Millward Brown Perspectives Vol. 6
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Millward Brown Perspectives Vol. 6

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Millward Brown has just published Perspectives, an annual compendium of our perspective on issues weighing on the minds of marketers around the world. This issue features thinking on the fast growing ...

Millward Brown has just published Perspectives, an annual compendium of our perspective on issues weighing on the minds of marketers around the world. This issue features thinking on the fast growing BRIC markets, neuroscience, and the art and science of brand building — from the importance of brand ideals to our newly launched "Meaningfully Different" framework — and how both create financial value for brand owners.

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Millward Brown Perspectives Vol. 6 Millward Brown Perspectives Vol. 6 Document Transcript

  • PerspectivesVolume 6
  • Dear Friends of Millward Brown,In today’s fast-moving digital world Millward Brown continually leverages newtechnologies.  For the past five years, we’ve published Perspectives, an annualcompendium of our perspective on issues weighing on the minds of marketersaround the world.  In our latest issue, we’ve gone mobile with the release ofour iPad magazine app, which we plan to update quarterly.  If you’re readingthis letter, you have already downloaded the app or the PDF from our website,and you now have the latest Millward Brown thinking at your fingertips.When I say we leverage new technologies, I mean that on so many more frontsthan just the mobile format we’re using to deliver thought leadership!  You’llsee that nearly half of the articles in this edition of Perspectives touch on therole of digital and mobile channels in brand building. We hope you’ll follow usclosely over the next year as we make a number of important announcementsabout our enhanced digital capabilities. We see 2013 as a particularly excitingyear on this front.This issue also features thinking on the fast growing BRIC markets,neuroscience, and the art and science of brand building – from the importanceof brand ideals to our newly launched “Meaningfully Different” framework –and how both create financial value for brand owners.As always, we’d love to hear from you regarding the pressing issues on yourmind.  Our goal is to use the collective learning and amazing talent of ourteams, and our vast data assets to help you answer the big marketing questionsof the day.  Please do reach out to me or to any member of our extended team– Millward Brown, Dynamic Logic, Firefly Millward Brown, and MaPS – withsuggestions on how we can best serve your evolving needs.With warmest regards,Eileen Campbell, Global Chief Executive Officer, Millward BrownEileen.Campbell@millwardbrown.comWelcometoPerspectives
  • ContentsVolume 6PointofViewPUBLISHEDARTICLESKNOWLEDGEPOINTSChangingChannelswithConfidenceCreativeStorytelling:ForSponsors,anOlympicSportIntegratedPlanning:StandingOutintheCloudWhatWeCanLearnFromIconicBrandsSocialMedia:FansandFollowersAreanEnds,NotaMeansWhyBrandPersonalityMattersChina’sTop50:MuchProgressButMoretoDoNotJustDifferentButMeaningfullyDifferentTheOverlookedPowerofMediaIdeals:TheNewEngineofBusinessGrowthMobile:AnEffective-YetUnloved-MarketingMediumEmergingLuxuryStrategiesEconomicGrowthDrivesBrandAwarenessTheRisingMiddleClassLargeandOpenMarketOpportunitiesBuzzMeansMoneyBrandPersonalityWhyOptimizationisPartDataandPartInstinctOnlineBuildsBrands,IfYouKnowHowChina’sBrandChallengeGlocalEvaluation:MeasuringEffectivenessTurningBigDataintoBrandDataTheFutureofSocialForBrandsTurnOn,TuneIn,WatchOutSocialMediaBestPracticesCreativeEffectivenessIsYourBrand’sMarketingStrategy2042-Compliant?ValueDriversModel:HowBrandsDriveValueGrowthDoesYourBrandNeedSocialMediaandBrandFans?EthnicTargetedMarketing:DoWeReallyNeedIt?IncreasingOurBrainpowerDoTVAds“WearOut”MarketinginUncertainTimesHowShouldVoiceoversBeUsedInAds?Aknowledgements
  • Point of View
  • While they are accustomed to changing thecreative content of their campaigns on a regularbasis, there is no automatic driver that encouragesthe adoption of new media channels, andmarketers themselves may be disinclined to makechanges. Changing established media allocationsis risky; weighing the options requires time andeffort. The fear of making the wrong decision canmake exploration seem daunting.But avoiding innovation carries its own risk.The world moves forward, and those who don’tadvance with it will be left behind. Marketersneed a way to embrace change without beingswallowed up by it. How can they manage thatprocess?In 2011, Jonathan Mildenhall, vice president of global advertising strategyand content excellence at the Coca-Cola Company, introduced his company’snew approach to investing in creative content. Coke is implementing amodel they call the “70|20|10 investment principle,” an adaptation of theestablished 70|20|10 protocol for apportioning resources or investment.iMildenhall explained that in its quest to double the size of its business by2020, Coca-Cola would apportion its communications spend as follows:• 70% would support low-risk, “bread-and-butter” content.• 20% would be used to innovate based on what has worked in the past.• 10% would fund high-risk content involving brand-new ideas.We think this approach makes a lot of sense. It has worked for Google, wherethe company implemented it as a way to manage innovation, applying 70%of its workforce effort to core businesses, 20% to adjacent products, and10% to highly experimental innovation for the long term.We expect it will also work for Coke as they innovate in developing theircreative content. Furthermore, we think that the application of 70|20|10 cango beyond creative content to media planning, specifically in terms of theallocation of resources to new channels such as mobile and social media. Infact, we believe so strongly in this approach that we are proposing it to ourclients as the framework they can use to“change channels with confidence.”DUNCAN SOUTHGATEGlobal Brand Director, DigitalJOHN SVENDSENGlobal Brand Director, MediaPoint of ViewNew media channels are emerging all the time, andmarketers are often unclear how to choose among themChangingChannelswithConfidence:AStructureforInnovation
  • A Structured Approach to InnovationAmara’s Law ii states that“we tend to overestimate the effect of a technologyin the short run and underestimate the effect in the long run.”The adoptionof a 70|20|10 approach is a way of counteracting both of these tendencies.However, the 70|20|10 model should not be considered a strict formula.The precise allocations are not important; what is essential is that somefixed proportion of spend is regularly devoted to innovation. This practicewill encourage forward thinking and experimentation in a disciplined andstructured way. By using such a framework, brands can steer a safe andprosperous middle path while evolving both their media and their researchbudgets.While 70|20|10 is new as a formal framework for media planning, somebrands have already experienced great success in applying its principles.One example is Sheilas’Wheels, a UK insurance brand targeted at women.When their first offering, car insurance, was launched in October 2005,the brand invested 30% of its TV budget into sponsoring drama. This wasconsidered innovative at a time when most insurance brands focused almostexclusively on TV spot advertising. This venture helped Sheilas’ Wheelsreach an awareness level of 75% just three months after launch, and tosurpass its internal sales targets by 65% during the first year. Sheilas’Wheelssubsequently expanded its sponsorship allocation, and in 2008, when thecompany launched its home insurance product, it made sponsorship itslargest platform by investing £10 million (equivalent to US$20 million) in oneof British television’s biggest sponsorships slots: the ITV National Weatherbroadcast. Thus in a short time, sponsorship became an important. 70%activity for the brand.The 70|20|10 Allocation70% – The Comfort ZoneFor most brands, the 70% zone of low-risk, bread-and-butter marketing islikely to involve established channels such as TV, print, outdoor, and radio.But this will vary across categories and countries. A strong FMCG/CPG brandin the United States might use TV, outdoor, online display, and online video.A brand in a considered purchase category in Germany might use print,sports sponsorship, online search, and online display. A new service brandin Japan might use TV, event sponsorship, mobile display, and QR codes. Forsome brands, the 70% could also include word-of-mouth marketing.But to say that 70% of the budget should fund communications in channelsthat are considered to be safe, familiar, and effective is not to say that 70%of a media budget should remain static from year to year. Based on ongoinglearning and evolving brand objectives, channel composition within the70% could vary significantly over time and from campaign to campaign.20% – Innovating Around What WorksInnovating around media approaches that are known to be effective couldinclude a broad range of options. It could mean taking a small risk, suchas increasing your spend on a channel that seemed to work well in your10% last year. It could mean spending behind a channel where you don’thave concrete research evidence of a return on investment. Or it could meantaking a risk in an established channel that is familiar to you, perhaps bysponsoring a sporting event for the first time when you have previouslybeen known for associations with music festivals.For many brands across a range of categories, social media currently fallsinto the 20% category. Brands have some practical experience and stronglybelieve in the exciting new ways social media allows them to interact withtheir consumers. But they still have questions about the return on theirinvestment, and they are still learning how to create and deliver campaignsthat are truly social by design.10% – Into the UnknownThe 10% zone is the place where genuine experimentation takes placewith new and emerging channels. But this risk-taking should be in line withbrand and campaign objectives; iPhone apps and Pinterest pages are rightfor some brands, but not all.For many brands, mobile currently falls into the 10% category. The mobilemarketing landscape continues to evolve as ownership of smartphones andtablets grows rapidly around the world, and questions abound about thebest ways to take advantage of these new opportunities.CokeUKisreportedtohavea“mobilefirst”mentalityintheirplanningprocess.Starting with the 10% not only ensures that 10% innovation happens; italso ensures that these projects are given due consideration and a chanceto play an integral role in the overall campaign, rather than being seen asafterthoughts.Point of ViewChangingChannelswithConfidence:AStructureforInnovation
  • The 70|20|10 AND RESEARCH BUDGETSResearch and measurement are key drivers of innovation, so the 70|20|10principleshouldbeappliedtotheresearchbudgetaswell.Table1summarizesthe goals and outcomes for both the media and research choices withineach of the three types of activity. However, as we stated at the outset, thecritical element of the 70|20|10 approach is the commitment to consistentlyallocate resources to new channels, even if the proportions are not exactly70|20|10. For research expenses, the proportions could vary widely, and theymight not be the same as the proportions used for media. For measurementof the 10% and the 20%, you may end up“overinvesting”if research needs tobe created specifically to measure the return from a new channel. To reallyunderstand how a new channel works, it may be necessary to spend as muchon research as on the media itself.However, we are not suggesting that researchers can afford to take theireyes off the 70%.Even when the media used are known to be effective, learning from researchmay call for incremental adjustments that will have significant effects. Andthere are very compelling arguments for investing in research that can helpto optimize the mix across channels.70|20|10 in PracticeWhen assessing how your current media budget stacks up against 70|20|10,it is important to consider all the costs involved in a particular channel.Projects in the 10% zone are likely to be relatively resource intensive evenif media costs are low. Therefore, to ensure that the 70|20|10 approach isapplied comprehensively and fairly across the full spectrum of paid, owned,and earned media channels, brands need to weigh all the costs associatedwith each channel, including not only hard media outlays but also the costof support, production, and organizational expenses.In large companies, experimentation may be spread across brand portfoliosor markets. One sub-brand may attempt an augmented reality campaignwhile another builds a mobile app. Pooling learning in this way improves thebreadth of experimentation possible and helps speed progress in identifyingthe channels most likely to move from the 10% to the 20% in future years.Research budgets will likewise go further if partners can be recruited.Media agencies, media owners, and research agencies all have an interest inunderstanding how new channels work and might be eager to participatein joint projects.ConclusionMarketersconsiderchanneloptimizationeverytimetheyplannewcampaigns.Some are actively involved in changing their channel mix, while others leavethese recommendations to their media agencies. Marketers that adopt a70|20|10 approach will know that new channels will be given a chance toshine and that their media plans will evolve through a systematic process.By overlaying a comparable approach to research planning, companies canensure that they extract maximum learning from this process. Marketingand insight-generation skills will evolve in parallel, and the ultimate resultwill be a meaningful difference in brand success.Point of ViewTABLE 170│20│10 for Media and ResearchComfort Zone(70)Innovate onWhat Works (20)The Unknown(10)GoalsReach targetwith intendedmessages.Extend bothreach andstrategy.See if it works!OutcomesCampaigndelivers asexpected againstplan.A familiarstrategy isextended, withsome ROI,some pleasantsurprises.Practical learningand ideas forthe future, withan occasionalrunawaysuccess.GoalsEvaluatecommunication/effectiveness ofmedia mix.Identify mediaimpact.Assess channelpotential/gainideas.Type ofResearchMainlyestablishedtechniques.Mix of newerand establishedtechniques.Brand-newapproaches,trial and error.OutcomesIncrementaloptimizationgains make alarge absolutedifference.Optimize/extenduse of channel.Winners andlosers identified(failure ofcampaign issuccessfullearning).ResearchMediaChangingChannelswithConfidence:AStructureforInnovation
  • Point of View
  • Beyondthetwoweekspackedwithexcitementandgood feelings, the 2012 London Summer Olympicsis set to leave its own lasting legacy for Britain andthe world.The Power of StoriesThe greatest legacy of the London Games, and of allOlympic Games, is in their stories. The stories thatunfold during the Olympics turn into legends thatstay with us and inspire future generations. Storiesmake us care. A powerful story can make us careabout a sport we’ve never watched, a person we’venever met, or a country we’ve never visited or evenlocated on a map.Among the stories we witnessed this past summer: American swimmer MichaelPhelps becoming the most decorated Olympian ever; South African swimmerChad le Clos—who was 12 years old when he was inspired by Michael Phelps in2004—beating Phelps in the 100-meter butterfly; Jamaican sprinter Usain Boltwinning gold in both the 100 and 200 meters (and leading the Jamaican sweepin that event); and South African “Blade Runner” Oscar Pistorius competing inboth the Olympics and the Paralympics. These athletes join icons such as trackand field star Carl Lewis, a gold medalist in four separate Olympics, and gymnastNadia Comaneci, still held up as an exemplar of perfection after scoring perfect10s in 1976.Marketers understand the power of stories. That’s why brands work so hardto bring out their own stories on the world stage, from Coca-Cola celebrating125 years of sharing happiness to Omega opening a museum dedicated to thehistory of its watch brand. Brands are more than products we buy. Brands areideas we buy into. Stories, more than any other marketing component, facilitatethat process of“buying in.”The Challenge of Olympic SponsorshipThe power to enrich brand equity by the values, stories, and associationslinked with the Olympic Games has brands forking out hundreds of millionsfor the privilege of being called Olympic sponsors. But successfully activatingan Olympic sponsorship presents a unique set of challenges. First, there is thechallenge of being heard among so many sponsors vying for attention at thesame time. Then there is the issue of relevance. How does a brand contributeto the Olympic ideal of “faster, higher, stronger”? How can sponsors prove thattheir brands are relevant to the Games?In their article “Building Brand Image Through Event Sponsorship: The Role ofImageTransfer,”published in theWinter 1999 issue of the Journal of Advertising,KevinGwinnerandJohnEatonrefertotwokindsofrelevanceforeventsponsors:function-based similarity, where the sponsor’s product is actually used in theevent, and image-based similarity, where the sponsor’s image is convergentwith that of the event.It is very easy for a sports brand to scorehighly on functional relevance. If weconsider the 2012 Olympic sponsors,Adidas was the only brand with a veryobvious and direct link to sports.As the Official Sportswear Partner ofLondon 2012, Adidas led the way atthe Olympic Games by outfitting more than 80,000 “Games Makers” (Olympicvolunteers) and supplying kit for 3,000 athletes. The brand’s “Take the Stage”campaign was very convincing, and Adidas was fortunate in being able tosponsor some highly successful Olympians, including gold medalists JessicaEnnis (heptathlon) and Bradley Wiggins (cycling). No wonder Adidas saw thehighest brand impact among the sponsors on many counts, including short-term sales pickup. Research by Nielsen found that Adidas was regarded asthe most inspirational and most empowering brand among all the sponsors,and social media research from Sociability identified Adidas as the brand thatcreated the most positive buzz during the Games.For brands that don’t have an obvious functional connection to the Olympics,it’s harder to justify the appropriateness of a sponsorship. This is where the trueart of marketing and creativity kicks in, especially in the form of storytelling. Bytellinggreatconvincingstorieswell,brandscancreateveryvisibleandsuccessfulsponsorship programs.This past summer, the various sponsors told their different stories in differentways, and some fared better than others. Here is my take on the results of theSponsorship Storytelling event:The bronze medal goes to:BMW, the Official Automotive Partner forthe London GamesThe story of BMW’s Olympic sponsorship is in the mileage it got out of productplacement opportunities. One achievement was the showcasing of 4,000 carsdressed in Olympic livery as“best in class”in terms of fuel economy. Even moreimpressive was putting BMW-owned MINIs in view of close to one billion peoplearound the world during the Opening Ceremony. But the real coup was theemployment of a fleet of radio-controlled miniature MINIs used at the track andfield events. In a stadium that was brand-and advertising-free, as many as 80,000spectators (not to mention the television audience) could see the adorable mini-MINIs retrieving javelins, discuses, hammers, and shots, saving time and effortand drawing smiles all around. On the back of this entertaining MINI-spectacle,BMW rapidly climbed the table published by CityAM, jumping from fifth to thirdplace by the end of the first week of the Games.Brands are ideas we buyinto. Stories, more thanany other marketingcomponent, facilitate theprocess of“buying in”Point of ViewAnastasiaKourovskaiaVice President, MillwardBrown OptimorEvery two years, the world stops to watch the greatest showon earth: the Olympic Games.The appeal of the Olympics isuniversal; its impact, tremendous, and the London 2012Summer Olympic Games were no exception.CreativeStorytelling:ForSponsors,anOlympicSport
  • The silver medal goes to:BT, the Official CommunicationsServices Partner for the London Games.The story of BT’s successful sponsorship has its roots in the company’s early andunwavering enthusiasm for London’s bid for the Olympic Games. BT not onlyprovided IT and technical expertise during the bid process, but also worked ina variety of ways to generate support for the bid among an ambivalent public.Then, after being announced as the OfficialTelecommunications Partner of theGames in 2008, they embraced the sponsorship opportunity, continuing tobeat the drum for the Olympics and Paralympics. Using minimal advertising,they based their strategy on Olympic-themed activities, among them thesponsorship of the National Portrait Gallery’s “Road to 2012” exhibition aswell as the sponsorship of a competition for would-be torchbearers. Theyconsistently celebrated milestones to the Games; the celebration of“1,000 daysto go” featured spectacular fireworks from the top of the BT Tower that werebroadcast around the world.It looks like BT’s strategy of focusing on activation and taking the Games to thepeople paid off, as on a modest budget BT generated over £60 million in media-equivalent coverage and engaged with tens of thousands of consumers.And the gold medal goes to:Worldwide Olympic Partner Procter & Gamblefor their outstanding multilevel campaignP&G took on a multilevel challenge with their sponsorship: to link both thecorporate name and a number of individual brands to the Games. And theymet the challenge with a brilliant and multifaceted campaign that garneredacclaim from many sources. The shining centerpiece of P&G’s effort was thecorporate“Thank you, Mom”campaign, which featured both the P&G umbrellaand individual brands. Ads that focused on“the hardest, best job in the world”paid tribute to mothers everywhere who sacrifice and work tirelessly to supporttheir children. “Mom-umentaries” that featured the stories of great athletes astold by their mothers ran on TV and could also be viewed on Facebook pagesset up for 29 countries.Brand-level campaigns continued with the theme of raising an athlete. Forexample, ads for Fairy Liquid informed us that it takes 20,000 meals (and dishes)to raise an athlete. A Pampers ad featuring beach volleyball gold-medalist KerriWalsh thanking her mom, Margie, achieved an unparalleled level of immediacyand relevance when it ran during the break of one of Kerri’s matches. Afterthe Games, Pampers is continuing its “Spirit of Play” campaign, which featuresOlympians and their young children.P&G’s laundry detergent Ariel starred in the “Proud Keepers of our Nation’sColors” campaign, which was localized for countries from Mexico to Turkey,Ireland to the Philippines. And as a Londoner, I was very impressed by the“P&GCapital Clean-up,” a branded version of the annual Capital Clean-up, in whichP&G sponsored a number of branded clean-up activities prior to the Games.LESSONS FOR ASPIRING SPONSORSIf you are a brand marketer who aspires to someday compete on the worldstage in sponsorship storytelling, what can you learn from the London Games?How can you emulate the most successful sponsors? We have the followingsuggestions.Make your brand a part of the storyNone of the brands on our medalstand had a functional connection tosports, but they found ways to weavethemselvesintotheLondon2012storyanyway. They looked for roles to befilled and created parts for themselves.BT was not only the communicationsspecialist, but also a lead cheerleader for the Games and for London. BMW notonly exploited the MINI’s heritage in evoking the home country’s pride, butcleverly created a functional role for the MINI. So whether you’re sponsoring thegiant slalom, the Soap Box Derby, or a regional spelling bee, work your brandinto the story of the event.Be creativeAs Dominic Twose points out in his POV “Creativity in Advertising: Eyebrows, aGreekBanquet,aViolin,andSomeInvisibleFish,”creativityaidsmemorability.Theright creative treatment can plant emotional associations so deeply that peoplesimply can’t forget them. The mini-MINIs delighted us and fixed an indelibleimage in our memories, linking the cars to the Games. The P&G ads showingpint-sized, baby-faced competitors preparing to dive off the platform or mountthe balance beam enabled us to see Olympic athletes as sons and daughters,and that vision filled us with pride—both vicarious pride in the upbringing ofour national champions, and real pride in the hard work of rearing our ownchildren (with the help of products from P&G). Find a new and different way tomake your audience emote, or at least smile, and you have a chance to form alasting impression.Go the distanceThe successful sponsorships were the result of expansive vision and sustainedeffort. BT started early and stayed in for the long haul. P&G extended its visionacross its brands—and rolled up its sleeves. It got behind the Capital Clean-up campaign, and in its home country, the United States, committed to raising$5 million to support youth sports programs. P&G may have sponsored theOlympics,butitusedtheopportunitytolendsupporttootherongoingcauses—national and civic pride, and support for young people.Whether you’re sponsoringthe giant slalom or theregional spelling bee, workyour brand into the story ofthe eventPoint of ViewCreativeStorytelling:ForSponsors,anOlympicSportWatch the‘Thank you Mom’ad (requiresinternetconnection)
  • Point of ViewThe Sponsorship Games: Play to WinAn Olympic sponsorship is a huge investment for a brand. And yet securing thesponsorship is just the beginning. Sponsorship rights are the steep entry feeyou must pay for the chance to get your brand’s name on the program.But tens of millions of dollars should buy more than just name recognition. Toform meaningful and lasting associations that will build your brand, you needto dig deeper. Invoke the story of the event and knit your brand into it. Createa relevant part for your brand, and the rewards will be great: When the race isover, your brand will be embedded in the compelling stories that form the coreof our Olympic memories.Invoke the story of the event and knit yourbrand into it. Create a relevant part for yourbrand, and the rewards will be greatCreativeStorytelling:ForSponsors,anOlympicSport
  • Point of View
  • In today’s world, it’s a certainty that brands willencounter numerous uncontrolled interruptions asthey try to engage and persuade people.We need tobetter grasp the reality of clutter and turbulence inthemoderncommunicationsworldandthedramaticeffects these phenomena have on advertisingimpact. And though the term “the Cloud” is alreadyfamiliar in the context of Internet-based computing,we think that a cloud is also an apt metaphor todescribethefluidandunpredictablemixofmessagesand influences that surround today’s consumers.ClutterIt is a general trend that more clients are using more media to communicate tomore consumers in more ways. As Internet penetration grows worldwide, sotoo do the opportunities to communicate, both for existing advertisers and fornew players who enjoy lower entry costs for marketing. Our estimates suggestthat Internet-enabled people experience at least 40 percent more display ads.How many messages are getting lost in all this noise?We all know about the evils ofTV advertising clutter, but for decades, even moreclutter has existed in radio, print, posters, and outdoor advertising. People havebecome acclimatized to it and have become very good at detecting tiny bitsof relevance buried in masses of irrelevance. In response to still more clutter,people simply—and unconsciously—gear up for a higher level of selectivity.And we have seen the results. We have seen the impact different levels of TVclutter have had across countries: The more clutter there is, the harder it is forthe average ad to cut through. Here the word“average”is important. Advertisingthat resonates with its intended target can significantly outperform weakercompetition. But producing better-than-average advertising may be easier saidthan done.TurbulenceIn the past, advertisers and their competitors would follow similar plans. Theywould battle for hearts and minds across the same territories and time frames.Today, however, the spread of messaging is becoming more diverse over bothmedia and time as clients mix individual campaigns with ongoing engagementprograms.Advertisers have made these adaptations in response to changes in consumerbehavior. Through social and search media, people have more ways to talk toeachotheraboutproductsandservices;nowadaysitiseasyforpeopletodotheirown research or get advice from experts. A simple online search reveals a vastnew wealth of options to explore beyond actually buying the major mainstreambrands. One shopper might decide to buy the shop’s own brand since someonetold her it was just as good. Another might be attracted by the offer of a fun-loving new category entrant. Someone shopping for vacation packages mightchange course midstream and decide to build his own holiday, while creativetypes might be inspired by an online forum to make their own hummus.At any stage on the path to purchase, a shopper might veer off in a differentdirection.There is no telling when or where a consumer might encounter a newidea or a competitive or confounding message. As my daughter would say,“Howrandom is that!”How do you manage communications in such circumstances?A New Model: Cloud ThinkingWe think marketers can still succeed in this new world, but success will requirea new way of thinking, which will lead to a different model of communicationand messaging. We think a different paradigm is needed, one that focuses notjust on the consumer and the media, but also on the environment in whichtoday’s consumers exist.In thinking about the complex infrastructure of tomorrow’s communications,we like the aforementioned metaphor of a ”Cloud.”The Cloud is the compositenoise surrounding every person. Each individual’s Cloud consists of all theinfluencesthatpersonisexposedtothatcouldpossiblyaffectbrandperceptions.These influences could occur at any time at any place through any mechanism.They include communication activities of the brand or its competitors, brandexperiences, things other people have said or written in the media, and in-storeSue ElmsHead of Global BrandsMillward BrownPoint of ViewThereisnotellingwhenorwhereaconsumermightencounteranewideaoracompetitiveorcofoundingmessageBusinesses spend a lot of money on brand communicationsbecause they know that effective communications arevital to brand health and wealth.The imperative is tobuild brand preference among consumers and to holdonto it in the long term. But the risk is greater than everthat communication will not hit home or that it will becounteracted by uncontrolled influences.IntegratedPlanning:StandingOutintheCloud
  • Point of ViewIn thinking about the complex infrastructureof tomorrow’s communications, we like theaforementioned metaphor of a ”Cloud.” TheCloud is the composite noise surroundingeveryperson.Eachindividual’sCloudconsistsof all the influences that person is exposed tothat could possibly affect brand perceptions.These influences could occur at any time atany place through any mechanism. Theyinclude communication activities of thebrand or its competitors, brand experiences,things other people have said or written inthe media, and in-store activities.The Cloud varies in density at different times and in different places, and iscontinually in motion as the prevailing winds blow items closer to and fartheraway from the person in the middle. The Cloud accompanies each personthrough all of his or her daily activities, good and bad, fun and boring, plannedand unplanned.“Cloud thinking” gives us much needed humility in thinking about people’sconsciousness of brands. At best, any one brand can make up only a very smallpart of a person’s Cloud, and the pressure it exerts there will depend on thefrequency of its contacts as well as the degree to which people experience thosecontacts as resonant.Communications Principles for the FutureThinkingaboutthecommunicationsinfrastructureasaCloudleadsustoidentifya few key principles of communication planning.Always understand the“now” of the brandStrong brands need to stand for something, especially in this new, complex, andinterconnected world. But the Cloud makes it difficult for them. In the Cloud, it isalltooeasyforevenstrongbrandstolosetheirclarity.Therearesomanypointsofcontact and so many conflicting impressions. So, as marketers focus on makingconnections with individuals, they need to remember that few brands, and evenfewer consumers, are truly “clean slates.” Consumers will always synergize theirbrand impressions against the prevailing associations in their personal Clouds.Uncovering these associations—which form the attitudinal backdrop for abrand—is the secret for brands hoping to resonate with consumers. This makesit vital to always know the “now” of the brand—that is, what this attitudinalbackdrop is. This is why tracking in one form or another will become evenmore vital as a marketing tool to understand the current intensity of people’semotions, knowledge, and experiences relating to a brand.Identify the center of gravityFor long-established brands like Coke and Harley-Davidson, attitudinalbackdrops will have been created in the pre-Cloud era and will gravitate towarda compelling center of gravity, such as a mass agenda or a brand ideal, thatenables people to instinctively recognize the brand and what it stands forthrough whatever brand impression they encounter. Such iconic brands maynot need to spend time and money on creating new mass agendas. But new orstruggling brands do—and they need to find a way to build and maintain thesein the Cloud.Plan for meaningful coincidencesSometimes people make intentional contact with a brand, as when they useit, buy it, research it, or discuss it with someone else (particularly when they’rein a seeking mode). The more often this happens, the better off the brand willbe—as long as the brand meets expectations after it has been sought out andacquired.Infact,forabrandnotto“bethere”whenandwherepeoplearelookingfor it is one of marketing’s biggest financial crimes.Historically, we have been able to rely on television advertising to “prime”consumers and encourage response to other brand activities. We have clearlyseen from CrossMedia evaluations that prior exposure to TV commercialssignificantlyimprovesresponsetootherbrandactivities;atthesametime,theseother brand activities deliver deeper connections than TV can do alone. Whena job is tough—like a launch or repositioning—we have seen how importantmultiple media exposure is. But in the new world, achieving these mediasynergies within a defined time period is going to be more difficult.A lot more effort will have to go into understanding people’s lives andfinding moments when they are “open” to the brand and when the brand’scommunications could be relevant to them. On the positive side, digital mediapresent increasing opportunities to be part of people’s lives in more placesand on more occasions, and should help advertisers by providing far morecontextually relevant opportunities to talk—e.g., on the bus, in a coffee shop, inthe pub, in a waiting room.Maximize the impact of every contactIt’s hard for brands to push or pull Cloud-enveloped consumers directly, soinfluence is more likely to come from small nudges as individuals run into amultiplicity of brand connections in different orders over time. Communicationswill have to give up the notion of storytelling in favor of facilitating the processthroughwhichconsumerspiecetogetheranoverall view from a long tail of connections.The challenge will be to ensure that anycombination of elements, encountered inany order, will be effective, and that anygaps in exposure (even someone skippingall TV ads) will not matter too much.Though their specific tasks may differ, eachimpressionmuststaytruetothecoreideaofthe brand, and must be designed to primeand recruit other impressions in the Cloud.It will be vital to find something that worksthrough every connection. Iconography,symbolism, idiom, and implicit communication will become far more importantto support the delivery of powerful and synergistic brand impressions.Throw away the“pseudo-scientific” media planInthefuture,marketingcampaignswon’thavediscretebeginnings,middles,andendings.Alreadyweseeamovefromcampaignstocontinuouscommunications.Alreadywehaveclientsaskingustoevaluateongoingsocialprogramsintegratedwith long-term brand content, as well as sponsorship programs combined withadvertising activity to boost specific tasks. While there will always be plenty ofscience in the evaluation of response to in-market exposure—digital mediameasurement ensures this—planning will need to become more creative,connected, and bold. Media planning will be about distributing various formsof brand content that will be relevant to people in different decision states,regardless of the order in which it is distributed. The end game will be“share ofCloud.” We certainly look forward to seeing visualizations of expected marketimpact that are far more inspiring than the current Excel worksheets of mediaresearch numbers!ConclusionCloud thinking helps us more easily embrace the complexity of the presentand future communications world, and embracing that complexity is essentialif we are to help brands succeed. Cloud thinking encourages planning that iscreative, connected, and bold, both within and across disciplines. As a result ofthis new way of thinking and the planning it generates, brands will be able tomake solid and genuine connections with consumers in an environment that isconstantly in flux. Through those connections, brands can build the strong andlong-lasting consumer relationships that lead to financial success.Communications will haveto give up the notion ofstorytelling in favor offacilitating the processthrough which consumerspiece together an overallview from a long tail ofconnectionsIntegratedPlanning:StandingOutintheCloudThe Cloud is thecomposite noisesurrounding everyperson. Each individual’sCloud consists of all theinfluences that personis exposed to that couldpossibly affect brandperceptions
  • Point of View
  • Yet among the mindless white noise of modernmarketing, a few brands stand out from the crowd.Admired and packed with meaning, these trulyiconic brands inspire passion and fierce loyaltyamong their customers. They represent the goldstandard of branding. Any marketer worth his saltwould die to work with an iconic brand—or betteryet, to help create one. But the process by whichbrands become iconic is often more accidentalthan designed.In his book How Brands Become Icons, former Oxford University professorDouglas Holt sheds light on the nature and origins of iconic brands. In thatwork, he asserts that iconic brands respond to a society’s desires and culturaltensions by drawing on their own unique myths and stories. However, theanecdotal nature of Holt’s approach makes his findings difficult to apply toless distinguished brands. And most brands cannot hope that a societal trendor need will suddenly make their brand meaningful and result in its beingadopted as a cultural icon. So what universal themes apply to all brands, notjust those that are already iconic? What guidelines can be applied to make anybrand more successful? This point of view seeks to address those questions.Beyond Recognition: Symbols and MeaningOne characteristic of iconic brands is that they are instantly recognizable. In my2007 POV on iconic brands, I cited the familiar shapes of Legos, the VW Beetle,and the golden arches of McDonald’s. The Oreo cookie, which turned 100years old earlier this month, is another example—the dark embossed biscuitssandwiching the white cream center make Oreos easily distinguishable fromany other cookie. Powerful visual cues such as these confer major advantages,but recognition alone does not constitute iconicity. Advertising icons such asthe Pillsbury Doughboy, the GEICO Gecko, and Aleksandr Orlov (the meerkatof comparethemarket.com) make their brands recognizable without makingthem iconic.The Oxford English Dictionary defines an icon as“a person or thing regarded asa representative symbol of a culture, movement, etc.; someone or somethingafforded great admiration or respect.” I believe this definition works well foriconic brands; it suggests that they must not only be easily recognizable, butalso stand for something that people admire and consider meaningful.In his book Brand Meaning, Mark Batey dedicates a lot of space to symbolism,which, according to Batey, is one of the constituents of brand meaning.Symbols like the Marlboro cowboy or the Harley-Davidson eagle stimulate theimagination and, through the power of suggestion and association, connectto ideas and values. It is the symbolic importance of an iconic brand’s identitythat enables it to leverage its recognition far beyond that of other brands.And, once recognition has been achieved, that symbolism helps ensure that abrand’s meaning is understood and shared across a wide audience.Meaningiscriticaltosuccessfulbrandsandtoiconicbrandsinparticular.Iconicbrands are not just distinctive; they are different in a way that is meaningful.The Oreo has a characteristic appearance, but it also stands out in people’sminds for the sensory rituals they associate with eating it (twisting the wafersapart and licking the cream, dunking in milk) and the warm feelings of sharingthose experiences with family and friends.Those good feelings are kept alive with adsthat show people interacting over Oreos:brother with brother, mother with son,grandfather with granddaughter. Theseidyllic depictions represent family life aswe might wish to experience it, and theyevoke a powerful response.The second of Douglas Holt’s iconic brandprinciples is that iconic brands developidentity myths that address people’s desires and anxieties. The Marlboroman represents the values of the Western frontier: He is strong, independent,and capable. By presenting a consistent image over time, the brand hascome to embody the frontier myth that now proves particularly appealingin developing economies. But Marlboro’s time as an iconic exemplar may benearing an end because, in Marlboro’s homeland, the nature of iconic brandshas changed. Instead of presenting identities that they grow into, some oftoday’s most iconic Western brands embody those identities from the start.Their identity myths have become experiential and vital. For example, RedBull was designed from the ground up to appeal to a specific mindset, and theenergy drink has been marketed with unique advertising and a wide varietyof adrenaline-inspired events.Powerful visual cuesconfer major advantagesfor brands, butrecognition alone doesnot constitute iconicityNigel HollisChief Global AnalystMillward BrownPoint of ViewTheeasilydistinguishableOreocookieIn today’s complex and busy world, brand names areeverywhere—plastered all over websites, insidesubway cars, on the sides of buses, and even in publictoilets. But most of the time, even though they’reaccepted as part of the scenery, these brand namesdon’t signify much to those who observe them.WhatWeCanLearnfromIconicBrands
  • A Compelling Brand ExperienceAn iconic brand is recognizable not because it has invested in decades of heavymarketing spend, but because it delivers a powerful brand experience that isfounded in the brand’s purpose. Oreos would not be iconic if people didn’tthink they tasted good. And no matter how aesthetically pleasing Apple’sdevices are, Apple would not be iconic if its user interfaces were clunky. As Holtproposes, iconic brands transcend functional benefits, but that does not meanthat they have ignored functional benefits (or that they can afford to ignorethem in the future).Therefore, in terms of evaluating a brand’s iconic potential,I would first look at the brand’s ability to meet a specific functional need. Abrand that can meet a need or gratify a desire in a unique and meaningfulway has an opportunity to build the strong emotional attachment that is thecornerstone of iconicity.‘Meaning is critical tosuccessful and iconicbrands.Iconic brands arenot just distinctive; theyare different in a way thatis meaningful’The “People’s Car”That Became an IconIn 1933, Ferdinand Porsche was charged by German chancellor Adolf Hitlerto develop a car for the masses. Critical requirements in the specs for theVolkswagen(literally,“people’scar”inGerman)includedtheabilitytotransporttwo adults and three children at 100 km/h (62 mph) and a price that wouldmake it affordable for average working people.Firstproducedin1938,theVolkswagenT1,laternicknamedtheBeetle,becameone of the most iconic vehicles of all time. The unique design was denigratedby some, but after World War II, the reliable, economical, and affordablevehicle was exactly what the impoverished people of Germany required.Those same characteristics later appealed to hippies and others who werepursuing alternative lifestyles during the 1960s. The Beetle appeared in manymovies and spawned a number of other nicknames, a sure sign of a brandthat’s embedded in popular culture. The 1998 reintroduction of the Beetlewas successful in large part because it tapped into those positive feelingswhile bringing the product up to date.The Power of PurposeIn combination with its quirky looks, the Beetle’s ability to meet people’stransportation needs kindled the public affection that ultimately made the caran icon. Look behind the symbolism of most iconic brands and you will findsomeone with a vision of how a product could serve a specific need betterthan the existing alternatives. When a brand’s purpose or ideal resonates witha particular group of people, the brand moves one step closer to becomingiconic.Google originated as a research project by Larry Page and Sergey Brin, aneffort to find a better way to rank the relevance of search results than simplycounting the appearances of a search term on a page. By redefining theway people used the web, Page andBrin addressed the need to “organizethe world’s information and make ituniversally accessible and useful.” Theintersection of the widespread needto find information quickly with thebetter solution offered by Google, whichincluded a simple and uncluttered userinterface, resulted in Google becomingthe success it is today.In his book Grow: How Ideals Power Growth and Profit at the World’s GreatestCompanies (published in 2011), former Procter & Gamble CMO Jim Stengeldescribes the common feature he identified across dozens of highly successfulbrands: a brand ideal. A brand ideal is a purpose that goes beyond a productor service. It’s the higher-order benefit that the business provides to the world,the company’s most fundamental reason for being. Pursuing a brand idealmay not make your brand iconic, but it can be one step along that road—astep that, by offering people something that makes their lives better, will alsomotivate your workforce and help to ensure a healthy profit.Point of ViewWhatWeCanLearnFromIconicBrands
  • Five Principles for the Everyday BrandReaching iconic status is the Everest of the marketing world, and the vastmajority of brands won’t reach its summit. That said, continually referencingand seeking to improve your brand’s performance against the followingprinciples can only bring benefits.(Re)discover and stay true to your brand’s purposeMany brands are founded and built around a specific purpose or ideal thatsubsequently fades from sight as leaders lose track of what originally madethe company special. In these cases, restoring the original focus can oftenturn a struggling brand around. But sometimes a company’s purpose has tochange because the world around it has changed, as when 20 years ago IBMshifteditspurposefrommakingcomputersandchipstobuildingasmarterandmore efficient planet.This sort of transformation requires a total commitment,as Louis Gerstner details in his book Who Says Elephants Can’t Dance? Thiscommitment includes the willingness to make changes to align structure withstrategy as well as ongoing reinforcement of the new purpose in both internaland external communications.Critically examine the experience yourbrand deliversYou can have the noblest purpose inthe world but still fail to deliver againstpeople’s expectations. For example,environmentally responsible (“green”)brands want to ensure a better future for our planet, but all too often theirfunctional performance fails to satisfy consumers, or their price is so high thattrial is inhibited. One brand, however, stands out from other green brands inthe way in which it not only meets but exceeds expectations. The householdcleaning brand Method packs a one-two punch: Its nontoxic and sustainableproducts are just as effective as traditional cleaners, and Method’s uniquedesign ethos enhances its products with packaging that is both distinctiveand beautiful. These qualities could help Method become an iconic brand.Identify the iconic elements of your brandIconicbrandsareinstantlyrecognizable.Howdopeoplerecognizeyourbrand?What are the specific cues that trigger recognition? Does your brand have adistinctive design? Which senses does your brand engage beyond just thevisual? A brand with powerful sensory cues has an intrinsic advantage overothers. Those cues ensure that positive associations come readily to mind andare linked to the right brand. Provided the same recognition cues are featuredin broadcast and in-store communications, they allow the brand to realizesynergies across marketing and sales channels.Balance the authentic with the contemporaryThepowerofabrand’sauthenticheritageisundeniable,butsotooisthepowerof being in sync with popular culture. One of the biggest challenges for anybrand is to stay contemporary without unnecessarily changing what the brandstands for. The brands that do this successfully manage to apply the storiesand values of their heritage to contemporary circumstances. For example,Jack Daniel’s, an integral part of today’s pop culture, features its heritage in itsadvertisements with scenes of the whiskey being made. Company-sponsoredmusicians and concerts that bring people together outside of the bar alsoreflect the spirit and backcountry myths of the brand.Stay focusedFaced with aggressive competition, fragmenting media, and ever fasterfeedback, brand marketers can be overly reactive. It may seem that doingsomething—even the wrong thing—is better than doing nothing. But if youkeep in mind what it is that your brand stands for, you can avoid this trap.Knowing what is truly meaningful to your customers will help you choose theright actions. By understanding the interests, desires, and beliefs of their coreconsumers, brands can bring people together and facilitate unprecedentedlevels of consumer engagement, pride, and activism. Red Bull, for example,focuses all of its events on the idea of uplifting mind and body, offering both aspectacle and an unparalleled experience that is true to the brand’s purpose.Build on Sound FoundationsEven if you never get to work with an iconic brand, as a marketer you canstill apply the principles that underlie the success of iconic brands to helpyour own brand grow its financial value. But before you invest your time intrying to apply these principles, take a good hard look at your brand’s product.Powerful symbolism and impactful advertising can’t overcome a mediocreproduct experience.Assuming the product foundation is sound, you can then safely turn yourattention to building a stronger brand. Make sure you understand your brand’spurpose, the character it presents to the world, and its unique set of sensoryand symbolic properties. Then find ways to amplify what the brand standsfor across all the potential touch points. The combination of a meaningfullydifferent experience and distinctive brand assets will strengthen what yourbrand stands for in consumers’ minds, and as that concept becomes strongerand clearer, your brand will be more attractive to new users and inspire moreloyalty among existing customers.TheRedBullenergydrinkhasbeenmarketedwithuniqueadvertisingandawidevarietyofadrenaline-inspiredevents‘You can have the noblestpurpose in the world butstill fail to deliver againstpeople’s expectations’Point of ViewWhatWeCanLearnFromIconicBrands
  • Point of View
  • But not everything declined. In the realm ofsocial media, the number of Facebook users grewdramatically, blog readership increased, and a newphenomenon called Twitter exploded onto thescene.It’senoughtomakeyouthinkthatusingsocialmediais the latest and best way to effectively build yourbrand. Many pundits suggest as much, and manybrands seem to be buying into the idea. Researchconducted in 2010 by Millward Brown and Dynamic Logic, in cooperation withthe World Federation of Advertisers, found that almost all marketers surveyed(96 percent) expected to invest more time and money in social media in 2011.However, only a quarter (23 percent) said they were confident about the returnsthey get on these investments.I think this uncertainty is warranted. Those who manage brands should lookbefore they leap. I believe that the race to utilize social media channels isrepresentativeofthesamesortofirrationalexuberancethatledthestockmarkettounprecedentedheightsandallowedpeopletohavefaithinincomprehensiblefinancial instruments. For many brands, large-scale investment in social mediacampaigns is likely to prove just as ill-advised and imprudent. In other words, Ithink we may be witnessing a social media bubble.The Power of Social MediaThere can be no denying that social media can be an incredible vehicle forchange. For example, in 2009, a Facebook campaign prevented X Factor winnerJoe McElderry from doing something the previous four X Factor winners haddone—reach the top of the UK music charts. The campaign was started byhusband-and-wife team Jon and Tracy Morter as a protest against X Factor’smonopoly of the Christmas chart.They encouraged people to buy“Killing in theName,” a 17-year-old track by American rock band Rage Against the Machine(RATM).The news media picked up on the story, causing thousands of people tojoin the campaign; the number of fans on the RATM Facebook page exceeded800,000 (more than Google, Pepsi, or Wal-Mart).What is more, those fans acted. In the crucialpre-Christmas week, “Killing in the Name” soldover 500,000 copies. While 19.5 million peopleviewed the X Factor finale and 6 million voted forMcElderry, only 450,000 bought McElderry’s“TheClimb.”What enabled the campaign to be successful?Global qualitative research conducted byMillward Brown Firefly has highlighted severalthings that drive people to use social media.People are looking for a sense of connectednessand belonging, for an entertaining diversion, andfor a sense of control. The issues of control andbelonging seem central to the RATM campaign.The effort had the authenticity borne of its grass roots. It was founded by realpeople advancing a real agenda, and that agenda was one that tapped into acurrent concern—the suspicion that“big business”was manipulating the publicpsyche for its own ends.The same concern helped ignite the Twitter storm centered on the phone-hacking scandal at the UK tabloid News of the World. Shortly thereafter, the168-year-old paper closed. Clearly there is power in social media—but canFacebook or Twitter empower a consumer brand in a constructive way as wellas they can give voice to social outrage?The Characteristics of Successful Facebook BrandsI undertook an analysis to address that question. I identified 12 brands thathave been held up for their effective use of social media: Southwest, Honda,VW,McDonald’s,PizzaHut,Subway,KFC,Dunkin’Donuts, Krispy Kreme, Starbucks, Coca-Cola, and Red Bull. I related the number offans these brands had on their Facebookpages (all had more than 250,000) to datafrom Millward Brown’s BrandZ database(specifically, U.S. data from 2009). I thencompared the results for these successfulsocial media brands with other brands inthe same product categories.My first observation was that the five different product categories attractedvery different numbers of fans. On average, the soft drink brands included inour BrandZ study had over 16,000 fans each while airlines had barely 1,000.But not everything declined. In the realm ofsocial media, the number of Facebook users grewdramatically, blog readership increased, and a newphenomenon called Twitter exploded onto thescene.It’senoughtomakeyouthinkthatusingsocialmediais the latest and best way to effectively build yourbrand. Many pundits suggest as much, and manybrands seem to be buying into the idea. Researchconducted in 2010 by Millward Brown and Dynamic Logic, in cooperation withthe World Federation of Advertisers, found that almost all marketers surveyed(96 percent) expected to invest more time and money in social media in 2011.However, only a quarter (23 percent) said they were confident about the returnsthey get on these investments.I think this uncertainty is warranted. Those who manage brands should lookbefore they leap. I believe that the race to utilize social media channels isrepresentativeofthesamesortofirrationalexuberancethatledthestockmarkettounprecedentedheightsandallowedpeopletohavefaithinincomprehensiblefinancial instruments. For many brands, large-scale investment in social mediacampaigns is likely to prove just as ill-advised and imprudent. In other words, Ithink we may be witnessing a social media bubble.The Power of Social MediaThere can be no denying that social media can be an incredible vehicle forchange. For example, in 2009, a Facebook campaign prevented X Factor winnerJoe McElderry from doing something the previous four X Factor winners haddone—reach the top of the UK music charts. The campaign was started byhusband-and-wife team Jon and Tracy Morter as a protest against X Factor’smonopoly of the Christmas chart.They encouraged people to buy“Killing in theName,” a 17-year-old track by American rock band Rage Against the Machine(RATM).The news media picked up on the story, causing thousands of people tojoin the campaign; the number of fans on the RATM Facebook page exceeded800,000 (more than Google, Pepsi, or Wal-Mart).What is more, those fans acted. In the crucialpre-Christmas week, “Killing in the Name” soldover 500,000 copies. While 19.5 million peopleviewed the X Factor finale and 6 million voted forMcElderry, only 450,000 bought McElderry’s“TheClimb.”What enabled the campaign to be successful?Global qualitative research conducted byMillward Brown Firefly has highlighted severalthings that drive people to use social media.People are looking for a sense of connectednessand belonging, for an entertaining diversion, andfor a sense of control. The issues of control andbelonging seem central to the RATM campaign.The effort had the authenticity borne of its grass roots. It was founded by realpeople advancing a real agenda, and that agenda was one that tapped into acurrent concern—the suspicion that“big business”was manipulating the publicpsyche for its own ends.The same concern helped ignite the Twitter storm centered on the phone-hacking scandal at the UK tabloid News of the World. Shortly thereafter, the168-year-old paper closed. Clearly there is power in social media—but canFacebook or Twitter empower a consumer brand in a constructive way as wellas they can give voice to social outrage?The Characteristics of Successful Facebook BrandsI undertook an analysis to address that question. I identified 12 brands thathave been held up for their effective use of social media: Southwest, Honda,VW,McDonald’s,PizzaHut,Subway,KFC,Dunkin’Donuts, Krispy Kreme, Starbucks, Coca-Cola, and Red Bull. I related the number offans these brands had on their Facebookpages (all had more than 250,000) to datafrom Millward Brown’s BrandZ database(specifically, U.S. data from 2009). I thencompared the results for these successfulsocial media brands with other brands inthe same product categories.My first observation was that the five different product categories attractedvery different numbers of fans. On average, the soft drink brands included inour BrandZ study had over 16,000 fans each while airlines had barely 1,000.I believe this is directly related to the number of people who are activelyinvolved with a category on a regular basis.The level of satisfaction with brandsin a category also seemed to correspond with the number of fans the categoryattracted. Only 18 percent of U.S. air travelers are satisfied with the brandsavailable to them, while 56 percent of soft drink buyers claim to be totallysatisfied with their brand choices.In using social media,people are looking for asense of connectednessand belonging, for anentertaining diversion,and for a sense of controlNigel HollisChief Global AnalystMillward BrownPoint of View‘XFactor’winnerJoeMcElderryThe last few years have seen some massive changesin our world.The financial bubble that reached itspeak in 2007 popped, leaving us to enjoy what hasbeen dubbed“The Great Recession.”The Dow Jonesplummeted, along with consumer confidence.Thesubsequent road to recovery has proved to be longand uncertain.Socialmedia:fansandfollowersareanend,notameans
  • Figure 1Successful social media brands tend to be stronger brands Presence Relevance Performance Advantage Bonding Successful Brands Other Brands816653445443372611 2My next observation was that in most categories, one or two brands attractedthe lion’s share of fans. Those brands are not necessarily the biggest or theoldest, but rather the ones with a distinctive positioning that sets them apartfrom competitors. For example, in the case of domestic U.S. airlines, Southwestis the dominant brand, followed by Virgin America, a newcomer to theUnited States. I believe that Virgin’scommitment to excellent service andcustomer satisfaction and its obviouscommitment to using social media arewhatenabledittodrawmorefansthanAmerican Airlines, United, or Delta.My final observation was that theplaying field did not appear to be levelfor brands competing on Facebook. Itseemed easier for some brands to gaintraction simply due to their product category and their positioning. But thereis an even larger obstacle to be overcome by many brands. Brands that arealready big and successful start with a major advantage in social media. Usingthe Millward Brown Brand Pyramid, I compared the composite brand equityof the two groups of brands (see Figure 1). The successful social media brandsstarted with 50 percent more Presence (familiarity with what the brand standsfor) and finished with five times as much Bonding (the strongest measure ofattitudinal loyalty).They had an average of 1.6 million fans each, while the otherbrands had an average of just 140,000 fans each. So the more loyal customersyou have, the more fans you tend to have on Facebook.Mass Exposure Is an Important Catalystto Social Media SuccessOne final element must be considered by brands thinking of marketingthrough social media: the need for mass media coverage. Most notable socialmedia campaigns have relied on the mass media to gain critical momentum.Analysis of Twitter by HP’s Data Central finds that mainstream media outletsact as feeders of the most popular trends, and regular Twitter users then actas trend amplifiers. The Rage Against the Machine campaign would likely havelanguished unnoticed by the vast majority of people if the traditional mediahad not picked it up and publicized it.The same is true of some of the classics ofviral marketing: Burger King’s“Subservient Chicken”benefited from widespreadmedia support, and Dove’s “Evolution” was boosted by a strong PR campaign.On its own, Twitter did not kill the News of the World, but it did help createenough noise to pressure advertisers into pulling their support from the paper.Integration of mass media and social media helps transcend the disparatepersonal connections that drive social media in order to achieve critical mass.In 2010, the meerkat Aleksandr Orlov was created to star in a TV campaign forthe UK financial comparison site comparethemarket.com. As of August 2011,Aleksandr had close to 800,000 fans on the Facebook page that was created aspartoftheadcampaign.Thecombinationoftightlyintegratedonlineandofflinemarketing heightened interest in the brand, drove traffic to comparethemarket.com, and increased quotes by 45 percent compared to the previous year.Beyond FacebookWhile Facebook is the biggest social media network, it is not a homogeneouscommunity, nor is it the only channel through which brands can connect withconsumers.Infact,MillwardBrownidentifieseightdifferenttypesofsocialmedia:pure plays, blogs, syndication, peer-to-peer (P2P), wikis and collaboratives,open source, tagging and rating, and consumer reviews. Each type servesdifferent purposes and audiences. Among the pure-play vehicles, a low-reach,high-engagement medium such as Twitter offers the chance to make that all-important ongoing and personal connection.But Twitter users aren’t using the channel to be informed about brands. Theyare using it because they want to hear from people. Brands with social mediasavvy know this and often designate a lead tweeter to represent the companyand engage people. Tony Hsieh, the CEO of online shoe retailer Zappos, is thearchetypal corporate tweeter. With his tweets, which cover a wide range ofsubject matter—from getting kids to eat vegetables to entrepeneurship to thesecret of living the good life—he engages people and gives them a sense ofpersonal connection with Zappos.Socialmedia:fansandfollowersareanend,notameansPoint of ViewIt is the big brands thatget the most out ofFacebook.The more loyalcustomers you have, themore fans you tend tohave on Facebook
  • Fans and Followers Have Their Own AgendasDynamic Logic’s AdReaction 2009 study found that while 59 percent of Internetusers are actively engaged with social networking sites, only 13 percent of thosesocial media users actively follow or keep up with brands via social networks.Those that do follow brands do so in an average of three categories, and theydo so to gain access to information, discounts, and giveaways.This presents a challenge for a brand.To pander to a small percentage ofyour target with discounts and added-value giveaways can undermine yourbrand’s status and profitability; whatyou should focus on is engagingpeople with new information andideas that improve the customerexperience.Build a Strong Brand and Fans Will FollowBecause people use social media to connect with people and brands that theyknow, respect, and admire, the social media make a great channel for engagingexisting customers. But fans and followers are not a means to building a brand;rather, they are an end. Social media can’t help build brands without the otheringredients that make brands strong: an effective business model, a great brandexperience, clarity of positioning, and the ability to disrupt the status quo in aproduct category.As I stated in my Point ofView“Make Friends, Don’t PitchThem,”creating a strongpresence in social media is a good vehicle for confirming a brand’s benefits andvalidating its commitment to its users. However, any marketers still consideringhow to construct a social media strategy that will build buzz, saliency, and adeeperengagementwithloyalbrandadvocateswoulddowelltoaskthemselvesthe following questions:Integration of mass mediaand social media helpstranscend the disparatepersonal connections thatdrive social media in orderto achieve critical massWhatever your chosen strategy is, remember:There is no substitute for creativityand consistency. Find an idea that will resonate with your target audience andis in keeping with your brand’s positioning. Promote what you do widely, inwhatever ways are most appropriate. Then listen to the response and respondin turn.Do people care enough about my brand and categoryto engage with it? If not, maybe social media is not apriority for you.What types of social media sites offer the mostpotential?What would be the best bet—a pure playor a blog? An active presence on multiple sites mightbe necessary to engage even a small proportion ofexisting customers.What value can your brand offer beyond freebies anddiscounts? Games, puzzles, and competitions werepopular means to engage people with brands longbefore the advent of social media. Remember:Whilesocial media may be a new communication channel,the motivations, interests, and desires of the peoplewho use it are not new, but the same as they havealways been.How do you sustain the initial engagement beyond asimple sign of affinity? Even large, successful brandsmust continually find new ways to engage fans thatare consistent with their basic appeal; otherwise thenovelty of“fandom”will quickly wear off.The researchconducted with theWorld Federation of Advertisersfound trust and transparency to be important toongoing engagement, while variation, innovation,and a reasonable frequency of posting keep fanscoming back for more.Socialmedia:fansandfollowersareanend,notameansPoint of View
  • Point of View
  • By combining key outputs of BrandZ andCharacterZ and examining them in light of GeertHofstede’s model of the dimensions of culture, wecan identify the brand characteristics that are mostlikelytoensuresuccessindifferentregions.Marketerswho hope to achieve global success for their brandsmust take heed of these findings and use them tomodulate the tenor of their brands’communicationacross local and global campaigns.What We Mean by Brand PersonalityWhen we speak of a brand’s positioning, we aredescribing the things that differentiate one brandfrom others.When we speak of a brand’s personality,we are describing the way a brand expresses andrepresents itself. In BrandZ, we have asked over500,000 people to describe brands using a set of 24adjectiveschosentocoverawiderangeofpersonalitycharacteristics. We then assigned each brand to oneof10archetypesaccordingtoitsdominantcharacter.Developed using semiotics and both qualitative andquantitative research, these archetypes allow us toreduce a vast array of brand personalities to a manageable number of well-defined and recognizable characters.Some global brands are characterized differently in different parts of theworld. For example, in Italy, Spain, and the UK, the Apple iPhone is viewed as aSeductress,butinAustraliaitisaJoker,andinJapan,aDreamer.Thisdiscrepancyhighlights the many factors that influence a brand’s personality. Not only doconsumers experience a brand’s marketing activities in light of their own values,traditions, and circumstances, but they also perceive personality traits throughthe lens of their cultural conditioning. Therefore it is imperative that marketerspay attention to the personalities their brands project; few characters have thepower to transcend all cultures.Figure 1: CharacterZ Attributes and ArchetypesBrand Strength Varies with Brand PersonalityIn BrandZ, one of the key measures of a brand’s strength is Bonding. Bonding isthe highest level of attitudinal loyalty; when people are bonded to a brand, theyfeelthebrandiscloser,moremeaningfullydifferent,andhencemorevaluabletothem.When we correlated Bonding with our set of brand personality attributes,we found a range of significant results—from high positive correlations tosurprisingnegativecorrelationsthatassociatedpersonalitytraitswithweaknessrather than strength.Two Global Success TraitsTwo of the 24 words used to describe personality correlated with Bondingsignificantly more than all the others: desirable and trustworthy. Though boththese words had strong correlations everywhere, their importance relative toone another did vary in some markets, as illustrated in Figure 2. Desirability,which embodies qualities such as allure, status, and exclusivity, is particularlyassociated with aspirational brands that have emotional resonance; it is anotably strong driver of Bonding in Latin markets such as Brazil, Mexico, andSpain. Trustworthiness, the attribute which underpins a consumer’s belief thata brand will deliver consistent quality, is an especially strong driver of Bondingin India, Russia, and Korea.The Role of Other Personality TraitsSome words, such as innocent and rebellious, tend not to be associated withthe most successful brands. For example, the word innocent is often used as adescriptor for brands that are neither well known nor well defined, while themost successful brands (according to Bonding) tend to have strong clarity ofassociations. Similarly, rebellious brandsare more likely to be seen as challengersthan as leaders. In Taiwan, being seen as toostraightforwardcannegativelyaffectBonding,suggesting that in that country, clevernessis appreciated by consumers. Table 1 showsthe countries for which each of these traits isnegatively correlated with Bonding.InTaiwan, being toostraightforward cannegatively affectBonding, but clevernessis appreciated byconsumersGrahamStaplehurstGroup Account DirectorBrands & CommunicationMillward BrownSuthapaCharoenwongseAssociate Account DirectorMillward Brown BangkokInnocentSweden, Spain, Mexico, Australia, Germany, Italy,Netherlands, Korea, USADifferentThailand, Netherlands, Sweden, Australia, Germany, USA, Canada, UK, Italy, JapanRebellious China, Taiwan, Korea, JapanStraightforward Taiwan, KoreaTable 1: Negative Correlations with BondingPoint of ViewFor many years, researchers have been using the concept of brandpersonality to help describe brands and understand how they relateto consumers. More recently, using data fromWPP’s BrandZ study, wehave looked at brand personality from a cross-cultural perspective anddemonstrated that there is a relationship between the way brandsexpress themselves in different countries and the strength of theconsumer relationships they generate.WhyBrandPersonalityMatters:AligningYourBrandtoCulturalDriversofSuccess
  • ItwassurprisingtofindthatdifferentpersonalitieshadanegativecorrelationwithBonding in some countries, since the role of marketing is to create difference forbrands. But evidently, a different personality is not the same as a meaningfullydifferentbrandexperience.Beingseenasdifferentinpersonalitytermssuggestsa lack of identification with consumers and some social or emotional distancefrom them. The brands that are perceived this way fit less comfortably into amarket.In the same way that the importance of trustworthiness and desirability variesfrom one country to another, the degree to which other traits drive Bondingalso varies across markets. The personality traits (other than trustworthy anddesirable) that your brand will find most useful in different markets are shownin Figure 2, below the country names. For example, friendly brands are moresuccessful in Brazil and India, wise brands do well in China and the United States,and brands that are creative are especially well received in Japan, Taiwan, andKorea.Cultural DimensionsMany of the differences we have observed in how people appreciate brands’personalities can be explained through the cultural dimensions theory putforth by Geert Hofstede, a researcher recognized internationally for havingdeveloped the first empirical model to describe and differentiate cultures. Hismodel includes the following five dimensions:• Power Distance: The degree to which members of a society accept andexpectthatpowerisdistributedunequally.Runsfromhigh(differenceaccepted)to low.• Individualism: The degree to which societies believe people share anobligation for the care of those outside of their immediate families. Runs fromhigh (obligations to close family only) to low.• Masculinity: The degree to which a society emphasizes the value ofachievement, heroism, assertiveness, and material rewards for success. Runsfrom high (these values are important) to low.• Uncertainty Avoidance: The degree to which the members of a society feelcomfortable with uncertainty and ambiguity. Runs from high (where peopleneed clarity and rules) to low.• Long-term Orientation: The degree to which a society believes that truthdepends on situation, context, and time. Where long-term orientation is high,people adapt traditions and are more likely to save, invest, and persevere.Three Countries with Contrasting Cultural PreferencesRussia,China,andtheUKvarywidelyintermsofHofstede’sdimensions(seeTable2).RussiaandChinabothscorehighonPowerDistanceandlowonIndividualism,but they are on opposite ends of the scale on Uncertainty Avoidance (whereRussia is high and China is low).The culture in Russia favors brands that are assertive and in control, whilealso appreciating brands with a friendly and caring nature. In China, respectfor authority, coupled with a long-term orientation, enables brands with wiseand trustworthy personalities to dominate. Brands with assertive, rebellious, orplayful traits are less likely to be widely accepted by society, although emerginggenerations of younger and more affluent consumers may change this.In the UK, where there is an emphasis on individualism, tolerance, and respectfor equality (evidenced by the low Power Distance score), we see fewer strongassociations between any particular personality trait and brand success. Thetwo traits with the most consistent relationship with strong brands are friendlyand generous.Implications for Global MarketersWhile global communications and other marketing levers can help ensure thata brand is positioned in a consistent way around the world, a single tone of voiceis unlikely to succeed in engaging consumers across varied cultures. Marketersneedtounderstandtheculturalcontextinwhichtheirbrandcommunicates;theymayfindthattheyneedtovarynotonlywhattheysay,buthowtheysayit.Thoughevery brand will face a unique situation due to a number of factors, includingproduct category and country of origin, the following recommendations applyto all brands:1. Personality can differentiate.The strongest brands are those with the mostwell-defined personalities. These brands have differentiated themselves by theway they relate to consumers as much as by functional or other aspects.2.Sometraitsarealwaysgoodtohave.Makesureyourbrand’scommunicationclearly shouts either desirable or trustworthy. Or, like BMW, DoCoMo, El CortesInglés, or Emporio Armani, you may choose to emphasize both.3. Give your brand a global personality check. Consider the culture in yourbrand’s country of origin and that of the country to which you’re marketing. UseBrandZ and CharacterZ to identify the brands that fit well in the specific culturesthat are most important to you.Brand Personality MattersBrand managers and advertising planners have long understood that theirbrands are differentiated by the way they address their customers. Our analysisgoes beyond this to show that emphasizing particular personality traits canstrengthen or undermine a brand’s competitive position. If your brand hasa particularly strong personality, you may need to adjust its tone of voice tomatch local cultural dynamics. Smart marketing practitioners will use researchto understand the role that their brands’personalities play in building consumerrelationships, and will apply that learning to maximize brand appeal around theworld.CreativeAssertiveStraightforwardMEXICOCreativeAssertiveStraightforwardFriendlyBRAZILCreativeAssertiveBraveSPAINIn controlWiseGenerousUSAIn controlCreativeCANADAFriendlyGenerousUKIn controlGERMANYAssertiveIdealisticGenerousSWEDENFriendlyAdventurousCaringINDIACaringWiseStraightforwardTHAILANDIn controlGenerousAUSTRALIACreativeTAIWANCreativeWiseKindKOREACreativeFunJAPANWiseCaringCreativeStraightforwardBraveCHINAIn controlKindCreativeITALYStraightforwardFriendlyNETHERLANDSAssertiveIn controlFriendlyCaringRUSSIAIn controlAssertiveCreativeFRANCEDesirable more importantBoth equally important+ other traits in order of importanceTrustworthy more importantFigure 2: Personality Traits Associatedwith the Most Successful BrandsHigh LowRussia Power Distance,Uncertainty AvoidanceIndividualismChina Long-term, Orientation, Power,DistanceUncertainty, Avoidance,IndividualismUK Individualism, Masculinity Power Distance,Long-term, OrientationTable 2: Selected Dimensions for Russia, China, and the UKPoint of ViewWhyBrandPersonalityMatters:AligningYourBrandtoCulturalDriversofSuccess
  • Point of View
  • Whiletheyaregrowingwellathome,China’sdevelopingbrandsfaceaverydifferentenvironmentoutsideofChina.In developed markets, these brands need to sharplyincrease their levels of awareness and penetration. Butbeyond that, to actually achieve profitable growth,Chinese brands need to provide consumers with anexperience that is meaningfully different.As we have seen in previous years with the BrandZGlobal Top 100, the share prices of strong brands greatlyoutperform the average. This year’s China Top 50 rankingprovides another example of the value of this“brand gap.”(See Figure 1.) While the MSCI China Index registered a 6percent loss over the past 15 months, the China Top 50brands were up 20 percent.The New China: Fertile Ground for BrandsDecember 2011 marked the tenth anniversary of China joining theWorldTradeOrganization, and some observers say that a hundred years’worth of societaland economic transformation has occurred in the decade since. Nearly 300millionnewmiddle-classconsumershaveemergedtocreateagrowingmarketthat has allowed new brands to become established extraordinarily quickly.Six of the brands in the Top 50, collectively worth US$50 billion, didn’t evenexist 10 years ago, while more than half the brands in the Top 50 were createdafter 1990.Some observations about this year’s ranking reveal the dynamic environmentin which Chinese brands are thriving.Privately held brands are growingTheentrepreneurialnatureofChinesebusinessshowsupintherelativegrowthin value of privately owned brands. These brands make up the majority (two-thirds) of the Top 50, and they grew 27 percent year-on-year, compared to amere 13 percent for state-owned enterprises (SOEs). However, the privatelyheld brands have a considerable way to go to match the dominance of theSOEs, which currently account for 70 percent of the value of the Top 50 brandsand occupy eight of the top 10 positions in the ranking. (See Table 1.)Point of View40%35%30%25%20%15%10%5%0%-5%-10%Jul ‘10 oct ‘10 jan ‘11 apr ‘11 jul ‘11 Figure 1: BrandZ™ China Portfolio vs. MSCI China (July 2010 to Sept 2011)+20%+20%–6%–6%Source: Bloomberg: MBOptimor London AnalysisBrandZ™MarketBrandZ™ Portfolio; Top 50 Chinese BrandsMSCI China indexPekingTanR&D Director, GreaterChina, Millward BrownPeterWalsheGlobal BrandZ DirectorMillward BrownBrand Field Value(USD Millions)% Changefrom 20101 China Mobile Telecom $53,607 -42 ICBC Financial $43,910 +153 China Construction Bank Financial $21,981 +14 Bank of China Financial $18,643 -175 Agricultural Bank ofChinaFincancial $17,329 +56 Baidu Search Engine $16,256 +677 China Life Insurance $15,253 -178 Sinopec Oil & Gas $13,791 N/A9 PetroChina Oli & Gas $13,755 -310 Tencent Internet Service Portal $12,624 +3Table 1: The China Top 50 – First 10 BrandsIn contrast to the top 10 brands overall, the Top 10 Risers (the brands with thebiggestincreasesinvalue)—arenearlyallprivate.(SeeTable2.)WebportalSinaheads this list with a dramatic increase of 244 percent over last year. Searchengine Baidu, though it grew by a smaller percentage (67 percent), registeredthe biggest increase in actual dollars. It added $6.5 billion to its value—morethan the combined values of the bottom 12 brands in the ranking.Top risers reflect improved living standardsThe fastest-growing brands come from categories that have benefited fromincreases in discretionary spending. In addition to the two Internet brands,the Top 10 Risers include three alcohol brands, two herbal remedy producers,two food brands, and a manufacturer of air conditioners.As Chinese brands have continued to steadily increase in value, the proportionof earnings that are driven by brand and consumer preference has also edgedup. In comparing the Top 50 rankings from 2010 and 2011, we observe that 16brands improved their brand contribution scores while none declined.Thebrandcontributionscoredescribestheextenttowhich“brand,”asopposedto factors like price and location, is responsible for earnings. The increase inthese scores is a reflection of the fact that Chinese consumers are becomingmore informed and discerning about brands. Exposure to multi-nationalbrands has raised their expectations of quality and value, and Chinese brandshave answered this challenge with some real achievements in brand building:improvements in innovation, marketing, image building, and the ability tokeep pace with rapidly changing consumer expectations.Brand Field Value(USD Millions)% Increasefrom 20101 Sina Portals/E-Commerce $1,905 2442 Fulinmen Cooking Oil $380 1383 Tong RenTang Pharma $1,026 894 ChangYu Alcohol $3,223 775 Baldu Portals/E-Commerce $16,256 676 Mengniu Food & Dairy $3,446 667 Wu LianYe Alcohol $4,037 658 Gree Air Conditioning $1,632 589 Moutai Alcohol $9,129 5810 Yunnan Baiyao Pharma $1,897 49Table 2: The China Top 50 – Top 10 RisersThe recently released ChinaTop 50 ranking once againconfirms the value of a strong brand and highlights theremarkable growth of China’s economy over the pastdecade. But it also provides an opportunity to define someof the specific challenges currently facing Chinese brands.China’sTop50:MuchProgressButMoretoDo
  • Outside of China: Chinese Brands Lack RootsThough they have made great strides in China, most Chinese brands are stillrelatively unknown outside of China. Across the Top 50, foreign earningsaverage less than 5 percent. Millward Brown’s “Going Global” study helpsto put those earnings figures into perspective. The staggering finding fromthat project, which investigated knowledge of Chinese brands in several keymarkets outside of China (including India, Malaysia, Australia, South Africa,the UK, and the United States), was that, overall, 83 percent of respondentscould not name a single Chinese brand.Among the few brands that did have name recognition was PC maker Lenovo,unusual among Chinese brands in that 50 percent of its sales come fromabroad.Anotherrelativelywell-knownChinesebrandwastheappliancemakerHaier. Respondents also had some knowledge of Tsingtao beer and Li-Ning,the sports shoes and apparel brand.So it seems that the first challenge facing China’s brands as they venture intoglobal territory is to gain familiarity. However, to compete effectively againstestablished brands in well-developed markets, they also need to establish ameaningful point of difference.How Difference Drives Value GrowthAnalysis of the BrandZ database, both in China and elsewhere, confirms thatthose brands that offer a meaningful difference are the ones most likelyto achieve profitable growth. Offering an experience that is meaningfullydifferent can enable a brand to support a price premium or to capture a higherproportion of sales at a price that is on par with the market.Figure 2 shows an analysis that relates people’s perceptions of the qualities of“meaning”and“difference”tobrandcontributionscores.InBrandZ,wemeasuredifference directly, with the attribute “different than others.”We captured theconcept of meaning through a combination of the attributes ”high opinion”and “appeal.” We took the 1,172 Chinese brands measured by BrandZ from2008 to 2011, split the brands into three groups (according to tertiles) on bothdifference and our composite measure of meaning, and then calculated theaverage brand contribution scores for each of the resulting nine groups.Thethreeredboxesintheupperrightcontaintheindexesforbrandsthat scorehigh on difference or meaning or both. Note that these numbers are far higherthan those in the other boxes.The brands that are high on both difference andmeaning index at 143; thus they have an average brand contribution scorethat is 43 percent higher than average. The brands that are high on meaningand in the middle group on difference index at 130, while those that are highon difference but in the middle third on meaning also index much higher thanaverage at 121.Conversely, being in the bottom third of brands on either or both dimensionsleads to significantly lower scores on brand contribution. The group that islow on both has an index of 55. Note that even the brands in the top third ondifference had relatively low brand contribution scores when they scored inthe lowest third on meaning, indexing at 85.Point of View85 121 14373 100 13055 83 104HighMediumLowDifferenceLow Medium HighMeaningFigure 2: The Impact of“Brand”on SalesAverage Brand contribution Scores (Indexed)BrandZ™ China 779 brands 2009-2011 (Average = 100)85 121* 143*73 100 130*55 83 104HighMediumLowDifferenceLow Medium HighMeaningFigure 3: Distribution of China Top 50 on Meaning and DifferencePercent of brands in each group*50% of the Top 50 are strong on one or both elementsChina’sTop50:MuchProgressButMoretoDo
  • When we narrow our focus from all Chinese brands to the China Top 50, wesee another example of Chinese brands moving in the right direction. Theaverage brand contribution score for the China Top 50 improved from 118 in2010 to 124 in 2011. This narrows the gap between the China Top 50 and theGlobal Top 100, for which the average brand contribution score in 2011 was129.Another difference we observe between the China Top 50 and the GlobalTop 100 is in the distribution of brands across the nine boxes. Only half theChina Top 50 brands appear in one of the three upper-right-hand (red) boxes,compared to 70 percent of the Global Top 100 most valuable brands. So eventhough Chinese brands have made great gains, they can still improve oncreating differentiation and meaning.Some Meaningfully Different China Success StoriesA meaningful difference is one that is considered to be important—one thatprovides a brand with a meaning that is likely to influence brand choice. AsNigel Hollis said in his January 2012 POV“Not Just Different but MeaningfullyDifferent,”brand meaning can originate from many different sources: heritage,function, style, and price are a few of the possibilities. Therefore, a meaningfuldifference might be a tangible product-oriented quality, or it might be anintangible emotional benefit.Whetheritistangibleorintangible,ameaningfuldifference is a difference that is significant and influential.Some of the brands in the China Top 50, most notably those among the Top10 Risers, have done a great job of establishing a meaningful difference andshould provide inspiration to other developing Chinese brands. Sina (No.25 overall, No. 1 among the Top 10 Risers) has distinguished itself throughinnovation by creating a micro-blogging site, Sina Weibo. With 227 millionusers posting 86 million messages each day, Sina Weibo offers somethingunique and valuable to consumers and has helped rejuvenate the Sina brand.Heritage can be another key differentiator, and Chinese brands have a rich andunique tradition on which to draw. Tong Ren Tang (No. 36 overall, No.3 amongtop risers) is a traditional Chinese medicine manufacturer that was establishedover 340 years ago. Herbal remedy producer Yunnan Baiyao (26/10) leveragesChinese medicine by incorporating the ancient baiyao powder, which stopsbleeding, into modern products such as toothpaste, bandages, and skin-carecreams.Trust is a critical issue, particularly for food brands, because of a number ofqualityissuesandscandalsinrecentdecades.BothFulinmen(47/2),theleadingcooking oil and rice producer, and Mengniu (18/6), a maker of dairy products,have benefitted from clear communication of their healthy provenance.Fulinmen has projected the caring and protective image of a wise mother,while Mengniu has connected the consumption of dairy products with thestrength of the Chinese people.Outlook for the FutureThe BrandZTM China Top 50 brands 2011, collectively worth US$325 billion atthe time of the study, testified to the fact that strong branding is the result ofproviding a great product experience and developing a trusted relationshipwith customers. But even though Chinese brands have made remarkableprogressoverthepast10years,theyhavemoreworktodoiftheyaretocompeteeffectively in global markets. They must increase their strength in their homemarket by continuing to build perceptions of meaningful difference in theface of increased competition from multinational brands. Outside of China,they need to raise awareness and communicate their meaningful differenceat the same time, and in so doing they must take into account the varyingmindsets and attitudes toward brands that exist in other countries. A one-size-fits-all marketing plan will not be effective. However, the China Top 50ranking showcases a number of Chinese brands that are acquiring and honingthe skills that will make them successful overseas.Point of ViewChina’sTop50:MuchProgressButMoretoDo
  • Point of View
  • You may have some trinket or memento onyour desk as well—something that doesn’t haveany practical purpose and appears insignificantto others, but is meaningful to you. Your uniquehistory with the object makes it special.I think the fact that we can form such attachmentswith relatively inconsequential objects illustratesa too-often-overlooked concept that is importantfor brands and brand marketing: the conceptof meaningful difference. A presentation I sawrecently, created by the agency BBH, also focuses on the concept of difference.Thepresentationproclaimedthatthe“classic”communicationsmodel,inwhichcommunication that is relevant, different, and motivating leads to behavioralchange, has given way to the “insight” model, in which changes in behaviorare effected by communication that is simply relevant and motivating.“We have forgotten the power of difference,” BBH asserted. I am afraid thatthey are right—and that this amnesia applies to both communication andbranding. Many marketers today valuerelevance to the exclusion of difference—and to the detriment of their brands.Yet those who first demoted “difference”from its place of honor in communicationsmay have done so for the right reasons.Theymayhaverealizedthatbeingdifferentfor the sake of being different was of littlevalue. But the mistake they made wasto throw out difference altogether and switch their emphasis to relevance.Successful brands are both relevant and different—but they are also morethan that. Successful brands are meaningfully different.So what’s a meaningful difference? I think of it this way. We humans find itimpossible to judge anything in isolation. We tend to compare things to veryclose alternatives.So a difference, a factor that distinguishes one item from another, gets ourattention. And while a difference may be apparent to most people, it won’tseem important to everyone. A meaningful difference is one that is consideredto be important—one that provides a brand with a meaning that is likely tohave an influence on a person’s brand choice.Brand meaning can originate from a multitude of sources. It could come fromyour personal history with a brand; for example, you might use the samebrand of detergent that your mother used. Or it could come from functionalcharacteristics; you might really like the intuitive interface of that tabletcomputer. You might be attached to your car because you think it looks hotor because it is economical and saves you money. Or a brand’s meaning foryou might simply be that it is familiar when others are not. Meaning canbe functional and tangible or emotional and intangible or all of the above.Meaning is in the eye of the beholder.Nigel HollisSVP and Chief Global Analyst,Millward BrownPoint of ViewMany marketers todayvalue relevance to theexclusion of difference -and to the detriment oftheir brandsFor many years, a smooth green stone has sat on my desk. It’sa piece of serpentine that I was given when, as a small child, Ivisited an artist’s workshop in Scotland.Truthfully, it’s a prettyunremarkable rock, and I doubt that anyone else would find itinteresting, but it means something to me.NotJustDifferentbutMeaningfullyDifferent
  • The Value of Meaningful DifferenceRelevance is important. Millward Brown’s BrandDynamics™ equity modelshows that those who find a brand relevant—that is, who admit that the brandoffers something they want or need at an acceptable price—are four timesmore likely to purchase it than those who don’t. But because, on average,across a range of categories, people find as many as six brands to be relevant,they still need additional reasons to choose among them.When people go beyond relevance to “bond” with a brand (“bonding” isthe strongest degree of consumer affinity defined by BrandDynamics), theybelieve that the brand satisfies their needs better than others in the category.People who bond with a brand are over five times as likely to buy the brand asthose who simply consider it relevant.What drives people to bonding? Recent analysis suggests that “meaningfuldifference” is a critical factor. People who cite three key advantages of abrand—that it is different, that it is more appealing than others, and that theyhave a higher opinion of it—tend to have the highest predicted probability ofpurchase. In other words, they consider the brand to be different in a“good”or“meaningful”way.The same three attributes are an integral part ofVoltage 2.0,a metric that has been proven to relate to both a brand’s ability to command aprice premium and the likelihood of future growth in market share.How Can Something So Small Be So Important?Inmyrecentpointofview“ItIsNotaChoice:BrandsShouldSeekDifferentiationand Distinctiveness,” I cited a statistic from our BrandZ database about“difference.”I said,“Among those that consider a brand acceptable, an averageof 18 percent agreed that it was different from others … (Note: At this level,‘different from others’ is one of the most discriminating attributes within ourdata set.)”Several people have commented that an average of 18 percent does not seemvery high. And it’s unfortunately true that one of the heuristics by which weoperate as humans is that big numbers seem more important than smallones. But actually, the fact that the majority of brands are not consideredto be very different from each other makes “different” a very discriminatingelement. “Different” is not a generic, applies-to-every-brand-in-the-categoryattribute. It is not an insipid, I-want-everyone-to-buy-me attribute. Instead, itis a characteristic that sets the brand apart and gives it the ability to attractnew buyers while commanding a price premium.What Is a Meaningful Difference?What really constitutes a meaningful difference, especially in developedmarkets where most brands are functionally equivalent? As I said earlier, ameaningful difference is one that is significant and influential. It might bea tangible product-oriented difference, or it might be an emotional andintangible difference. A difference that may seem trivial to some people may,for others, add that extra something that makes them choose that brand overothers. A brand like Coca-Cola is unlikely to change its formulation, particularlyafter the debacle of New Coke. Instead, Coke works single-mindedly to createintangible differentiation through creative campaigns that focus people’sattention on the brand’s reason for being. The “Open Happiness” advertising,“My Coke”Rewards, and the brand’s engagement with social media all remindpeople of what Coke stands for. They layer new and renewed meaning ontoa long-established and dominant brand. As a result of this communication,ardent fans continue to believe that there is simply no substitute for theirfavorite soft drink.This points up the roles that “difference” and “relevance” play in determiningpeople’s conscious responses to advertising. Perceived relevance is afundamentalfactorindeterminingwhetherornotpeoplefindanadpersuasive,but it is not the only one. When people say that an ad has made them morelikely to buy a brand, they are also likely to say that the message was relevant,new, credible, and different. Newness—that is, new news—is important inchanging people’s minds about a brand, while credibility and difference boostan ad’s motivational potential.Point of ViewCoca-colaworkssingle-mindedlytocreatedifferentiationthroughcreativecampaignsNotJustDifferentbutMeaningfullyDifferent
  • This said, it is critical to note that persuasion is just one route to sales success,and it tends to be a one-off event. Recent analysis conducted by my colleaguesDominicTwose and PollyWyn Jones suggests that highly creative ads can havea more enduring effect than ads that are more persuasive but less engaging.Building on previous analysis that demonstrated the connection betweensales effectiveness (both long- and short-term) and an ad’s ability to generatebrand-linked memorability (which we measure using the Awareness Index),Polly and Dominic studied ads that were recognized with IPA Awards forbeing highly creative. They observed that these highly creative ads, whetherthey were especially persuasive or not, scored high on the Awareness Index,and thus were likely to generate sales. So perhaps what is most important forlong-term success is ensuring that a brand remains salient through creativeand engaging advertising that reminds people what the brand stands for.Small differences, even intangible ones, can have big effects in relativelyundifferentiated categories. The Old Spice campaign, “The Man Your ManCould Smell Like,” was different not only from previous Old Spice campaigns,but also from any other campaigns for male grooming products. In pushingthe brand into new territory, the campaign risked being seen as inappropriateto the brand and category, but instead its tongue-in-cheek humor managedto engage a new young audience, thus reframing the brand and boosting itsgrowth. But the Old Spice campaign didn’t work by making people note thebrand’s “relevance” and immediately add the product to their shopping lists.Rather, it gave them a moment of amusement, which they probably forgotabout almost immediately. But later, when they noticed the brand on theshelf, that amusement, whether consciously remembered of not, made thebrand different—and for some people, that difference was enough to makethem choose it. Meaningful Difference Is Ongoing, Not One-offAn intangible difference rooted in advertising memories can be enough toget someone to try a brand. But to finish the job of winning over a new user,a brand has to deliver a rewarding experience. A positive experience willconfirm the user’s belief in the brand’s unique value, perhaps to the extent ofsupporting a higher-than-average price.In this way, I believe that brands are like my lump of serpentine. They startout with a meaning that is fresh, new, and specific, based on when and howwe first encounter them. Then, over time, familiarity and experience layeradditional significance onto them. Some of that added significance may bequite tangential to what originally motivated our interest in the brand, but it’slikely to be important to us nevertheless, just as the meaning that has accruedto my lump of serpentine over the years is important to me. So one of the mostcritical things a marketer can do is to continue to add meaning to a brandover time through events, sponsorships, and compelling communication.It is when a meaningful difference is conveyed and delivered in a way thatresonates with consumers that attitudes and behaviors can be affected.Meaning, Not Relevance, Is theDifference MakerWhen we study today’s most profitableand successful brands, the importance ofmeaningful difference becomes obvious.The world’s strongest brands are notthe ones that are most relevant. On thecontrary, the most successful brands don’ttry to be all things to all people. Apple’sshares of the computer and mobile phonemarkets are still relatively small, held in check by the price premium Applecommands. But Apple sits near the top of the BrandZ Top 100 Most ValuableBrands ranking. Burberry and Tiffany have both delisted cheaper items thatwere attracting the “wrong” type of customer. And sometimes customersmake their own choices. Not everyone wants to shop at Wal-Mart.Relevance, on its own, is not a difference maker. It’s necessary but not sufficientfor brand success. Relevance alone won’t motivate purchase, especially whenbrand switching is involved. Even when acting on impulse, people need tofind something different and appealing in the brands they choose.Insomecategories,likesaltysnacks,carbonatedsoftdrinks,andconfectionary,it may be enough for a brand to have a bank of positive advertising memoriesin people’s minds. A pleasant and amusing association may be enough toprompt someone to say,“I like that one more than others.”In other categories,like computers, insurance, and airlines, marketing communication will needto provide a more coherent story of why a brand is different and better, if onlyto reassure people that they are making a good choice.Intheabsenceofameaningfuldifference,thecheapestbrandmayberegardedas the best choice. Lack of differentiation turns brands into commodities andmarketing messages into white noise. But a meaningful difference can sparkconsumer interest and fuel demand for a brand, even when that brand carriesa significant price premium. In today’s complex, confusing, and increasinglyimpersonal world, people cherish meaning wherever they find it, whether it’sin a brand, a memory, or a lump of rock. So to build value, give people a reasonto cherish your brand.It is when a meaningfuldifference is conveyedand delivered in a waythat resonates withconsumersthatattitudesand behaviors can beaffectedPoint of ViewNotJustDifferentbutMeaningfullyDifferent
  • Point of View
  • While the variety of ideas that marketing mightcommunicate is endless, the general characteristicsof things that people readily remember can beexpressed in a short list. People remember thingsthat are:• Relevant• Different• Emotionally impactful• Recently encountered• Frequently encounteredMany people assume that the first three qualities - relevance, difference, andemotional impact - evolve out of the creative content, while the last twoattributes are functions of media delivery. But it is not really so simple.The characteristics of the media vehicle used to deliver a message can shapethe way people respond to the message itself. A medium can do more than justdelivercommunicationsthatarerelevant,different,andemotionallyimpactful;a medium can actually play a significant part in making communicationsrelevant, different, and emotionally impactful. And therefore, media play animportant role in making communications memorable.Delivering relevance through mediaFirst and foremost, the relevance of a brand’s message derives from the natureof the brand and category being advertised. So, for example, no matter howcool your creative is, ads that pitch women’s fashion and beauty products tomen are not likely to accomplish much.So much is obvious. But assuming that a brand has an appropriate targetaudience in mind, both the creative expression and the nature of the hostingmedium will factor into the relevance of a piece of communication.Reaching the right people at the right timeMost media plans are explicitly designed to deliver brand communicationsto consumers who will find them relevant. Audience measurement researchand studies like TGI are used to identify media vehicles that will be good atreachingtheappropriatetargetaudience.Mediaagenciesalsoputmucheffortinto identifying the situations, dayparts, or days of the week that present thebest opportunities for brands. For example, out-of-home (OOH) advertisingmay be used to attract people’s attention before they shop; we know that thisapproach can be effective because our research often shows that OOH has astrong influence on purchase consideration.Advertisingaroundrelevantcontentisalsoatried-and-testedroutetoreachingpeople when they are most likely to be open to a brand message. Someonewho is reading a fashion magazine is more likely to be engaged with women’sfashion and beauty products than someone watching a prime-time TV show,even if they are both members of the brand’s target audience.Media effects vary across groupsOur CrossMedia research has confirmed the value of understanding in detailhow different media perform with different groups. Among groups of peoplewho are more or less predisposed to a brand or category, we usually observedifferent patterns of channel performance. In a recent study, online videohad the greatest impact on one group, while cinema had more effect onanother group. And both media outperformed TV overall. Because the samecreative execution was used in all instances, we know that the difference inperformance reflects differences in the relevance of each medium—and themessage in that medium.The case for non-TV optionsOn awareness and presence metrics, TV regularly outperforms other mediaper dollar spent. But on more fundamental measures of brand engagementand brand imagery, TV can be less cost-efficient than more targeted medialike cinema, magazines, and online.This is a revelation to most people. Yes, TV is often important in creating initialcampaign awareness, which can subsequently be reinforced and extendedthrough communications in “secondary” media. But this is not the onlyeffective approach, and it is not necessarilybest practice. In fact, sometimes it is a misuseof non-TV channels - a result of sheer lazinesson the part of advertisers.A TV ad can be a powerful communicationsdevice.Butsocanafull-pageadinamagazine,or a provocative or eye-catching poster. Wehave seen great brand impact from non-TVcampaigns over the years, even before thedigital explosion. The famous “White out ofRed”poster campaign for The Economist (which featured text such as “‘I neverread The Economist’ – Management Trainee, age 42”) contributed to buildingthestatusoftheBritishnewsweekly.Morerecently,theout-of-homecampaignthat featured a Mini driving up a wall helped launch the “Mini Adventure”campaign. And in the digital arena, Dove’s viral video “Evolution,” didn’t needTV to succeed.Point of ViewJames GalpinDirector, Global MediaPractice AMAPATV ad canbe a powerfulcommunicationsdevice.But so can a full-pagead in a magazine, ora provocative or eye-catching posterAdvertisingaroundrelevantcontentisalsoatried-andtestedroutetoreachingpeoplewhentheyaremostlikelytobeopentoabrandmessageAfashionmagazinereaderismorelikelytobeengagedwithwomen’sfashion&beautyproductsthansomeonewatchingaprime-timeTVshowThe success of marketing communicationis judged on a variety of factors, and oneof the fundamental criteria is that peopleremember the ideas conveyed.TheOverlookedPowerofMedia:EnhancingtheMemorability ofCommunications
  • How Channel Strategies Help Build DifferenceBrands often set out to use media“differently”from their peers in a deliberateattempt to stand out from the crowd. They may do this by using a mediachannel that their category does not normally exploit, or they may targetadvertising or sponsorship around specific and distinctive vehicles within achannel. This phenomenon is behind much of the migration of brands intonew media spaces, be they digital, experiential, or whatever. However, themost beneficial strategy is one that not only distinguishes a brand from othersbut highlights what is truly special about a brand.A strong brand sets itself apart by offering a brand experience that ismeaningfully different, so media choices that amplify that difference will bemost effective. For example, online shoe merchant Zappos was one of the firstbrands to advertise in the bins used for screening carry-on luggage in airports.They scored obvious relevance points by engaging people at a moment whenthey were unavoidably aware of their shoes, but they also subtly reinforcedZappos’ meaningful difference. The travelers who were already aware ofZappos’ unparalleled personal service were reminded of it as they endured aprocess not known for being warm, friendly, or personal. The contrast madewhat Zappos offered look better than ever.Advertising in atypical dayparts or program genres on TV can also set a brandapart. For example, a few years back, Kellogg’s started to advertise Corn Flakeson late-night TV in the UK. Consumer research had uncovered the fact thatmany adults consume this traditional breakfast food as a late snack or supper.The ads airing late in the evening stood out and made the brand seem in tunewith its customers.Sponsorship is commonly used to build difference, as brands adopt someproperties to try to differentiate themselves by association with special eventsor programming. It is remarkable the range of brands you will come across atvarious summer music festivals around the world. Mobile firms and big banksseem especially eager to get down and funky with youth, in an attempt tostand out from their staid, more businesslike brethren.How Media Can Help DELIVER EMOTIONThe role of media in delivering relevance and difference is fairly easy todemonstrate. It is harder to pinpoint media’s role in conveying emotion, eitherindirectly by enhancing a brand’s messages, or directly by evoking feelings inrelationtothebranditself.Butwebelievethatthemediaenvironmentprovidesan emotional context that can transfer to the brand and its communications.Leveraging Consumers’ Media EmotionsConsumers feel strongly about the media they use; as a consequence, we knowthat they have a sense of some media being appropriate or inappropriate forsome brands and categories. In both qualitative and quantitative researchsettings, consumers accept or reject various media options for particularbrands on what seem to be largely emotional grounds. They may see a vehicleas being too youthful, too light-hearted, or too serious for a brand.Clearly, consumers see that the medium has a role in saying something aboutthe brand—and this information may be very useful to a brand that needsrepositioning. A brand that is struggling with perceptions of being old-fashioned and out-of-date may choose to go all out in new media to signal amore contemporary or youthful face to consumers. In a recent study in China,wesawthatonlineadvertisingwaskeytobuilding“modernandcontemporary”perceptions for a global drinks brand.EventhesimpleideaofbeingonTVmaysignalsomethingimportant.InChina’sdeveloping consumer market, people have more faith in“big”brands becausethey seem more trustworthy and reliable. A brand that advertises on TV, andon CCTV in particular, is assumed to be big and trustworthy, especially by theless sophisticated consumers of inland China. This principle motivates manybrands in many countries to invest in TV advertising, but it is most relevant fornew challenger brands that are seeking to establish their credibility.Emotional Transference from Associated ContentThe other factor that can deliver emotional meaning to communication isthe content in which it occurs. Highly engaging content is believed to leadto heightened attention during commercial breaks. So if advertising aroundengaging content leads to increased attention to ads, we think it reasonableto assume that advertising around specific types of content may transfer theemotional associations of that content to a brand. For example, advertisingduring seriousTV dramas or news programs could lend gravitas and credibilityto an insurance company or a financial service provider. Comedy might be abetter venue for candy, snacks, or fun vacation destinations.Asmostcampaignsrunacrossamultitudeofcontenttypes,ithasbeendifficultup until now to determine the influence of program content. However, we cansee evidence more easily with sponsorships. Consider the success enjoyedby Baileys when it sponsored “Sex and the City” over an extended period.The association lent a sense of glamour and sophistication to Baileys and,perhaps most importantly, linked the brand to the sense of female bondingand togetherness that the show created among fans.Point of ViewCoca-ColawrapsitselfaroundtheOlympicsbecausetheseeventsareexceptionalfortheirabilitytocreateasenseofcommunityMoving beyondTV, Red Bull is not seen all over dangerous and extreme sportsevents and media content just because it is targeting fans of these activities.Rather, by associating with activities that engender intense interest andexcitement, the brand is trying to capture some of that emotional power foritself. By the same token, Coca-Cola wraps itself around the Olympics and theWorld Cup because these events are exceptional for their ability to create asense of community. Across the world, these events bring people togetherthrough shared experiences, hopes, and dreams, and so they provide a fittingplatform for a brand that 40 years ago aspired “to teach the world to sing inperfect harmony.”Delivering Not Only Messages, but MemorabilityMedia can play a far wider role than the simple delivery of brandcommunications. Through their ability to carry messages to the right peopleat the right time, media vehicles canmake or break the relevance of a brand’scommunications. They can help a brand sitapart from the crowd and differentiate itsmessage.Their emotional tonality providesa context that can help a brand get throughto its audience and enhance the emotionsthat their message evokes. In some casesthe vehicle may even directly influence theemotional associations of a brand.In fact, a great media choice may do all of these at once, reaching relevantpeopleinadistinctiveandemotionallyengagingcontextandthussubstantiallyenhancing the memorability of brand communications. Of course, if smartmedia selection can do all this good, we also have to recognize that ill-considered placements may do considerable harm. This just makes getting itright all the more important.The quality of the creative is of course a critical element in the success of brandcommunications. But Marshall McLuhan was also on the right track when hefamously stated,“The medium is the message.”For brand communications, themedium is a very significant part of the message. Therefore, advertisers needto go beyond the question of just how much to spend. All GRPs are not createdequal; smart media decisions can significantly enhance memorability andenable marketers to get the most out of their communications investments.Through their ability tocarry messages to theright people at the righttime, media vehiclescan make or break therelevance of a brand’scommunications.TheOverlookedPowerofMedia: EnhancingtheMemorabilityofCommunications‘A brand that advertisesonTV in China, and onCCTV in particular, isassumed to be big andtrustworthy’
  • Point of View
  • The evidence is in Jim Stengel’s new book, Grow:How Ideals Power Growth and Profit at the World’sGreatest Companies. With the help of MillwardBrown Optimor, Jim identified the 50 brands thatranked highest on both consumer bonding andvalue creation over the past decade.1 As we workedwith Jim to understand what made these brandsso successful and fueled their growth, we observedthat the best businesses are ideals-driven.What Is a Brand Ideal?A brand ideal is a higher purpose of a brand ororganization, which goes beyond the productor service they sell. Jim explains it this way: “Theideal is the brand’s inspirational reason for being.It explains why the brand exists and the impact itseeks to make in the world. A brand ideal activelyaims to improve the quality of people’s lives. Itcreates a meaningful goal for the brand—a goalthat aligns employees and the organization tobetter serve customers.”The brands in the Stengel 50, though they come from both public and privatecompanies in B2B and B2C businesses, and include established as well asyounger, smaller, fast-growing companies, all have a clear sense of purpose.Zappos is in the business of delivering happiness. Pampers does not just selldiapers; it cares for the happy, healthy development of babies around theworld. IBM’s purpose is to make a smarter planet. Google exists to organizeand give access to the information of the world, and Discovery Channel’s idealis to satisfy curiosity.A Brand Ideal Is Not …A brand ideal is not a mission statement. Mission statements tend to benarrow, business-oriented statements such as “Be the leader in customersatisfaction” or “Be the most innovative company.” Mission statements tendto be self-serving and therefore limiting.Ideals, being outward focused, extendbeyond the company’s financial interests.Red Bull’s ideal is to uplift mind and body;it exists to energize the world.“To be the #1energy drink” is probably a mission for thecompany, yet it is seen as an outcome, notits raison d’être.Nor should an ideal be confused withcorporate social responsibility (CSR) orcause marketing. The ideal is a core principle inherent in a brand, somethingthat emerges from a company’s DNA. Though such a high-minded conceptmay seem impractical or lofty, we also have proof that ideals-driven businessesdeliver higher performance. We have consumer research data as well asfinancial data that verifies the power of ideals. Research recently conductedby Millward Brown found that, when asked to name brands that were basedon ideals, people mentioned the brands in the Stengel 50 more than otherbrands.We also have proof that ideals-driven businesses deliver higher performance.As shown in the chart below, Stengel’s top 50 brands outperformed the marketover the past 10 years. An investment in the Stengel 50 would have been 400percent more profitable than an investment in the S&P 500.How Brand Ideals Light the WayWhen a brand ideal is at the heart of a business, it serves as a light from withinthat guides every decision of the leaders and employees in every department,from HR to finance to marketing to product development. Ideals, we found,help shape a business and organization in three distinctive ways. First, idealslead to the creation of more meaningful products, services, and customerexperiences. Second, ideals align the organization and its culture behind acommon purpose. And finally, ideals lead companies to rethink the way theyengage and communicate with consumers; ideals move them beyond sellingand telling consumers what to do to inviting them into dialogue.Point of ViewBenoit GarbeVice President, MillwardBrown OptimorJim StengelGlobal Marketing OfficerProcter & Gamble (2001-2008)Author: Grow:HowIdealsPowerGrowthandProfitattheWorld’sGreatestCompaniesThe ideal is the brand’sinspirational reason forbeing. It explains whythe brand exists and theimpact it seeks to makein the world400%0%STENGEL TOP 50 S&P 500The Stengel 50 Outperform the Market“Doing well by doing good”— is that really attainable?We have alwaysthought so, but now we have proof.The most successful brands andbusinesses in the world are built around something other than justmaking profit.They are built around ideals.”Ideals:TheNewEngineofBusinessGrowth
  • Ideals inspire outstanding brand experiencesThe sense of meaning that comes from delivering on an ideal inspires ahigh level of dedication to producing the best possible brand experiencefor customers. Product performance,innovation, packaging, design—all ofthese elements are inspired, developed,and refined in the light of the ideal.Method, the household cleaningcompany, was built on the ideal ofinspiring a home revolution to createhappy, healthy homes. Every aspect ofeach product is inspired by the ideal:the non-toxicity, the natural scents, thebeautiful ”cosmetic-like” packaging.Apple offers the best experience through beauty and simplicity. ChipotleMexican Grill, another one of our top 50, fulfills its ideal of bringing integrityand taste back to food by inviting patrons to create their own custom dishesusing fresh, natural, and locally sourced ingredients.Ideals align organizationsThe best companies align their organizations and culture behind their ideals.By being purposeful (beyond making money and growing market share),they provide a higher meaning to all employees. The ideal provides clarityand intentionality. More importantly, these companies develop systems andprocesses to stay true to their ideals. For example, Red Bull has set uniquehiring guidelines. They don’t put a priority on hiring people with beverageindustry backgrounds; instead they focus on athletes, DJs, and former RedBull student ambassadors—people who believe in and live the ideal. Even theworkplace is designed to be true to the ideal. For example, Red Bull’s Londonheadquarters has skateboard ramps and slides from floor to floor!Zappos has set up processes that allow employees to be true to the ideal ofdeliveringhappiness.Employeesdonothavequotasortimegoalsforcustomercalls. Nor do they adhere to scripts. They are empowered to help customersin need, whatever it takes. There are stories of employees sending flowers tocustomers in distress and helping customers order pizza in the middle of thenight. And for Zappos, delivering happiness has delivered sales. The companyexceeded the $1 billion mark this year and has the highest loyalty rate of allonline retailers.Ideals redefine consumer engagementFinally, a brand ideal changes the basic rules of communication by inspiringcompanies to engage with consumers in a more meaningful way. Rather thantelling consumers what to think or do, they take the lead in inviting consumersto co-create with them. For example, IBM invites consumers, thought leaders,and employees to rethink how we can make the planet smarter, whetherthat’s by fighting crime, addressing traffic congestion, or using energy moreefficiently. Rather than simply communicating the benefits of their diapers,Pampers has partnered with UNICEF in providing vaccines to eradicatematernal and newborn tetanus, and created online and offline forums wheremoms can gather to discuss and learn about the health and development oftheir babies.Ideals Can Also Light the Way BackCompanies and brands can go off course, whether or not they are guided byideals. However, a brand ideal can help a company find its way back. The rise,fall, and recent turnaround of Starbucks provides a good example. Starbuckswas built on an ideal—to create human connections. From a few stores inSeattle, the chain grew into being the cornerstone of every neighborhoodin America and around the world. However, this focus on growth became adistraction that got Starbucks into trouble—until it returned to its beliefs,values, and ideal.After years of rapid growth and expansion, in 2007 the chain found itselfoverexpanded and confused about its purpose. Was Starbucks meant topromote human connection or simply to be ubiquitous on every street corner?Was Starbucks meant to promote human connection or simply to maximizeprofits through speedy and efficient service?A succession of incremental decisions made over the years had led Starbucksaway from its fundamental values. Drive-through windows didn’t foster face-to-face interactions.An emphasis on speed and efficiency interfered with employees’ ability tocreate a sense of community. Automatic espresso machines reduced the needfor the care and craftsmanship of a Starbucks barista. The magic and romancehad been lost; Starbucks was no longer celebrating coffee.When Howard Schultz returned as CEO in January 2008, he refocused theorganization on the brand ideal, thereby impacting the product and customerexperience, the company culture, andits consumer engagement. First, Schultzrestored coffee to its original place as thebrand centerpiece. “Starbucks is morethan coffee,” said Schultz, “but withoutcoffee, we have no reason to exist.”On February 26, 2008, 7,000 U.S. storeswere closed for the retraining of 135,000baristas. This bold action was just the firstof many initiatives, including the returnto on-location grinding, the launch of the Pike Place Roast, and the redesignof the look and feel of the stores.Second, once he was back at the helm, Schultz reminded the organizationand all of its partners why the company existed. Many companies fail, he said,”not because of challenges in the marketplace, but because of challenges onthe inside.” Schultz worked to remove operational and structural barriers torealizing the ideal and to reinforce the“big why”of Starbucks—to inspire andnurture the human spirit, one person, one cup, and one neighborhood at atime.Finally, Starbucks set about reengaging with consumers in a more meaningfulway than before. Schultz entered the company into a highly visible andpublicized partnership with Conservation International and committed itscoffee to being“Responsibly Grown, Ethically Grown, and Proudly Served.”Oneofthefirstbrandstoenterintodialoguewithconsumerswhenitexperimentedwith MyStarbucksIdea.com in 2008, Starbucks continues to co-create withconsumers and is now one of the most active brands in social media.Going back to living its ideal helped turn Starbucks around. Its stock price,which bottomed out at $8.43 in 2008, ranged between $46 and $48 duringJanuary 2012.Starbucks turned itselfaround by going backto living its ideal – toinspire and nurturethe human spirit, oneperson, one cup, and oneneighborhood at a timePoint of ViewIdeals:TheNewEngineofBusinessGrowthA brand ideal serves asa light from within thatguides every decisionin every department,from HR to finance tomarketing to productdevelopment
  • What Lights Up Your Brand?The best brands have navigated by the light of their ideals for decades. Somebrands were organized around an ideal from their inception, while otherschose to consciously and deliberately reorient their businesses around ahigher purpose. So we believe that all brands and businesses, whether theyare presently driven by the loftiest ideals or the most mundane purposes, canlearn from studying brands like those in the Stengel 50. Consider the followingquestions.Why are you in business?Does your company operate around a brand ideal? If not, did it ever? Don’t tryto“invent”an ideal—a true brand ideal can’t be developed by a task force. Butyour company may have been founded on an ideal that will still be relevantonceit’sunearthed.Consideryourcompany’sheritage.Whatdidyourfoundersbelieve in? Why did they get into business? What need did they set out toaddress? Why do employees believe in what they do?Is your ideal clear, and are you acting on it?Whether or not your company offers a higher-order benefit to the world,everyone in your organization should have a clear understanding of yourbrand’s purpose and be empowered to act on it. Does your ideal guide decisionmaking? Does it inspire innovation? How does the ideal impact your productsand services?Is your organization aligned around your ideal?Take a look at your organization’s structure. Does it facilitate the expressionof your ideal? Are employees in all functions able to keep it in view? Is theachievement of short-term goals balanced against the long-term fulfillmentof the ideal? In light of your ideal, how do you hire and promote?How often do you revisit your ideal?Abrandidealthatiskeptunderglasswillnotserveyourorganization. Scrutinizeevery action, decision, and significant change in light of your ideal. Only byconstantly referring back to your company’s reason for being can you avoidthe creeping incrementalism that undermined Starbucks.Brand Ideals: The New Path for GrowthThe brands that will survive and thrive in the decades to come will bethose that are based on ideals, because in changing times and challengingcircumstances, a brand ideal serves as a beacon. It guides the brand along apath of growth and change, helps to identifyopportunities for challenging the status quo,and sheds light on new and different ways todeliver higher-order benefits in the future.It‘s time to reset the course of marketing.Brand ideals represent a new path for growth.Leaders who build their companies aroundideals will have a meaningful impact—on consumers, their employees, theirbusinesses, and ultimately the world.The brands that willsurvive and thrive inthe decades to comewill be those that arebased on idealsPoint of ViewIdeals:TheNewEngineofBusinessGrowth
  • PUBLISHEDARTIcLES
  • he promise of mobile marketing is staggering. Andfor good reason: Despite an overwhelming lack ofenthusiasm for it, audiences respond to it. Accordingto the latest AdReaction report out today fromMillward Brown and its Dynamic Logic and FireflyMillward Brown units, one-third of mobile usersreport taking action in response to mobile advertising. Almost halfreport interacting with a brand on their mobile device followingrecommendations from friends or family members. And one-thirdof users say that receiving deals or promotions via mobile improvestheir opinion of the brand.While these engagement figures are undoubtedly promising, the factthat only 11 percent of smartphone users and 16 percent of tabletusers indicate they are favorable toward mobile advertising signifiesa fairly deep chasm between effectiveness and love. Why is that?Here is what we heard:By Joline McGoldrick,Research Director at Dynamic Logic, Millward Brown’s Digital PracticeMobile:AnEffective-YetUnloved-MarketingMediumTA mobile device is also a tool, and the mobile web apersonal space. Users are goal-directed. Non-user-initiatedcontact temporarily derails them from their goal, and theywant tangible value in exchange.Response to various ad formats varies significantly bydemographic and psychographic variables. Understandingwhere flexibility or openness exists is essential.Users expect mobile marketers to know who they are andto target them accordingly. Close to 40 percent are willingto share their location and interests in exchange for theright content and promotions. To the chagrin of mobileusers, many marketers still don’t target effectively orappropriately.Many mobile sites or apps simply don’t work. Users who takeaction on an offer or recommendation are often sent to asite or app that, at best, doesn’t meet their mobile needs or,at worst, doesn’t work correctly. Users have extremely highexpectations of mobile’s technical competence.No one likes“rude intrusion.”Marketers often overreachby asking for too much personal information, deliveringirrelevant ads or brand posts, or not offering consumersa simple way to opt-out. Not surprisingly, this behavior isthen imputed onto the brand itself.
  • Correcting these drivers of mobile dissatisfaction sounds simple,but many mobile marketers have yet to improve their tactics, despitean audience so open to being wooed. The solution? Commitment to10 principles that are key to winning over audiences and buildinglasting value for brands.Mobile Display1. Offer a clear call-to-action. No medium is more primed to engage aconsumer on the spot. Make sure your mobile ad does everything possibleto prompt a response.2. Target the person, the moment, the location. Users have an expectation ofmobile’s built-in intelligence, and poor targeting suggests that brands aretoo lazy to send“the right ads.”3. Develop integrated mobile campaigns. Mobile ad units are a layer of themobile continuum – not a strategy. Use display ads to drive traffic to anoptimized website or app for continued engagement.Mobile Websites4. Be fast. Be clean. Be functional. Don’t feel compelled to outdo your onlinewebsite, but optimize it for the mobile platform and across devices. Embracethe goal-directedness of the mobile user and minimize taps. Subaru’smobile site is a great example —two taps delivers location-based deals.5. Don’t value entertainment over competence. Deliver functionality first andreward later.6. Keep the latest news on top and tailor to the location.Mobile Apps7. Make apps easy to acquire, user-friendly, crash-proof and free.8. Be relevant. Design with the core target, primary use and operating systemin mind.  Answer the when, where and why about your app. A great exampleis Home Depot’s app that allows users to scan QR or UPC codes in the store,read product info or reviews, and share or add to a shopping list.9. Be mindful of using audience resources. One-third of users say apps draintheir battery while one-in-five feel that apps want too much info.10. Once you’ve done the above, aim to surprise and delight. Users reportonly using half their apps regularly. Provide a reason for them to come back.One respondent in the study said,“The Sam’s Club app was like eye candy.I would seriously consider getting a membership based on how cool theirapp was. It made it so easy to shop.”Mobile marketing, when done right, can measurably improveconsumers’ opinion of a brand. Normative data from Dynamic Logicindicates that mobile ads can typically increase brand awareness,message association and purchase intent four times that of onlineads.The appetite for effective mobile marketing is here today– in a verybig way. Respecting the wants and needs of consumers and thedistinctiveness of the platform is essential and can be the differencebetween damaging your brand and inspiring immediate action – andmaybe even a little love.First published in the November, 27 2012edition of Forbes, www.forbes.comMobile: An Effective - Yet Unloved - Marketing Medium
  • hile everyone was getting excited about thepotential of the BRIC nations, Africa quietlyemerged as the real growth story, and withapologies to Star Trek, Africa may just be“the final frontier”. No other continent offersthe same growth potential. Africa boaststremendous mineral wealth, holds 60% of the world’s uncultivatedarable land, and recorded real growth throughout the recession.According to the latest UN World Population Prospects report,Africa will be the fastest-growing continent “by any measure” overthe course of the 21st century, and investors are understandablyinterested.The rise of Africa is an indicator of the changing orientation of theglobal economy. Africa’s raw materials have attracted the attentionof China, both as a lender and trade partner, and China’s investmenthas been a critical driver of current growth. As major socio-economicchanges occur across the continent, the wealth of African society isgrowing, fueled by the emergence of the middle class. According toThe Economist, over the past 10 years, six of the 10 fastest-growingeconomies were in Sub-Saharan Africa, and in the next five years,seven Sub-Saharan economies are expected to make the list. Truly,the next decade belongs to Africa.While many wonder if the current flood of growth can continue,recent developments on the African continent suggest that itcan. Political stability, particularly within the DRC, Angola andMozambique, has encouraged investment in these large and growingmarkets (Mozambique has been the fastest-growing non-oil economyin Sub-Saharan Africa over the past 15 years).Macroeconomic stability has enabled broad-based economicexpansion, attracted Foreign Direct Investors (FDI’s), and sustainedaid flows to fund social and physical infrastructure. Increasinglystringent oversight from FDI’s has required African governments toimprove fiscal planning, and as a consequence, general inflation inAfrica has fallen from levels exceeding 20 percent to single–digits.Widespread privatization has eventually proved bountiful despitethe initial hurdles encountered. And the professionalization of coreservice deliveries such as telecommunications has had positiveknock on effects in other sectors.By Charles Foster, Paul Omondi and Chris GithaigaMillward Brown East AfricaWOnOurDoorstep:TheAfricanGrowthStoryFigure 1: World’s ten fastest growing economies - Annual average GDP growth2001-2010 (2010 estimate)Angola 11.1China 10.5Myanmar 10.3Nigeria 8.9Ethiopia 8.4Kazakhstan 8.2Chad 7.9Mozambique 7.9Cambodia 7.7Rwanda 7.62011-2015 (Forecast)China 9.5India 8.2Ethiopia 8.1Mozambique 7.7Tanzania 7.2Vietnam 7.2Congo 7.0Ghana 7.0Zambia 6.9Nigeria 6.8Sources: The Economist, IMFFigure 2: GDP Growth, unweighted annual average, %654321970s 1980s 1990s 2000s 2011-15 forecastExcluding countries with less than 10m population and Iraq and AfghanistanAfrican Countries Asian Countries
  • The continent’s dynamism is evident in its economic achievements:• The emergence of large African companies, notably• 20 African companies with revenues of at least $3 billion• More than 100 companies with revenues of at least $1 billion• More than 316 million new mobile phone subscribers have signedup with over 50 mobile service providers since 2000Growth is expected to continue in all areas:• Africa’s collective GDP will increase from $1.6 trillion to $2.6trillion by 2020. Over the same period, consumer spending willgrow from $860 billion to $1.4 trillion• Agricultural output will increase from $280 billion today to $880billion by 2030• The number of Africans of working age will exceed 1 billion by2040, when the continent will be home to one in five of the planet’syoung people and its labour force will be the largest in the world,topping both China and India• On average, African workers are currently half the cost of theircounterparts in Central Asia, Latin America and Eastern• Europe, and this presents vast opportunities for factoryinvestments in over 30 markets (only restrained in the Northwhere strict Islamic code makes for tough business).Getting a foothold in Africa: Does one shoe fit all?It is imperative that companies recognize that Africa isn’t oneeconomy or homogenous population block. It is a conglomerateof 53 countries which, more often than not, don’t share policiesand attitudes, and have evolved differently through their socialand economic pasts. Successful brands on the continent are thosethat have made strategically compatible entries into select Africanmarkets, depending on the product category and the economic stageof the country in question.On Our Doorstep: The African Growth StoryAfrica, just what are we talking about?While growth is exploding throughout its various regions, Africaremains a very diverse continent on many scores. The population ofAfrica exceeds 1 billion people, who:1BRepresentover500ethnicgroupsSPEAKOVER2000LANGUAGESLIVEIN53COUNTRIES(including6islandnations)OFTHEWORLD’SOILRESERVES10%40%OFTHEWORLD’SGOLDOFTHECHROMIUM&PLATINUMGROUPMETALS90%UPTOOFTHEWORLD’SUNCULTIVATEDARABLELAND(600millionhectares)60%
  • Who and where are the consumers?Using LSMs, we can broadly classify the African consumer into 5groups.It is in groups 2 and 3 that we have seen the most phenomenalgrowth. The members of Group 2 are referred to as the urban poor;it is not until you reach Group 3 that you can start referring tothe middle class (using financial sector classification based on ahousehold income of $5000 pa).African households spent a combined $860 billion in 2008, slightlymore than that of Russia and over $100 billion more than India.It is this increase in the lower-middle and upper-middle LSMconsumer base that is set to differentiate the continent from theBRIC countries as options for investment for corporations looking toexpand further into emerging markets.It is in groups 2 and 3 that we have seen the most phenomenalgrowth. The members of Group 2 are referred to as the urban poor;it is not until you reach Group 3 that you can start referring tothe middle class (using financial sector classification based on ahousehold income of $5000 pa).African households spent a combined $860 billion in 2008, slightlymore than that of Russia and over $100 billion more than India.It is this increase in the lower-middle and upper-middle LSMconsumer base that is set to differentiate the continent from theBRIC countries as options for investment for corporations looking toexpand further into emerging markets.The media and communication landscapeSo how do brands reach the 1 billion Africans? According to recentdata1, radio and TV are the primary sources of information onproducts and services. It is estimated that there are some 200million radios on the continent, making radio a crucial channel inreaching the consumer, while TVs number about 62 million – a ratioof one TV for every 17 people (or every four to five households). Print(newspaper and magazine) performs dismally with single-digitreaches.The typical consumers targeted by FMCGs are usually urbaniteswith disposable incomes. Millward Brown data indicates that withinthis group, the reach (defined as access during the past seven days)of radio runs between 70 and 80% of the target population, while TVreaches between 40 and 50%. The reach of print diverges from westto east; in West Africa print reach averages 30% while in East Africait gets to the high 50’s.Brands on the continent that have been successful at reachingthe mass market (rural and low-end) while staying relevant tothe middle and upper classes have been able to make the varyingreaches of these two key media complement one another. A greatexample was MTN’s campaigns during the 2010 FIFA World Cup andAfrica Cup of Nations, where a 360° approach to the media mix washighly successful.While seeking to reach as much of the African population aspossible, the BBC has estimated their total reach at around 90million across the continent. Of this, 78% is by radio, 20% by TV andabout 2% by internet. What is interesting to note is that two-thirdsof TV viewers listed radio as being equally important to them.While TV is rarely the most cost-effective medium, it does delivervolume in terms of quantity of impressions and ultimately response.Analysis shows that two (or more) media is better than one.Digital• There are 84 million internet-enabled mobiles in Africa.• More people have access to cell phones than to clear drinkingwater• 40% of all businesses in Africa use ADSL• 12% of Kenya’s GDP moves via M-Pesa• M-Pesa will move at least $1 billion in Kenya alone this year• As of December 2011, there were more than 37 million Facebookusers in Africa, representing a growth of 165% over the preceding18 monthsSuccessful brands on the continentThe African market is dynamic and evolving, with many globalbrands represented, and a homegrown market for locallymanufactured products. Africa’s top advertisers include MTN,Globacom, Airtel, Guiness Stout and Coca-Cola, and Nokia. Africa’smain challenges lie in its enormous size and diversity. A thoroughunderstanding of local cultures, beliefs, customs, economics, andpractices is required to be successful. Companies and practitionersthat have followed globalized assumptions and methods have failedto make an impact. A key factor for success is having marketingoperations headed by locals who understand and connect with whatconsumers need.The route to market presents the greatest obstacle that companiesmust overcome to build a successful business in any African market.Given that more than 60% of people in Africa live in rural areas andhave limited access to transportation,simply covering “the last mile”to reach the final consumer can be extremely costly and difficult formarketers. To be successful, companies must build strong sales anddistribution networks by leveraging a mix of third party, wholesale,and direct distribution models.On Our Doorstep: The African Growth StoryLSM1Group 1Lower LSM’sLargest group - 50%+Mainly rural“Appearance”secondaryHygiene keyLow economic participationLSM2LSM3LSM4Group 2Lower Middle LSM’sOver one thirdEqually urban/rural“Appearance”keyHygiene secondaryWeak economic participationThe lower middle classLSM5LSM6LSM7LSM8Group 3Upper Middle LSM’sMinority but growingMore urban“Appearance”mattersHygiene mattersInvestment is keyThe“haves”LSM9LSM10LSM11LSM12Group 4Upper LSM’sMinority but growingMore urban“Appearance”mattersHygiene mattersInvestment is keyThe“haves”LSM13LSM14LSM15LSM16Group 5EliteUrbanAffluent, actualization, no barriers toaccess what they wantLSM17Figure 3: LSMsIn Africa, the Living Standards Measures (LSM) has been developed to better determine the socio-economicstatus of a household. It is arrived at after summing up household durables, educational background andactivities that have been assigned some values. Africa has LSMs 1 – 17.
  • On Our Doorstep: The African Growth StoryWithout doubt, Africa has been at the forefront oftelecommunications development over the past decade and a half.The opportunity in this sector attracted Asia’s biggest player, Airtel,into the market, making it the second-largest service provider inAfrica after MTN. MTN is the first African brand to be listed inthe 2012 BrandZ™ Top 100 Most Valuable Global Brands studypublished annually by Millward Brown.Nokia rediscovered itself on the continent after flagging sales sawit lose its market leadership in Europe. Today they enjoy a massivemarket leadership on the back of a distribution network in nearly100% of African countries. In the beverage category there are globalbrands such as Coca-Cola who have almost 100% presence in allmarkets and SABMiller, a true African born-brand, with a footprintin over 30 markets (only restrained in the North where strict Islamiccode makes for tough business).“SABMiller’s tactic has been to buy local brands and then investintelligently in emerging markets rather than exporting onehomogeneous brand to every corner of the globe. The origins of thecompany have played an influential role in this strategy. We werealso the first global company to see the beer market as a series oflocal brands, identifying that you can’t impose a brand, a wayof thinking or business; the key is to customize things to the localmarket.”Jonathan OatesBusiness Media Relations Manager SABMillerSource: food processing-technology.comIn the banking sector a similar dynamic exists, with global brands(Barclays in 12 markets and Standard Chartered in 14) fostering newexpansion alongside home grown brands like Standard Bank (SouthAfrica) and the group of Nigerian banks led by UBA and EcoBank.The retail sector on the continent has been abuzz with the entryof Walmart. Walmart’s $4.2-billion purchase of 51% of Massmartnow gives the world’s biggest retailer access to African markets.But it’s been South African based chains that have been setting theexpansion trend to confirm the growth of the middle class. Noneother epitomizes this better than Shoprite, which today is in 16countries compared to one shop 1995.Poor infrastructure in Africa means that understanding theconsumer needs may be easier than getting the product to them,regularly and consistently. Proctor & Gamble cracked the Nigerianmarket with a 10-year plan by building a dedicated supplierdistribution network – you have to be patient on the continent!Developing innovative, low-priced consumer products and services isalso a key factor. Nokia has shown how this can truly be a profitableand fortune-changing approach to market penetration, and sharesthis space with Safaricom, whose unique money transfer productwas developed on the back of an obvious need.For African brands to break through, they must build brandsunderpinned by local insights that motivate African consumerswhile delivering on a global standard. A great example is Pay-As-You-Go, Africa’s first prepaid airtime service. Initially mobilenetworks had contract-based services geared towards the wealthy,but on a continent where formal employment is rare, mobiletelephony was for the elite. Pay-As-You-go changed this, and themobile telcos have never looked back. Today the concept is a keydriver in most telecoms business models.Brand Success Case Studies on the Continent1. The Telecoms SectorMTN, 1OO million subscribers in AfricaIn a place where the challenges of infrastructure and environmenthave thrust millions of people into marginalization, mobile networksarrived to connect individuals and societies, providing the abilityto communicate and access information. In Africa,the accessibilityof basic voice telephony that we know and take for granted, had atransformative effect on these people and countries.MTN is a seasoned veteran of doing business with rural consumers,with operations in 21 markets across Africa and the Middle East.To boost its market share among rural, low-income Africans,MTN created services tailored to their needs. They establisheda network of local agents, set up kiosks in rural areas, and gaveagents motorbikes to reach even the most remote places. Adopting acustomer-focused strategy, MTN set up as many outlets as possiblefor their subscribers to gain access to their products and services.MTN also developed lower denominations when selling airtime toaccommodate the low and unpredictable incomes of many Africanconsumers. They introduced innovations like telemedicine and voice-based apps such as iCow and Xam Marse to provide rural farmerswith real-time access to market prices through the internet on theirmobile phones. Nowhere is the astounding utility of a mobile phonemore apparent that in the rise of mobile money. This mobile networksystem allows customers to virtually wire cash to each other, eitherfrom simcard to simcard or from phone to phone. MTN MobileMoney launched in 13 countries and at the end of March 2012 had6.2 million subscribers.Mobile money is still in its infancy, but we are arguably looking atthe future of money and financial transactions, and it’s unfoldingon the bustling streets of Africa. In Uganda alone there are now2 million mobile money customers, and only 500,000 bankingcustomers in the formal sector. Only when marketing meets withsocial need do we start to see this kind of societywide traction.
  • Mobile telecommunications has proven to be a life-and-society-changing phenomenon, and as MTN entered country after country,the brand embraced its role as the champion of everyman. And at theheart of this African business was a clear vision – not just to spreadand proliferate products or services, but to speed up the progressof the emerging world. Companies that deliver infrastructure, likemobile telephone networks, play a much bigger role than in just themarketplace.There are places in Africa where communities are yet to experiencerunning water or electricity.Yet they have access to an MTN VillagePhone, and therefore access to the world. MTN is also one of thebiggest employers on the African continent, training local peopleto deliver on a global brand, yet keeping the company rooted andinvolved in society.Through such innovative distribution and promotional activities,MTN has been able to capture a significant proportion of the lowerLSMs, which is a critical entry point to the African market. Half ofthe continent’s 1 billion population own a mobile phone (makingAfrica the fastest growing mobile market in the world after Asia),but their use extends far beyond just telephony. The power of themobile is forging a new enterprise culture in Africa from banking, toagriculture and healthcare.2. The Banking sectorUBA United Bank for Africa (UBA) is one of Africa’s leading financialinstitutions offering banking services to more than 7 millioncustomers via 750 branches in 18 African countries. With officesfurther afield in New York, London, and Paris, UBA is connectingpeople and businesses across the world through retail and corporatebanking, innovative cross-border payments, trade finance, andinvestment banking.Over the past three years, UBA has undergone a period of rapidexpansion that had seen affiliate banks in 16 African countries comeon board. The consolidation of UBA’s affiliates under one brand andthe implementation of consistent policy and standards enabled thebank to make phenomenal changes between 2008 and 2010. Thiswas especially meaningful given that during that period NigerianBanks experienced a run from customers that forced the CentralBank to intervene and culminated in jail sentences for some seniormanagers. The success of the Bank has seen Tony Elumelu, the MDduring this volatile period, become a much sought-after businessand motivational speaker across the continent.3. Retail Sector – ShopriteThe Shoprite group is today Africa’s biggest food retailer, withoperations in 16 countries, including Angola, Botswana, Ghana,Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia,Nigeria, South Africa, Swaziland, Tanzania, Uganda, Zambia,Zimbabwe and the Democratic Republic of the Congo.Shoprite began by consolidating its market leadership in its homemarket of South Africa by uniquely targeting the middle to bottomend of the local food retail market. In addition, the group soughtfurther efficiencies through employing a central distributionstrategy.Essentially, central distribution involves owning a series ofwarehouses to which suppliers make their deliveries. Trucks are thensent out to stores as stock is required, rather than depending onsuppliers’ schedules or reliability.This not only ensured that Shoprite controls its own supply chainbut has also reduced the costs associated with stores needing toincorporate enormous loading and storage areas to hold largeinventories. Shoprite also diversified into other target marketoutlets, with the result that the retail outlet became a one-stopconvenience store and their money market counter provided links toother service providers.Where the continent is headedForeign investors are no longer just interested in oil wells and minesin Africa, but are looking at medium-sized bets on consumer goods.Analysts are consistent in identifying Retail, Banking and Telecomsas sectors that will drive the African economies forward in the nextdecade, and these sectors are consistent with the identified growthpaths taken by key African economies.Global companies are including Africa in their growth strategies asconsumer demand in more mature markets struggle post the globalrecession, and the growth of the African continent is driven as muchby commodities and technology as it is by improving governance andthe spread of democracy. And economic change has made life morerewarding for Africans themselves. The continent is truly opened forbusiness!On Our Doorstep: The African Growth StoryArticle reprinted with permission fromWarc, August 2012, www.warc.comSources: McKinsey,The Economist, IMF, Millward Brown, BrandZTM, BBC, Synovate,ITCWorks,The Jupiter Drawing Room
  • Luxury brands are thriving asconsumers save their money forspecial items. Nick Cooper, ManagingDirector of Millward Brown Optimor,Europe, explains which brandstrategies work best.LUXURYSTRATEGIESEMERGINGInsights from BrandZ
  • Luxury brands grew by 15% in this year’s BrandZ Top 100 Global Brands,more than any other category. Louis Vuitton bagged the top spot as theworld’s most valuable luxury brand with a value of $25.9bn.The Most Valuable Luxury Brands 2012Underlining the health of the sector, Hermès at number two in the luxurycategory, with a 61% rise in brand value to $19.2 billion, gained the mostplaces in the Top 100 ranking of all brands. It is now ranked 32nd, up 39 places.A number of factors are behind the success of the luxury sector. After severalyears of economic difficulty, North Americans and Europeans who could affordluxury indulged. In addition, in China and other fast-growing markets, salesrose as the expanding middle classes continued to indulge their appetite forluxury brands.While shoppers have become smarter in the way they choose brands – withconsidered rather than conspicuous purchasing – they are still determined tospend, but spend more wisely. Many have focused less on collecting luxurylabels and more on creating a unique personal look that often mixes luxurybrands with more affordable options. What luxury brands have to do is tick thekey boxes of quality craftsmanship, heritage and history – and thereby meetthe expectation of being seen as a good investment, with the trend towardsclassic pieces rather than high fashion. In particular, young professionals whoare increasingly unable to purchase property, are spending their disposableincome on affordable products from luxury ranges offered by brands such asPrada, D&G, Hermès, Gucci and Louis Vuitton.Despitetheeconomicturmoil,luxurybrandsarethriving.Category rank Gobal rank Brand Value in $millionBrand valuechange from20111 21 LouisVuitton 25,920 +7%2 32 Hermès 19,161 +61%3 - Rolex 7,171 +36%4 - Chanel 6,677 -2%5 - Gucci 6,420 -14%6 NEW Prada 5,788 n/a7 - Cartier 4,843 -9%8 - Hennessy 4,596 -8%9 - Moët & Chandon 4,217 -8%10 - Burberry 4,090 +21%Emerging Luxury Strategies
  • LouisVuittondesignedastoreonMarinaBayinSingaporetoresembleacruiseship,reflectingthebrand’stravelheritage
  • What luxury brands haveto do is tick the key boxesof quality craftsmanship,heritage and history –and thereby meet theexpectation of being seenas a good investment,with the trend towardsclassic pieces rather thanhigh fashionLuxury trendsThere are a number of emerging trends that are visible in the 2012 figures, orare becoming more powerful drivers of performance.• First, given that most luxury brands are European in origin, the continuingdecline in the value of the euro has prompted extra sales volumes as theybecome more affordable.• Second, the decisive movement of luxury brands into digital offerings hascreated added interest and accessibility.• Third, products for men have grown dramatically, outpacing the largermarket for female products.• Fourth, the fact that luxury brands do have overt heritage andcraftsmanship as part of their DNA has been leveraged more explicitly, withsignificant movement of high-end manufacturing returning to Europe (atrend also helped by the weakening euro).With healthy demand, brands have expanded their presence. They haveopened new stores, engaged with e-commerce and invested in advertising.Burberry, for example, extended the brand’s appeal, creating a youthful virtualworld in which customers experiencethe brand by viewing fashion shows,for example. The brand added anew twist to its iconic trench coatwith Burberry Bespoke, an onlinefacility that enables the customer toassemble a unique trench coat online,selecting style, fabric, colour and otherindividualizing options.Brands have also attempted tounify the advertising and onlineexpressions of the brand with the in-store experience. Louis Vuitton, for example, designed a store on Marina Bayin Singapore to resemble a cruise ship, reflecting the brand’s travel heritage,which is also celebrated on the LV website. Many luxury products companieswant to take greater control of the brand, shifting away from licensing andfranchising. Burberry, Prada and Hermès are good examples.Emerging Luxury StrategiesTheLouisVuittonstoreonMarinaBay,Singapore
  • Emerging strategiesThe core conundrum facing luxury brands, however, remains the same. Theymust achieve the right balance between protecting the exclusivity that, to anextent defines luxury, and making the brand experience accessible to a wideraudience. The implications will vary from brand to brand but it is possible toidentify five clear themes for luxury strategists:• While a great deal of focus is going into expanding owned-stores networksin fast-growing markets, leading brands are investing significantly increating new or revamped flagship stores in Europe. Nothing beats thecachet of buying a luxury brand in its home market.• As demand grows, many brands are more clearly segmenting their ranges,whether it is by age or price or gender, in order to preserve the aspirationalappeal of the mother brands, as well as taking direct control of the customerexperience through owned-stores networks.• Luxury brands are finding they need to become experts in managing wide-ranging portfolios. The leading luxury brands are now enormous businessesin their own right, and have to reconcile the competing demands of theartistry and specialization that created the brands in the first place with thepressures of managing and generating momentum for big business.• The distinction between luxury and fashion brands is becoming increasinglyblurred, which opens up new opportunities. Indeed, a common hallmarkof successful luxury brands is the ability to bridge multiple product sectors.Those that stay too wedded to their roots risk being left behind. Standingstill is not an attractive option.• Finally, the increasing accessibility of major luxury brands (whether it isthrough growing store networks, wider product ranges and prices, orsuccessful social media initiatives) is creating opportunities for niche, super-exclusive brands to spread their wings. It will be fascinating to see howthe future competition between Rolex and Patek Philippe will develop, forexample.The one certainty for the luxury market is that the appetite of the world’smiddle and upper middle classes for luxury products is a long way from beingsated.Article is reprinted with permission from aJune 2012Warc exclusive, www.warc.com/Emerging Luxury Strategies
  • hen the Costanera Center is inaugurated, notlong from now, Chile will have the tallestbuilding in Latin America. The 70-story tower ispart of a mixed-use complex of retail and shopsin the financial district of Santiago.Chileans refer to the area as “Sanhattan,” a reference to Manhattanand a symbol of how rapidly the country is reaching higher levels ofdevelopment, with fast highways, enormous shopping malls and tallskyscrapers.As income increases at all socio-economic levels, people throughoutChilean society enjoy greater access to products and services thatin the past were out of reach for many. Cars, smartphones andelectronic devices are widely available. Going out to dine or havea drink is no longer restricted to a few; flying domestically or evenabroad is not only a privilege of the richest.And the consumer has become more engaged with technology.Mobile phones have long exceeded 100 percent penetration; manypeople now have smartphones. Notebooks, digital cameras, portablemedia players and tablets have become necessities rather thanluxuries. Home computers and Internet connection are common.Chilean statistics on the use of Internet and social networks—mainly Facebook—tend to resemble those of developed countriesrather than regional neighbors. That’s because the shopper needsto be connected. Social networks are already a part of daily lifeand consumers link to brands through them. Consumers use socialnetworks to learn more about products and services, and most of allGrey Group is among the world’s top to contact other consumers andshare experiences.Retailers extend influenceRetailers have a lot to do with all these changes. They haveformalized trade, moving most transactions from the traditional“mom and pop” economy to supermarkets and shopping malls. Andthey’ve extended their influence throughout South America. Chileanretailers operate in Peru, Argentina and Colombia and are planningexpansion to Brazil and Mexico.They also have helped improve the lives of most Chileans, providinggreater access to products by providing credit. Retailer credit cardsare accepted widely and are twice as numerous as bankcards.Economic progress recently has been punctuated by several majorscandals involving retailers and by protests against the governmentdemanding greater equality of opportunity. The retail scandalsinvolved a pharmacy charged with price fixing and a clothingretailer accused of revising credit debt without informing its creditcard customers. Students have held street demonstrations arguingfor a more equitable education system.WBy Rodolfo Levin, General Manager Cadem Advertising, Millward BrownA nation of connected consumerssymbolizes“Sanhattan”newChilein South America, and in many ways follows the trends of more developedmarkets. Most Chileans access the Internet by PC, although 13percent ofChileans now access it via mobile.Time online is heavily focused on communication and entertainment, with 6.6hours a week spent on social networks such as Facebook. Chileans particularlylike consumer-generated videos, more often than not shared on YouTube.And 45 percent of the online population view these videos on a weekly basiscompared with only a third of consumers who view professionally createdvideos.In most markets, consumers decide to become a friend of a brand because ofa special offer or promotion. In Chile, however, 41 percent of consumers aremore interested in finding out further information about a product or service.Chileans are less active in both writing and reading about brands on theInternet, compared with consumers in many other countries. However,41 percent of Chileans use a brand website during the purchase journey,indicating that companies must provide sufficient brand and product-relatedinformation for the consumer both pre and post purchase.Brand websitesinfluence purchasingTNS Digital LifeFigure 1: Internet Investment2005 2006 2007 2008 2009 2010 201140bi35bi30bi25bi20bi15bi10bi5bi030%TV still receives more than 50 percent of media investment in Chile, but Internet isgrowing sharply because such a large proportion of the population has Internetaccess and is engaged on social networks. Internet investment reached 35 billionChilean pesos (US$68 million) in 2011, compared with only 5 billion Chilean pesos(US$10 million) in 2006.Source: Mindshare, ACHAP (Acociación Chilena de Agencias de Publicidad)Investment(ChileanPesos)6.6 Social Networking2.8 Email1.6 Multimedia & Entertainment1.0 Online Gaming2.1 Personal Interest0.2 Shopping0.4 Pre-purchase Browsing2.0 Knowledge & Education1.3 News, Sport & Weather0.6 Personal Admin0.7 Planning & OrganisingFirst published in the 2012 edition ofWPP’s BrandZTop 50 LatAm reportPeople in Chile predominately spend their online time engaged in communication,particularly social networking, and entertainment. This devotion to social networkingis consistent throughout Latin America compared with other parts of the world. Forbrands it provides opportunities to connect with consumers through social networks orentertainment 24/7.
  • onsumers in Colombia are rapidly becoming moreengaged with brands.The change reflects the country’s new economicreality. Consumption in Colombia increased 12.8percent during 2011, and GDP grew 6.1 percent,according to Colombia’s National Federation of Traders (FENALCO).The country’s overall economic development, including increasedforeign investment and consumer access to credit, continues tostimulate strong growth.As consumers encounter brands more often at many multi-channeltouch points, Colombia is shifting from a country where consumerssimply purchase products to a market where consumers identifywith brands.This heightened awareness of brands has created a more demandingshopper and a more complex marketplace with brands competing tobest understand shoppers and most effectively meet their needs andwants.Time spent on social media growsAn important cultural shift—increased technical literacy—informsthis greater involvement with brands. As PC use and Internetaccess expands rapidly, the exposure to information and knowledgeproduces profound societal change.In the last 15 years, Colombia transformed from a closed countryto a partner in free trade agreements with some of the world’slargest markets. Internet and cable TV superseded television asthe preferred electronic medium, providing Colombians with widerexposure to products and services—and brands.More than 96 percent of Colombia’s online population uses socialnetworks sites, according to ComScore. The use of social networks tocommunicate with consumers is experiencing double-digit growth,according to the Colombia’s Interactive Advertising Bureau.Also, among all countries in the world, Colombia ranks seventh innumbers of hours spent on Facebook, averaging 8.4 hours per month,surpassing even Mexico and Brazil, according to the 2011 FireflyMillward Brown global study of social media. This penetrationreflects how social media connects with a national culture thatvalues entertainment, social connections and a sense of belonging.Great opportunity awaits brand marketersThese findings have driven increased interest by brands to betterunderstand how to develop the appropriate digital strategies tomaximize ROI. Brand marketers have a great opportunity to reachColombian consumers on social media for two reasons.First, Colombian consumers are actively engaged in social media.The country has one of the highest Internet penetration rates in theregion. Second, the country has one of the lowest investment ratesin digital media. In 2011, only 0.9 percent of the communicationinvestment was in digital compared with 7 percent in Mexico and 6percent in Brazil, according to GroupM research.There probably are several reasons for this disconnection betweenthe high level of consumer digital engagement and the low level ofinvestment. The most likely explanation is that Colombia’s image, asa country gripped by violence, has not caught up with Colombia’snew reality as a fast growing economy.The conclusion for brand marketers should be clear: In Colombia,there’s a large group of potential customers online who areinterested in brands and there’s relatively little clutter preventingyou from reaching them.CBy Gabriel CastellanosManaging Director Andean Region, Millward Brown ColombiaEconomicGrowthDrivesBrandAwarenessMarketers reach consumers with social mediaFirst published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report
  • razil’s rising middle class increasingly drives the growthof brands. More than 100 million people, or about halfthe country’s population of roughly 191 million, now areconsidered middle class.These households earn an income of at least 1,128 Reais per month(US$727), which locates them in socio-economic Class C, Brazil’sofficial designation for middle class. Many of these households haverecently risen from poverty, which the Brazilian government callsClasses D and E. Households in Class D earn around 798 Reais permonth (US$514); those in Class E earn less than 486 Reais (US$313).Even with fluctuations in the economy, these changes are narrowingthe inequities of Brazilian society, expanding the number of peoplein the middle while reducing the ranks of both the very poor and thevery rich, and exposing many more people to consumer goods andbrands for the first time.pOLiCiEs and prOgraMs drivE ChangEThe economic stability resulting from the Plano Real (1994)drastically reduced the runaway inflation of prior years toacceptable levels. With inflation under control, Brazilian consumersfeel more inclined to save or purchase on credit. Other factors thatcontribute to the health of Brazil’s economy and the overall rise inincome and purchasing power include:• The steady growth of GDP (US$2.2 trillion; US$10,800 per person),demonstrating the evolution of the country’s productivity;• The availability and ease of obtaining credit; and• The strength of the Brazilian Real, which facilitates access toimported brands and opens up the possibility of tourism outsidecountry.Particularly significant is the government’s anti- poverty programcalled Bolsa Família, which provides supplemental financial supportto more than 12 million underprivileged families throughout Brazil.The families access the funds with a government-issued ID thatacts like a debit card. Bolsa Familia changes how people shop andincreases their purchasing power. Using the card frees a family fromshopping daily with available cash or being dependent on store-issued credit, sometimes at high interest rates.Brands OFFEr MOrE than BasiCsBrands traditionally treated the middle class as if it representedlimited sales potential. Brands served these consumers withsimpler packaging and smaller sizes, offering the basic benefits ofthe respective category and no added value, with the intention ofkeeping prices affordable.Today, the nature of the middle class has changed. Middle classindividuals desire premium products and can afford them. Theyconsider high added value brands as a basic part of the householdneeds. Brazilian consumers prefer the leading brands, withappealing advertising, strong equity and good distribution.Disposable income not only has increased purchasing, it haschanged the composition of the shopping basket. Certain items, suchas dairy cream, ready sauces, facial and body creams, seasonings,chocolate mixes and yogurts, had been purchased only occasionally.Now they are part of the family’s habitual grocery list.MOrE Luxury gOOds and sErviCEs avaiLaBLEShoppers fill “wants” as well as “needs.” Beauty and cosmetic retaildepartments are more prominent, even in stores with lower incomeclientele. Similarly, the number of salons recently opened in lessprivileged neighborhoods is extremely high as women increasinglyspend money to beautify their hair and nails. They believe thatspending on appearance is an investment and part of the process ofsocial inclusion, according to qualitative studies by Firefly MillwardBrown.Economic stability also has opened up access to aspirationalconsumer goods. The dream of acquiring a brand new, low-pricedcar can become a reality in 60 or more installments with few formalprerequisites. The payment of the installments—“the amount I amable to pay”—is viewed as a form of savings, even if the interest rateand final total amount paid can be excessive.Getting into debt, making too free use of credit or credit cardshas always been a serious threat for those with limited financialmeans. Credit has become an option, however, because of reliableemployment and income stability. Despite easy access to credit andthe widespread availability of credit cards, lower income consumersremain somewhat skeptical of the financial institutions that deniedthem credit in the past.thE nEW MiddLE CLass has ChangEd rEtaiLingThe collective clout of middle class consumers has influenced majorretailers to reevaluate their standard formats and focus their effortson the growth of so-called “atacarejo,” a hybrid model combiningwholesale and retail in no-frills megastores.At the same time, the major retail groups have begun to invest insmaller stores with limited assortment intended to convenientlyserve the more immediate needs of local residents.Regardless of expectations about the global economy, Brazil’s newmiddle class is not a passing phenomenon. It expects much and itsexpectations will influence brands and corporate strategies for along time.BBy Aurora YasudaBusiness Development Director, Millward Brown BrazilAnd how new expectationsimpact brandsTheRisingMiddleClassFirst published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report
  • exico offers excellent conditions both for businessand investment.With over 113 million inhabitants, Mexico is thelargest Spanish-speaking country in the world. Thepopulation is geographically concentrated. One-quarter of the nation lives in one of three cities. About 20 millionlive in Mexico City. Guadalajara and Monterrey each have over fourmillion inhabitants. With a median age of 26, Mexico is relativelyyoung.And people are connected, with 94.6 million mobile phone numbersand 11.5 million cable and satellite TV homes. Internet users total34.9 million. Open to international trade, Mexico ranks second in theworld in number of free trade agreements. These agreements grantMexican businesses preferential access to over one billion customersin 43 countries.Mexico is the world’s largest silver producer and ranks sixth in oilproduction. It’s a major tourist destination, having the most UNESCOWorld Heritage Sites in the Americas and ranking fifth worldwide.By 2020, Mexico will become the world’s seventh largest economy,contributing 7.8 percent to global GDP, Jim O’Neill, Chairmanof Goldman Sachs Asset Management, predicts. He based thisprediction on the fact that, despite the recent global financialcrisis, Mexico’s economy has maintained its stability and in severalvariables has shown evident signs of recovery.Economy evolving to innovation focusThe Mexican economy is evolving to the third and most evolvedstage of economic development, a focus on innovation, according tothe Global Competitiveness Report 2011-2012 of the World EconomicForum, which places countries such as Argentina, Brazil and Chile inthe same category.The report also credits Mexico for reducing government regulationsand improving the conditions for doing business, although it notesthat security continues to be a difficult issue. Many companies thathave transferred their manufacturing processes to Mexico say thatthe country reduced their labor costs significantly.They credit the country’s infrastructure for helping to optimizedistribution costs. That infrastructure includes 26 domesticairports, 59 international airports, 16 international seaports, 27,000kilometers (16,800 miles) of railways, 123,000 kilometers (76,000miles) of roads and 52 crossing points to the US.Changes influence brand trendsThese economic changes influence brand trends. “Olympic” brandssuch as Coca-Cola and Apple are still the most popular among thegeneral population. However, there is a large group of brands that ismigrating towards a “Niche” or “Specialist” space in which they servea specific group of people. In a country as large as Mexico, it’s hardto find brands that appeal to the entire population. Two recent brandtrends reflect changing consumer living styles and focus especiallyon two areas: practicality and personal health.People are busy. They hardly have enough time in a day to getthings done at home or at the office, care for family and friends, andthen find time for themselves. They look for time-saving productsthat help them better manage their busy lives. This practicalityis apparent in products like ready-to-eat meals, such as granolabars and drinkable yogurts, as well as in all-in-one shampoo andconditioners and fast-dry, long-lasting nail polish. People also nowrealize that while leading busy lives they’ve adopted some unhealthyhabits. They’re looking for ways to improve personal health.This interest can be seen in products such as vitamin-enhancedcereals, body lotions made with natural ingredients, low-sugar softdrinks and chocolate bars and more natural foods.TV remains key, but Internet growing fastOf all product categories, personal health leads in advertisingspend, followed by cellphone services and banks. Genomma Lab, apharmaceutical company, is Mexico’s number one advertiser,spending more than P&G, Unilever, Colgate-Palmolive and Bimbo, thebakery brand, together.TV remains the predominant media channel with overwhelmingdominance. TV accounts for 62.5 percent of advertising mediainvestment compared with radio, its nearest rival, at 9.1 percentmarket share. The other channels and their shares include:outdoor, 8.9 percent; newspapers, 7.8 percent and Internet, 6.9percent.Internet is growing at the fastest pace, with 17.8 percent year-on-year growth in 2011, followed by cinema at 14.9 percent growth andoutdoor at 8.9 percent. TV spending grew 5.4 percent in 2011, afterthree consecutive years of decline.By Fernando Alvarez Kuri, Director, Millward Brown OptimorMLargeandOpenMarketOffersOpportunityNew consumer trendsemerge as economy expandsLargeandOpenMarketOpportunitiesNew consumer trends emerge aseconomy expandsFirst published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report
  • PP social media monitoring company, VisibleTechnologies, carried out an audit of the digitalsocial and traditional buzz for each of the Top100 brands over the last year. From this we havecreated an “Earned Buzz Index”, weighted bypositive mentions, together with the MillwardBrown BrandZ™ measure of online fans (FanZ Index).As might be expected, the brands with more fans created more“Earned Buzz.” But the crucial finding is that brands with more fansand “Earned Buzz” levels are much more valuable. And brand valuegrowth is significantly better if buzz is better. The Top 10 “EarnedBuzz” brands grew on average by 5 percent in value last year, whilethe bottom 10 declined 8 percent.The future also is brighter. The Brand Momentum Index measuresthe prospects of future earnings on a scale of 1 to 10, 10 being themost positive score. The Top 10 “Earned Buzz” brands averaged ascore of 8 in Brand Momentum compared with a score of 6 for thebottom 10.So what are the“Earned Buzz”Top 10 brands?They are completely dominated by US technology brands, and eventhe one retailer, Amazon, is fundamentally a technology brand. Theentertainment brand Disney is also becoming heavily dependent onthe digital space.WBy David BarrowcliffSpecialist: Social Media Measurement, Millward BrownThe 2012 BrandZ™ Top 100 Most ValuableGlobal Brands comprises many of the greatand the good, the different and the special,and the most talked about.Buzzmeansmoney:Social and digital media,vital to the health ofsuccessful brands2012 BrandZ™ Top 100 in groups of 10 by level of“buzz.”Brands with higher value have more fans and more“Earned Buzz.”More buzz and fans means more valueTHE“EARNED BUZZ”TOP 10RANK CATEGORY BUZZ INDEX(average 100)1 FACEBOOK 1,3312 GOOGLE 1,2293 APPLE 1,0934 eBAY 4755 microsoft 4426 sony 4377 amazon 4258 samsung 3019 HP 28210 DISNEY 280FANZVALUE $511bn$112bnEARNED BUZZFirst published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report
  • EVERY BRAND HAS A PERSONALITY.It’s part of how consumers perceive the brand and how the branddifferentiates itself from the competition. Accurately understandingbrand personality is important to brand success. That’s whywe created a vocabulary for quantifying and describing brandpersonality. Recently we’ve added a related visual language calledBrand Toys (Please see Brand Toys).Being able to measure something as important—but as intangible—as brand personality enables brand owners to ask importantquestions that can strengthen competitive advantage:Understanding brand personality also helps select the mostappropriate message and media, or more effective and suitablesponsorships or partnerships. Ultimately, understanding a brandpersonality enables the brand owner to deliver a consistent brandexperience that connects with consumers and leaves a deeper andmore sustainable impression.Brand personality characteristicsoften suggest a brand’s latent appeal.When identified and cultivated theycan effectively guide the creative toneof communications. For example,Mercedes is relatively “assertive” and “incontrol,” while BMW is more “sexy” and“desirable.”The brands have differentand differentiating personalities.Mercedes confidently plays on itsheritage with the fitting tagline, “TheBest or Nothing.” In contrast, “The Ultimate Driving Machine”accurately captures the BMW personality.BackgroundAs part of our extensive and on-going global BrandZ™ research,we measure the personality of thousands of brands. We base theresearch on authoritative psychological personality profile testing.Adapting the results to be relevant for brands, we ask, if the brandwere a person what kind of personality would it have?We begin with 20 personality characteristics. Then we combine thecharacteristics into 10 brand personality archetypes (ReferenceBrand Archetypes chart below). For example: The related personalitycharacteristics “generous” and “caring” combine into the brandpersonality archetype “Mother.” Similarly, we use the brandarchetype “Hero” to represent brands that are “adventurous” and“brave.”Brand archetypesThen we take one more step. After combining brand personalitycharacteristics into brand archetypes, we show how the archetypesrelate to each other by lining them up along two axes: the polaritiesof one axis are stability and change; the other, well-being andchallenge. For example: The archetypes “Dreamer” and “Joker” areassociated with change, while “King” and “Wise” are more aboutstability. Similarly, the archetype “Mother” represents a mix ofstability and well-being, while a “Seductress” is both challenging aswell as a potential driver of change.Brand personalitycharacteristics oftensuggest a brand’slatent appeal.Mercedes is relatively“assertive” and “incontrol” while BMWis more “sexy” and“desirable”By Peter WalsheGlobal BrandZ™ Director, Millward BrownCHANGESTABILITYCHALLENGEWELL-BEINGIs the personality consistent worldwide? If not, how does it vary?Is it unique and can it become more unique?What is the brand’s personality?Brandpersonalitycharacteristicsarecombinedinto10brandarchetypes,whicharethenarrangedaroundtwoaxes.Source: BrandZ™ dataMercedes’assertivepersonalityinfluencestheircreativetoneBrandArchetypesBrandPersonalityUnlocking key traits forsuccess and valueJOKER Fun, playfulSEDUCTRESS Desirable, sexyREBEL RebeliousHERO Adventurous, braveWISE Trustworthy, wiseSTABILITY In control, assertiveMOTHER Caring, generousFRIEND Straightforward, friendlyMAIDEN Innocent, kindDREAMER Idealistic, different, creative
  • Archetypes and successBrand archetype doesn’t by itself determine success. And successfulbrands can fit anywhere on the spectrum of archetypes. Butinevitably some brands are just more compelling. The recentBrandZ™ Strength of Character analysis of over 14,000 brandsworldwide identifies several archetypes that, in diverse ways, areassociated with brand success.The “Wise” archetype (particularly trustworthy) is mostunequivocally correlated with brand success. “Wise” brandsinclude Google, China Mobile and Visa. The Seductress brand (sexyand desirable) is more of a specialist but revels in being distinct,different and attractive. It describes L’Oreal, Louis Vuitton and Zara.In contrast, the “Maiden,”“innocent” and “kind,” is not as strong.Many retailer own brands fit this brand archetype. “Friend” brandsare “friendly” and “straightforward”, and usually very well known.They include Airtel, the Indian telecom, Home Depot and KFC. But“Friend” brands generally are declining in equity.Archetypes and equityBrand archetypes correlate with brand equity. Brands with thesearchetypes— “Seductress”, “Wise,”“King” and “Mother”—typicallyhave strong brand equity. In contrast, brands with “Joker,”“Rebel”and “Maiden” archetypes have lower equity. There are exceptions, ofcourse, but the rule is useful (Reference Strength of Character chartbelow).On average, the BrandZ™ Top 100 most valuable global brands fallin the middle of the Strong Equity quadrant of the Strength ofCharacter map, between the “Wise” and “King” with a strong doseof the personality characteristic “desire,” which is an aspect of the“Seductress” archetype. In personality, the Top 100 brands are onaverage, significantly more “incontrol, “assertive,”“trustworthy,”“wise” and “creative.”In terms of brand archetype,the Top 100 can be summarizedas “Wise Kings.”This summaryis especially true of the B2Bleaders. IBM, is a “King” becauseof its high levels of “trust”and “wisdom” together withits “idealistic” positioning.Exxon Mobile is also a “King” but less “idealistic” and much more“assertive,” while Royal Bank of Canada is an “in control”“King.”As noted, there are exceptions to the rule and they include someof the most valuable brands that define their category. As theapproachable “Joker,” Facebook is “fun,”“playful” and “friendly.”The “Dreamer” Apple is “creative,”“adventurous” and “desirable.”Red Bull, the “Rebel,” is “adventurous” and “brave,” if a bit“arrogant.” Being “straightforward,” which implies honesty, is a keycharacteristic of the “Friend” archetype, which describes Amazonbecause of its great service, range and recommendations. Beingseen as “generous,”“kind” and “caring” makes Colgate the ultimate“Mother” brand archetype.Understanding a brandpersonality enables thebrand owner to delivera consistent brandexperience that connectswith consumers andleaves a deeper and moresustainable impressionStrengthofcharacterGROWINGEQUITY STRONGEQUITYDECLININGEQUITYCHANCESOFSUCCESSRELATIVEFAMETOP100AVERAGELITTLEEQUITYBrandarchetypescorrelatewithsuccessandequity.Source: BrandZ™ dataBrand Personality
  • Brand PersonalityBrand Toys provide a new toolfor understanding brandsAs visual representations of brand personality, Brand Toys stimulate creativethought that can lead to new marketing and strategic insights.Brand Toys are created based on brand personality characteristics from BrandZTMdata combined with an index of social media buzz. This information dictates theBrand Toy’s size, shape and expression. Eyes widen to indicate charisma, whileheight increases and legs thicken to project trustworthiness, for example. Variousbody shapes signify the brand’s potential and its familiarity. Expressions change oraccessories are added to suggest various qualities. Depending on style, a hat mightsymbolize assertiveness or caring.For example: BrandZ™ data says Coca-Cola is particularly“desirable,”“adventurous”and“fun.”The Coca-Cola Brand Toy has the sunniest disposition, a“smiley”badge, a“lipstick” kiss on its cheek and is clearly a fun toy. The Brand Toys visualization is aseffervescent as the drink. It overflows with smiles. Although the Coca-Cola brand ismore than 125 years old, its Brand Toy reflects the ever-youthful image that helpsCoca-Cola hold its own in brand value with newcomers such as Google, Amazonand Facebook. It commands a good price premium but is rated as very well pricedbecause of the immense desire the brand creates. Happiness for the shareholderscomes in an investment that is Coca-Cola shaped.In contrast, UPS, which is particularly “in control,” “trustworthy” and “wise,” is anapproachable hulk, with thick trustworthy legs, bright open eyes suggestingconsiderable charisma, and a careful tie and prize winning ribbon, which alsorecognizes trust. The Brand Toy is holding a timepiece to show reliability andpunctuality in taking care of you and your shipping.www.brandtoys.comFirst published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report
  • d effectiveness studies have been used for morethan a decade to measure the branding impact ofonline campaigns. Results from these studies, aswell as aggregate industry knowledge, have helpedadvertisers design better media plans for futurecampaigns. Enter real-time data, which allows usto learn what’s working in a specific campaign, and make changeswhile it’s still in market. These changes help advertisers savemoney by reducing wasted, ineffective impressions and ensuringthat the right message is delivered to the right consumers. But,there are rules that should govern the correct way of optimizingonline branding campaigns and at the end of the day; optimizationis part data and part instinct. The numbers alone shouldn’t be theexclusive guide to your decisions. Common sense and experience areoften just as important and should guide you through the followingconsiderations for campaign optimization:DEFINE CAMPAIGN SUCCESS CRITERIA AND KEY PERFORMANCEINDICATORSHow will you know that your campaign is effective or not effective?What should you be looking for? Is any incremental increase in themetrics going to be sufficient? These are all important questions toanswer prior to making any changes to your campaign mix. Whenassessing performance of sites or creative formats, benchmarks areinherently built into the campaign because you can compare eachone against each other. However, shifting impressions around withina failing campaign is a waste of time. Campaign-level normativebenchmarks are useful to assess whether your campaign, as a whole,is among the top or bottom performing campaigns in the brand’sindustry. Normative databases can be used for benchmarking aswell as planning what magnitude of change to expect. It’s importantto use not only normative data, but also your own experience withthe brand, to create hypotheses of what results you expect fromthe campaign. This will give you something specific to test against.Often, testing a more quantitative goal, such as “increase purchaseintent by X points,” results in more insightful findings than just“increase purchase intent.”ASSESS WHAT YOU HAVE THE POWER TO CHANGESites’ insertion orders usually include an impression levelcommitment, so a change as drastic as pulling a site from thecampaign usually isn’t possible. However, agencies can usuallymove impressions across sections or placements within a site.Agencies with longer-term site contracts can also sometimes shiftimpressions from one campaign to a future campaign if the siteappears to be a poor fit for the campaign in question. If there aremultiple creative executions in the campaign, agencies can easilyshift impressions between iterations, especially within the samesize unit. If a campaign is really performing poorly, though, often achange to the creative design isneeded. Ideally, creatives should bepre-tested to ensure that the bestexecutions go into field to beginwith, minimizing subsequentchanges.There is a lot of emphasis inour industry on mid-campaignadjustments because onlinecreative can be redesignedinexpensively and relativelyquickly. The reality, however, is that this seldom happens andresults in a lot of money being wasted on ineffective media. Thebest practice is to put pre-tested creatives into field, and include thecreative agency in your optimization plan so that they can be “oncall” to make tweaks to the design if the results suggest it’s needed.When setting up an ad effectiveness study for yourcampaign, remember to communicate to your research partner whattypes of changes you’re considering so that they can design anappropriate sampling plan, survey, and results dashboard againstthe objective.ABy Michelle EuleSenior Vice President, Digital Solutions, Millward BrownIdeally, creativesshould be pre-testedto ensure that thebest executions gointo field to beginwith, minimizingsubsequent changesWhyOptimizationisPartDataandPartInstinct
  • MINIMIZE CHANGEThe ability to optimize should never replace thoughtful mediaplanning prior to the campaign. Throwing everything in and waitingto see what works will result in a lot of wasted media spend. Thebest campaigns will usually be those with the best initial mediaplan, and optimization will involve simply fine-tuning the mix.Complete overhauls should be limited to rare disasters, and mostcampaigns should require limited changes.DON’T MAKE HASTY DECISIONSIt’s tempting to start making changes just a few days into acampaign in order to benefit early from optimization and reducewaste. But, branding effects don’t set in overnight. Frequency isone of the most important factors in campaign performance. Acomparison of message association impact on CPG campaigns showsincremental increases in impact from the first exposure to more than10 exposures.Lauren Hadley, associate director of integrated insights at Starcomsays, “Let the campaign build how it was planned to build. Don’toptimize prematurely.” Optimal frequency levels vary by industry,brand tenure, campaign objective, and even creative format. Forexample, the results in the chart above suggest that changesshouldn’t be made before at least four exposures have been deliveredto a majority of a CPG campaign’s audience. Analyze historicalnormative data to home in on the optimal frequency level to expectfor your brand’s campaign.KNOW WHEN TO SAY“WHEN”Don’t over optimize. Observe, change, observe. Stop. Observe, change,observe. Stop. We recommend two sets of optimization periods perthree-month campaign.USE TRUSTED DATABe cautious about the quality of the data that you’re using. Don’tbe tempted by cheap studies that sacrifice the quality of the datathat’s delivered. Shorter surveys are best for optimization becausethey garner higher response ratesand, therefore, earlier results. But asurvey that’s too short and only asksone or two questions can leave you inthe dark about who the audience is,and whether the results are reliable.In ad effectiveness studies, it’scritical that the control and exposedgroups are recruited from the samesites and have similar audience profiles. Demographic and categoryusage questions, and some amount of weighting, are usually neededto further match the two groups. Look for a research vendor thatweights the data in real-time so that you can view valid data at anypoint during the study.TRAIN MEDIA PLANNERS ON HOW TO USE SURVEY DATAUnlike clickthrough data and other sources that are collected at theimpression or user level, interpreting survey-based data requiresexpertise. Individual data points might represent mere anomalies, soconclusions should be drawn based on larger samples and repeatedtrends. If a particular creative unit on a specific site is performingwell, look to see whether other units of that size, or other units onthe same site are performing similarly. Also look at whom that unitis reaching. Is it reaching the desired target audience, or is it beingdelivered to many people who are not relevant to the brand?Sample size is also critical. We suggest a minimum of 50 respondentsper cell before making any decisions. With a smaller sample size, theresults are very unstable and each incremental respondent can shiftthe data quite drastically.CONSIDER THE RELATIVE COST PER PLACEMENTWhen evaluating the relative performance of each creative, siteor placement, consider the relative price paid for each. Whilevideo units may often perform better than standard display units,for example, the higher cost may not justify the incrementalbranding impact. According to Joe Rose at MediaVest, “Cost-per-increase is a better measure of success than branding metricincreases on their own, and is more in line with how we interpretperformance for direct response campaigns.”When designing abranding effectiveness study, talk to your research partner aboutincorporating prices to calculate cost-per-increase metrics.Don’t be temptedby cheap studiesthat sacrifice thequality of the datathat’s deliveredFirst published in the May 11, 2012 edition ofiMediaConnection, imediaconnection.comExposuresControl 1 2 3 4-9 10+Why Optimization is Part Data and Part InstinctFigure 1: Strength of message association by frequency of exposure19.9% 21.1% 21.2% 21.9% 23.3% 26.1%
  • espite the strong growth of online advertising overrecent years, brand advertisers continue to punch wellbelow their weight when it comes to share of onlineadvertising spend. New Australian data from DynamicLogic, a Millward Brown company, has found thatwhile online advertising can help to build brands,advertisers need to understand the balance between impact and overexposure, particularly when it comes to the use of video.The MarketNorms data, which was based on more than 80 Aussiebrand campaigns conducted over the last three years, has foundthat a strong online brand campaign can be up to four timesmore effective than an average brand campaign. With such a hugediscrepancy, it’s worth diving deeper to understand the three keycomponents that combine to make a strong online brand campaign.It’s worth first noting that behavior based online metrics such asimpressions, clicks, and acquisitions, while important for directresponse, do not measure changes in attitudes and perceptionstowards advertised brands, so they should be of little concern forbrand advertisers.The first element of a successful online brand campaign revolvesaround the use of video and rich media to create impact. Just oneappearance of a video ad was found to perform better than any othertreatment when it comes to persuasion, building brand favourabilityand increasing purchase intent. Interestingly, other high impactplacements such as OTPs and skins have shown equally positiveimpacts in Australian online brand advertising.While the research shows that video and high impact formatssupport positive results, marketers need to walk a fine line. BothAustralian and global data shows that with over-exposure, highimpact formats can actually drive attitudes down for a brand,particularly in regards to purchase intent. These results lead to the second element of success for an onlinebrand campaign – integrated planning using multiple formats. Thedata shows that high impact placements used at low frequency butcomplemented with standard banner placements, can extend the lifeof a campaign.  The Australian data from an FMCG case study foundthat purchase intent increased 4.3% when pre-roll was combinedwith flash banners - a better result than either pre-roll or flashbanners alone.The third element of success, strong creative, would seem quiteobvious to most marketers but is often overlooked. In the onlinebanner world you only have one to two seconds to grab a viewers’attention and communicate the brand and message. All the framesof an ad will rarely be viewed as a linear story. Data from ourMarketNorms database shows much stronger brand results forcreative that follows two simple rules:Grab attention quickly and stand out on the page – think“visual hook”and make use of white space and simplicity.Cluttered or wordy banners often get lost on the pageMake every frame of the creative work to convey both thebrand and key message.Before you move to dismiss these elements as self evident considerthis - nearly 40% of Australian campaigns measured did not featurethe brand on every frame and over half did not have the messagepresent across the creative.With more dollars moving to digital advertising, the savvy marketersare gathering online branding insights, not just behavioralmeasures, to improve performance in both media and creativecampaign planning.DBy Mark HenningDirector, Media & Digital Solutions, Australia, Millward BrownOnlineBuildsBrands,IfYouKnowHowFirst published in the June 2012 edition of AdNews, www.adnews.com/12
  • ChallengeBrandChina’sChinese brands mustwork hard to improvedifferentiation andoverseas recognitionif they are to take onthe multinationals,BrandZTMdata shows.
  • TTen years ago, China joined the World Trade Organisation, and someobservers say one hundred years’ worth of societal and economictransformation has occurred since. Millions of Chinese citizenshave evolved into consumers, and China’s contribution to the worldeconomy is now universally acknowledged.Chinese brands have evolved too.The 2012 BrandZTM Top 50 MostValuable Chinese brands ranking was published in December 2011by WPP and Millward Brown. Six of the Brands in the ranking,collectively worth $50 billion, didn’t exist 10 years ago. In the 2011global ranking, the BrandZTM Top 100, 12 of the top 100 brands arefrom China.But it is not all smooth sailing for Chinese brands.They not onlyencounter competition from multinational brands on the domesticfront, but also face challenges in launching themselves overseas.The gap between Chinese brands and foreign brands is narrowing.Over the past decade, Chinese brands steadily increased in value,and the proportion of earnings driven by brand and consumerpreference edged upward. Comparing 2011 and 2012 Top 50rankings, 16 brands improved their brand contribution scores(which indicate the extent to which the brand is responsible forearnings), and none declined.This shift demonstrates Chinese brand building achievements:improvements in innovation, marketing, image building and theability to keep pace with rapidly changing consumer expectationsfor improved products and services. An example is the onlineportal Sina, which created the Sina Weibo Microblog in response toevolving communication needs in the internet era.Not simply a Twitter clone, Sina Weibo is adapting to the market,and its success is reflected in its ranking. Mengniu, a dairy brand,tackles food safety fears by emphasising its healthiness. Fulinmen, aproducer of edible oil and rice, conveys a brand personality evokinga mother’s concern over the health of her family.Sportswear brands such as Anta and 361° have achieved massivebrand salience and have a formidable head start on multinationalbrands such as Nike and adidas in lower-tier cities.By Jason Spencer, Managing Director, Shanghai, Millward Brown,Sirius Wang, New Solution Director & AMAP Knowledge Manager, Millward Brownand Adrian Gonzalez, COO, AMAP, Millward BrownChina’s Brand ChallengeSource: BrandZ™ databaseFIGURE 1 Creating meaningful difference is still the biggest challenge for Chinese brandschina top 50 brandshaving a clear image and being different50%70%GLOBAL top 100 brands
  • Among the Chinese Top 50, half the brands achieved a score in thetop tertile on one or both of those dimensions, while among theGlobal Top 100, 70% achieved such scores. Chinese brands are stillseen as cheaper, while foreign brands are considered different in ameaningful way.Every brand must have a purpose. It must resolve a consumer need,which may be functional, emotional, aspirational or, increasingly,societal. And brands that do this in ways that are meaningfullydifferent from other brands have the opportunity to build significantvalue.Yunnan baiyao, a brand with a century-long heritage of traditionalmedicine, is an example. Its brand value comes not just fromheritage, but also from the differentiation that heritage can confer.Brands that can genuinely claim a long and unique history andcombine that history with meaningful differentiation can buildbrand relationships with consumers that are strong enough tosustain premium prices and withstand threats from imitators.Pingan, China Merchant bank and Hainan airlines are also goodexamples of differentiating from local competition by emphasizingcustomer service.Chinesebrandsarelesslikelytoachievehighscoresonhavingaclearimageandbeingdifferenteverybrandmusthaveapurpose.Itmustresolveaconsumerneed,whichmaybefunctional,emotional,aspirationalorsocietalChina’s Brand ChallengeMultinational brands have already felt the increasing success ofChinese brands. A recent survey by The Economist, conducted among328 senior executives at non-Chinese MNCs, found that only 22% ofrespondents considered Chinese firms “not a threat”. That’s a third ofthe percentage who were unconcerned about Chinese brands in 2004.The BrandZTM database – the world’s largest brand equity database –shows similar findings. Conducted in China since 1998, the BrandZTMstudy has surveyed over 350,000 consumers on more than 1,000brands, and over time the data shows a narrowing gap betweenChinese and foreign brands. This is especially apparent in thesecond- and third- tier markets, where Chinese brands dominatemany categories.SPOT THE DIFFERENCE‘Meaningful difference’ is still the biggest weakness. Chineseconsumers are becoming more demanding and discerning in theirbrand expectations. They are increasingly judging Chinese brandsagainst the large array of foreign brands now in China and areexpecting them to deliver more than just price and category entrybenefits.However, even though BrandZTM shows that the gap between Chineseand foreign brands is narrowing in China, a gap still exists. Chinesebrands are less likely to achieve high scores on having a clear imageand being different.
  • ahundredyearsworthofsocietalandeconomictransformationhasoccurredinadecade
  • China’s Brand ChallengeGOING GLOBALSuccess in their enormous domestic market has allowed manyChinese brands to gain enough strength to enter internationalmarkets. Nearly half of the brands in the 2012 Top 50 have overseasrevenue that accounts for more than 5% of their total revenue.Lenovo, one of the most well-developed of China’s global brands,makes about 50% of its income from overseas and is now the world’ssecond-largest PC manufacturer.However, Chinese brands still have very low awareness amongforeign consumers. Beginning in 2010, Millward Brown conductedtwo large-scale studies to understand the performance of Chinesebrands in overseas markets. When people outside China were askedto name Chinese brands, 83% could not name one. Clearly the mainproblem facing Chinese brands abroad is familiarity. BrandZTMresults indicate that in any market, to become a leading brand, anawareness level of at least 90% is necessary. Chinese brands stillhave a long way to go in international markets.Interestingly, developed and developing countries did not showmuch difference in their familiarity of Chinese brands. Apart fromneighboring Malaysia and Australia, countries that are relativelyfamiliar with Chinese brands, developing and developed countrieshave very limited knowledge of brands from China.MATCHING THE MINDSETHowever, our global study found differences between developingcountries and developed countries in some categories, such asmobile communications, financial institutions and insurance.Chinese brands in these categories are not accepted in developedmarkets, but have some success in less-developed countries.To be successful in overseas markets, Chinese brand managers needto recognize that foreign consumers have a different mindset thanChinese consumers. Chinese brand managers will need to developa global perspective and adjust their thinking and strategies if theywant to make foreign consumers feel comfortable with Chinesebrands.One of the common misconceptions held by Chinese brand managersis that the unique cultural elements that support their brands’success in China can be rolled out globally. This is not oftenpractical. Chinese provenance may be acceptable in some categories,such as apparel, where China’s heritage may be an advantage, butin other categories, such as consumer electronics, China is stillperceived as an OEM (original equipment manufacturer).
  • First published in the March 2012 edition ofAdMap ©Admap www.warc.com/admapChina’s Brand ChallengeInChina,consumerloyaltyisdrivenbyperceptionsofpopularityChinese brands also face another challenge: consumer-brandrelationships are driven by different factors in different countries.In China, consumer loyalty comes from perceptions of popularityand what the brand communicates to the world about the consumer.Products and marketing campaigns are crafted to convey this.However, in developed markets, consumer loyalty is derived from amore personal relationship with a brand. Consumers care less aboutstatus than about having their own personal needs met.There are always exceptions, but Chinese brand managers only needto look at the mistakes that multinational brands made in their earlydays in China to understand that misunderstanding consumers canhurt brand building.If they are to succeed overseas, Chinese brands must developemotional connections with foreign consumers.Take a recentcampaign for Haier in Australia.In a series of advertising campaigns for refrigerators, washingmachines and other products, Haier leveraged its brand image oflow price into an advantage, addressing the needs of more practicalcustomers.It conveyed the idea that Haier allows consumers to have moremoney to spend on other pleasures, since they don’t have to pay apremium for Haier.Chinese brands have made remarkable progress over the past 10years. Chinese consumers appreciate the quality and innovationnow available to them, and those who manage multinationalbrands in China and elsewhere have developed a healthy respect forcompetitive Chinese brands.But though their growth has been impressive, Chinese brands havemore work to do if they are to compete effectively in global markets.Their work must start at home, building perceptions of meaningfuldifference.They need to raise awareness among foreign consumersand recognize the varying mindsets and attitudes towards brandsin other countries. A one-size-fits-all marketing plan will not beeffective.However, the China Top 50 ranking showcases a number of Chinesebrands that are acquiring and honing the skills that will make themsuccessful overseas.
  • hen you can connect with friends all over theworld on Facebook and familiar brands greet youin malls across the globe, it is tempting to thinkthat the time is right for truly global campaigns.Ones that are originated and implemented in thesame way everywhere.But the superficial evidence belies significant differences acrossmarkets. So, unless your brand is one of the few that targets ahomogenous global audience, then you must plan from the groundup and your measurement should reflect that local mindset. The“think global, act local” mantra applies to all aspects of the planningprocess, from identifying a common global platform on which tobuild a campaign, to assessing its in-market effectiveness.Today, many brands aspire to implement consistent, globalcommunications platforms that drive sales, boost brand strengthand have a real impact on the bottom line. Expecting the sameefficiencies that are realized in manufacturing, operations andsupply chain standardization companies hope to use the sameadvertising strategy and executions around the world.But all too often the results are disappointing. A campaign that hadgreat promise in one region fails to move the needle in others.The problem is that, while many companies operate on a globalbasis and have become accustomed, if not comfortable, with workingacross countries and cultures, most consumers live very local lives.They shop locally, drop their kids off at the local school and hangout with friends at the local bar. More importantly, they watch localtelevision stations, read local newspapers, and, increasingly, surflocal digital content. It is not just a matter of which media channelsto use.Media consumption differs by country even within channel. InLondon, most people commute by bus or the Underground, sosmaller posters predominate. But in cities such as Los Angeles,where commuters spend hours on clogged highways, biggerbillboards are the norm. And in São Paulo, outdoor advertising isbanned altogether, forcing marketers to seek alternatives to reachtheir audience.Media buying is forced to reflect the diversity of local markets.Even if we wanted to reach a pan-European audience, the resultingplan would be a patchwork of differentchannels and properties. There are veryfew media properties with even regionalreach.And, in spite of many advertisers’ desireto use the same executions acrosscountries, advertising effectivenessreflects the same diversity. Our researchsuggests that very few creativeexecutions have the ability to effectivelytranscend differences in brand status and cultural boundaries, nomatter how much advertisers might wish otherwise.If the role of planning is to bring the consumer into the process ofdeveloping advertising (content and media), then it needs to startwith the local markets and work up, combining knowledge of thetarget consumer within category insights, competitive reviews, andcultural understanding to synthesize an effective campaign that willwork across countries and cultures.By Nigel HollisExecutive Vice President & Chief Global Analyst, Millward BrownWGlocalEvaluation:MeasuringEffectivenessGlobal campaign effectiveness needs tobe measured locally, from the ground up,not the top downOur researchsuggests thatvery few creativeexecutionshave the abilityto effectivelytranscend culturalboundaries
  • Measure from the beginningIf global planning starts from the ground up, so too must ourmeasurement of its effectiveness. And that means starting at thebeginning of the development process, not just when a campaignruns. Unless the strategy and creative idea are relevant and resonatewith the intended audiences, the finished campaign is unlikely toprove effective.Increasingly, advertisers are seeking to identify a communicationsplatform that will inform all creative executions irrespective ofmedia channel or country. But identifying a big idea is a big taskeven before you contemplate the complexity offered by differentcountries and cultures. Dove’s Campaign for Real Beauty resonatedwell in Anglo-centric cultures but failed in Asian cultures, whereconcepts of beauty are still defined by outward appearance. A bigidea fails when it is incomprehensible viewed through a differentcultural lens. Research of all types – qual and quant, observationaland interactive – can all help inform whether or not an idea is likelyto work across cultures.In order to develop a globalpositioning for its Poweradebrand, Coca-Cola adopted a two-stage approach. In the first stage,respondents used an online forumto discuss their sports participationand give their reactions to differentPowerade positioning concepts andthe extent to which these resonatedwith their own experience. Insightsfrom this research were then used to refine five concepts for the nextstage of quantitative research. Importantly, the first stage helpedshift the focus of the campaign away from “winning” to a globallyresonant theme of “performing at your best”.Not only did the research inform the global decision, market-leveldata provides the individual markets with information on how bestto implement the campaign in the way that best fits the local cultureand competitive context. Even when you have identified an idea thatresonates consistently around the world, the next challenge is toexecute against that idea.Johnnie Walker may espouse a consistent global idea of progress,but executions are developed appropriate to the local culture. If theydid not, the global campaign would not be as effective. A recent addeveloped for the Brazilian market shows the mountains of Rio deJaneiro transforming themselves into a giant that strides acrossthe ocean. The slogan is: ‘The giant is no longer asleep. Brazil, keepwalking.’ The ad captures the pride Brazilians feel that their countryis playing a more powerful role in the world.But not every brand has the luxury of developing local content andeven the largest global brands will seek to redeploy ads for marketswith a lower volume potential. In cases like these, the brand mustidentify the execution most likely to transfer from one country anddecide whether or not adaptation is necessary. Measurement canplay a key role in informing decisions related to ad transference.Two main hurdles must be overcome for an execution to be effectiveacross countries and cultures. The first is brand status. All toooften an execution works in one country because it fits the localknowledge of the brand and its competitive standing. But transferthat ad to another country and the context may undermine bothcomprehension and effectiveness. Consistent measurement of brandequity and positioning across countries helps ensure that copy isdeployed only in countries where the brand’s standing is likely toencourage success.The second hurdle is differences in culture. We have all heard thestories about ads that fail because of inappropriate translation, butfar more frequent is failure due to incomprehension. For instance,many ads seek to create enjoyment through the use of humour. Butwhat is funny in one country may be thought childish, banal or evenoffensive in another. And often it is the subtle things that have themost influence: values, customs or lifestyle. Unsuccessful transfer ofan ad from one country to another may be determined by somethingas simple as an idiom that is understood in one country and not theother. The only solution, other than originating ads locally, is to pre-test ads to see whether they will be well-received by the intendedaudience.Importantly, the firststage helped shiftthe focus of thecampaign awayfrom “winning” toa globally resonanttheme of “performingat your best”Glocal Evaluation: Measuring EffectivenessJohnnie Walker: “The giant is no longer asleep” aims to capture thepride Brazilians feel in their country’s more powerful global role
  • Measure in-market effectivenessTurning now to assessing the in-market effectiveness of a globalcampaign, we are once again steered back to the local level wherethe necessary media and sales data are measured. For this reason,brand and ad tracking, cross-media effectiveness research andeconometric modeling are all conducted on a local market basis.Youmight expect social media listening to prove to be the exception tothis rule but, in reality, measuring a global picture proves messy, notleast because platforms and measurement services are regionallyfragmented. And, if you care enough about a market to advertise init, wouldn’t you like to know how the campaign is received by allyour target audience, not just the vocal minority?The market-level approach allows us to understand the effectivenessof media selection and copy within country, but what about theglobal picture? The same campaign may stimulate a very differentresponse across markets depending on consumer attitudes to ads,media clutter, category growth rates and brand sales elasticity.To look at a global picture, we must first compare performancewith country databases and then look at normalized results todraw conclusions about campaign effectiveness. Unfortunately, thisapproach may seem unnecessarily complex to the end-user but it isabsolutely critical if sensible comparisons are to be made betweencountries. For instance, on average, Scandinavians tend to be morenegative in their response to advertising than Poles or Mexicans,while Indians and Indonesians tend to be far more positive. This, inpart, reflects cultural differences, but also attitudes to advertisingin general. This type of difference is not just apparent in attitudinaldata. The sales elasticity to advertising will differ within a productcategory depending on the relative wealth of the population and theeconomic growth rate.This said, consistent patterns do emerge from the data, particularlywith regard to cross-media effectiveness. Time and again - inmany different countries - we see a key role of TV in “priming”mass audiences. This significantly increases response to furthercommunications exposure in another medium. So, in that sense, wehave a global “rule”. However, the clutter levels by country differgreatly, consequently changing the planned frequency needed to “cutthrough” and the volume of GRPs one can put behind an ad beforereaching diminishing returns. This is not just about the size of themedia budget and media owner deals; large sums of productionmoney are bet, very early, on the number of ads to produce, theirlength, their rotation, all based on anticipating frequency anddiminishing returns once deployed on TV.In a growing number of countries, there is increasing value inplanning audiovisual ad exposure across TV and other media,such as online, mobile, tablet and even digital posters in Tier Onecities in China. We see that digital AV adds frequency and someadditional reach among lighter TV viewers. However, the returnsand consequent investment levels must take into account quitedifferent local audience penetration and a variety of online mediaenvironments, sometimes less cluttered than TV, sometimes muchmore. Such things change rapidly and a local eye is needed to ensurereturns are maximized.ConclusionIn these days of doing more with less, the message that effectivemeasurement needs to be conducted from the ground up is unlikelyto prove popular, but neither does it make it untrue. If you reallywant to understand how people respond to your campaign ideas,executions and in-market deployment, you have to do so at the localmarket level.The world is still an incrediblydiverse and complex place, andif you ignore that granularity, itsimply opens up opportunities forcompetitors to take advantage ofyour blind spots. Global brandsare increasingly being challengedin countries like China, India andBrazil by nimbler and more culturallyappropriate local brands. Theirproximity to their customer givesthem an important advantage, not least an innate understanding oftheir culture and the local media and shopping environment.If marketing communication is the equivalent of a brand’sconversation with the world, global brands must be well-informedand tapped into local culture if they are to remain successful. Thatmeans measuring effectiveness from beginning to end, and from theground up.Global brands areincreasingly beingchallenged incountries like China,India and Brazilby more culturallyappropriate localbrandsThere is increasing value in planning audiovisualad exposure across TV and other media, such asonline, mobile, tablet and even digital postersGlocal Evaluation: Measuring EffectivenessFirst published in the June 2012 edition of AdNews, www.adnews.com/
  • ynamic Logic and Millward Brown have long knownhow to measure attitudes and habits as a result ofany marketing activity. We do it primarily throughsurvey-based research. In this voice, the research isguided, quantifiable, structured and replicable. Withthe proliferation of social media data running throughplatforms like Facebook and Twitter, we can now listen to anothervoice of that same consumer, which is observational, unsolicited,un-moderated, and completely fluid. This social voice reveals newinformation and thus new avenues of insight and analysis.We’ve also long known that the attitudes expressed in the surveyhave other cousins – opinions and actions that potentiallydon’t surface in surveys. The future of brand measurement isan exploration into how new social platforms and technologycan garner meaningful attitudinal and behavioral insights thatcomplement and supplement our established survey based researchmethodologies. It’s certainly possible that one day (perhaps notlong from now) this implicit data-driven measurement could evensupersede traditional survey methodologies.Where does the data come from, and what does it mean?The social data universe is hard to size – no one knows how big it is,how much there is, or in some sense, even what the definition is ofsocial. But even as that universe expands, it’s also becoming morecentralized in some significant ways.In the past seven years, Facebookhas won the battle of supremacy: itdefinitively owns our social graph. Withover 750 million users and growing,our real-life social networks, personaland professional, have been mapped.Its near-universal adoption in mostcountries means it’s easier to innovatewithout worrying about replicatingthose same networks from scratch withevery new application or utility. Nearlyevery platform, whether it’s Twitter, Foursquare, or this week’s hotnew startup now takes advantage of Facebook Connect, to bolsteruser experience and adoption, and to create more value for theservice and its users.Deep integration means much more than just a rich user experience:it also means users are constantly generating a stream of datawhich can give us more thorough insight into habits and attitudesthan we’ve ever seen before. Major brands and services have caughton – everyone from Groupon to Ticketmaster to Starwood Hotelsrecognizes the power of these rich data streams, and they arelooking to harness them in a meaningful way that can build theirbrands and grow their businesses. This is the age of Big Data, andbrands are eager to capitalize on it.By Anne CzernekSenior Research Analyst, Emerging Media Lab,Dynamic Logic, Millward Brown’s Digital Practice@annemosityDeep integrationmeans much morethan just a richuser experience: italso means usersare constantlygenerating astream of dataIt is understandable that brands want to leveragethe power of social media to connect with theirconsumers. But what is the best way to do this? As itturns out, social media does truly need to be EARNEDand the strongest brands must put effort into makingsocial media work for them.Marrying social metrics to brand metrics
  • With the Facebook identity so thoroughly enmeshed in thedevelopment of new applications and platforms, it facilitatesaggregation of this data while Twitter’s functionality as aninformation-sharing platform means it also captures a wide varietyof data, as new platforms push select data through to Twitter. Thisunified social graph will give rise to new brand value generationacross many categories and many platforms. Mining those platformsfor explicit, implicit, and analytic consumer data will become a coremeasurement approach for brands.How can you measure the impact of social media throughsocial media?If the bounds of social media and the data it generates are seeminglylimitless, it becomes necessary for us as researchers to be able toidentify key points of significance in that data that can serve assurrogates for the larger set. From there, we can extrapolate morebroadly to measure the impact of that media on a brand.To understand how we can frame social research alongsideattitudinal research, it’s helpful to think of the traditional purchasefunnel. We propose, through early validation work, that just asthere’s a purchase funnel that helps explain consumer attitudesand decisions, there also exists what we call a “Passion Funnel” – aparallel social research construct that helps marketers understandbrand social performance in the sameframework as they understand overallmarketing performance.This research construct makes it possibleto measure brand activity more broadlyin social media. Through our VerveIndexwork using Twitter data we’ve seenthat using integrated platform data canyield powerful results, including insightinto both campaign effectiveness andbrand performance. So many other datasources flow into Twitter – from originalTweets to blogs to location data to photo and video sharing – thatby decomposing the stream, we’re able to track brands across amultitude of platforms from one very rich data source. As broad associal media may be, we can isolate, identify, and amplify whichelements of which platforms serve as signals for marketing success.When we identify the significance of each of these elements andassign appropriate weights, we’re able to use this data as a proxyfor understanding brand performance not only in the wider socialuniverse but also more holistically across all marketing activity. Asadoption of social media becomes more widespread in the generalpopulation, marketers are also simultaneously increasing its rolein their broader media mix. Social media functions as a barometerof consumer opinion; as consumers react to the mix of messagesin the marketplace, whether they’re originating from TV, print,outdoor, online, or social media itself, we’re able to capture thatbroader reaction by listening to the social voice. The ebb and flow ofmarketing messages is reflected (and when done well, amplified) insocial media, making it a robust data source for catching the pulseof brand performance.Yet to make sense of the breadth and depth of the big data socialmedia affords us, it is ultimately critical to tie brand performanceand marketing activity in social media back to established,standardized metrics that can function across the broader reach ofmedia, whether that’s paid, earned or owned. Decades of researchhave taught us much about the consumer path to purchase, andthose findings and research constructs still serve as the backbone ofour industry and our understanding of it.Social media measurement is not a new research paradigm; itis another data source to help us understand and support theparadigm we use consistently across all other market research. Justas social media should be a component of a brand’s overall strategyand media mix, so should social media measurement be held to thesame standardization as the rest of a brand’s measurement mix. Asnew platforms launch, grow and evolve, so will their data generation;for each of these data sets, we must always seek to identify acommon understanding of them through a stable analytical lens.The ebb and flow ofmarketing messagesis reflected (andwhen done well,amplified) in socialmedia, makingit a robust datasource for catchingto pulse of brandperformancePURCHASE FUNNEL PASSION FUNNELAwareness Buzz Total brand mentions and interactionsA measure of conversation intensityThe ratio of positive to negative buzzWords most often used in association with brandMessage BrandVoxFavorability SentimentIntent PassionFirst published in Kantar’s Social in Context report, Part 3, February 2012Turning Big Data into Brand Data
  • The futureof #socialfor brandsView conversation@duncan_southgaterand are increasingly awarethat fan pages can attract largeaudiences and build brands.More and more people aresigning up to fan pages andsocial media feeds around theworld. A typical Facebook fanpage has almost tripled in size inthe past year (the average increase across all Facebookfan pages was 193% according to Socialbakers, a socialmedia measurement company).The importance of measurementSocial media is now important to many brands, butmeasurement practices have not yet caught up. Stillnot many social media marketers fully understandthe return on their investment. As well as behaviouralmeasurement to understand audience volumes andengagement, brands should look to add a layer ofattitudinal understanding; firstly to understandwhether fan pages are achieving brand objectives, andsecondly to gain insights into how the pages can beimproved. Larger scale social platforms and campaignsshould also be included in multi-media measurementstudies. One recent Millward Brown CrossMedia studyfor a European FMCG brand showed that Facebookand TV synergy was very powerful, especially for theyounger core target. Only when social is considered inthis wider context will brands fully understand socialmedia’s role in the media mix.SummaryThere are many exciting future possibilities in socialfor brands which understand their audience, identifywhat works among them socially, and deliver againstthat consistently with ongoing creativity.For more of Millward Brown’s social media learning,see the Knowledge Point “How should your brandcapitalise on social media?”BFivesuggestionsforkeepingfanpagesfreshFan pages: impactful, and growing in scale+193%By Duncan SouthgateGlobal Brand Director, Digital, Millward BrownIntegrate and enhance offline conten - Beyond the digital space,brands also need to integrate their social activity strongly withother media and promotional activity. We have already seen someambitious examples such as Smirnoff’s “Nightlife Exchange Project”,where a major TV and online campaign drove millions of global Smirnoff fans tointeract via Facebook. Even in less extreme situations, social media needs to beaware of and reflect messaging from other channels to give those messages a chanceto be amplified/reiterated. Just posting the latest TV or print ad is an opportunitylost. Brands need to identify a social element in the ads and invite comment anddiscussion. Social can add a new layer, provide an additional back story about themaking of, or provide an opportunity to flesh out a key communication point withfurther information.#5Aim for seamless social - Brands need to deliver a coherent storyacross multiple digital platforms.This already means juggling contenton Facebook, Twitter and a brand website, and perhaps on YouTubetoo. In the future, brands may also want to extend their presence intoFoursquare, Google+ and other networks. Brands need to make key decisions aboutwhether to devise unique content for Facebook and other social sites, how muchcontent to leave on their own website, how to manage Facebook fans alongsidewebsite and email marketing databases, and whether Twitter has a unique role oris simply a traffic driver for the Facebook page or the brand website. Some brandshave chosen to integrate their Twitter feed within their Facebook page which canencourage some cross-fertilization. Many permutations are acceptable, but a clearstrategy is essential. Forums on websites have arguably become much less relevant,since these conversations are more natural in a Facebook or Twitter environment.While this means giving up some control, it increases the chances of viral spread.Viral video campaigns and social media are natural bedfellows. Old Spice and DosEquis have shown how social media can enhance and build on already successfulviral video campaigns.#4Keeponreachingout-Brandsneedtokeepreachingbeyondcorefansto the friends of those fans. Not only does this increase the potentialtarget audience, but this new blood will also bring new enthusiasmto the page. Facebook makes this possible via ad units which canbe targeted at friends of fans. This viral spread can also potentially be achieved bycrafting posts or creating content elements that lend themselves to being shared.The Facebook and Twitter “share” and “retweet” mechanisms are simple, but fans/followers are only likely to do this occasionally, when the post/offer is exceptional, orwhen it will reflect well on them if they break this news to their friends.#3Have fun with tech - Apps aren’t essential to a successful fan page,buttheycancertainlyhelp.SocialmediaenablerssuchasBuddyMediaoffer many precanned apps which can be easily tailored. As other newfeatures and technologies become available, brands should evaluatetheirappropriateness.Forsomebrands,thismightmeanaviralappwhichencouragesphoto sharing. For others this might mean a device which takes advantage of geo-location capabilities to map fan base activities. Many social media users enjoy thelatest new thing, so aim to demonstrate that your brand is at the cutting edge. Justone word of caution: don’t make your app so complex that no one can figure outhow to use it! Think innovative AND intuitive.#2Encourage creativity - Think of page managers as copy writers, notemail marketers. Whilst maintaining a consistent fan page “voice” isimportant, encourage page owners to experiment frequently withdifferent post approaches. What works this month may not workso well in the future, so keep probing new areas to see what content sparks mostengagement. Newsfeed posts are the most viewed fan page content, so it is essentialthey maintaininterest.Individualpostssomehowneedtoaddup to a cohesive wholeand tell a story over time. Regular features such as a weekly or monthly competitioncan help mark the passing of time.#1Separate learning from BrandZ has made it clear thatfan pages are not right for all types of brands, butcan be really successful when run well. The relevanceof fan pages varies by country, category and brandtype. Brands are obviously more likely to build largefan bases in countries where there are large numbersof social media users. Beyond that we have seen thatsocial media users in some countries such as Korea,Brazil and China are particularly likely to followbrands in social media. Some categories such asIT software/ hardware, diapers, telecomms, mobilephones and cars seem to attract more fans. Andbrands which are particularly creative and desirableare also more likely to build large fan bases.Once a fan base has been established, there can bemassive variation in how successful those pages are atdeepening brand loyalty among fans. “Value of a fan”research conducted by Millward Brown and DynamicLogic in partnership with the World Federation ofAdvertisers has shown that innovation and variety arekey to fan page success. Brands will therefore needto keep content fresh and provide ongoing reasons toengage if brand effectiveness is not to fall over time. Sohow can they manage this?First published in the 2012 edition ofWPP’s BrandZTop 100 report
  • ver a century ago, the renowned merchandisingand advertising mastermind, John Wanamaker,uttered that iconic phrase. Decades before radioand television, Mr. Wanamaker opined aboutthe fundamental weakness with advertising –the difficulty of reaching potential consumersthrough traditional advertising. He didn’t have the tools or theinformation to make informed decisions about what advertisingworks best.When you think about how electricity would literally shock hisworld, consider how digital is affecting yours; how consumers aredefining their media through new digital devices on a personallevel. Digital technology (set top boxes, smart phones, tablets, PCs)links content to the consumer faster than ever before. Technology isredefining the new reality in television, and digital technologies areempowering consumers with the greatest choice of content, in thehighest quality, delivered when and where it is most convenient -welcome to the consumer age of television.The challenge of evaluating advertising effectiveness today hasintensified as consumers are more actively multi-tasking on digitaldevices, exponentially increasing the likelihood of potential lostaudiences and ad avoidance. But 100 years later, we have anadvantage over Mr. Wanamaker – these digital devices can “talk”.They can collect usage data and send it back. To give some context,we now collect tuning on over 2.3 million commercials – so we cansee in last year’s Super Bowl if anyone actually stayed with thoseexpensive ads.As more digital media advancements enable efficient targetingcapabilities, advertisers can send more relevant messages to theright consumer. Since digital devices communicate with a highfidelity of return path data (RPD), we have an unprecedentedopportunity to “mine & combine” this usage data so marketers canunderstand the new digital media landscape and improve theiradvertising effectiveness.Mr. Wanamaker was making the case to demand greateraccountability for advertising. Kantar Media and Millward Brownhave combined two key databases to understand the acceptance ofan ad and the subsequent audience behavior when the ad appearsto help minimize ad avoidance or audience tuneaway. This enabledus to provide an additional measurement system with enhancedaccountability and insight for advertisers.OBy Jeff Boehme, Chief Research Officer, Kantar Media AudiencesMitzi Lorentzen, Vice President, Client Solutions, Millward Brown“Half the MONEY I SPENDON ADVERTISING IS WASTED;THE TROUBLE IS I DON’T KNOWWHICH HALF”-JohnWanamakerTurnOn,TuneIn,WatchOut:HowAdvertisersCanMinimizeAdAvoidance
  • Commercial Audiences Are Not Traditionally MeasuredDespite the digital transition of media, traditional TV measurementin the U.S. has not progressed to keep pace. Ironically, the TV ratingssystem doesn’t report the key metric of audience to the commercials.Program ratings don’t tell you how people watch commercials.Kantar Media’s state-of-the-art audience data, however, providessecond-by-second return path data (RPD), which is digital TV usagederived from set top boxes. These second-by-second tuning levelsenable us to passively collect and measure audiences to all availablechannels and programs, as well as commercials so we know whenand where audiences stay with or leave the ad. More specifically,tuneaway provides a measure of lost audiences by analyzing thetuning present at the start of a commercial and calculates theproportion tuning away from that commercial.Despite digital video recorder(DVR) penetration over 40%, themajority of TV tuning is still livewith an average of 3% commercialtuneaway. However, this rangesand we have seen campaigns whereaudience tuneaway can exceed20%. For time-shifted content,commercial tuneaway can bemuch higher, sometimes exceeding30%. As a practical example ofthis impact, sponsors of the Super Bowl would lose approximately$80,000 of their investment dollars if a 30-second ad experiencesa 3% audience tuneaway. Therefore, understanding this behavior iscritical to measuring the real value of the advertising investment.Our two companies, Kantar Media and Millward Brown, realizedthat we could further improve our clients’ advertising return oninvestment by helping them minimize audience tuneaway. Byaligning Millward Brown’s robust database of Link™ copy testingand Kantar Media’s DIRECTView actual audience behavior, we cannow isolate the various factors which drive tuneaway from ads.Millward Brown’s Link™ identifies the potential effectiveness of anad and is validated to sales. The Link™ database contains thousandsof ads across a range of categories and brands. From a Kantar Mediaperspective, tuning behavior measures the “environment” of how anad is received via DIRECTView. This is a managed RPD panel of over100,000 digital households.To prove our concept would work in the real world, we allied withthe Advertising Research Foundation (ARF) to define a study wherewe focused on a given month of Kantar Media’s second-by-second TVtuning for 184 ads that had been pre-tested with Millward Brown’sLink™ dataset across a range of categories. Our goal was to addresstwo questions:• What creative metrics from a pre-test can predict audiencetuneaway?• How media placement and measurable influences can impactthe results?Aligning the results from these databases enables us to provideguidance on how to optimize both the creative and media placementto minimize commercial tuneaway.Understanding The CreativeUnderstanding which creative elements relate to tuneaway beforea commercial runs will provide an early warning signal to helpadvertisers minimize potential audience loss and provide insightthat is actionable before the commercial campaign begins.It is important to note that tuneaway provides an understanding ofad avoidance, but does not indicate whether an ad will necessarilybe successful. Millward Brown’s research on what constitutes strongcreative illustrates the importance of engaging viewers in a brandedfashion (branded engagement) so an ad gets noticed and recalled inassociation with the brand. If an ad engages viewers, the advertiserhas a greater opportunity to create associations about the brandthat could generate a response (persuasion). Combined, these twomeasures help us understand the creative potential of a commercialin market.From our analysis, we know that some ads are more likely to engagewith consumers in a negative way and be fast forwarded or “tunedaway” from, and these contain certain creative characteristics.These creative aspects can be grouped together into three cleardimensions.The element that is most important in terms of tuneaway from acreative standpoint is personal relevance - if consumers have nointerest in the category or brand, they are more likely to tune away.Secondly, viewers need to have a negative emotional reaction to acommercial in order to actively change the channel and tune away.They find the commercial “unpleasant”, dislike it, or feel inadequateor annoyed when watching it. The key finding being, consumers haveto engage with the commercial in the first place, in order to takeaction against it. Finally, if the message contained in the ad lacksrelevance or credibility for consumers then they are also morelikely to tune away.These findings corroborate with what we know about how brainsprocess information1. The brain prioritizes information of relevanceto current or future goals and emotion is a big cue to the brain ofsomething that is relevant and important.Therefore, an advertising idea has to resonate with consumers andtap into issues of importance to them. The challenge is to present thebrand in a way that is relevant to the consumer’s current mindset orbroader values and goals to help minimize potential tuneaway.1Cognitive Neuroscience, Marketing and Research: Separating Fact from Fiction, Graham Page and JaneRaymond, ESOMAR Congress 2006For time-shifted content,commercial turnawaycan be much higher.Therefore, understandingthis behavior is criticalto measuring the realvalue of the advertisinginvestmentTurn On, Tune In, Watch Out
  • Understanding Media PlacementBut how important is the media in terms of the whether viewerswatch or “tune into” watching the commercial? As we have learned,it is critical. The effectiveness of an ad being ‘tuned into’ dependslargely on where and how that commercial is received, or its media“environment”. Media placement can be measured on a rangeof factors, or media influences, relating to the buying strategyemployed. For the purpose of our study, we used our second bysecond audience data to identify the most important reasons whypeople tune away from commercials. These include: program,network/channel, daypart, commercial length, the pod within theprogram, position in pod and product category.We were then able to see some very interesting trends. For example,ads which are shown first in a commercial pod (the grouping ofcommercials in a program) tend to have higher levels of tuneaway.The specific program also affects the ad’s performance as does thespecific product category being advertised. For example, categoriessuch as movies/entertainment, experience lower levels whereasautomotive experiences higher levels of channel switching. Thisis logical, as the vast majority of Americans will not buy a car inthe next year, so that brand may not be as relevant at the time ofviewing.We have used these data to develop a new performance metric – theAudience Tuneaway Index (ATI). All of the media influences listedabove impact on the performance of campaigns, and so by usingbroad commercial benchmarks we can control for each influenceand calculate how campaigns would perform in a typical TVenvironment.The Real Value – Combining Creative and Media PlacementMeasurementThe real power lies in combining media and creative aspects tounderstand how they interact. We built a structural equation modelacross the combined datasets to isolate the effects of creative andmedia placement on audience behavior tuneaway. While we knowcreative plays a critical role, the model illustrated an amazingobservation- media plays an even stronger role, accounting for 75%of tuneaway.From a creative standpoint viewersgenerally have to really dislikean ad or have it not be relevantto actively change the channel.From a media standpoint, there aremultiple factors which will impacteven the most powerful creative.Many consumers will intuitivelychange the channel as soon as thecommercial break starts, and certain programming is better atretaining audiences. For example news or sports, may impact theway in which the commercials within it are consumed, comparedto a genre such as drama which usually requires continuousengagement to follow a storyline through a commercial pod.However, the creative remains critical. Audience tuneaway does notinform us if the commercial was remembered in conjunction withthe brand, or whether it drove sales. Audience tuneaway analyses,complemented with other commercial performance measuresprovide an additional diagnostic to understand the ad’s potential toretain or lose viewers.Activating the Model to Help AdvertisersWhile our study enabled us to understand the overall trends andcauses of audience tuneaway, we are also able to analyze theperformance of individual campaigns and pinpoint areas of strengthand weakness. We found examples of campaigns which scored wellcreatively but performed poorly in terms of their tuneaway, andothers which were weaker creatively but managed to minimize adavoidance. Examples such as these enable us to understand therelationship between creative and media and to identify specificelements that contributed to this performance and areas forimprovement.In one specific case, we found the advertiser had an opportunityto improve both the creative and media strategies to reduce adavoidance. From a creative standpoint, they needed to convey amore credible message and make changes to reduce the negativeemotional reaction. Their media strategy could be enhanced bybetter rotating spots in different pod positions as well as modifyingtheir channel and pod composition.Overall ConclusionsConsumers will continue to evolve with digital media, activelyselecting relevant video content and consuming it on theirown terms. To understand audiences in this digital evolution,programmers and advertisers need additional measurementpractices to provide enhanced accountability and insight.Commercial tuneaway does represent a significant loss in bothaudience and media investment, but there are metrics availablethat can help analyze campaigns from both a creative and a mediaplacement standpoint, to manage and reduce ad avoidance.Can’t you just see Mr. Wanamaker smiling?First published in the July 2011 edition of AdMap.Reproduced from AdMap with permission.© CopyrightWarc. www.war.com/admapTurn On, Tune In, Watch OutMany consumers willintuitively change thechannel as soon asthe commercial breakstarts, and certainprogramming is better atretaining audiences
  • SocialMediaBestPracticesBy Chris Maier, Director of Digital and Media Solutionsfor Greater China, Millward Brown& Nicki Cunliffe, Associate Director, Millward Brown OptimorThe study of China’s Top Social Media Brands reveals several bestpractices that can inform the marketing of brands determined tomake an impact in China. These best practices include:1. Branding and MessagingMake social media messaging consistent with the brand’s idealAn effectively planned and executed social media strategy can havetremendous impact on raising awareness and conveying a message,when it is in line with the brand’s core idea and values. In 2010,Haier aligned with the World Wildlife Fund’s Earth Hour initiativeand urged employees and customers to participate.Haier launched a promotional website where visitors learned aboutthe importance of power conservation. Haier spread awarenessthrough integrated sharing links to social media websites, callingfor the involvement of consumers around the world to care for theearth. The company also engaged consumers with activities onpopular online forums and blogging platforms.Haier’s Earth Hour website received over 1.5 million visitors afteronly 10 days online, indicating the success of social media as aplatform for Haier to spread its message of promoting a smarterlife for a better planet. Importantly, the Earth Hour initiative isvery much in line with Haier’s renewed brand positioning as adeveloper of sustainable white goods solutions and producer ofenvironmentally responsible and energy efficient appliances.2. Customer ServiceLeverage the microblog platform to engage with consumers in real timeThe increase in popularity of the microblog has spurred most brandsto launch an official microblog page. Brands most sophisticated insocial media use these platforms to allow customers to voice theirproblems as soon as they arise. Then the brand responds with equalspeed.In January 2010, around 600 cabin crew associates from ChinaEastern Airlines ‘Lingyan’ group joined the microblog Sina Weibo.They wanted to better communicate with their customers, buildcustomer loyalty and deal with any potential issues or crises thatmight arise. Just a month later, in February 2010, the famousChinese actor Xu Zhen tweeted to his Sina Weibo that he misplacedhis iPad on a flight and mobilized his followers to help him find it.In just over an hour, a cabin crew member from Xu’s flight identifiedherself and informed him that she had picked up his iPad andarranged for it to be returned to him. China Eastern Airlines’participation in social media has enabled the company to engagewith customers on a personal level and provide responsive service.3. Consumer InsightListen to consumers and co-create desired experiencesSocial media provides an ideal opportunity for brands to listen moreand develop a better understanding of what consumers want. InJune 2010, Air China launched a social media campaign. “My flight,I decide” via Sina Weibo, and recruited netizens to create their idealflight, offering complete customization of route, in-flight service andfood and beverage.Air China used web portals and microblogs to spread the word,attracting over 5,000 netizens to participate and adding the term“weihang ban” (custom-flight) to the Chinese online lexicon. Mostimportantly, Air China was able to gather important intelligenceto enable the company to design the ideal flying experience from acustomer perspective.4. Social, Local and Mobile (SOLOMO)Integrate social media with mobile marketing and location-based servicesWith the ever-increasing number of smart phone users gettinghooked on social mobile apps like location based services (LBS),microblogs, social network sites and video sharing sites, mobile hasbecome an increasingly important social media marketing platform.China Mobile partnered with Tudou, one of China’s leading videosharing websites specifically associated with netizen generatedcontent, to create a campaign called “CMCC WIFI Hotspot Check-in.”The campaign encouraged China Mobile users to discoverand turn on WIFI hotspots via LBS check-in. The checkin activityautomatically synced to a campaign site Tudou set up with a map ofShanghai detailing every time a netizen activated a WIFI hotspot.To encourage the on-going upload of user generated content,netizens were also able to upload photos to the campaign siteusing location based SNS, Bedo. The campaign attracted more than90,000 check-ins from mobile netizens. The success of China Mobileand Tudou’s joint mobile marketing initiative demonstrates theinnovative integration of social, local, and mobile (SOLOMO), whichhas proven to be very well received by young netizens in big cities.5. Viral VideoProduce online video to give people something to talk aboutBy the middle of 2011, the number of online video users reached301 million in China, according to a July 2011 survey by the ChinaInternet Network Information Center (CNNIC). Staterun websites,like CNTV, and private video sites, like Youku, Ku6 and Tudou, havebecome a big part of netizens’ lives. As a result, many brands areusing viral videos to create buzz and promote sales.In 2011, Lenovo launched its “Boot or Bust” viral video, a productdemo of the new Lenovo ThinkPad laptop equipped with a featurecalled RapidBoot. The demonstration was designed to dramatizehow RapidBoot gives Lenovo computers the ability to boot up in just10 seconds. In the video, a ThinkPad is tossed from a plane at 12,500feet and powered on in midair by a skydiver. The falling computerthen boots up quickly enough to trigger a parachute and sail to asafe landing.The video created a lot of buzz, and the integration with socialwebsites made the viral spread of the video content faster and widereaching. There has been a lot of discussion about what makessomething go “viral.” Millward Brown and CIC findings indicate thatcreative, humorous, touching and exaggeratedsubjects are more likely to be shared.6. Hot BuzzKnow and participate in hot topics to drive engagementBrands should stay abreast of hot topics because the most popularstories and breaking news generate the most online buzz. Theappearance of Chinese dairy company Yili in the Transformers 3movie took many people by surprise, with a character in the movieasking, “May I finish my Shuhua milk?”Yili capitalized on the factthat Transformers 3 was the most buzzed about hot topic online andsupplemented the product placement with an extensive social mediacampaign.The official microblog fan page was launched before the movieopened, and a series of marketing activities were executed. Theseactivities included encouraging netizens to enter competitions towin tickets to the premiere and Yili branded movie souvenirs. Theyalso involved completing personal movie reviews after the moviewas released.The discussion about Yili Shuhua milk associated with Transformers3 created a lot of buzz online, generating over 170,000 tweetsduring July 2011, on Sina Weibo alone. Leveraging the enthusiasmof consumers,Yili enhanced the effect of the product placementand attracted abundant re-tweets by bonding the brand with veryrelevant and topical discussion content.First published in the 2012 edition ofWPP’s BrandZTop 50 report
  • recent report concluded that there is a very stronglink between creativity and effectiveness: ‘The LinkBetween Creativity and Effectiveness’ (IPA, 2011, PeterField). Field’s analysis sheds an interesting light onan old debate about creativity and sales effectiveness.We’ve long felt there was a connection: when we lookat the best ads we have ever tested, it is clear they all have the powerto involve and be enjoyed, and it is clear even subjectively that theyall harness creativity, albeit in different ways, to great effect.To explore this issue further, we’ve recently conducted our ownanalysis. We undertook a painstaking trawl through the winnersof IPA Effectiveness Awards from 1996 to 2010, Effies from 2007 to2010, and Cannes Lions from 2002 to 2011 to identify campaigns forwhich we had conducted Link, our global pretest. The IPA and Effieawards are given for effectiveness, while Cannes Lions are given forcreativity.In total, we identified 251 ads covering 92 brands. For brands forwhich we had researched more than one ad, we used the averagescores across all the ads. We indexed the Link results to enablelegitimate comparisons of ads from different countries (because theCannes Lions cover ads from around the world, and average scoresvary across countries). An index of 105 or more puts the ads into thetop third tested; an index of 114 or more puts the ads into the top10%.Figure 1 shows the results on a selection of key Link measuresfor IPA Effectiveness winners. Overall, these results include 153ads for 46 brands; the “base” column shows the number of brandsrepresented. (Because Link has evolved over the years, we don’t haveall the measures for all the ads.)Compared to our overall average, the television commercials for thewinning brands tend to be more involving and enjoyable (an index of105 puts the ads into the top third we’ve tested on these measures),and different to other advertising. They also have slightly betterbranding. They are less likely to be seen as conveying new, relevant,or unique information designed to make people feel differently aboutthe brand. The persuasion scores of these award-winning campaignsare on a par with norm.Some may be surprised that advertising can work withoutpersuading people. We’ll explore this further later in the paper.By Dominic Twose, Global Head of Knowledge Management at Millward Brownand Polly Wyn Jones, Senior Database Analysis Executive, Millward BrownAFigure 1: IPA Effectiveness WinnersINDICES MEDIAN NUMBER OFBRANDSDifferent to other ads 106 10Enjoyment 105 46Involvement 105 36Believable 102 19Branding 102 43Appealing 99 36CPG Persuasion Mean Score Index 99 25Understanding 98 46New Information 97 35Relevance 95 36Think Differently 95 15Uniqueness 95 24Brand Different 93 19CreativeEffectivenessA study of IPA Effectiveness, Effie and CannesLions Awards winners reveals that ads don’tneed to persuade to be effective but they dousually engage emotionally.
  • Cannes LionSTurning to the Cannes Lions (covering 43 ads for 30 brands; someads were tested in multiple countries), they too perform well aboveaverage on enjoyment and involvement (Figure 3), but they arealso far more likely to be different to other ads (an index of 115puts them in the top 10% of ads we test on this measure). On theother hand, branding scores are on a par with the norm while thepersuasion scores are below the norm.So it seems that both creative and effective ads benefit fromenjoyment and involvement.The finding that shows that persuasion is not necessary for effectiveadvertising may seem surprising; both Millward Brown and some ofour competitors have published evidence that such advertising canproduce sales effects (‘An Analysis of How Effectively Advertisingresearch Can Predict sales’, Twose and Smith, 2007). However, this isunderstandable in light of the evidence that a persuasive ad tends toaffect sales in the short term, while effectiveness awards tend to begiven for long-term brand-building campaigns.The Millward Brown measure of persuasion, which asks respondentswhether the ad makes them more likely to buy the brand, tends toclosely replicate the results of pre-post persuasion shift approaches(‘Persuasion shift Testing: Putting the genie Back in the Bottle’ Farr,1993). We have also observed that ads which performed well onpersuasion also tended to convey relevant, credible, differentiatingnews (‘What Makes an Ad Persuasive?’).A new, relevant, and credible claim willalways have a dramatic sales effect. Butsuch advertising will wear out quickly:persuasion is a “one-off” event. We eitherget the consumer to make a mental noteto try the brand again, or we do not.An ad that did not get this response atthe first three showings is unlikely to atthe fourth. So, while persuasion is oneroute to produce a substantial sales effect in the short term, thiseffect is unlikely to register strongly in the long term. In fairness, weshould also acknowledge the possibility that advertising agenciesare more likely to submit highly creative campaigns to the IPAEffectiveness Awards, and less likely to submit campaigns based onestablishing a new, relevant factual claim.It does seem that persuasion is not necessary for long-term brandbuilding. This highlights the need to be clear in setting advertisingobjectives either in terms of short-term sales effects or longer-termbrand building.In 2005, after an extensive review of the literature, we compiled alist of 16 emotions to represent the range of emotions advertisingcould generate. (The Emotional Drivers of Advertising success: Page,2005).We’ve now had considerable experience of these measures, andwe have found them extremely helpful in understanding adperformance.While the base of brands covered is admittedly low, the averageresponses for the IPA Effectiveness Awards winners seem to mirrorthe UK norms (Figure 4).A new, relevantand credibleclaim will alwayshave a dramaticsales effectFigure 2: Effie WinnersFigure 3: Cannes Lions WinnersINDICES MEDIAN NUMBER OFBRANDSBranding 106 16Uniqueness 105 15Involvement 104 15Brand Different 102 15Different to Other Ads 102 13Enjoyment 102 16Persuasion 101 12Believeable 100 14New Information 100 15Relevance 99 15Appealing 98 16Understanding 97 16INDICES MEDIAN NUMBER OFBRANDSDifferent To Other Ads 115 17Involvement 113 22Enjoyment 106 36Appealing 101 33Brand Different 102 26Branding 99 36Believable 94 26Persuasion 97 27Think Differently 97 15Relevance 95 25Uniqueness 96 26Understanding 92 34New Information 91 25Figure 4: IPA Effectiveness WinnersBase: 13 Brands, 2086 AdsINDICES IPA UK AVGAffectionate 20 22Annoyed 12 13Attracted 32 36Confident 27 32Contented 41 40Dissapointment 12 13Excited 20 20Guilty 2 2Hatred 3 3Inadequate 6 6Inspired 33 32Proud 15 15Repelled 7 7Sad 5 4Surprised 33 28Unimpressed 29 29Creative EffectivenessEffiesFigure 2 shows the results for the Effies. These figures must beviewed with caution because of the lower base sizes – (55 ads,16 brands) – but they suggest that, like the IPA winners, the Effiewinners are involving, enjoyable and well branded. However, theEffie winners differ in that these ads were considered to deliverunique impressions that could only be for the advertised brand, andboth the brands and ads were seen as different from others. Theyperform on a par with the norms on relevance, news and credibility.Again, persuasion is on a par with norms.
  • However, many individual ads didachieve high scores on specificemotions; these results are maskedin the aggregate data. One FMCGbrand, with an advertisementfeaturing mums’ relationships withtheir children, scored 60 on “affectionate” versus an average of 26;one personal care brand, with ads focusing on sexual appeal, scored76 on “attracted” versus an average of 45; one beer brand, with anad showing what excited different groups of people, scored 55 on“excited” versus an average of 36; and a beer brand featuring acharismatic, aspirational character, scored 41 on “proud” versus anaverage of 24.Our database shows that, among other things, emotionally powerfulads are more memorable (“Should my advertising stimulate anemotional response?”, Millward Brown).The variety of different emotional responses obtained by award-winning advertising highlights that there is no one emotion totrigger for successful advertising. Rather, the successful ad triggersthe emotion that is relevant for that brand and positioning.Looking at the Effie winners shows the same pattern (Figure 5); thestory lies with the individual brands. One cereal brand scored 60on “affectionate” versus an average of 25. A food brand scored 73 on“contented” versus an average of 48, and a beverage brand scored 52versus an average of 35 on “excited”.The Cannes versus global data is problematic, because we areadding together results across countries, and again the base sizesare low. However, overall, the Cannes winners have broadly similaremotions to our global norms. But again the key to understandingemotional response lies in the individual brand stories.One FMCG brand, with an advertisement featuring mums’relationships with their children, scored 60 on ‘affectionate’ versusan average of 26, one personal care brand, with ads focusing onsexual appeal, scored 76 on ‘attracted’ versus an average of 45, onebeer brand, with an ad showing what excited different groups ofpeople, scored 55 on ‘excited’ versus an average of 36, and a beerbrand featuring a charismatic, aspirational character, scored 41 on‘proud’ versus an average of 24.What This Means For AdvertisersThis analysis serves as a celebration of creativity. Advertising whichis enjoyed, found involving, and stimulates the emotions in a waythat other advertising doesn’t, should be encouraged and rewarded.But that doesn’t mean advertisers should pursue creativity at theexpense of all else.It has long been known that advertising needs to be underpinnedby an appropriate strategy. This analysis adds another factor:branding. It is all very well for an ad to leave vibrant memories, butdo these memories link to your branduniquely?Branding has nothing to do withrepeating the brand name andshowing packs; it has everything todo with making the brand the centreof, and the reason for, the creativeidea. The Marlboro Cowboy, the Hovisdelivery boy freewheeling down a hill to the strains of Dvorak’s NewWorld Symphony, the Andrex Puppy and the Clio-driving Nicole andPapa, are all excellent examples of well-branded advertising.There are many ways to brand an ad but, ultimately, it relieson creativity to integrate the brand, or an established brandingcue, into the ad in an engaging way. This analysis suggests thatadvertising should also stimulate emotions; but there is no singleemotion which works better than others.SummaryThe analysis presented here helps to explain the overlap we observebetween creative advertising and effective advertising.While creativity cannot be defined or prescribed, its effects can bemeasured, and creative ads tend to be enjoyable and involving, anddifferent to other advertising. They tend to stimulate an emotionalresponse. Effective ads also tend to generate these responses – andthey are also likely to be well branded.The analysis also highlights that one differentiator between creativeads and effective ads is that effective ads are more likely to have thebrand as an integral part of the advertising.There is no single route to effective advertising, and this isparticularly in evidence in looking at emotional response, where noone emotional response seems to be related to effective advertising.Despite having the biggest pretesting database in the world,Millward Brown acknowledges that the base sizes for this analysisare not as robust as we would wish. Still, we do believe that theanalysis adds a useful contribution to the debate.The Cannes Lions have a new Creative Effectiveness category tohighlight those campaigns that have had measurable businesseffects over time, and Walker’s Crisps, PepsiCo’s snack brand, wonthe Grand Prix at the inaugural Creative Effectiveness Lions. Thiswas an ad we researched and, while we cannot discuss the researchfindings in detail, we can say that it scored above average on“enjoyment”, “involvement” and “branding”.Over the next few years, as the Creative Effectiveness Lions casestudies continue to build, learning about the relationship betweencreativity and effectiveness will only continue to grow.Figure 5: Effie WinnersBase: 16 Brands, 7900 AdsINDICES Effie US AVGAffectionate 24 25Annoyed 13 12Attracted 40 43Confident 45 43Contented 46 48Disappointed 8 8Excited 37 35Guilty 1 2Hatred 2 3Inadequate 4 5Inspired 41 41Proud 31 27Repelled 7 6Sad 3 3Surprised 39 35Unimpressed 18 20Creative EffectivenessFirst published in the November 2011 editionof AdMap www.warc.com/admapMany individualads did achievehigh scores onspecific emotionsBranding hasnothing to do withrepeating thebrand name andshowing packs
  • t’s official. The US is barreling toward one of the mostsignificant demographic shifts in the country’s history.According to Census projections, by 2042 America will be a“majority-minority” nation, where so-called ethnic minoritypopulations will collectively outnumber the White majority.While this may seem a far-off reality, in some respects thefuture is now: Minorities already outnumber Whites in some of thelargest and most influential markets in the country. And nationwide,the youth consumer population reflects this reversal.So, what does this mean for marketers? While the implicationsare numerous, one thing is for sure – the traditional multiculturalmarketing paradigm, originally established within a very differentsocio-historic context, is losing relevance in the race for share ofhearts and wallets of this stereotype-defying, new mainstream.IBy Ola MoboladeManaging Director, Firefly Millward Brown& Author, Marketing to the New Majority@ola_FFMBIsYourBrand’sMarketingStrategy2042-Compliant?Blue-chip mega-brands like McDonald’s and Coca-Cola have madequite public declarations of fundamental shifts in their approachesto reaching the new consumer landscape. And with the recent stringof multicultural marketing missteps experienced by brands likeSummer’s Eve and Nivea, it’s also clear that the path to culturalcompetency is not necessarily an easy one.Unfortunately, the solution isn’t as simple as pumping upmulticultural marketing budgets (though arguably it may be a start).Brand marketers must revamp their strategic toolkits as it relatesto how they define their mainstream audience and the role of ethnicconsumers within it.In our newly released book, “Marketing to the New Majority:Strategies For a Diverse World,” my co-author, David Burgos, andI lay out an extensive blueprint for brands seeking to gracefullynavigate this new terrain.First published in the October 10, 2011edition of Forbes, www.forbes.comHerearesiximportantguidelinesformakingsureyourbrandis2042-compliantCulturally progressive brands go beyond paying lip service when it comes toimproving the brand’s engagement with the diverse New Majority. They gothe step further to tie it to performance reviews and bonuses. Quantifiableperformance indicators for ethnic market growth are established in advance,and favorable reviews and bonuses are awarded when these goals are met.Don’t call on Jose, Keisha or Jin for an ethnic-marketing role simply becausethey are Hispanic, Black or Asian. If they are given this responsibility, it shouldbe because of their track record of expertise in marketing to these segments.Assuming that non-White employees are interested in working on ethnicprojects may make some question whether their broader talents are trulyvalued. In addition, firsthand experience living as a minority is only part of theethnic expertise equation, and only assures they can bring their own personalperspectives to the table. Each ethnic consumer audience is diverse, and thebest ethnic marketers are well versed in the nuances of each segment.Establishing a multicultural marketing department can be an important stepin the transition toward fully integrating ethnic competency throughoutthe organization, but it isn’t the finish line. One of your interim goals shouldbe to create and leverage an internal team of ethnic experts that can be aneducational resource to sales and marketing. But, it should be viewed as a meansof achieving a greater end goal. There should also be a plan for taking off thetraining wheels, so that sales and marketing are eventually empowered to deliverculturally relevant strategies independent of the multicultural marketing group.To be optimally effective, your company’s vision for reaching the New Majoritymust come from the top. If there isn’t a C-level executive evangelizing the crucialimportance of ethnic consumers to business growth, it will be much more difficultto implement real organizational change.A culturally diverse workforce is essential for companies that want to relate andempathizewiththeirmulticulturalcustomerbaseinaneffectiveway. Ifacompany’semployee base is far less diverse than the audience it serves, it is operating at asignificant handicap. While expertise in the ethnic marketplace can come fromanyone, regardless of race, there is a certain degree of intuitive empathy andlife experience that ethnic employees can bring to the table. Also, close workingrelationships among coworkers of various ethnic backgrounds help the entireteam internalize ethnic insights. A chief diversity officer can be instrumental inrealizing this vision.For businesses that engage both generalist and ethnic agencies, the personmanaging the agency relationships must set the tone for true collaboration andan open flow of ideas.There is an atmosphere of insecurity and tension in today’sagencies about which types are best suited to lead marketing efforts for theNew Majority. The Client contact should make it clear that they value the uniquestrengths that each agency brings to the table, and be open to the best ideasregardless of which agency they come from. A fair and relatively transparentcompensation model for the various agencies will reinforce this. Healthycompetition can yield stellar work, but if ethnic agencies feel undermined, theymay unintentionally assert their role by creating work that overemphasizesethnic distinctions. Invite all your agencies to strategic and creative briefings,rather than meeting separately or leaving it to the general-market agency torelay your direction to the ethnic agency. In these all-agency meetings, stateyour preferred style of collaboration up front—or, in the case of general marketagencies that already have established partnerships with ethnic agencies, askthem to present their process for collaboration before you begin.
  • The first stage of the ValueDrivers model focuses on the definitionof a brand’s meaningfully different experience. The second stagefocuses on how a brand experience that is meaningfully differentcan best be amplified—that is, brought to life and made morecompelling to a wider audience. The work that goes into these twostages leads, in a number of different ways, to the generation ofvalue described by the third stage of the model.Themodelhelpsusaddresstwokeyissuesfacingbrandmarketingtoday:FIGURE 1: Drivers of Value GrowthHowBrandsDriveValueGrowthValueDriversModel:By Nigel Hollis, Chief Global Analystand Gordon Pincott, Chairman, Global SolutionsIntroductionWe have developed a framework to helpbusinesses understand how to grow thevalue of their brands which we havecalled ValueDrivers.The result of extensive analysis of ourbrand equity database andre-evaluation of our own and othermodels, ValueDrivers has now beenreviewed and used by many businessesaround the world. It has formed the basisfor workshops to help individual brandsrealize their potential and has providedthe springboard to a new brand equitymeasurement system. It has been appliedto real-life marketing problems helpingbusinesses to maximise the financialvalue of their brands.The ValueDrivers model proposes thatbrands maximize their potential forgrowth by delivering a brand experiencethat is meaningfully different fromothers, and then using all availablemechanisms to amplify that.DEFINEDefining A Meaningfully Different ExperiencePeople choose brands that they believe are meaningfully differentfrom others, provided that the difference is meaningful to them.Offering a brand experience that is meaningfully different canhelp a brand build value, either by enabling it to command a pricepremium, or to capture a higher proportion of sales.Whether a brand is perceived in this way will depend upon theinteraction of the four factors shown in the model. For a brand tobe perceived as meaningfully different, it must offer something itscompetitors do not, and that offer must resonate with customers.This is most likely to happen when a business is clear about thepurpose of the brand, and the brand delivers the differentiatedexperience it promised.Today’s markets are complex. Categories are crowded. New categories are being created tomeet the changing needs of consumers, and the retail environment is changing as well. Oneconsequence of this increase in complexity is that businesses sometimes focus so intensely oncommunication, distribution, and pricing that they neglect to ensure that their brand is clearlydefined and differentiated.Go-to-market options have exploded in recent years. Marketers can communicate with consumersin virtually any place at any time, through means that didn’t exist—and in some cases were noteven imaginable—until recent years. There are more ways than ever to make brands available topeople. With so many possibilities, marketers sometimes have difficulty thinking through all oftheir options for reaching customers. At one extreme, this can lead them to simply repeat thechoices they made in previous years, while at the other, it may cause them to put undue emphasison the latest new marketing techniques.
  • purposeA brand must have a purpose. It must be intended to make somedifference in people’s lives. And to justify existing in today’s complexand crowded categories, a brand needs a purpose that sets it apartfrom others. What does this brand offer that others do not?At minimum, a brand must have some basic functional purpose;it must provide something consumers want or need. A brand cansatisfy emotional needs along with practical ones when it triggersassociations related to things like love, caring, or security. A brand’spurpose can also be informed by the brand’s story or heritage.Some brands are able to elevate their purpose to the level of anideal that goes far beyond the functional delivery of the product toaddress higher-order needs such as fulfilment, identity, affiliation,and societal or environmental good. For example, Jack Daniels helpsto affirm its drinker’s individuality. Pampers is devoted to helpingensure babies are happy andhealthy. Method, the U.S. householdcleaning products company, isdedicated to inspiring a healthyrevolution in home cleaning.A brand’s purpose should be clearto everyone in the company. Whenan understanding of a brand’spurpose permeates an organization,it will be much more likely to be single minded in its focus and tospeak with one voice. A leader who is passionately concerned aboutthe brand can elevate its purpose, inspiring as well as commandingothers to follow.DeliveryDifferentiation is most potent when it is intrinsic, that is basedon relevant and tangible advantages and when it is powered bythe declared purpose of the brand. Intrinsic differentiation cancome through the look, feel, sound, smell, or taste of a product. Thedelivery of an outstanding brand experience depends on attention toall of the details: the consistency of the product, the functionality ofthe brand’s website, the clarity of its usage instructions.For service businesses, the human delivery is at the heart of thebrand experience. A company culture built around the brand’spurpose or ideal will help to ensure consistent service delivery.However, human factors contribute to the experience of othertypes of brands as well—for example, the brand representativesencountered at retail outlets, car dealerships, and throughcall-centers.Differentiation can also be extrinsic, not based on what the productis or does but upon how it feels. Brands have personalities createdby their product experience but conveyed through what they do andsay. Brands often have associated rituals and all have iconographythat makes the brand identifiable and conveys its character. Brandscan exploit the senses beyond those that are engaged directly by theproduct. Increasingly, social and environmental responsibility canall form the basis of extrinsic differentiation. Outstanding designcan add aesthetic power to the intrinsic functionality.ResonanceA clearly defined purpose and a company organized to deliveraround that purpose will do little to build brand value if the brand’soffer is not meaningful and relevant to consumers. The brand mustaddress a real need. It must offer something that consumers need orwant at a price they are willing to pay.However, the most powerful type of resonance occurs when strongemotional bonds connect consumers with brands. These emotionalconnections are formed when people feel that a company genuinelyrelates to them and offers them brands that are not just useful butalso emotionally rewarding. This is where the intrinsic and extrinsicelements of the delivery combine to make the brand powerfullyrelevant to people.Consumer resonance becomes more difficult to achieve as thedefinition of the target audience broadens. The art of marketingis to make the brand as relevant as possible to as many people aspossible without losing clarity about what the brand stands for.DIFFERENCEThe degree of differentiation required for a brand to grow andprosper will depend on the nature of the brand and category. The keyquestion to ask is whether your brand is different enough given itscompetitive context.While a brand can’t control its competitive context, it mustcontinually be responsive to it. Successful brands that want tocontinue to grow need to respond effectively to new competitiveoffers. When brands stagnate or decline, it is rarely because ofsomething they are doing. Rather, it is something they fail to do:They fail to respond to a changing landscape and so lose theiroriginal meaningful differentiation.Some brands areable to elevate theirpurpose to the levelof an ideal thatgoes far beyond thefunctional delivery ofthe productHow Brands Drive Value Growth
  • How Brands Drive Value GrowthAMPLIFYAmplifying a Meaningfully Different ExperienceThe more powerful the experience, the more effective all the meansof amplification will be. A brand’s meaningful difference is amplifiedthrough the following five characteristics: Findability, CredibilityVitality, Affordability and ExtendibilityFindabilityPhysical availability is an obvious prerequisite for brand success.Without adequate distribution, a new brand introduction will fail,and an established brand will fail to maximize its potential. Where itis available a brand needs to be visible and easily identifiable. Whereonline is part of the path to purchase the brand must also besearchable.Marketers should look for opportunities beyond traditionaldistribution channels to open up new sales potential for theirbrands. They need to think about all the times and places wherepeople might have a need for their product, and make sure the brandis found there.CREDIBILITYIdeally, for maximum credibility, all of a brand’s actions need tobe aligned with the differentiated experience it offers consumers.The brand should be refreshed and enhanced by innovation thatis based on that core difference. The launch of new product linesshould benefit from, and feed back into, the meaningful difference.Increased credibility can also be built through association withother organizations, brands or people who share an allied sense ofpurpose.VITALITYA successful brand must have vitality—it must seem active andalive. A brand’s communication must keep the brand salient andcurrent if the brand is to remain top-of-mind for consumers.Use of social media can help a brand seem contemporary andencourage people to talk about it, as long as the brand createsexperiences with inherent talkability. Communities, offline as wellas online, are powerful sources of human connection. The choice ofcommunication channels and the creative content should be basedon and driven by the brand’s meaningful difference. Vitality is alsoserved by maintaining a fresh look and feel to packaging, logo,and communication, though innovation in these areas needs to bebalanced by the need to maintain clarity and identity.AFFORDABILITYThe interaction of price and meaningful difference is a majorconsideration in growing value. One of the most important rolesmarketing can play is to frame price perceptions to best advantage.A brand needs to be priced appropriately for its target audience.When the price is a barrier for some people, a brand might be mademore affordable through different pack sizes or creative financingoptions (e.g., purchasing over time). In some cases, it may bepossible to offer different versions of the brand, still based on themeaningful difference, but at different price points.People will happily pay a premium for a brand if they believe it’sworth it. Before assuming that a brand’s price needs to come down,marketers should think about ways to frame people’s perceptionsof their brand’s value. Does it last longer? Is it more durable? Ifa brand experience is powerful enough, it might be possible toincrease the value of the brand by raising its price.EXTENDABILITYA major way of growing brand value is by extending a brand thathas been successful in one country into other countries. It may alsobe possible to extend a brand into new categories, using the powerof the brand name to open up new market opportunities. This canbe done by the brand owner themselves or by licensing the brand tothird parties.Brandscreatevalueoutofameaningfullydifferentexperienceinfourways:GROWValue Growth based on a Meaningfully Different ExperienceDeep understanding of all these interwoven drivers will allowbrands to build lasting value for consumers and for shareholders.This article is based on research conducted using MillwardBrown’s database and Brand Equity model, October 2011By extending the brand’s penetration to new customers inthe same product categoryThe most common way to grow the value of a brand is to extendits reach to new customers within the same product category.Credibility, affordability and findability are the most importantmeans by which brands can increase their penetration. But it isimportant to recognize that this strategy carries risks as well asrewards.One of the most valuable roles of marketing is sustainingthe existing brand franchise and pricing. Without continuedaffirmation of what the brand stands for, existing users maybecome disenchanted or lured away by other more salient and vitalbrands. If, in seeking to attract new users, a brand needs to amendits existing positioning then it risks losing the very people whocurrently sustain it. Many strong brands have ultimately sufferedby seeking to be all things to all people; in doing so they lose clarityand become commoditized.Rather than undermining an existing successful positioning, brandsshould instead seek to create additional value for existing users orextend the brand to new categories and countries.By allowing the brand to capture a majority of sales at amore modest price pointIn the absence of any other perceived differentiation, a lower-pricedbrand is likely to win out over a more expensive one. Sustaining aprice advantage over the competition has proved to be a winningstrategy for many brands. Lower pricing will result in lower marginsand therefore create a need to generate high volume; Wal-Martmakes high levels of absolute profit by balancing lower margin withenormous scale.However, the commitment to sustaining low prices over the longterm has consequences for every aspect of the way a companyworks, and some potential customers will inevitably be alienated bythis approach. For example, in the airline category, some people willnot accept the lack of assigned seating as a fair trade-off for a lowerfare. And when a low price is a brand’s only differentiating featurethat brand will always be vulnerable to competitors willing and ableto offer the same product at an even cheaper price.Premium brands can capture more sales by offering more affordableversions. This “brand down” strategy must be carefully managed toensure that the cheaper offering does not cannibalize the premiumone. The challenge is to ensure that customers recognize that theyare giving something up when they buy the cheaper variant.By enabling the brand to command a price premium versusthe competitionIf a brand can command a higher price, its value can be increasedwithout large increases in penetration. Raising prices will have adirect effect on the bottom line since no additional production costsare incurred. Enhancing the desirability of a brand offers the bestmeans to improve a brand’s ability to command a price premium.However, the ability to charge a price premium can only besustained if the brand continues to justify its meaningfuldifferentiation. Failing to justify this leaves the brand vulnerableto competitors charging a lower price - although strong marketingcan help a brand maintain the perception of superiority long afterother brands have matched it. Credibility and vitality are critical indriving this perception.By extending the brand’s reach to new countries andcategoriesGeographic growth offers one of the most significant means togrow a brand’s value. The challenge is to take what made the brandinitially successful and extend it to new countries and customers.Often this requires some adaptation of the product and how themeaningful differentiation is communicated. This is not necessarilyan easy task but it is less risky than launching a completely newbrand.Similarly, extending the brand into new categories offers thepotential to leverage an existing brand franchise. This strategyhas the advantage of being able to cross sell to existing buyers ofthe brand. The most successful brand extensions require a good fitbetween the brand’s existing meaningful differentiation and theneeds of the new category.
  • sing social media and creating a regularly updatedbrand fan page is not necessarily right for all brands.Marketers want to understand in advance whethertheir investments will be justified. This article helpsmarketers understand whether fan pages are right fortheir brand and category.Brand fans are important because they are generally the mostvaluable consumers of any brand.BrandZ™ data based on interviews with more than 100,000 consumersglobally in 2010 – in categories from banks and cars to shampoo andcoffee – show that bonded consumers are more likely to become fansof the brand in social media: liking it on Facebook or following it onTwitter.What do these figures mean for marketers like you? Do you need tomake substantial investments in building social media pages andacquiring as many fans as possible? How likely is it that your brandwill be able to build a large social media fan base? This articleprovides general guidelines on the key factors to take into accountwhen answering these questions.This also means that fans of a brand are more likely to be bondedto it. Because these fans are more attitudinally loyal to brands, theyalso spend more on them.UIncidenceofFansbylevelsofrelationshipoftheBrandZ™brandpyramid %114142BONDINGADVANTAGEPERFORMANCERELEVANCEPRESENCEFansandnon-fansshareofwallet(%)FANS NON-FANSSHAREOFWALLET13.4% 2.8%462678310019313750FactorstoconsiderwheninvestinginsocialmediaOn average, fans will spend more than fourtimes as much of their total category budgeton their favored brand than non-fansFactor1:CountryFactor2:CategoryFactor3:BrandPerceptionBy Graham Staplehurst, Global BrandZTMDirector, Millward BrownDuncan Southgate, Global Brand Director, Digital, Millward Brownand Leonid Dvoretskiy, Senior Account Researcher, Millward BrownDoesyourbrandneedsocialmediaandbrandfans?1
  • First of all, the number of fans gained by the average brand indifferent countries varies significantly.For example, if you are choosing which countries to use a fan page tosupport your multinational brand, we generally see larger relevantfan bases in Korea, Sweden, USA, and Poland. Currently, in countrieslike India, Hungary, and Mexico it is comparatively more difficult toacquire a large number of social media fans.Much of the variation we see in the FanZ score correlates with levelsof internet access and social media use in each country. Beyondthis, social media users are converted into brand fans more easilyin some countries than others. Investments in countries where theconversion is easier will be most efficient.Factor1:CountryOur unique FanZ score is based on thepercentage of relevant category userswho are a social media fan or followerof any one brand in that category.Given current levels of social media usage,fandom conversion is particularly high inKorea, Brazil, and China; while acquiringa fan in Hungary seems to be particularlydifficult.Does Your Brand Need Social Media and Brand Fans?Averagenumberoffanswithinacategory,rankedbycountryKOREA 16.6SWEDEN 11.9usa 11.7poland 11.5brazil 10.2australia 9.7spain 9.3china 9.3uk 8.6italy 8.6canada 8.4germany 7.4japan 6.9czechrepublic 5.7france 5.6russia 4.8THailand 4.5mexico 2.8hungary 2.0india 0.5FanZScore(%)AveragerateofconversionofsocialmediausersintobrandfansFanZScoreSocialMediaUsage25201510500 10 20 30 40 50 60 70 80CHINAPOLANDBRAZIL ITALYKOREAFRANCEHUNGARY
  • The category also matters. The categories with the highest averagelevels of fandom globally are IT software, IT hardware, diapers,communication providers, mobile phones and cars.Four out of the top six categories are connected with technology,which is unsurprising since consumers of these categories are likelyto use the web more. Brands in technology-related categories haveembraced social media to engage with their audience and provideconsumers with the latest brand information.It is also unsurprising to see diapers in the top list as this categoryembraces a very specific type of consumer. Parents are veryconcerned about their children so look for additional information,connection and reassurance through social media, and are highlywilling to discuss brands.The car category has always been one of the most popular subjectsfor offline discussions in many countries. With the growth ofinternet usage, we have seen a natural transition of discussions tothe online arena (in social media, forums, blogs, etc.), and brandsnaturally want to leverage their own communications throughdiscussion.In contrast, categories such as motor fuel or detergents are muchless popular topics for discussion (whether offline or online). Thisis clearly a barrier to generating large numbers of fans in thesecategories.The country and category rankings given previously can be used byyour brand as a general guide to evaluate potential audience scale insocial media.However, it is important to always keep local market specifics inmind since the categories with the most fans in a specific countrymight differ significantly from the global picture.For example, the car category in Poland evokes especially highfandom. Nine car brands appear in the top 100 list of Polish siteswith the most fans.Brand fandom levels can also vary significantly across countries. Forexample diapers evoke incredibly high fandom in the US relative tothe global norm. This is primarily due to the impact of Pampers andHuggies, which have almost 900,000 fans on Facebook.Factor2:CategoryDoes Your Brand Need Social Media and Brand Fans?FanZ Score4-5% 6-7% 8-10% 11-13%Hair CareInsuranceGrocery StoresDeoderantMineral WaterOral CareMotor FuelDetergentsFast FoodBody CareBanking/FinanceSoft DrinksCoffeeSpiritsFace CareCredit Card NetworksBeersAirlinesApparel (men)E-commerceApparel (women)Home EntertainmentIT Software & GamingDiapersCommunicationsProvidersMobile PhoneHandsetsIT Hardware &PeripheralsCarsHarder to build a fan base Easier to build a fan baseCarcategoryinPoland FanZ Score %CAR CATEGORY 1812AVERAGE ACROSSALL CATEGORIESBRAND FANS POSITIONKia 18,801 62BMW 17,150 65Mercedes-Benz 14,346 71Honda 9,944 85Volvo 8,881 88Skoda 6,731 94Renault 6,008 96Chevrolet 5,004 99Fiat 4,945 100
  • Brand Value Perception is correlated with fandom. Good valuebrands that are able to justify their premium price tend to have themost fans. Since fan pages provide the opportunity to keep in touchwith brands, it is not surprising that consumers reach out more todesirable but attainable brands.Brand Personality Perception is another factor that is also correlatedwith brand fandom. Brands that have more fans tend to be perceivedas particularly creative, trustworthy, and desirable.If your brand already has this kind of personality you might find iteasier to attract fans.Factor3:BrandPerceptionDoes Your Brand Need Social Media and Brand Fans?CASESTUDIESLet’s now look at several brand pages with high fandom from theperspective of these three factors: country, category and brandperception.iPhoneinUSAApple iPhone is one of the most followed brands in the world. Thereare hundreds of iPhone-related pages on Facebook and the “Facebookfor iPhone” app page has more than 77 million active users a month.The mobile handsets category has a large number of followers andin the key US market, iPhone is characterized as a creative brand,which helps to justify its premium price.BlackBerryinBrazilFacebook is clearly the major global social networking platformcurrently; it can even help brands build fan bases in markets,such as Brazil, where the popularity of the local leading site Orkutoutstrips that of Facebook. BlackBerry has built a strong socialfollowing in Brazil and has the third-highest number of Facebookfans in the country. The country, category and brand type are wellsuited to social media and this growing brand has taken advantageof this and attracted more than 150,000 fans in Brazil by creating aeasy-to-use page with qualityValueDmapshowingindexedFanZscoresbysegmentHIGH PRICEGOOD VALUE JUSTIFIED PREMIUMPOOR VALUE EXPENSIVE12641 86222HIGHDESRIEBrandPersonality(CharacterZ)correlationwithFanZscoreCREATIVE 0.29TRUSTWORTHY 0.24DESIRABLE 0.23WISE 0.10INCONTROL 0.10FACTOR APPLE iPHONE RATINGCountry USACategory Mobile PhonesBrand value Justifying premiumBrand personality CreativeFACTOR BLACKBERRY RATINGCountry BrazilCategory Mobile PhonesBrand value ExpensiveBrand personality Different, Creative
  • Does Your Brand Need Social Media and Brand Fans?MangoinSpainWith more than 2.1 million fans on Facebook, the clothing brandMango has the second-largest number of fans in Spain. The brand isseen as “good value” and described by consumers as sexy, creative,and desirable. This is reflected in the Mango Facebook page, whichprovides information about the brand and its objectives, sharesphotos and videos with fans, informs fans about special events andfeatures an “Emotions Ranking” app which allows womento share their mood and find out how other “Mango women” arefeeling.McDonald’sinHungaryAlthough Facebook offers potential global reach, your brand mayneed to consider extending beyond this to enjoy global socialmedia success. Brands that want to maximize their global fandomalso need to embrace other local social platforms. For example,McDonald’s has an exceptionally strong brand position in Hungary,however, the level of McDonald’s fandom is very low compared toother countries.FanZ RANKING - LEARN FROM BRANDS THAT ARE ALREADY SUCCEEDINGBy covering the same brands and categories in the BrandZ researchacross more than 20 countries we are able to create a global rankingof the most followed brands in the world.RESEARCH DETAILSThis report was compiled using 2010 BrandZTMdata – a total of over100,000 consumer interviews and over 8,000 brand cases. Theseinterviews were carried out across more than 20 countries with anaverage of more than 18 categories per country.The FanZ score is based on the percentage of relevant category userswho are a social media fan or follower of any one brand in thatcategory.The FanZ question was only asked among social media users (peoplewho participate in any on-line social networking groups - e.g.Facebook, MySpace, Bebo, Twitter or other on-line communities,groups or blogs).To enable cross-country comparisons we factored the data based onweb penetration across countries.This article is based on research conducted usingMillward Brown’s database, September 2011Summary-lessonsformarketersMicrosoft, Pampers, Apple, and AppleiPhone are the clear leaders with FanZ scoresthat significantly outperform both the globalaverage and the rest of the Top 20Although IT and telecom brands dominate the list, the Top 20ranking also contains brands from many other categories includingcars, fast food, beer and credit cards.Top20BrandFandomRankingMICROSOFT 10.5PAMPERS 8.0APPLE 5.9iPHONE 4.8NOKIA 3.8McDONALDS 3.5HP 3.5VISA 3.5SONY 3.4AMAZON 3.2HEINEKEN 3.1COCA-COLA 3.1EAGAMES 3.0BMW 3.0DELL 2.8NIKE 2.8STARBUCKS 2.6SAMSUNG 2.5ACER 2.3TOYOTA 2.2FanZScore(%)GlobalAverageFanZScore=1%FACTOR MANGO RATINGCountry SpainCategory ApparelBrand value Good valueBrand personality Sexy, creative, desirableFACTOR McDONALDS RATINGCountry HungaryCategory Fast foodBrand value Good valueBrand personality All traits low endorsementAs we would expect, stronger brands generate more fans, but we also found that thebrands which generate the most fans tend to have creative, trustworthy, and desirablepersonalities. Premium brands that are able to justify their high price may also find iteasier to build a large fan base.Some categories tend to generate more brand fans, such as technology and alsoother categories that have always experienced more word of mouth communication.Levels of fandom vary around the world: there are more social media brand fans inKorea, Sweden, the USA and Poland, and considering the smaller absolute penetrationof social media, a proportionately large number in Brazil and China.Fans are very valuable; they have much stronger brand equity than non-fans. For anaverage brand, 62 percent of fans believe it has advantages over other brands, versusjust 19 percent among non-fans. Fans spend four times on the brand they are a fan ofcompared to non-fans. This is not something we should attribute to the fan page itself;rather this is due to the brand relationship which led someone to become a fan in thefirstplace.Thechallengeforfanpagesisthereforetodeepenandsustaintherelationshipamong people who are already very positive about the brand.
  • rands in the U.S. have been dealing with this issue forsome time already, but the fact that the country is onthe verge of becoming a nation of minorities adds asense of urgency to the matter. They must win ethnicsegments to stay relevant and grow in a multiculturalAmerican environment. Unfortunately, there is noabsolute answer to this dilemma because the situation each brandfaces is different. However, here are some important guidelinesthat can help you successfully navigate today’s multiculturalmarketplace:BBy David BurgosVice President of Cultural Strategy, Millward Brown@DavidBurgosatMBEthnicTargetedMarketing:DoWeReallyNeedIt?First published in the August 2011 edition ofCMO Council, www.marketingmagnified.comTo target or not to target? That is the questionmarketers often ask themselves when trying toreach out to an ethnically diverse population.Should I develop a separate strategy for each of thesegments that comprise my market, or would havinga universal approach be sufficient? What elementsof my marketing mix should I focus on if I decide tofollow a targeted route? Will the potential results of atargeted initiative be worth the investment needed toimplement it?1. Don’t be an ignorerVirtually all US marketers acknowledge the importance of ethnicsegments. However, many still believe multicultural marketingis not for them. Some believe this because they feel their productcategory is a commodity; others assume ethnic consumers arejust not interested or can’t afford their offering. Quite often, theseassumptions are based on stereotypes. So whether you represent aluxury brand or a product in a category with little differentiation,it is important to understand the relationship ethnic consumershave with your brand. They are an integral part of today’s newmainstream, so you still need them to stay relevant in the future.2. Try to find the right balance between customizationand standardizationSimilar to international marketing, brands operating in amulticultural marketplace have to find the right balance betweencustomization and standardization. Going too far in one directioncan mean efficiencies are lost. Going too far in the oppositedirection can cause your proposition to become less relevant toconsumers. Unlike the international discipline, however, the factthat multicultural marketing deals with diverse people coexistingin the same place poses unique opportunities and challenges. Whilea multicultural marketplace does favor the development of cross-cultural strategies for example, marketers should be careful becausewhat they do for one group is likely to impact the other segments.Consumers do not live in ethnic versus general market worlds.3. Incorporate the ethnic perspective in your brand’sfoundational researchIt is common for brands to develop their marketing strategies basedon the needs of non-Hispanic whites (i.e., the general market) andthen try to adapt these programs to the nuances of ethnic segments.Incorporating the ethnic perspective at the foundational level hasproven to be more effective and efficient.You can determine early onwhether and to what extent a targeted approach is needed. Often atweak in your advertising will be all you need to make it culturallyrelevant, but sometimes more profound actions are required,whether it is around your brand positioning, distribution strategies,pricing structure, or even product development.4. Engage your audience in a culturally intelligentway that avoids forcing the ethnic factorPlenty of data shows that targeted advertising is likely to dobetter than non-targeted communication among ethnic consumers.However, targeted advertising does not guarantee success. To besuccessful, targeted ads still have to meet the basic principles ofany advertising campaign. The problem is that we often focus somuch on the cultural aspect of communication that we forget aboutthose principles. Remember that race or ethnicity is just one of manyfactors that define consumers as human beings, and is certainlynot always the most relevant. Practice discretion in how and whenyou use it—a process that I call “intelligent targeting” in my book,Marketing to the New Majority. Consumers notice forced culturalelements and react negatively to them.5. Do not minimize the role of culture to castingCultural relevance is not synonymous with having diverse castingin advertising. In fact, consumers are likely to reject a “one-of-each”approach as being unrealistic. Include imagery that mirrors thedegree of multiculturalism found in your particular target audience.Dial up diversity and cultural cues if the goal is to attract moreethnic consumers, but always make sure your casting selection flowsnicely within the story.6. Do not limit your conversation with ethnicconsumers to ethnic mediaEthnic consumers are exposed to both targeted and mainstreammedia. Undeniably ethnic media favors the use of targeted messagesand provides a culturally relevant context for your communication.However, mainstream media also offers interesting opportunitieswithin the context of the new mainstream. A concern marketersface with regard to the use of mainstream media to target ethnicsegments is that the message can alienate their mainstreamconsumers. The risk of this happening is actually low. Non-Hispanicwhites don’t necessarily view so-called ethnic communications asbeing geared toward someone other than themselves, even if theyfeature an all-ethnic casting or cultural cues from other racial orethnic groups.7. Continuously assess how both your targeted andnon-targeted strategies are doing among ethnicsegmentsIt is a best practice to always look at how different ethnic segmentsperceive your marketing campaigns, even if they are not specificallytargeted to them. Brands have faced damaging situations for notdoing so. A recent example is Nivea’s “Give a Damn” campaign. Whenyou assess the ROI of your programs, consider not only the moneyneeded to develop targeted approaches (spending perspective), butalso the money you would be losing if you hadn’t implemented them.
  • rik’s book illustrates both the complexity of neuroscienceas a field and the crucial implications it has for brandowners as they seek to make their brands more desirableto consumers and win in the marketplace. It is, therefore,unsurprising that marketing and advertising conferencesnow incorporate a strong neuroscience emphasis, andmany recent papers and articles maintain that scientists’ increasedunderstanding of the brain will change marketing and the way wemeasure it. Buy-ology , by Martin Lindstrom, makes similarly strongclaims: that neuroscience will play a revolutionary role in researchand marketing in future. As a result, many marketers challengeaccepted modes of brand and advertising development and researchon the grounds that “neuroscience says” that what we’ve done beforeis wrong.Similarly, we now see neuroscience being cited in many brandand advertising decisions. The phrase “neuroscience proves...”is increasingly being used to justify a new model of advertisingresponse, brand strategy or advertising research tool (though it’soften useful to examine just how much actual proof follows suchstatements). Most crucially, over the last few years there has beena blossoming of neuromarketing agencies who claim to deploy themethods used by neuroscientists to answer marketing questions in away that conventional research cannot.So we’d be forgiven for believing that traditional qualitative (focusgroup-based) and quantitative (survey-based) techniques are notsufficient anymore and that we need to turn to the methods used bycognitive neuroscientists, such as brainwave measurement (EEG),brain scanning (fMRI) and other biometrics, to really understandhow consumers will respond to marketing.However, despite all the discussion about neuroscience, the vastmajority of brands and ads are still researched using traditionalmethods. Likewise, over the last few years, papers have periodicallyemerged that question the value of the whole area. So who’s right?Are we poised at the start of a revolution or is neuromarketingoverhyped wishful thinking?EBy Graham PageExecutive Vice President, Consumer Neuroscience, Millward BrownUsing neuroscience effectivelyIncreasingourbrainpowerEditor’s Note: This article is a chapter written by Graham Page excerptedfrom The Branded Mind by Erik du Plessis
  • The current state of playOur firm, Millward Brown, conducted its first neuroscience projectin 2004, and since then we have reviewed all the key methodologiesavailable in this area, working with our clients, neuromarketingpractitioners and academics. Our experience is that marketers areincreasingly turning to neuromarketing and they will continue to doso more and more. But this has been a gradual process for severalreasons:• Marketers are rightly being cautious.Neuromarketing is new and to some people controversial. So they areworking with partners who they trust to do their homework beforeadopting more widely.• There are still significant practical hurdles.The technologies are not available everywhere, and the logistics ofbrainwave measurement or brain scanning are not trivial. Testingrobust numbers of participants is often expensive - or worse, notdone.• The extreme claims of some of the early practitioners in thefield have inspired some skepticism.• Many of our clients believe their work in this area has thepotential to generate significant competitive advantage andso are understandably coy about sharing too much publicly.• Most marketers quickly realize that neuroscience methods inisolation can be hard to interpret and don’t stand alone.This last point is crucial. Over the last six years we have examinedall the main techniques in the area and compared them to theexisting qualitative and quantitative work we do to ensure a realisticperspective on what the science can and can’t say. We’ve seen thatthere is clear and significant value in certain neuroscience methods,but only when used alongside existing methods rather than asa replacement and only if interpreted with care by people withexperience in the field.To this end, in 2010 we created a dedicated neuroscience practice toensure that, as a business, we would implement neuroscience-basedapproaches in a realistic manner that added to our insights aboutconsumers.Applied testsWhen deciding which methods to use, we have applied the followingtests:• Does the method tell us something meaningful about brandsor marketing?• Does the method tell us something we don’t already know(and enough to justify the costs)?• Is the method practical and scalable?There are neuroscience-based methods that meet all three of thesetests. These are: implicit association measurement, eye-tracking andbrainwave measurement.Excerpt from The Branded Mind
  • Implicit association measurementWhile not strictly speaking a neuroscience technique, what itshares with more biometric methods is the principle of inferringconsumers’ responses rather than asking direct questions. Theapproach measures consumers’ reaction times or accuracyon tasks that are systematically biased by their reactions to brandsor ads. At first this sounds strange, but the approaches capitalize onthe way the brain stores information - as a network of connectionsrather than isolated units. It is for this reason, that, for instance,thinking about the idea of a “doctor” means you will tend to respondfaster to a related idea like “nurse” than an unrelated one like“plumber.”Similarly, if you feel positive you will tend to respond faster topositive words and slower to negative ones, but this is reversed ifyou feel negative.Implicit association methods have a long history of use in cognitivepsychology to infer unstated processes and responses, especially inresearching socially sensitive areas, such as people’s biases towardsdifferent races or genders. They offer market researchers a windowto the raw ideas and feelings stirred up by brands and ads, prior toany filtering for sense or social desirability, which still may play arole in shaping consumers’ responses.We have used these methods in a variety of markets and with arange of clients to understand the implicit associations activatedby brands, by ads and by hard-to-discuss stimuli such as brandlogos. For instance, we recently used this approach to research anaward-winning Australian TV ad for Allen’s (a confectionery brand).The spot featured a giant doll walking the streets, blowing bubbleswhich turn into the product and rain down onto a crowd of childrenand parents. The ad was designed to reinvigorate the brand, which,although a long-time favorite, had lost some relevance and presencein the market, by reminding consumers of the magic of childhood.The ad proved to be hugely engaging but the implicit association testidentified that the ad worked in a way somewhat different from thatexpected. While explicitly consumers played back messages of funand happiness, implicitly, the spot also communicated irresistibilityand playfulness.Also, while explicitly the ad was not directly persuasive, the implicitmeasures revealed that it strongly reawakened the emotionalconnection to the brand. Therefore rather than being a simplenostalgic look at a trusted favorite, the ad functioned very stronglyas a modernizing ad while highlighting the playfulness of childhoodand reinvigorating the emotional resonance of the brand.Similarly, in Poland we recently conducted some logo research fora financial services client. Logos are a topic that consumers finddifficult to talk about as they are not usually subjects of muchthought but they are full of nuance and symbolism. Although theresults from explicit ratings correlated with results from thisimplicit test, the implicit method pulled out a much clearer winner,suggesting that this is a useful approach for this type of research.Excerpt from The Branded Mind
  • On the whole, we’ve found this type of approach allows us to see inmore depth whether a brand is achieving its desired positioning,or if a campaign or logo has the potential to shape a brand’sperceptions in the intended way.Eye-tracking researchEye-tracking technology is now widely used, partly because ithas become simpler to implement and cheaper than in the past.The benefits are clear: eye movements indicate the focus of visualattention with more detail and accuracy than self-reported answers.However, the method doesn’t reveal why a particular area of an adcatches the eye or how people respond to it, which is why it can bedifficult to interpret in isolation.We have used this approach in a number of markets and havefound it a useful additional diagnostic technique that helps explainadvertising or packaging performance as measured via conventionalsurvey methods. In one example, we tested a particular scene froma well-known Skoda Car ad in which the car is built entirely fromcake. This ad was shown to be powerfully branded to Skoda in ourLink survey work and eye-tracking helped illustrate why. Visualattention was clearly focused on the Skoda badge when it is affixedto the front of the cake-car. However, this contrasted with dispersedvisual attention at the end of the ad when the Fabia nameplate ismentioned, which was a useful diagnosis of the weaker nameplate-branding we saw in the survey results. In a similar project for RoCskincare, we found a powerful illustration of a communicationbarrier due to misdirected attention during a key scene. Using thisinformation the client was able to re-edit the ad and generate amuch stronger final film.Brainwave measurementBrainwave measurement is perhaps the most complex area inneuromarketing, due to the variety of systems and companiesoffering them. Millward Brown conducted one of the first large-scale commercial EEG projects in the U.K. for the NewspaperMarketing Agency in 2005. Since then we have partnered with U.S.-based EmSense to integrate EEG and other biometrics with surveytools. Using a headband with dry electrodes, EmSense collectsEEG and secondary biometric data, such as heart rate, respiration,blink rate and body temperature. This method not only makes theequipment less intimidating for participants and simpler to apply,we have found it is also more cost-effective than conventional EEGequipment, which tends to use full-head skullcaps and gel to makeconnections with the scalp. Consequently, it enables full quantitativetesting (e.g., samples of over 100 versus the 20 or so typically usedin conventional EEG) and so allows cross-analysis with explicitquestions and metrics.We have therefore deployed this technology in several countries andit has become an important component of the ad development workthat we do. This is because brainwave data can provide a powerfuldiagnostic of people’s reactions to an ad or brand experience on amoment-by-moment basis, revealing responses that are so quick orfleeting that respondents may not even remember them, let alonebe able to objectively report them. This can also be particularlyuseful in markets such as India, China and Latin America, wherethe tendency for research respondents to be positive on surveysExcerpt from The Branded Mind
  • is stronger and where we may miss some negative responses as aconsequence.We conducted Link survey based research on the Dove “Evolution”film - an engaging, emotionally resonant and powerful communicatorof the core idea of encouraging real beauty. The EmSense dataillustrates the journey consumers take to get to that set of responsesand which creative elements drive this response. While the modelis being made-up, positive emotion actually rises (which is notsomething viewers report verbally). There is also a crescendo of bothpositive emotion and cognition at the moment it is revealed thatthe film is about the making of an ad; as understanding blossomsand the cleverness of the idea is apparent. This is crucial to theoverall positive reception the film generates. However, it is also clearthat as the implications of this moment sink in, positive emotionsdecline as the point of the ad is considered, which is what gives thecommunication such power.Work using this form of EEG with other clients has helped revealand address issues such as weak communication, branding ordisengagement with key protagonists. It has also evidenced whichelements of an ad should be retained in cutdowns of long-form adsand which elements to pull out for use in other parts of campaigns.While we have focused on these three approaches, it is importantto remember that there is no one-size-fits-all neuroscience-basedtechnique; depending on the individual client issue one approachwill be better suited than another.For instance, we have used fMRI with the Royal Mail for a projectabout the effect of physical versus virtual media in marketingeffectiveness. However, it is limited in its scalability so we haveused it less extensively than the other methods outlined above. It isimportant, however, that marketers use the right tools for the issuethey face, rather than treating neuroscience as a single entity andtrying to use one tool to do everything.No substitute for talking to peopleIt is a misconception, and a scary one, that marketers will be able to(or want to) just measure people’s responses to brands via electrodesand work out what they really want. There is still no substitute fortalking to people, as this is the only way we can understand thewhole meaning of their relationships with brands and products. Thepoint of market research is to generate insights that lead to moredesirable brands, rather than to use the latest methods for the sakeof it. For this reason we don’t believe neuroscience methods can everreplace the need for conversation with consumers, though we dobelieve they can be a powerful complement to it. In addition, on apractical level, survey-based techniques have been shown over manyyears to have a demonstrable link to consumer behavior - and suchlinkages are still being forged for neuroscience methods.Turn their backsWe don’t believe that marketers need to turn their backs ontried-and-true research techniques in favor of neuroscience, but wedo believe that neuroscience can offer an additional perspective onconsumer responses and motivation.Therefore, the approach we’ve taken has been to roll outneuroscience-based methods alongside - and integrated with -existing tools, rather than as a replacement. Each method is usedwhen it will add value and when it is relevant to the client issue.When should neuroscience-based techniques be used? Neuroscience-based techniques will tend to add the most value under certaincircumstances:Dealing with sensitive material. This is when qualitative/ surveymethods are most vulnerable to distortion, so methods that don’trely on explicit questions can reveal unstated attitudes moreeffectively.Excerpt from The Branded Mind
  • Dealing with abstract or higher-order ideas. Consumers facechallenges when trying to talk about the often complex ideas at theheart of many brands’ positioning. Implicit association methods,in particular, can be useful at probing for ideas that participantsthink sound strange or overblown on a survey or which they mightdiscount as irrelevant when answering explicit questions.Probing for transient responses to ads or brand experiences.Consumers are great at talking about the gist of an ad or brand orexperience but they may not be able to articulate all the steps in theprocess that got them there. Biometric methods, such as EEG, canadd value in pinpointing the emotional or cognitive highlights andlow points in a piece of creative, or the focus of attention, which canprovide useful insights for developing more effective campaigns forbrand experiences.Giving more detail on consumers’ feelings. Feelings can be difficultfor people to talk about, though qualitative and survey-basedmethods can help people do this. However, neuroscience methodscan add an additional level of detail here, about the depth ofemotional response, the timing of these responses and the elementsof an ad or brand that are driving the way consumers feel. Given theimportance of emotion in motivating behavior, these methods have arole to play here.In terms of specific research applications, the differing advantagesof each method mean they lend themselves to different areas ofresearch. Implicit association measurement is well-suited to brandstrategy work, product testing, concept testing and assessment ofcommunication from marketing campaigns. Eyetracking is strongon in-store and online marketing optimization and advertisingdevelopment. Brainwave measurement adds greater detail in theseareas, especially regarding emotional and cognitive responses, andthus lends itself to advertising optimization.Best practicesBased on our experience researching and implementing thesemethods, we suggest the following best practices to get the most outof neuroscience:Be critical. The technology can be alluring, but the same questions(detailed above) that would be asked of any conventional researchtechnique should be asked of these methods. Ask for proof.Look for experience. This is a complex area, so familiarity with theapproaches and a scientific perspective is important to understandwhat is claim versus reality and when neuroscience adds mostvalue. Likewise, experience in drawing together neuroscience andconventional research is key to maximizing the value.Integrate. Neuroscience-based methods do not reveal the innertruth; rather they provide additional perspective on consumers’responses to brands and marketing, which needs interpretation inthe light of other information. A holistic approach reveals greaterinsight than conventional or neuroscience methods alone.A standard toolOur experience suggests that in the future, neuroscience-basedresearch will be a standard tool in the researcher’s toolkit butit won’t be the only tool. Neuroscience techniques on their owncan’t fully explain consumers’ responses. The most completeunderstanding will come from integrating information rather thanlooking at one perspective alone and using the right tool at the righttime.Excerpt from The Branded MindFirst published in the May 2011 issue ofQuirk’s Marketing Research Review
  • KNOWLEDGEPOINTSKnowledge Points are drawn from theKnowledge Bank, consisting of our databasesof over 150,000 brand reports and 95,000ads, as well as 1500 case studies
  • dvertisers often ask us how many GRPs they canput behind an ad before it “stops working.” Theyalso wonder if past copy can be rerun or if it has noremaining value. These are important financial issuesfor them. Producing TV ads is expensive and requires along lead time. Airtime may need to be booked months before actualairing, and an assessment of the number of ads required needs to bemade early.How might TV ads wear out?Conceivably, an ad might wear out in its ability to accomplish any oneof the basic advertising tasks. An ad could wear out in terms of:• Generating engagement, i.e., making people aware that the brandhas advertised• Creating an attitudinal or empathic response among viewers• Communicating messages or impressions• Producing a brand response, including salesEngagementMillward Brown measures Engagement through the Awareness Index,a metric that describes a brand’s ability to make people aware thatthe brand has advertised. Our evidence suggests that in this respect,TV ads very rarely wear out. We analyzed 450 ads that aired in two ormore bursts and observed that the Awareness Index (AI) changed inonly 6 percent of cases. (And in the cases where the AI changed, thedirection was evenly split: AIs went up in 3 percent of cases and downin 3 percent of cases.)Ads that are good at generating branded awareness tend to remain soover time. However, factors external to the ad itself can occasionallyseem to cause wearout in this respect. One such factor could bethe ad’s content — for example, if a featured celebrity falls out offavor with the public. But another more common cause of apparentwearout is heavy media spending over a short period of time. Whenthis occurs, multiple exposures will net more repeat viewings thannew ones, limiting any incremental increase in advertising awareness.Attitudes/empathyMost of the time, attitudes toward an ad hold steady over bursts.The two charts below, generated from data in our tracking database,illustrate this. For both the positive statement “You enjoyed watching[the ad] a lot” and the negative statement “You’re getting fed up withseeing it,” there is a strong correlation between the level of agreementon the first and second bursts of advertising.When we do see attitudinal wearout, it tends to occur when anad that some viewers find irritating is aired with heavy spend.Alternatively, an ad can become less enjoyable if some aspect of itgoes out of fashion. For example, we tracked an ad that featured acurrent pop song, which aired in three bursts over a two-year period.During the first burst, 71 percent reported enjoying the ad. But by thethird burst, the enjoyment score had plunged to 56 percent, as thesong had lost its appeal and freshness.KNOWLEDGEPOINTDOTVADS“WEAROUT“?Broadly speaking, the response generated by a TV addoesn’t change much over time. True “wearout” of a TV adis rare, and many TV ads could have a longer useful lifethan advertisers realize. The one real exception to thisrule has to do with ads that focus on product news.Such ads will become less effective over time, because thepeople who are receptive to the message will be persuadedquickly, while those who are not receptive will not bewon over by repeated viewings. Saturation of media weightover a short space of time can also create the impressionof ad wearout; however, in such cases it may be the mediabuying strategy, rather than the effectiveness of thespecific execution, that needs to be reviewed.AFIGURE 1: EnjoymentFIGURE 2: Getting fed up with seeing10090807060504030201000 10 20 30 40 50 60 70 80 90 100% ‘You’re getting fed up with seeing it’(141 ads)FIRST BURSTSECONDBURST% ‘You enjoyed watching it a lot’ (258 ads)10090807060504030201000 10 20 30 40 50 60 70 80 90 100FIRST BURSTSECONDBURST
  • KNOWLEDGEPOINTDOTVADS“WEAROUT“?CommunicationIn terms of communication, the effectiveness of TV ads tends notto change over time. The messaging does not wear out, as shownin the chart below, where a key message registers consistently ontwo different bursts of advertising. This consistency is due to the factthat viewers don’t tend to notice new things each time they see anad. Rather, they focus on the parts of the ad that they initially foundinvolving.Brand and Sales ResponseThe area in which TV ads are most likely to wear out is in their abilityto generate responses to brand measures and/or to motivate newpurchases. This type of immediate response is measured through ourpersuasion questions, and wearout in this type of brand response islikely to occur in ads that depend on news. Ads with new and differentmessages will typically convert all the consumers they are capable ofconverting in a fairly short time. This happens because people whodo not notice the message or don’t find it relevant are not likely tonotice it or find it more relevant with subsequent viewings. Thus the“news” quickly ceases to be new, and there are no viewers left to bepersuaded.This is illustrated in the following example, where the level of newsand persuasion decline over time, even though enjoyment of the adholds steady.Recognizing and Dealing with WearoutAs we have demonstrated, wearout sometimes occurs—or appears tooccur—in engagement, when saturation of media weight over a shortspace of time creates the impression that the ad is no longer havingimpact. These cases, where spend produces increased frequency atthe expense of coverage, shouldn’t be regarded as wearout. Rather,the apparent decline in ad impact is an effect of diminishing returns.If the ad is aired again sometime later, its ability to generate brandedimpact will most likely be as strong as it was initially. It may be thatthe media strategy is intended to build heavy frequency, in whichcase this outcome is to be expected. But if this isn’t the intention, themedia strategy may need to be revisited.While the attitudes produced by TV ads tend to remain consistentover time, some ads do have the potential to generate increasinglevels of irritation on repeated viewing, and ads that reference currenttrends or events in popular culture may become less enjoyable overtime. It is worthwhile to monitor these attitudes over time for long-playing ads.Ads that focus on product news are definitely susceptible to wearout.Such ads will become less effective over time, because the peoplewho are receptive to the message will be persuaded quickly, whilethose who are not receptive will not be won over by repeatedviewings. In anticipating whether or not this is likely to occur, it isimportant to consider the ad’s objectives and whether the message isintended to be perceived as new. An ad with a message that is new,relevant, and different may challenge consumers’ buying habits whenthey see the ad, thus increasing their consideration for the brand. Thismay lead to increased trial. An ad with a radically different creativestyle may accomplish the same effect. As we have said, wearout willgenerally occur only in the ad’s ability to persuade, as measured byour Immediate Persuasion question. Can we predict the point atwhich an ad’s ability to persuade has worn out? Every case will bedifferent; even within each country, the variability in the effectivenessof the advertising copy can be massive and media plans can varyenormously. But we can say that this wearout is likely to occur whenthe the ad’s reach has been maximized. Once the ad has been notedby the bulk of its likely viewers, its news value will dissipate.We can provide some general country-specific guidelines basedon our knowledge of how advertising awareness builds in responseto spend. By assuming average weekly spend (per country) for anaverage ad, and average effects from other conditions, the cumulativeGRP spends in the table below will generate around 90 percent of theadvertising awareness likely to be achieved.FIGURE 3: Key message - strongly suggestsKey message - % strongly suggests (118 ads)10090807060504030201000 10 20 30 40 50 60 70 80 90 100FIRST BURSTSECONDBURSTFIGURE 4: News does wear outEnjoymentNewinformationMorelikelytobuyJan-FebSep-Oct Mar-Apr88%67%66%83%61%62%85%55%50%Country GRPs Country GRPsPhilippines 7000 Czech Rep 1350Indonesia 3350 Denmark 1300Vietnam 2400 Hungary 1300Chile 2100 Ireland 1200Portugal 2000 South Africa 1200Turkey 2000 India 1150Pakistan 1750 Malaysia 1150Romania 1750 Sweden 1150Brazil 1700 Russia 1100Italy 1650 Australia 1050Thailand 1500 China 1000Mexico 1500 France 1000Netherlands 1500 Japan 1000Poland 1500 USA 1000Spain 1450 Germany 900Argentina 1350 UK 900FIGURE 5:
  • KNOWLEDGEPOINTDOTVADS“WEAROUT“?We should emphasise that this type of wearout relates only to adsdependent on news for their effectiveness. Also, these are generalizedguidelines only. The actual effects of any wearout that occurs willvary by a whole host of factors relating to the ad, brand, category, andmarket. Each of these factors can have a meaningful impact on therate at which the ad wears out as well as the effectiveness it retainsafter the ”news” has faded.When an ongoing campaign depends on challenging consumersby delivering news, it needs to be periodically refreshed with newarguments and/or new executions, for two reasons. First, the “news”needs to be kept new and relevant to those persuaded by the firstpresentation, and second, a new approach may persuade those whowere previously unconvinced.However—and this is key—just because the news value has dissipated,the ad is by no means worthless. It will continue to contribute to salesby reminding people of the good things about the brand and theinteresting and engaging aspects of the brand’s personality.When to move on?The majority of campaigns are successful without relying on aconstant supply of news; instead, equity and clarity of positioning isbuilt through consistency of messaging that is memorably associatedwith the brand (as measured through the Awareness Index). In thesecases, ads can have a long shelf life. Repetition can help to builda brand in the long term, even if a short-term brand response isminimal. So before an ad or campaign is assumed to have worn out,long-term sales effects should be investigated.But this doesn’t necessarily mean that the same execution can beused ad infinitum. While it’s true that many executions could be usedlonger than they are currently, there are a number of reasons foradvertisers to move on with new ads. To ensure long-term success,brands need to project a sense of leadership. To create this sense ofa brand leading the way, new ad executions are likely to be needed. Inaddition, the competitive context needs to be kept under review; if acompetitor changes campaign, this could negatively affect your sales,making it necessary to refresh your activity. It is also important tolook at the broader picture, considering areas such as the continuingrelevance of the strategy and positioning, changes in the target group,and where the brand is in its lifecycle.Ultimately the judgement will be one that assesses the opportunitycost: Will a new ad, with a potentially refreshed (or new) message,be more effective than an existing ad, and will that increasedeffectiveness justify the cost of creating that ad?Campaign WearoutCampaigns can wear out in the same ways that individual ads can. Inthe example illustrated by the chart below, a long-running campaignfeatured a particular celebrity with the potential to irritate. Irritationdid grow over the course of the campaign; this was particularlyevident in ad L, but even ad P, in which strenuous efforts were madeto address the irritation issue, was still found to be considerably moreirritating than the early ads in the campaign.Another possible cause for campaign wearout is related to changesin society and attitudes over time. A good example from the UK isthe PG Tips “Chimps” campaign, which was dropped after 40 yearsbecause attitudes toward performing animals had changed.When assessing campaign wearout, some specific issues need to betaken into consideration. For example, an apparent issue could be dueto specific executions rather than the campaign as a whole; a new admay be performing less well in terms of brand integration or clarity ofmessage, or the mix of ads in the campaign may have changed andbecome less effective.In one example, wearout of branded impact seemed to be occurringover the campaign. Subsequent ads were becoming less efficient. Wefound two reasons for this. The weight of spend was increasing overtime, resulting in a degree of media saturation. But there was alsoa lack of product integration in the later ads that indicated that thestructure of the individual ads needed to be refocused. Additionally,some campaigns that seem to be wearing out can be revived, perhapsby a product innovation, or a new slant to the scripts.How does the use of PVRs affect wearout?It’s possible that increased adoption of PVRs may cause wearout of TVads to increase. This could happen if PVR viewing makes people morelikely to fast-forward through ads they have seen before. However,currently there is little evidence that such behavior has a significanteffect, and research by Millward Brown suggests that ads seen infast-forward mode can be just as strong at sustaining ad awareness,provided they’ve been seen at regular speed previously. (See our POV“Who’s Still Afraid of the DVR?” )FIGURE 6: Irritation with campaign grows%131512151711111718202232232825191920ABCDEFGHIJKLMNOPCampaignaverageCategoryaverageAd
  • hile most parts of the world have been officially out ofrecession since the summer of 2009, the economicrecovery in most Western countries has not been strong.The current uncertainty about the economic climate,especially the speculation that we may experience adouble-dip recession, is making both consumers and marketersnervous.During the 2008 downturn, there were regular reports of consumersstruggling with their finances. For example, two-thirds of Australiansreported that their spending habits were affected by the financialclimate, with four in ten reporting that they spent less on staples.(And technically, Australia was not even in recession.) In the UnitedStates, spending on credit cards increased markedly in areas of highunemployment, and fewer consumers reported paying their creditcard bills in full every month.During times such as these, in the face of pressure on people’sbudgets, many marketers choose to meet profit targets by usingpromotions to maximize short-term sales while cutting investment inlong-term build-branding activities.The Importance of a Strong BrandWhile the reaction to cut investment in seemingly non-essentialactivity is understandable, it doesn’t bode well for brands in thelong term. Our analysis (see chart below) shows that as a group, thestrongest brands—those in the BrandZ Top 100—have outperformedthe S&P 500 since the recovery began.Conversely, brands that were already weak going into the recessiontended to suffer disproportionately.A powerful example is the retailer Woolworths. Though the chainwent out of business in the United States in 1997, it was stillconducting business in the UK during the first decade of this century.However, its brand equity pyramid had shrunken considerably from2001 to 2008, and Woolworths failed to survive the recession, closingits doors in 2009.Clearly, brand strength needs to be nurtured and maintained throughgood times and bad. Based on our decades of experience studyingand advising brands, we can make five recommendations formarketing and maintaining brand health in uncertain times.1. Review your marketing plansIt is never a bad idea to review your marketing plan, but duringchallenging times, it is especially important to re-examine thefundamentals; both vulnerability and opportunity could be uncovered.An example of a brand that addressed a vulnerability is Barclaycard.In the UK, Barclaycard ran a successful celebrity-based campaign formany years. But by 2008, it was clear the brand was losing relevance.It was seen as old-fashioned and was not appealing to the newgeneration of card holders. A major research program investigatedthe attitudes and behaviors of these younger consumers, and led tothe development of the completely new “Waterslide” campaign. Salesmodeling showed the new campaign generated £22m profit.An upscale brand in the personal care category found a way to turn apotential vulnerability— its premium price—into an opportunity. Backin 2000, Dove recognized the challenge for its premium moisturisingsoap in its Turkish markets. Because it was much more expensive thanregular soap, Dove was traditionally targeted at upscale women. Butduring the 2001 recession, a new brand team crafted a value-orientedappeal to middle-income consumers—a far larger audience—basedon the proposition that Dove both cleans and moisturizes. Dove morethan doubled its share of spend from 2000 to 2001, resulting in amarket share gain of 5 percentage points by the middle of 2002.In times of economic uncertainty, marketers tend toshift their focus from long-term strategy to short-termsales. However, lessons from recent recessions providepowerful arguments for maintaining a longer-term view,even in the face of pressure to cut advertising in favorof promotions. Marketers who resist this pressure anduse their budgets effectively and creatively will findthat their brands emerge from the tough times in goodcompetitive shape.WKNOWLEDGEPOINTMARKETINGINUNCERTAINTIMESKNOWLEDGEPOINTFIGURE 1: BrandZTMPortfolio vs. S&P 500 (Apr 2006-2011)©The Brand Dynamics Pyramid and the underlying methodologies are the copyright of Millward BrownFIGURE 2: The Decline of Woolworths7%55%67%79%93%32%59%75%85%1%BondingAdvantagePerformanceRelevancePresenceBase (400) (400)2001 2008BrandZTM Portfolio S&P 5006040200-20-40-60(%) Jan07 Jan08 Jan09 Jan10 Jan11Source: Bloomberg; MB Optimor London Analysis41.8%-3.7%
  • 2. Beware of reducing your ad spendWhile reducing advertising spend can seem to be a logical way tobolster short-term profitability during a recession, it can also delivernegative consequences. This is in part because advertising has bothlong- and short-term effects on brands. On average, the ratio oflong- to short-term effects is about 3:1, though this varies widelyacross campaigns, and we have seen campaigns with ratios as highas 5:1. (Note: Short-term effects are generally defined as those thatoccur in the eight weeks following the start of advertising.)While brands that “go dark” don’t seem to suffer major shifts inbrand perceptions, 60 percent of them deteriorate on at least onekey aspect. Such losses can herald problems in the future, sinceonce declines set in, they can be hard to reverse. The chart belowprovides an example. A brand came off air in one region (Region B)while it continued advertising in the rest of the country. Within a year,market share had dropped 2 percent in Region B while it held steadyelsewhere. And—critically— even when advertising resumed in thedark region, the share in that region continued to lag behind the restof the country in the two subsequent years.The long-term effects of advertising are also illustrated by therelationship between share of market (SOM) and share of voice (SOV).It has been proven that when a brand’s SOV exceeds its SOM, thebrand is more likely to gain share in the following year. Decreasingspend might cause your SOV to slip and leave your brand vulnerable.On the other hand, if you increase your marketing investment at atime when competitors are reducing theirs, you should substantiallyincrease the saliency of your brand. This could help you establish along-lasting advantage.A Millward Brown analysis of 354 brands, summarized in the chartbelow, highlights the value of maintaining advertising investment.Brands were ranked according to their spend in relation to theirmarket share. Then, according to this rank order, they were combinedto form 20 groups (the first group consisting of the brands withthe highest difference between SOV and SOM, the second group,the next-highest difference). This measure is represented on thehorizontal axis of the chart below. Each group of brands is positionedon the vertical axis according to the percent of brands in each groupthat lost market share in the subsequent year. The declining trend lineclearly shows that relative under-investment is linked with a greaterrisk of market-share decline.Increasing ad spend at a time when other brands are cutting theirsmay seem unnecessary or even wasteful. But at such a time—whendemand for media time and space is decreasing— media costs arelikely to go down, and you may be in a strong position to strike agood deal. In the UK, Audi, with a new campaign, increased its mediaspend by 10 percent from 2008 to 2009; as a result, its order bookwas up 79 percent. Also in the UK, Heinz increased its weight of spendin 2009 to address the threat posed by store (shop’s own) brands;as a consequence, Heinz became the fastest growing major CPGcompany in the UK.KNOWLEDGEPOINTMARKETINGINUNCERTAINTIMESFIGURE 3: Region B suffers in Year 2 and Year 3Market shareRegion ARegion BYear 1 %10-1-2-3Year 2 Year 3FIGURE 4: Advertising investment reduces risk100500%LOSINGSHAREMEDIA PRESSURE(SHARE OF VOICE-SHARE OF MARKET)-30% 0% 30%
  • 3. Ensure your copy is working as hard as possibleWhile ideally you should aim to at least maintain your level of spend,you may be able to compensate for reduced spend with strongercopy. That is, with more impactful creative, you may be able tomaintain or even increase your level of ad awareness, even with areduced budget. The chart below summarizes the brand outcomesfor various combinations of share of awareness and share of voice.When both of these measures declined (lower-left quadrant),brands tended to lose share. When they both increased (upper-rightquadrant), brands tended to gain share. However, when share ofawareness increased and share of voice declined (the lower-rightquadrant), more brands gained share than lost it. Thus strong creativecan provide powerful leverage for your spend.So then the question becomes – how do you increase ad awarenesswith lower spend?The answer is “creativity.” Great advertising is memorable. By 2009,Barclaycard’s “Waterslide” campaign was recalled by 46 percent ofpeople, and ranked among the top 10 publicly voted “Ads of theDecade.”Analysis of our Link copytesting database shows that overall averagescores did not change during the recession. Despite tightened belts,people continued to find advertising to be relevant or irrelevant,enjoyable or not enjoyable, involving or not involving, in the sameproportions as before. The rules of effective communication do notchange during a recession; great advertising is still great advertising,even in uncertain times.4. Be creative with mediaCareful and innovative use of media channels can pay dividends,particularly with the recent increases in the number of mediachannels. While the Barclaycard “Waterslide” campaign aired on TV,it also aired in cinemas, and was supported in print, online, and withPR. Additionally there was an iPhone game, and the ad went viral onYouTube, with over 7 million hits.If you use a particular vehicle to make contact with customers, usethat vehicle to deliver special offers, relevant news, and information.During Brazil’s 2002 recession, Unilever launched a customermagazine, Diva, to communicate with key customers. The result ofextensive research, Diva contained articles on money-making ideasas well as Unilever brands. It also incentivized readers to buy Unileverbrands by offering to pass some of the profits on to charity.5. Don’t get defensive; use promotion sparinglyThe use of price promotions to help generate consumer spending,while common, can damage brands. One brand that had reducedmedia expenditure reported increasing share in line with promotions.Analysis showed that, in fact, the share increases were entirely due tothe price promotion.The brand’s underlying base sales for the brand were in decline, andthis decline was matched by tracking study measures.In product categories where the brand is less important (such asmotor fuel, mineral water and grocery stores), price promotions aremore likely to be effective, but even so, these are likely to erode brandequity. In the UK, as a result of a price war in an over-the-counter(OTC) brand category, the total volume sold on promotion increasedby 15 percent in one year. The result was that value was driven out ofthe market—the total value of the category fell by 14 percent. At thesame time, loyalty to specific brands declined; while 81 percent ofbuyers were “loyal” to a brand before the price war, just over half (55percent) remained so afterward.Premium brands may feel threatened when consumers are keeping atight grip on their wallets, but being premium in itself isn’t necessarilya problem. When the premium car brand Audi reoriented its campaignaround the rational message of fuel efficiency, its brand desirabilityincreased. With positive and proactive management, brands—evenpremium brands—can ensure their long term success even duringuncertain times.SomeoftheexamplesandcasestudiesusedinthisarticlearefromtheIPAEffectivenessAwardsKNOWLEDGEPOINTMARKETINGINUNCERTAINTIMESFIGURE 5: Share of awarenessIncreaseshare of voiceDeccreaseshare of voiceDecreaseshare ofawarenessIncreaseshare ofawareness19%morebrandslosesharethangain20%morebrandslosesharethangain31%morebrandsgainsharethanlose12%morebrandsgainsharethanlose
  • he voiceover is a very common feature of TV advertisingacross the world. Of the ads in our Link database, 89percent include voiceovers. Since they are so commonand can be edited relatively easily, voiceovers are a worthytopic for scrutiny.What Voiceovers Do Well: Aid Communication of InformationVoiceovers are often used to convey information, and they can dothis effectively. On attributes related to news and information, adswith voiceovers score slightly but consistently higher than ads withoutvoiceover. Not only are key messages communicated better, but adswith voiceovers score higher on credibility, conveying new information,relevance, and persuasion. The indexes on these measures for ads withand without voiceovers are compared in the table below.Changes made to a voiceover can lead to dramatic improvement in anad’s performance. When a taste message came through only weaklyfor an ad for a new biscuit in China, adjusting the voiceover made adifference. In the original ad, the intended message registered withjust 34 percent of respondents, well below the norm of 55 percent.When this new voiceover was added: “delicious but does not leave themouth feeling dry,” communication of the taste message shot up to 53percent. When the voiceover was modified further, to “really delicious,”communication reached 61 percent. The advertising contributed to asuccessful product launch; trial levels for the new cookie reached 80percent within six months.A change in voiceover also made a huge difference for a personal carebrand. Two versions of an ad were tested. Both had the same end frame,but one had a voiceover to support the written message of “developedwith experts,” The takeout of the message was more than twice as highfor the ad with voiceover, 44 percent versus 17 percent, as shown in thechart below.But Voiceovers Don’t Do It AllWhilethefiguresinthetableaboveshowedthat,inrespecttoinformation,ads with voiceovers seem to outperform ads without voiceovers, wemust remember that not all ads are intended primarily to communicateinformation or to be persuasive.The fact is, it is not always appropriate to use a voiceover. If your primarygoal is to entertain people or remind them of your brand, a voiceovermay actually interfere with the achievement of your objective. As shownin the table below, ads without a voiceover are more likely to be enjoyedand more likely to be seen as different to other advertising. Howeverthey are also less likely to be understood. So in deciding how and whento use a voiceover, keep your key objectives in mind.Voiceovers Should Work with the StoryVoiceovers don’t always aid communication, particularly when theycompete with an engaging or compelling story being shown in the ad.An Indian ad was designed to communicate that the brand containedingredients that helped enhance immunity. The commercial showeda husband feigning sickness and his wife catching him in the lie. Avoiceover explained the brand’s benefit, but most viewers seemed tobe focused on the story being told on the screen, because they did notpick up either the voiceover or the message. The ad was modified sothat the wife explained the benefits to her husband as part of the ad’sstory, and the edited version performed substantially better on bothimpact and persuasion.FIGURE 2:When supported by the voiceover, themessage was taken out at much higher levelsFIGURE 1HowShouldVoiceoversBeUsedinAds?Voiceovers are commonly used in ads across the world,and they seem to aid the communication of factualmessages. However, voiceovers are less commonlyassociated with distinctive ads, and continuousvoiceovers can result in lower engagement. Additionally,the manner in which a voiceover ties in with an ad’s visualcontent is critical: When voiceovers and visuals compete,the voiceover message can get lost.TKNOWLEDGEPOINTIndexLink Metric WithvoiceoverGlobal base WithoutvoiceoverGlobalbaseKey MessageCommunication101 13982 98 1565Credible 101 35151 97 3195New Information 101 50643 94 6270Relevant 101 50444 95 6254Persuasive 101 49640 96 6246Prompted communication -“is developed with experts”17%Without v/osupport44%With v/osupportBase: 100FIGURE 3IndexLink Metric Without voiceoverEnjoyment 103Different 104Easy to Understand 97
  • Timing with VisualsThe voiceover needs to complement the visual content of the ad. If itdoesn’t, the message it intends to communicate is unlikely to register.This is the most common problem we have observed with voiceovers.One personal care brand tried in several ads to convey that it was 75percent more efficient, but in none of the executions did the visualcontent support the message, and as a consequence, the message waslost. Ads tend to communicate far more successfully when they bothshow and tell—i.e., when the visuals dramatize what the voiceover issaying. One personal care ad in Indonesia was failing to communicateits intended message. The ad was revised to cut down the voiceover,and to tie the communication of the key “confidence” benefit with arelevant scene. Communication of the “confidence” message improvedfrom 58 percent to 73 percent, and the revised ad was more persuasive.Television tends to be a far more expensive medium than radio—thisis partly due to its wider reach, but it is also because it gets movingimages, accompanied by sound, into people’s homes. You pay morefor those images, which are often the most memorable parts of the ad,so it is crucial that the voiceover and visual content work well together.Less Can Be MoreVoiceovers should be used sparingly. Of the ads in our database thatuse voiceovers, 63 percent use them only during certain parts of thead, or at the end only. Pauses and silences can help add emphasis, andallow time for the message to be absorbed. When we focus on ads thatuse continuous voiceovers, we see that they tend to be less involving(indexing at 99) than ads that have no voiceover or a voiceover at theend only (indexing at 103). It seems that continuous voiceovers canwash over viewers and lull them into inattention.We tend to see issues with continuous voiceovers more often withtranslatedads;whenanadistranslatedintoanotherlanguage,sometimesit takes more words to explain certain concepts (especially when theconcept is one that has special resonance in the ad’s original market). AUK deodorant ad that had performed well in research was subsequentlytranslated into Polish and tested again. In the Polish version, viewersdid not play back the differentiating message; instead, they took outa generic deodorant message about efficacy. As a result, the ad didnot convey its news, and failed to create a sense of differentiation. Acomparison of the audio soundtracks of the two ads showed that thePolish version was sonically “busier.” It provided less aural down time toallow viewers to process the ad’s message.Another ad for a new deodorant scored poorly on all key metrics.Analysis showed the ad had a comprehension problem, with over a thirdof respondents finding it at least somewhat difficult to follow. Since thead was already in a finished film state, the main changes made to thead related only to the voiceover. The English voiceover in the originalad had a French accent. The revised version featured an English accent.But the voiceover was leaner only 69 words, versus 80 in the original.In addition there was a title card, setting up the story from the openingshot. Comprehension improved dramatically with only 9 percent havingcomprehension problems, and the ad’s persuasive strength moved fromlow to high. The subsequent launch was a success.The Voice in the VoiceoverThe voice in the voiceover can make a big difference. One ad, with localtranslations and voices, was tested in the UK, France and Italy. In theUK the ad received a high level of dislikes, which further investigationshowed to be largely due to the voiceover. The voice was regardedas “silly,” and detracted from the key message. However, in Franceand Italy, there were almost no mentions of “silly voices.” In the UK,persuasion was greater among those who did not mention the sillyvoices compared to those who did mention them.Regional accents can often add to enjoyment, especially when theyare used in a playful manner. However, if an accent is too strong, itcan be hard to understand, and this can lead to lower comprehensionand enjoyment for the ad. Also, since people tend to be proud of theiraccents, if the accent is over-exaggerated and clearly not genuine, itcan annoy people from that region.KNOWLEDGEPOINTHowShouldVoiceoversBeUsedinAds?FIGURE 3: A louder pattern for the Polish ad with no real breathing spacePOLISHSoundwave length from audio soundtrackUK
  • Millward Brown experts are available to speak globally. Please contact:Global - Miquet HumphryesMiquet.Humphryes@millwardbrown.comNorth America - Jamie Jonesjamie.jones@millwardbrown.comwww.millwardbrown.comProduced byMiquet Humphryes, Delyth Hughes, Katie Pearce, Dede FitchMillward Brown Global CommunicationsMorgan Bullock, Michael Almon, Mike Agee, Lisa ParenteMillward Brown Global Brand MarketingDominic TwoseMillward Brown Knowledge Management©Millward BrownPerspectives