How Augmented Reality Is Driving Today’s Automotive Industry

We may not have flying cars yet, but the vehicle buying and manufacturing process is becoming the stuff of science fiction. Augmented and virtual reality are bringing the automotive showroom floor to consumers, visualizing concepts for engineers and training employees like never before.

Last year, BMW became the first car manufacturer to introduce a mixed reality system into vehicle development, devised entirely using components from the computer games industry (Unreal Engine 4). “Virtual reality applications are a good way of making our innovations something to experience and of illustrating our technology in clear terms. We use it both for our employees in training courses and for our customers at dealers,” Niklas Drechsler, who handles corporate and governmental affairs for BMW Group, told [a]listdaily.

Volvo’s partnership with HoloLens is a strategic move that introduces emerging technology into the manufacturing and purchasing journey. “Brands need to do more than just be at the forefront. We, as creators, need to make good experiences and initiatives—period,” Bruno Renhult, Volvo’s senior manager of artificial reality, told [a]listdaily.

If you’re not looking forward to spending days off work to visit multiple dealers or buy online and hope for the best, adding AR/VR to the mix can be a welcome change in the buying journey.

US car dealers spend $2.75 billion annually on interest to keep new vehicles on their lots, per Bloombergso allowing consumers to visualize different models and options is not only forward-thinking, but practical. Gartner believes that by 2020, 100 million consumers will shop in augmented reality due its ability to help visualize purchases.

BMW, for example, launched a visualization tool on Google Play that allows users to explore different options on its latest models. Hyundai created an augmented reality app that acts as a user’s manual—identifying components of the vehicle and instructing the user on how to perform maintenance. Mercedes-Benz even offers a rescue assist app that tells first responders about the vehicle—especially where it is safe or not safe to cut.

An October study says that the automotive AR market will grow steadily at a compound annual growth rate of almost 18 percent by 2020. This may be attributed to an increased use of heads-up display (HUD) in a variety of vehicles. An August report by ABI Research indicates that by 2025, more than 15 million AR HUDs will ship, with more than 11 million to be embedded solutions.

Car manufacturers are increasingly using AR and VR muscle for training and development, and the technology will not be driving into the sunset anytime soon.

How ESL Is Bringing Non-Endemic Sponsors Into IEM

Intel Extreme Masters (IEM) has grown in physical attendance and online viewership consistently over the past 11 seasons, paving the way for ESL and Intel to attract more non-endemic brands to eSports. This year’s event in Katowice, Poland, which is spread over two weekends through March 5, features companies like Gillette, Sprite, GFuel and Credit Agricole.

These IEM world championship events across League of Legends, StarCraft II and Counter-Strike: Global Offensive (CS:GO) have broken records each year with over 113,000 visitors to the IEM Expo and over 34 million livestream viewers tuning into the action last year.

Michal Blicharz, managing director of pro gaming at ESL, joined [a]listdaily to explain why non-endemic brands are flocking to competitive gaming and to forecast which verticals will enter the fray next.

IEM Katowice Spodek arena

How is Katowice expanding its footprint for this year’s two eSports events over the two weekends?

We ran out of space to accommodate all of the eSports fans last year, so we have decided to experiment with having the event over two weekends this time. This was the only thing we could do short of building another venue next to the Spodek Arena and the International Congress Center. It has allowed us to extend the tournaments for fans of each respective game without congesting the schedule in the stadium. No one had done anything like this, to my knowledge, so the whole industry will be much wiser after the double event is over. It definitely feels like the right thing to do right now.

Are there any comparisons to traditional sports when it comes to the amount of materials and trucks and cable, etc. that it takes to produce these huge IEM events?

I am not too familiar with traditional sports productions, but if you want some mind-bending numbers and facts, then I will tell you that it will take 1,845 work days’ worth of effort in under two weeks to pull off the event. This is the core event crew only, not including external staff we’ve hired to build the stage, security, catering staff and several other agencies. This is going to be a herculean effort by the company—it’s the largest amount of work ESL’s ever done for one event.

What type of increase is there this year with sponsors for the IEM Expo area, and how has that grown?

We’ve got about 8,000 square meters of space in the expo hall. We’ve been fortunate to have sold out the space every time. But what we’re noticing is that the non-endemic brands are really pushing to be in the eSports space. Next to the usual suspects from the technology space, we’re working with companies like Gillette, Sprite, GFuel and Credit Agricole. We’ve had dozens of conversations with insurance companies, car brands and various other lifestyle brands. We want to open the event even more to lifestyle brands in the future, since there’s clearly demand on their end.

What opportunities does the IEM Fan Expo open up for sponsors and brands?

We’ve learned from Intel that it’s not enough to just show the logo behind players on stream for a brand to reach the audience in a meaningful way. It needs to be the whole experience, from visibility and brand integration in the tournaments to providing the audience meaningful activities whenever their favorite players happen to not be playing. It’s a great place to showcase your product and get it in front of the most savvy and the most demanding consumer out there, and to build a long-term relationship with him or her.

IEM Katowice 2017

What do you see VR opening up for sponsors and brands this year? And beyond?

Sliver.tv is going to be offering our content in a VR broadcast. It’s something we’ve already done with them at a couple of events. We will also have a full VR technology and games day at the auditorium inside the International Congress Center where the audience will be able to compete, see influencers play the best VR titles and find out more about the technology. I’m excited to see how it turns out.

How have you seen interest by non-endemics in eSports impact IEM this year?

We have got a brand new deal with Gillette, and it is their first ever engagement into eSports of this magnitude. There are more and more interesting opportunities that we’re exploring. I think car companies will be next on the list.

What role do the companies like Intel that have been around from the early days play in eSports today and moving forward?

Intel has been eSports’ first major supporter and has pushed the industry for many years before games like League of Legends exploded and changed the landscape forever. They’ve invested tens of millions of dollars into competitive gaming, and there’s every indication that they are not going to stop. It makes sense—their chips are at the core of what we do both on the gaming side and on the broadcast and content production side as well. They are to us what Spaulding is to the NBA. It’s hard to imagine eSports without them.

How The NBA And 2K Sports Will Play Ball With ESports Partnership

The NBA and Take-Two Interactive Software will launch the NBA 2K eLeague in 2018, a new professional competitive gaming league that will unite the best basketball gamers in the world. Although several NBA teams, including the Sixers and Heat, have purchased eSports teams, this marks the first official eSports league operated by a US professional sports league.

2K and the NBA will run the new league, which will consist of teams operated by actual NBA franchises. The founding teams will be composed of five professional eSports players who will play the game as user-created avatars. The NBA 2K eLeague will follow a professional sports league format: competing head-to-head throughout a regular season, participating in a bracketed playoff system, and concluding with a championship matchup.

Jason Argent, senior vice president of basketball operations at 2K, told [a]listdaily that this new league was born out of the company’s first two eSports events. They hosted the NBA Road to the Finals tournament last year with winners competing in Los Angeles and attending an NBA Finals game.

And this year, 2K crowned the winners of its NBA 2K17 All-Star Tournament during NBA All-Star in New Orleans. Competitive team Still Trill competed alongside hundreds of thousands of teams for the title, winning the $250,000 grand prize and tickets to the 2017 NBA All-Star Game. Nearly two million fans tuned into the livestreamed championship event via multiple digital channels, including one million on Twitter.

NBA 2K17 New Orleans

After the check presentation, the winning team of five competed against NBA stars Kevin Durant, Kyrie Irving, Paul George, C.J. McCollum and Aaron Gordon in a friendly exhibition. Still Trill extended its winning streak, defeating the team of NBA players, 95-52.

“Last year in Los Angeles was our first event, and on most levels, it was a success, but there was a ton of stuff we learned from a structural, design and event standpoint for eSports and competitive gaming,” Argent said. “We walked away from that with big positives on how we recruited players and how many people were involved in the tournament. We deemed it a success and took those learnings and brought them to New Orleans. And our numbers will prove that out. My belief is with these events we laid groundwork with the NBA for the NBA 2K eLeague.

Argent said from a bigger-picture-brand-and-development standpoint, there’s a strong internal challenge to evolve the NBA 2K video game franchise, and not rest and ship the same game.

“ESports is the same in how to build out this league, and take it to the next level,” Argent said. “The NBA players and athletes we work with have embraced the game, as well as the competitive game aspect of it. The NBA players love playing at that level and these tournaments were well received by them.”

Multiple NBA teams, including the Sixers and Heat, as well as current (Jonas Jerebko) and former (Rick Fox, Shaq) NBA greats have already invested in traditional eSports teams competing in games like League of Legends, Counter-Strike: Global Offensive and Dota 2. Now the rest of the NBA has been invited into the virtual arena.

“All 30 teams have been presented this opportunity and there’s a variety of interest in some capacity,” Argent said. “Some teams want to get in immediately and there are others that may need time. We’ve scaled and structured this league enough so we could support a great number of teams, and we guess about half will be involved.”

Argent believes the NBA 2K eLeague leverages the best of everything that 2K and the NBA do well.

Take-Two CEO Strauss Zelnick, right, joins NBA Commissioner Adam Silver to announce their joint partnership.
Take-Two CEO Strauss Zelnick, right, joins NBA Commissioner Adam Silver to announce their joint partnership.

“We know the development of the video game franchise and how to lay the groundwork and structure to launch an eSport, while the NBA knows how to run a league,” Argent said. “They have independent local teams and fan bases to reach and they know how to bring people into the arenas. We look at this as a marriage made in heaven.”

Sacramento Kings co-owner Andy Miller said Golden 1 Center was built for eSports. And the NBA has many state-of-the-art arenas, including Staples Center, home to two League of Legends championship games.

“NBA arenas are a great opportunity for us, the NBA, and the teams,” Argent said. “This thing could go in many ways, but the vision is to have our eSports teams play consistent with the real teams. As an example, perhaps the team has an eSports event that happens three hours prior to an NBA team event. This could drive an early, and potentially new and broader audience, into arenas, spending more time on merchandising and food and beverage—extending the time engaged with the team and the brand.”

Argent said 2K is trying to learn as much as it can from the traditional eSports world.

“We have no egos here,” Argent said. “We’re trying to learn as much as we can from that. But part of the success we’ve had with the NBA is carving our own path. We’re trying to do what’s inherent and endemic to what our brand does. This marriage between an international sports league and video game company has never been done before.”

Both the NBA and 2K cater to an international audience—although the target audience for a game like NBA 2K is likely more broad than titles from the traditional eSports landscape.

“There’s a language people see with eSports, which is an enormous business—but not what I’d call mainstream,” Argent said. “There’s a huge opportunity to connect with fans of the NBA—like my dad and my wife—to understand what eSports looks like in the context of something they follow. And that will follow with sponsors as well. Our numbers will prove the value to our partners. We’ll potentially get non-endemic sponsors now to see this NBA 2K eLeague as palatable to reach consumers.”

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Argent said beyond the national and international brand and sponsorship opportunities, individual NBA teams could benefit from the new league.

“One of the biggest opportunities is for individual teams to work with great local partners to connect with these new eSports teams,” Argent said.

Just as eSports has emerged as the first truly digital-native sport, the NBA has been at the forefront of connecting with its digitally savvy audience across all emerging platforms.

“I look at eSports as consistent with all other sports in that TV has a role in sports,” Argent said. “We’ve seen the role of TV change over the years, with how much viewership happens online, and on social platforms like Twitter.”

Argent said Take-Two CEO Strauss Zelnick made a point that everyone played basketball, and then at some point, people started watching NBA players play the sport, too.

“People aren’t used to watching people play video games on TV, but there’s an appetite for that,” Argent said.

January Digital Game Sales Yield Surprise Success For These Titles

Holiday purchasing power extended to January, helping the global games software market’s total digital revenue to reach $7.47 billion. This was a healthy 9.8 percent year-over-year increase, according to SuperData’s latest monthly report. 

The transition from physical copies to digital downloads shows no signs of a slowdown, SuperData reported, particularly in the US where the segment rose 43 percent. Digital console and premium PC led this movement in January with 32 percent and 34 percent year-over-year rises respectively.

January was another strong month for Grand Theft Auto V, which despite being over three years old, held the No. 2 console sales spot and even outperformed itself over the same period last year. GTA Online grew year-over-year as well, continuing the trend of a seemingly unstoppable game.

Studio Wildcard’s prehistoric adventure game Ark: Survival Evolved launched on PlayStation 4 in December and continued to rise in popularity throughout January. The game has built a loyal streaming-and-modding community online, which helped lift the title to the No. 4 slot—ahead of titles like Battlefield 1 and Destiny.

Call of Duty: Infinite Warfare continues to lose steam, however, slipping down from No. 1 in December to No. 3 in January. Activision’s latest shooter is down 41 percent from Black Ops 3 in the prior year. “This was partially offset by another month of solid average selling price growth thanks to continued sales of the Modern Warfare bundle,” SuperData noted in the report.

January brought a surprise contender to the table with Zynga Poker. The Facebook and mobile game had its strongest month in years, with $13 million in revenue—up 94 percent from the same month last year. Zynga Poker saw a conversion rate of 4.9 percent, the highest reported monthly rate since launch and fueled by online tournaments, January marks the fourth consecutive month with revenue growth.

FIFA 17 rose to the No. 1 console spot, knocking Call of Duty: Infinite Warfare down to No. 3. Battlefield 1 lost steam after the holidays, dropping four spots to No. 6 in January sales. Clash Royale is holding firm as the top mobile game, and Pokémon GO held its position as No. 4.

On PC, the top three titles are virtually unchanged from December, held by League of Legends, Crossfire and Dungeon Fighter OnlineOverwatch rose one spot to No. 4, knocking World of Warcraft down one spot.

Twitch Announces Direct Game Purchasing During Livestreams

Today, Twitch announced that it is enabling the sale of games and add-on content directly on the livestreaming platform this spring by using a “Buy Now” button, which appears during broadcast for a related game. The purchasing system, which was first introduced with the game Streamline in November, has been greatly expanded to include both indie developers and AAA game publishers, including Ubisoft, Telltale Games, Digital Extremes, Hi-Rez Studios, tinyBuild, Paradox Interactive, Trion Worlds, Vlambeer, and more.

“For years we have appreciated how supportive Twitch streamers and viewers have been of our games,” said Chris Early, VP of digital publishing at Ubisoft, in a press release. “This made it an easy decision to work with Twitch to better serve our passionate community with benefits for everyone.”

Not only can viewers buy games while watching a livestream—an ideal point of engagement—but streamers can earn money from purchases. As stated in the press release: “Developers will earn 70 percent of the revenue and partnered Twitch streamers will earn five percent for sales originating from their channel pages.” As additional incentive, Twitch is rewarding buyers by offering them a free Twitch Crate, which contain randomized item drops that enhance the viewing experience, such as exclusive emotes, chat badges and Bits for Cheering.

Mock Up Image of how it will look

“We are allowing the sale of games and in-game content on Twitch for two reasons,” Robin Fontaine, product marketing manager of e-commerce for Twitch told [a]listdaily, “to help support our partnered streamers who will receive a revenue share from sales on their channel pages, and to help game creators be more successful on our platform.”

In explaining the purchasing process, and whether it competes with digital storefronts such as Steam, Origin and Uplay, Fontaine said that “the purchase experience happens on Twitch right on the channel page. Content is purchased from Twitch, not a third-party store. When a game or piece of content is redeemed through an existing service like Uplay it is done by linking the buyer’s Twitch account to his/her Uplay account.”

Furthermore, viewers that already own the games can still purchase digital content through Twitch. “If the developer has an ID system that integrates with Twitch, users can buy items on Twitch to enjoy in their existing game installation, wherever that might be,” said Fontaine. “We fulfill to any developer ID system and are agnostic beyond that.”

Fontaine explained that the system won’t yet support pre-release purchases during beta event livestreams, but the Buy Now button will automatically appear for streams of related games. “An offer to buy a game or in-game content will appear automatically on all streamer channel pages when a game is being played that is offered for sale by Twitch,” she said. “Only partnered streamers will be eligible to earn revenue through this program.”

We asked Fontaine if it was difficult to convince publishers and developers to get on board with the program. “Publishers already know how important it is to invest in communities on Twitch and completely understand the value of rewarding streamers who help gamers find their content,” she said. “And since the revenue share to streamers does not come out of the publisher’s revenue, it was a no brainer.”

As for free-to-play games, Fontaine said that “if a free-to-play game has been integrated with Twitch Games Commerce, in-game items can be purchased through Twitch. Gamers will link their Twitch account to their game identity accounts and items purchased on Twitch will show up automatically in the game.”

M&M’S Markets To Millennials By Marrying The Colorful Candy With Movies

If you ever wanted to be trapped inside an experience where it felt like you were eating mouthfuls of M&M’S, but only with your eyes, then look no further than the candy brand’s latest marketing material that promoted their 75th birthday.

M&M’S debuted a four-minute film with contemporary artist KAWS and fashion and art publication Visionaire that combined the colorful chocolate hues of the candy with the intricacies of the artist to create a virtual reality experience filled with swirling colors, mystifying perceptions and transforming shapes.

Tanya Berman, brand director for M&M’S, joined [a]listdaily to offer more details on their immersive marketing activation and how they want to veer into artistic storytelling.

James Kaliardos, Cecilia Dean, KAWS
James Kaliardos, Cecilia Dean, KAWS

What is M&M’S trying to accomplish with VR and being a patron of the arts?

There are a lot of consistencies between the colorful chocolate M&M’S and the colorful wildness of KAWS’ mind. We wanted to connect with a new audience to help show the fun of the M&M’S brand in an artistic light. Working with KAWS and Visionaire to bring this to life was a natural fit.

How was the in-person experience received at the New York Public Library?

Last month we screened the virtual reality film at the New York Public Library to give more than a thousand consumers a chance to put on a VR headset and step into KAWS’ virtual studio. This was the first time many of the attendees had watched a virtual reality film—they were amazed by the 360-degree video angles and excited by the immersive experience.

Are you testing any other new emerging technologies and platforms?

We’re always looking for the next fun idea and are currently exploring creative ways to use technology for the launch of M&M’S Caramel innovation later this year.

Are there any emerging trends that you’re looking at to explore and innovate the brand?

We’re looking to explore a presence in the entertainment space with a strong focus on movies and music, as M&M’S are the perfect candy for these types of occasions. We want to remind consumers how M&M’S are all about fun—and what’s more fun than concerts and movie? 

What are the insights and data that influence your marketing strategy?

The M&M’S brand strives to connect and remain relevant with millennials. To celebrate the brand’s 75th anniversary over the last year, we were able to bring to life the fun that our iconic chocolate brand stands for. Looking ahead, we’re going to be bringing fans more experiences to participate with M&M’S at concerts and movies.

VISIONAIRE PRESENTS : KAWS A VR EXPERIENCE AT NYPL

How would you assess your 75th anniversary marketing that started in March 2016? What kind of messaging worked well? Which was your favorite?

Celebrating M&M’S 75th anniversary was a successful experience. We took our fans on a year-long celebration to the next level with the ‘Celebrate with M’ campaign. It featured star-studded events, exciting new products and iconic collaborations that cemented the brand’s place in pop culture history. It was great to get fans involved in the celebration. My favorite initiative was our ‘Flavor Vote’ campaign where, for the first time ever, we asked fans to vote on the new M&M’S Peanut flavor. Coffee Nut was the winner.

What else is in store for the brand? How do you think it can further evolve? 

As we move forward in 2017, we’re really excited to launch new M&M’S Caramel Chocolate Candies. They will feature a smooth caramel center covered in delicious M&M’S Brand Milk Chocolate and coated in a colorful candy shell—offering the ultimate combination of flavors in every bite-sized piece. Launch plans are still a secret, but we’re looking forward to an exciting year.

Follow Manouk Akopyan on Twitter @Manouk_Akopyan

https://www.youtube.com/watch?v=7bxGl6IxzSs

How VR Could Forever Change The ESports Landscape

While still in its infancy, virtual reality is changing the way gamers view interactive entertainment, and that extends to eSports. A recent Juniper Research study predicts that VR revenue distribution for gaming will reach $9 billion by the end of 2020. Resident Evil 7: Biohazard is the first AAA game playable entirely in VR and Capcom reports an impressive 9.4 percent of players are choosing to play this way (or at the very least, opted in to share this data). Resident Evil may not be competitive, but it’s a good sign that so many fans are willing to invest in VR.

In a similar vein, developers are investing in VR to enhance eSports both in how they are played and how they are viewed by the audience. “Active spectating in VR experiences is something I believe we’ll see a lot of development in over the next few years,” Ray Davis, CEO and co-founder of Drifter Entertainment told [a]listdaily. “Right now, we primarily watch our favorite pros superimposed over a video capture of the game. While that can be compelling, it rarely shares that same feeling as being physically courtside at your favorite ball game. With VR spectating, there’s no reason you can’t be toe-to-toe in that same situation, and get an experience that exceeds what you’d be able to experience in reality. Beyond that, there are a lot of interesting opportunities to involve active VR spectators into the match as well, much like how services like Twitch are offering more and more ways for fans to engage with their favorite players.”

Bryan Chu, vice president of marketing for VREAL agrees. “I see a broadening of the ways people watch eSports [and] engage,” said Chu during the [a]list summit last week. “When you get inside the game [with VR], it blurs the lines between viewer and broadcaster. You get a much bigger sense of presence and you start getting that connection between the fans, the athletes and the stars.”

ESL One New York became the first eSports tournament streamed in virtual reality this past October, thanks to a partnership with Sliver.TV. The CS:GO tournament was viewable in 360 degrees with either VR or normal video viewing. If screaming from the seats is more your thing, fans can experience a virtual eSports stadium experience, as well, beginning at the Intel Extreme Masters (IEM) World Championship 2017 held on February 25 through 26 and March 3 through 5 in Katowice, Poland. While a premium experience is available for HTC Vive, Oculus Rift and Samsung Gear VR, anyone can check out the stream with Google Cardboard as an inexpensive alternative.

“At Newzoo we believe the biggest commercial potential for VR is on the spectator side,” Newzoo CEO, Peter Warman told [a]listdaily. “Watching an NBA game live from Jack Nicholson’s seat or walking around on the battlefield itself during a Dota 2 or CS:GO final are two examples. In that respect, eSports brings to VR what sports does. That appeals to a larger group of people than playing VR games itself.”

While there is an obvious market to bring spectators into eSports through virtual reality, what about the players, themselves? Developers are working on that, too. Chinese game company Hero Entertainment has entered a partnership with Virtuix, creator of the Omni motion platform—a full rig that allows players to run or walk in place in addition to the usual VR hand controls or looking around. Hero is bringing its popular shooter title, Crisis Action to virtual reality using the Omni to create a VR eSport in China. Hero also owns the largest mobile eSports league in China, the Hero Pro League, so that’s a great start.

Hero Entertainment is hoping to adapt an existing title into VR eSports, while other developers are building an experience from the ground up. Colopi NI CEO, Jikhan Jung believes that VR will eventually replace gaming on the PC. “This is why our strategy is to create VR games that are socially engaging.” The Japanese game developer recently released Cyberpong VR for the HTC Vive. “We think that VR is currently too isolated for a single player experience, which can be lonely. Having fun together is the most important part of good game design for VR, since the platform really lends itself to a social experience.”

Statements like these invoke visions of a team of players strapping themselves into VR and battling it out, Tron-style in a simulated arena. Meanwhile, spectators all over the world could virtually step right onto the game map, post on social media and interact with other fans all within a live broadcast. It may be a while before ideas like this become reality, but the wheels are already in motion so, we’ll just have to enjoy the ride.

Ad Blocking: Call To Action Or Threat To Marketing?

Whether we like it or not, ad blocking is on the rise across the world. Yes, despite all that hard work marketers put into advertising, a lot of consumers want none of it—especially on mobile devices.

While some brands view ad blocking as a challenge to create more engaging content, others condemn the practice altogether. Regardless of where you stand on the issue, the practice of ignoring online advertising won’t go away anytime soon . . . although it’s not as bad as it might be perceived.

Analyst firm eMarketer has actually scaled back its estimates of ad blocking users in the US, reducing the number from 86 million to 75.1 million for 2017. While this is an improvement over previous estimates, more than one quarter (27.5 percent) of US internet users will still be using ad blockers this year. The younger the consumer, it seems, the less willing they are to view advertising. The firm predicts that 41.1 percent of millennials will utilize ad blockers in 2017 compared to GenX internet users at 26.9 percent. Baby boomers rarely use blockers, the firm suggested, predicting a usage rate of only 13.9 percent.

If you can’t block it, skip it. A study by online survey platform LaunchLeap found that 59 percent of millennial internet users watch ads only until they can skip them. Despite a majority of respondents displaying a desire to skip the ads, only 11 percent were blocking YouTube ads via an ad blocker. Surprisingly, 29 percent of US millennials reported watching YouTube ads all the way through.

US Ad Blocking User Penetration, Desktop/Laptop vs. Smartphone, 2014-2018 (% of population)

Teenagers, in particular, don’t have much patience for mobile advertising, according to an October study of internet users from Kantar Millward Brown. Approximately 56 percent of 16-to-19-year-olds said they skipped ads “whenever they can” on a desktop computer, while 47 percent of teens said the same about ads on a mobile device.

Mobile ad blocking is especially prevalent in emerging markets such as China, India, Pakistan and Indonesia. Research by Priori Data suggests that 27 percent of mobile users in the Asian Pacific region use ad blockers on their mobile devices as of last March.

Is this bad news for the marketing industry? It depends on who you talk to. More than three quarters of marketers (76 percent) “think ad-blocking will be positive for the industry, encouraging greater creativity,” according to research by The Chartered Institute of Marketing.

On the contrary, IAB is strongly opposed to ad blocking, calling it, “a potentially existential threat to the industry.” Despite the company’s concerns, it does encourage brands to step it up in terms of customer experience.

“IAB research shows ad block use is caused by a general disdain for advertising and concern about the safety of user information,” the company explains on its website. “In our nationally representative survey, 89 percent of respondents who have installed ad-blocking technology reported using ad blockers to improve their experience. The ads deemed most intrusive are video ads that play automatically, screen takeovers, and blinking ads—all ad types that directly disrupt the consumption of content. These findings should be an alarm to everyone in media and marketing. We are mistreating our most valuable asset—our consumers. We can talk all we want about the ad-centered ‘value exchange’ between consumers and media. But until we commit to the cause of ever-improving user experiences, advertisers and media will be at risk.”

While marketers do their best to create authentic and engaging material that consumers will actually want to look at, online publishers are feeling the painful effects of ad blocking.

Ad blocking software could cost digital publishers over $27 billion by 2020, according to a report by Juniper Research. Paywalls are becoming more common, as fewer consumers agree to view ads that fund these outlets.

While 55 percent of US millennials pay for digital entertainment, only 25 percent are willing to pay for some kind of digital news service. A report by Business Insider notes that publications are questioning their pay-for-content models in order to reach this demographic.

A change, however, that might be shifting the scene in ad blocking may be looming on the horizon. According to advertising industry publication Campaign, YouTube is planning to eliminate its unskippable pre-roll 30-second ad unit by 2018.

Inside Oreo’s Global Marketing Strategy Featuring Shaq, Neymar And Christina Aguilera

When you’re a brand whose built bullions in equity by banking on the simple ritual of dunking a cookie in milk, then it’s only a must that you bring the biggest and baddest dunker of his generation to market your latest message.

Oreo has enlisted habitual backboard breaker Shaquille O’Neal to put a new spin on a timeless classic by launching the “Oreo Dunk Challenge,” a global marketing campaign that reminds consumers how delightful dunking a cookie in milk could be.

Famous faces in songstress Christina Aguilera and soccer star Neymar de Silva Santos Júnior have also been pegged to promote the innovative cross-channel campaign on mobile and social in 50 countries, as well as television advertisements and in-person activations.

“Dunking has been in my DNA for years, but it goes beyond basketball,” said O’Neal. “I’ve always loved dunking my Oreo cookies in milk—it makes me feel like a kid like no other snack or treat, which is why I was excited to join the Oreo Dunk Challenge. Being able to kick off the campaign by doing my first-ever dunk without using hands will always be a great memory for me.”

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Mondelēz International, the parent company of Oreo, also announced their partnership with Google ZOO today through Oreo Space Dunk, a mobile game and site that integrates motion-detection technology and geo-location to allow fans to virtually dunk and launch their cookies into “space” and back.

Social is at the core of the campaign, and Google ZOO and #OreoDunkSweepstakes further encourage fans to post their dairy-rattling jams to win a variety of prizes in the coming weeks.

The next-level marketing move complements an overall strategy that already featured a Snapchat lens on February 12. The Oreo Dunk Challenge will also be front and center at the NCAA Final Four Fan Fest in Phoenix next month, as well as TV takeovers with Live With Kelly, Jimmy Kimmel Live and The Chew.

From stealing the Super Bowl on social four years ago to emerging in the space of e-commerce with a holiday website that lets consumers buy limited-edition tins of fudge-covered cookies, Oreo is no stranger to digital success. In fact, Mondelēz International’s plans to grow e-commerce revenues to at least $1 billion by 2020.

Kerri McCarthy, Oreo’s senior global brand manager at Mondelēz International, the parent holder of the cookie company, joined [a]listdaily to detail how they’re reinventing a simple, century-long tradition in dunking to drive new engagement and social media conversation across the world.

What is the Oreo Dunk Challenge supposed to accomplish for the brand? Why was it critical for Oreo to dunk itself into the digital space through mobile, social and in-person activations?

The Oreo Dunk Challenge has a very simple mission—to get millions of people dunking Oreo cookies in milk as a way to reconnect with the kid inside, because there’s no more playful snacking moment than dunking an Oreo cookie in milk. Nothing will replace the joy of sitting down and dunking an actual Oreo cookie, but we pushed to bring our signature ritual to life in ways that would continue to surprise and delight fans, from in-person events and sampling to our collaboration with The ZOO at Google. A diverse set of dunks and touch points have allowed us to bring a fresh perspective to something that’s been so core to the brand for nearly 100 years. And with digital being core to how our consumers live, we knew it had to play a major role in these touch points across the campaign.

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Kerri McCarthy, Oreo’s senior global brand manager at Mondelēz International.

With the Oreo Space Dunk, why is it critical to enter the mobile market and steer consumers away a bit from TV?

Consumers today engage on multiple screens at once, so we’re less focused on steering people in a particular direction and more about engaging them where they already are—whether that’s high-profile TV, on mobile, in-store or events. Tapping into the mobile market through our collaboration with Google was a way to create a customized, digital dunking experience that brings an offline consumer behavior online in a playful way that could only be Oreo. What’s so interesting about the Oreo Space Dunk in particular is that it’s a global experience that can transcend just one market.

What is Oreo’s strategy in communicating with digital-first consumers? How do you reach them?

We want to reach consumers wherever they are spending their time—whether it’s on a social platform, a messaging app, or an e-commerce site. We always want to show up in ways that are true to the Oreo brand, so we like to be playful and try new things to reach new consumers and deepen our engagement with existing Oreo fans. A key piece to fostering that engagement is creating something that’s personalized and custom, which we’ve achieved through the Oreo Space Dunk in collaboration with Google, by integrating motion detection technology and the user’s location.

What is the integrated social media strategy for #OreoDunkSweepstakes? What platforms do you plan on testing? What can fans expect?

#OreoDunkSweepstakes is the specific promotional hashtag for the United States; the entry specifics and mechanisms for the Oreo Dunk Challenge promotion vary from market to market. Our major platforms across the campaign are Facebook, YouTube, Twitter and Instagram, with unique assets for each. Beyond entering for a chance to win on their local social platforms, fans can expect to see a series of Oreo Dunk challenges through ongoing social content designed to inspire new dunks with Oreo cookies. This content will feature dunks from the Oreo brand as well as a variety of dunks from local influencers and our three global celebrity dunkers.

Why was it imperative to take Oreo’s marketing to a global level this time? What are the different intricacies you’ve encountered compared to a domestic roll-out?

Oreo is a truly global brand, sold in more than 100 countries around the world. For the past few years, we have introduced a global campaign in Q1 as a way to kick-off the year with momentum and continue to build our global ‘Wonderfilled’ creative platform. The key to ensuring a campaign is successful on a global scale is to come up with a creative idea that resonates with consumers across the globe, but also has built-in flex that allow the individual countries to cater to local nuances. Our local marketers will leverage global creative assets, such as the celebrity-studded TV and digital content and the Oreo Space Dunk partnership with Google, and then layer on a country-led activation—like content from local influencers and retailer-specific partnerships—to strengthen resonance with local Oreo fans. We’re proud of how we’ve taken such an iconic ritual that’s been a part of the Oreo brand DNA, and used that as a springboard to engage fans in markets around the world.

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How was the activation received with Shaq at Chelsea Market in New York City, the location of the original Nabisco bakery where the first Oreo was made?

The Oreo event at Chelsea Market was the North America launch of the campaign. We knew we wanted to show consumers how fun dunking an Oreo cookie in milk is, and we knew we wanted to do it in an unexpected way. To do so, we used brain-sensing headbands and custom software to track the concentration levels of participants—when their concentration reached a certain threshold they were able to move an Oreo cookie toward a glass of milk without any hands. Fans had a blast at the event, which was held at the birthplace of the Oreo cookie, and some got to go head-to-head with Shaq as an added layer of excitement. We had over 1,000 people do the hands-free Oreo Cookie Dunk throughout just one day, and it was a great way to kick off the campaign by putting a new spin on the Oreo dunk ritual.

What are the insights and data that influence your marketing strategy? Is there a new product or service that you think will influence decisions?

It’s so important for any brand to be tapped in to what is happening in the market. We research extensively to understand consumer motivations, past purchasing behavior, future purchase considerations and media consumption patterns to inform new product development and overall messaging strategy. We also use marketing performance metrics, such as channel ROI and platform-specific KPIs, to optimize and prioritize our production and media investments.

What is on top of your marketing “hot list” this year? Are there any emerging trends that you’re looking at in order to explore and innovate the Oreo brand?

We consistently aim to reach consumers where they are increasingly spending their time and as a result, we’ll continue to invest in digital video as video consumption continues to rise. E-commerce also continues to be a priority for the Oreo brand and as such, we are working with our partners on e-commerce-specific offerings and content partnerships. From a global perspective, we have some markets exploring things such as live video streaming and chat bots, and others who are increasing the use of data-driven audience targeting and testing capabilities to get the right message to the right consumers within the right context. Overall, we are always looking for new, efficient and effective ways to reach consumers and will continue to test and learn as new offerings come onto the market.

New Balance Brings Values-Based Marketing

What is the message you would write to yourself? What’s message you’d write to yourself?

New Balance is encouraging consumers to channel their inner athlete and tap into their competitive drives with “Letters to My Future Self,” an inspiration-driven campaign that aims at redefining personal ambitions, motivations and sense of purpose through commitment to fitness and healthy living.

Through long-and-short-form films, and of course written notes, the digital-centered campaign captures the goals and messages of athletes that focus on who they want to be in the future. It’s complemented with a multi-dimensional experience on the Boston-based athletic apparel vendor’s brand website, as well as with a content partnership with The Players’ Tribune.

The time capsule campaign, which kicked off in January, highlights the aspirational stories of Houston Astros all star second baseman José Altuve, fast-food-cook-turned-Olympic-finalist Boris Berian, X Games gold medalist Alexis Sablone, tennis champion Milos Raonic as well as runners Ciara Mageean and Tom Barr.

New Balance is championing consumers to overcome obstacles, too, by encouraging an initiative where they can pen their own letter to their future selves. The brand will send the letter back to each author in one year after their submission through a unique capsule experience.

Cause marketing is a trend brands are increasingly employing because consumers value brands, retailers and even employers that believe in and enable giving. The campaign also comes as a timely one for New Balance, who suffered severe social criticism in November after supporting President Donald Trump.

Steven Ruhl, head of global brand marketing at New Balance, joined [a]listdaily to shed more light on the transformative experience that aims at advancing the athlete’s journey and outlook for the future.

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Why did you decide to take the route of inspirational marketing for “Letters to My Future Self?” What kind of uplift does a values-based marketing campaign have with consumers?

New Balance has always looked at how to help our consumers evolve and improve—both in athletics, and in life. It’s important for us to engage with young athletes around the world and we know that great stories that inspire and entertain can deliver stronger brand connections in marketing. These stories are also meant to deliver value for the consumer by posing questions not just about sport, but about life, and asking viewers ‘what would you tell your future self?’ We believe that if we can make you think about life, your best self, and the future you want to achieve, then we will have succeeded. We hope that consumers see this campaign also as a metaphor for our brand and its core values and how it reflects our decision to work with athletes who have strong character, integrity and intention.

How will you be marketing the multi-dimensional “What would you tell yourself?” experience on social with #MyFutureSelf? Will you be testing any emerging platforms?

We are bringing this to life across paid, owned and earned channels. Aside from strong paid distribution across video platforms like YouTube, we’ll create surround sound digital content on our social handles, and drive to an experience page where consumers can watch more, read more, and learn more about each athlete story. On our experience page, consumers can also submit their letter to their ‘future self,’ and we’ll send it back to them, in about one year. Another strong component of this campaign was the number of athletes on roster who’ve participated by sharing their ‘note to future self,’ with their followers, and encourage sharing on social media. The #MyFutureSelf hashtag was used more than 6,000 times in just the first week and a half, thanks in large part to all of our athletes and ambassadors around the world, who shared deeply personal and motivating thoughts for their followers.

How is New Balance’s marketing a reflection of its our values?

We created our ‘Letters to My Future Self’ campaign to showcase the true individuality, grit and unparalleled persona of our world class athletes. Through their own words, reflections and inner strength, they inspire athletes everywhere to unrelentingly pursue the best version of their future self.

Why is it important for New Balance to partner with a media company like The Players’ Tribune and use them as a distribution platform?

It was exciting to have our athletes tell an authentic story, through letters written to their future selves published on The Players’ Tribune, the new athlete-driven content platform. New Balance prides itself on being an authentic athletic brand, and this was an exciting collaboration for us.

What did you apply from your #GreaterThanTheWin campaign learnings from last year? Do motivation-and-caused-based campaigns work well with millennials?

We saw a significant increase for New Balance brand consideration in key markets, after consumers experienced the content. This was big validation in our approach to deeper human-inspired and unique storytelling, with focused distribution across digital video platforms.

How have consumers responded to previous branded content featuring long-and-short-form films? Do you complement them with an influencer marketing strategy for amplification?

We’ve received a great response when we provide long-and-short-form content that entertains and inspires consumers—but also talks to our shared values, and how we’re different in the marketplace. We recognize that our athletes and ambassadors are hugely influential in helping us amplify our brand message.

Follow Manouk Akopyan on Twitter @Manouk_Akopyan

 

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