpleasantness of being forced into the change unprepared.
Let’s start with the bad news: there is no silver bullet to fix all our third-party cookie loss problems...yet. However, there are many strategies that marketers can play with to help them reach the right audiences in privacy-friendly ways.
Here are some of the solutions marketers can explore when it comes to effectively crafting personalized customer experiences in a world without third-party cookies:
Have you “run” out of patience for my extended metaphor? No? Great, 'cause I’m not done yet!
One of the most impactful lessons learned along my running journey has been the importance of trying new things, especially things that are intimidating or unfamiliar. As a mountain-activity-loving adult, I spent years watching those around me dive into trail running, but didn’t participate because of the negative associations I had with running—and also because I feared being terrible at it.
Eventually, I realized how much I was missing out. By taking the risk, I developed a newfound sense of confidence: sure, I was sometimes (maybe even often) the last one up the mountain, but I made it to the top! And I enjoyed it along the way!
For advertisers wary of trying new strategies in their campaigns—especially when it comes to adapting to the identity crisis—a similar lesson applies. In preparing for third-party cookie loss, it’s better to make progress imperfectly than to get left behind.
And the great news? Exploring these new solutions is far more controlled than throwing on a pair of high-tread shoes and hoping they don’t slip as you barrel headfirst down a steep slope. Here are some of the ways advertisers can intentionally explore these new approaches:
A few weeks ago, my partner and I were trail running through the Wind River Range in Wyoming, in some of the most rugged, awe-inspiring mountains I’ve explored. As we followed the winding trail up and over rocky passes, beneath jagged cirques, and around stunningly blue lakes, I found myself reflecting on my growth as a runner: how much had changed since I was that kid living in fear of being handed an extra purple slip and forced to run another lap around the gym!
You know where I’m going here: while transitioning away from third-party cookies may seem daunting now, starting to test privacy-friendly alternatives is the first step to using those alternatives confidently when third-party cookies are finally gone. By being proactive and trying new privacy-friendly strategies now, marketers can avoid being stuck with that dreaded pile of purple slips when third-party cookies are no longer an option.
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Basis Technologies is here to support brands and agencies as we approach third-party cookie loss. To learn more about our perspective on the identity crisis, get a deeper dive on what led the adtech industry to this point, and explore novel solutions in greater depth, check out our guide.
Over the past several years, connected TV adoption and usage has skyrocketed, as people increasingly turn to CTV as their viewing device of choice. How can advertisers embrace this growth and ensure they’re effectively connecting with consumers where and when they’re watching video?
In this guide, we analyze the latest data, trends, and research to help advertisers uncover everything they need to know about CTV advertising.
In it, you will learn:
Ready to make the most of your CTV ad spend? Download your copy of the guide today!
Pandemic, inflation, economic instability, supply chain challenges—oh my! To say the landscape for consumer packaged goods (CPG) marketers is complicated feels insufficient. This year (and the year before…and the year before that…) has been a wild ride. And though no industry has escaped unscathed, CPG has been especially hard-hit.
If you’re still reeling from the changes, we’re here to give you the 411. Below, catch up on all of today’s CPG advertising “need-to-knows:” the challenges imposed by the last few years’ instability, the broader trends and shifts shaping the industry, and the interplay between these trends and today’s economic landscape. Settle in, grab your favorite packaged snack (Doritos for us!) and let’s get this party started!
Before we explore the latest trends, let’s set the stage for CPG advertising today. Here are just a few of the (many) factors at play:
Talk about whiplash, eh? Now, onto some of the larger trends we’re seeing in the CPG advertising space and how they’re being shaped by the complexities of today.
Though some consumers are wavering on brand loyalty because of inflation, that doesn’t mean their expectations for go-to products and brands have gone out the window. With a multitude of products at consumers’ fingertips (thanks, internet!) and competition at an all-time high, the pressure is on for CPG brands to differentiate themselves from the rest of the pack.
And the two factors that are differentiators for many consumers today? Convenience and value.
During the COVID-19 pandemic, e-commerce soared, increasing by 43% in 2020. And though in-store shopping has returned, consumers have grown accustomed to a certain level of convenience. To accommodate for this demand, brands are optimizing their shopping experiences across e-commerce platforms, utilizing advertisements that allow integrated purchasing options, and balancing supply and demand (to avoid the dreaded “out-of-stock” that frustrates so many consumers).
In the context of today’s record-high inflation, brands need to clearly communicate the value of their product for consumers. As mentioned earlier, reports show inflation has started to catch up with purchasing trends, and more and more people are buying less and showing price sensitivity. One way brands can highlight their value is through seeking to understand their consumers and crafting personalized customer experiences that emphasize how their product fits customers’ distinct needs.
Some brands have opted for an even bolder approach to communicating their value amidst inflation, by speaking openly with consumers about price increases and their justifications for these changes. For example, Mélanie Masarin, the founder of nonalcoholic aperitif company Ghia, said they made the choice to send a price-increase email when they had “waited to increase prices until [they] absolutely couldn’t anymore.” Though she was anxious about how the email would be received, she found the response to be overwhelmingly positive, and noted that many customers thanked the brand for its transparency.
Can you remember a time when you made decisions about what to buy without using the internet?
If not, then shoot: looks like we’ve dated ourselves.
And if so—ah, weren’t those simpler times? Did your dad also spend hours at the local Ace Hardware comparing different models of drills, consulting staff, and inevitably buying the one he originally planned to? No? Okay, we’ll get back on topic.
In today’s increasingly-online world, utilizing an omnichannel digital strategy is a must for CPG advertisers.
The digital explosion of the past two decades has changed the way consumers shop. More and more people are shopping online, and even die-hard in-store shoppers are researching products on the internet before purchasing. Couple that with the fact that consumers’ attention spans are reducing year after year, and the takeaway for marketers is clear: people need to see your product at the right time(s), on the right channel(s), and with the right message.
This is where having an omnichannel strategy is critical for CPG marketers. Given how short attention spans are and the sheer volume of content people consume each day, consumers need to be exposed to your product multiple times and through varying channels.
And the best way to reach them? Where they’re spending the most time. Want to take a gander at where the average US adult spent approximately 8 hours and 5 minutes every day in 2021? With digital media.
As such, an effective omnichannel strategy should involve multiple touchpoints with consumers across different digital media channels. And with the exceptional cross-device targeting capabilities available today, reaching customers at the right time and on the right device has never been more seamless.
Imagine this: you and your team work together to create an intentional, personalized, omnichannel experience for your target consumer. They first encounter your product through a video ad as they watch the newest season of The Handmaid’s Tale on their connected TV, and are then re-targeted via mobile search and social media. When they see the ad on Instagram, they click “shop now,” are taken to the online retailer that has your product in-stock…annnnnd end up clicking to a similar product that pops up alongside yours as “recommended.” It’s “add to cart” for your competitor, and a sad day for you.
This is a prime example of the growing importance of balancing supply and product presence not just in physical stores, but also on digital shelves. Today, thanks to the internet, when the average consumer goes to shop, they have a whole host of options available to them at every stage of the process. And with 10% of total US CPG sales happening online this year, establishing your brand and product’s digital shelf (in conjunction with a strong digital advertising strategy) is important.
Winning digitally looks very different from in-store: space is not finite, and online shopping offers endless “aisles” for consumers to browse. With this comes a notable increase in competition, as even more brands can compete within a given category. On top of that, many online retailers have features where products can be compared with just the click of a button, and retail media networks allow brands to advertise in the digital spaces where consumers shop.
Instead of vying for a great location on an endcap or at eye-level on the physical shelf, brands must now use branding and product descriptions strategically and optimize their offerings for both paid and organic search. These same features must also speak to consumers once they click on a product, since alternatives will almost certainly be displayed simultaneously. The same copy and design on your product’s physical label cannot just be plopped online and expected to drive sales without being adjusted to better suit the digital shelf space and entice shoppers viewing your product on desktops, mobile phones, or other devices.
Establishing a strong digital shelf presence goes hand in hand with digital advertising for your product: as explored in our example above, you don’t want a consumer to follow an ad for your product, only to choose one of the competitors that will, inevitably, be displayed right alongside it.
By remaining flexible and agile amidst the present uncertainties, as well as adapting to consumer demands, enhancing digital presence, and utilizing omnichannel advertising capabilities, CPG marketers can effectively reach their target consumers. But, as explored here, the current landscape and broader trends are ever-evolving in the advertising world—both in CPG and beyond.
We know that staying in-the-know on the latest and greatest in adtech and marketing can take a lot of time. As much as we might want to spend hours perusing the news and doing deep dives on current trends in the industry, we also know that likely isn’t a high priority when SHTF.
Enter: Basis Scout. Each week, our team puts together a list of the most important news and trends we’ve seen; and every month, we do a roundup newsletter with all the hottest happenings. Interested? Subscribe here, and get ready for all the best news, tips, and insights from the industry to land straight in your inbox.
Is there anyone who finds inflation convenient? Perhaps some overly enthusiastic high school math teacher who seizes the opportunity to create a particularly perplexing prompt? We can imagine how it might unfold:
If Billy bought 320 watermelons for his end-of-summer bash last year for $1387, and 47 packs of hot dogs for $100, how much should he budget for this year, accounting for the July 2022 inflation rate of 8.5%? And what if he had thrown his party the month before, and instead faced an increase of 9.1%?
Yikes. Jokes aside, inflation truly is everywhere, and people are feeling the impacts. Some Americans are not only cutting back on discretionary spending, but also changing their shopping habits around essentials. From buying smaller quantities, to switching to cheaper alternatives, to hunting more rigorously for bargains, many are leaving behind brands they’ve been loyal to in the past as they search for better prices.
Brand marketers are likely wondering: How do I approach inflation in my campaigns? Ignore it? Make jokes?? Approach with the utmost seriousness??? Maybe being back in high school doing those word problems wouldn’t be so terrible…
Though delving into the possibilities of time travel is tempting, we’ll instead focus today’s post on something a bit more actionable: how brands are addressing inflation in sensitive and effective ways. There’s certainly no silver bullet when it comes to advertising during times like these. However, we’ve dug up five ads that address the “I” word in a way that stands out, and we think there’s something to be learned from them. Let’s dive in.
Everlane launched their anti-inflation sale in early August. It was a timely campaign, seeing as it closely followed reports that inflation had hit its 40-year high of 9.1%.
“Priced Like It’s 2019”—what a genius line! We were immediately transported to those glorious, pre-COVID, pre-invasion of Ukraine, pre-this-round-of-economic-uncertainty days, and clicked through the sale prices with nostalgic musings on simpler times.
Everlane’s intentionality is what made this campaign shine: they spoke to the moment by running the campaign when news around inflation was exploding, and they relayed a message that set off memories of a time when shopping was far more pleasant, thus disrupting the near-immediate negative feelings many have when they think about spending money in today’s economy.
Our key takeaway: This campaign shows just how impactful it can be when brands adjust their messaging to meet the complexity of the current moment. By pairing thoughtful, timely messaging with other strategies—such as retargeting key audiences across channels—brands can ensure that consumers are getting the right message, in the right way, at the right time.
Eggs that cost a bajillion dollars. Gas that costs $5,333.90 per gallon. Used cars starting near a million dollars. These are just a few of the outlandish images seen at the start of Del Taco’s video ad highlighting their “20 Under $2” menu.
And though the ad first ran when inflation was only 7% (ah, what a time), the takeaways for marketers are as relevant today as they were then.
This ad is a great example of a brand using humor effectively in a complex situation. It’s successful because of the level of exaggeration: the claims in the video are so extreme that they create a welcome sense of distance and separation from reality.
What Del Taco doesn’t do? Make jokes in a way that minimizes the struggles that consumers are facing. When you consider the fact that 84% of Americans plan to cut back on spending due to current economic conditions, it’s clear that inflation is seriously impacting peoples’ lives—and that’s nothing to take lightly. Del Taco walks the line by laughing with us, not at us. And, the ad goes an extra step to position Del Taco as supportive and understanding by following their jokes with the phrase “We get it, and we got you.”
Our key takeaway: Humor is best served with a side of empathy, especially when joking about things that have serious implications for peoples’ lives. At a time where brand loyalty is faltering, brands need to be especially mindful that their ads don’t alienate customers or leave them with feelings of distrust. This video ad reflects a deep understanding of the current consumer and seeks connection with them in a way that’s relevant. Del Taco isn’t afraid to use humor to get their point across, but they do it in a way that shows they “get” their customers.
Over the last few months, inflation has had an outsized impact on goods, as compared to services. Case in point: according to the Bureau of Labor Statistics, the prices of durable goods have risen by 14 percent over the past year, compared to the 5.4 percent increase in cost of services. Coupled with the fact that data shows consumers are spending less on things and more on experiences, companies that provide services—such as travel brands—are well positioned to engage with customers.
In their recent campaign, Expedia used these factors to their advantage. Their ad “Stuff: Made to Travel” is all about how most people don’t look back thinking about the stuff they bought, but rather the experiences they had. They don’t explicitly talk about inflation in their video ad; instead, they imply its impact by concluding with a clip of a family running on a beach alongside the words “Save more on the things that matter.”
Our key takeaway: Paying attention to current trends is always critical in advertising, but even more so during times of economic instability and uncertainty. By understanding the factors impacting and driving consumers, and thinking creatively about the opportunities they present, brands will be well-positioned to convey their value within a specific moment.
Okay, we know services and travel brands might have it a bit easier right now, but hear us out! This ad from Outdoorsy offers takeaways for brands of all industries.
Unlike Expedia’s ad that addressed inflation in a highly nuanced way, Outdoorsy’s names it up-front. Not only that—they take it a step further and offer potential consumers an escape. In this video, they show stunning images of people exploring nature, each with accompanying words that say something along the lines of “no inflation here.” As an RV-booking company, they then highlight their unique offering and how it’s relevant to the present moment: skip the expensive, flashy travel, and book an RV instead.
Brands across all industries can employ a similar advertising approach by considering questions like:
Our key takeaway: Highlight your brand’s key differentiators in the current landscape. For Outdoorsy, this meant not only talking about travel, but also about their offerings as an RV-booking company, which allows customers to forego pricey hotels and flights during a time when they are especially expensive. By leaning into what makes their brand unique, they crafted messaging that not only meets the moment but also elevates their brand within the moment.
As we mentioned earlier, goods have been hit harder by inflation than services, and grocery stores are a prime example. To gather anecdotal data on where people have hit their “inflation breaking points,” one Vox reporter asked her Twitter following—and found that the most common response was “at the grocery store.” What can brands do when the places they sell their goods inherently elicit stress?
One winning example is Fresh Thyme Market’s video ad, “Immerse Yourself.” The video explores the connection between the goods we buy and where they come from, with imagery designed to generate bliss and contentment. It opens with images of a fisherman at sea, fresh peaches being brought in from an orchard, and a woman walking through a sun-kissed field of lavender; then shifts to images of people shopping at Fresh Thyme Market for these specific products.
By juxtaposing goods’ pastoral origins with their moments of purchase, the ad reminds consumers of the enjoyment and contentment that can be found in food. Like Outdoorsy’s ad, it leans into the experiences offered by their products, emphasizing the specific value of the fresh and local food sold at Fresh Thyme.
The ad concludes with a quick mention of affordability: “real healthy food, at real affordable prices.” This further drives home the point that, amidst inflation, Fresh Thyme offers customers something valuable.
Our key takeaway: Consumers need to know what value your product or brand provides, especially within today’s economic context. Even if you don’t want to explicitly discuss or name inflation in your marketing, it’s important to convey your brand’s differentiators in a compelling way.
There is no “one way” to advertise during times of economic uncertainty. But knowing your consumer, understanding the moment, and approaching challenges with a balance of humor and empathy can go a long way.
To really understand where customers are coming from, it’s important to stay up-to-date on all the complex factors shaping today’s marketing landscape. But researching and finding what’s most relevant can be time-consuming (And you’re busy! We get it!)
Here’s where we can help. We put together a monthly newsletter, Basis Scout, where we round up all the hottest intel in ad tech and digital marketing. For digital advertising professionals trying to keep a pulse on what’s happening, it’s a no brainer.