Volume 6, Issue 4

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Featured Content
Volume 6, Issue 4
Digital Predictions for 2014
Develop Great Creative for
Your Video Ads and Maximize
Viral Potential
Innovations in Branding:
Pedaling From Talking to Doing
BrandZ Top 50 Most Valuable
Latin American Brands 2013
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POINTS OF VIEW
Point of View
Measuring Long-Term Ad Effects:
A Meaningfully Different Approach
At the recent Australian Effie Awards, the judges decided not to give an award
in the Long-Term Effects category. Journalist Rosie Baker, who found it worrying
that there wasn’t any work worthy of a long-term award, wrote an opinion piece
in which she said: “The pressure to deliver instant results means that people
are hobbled in their ability to look long term. It’s difficult to look long term
when the axe falls after two poor quarters. But by not looking longer term, the
industry is doing itself a disservice, and it is a hard cycle to break.”
Baker’s observations are not dissonant with our
own. Among the ads we tested during the global
financial crisis, we saw an increase in the number
that were aiming for short-term returns. That
number is now falling, but we still encounter
many advertisers who are primarily interested in
Daren Poole
understanding an ad’s short-term potential, even
Global Brand Director,
though it is widely accepted that most advertising
Creative Development
[email protected]
doesn’t pay for itself in the short term. One of our
studies found that only 14 percent of campaigns
were able to do that—and our observations are not different from those of
other practitioners.
There’s nothing wrong with measuring the potential of advertising to deliver
short-term sales. But we estimate that only about 5 percent of total brand
volume results from short-term ad effects. Therefore, ad assessments based
primarily on the prediction of short-term effects may not always result in
the best decisions being made for the brand.
As advertising and research professionals, we know much more than we
did two decades ago. We know more about how brands grow and become
successful. We know more about the role of advertising in this process. We
need to evaluate advertising with this learning in mind. The result will be
more balanced assessments of what an ad may contribute to the long-term
health of a brand.
It Takes Time to Build a Brand
Brands are not built in a day or a week or a month—or over the course of
one marketing campaign. Look around. With few exceptions, the strongest
brands have been around for years, even decades. Brands are built over time.
But when we “build” a brand, what are we really building? Our definition of
a brand, which is shared by most in our industry, is “the set of associations—
ideas, memories, and feelings—in the mind of an individual.” So if advertising
is going to build a brand, it needs to build associations, because it is those
associations that will ultimately motivate people to buy.
We know this to be true; using tracking data and structural equation modeling,
we have repeatedly demonstrated the effect of advertising on key elements
of brand equity, and recent modeling work done for a large B2B service
company has documented the link between specific impressions created
by an ad and subsequent brand revenue. We observed revenue growth that
was 12 percent higher among those who endorsed the brand as being “easy
to work with.”
In this case, the payoff came in the medium term. (Our measurements were
taken six months after the campaign started.) But, as Gordon Brown pointed
out some 25 years ago, associations created by advertising can also have
latent value when they enhance the brand in a consumer’s mind long before
he or she has a reason to buy it.
Gordon observed that many TV commercials, when viewed, would not
have an immediate effect on people’s intent to buy the brand. “The one
time nobody wants to take decisions about brands is while watching TV,”
he said. But later, when a consumer might be shopping and in the mood
to try something different, the impressions and associations established by
an advertisement could come to the fore and influence brand choice. This
potential long-term advertising effect has not gotten enough attention in
ad evaluation up until now.
Measuring the Brand-Building Potential of Advertising
Today, Millward Brown understands brands and brand associations in the
context of what we call the “Meaningfully Different Framework,” which is
summarized in Figure 1. The foundation for this framework is, of course, the
idea that impressions and associations accrue to brands over time. At the
heart of the framework is our observation that brands people consider to
be meaningful, different, and salient are able to command a greater volume
share or charge a premium price, or both.
Figure 1: Meaningfully Different Framework
Many things besides advertising contribute to the formation of brand
associations. Experience with the brand is particularly important, as is word of
mouth. But advertising is a critical factor, not only for forming associations for
new brands, but also for strengthening and reinforcing existing associations,
and for keeping established brands salient. Thus it is essential to understand
this aspect of an ad’s performance.
We now have questions in our Link ad evaluation system that predict the
ability of an ad to build meaningful and different brand associations. The
responses to these questions are summarized in a new output called the
Power Contribution, which describes an ad’s potential to influence brand
equity. To create the Power Contribution, the scores on meaning and
difference are combined and multiplied by the brand’s predicted Awareness
Index (AI), which is a measure of branded memorability. The AI is used as a
multiplier in recognition of the fact that no matter how well an ad conveys
that a brand is meaningful and different, it won’t achieve long-term effects
unless it is noticed and remembered.
However, the Power Contribution is only a summary measure that indicates
an ad’s potential to build equity. It doesn’t tell advertisers how that equity will
be built—that is, what specific associations will work to establish a brand as
meaningful and different. While a message like “removes even the toughest
stains at 30˚C” will drive short-term sales among consumers who find it
relevant, the specific message is not what most consumers will take away
from the ad. In a research situation, respondents may pay close attention
and recall communication points verbatim, but when they watch the ads
in a “natural” TV-viewing setting, that is much less likely to happen. It is the
gist of the ad that is likely to leave an imprint; that is, they will remember
hearing something about stain-removing power, or effectiveness at low
temperatures.
It is important for us to understand what this advertising imprint is likely to
be. We do this by showing people an ad and then, after they’ve viewed it,
asking them for words that describe the brand. We summarize the responses
in a word cloud, as shown in Figure 2, which shows that the dominant
associations for this ad were modern, stylish, sleek, expensive, and quality.
Figure 2: Advertising Imprint
The Short Term: It’s Not All About Persuasion
Advertising needs to be evaluated in relation to what it can accomplish
for a brand. Sometimes, for some brands, short-term persuasion is the
objective, and a measurement of persuasion is a completely appropriate
action standard. Ads that feature news—of a new brand, a new variant, a
new positioning, or a promotion—are capable of driving persuasion and are
likely to be effective if the news is differentiating, credible, and relevant to
consumer needs.
However, news, even if you have it, isn’t news for long. Therefore, the effects
of persuasion are often short-lived and do not always contribute to longerterm brand growth. And many brands, particularly larger, more established
ones, rarely have real news to communicate.
But large established brands can and do succeed in generating short-term
sales uplifts. They do this by creating highly engaging advertising that
refreshes and renews existing brand associations. When this happens, the
effect is reflected not in the persuasion score but in the Awareness Index
prediction. We have found the Awareness Index to be a common factor in
both short-term and long-term advertising success, thus confirming that
creativity is the common driver of both.
Persuasion is a helpful measure when ads contain real news, but because that
occurs relatively rarely, we are encouraging the use of the Short-Term Sales
Likelihood (STSL) as a more appropriate measure of short-term potential.
Derived from the Awareness Index prediction and the persuasion score, and
more discriminating than either one, the STSL represents the probability of
a short-term sales uplift. It takes brand size into account, giving relatively
more weight to the AI for larger and more established brands. Thus it ensures
that persuasion isn’t overemphasized when it is not highly relevant.
Measure what matters
It will always be important to measure an ad’s short-term potential as well
as its short-term results. Ads that don’t have some immediate impact are
unlikely to be successful in the long term. However, it’s important to be
clear about what short-term success can be expected and how it can best
be measured; persuasion may be a relatively unimportant metric in many
situations.
While some form of short-term success is necessary, it is rarely sufficient.
Short-term growth isn’t a guarantee of long-term success. Therefore, it is
never appropriate to look only at the short term. Brands are built over the
long term, and so for most ads, the ability to creatively frame meaningful
and different associations for the brand is the key to both short- and longterm success.
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Point of View
Innovations in Branding: Pedaling From Talking to Doing
This is no time for branding as usual. Consumers have developed immunity to
traditional marketing tactics—they fast-forward through TV commercials,
block online ads, and overlook outdoor displays as they attend to their
smartphones. A brand whose basic marketing strategy relies solely on
conventional methods is unlikely to survive, let alone thrive, in today’s
crowded and competitive categories.
And so we are observing a tectonic shift in
marketing, as forward-thinking brands are opting
to engage with consumers in new and unexpected
ways. Instead of relying on traditional methods to
tell people about themselves, these brands are
finding ways to insert themselves directly into
Oscar Yuan
people’s daily lives. They are offering solutions
Vice President,
to problems, even problems that are beyond the
Millward Brown Optimor
[email protected]
purview of their product categories. By doing
this—by participating in people’s lives without
attempting to sell them products—brands can sidestep that naturally
skeptical response: “So really—what’s so special about your brand?” Instead,
they gain an opportunity to connect with consumers whose defenses have
been lowered by the brands’ friendly and helpful overtures.
Citi Rides to the Rescue
In New York City, known for its crowded subways, surly cab drivers, and pushy
pedestrians, getting around town is a problem, and Citibank has championed
a new solution. The multibillion-dollar financial giant (known derisively by
some New Yorkers as “Sh*tty Bank”) has shelled out $41 million to sponsor
the Citi Bike program. The new bike-sharing system, launched in May 2013,
has revolutionized transportation for millions of New York City commuters.
While not the first program of its kind, Citi Bike is currently the largest bikesharing program in the United States. For a low daily rate or an annual $95
membership fee, users can unlock a bike, ride to their destination, and return
the bike to any docking station.
In creating this service, Citi has demonstrated that their concern for their
customers goes beyond meeting their banking needs. They are effectively
telling people, “We understand that getting around the city can be tough.
Efficiency, convenience and environmental friendliness are all important to
us too, and we are doing something about it.”
Since its May launch, New Yorkers have traveled more than 5.5 million miles
on Citi-branded bikes, and in an informal New York Magazine poll, 40 percent
of Citi Bike users rated the program a 5, meaning “the world will never be
the same.”
Already, consumers’ feelings toward Citi have begun to shift. In our research,
one Citi Bike user who has ridden more than 100 times told us, “I have never
paid much attention to Citi’s advertising, and a commercial certainly would
not make me change my bank. But now I would definitely look at them as a
possibility in order to support them back for what they have done to change
my life.”
Other Brands Are Jumping on Board
Citi isn’t the only brand finding innovative ways to help. Samsung is also
leading the charge—literally—by alleviating another consumer pain point:
the flashing one-bar battery signal that indicates there are only a few minutes
left on a phone, tablet, or laptop. To help people facing this anxiety-inducing
moment, Samsung has outfitted 13 major airports, several college campuses,
the Mall of America, and the Las Vegas Convention Center with more
than 500 free Samsung-branded universal charging stations. Technology
blogging communities—the same forums that offer purchase advice—have
applauded Samsung for this action. Engadget praised Samsung for “giving a
nod to the little guy,” a sentiment likely shared by many consumers.
Samsung’s initiative is rooted in a deep understanding of the needs and
values of their customers. “Travelers rely on their phones every day to stay
connected to work and their family or friends,” said Dale Sohn, president of
Samsung Mobile. “The redesigned mobile phone charging stations ensure
they stay connected on the road.” Samsung’s sensitivity to people’s needs
is likely to engender a warm regard for the brand that will catalyze future
consideration.
Even marketers in categories as basic as toilet paper are finding ways to
participate in people’s lives. In 2009, the Procter & Gamble brand Charmin
launched the Sit or Squat smartphone application to help people find the
nearest clean public restrooms, mapping them out and displaying usergenerated reviews. Unsanitary bathrooms are designated as “squats,” while
more acceptable ones are designated as “sits.”
Since the launch of Sit or Squat, Charmin has been flushed with positive
buzz. People who ignore ads featuring fluffy dancing bears seem to notice
Charmin’s innovative effort; it has been mentioned on thousands of blogs
and has garnered over 200 million total media impressions. One grateful
individual told us: “Sit or Squat is one of my favorite go-to apps. Clean
bathroom options can be scarce, and I love that Charmin has really acted on
its mission rather than just telling people how it can improve their lives.”
Dove’s Beautiful Impact
Citi, Samsung, and Charmin have all provided people with concrete solutions
to logistical problems, but brands can also participate in people’s lives
by offering less tangible forms of support. They can build and strengthen
consumer relationships by demonstrating that they understand people’s
internal conflicts and tensions. For example, for almost a decade now, Dove’s
Campaign for Real Beauty has been addressing the lack of confidence felt
by most women in relation to their own
attractiveness.
Brands can also
strengthen consumer
relationships by
addressing people’s
internal conflicts and
tensions.
The “Real Beauty Sketches” video, released
this April as part of the campaign, exposes
the harsh and unforgiving judgments
women make about their own looks. The film
records a forensic sketch artist drawing two
portraits of the same woman—one based on
a description from the subject herself, the
other from a person who met the woman earlier that morning. Invariably,
the portrait produced from the latter description is much more flattering.
The video resonated deeply with consumers; according to Dove, it became
the most watched video ad of all time just one month after its release.
This video, along with other elements of the Campaign for Real Beauty, is
not only impacting women and girls around the world, but may also be
inspiring other companies and brands to follow Dove’s lead. For example,
the diet company Jenny Craig recently made a widely publicized decision to
drop celebrity spokespeople in their marketing. Whether you are creating a
tangible service such as a bike-sharing system or helping people feel a little
better about themselves, the principle is still the same. Brands need to step
Watch the ‘Dove Real Beauty Sketches’ commerical (Requires internet connection)
up and make a true positive impact on consumers’ lives.
Learn to ACT
Marketers should not be dissuaded by thinking that all the winning ideas
are taken. There is an ocean of unmet needs out there. Brands can provide
creative solutions to these problems by transforming their marketing efforts
from talking to doing.
If you’re considering such a transformation for your brand, think of three
things, captured in the acronym ACT: Assess people’s needs, Craft an
innovative solution, and Test for credibility.
Assess People’s Needs
First, assess people’s needs and desires. Think not only about your product
or category, but also about people’s lives in general. Research what they
care about and find solutions to problems that are not being addressed.
Citi understood consumers’ needs for convenience and efficiency; Samsung
understood that consumers feel empowered when they can stay connected.
These brands recognize that any successful marketing initiative must be
built on a foundation of deep consumer understanding.
Craft an Innovative Solution
The next step is to craft solutions that address the needs you identified.
Brainstorm how you can best serve consumers and improve their lives, even
in ways outside of your traditional realm. Citi aptly identified sponsoring a
bike share as a way to give consumers the ease and efficiency they wanted.
These initiatives can and should transcend your product category. Charmin
expanded the notion of its business from being a provider of toilet paper to
being a provider of comfort and security, which both their product and the
Sit or Squat app exist to provide.
Test for Credibility
An initiative that lies outside of a brand’s product category still needs to
bolster and support the attributes the brand wants to convey within its
category context. Therefore, you must give your solution a credibility test.
Ask yourself: Are we a reliable source to deliver this solution to consumers?
Are we fit to provide this offering, or does it contradict with other aspects of
our positioning? Will people be able to make a mental connection between
this initiative and our brand?
Don’t Just Talk—Do Something
We all know the old cliché “Actions speak louder than words.” While
traditionally applied to people, this saying is increasingly being taken to
heart by brands. Conventional communications may help improve brand
awareness and drive certain associations, but when people are making
purchase decisions, a brand that is part of their lives is more likely to get into
their consideration sets. By thinking more broadly—beyond their products
and associated benefits—brands can take on more active and appreciated
roles in the lives of consumers, thereby positioning themselves favorably
when purchase decisions are being made.
The challenge going forward, of course, is measuring and valuing these
initiatives. Citi Bike was only launched last May, so Citi acknowledges that
the exact ROI of the program has yet to be understood in terms of deposits,
account openings, or credit card spend. However, if consumer buzz and
sentiment are any indication, positive results are sure to follow.
For Citi, though, the bicycles are more than just a new marketing initiative.
They have set the company apart as an innovative, forward-thinking
marketer that understands and participates in the lives of its consumers.
Brand builders, let this be your call to action. How will you start moving from
communicating to demonstrating and participating?
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Point of View
Dare to Be Different
Being different is scary. In marketing, trying something different is really scary.
Nobody wants to be the marketer that messes up a multimillion-dollar brand. It’s
easier to play it safe, relying on what has worked before or for others. That must
be why I’ve often heard from clients that there is a certain way to advertise in
their category—for example, TV ads for men’s razors must start with a 10-second
story, continue with a 15-second product demo, and end with a 5-second joke.
“This is how we must advertise in order to succeed,” they say.
Alex Hernandez-Brun
Senior Business Analyst,
Millward Brown
But copying from a template often leads to
mediocrity. In today’s world, it’s ads that are
different that stand out and really capture
attention, and it’s ads that capture attention
that have a chance to be remembered, to convey
brand impressions, and to deliver messages.
Therefore, ads that are different are most likely
to build brands.
[email protected]
Difference Makes a Difference
When the Dos Equis Most Interesting Man campaign in the United States
launched in 2006, most beer ads featured attractive women being won over
by feckless young men (with the help of beer) or relied on sophomoric humor.
Often they included both. Instead of trying to mimic the success of category
leaders, Dos Equis launched a campaign built around the exploits of the
rugged yet sophisticated “Most Interesting Man in the World,” an aspirational
figure for young beer drinkers who embodied the phrase “women want to
be with him, men want to be like him.” Replacing the traditional frat boy
jokes with over-the-top but not quite unbelievable snapshots of the most
interesting man’s life, such as the grainy black-and-white footage of him
arm wrestling Fidel Castro, the ads were unlike anything else in the beer
category. They captured viewers’ attention and made them remember the
brand. Sales of Dos Equis doubled in the four years following the launch,
and the campaign has since won numerous awards, including a 2009 Gold
Effie and a 2010 Bronze Cannes Lion.
U by Kotex, a feminine care brand launched in the United States in 2010,
has also leveraged different advertising to great success. Advertising in this
category has traditionally relied on euphemistic images of young women
riding horses and performing gymnastics routines; the reality of menstruation
is not openly discussed. In its first U.S. spot, U by Kotex parodied these ads
in a young woman’s description of how her period makes her feel. “It makes
me feel really pure … I like to twirl, maybe in slow motion, and I do it in my
white spandex.”
The campaign, which targeted women aged 14 to 22, then proceeded to
talk frankly about menstrual cycles and feminine care products. The 2013
U by Kotex campaign, called Generation Know, pushes boundaries even
further, debunking myths, speaking matter-of-factly about menstruation,
and addressing questions many young women have. As a result of this
straightforward, plain-speaking approach, the brand has claimed a sizeable
7 percent share of the $2.6 billion feminine care category after only three
years.
Difference Is Involving
Looking beyond these two examples, we observe that in the United States,
ads that are seen as different from other advertising have significantly higher
levels of involvement. Thus they have a stronger ability to get noticed by
consumers. But this isn’t just the case in the United States; it’s something
we see across the globe. As Table 1 shows for countries around the world,
involvement is consistently stronger for ads that are different. People pay
attention to the unexpected.
Table 1
Ads That Are Different Are More Involving
Involvement Scores, Indexed on Average Level of
Difference*
Bottom Tertile
Top Tertile
82
150
United States
United Kingdom
78
Russia
85
126
73
Germany
124
122
88
France
121
93
China
109
96
Brazil
104
Source: Millward Brown, 2013
*Difference tertiles defined by endorsement of top box of
Difference scale: “It’s very different from other ads in CATEGORY.”
Difference Creates Enjoyment
In the context of TV, a medium we look to for entertainment, offering people
something enjoyable is a good way to get their attention. In general, the
more enjoyable an ad is, the more likely it is to be remembered. And we have
found that ads that are different also tend to be more enjoyable to watch;
what makes them different often enhances them in other ways as well. They
may be laugh-out-loud funny, such as the ads in the Old Spice The Man Your
Man Could Smell Like campaign, which featured non sequiturs and visual
humor.
They may be edgy, like Kmart’s “Ship My Pants” TV spot from early 2013,
which played up the “sounds-like” pun of “Ship My Pants” and garnered 13
million views on YouTube in its first week. Or they may be gripping, like
the famed Guinness “Surfer” ad from the UK, in which the drama of surfers
riding an enormous wave is enhanced by black-and-white footage, a pulsing
drumbeat, and images of mythical horses rising out of the water. (Incidentally,
the qualities of ads that are different—being laugh-out-loud funny, edgy, or
gripping—are the same qualities we observe in ads that go viral.)
Difference Builds Memorability and Effectiveness
Beyond being more involving and more enjoyable to watch, ads that are
different can offer another important advantage. The elements that make
them different can become strong brand cues. In the case of Dos Equis, phrases
like “he can speak Russian … in French” and “his blood smells like cologne”
are readily associated with the brand. We have found that ads that combine
strong branding, enjoyability, and involvement are best at generating TV ad
awareness for their brands. We measure this using our Awareness Index (AI).
Figure 1 shows the predicted AIs for 4926 U.S. ads in the Low, Medium, and
High difference groups.
Figure 1 — Awareness Index (Predicted)
Increases with Difference (4,926 U.S. Ads)
4
3
Low
5
Medium
High
Difference Tertiles (defined as on Table 1)
Established Brands Can Also Be Different
New or little-known brands have an advantage when it comes to creating
different advertising as they have little to lose and few existing consumers
to alienate. But that doesn’t mean it’s impossible for established brands to
create advertising that’s different or that they shouldn’t aim to do so.
A great example of an established brand leveraging different advertising
is the “Pinky” ad from Australia for the New South Wales Roads and Traffic
Authority (RTA). Safe-driving advertising across the world has traditionally
used scare tactics to frighten consumers into following traffic laws. But in
their 2007 “Pinky” commercial, Australia’s RTA did something different. The ad
showed young male drivers, full of swagger, speeding as they tried to show
off to women walking by. Unimpressed, the women wagged their pinkies to
suggest that the drivers were overcompensating for a lack of manhood. As
a former young male driver full of swagger, I know that’s a message I would
listen to! More importantly, it’s a message that stood out to drivers because
it was so different from what they expected to hear. The ad, behind a $2
million budget, is credited with saving $264 million in accident-related costs
and the lives of up to 56 people.
the Difference must fit the brand
It’s not enough, however, to just have advertising that’s different. In 2004,
the U.S. sandwich restaurant Quiznos started a TV campaign featuring the
“Spongmonkeys,” a pair of creepy, google-eyed hamster mutants singing
about Quiznos’ toasted subs. That was certainly different, but it wasn’t
appealing, and it did nothing to make consumers want to go to Quiznos. The
campaign was pulled within the year amidst declining sales and negative
reactions from customers and franchisees alike.
Different for the sake of being different doesn’t work. It’s ads that are different
yet still fit with their brands—ads that are appropriately different—that are
much more impactful in market. Table 2 shows the predicted Awareness
Index and Persuasion scores for “different” ads that have a low, medium, or
high degree of fit with their brands.
Table 2
AI (Predicted) and Persuasion Scores for
Different Ads, According to Degree of Fit*
4,926 U.S. Ads
Degree of Fit with Brand
Low
Medium
High
3
5
7
15
19
24
AI
Persuasion
Source: Millward Brown, 2013
*Fit tertiles defined by endorsement of top box of Brand Fit scale:
“How well does the ad fit in with how you think of BRAND?”
One brand that has successfully leveraged appropriately different advertising
time and time again is Apple. All of Apple’s advertising conveys the message
that the advertised product will help you do the things you love to do—and
this, in fact, is the meaningful difference that makes Apple so successful.
While competitive advertising focuses on technology, which is constantly
changing, Apple focuses on delivering an outstanding brand experience. As
a result, the brand’s iPod campaign from 2003 fits just as well with the brand
as their 2013 advertising for the iPhone 5C.
Break the Mold … with Care
Breaking the mold isn’t something that should be considered lightly or done
haphazardly, least of all when it comes to multimillion-dollar brands. First,
consider the strength of your brand and current advertising. Strong category
leaders with successful campaigns shouldn’t focus on creating something
different if what they’re doing is already working. But they do need to keep
an eye on what competitors are doing and be wary of and prepared for how
to deal with imitation.
Second, don’t lose sight of what your brand stands for. Unless you’re trying
to completely reinvent your brand, make sure you build on its legacy and its
meaningful difference. Make sure you also understand your market and the
type of advertising you can get away with without offending consumers.
Third, understand how consumers view advertising for your category.
Maybe a product demo is required, but the way you present that demo can
be different. Also, keep in mind that what you think of as a big change may
be too subtle for consumers to notice; don’t be afraid to be bold.
Lastly, give your creative team some freedom. Don’t put narrow boundaries
on what they can and can’t do. Make sure they understand your brand’s
heritage and consumers’ perceptions of your category and then turn them
loose.
Copy testing will help you understand if the bold efforts of your creative
team are working as intended or if the risks they have taken are reckless
ones. As we’ve seen, Link will show the positive impact of difference—but
it will also act as an early warning system if that difference is inappropriate.
Many advertisers develop effective formulas that they depend on for years.
But often, copying someone else’s template hinders as much as it helps.
So when your goal is to create advertising that will really get noticed, dare
to break the mold. Dare to throw out every convention you know about
advertising in your category. Dare to be different.
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PUBLISHED
ARTICLES
Ninety-Five
Per Cent Wrong
RESEARCHING THE INSTANT MEANING OF
BRANDS YIELDS A DIFFERENT PICTURE OF
CONSUMER CHOICE
By Graham Page,
Executive Vice-President, Millward Brown
I
t has become a mantra that cognitive science is challenging the
assumptions of our industry. It is, but not necessarily in the
way people assume.
The typical story is that breakthroughs in behavioural
economics, neuroscience and the study of heuristics have
debunked the idea of the ‘rational’ consumer. These suggest that we
think less than we believe we do and only engage our more effortful
(slow) processes when necessary. An often-cited ‘fact’ is that ‘95 per
cent of what the brain does is unconscious’, implying that 95 per cent
of brand decision-making is unconscious.
There are two problems with this. Firstly, few in the research or
marketing industry have ever believed in a dispassionate consumer.
In addition, the idea that 95 per cent of brand decision-making
is unconscious is every bit as wrong as the idea of an objective
consumer.
For a start, the figure is a hypothetical construct. It is impossible to
find scientific papers that evidence this number and while it is true
that a huge amount of the brain’s energy consumption is spent on
processes below our awareness, much of that is involved in biological
regulation and low-level sensory processing – which is not the same
as decision-making.
Furthermore, if the 95 per cent figure were true, then when we
measure brands using research tools that tap automatic, nonconscious processes directly, we would see a seething mass of
associations and responses. We now have such tools, and Millward
Brown has deployed them on hundreds of projects. What they show
is that many brands evoke modest emotional responses (typically
neutral or mildly positive) and just a handful of ideas or responses,
unless people engage in effortful thought. Similarly, when automatic
responses to brands are modelled against behaviour, the degree of
influence is way below the 95 per cent we’d expect if that proportion
of decision-making were driven by unconscious processes. In the case
of budget airlines, intuitive reactions to carriers were shown to have
very little relationship with behaviour, as people were more willing to
override their instinctive responses for the sake of a good deal. For a
low-risk choice like social media usage, intuitive responses to brands
such as Twitter did show a significant relationship with behaviour,
but only to the same degree as explicit attitudes.
These findings are consistent with the cognitive science that sparked
the whole discussion. The core of the science on ‘fast’ and ‘slow’
thinking is that both contribute to decision-making, with fast
processes such as instinctive emotional reactions framing the slower
ones. Where possible we will use our fast processes for decisionmaking, but our slower processes can and do override them when we
are motivated to do so or when our instinctive responses are vague or
muted.
This is the nub of the challenge for brands, because the evidence
is that many brands lack the instant meaning that would allow
consumers to make quick, effortless decisions that they are wired to
favour. This makes them vulnerable to competitors that do create an
instantly relevant and positive meaning, and a key objective for brand
managers is to create not just rich brand equity, but equity that is
immediately accessible.
The fact that many brands lack a deep meaning for consumers also
has implications for research.
There is a tacit assumption in the industry evidenced by ideas such
as the iceberg metaphor, that it’s there to dig beneath the surface
to reveal the rich, subconscious world of brands. A better metaphor
is that of construction. Most research methods encourage people to
reflect on their faint brand associations and to see what they can
build from them, there and then. Do those ideas mean the brand has a
particular personality, or will work better on a particular dimension?
This perspective has important implications for research:
1. We need to remember that even if respondents are trying to focus on
functional or factual information, they cannot help but be swayed by their
automatic reactions. Many research questions encourage more effortful
thought than people will commit in reality when making brand decisions.
This is still valuable – if people don’t register the intended brand meaning
or advertising message when they think about it, then they certainly won’t
in the real world. Similarly, brand values, personalities, archetypes and so
on are valuable aspirations for a business to rally around in marketing a
brand, so understanding if people can construct those ideas for the brand
when they think about it has value in measuring progress towards those
goals.
2. We need to focus more on gist. It is the gist of a brand that counts for fast
decisions. Research questions are likely to be much more nuanced than the
associations consumers have in their minds, so looking across metrics at
the gist of the answers will give a more meaningful insight than worrying
about whether people differentiated between minutiae like ‘tastes
delicious’ and ‘has a satisfying taste’. Millward Brown has introduced
questions that focus on brand and advertising gist rather than detail for
just this reason.
3. We need to complement established measures with approaches that
isolate the instant meaning of brands and campaigns, so we can properly
understand the nature and impact of brands’ automatic associations.
Fortunately the industry is now adopting such measures extensively,
and Millward Brown’s own work routinely includes:
• Measures of the instinctive emotional responses that will frame
real-world decisions.
• Reaction time-based measures of intuitive associations, which
enable us to understand whether brands have the real-world
meaning their owners intend.
• Automated facial coding of viewers’ responses to advertising (used
on more than 2,500 ads by Millward Brown at the time of writing).
Integrating reflective thought and measures of instant meaning is
key. By including both, we can empirically determine the importance
of each. In the Twitter example, measuring fast responses enabled
us to improve our prediction of behaviour by 50 per cent. With facial
coding, we can improve the ability of Link survey measures to predict
ad sales effectiveness by up to 30 per cent.
Marketers should strive to give brands instant meaning, and as
brand and ad researchers, we should be clearer about our established
metrics, which often measure what brands might be if people think
about them. By taking a more measured view of the science and
integrating the tools to isolate fast thinking directly, we can not only
understand the true influence of fast thinking, but provide more
realistic brand guidance. That’s something to build on.
First published in the October, 2013 edition of Marketing Week, www.marketingweek.com
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Develop Great Creative
for Your Video Ads and
Maximize Viral Potential
By Ann Green,
Senior Partner, Client Solutions and Innovation, Millward Brown
T
he strength of creative is an important factor that will
influence whether an ad will go viral. To identify the
creative criteria for viral success, Millward Brown
recently conducted a research study on the power of viral
video ads. We identified 500 ads copy tested, across seven
countries, using our Link™ solution. All ads were also
available on YouTube.
We used YouTube’s publicly available viewing information as our
measure of viral success. To create a “views per week measure”, the
number of views (aggregated across all posted versions of an ad)
was divided by the number of weeks the ad had been posted. This
measure of viral spread ensured a fair comparison regardless of how
long the ads had been on YouTube. To help predict in-market viral
viewing, we took measures from Millward Brown’s Link copy testing
solutions to build a Creative Viral Potential score.
So what creative factors drive viral viewing? Millward Brown
identified the following measures that related to views per week:
Enjoyment: The industry can consistently demonstrate the
importance of liking and/or enjoyment to an ad’s performance. This
also holds true when it comes to whether or not an ad is likely to go
viral.
Active Involvement: Viral ads are not those that simply “wash over”
the viewer - they tend to have qualities that make the viewer lean in
and take an active role.
Distinctiveness: Being distinctive is very important. To succeed
virally, ads need to stand out from all other ads, not just from those
of direct competitors.
Buzz: The quality of an ad makes someone want to send the ad to
someone else. The act of passing an ad on contains a consequential
element — personal endorsement. In sending a viral ad along, the
sender is saying that he or she thinks it’s good. Sending a bad viral
ad is rather like telling a joke that falls flat — embarrassing for all
involved.
Millward Brown’s research also identified four elements of strong
viral ads, summarized below, using the acronym LEGS.
Laugh out loud funny: Four of the top five videos we researched overindexed in terms of being funny. We learned the sender of a viral ad
often needs to be sure the recipient will laugh when they see it. The
likelihood of this is gauged against the sender’s own reaction to the
video. Generating a wry smile is not sufficient for a video to be sent
on.
Edgy: Best described as the type of video most people wouldn’t
show to their mother, these films operate on the edge of social
acceptability. They might be viewed by some as offensive, shocking,
sick, or unpleasant. Importantly however, when they combine this
edginess with humor, the shock element is felt overall to be funny as
opposed to gratuitous.
Gripping: Finding a video to be gripping, engaging or involving isn’t
the same as enjoying the viewing experience. Not many would claim
to “enjoy” looking at a car crash, but the majority of people rubberneck when they pass an accident site. While very gripping videos
are not necessarily particularly enjoyable; very passive videos can
be extremely enjoyable. Importantly, both positive and negative
emotions can drive a consumer to be gripped by a video. The
research shows there is no guarantee a video that is very gripping
will be forwarded on - but a video that isn’t gripping is unlikely to
be passed along.
Sexual content: We chose not to include any particularly sexually
focused films in the research due to common decency and industry
codes of conduct. However, that is not to say we underestimate the
importance of sexual content as a motivator for forwarding a video
— particularly among young males.
The pursuit of an edgy or sexually focused viral video should not be
detrimental to a brand’s character or proposition. An ill-advised film
can damage brand equity, if it goes viral, because the brand has no
control over its longevity in the public eye. A semi-pornographic film
for many brands would detract from, rather than enhance, the brand
promise and position.
Working with leading marketers and agencies on Creative
Development, Millward Brown is often asked to help predict the
extent to which their ad will go viral. In the study, Millward Brown
set out to explore the main drivers of viral viewing, and what makes
people want to share? In reality, the chance of achieving a major
viral success is rather low. There are many factors that determine an
ad’s viral impact.
Here’s what we learned.
• Paid media in general has a role in viral success. YouTube videos with
paid advertising achieve far greater views than videos that are not
supported by paid placements. The ad itself may have appeared
on TV, at cinemas or in paid online video slots. Other media such
as posters or print can play a supporting role as well. PR can
have a major impact, first in seeing the ad appropriately among
opinion formers, and later in “fanning the flames” to ensure wider
awareness.
• Ads on YouTube’s home page generate 86% of all views
increasing expected views by over 600%.
• Holistic campaigns are more likely to achieve viral success. Executions
that are linked by a common theme or device seem to benefit from
being part of a campaign.
• Make your video easy to find. The name attached to an ad will
contribute to it being easy or difficult to find. Advertisers can
only control the name of the “official” versions of their videos,
but they should consider the implications of how they do this. An
intriguing name may help drive views among random surfers, but
a more obvious name may help increase views among searchers.
YouTube promotion ensures weaker ads achieve views - only the
very best start to catch up via natural viral.
There is a growing trend for brand managers to suggest or request a
viral campaign because “everyone else is doing it.” Before embarking
on a viral video project, marketers need to ask the question: Would
the film work on TV or in the cinema? If the answer is “no”, the ad
won’t fit any better when it’s watched on a PC or mobile device.
Media choice should always be driven by the communication
objective, and not the other way around.
Finally it should be acknowledged that, despite the analysis
presented above, there is still an element of luck involved. Some
campaigns will inspire mash-ups, spoof responses, re-edits and
other online chatter. At this point, you start to lose control of the
campaign, and things may take unexpected twists and turns, but
with luck, you could benefit from a massive viral surge in brand
interest.
First published October, 2013 www.millwardbrown.com
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From Tartan to Tablets: Apple
Stores Hire Further Blurs Lines
Between Fashion, Tech
By Oscar Yuan,
Vice President, Millward Brown Optimor
F
rom Google Glass to connected watches, to clothing
that monitors your activity levels, there’s been a lot of
conversation about the merging worlds of fashion and
technology. This week, Apple added to this dialog when
they named Angela Ahrendts to senior vice president
of retail and online stores. Coming from a remarkably
successful tenure as the CEO of Burberry, Ahrendts brings valuable
luxury fashion brand perspective and experience to the challenges
faced by Apple.
Under Ahrendts’ seven year reign, sales at Burberry more than
tripled and share price quadrupled. Her adept use of social media
and digital marketing transformed Burberry into the most connected
fashion brand in the world. Ahrendts also drove great success for
Burberry in China, an achievement that so far as eluded Apple.
Outside of simply growing sales, however, the decision to bring
Ahrendts aboard, combined with Apple’s earlier hire of Paul Deneve
of Yves Saint Laurent and Enrique Atienza, formerly of Levi’s, could
signal an intent to grow the Apple brand in a way more similar
to the great houses of fashion than to the great houses of Silicon
Valley model — shifting consumer choices from rational, technical
specifications to what the fashion houses understand: the most
intense relationships are built on passion and emotion — lust, even
— not rational benefits.
In an increasingly competitive and imitative market, with its retail
and product experience being emulated, and at lower price points,
Apple is seeking to differentiate from cheaper, copycat competitors,
and expand accessibility to a wider variety of markets — all while
maintaining a premium perception. Ahrendts is familiar with reenergizing brands and enhancing their premium potential. While
at Burberry, she turned around perceptions of the brand’s classic
plaid from tired and tacky to a chic and luxurious fashion statement,
through more selective use of the pattern and a carefully cultivated
in-store experience.
But Ahrendts’ new role is hardly the first move Apple has made
in blurring the lines between fashion and technology. Apple has
already led the way with projects like the Nike Fuelband, which
merged Apple’s smart technology with a wearable and functional
workout tool. Other brands are following suit. From the funky
brand identity of Beats headphones to new, nearly science-fiction
innovations in fabric and design that cross fashion runways around
the world, what we wear in our everyday lives will increasingly be
combined with the technology we use. Certainly, if anyone is going
be the vanguard of changing our daily interactions with technology,
it’s Apple.
Barely a month ago, in fact, Apple partnered with Burberry to launch
the iPhone 5s at a Burberry fashion show, and all photos were taken
with the new iSight camera. Christopher Bailey, Burberry’s Chief
Creative Officer and second in command to Ahrendts, commented,
“This collaboration celebrates our relationship and shared
foundation in design and craftsmanship. We have a mutual passion
for creating beautiful products and unlocking emotive experience
through technology, which has made it intensely exciting to explore
the capabilities of the iPhone 5s…We’re inspired by what this
could mean for the future as we continue to explore the merging of
physical and digital experiences.”
Ahrendts noted the similarities between Apple and Burberry earlier,
when, in a 2010 profile in The Wall Street Journal Magazine she
remarked, “If I look to any company as a model, it’s Apple. They’re
a brilliant design company working to create a lifestyle, and that’s
the way I see [Burberry].” And while many Silicon Valley analysts are
surprised by Ahrendts’ appointment, from a brand perspective, it is
clear that in her new position the apple will not have fallen far from
the tree.
First published in the October 18, 2013 edition of Wired, www.wired.com
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Five Tips to Help Take
Advantage of the “Olympic
Effect”
Young people believe the Olympics added a new dimension of
friendliness, opportunity, hope and sense of community in London,
writes Firefly Millward Brown
So how can marketers and brand managers capitalise on this
newfound sense of optimism, and take advantage of the socalled “Olympic effect” among young people today?
1. Positive mental attitude
Young people are more ambitious than ever, and they understand
more than ever that success in their careers and life comes only
from hard work, commitment and a positive attitude in today’s
highly competitive global market. This attitude was highlighted at
the Olympics last year, and made a lasting impression.
There is potential for this new positive stance to be used as a big
idea by marketers, according to Anne Collins, research director
at Firefly Millward Brown: “Marketers need to capitalise on these
emerging post-recession values. There’s a palpable hunger to
achieve amongst this generation that was never as strident with
Generation Y.”
2. Old-fashioned values
In this complex digital world, there is also a longing for oldfashioned values. Young people appreciate the sociability, closeness,
mutual respect and belonging highlighted during the Olympics,
and desire more of the ‘physical’ in their lives today. Marketers can
benefit from having a strong focus on the ‘experiential’, as part of
their multimedia-campaigns.
“Brands can do this in different ways – Coca Cola’s ‘Share A Coke’
campaign this summer is a brilliant example of bringing young
people together, and giving them a way to show love, care and
respect for family and friends,” says Collins.
“It has been a tremendously successful campaign which supports
the importance placed on ‘old-fashioned’ values and interactions by
young people.”
3. The physical vs. the digital
Emphasis on the ‘physical place’ rather than the ‘digital space’ is
becoming more important for young people. The report suggests
that there is a strong affection for, and pride, in London and its
iconic landmarks. Individual areas have also taken on their own
unique sense of style and identity, like energetic Brixton and the
hipster vibe of East London. This represents an opportunity for
brands in terms of alignment with places or physical areas.
“One example of this is O2. Following in the footsteps of Apple,
O2 has recently created physical workshop spaces in-store where
young people can meet, learn or lounge; these forward-thinking
technology brands who are visionaries for the ‘digital future’ also
know the importance of ‘keeping it real’ for the young adults,”
says Collins.
4. A more liberal approach
Young people are far more liberal than their parents’ generation.
They embrace diversity, and understand they can be enriched
by learning about and experiencing different cultures, different
nationalities, people and places.
Their liberal stance was highlighted at the time of the Olympics
last year where they enjoyed the coming together of different
people and nationalities to support teams and celebrate sporting
achievement. In the build-up to the World Cup in 2014 the global
unity and connections young people desire represents a significant
opportunity for marketers who target young people.
5. Frame of reference
Young people’s frames of reference have been extended. They are
born into ‘globalisation’, and personal ambition extends beyond
London and the UK. They want success at work, and to gain a
diverse range of life experiences along the way. Brands must get to
know young people better, and those that best reflect their needs
and aspirations will reap rewards in the future.
Adidas has managed to do this well, capitalising on its sponsorship
of the Olympics; its collaboration with designer of the moment Stella McCartney, choosing young, rising, sporting personalities as
ambassadors, and various initiatives aimed at young people with
passion at the core reaped great results. Adidas raised its game, its
global credentials and ‘cool’ factor at the same time.
First published in the Novemeber 13, 2013 edition of Research-Live, www.research-live.com
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KNOWLEDGE
POINTS
KNOWLEDGE
POINT
What Are the Benefits
of Celebrity-Based
Campaigns?
CELEBRITIES ARE USED IN ADVERTISING AROUND THE WORLD. THE
RIGHT CELEBRITY, USED IN THE RIGHT WAY, CAN UNDOUBTEDLY
BE A POWERFUL BRAND ASSET. BUT USING A CELEBRITY IS NO
GUARANTEE OF EFFECTIVE ADVERTISING; OVERALL, THERE’S VERY
LITTLE DIFFERENCE BETWEEN THE PERFORMANCE OF ADS WITH
CELEBRITIES VERSUS THOSE WITHOUT. AND THERE ARE PITFALLS
TO USING CELEBRITIES. TO GAUGE WHETHER A CELEBRITY IS RIGHT
FOR YOUR BRAND, YOU NEED TO ESTABLISH WHETHER THEY ARE
KNOWN, WHETHER THEY ARE LIKED, AND WHAT THEY STAND FOR,
AMONG YOUR TARGET AUDIENCE.
WHO USES CELEBRITIES?
The use of celebrities in advertising varies enormously around the
world. It’s highest in Japan and Korea, where over 40 percent of TV ads
feature celebrities, and lowest in Ukraine, Sweden, and Canada, where
the proportion is under 5 percent. It is 10 percent in the U.S., and 12
percent in the UK.
There is no pattern of celebrity use by category, as this comparison of
U.S., UK and China data shows.
There is no consistent pattern by category
on use of celebrity in ads
% of total ads
UK
USA
Personal Care
CHINA
14
Drink
14
12
Food
14
10
Telecommunications
8
Appliances
7
Apparel
7
Technology
7
Household
6
Automobiles
6
Medical
32
52
4
23
16
7
11
24
32
46
11
9
2
10
10
1
18
4
11
The type of celebrity used varies a lot by region. In Asia Pacific, around
half of ads featuring celebrities use film stars; this drops to 12 percent
in Latin America. The second most popular type of celebrity is TV
presenters; this is at 35 percent in Latin America, but drops to 10 percent
in Africa. It is also apparent that in Asia, local celebrities are far more likely
to be used, whereas in the U.S. the split between local v international
celebrities is closer to 50:50 (probably because U.S. celebrities are more
likely to be internationally known).
Use of local v international celebrities varies by country
Japan
13
87
Korea
15
85
China
66
34
Thailand
92
8
India
82
18
Philippines
14
86
Indonesia
16
84
Brazil
64
36
Russia
47
53
United Kingdom
49
51
USA
49
51
International
Local
Overall, there is virtually no difference in performance between ads
featuring local or international celebrities. China makes the greatest
use of international celebrities in Asia; while foreign celebrities lack
familiarity, particularly in tertiary cities, they are more likely to be viewed
as different and as trend-setters.
ARE THEY EFFECTIVE?
Celebrity-based campaigns can be very effective.
In the U.S., one client had used a celebrity in some of its ads over
a ten year period, and wanted to know if they should continue the
relationship. Our analysis showed that the ads featuring the celebrity
performed better on key measures than those without the celebrity.
The celebrity had also become a strong branding device. We were able
to estimate that the celebrity was worth over $5 million per year to the
client. Since the contract cost considerably less than this, the client
continued the relationship.
In the UK, Barclaycard used the popular comedian Rowan Atkinson
during the 1990s in a highly successful campaign. It was hugely enjoyed
and well recalled, and it communicated the intended messages.
Barclaycard’s share of new cardholders rose from 15 percent to 25
percent in five years.
However, there is very little difference overall between the performance
on most key measures of ads with celebrities versus those without;
this includes enjoyment and involvement. Some countries, notably
the U.S., Chile, Australia and China (except Beijing), find celebrity ads
more involving; but in others, particularly where celebrity ads are more
common, this is not the case.
Overall, branding levels tend to be similar.
Celebrities make very little difference overall
on most key measures
Average global percentiles
Ads with Celebrities
Ads without Celebrities
Enjoyment:
56
54
Involvement:
53
49
Branding:
53
50
(7407)
(39,313)
(8468)
(48,274)
(7178)
(37,864)
Finished Films
However, for some long running campaigns, particular celebrities have,
over time, become synonymous with the brand: for example, William
Shatner and Priceline in the U.S., Gary Lineker and Walkers in the UK,
Carina Lau and the cosmetic brand SK-II in China. This example shows
the gradual build of one celebrity brand cue over 15 ads.
In Japan, however, branding scores are slightly lower for ads with
celebrities — possibly due to the celebrities endorsing too many brands.
Celebrities can wear in as brand cues
What happened in the advert to help you know that it was for Brand X?
Celebrity brand cue %
M
77
C
D
51
50
G
58
F
E
42
40
B
N
74
L
66
O
81
K
55
H
I
48 47
J
43
34
A
5
Base:
(164) (117) (81)
(126) (102) (85)
(67)
(96) (109) (161) (154) (149) (161) (128) (126)
15 executions over time
Ads featuring celebrities are no more likely to be seen as conveying
new, relevant, credible news than others; so, unsurprisingly, they are
no more persuasive than other ads.
THREE KEY QUESTIONS FOR EFFECTIVE USE OF CELEBRITIES
Given that using a celebrity does not guarantee a successful campaign,
what are the guidelines for getting it right? We’d suggest there are three
key questions you need to answer.
Who are they?
Where the celebrity is central to the core idea, it’s important to establish
how well known they are among your target audience. In the U.S., a
lipstick brand was launched using a British model. Among those who
recognized her, communication, enjoyment and purchase intent were
much stronger.
Those who recognized the celebrity expressed
stronger purchase intent
Recognized
Definitely would buy /
probably would buy for
the price of $4.97
Didn’t recognize
74%
56%
However, less than a quarter of the audience recognized her, severely
limiting the effectiveness of the campaign.
Conversely, advertising can make celebrities. In the UK, Halifax bank
used staff members in its ads — one of whom, Howard Brown, became
a celebrity in his own right. Also in the UK, Nescafé’s Gold Blend coffee
campaign of the 1990s created a long running series, following the
slow build of a romance. When the couple first kissed, it made the front
page of The Sun, the biggest selling UK newspaper, making ‘celebrities’
of fictional characters.
There may be merits to running a campaign which works even if the
celebrity is not recognized; but it is useful to be clear how important
the celebrity is in your campaign.
Are they liked?
While it isn’t essential for a celebrity to be liked, this can have a significant
impact on emotional response to an ad, as the example below shows.
Enjoyment of ad
Likeability of a celebrity can significantly
impact on emotional response
Like celebrity %
Don’t like celebrity %
Enjoy a lot
13
N/A
Quite enjoy
34
6
48
Won’t mind
38
29
Won’t enjoy much
Won’t enjoy at all
Mean score: (+5 to +1)
11
4
20
3.42
2.37
A snack food client in Turkey wanted to explore whether to use
celebrities in their campaign, and researched two ads with us, both
with and without celebrities. The presence of a (much liked) celebrity
made a slight difference to the first ad, improving its enjoyment and
impact; but the celebrity in the second ad was found pretentious and
arrogant, and had almost no effect on the ad’s performance; both
versions performed poorly.
In particular the likability of the celebrity needs to be assessed among
the target audience. In one project for a cereal brand in the UK we
asked about celebrities considered positive role models. One particular
TV and radio presenter was rated highly; but this ranking was driven by
the 40+ age group. When we researched an animatic version of an ad
for the brand featuring him, he was dismissed by the younger target
respondents as being too old and old fashioned. In the ad he played
with a younger woman’s hair; a scene which was found disturbing and
uncomfortable. The ad was not progressed.
What do they represent?
You also need to understand how well the celebrity fits with the brand, or
with where you want to take the brand. When the celebrity is perceived
to be appropriate, communication can be enhanced.
The ‘right fit’ celebrity can enhance communication
Find celebrity Don’t find celebrity
Difference
appropriate % appropriate %
79
Are made from natural products
27
41
68
Suitable for the whole family
20
59
30
31
Ideal for everyday meals
61
Are new and different
61
Create tasty meals without effort
60
Are high quality
56
21
35
Combination of different textures
51
21
30
Taste great/delicious
42
Moving with the times
40
40
21
19
41
18
24
26
14
The choice of the right celebrity for the campaign is important.
One automotive client in India came to us asking for advice on the
right celebrity to use to represent the brand values and aspirations.
We explored which celebrities were best known across India, which
were most popular on Twitter and Facebook, and how many brands
they already endorsed. But we also explored their personalities, to
establish which was the best fit with the brand. The client adopted
our recommendation, and saw an almost immediate improvement on
brand health and sales.
POTENTIAL PITFALLS
Unlike, for example, an animated character, celebrities are human, and
subject to human failings. So there are a number of ways in which a
celebrity could become a liability to the brand. These are discussed in
our Point of View paper, “Celebrity Power: Can Less Be More?”.
The Chinese athlete Liu Xiang was in the London Olympics, but had
apparently disguised an injury; the injury flared up and he had to pull
out. Public opinion turned against him for his perceived dishonesty,
and still hasn’t fully recovered.
Perceptions of Liu Xiang in China
20
18
‘Dishonest’ - Liu Xiang
16
Average
14
12
10
8
6
4
2
London Olympics 2012
M
ar
1
Ap 2
r1
2
M
ay
12
Ju
n
12
Ju
l1
Au 2
g
12
Se
p
1
O 2
ct
1
Ja 3
n
1
Fe 3
b
1
M 3
ar
1
Ap 3
r1
M 3
ay
13
Ju
n
13
0
Data Source: Millward Brown CelebrityZ 2012-2013 Personality Results
In addition, there is the risk of the celebrity becoming the hero of
the ad, rather than the brand. A new campaign was developed for a
tea brand in India, featuring popular movie actors. We researched, in
animatic form, two versions of the ads; one with the celebrity, and one
without. The research showed that, in the versions with the celebrities,
the message takeout was weaker; the celebrities were ‘drowning out’
the communication. And while the celebrities were intended to help
gain attention, the versions without celebrities were just as impactful.
The client went ahead and filmed and aired versions without celebrities.
But experience suggests that this is more an issue of ad structure than
the fame of the celebrity. Testimonial ads, for example, with their clear
focus on the brand, tend not to suffer this problem. But the celebrity
needs to come across as likeable and genuine, or the endorsement
may lack credibility.
Alternatively, the celebrity may just be a poor choice. In the UK, two ads
were tested for a brand. They had identical scripts, but one featured a
genuine former pop star, while the other featured an actor playing the
part of an old pop star. The version with the actor was preferred. The
celebrity was considered inappropriate, and weakened the credibility of
the ad.
The celebrity weakened credibility
What was put across about the brand was believable
With celebrity %
Agree Strongly
27
Agree slightly
28
Neither/nor
16
Without celebrity %
27
44
UK average %
26
36
19
15
10
9
Disagree slightly
14
Disagree strongly
13
9
6
Mean score: (+5 to +1)
3.43
3.77
3.60
Base:
(99)
(108)
(>278 ads)
Share
SCREEN
AGNOSTICISM
–
VIDEO
1
BECOMES A FLUID MEDIUM
The notion of marketing activity being online or offline or mobile will cease to
be a meaningful debate in 2014.
“Screen Agnosticism” refers to both the way consumers watch video content
and the mindset marketers need to adopt when planning video campaigns.
Marketers will move beyond preoccupations with classifying the full array of
screen sizes and the appropriateness of content for each. Instead, they will
adopt an agnostic viewpoint where the benefit of maximizing audience has
primacy over optimization by channel. Meanwhile audiences will consume
video content by whichever means is most convenient in a given moment.
Content is king and the screen is simply the most convenient window through
which to view it.
This might be long-form content on mobiles or short-form content on
connected TVs. It could mean beginning an episode of your favorite series on
your mobile during your evening commute, switching to the TV when you
get home, and then deciding to watch the next episode on your tablet in bed.
Similarly you may receive a great piece of viral content on your laptop at work,
which you then show to your partner via your smart TV later that evening.
The availability of video content and the technology to view across devices
have coincided to create the conditions required for this behavior change to
become the norm over the next 12 months. Products like Chromecast and
AppleTV make syncing content across screens effortless, and YouTube now
remembers where logged-in users left off when they restart a video at a later
point in time, on any device. At the same time, ads are seamlessly optimized
for the screen size at the point of exposure—essentially a YouTube ad
campaign running as online video and mobile video can also appear on TV—
the screen is simply dictated by consumer behavior.
So for marketers, the implications are clear. If, when you create a video ad or a
piece of video content, you picture in your mind a nuclear family sitting on the
couch watching a TV, you’re misunderstanding the multitude of ways video
content will be consumed globally in 2014.
This will necessitate an ever greater focus on research to understand exposure
across devices in order to plan the optimal utilization of media in an agnostic
way and deliver strong creative assets efficiently to video audiences.
Rob Valsler, Head of Media, Millward Brown Singapore
Changing Channels recommendation
Find out how your target audience consume video across
screens and plan against that.
2 MICRO-VIDEO MULTIPLIES –
CHALLENGING MARKETERS
TO KEEP PACE
In 2013, the internet exploded with a new trend: micro-video. There are now
many websites that allow users to upload short videos, typically shot on a
mobile phone. The trend started with Vine, a Twitter service allowing for sixsecond looping videos. However, competitors were quick off the mark and
include Instagram video (15 seconds), MixBit (16 seconds), Tumblr GIFs (short
animated images, similar to Vine) and numerous smaller players like Viddy,
Qwiki, Tout and Klip.
In 2014, this trend will continue with more video uploads across a fragmented
set of platforms. This phenomenon is likely to continue to be largely mobile
focused, but already desktop Vine aggregators are becoming popular and
Vine content is being shared on established platforms such as YouTube. For
the short term, micro-video will continue to be dominated by Vine, Tumblr
and Instagram–Vine due to the fact that it largely popularized the format,
Instagram due to its already massive user base, and Tumblr GIFs due to the
extreme resurgence in the format’s popularity.
Micro-video offers the promise of more engagement than traditional online
video for brands, with branded Vines four times more likely to be shared than
traditional online video. This makes the trend an enticing one for those brands
willing to leap in feet first. These short formats, however, demand a focus on
creativity coupled with simplicity, a trend that may well transcend micro-video
and start to influence more traditional online video and perhaps even TV
advertising. Marketers may be tempted towards the longer timeframe offered
by Instagram, since this is closer to a traditional length execution, but this
risks not taking advantage of the unique audience that both Vine and Tumblr
provide. At the moment, the bulk of the branded content will be shared virally
as opposed to paid promotion, but if the history of advertising on platforms
such as Twitter and YouTube repeats, then within a few years commercialized
advertising on these platforms is a near certainty.
The popularity of micro-video ads, coupled with the ease with which
the content can transcend the mobile, tablet, PC and even TV gap, could
eventually result in micro-video becoming the most portable video format
across screens.
Brands should remember that the existence of a platform does not necessitate
brand presence. Rather, brands must make fundamental decisions about
where they should be active, how appropriate these formats are to their target
consumers, and whether they can adequately pursue a micro-video strategy
before embarking in this direction. Getting the creative and the tone right
within these restricted formats is not straightforward, but many more brands
will no doubt follow the leads of Coca-Cola, Oreo and Red Bull to experiment
further in this space.
Jarrod Payne, Associate Account Director, Millward Brown South Africa
Changing Channels recommendation
Actively explore experimental micro-video opportunities,
learn from early-adopter brands.
3 THE BREAKTHROUGH OF
WEARABLE SCREENS
Hot on the heels of rising tablet and smartphone ownership, wearable
technology looks set to be the next big thing that will start to break into the
mainstream in 2014.
The health and fitness market will continue to play a key role in bringing
wearable technology closer to consumers; many mobile health wearables such
as Nike+ and the Fitbit tracker are already available and growing rapidly.
Smartwatches such as those from Pebble and Omate have recently been
joined by offers from Sony and Samsung’s Galaxy Gear; Apple’s longrumored “iWatch” may well appear in 2014 too. Tackling things from a
slightly different viewpoint, Google Glass is also likely to expand its restricted
“Explorer Program” to a wider public launch in 2014. The collective ingenuity,
competitiveness and marketing muscle of these firms means that 2014 could
see the start of a wearable tech explosion. Wearable devices look set to evolve
from “nice to have” tech to “something I want” and then to “something I need.”
Wearables will transform the way we interact with our existing screens since
they enable users to read instant messages, take photos, listen to music
or conduct a search, all without reaching for their smartphone. No single
device has yet nailed this perfectly and some safety and privacy concerns are
emerging, but wearables are getting ever smarter and improving iteratively.
With virtually limitless applications to a number of verticals, the wearable
technology market will represent a huge value proposition for many
ecosystem members, from manufacturers to app developers through to
advertisers.
Wearable technology will offer unique media opportunities for brands to
captivate target audiences and build meaningful differentiation. Brands could
create a device of their own such as Nissan’s Nismo watch or work through
friendly apps to enhance the consumer experience. The challenge will be
developing a deep understanding of what consumers want from these new
wearable screens so that brands can deliver something useful and relevant to
their existing proposition
Adriana Sousa, Head of Digital & Media, Latin America, Millward Brown
Changing Channels recommendation
Consider whether a wearable presence is a good opportunity for
your brand to build a meaningful point of differentiation.
4 MULTI-SCREEN BIG DATA
CONNECTIONS ENHANCE
EFFECTIVENESS INSIGHT
Consumer use of “screens” as a primary media vehicle is not new news.
Television has been the mainstay for years to reach the broadest number of
consumers. But think of the recent explosion of other screen-based devices;
we interact with screens in taxis, airplanes, billboards, ATM machines, and
video games as accepted and expected parts of our daily information flow.
Screen-based mobile devices such as tablets and smartphones are becoming
universal, adding a social, local, mobile, and highly personal component to
our consumption of messages on screens. For example, my new mobile device
describes itself as “Life Companion” when switched on and, given how many
times I feel compelled to check it each day, it is an apt description.
In this “always on” world of interaction with many media, the importance of
understanding each consumer encounter with a brand grows dramatically.
This understanding requires a 360 lens, since no interaction is isolated from all
the others. They continue throughout the day, across various moments we all
experience, but are often delivered in personal ways.
From a marketing effectiveness perspective, this means that granularity is
the key to insights and decisions. Marketers need windows into the specifics
of each consumer’s interactions with each screen for each brand. However,
marketers struggle because the digitized data that sits behind this is not yet
fully linked across screens. The perfect single-source data set with all of an
individual’s exposures, attitudes and actions is yet to exist. However, in the
era of Big Data, this is changing. Consider that the totality of a household’s
exposure to advertising on TV is recorded by set-top boxes, and viewers’
mobile devices are being equipped to listen to TVs via audio fingerprinting.
These mobile devices already capture numerous interactions from social
media and can be leveraged for short attitudinal surveys. Those survey
responses are in turn being linked to panels that are tied to other consumer
behaviors and choices (specific sales, traffic patterns, etc.).
In 2014, the technology to tie together the pieces of the multi-screen puzzle
will be leveraged on a much wider scale than in the past. The central question
will remain: How are all brand encounters uniquely and synergistically
impacting sales and brand perceptions? The ability to passively tie together
multi-screen interactions will gradually enhance our ability to answer this
question.
Bill Pink, Senior Partner, Millward Brown USA
Changing Channels recommendation
Investigate how emerging multi-screen datasets can improve
your marketing effectiveness research.
5 MULTI-SCREEN MINIMALISM
DELIVERS MUCH NEEDED
TRANQUILITY
Less is more. In a multi-screen world, we focus on various stimuli in quick
succession. More often than not, we use “Fast Thinking” to make quick
decisions about what we will interact with, taking only 1/20 of a second to
make decisions on the appeal of digital stimuli. Brands that design their
content with a direct and to-the-point approach will tend to succeed.
Minimalist designs such as Apple’s icons and the tiles of Windows 8 help us
focus on specific information and have been designed to work well across
multiple screens. Other brands will also increasingly adopt a minimalist multiscreen mindset as they architect their future brand aesthetic.
In the latest installment of the James Bond series (Skyfall), Daniel Craig’s
character has an encounter with his new, younger Quartermaster (“Q” played
by Ben Whishaw). They meet in the National Gallery and admire a painting
together before Q hands over a gun and a radio. Compared to the more
exciting gadgets of yesteryear (jetpacks and wristwatches with lasers), these
offerings seem benign and dull. Yet later on in the film, they prove invaluable.
Our own eyetracking results for digital display ads suggest that just one
appealing visual is enough to attract attention. That attention is retained more
by ads with a crisp, clear appearance that require minimal cognitive load. A
brand such as Dove (and its Real Beauty campaign) has exactly the right kind
of visual identity to benefit from this learning and deliver strong impact across
online, TV, and mobile screens (as well as in print and outdoor media).
The 2013 BrandZ Top 50 Most Valuable Latin American Brands positions
Corona (a beer from Mexico) as the top brand in the region. Most people have
seen Corona advertisements; sunny beach backdrop, sounds of waves gently
crashing into each other, the bottle front and center; a sense of tranquility—
minimalism at its finest! This approach continues to transfer quite seamlessly
across screens. Brands that interface with their consumers with this in mind,
will most likely capture their attention faster and retain it for longer. With
so many screens to look at and so many competing distractions, instant
recognition via minimalist design is increasingly the aim of great brands.
Jorge Bueso, Senior Research Executive - Innovations,
Millward Brown Honduras
Changing Channels recommendation
Review whether your brand’s advertising aesthetic is appropriate
for a multi-screen world.
6 MESHING, STACKING AND
SHIFTING GIVE BIRTH TO A
NEW ERA OF MULTI-SCREEN
ADVERTISING
Multi-screen device usage is creating a new landscape for content
consumption that can be simultaneous or sequential and can be driven by
related or unrelated content.
“Meshing” is simultaneous usage of multiple devices for related content. For
example, this could be watching the cooking channel on TV and searching
for the recipe online. Marketers will tap into this by ensuring their advertising
content is an extension of the programming content. Messages will be
relevant, fluid, and related. Real-time social marketing is a specific application
of meshing that requires brands to be ready to respond immediately to social
media comments and will be increasingly expected as more brands seek to be
part of the social TV conversation. Oreo’s “You can still dunk in the dark” tweet
during the 2013 Super Bowl blackout set a bar that others will now seek to
surpass.
“Stacking” is simultaneous usage of multiple devices for unrelated content.
For example, this could be checking social media while a football game is on
TV. Marketers will tap into this by understanding that unrelated distractions
can sometimes be just as welcome as an extension of what’s happening on TV.
Brands with no connection whatsoever to sports may reach out online to the
long-suffering partners of sports nuts during games.
“Shifting” is sequential usage of multiple devices for related content. For
example, this could be browsing for airline tickets initially via a smartphone
but completing the purchase via a laptop. Marketers will tap into this
by ensuring the consumer experience is consistent across all platforms.
Responsive web design (adapting web content to every device—mobile,
tablet, PC) will become non-negotiable in 2014. Added to this, being able to
track the consumer’s path to purchase across devices will be key, so that there
is no break in the brand experience journey.
The final piece of the multi-screen media puzzle is sequential, non-related
content. The same person reads news on their smartphone during their
evening commute, and then tunes in to a TV drama at home—two completely
unrelated events, but still two opportunities for a single brand to contact
that consumer. Marketers will tap into these opportunities via deep audience
understanding. The exact multi-screen sequences will be hard to predict, but
precise targeting and consistency of messaging will deliver success.
All of these multi-screen behaviors offer brands new opportunities for
connecting with people if they can understand and navigate the landscape.
Monique Leech, Director of Digital Solutions,
Millward Brown South Africa
Changing Channels recommendation
Assess the multi-screen media consumption of your target
consumers, and then tailor your marketing to best exploit these
new behaviors.
7 AT LAST… TRADITIONAL
CHANNEL INSIGHTS AND
MULTI-SCREEN DIGITAL
INSIGHTS TIE THE KNOT
2014 will be the year in which we truly start to understand the consumer
path to purchase across all off-line and online touch points. The concept of
the omni-channel consumer is well understood, with businesses striving to
ensure a seamless consumer experience across all touch points, including
brick-and-mortar stores, call center interactions, and direct mail outreach
as well as screen-based personal computer browsing, mobile device usage,
and TV advertising exposure. Although consumers seamlessly move across
these channels, many businesses have yet to set up systems to optimize the
consumer experience across them. This situation is exacerbated by the fact
that market research to help organizations understand these channels and
their interplay has been disjointed at best.
There was a time not long ago when organizations had little visibility
into the tactics that actually bore fruit. The industry responded to this
challenge by devising smart but not entirely satisfying ways to measure
success. The emergence of a digitally-enabled world promised an eminently
more measurable environment. However, there were now two disparate
measurement realms: the traditional non-digital realm and the digital realm.
Organizations had their traditional research and their digital research, with
little overlap between them. Then the mobile revolution rapidly changed
consumer behavior, compounding the measurement challenges and
introducing yet another silo of market intelligence.
The good news is that the market research industry is responding. Market
intelligence vendors are standardizing, aligning, and integrating measurement
systems and metrics. 2014 will be the year in which a standardized omnichannel view of consumer behavior will become a reality, allowing
organizations to truly understand the path to purchase for their consumers.
For instance, we already know that 32% of flat-panel TV shoppers will
consult online reviews before visiting a store, 72% of shoppers want to see
TVs in a store before considering a purchase, and that 53% of shoppers will
subsequently visit that retailer’s website. And soon we will be able to go
deeper. We will have integrated data to understand the role of each online
and offline touch point on the consumer path to purchase, across all channels
and all digital devices. We will then be able to segment that path to purchase
data to derive valuable insights to power both strategic and tactical marketing
investments.
Conor O’Mahony, Vice President of Products, Millward Brown Digital
Changing Channels recommendation
Embrace new research approaches which provide integrated
insight rather than treating data from digital screens as a
separate silo.
8 SOCIAL TV’S PROMISE IS
TIGHTLY COORDINATED
TARGETING ACROSS
CHANNELS AND SCREENS
Consumers are spending more time in front of the TV with digital and mobile
devices, and social media is the main way people are interacting with TV
content. In the past year, it’s become clear that social TV is, for all intents and
purposes, Twitter TV. There will be other platforms, like Facebook or other
niche networks, that will now amplify their presence in the space and may
expand the arena; however, Twitter will continue to define social TV in the
immediate future.
One way advertisers are already taking advantage of this is via TV ads with
hashtags and promoted tweets using that same hashtag. Another way is via
branded tweets targeted at the chatter around a specific TV show. In 2014,
the social TV opportunity will be expanded as Twitter introduces additional
audience-based targeting opportunities. Based on their data connecting TV
to social media usage on the second screen, Twitter will be able to define likeminded communities organized around TV viewing habits. Eventually this will
lead to more sophisticated psychographic targeting when those audiences are
further segmented based on other interests and habits.
For brands that are title sponsors of a show or an event, this means they will be
able to continue targeting their show-specific audience long after the event
itself, and not necessarily just when those people are tweeting or reading
about show-specific content. This puts less pressure on real-time “meshing”
of TV and a second screen, as brands can also target these audiences at other
potentially less distracting times. It also opens up opportunities for advertisers
to participate in social TV in a broader way, by replicating a TV target audience
in the Twittersphere—for example, by targeting people interested in all kinds
of sports programming, not just those watching one specific sports show.
In this way, social TV marketing will evolve from being just a narrative to
becoming part of an audience’s lifestyle.
Anne Czernek, Senior Research Analyst, Millward Brown Digital
Changing Channels recommendation
Align TV media buying with Twitter promotional efforts to
maximize your social TV audience.
9 SMARTPHONES ARE THE
ONLY SCREEN THAT COUNTS
FOR THE CONNECTED YOUTH
OF TODAY
Smartphones are at the hub of young consumers’ lives. Mobile use is deeply
personal for this generation, and the bulk of their living, learning, and buying
will shift to smartphones even as they continue to multi-task across their other
digital devices. Because of this, youth-focused brands will lead the field in
providing a seamless multi-screen experience across devices in order to retain
attention and to drive brand consumption among this audience.
These marketers will need to keep in mind that the younger generation is very
fickle. Even on the smartphone, they move constantly between social media
sites, micro blogs, internet browsers, and instant messaging applications.
Only the most innovative, forward-thinking and relevant marketing, offers
and products will succeed in holding their attention. Creating a “buzz” in their
digital sphere and being able to connect with them at their level, in a language
and style that is youth-centric, will be crucial—especially for niche brands that
depend on word-of-mouth referrals.
Marketing efforts will therefore focus on multi-screen strategies that primarily
reach the younger generation via social media with something exciting and
fun, since these social networks are rapidly becoming the platforms for all their
information-seeking and decision-making. A brand that can “befriend them”
will in turn be assured of loyal brand ambassadors who endorse and broadcast
their choice to their world. These brands will also be perceived to be more
credible.
Constant innovation will be key in 2014 since the youth of today are attracted
to game changers as well as trendy and fashion-forward brands. Therefore,
successful youth-targeted mobile ads will be noticeably different from
conventional TV ads or even online ads, in order to demonstrate that the
brand is on-trend and up to date.
Rakesh Kumar, Head of Africa - Middle East - Asia Pacific,
Firefly Millward Brown
Changing Channels recommendation
Youth-targeted brands should adopt a mobile–first marketing
approach. This should likely have a heavy social emphasis and be
innovative, nimble and fashion-focused.
10 VIDEO BUDGETS CONTINUE
TO SHIFT FROM TV TO
MULTI-SCREEN
It is clear that consumers now live in a multi-screen environment, where TV
consumption is being supplemented by ever more time spent viewing other
screens. Adapting to this change remains a huge challenge to marketers,
especially those big advertisers who historically relied on mass TV media.
Marketers want to follow and communicate with consumers as they journey
across multiple screens, but some still have concerns about whether laptop,
tablet, and smartphone screens are large enough or delivering high enough
video quality to ensure good advertising attention and effect.
Our evidence suggests these concerns are unfounded and that appropriate
budget allocation across screens will increase ROI. One recent Millward Brown
study in China found that transferring 40% of the TV budget to other screens
increased total reach by 20% and reduced investment required by 30%.
Evidence such as this will continue to drive growth in online video advertising,
especially pre-roll, during 2014.
As marketers increasingly plan for multi-screen video success, we will see
many interconnected developments. More video advertising will be created
to work well across all screens, and not just optimized for TV. Organizations
will restructure as they realize that TV and digital media buying can no longer
be split. Many multi-screen video strategies will be defined by a focus on
optimizing cost-effective reach. To enable this, more use will be made of
unified media measurement currencies (e.g. TV and Internet GRPs) as well
as multi-media reach-based optimization tools. Last, but by no means least,
further effectiveness learning about the roles of different screens in building
specific brand associations will prove the value of multi-screen strategies and
will also be used to improve future campaign performance.
Peking Tan, Director of Research and Development, Millward Brown
Changing Channels recommendation
An appropriate video budget allocation across screens will
increase ROI. Use new planning and effectiveness tools to inform
your transition from TV to multi-screen.
11 DIGITAL OUTDOOR BLOWS UP
THE IDEA OF A SIMPLE SCREEN
More than ever before, our lives are filled with colorful glowing rectangular
screens that show us anything from revolutions in Cairo to recipes for kale, all
in an instant. Marketers are obsessed with the four screens—TV, PC, tablet,
smartphone—and how to get their messages across via these platforms. But,
before that conundrum is solved, the very question itself may be changing.
Technological innovations are taking the traditional screen beyond the TV, PC,
tablet, and phone and onto gadgets from glasses to watches to clothing—and
don’t forget elevators and taxis and bike shares. The screen as we know it is
changing into something we may barely recognize. Now, beyond our multiscreen strategy, we must answer the question: “How do we market across
clothing, wearable devices, and LED light-up cars?”
Those who thought that Google Glass was innovative because it could project
a message literally in front of the wearer’s eyes will be astounded to see some
of the platforms that will be coming in the next year: clothing woven with
flexible LED thread and flexible processors built in that can deliver messages
and capture data (Nike is already experimenting with this), advertising infused
with heat sensors to market ice cream on a hot day (as was done in London),
and LED-covered taxis that geo-locate to deliver messages relevant to the
neighborhood it is passing through. The very idea of a simple screen is being
blown up.
For marketers, the challenge now becomes: “How do I create and deliver a
message that is constantly contextually relevant and what data do I need to
have that message evolve?” An added challenge is the question: “How do I
ensure that the creative is even more appealing, given the proliferation of
messages is exponential?”
Now is the time to start thinking about these questions, before you see
someone on the street with a T-shirt that flashes an ad for your competitor
whenever they walk by your store.
Catie Williams, Analyst, Millward Brown USA
Changing Channels recommendation
Don’t get obsessed with the four screens. Think creatively about
the evolving digital outdoor landscape and its potential to
deliver arresting and powerful marketing “firsts”.
12 SUCCESS WILL NOT GO TO
THOSE WHO FOCUS ON
SCREENS ALONE
Before digital came along, many marketers almost exclusively obsessed about
TV as if it was the only touch point that mattered in brand marketing terms.
Many now risk swapping one obsession for another by focusing on “multiscreen” alone. However, the most successful marketers will be the ones that
implement truly integrated multi-channel strategies that stretch well beyond
“screen” media.
In truth this narrow mindset has in part been a product of the inadequacies
of the approaches used to evaluate multi-channel performance. However,
the advent of more sophisticated evaluation methodologies such as our
own CrossMedia Research shine a clearer light on the truths of integrated
marketing performance. The most telling facts are that:
We have found that nearly 40% of campaign impacts derive from true multichannel synergies – by this we mean 1+1=3 style media multiplier effects,
where consumers are more persuaded by the brand’s message if they
encounter it in more than one media.
Often the biggest synergies arise between screen and non-screen media, such
as Posters, Print and especially Point of Sale.
Across our global CrossMedia database the single most impactful brandbuilding medium per dollar spent is magazines – and other non-screen media
have also held their own against screen media in this respect.
All this has happened despite the explosion of digital (or “screen”) media
options across the globe. Screen media do perform well within our CrossMedia
studies, but we are sure that marketers who think more holistically than
“screens” alone, and who implement truly integrated multi-channel strategies
will be the biggest winners in 2014.
James Galpin, Media Director, Africa - Middle East - Asia Pacific,
Millward Brown
Changing Channels recommendation
Consider the role your multi-screen media plays in the overall
channel mix. People don’t yet spend their entire lives staring at
screens (though it may sometimes feel that way!).
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ARGENTINA
Rising Tides: Consumption
and Inflation
In recent years, Argentina has managed to sustain the growth of its
economic activity. Characterized by strong consumption there are certain
industries, such as the automotive and technological (LED TVs, mobile
phones and other appliances) that have performed particularly well.
By Martín Schijvarg,
Millward Brown, Argentina
C
ompared to the global context of economic stagnation in the
United States and in several European countries, Argentina
has managed to maintain employment rates and the social
development funds designed to improve them, including the
‘Plan Trabajar’, ‘Jefes y Jefas de Hogar’ and the ‘Universal Child
Allowance’. An important feature of the Argentinean economy
and approach to employment in various sectors remains collective bargaining
(for example over workers’ pay and conditions). In many cases, this has created
agreements at – or even higher than – the inflation rate, which has exceeded
20% annually over the past five years. (Note that the gap between this figure
and INDEC officiala figures of 10% annual inflation is very pronounced). The
government has tried to address the sustained increase in the cost of living by
controlling prices, with varying results depending on the type of goods.
Higher consumption levels have forced Argentina to import more and
more energy and gas to meet the growing demand. This has generated
strong growth in imports and in order to strike a positive trade balance, the
government has restricted imports of many products. Earlier this year it also
announced that the tax on credit and debit card purchases made abroad would
rise from 15% to 20%.
Another issue the government has been tackling is the capital leakage
caused by the flight to the dollar (a common Argentine response to economic
uncertainty). Since 2011, the purchasing of dollars has been restricted to certain
commercial activities, leading to a 50% increase of the parallel dollar rate (also
know as the ‘blue dollar’) this year. This has severely damaged the construction
industry in particular, since properties are quoted in dollars and currency
disparity between the official and parallel market creates tension, as some
sellers want to reap dollars from the sale and buyers face difficulty in obtaining
them.
Argentinean Brand Value
Roberto de Napoli
BrandAnalytics Associate
Argentinean brands have experienced a very big drop in the BrandZ™ Top 50
Most Valuable Latin American Brand Ranking 2013, losing almost half of their
value (43%) with a fall from US$4.7 billion to a mere US$2.7 billion.
2012
Beer 7%
Financial Institutions 4%
2013
Beer 22%
Financial Institutions 5%
Energy 66%
Communication Providers 23%
Energy 48%
Communication Providers 25%
Argentinean Brand Value % Change by Sector
-28% Energy
9% Communication Providers
206% Beer
34% Financial Institutions
overall brand value
change 2012-2013
-43%
+
Source:
BrandAnalytics
BRAZIL
What Brazilian MacroEconomics Mean For Brands
Any plans for strategic development of local or global brands within
Brazil must recognize the major demographic, social, economic,
cultural and political trends that affect consumption patterns, and
the changes that are occurring within them. Here we consider some of
the key factors that are shaping the Brazilian consumer profile today.
By Aurora Yasuda,
Business Development Director, Millward Brown Brazil
The altered age pyramid
Improved quality of life has increased the average life expectancy of the
Brazilian population. This, combined with the fact that the large contingent
born between 1950 and 1960 – ‘the baby boomer generation’ – has now
reached maturity and has now begun to change the age structure of the
population.
The over 65s population represents the highest growth, and may well exceed
4% year-on-year between 2025 and 2030. Meanwhile, the growth rate of the 0
to 14-year-old population has been declining in absolute value from 1990 to
2000. This is due to families having fewer children, even among lower classes
(and despite the fact that the infant mortality rate has also shown a downward
trend).
In 2008, 0 to 14-year-olds represented 26% of the total population and the
over 65s accounted for 6%. The projection for 2050 shows a reversal: children
will represent 13% while the over-65s are expected to exceed 22% of the
population. The value of ‘pester power’ will perhaps be sidelined for brands
by the growing importance of the more considered approach of the older
consumer.
Changes in the make-up of the family unit
In a more open society with greater tolerance and acceptance of separation and
divorce, new family compositions and household profiles arise and significantly
affect consumption patterns:
• Single-parent families (households with one adult, usually mothers living
with their children).
• Large families where the children return to their parents’ home with their
own children and receive help from grandparents to raise them.
• Blended families – couples in their second or third marriage where their
children from previous marriages all live together with them.
A collision between consumerism and indebtedness
With economic stability and a steadier employment rate, Brazil experienced
a phase of increased consumption, giving many of the population access to
consumer goods that they once believed to be beyond their reach. However,
the perils of easy credit and high interest rates led to an indebted population
that was unable to make ends meet, generating a very high default rate. The
indebtedness rate has more than doubled in eight years according to Central
Bank – from 18% in 2005 to about 43% now.
This indebtedness is already affecting the decision-making process for the
purchasing of staples; it may well result in a trade-off where the strongest
brands earn the loyalty of consumers by offering the best value combined with
an emotional reward.
The formalization of domestic work increases household
costs
For a long time, the employment circumstances of many domestic workers
were characterized by high informality with limited access to social rights.
However, starting this year, this segment formalized its working relationship
with access to labor rights from other categories. Thus, the cost for maintaining
maids, nannies, elderly caregivers, drivers, caretakers and so on has substantially
increased, forcing families into new agreements and arrangements. The impact
of this on disposable income – for both employee and employer – may yet to be
fully felt.
Adoption of global consumption patterns, driven by
technology
As elsewhere across the globe, Brazil has seen the growth of e-commerce
and online shopping; the penetration rates of tablets, smartphones and
social networking are also rapidly increasing. This window on the world has
strengthened the presence of global brands, but it is the brands that fulfill the
mantra of ‘glocalization’ that are at an advantage. Consumers engage easily with
brands that reflect or are part of the local culture.
In the face of these major and ongoing changes, brands have greater
challenges and responsibilities. Brazil remains a market of great opportunities
but to capitalize upon them, brands must consistently deliver something
beyond the product or service itself. That ‘something’ must be differentiated
enough to attract the consumer’s interest, and meaningful enough to merit
their engagement and loyalty.
CHILE
Chilean Consumers
Make Their Voices
Heard
In Chile, the growing participation and empowerment of
consumers is a hot topic. In fact, consumer complaints are
becoming more frequent and have evolved from simple criticism
to organized actions. Consumers have become more clear and
direct in demanding their rights in general, as well as their
rights to information.
By Marcela Pérez de Arce,
Client Service Director, Millward Brown Chile
T
opics of complaint have changed. Whereas previously, criticism
tended to centre on retail, and later banking, now there is a return
to issues of mass consumption and especially food.
This phenomenon has found resonance in the media, generating
a proliferation of TV programs dedicated to denouncing breaches,
not of civil or human rights, but of consumer rights. The media itself has given
rise to a need for new regulations of consumer issues in Chile. As a result, in
the second part of this year, a new law will be enacted to regulate nutritional
labeling.
A clear sign of the strength and impact of consumers’ increased organizational
capacity is the government’s recent creation of agencies like SERNAC (Servicio
Nacional del Consumidor - National Consumers Service, a Government
institution) on finance which protects consumers’ rights.
How are brands reacting to this new context of consumer participation?
Insufficiently, it seems. Brands haven’t redefined their relationship with
consumers, who are now clearly social actors – as seen especially clearly in
online social networks. In Chile, social networks still represent the fastest
growing platform for participation and organization, it’s where consumers
express themselves most clearly and fully. But, brands have not yet grasped
the fact that the demand coming from these ‘new consumers’ is for a more
horizontal and candid relationship. Instead, brands limit their use of social
networks to two areas: promotional advertising and complaint departments.
Similarly, brands apparently have misunderstood or ignored the demand for
more transparency. Brand managers seem to believe that the more horizontal,
candid approach will leave them vulnerable. However, the transparency
consumers want doesn’t imply a larger quantity of information, but rather more
sincerity and honesty, a relationship built around dialogue, not monologue.
Consumers seem to be saying, “Don’t leave me in the dark. And when you do
provide information, don’t insult my intelligence.” Today’s consumers demand
two things: plain talk, and to be informed about how problems will be resolved.
This demand for transparency doesn’t necessarily mean a desire for more data
or more detail about aspects that don’t interest consumers. They just want
to be leveled with. Two recent cases exemplify the fact. One study revealed
that packaged bread labeled ‘light’ provides more calories than the regular,
unlabelled marraqueta (a traditional Chilean type of baguette). Another study
showed that olive oil is not always as beneficial to health as people have been
led to believe.
So, consumer mistrust is on the rise. Brands make and break promises or are
vague and insincere in their communications. Consumers themselves are
questioning regulations – not just product quality itself, but the actual norms
regulating that quality. They are focusing on the distinction between what’s
legal and what’s legitimate. This is especially evident in the case of health
insurance and retirement funds, where consumer organizations currently have
over eighty thousand petitions for legal recourse pending.
In the light of this trend, the telecommunications industry has moved a step
ahead by establishing self-regulation; something other industries have failed to
do. They changed their language and stopped talking about volume in terms
of number of megabytes (which by the way, they were not really providing)
and responded to consumers’ new status, proactively heading off potential
problems before they could arise. The most recent example regards call centers:
the day after a news item appeared denouncing irregularities, SUBTEL simply
stopped all sales by phone. The company didn’t wait for an investigation, but
ended the problem almost instantly.
Another example that speaks of sincerity is H&M’s arrival in Chile with a
very publicized promise of fair price for fashion; a promise the company has
apparently been successful in keeping. H&M is an international brand that
probably has experience in these issues, and knows how to relate to consumers
on their new terms. It has recognized that in a socially networked economy,
every individual is empowered to be either an advocate or ‘badvocate’ (critic) of
a brand. It’s clear that Chilean consumers are determined to exercise this power,
so brands must hasten to develop strategies to mitigate against its effects and
capitalize on its potential for good.
MEXICO
A Rich Brand Environment,
But Concentrated in a
Very Few Hands
With the country’s openness to international markets, its geographical
location, and the plethora of local options available, Mexican consumers
have historically been in touch with a wide array of brands. Furthermore,
this pool keeps growing as big international players realize consumers
in the country are brand oriented, savvy and willing to spend if the right
buttons are pushed.
By Fernando Alvarez Kuri,
Director of Millward Brown Optimor Mexico
F
rom beer to bakery, passing through financial institutions and
cement, Mexico’s BrandZTM Top 15 ranking illustrates the brand
richness in the country, showing also another crucial characteristic
of the Mexican market, which is that power is concentrated in a
very few hands. Tycoon Carlos Slim’s empire owns at least four
brands on the ranking (Telcel, Telmex, Inbursa and Sanborns);
Walmart’s Mexican branch, the largest Walmart operation of the world after that
of the US, owns two brands, including the most valuable retailer in the country
(Bodega Aurrerá and Superama); and Grupo Modelo, the largest brewer in
Mexico, appears in the ranking with two, including the one occupying the spot
as the most valuable brand (Corona).
Of all the categories included, one of the most dynamic has been retailing.
Historically, Mexico has developed a strong retail culture yet it has been
dominated by just a handful of local powerhouses such as Bodega Aurrerá,
Liverpool and Sanborns, and complemented by international retailers (namely
Inditex and its whole brand portfolio). But things have changed lately. China’s
entry into the World Trade Organization in 2001 has forced Mexico to lower its
tariffs for imports of said country, meaning that international players whose
production depends heavily on China and Southeast Asia are now considering
Mexico as an attractive market to enter. Some of these players include
heavyweights such as Gap, H&M and Forever 21 and their entry is forecasted to
have an important impact on the country’s retailing outlook, since local brands
have grown isolated, protected by the government’s past international trade
policies.
But apparel is far from being the only category that is suffering the effects of
past protectionist practices. Take for instance the Mexican furniture industry
which, by the end of the nineties, occupied third place by sales volume in the
world after the US and Italy, and which has been facing a hard scenario when
confronting imports from Brazil and China. Competitiveness in the country
is still an issue but, more and more, Mexican brands have started searching
for ways to overcome an increasingly attractive and thus challenging market,
taking advantage of their brand heritage as well as their position as locals.
The times they are a-changin’
Mexico may be traditional, but it is also open to the new: the country is one of
the region’s largest Internet markets and it is set to grow. Mexican consumers
spend more time online and doing more activities than they did in the past
(internauts in the country spending over four hours a day doing more than
three simultaneous activities). Nine out of ten Internet users in the country
use social media, thinking of it as the second most relevant media to obtain
information from (the first place being search engines); in fact, between
internauts, Internet is the most used and trusted media, surpassing public
and paid television, radio and print. In this scenario, mobile is key. 70% of the
46,600,000 users in the country navigate through mobile devices. Alongside
Mexico’s competition laws on telecoms, this has pushed the importance of
a few brands in the sector, namely gigantic Telcel, the second most valuable
brand in the country.
But telecoms are not the only category in Mexico in which competition is
an issue. Media is also an industry concentrated on a very few: only two
broadcasters, Televisa (third most valuable brand in Mexico) and TV Azteca,
hold most power in the market. Yet, competition laws in the country are set
to change. Aiming to increase Mexico’s competitiveness, the government is
progressively planning to open more and more sectors and industries. In the
case of media, the renewal of legislation is set to change the panorama swiftly,
opening up possibilities for new competitors – foreign satellite and cable
operators and maybe even one new broadcaster led by Carlos Slim – to try and
shape Mexican opinion.
With high penetration, TV is still seen as the key media to start marketing
activities with, but more and more, brands are changing their approach
towards it. The perceived ‘safety’ offered by this media has led to an important
stage of saturation: in 2012, there were 595 ads a month aired in primetime,
a huge change compared to 2005’s 462. Saturation has impacted ad
effectiveness, lowering scores on communication and increasing a sense of
glut and passiveness towards the message, according to Millward Brown’s
DynamicTrackingTM Database.
In this new context, to boost their marketing communication efforts, brands in
the country must take into consideration the consumer’s new relationship with
media, which goes far beyond just saturation. Mixed media consumption, the
search for more active participation as well as interesting shifts in preferences
will not only be the most basic challenges advertisers will have to face in
Mexico; they will have to create new ways of seeing, narrating and generating
experiences in an increasingly competitive market.
MEXICO
Mexico: A Country of
Increasing Contrasts
According to data from every single international
entity available, Latin America is the most unequal
region in the world in terms of income. Mexico, as
a key player, proves to be far from an exception to
the rule.
By Fernando Alvarez Kuri,
Director, Millward Brown Optimor Mexico
T
he Mexican economy has shown a positive trend on
macroeconomic variables, yet most of the country’s population
has failed to enjoy the benefits of this growth and stabilization.
The number of those living under the poverty line had risen
from 52.8 million in 2010 to 53.3 million by the end of 2012,
according to data from the country’s National Council of Social
Development Policy Evaluation (Coneval). Coneval’s data, however, shows
another interesting trend: despite this growth in poverty, extreme poverty
decreased from 2.6% to 2.4% in the same period. The dynamics of these
figures illustrate a part of Mexican reality, a country in which a huge part of the
population still lives under poverty lines but has increased its overall purchasing
power. Mexico’s GDP per capita, with a value of $9,741 (current US$) and having
grown 2.6% per annum from 2008 to 2012 according to the World Bank, places
the country as fifty-seventh; not far behind other major Latam economies such
as Argentina (51) and Brazil (53).
As with other Latin American nations, during the second half of the twentieth
century Mexico followed an economic model that aimed to industrialize the
country through the substitution of imports. This meant the development
of models based upon heavy subsidization, increased taxation, and highly
protectionist trade policies, leaving the country dependent upon a handful of
industries. In 1982, the system cracked, and Mexican authorities had to look
outward for the first time as a way to achieve development.
Nowadays, Mexico is open to international trade, even having once held the
position as the country with the most Free Trade Agreements in the world.
With a privileged geographic location, Mexico has proven to be a true ‘hinge
state’, holding strong commercial relations with both cultural and geographical
continuums to which it belongs: North America (namely under NAFTA) and
Latin America (under various FTAs and multilateral agreements such as the ones
held under the umbrella of the Latin American Integration Association, ALADI).
But Mexico has also gone far beyond its continent; it holds 14 FTAs across the
globe encompassing partners such as Japan, the European Union and the
European Free Trade Association.
With a huge population (surpassed in the region only by Brazil), its geographic
location (which has granted access to the US market and has influenced
consumption habits), as well as its numerous international agreements
(which have eased access to the country), Mexico has become an interesting
consumption market for brands from across the globe. Despite this openness,
the US remains the country’s biggest trading partner by far, holding more than
50% of its imports and almost 80% of its exports.
Swinging back to the past, looking up for the future
In 2012, Mexico held general elections, which included the ballot for a
new President of the Republic. The elections resulted in the return of the
PRI (Revolutionary Institutional Party) who had ruled the country without
interruption from 1929 to 2000 putting an end to the right wing PAN’s (National
Action Party) 12-year rule.
Incumbent Enrique Peña Nieto’s government inherited a country filled with
challenges: an economy which, because of its interdependence with the
American market, was hit following the 2009 World Financial Crisis, as well as
a society heavily struck by violence after the previous government’s attempts
to fight drug cartels, which resulted in more than 50,000 deaths across the
country.
Peña Nieto’s campaign platform focused heavily on economic matters and
structural challenges in the energy sector, the tax system and labor markets;
everything wrapped-up under what he called the ‘new-PRI’. The nature of such
platforms, as well as the proposed change in the way drug cartels were being
confronted, has had an effect on the way Mexico is perceived internationally
and has, somehow, renewed a sense of opportunity in the country. Peña Nieto
has aimed to unite political forces under what is called the Pacto por México
(Pact for Mexico) with varying degrees of success: violence is no longer the
central axis of the political discourse, even though it is still an everyday issue,
instead the discussion for structural reforms in key sectors have taken the
country’s political stage. Peña Nieto’s government has sketched some changes
that could potentially boost the country’s competitiveness, though there is still
a long way to go before any real effect of such measures is felt, especially since
they depend heavily on political will and fragile alliances that still have yet to be
fully forged.
PERU
A Particular Multiverse
(The Expression of the
Peruvian Identity)
Nowadays, the huge economic growth that Peru has experienced during
the last 15 years is not really the subject of debate. Nor is the reappearance of a middle class, (which almost disappeared during the
last part of the twentieth century), much of a talking point these days.
However, here we examine a number of other, more recent developments
– economic, behavioral and sociological – that are currently impacting
upon brands in Peru.
By Claudio Ortiz,
Managing Director, Millward Brown Peru
The successful ‘defense’ of some local companies
There are many examples of local companies that have managed to maintain a
strong position in the local market (despite the presence of some global giants),
and are also becoming global themselves.
This raises the question of why the ‘giants’ themselves have not been as
successful in this market as in the rest of the countries of this region. The
answer is that the Peruvian product breaks through by being supported by
local consumers (loyal to the local product) and by globalization; it has its own
models, which are now becoming successful abroad.
Intercity diversity
Besides the three strips, (the Coast, the Andes and the Jungle) huge differences
are to be seen in the consumption habits among the various cities of this
country (together with a certain homogeneity within each of them). Thus, you
could conclude that for many categories, the leading actor in one city could be
simply irrelevant in a nearby city.
The conducting of continual brand surveys in nearly 20 different cities may be a
key to success for companies which do not think of Latin America as a country
(with Buenos Aires or Mexico City as its capital) or of Peru as an ‘extension’ of
Lima.
The speed of changes in behavior and the importance of ‘word
of mouth’
Even in the past, you would see sudden changes in the market share of some
categories where the main driver was a word-of-mouth rumor: “It’s not good
anymore” or “It seems they changed its flavor” are phrases that could generate
significant behaviorial changes that were very hard to reverse. This, in a market
that is adapting rapidly to digital processes and virtual social networks, is an
increasingly important factor.
The millennials in Peru
Because the economic resurgence happened when today’s youngsters were
just babies, the generation gap appears to be even greater. For the first time,
Peru faces a transversal generational phenomenon. Young people with a
‘millennial’ attitude have grown up in a society that, despite still being poor, has
grown continuously – and this has happened in a context where parents raise
their kids trying to forget the past. The effects of this social revolution are just
beginning to be seen.
The new source of economic growth in Peru
Although the local economy is not growing as quickly as in the previous
decade, it remains healthy. A couple of years ago, this growth started to be
noticeable in the provinces. Now it is the turn of Arequipa, Huancayo, Trujillo
and Piura (among others) and it is clear that consumers in these cities are quite
different in regard to their behaviors, values and, a lot of the time, their choice
of brands.
What should brands do to engage with such a diverse consumer? What should
they do in this era of evolution, as we face the challenge of the digitalization of
brand communications? These perhaps are the key questions marketing will
have to answer in order to keep brands growing in this society.
Perspectives
PRODUCED BY
Miquet Humphreys, Baljit Thandi, Katie Pearce,
Ben Marshall, Dede Fitch
Global Communications and Marketing
Mike Agee, Lisa Parente, Michael Almon, Amanda Bruhn
Global Brand Marketing
Dominic Twose
Knowledge Management
www.millwardbrown.com
Millward Brown experts are available to speak globally. Please contact:
Global - Baljit Thandi
[email protected]
North America - Jamie Jones
[email protected]
Millward Brown © 2013