Marketing Trends You Can’t Afford To IgnoreSeattle MarketMix 2013
“I don’t set trends. I just find out what they are and exploit them.” Dick Clark
“Trends, like horses, are easier to ride in the direction they are going.” John Naisbitt
“Advertisers are constantly accused of creating trends, shaping attitudes and planting newbehavior in consumers. But in fact, the opposite is true: advertising doesn’t set trends, it follows them.” Terry O’Reilly
0.5%fans talking about abrand on Facebook Source: Karen Nelson-Field & Jennifer Taylor, ‘Facebook Fans: A Fan for Life?’, ADMAP, May 2012
The brands that do the best job with social networksput themselves in the seat of the consumer whenusing social FB/Twitter are not used to learn about brands People use them to talk about themselves or to interact with others 12
TV still biggest...online close behind...print is gettingsmashed vs. 2006 42% +1 38% +15 9% - 11 7% -4 4% -2 Source: US advertising revenue (millions) http://www.businessinsider.com/state-of-internet-slides-2012-10?op=1
77%of people say theydon’t have arelationship with abrand Source: Harvard Business Review, http://blogs.hbr.org/cs/2012/05/three_myths_about_customer_eng.html
Participation and interaction with marketing initiatives isstill greatest among those who are closest to the brand Source: Patricia McDonald, http://planninginhighheels.com/2011/02/08/planning-for-participation/
Campaigns whose primary objective is participation “are good at market share defence but little else” 100 = avg*Market share defence 126 85Profit gain 75Market share gain 72Reduction of price sensitivityCustomer retention/loyalty 66Sales gain 50Customer acquisition 38 Meta-analysis of 254 campaign case studies over past 7 years * Very large business effects (indexed vs. all campaigns)
Implications Develop consumer opportunities to interact for those who want it Leverage brand evangelists Reach everyone else through TV To signpost, ignite, fuel, explain Sole focus just on participation won’t grow your brand
Implications Campaigns that work across screens can extend reach enormously We saw campaign recall double in a recent local campaign where TV was used in addition to online Plan creative content and media as a single exercise TV is not dead but it will evolve Move completely away from TV with caution TV frequency may decline – focus more on reach Where reach builds quickly, may need to pool out more often
Ever Increasing Importance of Big Creative Ideas
‘Creative’ explains 75%+ of the variance in campaign success.
Great creative ideas can drive strong viralconsumer activity…
Often word-of-mouth can outperformpaid media within the touch-point mix
Excellent creative is one of the important drivers of WoM Campaign Drivers of Awareness Paid media Average of recognition at the top of the purchase TV ad funnelImportance to Response Online ad magnitude Print ad Average of importance Website Out of home poster In store Word of mouth New s Item 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 Recognition Reach – Recognition of Media
Excellent creative is one of the important drivers of WoM Campaign Drivers of Purchase Intent WOM, web, Average of recognition in-store at the bottom of the purchase Word of mouthImportance to Response funnel magnitude Website In store New s Item Average of importance Out of home poster Online ad Print ad TV ad 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 Recognition Reach – Recognition of Media
Effective Ads typically have:Interest ValueA differentiating and relevant messageSimple storylinesAn immediately clear connection with the brand Branding that’s subtle, insistent, integrated Brand as hero, as a part of our lives
Effective Ads: Interest Value Interest value is subjective, unique to the individual. Memorable ads have something that helps them stand out from the crowd and gain attention. And the tactics keep changing.
Effective Ads: Interest ValueThere are predictably effective ways of breaking outfrom the pack… Use of humour Upbeat commercials with music Cute or appealing characters (kids, babies, dogs, etc.) Newsworthiness or information value An engaging narrative or story Use of an (identified) celebrity Continuity (of characters, style, etc.)
…and now….a contest with prizes for the first person to identify the next brands by the following images…..
Implications Know your audience and do all you can to leverage great creative against it Be confident in your strategy A good story… Execute with finesse …well told Does your process allow for this?
The insight for the creative Big Idea maynot be so rational or found in productattributes
Why should brand managers care about the emotions associated with their brand? Almost everything we do is for ourselves! Why should I? What will this brand do for me? What do I feel like doing? Genetic evolution is selfish by designIPSOS ASI LESSON LEARNED
Emotional associations drive brand equity - and more associations are better Brand Equity is higher when more emotional associations are present R = .61 Brand Equity Distinct Emotional Associations Source: Ipsos ASI R&D StudyIPSOS ASI LESSON LEARNED
The more emotional associations related to a brand the greater the purchase interest Number Of Emotional Associations And The Effect On Purchase Intent Definitely + Probably will buy 77% Definitely will buy 70% 64% 58% 49% 59% 46%Purchase Intent % 46% 42% 35% 20% 28% 26% 10% 0 1-2 3-4 5-6 7-8 9-10 11+ Number of Emotional Associations Source: Ipsos ASI R&D Dec 2007, N.A.: 75+ brands across 15+ categories
What Kinds of Emotions? Positive ones have the highest correlations with purchase intentPassive PassiveNegative Positive Doubtful/Confused Relaxed/Calm Unengaged/Bored (12%) (50%) (NA Norm= 20%) Warm/Trust/Happy Engaged/Curious (33%) (42%) Negative (12%) Turned-0n/Eager Active (28%) ActiveNegative IPSOS ASI LESSON LEARNED Positive
Marketers need to build emotional associations on to the brand This is about emotional ‘need states’Fancy Thursday Sunday footballevening: with the guys:
Because we change moods/needs every day, it is difficult to segment, and define the right message to an individual, for the right mood. Brand Managers must “paint” their brand with emotional associations and expected emotional pay-offs.IPSOS ASI LESSON LEARNED
Implications Emotions are everything, whether we perceive it that way or not We do not make “rational” decisions without emotions and emotional associations
Identifying Message Receptivity & LeveragingNeed States
Implications Buying less may seem counter intuitive but: It can pay major dividends in customer loyalty Offer up highly relevant differentiating positioning
Consumer Media Research is Becoming MoreImportant
This is thekind of media planning above and beyondconsumptionand audiencemeasurement (ratings).
Older people watch more TV than younger, but they haveless recall – viewership isn’t enough to understand mediaimpact Claimed Proven 54 40 34 29 22 15 18-34 35-49 50+
This is about growth in understanding how touch-points work and how to help marketers better plantheir integrated marketing programs.
How do different touch points combine toextend recall – are all needed?
In a synergistic campaign, what happens when the audience see multiple touch points? How many are too many? Touch Point Impact on Purchase Intent Very Likely Quite Likely 92 84TOP 2 72 BOX 59 62 68 56 47 12 16 22 24 Seen One or More Seen Two or More Seen Three or More Seen Four or More
Implications Media buys can be impacted by the nature of the audience Where is the brand at in its evolution? Different touch points impact different metrics Synergy extends impact with exposure to multiple campaign media
We Will Use New Methods to Understand OurAudiences
The New NormalWhere consumers areconstantly connectedand “always on” is thedefault setting 69
The New NormalWhere we are acceleratingtoward a new singularitywhere the storing of aconsumer’s digital lifewill be accessible on anydevice 70
The New NormalWhere we are moving towardsa culture where informationabout most things becomesreadily available 71
The New NormalAnd where personalization ofthe digital landscape viadevices and apps will continueto grow quickly 72
TODAY’S CONSUMERS ARE DIFFERENTWe have to engage them inways that capitalize on andmimic their lives in a digitalworld 73
Multiple Sources will Provide More Accurate Understanding The complexity of our new normal means we can’t rely on one source for all insight: • We need to listen • And converse • And passively measure • And actively measure 74
Implication Getting the right person at the right time Reliance on smaller samples More “just in time” research vs. bigger ongoing studies Passive observation Tagging digital activity to more quickly and easily find those who have been exposed Quality implications More qualitative
In some markets,the average age isincreasing, whilewe observe large‘under 18’populations inother nations.Source: http://www.eea.europa.eu/data- and-maps/figures/median-age- projections
In some markets we see large influences fromimmigration, while others are ‘westernizing’.
In almost all markets we observe a growing powerof the consumer (the “prosumer”).
Consumers are increasingly guilt-free indisloyalty. The transactional model is ceasing toexist - the relationship and experience model is taking its place. From To Simple More complex Fast Sales Cycle Time consuming Buyer is not/does not Relationship building is have to be very key sophisticated
We see greater individualism, people arespending less time socializing “in person”.
Screen time is growing and personal care(health) is declining
Consumers are becoming more “on demand”– exercising their own power
Consumer targets are changing more quicklythan ever before.
The Implication: we need to be more savvy abouthow we market our businesses and who we aremarketing to