Jon Wade - How communication technologies have change consumer behaviour and the implications for Agencies and Brands
How communication technologies havechanged consumer behaviour and theimplications for Agencies and BrandsJon WadeHead of Digital, APAC – Weber Shandwick
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
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…)
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
This relationship iswhy PR exists. It’s why Weber Shandwick’s clients have jobs.…And it’s why I have a job.
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.
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
The Internet gave anaudience to anyone who wanted it.
Blog Platforms Social Networking Video Services Platforms Live Streaming RSS Search EnginesInternet technologies provide would-be inﬂuencers a ready-made online audience
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.
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…
Our inﬂuencers have changed, and instead of working with a handful of inﬂuencers the PR industry now has to work with MILLIONS of them…
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
We haven’t consumed [much]more media since theInternet showed up. But there’s [much] more media to consume
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.
In fact, PR post-Internet now hasthese models as well… ATL SNS Brand MarketingConsumer Consumer Consumer Consumer Consumer Brand BTL Micro-blogging Marketing Consumer
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
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
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.
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: http://www.campaignasia.com/Article/244429,johnnie-walker-launches-12-ﬁlm-brand-campaign-featuring-chinese-pioneers.aspx
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
Launch Event Sina WeiboTV Spot Douban Page Tudou Channel HanHan - KOL Sina Blog
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 Baidu / Google you can ﬁnd out whether this washing powder really does get your whites whiter.
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
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…
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
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 getting into the PR game – they’re developing advocacy models in their campaigns like the Johnnie Walker example we saw earlier.
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 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.
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)
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.
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.
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.
Why the Internet hasn’tdiminished the importance ofofﬂine communications
Despite all this Internet-induced mayhem, the Internethasn’t diminished theimportance of ofﬂinecommunication… Why?
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.
To illustrate the points: Mostsigniﬁcant online inﬂuencers areinﬂuential ofﬂine too… Writers Business People Pop Stars PoliticiansActors / Actresses News Organisations
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!
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
Online & Ofﬂine integration incampaigns is an imperative in our digital world. At Weber Shandwick we call that Inline communications.
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 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
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.
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…
Why the Internet hasprovided brands aresponsibility to change too
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
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
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 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.
Thanks for listening.Jon WadeHead of Digital, APAC – Weber Shandwick+852 9789 8973@firstname.lastname@example.org