PerspectivesVolume 6
Dear Friends of Millward Brown,
In today’s fast-moving digital world Millward Brown continually leverages new
technologies.  For the past five years, we’ve published Perspectives, an annual
compendium of our perspective on issues weighing on the minds of marketers
around the world.  In our latest issue, we’ve gone mobile with the release of
our iPad magazine app, which we plan to update quarterly.  If you’re reading
this letter, you have already downloaded the app or the PDF from our website,
and you now have the latest Millward Brown thinking at your fingertips.
When I say we leverage new technologies, I mean that on so many more fronts
than just the mobile format we’re using to deliver thought leadership!  You’ll
see that nearly half of the articles in this edition of Perspectives touch on the
role of digital and mobile channels in brand building. We hope you’ll follow us
closely over the next year as we make a number of important announcements
about our enhanced digital capabilities. We see 2013 as a particularly exciting
year on this front.
This issue also features thinking on the fast growing BRIC markets,
neuroscience, and the art and science of brand building – from the importance
of brand ideals to our newly launched “Meaningfully Different” framework –
and how both create financial value for brand owners.
As always, we’d love to hear from you regarding the pressing issues on your
mind.  Our goal is to use the collective learning and amazing talent of our
teams, and our vast data assets to help you answer the big marketing questions
of the day.  Please do reach out to me or to any member of our extended team
– Millward Brown, Dynamic Logic, Firefly Millward Brown, and MaPS – with
suggestions on how we can best serve your evolving needs.
With warmest regards,
Eileen Campbell, Global Chief Executive Officer, Millward Brown
Eileen.Campbell@millwardbrown.com
WelcometoPerspectives
Contents
Volume 6
PointofView
PUBLISHEDARTICLES
KNOWLEDGEPOINTS
ChangingChannelswithConfidence
CreativeStorytelling:ForSponsors,anOlympicSport
IntegratedPlanning:StandingOutintheCloud
WhatWeCanLearnFromIconicBrands
SocialMedia:FansandFollowersAreanEnds,NotaMeans
WhyBrandPersonalityMatters
China’sTop50:MuchProgressButMoretoDo
NotJustDifferentButMeaningfullyDifferent
TheOverlookedPowerofMedia
Ideals:TheNewEngineofBusinessGrowth
Mobile:AnEffective-YetUnloved-MarketingMedium
EmergingLuxuryStrategies
EconomicGrowthDrivesBrandAwareness
TheRisingMiddleClass
LargeandOpenMarketOpportunities
BuzzMeansMoney
BrandPersonality
WhyOptimizationisPartDataandPartInstinct
OnlineBuildsBrands,IfYouKnowHow
China’sBrandChallenge
GlocalEvaluation:MeasuringEffectiveness
TurningBigDataintoBrandData
TheFutureofSocialForBrands
TurnOn,TuneIn,WatchOut
SocialMediaBestPractices
CreativeEffectiveness
IsYourBrand’sMarketingStrategy2042-Compliant?
ValueDriversModel:HowBrandsDriveValueGrowth
DoesYourBrandNeedSocialMediaandBrandFans?
EthnicTargetedMarketing:DoWeReallyNeedIt?
IncreasingOurBrainpower
DoTVAds“WearOut”
MarketinginUncertainTimes
HowShouldVoiceoversBeUsedInAds?
Aknowledgements
Point of View
While they are accustomed to changing the
creative content of their campaigns on a regular
basis, there is no automatic driver that encourages
the adoption of new media channels, and
marketers themselves may be disinclined to make
changes. Changing established media allocations
is risky; weighing the options requires time and
effort. The fear of making the wrong decision can
make exploration seem daunting.
But avoiding innovation carries its own risk.
The world moves forward, and those who don’t
advance with it will be left behind. Marketers
need a way to embrace change without being
swallowed up by it. How can they manage that
process?
In 2011, Jonathan Mildenhall, vice president of global advertising strategy
and content excellence at the Coca-Cola Company, introduced his company’s
new approach to investing in creative content. Coke is implementing a
model they call the “70|20|10 investment principle,” an adaptation of the
established 70|20|10 protocol for apportioning resources or investment.i
Mildenhall explained that in its quest to double the size of its business by
2020, Coca-Cola would apportion its communications spend as follows:
•	 70% would support low-risk, “bread-and-butter” content.
•	 20% would be used to innovate based on what has worked in the past.
•	 10% would fund high-risk content involving brand-new ideas.
We think this approach makes a lot of sense. It has worked for Google, where
the company implemented it as a way to manage innovation, applying 70%
of its workforce effort to core businesses, 20% to adjacent products, and
10% to highly experimental innovation for the long term.
We expect it will also work for Coke as they innovate in developing their
creative content. Furthermore, we think that the application of 70|20|10 can
go beyond creative content to media planning, specifically in terms of the
allocation of resources to new channels such as mobile and social media. In
fact, we believe so strongly in this approach that we are proposing it to our
clients as the framework they can use to“change channels with confidence.”
DUNCAN SOUTHGATE
Global Brand Director, Digital
JOHN SVENDSEN
Global Brand Director, Media
Point of View
New media channels are emerging all the time, and
marketers are often unclear how to choose among them
ChangingChannelswith
Confidence:AStructurefor
Innovation
A Structured Approach to Innovation
Amara’s Law ii states that“we tend to overestimate the effect of a technology
in the short run and underestimate the effect in the long run.”The adoption
of a 70|20|10 approach is a way of counteracting both of these tendencies.
However, the 70|20|10 model should not be considered a strict formula.
The precise allocations are not important; what is essential is that some
fixed proportion of spend is regularly devoted to innovation. This practice
will encourage forward thinking and experimentation in a disciplined and
structured way. By using such a framework, brands can steer a safe and
prosperous middle path while evolving both their media and their research
budgets.
While 70|20|10 is new as a formal framework for media planning, some
brands have already experienced great success in applying its principles.
One example is Sheilas’Wheels, a UK insurance brand targeted at women.
When their first offering, car insurance, was launched in October 2005,
the brand invested 30% of its TV budget into sponsoring drama. This was
considered innovative at a time when most insurance brands focused almost
exclusively on TV spot advertising. This venture helped Sheilas’ Wheels
reach an awareness level of 75% just three months after launch, and to
surpass its internal sales targets by 65% during the first year. Sheilas’Wheels
subsequently expanded its sponsorship allocation, and in 2008, when the
company launched its home insurance product, it made sponsorship its
largest platform by investing £10 million (equivalent to US$20 million) in one
of British television’s biggest sponsorships slots: the ITV National Weather
broadcast. Thus in a short time, sponsorship became an important. 70%
activity for the brand.
The 70|20|10 Allocation
70% – The Comfort Zone
For most brands, the 70% zone of low-risk, bread-and-butter marketing is
likely to involve established channels such as TV, print, outdoor, and radio.
But this will vary across categories and countries. A strong FMCG/CPG brand
in the United States might use TV, outdoor, online display, and online video.
A brand in a considered purchase category in Germany might use print,
sports sponsorship, online search, and online display. A new service brand
in Japan might use TV, event sponsorship, mobile display, and QR codes. For
some brands, the 70% could also include word-of-mouth marketing.
But to say that 70% of the budget should fund communications in channels
that are considered to be safe, familiar, and effective is not to say that 70%
of a media budget should remain static from year to year. Based on ongoing
learning and evolving brand objectives, channel composition within the
70% could vary significantly over time and from campaign to campaign.
20% – Innovating Around What Works
Innovating around media approaches that are known to be effective could
include a broad range of options. It could mean taking a small risk, such
as increasing your spend on a channel that seemed to work well in your
10% last year. It could mean spending behind a channel where you don’t
have concrete research evidence of a return on investment. Or it could mean
taking a risk in an established channel that is familiar to you, perhaps by
sponsoring a sporting event for the first time when you have previously
been known for associations with music festivals.
For many brands across a range of categories, social media currently falls
into the 20% category. Brands have some practical experience and strongly
believe in the exciting new ways social media allows them to interact with
their consumers. But they still have questions about the return on their
investment, and they are still learning how to create and deliver campaigns
that are truly social by design.
10% – Into the Unknown
The 10% zone is the place where genuine experimentation takes place
with new and emerging channels. But this risk-taking should be in line with
brand and campaign objectives; iPhone apps and Pinterest pages are right
for some brands, but not all.
For many brands, mobile currently falls into the 10% category. The mobile
marketing landscape continues to evolve as ownership of smartphones and
tablets grows rapidly around the world, and questions abound about the
best ways to take advantage of these new opportunities.
CokeUKisreportedtohavea“mobilefirst”mentalityintheirplanningprocess.
Starting with the 10% not only ensures that 10% innovation happens; it
also ensures that these projects are given due consideration and a chance
to play an integral role in the overall campaign, rather than being seen as
afterthoughts.
Point of View
ChangingChannelswithConfidence:AStructureforInnovation
The 70|20|10 AND RESEARCH BUDGETS
Research and measurement are key drivers of innovation, so the 70|20|10
principleshouldbeappliedtotheresearchbudgetaswell.Table1summarizes
the goals and outcomes for both the media and research choices within
each of the three types of activity. However, as we stated at the outset, the
critical element of the 70|20|10 approach is the commitment to consistently
allocate resources to new channels, even if the proportions are not exactly
70|20|10. For research expenses, the proportions could vary widely, and they
might not be the same as the proportions used for media. For measurement
of the 10% and the 20%, you may end up“overinvesting”if research needs to
be created specifically to measure the return from a new channel. To really
understand how a new channel works, it may be necessary to spend as much
on research as on the media itself.
However, we are not suggesting that researchers can afford to take their
eyes off the 70%.
Even when the media used are known to be effective, learning from research
may call for incremental adjustments that will have significant effects. And
there are very compelling arguments for investing in research that can help
to optimize the mix across channels.
70|20|10 in Practice
When assessing how your current media budget stacks up against 70|20|10,
it is important to consider all the costs involved in a particular channel.
Projects in the 10% zone are likely to be relatively resource intensive even
if media costs are low. Therefore, to ensure that the 70|20|10 approach is
applied comprehensively and fairly across the full spectrum of paid, owned,
and earned media channels, brands need to weigh all the costs associated
with each channel, including not only hard media outlays but also the cost
of support, production, and organizational expenses.
In large companies, experimentation may be spread across brand portfolios
or markets. One sub-brand may attempt an augmented reality campaign
while another builds a mobile app. Pooling learning in this way improves the
breadth of experimentation possible and helps speed progress in identifying
the channels most likely to move from the 10% to the 20% in future years.
Research budgets will likewise go further if partners can be recruited.
Media agencies, media owners, and research agencies all have an interest in
understanding how new channels work and might be eager to participate
in joint projects.
Conclusion
Marketersconsiderchanneloptimizationeverytimetheyplannewcampaigns.
Some are actively involved in changing their channel mix, while others leave
these recommendations to their media agencies. Marketers that adopt a
70|20|10 approach will know that new channels will be given a chance to
shine and that their media plans will evolve through a systematic process.
By overlaying a comparable approach to research planning, companies can
ensure that they extract maximum learning from this process. Marketing
and insight-generation skills will evolve in parallel, and the ultimate result
will be a meaningful difference in brand success.
Point of View
TABLE 1
70│20│10 for Media and Research
Comfort Zone
(70)
Innovate on
What Works (20)
The Unknown
(10)
Goals
Reach target
with intended
messages.
Extend both
reach and
strategy.
See if it works!
Outcomes
Campaign
delivers as
expected against
plan.
A familiar
strategy is
extended, with
some ROI,
some pleasant
surprises.
Practical learning
and ideas for
the future, with
an occasional
runaway
success.
Goals
Evaluate
communication/
effectiveness of
media mix.
Identify media
impact.
Assess channel
potential/gain
ideas.
Type of
Research
Mainly
established
techniques.
Mix of newer
and established
techniques.
Brand-new
approaches,
trial and error.
Outcomes
Incremental
optimization
gains make a
large absolute
difference.
Optimize/extend
use of channel.
Winners and
losers identified
(failure of
campaign is
successful
learning).
ResearchMedia
ChangingChannelswithConfidence:AStructureforInnovation
Point of View
Beyondthetwoweekspackedwithexcitementand
good feelings, the 2012 London Summer Olympics
is set to leave its own lasting legacy for Britain and
the world.
The Power of Stories
The greatest legacy of the London Games, and of all
Olympic Games, is in their stories. The stories that
unfold during the Olympics turn into legends that
stay with us and inspire future generations. Stories
make us care. A powerful story can make us care
about a sport we’ve never watched, a person we’ve
never met, or a country we’ve never visited or even
located on a map.
Among the stories we witnessed this past summer: American swimmer Michael
Phelps becoming the most decorated Olympian ever; South African swimmer
Chad le Clos—who was 12 years old when he was inspired by Michael Phelps in
2004—beating Phelps in the 100-meter butterfly; Jamaican sprinter Usain Bolt
winning gold in both the 100 and 200 meters (and leading the Jamaican sweep
in that event); and South African “Blade Runner” Oscar Pistorius competing in
both the Olympics and the Paralympics. These athletes join icons such as track
and field star Carl Lewis, a gold medalist in four separate Olympics, and gymnast
Nadia Comaneci, still held up as an exemplar of perfection after scoring perfect
10s in 1976.
Marketers understand the power of stories. That’s why brands work so hard
to bring out their own stories on the world stage, from Coca-Cola celebrating
125 years of sharing happiness to Omega opening a museum dedicated to the
history of its watch brand. Brands are more than products we buy. Brands are
ideas we buy into. Stories, more than any other marketing component, facilitate
that process of“buying in.”
The Challenge of Olympic Sponsorship
The power to enrich brand equity by the values, stories, and associations
linked with the Olympic Games has brands forking out hundreds of millions
for the privilege of being called Olympic sponsors. But successfully activating
an Olympic sponsorship presents a unique set of challenges. First, there is the
challenge of being heard among so many sponsors vying for attention at the
same time. Then there is the issue of relevance. How does a brand contribute
to the Olympic ideal of “faster, higher, stronger”? How can sponsors prove that
their brands are relevant to the Games?
In their article “Building Brand Image Through Event Sponsorship: The Role of
ImageTransfer,”published in theWinter 1999 issue of the Journal of Advertising,
KevinGwinnerandJohnEatonrefertotwokindsofrelevanceforeventsponsors:
function-based similarity, where the sponsor’s product is actually used in the
event, and image-based similarity, where the sponsor’s image is convergent
with that of the event.
It is very easy for a sports brand to score
highly on functional relevance. If we
consider the 2012 Olympic sponsors,
Adidas was the only brand with a very
obvious and direct link to sports.
As the Official Sportswear Partner of
London 2012, Adidas led the way at
the Olympic Games by outfitting more than 80,000 “Games Makers” (Olympic
volunteers) and supplying kit for 3,000 athletes. The brand’s “Take the Stage”
campaign was very convincing, and Adidas was fortunate in being able to
sponsor some highly successful Olympians, including gold medalists Jessica
Ennis (heptathlon) and Bradley Wiggins (cycling). No wonder Adidas saw the
highest brand impact among the sponsors on many counts, including short-
term sales pickup. Research by Nielsen found that Adidas was regarded as
the most inspirational and most empowering brand among all the sponsors,
and social media research from Sociability identified Adidas as the brand that
created the most positive buzz during the Games.
For brands that don’t have an obvious functional connection to the Olympics,
it’s harder to justify the appropriateness of a sponsorship. This is where the true
art of marketing and creativity kicks in, especially in the form of storytelling. By
tellinggreatconvincingstorieswell,brandscancreateveryvisibleandsuccessful
sponsorship programs.
This past summer, the various sponsors told their different stories in different
ways, and some fared better than others. Here is my take on the results of the
Sponsorship Storytelling event:
The bronze medal goes to:
BMW, the Official Automotive Partner for
the London Games
The story of BMW’s Olympic sponsorship is in the mileage it got out of product
placement opportunities. One achievement was the showcasing of 4,000 cars
dressed in Olympic livery as“best in class”in terms of fuel economy. Even more
impressive was putting BMW-owned MINIs in view of close to one billion people
around the world during the Opening Ceremony. But the real coup was the
employment of a fleet of radio-controlled miniature MINIs used at the track and
field events. In a stadium that was brand-and advertising-free, as many as 80,000
spectators (not to mention the television audience) could see the adorable mini-
MINIs retrieving javelins, discuses, hammers, and shots, saving time and effort
and drawing smiles all around. On the back of this entertaining MINI-spectacle,
BMW rapidly climbed the table published by CityAM, jumping from fifth to third
place by the end of the first week of the Games.
Brands are ideas we buy
into. Stories, more than
any other marketing
component, facilitate the
process of“buying in”
Point of View
Anastasia
Kourovskaia
Vice President, Millward
Brown Optimor
Every two years, the world stops to watch the greatest show
on earth: the Olympic Games.The appeal of the Olympics is
universal; its impact, tremendous, and the London 2012
Summer Olympic Games were no exception.
CreativeStorytelling:For
Sponsors,anOlympicSport
The silver medal goes to:
BT, the Official Communications
Services Partner for the London Games.
The story of BT’s successful sponsorship has its roots in the company’s early and
unwavering enthusiasm for London’s bid for the Olympic Games. BT not only
provided IT and technical expertise during the bid process, but also worked in
a variety of ways to generate support for the bid among an ambivalent public.
Then, after being announced as the OfficialTelecommunications Partner of the
Games in 2008, they embraced the sponsorship opportunity, continuing to
beat the drum for the Olympics and Paralympics. Using minimal advertising,
they based their strategy on Olympic-themed activities, among them the
sponsorship of the National Portrait Gallery’s “Road to 2012” exhibition as
well as the sponsorship of a competition for would-be torchbearers. They
consistently celebrated milestones to the Games; the celebration of“1,000 days
to go” featured spectacular fireworks from the top of the BT Tower that were
broadcast around the world.
It looks like BT’s strategy of focusing on activation and taking the Games to the
people paid off, as on a modest budget BT generated over £60 million in media-
equivalent coverage and engaged with tens of thousands of consumers.
And the gold medal goes to:
Worldwide Olympic Partner Procter & Gamble
for their outstanding multilevel campaign
P&G took on a multilevel challenge with their sponsorship: to link both the
corporate name and a number of individual brands to the Games. And they
met the challenge with a brilliant and multifaceted campaign that garnered
acclaim from many sources. The shining centerpiece of P&G’s effort was the
corporate“Thank you, Mom”campaign, which featured both the P&G umbrella
and individual brands. Ads that focused on“the hardest, best job in the world”
paid tribute to mothers everywhere who sacrifice and work tirelessly to support
their children. “Mom-umentaries” that featured the stories of great athletes as
told by their mothers ran on TV and could also be viewed on Facebook pages
set up for 29 countries.
Brand-level campaigns continued with the theme of raising an athlete. For
example, ads for Fairy Liquid informed us that it takes 20,000 meals (and dishes)
to raise an athlete. A Pampers ad featuring beach volleyball gold-medalist Kerri
Walsh thanking her mom, Margie, achieved an unparalleled level of immediacy
and relevance when it ran during the break of one of Kerri’s matches. After
the Games, Pampers is continuing its “Spirit of Play” campaign, which features
Olympians and their young children.
P&G’s laundry detergent Ariel starred in the “Proud Keepers of our Nation’s
Colors” campaign, which was localized for countries from Mexico to Turkey,
Ireland to the Philippines. And as a Londoner, I was very impressed by the“P&G
Capital Clean-up,” a branded version of the annual Capital Clean-up, in which
P&G sponsored a number of branded clean-up activities prior to the Games.
LESSONS FOR ASPIRING SPONSORS
If you are a brand marketer who aspires to someday compete on the world
stage in sponsorship storytelling, what can you learn from the London Games?
How can you emulate the most successful sponsors? We have the following
suggestions.
Make your brand a part of the story
None of the brands on our medal
stand had a functional connection to
sports, but they found ways to weave
themselvesintotheLondon2012story
anyway. They looked for roles to be
filled and created parts for themselves.
BT was not only the communications
specialist, but also a lead cheerleader for the Games and for London. BMW not
only exploited the MINI’s heritage in evoking the home country’s pride, but
cleverly created a functional role for the MINI. So whether you’re sponsoring the
giant slalom, the Soap Box Derby, or a regional spelling bee, work your brand
into the story of the event.
Be creative
As Dominic Twose points out in his POV “Creativity in Advertising: Eyebrows, a
GreekBanquet,aViolin,andSomeInvisibleFish,”creativityaidsmemorability.The
right creative treatment can plant emotional associations so deeply that people
simply can’t forget them. The mini-MINIs delighted us and fixed an indelible
image in our memories, linking the cars to the Games. The P&G ads showing
pint-sized, baby-faced competitors preparing to dive off the platform or mount
the balance beam enabled us to see Olympic athletes as sons and daughters,
and that vision filled us with pride—both vicarious pride in the upbringing of
our national champions, and real pride in the hard work of rearing our own
children (with the help of products from P&G). Find a new and different way to
make your audience emote, or at least smile, and you have a chance to form a
lasting impression.
Go the distance
The successful sponsorships were the result of expansive vision and sustained
effort. BT started early and stayed in for the long haul. P&G extended its vision
across its brands—and rolled up its sleeves. It got behind the Capital Clean-
up campaign, and in its home country, the United States, committed to raising
$5 million to support youth sports programs. P&G may have sponsored the
Olympics,butitusedtheopportunitytolendsupporttootherongoingcauses—
national and civic pride, and support for young people.
Whether you’re sponsoring
the giant slalom or the
regional spelling bee, work
your brand into the story of
the event
Point of View
CreativeStorytelling:ForSponsors,anOlympicSport
Watch the‘Thank you Mom’ad (requiresinternetconnection)
Point of View
The Sponsorship Games: Play to Win
An Olympic sponsorship is a huge investment for a brand. And yet securing the
sponsorship is just the beginning. Sponsorship rights are the steep entry fee
you must pay for the chance to get your brand’s name on the program.
But tens of millions of dollars should buy more than just name recognition. To
form meaningful and lasting associations that will build your brand, you need
to dig deeper. Invoke the story of the event and knit your brand into it. Create
a relevant part for your brand, and the rewards will be great: When the race is
over, your brand will be embedded in the compelling stories that form the core
of our Olympic memories.
Invoke the story of the event and knit your
brand into it. Create a relevant part for your
brand, and the rewards will be great
CreativeStorytelling:ForSponsors,anOlympicSport
Point of View
In today’s world, it’s a certainty that brands will
encounter numerous uncontrolled interruptions as
they try to engage and persuade people.We need to
better grasp the reality of clutter and turbulence in
themoderncommunicationsworldandthedramatic
effects these phenomena have on advertising
impact. And though the term “the Cloud” is already
familiar in the context of Internet-based computing,
we think that a cloud is also an apt metaphor to
describethefluidandunpredictablemixofmessages
and influences that surround today’s consumers.
Clutter
It is a general trend that more clients are using more media to communicate to
more consumers in more ways. As Internet penetration grows worldwide, so
too do the opportunities to communicate, both for existing advertisers and for
new players who enjoy lower entry costs for marketing. Our estimates suggest
that Internet-enabled people experience at least 40 percent more display ads.
How many messages are getting lost in all this noise?
We all know about the evils ofTV advertising clutter, but for decades, even more
clutter has existed in radio, print, posters, and outdoor advertising. People have
become acclimatized to it and have become very good at detecting tiny bits
of relevance buried in masses of irrelevance. In response to still more clutter,
people simply—and unconsciously—gear up for a higher level of selectivity.
And we have seen the results. We have seen the impact different levels of TV
clutter have had across countries: The more clutter there is, the harder it is for
the average ad to cut through. Here the word“average”is important. Advertising
that resonates with its intended target can significantly outperform weaker
competition. But producing better-than-average advertising may be easier said
than done.
Turbulence
In the past, advertisers and their competitors would follow similar plans. They
would battle for hearts and minds across the same territories and time frames.
Today, however, the spread of messaging is becoming more diverse over both
media and time as clients mix individual campaigns with ongoing engagement
programs.
Advertisers have made these adaptations in response to changes in consumer
behavior. Through social and search media, people have more ways to talk to
eachotheraboutproductsandservices;nowadaysitiseasyforpeopletodotheir
own research or get advice from experts. A simple online search reveals a vast
new wealth of options to explore beyond actually buying the major mainstream
brands. One shopper might decide to buy the shop’s own brand since someone
told her it was just as good. Another might be attracted by the offer of a fun-
loving new category entrant. Someone shopping for vacation packages might
change course midstream and decide to build his own holiday, while creative
types might be inspired by an online forum to make their own hummus.
At any stage on the path to purchase, a shopper might veer off in a different
direction.There is no telling when or where a consumer might encounter a new
idea or a competitive or confounding message. As my daughter would say,“How
random is that!”How do you manage communications in such circumstances?
A New Model: Cloud Thinking
We think marketers can still succeed in this new world, but success will require
a new way of thinking, which will lead to a different model of communication
and messaging. We think a different paradigm is needed, one that focuses not
just on the consumer and the media, but also on the environment in which
today’s consumers exist.
In thinking about the complex infrastructure of tomorrow’s communications,
we like the aforementioned metaphor of a ”Cloud.”The Cloud is the composite
noise surrounding every person. Each individual’s Cloud consists of all the
influencesthatpersonisexposedtothatcouldpossiblyaffectbrandperceptions.
These influences could occur at any time at any place through any mechanism.
They include communication activities of the brand or its competitors, brand
experiences, things other people have said or written in the media, and in-store
Sue Elms
Head of Global Brands
Millward Brown
Point of View
Thereisnotellingwhenorwhereaconsumermightencounter
anewideaoracompetitiveorcofoundingmessage
Businesses spend a lot of money on brand communications
because they know that effective communications are
vital to brand health and wealth.The imperative is to
build brand preference among consumers and to hold
onto it in the long term. But the risk is greater than ever
that communication will not hit home or that it will be
counteracted by uncontrolled influences.
IntegratedPlanning:
StandingOutintheCloud
Point of View
In thinking about the complex infrastructure
of tomorrow’s communications, we like the
aforementioned metaphor of a ”Cloud.” The
Cloud is the composite noise surrounding
everyperson.Eachindividual’sCloudconsists
of all the influences that person is exposed to
that could possibly affect brand perceptions.
These influences could occur at any time at
any place through any mechanism. They
include communication activities of the
brand or its competitors, brand experiences,
things other people have said or written in
the media, and in-store activities.
The Cloud varies in density at different times and in different places, and is
continually in motion as the prevailing winds blow items closer to and farther
away from the person in the middle. The Cloud accompanies each person
through all of his or her daily activities, good and bad, fun and boring, planned
and unplanned.
“Cloud thinking” gives us much needed humility in thinking about people’s
consciousness of brands. At best, any one brand can make up only a very small
part of a person’s Cloud, and the pressure it exerts there will depend on the
frequency of its contacts as well as the degree to which people experience those
contacts as resonant.
Communications Principles for the Future
ThinkingaboutthecommunicationsinfrastructureasaCloudleadsustoidentify
a few key principles of communication planning.
Always understand the“now” of the brand
Strong brands need to stand for something, especially in this new, complex, and
interconnected world. But the Cloud makes it difficult for them. In the Cloud, it is
alltooeasyforevenstrongbrandstolosetheirclarity.Therearesomanypointsof
contact and so many conflicting impressions. So, as marketers focus on making
connections with individuals, they need to remember that few brands, and even
fewer consumers, are truly “clean slates.” Consumers will always synergize their
brand impressions against the prevailing associations in their personal Clouds.
Uncovering these associations—which form the attitudinal backdrop for a
brand—is the secret for brands hoping to resonate with consumers. This makes
it vital to always know the “now” of the brand—that is, what this attitudinal
backdrop is. This is why tracking in one form or another will become even
more vital as a marketing tool to understand the current intensity of people’s
emotions, knowledge, and experiences relating to a brand.
Identify the center of gravity
For long-established brands like Coke and Harley-Davidson, attitudinal
backdrops will have been created in the pre-Cloud era and will gravitate toward
a compelling center of gravity, such as a mass agenda or a brand ideal, that
enables people to instinctively recognize the brand and what it stands for
through whatever brand impression they encounter. Such iconic brands may
not need to spend time and money on creating new mass agendas. But new or
struggling brands do—and they need to find a way to build and maintain these
in the Cloud.
Plan for meaningful coincidences
Sometimes people make intentional contact with a brand, as when they use
it, buy it, research it, or discuss it with someone else (particularly when they’re
in a seeking mode). The more often this happens, the better off the brand will
be—as long as the brand meets expectations after it has been sought out and
acquired.Infact,forabrandnotto“bethere”whenandwherepeoplearelooking
for it is one of marketing’s biggest financial crimes.
Historically, we have been able to rely on television advertising to “prime”
consumers and encourage response to other brand activities. We have clearly
seen from CrossMedia evaluations that prior exposure to TV commercials
significantlyimprovesresponsetootherbrandactivities;atthesametime,these
other brand activities deliver deeper connections than TV can do alone. When
a job is tough—like a launch or repositioning—we have seen how important
multiple media exposure is. But in the new world, achieving these media
synergies within a defined time period is going to be more difficult.
A lot more effort will have to go into understanding people’s lives and
finding moments when they are “open” to the brand and when the brand’s
communications could be relevant to them. On the positive side, digital media
present increasing opportunities to be part of people’s lives in more places
and on more occasions, and should help advertisers by providing far more
contextually relevant opportunities to talk—e.g., on the bus, in a coffee shop, in
the pub, in a waiting room.
Maximize the impact of every contact
It’s hard for brands to push or pull Cloud-enveloped consumers directly, so
influence is more likely to come from small nudges as individuals run into a
multiplicity of brand connections in different orders over time. Communications
will have to give up the notion of storytelling in favor of facilitating the process
throughwhichconsumerspiecetogetheran
overall view from a long tail of connections.
The challenge will be to ensure that any
combination of elements, encountered in
any order, will be effective, and that any
gaps in exposure (even someone skipping
all TV ads) will not matter too much.
Though their specific tasks may differ, each
impressionmuststaytruetothecoreideaof
the brand, and must be designed to prime
and recruit other impressions in the Cloud.
It will be vital to find something that works
through every connection. Iconography,
symbolism, idiom, and implicit communication will become far more important
to support the delivery of powerful and synergistic brand impressions.
Throw away the“pseudo-scientific” media plan
Inthefuture,marketingcampaignswon’thavediscretebeginnings,middles,and
endings.Alreadyweseeamovefromcampaignstocontinuouscommunications.
Alreadywehaveclientsaskingustoevaluateongoingsocialprogramsintegrated
with long-term brand content, as well as sponsorship programs combined with
advertising activity to boost specific tasks. While there will always be plenty of
science in the evaluation of response to in-market exposure—digital media
measurement ensures this—planning will need to become more creative,
connected, and bold. Media planning will be about distributing various forms
of brand content that will be relevant to people in different decision states,
regardless of the order in which it is distributed. The end game will be“share of
Cloud.”	 We certainly look forward to seeing visualizations of expected market
impact that are far more inspiring than the current Excel worksheets of media
research numbers!
Conclusion
Cloud thinking helps us more easily embrace the complexity of the present
and future communications world, and embracing that complexity is essential
if we are to help brands succeed. Cloud thinking encourages planning that is
creative, connected, and bold, both within and across disciplines. As a result of
this new way of thinking and the planning it generates, brands will be able to
make solid and genuine connections with consumers in an environment that is
constantly in flux. Through those connections, brands can build the strong and
long-lasting consumer relationships that lead to financial success.
Communications will have
to give up the notion of
storytelling in favor of
facilitating the process
through which consumers
piece together an overall
view from a long tail of
connections
IntegratedPlanning:StandingOutintheCloud
The Cloud is the
composite noise
surrounding every
person. Each individual’s
Cloud consists of all the
influences that person
is exposed to that could
possibly affect brand
perceptions
Point of View
Yet among the mindless white noise of modern
marketing, a few brands stand out from the crowd.
Admired and packed with meaning, these truly
iconic brands inspire passion and fierce loyalty
among their customers. They represent the gold
standard of branding. Any marketer worth his salt
would die to work with an iconic brand—or better
yet, to help create one. But the process by which
brands become iconic is often more accidental
than designed.
In his book How Brands Become Icons, former Oxford University professor
Douglas Holt sheds light on the nature and origins of iconic brands. In that
work, he asserts that iconic brands respond to a society’s desires and cultural
tensions by drawing on their own unique myths and stories. However, the
anecdotal nature of Holt’s approach makes his findings difficult to apply to
less distinguished brands. And most brands cannot hope that a societal trend
or need will suddenly make their brand meaningful and result in its being
adopted as a cultural icon. So what universal themes apply to all brands, not
just those that are already iconic? What guidelines can be applied to make any
brand more successful? This point of view seeks to address those questions.
Beyond Recognition: Symbols and Meaning
One characteristic of iconic brands is that they are instantly recognizable. In my
2007 POV on iconic brands, I cited the familiar shapes of Legos, the VW Beetle,
and the golden arches of McDonald’s. The Oreo cookie, which turned 100
years old earlier this month, is another example—the dark embossed biscuits
sandwiching the white cream center make Oreos easily distinguishable from
any other cookie. Powerful visual cues such as these confer major advantages,
but recognition alone does not constitute iconicity. Advertising icons such as
the Pillsbury Doughboy, the GEICO Gecko, and Aleksandr Orlov (the meerkat
of comparethemarket.com) make their brands recognizable without making
them iconic.
The Oxford English Dictionary defines an icon as“a person or thing regarded as
a representative symbol of a culture, movement, etc.; someone or something
afforded great admiration or respect.” I believe this definition works well for
iconic brands; it suggests that they must not only be easily recognizable, but
also stand for something that people admire and consider meaningful.
In his book Brand Meaning, Mark Batey dedicates a lot of space to symbolism,
which, according to Batey, is one of the constituents of brand meaning.
Symbols like the Marlboro cowboy or the Harley-Davidson eagle stimulate the
imagination and, through the power of suggestion and association, connect
to ideas and values. It is the symbolic importance of an iconic brand’s identity
that enables it to leverage its recognition far beyond that of other brands.
And, once recognition has been achieved, that symbolism helps ensure that a
brand’s meaning is understood and shared across a wide audience.
Meaningiscriticaltosuccessfulbrandsandtoiconicbrandsinparticular.Iconic
brands are not just distinctive; they are different in a way that is meaningful.
The Oreo has a characteristic appearance, but it also stands out in people’s
minds for the sensory rituals they associate with eating it (twisting the wafers
apart and licking the cream, dunking in milk) and the warm feelings of sharing
those experiences with family and friends.
Those good feelings are kept alive with ads
that show people interacting over Oreos:
brother with brother, mother with son,
grandfather with granddaughter. These
idyllic depictions represent family life as
we might wish to experience it, and they
evoke a powerful response.
The second of Douglas Holt’s iconic brand
principles is that iconic brands develop
identity myths that address people’s desires and anxieties. The Marlboro
man represents the values of the Western frontier: He is strong, independent,
and capable. By presenting a consistent image over time, the brand has
come to embody the frontier myth that now proves particularly appealing
in developing economies. But Marlboro’s time as an iconic exemplar may be
nearing an end because, in Marlboro’s homeland, the nature of iconic brands
has changed. Instead of presenting identities that they grow into, some of
today’s most iconic Western brands embody those identities from the start.
Their identity myths have become experiential and vital. For example, Red
Bull was designed from the ground up to appeal to a specific mindset, and the
energy drink has been marketed with unique advertising and a wide variety
of adrenaline-inspired events.
Powerful visual cues
confer major advantages
for brands, but
recognition alone does
not constitute iconicity
Nigel Hollis
Chief Global Analyst
Millward Brown
Point of View
TheeasilydistinguishableOreocookie
In today’s complex and busy world, brand names are
everywhere—plastered all over websites, inside
subway cars, on the sides of buses, and even in public
toilets. But most of the time, even though they’re
accepted as part of the scenery, these brand names
don’t signify much to those who observe them.
WhatWeCanLearn
fromIconicBrands
A Compelling Brand Experience
An iconic brand is recognizable not because it has invested in decades of heavy
marketing spend, but because it delivers a powerful brand experience that is
founded in the brand’s purpose. Oreos would not be iconic if people didn’t
think they tasted good. And no matter how aesthetically pleasing Apple’s
devices are, Apple would not be iconic if its user interfaces were clunky. As Holt
proposes, iconic brands transcend functional benefits, but that does not mean
that they have ignored functional benefits (or that they can afford to ignore
them in the future).Therefore, in terms of evaluating a brand’s iconic potential,
I would first look at the brand’s ability to meet a specific functional need. A
brand that can meet a need or gratify a desire in a unique and meaningful
way has an opportunity to build the strong emotional attachment that is the
cornerstone of iconicity.
‘Meaning is critical to
successful and iconic
brands.Iconic brands are
not just distinctive; they
are different in a way that
is meaningful’
The “People’s Car”That Became an Icon
In 1933, Ferdinand Porsche was charged by German chancellor Adolf Hitler
to develop a car for the masses. Critical requirements in the specs for the
Volkswagen(literally,“people’scar”inGerman)includedtheabilitytotransport
two adults and three children at 100 km/h (62 mph) and a price that would
make it affordable for average working people.
Firstproducedin1938,theVolkswagenT1,laternicknamedtheBeetle,became
one of the most iconic vehicles of all time. The unique design was denigrated
by some, but after World War II, the reliable, economical, and affordable
vehicle was exactly what the impoverished people of Germany required.
Those same characteristics later appealed to hippies and others who were
pursuing alternative lifestyles during the 1960s. The Beetle appeared in many
movies and spawned a number of other nicknames, a sure sign of a brand
that’s embedded in popular culture. The 1998 reintroduction of the Beetle
was successful in large part because it tapped into those positive feelings
while bringing the product up to date.
The Power of Purpose
In combination with its quirky looks, the Beetle’s ability to meet people’s
transportation needs kindled the public affection that ultimately made the car
an icon. Look behind the symbolism of most iconic brands and you will find
someone with a vision of how a product could serve a specific need better
than the existing alternatives. When a brand’s purpose or ideal resonates with
a particular group of people, the brand moves one step closer to becoming
iconic.
Google originated as a research project by Larry Page and Sergey Brin, an
effort to find a better way to rank the relevance of search results than simply
counting the appearances of a search term on a page. By redefining the
way people used the web, Page and
Brin addressed the need to “organize
the world’s information and make it
universally accessible and useful.” The
intersection of the widespread need
to find information quickly with the
better solution offered by Google, which
included a simple and uncluttered user
interface, resulted in Google becoming
the success it is today.
In his book Grow: How Ideals Power Growth and Profit at the World’s Greatest
Companies (published in 2011), former Procter & Gamble CMO Jim Stengel
describes the common feature he identified across dozens of highly successful
brands: a brand ideal. A brand ideal is a purpose that goes beyond a product
or service. It’s the higher-order benefit that the business provides to the world,
the company’s most fundamental reason for being. Pursuing a brand ideal
may not make your brand iconic, but it can be one step along that road—a
step that, by offering people something that makes their lives better, will also
motivate your workforce and help to ensure a healthy profit.
Point of View
WhatWeCanLearnFromIconicBrands
Five Principles for the Everyday Brand
Reaching iconic status is the Everest of the marketing world, and the vast
majority of brands won’t reach its summit. That said, continually referencing
and seeking to improve your brand’s performance against the following
principles can only bring benefits.
(Re)discover and stay true to your brand’s purpose
Many brands are founded and built around a specific purpose or ideal that
subsequently fades from sight as leaders lose track of what originally made
the company special. In these cases, restoring the original focus can often
turn a struggling brand around. But sometimes a company’s purpose has to
change because the world around it has changed, as when 20 years ago IBM
shifteditspurposefrommakingcomputersandchipstobuildingasmarterand
more efficient planet.This sort of transformation requires a total commitment,
as Louis Gerstner details in his book Who Says Elephants Can’t Dance? This
commitment includes the willingness to make changes to align structure with
strategy as well as ongoing reinforcement of the new purpose in both internal
and external communications.
Critically examine the experience your
brand delivers
You can have the noblest purpose in
the world but still fail to deliver against
people’s expectations. For example,
environmentally responsible (“green”)
brands want to ensure a better future for our planet, but all too often their
functional performance fails to satisfy consumers, or their price is so high that
trial is inhibited. One brand, however, stands out from other green brands in
the way in which it not only meets but exceeds expectations. The household
cleaning brand Method packs a one-two punch: Its nontoxic and sustainable
products are just as effective as traditional cleaners, and Method’s unique
design ethos enhances its products with packaging that is both distinctive
and beautiful. These qualities could help Method become an iconic brand.
Identify the iconic elements of your brand
Iconicbrandsareinstantlyrecognizable.Howdopeoplerecognizeyourbrand?
What are the specific cues that trigger recognition? Does your brand have a
distinctive design? Which senses does your brand engage beyond just the
visual? A brand with powerful sensory cues has an intrinsic advantage over
others. Those cues ensure that positive associations come readily to mind and
are linked to the right brand. Provided the same recognition cues are featured
in broadcast and in-store communications, they allow the brand to realize
synergies across marketing and sales channels.
Balance the authentic with the contemporary
Thepowerofabrand’sauthenticheritageisundeniable,butsotooisthepower
of being in sync with popular culture. One of the biggest challenges for any
brand is to stay contemporary without unnecessarily changing what the brand
stands for. The brands that do this successfully manage to apply the stories
and values of their heritage to contemporary circumstances. For example,
Jack Daniel’s, an integral part of today’s pop culture, features its heritage in its
advertisements with scenes of the whiskey being made. Company-sponsored
musicians and concerts that bring people together outside of the bar also
reflect the spirit and backcountry myths of the brand.
Stay focused
Faced with aggressive competition, fragmenting media, and ever faster
feedback, brand marketers can be overly reactive. It may seem that doing
something—even the wrong thing—is better than doing nothing. But if you
keep in mind what it is that your brand stands for, you can avoid this trap.
Knowing what is truly meaningful to your customers will help you choose the
right actions. By understanding the interests, desires, and beliefs of their core
consumers, brands can bring people together and facilitate unprecedented
levels of consumer engagement, pride, and activism. Red Bull, for example,
focuses all of its events on the idea of uplifting mind and body, offering both a
spectacle and an unparalleled experience that is true to the brand’s purpose.
Build on Sound Foundations
Even if you never get to work with an iconic brand, as a marketer you can
still apply the principles that underlie the success of iconic brands to help
your own brand grow its financial value. But before you invest your time in
trying to apply these principles, take a good hard look at your brand’s product.
Powerful symbolism and impactful advertising can’t overcome a mediocre
product experience.
Assuming the product foundation is sound, you can then safely turn your
attention to building a stronger brand. Make sure you understand your brand’s
purpose, the character it presents to the world, and its unique set of sensory
and symbolic properties. Then find ways to amplify what the brand stands
for across all the potential touch points. The combination of a meaningfully
different experience and distinctive brand assets will strengthen what your
brand stands for in consumers’ minds, and as that concept becomes stronger
and clearer, your brand will be more attractive to new users and inspire more
loyalty among existing customers.
TheRedBullenergydrinkhasbeenmarketedwithunique
advertisingandawidevarietyofadrenaline-inspiredevents
‘You can have the noblest
purpose in the world but
still fail to deliver against
people’s expectations’
Point of View
WhatWeCanLearnFromIconicBrands
Point of View
But not everything declined. In the realm of
social media, the number of Facebook users grew
dramatically, blog readership increased, and a new
phenomenon called Twitter exploded onto the
scene.
It’senoughtomakeyouthinkthatusingsocialmedia
is the latest and best way to effectively build your
brand. Many pundits suggest as much, and many
brands seem to be buying into the idea. Research
conducted in 2010 by Millward Brown and Dynamic Logic, in cooperation with
the World Federation of Advertisers, found that almost all marketers surveyed
(96 percent) expected to invest more time and money in social media in 2011.
However, only a quarter (23 percent) said they were confident about the returns
they get on these investments.
I think this uncertainty is warranted. Those who manage brands should look
before they leap. I believe that the race to utilize social media channels is
representativeofthesamesortofirrationalexuberancethatledthestockmarket
tounprecedentedheightsandallowedpeopletohavefaithinincomprehensible
financial instruments. For many brands, large-scale investment in social media
campaigns is likely to prove just as ill-advised and imprudent. In other words, I
think we may be witnessing a social media bubble.
The Power of Social Media
There can be no denying that social media can be an incredible vehicle for
change. For example, in 2009, a Facebook campaign prevented X Factor winner
Joe McElderry from doing something the previous four X Factor winners had
done—reach the top of the UK music charts. The campaign was started by
husband-and-wife team Jon and Tracy Morter as a protest against X Factor’s
monopoly of the Christmas chart.They encouraged people to buy“Killing in the
Name,” a 17-year-old track by American rock band Rage Against the Machine
(RATM).The news media picked up on the story, causing thousands of people to
join the campaign; the number of fans on the RATM Facebook page exceeded
800,000 (more than Google, Pepsi, or Wal-Mart).
What is more, those fans acted. In the crucial
pre-Christmas week, “Killing in the Name” sold
over 500,000 copies. While 19.5 million people
viewed the X Factor finale and 6 million voted for
McElderry, only 450,000 bought McElderry’s“The
Climb.”
What enabled the campaign to be successful?
Global qualitative research conducted by
Millward Brown Firefly has highlighted several
things that drive people to use social media.
People are looking for a sense of connectedness
and belonging, for an entertaining diversion, and
for a sense of control. The issues of control and
belonging seem central to the RATM campaign.
The effort had the authenticity borne of its grass roots. It was founded by real
people advancing a real agenda, and that agenda was one that tapped into a
current concern—the suspicion that“big business”was manipulating the public
psyche for its own ends.
The same concern helped ignite the Twitter storm centered on the phone-
hacking scandal at the UK tabloid News of the World. Shortly thereafter, the
168-year-old paper closed. Clearly there is power in social media—but can
Facebook or Twitter empower a consumer brand in a constructive way as well
as they can give voice to social outrage?
The Characteristics of Successful Facebook Brands
I undertook an analysis to address that question. I identified 12 brands that
have been held up for their effective use of social media: Southwest, Honda,VW,
McDonald’s,PizzaHut,Subway,KFC,Dunkin’
Donuts, Krispy Kreme, Starbucks, Coca-
Cola, and Red Bull. I related the number of
fans these brands had on their Facebook
pages (all had more than 250,000) to data
from Millward Brown’s BrandZ database
(specifically, U.S. data from 2009). I then
compared the results for these successful
social media brands with other brands in
the same product categories.
My first observation was that the five different product categories attracted
very different numbers of fans. On average, the soft drink brands included in
our BrandZ study had over 16,000 fans each while airlines had barely 1,000.
But not everything declined. In the realm of
social media, the number of Facebook users grew
dramatically, blog readership increased, and a new
phenomenon called Twitter exploded onto the
scene.
It’senoughtomakeyouthinkthatusingsocialmedia
is the latest and best way to effectively build your
brand. Many pundits suggest as much, and many
brands seem to be buying into the idea. Research
conducted in 2010 by Millward Brown and Dynamic Logic, in cooperation with
the World Federation of Advertisers, found that almost all marketers surveyed
(96 percent) expected to invest more time and money in social media in 2011.
However, only a quarter (23 percent) said they were confident about the returns
they get on these investments.
I think this uncertainty is warranted. Those who manage brands should look
before they leap. I believe that the race to utilize social media channels is
representativeofthesamesortofirrationalexuberancethatledthestockmarket
tounprecedentedheightsandallowedpeopletohavefaithinincomprehensible
financial instruments. For many brands, large-scale investment in social media
campaigns is likely to prove just as ill-advised and imprudent. In other words, I
think we may be witnessing a social media bubble.
The Power of Social Media
There can be no denying that social media can be an incredible vehicle for
change. For example, in 2009, a Facebook campaign prevented X Factor winner
Joe McElderry from doing something the previous four X Factor winners had
done—reach the top of the UK music charts. The campaign was started by
husband-and-wife team Jon and Tracy Morter as a protest against X Factor’s
monopoly of the Christmas chart.They encouraged people to buy“Killing in the
Name,” a 17-year-old track by American rock band Rage Against the Machine
(RATM).The news media picked up on the story, causing thousands of people to
join the campaign; the number of fans on the RATM Facebook page exceeded
800,000 (more than Google, Pepsi, or Wal-Mart).
What is more, those fans acted. In the crucial
pre-Christmas week, “Killing in the Name” sold
over 500,000 copies. While 19.5 million people
viewed the X Factor finale and 6 million voted for
McElderry, only 450,000 bought McElderry’s“The
Climb.”
What enabled the campaign to be successful?
Global qualitative research conducted by
Millward Brown Firefly has highlighted several
things that drive people to use social media.
People are looking for a sense of connectedness
and belonging, for an entertaining diversion, and
for a sense of control. The issues of control and
belonging seem central to the RATM campaign.
The effort had the authenticity borne of its grass roots. It was founded by real
people advancing a real agenda, and that agenda was one that tapped into a
current concern—the suspicion that“big business”was manipulating the public
psyche for its own ends.
The same concern helped ignite the Twitter storm centered on the phone-
hacking scandal at the UK tabloid News of the World. Shortly thereafter, the
168-year-old paper closed. Clearly there is power in social media—but can
Facebook or Twitter empower a consumer brand in a constructive way as well
as they can give voice to social outrage?
The Characteristics of Successful Facebook Brands
I undertook an analysis to address that question. I identified 12 brands that
have been held up for their effective use of social media: Southwest, Honda,VW,
McDonald’s,PizzaHut,Subway,KFC,Dunkin’
Donuts, Krispy Kreme, Starbucks, Coca-
Cola, and Red Bull. I related the number of
fans these brands had on their Facebook
pages (all had more than 250,000) to data
from Millward Brown’s BrandZ database
(specifically, U.S. data from 2009). I then
compared the results for these successful
social media brands with other brands in
the same product categories.
My first observation was that the five different product categories attracted
very different numbers of fans. On average, the soft drink brands included in
our BrandZ study had over 16,000 fans each while airlines had barely 1,000.
I believe this is directly related to the number of people who are actively
involved with a category on a regular basis.The level of satisfaction with brands
in a category also seemed to correspond with the number of fans the category
attracted. Only 18 percent of U.S. air travelers are satisfied with the brands
available to them, while 56 percent of soft drink buyers claim to be totally
satisfied with their brand choices.
In using social media,
people are looking for a
sense of connectedness
and belonging, for an
entertaining diversion,
and for a sense of control
Nigel Hollis
Chief Global Analyst
Millward Brown
Point of View
‘XFactor’winner
JoeMcElderry
The last few years have seen some massive changes
in our world.The financial bubble that reached its
peak in 2007 popped, leaving us to enjoy what has
been dubbed“The Great Recession.”The Dow Jones
plummeted, along with consumer confidence.The
subsequent road to recovery has proved to be long
and uncertain.
Socialmedia:fansandfollowers
areanend,notameans
Figure 1
Successful social media brands tend to be stronger brands
	Presence
	Relevance
	Performance
	Advantage
	Bonding
					 Successful Brands		 Other Brands
81
66
53
44
54
43
37
26
11 2
My next observation was that in most categories, one or two brands attracted
the lion’s share of fans. Those brands are not necessarily the biggest or the
oldest, but rather the ones with a distinctive positioning that sets them apart
from competitors. For example, in the case of domestic U.S. airlines, Southwest
is the dominant brand, followed by Virgin America, a newcomer to the
United States. I believe that Virgin’s
commitment to excellent service and
customer satisfaction and its obvious
commitment to using social media are
whatenabledittodrawmorefansthan
American Airlines, United, or Delta.
My final observation was that the
playing field did not appear to be level
for brands competing on Facebook. It
seemed easier for some brands to gain
traction simply due to their product category and their positioning. But there
is an even larger obstacle to be overcome by many brands. Brands that are
already big and successful start with a major advantage in social media. Using
the Millward Brown Brand Pyramid, I compared the composite brand equity
of the two groups of brands (see Figure 1). The successful social media brands
started with 50 percent more Presence (familiarity with what the brand stands
for) and finished with five times as much Bonding (the strongest measure of
attitudinal loyalty).They had an average of 1.6 million fans each, while the other
brands had an average of just 140,000 fans each. So the more loyal customers
you have, the more fans you tend to have on Facebook.
Mass Exposure Is an Important Catalystto Social Media Success
One final element must be considered by brands thinking of marketing
through social media: the need for mass media coverage. Most notable social
media campaigns have relied on the mass media to gain critical momentum.
Analysis of Twitter by HP’s Data Central finds that mainstream media outlets
act as feeders of the most popular trends, and regular Twitter users then act
as trend amplifiers. The Rage Against the Machine campaign would likely have
languished unnoticed by the vast majority of people if the traditional media
had not picked it up and publicized it.The same is true of some of the classics of
viral marketing: Burger King’s“Subservient Chicken”benefited from widespread
media support, and Dove’s “Evolution” was boosted by a strong PR campaign.
On its own, Twitter did not kill the News of the World, but it did help create
enough noise to pressure advertisers into pulling their support from the paper.
Integration of mass media and social media helps transcend the disparate
personal connections that drive social media in order to achieve critical mass.
In 2010, the meerkat Aleksandr Orlov was created to star in a TV campaign for
the UK financial comparison site comparethemarket.com. As of August 2011,
Aleksandr had close to 800,000 fans on the Facebook page that was created as
partoftheadcampaign.Thecombinationoftightlyintegratedonlineandoffline
marketing heightened interest in the brand, drove traffic to comparethemarket.
com, and increased quotes by 45 percent compared to the previous year.
Beyond Facebook
While Facebook is the biggest social media network, it is not a homogeneous
community, nor is it the only channel through which brands can connect with
consumers.Infact,MillwardBrownidentifieseightdifferenttypesofsocialmedia:
pure plays, blogs, syndication, peer-to-peer (P2P), wikis and collaboratives,
open source, tagging and rating, and consumer reviews. Each type serves
different purposes and audiences. Among the pure-play vehicles, a low-reach,
high-engagement medium such as Twitter offers the chance to make that all-
important ongoing and personal connection.
But Twitter users aren’t using the channel to be informed about brands. They
are using it because they want to hear from people. Brands with social media
savvy know this and often designate a lead tweeter to represent the company
and engage people. Tony Hsieh, the CEO of online shoe retailer Zappos, is the
archetypal corporate tweeter. With his tweets, which cover a wide range of
subject matter—from getting kids to eat vegetables to entrepeneurship to the
secret of living the good life—he engages people and gives them a sense of
personal connection with Zappos.
Socialmedia:fansandfollowersareanend,notameans
Point of View
It is the big brands that
get the most out of
Facebook.The more loyal
customers you have, the
more fans you tend to
have on Facebook
Fans and Followers Have Their Own Agendas
Dynamic Logic’s AdReaction 2009 study found that while 59 percent of Internet
users are actively engaged with social networking sites, only 13 percent of those
social media users actively follow or keep up with brands via social networks.
Those that do follow brands do so in an average of three categories, and they
do so to gain access to information, discounts, and giveaways.
This presents a challenge for a brand.
To pander to a small percentage of
your target with discounts and added-
value giveaways can undermine your
brand’s status and profitability; what
you should focus on is engaging
people with new information and
ideas that improve the customer
experience.
Build a Strong Brand and Fans Will Follow
Because people use social media to connect with people and brands that they
know, respect, and admire, the social media make a great channel for engaging
existing customers. But fans and followers are not a means to building a brand;
rather, they are an end. Social media can’t help build brands without the other
ingredients that make brands strong: an effective business model, a great brand
experience, clarity of positioning, and the ability to disrupt the status quo in a
product category.
As I stated in my Point ofView“Make Friends, Don’t PitchThem,”creating a strong
presence in social media is a good vehicle for confirming a brand’s benefits and
validating its commitment to its users. However, any marketers still considering
how to construct a social media strategy that will build buzz, saliency, and a
deeperengagementwithloyalbrandadvocateswoulddowelltoaskthemselves
the following questions:
Integration of mass media
and social media helps
transcend the disparate
personal connections that
drive social media in order
to achieve critical mass
Whatever your chosen strategy is, remember:There is no substitute for creativity
and consistency. Find an idea that will resonate with your target audience and
is in keeping with your brand’s positioning. Promote what you do widely, in
whatever ways are most appropriate. Then listen to the response and respond
in turn.
Do people care enough about my brand and category
to engage with it? If not, maybe social media is not a
priority for you.
What types of social media sites offer the most
potential?What would be the best bet—a pure play
or a blog? An active presence on multiple sites might
be necessary to engage even a small proportion of
existing customers.
What value can your brand offer beyond freebies and
discounts? Games, puzzles, and competitions were
popular means to engage people with brands long
before the advent of social media. Remember:While
social media may be a new communication channel,
the motivations, interests, and desires of the people
who use it are not new, but the same as they have
always been.
How do you sustain the initial engagement beyond a
simple sign of affinity? Even large, successful brands
must continually find new ways to engage fans that
are consistent with their basic appeal; otherwise the
novelty of“fandom”will quickly wear off.The research
conducted with theWorld Federation of Advertisers
found trust and transparency to be important to
ongoing engagement, while variation, innovation,
and a reasonable frequency of posting keep fans
coming back for more.
Socialmedia:fansandfollowersareanend,notameans
Point of View
Point of View
By combining key outputs of BrandZ and
CharacterZ and examining them in light of Geert
Hofstede’s model of the dimensions of culture, we
can identify the brand characteristics that are most
likelytoensuresuccessindifferentregions.Marketers
who hope to achieve global success for their brands
must take heed of these findings and use them to
modulate the tenor of their brands’communication
across local and global campaigns.
What We Mean by Brand Personality
When we speak of a brand’s positioning, we are
describing the things that differentiate one brand
from others.When we speak of a brand’s personality,
we are describing the way a brand expresses and
represents itself. In BrandZ, we have asked over
500,000 people to describe brands using a set of 24
adjectiveschosentocoverawiderangeofpersonality
characteristics. We then assigned each brand to one
of10archetypesaccordingtoitsdominantcharacter.
Developed using semiotics and both qualitative and
quantitative research, these archetypes allow us to
reduce a vast array of brand personalities to a manageable number of well-
defined and recognizable characters.
Some global brands are characterized differently in different parts of the
world. For example, in Italy, Spain, and the UK, the Apple iPhone is viewed as a
Seductress,butinAustraliaitisaJoker,andinJapan,aDreamer.Thisdiscrepancy
highlights the many factors that influence a brand’s personality. Not only do
consumers experience a brand’s marketing activities in light of their own values,
traditions, and circumstances, but they also perceive personality traits through
the lens of their cultural conditioning. Therefore it is imperative that marketers
pay attention to the personalities their brands project; few characters have the
power to transcend all cultures.
Figure 1: CharacterZ Attributes and Archetypes
Brand Strength Varies with Brand Personality
In BrandZ, one of the key measures of a brand’s strength is Bonding. Bonding is
the highest level of attitudinal loyalty; when people are bonded to a brand, they
feelthebrandiscloser,moremeaningfullydifferent,andhencemorevaluableto
them.When we correlated Bonding with our set of brand personality attributes,
we found a range of significant results—from high positive correlations to
surprisingnegativecorrelationsthatassociatedpersonalitytraitswithweakness
rather than strength.
Two Global Success Traits
Two of the 24 words used to describe personality correlated with Bonding
significantly more than all the others: desirable and trustworthy. Though both
these words had strong correlations everywhere, their importance relative to
one another did vary in some markets, as illustrated in Figure 2. Desirability,
which embodies qualities such as allure, status, and exclusivity, is particularly
associated with aspirational brands that have emotional resonance; it is a
notably strong driver of Bonding in Latin markets such as Brazil, Mexico, and
Spain. Trustworthiness, the attribute which underpins a consumer’s belief that
a brand will deliver consistent quality, is an especially strong driver of Bonding
in India, Russia, and Korea.
The Role of Other Personality Traits
Some words, such as innocent and rebellious, tend not to be associated with
the most successful brands. For example, the word innocent is often used as a
descriptor for brands that are neither well known nor well defined, while the
most successful brands (according to Bonding) tend to have strong clarity of
associations. Similarly, rebellious brands
are more likely to be seen as challengers
than as leaders. In Taiwan, being seen as too
straightforwardcannegativelyaffectBonding,
suggesting that in that country, cleverness
is appreciated by consumers. Table 1 shows
the countries for which each of these traits is
negatively correlated with Bonding.
InTaiwan, being too
straightforward can
negatively affect
Bonding, but cleverness
is appreciated by
consumers
Graham
Staplehurst
Group Account Director
Brands & Communication
Millward Brown
Suthapa
Charoenwongse
Associate Account Director
Millward Brown Bangkok
Innocent
Sweden, Spain, Mexico, Australia, Germany, Italy,
Netherlands,  Korea, USA
Different
Thailand,  Netherlands,  Sweden,  Australia, Germany,  
USA, Canada, UK, Italy, Japan
Rebellious China, Taiwan, Korea, Japan
Straightforward Taiwan, Korea
Table 1: Negative Correlations with Bonding
Point of View
For many years, researchers have been using the concept of brand
personality to help describe brands and understand how they relate
to consumers. More recently, using data fromWPP’s BrandZ study, we
have looked at brand personality from a cross-cultural perspective and
demonstrated that there is a relationship between the way brands
express themselves in different countries and the strength of the
consumer relationships they generate.
WhyBrandPersonalityMatters:
AligningYourBrandtoCultural
DriversofSuccess
Itwassurprisingtofindthatdifferentpersonalitieshadanegativecorrelationwith
Bonding in some countries, since the role of marketing is to create difference for
brands. But evidently, a different personality is not the same as a meaningfully
differentbrandexperience.Beingseenasdifferentinpersonalitytermssuggests
a lack of identification with consumers and some social or emotional distance
from them. The brands that are perceived this way fit less comfortably into a
market.
In the same way that the importance of trustworthiness and desirability varies
from one country to another, the degree to which other traits drive Bonding
also varies across markets. The personality traits (other than trustworthy and
desirable) that your brand will find most useful in different markets are shown
in Figure 2, below the country names. For example, friendly brands are more
successful in Brazil and India, wise brands do well in China and the United States,
and brands that are creative are especially well received in Japan, Taiwan, and
Korea.
Cultural Dimensions
Many of the differences we have observed in how people appreciate brands’
personalities can be explained through the cultural dimensions theory put
forth by Geert Hofstede, a researcher recognized internationally for having
developed the first empirical model to describe and differentiate cultures. His
model includes the following five dimensions:
•	 Power Distance: The degree to which members of a society accept and
expectthatpowerisdistributedunequally.Runsfromhigh(differenceaccepted)
to low.
•	 Individualism: The degree to which societies believe people share an
obligation for the care of those outside of their immediate families. Runs from
high (obligations to close family only) to low.
•	 Masculinity: The degree to which a society emphasizes the value of
achievement, heroism, assertiveness, and material rewards for success. Runs
from high (these values are important) to low.
•	 Uncertainty Avoidance: The degree to which the members of a society feel
comfortable with uncertainty and ambiguity. Runs from high (where people
need clarity and rules) to low.
•	 Long-term Orientation: The degree to which a society believes that truth
depends on situation, context, and time. Where long-term orientation is high,
people adapt traditions and are more likely to save, invest, and persevere.
Three Countries with Contrasting Cultural Preferences
Russia,China,andtheUKvarywidelyintermsofHofstede’sdimensions(seeTable
2).RussiaandChinabothscorehighonPowerDistanceandlowonIndividualism,
but they are on opposite ends of the scale on Uncertainty Avoidance (where
Russia is high and China is low).
The culture in Russia favors brands that are assertive and in control, while
also appreciating brands with a friendly and caring nature. In China, respect
for authority, coupled with a long-term orientation, enables brands with wise
and trustworthy personalities to dominate. Brands with assertive, rebellious, or
playful traits are less likely to be widely accepted by society, although emerging
generations of younger and more affluent consumers may change this.
In the UK, where there is an emphasis on individualism, tolerance, and respect
for equality (evidenced by the low Power Distance score), we see fewer strong
associations between any particular personality trait and brand success. The
two traits with the most consistent relationship with strong brands are friendly
and generous.
Implications for Global Marketers
While global communications and other marketing levers can help ensure that
a brand is positioned in a consistent way around the world, a single tone of voice
is unlikely to succeed in engaging consumers across varied cultures. Marketers
needtounderstandtheculturalcontextinwhichtheirbrandcommunicates;they
mayfindthattheyneedtovarynotonlywhattheysay,buthowtheysayit.Though
every brand will face a unique situation due to a number of factors, including
product category and country of origin, the following recommendations apply
to all brands:
1. Personality can differentiate.The strongest brands are those with the most
well-defined personalities. These brands have differentiated themselves by the
way they relate to consumers as much as by functional or other aspects.
2.Sometraitsarealwaysgoodtohave.Makesureyourbrand’scommunication
clearly shouts either desirable or trustworthy. Or, like BMW, DoCoMo, El Cortes
Inglés, or Emporio Armani, you may choose to emphasize both.
3. Give your brand a global personality check. Consider the culture in your
brand’s country of origin and that of the country to which you’re marketing. Use
BrandZ and CharacterZ to identify the brands that fit well in the specific cultures
that are most important to you.
Brand Personality Matters
Brand managers and advertising planners have long understood that their
brands are differentiated by the way they address their customers. Our analysis
goes beyond this to show that emphasizing particular personality traits can
strengthen or undermine a brand’s competitive position. If your brand has
a particularly strong personality, you may need to adjust its tone of voice to
match local cultural dynamics. Smart marketing practitioners will use research
to understand the role that their brands’personalities play in building consumer
relationships, and will apply that learning to maximize brand appeal around the
world.
Creative
Assertive
Straightforward
MEXICO
Creative
Assertive
Straightforward
Friendly
BRAZIL
Creative
Assertive
Brave
SPAIN
In control
Wise
Generous
USA
In control
Creative
CANADA
Friendly
Generous
UK
In control
GERMANY
Assertive
Idealistic
Generous
SWEDEN
Friendly
Adventurous
Caring
INDIA
Caring
Wise
Straightforward
THAILAND
In control
Generous
AUSTRALIA
Creative
TAIWAN
Creative
Wise
Kind
KOREA
Creative
Fun
JAPAN
Wise
Caring
Creative
Straightforward
Brave
CHINA
In control
Kind
Creative
ITALY
Straightforward
Friendly
NETHERLANDS
Assertive
In control
Friendly
Caring
RUSSIA
In control
Assertive
Creative
FRANCE
Desirable more important
Both equally important
+ other traits in order of importance
Trustworthy more important
Figure 2: Personality Traits Associated
with the Most Successful Brands
High Low
Russia Power Distance,
Uncertainty Avoidance
Individualism
China Long-term, Orientation, Power,
Distance
Uncertainty, Avoidance,
Individualism
UK Individualism, Masculinity Power Distance,
Long-term, Orientation
Table 2: Selected Dimensions for Russia, China, and the UK
Point of View
WhyBrandPersonalityMatters:AligningYour
BrandtoCulturalDriversofSuccess
Point of View
Whiletheyaregrowingwellathome,China’sdeveloping
brandsfaceaverydifferentenvironmentoutsideofChina.
In developed markets, these brands need to sharply
increase their levels of awareness and penetration. But
beyond that, to actually achieve profitable growth,
Chinese brands need to provide consumers with an
experience that is meaningfully different.
As we have seen in previous years with the BrandZ
Global Top 100, the share prices of strong brands greatly
outperform the average. This year’s China Top 50 ranking
provides another example of the value of this“brand gap.”
(See Figure 1.) While the MSCI China Index registered a 6
percent loss over the past 15 months, the China Top 50
brands were up 20 percent.
The New China: Fertile Ground for Brands
December 2011 marked the tenth anniversary of China joining theWorldTrade
Organization, and some observers say that a hundred years’worth of societal
and  economic  transformation has occurred in the decade since. Nearly 300
millionnewmiddle-classconsumershaveemergedtocreateagrowingmarket
that has allowed new brands to become established extraordinarily quickly.
Six of the brands in the Top 50, collectively worth US$50 billion, didn’t even
exist 10 years ago, while more than half the brands in the Top 50 were created
after 1990.
Some observations about this year’s ranking reveal the dynamic environment
in which Chinese brands are thriving.
Privately held brands are growing
TheentrepreneurialnatureofChinesebusinessshowsupintherelativegrowth
in value of privately owned brands. These brands make up the majority (two-
thirds) of the Top 50, and they grew 27 percent year-on-year, compared to a
mere 13 percent for state-owned enterprises (SOEs). However, the privately
held brands have a considerable way to go to match the dominance of the
SOEs, which currently account for 70 percent of the value of the Top 50 brands
and occupy eight of the top 10 positions in the ranking. (See Table 1.)
Point of View
40%
35%
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
Jul ‘10 	         oct ‘10            jan ‘11           apr ‘11               jul ‘11	 	
Figure 1: BrandZ™ China Portfolio vs. MSCI China (July 2010 to Sept 2011)
+20%+20%
–6%–6%
Source: Bloomberg: MBOptimor London Analysis
BrandZ™
Market
BrandZ™ Portfolio; Top 50 Chinese Brands
MSCI China index
PekingTan
R&D Director, Greater
China, Millward Brown
PeterWalshe
Global BrandZ Director
Millward Brown
Brand Field Value
(USD Millions)
% Change
from 2010
1 China Mobile Telecom $53,607 -4
2 ICBC Financial $43,910 +15
3 China Construction Bank Financial $21,981 +1
4 Bank of China Financial $18,643 -17
5 Agricultural Bank of
China
Fincancial $17,329 +5
6 Baidu Search Engine $16,256 +67
7 China Life Insurance $15,253 -17
8 Sinopec Oil & Gas $13,791 N/A
9 PetroChina Oli & Gas $13,755 -3
10 Tencent Internet Service Portal $12,624 +3
Table 1: The China Top 50 – First 10 Brands
In contrast to the top 10 brands overall, the Top 10 Risers (the brands with the
biggestincreasesinvalue)—arenearlyallprivate.(SeeTable2.)WebportalSina
heads this list with a dramatic increase of 244 percent over last year. Search
engine Baidu, though it grew by a smaller percentage (67 percent), registered
the biggest increase in actual dollars. It added $6.5 billion to its value—more
than the combined values of the bottom 12 brands in the ranking.
Top risers reflect improved living standards
The fastest-growing brands come from categories that have benefited from
increases in discretionary spending. In addition to the two Internet brands,
the Top 10 Risers include three alcohol brands, two herbal remedy producers,
two food brands, and a manufacturer of air conditioners.
As Chinese brands have continued to steadily increase in value, the proportion
of earnings that are driven by brand and consumer preference has also edged
up. In comparing the Top 50 rankings from 2010 and 2011, we observe that 16
brands improved their brand contribution scores while none declined.
Thebrandcontributionscoredescribestheextenttowhich“brand,”asopposed
to factors like price and location, is responsible for earnings. The increase in
these scores is a reflection of the fact that Chinese consumers are becoming
more informed and discerning about brands. Exposure to multi-national
brands has raised their expectations of quality and value, and Chinese brands
have answered this challenge with some real achievements in brand building:
improvements in innovation, marketing, image building, and the ability to
keep pace with rapidly changing consumer expectations.
Brand Field Value
(USD Millions)
% Increase
from 2010
1 Sina Portals/E-Commerce $1,905 244
2 Fulinmen Cooking Oil $380 138
3 Tong RenTang Pharma $1,026 89
4 ChangYu Alcohol $3,223 77
5 Baldu Portals/E-Commerce $16,256 67
6 Mengniu Food & Dairy $3,446 66
7 Wu LianYe Alcohol $4,037 65
8 Gree Air Conditioning $1,632 58
9 Moutai Alcohol $9,129 58
10 Yunnan Baiyao Pharma $1,897 49
Table 2: The China Top 50 – Top 10 Risers
The recently released ChinaTop 50 ranking once again
confirms the value of a strong brand and highlights the
remarkable growth of China’s economy over the past
decade. But it also provides an opportunity to define some
of the specific challenges currently facing Chinese brands.
China’sTop50:
MuchProgressButMoretoDo
Outside of China: Chinese Brands Lack Roots
Though they have made great strides in China, most Chinese brands are still
relatively unknown outside of China. Across the Top 50, foreign earnings
average less than 5 percent. Millward Brown’s “Going Global” study helps
to put those earnings figures into perspective. The staggering finding from
that project, which investigated knowledge of Chinese brands in several key
markets outside of China (including India, Malaysia, Australia, South Africa,
the UK, and the United States), was that, overall, 83 percent of respondents
could not name a single Chinese brand.
Among the few brands that did have name recognition was PC maker Lenovo,
unusual among Chinese brands in that 50 percent of its sales come from
abroad.Anotherrelativelywell-knownChinesebrandwastheappliancemaker
Haier. Respondents also had some knowledge of Tsingtao beer and Li-Ning,
the sports shoes and apparel brand.
So it seems that the first challenge facing China’s brands as they venture into
global territory is to gain familiarity. However, to compete effectively against
established brands in well-developed markets, they also need to establish a
meaningful point of difference.
How Difference Drives Value Growth
Analysis of the BrandZ database, both in China and elsewhere, confirms that
those brands that offer a meaningful difference are the ones most likely
to achieve profitable growth. Offering an experience that is meaningfully
different can enable a brand to support a price premium or to capture a higher
proportion of sales at a price that is on par with the market.
Figure 2 shows an analysis that relates people’s perceptions of the qualities of
“meaning”and“difference”tobrandcontributionscores.InBrandZ,wemeasure
difference directly, with the attribute “different than others.”We captured the
concept of meaning through a combination of the attributes ”high opinion”
and “appeal.” We took the 1,172 Chinese brands measured by BrandZ from
2008 to 2011, split the brands into three groups (according to tertiles) on both
difference and our composite measure of meaning, and then calculated the
average brand contribution scores for each of the resulting nine groups.
Thethreeredboxesintheupperrightcontaintheindexesforbrandsthat score
high on difference or meaning or both. Note that these numbers are far higher
than those in the other boxes.The brands that are high on both difference and
meaning index at 143; thus they have an average brand contribution score
that is 43 percent higher than average. The brands that are high on meaning
and in the middle group on difference index at 130, while those that are high
on difference but in the middle third on meaning also index much higher than
average at 121.
Conversely, being in the bottom third of brands on either or both dimensions
leads to significantly lower scores on brand contribution. The group that is
low on both has an index of 55. Note that even the brands in the top third on
difference had relatively low brand contribution scores when they scored in
the lowest third on meaning, indexing at 85.
Point of View
85 121 143
73 100 130
55 83 104
High
Medium
Low
Difference
Low Medium High
Meaning
Figure 2: The Impact of“Brand”on Sales
Average Brand contribution Scores (Indexed)
BrandZ™ China 779 brands 2009-2011 (Average = 100)
85 121* 143*
73 100 130*
55 83 104
High
Medium
Low
Difference
Low Medium High
Meaning
Figure 3: Distribution of China Top 50 on Meaning and Difference
Percent of brands in each group
*50% of the Top 50 are strong on one or both elements
China’sTop50:MuchProgressButMoretoDo
When we narrow our focus from all Chinese brands to the China Top 50, we
see another example of Chinese brands moving in the right direction. The
average brand contribution score for the China Top 50 improved from 118 in
2010 to 124 in 2011. This narrows the gap between the China Top 50 and the
Global Top 100, for which the average brand contribution score in 2011 was
129.
Another difference we observe between the China Top 50 and the Global
Top 100 is in the distribution of brands across the nine boxes. Only half the
China Top 50 brands appear in one of the three upper-right-hand (red) boxes,
compared to 70 percent of the Global Top 100 most valuable brands. So even
though Chinese brands have made great gains, they can still improve on
creating differentiation and meaning.
Some Meaningfully Different China Success Stories
A meaningful difference is one that is considered to be important—one that
provides a brand with a meaning that is likely to influence brand choice. As
Nigel Hollis said in his January 2012 POV“Not Just Different but Meaningfully
Different,”brand meaning can originate from many different sources: heritage,
function, style, and price are a few of the possibilities. Therefore, a meaningful
difference might be a tangible product-oriented quality, or it might be an
intangible emotional benefit.Whetheritistangibleorintangible,ameaningful
difference is a difference that is significant and influential.
Some of the brands in the China Top 50, most notably those among the Top
10 Risers, have done a great job of establishing a meaningful difference and
should provide inspiration to other developing Chinese brands. Sina (No.
25 overall, No. 1 among the Top 10 Risers) has distinguished itself through
innovation by creating a micro-blogging site, Sina Weibo. With 227 million
users posting 86 million messages each day, Sina Weibo offers something
unique and valuable to consumers and has helped rejuvenate the Sina brand.
Heritage can be another key differentiator, and Chinese brands have a rich and
unique tradition on which to draw. Tong Ren Tang (No. 36 overall, No.3 among
top risers) is a traditional Chinese medicine manufacturer that was established
over 340 years ago. Herbal remedy producer Yunnan Baiyao (26/10) leverages
Chinese medicine by incorporating the ancient baiyao powder, which stops
bleeding, into modern products such as toothpaste, bandages, and skin-care
creams.
Trust is a critical issue, particularly for food brands, because of a number of
qualityissuesandscandalsinrecentdecades.BothFulinmen(47/2),theleading
cooking oil and rice producer, and Mengniu (18/6), a maker of dairy products,
have benefitted from clear communication of their healthy provenance.
Fulinmen has projected the caring and protective image of a wise mother,
while Mengniu has connected the consumption of dairy products with the
strength of the Chinese people.
Outlook for the Future
The BrandZTM China Top 50 brands 2011, collectively worth US$325 billion at
the time of the study, testified to the fact that strong branding is the result of
providing a great product experience and developing a trusted relationship
with customers. But even though Chinese brands have made remarkable
progressoverthepast10years,theyhavemoreworktodoiftheyaretocompete
effectively in global markets. They must increase their strength in their home
market by continuing to build perceptions of meaningful difference in the
face of increased competition from multinational brands. Outside of China,
they need to raise awareness and communicate their meaningful difference
at the same time, and in so doing they must take into account the varying
mindsets and attitudes toward brands that exist in other countries. A one-
size-fits-all marketing plan will not be effective. However, the China Top 50
ranking showcases a number of Chinese brands that are acquiring and honing
the skills that will make them successful overseas.
Point of View
China’sTop50:MuchProgressButMoretoDo
Point of View
You may have some trinket or memento on
your desk as well—something that doesn’t have
any practical purpose and appears insignificant
to others, but is meaningful to you. Your unique
history with the object makes it special.
I think the fact that we can form such attachments
with relatively inconsequential objects illustrates
a too-often-overlooked concept that is important
for brands and brand marketing: the concept
of meaningful difference. A presentation I saw
recently, created by the agency BBH, also focuses on the concept of difference.
Thepresentationproclaimedthatthe“classic”communicationsmodel,inwhich
communication that is relevant, different, and motivating leads to behavioral
change, has given way to the “insight” model, in which changes in behavior
are effected by communication that is simply relevant and motivating.
“We have forgotten the power of difference,” BBH asserted. I am afraid that
they are right—and that this amnesia applies to both communication and
branding. Many marketers today value
relevance to the exclusion of difference—
and to the detriment of their brands.
Yet those who first demoted “difference”
from its place of honor in communications
may have done so for the right reasons.
Theymayhaverealizedthatbeingdifferent
for the sake of being different was of little
value. But the mistake they made was
to throw out difference altogether and switch their emphasis to relevance.
Successful brands are both relevant and different—but they are also more
than that. Successful brands are meaningfully different.
So what’s a meaningful difference? I think of it this way. We humans find it
impossible to judge anything in isolation. We tend to compare things to very
close alternatives.
So a difference, a factor that distinguishes one item from another, gets our
attention. And while a difference may be apparent to most people, it won’t
seem important to everyone. A meaningful difference is one that is considered
to be important—one that provides a brand with a meaning that is likely to
have an influence on a person’s brand choice.
Brand meaning can originate from a multitude of sources. It could come from
your personal history with a brand; for example, you might use the same
brand of detergent that your mother used. Or it could come from functional
characteristics; you might really like the intuitive interface of that tablet
computer. You might be attached to your car because you think it looks hot
or because it is economical and saves you money. Or a brand’s meaning for
you might simply be that it is familiar when others are not. Meaning can
be functional and tangible or emotional and intangible or all of the above.
Meaning is in the eye of the beholder.
Nigel Hollis
SVP and Chief Global Analyst,
Millward Brown
Point of View
Many marketers today
value relevance to the
exclusion of difference -
and to the detriment of
their brands
For many years, a smooth green stone has sat on my desk. It’s
a piece of serpentine that I was given when, as a small child, I
visited an artist’s workshop in Scotland.Truthfully, it’s a pretty
unremarkable rock, and I doubt that anyone else would find it
interesting, but it means something to me.
NotJustDifferentbut
MeaningfullyDifferent
The Value of Meaningful Difference
Relevance is important. Millward Brown’s BrandDynamics™ equity model
shows that those who find a brand relevant—that is, who admit that the brand
offers something they want or need at an acceptable price—are four times
more likely to purchase it than those who don’t. But because, on average,
across a range of categories, people find as many as six brands to be relevant,
they still need additional reasons to choose among them.
When people go beyond relevance to “bond” with a brand (“bonding” is
the strongest degree of consumer affinity defined by BrandDynamics), they
believe that the brand satisfies their needs better than others in the category.
People who bond with a brand are over five times as likely to buy the brand as
those who simply consider it relevant.
What drives people to bonding? Recent analysis suggests that “meaningful
difference” is a critical factor. People who cite three key advantages of a
brand—that it is different, that it is more appealing than others, and that they
have a higher opinion of it—tend to have the highest predicted probability of
purchase. In other words, they consider the brand to be different in a“good”or
“meaningful”way.The same three attributes are an integral part ofVoltage 2.0,
a metric that has been proven to relate to both a brand’s ability to command a
price premium and the likelihood of future growth in market share.
How Can Something So Small Be So Important?
Inmyrecentpointofview“ItIsNotaChoice:BrandsShouldSeekDifferentiation
and Distinctiveness,” I cited a statistic from our BrandZ database about
“difference.”I said,“Among those that consider a brand acceptable, an average
of 18 percent agreed that it was different from others … (Note: At this level,
‘different from others’ is one of the most discriminating attributes within our
data set.)”
Several people have commented that an average of 18 percent does not seem
very high. And it’s unfortunately true that one of the heuristics by which we
operate as humans is that big numbers seem more important than small
ones. But actually, the fact that the majority of brands are not considered
to be very different from each other makes “different” a very discriminating
element. “Different” is not a generic, applies-to-every-brand-in-the-category
attribute. It is not an insipid, I-want-everyone-to-buy-me attribute. Instead, it
is a characteristic that sets the brand apart and gives it the ability to attract
new buyers while commanding a price premium.
What Is a Meaningful Difference?
What really constitutes a meaningful difference, especially in developed
markets where most brands are functionally equivalent? As I said earlier, a
meaningful difference is one that is significant and influential. It might be
a tangible product-oriented difference, or it might be an emotional and
intangible difference. A difference that may seem trivial to some people may,
for others, add that extra something that makes them choose that brand over
others. A brand like Coca-Cola is unlikely to change its formulation, particularly
after the debacle of New Coke. Instead, Coke works single-mindedly to create
intangible differentiation through creative campaigns that focus people’s
attention on the brand’s reason for being. The “Open Happiness” advertising,
“My Coke”Rewards, and the brand’s engagement with social media all remind
people of what Coke stands for. They layer new and renewed meaning onto
a long-established and dominant brand. As a result of this communication,
ardent fans continue to believe that there is simply no substitute for their
favorite soft drink.
This points up the roles that “difference” and “relevance” play in determining
people’s conscious responses to advertising. Perceived relevance is a
fundamentalfactorindeterminingwhetherornotpeoplefindanadpersuasive,
but it is not the only one. When people say that an ad has made them more
likely to buy a brand, they are also likely to say that the message was relevant,
new, credible, and different. Newness—that is, new news—is important in
changing people’s minds about a brand, while credibility and difference boost
an ad’s motivational potential.
Point of View
Coca-colaworkssingle-mindedlytocreate
differentiationthroughcreativecampaigns
NotJustDifferentbutMeaningfullyDifferent
This said, it is critical to note that persuasion is just one route to sales success,
and it tends to be a one-off event. Recent analysis conducted by my colleagues
DominicTwose and PollyWyn Jones suggests that highly creative ads can have
a more enduring effect than ads that are more persuasive but less engaging.
Building on previous analysis that demonstrated the connection between
sales effectiveness (both long- and short-term) and an ad’s ability to generate
brand-linked memorability (which we measure using the Awareness Index),
Polly and Dominic studied ads that were recognized with IPA Awards for
being highly creative. They observed that these highly creative ads, whether
they were especially persuasive or not, scored high on the Awareness Index,
and thus were likely to generate sales. So perhaps what is most important for
long-term success is ensuring that a brand remains salient through creative
and engaging advertising that reminds people what the brand stands for.
Small differences, even intangible ones, can have big effects in relatively
undifferentiated categories. The Old Spice campaign, “The Man Your Man
Could Smell Like,” was different not only from previous Old Spice campaigns,
but also from any other campaigns for male grooming products. In pushing
the brand into new territory, the campaign risked being seen as inappropriate
to the brand and category, but instead its tongue-in-cheek humor managed
to engage a new young audience, thus reframing the brand and boosting its
growth. But the Old Spice campaign didn’t work by making people note the
brand’s “relevance” and immediately add the product to their shopping lists.
Rather, it gave them a moment of amusement, which they probably forgot
about almost immediately. But later, when they noticed the brand on the
shelf, that amusement, whether consciously remembered of not, made the
brand different—and for some people, that difference was enough to make
them choose it. 
Meaningful Difference Is Ongoing, Not One-off
An intangible difference rooted in advertising memories can be enough to
get someone to try a brand. But to finish the job of winning over a new user,
a brand has to deliver a rewarding experience. A positive experience will
confirm the user’s belief in the brand’s unique value, perhaps to the extent of
supporting a higher-than-average price.
In this way, I believe that brands are like my lump of serpentine. They start
out with a meaning that is fresh, new, and specific, based on when and how
we first encounter them. Then, over time, familiarity and experience layer
additional significance onto them. Some of that added significance may be
quite tangential to what originally motivated our interest in the brand, but it’s
likely to be important to us nevertheless, just as the meaning that has accrued
to my lump of serpentine over the years is important to me. So one of the most
critical things a marketer can do is to continue to add meaning to a brand
over time through events, sponsorships, and compelling communication.
It is when a meaningful difference is conveyed and delivered in a way that
resonates with consumers that attitudes and behaviors can be affected.
Meaning, Not Relevance, Is the
Difference Maker
When we study today’s most profitable
and successful brands, the importance of
meaningful difference becomes obvious.
The world’s strongest brands are not
the ones that are most relevant. On the
contrary, the most successful brands don’t
try to be all things to all people. Apple’s
shares of the computer and mobile phone
markets are still relatively small, held in check by the price premium Apple
commands. But Apple sits near the top of the BrandZ Top 100 Most Valuable
Brands ranking. Burberry and Tiffany have both delisted cheaper items that
were attracting the “wrong” type of customer. And sometimes customers
make their own choices. Not everyone wants to shop at Wal-Mart.
Relevance, on its own, is not a difference maker. It’s necessary but not sufficient
for brand success. Relevance alone won’t motivate purchase, especially when
brand switching is involved. Even when acting on impulse, people need to
find something different and appealing in the brands they choose.
Insomecategories,likesaltysnacks,carbonatedsoftdrinks,andconfectionary,
it may be enough for a brand to have a bank of positive advertising memories
in people’s minds. A pleasant and amusing association may be enough to
prompt someone to say,“I like that one more than others.”In other categories,
like computers, insurance, and airlines, marketing communication will need
to provide a more coherent story of why a brand is different and better, if only
to reassure people that they are making a good choice.
Intheabsenceofameaningfuldifference,thecheapestbrandmayberegarded
as the best choice. Lack of differentiation turns brands into commodities and
marketing messages into white noise. But a meaningful difference can spark
consumer interest and fuel demand for a brand, even when that brand carries
a significant price premium. In today’s complex, confusing, and increasingly
impersonal world, people cherish meaning wherever they find it, whether it’s
in a brand, a memory, or a lump of rock. So to build value, give people a reason
to cherish your brand.
It is when a meaningful
difference is conveyed
and delivered in a way
that resonates with
consumersthatattitudes
and behaviors can be
affected
Point of View
NotJustDifferentbutMeaningfullyDifferent
Point of View
While the variety of ideas that marketing might
communicate is endless, the general characteristics
of things that people readily remember can be
expressed in a short list. People remember things
that are:
•	 Relevant
•	 Different
•	 Emotionally impactful
•	 Recently encountered
•	 Frequently encountered
Many people assume that the first three qualities - relevance, difference, and
emotional impact - evolve out of the creative content, while the last two
attributes are functions of media delivery. But it is not really so simple.
The characteristics of the media vehicle used to deliver a message can shape
the way people respond to the message itself. A medium can do more than just
delivercommunicationsthatarerelevant,different,andemotionallyimpactful;
a medium can actually play a significant part in making communications
relevant, different, and emotionally impactful. And therefore, media play an
important role in making communications memorable.
Delivering relevance through media
First and foremost, the relevance of a brand’s message derives from the nature
of the brand and category being advertised. So, for example, no matter how
cool your creative is, ads that pitch women’s fashion and beauty products to
men are not likely to accomplish much.
So much is obvious. But assuming that a brand has an appropriate target
audience in mind, both the creative expression and the nature of the hosting
medium will factor into the relevance of a piece of communication.
Reaching the right people at the right time
Most media plans are explicitly designed to deliver brand communications
to consumers who will find them relevant. Audience measurement research
and studies like TGI are used to identify media vehicles that will be good at
reachingtheappropriatetargetaudience.Mediaagenciesalsoputmucheffort
into identifying the situations, dayparts, or days of the week that present the
best opportunities for brands. For example, out-of-home (OOH) advertising
may be used to attract people’s attention before they shop; we know that this
approach can be effective because our research often shows that OOH has a
strong influence on purchase consideration.
Advertisingaroundrelevantcontentisalsoatried-and-testedroutetoreaching
people when they are most likely to be open to a brand message. Someone
who is reading a fashion magazine is more likely to be engaged with women’s
fashion and beauty products than someone watching a prime-time TV show,
even if they are both members of the brand’s target audience.
Media effects vary across groups
Our CrossMedia research has confirmed the value of understanding in detail
how different media perform with different groups. Among groups of people
who are more or less predisposed to a brand or category, we usually observe
different patterns of channel performance. In a recent study, online video
had the greatest impact on one group, while cinema had more effect on
another group. And both media outperformed TV overall. Because the same
creative execution was used in all instances, we know that the difference in
performance reflects differences in the relevance of each medium—and the
message in that medium.
The case for non-TV options
On awareness and presence metrics, TV regularly outperforms other media
per dollar spent. But on more fundamental measures of brand engagement
and brand imagery, TV can be less cost-efficient than more targeted media
like cinema, magazines, and online.
This is a revelation to most people. Yes, TV is often important in creating initial
campaign awareness, which can subsequently be reinforced and extended
through communications in “secondary” media. But this is not the only
effective approach, and it is not necessarily
best practice. In fact, sometimes it is a misuse
of non-TV channels - a result of sheer laziness
on the part of advertisers.
A TV ad can be a powerful communications
device.Butsocanafull-pageadinamagazine,
or a provocative or eye-catching poster. We
have seen great brand impact from non-TV
campaigns over the years, even before the
digital explosion. The famous “White out of
Red”poster campaign for The Economist (which featured text such as “‘I never
read The Economist’ – Management Trainee, age 42”) contributed to building
thestatusoftheBritishnewsweekly.Morerecently,theout-of-homecampaign
that featured a Mini driving up a wall helped launch the “Mini Adventure”
campaign. And in the digital arena, Dove’s viral video “Evolution,” didn’t need
TV to succeed.
Point of View
James Galpin
Director, Global Media
Practice AMAP
ATV ad can
be a powerful
communicationsdevice.
But so can a full-page
ad in a magazine, or
a provocative or eye-
catching poster
Advertisingaroundrelevantcontentisalsoatried-andtestedrouteto
reachingpeoplewhentheyaremostlikelytobeopentoabrandmessage
Afashionmagazinereaderismorelikelytobeengagedwithwomen’s
fashion&beautyproductsthansomeonewatchingaprime-timeTVshow
The success of marketing communication
is judged on a variety of factors, and one
of the fundamental criteria is that people
remember the ideas conveyed.
TheOverlookedPowerofMedia:
EnhancingtheMemorability ofCommunications
How Channel Strategies Help Build Difference
Brands often set out to use media“differently”from their peers in a deliberate
attempt to stand out from the crowd. They may do this by using a media
channel that their category does not normally exploit, or they may target
advertising or sponsorship around specific and distinctive vehicles within a
channel. This phenomenon is behind much of the migration of brands into
new media spaces, be they digital, experiential, or whatever. However, the
most beneficial strategy is one that not only distinguishes a brand from others
but highlights what is truly special about a brand.
A strong brand sets itself apart by offering a brand experience that is
meaningfully different, so media choices that amplify that difference will be
most effective. For example, online shoe merchant Zappos was one of the first
brands to advertise in the bins used for screening carry-on luggage in airports.
They scored obvious relevance points by engaging people at a moment when
they were unavoidably aware of their shoes, but they also subtly reinforced
Zappos’ meaningful difference. The travelers who were already aware of
Zappos’ unparalleled personal service were reminded of it as they endured a
process not known for being warm, friendly, or personal. The contrast made
what Zappos offered look better than ever.
Advertising in atypical dayparts or program genres on TV can also set a brand
apart. For example, a few years back, Kellogg’s started to advertise Corn Flakes
on late-night TV in the UK. Consumer research had uncovered the fact that
many adults consume this traditional breakfast food as a late snack or supper.
The ads airing late in the evening stood out and made the brand seem in tune
with its customers.
Sponsorship is commonly used to build difference, as brands adopt some
properties to try to differentiate themselves by association with special events
or programming. It is remarkable the range of brands you will come across at
various summer music festivals around the world. Mobile firms and big banks
seem especially eager to get down and funky with youth, in an attempt to
stand out from their staid, more businesslike brethren.
How Media Can Help DELIVER EMOTION
The role of media in delivering relevance and difference is fairly easy to
demonstrate. It is harder to pinpoint media’s role in conveying emotion, either
indirectly by enhancing a brand’s messages, or directly by evoking feelings in
relationtothebranditself.Butwebelievethatthemediaenvironmentprovides
an emotional context that can transfer to the brand and its communications.
Leveraging Consumers’ Media Emotions
Consumers feel strongly about the media they use; as a consequence, we know
that they have a sense of some media being appropriate or inappropriate for
some brands and categories. In both qualitative and quantitative research
settings, consumers accept or reject various media options for particular
brands on what seem to be largely emotional grounds. They may see a vehicle
as being too youthful, too light-hearted, or too serious for a brand.
Clearly, consumers see that the medium has a role in saying something about
the brand—and this information may be very useful to a brand that needs
repositioning. A brand that is struggling with perceptions of being old-
fashioned and out-of-date may choose to go all out in new media to signal a
more contemporary or youthful face to consumers. In a recent study in China,
wesawthatonlineadvertisingwaskeytobuilding“modernandcontemporary”
perceptions for a global drinks brand.
EventhesimpleideaofbeingonTVmaysignalsomethingimportant.InChina’s
developing consumer market, people have more faith in“big”brands because
they seem more trustworthy and reliable. A brand that advertises on TV, and
on CCTV in particular, is assumed to be big and trustworthy, especially by the
less sophisticated consumers of inland China. This principle motivates many
brands in many countries to invest in TV advertising, but it is most relevant for
new challenger brands that are seeking to establish their credibility.
Emotional Transference from Associated Content
The other factor that can deliver emotional meaning to communication is
the content in which it occurs. Highly engaging content is believed to lead
to heightened attention during commercial breaks. So if advertising around
engaging content leads to increased attention to ads, we think it reasonable
to assume that advertising around specific types of content may transfer the
emotional associations of that content to a brand. For example, advertising
during seriousTV dramas or news programs could lend gravitas and credibility
to an insurance company or a financial service provider. Comedy might be a
better venue for candy, snacks, or fun vacation destinations.
Asmostcampaignsrunacrossamultitudeofcontenttypes,ithasbeendifficult
up until now to determine the influence of program content. However, we can
see evidence more easily with sponsorships. Consider the success enjoyed
by Baileys when it sponsored “Sex and the City” over an extended period.
The association lent a sense of glamour and sophistication to Baileys and,
perhaps most importantly, linked the brand to the sense of female bonding
and togetherness that the show created among fans.
Point of View
Coca-ColawrapsitselfaroundtheOlympicsbecausetheseevents
areexceptionalfortheirabilitytocreateasenseofcommunity
Moving beyondTV, Red Bull is not seen all over dangerous and extreme sports
events and media content just because it is targeting fans of these activities.
Rather, by associating with activities that engender intense interest and
excitement, the brand is trying to capture some of that emotional power for
itself. By the same token, Coca-Cola wraps itself around the Olympics and the
World Cup because these events are exceptional for their ability to create a
sense of community. Across the world, these events bring people together
through shared experiences, hopes, and dreams, and so they provide a fitting
platform for a brand that 40 years ago aspired “to teach the world to sing in
perfect harmony.”
Delivering Not Only Messages, but Memorability
Media can play a far wider role than the simple delivery of brand
communications. Through their ability to carry messages to the right people
at the right time, media vehicles can
make or break the relevance of a brand’s
communications. They can help a brand sit
apart from the crowd and differentiate its
message.Their emotional tonality provides
a context that can help a brand get through
to its audience and enhance the emotions
that their message evokes. In some cases
the vehicle may even directly influence the
emotional associations of a brand.
In fact, a great media choice may do all of these at once, reaching relevant
peopleinadistinctiveandemotionallyengagingcontextandthussubstantially
enhancing the memorability of brand communications. Of course, if smart
media selection can do all this good, we also have to recognize that ill-
considered placements may do considerable harm. This just makes getting it
right all the more important.
The quality of the creative is of course a critical element in the success of brand
communications. But Marshall McLuhan was also on the right track when he
famously stated,“The medium is the message.”For brand communications, the
medium is a very significant part of the message. Therefore, advertisers need
to go beyond the question of just how much to spend. All GRPs are not created
equal; smart media decisions can significantly enhance memorability and
enable marketers to get the most out of their communications investments.
Through their ability to
carry messages to the
right people at the right
time, media vehicles
can make or break the
relevance of a brand’s
communications.
TheOverlookedPowerofMedia: Enhancing
theMemorabilityofCommunications
‘A brand that advertises
onTV in China, and on
CCTV in particular, is
assumed to be big and
trustworthy’
Point of View
The evidence is in Jim Stengel’s new book, Grow:
How Ideals Power Growth and Profit at the World’s
Greatest Companies. With the help of Millward
Brown Optimor, Jim identified the 50 brands that
ranked highest on both consumer bonding and
value creation over the past decade.1 As we worked
with Jim to understand what made these brands
so successful and fueled their growth, we observed
that the best businesses are ideals-driven.
What Is a Brand Ideal?
A brand ideal is a higher purpose of a brand or
organization, which goes beyond the product
or service they sell. Jim explains it this way: “The
ideal is the brand’s inspirational reason for being.
It explains why the brand exists and the impact it
seeks to make in the world. A brand ideal actively
aims to improve the quality of people’s lives. It
creates a meaningful goal for the brand—a goal
that aligns employees and the organization to
better serve customers.”
The brands in the Stengel 50, though they come from both public and private
companies in B2B and B2C businesses, and include established as well as
younger, smaller, fast-growing companies, all have a clear sense of purpose.
Zappos is in the business of delivering happiness. Pampers does not just sell
diapers; it cares for the happy, healthy development of babies around the
world. IBM’s purpose is to make a smarter planet. Google exists to organize
and give access to the information of the world, and Discovery Channel’s ideal
is to satisfy curiosity.
A Brand Ideal Is Not …
A brand ideal is not a mission statement. Mission statements tend to be
narrow, business-oriented statements such as “Be the leader in customer
satisfaction” or “Be the most innovative company.” Mission statements tend
to be self-serving and therefore limiting.
Ideals, being outward focused, extend
beyond the company’s financial interests.
Red Bull’s ideal is to uplift mind and body;
it exists to energize the world.“To be the #1
energy drink” is probably a mission for the
company, yet it is seen as an outcome, not
its raison d’être.
Nor should an ideal be confused with
corporate social responsibility (CSR) or
cause marketing. The ideal is a core principle inherent in a brand, something
that emerges from a company’s DNA. Though such a high-minded concept
may seem impractical or lofty, we also have proof that ideals-driven businesses
deliver higher performance. We have consumer research data as well as
financial data that verifies the power of ideals. Research recently conducted
by Millward Brown found that, when asked to name brands that were based
on ideals, people mentioned the brands in the Stengel 50 more than other
brands.
We also have proof that ideals-driven businesses deliver higher performance.
As shown in the chart below, Stengel’s top 50 brands outperformed the market
over the past 10 years. An investment in the Stengel 50 would have been 400
percent more profitable than an investment in the S&P 500.
How Brand Ideals Light the Way
When a brand ideal is at the heart of a business, it serves as a light from within
that guides every decision of the leaders and employees in every department,
from HR to finance to marketing to product development. Ideals, we found,
help shape a business and organization in three distinctive ways. First, ideals
lead to the creation of more meaningful products, services, and customer
experiences. Second, ideals align the organization and its culture behind a
common purpose. And finally, ideals lead companies to rethink the way they
engage and communicate with consumers; ideals move them beyond selling
and telling consumers what to do to inviting them into dialogue.
Point of View
Benoit Garbe
Vice President, Millward
Brown Optimor
Jim Stengel
Global Marketing Officer
Procter & Gamble (2001-2008)
Author: Grow:HowIdeals
PowerGrowthandProfitatthe
World’sGreatestCompanies
The ideal is the brand’s
inspirational reason for
being. It explains why
the brand exists and the
impact it seeks to make
in the world
400%
0%
STENGEL TOP 50 S&P 500
The Stengel 50 Outperform the Market
“Doing well by doing good”— is that really attainable?We have always
thought so, but now we have proof.The most successful brands and
businesses in the world are built around something other than just
making profit.They are built around ideals.”
Ideals:TheNewEngine
ofBusinessGrowth
Ideals inspire outstanding brand experiences
The sense of meaning that comes from delivering on an ideal inspires a
high level of dedication to producing the best possible brand experience
for customers. Product performance,
innovation, packaging, design—all of
these elements are inspired, developed,
and refined in the light of the ideal.
Method, the household cleaning
company, was built on the ideal of
inspiring a home revolution to create
happy, healthy homes. Every aspect of
each product is inspired by the ideal:
the non-toxicity, the natural scents, the
beautiful ”cosmetic-like” packaging.
Apple offers the best experience through beauty and simplicity. Chipotle
Mexican Grill, another one of our top 50, fulfills its ideal of bringing integrity
and taste back to food by inviting patrons to create their own custom dishes
using fresh, natural, and locally sourced ingredients.
Ideals align organizations
The best companies align their organizations and culture behind their ideals.
By being purposeful (beyond making money and growing market share),
they provide a higher meaning to all employees. The ideal provides clarity
and intentionality. More importantly, these companies develop systems and
processes to stay true to their ideals. For example, Red Bull has set unique
hiring guidelines. They don’t put a priority on hiring people with beverage
industry backgrounds; instead they focus on athletes, DJs, and former Red
Bull student ambassadors—people who believe in and live the ideal. Even the
workplace is designed to be true to the ideal. For example, Red Bull’s London
headquarters has skateboard ramps and slides from floor to floor!
Zappos has set up processes that allow employees to be true to the ideal of
deliveringhappiness.Employeesdonothavequotasortimegoalsforcustomer
calls. Nor do they adhere to scripts. They are empowered to help customers
in need, whatever it takes. There are stories of employees sending flowers to
customers in distress and helping customers order pizza in the middle of the
night. And for Zappos, delivering happiness has delivered sales. The company
exceeded the $1 billion mark this year and has the highest loyalty rate of all
online retailers.
Ideals redefine consumer engagement
Finally, a brand ideal changes the basic rules of communication by inspiring
companies to engage with consumers in a more meaningful way. Rather than
telling consumers what to think or do, they take the lead in inviting consumers
to co-create with them. For example, IBM invites consumers, thought leaders,
and employees to rethink how we can make the planet smarter, whether
that’s by fighting crime, addressing traffic congestion, or using energy more
efficiently. Rather than simply communicating the benefits of their diapers,
Pampers has partnered with UNICEF in providing vaccines to eradicate
maternal and newborn tetanus, and created online and offline forums where
moms can gather to discuss and learn about the health and development of
their babies.
Ideals Can Also Light the Way Back
Companies and brands can go off course, whether or not they are guided by
ideals. However, a brand ideal can help a company find its way back. The rise,
fall, and recent turnaround of Starbucks provides a good example. Starbucks
was built on an ideal—to create human connections. From a few stores in
Seattle, the chain grew into being the cornerstone of every neighborhood
in America and around the world. However, this focus on growth became a
distraction that got Starbucks into trouble—until it returned to its beliefs,
values, and ideal.
After years of rapid growth and expansion, in 2007 the chain found itself
overexpanded and confused about its purpose. Was Starbucks meant to
promote human connection or simply to be ubiquitous on every street corner?
Was Starbucks meant to promote human connection or simply to maximize
profits through speedy and efficient service?
A succession of incremental decisions made over the years had led Starbucks
away from its fundamental values. Drive-through windows didn’t foster face-
to-face interactions.
An emphasis on speed and efficiency interfered with employees’ ability to
create a sense of community. Automatic espresso machines reduced the need
for the care and craftsmanship of a Starbucks barista. The magic and romance
had been lost; Starbucks was no longer celebrating coffee.
When Howard Schultz returned as CEO in January 2008, he refocused the
organization on the brand ideal, thereby impacting the product and customer
experience, the company culture, and
its consumer engagement. First, Schultz
restored coffee to its original place as the
brand centerpiece. “Starbucks is more
than coffee,” said Schultz, “but without
coffee, we have no reason to exist.”
On February 26, 2008, 7,000 U.S. stores
were closed for the retraining of 135,000
baristas. This bold action was just the first
of many initiatives, including the return
to on-location grinding, the launch of the Pike Place Roast, and the redesign
of the look and feel of the stores.
Second, once he was back at the helm, Schultz reminded the organization
and all of its partners why the company existed. Many companies fail, he said,
”not because of challenges in the marketplace, but because of challenges on
the inside.” Schultz worked to remove operational and structural barriers to
realizing the ideal and to reinforce the“big why”of Starbucks—to inspire and
nurture the human spirit, one person, one cup, and one neighborhood at a
time.
Finally, Starbucks set about reengaging with consumers in a more meaningful
way than before. Schultz entered the company into a highly visible and
publicized partnership with Conservation International and committed its
coffee to being“Responsibly Grown, Ethically Grown, and Proudly Served.”One
ofthefirstbrandstoenterintodialoguewithconsumerswhenitexperimented
with MyStarbucksIdea.com in 2008, Starbucks continues to co-create with
consumers and is now one of the most active brands in social media.
Going back to living its ideal helped turn Starbucks around. Its stock price,
which bottomed out at $8.43 in 2008, ranged between $46 and $48 during
January 2012.
Starbucks turned itself
around by going back
to living its ideal – to
inspire and nurture
the human spirit, one
person, one cup, and one
neighborhood at a time
Point of View
Ideals:TheNewEngineofBusinessGrowth
A brand ideal serves as
a light from within that
guides every decision
in every department,
from HR to finance to
marketing to product
development
What Lights Up Your Brand?
The best brands have navigated by the light of their ideals for decades. Some
brands were organized around an ideal from their inception, while others
chose to consciously and deliberately reorient their businesses around a
higher purpose. So we believe that all brands and businesses, whether they
are presently driven by the loftiest ideals or the most mundane purposes, can
learn from studying brands like those in the Stengel 50. Consider the following
questions.
Why are you in business?
Does your company operate around a brand ideal? If not, did it ever? Don’t try
to“invent”an ideal—a true brand ideal can’t be developed by a task force. But
your company may have been founded on an ideal that will still be relevant
onceit’sunearthed.Consideryourcompany’sheritage.Whatdidyourfounders
believe in? Why did they get into business? What need did they set out to
address? Why do employees believe in what they do?
Is your ideal clear, and are you acting on it?
Whether or not your company offers a higher-order benefit to the world,
everyone in your organization should have a clear understanding of your
brand’s purpose and be empowered to act on it. Does your ideal guide decision
making? Does it inspire innovation? How does the ideal impact your products
and services?
Is your organization aligned around your ideal?
Take a look at your organization’s structure. Does it facilitate the expression
of your ideal? Are employees in all functions able to keep it in view? Is the
achievement of short-term goals balanced against the long-term fulfillment
of the ideal? In light of your ideal, how do you hire and promote?
How often do you revisit your ideal?
Abrandidealthatiskeptunderglasswillnotserveyourorganization. Scrutinize
every action, decision, and significant change in light of your ideal. Only by
constantly referring back to your company’s reason for being can you avoid
the creeping incrementalism that undermined Starbucks.
Brand Ideals: The New Path for Growth
The brands that will survive and thrive in the decades to come will be
those that are based on ideals, because in changing times and challenging
circumstances, a brand ideal serves as a beacon. It guides the brand along a
path of growth and change, helps to identify
opportunities for challenging the status quo,
and sheds light on new and different ways to
deliver higher-order benefits in the future.
It‘s time to reset the course of marketing.
Brand ideals represent a new path for growth.
Leaders who build their companies around
ideals will have a meaningful impact—on consumers, their employees, their
businesses, and ultimately the world.
The brands that will
survive and thrive in
the decades to come
will be those that are
based on ideals
Point of View
Ideals:TheNewEngineofBusinessGrowth
PUBLISHED
ARTIcLES
he promise of mobile marketing is staggering. And
for good reason: Despite an overwhelming lack of
enthusiasm for it, audiences respond to it. According
to the latest AdReaction report out today from
Millward Brown and its Dynamic Logic and Firefly
Millward Brown units, one-third of mobile users
report taking action in response to mobile advertising. Almost half
report interacting with a brand on their mobile device following
recommendations from friends or family members. And one-third
of users say that receiving deals or promotions via mobile improves
their opinion of the brand.
While these engagement figures are undoubtedly promising, the fact
that only 11 percent of smartphone users and 16 percent of tablet
users indicate they are favorable toward mobile advertising signifies
a fairly deep chasm between effectiveness and love. Why is that?
Here is what we heard:
By Joline McGoldrick,
Research Director at Dynamic Logic, Millward Brown’s Digital Practice
Mobile:AnEffective
-YetUnloved-
MarketingMedium
T
A mobile device is also a tool, and the mobile web a
personal space. Users are goal-directed. Non-user-initiated
contact temporarily derails them from their goal, and they
want tangible value in exchange.
Response to various ad formats varies significantly by
demographic and psychographic variables. Understanding
where flexibility or openness exists is essential.
Users expect mobile marketers to know who they are and
to target them accordingly. Close to 40 percent are willing
to share their location and interests in exchange for the
right content and promotions. To the chagrin of mobile
users, many marketers still don’t target effectively or
appropriately.
Many mobile sites or apps simply don’t work. Users who take
action on an offer or recommendation are often sent to a
site or app that, at best, doesn’t meet their mobile needs or,
at worst, doesn’t work correctly. Users have extremely high
expectations of mobile’s technical competence.
No one likes“rude intrusion.”Marketers often overreach
by asking for too much personal information, delivering
irrelevant ads or brand posts, or not offering consumers
a simple way to opt-out. Not surprisingly, this behavior is
then imputed onto the brand itself.
Correcting these drivers of mobile dissatisfaction sounds simple,
but many mobile marketers have yet to improve their tactics, despite
an audience so open to being wooed. The solution? Commitment to
10 principles that are key to winning over audiences and building
lasting value for brands.
Mobile Display
1.	Offer a clear call-to-action. No medium is more primed to engage a
consumer on the spot. Make sure your mobile ad does everything possible
to prompt a response.
2.	Target the person, the moment, the location. Users have an expectation of
mobile’s built-in intelligence, and poor targeting suggests that brands are
too lazy to send“the right ads.”
3.	Develop integrated mobile campaigns. Mobile ad units are a layer of the
mobile continuum – not a strategy. Use display ads to drive traffic to an
optimized website or app for continued engagement.
Mobile Websites
4.	Be fast. Be clean. Be functional. Don’t feel compelled to outdo your online
website, but optimize it for the mobile platform and across devices. Embrace
the goal-directedness of the mobile user and minimize taps. Subaru’s
mobile site is a great example —two taps delivers location-based deals.
5.	Don’t value entertainment over competence. Deliver functionality first and
reward later.
6.	Keep the latest news on top and tailor to the location.
Mobile Apps
7.	Make apps easy to acquire, user-friendly, crash-proof and free.
8.	Be relevant. Design with the core target, primary use and operating system
in mind.  Answer the when, where and why about your app. A great example
is Home Depot’s app that allows users to scan QR or UPC codes in the store,
read product info or reviews, and share or add to a shopping list.
9.	Be mindful of using audience resources. One-third of users say apps drain
their battery while one-in-five feel that apps want too much info.
10.	 Once you’ve done the above, aim to surprise and delight. Users report
only using half their apps regularly. Provide a reason for them to come back.
One respondent in the study said,“The Sam’s Club app was like eye candy.
I would seriously consider getting a membership based on how cool their
app was. It made it so easy to shop.”
Mobile marketing, when done right, can measurably improve
consumers’ opinion of a brand. Normative data from Dynamic Logic
indicates that mobile ads can typically increase brand awareness,
message association and purchase intent four times that of online
ads.
The appetite for effective mobile marketing is here today– in a very
big way. Respecting the wants and needs of consumers and the
distinctiveness of the platform is essential and can be the difference
between damaging your brand and inspiring immediate action – and
maybe even a little love.
First published in the November, 27 2012
edition of Forbes, www.forbes.com
Mobile: An Effective - Yet Unloved - Marketing Medium
hile everyone was getting excited about the
potential of the BRIC nations, Africa quietly
emerged as the real growth story, and with
apologies to Star Trek, Africa may just be
“the final frontier”. No other continent offers
the same growth potential. Africa boasts
tremendous mineral wealth, holds 60% of the world’s uncultivated
arable land, and recorded real growth throughout the recession.
According to the latest UN World Population Prospects report,
Africa will be the fastest-growing continent “by any measure” over
the course of the 21st century, and investors are understandably
interested.
The rise of Africa is an indicator of the changing orientation of the
global economy. Africa’s raw materials have attracted the attention
of China, both as a lender and trade partner, and China’s investment
has been a critical driver of current growth. As major socio-economic
changes occur across the continent, the wealth of African society is
growing, fueled by the emergence of the middle class. According to
The Economist, over the past 10 years, six of the 10 fastest-growing
economies were in Sub-Saharan Africa, and in the next five years,
seven Sub-Saharan economies are expected to make the list. Truly,
the next decade belongs to Africa.
While many wonder if the current flood of growth can continue,
recent developments on the African continent suggest that it
can. Political stability, particularly within the DRC, Angola and
Mozambique, has encouraged investment in these large and growing
markets (Mozambique has been the fastest-growing non-oil economy
in Sub-Saharan Africa over the past 15 years).
Macroeconomic stability has enabled broad-based economic
expansion, attracted Foreign Direct Investors (FDI’s), and sustained
aid flows to fund social and physical infrastructure. Increasingly
stringent oversight from FDI’s has required African governments to
improve fiscal planning, and as a consequence, general inflation in
Africa has fallen from levels exceeding 20 percent to single–digits.
Widespread privatization has eventually proved bountiful despite
the initial hurdles encountered. And the professionalization of core
service deliveries such as telecommunications has had positive
knock on effects in other sectors.
By Charles Foster, Paul Omondi and Chris Githaiga
Millward Brown East Africa
W
OnOurDoorstep:The
AfricanGrowthStory
Figure 1: World’s ten fastest growing economies - Annual average GDP growth
2001-2010 (2010 estimate)
Angola				11.1
China				10.5
Myanmar				10.3
Nigeria	 	 	 	 8.9
Ethiopia				8.4
Kazakhstan			8.2
Chad					7.9
Mozambique			7.9
Cambodia				7.7
Rwanda				7.6
2011-2015 (Forecast)
China				9.5
India					8.2
Ethiopia				8.1
Mozambique			7.7
Tanzania				7.2
Vietnam	 	 	 	 7.2
Congo				7.0
Ghana				7.0
Zambia				6.9
Nigeria	 	 	 	 6.8
Sources: The Economist, IMF
Figure 2: GDP Growth, unweighted annual average, %
6
5
4
3
2
1970s		 1980s		 1990s		 2000s	 2011-15 forecast
Excluding countries with less than 10m population and Iraq and Afghanistan
African Countries		 Asian Countries
The continent’s dynamism is evident in its economic achievements:
•	 The emergence of large African companies, notably
•	 20 African companies with revenues of at least $3 billion
•	 More than 100 companies with revenues of at least $1 billion
•	 More than 316 million new mobile phone subscribers have signed
up with over 50 mobile service providers since 2000
Growth is expected to continue in all areas:
•	 Africa’s collective GDP will increase from $1.6 trillion to $2.6
trillion by 2020. Over the same period, consumer spending will
grow from $860 billion to $1.4 trillion
•	 Agricultural output will increase from $280 billion today to $880
billion by 2030
•	 The number of Africans of working age will exceed 1 billion by
2040, when the continent will be home to one in five of the planet’s
young people and its labour force will be the largest in the world,
topping both China and India
•	 On average, African workers are currently half the cost of their
counterparts in Central Asia, Latin America and Eastern
•	 Europe, and this presents vast opportunities for factory
investments in over 30 markets (only restrained in the North
where strict Islamic code makes for tough business).
Getting a foothold in Africa: Does one shoe fit all?
It is imperative that companies recognize that Africa isn’t one
economy or homogenous population block. It is a conglomerate
of 53 countries which, more often than not, don’t share policies
and attitudes, and have evolved differently through their social
and economic pasts. Successful brands on the continent are those
that have made strategically compatible entries into select African
markets, depending on the product category and the economic stage
of the country in question.
On Our Doorstep: The African Growth Story
Africa, just what are we talking about?
While growth is exploding throughout its various regions, Africa
remains a very diverse continent on many scores. The population of
Africa exceeds 1 billion people, who:
1B
Representover500ethnicgroups
SPEAKOVER2000
LANGUAGES
LIVEIN53COUNTRIES
(including6islandnations)
OFTHEWORLD’S
OILRESERVES
10%
40%
OFTHEWORLD’S
GOLD
OFTHECHROMIUM
&PLATINUMGROUP
METALS
90%
UPTO
OFTHEWORLD’S
UNCULTIVATEDARABLE
LAND(600millionhectares)
60%
Who and where are the consumers?
Using LSMs, we can broadly classify the African consumer into 5
groups.
It is in groups 2 and 3 that we have seen the most phenomenal
growth. The members of Group 2 are referred to as the urban poor;
it is not until you reach Group 3 that you can start referring to
the middle class (using financial sector classification based on a
household income of $5000 pa).
African households spent a combined $860 billion in 2008, slightly
more than that of Russia and over $100 billion more than India.
It is this increase in the lower-middle and upper-middle LSM
consumer base that is set to differentiate the continent from the
BRIC countries as options for investment for corporations looking to
expand further into emerging markets.
It is in groups 2 and 3 that we have seen the most phenomenal
growth. The members of Group 2 are referred to as the urban poor;
it is not until you reach Group 3 that you can start referring to
the middle class (using financial sector classification based on a
household income of $5000 pa).
African households spent a combined $860 billion in 2008, slightly
more than that of Russia and over $100 billion more than India.
It is this increase in the lower-middle and upper-middle LSM
consumer base that is set to differentiate the continent from the
BRIC countries as options for investment for corporations looking to
expand further into emerging markets.
The media and communication landscape
So how do brands reach the 1 billion Africans? According to recent
data1, radio and TV are the primary sources of information on
products and services. It is estimated that there are some 200
million radios on the continent, making radio a crucial channel in
reaching the consumer, while TVs number about 62 million – a ratio
of one TV for every 17 people (or every four to five households). Print
(newspaper and magazine) performs dismally with single-digit
reaches.
The typical consumers targeted by FMCGs are usually urbanites
with disposable incomes. Millward Brown data indicates that within
this group, the reach (defined as access during the past seven days)
of radio runs between 70 and 80% of the target population, while TV
reaches between 40 and 50%. The reach of print diverges from west
to east; in West Africa print reach averages 30% while in East Africa
it gets to the high 50’s.
Brands on the continent that have been successful at reaching
the mass market (rural and low-end) while staying relevant to
the middle and upper classes have been able to make the varying
reaches of these two key media complement one another. A great
example was MTN’s campaigns during the 2010 FIFA World Cup and
Africa Cup of Nations, where a 360° approach to the media mix was
highly successful.
While seeking to reach as much of the African population as
possible, the BBC has estimated their total reach at around 90
million across the continent. Of this, 78% is by radio, 20% by TV and
about 2% by internet. What is interesting to note is that two-thirds
of TV viewers listed radio as being equally important to them.
While TV is rarely the most cost-effective medium, it does deliver
volume in terms of quantity of impressions and ultimately response.
Analysis shows that two (or more) media is better than one.
Digital
•	 There are 84 million internet-enabled mobiles in Africa.
•	 More people have access to cell phones than to clear drinking
water
•	 40% of all businesses in Africa use ADSL
•	 12% of Kenya’s GDP moves via M-Pesa
•	 M-Pesa will move at least $1 billion in Kenya alone this year
•	 As of December 2011, there were more than 37 million Facebook
users in Africa, representing a growth of 165% over the preceding
18 months
Successful brands on the continent
The African market is dynamic and evolving, with many global
brands represented, and a homegrown market for locally
manufactured products. Africa’s top advertisers include MTN,
Globacom, Airtel, Guiness Stout and Coca-Cola, and Nokia. Africa’s
main challenges lie in its enormous size and diversity. A thorough
understanding of local cultures, beliefs, customs, economics, and
practices is required to be successful. Companies and practitioners
that have followed globalized assumptions and methods have failed
to make an impact. A key factor for success is having marketing
operations headed by locals who understand and connect with what
consumers need.
The route to market presents the greatest obstacle that companies
must overcome to build a successful business in any African market.
Given that more than 60% of people in Africa live in rural areas and
have limited access to transportation,simply covering “the last mile”
to reach the final consumer can be extremely costly and difficult for
marketers. To be successful, companies must build strong sales and
distribution networks by leveraging a mix of third party, wholesale,
and direct distribution models.
On Our Doorstep: The African Growth Story
LSM1
Group 1
Lower LSM’s
Largest group - 50%+
Mainly rural
“Appearance”secondary
Hygiene key
Low economic participation
LSM2
LSM3
LSM4
Group 2
Lower Middle LSM’s
Over one third
Equally urban/rural
“Appearance”key
Hygiene secondary
Weak economic participation
The lower middle class
LSM5
LSM6
LSM7
LSM8
Group 3
Upper Middle LSM’s
Minority but growing
More urban
“Appearance”matters
Hygiene matters
Investment is key
The“haves”
LSM9
LSM10
LSM11
LSM12
Group 4
Upper LSM’s
Minority but growing
More urban
“Appearance”matters
Hygiene matters
Investment is key
The“haves”
LSM13
LSM14
LSM15
LSM16
Group 5
Elite
Urban
Affluent, actualization, no barriers to
access what they want
LSM17
Figure 3: LSMs
In Africa, the Living Standards Measures (LSM) has been developed to better determine the socio-economic
status of a household. It is arrived at after summing up household durables, educational background and
activities that have been assigned some values. Africa has LSMs 1 – 17.
On Our Doorstep: The African Growth Story
Without doubt, Africa has been at the forefront of
telecommunications development over the past decade and a half.
The opportunity in this sector attracted Asia’s biggest player, Airtel,
into the market, making it the second-largest service provider in
Africa after MTN. MTN is the first African brand to be listed in
the 2012 BrandZ™ Top 100 Most Valuable Global Brands study
published annually by Millward Brown.
Nokia rediscovered itself on the continent after flagging sales saw
it lose its market leadership in Europe. Today they enjoy a massive
market leadership on the back of a distribution network in nearly
100% of African countries. In the beverage category there are global
brands such as Coca-Cola who have almost 100% presence in all
markets and SABMiller, a true African born-brand, with a footprint
in over 30 markets (only restrained in the North where strict Islamic
code makes for tough business).
“SABMiller’s tactic has been to buy local brands and then invest
intelligently in emerging markets rather than exporting one
homogeneous brand to every corner of the globe. The origins of the
company have played an influential role in this strategy. We were
also the first global company to see the beer market as a series of
local brands, identifying that you can’t impose a brand, a way
of thinking or business; the key is to customize things to the local
market.”
Jonathan Oates
Business Media Relations Manager SABMiller
Source: food processing-technology.com
In the banking sector a similar dynamic exists, with global brands
(Barclays in 12 markets and Standard Chartered in 14) fostering new
expansion alongside home grown brands like Standard Bank (South
Africa) and the group of Nigerian banks led by UBA and EcoBank.
The retail sector on the continent has been abuzz with the entry
of Walmart. Walmart’s $4.2-billion purchase of 51% of Massmart
now gives the world’s biggest retailer access to African markets.
But it’s been South African based chains that have been setting the
expansion trend to confirm the growth of the middle class. None
other epitomizes this better than Shoprite, which today is in 16
countries compared to one shop 1995.
Poor infrastructure in Africa means that understanding the
consumer needs may be easier than getting the product to them,
regularly and consistently. Proctor & Gamble cracked the Nigerian
market with a 10-year plan by building a dedicated supplier
distribution network – you have to be patient on the continent!
Developing innovative, low-priced consumer products and services is
also a key factor. Nokia has shown how this can truly be a profitable
and fortune-changing approach to market penetration, and shares
this space with Safaricom, whose unique money transfer product
was developed on the back of an obvious need.
For African brands to break through, they must build brands
underpinned by local insights that motivate African consumers
while delivering on a global standard. A great example is Pay-
As-You-Go, Africa’s first prepaid airtime service. Initially mobile
networks had contract-based services geared towards the wealthy,
but on a continent where formal employment is rare, mobile
telephony was for the elite. Pay-As-You-go changed this, and the
mobile telcos have never looked back. Today the concept is a key
driver in most telecoms business models.
Brand Success Case Studies on the Continent
1. The Telecoms Sector
MTN, 1OO million subscribers in Africa
In a place where the challenges of infrastructure and environment
have thrust millions of people into marginalization, mobile networks
arrived to connect individuals and societies, providing the ability
to communicate and access information. In Africa,the accessibility
of basic voice telephony that we know and take for granted, had a
transformative effect on these people and countries.
MTN is a seasoned veteran of doing business with rural consumers,
with operations in 21 markets across Africa and the Middle East.
To boost its market share among rural, low-income Africans,
MTN created services tailored to their needs. They established
a network of local agents, set up kiosks in rural areas, and gave
agents motorbikes to reach even the most remote places. Adopting a
customer-focused strategy, MTN set up as many outlets as possible
for their subscribers to gain access to their products and services.
MTN also developed lower denominations when selling airtime to
accommodate the low and unpredictable incomes of many African
consumers. They introduced innovations like telemedicine and voice-
based apps such as iCow and Xam Marse to provide rural farmers
with real-time access to market prices through the internet on their
mobile phones. Nowhere is the astounding utility of a mobile phone
more apparent that in the rise of mobile money. This mobile network
system allows customers to virtually wire cash to each other, either
from simcard to simcard or from phone to phone. MTN Mobile
Money launched in 13 countries and at the end of March 2012 had
6.2 million subscribers.
Mobile money is still in its infancy, but we are arguably looking at
the future of money and financial transactions, and it’s unfolding
on the bustling streets of Africa. In Uganda alone there are now
2 million mobile money customers, and only 500,000 banking
customers in the formal sector. Only when marketing meets with
social need do we start to see this kind of societywide traction.
Mobile telecommunications has proven to be a life-and-society-
changing phenomenon, and as MTN entered country after country,
the brand embraced its role as the champion of everyman. And at the
heart of this African business was a clear vision – not just to spread
and proliferate products or services, but to speed up the progress
of the emerging world. Companies that deliver infrastructure, like
mobile telephone networks, play a much bigger role than in just the
marketplace.
There are places in Africa where communities are yet to experience
running water or electricity.Yet they have access to an MTN Village
Phone, and therefore access to the world. MTN is also one of the
biggest employers on the African continent, training local people
to deliver on a global brand, yet keeping the company rooted and
involved in society.
Through such innovative distribution and promotional activities,
MTN has been able to capture a significant proportion of the lower
LSMs, which is a critical entry point to the African market. Half of
the continent’s 1 billion population own a mobile phone (making
Africa the fastest growing mobile market in the world after Asia),
but their use extends far beyond just telephony. The power of the
mobile is forging a new enterprise culture in Africa from banking, to
agriculture and healthcare.
2. The Banking sector
UBA United Bank for Africa (UBA) is one of Africa’s leading financial
institutions offering banking services to more than 7 million
customers via 750 branches in 18 African countries. With offices
further afield in New York, London, and Paris, UBA is connecting
people and businesses across the world through retail and corporate
banking, innovative cross-border payments, trade finance, and
investment banking.
Over the past three years, UBA has undergone a period of rapid
expansion that had seen affiliate banks in 16 African countries come
on board. The consolidation of UBA’s affiliates under one brand and
the implementation of consistent policy and standards enabled the
bank to make phenomenal changes between 2008 and 2010. This
was especially meaningful given that during that period Nigerian
Banks experienced a run from customers that forced the Central
Bank to intervene and culminated in jail sentences for some senior
managers. The success of the Bank has seen Tony Elumelu, the MD
during this volatile period, become a much sought-after business
and motivational speaker across the continent.
3. Retail Sector – Shoprite
The Shoprite group is today Africa’s biggest food retailer, with
operations in 16 countries, including Angola, Botswana, Ghana,
Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia,
Nigeria, South Africa, Swaziland, Tanzania, Uganda, Zambia,
Zimbabwe and the Democratic Republic of the Congo.
Shoprite began by consolidating its market leadership in its home
market of South Africa by uniquely targeting the middle to bottom
end of the local food retail market. In addition, the group sought
further efficiencies through employing a central distribution
strategy.
Essentially, central distribution involves owning a series of
warehouses to which suppliers make their deliveries. Trucks are then
sent out to stores as stock is required, rather than depending on
suppliers’ schedules or reliability.
This not only ensured that Shoprite controls its own supply chain
but has also reduced the costs associated with stores needing to
incorporate enormous loading and storage areas to hold large
inventories. Shoprite also diversified into other target market
outlets, with the result that the retail outlet became a one-stop
convenience store and their money market counter provided links to
other service providers.
Where the continent is headed
Foreign investors are no longer just interested in oil wells and mines
in Africa, but are looking at medium-sized bets on consumer goods.
Analysts are consistent in identifying Retail, Banking and Telecoms
as sectors that will drive the African economies forward in the next
decade, and these sectors are consistent with the identified growth
paths taken by key African economies.
Global companies are including Africa in their growth strategies as
consumer demand in more mature markets struggle post the global
recession, and the growth of the African continent is driven as much
by commodities and technology as it is by improving governance and
the spread of democracy. And economic change has made life more
rewarding for Africans themselves. The continent is truly opened for
business!
On Our Doorstep: The African Growth Story
Article reprinted with permission from
Warc, August 2012, www.warc.com
Sources: McKinsey,The Economist, IMF, Millward Brown, BrandZTM
, BBC, Synovate,
ITCWorks,The Jupiter Drawing Room
Luxury brands are thriving as
consumers save their money for
special items. Nick Cooper, Managing
Director of Millward Brown Optimor,
Europe, explains which brand
strategies work best.
LUXURY
STRATEGIES
EMERGING
Insights from BrandZ
Luxury brands grew by 15% in this year’s BrandZ Top 100 Global Brands,
more than any other category. Louis Vuitton bagged the top spot as the
world’s most valuable luxury brand with a value of $25.9bn.
The Most Valuable Luxury Brands 2012
Underlining the health of the sector, Hermès at number two in the luxury
category, with a 61% rise in brand value to $19.2 billion, gained the most
places in the Top 100 ranking of all brands. It is now ranked 32nd, up 39 places.
A number of factors are behind the success of the luxury sector. After several
years of economic difficulty, North Americans and Europeans who could afford
luxury indulged. In addition, in China and other fast-growing markets, sales
rose as the expanding middle classes continued to indulge their appetite for
luxury brands.
While shoppers have become smarter in the way they choose brands – with
considered rather than conspicuous purchasing – they are still determined to
spend, but spend more wisely. Many have focused less on collecting luxury
labels and more on creating a unique personal look that often mixes luxury
brands with more affordable options. What luxury brands have to do is tick the
key boxes of quality craftsmanship, heritage and history – and thereby meet
the expectation of being seen as a good investment, with the trend towards
classic pieces rather than high fashion. In particular, young professionals who
are increasingly unable to purchase property, are spending their disposable
income on affordable products from luxury ranges offered by brands such as
Prada, D&G, Hermès, Gucci and Louis Vuitton.
Despitetheeconomicturmoil,
luxurybrandsarethriving.
Category rank Gobal rank Brand Value in $
million
Brand value
change from
2011
1 21 LouisVuitton 25,920 +7%
2 32 Hermès 19,161 +61%
3 - Rolex 7,171 +36%
4 - Chanel 6,677 -2%
5 - Gucci 6,420 -14%
6 NEW Prada 5,788 n/a
7 - Cartier 4,843 -9%
8 - Hennessy 4,596 -8%
9 - Moët & Chandon 4,217 -8%
10 - Burberry 4,090 +21%
Emerging Luxury Strategies
LouisVuitton
designedastore
onMarinaBay
inSingaporeto
resembleacruiseship,
reflectingthebrand’s
travelheritage
What luxury brands have
to do is tick the key boxes
of quality craftsmanship,
heritage and history –
and thereby meet the
expectation of being seen
as a good investment,
with the trend towards
classic pieces rather than
high fashion
Luxury trends
There are a number of emerging trends that are visible in the 2012 figures, or
are becoming more powerful drivers of performance.
•	 First, given that most luxury brands are European in origin, the continuing
decline in the value of the euro has prompted extra sales volumes as they
become more affordable.
•	 Second, the decisive movement of luxury brands into digital offerings has
created added interest and accessibility.
•	 Third, products for men have grown dramatically, outpacing the larger
market for female products.
•	 Fourth, the fact that luxury brands do have overt heritage and
craftsmanship as part of their DNA has been leveraged more explicitly, with
significant movement of high-end manufacturing returning to Europe (a
trend also helped by the weakening euro).
With healthy demand, brands have expanded their presence. They have
opened new stores, engaged with e-commerce and invested in advertising.
Burberry, for example, extended the brand’s appeal, creating a youthful virtual
world in which customers experience
the brand by viewing fashion shows,
for example. The brand added a
new twist to its iconic trench coat
with Burberry Bespoke, an online
facility that enables the customer to
assemble a unique trench coat online,
selecting style, fabric, colour and other
individualizing options.
Brands have also attempted to
unify the advertising and online
expressions of the brand with the in-
store experience. Louis Vuitton, for example, designed a store on Marina Bay
in Singapore to resemble a cruise ship, reflecting the brand’s travel heritage,
which is also celebrated on the LV website. Many luxury products companies
want to take greater control of the brand, shifting away from licensing and
franchising. Burberry, Prada and Hermès are good examples.
Emerging Luxury Strategies
TheLouisVuittonstoreonMarinaBay,Singapore
Emerging strategies
The core conundrum facing luxury brands, however, remains the same. They
must achieve the right balance between protecting the exclusivity that, to an
extent defines luxury, and making the brand experience accessible to a wider
audience. The implications will vary from brand to brand but it is possible to
identify five clear themes for luxury strategists:
•	 While a great deal of focus is going into expanding owned-stores networks
in fast-growing markets, leading brands are investing significantly in
creating new or revamped flagship stores in Europe. Nothing beats the
cachet of buying a luxury brand in its home market.
•	 As demand grows, many brands are more clearly segmenting their ranges,
whether it is by age or price or gender, in order to preserve the aspirational
appeal of the mother brands, as well as taking direct control of the customer
experience through owned-stores networks.
•	 Luxury brands are finding they need to become experts in managing wide-
ranging portfolios. The leading luxury brands are now enormous businesses
in their own right, and have to reconcile the competing demands of the
artistry and specialization that created the brands in the first place with the
pressures of managing and generating momentum for big business.
•	 The distinction between luxury and fashion brands is becoming increasingly
blurred, which opens up new opportunities. Indeed, a common hallmark
of successful luxury brands is the ability to bridge multiple product sectors.
Those that stay too wedded to their roots risk being left behind. Standing
still is not an attractive option.
•	 Finally, the increasing accessibility of major luxury brands (whether it is
through growing store networks, wider product ranges and prices, or
successful social media initiatives) is creating opportunities for niche, super-
exclusive brands to spread their wings. It will be fascinating to see how
the future competition between Rolex and Patek Philippe will develop, for
example.
The one certainty for the luxury market is that the appetite of the world’s
middle and upper middle classes for luxury products is a long way from being
sated.
Article is reprinted with permission from a
June 2012Warc exclusive, www.warc.com/
Emerging Luxury Strategies
hen the Costanera Center is inaugurated, not
long from now, Chile will have the tallest
building in Latin America. The 70-story tower is
part of a mixed-use complex of retail and shops
in the financial district of Santiago.
Chileans refer to the area as “Sanhattan,” a reference to Manhattan
and a symbol of how rapidly the country is reaching higher levels of
development, with fast highways, enormous shopping malls and tall
skyscrapers.
As income increases at all socio-economic levels, people throughout
Chilean society enjoy greater access to products and services that
in the past were out of reach for many. Cars, smartphones and
electronic devices are widely available. Going out to dine or have
a drink is no longer restricted to a few; flying domestically or even
abroad is not only a privilege of the richest.
And the consumer has become more engaged with technology.
Mobile phones have long exceeded 100 percent penetration; many
people now have smartphones. Notebooks, digital cameras, portable
media players and tablets have become necessities rather than
luxuries. Home computers and Internet connection are common.
Chilean statistics on the use of Internet and social networks—
mainly Facebook—tend to resemble those of developed countries
rather than regional neighbors. That’s because the shopper needs
to be connected. Social networks are already a part of daily life
and consumers link to brands through them. Consumers use social
networks to learn more about products and services, and most of all
Grey Group is among the world’s top to contact other consumers and
share experiences.
Retailers extend influence
Retailers have a lot to do with all these changes. They have
formalized trade, moving most transactions from the traditional
“mom and pop” economy to supermarkets and shopping malls. And
they’ve extended their influence throughout South America. Chilean
retailers operate in Peru, Argentina and Colombia and are planning
expansion to Brazil and Mexico.
They also have helped improve the lives of most Chileans, providing
greater access to products by providing credit. Retailer credit cards
are accepted widely and are twice as numerous as bankcards.
Economic progress recently has been punctuated by several major
scandals involving retailers and by protests against the government
demanding greater equality of opportunity. The retail scandals
involved a pharmacy charged with price fixing and a clothing
retailer accused of revising credit debt without informing its credit
card customers. Students have held street demonstrations arguing
for a more equitable education system.
W
By Rodolfo Levin, General Manager Cadem Advertising, Millward Brown
A nation of connected consumers
symbolizes
“Sanhattan”
new
Chile
in South America, and in many ways follows the trends of more developed
markets. Most Chileans access the Internet by PC, although 13percent of
Chileans now access it via mobile.
Time online is heavily focused on communication and entertainment, with 6.6
hours a week spent on social networks such as Facebook. Chileans particularly
like consumer-generated videos, more often than not shared on YouTube.
And 45 percent of the online population view these videos on a weekly basis
compared with only a third of consumers who view professionally created
videos.
In most markets, consumers decide to become a friend of a brand because of
a special offer or promotion. In Chile, however, 41 percent of consumers are
more interested in finding out further information about a product or service.
Chileans are less active in both writing and reading about brands on the
Internet, compared with consumers in many other countries. However,
41 percent of Chileans use a brand website during the purchase journey,
indicating that companies must provide sufficient brand and product-related
information for the consumer both pre and post purchase.
Brand websites
influence purchasing
TNS Digital Life
Figure 1: Internet Investment
2005		 2006		 2007		 2008	 2009	 2010	 2011
40bi
35bi
30bi
25bi
20bi
15bi
10bi
5bi
0
30%
TV still receives more than 50 percent of media investment in Chile, but Internet is
growing sharply because such a large proportion of the population has Internet
access and is engaged on social networks. Internet investment reached 35 billion
Chilean pesos (US$68 million) in 2011, compared with only 5 billion Chilean pesos
(US$10 million) in 2006.
Source: Mindshare, ACHAP (Acociación Chilena de Agencias de Publicidad)
Investment(ChileanPesos)
6.6		Social Networking
2.8	 	Email
1.6		Multimedia & Entertainment
1.0		Online Gaming
2.1		Personal Interest
0.2		Shopping
0.4		Pre-purchase Browsing
2.0	 Knowledge & Education
1.3	 News, Sport & Weather
0.6	 Personal Admin
0.7	 Planning & Organising
First published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report
People in Chile predominately spend their online time engaged in communication,
particularly social networking, and entertainment. This devotion to social networking
is consistent throughout Latin America compared with other parts of the world. For
brands it provides opportunities to connect with consumers through social networks or
entertainment 24/7.
onsumers in Colombia are rapidly becoming more
engaged with brands.
The change reflects the country’s new economic
reality. Consumption in Colombia increased 12.8
percent during 2011, and GDP grew 6.1 percent,
according to Colombia’s National Federation of Traders (FENALCO).
The country’s overall economic development, including increased
foreign investment and consumer access to credit, continues to
stimulate strong growth.
As consumers encounter brands more often at many multi-channel
touch points, Colombia is shifting from a country where consumers
simply purchase products to a market where consumers identify
with brands.
This heightened awareness of brands has created a more demanding
shopper and a more complex marketplace with brands competing to
best understand shoppers and most effectively meet their needs and
wants.
Time spent on social media grows
An important cultural shift—increased technical literacy—informs
this greater involvement with brands. As PC use and Internet
access expands rapidly, the exposure to information and knowledge
produces profound societal change.
In the last 15 years, Colombia transformed from a closed country
to a partner in free trade agreements with some of the world’s
largest markets. Internet and cable TV superseded television as
the preferred electronic medium, providing Colombians with wider
exposure to products and services—and brands.
More than 96 percent of Colombia’s online population uses social
networks sites, according to ComScore. The use of social networks to
communicate with consumers is experiencing double-digit growth,
according to the Colombia’s Interactive Advertising Bureau.
Also, among all countries in the world, Colombia ranks seventh in
numbers of hours spent on Facebook, averaging 8.4 hours per month,
surpassing even Mexico and Brazil, according to the 2011 Firefly
Millward Brown global study of social media. This penetration
reflects how social media connects with a national culture that
values entertainment, social connections and a sense of belonging.
Great opportunity awaits brand marketers
These findings have driven increased interest by brands to better
understand how to develop the appropriate digital strategies to
maximize ROI. Brand marketers have a great opportunity to reach
Colombian consumers on social media for two reasons.
First, Colombian consumers are actively engaged in social media.
The country has one of the highest Internet penetration rates in the
region. Second, the country has one of the lowest investment rates
in digital media. In 2011, only 0.9 percent of the communication
investment was in digital compared with 7 percent in Mexico and 6
percent in Brazil, according to GroupM research.
There probably are several reasons for this disconnection between
the high level of consumer digital engagement and the low level of
investment. The most likely explanation is that Colombia’s image, as
a country gripped by violence, has not caught up with Colombia’s
new reality as a fast growing economy.
The conclusion for brand marketers should be clear: In Colombia,
there’s a large group of potential customers online who are
interested in brands and there’s relatively little clutter preventing
you from reaching them.
C
By Gabriel Castellanos
Managing Director Andean Region, Millward Brown Colombia
EconomicGrowth
DrivesBrandAwareness
Marketers reach consumers with social media
First published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report
razil’s rising middle class increasingly drives the growth
of brands. More than 100 million people, or about half
the country’s population of roughly 191 million, now are
considered middle class.
These households earn an income of at least 1,128 Reais per month
(US$727), which locates them in socio-economic Class C, Brazil’s
official designation for middle class. Many of these households have
recently risen from poverty, which the Brazilian government calls
Classes D and E. Households in Class D earn around 798 Reais per
month (US$514); those in Class E earn less than 486 Reais (US$313).
Even with fluctuations in the economy, these changes are narrowing
the inequities of Brazilian society, expanding the number of people
in the middle while reducing the ranks of both the very poor and the
very rich, and exposing many more people to consumer goods and
brands for the first time.
pOLiCiEs and prOgraMs drivE ChangE
The economic stability resulting from the Plano Real (1994)
drastically reduced the runaway inflation of prior years to
acceptable levels. With inflation under control, Brazilian consumers
feel more inclined to save or purchase on credit. Other factors that
contribute to the health of Brazil’s economy and the overall rise in
income and purchasing power include:
•	 The steady growth of GDP (US$2.2 trillion; US$10,800 per person),
demonstrating the evolution of the country’s productivity;
•	 The availability and ease of obtaining credit; and
•	 The strength of the Brazilian Real, which facilitates access to
imported brands and opens up the possibility of tourism outside
country.
Particularly significant is the government’s anti- poverty program
called Bolsa Família, which provides supplemental financial support
to more than 12 million underprivileged families throughout Brazil.
The families access the funds with a government-issued ID that
acts like a debit card. Bolsa Familia changes how people shop and
increases their purchasing power. Using the card frees a family from
shopping daily with available cash or being dependent on store-
issued credit, sometimes at high interest rates.
Brands OFFEr MOrE than BasiCs
Brands traditionally treated the middle class as if it represented
limited sales potential. Brands served these consumers with
simpler packaging and smaller sizes, offering the basic benefits of
the respective category and no added value, with the intention of
keeping prices affordable.
Today, the nature of the middle class has changed. Middle class
individuals desire premium products and can afford them. They
consider high added value brands as a basic part of the household
needs. Brazilian consumers prefer the leading brands, with
appealing advertising, strong equity and good distribution.
Disposable income not only has increased purchasing, it has
changed the composition of the shopping basket. Certain items, such
as dairy cream, ready sauces, facial and body creams, seasonings,
chocolate mixes and yogurts, had been purchased only occasionally.
Now they are part of the family’s habitual grocery list.
MOrE Luxury gOOds and sErviCEs avaiLaBLE
Shoppers fill “wants” as well as “needs.” Beauty and cosmetic retail
departments are more prominent, even in stores with lower income
clientele. Similarly, the number of salons recently opened in less
privileged neighborhoods is extremely high as women increasingly
spend money to beautify their hair and nails. They believe that
spending on appearance is an investment and part of the process of
social inclusion, according to qualitative studies by Firefly Millward
Brown.
Economic stability also has opened up access to aspirational
consumer goods. The dream of acquiring a brand new, low-priced
car can become a reality in 60 or more installments with few formal
prerequisites. The payment of the installments—“the amount I am
able to pay”—is viewed as a form of savings, even if the interest rate
and final total amount paid can be excessive.
Getting into debt, making too free use of credit or credit cards
has always been a serious threat for those with limited financial
means. Credit has become an option, however, because of reliable
employment and income stability. Despite easy access to credit and
the widespread availability of credit cards, lower income consumers
remain somewhat skeptical of the financial institutions that denied
them credit in the past.
thE nEW MiddLE CLass has ChangEd rEtaiLing
The collective clout of middle class consumers has influenced major
retailers to reevaluate their standard formats and focus their efforts
on the growth of so-called “atacarejo,” a hybrid model combining
wholesale and retail in no-frills megastores.
At the same time, the major retail groups have begun to invest in
smaller stores with limited assortment intended to conveniently
serve the more immediate needs of local residents.
Regardless of expectations about the global economy, Brazil’s new
middle class is not a passing phenomenon. It expects much and its
expectations will influence brands and corporate strategies for a
long time.
B
By Aurora Yasuda
Business Development Director, Millward Brown Brazil
And how new expectations
impact brands
TheRising
MiddleClass
First published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report
exico offers excellent conditions both for business
and investment.
With over 113 million inhabitants, Mexico is the
largest Spanish-speaking country in the world. The
population is geographically concentrated. One-
quarter of the nation lives in one of three cities. About 20 million
live in Mexico City. Guadalajara and Monterrey each have over four
million inhabitants. With a median age of 26, Mexico is relatively
young.
And people are connected, with 94.6 million mobile phone numbers
and 11.5 million cable and satellite TV homes. Internet users total
34.9 million. Open to international trade, Mexico ranks second in the
world in number of free trade agreements. These agreements grant
Mexican businesses preferential access to over one billion customers
in 43 countries.
Mexico is the world’s largest silver producer and ranks sixth in oil
production. It’s a major tourist destination, having the most UNESCO
World Heritage Sites in the Americas and ranking fifth worldwide.
By 2020, Mexico will become the world’s seventh largest economy,
contributing 7.8 percent to global GDP, Jim O’Neill, Chairman
of Goldman Sachs Asset Management, predicts. He based this
prediction on the fact that, despite the recent global financial
crisis, Mexico’s economy has maintained its stability and in several
variables has shown evident signs of recovery.
Economy evolving to innovation focus
The Mexican economy is evolving to the third and most evolved
stage of economic development, a focus on innovation, according to
the Global Competitiveness Report 2011-2012 of the World Economic
Forum, which places countries such as Argentina, Brazil and Chile in
the same category.
The report also credits Mexico for reducing government regulations
and improving the conditions for doing business, although it notes
that security continues to be a difficult issue. Many companies that
have transferred their manufacturing processes to Mexico say that
the country reduced their labor costs significantly.
They credit the country’s infrastructure for helping to optimize
distribution costs. That infrastructure includes 26 domestic
airports, 59 international airports, 16 international seaports, 27,000
kilometers (16,800 miles) of railways, 123,000 kilometers (76,000
miles) of roads and 52 crossing points to the US.
Changes influence brand trends
These economic changes influence brand trends. “Olympic” brands
such as Coca-Cola and Apple are still the most popular among the
general population. However, there is a large group of brands that is
migrating towards a “Niche” or “Specialist” space in which they serve
a specific group of people. In a country as large as Mexico, it’s hard
to find brands that appeal to the entire population. Two recent brand
trends reflect changing consumer living styles and focus especially
on two areas: practicality and personal health.
People are busy. They hardly have enough time in a day to get
things done at home or at the office, care for family and friends, and
then find time for themselves. They look for time-saving products
that help them better manage their busy lives. This practicality
is apparent in products like ready-to-eat meals, such as granola
bars and drinkable yogurts, as well as in all-in-one shampoo and
conditioners and fast-dry, long-lasting nail polish. People also now
realize that while leading busy lives they’ve adopted some unhealthy
habits. They’re looking for ways to improve personal health.
This interest can be seen in products such as vitamin-enhanced
cereals, body lotions made with natural ingredients, low-sugar soft
drinks and chocolate bars and more natural foods.
TV remains key, but Internet growing fast
Of all product categories, personal health leads in advertising
spend, followed by cellphone services and banks. Genomma Lab, a
pharmaceutical company, is Mexico’s number one advertiser,
spending more than P&G, Unilever, Colgate-Palmolive and Bimbo, the
bakery brand, together.
TV remains the predominant media channel with overwhelming
dominance. TV accounts for 62.5 percent of advertising media
investment compared with radio, its nearest rival, at 9.1 percent
market share. The other channels and their shares include:
outdoor, 8.9 percent; newspapers, 7.8 percent and Internet, 6.9
percent.
Internet is growing at the fastest pace, with 17.8 percent year-on-
year growth in 2011, followed by cinema at 14.9 percent growth and
outdoor at 8.9 percent. TV spending grew 5.4 percent in 2011, after
three consecutive years of decline.
By Fernando Alvarez Kuri, Director, Millward Brown Optimor
M
LargeandOpen
MarketOffers
Opportunity
New consumer trends
emerge as economy expands
LargeandOpen
MarketOpportunities
New consumer trends emerge as
economy expands
First published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report
PP social media monitoring company, Visible
Technologies, carried out an audit of the digital
social and traditional buzz for each of the Top
100 brands over the last year. From this we have
created an “Earned Buzz Index”, weighted by
positive mentions, together with the Millward
Brown BrandZ™ measure of online fans (FanZ Index).
As might be expected, the brands with more fans created more
“Earned Buzz.” But the crucial finding is that brands with more fans
and “Earned Buzz” levels are much more valuable. And brand value
growth is significantly better if buzz is better. The Top 10 “Earned
Buzz” brands grew on average by 5 percent in value last year, while
the bottom 10 declined 8 percent.
The future also is brighter. The Brand Momentum Index measures
the prospects of future earnings on a scale of 1 to 10, 10 being the
most positive score. The Top 10 “Earned Buzz” brands averaged a
score of 8 in Brand Momentum compared with a score of 6 for the
bottom 10.
So what are the“Earned Buzz”Top 10 brands?
They are completely dominated by US technology brands, and even
the one retailer, Amazon, is fundamentally a technology brand. The
entertainment brand Disney is also becoming heavily dependent on
the digital space.
W
By David Barrowcliff
Specialist: Social Media Measurement, Millward Brown
The 2012 BrandZ™ Top 100 Most Valuable
Global Brands comprises many of the great
and the good, the different and the special,
and the most talked about.
Buzzmeans
money:
Social and digital media,
vital to the health of
successful brands
2012 BrandZ™ Top 100 in groups of 10 by level of“buzz.”
Brands with higher value have more fans and more“Earned Buzz.”
More buzz and fans means more value
THE“EARNED BUZZ”TOP 10
RANK CATEGORY BUZZ INDEX
(average 100)
1 FACEBOOK 1,331
2 GOOGLE 1,229
3 APPLE 1,093
4 eBAY 475
5 microsoft 442
6 sony 437
7 amazon 425
8 samsung 301
9 HP 282
10 DISNEY 280
FANZ
VALUE $511bn
$112bn
EARNED BUZZ
First published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report
EVERY BRAND HAS A PERSONALITY.
It’s part of how consumers perceive the brand and how the brand
differentiates itself from the competition. Accurately understanding
brand personality is important to brand success. That’s why
we created a vocabulary for quantifying and describing brand
personality. Recently we’ve added a related visual language called
Brand Toys (Please see Brand Toys).
Being able to measure something as important—but as intangible—
as brand personality enables brand owners to ask important
questions that can strengthen competitive advantage:
Understanding brand personality also helps select the most
appropriate message and media, or more effective and suitable
sponsorships or partnerships. Ultimately, understanding a brand
personality enables the brand owner to deliver a consistent brand
experience that connects with consumers and leaves a deeper and
more sustainable impression.
Brand personality characteristics
often suggest a brand’s latent appeal.
When identified and cultivated they
can effectively guide the creative tone
of communications. For example,
Mercedes is relatively “assertive” and “in
control,” while BMW is more “sexy” and
“desirable.”The brands have different
and differentiating personalities.
Mercedes confidently plays on its
heritage with the fitting tagline, “The
Best or Nothing.” In contrast, “The Ultimate Driving Machine”
accurately captures the BMW personality.
Background
As part of our extensive and on-going global BrandZ™ research,
we measure the personality of thousands of brands. We base the
research on authoritative psychological personality profile testing.
Adapting the results to be relevant for brands, we ask, if the brand
were a person what kind of personality would it have?
We begin with 20 personality characteristics. Then we combine the
characteristics into 10 brand personality archetypes (Reference
Brand Archetypes chart below). For example: The related personality
characteristics “generous” and “caring” combine into the brand
personality archetype “Mother.” Similarly, we use the brand
archetype “Hero” to represent brands that are “adventurous” and
“brave.”
Brand archetypes
Then we take one more step. After combining brand personality
characteristics into brand archetypes, we show how the archetypes
relate to each other by lining them up along two axes: the polarities
of one axis are stability and change; the other, well-being and
challenge. For example: The archetypes “Dreamer” and “Joker” are
associated with change, while “King” and “Wise” are more about
stability. Similarly, the archetype “Mother” represents a mix of
stability and well-being, while a “Seductress” is both challenging as
well as a potential driver of change.
Brand personality
characteristics often
suggest a brand’s
latent appeal.
Mercedes is relatively
“assertive” and “in
control” while BMW
is more “sexy” and
“desirable”
By Peter Walshe
Global BrandZ™ Director, Millward Brown
CHANGE
STABILITY
CHALLENGEWELL-BEING
Is the personality consistent worldwide? If not, how does it vary?
Is it unique and can it become more unique?
What is the brand’s personality?
Brandpersonalitycharacteristicsarecombinedinto10brandarchetypes,
whicharethenarrangedaroundtwoaxes.Source: BrandZ™ data
Mercedes’assertivepersonalityinfluencestheircreativetone
BrandArchetypes
BrandPersonality
Unlocking key traits for
success and value
JOKER				Fun, playful
SEDUCTRESS		 Desirable, sexy
REBEL				Rebelious
HERO				Adventurous, brave
WISE				Trustworthy, wise
STABILITY			 In control, assertive
MOTHER			 Caring, generous
FRIEND			 Straightforward, friendly
MAIDEN			 Innocent, kind
DREAMER			 Idealistic, different, creative
Archetypes and success
Brand archetype doesn’t by itself determine success. And successful
brands can fit anywhere on the spectrum of archetypes. But
inevitably some brands are just more compelling. The recent
BrandZ™ Strength of Character analysis of over 14,000 brands
worldwide identifies several archetypes that, in diverse ways, are
associated with brand success.
The “Wise” archetype (particularly trustworthy) is most
unequivocally correlated with brand success. “Wise” brands
include Google, China Mobile and Visa. The Seductress brand (sexy
and desirable) is more of a specialist but revels in being distinct,
different and attractive. It describes L’Oreal, Louis Vuitton and Zara.
In contrast, the “Maiden,”“innocent” and “kind,” is not as strong.
Many retailer own brands fit this brand archetype. “Friend” brands
are “friendly” and “straightforward”, and usually very well known.
They include Airtel, the Indian telecom, Home Depot and KFC. But
“Friend” brands generally are declining in equity.
Archetypes and equity
Brand archetypes correlate with brand equity. Brands with these
archetypes— “Seductress”, “Wise,”“King” and “Mother”—typically
have strong brand equity. In contrast, brands with “Joker,”“Rebel”
and “Maiden” archetypes have lower equity. There are exceptions, of
course, but the rule is useful (Reference Strength of Character chart
below).
On average, the BrandZ™ Top 100 most valuable global brands fall
in the middle of the Strong Equity quadrant of the Strength of
Character map, between the “Wise” and “King” with a strong dose
of the personality characteristic “desire,” which is an aspect of the
“Seductress” archetype. In personality, the Top 100 brands are on
average, significantly more “in
control, “assertive,”“trustworthy,”
“wise” and “creative.”
In terms of brand archetype,
the Top 100 can be summarized
as “Wise Kings.”This summary
is especially true of the B2B
leaders. IBM, is a “King” because
of its high levels of “trust”
and “wisdom” together with
its “idealistic” positioning.
Exxon Mobile is also a “King” but less “idealistic” and much more
“assertive,” while Royal Bank of Canada is an “in control”“King.”
As noted, there are exceptions to the rule and they include some
of the most valuable brands that define their category. As the
approachable “Joker,” Facebook is “fun,”“playful” and “friendly.”
The “Dreamer” Apple is “creative,”“adventurous” and “desirable.”
Red Bull, the “Rebel,” is “adventurous” and “brave,” if a bit
“arrogant.” Being “straightforward,” which implies honesty, is a key
characteristic of the “Friend” archetype, which describes Amazon
because of its great service, range and recommendations. Being
seen as “generous,”“kind” and “caring” makes Colgate the ultimate
“Mother” brand archetype.
Understanding a brand
personality enables the
brand owner to deliver
a consistent brand
experience that connects
with consumers and
leaves a deeper and more
sustainable impression
Strengthofcharacter
GROWINGEQUITY STRONGEQUITY
DECLININGEQUITY
CHANCESOFSUCCESS
RELATIVEFAME
TOP100AVERAGE
LITTLEEQUITY
Brandarchetypescorrelatewithsuccessandequity.
Source: BrandZ™ data
Brand Personality
Brand Personality
Brand Toys provide a new tool
for understanding brands
As visual representations of brand personality, Brand Toys stimulate creative
thought that can lead to new marketing and strategic insights.
Brand Toys are created based on brand personality characteristics from BrandZTM
data combined with an index of social media buzz. This information dictates the
Brand Toy’s size, shape and expression. Eyes widen to indicate charisma, while
height increases and legs thicken to project trustworthiness, for example. Various
body shapes signify the brand’s potential and its familiarity. Expressions change or
accessories are added to suggest various qualities. Depending on style, a hat might
symbolize assertiveness or caring.
For example: BrandZ™ data says Coca-Cola is particularly“desirable,”“adventurous”
and“fun.”The Coca-Cola Brand Toy has the sunniest disposition, a“smiley”badge, a
“lipstick” kiss on its cheek and is clearly a fun toy. The Brand Toys visualization is as
effervescent as the drink. It overflows with smiles. Although the Coca-Cola brand is
more than 125 years old, its Brand Toy reflects the ever-youthful image that helps
Coca-Cola hold its own in brand value with newcomers such as Google, Amazon
and Facebook. It commands a good price premium but is rated as very well priced
because of the immense desire the brand creates. Happiness for the shareholders
comes in an investment that is Coca-Cola shaped.
In contrast, UPS, which is particularly “in control,” “trustworthy” and “wise,” is an
approachable hulk, with thick trustworthy legs, bright open eyes suggesting
considerable charisma, and a careful tie and prize winning ribbon, which also
recognizes trust. The Brand Toy is holding a timepiece to show reliability and
punctuality in taking care of you and your shipping.
www.brandtoys.com
First published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report
d effectiveness studies have been used for more
than a decade to measure the branding impact of
online campaigns. Results from these studies, as
well as aggregate industry knowledge, have helped
advertisers design better media plans for future
campaigns. Enter real-time data, which allows us
to learn what’s working in a specific campaign, and make changes
while it’s still in market. These changes help advertisers save
money by reducing wasted, ineffective impressions and ensuring
that the right message is delivered to the right consumers. But,
there are rules that should govern the correct way of optimizing
online branding campaigns and at the end of the day; optimization
is part data and part instinct. The numbers alone shouldn’t be the
exclusive guide to your decisions. Common sense and experience are
often just as important and should guide you through the following
considerations for campaign optimization:
DEFINE CAMPAIGN SUCCESS CRITERIA AND KEY PERFORMANCE
INDICATORS
How will you know that your campaign is effective or not effective?
What should you be looking for? Is any incremental increase in the
metrics going to be sufficient? These are all important questions to
answer prior to making any changes to your campaign mix. When
assessing performance of sites or creative formats, benchmarks are
inherently built into the campaign because you can compare each
one against each other. However, shifting impressions around within
a failing campaign is a waste of time. Campaign-level normative
benchmarks are useful to assess whether your campaign, as a whole,
is among the top or bottom performing campaigns in the brand’s
industry. Normative databases can be used for benchmarking as
well as planning what magnitude of change to expect. It’s important
to use not only normative data, but also your own experience with
the brand, to create hypotheses of what results you expect from
the campaign. This will give you something specific to test against.
Often, testing a more quantitative goal, such as “increase purchase
intent by X points,” results in more insightful findings than just
“increase purchase intent.”
ASSESS WHAT YOU HAVE THE POWER TO CHANGE
Sites’ insertion orders usually include an impression level
commitment, so a change as drastic as pulling a site from the
campaign usually isn’t possible. However, agencies can usually
move impressions across sections or placements within a site.
Agencies with longer-term site contracts can also sometimes shift
impressions from one campaign to a future campaign if the site
appears to be a poor fit for the campaign in question. If there are
multiple creative executions in the campaign, agencies can easily
shift impressions between iterations, especially within the same
size unit. If a campaign is really performing poorly, though, often a
change to the creative design is
needed. Ideally, creatives should be
pre-tested to ensure that the best
executions go into field to begin
with, minimizing subsequent
changes.
There is a lot of emphasis in
our industry on mid-campaign
adjustments because online
creative can be redesigned
inexpensively and relatively
quickly. The reality, however, is that this seldom happens and
results in a lot of money being wasted on ineffective media. The
best practice is to put pre-tested creatives into field, and include the
creative agency in your optimization plan so that they can be “on
call” to make tweaks to the design if the results suggest it’s needed.
When setting up an ad effectiveness study for your
campaign, remember to communicate to your research partner what
types of changes you’re considering so that they can design an
appropriate sampling plan, survey, and results dashboard against
the objective.
A
By Michelle Eule
Senior Vice President, Digital Solutions, Millward Brown
Ideally, creatives
should be pre-tested
to ensure that the
best executions go
into field to begin
with, minimizing
subsequent changes
WhyOptimization
isPartDataand
PartInstinct
MINIMIZE CHANGE
The ability to optimize should never replace thoughtful media
planning prior to the campaign. Throwing everything in and waiting
to see what works will result in a lot of wasted media spend. The
best campaigns will usually be those with the best initial media
plan, and optimization will involve simply fine-tuning the mix.
Complete overhauls should be limited to rare disasters, and most
campaigns should require limited changes.
DON’T MAKE HASTY DECISIONS
It’s tempting to start making changes just a few days into a
campaign in order to benefit early from optimization and reduce
waste. But, branding effects don’t set in overnight. Frequency is
one of the most important factors in campaign performance. A
comparison of message association impact on CPG campaigns shows
incremental increases in impact from the first exposure to more than
10 exposures.
Lauren Hadley, associate director of integrated insights at Starcom
says, “Let the campaign build how it was planned to build. Don’t
optimize prematurely.” Optimal frequency levels vary by industry,
brand tenure, campaign objective, and even creative format. For
example, the results in the chart above suggest that changes
shouldn’t be made before at least four exposures have been delivered
to a majority of a CPG campaign’s audience. Analyze historical
normative data to home in on the optimal frequency level to expect
for your brand’s campaign.
KNOW WHEN TO SAY“WHEN”
Don’t over optimize. Observe, change, observe. Stop. Observe, change,
observe. Stop. We recommend two sets of optimization periods per
three-month campaign.
USE TRUSTED DATA
Be cautious about the quality of the data that you’re using. Don’t
be tempted by cheap studies that sacrifice the quality of the data
that’s delivered. Shorter surveys are best for optimization because
they garner higher response rates
and, therefore, earlier results. But a
survey that’s too short and only asks
one or two questions can leave you in
the dark about who the audience is,
and whether the results are reliable.
In ad effectiveness studies, it’s
critical that the control and exposed
groups are recruited from the same
sites and have similar audience profiles. Demographic and category
usage questions, and some amount of weighting, are usually needed
to further match the two groups. Look for a research vendor that
weights the data in real-time so that you can view valid data at any
point during the study.
TRAIN MEDIA PLANNERS ON HOW TO USE SURVEY DATA
Unlike clickthrough data and other sources that are collected at the
impression or user level, interpreting survey-based data requires
expertise. Individual data points might represent mere anomalies, so
conclusions should be drawn based on larger samples and repeated
trends. If a particular creative unit on a specific site is performing
well, look to see whether other units of that size, or other units on
the same site are performing similarly. Also look at whom that unit
is reaching. Is it reaching the desired target audience, or is it being
delivered to many people who are not relevant to the brand?
Sample size is also critical. We suggest a minimum of 50 respondents
per cell before making any decisions. With a smaller sample size, the
results are very unstable and each incremental respondent can shift
the data quite drastically.
CONSIDER THE RELATIVE COST PER PLACEMENT
When evaluating the relative performance of each creative, site
or placement, consider the relative price paid for each. While
video units may often perform better than standard display units,
for example, the higher cost may not justify the incremental
branding impact. According to Joe Rose at MediaVest, “Cost-per-
increase is a better measure of success than branding metric
increases on their own, and is more in line with how we interpret
performance for direct response campaigns.”When designing a
branding effectiveness study, talk to your research partner about
incorporating prices to calculate cost-per-increase metrics.
Don’t be tempted
by cheap studies
that sacrifice the
quality of the data
that’s delivered
First published in the May 11, 2012 edition of
iMediaConnection, imediaconnection.com
Exposures
Control 1 2 3 4-9 10+
Why Optimization is Part Data and Part Instinct
Figure 1: Strength of message association by frequency of exposure
19.9% 21.1% 21.2% 21.9% 23.3% 26.1%
espite the strong growth of online advertising over
recent years, brand advertisers continue to punch well
below their weight when it comes to share of online
advertising spend. New Australian data from Dynamic
Logic, a Millward Brown company, has found that
while online advertising can help to build brands,
advertisers need to understand the balance between impact and over
exposure, particularly when it comes to the use of video.
The MarketNorms data, which was based on more than 80 Aussie
brand campaigns conducted over the last three years, has found
that a strong online brand campaign can be up to four times
more effective than an average brand campaign. With such a huge
discrepancy, it’s worth diving deeper to understand the three key
components that combine to make a strong online brand campaign.
It’s worth first noting that behavior based online metrics such as
impressions, clicks, and acquisitions, while important for direct
response, do not measure changes in attitudes and perceptions
towards advertised brands, so they should be of little concern for
brand advertisers.
The first element of a successful online brand campaign revolves
around the use of video and rich media to create impact. Just one
appearance of a video ad was found to perform better than any other
treatment when it comes to persuasion, building brand favourability
and increasing purchase intent. Interestingly, other high impact
placements such as OTPs and skins have shown equally positive
impacts in Australian online brand advertising.
While the research shows that video and high impact formats
support positive results, marketers need to walk a fine line. Both
Australian and global data shows that with over-exposure, high
impact formats can actually drive attitudes down for a brand,
particularly in regards to purchase intent. 
These results lead to the second element of success for an online
brand campaign – integrated planning using multiple formats. The
data shows that high impact placements used at low frequency but
complemented with standard banner placements, can extend the life
of a campaign.  The Australian data from an FMCG case study found
that purchase intent increased 4.3% when pre-roll was combined
with flash banners - a better result than either pre-roll or flash
banners alone.
The third element of success, strong creative, would seem quite
obvious to most marketers but is often overlooked. In the online
banner world you only have one to two seconds to grab a viewers’
attention and communicate the brand and message. All the frames
of an ad will rarely be viewed as a linear story. Data from our
MarketNorms database shows much stronger brand results for
creative that follows two simple rules:
Grab attention quickly and stand out on the page – think
“visual hook”and make use of white space and simplicity.
Cluttered or wordy banners often get lost on the page
Make every frame of the creative work to convey both the
brand and key message.
Before you move to dismiss these elements as self evident consider
this - nearly 40% of Australian campaigns measured did not feature
the brand on every frame and over half did not have the message
present across the creative.
With more dollars moving to digital advertising, the savvy marketers
are gathering online branding insights, not just behavioral
measures, to improve performance in both media and creative
campaign planning.
D
By Mark Henning
Director, Media & Digital Solutions, Australia, Millward Brown
OnlineBuildsBrands,
IfYouKnowHow
First published in the June 2012 edition of AdNews, www.adnews.com/
1
2
Challenge
Brand
China’s
Chinese brands must
work hard to improve
differentiation and
overseas recognition
if they are to take on
the multinationals,
BrandZTM
data shows.
TTen years ago, China joined the World Trade Organisation, and some
observers say one hundred years’ worth of societal and economic
transformation has occurred since. Millions of Chinese citizens
have evolved into consumers, and China’s contribution to the world
economy is now universally acknowledged.
Chinese brands have evolved too.The 2012 BrandZTM Top 50 Most
Valuable Chinese brands ranking was published in December 2011
by WPP and Millward Brown. Six of the Brands in the ranking,
collectively worth $50 billion, didn’t exist 10 years ago. In the 2011
global ranking, the BrandZTM Top 100, 12 of the top 100 brands are
from China.
But it is not all smooth sailing for Chinese brands.They not only
encounter competition from multinational brands on the domestic
front, but also face challenges in launching themselves overseas.
The gap between Chinese brands and foreign brands is narrowing.
Over the past decade, Chinese brands steadily increased in value,
and the proportion of earnings driven by brand and consumer
preference edged upward. Comparing 2011 and 2012 Top 50
rankings, 16 brands improved their brand contribution scores
(which indicate the extent to which the brand is responsible for
earnings), and none declined.
This shift demonstrates Chinese brand building achievements:
improvements in innovation, marketing, image building and the
ability to keep pace with rapidly changing consumer expectations
for improved products and services. An example is the online
portal Sina, which created the Sina Weibo Microblog in response to
evolving communication needs in the internet era.
Not simply a Twitter clone, Sina Weibo is adapting to the market,
and its success is reflected in its ranking. Mengniu, a dairy brand,
tackles food safety fears by emphasising its healthiness. Fulinmen, a
producer of edible oil and rice, conveys a brand personality evoking
a mother’s concern over the health of her family.
Sportswear brands such as Anta and 361° have achieved massive
brand salience and have a formidable head start on multinational
brands such as Nike and adidas in lower-tier cities.
By Jason Spencer, Managing Director, Shanghai, Millward Brown,
Sirius Wang, New Solution Director & AMAP Knowledge Manager, Millward Brown
and Adrian Gonzalez, COO, AMAP, Millward Brown
China’s Brand Challenge
Source: BrandZ™ database
FIGURE 1 Creating meaningful difference is still the biggest challenge for Chinese brands
china top 50 brands
having a clear image and being different
50%
70%GLOBAL top 100 brands
Among the Chinese Top 50, half the brands achieved a score in the
top tertile on one or both of those dimensions, while among the
Global Top 100, 70% achieved such scores. Chinese brands are still
seen as cheaper, while foreign brands are considered different in a
meaningful way.
Every brand must have a purpose. It must resolve a consumer need,
which may be functional, emotional, aspirational or, increasingly,
societal. And brands that do this in ways that are meaningfully
different from other brands have the opportunity to build significant
value.
Yunnan baiyao, a brand with a century-long heritage of traditional
medicine, is an example. Its brand value comes not just from
heritage, but also from the differentiation that heritage can confer.
Brands that can genuinely claim a long and unique history and
combine that history with meaningful differentiation can build
brand relationships with consumers that are strong enough to
sustain premium prices and withstand threats from imitators.
Pingan, China Merchant bank and Hainan airlines are also good
examples of differentiating from local competition by emphasizing
customer service.
Chinesebrandsarelesslikelytoachievehigh
scoresonhavingaclearimageandbeingdifferent
everybrandmusthave
apurpose.Itmust
resolveaconsumer
need,whichmaybe
functional,emotional,
aspirationalorsocietal
China’s Brand Challenge
Multinational brands have already felt the increasing success of
Chinese brands. A recent survey by The Economist, conducted among
328 senior executives at non-Chinese MNCs, found that only 22% of
respondents considered Chinese firms “not a threat”. That’s a third of
the percentage who were unconcerned about Chinese brands in 2004.
The BrandZTM database – the world’s largest brand equity database –
shows similar findings. Conducted in China since 1998, the BrandZTM
study has surveyed over 350,000 consumers on more than 1,000
brands, and over time the data shows a narrowing gap between
Chinese and foreign brands. This is especially apparent in the
second- and third- tier markets, where Chinese brands dominate
many categories.
SPOT THE DIFFERENCE
‘Meaningful difference’ is still the biggest weakness. Chinese
consumers are becoming more demanding and discerning in their
brand expectations. They are increasingly judging Chinese brands
against the large array of foreign brands now in China and are
expecting them to deliver more than just price and category entry
benefits.
However, even though BrandZTM shows that the gap between Chinese
and foreign brands is narrowing in China, a gap still exists. Chinese
brands are less likely to achieve high scores on having a clear image
and being different.
ahundredyearsworthof
societalandeconomic
transformationhas
occurredinadecade
China’s Brand Challenge
GOING GLOBAL
Success in their enormous domestic market has allowed many
Chinese brands to gain enough strength to enter international
markets. Nearly half of the brands in the 2012 Top 50 have overseas
revenue that accounts for more than 5% of their total revenue.
Lenovo, one of the most well-developed of China’s global brands,
makes about 50% of its income from overseas and is now the world’s
second-largest PC manufacturer.
However, Chinese brands still have very low awareness among
foreign consumers. Beginning in 2010, Millward Brown conducted
two large-scale studies to understand the performance of Chinese
brands in overseas markets. When people outside China were asked
to name Chinese brands, 83% could not name one. Clearly the main
problem facing Chinese brands abroad is familiarity. BrandZTM
results indicate that in any market, to become a leading brand, an
awareness level of at least 90% is necessary. Chinese brands still
have a long way to go in international markets.
Interestingly, developed and developing countries did not show
much difference in their familiarity of Chinese brands. Apart from
neighboring Malaysia and Australia, countries that are relatively
familiar with Chinese brands, developing and developed countries
have very limited knowledge of brands from China.
MATCHING THE MINDSET
However, our global study found differences between developing
countries and developed countries in some categories, such as
mobile communications, financial institutions and insurance.
Chinese brands in these categories are not accepted in developed
markets, but have some success in less-developed countries.
To be successful in overseas markets, Chinese brand managers need
to recognize that foreign consumers have a different mindset than
Chinese consumers. Chinese brand managers will need to develop
a global perspective and adjust their thinking and strategies if they
want to make foreign consumers feel comfortable with Chinese
brands.
One of the common misconceptions held by Chinese brand managers
is that the unique cultural elements that support their brands’
success in China can be rolled out globally. This is not often
practical. Chinese provenance may be acceptable in some categories,
such as apparel, where China’s heritage may be an advantage, but
in other categories, such as consumer electronics, China is still
perceived as an OEM (original equipment manufacturer).
First published in the March 2012 edition of
AdMap ©Admap www.warc.com/admap
China’s Brand Challenge
InChina,consumer
loyaltyisdrivenby
perceptionsofpopularity
Chinese brands also face another challenge: consumer-brand
relationships are driven by different factors in different countries.
In China, consumer loyalty comes from perceptions of popularity
and what the brand communicates to the world about the consumer.
Products and marketing campaigns are crafted to convey this.
However, in developed markets, consumer loyalty is derived from a
more personal relationship with a brand. Consumers care less about
status than about having their own personal needs met.
There are always exceptions, but Chinese brand managers only need
to look at the mistakes that multinational brands made in their early
days in China to understand that misunderstanding consumers can
hurt brand building.
If they are to succeed overseas, Chinese brands must develop
emotional connections with foreign consumers.Take a recent
campaign for Haier in Australia.
In a series of advertising campaigns for refrigerators, washing
machines and other products, Haier leveraged its brand image of
low price into an advantage, addressing the needs of more practical
customers.
It conveyed the idea that Haier allows consumers to have more
money to spend on other pleasures, since they don’t have to pay a
premium for Haier.
Chinese brands have made remarkable progress over the past 10
years. Chinese consumers appreciate the quality and innovation
now available to them, and those who manage multinational
brands in China and elsewhere have developed a healthy respect for
competitive Chinese brands.
But though their growth has been impressive, Chinese brands have
more work to do if they are to compete effectively in global markets.
Their work must start at home, building perceptions of meaningful
difference.They need to raise awareness among foreign consumers
and recognize the varying mindsets and attitudes towards brands
in other countries. A one-size-fits-all marketing plan will not be
effective.
However, the China Top 50 ranking showcases a number of Chinese
brands that are acquiring and honing the skills that will make them
successful overseas.
hen you can connect with friends all over the
world on Facebook and familiar brands greet you
in malls across the globe, it is tempting to think
that the time is right for truly global campaigns.
Ones that are originated and implemented in the
same way everywhere.
But the superficial evidence belies significant differences across
markets. So, unless your brand is one of the few that targets a
homogenous global audience, then you must plan from the ground
up and your measurement should reflect that local mindset. The
“think global, act local” mantra applies to all aspects of the planning
process, from identifying a common global platform on which to
build a campaign, to assessing its in-market effectiveness.
Today, many brands aspire to implement consistent, global
communications platforms that drive sales, boost brand strength
and have a real impact on the bottom line. Expecting the same
efficiencies that are realized in manufacturing, operations and
supply chain standardization companies hope to use the same
advertising strategy and executions around the world.
But all too often the results are disappointing. A campaign that had
great promise in one region fails to move the needle in others.
The problem is that, while many companies operate on a global
basis and have become accustomed, if not comfortable, with working
across countries and cultures, most consumers live very local lives.
They shop locally, drop their kids off at the local school and hang
out with friends at the local bar. More importantly, they watch local
television stations, read local newspapers, and, increasingly, surf
local digital content. It is not just a matter of which media channels
to use.
Media consumption differs by country even within channel. In
London, most people commute by bus or the Underground, so
smaller posters predominate. But in cities such as Los Angeles,
where commuters spend hours on clogged highways, bigger
billboards are the norm. And in São Paulo, outdoor advertising is
banned altogether, forcing marketers to seek alternatives to reach
their audience.
Media buying is forced to reflect the diversity of local markets.
Even if we wanted to reach a pan-European audience, the resulting
plan would be a patchwork of different
channels and properties. There are very
few media properties with even regional
reach.
And, in spite of many advertisers’ desire
to use the same executions across
countries, advertising effectiveness
reflects the same diversity. Our research
suggests that very few creative
executions have the ability to effectively
transcend differences in brand status and cultural boundaries, no
matter how much advertisers might wish otherwise.
If the role of planning is to bring the consumer into the process of
developing advertising (content and media), then it needs to start
with the local markets and work up, combining knowledge of the
target consumer within category insights, competitive reviews, and
cultural understanding to synthesize an effective campaign that will
work across countries and cultures.
By Nigel Hollis
Executive Vice President & Chief Global Analyst, Millward Brown
W
GlocalEvaluation:
MeasuringEffectiveness
Global campaign effectiveness needs to
be measured locally, from the ground up,
not the top down
Our research
suggests that
very few creative
executions
have the ability
to effectively
transcend cultural
boundaries
Measure from the beginning
If global planning starts from the ground up, so too must our
measurement of its effectiveness. And that means starting at the
beginning of the development process, not just when a campaign
runs. Unless the strategy and creative idea are relevant and resonate
with the intended audiences, the finished campaign is unlikely to
prove effective.
Increasingly, advertisers are seeking to identify a communications
platform that will inform all creative executions irrespective of
media channel or country. But identifying a big idea is a big task
even before you contemplate the complexity offered by different
countries and cultures. Dove’s Campaign for Real Beauty resonated
well in Anglo-centric cultures but failed in Asian cultures, where
concepts of beauty are still defined by outward appearance. A big
idea fails when it is incomprehensible viewed through a different
cultural lens. Research of all types – qual and quant, observational
and interactive – can all help inform whether or not an idea is likely
to work across cultures.
In order to develop a global
positioning for its Powerade
brand, Coca-Cola adopted a two-
stage approach. In the first stage,
respondents used an online forum
to discuss their sports participation
and give their reactions to different
Powerade positioning concepts and
the extent to which these resonated
with their own experience. Insights
from this research were then used to refine five concepts for the next
stage of quantitative research. Importantly, the first stage helped
shift the focus of the campaign away from “winning” to a globally
resonant theme of “performing at your best”.
Not only did the research inform the global decision, market-level
data provides the individual markets with information on how best
to implement the campaign in the way that best fits the local culture
and competitive context. Even when you have identified an idea that
resonates consistently around the world, the next challenge is to
execute against that idea.
Johnnie Walker may espouse a consistent global idea of progress,
but executions are developed appropriate to the local culture. If they
did not, the global campaign would not be as effective. A recent ad
developed for the Brazilian market shows the mountains of Rio de
Janeiro transforming themselves into a giant that strides across
the ocean. The slogan is: ‘The giant is no longer asleep. Brazil, keep
walking.’ The ad captures the pride Brazilians feel that their country
is playing a more powerful role in the world.
But not every brand has the luxury of developing local content and
even the largest global brands will seek to redeploy ads for markets
with a lower volume potential. In cases like these, the brand must
identify the execution most likely to transfer from one country and
decide whether or not adaptation is necessary. Measurement can
play a key role in informing decisions related to ad transference.
Two main hurdles must be overcome for an execution to be effective
across countries and cultures. The first is brand status. All too
often an execution works in one country because it fits the local
knowledge of the brand and its competitive standing. But transfer
that ad to another country and the context may undermine both
comprehension and effectiveness. Consistent measurement of brand
equity and positioning across countries helps ensure that copy is
deployed only in countries where the brand’s standing is likely to
encourage success.
The second hurdle is differences in culture. We have all heard the
stories about ads that fail because of inappropriate translation, but
far more frequent is failure due to incomprehension. For instance,
many ads seek to create enjoyment through the use of humour. But
what is funny in one country may be thought childish, banal or even
offensive in another. And often it is the subtle things that have the
most influence: values, customs or lifestyle. Unsuccessful transfer of
an ad from one country to another may be determined by something
as simple as an idiom that is understood in one country and not the
other. The only solution, other than originating ads locally, is to pre-
test ads to see whether they will be well-received by the intended
audience.
Importantly, the first
stage helped shift
the focus of the
campaign away
from “winning” to
a globally resonant
theme of “performing
at your best”
Glocal Evaluation: Measuring Effectiveness
Johnnie Walker: “The giant is no longer asleep” aims to capture the
pride Brazilians feel in their country’s more powerful global role
Measure in-market effectiveness
Turning now to assessing the in-market effectiveness of a global
campaign, we are once again steered back to the local level where
the necessary media and sales data are measured. For this reason,
brand and ad tracking, cross-media effectiveness research and
econometric modeling are all conducted on a local market basis.You
might expect social media listening to prove to be the exception to
this rule but, in reality, measuring a global picture proves messy, not
least because platforms and measurement services are regionally
fragmented. And, if you care enough about a market to advertise in
it, wouldn’t you like to know how the campaign is received by all
your target audience, not just the vocal minority?
The market-level approach allows us to understand the effectiveness
of media selection and copy within country, but what about the
global picture? The same campaign may stimulate a very different
response across markets depending on consumer attitudes to ads,
media clutter, category growth rates and brand sales elasticity.
To look at a global picture, we must first compare performance
with country databases and then look at normalized results to
draw conclusions about campaign effectiveness. Unfortunately, this
approach may seem unnecessarily complex to the end-user but it is
absolutely critical if sensible comparisons are to be made between
countries. For instance, on average, Scandinavians tend to be more
negative in their response to advertising than Poles or Mexicans,
while Indians and Indonesians tend to be far more positive. This, in
part, reflects cultural differences, but also attitudes to advertising
in general. This type of difference is not just apparent in attitudinal
data. The sales elasticity to advertising will differ within a product
category depending on the relative wealth of the population and the
economic growth rate.
This said, consistent patterns do emerge from the data, particularly
with regard to cross-media effectiveness. Time and again - in
many different countries - we see a key role of TV in “priming”
mass audiences. This significantly increases response to further
communications exposure in another medium. So, in that sense, we
have a global “rule”. However, the clutter levels by country differ
greatly, consequently changing the planned frequency needed to “cut
through” and the volume of GRPs one can put behind an ad before
reaching diminishing returns. This is not just about the size of the
media budget and media owner deals; large sums of production
money are bet, very early, on the number of ads to produce, their
length, their rotation, all based on anticipating frequency and
diminishing returns once deployed on TV.
In a growing number of countries, there is increasing value in
planning audiovisual ad exposure across TV and other media,
such as online, mobile, tablet and even digital posters in Tier One
cities in China. We see that digital AV adds frequency and some
additional reach among lighter TV viewers. However, the returns
and consequent investment levels must take into account quite
different local audience penetration and a variety of online media
environments, sometimes less cluttered than TV, sometimes much
more. Such things change rapidly and a local eye is needed to ensure
returns are maximized.
Conclusion
In these days of doing more with less, the message that effective
measurement needs to be conducted from the ground up is unlikely
to prove popular, but neither does it make it untrue. If you really
want to understand how people respond to your campaign ideas,
executions and in-market deployment, you have to do so at the local
market level.
The world is still an incredibly
diverse and complex place, and
if you ignore that granularity, it
simply opens up opportunities for
competitors to take advantage of
your blind spots. Global brands
are increasingly being challenged
in countries like China, India and
Brazil by nimbler and more culturally
appropriate local brands. Their
proximity to their customer gives
them an important advantage, not least an innate understanding of
their culture and the local media and shopping environment.
If marketing communication is the equivalent of a brand’s
conversation with the world, global brands must be well-informed
and tapped into local culture if they are to remain successful. That
means measuring effectiveness from beginning to end, and from the
ground up.
Global brands are
increasingly being
challenged in
countries like China,
India and Brazil
by more culturally
appropriate local
brands
There is increasing value in planning audiovisual
ad exposure across TV and other media, such as
online, mobile, tablet and even digital posters
Glocal Evaluation: Measuring Effectiveness
First published in the June 2012 edition of AdNews, www.adnews.com/
ynamic Logic and Millward Brown have long known
how to measure attitudes and habits as a result of
any marketing activity. We do it primarily through
survey-based research. In this voice, the research is
guided, quantifiable, structured and replicable. With
the proliferation of social media data running through
platforms like Facebook and Twitter, we can now listen to another
voice of that same consumer, which is observational, unsolicited,
un-moderated, and completely fluid. This social voice reveals new
information and thus new avenues of insight and analysis.
We’ve also long known that the attitudes expressed in the survey
have other cousins – opinions and actions that potentially
don’t surface in surveys. The future of brand measurement is
an exploration into how new social platforms and technology
can garner meaningful attitudinal and behavioral insights that
complement and supplement our established survey based research
methodologies. It’s certainly possible that one day (perhaps not
long from now) this implicit data-driven measurement could even
supersede traditional survey methodologies.
Where does the data come from, and what does it mean?
The social data universe is hard to size – no one knows how big it is,
how much there is, or in some sense, even what the definition is of
social. But even as that universe expands, it’s also becoming more
centralized in some significant ways.
In the past seven years, Facebook
has won the battle of supremacy: it
definitively owns our social graph. With
over 750 million users and growing,
our real-life social networks, personal
and professional, have been mapped.
Its near-universal adoption in most
countries means it’s easier to innovate
without worrying about replicating
those same networks from scratch with
every new application or utility. Nearly
every platform, whether it’s Twitter, Foursquare, or this week’s hot
new startup now takes advantage of Facebook Connect, to bolster
user experience and adoption, and to create more value for the
service and its users.
Deep integration means much more than just a rich user experience:
it also means users are constantly generating a stream of data
which can give us more thorough insight into habits and attitudes
than we’ve ever seen before. Major brands and services have caught
on – everyone from Groupon to Ticketmaster to Starwood Hotels
recognizes the power of these rich data streams, and they are
looking to harness them in a meaningful way that can build their
brands and grow their businesses. This is the age of Big Data, and
brands are eager to capitalize on it.
By Anne Czernek
Senior Research Analyst, Emerging Media Lab,
Dynamic Logic, Millward Brown’s Digital Practice
@annemosity
Deep integration
means much more
than just a rich
user experience: it
also means users
are constantly
generating a
stream of data
It is understandable that brands want to leverage
the power of social media to connect with their
consumers. But what is the best way to do this? As it
turns out, social media does truly need to be EARNED
and the strongest brands must put effort into making
social media work for them.
Marrying social metrics to brand metrics
With the Facebook identity so thoroughly enmeshed in the
development of new applications and platforms, it facilitates
aggregation of this data while Twitter’s functionality as an
information-sharing platform means it also captures a wide variety
of data, as new platforms push select data through to Twitter. This
unified social graph will give rise to new brand value generation
across many categories and many platforms. Mining those platforms
for explicit, implicit, and analytic consumer data will become a core
measurement approach for brands.
How can you measure the impact of social media through
social media?
If the bounds of social media and the data it generates are seemingly
limitless, it becomes necessary for us as researchers to be able to
identify key points of significance in that data that can serve as
surrogates for the larger set. From there, we can extrapolate more
broadly to measure the impact of that media on a brand.
To understand how we can frame social research alongside
attitudinal research, it’s helpful to think of the traditional purchase
funnel. We propose, through early validation work, that just as
there’s a purchase funnel that helps explain consumer attitudes
and decisions, there also exists what we call a “Passion Funnel” – a
parallel social research construct that helps marketers understand
brand social performance in the same
framework as they understand overall
marketing performance.
This research construct makes it possible
to measure brand activity more broadly
in social media. Through our VerveIndex
work using Twitter data we’ve seen
that using integrated platform data can
yield powerful results, including insight
into both campaign effectiveness and
brand performance. So many other data
sources flow into Twitter – from original
Tweets to blogs to location data to photo and video sharing – that
by decomposing the stream, we’re able to track brands across a
multitude of platforms from one very rich data source. As broad as
social media may be, we can isolate, identify, and amplify which
elements of which platforms serve as signals for marketing success.
When we identify the significance of each of these elements and
assign appropriate weights, we’re able to use this data as a proxy
for understanding brand performance not only in the wider social
universe but also more holistically across all marketing activity. As
adoption of social media becomes more widespread in the general
population, marketers are also simultaneously increasing its role
in their broader media mix. Social media functions as a barometer
of consumer opinion; as consumers react to the mix of messages
in the marketplace, whether they’re originating from TV, print,
outdoor, online, or social media itself, we’re able to capture that
broader reaction by listening to the social voice. The ebb and flow of
marketing messages is reflected (and when done well, amplified) in
social media, making it a robust data source for catching the pulse
of brand performance.
Yet to make sense of the breadth and depth of the big data social
media affords us, it is ultimately critical to tie brand performance
and marketing activity in social media back to established,
standardized metrics that can function across the broader reach of
media, whether that’s paid, earned or owned. Decades of research
have taught us much about the consumer path to purchase, and
those findings and research constructs still serve as the backbone of
our industry and our understanding of it.
Social media measurement is not a new research paradigm; it
is another data source to help us understand and support the
paradigm we use consistently across all other market research. Just
as social media should be a component of a brand’s overall strategy
and media mix, so should social media measurement be held to the
same standardization as the rest of a brand’s measurement mix. As
new platforms launch, grow and evolve, so will their data generation;
for each of these data sets, we must always seek to identify a
common understanding of them through a stable analytical lens.
The ebb and flow of
marketing messages
is reflected (and
when done well,
amplified) in social
media, making
it a robust data
source for catching
to pulse of brand
performance
PURCHASE FUNNEL PASSION FUNNEL
Awareness Buzz Total brand mentions and interactions
A measure of conversation intensity
The ratio of positive to negative buzz
Words most often used in association with brandMessage BrandVox
Favorability Sentiment
Intent Passion
First published in Kantar’s Social in Context report, Part 3, February 2012
Turning Big Data into Brand Data
The future
of #social
for brands
View conversation
@duncan_southgate
rand are increasingly aware
that fan pages can attract large
audiences and build brands.
More and more people are
signing up to fan pages and
social media feeds around the
world. A typical Facebook fan
page has almost tripled in size in
the past year (the average increase across all Facebook
fan pages was 193% according to Socialbakers, a social
media measurement company).
The importance of measurement
Social media is now important to many brands, but
measurement practices have not yet caught up. Still
not many social media marketers fully understand
the return on their investment. As well as behavioural
measurement to understand audience volumes and
engagement, brands should look to add a layer of
attitudinal understanding; firstly to understand
whether fan pages are achieving brand objectives, and
secondly to gain insights into how the pages can be
improved. Larger scale social platforms and campaigns
should also be included in multi-media measurement
studies. One recent Millward Brown CrossMedia study
for a European FMCG brand showed that Facebook
and TV synergy was very powerful, especially for the
younger core target. Only when social is considered in
this wider context will brands fully understand social
media’s role in the media mix.
Summary
There are many exciting future possibilities in social
for brands which understand their audience, identify
what works among them socially, and deliver against
that consistently with ongoing creativity.
For more of Millward Brown’s social media learning,
see the Knowledge Point “How should your brand
capitalise on social media?”
B
Fivesuggestionsfor
keepingfanpagesfresh
Fan pages: impactful, and growing in scale
+193%
By Duncan Southgate
Global Brand Director, Digital, Millward Brown
Integrate and enhance offline conten - Beyond the digital space,
brands also need to integrate their social activity strongly with
other media and promotional activity. We have already seen some
ambitious examples such as Smirnoff’s “Nightlife Exchange Project”,
where a major TV and online campaign drove millions of global Smirnoff fans to
interact via Facebook. Even in less extreme situations, social media needs to be
aware of and reflect messaging from other channels to give those messages a chance
to be amplified/reiterated. Just posting the latest TV or print ad is an opportunity
lost. Brands need to identify a social element in the ads and invite comment and
discussion. Social can add a new layer, provide an additional back story about the
making of, or provide an opportunity to flesh out a key communication point with
further information.
#5
Aim for seamless social - Brands need to deliver a coherent story
across multiple digital platforms.This already means juggling content
on Facebook, Twitter and a brand website, and perhaps on YouTube
too. In the future, brands may also want to extend their presence into
Foursquare, Google+ and other networks. Brands need to make key decisions about
whether to devise unique content for Facebook and other social sites, how much
content to leave on their own website, how to manage Facebook fans alongside
website and email marketing databases, and whether Twitter has a unique role or
is simply a traffic driver for the Facebook page or the brand website. Some brands
have chosen to integrate their Twitter feed within their Facebook page which can
encourage some cross-fertilization. Many permutations are acceptable, but a clear
strategy is essential. Forums on websites have arguably become much less relevant,
since these conversations are more natural in a Facebook or Twitter environment.
While this means giving up some control, it increases the chances of viral spread.
Viral video campaigns and social media are natural bedfellows. Old Spice and Dos
Equis have shown how social media can enhance and build on already successful
viral video campaigns.
#4
Keeponreachingout-Brandsneedtokeepreachingbeyondcorefans
to the friends of those fans. Not only does this increase the potential
target audience, but this new blood will also bring new enthusiasm
to the page. Facebook makes this possible via ad units which can
be targeted at friends of fans. This viral spread can also potentially be achieved by
crafting posts or creating content elements that lend themselves to being shared.
The Facebook and Twitter “share” and “retweet” mechanisms are simple, but fans/
followers are only likely to do this occasionally, when the post/offer is exceptional, or
when it will reflect well on them if they break this news to their friends.
#3
Have fun with tech - Apps aren’t essential to a successful fan page,
buttheycancertainlyhelp.SocialmediaenablerssuchasBuddyMedia
offer many precanned apps which can be easily tailored. As other new
features and technologies become available, brands should evaluate
theirappropriateness.Forsomebrands,thismightmeanaviralappwhichencourages
photo sharing. For others this might mean a device which takes advantage of geo-
location capabilities to map fan base activities. Many social media users enjoy the
latest new thing, so aim to demonstrate that your brand is at the cutting edge. Just
one word of caution: don’t make your app so complex that no one can figure out
how to use it!  Think innovative AND intuitive.
#2
Encourage creativity - Think of page managers as copy writers, not
email marketers. Whilst maintaining a consistent fan page “voice” is
important, encourage page owners to experiment frequently with
different post approaches. What works this month may not work
so well in the future, so keep probing new areas to see what content sparks most
engagement. Newsfeed posts are the most viewed fan page content, so it is essential
they maintaininterest.Individualpostssomehowneedtoaddup to a cohesive whole
and tell a story over time. Regular features such as a weekly or monthly competition
can help mark the passing of time.
#1
Separate learning from BrandZ has made it clear that
fan pages are not right for all types of brands, but
can be really successful when run well. The relevance
of fan pages varies by country, category and brand
type. Brands are obviously more likely to build large
fan bases in countries where there are large numbers
of social media users. Beyond that we have seen that
social media users in some countries such as Korea,
Brazil and China are particularly likely to follow
brands in social media. Some categories such as
IT software/ hardware, diapers, telecomms, mobile
phones and cars seem to attract more fans. And
brands which are particularly creative and desirable
are also more likely to build large fan bases.
Once a fan base has been established, there can be
massive variation in how successful those pages are at
deepening brand loyalty among fans. “Value of a fan”
research conducted by Millward Brown and Dynamic
Logic in partnership with the World Federation of
Advertisers has shown that innovation and variety are
key to fan page success. Brands will therefore need
to keep content fresh and provide ongoing reasons to
engage if brand effectiveness is not to fall over time. So
how can they manage this?
First published in the 2012 edition ofWPP’s BrandZTop 100 report
ver a century ago, the renowned merchandising
and advertising mastermind, John Wanamaker,
uttered that iconic phrase. Decades before radio
and television, Mr. Wanamaker opined about
the fundamental weakness with advertising –
the difficulty of reaching potential consumers
through traditional advertising. He didn’t have the tools or the
information to make informed decisions about what advertising
works best.
When you think about how electricity would literally shock his
world, consider how digital is affecting yours; how consumers are
defining their media through new digital devices on a personal
level. Digital technology (set top boxes, smart phones, tablets, PCs)
links content to the consumer faster than ever before. Technology is
redefining the new reality in television, and digital technologies are
empowering consumers with the greatest choice of content, in the
highest quality, delivered when and where it is most convenient -
welcome to the consumer age of television.
The challenge of evaluating advertising effectiveness today has
intensified as consumers are more actively multi-tasking on digital
devices, exponentially increasing the likelihood of potential lost
audiences and ad avoidance. But 100 years later, we have an
advantage over Mr. Wanamaker – these digital devices can “talk”.
They can collect usage data and send it back. To give some context,
we now collect tuning on over 2.3 million commercials – so we can
see in last year’s Super Bowl if anyone actually stayed with those
expensive ads.
As more digital media advancements enable efficient targeting
capabilities, advertisers can send more relevant messages to the
right consumer. Since digital devices communicate with a high
fidelity of return path data (RPD), we have an unprecedented
opportunity to “mine & combine” this usage data so marketers can
understand the new digital media landscape and improve their
advertising effectiveness.
Mr. Wanamaker was making the case to demand greater
accountability for advertising. Kantar Media and Millward Brown
have combined two key databases to understand the acceptance of
an ad and the subsequent audience behavior when the ad appears
to help minimize ad avoidance or audience tuneaway. This enabled
us to provide an additional measurement system with enhanced
accountability and insight for advertisers.
O
By Jeff Boehme, Chief Research Officer, Kantar Media Audiences
Mitzi Lorentzen, Vice President, Client Solutions, Millward Brown
“Half the MONEY I SPEND
ON ADVERTISING IS WASTED;
THE TROUBLE IS I DON’T KNOW
WHICH HALF”
-JohnWanamaker
TurnOn,Tune
In,Watch
Out:How
AdvertisersCan
MinimizeAd
Avoidance
Commercial Audiences Are Not Traditionally Measured
Despite the digital transition of media, traditional TV measurement
in the U.S. has not progressed to keep pace. Ironically, the TV ratings
system doesn’t report the key metric of audience to the commercials.
Program ratings don’t tell you how people watch commercials.
Kantar Media’s state-of-the-art audience data, however, provides
second-by-second return path data (RPD), which is digital TV usage
derived from set top boxes. These second-by-second tuning levels
enable us to passively collect and measure audiences to all available
channels and programs, as well as commercials so we know when
and where audiences stay with or leave the ad. More specifically,
tuneaway provides a measure of lost audiences by analyzing the
tuning present at the start of a commercial and calculates the
proportion tuning away from that commercial.
Despite digital video recorder
(DVR) penetration over 40%, the
majority of TV tuning is still live
with an average of 3% commercial
tuneaway. However, this ranges
and we have seen campaigns where
audience tuneaway can exceed
20%. For time-shifted content,
commercial tuneaway can be
much higher, sometimes exceeding
30%. As a practical example of
this impact, sponsors of the Super Bowl would lose approximately
$80,000 of their investment dollars if a 30-second ad experiences
a 3% audience tuneaway. Therefore, understanding this behavior is
critical to measuring the real value of the advertising investment.
Our two companies, Kantar Media and Millward Brown, realized
that we could further improve our clients’ advertising return on
investment by helping them minimize audience tuneaway. By
aligning Millward Brown’s robust database of Link™ copy testing
and Kantar Media’s DIRECTView actual audience behavior, we can
now isolate the various factors which drive tuneaway from ads.
Millward Brown’s Link™ identifies the potential effectiveness of an
ad and is validated to sales. The Link™ database contains thousands
of ads across a range of categories and brands. From a Kantar Media
perspective, tuning behavior measures the “environment” of how an
ad is received via DIRECTView. This is a managed RPD panel of over
100,000 digital households.
To prove our concept would work in the real world, we allied with
the Advertising Research Foundation (ARF) to define a study where
we focused on a given month of Kantar Media’s second-by-second TV
tuning for 184 ads that had been pre-tested with Millward Brown’s
Link™ dataset across a range of categories. Our goal was to address
two questions:
•	 What creative metrics from a pre-test can predict audience
tuneaway?
•	 How media placement and measurable influences can impact
the results?
Aligning the results from these databases enables us to provide
guidance on how to optimize both the creative and media placement
to minimize commercial tuneaway.
Understanding The Creative
Understanding which creative elements relate to tuneaway before
a commercial runs will provide an early warning signal to help
advertisers minimize potential audience loss and provide insight
that is actionable before the commercial campaign begins.
It is important to note that tuneaway provides an understanding of
ad avoidance, but does not indicate whether an ad will necessarily
be successful. Millward Brown’s research on what constitutes strong
creative illustrates the importance of engaging viewers in a branded
fashion (branded engagement) so an ad gets noticed and recalled in
association with the brand. If an ad engages viewers, the advertiser
has a greater opportunity to create associations about the brand
that could generate a response (persuasion). Combined, these two
measures help us understand the creative potential of a commercial
in market.
From our analysis, we know that some ads are more likely to engage
with consumers in a negative way and be fast forwarded or “tuned
away” from, and these contain certain creative characteristics.
These creative aspects can be grouped together into three clear
dimensions.
The element that is most important in terms of tuneaway from a
creative standpoint is personal relevance - if consumers have no
interest in the category or brand, they are more likely to tune away.
Secondly, viewers need to have a negative emotional reaction to a
commercial in order to actively change the channel and tune away.
They find the commercial “unpleasant”, dislike it, or feel inadequate
or annoyed when watching it. The key finding being, consumers have
to engage with the commercial in the first place, in order to take
action against it. Finally, if the message contained in the ad lacks
relevance or credibility for consumers then they are also more
likely to tune away.
These findings corroborate with what we know about how brains
process information1. The brain prioritizes information of relevance
to current or future goals and emotion is a big cue to the brain of
something that is relevant and important.
Therefore, an advertising idea has to resonate with consumers and
tap into issues of importance to them. The challenge is to present the
brand in a way that is relevant to the consumer’s current mindset or
broader values and goals to help minimize potential tuneaway.
1Cognitive Neuroscience, Marketing and Research: Separating Fact from Fiction, Graham Page and Jane
Raymond, ESOMAR Congress 2006
For time-shifted content,
commercial turnaway
can be much higher.
Therefore, understanding
this behavior is critical
to measuring the real
value of the advertising
investment
Turn On, Tune In, Watch Out
Understanding Media Placement
But how important is the media in terms of the whether viewers
watch or “tune into” watching the commercial? As we have learned,
it is critical. The effectiveness of an ad being ‘tuned into’ depends
largely on where and how that commercial is received, or its media
“environment”. Media placement can be measured on a range
of factors, or media influences, relating to the buying strategy
employed. For the purpose of our study, we used our second by
second audience data to identify the most important reasons why
people tune away from commercials. These include: program,
network/channel, daypart, commercial length, the pod within the
program, position in pod and product category.
We were then able to see some very interesting trends. For example,
ads which are shown first in a commercial pod (the grouping of
commercials in a program) tend to have higher levels of tuneaway.
The specific program also affects the ad’s performance as does the
specific product category being advertised. For example, categories
such as movies/entertainment, experience lower levels whereas
automotive experiences higher levels of channel switching. This
is logical, as the vast majority of Americans will not buy a car in
the next year, so that brand may not be as relevant at the time of
viewing.
We have used these data to develop a new performance metric – the
Audience Tuneaway Index (ATI). All of the media influences listed
above impact on the performance of campaigns, and so by using
broad commercial benchmarks we can control for each influence
and calculate how campaigns would perform in a typical TV
environment.
The Real Value – Combining Creative and Media Placement
Measurement
The real power lies in combining media and creative aspects to
understand how they interact. We built a structural equation model
across the combined datasets to isolate the effects of creative and
media placement on audience behavior tuneaway. While we know
creative plays a critical role, the model illustrated an amazing
observation- media plays an even stronger role, accounting for 75%
of tuneaway.
From a creative standpoint viewers
generally have to really dislike
an ad or have it not be relevant
to actively change the channel.
From a media standpoint, there are
multiple factors which will impact
even the most powerful creative.
Many consumers will intuitively
change the channel as soon as the
commercial break starts, and certain programming is better at
retaining audiences. For example news or sports, may impact the
way in which the commercials within it are consumed, compared
to a genre such as drama which usually requires continuous
engagement to follow a storyline through a commercial pod.
However, the creative remains critical. Audience tuneaway does not
inform us if the commercial was remembered in conjunction with
the brand, or whether it drove sales. Audience tuneaway analyses,
complemented with other commercial performance measures
provide an additional diagnostic to understand the ad’s potential to
retain or lose viewers.
Activating the Model to Help Advertisers
While our study enabled us to understand the overall trends and
causes of audience tuneaway, we are also able to analyze the
performance of individual campaigns and pinpoint areas of strength
and weakness. We found examples of campaigns which scored well
creatively but performed poorly in terms of their tuneaway, and
others which were weaker creatively but managed to minimize ad
avoidance. Examples such as these enable us to understand the
relationship between creative and media and to identify specific
elements that contributed to this performance and areas for
improvement.
In one specific case, we found the advertiser had an opportunity
to improve both the creative and media strategies to reduce ad
avoidance. From a creative standpoint, they needed to convey a
more credible message and make changes to reduce the negative
emotional reaction. Their media strategy could be enhanced by
better rotating spots in different pod positions as well as modifying
their channel and pod composition.
Overall Conclusions
Consumers will continue to evolve with digital media, actively
selecting relevant video content and consuming it on their
own terms. To understand audiences in this digital evolution,
programmers and advertisers need additional measurement
practices to provide enhanced accountability and insight.
Commercial tuneaway does represent a significant loss in both
audience and media investment, but there are metrics available
that can help analyze campaigns from both a creative and a media
placement standpoint, to manage and reduce ad avoidance.
Can’t you just see Mr. Wanamaker smiling?
First published in the July 2011 edition of AdMap.
Reproduced from AdMap with permission.
© CopyrightWarc. www.war.com/admap
Turn On, Tune In, Watch Out
Many consumers will
intuitively change the
channel as soon as
the commercial break
starts, and certain
programming is better at
retaining audiences
SocialMediaBestPractices
By Chris Maier, Director of Digital and Media Solutions
for Greater China, Millward Brown
& Nicki Cunliffe, Associate Director, Millward Brown Optimor
The study of China’s Top Social Media Brands reveals several best
practices that can inform the marketing of brands determined to
make an impact in China. These best practices include:
1. Branding and Messaging
Make social media messaging consistent with the brand’s ideal
An effectively planned and executed social media strategy can have
tremendous impact on raising awareness and conveying a message,
when it is in line with the brand’s core idea and values. In 2010,
Haier aligned with the World Wildlife Fund’s Earth Hour initiative
and urged employees and customers to participate.
Haier launched a promotional website where visitors learned about
the importance of power conservation. Haier spread awareness
through integrated sharing links to social media websites, calling
for the involvement of consumers around the world to care for the
earth. The company also engaged consumers with activities on
popular online forums and blogging platforms.
Haier’s Earth Hour website received over 1.5 million visitors after
only 10 days online, indicating the success of social media as a
platform for Haier to spread its message of promoting a smarter
life for a better planet. Importantly, the Earth Hour initiative is
very much in line with Haier’s renewed brand positioning as a
developer of sustainable white goods solutions and producer of
environmentally responsible and energy efficient appliances.
2. Customer Service
Leverage the microblog platform to engage with consumers in real time
The increase in popularity of the microblog has spurred most brands
to launch an official microblog page. Brands most sophisticated in
social media use these platforms to allow customers to voice their
problems as soon as they arise. Then the brand responds with equal
speed.
In January 2010, around 600 cabin crew associates from China
Eastern Airlines ‘Lingyan’ group joined the microblog Sina Weibo.
They wanted to better communicate with their customers, build
customer loyalty and deal with any potential issues or crises that
might arise. Just a month later, in February 2010, the famous
Chinese actor Xu Zhen tweeted to his Sina Weibo that he misplaced
his iPad on a flight and mobilized his followers to help him find it.
In just over an hour, a cabin crew member from Xu’s flight identified
herself and informed him that she had picked up his iPad and
arranged for it to be returned to him. China Eastern Airlines’
participation in social media has enabled the company to engage
with customers on a personal level and provide responsive service.
3. Consumer Insight
Listen to consumers and co-create desired experiences
Social media provides an ideal opportunity for brands to listen more
and develop a better understanding of what consumers want. In
June 2010, Air China launched a social media campaign. “My flight,
I decide” via Sina Weibo, and recruited netizens to create their ideal
flight, offering complete customization of route, in-flight service and
food and beverage.
Air China used web portals and microblogs to spread the word,
attracting over 5,000 netizens to participate and adding the term
“weihang ban” (custom-flight) to the Chinese online lexicon. Most
importantly, Air China was able to gather important intelligence
to enable the company to design the ideal flying experience from a
customer perspective.
4. Social, Local and Mobile (SOLOMO)
Integrate social media with mobile marketing and location-based services
With the ever-increasing number of smart phone users getting
hooked on social mobile apps like location based services (LBS),
microblogs, social network sites and video sharing sites, mobile has
become an increasingly important social media marketing platform.
China Mobile partnered with Tudou, one of China’s leading video
sharing websites specifically associated with netizen generated
content, to create a campaign called “CMCC WIFI Hotspot Check-
in.”The campaign encouraged China Mobile users to discover
and turn on WIFI hotspots via LBS check-in. The checkin activity
automatically synced to a campaign site Tudou set up with a map of
Shanghai detailing every time a netizen activated a WIFI hotspot.
To encourage the on-going upload of user generated content,
netizens were also able to upload photos to the campaign site
using location based SNS, Bedo. The campaign attracted more than
90,000 check-ins from mobile netizens. The success of China Mobile
and Tudou’s joint mobile marketing initiative demonstrates the
innovative integration of social, local, and mobile (SOLOMO), which
has proven to be very well received by young netizens in big cities.
5. Viral Video
Produce online video to give people something to talk about
By the middle of 2011, the number of online video users reached
301 million in China, according to a July 2011 survey by the China
Internet Network Information Center (CNNIC). Staterun websites,
like CNTV, and private video sites, like Youku, Ku6 and Tudou, have
become a big part of netizens’ lives. As a result, many brands are
using viral videos to create buzz and promote sales.
In 2011, Lenovo launched its “Boot or Bust” viral video, a product
demo of the new Lenovo ThinkPad laptop equipped with a feature
called RapidBoot. The demonstration was designed to dramatize
how RapidBoot gives Lenovo computers the ability to boot up in just
10 seconds. In the video, a ThinkPad is tossed from a plane at 12,500
feet and powered on in midair by a skydiver. The falling computer
then boots up quickly enough to trigger a parachute and sail to a
safe landing.
The video created a lot of buzz, and the integration with social
websites made the viral spread of the video content faster and wide
reaching. There has been a lot of discussion about what makes
something go “viral.” Millward Brown and CIC findings indicate that
creative, humorous, touching and exaggerated
subjects are more likely to be shared.
6. Hot Buzz
Know and participate in hot topics to drive engagement
Brands should stay abreast of hot topics because the most popular
stories and breaking news generate the most online buzz. The
appearance of Chinese dairy company Yili in the Transformers 3
movie took many people by surprise, with a character in the movie
asking, “May I finish my Shuhua milk?”Yili capitalized on the fact
that Transformers 3 was the most buzzed about hot topic online and
supplemented the product placement with an extensive social media
campaign.
The official microblog fan page was launched before the movie
opened, and a series of marketing activities were executed. These
activities included encouraging netizens to enter competitions to
win tickets to the premiere and Yili branded movie souvenirs. They
also involved completing personal movie reviews after the movie
was released.
The discussion about Yili Shuhua milk associated with Transformers
3 created a lot of buzz online, generating over 170,000 tweets
during July 2011, on Sina Weibo alone. Leveraging the enthusiasm
of consumers,Yili enhanced the effect of the product placement
and attracted abundant re-tweets by bonding the brand with very
relevant and topical discussion content.
First published in the 2012 edition ofWPP’s BrandZTop 50 report
recent report concluded that there is a very strong
link between creativity and effectiveness: ‘The Link
Between Creativity and Effectiveness’ (IPA, 2011, Peter
Field). Field’s analysis sheds an interesting light on
an old debate about creativity and sales effectiveness.
We’ve long felt there was a connection: when we look
at the best ads we have ever tested, it is clear they all have the power
to involve and be enjoyed, and it is clear even subjectively that they
all harness creativity, albeit in different ways, to great effect.
To explore this issue further, we’ve recently conducted our own
analysis. We undertook a painstaking trawl through the winners
of IPA Effectiveness Awards from 1996 to 2010, Effies from 2007 to
2010, and Cannes Lions from 2002 to 2011 to identify campaigns for
which we had conducted Link, our global pretest. The IPA and Effie
awards are given for effectiveness, while Cannes Lions are given for
creativity.
In total, we identified 251 ads covering 92 brands. For brands for
which we had researched more than one ad, we used the average
scores across all the ads. We indexed the Link results to enable
legitimate comparisons of ads from different countries (because the
Cannes Lions cover ads from around the world, and average scores
vary across countries). An index of 105 or more puts the ads into the
top third tested; an index of 114 or more puts the ads into the top
10%.
Figure 1 shows the results on a selection of key Link measures
for IPA Effectiveness winners. Overall, these results include 153
ads for 46 brands; the “base” column shows the number of brands
represented. (Because Link has evolved over the years, we don’t have
all the measures for all the ads.)
Compared to our overall average, the television commercials for the
winning brands tend to be more involving and enjoyable (an index of
105 puts the ads into the top third we’ve tested on these measures),
and different to other advertising. They also have slightly better
branding. They are less likely to be seen as conveying new, relevant,
or unique information designed to make people feel differently about
the brand. The persuasion scores of these award-winning campaigns
are on a par with norm.
Some may be surprised that advertising can work without
persuading people. We’ll explore this further later in the paper.
By Dominic Twose, Global Head of Knowledge Management at Millward Brown
and Polly Wyn Jones, Senior Database Analysis Executive, Millward Brown
A
Figure 1: IPA Effectiveness Winners
INDICES MEDIAN NUMBER OF
BRANDS
Different to other ads 106 10
Enjoyment 105 46
Involvement 105 36
Believable 102 19
Branding 102 43
Appealing 99 36
CPG Persuasion Mean Score Index 99 25
Understanding 98 46
New Information 97 35
Relevance 95 36
Think Differently 95 15
Uniqueness 95 24
Brand Different 93 19
CreativeEffectiveness
A study of IPA Effectiveness, Effie and Cannes
Lions Awards winners reveals that ads don’t
need to persuade to be effective but they do
usually engage emotionally.
Cannes LionS
Turning to the Cannes Lions (covering 43 ads for 30 brands; some
ads were tested in multiple countries), they too perform well above
average on enjoyment and involvement (Figure 3), but they are
also far more likely to be different to other ads (an index of 115
puts them in the top 10% of ads we test on this measure). On the
other hand, branding scores are on a par with the norm while the
persuasion scores are below the norm.
So it seems that both creative and effective ads benefit from
enjoyment and involvement.
The finding that shows that persuasion is not necessary for effective
advertising may seem surprising; both Millward Brown and some of
our competitors have published evidence that such advertising can
produce sales effects (‘An Analysis of How Effectively Advertising
research Can Predict sales’, Twose and Smith, 2007). However, this is
understandable in light of the evidence that a persuasive ad tends to
affect sales in the short term, while effectiveness awards tend to be
given for long-term brand-building campaigns.
The Millward Brown measure of persuasion, which asks respondents
whether the ad makes them more likely to buy the brand, tends to
closely replicate the results of pre-post persuasion shift approaches
(‘Persuasion shift Testing: Putting the genie Back in the Bottle’ Farr,
1993). We have also observed that ads which performed well on
persuasion also tended to convey relevant, credible, differentiating
news (‘What Makes an Ad Persuasive?’).
A new, relevant, and credible claim will
always have a dramatic sales effect. But
such advertising will wear out quickly:
persuasion is a “one-off” event. We either
get the consumer to make a mental note
to try the brand again, or we do not.
An ad that did not get this response at
the first three showings is unlikely to at
the fourth. So, while persuasion is one
route to produce a substantial sales effect in the short term, this
effect is unlikely to register strongly in the long term. In fairness, we
should also acknowledge the possibility that advertising agencies
are more likely to submit highly creative campaigns to the IPA
Effectiveness Awards, and less likely to submit campaigns based on
establishing a new, relevant factual claim.
It does seem that persuasion is not necessary for long-term brand
building. This highlights the need to be clear in setting advertising
objectives either in terms of short-term sales effects or longer-term
brand building.
In 2005, after an extensive review of the literature, we compiled a
list of 16 emotions to represent the range of emotions advertising
could generate. (The Emotional Drivers of Advertising success: Page,
2005).
We’ve now had considerable experience of these measures, and
we have found them extremely helpful in understanding ad
performance.
While the base of brands covered is admittedly low, the average
responses for the IPA Effectiveness Awards winners seem to mirror
the UK norms (Figure 4).
A new, relevant
and credible
claim will always
have a dramatic
sales effect
Figure 2: Effie Winners
Figure 3: Cannes Lions Winners
INDICES MEDIAN NUMBER OF
BRANDS
Branding 106 16
Uniqueness 105 15
Involvement 104 15
Brand Different 102 15
Different to Other Ads 102 13
Enjoyment 102 16
Persuasion 101 12
Believeable 100 14
New Information 100 15
Relevance 99 15
Appealing 98 16
Understanding 97 16
INDICES MEDIAN NUMBER OF
BRANDS
Different To Other Ads 115 17
Involvement 113 22
Enjoyment 106 36
Appealing 101 33
Brand Different 102 26
Branding 99 36
Believable 94 26
Persuasion 97 27
Think Differently 97 15
Relevance 95 25
Uniqueness 96 26
Understanding 92 34
New Information 91 25
Figure 4: IPA Effectiveness Winners
Base: 13 Brands, 2086 Ads
INDICES IPA UK AVG
Affectionate 20 22
Annoyed 12 13
Attracted 32 36
Confident 27 32
Contented 41 40
Dissapointment 12 13
Excited 20 20
Guilty 2 2
Hatred 3 3
Inadequate 6 6
Inspired 33 32
Proud 15 15
Repelled 7 7
Sad 5 4
Surprised 33 28
Unimpressed 29 29
Creative Effectiveness
Effies
Figure 2 shows the results for the Effies. These figures must be
viewed with caution because of the lower base sizes – (55 ads,
16 brands) – but they suggest that, like the IPA winners, the Effie
winners are involving, enjoyable and well branded. However, the
Effie winners differ in that these ads were considered to deliver
unique impressions that could only be for the advertised brand, and
both the brands and ads were seen as different from others. They
perform on a par with the norms on relevance, news and credibility.
Again, persuasion is on a par with norms.
However, many individual ads did
achieve high scores on specific
emotions; these results are masked
in the aggregate data. One FMCG
brand, with an advertisement
featuring mums’ relationships with
their children, scored 60 on “affectionate” versus an average of 26;
one personal care brand, with ads focusing on sexual appeal, scored
76 on “attracted” versus an average of 45; one beer brand, with an
ad showing what excited different groups of people, scored 55 on
“excited” versus an average of 36; and a beer brand featuring a
charismatic, aspirational character, scored 41 on “proud” versus an
average of 24.
Our database shows that, among other things, emotionally powerful
ads are more memorable (“Should my advertising stimulate an
emotional response?”, Millward Brown).
The variety of different emotional responses obtained by award-
winning advertising highlights that there is no one emotion to
trigger for successful advertising. Rather, the successful ad triggers
the emotion that is relevant for that brand and positioning.
Looking at the Effie winners shows the same pattern (Figure 5); the
story lies with the individual brands. One cereal brand scored 60
on “affectionate” versus an average of 25. A food brand scored 73 on
“contented” versus an average of 48, and a beverage brand scored 52
versus an average of 35 on “excited”.
The Cannes versus global data is problematic, because we are
adding together results across countries, and again the base sizes
are low. However, overall, the Cannes winners have broadly similar
emotions to our global norms. But again the key to understanding
emotional response lies in the individual brand stories.
One FMCG brand, with an advertisement featuring mums’
relationships with their children, scored 60 on ‘affectionate’ versus
an average of 26, one personal care brand, with ads focusing on
sexual appeal, scored 76 on ‘attracted’ versus an average of 45, one
beer brand, with an ad showing what excited different groups of
people, scored 55 on ‘excited’ versus an average of 36, and a beer
brand featuring a charismatic, aspirational character, scored 41 on
‘proud’ versus an average of 24.
What This Means For Advertisers
This analysis serves as a celebration of creativity. Advertising which
is enjoyed, found involving, and stimulates the emotions in a way
that other advertising doesn’t, should be encouraged and rewarded.
But that doesn’t mean advertisers should pursue creativity at the
expense of all else.
It has long been known that advertising needs to be underpinned
by an appropriate strategy. This analysis adds another factor:
branding. It is all very well for an ad to leave vibrant memories, but
do these memories link to your brand
uniquely?
Branding has nothing to do with
repeating the brand name and
showing packs; it has everything to
do with making the brand the centre
of, and the reason for, the creative
idea. The Marlboro Cowboy, the Hovis
delivery boy freewheeling down a hill to the strains of Dvorak’s New
World Symphony, the Andrex Puppy and the Clio-driving Nicole and
Papa, are all excellent examples of well-branded advertising.
There are many ways to brand an ad but, ultimately, it relies
on creativity to integrate the brand, or an established branding
cue, into the ad in an engaging way. This analysis suggests that
advertising should also stimulate emotions; but there is no single
emotion which works better than others.
Summary
The analysis presented here helps to explain the overlap we observe
between creative advertising and effective advertising.
While creativity cannot be defined or prescribed, its effects can be
measured, and creative ads tend to be enjoyable and involving, and
different to other advertising. They tend to stimulate an emotional
response. Effective ads also tend to generate these responses – and
they are also likely to be well branded.
The analysis also highlights that one differentiator between creative
ads and effective ads is that effective ads are more likely to have the
brand as an integral part of the advertising.
There is no single route to effective advertising, and this is
particularly in evidence in looking at emotional response, where no
one emotional response seems to be related to effective advertising.
Despite having the biggest pretesting database in the world,
Millward Brown acknowledges that the base sizes for this analysis
are not as robust as we would wish. Still, we do believe that the
analysis adds a useful contribution to the debate.
The Cannes Lions have a new Creative Effectiveness category to
highlight those campaigns that have had measurable business
effects over time, and Walker’s Crisps, PepsiCo’s snack brand, won
the Grand Prix at the inaugural Creative Effectiveness Lions. This
was an ad we researched and, while we cannot discuss the research
findings in detail, we can say that it scored above average on
“enjoyment”, “involvement” and “branding”.
Over the next few years, as the Creative Effectiveness Lions case
studies continue to build, learning about the relationship between
creativity and effectiveness will only continue to grow.
Figure 5: Effie Winners
Base: 16 Brands, 7900 Ads
INDICES Effie US AVG
Affectionate 24 25
Annoyed 13 12
Attracted 40 43
Confident 45 43
Contented 46 48
Disappointed 8 8
Excited 37 35
Guilty 1 2
Hatred 2 3
Inadequate 4 5
Inspired 41 41
Proud 31 27
Repelled 7 6
Sad 3 3
Surprised 39 35
Unimpressed 18 20
Creative Effectiveness
First published in the November 2011 edition
of AdMap www.warc.com/admap
Many individual
ads did achieve
high scores on
specific emotions
Branding has
nothing to do with
repeating the
brand name and
showing packs
t’s official. The US is barreling toward one of the most
significant demographic shifts in the country’s history.
According to Census projections, by 2042 America will be a
“majority-minority” nation, where so-called ethnic minority
populations will collectively outnumber the White majority.
While this may seem a far-off reality, in some respects the
future is now: Minorities already outnumber Whites in some of the
largest and most influential markets in the country. And nationwide,
the youth consumer population reflects this reversal.
So, what does this mean for marketers? While the implications
are numerous, one thing is for sure – the traditional multicultural
marketing paradigm, originally established within a very different
socio-historic context, is losing relevance in the race for share of
hearts and wallets of this stereotype-defying, new mainstream.
I
By Ola Mobolade
Managing Director, Firefly Millward Brown
& Author, Marketing to the New Majority
@ola_FFMB
IsYourBrand’s
MarketingStrategy
2042-Compliant?
Blue-chip mega-brands like McDonald’s and Coca-Cola have made
quite public declarations of fundamental shifts in their approaches
to reaching the new consumer landscape. And with the recent string
of multicultural marketing missteps experienced by brands like
Summer’s Eve and Nivea, it’s also clear that the path to cultural
competency is not necessarily an easy one.
Unfortunately, the solution isn’t as simple as pumping up
multicultural marketing budgets (though arguably it may be a start).
Brand marketers must revamp their strategic toolkits as it relates
to how they define their mainstream audience and the role of ethnic
consumers within it.
In our newly released book, “Marketing to the New Majority:
Strategies For a Diverse World,” my co-author, David Burgos, and
I lay out an extensive blueprint for brands seeking to gracefully
navigate this new terrain.
First published in the October 10, 2011
edition of Forbes, www.forbes.com
Herearesiximportantguidelinesfor
makingsureyourbrandis2042-compliant
Culturally progressive brands go beyond paying lip service when it comes to
improving the brand’s engagement with the diverse New Majority. They go
the step further to tie it to performance reviews and bonuses. Quantifiable
performance indicators for ethnic market growth are established in advance,
and favorable reviews and bonuses are awarded when these goals are met.
Don’t call on Jose, Keisha or Jin for an ethnic-marketing role simply because
they are Hispanic, Black or Asian. If they are given this responsibility, it should
be because of their track record of expertise in marketing to these segments.
Assuming that non-White employees are interested in working on ethnic
projects may make some question whether their broader talents are truly
valued. In addition, firsthand experience living as a minority is only part of the
ethnic expertise equation, and only assures they can bring their own personal
perspectives to the table. Each ethnic consumer audience is diverse, and the
best ethnic marketers are well versed in the nuances of each segment.
Establishing a multicultural marketing department can be an important step
in the transition toward fully integrating ethnic competency throughout
the organization, but it isn’t the finish line. One of your interim goals should
be to create and leverage an internal team of ethnic experts that can be an
educational resource to sales and marketing. But, it should be viewed as a means
of achieving a greater end goal. There should also be a plan for taking off the
training wheels, so that sales and marketing are eventually empowered to deliver
culturally relevant strategies independent of the multicultural marketing group.
To be optimally effective, your company’s vision for reaching the New Majority
must come from the top. If there isn’t a C-level executive evangelizing the crucial
importance of ethnic consumers to business growth, it will be much more difficult
to implement real organizational change.
A culturally diverse workforce is essential for companies that want to relate and
empathizewiththeirmulticulturalcustomerbaseinaneffectiveway. Ifacompany’s
employee base is far less diverse than the audience it serves, it is operating at a
significant handicap. While expertise in the ethnic marketplace can come from
anyone, regardless of race, there is a certain degree of intuitive empathy and
life experience that ethnic employees can bring to the table. Also, close working
relationships among coworkers of various ethnic backgrounds help the entire
team internalize ethnic insights. A chief diversity officer can be instrumental in
realizing this vision.
For businesses that engage both generalist and ethnic agencies, the person
managing the agency relationships must set the tone for true collaboration and
an open flow of ideas.There is an atmosphere of insecurity and tension in today’s
agencies about which types are best suited to lead marketing efforts for the
New Majority. The Client contact should make it clear that they value the unique
strengths that each agency brings to the table, and be open to the best ideas
regardless of which agency they come from. A fair and relatively transparent
compensation model for the various agencies will reinforce this. Healthy
competition can yield stellar work, but if ethnic agencies feel undermined, they
may unintentionally assert their role by creating work that overemphasizes
ethnic distinctions. Invite all your agencies to strategic and creative briefings,
rather than meeting separately or leaving it to the general-market agency to
relay your direction to the ethnic agency. In these all-agency meetings, state
your preferred style of collaboration up front—or, in the case of general market
agencies that already have established partnerships with ethnic agencies, ask
them to present their process for collaboration before you begin.
The first stage of the ValueDrivers model focuses on the definition
of a brand’s meaningfully different experience. The second stage
focuses on how a brand experience that is meaningfully different
can best be amplified—that is, brought to life and made more
compelling to a wider audience. The work that goes into these two
stages leads, in a number of different ways, to the generation of
value described by the third stage of the model.
Themodelhelpsusaddresstwokey
issuesfacingbrandmarketingtoday:
FIGURE 1: Drivers of Value Growth
HowBrandsDrive
ValueGrowth
ValueDriversModel:
By Nigel Hollis, Chief Global Analyst
and Gordon Pincott, Chairman, Global Solutions
Introduction
We have developed a framework to help
businesses understand how to grow the
value of their brands which we have
called ValueDrivers.
The result of extensive analysis of our
brand equity database and
re-evaluation of our own and other
models, ValueDrivers has now been
reviewed and used by many businesses
around the world. It has formed the basis
for workshops to help individual brands
realize their potential and has provided
the springboard to a new brand equity
measurement system. It has been applied
to real-life marketing problems helping
businesses to maximise the financial
value of their brands.
The ValueDrivers model proposes that
brands maximize their potential for
growth by delivering a brand experience
that is meaningfully different from
others, and then using all available
mechanisms to amplify that.
DEFINE
Defining A Meaningfully Different Experience
People choose brands that they believe are meaningfully different
from others, provided that the difference is meaningful to them.
Offering a brand experience that is meaningfully different can
help a brand build value, either by enabling it to command a price
premium, or to capture a higher proportion of sales.
Whether a brand is perceived in this way will depend upon the
interaction of the four factors shown in the model. For a brand to
be perceived as meaningfully different, it must offer something its
competitors do not, and that offer must resonate with customers.
This is most likely to happen when a business is clear about the
purpose of the brand, and the brand delivers the differentiated
experience it promised.
Today’s markets are complex. Categories are crowded. New categories are being created to
meet the changing needs of consumers, and the retail environment is changing as well. One
consequence of this increase in complexity is that businesses sometimes focus so intensely on
communication, distribution, and pricing that they neglect to ensure that their brand is clearly
defined and differentiated.
Go-to-market options have exploded in recent years. Marketers can communicate with consumers
in virtually any place at any time, through means that didn’t exist—and in some cases were not
even imaginable—until recent years. There are more ways than ever to make brands available to
people. With so many possibilities, marketers sometimes have difficulty thinking through all of
their options for reaching customers. At one extreme, this can lead them to simply repeat the
choices they made in previous years, while at the other, it may cause them to put undue emphasis
on the latest new marketing techniques.
purpose
A brand must have a purpose. It must be intended to make some
difference in people’s lives. And to justify existing in today’s complex
and crowded categories, a brand needs a purpose that sets it apart
from others. What does this brand offer that others do not?
At minimum, a brand must have some basic functional purpose;
it must provide something consumers want or need. A brand can
satisfy emotional needs along with practical ones when it triggers
associations related to things like love, caring, or security. A brand’s
purpose can also be informed by the brand’s story or heritage.
Some brands are able to elevate their purpose to the level of an
ideal that goes far beyond the functional delivery of the product to
address higher-order needs such as fulfilment, identity, affiliation,
and societal or environmental good. For example, Jack Daniels helps
to affirm its drinker’s individuality. Pampers is devoted to helping
ensure babies are happy and
healthy. Method, the U.S. household
cleaning products company, is
dedicated to inspiring a healthy
revolution in home cleaning.
A brand’s purpose should be clear
to everyone in the company. When
an understanding of a brand’s
purpose permeates an organization,
it will be much more likely to be single minded in its focus and to
speak with one voice. A leader who is passionately concerned about
the brand can elevate its purpose, inspiring as well as commanding
others to follow.
Delivery
Differentiation is most potent when it is intrinsic, that is based
on relevant and tangible advantages and when it is powered by
the declared purpose of the brand. Intrinsic differentiation can
come through the look, feel, sound, smell, or taste of a product. The
delivery of an outstanding brand experience depends on attention to
all of the details: the consistency of the product, the functionality of
the brand’s website, the clarity of its usage instructions.
For service businesses, the human delivery is at the heart of the
brand experience. A company culture built around the brand’s
purpose or ideal will help to ensure consistent service delivery.
However, human factors contribute to the experience of other
types of brands as well—for example, the brand representatives
encountered at retail outlets, car dealerships, and through
call-centers.
Differentiation can also be extrinsic, not based on what the product
is or does but upon how it feels. Brands have personalities created
by their product experience but conveyed through what they do and
say. Brands often have associated rituals and all have iconography
that makes the brand identifiable and conveys its character. Brands
can exploit the senses beyond those that are engaged directly by the
product. Increasingly, social and environmental responsibility can
all form the basis of extrinsic differentiation. Outstanding design
can add aesthetic power to the intrinsic functionality.
Resonance
A clearly defined purpose and a company organized to deliver
around that purpose will do little to build brand value if the brand’s
offer is not meaningful and relevant to consumers. The brand must
address a real need. It must offer something that consumers need or
want at a price they are willing to pay.
However, the most powerful type of resonance occurs when strong
emotional bonds connect consumers with brands. These emotional
connections are formed when people feel that a company genuinely
relates to them and offers them brands that are not just useful but
also emotionally rewarding. This is where the intrinsic and extrinsic
elements of the delivery combine to make the brand powerfully
relevant to people.
Consumer resonance becomes more difficult to achieve as the
definition of the target audience broadens. The art of marketing
is to make the brand as relevant as possible to as many people as
possible without losing clarity about what the brand stands for.
DIFFERENCE
The degree of differentiation required for a brand to grow and
prosper will depend on the nature of the brand and category. The key
question to ask is whether your brand is different enough given its
competitive context.
While a brand can’t control its competitive context, it must
continually be responsive to it. Successful brands that want to
continue to grow need to respond effectively to new competitive
offers. When brands stagnate or decline, it is rarely because of
something they are doing. Rather, it is something they fail to do:
They fail to respond to a changing landscape and so lose their
original meaningful differentiation.
Some brands are
able to elevate their
purpose to the level
of an ideal that
goes far beyond the
functional delivery of
the product
How Brands Drive Value Growth
How Brands Drive Value Growth
AMPLIFY
Amplifying a Meaningfully Different Experience
The more powerful the experience, the more effective all the means
of amplification will be. A brand’s meaningful difference is amplified
through the following five characteristics: Findability, Credibility
Vitality, Affordability and Extendibility
Findability
Physical availability is an obvious prerequisite for brand success.
Without adequate distribution, a new brand introduction will fail,
and an established brand will fail to maximize its potential. Where it
is available a brand needs to be visible and easily identifiable. Where
online is part of the path to purchase the brand must also be
searchable.
Marketers should look for opportunities beyond traditional
distribution channels to open up new sales potential for their
brands. They need to think about all the times and places where
people might have a need for their product, and make sure the brand
is found there.
CREDIBILITY
Ideally, for maximum credibility, all of a brand’s actions need to
be aligned with the differentiated experience it offers consumers.
The brand should be refreshed and enhanced by innovation that
is based on that core difference. The launch of new product lines
should benefit from, and feed back into, the meaningful difference.
Increased credibility can also be built through association with
other organizations, brands or people who share an allied sense of
purpose.
VITALITY
A successful brand must have vitality—it must seem active and
alive. A brand’s communication must keep the brand salient and
current if the brand is to remain top-of-mind for consumers.
Use of social media can help a brand seem contemporary and
encourage people to talk about it, as long as the brand creates
experiences with inherent talkability. Communities, offline as well
as online, are powerful sources of human connection. The choice of
communication channels and the creative content should be based
on and driven by the brand’s meaningful difference. Vitality is also
served by maintaining a fresh look and feel to packaging, logo,
and communication, though innovation in these areas needs to be
balanced by the need to maintain clarity and identity.
AFFORDABILITY
The interaction of price and meaningful difference is a major
consideration in growing value. One of the most important roles
marketing can play is to frame price perceptions to best advantage.
A brand needs to be priced appropriately for its target audience.
When the price is a barrier for some people, a brand might be made
more affordable through different pack sizes or creative financing
options (e.g., purchasing over time). In some cases, it may be
possible to offer different versions of the brand, still based on the
meaningful difference, but at different price points.
People will happily pay a premium for a brand if they believe it’s
worth it. Before assuming that a brand’s price needs to come down,
marketers should think about ways to frame people’s perceptions
of their brand’s value. Does it last longer? Is it more durable? If
a brand experience is powerful enough, it might be possible to
increase the value of the brand by raising its price.
EXTENDABILITY
A major way of growing brand value is by extending a brand that
has been successful in one country into other countries. It may also
be possible to extend a brand into new categories, using the power
of the brand name to open up new market opportunities. This can
be done by the brand owner themselves or by licensing the brand to
third parties.
Brandscreatevalueoutofameaningfully
differentexperienceinfourways:
GROW
Value Growth based on a Meaningfully Different Experience
Deep understanding of all these interwoven drivers will allow
brands to build lasting value for consumers and for shareholders.
This article is based on research conducted using Millward
Brown’s database and Brand Equity model, October 2011
By extending the brand’s penetration to new customers in
the same product category
The most common way to grow the value of a brand is to extend
its reach to new customers within the same product category.
Credibility, affordability and findability are the most important
means by which brands can increase their penetration. But it is
important to recognize that this strategy carries risks as well as
rewards.
One of the most valuable roles of marketing is sustaining
the existing brand franchise and pricing. Without continued
affirmation of what the brand stands for, existing users may
become disenchanted or lured away by other more salient and vital
brands. If, in seeking to attract new users, a brand needs to amend
its existing positioning then it risks losing the very people who
currently sustain it. Many strong brands have ultimately suffered
by seeking to be all things to all people; in doing so they lose clarity
and become commoditized.
Rather than undermining an existing successful positioning, brands
should instead seek to create additional value for existing users or
extend the brand to new categories and countries.
By allowing the brand to capture a majority of sales at a
more modest price point
In the absence of any other perceived differentiation, a lower-priced
brand is likely to win out over a more expensive one. Sustaining a
price advantage over the competition has proved to be a winning
strategy for many brands. Lower pricing will result in lower margins
and therefore create a need to generate high volume; Wal-Mart
makes high levels of absolute profit by balancing lower margin with
enormous scale.
However, the commitment to sustaining low prices over the long
term has consequences for every aspect of the way a company
works, and some potential customers will inevitably be alienated by
this approach. For example, in the airline category, some people will
not accept the lack of assigned seating as a fair trade-off for a lower
fare. And when a low price is a brand’s only differentiating feature
that brand will always be vulnerable to competitors willing and able
to offer the same product at an even cheaper price.
Premium brands can capture more sales by offering more affordable
versions. This “brand down” strategy must be carefully managed to
ensure that the cheaper offering does not cannibalize the premium
one. The challenge is to ensure that customers recognize that they
are giving something up when they buy the cheaper variant.
By enabling the brand to command a price premium versus
the competition
If a brand can command a higher price, its value can be increased
without large increases in penetration. Raising prices will have a
direct effect on the bottom line since no additional production costs
are incurred. Enhancing the desirability of a brand offers the best
means to improve a brand’s ability to command a price premium.
However, the ability to charge a price premium can only be
sustained if the brand continues to justify its meaningful
differentiation. Failing to justify this leaves the brand vulnerable
to competitors charging a lower price - although strong marketing
can help a brand maintain the perception of superiority long after
other brands have matched it. Credibility and vitality are critical in
driving this perception.
By extending the brand’s reach to new countries and
categories
Geographic growth offers one of the most significant means to
grow a brand’s value. The challenge is to take what made the brand
initially successful and extend it to new countries and customers.
Often this requires some adaptation of the product and how the
meaningful differentiation is communicated. This is not necessarily
an easy task but it is less risky than launching a completely new
brand.
Similarly, extending the brand into new categories offers the
potential to leverage an existing brand franchise. This strategy
has the advantage of being able to cross sell to existing buyers of
the brand. The most successful brand extensions require a good fit
between the brand’s existing meaningful differentiation and the
needs of the new category.
sing social media and creating a regularly updated
brand fan page is not necessarily right for all brands.
Marketers want to understand in advance whether
their investments will be justified. This article helps
marketers understand whether fan pages are right for
their brand and category.
Brand fans are important because they are generally the most
valuable consumers of any brand.
BrandZ™ data based on interviews with more than 100,000 consumers
globally in 2010 – in categories from banks and cars to shampoo and
coffee – show that bonded consumers are more likely to become fans
of the brand in social media: liking it on Facebook or following it on
Twitter.
What do these figures mean for marketers like you? Do you need to
make substantial investments in building social media pages and
acquiring as many fans as possible? How likely is it that your brand
will be able to build a large social media fan base? This article
provides general guidelines on the key factors to take into account
when answering these questions.
This also means that fans of a brand are more likely to be bonded
to it. Because these fans are more attitudinally loyal to brands, they
also spend more on them.
U
IncidenceofFansbylevelsofrelationship
oftheBrandZ™brandpyramid %
11
4
1
4
2
BONDING
ADVANTAGE
PERFORMANCE
RELEVANCE
PRESENCE
Fansandnon-fansshareofwallet(%)
FANS NON-FANS
SHAREOF
WALLET13.4% 2.8%
4
62
67
83
100
19
31
37
50
Factorstoconsiderwheninvestinginsocialmedia
On average, fans will spend more than four
times as much of their total category budget
on their favored brand than non-fans
Factor1:Country
Factor2:Category
Factor3:BrandPerception
By Graham Staplehurst, Global BrandZTM
Director, Millward Brown
Duncan Southgate, Global Brand Director, Digital, Millward Brown
and Leonid Dvoretskiy, Senior Account Researcher, Millward Brown
Doesyourbrand
needsocialmedia
andbrandfans?
1
First of all, the number of fans gained by the average brand in
different countries varies significantly.
For example, if you are choosing which countries to use a fan page to
support your multinational brand, we generally see larger relevant
fan bases in Korea, Sweden, USA, and Poland. Currently, in countries
like India, Hungary, and Mexico it is comparatively more difficult to
acquire a large number of social media fans.
Much of the variation we see in the FanZ score correlates with levels
of internet access and social media use in each country. Beyond
this, social media users are converted into brand fans more easily
in some countries than others. Investments in countries where the
conversion is easier will be most efficient.
Factor1:Country
Our unique FanZ score is based on the
percentage of relevant category users
who are a social media fan or follower
of any one brand in that category.
Given current levels of social media usage,
fandom conversion is particularly high in
Korea, Brazil, and China; while acquiring
a fan in Hungary seems to be particularly
difficult.
Does Your Brand Need Social Media and Brand Fans?
Averagenumberoffanswithinacategory,rankedbycountry
KOREA			16.6
SWEDEN			11.9
usa				11.7
poland			11.5
brazil			10.2
australia		 9.7
spain			9.3
china			9.3
uk				8.6
italy			8.6
canada			8.4
germany		 7.4
japan			6.9
czechrepublic	 5.7
france			5.6
russia			4.8
THailand		 4.5
mexico			2.8
hungary		 2.0
india			 0.5
FanZScore(%)
Averagerateofconversionofsocialmediausersintobrandfans
FanZScore
SocialMediaUsage
25
20
15
10
5
0
0	10		20		30		40		50		60		70		80
CHINA
POLAND
BRAZIL ITALY
KOREA
FRANCE
HUNGARY
The category also matters. The categories with the highest average
levels of fandom globally are IT software, IT hardware, diapers,
communication providers, mobile phones and cars.
Four out of the top six categories are connected with technology,
which is unsurprising since consumers of these categories are likely
to use the web more. Brands in technology-related categories have
embraced social media to engage with their audience and provide
consumers with the latest brand information.
It is also unsurprising to see diapers in the top list as this category
embraces a very specific type of consumer. Parents are very
concerned about their children so look for additional information,
connection and reassurance through social media, and are highly
willing to discuss brands.
The car category has always been one of the most popular subjects
for offline discussions in many countries. With the growth of
internet usage, we have seen a natural transition of discussions to
the online arena (in social media, forums, blogs, etc.), and brands
naturally want to leverage their own communications through
discussion.
In contrast, categories such as motor fuel or detergents are much
less popular topics for discussion (whether offline or online). This
is clearly a barrier to generating large numbers of fans in these
categories.
The country and category rankings given previously can be used by
your brand as a general guide to evaluate potential audience scale in
social media.
However, it is important to always keep local market specifics in
mind since the categories with the most fans in a specific country
might differ significantly from the global picture.
For example, the car category in Poland evokes especially high
fandom. Nine car brands appear in the top 100 list of Polish sites
with the most fans.
Brand fandom levels can also vary significantly across countries. For
example diapers evoke incredibly high fandom in the US relative to
the global norm. This is primarily due to the impact of Pampers and
Huggies, which have almost 900,000 fans on Facebook.
Factor2:Category
Does Your Brand Need Social Media and Brand Fans?
FanZ Score
4-5% 6-7% 8-10% 11-13%
Hair Care
Insurance
Grocery Stores
Deoderant
Mineral Water
Oral Care
Motor Fuel
Detergents
Fast Food
Body Care
Banking/Finance
Soft Drinks
Coffee
Spirits
Face Care
Credit Card Networks
Beers
Airlines
Apparel (men)
E-commerce
Apparel (women)
Home Entertainment
IT Software & Gaming
Diapers
Communications
Providers
Mobile Phone
Handsets
IT Hardware &
Peripherals
Cars
Harder to build a fan base Easier to build a fan base
CarcategoryinPoland FanZ Score %
CAR CATEGORY 18
12AVERAGE ACROSS
ALL CATEGORIES
BRAND FANS POSITION
Kia 18,801 62
BMW 17,150 65
Mercedes-Benz 14,346 71
Honda 9,944 85
Volvo 8,881 88
Skoda 6,731 94
Renault 6,008 96
Chevrolet 5,004 99
Fiat 4,945 100
Brand Value Perception is correlated with fandom. Good value
brands that are able to justify their premium price tend to have the
most fans. Since fan pages provide the opportunity to keep in touch
with brands, it is not surprising that consumers reach out more to
desirable but attainable brands.
Brand Personality Perception is another factor that is also correlated
with brand fandom. Brands that have more fans tend to be perceived
as particularly creative, trustworthy, and desirable.
If your brand already has this kind of personality you might find it
easier to attract fans.
Factor3:BrandPerception
Does Your Brand Need Social Media and Brand Fans?
CASESTUDIES
Let’s now look at several brand pages with high fandom from the
perspective of these three factors: country, category and brand
perception.
iPhoneinUSA
Apple iPhone is one of the most followed brands in the world. There
are hundreds of iPhone-related pages on Facebook and the “Facebook
for iPhone” app page has more than 77 million active users a month.
The mobile handsets category has a large number of followers and
in the key US market, iPhone is characterized as a creative brand,
which helps to justify its premium price.
BlackBerryinBrazil
Facebook is clearly the major global social networking platform
currently; it can even help brands build fan bases in markets,
such as Brazil, where the popularity of the local leading site Orkut
outstrips that of Facebook. BlackBerry has built a strong social
following in Brazil and has the third-highest number of Facebook
fans in the country. The country, category and brand type are well
suited to social media and this growing brand has taken advantage
of this and attracted more than 150,000 fans in Brazil by creating a
easy-to-use page with quality
ValueDmapshowingindexedFanZscoresbysegment
HIGH PRICE
GOOD VALUE JUSTIFIED PREMIUM
POOR VALUE EXPENSIVE
126
41 86
222
HIGHDESRIE
BrandPersonality(CharacterZ)correlationwithFanZscore
CREATIVE		0.29
TRUSTWORTHY	0.24
DESIRABLE		 0.23
WISE			0.10
INCONTROL		 0.10
FACTOR APPLE iPHONE RATING
Country USA
Category Mobile Phones
Brand value Justifying premium
Brand personality Creative
FACTOR BLACKBERRY RATING
Country Brazil
Category Mobile Phones
Brand value Expensive
Brand personality Different, Creative
Does Your Brand Need Social Media and Brand Fans?
MangoinSpain
With more than 2.1 million fans on Facebook, the clothing brand
Mango has the second-largest number of fans in Spain. The brand is
seen as “good value” and described by consumers as sexy, creative,
and desirable. This is reflected in the Mango Facebook page, which
provides information about the brand and its objectives, shares
photos and videos with fans, informs fans about special events and
features an “Emotions Ranking” app which allows women
to share their mood and find out how other “Mango women” are
feeling.
McDonald’sinHungary
Although Facebook offers potential global reach, your brand may
need to consider extending beyond this to enjoy global social
media success. Brands that want to maximize their global fandom
also need to embrace other local social platforms. For example,
McDonald’s has an exceptionally strong brand position in Hungary,
however, the level of McDonald’s fandom is very low compared to
other countries.
FanZ RANKING - LEARN FROM BRANDS THAT ARE ALREADY SUCCEEDING
By covering the same brands and categories in the BrandZ research
across more than 20 countries we are able to create a global ranking
of the most followed brands in the world.
RESEARCH DETAILS
This report was compiled using 2010 BrandZTM
data – a total of over
100,000 consumer interviews and over 8,000 brand cases. These
interviews were carried out across more than 20 countries with an
average of more than 18 categories per country.
The FanZ score is based on the percentage of relevant category users
who are a social media fan or follower of any one brand in that
category.
The FanZ question was only asked among social media users (people
who participate in any on-line social networking groups - e.g.
Facebook, MySpace, Bebo, Twitter or other on-line communities,
groups or blogs).
To enable cross-country comparisons we factored the data based on
web penetration across countries.
This article is based on research conducted using
Millward Brown’s database, September 2011
Summary-lessonsformarketers
Microsoft, Pampers, Apple, and Apple
iPhone are the clear leaders with FanZ scores
that significantly outperform both the global
average and the rest of the Top 20
Although IT and telecom brands dominate the list, the Top 20
ranking also contains brands from many other categories including
cars, fast food, beer and credit cards.
Top20BrandFandomRanking
MICROSOFT		 10.5
PAMPERS		8.0
APPLE			5.9
iPHONE			4.8
NOKIA			3.8
McDONALDS		 3.5
HP				3.5
VISA				3.5
SONY			3.4
AMAZON			3.2
HEINEKEN		 3.1
COCA-COLA		 3.1
EAGAMES		 3.0
BMW			3.0
DELL			2.8
NIKE			2.8
STARBUCKS		 2.6
SAMSUNG		 2.5
ACER			2.3
TOYOTA			2.2
FanZScore(%)
GlobalAverageFanZScore=1%
FACTOR MANGO RATING
Country Spain
Category Apparel
Brand value Good value
Brand personality Sexy, creative, desirable
FACTOR McDONALDS RATING
Country Hungary
Category Fast food
Brand value Good value
Brand personality All traits low endorsement
As we would expect, stronger brands generate more fans, but we also found that the
brands which generate the most fans tend to have creative, trustworthy, and desirable
personalities. Premium brands that are able to justify their high price may also find it
easier to build a large fan base.
Some categories tend to generate more brand fans, such as technology and also
other categories that have always experienced more word of mouth communication.
Levels of fandom vary around the world: there are more social media brand fans in
Korea, Sweden, the USA and Poland, and considering the smaller absolute penetration
of social media, a proportionately large number in Brazil and China.
Fans are very valuable; they have much stronger brand equity than non-fans. For an
average brand, 62 percent of fans believe it has advantages over other brands, versus
just 19 percent among non-fans. Fans spend four times on the brand they are a fan of
compared to non-fans. This is not something we should attribute to the fan page itself;
rather this is due to the brand relationship which led someone to become a fan in the
firstplace.Thechallengeforfanpagesisthereforetodeepenandsustaintherelationship
among people who are already very positive about the brand.
rands in the U.S. have been dealing with this issue for
some time already, but the fact that the country is on
the verge of becoming a nation of minorities adds a
sense of urgency to the matter. They must win ethnic
segments to stay relevant and grow in a multicultural
American environment. Unfortunately, there is no
absolute answer to this dilemma because the situation each brand
faces is different. However, here are some important guidelines
that can help you successfully navigate today’s multicultural
marketplace:
B
By David Burgos
Vice President of Cultural Strategy, Millward Brown
@DavidBurgosatMB
EthnicTargetedMarketing:
DoWeReallyNeedIt?
First published in the August 2011 edition of
CMO Council, www.marketingmagnified.com
To target or not to target? That is the question
marketers often ask themselves when trying to
reach out to an ethnically diverse population.
Should I develop a separate strategy for each of the
segments that comprise my market, or would having
a universal approach be sufficient? What elements
of my marketing mix should I focus on if I decide to
follow a targeted route? Will the potential results of a
targeted initiative be worth the investment needed to
implement it?
1. Don’t be an ignorer
Virtually all US marketers acknowledge the importance of ethnic
segments. However, many still believe multicultural marketing
is not for them. Some believe this because they feel their product
category is a commodity; others assume ethnic consumers are
just not interested or can’t afford their offering. Quite often, these
assumptions are based on stereotypes. So whether you represent a
luxury brand or a product in a category with little differentiation,
it is important to understand the relationship ethnic consumers
have with your brand. They are an integral part of today’s new
mainstream, so you still need them to stay relevant in the future.
2. Try to find the right balance between customization
and standardization
Similar to international marketing, brands operating in a
multicultural marketplace have to find the right balance between
customization and standardization. Going too far in one direction
can mean efficiencies are lost. Going too far in the opposite
direction can cause your proposition to become less relevant to
consumers. Unlike the international discipline, however, the fact
that multicultural marketing deals with diverse people coexisting
in the same place poses unique opportunities and challenges. While
a multicultural marketplace does favor the development of cross-
cultural strategies for example, marketers should be careful because
what they do for one group is likely to impact the other segments.
Consumers do not live in ethnic versus general market worlds.
3. Incorporate the ethnic perspective in your brand’s
foundational research
It is common for brands to develop their marketing strategies based
on the needs of non-Hispanic whites (i.e., the general market) and
then try to adapt these programs to the nuances of ethnic segments.
Incorporating the ethnic perspective at the foundational level has
proven to be more effective and efficient.You can determine early on
whether and to what extent a targeted approach is needed. Often a
tweak in your advertising will be all you need to make it culturally
relevant, but sometimes more profound actions are required,
whether it is around your brand positioning, distribution strategies,
pricing structure, or even product development.
4. Engage your audience in a culturally intelligent
way that avoids forcing the ethnic factor
Plenty of data shows that targeted advertising is likely to do
better than non-targeted communication among ethnic consumers.
However, targeted advertising does not guarantee success. To be
successful, targeted ads still have to meet the basic principles of
any advertising campaign. The problem is that we often focus so
much on the cultural aspect of communication that we forget about
those principles. Remember that race or ethnicity is just one of many
factors that define consumers as human beings, and is certainly
not always the most relevant. Practice discretion in how and when
you use it—a process that I call “intelligent targeting” in my book,
Marketing to the New Majority. Consumers notice forced cultural
elements and react negatively to them.
5. Do not minimize the role of culture to casting
Cultural relevance is not synonymous with having diverse casting
in advertising. In fact, consumers are likely to reject a “one-of-each”
approach as being unrealistic. Include imagery that mirrors the
degree of multiculturalism found in your particular target audience.
Dial up diversity and cultural cues if the goal is to attract more
ethnic consumers, but always make sure your casting selection flows
nicely within the story.
6. Do not limit your conversation with ethnic
consumers to ethnic media
Ethnic consumers are exposed to both targeted and mainstream
media. Undeniably ethnic media favors the use of targeted messages
and provides a culturally relevant context for your communication.
However, mainstream media also offers interesting opportunities
within the context of the new mainstream. A concern marketers
face with regard to the use of mainstream media to target ethnic
segments is that the message can alienate their mainstream
consumers. The risk of this happening is actually low. Non-Hispanic
whites don’t necessarily view so-called ethnic communications as
being geared toward someone other than themselves, even if they
feature an all-ethnic casting or cultural cues from other racial or
ethnic groups.
7. Continuously assess how both your targeted and
non-targeted strategies are doing among ethnic
segments
It is a best practice to always look at how different ethnic segments
perceive your marketing campaigns, even if they are not specifically
targeted to them. Brands have faced damaging situations for not
doing so. A recent example is Nivea’s “Give a Damn” campaign. When
you assess the ROI of your programs, consider not only the money
needed to develop targeted approaches (spending perspective), but
also the money you would be losing if you hadn’t implemented them.
rik’s book illustrates both the complexity of neuroscience
as a field and the crucial implications it has for brand
owners as they seek to make their brands more desirable
to consumers and win in the marketplace. It is, therefore,
unsurprising that marketing and advertising conferences
now incorporate a strong neuroscience emphasis, and
many recent papers and articles maintain that scientists’ increased
understanding of the brain will change marketing and the way we
measure it. Buy-ology , by Martin Lindstrom, makes similarly strong
claims: that neuroscience will play a revolutionary role in research
and marketing in future. As a result, many marketers challenge
accepted modes of brand and advertising development and research
on the grounds that “neuroscience says” that what we’ve done before
is wrong.
Similarly, we now see neuroscience being cited in many brand
and advertising decisions. The phrase “neuroscience proves...”
is increasingly being used to justify a new model of advertising
response, brand strategy or advertising research tool (though it’s
often useful to examine just how much actual proof follows such
statements). Most crucially, over the last few years there has been
a blossoming of neuromarketing agencies who claim to deploy the
methods used by neuroscientists to answer marketing questions in a
way that conventional research cannot.
So we’d be forgiven for believing that traditional qualitative (focus
group-based) and quantitative (survey-based) techniques are not
sufficient anymore and that we need to turn to the methods used by
cognitive neuroscientists, such as brainwave measurement (EEG),
brain scanning (fMRI) and other biometrics, to really understand
how consumers will respond to marketing.
However, despite all the discussion about neuroscience, the vast
majority of brands and ads are still researched using traditional
methods. Likewise, over the last few years, papers have periodically
emerged that question the value of the whole area. So who’s right?
Are we poised at the start of a revolution or is neuromarketing
overhyped wishful thinking?
E
By Graham Page
Executive Vice President, Consumer Neuroscience, Millward Brown
Using neuroscience effectively
Increasingour
brainpower
Editor’s Note: This article is a chapter written by Graham Page excerpted
from The Branded Mind by Erik du Plessis
The current state of play
Our firm, Millward Brown, conducted its first neuroscience project
in 2004, and since then we have reviewed all the key methodologies
available in this area, working with our clients, neuromarketing
practitioners and academics. Our experience is that marketers are
increasingly turning to neuromarketing and they will continue to do
so more and more. But this has been a gradual process for several
reasons:
•	 Marketers are rightly being cautious.
Neuromarketing is new and to some people controversial. So they are
working with partners who they trust to do their homework before
adopting more widely.
•	 There are still significant practical hurdles.
The technologies are not available everywhere, and the logistics of
brainwave measurement or brain scanning are not trivial. Testing
robust numbers of participants is often expensive - or worse, not
done.
•	 The extreme claims of some of the early practitioners in the
field have inspired some skepticism.
•	 Many of our clients believe their work in this area has the
potential to generate significant competitive advantage and
so are understandably coy about sharing too much publicly.
•	 Most marketers quickly realize that neuroscience methods in
isolation can be hard to interpret and don’t stand alone.
This last point is crucial. Over the last six years we have examined
all the main techniques in the area and compared them to the
existing qualitative and quantitative work we do to ensure a realistic
perspective on what the science can and can’t say. We’ve seen that
there is clear and significant value in certain neuroscience methods,
but only when used alongside existing methods rather than as
a replacement and only if interpreted with care by people with
experience in the field.
To this end, in 2010 we created a dedicated neuroscience practice to
ensure that, as a business, we would implement neuroscience-based
approaches in a realistic manner that added to our insights about
consumers.
Applied tests
When deciding which methods to use, we have applied the following
tests:
•	 Does the method tell us something meaningful about brands
or marketing?
•	 Does the method tell us something we don’t already know
(and enough to justify the costs)?
•	 Is the method practical and scalable?
There are neuroscience-based methods that meet all three of these
tests. These are: implicit association measurement, eye-tracking and
brainwave measurement.
Excerpt from The Branded Mind
Implicit association measurement
While not strictly speaking a neuroscience technique, what it
shares with more biometric methods is the principle of inferring
consumers’ responses rather than asking direct questions. The
approach measures consumers’ reaction times or accuracy
on tasks that are systematically biased by their reactions to brands
or ads. At first this sounds strange, but the approaches capitalize on
the way the brain stores information - as a network of connections
rather than isolated units. It is for this reason, that, for instance,
thinking about the idea of a “doctor” means you will tend to respond
faster to a related idea like “nurse” than an unrelated one like
“plumber.”
Similarly, if you feel positive you will tend to respond faster to
positive words and slower to negative ones, but this is reversed if
you feel negative.
Implicit association methods have a long history of use in cognitive
psychology to infer unstated processes and responses, especially in
researching socially sensitive areas, such as people’s biases towards
different races or genders. They offer market researchers a window
to the raw ideas and feelings stirred up by brands and ads, prior to
any filtering for sense or social desirability, which still may play a
role in shaping consumers’ responses.
We have used these methods in a variety of markets and with a
range of clients to understand the implicit associations activated
by brands, by ads and by hard-to-discuss stimuli such as brand
logos. For instance, we recently used this approach to research an
award-winning Australian TV ad for Allen’s (a confectionery brand).
The spot featured a giant doll walking the streets, blowing bubbles
which turn into the product and rain down onto a crowd of children
and parents. The ad was designed to reinvigorate the brand, which,
although a long-time favorite, had lost some relevance and presence
in the market, by reminding consumers of the magic of childhood.
The ad proved to be hugely engaging but the implicit association test
identified that the ad worked in a way somewhat different from that
expected. While explicitly consumers played back messages of fun
and happiness, implicitly, the spot also communicated irresistibility
and playfulness.
Also, while explicitly the ad was not directly persuasive, the implicit
measures revealed that it strongly reawakened the emotional
connection to the brand. Therefore rather than being a simple
nostalgic look at a trusted favorite, the ad functioned very strongly
as a modernizing ad while highlighting the playfulness of childhood
and reinvigorating the emotional resonance of the brand.
Similarly, in Poland we recently conducted some logo research for
a financial services client. Logos are a topic that consumers find
difficult to talk about as they are not usually subjects of much
thought but they are full of nuance and symbolism. Although the
results from explicit ratings correlated with results from this
implicit test, the implicit method pulled out a much clearer winner,
suggesting that this is a useful approach for this type of research.
Excerpt from The Branded Mind
On the whole, we’ve found this type of approach allows us to see in
more depth whether a brand is achieving its desired positioning,
or if a campaign or logo has the potential to shape a brand’s
perceptions in the intended way.
Eye-tracking research
Eye-tracking technology is now widely used, partly because it
has become simpler to implement and cheaper than in the past.
The benefits are clear: eye movements indicate the focus of visual
attention with more detail and accuracy than self-reported answers.
However, the method doesn’t reveal why a particular area of an ad
catches the eye or how people respond to it, which is why it can be
difficult to interpret in isolation.
We have used this approach in a number of markets and have
found it a useful additional diagnostic technique that helps explain
advertising or packaging performance as measured via conventional
survey methods. In one example, we tested a particular scene from
a well-known Skoda Car ad in which the car is built entirely from
cake. This ad was shown to be powerfully branded to Skoda in our
Link survey work and eye-tracking helped illustrate why. Visual
attention was clearly focused on the Skoda badge when it is affixed
to the front of the cake-car. However, this contrasted with dispersed
visual attention at the end of the ad when the Fabia nameplate is
mentioned, which was a useful diagnosis of the weaker nameplate-
branding we saw in the survey results. In a similar project for RoC
skincare, we found a powerful illustration of a communication
barrier due to misdirected attention during a key scene. Using this
information the client was able to re-edit the ad and generate a
much stronger final film.
Brainwave measurement
Brainwave measurement is perhaps the most complex area in
neuromarketing, due to the variety of systems and companies
offering them. Millward Brown conducted one of the first large-
scale commercial EEG projects in the U.K. for the Newspaper
Marketing Agency in 2005. Since then we have partnered with U.S.-
based EmSense to integrate EEG and other biometrics with survey
tools. Using a headband with dry electrodes, EmSense collects
EEG and secondary biometric data, such as heart rate, respiration,
blink rate and body temperature. This method not only makes the
equipment less intimidating for participants and simpler to apply,
we have found it is also more cost-effective than conventional EEG
equipment, which tends to use full-head skullcaps and gel to make
connections with the scalp. Consequently, it enables full quantitative
testing (e.g., samples of over 100 versus the 20 or so typically used
in conventional EEG) and so allows cross-analysis with explicit
questions and metrics.
We have therefore deployed this technology in several countries and
it has become an important component of the ad development work
that we do. This is because brainwave data can provide a powerful
diagnostic of people’s reactions to an ad or brand experience on a
moment-by-moment basis, revealing responses that are so quick or
fleeting that respondents may not even remember them, let alone
be able to objectively report them. This can also be particularly
useful in markets such as India, China and Latin America, where
the tendency for research respondents to be positive on surveys
Excerpt from The Branded Mind
is stronger and where we may miss some negative responses as a
consequence.
We conducted Link survey based research on the Dove “Evolution”
film - an engaging, emotionally resonant and powerful communicator
of the core idea of encouraging real beauty. The EmSense data
illustrates the journey consumers take to get to that set of responses
and which creative elements drive this response. While the model
is being made-up, positive emotion actually rises (which is not
something viewers report verbally). There is also a crescendo of both
positive emotion and cognition at the moment it is revealed that
the film is about the making of an ad; as understanding blossoms
and the cleverness of the idea is apparent. This is crucial to the
overall positive reception the film generates. However, it is also clear
that as the implications of this moment sink in, positive emotions
decline as the point of the ad is considered, which is what gives the
communication such power.
Work using this form of EEG with other clients has helped reveal
and address issues such as weak communication, branding or
disengagement with key protagonists. It has also evidenced which
elements of an ad should be retained in cutdowns of long-form ads
and which elements to pull out for use in other parts of campaigns.
While we have focused on these three approaches, it is important
to remember that there is no one-size-fits-all neuroscience-based
technique; depending on the individual client issue one approach
will be better suited than another.
For instance, we have used fMRI with the Royal Mail for a project
about the effect of physical versus virtual media in marketing
effectiveness. However, it is limited in its scalability so we have
used it less extensively than the other methods outlined above. It is
important, however, that marketers use the right tools for the issue
they face, rather than treating neuroscience as a single entity and
trying to use one tool to do everything.
No substitute for talking to people
It is a misconception, and a scary one, that marketers will be able to
(or want to) just measure people’s responses to brands via electrodes
and work out what they really want. There is still no substitute for
talking to people, as this is the only way we can understand the
whole meaning of their relationships with brands and products. The
point of market research is to generate insights that lead to more
desirable brands, rather than to use the latest methods for the sake
of it. For this reason we don’t believe neuroscience methods can ever
replace the need for conversation with consumers, though we do
believe they can be a powerful complement to it. In addition, on a
practical level, survey-based techniques have been shown over many
years to have a demonstrable link to consumer behavior - and such
linkages are still being forged for neuroscience methods.
Turn their backs
We don’t believe that marketers need to turn their backs on
tried-and-true research techniques in favor of neuroscience, but we
do believe that neuroscience can offer an additional perspective on
consumer responses and motivation.
Therefore, the approach we’ve taken has been to roll out
neuroscience-based methods alongside - and integrated with -
existing tools, rather than as a replacement. Each method is used
when it will add value and when it is relevant to the client issue.
When should neuroscience-based techniques be used? Neuroscience-
based techniques will tend to add the most value under certain
circumstances:
Dealing with sensitive material. This is when qualitative/ survey
methods are most vulnerable to distortion, so methods that don’t
rely on explicit questions can reveal unstated attitudes more
effectively.
Excerpt from The Branded Mind
Dealing with abstract or higher-order ideas. Consumers face
challenges when trying to talk about the often complex ideas at the
heart of many brands’ positioning. Implicit association methods,
in particular, can be useful at probing for ideas that participants
think sound strange or overblown on a survey or which they might
discount as irrelevant when answering explicit questions.
Probing for transient responses to ads or brand experiences.
Consumers are great at talking about the gist of an ad or brand or
experience but they may not be able to articulate all the steps in the
process that got them there. Biometric methods, such as EEG, can
add value in pinpointing the emotional or cognitive highlights and
low points in a piece of creative, or the focus of attention, which can
provide useful insights for developing more effective campaigns for
brand experiences.
Giving more detail on consumers’ feelings. Feelings can be difficult
for people to talk about, though qualitative and survey-based
methods can help people do this. However, neuroscience methods
can add an additional level of detail here, about the depth of
emotional response, the timing of these responses and the elements
of an ad or brand that are driving the way consumers feel. Given the
importance of emotion in motivating behavior, these methods have a
role to play here.
In terms of specific research applications, the differing advantages
of each method mean they lend themselves to different areas of
research. Implicit association measurement is well-suited to brand
strategy work, product testing, concept testing and assessment of
communication from marketing campaigns. Eyetracking is strong
on in-store and online marketing optimization and advertising
development. Brainwave measurement adds greater detail in these
areas, especially regarding emotional and cognitive responses, and
thus lends itself to advertising optimization.
Best practices
Based on our experience researching and implementing these
methods, we suggest the following best practices to get the most out
of neuroscience:
Be critical. The technology can be alluring, but the same questions
(detailed above) that would be asked of any conventional research
technique should be asked of these methods. Ask for proof.
Look for experience. This is a complex area, so familiarity with the
approaches and a scientific perspective is important to understand
what is claim versus reality and when neuroscience adds most
value. Likewise, experience in drawing together neuroscience and
conventional research is key to maximizing the value.
Integrate. Neuroscience-based methods do not reveal the inner
truth; rather they provide additional perspective on consumers’
responses to brands and marketing, which needs interpretation in
the light of other information. A holistic approach reveals greater
insight than conventional or neuroscience methods alone.
A standard tool
Our experience suggests that in the future, neuroscience-based
research will be a standard tool in the researcher’s toolkit but
it won’t be the only tool. Neuroscience techniques on their own
can’t fully explain consumers’ responses. The most complete
understanding will come from integrating information rather than
looking at one perspective alone and using the right tool at the right
time.
Excerpt from The Branded Mind
First published in the May 2011 issue of
Quirk’s Marketing Research Review
KNOWLEDGE
POINTS
Knowledge Points are drawn from the
Knowledge Bank, consisting of our databases
of over 150,000 brand reports and 95,000
ads, as well as 1500 case studies
dvertisers often ask us how many GRPs they can
put behind an ad before it “stops working.” They
also wonder if past copy can be rerun or if it has no
remaining value. These are important financial issues
for them. Producing TV ads is expensive and requires a
long lead time. Airtime may need to be booked months before actual
airing, and an assessment of the number of ads required needs to be
made early.
How might TV ads wear out?
Conceivably, an ad might wear out in its ability to accomplish any one
of the basic advertising tasks. An ad could wear out in terms of:
•	 Generating engagement, i.e., making people aware that the brand
has advertised
•	 Creating an attitudinal or empathic response among viewers
•	 Communicating messages or impressions
•	 Producing a brand response, including sales
Engagement
Millward Brown measures Engagement through the Awareness Index,
a metric that describes a brand’s ability to make people aware that
the brand has advertised. Our evidence suggests that in this respect,
TV ads very rarely wear out. We analyzed 450 ads that aired in two or
more bursts and observed that the Awareness Index (AI) changed in
only 6 percent of cases. (And in the cases where the AI changed, the
direction was evenly split: AIs went up in 3 percent of cases and down
in 3 percent of cases.)
Ads that are good at generating branded awareness tend to remain so
over time. However, factors external to the ad itself can occasionally
seem to cause wearout in this respect. One such factor could be
the ad’s content — for example, if a featured celebrity falls out of
favor with the public. But another more common cause of apparent
wearout is heavy media spending over a short period of time. When
this occurs, multiple exposures will net more repeat viewings than
new ones, limiting any incremental increase in advertising awareness.
Attitudes/empathy
Most of the time, attitudes toward an ad hold steady over bursts.
The two charts below, generated from data in our tracking database,
illustrate this. For both the positive statement “You enjoyed watching
[the ad] a lot” and the negative statement “You’re getting fed up with
seeing it,” there is a strong correlation between the level of agreement
on the first and second bursts of advertising.
When we do see attitudinal wearout, it tends to occur when an
ad that some viewers find irritating is aired with heavy spend.
Alternatively, an ad can become less enjoyable if some aspect of it
goes out of fashion. For example, we tracked an ad that featured a
current pop song, which aired in three bursts over a two-year period.
During the first burst, 71 percent reported enjoying the ad. But by the
third burst, the enjoyment score had plunged to 56 percent, as the
song had lost its appeal and freshness.
KNOWLEDGE
POINT
DOTVADS
“WEAROUT“?
Broadly speaking, the response generated by a TV ad
doesn’t change much over time. True “wearout” of a TV ad
is rare, and many TV ads could have a longer useful life
than advertisers realize. The one real exception to this
rule has to do with ads that focus on product news.
Such ads will become less effective over time, because the
people who are receptive to the message will be persuaded
quickly, while those who are not receptive will not be
won over by repeated viewings. Saturation of media weight
over a short space of time can also create the impression
of ad wearout; however, in such cases it may be the media
buying strategy, rather than the effectiveness of the
specific execution, that needs to be reviewed.
A
FIGURE 1: Enjoyment
FIGURE 2: Getting fed up with seeing
100
90
80
70
60
50
40
30
20
10
0
0 10 20 30 40 50 60 70 80 90 100
% ‘You’re getting fed up with seeing it’(141 ads)
FIRST BURST
SECONDBURST
% ‘You enjoyed watching it a lot’ (258 ads)
100
90
80
70
60
50
40
30
20
10
0
0 10 20 30 40 50 60 70 80 90 100
FIRST BURST
SECONDBURST
KNOWLEDGE
POINT
DOTVADS“WEAROUT“?
Communication
In terms of communication, the effectiveness of TV ads tends not
to change over time. The messaging does not wear out, as shown
in the chart below, where a key message registers consistently on
two different bursts of advertising. This consistency is due to the fact
that viewers don’t tend to notice new things each time they see an
ad. Rather, they focus on the parts of the ad that they initially found
involving.
Brand and Sales Response
The area in which TV ads are most likely to wear out is in their ability
to generate responses to brand measures and/or to motivate new
purchases. This type of immediate response is measured through our
persuasion questions, and wearout in this type of brand response is
likely to occur in ads that depend on news. Ads with new and different
messages will typically convert all the consumers they are capable of
converting in a fairly short time. This happens because people who
do not notice the message or don’t find it relevant are not likely to
notice it or find it more relevant with subsequent viewings. Thus the
“news” quickly ceases to be new, and there are no viewers left to be
persuaded.
This is illustrated in the following example, where the level of news
and persuasion decline over time, even though enjoyment of the ad
holds steady.
Recognizing and Dealing with Wearout
As we have demonstrated, wearout sometimes occurs—or appears to
occur—in engagement, when saturation of media weight over a short
space of time creates the impression that the ad is no longer having
impact. These cases, where spend produces increased frequency at
the expense of coverage, shouldn’t be regarded as wearout. Rather,
the apparent decline in ad impact is an effect of diminishing returns.
If the ad is aired again sometime later, its ability to generate branded
impact will most likely be as strong as it was initially. It may be that
the media strategy is intended to build heavy frequency, in which
case this outcome is to be expected. But if this isn’t the intention, the
media strategy may need to be revisited.
While the attitudes produced by TV ads tend to remain consistent
over time, some ads do have the potential to generate increasing
levels of irritation on repeated viewing, and ads that reference current
trends or events in popular culture may become less enjoyable over
time. It is worthwhile to monitor these attitudes over time for long-
playing ads.
Ads that focus on product news are definitely susceptible to wearout.
Such ads will become less effective over time, because the people
who are receptive to the message will be persuaded quickly, while
those who are not receptive will not be won over by repeated
viewings. In anticipating whether or not this is likely to occur, it is
important to consider the ad’s objectives and whether the message is
intended to be perceived as new. An ad with a message that is new,
relevant, and different may challenge consumers’ buying habits when
they see the ad, thus increasing their consideration for the brand. This
may lead to increased trial. An ad with a radically different creative
style may accomplish the same effect. As we have said, wearout will
generally occur only in the ad’s ability to persuade, as measured by
our Immediate Persuasion question. Can we predict the point at
which an ad’s ability to persuade has worn out? Every case will be
different; even within each country, the variability in the effectiveness
of the advertising copy can be massive and media plans can vary
enormously. But we can say that this wearout is likely to occur when
the the ad’s reach has been maximized. Once the ad has been noted
by the bulk of its likely viewers, its news value will dissipate.
We can provide some general country-specific guidelines based
on our knowledge of how advertising awareness builds in response
to spend. By assuming average weekly spend (per country) for an
average ad, and average effects from other conditions, the cumulative
GRP spends in the table below will generate around 90 percent of the
advertising awareness likely to be achieved.
FIGURE 3: Key message - strongly suggests
Key message - % strongly suggests (118 ads)
100
90
80
70
60
50
40
30
20
10
0
0 10 20 30 40 50 60 70 80 90 100
FIRST BURST
SECONDBURST
FIGURE 4: News does wear out
Enjoyment
Newinformation
Morelikelytobuy
Jan-FebSep-Oct Mar-Apr
88%
67%
66%
83%
61%
62%
85%
55%
50%
Country GRPs Country GRPs
Philippines 7000 Czech Rep 1350
Indonesia 3350 Denmark 1300
Vietnam 2400 Hungary 1300
Chile 2100 Ireland 1200
Portugal 2000 South Africa 1200
Turkey 2000 India 1150
Pakistan 1750 Malaysia 1150
Romania 1750 Sweden 1150
Brazil 1700 Russia 1100
Italy 1650 Australia 1050
Thailand 1500 China 1000
Mexico 1500 France 1000
Netherlands 1500 Japan 1000
Poland 1500 USA 1000
Spain 1450 Germany 900
Argentina 1350 UK 900
FIGURE 5:
KNOWLEDGE
POINT
DOTVADS“WEAROUT“?
We should emphasise that this type of wearout relates only to ads
dependent on news for their effectiveness. Also, these are generalized
guidelines only. The actual effects of any wearout that occurs will
vary by a whole host of factors relating to the ad, brand, category, and
market. Each of these factors can have a meaningful impact on the
rate at which the ad wears out as well as the effectiveness it retains
after the ”news” has faded.
When an ongoing campaign depends on challenging consumers
by delivering news, it needs to be periodically refreshed with new
arguments and/or new executions, for two reasons. First, the “news”
needs to be kept new and relevant to those persuaded by the first
presentation, and second, a new approach may persuade those who
were previously unconvinced.
However—and this is key—just because the news value has dissipated,
the ad is by no means worthless. It will continue to contribute to sales
by reminding people of the good things about the brand and the
interesting and engaging aspects of the brand’s personality.
When to move on?
The majority of campaigns are successful without relying on a
constant supply of news; instead, equity and clarity of positioning is
built through consistency of messaging that is memorably associated
with the brand (as measured through the Awareness Index). In these
cases, ads can have a long shelf life. Repetition can help to build
a brand in the long term, even if a short-term brand response is
minimal. So before an ad or campaign is assumed to have worn out,
long-term sales effects should be investigated.
But this doesn’t necessarily mean that the same execution can be
used ad infinitum. While it’s true that many executions could be used
longer than they are currently, there are a number of reasons for
advertisers to move on with new ads. To ensure long-term success,
brands need to project a sense of leadership. To create this sense of
a brand leading the way, new ad executions are likely to be needed. In
addition, the competitive context needs to be kept under review; if a
competitor changes campaign, this could negatively affect your sales,
making it necessary to refresh your activity. It is also important to
look at the broader picture, considering areas such as the continuing
relevance of the strategy and positioning, changes in the target group,
and where the brand is in its lifecycle.
Ultimately the judgement will be one that assesses the opportunity
cost: Will a new ad, with a potentially refreshed (or new) message,
be more effective than an existing ad, and will that increased
effectiveness justify the cost of creating that ad?
Campaign Wearout
Campaigns can wear out in the same ways that individual ads can. In
the example illustrated by the chart below, a long-running campaign
featured a particular celebrity with the potential to irritate. Irritation
did grow over the course of the campaign; this was particularly
evident in ad L, but even ad P, in which strenuous efforts were made
to address the irritation issue, was still found to be considerably more
irritating than the early ads in the campaign.
Another possible cause for campaign wearout is related to changes
in society and attitudes over time. A good example from the UK is
the PG Tips “Chimps” campaign, which was dropped after 40 years
because attitudes toward performing animals had changed.
When assessing campaign wearout, some specific issues need to be
taken into consideration. For example, an apparent issue could be due
to specific executions rather than the campaign as a whole; a new ad
may be performing less well in terms of brand integration or clarity of
message, or the mix of ads in the campaign may have changed and
become less effective.
In one example, wearout of branded impact seemed to be occurring
over the campaign. Subsequent ads were becoming less efficient. We
found two reasons for this. The weight of spend was increasing over
time, resulting in a degree of media saturation. But there was also
a lack of product integration in the later ads that indicated that the
structure of the individual ads needed to be refocused. Additionally,
some campaigns that seem to be wearing out can be revived, perhaps
by a product innovation, or a new slant to the scripts.
How does the use of PVRs affect wearout?
It’s possible that increased adoption of PVRs may cause wearout of TV
ads to increase. This could happen if PVR viewing makes people more
likely to fast-forward through ads they have seen before. However,
currently there is little evidence that such behavior has a significant
effect, and research by Millward Brown suggests that ads seen in
fast-forward mode can be just as strong at sustaining ad awareness,
provided they’ve been seen at regular speed previously. (See our POV
“Who’s Still Afraid of the DVR?” )
FIGURE 6: Irritation with campaign grows
%
13
15
12
15
17
11
11
17
18
20
22
32
23
28
25
19
19
20
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Campaignaverage
Categoryaverage
Ad
hile most parts of the world have been officially out of
recession since the summer of 2009, the economic
recovery in most Western countries has not been strong.
The current uncertainty about the economic climate,
especially the speculation that we may experience a
double-dip recession, is making both consumers and marketers
nervous.
During the 2008 downturn, there were regular reports of consumers
struggling with their finances. For example, two-thirds of Australians
reported that their spending habits were affected by the financial
climate, with four in ten reporting that they spent less on staples.
(And technically, Australia was not even in recession.) In the United
States, spending on credit cards increased markedly in areas of high
unemployment, and fewer consumers reported paying their credit
card bills in full every month.
During times such as these, in the face of pressure on people’s
budgets, many marketers choose to meet profit targets by using
promotions to maximize short-term sales while cutting investment in
long-term build-branding activities.
The Importance of a Strong Brand
While the reaction to cut investment in seemingly non-essential
activity is understandable, it doesn’t bode well for brands in the
long term. Our analysis (see chart below) shows that as a group, the
strongest brands—those in the BrandZ Top 100—have outperformed
the S&P 500 since the recovery began.
Conversely, brands that were already weak going into the recession
tended to suffer disproportionately.
A powerful example is the retailer Woolworths. Though the chain
went out of business in the United States in 1997, it was still
conducting business in the UK during the first decade of this century.
However, its brand equity pyramid had shrunken considerably from
2001 to 2008, and Woolworths failed to survive the recession, closing
its doors in 2009.
Clearly, brand strength needs to be nurtured and maintained through
good times and bad. Based on our decades of experience studying
and advising brands, we can make five recommendations for
marketing and maintaining brand health in uncertain times.
1. Review your marketing plans
It is never a bad idea to review your marketing plan, but during
challenging times, it is especially important to re-examine the
fundamentals; both vulnerability and opportunity could be uncovered.
An example of a brand that addressed a vulnerability is Barclaycard.
In the UK, Barclaycard ran a successful celebrity-based campaign for
many years. But by 2008, it was clear the brand was losing relevance.
It was seen as old-fashioned and was not appealing to the new
generation of card holders. A major research program investigated
the attitudes and behaviors of these younger consumers, and led to
the development of the completely new “Waterslide” campaign. Sales
modeling showed the new campaign generated £22m profit.
An upscale brand in the personal care category found a way to turn a
potential vulnerability— its premium price—into an opportunity. Back
in 2000, Dove recognized the challenge for its premium moisturising
soap in its Turkish markets. Because it was much more expensive than
regular soap, Dove was traditionally targeted at upscale women. But
during the 2001 recession, a new brand team crafted a value-oriented
appeal to middle-income consumers—a far larger audience—based
on the proposition that Dove both cleans and moisturizes. Dove more
than doubled its share of spend from 2000 to 2001, resulting in a
market share gain of 5 percentage points by the middle of 2002.
In times of economic uncertainty, marketers tend to
shift their focus from long-term strategy to short-term
sales. However, lessons from recent recessions provide
powerful arguments for maintaining a longer-term view,
even in the face of pressure to cut advertising in favor
of promotions. Marketers who resist this pressure and
use their budgets effectively and creatively will find
that their brands emerge from the tough times in good
competitive shape.
W
KNOWLEDGE
POINT
MARKETINGIN
UNCERTAINTIMES
KNOWLEDGE
POINT
FIGURE 1: BrandZTM
Portfolio vs. S&P 500 (Apr 2006-2011)
©The Brand Dynamics Pyramid and the underlying methodologies are the copyright of Millward Brown
FIGURE 2: The Decline of Woolworths
7%
55%
67%
79%
93%
32%
59%
75%
85%
1%Bonding
Advantage
Performance
Relevance
Presence
Base (400)					 (400)
2001					 2008
BrandZTM Portfolio S&P 500
60
40
20
0
-20
-40
-60
(%)
	 Jan07 Jan08 Jan09 Jan10 Jan11
Source: Bloomberg; MB Optimor London Analysis
41.8%
-3.7%
2. Beware of reducing your ad spend
While reducing advertising spend can seem to be a logical way to
bolster short-term profitability during a recession, it can also deliver
negative consequences. This is in part because advertising has both
long- and short-term effects on brands. On average, the ratio of
long- to short-term effects is about 3:1, though this varies widely
across campaigns, and we have seen campaigns with ratios as high
as 5:1. (Note: Short-term effects are generally defined as those that
occur in the eight weeks following the start of advertising.)
While brands that “go dark” don’t seem to suffer major shifts in
brand perceptions, 60 percent of them deteriorate on at least one
key aspect. Such losses can herald problems in the future, since
once declines set in, they can be hard to reverse. The chart below
provides an example. A brand came off air in one region (Region B)
while it continued advertising in the rest of the country. Within a year,
market share had dropped 2 percent in Region B while it held steady
elsewhere. And—critically— even when advertising resumed in the
dark region, the share in that region continued to lag behind the rest
of the country in the two subsequent years.
The long-term effects of advertising are also illustrated by the
relationship between share of market (SOM) and share of voice (SOV).
It has been proven that when a brand’s SOV exceeds its SOM, the
brand is more likely to gain share in the following year. Decreasing
spend might cause your SOV to slip and leave your brand vulnerable.
On the other hand, if you increase your marketing investment at a
time when competitors are reducing theirs, you should substantially
increase the saliency of your brand. This could help you establish a
long-lasting advantage.
A Millward Brown analysis of 354 brands, summarized in the chart
below, highlights the value of maintaining advertising investment.
Brands were ranked according to their spend in relation to their
market share. Then, according to this rank order, they were combined
to form 20 groups (the first group consisting of the brands with
the highest difference between SOV and SOM, the second group,
the next-highest difference). This measure is represented on the
horizontal axis of the chart below. Each group of brands is positioned
on the vertical axis according to the percent of brands in each group
that lost market share in the subsequent year. The declining trend line
clearly shows that relative under-investment is linked with a greater
risk of market-share decline.
Increasing ad spend at a time when other brands are cutting theirs
may seem unnecessary or even wasteful. But at such a time—when
demand for media time and space is decreasing— media costs are
likely to go down, and you may be in a strong position to strike a
good deal. In the UK, Audi, with a new campaign, increased its media
spend by 10 percent from 2008 to 2009; as a result, its order book
was up 79 percent. Also in the UK, Heinz increased its weight of spend
in 2009 to address the threat posed by store (shop’s own) brands;
as a consequence, Heinz became the fastest growing major CPG
company in the UK.
KNOWLEDGE
POINT
MARKETINGINUNCERTAINTIMES
FIGURE 3: Region B suffers in Year 2 and Year 3
Market share
Region A
Region B
Year 1 %
1
0
-1
-2
-3
Year 2 Year 3
FIGURE 4: Advertising investment reduces risk
100
50
0
%LOSINGSHARE
MEDIA PRESSURE
(SHARE OF VOICE-SHARE OF MARKET)
-30%						 0%							 30%
3. Ensure your copy is working as hard as possible
While ideally you should aim to at least maintain your level of spend,
you may be able to compensate for reduced spend with stronger
copy. That is, with more impactful creative, you may be able to
maintain or even increase your level of ad awareness, even with a
reduced budget. The chart below summarizes the brand outcomes
for various combinations of share of awareness and share of voice.
When both of these measures declined (lower-left quadrant),
brands tended to lose share. When they both increased (upper-right
quadrant), brands tended to gain share. However, when share of
awareness increased and share of voice declined (the lower-right
quadrant), more brands gained share than lost it. Thus strong creative
can provide powerful leverage for your spend.
So then the question becomes – how do you increase ad awareness
with lower spend?
The answer is “creativity.” Great advertising is memorable. By 2009,
Barclaycard’s “Waterslide” campaign was recalled by 46 percent of
people, and ranked among the top 10 publicly voted “Ads of the
Decade.”
Analysis of our Link copytesting database shows that overall average
scores did not change during the recession. Despite tightened belts,
people continued to find advertising to be relevant or irrelevant,
enjoyable or not enjoyable, involving or not involving, in the same
proportions as before. The rules of effective communication do not
change during a recession; great advertising is still great advertising,
even in uncertain times.
4. Be creative with media
Careful and innovative use of media channels can pay dividends,
particularly with the recent increases in the number of media
channels. While the Barclaycard “Waterslide” campaign aired on TV,
it also aired in cinemas, and was supported in print, online, and with
PR. Additionally there was an iPhone game, and the ad went viral on
YouTube, with over 7 million hits.
If you use a particular vehicle to make contact with customers, use
that vehicle to deliver special offers, relevant news, and information.
During Brazil’s 2002 recession, Unilever launched a customer
magazine, Diva, to communicate with key customers. The result of
extensive research, Diva contained articles on money-making ideas
as well as Unilever brands. It also incentivized readers to buy Unilever
brands by offering to pass some of the profits on to charity.
5. Don’t get defensive; use promotion sparingly
The use of price promotions to help generate consumer spending,
while common, can damage brands. One brand that had reduced
media expenditure reported increasing share in line with promotions.
Analysis showed that, in fact, the share increases were entirely due to
the price promotion.
The brand’s underlying base sales for the brand were in decline, and
this decline was matched by tracking study measures.
In product categories where the brand is less important (such as
motor fuel, mineral water and grocery stores), price promotions are
more likely to be effective, but even so, these are likely to erode brand
equity. In the UK, as a result of a price war in an over-the-counter
(OTC) brand category, the total volume sold on promotion increased
by 15 percent in one year. The result was that value was driven out of
the market—the total value of the category fell by 14 percent. At the
same time, loyalty to specific brands declined; while 81 percent of
buyers were “loyal” to a brand before the price war, just over half (55
percent) remained so afterward.
Premium brands may feel threatened when consumers are keeping a
tight grip on their wallets, but being premium in itself isn’t necessarily
a problem. When the premium car brand Audi reoriented its campaign
around the rational message of fuel efficiency, its brand desirability
increased. With positive and proactive management, brands—even
premium brands—can ensure their long term success even during
uncertain times.
SomeoftheexamplesandcasestudiesusedinthisarticlearefromtheIPAEffectivenessAwards
KNOWLEDGE
POINT
MARKETINGINUNCERTAINTIMES
FIGURE 5: Share of awareness
Increase
share of voice
Deccrease
share of voice
Decrease
share of
awareness
Increase
share of
awareness
19%
more
brands
lose
share
than
gain
20%
more
brands
lose
share
than
gain
31%
more
brands
gain
share
than
lose
12%
more
brands
gain
share
than
lose
he voiceover is a very common feature of TV advertising
across the world. Of the ads in our Link database, 89
percent include voiceovers. Since they are so common
and can be edited relatively easily, voiceovers are a worthy
topic for scrutiny.
What Voiceovers Do Well: Aid Communication of Information
Voiceovers are often used to convey information, and they can do
this effectively. On attributes related to news and information, ads
with voiceovers score slightly but consistently higher than ads without
voiceover. Not only are key messages communicated better, but ads
with voiceovers score higher on credibility, conveying new information,
relevance, and persuasion. The indexes on these measures for ads with
and without voiceovers are compared in the table below.
Changes made to a voiceover can lead to dramatic improvement in an
ad’s performance. When a taste message came through only weakly
for an ad for a new biscuit in China, adjusting the voiceover made a
difference. In the original ad, the intended message registered with
just 34 percent of respondents, well below the norm of 55 percent.
When this new voiceover was added: “delicious but does not leave the
mouth feeling dry,” communication of the taste message shot up to 53
percent. When the voiceover was modified further, to “really delicious,”
communication reached 61 percent. The advertising contributed to a
successful product launch; trial levels for the new cookie reached 80
percent within six months.
A change in voiceover also made a huge difference for a personal care
brand. Two versions of an ad were tested. Both had the same end frame,
but one had a voiceover to support the written message of “developed
with experts,” The takeout of the message was more than twice as high
for the ad with voiceover, 44 percent versus 17 percent, as shown in the
chart below.
But Voiceovers Don’t Do It All
Whilethefiguresinthetableaboveshowedthat,inrespecttoinformation,
ads with voiceovers seem to outperform ads without voiceovers, we
must remember that not all ads are intended primarily to communicate
information or to be persuasive.
The fact is, it is not always appropriate to use a voiceover. If your primary
goal is to entertain people or remind them of your brand, a voiceover
may actually interfere with the achievement of your objective. As shown
in the table below, ads without a voiceover are more likely to be enjoyed
and more likely to be seen as different to other advertising. However
they are also less likely to be understood. So in deciding how and when
to use a voiceover, keep your key objectives in mind.
Voiceovers Should Work with the Story
Voiceovers don’t always aid communication, particularly when they
compete with an engaging or compelling story being shown in the ad.
An Indian ad was designed to communicate that the brand contained
ingredients that helped enhance immunity. The commercial showed
a husband feigning sickness and his wife catching him in the lie. A
voiceover explained the brand’s benefit, but most viewers seemed to
be focused on the story being told on the screen, because they did not
pick up either the voiceover or the message. The ad was modified so
that the wife explained the benefits to her husband as part of the ad’s
story, and the edited version performed substantially better on both
impact and persuasion.
FIGURE 2:When supported by the voiceover, the
message was taken out at much higher levels
FIGURE 1
HowShouldVoiceovers
BeUsedinAds?
Voiceovers are commonly used in ads across the world,
and they seem to aid the communication of factual
messages. However, voiceovers are less commonly
associated with distinctive ads, and continuous
voiceovers can result in lower engagement. Additionally,
the manner in which a voiceover ties in with an ad’s visual
content is critical: When voiceovers and visuals compete,
the voiceover message can get lost.
T
KNOWLEDGE
POINT
Index
Link Metric With
voiceover
Global base Without
voiceover
Global
base
Key Message
Communication
101 13982 98 1565
Credible 101 35151 97 3195
New Information 101 50643 94 6270
Relevant 101 50444 95 6254
Persuasive 101 49640 96 6246
Prompted communication -
“is developed with experts”
17%
Without v/o
support
44%
With v/o
support
Base: 100
FIGURE 3
Index
Link Metric Without voiceover
Enjoyment 103
Different 104
Easy to Understand 97
Timing with Visuals
The voiceover needs to complement the visual content of the ad. If it
doesn’t, the message it intends to communicate is unlikely to register.
This is the most common problem we have observed with voiceovers.
One personal care brand tried in several ads to convey that it was 75
percent more efficient, but in none of the executions did the visual
content support the message, and as a consequence, the message was
lost. Ads tend to communicate far more successfully when they both
show and tell—i.e., when the visuals dramatize what the voiceover is
saying. One personal care ad in Indonesia was failing to communicate
its intended message. The ad was revised to cut down the voiceover,
and to tie the communication of the key “confidence” benefit with a
relevant scene. Communication of the “confidence” message improved
from 58 percent to 73 percent, and the revised ad was more persuasive.
Television tends to be a far more expensive medium than radio—this
is partly due to its wider reach, but it is also because it gets moving
images, accompanied by sound, into people’s homes. You pay more
for those images, which are often the most memorable parts of the ad,
so it is crucial that the voiceover and visual content work well together.
Less Can Be More
Voiceovers should be used sparingly. Of the ads in our database that
use voiceovers, 63 percent use them only during certain parts of the
ad, or at the end only. Pauses and silences can help add emphasis, and
allow time for the message to be absorbed. When we focus on ads that
use continuous voiceovers, we see that they tend to be less involving
(indexing at 99) than ads that have no voiceover or a voiceover at the
end only (indexing at 103). It seems that continuous voiceovers can
wash over viewers and lull them into inattention.
We tend to see issues with continuous voiceovers more often with
translatedads;whenanadistranslatedintoanotherlanguage,sometimes
it takes more words to explain certain concepts (especially when the
concept is one that has special resonance in the ad’s original market). A
UK deodorant ad that had performed well in research was subsequently
translated into Polish and tested again. In the Polish version, viewers
did not play back the differentiating message; instead, they took out
a generic deodorant message about efficacy. As a result, the ad did
not convey its news, and failed to create a sense of differentiation. A
comparison of the audio soundtracks of the two ads showed that the
Polish version was sonically “busier.” It provided less aural down time to
allow viewers to process the ad’s message.
Another ad for a new deodorant scored poorly on all key metrics.
Analysis showed the ad had a comprehension problem, with over a third
of respondents finding it at least somewhat difficult to follow. Since the
ad was already in a finished film state, the main changes made to the
ad related only to the voiceover. The English voiceover in the original
ad had a French accent. The revised version featured an English accent.
But the voiceover was leaner only 69 words, versus 80 in the original.
In addition there was a title card, setting up the story from the opening
shot. Comprehension improved dramatically with only 9 percent having
comprehension problems, and the ad’s persuasive strength moved from
low to high. The subsequent launch was a success.
The Voice in the Voiceover
The voice in the voiceover can make a big difference. One ad, with local
translations and voices, was tested in the UK, France and Italy. In the
UK the ad received a high level of dislikes, which further investigation
showed to be largely due to the voiceover. The voice was regarded
as “silly,” and detracted from the key message. However, in France
and Italy, there were almost no mentions of “silly voices.” In the UK,
persuasion was greater among those who did not mention the silly
voices compared to those who did mention them.
Regional accents can often add to enjoyment, especially when they
are used in a playful manner. However, if an accent is too strong, it
can be hard to understand, and this can lead to lower comprehension
and enjoyment for the ad. Also, since people tend to be proud of their
accents, if the accent is over-exaggerated and clearly not genuine, it
can annoy people from that region.
KNOWLEDGE
POINT
HowShouldVoiceoversBeUsedinAds?
FIGURE 3: A louder pattern for the Polish ad with no real breathing space
POLISH
Soundwave length from audio soundtrack
UK
Millward Brown experts are available to speak globally. Please contact:
Global - Miquet Humphryes
Miquet.Humphryes@millwardbrown.com
North America - Jamie Jones
jamie.jones@millwardbrown.com
www.millwardbrown.com
Produced by
Miquet Humphryes, Delyth Hughes, Katie Pearce, Dede Fitch
Millward Brown Global Communications
Morgan Bullock, Michael Almon, Mike Agee, Lisa Parente
Millward Brown Global Brand Marketing
Dominic Twose
Millward Brown Knowledge Management
©Millward Brown
Perspectives

Millward Brown Perspectives Vol. 6

  • 1.
  • 2.
    Dear Friends ofMillward Brown, In today’s fast-moving digital world Millward Brown continually leverages new technologies.  For the past five years, we’ve published Perspectives, an annual compendium of our perspective on issues weighing on the minds of marketers around the world.  In our latest issue, we’ve gone mobile with the release of our iPad magazine app, which we plan to update quarterly.  If you’re reading this letter, you have already downloaded the app or the PDF from our website, and you now have the latest Millward Brown thinking at your fingertips. When I say we leverage new technologies, I mean that on so many more fronts than just the mobile format we’re using to deliver thought leadership!  You’ll see that nearly half of the articles in this edition of Perspectives touch on the role of digital and mobile channels in brand building. We hope you’ll follow us closely over the next year as we make a number of important announcements about our enhanced digital capabilities. We see 2013 as a particularly exciting year on this front. This issue also features thinking on the fast growing BRIC markets, neuroscience, and the art and science of brand building – from the importance of brand ideals to our newly launched “Meaningfully Different” framework – and how both create financial value for brand owners. As always, we’d love to hear from you regarding the pressing issues on your mind.  Our goal is to use the collective learning and amazing talent of our teams, and our vast data assets to help you answer the big marketing questions of the day.  Please do reach out to me or to any member of our extended team – Millward Brown, Dynamic Logic, Firefly Millward Brown, and MaPS – with suggestions on how we can best serve your evolving needs. With warmest regards, Eileen Campbell, Global Chief Executive Officer, Millward Brown Eileen.Campbell@millwardbrown.com WelcometoPerspectives
  • 3.
    Contents Volume 6 PointofView PUBLISHEDARTICLES KNOWLEDGEPOINTS ChangingChannelswithConfidence CreativeStorytelling:ForSponsors,anOlympicSport IntegratedPlanning:StandingOutintheCloud WhatWeCanLearnFromIconicBrands SocialMedia:FansandFollowersAreanEnds,NotaMeans WhyBrandPersonalityMatters China’sTop50:MuchProgressButMoretoDo NotJustDifferentButMeaningfullyDifferent TheOverlookedPowerofMedia Ideals:TheNewEngineofBusinessGrowth Mobile:AnEffective-YetUnloved-MarketingMedium EmergingLuxuryStrategies EconomicGrowthDrivesBrandAwareness TheRisingMiddleClass LargeandOpenMarketOpportunities BuzzMeansMoney BrandPersonality WhyOptimizationisPartDataandPartInstinct OnlineBuildsBrands,IfYouKnowHow China’sBrandChallenge GlocalEvaluation:MeasuringEffectiveness TurningBigDataintoBrandData TheFutureofSocialForBrands TurnOn,TuneIn,WatchOut SocialMediaBestPractices CreativeEffectiveness IsYourBrand’sMarketingStrategy2042-Compliant? ValueDriversModel:HowBrandsDriveValueGrowth DoesYourBrandNeedSocialMediaandBrandFans? EthnicTargetedMarketing:DoWeReallyNeedIt? IncreasingOurBrainpower DoTVAds“WearOut” MarketinginUncertainTimes HowShouldVoiceoversBeUsedInAds? Aknowledgements
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    While they areaccustomed to changing the creative content of their campaigns on a regular basis, there is no automatic driver that encourages the adoption of new media channels, and marketers themselves may be disinclined to make changes. Changing established media allocations is risky; weighing the options requires time and effort. The fear of making the wrong decision can make exploration seem daunting. But avoiding innovation carries its own risk. The world moves forward, and those who don’t advance with it will be left behind. Marketers need a way to embrace change without being swallowed up by it. How can they manage that process? In 2011, Jonathan Mildenhall, vice president of global advertising strategy and content excellence at the Coca-Cola Company, introduced his company’s new approach to investing in creative content. Coke is implementing a model they call the “70|20|10 investment principle,” an adaptation of the established 70|20|10 protocol for apportioning resources or investment.i Mildenhall explained that in its quest to double the size of its business by 2020, Coca-Cola would apportion its communications spend as follows: • 70% would support low-risk, “bread-and-butter” content. • 20% would be used to innovate based on what has worked in the past. • 10% would fund high-risk content involving brand-new ideas. We think this approach makes a lot of sense. It has worked for Google, where the company implemented it as a way to manage innovation, applying 70% of its workforce effort to core businesses, 20% to adjacent products, and 10% to highly experimental innovation for the long term. We expect it will also work for Coke as they innovate in developing their creative content. Furthermore, we think that the application of 70|20|10 can go beyond creative content to media planning, specifically in terms of the allocation of resources to new channels such as mobile and social media. In fact, we believe so strongly in this approach that we are proposing it to our clients as the framework they can use to“change channels with confidence.” DUNCAN SOUTHGATE Global Brand Director, Digital JOHN SVENDSEN Global Brand Director, Media Point of View New media channels are emerging all the time, and marketers are often unclear how to choose among them ChangingChannelswith Confidence:AStructurefor Innovation
  • 6.
    A Structured Approachto Innovation Amara’s Law ii states that“we tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.”The adoption of a 70|20|10 approach is a way of counteracting both of these tendencies. However, the 70|20|10 model should not be considered a strict formula. The precise allocations are not important; what is essential is that some fixed proportion of spend is regularly devoted to innovation. This practice will encourage forward thinking and experimentation in a disciplined and structured way. By using such a framework, brands can steer a safe and prosperous middle path while evolving both their media and their research budgets. While 70|20|10 is new as a formal framework for media planning, some brands have already experienced great success in applying its principles. One example is Sheilas’Wheels, a UK insurance brand targeted at women. When their first offering, car insurance, was launched in October 2005, the brand invested 30% of its TV budget into sponsoring drama. This was considered innovative at a time when most insurance brands focused almost exclusively on TV spot advertising. This venture helped Sheilas’ Wheels reach an awareness level of 75% just three months after launch, and to surpass its internal sales targets by 65% during the first year. Sheilas’Wheels subsequently expanded its sponsorship allocation, and in 2008, when the company launched its home insurance product, it made sponsorship its largest platform by investing £10 million (equivalent to US$20 million) in one of British television’s biggest sponsorships slots: the ITV National Weather broadcast. Thus in a short time, sponsorship became an important. 70% activity for the brand. The 70|20|10 Allocation 70% – The Comfort Zone For most brands, the 70% zone of low-risk, bread-and-butter marketing is likely to involve established channels such as TV, print, outdoor, and radio. But this will vary across categories and countries. A strong FMCG/CPG brand in the United States might use TV, outdoor, online display, and online video. A brand in a considered purchase category in Germany might use print, sports sponsorship, online search, and online display. A new service brand in Japan might use TV, event sponsorship, mobile display, and QR codes. For some brands, the 70% could also include word-of-mouth marketing. But to say that 70% of the budget should fund communications in channels that are considered to be safe, familiar, and effective is not to say that 70% of a media budget should remain static from year to year. Based on ongoing learning and evolving brand objectives, channel composition within the 70% could vary significantly over time and from campaign to campaign. 20% – Innovating Around What Works Innovating around media approaches that are known to be effective could include a broad range of options. It could mean taking a small risk, such as increasing your spend on a channel that seemed to work well in your 10% last year. It could mean spending behind a channel where you don’t have concrete research evidence of a return on investment. Or it could mean taking a risk in an established channel that is familiar to you, perhaps by sponsoring a sporting event for the first time when you have previously been known for associations with music festivals. For many brands across a range of categories, social media currently falls into the 20% category. Brands have some practical experience and strongly believe in the exciting new ways social media allows them to interact with their consumers. But they still have questions about the return on their investment, and they are still learning how to create and deliver campaigns that are truly social by design. 10% – Into the Unknown The 10% zone is the place where genuine experimentation takes place with new and emerging channels. But this risk-taking should be in line with brand and campaign objectives; iPhone apps and Pinterest pages are right for some brands, but not all. For many brands, mobile currently falls into the 10% category. The mobile marketing landscape continues to evolve as ownership of smartphones and tablets grows rapidly around the world, and questions abound about the best ways to take advantage of these new opportunities. CokeUKisreportedtohavea“mobilefirst”mentalityintheirplanningprocess. Starting with the 10% not only ensures that 10% innovation happens; it also ensures that these projects are given due consideration and a chance to play an integral role in the overall campaign, rather than being seen as afterthoughts. Point of View ChangingChannelswithConfidence:AStructureforInnovation
  • 7.
    The 70|20|10 ANDRESEARCH BUDGETS Research and measurement are key drivers of innovation, so the 70|20|10 principleshouldbeappliedtotheresearchbudgetaswell.Table1summarizes the goals and outcomes for both the media and research choices within each of the three types of activity. However, as we stated at the outset, the critical element of the 70|20|10 approach is the commitment to consistently allocate resources to new channels, even if the proportions are not exactly 70|20|10. For research expenses, the proportions could vary widely, and they might not be the same as the proportions used for media. For measurement of the 10% and the 20%, you may end up“overinvesting”if research needs to be created specifically to measure the return from a new channel. To really understand how a new channel works, it may be necessary to spend as much on research as on the media itself. However, we are not suggesting that researchers can afford to take their eyes off the 70%. Even when the media used are known to be effective, learning from research may call for incremental adjustments that will have significant effects. And there are very compelling arguments for investing in research that can help to optimize the mix across channels. 70|20|10 in Practice When assessing how your current media budget stacks up against 70|20|10, it is important to consider all the costs involved in a particular channel. Projects in the 10% zone are likely to be relatively resource intensive even if media costs are low. Therefore, to ensure that the 70|20|10 approach is applied comprehensively and fairly across the full spectrum of paid, owned, and earned media channels, brands need to weigh all the costs associated with each channel, including not only hard media outlays but also the cost of support, production, and organizational expenses. In large companies, experimentation may be spread across brand portfolios or markets. One sub-brand may attempt an augmented reality campaign while another builds a mobile app. Pooling learning in this way improves the breadth of experimentation possible and helps speed progress in identifying the channels most likely to move from the 10% to the 20% in future years. Research budgets will likewise go further if partners can be recruited. Media agencies, media owners, and research agencies all have an interest in understanding how new channels work and might be eager to participate in joint projects. Conclusion Marketersconsiderchanneloptimizationeverytimetheyplannewcampaigns. Some are actively involved in changing their channel mix, while others leave these recommendations to their media agencies. Marketers that adopt a 70|20|10 approach will know that new channels will be given a chance to shine and that their media plans will evolve through a systematic process. By overlaying a comparable approach to research planning, companies can ensure that they extract maximum learning from this process. Marketing and insight-generation skills will evolve in parallel, and the ultimate result will be a meaningful difference in brand success. Point of View TABLE 1 70│20│10 for Media and Research Comfort Zone (70) Innovate on What Works (20) The Unknown (10) Goals Reach target with intended messages. Extend both reach and strategy. See if it works! Outcomes Campaign delivers as expected against plan. A familiar strategy is extended, with some ROI, some pleasant surprises. Practical learning and ideas for the future, with an occasional runaway success. Goals Evaluate communication/ effectiveness of media mix. Identify media impact. Assess channel potential/gain ideas. Type of Research Mainly established techniques. Mix of newer and established techniques. Brand-new approaches, trial and error. Outcomes Incremental optimization gains make a large absolute difference. Optimize/extend use of channel. Winners and losers identified (failure of campaign is successful learning). ResearchMedia ChangingChannelswithConfidence:AStructureforInnovation
  • 8.
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    Beyondthetwoweekspackedwithexcitementand good feelings, the2012 London Summer Olympics is set to leave its own lasting legacy for Britain and the world. The Power of Stories The greatest legacy of the London Games, and of all Olympic Games, is in their stories. The stories that unfold during the Olympics turn into legends that stay with us and inspire future generations. Stories make us care. A powerful story can make us care about a sport we’ve never watched, a person we’ve never met, or a country we’ve never visited or even located on a map. Among the stories we witnessed this past summer: American swimmer Michael Phelps becoming the most decorated Olympian ever; South African swimmer Chad le Clos—who was 12 years old when he was inspired by Michael Phelps in 2004—beating Phelps in the 100-meter butterfly; Jamaican sprinter Usain Bolt winning gold in both the 100 and 200 meters (and leading the Jamaican sweep in that event); and South African “Blade Runner” Oscar Pistorius competing in both the Olympics and the Paralympics. These athletes join icons such as track and field star Carl Lewis, a gold medalist in four separate Olympics, and gymnast Nadia Comaneci, still held up as an exemplar of perfection after scoring perfect 10s in 1976. Marketers understand the power of stories. That’s why brands work so hard to bring out their own stories on the world stage, from Coca-Cola celebrating 125 years of sharing happiness to Omega opening a museum dedicated to the history of its watch brand. Brands are more than products we buy. Brands are ideas we buy into. Stories, more than any other marketing component, facilitate that process of“buying in.” The Challenge of Olympic Sponsorship The power to enrich brand equity by the values, stories, and associations linked with the Olympic Games has brands forking out hundreds of millions for the privilege of being called Olympic sponsors. But successfully activating an Olympic sponsorship presents a unique set of challenges. First, there is the challenge of being heard among so many sponsors vying for attention at the same time. Then there is the issue of relevance. How does a brand contribute to the Olympic ideal of “faster, higher, stronger”? How can sponsors prove that their brands are relevant to the Games? In their article “Building Brand Image Through Event Sponsorship: The Role of ImageTransfer,”published in theWinter 1999 issue of the Journal of Advertising, KevinGwinnerandJohnEatonrefertotwokindsofrelevanceforeventsponsors: function-based similarity, where the sponsor’s product is actually used in the event, and image-based similarity, where the sponsor’s image is convergent with that of the event. It is very easy for a sports brand to score highly on functional relevance. If we consider the 2012 Olympic sponsors, Adidas was the only brand with a very obvious and direct link to sports. As the Official Sportswear Partner of London 2012, Adidas led the way at the Olympic Games by outfitting more than 80,000 “Games Makers” (Olympic volunteers) and supplying kit for 3,000 athletes. The brand’s “Take the Stage” campaign was very convincing, and Adidas was fortunate in being able to sponsor some highly successful Olympians, including gold medalists Jessica Ennis (heptathlon) and Bradley Wiggins (cycling). No wonder Adidas saw the highest brand impact among the sponsors on many counts, including short- term sales pickup. Research by Nielsen found that Adidas was regarded as the most inspirational and most empowering brand among all the sponsors, and social media research from Sociability identified Adidas as the brand that created the most positive buzz during the Games. For brands that don’t have an obvious functional connection to the Olympics, it’s harder to justify the appropriateness of a sponsorship. This is where the true art of marketing and creativity kicks in, especially in the form of storytelling. By tellinggreatconvincingstorieswell,brandscancreateveryvisibleandsuccessful sponsorship programs. This past summer, the various sponsors told their different stories in different ways, and some fared better than others. Here is my take on the results of the Sponsorship Storytelling event: The bronze medal goes to: BMW, the Official Automotive Partner for the London Games The story of BMW’s Olympic sponsorship is in the mileage it got out of product placement opportunities. One achievement was the showcasing of 4,000 cars dressed in Olympic livery as“best in class”in terms of fuel economy. Even more impressive was putting BMW-owned MINIs in view of close to one billion people around the world during the Opening Ceremony. But the real coup was the employment of a fleet of radio-controlled miniature MINIs used at the track and field events. In a stadium that was brand-and advertising-free, as many as 80,000 spectators (not to mention the television audience) could see the adorable mini- MINIs retrieving javelins, discuses, hammers, and shots, saving time and effort and drawing smiles all around. On the back of this entertaining MINI-spectacle, BMW rapidly climbed the table published by CityAM, jumping from fifth to third place by the end of the first week of the Games. Brands are ideas we buy into. Stories, more than any other marketing component, facilitate the process of“buying in” Point of View Anastasia Kourovskaia Vice President, Millward Brown Optimor Every two years, the world stops to watch the greatest show on earth: the Olympic Games.The appeal of the Olympics is universal; its impact, tremendous, and the London 2012 Summer Olympic Games were no exception. CreativeStorytelling:For Sponsors,anOlympicSport
  • 10.
    The silver medalgoes to: BT, the Official Communications Services Partner for the London Games. The story of BT’s successful sponsorship has its roots in the company’s early and unwavering enthusiasm for London’s bid for the Olympic Games. BT not only provided IT and technical expertise during the bid process, but also worked in a variety of ways to generate support for the bid among an ambivalent public. Then, after being announced as the OfficialTelecommunications Partner of the Games in 2008, they embraced the sponsorship opportunity, continuing to beat the drum for the Olympics and Paralympics. Using minimal advertising, they based their strategy on Olympic-themed activities, among them the sponsorship of the National Portrait Gallery’s “Road to 2012” exhibition as well as the sponsorship of a competition for would-be torchbearers. They consistently celebrated milestones to the Games; the celebration of“1,000 days to go” featured spectacular fireworks from the top of the BT Tower that were broadcast around the world. It looks like BT’s strategy of focusing on activation and taking the Games to the people paid off, as on a modest budget BT generated over £60 million in media- equivalent coverage and engaged with tens of thousands of consumers. And the gold medal goes to: Worldwide Olympic Partner Procter & Gamble for their outstanding multilevel campaign P&G took on a multilevel challenge with their sponsorship: to link both the corporate name and a number of individual brands to the Games. And they met the challenge with a brilliant and multifaceted campaign that garnered acclaim from many sources. The shining centerpiece of P&G’s effort was the corporate“Thank you, Mom”campaign, which featured both the P&G umbrella and individual brands. Ads that focused on“the hardest, best job in the world” paid tribute to mothers everywhere who sacrifice and work tirelessly to support their children. “Mom-umentaries” that featured the stories of great athletes as told by their mothers ran on TV and could also be viewed on Facebook pages set up for 29 countries. Brand-level campaigns continued with the theme of raising an athlete. For example, ads for Fairy Liquid informed us that it takes 20,000 meals (and dishes) to raise an athlete. A Pampers ad featuring beach volleyball gold-medalist Kerri Walsh thanking her mom, Margie, achieved an unparalleled level of immediacy and relevance when it ran during the break of one of Kerri’s matches. After the Games, Pampers is continuing its “Spirit of Play” campaign, which features Olympians and their young children. P&G’s laundry detergent Ariel starred in the “Proud Keepers of our Nation’s Colors” campaign, which was localized for countries from Mexico to Turkey, Ireland to the Philippines. And as a Londoner, I was very impressed by the“P&G Capital Clean-up,” a branded version of the annual Capital Clean-up, in which P&G sponsored a number of branded clean-up activities prior to the Games. LESSONS FOR ASPIRING SPONSORS If you are a brand marketer who aspires to someday compete on the world stage in sponsorship storytelling, what can you learn from the London Games? How can you emulate the most successful sponsors? We have the following suggestions. Make your brand a part of the story None of the brands on our medal stand had a functional connection to sports, but they found ways to weave themselvesintotheLondon2012story anyway. They looked for roles to be filled and created parts for themselves. BT was not only the communications specialist, but also a lead cheerleader for the Games and for London. BMW not only exploited the MINI’s heritage in evoking the home country’s pride, but cleverly created a functional role for the MINI. So whether you’re sponsoring the giant slalom, the Soap Box Derby, or a regional spelling bee, work your brand into the story of the event. Be creative As Dominic Twose points out in his POV “Creativity in Advertising: Eyebrows, a GreekBanquet,aViolin,andSomeInvisibleFish,”creativityaidsmemorability.The right creative treatment can plant emotional associations so deeply that people simply can’t forget them. The mini-MINIs delighted us and fixed an indelible image in our memories, linking the cars to the Games. The P&G ads showing pint-sized, baby-faced competitors preparing to dive off the platform or mount the balance beam enabled us to see Olympic athletes as sons and daughters, and that vision filled us with pride—both vicarious pride in the upbringing of our national champions, and real pride in the hard work of rearing our own children (with the help of products from P&G). Find a new and different way to make your audience emote, or at least smile, and you have a chance to form a lasting impression. Go the distance The successful sponsorships were the result of expansive vision and sustained effort. BT started early and stayed in for the long haul. P&G extended its vision across its brands—and rolled up its sleeves. It got behind the Capital Clean- up campaign, and in its home country, the United States, committed to raising $5 million to support youth sports programs. P&G may have sponsored the Olympics,butitusedtheopportunitytolendsupporttootherongoingcauses— national and civic pride, and support for young people. Whether you’re sponsoring the giant slalom or the regional spelling bee, work your brand into the story of the event Point of View CreativeStorytelling:ForSponsors,anOlympicSport Watch the‘Thank you Mom’ad (requiresinternetconnection)
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    Point of View TheSponsorship Games: Play to Win An Olympic sponsorship is a huge investment for a brand. And yet securing the sponsorship is just the beginning. Sponsorship rights are the steep entry fee you must pay for the chance to get your brand’s name on the program. But tens of millions of dollars should buy more than just name recognition. To form meaningful and lasting associations that will build your brand, you need to dig deeper. Invoke the story of the event and knit your brand into it. Create a relevant part for your brand, and the rewards will be great: When the race is over, your brand will be embedded in the compelling stories that form the core of our Olympic memories. Invoke the story of the event and knit your brand into it. Create a relevant part for your brand, and the rewards will be great CreativeStorytelling:ForSponsors,anOlympicSport
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    In today’s world,it’s a certainty that brands will encounter numerous uncontrolled interruptions as they try to engage and persuade people.We need to better grasp the reality of clutter and turbulence in themoderncommunicationsworldandthedramatic effects these phenomena have on advertising impact. And though the term “the Cloud” is already familiar in the context of Internet-based computing, we think that a cloud is also an apt metaphor to describethefluidandunpredictablemixofmessages and influences that surround today’s consumers. Clutter It is a general trend that more clients are using more media to communicate to more consumers in more ways. As Internet penetration grows worldwide, so too do the opportunities to communicate, both for existing advertisers and for new players who enjoy lower entry costs for marketing. Our estimates suggest that Internet-enabled people experience at least 40 percent more display ads. How many messages are getting lost in all this noise? We all know about the evils ofTV advertising clutter, but for decades, even more clutter has existed in radio, print, posters, and outdoor advertising. People have become acclimatized to it and have become very good at detecting tiny bits of relevance buried in masses of irrelevance. In response to still more clutter, people simply—and unconsciously—gear up for a higher level of selectivity. And we have seen the results. We have seen the impact different levels of TV clutter have had across countries: The more clutter there is, the harder it is for the average ad to cut through. Here the word“average”is important. Advertising that resonates with its intended target can significantly outperform weaker competition. But producing better-than-average advertising may be easier said than done. Turbulence In the past, advertisers and their competitors would follow similar plans. They would battle for hearts and minds across the same territories and time frames. Today, however, the spread of messaging is becoming more diverse over both media and time as clients mix individual campaigns with ongoing engagement programs. Advertisers have made these adaptations in response to changes in consumer behavior. Through social and search media, people have more ways to talk to eachotheraboutproductsandservices;nowadaysitiseasyforpeopletodotheir own research or get advice from experts. A simple online search reveals a vast new wealth of options to explore beyond actually buying the major mainstream brands. One shopper might decide to buy the shop’s own brand since someone told her it was just as good. Another might be attracted by the offer of a fun- loving new category entrant. Someone shopping for vacation packages might change course midstream and decide to build his own holiday, while creative types might be inspired by an online forum to make their own hummus. At any stage on the path to purchase, a shopper might veer off in a different direction.There is no telling when or where a consumer might encounter a new idea or a competitive or confounding message. As my daughter would say,“How random is that!”How do you manage communications in such circumstances? A New Model: Cloud Thinking We think marketers can still succeed in this new world, but success will require a new way of thinking, which will lead to a different model of communication and messaging. We think a different paradigm is needed, one that focuses not just on the consumer and the media, but also on the environment in which today’s consumers exist. In thinking about the complex infrastructure of tomorrow’s communications, we like the aforementioned metaphor of a ”Cloud.”The Cloud is the composite noise surrounding every person. Each individual’s Cloud consists of all the influencesthatpersonisexposedtothatcouldpossiblyaffectbrandperceptions. These influences could occur at any time at any place through any mechanism. They include communication activities of the brand or its competitors, brand experiences, things other people have said or written in the media, and in-store Sue Elms Head of Global Brands Millward Brown Point of View Thereisnotellingwhenorwhereaconsumermightencounter anewideaoracompetitiveorcofoundingmessage Businesses spend a lot of money on brand communications because they know that effective communications are vital to brand health and wealth.The imperative is to build brand preference among consumers and to hold onto it in the long term. But the risk is greater than ever that communication will not hit home or that it will be counteracted by uncontrolled influences. IntegratedPlanning: StandingOutintheCloud
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    Point of View Inthinking about the complex infrastructure of tomorrow’s communications, we like the aforementioned metaphor of a ”Cloud.” The Cloud is the composite noise surrounding everyperson.Eachindividual’sCloudconsists of all the influences that person is exposed to that could possibly affect brand perceptions. These influences could occur at any time at any place through any mechanism. They include communication activities of the brand or its competitors, brand experiences, things other people have said or written in the media, and in-store activities. The Cloud varies in density at different times and in different places, and is continually in motion as the prevailing winds blow items closer to and farther away from the person in the middle. The Cloud accompanies each person through all of his or her daily activities, good and bad, fun and boring, planned and unplanned. “Cloud thinking” gives us much needed humility in thinking about people’s consciousness of brands. At best, any one brand can make up only a very small part of a person’s Cloud, and the pressure it exerts there will depend on the frequency of its contacts as well as the degree to which people experience those contacts as resonant. Communications Principles for the Future ThinkingaboutthecommunicationsinfrastructureasaCloudleadsustoidentify a few key principles of communication planning. Always understand the“now” of the brand Strong brands need to stand for something, especially in this new, complex, and interconnected world. But the Cloud makes it difficult for them. In the Cloud, it is alltooeasyforevenstrongbrandstolosetheirclarity.Therearesomanypointsof contact and so many conflicting impressions. So, as marketers focus on making connections with individuals, they need to remember that few brands, and even fewer consumers, are truly “clean slates.” Consumers will always synergize their brand impressions against the prevailing associations in their personal Clouds. Uncovering these associations—which form the attitudinal backdrop for a brand—is the secret for brands hoping to resonate with consumers. This makes it vital to always know the “now” of the brand—that is, what this attitudinal backdrop is. This is why tracking in one form or another will become even more vital as a marketing tool to understand the current intensity of people’s emotions, knowledge, and experiences relating to a brand. Identify the center of gravity For long-established brands like Coke and Harley-Davidson, attitudinal backdrops will have been created in the pre-Cloud era and will gravitate toward a compelling center of gravity, such as a mass agenda or a brand ideal, that enables people to instinctively recognize the brand and what it stands for through whatever brand impression they encounter. Such iconic brands may not need to spend time and money on creating new mass agendas. But new or struggling brands do—and they need to find a way to build and maintain these in the Cloud. Plan for meaningful coincidences Sometimes people make intentional contact with a brand, as when they use it, buy it, research it, or discuss it with someone else (particularly when they’re in a seeking mode). The more often this happens, the better off the brand will be—as long as the brand meets expectations after it has been sought out and acquired.Infact,forabrandnotto“bethere”whenandwherepeoplearelooking for it is one of marketing’s biggest financial crimes. Historically, we have been able to rely on television advertising to “prime” consumers and encourage response to other brand activities. We have clearly seen from CrossMedia evaluations that prior exposure to TV commercials significantlyimprovesresponsetootherbrandactivities;atthesametime,these other brand activities deliver deeper connections than TV can do alone. When a job is tough—like a launch or repositioning—we have seen how important multiple media exposure is. But in the new world, achieving these media synergies within a defined time period is going to be more difficult. A lot more effort will have to go into understanding people’s lives and finding moments when they are “open” to the brand and when the brand’s communications could be relevant to them. On the positive side, digital media present increasing opportunities to be part of people’s lives in more places and on more occasions, and should help advertisers by providing far more contextually relevant opportunities to talk—e.g., on the bus, in a coffee shop, in the pub, in a waiting room. Maximize the impact of every contact It’s hard for brands to push or pull Cloud-enveloped consumers directly, so influence is more likely to come from small nudges as individuals run into a multiplicity of brand connections in different orders over time. Communications will have to give up the notion of storytelling in favor of facilitating the process throughwhichconsumerspiecetogetheran overall view from a long tail of connections. The challenge will be to ensure that any combination of elements, encountered in any order, will be effective, and that any gaps in exposure (even someone skipping all TV ads) will not matter too much. Though their specific tasks may differ, each impressionmuststaytruetothecoreideaof the brand, and must be designed to prime and recruit other impressions in the Cloud. It will be vital to find something that works through every connection. Iconography, symbolism, idiom, and implicit communication will become far more important to support the delivery of powerful and synergistic brand impressions. Throw away the“pseudo-scientific” media plan Inthefuture,marketingcampaignswon’thavediscretebeginnings,middles,and endings.Alreadyweseeamovefromcampaignstocontinuouscommunications. Alreadywehaveclientsaskingustoevaluateongoingsocialprogramsintegrated with long-term brand content, as well as sponsorship programs combined with advertising activity to boost specific tasks. While there will always be plenty of science in the evaluation of response to in-market exposure—digital media measurement ensures this—planning will need to become more creative, connected, and bold. Media planning will be about distributing various forms of brand content that will be relevant to people in different decision states, regardless of the order in which it is distributed. The end game will be“share of Cloud.” We certainly look forward to seeing visualizations of expected market impact that are far more inspiring than the current Excel worksheets of media research numbers! Conclusion Cloud thinking helps us more easily embrace the complexity of the present and future communications world, and embracing that complexity is essential if we are to help brands succeed. Cloud thinking encourages planning that is creative, connected, and bold, both within and across disciplines. As a result of this new way of thinking and the planning it generates, brands will be able to make solid and genuine connections with consumers in an environment that is constantly in flux. Through those connections, brands can build the strong and long-lasting consumer relationships that lead to financial success. Communications will have to give up the notion of storytelling in favor of facilitating the process through which consumers piece together an overall view from a long tail of connections IntegratedPlanning:StandingOutintheCloud The Cloud is the composite noise surrounding every person. Each individual’s Cloud consists of all the influences that person is exposed to that could possibly affect brand perceptions
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    Yet among themindless white noise of modern marketing, a few brands stand out from the crowd. Admired and packed with meaning, these truly iconic brands inspire passion and fierce loyalty among their customers. They represent the gold standard of branding. Any marketer worth his salt would die to work with an iconic brand—or better yet, to help create one. But the process by which brands become iconic is often more accidental than designed. In his book How Brands Become Icons, former Oxford University professor Douglas Holt sheds light on the nature and origins of iconic brands. In that work, he asserts that iconic brands respond to a society’s desires and cultural tensions by drawing on their own unique myths and stories. However, the anecdotal nature of Holt’s approach makes his findings difficult to apply to less distinguished brands. And most brands cannot hope that a societal trend or need will suddenly make their brand meaningful and result in its being adopted as a cultural icon. So what universal themes apply to all brands, not just those that are already iconic? What guidelines can be applied to make any brand more successful? This point of view seeks to address those questions. Beyond Recognition: Symbols and Meaning One characteristic of iconic brands is that they are instantly recognizable. In my 2007 POV on iconic brands, I cited the familiar shapes of Legos, the VW Beetle, and the golden arches of McDonald’s. The Oreo cookie, which turned 100 years old earlier this month, is another example—the dark embossed biscuits sandwiching the white cream center make Oreos easily distinguishable from any other cookie. Powerful visual cues such as these confer major advantages, but recognition alone does not constitute iconicity. Advertising icons such as the Pillsbury Doughboy, the GEICO Gecko, and Aleksandr Orlov (the meerkat of comparethemarket.com) make their brands recognizable without making them iconic. The Oxford English Dictionary defines an icon as“a person or thing regarded as a representative symbol of a culture, movement, etc.; someone or something afforded great admiration or respect.” I believe this definition works well for iconic brands; it suggests that they must not only be easily recognizable, but also stand for something that people admire and consider meaningful. In his book Brand Meaning, Mark Batey dedicates a lot of space to symbolism, which, according to Batey, is one of the constituents of brand meaning. Symbols like the Marlboro cowboy or the Harley-Davidson eagle stimulate the imagination and, through the power of suggestion and association, connect to ideas and values. It is the symbolic importance of an iconic brand’s identity that enables it to leverage its recognition far beyond that of other brands. And, once recognition has been achieved, that symbolism helps ensure that a brand’s meaning is understood and shared across a wide audience. Meaningiscriticaltosuccessfulbrandsandtoiconicbrandsinparticular.Iconic brands are not just distinctive; they are different in a way that is meaningful. The Oreo has a characteristic appearance, but it also stands out in people’s minds for the sensory rituals they associate with eating it (twisting the wafers apart and licking the cream, dunking in milk) and the warm feelings of sharing those experiences with family and friends. Those good feelings are kept alive with ads that show people interacting over Oreos: brother with brother, mother with son, grandfather with granddaughter. These idyllic depictions represent family life as we might wish to experience it, and they evoke a powerful response. The second of Douglas Holt’s iconic brand principles is that iconic brands develop identity myths that address people’s desires and anxieties. The Marlboro man represents the values of the Western frontier: He is strong, independent, and capable. By presenting a consistent image over time, the brand has come to embody the frontier myth that now proves particularly appealing in developing economies. But Marlboro’s time as an iconic exemplar may be nearing an end because, in Marlboro’s homeland, the nature of iconic brands has changed. Instead of presenting identities that they grow into, some of today’s most iconic Western brands embody those identities from the start. Their identity myths have become experiential and vital. For example, Red Bull was designed from the ground up to appeal to a specific mindset, and the energy drink has been marketed with unique advertising and a wide variety of adrenaline-inspired events. Powerful visual cues confer major advantages for brands, but recognition alone does not constitute iconicity Nigel Hollis Chief Global Analyst Millward Brown Point of View TheeasilydistinguishableOreocookie In today’s complex and busy world, brand names are everywhere—plastered all over websites, inside subway cars, on the sides of buses, and even in public toilets. But most of the time, even though they’re accepted as part of the scenery, these brand names don’t signify much to those who observe them. WhatWeCanLearn fromIconicBrands
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    A Compelling BrandExperience An iconic brand is recognizable not because it has invested in decades of heavy marketing spend, but because it delivers a powerful brand experience that is founded in the brand’s purpose. Oreos would not be iconic if people didn’t think they tasted good. And no matter how aesthetically pleasing Apple’s devices are, Apple would not be iconic if its user interfaces were clunky. As Holt proposes, iconic brands transcend functional benefits, but that does not mean that they have ignored functional benefits (or that they can afford to ignore them in the future).Therefore, in terms of evaluating a brand’s iconic potential, I would first look at the brand’s ability to meet a specific functional need. A brand that can meet a need or gratify a desire in a unique and meaningful way has an opportunity to build the strong emotional attachment that is the cornerstone of iconicity. ‘Meaning is critical to successful and iconic brands.Iconic brands are not just distinctive; they are different in a way that is meaningful’ The “People’s Car”That Became an Icon In 1933, Ferdinand Porsche was charged by German chancellor Adolf Hitler to develop a car for the masses. Critical requirements in the specs for the Volkswagen(literally,“people’scar”inGerman)includedtheabilitytotransport two adults and three children at 100 km/h (62 mph) and a price that would make it affordable for average working people. Firstproducedin1938,theVolkswagenT1,laternicknamedtheBeetle,became one of the most iconic vehicles of all time. The unique design was denigrated by some, but after World War II, the reliable, economical, and affordable vehicle was exactly what the impoverished people of Germany required. Those same characteristics later appealed to hippies and others who were pursuing alternative lifestyles during the 1960s. The Beetle appeared in many movies and spawned a number of other nicknames, a sure sign of a brand that’s embedded in popular culture. The 1998 reintroduction of the Beetle was successful in large part because it tapped into those positive feelings while bringing the product up to date. The Power of Purpose In combination with its quirky looks, the Beetle’s ability to meet people’s transportation needs kindled the public affection that ultimately made the car an icon. Look behind the symbolism of most iconic brands and you will find someone with a vision of how a product could serve a specific need better than the existing alternatives. When a brand’s purpose or ideal resonates with a particular group of people, the brand moves one step closer to becoming iconic. Google originated as a research project by Larry Page and Sergey Brin, an effort to find a better way to rank the relevance of search results than simply counting the appearances of a search term on a page. By redefining the way people used the web, Page and Brin addressed the need to “organize the world’s information and make it universally accessible and useful.” The intersection of the widespread need to find information quickly with the better solution offered by Google, which included a simple and uncluttered user interface, resulted in Google becoming the success it is today. In his book Grow: How Ideals Power Growth and Profit at the World’s Greatest Companies (published in 2011), former Procter & Gamble CMO Jim Stengel describes the common feature he identified across dozens of highly successful brands: a brand ideal. A brand ideal is a purpose that goes beyond a product or service. It’s the higher-order benefit that the business provides to the world, the company’s most fundamental reason for being. Pursuing a brand ideal may not make your brand iconic, but it can be one step along that road—a step that, by offering people something that makes their lives better, will also motivate your workforce and help to ensure a healthy profit. Point of View WhatWeCanLearnFromIconicBrands
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    Five Principles forthe Everyday Brand Reaching iconic status is the Everest of the marketing world, and the vast majority of brands won’t reach its summit. That said, continually referencing and seeking to improve your brand’s performance against the following principles can only bring benefits. (Re)discover and stay true to your brand’s purpose Many brands are founded and built around a specific purpose or ideal that subsequently fades from sight as leaders lose track of what originally made the company special. In these cases, restoring the original focus can often turn a struggling brand around. But sometimes a company’s purpose has to change because the world around it has changed, as when 20 years ago IBM shifteditspurposefrommakingcomputersandchipstobuildingasmarterand more efficient planet.This sort of transformation requires a total commitment, as Louis Gerstner details in his book Who Says Elephants Can’t Dance? This commitment includes the willingness to make changes to align structure with strategy as well as ongoing reinforcement of the new purpose in both internal and external communications. Critically examine the experience your brand delivers You can have the noblest purpose in the world but still fail to deliver against people’s expectations. For example, environmentally responsible (“green”) brands want to ensure a better future for our planet, but all too often their functional performance fails to satisfy consumers, or their price is so high that trial is inhibited. One brand, however, stands out from other green brands in the way in which it not only meets but exceeds expectations. The household cleaning brand Method packs a one-two punch: Its nontoxic and sustainable products are just as effective as traditional cleaners, and Method’s unique design ethos enhances its products with packaging that is both distinctive and beautiful. These qualities could help Method become an iconic brand. Identify the iconic elements of your brand Iconicbrandsareinstantlyrecognizable.Howdopeoplerecognizeyourbrand? What are the specific cues that trigger recognition? Does your brand have a distinctive design? Which senses does your brand engage beyond just the visual? A brand with powerful sensory cues has an intrinsic advantage over others. Those cues ensure that positive associations come readily to mind and are linked to the right brand. Provided the same recognition cues are featured in broadcast and in-store communications, they allow the brand to realize synergies across marketing and sales channels. Balance the authentic with the contemporary Thepowerofabrand’sauthenticheritageisundeniable,butsotooisthepower of being in sync with popular culture. One of the biggest challenges for any brand is to stay contemporary without unnecessarily changing what the brand stands for. The brands that do this successfully manage to apply the stories and values of their heritage to contemporary circumstances. For example, Jack Daniel’s, an integral part of today’s pop culture, features its heritage in its advertisements with scenes of the whiskey being made. Company-sponsored musicians and concerts that bring people together outside of the bar also reflect the spirit and backcountry myths of the brand. Stay focused Faced with aggressive competition, fragmenting media, and ever faster feedback, brand marketers can be overly reactive. It may seem that doing something—even the wrong thing—is better than doing nothing. But if you keep in mind what it is that your brand stands for, you can avoid this trap. Knowing what is truly meaningful to your customers will help you choose the right actions. By understanding the interests, desires, and beliefs of their core consumers, brands can bring people together and facilitate unprecedented levels of consumer engagement, pride, and activism. Red Bull, for example, focuses all of its events on the idea of uplifting mind and body, offering both a spectacle and an unparalleled experience that is true to the brand’s purpose. Build on Sound Foundations Even if you never get to work with an iconic brand, as a marketer you can still apply the principles that underlie the success of iconic brands to help your own brand grow its financial value. But before you invest your time in trying to apply these principles, take a good hard look at your brand’s product. Powerful symbolism and impactful advertising can’t overcome a mediocre product experience. Assuming the product foundation is sound, you can then safely turn your attention to building a stronger brand. Make sure you understand your brand’s purpose, the character it presents to the world, and its unique set of sensory and symbolic properties. Then find ways to amplify what the brand stands for across all the potential touch points. The combination of a meaningfully different experience and distinctive brand assets will strengthen what your brand stands for in consumers’ minds, and as that concept becomes stronger and clearer, your brand will be more attractive to new users and inspire more loyalty among existing customers. TheRedBullenergydrinkhasbeenmarketedwithunique advertisingandawidevarietyofadrenaline-inspiredevents ‘You can have the noblest purpose in the world but still fail to deliver against people’s expectations’ Point of View WhatWeCanLearnFromIconicBrands
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    But not everythingdeclined. In the realm of social media, the number of Facebook users grew dramatically, blog readership increased, and a new phenomenon called Twitter exploded onto the scene. It’senoughtomakeyouthinkthatusingsocialmedia is the latest and best way to effectively build your brand. Many pundits suggest as much, and many brands seem to be buying into the idea. Research conducted in 2010 by Millward Brown and Dynamic Logic, in cooperation with the World Federation of Advertisers, found that almost all marketers surveyed (96 percent) expected to invest more time and money in social media in 2011. However, only a quarter (23 percent) said they were confident about the returns they get on these investments. I think this uncertainty is warranted. Those who manage brands should look before they leap. I believe that the race to utilize social media channels is representativeofthesamesortofirrationalexuberancethatledthestockmarket tounprecedentedheightsandallowedpeopletohavefaithinincomprehensible financial instruments. For many brands, large-scale investment in social media campaigns is likely to prove just as ill-advised and imprudent. In other words, I think we may be witnessing a social media bubble. The Power of Social Media There can be no denying that social media can be an incredible vehicle for change. For example, in 2009, a Facebook campaign prevented X Factor winner Joe McElderry from doing something the previous four X Factor winners had done—reach the top of the UK music charts. The campaign was started by husband-and-wife team Jon and Tracy Morter as a protest against X Factor’s monopoly of the Christmas chart.They encouraged people to buy“Killing in the Name,” a 17-year-old track by American rock band Rage Against the Machine (RATM).The news media picked up on the story, causing thousands of people to join the campaign; the number of fans on the RATM Facebook page exceeded 800,000 (more than Google, Pepsi, or Wal-Mart). What is more, those fans acted. In the crucial pre-Christmas week, “Killing in the Name” sold over 500,000 copies. While 19.5 million people viewed the X Factor finale and 6 million voted for McElderry, only 450,000 bought McElderry’s“The Climb.” What enabled the campaign to be successful? Global qualitative research conducted by Millward Brown Firefly has highlighted several things that drive people to use social media. People are looking for a sense of connectedness and belonging, for an entertaining diversion, and for a sense of control. The issues of control and belonging seem central to the RATM campaign. The effort had the authenticity borne of its grass roots. It was founded by real people advancing a real agenda, and that agenda was one that tapped into a current concern—the suspicion that“big business”was manipulating the public psyche for its own ends. The same concern helped ignite the Twitter storm centered on the phone- hacking scandal at the UK tabloid News of the World. Shortly thereafter, the 168-year-old paper closed. Clearly there is power in social media—but can Facebook or Twitter empower a consumer brand in a constructive way as well as they can give voice to social outrage? The Characteristics of Successful Facebook Brands I undertook an analysis to address that question. I identified 12 brands that have been held up for their effective use of social media: Southwest, Honda,VW, McDonald’s,PizzaHut,Subway,KFC,Dunkin’ Donuts, Krispy Kreme, Starbucks, Coca- Cola, and Red Bull. I related the number of fans these brands had on their Facebook pages (all had more than 250,000) to data from Millward Brown’s BrandZ database (specifically, U.S. data from 2009). I then compared the results for these successful social media brands with other brands in the same product categories. My first observation was that the five different product categories attracted very different numbers of fans. On average, the soft drink brands included in our BrandZ study had over 16,000 fans each while airlines had barely 1,000. But not everything declined. In the realm of social media, the number of Facebook users grew dramatically, blog readership increased, and a new phenomenon called Twitter exploded onto the scene. It’senoughtomakeyouthinkthatusingsocialmedia is the latest and best way to effectively build your brand. Many pundits suggest as much, and many brands seem to be buying into the idea. Research conducted in 2010 by Millward Brown and Dynamic Logic, in cooperation with the World Federation of Advertisers, found that almost all marketers surveyed (96 percent) expected to invest more time and money in social media in 2011. However, only a quarter (23 percent) said they were confident about the returns they get on these investments. I think this uncertainty is warranted. Those who manage brands should look before they leap. I believe that the race to utilize social media channels is representativeofthesamesortofirrationalexuberancethatledthestockmarket tounprecedentedheightsandallowedpeopletohavefaithinincomprehensible financial instruments. For many brands, large-scale investment in social media campaigns is likely to prove just as ill-advised and imprudent. In other words, I think we may be witnessing a social media bubble. The Power of Social Media There can be no denying that social media can be an incredible vehicle for change. For example, in 2009, a Facebook campaign prevented X Factor winner Joe McElderry from doing something the previous four X Factor winners had done—reach the top of the UK music charts. The campaign was started by husband-and-wife team Jon and Tracy Morter as a protest against X Factor’s monopoly of the Christmas chart.They encouraged people to buy“Killing in the Name,” a 17-year-old track by American rock band Rage Against the Machine (RATM).The news media picked up on the story, causing thousands of people to join the campaign; the number of fans on the RATM Facebook page exceeded 800,000 (more than Google, Pepsi, or Wal-Mart). What is more, those fans acted. In the crucial pre-Christmas week, “Killing in the Name” sold over 500,000 copies. While 19.5 million people viewed the X Factor finale and 6 million voted for McElderry, only 450,000 bought McElderry’s“The Climb.” What enabled the campaign to be successful? Global qualitative research conducted by Millward Brown Firefly has highlighted several things that drive people to use social media. People are looking for a sense of connectedness and belonging, for an entertaining diversion, and for a sense of control. The issues of control and belonging seem central to the RATM campaign. The effort had the authenticity borne of its grass roots. It was founded by real people advancing a real agenda, and that agenda was one that tapped into a current concern—the suspicion that“big business”was manipulating the public psyche for its own ends. The same concern helped ignite the Twitter storm centered on the phone- hacking scandal at the UK tabloid News of the World. Shortly thereafter, the 168-year-old paper closed. Clearly there is power in social media—but can Facebook or Twitter empower a consumer brand in a constructive way as well as they can give voice to social outrage? The Characteristics of Successful Facebook Brands I undertook an analysis to address that question. I identified 12 brands that have been held up for their effective use of social media: Southwest, Honda,VW, McDonald’s,PizzaHut,Subway,KFC,Dunkin’ Donuts, Krispy Kreme, Starbucks, Coca- Cola, and Red Bull. I related the number of fans these brands had on their Facebook pages (all had more than 250,000) to data from Millward Brown’s BrandZ database (specifically, U.S. data from 2009). I then compared the results for these successful social media brands with other brands in the same product categories. My first observation was that the five different product categories attracted very different numbers of fans. On average, the soft drink brands included in our BrandZ study had over 16,000 fans each while airlines had barely 1,000. I believe this is directly related to the number of people who are actively involved with a category on a regular basis.The level of satisfaction with brands in a category also seemed to correspond with the number of fans the category attracted. Only 18 percent of U.S. air travelers are satisfied with the brands available to them, while 56 percent of soft drink buyers claim to be totally satisfied with their brand choices. In using social media, people are looking for a sense of connectedness and belonging, for an entertaining diversion, and for a sense of control Nigel Hollis Chief Global Analyst Millward Brown Point of View ‘XFactor’winner JoeMcElderry The last few years have seen some massive changes in our world.The financial bubble that reached its peak in 2007 popped, leaving us to enjoy what has been dubbed“The Great Recession.”The Dow Jones plummeted, along with consumer confidence.The subsequent road to recovery has proved to be long and uncertain. Socialmedia:fansandfollowers areanend,notameans
  • 21.
    Figure 1 Successful socialmedia brands tend to be stronger brands Presence Relevance Performance Advantage Bonding Successful Brands Other Brands 81 66 53 44 54 43 37 26 11 2 My next observation was that in most categories, one or two brands attracted the lion’s share of fans. Those brands are not necessarily the biggest or the oldest, but rather the ones with a distinctive positioning that sets them apart from competitors. For example, in the case of domestic U.S. airlines, Southwest is the dominant brand, followed by Virgin America, a newcomer to the United States. I believe that Virgin’s commitment to excellent service and customer satisfaction and its obvious commitment to using social media are whatenabledittodrawmorefansthan American Airlines, United, or Delta. My final observation was that the playing field did not appear to be level for brands competing on Facebook. It seemed easier for some brands to gain traction simply due to their product category and their positioning. But there is an even larger obstacle to be overcome by many brands. Brands that are already big and successful start with a major advantage in social media. Using the Millward Brown Brand Pyramid, I compared the composite brand equity of the two groups of brands (see Figure 1). The successful social media brands started with 50 percent more Presence (familiarity with what the brand stands for) and finished with five times as much Bonding (the strongest measure of attitudinal loyalty).They had an average of 1.6 million fans each, while the other brands had an average of just 140,000 fans each. So the more loyal customers you have, the more fans you tend to have on Facebook. Mass Exposure Is an Important Catalystto Social Media Success One final element must be considered by brands thinking of marketing through social media: the need for mass media coverage. Most notable social media campaigns have relied on the mass media to gain critical momentum. Analysis of Twitter by HP’s Data Central finds that mainstream media outlets act as feeders of the most popular trends, and regular Twitter users then act as trend amplifiers. The Rage Against the Machine campaign would likely have languished unnoticed by the vast majority of people if the traditional media had not picked it up and publicized it.The same is true of some of the classics of viral marketing: Burger King’s“Subservient Chicken”benefited from widespread media support, and Dove’s “Evolution” was boosted by a strong PR campaign. On its own, Twitter did not kill the News of the World, but it did help create enough noise to pressure advertisers into pulling their support from the paper. Integration of mass media and social media helps transcend the disparate personal connections that drive social media in order to achieve critical mass. In 2010, the meerkat Aleksandr Orlov was created to star in a TV campaign for the UK financial comparison site comparethemarket.com. As of August 2011, Aleksandr had close to 800,000 fans on the Facebook page that was created as partoftheadcampaign.Thecombinationoftightlyintegratedonlineandoffline marketing heightened interest in the brand, drove traffic to comparethemarket. com, and increased quotes by 45 percent compared to the previous year. Beyond Facebook While Facebook is the biggest social media network, it is not a homogeneous community, nor is it the only channel through which brands can connect with consumers.Infact,MillwardBrownidentifieseightdifferenttypesofsocialmedia: pure plays, blogs, syndication, peer-to-peer (P2P), wikis and collaboratives, open source, tagging and rating, and consumer reviews. Each type serves different purposes and audiences. Among the pure-play vehicles, a low-reach, high-engagement medium such as Twitter offers the chance to make that all- important ongoing and personal connection. But Twitter users aren’t using the channel to be informed about brands. They are using it because they want to hear from people. Brands with social media savvy know this and often designate a lead tweeter to represent the company and engage people. Tony Hsieh, the CEO of online shoe retailer Zappos, is the archetypal corporate tweeter. With his tweets, which cover a wide range of subject matter—from getting kids to eat vegetables to entrepeneurship to the secret of living the good life—he engages people and gives them a sense of personal connection with Zappos. Socialmedia:fansandfollowersareanend,notameans Point of View It is the big brands that get the most out of Facebook.The more loyal customers you have, the more fans you tend to have on Facebook
  • 22.
    Fans and FollowersHave Their Own Agendas Dynamic Logic’s AdReaction 2009 study found that while 59 percent of Internet users are actively engaged with social networking sites, only 13 percent of those social media users actively follow or keep up with brands via social networks. Those that do follow brands do so in an average of three categories, and they do so to gain access to information, discounts, and giveaways. This presents a challenge for a brand. To pander to a small percentage of your target with discounts and added- value giveaways can undermine your brand’s status and profitability; what you should focus on is engaging people with new information and ideas that improve the customer experience. Build a Strong Brand and Fans Will Follow Because people use social media to connect with people and brands that they know, respect, and admire, the social media make a great channel for engaging existing customers. But fans and followers are not a means to building a brand; rather, they are an end. Social media can’t help build brands without the other ingredients that make brands strong: an effective business model, a great brand experience, clarity of positioning, and the ability to disrupt the status quo in a product category. As I stated in my Point ofView“Make Friends, Don’t PitchThem,”creating a strong presence in social media is a good vehicle for confirming a brand’s benefits and validating its commitment to its users. However, any marketers still considering how to construct a social media strategy that will build buzz, saliency, and a deeperengagementwithloyalbrandadvocateswoulddowelltoaskthemselves the following questions: Integration of mass media and social media helps transcend the disparate personal connections that drive social media in order to achieve critical mass Whatever your chosen strategy is, remember:There is no substitute for creativity and consistency. Find an idea that will resonate with your target audience and is in keeping with your brand’s positioning. Promote what you do widely, in whatever ways are most appropriate. Then listen to the response and respond in turn. Do people care enough about my brand and category to engage with it? If not, maybe social media is not a priority for you. What types of social media sites offer the most potential?What would be the best bet—a pure play or a blog? An active presence on multiple sites might be necessary to engage even a small proportion of existing customers. What value can your brand offer beyond freebies and discounts? Games, puzzles, and competitions were popular means to engage people with brands long before the advent of social media. Remember:While social media may be a new communication channel, the motivations, interests, and desires of the people who use it are not new, but the same as they have always been. How do you sustain the initial engagement beyond a simple sign of affinity? Even large, successful brands must continually find new ways to engage fans that are consistent with their basic appeal; otherwise the novelty of“fandom”will quickly wear off.The research conducted with theWorld Federation of Advertisers found trust and transparency to be important to ongoing engagement, while variation, innovation, and a reasonable frequency of posting keep fans coming back for more. Socialmedia:fansandfollowersareanend,notameans Point of View
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    By combining keyoutputs of BrandZ and CharacterZ and examining them in light of Geert Hofstede’s model of the dimensions of culture, we can identify the brand characteristics that are most likelytoensuresuccessindifferentregions.Marketers who hope to achieve global success for their brands must take heed of these findings and use them to modulate the tenor of their brands’communication across local and global campaigns. What We Mean by Brand Personality When we speak of a brand’s positioning, we are describing the things that differentiate one brand from others.When we speak of a brand’s personality, we are describing the way a brand expresses and represents itself. In BrandZ, we have asked over 500,000 people to describe brands using a set of 24 adjectiveschosentocoverawiderangeofpersonality characteristics. We then assigned each brand to one of10archetypesaccordingtoitsdominantcharacter. Developed using semiotics and both qualitative and quantitative research, these archetypes allow us to reduce a vast array of brand personalities to a manageable number of well- defined and recognizable characters. Some global brands are characterized differently in different parts of the world. For example, in Italy, Spain, and the UK, the Apple iPhone is viewed as a Seductress,butinAustraliaitisaJoker,andinJapan,aDreamer.Thisdiscrepancy highlights the many factors that influence a brand’s personality. Not only do consumers experience a brand’s marketing activities in light of their own values, traditions, and circumstances, but they also perceive personality traits through the lens of their cultural conditioning. Therefore it is imperative that marketers pay attention to the personalities their brands project; few characters have the power to transcend all cultures. Figure 1: CharacterZ Attributes and Archetypes Brand Strength Varies with Brand Personality In BrandZ, one of the key measures of a brand’s strength is Bonding. Bonding is the highest level of attitudinal loyalty; when people are bonded to a brand, they feelthebrandiscloser,moremeaningfullydifferent,andhencemorevaluableto them.When we correlated Bonding with our set of brand personality attributes, we found a range of significant results—from high positive correlations to surprisingnegativecorrelationsthatassociatedpersonalitytraitswithweakness rather than strength. Two Global Success Traits Two of the 24 words used to describe personality correlated with Bonding significantly more than all the others: desirable and trustworthy. Though both these words had strong correlations everywhere, their importance relative to one another did vary in some markets, as illustrated in Figure 2. Desirability, which embodies qualities such as allure, status, and exclusivity, is particularly associated with aspirational brands that have emotional resonance; it is a notably strong driver of Bonding in Latin markets such as Brazil, Mexico, and Spain. Trustworthiness, the attribute which underpins a consumer’s belief that a brand will deliver consistent quality, is an especially strong driver of Bonding in India, Russia, and Korea. The Role of Other Personality Traits Some words, such as innocent and rebellious, tend not to be associated with the most successful brands. For example, the word innocent is often used as a descriptor for brands that are neither well known nor well defined, while the most successful brands (according to Bonding) tend to have strong clarity of associations. Similarly, rebellious brands are more likely to be seen as challengers than as leaders. In Taiwan, being seen as too straightforwardcannegativelyaffectBonding, suggesting that in that country, cleverness is appreciated by consumers. Table 1 shows the countries for which each of these traits is negatively correlated with Bonding. InTaiwan, being too straightforward can negatively affect Bonding, but cleverness is appreciated by consumers Graham Staplehurst Group Account Director Brands & Communication Millward Brown Suthapa Charoenwongse Associate Account Director Millward Brown Bangkok Innocent Sweden, Spain, Mexico, Australia, Germany, Italy, Netherlands, Korea, USA Different Thailand, Netherlands, Sweden, Australia, Germany, USA, Canada, UK, Italy, Japan Rebellious China, Taiwan, Korea, Japan Straightforward Taiwan, Korea Table 1: Negative Correlations with Bonding Point of View For many years, researchers have been using the concept of brand personality to help describe brands and understand how they relate to consumers. More recently, using data fromWPP’s BrandZ study, we have looked at brand personality from a cross-cultural perspective and demonstrated that there is a relationship between the way brands express themselves in different countries and the strength of the consumer relationships they generate. WhyBrandPersonalityMatters: AligningYourBrandtoCultural DriversofSuccess
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    Itwassurprisingtofindthatdifferentpersonalitieshadanegativecorrelationwith Bonding in somecountries, since the role of marketing is to create difference for brands. But evidently, a different personality is not the same as a meaningfully differentbrandexperience.Beingseenasdifferentinpersonalitytermssuggests a lack of identification with consumers and some social or emotional distance from them. The brands that are perceived this way fit less comfortably into a market. In the same way that the importance of trustworthiness and desirability varies from one country to another, the degree to which other traits drive Bonding also varies across markets. The personality traits (other than trustworthy and desirable) that your brand will find most useful in different markets are shown in Figure 2, below the country names. For example, friendly brands are more successful in Brazil and India, wise brands do well in China and the United States, and brands that are creative are especially well received in Japan, Taiwan, and Korea. Cultural Dimensions Many of the differences we have observed in how people appreciate brands’ personalities can be explained through the cultural dimensions theory put forth by Geert Hofstede, a researcher recognized internationally for having developed the first empirical model to describe and differentiate cultures. His model includes the following five dimensions: • Power Distance: The degree to which members of a society accept and expectthatpowerisdistributedunequally.Runsfromhigh(differenceaccepted) to low. • Individualism: The degree to which societies believe people share an obligation for the care of those outside of their immediate families. Runs from high (obligations to close family only) to low. • Masculinity: The degree to which a society emphasizes the value of achievement, heroism, assertiveness, and material rewards for success. Runs from high (these values are important) to low. • Uncertainty Avoidance: The degree to which the members of a society feel comfortable with uncertainty and ambiguity. Runs from high (where people need clarity and rules) to low. • Long-term Orientation: The degree to which a society believes that truth depends on situation, context, and time. Where long-term orientation is high, people adapt traditions and are more likely to save, invest, and persevere. Three Countries with Contrasting Cultural Preferences Russia,China,andtheUKvarywidelyintermsofHofstede’sdimensions(seeTable 2).RussiaandChinabothscorehighonPowerDistanceandlowonIndividualism, but they are on opposite ends of the scale on Uncertainty Avoidance (where Russia is high and China is low). The culture in Russia favors brands that are assertive and in control, while also appreciating brands with a friendly and caring nature. In China, respect for authority, coupled with a long-term orientation, enables brands with wise and trustworthy personalities to dominate. Brands with assertive, rebellious, or playful traits are less likely to be widely accepted by society, although emerging generations of younger and more affluent consumers may change this. In the UK, where there is an emphasis on individualism, tolerance, and respect for equality (evidenced by the low Power Distance score), we see fewer strong associations between any particular personality trait and brand success. The two traits with the most consistent relationship with strong brands are friendly and generous. Implications for Global Marketers While global communications and other marketing levers can help ensure that a brand is positioned in a consistent way around the world, a single tone of voice is unlikely to succeed in engaging consumers across varied cultures. Marketers needtounderstandtheculturalcontextinwhichtheirbrandcommunicates;they mayfindthattheyneedtovarynotonlywhattheysay,buthowtheysayit.Though every brand will face a unique situation due to a number of factors, including product category and country of origin, the following recommendations apply to all brands: 1. Personality can differentiate.The strongest brands are those with the most well-defined personalities. These brands have differentiated themselves by the way they relate to consumers as much as by functional or other aspects. 2.Sometraitsarealwaysgoodtohave.Makesureyourbrand’scommunication clearly shouts either desirable or trustworthy. Or, like BMW, DoCoMo, El Cortes Inglés, or Emporio Armani, you may choose to emphasize both. 3. Give your brand a global personality check. Consider the culture in your brand’s country of origin and that of the country to which you’re marketing. Use BrandZ and CharacterZ to identify the brands that fit well in the specific cultures that are most important to you. Brand Personality Matters Brand managers and advertising planners have long understood that their brands are differentiated by the way they address their customers. Our analysis goes beyond this to show that emphasizing particular personality traits can strengthen or undermine a brand’s competitive position. If your brand has a particularly strong personality, you may need to adjust its tone of voice to match local cultural dynamics. Smart marketing practitioners will use research to understand the role that their brands’personalities play in building consumer relationships, and will apply that learning to maximize brand appeal around the world. Creative Assertive Straightforward MEXICO Creative Assertive Straightforward Friendly BRAZIL Creative Assertive Brave SPAIN In control Wise Generous USA In control Creative CANADA Friendly Generous UK In control GERMANY Assertive Idealistic Generous SWEDEN Friendly Adventurous Caring INDIA Caring Wise Straightforward THAILAND In control Generous AUSTRALIA Creative TAIWAN Creative Wise Kind KOREA Creative Fun JAPAN Wise Caring Creative Straightforward Brave CHINA In control Kind Creative ITALY Straightforward Friendly NETHERLANDS Assertive In control Friendly Caring RUSSIA In control Assertive Creative FRANCE Desirable more important Both equally important + other traits in order of importance Trustworthy more important Figure 2: Personality Traits Associated with the Most Successful Brands High Low Russia Power Distance, Uncertainty Avoidance Individualism China Long-term, Orientation, Power, Distance Uncertainty, Avoidance, Individualism UK Individualism, Masculinity Power Distance, Long-term, Orientation Table 2: Selected Dimensions for Russia, China, and the UK Point of View WhyBrandPersonalityMatters:AligningYour BrandtoCulturalDriversofSuccess
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    Whiletheyaregrowingwellathome,China’sdeveloping brandsfaceaverydifferentenvironmentoutsideofChina. In developed markets,these brands need to sharply increase their levels of awareness and penetration. But beyond that, to actually achieve profitable growth, Chinese brands need to provide consumers with an experience that is meaningfully different. As we have seen in previous years with the BrandZ Global Top 100, the share prices of strong brands greatly outperform the average. This year’s China Top 50 ranking provides another example of the value of this“brand gap.” (See Figure 1.) While the MSCI China Index registered a 6 percent loss over the past 15 months, the China Top 50 brands were up 20 percent. The New China: Fertile Ground for Brands December 2011 marked the tenth anniversary of China joining theWorldTrade Organization, and some observers say that a hundred years’worth of societal and economic transformation has occurred in the decade since. Nearly 300 millionnewmiddle-classconsumershaveemergedtocreateagrowingmarket that has allowed new brands to become established extraordinarily quickly. Six of the brands in the Top 50, collectively worth US$50 billion, didn’t even exist 10 years ago, while more than half the brands in the Top 50 were created after 1990. Some observations about this year’s ranking reveal the dynamic environment in which Chinese brands are thriving. Privately held brands are growing TheentrepreneurialnatureofChinesebusinessshowsupintherelativegrowth in value of privately owned brands. These brands make up the majority (two- thirds) of the Top 50, and they grew 27 percent year-on-year, compared to a mere 13 percent for state-owned enterprises (SOEs). However, the privately held brands have a considerable way to go to match the dominance of the SOEs, which currently account for 70 percent of the value of the Top 50 brands and occupy eight of the top 10 positions in the ranking. (See Table 1.) Point of View 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% Jul ‘10 oct ‘10 jan ‘11 apr ‘11 jul ‘11 Figure 1: BrandZ™ China Portfolio vs. MSCI China (July 2010 to Sept 2011) +20%+20% –6%–6% Source: Bloomberg: MBOptimor London Analysis BrandZ™ Market BrandZ™ Portfolio; Top 50 Chinese Brands MSCI China index PekingTan R&D Director, Greater China, Millward Brown PeterWalshe Global BrandZ Director Millward Brown Brand Field Value (USD Millions) % Change from 2010 1 China Mobile Telecom $53,607 -4 2 ICBC Financial $43,910 +15 3 China Construction Bank Financial $21,981 +1 4 Bank of China Financial $18,643 -17 5 Agricultural Bank of China Fincancial $17,329 +5 6 Baidu Search Engine $16,256 +67 7 China Life Insurance $15,253 -17 8 Sinopec Oil & Gas $13,791 N/A 9 PetroChina Oli & Gas $13,755 -3 10 Tencent Internet Service Portal $12,624 +3 Table 1: The China Top 50 – First 10 Brands In contrast to the top 10 brands overall, the Top 10 Risers (the brands with the biggestincreasesinvalue)—arenearlyallprivate.(SeeTable2.)WebportalSina heads this list with a dramatic increase of 244 percent over last year. Search engine Baidu, though it grew by a smaller percentage (67 percent), registered the biggest increase in actual dollars. It added $6.5 billion to its value—more than the combined values of the bottom 12 brands in the ranking. Top risers reflect improved living standards The fastest-growing brands come from categories that have benefited from increases in discretionary spending. In addition to the two Internet brands, the Top 10 Risers include three alcohol brands, two herbal remedy producers, two food brands, and a manufacturer of air conditioners. As Chinese brands have continued to steadily increase in value, the proportion of earnings that are driven by brand and consumer preference has also edged up. In comparing the Top 50 rankings from 2010 and 2011, we observe that 16 brands improved their brand contribution scores while none declined. Thebrandcontributionscoredescribestheextenttowhich“brand,”asopposed to factors like price and location, is responsible for earnings. The increase in these scores is a reflection of the fact that Chinese consumers are becoming more informed and discerning about brands. Exposure to multi-national brands has raised their expectations of quality and value, and Chinese brands have answered this challenge with some real achievements in brand building: improvements in innovation, marketing, image building, and the ability to keep pace with rapidly changing consumer expectations. Brand Field Value (USD Millions) % Increase from 2010 1 Sina Portals/E-Commerce $1,905 244 2 Fulinmen Cooking Oil $380 138 3 Tong RenTang Pharma $1,026 89 4 ChangYu Alcohol $3,223 77 5 Baldu Portals/E-Commerce $16,256 67 6 Mengniu Food & Dairy $3,446 66 7 Wu LianYe Alcohol $4,037 65 8 Gree Air Conditioning $1,632 58 9 Moutai Alcohol $9,129 58 10 Yunnan Baiyao Pharma $1,897 49 Table 2: The China Top 50 – Top 10 Risers The recently released ChinaTop 50 ranking once again confirms the value of a strong brand and highlights the remarkable growth of China’s economy over the past decade. But it also provides an opportunity to define some of the specific challenges currently facing Chinese brands. China’sTop50: MuchProgressButMoretoDo
  • 28.
    Outside of China:Chinese Brands Lack Roots Though they have made great strides in China, most Chinese brands are still relatively unknown outside of China. Across the Top 50, foreign earnings average less than 5 percent. Millward Brown’s “Going Global” study helps to put those earnings figures into perspective. The staggering finding from that project, which investigated knowledge of Chinese brands in several key markets outside of China (including India, Malaysia, Australia, South Africa, the UK, and the United States), was that, overall, 83 percent of respondents could not name a single Chinese brand. Among the few brands that did have name recognition was PC maker Lenovo, unusual among Chinese brands in that 50 percent of its sales come from abroad.Anotherrelativelywell-knownChinesebrandwastheappliancemaker Haier. Respondents also had some knowledge of Tsingtao beer and Li-Ning, the sports shoes and apparel brand. So it seems that the first challenge facing China’s brands as they venture into global territory is to gain familiarity. However, to compete effectively against established brands in well-developed markets, they also need to establish a meaningful point of difference. How Difference Drives Value Growth Analysis of the BrandZ database, both in China and elsewhere, confirms that those brands that offer a meaningful difference are the ones most likely to achieve profitable growth. Offering an experience that is meaningfully different can enable a brand to support a price premium or to capture a higher proportion of sales at a price that is on par with the market. Figure 2 shows an analysis that relates people’s perceptions of the qualities of “meaning”and“difference”tobrandcontributionscores.InBrandZ,wemeasure difference directly, with the attribute “different than others.”We captured the concept of meaning through a combination of the attributes ”high opinion” and “appeal.” We took the 1,172 Chinese brands measured by BrandZ from 2008 to 2011, split the brands into three groups (according to tertiles) on both difference and our composite measure of meaning, and then calculated the average brand contribution scores for each of the resulting nine groups. Thethreeredboxesintheupperrightcontaintheindexesforbrandsthat score high on difference or meaning or both. Note that these numbers are far higher than those in the other boxes.The brands that are high on both difference and meaning index at 143; thus they have an average brand contribution score that is 43 percent higher than average. The brands that are high on meaning and in the middle group on difference index at 130, while those that are high on difference but in the middle third on meaning also index much higher than average at 121. Conversely, being in the bottom third of brands on either or both dimensions leads to significantly lower scores on brand contribution. The group that is low on both has an index of 55. Note that even the brands in the top third on difference had relatively low brand contribution scores when they scored in the lowest third on meaning, indexing at 85. Point of View 85 121 143 73 100 130 55 83 104 High Medium Low Difference Low Medium High Meaning Figure 2: The Impact of“Brand”on Sales Average Brand contribution Scores (Indexed) BrandZ™ China 779 brands 2009-2011 (Average = 100) 85 121* 143* 73 100 130* 55 83 104 High Medium Low Difference Low Medium High Meaning Figure 3: Distribution of China Top 50 on Meaning and Difference Percent of brands in each group *50% of the Top 50 are strong on one or both elements China’sTop50:MuchProgressButMoretoDo
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    When we narrowour focus from all Chinese brands to the China Top 50, we see another example of Chinese brands moving in the right direction. The average brand contribution score for the China Top 50 improved from 118 in 2010 to 124 in 2011. This narrows the gap between the China Top 50 and the Global Top 100, for which the average brand contribution score in 2011 was 129. Another difference we observe between the China Top 50 and the Global Top 100 is in the distribution of brands across the nine boxes. Only half the China Top 50 brands appear in one of the three upper-right-hand (red) boxes, compared to 70 percent of the Global Top 100 most valuable brands. So even though Chinese brands have made great gains, they can still improve on creating differentiation and meaning. Some Meaningfully Different China Success Stories A meaningful difference is one that is considered to be important—one that provides a brand with a meaning that is likely to influence brand choice. As Nigel Hollis said in his January 2012 POV“Not Just Different but Meaningfully Different,”brand meaning can originate from many different sources: heritage, function, style, and price are a few of the possibilities. Therefore, a meaningful difference might be a tangible product-oriented quality, or it might be an intangible emotional benefit.Whetheritistangibleorintangible,ameaningful difference is a difference that is significant and influential. Some of the brands in the China Top 50, most notably those among the Top 10 Risers, have done a great job of establishing a meaningful difference and should provide inspiration to other developing Chinese brands. Sina (No. 25 overall, No. 1 among the Top 10 Risers) has distinguished itself through innovation by creating a micro-blogging site, Sina Weibo. With 227 million users posting 86 million messages each day, Sina Weibo offers something unique and valuable to consumers and has helped rejuvenate the Sina brand. Heritage can be another key differentiator, and Chinese brands have a rich and unique tradition on which to draw. Tong Ren Tang (No. 36 overall, No.3 among top risers) is a traditional Chinese medicine manufacturer that was established over 340 years ago. Herbal remedy producer Yunnan Baiyao (26/10) leverages Chinese medicine by incorporating the ancient baiyao powder, which stops bleeding, into modern products such as toothpaste, bandages, and skin-care creams. Trust is a critical issue, particularly for food brands, because of a number of qualityissuesandscandalsinrecentdecades.BothFulinmen(47/2),theleading cooking oil and rice producer, and Mengniu (18/6), a maker of dairy products, have benefitted from clear communication of their healthy provenance. Fulinmen has projected the caring and protective image of a wise mother, while Mengniu has connected the consumption of dairy products with the strength of the Chinese people. Outlook for the Future The BrandZTM China Top 50 brands 2011, collectively worth US$325 billion at the time of the study, testified to the fact that strong branding is the result of providing a great product experience and developing a trusted relationship with customers. But even though Chinese brands have made remarkable progressoverthepast10years,theyhavemoreworktodoiftheyaretocompete effectively in global markets. They must increase their strength in their home market by continuing to build perceptions of meaningful difference in the face of increased competition from multinational brands. Outside of China, they need to raise awareness and communicate their meaningful difference at the same time, and in so doing they must take into account the varying mindsets and attitudes toward brands that exist in other countries. A one- size-fits-all marketing plan will not be effective. However, the China Top 50 ranking showcases a number of Chinese brands that are acquiring and honing the skills that will make them successful overseas. Point of View China’sTop50:MuchProgressButMoretoDo
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    You may havesome trinket or memento on your desk as well—something that doesn’t have any practical purpose and appears insignificant to others, but is meaningful to you. Your unique history with the object makes it special. I think the fact that we can form such attachments with relatively inconsequential objects illustrates a too-often-overlooked concept that is important for brands and brand marketing: the concept of meaningful difference. A presentation I saw recently, created by the agency BBH, also focuses on the concept of difference. Thepresentationproclaimedthatthe“classic”communicationsmodel,inwhich communication that is relevant, different, and motivating leads to behavioral change, has given way to the “insight” model, in which changes in behavior are effected by communication that is simply relevant and motivating. “We have forgotten the power of difference,” BBH asserted. I am afraid that they are right—and that this amnesia applies to both communication and branding. Many marketers today value relevance to the exclusion of difference— and to the detriment of their brands. Yet those who first demoted “difference” from its place of honor in communications may have done so for the right reasons. Theymayhaverealizedthatbeingdifferent for the sake of being different was of little value. But the mistake they made was to throw out difference altogether and switch their emphasis to relevance. Successful brands are both relevant and different—but they are also more than that. Successful brands are meaningfully different. So what’s a meaningful difference? I think of it this way. We humans find it impossible to judge anything in isolation. We tend to compare things to very close alternatives. So a difference, a factor that distinguishes one item from another, gets our attention. And while a difference may be apparent to most people, it won’t seem important to everyone. A meaningful difference is one that is considered to be important—one that provides a brand with a meaning that is likely to have an influence on a person’s brand choice. Brand meaning can originate from a multitude of sources. It could come from your personal history with a brand; for example, you might use the same brand of detergent that your mother used. Or it could come from functional characteristics; you might really like the intuitive interface of that tablet computer. You might be attached to your car because you think it looks hot or because it is economical and saves you money. Or a brand’s meaning for you might simply be that it is familiar when others are not. Meaning can be functional and tangible or emotional and intangible or all of the above. Meaning is in the eye of the beholder. Nigel Hollis SVP and Chief Global Analyst, Millward Brown Point of View Many marketers today value relevance to the exclusion of difference - and to the detriment of their brands For many years, a smooth green stone has sat on my desk. It’s a piece of serpentine that I was given when, as a small child, I visited an artist’s workshop in Scotland.Truthfully, it’s a pretty unremarkable rock, and I doubt that anyone else would find it interesting, but it means something to me. NotJustDifferentbut MeaningfullyDifferent
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    The Value ofMeaningful Difference Relevance is important. Millward Brown’s BrandDynamics™ equity model shows that those who find a brand relevant—that is, who admit that the brand offers something they want or need at an acceptable price—are four times more likely to purchase it than those who don’t. But because, on average, across a range of categories, people find as many as six brands to be relevant, they still need additional reasons to choose among them. When people go beyond relevance to “bond” with a brand (“bonding” is the strongest degree of consumer affinity defined by BrandDynamics), they believe that the brand satisfies their needs better than others in the category. People who bond with a brand are over five times as likely to buy the brand as those who simply consider it relevant. What drives people to bonding? Recent analysis suggests that “meaningful difference” is a critical factor. People who cite three key advantages of a brand—that it is different, that it is more appealing than others, and that they have a higher opinion of it—tend to have the highest predicted probability of purchase. In other words, they consider the brand to be different in a“good”or “meaningful”way.The same three attributes are an integral part ofVoltage 2.0, a metric that has been proven to relate to both a brand’s ability to command a price premium and the likelihood of future growth in market share. How Can Something So Small Be So Important? Inmyrecentpointofview“ItIsNotaChoice:BrandsShouldSeekDifferentiation and Distinctiveness,” I cited a statistic from our BrandZ database about “difference.”I said,“Among those that consider a brand acceptable, an average of 18 percent agreed that it was different from others … (Note: At this level, ‘different from others’ is one of the most discriminating attributes within our data set.)” Several people have commented that an average of 18 percent does not seem very high. And it’s unfortunately true that one of the heuristics by which we operate as humans is that big numbers seem more important than small ones. But actually, the fact that the majority of brands are not considered to be very different from each other makes “different” a very discriminating element. “Different” is not a generic, applies-to-every-brand-in-the-category attribute. It is not an insipid, I-want-everyone-to-buy-me attribute. Instead, it is a characteristic that sets the brand apart and gives it the ability to attract new buyers while commanding a price premium. What Is a Meaningful Difference? What really constitutes a meaningful difference, especially in developed markets where most brands are functionally equivalent? As I said earlier, a meaningful difference is one that is significant and influential. It might be a tangible product-oriented difference, or it might be an emotional and intangible difference. A difference that may seem trivial to some people may, for others, add that extra something that makes them choose that brand over others. A brand like Coca-Cola is unlikely to change its formulation, particularly after the debacle of New Coke. Instead, Coke works single-mindedly to create intangible differentiation through creative campaigns that focus people’s attention on the brand’s reason for being. The “Open Happiness” advertising, “My Coke”Rewards, and the brand’s engagement with social media all remind people of what Coke stands for. They layer new and renewed meaning onto a long-established and dominant brand. As a result of this communication, ardent fans continue to believe that there is simply no substitute for their favorite soft drink. This points up the roles that “difference” and “relevance” play in determining people’s conscious responses to advertising. Perceived relevance is a fundamentalfactorindeterminingwhetherornotpeoplefindanadpersuasive, but it is not the only one. When people say that an ad has made them more likely to buy a brand, they are also likely to say that the message was relevant, new, credible, and different. Newness—that is, new news—is important in changing people’s minds about a brand, while credibility and difference boost an ad’s motivational potential. Point of View Coca-colaworkssingle-mindedlytocreate differentiationthroughcreativecampaigns NotJustDifferentbutMeaningfullyDifferent
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    This said, itis critical to note that persuasion is just one route to sales success, and it tends to be a one-off event. Recent analysis conducted by my colleagues DominicTwose and PollyWyn Jones suggests that highly creative ads can have a more enduring effect than ads that are more persuasive but less engaging. Building on previous analysis that demonstrated the connection between sales effectiveness (both long- and short-term) and an ad’s ability to generate brand-linked memorability (which we measure using the Awareness Index), Polly and Dominic studied ads that were recognized with IPA Awards for being highly creative. They observed that these highly creative ads, whether they were especially persuasive or not, scored high on the Awareness Index, and thus were likely to generate sales. So perhaps what is most important for long-term success is ensuring that a brand remains salient through creative and engaging advertising that reminds people what the brand stands for. Small differences, even intangible ones, can have big effects in relatively undifferentiated categories. The Old Spice campaign, “The Man Your Man Could Smell Like,” was different not only from previous Old Spice campaigns, but also from any other campaigns for male grooming products. In pushing the brand into new territory, the campaign risked being seen as inappropriate to the brand and category, but instead its tongue-in-cheek humor managed to engage a new young audience, thus reframing the brand and boosting its growth. But the Old Spice campaign didn’t work by making people note the brand’s “relevance” and immediately add the product to their shopping lists. Rather, it gave them a moment of amusement, which they probably forgot about almost immediately. But later, when they noticed the brand on the shelf, that amusement, whether consciously remembered of not, made the brand different—and for some people, that difference was enough to make them choose it.  Meaningful Difference Is Ongoing, Not One-off An intangible difference rooted in advertising memories can be enough to get someone to try a brand. But to finish the job of winning over a new user, a brand has to deliver a rewarding experience. A positive experience will confirm the user’s belief in the brand’s unique value, perhaps to the extent of supporting a higher-than-average price. In this way, I believe that brands are like my lump of serpentine. They start out with a meaning that is fresh, new, and specific, based on when and how we first encounter them. Then, over time, familiarity and experience layer additional significance onto them. Some of that added significance may be quite tangential to what originally motivated our interest in the brand, but it’s likely to be important to us nevertheless, just as the meaning that has accrued to my lump of serpentine over the years is important to me. So one of the most critical things a marketer can do is to continue to add meaning to a brand over time through events, sponsorships, and compelling communication. It is when a meaningful difference is conveyed and delivered in a way that resonates with consumers that attitudes and behaviors can be affected. Meaning, Not Relevance, Is the Difference Maker When we study today’s most profitable and successful brands, the importance of meaningful difference becomes obvious. The world’s strongest brands are not the ones that are most relevant. On the contrary, the most successful brands don’t try to be all things to all people. Apple’s shares of the computer and mobile phone markets are still relatively small, held in check by the price premium Apple commands. But Apple sits near the top of the BrandZ Top 100 Most Valuable Brands ranking. Burberry and Tiffany have both delisted cheaper items that were attracting the “wrong” type of customer. And sometimes customers make their own choices. Not everyone wants to shop at Wal-Mart. Relevance, on its own, is not a difference maker. It’s necessary but not sufficient for brand success. Relevance alone won’t motivate purchase, especially when brand switching is involved. Even when acting on impulse, people need to find something different and appealing in the brands they choose. Insomecategories,likesaltysnacks,carbonatedsoftdrinks,andconfectionary, it may be enough for a brand to have a bank of positive advertising memories in people’s minds. A pleasant and amusing association may be enough to prompt someone to say,“I like that one more than others.”In other categories, like computers, insurance, and airlines, marketing communication will need to provide a more coherent story of why a brand is different and better, if only to reassure people that they are making a good choice. Intheabsenceofameaningfuldifference,thecheapestbrandmayberegarded as the best choice. Lack of differentiation turns brands into commodities and marketing messages into white noise. But a meaningful difference can spark consumer interest and fuel demand for a brand, even when that brand carries a significant price premium. In today’s complex, confusing, and increasingly impersonal world, people cherish meaning wherever they find it, whether it’s in a brand, a memory, or a lump of rock. So to build value, give people a reason to cherish your brand. It is when a meaningful difference is conveyed and delivered in a way that resonates with consumersthatattitudes and behaviors can be affected Point of View NotJustDifferentbutMeaningfullyDifferent
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    While the varietyof ideas that marketing might communicate is endless, the general characteristics of things that people readily remember can be expressed in a short list. People remember things that are: • Relevant • Different • Emotionally impactful • Recently encountered • Frequently encountered Many people assume that the first three qualities - relevance, difference, and emotional impact - evolve out of the creative content, while the last two attributes are functions of media delivery. But it is not really so simple. The characteristics of the media vehicle used to deliver a message can shape the way people respond to the message itself. A medium can do more than just delivercommunicationsthatarerelevant,different,andemotionallyimpactful; a medium can actually play a significant part in making communications relevant, different, and emotionally impactful. And therefore, media play an important role in making communications memorable. Delivering relevance through media First and foremost, the relevance of a brand’s message derives from the nature of the brand and category being advertised. So, for example, no matter how cool your creative is, ads that pitch women’s fashion and beauty products to men are not likely to accomplish much. So much is obvious. But assuming that a brand has an appropriate target audience in mind, both the creative expression and the nature of the hosting medium will factor into the relevance of a piece of communication. Reaching the right people at the right time Most media plans are explicitly designed to deliver brand communications to consumers who will find them relevant. Audience measurement research and studies like TGI are used to identify media vehicles that will be good at reachingtheappropriatetargetaudience.Mediaagenciesalsoputmucheffort into identifying the situations, dayparts, or days of the week that present the best opportunities for brands. For example, out-of-home (OOH) advertising may be used to attract people’s attention before they shop; we know that this approach can be effective because our research often shows that OOH has a strong influence on purchase consideration. Advertisingaroundrelevantcontentisalsoatried-and-testedroutetoreaching people when they are most likely to be open to a brand message. Someone who is reading a fashion magazine is more likely to be engaged with women’s fashion and beauty products than someone watching a prime-time TV show, even if they are both members of the brand’s target audience. Media effects vary across groups Our CrossMedia research has confirmed the value of understanding in detail how different media perform with different groups. Among groups of people who are more or less predisposed to a brand or category, we usually observe different patterns of channel performance. In a recent study, online video had the greatest impact on one group, while cinema had more effect on another group. And both media outperformed TV overall. Because the same creative execution was used in all instances, we know that the difference in performance reflects differences in the relevance of each medium—and the message in that medium. The case for non-TV options On awareness and presence metrics, TV regularly outperforms other media per dollar spent. But on more fundamental measures of brand engagement and brand imagery, TV can be less cost-efficient than more targeted media like cinema, magazines, and online. This is a revelation to most people. Yes, TV is often important in creating initial campaign awareness, which can subsequently be reinforced and extended through communications in “secondary” media. But this is not the only effective approach, and it is not necessarily best practice. In fact, sometimes it is a misuse of non-TV channels - a result of sheer laziness on the part of advertisers. A TV ad can be a powerful communications device.Butsocanafull-pageadinamagazine, or a provocative or eye-catching poster. We have seen great brand impact from non-TV campaigns over the years, even before the digital explosion. The famous “White out of Red”poster campaign for The Economist (which featured text such as “‘I never read The Economist’ – Management Trainee, age 42”) contributed to building thestatusoftheBritishnewsweekly.Morerecently,theout-of-homecampaign that featured a Mini driving up a wall helped launch the “Mini Adventure” campaign. And in the digital arena, Dove’s viral video “Evolution,” didn’t need TV to succeed. Point of View James Galpin Director, Global Media Practice AMAP ATV ad can be a powerful communicationsdevice. But so can a full-page ad in a magazine, or a provocative or eye- catching poster Advertisingaroundrelevantcontentisalsoatried-andtestedrouteto reachingpeoplewhentheyaremostlikelytobeopentoabrandmessage Afashionmagazinereaderismorelikelytobeengagedwithwomen’s fashion&beautyproductsthansomeonewatchingaprime-timeTVshow The success of marketing communication is judged on a variety of factors, and one of the fundamental criteria is that people remember the ideas conveyed. TheOverlookedPowerofMedia: EnhancingtheMemorability ofCommunications
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    How Channel StrategiesHelp Build Difference Brands often set out to use media“differently”from their peers in a deliberate attempt to stand out from the crowd. They may do this by using a media channel that their category does not normally exploit, or they may target advertising or sponsorship around specific and distinctive vehicles within a channel. This phenomenon is behind much of the migration of brands into new media spaces, be they digital, experiential, or whatever. However, the most beneficial strategy is one that not only distinguishes a brand from others but highlights what is truly special about a brand. A strong brand sets itself apart by offering a brand experience that is meaningfully different, so media choices that amplify that difference will be most effective. For example, online shoe merchant Zappos was one of the first brands to advertise in the bins used for screening carry-on luggage in airports. They scored obvious relevance points by engaging people at a moment when they were unavoidably aware of their shoes, but they also subtly reinforced Zappos’ meaningful difference. The travelers who were already aware of Zappos’ unparalleled personal service were reminded of it as they endured a process not known for being warm, friendly, or personal. The contrast made what Zappos offered look better than ever. Advertising in atypical dayparts or program genres on TV can also set a brand apart. For example, a few years back, Kellogg’s started to advertise Corn Flakes on late-night TV in the UK. Consumer research had uncovered the fact that many adults consume this traditional breakfast food as a late snack or supper. The ads airing late in the evening stood out and made the brand seem in tune with its customers. Sponsorship is commonly used to build difference, as brands adopt some properties to try to differentiate themselves by association with special events or programming. It is remarkable the range of brands you will come across at various summer music festivals around the world. Mobile firms and big banks seem especially eager to get down and funky with youth, in an attempt to stand out from their staid, more businesslike brethren. How Media Can Help DELIVER EMOTION The role of media in delivering relevance and difference is fairly easy to demonstrate. It is harder to pinpoint media’s role in conveying emotion, either indirectly by enhancing a brand’s messages, or directly by evoking feelings in relationtothebranditself.Butwebelievethatthemediaenvironmentprovides an emotional context that can transfer to the brand and its communications. Leveraging Consumers’ Media Emotions Consumers feel strongly about the media they use; as a consequence, we know that they have a sense of some media being appropriate or inappropriate for some brands and categories. In both qualitative and quantitative research settings, consumers accept or reject various media options for particular brands on what seem to be largely emotional grounds. They may see a vehicle as being too youthful, too light-hearted, or too serious for a brand. Clearly, consumers see that the medium has a role in saying something about the brand—and this information may be very useful to a brand that needs repositioning. A brand that is struggling with perceptions of being old- fashioned and out-of-date may choose to go all out in new media to signal a more contemporary or youthful face to consumers. In a recent study in China, wesawthatonlineadvertisingwaskeytobuilding“modernandcontemporary” perceptions for a global drinks brand. EventhesimpleideaofbeingonTVmaysignalsomethingimportant.InChina’s developing consumer market, people have more faith in“big”brands because they seem more trustworthy and reliable. A brand that advertises on TV, and on CCTV in particular, is assumed to be big and trustworthy, especially by the less sophisticated consumers of inland China. This principle motivates many brands in many countries to invest in TV advertising, but it is most relevant for new challenger brands that are seeking to establish their credibility. Emotional Transference from Associated Content The other factor that can deliver emotional meaning to communication is the content in which it occurs. Highly engaging content is believed to lead to heightened attention during commercial breaks. So if advertising around engaging content leads to increased attention to ads, we think it reasonable to assume that advertising around specific types of content may transfer the emotional associations of that content to a brand. For example, advertising during seriousTV dramas or news programs could lend gravitas and credibility to an insurance company or a financial service provider. Comedy might be a better venue for candy, snacks, or fun vacation destinations. Asmostcampaignsrunacrossamultitudeofcontenttypes,ithasbeendifficult up until now to determine the influence of program content. However, we can see evidence more easily with sponsorships. Consider the success enjoyed by Baileys when it sponsored “Sex and the City” over an extended period. The association lent a sense of glamour and sophistication to Baileys and, perhaps most importantly, linked the brand to the sense of female bonding and togetherness that the show created among fans. Point of View Coca-ColawrapsitselfaroundtheOlympicsbecausetheseevents areexceptionalfortheirabilitytocreateasenseofcommunity Moving beyondTV, Red Bull is not seen all over dangerous and extreme sports events and media content just because it is targeting fans of these activities. Rather, by associating with activities that engender intense interest and excitement, the brand is trying to capture some of that emotional power for itself. By the same token, Coca-Cola wraps itself around the Olympics and the World Cup because these events are exceptional for their ability to create a sense of community. Across the world, these events bring people together through shared experiences, hopes, and dreams, and so they provide a fitting platform for a brand that 40 years ago aspired “to teach the world to sing in perfect harmony.” Delivering Not Only Messages, but Memorability Media can play a far wider role than the simple delivery of brand communications. Through their ability to carry messages to the right people at the right time, media vehicles can make or break the relevance of a brand’s communications. They can help a brand sit apart from the crowd and differentiate its message.Their emotional tonality provides a context that can help a brand get through to its audience and enhance the emotions that their message evokes. In some cases the vehicle may even directly influence the emotional associations of a brand. In fact, a great media choice may do all of these at once, reaching relevant peopleinadistinctiveandemotionallyengagingcontextandthussubstantially enhancing the memorability of brand communications. Of course, if smart media selection can do all this good, we also have to recognize that ill- considered placements may do considerable harm. This just makes getting it right all the more important. The quality of the creative is of course a critical element in the success of brand communications. But Marshall McLuhan was also on the right track when he famously stated,“The medium is the message.”For brand communications, the medium is a very significant part of the message. Therefore, advertisers need to go beyond the question of just how much to spend. All GRPs are not created equal; smart media decisions can significantly enhance memorability and enable marketers to get the most out of their communications investments. Through their ability to carry messages to the right people at the right time, media vehicles can make or break the relevance of a brand’s communications. TheOverlookedPowerofMedia: Enhancing theMemorabilityofCommunications ‘A brand that advertises onTV in China, and on CCTV in particular, is assumed to be big and trustworthy’
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    The evidence isin Jim Stengel’s new book, Grow: How Ideals Power Growth and Profit at the World’s Greatest Companies. With the help of Millward Brown Optimor, Jim identified the 50 brands that ranked highest on both consumer bonding and value creation over the past decade.1 As we worked with Jim to understand what made these brands so successful and fueled their growth, we observed that the best businesses are ideals-driven. What Is a Brand Ideal? A brand ideal is a higher purpose of a brand or organization, which goes beyond the product or service they sell. Jim explains it this way: “The ideal is the brand’s inspirational reason for being. It explains why the brand exists and the impact it seeks to make in the world. A brand ideal actively aims to improve the quality of people’s lives. It creates a meaningful goal for the brand—a goal that aligns employees and the organization to better serve customers.” The brands in the Stengel 50, though they come from both public and private companies in B2B and B2C businesses, and include established as well as younger, smaller, fast-growing companies, all have a clear sense of purpose. Zappos is in the business of delivering happiness. Pampers does not just sell diapers; it cares for the happy, healthy development of babies around the world. IBM’s purpose is to make a smarter planet. Google exists to organize and give access to the information of the world, and Discovery Channel’s ideal is to satisfy curiosity. A Brand Ideal Is Not … A brand ideal is not a mission statement. Mission statements tend to be narrow, business-oriented statements such as “Be the leader in customer satisfaction” or “Be the most innovative company.” Mission statements tend to be self-serving and therefore limiting. Ideals, being outward focused, extend beyond the company’s financial interests. Red Bull’s ideal is to uplift mind and body; it exists to energize the world.“To be the #1 energy drink” is probably a mission for the company, yet it is seen as an outcome, not its raison d’être. Nor should an ideal be confused with corporate social responsibility (CSR) or cause marketing. The ideal is a core principle inherent in a brand, something that emerges from a company’s DNA. Though such a high-minded concept may seem impractical or lofty, we also have proof that ideals-driven businesses deliver higher performance. We have consumer research data as well as financial data that verifies the power of ideals. Research recently conducted by Millward Brown found that, when asked to name brands that were based on ideals, people mentioned the brands in the Stengel 50 more than other brands. We also have proof that ideals-driven businesses deliver higher performance. As shown in the chart below, Stengel’s top 50 brands outperformed the market over the past 10 years. An investment in the Stengel 50 would have been 400 percent more profitable than an investment in the S&P 500. How Brand Ideals Light the Way When a brand ideal is at the heart of a business, it serves as a light from within that guides every decision of the leaders and employees in every department, from HR to finance to marketing to product development. Ideals, we found, help shape a business and organization in three distinctive ways. First, ideals lead to the creation of more meaningful products, services, and customer experiences. Second, ideals align the organization and its culture behind a common purpose. And finally, ideals lead companies to rethink the way they engage and communicate with consumers; ideals move them beyond selling and telling consumers what to do to inviting them into dialogue. Point of View Benoit Garbe Vice President, Millward Brown Optimor Jim Stengel Global Marketing Officer Procter & Gamble (2001-2008) Author: Grow:HowIdeals PowerGrowthandProfitatthe World’sGreatestCompanies The ideal is the brand’s inspirational reason for being. It explains why the brand exists and the impact it seeks to make in the world 400% 0% STENGEL TOP 50 S&P 500 The Stengel 50 Outperform the Market “Doing well by doing good”— is that really attainable?We have always thought so, but now we have proof.The most successful brands and businesses in the world are built around something other than just making profit.They are built around ideals.” Ideals:TheNewEngine ofBusinessGrowth
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    Ideals inspire outstandingbrand experiences The sense of meaning that comes from delivering on an ideal inspires a high level of dedication to producing the best possible brand experience for customers. Product performance, innovation, packaging, design—all of these elements are inspired, developed, and refined in the light of the ideal. Method, the household cleaning company, was built on the ideal of inspiring a home revolution to create happy, healthy homes. Every aspect of each product is inspired by the ideal: the non-toxicity, the natural scents, the beautiful ”cosmetic-like” packaging. Apple offers the best experience through beauty and simplicity. Chipotle Mexican Grill, another one of our top 50, fulfills its ideal of bringing integrity and taste back to food by inviting patrons to create their own custom dishes using fresh, natural, and locally sourced ingredients. Ideals align organizations The best companies align their organizations and culture behind their ideals. By being purposeful (beyond making money and growing market share), they provide a higher meaning to all employees. The ideal provides clarity and intentionality. More importantly, these companies develop systems and processes to stay true to their ideals. For example, Red Bull has set unique hiring guidelines. They don’t put a priority on hiring people with beverage industry backgrounds; instead they focus on athletes, DJs, and former Red Bull student ambassadors—people who believe in and live the ideal. Even the workplace is designed to be true to the ideal. For example, Red Bull’s London headquarters has skateboard ramps and slides from floor to floor! Zappos has set up processes that allow employees to be true to the ideal of deliveringhappiness.Employeesdonothavequotasortimegoalsforcustomer calls. Nor do they adhere to scripts. They are empowered to help customers in need, whatever it takes. There are stories of employees sending flowers to customers in distress and helping customers order pizza in the middle of the night. And for Zappos, delivering happiness has delivered sales. The company exceeded the $1 billion mark this year and has the highest loyalty rate of all online retailers. Ideals redefine consumer engagement Finally, a brand ideal changes the basic rules of communication by inspiring companies to engage with consumers in a more meaningful way. Rather than telling consumers what to think or do, they take the lead in inviting consumers to co-create with them. For example, IBM invites consumers, thought leaders, and employees to rethink how we can make the planet smarter, whether that’s by fighting crime, addressing traffic congestion, or using energy more efficiently. Rather than simply communicating the benefits of their diapers, Pampers has partnered with UNICEF in providing vaccines to eradicate maternal and newborn tetanus, and created online and offline forums where moms can gather to discuss and learn about the health and development of their babies. Ideals Can Also Light the Way Back Companies and brands can go off course, whether or not they are guided by ideals. However, a brand ideal can help a company find its way back. The rise, fall, and recent turnaround of Starbucks provides a good example. Starbucks was built on an ideal—to create human connections. From a few stores in Seattle, the chain grew into being the cornerstone of every neighborhood in America and around the world. However, this focus on growth became a distraction that got Starbucks into trouble—until it returned to its beliefs, values, and ideal. After years of rapid growth and expansion, in 2007 the chain found itself overexpanded and confused about its purpose. Was Starbucks meant to promote human connection or simply to be ubiquitous on every street corner? Was Starbucks meant to promote human connection or simply to maximize profits through speedy and efficient service? A succession of incremental decisions made over the years had led Starbucks away from its fundamental values. Drive-through windows didn’t foster face- to-face interactions. An emphasis on speed and efficiency interfered with employees’ ability to create a sense of community. Automatic espresso machines reduced the need for the care and craftsmanship of a Starbucks barista. The magic and romance had been lost; Starbucks was no longer celebrating coffee. When Howard Schultz returned as CEO in January 2008, he refocused the organization on the brand ideal, thereby impacting the product and customer experience, the company culture, and its consumer engagement. First, Schultz restored coffee to its original place as the brand centerpiece. “Starbucks is more than coffee,” said Schultz, “but without coffee, we have no reason to exist.” On February 26, 2008, 7,000 U.S. stores were closed for the retraining of 135,000 baristas. This bold action was just the first of many initiatives, including the return to on-location grinding, the launch of the Pike Place Roast, and the redesign of the look and feel of the stores. Second, once he was back at the helm, Schultz reminded the organization and all of its partners why the company existed. Many companies fail, he said, ”not because of challenges in the marketplace, but because of challenges on the inside.” Schultz worked to remove operational and structural barriers to realizing the ideal and to reinforce the“big why”of Starbucks—to inspire and nurture the human spirit, one person, one cup, and one neighborhood at a time. Finally, Starbucks set about reengaging with consumers in a more meaningful way than before. Schultz entered the company into a highly visible and publicized partnership with Conservation International and committed its coffee to being“Responsibly Grown, Ethically Grown, and Proudly Served.”One ofthefirstbrandstoenterintodialoguewithconsumerswhenitexperimented with MyStarbucksIdea.com in 2008, Starbucks continues to co-create with consumers and is now one of the most active brands in social media. Going back to living its ideal helped turn Starbucks around. Its stock price, which bottomed out at $8.43 in 2008, ranged between $46 and $48 during January 2012. Starbucks turned itself around by going back to living its ideal – to inspire and nurture the human spirit, one person, one cup, and one neighborhood at a time Point of View Ideals:TheNewEngineofBusinessGrowth A brand ideal serves as a light from within that guides every decision in every department, from HR to finance to marketing to product development
  • 40.
    What Lights UpYour Brand? The best brands have navigated by the light of their ideals for decades. Some brands were organized around an ideal from their inception, while others chose to consciously and deliberately reorient their businesses around a higher purpose. So we believe that all brands and businesses, whether they are presently driven by the loftiest ideals or the most mundane purposes, can learn from studying brands like those in the Stengel 50. Consider the following questions. Why are you in business? Does your company operate around a brand ideal? If not, did it ever? Don’t try to“invent”an ideal—a true brand ideal can’t be developed by a task force. But your company may have been founded on an ideal that will still be relevant onceit’sunearthed.Consideryourcompany’sheritage.Whatdidyourfounders believe in? Why did they get into business? What need did they set out to address? Why do employees believe in what they do? Is your ideal clear, and are you acting on it? Whether or not your company offers a higher-order benefit to the world, everyone in your organization should have a clear understanding of your brand’s purpose and be empowered to act on it. Does your ideal guide decision making? Does it inspire innovation? How does the ideal impact your products and services? Is your organization aligned around your ideal? Take a look at your organization’s structure. Does it facilitate the expression of your ideal? Are employees in all functions able to keep it in view? Is the achievement of short-term goals balanced against the long-term fulfillment of the ideal? In light of your ideal, how do you hire and promote? How often do you revisit your ideal? Abrandidealthatiskeptunderglasswillnotserveyourorganization. Scrutinize every action, decision, and significant change in light of your ideal. Only by constantly referring back to your company’s reason for being can you avoid the creeping incrementalism that undermined Starbucks. Brand Ideals: The New Path for Growth The brands that will survive and thrive in the decades to come will be those that are based on ideals, because in changing times and challenging circumstances, a brand ideal serves as a beacon. It guides the brand along a path of growth and change, helps to identify opportunities for challenging the status quo, and sheds light on new and different ways to deliver higher-order benefits in the future. It‘s time to reset the course of marketing. Brand ideals represent a new path for growth. Leaders who build their companies around ideals will have a meaningful impact—on consumers, their employees, their businesses, and ultimately the world. The brands that will survive and thrive in the decades to come will be those that are based on ideals Point of View Ideals:TheNewEngineofBusinessGrowth
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    he promise ofmobile marketing is staggering. And for good reason: Despite an overwhelming lack of enthusiasm for it, audiences respond to it. According to the latest AdReaction report out today from Millward Brown and its Dynamic Logic and Firefly Millward Brown units, one-third of mobile users report taking action in response to mobile advertising. Almost half report interacting with a brand on their mobile device following recommendations from friends or family members. And one-third of users say that receiving deals or promotions via mobile improves their opinion of the brand. While these engagement figures are undoubtedly promising, the fact that only 11 percent of smartphone users and 16 percent of tablet users indicate they are favorable toward mobile advertising signifies a fairly deep chasm between effectiveness and love. Why is that? Here is what we heard: By Joline McGoldrick, Research Director at Dynamic Logic, Millward Brown’s Digital Practice Mobile:AnEffective -YetUnloved- MarketingMedium T A mobile device is also a tool, and the mobile web a personal space. Users are goal-directed. Non-user-initiated contact temporarily derails them from their goal, and they want tangible value in exchange. Response to various ad formats varies significantly by demographic and psychographic variables. Understanding where flexibility or openness exists is essential. Users expect mobile marketers to know who they are and to target them accordingly. Close to 40 percent are willing to share their location and interests in exchange for the right content and promotions. To the chagrin of mobile users, many marketers still don’t target effectively or appropriately. Many mobile sites or apps simply don’t work. Users who take action on an offer or recommendation are often sent to a site or app that, at best, doesn’t meet their mobile needs or, at worst, doesn’t work correctly. Users have extremely high expectations of mobile’s technical competence. No one likes“rude intrusion.”Marketers often overreach by asking for too much personal information, delivering irrelevant ads or brand posts, or not offering consumers a simple way to opt-out. Not surprisingly, this behavior is then imputed onto the brand itself.
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    Correcting these driversof mobile dissatisfaction sounds simple, but many mobile marketers have yet to improve their tactics, despite an audience so open to being wooed. The solution? Commitment to 10 principles that are key to winning over audiences and building lasting value for brands. Mobile Display 1. Offer a clear call-to-action. No medium is more primed to engage a consumer on the spot. Make sure your mobile ad does everything possible to prompt a response. 2. Target the person, the moment, the location. Users have an expectation of mobile’s built-in intelligence, and poor targeting suggests that brands are too lazy to send“the right ads.” 3. Develop integrated mobile campaigns. Mobile ad units are a layer of the mobile continuum – not a strategy. Use display ads to drive traffic to an optimized website or app for continued engagement. Mobile Websites 4. Be fast. Be clean. Be functional. Don’t feel compelled to outdo your online website, but optimize it for the mobile platform and across devices. Embrace the goal-directedness of the mobile user and minimize taps. Subaru’s mobile site is a great example —two taps delivers location-based deals. 5. Don’t value entertainment over competence. Deliver functionality first and reward later. 6. Keep the latest news on top and tailor to the location. Mobile Apps 7. Make apps easy to acquire, user-friendly, crash-proof and free. 8. Be relevant. Design with the core target, primary use and operating system in mind.  Answer the when, where and why about your app. A great example is Home Depot’s app that allows users to scan QR or UPC codes in the store, read product info or reviews, and share or add to a shopping list. 9. Be mindful of using audience resources. One-third of users say apps drain their battery while one-in-five feel that apps want too much info. 10. Once you’ve done the above, aim to surprise and delight. Users report only using half their apps regularly. Provide a reason for them to come back. One respondent in the study said,“The Sam’s Club app was like eye candy. I would seriously consider getting a membership based on how cool their app was. It made it so easy to shop.” Mobile marketing, when done right, can measurably improve consumers’ opinion of a brand. Normative data from Dynamic Logic indicates that mobile ads can typically increase brand awareness, message association and purchase intent four times that of online ads. The appetite for effective mobile marketing is here today– in a very big way. Respecting the wants and needs of consumers and the distinctiveness of the platform is essential and can be the difference between damaging your brand and inspiring immediate action – and maybe even a little love. First published in the November, 27 2012 edition of Forbes, www.forbes.com Mobile: An Effective - Yet Unloved - Marketing Medium
  • 44.
    hile everyone wasgetting excited about the potential of the BRIC nations, Africa quietly emerged as the real growth story, and with apologies to Star Trek, Africa may just be “the final frontier”. No other continent offers the same growth potential. Africa boasts tremendous mineral wealth, holds 60% of the world’s uncultivated arable land, and recorded real growth throughout the recession. According to the latest UN World Population Prospects report, Africa will be the fastest-growing continent “by any measure” over the course of the 21st century, and investors are understandably interested. The rise of Africa is an indicator of the changing orientation of the global economy. Africa’s raw materials have attracted the attention of China, both as a lender and trade partner, and China’s investment has been a critical driver of current growth. As major socio-economic changes occur across the continent, the wealth of African society is growing, fueled by the emergence of the middle class. According to The Economist, over the past 10 years, six of the 10 fastest-growing economies were in Sub-Saharan Africa, and in the next five years, seven Sub-Saharan economies are expected to make the list. Truly, the next decade belongs to Africa. While many wonder if the current flood of growth can continue, recent developments on the African continent suggest that it can. Political stability, particularly within the DRC, Angola and Mozambique, has encouraged investment in these large and growing markets (Mozambique has been the fastest-growing non-oil economy in Sub-Saharan Africa over the past 15 years). Macroeconomic stability has enabled broad-based economic expansion, attracted Foreign Direct Investors (FDI’s), and sustained aid flows to fund social and physical infrastructure. Increasingly stringent oversight from FDI’s has required African governments to improve fiscal planning, and as a consequence, general inflation in Africa has fallen from levels exceeding 20 percent to single–digits. Widespread privatization has eventually proved bountiful despite the initial hurdles encountered. And the professionalization of core service deliveries such as telecommunications has had positive knock on effects in other sectors. By Charles Foster, Paul Omondi and Chris Githaiga Millward Brown East Africa W OnOurDoorstep:The AfricanGrowthStory Figure 1: World’s ten fastest growing economies - Annual average GDP growth 2001-2010 (2010 estimate) Angola 11.1 China 10.5 Myanmar 10.3 Nigeria 8.9 Ethiopia 8.4 Kazakhstan 8.2 Chad 7.9 Mozambique 7.9 Cambodia 7.7 Rwanda 7.6 2011-2015 (Forecast) China 9.5 India 8.2 Ethiopia 8.1 Mozambique 7.7 Tanzania 7.2 Vietnam 7.2 Congo 7.0 Ghana 7.0 Zambia 6.9 Nigeria 6.8 Sources: The Economist, IMF Figure 2: GDP Growth, unweighted annual average, % 6 5 4 3 2 1970s 1980s 1990s 2000s 2011-15 forecast Excluding countries with less than 10m population and Iraq and Afghanistan African Countries Asian Countries
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    The continent’s dynamismis evident in its economic achievements: • The emergence of large African companies, notably • 20 African companies with revenues of at least $3 billion • More than 100 companies with revenues of at least $1 billion • More than 316 million new mobile phone subscribers have signed up with over 50 mobile service providers since 2000 Growth is expected to continue in all areas: • Africa’s collective GDP will increase from $1.6 trillion to $2.6 trillion by 2020. Over the same period, consumer spending will grow from $860 billion to $1.4 trillion • Agricultural output will increase from $280 billion today to $880 billion by 2030 • The number of Africans of working age will exceed 1 billion by 2040, when the continent will be home to one in five of the planet’s young people and its labour force will be the largest in the world, topping both China and India • On average, African workers are currently half the cost of their counterparts in Central Asia, Latin America and Eastern • Europe, and this presents vast opportunities for factory investments in over 30 markets (only restrained in the North where strict Islamic code makes for tough business). Getting a foothold in Africa: Does one shoe fit all? It is imperative that companies recognize that Africa isn’t one economy or homogenous population block. It is a conglomerate of 53 countries which, more often than not, don’t share policies and attitudes, and have evolved differently through their social and economic pasts. Successful brands on the continent are those that have made strategically compatible entries into select African markets, depending on the product category and the economic stage of the country in question. On Our Doorstep: The African Growth Story Africa, just what are we talking about? While growth is exploding throughout its various regions, Africa remains a very diverse continent on many scores. The population of Africa exceeds 1 billion people, who: 1B Representover500ethnicgroups SPEAKOVER2000 LANGUAGES LIVEIN53COUNTRIES (including6islandnations) OFTHEWORLD’S OILRESERVES 10% 40% OFTHEWORLD’S GOLD OFTHECHROMIUM &PLATINUMGROUP METALS 90% UPTO OFTHEWORLD’S UNCULTIVATEDARABLE LAND(600millionhectares) 60%
  • 46.
    Who and whereare the consumers? Using LSMs, we can broadly classify the African consumer into 5 groups. It is in groups 2 and 3 that we have seen the most phenomenal growth. The members of Group 2 are referred to as the urban poor; it is not until you reach Group 3 that you can start referring to the middle class (using financial sector classification based on a household income of $5000 pa). African households spent a combined $860 billion in 2008, slightly more than that of Russia and over $100 billion more than India. It is this increase in the lower-middle and upper-middle LSM consumer base that is set to differentiate the continent from the BRIC countries as options for investment for corporations looking to expand further into emerging markets. It is in groups 2 and 3 that we have seen the most phenomenal growth. The members of Group 2 are referred to as the urban poor; it is not until you reach Group 3 that you can start referring to the middle class (using financial sector classification based on a household income of $5000 pa). African households spent a combined $860 billion in 2008, slightly more than that of Russia and over $100 billion more than India. It is this increase in the lower-middle and upper-middle LSM consumer base that is set to differentiate the continent from the BRIC countries as options for investment for corporations looking to expand further into emerging markets. The media and communication landscape So how do brands reach the 1 billion Africans? According to recent data1, radio and TV are the primary sources of information on products and services. It is estimated that there are some 200 million radios on the continent, making radio a crucial channel in reaching the consumer, while TVs number about 62 million – a ratio of one TV for every 17 people (or every four to five households). Print (newspaper and magazine) performs dismally with single-digit reaches. The typical consumers targeted by FMCGs are usually urbanites with disposable incomes. Millward Brown data indicates that within this group, the reach (defined as access during the past seven days) of radio runs between 70 and 80% of the target population, while TV reaches between 40 and 50%. The reach of print diverges from west to east; in West Africa print reach averages 30% while in East Africa it gets to the high 50’s. Brands on the continent that have been successful at reaching the mass market (rural and low-end) while staying relevant to the middle and upper classes have been able to make the varying reaches of these two key media complement one another. A great example was MTN’s campaigns during the 2010 FIFA World Cup and Africa Cup of Nations, where a 360° approach to the media mix was highly successful. While seeking to reach as much of the African population as possible, the BBC has estimated their total reach at around 90 million across the continent. Of this, 78% is by radio, 20% by TV and about 2% by internet. What is interesting to note is that two-thirds of TV viewers listed radio as being equally important to them. While TV is rarely the most cost-effective medium, it does deliver volume in terms of quantity of impressions and ultimately response. Analysis shows that two (or more) media is better than one. Digital • There are 84 million internet-enabled mobiles in Africa. • More people have access to cell phones than to clear drinking water • 40% of all businesses in Africa use ADSL • 12% of Kenya’s GDP moves via M-Pesa • M-Pesa will move at least $1 billion in Kenya alone this year • As of December 2011, there were more than 37 million Facebook users in Africa, representing a growth of 165% over the preceding 18 months Successful brands on the continent The African market is dynamic and evolving, with many global brands represented, and a homegrown market for locally manufactured products. Africa’s top advertisers include MTN, Globacom, Airtel, Guiness Stout and Coca-Cola, and Nokia. Africa’s main challenges lie in its enormous size and diversity. A thorough understanding of local cultures, beliefs, customs, economics, and practices is required to be successful. Companies and practitioners that have followed globalized assumptions and methods have failed to make an impact. A key factor for success is having marketing operations headed by locals who understand and connect with what consumers need. The route to market presents the greatest obstacle that companies must overcome to build a successful business in any African market. Given that more than 60% of people in Africa live in rural areas and have limited access to transportation,simply covering “the last mile” to reach the final consumer can be extremely costly and difficult for marketers. To be successful, companies must build strong sales and distribution networks by leveraging a mix of third party, wholesale, and direct distribution models. On Our Doorstep: The African Growth Story LSM1 Group 1 Lower LSM’s Largest group - 50%+ Mainly rural “Appearance”secondary Hygiene key Low economic participation LSM2 LSM3 LSM4 Group 2 Lower Middle LSM’s Over one third Equally urban/rural “Appearance”key Hygiene secondary Weak economic participation The lower middle class LSM5 LSM6 LSM7 LSM8 Group 3 Upper Middle LSM’s Minority but growing More urban “Appearance”matters Hygiene matters Investment is key The“haves” LSM9 LSM10 LSM11 LSM12 Group 4 Upper LSM’s Minority but growing More urban “Appearance”matters Hygiene matters Investment is key The“haves” LSM13 LSM14 LSM15 LSM16 Group 5 Elite Urban Affluent, actualization, no barriers to access what they want LSM17 Figure 3: LSMs In Africa, the Living Standards Measures (LSM) has been developed to better determine the socio-economic status of a household. It is arrived at after summing up household durables, educational background and activities that have been assigned some values. Africa has LSMs 1 – 17.
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    On Our Doorstep:The African Growth Story Without doubt, Africa has been at the forefront of telecommunications development over the past decade and a half. The opportunity in this sector attracted Asia’s biggest player, Airtel, into the market, making it the second-largest service provider in Africa after MTN. MTN is the first African brand to be listed in the 2012 BrandZ™ Top 100 Most Valuable Global Brands study published annually by Millward Brown. Nokia rediscovered itself on the continent after flagging sales saw it lose its market leadership in Europe. Today they enjoy a massive market leadership on the back of a distribution network in nearly 100% of African countries. In the beverage category there are global brands such as Coca-Cola who have almost 100% presence in all markets and SABMiller, a true African born-brand, with a footprint in over 30 markets (only restrained in the North where strict Islamic code makes for tough business). “SABMiller’s tactic has been to buy local brands and then invest intelligently in emerging markets rather than exporting one homogeneous brand to every corner of the globe. The origins of the company have played an influential role in this strategy. We were also the first global company to see the beer market as a series of local brands, identifying that you can’t impose a brand, a way of thinking or business; the key is to customize things to the local market.” Jonathan Oates Business Media Relations Manager SABMiller Source: food processing-technology.com In the banking sector a similar dynamic exists, with global brands (Barclays in 12 markets and Standard Chartered in 14) fostering new expansion alongside home grown brands like Standard Bank (South Africa) and the group of Nigerian banks led by UBA and EcoBank. The retail sector on the continent has been abuzz with the entry of Walmart. Walmart’s $4.2-billion purchase of 51% of Massmart now gives the world’s biggest retailer access to African markets. But it’s been South African based chains that have been setting the expansion trend to confirm the growth of the middle class. None other epitomizes this better than Shoprite, which today is in 16 countries compared to one shop 1995. Poor infrastructure in Africa means that understanding the consumer needs may be easier than getting the product to them, regularly and consistently. Proctor & Gamble cracked the Nigerian market with a 10-year plan by building a dedicated supplier distribution network – you have to be patient on the continent! Developing innovative, low-priced consumer products and services is also a key factor. Nokia has shown how this can truly be a profitable and fortune-changing approach to market penetration, and shares this space with Safaricom, whose unique money transfer product was developed on the back of an obvious need. For African brands to break through, they must build brands underpinned by local insights that motivate African consumers while delivering on a global standard. A great example is Pay- As-You-Go, Africa’s first prepaid airtime service. Initially mobile networks had contract-based services geared towards the wealthy, but on a continent where formal employment is rare, mobile telephony was for the elite. Pay-As-You-go changed this, and the mobile telcos have never looked back. Today the concept is a key driver in most telecoms business models. Brand Success Case Studies on the Continent 1. The Telecoms Sector MTN, 1OO million subscribers in Africa In a place where the challenges of infrastructure and environment have thrust millions of people into marginalization, mobile networks arrived to connect individuals and societies, providing the ability to communicate and access information. In Africa,the accessibility of basic voice telephony that we know and take for granted, had a transformative effect on these people and countries. MTN is a seasoned veteran of doing business with rural consumers, with operations in 21 markets across Africa and the Middle East. To boost its market share among rural, low-income Africans, MTN created services tailored to their needs. They established a network of local agents, set up kiosks in rural areas, and gave agents motorbikes to reach even the most remote places. Adopting a customer-focused strategy, MTN set up as many outlets as possible for their subscribers to gain access to their products and services. MTN also developed lower denominations when selling airtime to accommodate the low and unpredictable incomes of many African consumers. They introduced innovations like telemedicine and voice- based apps such as iCow and Xam Marse to provide rural farmers with real-time access to market prices through the internet on their mobile phones. Nowhere is the astounding utility of a mobile phone more apparent that in the rise of mobile money. This mobile network system allows customers to virtually wire cash to each other, either from simcard to simcard or from phone to phone. MTN Mobile Money launched in 13 countries and at the end of March 2012 had 6.2 million subscribers. Mobile money is still in its infancy, but we are arguably looking at the future of money and financial transactions, and it’s unfolding on the bustling streets of Africa. In Uganda alone there are now 2 million mobile money customers, and only 500,000 banking customers in the formal sector. Only when marketing meets with social need do we start to see this kind of societywide traction.
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    Mobile telecommunications hasproven to be a life-and-society- changing phenomenon, and as MTN entered country after country, the brand embraced its role as the champion of everyman. And at the heart of this African business was a clear vision – not just to spread and proliferate products or services, but to speed up the progress of the emerging world. Companies that deliver infrastructure, like mobile telephone networks, play a much bigger role than in just the marketplace. There are places in Africa where communities are yet to experience running water or electricity.Yet they have access to an MTN Village Phone, and therefore access to the world. MTN is also one of the biggest employers on the African continent, training local people to deliver on a global brand, yet keeping the company rooted and involved in society. Through such innovative distribution and promotional activities, MTN has been able to capture a significant proportion of the lower LSMs, which is a critical entry point to the African market. Half of the continent’s 1 billion population own a mobile phone (making Africa the fastest growing mobile market in the world after Asia), but their use extends far beyond just telephony. The power of the mobile is forging a new enterprise culture in Africa from banking, to agriculture and healthcare. 2. The Banking sector UBA United Bank for Africa (UBA) is one of Africa’s leading financial institutions offering banking services to more than 7 million customers via 750 branches in 18 African countries. With offices further afield in New York, London, and Paris, UBA is connecting people and businesses across the world through retail and corporate banking, innovative cross-border payments, trade finance, and investment banking. Over the past three years, UBA has undergone a period of rapid expansion that had seen affiliate banks in 16 African countries come on board. The consolidation of UBA’s affiliates under one brand and the implementation of consistent policy and standards enabled the bank to make phenomenal changes between 2008 and 2010. This was especially meaningful given that during that period Nigerian Banks experienced a run from customers that forced the Central Bank to intervene and culminated in jail sentences for some senior managers. The success of the Bank has seen Tony Elumelu, the MD during this volatile period, become a much sought-after business and motivational speaker across the continent. 3. Retail Sector – Shoprite The Shoprite group is today Africa’s biggest food retailer, with operations in 16 countries, including Angola, Botswana, Ghana, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Nigeria, South Africa, Swaziland, Tanzania, Uganda, Zambia, Zimbabwe and the Democratic Republic of the Congo. Shoprite began by consolidating its market leadership in its home market of South Africa by uniquely targeting the middle to bottom end of the local food retail market. In addition, the group sought further efficiencies through employing a central distribution strategy. Essentially, central distribution involves owning a series of warehouses to which suppliers make their deliveries. Trucks are then sent out to stores as stock is required, rather than depending on suppliers’ schedules or reliability. This not only ensured that Shoprite controls its own supply chain but has also reduced the costs associated with stores needing to incorporate enormous loading and storage areas to hold large inventories. Shoprite also diversified into other target market outlets, with the result that the retail outlet became a one-stop convenience store and their money market counter provided links to other service providers. Where the continent is headed Foreign investors are no longer just interested in oil wells and mines in Africa, but are looking at medium-sized bets on consumer goods. Analysts are consistent in identifying Retail, Banking and Telecoms as sectors that will drive the African economies forward in the next decade, and these sectors are consistent with the identified growth paths taken by key African economies. Global companies are including Africa in their growth strategies as consumer demand in more mature markets struggle post the global recession, and the growth of the African continent is driven as much by commodities and technology as it is by improving governance and the spread of democracy. And economic change has made life more rewarding for Africans themselves. The continent is truly opened for business! On Our Doorstep: The African Growth Story Article reprinted with permission from Warc, August 2012, www.warc.com Sources: McKinsey,The Economist, IMF, Millward Brown, BrandZTM , BBC, Synovate, ITCWorks,The Jupiter Drawing Room
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    Luxury brands arethriving as consumers save their money for special items. Nick Cooper, Managing Director of Millward Brown Optimor, Europe, explains which brand strategies work best. LUXURY STRATEGIES EMERGING Insights from BrandZ
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    Luxury brands grewby 15% in this year’s BrandZ Top 100 Global Brands, more than any other category. Louis Vuitton bagged the top spot as the world’s most valuable luxury brand with a value of $25.9bn. The Most Valuable Luxury Brands 2012 Underlining the health of the sector, Hermès at number two in the luxury category, with a 61% rise in brand value to $19.2 billion, gained the most places in the Top 100 ranking of all brands. It is now ranked 32nd, up 39 places. A number of factors are behind the success of the luxury sector. After several years of economic difficulty, North Americans and Europeans who could afford luxury indulged. In addition, in China and other fast-growing markets, sales rose as the expanding middle classes continued to indulge their appetite for luxury brands. While shoppers have become smarter in the way they choose brands – with considered rather than conspicuous purchasing – they are still determined to spend, but spend more wisely. Many have focused less on collecting luxury labels and more on creating a unique personal look that often mixes luxury brands with more affordable options. What luxury brands have to do is tick the key boxes of quality craftsmanship, heritage and history – and thereby meet the expectation of being seen as a good investment, with the trend towards classic pieces rather than high fashion. In particular, young professionals who are increasingly unable to purchase property, are spending their disposable income on affordable products from luxury ranges offered by brands such as Prada, D&G, Hermès, Gucci and Louis Vuitton. Despitetheeconomicturmoil, luxurybrandsarethriving. Category rank Gobal rank Brand Value in $ million Brand value change from 2011 1 21 LouisVuitton 25,920 +7% 2 32 Hermès 19,161 +61% 3 - Rolex 7,171 +36% 4 - Chanel 6,677 -2% 5 - Gucci 6,420 -14% 6 NEW Prada 5,788 n/a 7 - Cartier 4,843 -9% 8 - Hennessy 4,596 -8% 9 - Moët & Chandon 4,217 -8% 10 - Burberry 4,090 +21% Emerging Luxury Strategies
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    What luxury brandshave to do is tick the key boxes of quality craftsmanship, heritage and history – and thereby meet the expectation of being seen as a good investment, with the trend towards classic pieces rather than high fashion Luxury trends There are a number of emerging trends that are visible in the 2012 figures, or are becoming more powerful drivers of performance. • First, given that most luxury brands are European in origin, the continuing decline in the value of the euro has prompted extra sales volumes as they become more affordable. • Second, the decisive movement of luxury brands into digital offerings has created added interest and accessibility. • Third, products for men have grown dramatically, outpacing the larger market for female products. • Fourth, the fact that luxury brands do have overt heritage and craftsmanship as part of their DNA has been leveraged more explicitly, with significant movement of high-end manufacturing returning to Europe (a trend also helped by the weakening euro). With healthy demand, brands have expanded their presence. They have opened new stores, engaged with e-commerce and invested in advertising. Burberry, for example, extended the brand’s appeal, creating a youthful virtual world in which customers experience the brand by viewing fashion shows, for example. The brand added a new twist to its iconic trench coat with Burberry Bespoke, an online facility that enables the customer to assemble a unique trench coat online, selecting style, fabric, colour and other individualizing options. Brands have also attempted to unify the advertising and online expressions of the brand with the in- store experience. Louis Vuitton, for example, designed a store on Marina Bay in Singapore to resemble a cruise ship, reflecting the brand’s travel heritage, which is also celebrated on the LV website. Many luxury products companies want to take greater control of the brand, shifting away from licensing and franchising. Burberry, Prada and Hermès are good examples. Emerging Luxury Strategies TheLouisVuittonstoreonMarinaBay,Singapore
  • 54.
    Emerging strategies The coreconundrum facing luxury brands, however, remains the same. They must achieve the right balance between protecting the exclusivity that, to an extent defines luxury, and making the brand experience accessible to a wider audience. The implications will vary from brand to brand but it is possible to identify five clear themes for luxury strategists: • While a great deal of focus is going into expanding owned-stores networks in fast-growing markets, leading brands are investing significantly in creating new or revamped flagship stores in Europe. Nothing beats the cachet of buying a luxury brand in its home market. • As demand grows, many brands are more clearly segmenting their ranges, whether it is by age or price or gender, in order to preserve the aspirational appeal of the mother brands, as well as taking direct control of the customer experience through owned-stores networks. • Luxury brands are finding they need to become experts in managing wide- ranging portfolios. The leading luxury brands are now enormous businesses in their own right, and have to reconcile the competing demands of the artistry and specialization that created the brands in the first place with the pressures of managing and generating momentum for big business. • The distinction between luxury and fashion brands is becoming increasingly blurred, which opens up new opportunities. Indeed, a common hallmark of successful luxury brands is the ability to bridge multiple product sectors. Those that stay too wedded to their roots risk being left behind. Standing still is not an attractive option. • Finally, the increasing accessibility of major luxury brands (whether it is through growing store networks, wider product ranges and prices, or successful social media initiatives) is creating opportunities for niche, super- exclusive brands to spread their wings. It will be fascinating to see how the future competition between Rolex and Patek Philippe will develop, for example. The one certainty for the luxury market is that the appetite of the world’s middle and upper middle classes for luxury products is a long way from being sated. Article is reprinted with permission from a June 2012Warc exclusive, www.warc.com/ Emerging Luxury Strategies
  • 55.
    hen the CostaneraCenter is inaugurated, not long from now, Chile will have the tallest building in Latin America. The 70-story tower is part of a mixed-use complex of retail and shops in the financial district of Santiago. Chileans refer to the area as “Sanhattan,” a reference to Manhattan and a symbol of how rapidly the country is reaching higher levels of development, with fast highways, enormous shopping malls and tall skyscrapers. As income increases at all socio-economic levels, people throughout Chilean society enjoy greater access to products and services that in the past were out of reach for many. Cars, smartphones and electronic devices are widely available. Going out to dine or have a drink is no longer restricted to a few; flying domestically or even abroad is not only a privilege of the richest. And the consumer has become more engaged with technology. Mobile phones have long exceeded 100 percent penetration; many people now have smartphones. Notebooks, digital cameras, portable media players and tablets have become necessities rather than luxuries. Home computers and Internet connection are common. Chilean statistics on the use of Internet and social networks— mainly Facebook—tend to resemble those of developed countries rather than regional neighbors. That’s because the shopper needs to be connected. Social networks are already a part of daily life and consumers link to brands through them. Consumers use social networks to learn more about products and services, and most of all Grey Group is among the world’s top to contact other consumers and share experiences. Retailers extend influence Retailers have a lot to do with all these changes. They have formalized trade, moving most transactions from the traditional “mom and pop” economy to supermarkets and shopping malls. And they’ve extended their influence throughout South America. Chilean retailers operate in Peru, Argentina and Colombia and are planning expansion to Brazil and Mexico. They also have helped improve the lives of most Chileans, providing greater access to products by providing credit. Retailer credit cards are accepted widely and are twice as numerous as bankcards. Economic progress recently has been punctuated by several major scandals involving retailers and by protests against the government demanding greater equality of opportunity. The retail scandals involved a pharmacy charged with price fixing and a clothing retailer accused of revising credit debt without informing its credit card customers. Students have held street demonstrations arguing for a more equitable education system. W By Rodolfo Levin, General Manager Cadem Advertising, Millward Brown A nation of connected consumers symbolizes “Sanhattan” new Chile in South America, and in many ways follows the trends of more developed markets. Most Chileans access the Internet by PC, although 13percent of Chileans now access it via mobile. Time online is heavily focused on communication and entertainment, with 6.6 hours a week spent on social networks such as Facebook. Chileans particularly like consumer-generated videos, more often than not shared on YouTube. And 45 percent of the online population view these videos on a weekly basis compared with only a third of consumers who view professionally created videos. In most markets, consumers decide to become a friend of a brand because of a special offer or promotion. In Chile, however, 41 percent of consumers are more interested in finding out further information about a product or service. Chileans are less active in both writing and reading about brands on the Internet, compared with consumers in many other countries. However, 41 percent of Chileans use a brand website during the purchase journey, indicating that companies must provide sufficient brand and product-related information for the consumer both pre and post purchase. Brand websites influence purchasing TNS Digital Life Figure 1: Internet Investment 2005 2006 2007 2008 2009 2010 2011 40bi 35bi 30bi 25bi 20bi 15bi 10bi 5bi 0 30% TV still receives more than 50 percent of media investment in Chile, but Internet is growing sharply because such a large proportion of the population has Internet access and is engaged on social networks. Internet investment reached 35 billion Chilean pesos (US$68 million) in 2011, compared with only 5 billion Chilean pesos (US$10 million) in 2006. Source: Mindshare, ACHAP (Acociación Chilena de Agencias de Publicidad) Investment(ChileanPesos) 6.6 Social Networking 2.8 Email 1.6 Multimedia & Entertainment 1.0 Online Gaming 2.1 Personal Interest 0.2 Shopping 0.4 Pre-purchase Browsing 2.0 Knowledge & Education 1.3 News, Sport & Weather 0.6 Personal Admin 0.7 Planning & Organising First published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report People in Chile predominately spend their online time engaged in communication, particularly social networking, and entertainment. This devotion to social networking is consistent throughout Latin America compared with other parts of the world. For brands it provides opportunities to connect with consumers through social networks or entertainment 24/7.
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    onsumers in Colombiaare rapidly becoming more engaged with brands. The change reflects the country’s new economic reality. Consumption in Colombia increased 12.8 percent during 2011, and GDP grew 6.1 percent, according to Colombia’s National Federation of Traders (FENALCO). The country’s overall economic development, including increased foreign investment and consumer access to credit, continues to stimulate strong growth. As consumers encounter brands more often at many multi-channel touch points, Colombia is shifting from a country where consumers simply purchase products to a market where consumers identify with brands. This heightened awareness of brands has created a more demanding shopper and a more complex marketplace with brands competing to best understand shoppers and most effectively meet their needs and wants. Time spent on social media grows An important cultural shift—increased technical literacy—informs this greater involvement with brands. As PC use and Internet access expands rapidly, the exposure to information and knowledge produces profound societal change. In the last 15 years, Colombia transformed from a closed country to a partner in free trade agreements with some of the world’s largest markets. Internet and cable TV superseded television as the preferred electronic medium, providing Colombians with wider exposure to products and services—and brands. More than 96 percent of Colombia’s online population uses social networks sites, according to ComScore. The use of social networks to communicate with consumers is experiencing double-digit growth, according to the Colombia’s Interactive Advertising Bureau. Also, among all countries in the world, Colombia ranks seventh in numbers of hours spent on Facebook, averaging 8.4 hours per month, surpassing even Mexico and Brazil, according to the 2011 Firefly Millward Brown global study of social media. This penetration reflects how social media connects with a national culture that values entertainment, social connections and a sense of belonging. Great opportunity awaits brand marketers These findings have driven increased interest by brands to better understand how to develop the appropriate digital strategies to maximize ROI. Brand marketers have a great opportunity to reach Colombian consumers on social media for two reasons. First, Colombian consumers are actively engaged in social media. The country has one of the highest Internet penetration rates in the region. Second, the country has one of the lowest investment rates in digital media. In 2011, only 0.9 percent of the communication investment was in digital compared with 7 percent in Mexico and 6 percent in Brazil, according to GroupM research. There probably are several reasons for this disconnection between the high level of consumer digital engagement and the low level of investment. The most likely explanation is that Colombia’s image, as a country gripped by violence, has not caught up with Colombia’s new reality as a fast growing economy. The conclusion for brand marketers should be clear: In Colombia, there’s a large group of potential customers online who are interested in brands and there’s relatively little clutter preventing you from reaching them. C By Gabriel Castellanos Managing Director Andean Region, Millward Brown Colombia EconomicGrowth DrivesBrandAwareness Marketers reach consumers with social media First published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report
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    razil’s rising middleclass increasingly drives the growth of brands. More than 100 million people, or about half the country’s population of roughly 191 million, now are considered middle class. These households earn an income of at least 1,128 Reais per month (US$727), which locates them in socio-economic Class C, Brazil’s official designation for middle class. Many of these households have recently risen from poverty, which the Brazilian government calls Classes D and E. Households in Class D earn around 798 Reais per month (US$514); those in Class E earn less than 486 Reais (US$313). Even with fluctuations in the economy, these changes are narrowing the inequities of Brazilian society, expanding the number of people in the middle while reducing the ranks of both the very poor and the very rich, and exposing many more people to consumer goods and brands for the first time. pOLiCiEs and prOgraMs drivE ChangE The economic stability resulting from the Plano Real (1994) drastically reduced the runaway inflation of prior years to acceptable levels. With inflation under control, Brazilian consumers feel more inclined to save or purchase on credit. Other factors that contribute to the health of Brazil’s economy and the overall rise in income and purchasing power include: • The steady growth of GDP (US$2.2 trillion; US$10,800 per person), demonstrating the evolution of the country’s productivity; • The availability and ease of obtaining credit; and • The strength of the Brazilian Real, which facilitates access to imported brands and opens up the possibility of tourism outside country. Particularly significant is the government’s anti- poverty program called Bolsa Família, which provides supplemental financial support to more than 12 million underprivileged families throughout Brazil. The families access the funds with a government-issued ID that acts like a debit card. Bolsa Familia changes how people shop and increases their purchasing power. Using the card frees a family from shopping daily with available cash or being dependent on store- issued credit, sometimes at high interest rates. Brands OFFEr MOrE than BasiCs Brands traditionally treated the middle class as if it represented limited sales potential. Brands served these consumers with simpler packaging and smaller sizes, offering the basic benefits of the respective category and no added value, with the intention of keeping prices affordable. Today, the nature of the middle class has changed. Middle class individuals desire premium products and can afford them. They consider high added value brands as a basic part of the household needs. Brazilian consumers prefer the leading brands, with appealing advertising, strong equity and good distribution. Disposable income not only has increased purchasing, it has changed the composition of the shopping basket. Certain items, such as dairy cream, ready sauces, facial and body creams, seasonings, chocolate mixes and yogurts, had been purchased only occasionally. Now they are part of the family’s habitual grocery list. MOrE Luxury gOOds and sErviCEs avaiLaBLE Shoppers fill “wants” as well as “needs.” Beauty and cosmetic retail departments are more prominent, even in stores with lower income clientele. Similarly, the number of salons recently opened in less privileged neighborhoods is extremely high as women increasingly spend money to beautify their hair and nails. They believe that spending on appearance is an investment and part of the process of social inclusion, according to qualitative studies by Firefly Millward Brown. Economic stability also has opened up access to aspirational consumer goods. The dream of acquiring a brand new, low-priced car can become a reality in 60 or more installments with few formal prerequisites. The payment of the installments—“the amount I am able to pay”—is viewed as a form of savings, even if the interest rate and final total amount paid can be excessive. Getting into debt, making too free use of credit or credit cards has always been a serious threat for those with limited financial means. Credit has become an option, however, because of reliable employment and income stability. Despite easy access to credit and the widespread availability of credit cards, lower income consumers remain somewhat skeptical of the financial institutions that denied them credit in the past. thE nEW MiddLE CLass has ChangEd rEtaiLing The collective clout of middle class consumers has influenced major retailers to reevaluate their standard formats and focus their efforts on the growth of so-called “atacarejo,” a hybrid model combining wholesale and retail in no-frills megastores. At the same time, the major retail groups have begun to invest in smaller stores with limited assortment intended to conveniently serve the more immediate needs of local residents. Regardless of expectations about the global economy, Brazil’s new middle class is not a passing phenomenon. It expects much and its expectations will influence brands and corporate strategies for a long time. B By Aurora Yasuda Business Development Director, Millward Brown Brazil And how new expectations impact brands TheRising MiddleClass First published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report
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    exico offers excellentconditions both for business and investment. With over 113 million inhabitants, Mexico is the largest Spanish-speaking country in the world. The population is geographically concentrated. One- quarter of the nation lives in one of three cities. About 20 million live in Mexico City. Guadalajara and Monterrey each have over four million inhabitants. With a median age of 26, Mexico is relatively young. And people are connected, with 94.6 million mobile phone numbers and 11.5 million cable and satellite TV homes. Internet users total 34.9 million. Open to international trade, Mexico ranks second in the world in number of free trade agreements. These agreements grant Mexican businesses preferential access to over one billion customers in 43 countries. Mexico is the world’s largest silver producer and ranks sixth in oil production. It’s a major tourist destination, having the most UNESCO World Heritage Sites in the Americas and ranking fifth worldwide. By 2020, Mexico will become the world’s seventh largest economy, contributing 7.8 percent to global GDP, Jim O’Neill, Chairman of Goldman Sachs Asset Management, predicts. He based this prediction on the fact that, despite the recent global financial crisis, Mexico’s economy has maintained its stability and in several variables has shown evident signs of recovery. Economy evolving to innovation focus The Mexican economy is evolving to the third and most evolved stage of economic development, a focus on innovation, according to the Global Competitiveness Report 2011-2012 of the World Economic Forum, which places countries such as Argentina, Brazil and Chile in the same category. The report also credits Mexico for reducing government regulations and improving the conditions for doing business, although it notes that security continues to be a difficult issue. Many companies that have transferred their manufacturing processes to Mexico say that the country reduced their labor costs significantly. They credit the country’s infrastructure for helping to optimize distribution costs. That infrastructure includes 26 domestic airports, 59 international airports, 16 international seaports, 27,000 kilometers (16,800 miles) of railways, 123,000 kilometers (76,000 miles) of roads and 52 crossing points to the US. Changes influence brand trends These economic changes influence brand trends. “Olympic” brands such as Coca-Cola and Apple are still the most popular among the general population. However, there is a large group of brands that is migrating towards a “Niche” or “Specialist” space in which they serve a specific group of people. In a country as large as Mexico, it’s hard to find brands that appeal to the entire population. Two recent brand trends reflect changing consumer living styles and focus especially on two areas: practicality and personal health. People are busy. They hardly have enough time in a day to get things done at home or at the office, care for family and friends, and then find time for themselves. They look for time-saving products that help them better manage their busy lives. This practicality is apparent in products like ready-to-eat meals, such as granola bars and drinkable yogurts, as well as in all-in-one shampoo and conditioners and fast-dry, long-lasting nail polish. People also now realize that while leading busy lives they’ve adopted some unhealthy habits. They’re looking for ways to improve personal health. This interest can be seen in products such as vitamin-enhanced cereals, body lotions made with natural ingredients, low-sugar soft drinks and chocolate bars and more natural foods. TV remains key, but Internet growing fast Of all product categories, personal health leads in advertising spend, followed by cellphone services and banks. Genomma Lab, a pharmaceutical company, is Mexico’s number one advertiser, spending more than P&G, Unilever, Colgate-Palmolive and Bimbo, the bakery brand, together. TV remains the predominant media channel with overwhelming dominance. TV accounts for 62.5 percent of advertising media investment compared with radio, its nearest rival, at 9.1 percent market share. The other channels and their shares include: outdoor, 8.9 percent; newspapers, 7.8 percent and Internet, 6.9 percent. Internet is growing at the fastest pace, with 17.8 percent year-on- year growth in 2011, followed by cinema at 14.9 percent growth and outdoor at 8.9 percent. TV spending grew 5.4 percent in 2011, after three consecutive years of decline. By Fernando Alvarez Kuri, Director, Millward Brown Optimor M LargeandOpen MarketOffers Opportunity New consumer trends emerge as economy expands LargeandOpen MarketOpportunities New consumer trends emerge as economy expands First published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report
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    PP social mediamonitoring company, Visible Technologies, carried out an audit of the digital social and traditional buzz for each of the Top 100 brands over the last year. From this we have created an “Earned Buzz Index”, weighted by positive mentions, together with the Millward Brown BrandZ™ measure of online fans (FanZ Index). As might be expected, the brands with more fans created more “Earned Buzz.” But the crucial finding is that brands with more fans and “Earned Buzz” levels are much more valuable. And brand value growth is significantly better if buzz is better. The Top 10 “Earned Buzz” brands grew on average by 5 percent in value last year, while the bottom 10 declined 8 percent. The future also is brighter. The Brand Momentum Index measures the prospects of future earnings on a scale of 1 to 10, 10 being the most positive score. The Top 10 “Earned Buzz” brands averaged a score of 8 in Brand Momentum compared with a score of 6 for the bottom 10. So what are the“Earned Buzz”Top 10 brands? They are completely dominated by US technology brands, and even the one retailer, Amazon, is fundamentally a technology brand. The entertainment brand Disney is also becoming heavily dependent on the digital space. W By David Barrowcliff Specialist: Social Media Measurement, Millward Brown The 2012 BrandZ™ Top 100 Most Valuable Global Brands comprises many of the great and the good, the different and the special, and the most talked about. Buzzmeans money: Social and digital media, vital to the health of successful brands 2012 BrandZ™ Top 100 in groups of 10 by level of“buzz.” Brands with higher value have more fans and more“Earned Buzz.” More buzz and fans means more value THE“EARNED BUZZ”TOP 10 RANK CATEGORY BUZZ INDEX (average 100) 1 FACEBOOK 1,331 2 GOOGLE 1,229 3 APPLE 1,093 4 eBAY 475 5 microsoft 442 6 sony 437 7 amazon 425 8 samsung 301 9 HP 282 10 DISNEY 280 FANZ VALUE $511bn $112bn EARNED BUZZ First published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report
  • 60.
    EVERY BRAND HASA PERSONALITY. It’s part of how consumers perceive the brand and how the brand differentiates itself from the competition. Accurately understanding brand personality is important to brand success. That’s why we created a vocabulary for quantifying and describing brand personality. Recently we’ve added a related visual language called Brand Toys (Please see Brand Toys). Being able to measure something as important—but as intangible— as brand personality enables brand owners to ask important questions that can strengthen competitive advantage: Understanding brand personality also helps select the most appropriate message and media, or more effective and suitable sponsorships or partnerships. Ultimately, understanding a brand personality enables the brand owner to deliver a consistent brand experience that connects with consumers and leaves a deeper and more sustainable impression. Brand personality characteristics often suggest a brand’s latent appeal. When identified and cultivated they can effectively guide the creative tone of communications. For example, Mercedes is relatively “assertive” and “in control,” while BMW is more “sexy” and “desirable.”The brands have different and differentiating personalities. Mercedes confidently plays on its heritage with the fitting tagline, “The Best or Nothing.” In contrast, “The Ultimate Driving Machine” accurately captures the BMW personality. Background As part of our extensive and on-going global BrandZ™ research, we measure the personality of thousands of brands. We base the research on authoritative psychological personality profile testing. Adapting the results to be relevant for brands, we ask, if the brand were a person what kind of personality would it have? We begin with 20 personality characteristics. Then we combine the characteristics into 10 brand personality archetypes (Reference Brand Archetypes chart below). For example: The related personality characteristics “generous” and “caring” combine into the brand personality archetype “Mother.” Similarly, we use the brand archetype “Hero” to represent brands that are “adventurous” and “brave.” Brand archetypes Then we take one more step. After combining brand personality characteristics into brand archetypes, we show how the archetypes relate to each other by lining them up along two axes: the polarities of one axis are stability and change; the other, well-being and challenge. For example: The archetypes “Dreamer” and “Joker” are associated with change, while “King” and “Wise” are more about stability. Similarly, the archetype “Mother” represents a mix of stability and well-being, while a “Seductress” is both challenging as well as a potential driver of change. Brand personality characteristics often suggest a brand’s latent appeal. Mercedes is relatively “assertive” and “in control” while BMW is more “sexy” and “desirable” By Peter Walshe Global BrandZ™ Director, Millward Brown CHANGE STABILITY CHALLENGEWELL-BEING Is the personality consistent worldwide? If not, how does it vary? Is it unique and can it become more unique? What is the brand’s personality? Brandpersonalitycharacteristicsarecombinedinto10brandarchetypes, whicharethenarrangedaroundtwoaxes.Source: BrandZ™ data Mercedes’assertivepersonalityinfluencestheircreativetone BrandArchetypes BrandPersonality Unlocking key traits for success and value JOKER Fun, playful SEDUCTRESS Desirable, sexy REBEL Rebelious HERO Adventurous, brave WISE Trustworthy, wise STABILITY In control, assertive MOTHER Caring, generous FRIEND Straightforward, friendly MAIDEN Innocent, kind DREAMER Idealistic, different, creative
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    Archetypes and success Brandarchetype doesn’t by itself determine success. And successful brands can fit anywhere on the spectrum of archetypes. But inevitably some brands are just more compelling. The recent BrandZ™ Strength of Character analysis of over 14,000 brands worldwide identifies several archetypes that, in diverse ways, are associated with brand success. The “Wise” archetype (particularly trustworthy) is most unequivocally correlated with brand success. “Wise” brands include Google, China Mobile and Visa. The Seductress brand (sexy and desirable) is more of a specialist but revels in being distinct, different and attractive. It describes L’Oreal, Louis Vuitton and Zara. In contrast, the “Maiden,”“innocent” and “kind,” is not as strong. Many retailer own brands fit this brand archetype. “Friend” brands are “friendly” and “straightforward”, and usually very well known. They include Airtel, the Indian telecom, Home Depot and KFC. But “Friend” brands generally are declining in equity. Archetypes and equity Brand archetypes correlate with brand equity. Brands with these archetypes— “Seductress”, “Wise,”“King” and “Mother”—typically have strong brand equity. In contrast, brands with “Joker,”“Rebel” and “Maiden” archetypes have lower equity. There are exceptions, of course, but the rule is useful (Reference Strength of Character chart below). On average, the BrandZ™ Top 100 most valuable global brands fall in the middle of the Strong Equity quadrant of the Strength of Character map, between the “Wise” and “King” with a strong dose of the personality characteristic “desire,” which is an aspect of the “Seductress” archetype. In personality, the Top 100 brands are on average, significantly more “in control, “assertive,”“trustworthy,” “wise” and “creative.” In terms of brand archetype, the Top 100 can be summarized as “Wise Kings.”This summary is especially true of the B2B leaders. IBM, is a “King” because of its high levels of “trust” and “wisdom” together with its “idealistic” positioning. Exxon Mobile is also a “King” but less “idealistic” and much more “assertive,” while Royal Bank of Canada is an “in control”“King.” As noted, there are exceptions to the rule and they include some of the most valuable brands that define their category. As the approachable “Joker,” Facebook is “fun,”“playful” and “friendly.” The “Dreamer” Apple is “creative,”“adventurous” and “desirable.” Red Bull, the “Rebel,” is “adventurous” and “brave,” if a bit “arrogant.” Being “straightforward,” which implies honesty, is a key characteristic of the “Friend” archetype, which describes Amazon because of its great service, range and recommendations. Being seen as “generous,”“kind” and “caring” makes Colgate the ultimate “Mother” brand archetype. Understanding a brand personality enables the brand owner to deliver a consistent brand experience that connects with consumers and leaves a deeper and more sustainable impression Strengthofcharacter GROWINGEQUITY STRONGEQUITY DECLININGEQUITY CHANCESOFSUCCESS RELATIVEFAME TOP100AVERAGE LITTLEEQUITY Brandarchetypescorrelatewithsuccessandequity. Source: BrandZ™ data Brand Personality
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    Brand Personality Brand Toysprovide a new tool for understanding brands As visual representations of brand personality, Brand Toys stimulate creative thought that can lead to new marketing and strategic insights. Brand Toys are created based on brand personality characteristics from BrandZTM data combined with an index of social media buzz. This information dictates the Brand Toy’s size, shape and expression. Eyes widen to indicate charisma, while height increases and legs thicken to project trustworthiness, for example. Various body shapes signify the brand’s potential and its familiarity. Expressions change or accessories are added to suggest various qualities. Depending on style, a hat might symbolize assertiveness or caring. For example: BrandZ™ data says Coca-Cola is particularly“desirable,”“adventurous” and“fun.”The Coca-Cola Brand Toy has the sunniest disposition, a“smiley”badge, a “lipstick” kiss on its cheek and is clearly a fun toy. The Brand Toys visualization is as effervescent as the drink. It overflows with smiles. Although the Coca-Cola brand is more than 125 years old, its Brand Toy reflects the ever-youthful image that helps Coca-Cola hold its own in brand value with newcomers such as Google, Amazon and Facebook. It commands a good price premium but is rated as very well priced because of the immense desire the brand creates. Happiness for the shareholders comes in an investment that is Coca-Cola shaped. In contrast, UPS, which is particularly “in control,” “trustworthy” and “wise,” is an approachable hulk, with thick trustworthy legs, bright open eyes suggesting considerable charisma, and a careful tie and prize winning ribbon, which also recognizes trust. The Brand Toy is holding a timepiece to show reliability and punctuality in taking care of you and your shipping. www.brandtoys.com First published in the 2012 edition ofWPP’s BrandZTop 50 LatAm report
  • 63.
    d effectiveness studieshave been used for more than a decade to measure the branding impact of online campaigns. Results from these studies, as well as aggregate industry knowledge, have helped advertisers design better media plans for future campaigns. Enter real-time data, which allows us to learn what’s working in a specific campaign, and make changes while it’s still in market. These changes help advertisers save money by reducing wasted, ineffective impressions and ensuring that the right message is delivered to the right consumers. But, there are rules that should govern the correct way of optimizing online branding campaigns and at the end of the day; optimization is part data and part instinct. The numbers alone shouldn’t be the exclusive guide to your decisions. Common sense and experience are often just as important and should guide you through the following considerations for campaign optimization: DEFINE CAMPAIGN SUCCESS CRITERIA AND KEY PERFORMANCE INDICATORS How will you know that your campaign is effective or not effective? What should you be looking for? Is any incremental increase in the metrics going to be sufficient? These are all important questions to answer prior to making any changes to your campaign mix. When assessing performance of sites or creative formats, benchmarks are inherently built into the campaign because you can compare each one against each other. However, shifting impressions around within a failing campaign is a waste of time. Campaign-level normative benchmarks are useful to assess whether your campaign, as a whole, is among the top or bottom performing campaigns in the brand’s industry. Normative databases can be used for benchmarking as well as planning what magnitude of change to expect. It’s important to use not only normative data, but also your own experience with the brand, to create hypotheses of what results you expect from the campaign. This will give you something specific to test against. Often, testing a more quantitative goal, such as “increase purchase intent by X points,” results in more insightful findings than just “increase purchase intent.” ASSESS WHAT YOU HAVE THE POWER TO CHANGE Sites’ insertion orders usually include an impression level commitment, so a change as drastic as pulling a site from the campaign usually isn’t possible. However, agencies can usually move impressions across sections or placements within a site. Agencies with longer-term site contracts can also sometimes shift impressions from one campaign to a future campaign if the site appears to be a poor fit for the campaign in question. If there are multiple creative executions in the campaign, agencies can easily shift impressions between iterations, especially within the same size unit. If a campaign is really performing poorly, though, often a change to the creative design is needed. Ideally, creatives should be pre-tested to ensure that the best executions go into field to begin with, minimizing subsequent changes. There is a lot of emphasis in our industry on mid-campaign adjustments because online creative can be redesigned inexpensively and relatively quickly. The reality, however, is that this seldom happens and results in a lot of money being wasted on ineffective media. The best practice is to put pre-tested creatives into field, and include the creative agency in your optimization plan so that they can be “on call” to make tweaks to the design if the results suggest it’s needed. When setting up an ad effectiveness study for your campaign, remember to communicate to your research partner what types of changes you’re considering so that they can design an appropriate sampling plan, survey, and results dashboard against the objective. A By Michelle Eule Senior Vice President, Digital Solutions, Millward Brown Ideally, creatives should be pre-tested to ensure that the best executions go into field to begin with, minimizing subsequent changes WhyOptimization isPartDataand PartInstinct
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    MINIMIZE CHANGE The abilityto optimize should never replace thoughtful media planning prior to the campaign. Throwing everything in and waiting to see what works will result in a lot of wasted media spend. The best campaigns will usually be those with the best initial media plan, and optimization will involve simply fine-tuning the mix. Complete overhauls should be limited to rare disasters, and most campaigns should require limited changes. DON’T MAKE HASTY DECISIONS It’s tempting to start making changes just a few days into a campaign in order to benefit early from optimization and reduce waste. But, branding effects don’t set in overnight. Frequency is one of the most important factors in campaign performance. A comparison of message association impact on CPG campaigns shows incremental increases in impact from the first exposure to more than 10 exposures. Lauren Hadley, associate director of integrated insights at Starcom says, “Let the campaign build how it was planned to build. Don’t optimize prematurely.” Optimal frequency levels vary by industry, brand tenure, campaign objective, and even creative format. For example, the results in the chart above suggest that changes shouldn’t be made before at least four exposures have been delivered to a majority of a CPG campaign’s audience. Analyze historical normative data to home in on the optimal frequency level to expect for your brand’s campaign. KNOW WHEN TO SAY“WHEN” Don’t over optimize. Observe, change, observe. Stop. Observe, change, observe. Stop. We recommend two sets of optimization periods per three-month campaign. USE TRUSTED DATA Be cautious about the quality of the data that you’re using. Don’t be tempted by cheap studies that sacrifice the quality of the data that’s delivered. Shorter surveys are best for optimization because they garner higher response rates and, therefore, earlier results. But a survey that’s too short and only asks one or two questions can leave you in the dark about who the audience is, and whether the results are reliable. In ad effectiveness studies, it’s critical that the control and exposed groups are recruited from the same sites and have similar audience profiles. Demographic and category usage questions, and some amount of weighting, are usually needed to further match the two groups. Look for a research vendor that weights the data in real-time so that you can view valid data at any point during the study. TRAIN MEDIA PLANNERS ON HOW TO USE SURVEY DATA Unlike clickthrough data and other sources that are collected at the impression or user level, interpreting survey-based data requires expertise. Individual data points might represent mere anomalies, so conclusions should be drawn based on larger samples and repeated trends. If a particular creative unit on a specific site is performing well, look to see whether other units of that size, or other units on the same site are performing similarly. Also look at whom that unit is reaching. Is it reaching the desired target audience, or is it being delivered to many people who are not relevant to the brand? Sample size is also critical. We suggest a minimum of 50 respondents per cell before making any decisions. With a smaller sample size, the results are very unstable and each incremental respondent can shift the data quite drastically. CONSIDER THE RELATIVE COST PER PLACEMENT When evaluating the relative performance of each creative, site or placement, consider the relative price paid for each. While video units may often perform better than standard display units, for example, the higher cost may not justify the incremental branding impact. According to Joe Rose at MediaVest, “Cost-per- increase is a better measure of success than branding metric increases on their own, and is more in line with how we interpret performance for direct response campaigns.”When designing a branding effectiveness study, talk to your research partner about incorporating prices to calculate cost-per-increase metrics. Don’t be tempted by cheap studies that sacrifice the quality of the data that’s delivered First published in the May 11, 2012 edition of iMediaConnection, imediaconnection.com Exposures Control 1 2 3 4-9 10+ Why Optimization is Part Data and Part Instinct Figure 1: Strength of message association by frequency of exposure 19.9% 21.1% 21.2% 21.9% 23.3% 26.1%
  • 65.
    espite the stronggrowth of online advertising over recent years, brand advertisers continue to punch well below their weight when it comes to share of online advertising spend. New Australian data from Dynamic Logic, a Millward Brown company, has found that while online advertising can help to build brands, advertisers need to understand the balance between impact and over exposure, particularly when it comes to the use of video. The MarketNorms data, which was based on more than 80 Aussie brand campaigns conducted over the last three years, has found that a strong online brand campaign can be up to four times more effective than an average brand campaign. With such a huge discrepancy, it’s worth diving deeper to understand the three key components that combine to make a strong online brand campaign. It’s worth first noting that behavior based online metrics such as impressions, clicks, and acquisitions, while important for direct response, do not measure changes in attitudes and perceptions towards advertised brands, so they should be of little concern for brand advertisers. The first element of a successful online brand campaign revolves around the use of video and rich media to create impact. Just one appearance of a video ad was found to perform better than any other treatment when it comes to persuasion, building brand favourability and increasing purchase intent. Interestingly, other high impact placements such as OTPs and skins have shown equally positive impacts in Australian online brand advertising. While the research shows that video and high impact formats support positive results, marketers need to walk a fine line. Both Australian and global data shows that with over-exposure, high impact formats can actually drive attitudes down for a brand, particularly in regards to purchase intent.  These results lead to the second element of success for an online brand campaign – integrated planning using multiple formats. The data shows that high impact placements used at low frequency but complemented with standard banner placements, can extend the life of a campaign.  The Australian data from an FMCG case study found that purchase intent increased 4.3% when pre-roll was combined with flash banners - a better result than either pre-roll or flash banners alone. The third element of success, strong creative, would seem quite obvious to most marketers but is often overlooked. In the online banner world you only have one to two seconds to grab a viewers’ attention and communicate the brand and message. All the frames of an ad will rarely be viewed as a linear story. Data from our MarketNorms database shows much stronger brand results for creative that follows two simple rules: Grab attention quickly and stand out on the page – think “visual hook”and make use of white space and simplicity. Cluttered or wordy banners often get lost on the page Make every frame of the creative work to convey both the brand and key message. Before you move to dismiss these elements as self evident consider this - nearly 40% of Australian campaigns measured did not feature the brand on every frame and over half did not have the message present across the creative. With more dollars moving to digital advertising, the savvy marketers are gathering online branding insights, not just behavioral measures, to improve performance in both media and creative campaign planning. D By Mark Henning Director, Media & Digital Solutions, Australia, Millward Brown OnlineBuildsBrands, IfYouKnowHow First published in the June 2012 edition of AdNews, www.adnews.com/ 1 2
  • 66.
    Challenge Brand China’s Chinese brands must workhard to improve differentiation and overseas recognition if they are to take on the multinationals, BrandZTM data shows.
  • 67.
    TTen years ago,China joined the World Trade Organisation, and some observers say one hundred years’ worth of societal and economic transformation has occurred since. Millions of Chinese citizens have evolved into consumers, and China’s contribution to the world economy is now universally acknowledged. Chinese brands have evolved too.The 2012 BrandZTM Top 50 Most Valuable Chinese brands ranking was published in December 2011 by WPP and Millward Brown. Six of the Brands in the ranking, collectively worth $50 billion, didn’t exist 10 years ago. In the 2011 global ranking, the BrandZTM Top 100, 12 of the top 100 brands are from China. But it is not all smooth sailing for Chinese brands.They not only encounter competition from multinational brands on the domestic front, but also face challenges in launching themselves overseas. The gap between Chinese brands and foreign brands is narrowing. Over the past decade, Chinese brands steadily increased in value, and the proportion of earnings driven by brand and consumer preference edged upward. Comparing 2011 and 2012 Top 50 rankings, 16 brands improved their brand contribution scores (which indicate the extent to which the brand is responsible for earnings), and none declined. This shift demonstrates Chinese brand building achievements: improvements in innovation, marketing, image building and the ability to keep pace with rapidly changing consumer expectations for improved products and services. An example is the online portal Sina, which created the Sina Weibo Microblog in response to evolving communication needs in the internet era. Not simply a Twitter clone, Sina Weibo is adapting to the market, and its success is reflected in its ranking. Mengniu, a dairy brand, tackles food safety fears by emphasising its healthiness. Fulinmen, a producer of edible oil and rice, conveys a brand personality evoking a mother’s concern over the health of her family. Sportswear brands such as Anta and 361° have achieved massive brand salience and have a formidable head start on multinational brands such as Nike and adidas in lower-tier cities. By Jason Spencer, Managing Director, Shanghai, Millward Brown, Sirius Wang, New Solution Director & AMAP Knowledge Manager, Millward Brown and Adrian Gonzalez, COO, AMAP, Millward Brown China’s Brand Challenge Source: BrandZ™ database FIGURE 1 Creating meaningful difference is still the biggest challenge for Chinese brands china top 50 brands having a clear image and being different 50% 70%GLOBAL top 100 brands
  • 68.
    Among the ChineseTop 50, half the brands achieved a score in the top tertile on one or both of those dimensions, while among the Global Top 100, 70% achieved such scores. Chinese brands are still seen as cheaper, while foreign brands are considered different in a meaningful way. Every brand must have a purpose. It must resolve a consumer need, which may be functional, emotional, aspirational or, increasingly, societal. And brands that do this in ways that are meaningfully different from other brands have the opportunity to build significant value. Yunnan baiyao, a brand with a century-long heritage of traditional medicine, is an example. Its brand value comes not just from heritage, but also from the differentiation that heritage can confer. Brands that can genuinely claim a long and unique history and combine that history with meaningful differentiation can build brand relationships with consumers that are strong enough to sustain premium prices and withstand threats from imitators. Pingan, China Merchant bank and Hainan airlines are also good examples of differentiating from local competition by emphasizing customer service. Chinesebrandsarelesslikelytoachievehigh scoresonhavingaclearimageandbeingdifferent everybrandmusthave apurpose.Itmust resolveaconsumer need,whichmaybe functional,emotional, aspirationalorsocietal China’s Brand Challenge Multinational brands have already felt the increasing success of Chinese brands. A recent survey by The Economist, conducted among 328 senior executives at non-Chinese MNCs, found that only 22% of respondents considered Chinese firms “not a threat”. That’s a third of the percentage who were unconcerned about Chinese brands in 2004. The BrandZTM database – the world’s largest brand equity database – shows similar findings. Conducted in China since 1998, the BrandZTM study has surveyed over 350,000 consumers on more than 1,000 brands, and over time the data shows a narrowing gap between Chinese and foreign brands. This is especially apparent in the second- and third- tier markets, where Chinese brands dominate many categories. SPOT THE DIFFERENCE ‘Meaningful difference’ is still the biggest weakness. Chinese consumers are becoming more demanding and discerning in their brand expectations. They are increasingly judging Chinese brands against the large array of foreign brands now in China and are expecting them to deliver more than just price and category entry benefits. However, even though BrandZTM shows that the gap between Chinese and foreign brands is narrowing in China, a gap still exists. Chinese brands are less likely to achieve high scores on having a clear image and being different.
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  • 70.
    China’s Brand Challenge GOINGGLOBAL Success in their enormous domestic market has allowed many Chinese brands to gain enough strength to enter international markets. Nearly half of the brands in the 2012 Top 50 have overseas revenue that accounts for more than 5% of their total revenue. Lenovo, one of the most well-developed of China’s global brands, makes about 50% of its income from overseas and is now the world’s second-largest PC manufacturer. However, Chinese brands still have very low awareness among foreign consumers. Beginning in 2010, Millward Brown conducted two large-scale studies to understand the performance of Chinese brands in overseas markets. When people outside China were asked to name Chinese brands, 83% could not name one. Clearly the main problem facing Chinese brands abroad is familiarity. BrandZTM results indicate that in any market, to become a leading brand, an awareness level of at least 90% is necessary. Chinese brands still have a long way to go in international markets. Interestingly, developed and developing countries did not show much difference in their familiarity of Chinese brands. Apart from neighboring Malaysia and Australia, countries that are relatively familiar with Chinese brands, developing and developed countries have very limited knowledge of brands from China. MATCHING THE MINDSET However, our global study found differences between developing countries and developed countries in some categories, such as mobile communications, financial institutions and insurance. Chinese brands in these categories are not accepted in developed markets, but have some success in less-developed countries. To be successful in overseas markets, Chinese brand managers need to recognize that foreign consumers have a different mindset than Chinese consumers. Chinese brand managers will need to develop a global perspective and adjust their thinking and strategies if they want to make foreign consumers feel comfortable with Chinese brands. One of the common misconceptions held by Chinese brand managers is that the unique cultural elements that support their brands’ success in China can be rolled out globally. This is not often practical. Chinese provenance may be acceptable in some categories, such as apparel, where China’s heritage may be an advantage, but in other categories, such as consumer electronics, China is still perceived as an OEM (original equipment manufacturer).
  • 71.
    First published inthe March 2012 edition of AdMap ©Admap www.warc.com/admap China’s Brand Challenge InChina,consumer loyaltyisdrivenby perceptionsofpopularity Chinese brands also face another challenge: consumer-brand relationships are driven by different factors in different countries. In China, consumer loyalty comes from perceptions of popularity and what the brand communicates to the world about the consumer. Products and marketing campaigns are crafted to convey this. However, in developed markets, consumer loyalty is derived from a more personal relationship with a brand. Consumers care less about status than about having their own personal needs met. There are always exceptions, but Chinese brand managers only need to look at the mistakes that multinational brands made in their early days in China to understand that misunderstanding consumers can hurt brand building. If they are to succeed overseas, Chinese brands must develop emotional connections with foreign consumers.Take a recent campaign for Haier in Australia. In a series of advertising campaigns for refrigerators, washing machines and other products, Haier leveraged its brand image of low price into an advantage, addressing the needs of more practical customers. It conveyed the idea that Haier allows consumers to have more money to spend on other pleasures, since they don’t have to pay a premium for Haier. Chinese brands have made remarkable progress over the past 10 years. Chinese consumers appreciate the quality and innovation now available to them, and those who manage multinational brands in China and elsewhere have developed a healthy respect for competitive Chinese brands. But though their growth has been impressive, Chinese brands have more work to do if they are to compete effectively in global markets. Their work must start at home, building perceptions of meaningful difference.They need to raise awareness among foreign consumers and recognize the varying mindsets and attitudes towards brands in other countries. A one-size-fits-all marketing plan will not be effective. However, the China Top 50 ranking showcases a number of Chinese brands that are acquiring and honing the skills that will make them successful overseas.
  • 72.
    hen you canconnect with friends all over the world on Facebook and familiar brands greet you in malls across the globe, it is tempting to think that the time is right for truly global campaigns. Ones that are originated and implemented in the same way everywhere. But the superficial evidence belies significant differences across markets. So, unless your brand is one of the few that targets a homogenous global audience, then you must plan from the ground up and your measurement should reflect that local mindset. The “think global, act local” mantra applies to all aspects of the planning process, from identifying a common global platform on which to build a campaign, to assessing its in-market effectiveness. Today, many brands aspire to implement consistent, global communications platforms that drive sales, boost brand strength and have a real impact on the bottom line. Expecting the same efficiencies that are realized in manufacturing, operations and supply chain standardization companies hope to use the same advertising strategy and executions around the world. But all too often the results are disappointing. A campaign that had great promise in one region fails to move the needle in others. The problem is that, while many companies operate on a global basis and have become accustomed, if not comfortable, with working across countries and cultures, most consumers live very local lives. They shop locally, drop their kids off at the local school and hang out with friends at the local bar. More importantly, they watch local television stations, read local newspapers, and, increasingly, surf local digital content. It is not just a matter of which media channels to use. Media consumption differs by country even within channel. In London, most people commute by bus or the Underground, so smaller posters predominate. But in cities such as Los Angeles, where commuters spend hours on clogged highways, bigger billboards are the norm. And in São Paulo, outdoor advertising is banned altogether, forcing marketers to seek alternatives to reach their audience. Media buying is forced to reflect the diversity of local markets. Even if we wanted to reach a pan-European audience, the resulting plan would be a patchwork of different channels and properties. There are very few media properties with even regional reach. And, in spite of many advertisers’ desire to use the same executions across countries, advertising effectiveness reflects the same diversity. Our research suggests that very few creative executions have the ability to effectively transcend differences in brand status and cultural boundaries, no matter how much advertisers might wish otherwise. If the role of planning is to bring the consumer into the process of developing advertising (content and media), then it needs to start with the local markets and work up, combining knowledge of the target consumer within category insights, competitive reviews, and cultural understanding to synthesize an effective campaign that will work across countries and cultures. By Nigel Hollis Executive Vice President & Chief Global Analyst, Millward Brown W GlocalEvaluation: MeasuringEffectiveness Global campaign effectiveness needs to be measured locally, from the ground up, not the top down Our research suggests that very few creative executions have the ability to effectively transcend cultural boundaries
  • 73.
    Measure from thebeginning If global planning starts from the ground up, so too must our measurement of its effectiveness. And that means starting at the beginning of the development process, not just when a campaign runs. Unless the strategy and creative idea are relevant and resonate with the intended audiences, the finished campaign is unlikely to prove effective. Increasingly, advertisers are seeking to identify a communications platform that will inform all creative executions irrespective of media channel or country. But identifying a big idea is a big task even before you contemplate the complexity offered by different countries and cultures. Dove’s Campaign for Real Beauty resonated well in Anglo-centric cultures but failed in Asian cultures, where concepts of beauty are still defined by outward appearance. A big idea fails when it is incomprehensible viewed through a different cultural lens. Research of all types – qual and quant, observational and interactive – can all help inform whether or not an idea is likely to work across cultures. In order to develop a global positioning for its Powerade brand, Coca-Cola adopted a two- stage approach. In the first stage, respondents used an online forum to discuss their sports participation and give their reactions to different Powerade positioning concepts and the extent to which these resonated with their own experience. Insights from this research were then used to refine five concepts for the next stage of quantitative research. Importantly, the first stage helped shift the focus of the campaign away from “winning” to a globally resonant theme of “performing at your best”. Not only did the research inform the global decision, market-level data provides the individual markets with information on how best to implement the campaign in the way that best fits the local culture and competitive context. Even when you have identified an idea that resonates consistently around the world, the next challenge is to execute against that idea. Johnnie Walker may espouse a consistent global idea of progress, but executions are developed appropriate to the local culture. If they did not, the global campaign would not be as effective. A recent ad developed for the Brazilian market shows the mountains of Rio de Janeiro transforming themselves into a giant that strides across the ocean. The slogan is: ‘The giant is no longer asleep. Brazil, keep walking.’ The ad captures the pride Brazilians feel that their country is playing a more powerful role in the world. But not every brand has the luxury of developing local content and even the largest global brands will seek to redeploy ads for markets with a lower volume potential. In cases like these, the brand must identify the execution most likely to transfer from one country and decide whether or not adaptation is necessary. Measurement can play a key role in informing decisions related to ad transference. Two main hurdles must be overcome for an execution to be effective across countries and cultures. The first is brand status. All too often an execution works in one country because it fits the local knowledge of the brand and its competitive standing. But transfer that ad to another country and the context may undermine both comprehension and effectiveness. Consistent measurement of brand equity and positioning across countries helps ensure that copy is deployed only in countries where the brand’s standing is likely to encourage success. The second hurdle is differences in culture. We have all heard the stories about ads that fail because of inappropriate translation, but far more frequent is failure due to incomprehension. For instance, many ads seek to create enjoyment through the use of humour. But what is funny in one country may be thought childish, banal or even offensive in another. And often it is the subtle things that have the most influence: values, customs or lifestyle. Unsuccessful transfer of an ad from one country to another may be determined by something as simple as an idiom that is understood in one country and not the other. The only solution, other than originating ads locally, is to pre- test ads to see whether they will be well-received by the intended audience. Importantly, the first stage helped shift the focus of the campaign away from “winning” to a globally resonant theme of “performing at your best” Glocal Evaluation: Measuring Effectiveness Johnnie Walker: “The giant is no longer asleep” aims to capture the pride Brazilians feel in their country’s more powerful global role
  • 74.
    Measure in-market effectiveness Turningnow to assessing the in-market effectiveness of a global campaign, we are once again steered back to the local level where the necessary media and sales data are measured. For this reason, brand and ad tracking, cross-media effectiveness research and econometric modeling are all conducted on a local market basis.You might expect social media listening to prove to be the exception to this rule but, in reality, measuring a global picture proves messy, not least because platforms and measurement services are regionally fragmented. And, if you care enough about a market to advertise in it, wouldn’t you like to know how the campaign is received by all your target audience, not just the vocal minority? The market-level approach allows us to understand the effectiveness of media selection and copy within country, but what about the global picture? The same campaign may stimulate a very different response across markets depending on consumer attitudes to ads, media clutter, category growth rates and brand sales elasticity. To look at a global picture, we must first compare performance with country databases and then look at normalized results to draw conclusions about campaign effectiveness. Unfortunately, this approach may seem unnecessarily complex to the end-user but it is absolutely critical if sensible comparisons are to be made between countries. For instance, on average, Scandinavians tend to be more negative in their response to advertising than Poles or Mexicans, while Indians and Indonesians tend to be far more positive. This, in part, reflects cultural differences, but also attitudes to advertising in general. This type of difference is not just apparent in attitudinal data. The sales elasticity to advertising will differ within a product category depending on the relative wealth of the population and the economic growth rate. This said, consistent patterns do emerge from the data, particularly with regard to cross-media effectiveness. Time and again - in many different countries - we see a key role of TV in “priming” mass audiences. This significantly increases response to further communications exposure in another medium. So, in that sense, we have a global “rule”. However, the clutter levels by country differ greatly, consequently changing the planned frequency needed to “cut through” and the volume of GRPs one can put behind an ad before reaching diminishing returns. This is not just about the size of the media budget and media owner deals; large sums of production money are bet, very early, on the number of ads to produce, their length, their rotation, all based on anticipating frequency and diminishing returns once deployed on TV. In a growing number of countries, there is increasing value in planning audiovisual ad exposure across TV and other media, such as online, mobile, tablet and even digital posters in Tier One cities in China. We see that digital AV adds frequency and some additional reach among lighter TV viewers. However, the returns and consequent investment levels must take into account quite different local audience penetration and a variety of online media environments, sometimes less cluttered than TV, sometimes much more. Such things change rapidly and a local eye is needed to ensure returns are maximized. Conclusion In these days of doing more with less, the message that effective measurement needs to be conducted from the ground up is unlikely to prove popular, but neither does it make it untrue. If you really want to understand how people respond to your campaign ideas, executions and in-market deployment, you have to do so at the local market level. The world is still an incredibly diverse and complex place, and if you ignore that granularity, it simply opens up opportunities for competitors to take advantage of your blind spots. Global brands are increasingly being challenged in countries like China, India and Brazil by nimbler and more culturally appropriate local brands. Their proximity to their customer gives them an important advantage, not least an innate understanding of their culture and the local media and shopping environment. If marketing communication is the equivalent of a brand’s conversation with the world, global brands must be well-informed and tapped into local culture if they are to remain successful. That means measuring effectiveness from beginning to end, and from the ground up. Global brands are increasingly being challenged in countries like China, India and Brazil by more culturally appropriate local brands There is increasing value in planning audiovisual ad exposure across TV and other media, such as online, mobile, tablet and even digital posters Glocal Evaluation: Measuring Effectiveness First published in the June 2012 edition of AdNews, www.adnews.com/
  • 75.
    ynamic Logic andMillward Brown have long known how to measure attitudes and habits as a result of any marketing activity. We do it primarily through survey-based research. In this voice, the research is guided, quantifiable, structured and replicable. With the proliferation of social media data running through platforms like Facebook and Twitter, we can now listen to another voice of that same consumer, which is observational, unsolicited, un-moderated, and completely fluid. This social voice reveals new information and thus new avenues of insight and analysis. We’ve also long known that the attitudes expressed in the survey have other cousins – opinions and actions that potentially don’t surface in surveys. The future of brand measurement is an exploration into how new social platforms and technology can garner meaningful attitudinal and behavioral insights that complement and supplement our established survey based research methodologies. It’s certainly possible that one day (perhaps not long from now) this implicit data-driven measurement could even supersede traditional survey methodologies. Where does the data come from, and what does it mean? The social data universe is hard to size – no one knows how big it is, how much there is, or in some sense, even what the definition is of social. But even as that universe expands, it’s also becoming more centralized in some significant ways. In the past seven years, Facebook has won the battle of supremacy: it definitively owns our social graph. With over 750 million users and growing, our real-life social networks, personal and professional, have been mapped. Its near-universal adoption in most countries means it’s easier to innovate without worrying about replicating those same networks from scratch with every new application or utility. Nearly every platform, whether it’s Twitter, Foursquare, or this week’s hot new startup now takes advantage of Facebook Connect, to bolster user experience and adoption, and to create more value for the service and its users. Deep integration means much more than just a rich user experience: it also means users are constantly generating a stream of data which can give us more thorough insight into habits and attitudes than we’ve ever seen before. Major brands and services have caught on – everyone from Groupon to Ticketmaster to Starwood Hotels recognizes the power of these rich data streams, and they are looking to harness them in a meaningful way that can build their brands and grow their businesses. This is the age of Big Data, and brands are eager to capitalize on it. By Anne Czernek Senior Research Analyst, Emerging Media Lab, Dynamic Logic, Millward Brown’s Digital Practice @annemosity Deep integration means much more than just a rich user experience: it also means users are constantly generating a stream of data It is understandable that brands want to leverage the power of social media to connect with their consumers. But what is the best way to do this? As it turns out, social media does truly need to be EARNED and the strongest brands must put effort into making social media work for them. Marrying social metrics to brand metrics
  • 76.
    With the Facebookidentity so thoroughly enmeshed in the development of new applications and platforms, it facilitates aggregation of this data while Twitter’s functionality as an information-sharing platform means it also captures a wide variety of data, as new platforms push select data through to Twitter. This unified social graph will give rise to new brand value generation across many categories and many platforms. Mining those platforms for explicit, implicit, and analytic consumer data will become a core measurement approach for brands. How can you measure the impact of social media through social media? If the bounds of social media and the data it generates are seemingly limitless, it becomes necessary for us as researchers to be able to identify key points of significance in that data that can serve as surrogates for the larger set. From there, we can extrapolate more broadly to measure the impact of that media on a brand. To understand how we can frame social research alongside attitudinal research, it’s helpful to think of the traditional purchase funnel. We propose, through early validation work, that just as there’s a purchase funnel that helps explain consumer attitudes and decisions, there also exists what we call a “Passion Funnel” – a parallel social research construct that helps marketers understand brand social performance in the same framework as they understand overall marketing performance. This research construct makes it possible to measure brand activity more broadly in social media. Through our VerveIndex work using Twitter data we’ve seen that using integrated platform data can yield powerful results, including insight into both campaign effectiveness and brand performance. So many other data sources flow into Twitter – from original Tweets to blogs to location data to photo and video sharing – that by decomposing the stream, we’re able to track brands across a multitude of platforms from one very rich data source. As broad as social media may be, we can isolate, identify, and amplify which elements of which platforms serve as signals for marketing success. When we identify the significance of each of these elements and assign appropriate weights, we’re able to use this data as a proxy for understanding brand performance not only in the wider social universe but also more holistically across all marketing activity. As adoption of social media becomes more widespread in the general population, marketers are also simultaneously increasing its role in their broader media mix. Social media functions as a barometer of consumer opinion; as consumers react to the mix of messages in the marketplace, whether they’re originating from TV, print, outdoor, online, or social media itself, we’re able to capture that broader reaction by listening to the social voice. The ebb and flow of marketing messages is reflected (and when done well, amplified) in social media, making it a robust data source for catching the pulse of brand performance. Yet to make sense of the breadth and depth of the big data social media affords us, it is ultimately critical to tie brand performance and marketing activity in social media back to established, standardized metrics that can function across the broader reach of media, whether that’s paid, earned or owned. Decades of research have taught us much about the consumer path to purchase, and those findings and research constructs still serve as the backbone of our industry and our understanding of it. Social media measurement is not a new research paradigm; it is another data source to help us understand and support the paradigm we use consistently across all other market research. Just as social media should be a component of a brand’s overall strategy and media mix, so should social media measurement be held to the same standardization as the rest of a brand’s measurement mix. As new platforms launch, grow and evolve, so will their data generation; for each of these data sets, we must always seek to identify a common understanding of them through a stable analytical lens. The ebb and flow of marketing messages is reflected (and when done well, amplified) in social media, making it a robust data source for catching to pulse of brand performance PURCHASE FUNNEL PASSION FUNNEL Awareness Buzz Total brand mentions and interactions A measure of conversation intensity The ratio of positive to negative buzz Words most often used in association with brandMessage BrandVox Favorability Sentiment Intent Passion First published in Kantar’s Social in Context report, Part 3, February 2012 Turning Big Data into Brand Data
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    The future of #social forbrands View conversation @duncan_southgate rand are increasingly aware that fan pages can attract large audiences and build brands. More and more people are signing up to fan pages and social media feeds around the world. A typical Facebook fan page has almost tripled in size in the past year (the average increase across all Facebook fan pages was 193% according to Socialbakers, a social media measurement company). The importance of measurement Social media is now important to many brands, but measurement practices have not yet caught up. Still not many social media marketers fully understand the return on their investment. As well as behavioural measurement to understand audience volumes and engagement, brands should look to add a layer of attitudinal understanding; firstly to understand whether fan pages are achieving brand objectives, and secondly to gain insights into how the pages can be improved. Larger scale social platforms and campaigns should also be included in multi-media measurement studies. One recent Millward Brown CrossMedia study for a European FMCG brand showed that Facebook and TV synergy was very powerful, especially for the younger core target. Only when social is considered in this wider context will brands fully understand social media’s role in the media mix. Summary There are many exciting future possibilities in social for brands which understand their audience, identify what works among them socially, and deliver against that consistently with ongoing creativity. For more of Millward Brown’s social media learning, see the Knowledge Point “How should your brand capitalise on social media?” B Fivesuggestionsfor keepingfanpagesfresh Fan pages: impactful, and growing in scale +193% By Duncan Southgate Global Brand Director, Digital, Millward Brown Integrate and enhance offline conten - Beyond the digital space, brands also need to integrate their social activity strongly with other media and promotional activity. We have already seen some ambitious examples such as Smirnoff’s “Nightlife Exchange Project”, where a major TV and online campaign drove millions of global Smirnoff fans to interact via Facebook. Even in less extreme situations, social media needs to be aware of and reflect messaging from other channels to give those messages a chance to be amplified/reiterated. Just posting the latest TV or print ad is an opportunity lost. Brands need to identify a social element in the ads and invite comment and discussion. Social can add a new layer, provide an additional back story about the making of, or provide an opportunity to flesh out a key communication point with further information. #5 Aim for seamless social - Brands need to deliver a coherent story across multiple digital platforms.This already means juggling content on Facebook, Twitter and a brand website, and perhaps on YouTube too. In the future, brands may also want to extend their presence into Foursquare, Google+ and other networks. Brands need to make key decisions about whether to devise unique content for Facebook and other social sites, how much content to leave on their own website, how to manage Facebook fans alongside website and email marketing databases, and whether Twitter has a unique role or is simply a traffic driver for the Facebook page or the brand website. Some brands have chosen to integrate their Twitter feed within their Facebook page which can encourage some cross-fertilization. Many permutations are acceptable, but a clear strategy is essential. Forums on websites have arguably become much less relevant, since these conversations are more natural in a Facebook or Twitter environment. While this means giving up some control, it increases the chances of viral spread. Viral video campaigns and social media are natural bedfellows. Old Spice and Dos Equis have shown how social media can enhance and build on already successful viral video campaigns. #4 Keeponreachingout-Brandsneedtokeepreachingbeyondcorefans to the friends of those fans. Not only does this increase the potential target audience, but this new blood will also bring new enthusiasm to the page. Facebook makes this possible via ad units which can be targeted at friends of fans. This viral spread can also potentially be achieved by crafting posts or creating content elements that lend themselves to being shared. The Facebook and Twitter “share” and “retweet” mechanisms are simple, but fans/ followers are only likely to do this occasionally, when the post/offer is exceptional, or when it will reflect well on them if they break this news to their friends. #3 Have fun with tech - Apps aren’t essential to a successful fan page, buttheycancertainlyhelp.SocialmediaenablerssuchasBuddyMedia offer many precanned apps which can be easily tailored. As other new features and technologies become available, brands should evaluate theirappropriateness.Forsomebrands,thismightmeanaviralappwhichencourages photo sharing. For others this might mean a device which takes advantage of geo- location capabilities to map fan base activities. Many social media users enjoy the latest new thing, so aim to demonstrate that your brand is at the cutting edge. Just one word of caution: don’t make your app so complex that no one can figure out how to use it! Think innovative AND intuitive. #2 Encourage creativity - Think of page managers as copy writers, not email marketers. Whilst maintaining a consistent fan page “voice” is important, encourage page owners to experiment frequently with different post approaches. What works this month may not work so well in the future, so keep probing new areas to see what content sparks most engagement. Newsfeed posts are the most viewed fan page content, so it is essential they maintaininterest.Individualpostssomehowneedtoaddup to a cohesive whole and tell a story over time. Regular features such as a weekly or monthly competition can help mark the passing of time. #1 Separate learning from BrandZ has made it clear that fan pages are not right for all types of brands, but can be really successful when run well. The relevance of fan pages varies by country, category and brand type. Brands are obviously more likely to build large fan bases in countries where there are large numbers of social media users. Beyond that we have seen that social media users in some countries such as Korea, Brazil and China are particularly likely to follow brands in social media. Some categories such as IT software/ hardware, diapers, telecomms, mobile phones and cars seem to attract more fans. And brands which are particularly creative and desirable are also more likely to build large fan bases. Once a fan base has been established, there can be massive variation in how successful those pages are at deepening brand loyalty among fans. “Value of a fan” research conducted by Millward Brown and Dynamic Logic in partnership with the World Federation of Advertisers has shown that innovation and variety are key to fan page success. Brands will therefore need to keep content fresh and provide ongoing reasons to engage if brand effectiveness is not to fall over time. So how can they manage this? First published in the 2012 edition ofWPP’s BrandZTop 100 report
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    ver a centuryago, the renowned merchandising and advertising mastermind, John Wanamaker, uttered that iconic phrase. Decades before radio and television, Mr. Wanamaker opined about the fundamental weakness with advertising – the difficulty of reaching potential consumers through traditional advertising. He didn’t have the tools or the information to make informed decisions about what advertising works best. When you think about how electricity would literally shock his world, consider how digital is affecting yours; how consumers are defining their media through new digital devices on a personal level. Digital technology (set top boxes, smart phones, tablets, PCs) links content to the consumer faster than ever before. Technology is redefining the new reality in television, and digital technologies are empowering consumers with the greatest choice of content, in the highest quality, delivered when and where it is most convenient - welcome to the consumer age of television. The challenge of evaluating advertising effectiveness today has intensified as consumers are more actively multi-tasking on digital devices, exponentially increasing the likelihood of potential lost audiences and ad avoidance. But 100 years later, we have an advantage over Mr. Wanamaker – these digital devices can “talk”. They can collect usage data and send it back. To give some context, we now collect tuning on over 2.3 million commercials – so we can see in last year’s Super Bowl if anyone actually stayed with those expensive ads. As more digital media advancements enable efficient targeting capabilities, advertisers can send more relevant messages to the right consumer. Since digital devices communicate with a high fidelity of return path data (RPD), we have an unprecedented opportunity to “mine & combine” this usage data so marketers can understand the new digital media landscape and improve their advertising effectiveness. Mr. Wanamaker was making the case to demand greater accountability for advertising. Kantar Media and Millward Brown have combined two key databases to understand the acceptance of an ad and the subsequent audience behavior when the ad appears to help minimize ad avoidance or audience tuneaway. This enabled us to provide an additional measurement system with enhanced accountability and insight for advertisers. O By Jeff Boehme, Chief Research Officer, Kantar Media Audiences Mitzi Lorentzen, Vice President, Client Solutions, Millward Brown “Half the MONEY I SPEND ON ADVERTISING IS WASTED; THE TROUBLE IS I DON’T KNOW WHICH HALF” -JohnWanamaker TurnOn,Tune In,Watch Out:How AdvertisersCan MinimizeAd Avoidance
  • 79.
    Commercial Audiences AreNot Traditionally Measured Despite the digital transition of media, traditional TV measurement in the U.S. has not progressed to keep pace. Ironically, the TV ratings system doesn’t report the key metric of audience to the commercials. Program ratings don’t tell you how people watch commercials. Kantar Media’s state-of-the-art audience data, however, provides second-by-second return path data (RPD), which is digital TV usage derived from set top boxes. These second-by-second tuning levels enable us to passively collect and measure audiences to all available channels and programs, as well as commercials so we know when and where audiences stay with or leave the ad. More specifically, tuneaway provides a measure of lost audiences by analyzing the tuning present at the start of a commercial and calculates the proportion tuning away from that commercial. Despite digital video recorder (DVR) penetration over 40%, the majority of TV tuning is still live with an average of 3% commercial tuneaway. However, this ranges and we have seen campaigns where audience tuneaway can exceed 20%. For time-shifted content, commercial tuneaway can be much higher, sometimes exceeding 30%. As a practical example of this impact, sponsors of the Super Bowl would lose approximately $80,000 of their investment dollars if a 30-second ad experiences a 3% audience tuneaway. Therefore, understanding this behavior is critical to measuring the real value of the advertising investment. Our two companies, Kantar Media and Millward Brown, realized that we could further improve our clients’ advertising return on investment by helping them minimize audience tuneaway. By aligning Millward Brown’s robust database of Link™ copy testing and Kantar Media’s DIRECTView actual audience behavior, we can now isolate the various factors which drive tuneaway from ads. Millward Brown’s Link™ identifies the potential effectiveness of an ad and is validated to sales. The Link™ database contains thousands of ads across a range of categories and brands. From a Kantar Media perspective, tuning behavior measures the “environment” of how an ad is received via DIRECTView. This is a managed RPD panel of over 100,000 digital households. To prove our concept would work in the real world, we allied with the Advertising Research Foundation (ARF) to define a study where we focused on a given month of Kantar Media’s second-by-second TV tuning for 184 ads that had been pre-tested with Millward Brown’s Link™ dataset across a range of categories. Our goal was to address two questions: • What creative metrics from a pre-test can predict audience tuneaway? • How media placement and measurable influences can impact the results? Aligning the results from these databases enables us to provide guidance on how to optimize both the creative and media placement to minimize commercial tuneaway. Understanding The Creative Understanding which creative elements relate to tuneaway before a commercial runs will provide an early warning signal to help advertisers minimize potential audience loss and provide insight that is actionable before the commercial campaign begins. It is important to note that tuneaway provides an understanding of ad avoidance, but does not indicate whether an ad will necessarily be successful. Millward Brown’s research on what constitutes strong creative illustrates the importance of engaging viewers in a branded fashion (branded engagement) so an ad gets noticed and recalled in association with the brand. If an ad engages viewers, the advertiser has a greater opportunity to create associations about the brand that could generate a response (persuasion). Combined, these two measures help us understand the creative potential of a commercial in market. From our analysis, we know that some ads are more likely to engage with consumers in a negative way and be fast forwarded or “tuned away” from, and these contain certain creative characteristics. These creative aspects can be grouped together into three clear dimensions. The element that is most important in terms of tuneaway from a creative standpoint is personal relevance - if consumers have no interest in the category or brand, they are more likely to tune away. Secondly, viewers need to have a negative emotional reaction to a commercial in order to actively change the channel and tune away. They find the commercial “unpleasant”, dislike it, or feel inadequate or annoyed when watching it. The key finding being, consumers have to engage with the commercial in the first place, in order to take action against it. Finally, if the message contained in the ad lacks relevance or credibility for consumers then they are also more likely to tune away. These findings corroborate with what we know about how brains process information1. The brain prioritizes information of relevance to current or future goals and emotion is a big cue to the brain of something that is relevant and important. Therefore, an advertising idea has to resonate with consumers and tap into issues of importance to them. The challenge is to present the brand in a way that is relevant to the consumer’s current mindset or broader values and goals to help minimize potential tuneaway. 1Cognitive Neuroscience, Marketing and Research: Separating Fact from Fiction, Graham Page and Jane Raymond, ESOMAR Congress 2006 For time-shifted content, commercial turnaway can be much higher. Therefore, understanding this behavior is critical to measuring the real value of the advertising investment Turn On, Tune In, Watch Out
  • 80.
    Understanding Media Placement Buthow important is the media in terms of the whether viewers watch or “tune into” watching the commercial? As we have learned, it is critical. The effectiveness of an ad being ‘tuned into’ depends largely on where and how that commercial is received, or its media “environment”. Media placement can be measured on a range of factors, or media influences, relating to the buying strategy employed. For the purpose of our study, we used our second by second audience data to identify the most important reasons why people tune away from commercials. These include: program, network/channel, daypart, commercial length, the pod within the program, position in pod and product category. We were then able to see some very interesting trends. For example, ads which are shown first in a commercial pod (the grouping of commercials in a program) tend to have higher levels of tuneaway. The specific program also affects the ad’s performance as does the specific product category being advertised. For example, categories such as movies/entertainment, experience lower levels whereas automotive experiences higher levels of channel switching. This is logical, as the vast majority of Americans will not buy a car in the next year, so that brand may not be as relevant at the time of viewing. We have used these data to develop a new performance metric – the Audience Tuneaway Index (ATI). All of the media influences listed above impact on the performance of campaigns, and so by using broad commercial benchmarks we can control for each influence and calculate how campaigns would perform in a typical TV environment. The Real Value – Combining Creative and Media Placement Measurement The real power lies in combining media and creative aspects to understand how they interact. We built a structural equation model across the combined datasets to isolate the effects of creative and media placement on audience behavior tuneaway. While we know creative plays a critical role, the model illustrated an amazing observation- media plays an even stronger role, accounting for 75% of tuneaway. From a creative standpoint viewers generally have to really dislike an ad or have it not be relevant to actively change the channel. From a media standpoint, there are multiple factors which will impact even the most powerful creative. Many consumers will intuitively change the channel as soon as the commercial break starts, and certain programming is better at retaining audiences. For example news or sports, may impact the way in which the commercials within it are consumed, compared to a genre such as drama which usually requires continuous engagement to follow a storyline through a commercial pod. However, the creative remains critical. Audience tuneaway does not inform us if the commercial was remembered in conjunction with the brand, or whether it drove sales. Audience tuneaway analyses, complemented with other commercial performance measures provide an additional diagnostic to understand the ad’s potential to retain or lose viewers. Activating the Model to Help Advertisers While our study enabled us to understand the overall trends and causes of audience tuneaway, we are also able to analyze the performance of individual campaigns and pinpoint areas of strength and weakness. We found examples of campaigns which scored well creatively but performed poorly in terms of their tuneaway, and others which were weaker creatively but managed to minimize ad avoidance. Examples such as these enable us to understand the relationship between creative and media and to identify specific elements that contributed to this performance and areas for improvement. In one specific case, we found the advertiser had an opportunity to improve both the creative and media strategies to reduce ad avoidance. From a creative standpoint, they needed to convey a more credible message and make changes to reduce the negative emotional reaction. Their media strategy could be enhanced by better rotating spots in different pod positions as well as modifying their channel and pod composition. Overall Conclusions Consumers will continue to evolve with digital media, actively selecting relevant video content and consuming it on their own terms. To understand audiences in this digital evolution, programmers and advertisers need additional measurement practices to provide enhanced accountability and insight. Commercial tuneaway does represent a significant loss in both audience and media investment, but there are metrics available that can help analyze campaigns from both a creative and a media placement standpoint, to manage and reduce ad avoidance. Can’t you just see Mr. Wanamaker smiling? First published in the July 2011 edition of AdMap. Reproduced from AdMap with permission. © CopyrightWarc. www.war.com/admap Turn On, Tune In, Watch Out Many consumers will intuitively change the channel as soon as the commercial break starts, and certain programming is better at retaining audiences
  • 81.
    SocialMediaBestPractices By Chris Maier,Director of Digital and Media Solutions for Greater China, Millward Brown & Nicki Cunliffe, Associate Director, Millward Brown Optimor The study of China’s Top Social Media Brands reveals several best practices that can inform the marketing of brands determined to make an impact in China. These best practices include: 1. Branding and Messaging Make social media messaging consistent with the brand’s ideal An effectively planned and executed social media strategy can have tremendous impact on raising awareness and conveying a message, when it is in line with the brand’s core idea and values. In 2010, Haier aligned with the World Wildlife Fund’s Earth Hour initiative and urged employees and customers to participate. Haier launched a promotional website where visitors learned about the importance of power conservation. Haier spread awareness through integrated sharing links to social media websites, calling for the involvement of consumers around the world to care for the earth. The company also engaged consumers with activities on popular online forums and blogging platforms. Haier’s Earth Hour website received over 1.5 million visitors after only 10 days online, indicating the success of social media as a platform for Haier to spread its message of promoting a smarter life for a better planet. Importantly, the Earth Hour initiative is very much in line with Haier’s renewed brand positioning as a developer of sustainable white goods solutions and producer of environmentally responsible and energy efficient appliances. 2. Customer Service Leverage the microblog platform to engage with consumers in real time The increase in popularity of the microblog has spurred most brands to launch an official microblog page. Brands most sophisticated in social media use these platforms to allow customers to voice their problems as soon as they arise. Then the brand responds with equal speed. In January 2010, around 600 cabin crew associates from China Eastern Airlines ‘Lingyan’ group joined the microblog Sina Weibo. They wanted to better communicate with their customers, build customer loyalty and deal with any potential issues or crises that might arise. Just a month later, in February 2010, the famous Chinese actor Xu Zhen tweeted to his Sina Weibo that he misplaced his iPad on a flight and mobilized his followers to help him find it. In just over an hour, a cabin crew member from Xu’s flight identified herself and informed him that she had picked up his iPad and arranged for it to be returned to him. China Eastern Airlines’ participation in social media has enabled the company to engage with customers on a personal level and provide responsive service. 3. Consumer Insight Listen to consumers and co-create desired experiences Social media provides an ideal opportunity for brands to listen more and develop a better understanding of what consumers want. In June 2010, Air China launched a social media campaign. “My flight, I decide” via Sina Weibo, and recruited netizens to create their ideal flight, offering complete customization of route, in-flight service and food and beverage. Air China used web portals and microblogs to spread the word, attracting over 5,000 netizens to participate and adding the term “weihang ban” (custom-flight) to the Chinese online lexicon. Most importantly, Air China was able to gather important intelligence to enable the company to design the ideal flying experience from a customer perspective. 4. Social, Local and Mobile (SOLOMO) Integrate social media with mobile marketing and location-based services With the ever-increasing number of smart phone users getting hooked on social mobile apps like location based services (LBS), microblogs, social network sites and video sharing sites, mobile has become an increasingly important social media marketing platform. China Mobile partnered with Tudou, one of China’s leading video sharing websites specifically associated with netizen generated content, to create a campaign called “CMCC WIFI Hotspot Check- in.”The campaign encouraged China Mobile users to discover and turn on WIFI hotspots via LBS check-in. The checkin activity automatically synced to a campaign site Tudou set up with a map of Shanghai detailing every time a netizen activated a WIFI hotspot. To encourage the on-going upload of user generated content, netizens were also able to upload photos to the campaign site using location based SNS, Bedo. The campaign attracted more than 90,000 check-ins from mobile netizens. The success of China Mobile and Tudou’s joint mobile marketing initiative demonstrates the innovative integration of social, local, and mobile (SOLOMO), which has proven to be very well received by young netizens in big cities. 5. Viral Video Produce online video to give people something to talk about By the middle of 2011, the number of online video users reached 301 million in China, according to a July 2011 survey by the China Internet Network Information Center (CNNIC). Staterun websites, like CNTV, and private video sites, like Youku, Ku6 and Tudou, have become a big part of netizens’ lives. As a result, many brands are using viral videos to create buzz and promote sales. In 2011, Lenovo launched its “Boot or Bust” viral video, a product demo of the new Lenovo ThinkPad laptop equipped with a feature called RapidBoot. The demonstration was designed to dramatize how RapidBoot gives Lenovo computers the ability to boot up in just 10 seconds. In the video, a ThinkPad is tossed from a plane at 12,500 feet and powered on in midair by a skydiver. The falling computer then boots up quickly enough to trigger a parachute and sail to a safe landing. The video created a lot of buzz, and the integration with social websites made the viral spread of the video content faster and wide reaching. There has been a lot of discussion about what makes something go “viral.” Millward Brown and CIC findings indicate that creative, humorous, touching and exaggerated subjects are more likely to be shared. 6. Hot Buzz Know and participate in hot topics to drive engagement Brands should stay abreast of hot topics because the most popular stories and breaking news generate the most online buzz. The appearance of Chinese dairy company Yili in the Transformers 3 movie took many people by surprise, with a character in the movie asking, “May I finish my Shuhua milk?”Yili capitalized on the fact that Transformers 3 was the most buzzed about hot topic online and supplemented the product placement with an extensive social media campaign. The official microblog fan page was launched before the movie opened, and a series of marketing activities were executed. These activities included encouraging netizens to enter competitions to win tickets to the premiere and Yili branded movie souvenirs. They also involved completing personal movie reviews after the movie was released. The discussion about Yili Shuhua milk associated with Transformers 3 created a lot of buzz online, generating over 170,000 tweets during July 2011, on Sina Weibo alone. Leveraging the enthusiasm of consumers,Yili enhanced the effect of the product placement and attracted abundant re-tweets by bonding the brand with very relevant and topical discussion content. First published in the 2012 edition ofWPP’s BrandZTop 50 report
  • 82.
    recent report concludedthat there is a very strong link between creativity and effectiveness: ‘The Link Between Creativity and Effectiveness’ (IPA, 2011, Peter Field). Field’s analysis sheds an interesting light on an old debate about creativity and sales effectiveness. We’ve long felt there was a connection: when we look at the best ads we have ever tested, it is clear they all have the power to involve and be enjoyed, and it is clear even subjectively that they all harness creativity, albeit in different ways, to great effect. To explore this issue further, we’ve recently conducted our own analysis. We undertook a painstaking trawl through the winners of IPA Effectiveness Awards from 1996 to 2010, Effies from 2007 to 2010, and Cannes Lions from 2002 to 2011 to identify campaigns for which we had conducted Link, our global pretest. The IPA and Effie awards are given for effectiveness, while Cannes Lions are given for creativity. In total, we identified 251 ads covering 92 brands. For brands for which we had researched more than one ad, we used the average scores across all the ads. We indexed the Link results to enable legitimate comparisons of ads from different countries (because the Cannes Lions cover ads from around the world, and average scores vary across countries). An index of 105 or more puts the ads into the top third tested; an index of 114 or more puts the ads into the top 10%. Figure 1 shows the results on a selection of key Link measures for IPA Effectiveness winners. Overall, these results include 153 ads for 46 brands; the “base” column shows the number of brands represented. (Because Link has evolved over the years, we don’t have all the measures for all the ads.) Compared to our overall average, the television commercials for the winning brands tend to be more involving and enjoyable (an index of 105 puts the ads into the top third we’ve tested on these measures), and different to other advertising. They also have slightly better branding. They are less likely to be seen as conveying new, relevant, or unique information designed to make people feel differently about the brand. The persuasion scores of these award-winning campaigns are on a par with norm. Some may be surprised that advertising can work without persuading people. We’ll explore this further later in the paper. By Dominic Twose, Global Head of Knowledge Management at Millward Brown and Polly Wyn Jones, Senior Database Analysis Executive, Millward Brown A Figure 1: IPA Effectiveness Winners INDICES MEDIAN NUMBER OF BRANDS Different to other ads 106 10 Enjoyment 105 46 Involvement 105 36 Believable 102 19 Branding 102 43 Appealing 99 36 CPG Persuasion Mean Score Index 99 25 Understanding 98 46 New Information 97 35 Relevance 95 36 Think Differently 95 15 Uniqueness 95 24 Brand Different 93 19 CreativeEffectiveness A study of IPA Effectiveness, Effie and Cannes Lions Awards winners reveals that ads don’t need to persuade to be effective but they do usually engage emotionally.
  • 83.
    Cannes LionS Turning tothe Cannes Lions (covering 43 ads for 30 brands; some ads were tested in multiple countries), they too perform well above average on enjoyment and involvement (Figure 3), but they are also far more likely to be different to other ads (an index of 115 puts them in the top 10% of ads we test on this measure). On the other hand, branding scores are on a par with the norm while the persuasion scores are below the norm. So it seems that both creative and effective ads benefit from enjoyment and involvement. The finding that shows that persuasion is not necessary for effective advertising may seem surprising; both Millward Brown and some of our competitors have published evidence that such advertising can produce sales effects (‘An Analysis of How Effectively Advertising research Can Predict sales’, Twose and Smith, 2007). However, this is understandable in light of the evidence that a persuasive ad tends to affect sales in the short term, while effectiveness awards tend to be given for long-term brand-building campaigns. The Millward Brown measure of persuasion, which asks respondents whether the ad makes them more likely to buy the brand, tends to closely replicate the results of pre-post persuasion shift approaches (‘Persuasion shift Testing: Putting the genie Back in the Bottle’ Farr, 1993). We have also observed that ads which performed well on persuasion also tended to convey relevant, credible, differentiating news (‘What Makes an Ad Persuasive?’). A new, relevant, and credible claim will always have a dramatic sales effect. But such advertising will wear out quickly: persuasion is a “one-off” event. We either get the consumer to make a mental note to try the brand again, or we do not. An ad that did not get this response at the first three showings is unlikely to at the fourth. So, while persuasion is one route to produce a substantial sales effect in the short term, this effect is unlikely to register strongly in the long term. In fairness, we should also acknowledge the possibility that advertising agencies are more likely to submit highly creative campaigns to the IPA Effectiveness Awards, and less likely to submit campaigns based on establishing a new, relevant factual claim. It does seem that persuasion is not necessary for long-term brand building. This highlights the need to be clear in setting advertising objectives either in terms of short-term sales effects or longer-term brand building. In 2005, after an extensive review of the literature, we compiled a list of 16 emotions to represent the range of emotions advertising could generate. (The Emotional Drivers of Advertising success: Page, 2005). We’ve now had considerable experience of these measures, and we have found them extremely helpful in understanding ad performance. While the base of brands covered is admittedly low, the average responses for the IPA Effectiveness Awards winners seem to mirror the UK norms (Figure 4). A new, relevant and credible claim will always have a dramatic sales effect Figure 2: Effie Winners Figure 3: Cannes Lions Winners INDICES MEDIAN NUMBER OF BRANDS Branding 106 16 Uniqueness 105 15 Involvement 104 15 Brand Different 102 15 Different to Other Ads 102 13 Enjoyment 102 16 Persuasion 101 12 Believeable 100 14 New Information 100 15 Relevance 99 15 Appealing 98 16 Understanding 97 16 INDICES MEDIAN NUMBER OF BRANDS Different To Other Ads 115 17 Involvement 113 22 Enjoyment 106 36 Appealing 101 33 Brand Different 102 26 Branding 99 36 Believable 94 26 Persuasion 97 27 Think Differently 97 15 Relevance 95 25 Uniqueness 96 26 Understanding 92 34 New Information 91 25 Figure 4: IPA Effectiveness Winners Base: 13 Brands, 2086 Ads INDICES IPA UK AVG Affectionate 20 22 Annoyed 12 13 Attracted 32 36 Confident 27 32 Contented 41 40 Dissapointment 12 13 Excited 20 20 Guilty 2 2 Hatred 3 3 Inadequate 6 6 Inspired 33 32 Proud 15 15 Repelled 7 7 Sad 5 4 Surprised 33 28 Unimpressed 29 29 Creative Effectiveness Effies Figure 2 shows the results for the Effies. These figures must be viewed with caution because of the lower base sizes – (55 ads, 16 brands) – but they suggest that, like the IPA winners, the Effie winners are involving, enjoyable and well branded. However, the Effie winners differ in that these ads were considered to deliver unique impressions that could only be for the advertised brand, and both the brands and ads were seen as different from others. They perform on a par with the norms on relevance, news and credibility. Again, persuasion is on a par with norms.
  • 84.
    However, many individualads did achieve high scores on specific emotions; these results are masked in the aggregate data. One FMCG brand, with an advertisement featuring mums’ relationships with their children, scored 60 on “affectionate” versus an average of 26; one personal care brand, with ads focusing on sexual appeal, scored 76 on “attracted” versus an average of 45; one beer brand, with an ad showing what excited different groups of people, scored 55 on “excited” versus an average of 36; and a beer brand featuring a charismatic, aspirational character, scored 41 on “proud” versus an average of 24. Our database shows that, among other things, emotionally powerful ads are more memorable (“Should my advertising stimulate an emotional response?”, Millward Brown). The variety of different emotional responses obtained by award- winning advertising highlights that there is no one emotion to trigger for successful advertising. Rather, the successful ad triggers the emotion that is relevant for that brand and positioning. Looking at the Effie winners shows the same pattern (Figure 5); the story lies with the individual brands. One cereal brand scored 60 on “affectionate” versus an average of 25. A food brand scored 73 on “contented” versus an average of 48, and a beverage brand scored 52 versus an average of 35 on “excited”. The Cannes versus global data is problematic, because we are adding together results across countries, and again the base sizes are low. However, overall, the Cannes winners have broadly similar emotions to our global norms. But again the key to understanding emotional response lies in the individual brand stories. One FMCG brand, with an advertisement featuring mums’ relationships with their children, scored 60 on ‘affectionate’ versus an average of 26, one personal care brand, with ads focusing on sexual appeal, scored 76 on ‘attracted’ versus an average of 45, one beer brand, with an ad showing what excited different groups of people, scored 55 on ‘excited’ versus an average of 36, and a beer brand featuring a charismatic, aspirational character, scored 41 on ‘proud’ versus an average of 24. What This Means For Advertisers This analysis serves as a celebration of creativity. Advertising which is enjoyed, found involving, and stimulates the emotions in a way that other advertising doesn’t, should be encouraged and rewarded. But that doesn’t mean advertisers should pursue creativity at the expense of all else. It has long been known that advertising needs to be underpinned by an appropriate strategy. This analysis adds another factor: branding. It is all very well for an ad to leave vibrant memories, but do these memories link to your brand uniquely? Branding has nothing to do with repeating the brand name and showing packs; it has everything to do with making the brand the centre of, and the reason for, the creative idea. The Marlboro Cowboy, the Hovis delivery boy freewheeling down a hill to the strains of Dvorak’s New World Symphony, the Andrex Puppy and the Clio-driving Nicole and Papa, are all excellent examples of well-branded advertising. There are many ways to brand an ad but, ultimately, it relies on creativity to integrate the brand, or an established branding cue, into the ad in an engaging way. This analysis suggests that advertising should also stimulate emotions; but there is no single emotion which works better than others. Summary The analysis presented here helps to explain the overlap we observe between creative advertising and effective advertising. While creativity cannot be defined or prescribed, its effects can be measured, and creative ads tend to be enjoyable and involving, and different to other advertising. They tend to stimulate an emotional response. Effective ads also tend to generate these responses – and they are also likely to be well branded. The analysis also highlights that one differentiator between creative ads and effective ads is that effective ads are more likely to have the brand as an integral part of the advertising. There is no single route to effective advertising, and this is particularly in evidence in looking at emotional response, where no one emotional response seems to be related to effective advertising. Despite having the biggest pretesting database in the world, Millward Brown acknowledges that the base sizes for this analysis are not as robust as we would wish. Still, we do believe that the analysis adds a useful contribution to the debate. The Cannes Lions have a new Creative Effectiveness category to highlight those campaigns that have had measurable business effects over time, and Walker’s Crisps, PepsiCo’s snack brand, won the Grand Prix at the inaugural Creative Effectiveness Lions. This was an ad we researched and, while we cannot discuss the research findings in detail, we can say that it scored above average on “enjoyment”, “involvement” and “branding”. Over the next few years, as the Creative Effectiveness Lions case studies continue to build, learning about the relationship between creativity and effectiveness will only continue to grow. Figure 5: Effie Winners Base: 16 Brands, 7900 Ads INDICES Effie US AVG Affectionate 24 25 Annoyed 13 12 Attracted 40 43 Confident 45 43 Contented 46 48 Disappointed 8 8 Excited 37 35 Guilty 1 2 Hatred 2 3 Inadequate 4 5 Inspired 41 41 Proud 31 27 Repelled 7 6 Sad 3 3 Surprised 39 35 Unimpressed 18 20 Creative Effectiveness First published in the November 2011 edition of AdMap www.warc.com/admap Many individual ads did achieve high scores on specific emotions Branding has nothing to do with repeating the brand name and showing packs
  • 85.
    t’s official. TheUS is barreling toward one of the most significant demographic shifts in the country’s history. According to Census projections, by 2042 America will be a “majority-minority” nation, where so-called ethnic minority populations will collectively outnumber the White majority. While this may seem a far-off reality, in some respects the future is now: Minorities already outnumber Whites in some of the largest and most influential markets in the country. And nationwide, the youth consumer population reflects this reversal. So, what does this mean for marketers? While the implications are numerous, one thing is for sure – the traditional multicultural marketing paradigm, originally established within a very different socio-historic context, is losing relevance in the race for share of hearts and wallets of this stereotype-defying, new mainstream. I By Ola Mobolade Managing Director, Firefly Millward Brown & Author, Marketing to the New Majority @ola_FFMB IsYourBrand’s MarketingStrategy 2042-Compliant? Blue-chip mega-brands like McDonald’s and Coca-Cola have made quite public declarations of fundamental shifts in their approaches to reaching the new consumer landscape. And with the recent string of multicultural marketing missteps experienced by brands like Summer’s Eve and Nivea, it’s also clear that the path to cultural competency is not necessarily an easy one. Unfortunately, the solution isn’t as simple as pumping up multicultural marketing budgets (though arguably it may be a start). Brand marketers must revamp their strategic toolkits as it relates to how they define their mainstream audience and the role of ethnic consumers within it. In our newly released book, “Marketing to the New Majority: Strategies For a Diverse World,” my co-author, David Burgos, and I lay out an extensive blueprint for brands seeking to gracefully navigate this new terrain. First published in the October 10, 2011 edition of Forbes, www.forbes.com Herearesiximportantguidelinesfor makingsureyourbrandis2042-compliant Culturally progressive brands go beyond paying lip service when it comes to improving the brand’s engagement with the diverse New Majority. They go the step further to tie it to performance reviews and bonuses. Quantifiable performance indicators for ethnic market growth are established in advance, and favorable reviews and bonuses are awarded when these goals are met. Don’t call on Jose, Keisha or Jin for an ethnic-marketing role simply because they are Hispanic, Black or Asian. If they are given this responsibility, it should be because of their track record of expertise in marketing to these segments. Assuming that non-White employees are interested in working on ethnic projects may make some question whether their broader talents are truly valued. In addition, firsthand experience living as a minority is only part of the ethnic expertise equation, and only assures they can bring their own personal perspectives to the table. Each ethnic consumer audience is diverse, and the best ethnic marketers are well versed in the nuances of each segment. Establishing a multicultural marketing department can be an important step in the transition toward fully integrating ethnic competency throughout the organization, but it isn’t the finish line. One of your interim goals should be to create and leverage an internal team of ethnic experts that can be an educational resource to sales and marketing. But, it should be viewed as a means of achieving a greater end goal. There should also be a plan for taking off the training wheels, so that sales and marketing are eventually empowered to deliver culturally relevant strategies independent of the multicultural marketing group. To be optimally effective, your company’s vision for reaching the New Majority must come from the top. If there isn’t a C-level executive evangelizing the crucial importance of ethnic consumers to business growth, it will be much more difficult to implement real organizational change. A culturally diverse workforce is essential for companies that want to relate and empathizewiththeirmulticulturalcustomerbaseinaneffectiveway. Ifacompany’s employee base is far less diverse than the audience it serves, it is operating at a significant handicap. While expertise in the ethnic marketplace can come from anyone, regardless of race, there is a certain degree of intuitive empathy and life experience that ethnic employees can bring to the table. Also, close working relationships among coworkers of various ethnic backgrounds help the entire team internalize ethnic insights. A chief diversity officer can be instrumental in realizing this vision. For businesses that engage both generalist and ethnic agencies, the person managing the agency relationships must set the tone for true collaboration and an open flow of ideas.There is an atmosphere of insecurity and tension in today’s agencies about which types are best suited to lead marketing efforts for the New Majority. The Client contact should make it clear that they value the unique strengths that each agency brings to the table, and be open to the best ideas regardless of which agency they come from. A fair and relatively transparent compensation model for the various agencies will reinforce this. Healthy competition can yield stellar work, but if ethnic agencies feel undermined, they may unintentionally assert their role by creating work that overemphasizes ethnic distinctions. Invite all your agencies to strategic and creative briefings, rather than meeting separately or leaving it to the general-market agency to relay your direction to the ethnic agency. In these all-agency meetings, state your preferred style of collaboration up front—or, in the case of general market agencies that already have established partnerships with ethnic agencies, ask them to present their process for collaboration before you begin.
  • 86.
    The first stageof the ValueDrivers model focuses on the definition of a brand’s meaningfully different experience. The second stage focuses on how a brand experience that is meaningfully different can best be amplified—that is, brought to life and made more compelling to a wider audience. The work that goes into these two stages leads, in a number of different ways, to the generation of value described by the third stage of the model. Themodelhelpsusaddresstwokey issuesfacingbrandmarketingtoday: FIGURE 1: Drivers of Value Growth HowBrandsDrive ValueGrowth ValueDriversModel: By Nigel Hollis, Chief Global Analyst and Gordon Pincott, Chairman, Global Solutions Introduction We have developed a framework to help businesses understand how to grow the value of their brands which we have called ValueDrivers. The result of extensive analysis of our brand equity database and re-evaluation of our own and other models, ValueDrivers has now been reviewed and used by many businesses around the world. It has formed the basis for workshops to help individual brands realize their potential and has provided the springboard to a new brand equity measurement system. It has been applied to real-life marketing problems helping businesses to maximise the financial value of their brands. The ValueDrivers model proposes that brands maximize their potential for growth by delivering a brand experience that is meaningfully different from others, and then using all available mechanisms to amplify that. DEFINE Defining A Meaningfully Different Experience People choose brands that they believe are meaningfully different from others, provided that the difference is meaningful to them. Offering a brand experience that is meaningfully different can help a brand build value, either by enabling it to command a price premium, or to capture a higher proportion of sales. Whether a brand is perceived in this way will depend upon the interaction of the four factors shown in the model. For a brand to be perceived as meaningfully different, it must offer something its competitors do not, and that offer must resonate with customers. This is most likely to happen when a business is clear about the purpose of the brand, and the brand delivers the differentiated experience it promised. Today’s markets are complex. Categories are crowded. New categories are being created to meet the changing needs of consumers, and the retail environment is changing as well. One consequence of this increase in complexity is that businesses sometimes focus so intensely on communication, distribution, and pricing that they neglect to ensure that their brand is clearly defined and differentiated. Go-to-market options have exploded in recent years. Marketers can communicate with consumers in virtually any place at any time, through means that didn’t exist—and in some cases were not even imaginable—until recent years. There are more ways than ever to make brands available to people. With so many possibilities, marketers sometimes have difficulty thinking through all of their options for reaching customers. At one extreme, this can lead them to simply repeat the choices they made in previous years, while at the other, it may cause them to put undue emphasis on the latest new marketing techniques.
  • 87.
    purpose A brand musthave a purpose. It must be intended to make some difference in people’s lives. And to justify existing in today’s complex and crowded categories, a brand needs a purpose that sets it apart from others. What does this brand offer that others do not? At minimum, a brand must have some basic functional purpose; it must provide something consumers want or need. A brand can satisfy emotional needs along with practical ones when it triggers associations related to things like love, caring, or security. A brand’s purpose can also be informed by the brand’s story or heritage. Some brands are able to elevate their purpose to the level of an ideal that goes far beyond the functional delivery of the product to address higher-order needs such as fulfilment, identity, affiliation, and societal or environmental good. For example, Jack Daniels helps to affirm its drinker’s individuality. Pampers is devoted to helping ensure babies are happy and healthy. Method, the U.S. household cleaning products company, is dedicated to inspiring a healthy revolution in home cleaning. A brand’s purpose should be clear to everyone in the company. When an understanding of a brand’s purpose permeates an organization, it will be much more likely to be single minded in its focus and to speak with one voice. A leader who is passionately concerned about the brand can elevate its purpose, inspiring as well as commanding others to follow. Delivery Differentiation is most potent when it is intrinsic, that is based on relevant and tangible advantages and when it is powered by the declared purpose of the brand. Intrinsic differentiation can come through the look, feel, sound, smell, or taste of a product. The delivery of an outstanding brand experience depends on attention to all of the details: the consistency of the product, the functionality of the brand’s website, the clarity of its usage instructions. For service businesses, the human delivery is at the heart of the brand experience. A company culture built around the brand’s purpose or ideal will help to ensure consistent service delivery. However, human factors contribute to the experience of other types of brands as well—for example, the brand representatives encountered at retail outlets, car dealerships, and through call-centers. Differentiation can also be extrinsic, not based on what the product is or does but upon how it feels. Brands have personalities created by their product experience but conveyed through what they do and say. Brands often have associated rituals and all have iconography that makes the brand identifiable and conveys its character. Brands can exploit the senses beyond those that are engaged directly by the product. Increasingly, social and environmental responsibility can all form the basis of extrinsic differentiation. Outstanding design can add aesthetic power to the intrinsic functionality. Resonance A clearly defined purpose and a company organized to deliver around that purpose will do little to build brand value if the brand’s offer is not meaningful and relevant to consumers. The brand must address a real need. It must offer something that consumers need or want at a price they are willing to pay. However, the most powerful type of resonance occurs when strong emotional bonds connect consumers with brands. These emotional connections are formed when people feel that a company genuinely relates to them and offers them brands that are not just useful but also emotionally rewarding. This is where the intrinsic and extrinsic elements of the delivery combine to make the brand powerfully relevant to people. Consumer resonance becomes more difficult to achieve as the definition of the target audience broadens. The art of marketing is to make the brand as relevant as possible to as many people as possible without losing clarity about what the brand stands for. DIFFERENCE The degree of differentiation required for a brand to grow and prosper will depend on the nature of the brand and category. The key question to ask is whether your brand is different enough given its competitive context. While a brand can’t control its competitive context, it must continually be responsive to it. Successful brands that want to continue to grow need to respond effectively to new competitive offers. When brands stagnate or decline, it is rarely because of something they are doing. Rather, it is something they fail to do: They fail to respond to a changing landscape and so lose their original meaningful differentiation. Some brands are able to elevate their purpose to the level of an ideal that goes far beyond the functional delivery of the product How Brands Drive Value Growth
  • 88.
    How Brands DriveValue Growth AMPLIFY Amplifying a Meaningfully Different Experience The more powerful the experience, the more effective all the means of amplification will be. A brand’s meaningful difference is amplified through the following five characteristics: Findability, Credibility Vitality, Affordability and Extendibility Findability Physical availability is an obvious prerequisite for brand success. Without adequate distribution, a new brand introduction will fail, and an established brand will fail to maximize its potential. Where it is available a brand needs to be visible and easily identifiable. Where online is part of the path to purchase the brand must also be searchable. Marketers should look for opportunities beyond traditional distribution channels to open up new sales potential for their brands. They need to think about all the times and places where people might have a need for their product, and make sure the brand is found there. CREDIBILITY Ideally, for maximum credibility, all of a brand’s actions need to be aligned with the differentiated experience it offers consumers. The brand should be refreshed and enhanced by innovation that is based on that core difference. The launch of new product lines should benefit from, and feed back into, the meaningful difference. Increased credibility can also be built through association with other organizations, brands or people who share an allied sense of purpose. VITALITY A successful brand must have vitality—it must seem active and alive. A brand’s communication must keep the brand salient and current if the brand is to remain top-of-mind for consumers. Use of social media can help a brand seem contemporary and encourage people to talk about it, as long as the brand creates experiences with inherent talkability. Communities, offline as well as online, are powerful sources of human connection. The choice of communication channels and the creative content should be based on and driven by the brand’s meaningful difference. Vitality is also served by maintaining a fresh look and feel to packaging, logo, and communication, though innovation in these areas needs to be balanced by the need to maintain clarity and identity. AFFORDABILITY The interaction of price and meaningful difference is a major consideration in growing value. One of the most important roles marketing can play is to frame price perceptions to best advantage. A brand needs to be priced appropriately for its target audience. When the price is a barrier for some people, a brand might be made more affordable through different pack sizes or creative financing options (e.g., purchasing over time). In some cases, it may be possible to offer different versions of the brand, still based on the meaningful difference, but at different price points. People will happily pay a premium for a brand if they believe it’s worth it. Before assuming that a brand’s price needs to come down, marketers should think about ways to frame people’s perceptions of their brand’s value. Does it last longer? Is it more durable? If a brand experience is powerful enough, it might be possible to increase the value of the brand by raising its price. EXTENDABILITY A major way of growing brand value is by extending a brand that has been successful in one country into other countries. It may also be possible to extend a brand into new categories, using the power of the brand name to open up new market opportunities. This can be done by the brand owner themselves or by licensing the brand to third parties. Brandscreatevalueoutofameaningfully differentexperienceinfourways: GROW Value Growth based on a Meaningfully Different Experience Deep understanding of all these interwoven drivers will allow brands to build lasting value for consumers and for shareholders. This article is based on research conducted using Millward Brown’s database and Brand Equity model, October 2011 By extending the brand’s penetration to new customers in the same product category The most common way to grow the value of a brand is to extend its reach to new customers within the same product category. Credibility, affordability and findability are the most important means by which brands can increase their penetration. But it is important to recognize that this strategy carries risks as well as rewards. One of the most valuable roles of marketing is sustaining the existing brand franchise and pricing. Without continued affirmation of what the brand stands for, existing users may become disenchanted or lured away by other more salient and vital brands. If, in seeking to attract new users, a brand needs to amend its existing positioning then it risks losing the very people who currently sustain it. Many strong brands have ultimately suffered by seeking to be all things to all people; in doing so they lose clarity and become commoditized. Rather than undermining an existing successful positioning, brands should instead seek to create additional value for existing users or extend the brand to new categories and countries. By allowing the brand to capture a majority of sales at a more modest price point In the absence of any other perceived differentiation, a lower-priced brand is likely to win out over a more expensive one. Sustaining a price advantage over the competition has proved to be a winning strategy for many brands. Lower pricing will result in lower margins and therefore create a need to generate high volume; Wal-Mart makes high levels of absolute profit by balancing lower margin with enormous scale. However, the commitment to sustaining low prices over the long term has consequences for every aspect of the way a company works, and some potential customers will inevitably be alienated by this approach. For example, in the airline category, some people will not accept the lack of assigned seating as a fair trade-off for a lower fare. And when a low price is a brand’s only differentiating feature that brand will always be vulnerable to competitors willing and able to offer the same product at an even cheaper price. Premium brands can capture more sales by offering more affordable versions. This “brand down” strategy must be carefully managed to ensure that the cheaper offering does not cannibalize the premium one. The challenge is to ensure that customers recognize that they are giving something up when they buy the cheaper variant. By enabling the brand to command a price premium versus the competition If a brand can command a higher price, its value can be increased without large increases in penetration. Raising prices will have a direct effect on the bottom line since no additional production costs are incurred. Enhancing the desirability of a brand offers the best means to improve a brand’s ability to command a price premium. However, the ability to charge a price premium can only be sustained if the brand continues to justify its meaningful differentiation. Failing to justify this leaves the brand vulnerable to competitors charging a lower price - although strong marketing can help a brand maintain the perception of superiority long after other brands have matched it. Credibility and vitality are critical in driving this perception. By extending the brand’s reach to new countries and categories Geographic growth offers one of the most significant means to grow a brand’s value. The challenge is to take what made the brand initially successful and extend it to new countries and customers. Often this requires some adaptation of the product and how the meaningful differentiation is communicated. This is not necessarily an easy task but it is less risky than launching a completely new brand. Similarly, extending the brand into new categories offers the potential to leverage an existing brand franchise. This strategy has the advantage of being able to cross sell to existing buyers of the brand. The most successful brand extensions require a good fit between the brand’s existing meaningful differentiation and the needs of the new category.
  • 89.
    sing social mediaand creating a regularly updated brand fan page is not necessarily right for all brands. Marketers want to understand in advance whether their investments will be justified. This article helps marketers understand whether fan pages are right for their brand and category. Brand fans are important because they are generally the most valuable consumers of any brand. BrandZ™ data based on interviews with more than 100,000 consumers globally in 2010 – in categories from banks and cars to shampoo and coffee – show that bonded consumers are more likely to become fans of the brand in social media: liking it on Facebook or following it on Twitter. What do these figures mean for marketers like you? Do you need to make substantial investments in building social media pages and acquiring as many fans as possible? How likely is it that your brand will be able to build a large social media fan base? This article provides general guidelines on the key factors to take into account when answering these questions. This also means that fans of a brand are more likely to be bonded to it. Because these fans are more attitudinally loyal to brands, they also spend more on them. U IncidenceofFansbylevelsofrelationship oftheBrandZ™brandpyramid % 11 4 1 4 2 BONDING ADVANTAGE PERFORMANCE RELEVANCE PRESENCE Fansandnon-fansshareofwallet(%) FANS NON-FANS SHAREOF WALLET13.4% 2.8% 4 62 67 83 100 19 31 37 50 Factorstoconsiderwheninvestinginsocialmedia On average, fans will spend more than four times as much of their total category budget on their favored brand than non-fans Factor1:Country Factor2:Category Factor3:BrandPerception By Graham Staplehurst, Global BrandZTM Director, Millward Brown Duncan Southgate, Global Brand Director, Digital, Millward Brown and Leonid Dvoretskiy, Senior Account Researcher, Millward Brown Doesyourbrand needsocialmedia andbrandfans? 1
  • 90.
    First of all,the number of fans gained by the average brand in different countries varies significantly. For example, if you are choosing which countries to use a fan page to support your multinational brand, we generally see larger relevant fan bases in Korea, Sweden, USA, and Poland. Currently, in countries like India, Hungary, and Mexico it is comparatively more difficult to acquire a large number of social media fans. Much of the variation we see in the FanZ score correlates with levels of internet access and social media use in each country. Beyond this, social media users are converted into brand fans more easily in some countries than others. Investments in countries where the conversion is easier will be most efficient. Factor1:Country Our unique FanZ score is based on the percentage of relevant category users who are a social media fan or follower of any one brand in that category. Given current levels of social media usage, fandom conversion is particularly high in Korea, Brazil, and China; while acquiring a fan in Hungary seems to be particularly difficult. Does Your Brand Need Social Media and Brand Fans? Averagenumberoffanswithinacategory,rankedbycountry KOREA 16.6 SWEDEN 11.9 usa 11.7 poland 11.5 brazil 10.2 australia 9.7 spain 9.3 china 9.3 uk 8.6 italy 8.6 canada 8.4 germany 7.4 japan 6.9 czechrepublic 5.7 france 5.6 russia 4.8 THailand 4.5 mexico 2.8 hungary 2.0 india 0.5 FanZScore(%) Averagerateofconversionofsocialmediausersintobrandfans FanZScore SocialMediaUsage 25 20 15 10 5 0 0 10 20 30 40 50 60 70 80 CHINA POLAND BRAZIL ITALY KOREA FRANCE HUNGARY
  • 91.
    The category alsomatters. The categories with the highest average levels of fandom globally are IT software, IT hardware, diapers, communication providers, mobile phones and cars. Four out of the top six categories are connected with technology, which is unsurprising since consumers of these categories are likely to use the web more. Brands in technology-related categories have embraced social media to engage with their audience and provide consumers with the latest brand information. It is also unsurprising to see diapers in the top list as this category embraces a very specific type of consumer. Parents are very concerned about their children so look for additional information, connection and reassurance through social media, and are highly willing to discuss brands. The car category has always been one of the most popular subjects for offline discussions in many countries. With the growth of internet usage, we have seen a natural transition of discussions to the online arena (in social media, forums, blogs, etc.), and brands naturally want to leverage their own communications through discussion. In contrast, categories such as motor fuel or detergents are much less popular topics for discussion (whether offline or online). This is clearly a barrier to generating large numbers of fans in these categories. The country and category rankings given previously can be used by your brand as a general guide to evaluate potential audience scale in social media. However, it is important to always keep local market specifics in mind since the categories with the most fans in a specific country might differ significantly from the global picture. For example, the car category in Poland evokes especially high fandom. Nine car brands appear in the top 100 list of Polish sites with the most fans. Brand fandom levels can also vary significantly across countries. For example diapers evoke incredibly high fandom in the US relative to the global norm. This is primarily due to the impact of Pampers and Huggies, which have almost 900,000 fans on Facebook. Factor2:Category Does Your Brand Need Social Media and Brand Fans? FanZ Score 4-5% 6-7% 8-10% 11-13% Hair Care Insurance Grocery Stores Deoderant Mineral Water Oral Care Motor Fuel Detergents Fast Food Body Care Banking/Finance Soft Drinks Coffee Spirits Face Care Credit Card Networks Beers Airlines Apparel (men) E-commerce Apparel (women) Home Entertainment IT Software & Gaming Diapers Communications Providers Mobile Phone Handsets IT Hardware & Peripherals Cars Harder to build a fan base Easier to build a fan base CarcategoryinPoland FanZ Score % CAR CATEGORY 18 12AVERAGE ACROSS ALL CATEGORIES BRAND FANS POSITION Kia 18,801 62 BMW 17,150 65 Mercedes-Benz 14,346 71 Honda 9,944 85 Volvo 8,881 88 Skoda 6,731 94 Renault 6,008 96 Chevrolet 5,004 99 Fiat 4,945 100
  • 92.
    Brand Value Perceptionis correlated with fandom. Good value brands that are able to justify their premium price tend to have the most fans. Since fan pages provide the opportunity to keep in touch with brands, it is not surprising that consumers reach out more to desirable but attainable brands. Brand Personality Perception is another factor that is also correlated with brand fandom. Brands that have more fans tend to be perceived as particularly creative, trustworthy, and desirable. If your brand already has this kind of personality you might find it easier to attract fans. Factor3:BrandPerception Does Your Brand Need Social Media and Brand Fans? CASESTUDIES Let’s now look at several brand pages with high fandom from the perspective of these three factors: country, category and brand perception. iPhoneinUSA Apple iPhone is one of the most followed brands in the world. There are hundreds of iPhone-related pages on Facebook and the “Facebook for iPhone” app page has more than 77 million active users a month. The mobile handsets category has a large number of followers and in the key US market, iPhone is characterized as a creative brand, which helps to justify its premium price. BlackBerryinBrazil Facebook is clearly the major global social networking platform currently; it can even help brands build fan bases in markets, such as Brazil, where the popularity of the local leading site Orkut outstrips that of Facebook. BlackBerry has built a strong social following in Brazil and has the third-highest number of Facebook fans in the country. The country, category and brand type are well suited to social media and this growing brand has taken advantage of this and attracted more than 150,000 fans in Brazil by creating a easy-to-use page with quality ValueDmapshowingindexedFanZscoresbysegment HIGH PRICE GOOD VALUE JUSTIFIED PREMIUM POOR VALUE EXPENSIVE 126 41 86 222 HIGHDESRIE BrandPersonality(CharacterZ)correlationwithFanZscore CREATIVE 0.29 TRUSTWORTHY 0.24 DESIRABLE 0.23 WISE 0.10 INCONTROL 0.10 FACTOR APPLE iPHONE RATING Country USA Category Mobile Phones Brand value Justifying premium Brand personality Creative FACTOR BLACKBERRY RATING Country Brazil Category Mobile Phones Brand value Expensive Brand personality Different, Creative
  • 93.
    Does Your BrandNeed Social Media and Brand Fans? MangoinSpain With more than 2.1 million fans on Facebook, the clothing brand Mango has the second-largest number of fans in Spain. The brand is seen as “good value” and described by consumers as sexy, creative, and desirable. This is reflected in the Mango Facebook page, which provides information about the brand and its objectives, shares photos and videos with fans, informs fans about special events and features an “Emotions Ranking” app which allows women to share their mood and find out how other “Mango women” are feeling. McDonald’sinHungary Although Facebook offers potential global reach, your brand may need to consider extending beyond this to enjoy global social media success. Brands that want to maximize their global fandom also need to embrace other local social platforms. For example, McDonald’s has an exceptionally strong brand position in Hungary, however, the level of McDonald’s fandom is very low compared to other countries. FanZ RANKING - LEARN FROM BRANDS THAT ARE ALREADY SUCCEEDING By covering the same brands and categories in the BrandZ research across more than 20 countries we are able to create a global ranking of the most followed brands in the world. RESEARCH DETAILS This report was compiled using 2010 BrandZTM data – a total of over 100,000 consumer interviews and over 8,000 brand cases. These interviews were carried out across more than 20 countries with an average of more than 18 categories per country. The FanZ score is based on the percentage of relevant category users who are a social media fan or follower of any one brand in that category. The FanZ question was only asked among social media users (people who participate in any on-line social networking groups - e.g. Facebook, MySpace, Bebo, Twitter or other on-line communities, groups or blogs). To enable cross-country comparisons we factored the data based on web penetration across countries. This article is based on research conducted using Millward Brown’s database, September 2011 Summary-lessonsformarketers Microsoft, Pampers, Apple, and Apple iPhone are the clear leaders with FanZ scores that significantly outperform both the global average and the rest of the Top 20 Although IT and telecom brands dominate the list, the Top 20 ranking also contains brands from many other categories including cars, fast food, beer and credit cards. Top20BrandFandomRanking MICROSOFT 10.5 PAMPERS 8.0 APPLE 5.9 iPHONE 4.8 NOKIA 3.8 McDONALDS 3.5 HP 3.5 VISA 3.5 SONY 3.4 AMAZON 3.2 HEINEKEN 3.1 COCA-COLA 3.1 EAGAMES 3.0 BMW 3.0 DELL 2.8 NIKE 2.8 STARBUCKS 2.6 SAMSUNG 2.5 ACER 2.3 TOYOTA 2.2 FanZScore(%) GlobalAverageFanZScore=1% FACTOR MANGO RATING Country Spain Category Apparel Brand value Good value Brand personality Sexy, creative, desirable FACTOR McDONALDS RATING Country Hungary Category Fast food Brand value Good value Brand personality All traits low endorsement As we would expect, stronger brands generate more fans, but we also found that the brands which generate the most fans tend to have creative, trustworthy, and desirable personalities. Premium brands that are able to justify their high price may also find it easier to build a large fan base. Some categories tend to generate more brand fans, such as technology and also other categories that have always experienced more word of mouth communication. Levels of fandom vary around the world: there are more social media brand fans in Korea, Sweden, the USA and Poland, and considering the smaller absolute penetration of social media, a proportionately large number in Brazil and China. Fans are very valuable; they have much stronger brand equity than non-fans. For an average brand, 62 percent of fans believe it has advantages over other brands, versus just 19 percent among non-fans. Fans spend four times on the brand they are a fan of compared to non-fans. This is not something we should attribute to the fan page itself; rather this is due to the brand relationship which led someone to become a fan in the firstplace.Thechallengeforfanpagesisthereforetodeepenandsustaintherelationship among people who are already very positive about the brand.
  • 94.
    rands in theU.S. have been dealing with this issue for some time already, but the fact that the country is on the verge of becoming a nation of minorities adds a sense of urgency to the matter. They must win ethnic segments to stay relevant and grow in a multicultural American environment. Unfortunately, there is no absolute answer to this dilemma because the situation each brand faces is different. However, here are some important guidelines that can help you successfully navigate today’s multicultural marketplace: B By David Burgos Vice President of Cultural Strategy, Millward Brown @DavidBurgosatMB EthnicTargetedMarketing: DoWeReallyNeedIt? First published in the August 2011 edition of CMO Council, www.marketingmagnified.com To target or not to target? That is the question marketers often ask themselves when trying to reach out to an ethnically diverse population. Should I develop a separate strategy for each of the segments that comprise my market, or would having a universal approach be sufficient? What elements of my marketing mix should I focus on if I decide to follow a targeted route? Will the potential results of a targeted initiative be worth the investment needed to implement it? 1. Don’t be an ignorer Virtually all US marketers acknowledge the importance of ethnic segments. However, many still believe multicultural marketing is not for them. Some believe this because they feel their product category is a commodity; others assume ethnic consumers are just not interested or can’t afford their offering. Quite often, these assumptions are based on stereotypes. So whether you represent a luxury brand or a product in a category with little differentiation, it is important to understand the relationship ethnic consumers have with your brand. They are an integral part of today’s new mainstream, so you still need them to stay relevant in the future. 2. Try to find the right balance between customization and standardization Similar to international marketing, brands operating in a multicultural marketplace have to find the right balance between customization and standardization. Going too far in one direction can mean efficiencies are lost. Going too far in the opposite direction can cause your proposition to become less relevant to consumers. Unlike the international discipline, however, the fact that multicultural marketing deals with diverse people coexisting in the same place poses unique opportunities and challenges. While a multicultural marketplace does favor the development of cross- cultural strategies for example, marketers should be careful because what they do for one group is likely to impact the other segments. Consumers do not live in ethnic versus general market worlds. 3. Incorporate the ethnic perspective in your brand’s foundational research It is common for brands to develop their marketing strategies based on the needs of non-Hispanic whites (i.e., the general market) and then try to adapt these programs to the nuances of ethnic segments. Incorporating the ethnic perspective at the foundational level has proven to be more effective and efficient.You can determine early on whether and to what extent a targeted approach is needed. Often a tweak in your advertising will be all you need to make it culturally relevant, but sometimes more profound actions are required, whether it is around your brand positioning, distribution strategies, pricing structure, or even product development. 4. Engage your audience in a culturally intelligent way that avoids forcing the ethnic factor Plenty of data shows that targeted advertising is likely to do better than non-targeted communication among ethnic consumers. However, targeted advertising does not guarantee success. To be successful, targeted ads still have to meet the basic principles of any advertising campaign. The problem is that we often focus so much on the cultural aspect of communication that we forget about those principles. Remember that race or ethnicity is just one of many factors that define consumers as human beings, and is certainly not always the most relevant. Practice discretion in how and when you use it—a process that I call “intelligent targeting” in my book, Marketing to the New Majority. Consumers notice forced cultural elements and react negatively to them. 5. Do not minimize the role of culture to casting Cultural relevance is not synonymous with having diverse casting in advertising. In fact, consumers are likely to reject a “one-of-each” approach as being unrealistic. Include imagery that mirrors the degree of multiculturalism found in your particular target audience. Dial up diversity and cultural cues if the goal is to attract more ethnic consumers, but always make sure your casting selection flows nicely within the story. 6. Do not limit your conversation with ethnic consumers to ethnic media Ethnic consumers are exposed to both targeted and mainstream media. Undeniably ethnic media favors the use of targeted messages and provides a culturally relevant context for your communication. However, mainstream media also offers interesting opportunities within the context of the new mainstream. A concern marketers face with regard to the use of mainstream media to target ethnic segments is that the message can alienate their mainstream consumers. The risk of this happening is actually low. Non-Hispanic whites don’t necessarily view so-called ethnic communications as being geared toward someone other than themselves, even if they feature an all-ethnic casting or cultural cues from other racial or ethnic groups. 7. Continuously assess how both your targeted and non-targeted strategies are doing among ethnic segments It is a best practice to always look at how different ethnic segments perceive your marketing campaigns, even if they are not specifically targeted to them. Brands have faced damaging situations for not doing so. A recent example is Nivea’s “Give a Damn” campaign. When you assess the ROI of your programs, consider not only the money needed to develop targeted approaches (spending perspective), but also the money you would be losing if you hadn’t implemented them.
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    rik’s book illustratesboth the complexity of neuroscience as a field and the crucial implications it has for brand owners as they seek to make their brands more desirable to consumers and win in the marketplace. It is, therefore, unsurprising that marketing and advertising conferences now incorporate a strong neuroscience emphasis, and many recent papers and articles maintain that scientists’ increased understanding of the brain will change marketing and the way we measure it. Buy-ology , by Martin Lindstrom, makes similarly strong claims: that neuroscience will play a revolutionary role in research and marketing in future. As a result, many marketers challenge accepted modes of brand and advertising development and research on the grounds that “neuroscience says” that what we’ve done before is wrong. Similarly, we now see neuroscience being cited in many brand and advertising decisions. The phrase “neuroscience proves...” is increasingly being used to justify a new model of advertising response, brand strategy or advertising research tool (though it’s often useful to examine just how much actual proof follows such statements). Most crucially, over the last few years there has been a blossoming of neuromarketing agencies who claim to deploy the methods used by neuroscientists to answer marketing questions in a way that conventional research cannot. So we’d be forgiven for believing that traditional qualitative (focus group-based) and quantitative (survey-based) techniques are not sufficient anymore and that we need to turn to the methods used by cognitive neuroscientists, such as brainwave measurement (EEG), brain scanning (fMRI) and other biometrics, to really understand how consumers will respond to marketing. However, despite all the discussion about neuroscience, the vast majority of brands and ads are still researched using traditional methods. Likewise, over the last few years, papers have periodically emerged that question the value of the whole area. So who’s right? Are we poised at the start of a revolution or is neuromarketing overhyped wishful thinking? E By Graham Page Executive Vice President, Consumer Neuroscience, Millward Brown Using neuroscience effectively Increasingour brainpower Editor’s Note: This article is a chapter written by Graham Page excerpted from The Branded Mind by Erik du Plessis
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    The current stateof play Our firm, Millward Brown, conducted its first neuroscience project in 2004, and since then we have reviewed all the key methodologies available in this area, working with our clients, neuromarketing practitioners and academics. Our experience is that marketers are increasingly turning to neuromarketing and they will continue to do so more and more. But this has been a gradual process for several reasons: • Marketers are rightly being cautious. Neuromarketing is new and to some people controversial. So they are working with partners who they trust to do their homework before adopting more widely. • There are still significant practical hurdles. The technologies are not available everywhere, and the logistics of brainwave measurement or brain scanning are not trivial. Testing robust numbers of participants is often expensive - or worse, not done. • The extreme claims of some of the early practitioners in the field have inspired some skepticism. • Many of our clients believe their work in this area has the potential to generate significant competitive advantage and so are understandably coy about sharing too much publicly. • Most marketers quickly realize that neuroscience methods in isolation can be hard to interpret and don’t stand alone. This last point is crucial. Over the last six years we have examined all the main techniques in the area and compared them to the existing qualitative and quantitative work we do to ensure a realistic perspective on what the science can and can’t say. We’ve seen that there is clear and significant value in certain neuroscience methods, but only when used alongside existing methods rather than as a replacement and only if interpreted with care by people with experience in the field. To this end, in 2010 we created a dedicated neuroscience practice to ensure that, as a business, we would implement neuroscience-based approaches in a realistic manner that added to our insights about consumers. Applied tests When deciding which methods to use, we have applied the following tests: • Does the method tell us something meaningful about brands or marketing? • Does the method tell us something we don’t already know (and enough to justify the costs)? • Is the method practical and scalable? There are neuroscience-based methods that meet all three of these tests. These are: implicit association measurement, eye-tracking and brainwave measurement. Excerpt from The Branded Mind
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    Implicit association measurement Whilenot strictly speaking a neuroscience technique, what it shares with more biometric methods is the principle of inferring consumers’ responses rather than asking direct questions. The approach measures consumers’ reaction times or accuracy on tasks that are systematically biased by their reactions to brands or ads. At first this sounds strange, but the approaches capitalize on the way the brain stores information - as a network of connections rather than isolated units. It is for this reason, that, for instance, thinking about the idea of a “doctor” means you will tend to respond faster to a related idea like “nurse” than an unrelated one like “plumber.” Similarly, if you feel positive you will tend to respond faster to positive words and slower to negative ones, but this is reversed if you feel negative. Implicit association methods have a long history of use in cognitive psychology to infer unstated processes and responses, especially in researching socially sensitive areas, such as people’s biases towards different races or genders. They offer market researchers a window to the raw ideas and feelings stirred up by brands and ads, prior to any filtering for sense or social desirability, which still may play a role in shaping consumers’ responses. We have used these methods in a variety of markets and with a range of clients to understand the implicit associations activated by brands, by ads and by hard-to-discuss stimuli such as brand logos. For instance, we recently used this approach to research an award-winning Australian TV ad for Allen’s (a confectionery brand). The spot featured a giant doll walking the streets, blowing bubbles which turn into the product and rain down onto a crowd of children and parents. The ad was designed to reinvigorate the brand, which, although a long-time favorite, had lost some relevance and presence in the market, by reminding consumers of the magic of childhood. The ad proved to be hugely engaging but the implicit association test identified that the ad worked in a way somewhat different from that expected. While explicitly consumers played back messages of fun and happiness, implicitly, the spot also communicated irresistibility and playfulness. Also, while explicitly the ad was not directly persuasive, the implicit measures revealed that it strongly reawakened the emotional connection to the brand. Therefore rather than being a simple nostalgic look at a trusted favorite, the ad functioned very strongly as a modernizing ad while highlighting the playfulness of childhood and reinvigorating the emotional resonance of the brand. Similarly, in Poland we recently conducted some logo research for a financial services client. Logos are a topic that consumers find difficult to talk about as they are not usually subjects of much thought but they are full of nuance and symbolism. Although the results from explicit ratings correlated with results from this implicit test, the implicit method pulled out a much clearer winner, suggesting that this is a useful approach for this type of research. Excerpt from The Branded Mind
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    On the whole,we’ve found this type of approach allows us to see in more depth whether a brand is achieving its desired positioning, or if a campaign or logo has the potential to shape a brand’s perceptions in the intended way. Eye-tracking research Eye-tracking technology is now widely used, partly because it has become simpler to implement and cheaper than in the past. The benefits are clear: eye movements indicate the focus of visual attention with more detail and accuracy than self-reported answers. However, the method doesn’t reveal why a particular area of an ad catches the eye or how people respond to it, which is why it can be difficult to interpret in isolation. We have used this approach in a number of markets and have found it a useful additional diagnostic technique that helps explain advertising or packaging performance as measured via conventional survey methods. In one example, we tested a particular scene from a well-known Skoda Car ad in which the car is built entirely from cake. This ad was shown to be powerfully branded to Skoda in our Link survey work and eye-tracking helped illustrate why. Visual attention was clearly focused on the Skoda badge when it is affixed to the front of the cake-car. However, this contrasted with dispersed visual attention at the end of the ad when the Fabia nameplate is mentioned, which was a useful diagnosis of the weaker nameplate- branding we saw in the survey results. In a similar project for RoC skincare, we found a powerful illustration of a communication barrier due to misdirected attention during a key scene. Using this information the client was able to re-edit the ad and generate a much stronger final film. Brainwave measurement Brainwave measurement is perhaps the most complex area in neuromarketing, due to the variety of systems and companies offering them. Millward Brown conducted one of the first large- scale commercial EEG projects in the U.K. for the Newspaper Marketing Agency in 2005. Since then we have partnered with U.S.- based EmSense to integrate EEG and other biometrics with survey tools. Using a headband with dry electrodes, EmSense collects EEG and secondary biometric data, such as heart rate, respiration, blink rate and body temperature. This method not only makes the equipment less intimidating for participants and simpler to apply, we have found it is also more cost-effective than conventional EEG equipment, which tends to use full-head skullcaps and gel to make connections with the scalp. Consequently, it enables full quantitative testing (e.g., samples of over 100 versus the 20 or so typically used in conventional EEG) and so allows cross-analysis with explicit questions and metrics. We have therefore deployed this technology in several countries and it has become an important component of the ad development work that we do. This is because brainwave data can provide a powerful diagnostic of people’s reactions to an ad or brand experience on a moment-by-moment basis, revealing responses that are so quick or fleeting that respondents may not even remember them, let alone be able to objectively report them. This can also be particularly useful in markets such as India, China and Latin America, where the tendency for research respondents to be positive on surveys Excerpt from The Branded Mind
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    is stronger andwhere we may miss some negative responses as a consequence. We conducted Link survey based research on the Dove “Evolution” film - an engaging, emotionally resonant and powerful communicator of the core idea of encouraging real beauty. The EmSense data illustrates the journey consumers take to get to that set of responses and which creative elements drive this response. While the model is being made-up, positive emotion actually rises (which is not something viewers report verbally). There is also a crescendo of both positive emotion and cognition at the moment it is revealed that the film is about the making of an ad; as understanding blossoms and the cleverness of the idea is apparent. This is crucial to the overall positive reception the film generates. However, it is also clear that as the implications of this moment sink in, positive emotions decline as the point of the ad is considered, which is what gives the communication such power. Work using this form of EEG with other clients has helped reveal and address issues such as weak communication, branding or disengagement with key protagonists. It has also evidenced which elements of an ad should be retained in cutdowns of long-form ads and which elements to pull out for use in other parts of campaigns. While we have focused on these three approaches, it is important to remember that there is no one-size-fits-all neuroscience-based technique; depending on the individual client issue one approach will be better suited than another. For instance, we have used fMRI with the Royal Mail for a project about the effect of physical versus virtual media in marketing effectiveness. However, it is limited in its scalability so we have used it less extensively than the other methods outlined above. It is important, however, that marketers use the right tools for the issue they face, rather than treating neuroscience as a single entity and trying to use one tool to do everything. No substitute for talking to people It is a misconception, and a scary one, that marketers will be able to (or want to) just measure people’s responses to brands via electrodes and work out what they really want. There is still no substitute for talking to people, as this is the only way we can understand the whole meaning of their relationships with brands and products. The point of market research is to generate insights that lead to more desirable brands, rather than to use the latest methods for the sake of it. For this reason we don’t believe neuroscience methods can ever replace the need for conversation with consumers, though we do believe they can be a powerful complement to it. In addition, on a practical level, survey-based techniques have been shown over many years to have a demonstrable link to consumer behavior - and such linkages are still being forged for neuroscience methods. Turn their backs We don’t believe that marketers need to turn their backs on tried-and-true research techniques in favor of neuroscience, but we do believe that neuroscience can offer an additional perspective on consumer responses and motivation. Therefore, the approach we’ve taken has been to roll out neuroscience-based methods alongside - and integrated with - existing tools, rather than as a replacement. Each method is used when it will add value and when it is relevant to the client issue. When should neuroscience-based techniques be used? Neuroscience- based techniques will tend to add the most value under certain circumstances: Dealing with sensitive material. This is when qualitative/ survey methods are most vulnerable to distortion, so methods that don’t rely on explicit questions can reveal unstated attitudes more effectively. Excerpt from The Branded Mind
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    Dealing with abstractor higher-order ideas. Consumers face challenges when trying to talk about the often complex ideas at the heart of many brands’ positioning. Implicit association methods, in particular, can be useful at probing for ideas that participants think sound strange or overblown on a survey or which they might discount as irrelevant when answering explicit questions. Probing for transient responses to ads or brand experiences. Consumers are great at talking about the gist of an ad or brand or experience but they may not be able to articulate all the steps in the process that got them there. Biometric methods, such as EEG, can add value in pinpointing the emotional or cognitive highlights and low points in a piece of creative, or the focus of attention, which can provide useful insights for developing more effective campaigns for brand experiences. Giving more detail on consumers’ feelings. Feelings can be difficult for people to talk about, though qualitative and survey-based methods can help people do this. However, neuroscience methods can add an additional level of detail here, about the depth of emotional response, the timing of these responses and the elements of an ad or brand that are driving the way consumers feel. Given the importance of emotion in motivating behavior, these methods have a role to play here. In terms of specific research applications, the differing advantages of each method mean they lend themselves to different areas of research. Implicit association measurement is well-suited to brand strategy work, product testing, concept testing and assessment of communication from marketing campaigns. Eyetracking is strong on in-store and online marketing optimization and advertising development. Brainwave measurement adds greater detail in these areas, especially regarding emotional and cognitive responses, and thus lends itself to advertising optimization. Best practices Based on our experience researching and implementing these methods, we suggest the following best practices to get the most out of neuroscience: Be critical. The technology can be alluring, but the same questions (detailed above) that would be asked of any conventional research technique should be asked of these methods. Ask for proof. Look for experience. This is a complex area, so familiarity with the approaches and a scientific perspective is important to understand what is claim versus reality and when neuroscience adds most value. Likewise, experience in drawing together neuroscience and conventional research is key to maximizing the value. Integrate. Neuroscience-based methods do not reveal the inner truth; rather they provide additional perspective on consumers’ responses to brands and marketing, which needs interpretation in the light of other information. A holistic approach reveals greater insight than conventional or neuroscience methods alone. A standard tool Our experience suggests that in the future, neuroscience-based research will be a standard tool in the researcher’s toolkit but it won’t be the only tool. Neuroscience techniques on their own can’t fully explain consumers’ responses. The most complete understanding will come from integrating information rather than looking at one perspective alone and using the right tool at the right time. Excerpt from The Branded Mind First published in the May 2011 issue of Quirk’s Marketing Research Review
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    KNOWLEDGE POINTS Knowledge Points aredrawn from the Knowledge Bank, consisting of our databases of over 150,000 brand reports and 95,000 ads, as well as 1500 case studies
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    dvertisers often askus how many GRPs they can put behind an ad before it “stops working.” They also wonder if past copy can be rerun or if it has no remaining value. These are important financial issues for them. Producing TV ads is expensive and requires a long lead time. Airtime may need to be booked months before actual airing, and an assessment of the number of ads required needs to be made early. How might TV ads wear out? Conceivably, an ad might wear out in its ability to accomplish any one of the basic advertising tasks. An ad could wear out in terms of: • Generating engagement, i.e., making people aware that the brand has advertised • Creating an attitudinal or empathic response among viewers • Communicating messages or impressions • Producing a brand response, including sales Engagement Millward Brown measures Engagement through the Awareness Index, a metric that describes a brand’s ability to make people aware that the brand has advertised. Our evidence suggests that in this respect, TV ads very rarely wear out. We analyzed 450 ads that aired in two or more bursts and observed that the Awareness Index (AI) changed in only 6 percent of cases. (And in the cases where the AI changed, the direction was evenly split: AIs went up in 3 percent of cases and down in 3 percent of cases.) Ads that are good at generating branded awareness tend to remain so over time. However, factors external to the ad itself can occasionally seem to cause wearout in this respect. One such factor could be the ad’s content — for example, if a featured celebrity falls out of favor with the public. But another more common cause of apparent wearout is heavy media spending over a short period of time. When this occurs, multiple exposures will net more repeat viewings than new ones, limiting any incremental increase in advertising awareness. Attitudes/empathy Most of the time, attitudes toward an ad hold steady over bursts. The two charts below, generated from data in our tracking database, illustrate this. For both the positive statement “You enjoyed watching [the ad] a lot” and the negative statement “You’re getting fed up with seeing it,” there is a strong correlation between the level of agreement on the first and second bursts of advertising. When we do see attitudinal wearout, it tends to occur when an ad that some viewers find irritating is aired with heavy spend. Alternatively, an ad can become less enjoyable if some aspect of it goes out of fashion. For example, we tracked an ad that featured a current pop song, which aired in three bursts over a two-year period. During the first burst, 71 percent reported enjoying the ad. But by the third burst, the enjoyment score had plunged to 56 percent, as the song had lost its appeal and freshness. KNOWLEDGE POINT DOTVADS “WEAROUT“? Broadly speaking, the response generated by a TV ad doesn’t change much over time. True “wearout” of a TV ad is rare, and many TV ads could have a longer useful life than advertisers realize. The one real exception to this rule has to do with ads that focus on product news. Such ads will become less effective over time, because the people who are receptive to the message will be persuaded quickly, while those who are not receptive will not be won over by repeated viewings. Saturation of media weight over a short space of time can also create the impression of ad wearout; however, in such cases it may be the media buying strategy, rather than the effectiveness of the specific execution, that needs to be reviewed. A FIGURE 1: Enjoyment FIGURE 2: Getting fed up with seeing 100 90 80 70 60 50 40 30 20 10 0 0 10 20 30 40 50 60 70 80 90 100 % ‘You’re getting fed up with seeing it’(141 ads) FIRST BURST SECONDBURST % ‘You enjoyed watching it a lot’ (258 ads) 100 90 80 70 60 50 40 30 20 10 0 0 10 20 30 40 50 60 70 80 90 100 FIRST BURST SECONDBURST
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    KNOWLEDGE POINT DOTVADS“WEAROUT“? Communication In terms ofcommunication, the effectiveness of TV ads tends not to change over time. The messaging does not wear out, as shown in the chart below, where a key message registers consistently on two different bursts of advertising. This consistency is due to the fact that viewers don’t tend to notice new things each time they see an ad. Rather, they focus on the parts of the ad that they initially found involving. Brand and Sales Response The area in which TV ads are most likely to wear out is in their ability to generate responses to brand measures and/or to motivate new purchases. This type of immediate response is measured through our persuasion questions, and wearout in this type of brand response is likely to occur in ads that depend on news. Ads with new and different messages will typically convert all the consumers they are capable of converting in a fairly short time. This happens because people who do not notice the message or don’t find it relevant are not likely to notice it or find it more relevant with subsequent viewings. Thus the “news” quickly ceases to be new, and there are no viewers left to be persuaded. This is illustrated in the following example, where the level of news and persuasion decline over time, even though enjoyment of the ad holds steady. Recognizing and Dealing with Wearout As we have demonstrated, wearout sometimes occurs—or appears to occur—in engagement, when saturation of media weight over a short space of time creates the impression that the ad is no longer having impact. These cases, where spend produces increased frequency at the expense of coverage, shouldn’t be regarded as wearout. Rather, the apparent decline in ad impact is an effect of diminishing returns. If the ad is aired again sometime later, its ability to generate branded impact will most likely be as strong as it was initially. It may be that the media strategy is intended to build heavy frequency, in which case this outcome is to be expected. But if this isn’t the intention, the media strategy may need to be revisited. While the attitudes produced by TV ads tend to remain consistent over time, some ads do have the potential to generate increasing levels of irritation on repeated viewing, and ads that reference current trends or events in popular culture may become less enjoyable over time. It is worthwhile to monitor these attitudes over time for long- playing ads. Ads that focus on product news are definitely susceptible to wearout. Such ads will become less effective over time, because the people who are receptive to the message will be persuaded quickly, while those who are not receptive will not be won over by repeated viewings. In anticipating whether or not this is likely to occur, it is important to consider the ad’s objectives and whether the message is intended to be perceived as new. An ad with a message that is new, relevant, and different may challenge consumers’ buying habits when they see the ad, thus increasing their consideration for the brand. This may lead to increased trial. An ad with a radically different creative style may accomplish the same effect. As we have said, wearout will generally occur only in the ad’s ability to persuade, as measured by our Immediate Persuasion question. Can we predict the point at which an ad’s ability to persuade has worn out? Every case will be different; even within each country, the variability in the effectiveness of the advertising copy can be massive and media plans can vary enormously. But we can say that this wearout is likely to occur when the the ad’s reach has been maximized. Once the ad has been noted by the bulk of its likely viewers, its news value will dissipate. We can provide some general country-specific guidelines based on our knowledge of how advertising awareness builds in response to spend. By assuming average weekly spend (per country) for an average ad, and average effects from other conditions, the cumulative GRP spends in the table below will generate around 90 percent of the advertising awareness likely to be achieved. FIGURE 3: Key message - strongly suggests Key message - % strongly suggests (118 ads) 100 90 80 70 60 50 40 30 20 10 0 0 10 20 30 40 50 60 70 80 90 100 FIRST BURST SECONDBURST FIGURE 4: News does wear out Enjoyment Newinformation Morelikelytobuy Jan-FebSep-Oct Mar-Apr 88% 67% 66% 83% 61% 62% 85% 55% 50% Country GRPs Country GRPs Philippines 7000 Czech Rep 1350 Indonesia 3350 Denmark 1300 Vietnam 2400 Hungary 1300 Chile 2100 Ireland 1200 Portugal 2000 South Africa 1200 Turkey 2000 India 1150 Pakistan 1750 Malaysia 1150 Romania 1750 Sweden 1150 Brazil 1700 Russia 1100 Italy 1650 Australia 1050 Thailand 1500 China 1000 Mexico 1500 France 1000 Netherlands 1500 Japan 1000 Poland 1500 USA 1000 Spain 1450 Germany 900 Argentina 1350 UK 900 FIGURE 5:
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    KNOWLEDGE POINT DOTVADS“WEAROUT“? We should emphasisethat this type of wearout relates only to ads dependent on news for their effectiveness. Also, these are generalized guidelines only. The actual effects of any wearout that occurs will vary by a whole host of factors relating to the ad, brand, category, and market. Each of these factors can have a meaningful impact on the rate at which the ad wears out as well as the effectiveness it retains after the ”news” has faded. When an ongoing campaign depends on challenging consumers by delivering news, it needs to be periodically refreshed with new arguments and/or new executions, for two reasons. First, the “news” needs to be kept new and relevant to those persuaded by the first presentation, and second, a new approach may persuade those who were previously unconvinced. However—and this is key—just because the news value has dissipated, the ad is by no means worthless. It will continue to contribute to sales by reminding people of the good things about the brand and the interesting and engaging aspects of the brand’s personality. When to move on? The majority of campaigns are successful without relying on a constant supply of news; instead, equity and clarity of positioning is built through consistency of messaging that is memorably associated with the brand (as measured through the Awareness Index). In these cases, ads can have a long shelf life. Repetition can help to build a brand in the long term, even if a short-term brand response is minimal. So before an ad or campaign is assumed to have worn out, long-term sales effects should be investigated. But this doesn’t necessarily mean that the same execution can be used ad infinitum. While it’s true that many executions could be used longer than they are currently, there are a number of reasons for advertisers to move on with new ads. To ensure long-term success, brands need to project a sense of leadership. To create this sense of a brand leading the way, new ad executions are likely to be needed. In addition, the competitive context needs to be kept under review; if a competitor changes campaign, this could negatively affect your sales, making it necessary to refresh your activity. It is also important to look at the broader picture, considering areas such as the continuing relevance of the strategy and positioning, changes in the target group, and where the brand is in its lifecycle. Ultimately the judgement will be one that assesses the opportunity cost: Will a new ad, with a potentially refreshed (or new) message, be more effective than an existing ad, and will that increased effectiveness justify the cost of creating that ad? Campaign Wearout Campaigns can wear out in the same ways that individual ads can. In the example illustrated by the chart below, a long-running campaign featured a particular celebrity with the potential to irritate. Irritation did grow over the course of the campaign; this was particularly evident in ad L, but even ad P, in which strenuous efforts were made to address the irritation issue, was still found to be considerably more irritating than the early ads in the campaign. Another possible cause for campaign wearout is related to changes in society and attitudes over time. A good example from the UK is the PG Tips “Chimps” campaign, which was dropped after 40 years because attitudes toward performing animals had changed. When assessing campaign wearout, some specific issues need to be taken into consideration. For example, an apparent issue could be due to specific executions rather than the campaign as a whole; a new ad may be performing less well in terms of brand integration or clarity of message, or the mix of ads in the campaign may have changed and become less effective. In one example, wearout of branded impact seemed to be occurring over the campaign. Subsequent ads were becoming less efficient. We found two reasons for this. The weight of spend was increasing over time, resulting in a degree of media saturation. But there was also a lack of product integration in the later ads that indicated that the structure of the individual ads needed to be refocused. Additionally, some campaigns that seem to be wearing out can be revived, perhaps by a product innovation, or a new slant to the scripts. How does the use of PVRs affect wearout? It’s possible that increased adoption of PVRs may cause wearout of TV ads to increase. This could happen if PVR viewing makes people more likely to fast-forward through ads they have seen before. However, currently there is little evidence that such behavior has a significant effect, and research by Millward Brown suggests that ads seen in fast-forward mode can be just as strong at sustaining ad awareness, provided they’ve been seen at regular speed previously. (See our POV “Who’s Still Afraid of the DVR?” ) FIGURE 6: Irritation with campaign grows % 13 15 12 15 17 11 11 17 18 20 22 32 23 28 25 19 19 20 A B C D E F G H I J K L M N O P Campaignaverage Categoryaverage Ad
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    hile most partsof the world have been officially out of recession since the summer of 2009, the economic recovery in most Western countries has not been strong. The current uncertainty about the economic climate, especially the speculation that we may experience a double-dip recession, is making both consumers and marketers nervous. During the 2008 downturn, there were regular reports of consumers struggling with their finances. For example, two-thirds of Australians reported that their spending habits were affected by the financial climate, with four in ten reporting that they spent less on staples. (And technically, Australia was not even in recession.) In the United States, spending on credit cards increased markedly in areas of high unemployment, and fewer consumers reported paying their credit card bills in full every month. During times such as these, in the face of pressure on people’s budgets, many marketers choose to meet profit targets by using promotions to maximize short-term sales while cutting investment in long-term build-branding activities. The Importance of a Strong Brand While the reaction to cut investment in seemingly non-essential activity is understandable, it doesn’t bode well for brands in the long term. Our analysis (see chart below) shows that as a group, the strongest brands—those in the BrandZ Top 100—have outperformed the S&P 500 since the recovery began. Conversely, brands that were already weak going into the recession tended to suffer disproportionately. A powerful example is the retailer Woolworths. Though the chain went out of business in the United States in 1997, it was still conducting business in the UK during the first decade of this century. However, its brand equity pyramid had shrunken considerably from 2001 to 2008, and Woolworths failed to survive the recession, closing its doors in 2009. Clearly, brand strength needs to be nurtured and maintained through good times and bad. Based on our decades of experience studying and advising brands, we can make five recommendations for marketing and maintaining brand health in uncertain times. 1. Review your marketing plans It is never a bad idea to review your marketing plan, but during challenging times, it is especially important to re-examine the fundamentals; both vulnerability and opportunity could be uncovered. An example of a brand that addressed a vulnerability is Barclaycard. In the UK, Barclaycard ran a successful celebrity-based campaign for many years. But by 2008, it was clear the brand was losing relevance. It was seen as old-fashioned and was not appealing to the new generation of card holders. A major research program investigated the attitudes and behaviors of these younger consumers, and led to the development of the completely new “Waterslide” campaign. Sales modeling showed the new campaign generated £22m profit. An upscale brand in the personal care category found a way to turn a potential vulnerability— its premium price—into an opportunity. Back in 2000, Dove recognized the challenge for its premium moisturising soap in its Turkish markets. Because it was much more expensive than regular soap, Dove was traditionally targeted at upscale women. But during the 2001 recession, a new brand team crafted a value-oriented appeal to middle-income consumers—a far larger audience—based on the proposition that Dove both cleans and moisturizes. Dove more than doubled its share of spend from 2000 to 2001, resulting in a market share gain of 5 percentage points by the middle of 2002. In times of economic uncertainty, marketers tend to shift their focus from long-term strategy to short-term sales. However, lessons from recent recessions provide powerful arguments for maintaining a longer-term view, even in the face of pressure to cut advertising in favor of promotions. Marketers who resist this pressure and use their budgets effectively and creatively will find that their brands emerge from the tough times in good competitive shape. W KNOWLEDGE POINT MARKETINGIN UNCERTAINTIMES KNOWLEDGE POINT FIGURE 1: BrandZTM Portfolio vs. S&P 500 (Apr 2006-2011) ©The Brand Dynamics Pyramid and the underlying methodologies are the copyright of Millward Brown FIGURE 2: The Decline of Woolworths 7% 55% 67% 79% 93% 32% 59% 75% 85% 1%Bonding Advantage Performance Relevance Presence Base (400) (400) 2001 2008 BrandZTM Portfolio S&P 500 60 40 20 0 -20 -40 -60 (%) Jan07 Jan08 Jan09 Jan10 Jan11 Source: Bloomberg; MB Optimor London Analysis 41.8% -3.7%
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    2. Beware ofreducing your ad spend While reducing advertising spend can seem to be a logical way to bolster short-term profitability during a recession, it can also deliver negative consequences. This is in part because advertising has both long- and short-term effects on brands. On average, the ratio of long- to short-term effects is about 3:1, though this varies widely across campaigns, and we have seen campaigns with ratios as high as 5:1. (Note: Short-term effects are generally defined as those that occur in the eight weeks following the start of advertising.) While brands that “go dark” don’t seem to suffer major shifts in brand perceptions, 60 percent of them deteriorate on at least one key aspect. Such losses can herald problems in the future, since once declines set in, they can be hard to reverse. The chart below provides an example. A brand came off air in one region (Region B) while it continued advertising in the rest of the country. Within a year, market share had dropped 2 percent in Region B while it held steady elsewhere. And—critically— even when advertising resumed in the dark region, the share in that region continued to lag behind the rest of the country in the two subsequent years. The long-term effects of advertising are also illustrated by the relationship between share of market (SOM) and share of voice (SOV). It has been proven that when a brand’s SOV exceeds its SOM, the brand is more likely to gain share in the following year. Decreasing spend might cause your SOV to slip and leave your brand vulnerable. On the other hand, if you increase your marketing investment at a time when competitors are reducing theirs, you should substantially increase the saliency of your brand. This could help you establish a long-lasting advantage. A Millward Brown analysis of 354 brands, summarized in the chart below, highlights the value of maintaining advertising investment. Brands were ranked according to their spend in relation to their market share. Then, according to this rank order, they were combined to form 20 groups (the first group consisting of the brands with the highest difference between SOV and SOM, the second group, the next-highest difference). This measure is represented on the horizontal axis of the chart below. Each group of brands is positioned on the vertical axis according to the percent of brands in each group that lost market share in the subsequent year. The declining trend line clearly shows that relative under-investment is linked with a greater risk of market-share decline. Increasing ad spend at a time when other brands are cutting theirs may seem unnecessary or even wasteful. But at such a time—when demand for media time and space is decreasing— media costs are likely to go down, and you may be in a strong position to strike a good deal. In the UK, Audi, with a new campaign, increased its media spend by 10 percent from 2008 to 2009; as a result, its order book was up 79 percent. Also in the UK, Heinz increased its weight of spend in 2009 to address the threat posed by store (shop’s own) brands; as a consequence, Heinz became the fastest growing major CPG company in the UK. KNOWLEDGE POINT MARKETINGINUNCERTAINTIMES FIGURE 3: Region B suffers in Year 2 and Year 3 Market share Region A Region B Year 1 % 1 0 -1 -2 -3 Year 2 Year 3 FIGURE 4: Advertising investment reduces risk 100 50 0 %LOSINGSHARE MEDIA PRESSURE (SHARE OF VOICE-SHARE OF MARKET) -30% 0% 30%
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    3. Ensure yourcopy is working as hard as possible While ideally you should aim to at least maintain your level of spend, you may be able to compensate for reduced spend with stronger copy. That is, with more impactful creative, you may be able to maintain or even increase your level of ad awareness, even with a reduced budget. The chart below summarizes the brand outcomes for various combinations of share of awareness and share of voice. When both of these measures declined (lower-left quadrant), brands tended to lose share. When they both increased (upper-right quadrant), brands tended to gain share. However, when share of awareness increased and share of voice declined (the lower-right quadrant), more brands gained share than lost it. Thus strong creative can provide powerful leverage for your spend. So then the question becomes – how do you increase ad awareness with lower spend? The answer is “creativity.” Great advertising is memorable. By 2009, Barclaycard’s “Waterslide” campaign was recalled by 46 percent of people, and ranked among the top 10 publicly voted “Ads of the Decade.” Analysis of our Link copytesting database shows that overall average scores did not change during the recession. Despite tightened belts, people continued to find advertising to be relevant or irrelevant, enjoyable or not enjoyable, involving or not involving, in the same proportions as before. The rules of effective communication do not change during a recession; great advertising is still great advertising, even in uncertain times. 4. Be creative with media Careful and innovative use of media channels can pay dividends, particularly with the recent increases in the number of media channels. While the Barclaycard “Waterslide” campaign aired on TV, it also aired in cinemas, and was supported in print, online, and with PR. Additionally there was an iPhone game, and the ad went viral on YouTube, with over 7 million hits. If you use a particular vehicle to make contact with customers, use that vehicle to deliver special offers, relevant news, and information. During Brazil’s 2002 recession, Unilever launched a customer magazine, Diva, to communicate with key customers. The result of extensive research, Diva contained articles on money-making ideas as well as Unilever brands. It also incentivized readers to buy Unilever brands by offering to pass some of the profits on to charity. 5. Don’t get defensive; use promotion sparingly The use of price promotions to help generate consumer spending, while common, can damage brands. One brand that had reduced media expenditure reported increasing share in line with promotions. Analysis showed that, in fact, the share increases were entirely due to the price promotion. The brand’s underlying base sales for the brand were in decline, and this decline was matched by tracking study measures. In product categories where the brand is less important (such as motor fuel, mineral water and grocery stores), price promotions are more likely to be effective, but even so, these are likely to erode brand equity. In the UK, as a result of a price war in an over-the-counter (OTC) brand category, the total volume sold on promotion increased by 15 percent in one year. The result was that value was driven out of the market—the total value of the category fell by 14 percent. At the same time, loyalty to specific brands declined; while 81 percent of buyers were “loyal” to a brand before the price war, just over half (55 percent) remained so afterward. Premium brands may feel threatened when consumers are keeping a tight grip on their wallets, but being premium in itself isn’t necessarily a problem. When the premium car brand Audi reoriented its campaign around the rational message of fuel efficiency, its brand desirability increased. With positive and proactive management, brands—even premium brands—can ensure their long term success even during uncertain times. SomeoftheexamplesandcasestudiesusedinthisarticlearefromtheIPAEffectivenessAwards KNOWLEDGE POINT MARKETINGINUNCERTAINTIMES FIGURE 5: Share of awareness Increase share of voice Deccrease share of voice Decrease share of awareness Increase share of awareness 19% more brands lose share than gain 20% more brands lose share than gain 31% more brands gain share than lose 12% more brands gain share than lose
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    he voiceover isa very common feature of TV advertising across the world. Of the ads in our Link database, 89 percent include voiceovers. Since they are so common and can be edited relatively easily, voiceovers are a worthy topic for scrutiny. What Voiceovers Do Well: Aid Communication of Information Voiceovers are often used to convey information, and they can do this effectively. On attributes related to news and information, ads with voiceovers score slightly but consistently higher than ads without voiceover. Not only are key messages communicated better, but ads with voiceovers score higher on credibility, conveying new information, relevance, and persuasion. The indexes on these measures for ads with and without voiceovers are compared in the table below. Changes made to a voiceover can lead to dramatic improvement in an ad’s performance. When a taste message came through only weakly for an ad for a new biscuit in China, adjusting the voiceover made a difference. In the original ad, the intended message registered with just 34 percent of respondents, well below the norm of 55 percent. When this new voiceover was added: “delicious but does not leave the mouth feeling dry,” communication of the taste message shot up to 53 percent. When the voiceover was modified further, to “really delicious,” communication reached 61 percent. The advertising contributed to a successful product launch; trial levels for the new cookie reached 80 percent within six months. A change in voiceover also made a huge difference for a personal care brand. Two versions of an ad were tested. Both had the same end frame, but one had a voiceover to support the written message of “developed with experts,” The takeout of the message was more than twice as high for the ad with voiceover, 44 percent versus 17 percent, as shown in the chart below. But Voiceovers Don’t Do It All Whilethefiguresinthetableaboveshowedthat,inrespecttoinformation, ads with voiceovers seem to outperform ads without voiceovers, we must remember that not all ads are intended primarily to communicate information or to be persuasive. The fact is, it is not always appropriate to use a voiceover. If your primary goal is to entertain people or remind them of your brand, a voiceover may actually interfere with the achievement of your objective. As shown in the table below, ads without a voiceover are more likely to be enjoyed and more likely to be seen as different to other advertising. However they are also less likely to be understood. So in deciding how and when to use a voiceover, keep your key objectives in mind. Voiceovers Should Work with the Story Voiceovers don’t always aid communication, particularly when they compete with an engaging or compelling story being shown in the ad. An Indian ad was designed to communicate that the brand contained ingredients that helped enhance immunity. The commercial showed a husband feigning sickness and his wife catching him in the lie. A voiceover explained the brand’s benefit, but most viewers seemed to be focused on the story being told on the screen, because they did not pick up either the voiceover or the message. The ad was modified so that the wife explained the benefits to her husband as part of the ad’s story, and the edited version performed substantially better on both impact and persuasion. FIGURE 2:When supported by the voiceover, the message was taken out at much higher levels FIGURE 1 HowShouldVoiceovers BeUsedinAds? Voiceovers are commonly used in ads across the world, and they seem to aid the communication of factual messages. However, voiceovers are less commonly associated with distinctive ads, and continuous voiceovers can result in lower engagement. Additionally, the manner in which a voiceover ties in with an ad’s visual content is critical: When voiceovers and visuals compete, the voiceover message can get lost. T KNOWLEDGE POINT Index Link Metric With voiceover Global base Without voiceover Global base Key Message Communication 101 13982 98 1565 Credible 101 35151 97 3195 New Information 101 50643 94 6270 Relevant 101 50444 95 6254 Persuasive 101 49640 96 6246 Prompted communication - “is developed with experts” 17% Without v/o support 44% With v/o support Base: 100 FIGURE 3 Index Link Metric Without voiceover Enjoyment 103 Different 104 Easy to Understand 97
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    Timing with Visuals Thevoiceover needs to complement the visual content of the ad. If it doesn’t, the message it intends to communicate is unlikely to register. This is the most common problem we have observed with voiceovers. One personal care brand tried in several ads to convey that it was 75 percent more efficient, but in none of the executions did the visual content support the message, and as a consequence, the message was lost. Ads tend to communicate far more successfully when they both show and tell—i.e., when the visuals dramatize what the voiceover is saying. One personal care ad in Indonesia was failing to communicate its intended message. The ad was revised to cut down the voiceover, and to tie the communication of the key “confidence” benefit with a relevant scene. Communication of the “confidence” message improved from 58 percent to 73 percent, and the revised ad was more persuasive. Television tends to be a far more expensive medium than radio—this is partly due to its wider reach, but it is also because it gets moving images, accompanied by sound, into people’s homes. You pay more for those images, which are often the most memorable parts of the ad, so it is crucial that the voiceover and visual content work well together. Less Can Be More Voiceovers should be used sparingly. Of the ads in our database that use voiceovers, 63 percent use them only during certain parts of the ad, or at the end only. Pauses and silences can help add emphasis, and allow time for the message to be absorbed. When we focus on ads that use continuous voiceovers, we see that they tend to be less involving (indexing at 99) than ads that have no voiceover or a voiceover at the end only (indexing at 103). It seems that continuous voiceovers can wash over viewers and lull them into inattention. We tend to see issues with continuous voiceovers more often with translatedads;whenanadistranslatedintoanotherlanguage,sometimes it takes more words to explain certain concepts (especially when the concept is one that has special resonance in the ad’s original market). A UK deodorant ad that had performed well in research was subsequently translated into Polish and tested again. In the Polish version, viewers did not play back the differentiating message; instead, they took out a generic deodorant message about efficacy. As a result, the ad did not convey its news, and failed to create a sense of differentiation. A comparison of the audio soundtracks of the two ads showed that the Polish version was sonically “busier.” It provided less aural down time to allow viewers to process the ad’s message. Another ad for a new deodorant scored poorly on all key metrics. Analysis showed the ad had a comprehension problem, with over a third of respondents finding it at least somewhat difficult to follow. Since the ad was already in a finished film state, the main changes made to the ad related only to the voiceover. The English voiceover in the original ad had a French accent. The revised version featured an English accent. But the voiceover was leaner only 69 words, versus 80 in the original. In addition there was a title card, setting up the story from the opening shot. Comprehension improved dramatically with only 9 percent having comprehension problems, and the ad’s persuasive strength moved from low to high. The subsequent launch was a success. The Voice in the Voiceover The voice in the voiceover can make a big difference. One ad, with local translations and voices, was tested in the UK, France and Italy. In the UK the ad received a high level of dislikes, which further investigation showed to be largely due to the voiceover. The voice was regarded as “silly,” and detracted from the key message. However, in France and Italy, there were almost no mentions of “silly voices.” In the UK, persuasion was greater among those who did not mention the silly voices compared to those who did mention them. Regional accents can often add to enjoyment, especially when they are used in a playful manner. However, if an accent is too strong, it can be hard to understand, and this can lead to lower comprehension and enjoyment for the ad. Also, since people tend to be proud of their accents, if the accent is over-exaggerated and clearly not genuine, it can annoy people from that region. KNOWLEDGE POINT HowShouldVoiceoversBeUsedinAds? FIGURE 3: A louder pattern for the Polish ad with no real breathing space POLISH Soundwave length from audio soundtrack UK
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    Millward Brown expertsare available to speak globally. Please contact: Global - Miquet Humphryes Miquet.Humphryes@millwardbrown.com North America - Jamie Jones jamie.jones@millwardbrown.com www.millwardbrown.com Produced by Miquet Humphryes, Delyth Hughes, Katie Pearce, Dede Fitch Millward Brown Global Communications Morgan Bullock, Michael Almon, Mike Agee, Lisa Parente Millward Brown Global Brand Marketing Dominic Twose Millward Brown Knowledge Management ©Millward Brown Perspectives