4202 master powerpoint tnaa oct 19


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4202 master powerpoint tnaa oct 19

  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 THE AD PEOPLE TRANSNATIONAL ADVERTISING AGENCIES JIAWEN Good evening Dr Chung and fellow classmates. Today, we will be presenting on Advertising. Let us introduce our academics – Dr Erica Ng, who specializes in the origins of TNAAs (transnational advertising agencies) and their effects, Dr Irving Lim, who has a PHD on Ethics of Advertising Dr Candice Lau, who is an expert on ad production and emerging markets and Dr Mei Lim, who is currently doing a research on advertising and social media. 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 green 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.
  2. 2. Advertising • Advertising informs and inspires consumers so they can choose how to enrich their lives • Advertising stimulates competition among companies • Advertising encourages product innovation • Advertising plays a part - through the process of sparking demand - in creating jobs in thousands of industries • Advertising enables an independent, pluralistic, affordable media, the very foundation of democracy itself • Advertising also subsidizes a large part of the entertainment industry - particularly sports, music, and theatrical events “Advertising is part of the information currency that drives international trade” (Gershon, 74)
  3. 3. +… Cont’d “A legal product should have the right to be promoted” (Hong Kong Association of Advertising Industries) • Not all products are harmful to consumer health, and not all products promote harmful consumption of needless products. • Some advertising can even promote women’s rights or encourage upper mobility of oppressed classes
  4. 4. Gershon(1997): The Transnational Advertising Agency: Global Messages and Free Market Competition • 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
  5. 5. Introducing HONS.LY AD AGENCY RIDZA [SOCIAL MEDIA KRISTINE STRATEGIST] [PROJECT HALEY MANAGER] [THE CREATIVE DIRECTOR] EUNICE TAN [THE INTERN] Haley – The Creative Director Kristine – Project Manager Eunice Tan – The Interns Ridza – Social media strategist
  6. 6. 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! (Video starts playing in the background) *Creative Director, Project Manager and Social Media strategist receives award and hugs each other* FREEZE
  7. 7. One Year Ago... Turning back time: Let’s look at what happened 6 months ago. One day, HONS.LY ad agency received a brief from a major ad client
  8. 8. Brief BRIEF: CREATE AN ADVERTISEMENT TO HELP ENERGEN-Y DRINK ENTER A LARGE EMERGING MARKET CALLED NM4202. DESCRIPTION: *Slide of Brief* (UNFREEZE) *Creative Director goes to Intern are instructs her to do data mining of 4202*
  9. 9. Male Data and Findings 8 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 -why facebook -how we used facebook and google -unethical stalking.
  10. 10. Privacy • Smart ads need to know their audience! • Need information • Data mining • Information for sale – Aggregate data? – FB sells access to unique identifiers • Consumer expectations
  11. 11. Risks  Privacy& data security: how mined information is used and by whom becomes an issue, and a significant legal minefield  Prevent data from theft or misuse  Advertising ecosystem needs to be fostered so everyone in the value chain benefits relative to their contribution. While  the  poten+al  is  immense,  there  are  also  significant  risks  and  poten+al  challenges  that  need  to  be  tackled  before  the   industry  evolves  into  a  vibrant  adver+sing  medium.  Once  you  start  mining  user  data,  significant  profile  informa+on  can  be   developed.  Then  how  that  informa+on  is  used  and  by  whom  becomes  an  issue,  and  a  significant  legal  minefield.  In  addi+on,   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  theA  or  misuse.  
  12. 12. 2. Ad production (Back to screen of award ceremony, reuse the slide with the crappy trophy) *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: When we were given the honorable task of marketing enerGEN-Y, I thought, what can I do to help this energy drink penetrate into a market dominated by drinks like H20, Redbull and Naughty G? I was at a lost indeed. But then I remembered what Advertising is all about – creating needs. Thank god for the other cultural industries, which has homogenized audiences’ needs these days! All I had to do was to look at the market report and pick out what the 4202 market yearned on, and then create an advertisement that will lead them to believe enerGEN-Y will help them achieve it. Its called Glocalization. Its like.. the new buzz word in the industry or something. *FREEZE*
  13. 13. Critiquing the Advertising Strategy • Gershon’s quote “change in the design of advertising messages from product information to persuasion-oriented campaigns that appeals to the emotions and psychological needs of the audience.” Theory group comes back in and critique on the different method of ad production
  14. 14. 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 !
  15. 15. Glocalization for the Chinese Market  China being the largest market  Therefore ad should have local celebrities and professionals well known in China to endorse product: could we have Kim E. Perry perform something for the Chinese market?  ‘Live’ testimonials from the rest 3. Promotion of products in Asians market *UNFREEZE* Project Manager: So anyway, as I was talking about Glocalization right? What a deep concept, let me pretend to understand it. Other than our awesome ad, we had a set of endorsement posters to complement our campaign. 4202 is a market consisting largely of Asians, and our research saw that they liked K POP. This explained why we had Kim. E Perry to endorse our drink! Of course, only big agencies like us have the connections to celebrities like them. Other than Kim E Perry, we also realized that 4202 is a market with people who aspire to be achievers in sports and their professional careers, which explains why we had a huge tennis star and Georgia Lee, oops, I mean Gorgeous Li to endorse our drink. Of course we were smart enough not to engage Jackie Chan this time round, given the fact that he endorsed the last 20 products we were marketing….So yeah, this is glocalization for you. Thinking globally but catering advertising messages to the local audience. *FREEZE* Candice - china etc.
  16. 16. Their economic growth provides great potential for TNAAs. Reasons for entering By breaking into emerging markets, TNAAs can increase market shares and increase profits emerging markets
  17. 17. Advertising in Emerging Markets Advertising in China
  18. 18. Recent Developments in the Advertising Industry in China  SinceChina joined the WTO in 2001, Chinese advertising profession is increasingly under global influences.  Foreigncompanies were initially required to operate in China as joint ventures with a local Chinese agency.
  19. 19. 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 easily • Two-tiered structure of the global advertising industry - Large Global Advertising Agencies - Hundreds of local agencies that serve smaller cities of China.
  20. 20. Recent Developments in the Advertising Industry in China • A combination of foreign direct investment and high economic growth, advertising expenditure has 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
  21. 21. CHINA'S TOP DIGITAL BRANDS  KFC  Nokia  China Mobile  McDonald's  Coca-Cola  Nestle  Alibaba  Pepsi  Nike  Samsung
  22. 22. Online Advertising in China
  23. 23. Consumer-Citizen • The role advertising has played and is playing in China’s gradual transformation into a consumer society • A political economy that promotes high salary and high consumption
  24. 24. Challenges Faced Marketing strategies being pursued by global advertisers to overcome various challenges: 1.
  25. 25. 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
  26. 26. 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.
  27. 27. Challenges Faced - Cultural & Linguistics Toyota
  28. 28. Challenges Faced- Political 2. 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.
  29. 29. Challenges Faced- Political  Advertising produced by multinational agencies for global brands frequently encounters strong feelings and attitudes on the part of the Chinese government.
  30. 30. 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 – Making fun of any political figure
  31. 31. 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
  32. 32. Pepsi Advertising China US
  33. 33. TNAA representative  Apartfrom tapping into emerging markets, our TNAA also aims to enter global markets  Social media blast (twitter & facebook)
  34. 34. Print screens of Facebook/Twitter groups
  35. 35. Existing Media Trends In  the  early  19th  century,  the  only  way  to  get  news  was  face-­‐to-­‐face  communica+on  but  that  started  to  change  with  the   advent  of  printed  newspapers  and  magazines  in  the  1900s.   Then  came  radio,  followed  by  Television  which  s+ll  dominate  the  medium  but  people  are  quickly  moving  away  from   tradi+onal  media  as  Internet  websites  and  social  networks  are  fast  becoming  our  primary  sources  of  news  and  informa+on.   These  days,  everyone  is  trying  to  figure  out  how  to  connect  with  other  people.  It  used  to  be  simple,  you  just  placed  some   ads  in  whatever  newspaper  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  do  you  do  it  tomorrow?
  36. 36. Source:  h*p://www.baekdal.com/media/market-­‐of-­‐informa:on   Current  challenges  in  adver1sing:  Fragmenta+on  of  audiences  and  media  op+ons Informa+on  load    Selec+ve  viewing:  TwiNer  –  people  choose  what  they  want  to  see  &  hear predicts  that  tradi+onal  media  repor+ng  on  newspapers,  Television  &  Radio  will  disappear  by  2020  to  be  replaced  by  social   news.  we  are  currently  in  the  middle  of  the  most  dras+c  change  since  the  inven+on  of  the  newspaper
  37. 37. Rise of social media as a local business resource h*p://searchenginewatch.com/3635350
  38. 38. Social Media Marketing  SNS Categories  General (Facebook, MySpace)  Portal affiliation (MSN, Yahoo)  Vertical (Livejournal, interest based sites)  Behaviorally targeted ads 108% click-through rate compared to contextual ads
  39. 39. Social Media Marketing  Promote WOM discussion of products- increase currency  Relies on momentum effect  Increased exposure as friends will introduce as well as the company
  40. 40. Trend-Tippers  Law of the few  Mavens  Salesmen  Connectors  Stickiness  Inspires action  Power of context
  41. 41. CASE STUDY Tracing the evolvement of advertisement distributing channels for McDonalds’
  42. 42. Television Commercials
  43. 43. Outdoor Advertisements Switzerland Munich
  44. 44. Japan United States Denmark
  45. 45. Ambient Media Thailand
  46. 46. Ambient Media Sydney
  47. 47. India France Print Advertisements
  48. 48. Newspapers Sweden Canada
  49. 49. Canada
  50. 50. Going wireless…Free  Wi-­‐Fi  at  all  restaurants
  51. 51. Viral Campaigns on Social Media •-­‐  Transcends  adver:sing •-­‐  Advocate  social  values Germany •-­‐  Enhance,  value-­‐add  to  brand  name h"p://www.youtube.com/watch?v=yk-­‐ C5cZDYgs&feature=player_embedded   Youtube  +  Facebook In  its  new  an+-­‐liNering  campaign,  launched  in  May  ahead  of  the  FIFA  World  Cup  2010,  the  global  fast-­‐food  chain  is  asking   young  residents  of  urban  areas  not  to  throw  liNer  around.  Youngsters  can  map  their  own  face  into  the  video  and  kick  the   trash  in  the  bin  to  win  +ckets  for  the  Fifa  World  Cup  in  South  Africa.
  52. 52. 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
  53. 53. SMS Blast  Send sms to classmates  Plant people in the crowd to exclaim at how the sms is intruding their privacy/personal space  RIDZA: “So do you all like my new iphone?...”
  54. 54. 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 On  April  16,  2010,  McDonald's  used  100  randomly  awarded  $5  and  $10  giAcards  as  check-­‐in  bait  to  lure  in  poten+al  diners  -­‐   via  Foursquare.  The  result  of  which  you  can  see  in  the  graph  below.   But  in  terms  of  tweets  then  McDonald's  claim  that  nearly  600,000  people  poten+ally  no+ced  it  via  TwiNer,  and  s+ll  only  719   people  reacted  to  it.  That  is  a  conversion  rate  of  0.12%,  which  is  below  most  click-­‐trough  rates  of  website  banner  ads  (not   very  impressive). Another  thing  was  that  this  en+re  campaign  wasn't  a  part  of  a  long  term  social  media  strategy.  It  was  a  test  by  people  who   hadn't  used  Foursquare  before,  and  who  wanted  to  see  whether  there  was  anything  in  it.  But  they  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.   Connec+ng  people  is  key I  think  the  real  power  of  loca+on  based  services  is  to  focus  on  crea+ng  long  term  commitment  and  loyalty.
  55. 55. 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.
  56. 56. 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-­‐adver:sing-­‐market/
  57. 57. Wireless Advertising Technologies • SMS • Short codes • Search • Mobile TV
  58. 58. Wireless Advertising Technologies Source:  h*p://www.opengardensblog.futuretext.com/archives/2006/10/sell_phones_wha_1.html     As we have seen in Japan and Korea, higher processing power handsets and 3G pipes play a significant role in the adoption of rich advertising content.
  59. 59. Criticism Contradictory Campaigns: The case of Unilever http://www.youtube.com/watch?v=iYhCn0jf46U Dove’s Campaign for Real Beauty?
  60. 60. Mixed Messages, One Company: Dove vs. Axe http://www.youtube.com/watch?v=7YH38Vbo_BE&feature=player_embedded#!
  61. 61. 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
  62. 62. 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
  63. 63. 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
  64. 64. Lighter Skin = Privilege Multinational corporations are profiting from and further exacerbating ingrained attitudes which favor white skin, reflecting the historical caste-system stereotyping
  65. 65. 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! Global Industry Analysts reports the market for skin-whitening creams will grow to $10 billion by 2015.
  66. 66. 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
  67. 67. Advertising of luxury goods in the Neglects needs Developing World targets the higher social-strata, yet these ads are visible to everyone of majority
  68. 68. 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
  69. 69. 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
  70. 70. Prospective Solutions  Government regulation  Issue:how to reconcile responsible government without foregoing international trade?
  71. 71. 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?