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50% of Mobile Users Would Prefer 'Skippable Ads'; The Five Segments of the Millennials

ExchangeWire Research’s weekly roundup brings you up-to-date research findings from around the world, with additional insight provided by Rebecca Muir, head of research and analysis, ExchangeWire. In this week’s edition: Mixed feelings towards mobile advertising; A heterogenous look at Millennials; Cross-selling in the beauty segment; and UK marketers increasingly aware of importance of martech expertise.

50% of  mobile users would prefer ‘skippable ads’ 

Mobile devices have become the main devices in users’ daily lives. The Numbate/Lesmobilizers study takes a look at this truism and focuses on users’ attitudes towards mobile advertising.

While 60% of the study’s participants said they were often, or fairly often, exposed to mobile ads, the overall feeling towards mobile advertising is mixed: 62% understand that mobile advertising is “necessary to sites’ good functioning”, 75% believe that in-app and mobile advertising is too intense.

No surprise, then, that 56% of users prefer discreet formats to more obvious advertising: banners received an average of 6 out of 10 points in the study, with native just behind on 5.6 points.

Mobile ad blockers are only used by 4% of Numbate’s study participants. However, the number of users considering the use of ad blockers is rising, with one out of five users intending to install ad blockers within the next six months. Of these users, most are aware of the relationship between free internet offers and ads: 82% are willing to download ad blockers which only apply to particular ads.

From the users’ perspective, the way forward is ‘skippable ads’: Almost 50% think that these ads could be the compromise between users and advertisers. However, 58% of mobile users prefer advertising messages that contain practical information, 46% would tolerate ads if they contained offers and discounts.

The five segments of the Millennials

In a survey of more than 5,000 consumers, YuMe delves into the influencing factors on purchase behaviour, media viewing habits, devices preferences and the impact on consumer marketing. The conclusion for marketers: Millennials are a more heterogenous group than previously thought.

Based on the study findings, YuMe has categorised Millennials into five separate segments: Mobile Mavens (19%), Tech-Savvy Savants (19%), Cross-Training Cord Cutters (22%), Thrifty Traditionalists (22%), and the Casually Connected (18%).

Mobile Mavens are predominantly female, and one of the younger segments, often still full-time students, as well as ambitious career starters who are interested in luxury brands for health and beauty. Mobile Mavens are most likely to use modern devices and communication networks, and use social sites like Pinterest and Snapchat.

Tech-Savvy Savants, on the other hand, are older than most of the segments studied. Predominantly male and often working in management careers, Tech-Savvy Savants are avid TV binge-watchers who display strong brand loyalty, yet display a strong interest in products that are new – 64% would like to own the latest technology. This segment also loves video games. Tech-Savvy Savants take their product knowledge from consumer sites like eBay and RetailMeNot and consider video ads as sources of brand information, with nearly a third saying they actually enjoy commercials.

Cross-training Cord Cutters are a more diverse segment, less than two-thirds Caucasian, and predominantly male (60%). Working out is part of their lifestyle and social media a source for fashion trends – both important considerations for a segment that likes to be trendy. This desire extends also to their purchase behaviour, spending more on home entertainment than other segments and responding strongly to commercials with celebrities or appeals to their competitive spirit.

The oldest segment are the Thrifty Traditionalists, made up by more women than men. The least diverse segment, Thrifty Traditionalists don’t watch much TV and do not use social media as much as other segments. Shopping is not considered a pleasure activity but is usually for the basics. Thought-provoking or informative marketing is most likely to be noticed by Thrifty Traditionalists.

The Casually Connected have the lowest annual income of all the segments and are often full or part-time students, as well as unemployed or living with their parents. Social settings make 56% of The Casually Connected uncomfortable, yet Facebook and Pinterest are favourite online sites for 48% of them. The Casually Connected are characterised by an isolated lifestyle, buying online from businesses like Amazon. Brand loyalty or trends are not important for The Casually Connected, as this segment is individualistic and impulsive when it comes to buying. Seventy percent of The Casually Connected say they rarely pay attention to video ads, with a similar number (68%) feeling annoyed by irrelevant advertising. Technology is primarily used for entertainment purposes.

“Our goal was to evaluate the Millennial audience to create a more comprehensive picture of the audience segment that makes up this highly sought-after generation”, says Paul Neto, senior research director at YuMe. “Using the profiles we’ve established for each segment, advertisers can plan future projects with clarity and precision, ensuring the tone and content of their ads, media and device path, as well as brand and product are aligned with the audience.”

Cross-selling as marketing tactic

Between 1 March-30 April, 2016, HookLogic analysed 14 million online transactions resulting in almost USD$1.5bn (£1.12bn) sales from across the HookLogic Exchange in both the United States and the United Kingdom, focusing on the underlying motivations that are driving the purchase behaviour of Beauty Care shoppers.

HookLogicThe study reveals that two-thirds of beauty purchases are bought alongside items from other categories, making cross-selling an important tactical consideration for marketers.

Delving deeper, HookLogic finds that 27% of online beauty carts contain just one item. As a result, competitors will find it harder to have their products considered by shoppers; 33% of online shopping carts containing at least one beauty item consist of only beauty items, the study finds.

Brand loyalty is the biggest motivator of beauty purchases, HookLogic finds, and consumers are most likely to make a repeat purchase or buy several items of the same product – giving marketers the opportunity to drive for sales.

64% of UK marketers believe understanding martech is critically important to their career

Marketers have become increasingly aware of the importance of martech expertise. Almost two-thirds (64%) of UK marketers believe that their career success depends on understanding marketing technologies, with creativity considered the most important when it comes to career success (68%). These are the findings of programmatic marketing and analytics platform DataXu from a survey of over 530 senior marketers at major US, UK, and European brands.

The report reveals that 63% of UK marketers currently have a chief marketing technologist (CMT), or senior marketer, focusing on technology, analytics, and data, in their organisation. The figure is even higher in Continental Europe (Germany, France, Italy, Spain) where 80% of companies have a dedicated marketing technologist. In the US, only 53% of respondents said their organisation has a CMT role. Of those UK companies yet without a dedicated CMT, 21% state their company intends to create this position over the next year.

“Unlike a traditional CMO role, the CMT role bridges the knowledge gap between marketing and technology by offering expertise in both disciplines”, explains Chris Le May, DataXu SVP and managing director of Europe & emerging markets. “It also brings, at board level, a new perspective from someone who can advise and lead on areas such as procurement, management of marketing technologies, and the team structure required below them.”

However, DataXu’s study also finds that the proliferation of marketing technologies is not without its difficulties; 24% of UK marketers believe their martech team is too small and deals with multiple tech vendors, citing this as the largest threat to their marketing team’s success. According to the study, the biggest challenge for UK marketers is creating the most efficient marketing mix across channels – a problem likely to increase with new marketing channels continuously emerging; 19% of marketers struggle with identifying the right attribution model, and 18% find it challenging to quantify the effect of marketing efforts on sales.

Nevertheless, 51% of marketers are planning to manage more marketing technologies in-house, citing cost-effectiveness (33%) and greater levels of transparency (22%) as the main benefits of in-house martech management.