Trump and Stormzy: How Beano creates content kids want

British comic book publisher Beano has an 80-year history in print, but now it wants to be the online destination for children 6 to 12.

At a time when reports of inappropriate content for kids on YouTube abound, the unit of DC Thomson has put a lot of thought into what online media should look like if designed for kids.

“When we talk about need states in adults, we talk about the need for serendipity or to surprise and entice audiences,” said Martin Ashplant, chief product officer at Beano. “Children want to interact with the content, and when it comes to user interface, they want familiarity and security.”

In 2016, the company renamed itself Beano Studios and expanded beyond comics to TV, digital content, merchandise and partnerships. Its digital revenue comes from branded content, display ads and consumer insight.

Beano has about 35 employees creating digital videos each day, from top 10 lists, trend stories and pieces on YouTube stars. Recent videos have included Alexa joke fails, food trends of 2018 and six reasons to love reality TV celebrity Georgia Toffolo. They also make interactive quizzes, games and craft videos, like how to make 3D paint.

Beano publishes some of its content to YouTube, but the focus is on growing its own site and app traffic. Average session time in its app is around 10 minutes and more than a third of its app users return every month, according to the company. Its Facebook and Twitter content tends to be nostalgic content that’s aimed at adult fans.

The company runs Skype user testing sessions every six weeks with kids from its target demographic. These focus on a particular element of the site or app to understand how audiences respond to navigation or content types.

Much of Beano’s content is informed by Beano’s panel of children, who are each paid £20 ($28) a month for a weekly 15-minute chat. With tracking, retargeting and outlinking heavily regulated for kid-aimed content, feedback from the panel and user testing supplements anonymous data that Beano uses to make products kids want. Based on the panel, their interests are more varied than one might think. Along with fidget spinners and slime, children are talking about Donald Trump and grime artist Stormzy, Ashplant said. Last year, the two most popular topics among Beano’s target age group were the U.K. general election and Justin Bieber’s “Despacito,” he said.

“Stormzy is part of their popular culture, but there are elements of the music that won’t be appropriate for kids,” he said. “That’s the balance for Beano, too:Tthe characters are mischievous but still safe.”

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‘You sound like Kate Winslet’: How the British accent took over advertising culture

A top agency executive was giving a presentation to a client recently on a new product range. After about 90 minutes, she asked the client’s team for feedback and initial thoughts on her work. She got one: “I just want to say, we’ve been mentioning, we love your accent,” said one of the team. “You sound like Kate Winslet.”

It’s a common experience for this executive, who asked not to be named. She’s British, and she has worked in the U.S. and Australia for most her career. And she’s found, like others interviewed for this story, that her British accent gives her, in some ways, a leg up.

“I think it makes me memorable,” she said.

And that seems to be important in the agency world. In an industry where networking and social gatherings are common, it can be tough to stand out. Perhaps ironically, the rise of digital and social media has put more importance on verbal communication, whether with clients or to internal teams. So how you present yourself, accent included, can matter.

Oliver Smith, a Brit who’s an evp at Unruly, agreed. “When you’re presenting and when you’re trying to make a presentation or meeting as engaging as possible, it can be helpful to have different accents,” he said. “Especially in sales.”

Australian-born Paul Spriggs, the president, Americas, at System1 in New York, said that that’s because advertising is about conceptual ephemera. “Language is so critical in getting to the idea and explaining the idea to other people,” he said. “The British capture an insight or idea very well. Or it feels so.” Focusing on someone’s accent may seem superficial, but it can have a real impact on one’s career in the U.S. “I’m very conscious of my accent,” said Spriggs. “How often does it come up? Every single day.”

The weight of history
Jay Haines, a Brit who’s the founder of recruiting firm Grace Blue, traced the weight of the British accent in the States to the 1950s and 1960s, when PBS carried a lot of BBC shows with British narrators. That associated Britishness with intelligence and respect.

Claire Cowie, a lecturer in linguistics and English at the University of Edinburgh in Scotland said there has been research on English accents in the U.S. She pointed to research by University of Michigan professor Rosina Lippi-Green, who in a 1997 book, “English with an accent: Language, ideology and discrimination in the United States,” looked at how villains have typically British accents. (Think Scar, played by Jeremy Irons in “The Lion King.”) That created a perception that British accents were negative but intelligent-sounding, Cowie said.

Britain also has a long association with the creative industries, including music, film and advertising. And the final piece was the emergence in the 1980s of media planning.

In that time, a new discipline had emerged, driven by British agencies like J. Walter Thompson (which had a planning department as far back as 1968) in London, using consumer insights and data to drive creative work and client business. By the 1990s, planning had become a critical function of British advertising. Jay Chiat brought it to the U.S., noting that British creative work at the time was superior to American work. British planners came over — and they’ve kept coming.

Haines theorized that because Brits spearheaded the new discipline of planning, they (and their accents) became closely associated with the skill. Even as the industry became more globalized and Britain has lost its vaunted place in creative work, the image hangs on.

Tom Goodwin, a British ad exec at Zenith who frequently speaks on the ad circuit, said that as a Brit, “you carry with you a prejudice of you being probably smarter than you are. It’s formed by the English accent and how Americans may perceive it, plus a strong planning culture. Even when I speak slowly on the phone, it feels like people are hanging onto your every word.”

(Of course, not all British accents have equal charm. “The English person in America culture has to be the Simon Cowell accent and middle of the road,” said Goodwin. “Regional accents don’t work in the same way.”)

Accent bias
Being from abroad in general can be an asset in advertising in other ways. As an outsider, you have permission to ask questions that locals might not. Anathea Ruys, Carat’s MD in Los Angeles, said she feels her status as an Australian makes her memorable and “gives me license to ask questions you normally can’t.” That can break the ice, and in pitches, particularly, make it easier to offer a different perspective.

And Americans have a comfort level with Brits and Aussies in particular because of shared language and cultural values, which is helped along by globalization. There are so many Brits in Australian advertising that sources said that MediaCom has become affectionately known as “MediaPom.” “Pom” is a colloquial term that stands for “prisoner of Her Majesty.” In Los Angeles, a group of British expats have a drinking group called DrinkLA (the name is drawn from L.A. advertising non-profit ThinkLA).

Goodwin said that in addition to the accent, part of Brits’ and Australians’ appeal is that they tend to be straight shooters. “America has a lot of corporate language which is total bullshit,” he said. “It’s easy to say things in America that don’t mean anything. In that context, it’s seen as a positive — accent or not — if someone says it like it is.”

It’s unclear if fondness for British accents translates to bias in hiring and salary. Recruiters say it’s hardly that cut and dried, but that at least for an interview or first meeting, an accent makes the person memorable. And Brits’ cultural legacy in advertising can give them an edge.

If some accents are an advantage, it stands to reason that others are a disadvantage. A 1994 study by Lippi-Green found that most cases of discrimination in the U.S. workplace stemmed from people with accents from countries in Africa and Asia.

No wonder then that people with non-British accents try hard to blend in. “I’ve found that because I have a slight Chinese accent, I have to make an effort to speak slower and try and temper it down, flatten my words,” said one media agency employee. Another agency employee, who is from Germany, said she made it a point to Americanize her accent when she first started looking for jobs here eight years ago.

Fair or not, the accent effect seems pervasive.

“While an accent is something frivolous and shouldn’t play into something, it does play into a mind,” said Spriggs.

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Digiday Research poll: Facebook’s algorithm change isn’t all bad for publishers

Facebook grabbed headlines when Mark Zuckerberg announced in January that there would be changes to the algorithm powering its news feed. The update will see Facebook deprioritize news stories in favor of content from friends and groups. In an online survey of over 30 Digiday+ members, respondents were split almost down the middle about how Facebook’s changes would affect publishers.

Why it could be positive for publishers:

This article is behind the Digiday+ paywall.

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Swatch taps into esports by sponsoring drone racers

Last Saturday night, people filled Swatch’s flagship store in Times Square to watch a livestream of players racing drones in a video game.

The event was a viewing party for the 2018 Swatch Drone Racing League tryouts, where 24 drone video-game racers competed for a chance to be sponsored and receive a $75,000 professional racing contract from the watch maker. The winner, Brodie “Robogenesis” Springer, will race in the 2018 Drone Racing League Allianz World Championship Season, which Swatch became an official partner of in June 2017.

For Swatch, the sponsorship and partnership is an avenue into the increasingly popular world of esports and way to grow the brand’s cross-platform marketing. In esports, video gamers compete in tournaments that are often livestreamed online, on TV or live in stadiums.

In 2018, DRL plans to host seven races, all of which will include Swatch branding. The races will be livestreamed on social media channels like YouTube and DRL’s website and broadcast across 75 countries on TV channels such as ESPN, Sky Sports and Disney XD, said Nicholas Horbaczewki, CEO and founder of DRL. The content will also live on iTunes.

Swatch is expecting a large viewership. Horbaczewki said that in 2017, 55 million people worldwide watched the inaugural DRL World Championship Season on TV while 100 million watched online, numbers he expects to increase in 2018.

Esports originated in South Korea in the early 2000s and has gained an international following with the help of streaming platforms like Twitch. Esports brought in 385 million viewers online in 2017, and is expected to grow to 589 million viewers by 2020, according to Newzoo’s 2017 Global eSports Market Report.

Brand dollars are following the audience. According to Newzoo, marketers spent $484 million in 2017 in esports, including media rights, advertising and sponsorships. By 2020, that number is estimated to grow to $1.2 billion.

Drone racing is the latest esports vertical to take off. When Horbaczewki first launched DRL in 2015, drone racing was already becoming popular in countries outside the U.S. “I wanted to bring this underground sport to a global audience,” he said. “For Swatch to partner with such a new sport, it really says something about its potential.”

Carlo Giordanetti, creative director of Swatch, wouldn’t give the cost of the partnership with DRL but said that it was a multiyear partnership that will last at least three years and that Swatch may sponsor future racers based on the audience response.

The drone-racing audience is one that Swatch cannot reach elsewhere and stands out from other sports fans because of their embrace of new technology and sports, according to Giordanetti.

Throughout the Championship races, Swatch plans to use the racers as influencers, sharing their stories, especially those of its sponsored racer Brodie Springer on its social media channels, said Giordanetti.

Swatch will likely also bring some racers into its stores, as it already does with around a dozen other athletes, said Giordanetti.

“If you are able to make a connection between a brand and a person you admire,” said Giordanetti, “you get involved in the brand in a more personal way.”

Image courtesy of Swatch

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After it stopped posting to Facebook, a Danish broadcaster saw its traffic stability improve

Publishers wonder what will happen to their traffic if Facebook drops news from its news feed entirely, as some fear. Danish broadcaster TV Midt Vest found out just that when it stopped posting content to Facebook for two weeks in January.

The regional news broadcaster, which gets around 40 percent of its referral traffic from Facebook, ran the test as part of a long-term plan to wean itself off the platform.

Unsurprisingly, the broadcaster saw a 27 percent drop in visitors to its site, a 20 percent drop in sessions and a 10 percent decline in pageviews.

But the readers who remained averaged 42 percent more time within articles and read 12 percent more pages per session than they did prior to the test, according to the broadcaster. Readers also read more articles once fly-by Facebook traffic wasn’t part of the equation. For example, the broadcaster used to post nine to 16 articles or videos a day on Facebook, and usually it was one specific article that would catch fire on Facebook and cause traffic to spike. When it stopped posting to Facebook, traffic was more evenly distributed with each person reading around three to four stories.

“This was an eye-opening test,” said Nadia Nikolajeva, head of digital at TV Midt Vest. “I was expecting a far bigger overall drop [in traffic] after stopping publishing to Facebook. We’d become used to traffic being so unstable. But when we took away the Facebook traffic, our traffic became incredibly stable.”

The broadcaster announced the test, which ran Jan. 16-30, on its linear TV channel. At the same time it commissioned four members of the public — a student, politician, entrepreneur and property director — to stop using Facebook for the same two-week period. The aim was to see how they got news when they couldn’t see in the news feed, according to Nikolajeva. During the two-week period, TV Midt Vest’s team published interviews with the four test subjects on their experiences. The subjects said they felt more informed when they were limited to getting news from respected publisher sources but missed the interaction with other Facebook users.

Nikolajeva had been mulling going cold turkey on Facebook since last fall, having been frustrated with months of unstable traffic patterns. That, along with a general disappointment with the Facebook Journalism Project, inspired Nikolajeva to think seriously about cutting ties.

As a public service regional broadcaster, TV Midt Vest has the luxury of not having to worry about making money from Facebook. Still, Facebook has been a vital driver of traffic, even if most of it tends to be flyby visitors.

TV Midt Vest has resumed posting on Facebook again, but less than before the test, though how many depends on the day, so it couldn’t give an exact number. Facebook announced in January that it plans to promote stories that are shared or engaged with by users, so for now the broadcaster will continue posting stories that are likely to prompt a lot of commenting and sharing on Facebook. But the publisher is also working on ways to cultivate the same kind of engagement on its own platforms.

The broadcaster also may increase its attention to other social platforms such as Apple News. Apple News hasn’t yet offered Danish publishers the chance to sign up officially. However, TV Midt Vest saw a spike in two of its own stories being referred from Apple News. In fact, the spike on two main stories occurred during the Facebook-celibacy test.

The two articles that caused the spike in traffic were one about a man being killed after a train raid and another about local supermarkets having to close due to rat infestations. The broadcaster isn’t sure how these two stories managed to drive so much traffic from Apple News, and they eliminated the Apple News-driven figures from its results because those stories were outliers. We asked Apple News for comment; we’ll update if they reply.

Nikolajeva is still mulling how to apply the Facebook experiment to the broadcaster’s social media strategy, but she knows this much: There won’t be any big projects involving Facebook in the coming year.

“It is like relying on a car that doesn’t always start — you would never make a business where you have such an unreliable factor, and I can’t spend money on sponsored posts. So it is not the platform for me,” Nikolajeva said.

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‘Somber, for sure’: Expectations of more consolidation hang over magazine conference

After a year that saw the sale of magazine stalwarts Time Inc., Rodale and Rolling Stone, there was plenty of black humor at the magazine industry’s annual gathering, the American Magazine Media Conference.

Hearst Magazines chief content officer Joanna Coles joked that she was surprised to see so many people still worked in the magazine industry. Jim McKelvey, the founder of Invisibly, quipped that this was the first industry event he’d attended that gave away Kleenexes in the gift bags. Kim Brink, COO of the agency BTG, gave a presentation about rescuing legacy brands from the brink of extinction. After Fortune President Alan Murray asked the crowd in the ballroom how many could say their business was booming, just one hand went up.

“Everybody’s looking for a reason to be optimistic,” one attendee said. “But it’s somber, for sure.”

There were plenty of highlights held up throughout Tuesday’s presentations. There were 700 magazines launched in 2017, according to MPA – The Association of Magazine Media data; Magnolia Journal, which won the MPA Award for Best Magazine Launch, built a circulation of 1.2 million in its first year. And publishers such as National Geographic talked up their success in diversifying their revenue streams. Executives including Hearst Magazines president David Carey saw in the disruption a chance to launch new products. Conversations about diversifying revenue and trying new technology abounded.

“People are realizing there’s no silver bullet,” one attendee said. “I think people are finally getting bold enough to try something different.”

The industry’s recent consolidations were only flicked at on stage – Steve Lacy, executive chairman of Meredith Corp. and president of MPA, alluded to it during his opening remarks – but they figured more prominently in offstage chatter.

“I think it gives us some more heft,” said one Time Inc. executive in attendance. “But things are going to get uncomfortable in some departments.”

Those not affected by last year’s mergers first-hand saw them in a different light. “It opens up more space for little guys,” said another attendee.

And while some digital publishers have held up the idea that publishers could band together to fix their problems, not everybody is optimistic that that will work. Onstage, Murray asked WPP CEO Sir Martin Sorrell if he thought publishers should band together to combat the duopoly. Sorrell replied, “When industries that are highly competitive are faced with an existential threat, they rarely come together.”

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Inside Overstock.com’s financial services strategy

Add Overstock to the major retailers blurring the lines between retail, technology and financial services.

For the past few months, the 19-year-old e-commerce company has been quietly building out FinanceHub, a sort of marketplace for financial services that includes existing Overstock credit cards and insurance products; loans by LendingTree, Prosper and Sofi; a robo-adviser for automated investing, as of last week — and as of Tuesday morning, a discounted trading platform.

The platform and Overstock’s broader financial services “strategy” is nothing more than a natural extension of the company’s retail function, buying and selling consumer goods, according to Raj Karkara, Overstock’s vice president of loyalty and financial services.

“It’s all about providing the best value to the consumer: best in class products and experiences. The experience part is something that traditional financial institutions haven’t focused on but they’re turning that around now,” he said. “Consumers don’t want to sit and sign 50 documents, they just want to go online and get through the steps they need to take to move forward.”

Read the full story on tearsheet.co

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NBCUniversal and CNN lead the nominations for the 2018 Digiday Publishing Awards

NBCUniversal and CNN’s Courageous Studio are leading in the 2018 Digiday Publishing Awards with six nominations each.

NBCUniversal is nominated across NBC News Digital, NBC News and CNBC for six awards total. NBC News Digital’s svp Nick Ascheim is up for Publishing Executive of the Year, while its social media and commerce efforts are nominated for Best Use of Snapchat, Best Use of Facebook Live and Best Use of a Messenger Bot and Best E-Commerce Strategy. CNBC is up for Best Branded Content Program for its work with Chase Ink.

CNN’s Courageous Studio, which has won three Digiday Video Awards, is up for six more. Its work with Volvo during the August 2017 eclipse, “Racing The Sun,” is up for four nominations. It’s up for Best Branded Content Program – B2B for “The Ring Bearer,” which chronicles a young man’s journey to propose to his childhood sweetheart. It’s also in the running for Best Content Studio.

Chetan Patel, Digiday Publishing Awards judge and head of social video and publishing at NowThis, said, “I was impressed by the consistent ability of top publishers to produce content that’s not only true to their values, but is engaging to audiences and responsive to the constantly-changing and ever-growing variety of platforms.”

Bleacher Report’s senior vp of content Joe Yanarella echoed Patel: “At a time when media companies need to be collaborative and solution-oriented with partners to be successful, to see that compelling human drama, innovative storytelling formats and focused creative vision still reign supreme bodes well for the industry.”

View the full list of finalists below. The gala will take place March 29 at Chelsea Piers in New York City. Ticket are available for purchase here.

Publisher Of The Year
Hearst Magazines Digital Media – Delish
Great Big Story
Bleacher Report
The Players’ Tribune
Dotdash – About.com

Publishing Executive Of The Year
Rich Routman, president & CRO, Minute Media
Nick Ascheim, svp, NBC News Digital
Neil Vogel, CEO, Dotdash
Ankush Gupta, COO, Revenu8

Best New Vertical/Brand
NowThis – NowThis Her
TeamWorks Media – La Vida Baseball

STAT – STAT
The Players’ Tribune
The Washington Post – The Lily

Best Use Of Snapchat
The Washington Post – Snapchat Discover Channel
Refinery29 – Snapchat Discover Channel
Conde Nast – Self on Snapchat: “Wellness You Can Trust
NBC News – “Stay Tuned
Scripps Networks Interactive – Food Network Snapchat Discover

Best Use Of Instagram
Nasdaq – Stitch Fix Goes Public

A post shared by Nasdaq (@nasdaq) on

NowThis – Vegas Victims Tribute
Domino Media Group – @dominomag Instagram
The Washington Post – @lilynews on Instagram
Bleacher Report – “House Of Highlights” Instagram takeover

Best Use Of Facebook Live
Refinery29

NBC News

Ballislife, LLC – BALLISLIFE Facebook Live

Nasdaq & FedEx – Never Settle Show

Bleacher Report – B/R NFL Draft Show

Best Use Of A Podcast
Slate Studios & Teva – Life Effects
Los Angeles Times – “Dirty John
The Washington Post – “Can He Do That?” Podcast
Entrepreneur Media Inc. – “Entrepreneur Problem Solvers
Harvard Business Review – HBR IdeaCast

Best Use Of A Messenger Bot
Scripps Networks Interactive – Food Network Messenger Bot
NBC News Digital – Sleep BETTER SMS Bot
Quartz & HPE – Hugo Messenger Bot
TEN: The Enthusiast Network – Infiniti Q60 SpeedBot
Receptiv – MARS Snickers Hunger Bar & Kik Integration

Best Use Of AR/VR
Artsy – “Inside The Biennale
Quartz – AR in the Quartz iPhone app
CNN Courageous Studios – “Racing The Sun
PGA TOUR – PGA TOUR VR Live
USA TODAY Network – USA TODAY Network’s Interactive VR

Best Use Of Audience Data
Sage – Invoice templates campaign
Jukin Media – “People Are Awesome”

Yahoo – “Weed & The American Family
PopSugar Inc. – RetailRank Industry Report 2017
Dotdash

Best Live Event
CNN Courageous Studios – “Racing The Sun
OMD – Impractical Jokers Block Party

Brit + Co – #CreateGood
New York Media – Vulture Festival
Time Out – “Battle Of The Burger

Best Use Of Technology
CNN Courageous Studios – “Racing The Sun
Purch – Purch Publisher Services
Outside Magazine – Outside
Bloomberg Media – Bloomberg Lens
NASCAR Digital Media – NASCAR.com Homepage Rebuild

Best Email Newsletter
HuffPost – HuffPost’s Morning Email
Harvard Business Review – “The Insider
The Washington Post – Lily Lines
The Daily Beast – “The Cheat Sheet
Quartz – Quartz Obsession

Best Video Series
Nasdaq – “Cultural Capital”

Uproxx – “Us Against The World
Refinery29 – Shatterbox Anthology

BuzzFeed News – “AM to DM
NowThis – “Who Is?”

Best Overall Design
Versus Productions – Washington Post re-brand
NowThis – NowThis Snapchat
The Washington Post – The Lily
1973 – Astrology.com Relaunch
New York Media – The Cut

Best E-Commerce Strategy
NBC News Digital – TODAY.com e-commerce
Hearst Magazines Digital Media – BestProducts.com
BuzzFeed – BuzzFeed Commerce
Thought Catalog – Shop Catalog
Dennis Publishing – Buyacar.co.uk

Best Experiential Marketing Campaign
Brit + Co – Lyft’s “Play It Forward” Arcade at Brit + Co’s #CreateGood
What To Expect – What To Expect Awards
Domino Media Group & American Express Platinum – “The Domino Outpost

Best Branded Content Program – B2C
Upworthy & L’Oreal – Dermablend Reflections

The Hook – The Hook & Jigsaw

CollegeHumor & Amazon Student Prime – “Go Back To School
Bloomberg Media & Optum – “Day Zero
Turner Entertainment Networks – Turner and “Wonder Woman” Partnership

Best Branded Content Program – B2B
CNN Courageous Studio & Pitney Bowes – “The Ring Bearer
NBCUniversal/CNBC Primetime – Chase Ink & CNBC’s “Small Business Insights”
American Chemical Society – “The Chemours Company
Atlantic Re:think & VMware – “The Possibility Report
The Economist Group & HPE – “Yeasayers Game”

Best Mobile Innovation
South China Morning Post – South China Morning Post mobile app
Gannett Company & Urban Ship – USA TODAY Rich Notifications
Scripps Networks Interactive – Food Network’s “In The Kitchen” app
Leadbolt – Mobile Playable Ads for “Word Cookies”
Bloomberg Media – Bloomberg app

Best Brand Partnership
NowThis & Samsung Gear 360

Kyra TV & Paq – “Making an Advert for Converse”

CNN Courageous Studios – “Racing The Sun
The Economist Group & HPE – “Yeasayers Game”

Jungle Creations & Yoti – “Little Casanova”

Best Custom Advertising
Slate Studios & InterContinental – Euphonia Unit
Lonely Planet & GoPro – “Best In Travel 2018
Bustle & Sephora – “The Beauty Lab”
Turner Entertainment Networks & Pepsi – “Summer Of Joy” with Conan O’Brien

USA TODAY NETWORK – Paramount Ad Products

Best Content Studio
HearstMade
BDG (Bustle Digital Media Group) Studios
Onion Labs
CNN Courageous Studio
Atlantic Re:think

Most Effective Sales Team
Fandom
Bustle Digital Media Group
National Public Media, NPR
Investopedia

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For The RealReal, 2018 will be ‘the year of the pop-up’

Spurred by the success of its first brick-and-mortar location in New York City, luxury consignor The RealReal plans to further invest in in-store experiences for 2018, dubbing it “the year of the pop-up,” according to Allison Sommer, the company’s director of marketing.

“Stores help to legitimize your brand and give [online brands like ours] a street-level presence,” Sommer said, while speaking at the FutureStores conference in Miami on Tuesday.

The RealReal, which had previously held a pop-up in New York City in 2016 that reportedly brought in $2 million, opened the doors to its SoHo location in late November. Motivated by that store’s success, the retailer will be testing new markets with pop-ups throughout the year. The average order value in store is six times that of online orders, said Sommer — a stark number for a formerly online-only brand.

“Once somebody walks in and gets sucked into the cool features and values of the brand, they become loyalists,” she said.

This is especially true in newer markets for the brand, like San Francisco, where The RealReal held a two-month pop up beginning in November. “These shops help to build awareness in new markets that lives on when the pop-up is gone,” said Sommer.

Since the San Francisco pop-up wrapped, The RealReal has seen a 500 percent year-over-year increase in the number of online buyers from the area.

Hoping to repeat that success, the brand will open a Las Vegas pop-up next week, with more locations throughout the U.S. to follow throughout the year. The goal is to tap into those fashion-loving customers who aren’t so accustomed to the pop-up frenzy that shoppers in cities like New York and Los Angeles are familiar with, as more and more digital-first brands have realized their merits.

“For an audience that’s not inundated with Soho-style, cutting-edge shopping options, it’s even more exciting to visit these spaces,” said Sommer.

Even so, she said, relying solely on the pull of men’s and women’s luxury fashion, fine jewelry and home decor doesn’t cut it. Consumers today are endlessly hungry for the next “experience,” and a certain level of detail is still required.

Although not all of The RealReal’s pop-ups will be rounded out with a cafe and flower shop, as in the case of the brand’s New York flagship, the pop-up series will place a similar premium on expertise, with everyone from authentication specialists to gemologists on hand to assist customers.

Even the more general roster of in-store sales staff has been heavily vetted.

“We are really deliberate when we’re hiring to not just go for former store associates who are all about commission,” said Sommer, noting that The RealReal has hired people with backgrounds at places ranging from Sotheby’s to Gucci.

As in New York, private shopping events for VIP customers and educational workshops on topics like “How to Value a Diamond” and “The History of Chanel” will also be held to court more traffic. In addition, consignors can visit a similar in-store consignment office to get price quotes on specific items and drop them off to be sold online.

Those sellers are a crucial piece of the puzzle for The RealReal, which has seen competition heat up in recent years. Although the six-year-old company is now the most-funded online luxury resale startup, competitors like Vestiaire Collective and ThredUp are edging in.

According to Sommer, the site now has 7 million members internationally, though it’s unclear how that breaks down between buyers and sellers.

“The challenge is introducing the concept to people and building the awareness that ther is an option for people [other than a] landfill,” she said.

As The RealReal sees it, having an in-store presence is key to getting that message across, and, so far, it seems to be working: “Most of our new sellers had never consigned before,” said Sommer. Whether or not this will lead to more permanent locations down the line, however, remains to be seen.

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Snap Shares Pop as Revenue Rises

Snap’s stock surged more than 25% after the company reignited revenue and user growth for the first time as a publicly traded firm, a promising sign that may reflect progress in persuading advertisers its Snapchat app is a viable alternative to Facebook and Google.

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