4202 master powerpoint tnaa


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4202 master powerpoint tnaa

  1. 1. Dr. Erica Ng Dr. Irving Lim Dr. Candice Lau Dr. Mei Lim Kim E Perry Haley W. Ridza S. Kristine A. Eunice T. ACADEMICS SPECIAL GUEST HONS.LY AD AGENCY TRANSNATIONAL ADVERTISING AGENCIES Good evening Dr Chung and fellow classmates. Today, we will be presenting on Advertising. Let us introduce our academics who specialize in this area. They are AP Irving Lim, Dr Mei Lim, Dr Candice Lau and Dr Erica Ng. (Each acadamic stands up and waves once he/she is being introduced). They will be covering topics ranging from Characteristics of Transnational Advertising Agencies (TNAAs), Online Privacy and Risk, Advertising in Emerging Markets as well as Social media trends - Current and Future. On the other side of our room, we have a real life example of an up and coming TNAA, Hons.ly Ad Agency. A little more about Hons.ly ad agency. It was set up in 2004 by the CFO of a TNAA Sootchi&Sootchi, who left the top advertising agency to pursue greener pastures. Ever since, Hons.ly grew from a small company of 3 to 3000. Their headquarters lies in the concrete jungle where dreams are made of, New York. Today, they have branch offices all around the world, especially in emerging markets like China, Brazil, India and Russia. You are looking at a Hons.ly office located at 4202. But before we begin, let’s hear from AP Irving Lim on TNAAs.
  2. 2. Introduction  Leveraging on Global markets  Products and services of TNCs  Financially interlinked  Consolidation through mergers & acquisitions  Positive synergy  Creative talent  Strategic niche  Maintaining competitiveness Introduction to TNAAs (Irving): According to Holwerda & Gershon (1997), it was mentioned that transnational corporations (TNCs) and transnational advertising agencies (TNAAs) have become business partners and are increasingly financially interlinked. This unique relationship allows TNAAs to tap on products and services of TNCs that are going global. What this essentially means is that as TNCs go global, their advertising agencies go global with them too! Another key characteristic that has been observed of TNAAs is the consolidation of agencies through mergers and acquisitions. Starting in the mid-1980s, the field of advertising has experienced increased consolidation similar to other transnational media companies (TNMC). Some of America’s leading agencies are merging and purchasing smaller agencies. This trend of TNAA expansion and consolidation will likely continue given worldwide privatization trends. Why, then, is there a need to consolidate? According to Gershon, there are 4 major factors. Firstly, to obtain positive synergy. Advertising is no longer just about providing a single service such as conceptualizing and producing an ad but it now encompasses varied services. A full-service agency specializes in planning, production, and placing of advertising for clients in all categories, from radio commercials, to posters and print, to interactive television commercials, to Internet and businesses. It also includes media planning and buying, market research and consulting, public relations and specialty communications. Secondly, there is a need to harness more creative talents. This is important as TNAAs has ventures in the global market, there is a need to tap on the creatives of host nations who better understand the context in which the ad will be placed. Thirdly, to obtain a strategic niche to complement current strengths. For example, through mergers with media and digital agencies, a TNAA will be able to harness their expertise on media technologies. Lastly, there is a need to adopt an aggressive approach to expand quickly before other competitors for creative talents and new customers. The extensive network of subsidiaries and offices in core, semi-peripheral, and a few peripheral nations will help build up a portfolio of global clients.
  3. 3. Global leaders  Top 4 agency companies:-  (1) WPP, (2) Omnicom Group, (3) Publicis Groupe, (4) Interpublic Group of Cos.  Primary holdings consolidated:-  Global networks (Young & Rubicam Brands)  Other agencies (Hill & Knowlton)  Media agencies (Mindshare Worldwide)  WPP Investments (Asatsu-DK) The top four TNAAs globally in 2009 are WPP, Omnicom Group, Piblicis Groupe, Interpublic Group of Companies respectively. An example of concentration can be seen in WPP. It can be seen that the major subsidiaries it holds is able to offer world- class advertising, public relations, and marketing research to help expand globally.
  4. 4. Award winning ceremony (Background:Slide of trophy and star trek sound clip to play) …And the winner of the Most Creative Advertisement of 2009 goes to…. HONS.LY enerGEN-Y taste the revolution advertisement! *Creative Director, Project Manager and Social Media strategist receives award and hugs each other* FREEZE
  5. 5. (Video starts playing in the background)
  7. 7. One Year Ago… • The Client: new energy drink called enerGEN-Y • The Goal: launch product in new emerging market called 4202 • The Target Audience: 4202 • A group of young, ambitious students whose motto is “Work hard, play harder” • The Competition: Red Bull, Naughty G, Gatorade Turning back time: Let’s look at what happened 1 year ago. One day, HONS.LY ad agency received a brief from a major ad client
  8. 8. Creative Brief • Brief • Create an advertisement to help enerGEN-Y enter a large emerging market called NM4202 • Description of NM4202 • Who are they? How old are they? • What do they like? What do they hate? • What do they do on the weekends? • What music do they listen to? What kind of movies and shows do they watch? • How much information do they have on Facebook, Twitter and other social media? *Creative Director goes to Intern instructs her to do data mining of 4202* Key Questions: 1. How does a market’s characteristics affect its spending habits? 2. What do their activities reveal about their preferences as consumers? 3. Is there anything from their respective lifestyles that indicates a need that Energen-Y can fill? 4. Can we create new needs for them to encourage them to buy Energen-Y?
  9. 9. *Slide of Intern tracking on 4202 facebook profiles*
  10. 10. Male 8 Data and Findings Female 36 football Singapore stars popular blogs tv series chocolate reality TV animal welfare politics music social media bubbletea chinese pop tennis staying up instrumentsuition scholar t sports sales late iPhone kpop manga photography gLee FML facebook travel jpop games entrepreneur dean’s list fashion publicclubbing religionrelations gossip girl *Presentation on Findings* Intern Eunice: I used Facebook to stalk them because everyone displays all their information there. I know it may be unethical, but all advertisers do that right? Information of consumers are being traded and sold everyday amongst companies, I’m sure we’re not the only ones who prowl personal profiles for information! Anyway, based on my research, I found out that 4202 likes KPOP, SPORTS, give tuition and most of them are on the DEAN’S LIST. They are also heavy users of social media. *FREEZE*
  11. 11. Privacy Level of government involvement in corporate privacy management Low Medium High If you’re worried by what the intern’s done, it’s because you feel your privacy has been infringed upon. As market data becomes increasingly important to companies making strategic decision, the tension between consumers who want as high a level of privacy as possible and corporations who want as much information as possible grows ever higher. As a result, governments have stepped in to varying degrees to try and manage the amount of access and control companies have over client data. This has led to five broad models arising for the level of involvement of governments in corporate privacy management. Low: Self-help: Consumers report infractions. Voluntary control: Companies practice self-censorship High: Registration: Remedial in that registration is only revoked when companies have been found to have committed infringements Licensing: Anticipatory. Companies must first prove ability to comply with laws before being granted a license to manage a database. Medium: Data Commissioner: Ombudsman model. Third party with no legislative powers receives complaints/ monitors corporations and reports infractions to relevant government bodies/ the media. International standard vary; can make compliance for TNMCs and TNAAs tricky. E.g. EU countries e.g. UK and France tend towards high government involvement while the USA and Japan favor self-help or voluntary control models.
  12. 12. Privacy • Concerns • Different opinions of acceptable privacy • Similar “hot topics”- especially healthcare • Unauthorized secondary access- the “third party” • Data tracking- going beyond cookies • Lotame This difficulty for TNAAs is even ore greatly complicated by the fact that social standards of privacy vary from country to country. However research has shown that some topics, such as healthcare records are universally held to be sensitive. E.g. of CVS (American pharmacy store) selling client prescriptions to drug company Elensys. Elensys used precription data they bought to market drugs to CVS customers. Resulting law suits and public opnion was so bad that they had to change their name. Universally people are most concerned about unauthorized third party access. Perhaps this is related to the fact that the data collected is getting increasingly complex and detailed.- especially online. Data tracking online used to mostly be cookies tracking how often you visit a site or what you buy but no longer. E.g. LOTAME which provides audience data for advertisers by tracking demographics, interests, actions (e.g. what people share on and comment on in social media), media, recency and frequency of visits and actions, exposure and sentiment and interaction. Much of which requires real-time tracking of user information.
  13. 13. Ad production *UNFREEZE* Creative Director: We’re so honored to receive this award today! At Hons.ly, we sound like we’re honest, but we’re not. We pretend to be creative, but we’re not. But we’re so glad that just because we are a TNAA, we can dominate the industry and win these awards, even though there are small local firms who produces cutting edge creative campaigns. Its just too bad they don’t have the money and access to many media channels, which we do. Its all about size, you know. Anyway, this is such a touching moment, I think im going to cry soon. Let me pass the mic on to my Project Manager who will walk us down memory lane to our road to success. Project Manager (Kristine): Hi everyone! Aren’t we just so awesome? I know, I know, no need to marvel in our awesomeness. But we really did face a challenge in advertising EnerGen-Y. When we first got the account, I wondered, how are going to sell EnerGen-Y in a market dominated by drinks like Redbull, 100 Plus and Naughty G? It wasn’t enough that we stalked our target consumers on Facebook and found out what they liked, we also needed to find out their values: what do they care about the most and what’s the most important thing to them?
  14. 14. Eight Gen Y Norms • Freedom: choice, jobs, expression • Customization: UGC, media, services • Scrutiny: products, company practices, employers • Integrity: corporations, marketing campaigns • Entertainment: video games, Facebook at work • Collaboration: Rotten Tomatoes, Amazon • Speed: instant feedback, rapid communication • Innovation: iPhone 3G, 3Gs to 4 in 2 years - Kristine talks about Gen Y Norms Source: Grown Up Digital, Ch.1, p.15
  15. 15. enerGEN-Y: The ultimate Gen Y • Strategy • Familiar personas within target market’s environment, i.e. the campus hottie, the sports star, the geek • Product is flexible enough to be used by anyone for any purpose • High sense of ownership and what it means to individual, i.e. What will you do with your EnerGen-Y? • BUT: admission of “guilt” that product is no more than a drink; depends on what you make it - Kristine talks about product strategies Strategy –Familiar personas within target market’s environment, i.e. the campus hottie, the sports star, the geek –Product is flexible enough to be used by anyone for any purpose –High sense of ownership and what it means to individual, i.e. What will you do with your EnerGen-Y? –BUT: admission of “guilt” that product is no more than a drink; depends on what you make it Source: Grown Up Digital, Ch.1, p.15
  16. 16. enerGEN-Y: The ultimate Gen Y • Gen Y Norms Featured • Customization: it is what you want it to be • Entertainment: oddball humor • Speed: no more than a minute and a half ad • Scrutiny/Integrity: we said no b*llsh*t, but is it true? - Kristine talks about Gen Y Norms featured Gen Y Norms Featured –Customization: it is what you want it to be –Entertainment: oddball humor –Speed: no more than a minute and a half ad –Scrutiny/Integrity: we said no b*llsh*t, but is it true? Source: Grown Up Digital, Ch.1, p.15
  17. 17. A Critique of the Advertising Strategy • Unified Marketing Strategy – Homogeneity in consumption patterns • Change in Design of Advertising Message – Product information to persuasion-oriented campaigns – Appealed to emotions and psychological needs of the audience Newly emerging international environment prompted advertisers to develop a unified marketing strategy for a global market. Such globalized plans required homogeneity in consumption patterns. This results in a change in the design of advertising messages from product information to persuation-oriented campaigns that appealed to the emotions and psychological needs of the audience
  18. 18. Standardization or Glocalization? • efficiencies in advertising expenditure! • established a common The New The Old Formula! brand image! Formula ! • gave access to market ‘Standardization’ ! segments which were similar from one country to another" ‘Glocalization’ ! BUT! • Global Marketing Disaster ! Standardization and localization What the creative director of Hons.ly has just mentioned about dominating the industry and edging out small local firms illustrates Anderson’s (1984) point that “Transnational advertising agencies have become profitable global communication enterprises that are powerful when compared to indigenous agencies.” This results in high barriers of entry into this sector and even if they do have a strategic niche such a cutting edge technologies, they might be acquired by TNAAs eventually. In the world of advertising today, a key consideration for ad agencies is discerning in what situations, and to what extent advertising across national and regional borders should be “standardized”. Or alternatively, “localized”, that is, made specific to each market (Duncan & Ramaprasad, 1995). What Hons.ly has done, is exactly what I have just mentioned, identifying a target group and suggesting commonalities that characterizes them. As energy drinks are already a fairly homogenized product, what they are actually doing is to Levitt (1983) suggests that there is now a “commonality of preference” which “leads inescapably to the standardization of products, manufacturing, and the institutions of trade and commerce.” One advantage of adopting a standardization approach is the creation of a stronger global international identity through consistent positioning and image across markets over time. Cost reduction through economies of scale in advertising production, sharing of experience and effective use of advertising budget Globalization of markets concept is attractive for global marketers as it promises greater global returns through the adoption of standardized marketing communications efforts. However what we are definitely missing out on the complexity of having the need to “glocalize” global campaigns, and adapt them to suit particular local markets. Asia is a region that has complex socio-cultural, religious and geographical differences that characterize the many national markets within the region There is a need for global marketers to respond to these complexities, although matching marketing communications efforts to local cultural and other differences is a difficult and potentially costly process Given the higher returns promised by more standardized communications approaches, the pull towards greater standardization is often harder There are also other issues that affect the success of standardized advertising such as regulation, product use patterns, socio-economic levels of development, education, language differences, and organizational structures
  19. 19. Case Study on P & G  Corporate Strategy of P & G  Strategic regionalism  “Winnowed” extensive roster of over 200 global marketing services shops and its interactive agencies  Aim:  To facilitate the “faster flow of information” between P&G, its agencies, and its retailers  Streamlines its global marketing communications effort The largest advertiser in the global market is Procter & Gamble. They have adopted a glocalization approach for the promotion of their wide range of products and services. The “global business units also known as brand management groups” develop and manage strong global brands by developing largely standardized global products as well as “geographically based market organizations” to plan and execute the company’s marketing strategies, to adapt these standardized advertising to local conditions. P&G also went through a process of “winnowing” through its extensive roster of over two hundred global marketing services shops and interactive agencies. In 2004, they approached 2 main agency holding companies, Publicis Groupe and Grey Global Group, to pitch plans to consolidate or re-organize its global retail marketing effort. All these efforts were aimed at facilitating a “faster flow of information” between P&G, its agencies and its re rilers, thereby streamlining its global marketing communications efforts.
  20. 20. Project Manager (Kristine): We’re so, like cool and creative right??? Anyway, another secret strategy: GLOCALIZATION!!! Motions to Posters: Check out the posters all around the room. We have endorsements from Singapore’s most popular aesthetic doctor, Gorgeous Lee!!! Who by the way has generously given me a special botox shot for tonight’s event. We also have local tennis superstar Roger Feng De Ler. And of course, who could forget the region’s most popular pop superstar, Kim E Perry from Korea!!!
  21. 21. SHOW JACKIE CHAN SLIDE: oh, by the way, Jackie Chan actually volunteered to endorse our product too, but we said no because he’s already endorsed waaaaay too many products. And personally, I think he’s too old for EnerGen-Y anyway. As I was saying, because we’re in Asia, we want to make sure that our celebrity endorsers were still people that our target audience can relate to, because this is exactly how glocalization works! Though EnerGen-Y is a globally popular energy drink, we want to make sure that it reflects your unique taste and personality, no matter which corner of the globe you’re in!
  22. 22. h"p://www.thomascrampton.com/vietnam/vietnam-­‐media-­‐partners-­‐asia-­‐media-­‐summit-­‐vivek-­‐couto/ Their economic growth provides great potential for TNAAs. By breaking into emerging markets, TNAAs can increase market shares and increase profits Reasons for entering 5 Asian Countries with the highest advertising growth include Asian markets Philippines, China, India, Indonesia and Vietnam Well said well said, indeed Glocalization is an essential strategy that Advertising companies should engage in, efforts like the use of pop superstar like Kim E Perry will definitely help create a connection between the audience and the product. I will further elaborate on this point later, but before I proceed, let’s first take a look at why Advertising companies should expand their efforts to the Asian market as well. Reasons for advertising in Asian markets - Their economic growth provides great potential for TNAAs - To increase opportunities to gain more market shares and increase profits, TNAAs will enter into Asian markets to engage directly with new consumers. - As seen above it is projected that from 2008-2013, the 5 Asian countries with the highest advertising growth would be Philippines, China, India, Indonesia and Vietnam. - (lead on to next slide) For the purpose of this presentation, we will be looking at advertising in China as a case study
  23. 23. Advertising in Asian Markets Advertising in China
  24. 24. Recent Developments in the Advertising Industry in China  Since China joined the WTO in 2001, Chinese advertising industry is increasingly under global influences.  Foreign companies were initially required to operate in China as joint ventures with a local Chinese agency. Since China joined the WTO in 2001, Chinese advertising industry is increasingly under global influences. Like what was mentioned in the Gershon article: The protectionist sentiment led to the institution of artificial barriers to protect the culture and autonomy of host nations. Hence foreign companies were first required to operate in China as joint ventures with Chinese agencies.
  25. 25. Recent Developments in the Advertising Industry in China • However in order to achieve world class standards and cutting-edge advertising, the requirement for a TNAA to joint venture with a local company was abolished in 2005. • Multinational agencies may now operate as foreign- owned corporations and repatriate profits directly. • Two-tiered structure of the global advertising industry - Large Global Advertising Agencies - Hundreds of local agencies that serve smaller cities of China. However in order to achieve world class standards and cutting-edge advertising, the requirement for a TNAA to joint venture with a local company was abolished in 2005. Multinational agencies may now operate as foreign-owned corporations and repatriate profits easily. Two-tiered structure of the global advertising industry Large Global Advertising Agencies Hundreds of local agencies that serve smaller cities of China
  26. 26. Recent Developments in the Advertising Industry in China • Foreign direct investment and high economic growth both contributed to an increase in advertising expenditure which exceeded US $7.2 billion • China overtook South Korea to become the second-largest advertising market in Asia. • With a total of 76,200 advertising agencies and a 14.8% growth rate in 2004, China became one of the largest and fastest-growing advertisement markets in the world Due to a combination of foreign direct investment and high economic growth, advertising expenditure has exceeded US $7.2 billion, resulting in China overtaking South Korea to become the second-largest advertising market in Asia. With an estimated 76,200 advertising agencies and a 14.8% growth rate (2003–04), China is one of the largest and fastest- growing advertisement markets in the world (Harney 2004; China Advertising Yearbook 2005)…Now let’s take a look at how China is faring in online advertising
  27. 27. Online Advertising in China Source: h"p://english.iresearch.com.cn/views/Online_Marke8ng/DetailNews.asp?id=8369 Apart from advertising via traditional platforms, China is also actively leveraging on advertising via the online platform Although the growth rate of China’s online advertising has been fluctuating, a quick glance at the graph shows the market size of China’s online market has been on the rise since 2001
  28. 28. Consumer-Citizen • Advertising is causing China’s gradual transformation into a consumer society. • A political economy that promotes high salary and high consumption With advertising being done on various platforms, the consumer is bombarded with endless advertisements everyday. This gradually transforms China into a consumerist society. This growing phenomenon also steers China’s citizen towards a political economy that promotes high salary and high consumption.
  29. 29. Challenges Faced Marketing strategies being pursued by global advertisers to overcome various challenges: 1. But conducting advertising on an international platform is not as easy as it seems. There are definitely challenges that lie in the way of success. Indeed, today we will be presenting on two challenges, namely the cultural and political challenges.
  30. 30. Challenges Faced - Cultural  Despite modernisation, China is rooted in traditional Chinese values  Posing dilemmas for advertising executives to develop creative campaigns  Advertisers soon saw a need to remove the ‘Americanness’ out of the product Despite modernisation, China is rooted in traditional Chinese values This pose dilemmas for advertising executives to develop creative campaigns simply because western advertising were first created in accordance to the American dream and conflicted with China’s communist values Advertisers soon saw a need to remove the ‘Americanness’ out of the product
  31. 31. Cultural Trespass - Ads Disallowed in China  Homogenized, broad appeal messages that failed to consider the impact on Chinese cultures  Promotes consumption of Western products regardless of the culture’s needs or wants  Hence incongruent cultural views of consumers and marketers and a lack of historical sensitivity on the part of the advertisers, may result in failure. Advertisers had to be care to remove homogenized, broad appeal messages that failed to consider the impact on Chinese cultures Advertisers also had to assess if it was befitting for them to promote consumption of Western products that were in conflict with the culture’s needs or wants Hence in order to ensure success in the China market, incongruent cultural views of consumers and marketers and a lack of historical sensitivity on the part of the advertisers must be addressed lest it resulted in failure.
  32. 32. Challenges Faced - Cultural Toyota In 2003, Toyota had trouble with its advertising. The company produced an ad for its Prado Land Cruiser in which a stone lion (a symbol of China) salutes the Japanese vehicle. The ad fired up the long-standing animosities and competition that exist between China and Japan. In addition, Prado was translated into Chinese in such way as to suggest rule by force, tyranny, and domination. These cultural and linguistic innuendoes were not well received in China.
  33. 33. Challenges Faced- Political  Socialist system of one ruling party  Chinesegovernment has more power to intervene economic development than any democratic government  Unlikethe U.S where there is a National Advertising Review Board, the government reviews advertising in China  Advertising produced by multinational agencies for global brands frequently encounters strong feelings and attitudes on the part of the Chinese government. China has a socialist system of one ruling party without a system of balance and check, the Chinese government has more power to intervene the economic development than any democratic government. Unlike the U.S where there is a National Advertising Review Board who vets the content of advertisements the government reviews advertising in China. Advertising produced by multinational agencies for global brands frequently encounters strong feelings and attitudes on the part of the Chinese government.
  34. 34. Analysis of ad content : List of Advertising Taboos Tom Doctoroff, CEO of J. Walter Thompson for Greater China advices advertisers to stay away from these taboos: 1. Sex – No Cleavage, Sexual Scenes, Homosexuality 2. Unsafe behaviour – No jaywalking, spitting 3. Disrespecting the political hierarchy – Poking fun at any political figures In order to ensure that advertisements disseminated in China will be well received by the general audience and the government, we went to research on the general taboos that the Chinese government would not hear of. Tom Doctoroff, head of advertising in greater China for JWT, offers the following hands-on advice about succeeding with the censors. Here is his list of what to avoid: For Sex. Just to name a few, No eroticism. No cleavage. No mornings after. No premarital titillation. A BIG NO NO to married couples in bed together. No homosexuality. No condoms. No AIDS. No massage parlors. No sensual skin stroking. Belly buttons are vulgar. "Unsafe" or "uncivilized" behaviour are also not allowed to be displayed in ads. So, no driving without a seatbelt. No jaywalking. No running on busy sidewalks. No blocking traffic. No playing on the roof. No rolling around on the grass of a public park. No spitting. The Chinese place a lot of emphasis in respecting their political heads hence any Disrespectful acts against the political hierarchy must also be avoided—i.e. Poking fun at any political figure—Mao, Deng, Jiang, Hu (Jin Tao), Wen (Jai Bao), the local Party secretary, "good" emperors, and any Party member—is, of course, strictly forbidden.
  35. 35. Analysis of ad content : List of Advertising Taboos 4. Disrespect to social hierarchy – Eg. Teacher must always be wiser than the student 5. Affronts to China- National symbols are sacrosanct 6. Affronts to competitive products-No comparison advertising 7. Affronts to neighborhood pharmacists- No showing of patients or symptoms Another interesting taboo to note is not to showcase any content that Disrespects the social hierarchy. Father is always smarter than son. Teacher is always smarter than student. Elder brother is always smarter than younger brother. Senior citizens are always the wisest of all, save the emperor (or Party leader). Round-faced children are obedient disciples of all things Chinese. Affronts to China are also not permitted. The Chinese are nationalistic. Any slight, perceived insult to their National symbols—dragons, phoenixes, the Great Wall, the Temple of Heaven, Tiananmen, Ne Zha, Kung Fu masters (Nike got burned here)will not be permitted. The failure to explicitly recognize China's greatness is risky. Affronts to competitive products. Comparison advertising for example in "The Pepsi Challenge” the advertising company is not allowed to have Sprite's colors (yellow and green) next to a 7-Up cart. Affronts to neighborhood pharmacists. Over-the-counter drugs are highly regulated due to concerns for: (a) public welfare as well as (b) the industry's fossilized state-owned enterprises and distribution arms. Advertizing companies are not allowed to show doctors, patients, symptoms or cures.
  36. 36. Pepsi Advertising US China Now let us have a look at two PEPSI advertisements, one done in the US and the other re-tailored to enter the Chinese market. (to be presented after two videos has been shown) Let us first have a look at the ad as shown in the US Now for the ad as aired in China Although the content is similar in both the US ad and the China ad some obvious changes include 1. Change in celebrity used in the ad: US- Michael J Fox, China- Aaron Kwok to ensure a familiar face for the audience 2. Heroic figure: In the US advertisement: Michael J Fox was seen squeezing himself out of the window, climbing down the stairs in the back alley dangerously, jaywalking and running across the road and jumping over cars. However as mentioned in the slides above: Dangerous acts are seen as a taboo in China, and any scenes that advocate dangerous acts should not be present. Hence we see the great modification and simplification in the Chinese ad in which Aaron Kwok runs across a zebra crossing instead. 3. Difference in cultural elements: In the US advertisement: the biker trend was depicted, but the Americanness in the ads which has no relevance in China had to be taken out 4. Rebellion: Lone hero up against an angry crowd, in this case the bikers, to show drama and emphasizes his desperate attempts to get the PEPSI. In China, society refuses to admit that rebellion exists within society and the ad shown in US if shown in China would make a conformist audience uncomfortable. 5. Distribution in Global Markets Project Manager: So enough of me talking. I now want to pass the floor to our genius social media strategist, whom we stole from a smaller, less important ad agency. Isn’t it so great being a huuuuge TNAA with lots of money??? Oh, I love it! Anyway, here he is everyone, our social media strategist!!!
  37. 37. Don’t underestimate the value of social currency! Social media is like the next big thing. I mean, all thanks to social media, the Hollywood industry and news industry is affected! Of course, we had to be reactive and think of something! So we created a facebook and twitter page to have online presence, and then we had to go viral. *FREEZE*
  38. 38. Existing Media Trends That is very wise! It seems Hons.ly knows exactly which forms of media would best reach its target audiences today. Viral marketing is indeed one of the most effective means of advertising simply because of the power of networking. Existing media trends These days, everyone is trying to figure out how to connect with other people. It used to be simple, you just placed some advertisements in whatever newspapers or magazines that was most suited to your product, but now that world is becoming ever more irrelevant. So how do you connect with other people today? And more importantly, how would you do it tomorrow? Let’s take a little tour through the history of how media evolved over the past 10 years.
  39. 39. Source:  h"p://www.baekdal.com/media/market-­‐of-­‐informa8on   In the early 19th century, the only way to get news was face-to-face communication but that started to change with the advent of printed newspapers and magazines in the 1900s. Then came radio, followed by Television which still dominates the medium but people are quickly moving away from traditional media as Internet websites and social networks are fast becoming primary sources of news and information. Rise of social media as a local business resource
  40. 40. Rise of social media as a local business resource h"p://searchenginewatch.com/3635350 In 2007, social media and mobile topped the "primary sources" of local business information. Consider that consumers use them every day or a couple times a week and you’d realize that makes up a good mass of audience known or unknown to your company – that means you could even tap on and reach audiences you never targeted for or knew existed. This chart here shows the growing activity on social networking sites and wireless devices. In this case, it's a reason to keep emerging advertising opportunities in social and mobile channels on your radar, but of course, this doesn’t mean the end of offline media, as research shows newspapers still remain a daily source of news for 16 percent of more than 2 million people surveyed last year.
  41. 41. Timeline I’d say this is a very clear timeline of how mass communication has radically evolved. Once upon a time, it took millions of dollars to reach a few, but today, it takes very little to reach millions of people with the viral nature of social networks. Year over year, more digital channels become available to more consumers. So it's no surprise that the feedback loop between advertising companies and their audiences are stronger than before the virtual network existed – the ease and speed of carrying out market research for example, is certainly one of the greatest cost-effective advantages a company with social media presence have over others relying solely on traditional mainstream media.
  42. 42. Social Media Marketing  Social Network Sites Categories  General (Facebook, MySpace)  Portal affiliation (MSN, Yahoo)  Vertical (Livejournal, interest-based sites)  Behaviorally targeted ads 108% click-through rate compared to contextual ads Social media most commonly take the form of social networking sites online. Broadly they can be classfied in to three main types: General (Facebook and MySpace), Portal affiliation and Vertical (livejournal, specialist blogs, forums.) Being online, social networking sties make tracking consumer behavior much easier and this is important because Behavioral targeted ads. 108% click-through rate.
  43. 43. Social Media Marketing  Promote WOM discussion of products - increase currency  70% recommended favorite brands to friends and family.  Relies on momentum effect  Increased exposure as friends will introduce as well as the company And additional benefit of social media is its ability to Promote WOM. 70% survey by Edelman. The very nature and structure of social media allows for the discussion and sharing of messages- including advertisements and hence the product they revolve around. It is important to realize however that real success of an ad on social media relies on momentum effect to spread the ad and its message to as wide a range of people as possible as well as to do so in a persuasive fashion.
  44. 44. What tips a trend?  Law of the few  Mavens  Salesmen  Connectors  Stickiness  Inspires action  Power of context This bring us to our next concern which is what tips a trend in social media? The first thing is the law of the few. Mavens: the information holders. They know a lot about all kinds of stuff. These are the guys you run to for an opinion when your dies and you need to get it fixed ASAP or have to try and figure out what to get as a replacement. Salesmen: the persuaders. They may not be the most knowledgeable or know the most people but they can really sell an idea. Connectors: they know EVERYBODY. Lots of network connections. Only one of the “Few” who is easily recognizable off an SNS (hint: they’re the ones with the most friends.) Identifying the few as a possible area of future research. You could short circuit it with celebrity endorsements but as your market fragments you might end up having to get a LOT of them. Also too top-down. Would kill the next two requirements. One of which is stickiness. This refers to the ability of the message to inspire action on the part of the viewer. This action can be to spread the message further or to actually try the product. Either way, the action will generate more awareness for the product the ad is pitching. Finally there is context. In a nutshell, context refers to the need to have the right combination of factors and settings to allow the few to feel enthusiasm for, have knowledge about and control over the message to encourage them to build communities. Really gets viral now.
  45. 45. Pitfalls in Social Media • Privacy- the “Creepy factor” • Facebook- everything you could possibly do wrong. Increasingly internet advertising makes it possible to tailor ads to increase the click-thru rate of users. This can be achieved through tracking user behaviour in a variety of ways. But with this kind of targeted advertising comes the dark side of social media advertising: the “creepy factor”. But when people share large amounts of personal information online, it’s often with the expectation that nobody will be interested in them or watching what they do. At the very least they expect the information they share to held only by the company they’re sharing it with. (No third parties!) Facebook provided user information to third parties through apps. Farmville (Zynga) affected. Not unusual for data tracking to cover real-time activities on a site but information tends not be connectable to user’s real name. No unique personal identifier. Facebook however made such tracking information available and provided advertisers/ marketers access to the unique profile ID of users they were tracking- which at the very least gave these third parties access to the user’s name and photo. Part of a long, bad track-record. Started with making privacy settings naturally lax and opt-out rather than opt-in so that default setting was to share a lot of information. Then there was the Beacon fiasco where Facebook linked with other sites and shared user purchases on their Facebook profiles. Advertising potential but tremendous public backlash. Online social media advertising ecosystem needs to be fostered so everyone in the value chain benefits relative to their contribution. While the potential is immense, there are also significant risks and potential challenges that need to be tackled before the industry evolves into a vibrant advertising medium. Once you start mining user data, significant profile information can be developed. Then how that information is used and by whom becomes an issue, and a significant legal minefield. In addition, if the industry doesn’t want regulators to get involved, the security policies and procedures need to be in place to protect the data from theft or misuse.
  46. 46. CASE STUDY Tracing the Evolvement of Advertisement Distributing Channels for McDonald’s Very quickly, let’s look at the many advertisement distributing channels McDonald’s engaged in over the years.
  47. 47. Television Commercials During its early days, television was a great distribution channel because it reaches many households and TV commercials were effective in retaining people’s attention. Beyond and out of the household, McDonald’s is known for their outstanding creativity in their outdoor advertisements.
  48. 48. Outdoor Advertisements Switzerland Munich This is a picture of a zebra crossing in a crowded street in Switzerland where the lines were painted to look like French fries. And the picture on the right, is a standup at a busstop in Munich to portray the freshness of McDonald’s.
  49. 49. Japan United States Denmark And as the printing industry advanced, outdoor billboards were put up, all over the world on highways and train stations – places where they can get the most number of eyes to watch the ads.
  50. 50. Ambient Media Thailand This is one on a busy street in Thailand, where the shutters of a coffeeshop come down at night to reveal a 24-hour McDonald’s poster, telling people that there’s a Macs somewhere very nearby whenever they are hungry.
  51. 51. Ambient Media Sydney With the amount of resources McDonald’s has, it is capable of greater things. This is a picture of a large makeshift playground at a central business district in Sydney. Adults heading to work were free to go on these slides. At that time, McDonald’s was spreading a message that went along the lines of “you are never too old to play, or to go to McDonald’s.”
  52. 52. India France Print Advertisements McDonald’s continue to advertise via print in well-circulated magazines and newspapers. While at that, they were still very capable of being creative with their advertisements.
  53. 53. Newspapers Sweden Canada These newspapers were distributed wrapped up like a burrito McDonald’s was launching for the first time.
  54. 54. Canada This one in Canada, which makes use of a subliminal aesthetic cue, was most well-received, not only because it wasn’t obtrusive for the reader, the image of a packet of fries (or the burger here) was also clear to whoever could see it from far.
  55. 55. Going wireless…Free  Wi-­‐Fi  at  all  restaurants In 2003, McDonald’s introduced wi-fi, making it a pioneer among its competitors. It has the largest Wi-Fi network in the US, beating #2 Starbucks, by several thousand locations. Today, McDonald's is still the only big fast food chain offering company-wide wireless Internet.
  56. 56. Viral Campaigns on Social Media •-­‐  Transcends  adver8sing •-­‐  Advocate  social  values Germany •-­‐  Enhance,  value-­‐add  to  brand  name h"p://www.youtube.com/watch?v=yk-­‐ C5cZDYgs&feature=player_embedded   For instance, McDonald’s launched an anti-littering campaign in May ahead of the FIFA World Cup 2010 in Germany, to encourage young residents of urban areas not to throw litter around. Via facebook, youngsters could map their own face into a video and kick the trash in the bin to win tickets for the Fifa World Cup in South Africa. We can see that this form of an outreach transcends advertising to advocate social values amongst their target audiences – in this case, the youth. Many times, companies also look at a bigger frame to get involved in some corporate social responsibility initiatives to enhance and create goodwill for its brand name.
  57. 57. Twitter of late, is also a great avenue for McDonald’s to reach to people who are always on the go, yet who stay connected all the time. You’d be surprised that in some countries, even its McCafe has its own twitter account to announce promotions or free giveaways to all potential consumers.
  58. 58. If you are an Advertising Manager... • Are you still trying to get journalists to write about your products?  • Are you still making websites?  • Is your social networking strategy to 'get a Facebook Page'? • ...or... • Are you making yourself a natural part of people's stream of information? So, if you are an advertising manager today, will you still try to get journalists to write about your products? Are you still making websites? Is your social networking strategy to 'get a Facebook Page'? Or, are you making yourself a natural part of people's stream of information?
  59. 59. IN-CLASS POLL Are you a Smart Phone User? *Wave your phone... *UNFREEZE* So, time for reflection paper. I’m kidding. Okay, need your help. We are doing a survey. How many of you use smartphones? iPhone, blackberry, android etc. Do you have your mobile phones with you? Can you raise it in the air. If you have a blackberry, wave.. If you have an android, wave. If you have an iPhone, wave.. Hey, I have a msg, it says that it’s for Dr Chung. to read out aloud to class, and she will win a drink... *FREEZE* (Someone please pass the phone to Dr Chung to show that its an advertisement blast going through the classroom)
  60. 60. Location-Based Advertising April  16,  2010:  McDonald’s  Foursquare  Day McDonald's  saw  33%  increase  in  check-­‐ins  via  a  very  small  $1,000  foursquare  campaign Wow! it seems Hons.ly has emerged as a winner in making itself a natural part of people’s stream of information! Let’s revisit the McDonald’s case study to see how they did it. Location based advertising On April 16, 2010, McDonald's used 100 randomly awarded $5 and $10 giftcards as a check-in bait to lure in potential diners - via Foursquare. You can see the result in this graph. Some people critiqued that this entire campaign wasn't a part of a long term social media strategy. But through the sheer number of walk-ins, McDonald’s proved that they can influence people's behavior, using Foursquare, and that this might be a way to increase both sale and traffic in the future. Connecting people is key. And I think the real power of location based services is to focus on creating long term commitment and loyalty.
  61. 61. Current - Future trends  Location-based/mobile advertising  Global mobile subscriptions surpassed 4bn at year-end 2008 and are expected to approach 6bn by 2013, making mobile services an extremely relevant platform for advertising for mass audiences.  Revenue potential in Emerging Markets, with a particular emphasis on BRIC, Indonesia, Mexico, Romania, South Africa and Turkey. Current & Future trends Lie in location-based/mobile advertising. Global mobile subscriptions are expected to approach 6bn by 2013, making mobile services an extremely relevant platform for advertising for mass audiences. There is also revenue potential in emerging markets, with a particular emphasis on BRIC, Indonesia, Mexico, Romania, South Africa and Turkey as wireless technologies advance rapidly.
  62. 62. Huge growth reported in Emerging Market Mobile Advertising - creates a new revenue stream for telecom operators as well as for technology enablers and content developers - mobile advertising will play a key role in driving usage of paid mobile data services h"p://memeburn.com/2010/07/huge-­‐growth-­‐reported-­‐in-­‐ the-­‐south-­‐african-­‐mobile-­‐adver8sing-­‐market/ Huge growth reported in emerging market mobile advertising Especially in India, where a 98% growth in mobile internet network is seen in a short span of time between Q1 and Q2 of 2010. In some smaller and emerging markets like Ghana, growth is an astounding 654%. It shows, that this form of a location based advertising creates a new revenue stream for telecom operators as well as for technology enablers and content developers usually outsourced by the advertising company to cater to specific markets.
  63. 63. Wireless Advertising Technologies Source:  h"p://www.opengardensblog.futuretext.com/archives/2006/10/sell_phones_wha_1.html     Today mobile advertising spending worldwide is almost 5 times as much as compared to just 3 years ago. It is predicted that these figures will rise even more in 2012. In Japan and Korea especially, higher processing power handsets and 3G pipes also play a significant role in the adoption of rich advertising content.
  65. 65. Criticism Contradictory Campaigns: The case of Unilever http://www.youtube.com/watch?v=iYhCn0jf46U Dove’s Campaign for Real Beauty?
  66. 66. Mixed Messages, One Company: Dove vs. Axe http://www.youtube.com/watch?v=7YH38Vbo_BE&feature=player_embedded#!
  67. 67. Cultural Trespass  Homogenized, broad appeal messages fail to consider the impact on local cultures  Promotes consumption of Western products regardless of the culture’s needs or wants
  68. 68. Gershon(1997): The Transnational Advertising Agency: Global Messages and Free Market  Media Imperialism: “one way flow of media products and services from a few highly industrialized nations to Third World developing countries” (117)  Cultural trespass  Influence on national economic priorities  Dissemination of inappropriate products
  69. 69. Cultural Trespass: Skin  Unilever: the same corporate structure campaigning for “real beauty”, is at the same time marketing and promoting skin whitening  Fair and Lovely, Olay, Vaseline, Neutrogena, L’Oreal  GlobalIndustry Analysts reports the market for skin-whitening creams will grow to $10 billion by 2015
  70. 70. Lighter Skin = Privilege Multinational corporations are profiting from and further exacerbating ingrained attitudes which favor white skin, reflecting the historical caste-system stereotyping
  71. 71. Advertising Agencies While Eastern nations, like India, are trying to transcend this stereotype, advertising agencies are reinforcing it ….and by purchasing from subsidiary brands, North Americans are supporting it!
  72. 72. Influence on Theory of Rising Frustrations Advertising promotes consumption of luxury goods for people who can afford them, and induces frustration in those who cannot National Economic Priorities Directing attention away from development goals
  73. 73. Advertising of luxury goods in the Neglects needs Developing World targets the higher social-strata, yet these ads are visible to everyone of majority
  74. 74. Many citizens in Third World countries lack the ability to choose the best products Inappropriate Limited education and illiteracy inhibits the degree to which underdeveloped countries will use these products properly Products
  75. 75. Nestle  Plied mothers with free samples of infant formula until their own milk ran dry, after which they became forced to purchase costly commodity  Were not taught how to make the formula properly  Concerns about labelling
  76. 76. Prospective Solutions  Government regulation  Issue:how to reconcile responsible government without foregoing international trade?
  77. 77. Thank You! (We are currently looking for research assistants & interns. Talk to us during the break) So I think that’s all the time we have for today, but thank you everyone for witnessing the glory that is Hons.ly ad agency, the best and largest transnational advertising agency ever! Don’t forget to watch out for our next product, EnerGen-Z because we promise, it’ll be bigger and better than ever! Goodnight everyone!
  78. 78. Q&A
  79. 79. Possible Q & A questions  Itis worth advertising to small markets? (Take into consideration the increasingly fragmented audiences of today and the ability of social media to narrowcast.)  Isit practical for TNAAs to be so big given advertisements need to have a local flavor?  What are the benefits of TNAAs over large local companies?
  80. 80. Hons.ly, will it succeed?  Energen-Y  Mid-sized ad firm  Will probably be subsumed under a global agency  Surviving the competitive environment  In-house creatives insufficient  Strategies for online platforms