Why, in the first place, do we do advertorials? — Content Marketing from the Advertiser's Perspective / Interview with Mr. Hirosawa of Kao, Part 1

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This is CCI Lifestyle Digital CONNECT.

This year, we will continue to deliver unique CCI topics to help those of you struggling with content marketing.
We look forward to working with you again this year.

Now, for our first installment of the new year,as the first part of our "Content Marketing from the Advertiser's Perspective" series,we have invitedMr. Yu Hirosawa of Kao Corporationas our guest to share his insights on thinking about content marketing from an advertiser's point of view.

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<Interviewer Profile>

Why do we publish advertorials in the first place?

Funayama: "I've had the pleasure of working with you, Mr. Hirosawa, on various projects since 2015. When we are brainstorming campaign strategies together, I get the impression that plans for Google or Instagram are decided relatively quickly, but content media plans are only finalized after much discussion.
I think the difficulty of planning for content media, or how to go about it, is a common concern among advertisers. Also, when advertising agencies ask us for requirements, they sometimes ask,
'Do you have any materials summarizing the fundamental reasons for publishing advertorials?'I think this means thateven though the advertiser was asked for an advertorial proposal, they haven't fully grasped the reason for proposing it. So, first of all, I would like to ask you, Mr. Hirosawa, about the reasons for publishing advertorials."

Hirosawa: "First, to confirm the definition of 'content media,' I will proceed with the understanding that content media here refers to'the content production function of a media outlet, or media that produces, edits, and provides news and information itself*'. *Source: https://www.intage.co.jp/glossary/519/
With that in mind, regarding the reasons for publishing advertorials, I think the way of thinking differs depending on the scale of the brand budget.

For brands with large budgets, the decision-making order is:

First, we prioritize reaching potential customers and supporting existing customers through TV and mass advertising. Next, we consider approaches for segments that cannot be reached by mass advertising, or segments that have potential but are small in size.However, for segments that cannot be reached by mass media, I don't think a message like 'Here is this product' or 'This product is wonderful because of X' will resonate sufficiently, just as it does with mass media. That is whywe need an approach with new insights or angles, and we utilize advertorials in content media. Regardless of the size of the brand, if we don't approach segments other than those that are already aware, we won't gain new customers, so this becomes an important measure.Potential customers don't necessarily lead to immediate purchases just because you approach them, but I think it is important to continue approaching these segments."

Conversely, for brands with smaller budgets, I think there are many cases where performance-based advertising is the main focus. In this case, I think the approach would be to focus on optimization and efficiency with performance-based ads as the main driver to encourage purchases on e-commerce sites, but I think this method will eventually hit a ceiling.I think brands with smaller budgets often have relatively small pools of brand awareness and interest. If such brands only approach segments that are very close to purchasing, they will eventually exhaust those segments and end up in a downward spiral.If we talk about reach advertising like TV ads to break through that ceiling, the investment amount is limited due to the budget, and if you run reach ads one-off without being able to invest continuously, the effect is likely to be weak. Therefore,what should be done is not reach advertising, but advertising that can provide insights to the segment that will likely need the product, and I think advertorials play an important role as one of the means to do so. It's the image of properly explaining the benefits and sparking interest through content."

"Is there any targeting that fits this appeal?"

Funayama: "Indeed, I don't think consumers will get the point if you only promote a product that is not well-known using performance-based ads. On the other hand, I often receive consultations asking,'Is there any targeting that fits this appeal?'They are asking forthe targeting itself in display or video ads. Of course, I also receive consultations about advertorials in content media, but there are many cases where they don't lead to implementation."

Hirosawa: "The fact that they ask for targeting after thinking about the appeal means that it is a statement made as a result of a process that prioritizes the end result, or emphasizes things with high CPA based on past performance.Depending on the industry and product, CPA-based planning is important, and I don't intend to deny that itself. However, as with the previous point,in the end, I think it depends heavily on where the purpose of the advertisement is placed, or more specifically, on the strategy and stance of the company or brand.In other words, if it is a stage where you have to make a profit from acquisition advertising as a result of considering the business model, business phase, or the scale of your advertising budget, then that is fine. However, if you have already moved past that phase andgrowth is starting to slow down, and the cause is in areas like acquiring new customers, then I think it is a matter of first reviewing the segments to be approached, or reviewing the STP as they say in marketing textbooks. At that time, if you are going to expand your customer base to segments that you have not been able to approach at all until now, there will be cases where tie-up advertising is effective as a means.Of course, you cannot evaluate tie-ups by CPA."

For example, if we think about YouTube ads, before asking 'Is there targeting that fits the appeal?', we should carefully examine whether the content and context properly match the product, in line with the context of the customer segment we want to approach.Skipping the targeting of which customers to approach in the first place and trying to make ends meet with the advertising side's targeting suggests that the overall design is misaligned before such media planning.

That said,from the perspective of the media planning field, there may be cases where they just want to know effective targeting methods, or they are only entrusted with that part.
Continuing with YouTube as an example, I personally feel that search-linked and content-matched ads are the most effective.

The effect of search-linked ads goes without saying, butwhen thinking about content matching, what is important is the 'eye for quality' to determine which content is most suitable as a place to post advertisements after comparing your own brand, the customer segment you want to approach, and the content.Therefore, I think those on the planning side must always observe what kind of content is flowing on which platforms and media.

Considering the burden on advertising agencies, it is more efficient to use the logic defined by the platform side, such as custom affinity or custom intent, and I understand that feeling. However,as the advertiser's learning progresses, there may be more cases in the future where the advertiser operates it themselves. At that time, if the advertising agency staff are not more knowledgeable about media and content than the advertiser, the room for the advertising agency to intervene may decrease. I believe that the 'eye for quality' regarding media and content is important to prevent that from happening.."

Building 'certainty' on the advertiser side

Funayama: "'Eye for quality' means how well the context in media and content matches the appeal content, right? Then, I would like to ask based on your experience when you were actually in charge of a brand: is there a difference in effectiveness between a media plan that emphasizes content matching and context, and a media plan that uses default settings?"

Hirosawa: "Honestly speaking, based on CPA performance, there isn't that much of a difference. Especially since we are not a product category that prioritizes acquisition, there is virtually no difference that would impact the business.
So, when considering plans that prioritize content matching or tie-up ads, the only decision-making axis I have is 'plausibility.' By 'plausibility,' I mean the direction we should take, specifically for a new target audience, regarding 'how to convey this product to readers of this type of content so that it is highly accepted.' To verify this plausibility, naturally, you need a hypothesis about what kind of content will resonate with what kind of readers, but you have no choice but to confirm that through advertising effectiveness verification.
When I was in charge of a brand, I always conducted a campaign effectiveness survey after the initiative, and of course, advertorials were included in the scope of that measurement. Naturally, the sample size (n) for advertorials is small, but I design it so that we can observe a certain number of people who have read it every time, so while it is not an absolute metric, it is possible to measure the influence.
As an advertiser, what I expect to increase the degree of plausibility is the enhancement of post-campaign survey functions. Qualitative feedback like reader surveys, so-called OAs, also becomes important data, and even if the sample size is small, if brand lift surveys are attached, it will be material for advertisers to judge the effectiveness."

Funayama: "With YouTube, brand lift surveys are often included as a set. When I spoke with Mr. Takayama of 'Hokuoh, Kurashi no Doguten' previously, he mentioned that they use post-campaign surveys to decide on the next appeal points with the advertisers. While I think post-campaign surveys on individual media are limited as effectiveness verification, I believe they are pieces that fill in the 'plausibility' that Mr. Hirosawa mentioned."

What is a Category Entry Point?

Hirosawa: "Yes, I think so.
Koichiro Shima of Hakuhodo often talks about the power of magazines. That magazine content has the power to create the next trend. I don't know if current web media has that much power, but I think there are cases where they have gained enthusiastic support from a certain segment. The 'Hokuoh, Kurashi no Doguten' that Mr. Funayama mentioned earlier might be one of them. So, where is that certain segment? I think the advertiser side needs to define that firmly.. It is important to grasp what the 'trigger for adopting that product or product category' is for this 'segment that could become the next customer,' in other words, 'what is the category entry point.' In other words, it's the moment when potential customers realize the issues related to the product, the entrance or the angle."

Funayama: "Specifically, what kind of segment is a category entry point?"

Hirosawa: "As an example, let me talk about Curél, which I was in charge of before. Since the birth of the brand, Curél has consistently approached the phenomena of 'sensitive skin' and 'rough skin.' However, there is a limit to this as an angle, so a different approach to other segments is necessary.

So, the next thing to think about is where the trigger for worrying about 'sensitive skin' or 'rough skin' lies. In other words, what kind of context exists around sensitive skin and rough skin.
At this time, for example, by focusing on life stages like pregnancy or activities like child-rearing and linking them to rough skin, we can approach the pre-mom and mom segment by utilizing product characteristics such as 'ingredients that can be used on babies,' 'ingredients that can be used during pregnancy,' and 'gentle texture.' Simply appealing with 'Aren't you suffering from rough skin?' is weak, but if the appeal is tailored to the environment of pregnancy or child-rearing, the possibility of moving their hearts increases.

In this way, the trigger for noticing a category or product is called a category entry point.
On the brand side, I believe the key is how many entry points we can create that align with the tastes of consumers. The 'connoisseurship' mentioned earlier also has the implication of how to find and create these new entry points. And, I think content media can contribute to creating those entry points."

Funayama: "So you mean we need content media with a context that follows the product's characteristics and story."

Hirosawa: "Yes, that's right.
Using the previous example again, since the pre-mom and mom segment changes every year, the content can be reused to some extent. In that case, if a normal tie-up consists of production costs + placement costs, it is also possible to reduce new production and allocate it to placement, and develop that initiative over the medium to long term.I think it's not a bad framework for media companies either, as initiatives continue for several years in that form.

Also, I think that by doing this kind of initiative, the value of the media and the value of the content can be maintained for a long time. Therefore, it might be good for media companies to propose such initiatives to the advertiser side."

How to think about 'boost placement' for advertorials

Funayama: "The discussion up to this point is about the value of content media, including the users who visit the media.
On the other hand, we very often receive requests from advertisers saying they 'want reach.' Even if we explain that we are reaching the users they want to approach, there are many cases where they are not convinced. To supplement reach, so-called boost initiatives using SNS or recommendation tool ads are necessary, but I think content media at this time only has value as a creative. How do you think about such boost initiatives?"

Hirosawa: "If it is necessary to reach the content, of course, I think boosting is meaningful. It's a question of how to do the boosting at that time.

Probably, if I were to summarize the worries of media companies, it would be the point of 'content distribution management.' Just placing a tie-up article as an ad on an external medium to gather traffic doesn't have that much profitability for the media company, and also, since you probably can't actually grasp where the induction frame to your own article is appearing, there is even the possibility of brand damage, which is often a problem on the advertiser side. I don't have an immediate idea for how to firmly connect the former ad-driven traffic to your own revenue, but regarding the latter, I think a review of native ads and ad formats, which is often talked about within the industry, is required. Also, not just the format, but if media-to-media cooperation becomes possible regarding traffic data, it might help solve the former problem. It is difficult for competitors to cooperate in media, but if the management power of content distribution is lost and it becomes a battle of production power alone, I think every media company will be in a tough competitive environment."

How was it?
In the second part, points of 'connoisseurship' in content media and how content media works within life flow will be discussed by Mr. Hirosawa.

At LDC, we will continue to interview key people in the industry and share information.
Please contact us below for specific advertising planning consultations.

*The second part is here.

■Inquiries: ldc@cartahd.com

Author: Takaaki Funayama