Monthly Archives

April 2022

The Misinformation War

By | Featured, What's Hot

Some things pale into insignificance during events as devastating as the Ukraine conflict. Plenty of companies have pulled or suspended their business operations from Russia in the past month, many out of solidarity with Ukraine. This includes media companies – but not just for economic reasons.

Social media platforms are an increasingly key source of information to Ukrainians, Russians and the rest of the world when trust in state-controlled media becomes  questionable. But they are also powerful tools of misinformation and conspiracy, as has been well documented in the last few years through Brexit, presidential elections, and the pandemic. As such, another war is afoot for control of the social media narrative.

The response has been relatively swift from the platforms. Snap and Twitter halted all advertising sales in Russia at the beginning of the month, followed by Meta. In part, this was to prevent the potential for scaled misinformation from Russian entities. In fact, Meta’s first step was banning ads from Russian state media and demonetising their accounts. Google similarly blocked YouTube channels connected to Russia Today and Sputnik across Europe.

Moscow responded in kind, most recently, by blocking Instagram and labelling Meta an ‘extremist’ organisation. Surprisingly, YouTube has escaped such a ban, despite previous threats that it would be. Thus, it remains a precious source of information for the Russian people. How Russia values their current control of the narrative on this platform remains a matter of conjecture.

These issues have brought brand safety and media responsibility back into focus, highlighting the scale of misinformation and dangerous content within social media. Naturally, there is a question over how brands should navigate this territory and evaluate the type of content adjacent to which their ads appear.

The Global Alliance for Responsible Media has aided in a collective drive to tackle the issue of brand safety across platforms over the past couple of years. Most platforms sign up to their definitions of unsafe content across all key categories, from illegal activity to adult content and child exploitation. Across these definitions YouTube, for example, can now report that 99% of their content can be considered ‘brand safe’ against what is considered an objective industry standard.

Most advertisers apply relevant platform controls and placement exclusions – sometimes overzealously. What’s debated less is the subjective nature of brand suitability, specific to each individual brand, which cannot follow a shared definition. It’s not a default exclusion or block list. The same study that reported YouTube content as 99% brand safe also determined that over a 1/3 of views still may not be considered ‘brand suitable’.

Whether to appear in proximity with certain content remains an issue each brand must examine with their agency. But the final decision should be theirs alone.

Lightbox Loves: The Loyalty Economy

By | Lightbox Loves

Whilst many Brits started the year with a renewed sense of optimism, the country is facing a difficult trajectory for the year ahead. Referring to the7stars’ own quarterly tracker, the QT, we know that the Brits are already starting to feel the impact of the rising cost of living, with 1 in 3 Brits are feeling less comfortable on their income than they did this time last year. Inevitably, this extra financial stress will result in a change to consumer purchasing habits which will have repercussions for brands and industries alike. 

With the rise in inflation and cost of living, and customers becoming increasingly expectant of brands, loyalty will become pivotal in retaining customers within an even more competitive landscape. However, we know that brand loyalty is waning for most. According to a recent report, 27% of UK adults feel no loyalty to any brand. Worryingly, it has become increasingly difficult to garner initial loyalty in the first instance, with nearly 40% of global shoppers agreeing that they’d need to buy from a brand five or more times before they would consider themselves loyal — an 11% increase YoY.

As a result, it is important that brands do not confuse habitual purchasing with perceived loyalty, which will be especially pertinent during a time where consumers will be more conservative with their spending. To obtain and develop loyalty, consumers need to feel valued and understood, meaning their interaction with the brand needs to extend beyond the transaction process. 85% of respondents overwhelmingly agree that they’re more inclined to buy from a brand whose values align with their own (rising to 90% for Gen Z). Therefore, the onus is now on brands to tap into and earn consumer’s emotional loyalty.

In a time where consumers are more vigilant when it comes to their data privacy, striking the balance will be key. A recent report suggested that 68% are willing to share information with brands they love in exchange for more personalized loyalty experiences and rewards, but will abandon brands that ‘over-personalise’. Loyalty programs, incentives and exclusive offers could be key to unlocking that personal experience that shopper’s crave, resulting in the holy grail of customer retention (87% of Brits say that a loyalty program influences them to buy again).

The secret to building true emotional loyalty requires crafting journeys, remaining principled, and creating experiences – moving beyond the data and understanding consumers as individuals. Now more than ever, it’s important for brands to recognise the difference and invest in the moments that matter, keeping shopper’s coming back for more! 

Source: The QT Feb 2022, Canvas8, State of Brand Loyalty survey 

https://the7starsmediaagency.sharepoint.com/:p:/r/_layouts/15/Doc.aspx?sourcedoc=%7B76DF4271-92DA-44AB-A537-31C941C53C31%7D&file=QT%20-%20February%202022.pptx&action=edit&mobileredirect=true&DefaultItemOpen=1

https://www.yotpo.com/loyalty-survey-2022-us-lp/

https://www.canvas8.com/library/reports/2022/03/29/how-will-inflation-change-supermarket-shopping