While digital ad spend continues to increase year over year, a few lingering questions still remain – how are we going to view and manage the dollars that are being shifted over from television budget to digital video? Will television teams buy digital video? What does the future of digital video look like?

Television ad spend continues to hold the largest segment of overall spend at just about 40%, however with the omnipresence of video, these dollars will most likely be shifted toward the digital bucket. Online video is changing how video content is consumed, along with the overall advertising experience. Television advertising has been able to maintain its giant status over the past few years with only slight erosion. However, digital video continues to grow in both time spent and videos streamed.

Several companies, including Nielsen, have been focusing on ways to relate the measurement of GRPs to online video so that groups who have been planning television ad dollars are able to adopt the planning and buying structures of online video. Technology platforms such as Brightroll and Adapt.TV are educating both primarily digital and television teams to help them understand what the landscape of video buying looks like.

A recent study conducted with the IAB, Nielsen, Yahoo and Microsoft examined the result of allocating a certain portion of television dollars to digital video. The conclusion of the study proved that shifting up to 15% of ad spend to online provides incremental and effective reach.  In fact, according to the study, digital video advertising delivers better ROI for marketers by 62%.

This study also examined the impact sequencing had on consumers, with stronger results when consumers had seen an online ad before they had seen the television ad. Thus, the concept of clustering video into one bucket can very well lead to stronger results for the advertiser. The two methods of video collaborating produced distinguished results, which is what we all want for our clients.

Even though a conclusion hasn’t been made about where exactly video spend needs to fall, it might not even need to be made. As the buying patterns continue to evolve, our pie charts of ad dollar allocations should evolve as well. Video has the potential to become its own sector instead of simply a sub sector of both television and digital. But, we shall just have to wait and see.

Sources:

• http://www.emarketer.com/Article/US-Social-Spend-Breakouts-Show-Rising-Influence-of-Mobile-Local-Outreach/1009827
• http://techcrunch.com/2013/09/30/digital-ads-will-be-22-of-all-u-s-ad-spend-in-2013-mobile-ads-3-7-total-gobal-ad-spend-in-2013-503b-says-zenithoptimedia/
• http://www.iab.net/media/file/Digital-Video-and-TV-Advertising-Viewing-Budget-Share-Shift-and-Effectiveness.pdf
• http://digiday.com/agencies/celtra-video-ad-sellers-chase-tv-dollars/

You snap a picture of that beautiful sunset from the beach, add a nice Mayfair filter to it with a few clever hashtags and sit back and wait for your phone to light up with anticipation. As those 23 notifications pop-up from friends, family and the odd follower you’ve never met, you tend to love this moment, whether you care to admit it or not. Now, imagine how big your smile would be if you were on the team at Michael Kors who garnered over 220 THOUSAND likes from the first ever Instagram ad. Makes for a pretty happy day.

So, the question is then how much does it take away from the ad that 20% of the responses were negative? Not much.

As Users, We <3 Instagram

Despite a lot of complaints about the ads Instagram began running recently, the application is seeing success so far from the ads, Instagram CEO Kevin Systrom said at a conference in early November. The Michael Kors ads drew some complaints for their prominence in peoples’ news feeds, but they have also drawn “very positive comments,” including people recommending the advertised to friends and asking where they can get it

In fact, on a daily basis, there are 55 million photos uploaded to Instagram, with 12 thousand likes per second across all of these photos.  With a community of 150 million active monthly accounts, it isn’t a question of whether brands should layer Instagram advertising into their media budgets, but rather how and what each brand is going to do with this new opportunity.

An advertisement by definition is something that is shown or presented to the public to help sell a product or make an announcement. I believe that Instagram is bringing advertising back to its core, which involves attracting the consumer at initial glance, so much so for the consumer to want to retrieve more information on the product. With Instagram, there is no option to add in external links or upload via specific dimensions; you follow their structure and create something inside of that structure that your consumer will like.

The weight of Instagram’s success with advertising is up to the content producers. Instagram doesn’t have a repost feature so the original content is what is going to have to catch the eye of users on the application. As humans, we tend to not do so well with change. But as much as we miss the days of ad-less Instagram, as a consumer we are going to have to embrace it and make these a part of the work that we do with our clients.

With declining print sales and the pressure to monetize digital, many newspaper websites have considered putting their content behind a paid or metered wall. A common theme is to bridge the gap between the two revenue streams. The potential of additional revenue via a paid subscription also comes with challenges; most notably a decline in advertising dollars. When a publisher places content behind a paywall, they risk losing readership, leading to less page views, and that means less ad space to be sold. Should online publishers take the plunge? For some online publishers, yes, but it might not the best route for everyone.

One of the most popular examples is that of the New York Times.  It launched its paid digital subscription model two years ago and it has been exceptionally successful.  So successful in fact, their paywall now accounts for more revenue than their digital advertising revenue. While this is a sure sign that their paid model is “working,” one might assume that their losses in advertising revenue continues to raise eyebrows. Furthermore, can the Times sustain and grow this paid revenue model?  If not, there’s still a significant challenge: how to grow the advertising revenue behind a paywall.

For some newspaper companies, that is the exact question they are facing. Surprisingly, there are about 400 online U.S. newspapers that now use a paywall; and many more are flirting with the idea of forcing readers to pay for their content. With the success of the Times, why are these companies hesitating?  Gannett, owner of USAToday, has also been able to successfully prove that readers are willing to pay for content – most readers being new subscribers, to boot. Being that not all newspapers are created equal, there is heightened apprehension around losing readership. Not all readers are willing to pay for content, especially with many other media outlets just a click away. Not to mention – the advertiser – do they want to be behind the paywall? If so, will the page views be there?

Big name sites like the Dallas Morning News, The Washington Post, San Francisco Chronicle and the Boston Globe have also implemented paid subscriptions within the past two years. For them, the results haven’t been as successful as the Times. The Post is still facing losses this year. The Globe is facing similar challenges, having only 39,000 subscribers as of June 30, 2013. The Dallas Morning News implemented a hard paywall (all content must be paid for vs. allowing some for free) in January 2011 but removed it altogether in October this year. Similarly, the Chronicle removed theirs after only four months.  Simply put, paywalls did not make up for the losses in print revenue for these outlets.

A paywall might be a good fit for your online subscriptions – depending on your reader loyalty and marketplace position. Other publications have experienced a decline in traffic which leads to less ad space to be sold. For the advertiser, they are now next to a qualified reader – which is incredibly valuable.  But for the publisher, the verdict is still out on whether or not they will be able to sustain the revenue growth from paid subscription models.

At Centro, we believe there are additional revenue streams that some publishers might be missing out on, namely unsold inventory, data protection, as well as our Affiliate program that provides additional lift beyond owned inventory. A paywall might not be the end all be all to bridging the revenue gap. There’s going to be a mix for everyone.

While digital place-based (DPB) media reaches on-the-go consumers throughout their day, the inability for consumers to directly engage with DPB screens leaves more to be desired from this medium. However, technological advances are giving DPB a significant role in cross-platform digital programs. Using push and pull messaging technologies via consumer mobile devices, the following methods drive engagement by putting DPB-initiated ads right into consumer’s hands.

Near Field Communication

Near Field Communication (NFC) uses a radio signal to send information from one NFC chip to another. In the case of DPB, one chip would be on the frame of the screen while the other is installed in the hardware of a smart phone. By bringing those chips within close proximity (usually only a few inches), the NFC-enabled device will read the signal and pull (download) content for the user.

There is much anticipation around NFC, mostly due to how tap-to-pay methods can improve the ease of retail transactions. However, only about 15% of mobile devices are currently enabled with this technology. Expectations are high that the next few years will see a significant increase in NFC-ready smartphones, and thus a significant increase in advertising executions featuring NFC.

QR Codes

Quick Response (QR) codes allow consumers to pull content to their devices by scanning the black and white codes with a camera. A QR-reader application allows the camera to decode the data. QR codes are also located on the frame of the DPB screen, and deliver more information.

QR codes have had a debatable start in the marketplace. Early excitement for the ability to combine mobile with other forms of media led to rampant use, but not enough early understanding on how they work (i.e. poor location placements on ads that could not be scanned – such as in tunnels underground with no data access). However, they are easy to execute. Until universal standards are set for NFC, QR codes are a solid option across the majority of mobile devices.

Bluetooth and Wi-Fi

Bluetooth and Wi-Fi capabilities are different from NFC and QR codes, as they push information out to consumers who have these options turned on. When the Bluetooth or Wi-Fi option is activated, the signal is recognized and a notification is submitted to device owners. Consumers can then click for more information which will lead to a video, mobile landing page, photos, coupons, etc.

Push notifications ignite concerns around interrupting the consumers. But Wi-Fi and Bluetooth deliver a unique opportunistic feature through location geo-fencing, connecting with consumers who enter a specific geographical zone. Marketers can create a branded experience with both mobile and DPB messaging within a predetermined atmosphere.

Here is a sample of tech platforms for DPB engagement extension programs.

Blue Bite (http://www.bluebite.com)

Blue Bite offers technological options including all those listed above. Blue Bite has also created permanent networks (Bluetooth and Wi-Fi networks built into malls) for DPB media owners that eliminate the need to install tech capabilities on a campaign-by-campaign basis.

Mobiquity (http://www.mobiquitynetworks.com)

Mobiquity has a tighter focus around Bluetooth and Wi-Fi capabilities. It is  a great partner for clients who prefer push-notification options, and can build out capabilities to blanket an entire venue where DPB screens are located or localize to the screen itself.

Thinaire (http://www.thinaire.net)

Thinaire supports all technologies listed here, but its sweet spot is NFC. Its analytics platform can track and report NFC engagements in real time. It allows NFC advertisers to leverage their data for insights on mobile consumer engagements, helping to optimize their mobile and digital place-based campaigns.

The ability to couple digital place-based screens with NFC, QR codes, Bluetooth and Wi-Fi technology drives engagement with a hard-to-reach audience – on-the-go people who are busy outside of their homes, and who are low TV watchers. By giving advertisers the opportunity to interact with this audience, DPB maximizes the opportunity for right place, right time messaging – increasing recall and awareness through an extended experience.

Two years before the iPhone and five years before any of us had a tablet, Shop.org coined the term Cyber Monday to describe the Monday after Thanksgiving as the online side of the Black Friday retail shopping surge. A 2005 press release explained that consumers were expected to head online in droves on Cyber Monday during work hours (where many had stable Internet connections) to take advantage of sales and holiday specials. That year, consumers spent north of $484 million in e-commerce on Cyber Monday. Fast-forward to 2012, where consumers spent $1.4B on Cyber Monday –over three times what they spent in 2005. It was the heaviest spending day in U.S. e-commerce history!

While Cyber Monday historically has been used to describe the online side of the retail shopping surge, the rise of connectivity and mobile devices is quickly blurring the lines between the traditional retail-focused Black Friday and online-focused Cyber Monday definitions. For example, last year was the first year that e-commerce sales broke $1B on Black Friday and many expect the lines to continue to blur.  In fact, Adobe predicts that within five years, Thanksgiving Day could surpass Black Friday in online sales. Today’s shopping experience is increasingly becoming  an omni-channel one, where innovative retailers are creating seamless shopping experiences across mobile, desktop, brick and mortar, television, etc.

While e-commerce (specifically on Cyber Monday) is expected to break records in 2013, the growth in mobile may be the real story. Last year was the first time Cyber Monday purchases made from at-home devices exceeded those made at work. This was largely attributed to mobile devices.  This year, mobile optimized retailers are expected to transact more than 20% of their holiday shopping via smartphones and tablets (a nearly 50% YOY growth). Today’s consumers are more connected than ever, using mobile devices to shop, compare prices and take advantage of sales and specials. In fact, 68% of shoppers intend to use their smartphones while holiday shopping.

The growth in mobile has resulted in traditional, online and flash retailers preparing for a big 2013 holiday season with mobile-first strategies. For example:

• Macy’s is positioning much of its holiday shopping experience around the mobile app, which allows consumers to view the retailer’s Black Friday specials and create customized and sharable shopping lists.
• Saks Fifth Avenue has built an integrated experience that involves users engaging with holiday window displays by designing their own snowflake and then adding it to existing snowflakes on the store’s window display.
• Gilt is building personalized “flash sales,” anticipating nearly 80% of their holiday shopping sales will be sourced through mobile purchases.
• Fashion merchant Cache reported that it has recognized that even email on mobile devices can play an important role in the holiday shopping strategy, as 70% of their shoppers view the retailer’s email promotions on their mobile devices.

With mobile playing such a prominent role in this upcoming holiday shopping season, it’s important for retailers to have sound holiday and mobile strategies.

Remember how wonderful holiday breaks felt like back in the day? After week-long all-nighters, countless cups of coffee and an arduous week of final exams and final papers, your brain was fried and your body was exhausted. The well-earned time to relax and put your feet up couldn’t come any sooner.

As you headed home, you would mentally prepare a “to-do” list that most likely included items such as: turning off your alarm, binge watching TV shows, packing for a long trip and/or catching up with friends and family. Did you ever think you would ever be able to create a list like that again?

Well, sabbaticals are Centro’s adult version of those holiday breaks! On top of our generous paid time off benefits, every Centron is eligible for three consecutive (and paid!) weeks off during their 5th, 9th, 13th and 17th year of service.

A sabbatical is a celebration of our peeps’ commitment to Centro and a way of showing our gratitude for dedication to this organization. The three weeks are intended to give the individual the opportunity to step away from the desk, refresh and fill that time-off with a “to-do” list similar to the one above. It’s an investment we are willing to make for our peeps to come back reenergized and check back in feeling personally fulfilled.

In the past, Centrons have spent this time volunteering, taking a long trip abroad, dedicating time for hobbies or projects or simply taking a “staycation” at home to unwind.

In 2013, we celebrated a whopping 15 sabbaticals – hey, it happens when you’ve been growing for 12 years and have a high employee retention rate. This upcoming year, we will have 36 Centrons taking their first sabbaticals and ten Centrons taking their second. Don’t worry, with our 400+ employees and continuous hiring, we’ve got the business covered.

This year, Katie Risch (SVP, Publisher Development) took advantage of her second sabbatical – check out her experience below.

Centro: Where did you go?

Katie Risch: Given I’m in airports and planes a lot for work, I stayed close to home and avoided all the stress and hassle that can come with travel! I spent much of my time in Chicago, Eagle River, WI and doing a roadshow around the Midwest to visit college friends in Louisville and Indianapolis on what I call “the baby tour” – visiting good friends whose babies I hadn’t been able to meet yet.

Who were you with?

KR: A bunch of peeps! I was in Chicago mostly with my boyfriend, Dustin. We went to Lollapalooza and took full advantage of the fact that I didn’t have to get up early for work. I bought tickets to after shows around the city four nights in a row (these typically end around 1 AM), and then attended three full days of the music festival. We were hardcore about seeing as much music as possible over the course of the week. In Eagle River, WI I spent time with my family. It’s beautiful up there and the perfect place to relax and unwind. On “the baby tour,” I saw my college friends and, of course, their babies! It wouldn’t be a baby tour without babies, right?

Why do you think Centro offers sabbaticals?

KR: Centro has a lot of employees who are committed to the betterment of the company. For those who’ve invested five years of their time, talent and energy into it, a sabbatical is a way to say ‘thank you’ and help them recharge so they can come back more energized to continue making this company a special place.

What advice would you give to someone who has yet to be eligible for their three weeks off?

KR: Check something off your bucket list. Whether that means travelling to a remote part of the world that requires at least two weeks off to get there and back and immerse yourself in the culture, or sitting on your back porch and starting to write a novel, or becoming certified as a yoga instructor. For me, my first sabbatical was a “bucket list” check mark. I went to Africa and got off the beaten path. My second sabbatical wasn’t about a bucket list item, but I would say to those who are about to embark on their first, do something that requires an investment of time that would not be achievable within a standard week-long vacation.

How would you spend your sabbatical? Write in the comments below and tell us!