5 Digital Trends in 2017

As we close off 2016 and reflect upon the year, we also try to look ahead into 2017 hoping that everything will be good in the digital space. For the record, I’m not someone who is an expert in spotting trends, but these are some things I feel will make an impact in the digital landscape in the coming year.

The Rise of Chat-bots

Chatbots are starting to gain some momentum among brands, especially those who manage customer service. The aim chat-bots is to free up the resource needed when answering day-to-day FAQs through automation when it comes to providing troubleshooting matters. However, chat-bots are still at an infancy stage. They still lack the “human touch” in terms of being able to communicate the same message differently to different audiences and they also can’t distinguish sarcasm as well. But I have a feeling that in 2017 more and more brands will start to explore and experiment with chat-bots and how it can help customer service.

Find out more about some best chat-bots around

Big(ger) Data

We all know by now the importance of data and the overused term “big data”. Often than not, marketers are only scratching the surface of how they can use all that collected data. But the more we dwell deeper into all that data and complex analytics, we hope to derive cognitive insights into helping us understand and predict user behavior. This would then benefit marketers in making better decisions during campaign planning and targeting of relevant messages more efficiently. 2017 will see more brands and companies relying on data and analytics to drive their businesses.

VR / AR

Virtual Reality (VR) and Augmented Reality (AR) have been around for quite a while. Companies like Layar, which allow brands to leverage its services to develop AR based engagement, have been around since 2010. However, 2016 saw the people at Niantic Labs (creators of Pokémon Go and Ingress) took AR to the next level, making Pokémon Go the most played game app ever. Meanwhile Mark Zuckerberg of Facebook gave the world a glimpse of how the future of Virtual Reality will look like during their Oculus Connect event back in October. Perhaps these 2 milestones will set the tone on what is to come in 2017 in both AR and VR worlds.

360 Videos & Live Streaming Videos via Facebook

It’s not very uncommon now to see brands leveraging on 360 videos and live streaming of events on Facebook to promote brand messages. But I feel the adoption in emerging markets as well as smaller brands are slow because of the higher production cost needed for the equipment to create these videos. But as we move into 2017 however, I get a feeling that more of these equipment will be available at a more affordable prices (price reduction due to higher demand). Basic equipment that allows you to create 360 videos are now made available and affordable via crowdfunding sites such as Indiegogo and Kickstarter.

#TrueStory?

2016 was the year that “Fake news” made the news. Facebook was also accused of promoting fake news which has influenced the outcome of the US presidential election. However, Mark Zuckerberg has pledge to develop tools to combat fake news. In 2017, this would definitely impact what people think is a credible new source or otherwise. I feel that this would also have an impact on brands embarking on branded content or content association strategy. An interesting article on reddit.com talks about exactly how click-bait type article also co-relates with fake news.

** Disclaimer: All above are based entirely on my gut feel and that I won’t be responsible if these trends don’t actually happen. **

The New Five-Second Rule

Is it that hard to believe that in future, you may only have 5 seconds to market to your consumers on YouTube or any video platform for that matter? When I say video platform, these include Facebook, Instagram, Vine, Twitter and many others. Let me explain why so.In a study done by Microsoft, the average attention span on ads dropped from 12 seconds to 9 seconds since the 2000’s. 

Source: Microsoft attention spans, Spring 2015

But one may argue, that is because in the past (pre-2000s), consumers were less exposed to ad clutter and had slower internet connection speeds, thus spending longer time to consume content. Today, advertisers need to compete for attention on a space that is cluttered with ads even on video platforms, which makes the consumers prone to ad blindness or even annoyance to a certain degree, resulting in them skipping or closing ads all together the moment they see one popping up.

My 3 year old son is the best example. He presses the “Skip Ad” button on Youtube, if a pre-roll video ad is not interesting enough for him. Hence in future, the first 5 seconds is probably the most crucial to your future consumers, the Generation Alpha.

Relevant Content
The last thing anyone would like is to see something irrelevant being showed to them. It’s not only annoying, it’s also time wasting. This is where your ads have to be targeted and targeted well. Taking my son as an example, he skips ads that doesn’t resonate with him like a shampoo ad, but will watch the whole video if it’s something he can relate to like a Hot Wheels toy ad. The point here is, consumers will skip your ads regardless, if the content of the first 5 seconds is not something relevant to them. Yes, targeting is important, but it’s also equally important to make the first 5 seconds of your ad count. The same rule applies if you’re developing display type ads. Remember to be relevant to your target, otherwise it will be closed or skipped.


Short Form Goes a Long Way
While we talk about the importance of the first 5 seconds of your video ad, the general rule of online video ads is not to have it too long. No one is going to sit and watch a 10 minutes video about your company products or services unless they are made or told in an interesting way. Even that, 10 minutes is way too long these days (remember, users only have an average of 9 seconds attention span). Ideally an online video ad should be no more than 15-20 seconds and a strong call to action to lead them to a page for them to get more information, given that you can only say so much in 20 seconds. The key here is the first 5 seconds of what your user sees in that video. It will either make them stay on, or make them leave.


YouTube vs Facebook
We need to be mindful that putting a video ad on YouTube and Facebook are very different in terms of how they are presented. YouTube plays ads at the start of a video (pre-roll) and in the middle of a longer video (mid-roll), and users can usually choose to skip the ads after 5 seconds.

Videos on Facebook on the other hand are presented in a person’s news feed. By default, Facebook auto-play the video without sound, unless the user changes the setting to disable “auto-play”. I read somewhere that there is still a large amount of Facebook users still have “auto-play” turned on (something like 65%) as they don’t know how to go about turning it off. Which means on Facebook, your ads has technically less than 5 seconds to get someone’s attention while they are scrolling through their news feed. And not to mention you got to do it without the aid of sound! Sounds insane isn’t it? In one study of Facebook video ads, 41 percent of videos were basically meaningless without sound. Now imagine putting up that 10-minute long corporate video as a Facebook ad. Not such a good idea now isn’t it?

One way to reduce someone missing your video ad is to have an interesting caption that will act as a hook to get users interested enough to pause midway through scrolling on their news feed, read the copy, and then click to watch the video. According to wired.com, Facebook says that including captions on video ads increases the amount of time people spend watching them. For ad and brand recall, it is also recommended that advertisers show captions, logos, and products in ads, especially in the first few seconds.

5 Reasons Why Brands Don’t Spend (as much) on Digital Marketing

Having been in the digital industry for quite a while, I’ve seen growth of the industry in terms of services, available platforms as well capabilities in terms of analytics and automation. However, why is it that brands still haven’t shifted their advertising and marketing spend to embrace digital as a channel? Shouldn’t it be the norm now for brands to do so, given that the industry has advanced and matured over the years to the point where it is now no longer termed “new media” but “mainstream media”? Yet, most brands only dedicate a small portion of their total advertising budget to digital channels and campaigns. Here are some of the reasons this could be the case:

Where do you even start?

The digital landscape is fragmented. VERY fragmented. There are many components and parties that rely on each other to make things work. Creative agencies, media agencies, publishers, ad serving, tracking, etc. In fact, it’s so fragmented, that there are providers that provide overlapping services to one another, and it can be totally confusing for someone to grasp what each service provider really does. Just to give you an idea, here is an image from chiefmartec.com on the marketing technology landscape.

(click here to view full image)

Believe me, I sometimes get confused as well after looking at this chart. For brands who want to invest in digital after seeing this, you can understand why there is confusion and doubt.

Don’t know the ingredients to make that sauce

Digital channels or media as a whole are made up of 4 main pillars: Display, Search, Social and Mobile advertising. Those are then fueled by content, which relies on optimization platforms and analytics to get the right balance. The question is, what is the right balance? How do you choose your digital media mix? How do you choose what platform to be on? What services to use? It’s like cooking. You first have to know the ingredients and cooking methods in order to make a particular dish. This is where the majority of brands rely on agencies to provide them consultancy on how to go about doing it. The challenge is always working with the right (and competent) agency, who knows your business well in order to recommend what you need to fulfill a business objective. But in my opinion, that in itself has its own set of challenges. (Read morehere)

RTB, DSP, DMP, CPC, CPA, WTF…

Digital jargons are scary. There are so many metrics and measurements that are being used to the point that brands (and also agencies) sometimes do not really know what metrics they should be looking at. It doesn’t help that every year, that jargon list grows. Brand owners who do not know how to justify these metrics to stakeholders would tend to stay away, hence playing it safe by only investing to what they know (i.e. traditional media) – they fear the unknown. Again, the best way is to keep abreast with what’s happening in the digital marketing world. Agencies should play a bigger role here by educating brands through workshops and training, so that brands are constantly updated and know how to look at these metrics and make sense of it.

“I don’t want to know what I don’t know…”

In this case, it’s more like “I’m afraid of what I will know”. For digital, (almost) everything is trackable. Hence, for a brand owner, it could be something that may work against them. I once asked a client why they did not want to run a particular campaign on digital. They said it was too technical for them, and everything is trackable to which, should the campaign not do well, it would be hard for them to “hide” the evidence and justify to stakeholders! But then I asked, why do you think it would fail in the first place, given we have tools that can optimize the campaign? What if you can show your bosses that you can actually track and show proof of success? To which they became interested and asked me to explain more. The main thing here was more the case of the client not knowing the benefits of investing in digital. All it takes is a little education and effort to try it out to be able to understand its benefits.

Digital is expensive!

This is kind of a chicken and egg situation. Digital investments can initially cost a lot to start. With cost of creative development, cost of media, setting up of platforms, re-occurring cost for services, etc., you could also see why brands tend to sway away from this. However, most of these are initial one-time setup costs. For example, if you want to run multiple creative ads online using display advertising, you would initially have to pay a hefty fee for the design of dynamic ad templates. But once those dynamic ad templates are created, it doesn’t cost much to have multiple ads running off those templates. You could then update these creative in almost real-time whenever necessary. Which other traditional medium lets you do that? Similar to having a mobile application or building a website, the initial setup does seem expensive, but in the long run, the cost will justify the investment if you do it right.

The Death of SMS?

(Image via ispyoo.com)

SMS or Short Messaging Service, has been one of the longest and often used (and sometimes overused) form of mobile communication by both consumers and marketers.

But, with the rise of mobile chat applications such as Whatsapp, Viber, WeChat, Skype, Line, and even Facebook Messenger, it's not really surprising that we see a decline in overall SMS usage here in Malaysia.

We are already seeing a decline of total SMS sent in Q2 2014 vs Q2 2015 in Malaysia (13,193 mil vs 6,855 mil) by about 48%. And the usage still seems to be in a downward trend in 2015 in Q1 (7,768 mil) vs Q2 (6,855 mil). That's a reduction of 10% usage in just one quarter alone!

Source: Communication and Multimedia Pocket Book of Statistics, Q2 2015, MCMC Malaysia.

In the near future, mobile chat applications would probably replace SMS as a preferred form of future text communication as it gives the user more flexibility as well as options. Mobile chat applications allows:

• Real-time response
• Multi user participation (groups) 
• Sharing of files 
• Most importantly - No extra charges to send a message if you're on a data plan or using WiFi

The SMS usage numbers will only decline even further within these 2-3 years as more mobile chat applications become available, mobile data prices becomes more affordable and smartphone usage increases.

However, one thing to note that while SMS usage is on the decline, it's still regarded as a more reliable form of messaging compared to chat applications. SMS is also available as a default to all mobile phones, while chat applications are still very fragmented in nature, meaning, not everyone are on the same chat platform or application as you.

So whether SMS will still be around in the next few years remain to be seen, but the days of SMS are certainly numbered!