The number of American deaths at work from unintentional drug and alcohol overdoses jumped more than 30% in 2016, new government data shows, showing that the U.S. struggle with a deadly opioid epidemic is migrating to the workplace.
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The BBC is using facial coding and eye tracking to prove its branded content works
Proving the effectiveness of branded content has been an industry fixation in 2017, BBC StoryWorks, the branded-content arm of the broadcaster’s commercial division BBC Global News, is offering clients facial-coding and eye-tracking tools to show its branded content works, the fruits of two years of research.
Chinese phone maker Huawei is the first client to use these tools for its four-part video campaign “The Explorers.” One of the two-minute videos features an interview with former NASA astronaut Ron Garan. The content is viewed by a sample of the BBC’s global panel of 12,000 members — for Huawei, the sample was 400 — with facial-recognition and eye-tracking software activated through their desktop webcams. Facial movements are recorded on a second-by-second basis and then divided into six possible emotions: sadness, puzzlement, happiness, fear, rejection and surprise. Eye-tracking software indicates which part of the content, which could also be text-based, triggers the emotion.
After the campaign, StoryWorks offers analysis on how the content delivered against brand metrics. Compared to a control group, those who saw the Huawei campaign recorded a 216 percent increase in brand awareness, a 23 percent uptick in brand association and a 19 percent increase in purchase intent, according to the BBC insights team, which couldn’t share exact numbers.
“We want to use science to ascertain the emotional impact of content,” said Richard Pattinson, svp of BBC StoryWorks. “We see a clear correlation between audience engagement and brand impact; we want to use this when we commission with our partners. My focus in 2018 is to understand engagement better. We’re long past engagement [for content] being dwell times and pageviews.”
BBC Global News’ insights team has been researching how emotion relates to brand metrics for the last two years. Its “Science of Engagement” study, in partnership with facial-coding company CrowdEmotion, has won awards.
“We see a strong correlation between serious emotions like fear and positive uplifts in brand awareness,” said Pattinson. “Eliciting more challenging emotions is legitimate. It demonstrates empathy and understanding as a brand.”
Understanding which part of content elicits an emotional response can play into a brand’s distribution strategy. For instance, audiences might feel puzzled during a certain section of a two-minute video, which could then be cut and distributed on social media with the idea that more people will share it.
As with most data-related decisions, these tools are more likely to reinforce hunches rather than break new ground. Pattinson notes that they are not used to create ideas but achieve better cut-through in a crowded content market. “This is the science that helps the art show its full potential,” he said. “It demonstrates why it has been effective for the brand.”
Pattinson also said the tools could help brands understand what content relates to which part of the purchase funnel, which could inform distribution cycles, depending on the campaign objectives. For Huawei, the campaign objectives were more about driving awareness than driving purchase. Four other brands are using StoryWorks’ tools to help demonstrate brand outcomes as a result of emotional engagement, although StoryWorks couldn’t disclose their names. With this added research, the hope is clients are more likely to renew contracts with StoryWorks. Media companies like Vice and The Telegraph are increasingly beefing up the information they can give to clients to prove the effectiveness of their ads.
Since April, StoryWorks has closed over a hundred branded-content deals globally. In early 2016, Pattinson said revenue from branded content was roughly 30 percent of overall ad sales; now, he said it’s closer to 45 percent. StoryWorks has offices in London, New York, Singapore and Sydney with roughly 36 employees, including strategists, project managers, writers, developers and social media managers, among others.
As StoryWorks offers the tools to more clients as planned, it will need to hire more staffers, particularly because post-campaign analysis is bespoke, depending on campaign objectives. “This can only be valuable with the right degree of attention,” said Pattinson, “but bits of it are very scalable.”
Image courtesy of BBC StoryWorks
Publishers are underwhelmed by the payoff from hitting viewability standards
Publishers are bending to the will of advertisers to make their ads more viewable, but some publishers are finding the payoff isn’t as great as they anticipated.
Over the past year and a half, advertisers have continually pounded their fists, demanding that they’ll only buy ads that are guaranteed to be seen by a user. The push for viewability gave the impression that advertisers would spend branding campaign dollars with publishers that had highly viewable ads, said Erik Requidan, vp of programmatic strategy at Intermarkets, which helps publishers including Drudge Report and The Political Insider market their ad inventory to buyers.
Instead, the sites Requidan works with continue to be relegated to getting performance-based ads, he said. Those sites might see a few dollars increase in their CPMs if they boost their viewability, but big-brand dollars haven’t materialized.
“If something is 90 percent viewable, shouldn’t that unlock a whole lot more money or a bigger price point?” he asked.
When listicle publisher Ranker tweaked its site layout last year, page-load time went down 60 percent and average viewability rates doubled from 35 percent to 70 percent. Those factors helped Ranker increase its average CPMs by about 75 percent, but the prices of its least and most viewable ads don’t differ much.
Ranker’s ad viewability ranges from 62 to 82 percent. But there’s only a 13 percent difference in the CPMs for these ad units, said Ranker CEO Clark Benson. Given how much advertisers and their tech vendors emphasize that campaigns perform better when ads are 80 percent viewable, Benson expected Ranker’s most viewable ad units to command a higher price.
“So far, the promise of viewability quickly filtering out bad actors and improving yields for the good ones seems to be only a half-kept one,” he said.
It’s a similar story elsewhere. Stephanie Layser, vp of ad tech and operations at News Corp, said there’s no significant difference in price between the publisher’s least and most viewable ads. Remedy Health Media, the publisher of health sites like HealthCentral and TheBody.com, has seen little lift in its ad rates since increasing its viewability, said Aryeh Lebeau, evp of client operations there.
Some publishers said they’re satisfied with the pricing lift they’re getting for highly viewable ads, which is a function of their expectations of their advertisers.
Lebeau wasn’t bothered by the lack of lift in ad rates because advertisers never promised Remedy higher rates in exchange for higher viewability.
A programmatic specialist at a comScore 200 entertainment publisher, requesting anonymity because he wasn’t authorized to share financial details, said a 30 percentage-point lift in viewability at his company’s websites tends to increase CPMs by about 20 percent. This person emphasized that it’s difficult to isolate viewability’s impact on ad rates, so these figures are rough estimates. The source still felt his company was being compensated fairly for its highly viewable ad placements.
Another source, Danny Khatib, CEO of 100 percent programmatic publisher Granite Media, said high viewability rates can boost Granite’s CPMs by a few dollars, which he saw as significant.
“We never expected new branding budgets to come online solely because of viewability improvements,” he said. “That seems like wishful thinking.”
In an Integral Ad Science survey of more than 1,000 advertisers, 68 percent of respondents said they transact on viewability and another 25 percent said they wanted to do so. Although buyers are regularly transacting on viewable metrics, viewability is less likely to influence ad rates if it isn’t a primary KPI.
The reason rates haven’t risen right along with viewability has to do with how programmatic buying works. David Lee, programmatic lead at media-buying agency The Richards Group, said that even in a private marketplace setup, most buyers don’t place bids on individual publishers but place bids across hundreds, if not thousands, of sites at a time.
So if viewability is being used as a secondary KPI, then buyers’ bids will be restricted to the publishers that meet a certain viewability threshold. But since buyers aren’t bidding on individual publishers, they’re not intentionally setting out to pay specific publishers more based on their viewability gains. And since viewability rates are rising across the industry, publisher improvements in viewability are less likely to increase publishers’ CPMs than they were a year ago.
Another issue with rising viewability is that in an effort to appease advertisers, many publishers are doing whatever they can to make sure their ads are viewed just long enough to be counted as viewable. Most viewable ads are in view for just one second, according to IAS data. That amount of time happens to be the standard the Media Rating Council uses to define viewability.
As publishers increased their volume of viewable ads by refreshing pages, sticking ads in photo galleries and using interstitials, users got turned off and buyers caught on. IAS found that the average time that a desktop display impression was in view declined from 9.8 seconds in May 2016 to 7.7 seconds in May 2017.
“We’ve seen some publishers game the system in using ad placements that provide a less than optimal consumer experience but have higher rates of viewability,” said Stephani Estes, svp of media strategy at ad agency Cramer-Krasselt. “In those instances, we’re not willing to pay more for higher viewability.”
It’s understandable that publishers get miffed by low returns on highly viewable ads. But in programmatic environments, the highest CPMs come from programmatic direct deals, not the open exchange. And to entice ad buyers to set these deals up, publishers need to have viewability rates above 65 percent, according to three publisher sources.
Viewability isn’t necessarily a way to lift rates, said Mort Greenberg, svp of ad sales at Sightline Media Group, which owns government-focused sites like Federal Times and Military Times. “However,” he added, “high viewability will keep you on a plan.”
MarTech Today: Lotame’s GDPR prep, data breaches of 2017 & planning a CRM stack upgrade
Here’s our daily recap of what happened in marketing technology, as reported on MarTech Today, Marketing Land and other places across the web.
From MarTech Today:
Lotame’s prep for GDPR highlights big changes in data management
Dec 19, 2017 by Barry Levine
There’s tracking consent, providing data access and minimizing liability. Plus there’s the pending ePrivacy Regulation.
Equifax and beyond: How data breaches shaped 2017
Dec 19, 2017 by Robin Kurzer
Could this be a turn
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‘Always On’ is at the heart of every ABM strategy — here’s why
As a B2B marketer, you are often caught trying to serve two masters: the need to drive engagement for specific campaigns or periods relative to the business vs. the overall goal to drive persistent ROI throughout the year. In any scenario, it’s becoming more clear that the “campaign” mentality no longer serves.
Even marketing’s cousin, advertising, has evolved. In the age of programmatic and audience-based, data-driven marketing, advertisers have already moved away from the campaign a
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Bitcoin and other cryptocurrencies are just getting started, says Spark Capital’s Megan Quinn
Quinn, an investor in the crypto trading platform Coinbase, says “the toothpaste is out of the tube.”
The decentralized virtual currency called bitcoin has been around for nearly a decade, but it’s just recently starting to find mainstream attention and, in some circles, acceptance. That shift is thanks in no small part to the skyrocketing value of bitcoin, the world’s best-known “cryptocurrency,” from $1,000 near the start of the year to nearly $20,000 today.
For investors like Spark Capital General Partner Megan Quinn, “the toothpaste is out of the tube.” On the latest episode of Recode Decode, hosted by Recode’s Kara Swisher and The Verge’s Casey Newton, Quinn explained her investment in Coinbase, a company that is trying to position itself as the safe place to trade cryptocurrencies.
“People were sleeping on each others’ couches and renting rooms before Airbnb, but Airbnb provided that really safe, clean, approved — you got feedback, it was a transaction,” Quinn said. “You felt good about it. We think Coinbase is providing that sort of experience for trading crypto.”
You can listen to Recode Decode on Apple Podcasts, Spotify, Pocket Casts, Overcast or wherever you listen to podcasts.
Someday, Quinn said, the value of cryptocurrencies like bitcoin will level off enough that we will be able to start treating them like real money. But that day is not today.
“Today it’s speculative, 100 percent,” she said. “One of the folks on my team said he was liquidating his 401k to buy in, which made me pretty nervous. I’m optimistic that it will actually be a tool for transacting, once we reach some steady state.”
“In a world where it’s going up by a thousand dollars every couple hours, you don’t want to go to Overstock.com and buy a mattress,” Quinn added. “But if we can get to a place where it’s steady-state, I think there’s real opportunity there.”
So, who should buy into bitcoin now, when the price is so volatile? Talking to Swisher and Newton a few weeks ago, when the price was a measly $17,000, Quinn warned not to trust any of the “false prophet[s]” who claim to know when the roller coaster ride will be over; buying in now only makes sense for people with a lot of disposable income, she added.
“If you have a spare $17,000 that you are fine seeing go to zero, okay, fine, that’s not the worst way to spend it,” she said. “I don’t think cryptocurrencies, or bitcoin specifically, is ever going to go to zero. But I think if you’re someone who’s willing to have it go to zero, then you can ride out the stomach-lurching volatility that we’re going to continue to see for a while.”
If you like this show, you should also sample our other podcasts:
- Recode Media with Peter Kafka features no-nonsense conversations with the smartest and most interesting people in the media world, with new episodes every Thursday. Use these links to subscribe on Apple Podcasts, Spotify, Pocket Casts, Overcast or wherever you listen to podcasts.
- Too Embarrassed to Ask, hosted by Kara Swisher and The Verge’s Lauren Goode, answers the tech questions sent in by our readers and listeners. You can hear new episodes every Friday on Apple Podcasts, Spotify, Pocket Casts, Overcast or wherever you listen to podcasts.
- And Recode Replay has all the audio from our live events, including the Code Conference, Code Media and the Code Commerce Series. Subscribe today on Apple Podcasts, Spotify, Pocket Casts, Overcast or wherever you listen to podcasts.
If you like what we’re doing, please write a review on Apple Podcasts — and if you don’t, just tweet-strafe Kara.
Germany Says Facebook Abuses Market Dominance to Collect Data
Germany’s top antitrust enforcer opened a new front against big tech firms when it said the way Facebook harvests user data constitutes an abuse of dominance.
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Recode Daily: A final vote is imminent on Trump’s $1.5 trillion tax bill after House approval
Plus, Facebook is expanding facial recognition across its products, Stitch Fix releases its first earnings report since going public, and the best seats on Broadway.
Republicans in the House and Senate approved a sweeping $1.5 trillion tax plan. Trump is expected to sign it within days. Andrew Ross Sorkin: “The tax bill soaks some … rich Americans — but it does not soak the richest.” [The New York Times]
Facebook knows when someone uploads your picture to Facebook — now it will alert you about the photo, even if you aren’t tagged in it.The company is improving privacy settings and expanding its use of facial-recognition technology “to prevent people from impersonating other people” on the service. Users will now be asked to grant Facebook permission to use facial recognition broadly across its products. [Kurt Wagner / Recode]
Stitch Fix released its first-ever earnings report, and its shares fell by 12 percent. The online personal styling service is spending more on advertising and attracting new customers that want more less-expensive clothing, so CEO Katrina Lake said the company will increase lower-price-point sales this year. [Jason Del Rey / Recode]
Bitcoin prices are moving around a lot. Because bitcoin. Something called Bitcoin Cash is way up. Plain old bitcoin fell dramatically and is climbing back up again.
Ziff Davis executives addressed their new employees at Mashable, who promptly leaked the comments to the press. Reasonable advice from Ziff Davis COO Steve Horowitz to the company, which he bought at a fire sale price: “You guys are a Coke brand. Never forget that. Let’s make sure that we’re doing everything we can to stay at that level and not get down into Tab village.” [David Uberti / Splinter]
Top stories from Recode
Bitcoin and other cryptocurrencies are just getting started, says Spark Capital’s Megan Quinn. An investor in the crypto trading platform Coinbase, Quinn says “the toothpaste is out of the tube,” on the latest episode of Recode Decode.
This is cool
The Procter & Gamble toilet paper brand Charmin has opened a pop-up space near Times Square in New York City to offer 14 clean and free public bathrooms through Christmas Eve. Of course, this is a marketing stunt called an “out-of-home (OOH) activation,” a way to create a more personal touch with audiences as digital channels are dominating marketing strategies.
57 startups became unicorns this year and seven lost their horns
2017 is the third-busiest year for companies reaching $1 billion valuation.
The unicorn club gets new members by the week. This year alone, 57 startups around the world attained unicorn status with a valuation of $1 billion or more, according to data from venture capital tracker PitchBook.
Seven companies that were once considered unicorns have seen their valuation dip below $1 billion so far this year, either through down rounds or down exits. Last year there were only three down rounds or exits. The Honest Company and Prosper both saw their valuation shrink below $1 billion in subsequent funding rounds, according to PitchBook. Down exits this year included Souq.com, which was acquired by Amazon for $650 million, and Shazam, which Apple purchased for $400 million.
Overall 2017 wasn’t the biggest year for unicorns — that award goes to 2015, which boasted 81 new unicorns — but it certainly has been busy.
Social platform Reddit, bitcoin marketplace Coinbase and ride-hail company Careem are among the notable entrants this year. Synthetic biology company Ginkgo Bioworks is the latest inductee into the group, thanks to a $275 million funding round last week.
Altogether there are now a total of 227 active unicorns, according to PitchBook.
Here’s a look at the companies that have attained unicorn status this year, by their valuation and how much venture capital they’ve raised. Revenue data is available from the few private companies that made that information public. Click on a company to see its industry category.
A few notable stats from this year’s unicorns:
- Content recommendation platform Toutiao had the highest valuation, VC raised and revenue of all the unicorns this year.
- Four startups — Outcome Health, SenseTime, VIPKid and Mobike — had at least one female founder.
- About half of this year’s startups focus primarily on information technology and software.
The PitchBook data included goes through Dec. 14.
As GDPR Looms, Privacy Tech Is On The Rise
AdExchanger |
The May deadline to comply with Europe’s General Data Protection Regulation (GDPR) is swiftly approaching, and ad tech and security startups are forming a new industry: privacy tech. Companies like PageFair, Evidon, Prifender, Tealium and Segment hope to capitalize with GDPR compliance solutions for brands, publishers and even other ad tech vendors. The International Association… Continue reading »