YouTube Gets in on Shoppable Video

By Savannah McClelland

Some cutting edge marketers have been experimenting with the possibilities of what has been termed “shoppable video”—that is, videos with coded links that allow viewers to shop directly for an item that takes their fancy. YouTube, following the trend, has released a new “channel gadget” which will allow that functionality in YouTube videos.

The new function was announced in a blog post on Wednesday; the company explained, “This new channel gadget will enable shoppers to seamlessly move from browsing how-to videos and featured products to finding which retailers carry them, check availability, compare prices and make a purchase, all with fewer clicks than today.” The idea sounds a bit odd, but shoppable video campaigns have been successful for Neiman Marcus, Ssense, and other retailers looking for interesting methods of stimulating sales. Neiman Marcus’ campaign used a music video of models dancing, wearing pieces from Rachel Zoe’s first costume jewelry collection. Wherever a close-up shot was featured, white circles appeared which allowed viewers to pause the video and view the official product shot and price; it also included an outbound link to the product page, and a link to share the item on Facebook and Twitter.

The first client to get access to the new gadget is Unilever; its hair care brand, Tresemmé, has already built a unique YouTube channel featuring a variety of style gurus and personalities. Viewers will be able to click on the products being used in the videos and get more information, as well as the ability to buy products from various retailers. A Google spokesperson made sure to note that the function only appears on branded channel pages—not when the video is embedded.

Google further explained in the blog that the functionality will be made available to its consumer goods clients as a “premium offering,” and requested that interested advertisers seek out their Google reps to explore the option. Perhaps most interestingly, at this point Google is not taking a cut of sales made through the gadget, according to a spokesperson for the company.

Shoppable videos makes sense; as we’ve mentioned before, video content and video advertising is the new dimension for marketers all over the world. By creating a video experience where interested customers can not only learn more about products but, with just a few clicks, also purchase them, these advertisers are using the compelling medium for tangible results, not just brand recognition.

YouTube Paid Subscription Channels Launched

By Savannah McClelland

After multiple hints and several indications of interest, YouTube launched a paid subscription format last week, following in the footsteps of streaming services Hulu and Netflix. Unlike Hulu’s Hulu+ service, however, YouTube will not be serving ads on the subscription channel. The program has been in the works for some time, with YouTube teasing it in multiple announcements prior to the event.

Users have the option to subscribe to channels from a computer and then have access to those channels via smartphones, tablets, and TVs. YouTube says the ability to subscribe from mobile and other devices will follow. The subscriptions start at $0.99 per month, with a 14-day free trial.

Early content partners include UFC, Jim Henson Family TV (which is available in both an English and Spanish channel), National Geographic Kids, and Comedy.TV among others. YouTube says that over the coming weeks it will be rolling out paid channels as a “self-service feature for qualifying partners.” The pilot channels are a test, the company states—to determine both whether partners will see the value in opting in, and whether consumers will pay for premium content without ads.

Early commenters on the announcement have expressed doubt that YouTube will keep the paid subscription channels ad-free, given the company’s emphasis on advertising revenue. YouTube had previously stated that they were interested in the paid subscription option as an alternative for those channels that perform well but don’t see optimal profits as advertising partners. A representative for YouTube said in an interview prior to the launch, “We have long maintained that different content requires different types of payment models…The important thing is that, regardless of the model, our creators succeed on the platform. There are a lot of our content creators that think they would benefit from subscriptions, so we’re looking at that.”

Most are looking at the new revenue format with interest; some are already decrying the change. The change could be a major factor for brands to consider, in light of the fact that, while initially ad-free, YouTube will be allowing the subscription channels to determine for themselves later on if they want to include ads.

 

Smartphone Shoppers are an Important Category

By Savannah McClelland

In case your company has not seriously considered the implications of mobile advertising and presence, a recent study conducted by Google suggests that frequent “smartphone shoppers” statistically purchase significantly more than their counterparts; more to the point, that more individuals are using their smartphones as part of the buying experience than was previously thought.

Retailers everywhere are aware of the “showrooming” phenomenon—consumers using brick-and-mortar businesses as a way to test out products that they will later go on to buy online. However, the report from Google suggests that this is not the only way in which shoppers use their phones in-store. The report was based on consumer surveys as well as on behavioral analytics; it found that 79% of the smartphone user population were what was termed “smartphone shoppers,” and used their devices as virtual shopping assistants as often as weekly or even more frequently. Primarily, the assistance comes in the form of pre-purchase research, obtaining product and store-related information.

Even more interesting, Google found that one-in-three individuals said that they turn to their devices for information in stores rather than asking employees. Additionally, the smartphone shoppers preferred using a store’s mobile site rather than a proprietary app; to some degree this makes sense. Unless the shopper has already installed the app on his or her phone, it would seem like an undue commitment to many to download an app for what might be a one-time transaction. However, accessing a mobile site requires no commitment from the shopper.

Perhaps the most profound finding of the study was that where smartphone shoppers are using their tech to do aggressive price-checking, those that used their smartphone the most frequently actually purchased a larger volume of products—and had higher average basket sizes as a result. For example, frequent smartphone shoppers had a 50% larger basket than standard smartphone shoppers in the category of health and beauty purchases; in electronics, the size increase was a smaller—but still respectable—34% larger among frequent smartphone users.

The results of Google’s study highlight the necessity for retailers to improve their mobile presence; while many companies large and small have been taking an experimental or halfhearted approach to mobile advertising—and even to their mobile sites—studies like Google’s show that the consumer target is increasingly on their phones—and if you as a company are not, they may go just as readily to your competitor who is.

Google’s Project Glass is a Major Tech Advance

By Savannah McClelland

While wearable tech has existed for decades, one of the major drawbacks has always been that units are bulky and frequently inconvenient for the general public to use. The domain of tech-savvy engineering enthusiasts, such as MIT scholars, older-form wearable computers have long been a mark of distinction between the general public and a select group of individuals whose passion for computing meant that they would take whatever steps the felt necessary to stay connected. Google’s Project Glass, more recently called simply Google Glass, is a huge step forward from what other companies have worked on even in recent developments.

One of the most important capabilities of Glass is the fact that it can be used in a voice-activated control. By saying “Okay, Glass,” and proceeding to a command, the wearer can engage several different modes of operation. The product is also responsive to head movements and a touchpad on the side of Glass. The product is able to perform a variety of tasks from recording video, taking pictures, and managing communications and queries. The Heads Up Display (HUD) is designed such that the screen is unobtrusive; a thin, light layer over reality offset slightly so as to minimize distraction.

One of the built-in applications is location-based and timed alerts; using the product’s connectivity, Glass can provide alerts about flights, for example, or give users updates on breaking news. Since as the creators and developers point out, individuals would not want to read entire articles on Glass, news-based functionalities will show headlines, or in the case of some content, Glass can “read” the story to the wearer. Linked with a Gmail account, Glass will provide wearers with new e-mail notifications as well, allowing busy individuals to stay connected without having to take out a device and go through additional steps.

The picture-taking and video recording applications of Glass are relatively basic in function, but are a major advance for this type of technology. Individuals in the 21st century mindset of devices and smartphones are already used to recording a greater proportion of their lives and daily activities than previous generations; Glass makes this even easier by being capable of taking a picture or recording a video instantaneously of whatever the wearer is looking at. The media are able to be easily and very quickly uploaded to social sharing sites like G+; alternately the user can store the pictures and videos for later review.

There have been some concerns that Glass and products like it (which more companies are working to develop with the buzz surrounding Google’s project) will increase distraction and further limit people’s real-life interactions with the world around them. One of the developers of Glass, Thad Starner, has been using wearable computers since the 1990s, however; he says that he is in fact more engaged with the world around him. He is able to record lectures or other events, freeing his mind to pay better attention in the moment by the knowledge that he can review particulars later. The unobtrusive nature of Glass also means that notifications such as e-mails or rapid-fire communications (similar to instant messages or text messages) can be replied to just as quickly, requiring less distraction than peering down at a device screen.

As an added benefit, the same systems that allow for messaging, combined with the systems in the device that allow for individuals to take pictures and video, make it possible for users to start a Google+ Hangout with friends—and share experiences in real time, such as a party or concert or other event. The potential for novel media forms with Glass is immense; new programming based on point-of-view filming, for example, as well as archiving footage of events from multiple perspectives. For social aspects, Glass’ capabilities usher in a new era of interaction; friends can share events in real time that previously they would only be able to tell each other about after the fact.

The most impactful aspect of Glass’ capabilities is the connectivity. Attached to a cellphone or other device, Glass allows users to stay connected in an unobtrusive way, exploring the world around them and interacting constantly with the larger world of their social circle. Glass users can use hand-held typing devices, as well as voice commands, to send messages and brief e-mails, as well as using Glass to verify facts about the world around them. They can use the query function to get instant translations almost anywhere in the world—at least anywhere that has a language that is indexed by Google. The functionalities of the product make it possible for Glass users to do much more than the typical device user has traditionally done—and do it in a way that seamlessly blends the digital world with the real world.

Mother’s Day Spending Expected to Rise in New Categories

By Savannah McClelland

While a large percentage of individuals polled in a recent study by the National Retail Federation said that they were planning to go the traditional route for Mother’s Day—flowers—more gift givers are moving towards buying tech to show their appreciation. The study, conducted by BIGinsight, found that a little over 14% of respondents planned to purchase electronics; NRF calculates that consumers will spend more than $2.3 billion on electronics for mom, up from $1.6 billion last year.

The overall trend this year for Mother’s Day indicates an increase in spending across the board—the average approximately $170, up 11 percent from last year’s average. Total spending is expected to reach $20.7 billion.

More than half of the consumers in a similar PriceGrabber survey said that they plan to buy their gifts online, rather than shopping at department stores. The NRF study found slightly different results, with 34.4% of buyers saying they planned to shop at department stores, while 28.5% of the Americans surveyed planning to buy their gifts online—an increase of over 25% from last year, and the highest in the survey’s ten-year history. Those surveyed said overwhelmingly that free shipping was the most common attraction for online purchases, followed by price cuts.

Analysts have pointed to the NRF’s findings as indication that tech is becoming a more accessible and commonplace gift item—BIGinsight Consumer Insights Director, Pam Goodfellow, said in the NRF study, “Budgetary constraints will keep many families on the lookout for the perfect group gift, like a new tablet or smartphone, or even that cashmere sweater they know mom has had her eye on.” As consumer electronics become more and more prevalent, particularly mobile devices and tablets, marketers should definitely come to terms with the notion that mobile advertising will increase in importance. Having a mobile presence is becoming vital, particularly since another study has already demonstrated an increase in purchases made through mobile versus PC or brick-and-mortar stores.

Mother’s Day is also an excellent opportunity for marketing to mobile customers in and of itself; multiple companies are capitalizing on the growth of the mobile channel to offer coupons and other incentives via branded apps and mobile-based social media.

Overall, these studies indicate two things: Mothers should be very pleased this Mother’s Day, and mobile is the biggest opportunity available to marketers everywhere right now.

 

Mobile Traffic to Local Sites Growing Faster Than Traditional PC Traffic

By Savannah McClelland

In the new Local Mobile Search report released by The Local Search Association recently, the trade organization found that mobile is gaining—particularly in local search—where PC traffic to search is flat. The Association used data from comScore to reach their conclusions, basing their report on the fourth quarter of 2012.

The argument made by the data is that PC traffic has plateaued, as indicated by the fact that in Q4 of 2011 and Q4 of 2012, there was only an increase of 1 million PC users accessing the internet—taken from a base figure of 220 million the previous year, the increase is less than 1%. During the same time period, however, mobile grew at an almost phenomenal rate—particularly for certain categories. On average, as of Q4, mobile traffic stood at 15 percent, more than doubling year-over-year.

In the case of local sites, the growth pattern of mobile is even greater—the average percentage of mobile traffic to local sites grew to 27% from the previous year, an increase of approximately 21%. Some sites have even noticed greater averages than those in the report; for example Zillow, a real estate site, reported in January that more than half of its visits came from mobile. Yelp also recently announced that 55% of its searches came from mobile, with 45% coming from apps.

One of the key differences highlighted by the report was that in calculating mobile traffic, a further division can be seen between access by apps and access through mobile browsers. For the most part, apps are used more often in the mobile space, according to the Local Search Association report; however, in some categories mobile browsers are more commonly used. The report also discussed trends in the use of mobile internet access for purchasing, broken down by app and browser. In the case of travel, for example, those that used mobile devices to purchase went through a particular app 85% of the time, rather than a mobile browser. On the other hand, those that purchased in the automotive category almost never used apps for the purpose, preferring the browser.

The report is yet more evidence that mobile is a channel that marketers and brands simply can’t ignore. Because the data are from the end of 2012, mobile traffic—including purchasing—is probably an even greater percentage now than the report shows. Considering the details of the report, locally-based businesses would benefit the most from the mobile space, though it’s definitely a good idea for all businesses to work on their mobile offerings.

Cybersecurity a Growing Concern for Brands, the Government

By Savannah McClelland

The 2013 buzz word of all buzz words may just be Cybersecurity. Recent Twitter hacks of the Associated Press and E! Online, along with an attack that breached the United States Department of Labor, among other news items, have focused attention on the ever-evolving issue.

One of the leading concerns presently is the Syrian Electronic Army, the group responsible for hacking multiple Twitter accounts including those for the AP, E!, CBS,  and the official World Cup account. The Syrian Electronic Army is a group of internet-savvy supporters of the al-Assad regime. Their goal has been to deliver an onslaught of pro-government propaganda all over the Internet; the E! Twitter hack, for example, resulted in a post that said “Angelina Jolie admits…that Jordan is to blame for the Syrian refugees’ atrocious conditions.” The AP tweet claimed that the White House had been attacked, with President Barack Obama injured. The AP worked quickly to attempt to neutralize the tweet, but the damage was done: stock prices for Dow Jones Industrial dropped drastically.

In addition to the disruptive Syrian influence, the Chinese government has also begun rolling out larger-scale cyberattacks; Mandiant, a respected security firm, outed a shadowy group known as APT1 as the agency responsible for some of the most effective cyberattacks against the United States in recent history. Mandiant presented its analysis after identifying and rooting out the system used to hack the Times.

With these attacks and many more—including multiple newsworthy Distributed Denial of Service attacks on large corporate interests—brands and government alike are looking for ways to enhance their online security. The high-profile Twitter attacks have resulted in calls for two-step verification, a feature that many other online platforms have already rolled out. Facebook is introducing another optional security measure for accounts: Trusted Contacts, a system that will allow users to choose three to five of their most trusted friends to receive codes if they are unable to access their accounts. The user would then need to retrieve the codes from each friend, with a minimum of three codes needed to unlock the account.

Security companies have suggested to brands that in the meantime, best practices should always be followed when using social media: change passwords frequently, choose passwords that are as secure as possible (using a combination of letters, numbers, and where permitted, symbols); don’t choose words that can be looked up in a dictionary as the basis of a password, and don’t release the password to any third parties.

Cybersecurity is an important issue for brands that use social media and other outlets to market themselves to consumers; with the growing population of the world with the ability to access the internet, the need to maintain reputation, to keep the branded message clear and unobstructed, can be attacked at any moment. Until greater measures are available, take the precautions that make sense.

 

Tumblr Unveils Mobile Ads

By Savannah McClelland

Last month we shared Tumblr’s announcement that they would be incorporating ads into the Tumblr mobile app, and then Tumblr unveiled the result of their work. The Tumblr mobile ads are native, as opposed to banner ads—meaning that they are little more than basic posts marked with an animated dollar sign, which readers can “like” and “reblog.” According to a statement from Tumblr, users will not receive more than four sponsored posts per day.

The move comes as part of Tumblr’s overall strategy to become profitable this year—the mobile advertising market is forecast to increase 65% to $2.1 billion in the United States this year. Importantly for the company, Tumblr’s mobile viewership is growing even more quickly. David Karp, Tumblr CEO said in an interview back in February that he expected mobile traffic to overtake PC traffic by early 2014.

Six partners are included in the mobile ad launch, including ABC Entertainment, GE, Pepsi and Warner Bros. GE will be featuring cinemagraphs of their jet engines and locomotives, while Warner Bros. plans to use the new venue to promote their upcoming summer films The Great Gatsby and The Hangover Part III.

In the February interview, Karp said that he did not think that Tumblr would have a harder time monetizing its mobile traffic. Karp explained, “On Tumblr there are no special brand pages, there are no Sponsored Stories. There are blogs and there are posts. So as long as there are those elements and our mobile apps are getting better and better at displaying those atomic elements… We should be able to inject advertisements there in a way that’s really not disruptive and not interruptive.”

With the growing focus on mobile advertising, this move will likely help Tumblr to achieve profitability this year, a goal that the company has repeatedly focused on in press events and announcements. The six-year-old company is hungry to prove that it is a viable business, and this among the other changes that have come in the last three months demonstrate just that.

With Mother’s Day Coming, Avoid Scam E-mails

While scam e-mails happen year-round, there are some particular tricks and schemes that seem to only come up around holidays focused on gift-giving. Mother’s Day, just a week and a half away—is a time of the year when scammers step up their game for easy pickings.

Bitdefender, an antivirus company, tracked a particular e-mail scam campaign that seems to target men specifically. The subject line of the e-mail helpfully reminds the sons and husbands of mothers to honor the day with flowers, and includes links that claim to be for discount florists. When the men click on the links, however, they are taken to a site offering a fabulous array of male-oriented gifts ranging from an Aston Martin to Pat Lafrieda burgers.

However, the scam doesn’t stop there. If the unfortunate man is lured into purchasing one of the items, he will soon discover that not only will he not be receiving his gourmet burgers; he will shortly have difficulty purchasing anything. The whole website exists to mine the credit card and bank account information of those who have been fooled into “buying.”

This type of scam falls under the category of “phishing,” and it’s certainly one of the more interesting and thought-out methods in a category that usually sticks with year-round scams such as “your account has been compromised,” (which is quite ironic, considering), or so-called Nigerian Prince routines.

Of course, it’s not just the men who are targeted; other scams direct individuals to fake jewelry stores and fake online retailers, promising a discount and providing nothing more than a great deal of headache for the purchaser—who must attempt to get back the money stolen from them.

There are even scams that are set up to attack the unwary mothers out there. Another scam Bitdefender has seen involves phony e-card websites. The e-card was at one point an extremely popular way to send someone a cute, animated reminder that you were thinking of them; now, however, the majority of individuals don’t use the services anymore—so if you receive an e-card in general, it might be a good idea to approach with caution.

Some basic guidelines to avoiding these scams are to pay attention to what it is you’re opening. If you’re hearing about an online retailer for the first time by way of an e-mail, it’s probably a better idea to go with a retailer you recognize. At the very least, it is probably a good idea to search for the retailer and see if anyone has reviewed them—or outed them as a scam. If you receive a notification about an e-card, look at the subject line and sender, as well as looking at the body of the e-mail before clicking any links. E-card sites that are above-board will mention who’s sending you the card.

Most denizens of the Internet are familiar with the scam tactics that have existed for years. Ultimately, the best advice that can be given on the subject of avoiding scams is to ask yourself if what you’re being offered makes sense. And of course, the fail-safe in any occasion like this is to check when something seems even the slightest bit off.

Snickers’ Wining Typo Strategy

By Savannah McClelland

While most companies can agree with the wisdom of running an SEO campaign on keywords that pertain to brand or company, Snickers recently went for a strategy that was risky—but which apparently rewarded the offbeat company well. Snickers’ recent SEO campaign targeted users who misspelled words in Google searches.

The idea was born when Snickers realized that office-bound workers would likely not be able to reach the viral and social content they were also marketing with; most offices tend to block those types of sites in the name of productivity. The strategy became then to target those users through Google instead; the company bought approximately 25,000 misspelled search terms. The company worked with Google to sort through the most common misspellings of the most commonly searched words. When one of the misspellings was searched for, a paid ad would direct the user to youcantspellwhenyourehungry.com. The site features a Snickers bar with various misspellings of the company’s name flashing every few seconds, along with a branded message. It also invites page visitors to access the brand’s Facebook page “If your not shaking to mutch.”

According to Snickers and their UK agency AMV BBDO, they have reached somewhere in the neighborhood of 500,000 people in their target demographic with the clever search tactic. The campaign also makes sense in the larger context of the brand’s ongoing “You’re not you when you’re hungry” advertising message. The brilliant aspect of the strategy is that it goes about targeting not just people searching for the brand itself, but also a particular subset of people who might be interested in the brand without thinking of it. Overall, the campaign seems to be a successful one for the candy company, and is further evidence that particularly when it comes to marketing through the Web, ideas that can sound silly or risky can pay off in a big way for those brands that are willing to take the chance.