Digital American Newsletter

In the wake of Facebook’s privacy shenanigans, there’s been lots of discussion about how consumers’ reactions will impact digital marketing. Here are the most intriguing findings from recent research.

• Half of Americans following the Cambridge Analytica scandal closely say they will use Facebook less in the future. Women and suburbanites are the most likely to cut back.
• With fewer party differences than you might imagine, 46% of the US wants more laws controlling how companies can use their personal data. At the same time, only 41% believes Facebook will follow data privacy laws. Ouch!
• Consumers are done with cookies. 75% are now rejected on mobile devices.
• 63% of Americans want to receive fewer targeted ads.
• The number of consumers using ad blockers on their desktop/laptop continues to climb. Privacy is not the top driver, but it is an important contributor.
• 17% have taped over their device’s camera to make sure no one is spying on them.

 
Only time will tell if these are short-term reactions to news headlines or if consumers will significantly change their online behavior and social media consumption to shield their privacy.

Sources: eMarketer 2018, Globalwebindex 2018, Investors Business Daily 2018, Reuters 2018

Esports—professional competitive videogaming—is watched by over 20 million Americans, including 21% of male Millennials. That’s roughly the same percentage that watch professional baseball or hockey.

The average esports enthusiast is 26 years old and male. However, 29% of the audience is female and the sport’s reach extends to Gen Xers and Boomers, too.

Twitch, the largest live streaming video platform for esports, had more concurrent viewers in January than either CNN or MSNBC. Let that sink in for a minute—more viewers than well-known cable channels. Twitch’s viewership is growing at double digit rates. While most esports are watched online, key tournaments have sold out the Staples Center in Los Angeles and Madison Square Garden in New York.

The sports world is taking note. The Sacramento Kings have opened an esports facility and the Warriors sponsor an esports team. Traditional TV broadcasters including NBC have added esports to their schedules. The International Olympic Committee is even in talks about including esports to the Paris games in 2024.

Marketers are embracing esports. Nielsen has started measuring esports viewership and brand exposure. Companies as diverse as Red Bull, Arby’s and Geico market via esports sponsorships and ads.

Sources: Foley & Lardner 2018, Games Industry 2018, GlobalWebIndex 2018, Newzoo 2018, Nielsen 2018, Sports Illustrated 2017

Influencer marketing continues to be the hot trend. But does it deliver results? The answer is “Yes,” followed by a big “But…”

Here’s why working with social influencers is so powerful.

• Consumers say they enjoy influencer posts more than TV commercials and find them more authentic, unique, relevant and engaging.
• Significantly more consumers remember key brand messages from sponsored social posts than from TV commercials. The difference is pretty huge.
• The fact that a post is sponsored doesn’t matter to most people. Over 60% say they don’t check or they don’t care.
• Less than half of consumers know which hashtags indicate content was paid for by a brand.
• Consumers tend to buy products suggested by influencers with proven expertise. They are less swayed by a social personality’s number of followers.

 
Now, for the big, “But…”

• Brand name recall—both aided and unaided— is notably lower for influencer posts than for TV ads. When I say notably lower, I mean 50% lower. Ouch.

 
Sources: Nielsen 2018, ZINE 2018

46% of Americans’ online shopping time is dedicated to “just browsing,” looking for new products and brands. Only 27% of time in physical stores is spent exploring. The other 73% is mission shopping, with a clear goal to buy a specific item as quickly as possible.

When consumers browse, they often stray from their current brand. 59% of browsers say they purchase a different brand, 28% are tempted to change but ultimately re-buy their previous choice, and a mere 13% remain completely faithful.

Across the top 30 purchase categories, roughly two-thirds of consumers say they are not brand loyal. Most CPG categories—both food and personal care—have average loyalty.

Interestingly, the sooner a consumer thinks about a new brand or discovers it during their browsing, the more likely they are to buy it.

It’s time for brands to optimize their online channels for search and discovery, their brick and mortar outlets for speed and findability, and their marketing for top-of-mind awareness.

Sources: Marketing Charts 2017, McKinsey 2017, National Retail Federation 2018