TEN X TEN 2012

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Mindshare Ireland outlines the changing media landscape and consumer behaviour which is driving key marketing trends in 2012.

This is the most comprehensive guide to how brands should operate in 2012 to engage with consumers.

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TEN X TEN 2012

  1. 1. TEN X TEN 100 POINTS YOU NEED TO KNOW ABOUT CONSUMERS AND MEDIA IN 2012 DECEMBER 2011!
  2. 2. M 10 x 10 B R A N D M E : S E L L I N G Y O U R I M A G E O N L I N E | G E N E R AT I O N U N C E R TA I N T Y : G R O W I N G A N X I E T Y | M A K E ʻ E M L A U G H : G I V E C O N S U M E R S S O M E F U N | D I Y: S AV I N G M O N E Y B Y D O I N G I T Y O U R S E L F | T W O - P O I N T - F O U R C H I L D R E N : C H A N G I N G FA M I L I E S | B A C K T O R E A L I T Y : T H E I M P O R TA N C E O F FA M I LY | V A L U E V I G I L A N T : P R I C E C O N S C I O U S C O N S U M E R | S E G M E N T I N G T H E S E G M E N T : F O C U S O N 5 0 S | R E TA I L I D E N T I T Y CRISIS: SHOPS IN DIFFERENT PLACES | INCONSPICUOUS CONSUMPTION: LESS IS MORE | SOLOMO (SOCIAL, LOCAL & MOBILE) G U A R A N T E E D P R E D I C T I O N F O R 2 0 1 2 – M O R E J A R G O N ! | T H E C O N S U M E R I S A H E A D O F T H E G A M E | M O B I L E W I L L O U T PA C E D E S K T O P S I N 2 0 1 2 | P U T T H O S E S C I S S O R S D O W N ! S I M P LY R E - S I Z I N G Y O U R B A N N E R A D F O R M O B I L E I S N O T G O I N G T O W O R K T O D AY | T I M E S P E N T MINUTES SPENT WITH MOBILE WILL GROW BY 12% | DONʼT THROW THE BABY OUT DONʼT FORGET KILLER MOBILE APP - SMS | SECRET G U I LT Y P L E A S U R E S T H E M O B I L E S C R E E N I S A P R I VAT E S PA C E W H I C H C R E AT I V E N E E D S T O C O N S I D E R C A R E F U L LY | A LWAY S O N E A C H D AY , 34% OF USERS SURF THE WEB ON THEIR SMART PHONE WHEN THEREʼS A PC NEARBY | FOLLOWING THE CLICK IMPROVED AD-SERVING WILL ENABLE US TO MEASURE ROI BY CHANNEL POST THE STORE WALLS. | HANDSET WARS 28% OF SMARTPHONES ARE APPLE, BUT ANDROID IS I N C R E A S I N G LY D O M I N A N T P L AY E R | T H E M O B I L E J U K E B O X O V E R 5 0 0 M I L L I O N V I E W S G E N E R AT E D P E R D AY O N Y O U T U B E . C O M V I A M O B I L E D E V I C E S | F O C U S O N R E S U LT S - E V E N M O R E A C C O U N TA B I L I T Y | G R E AT E R U S E O F R I C H M E D I A | F U R T H E R U S E O F G O O G L E L O C A L S E A R C H ( M A P S ) | C R O S S M E D I A P L A N N I N G - F U L L I N T E G R AT I O N | I N C R E A S E D S E A R C H E N G I N E O P T I M I S AT I O N | M O B I L E S E A R C H : M O B I L E I S TA K I N G O V E R | C O N T E N T PA R T N E R S H I P S | Y O U T U B E T R U E V I E W : T E S T Y O U R T V C R E AT I V E | O P T I M I S E D S I T E S F O R D I F F E R E N T D E V I C E S | G O O G L E + Y O U R S E A R C H G E T S S O C I A L | T H E L A U N C H O F G O O G L E + | T H E U N O F F I C I A L T W E E T T H AT E N D E D S E A N G A L L A G H E R ʼ S B I D F O R T H E P R E S I D E N C Y | V I D E O O F M U R M U R AT I O N O F S WA L L O W S O N L O U G H D E R G R E C E I V E S 6 . 6 M V I E W S I N O N E M O N T H | FA C E B O O K O V E R H A U L S T H E P R O F I L E PA G E | C O M M U N I T I E S U S E # R I O T C L E A N U P T O TA K E B A C K T H E I R S T R E E T S A F T E R L O N D O N R I O T S | L I V E U N I N T E N T I O N A L TWEETING OF O SAMA ʼ S RAID | YOUTUBE REDESIGN P U T S F O C U S O N P R O F E S S I O N A L L Y P R O D U C E D C O N T E N T CHANNELS | IDA ANNOUNCE T W I T T E R TWITTER LAUNCHES BRAND T O S E T U P . WWW MINDSHARE IE . EUROPEAN HEAD OFFICE | PA G E S | @ P L A N E T J E D WA R D R E A C H 4 6 6 , 0 0 0 FOLLOWERS ON TWITTER - S ʼ UP J EDWARD | M ORE P E O P L E WAT C H E D T H E L AT E L ATE T OY S HOW ( 1 . 5 M ) ADDRESS (1.2M) | 664,000 . BLOG MINDSHARE IE . T H A N E N D A ʼ S N AT I O N T U N E D I N T O WAT C H O B A M A B U T M O R E WAT C H E D T H E QUEENʼS HISTORICAL VISIT ( 7 1 0 , 0 0 0 ) | R T E P L AY E R H A D A N AV E R A G E O F 2 . 5 M S T R E A M S P E R M O N T H , 7 0 0 , 0 0 0 | S K Y G O @M INDSHARE RL I 3 P L AY E R A N D 4 0 D A R E AT L A U N C H E D I N 2 0 11 , B U T F R O M 2 0 1 2 W I L L B E AVA I L A B L E TO A D V E RT I S E ON | T WITTER HASHTAG USAGE HAS INCREASED ON T V - S U C H A S V I N C E N T B R O W N A N D R T E ʼ S F R O N T L I N E | 2 4 T H O C T O B E R 2 0 1 2 I S T H E D AT E T O R E M E M B E R F O R T H E D I G I TA L S W I T C H O V E R | 1 , 0 3 2 , 0 4 6 T V A D V E R T S B O U G H T B Y G R O U P M . | 3 0 % O F A L L S P O T S O N I R I S H T V I N 2 0 11 | I N 2 0 1 2 N E W C H A N N E L S T O B E O P T E D O U T S K Y L I V I N G + 1 , A T T H E R A C E S A N D S K Y T W O | R T E T V 5 0 T H A N N I V E R S A R Y | T H E L A R G E S T T V V I E W E R S H I P W I L L B E T H E I R E V S S PA I N I N T H E E U R O S - U N L E S S W E G E T T O T H E F I N A L | 8 4 % O F I R I S H P E O P L E L I S T E N T O R A D I O E V E R Y D AY | 1 6 4 , 0 0 0 R A D I O L I S T E N E R S H AV E B O U G H T G O O D S / S E R V I C E S O N L I N E I N T H E L A S T 7 D AY S | 2 9 8 , 0 0 0 L I S T E N E R S H AV E PA I D B I L L S O N L I N E I N T H E L A S T 7 D AY S | 7 % O F L I S T E N E R S H AV E S T R E A M E D A N I R I S H R A D I O S TAT I O N O N L I N E I N T H E L A S T W E E K | 7 % H AV E L I S T E N E D T O A PODCAST /ARCHIVE ON A RADIO SITE | 36% OF LISTENERS OWN THEIR HOUSE OUTRIGHT | 78% OF RADIO LISTENERS B U Y I R I S H W H E N P O S S I B L E | 6 4 % H AV E B R O A D B A N D ACCESS | 63% DO NOT SWITCH OVER/OFF WHEN THE ADS COME ON | 1.3 MILLION LISTENERS GO TO THE PUB ON A W E E K LY B A S I S | H E I N E K E N C U P S P E C I A L S AT T H E A I R P O R T | LYNX 3D ʻANGELS WILL FALLʼ 3D SPECIALS | HEINEKEN 3D BRANDED RUGBY GOALPOST 48 SHEET SPECIALS | P H I L A D E L P H I A C H E E S E I N T E R A C T I V E B U S S H E LT E R S | AERO CARAMEL PURCHASE POINT DISPENSERS | 3 MOBILE ʻ A L L Y O U C A N E AT D ATA ʼ C O N T R A V I S I O N S P E C I A L | NESTLEʼS SOUR PASTILLES MIRRORED 6 SHEETS | HEINEKEN MUSIC GREEN SPHERES EL SPECIALS | E M I R AT E S F U L LY - W R A P P E D D A R T | S U R E M E N D E O D O R A N T METROGLO ON METROPOLES & DURATRANS ON C I T Y L I G H T S | C O M M E N TA R Y A N D A N A LY S I S O V E R H A R D A N D B R E A K I N G N E W S | W E E K E N D PA P E R W I L L H O L D G R E AT E R S H A R E | I N C R E A S E D I N T E G R AT I O N O F C R O S S - P L AT F O R M O P P O R T U N I T I E S A S P U B L I S H E R S P O S I T I O N T H E M S E LV E S A S OVERALL CONTENT PROVIDERS | INCREASED US OF D I G I TA L C O N T E N T P L AT F O R M S . E . G . G U A R D I A N F A C E B O O K A P P | G R E AT E R U S E O F E D I T O R I A L T E A M S F O R ADVERTISING OPPORTUNITIES | FURTHER DEVELOPMENT O F N E W S A N D E N T E R TA I N M E N T W E B S I T E S | M O R E R E A D E R VA L U E - O F F E R S , L O YA LT Y I N C E N T I V E S | C O N S O L I D AT I O N O F O W N E R S H I P , E S P E C I A L LY I N L O C A L T I T L E S | M O R E R E G I O N A L PA P E R S G O I N G C O M PA C T TO F I T I N W I T H R E A D E R S L I F E S T Y L E | I N C R E A S E D AVA I L A B I L I T Y O F N E W S PA P E R A P P S | T H E D A R K K N I G H T R I S E S | T H E TWILIGHT SAGA BREAKING DAWN II | THE HUNGER GAMES | T H E G R E AT G AT S B Y | S N O W W H I T E A N D T H E H U N T S M E N | T H E H O B B I T A N U N E X P E C T E D J O U R N E Y | T H E D I C TAT O R | W H AT T O E X P E C T W H E N Y O U ʼ R E E X P E C T I N G | T H E I R O N L A D Y | R E D D AW N | R E TA I L 1 3 5 | E N T E R TA I N M E N T & T H E M E D I A 9 4 | T E L E C O M M S 5 7 | F O O D 5 5 | F I N A N C E 5 1 | D R I N K 4 1 | G O V E R N M E N T / S O C I A L 4 0 | T R AV E L & T R A N S P O R T 3 8 | C O S M E T I C S & T O I L E T R I E S 3 4 | M O T O R S 3 1 ! !
  3. 3. M 10 x 10 Dear colleagues, The most overused but yet the most appropriate word to describe 2011 has been ‘challenging’. Along with the rest of our industry we have certainly felt the pressures and we have had to work very hard just to ensure that the business does not go backwards. However, at the close of 2011 we can look back and say with confidence that it’s been a strong year for Mindshare. Our business has progressed and I’m very proud to be able to say that our offering now is far stronger than it was at the start of the year. Our approach has been to continue to get closer to our clients and to understand the growing pressures they are under in order to deliver exactly what they need from their media partner. Indeed, a big part of this is being a lot more than just a media partner, moving far beyond our traditional remit and offering real, measurable business solutions to the challenges they face. Whilst our business continues to change in shape and in focus, it’s very important that we continue to deliver excellence in our main business of media planning and buying. Our continued investment in this area, particularly in resource and systems has helped keep us ahead of the competition. Our Digital Conference which took place back in early February was a huge success and was oversubscribed in terms of very high quality attendees. Among other things, we gave everybody a unique insight into Smartphone penetration and usage and gained some very valuable insights which have helped drive our business forward. A very big highlight of our year was winning the highly contested title of ‘Media Agency of the Year’ at the inaugural media awards at the end of March. This showcased the excellent year that we had in 2010 and the superior quality and effectiveness of the work that we produced. In addition to winning ‘ Media Agency of the Year’, Mindshare also won two awards including the Grand Prix for the Bord Gáis Energy ‘Big Switch’ campaign and one for Best Sales Initiative for Ford Fiesta. Consumer Insight has continued to power our business and our partnership with SpongeIt has helped keep us at the forefront of this area. We also have some unique and brand new technology to roll out in early 2012 which will further enhance our Consumer Insight positioning. Our integrated approach to Digital, which we have had in place for over three years, is now really proving to be a key advantage as many multi platform media owners are now moving to trading their inventory in the way that we have been buying it. We are significantly ahead of our competition in terms of structure, resource and experience in this area and this will deliver even more benefits as we move into 2012. Trading continues to grow in importance and our most significant hiring of the year has been the appointment of Neil Johnston as Head of Trading. Neil joined us from OMD UK where he was Head of Buying for the past nine years. In particular, Neil brings a level of experience and expertise in cross platform trading that simply does not exist elsewhere in Ireland. The most easily measurable testament to the strength of our offering is our client list of which I am most proud. It’s both the breadth and depth of this that speaks volumes about the health of our business. Thank you very much for your business and your support throughout 2011 and we look forward to a mutually prosperous 2012. Bill Kinlay bill.kinlay@mindshareworld.com!
  4. 4. M 10 x 10 But is it for less, less, less? Thankfully the definition of value is not solely monetary. Yes, consumers have less money to spend, but this doesn’t always mean that the cheapest products win outright. Service value is still equally important; those other touches that make paying the money worthwhile. Businesses that continue to deliver what the consumer perceives as value will survive. Interpreting that value definition and delivering the right proposition is the key. It means thinking cleverly, investing smartly and knowing your customer. How has this value requirement changed the market dynamic and what can those of us in marketing services, across brands – agencies – media, do in 2012 to deliver on it? MORE KNOWLEDGE Data: it’s the new oil. We have lots of it: unlike oil. MORE,MORE,MORE Knowing what to do with data and how to interpret it is the difficult bit, but it is from this data that brands will begin to understand the dynamics of their Increasing our offering How do you like it, how do you like it More, more, more customer relationships. As a business, Mindshare is able to better understand consumers’ rapidly Managing Director, Emma O’Doherty How do you like it, how do you like it changing relationship with media via our own acknowledges the increased pressure on Ooh, how do you like my love research service (through partners SpongeIt). This has business, but puts value on long term thinking to ensure future growth. allowed us to use client’s existing data, identify gaps If ever a lyric had to define the changed relationship and deliver bespoke communications solutions. of consumer-brand-agency then this old Andrea True Media channels are adding to, or improving. their song (1970’s disco classic) seems to be the perfect value added research (e.g. the radio industry’s fit! RadioGAUGE). Businesses should also be tracking We all want more. Consumers want more value from consumer sentiment in real time, along with sales brands, brands want more value from their marketing and using this data to further develop the brand, or investment, agencies want more value from the the use of communications. Marrying all three data media channels and the channels want more sources together - brand KPIs/equity, sales data and customers to add value to their proposition. More, media interaction – will provide rich outputs for more, more value. business development.
  5. 5. M 10 x 10MORE LONG-TERM PLANNING smartphone penetration will increase further, giving work the market hard and deliver the most effectiveThe reality for many brands in Ireland is delivering us all even more reason to put mobile at the centre of media buying for our clients. The talent we have in our communications planning, as well as a route to Mindshare is outstanding, and we hope that every daysales now. But if history has taught us anything, it’s sale. Mobile is changing how businesses sell, how in 2012 will see us adding more value to our clients’that a continued focus on reactive marketing andshort-term sales technics takes its toll on brands in consumers engage and how those of us in businesses.the long-term. Marketing and sales people become communications can marry both of these together. It MORE RECOGNITION FOR POSITIVE CONTRIBUTIONswamped by the now, with no head room for the is important to remember that the pervasiveness of mobile means that what was once defined quite And this leads me to a final thought that wouldfuture planning. This equally applies to development neatly as the ‘store’, has opened up shopping enable us all to ensure the future of our talent pools:of media strategy – where turning around short-term opportunities anytime, anywhere. For media recognition of the positive contribution that we, theactivity has to take precedence over long-term brand channels, the need to be relevant to, and keep pace marketing industry, make to businesses; andcommunications. We have to find a new balance with consumers, has meant investing in mobile – merchandising it both within our own organisationbetween driving sales spikes versus implementing from online news & entertainment sources, apps and and within the industry.strategies or new business models for longer-term interactive display units to the latest in connective In Mindshare, return on investment and measurabilitysuccess. media routes from QR codes to Blippar to iTagged. of activity is fundamental. The biggest singleMORE REWARDS FOR LOYALTY Expect more in 2012. difference in recent years is the interactive nature ofThe short-term selling focus has seen deal marketing digital and how it allows us to measure the impact of MORE FOCUS ON TALENTboom in 2011 and it shows no sign of abating. activity, click-through rates, cost per lead or customer‘Dealing’ is no longer owned by FMCGs; we see We all need good sales people, those who can build acquired. Our ambition, as ever, is to work withfinancial, telecoms and entertainment services customer relationships, merchandise brand benefits clients to demonstrate effects on businessemploying more retail tactics than ever before. And and get a sale over the line. Brands need marketers performance, be it share, generalised profit or margin that can navigate the current market whilst stillthis is happening not only in brand-consumer uplifts. keeping an eye on the road ahead to ensure long-interactions, but also media supplier-agency dealings.The difficulty for most businesses is whether short- term success. In Mindshare, our role continues to beterm offers can lead to long-term loyalty and base to develop consumer insight from data, deliver long- More, more, more. That’s how we like it.customer or revenue growth. The evidence so far is term thinking, adapt to new communications models, emma.o’doherty@mindshareworld.comthat they don’t. How many of us have gone back to Brands needthat salon for another fish pedicure? Yes they doencourage trial, but it’s the experience and theaftercare that keeps customers: the Service Value. marketers that can navigate the currentOur focus should be on investing in loyalty-buildingand repeat purchase mechanisms rather than fundingwhat can become very expensive short-term market whilst still keeping an eye on theincentives. Reward the loyal customer as opposed tothe one-off purchaser.MORE MOBILE road ahead to ensureMobile - our internet, our camera, our alarm, ourencyclopaedia, our TV and soon to become our long-term successwallet! With another gifting season passing,
  6. 6. M 10 x 10 flickr: The Jordan Collective We have the target audience that many advertisers are chasing, and we’re still married to brands (we buy more branded goods than most of Europe). That’s the good bit. The bad bit comes when you consider that we are well into our fourth year of recession and we’ve just had our fifth austerity budget. Even with the success in export-led growth that we have had in the last year, nearly every kind of demand is depressed. So demand is down, consumers don’t have any money, and we’re running out of vital supplies – BIRTHS,MARRIAGES&DEATHS right? Wrong! We have a fantastic resource of media and marketing Responding to Change Last year in Ireland we filled nearly all of a capacity Croke Park with new births, and lost just over the people here in Ireland, constantly looking for new Mark James, Planning Director, reflects on equivalent of a Thomond Park in deaths. ways to target and attract consumers. our changing demographics, and how in 2012, Mindshare is equipped to respond to We had the lowest death rate in Europe, and on the We’re not experiencing the death of Irish marketing; changing consumer demands.. baby-making front our performance was an we’re just experiencing the birth of a new kind of unparalleled, top-of-the-tree European success with marketing and communications. It’s a tough 16.8 births per thousand compared to a rather feeble environment, and we can’t be complacent, but there 7.9 in Germany. are plenty of opportunities out there. While this suggests some significant differences Through strong negotiation, Mindshare continues to between us and our German counterparts, the reality secure the most competitive media pricing in the Irish is more simple – the last real baby boom came after market for our clients. This is the competitive the visit of Pope John Paul II, and now the babies of advantage that we spend every day reinforcing and then are having the babies of now. The Pope’s extending. Really strong media buying. Children’s Children. The other part of what we do is working hard to All of which means our demographics are good – they further develop the spirit of cooperation and are a ‘nice shape’. We’re producing enough children enterprise that we have with media owners. to sustain the population (even accounting for growing emigration), and we have plenty of (potentially) economically active family stage 25-44 year olds – a good engine for any economy.
  7. 7. M 10 x 10VALUE OF STRONG RELATIONSHIPS We believe in investing in Planning, even when timesBecause strong, flexible and intelligent relationships are as tough as they are now.are key to providing new, innovative and business- Media life, like ordinary life, is made up of Births,generating solutions for our clients, the people who Marriages and Deaths. And we’re here to help ourpay our bills, excellent relationships with our clients, Clients navigate these major events and the potentialas well as with media owners, are key. effect upon their brands.The most important relationship, though, is with So who, or what, are some of the things in media thatconsumers. This, if you like, is the marriage bit. The we said hello to for the first time in 2011.What did webit that needs planning! say goodbye to for the last time? What did weWe need to consolidate and build upon our celebrate the joining together of?relationship with consumers, as well as find new We said goodbye to Star on Sunday, The Sundayreasons to create or maintain those relationships Tribune and the News of the World – none of this good for newspapers, journalism, plurality ofToday’s Irish consumers are clearly cautious, but they We provide access to services, insights and tools that opinion, or consumer marketing.do have money. The savings rate in Ireland is a veryhigh 14% and when consumers see a are not available in any other ‘media agency’. We also said goodbye to the baffling Google Buzz,deal even for discretionary items, then they will Whether it’s our Sponge It research programme and hello to a raft of new Google products includingspend – witness the success of newly launched group measuring the mood of Irish consumers; Buzz Google+, a first real attempt at social networking.buying sites like The Irish Times’ Rewarding Times; monitoring which listens to and interprets what consumers are talking about and sharing online; We really understood, for the first time, the power ofwith deals on golf, wine, weekends away, musicals Millward Brown’s new BrandZ work in the Irish social networking with the uprisings of the ‘Araband meals-out selling in thousands. 2011 was also market; return-on-investment research; or our unique Spring’.the year that saw BMW producing and airing its firstever Irish TV commercial. Storytelling planning process, which we are beginning We celebrated 10 years of the iPod and saw the death to roll out amongst clients. of its father, and marketing genius, Steve Jobs.Now more than ever, consumers need real reasons oroccasions to spend and providing more of these, and We said goodbye to the typewriter when the lastunderstanding consumers is what media planning company to manufacture typewriters stopped makingstands for at Mindshare. The DNA of our planning is them in India, and we saw the real birth of tabletto do it really cost-effectively, cost-efficiently, and in a We have conducted devices, like the iPad, with mass consumer adoption. 22 research andunique way that nobody else can. These tablet devices offer the first genuine opportunity for press media owners to marry theirIn the last year, while saving our clients over €100min media savings, we have conducted 22 research and insights projects journalistic product with digital in a way that informed by consumers can really engage with.insights projects informed by speaking to over 7,000consumers helping us to inform media strategies of speaking to over And every day in Mindshare, we said hello to the birth15 Mindshare clients. of new media ideas to help build our clients’Unlike our competitors, every one of our Planners isdigitally literate. 7,000 consumers businesses. mark.james@mindshareworld.coml
  8. 8. M 10 x 10 Whilst making market predictions for 2012 is tough, particularly still with a Euro crisis happening, we do believe that 2011 is the bottom of the media market. We believe that Ireland’s qualification for the Euro 2012 championships and our proximity to the London Olympics will provide a fillip for the advertising economy starting at Easter, and that the final quarter of 2012 must show growth after four straight years of falls, and what should be a more robust economic environment by the end of 2012. We predict that advertising revenue will rise between 3% and 5% in 2012. Online will see the largest growth, with TV showing a significant recovery, the Euros and Olympics being primarily TV events. Radio and Out-of-Home should see small growth, again as a piggy back to Euro and Olympic campaigns and MANAGINGTHETRADE spending in the run up to Christmas 2012. Print may grow, but only marginally, and only if retail support the aforementioned events. Keeping a watchful eye MEDIA ECONOMY 2011 saw a further contraction of advertiser demand Neil Johnston, Head of the Exchange, in Ireland. The overall advertising economy has seen discusses the key trading areas which will be managed by Mindshare in 2012 expenditure fall in the region of 10%. Only client’s Online expenditure saw growth, in the region of 20% for display and search combined, which is a slowing from the 30% growth seen in 2010. TV revenue looks like it has fallen by 8%, with the major contraction happening in the final quarter. Print, Radio and Out- Of-Home all saw falls of between 10% and 15%.
  9. 9. M 10 x 10MAXIMISING VALUE IN THE MARKET Outside of television there is still an oversupply in theThe major media “event” of 2011 has been in the Irish media marketplace, and this will force us to recommend to our clients only the strongesttelevision arena. RTE deciding to pull back from share suppliers, that offer the best value and that can buildtrading from mid-2012, in the face of a three yearCompetition Authority enquiry, means that in We will recommend long-term, mutually beneficial, businessmid-2012 the TV trading rulebook changes. Whether to our clients only the relationships. Whilst advertiser budgets will rise in 2012, it will not be by much in most media, so the strongest suppliers,the changing of the rules affects the structure of the same pressures as the last few years are faced by allmarket remains to be seen (remedies to be put inplace by the Competition Authority to govern RTE TV that offer the best media owners in Ireland. Again Mindshare’s trading value and that cantrading are yet to be published), but we at Group M, will look to utilise our volume to force aside bullishas Ireland’s largest media trading group, see this as media owner yield policies. A slight recovery in thean opportunity, not only to play by different rules – if build long-term, media economy does not afford ambitious media owners the opportunity to push up the rates for ourwe want to – but to create value for our clientsthrough new and different ways of transacting.   We mutually beneficial, clients.are excited about possible change in the TV businessmarketplace, but will not be forced into any herdmentality when it comes to transacting on our clients relationshipsbehalf for 2012 and beyond.There has already been a move to cross-mediatrading at some suppliers and in 2012 we see thisphenomenon growing. Unlike cross-media tradingcurrently, where it tends to happen at smallersuppliers, in 2012 it will happen at our largest. Again2012 should see changes at RTE and we are aware ofother large suppliers that are bringing Online salesback in house. This allows us to utilise our significant Lastly, over the past couple of years the contractionvolumes to create value across media, whilst at the in advertiser demand has cut the long tail ofsame time refusing conditional trades – something suppliers and this trend will continue, particularly inwe believe that other media buyers may not be able the Online arena.to resist. Media deals that create value for our clients by allowing them to connect with engaged audiences, on which ever platform that media owner owns, to produce tangible returns on media investment are what we require from all the media owners that we support. This will be more important in 2012 than ever before. neil.johnston@mindshareworld.com
  10. 10. M 10 x 10 flickr: Travis Isaacs MEDIA BUYING 3.0 2011 saw direct response really proving its value, with advertisers across a large number of sectors investing heavily in ad-networks and targeting, based on embryonic user profiles. In last year’s TEN X TEN we mentioned demand side platforms (DSPs) being the next stage for DR display, but they didn’t really take off – in 2012, we believe they will. With a number of suppliers, both local and international, now targeting Ireland, it seems natural that clients will start assigning test budgets and, most likely, see the same impressive results already common in other markets when media can be bought at an impression level, in an auction model, with holistic, whole-web management of inventory. However, this increased interest comes at the same time as the regulations around data are tightening up. IRELANDISCONNECTED WITH GREAT POWER… The EU’s new data regulations, or Cookie Laws, came into effect in Ireland in July 2011, but many people still don’t understand what they mean, including, Digital at the core of planning The future’s already some might argue, the politicians who enacted them. But what is clear is that the unwritten agreement Our Head of Digital, Ciarán Norris, takes a here, it’s just not between publishers and consumers - that the latter’s evenly distributed look at key areas which will have a major impact on digital marketing in 2011. attention & data would be sold by the former in return for access to their content - is under threat. Whilst the Irish Data Protection Commissioner (DPC) William Gibson, 1993 has vowed to take a pragmatic approach, Irish The past 20 years have seen digital technologies businesses have to start thinking about what the disrupt countless industries, including marketing. But regulations mean for them. It also might mean that we think 2012 will be a bit like the calm after the using DSPs, or even Facebook’s Like button, will be storm; more evolutionary than revolutionary. That things that require explicit consumer consent. said, it’s still likely to be an eventful year, so what will the big stories be and what will that mean for marketers?
  11. 11. M 10 x 10 flickr: ssoosay VALUING VIDEO MOBILE WINS, LOCATION LOSES 2011 was the year when Video on Demand (VoD) 2012 won’t be the year of mobile; we’re well past that really took off in Ireland: RTE improved its offering in point. The majority of phones in Ireland are now of terms of the content, available whilst TV3’s platform the smart variety, with most of them on Android. was given a massive redesign. This has seen What will be more interesting are the ongoing tablet advertisers flock to the digital players, although the wars, with the possibility of Amazon’s cut-price growth in views hasn’t met our predictions, probably Kindle Fire being released and driving mass-adoption. None of the web down to a ceiling in terms of the content available and the limitations of broadband speeds outside the giants are safe main urban areas. 2012 will see new, predominantly large, international players, enter the market: BBC’s iPlayer will beINTERNET GIANT KILLERS available across multiple devices, whilst Netflix isGoogle currently faces a battle on two fronts: stock likely to have a big impact. This will force suppliers tomarkets who seem to have grown immune to provide real, concrete data and evidence on theGoogle’s charms (despite consistent growth in efficacy of VoD as an advertising medium in the Irish Location, the poster child of mobile, looks lessrevenue and profit, its stock market value is almost market. healthy: foursquare has tripled its users this year, butidentical to this time last year). This is reflected in the VHS OR BETAMAX still sits at ‘just’ 15 million users worldwide; its mainhuge number of tweaks Google has made to its competitor Gowalla admitted defeat and sold up to 2011 saw a flurry of apps launched or promoted, allalgorithm, interface and product suite over the last Facebook, whilst Facebook’s own Places product has aimed at allowing on and offline media to be12-18 months: expect more of the same in 2012. failed to set the world on fire. Location is going to integrated, including Google Goggles, blippar &On the other side of things, 2012 could see Google iTagged: neither advertisers nor users can be become a means for marketers, rather than an end,hit by fines & restrictions by the American FTC & EU; expected to utilise so many platforms and 2012 will and not a moment too soon.whether or not the charges of monopolistic & anti- need to see a VHS moment, where one app, platform So, 2012 then, kind of like 2011, but more so; a yearcompetitive practices have any basis in fact, 2012 or technology becomes the standard. that will see the culmination of trends that have beencould be the year Google finally turns into Microsoft. developing for years. But, whilst we’re pretty sureIn 2003 Microsoft was hit with a €497m fine by the there won’t be any seismic changes in the world ofEU for its anti-competitive bundling practices. digital this year, if the last 20 years has taught usAnd it’s not just Google either. Facebook has just had anything, it’s that it never pays to be too certainto agree to 20 years of oversight by the FTC at the about such things. Here’s to another interesting 12same time as the Irish DPC is investigating whether months.its Like button and social plug-ins break EU privacy ciaran.norris@mindshareworld.comlaws. The EU has just announced an anti-trustinvestigation into Apple’s ebook-store. None of theweb giants are safe.
  12. 12. TEN X TEN
  13. 13. ONE-HUNDREDPOINTSFOR 2012
  14. 14. M 10 x 10 flickr: Joe Shlabotnik person in the supermarket aisle. Seeing how they behave and interact with brands in a live environment offers a different perspective. Ethnographic studies allow researchers to “live” with the participant and monitor their day-to-day behaviour. In 2012, Mindshare, in partnership with Sponge It will roll out exciting new technology to provide more real-time ethnographic data. We can of course use neuro-research methods – eye CONSUMERCENTRAL tracking, skin conductance, EG and FMRI – essentially monitoring the brains reaction to certain stimuli e.g. advertising copy. Of course this data tells if the brain reacts in a certain way with no bias, but not Researching Behaviour Understanding consumers is at the heart of what we do and various research methods are regularly used, necessarily the context for this reaction or rationale. Hilary Tracey outlines new approaches to but how do we know if we are using the right When considering consumer behaviour research, researching consumers and Finian Murphy methods to achieve our results? think about how the “experiencing self” would view and Rachel Ray outline the ten consumer your brand on the shelf or your ad on the bus shelter. themes for 2012. When answering a questionnaire or participating in a Then consider what kind of memories “the focus group, the consumer is being tasked to recount their brand experience and knowledge. Cognitively remembering self” would have of your brand and/or campaign. Connecting both research methods (live they are accessing their memory bank for this reaction vs recalled memories and opinions) and information. How a consumer thinks of a brand is taking a two-pronged approach will provide you with different to how they interact with it in the present. rich data on you consumers’ opinions and more Daniel Kahneman, a leading psychologist in importantly behaviour. behavioural economics coined the phrase of “our So what have we learned about consumers through experiencing selves” and “our remembering selves”. research in 2011? We focus on three important Essentially both “selves” perceive happiness and events differently. He gives the example of a very consumer segments – and outline the 10 trends which enjoyable two-week holiday where both weeks are are important to recognise in Ireland in 2012: equally enjoyable. The “experiencing self” will enjoy 18-34 YEAR OLDS - THE LOST GENERATION? both weeks equally, but the “remembering self” will look back and remember as if it was a one-week 1. Brand Me holiday. The narrative was the same for both weeks, This segment are digital natives and in 2012 it will be important to understand that they are acutely aware nothing happened to make the two weeks stand apart so it is remembered as if it were one. of the power of social media, particularly in how they portray themselves and the information they are How we experience brands in the present and how we willing to give to brands. They self-edit their online remember them are different. How does this affect profiles and expect something in return when dealing the research methods we use? For example, with a brand. answering a question on which brand a person uses can yield very different results from viewing that
  15. 15. M 10 x 102. Generation uncertainty 5. Two-point-four Children FLUSH FIFTY+There is a great level of anxiety amongst young The typical family has also changed. CSO revealed It’s hard to believe in these times that the consumeradults, particularly those who have experienced 34% of births now occur outside of marriage and 5% group with the greatest spending power is still thefriends moving abroad. Brands who provide empathy, of births are now women over 40. Mindshare is least directly targeted. Ireland is collectively agingreassurance, or support will win this segment over. researching how the housekeeper target is changing. and 80% of private financial wealth is possessed by3. Make ʻem laugh 6. Back to reality over 50s. …you have to keep As predicted last year, we have seen a return to the upbeat and grab any community. 69% of consumers told us they planned to spend more time with close family and friends this bit of fun time that’s year and huge rises in community involvement have been seen right across the country. available 7. Value vigilantThis segment is not ignorant to the reality of the 53% of us are researching online before we purchaseeconomy, but is seeking fun and escapism. There has and we’ve doubled our online searches for coupons on last year. The biggest shift in coupon culture is 8. Segmenting the segmentbeen a move away from the doom and gloom ofbroadsheets to entertainment in tabloids, our how consumers now openly share their value finds By very definition, this group is problematic. Itsearches for “good news” have tripled since 2008 and proudly. They’ve been further empowered to do this bundles together those who remember war rations,the top film in 2011 was the comedy Bridesmaids. through the developments in social and mobile. ‘free love’ and dancing to Thriller. As over 50’s hold4. DIY TEN Consumer Themes for 2012 the greater portion of wealth, it makes sense that we need to better understand exactly who they are andFor those willing to stay in the country, many have 1 Brand me: selling your image online how they are spending it.used their initiative and with limited cash do thingsfor themselves, music, arts and sport have all been 2 Generation uncertainty: growing anxiety 9. Retail identity crisisdriven by underground young movements and tag Make ‘em laugh: Give consumers some fun The single shop has become the multi-shop. 35% ofrugby, running and bootcamps have replaced 3 the consumer cupboard is own brands. Websiteexpensive 4-star gyms for this generation. DIY: saving money by doing it yourself research is driving consumers to stores knowing 4UNDER PRESSURE FAMILIES exactly what they want. At the same time retail units Two-point-four children: Changing families have become the testing areas for consumers who 5 As I write this letter I am hoping that sleep can buy online. provide me with some escape from the anxiety 6 Back to reality: the importance of family 10. Inconspicuous consumption and pain that the economic situation is wreaking on me and my family 7 Value vigilant: price conscious consumer Flashing the cash has gone out of fashion. Garish labels is getting brands nowhere these days, but theWriting a letter to The Irish Times, MP Mac Domhnaill 8 Segmenting the segment: Focus on 50s subtle and persuasive argument of quality ,heritage, timelessness and value always will.expressed the anxiety he and many families haveexperienced in 2011. When we researched this 9 Retail identity crisis: Shops in different places hilary.tracey@mindshareworld.com rachel.ray@mindshareworld.comaudience in early 2011, only 1% said they hadn’t 10 Inconspicuous consumption: Less is more finian.murphy@mindshareworld.comtightened their spending.
  16. 16. M 10 x 10 flickr: Tony Buser time soon, and certainly not until Apple gets behind NFC in a big way – iPhone 5 anyone? However, though m-payments still sits in the early part of the hype cycle, m-commerce is well and truly flourishing in Ireland today with over 600,000 Irish people estimated to have availed of mobile phone discount offers. 54% of Irish phones MOBILEMANIA are now smartphones Mobile has grown up For anyone playing catchphrase bingo at various marketing conferences this year then surely the most Mobile coupons have been incorporated into a number of recent Irish campaigns with redemption Fiona Gallagher puts some manners on the repeated phase had to be ‘This is finally the Year of being trialled through a variety of routes including frantic buzz that will surround mobile Mobile.’ Whilst 2011 was certainly a landmark year actually showing the mobile screen at the check-out, marketing in 2012. for mobile in terms of consumer usage and as a scannable mobile barcodes or unique PIN numbers, marketing channel, we believe that we only glimpsed delivered by SMS and activated by POS staff. Driving the tip of the iceberg that is the change mobile will redemption on a large scale seems to be the common deliver in commerce, media and communication. challenge with the key denominator being that offline redemption was largely restricted to small, easily The dream of waving your phone at a payment point, controllable venues, such as convenience stores, in your local supermarket seems very close. 54% of pubs or at niche events. Irish phones are now smartphones, Starbucks has generated 26 million mobile transactions and Google is fully behind mobile payments having launched Google Wallet. However, turning contactless payment, or NFC (near- field communication), into an every-day experience will not be immediate. It requires significant collaboration between separate stakeholders such as wireless operators, handset manufacturers, payment solution providers and bricks-and-mortar retailers, all with their own vested interests, and there is a need for universal standards regarding security, in-store hardware, service logistics and back-end systems. With reported costs of approximately $500 to install NFC to a check-out desk, we don’t see multi-store/ Giants like Visa are defending against Google Wallet multi-aisle Irish retailers re-fitting their systems any
  17. 17. M 10 x 10Though location based services incorporating check- Ten Points on Mobile in 2012in, such as Foursquare or Facebook Places, don’t SoLoMo (Social, Local & Mobile)seem to have gained much traction in Ireland,location based mobile advertising has delivered 1 Guaranteed prediction for 2012 – more jargon!success for a number of advertisers already, with onenetwork running campaigns targeted to its opt-in The consumer is ahead of the gamedatabase of 700,000+ subscribers. 2 Mobile will outpace desktops in 2012Combining their geo-targeting capabilities (based onusers’ GPS/cell-tower data) with niche interest/ Put those scissors down!demographic segmentation, they are able to push 3 Simply re-sizing your banner ad for mobile isrelevant messages to select audiences within defined not going to work todaylocations, and it seems likely that the other networkswill follow their lead. The potential to freak out While integrating mobile into the media mix is a no- Time spentconsumers will need to be managed though, as there brainer advertisers will need to decide whether they 4 Minutes spent with mobile will grow by 12%are already enough potential privacy issues waiting to really need an app: with over 5 million reported appsblow-up in 2012, without adding another. downloaded in Ireland and most people only using a Don’t throw the baby out select few regularly, it will be essential that brandedQR codes, iTagged, blippar – we’ve already explained 5 Don’t forget killer mobile app - SMS apps provide real value, whether through utility orhow there are too many options for tying mobile to entertainment. Higher impact formats, such asoffline paid media, whether that be packaging or a Medialets will make it slightly easier to cut through Secret guilty pleasuresprint ad. However, no matter which route an on mobile devices, but not as easy as some mightadvertiser selects, a mobile response mechanism is 6 The mobile screen is a private space which think. creative needs to consider carefullynow just as important as the ubiquitous website URLon all ATL media and packaging. As the trend of Finally, delivering reach on mobile has come of agedual screen viewing grows, mobile will play an with Irish publisher apps now able to deliver unique Always onincreasingly important role in facilitating audiences on their mobile sites equal to their 7 Each day, 34% of users surf the web on theirreal-time, two-way dialogue in earned online properties. Though Irish mobile ad smart phone when there’s a PC nearbymedia environments such as spend - estimated by IAB Ireland to beFacebook or Twitter. around €1.6 million (H1) - is a long way Following the click off what the channel deserves, this hides 8 Improved ad-serving will enable us to the ecosystem of investment that is going measure ROI by channel post the store walls. into mobile with some advertisers not thinking mobile campaign but mobile strategy, Handset Wars and employing it to cement the always-on 9 28% of smartphones are Apple, but Android interaction between their CRM, point of sale, is increasingly dominant player commerce and advertising. IAB forecasts Mobile advertising is believed fiona.gallagher@mindshareworld.com 10 to be growing at a rate of 150%+ per annum
  18. 18. M 10 x 10 flickr: kss_cville comparison shop in-store. Where previously thrifty shoppers would visit an electronics shop and get advice from a staff member before returning home and buying online for a lower price, mobile armed shoppers can now ask retailers for advice, compare online reviews, search competitor prices and then complete an online purchase on the go, without having to leave a store to purchase from a competitor. A recent US Google study showed that 45% of FINDANDDISCOVER Search and display advertising Search engines have transformed consumer purchase decisions. 74% of consumers rely on search engines Ollie Smith, Vanessa Vallejo, Mark Kelly and to research the products they buy. Perhaps even more Sally Ann King talk about the latest interesting is that research isn’t just being carried out developments in search and digital display . on big ticket items like cars or holidays, but extends to everyday grocery and household items like soft drinks, cereals, and cleaning products. In a pre-digital world, research involved looking up a phone book, window shopping, talking to friends or going to a library. Today, consumers have Mindshare offices on Google Street View information at their fingertips. The unique opportunity this gives advertisers is the ability to reach them as they’re actively looking for answers. smartphone owners use their phones while shopping. In fact, comparison shopping is so prevalent that Best As the number of touch points influencing consumer Buy, a leading electronics retailer in the US has now purchase journeys have grown, so have opportunities started covering up product barcodes to stop this for marketers. For example, on a short commute to from happening. Should a consumer find a better work a person could hear a radio ad, tune into a price the other side of town, they now have Google discussion on travel insurance, see an ad on a Maps/Street view to guide them to the next nearest passing bus, and respond by searching for travel retailer - and soon “Google Maps Indoors” may even insurance on their mobile phone - where they could help them discover exactly where the product sit in complete a purchase online via mobile internet or each store - all from the comfort of a consumer’s over the phone by clicking on an a paid search ad. pocket. The amount of ATL ‘push’ media driving search has meant that consumers now have the power to
  19. 19. M 10 x 10Following Google’s Panda update in 2011, sites DISPLAY - ENGAGEMENT IS THE NEW CURRENCY Facebook have spent much launching new adprioritising content, usability, site speed, design and Despite possible 2011 spend of €60 million, display products to capitalise on engagement as athe general user experience saw improvements in currency: first Sponsored Stories, now Page Post often doesn’t get the attention of other, smallertheir organic visibility and we expect this trend to ads. Whilst they haven’t said so explicitly, it channels. This is largely due to the fact that it isn’t allcontinue in 2012. As search continues to grow in that different to the first display ads from the seems obvious that, privacy concerns aside, ifIreland in 2012, businesses will invest considerably in mid-90s. What might change in 2012 is how that Facebook could externalise its products, andsearch engine optimisation to improve and retain media is paid for & placed. We’ve already talked in essentially turn the social graph into an ad-visibility amidst growing online competition. detail about DSPs so let’s instead look at the other network, the rewards could be massive.Maintaining organic visibility for competitive search end of the spectrum where engagement is set to beterms, once relatively easy on Google.ie, will grow the most important KPI. All of these hint at a world where ads that don’tincreasingly difficult as businesses move away from connect with consumers either won’t be shown or willcostly push media and invest in their websites and 2011 saw a number of developments that hint at cost more to place. Either way, it seems that displaymobile offerings. Businesses who’ve subscribed to where display will continue to head in 2012. advertisers are going to need to spend as much timeGoogle properties, i.e. business listings, maps, Microsoft’s Xbox Kinect, a much under-valued ad thinking about engagement as any other KPI.YouTube video, merchant centres and Google + brand platform, now allows gamers to tweet ads, oliver.smith@mindshareworld.compages will be rewarded with more opportunities to amongst other actions. It’s easy to see how they vanessa.vallejo@mindshareworld.comdominate the search engine results pages. mark.kelly@mindshareworld.com might start to reward advertisers who get the sallyann.king@mindshareworld.comWith the Bing/Yahoo Search Alliance finally set to most interactions, as this would show that gamersreach Irish shores in 2012, those who have backed . were enjoying, rather than resenting, ads. Top Ten Digital Points in 2011the smaller players, might see a multiplier effect on YouTube launched TrueView, where the advertiser 1 Focus on results - even more accountabilityreturns as Microsoft backs Bing with an ATL push. only pays when the consumer watches the wholeAt all stages of the consumer purchase journey, 2 Greater use of rich media ad. It’s likely that a YouTube version of Google’ssearch will continue to play a major part in driving Quality Score will be rolled out and poorly scoring Further use of Google Local Search (maps)awareness, visibility and action whether via mobile, 3tablet or desktop device. ads get taken off the system. 4 Cross media planning - full integration Twitter started to roll out its ad products, and again, those that didn’t connect with consumers 5 Increased search engine optimisation suffered. If ads sent live via Twitter’s Promoted Tweets product have no interaction they get taken Mobile search: mobile is taking over 6 off of the system. 7 Content partnerships Google+ included social context (John Doe +1’d this) in its search and display ads. Ads with +1s 8 YouTube TrueView: test your TV creative tend to get better click-through-rates and, in search at least, CTR leads to lower costs due to 9 Optimised sites for different devices the Quality Score. 10 Google+ Your search gets social

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