Sustainable Marketing: Is it a Farce?
Today at Trusted Conf. we’re talking about Sustainable Marketing and whether it’s legit or a farce, with Justine Smith.
View the slides below to get the full insights into sustainable marketing:
Sustainable Marketing: Is it a Farce?
Before we begin, let’s learn a little about Justine,
- TAIWAN BORN → VEGAS RAISED
- IN MARKETING SINCE 2016
- STARTED IN BYRON → NOW IN TAIPEI
- FUN FACTS…
- What is sustainability?
- What does that mean to marketers?
- How to be an agency of change and do better
What is Sustainability?
- Environmental sustainability is the ability to maintain rates of renewable resource harvest, pollution creation, and non-renewable resource depletion that can be continued indefinitely.
- Economic sustainability is the ability to support a defined level of economic production indefinitely.
- Social sustainability is the ability of a social system, such as a country, to function at a defined level of social well being indefinitely.
Sustainability is the ability to maintain a defined behavior indefinitely.
What Does That Mean to Marketing?
Current state of online advertising
Source: Rakuten Marketing Insights
*Research taken from 2,500 global consumers in 2017
- Sustainability is becoming more and more associated with minimalism, lowering consumption levels, and reducing environmental impact.
- This is bleeding into marketing as these consumers are supporting more and more brands that reduce their carbon footprints, embrace transparency with consumers, and minimize their inundation of non-relevant/obnoxious ads and emails.
- Consumers are disenfranchised with digital ads as most of these unsustainable practices focus on immediate results and ROI.
- Once a traditional media campaign is over, often both the user and company get no additional value from it. Results are tied to short-term dollar investment.
What Are the Effects?
Consumers Are Demanding More Control
With Off-Facebook Activity, you can see and control the data that other apps and websites share with Facebook. You can:
- See a summary of the information other apps and websites have sent Facebook through our online business tools, like Facebook Pixel or Facebook Login;
- Disconnect this information from your account if you want to; and
- Choose to disconnect future off-Facebook activity from your account. You can do this for all of your off-Facebook activity, or just for specific apps and websites.
What Happens When You Clear Your Off-Facebook Activity
- If you clear your off-Facebook activity, we’ll remove your identifying information from the data that apps and websites choose to send us. We won’t know which websites you visited or what you did there, and we won’t use any of the data you disconnect to target ads to you on Facebook, Instagram or Messenger. We expect this could have some impact on our business, but we believe giving people control over their data is more important.
Starting only in Ireland, Spain, and S Korea but rolling out to rest of the world in coming months.
Devices Using Adblock Software
Overall Adblock penetration per online capita, December 2016:
- United States: 18%
- China: 13%
- United Kingdom: 16%
- Germany: 29%
- Australia: 20%
- Canada: 25%
- France: 11%
- Italy: 17%
- Indonesia: 58%
- India: 28%
- Adblocking is estimated to have cost the industry more than $20 billion in ad revenue.
- 32% of survey respondents said they use an ad blocker, and 46% proactively opt-out of ads in other ways.
- Because of a bad ad experience:
- 45% of consumers will abandon a site and 28% will avoid the site altogether.
- 26% will clear their cookies to stop receiving ads from a brand, and 19% will avoid brands they associate with bad advertising practices. *Adobe, PageFair report, 2015
- Also, lead to regulation changes such as GDPR and the California Consumer Privacy Act
- We need to shift and focus on marketing efforts that have a sustained impact on a company’s results
- To a system and processes that permit continuous improvement by maximizing on existing assets. – Adviso.ca
Not So Sustainable Marketing Methods
- Repeated discounts/offers – shows consumers there’s a discrepancy of value as users don’t value it enough to pay full price.
- Click-bait – misleading headline just to get a user to a site just rather than providing any real value.
- Engagement-bait – Mostly dominated by FB using “share/like/comment to win” type of marketing to take advantage of the NewsFeed algorithm to artificially inflate engagement. FB has started demoting this kind of “spammy” content since 2017.
- Hidden terms and conditions – relying on hiding information in the copy or deliberately misleading people to make the sale.
- Over-communication – when you provide your email in exchange for a “free download” and are then inundated with multiple emails a day trying to sell you something.
- Creepy retargeting – respect the balance between reminding a consumer of something they left in the shopping cart vs spamming them with multiple ads across multiple platforms with their name and birthday on it (exaggerated but use with a measured restraint).
What Marketers Should Focus On More
- Efficient user journey without tarnishing the relationship between user and brand. An efficient user journey means removing pollution of non-relevant ads
- Consider all touchpoints affecting the consumer, environment, and community. Building a campaign must consider every touchpoint and how it affects the consumer, the environment and the community (especially the community built around the brand).
- Balanced allocation of media budget. Media spend is important, but under a sustainable marketing philosophy, if a portion of the media budget is allocated towards sustainable assets such as evergreen branded content that adds value to the user long after the campaigns are over, brands won’t come out empty-handed.
- Focus on long-term ROI. The market is increasingly favoring marketing practices that focus on long-term ROI of a customer that loves the brand and products vs short term ROI of a sale or “hit”.
Corporate Social Responsibility Also Plays a Part
- 55% of global consumers are willing to pay extra for products and services from companies committed to positive social and environmental impact up 10% from 2011
- Asia-Pacific region exceeds the global average with 64% and up 9% from 2011
- 1/3 rd of consumers (33%) are now choosing to buy from brands they believe are doing social or environmental good. – Unilever International Study 2016
- The survey of 6,000 consumers in 11 countries across North America, Europe and Asia, results of which were previewed at the American Chemistry Council (ACC) Annual Meeting today, found that while consumers remain primarily focused on quality and price, 83% believe it’s important or extremely important for companies to design products that are meant to be reused or recycled. Nearly three-quarters (72%) of respondents said they’re currently buying more environmentally friendly products than they were five years ago, and 81% said they expect to buy more over the next five years. – Accenture
Putting Sustainable Marketing into Practice
- Inbound marketing
- More data (for good!), less marketing
- Responsible data sourcing
- Content marketing has lower up-front costs & deeper long-term benefits than paid search
- Content marketing costs 62% less than outbound marketing & generates 3x as many leads
- In 1984, a person saw an average 2,000 ads/day. By 2014, they saw around 5,000
- Small businesses with blogs get 126% more lead growth than those without
- Content marketing rakes in conversion rates 6x higher than other methods
- Websites with blog content have 434% more search engine-indexed pages than those that don’t publish
Source: Content Marketing Institute
With a content strategy, the average cost per qualified visit diminishes significantly over time.
Use Data to Market Less
“Retargeting is rampant in the B-to-C space, and 77 per cent of consumers feel they see too many retargeted ads from the same retailer… Even worse, 57 per cent say those ads had no influence on their buying decision.” – Nanigans
- Marketing automation
- Acquisition focused marketing
- Sustainable marketing, in practice, is an exercise in patience and searching for more than a single data signal before interacting with a potential new customer.
- Marketers preach have the “right message, right time, right place” but are lazy when it comes to actually thinking about what message is relevant to different audiences and times.
- Rather than chasing a prospect with a retargeting campaign or because they signed up with their email, marketers need to consider more signals before triggering an email or sales call.
- Segment your leads with detailed audience profiles and score them using 1st and 3rd party data sources (responsibly). Use intent and interest signals to further segment prospects. This improves not only the performance of marketing campaigns but also consumer attention and trust of the brand
- Campaigns should focus on acquisition over reach or impression to actually focus on the right kind of customers and building long term relationships.
Responsible Data Sourcing
Sustainable practices are becoming more and more prevalent for brands.
- Tiffany’s ensures sustainable practices through a vertical supply chain.
- Patagonia’s sustainability practices are widely celebrated for making less product, ensuring their manufacturing processes are environmentally responsible, and donating tax cuts to environmental groups.
- REI closes their doors on Black Friday 4 years in a row – paying employees to get outdoors and not accepting e-commerce sales despite it being one of the top 5 retail days for the company historically.
- As digital marketers, we can do the same by embracing and exceeding data collection, consent, and usage standards that have quickly become a gray zone amongst most data consumers and vendors.
- Irresponsible usage of data erodes trust and leads to pushback (ad blockers) to the point where the opportunity is gone. We must question and scrutinize the various data sources and always ensure data has been collected with explicit consent.
- Senior leadership buy-in helps inspire other employees to come up with ideas of their own.
- Champion ideas from the top so culture permeates throughout the company.
- Adopting sustainable practices becomes easier over time.
- Put humans at the center of marketing strategy, providing value for both them and the company.
- Focus on marketing efforts and assets that build long term ROI.
- Actually care about the business and client.
- Respect collection, consumption, and usage of data and use that knowledge for good.