How communication technologies havechanged consumer behaviour and theimplications for Agencies and BrandsJon WadeHead of D...
How communication technologies havechanged consumer behaviour and theimplications for Agencies and Brands    …     OR how ...
Why, why, why…  1) Why the Internet has changed the PR model  2) Why the Internet has changed the Marketing model  3) Why ...
 	  Why the Internethas changed thePR model
What’s the Internetgot to do with PR?
Let’s start with Traditional PR…what’s thatall about then? In 2 words…        BRAND      REPUTATION
The PR industry aims to increasebrand reputation through interactionswith influencers, promoting advocacy.The advocates in ...
Influencers are people with an audience who can change theiraudience’s opinion about something,  either positively or negat...
If they change their audience’s opinion of abrand in a positive way –we call them advocates.   If they change their audien...
They work for the government.     They work at a newspaper.They work as physicians and advisers.        They are celebriti...
But why do brandscare about this stuff?
Net Promoter – Bain & Co     Q: “How likely are you to recommend this         brand to your friends and family?”         N...
This relationship iswhy PR exists.                       It’s why Weber                   Shandwick’s clients             ...
And life before the Internet                     was good in PR…We got to hang out with journalists andeditors, government...
Our traditional PR model looked likethis…                             Brand               Influencer          Influencer   C...
And then the damnInternet showed up …
The Internet gave anaudience to anyone   who wanted it.
Blog Platforms                 Social                              Networking       Video                   Services     P...
In our digital world we need toredefine our perception ofInfluencers.                    They are still people who can chang...
But they are also David Liu, WeberShandwick’s China GM who has a blog with16m page views per month…                   …ano...
Our influencers have changed, and instead of working with a handful of influencers the PR industry now has to work with MILL...
And now our model looks like this…                                Brand    Influencer    Influencer    Influencer      Cons-I...
The Internet has created a     scale issue in PR.
Our millions of influencers  have created another      problem too.     MEDIAFRAGMENATION
What’s that?      There’s only 24      hours in a day.
We haven’t consumed [much]more media since theInternet showed up.         But there’s [much]  more                   media...
So now in PR we have to work withmany more influencers…                      …And, in general,                they’re not a...
In fact, PR post-Internet now hasthese models as well…                                          ATL         SNS           ...
To excel post-Internet PR agencies need to use techniques that traditionally have          been the expertise of marketing...
Route Video on                                                   YouTube                   Facebook Hub              •  Ov...
However, if PR agencies need to thinkand act like Marketing agencies thenit is also the case that…       …Marketing Agenci...
Here’s an example of aMarketing Agency thinkinglike a PR agency in China…
B2C China Case Study ExampleJohnnie Walker Yulu or Words of a Journey’ CampaignOgilvy Beijing & Y&R Shanghai	  Source: htt...
Brand Line: “Keep Walking”Idea: Tell the stories of 12 Chinese pioneers fromdifferent walks of life - real estatebusinessm...
Launch Event                                        Sina WeiboTV Spot                                                     ...
Why is this happening?
Why the Internet haschanged the Marketingmodel
The Internet has allowedpeople to test the validity of abrand’s claims in marketing.         Within a couple of clicks of ...
The Internet allows people to find out the“truth” before they buy the product…                          …because a few voca...
And brands have been foundwanting…                   The Internet has taken the                     SPIN out of marketingT...
And so people don’t trustMedia & Advertising likethey used to…            They’ve turned to recommendations               ...
They’ve turned to strangerswith a reputation for telling the  truth…crediblebrand        advocates.
And as a result, theInternet has takenthe marketingagency’s toys away.
Creating ADVOCACY amongstinfluencers is the single mostimportant skill in marketingtoday…  So marketing agencies are gettin...
But if that is true then theInternet has broken the media            agency model too…Why?
Because true consumerAdvocacy cannot bebought…      …it has to be earned!
However, agencies working exclusivelyin the earned space don’t have it alltheir own way... 	             Campaigns that re...
The Internet is littered with theremnants of social media campaigns thatfailed to achieve “critical   mass”	              ...
In fact, the most successfuladvocacy-based campaigns in theworld today…      …WOULD NOT HAVE      WORKED…                 ...
This campaign has had so many attemptedcopies but none have really worked becausethe brands and agencies involved missed t...
So the Internet has made itimperative for paid and earnedmedia to work together.	                 But has it caused offline...
Why the Internet hasn’tdiminished the importance ofoffline communications
Despite all this Internet-induced mayhem, the Internethasn’t diminished theimportance of offlinecommunication…             ...
1)  Most highly influential sources are    influential in the real and virtual    worlds – we need to be interacting    with...
To illustrate the points: Mostsignificant online influencers areinfluential offline too… Writers              Business People ...
But there are not so many significant        online-only influencers…  There are some – but I can  only think of a handful  ...
And talking of Whistle Blowers…#superinjunction is generatingfront-page offline headlines in theUK right now on the back of...
Online & Offline integration incampaigns is an imperative         in    our digital world.        At Weber Shandwick we    ...
Why the Internet means agencycollaboration is more importantthan ever
The Reality:              The Internet has blurred the  traditional agency discipline lines…
PR Agencies have to act like MarketingAgencies            Marketing Agencies have to act                           like PR...
It’s a bit of a mess.            It’s really confusing                       for clients.And it hurts margins because it’s...
At Weber Shandwick…                 …we have a programme of active collaboration amongst our sister agencies to find better...
Why the Internet hasprovided brands aresponsibility to change too
Example US Client                               PR                                Marketing                       •  Despi...
Southwest Airlines                    Brand                                                                Interview with ...
Why can’t you remind me ofwhat you’ve been talking aboutfor the past 45 minutes?
Because of the Internet: PR Agencies have to act more like Marketing Agencies.              Marketing Agencies have to act...
Thanks for listening.Jon WadeHead of Digital, APAC – Weber Shandwick+852 9789 8973@digital_apacjwade@webershandwick.com
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Jon Wade - How communication technologies have change consumer behaviour and the implications for Agencies and Brands

  1. 1. How communication technologies havechanged consumer behaviour and theimplications for Agencies and BrandsJon WadeHead of Digital, APAC – Weber Shandwick
  2. 2. How communication technologies havechanged consumer behaviour and theimplications for Agencies and Brands … OR how the Internet has screwed with most things in the comms businessJon WadeHead of Digital, APAC – Weber Shandwick
  3. 3. Why, why, why… 1) Why the Internet has changed the PR model 2) Why the Internet has changed the Marketing model 3) Why the Internet hasn’t diminished the role of offline communications 4) Why the Internet means agency collaboration is more important than ever 5) Why the Internet has provided brands a responsibility to change too 6) Why can’t you remind me of what you’ve been talking about for the past 45 minutes? (I will…)
  4. 4.    Why the Internethas changed thePR model
  5. 5. What’s the Internetgot to do with PR?
  6. 6. Let’s start with Traditional PR…what’s thatall about then? In 2 words… BRAND REPUTATION
  7. 7. The PR industry aims to increasebrand reputation through interactionswith influencers, promoting advocacy.The advocates in turn propagate thebrand’s messages to their audiences.
  8. 8. Influencers are people with an audience who can change theiraudience’s opinion about something, either positively or negatively.
  9. 9. If they change their audience’s opinion of abrand in a positive way –we call them advocates. If they change their audience’s opinion of abrand in a negative way – they’re detractors.
  10. 10. They work for the government. They work at a newspaper.They work as physicians and advisers. They are celebrities.
  11. 11. But why do brandscare about this stuff?
  12. 12. Net Promoter – Bain & Co Q: “How likely are you to recommend this brand to your friends and family?” NPS = % Advocates - % Detractors (0 – 10 scale; 0 – 6 Detractors; 7 – 8 Neutral; 9 – 10 Advocates Reputation Long-term (NPS) Profitability & Growth
  13. 13. This relationship iswhy PR exists. It’s why Weber Shandwick’s clients have jobs.…And it’s why I have a job.
  14. 14. And life before the Internet was good in PR…We got to hang out with journalists andeditors, government officials,physicians and the occasionalcelebrity… …changing their opinions of brands and having them do the same with their audiences.
  15. 15. Our traditional PR model looked likethis… Brand Influencer Influencer Consumer Consumer Consumer Consumer Consumer One - To - Few - To - Many Consumer Consumer Consumer Consumer Consumer Consumer Consumer Consumer Consumer Consumer
  16. 16. And then the damnInternet showed up …
  17. 17. The Internet gave anaudience to anyone who wanted it.
  18. 18. Blog Platforms Social Networking Video Services Platforms Live Streaming RSS Search EnginesInternet technologies provide would-be influencers a ready-made online audience
  19. 19. In our digital world we need toredefine our perception ofInfluencers. They are still people who can change theopinions of their audience about something, either positively or negatively and... …they still work for the government. …they still work at a newspaper.
  20. 20. But they are also David Liu, WeberShandwick’s China GM who has a blog with16m page views per month… …another example, Kevin “Too Fat” Smith, actor/director who enjoys giving airlines bad publicity They are the geeky guy from the IT department who knows a lot about SEO… …in Japan, they are not even human! Gachipin, a children’s TV character is the most followed “person” on Twitter. And in some cases they are members of the public using brand’s trademarks in dubious ways…
  21. 21. Our influencers have changed, and instead of working with a handful of influencers the PR industry now has to work with MILLIONS of them…
  22. 22. And now our model looks like this… Brand Influencer Influencer Influencer Cons-Infl Influencer Influencer Cons-Infl Influencer Cons-Infl Influencer One - To - Many Consumer Influencer Influencer Influencer Consumer Influencer Cons-Inf Influencer Consumer Consumer Consumer Consumer
  23. 23. The Internet has created a scale issue in PR.
  24. 24. Our millions of influencers have created another problem too. MEDIAFRAGMENATION
  25. 25. What’s that? There’s only 24 hours in a day.
  26. 26. We haven’t consumed [much]more media since theInternet showed up. But there’s [much] more media to consume
  27. 27. So now in PR we have to work withmany more influencers… …And, in general, they’re not as influential as they once were……And they’re differentto the types ofinfluencers we’re used todealing with.
  28. 28. In fact, PR post-Internet now hasthese models as well… ATL SNS Brand MarketingConsumer Consumer Consumer Consumer Consumer Brand BTL Micro-blogging Marketing Consumer
  29. 29. To excel post-Internet PR agencies need to use techniques that traditionally have been the expertise of marketing agencies.Going direct to consumer… Talking to millions…Here’s an example from WeberShandwick in Malaysia
  30. 30. Route Video on YouTube Facebook Hub •  Over 1,000 entrants on first day of registration •  Route video still being viewedBlog Posts and has over 12,000 views •  Community was still active on Facebook long after campaign finished and now migrated to later Marathon communities Q&A, Runner of the Week, Twitter & FB Training Clinics, Photos of runs Synched Media Coverage
  31. 31. However, if PR agencies need to thinkand act like Marketing agencies thenit is also the case that… …Marketing Agencies now have to think and act like PR Agencies.
  32. 32. Here’s an example of aMarketing Agency thinkinglike a PR agency in China…
  33. 33. B2C China Case Study ExampleJohnnie Walker Yulu or Words of a Journey’ CampaignOgilvy Beijing & Y&R Shanghai  Source: http://www.campaignasia.com/Article/244429,johnnie-walker-launches-12-film-brand-campaign-featuring-chinese-pioneers.aspx
  34. 34. Brand Line: “Keep Walking”Idea: Tell the stories of 12 Chinese pioneers fromdifferent walks of life - real estatebusinessman, artist, fashion designer andblogger - against the backdrop of modernChina
  35. 35. Launch Event Sina WeiboTV Spot Douban Page Tudou Channel HanHan - KOL Sina Blog
  36. 36. Why is this happening?
  37. 37. Why the Internet haschanged the Marketingmodel
  38. 38. The Internet has allowedpeople to test the validity of abrand’s claims in marketing. Within a couple of clicks of Baidu / Google you can find out whether this washing powder really does get your whites whiter.
  39. 39. The Internet allows people to find out the“truth” before they buy the product… …because a few vocal people (mavens) who have bought it already will tell them whether it’s any good. …read this book if you want to find out more about this
  40. 40. And brands have been foundwanting… The Internet has taken the SPIN out of marketingThe Internet has caused people to beskeptical of marketing messages becausethey can find out the “truth” online…
  41. 41. And so people don’t trustMedia & Advertising likethey used to… They’ve turned to recommendations from people they trust like their families… They’ve turned to recommendations from their friends and colleagues within their social graph
  42. 42. They’ve turned to strangerswith a reputation for telling the truth…crediblebrand advocates.
  43. 43. And as a result, theInternet has takenthe marketingagency’s toys away.
  44. 44. Creating ADVOCACY amongstinfluencers is the single mostimportant skill in marketingtoday… So marketing agencies are getting into the PR game – they’re developing advocacy models in their campaigns like the Johnnie Walker example we saw earlier.
  45. 45. But if that is true then theInternet has broken the media agency model too…Why?
  46. 46. Because true consumerAdvocacy cannot bebought… …it has to be earned!
  47. 47. However, agencies working exclusivelyin the earned space don’t have it alltheir own way...   Campaigns that rely solely on earned media often struggle to obtain the reach required to really kick them off…  If we want large volumes of consumersto engage and drive advocacy throughWOM, they need to be made aware of thecampaign in the first place.  
  48. 48. The Internet is littered with theremnants of social media campaigns thatfailed to achieve “critical mass”   This I believe is the most common mistake we see in online advocacy development campaigns today   The reason: MEDIA FRAGMENATION & SCALE ISSUES (again)  
  49. 49. In fact, the most successfuladvocacy-based campaigns in theworld today… …WOULD NOT HAVE WORKED… …without leveraging earned and paid media. Have a look at this. …pay special attention to the paid media that made this campaign such a success.
  50. 50. This campaign has had so many attemptedcopies but none have really worked becausethe brands and agencies involved missed thefundamental spark of genius that kickedthis campaign off…   …the classified ad buys.  
  51. 51. So the Internet has made itimperative for paid and earnedmedia to work together.   But has it caused offline communications to become less important?  As a digital advocate, I wouldargue that offline is as important asit ever was.  
  52. 52. Why the Internet hasn’tdiminished the importance ofoffline communications
  53. 53. Despite all this Internet-induced mayhem, the Internethasn’t diminished theimportance of offlinecommunication… Why?
  54. 54. 1)  Most highly influential sources are influential in the real and virtual worlds – we need to be interacting with them in both to maximise advocacy.2)  Online hype is increasingly covered offline and offline stories create most online conversations.
  55. 55. To illustrate the points: Mostsignificant online influencers areinfluential offline too… Writers Business People Pop Stars PoliticiansActors / Actresses News Organisations
  56. 56. But there are not so many significant online-only influencers… There are some – but I can only think of a handful For some reason, Perez Hilton & Julian Assange always spring to my mind!
  57. 57. And talking of Whistle Blowers…#superinjunction is generatingfront-page offline headlines in theUK right now on the back of onlinerevelations… Whilst a recent paper by HP’s research division found that 70% of trending topic on Twitter originated from traditional news sources
  58. 58. Online & Offline integration incampaigns is an imperative in our digital world. At Weber Shandwick we call that Inline communications.
  59. 59. Why the Internet means agencycollaboration is more importantthan ever
  60. 60. The Reality: The Internet has blurred the traditional agency discipline lines…
  61. 61. PR Agencies have to act like MarketingAgencies Marketing Agencies have to act like PR AgenciesMedia Agencies can’t buy consumer advocacybut you struggle to launch a successful onlineadvocacy development campaign without paidmedia Digital Agencies need to offer offline capabilities and Offline Agencies need to bring digital capabilities to the table
  62. 62. It’s a bit of a mess. It’s really confusing for clients.And it hurts margins because it’sinefficient to constantly re-inventyourself and win business against evermore numerous competitors.
  63. 63. At Weber Shandwick… …we have a programme of active collaboration amongst our sister agencies to find better ways of working together to get the most successful campaigns away for our clients.But it is not just agencies that need tobetter integrate in the post-Internetworld…
  64. 64. Why the Internet hasprovided brands aresponsibility to change too
  65. 65. Example US Client PR Marketing •  Despite great strides there is still little or no co-ordination ATL WS between client departments Agency•  •  & Social Media Strategy Agencies act as liaison points Campaign Management •  Marketing communications strategy•  Crisis and Issues •  No editorial / governance board / BTL concepting •  ATL Management•  Online Community established Groupon •  Media buying •  Digital display production Service •  Tactical rather than strategic Management & Customer Boutique Boutique•  Social Monitoring & approach to social Response •  Online sales promotion•  Social Platform & Video Sales •  Tactical online campaigns Production
  66. 66. Southwest Airlines Brand Interview with Christie McNeil – Spokesperson for Southwest PR Marketing Airllines (6:43) Emerging Media Team http://www.youtube.com/watch?v=Wr1Wi9YnYEk + Social Agency Customer Sales Service Initially started with a 2 person team, growing to a 7 person emerging media teams. http://www.huffingtonpost.com/paula-berg/revolutionizing-corporate_b_603183.html
  67. 67. Why can’t you remind me ofwhat you’ve been talking aboutfor the past 45 minutes?
  68. 68. Because of the Internet: PR Agencies have to act more like Marketing Agencies. Marketing Agencies have to act more like PR Agencies.Media Agencies can’t buy true consumer advocacy but you struggleto launch a successful online advocacy development campaignwithout paid media. Digital Agencies need to offer offline capabilities and Traditional Offline Agencies need to bring digital capabilities to the table.Collaboration between different agencydisciplines is more vital than ever to truly deliverclient value. Brands have a responsibility to change too, breaking down long established silos to embrace communications post-Internet.
  69. 69. Thanks for listening.Jon WadeHead of Digital, APAC – Weber Shandwick+852 9789 8973@digital_apacjwade@webershandwick.com
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