The Rise of Ad Blockers

Marketers were faced with a huge challenge when ad-blockers began gaining popularity. Some consider it as a huge obstacle that will only continue to grow, while others welcome the creative challenge. Ad-blockers were first adopted by the masses in 2014 with more than 15% of U.S internet users using an ad-blocking service. This number jumped 26% in 2016, and is expected to grow to a third of all internet users by 2017. Clearly a growing threat to their trade, digital marketers need to adapt and learn how to work aground this growing trend.

Image result for ad blocker logo

Marketers are mainly looking at this challenge from two separate points of view, one that is shared with eMarketer senior analyst Paul Verna who believes that “Ad blocking is a detriment to the entire advertising ecosystem”. On the other hand, Ben Kunz; vp of strategic planning at Mediassociates has even gone to say that “Ad blocking could be the best thing that has happened to the ad industry in years.” Regardless of how you look at it, ad-blockers aren’t going away and digital marketers will face a challenge, but how so?

To begin, it is important to note that ad blocking software’s often prevent the browser from requesting the ad, meaning if an ad is blocked it won’t cost the advertiser anything. However, as impressions become increasingly more difficult to generate, campaigns will take longer to complete and will inevitably inflate the price for most digital advertising.  In turn this will push marketers to create content that is more relevant, original and engaging for the consumers. Other new strategies include native advertising and the overall streamlining of the media.

What is native advertising? – https://sharethrough.com/nativeadvertising/

Ad blockers were nothing short of an eye opener for the digital marketing world, and have served as a catalyst for change. Marketers will be forced to adapt to the ever changing environment around them, changing their strategies, upping their creativity and exploring new techniques to attract consumers.

Ben Kunz on ad blockers – http://digiday.com/agencies/ad-blocking-may-save-digital-marketing/

Social Times article on the rise of ad-blocking – http://www.adweek.com/socialtimes/the-rise-of-ad-blocking-is-changing-digital-marketing-report/641940

Bizibl marketing on how ad-blocking affects marketers – http://bizibl.com/marketing/blog/how-does-ad-blocking-affect-marketers

 

 

The Future of Immersive Experience Marketing

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The rise of new technology has been an incredible catalyst in developing new marketing techniques in hope of capturing consumers’ attention and business. Living in a digital era, it is imperative that we, as marketers, implement the right strategies to stay one step ahead of the competition. The recent combination of social and digital medias paired with new technology has paved a new path for the marketing domain.

It is nothing new that story telling is one of the best ways of creating customer engagement; people are able to connect and relate to stories better than anything else. Immersive experience marketing has taken story telling even further by placing consumers inside and in control of the story. Now with new virtual reality technology, consumers are able to live whatever experience they are being sold before even making a purchase. It gives the chance for consumers to experiment and see for themselves which often results in an increase in sales. Such an experience would provide companies with greater exposure and overall brand awareness by building a connection between the end consumer and the brand.

Some industries have already begun adopting VR technology. Real estate and tourism have been transformed by this technology allowing consumers to experience the sights of an amazing vacation destination or their future home. Who knows how this incredibly technology will be used by future industries, but it’s fair to say that the combination of immersive experience marketing and virtual reality technology will be a duo to be reckoned with in the coming years.

two other articles on VR and immersive experience marketing

eMarketer – https://www.emarketer.com/Article/Virtual-Reality-Immersive-Medium-Marketers/1013526
tweakyourbiz – http://tweakyourbiz.com/technology/2016/11/09/why-immersive-experience-is-the-future-of-marketing/

 

 

The Future of the Restaurant Industry

Online reviews have become the norm in today’s society. Services such as Yelp have provided this service while promoting the idea of researching products before buying them.

The latest industry to adopt this model is the restaurant industry. With the holiday season quickly approaching, review-hungry Canadians are looking for restaurants to satisfy their appetites coupled with a dining experience leaving them hungry for more.

View the Vibe, founded by Nicki Laborie, is a platform where short video act as movie trailers for restaurants; to convey the restaurants atmosphere. These videos are distributed via social media, and give customers a little taste of what to expect.

Lately, the success of restaurants is no longer entirely dependent on its cuisine, rather as an entertaining, unique and enjoyable venue to experience a meal. It is these other attributes that are becoming more and more important for modern restaurants. For example, The Richtree Natural Market has elevated their dining experience with interactive tables, digital menus and activities while still serving up delicious food. As the industry grows, more and more restaurants will provide services like Richtree, eventually becoming the norm

Globe and Mail article: http://www.theglobeandmail.com/report-on-business/small-business/sb-marketing/advertising/how-restaurants-are-using-technology-to-transform-the-dining-experience/article15411158/

Rob Ford – Ruining the Image of Canada’s Business Capital

Rob Ford’s controversial refusal to step down as the Mayor of Toronto after he admitted to smoking crack has left many Torontonians confused and frustrated. Not only do the Mayor’s actions impact residents, but what impact do Ford’s actions have on local business?

Globe and Mail article:http://www.theglobeandmail.com/report-on-business/torontos-business-community-gives-ford-a-thumbs-down/article15465346/

According to Andrew Liang, director of Cormex’s MediaLAB project, the negative publicity concerning Ford will harm the city, as the city’s administration has been ridiculed around the world. Liang continues questioning “why anybody down the road would think favourable on this city as a place to invest it”.

Along with impacting business, it damages the city’s image abroad. Marketing experts claim that “it weakens the brand, it distorts it”; ruining the city’s reputation as a “culturally rich, financially vibrant world-class city”.

However, not all parties agree with Mr. Liang. Janet Ecker, president of the Toronto Financial Services Alliance explains that the “theatre of the absurd” politics does not impact investments if the fundamental business aspects of the city remain unchanged.

Even though there are many views, they all lead in the same direction, Mayor Ford must resign in order to salvage Toronto’s image as a city.

CBC video:http://www.cbc.ca/news/canada/mayor-rob-ford-s-crack-use-weakens-toronto-s-brand-1.2417003

Lululemon’s Marketing Disaster

Recently, Lululemon has been at the centre of many controversial claims. Earlier this month a number of claims were made regarding the company’s yoga pants, which were said to be too sheer and pilled. The company was forced to recall this controversial product. Lululemon then rebranded the pants as “Second Chance Pant” with the added promise of more coverage.

Huffington post article: http://www.huffingtonpost.com/2013/11/14/lululemon-alienating-customers_n_4275842.html?utm_hp_ref=canada-business&ir=Canada%20Business

In a recent interview after the product recall, Lululemon chairman and co-founder; Chip Wilson, blamed the pants’ problems on women’s bodies. He boldly claimed that the pants simply don’t work for some women’s bodies and simply rubs in the wrong places. Wilson later on apologized for his statements. His apology was labelled as “the worst ever”.

CBC Blog: http://www.cbc.ca/newsblogs/yourcommunity/2013/08/lululemon-under-fire-for-fat-shaming-marketing.html

In terms of a marketing standpoint, this is an absolute disaster. Alongside this public relations disaster is the very present “fat-shaming” in stores, Lululemon will have an ever more difficult time attracting, let alone retaining its consumer base.

ABC article and video: http://abcnews.go.com/GMA/video/lululemon-chairmen-chip-wilsons-apology-called-worst-20886522

In the short-term, Wilson’s attempted apology did nothing more than hurt the company’s image, leaving the company’s future in question.

WestJet To Test New Waters

The Atlantic skies will be more crowded than ever this summer as WestJet will be running test flights over the Atlantic to Europe. The company will begin to offer its transatlantic flight in June with seasonal non-stop flights from St. John’s to Dublin, Ireland and direct flights from Toronto to Dublin.

The Globe and Mail article: http://www.theglobeandmail.com/report-on-business/westjet-goes-trans-atlantic-with-new-dublin-flight/article15455464/

As WestJet prepares for the new flights, many questions concerning the company’s future have been asked. It has been reported that while management is looking at the potential for expansion in Europe, their main focuses are the domestic and regional services.

CBC article: http://www.cbc.ca/news/canada/calgary/westjet-to-go-transatlantic-with-flights-to-dublin-1.2427850

While this new service creates a huge opportunity for WestJet, it does much more than increase revenue. This new service will attempt to establish WestJet in Europe as well as increase the company’s brand recognition. It also gives the company the opportunity to learn about the European market and how they would have to operate.

Overall, this is a huge opportunity for the company and will be very beneficial if their first transatlantic offering is successful.

Possible Recall: Tesla Motor Inc

The outspoken co-founder of Tesla Motors Inc, Elon Musk said “there’s definitely not going to be a recall” of the company’s Model S despite three reported vehicle fires in the last six weeks.

Since the rumours of a possible recall began, Tesla’s share price has dramatically decreased a total of 22 percent since the company posted its third-quarter results nearly a week ago.

http://www.canadianbusiness.com/business-news/tesla-ceo-musk-says-model-s-wont-be-recalled-for-fire-risk/

There is an estimated fire in one out of every 1,300 gas-powered cars on U.S. roads, compared to the Model S which is closer to one in 8,000 stated Musk. Emphasizing none of the drivers were injured. Musk claims that the media’s reaction to the fires as unwarranted, and uneccessary.

tesla model s fire

http://www.bloomberg.com/news/2013-11-12/tesla-ceo-says-there-definitely-won-t-be-model-s-recall.html

Because there will be no recall, Tesla will be saving massive sums of money, but what does it mean to consumers? Due to the lack of a recall, potential customers may see Tesla as a company who does not value the safety of its patrons. Regardless, Tesla still views their vehicle as the best, and would recall the Model S if they thought the car had a safety problem, which clearly they do not.

 

 

Facebook’s Third Quarter

Facebook has reported a massive 60% increase in revenue in the third quarter, demonstrating that they have finally figured out how to generate large amounts of revenue from their mobile site. But, as investors celebrated, the companies recent success, the news that Facebook was losing its younger users, halted the celebration.

In one year, Facebook’s revenue surged to $1.8bn, a massive 66% increase. Most notably, nearly half of that revenue comes from mobile users and advertisements. Even though many digital companies have suffered due to shrinking profits from mobile advertisements, Facebook has been able to increase their profit margin by increasing the number of ads per mobile user. They have also made their ads more relevant to its users as they were criticized for showing irrelevant ads which led to low conversion rates. By having ads directed to each user and posting them directly in the news feed rather than the side margins, conversion rates have increased.

The Globe and Mail article: http://www.theglobeandmail.com/report-on-business/facebook-third-quarter-revenue-jumps-60-per-cent/article15164098/

Unfortunately for Facebook, its popularity among younger users in Canada and the U.S has decreased. This is a big blow to the company as each user in these countries earn roughly $4.20 compared to $0.74 in high growth countries such as China.

BBC article: http://www.bbc.co.uk/news/business-24751441

Facebook’s stock: https://www.google.ca/finance?q=fb&ei=2a1yUujIFIGqiAKo7wE

 

Negotiating Power; Japan Airlines vs Boeing

The Japanese aviation market just got a little bit more competitive this week. Traditionally, Boeing (BA) has dominated the Japanese skies; finally after decades of “sworn allegiance” to the U.S. aircraft manufacturing giant, Japan Airlines (JAL) have ordered 31 long-haul jets from the French company Airbus.

-Airbus Chief Executive, Fabrice Bergier, announcing the agreement.

Airbus Lands a Punch on Boeing With First Japan Deal- http://www.businessweek.com/articles/2013-10-07/airbus-lands-a-punch-on-boeing-with-first-japan-deal

After Boeing’s newest offering, the 787 Dreamliner, was sufficiently delayed due to safety and technical issues, JAL has decided to spend their money elsewhere. With the A350 being Boeing’s direct competitor, JAL opted for Airbus’ product. This is a huge agreement made between the two companies, financially, and is an expansion for Airbus who has entered a market controlled by Boeing. In terms of financials, the cost of the 31 planes is roughly $9.5 billion.

Airbus and Japan Airlines agree landmark $9.5bn deal – http://www.bbc.co.uk/news/business-24424873

Having switched allegiances, whatever bonuses JAL had in place with Boeing are certainly forgone. But for what they lost in terms of loyalty bonuses, they gained in negotiating and buying power.

How Japan Airlines Flexed Its Negotiating Muscles-http://www.businessweek.com/articles/2013-10-07/how-japan-air-lines-flexed-its-negotiating-muscles#r=hpt-lst

Twitter Goes Public; Releases IPO

Twitter has announced the release of its IPO in a tweet. The announcement made by the social media giant to go public has caused quite a stir in the investment world. After following in Facebook in the move to go public, many analysts are concerned it may follow its financial path’. Key concerns with the “micro blogging” platform have been raised since the release of company’s financials.

When Facebook entered the public market at over $38 per share, analysts grossly overestimated the company during the announcement if it’s IPO. With share prices dropping within days to $18, and taking over a year to surpass its original share price, investors and analysts are concerned Twitter’s shares may do the same.

Gold Up 1.5% As Stocks Globally Fall After Nikkei Crashes 7.3%

Since the birth of the company in 2006, Twitter has lost roughly $419 million, but has consistently generated increasing revenue totaling $317 million in 2012. Also, as Twitter plans to raise over $1billion at a share price of roughly $30, putting the company’s value at $15 billion.

http://www.cbc.ca/news/business/twitter-ipo-details-raise-questions-over-financials-bots-1.1912936

Even though the company has never posted any profit, I think that it will become profitable in the near future; it is generating increasing revenue due to their aggressive expansion strategy as well as a constantly growing user base. Twitter’s future is unknown, but for now, I think they will be successful in the long run.

http://www.cbc.ca/news/business/twitter-aims-to-raise-up-to-1b-us-in-ipo-1.1895100