MediaCom_BLINK_Social_Media_BRIC_Summer2011 1

BLINK #3
Entertain. Das neue Fernsehen,
das alles möglich macht.
#3
MEDIA
TRENDS
CONSUMERS
PUBLISHED BY
THE SOCIAL MEDIA ISSUE
BRIC - EMERGING MARKETS
THE
SOCIAL
MEDIA
ISSUE
BRIC UPCLOSE
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Entdecken Sie die riesige Programmvielfalt, HD- und 3D-TV, rund 15.000 Filme und Serien jederzeit auf Abruf,
TV-Programm anhalten, zurückspulen, bis zu 310 Stunden Speicher für Ihre Sendungen und noch viel mehr Action.
Und das alles zu einem Preis mit echtem Happy End.
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SECRETS OF SOCIAL MEDIA
REVEALED 50 YEARS AGO
CREATE A STAGE FOR
YOUR CONSUMERS
INTERVIEW WITH LEGO
INTRO
WELCOME
LIEBE LESERIN, LIEBER LESER,
herzlich willkommen zur aktuellen Ausgabe von BLINK – dem weltweiten
Marketing-Magazin von MediaCom.
#3 August 2011
Circulation: 6.100
Die Welt ändert sich rasant – ökonomisch und medial: zum einen
attestieren wir ein erstaunliches Wachstum der emerging markets, allen
Derendorfer Allee 10
40476 Duesseldorf
Germany
voran der BRIC (Brasilien, Russland, Indien, China)-Staaten. Und wo neue
Wertschöpfungsketten und somit immense Kundennachfragen nach neuen
Produkten entstehen, kann und muss Werbung ihren Beitrag leisten. Denn
Tel.:
werbliche Kommunikation macht aus Produkten starke Marken und sichert
so Mehrwerte auf beiden Seiten der Sales-Kette.
Zum anderen nehmen wir auf der kommunikativen Seite immer stärker
Abschied vom reinen Broadcasting-Ansatz. Das Zeitalter des Dialogs ist
in vollem Gange. Die Konsumenten rezipieren längst nicht mehr nur passiv
die Informationen, sondern sie kommentieren, empfehlen, priorisieren
oder verändern gar die Markenbotschaften („social mash-ups“). Mit allen
Herausforderungen für Unternehmen und Kommunikationsdienstleister.
Grund genug, beide Themen in diesem Heft gemeinsam zu beleuchten.
Die weltweiten Auswirkungen und Chancen von Social Media.
+49 211 17162-0
Email: [email protected]
Web: www.mediacom.de
Editor-in-Chief:
Signe Wandler, MediaCom
[email protected]
Design & layout:
Propellant, www.propellant.dk
Art Director, Martin Dahlbeck
Cover:
Shan Lu
Printed By:
Vilhelm Jensen & Partnere
ISSN: 1903-5373
Der altbewährte Leitsatz “Think global, act local” wird gerade für
internationale Brands immer wichtiger, aber nicht immer leichter in Zeiten
von Social Media. So bieten soziale Netzwerke die Möglichkeit, lokale
Besonderheiten zu verstehen, somit noch stärker an den Bedürfnissen der
Konsumenten Marken und Kommunikation auszurichten und ggf. sogar
neu zu erfinden. Social Brand Activation ist eines der Schlagwörter. Aber
zugleich gibt das Unternehmen auch ein Stück Kontrolle aus der Hand.
Schon klopft anscheinend nach der Unique Selling Proposition die Unique
The opinions expressed in the
articles are those of the authors.
Minor textual contents may be
republished as long as the original
author and publication are cited.
Find BLINK in the “News & Insight”
section at www.mediacom.com
Story Proposition an die Tür…
Ist das alles wirklich so neu, müssen wir völlig umdenken und uns von
unseren Marketingerfahrungsschätzen verabschieden? David Aaker zitiert in
dieser Ausgabe eine 50 Jahre(!) alte Studie zu word-of-mouth-persuasion,
wenn man so will, dem Vorgänger von Social Media. Und möchte uns
beruhigen – die Motivationsmechanismen, über Marken zu reden, sind die
gleichen geblieben. Unsere Herausforderung liegt aber weiterhin darin, den
Konsumenten auch entsprechend „stories to tell, reasons to talk“ zu liefern.
Liebe Leserin, lieber Leser, ich hoffe, dass BLINK Ihnen auch ‚reasons to talk‘
an die Hand gibt und wünsche Ihnen eine spannende Lektüre. Und trotz
Paul Remitz
CEO MediaCom Germany
2
MEDIACOM | BLINK #3
PHOTOGRAPHY JACK W. NIP
aller angesprochenen Veränderungen in der Welt bleibt eines sicher – unser
Versprechen an Sie: „people first, better results“.
08
#3
CONTENT
02
THE BUILDING BLOCKS
FOR SOCIAL MEDIA
Welcome
Interview with Lars Silberbauer
How LEGO will evolve with the
use of social media tools.
06 M:files
08 The Building Blocks for Social Media
12
Ancient Lessons to Win Over the Chinese Online Generation
16
Cases
18
Social Media Infographics
20
Russia: The Dreamland of Social Brands
24
Secrets of Social Media Revealed 50 Years Ago
26
The Call of Social Media: Interview with Deutsche Telekom
28
Twitter
30 A Global Social Media Snapshot
34
BRIC Infographics
36
New Consumers, New Markets
44 The House That Took Over Russian TV
46 M:files
24
SECRETS OF SOCIAL MEDIA
REVEALED 50 YEARS AGO
By David Aaker
Identification of four motivations for
a person to communicate about brands.
36
NEW CONSUMERS,
NEW MARKETS
30
By Andrew Curry
A GLOBAL SOCIAL
MEDIA SNAPSHOT
By Tom Smith
Social media is impacting the way we globally
consume media and communication.
4
MEDIACOM | BLINK #3
BLINK #3 | MEDIACOM
5
CONTENT
M:FILES
GOOGLE GOES WHOLEHEARTED INTO SOCIAL
FOLLOW THE LEADER
Google’s new social network, Google+, has finally made its debut. It’s the company’s most
ambitious social project to date, and in their minds, Google+ is more than a social product, or
even a social strategy, it’s an extension of Google itself. Hence, Google+. Google+ comes with
It was Barack Obama who started the rush to Facebook and
Twitter. By successfully using social media to reach out to
younger voters, he proved there was a whole new way
of campaigning.
a lot of features, Circles being the prominent one.
It’s through Circles that users select and organize contacts into groups for optimal sharing in
a quite simple process that is as pleasant as possible. You simply select people from a list of
His rivals learned quickly and during the 2010 US elections, a
Pew Internet Study found that 22% of all online Americans used
social media for politics.
recommended contacts (populated from your Gmail and/or Google Contacts) and drag them
into Circles you designate. The interface to do this with is intuitive and simpler than dividing
your friends into groups on Facebook.
Social media is now a political tool around the world, with it’s
role in the Arab Spring is well documented. It seems that no
#1
political leader can function without a Facbook fan base.
THE POPE HAS SENT HIS FIRST TWEET
Barack Obama: 2012: 22.0m
Pope Bendict XVI has overseen the launch of the Vatican’s YouTube channel as well as
Sarah Palin: 3.2m
David Cameron: 134,529
Angela Merkel: 95,325
apps for mobile and Facebook and is now tweeting. Apparently from an iPad. The first
Nicolas Sarkozy: 443,693
U.S. PRESIDENT BARACK OBAMA
2012: 22.0M
tweet was sent on June 29th 2011 and launched The Vatican Today information portal.
DEAR FRIENDS, I JUST LAUNCHED HTTP://T.CO/FVHPS9Y
PRAISED BE OUR LORD JESUS CHRIST! WITH MY PRAYERS
AND BLESSINGS, BENEDICTUS XVI
POWER OF VISIBILITY
On Facebook it is a very special algorithm that determines whether you will be
seen or not in your friends newsfeed. Facebook has now published the Edgerank
ue
we Is the WEIGHT for type of edge: Each type of interaction is weighted differently.
FACEBOOK STRENGTHENS
RELATIONSHIP WITH MICROSOFT
It is assumed that video/pictures has the highest weight, followed by links and
status updates.
∑
6
MEDIACOM | BLINK #3
#2
PHOTOGRAPHY MEENA KADRI
Facebook has now built in the Microsoft-owned Skype service into the
platform. And you can now talk and see your friends while on Facebook.
Facebook and Microsoft has already joined forces in search and more
collaborations are on its way.
Is the AFFINITY SCORE: creater vs. viewer history. That is: The more history you
share the higher the affinity score.
uewede
E
EDGERANK
de
Is the TIME DECAY: no one cares about yesterday’s news, so older content has
lower weight.
What does Edgerank mean for your Facebook site?
The most important variable in the algorithm is the affinity score, so the more
interaction you can create with your fans the higher the rank and virality. Think about
the type of content you have on your Facebook site. Coca Cola has more than 13.000
pictures of Coca Cola bottles on their Facebook page. And make sure to update the
content daily, keeping in mind not to wear out your fans.
BLINK #3
#2 | MEDIACOM
7
INTERVIEW
THE BUILDING BLOCKS FOR SOCIAL MEDIA
strategizing. Your strategizing should happen while
the entire dialogue going on about the LEGO brand. But
you are engaging with the consumers.
we do listen carefully of any signs of crisis and we have
a comprehensive crisis management system set up.
Each country should be individually thought through.
Technologies, platforms and consumers are very
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social media adding to the brand in terms of under-
Italy we have 200,000 fans on Facebook and 80,000 of
standing behavior and attitudes?
them are located in Rome. This gives us tremendous
opportunities to do highly targeted messages and
events. On the other hand, we are not very strong on
is a way to get to know what consumers are doing
YOUTUBE OR FLICKR CLEARLY SHOWS. THE COMPANY’S FIRST SOCIAL
social media in Spain for some reason.
with our products and our brand. LEGO is a very
MEDIA STRATEGIST, LARS SILBERBAUER, EXPLAINS HOW THE COMPANY
WILL EVOLVE ITS USE OF SOCIAL MEDIA TOOLS EVEN FURTHER.
The building blocks that we all grew up with have
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themselves grown up. LEGO has become noted as a
smart user of social media. Crowd-sourcing ideas,
IVAN FERNANDES (IF): LEGO is a global company
allowing enthusiasts to design their own kits with
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Design by Me are all in a day’s work for this iconic
think are the main challenges for a global brand
Danish brand.
in social media?
creative brand. You have a simple LEGO brick that
This creates a challenge in creating the optimal
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strategy. Should we use the Italian country-based
have a massive need to show the world what they
model? Or should we instead target Spanish-speaking
have created. Social media is the perfect platform to
people in general? It is important not to use the
display and interact with your peers. Social media
same strategy across all markets. Even very mature
is continuously broadening the LEGO brand and we
markets like Germany, the UK and the US vary. It is
learn a lot from listening to the conversations.
“ON SOCIAL MEDIA, YOU SHOULD THINK OF
BRANDS AS THE CREATORS OF A STAGE”.
Despite this success, the 9,000-strong company
LARS SILBERBAUER (LS): I think that all global
clearly feels it can do more. Earlier this year LEGO
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raided the Danish Broadcasting Corporation, DR – the
sence while creating local social media engagement.
the local culture that will determine the best way to
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country’s public service broadcaster – to recruit Lars
You need to be as close to the consumers as possible
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to create engagement and build relations with the
on your target audience and the product you are
new products, but we make sure to do it as a service
In his new role, he sees himself driving the LEGO
users, but at the same time your engagement and
marketing. On top of that, the global nature of social
and not as an invasive message.
brand’s corporate social media strategy and ensuring
your brand must be consistent on a global level.
media makes it challenging to localize individual
that it is connected with the overall strategy of the
world’s fourth largest manufacturer of toy materials.
markets and consumers.
IF: So where do you start in solving this dilemma?
IF: How does LEGO view social commerce? And how
is LEGO using social commerce to interact with
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IF: An important feature of social media is listening
mentations or do you do it the other way around?
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topics, the volume of mentions and so on? How do
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media, you should think of brands as the creators
LS: I actually think we do it in a third way. To get
you address listening?
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of a stage from where the consumer can shine and
social media right you need to be dynamic and
look good to their network and friends. It is far more
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important to create an environment than to simply
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thousands of engaged fans post pictures, comment and
yet. Social commerce is an important development
state the brand is fantastic,” he says.
listening and adapting to the local markets. The old
interact with us every single day. In my opinion, social
right now if you create the models and get the right
way of doing strategy simply does not work anymore.
media is very suitable for listening to the dialogue
products out in places such as Facebook. I believe the
In a conversation with Ivan Fernandes, MediaCom’s
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that is going on naturally among consumers. LEGO’s
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Global Director for Social Media Technology,
with a good social media strategy. In my opinion, you
overwhelming amount of consumer engagement,
be hugely successful.
Silberbauer gives his perspective on the challenges
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however, also means that we of course cannot listen to
Silberbauer believes that brands need to consider
themselves as social media enablers. “On social
8
LS: There is no single answer to that. Social media
LEGO IS VERY SUCCESSFUL IN SOCIAL MEDIA WHICH ANY SEARCH ON
MEDIACOM | BLINK #3
your consumers?
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BLINK #3 | MEDIACOM
9
INTERVIEW
FOR SOC
SOCIAL
IAL MEDIA
MEDIA
THE BUILDING BLOCKSS FOR
IVAN FERNANDES, GLOBAL
LARS SILBERBAUER,
DIRECTOR FOR SOCIAL MEDIA
GLOBAL SOCIAL MEDIA
TECHNOLOGY AT MEDIACOM.
STRATEGIST AT LEGO.
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company. And the third tier is the engagement
the consumers and getting a closer relationship and
strategy. These three tiers make for a continuous
then driving sales. I think engagement will always
process that enables our social media handling.
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:KDW,WKLQNPRVWEUDQGVQHHGWRXQGHUVWDQGLVWKDW
IF: From a practical perspective, how do you manage
on social media you shouldn’t focus so much on your
social media content? Do you handle it yourself or is
brand and think that the brand should be the centre
it outsourced?
of attention. Instead you should focus on helping the
LS: Our goal is to create a genuine and authentic
your brand be a part of that process. It’s all about the
user to build his or her own personal brand and let
relationship between the user and the LEGO brand
user and social media, I think, has answered a basic
IF::KDWRWKHUGHYHORSPHQWVDUH\RXNHHSLQJDQ
If a company wants to enter social media, I think
and that is why we do not outsource our conversa-
human need: A need to be in the centre of your own
eye on?
crisis management is another important subject to
tions with our consumers to agencies.
life and a need to create a world of information and
communication around yourself.
be aware of – at least it has been a focus for us.
LS: I see two important trends that are impacting
You don’t want to have a stranger to call of one of
social media: The massive development of mobile
IF: Has the need to be always-on changed the way
your friends and that is why it is always a LEGO
On social media, you should think of brands as crea-
and social gaming. Social gaming is an interesting
LEGO deals with social media?
employee that is doing the conversation on social
tors of a stage from where the consumer can shine
media. You cannot outsource it to others to build
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challenge because we have a clear and ethical policy
at LEGO that states that we do not want to interact
LS: LEGO is a global brand, so there are always
a emotional relationship, that must be done by
more important than saying that telling the consumer
with kids less than 13 years of age old on social
consumers in a daytime zone and we are used to
employees inside the company.
that the brand is fantastic.
media. However, social gaming is only going one
accommodating to a 24/7 setup. But, of course, this
way and that way is growth.
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IF: How do you keep the strategy fresh and relevant
It is necessary for a brand to be humble and acknow-
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to your target audience?
ledge that we are in a social media space where we
have to earn our rights to be. In my opinion, brands
IF: Yes, social gaming is one of the biggest activities
process of enabling the company to do social media
on Facebook and I think more and more brands will
in the right way and develop the social media
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leverage this opportunity to engage consumers.
organization. Again for us, this is about trying a
engage the consumers and as we enable the company.
marketing when engaging on social media, as social
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media should never be seen as yet another one-way
to enter the world of social media?
strategy. It is an on-going process and the challenge
media strategy. The social media architecture is
channel for pushing out marketing messages and
is to do it fast enough to keep of with the users.
the basic layer in our social media strategy. The
traditional campaigns. It’s not just a new platform;
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it’s a mind shift.
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not let our consumers down once we have engaged
IF: In every aspect of marketing, measure is grow-
with them on social media. If you decide to engage
ing in importance. How do you measure success on
with consumers on social media you cannot stop
social media?
“TO GET SOCIAL MEDIA RIGHT YOU NEED
TO BE DYNAMIC AND FLEXIBLE AND THIS
IS OUR STRATEGY”.
10
the conversation just because some marketing
LS: It depends on what social media is part of. If it
campaign has ended. You need to show commit-
is part of a crisis management strategy then you
ment. So for us, what is most important is that we
need to measure sentiment and the development
are committed every time we create something on
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social media. You should never commit to more on
on social media. The measurement also depends on
social media than you can actually live up to. Make
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sure you don’t promise something you can’t deliver.
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MEDIACOM | BLINK #3
BLINK #3 | MEDIACOM
11
CONTENT
CON
ANCIEN
IENTANCIENT
LESSONS
ONSLESSONS TO WIN
ANCIENT
CHINA:
ANCIENT LESSONS TO
WIN OVER THE CHINESE
ONLINE GENERATION
CONFUCIUS LIVED LONG BEFORE SOCIAL MEDIA AND OTHER EMERGING MARKETING
PLATFORMS BUT HIS TEACHINGS CAN HELP WESTERN BRANDS TO UNDERSTAND
AND CONNECT WITH MILLIONS OF CHINESE NETIZENS.
MAJOR GLOBAL SOCIAL MEDIA SITES MIGHT BE BLOCKED IN THE COUNTRY BUT
THEIR CHINESE EQUIVALENTS AND THEIR 265 MILLION USERS ARE WELCOMING
WESTERN BRANDS WITH OPEN ARMS. THERE’S ONLY ONE CONDITION: UNDERSTAND
THE PHILOSOPHY BEHIND THE CHINESE WAY OF LIFE AND TAILOR YOUR
COMMUNICATIONS ACCORDINGLY.
TEXT BY KINGA PAPP, MEDIACOM BEYOND ADVERTISING (MBA) UK
SOCIAL MEDIA
“WHEN YOU HAVE FAULTS, DO NOT
FEAR TO ABANDON THEM.”
Chinese social networking sites might
social media services in China. Sina
have started out as Facebook, Twitter and
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YouTube copy-cats but they realised early
has 140 million users and more than 90%
on that Chinese Internet consumption
of them say that they trust brands more
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if they are present on the microblogging
were not afraid to alter their approach. So
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what are Chinese netizens like?
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98 million Chinese still consider them a
87% of social media users in China befriend
primary information source for product
or follow brands on social platforms, while
reviews and recommendations so these
only 12% of Americans are likely to do the
platforms shouldn’t be ignored.
MULTINATIONAL BRAND
THAT GOT IT RIGHT - BMW
BMW launched its brand page on
Kaixin001 to raise awareness and
engage with affluent young professionals. By integrating its cars into
‘Car Parking’, one of the most popular
games on the platform, the brand
managed to reach a significant portion of the 45 million players who had
installed the game on their profile.
same. In addition, 77% of Chinese netizens
believe that social media presence makes
And what about Facebook?, you could
brands more attractive.
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that aggregates all demographics
They watch longer, professionally
because the Chinese prefer to join social
produced video content rather than short,
networking sites that talk to ‘their kind of
user-generated content on Youku and
people’. QZone with 481 million registered
Tudou (the local versions of YouTube) and
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their favourite way to engage with brands
networking site and attracts teens from
is to watch commercials and branded
second- and third-tier cities. RenRen,
content on these platforms, indicating
the platform most similar to Facebook,
that strong video presence is essential.
attracts university students, while
Forums, Bulletin Board Systems (BBS)
workers living in tier one and two cities.
In order to enhance the luxury feel
of the brand, players had to make
and pay lots of virtual money to own
a BMW in the game. Still, more than
half of those who played the game,
felt proud and accomplished when
they could finally afford to buy a
virtual BMW. Exactly the emotion
that the car manufacturer was
aiming for.
.DL[LQLVGHVLJQHGIRUZKLWHFROODU
and microblogging are the most popular
12
MEDIACOM | BLINK #3
BLINK #3 | MEDIACOM
13
CONTENT
CHINA: ANCIENT LESSONS TO WIN
ECOMMERCE AND GROUP-BUYING
“MEN’S NATURES ARE ALIKE, IT IS THEIR
HABITS THAT CARRY THEM FAR APART.”
The Chinese love a good bargain due
platform is 360buy.com but Taobao has
to the fact that traditionally they are
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value-oriented, savvy shoppers. But unlike
online storefronts for multinational brands
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at its Amazon-like ‘Mall’ platform.
accounts for 20% of all online transactions,
as the Chinese online generation feels
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PRUHFRPIRUWDEOHZLWKH[FKDQJLQJJRRGV
enon that the Chinese social citizens are
between themselves and paying in cash for
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the products.
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Taobao’s Juhuasuan has almost four times
Taobao, the eBay-like C2C platform is the
more visitors per month than the Chinese
ultimate online shopping destination at
version of Groupon. On the other hand,
the moment but it is likely to change.
the fact that the Groupon-Tescent venture
EMarketer estimates that purchases from
has integrated its deals with QQ, the most
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popular instant messaging service – with
than half of all online transactions by
636 million registered accounts - might
2015 due to changing shopping habits and
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the availability of more secure payment
competitive edge.
MULTINATIONAL BRAND
THAT GOT IT RIGHT –
MERCEDES-BENZ
Mercedes-Benz offered 200 ‘smart’
cars for sale on Taobao’s Juhuasuan
platform. The mission was to sell the
cars in three weeks in a group-buying
scheme by offering a 23% discount.
The results: the cars were sold out
in three-and-a-half-hours and the
campaign attracted over 300,000
visitors in less than 24 hours.
CREDITS;
Title: Big Stain
Client: P&G Ariel
Client Contact Name: Alan Zong
Agency: Saatchi&Saatchi
Great Wall Advertising Co.Ltd.Guangzhou Branch
Creatives: Fan Ng, Wendy Chan, Jonathan Ip,
Andy Greenaway, Edmund Choe,
EXPERIENTIAL MARKETING
options. Currently the most successful B2C
Henry Chu (Pill & Pillow HK)
Director: Eddy Chan, Lee Wai Kai
Music title & Artist: Drum
“I HEAR AND I FORGET. I SEE AND I
REMEMBER. I DO AND I UNDERSTAND.”
MOBILE MARKETING
“WHERESOEVER YOU GO,
GO WITH ALL YOUR HEART”
MEDIACOM | BLINK #3
-DFN0RUWRQ:RUOGZLGHLQ&KLQHVH
of the surveyed also said that they took
foreign companies compete for the
FRQVXPHUVGRQƂWSUHIHUH[SHULHQWLDO
action after participating in a live event.
attention of China’s 1.3 billion consumers,
marketing to other media channels but
And last but not least, 85% of them said
EUDQGVQHHGWREHLQQRYDWLYHDQGXQLTXHLQ
WKH\GRWKLQNWKDWLWƂVPRUHLQnjXHQWLDO
that they told others about interesting
order to stand out. And it’s not just about
and that it’s the “most engaging” form of
EUDQGH[SHULHQFHVSURYLQJWKDWKLJK
There’s one thing that is very close to the
without their mobile devices”, interactive
WKHSURGXFWWKH\RNJHUEXWWKHH[SHULHQFH
brand interaction. 80% of the respondents
interactivity turns consumers into brand
Chinese heart: mobile phones. Since 70% of
and on-the-go marketing activities are
that comes with it.
said that such activities made them better
advocates. Even in China.
mobile phone users say they “couldn’t live
most suitable to reach this target audience.
According to a research carried out by
XQGHUVWDQGEUDQGEHQHNjWVZKLOHKDOI
Puma used an integrated mobile
marketing campaign around the
Formula 1 Race to position itself as
China’s No.1 motorsport lifestyle brand,
recruit new Puma fans and increase
brand awareness.
submitted their scores via text
message or invited friends to play,
received extra points that could be
exchanged for Ferrari gifts. In order
to also drive foot traffic, as soon as
someone downloaded the game, they
also received a coupon to redeem
mobile phone decorations at one of
the Puma stores.
They launched a mobile car racing
advert-game, Puma ‘F Wan’ which
could be downloaded from a mobile
website. To generate buzz and encourage social sharing, players who
As far as results are concerned,
the campaign drove 150.000 game
downloads, 185.000 qualified database
contacts, 70.000 coupons and 85
million page impressions.
MULTINATIONAL BRAND
THAT GOT IT RIGHT – PUMA
14
Given that thousands of domestic and
MULTINATIONAL BRAND
THAT GOT IT RIGHT - ARIEL
In order to increase brand awareness
and sales, Ariel created the “world’s
biggest T-shirt” and put it up as an
outdoor installation in key Chinese
cities. Then the brand turned stain creation and removal into a social gaming
experience by dressing up Wii consoles
to look like ketchup, mustard, soy sauce
bottles and of course Ariel. Consumers
with the ‘sauce consoles’ could have fun
causing stains, while the ‘Ariel fighters’
could have the satisfaction of getting
rid of them.
So how did Chinese consumers react to
this cool brand experience? They started
:LQQLQJWKHZDOOHWRIWRGD\ƂV&KLQHVH
and modernity that shapes the Chinese
consumer is not easy but it’s a no-brainer
mind will certainly succeed. If not today,
that it’s worth it. And brands that dare
tomorrow. Because as Confucius said, “it
to ditch their global brand handbook
does not matter how slowly you go as long
WRHPEUDFHWKHKHFWLFPL[RIWUDGLWLRQ
as you do not stop”.
buying the product. According to official
campaign statistics, sales rose by 113%
in the first month, brand awareness
increased by 300% and the stunt generated over 8 million views online.
SOURCES:
OgilvyOne Worldwide, 2010, TNS Research International, 2010, Fleishman-Hillard and Harris Interactive,
2010, Resonance China, 2010
Source: China Internet Watch, Source: U Talk Marketing, Source: Ads of The World
BLINK #3 | MEDIACOM
15
CASES
I AM NIKON + WINNERS
CASES
LOHAS
LOHAS
LIFESTYLES OF HEALTH
AND SUSTAINABILITY
NIKON CREATED A TWIN-TRACK STRATEGY DESIGNED
TO HIT ITS TWO KEY TARGET AUDIENCES: CASUAL
SNAPPERS AND SERIOUS AMATEURS.
LAUNCH CAMPAIGN FOR THE HEALTHY JUICE BRAND,
LOHAS IN CHINA.
Using Facebook for compact users and Flickr for the
semi-pro DSLR users we created platforms designed
thousands of new fans.
to celebrate consumers’ photographs, taken with
We attracted more than 560,000 unique visitors on
Facebook and users have uploaded nearly 40,000
Photos and have “liked” entries 260.000 times. The
To build awareness of a new organic, non-additive
juice brand from carefully selected origins,
MediaCom China decided to create a Lohas-owned
Lohas Planting Competition’. Prizes are awarded,
both virtually and in reality, to those who ‘earn’
most in the competition.
Facebook fan page continues to grow and now has
81,000 fans.
easy-to-access platform, which would enable
consumers to frequently get involved with nature
and healthy elements while getting on with their
Additionally, there is an option for users to grow
their plant more quickly by downloading various
and by big name pros on Flickr, encouraging our
targets to tell the world Who They Were With Nikon.
On Flickr our group is already in the top 2% in terms
of group size, with more than 9,000 members.
busy city lives.
THE RESULTS
Going social has connected Nikon with hundreds of
This campaign contributed to a doubling of Nikon’s
compact share in its six biggest EU markets.
ANY camera. We encouraged consumers to share
their images with the world, creating a democratic
platform for a democratic art form.
The competition was judged by “likes” on Facebook
WINNERS
BACKGROUND:
Winners is a national Canadian retailer that offers branded
products at discounted pricing. The objective of the campaign was to generate a database of fans on Facebook for
on-going communications and engagement. The campaign
was supported with Facebook ads as well as other sites.
Facebook itself considered it to be one of the most successful
campaigns in garnering fans within a short period of time.
16
CASES
WINNERS
With the increasing usage of digital media at work
‘Lohas Themes’ for their virtual garden. Each of
the Lohas Themes depicts one of the beautiful
specially-selected origins of Lohas juices, such
and the growing popularity of social networking
among the target audience, we realized that, rather
than rely on regulars like TV or portal websites, our
as Sao Paulo of Brazil and Wusu of Xinjiang in
northwest China. This helps to deliver, and make
memorable, the benefits of the specially-selected
media focus should be on Kaixin001, the biggest
social networking site targeting white-collars
in China. We successfully negotiated a content
origins of Lohas.
cooperation with Kaixin001, allowing us to tap into,
and add value to, one of their hottest plug-ins called
‘Garden’ (similar to Facebook’s Happy Farm). We
may exchange them for virtual money or use them
to make their freshly squeezed Lohas juices. It
is at this point that participants experience the
also introduced a Planting Competition, designing
rewards carefully to incentivise participants to share
the results of their efforts with their friends.
‘non-additive’ Lohas bottling process in the form of
a lively flash.
This would not only facilitate the communication
between friends, responding to one of our target
audience’s needs, but, crucially, it would help to
disseminate the brand messages quickly. A competition element encouraged trial in the real world.
When virtual Lohas fruits become ripe, participants
Participants could also win the chance to get real
Lohas delivered to their real friends in the real world
– thus driving trial.
THE RESULTS
The numbers say it all:
In the plug-in, participants are encouraged to
purchase Lohas seeds to plant in their own virtual
Sales up by 30% after campaign
“The Winners Facebook Page was one of the most successful
Canadian Brand Page launches and was one of the first to
achieve 60.000 Fans within 4-weeks! Within 4 months, they
gardens. When the fruits become ripe, they may use
No. of participants: 9.7M
them to make their freshly squeezed juices, which
can be later redeemed for virtual money or given
No. of Lohas theme downloads: 5.3M
No. of people joining Lohas BBS: 541K
grew to 120.000 Fans and continues to be one of the leaders
in the Canadian retail category” - Facebook
away as gifts to their friends. Purchasing Lohas
seeds immediately enables participants to enter ‘the
No. of bottles of virtual Lohas Juice produced: 186.3M
No. of bottles of virtual Lohas Juice sent: 127.6M
MEDIACOM | BLINK #3
BLINK #3 | MEDIACOM
17
CONTENT
SOCIAL MEDIA INFOGRAPHICS
CANADA
11.72m
THE NETHERLANDS
RUSSIA
6.30m
26.06m
45%
56%
62%
42%
54%
UK
18%
43%
19.27m
26%
44%
40%
28%
46%
POLAND
JAPAN
12.03m
48%
13.66m
46%
16%
26%
16%
8%
GERMANY
USA
114.55m
18.81m
51%
47%
51%
38%
20%
32%
CHINA
155.29m
47%
53%
34%
ITALY
FRANCE
15.92m
12.66m
57%
38%
45%
49%
28%
36%
SOUTH KOREA
10.93m
MEXICO
35.08m
33%
50%
11%
12.80m
BRAZIL
64%
52%
33.49m
49%
63%
54%
37%
51%
34%
23%
INDIA
PHILIPPINES
14.43m
HONG KONG
SPAIN
46%
INDONESIA
33%
47%
36%
73%
39%
56%
10.10m
45%
60%
2.56m
18.93m
MALAYSIA
57%
11.50m
66%
54%
52%
63%
41%
SINGAPORE
1.96m
AUSTRALIA
48%
7.05m
57%
50%
32%
48%
27%
BEHAVIOUR TYPES:
ACTIVE SOCIAL NETWORKERS (MILLIONS)
MESSAGERS AND MAILERS
CONTENT SHARERS
JOINERS AND CREATORS OF GROUPS
18
MEDIACOM | BLINK #3
Find out more: www.globalwebindex.net
mail: [email protected]
BLINK #3 | MEDIACOM
19
CONTENT
RUSSIA: THE DREAMLAND OF SOCIAL BRANDS
1. FORGET FACEBOOK
Russians are the most engaged users of social media in
the world, spending an average of 9.8 hours on social
networks. This is almost double than the global standard (Comscore, 2010). However it’s not Facebook but
its local equivalents – Vkontakte.ru, Odnoklassniki.ru
and Mail.ru – that keep users excited. Vkontakte.ru or
‘VK’ as Russians call it, is the number one social network in the country and currently has over 98 million
3. STAY AWAY FROM
LOCATION-BASED MARKETING
Westerners may be eager to become the mayor of
their local coffee shop but not Russians. They take
great pride of where they eat, shop and hang out,
however there’s still a significant resistance about
sharing their whereabouts with the world. 70 years of
socialism certainly doesn’t disappear without a trace…
members according to the official counter of the page.
Case Study: Clearasil used Vkontakte to engage
Russian teens and encourage them to use the facecleansing product on a regular basis.
RUSSIA:
THE DREAMLAND
OF SOCIAL BRANDS
SOCIALISM IN RUSSIA IS BOOMING AGAIN BUT THIS TIME
AROUND THE COUNTRY OF VODKA AND MATRYOSHKA
IS MASTERING A NEW FORM OF THE IDEOLOGY: DIGITAL
SOCIALISM. AN OPPORTUNITY THAT SHOULDN’T BE MISSED
BY BRANDS WANTING TO TAP INTO THE MINDS, HEARTS
(AND WALLETS) OF 141.8 MILLION PEOPLE.
SO HOW DO YOU (OR YOUR CLIENTS) MAKE THE MOST
OF THE RUSSIAN DIGITAL CRAZE?
TEXT BY KINGA PAPP, MEDIACOM BEYOND ADVERTISING
(MBA) UK
2. FOCUS ON BLOGGER OUTREACH
Blogging is big in Russia. There are 7.4 million Russian
speaking blogs with a readership of approximately 23
million, according to the Russian Association of Electronic Communications. Livejournal, the most popular
blogging service has almost five million registered accounts. Since 60% of bloggers are urban women, outreach programmes offer an invaluable opportunity for
luxury brands targeting a female audience.
Case study: Yves Rocher generated online buzz for its
Serum Vegetal product line in Russia by inviting key
beauty bloggers to a lavish launch party. The brand
4. ONLY USE MOBILE IF YOU
MARKET A LUXURY PRODUCT
Although the number of smartphone and tablet users
is likely to reach 18 million by the end of 2011, it only
offers access to 10% of the population. On the other
hand, mobile might be ideal if you want to reach the
rich and trendy.
Case study: Volvo launched XC60 by directing Russian luxury car lovers to a mobile website, featuring
a 3D game “City Rally.” It offered users the chance to
test the Volvo XC60 and see it for themselves why it’s
called “the safest in Volvo’s history”.
offered bloggers make up and product training and
generous gift packs. Not surprisingly, they fuelled the
Internet with raving product reviews afterwards.
forum.awd.ru
5. OFFER EXCLUSIVITY
There’s only one thing Russians love more than luxury
and that’s exclusivity. And it’s no different, when it
comes to online communities. Forum.awd.ru for example is a social network of elite Russians who enjoy
traveling to exotic locations by themselves. Due to the
social status and high net worth of the members, car
manufacturers and banks are eager to offer exclusive
value-add services to the privileged group.
20
MEDIACOM | BLINK #3
BLINK #3 | MEDIACOM
21
Take a new look at Eurosport
All Sports. All Emotions.
22
MEDIACOM | BLINK #3
eurosport-emotions.com
BLINK #3 | MEDIACOM
23
CONTENT
SECRETS OF SOCIAL MEDIA
SECRETS OF SOCIAL
MEDIA REVEALED
50 YEARS AGO
Text by David Aaker
H[SHUWDOWKRXJKWKDWFDQKHOSSHRSOHWKDWKDYHDQ
Almost 50 years ago Ernest Dichter, the father of
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motivation research, did a large study of word of
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intense interest in a subject resulting in relevant
mouth persuasion that revealed secrets of how to
also are skeptical of the speaker’s motivation. They
use social media to build brands and businesses.
want the speaker to be interested in the listener and
The study was reported in a 1966 article in HBR
his or her well-being without a bias. Is the speaker’s
(Harvard Business Review).
LQWHQWLRQWRVHOODSURGXFWRUKHOSPH":KDWLVWKH
speaker’s relationship to me? An implication is that
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of its status and emphasize facts instead of opinion,
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represent the right culture and values, and have a
of the cases) is because of product-involvement. The
balanced perspective.
H[SHULHQFHLVVRQRYHODQGSOHDVXUDEOHWKDWLWPXVWEH
FOUR MOTIVATIONS
FOR COMMUNICATING
ABOUT BRANDS
33%
PRODUCT-INVOLVEMENT
shared. The second (about 24%) is self-involvement.
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Sharing knowledge or opinions is a way to gain
a dialogue because a listener will be more likely to
attention, show connoisseurship, feel like a pioneer,
accept judgments from someone with whom there is
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DQLQWHUDFWLRQJRLQJRQ:LWKDGLDORJXHLWLVPXFK
person’s own judgment, or assert superiority. The
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third (around 20%) is other-involvement. The speaker
subject matter, and the right motivation because
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there is a chance to build up a relationship and use
caring, and friendship. The fourth (around 20%) is
reassuring cues. In contrast, a one time, one way
message-involvement. The message is so humorous or
communication will have a harder time demonstrating
informative that it deserves sharing.
credibility and motivation.
Looking at the social media role in brand building,
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,VXVSHFWWKDWWKHVHVDPHIRXUPRWLYDWLRQVH[SODLQ
age a huge impact on purchase running to 80% for
why some brands have been successful in using
some products. The classic and even earlier work of
social media. It suggests that, in the absence of
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book 3HUVRQDO,QnjXHQFHhad already documented
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WKHLPSDFWRIVRFLDOLQnjXHQFHKDVDWZRVWHSnjRZ
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but this study brought the ideas to the level of
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purchase decisions.
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24%
LVLQQRYDWLYHDQGGLNJHUHQWLDWHGLQDZD\WKDWWUXO\
It is amazing that the nearly forgotten theory and
resonates with customers. It is unlikely to happen
practice of word-of-mouth communication and
SELF-INVOLVEMENT
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an established category or subcategory. So it
relevant today.
20%
OTHER-INVOLVEMENT
20%
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comes back to creating and leveraging innovation
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concerned with two conditions. One is that the
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that is convincing. A person does not need to be an
24
MEDIACOM | BLINK #3
'DYLG$DNHULVWKH9LFH&KDLUPDQRI3URSKHWDQG
7KLVZDVNjUVWSXEOLVKHGRQKEUFRP3ULQWHGZLWKSHUPLVVLRQ
BLINK #3 | MEDIACOM
25
INTERVIEW
DEUTSCHE TELEKOM
THE CALL OF
SOCIAL MEDIA
in a more direct way, but companies can
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H[SHFWVXFKPRGHOVWREHGHYHORSHGLQWKH
also learn more about what customers think
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of their products. If a company learns to use
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of great value.
JW: The Million Voices campaign was
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line network whilst giving consumer a
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DEUTSCHE TELEKOM HAS BEEN USING SOCIAL MEDIA BOTH TO BUILD ITS BRAND
AND IMPROVE CUSTOMER SERVICE. STEPHAN NAUMANN AND DANIEL BISCHOFF
TALK TO GERMANY’S BIGGEST TELECOM COMPANY TO FIND OUT WHY.
ANDREAS BOCK: :HFKRVHDPXOWL
highly emotional way.
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In general, social media and participatory
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target groups in the most appropriate
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establish a dialogue with our customers
way. Our Million Voices campaign and
claim “Life is for sharing” and create a dia-
and prospects to develop sustainable
our customer service via “Telekom hilft”
logue, not only between Deutsche Telekom
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and our customers, but also between
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customers. Successful campaigns therefore
to become loyal customers and
customer support via “Telekom hilft”
have the potential to turn customers into
brand advocates.
long-term brand ambassadors.
Social media has revolutionized media
One brand that does seem to be thriving
more traditional call centres. Consumers
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consumption and consumer behaviour. In
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Germany, 60% of people online already
Telekom, Germany’s leading telecom-
on Telekom_hilft-channels and get near
network via the Million Voices campaign.
use social media sites like studiVZ, Twitter
munications provider. It’s using social
real-time feedback from Deutsche Telekom’s
and Facebook.
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social media team.
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benefit customers.
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This transformation has challenged
our Social Media ROI.
this information in the right way, it can be
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translate into 34 “faces to the customer”,
VK: The assessment of social media
because the team members work across
conventional communication models.
Two new initiatives in particular highlight
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VOLKER KRÖN: :HKDYHHVWDEOLVKHG
campaigns takes into account two main
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Marketers know they need to be where
the company’s attempts to get to grips
Marketing and Social Media Telekom
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factors. On the one hand, we have a lot of
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consumers are but many struggle to
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Deutschland, Volker Krön, Senior Manager
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Online and Social Media Marketing
and co-ordinate our communication. The
video views or uploads, comments, likes,
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A recent campaign entitled “Telekom
Telekom Deutschland, and the leader of the
idea is to ensure that all the company’s
tweets and blog entries that can be meas-
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A recent survey – conducted by Social
Million Voices”, featuring German singer
Telekom_hilft strategy, Andreas Bock, Head
messages work together.
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0HGLD([DPLQHUſIRXQGWKDWRI
Thomas D, invited everyone to join the
of Social Media Management Sales and
marketers in Germany cited Facebook as
biggest online choir in history. Launched
Service Telekom Deutschland, to ask them
their number one social media tool with
using TV advertising as well as radio and
about their approach to social media.
84% saying Twitter was of high impor-
social media it encouraged consumers
tance for their company.
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mances used as part of the campaign.
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that’s had to get to grips with a revolution.
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The range of company functions that can
in this area is new customer service
communication has become more direct.
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coverage and a degree of interactivity.
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channel @Telekom_hilft. This enables the
Both parties – companies and custom-
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On the other hand we also monitor the
knowledge of our products and services
marketing to sales to customer support
company to interact via Twitter, Facebook
ers – gain a lot of advantages. Not only can
and beyond.
as well as via www.telekom-hilft.de and
customers and companies talk to each other
JHQHUDWHUHDOEHQHNjWV
But it’s not just the marketing department
JÜRGEN WERMUTH
ANDREAS BOCK
VOLKER KRÖN
“MARKETERS KNOW THEY NEED TO BE WHERE
CONSUMERS ARE BUT MANY STRUGGLE TO
GENERATE REAL BENEFITS”.
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JW: Deutsche Telekom has established
factor. In combination these two measures
kind of conversation with customers.
a company-wide Enterprise 2.0 project,
give us a very good picture how successful
Customer service colleagues must be able
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campaigns are.
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FRQWH[WRI7ZLWWHUDQG)DFHERRN
ment the company’s social media strategy,
Q: :KDWPHWULFLVXVHGDVDEHQFKPDUNIRU
develop social media guidelines and share
VRFLDOPHGLDFDPSDLJQV"'R\RXSXWDYDOXH
EHVWSUDFWLFHHNJRUWV,QFOXGHGRQWKH
RQHDFKIDQ"
working group are representatives from
26
MEDIACOM | BLINK #3
all departments that are engaged in 2.0
JW: There is no comprehensive and widely
activities such as marketing, communica-
accepted model for benchmarking owned
tions, HR, customer service and IT.
DQGHDUQHGPHGLDLQWKHVRFLDOZHE:H
BLINK #3 | MEDIACOM
27
CONTENT
TWITTER
28
MEDIACOM | BLINK #3
BLINK #3 | MEDIACOM
29
CONTENT
A GLOBAL SOCIAL MEDIA SNAPSHOT
A GLOBAL
SOCIAL MEDIA
SNAPSHOT
SOCIAL MEDIA IS FUNDAMENTALLY IMPACTING THE WAY
WE GLOBALLY CONSUME MEDIA AND COMMUNICATION.
OVER 50% OF THE POPULATION WORLDWIDE IS ACTIVE
IN SOCIAL MEDIA.
TEXT BY TOM SMITH
ILLUSTRATIONS BY ESTHER AARTS / SHOPAROUND
THE INTERNET IS ALL SOCIAL
Sometimes the hype is right. Consumer internet adoption across the world is now
LQFUHDVLQJO\GHNjQHGE\VRFLDOPHGLD6LQFHODXQFKLQJLQWKH*OREDO:HE,QGH[DQG
the 4 waves of research that have been delivered to date, have demonstrated substantial
growth in social media adoption. The fastest growing type of website between July 2009
and February 2011, is unsurprisingly Social Networks, with the percentage of consumers
visiting on a monthly basis rising 29% to 49%. This is mirrored with video sharing sites
(increase of 18), photo sharing (15%) and consumer review sites (7%) In contrast static
sites such as news, portals and even search have declined in consumer visits globally. This
VKRZVDGUDPDWLFVKLIWIURPWKHHDUO\PRGHORIWKHLQWHUQHWGHNjQHGE\VLORHG85/VVWDWLF
FRQWHQWDQGDXWRPDWHGDOJRULWKPVWRDPRGHOWRGD\WKDWLVGHNjQHGE\VRFLDOWHFKQRORJLHV
and the internet users that use them.
7KHUHVXOWLVDVWXQQLQJOHYHORIFRQVXPHULQYROYHPHQWLQVRFLDOPHGLD:KHQORRNLQJDWD
combination of active participation in, blogging, Forums / BBS, microblogging, uploading
video and social networks via a PC device we can see that in all markets at least 50%
of internet users take part in one activity on a monthly basis. In some markets such as
Brazil, China and Russia this climbs to over 80%. Even more telling is that this percentage
has grown slightly in all markets over the last 18 months, showing that social is cemented
and here to stay.
REAL-TIME TAKING OVER FROM
There is a major shift taking place in terms of the social platforms that internet users
actively contribute too. As of February 2011 the fastest growing form of social contribution was Microblogging (not just Twitter), growing 28.4% in 18 months, with 14% of
global internet users now actively contributing on a monthly basis. This is followed by
Social Networking, which grew 20.8% and video sharing 19.9%. In contrast, contributing
to a website, only grew 6.4%, blogging 3.4% and posting in a forum or BBS actually
declined 5.8%.
30
MEDIACOM | BLINK #3
MEDIACOM
BLINK ##33 | MEDIACOM
31
CONTENT
A GLOBAL SOCIAL MEDIA SNAPSHOT
BRIC AND EMERGING
MARKETS LEAD THE WAY
THE IMPACT OF THE POST PC ERA
platforms is increasingly in Real-Time environments,
whether that be Twitter and Facebook in the US or
The adoption of all mainstream social technologies
will be revolutionised by the way that people get
Sina Microblog or RenRen in China. This has a major
is being led by fast growing internet markets. This
online. This is already happening with the massive
LPSOLFDWLRQRIWKHLPSDFWRIVRFLDOPHGLD:KHQVRFLDO
is demonstrated clearly by monthly involvement in
WHFKQRORJLHVDUULYHGLWZDVGHNjQHGE\FRQVXPHUV
social networking, where 76% of internet users in
fast growing markets, the internet and social media
from 32% of internet users to 45% of internet
creating and publishing their content. This was seen
Philippines and Indonesia use one. This is followed by
are thanks to a lack of competition from traditional
users on a monthly basis, in just 18 months. This is
very much as threat to the established media industry
Malaysia with 68%, Brazil and Russia with 64% and
media usually the number one form of entertainment
only the start in the shift to the post PC world. In
and professional content producers, however real-
India 63%. Compare this to the US, where 53% are
IRUWKHFRQQHFWHGFRQVXPHU:HDOVRVHHWKDWXVHUV
February 2011, we asked what the favourite internet
time platforms do not enable content creation and
active, UK 46%, France 41% and Japan just 16%.
in fast growing markets are using social media to
device was today and 86% stated their personal PC
achieve personal success, either through education,
/ Laptop and just 1% a tablet device and 5% their
In short consumer contribution via social media
As we look forward, we can see that social media
growth of mobile internet adoption that has grown
are focusing users on sharing opinions, other peoples
content or responding to or interacting with live
The higher levels of adoption are demonstrated regard-
their own business or through work – something
mobile. However when asked what their favourite
events. As our research shows, the top three forms
less of which demographic, attitudinal outlook or job
that is not universal in developed markets. Social
device will be in one year, just 54% stated their PC
platforms have also been adopted as form of free
/ Laptop and a massive 15% stated Tablet and 15%
H[SUHVVLRQDQGDFKDQFHWRH[SUHVVLQGLYLGXDOLW\
mobile. Even 8% mentioned an internet connected
something that traditionally didn’t come easily in
television set. This demonstrates clearly the massive
hierarchal societies like China, South Korea or India.
demand to move to post PC devices, a shift that will
"SOCIAL MEDIA IN MANY WAYS
IS BECOMING LESS SOCIAL".
again radically transform social media. Mobiles,
tablets and TVs are dominated by applications
of microblogging behaviour after sharing photos or
type you compare. Users in fast growing markets are
The massive adoption of social media has funda-
and shift consumers from the open platform of
images, are linking another microblog, linking to
doing more with social media. The country you are
mentally changed the way that consumers want to
the browser based internet. This will focus social
videos and linking to news stories.
born in, is without doubt the key factor in how you will
interact with brands and there is now a real desire
involvement on content sharing not creation and
go on to adopt and use social media.
to interact, converse and be entertained by brands.
re-enforce the shifts that have been initiated by the
:KHQDVNHGDERXWZKDWƄVRFLDOEUDQGDFWLYDWLRQƅ
real-time revolution.
&RQVHTXHQWO\UHDOWLPHKDVFUHDWHGDUHQDLVVDQFH
$WWKH*OREDO:HE,QGH[ZHKDYHVSHQWPXFKWLPH
WHFKQLTXHVDUHPRVWOLNHO\WRLPSURYHWKHLURSLQLRQ
content, live events and access to journalists, celebri-
H[SORULQJWKHZK\ZHVHHWKLVDQGWKHUHDUHDQXPEHU
of the participating brand, the number one action
ties and people in the public eye. Thanks to this trend,
of clear reasons. Firstly in developed markets, people
regardless of age was to “listen to comments on
social media in many ways is becoming less social.
have been online longer and their online behaviour
purchasing, information research and news content.
:HDOVRVHHIDUJUHDWHUFRPSHWLWLRQIURPWUDGLWLRQDO
PHGLDZKHUHKLJKFRVWNj[HGLQIUDVWUXFWXUHRI
cable/satellite, multi room TV households, or games
consoles erode our need to turn to the internet. In
MEDIACOM | BLINK #3
PHOTOGRAPHY MEENA KADRI
in the traditional media business, as they have the
KDVEHHQGHNjQHGIURPDSUHVRFLDODJHIRFXVHGRQ
32
THE NEW OPPORTUNITY FOR BRANDS
forums/social networks”, this was followed by a
“website/presence to interact with the brand directly”
and then “creating applications / online services”. It
is clear the role of a brand as simply an advertiser is
over and concerns about a brands right to be active
in social spaces is misplaced. Consumers crave and
value brand interaction in all forms.
BLINK #3 | MEDIACOM
33
BRAZIL
RUSSIA
INDIA
CHINA
AVERAGE AGE
38.5
ź
TELEVISION SETS
MILLION
BILLIONAIRES IN CHINA TODAY
PERSONAL COMPUTERS
SOURCE: PRESSREFERENCE.COM
900
55.000
MILLION
MOBILE
PHONES
SOURCE: 2010 HURUN WEALTH REPORT
SOURCE: SPIRITOFCHENNAI.COM
SOURCE: CHINATODAY.COM
SOURCE: DISCOVERDIGITALLIFE.COM
+30
THE EMERGING
SUPERPOWERS
OF THE WORLD
CLIMATE RANGE
THROUGHOUT
THE YEAR AND
ACROSS RUSSIA
77
HIGHEST TWEET
7200M
DISCOVER BRIC, TNS
IN RUSSIA
WORLDS
LARGEST
SOURCE: CARADVICE.COM
SOURCE: DISCOVER BRIC, TNS
FROM MOUNT EVEREST
137
BRAZIL
HAS THE
NEW CARS (SOLD IN APRIL 2011)
HALF OF CHINA'S
POPULATION WILL
LIVE IN CITIES AND
TOWNS IN 2015.
SOURCE: DISCOVERDIGITALLIFE.COM
-50
NUCLEAR POWER PLANTS
1.55 MILLION
NUMBER OF FRIENDS
ON SOCIAL NETWORKS
SOURCE: TECHCRUNCH.COM
ź
SOURCE: WIKIPEDIA.ORG
HELICOPTRE
FLEET
10.5 MILLION
NEW DELHI
21.5 MILLION
ź
MOSCOW
ź
6.5 MILLION
ź
RIO DE JANEIRO
ź
DISCOVER BRIC, TNS
BEIJING
19.5 MILLION
CONTENT
CONTEN
CON
TENTT
TEN
CONSU
CO
NSUMER
NSU
MERS,S, NEW MA
MER
MARKE
RKETS
RKE
TS
NEW CONSUMERS,
MARKETS
NEW CONSUMERS,
NEW MARKETS
PICTURE THE SCENE. THE FUTURES COMPANY’S CHIEF
EXECUTIVE, WILL GALGEY, ON A TRIP TO SHANGHAI,
RETURNS TO HIS ROOM AFTER BREAKFAST, TO FIND
THAT THE STAFF HAVE ALREADY STARTED TO CLEAN IT.
THE TELEVISION HAS BEEN RE-TUNED TO CNN, AND
THE MAID IS TRYING TO TELL HIM SOMETHING.
TEXT BY ANDREW CURRY, THE FUTURES COMPANY
ILLUSTRATIONS BY MARK VERHAAGEN
As he later blogged,
Ƅ6KHZDVJHVWLFXODWLQJZLWKKHUNjQJHUVWRPDNHWKHQXPEHUƁWZRƂDQGSRLQWLQJDWWKH
WHOHYLVLRQ0\0DQGDULQZDVQREHWWHUWKDQKHU(QJOLVKDQGLWZDVRQO\DIWHUVKHOHIW
WKDW,VDZWKHQHZVWKDW&KLQDKDGMXVWRYHUWDNHQ-DSDQWREHFRPHWKHVHFRQGODUJHVW
HFRQRP\LQWKHZRUOGƅ
For Galgey, the story was about the pride the Chinese have in the country’s recent
economic achievements – compressed into less than a lifetime. It is, say the IMF,
only a few years before she will be able to celebrate China’s arrival as the largest
economy in the world, at least by some measures of spending power. And where
China goes, India and Brazil are following.
The speed of this transition has been remarkable. By 2030, Asia’s economy could
be larger than that of the US and the European Union combined, with the region’s
share of world GDP swelling from a little under 30 per cent to more than 40 per
FHQW$FFRUGLQJWR$QRRS6LQJKKHDGRIWKH,0)ƂV$VLDDQG3DFLNjF'HSDUWPHQW
“Twenty years from now, Asia’s economy as a whole will be larger than that of
the G-7 and half the size of the G-20”. And Latin America—which, like Asia, had its
NjQDQFLDOFULVLVHDUO\ƀLVJURZLQJDWVSHHGDVZHOO
36
MEDIACOM | BLINK #3
BLINK #3 | MEDIACOM
37
CONTENT
NEW CONSUMERS, NEW MARKETS
:KHQWKHHFRQRPLFWUHQGVDUHFRPELQHG
billion people, spending a total of $6.9
—it still has the largest population of the
wind turbines. Huawei, similarly, was
trillion annually. Our research suggests
world’s poor within its boundaries, some
SHIFTS IN CORPORATE
OWNERSHIP
company, China Mobile, meanwhile, is
with population changes and urbanisation,
among the world’s ten biggest companies
listed as one of the world’s top innovators
it is not surprising that the world is now
WKDWWKLVNjJXUHZLOOULVHWRWULOOLRQ
350 million.
Perhaps, so far, the biggest fundamental
by market capitalisation, with more than
by Thomson Reuters. Network provider
ORRNLQJWRWKHVRXWKDQGVRXWKHDVW:HDUH
GXULQJWKHQH[WGHFDGHƀDERXWWZLFHWKH
economic shift has been the global changes
508 million consumers. It has also pushed
China Mobile is now one of the top
likely to see another billion people on the
current consumption in the United States.”
And in Asia, in particular, there is poor
we are starting to see in ownership.
its way into the top ten of the brand
ten global brands in Millward Brown’s
SODQHWLQWKHQH[WWZHQW\\HDUVZKRZLOO
The goldrush, it seems, is on.
social protection, for dealing with unem-
There are now 61 Asian businesses in the
YDOXHVXUYH\%UDQG=7KLVDFTXLVLWLRQ
annual BrandZ rankings – a list that
ployment and healthcare, which means that
FT’s Global 500, based in China, India,
trend seems certain to continue. Because
DVVHVVHVFRQVXPHUEUDQGHTXLW\DVZHOO
mostly be found in the new mega-cities in
Asia. And Asia and Latin America also have
There are some wrinkles, though. It is
families save instead of spending. From
Taiwan, Singapore and Indonesia, and
developing markets have weathered the
DVNjQDQFLDOSHUIRUPDQFH7KHQRWLRQ
younger populations—certainly compared
unlikely that China, in particular, will
a global perspective, this has meant that
Asian multinationals are reshaping some
global downturn better, they are in a
WKDW:HVWHUQEXVLQHVVHVGRWKHGHVLJQ
of the world’s biggest industries. It is not
position to buy. A Grant Thornton survey
and leave the low-cost production to
coincidence, either, that Bill Gates has been
in March this year shows that 44% of
the Global South is rapidly becoming
displaced as Forbes’ richest man by the
privately held businesses in Brazil, Russia,
out-dated.
0H[LFDQWHOHFRPVW\FRRQ&DUORV6OLP
India, and China are planning to grow by
WE SEE MARKETS WHICH HAVE STRONG AND SUCCESSFUL LOCAL
PLAYERS, WITH SKILLED WORKFORCES, DIFFERENT PATTERNS OF
INNOVATION, AND WHICH ARE MOVING RAPIDLY UP THE VALUE
CHAIN AND INTO NEW MARKETS.
38
DFTXLVLWLRQLQXSIURPODVW\HDU
And there are two big implications from
The result is a re-shaping of the world’s
In other words, the story here is not
DOORIWKLV7KHNjUVWLVDERXWLQQRYDWLRQ
industrial landscape. In the car business,
the one that’s usually told. This is not a
the second about brands and branding.
IRUH[DPSOH9ROYRKDVEHHQDFTXLUHGE\
tale about virgin consumer landscapes,
China’s Geely, after changing hands for
ZLWKSHRSOHDQ[LRXVO\ZDLWLQJIRUWKH
to Europe and Japan—which gives them, for
continue to grow at the same hectic rates
China has been able to carry on underwrit-
$1.5 billion. India’s Tata group now owns
GHOLJKWVRIWKHZRUOGƂVNjQHVWSDFNDJHG
THE IMPLICATIONS FOR
INNOVATION
the time being, an economic and innova-
we have seen over the last couple of
ing America’s debts, but it is not a route to
Land Rover and Jaguar, as well as being
goods products. Instead, we see markets
:HDUHLQFUHDVLQJO\VHHLQJLQQRYDWLRQ
tive energy.
decades. Like India, it is rapidly moving
a balanced or stable global economy. Even
the world’s largest steelmaking group. In
which have strong and successful local
emerging from the new competitors
out of the stage of being a low cost
RUWKRGR[HFRQRPLVWVKDYHVWDUWHGWRSRLQW
telecommunications, China’s Huawei is
SOD\HUVZLWKVNLOOHGZRUNIRUFHVGLNJHUHQW
in Asia and Latin America which has
The consultancy McKinsey has put some
SURGXFHU,VVXHVRILQHTXDOLW\FRQWLQXHWR
to the successes of Latin America in this
the world number two in mobile-infra-
patterns of innovation, and which are
originally been designed for local markets.
numbers on the scale of the coming
surface. Resource shortages, in particular
respect. Generally left-of-centre govern-
VWUXFWXUHHTXLSPHQWEHKLQG(ULFVVRQ,WV
moving rapidly up the value chain and
6XFKSURGXFWVWHQGVWRKDYHVTXHH]HG
global shift. In typically breathless style,
food and water, are already causing
ments have started to address high levels of
rise has provoked a major restructuring
into new markets. Most of the world’s
out features and materials to reduce
it reports, “The rapidly growing ranks
problems. Pollution is problematic. In
LQHTXDOLW\DQGLQFUHDVHGVRFLDOSURWHFWLRQ
of the global market, which saw Siemens
science and technology graduates now
cost. Historically, such products would be
of middle-class consumers span a dozen
India, corruption remains an acute issue,
with the result that people have started
and Nokia merge network infrastructure
come from China and India, and China is
XQOLNHO\WRJDLQWUDFWLRQLQPRUHDǎXHQW
emerging nations, not just the fast-growing
and—for all the millions who have been
to buy more, creating more balanced, and
GLYLVLRQVDQG)UDQFHƂV$OFDWHODFTXLUH
already—by some distance—the world’s
markets, but in a post-crisis climate, more
BRIC countries, and include almost two
lifted from poverty there
more prosperous economies.
America’s Lucent. The Chinese telecoms
largest producer of both solar panels and
DǎXHQWFRQVXPHUVDUHLQFUHDVLQJO\DOVR
MEDIACOM | BLINK #3
BLINK #3 | MEDIACOM
39
CONTENT
NEW CONSUMERS, NEW MARKETS
Ɖ 6 KDQJ;LD6KDQJ;LDLVDQHZ+HUPªV
There are always risks here; Coca Cola
savvy shoppers who understand that
refrigerated storage. The lessons learned
designed for Ghana. But this might canni-
choice comes with a cost.
from Bangladesh helped Danone launch a
EDOLVHH[LVWLQJSURGXFWVDQGKXUWPDUJLQV
OX[XU\EUDQGODXQFKHGODVW\HDUWDUJHW-
discovered the hard way in India that its
low-cost yogurt sub-brand called Ecopack
But this is a classic business conundrum: if
ing the Chinese market. Historically,
American approach to water management
in France.
you don’t launch these products yourself,
+HUPªVH[SDQGHGE\EX\LQJH[LVWLQJ
created more enemies than friends, and has
DFRPSHWLWRUZLOOƀDQGTXLWHOLNHO\DQHZ
brands. But as with dENiZEN, Shang
spent the best part of a decade developing
competitor from Asia or Latin America.
;LDLVEHLQJODXQFKHGIURPWKHJURXQG
GLNJHUHQWDSSURDFKHVZKLFKHQVXUHWKDW
up, using local know-how and materials
local communities are not disadvantaged by
So Huawei’s $100 smartphone has been
developed for the Asian and African
markets, but there are already signs of
In the specialist health sector, Medtronic
a ‘grey market’ which imports handsets
developed for the Indian market a low-cost
into the US. The Tata Nano is a lightweight
pill-sized pacemaker which could be
THE IMPLICATIONS FOR BRANDS
to build a global presence at a lower
the presence of a Coke plant, rebuilding its
car that has been designed against Indian
inserted in the heart using a stent. This
,QFUHDVLQJO\LQWKLVZRUOGZHH[SHFWWR
SULFHSRLQW$+HUPªVUHSUHVHQWDWLYH
reputation slowly as it goes.
pricepoints, but which is likely to be modi-
was both a simpler procedure—so more
VHHEUDQGVRSHUDWLQJLQPRUHFRPSOH[
has insisted that it is “a Chinese brand,
NjHGWRFRPSO\ZLWKPDUNHWUHJXODWLRQVDV
surgeons were capable of carrying it
ways than in the past to manage the
developed in China with the Chinese
But the bigger challenges are in the deep
a low cost model for Europe and elsewhere.
out—and the design also included a sensor
FRPSOH[LWLHVRIGLNJHUHQWPDUNHWVQHZ
team, based on Chinese craftsmanship
UHVWUXFWXULQJRIWKHZRUOGHFRQRP\:KHQ
for remote monitoring. The company now
FRPSHWLWRUVDQGPRUHFRPSOH[FRQVXPHU
DQGEURDGO\PDGHLQ&KLQD:HGRQƂW
China does become the largest economy in
And global brands have also been learning
plans to launch this in the United States
behaviour. As we argue in our recent
want any confusion.” The challenge
WKHZRUOGLWZLOOEHWKHNjUVWWLPHWKDWWKH
how to adapt innovation from the South
and Europe, and sees opportunities to
report on The Future of Global Brands,
IRU+HUPªVDVRQHVFKRODURIWKH
largest economy has not also contained
for their traditional markets. From our
adapt it for other health conditions, such
increasingly, global brands will start to
&KLQHVHOX[XU\PDUNHWKDVQRWHGLV
the richest consumers. However large
Streetscaping network, we see increasing
as Parkinson’s.
build local brands, sometimes in partner-
WKDWSURGXFWVVSHFLNjFDOO\WDUJHWLQJ
the growth of the ‘emerging middle class’
ship with local businesses, using local
the Chinese market are often “less
RYHUWKHQH[WGHFDGHWKH\ZLOOVWLOOEH
QXPEHUVRIH[DPSOHV)UDQFHƂV*URXSH
'DQRQHIRUH[DPSOHOHDUQHGDERXWUHYHUVH
Sometimes, such innovation is just a
H[SHUWLVHWRƄFRFUHDWHƅQHZSURGXFWVIRU
welcomed than products that are
far poorer than the middle classes in the
innovation in Bangladesh, where they
matter of repositioning a product for a
this emerging middle class, rather than
totally foreign”. It will be interesting
DǎXHQWZRUOGƀHYHQDVWKRVHPRUHDǎXHQW
set up local microplants that produced a
QHZPDUNHWƉ1HVWO«ƂV0DJJLEUDQGƀORZ
PHUHO\FRS\LQJH[LVWLQJOLQHV
WRVHHLI+HUPªVƂFRFUHDWLRQPRGHO
FRQVXPHUVDUHVWLOOVTXHH]HGE\GHEWDQG
tiny fraction of the yogurt of a standard
cost, low-fat dried noodles developed for
resolves this challenge.
rising costs. The big opportunity is for
facility, partly because of the lack of
rural India and Pakistan—found a market
in Australia and New Zealand as a healthy
and budget-friendly alternative. P&G,
innovation for a crowded planet which uses
Some examples:
Ɖ G (1L=(1E\/HYLVG(1L=(1ZDV
Ɖ %
RQ9L/DXQFKHGLQ*KDQDLQE\
less resources, costs less to produce, and
Amway, BonVi—a range of personal,
still rewards its innovators. It will take a
YHU\GLNJHUHQWPLQGVHW
similarly, found that the market for its
launched last year in Shanghai, the
nutritional, and household products—was
0H[LFDQ9LFNV+RQH\&RXJKFROGUHPHG\
NjUVWWLPH/HYLVKDVODXQFKHGDEUDQG
developed through a live prototype
V\UXSFRXOGH[WHQGWR:HVWHUQ(XURSH
from the outside of the US, and the
run in rural Ghana involving in-home
and the US
NjUVW/HYLƂVEUDQGWRKDYHLWVKHDGTXDU-
interviewing and village charrettes with
WHUVRXWVLGHWKH867KHNjYHSRFNHW
feedback on everything from product
Of course, there are risks in this. Philips
jean is aimed at 18 -29 year-olds in
samples to the proposed colour of the
KDVFRQVLGHUHGODXQFKLQJLQWKHDǎXHQW
China, Singapore, South Korea, and, in
brand identity. BonVi aims at a mass
world the low-cost solar-powered lighting it
the future, India. Levi’s calls this target
market using local engagement to
group “Asia Rising.” In style and price,
FRQYHUWH[LVWLQJ$PZD\SURGXFWVWRNjW
these jeans are all about this new
local needs, and co-creation to identify
global consumer. As importantly, these
additional needs learned from local
jeans represent a ground-up approach
collaborators that can be met by new
to building a global presence.
products within the global capabilities of
$GGLWLRQDOUHVHDUFKE\$QDQG5DR
$PZD\VXFKDVZDWHUSXULNjFDWLRQWDEV
40
MEDIACOM | BLINK #3
BLINK #3 | MEDIACOM
41
SS: You’ve always been bullish about globalisation – are you still?
SS: But they thought it was slightly naughty of the United States
to indulge in quantitative easing and, as far as the Brazilians
saw it, deliberately undervalue the dollar?
JO: Yes. Although I don’t recall myself always being bullish; but I have
been for the past decade or so.
JO: The US’s job is to follow a monetary policy that satisfies the US.
The quicker they can follow policies that help the US get out of
troubles they’ve been in, the more likely it is that the dollar will
eventually recover. The Brazilians know that, as well as I do.
SS: So as emerging markets continue to grow it benefits the old
industrialised world?
JO: Broadly speaking I think that’s right. I think globalisation and the
cross-border trade linked to it is one of the few win-wins that are out
there. Of course there are losers, but in aggregate I think everybody is
better off. What’s interesting at this moment in time is that we see a
few more signs that there are winners from the supposed ‘declining’
west, which is a key in order for the social aspects of this to be
accepted and tolerated.
SS: You don’t like to use the term ‘emerging’ economies,
is that right?
JO: I think it’s an insult. We’re living through an era where the world
economy, for close to a decade, has been driven by these guys,
increasingly so. To treat them in the same way verbally, or
any other way, as commentators have done in the west
is almost disrespectful.
SS: Not being disrespectful but realistic, do you believe that
China, for example, can continue to grow on the rate it has?
Is that sustainable?
Jim
O’Neill
HARDtalk is the flagship programme
on BBC World News that asks the difficult
questions. In this special series of interviews
for Blink, Stephen Sackur, one of the BBC’s
most respected journalists, adopts the same
uncompromising style with moguls and
figureheads shaping the worlds of advertising,
sales and media. This issue, Stephen goes
head to head with Jim O’Neill, Chairman
of Goldman Sachs Asset Management.
BBC WORLD NEWS is a trademark of the British Broadcasting Corporation, © BBC 1996.
JO: I don’t think they will grow by that rate this decade. I think they
will drop to the ‘intolerable’ [laughs] level of around 7% to 8%,
which by our standards is quite remarkable. But China’s starting
to have dilemmas whether to keep growing at that pace. Having
spent a lot of time there, I think we’re entering a phase where
China is all about quality of growth, as opposed to just quantity,
which is a very important subtle shift.
SS: Your company, Goldman Sachs, said last year that China
will overtake the United States, at best guess, by 2027.
Do you think that was too cautious?
JO: Well, I was a part of that. The momentum at any moment in time
seems to be so powerful right now, that it may seem it was a bit
premature, but China will go through ups and downs just like
everybody else, so I’m highly reluctant to formally suggest that it
could happen sooner. And of course there are various things that
could happen in the meantime, that would have never actually
happened so...
SS: But you don’t believe it will happen sooner do you?
JO: No, I don’t. The thing that impresses me so much about the
Chinese situation is that the policy makers themselves worry
about what the sceptics say, which I see as a good sign. It stops
them from getting into the trap other countries did. Japan being
a perfect example, having been either in denial of any challenges
or just ignoring them.
SS: But that threatens your rather rosy view of how all of
this is going to play out, benignly?
HARDtalk presenter, Stephen Sackur
SS: But it isn’t all about China. By 2030 PwC says that China,
Brazil, Russia, India, Mexico, Turkey and Indonesia, the so
called E7, will be more economically powerful than the G7.
JO: That’s very consistent with the reason why the BRIC term became
so popular. Five years back we said that the 4 BRIC countries would
become bigger than the G7 by 2037. Add in the others and that’s
almost definitely right. Also, by the end of this decade the 4 BRIC
countries will be bigger than the US. We are talking about profound
changes in the world economy and society. From an investment
perspective, it feels like what the California Gold Rush must have felt
like. The degree of change is just incredible.
SS: Let’s start unpicking it... There are signs of serious problems
in China. Inflation is high, the government is raising interest
rates and it’s still not clear that it can prevent a bubble
economy developing.
JO: One of the fascinating aspects of this, particularly on the
back of the global crisis, is that we are in an environment
where political leaders around the world play the blame game.
Everybody wants to blame somebody else, that’s a mini-dilemma
of the globalised world we live in. And due to the power of the
information process, where everybody has access to everything
imminently, people cannot separate emotion from objectivity.
The fact of the matter is Brazil is living through an era where tens
of millions of people are being brought into the middle classes.
On a global basis, we’re probably living through the best era;
income differentiators being narrowed, hundreds of millions
of people being taken out of poverty. So to use phrases like
‘currency wars’ in an environment where that’s happening
is just ridiculous.
SS: And international institutions and systems like the IMF
and the WTO look increasingly toothless.
JO: I hear these things week in and week out. Eighteen months ago it was
highly fashionable to say China was on the verge of a housing bubble.
And they could have been but, very interestingly, the Chinese worried
about it enough to stop a housing bubble. On the inflation, you are
right, the Chinese are worried about it and that’s what you want to
see. I worry when I see the local policy makers dismissing the problems
that face them.
JO: We need a faster move of international organisations to cope
with the complexities and subtleties of how the world is evolving.
We still have very western dominated international organisations,
which many of these (growth) countries feel do not represent their
shared interest. In order to keep the benefits going, we need to move
more rapidly to reform the IMF, the World Bank... The G20 is a good
development in that regard but it needs to be made more successful.
Probably, also the UN and maybe even the whole international
monetary system as it currently stands.
SS: Talking about Brazil and other growth economies, are we seeing
a real possibility of currency wars?
SS: Does the situation in Europe, particularly in the Eurozone
penetrate your optimistic armour?
JO: The Brazilians themselves dreamt up this phrase and I’ve written to
them and spoken publicly about it; I think it was slightly naughty of
them to use this phrase.
JO: The EU example is more complicated. The crisis is worse since
January. People need to differentiate between the EU economy
and the EU monetary... The Eurozone crisis is about the structure
of the monetary union.
“By the end of this decade the 4 BRIC
countries will be bigger than the US.
We are talking about profound changes
in the world economy and society.”
Based on the interview that aired on 10 January 2011.
Updated with Jim O’Neill on 6 June 2011.
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CONTENT
THE HOUSE THAT TOOK OVER RUSSIAN TV
THE HOUSE
THAT TOOK
OVER RUSSIAN TV
REALITY DOMINATES PRIMETIME TV EVERYWHERE IN THE WORLD. IN RUSSIA,
THE HOUSE HAS SWEPT ALL BEFORE IT. DOBRINYA GUTIEV AND VERA KAGAN
EXPLORE THE SUCCESS OF DOM-2.
For the last eight years, Russian TV
record-breaking 8m Roubles.
schedules have been dominated by Dom,
People have remained loyal to the show
to get involved. International brands, in
early as 2005. The TNT channel earned
they should invest in the show or not.
because it’s interesting. For young people
particular, stayed away at the start.
$7m from indirect advertising and
Many – who naturally are not in the
sponsorship in a single season.
show’s target market – reject integration
Russian for The House. It’s a spectacularly
The House was so successful that in May
who live with their parents, Dom-2 shows
successful reality TV format that has
2004, the TNT-owned channel tweaked it
the basics of a self-reliant life, letting them
Local companies, however, were less
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to create Dom-2 (The House-2). This time
see real human behaviour and study other
reticent. Russian mobile operator Megafon
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feelings towards the show.
commercial caution to strike it big.
round 20 young boys and girls signed up
people’s mistakes.
used Dom-2 to raise the brand loyalty and
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They may have to change their views,
brand recognition – after seven months
however, the commercial performance
however, as the economic climate has
brand loyalty increased by 20%.
started to decline.
changed. After 10 years of impressive
with no end in sight. More than 400
Step-by-step international brands have
TAKING PART
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ner. To win they had to form a relationship
GAINING POPULARITY
TV, that honour falls to Behind the Glass –
with another participant.
Dom-2 has been on air for seven years
similar to Big Brother – which ran in 2001
growth when there was little need to take
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Over the years the focus of the show has
people have taken part and more than 10
become involved, to the point where
TNT has now changed its sales policy and
lives of participants.
changed. Instead of simply rewarding
couples have got married.
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only allows 5-10 products to get involved at
Growth rates have now shrunk to around
More than 90 brands – including Huggies,
any one time to decrease clutter. The show
4% – from around 6-8% – and brands need
participants for their mastery of building
The success of Behind the Glass was a me-
skills, the programme now spies on them.
However, while the show continues to
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has also become a multimedia operation:
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too moment for TV, with every channel
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be one of the highest-rating shows in
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there is a magazine, which sells more
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starting its own reality projects. TV-6 in
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Russian TV history, it hasn’t always
than 100 000 copies a week, participants
pushed traditional strategies out of reach
particular invested heavily in the genre,
episodes and online translations keep the
been popular with brands, regulators or
After Remington’s integration into the
tour all over Russia and appear across the
for some brands. Sponsorship on shows
putting reality shows front and centre of
audience informed almost 24/7.
religious leaders.
show, young ladies headed to the shops
media landscape, on popular Russian TV
such as Dom-2 can generate a big impact at
saying: “I want the same curling irons as
talkshows and in TV commercials.
a relatively low cost.
its schedule.
44
opportunities as a result of their personal
The show is also no longer about introduc-
Due to the nature of some of the content,
the girl from Dom2”. Remington’s brand
It hit gold in June 2003 with the launch of
ing a completely new set of participants
it has had to retreat from the daytime
recognition increased from 20% to 70% and
Online Dom-2 attracts more than 40,000
Those that do take the plunge need to
The House. Based on a format developed
every year but about getting to know a
schedules and now airs only after 23.00.
sales went up sevenfold.
XQLTXHYLVLWRUVSHUGD\DQGKDVDERXWD
make sure they take full advantage of the
by British company Zeal, it challenged
rolling group of competitors. Some of
million registered users. It’s become a
opportunities Dom-2 provides. Once you
couples to spend four months building
them have been in the house for more
The Russian Church protested against
According to the company Gallup Media
media juggernaut.
enter The House there can be no
a house, without any professional
than three years and viewers will always
the show and its participants and,
Russia, Dom-2 became a leader in product
help. The prize for the winners was a
recognise a familiar face.
initially at least, brands were reluctant
placement in the Russian TV market as
MEDIACOM | BLINK #3
half measures.
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BLINK #3 | MEDIACOM
45
CONTENT
TWITTER
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