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They say buying a home is one of the most emotional purchases you can make. We’re not sure if SNL nailed the exact emotion in this skit… but it’s safe to say that the entire process, from poking around at open houses to making an offer and beyond, is full of ups and downs.
Many prospective homeowners have likely felt the “downs” more frequently in the past decade-plus, as the economy has made buying a home—if not finding a place to live, period—increasingly difficult. First, during the 2009 housing bubble, homeowners sold off while mortgage rates plummeted. Then, during the 2020 pandemic, the available home supply dropped as construction costs skyrocketed and more people, especially millennials, entered the buying arena. Now, record-high home prices and increasing mortgage rates are causing many US adults to delay their homebuying plans, and the market has continued to cool.
And the economy is impacting more than just buying a home: Renters are struggling too, saying the rising cost of, well, everything is leaving them “cost-burdened.” Investors buying more properties is only adding to the competition, and economic factors make up at least half of the top issues affecting real estate agents today.
That said, there are still buyers, renters, investors, and real estate agents in the market right now, ready to make cash offers, go above asking price or forgo contingencies, and invest in the hopes of earning passive income. And for advertisers looking to reach these various audiences effectively, a fine-tuned, persona-based approach is critical—as long as it abides by the Fair Housing Act and other civil rights laws.
To that end, let’s get to know how four key real estate consumer personas look, sound, and feel as they research this major money move. At the same time, we’ll explore some strategies, shared by real estate marketing expert and VP of Integrated Client Solutions at Basis Technologies, Savannah Thrasher, for reaching each of these personas.
“I’m ready to settle down, and I’m researching until I know exactly what I want.”
With nearly 21 million potential buyers in the market, home sales are forecasted to reach 6.07 million this year. Most of those buyers are between the ages of 25 and 44, and are college graduates with household incomes of above $50,000—meaning they’re stable enough to borrow money at today’s rates. This group spans people who are single, married, or living with their partner, and have or don’t have kids, so from “starter homes” to “forever homes,” there’s not much on the market that this buyer group won’t consider. Size matters (not too big for a couple, not too small for a growing family), as does image, social status, and feeling influential among their friends and family, so the research process of potential home buyers starts early and stays intense.
Savannah Thrasher’s media recommendations: Getting in front of this segment throughout their process is key. Brands can reach and influence potential home buyers effectively by showing them trends and homes for sale, either contextually when they’re reading about homes and buying-related topics, via search when they’re looking in specific geographies, or on social media. Video ads provide additional time and space for messaging, as well as education and inspiration. Leveraging first-party data obtained from buyer inquiries, like scheduling a tour or downloading a brochure, means reaching a prospect with high intent. Finally, retargeting based on browsing activity could bring potential home buyers back through the virtual front door.
“I can’t keep up with the Joneses, but I like what I like…and one thing I’d like is a place to live.”
Renters—of which there are 72 million in the US—are definitely feeling the effects of the economy, often feeling like they can’t keep up with bills and financial commitments. Consumers in this group skew younger than the potential home buyer audience, falling between the ages of 18 and 44. They’ve likely completed some college, have a household income between $20,000 and $60,000, and may be single or divorced. Despite financial stress, they’re willing to spend in an effort to experience life to the fullest, and typically only save for very important and specific purchases. This group is made up of early adopters who influence their friends, and they love what’s hot, meaning they’ll switch brands if it makes them look cool.
Savannah Thrasher’s media recommendations: With so much competition in this space, to connect with renters who plan to continue renting, rental communities should strive for top search placements using custom keywords within their geographies. In fact, a hyperlocal advertising approach makes sense, since this segment is often looking for apartments or units within a comfortable radius of their colleges, employers, or families. Businesses that balance what’s trendy and what’s inexpensive are more likely to win with this segment. Modern, diverse, and inclusive messaging will catch their attention, and communicating about deals and offers that are financially beneficial is key.
“I worked damn hard for my money, and now it’s time for my money to work for me.”
The nearly 11 million investment property owners in the US skew older and appear more established than many of their counterparts: They’re ages 45 and older, they’re often married, and they’re college graduates with household incomes of $100,000 and above. What they do with that money, especially regarding real estate, can be a bit riskier, but can also come with higher rewards. That’s because they’re financially secure, and enjoy educating themselves on topics like real estate and finance so they can own their expertise. They also enjoy showing off the fruits of their labor: Their homes and their wealth are signifiers of social status.
Savannah Thrasher’s media recommendations: Like other segments, investors can be reached via paid search as they hunt for their next property, and contextual targeting can place ads next to the financial content this group craves. Beyond that, more premium inventory through private marketplaces specific to business, finance, and investments creates a high degree of relevance. Plus, this group is loyal and trusting, so brands that advertise luxury, details, and both physical and fiscal comfort may see repeat business and a high ROI on their advertising spend.
“I love helping my clients find their dream home…so why not get one for myself?”
While real estate agents may not be the first consumer persona you think of when you hear “property buyers,” someone has to sell to them! With about 3.5 million real estate agents in the market for a home of their own, and with prospective buyers willing to take risks in hopes of winning big and impressing others, real estate agents are a viable audience to target. They’re between the ages of 25 and 64, married or engaged with kids, with some college but also specialized education in their field, and with household incomes over $100,000. Most importantly, they love what they do: They take pride in their careers and in being trusted resources for buyers. They work hard—days, nights, and weekends—but it’s a sacrifice they’ll make for the financial reward and to be the “host with the most” for their clientele.
Savannah Thrasher’s media recommendations: Between the information they need to sell homes and their sophistication when it comes to buying one (or two, if a vacation home is the right fit), brands should emphasize quality, price, and the know-how it takes to be a productive agent. Reaching agents with job title targeting, as well as geotargeting real estate offices for those moments when they’re on site, and then gearing messaging toward them, can pay dividends.
While the economy has shaken the real estate industry’s foundation, people are still eager to find a home, whether that’s via purchasing, renting, or investing in real estate. And while these consumer personas may vary in demographics and values, their processes are similar: Research, accompanied by emotion, followed by decision—all of which can be influenced by a marketing campaign that finds prospects where they are, speaks to their motivations, and builds trust from consideration to closing.
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If you’re looking to connect with one or more of these personas, advertising automation can help your team get more granular and efficient about reaching them in all the spaces where they spend their time. Download our guide to learn about all the ways these technologies can make your campaigns work smarter and move you closer to your business goals.
Welcome to Scout! Each week, our team tracks down the best digital marketing articles, POVs, and reports—so you don't have to. Here’s what to read from the week of 8/18/23 - 8/24/23 to stay ahead of the curve:
A new report detailing ad spend across streaming platforms like Max, Roku, and YouTube says that June was a record-setting month for CTV advertising. Surprising? Not necessarily, especially given how the writer’s and actor’s strikes are impacting linear TV.
Talk of generative AI is everywhere, but are you wondering how advertisers are actually implementing it in their work? This regularly-updated roundup details how agencies, holding companies, and consultants are using GenAI.
This is a must read, especially in light of recent legal developments: Digiday looks back at the history of consumer privacy regulation to predict how the use of generative AI in advertising may develop and become regulated.
AI has come a long way, but one thing it still can't do is replace the human marketers running programmatic campaigns. Until that day comes, marketers will need to assess what programmatic approach is right for their brand—whether it's outsourcing, in-housing, or somewhere in between. This piece lays out everything those marketers need to know.
Show off your marketing chops with our question of the week. This week’s hot topic: Brand safety.
What percentage of industry professionals think generative AI poses a brand safety and misinformation risk to digital marketers?
A. 77.6%
B. 99.5%
C. 81.9%
D. 65.5%
Get the answer, plus a rundown of brand safety threats on social media and how to deal with them, right here.
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In the formative years of programmatic advertising, second-price auctions were the industry standard—a crucial component in helping build the online ad marketplace as we know it today. Much like eBay, ad exchanges saw second-price auctions as a better, more accurate valuation of publishers’ inventory.
This all changed back in 2017, though, as the major exchanges began either rolling out or experimenting with first-price auctions, culminating in Google joining the pack in 2019. It was an industry-wide move largely dictated by increasing calls for greater transparency into the bidding process and reduced operational complexity. The programmatic ecosystem was essentially becoming so difficult to navigate within a second-price framework that the market needed a switch.
One of the manifestations of this evolution was bid shading—an AI-powered optimization tactic designed to help media buyers reduce wasted ad spend in the new auction dynamic. Here, we break down some of the lingo surrounding bid shading and explore how it’s applied in the digital advertising industry.
Second-price auctions refer to a model in which the buyer pays just $0.01 more than the second-highest bid on an impression (think the eBay model). For example, if two buyers bid $10 and $5, respectively, then the buyer who bid $10 will win the impression—but they’ll only pay $5.01. In other words, it is the second-highest bidder that determines the clearing price… in theory, that is. The problem with this bidding framework (and why it has largely been shunned by the digital advertising industry) is that some ad exchanges aren’t truly operating on the second-price framework. Each exchange has its own variation on the model with nuances that don’t offer full transparency (think price floors, hidden supply-side fees, and advertising subsidies).
In a first-price framework, the auction will clear at the winning bid price outright. Meaning: if a buyer bids at $10 and the next highest bid is $5, the winning buyer will pay the full $10. While this represents a more attractive model for publishers, advertisers may find themselves overspending and paying an increased average cost per 1,000 impressions (CPM). As such, advertisers need new tools that empower them to bid more effectively and intelligently.
Enter bid shading.
A compromise between the two models, bid shading is an optimization tactic available in most enterprise demand side platforms (DSPs). It works by analyzing historical bid data, then automatically forecasting a winning bid that is lower than the default bid (though likely more than just $0.01 above the next highest bid). For instance, if buyer A bids $10 and buyer B bids $5, buyer A might pay $7.50 rather than the full original value of their bid.
Before this tactic emerged, advertisers bidding in first-price auctions needed to either bid high and potentially overspend on an impression or bid conservatively and potentially lose the impression. By activating bid shading, media buyers can unlock two critical things:
Easy: any agency or brand (regardless of industry) looking to gain more efficient CPMs.
Yes, bid shading works with a range of other optimization tactics, including algorithmic optimization (AO), machine learning optimization (MLO), and group budget optimization (GBO). Bid shading aims to decrease the bid price without changing what any of those tactics are optimizing towards. This keeps the probability of winning the auction high enough that it will not compromise pacing and target budgets. Additionally, if advertisers have manual optimizations on domains and placements, the manual bid price applies first, and then bid shading takes effect.
Supply path optimization (SPO) is another name for the algorithms that DSPs use to make sure they're bidding on the most relevant, highest-quality, and most valuable inventory available from supply-side platforms (SSPs). When it comes to the economic facets of of SPO, bid shading can be a key tool, helping DSPs ensure they are paying the lowest possible amount on any given bid and, potentially, eliminating SSPs that don't provide second-price auctions—all to ensure optimal value.
Yes, digital advertisers can use bid shading with PMP deals.
Bid shading generally leads to a more efficient CPM, delivering more impressions and potentially increasing ad serving fees and impact pricing. As such, buffering ad serving fees is recommended.
No, though advertisers that use a default CPM of $1 or greater are more likely to see positive results.
At the most rudimentary level, bid shading algorithms analyze past placement clearing prices, compare them to what a buyer is willing to pay, and then make their best estimation at the lowest price the buyer could submit to win the auction. That said, there are many other factors that could inform the logic—including ad size, floor prices, domain information, time of day, win rates, placement on page, and user data—and every DSP goes about determining the final bid in a different way.
As the programmatic advertising landscape continues to evolve, so do the problems that come with it. The industry’s broad shift from second- to first-price auctions was one such problem that media buyers needed to contend with, and DSPs had to move quickly to assuage the price surges that surfaced from the move. Bid shading was the result.
Today, the tactic is widely adopted, and it represents a great example of just how important automation is in modern advertising. It helps advertisers save time, reduce menial manual tasks, and optimize eCPM leads to deliver better results.
Want to learn more about advertising automation? Check out our guide to see why automation is essential to the future success and long-term growth of the media buying industry.
Welcome to Scout! Each week, our team tracks down the best digital marketing articles, POVs, and reports—so you don't have to. Here’s what to read from the week of 8/11/23 – 8/17/23 to stay ahead of the curve:
Alas, poor Threads, we hardly knew ye. Less than two months after its triumphant debut (when it racked up 100 million new users faster than any app ever), Meta’s Twitter X clone has seen its daily active users plummet by 79%, causing brands to reconsider their commitment to the as-yet ad-free platform.
Are made-for-advertising sites (aka MFAs) good or bad for advertisers? MFAs have been getting more attention lately—attention that generally makes them out to be the villain. But the reality is a bit more complex, with many marketers arguing that these sites can serve a purpose...provided there are appropriate mechanisms in place to ensure transparence and quality control.
The news may be abuzz about the proposed cage match between social media titans Elon Musk and Mark Zuckerberg. But social media advertisers? They’re already in the ring with a whole host of threats to brand safety. This piece details the ongoing cage match between advertisers and social media’s brand safety risks, as well as strategies for advertisers to come out on top.
Got a minute? Linear TV could use it: For the first time, time spent watching linear TV has dipped below the 50% mark. Analysts say this won’t change much for advertisers, as they’ve been investing in digital media’s “better targeting and tracking capabilities for years.”
Show off your marketing chops with our question of the week. This week’s hot topic: Marketing technology.
Approximately what percentage of B2B marketers plan to spend more on martech this year?
A. 15%
B. 25%
C. 45%
D. 75%
Get the answer, along with insights on impactful tech solutions and how best to evaluate them, right here.
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What a strange time we live in. Congressional hearings about aliens, traumatized orcas attacking boats, TikTokers making thousands per day doing whatever this is…
So, what’s next? A cage match between two of the wealthiest and most influential people in the world?
This proposed cage match between Elon Musk and Mark Zuckerberg is a news story that’s just too bizarre to ignore—and given that it would take place between two social media titans, it got us thinking about who social media marketers are currently in the ring with. One of the main opponents that comes to mind: the dizzying and ceaseless swarm of brand safety threats, including hate speech, misinformation, and disinformation.
So, whether you care about the feud between Musk and Zuckerberg or not, allow us to use this outlandish spat as an opportunity to explore the ongoing cage match between advertisers and social media’s brand safety risks. Even more, we’ll hand you all the tricks you’ll need to emerge victorious.
As advertisers know well, brand safety is no joke: the consequences of your ad running next to the wrong kind of content are pretty terrifying. But don’t worry, we’ll use the Musk vs. Zuck cage match to lighten the mood of this rundown—after all, the idea of two billionaires duking it out inside a cage is pretty darn funny. So for those who aren’t familiar, here’s the setup:
It all started with the news of Meta’s plans to release Threads, a platform the company described as their "response to Twitter." Shots fired!
Musk responded to the news with a simple post on X (formerly Twitter): “I’m up for a cage match if he is lol.” Zuckerberg then posted Musk’s challenge to his Instagram story, adding the text “Send Me Location.” While Zuckerberg initially proposed August 26 as a date to hold the match, he has since said it’s unlikely to happen at all (not even at the Colosseum).
So while the cage match between Zuckerburg and Musk is purely hypothetical at this point, social media advertisers still face a very real opponent: threats to brand safety on social media thanks to misinformation, disinformation, and hate speech.
Social media presents some unique brand safety challenges to digital advertisers due to how quickly hate speech, misinformation (false information), and disinformation (false information that is “deliberately intended to mislead”) can spread on the platforms.
Social media algorithms are designed to deliver content that's most likely to trigger user engagement. And according to an analysis from advocacy group the Integrity Institute, “content that contains misinformation tends to get more engagement–meaning likes, views, comments, and shares–than factually accurate content.”
The content in question could be as bizarre as an image of Pope Francis wearing a very stylish Balenciaga puffer jacket, or as harmful as false news stories about political candidates. In fact, both liberal and conservative lawmakers have proposed bills designed to hold social platforms accountable for the impact of the amplification of hate speech, misinformation, and disinformation, because of the disastrous effects that amplification can have.
While lawmakers, advocacy groups, and social media users have gained fluency around the spread of hate speech and misinformation on social media over the past few years, the explosion of generative AI will likely only stoke the fires. In fact, OpenAI, the company that created ChatGPT, has expressed concern over the tool’s potential role in spreading mis- and disinformation multiple times, and industry researchers say these tools will make it easier to create believable false content, such as a fake article written by ChatGPT accompanied by a fake accompanying photo generated by Midjourney.
Why? Generative AI tools can quickly create large amounts of false and misleading content for free. Like this, for example:
For brands advertising on social media, the situation presents some significant concerns, with 99.5% of industry professionals saying they believe generative AI poses a brand safety and misinformation risk to digital marketers. And the consequences of brand safety missteps can be dire: 65% of consumers report that they are “likely or very likely to stop buying from a brand that advertises next to misinformation”; and 73% of consumers “agree or strongly agree that they would feel unfavorably towards brands that have been associated with misinformation.”
All in all? The presence of hate speech, misinformation, and disinformation on social media is a formidable opponent for advertisers. It’s kinda like facing down this guy. But don’t worry, the match isn’t over yet! In period three, we’ll share how advertisers can defend themselves against these threats.
Who's to say what a cage match between Zuck and Musk would look like. Would Elon use his signature move, the “Walrus”? Would Zuckerberg’s jiu jitsu skills take Musk down in seconds? Though strategies for this hypothetical cage match are still forthcoming, there are some clear steps social media marketers can use to stand up against their opponent and come out on top—like this:
First, it’s important that brands prioritize investing time in continuous social media monitoring. By keeping a close eye on your social media presence, you're more likely to spot (and delete) harmful content before consumers start to associate it with your brand. To do this effectively, organizations must train their people to better identify hate speech, misinformation, and disinformation so that they can proactively monitor all the brand’s social pages, posts, and ads for problematic content. While hate speech should be fairly easy to spot, there are a variety of resources that outline how to identify mis- and disinformation as well as fake media (guides from NPR and the Washington Post can be good places to start). This should be an ongoing learning process for your team—especially as AI continues to develop.
Next, it’s always helpful to find technological solutions to help fight the problem on your behalf. Tools like NOBL—which use natural language processing and machine learning algorithms to help advertisers find high-quality, brand safe inventory—can be a great way to ensure your brand steers clear of risky and disreputable real estate across the programmatic landscape.
Finally, while it’s never fun to think about, you should be sure to have a plan in place for if and when your brand is linked with harmful social content. That plan should focus on clearly condemning the false or harmful content in question—an essential step, as research shows that consumers will perceive a brand more positively if it actively denounces misinformation.
Regardless of whether or not Zuck and Musk ever find themselves duking it out in a cage, advertisers can train for their ongoing match by deeply understanding brand safety threats on social media, and then using our three-step method to clobber them. Just remember that this adversary is still developing: As social media platforms change and generative AI evolves, these threats (and the best ways to protect yourself against them) will continue to change as well. And as the old saying goes, the best defense is a good offense, so be sure to so keep tabs on this rival to ensure it doesn’t hit you with any underhanded maneuvers when you least expect them!
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Generative AI is disrupting the world of marketing in more ways than just its role in the spread of misinformation. Learn more about GenAI’s benefits to marketers and advertisers in our report, Generative AI and the Future of Marketing.
Think market conditions are slowing investment in marketing? Think again.
Even in the face of persistent inflation and economic uncertainty, businesses are prioritizing their martech and adtech stack(s). More than three-fourths of small and midsize US businesses say they’re preparing to invest in marketing tech tools in the next 12 months, and while close to 40% of B2B marketers are facing budget cuts, nearly 45% of those same marketers are planning to spend more on martech this year.
It may seem counterintuitive at first, but once you start to think about it, it makes perfect sense: Marketing and advertising technologies are designed to improve efficiency, save time, and free up staff for more complex work. If you want to accomplish more with less budget, investing in martech and adtech can help you accomplish just that.
But for marketers interested in onboarding new technological solutions, there’s a lot to evaluate. With more platforms and systems popping up seemingly every day (have you checked out the marketing technology LUMAscape lately? Phew!), how do decision-makers sift through and evaluate which ones will have the biggest impact on their business?
To find out, we talked to two marketing thought leaders at Basis Technologies: Katie Risch, Chief Marketing Officer, and Jeff Mathews, VP of Growth Marketing. Read on for their expert insights on some of the tech solutions that are proving impactful for brands and agencies across the board, as well as a rundown on how to evaluate which technologies will best complement your people.
Katie Risch: There are four areas I believe marketers should invest in from a technology standpoint:
The first is advertising, and ensuring you’re selecting a platform that is built to support RTB, direct, social, and search ad buys all through one interface, and that can provide holistic reporting across all advertising so you can get a single view of your ad performance.
The second area is data management. Ensure you are set up to capture and activate media buys against your CRM so that when cookie deprecation hits, you’re prepared to still engage with your audience in a direct fashion.
The third area is project management. Having a project management tool that captures all marketing projects and tasks and can keep your team organized and efficient is critical if you want to scale, while also building accountability into the way you work.
The last area is AI. Identify which generative AI tools would be most beneficial to your team to help them ideate and move faster. This can best be accomplished by having your team start to organically test different tools before going all in with one.
Jeff Mathews: When figuring out the best adtech and martech solutions for your company, you’ll want to customize your selections based on your specific objectives and industry environment. This is an ever-changing landscape, so focus first on leveraging key foundational platforms off of which you can build the rest of your tech stack. For instance, making the most of your CRM system is key, and that involves ensuring you have reliable and accurate data about your target accounts and contacts to work with, as well as routine data hygiene practices.
Once you can safely and confidently rely on your data, you can start acting on it by adopting marketing automation platforms to develop smoother workflows and email marketing strategies, as well as advertising tools to help you spend your budget wisely, creating brand awareness and demand for your product and services with your targeted audiences.
Data analytics platforms are also extremely important in helping you track and measure your success and more easily identify gaps in your strategy. As you become a more sophisticated operation, that data will also inform what other types of technologies you might need in your stack to fill in holes in your strategy or maximize performance in specific areas.
KR: Ensure you know what problem it is you’re trying to solve for. Identify which of those problem areas are the highest priority and would benefit the most from technology, and then tailor your budget accordingly. There tend to be a lot of one-off requests for different tools throughout a calendar year, but if you come in knowing the problems that need the most immediate attention, you can develop a well thought out process to vet and test various tools before deciding on a solution.
JM: It's easy for marketers to rush into adopting new technology with hopes it will solve all their challenges. However, successful marketing leaders know the key is in strategic decision-making. First, identify your unique needs and objectives, which will guide your technology choices effectively. Collaboration is essential; gather insights not only from your team, but also from experts across the business within the sales and revenue operations departments. Prioritize scalability, integration, and vendor reliability. If you’re still unsure, start small, ensuring alignment with long-term goals. By taking these steps, marketing leaders can make tech adoption a success story that enhances their team's capabilities and drives significant outcomes, while avoiding unnecessary additions to their toolkit.
It’s not such an overwhelming process once you break it down, right? While there’s likely a bit of extra stress around investing in new adtech and martech solutions in today’s uncertain economic landscape, by considering the solutions and processes Katie and Jeff outlined above, marketers can ensure a smooth transition towards business growth, improved efficiency, and happier employees, to boot.
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One of the tech solutions marketers are thinking about most right now is generative AI—and if you’re wondering how marketing and advertising professionals are using this technology, you’re not alone.
We surveyed over 200 marketing and advertising professionals to get a pulse on how your peers feel about generative AI’s uses and risks, and how they predict it will develop in coming years. Check out our brand-new report, Generative AI and the Future of Marketing, for all our top takeaways.
Sparkly pencil pouches. Crisp new planners. Notebooks stacked meticulously by color. Aisles filled with crayons, colored pencils, glue sticks, and lunch boxes as far as the eye can see. Ah, the rush of back-to-school shopping!
For many brands, this time is almost as exciting as it is for students. Back-to-school shopping provides opportunities for high customer engagement, increased sales, new product releases, and more.
Because the season offers so much potential, it’s critical for marketers to aim for straight A’s in their back-to-school campaigns. As such, we’re here to outline some key strategies retail marketers can use to get top marks.
Ready? Grab a seat, pull out your notebook and find your favorite new pen—class is in session!
The difference between an 8th grader and a freshman in high school is a significant one (don’t believe us? Find one, they’ll tell you!). And just like students can change drastically from year to year, so too can the audiences that advertisers are trying to connect with. As such, it’s important to understand who your audience is right now.
We know, we know: This is true for any campaign. But for back-to-school campaigns, it’s especially important to understand your audience and the ever-changing factors that are influencing them. This includes demographics, behaviors, pain points and needs, motivations, and preferences, as well as additional factors that shift from year to year.
Perhaps the most significant factor to consider in 2023? Economic uncertainty. Sure, inflation is easing up and layoffs are decreasing. But interest rates continue to climb, and consumers are still worried about rising prices and job security. Couple that with the fact that payments on federal student loans will resume in October—which will have a notable impact on many millennial parents—and it’s no surprise that consumer behaviors are different this year.
Just how is this economic uncertainty shifting consumer habits? For one, people are financing their back-to-school purchases in new ways: An increasing number are opting to use “buy now, pay later” plans, or to purchase on high interest credit cards. Both payment methods signal that shoppers are feeling cash strapped, that they don’t have a lot to spend on unnecessary items, and that they are likely to prioritize value over brand loyalty.
Which leads us to our next key strategy for back-to-school campaigns in 2023:
Brand and store loyalty take a backseat during key shopping periods when wallets are tight. So, given today’s economic uncertainty, it’s especially important that brands use their media campaigns to highlight the value that consumers get by purchasing at their store or buying a specific product.
This focus on value carries more weight than ever today and can come into play in multiple ways in a campaign. One such way is to signal a percentage off opportunity, a bundling opportunity, or other savings incentives associated with your brand or product. And while offering discounts can drive conversions, it’s not the only way to communicate value. Brands can also offer options that prioritize convenience—such as the aforementioned buy now, pay later plan or a buy online, pick up in-store option. Yet another way to lead with value? Speak to product quality. If your brand can offer a durable item with easy pick-up and returns, be sure to make that clear to shoppers this back-to-school season.
By offering and emphasizing value—in terms of cost savings, product quality, and convenience—brands can help alleviate some of the pressures of today’s economic uncertainty for families, which can help foster positive brand perception both during and beyond back-to-school campaigns.
“This is all well and good,” some marketers might say. “But our team planned and launched our back-to-school campaign already. What can I do?”
We’re so glad you asked! Much like students can’t simply rock their first test of the year and then coast through the rest of the semester, marketers’ jobs aren’t done once their back-to-school campaigns go live.
August is prime time for back-to-school shopping—which means it’s also prime time for marketers to optimize their campaigns regularly to ensure strong media impact. Using data to inform your decisions, here are some of the areas you might consider optimizing:
Beyond optimizing their campaigns, it’s also a great time for marketers to ensure they have reporting set up in a way that keeps data clean and organized. That way, they can leverage insights in campaigns later in the year, as well as develop insights on media performance to get a head start on strategies to win during next year’s back-to-school efforts.
For marketers working on back-to-school campaigns, it’s important to have a holistic understanding of target audiences, and to understand the unique factors at play in this moment. By seeking to understand your audience deeply, your team can better meet your target consumers’ needs.
In 2023, this likely looks like leveraging value-first messaging to show consumers why they should opt for your brand or product, especially amidst today’s economic instability. Beyond this messaging, marketers can further level up their back-to-school campaigns by ensuring they are optimizing throughout the entirety of the campaign, and by setting up reporting in a way that makes data easy to use to inform future campaigns. By utilizing these strategies, marketers can ensure their back-to-school campaigns are as big of a hit as pizza day in the cafeteria.
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We know that in addition to optimizing their back-to-school campaigns, marketers are in the process of planning their holiday campaigns. To keep you sane during this busy time of year, we created The Digital Marketer’s 2023 Holiday Advertising Checklist. This ultimate checklist covers everything you need to know to ensure a successful 2023 holiday season—including key dates to plan for, how to leverage data, goal-planning, and more.
Welcome to Scout! Each week, our team tracks down the best digital marketing articles, POVs, and reports—so you don't have to. Here’s what to read from the week of 8/4/23 - 8/10/23 to stay ahead of the curve:
Sometimes, Generative AI can feel a bit like magic. But while AI is an exciting opportunity for the industry, some prominent agency leaders say they’re seeing a lot of hesitance from clients who are hypersensitive to GenAI’s risks and want to know for themselves just how that magic trick works.
Ads at the movies? Nothing new. But programmatic ads at the movies? That’s what National CineMedia has planned. Starting in Q4 this year, the cinema advertising company will sell movie screen inventory through programmatic guaranteed and PMP deals, as well as on the open exchange through vendors like Place Exchange—a programmatic SSP for digital out-of-home and place-based media.
Meanwhile, if you’d rather connect with consumers eating their popcorn at home, a new study shows that the majority of streaming TV viewers prefer to watch ads to save $4–$5 per month on their subscription fee. Cost savings are great, but viewers are also praising Max, Disney+, and Netflix for delivering a better ad experience compared with their competitors.
Content-level transparency has long been commonplace in linear TV, but it’s still mostly absent from CTV ad buys…for now. Many publishers have begun moving toward providing genre-level (or even show-level) data to buyers post-campaign, and with Hollywood labor strife threatening the 2023-2024 TV season and fueling a slow upfronts buying cycle, the time may be right for an uptick in transparency.
With more and more states legalizing marijuana, the cannabis market boom is in full swing. Curious as to what 2023 pot proponents have in common, and what drives their decision-making? This piece has seven smoking hot insights on cannabis consumer perceptions, behaviors, and personas to pass your way.
Show off your marketing chops with our question of the week. This week’s hot topic: digital ad spend in B2B advertising.
In 2019, what percentage of total B2B ad spend was dedicated to digital channels?
Get the answer, plus expert insights on what B2B marketers should know in 2023, right here.
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It’s been less than a decade since the cannabis adult-use market opened up in Colorado in 2014. In that time, medical cannabis has been legalized in 37 states and Washington DC, while recreational marijuana has been legalized in 23 states, plus our nation’s capital. And as policy has evolved, so too have the behaviors of cannabis consumers.
Curious as to what these pot proponents have in common and what drives their decision-making? We’ve got you covered: Here are seven things marketers should know about cannabis consumer perceptions, behaviors, and personas in 2023:
The public continues to favor cannabis legalization for medical and recreational purposes. A huge share of US adults—nearly 9 in 10—say that marijuana should be legal in some capacity, either for medical and recreational use by adults (59%) or for medical use only (30%). Just 1 in 10 say marijuana use should not be legal.
This combined governmental and grassroots support is resulting in even more markets opening up as well as cannabis consumer numbers increasing. In fact…
As more states legalize or decriminalize marijuana use, the legal US cannabis market is expected to grow 12% by the end of 2023 to $29.6 billion. By 2027, that number is projected to increase to $45 billion in total legal sales. The biggest drivers of cannabis industry growth will be new adult-use markets like Missouri, New Jersey, and New York, while mature western markets like Colorado and California, despite a post-Covid sales correction, will still account for a large portion of legal sales through 2027.
Dispensaries that advertise in those new markets should focus on building the awareness needed to light up initial business. Pro tip: One channel that more and more cannabis brands are spending on to spread that awareness? Digital out-of-home.
In a survey of more than 5,300 US adults, 42% of respondents said they’ve used cannabis in 2023, up from 39% in 2022. Most consider themselves recreational users (58%), as opposed to medical users (42%), but 53% say they consume for both reasons. Also tracked was their frequency of use: 31% of user respondents reported cannabis use multiple times a day, with another 12% using once a day, 21% a few times a week, 5% once a week, and 11% a couple of times a month.
The forecasted increase in cannabis use will provide a big opportunity for advertisers to gain new customers. Meanwhile, leveraging first-party data to apply tactics like retargeting will help brands to encourage repeat sales.
From Cheech and Chong to Harold and Kumar, the “stoner dude” persona has hung over marijuana users like a dark cloud. But recent data shows that cannabis consumption is truly spread across consumer demographics, behaviors, and life stages.
From those who use cannabis recreationally, to those who rely on it for medical purposes, to users more interested in CBD, there's a variety of personas spanning ages, genders, races, incomes, marital statuses, and education levels. (Want a deeper dive? Check out our piece on cannabis consumer personas.)
Trends in marijuana use vary by demographic, too. According to Gallup trends, 26% of adults ages 18 to 29 indicated they smoked marijuana between 2019 and 2022, up from 17% between 2013 and 2015. Marijuana use has also climbed among adults ages 30 and 64, but has been stable (at a comparatively low level) among senior citizens.
And the “dude” part of “stoner dude” continues to apply less: A Harris Poll survey found that 37% of American women ages 21 and older use cannabis, with more than 1 in 4 women using it at least once a month, primarily for anxiety relief, better sleep, and alleviating pain.
With so many cannabis consumer segments to connect with, leveraging an automated, omnichannel advertising approach can both increase efficiency and effectively find customers where they spend their time. And, targeting prospective consumers who look like these personas is a great way to tap into additional audiences.
With myriad ways to use cannabis both recreationally and medicinally, it’s key to keep track of how consumers are engaging with various product types. In 2022, cannabis tinctures, topicals, capsules, and flower sales declined, while sales spiked for beverages, edibles, vapes, and pre-rolls. This product category shift may reflect the increase in recreational users, who prefer more portable and shareable products.
Given all the ways to consume cannabis and all its stated benefits, what factors are influential in choosing a cannabis product? In a recent study, when asked to rank their two most important considerations, most respondents (60%) said “THC level”—a 9% increase from the year prior—with “price” ranking second at 58%. When it comes to price, 39% of customers are purchasing less expensive alternatives this year to maintain consumption levels while reducing cost. However, when asked, “How much are you spending on cannabis compared to a year ago?” 73% stated that they are actually spending about the same or more.
As of now, cannabis advertisers are cautioned against mentioning potency or price in their ads. Instead, advertisers should focus on their brand values as well as what sets their brand and products apart.
All that shopping around to compare prices comes at a cost to brands’ customer loyalty. In the past, branding and strain type were significantly more important to cannabis consumers. Today, those consumers are showing less brand loyalty, increasingly shopping around to save money.
Since it costs less to keep a customer than to earn one, cannabis companies that collect and activate first-party data from satisfied customers may find success reaching back out via advertising to stay top of mind as those shoppers are price-hunting.
The cannabis industry continues grow like a weed, and ongoing support for its legalization is anything but smoke and mirrors. Cannabis marketers who can capitalize on that growth—finding cannabis users and speaking to their behaviors, preferences, and motivations for using their favored products, in a highly compliant way, of course—could see an increasing amount of another green inside their cash registers.
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To learn more about cannabis consumers, how marketers can navigate state-by-state cannabis advertising regulations, and how to set your campaigns up for success, it’s high time you checked out our cannabis advertising guide, Cannabis Marketing in the Roaring 2020’s.