The route to greater Brand Engagement - Engine Creative€¦ · beyond tradigital Consumers of all ages and backgrounds are becoming increasingly Digital First (tablet ownership is

The route to greater Brand Engagement

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2The route to greater Brand Engagement

Executive summary

Setting the scene

• Marketers waste money on digital

• Clicks do not equal cash

• Brands that increase engagement

get all the rewards

• Are tradigital channels a thing of the past?

• The business of Brand Engagement

Understanding Brand Engagement

• How can you measure your

Brand Engagement?

• Emotion = Engagement

The Brand Engagement toolkit

• 3 key factors that define Brand Engagement

• 3 ways of measuring Brand Engagement

• 3 steps to achieve greater Brand Engagement

• The Brand Engagement Pyramid

Achieving greater Brand Engagement

• Mobile users are the most engaged

• 1. Mobile growth

• 2. Mobile crutch

• The perfect Mobile storm

Brand Engagement and the New Reality

• New opportunities, old mistakes

• Welcome to the New Reality

• Augmented Reality is the future

of Brand Engagement

• Augmented engagement

• An Augmented future where Brand

Engagement is king

Conclusion

• Key take-aways

• References

• About Engine Creative

White Paper contents



Brands are struggling to

grab the attention of their

customers despite the

overwhelming number of

digital channels available

to them.

Marketers continue to invest

heavily in digital channels

that are outdated and

increasingly ineffective,

driven by industry pressures

to deliver greater volumes

of interactions without fully

understanding the impact it

has on brand value.

Only by focusing on

delivering greater Brand

Engagement rather than

simply greater volume of

interactions, can marketers

begin to influence business

outcomes and transform the

value of their brands.

In this White Paper, we

will take you through the

research that underpins

the need for marketers to

shift to achieving greater

Brand Engagement.

The future of Brand Engagement We will provide clarity

on how to understand

and measure Brand

Engagement and provide

details on the one channel

that is set to define Brand

Engagement in the future.

Executive summary


Setting the scene


Marketers waste money on digital

Recent research by Lumen

has highlighted that only

9% of digital advertising

is viewed for more than

a second1 and, with

figures showing that an

eye-watering £8.61 billion

was spent on UK digital

advertising in 20152, it’s

clear that marketers are

wasting a high percentage

of advertiser’s money.

Only 9%

of digital is viewed for more than a second

£8.61bnwas spent on

UK digital advertising

in 2015


Clicks do not equal cash

If we dig a little deeper into

the research from Lumen,

we can see that only 4% of

digital advertising actually

receives more than 2

seconds of attention.

This, by anyone’s standard,

is a poor return on

investment for advertisers

looking to connect with

an increasingly active and

Digital First audience.

Let’s move beyond tradigital Consumers of all ages and

backgrounds are becoming

increasingly Digital First

(tablet ownership is

actually higher amongst

the over 55s than the

under 55s3) and this

presents new opportunities

(and challenges) for

marketers managing

growing digital budgets.

When we consider that

defining a Digital First

audience has now moved

beyond just Millennials

who have grown up in

a connected world4, the

situation for marketers is

crystal clear - it’s time to

move beyond ‘tradigital’

(traditional digital) channels

to remain relevant.

It’s time for marketers to pivot Whilst digital advertising is

by no means the de facto

measurement of Brand

Engagement for digital-first

audiences, it does clearly

demonstrate the need for

marketers to rethink and

pivot their brand strategy

to channels and content

types which deliver greater

Brand Engagement.


Brands that increase engagement get all the rewards

So, why is brand

engagement so

important?

Put simply, according

to research by Gallup5,

customer and Brand

Engagement is the

definitive forecaster of

business growth:

The Gallup research

goes further, identifying

industries where greater

customer engagement

has resulted in conclusive

evidence of the key role that

Brand Engagement has in

delivering true value

to business:

• Retail banking customers who are fully engaged bring 37% more annual revenue to their primary bank than actively disengaged customers.

• Consumer electronics shoppers who are fully engaged spend 29% more per shopping trip than actively disengaged customers.

• Hotel guests who are fully engaged spend 46% more per year than actively disengaged guests.

• Companies that successfully engage their B2B customers realise 63% lower customer attrition, 55% higher share of wallet, and 50% higher productivity.

Customers who are fully engaged represent a 23% premium in terms of share of wallet, profitability, revenue, and relationship growth over the average customer.

”

““

7

If we then reflect back

on the lack of engagement

currently being achieved

across tradigital channels,

then the need for

change becomes even

more important.

Brands that manage

to go beyond simply

a transactional interaction

with their audiences

(i.e. clicking on a banner

ad) will always out-perform

less engaging brands.

The most successful

brands go above and

beyond tradigital channels

to make meaningful

connections with their

customers and

rightly so.

Levels of engagement are plummeting Digital advertising is over

20 years old6 and is still,

essentially, the same.

The ability to target

more effectively (i.e.

programmatic) and the

explosion of formats and

channels have certainly

evolved and yet the

level of engagement has

plummeted as highlighted

by the Lumen research.


Are tradigital channels a thing of the past?

20071997 2017

Digital advertising is over 20 years old and yet remains the

same

Banner AdBanner Ad Banner Ad Banner AdBanner Ad


The business of Brand Engagement

Brand Engagement

needs to go at the top of

marketers objectives if they

are to achieve demanding

growth targets and it is

no coincidence that a

growing breed of CGOs

(Chief Growth Officer) have

marketing backgrounds7.

Marketer’s route to the top According to the research

by Russell Reynolds

Associates’, senior

marketers that can link

brand engagement to

business growth are the

CEOs of the future, making

the ability to improve

Brand Engagement a

prerequisite for professional

advancement.

CEO

CGO

CMO

Marketer


Understanding Brand Engagement


How can you measure your Brand Engagement?

So, if we have established

the importance of achieving

greater Brand Engagement

for marketers, let’s explore

how to implement actions

which will have the

biggest impact.

Understanding Brand Engagement To understand how to

measure and improve

Brand Engagement we

first need to define exactly

what Brand Engagement

is and, unsurprisingly, this

is very much something

which is bespoke to each

individual brand. Despite

the complexities involved

in measuring Brand

Engagement, one factor

which remains a key

thread is Emotion.


Emotion = Engagement

Get your brand out of the dead zone You only need take a walk into busy public places (shopping centres, train stations, etc) to understand the connection of Emotion with engagement; you will see a particular group of Digital Firsts with their heads bowed, looking at their mobile screens with emotionless expressions. They are swiping to delete, Liking and speed skimming content in a ritualistic manner based on habit and FOMO (fear of missing out).

These ‘Smartphone Zombies’8 (AKA ‘smombies’ or ‘petextrians’, you get the idea) contrast sharply with the all-encompassing engagement that a truly emotional digital experience will deliver.

Driven by emotion, brought to life by technology From the feeling that you

get when you’re Skyping

with your loved ones to

the sense of wonder that

the launch of the first

iPhone achieved almost

a decade ago, the most

engaging digital experiences

are always driven by

emotion and brought

to life by technology.

By understanding the link

between Emotion and digital

engagement, we can then

start breaking down the

key factors that make up

Brand Engagement, how to

measure brand engagement

and the key questions that

every marketer should be

asking when undertaking

any activity to achieve

greater Brand Engagement.


The Brand Engagement toolkit


3 key factors that define Brand Engagement

1. Relevancy Customers engage with

different brands at different

points in their life depending

on their situation and so

Brand Engagement is

often linked closely with

individual lifestyle choices.

Taking this to a more

granular level, customers

are even more engaged

when their intent and

context are in perfect

sync with the brand

(i.e. right place, right

time, right product).

2. Loyalty The most engaged

customers will shop more

often, buy more and are

less price sensitive -

quite the opposite, they

will pay a premium and

appreciate the value that

the brand offers them.

This typically equates

to spending much more

of their time engaging

with the brand through

individual experiences (i.e.

shopping for a specific

product) as well as

over time by remaining

loyal to one brand.

3. Advocacy Customers who love a

particular brand will be the

ultimate brand advocate.

These true believers are

so engaged that they

will tell everyone they

know and are much more

willing to recommend

or share their brand

experiences with others.


3 key factors that define Brand Engagement

Loyalty Advocacy

Relevancy

Emotion


3 ways of measuring Brand Engagement

1. Context Rather than measuring

quantity (i.e. clicks, traffic)

it is far more revealing to

measure the context in

which the interaction has

occurred to gauge the level

of Brand Engagement.

As an example,

understanding that a

customer has found the

product they want in a store

that’s local to them when

they are out and about at

the weekend, says much

more about their intent to

engage with the brand than

if the interaction occurred

whilst they were at work.

2. Dwell time There’s a clear link between

the time that a customer

spends on a brand

interaction with their level

of Brand Engagement

as already highlighted

with only 9% of digital

advertising being viewed

for more than a second.

Marketers should strive for

dwell times measured in

minutes and not seconds

if they are to achieve

Brand Engagement

with real impact.

3. Active shares True brand advocates

don’t simply retweet and

Like existing content but

become active sharers

and content creators.

This type of activity involves

a greater level of effort

and, as a result, provides

greater personal reward

and identifies them as truly

engaged with the brand.


3 ways of measuring Brand Engagement

Emotion

Context

Dwell Time Active Shares


3 steps to achieve greater Brand Engagement

How engaged are your customers with your brand?

How are you measuring Brand Engagement (context, dwell times, active shares, etc)?

What are your Brand Engagement objectives?

How do you improve the Relevancy, Loyalty and Advocacy of your brand marketing?

How do you bring your brand to life through the right content and channel mix?

1. 2. 3. Undertake a Brand Engagement audit

Set BrandEngagementobjectives

Implement a BrandEngagementstrategy


The Brand Engagement Pyramid

The Brand Engagement

Pyramid on the following

page illustrates all of the

research findings outlined

so far.

It highlights that the key

link between marketing

activity (the content and

channels mix) and improved

brand value is the one

thing that marketers and

brand owners either don’t

acknowledge or rarely

fully understand -

Brand Engagement.

Transforming business outcomes through greater Brand Engagement By referencing the Brand

Engagement Pyramid

in brand and marketing

planning, marketers will

be able to transform the

business outcomes of their

efforts and stop wasting

money on under-performing

tradigital channels.

They will be able to take

ownership over their

brand and make decisions

based on delivering an

emotional connection with

their customers rather

than playing a numbers

game with the misguided

assumption that it is only

the volume of interactions

that matter.

In the final section of this

white paper we consider the

key channel that will have

the biggest impact

on achieving greater

Brand Engagement.


The Brand Engagement Pyramid


Achieving greater Brand Engagement


Mobile users are the most engaged

The facts are clear,

the route to greater

Brand Engagement is

undeniably Mobile.

To better understand

exactly how Mobile has

become such a marketing

heavyweight in such a short

period of time, it is useful

to understand two major

factors in more detail.


If modern marketers don’t

already have a Mobile

strategy in place then

a) they are probably living

on a different planet or

b) they are ‘currently looking

for new opportunities’.

The coverage of Mobile

in the UK is such that it

is driving transformation

in every walk of life and,

as Google put it:

• Smartphone penetration

amongst 18-44 year olds

in the UK is at 91 per cent

- equivalent to 21 million

people.10

• Collectively, UK citizens

look at their smartphones

over a billion times a day.10


1. Mobile growth

1bn mobile

interactions in the UK per day

Because of Mobile, marketers now have the opportunity to reach more consumers than ever before and engage them throughout their daily lives.9

23

Crucially for Brand

Engagement, the emotional

impact of Mobile in our

day to day lives has

been profound.

It is not overstating the point

to say that the explosion of

Mobile devices is the single

technology that has had

the biggest impact on our

emotional connection to the

world we live in.

• 87% of millennials always

have their smartphones

at their side, day and night,

while 80% say that the

first thing they do in the

morning is reach for their

smartphone.4

2. Mobile crutch

I pretty much call my phone my lifeline. I use it all day, every day. If I ever leave home without it, I feel naked.9

Mary Kathryn L, 47

30% of smartphone users get ‘anxious’ when

they don’t have their phone with them 9

24

The rapid growth of Mobile

penetration combined with

our growing emotional

reliance on Mobile in every

part of our lives creates

the perfect storm for

Brand Engagement.

If we take into account

the 3 key factors that

define Brand Engagement

- Relevancy, Loyalty,

Advocacy - then nothing

beats Mobile for being able

to deliver on all counts.

Half a billion downloads and counting! And no Mobile experience,

it seems, beats a location-

based augmented reality

game where users can

catch Pokemon characters

in the real world.

With more than half a

billion downloads15 and

numerous stories of users

risking life and limb to catch

their favourite characters,

Pokemon GO and

augmented reality has taken

Brand Engagement

to a new level.

The research is clear -

there is no better starting

point for improving

Brand Engagement than

on Mobile, and Mobile

experiences that seamlessly

blend the physical and

digital worlds have the

potential to deliver Brand

Engagement to the max.

The perfect Mobile storm

Brand Engagement opportunities

Mobile growth

Mobile crutch


Brand Engagement and the New Reality


Whilst there are obvious

opportunities for improving

Brand Engagement on

Mobile, marketers would

be ill-advised to simply

throw all of their resources

into the 20 year old digital

advertising model peddled

by many media agencies.

According to research by

IAB, Mobile accounted

for the majority (78%) of

digital ad spend growth in

the UK in 2015.2 However,

Meetrics research indicates

that UK marketers will

waste up to £7.2bn on

unseen digital ads in 20161,

suggesting that marketers

are simply shifting the

focus of their marketing

spend to Mobile rather

than fully understanding

how they can improve the

impact of their investment.

Get set for the New Reality This approach may have

some short term impact

on Brand Engagement

although, as the Meetrics

research suggests,

customers very quickly

become immune to new

advertising models,

especially if they are

simply feeding them the

same messages they

have been used to on


As Mobile technology

evolves, marketers need to

identify new opportunities

and, specifically, look to

prepare their brands for

an exciting New Reality.

New opportunities, old mistakes

UK marketers

will waste up to

£7.2bn on unseen digital ads

in 2016


Welcome to the New Reality

Mobile is entering a New

Reality where our digital and

physical worlds converge

to create deeper and more

immersive experiences

that connect emotionally.

Augmented Reality (AR),

Virtual Reality (VR) and

Mixed Reality (MR) are

attracting major investment

from Venture Capitalists

with $1.7 billion invested in

the 12 months leading to

March 201611, with two AR/

VR start-ups (Magic Leap

and Oculus) taking the lion’s

share of the headlines.

It’s time to bet big on AR If we dig even deeper into

the emerging New Reality

market, it is estimated that

AR/VR will be worth $150

billion in four years12.

In terms of marketers

backing a winning horse

then the smart money

is most definitely on AR

which, according to Digi-

Capital, will account for

80% of the market share

due to the seemingly

endless use cases that AR

offers compared to VR.

140

120

100

80

60

40

20

0

AR Revenue Forecast ($B)

2016 F 2017 F 2018 F 2019 F 2020 F

The AR market

will be worth

$120bn by 2020


Augmented Reality is the future of Brand Engagement

Augmented Reality

provides brands with an

unrivalled route to connect

with Mobile customers

through greater relevancy

and deeper engagement

by seamlessly linking the

physical and digital worlds.

The most obvious impact

of this greater Brand

Engagement through

AR can be seen in the

massively increased

dwell times which

are through the roof

compared with traditional

(i.e. press, outdoor) and


AR delivers super charged dwell times According to Blippar’s Lisa

Hu, Blippar campaigns

have an average dwell

time of 75 seconds13, a

number that is 2.5 times the

average of radio or TV ads.

Leading Augmented Reality

experts Engine Creative,

have gone even further

with AR campaigns on their

award winning platform

Reality Engine achieving

average dwell times of

over 300 seconds14.

Global brands including

Tesco, Lacoste, Cosnova

and Bauer have all

achieved unrivalled Brand

Engagement by harnessing

AR technology to connect

with Mobile users in new

ways that blur the line

between our physical

and digital worlds.

AR campaigns

achieve average dwell times of

over 300 seconds

29

Outdoor

Press

Radio

TV

AR

Sources: ExterionMedia (TV, Radio, Press, Outdoor), Reality Engine (AR)

5 sec

30 sec

17 sec

30 sec


2016 has also been the

year of Pokemon GO,

the Augmented Reality

game which has been

downloaded more than

half a billion times and has

seen more than double the

industry average retention

rate with 7 out of 10 people

who downloaded the app

returning the next day.15

Pokemon GO has blown all of the old engagement metrics out of the water This is engagement on a

scale never before seen in

the marketing world and it is

no coincidence that it ticks

all of the boxes that define

Brand Engagement:

• Relevancy (users are

able to explore the world

around them),

• Loyalty (the gaming

mechanics encourage

repeat interaction),

• Advocacy (the magic of

seeing your favourite

characters appear in the

real world creates unique

social currency for users).

Augmented engagement

x2 retention

rate


An Augmented future where Brand Engagement is king

The New Reality will be

defined by marketers

with a focus on Brand

Engagement, and

Augmented Reality is set

to be the defining channel

for these innovators.

Augmented Reality

experiences have the ability

to elicit a genuine sense

of wonder in the same

way that the launch of

the first iPhone achieved

almost a decade ago

and it is no surprise that

Apple’s CEO, Tim Cook,

is betting heavily on an

Augmented future where

Brand Engagement is king:

There’s no substitute for human contact, and so you want the technology to encourage that. We are high on AR for the long run.16


Conclusion


Key take-aways

As more and more

budget is being spent

(and wasted) on outdated

digital channels, marketers

are struggling to build

meaningful interactions with

their customers.

Improving Brand

Engagement is key to

achieving these meaningful

interactions which are

proven to deliver brand

value and, in turn,

business growth.

By understanding how to

measure Brand Engagement

more effectively, marketers

will be able to transform the

business outcomes of their

activity by refocusing their

efforts on achieving:

Relevancy

Loyalty

Advocacy

Using the Brand

Engagement Pyramid,

marketers will then be able

to take greater ownership

over their brand and

make decisions based on

delivering an emotional

connection with their

customers rather than just

focusing on the volume of

interactions.

Understanding and

adopting this model on

Mobile will result in the

biggest impact, with

Augmented Reality set to

be the defining channel in

a New Reality where Brand

Engagement is king.


References

1. Marketing Week (2016) Marketers continue to ‘waste money’ as only 9% of digital ads are viewed for more than a second https://www.marketingweek.com/2016/07/26/marketers-continue-to-waste-money-as-only-9-of-digital-ads-are-viewed-for-

more-than-a-second/

2. Internet Advertising Bureau UK (2016) Digital adspend grows at fastest rate for seven years https://www.iabuk.net/about/press/archive/digital-adspend-grows-at-fastest-rate-for-seven-years

3. Consumer Insights Panel Turning silver into gold. How can businesses meet the needs of the increasingly lucrative mature market? http://consumerinsightspanel.org/assets/docs/Turning_Silver_Into_Gold_Report_CIP.pdf

4. Zogby Analytics (2014) Millennials Smartphone Report

https://drive.google.com/file/d/0B9W_ZHUehuLcUUhnSVZsSE5VT2M/view

5. Gallup (2016) Turning Customers Into True Believers - Customer Engagement http://www.gallup.com/services/169331/customer-engagement.aspx

6. Adweek (2014) 20 Years of Digital Advertising: From Banner Ads to Sponsored Snapchats http://www.adweek.com/news/technology/heres-timeline-showing-20-years-after-banner-ad-161000

7. Campaign (2016) Not just a glorified CMO: charting the rise of the chief growth officer http://www.campaignlive.co.uk/article/not-just-glorified-cmo-charting-rise-chief-growth-officer/1401123

8. CNN (2016) Smartphone zombies have taken over Seoul http://edition.cnn.com/2016/08/14/south-korea-smartphone-zombie/

9. Google Micro-Moments: Your Guide to Winning the Shift to Mobile https://think.storage.googleapis.com/images/micromoments-guide-to-winning-shift-to-mobile-download.pdf


References

10. Deloitte (2016) There’s no place like phone. Consumer usage patterns in the era of peak smartphone. Global Mobile Consumer Survey 2016: UK Cut https://www.deloitte.co.uk/mobileuk/assets/pdf/Deloitte-Mobile-Consumer-2016-There-is-no-place-like-phone.pdf

11. Tech Crunch (2016) The reality of augmented and virtual reality venture capital https://techcrunch.com/2016/05/24/the-reality-of-augmented-and-virtual-reality-venture-capital/

12. Digi-Capital (2015) Augmented/Virtual Reality to hit $150 billion disrupting mobile by 2020 http://www.digi-capital.com/news/2015/04/augmentedvirtual-reality-to-hit-150-billion-disrupting-mobile-by-2020/#.

WDcGLKKLRN1

13. Chief Marketer (2016) Should you pay attention to augmented reality marketing? http://www.chiefmarketer.com/should-you-pay-attention-to-augmented-reality-marketing/

14. Engine Creative (2015) Office shoes embed augmented reality experiences into year long media campaign http://www.enginecreative.co.uk/blog/office-shoes-embed-augmented-reality-experiences-into-year-long-media-campaign

15. Tech Crunch (2016) Pokémon Go’s retention rates, average revenue per user are double the industry average https://techcrunch.com/2016/07/15/pokemon-gos-retention-rates-average-revenue-per-user-are-double-the-industry-average/

16. 9 to 5 Mac (2016) Tim Cook again praises augmented reality, says there’s ‘no substitute for human contact’ https://9to5mac.com/2016/10/13/tim-cook-augmented-reality-interview/


About Engine Creative

Engine Creative is

a creative service

and digital products

agency with a thirst

for innovation.

We are passionate about

bringing brands to life

online, on mobile devices

and through augmented

and virtual experiences.

We work in partnership

with our clients to help

them creatively connect

with their consumers on any

size screen, in any location.

By doing so, we

deliver unrivalled brand

engagement for our clients.

We are currently working

with brands including

Barclaycard, BiC, Camelot,

Facebook and Travis

Perkins and are always

looking to break into new

industries and work with

clients who appreciate

the value of digital

innovation and creativity

in their business.


Let us bring your brand to life

+44 (0)1604 453 177

[email protected]

www.EngineCreative.co.uk

The Church Rooms

Agnes Road

Northampton NN2 6EU

Documents

The route to greater Brand Engagement - Engine Creative€¦ · beyond tradigital Consumers of all ages and backgrounds are becoming increasingly Digital First (tablet ownership is