Added value marketing: 3 easy ways to incentivize your customers

A win-win for both a brand and its customers, added value marketing offers the consumer many more incentives and rewards than standard marketing does, while simultaneously costing the brand very little compared to other advertising methods.

value added marketingAdded value marketing—commonly referred to as value-added marketing—is a strategic method of advertising used for building brand affinity. It creates a connection with the customer that increases their receptiveness to a brand’s message. However, while many marketing materials might fit the mold of added value, not all will offer the same impact. Modern CPG marketing trends show that any approach to advertising must be more than just a sales pitch. Added value marketing needs to offer information about the company, incentivize consumers to share the brand’s message, and, perhaps most importantly, explain how the product solves a consumer’s problem.  

The concept of added value is a marketing strategy based on perception; the value usually can’t be measured in dollars and cents. Instead, it’s measured in how much the customer values what they’re being offered. As such, added value marketing can be a bit difficult to manage and assess effectively. However, when successful, it can offer a major boost to a brand’s reputation—and its bottom line.

Provide Digital Collateral Materials

Collateral materials refer to any marketing materials that accompany a product; they support a sale by clearly introducing a company and a product to a consumer considering a purchase. This is a very broad concept that can be applied to a wide range of platforms.

Traditionally, these marketing materials have accompanied more expensive items. However, digital channels have made this a more accessible approach to added value marketing for products at every price point.

Marketing materials can now be used to add value to a purchase and reach consumers while they’re in the shopping aisle via:

  • In-store digital displays: In-store digital displays can be used to showcase the history of a company or information about a new product. A case study for this approach comes from a popular makeup brand. The brand offered in-store digital displays featuring several social media influencers demonstrating the use of new products. The company was able to leverage the power of social media to add value, aka a tutorial, to the makeup purchase experience.
  • Mobile demonstrations: A well-known soap company chose to offer a mobile video experience so that potential buyers could compare for themselves the results of using the company’s products versus their competitors’. The quick video clips were offered on a mobile app as well as via the brand’s social media pages. They were inexpensive to make and resulted in an increased consumer interest in the brand.  
  • Downloadable eBooks: eBooks, online tutorials, and downloadable PDF guides can provide information and instructions for a product’s use while minimizing the cost of supplying these materials to the consumer. If these marketing materials are available to the consumer before purchase, they can help to increase sales, essentially advocating for a sale of the product on behalf of the company.

Digital collateral allows a brand to connect with consumers in the purchase moment. This creates a more personal experience, one that encourages the consumer to spread a brand’s message. It’s a standard customer relationship building strategy that establishes the company as a subject matter expert.

Incentivize Brand Ambassadorship

Brand ambassadors are quite possibly a brand’s most valuable customers. Why? Other consumers trust them. In one study, it was noted that 84% of consumers trust online customer reviews as much as they trust the recommendations of friends. The reason for this is that they consider other, anonymous consumers to be unbiased.

Cultivating brand ambassador relationships is something which any brand can take part in and it doesn’t require a large investment—or even the endorsement of a well-known person. Here are a few ways to create and encourage brand ambassadors:

  • Sweeps for shares: Social media shares are a highly effective way to earn attention for a product or brand. However, getting consumers to share social media ads can be a challenge if something isn’t offered in return. Many companies use online raffles, or sweeps,›› that offer consumers the digital version of a raffle ticket in exchange for sharing a post. This is an easily scalable added value technique that often only requires giving away a single free sample product to the winner of the raffle.
  • Referral bonuses: When a customer refers someone to a product, they should be recognized. Shopkick, a shopping app which rewards points to consumers for interacting with brands, leverages this tactic by offering additional points to its users each time they refer a new active user to the app. This approach is highly successful at creating consistent user base growth.  
  • Online parties and events: One way to gain brand ambassadors and social media shares is to have a scheduled online event where users can ask questions in real time, get to know other users, and gain insider information on a company. It works to humanize a brand and encourages engagement and excitement for a product.

Incentivizing individuals to spread a brand’s message does not have to be an expensive approach to added value marketing. Again, this incentive is all about perception. If the consumer perceives value in spending their time sharing a brand, they’ll participate. They’re more likely to do this when they view a brand not just as a company, but as a company that cares.

Helping Rather Than Selling In Added Value Marketing

Added value marketing focuses not on selling to the consumer but, instead, on helping them. Brands should consider the desired uses of a product and why a consumer would turn to their brand specifically. Offering the answer to a consumer’s problem is a way to build brand affinity. That affinity is something the consumer views as added value; when they purchase a product, they’re not just getting a product, but also the expertise of the company behind that product.

Brands can incentivize consumers via added value marketing in a way that provides an emotional connection rather than an immediate monetary return. It’s about consumers trusting a brand. That trust comes from giving them important information about a company and its products, incentivizing consumers to share the brand’s message, and offering marketing that helps them, rather than simply sells to them.

Shopkick helps our partners provide superior value through its shopping app that gives users kicks for engaging with brands. For more information on how our app incentivizes customers, contact our team today.

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How to create brand awareness—and excitement—for new products

A new product launch is an exciting, but also nerve-inducing, event for any CPG brand. You’ve done market research and held focus groups—and you believe that you have a product that will resonate with consumers. However, even big data can’t guarantee a successful launch. For that, you need a powerful marketing campaign that will excite and engage your target audience.

creating brand awareness for a new product launchKnowing how to generate brand awareness for new products requires, above all, knowing your market. There are virtually millions of CPG products on the shelves for consumers to choose from; a successful launch is increasingly dependent on taking a digital approach in order to break through the noise of a crowded marketplace. And that means leveraging mobile platforms and social media to create buzz.

Many brands have been able to proactively gain attention for new products on a national or even global level, and thereby achieve a successful debut. Let’s explore how you can adapt one such brand’s tested strategies to ensure your own product launch sees similar results.

How to Create Brand Awareness and Buzz for New Products and Marketplaces

Whether you’re introducing a new product into an existing market or pushing an established product into an untapped market, the one thing that product needs is buzz. While the word is short, the path to earning it is not. In fact, it’s estimated that only 15% of new products succeed in the CPG industry. Brands that have faced this challenge head-on and launched a breakthrough product typically have this one thing in common: they got consumers engaged.

Let’s consider the case of Milk-Bone’s Brushing Chews. The company identified a common problem, canine dental health, and reached out to partners who could help them solve it. Prior to the product’s launch, the brand worked with several retailers to customize their message based on the demographics of the retailers’ audiences. They also spearheaded a social media campaign focused on pet dental health with the help of veterinary professionals to gain credibility and help to drive interest. In one year, sales for the product topped $50 million.

The brand successfully created brand awareness for a new product launch by:

  • Solving a universal problem: Pet parents rarely brush their pet’s teeth as it’s a challenge both for the owner and the pet. Milk-Bone saw this dilemma and capitalized on it to launch a new product that turned a task into a reward.
  • Building a social media campaign: The company used a series of online videos featuring their mascots Ted and Rudy, a man and his beloved dog. The videos featured an engaging duo demonstrating the product; viewers were excited to share and comment on it.
  • Creating mutually beneficial partnerships: Veterinarians were the first to raise concerns about the lack of dental care for pets, so Milk-Bone decided to work with them to get the word out about their toothbrush-esque product. Milk-Bone was able to get the support of these industry leaders while veterinarians received a solution to a problem they saw every day.

Through these marketing efforts, Milk-Bone was able to roll out a new CPG product launch that was one of the most successful in the sector in 2014. They gained popularity and sales for their product by focusing on the common needs of their target audience.

Adapting Milk-Bone’s Strategy to Create a Successful Product Launch

It should be noted that Milk-Bone was up against some tough competition. Their competitors’ products, however, tended to be marketed as medicinal, rather than as treats. Milk-Bone created a niche presence for themselves and leveraged partnerships with trusted industry professionals to spread a powerful message.

Regardless of the product your company is selling, you can adapt some of their strategies to improve your own launch and build brand awareness:

  • Bend categories: Milk-Bone is a company that primarily provides dog treats. However, with the rollout of their brushing chews, they moved into the health category. As they were the most dog-friendly option in the health category, they became a go-to option for many pet owners. Launching a product is often easier when you’re the stand out among a fixed group of competitors. Find your product’s unique selling point and use it to compete in a less aggressive category.
  • Leverage social media: Milk-Bone rolled out their new product on several platforms, including social media. Their online videos, in particular, resonated with pet owners. Video advertising can generate a high ROI and can be a great tool for building buzz and engagement among consumers before your product even hits the retail shelves.
  • Create partnerships: You don’t necessarily have to work with industry experts to carve out a place for yourself in a crowded market, you just need to find a partner that consumers already trust. Shopping apps are a great tool for CPG companies as they help spread your brand’s message to a wider and active audience and help you build the buzz you need for a successful product launch. They allow you to travel with the consumer through the ever-increasing shopping aisle, providing more powerful opportunities for in-the-moment messaging.

By taking a unique slant with your product and marketing it through digital avenues, you can gain more attention and brand awareness for your next product launch. Partnerships, like the ones you build with shopping rewards apps, can also help get the word out about your product to gain consumer’s interest. These apps can give you access to a new audience of consumers who are already engaged—and ready to help create buzz for your next product.

Shopkick is a popular shopping reward apps with partners and consumers alike. Our partners have found success in reaching new audiences and launching new products. To learn more, contact our team today.

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Fast food advertising budgets: How your QSR brand can compete for less

Fast food is one of the most highly advertised consumer-facing markets in the world. Recent figures indicate that $4.6 billion is spent on fast food advertising annually in the US alone. The reasons behind why this segment advertises so heavily are high competition coupled with a limited window of opportunity. Consumers make fast food decisions in the moments right before they buy, which means that all the advertising in the world isn’t going to reach them if it’s done at the wrong time. A fast food advertising budget, then, can be stretched when you focus not on the quantity of your advertisements, but on the timing instead.

advertising budget fast food restaurantWhile the high degree of competition is a challenge for quick service restaurants (QSRs), they also have a unique opportunity: they can leverage mobile technology to easily target their consumers when they’re most likely to stop at a fast food franchise. This is something accomplished through mobile moments, as smartphones that travel with consumers are the best way to reach out to them while they are on-the-go. Instead of sinking a high percentage of your precious advertising dollars into a widespread, scattershot campaign, you can instead market smarter by traveling with the consumer.

Use Your Fast Food Advertising Budget to Focus on Mobile

App-based advertising is capable of reaching consumers as they’re near a QSR location or looking for a place to eat. This can be a better alternative to social media for many fast food companies as this form of advertising reaches consumers when they’re in a buying state of mind.

Domino’s is a brand that has fully embraced app-based advertising. In 2010, they became early adopters of the technology and began focusing heavily on mobile advertising via apps. By 2015, the brand saw a 19% increase in sales and reported more than half of their orders were made via mobile devices. For 25 consecutive quarters, the brand saw increases in sales. Domino’s did this by essentially going all in on digital with their fast food advertising budget. Specifically, the company:

  • Offered mobile orders, payments, and tracking: Consumers can use the mobile device for all stages of the ordering process, from beginning to end. There’s even an optional tracker that allows consumers to see when they can expect their food to be delivered.
  • Integrated its rewards system: Domino’s has fully integrated their QSR rewards program into their app, meaning users are automatically credited with points.
  • Personalized the experience: On the tracker, consumers can see the name of the person making their food, what time the driver left the store, and can even leave a message for the location.
  • Target upsell opportunities: When using the Domino’s app, several options will be suggested to the consumer prior to check-out based on their order history, such as desserts, drinks, or sides.

Domino’s essentially took a mobile-first approach to their advertising budget. It was a risky move, but it worked to their benefit. Of course, it was costly upfront, as developing a proprietary app for a QSR mobile advertising strategy can be quite expensive. For brands that are looking for a way to integrate mobile app marketing while limiting their initial costs, an alternative can be found in partnering with a third-party shopping app.

Budget Saving Advertising Alternatives to In-House App Development

When your fast food advertising budget is limited, an ideal way to take a mobile-first approach is to work with a third-party app that is well established. Shopping apps, specifically, are good tools to make the most of your advertising dollars while minimizing the direct cost to your budget.

When considering a third-party app partnership, look for apps that offer:

  • A high number of active users: One of the benefits of using a third-party app is that you don’t have to worry about driving adoption. The app should come with a built-in audience of active and engaged users within your target audience.
  • Proximity marketing: Proximity marketing allows you to communicate with a mobile user when they’re close to one of your locations. This strategy can determine signals of purchase intent and use them effectively, increasing the chance of reaching that consumer as they’re about to make a dining decision.
  • A rewards-based system: The best shopping apps won’t be dependent on offering deals or coupons to get consumers to buy your product. Instead, they’ll offer rewards, such as points for making a purchase. This incentivizes buyers without forcing you to discount your items.

Partnering with an established shopping app can allow you to take advantage of all of the benefits of mobile advertising without the high expense of developing an app in-house. This can be a good way to stretch your fast food advertising budget while increasing your ROI.

A high-performing mobile campaign can be a powerful converter for QSRs, especially when you consider how important it is to be able to travel with your consumers. Consumers make fast food decisions quickly, which means you must also be mobile in order to reach them at that pivotal moment.

Shopkick helps our partners leverage mobile technology to reach an engaged target audience. If you’re interested in learning how far your advertising budget can go when partnering with a third-party app, contact our team today to learn more.

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Modern customer relationship building strategies for the digital shopper

Customer relationship building strategies are one of the cornerstones of marketing to help increase brand awareness, build market share and growth, and improve overall product perception. Many companies are seeking ways to leverage expansions in artificial intelligence and utilize smart technologies to create meaningful conversations with customers. Most modern customer relationship building relies on technology in one form or another, so knowing how to capitalize on will be an integral aspect of any given consumer-focused strategy.

strategies for building customer relationships

It may seem contradictory to use technology to build customer relationships since technology often lacks a human touch, but tech is the most efficient way to manage thousands of customer relationships or more. The key is to temper technology-based responses with human ones, so customers still feel as though they are being heard on an individual level. By implementing new technology—beacons, bots, and mobile shopping apps—you can build a relationship with your customers that will keep them loyal to your brand without placing an undue burden on your resources or harming your bottom line.

Customer Relationship Building Strategies With a Tech Twist

Dollar Shave Club is a great example of a company that managed to segue personal customer relationships into a billion-dollar success story. The company made a name for itself by selling memberships to an automatic razor delivery service, but it built a brand off of its outstanding customer relationships by developing experiences for consumers that still include:

  • Exclusivity: Members of Dollar Shave Club are given access to an insider newsletter and receive regular, personalized messages from the brand. Club members are also entered into a referral program that rewards them for inviting others to join the service.
  • Engagement on social media: Users of Dollar Shave Club can post images of their deliveries to the company’s Facebook page. The brand then selects their favorite posts, and the winners receive a free T-shirt. Providing a creative and engaging customer rewards program—whether for points, merchandise, or cash back—can be a powerful relationship building tool.
  • Rapid responses: The average response time to an email sent to the team at Dollar Shave Club is less than a day. Questions or complaints posted to social media sites are answered within a few hours. Rapid responses build trust between consumers and the brand and make their loyal subscribers feel their concerns are being considered and addressed.
  • Personalization: Dollar Shave Club uses data from their customers to send occasional personalized messages and upgrade offers. Use of this data allows the company to promote highly specific products in their monthly email messages, which increases the likelihood of conversion.

Each of Dollar Shave Club’s strategies is dependent on delivering their message in a personalized way, so the consumer feels the brand is speaking directly to them. Technology allows Dollar Shave Club to maintain an air of personalization, while also advertising on a mass scale.

Tech That Automates Personalization for Building Customer Relationships

Technological advancements like machine learning, data collection, and artificial intelligence, are making it possible to deliver messages and engage customers without investing significant man-hours. This allows companies to leverage the flexibility of technology while maintaining a small, intimate atmosphere around their brand.

Here are just a few options that allow even large-scale companies to manage this strategy successfully:

  • Auto response bots: Auto response bot systems are a new take on the touchtone hotlines of old. These systems are capable of recognizing important keywords and responding in a way that feels genuine. For example, a consumer might type in, “I’m having a problem with my billing.” The bot could then be set to respond, “I’m sorry to hear about that. Let me help you. I currently have your billing information as X? Is this correct or do you need to change it?”
  • Customer experience managers: Customer experience managers, which are mainly database systems designed to collect and organize your customer data, allow companies to separate said data into various audiences for retargeting. So, in the example of Dollar Shave Club, a female consumer may be more concerned with razors for shaving her legs, while a man might be more interested in how to avoid beard rash. Or, an older consumer might have more issues with ingrown hair due to thinner skin, while a younger one might have problems with shaving cream irritating acne. All of these factors can be accounted for by implementing a CEM to personalize experiences for specific consumers.
  • In-store beacons: Bluetooth-enabled devices that communicate with smartphones are helping build relationships with consumers as they’re in the shopping aisle, an aspect of mobile retail proximity marketing. Upon entering a retail location, a shopper’s mobile device receives a signal from a beacon if they have downloaded the retailer’s in-store app. The app will then offer the shopper deals, coupons, or location details for items he or she has previously purchased or shown interest in.
  • Shopping apps: Shopping apps allow brands to connect with consumers at the very moment they are looking for advice on where to shop and what to buy. These apps often offer rewards for purchasing or scanning the barcode of a featured brand. This kind of incentivized shopping experience allows brands to build a relationship and understand buyer behavior.

Connecting with consumers must include developing a way to personalize their experience quickly, efficiently, and seamlessly. This is best accomplished via the use of technology. Shopping apps, in particular, allow brands to connect directly with consumers at the very moment they are planning to make a purchase or seeking guidance.

Customization and personalization, backed by technology, helped Dollar Shave Club build a following for their brand. They understood what was important to consumers and chose to connect with them in a unique way. This customer relationship strategy helped them build their audience on an individual level, even as they expanded into a billion-dollar business. And your brand can follow suit by using a shopping app to power your connection to your buyers.

Well-designed shopping apps that make everyday shopping more personal and rewarding can give you access to real-time customer data, allowing you to make in-the-moment and relevant recommendations. They also allow you to create a relationship with a customer which can turn them into a loyal user.

Shopkick helps our partners build relationships with consumers by offering them opportunities to earn rewards for engaging with your brand. For more information on how Shopkick can help you create a stronger consumer connection, contact our team today.

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Brand awareness marketing strategies with proven ROIs

Brand awareness is the first step in growing market share for a CPG brand. When consumers are aware of a brand, they’re more likely to give it a try and possibly become a regular user. However, gaining this brand awareness is a challenge as a crowded marketplace has been a CPG industry trend in recent years—and will continue into 2018.

marketing strategies for brand awarenessAn effective brand awareness marketing strategy is not simply one that reaches your target audience but also one that has the potential to convert that new audience into active customers. There is still an abundance of opportunities to reach out to consumers despite growing competition in the sector, whether it be at brick and mortar locations, through social media, on television, or via radio advertisements.

While the strategies available to CPG brands looking to grow awareness are numerous, the effectiveness of each option varies greatly. To gain a greater ROI from your brand awareness marketing strategy, you need to be able to connect with consumers in a way that makes your brand memorable. Many established companies have already successfully managed this—and you can use their examples to guide and educate your own growth efforts.

Online Brand Awareness Strategies That Offer Strong ROIs

When building brand awareness for a CPG brand, you need to consider the goal of your target audience when they begin a search that will eventually lead them to your product. Consumers don’t always begin an online search with the intention of buying a specific product. Commonly, they are searching for information, a story, or simply to be entertained. Here are a few ways that successful brands have used online strategies to grow brand awareness:

  • Coca-Cola and connecting through icons: Many people have heard the rumor that Santa’s red outfit actually came from a Coke campaign. While not exactly the whole truth, there is a grain of reality to it, as the Santa we see today is heavily influenced by Coke’s marketing campaigns from the 1920s that depicted a very realistic Santa. By connecting their brand to an iconic figure, Coke was able to significantly increase their brand awareness. That awareness reached a point where some would say that Coke also managed to increase Santa’s brand awareness—at least the US version of him. Essentially, Coke managed to connect their product with a beloved figure, which transferred some of the adoration for that figure to their product.  
  • Dollar Shave Club and shock value: In 2012, the Dollar Shave Club rolled out of the gate with a viral marketing video that gained a lot of attention on a crowded platform. The video showed surreal images and came with the tagline, “Our Blades Are F**king Great.” The shock value of the video helped it gain 4.75 million views, with many of those coming from social media shares. The clear irreverence of the campaign gave the company an ‘everyman’ feel that consumers were quick to connect with and remember. Keep in mind: shock value doesn’t always prove successful as it can alienate some would-be customers. Ultimately, this is a decision you need to consider with your target audience in mind. Will the users it brings in develop a strong enough connection to make up for the ones that may be permanently turned off? For Dollar Shave Club, the answer was yes, as their target demographic of younger, blue-collar men, were more likely to be amused, rather than offended by the strategy.
  • Pedigree and building an emotional connection: In 2015, Pedigree rolled out its “First Days Out” campaign. The campaign featured the stories of two recently released convicts and shared how their dogs helped them reconnect with a society that had changed significantly in the time they were in prison. While it was a bold choice, as many would not consider convicts the ideal brand ambassadors, it targeted individuals with a strong belief in second chances. Specifically, it targeted an audience of dog owners who would choose to adopt a dog from an animal shelter, rather than buying one at the pet store, connecting that whole ‘second chances’ theme. The tagline “You save a dog. A dog saves you” was one that resonated with those dog lovers. The four-minute video gained a lot of attention for the brand and helped them connect with consumers in a memorable way.

All three of these brands used unique ways to connect with consumers as market share growth strategies. Either by partnering with icons they loved, creating a shocking moment, or tugging at consumers’ heartstrings, they were able to solidify their brand in front of a new audience. This is something that any brand is capable of achieving—and can be adapted to work with today’s digital platforms.

Adapting Your Brand Awareness Marketing Strategy to Maximize Your ROI

While the brands from the above examples focused on large campaigns, brands can also do all of the above on a smaller scale and achieve similar positive ROI results. Every measure that gets your brand in front of a new audience can offer a valuable opportunity. Simply by breaking down the larger campaigns into smaller components, we can see how this is done:

  • Partnerships: Your brand doesn’t need to integrate well-known icons into every commercial. Instead, you can leverage smaller partnerships to cross-market your products. This can be via partnerships with an online personality, or even with another, complementary CPG company. Shopping apps work to increase brand awareness as they expose your brand to an entirely new and actively engaged audience.
  • Anti-advertising: One of the reasons that the Dollar Shave Club video was so unique was that it allowed the brand to gain consumer attention through something other than outright product advertising. The video was played for laughs and, because of that, it drove viewers to want to watch—and share—it. Your brand can adapt this strategy by offering information or stories to consumers in a way that’s intriguing and memorable.
  • Personalization: The Pedigree commercial was memorable because it connected specifically with pet owners. Your brand can do this by finding a way to personalize communications based on who you’re reaching out to—or even when you’re reaching out. Consider the case of shopping apps again, only this time in regards to leveraging geolocation technology. If a consumer is in a store aisle looking for a whitening toothpaste, they may receive an advertisement for a specific brand of this or a complementary product. This is contextually relevant because the person is in a shopping environment, and are then offered incentives to either visit a store or interact with a specific product, driving awareness of your brand.

You don’t need a massive marketing campaign when using the strategies of other successful brands for building brand awareness. You simply need to be able to leverage the partnerships available to you to create a compelling message in the right moment. Shopping apps offer just such an opportunity. In partnering with an engaging third-party app to deliver your message to new and current target audiences, you can create a brand awareness marketing strategy that also ushers them through the sales funnel—ensuring your campaign delivers a positive ROI.

Shopkick is a shopping app that allows our partners to take advantage of the latest technology to share messages with consumers in real time. For more information, contact the Shopkick team today.

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Video advertising: Advantages and disadvantages for brand growth and awareness

Video advertising’s potential advantages and disadvantages are open to debate. Many companies have found video to be a powerful converter and have made it an integral part of their marketing campaigns. Others choose to go with more traditional advertising avenues. Determining if it will be profitable for your own brand is something that’s often difficult, though, as calculating the return on investment for video advertising isn’t possible until after you’ve run a campaign and can crunch the numbers. However, if you’re aware of the common barriers to success related to video marketing, you can overcome them and effectively utilize the medium to boost consumer awareness of your brand, and, as a natural result, sales.

Positioning video advertising to get your brand’s message across can be highly impactful on your brand awareness and bottom line, provided you use the right tools to make it visible. One way  to see a significant return is by crafting a compelling message and delivering it through third-party platforms. First, however, you must have a firm grasp on the advantages—and disadvantages—of video advertising in the digital age.

The Advantages of Video Advertising for Brand Growth and Awareness

It can’t be denied that video has a certain appeal that text and image-based advertisements don’t. While it can be a bit more expensive or time-consuming to develop than other mediums, it allows you to deliver a message that connects with consumers in a deeper and more genuine way.

Here are a few of the advantages of video advertising for brands:

the advantages and disadvantages to video marketing on apps

  • Video is popular: The first and most obvious reason to choose video is that it’s simply what consumers want. More than 70% of the online US public regularly watches streaming video online. This is an audience that can’t be ignored.
  • Video is a powerful converter: Video is an excellent way to increase brand recall. In one study, it was noted that 80% of respondents remembered the videos from brands they’ve watched in a 30-day period. That’s not the case for text and photos, which consumers are inundated with so often they rarely remember individual instances of advertising.
  • Video gives your brand a personality: Video allows you to give your brand or product a personality. They allow your consumers to connect with a person or situation, rather than an image, which can help to humanize your brand.
  • People share videos: It’s estimated that 92% of individuals who’ve viewed a video have shared a video. If you’re looking for an innovative way to increase brand awareness, then this is a number that you need to consider, as the more people who share your brand’s message, the more that awareness will grow.

Video is clearly an advantageous option for many brands of all sizes as it allows you to create a message with genuine impact. It’s specifically successful for growing brand awareness, as people remember and share videos more often than they do any other kind of content. That being said, it must be noted that video can have its disadvantages as well.

The Disadvantages of Video Advertising for Brand Growth and Awareness

While video might be a great medium for marketing, it needs to be acknowledged that not just any video can compete against a similar product or company that puts out quality text and images. A bad video can cost your company more in the long run as you could invest a lot only to see a minimal return on your investment.

Here are some of the potential disadvantages to consider with video advertising:

  • The market is saturated: While video advertising has a lower cost of entry now than it did in the past thanks to new tools like low-cost cameras and free-to-use hosting platforms, that benefit creates a disadvantage as well in that anyone can make a video. It’s estimated that 300 hours’ worth of video is uploaded to YouTube every minute! That’s a large pool that your brand is going to have to compete against.
  • Video doesn’t promote itself: Due to the staggering number of videos online, it’s not possible to simply post a video and hope for the best. Marketers need to essentially market their own advertising tools by sharing it—and ideally convincing others to share it as well.
  • A commercial is still a commercial: If your video is strictly advertisement-based, don’t expect a strong conversion. A big part of ad conversion is ad viewability. After all, a commercial is still a commercial. About 65% of consumers who watch online videos skip commercial ads. Brands that do the best with video don’t advertise. They offer content with real value.

While there are disadvantages of video, they can be overcome with better marketing, the right partners, and the right timing. By being aware of potential pitfalls, you can use the benefits of video to its full advantage.

Balancing the Advantages and Disadvantages of Video Marketing

The types of videos that get shared and improve brand awareness aren’t advertisements. Instead, they’re videos that provide useful content to the viewers. If you’re going to release video as a medium to advertise, it’s important to create branded content over pure product advertisements. Branded content may include:

  • How-to videos: These can be videos that show how to use your product or answer questions about it. They can also be videos that show your product being used in a new or unique way.
  • Product reviews: User-generated content, like product reviews, are a good way to share your brand’s message through a third-party. While not as easy to control, if you get a good review, ask for permission to share it on your brand’s page.
  • A behind-the-scenes look: People want to work with companies that feel human to them. Giving a consumer a sneak peek inside your company or interviews with your employees, for instance, helps to humanize your brand.

The options are extensive but the key to video advertising is to create content that’s not simply based on making a sale. Put yourself in your consumer’s shoes and ask yourself “Would I watch this?” when you’re considering a video campaign.

In addition, you need to put your marketing muscles behind that video. Share it on social media, your website, and encourage consumers to share and comment as well. One good way to leverage video is to offer it via a shopping endemic publishing platform, such as a shopping app. You can leverage strategically placed videos within these apps to help your brand stand out and increase consumer awareness.

When partnering with a shopping app, there’s a built-in and engaged audience at your fingertips. By creating a compelling video with a powerful, branded message, you can grow awareness of your brand exponentially.

Shopkick offers our partners the opportunity to reach users with video messages within an endemic shopping environment. If you’re interested in gaining more attention for your branded video content, contact our team today to learn more.

Image courtesy GaudiLab

How Retail In-Store Apps Are Reshaping Modern CPG Marketing

Although it’s a hot topic, in-store advertising is not a new or rare practice. Consumer packaged goods (CPG) brands do it all the time since retail spaces are often the best locations for them to grow. Typically this is done by negotiating the best spot on the shelf or by putting up in-store displays and ads. However, it is becoming more common for brands to advertise in-store using mobile apps.

rewards program apps for retail storesThese apps can interact with beacons within a retail location, delivering offers to the consumer once they are within a certain proximity to the store, working in accordance with GPS tracking. This is particularly effective since 59% of consumers are using their mobile devices while they’re out doing their weekly grocery shopping.

While advertising through a mobile app offers a direct line to the customer, it still needs to effectively grab their attention. Brands must find ways to leverage in-store experiences to get consumers interested in trying their products. Finding a unique slant on this is paramount to creating a successful campaign. Luckily, more than a few brands have built effective conversion strategies and have created unique experiences that you can use with your in-store mobile marketing plans.  

How Top Brands Leverage In-Store Mobile Advertising

In-store mobile-based marketing is a relatively new marketing avenue, so many brands are approaching this medium with pilots. In-store events, advertisements, and offers have been developed by many different brands with varying levels of success. Additionally, in-store beacon technology is enabling these campaigns to be more successful.  These are some of the tactics that the most successful brands use to take advantage of these innovations:

  • Exclusive location-based offers: One way that Best Buy drove adoption of its rewards program was by using it to push in-store mobile marketing offers. Consumers who downloaded the app would receive exclusive offers when they went to the store. Once they entered a store, they were also able to unlock rewards points that they could use on purchases and exclusive deals.
  • Cross-marketing opportunities: Often, there are in-store marketing opportunities from advertising alongside related products. For example, if you set up a beacon that advertises creamer or sweetener near the coffee aisle, the consumer will have more incentive to purchase it. The consumer may have come into the store to purchase a specific item, but now their app has enticed them to purchase additional products.
  • In-store engagement: One thing that can really get consumers involved in-store is to get them to play games or interact with the brand via their mobile device. Ace Hardware does this through in-store sites where consumers are encouraged to text a phrase to them, at which point they receive an offer in return. Their app engages consumers by acting as a virtual scavenger hunt, which can improve conversions.

Using in-store beacons to reach a customer on his or her mobile device increases the likelihood that consumers will try out a new brand. At the very least it drives brand recognition, as in-store mobile experiences are particularly memorable. This is because consumers are engaged in using the app, so they’re more likely to remember the brand than if they were just passively watching television or browsing a website.  CPG brands can model their in-store campaigns after those that other successful brands use. This helps ensure that their in-store messages have a lasting impact.

Tips For Building An In-store Campaign

Several brands have already found unique ways to leverage in-store marketing through mobile apps—and more are catching on. Consumers are responding to it too. For example, 70% of consumers in the CPG-focused Mobile Audience Insights Report reported that they decided to purchase a product for the first time after viewing mobile-based advertising. That number has nearly doubled since 2013. Nearly 70% also reported using their mobile device to research a CPG brand prior to purchasing it at a retail location.

Mobile advertising is changing the way that consumers shop, which is why you should change the way you leverage mobile in-store apps. That means creating a campaign that encompasses the following:

  • A value-driven approach: Value-driven doesn’t necessarily mean discounts. Instead, it means that the message gives the consumer something, whether it’s a reward, information or simply an enjoyable experience. Basic advertisements have large impacts in-store, but they are not long lasting. However, advertisements that engage the consumer by interacting with your brand tend to have a greater overall impact.
  • Proper consumer targeting: In-store advertising still needs to be focused on specific consumers. Consider two different consumers that are shopping in the same store. One is purchasing diapers, baby formula, and wipes. The other is purchasing a frozen pizza and a two-liter bottle of soda. Those purchasing behaviors allow you to draw conclusions in order to properly target the right consumer. So, if your brand is selling disposable baby bottles, then the first consumer is your ideal target. If your brand is selling chips, on the other hand, you’d likely want to target that second consumer. An app with high conversion potential will give you the data you need to make decisions like that.
  • Is not heavily focused on discounts: Simply offering one-time coupons via an app may get you a one-time sale, but it’s not a powerful brand converter. Relying too heavily on discounts is a mistake. This is because it generally only attracts price-conscious consumers. It can also lower the way your brand is perceived. In-store apps should leverage rewards rather than discounts as a way of gaining consumer attention.

Mobile in-store advertising is changing the way brands target and convert consumers. This type of advertising allows your brand to follow consumers through their purchase journey, reach them at the right moments, and increase the likelihood that they will try your brand. Several brands have already used this successfully by creating unique personalized and interactive campaigns that pull in users.

As beacon-based advertising technology and mobile geolocation are both relatively new, it’s best to choose to work with a company that already has some understanding of the industry.

One thing that these brands do is leverage partnerships with third-party experts who understand the unique opportunities presented by mobile apps. As beacon-based advertising technology and mobile geolocation are both relatively new, it’s best to choose to work with a company that already has some understanding of the industry. This is where third-party shopping apps come in.

Third-party shopping apps allow you to access these in-store marketing opportunities quickly, without having to create an expensive, long-tailed marketing campaign. These apps also give you access to a database of active users who want to connect with your brand. For any company that wants to make a stronger in-store impact through mobile marketing, third-party platforms are the ideal choice.  

Shopkick is a unique shopping app that allows its partners to leverage all of the best parts of in-store mobile advertising. To work with us and increase your in-store conversion, contact our team today.

Image courtesy Pixabay user kc0uvb

Creative Customer Rewards Program Ideas to Engage New Shoppers

While loyalty is important to maintaining a brand’s current market share, pulling in new leads is the catalyst for true growth. Increasing market share is easier said than done, however, as your company’s goal is the same as millions of other companies—and there are only so many consumers to go around. In a crowded, overly saturated marketplace, your brand must find a way to rise above the static and noise.

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The Best Brand Awareness Campaign Ideas for 2018

The Best Brand Awareness Campaign Ideas for 2018

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Building brand awareness in the modern marketing era is no easy feat. Ironically, it’s because there’s almost too much opportunity to build it. The once high expense of advertising acted as a gatekeeper. However, thanks to the rapid rise of technology and innovative marketing mediums, consumers are now exposed to up to 5000 ads per day compared to only 500 in the 1970s.

Television, newspaper, and radio ads used to be the most effective options for marketing branded content. Then came the introduction of internet-connected devices continuously pushing branded advertising. As a result, marketing professionals looking for opportunities to gain brand awareness in 2018 are at the forefront of a new era in advertising, one with a much lower barrier to entry.

Brand awareness has become less about how much a company is willing to spend and more about how well content connects with consumers, regardless of budget. If your marketing team is trying to expand brand awareness or market share in 2018, you’re likely going to have to consider options that were unheard of even a few decades ago.

Advances in all realms of technology have companies rushing to adopt the latest high tech approaches to gaining an audience’s attention. However, some of the best brand awareness campaign ideas for 2018 aren’t going to be high expense advertisements. Instead, they’re going to be designed around personalizing the consumer’s experience by traveling with them and reaching them right where they are.

Targeted, Not Big, Advertising for the Best 2018 Brand Awareness Campaigns

Back in 2004, Chanel No. 5 earned a Guinness Book of World Records slot for creating the most expensive marketing campaign ever. The star-studded, four minute long film cost $33 million to create and certainly garnered a lot of attention during its release. Primarily displayed in movie theaters prior to feature films, the advertisement was successful in creating brand recognition for the iconic perfume among a new generation.

This is a prime example of big advertising, where the goal of the ad is to create buzz throughout the industry. However, it’s also a huge risk. Chanel could only afford to do such a massive campaign because they already had an extensive, recognizable brand. For the most part, these major advertising campaigns won’t work for smaller brands because:

The ROI is limited:

The math for the ROI on Chanel No. 5’s commercial is pretty simple. The commercial cost them $33 million to make. The cost per bottle of perfume is around $130. To break even on the commercial, the company would have to sell about 255,000 units. That’s an extremely high break-even threshold that most smaller brands offering products at a lower price point can’t reasonably hope to meet.

The audience isn’t targeted:

Big advertising means a broad audience. It’s a bit like that old saying about fishing with dynamite. While the ad may get exposure to a giant audience, only a percentage of that audience is interested in buying the product. Without targeted marketing, consumers don’t feel a personal connection to a brand.

Consumers’ attention spans are getting shorter:

Commercials are short for a reason. According to a Microsoft study, the average human attention span is about 8 seconds when it comes to advertisements. That’s down from ten seconds in the early 2000s. Much of this can be directly attributed to increased competition for consumers’ attention. In 2004, when the Chanel advertisement came out, the iPhone was still three years away from being released, so cell phones posed less of a distraction than they do now.

Big advertising to a mass market may no longer be the most viable option for most smaller brands seeking brand awareness to increase market share. Larger brands, as well, may need to complement their above the line ad campaigns. In general, brands need to shift their thinking from making a large impact with a single, oversized campaign to making a hundred smaller, more personalized impacts with repeated interaction on social media platforms such as Facebook, Instagram, and mobile apps. With the technological resources available today, this can be done inexpensively and has the potential to reach a far more targeted audience.

Advertising in the modern media age should center around capitalizing on shorter attention spans and the consumer’s desire for more meaningful interaction. This approach works for brand awareness campaigns because it offers:

  • Highly target audiences: Expanding the focus from mass media to social media allows you to better target campaigns based on demographic and prior purchase behaviors.
  • Increased ROI: Using less costly tactics – that are still highly effective – increases ROI
  • Shareable content: Social media allows consumers to share your marketing material, organically increasing brand awareness with no additional investment required.

Micro Mobile Moments Are Behind the Best Brand Awareness Campaigns

The average consumer touches their phone an astonishing 2,617 times a day. Sometimes it’s only for a few seconds to check an email. Other times, it’s to look something up online, watch a video, check social media, or send a text. Nearly every one of these moments, though, is an opportunity to market. Brands can use these micro mobile moments to quickly connect with consumers and build brand awareness.

Goodyear is a company that has capitalized on these micro moments. Instead of focusing on advertising, they focused on catching consumers’ attention during these tiny slots of time when users turned to their phones for information. When consumers type in a phrase like “how do I change a tire” or “how much should a rotation cost me,” results from Goodyear are prominent.

While the company doesn’t use these opportunities to directly advertise their services, their answers are branded with their logo. This approach naturally increases brand recognition by offering a memorable and, most importantly, personalized moment. When a consumer is looking for information about a product or service, the brand that provides the answers is the one that gets to capitalize on that moment.

Micro mobile moments offer brand recognition through repetition. By leveraging mobile opportunities, your brand can create a campaign that connects with the right audience at the right time, even if only for a moment. This approach is one of the best brand awareness campaign ideas for 2018 because:

Repetition is king when it comes to brand awareness:

Repetition through micro moments increases brand recognition—and consistently reinforces that awareness.

It approaches consumers where they are—their smartphones:

This approach leverages the personal device most consumers use to research products.

Your brand gains trust points:

By answering consumers’ questions, you’re able to present your brand as a subject matter expert, which doesn’t just increase a consumer’s awareness but improves consumer opinion of your brand.

However, micro moments aren’t entirely dependent on mobile search. In fact, mobile-based apps can offer an even greater opportunity to connect with consumers.

App-Based Opportunities in Building Brand Awareness Campaigns in 2018

Building brand awareness via apps can be done one of two ways. Either the company can create a branded app or they can leverage an existing third-party app. Branded apps are designed specifically for your brand, which sounds like a benefit. However, they’re challenging to get consumers to adopt. In fact, 75% of apps are downloaded once and never used again.

Unless you’re in a position where you’re able to create a unique, useful app that prominently displays your brand, it’s unlikely that you’ll see significant success with a branded app. For the most part, consumers don’t use branded apps focused on a single brand or product regularly, the exception possibly being retail stores such as Target and Walmart as their offerings are more diverse.

While number of downloads is the primary metric for many companies, average daily users is a far more useful number. This is the key to success when you’re leveraging mobile apps for marketing as 24% of apps downloaded in 2017 were only used once. As such, instead of using a branded app, companies instead may piggyback on an existing app, partnering with a third party that has an already established audience. This allows the brand to instantly gain access to a high volume of average daily users, easily increasing brand recognition within a highly targeted audience.

When choosing a third party app to represent your brand, you should consider the following elements:

Relevancy to your brand and product offerings:

When you partner with a third-party app, it needs to be relevant to your brand and fill a need for your consumers. Disney Parks did this when they partnered with Lyft for their Minnie Vans program. The promotion used the Lyft app to provide transportation to Disney Parks.

A targeted demographic:

Before your brand partners with an app, thoroughly understand its demographics and break it down to its niche audiences. It’s no longer enough to focus on gender or generations. Mobile apps offer the opportunity to understand your audience on a deeper level. Individuals often access these apps by signing in through social media, which shares info not just about gender and age, but also about marital status, if the user has children, prior purchases, income, and more. When choosing a partner app, confirm that your brand can access that data to give you a very specific picture of their average user.

Timely marketing opportunities:

Ideally, you want to be able to leverage the app at the right time. So, while gaming or social media apps might be popular among consumers, they aren’t used for a specific task. However, a consumer who uses a shopping app while grocery shopping is motivated to buy and therefore an extremely valuable audience for gaining brand awareness—and converting that awareness into market share.

Permissive use for marketing:

While social media apps are filled with active, regular users, these users aren’t there to be marketed to, they’re there to be social with friends and family. As such, heavily pushing advertisements to consumers on these apps is often frowned upon. However, apps specifically designed for consumers seeking out purchase options, like shopping apps, are ideal. Consumers using these types of apps are open to advertisements—that’s the reason they signed up for the shopping app in the first place.

Shopping apps are particularly effective at gaining brand awareness as they fulfill each of these components, facilitating interactions between brands and consumers. Shopping apps also travel with the consumer throughout their day via their smartphone. And a partnership with a popular, well-respected app allows for successful cross-marketing opportunities.

Consumer dependence on technology has inevitably changed the world of advertising. Brands are presented with thousands of opportunities every day to use that to their advantage for building successful awareness campaigns. In 2018, the ideal way to leverage those opportunities is via third-party shopping apps. Consumers are already using mobile devices to assist them in choosing products; mobile shopping apps make it easy to then incentivize purchase and increase your market share—the ultimate goal of most brand awareness campaigns.