Marketing Pilgrim Published: “Content Theives Rake in a Quarter of a Billion in Ad Dollars Per Year” plus 1 more

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Content Theives Rake in a Quarter of a Billion in Ad Dollars Per Year Posted: 18 Feb 2014 03:05 PM PST It’s 2 o’clock. Do you know where your ads are? According to the Digital Citizens Alliance, a large number of your legitimate ads are working to support online content thieves. They estimate that these rip-off sites will earn around $227 million in annual ad revenue. The 30 largest sites that specialize in downloaded movies, music and TV shows will each make more than $4 million. Even if you don’t agree that download sites cut into entertainment industry profits, is that where you want your ad dollar to go? “Good Money Gone Bad: Digital Thieves and the Hijacking of the Online Ad Business” calls out four types of sites and happily names names. The biggest offenders are the 144 peer-to-peer file sharing sites. Then there are the 283 Linking Sites. These sites don’t actually host any content, they just act as a giant card-catalog for downloadable material. There are 75 Video Streaming Host Sites and 94 Direct Download sites. These are the ones where you can upload large files to share with others – a common way to share weekly episodes of TV shows with fans who can’t see the show in their country or just want a digital copy. The largest sites get more than 5 million unique visitors a year so it’s easy to see how the ad dollars can add up. The Digital Citizens Alliance says the trend is going to continue because the sites generate a lot of money and have a low barrier for entry. It doesn’t take much money or effort to set up a file sharing site. And since so many people are online looking for free content it’s not like you have to work hard to get traffic. When one site goes down, another pops up. It’s like digital theft whack-a-mole. But the websites are only half the problem. The ad system is also to blame because it’s become so automated. In the last three years we went from 76% of ads being programmed by hand to only 36%. Magna Global says that number will drop to a miniscule 17% by 2017. Where’s the fix for that? I’m not sure there is one. The online ad market is too huge to monitor on an ad-by-ad basis. We have to use automation tools to keep content flowing. This leaves it to the ad networks to build in mechanisms that will stop content thieves from putting ads on their sites in the first place. Frankly, I’m not sure that’s even possible. Whack! There’s another one.

Tribals Like Instagram, Paypal and Local Mobile Deals: Is This Your Customer? Posted: 18 Feb 2014 12:48 PM PST We used to think of the mobile owner as one of two types of people; those that owned a smartphone and those that didn’t. Smartphone users were more tech savvy. They were younger, trendier and they used their device to do just about everything other than make phone calls. Experian’s new report, “The Always-On Consumer” tells us that there are now 7 types of mobile users, each with very different needs and habits. If you can plug your average customer into one of the 7 boxes, then Experian’s report will show you how to reach them. Let’s take a closer look at the breakdown. Voted Most Likely to Shop These two groups only represent 18% of mobile users, but it’s a percentage you want to reach. They spend a lot of time on social media and they regularly use their mobile device to shop or do shopping research. They’re also the groups that are most likely to search and use local deals on the phone. Prodigies: Making up 5 percent of mobile users, Prodigies are constantly connected and are the first to adopt new technology. They are a strong market for Windows phones and open source platforms that allow for greater customization. Chrome, Google+ and Google Talk have high concentrations of Prodigies among their users. Prodigies are nearly 10 times more likely than the average smartphone owner to say they would be interested in receiving ads on their phones and seven times more likely to say they would buy the products in those ads. Likewise, they are nearly six times more likely to purchase products they see advertised on social media. Tribals: This group is hyperconnected, often through multiple devices. Thirteen percent of consumers are Tribals; they are both heavily influenced by and strong influencers of others through social media. Tribals are the most likely to use the Internet to plan shopping trips and are influenced by Pinterest, Instagram, Flickr and other highly visual properties.   Work and Family The next two groups see their phones as tools that help them get their work done more efficiently and stay connected to their family and friends. The key to this group is helping them find exactly what they need quickly and at a good price. Personals: Personals, as described above, are mobile-savvy users who love their phone but are increasingly cutting out the middle man when it comes to connecting with friends, preferring direct messaging to social media. In addition to heavy messaging apps usage and low social media usage, Personals are 2.3 times more likely than the average smartphone owner to say they would be interested in receiving ads on their phone and 60 percent more likely to say they would actually purchase products advertised on their phone. Pragmatists: Pragmatists make up about 18 percent of consumers and are mobile professionals who use their phones primarily to stay on top of work and home. Pragmatists are open to advertising on their phones, but they need to get something in return. Otherwise, this segment is less likely than average to purchase items they see advertised on their phone.   A Phone is Just a Phone It may be hard to believe but there are 3 types of mobile phone users who won’t crack if they forget their phone at home one day. These groups tend to skew a little older. They love Golden Corral, NCIS and print magazines and newspapers. They’re also primarily Android users so keep that in mind if you’re creating a marketing app. Browsers: At 24 percent, the largest group of consumers is Browsers, those that are still learning about all the things they can do with their phone, primarily browsing the mobile web and consuming a bit of news. Among Browsers who use social media, only 3 percent say they are likely to purchase products that they see advertised on social sites. Even fewer Browsers say they are likely to purchase products they see advertised on their phone. Occasionals: Eleven percent of smartphone users are Occasionals, those that use their smartphones mostly for making calls, playing a game and checking the weather, while the myriad of additional features go unused. Occasionals are much more receptive to digital campaigns on their personal computer and more open to native advertising in print newspapers and e-readers. Talkers: Mobile use among this group is fairly light. At 13 percent of consumers, Talkers use their phone mainly for verbal conversations and the occasional video phone call.  As such, digital and mobile campaigns are most effective with this group primarily to supplement campaigns run in traditional media. Now, you have to ask yourself. Which of these groups best represents your current average customer? Better question – which one represents your IDEAL average customer. If you’d like to reach the influential Tribals, pass on the local newspaper ad and spend your time building up an Instagram account. Of course, it’s not quite that simple, but Experian’s new report has lots of tips to help you define and reach your target audience. Best of all it will only cost you your contact info and 20 minutes of your time.

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