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Israeli Firms Are Putting New US Small Businesses on The Map

According to the most recent data available to the United States Small Business Administration, there are currently 29.6 million companies with under 500 employees operating across the nation. Some 48 percent of the country’s active workforce is employed by small businesses, but over 80 percent of these companies are solopreneurial efforts.

Tech solutions.

These are companies that need as much help as they can get. Startups offering tech solutions that provide significant value to this sector are in a great position to succeed. Targeting these businesses provides a higher volume of potential customers in a growing market that has money to spend. A study released by the Federal Reserve of New York in April indicated that 60 percent of American small businesses are on pace to earn more this year than last, and approximately 40 percent are aiming to expand their teams.

Smaller organizations are looking for more paid solutions — they’re willing to spend money on things to help them with their businesses, so they have more time to focus on the operational side of things.

Traditionally, Israeli startups have gone after bigger whales, favoring enterprise tech customers. As recently as this past December, Business Insider’s list of the 21 “coolest” tech startups in Israel included 11 companies targeting the enterprise, eight selling products directly to consumers and just two that are relevant for small-business sales.

Mind you, one of them, Wix, had gone public some three years prior, and the other, SalesPredict, had been acquired by eBay six months before the list was published. So there were zero buzz-worthy startups targeting small businesses — at least according to the mainstream, global media at the end of 2016.

Related: 5 Reasons Israel Is Ideal for Startups and What the U.S. Can Learn

Content tools.

This year is another story altogether. Hot user-generated content tools like Showbox and Mapme, for example, are empowering indie brands and ecommerce companies by making it easier for them to engage meaningfully with their customers. There are others as well, some of which I was able to visit on my recent REALITY Tech experience earlier this summer.

Let’s take a look at three leading Israeli upstarts making solid inroads with U.S.-based small businesses.

1. Promo by Slidely.

Promo by Slidely is a platform that allows small businesses to create marketing videos without the need for an extensive budget, time, know-how or equipment. It provides access to a large library of video clips, licensed music, and a text editor so brands can create their own marketing videos in a snap.

Video content is a must online nowadays, and the fact is, many small businesses across the globe simply lack the time, expertise and money to invest in their own video creation at any scale.

This platform provides a way for small companies to capitalize on the video marketing trend and its benefits without having to agonize over the details of creating their own promotional videos completely from scratch. Rolled out last summer, Promo is just one of the products Slidely has to offer. They also provide the ability to create collages and shows featuring both video and image content from social media accounts.

Related: 6 Tips to Double the Success of Your Video Marketing Campaign

Slidely has penetrated the U.S. market by partnering with Getty to provide video footage for use in Promo’s project libraries. Paying users have created some 250,000 video projects in the past year. Today the company, headed by CEO Tom More, is looking to double down on Promo’s success, reinvesting in feature development, diversifying supported video formats and partnering with more marketing platforms that have global reach.

2. WiseBrand.

Tel Aviv-based WiseBrand offers a family of solutions specifically targeted at helping micro businesses grow. It features six different products:

  • email signatures with dynamic links and standardized branding.
  • personal web pages to help promote and capture leads for your business.
  • submission of listings to key web directories to help local businesses get more leads.
  • business cards to help promote your business.
  • branded promotional items for merchandise sales and giveaways.
  • web traffic and email analytics and insights.

Small-business owners can choose to use one or any combination of these products. Using WiseBrand’s products, businesses have more or less everything they need to connect with customers. They can do so with limited resources, making their business look as professional as any Fortune 500 company.

Image source: http://wisebrand.co/

Over one billion emails have been sent with WiseStamp signatures in them and some 700 million users have gotten onboard since the company was founded by CEO Orly Izhaki nine years ago. According to Crunchbase, this growth has been funded by just one seed round.

3. Fiverr.

Darlings of the global tech blog echo chamber for the past half-decade, Fiverr is a marketplace where you can find every service from graphic design to content creation and SEO tasks for as little as $5.

Small businesses often struggle to get everything done, and even if you’re working with a Jack or Jill of all trades, some stuff just is better outsourced to experts — or at least cheap, hungry talent. For solopreneurs and small-business owners short on time or expertise, who have only a limited budget, Fiverr provides access to a global network of freelancers who can get a job done.

Related: Gig Economy Platforms Are Creating A New Class of Entrepreneurs

Fiverr penetrated the U.S. market by allowing freelancers from around the world to sign up to offer their services. Because many of the services offered allow for customizations priced higher than $5, skilled freelancers can earn a decent income, while buyers can source the tasks and marketing assets they need without breaking the bank. It also helps ambitious freelancers maintain a steady flow of gigs, which relieves a big pain point for them.

Image source: https://www.fiverr.com/introducing-pro

Many have questioned the quality — and even the legality — of the work delivered via Fiverr gigs over the years. But the addition of the recently announced Fiverr Pro service, which allows vetted service providers to display verification badges on their profiles, should help the company in its battles against naysayers.

Targeting U.S. B2B.

The global B2C sector might have the most market potential for startups, thanks to the sheer volume of consumers, and the enterprise sector is where all it takes is one big contract to unlock success. But today, more rising Israeli startups are winning by realizing that when it comes to American customers, B2B represents a major opportunity.

By penetrating the U.S. small-business market, they’ve found significant growth — and are helping others to do the same.

The Trump administration may be about to commit to billions in additional spending


People gather for a rally and protest to mark the fifth anniversary of the Deferred Action for Childhood Arrivals (DACA) program near Trump Tower in New York on Aug. 15. (Justin Lane/European Pressphoto Agency)

This article has been corrected.

Shortly before the 2012 election, the administration of Barack Obama instituted a new approach to immigrants in the country illegally. Those who’d come into the United States before their 16th birthdays and who were in school or had graduated from high school without being convicted of a crime were offered protection from deportation and the ability to work legally in the United States. Those eligible had to apply for coverage under the Deferred Action for Childhood Arrivals (or DACA) program — and more than a million did.

The program requires that applicants renew their status every two years.

As of the most recent quarter for which data are available, Immigration and Customs Enforcement reports that 1.59 million people have applied and been approved for DACA protection. This figure is higher than the total number of DACA recipients, however, since the program is capped at 787,000 total. It’s not clear precisely how many people are currently covered under DACA.

During the 2016 campaign, Donald Trump pledged to end the program on his first day in office. More than 200 days later, that threat appears to be about to come to fruition. Facing a deadline of Sept. 5 imposed by state lawmakers from his party, President Trump will soon need to decide the fate of the program — and those individuals.

If he repeals DACA, the implications are significant.

Most of those who’ve been approved as program participants — of the 1.59 million applications cataloged by ICE — were born in Mexico but almost 19,000 are from Asia and about 2,000 are from Poland.

Approved applicants tend to live in the nation’s most populous states, which isn’t a surprise. But a number of southwestern states have a disproportionate number of DACA applicants relative to their overall populations. Nevada, for example, has seen about 25,000 approved DACA applicants, a figure equal to 0.84 percent of the state’s population — the same ratio as in Texas.

Again, these figures represent those who applied for applications over the program’s history and are not current values.

What would a complete termination of DACA mean? It would mean, in essence, that those 787,000 or so people who’d received protection under the rule could be subject to deportation. Earlier this year, the Arizona Republic asked ICE how much it cost to deport someone who’d immigrated to the country illegally and learned that, on average, the agency spent $10,854 per deportee. (Those costs vary, of course, depending on the length of any legal proceedings and if the individual is being returned to Mexico or, say, India.)

In other words, ending DACA and moving toward deportation of approved applicants would run up a bill of over $8.5 billion. That’s enough to fund the National Endowment for the Arts (which Trump’s budget proposed eliminating) for 56 years. It’s enough to fund 40 percent of Trump’s proposed border wall.

The administration doesn’t necessarily have to repeal DACA entirely, and doing so wouldn’t necessarily mean nearly 800,000 deportations. It could instead do nothing, in which case those Republican state legislators would take the policy to court where the administration wouldn’t have to defend it.

From a political standpoint, that might be the best bet for Trump. His base would certainly support repealing DACA, but the program is popular with Hispanic voters. In February 2012, Obama’s approval rating among Hispanics was as low as 51 percent, six percentage points above the national number. By the end of the year, it had surged to 77 percent, 24 points higher than Americans on the whole.

That sort of shift would be hard for any politician to ignore, even one who proudly declares himself to not be a politician.

Correction: This article originally misinterpreted the data from ICE. Thanks to Dara Lind from Vox for pointing out the mistake. The article has been updated throughout.

White House braces for ‘long, frustrating recovery’ from Harvey

The White House on Thursday said it is preparing for a « long, frustrating recovery » process for the tens of thousands of people displaced in the Gulf region in the wake of Hurricane Harvey. 

President Trump’s homeland security adviser Tom Bossert warned that conditions remain as dangerous as ever for those on the ground in Texas and Louisiana, which have been battered by historic levels of rainfall and flooding.

The tropical depression, which made landfall in Texas last week as a Category 4 storm, continues to wreak havoc on the Gulf region, and has left tens of thousands displaced.

At least 100,000 homes have water damage and Bossert advised of a coming “housing challenge” in the region, as the temporarily displaced return home and insurers face a deluge of claims.

“We’re soon going to move into a long, frustrating recovery process,” Bossert said. “The important message for me to leave for the people of Texas at this point is that we’re not going anywhere.”

Relief efforts remain in the search-and-rescue phase, and the federal government is engaged in water rescues and is relocating thousands of injured and elderly people from flooded hospitals.

There are 28 search and rescue teams from 16 states helping out, including more than 7,500 federal workers and the entirety of the Texas National Guard.

The federal government is looking to transfer 7,000 hospital patients into safer conditions. An estimated 30 people have died so far but authorities expect that number to climb once the floodwaters recede and the full extent of the damage comes into view.

“Unfortunately, we will see additional losses of life if history is any precedent,” Bossert said. 

Soon, the White House’s focus will turn to disaster relief funding at a time when Congress will be grappling with how to raise the debt ceiling and keep the government funded.

Office of Management and Budget director Mick MulvaneyJohn (Mick) Michael MulvaneyOPINION | Corey Lewandowski: Trump’s tax reform plan prioritizes American voters, not lobbyists Republicans don’t know who to talk to at White House To pass tax cuts, GOP should talk of deficit-neutrality, not revenue-neutrality MORE, himself a former Congressman, is “working around the clock” with lawmakers on a spending package, White House press secretary Sarah Huckabee Sanders said. 

Bossert indicated that the White House would approach Congress with an initial appropriations request based on early projections and then come back at some point to request a second round of funding.

“I’m not worried at all that we won’t have the money for the operations underway and the operations that we foresee in the next month,” Bossert said.

“I think we have every reason to believe that that’s going to happen in a responsible way,” he said. “From my perspective now and from the planning session we had this morning, I don’t think there’s going to be any particular problem in our approach to the Congress in this fall.”

Rep. Pete Sessions (R-Texas) said Thursday the damage may cost the federal government $80 billion, but estimated the cost to ordinary Americans would surpass $900 billion.

Meanwhile, victims on the ground are dealing with their own personal financial crises.

Bossert met with chiefs of staff of Trump’s Cabinet on Thursday to talk about housing stock in the region and how best to coordinate with the Federal Emergency Management Agency (FEMA) and state and local officials for those who have been displaced.

“We’re trying to put all those housing solutions and all those government programs together and think through what’s available and how people might utilize that,” Bossert said.

There have also been reports of jacked-up prices of everyday goods by those looking to take advantage of people who are desperate for food, water and supplies. 

Bossert scolded price gougers during the Thursday briefing, saying that “law enforcement would come down on them with a hammer.”

Meanwhile, the president and vice president have taken a hands-on approach to their first natural disaster in the White House.

Trump has pledged $1 million of his own money to the effort and will make his second swing through the region on Saturday, with trips to both Texas and Louisiana planned.

Vice President Pence and second lady Karen Pence flew into Corpus Christi, Texas, on Thursday to meet with flood victims and survey the damage.

Karen Pence led a group in prayer and Vice President Pence pulled on blue work gloves to clean up branches and debris in the Texas heat near where Harvey first made landfall on Friday.

On Thursday, the president spoke with the leaders of Mexico and Canada and was said to have been “deeply touched” by the outpouring of international support.

“Coordination is happening better than any storm that we’ve seen before, and so stressing on anything that’s not working well really is … going to be ill-informed,” Trump said this week. “I’m seeing nothing but positive. I’m seeing nothing but appropriate coordination. If there is a problem somewhere, [FEMA director] Brock Long is going to get his handle around it, and he’s going to fix it.”

Video marketing set to fly as data prices fall? | IT News Africa …

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Video marketing set to fly as data prices fall?

August 28, 2017 • East Africa, North Africa, Online Social, Opinion, Southern Africa, West Africa

Video Marketing

Ernst Wittmann, Regional Manager for Southern Africa at ALCATEL.

If you want someone to remember your message, show them a picture. If you want them to act on your message and convert them to customers, show them a video.

Research has found that 65% of business decision makers visit a marketer’s website after viewing a branded video, and 64% of customers are more likely to buy a product after watching a video about it.

Video is expected to make up 74% of all Internet traffic this year and Cisco predicts this will rise to 80% by 2019.

We’re addicted to videos. They transmit messages faster, they’re engaging and we’re more likely to retain information that’s presented to us visually. It’s no wonder that video has become a huge focus for social media channels, with 300 hours’ worth of video being uploaded to YouTube every minute, and Snapchat and Facebook, respectively, streaming two billion and four billion live videos every day.

Video should form the core of any content marketing strategy but high data costs in South Africa means marketers are not getting the return from video that they should be. Consumers are frugal with their data and video is the hungriest of them all. With options to turn off automatic video playback on social media in order to save data, it’s not likely that you’re getting the reach with your video marketing efforts that you could be.

But that could change soon. The Independent Communications Authority of SA (ICASA) is conducting an inquiry into high data costs amid a growing demand by civil society that.

A drop in data charges will be a boon for marketers, especially with the continued roll-out of high-speed fibre across the country.

When consumers are not hamstrung by high data costs and low Internet speeds, video consumption will skyrocket and marketers can fully execute – and reward from – their video marketing strategies. In some instances, it may very well be groundbreaking.

Here are a few good reasons why every business should consider video content marketing:

  • It boosts your search engine optimisation (SEO). Content is 50x more likely to make it to the first page of Google results if it includes video.
  • It increases engagement. Social videos generate 1200% more shares than text and image combined.
  • It supports revenue growth. Marketers who use video grew revenue 49% faster than those who didn’t use video in their campaigns.
  • If you don’t yet have a video marketing plan in place, here are a few things to keep in mind:
  • Keep videos in line with your brand. Logos, fonts and colours should remain consistent.
  • Include a video on your landing page. Ideas include product demos, a different take on the ‘about us’ section, testimonials, how-tos and explainers. This could increase your conversion rates by an astonishing 80%.
  • Incorporate video into your email marketing for a chance to boost clickthrough rates by 200-300%.
  • Keep videos under five minutes. Videos up to two minutes long get the most engagement.
  • Tailor your content to the channel. Social videos have more engagement than any other content format but each platform uses video differently, e.g. Snapchat creates a sense of urgency and YouTube supports longevity. Understand these nuances to ensure you have maximum impact.
  • Optimise for mobile. Keep videos short and use compression technologies so that they load quickly and aren’t data hungry.
  • Include subtitles. Some 85% of Facebook users watch videos without sound. Including subtitles ensures that your message still comes across.
  • Tell a story. People relate and engage with stories more than brand or product messaging. Stories are also more shareable.

With an increasing number of high-quality, free video editing tools available today, getting started with your video marketing strategy has never been easier or more cost-effective. Start playing around today and experimenting with lighting, styles and content so that you can hit the ground running once those data costs drop.

By Ernst Wittmann, Global Account Director MEA Country Manager – Southern Africa at Alcatel

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Video, social media, and print: Marketing town’s many assets

Culture, community, concerts, fine food, family, green lawns, and shady sidewalks — Ridgefield is rich in life’s treasures. Now an alliance of town business leaders wants to get the word out with a marketing campaign.

“There’s so many great things happening in the town — whether the cultural, the commercial, the community — I think it’s time we let the world know,” said Wayne Addessi, proprietor of Addessi Jewelers and owner of a block of Main Street storefronts.

Addessi is organizing an effort to market Ridgefield using multiple platforms — video, social media, print — highlighting Ridgefield’s arts, cultural and business communities.

He wants it professionally done, and has gotten commitments totaling $15,000 toward a $25,000 goal.

“It starts out with promoting the cultural assets that we have. If we could drive more people to visit those assets, they’re going to come into the town, do some shopping, visit Main Street, go to a restaurant,” Addessi said.

“The most important driver is the cultural, and the second is the restaurants, and from there you’re going to visit the shops — you might find Adam Broderick, or the Ridgefield Bicycle Shop.”

The campaign will be broadly focused, promoting the entire town’s varied assets.

“We’re not going to sell anything. This has to be an organic approach,” Addessi said.

“It’s not just Main Street. The driver behind the success of Ridgefield is the cultural assets we have here.”

Origins

Addessi started about three months ago. At a meeting to discuss a potential “first-floor retail” regulation, he felt more regulations and restrictions weren’t the solution. How about a positive direction? Tell the world about the town Ridgefielders love. He spoke to Economic and Community Development Commission (ECDC) members Paul Levine and Arnold Light.

“We want to promote culture, community and commerce in the town,” Light, the chairman, told the ECDC’s August meeting.

“Wayne would like our support and input,” Light said.

Addessi planned to meet with them Tuesday, Aug. 29.

Authorization

The selectmen voted Aug. 23 to authorize an account to accept donations and disburse money for the campaign — lending the town’s accounting capacity.

“That’s our participation, if you will,” said First Selectman Rudy Marconi. “This was a request from the ECDC.”

He added, “It’s probably the most active and productive ECDC we’ve had in many years. They are getting things done.”

Digital and print

A strategy document outlines Addessi’s concept: “… to develop a public relations and marketing campaign that will target residents, business owners, and visitors within the community of Ridgefield, Conn., and a strong focus and reach into the surrounding 25-mile radius and into New York.”

“It would highlight Ridgefield’s “cultural, commercial and community assets and convey the benefits we offer…”

Addessi envisions “working with a content developer, we will create a series of videos” showing off the town’s assets.

“…We will work with a local Public Relations agency that will help us develop clear and consistent messaging around our campaign and secure local, regional and national press to support the messaging,” Addessi’s strategy outline says.

“We will brand our town, convey the ideal message all through digital effort along with print as well.”

In an interview, Addessi spoke of video footage — overhead drone shots, inside close-ups of Ridgefielders talking about their town.

“The videographer is going to visit iconic locations throughout Ridgefield, the commercial assets and the cultural,” he said.

Addessi used Deborah Ann’s Sweet Shop as an example.

“Why do I visit Deborah Ann’s? Talk to the kids who are eating ice cream,” he said. “ … At 3 o’clock, the kids with the backpacks, going to Deborah Ann’s.”

Too many silos

Addessi’s plan would create “an internal communication infrastructure” allowing organizations to share plans.

“There’s so many silos in Ridgefield. Everybody’s doing something, but we’re not communicating that well,” he said.

A firm hasn’t been chosen, but Addessi wants public relations professionals to ensure the effort is consistent, and doesn’t lose momentum as volunteers drift into other priorities.

He envisions at least a year-long effort that would be continually updated.

“What we’re thinking about is each month we’ll have a great story to tell, we wanted to do it monthly,” he said, “The story of The Playhouse, the story of the Prospector. Then you have the stories of some of the great restaurants in town …

“We want to get the word out to the rest of the world what’s happening here.”

Add the Power of Video to Your Email Marketing

Compare analytics and open rates from before video use and after

If you haven’t already been using videos in your email marketing, implement it in one of your upcoming campaigns and then compare the difference in open and click rates. This will help give a fair assessment on key factors like: Whether the video content and design or layout is working for your audience, whether you need to change the format and structure of the video presented in the email, etc.

Don’t stop after the first try

If at first you notice no significant rise in number of clicks, conversions or open rates, try to change the layout or content flow (text) of the video, then try implementing it again and compare results. There could be other points to think about if your Vmail doesn’t work the first time. Reassess the length of your video, was it too long? Was it not long enough? Was it share-worthy content? Or, how can you tweak it to make it more social-media-share-worthy?

Break the monotony

An email marketing campaign needs a good mix of formats like text, video, GiFs, memes and illustrations depending on the audience, the message and where the prospect is in terms of the sales funnel. Marketers should not force fit videos, but leverage the power of showing over telling at the point where it could best impact effectiveness.

Colby adds, “At this point in time, video is one of the most shareable, engaging content mediums out there. In fact, according to Social Media Today, 50% of marketers who use video in email see increased click rates, sharing, and forwarding. But make sure to follow best practices: Because of limited email client support, we wouldn’t recommend directly embedding a video in an email marketing campaign. Instead, use a thumbnail image or GIF that links out to a mobile-optimized landing page.”

Video + Email: a powerful performance boost

The use of tools, tech and creativity that is complimented by real-time analytics allow marketers a strong base to assess performance of their email campaigns instantly. This gives them the chance to constantly refine their strategy and improve ROI to optimize results. Moreover, the 3 elements of – technology, creativity and easy-to-use tools have combined to enable marketers today to create interesting interactive elements that can drive a performance boost to every email marketing initiative.

Let’s look at this example, shall we?

Asana, a business productivity tool uses interesting video-based emailers to help their new subscribers transition from email to the tool. Imagine being in the shoes of an employee whose company is transitioning from email to a productivity tool. Wouldn’t it just save you a whole lot of time to go through a video tutorial that’s delivered straight to your inbox?

What the future holds

Colby says, “Soon, we’ll see interactive email really start to catch fire. Whether it will be done well, with purpose, or poorly as the hot new thing to imitate (likely both), you’ll see start seeing it more and more in your inbox.”

EJ McGowan, General Manager at Campaigner adds, “One thing we will see a lot more of in email marketing in the future is artificial intelligence. For email marketing, AI promises even more personalization for subscribers, which can ultimately boost interaction, engagement and conversions for businesses. As AI integrations and applications become more commonplace, their use cases and benefits will extend from enterprises to small- and medium-sized businesses, leveling the playing field and helping them compete.”

“Personalization is already a critical email marketing element and something we will see to an even greater degree in the future. In our digital age consumers expect to be catered to in a manner that is relevant, authentic and shows a brand truly understands them. The fact of the matter is that if marketers are not consistently delivering new, personalized content, consumers’ interest will begin to stagnate and they will eventually unsubscribe. Email content is going to continue to be more personalized as senders are able to gain access to more information from different sources. Additionally, receivers of email will be able to customize their experience by choosing how often and even when they want to receive content.”

“Cross-device marketing is making its way into the spotlight. It’s becoming increasingly less common for a consumer to make a purchasing decision that involves just one device — a trend that is expected only to be magnified with coming generations. Therefore, it’s crucial for brands to craft extensive cross-channel strategies spanning all devices and multiple platforms. We’ll see more emails crafted for optimal experiences across desktops, tablets and smartphones to create a fluid and seamless reading, browsing and shopping experience.”

So are you all set to amp up your email marketing with the use of rich videos?

Fact-checking President Trump’s speech on his tax plan

President Trump on Wednesday delivered an address on his “principles” for a tax plan in Springfield, Mo., though he provided few details. He also shifted from extolling how well the economy is doing to language that suggested the United States was suffering terribly. As usual, some of the president’s  facts and figures were a bit fishy, so here’s a roundup of 10 of his claims.

“In the last 10 years, our economy has grown at only around 2 percent a year.”

This is misleading. By going back 10 years, Trump includes the worst recession since the Great Depression, which brings down the 10-year average. This chart shows that that quarterly average since the recession was well above 2 percent, even hitting 5 percent in the third quarter of 2014. The GDP growth rate for the United States averaged 3.22 percent from 1947 to 2017.


Source: Bureau of Economic Analysis via Federal Reserve Bank of St. Louis

“We just announced that we hit 3 percent in GDP. Just came out. And on a yearly basis, as you know, the last administration, during an eight-year period, never hit 3 percent.

Trump plays some sleight-of-hand with the numbers. He first cites an annualized quarterly figure — 3 percent GDP growth in the second quarter of 2017 — and then compares it to what appears to be calendar-year figures for former president Barack Obama.

As the chart above shows, the economy grew better than 3 percent in eight quarters during Obama’s presidency, most recently in the third quarter of 2016. (Technically, this is known as “annualized quarterly change” or SAAR — seasonally adjusted at annual rate.) Trump gets his terminology wrong, using the phrase “yearly basis,” which could mean from the third quarter of 2015 to the the third quarter of 2016, which case Obama easily exceeded 3 percent numerous times. On an annual basis, Obama’s best year was 2015, when annual growth was 2.6 percent.

“If we achieve sustained 3 percent growth, that means 12 million new jobs and $10 trillion of new economic activity over the next decade. That’s some numbers.”

With this statement, Trump downgrades promises he made during the 2016 campaign — he said he would achieve 4 percent GDP growth and 25 million jobs over 10 years.

“In 1935, the basic 1040 form that most people file had two simple pages of instruction. Today, that basic form has 100 pages of instructions, and it’s pretty complex stuff.”

Trump is correct that in 1935, the basic 1040 individual income tax form had two pages of instructions, but this claim needs historical context.

There are many reasons the instructions were so simple back then — including that just about 4 percent of the population paid the federal individual income tax. In 1935, the individual income tax largely was a tax on the wealthy. In fact, the top rate in 1935 was 63 percent — and President Franklin D. Roosevelt raised it to 75 percent later that year.

This changed with World War II. “Driven by staggering revenue needs, lawmakers in both parties agreed to raise taxes on everyone: rich, poor, and — especially — the middle class,” wrote John Thorndike, director of the Tax History Project.

“The tax code is so complicated that more than 90 percent of Americans need professional help to do their own taxes.”

This is misleading. The 90 percent figure he is referring to includes people using tax software, such as Turbo Tax, which helps people file their taxes on their own. According to the National Taxpayer Advocate’s 2016 report, 54 percent of individual taxpayers pay preparers and about 40 percent of individual taxpayers use software that costs about $50 or more.

Yet later during the speech, he made it sound as if the “professional help” is only referring to hired accountants: “That is why tax reform must dramatically simplify the tax code … and allow the vast majority of our citizens to file their taxes on a single, simple page without having to hire an accountant.”

“Our last major tax rewrite was 31 years ago. It eliminated dozens of loopholes and special interest tax breaks, reduced the number of tax brackets from 15 to two, and lowered tax rates for both individuals and businesses. At the time it was really something special … In 1986, Ronald Reagan led the world by cutting our corporate tax rate to 34 percent. That was below the average rate for developed countries at the time. Everybody thought that was a monumental thing that happened. But then, under this pro-America system, our economy boomed. It just went beautifully right through the roof. The middle class thrived, and median family income increased.”

Trump heaped praise on Reagan’s Tax Reform Act of 1986, which simplified tax brackets and eliminated tax shelters; it also lowered the top individual tax rate to 28 percent but raised the capital gains rate to the same level, giving them parity. But this is a rather strange flip-flop because Trump always has been a fierce critic of the bill, blaming it repeatedly for the savings and loan crisis, a decline in real estate investing and the 1990-1991 recession.

“This tax act was just an absolute catastrophe for the country, for the real estate industry, and I really hope that something can be done,” Trump told Congress in 1991. In a television interview with Joan Rivers, he said: “What caused the savings and loan crisis was the 1986 tax law change. It was a disaster. It took all of the incentives away from investors.”

Trump also frequently attacked one of the Democratic sponsors of the bill, Sen. Bill Bradley (D-N.J.), such as in a Wall Street Journal commentary in 1999. “Mr. Bradley’s last big idea to be enacted into legislation was also one of the worst ideas in recent history,” Trump wrote, saying Bradley was responsible for the elimination of a tax shelter for real estate investments. (He said the good parts of the bill could be attributed to Reagan.)

“We lost the jobs. We lost the taxes. They closed the buildings. They closed the plants and factories. We got nothing but unemployment. We got nothing.”

As Trump frequently notes, the unemployment rate in July was 4.3 percent — the lowest level in 16 years. So this overwrought language seems misplaced.

“We have gone from a tax rate that is lower than our economic competitors, to one that is more than 60 percent higher. … In other words, foreign companies have more than a 60 percent tax advantage over American companies.”

The United States certainly has one of the highest statutory corporate tax rates in the world, currently pegged as high as 39.1 percent when including state taxes. (The federal rate is 35 percent.) Trump says it is 60 percent higher than “our economic competitors,” comparing 39.1 percent to the average rate for the other members of the Organization for Economic Co-operation and Development, which is 25.5 percent when not weighted for GDP. (It is 29.6 percent when weighted for GDP.)

But the official rate does not necessarily tell the whole story. What also matters is the actual tax a company pays, after deductions and tax benefits. That is known as the effective tax rate, which can be calculated differently depending on the survey. According to the Congressional Research Service, the effective rate for the United States is 27.1 percent, compared to an effective GDP-weighted average of 27.7 percent for the OECD. “Although the U.S. statutory tax rate is higher, the average effective rate is about the same, and the marginal rate on new investment is only slightly higher,” the CRS says.

The Congressional Budget Office, when it examined the issue, said the U.S. effective tax rate was 18.6 percent, which it said was among the highest of the biggest economic powers, the Group of 20.

Trump, naturally, used the numbers that suggest the difference is really huge.

“Today, we are still taxing our businesses at 35 percent, and it’s way more than that. And think of it, in some cases, way above 40 percent when you include state and local taxes in various states. The United States is now behind France, behind Germany, behind Canada, Ireland, Japan, Mexico, South Korea and many other nations.”

As we noted, the statutory federal corporate tax rate in the United States is 35 percent, making the United States the highest among G-20 countries, including the countries Trump listed. But the effective corporate tax rate in the United States in 2012 was 18.6 percent, making it the fourth highest among G-20 countries, behind Argentina, Japan and Britain, according to the CBO.

“Because of our high tax rate and horrible, outdated, bureaucratic rules, large companies that do business overseas will often park their profits offshore to avoid paying a high United States tax if the money is brought back home. So they leave the money over there. The amount of money we’re talking about is anywhere from $3 trillion to $5 trillion.”

There are no official, current numbers on the profits held overseas by U.S. companies, just estimates. The White House would not respond to a query on where Trump is getting these numbers, but his high-end figure appears to be an exaggeration. The Internal Revenue Service in 2012 said the figure was $2.3 trillion, and the Joint Committee on Taxation estimated that it had risen to $2.6 trillion in 2015. There are other estimates as well, but none top $2.8 trillion, according to PolitiFact.

 

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Federal Judge Blocks Texas’ Ban on ‘Sanctuary Cities’

Judge Garcia appeared to block three provisions of the law, including one that stated that local government entities and officials may not “adopt, enforce or endorse” any policy limiting the enforcement of immigration laws.

Lawyers for those suing the state said prohibiting local officials from endorsing a particular viewpoint violates the First Amendment. Judge Garcia wrote that the plaintiffs were likely to succeed with that argument when the case goes to trial.

“The government may disagree with certain viewpoints, but they cannot ban them just because they are inconsistent with the view that the government seeks to promote,” Judge Garcia wrote. He added, “SB 4 clearly targets and seeks to punish speakers based on their viewpoint on local immigration enforcement policy.”

Some of the law’s most contentious provisions allow police officers to question the immigration status of a person whom they have arrested or detained, including during routine traffic stops, and create a system of harsh penalties for those who try to “materially limit” immigration enforcement, including removal from office for elected or appointed officials and criminal misdemeanor charges for sheriffs and other law enforcement officials.

In his ruling, Judge Garcia said that the law’s provision banning policies that limit enforcement of immigration laws was unconstitutionally vague and failed to define the specific prohibited conduct. The provision, the judge wrote, “ascribes criminal and quasi-criminal penalties based upon violations of an inscrutable standard, in a manner that invites arbitrary and discriminatory enforcement against disfavored localities.”

Texas vowed to appeal Judge Garcia’s decision, setting the stage for the case to be heard by the United States Court of Appeals for the Fifth Circuit, in New Orleans, one of the country’s most conservative appeals panels. Judge Garcia, who was appointed by President Bill Clinton in 1994, was a Democratic state lawmaker in the 1980s.

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Critics of Senate Bill 4, including the police chiefs in Houston, San Antonio and other large cities, said it would open the door to racial profiling of Hispanics and prevent legal and undocumented immigrants from reporting crimes to the police. Latino and civil rights groups call it a “show me your papers” law that echoes the one enacted by Arizona in 2010 that led to lawsuits and boycotts.

Supporters of Senate Bill 4 say that opponents have distorted its intent and potential impact. They said the law has a provision specifically prohibiting racial profiling and argued that a Supreme Court ruling in 2012 that upheld part of the Arizona law put the state on solid legal ground. The Trump administration’s Justice Department has also defended the Texas law, filing statements of interest in the case.

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“U.S. Supreme Court precedent for laws similar to Texas’ law are firmly on our side,” Mr. Abbott said in a statement. “This decision will be appealed immediately and I am confident Texas’ law will be found constitutional and ultimately be upheld.”

Civil rights lawyers and Latino groups praised Judge Garcia’s ruling, calling the law racist and unconstitutional.

“The court properly struck down virtually all of what was perhaps the harshest anti-immigrant provision in modern times,” said Lee Gelernt, who is the deputy director of the ACLU Immigrants’ Rights Project and who represents the border town of El Cenizo and other plaintiffs in the suit.

Judge Garcia upheld the law’s provision that police officers can ask about the immigration status of those they detain or arrest. But he blocked the provision mandating that local jurisdictions comply with immigration detainer requests from the federal Immigration and Customs Enforcement agency.

Judge Garcia said that by prohibiting local officials from declining a detainer request, the law also prohibited officials from questioning whether there was probable cause to support the detainer requested.

In his statement, the governor suggested that the judge’s blocking of that provision would make Texas less safe. “Because of this ruling, gang members and dangerous criminals, like those who have been released by the Travis County sheriff, will be set free to prey upon our communities,” Mr. Abbott said.

Critics of the law, however, including local officials in San Antonio, disagreed. “The city and the San Antonio Police Department have cooperated and will continue to cooperate with federal law enforcement’s reasonable requests,” San Antonio’s city attorney, Andy Segovia, said in a statement. “However, SB4 attempted to remove any discretion from local law enforcement in how to best serve the residents of San Antonio.”


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