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China ad spend to surge in 2019, driven by digital
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Dentsu Aegis Network has forecast advertising spend in China will rise by as much as 7% in 2019, driven by the middle classes’ purchasing habits and a greater amount of disposable income.

Digital’s ongoing growth within the market, up 15.8% in the first three quarters of the year to RMB 717bn, and digital out of home (OOH) increased 14.2% over the same period.

However, declines across traditional media recorded falls from newspapers (28%), magazines (9%), and television (5.5%).

At more than RMB 125bn, pharmaceutical companies led the way for ad spend. Fastest growing sectors include Entertainment and Web services. The largest decline, Real Estate, showed a drop of -34.93% drop year-on-year.

The forecast, part of a global ad report, predicts growth around the world will increase 3.8% in 2019 to reach a total of $625bn, with Asia Pacific and North America continuing to be the strongest growth market, contributing 42% and 30% respectively.

Western Europe will account for 15% of the global increase, along with Latin America (10%) and Central and Eastern Europe (4%).

“China’s digital economy continues to lead the globe, both in terms of scale and advancements made. It is therefore unsurprising that China remains a core driving force in the year ahead, with further positive growth forecast,” said Susana Tsui, group CEO, Dentsu Aegis Network China.

Tim Andree, global CEO & chairman of Dentsu Aegis Network, added: “As the world transitions to a digital economy, advertising is at the leading edge of change. Digital connectedness – driven not only by advances in technology, but the speed of consumer adoption – has fundamentally changed the shape of our business and will continue to do so. Even where digital penetration is highest – such as China and the UK – the trend shows little sign of slowing down.”

Marketers ‘must solve data fragmentation’ in 2019
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Marketers need to reevaluate how they convert audiences throughout each stage of the purchasing journey, according to a new report.

Criteo surveyed 901 direct response marketers in partnership with Euromonitor International to better understand the challenges of converting customers in today’s digital ecosystem.

The results underscore how fragmented ad budgets have become as marketers look for results across so many different channels.

From paid display and social media marketing to content and SEO, marketers were asked where they spend their money and which channels are most effective.

Key findings include:

  • Conversion Metrics are Different Across Different Companies: Marketers have a lot of different ways of defining what makes effective conversion. New revenue (35%), new customer rate (33%), and cost per action (30%) proved to be most popular.
  • Data Availability and Quality Represent Key Challenges in the Conversion Phase: Nearly half (40%) of marketers struggle to find data on the online/offline shopper connection. This negatively impacts brand conversion given the prevalence of omnishopping. In addition, fragmented data makes it difficult for marketers to gain a true understanding of customers and to optimize future campaigns.
  • Reengagement Across Web and App Grows in Importance: Existing retailer customers spend more on average than new shoppers (51%) and shopping app customers have high loyalty tendencies (41%). Compelling discounts, personalization, innovative ad formats and engaging designs were reported to be three of the most successful tactics for reengagement campaigns.

The Criteo State of Ad Tech Report surveyed over 900 digital marketing managers and executives working in retailing, brands, travel companies, and other services companies with online sales channels.

“Marketers understand that conversion can happen at any point in the shopper journey,” said Jaysen Gillespie, Vice President, Head of Analytics & Insights, Criteo. “We found that fragmented data, tech giants, and personalization are all top-of-mind for marketers going into 2019.”

View the full findings at: https://www.criteo.com/wp-content/uploads/2018/12/StateOfAdTechReport_Global.pdf.

GDPR still causing small business owners problems
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GDPR is still causing small business owners problems, with many admitting that they are ‘clueless’ when it comes to the do’s and don’ts of data privacy regulations.

Aon commissioned researchers to poll 1,000 small business owners and found that many have procedures in place which could result in multi-million pound fines through ignorance of the new law, brought in from 25th May 2018.

More than a quarter of those polled allow staff to use their own computers, tablets and phones for work purposes which contravene rules as personal data could be stored unencrypted at home.

One in 10 also revealed they have visitors books in their HQ – where visitors can freely see details of others who have been there previously.

Paper diaries were still used by 26 per cent of businesses – which could contain private information or customer details and be easily misplaced.

And ten per cent said the circulation of printed out sponsorship forms – which often contain names and addresses – is common at their place of work, which is another contravention of GDPR rules.

Chris Mallett, a cyber security specialist at Aon said: “As the results show, many businesses could be in breach of GDPR – most likely without even realising it.

“Visitors books, allowing staff to use their own mobiles for work purposes and even seemingly minor things like distributing sponsorship forms around the office carry risk.

“Yet these sorts of things are commonplace among businesses big and small across the UK.”

TOP 10 MOST COMMON WAYS SMALL BUSINESSES ARE, OR COULD BE BREAKING GDPR RULES:

1. Allowing staff to use their own computers, tablets or phones for work purposes – if personal data isn’t encrypted
2. Staff using papers diaries used for work purposes and containing personal information – major risk of them being misplaced or falling into the wrong hands
3. Using training materials which feature full details of real life case studies
4. Using images which feature customers to promote your business
5. Storing files which potentially contain personal data outside of a defined structure/naming system
6. Using images to promote your business which feature members of staff wearing nametags
7. Holding unencrypted CCTV footage where individuals are recognisable
8. Recording customer calls which capture customer card details
9. Visitors books where visitors can see other people’s information when signing in – such as names, company they work for, their vehicle registration number etc
10. Staff members circulating sponsorship/charity donation sheets

Survey highlights creative sector’s ‘astonishing’ gender pay gap
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Research conducted by one of the UK’s largest contractor accountants has revealed that men in the creative industry earn up to 26% more than women in the same roles.

Hemel Hempstead-based SJD analysed salaries of both male and females in the creative sector revealing some astonishing pay differences.

Copywriters and graphic designers, for example, see pay differences of upwards of 25% between males and females.

However, the IT and Engineering sectors have the largest pay gaps, a 30% difference, which has seen males earning a huge £15,000 more than females.

The gender pay gap has been an increasingly important and developing conversation for a number of years within the media and government.

Increasing pressure has been put on businesses to disclose their gender pay gaps and redress the balance to aim for more equal pay.

The survey by SJD Accountancy saw more than a 1,000 contractors questioned, and data gathered on their salaries to create a better picture of which sectors are closing the gap and which are still struggling to find parity.

Derek Kelly, CEO of Optionis Group which owns SJD Accountancy said: “The gender pay gap has been a topic of increasing conversation, putting the difference in salary into real terms has been shocking.

“This information now highlights the genuine impact that this can have not only on employees but their families and long-term prospects.”

To find out more details about your industry and the gender pay gaps SJD has launched an interactive tool, visit www.sjdaccountancy.com/gender-pay-gap-tool for more information.

Mr Kelly added: “The tool helps to give workers, whether in permanent or temporary roles, more of an insight into the pay gap within their industry. This improves understanding of the pay issues within certain sectors.”

Online sellers ‘not using own data to improve business performance’
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Online sellers are using e-commerce solutions to gather better data insights, yet many are failing to use it to make better business decisions, according to new research.

Whilst 42% are using data to improve customer service, only 24% are using data for buying behaviour analysis and two thirds are not using it to improve the user experience.

The survey of 559 global B2B organisations by Sana Commerce found that many are still only focused on using e-commerce for sales and improving online shopping for customers – traits associated with e-commerce 1.0 and 2.0.

48% identified driving sales as the top priority for their e-commerce solution and 38% said it was to improve the user experience.

Despite having data available at their fingertips, online sellers are not using their data to achieve desired business performance outcomes. The main response to tackling competition is competing on price (47%) and increasing the online customer experience (38%) rather than enhancing the proposition.

Only a third said they would use data to improve personalisation and 26% said they would use data to improve targeting and account-based marketing.

Sana says many online sellers seem to be overlooking the true value of e-commerce 3.0 and improving integration with key business systems such as the ERP to drive broader business benefits.

Michiel Schipperus, CEO and managing partner at Sana Commerce, said: “It’s encouraging to see online sellers building on their digital transformation strategies and considering the implementation of these advanced technologies, but it’s important to first establish how they can be implemented strategically. E-commerce 3.0 has enabled better integration between internal systems as a growth strategy and way to improve businesses agility. M2M and other forms of automation represent a significant investment, so e-commerce businesses need to ensure they’re being used to their full potential and improving key business drivers.”

The survey of B2B organisations in Europe and the US was undertaken by independent market research company Sapio on behalf on Sana Commerce. You can download the report here.

Mobile ad spend growth set to slow to 12% CAGR
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The rapid growth in mobile advertising expenditure is set to slow significantly over the next five-years, according to Strategy Analytics.

After growing over six-fold between 2013 and 2018, growth in mobile advertising revenue will fall to a 12% CAGR and the market value will reach $222 billion in 2023.

In short, while the mobile share of digital advertising will grow rapidly in less developed advertising markets, in advanced markets the share over mobile is reaching a plateau.

Strategy Analytics expects mobile advertising to continue to suffer from headwinds including increased cautiousness following Facebooks Cambridge Analytica scandal and the implementation of GDPR.

Other key findings include:-

  • Mobile advertising will rise from to 67% in 2023. In markets where multi-device use is high, like the U.S., mobile advertising will account for just 58% of all digital in 2023, while in mobile-centric markets like India it will reach 71%.
  • Asia-Pacific is leading the mobile transition, representing around 44% of global mobile ad spend across the period. At a country-level and in terms of absolute ad spend, the U.S., and mobile-first markets China and Japan will remain leaders although their positions will erode.
  • Search will remain the dominant mobile advertising format with 47% of ad spend across the period while mobile video ad spend will be the fastest growing (+16.5% CAGR over 2018-2023) driven by the adoption of 6-second mid-rolls, and vertical ad formats by industry leaders Snapchat, Facebook and more recently YouTube.

Brice Longnos, Analyst Wireless Media at Strategy Analytics, said: “Growth of mobile advertising in developed markets, where the largest brands and advertisers can be found, is slowing down as mobile competes with other screens for eyeballs, such as connected televisions. Meanwhile, in emerging mobile-first markets, mobile phones may be the primary screen for content consumption but ad budgets are lower. Therefore, the contribution to global mobile ad spend from those markets will be marginal.

“Furthermore, the progression of programmatic in display and video advertising will make ad spend more cost-efficient, increasing impressions and engagement per dollar spent. These three factors explain why we see mobile advertising expenditures slowing from 2018 onwards.”

Nitesh Patel, Director Wireless Media, added: “With mobile accounting a dominant share of revenues for leading social networks Facebook, Snapchat and Twitter in Europe, the restrictions imposed on customer data collection will be particularly felt as advertisers and publishers figure out the best approach for delivering targeted advertising while complying with regulation. In the long run, we expect advertisers to benefit as consumers giving consent will be more receptive and engaged with ad experiences.”

Vodafone, HSBC and Shell top UK valuable brand rankings
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Consumers place more value on innovation as food and drink is named the most innovative sector in the BrandZ Top 75 Most Valuable UK Brands ranking.

The rankings, compiled by  WPP and Kantar Millward Brown show newer brands Just Eat, Innocent, Deliveroo and Brewdog entering 2018 UK list, which has been extended to include 75 brands.

Vodafone remains at no.1 with an increase in value of 6% to reach $28.9 billion, followed by HSBC (+7%, $23.6 billion) and Shell (+10%, $20.3 billion).

The BrandZ UK Top 75 is worth $271 billion (around £205 billion) – equivalent to just over 10% of the UK’s GDP. The 50 most valuable brands on the list have gained 5% in total value in the last year, compared with the 2017 BrandZ UK Top 50. The top innovators increased brand value by 25% more than their rivals.

This growth has been driven by the Top 10 risers, which have grown at nearly four times the rate of the rest of the brands. The fastest riser is Prudential, which increased its brand value 40% in the last year, followed by Dyson (31%), Asos (31%), and Dulux (18%). The BrandZ research shows that consumers perceive these fast-rising brands as particularly innovative and good at communicating, and they also have much stronger brand equity than the average across the ranking.

The brands that have entered the UK ranking for the first time, which are worth on average $1.1 billion, include Just Eat (no.30), bet365 (no.44), Compare the Market (no.46) and Ocado (no.49). Consumers view them as highly differentiated, recognising them for ‘shaking things up’ and providing a great experience.

However, the older established names that remain at the top, such as Dove (no.10) and Shell (no.3), are worth $4.9 billion on average. These brands are considered less different, but more meaningful and top of mind.

Higher perceptions of innovation are proven to stimulate value growth: the brands in the BrandZ UK ranking that consumers perceive as the most innovative rose +18% in value in the last year, while the least innovative declined -7%.

David Roth, at WPP, said: “The nation’s most valuable 75 brands have all risen to the top in a highly competitive, crowded and uncertain environment. Consumers value innovation, and it is key to helping UK companies’ future-proof their brands, deliver sustainable growth and increase in value; ever more vital in a post-Brexit world.”

The 2018 BrandZ Top 10 Most Valuable UK Brands

2018 Rank Brand Category Brand Value (US$bn) Percentage BV Change 2017 Rank
1 Vodafone Telecom providers $28.9 +6% 1
2 HSBC Banks $23.6 +7% 2
3 Shell Oil & gas $20.3 +10% 3
4 BT Telecom providers $13.6 -4% 4
5 Sky Telecom providers $12.0 +11% 6
6 BP Oil & gas $11.8 +4% 5
7 Tesco Retail $9.1 +2% 7
8 Lipton Soft drinks $8.7 +6% 8
9 Barclays Banks $6.3 -7% 9
10 Dove Personal care $6.0 +1% 11

The BrandZ research indicates that the UK is still catching up when it comes to innovation. In 2017, consumers perceived the UK’s most valuable brands as only slightly more innovative than the average brand, putting them at risk from global competitors and new disruptors.

The innovation score across the 50 most valuable brands in the UK was 102; in 2018 this has risen to 105 (the average brand is 100). This is lower than the 50 most valuable brands in the Global Top 100 (113), the US (111), Indonesia and China (both 108), Germany (107) and India (106).

Jane Bloomfield, Head of Business Development at Kantar UK, said: “Established and new brands can learn a lot from each other. Those older brands that form the bedrock of the UK economy have great staying power, having built salience and meaning. To grow, they need to work on increasing consumer perceptions that they are different, innovative and relevant.  The disruptors entering the ranking, meanwhile, need to make their difference meaningful and salient to consumers – if they fail to do so they could have a short lifespan.”

Global marketing technology market valued at $100 billion
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The global marketing technology market is worth $99.9 billion, according to a study by accountancy Moore Stephens and research outfit WARC.

The study, carried out amongst more than 800 UK, North American, Asia-Pacific and European brands and agencies, was initiated to better understand the scale of investment into the sector, and reveals not only a huge existing market, but one that continues to grow exponentially.

When asked about the outlook for the market, brands expect to increase their investment in martech for the year ahead. This is particularly true in the case of Europe (excluding UK), where nearly two thirds (63%) said they expect their budgets to increase.

In the UK and North America, brands have increased their martech budgets by 44%, it’s now worth up to $52 billion. These brands are spending nearly a quarter (23%) of their budgets on martech, up from 16% 12 months ago.

Interestingly, brands in UK and North America are also keen to spend on in-house technology.

63% of technology budgets were spent in-house – compared to 44% last year – a figure driven by a desire from brands to excel in their customer experience, coupled with an element of mistrust in agencies.

Damian Ryan, Partner at Moore Stephens, said: “Investment in martech has reached a tipping point over the last twelve months. Established marketers in disrupted industries, such as insurance and financial services, realise they need to invest if they are to future-proof themselves, and view martech as a key area of investment. Just look at Nationwide Building Society’s recent announcement of £1 billion investment in tech. Staying relevant is key but taking on the new breed of competitors – such as Revolut – is creating a big rethink.

“All the while, agencies are struggling to stay relevant. Clearly marketers are seeking to build in-house strength and are set to spend more on martech to remain competitive. Our research finds that this budget is coming from media spend and will have a resounding impact on the value of media-centric agencies.”

Looking at the global market, those who said their budget will increase expect to see an average increase of 13%. Even more indicative of a fast-growing market is the fact that around one-in-five (18% in North America, 17% UK) expect increases of more than 25% in their martech budgets over the next year.

The research also looked at the specific technologies behind the market. On a global scale, perhaps unsurprisingly, email remains the most likely avenue for martech, used by 79% of marketers. This is closely followed by social media, with 77% currently using the technology with a further 18% expecting to use in the next 12 months.

The most planned for tactic in the year ahead, interestingly, is SEO – an established marketing discipline, but one which continues to change as algorithms develop. The biggest rise, year-on-year for the UK & North American market, was the use of martech for analytics, measurement and insights, selected by 75% – a 19% rise on a year ago.

The study showed that the most established tech currently in use is that of ‘internet of things’ (IoT) and connected devices. Second is voice which has seen rapid development over the past year, influencing the way searches are made online and driving progress in areas such as voice optimisation. A new wave of martech tools will likely emerge, and when the results are broken down by region, the UK is likely to be the most progressive in terms of voice search, with 36% stating they currently use a tool in this area, and a further 11% planning to do so in the next few months.

Amy Rodgers, Research Editor at WARC, said: “There has been no discernible sign that the rate of growth within the martech space is slackening. With data volumes continuously increasing, this research shows that data, analytics and automation are key focuses for martech investment globally as marketers look for help with metrics and measurement.

“Understanding of the technology available continues to be an issue for brands, however, and with many planning to move tech in-house over the next year, agencies will have to adapt to a changing, advisory role in the martech strategies of their clients.”

Click here to download a copy of the Martech: 2019 And Beyond report.

Complaints to the ICO ‘have doubled’ since GDPR came into force
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Complaints to the Information Commissioner’s Office (ICO) about potential data breaches have more than doubled since the General Data Protection Regulation (GDPR) came into effect, according to law firm EMW.

There were 6,281 complaints between May 25 2018, when GDPR came into force, and 3 July 2018, a 160% rise from just 2,417 complaints over the same period in 2017.

EMW says that businesses should be concerned about the significant increase in complaints and the size of potential fines that can be levied under the new GDPR.

Under the new regulations the cap on each fine will be raised to £16.5 million (or 4% of worldwide turnover of the entity being fined) – 33 times more than the current maximum £500,000 fine.

Increasing numbers of individuals are making complaints over potential data breaches, including some more disgruntled consumers making several, repeated complaints. Greater media publicity and Government advertising means there is a heightened awareness of individuals’ new data rights under GDPR. There is now a greater public focus on the accountability of businesses of all sizes in handling personal data.

EMW says individuals are most likely to make complaints when their sensitive personal and financial data is at risk. The financial services sector received over 10% of all complaints (660), with businesses in the education and health sectors receiving a combined 1,112 complaints.

James Geary, EMW Principal for Commercial Contracts, said: “A huge increase in complaints is very worrying for many businesses, considering the scale of the fines that can now be imposed. There are some disgruntled consumers prepared to use the full extent of GDPR that will create a significant workload for businesses.”

“We have seen many businesses are currently struggling to manage the burden created by the GDPR, whether or not an incident even needs to be reported. The reality of implementation may have taken many businesses by surprise. For example, emails represent one of the biggest challenges for GDPR compliance as failing to respond promptly to subject access requests or right to be forgotten requests could result in a fine. The more data a business has, the harder it is to respond quickly and in the correct compliant manner.”

Revealed: What school leavers want from a marketing career
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A-Level results are in – and research from CIM has found that the next generation of marketers prioritise job security over working for a cutting-edge brand, and retain a gloomy outlook about today’s job market

The survey of 500 young people aged 17-19, who have left school or college in the past six months, found that four in 10 (41%) are interested in a career in marketing.

Around a quarter (28%) felt the best way to embark on that career was by going to university, a fifth (21%) said a trainee marketing job, and 14% thought the best route was through a marketing qualification.

The research also found that young women are more likely (45%) to want to work in marketing than men (34%). Of those going to university, 38% said they would consider a job in marketing, compared to 44% of those not going to university.

The findings also suggest that the next generation of young people may have a different outlook to millennials who, according to previous research, put a job with meaning above one with high pay.

Rather than cutting-edge start-ups, or businesses focusing on delivering social good, respondents reported that their preferred employers are likely to be large, successful companies – job security and good pay are their top priorities.

The survey of future marketers found:

  • Established firms vs innovative start-ups: 64% would choose to work in a multinational (36%) or established British firm (28%). Only a small proportion would prefer to work in an innovative start-up (11%), a small business (12%), or a charity or social enterprise (6%).
  • High salary over social value: A high salary (44%) was viewed as more important than a career that helps people (33%).
    Successful business vs cutting edge: 60% said it was very or extremely important to work in a business that is successful, compared to 35% who said that it was important to work in a business at the ‘cutting edge’ of its industry, and the 28% who wanted to work for a prestigious brand.

Chris Daly, CEO of CIM said: “This research sends an important message to businesses and marketing departments looking to attract the next generation of talent. We shouldn’t be surprised, in the current economic climate, that young people are prioritising job security in big established firms.

“These young people have grown up during an extended economic downturn, so it may be that the stability and job security of large successful firms is what appeals to them most.”

When asked what they would be prepared to give up to secure their dream job, the benefit most respondents were prepared to sacrifice was a company car (48%). Meanwhile, only 39% said they would be prepared to work at the weekend, and only 29% would be willing to give up training.

The research also reveals that these next-gen marketers have a gloomy outlook about today’s job market.

Just half of school leavers (53%) feel optimistic about landing a job that they really want, while others believe difficulty achieving the right qualifications (34%), and difficulty developing the right skills (27%) will prevent them from finding their dream job. A third (29%) of school leavers feel pessimistic about their career prospects, with young people living in London (49%) revealed as the most pessimistic in the UK.

Students opting to go to University are more optimistic (60%) about their job options compared to those not going to University (47%). The research also shows a gender split, with women more pessimistic (32%) about their job prospects than men (21%).

“It’s worrying that so many young people feel pessimistic about the job market – and that in many cases, what they are most concerned about is having the right skills or qualifications to find a job they love,” Daly added.

“Across all professions, access to training should be a business requirement rather than a nice-to-have. Marketing is a good example of a sector that has clear training and progression opportunities, not only for those looking to enter the job market for the first time, but at every stage to help support learning and development.”