Innovation is the heart of the tech and telco industries, and brands in this category continue to blaze trails by embracing new digital touchpoints. Paid media delivers 29% of touchpoint impact for the technology & telecommunication brands, which is above average compared to other categories. Within the paid media mix, TV advertising still has the single biggest impact, and is twice as impactful as in other categories. This goes to show that a blend of traditional and digital media integration drives highly effective advertising, showing other sectors the way.
TV is more cost effective thanks to very strong synergies with other media. Tech and telco brands mainly achieve this by spending more on digital media to enable tighter integration between TV and digital media. Facebook and online video are especially cost effective for building associations and driving purchase intent.
For example, one of the world’s leading telco brands (in the UK) wanted to shed light on digital video’s role in complementing TV. They worked with a provider who was able to target online video at light TV viewers. Using Kantar’s CrossMedia, they measured the campaign’s reach and frequency, along with the individual impact of modelled channels. Online video added 5.1% incremental reach to the TV heavy campaign, and it did so cost effectively (the same additional reach on TV would have cost £200,000 more).
As 5G gets more real in 2020 and beyond, it stands to provide far greater capabilities to reach and engage with consumers. The nature of future opportunities that come with 5G remains nebulous, but tech and telco brands have a responsibility to be early adopters of new approaches which will be fuelled by higher quality on the go media delivery.
Another observation in the tech industry is that physical contact with the product and recommendation by friends or family members are some of the most impactful touchpoints. Owned & earned media create 71% of brand impact, and recommendation by friends or family members is the 2nd most impactful touchpoint creating 9% of brand experience. Product test reports and consumer reviews are among the other top drivers of the category.
Case in point: a foreign electronics brand looking to enter the US was perceived as cheap and low quality, a major barrier to success. Using Kantar’s Connect they measured the full category landscape and identified the most impactful category touchpoints. An independent product test report revealed that the brand’s product quality was comparable with market leading brands, and this was shown to have high impact on attitudes. The test result was therefore integrated as a key message in brand communication through various touchpoints. Linkages were actively built and managed between the independent website and the brand’s owned touchpoints.
One thing is for sure – tech and telco brands must continue to be early adopters of new digital touchpoints while retaining a human touch. The unique circumstances of 2020 have accelerated this further since many consumers are buying services and electronics products online for the first time ever, as evidenced by Kantar’s COVID-19 barometer. As torchbearers for other categories, getting the media mix right and leading in the digital space is critical to ensure success for tech and telco brands.
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