Consumer reviews are important to online shoppers. So, are more people participating now?

Based on new research, the time-honored “90-9-1 rule” may no longer be accurate.

The 90-9-1 rule states that for every 100 people active online, one person creates content … nine people respond to created content … and 90 are merely lurkers – consuming the information but not “engaging” with it at all.

But now we have a survey by ratings and reviews platform Clutch which suggests that the ratio may be changing. The Clutch survey finds that around 20% of online shoppers have written reviews for some of their purchases.

That finding would seem to indicate that more people are now involved in content engagement than before. Still, when just one in five shoppers are writing and posting customer reviews, it continues to represent only a distinct minority of the market.

So, the big question for brands and e-commerce providers is how to encourage a greater number of people to post reviews, since such feedback is cited so often as one of the most important considerations for people who are weighing their choices when purchasing a new product or service.

A few of the ways that businesses have attempted to increase participation in customer reviews include:

  • Make the review process as efficient as possible by requesting specific feedback through star ratings.
  • Provide additional rating options on product/service performance sub-categories through quick guided questions.
  • Offering incentives such as a contest entry might also help gain more reviews, although the FTC does have regulations in place that prohibit offering explicit incentives in exchange for receiving favorable reviews.
  • Providing timely customer service – including resolving products with orders – can also increase the likelihood of garnering reviews that are positive rather than negative ones.

This last point is underscored by additional Clutch results which, when the survey asked why online shoppers write reviews, uncovered these reasons:

  • Was especially satisfied with the product or service: ~33%
  • Received an e-mail specifically requesting to leave feedback: ~23%
  • Was offered an incentive to leave feedback: ~5%
  • Was especially dissatisfied with the product or service: ~2%

For companies who might be concerned that negative feedback will be given lots of play, the 2% statistic above should come as some relief. And even if a negative review is published, the situation can often be rectified by reaching out to the reviewer and providing remedies to make things right, thereby “turning lemons into lemonade.”

After all, most consumers are pretty charitable if they sense that a company is making a good-faith effort to correct a perceived problem.

QR Codes Live!

In marketing, QR codes have been the butt of jokes for years. The funky little splotches that showed up in advertising on everything from magazines to transit buses were supposed to revolutionize the way people find out information about products and services.

Except that … QR codes never lived up to the hype.

While a few advertisers stuck with QR codes doggedly, for the most part we saw fewer and fewer of them after their first initial years of splash.

But now, QR codes are making a comeback. It turns out that they’ve become central to mobile marketing tactics.

We’re talking about QR couponing, which is exploding.  Newly published estimates by Juniper Research, a digital marketing consulting firm, show that nearly 1.3 billion coded coupons were redeemed via mobile devices in 2017.

Moreover, Juniper is forecasting that the number of coupons with QR codes being redeemed via mobile devices will continue strong at least through 2022.

A big reason for the sharp increase in use is built-in QR functionality on smartphones – led by Apple which has begun including QR reader functionality as part of the camera application on its new iPhones.

This action takes away a huge barrier that once confronted users. The lack of in-built readers meant that consumers had to download a separate QR code scanner app.

We know from experience that one more action step like that is often the difference between market adoption and market avoidance.

But with that hurdle out of the way, major retailers are starting to take advantage of the more favorable playing field by finding more uses of QR code technology. Target for one has announced a new Q code-based payments system to scan offers directly to their device-stored payment cards, which can be scanned at checkout for instant payment.

Expect similar activity in loyalty cards, making their redemption easier for everyone.

The newly revived fortunes of QR codes remind us that sometimes there are second acts for MarComm tactics and technology – and maybe it happens more often than we expect.

Changing Cross-Currents in E-Mail Marketing

Many marketers find it one of the easiest marketing tactics to execute … but also one of the least effective in terms of results.

In the realm of digital marketing, e-mail marketing has to be one of the most mature choices of tactics these days. It’s been around for a long time, and its relatively small hard-dollar costs make it one a natural “go-to” marketing tactic for many companies.

But today, a declining percentage of marketers see e-mail as one of their most effective tactics in the digital marketing arsenal.

So, what’s the problem?  Many companies have the technology and skills in place to perform e-mail programs using in-house resources. That’s the good news.

The not-so-good news is that more companies are seeing their e-mail programs becoming less effective — for a variety of reasons. Among them are these:

  • E-mail filtering technology is making it more difficult to land e-mails into inboxes.
  • Privacy regulations are becoming more stringent.
  • Overuse of this marketing tactic means more e-mail messages than ever from more companies are being deployed – and with that, more of them are being ignored by recipients.
  • While e-mail used to be the only digital direct marketing game in town, today there are a bigger variety of ways to engage with customers and prospects.
  • Building a high-performing e-mail list that also conforms to regulatory stipulations is more challenging than ever.

This last point is particularly nettlesome for marketers: Data quality and data management are considered among the most difficult challenges for marketers – and also among the least effective in terms of their success.

So, in some ways the factors affecting the use of e-mail marketing are working at cross-purposes. E-mail marketing is easier to execute than other digital marketing endeavors … but as for its effectiveness, many marketers rate other tactics higher, including content marketing and search engine optimization.

In the coming years, it will be interesting to see how attitudes and behaviors regarding e-mail continue to evolve. Will this time-honored tactic decline in importance, or find new life?  Stay tuned …

Welcome to the Ad Duopoly: Google and Facebook

Unless you’ve been living under a rock, it’s pretty obvious that the advertising marketplace in America has changed radically in the past few years.

In short order, we’ve seen the largest concentration of digital advertising converge on just two players:  Google and Facebook.  In fact, according to digital advertising research firm eMarketer, those two firms alone are attracting two-thirds of all digital ad dollars in the United States.

But this development isn’t all that surprising.  The vast bulk of Google’s ad market share results from its search engine marketing platform (paid search). As for Facebook, it dominates digital display advertising not just in America, but in many other countries all over the world as well.

And both companies are the “big kahuna” players in the mobile advertising sector, too.

What’s interesting is that, despite the shortcomings that many people recognize in both types of digital advertising – banner blindness and often ill-targeted paid search results — healthy growth in both forms of advertising continues apace.

Google’s ad revenue growth has average around 20% for more than 30 straight quarters. Its growth in the third quarter of 2017 is right on pace at 22%.

For Facebook, the growth dynamics are particularly lucrative; its year-over-year ad revenue growth is pushing 50%.

Mobile ad revenues are growing even faster; they accounted for “only” $9 billion in revenues for Facebook in just the third quarter.  And just as paid search advertising revenues represent more than 90% of Google’s total company revenues, mobile advertising accounts for nearly 90% of Facebook’s overall revenues.

With so much advertising activity, one might wonder from where it’s emanating.

One answer to that question is that the “universe” of advertisers is exponentially higher than we’ve ever encountered before. With low barriers to entry and “anyone can do it” ad development tools, “Jane and John Doe” are far more likely to be advertisers in today’s world of digital marketing than was ever contemplated just a few decades ago.

To wit: Facebook estimates that its social platform has more than 6 million active advertisers participating on it at any given moment in time.  That’s the equivalent of 2% of the entire population of America.

It’s kinda true:  “We’re all advertisers now.”

Does “generational marketing” really matter in the B-to-B world?

For marketers working in certain industries, an interesting question is to what degree generational “dynamics” enter into the B-to-B buying decision-making process.

Traditionally, B-to-B market segmentation has been done along the lines of the size of the target company, its industry, where the company’s headquarters and offices are located, plus the job function or title of the most important audience targets within these other selection criteria.

By contrast, something like generational segmenting was deemed a far less significant factor in the B-to-B world.

But according to marketing and copywriting guru Bob Bly, things have changed with the growing importance of the millennial generation in B-to-B companies.

These are the people working in industrial/commercial enterprises who were born between 1980 and 2000, which places them roughly between the ages of 20 and 40 right now.

There are a lot of them. In fact, Google reports that there are more millennial-generation B-to-B buyers than any other single age group; they make up more than 45% of the overall employee base at these companies.

Even more significantly, one third of millennials working inside B-to-B firms represent the sole decision-makers for their company’s B-to-B purchases, while nearly three-fourths are involved in purchase decision-making or influencing to some degree.

But even with these shifts in employee makeup, is it really true that millennials in the B-to-B world go about evaluating and purchasing goods and services all that differently from their older counterparts?

Well, consider these common characteristics of millennials which set them apart:

  • Millennials consider relationships to be more important than the organization itself.
  • Millennials want to have a say in how work gets done.
  • Millennials value open, authentic and real-time information.

This last point in particular goes a long way towards explaining the rise in content marketing and why those types of promotional initiatives are often more effective than traditional advertising.

On the other hand … don’t let millennials’ stated preferences for text messaging over e-mail communications lead you down the wrong path. E-mail marketing continues to deliver one of the highest ROIs of any MarComm tactic – and it’s often the highest by a long stretch.

Underscoring this point, last year the Data & Marketing Association [aka Direct Marketing Association] published the results of a comparative analysis showing that e-mail marketing ROI outstripped social media and search engine marketing (SEM) ROI by a factor of 4-to-1.

So … it’s smart to be continually cognizant of changing trends and preferences. But never forget the famous French saying: Plus ça change, plus c’est la même chose

Fewer brands are engaging in programmatic online advertising in 2017.

How come we are not surprised?

The persistent “drip-drip-drip” of brand safety concerns with programmatic advertising – and the heightened perception that online advertising has been showing up in the most unseemly of places — has finally caught up with the once-steady growth of economically priced programmatic advertising versus higher-priced digital formats such as native advertising and video advertising.

In fact, ad tracking firm MediaRadar is now reporting that the number of major brands running programmatic ads through the first nine months of 2017 has actually dropped compared to the same period a year ago.

The decline isn’t huge – 2% to be precise. But growing reports that leading brands’ ads have been mistakenly appearing next to ISIS or neo-Nazi content on YouTube and in other places on the web has shaken advertisers’ faith in programmatic platforms to be able to prevent such embarrassing actions from occurring.

For Procter & Gamble, for instance, it has meant that the number of product brands the company has shifted away from programmatic advertising and over to higher-priced formats jumped from 49 to 62 brands over the course of 2017.

For Unilever, the shift has been even greater – going from 25 product brands at the beginning of the year to 53 by the end of July.

The “flight to safety” by these and other brand leaders is easy to understand. Because they can be controlled, direct ad sales are viewed as far more brand-safe compared programmatic and other automated ad buy programs.

In the past, the substantial price differential between the two options was enough to convince many brands that the rewards of “going programmatic” outweighed the inherent risks.  No longer.

What this also means is that advertisers are looking at even more diverse media formats in an effort to find alternatives to programmatic advertising that can accomplish their marketing objectives without the attendant risks (and headaches).

We’ll see how that goes.

Advertisers “kinda-sorta” go along with FTC guidelines for labeling of native advertising placements.

In an effort to ensure that readers understand when published news stories represent “earned” rather than “unearned” media, in late 2015 the Federal Trade Commission established some pretty clear guidelines for news stories that are published for pay.

The rationale behind the guidelines is that the FTC wants advertisers to be prevented from presenting paid content in ways that mask the fact that it’s a form of advertising.  Essentially, it wants to avoid leaving the erroneous impression that the advertiser did not create — or influence the creation — of the content, or that it paid a fee in order for the news to be published.

But what native advertising content developer Polar has found is that the explicit disclosures the FTC wishes advertisers to include as part of their stories tend to have a negative impact on readership.

… Which is precisely what native advertising is trying to avoid, of course.

After all, the whole point of these articles is to appear that they’re published due to their inherent newsworthiness, rather than because advertisers wish to push a sales message disguised as “narrative” so strongly, they’re willing to fork over big bucks for the privilege.

In its evaluation, Polar analyzed ~140 native placements across 65 publishers, and found that only ~55% of them used the term “sponsored” as a way to label the content.

As for the term “advertisement” or “advertorial,” the incidence of usage was far lower; less than 5% of the native placements identified their content as such.

Correlated to these findings was that more euphemistic terms like “partner content” tend to perform better in terms of reader engagement than do more explicit disclosures of an advertiser relationship.

“Promoted” was found to be the best performing term, garnering a 0.19% clickthrough rate as compared to “sponsored,” with just a 0.16% clickthrough rate.

[Interestingly, on desktop devices “sponsored” marginal outperformed “promoted,” whereas on mobile devices it was just the opposite.]

More broadly, the Polar investigation also found that nearly one-third of the pay-to-play native advertising placements it evaluated failed to comply at all with the FTC guidelines (as in zip/zero/nada) – which brings up a whole other set of issues at a time of heightened awareness of the “fake news” phenomenon online.