Archive for April 24th, 2012

IKEA Rents Out Domestic Space For Smart Catalogue Campaign

IKEA has a track record of thinking outside the (flatpack assembled) box when it comes to advertising and this campaign, based in Australia, is another example of the brand doing something different to get their message out there. Noticing that the majority of consumers discard their catalogue shortly after receiving it, they needed a way to make sure that they would stay in their homes for longer as that would mean more sales.

What they did was ingenious, IKEA advertised that they wanted to rent out space in people’s homes, but this wasn’t for furniture but instead for their 224 x 192 mm catalogue.  Advertising the idea over numerous different mediums, many people took IKEA up on the offer and because they were renting the space, IKEA would pay the house owner monthly rent for the space it occupied. These cheques were then redeemable in any IKEA store which meant that people would go into the store and purchase goods.

Overall, as $2 million in rent cheques were mailed out, it meant that $14 million in revenue was generated and sales during the first week of the campaign increasing by 59 per cent. The campaign was created by 303 Group, based in both Sydney and Perth, and the case study can be found in the video below.

How Facebook Will Turn Into Instagram

People who have been following social media for the last few years will remember Friendfeed, the service that Facebook bought for about $50 million a couple of years ago. It was one of their famous Acqui-Hires where they spend a lot of money mainly for the engineering talent behind the company.

The interesting thing was how they took out a competitor that people were starting to use, before rebuilding their entire site using that talent and making Facebook a better place. Friendfeed was only being used by a handful of geeks, but its real time nature didn’t go unnoticed. Back then, Facebook was an incredibly static website, but it really isn’t any exaggeration to say that we are all Friendfeed users today even though we do it on the Facebook website.

Real time comments, likes and elements like the ticker that we all know and love were born out of the Friendfeed team. This means that Facebook ultimately inherited a better service and the Friendfeed guys get to have close to a billion people using their products. Everybody’s a winner.

So onto Instagram. The dust has more or less settled now and it is time to start asking what Facebook will do with the company and how they will fold it into their existing services. I don’t think we will see a Friendfeed type strategy this time. I think Facebook will leave it as its own app and there is a serious chance that Instagram will become as big if not bigger than Facebook itself. I realize that is a huge statement to make, but Instagram has everything it needs to rival Facebook’s own success.

Instagram’s Strengths

The key is that it is lightweight, mobile and incredibly social. People absolutely love sharing photos and right now, there is no better place to do that than on Instagram. It really is a beautiful experience and because it has been built from the ground up, they have a huge advantage over Facebook. Although Facebook has made some great improvements on their mobile offerings, the app is still fairly painful to use. You don’t get the same slick immersive experience that you do when you fire up Instagram.

I really wouldn’t be surprised if in two or three years time, Instagram was the main place that we all accessed Facebook through. They’ll add other features and get to 500 million users without a doubt. They’re at the very tip of their development cycle with new additions like a website, iPad app and additional features all sure to be delivered faster, now that they have a wad of cash and resources. The last time I felt this level of community, growth and interaction and got so excited about something was Facebook and Twitter in their early days. Facebook made the right call on this one to such an extent that Instagram might just be the new Facebook.

Google Opens Up Adwords For Video To All Users

Google is pushing advertising on Youtube for quite a while, with 800 million visitors to the site every month, the platform is practically a goldmine for revenue that Google and similar sites are figuring out how to monetize. The latest effort is to integrate AdWords with Youtube videos and allow all users to avail of the service, mainly smaller businesses who want to expand their audience.

After making various improvements to its AdWords services including the future introduction of a system that recognises misspellings and variations of keywords, Google AdWords for video is similar to its text equivalent but instead users who have videos can assign keywords to their videos and present a call-to-action overlay on your video, directing traffic to your website or a specific page.

Through this service, you can discover how viewers are engaging with your brand during and after they watched your ad, as well as the type of audience you’ve attracted via the AdWords analytics system. If you’re familiar with Google Analytics, then you’ll find more of the same here, showing you which ads are performing the best and where your audience is coming from.

Pay Per Engaged Views

One of the major advantages that Youtube is pushing is their Trueview video ads, only charging you when your ad has been viewed. Users aren’t charged if a viewer has skipped their ad or if they have already seen your video so you only pay for engaged viewers. There is no minimum budget spend required to launch a campaign on video although this is because AdWords uses a cost-per-click bidding system and be charged only the necessary amount to keep your ad at its position in its page.

To encourage users to hit the ground running, Youtube has also compiled a Advertiser Playbook teaching users how to make sure their ads reach the widest possible audience. This is a move that benefits Youtube and Google as high quality ads means that they will be watched to the end and the company will get paid for it, thanks to the Trueview system mentioned earlier.

The company claims that from a recent Campaign Insights report, Youtube video ads drive a 20 per cent increase in traffic to your website and a 5 per cent in searches for your business so Google is hoping that these percentages will increase once small businesses start using the service.