Marketing 101 By Mike French email@example.com
A Technological Advertising Tsunami is on Its Way!
eady or not – technology is advanc- ing the world of marketing so rapid- ly that we can barely keep up. Internet ad revenue hit $60 billion in 2015, more than a 20 percent increase over 2014. Mobile ad revenue grew by 66+ percent. The speed of digital business is chang- ing how we communicate and sell prod- ucts and services. Did you see these coming? Airbnb, Kickstarter, Task Rabbit, and Uber – they found innovative ways of doing old things, just to name a few. The way we do advertising is changing dramatically. This new way of advertising will affect how auto recyclers must do business in the future. If you’re not already doing so, or at least gearing up to be able to, you must sell your parts elec- tronically or future parts sales will dry up.
Look at What’s Happening Advertising trends to be aware of:
• Automated instant sales with fast delivery, and follow-up: Even though this concept has been around for a little while now, it is becoming the expected way of doing business. Auto responders connect to a customer who just made a purchase. Details about their purchase is emailed to them, including the tracking number, if applicable, and other shipping info relat- ed to the order. You see examples of this through Amazon Prime®. It automati- cally includes up-sell offers such as, “here is something else you may also like,” and one click will add the item(s) to the sale. • Augmented Reality (AR): AR gives brands the opportunity to unexpectedly integrate the digital world with the real world, which appeals not only to younger tech lovers but it also engages just about everyone from children to grandparents. You’ve already seen AR technology at work: AR creates the yellow first down line during football broadcasts. But, its pres- ence in advertising is about to take a quan- tum leap. It has exploded across the world with the Pokémon-Go phenomenon.
28 Automotive Recycling | September-October 2016
In a nutshell, AR allows smartphone users to point their phones’ cameras at certain objects, be it a print advertisement or even a object like a coffee cup, that will trigger a 3D video. Almost all augmented reality campaigns are pretty amazing, and some brands are using the technology to create something really memorable that people talk about and share. Recently at a train station in London, England, signs in train stations allowed passers-by to interact with the models featured in the company’s ad campaigns. The strength of augmented reality advertising is that it cre- ates an experience consumers will quick- ly share with others, turning them into the brand's ambassadors. That’s how the Pokémon phenomenon exploded from just a handful into millions of users in just two weeks! • Programmatic advertising: Program- matic advertising automates the process of media buying by targeting specific audiences and demographics. It typically refers to the use of software to purchase digital advertising, as opposed to the tra- ditional process that involves requests for proposals (RFP’s), human negotiations and manual insertion orders. It’s using machines (robots) to buy ads, basically. Does it work, yes! It’s gets the right mes- sage in front of the right buying audience immediately and cheaply. It’s impossible to tell what portion of advertising is now traded programmatically, but it’s defi- nitely growing fast. In a nutshell, Programmatic media buying, marketing and advertising is the algorithmic pur- chase and sale of advertising space in real time. During this process, software is used to automate the buying, placement, and optimization of media inventory via a bid- ding system. • Google and Facebook are the Giants!
Together, Facebook and Google control 76 percent of internet advertising growth. Mark Zuckerberg has created an adver- tising monster you must contend with.
Between 2014 and 2015, Facebook’s ad revenue grew 59 percent, with the bulk of ads running on mobile devices, and Google’s ad revenue was up 18 percent. • Snapchat campaigns: Snapchat is a hugely popular free mobile messaging application used to share photos, videos, text, and drawings. I hesitated to include this because marketers are faced with the challenge of engaging via an app in which the content disappears in seconds. Yet a recent Comscore report found that with 32.9 percent penetration, Snapchat was the third most popular social app among 18-34 year-olds (behind Facebook and Instagram, but ahead of Twitter, Pinterest, and Vine). And if you look at just the 18- 24-year-old base, the app has 50 percent penetration. The company is said to have about 30 million active users and claims that people send and view more than 700 million pictures and 500 million “sto- ries” – which allow brands to create longer narratives that last 24 hours – a day. Successful campaigns have been done by Acura, McDonalds and Burger King. The company just announced the launch of Snapchat Partners, its long- anticipated advertising API (application programming interface), which will hook up more than 20 tech-minded compa- nies. The API promises to expand adver- tising dramatically on the platform in the long run. “We just want to make it easier for marketers to buy ads on the platform,” the company’s founder (Khan) explains. “We want [brands] to have a place where they can tell their stories.” So much opportunity to utilize! We live in an exciting age with all this innovation and technology! “Never before in history has innovation offered promise of so much to so many in so short a time,” says Bill Gates.
Mike French, president of Mike French & Company, Inc., can be reached toll free at 800- 238-3934, or visit his company’s Web site at www.MikeFrench.com.