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Exchange4Media Conclave Rahul Welde VP Media Unilever Asia AMET Slowdown New Rules ? The fallout from the slowdown • Wake-up call across the spectrum • Renewed focus on costs • Heightened competition • Back to basics Widespread impact on Media and Communication What are the new rules ? Are there any new Rules ? Two big themes will ride the future • Ideas • Accountability Accountability is in sharp focus • Return on marketing spends • Agency – Performance/Delivery • Role of Procurement is here to stay • Enhanced audits/controls Return on Marketing Spends – An ongoing challenge • Consumer value – topmost priority • Importance of In-store activation • Greater attention on Analytics • Balance between Efficiency and Effectiveness ? Agency Performance is under focus • Sharp challenge on legacy relationships – surfeit of pitches • Stronger linkage to delivery – the new norm – Agency performance – Brand performance Role of Procurement and Audits • Paramount to good governance – Witness = Prosecutor = Judge ?? • Relevant expertise or Bad cops Audits and role of procurement is here to stay ; Relevant stakeholders and not some evil witch(es) Great Ideas still rule Great Ideas still rule New rules/models of idea generation and execution New rules/models of idea generation and execution • Big ideas that travel • Non-linear process • Network approach • Crowd / Open Sourcing Big Ideas that travel AXE Wake Up Service • Integrated campaign leveraging new media • Activated on all channels to drive a sexy mobile application • Results • Awareness up to 80%, Cool/Stylish/Trendy 38% • Purchased more than twice up to 36.8% from 14.2% Network Approach Dove Ugly Betty - China Collaboration - agencies, producers and media Media Brand Creative PR Media Brand Creative Digital PR Mobiles Media Social Brand In-store Digital Content Creative Ideas Generation and Execution Non-linear processes • Life cycle of ideas – getting shorter • Number of ideas required – more • Speed of response - faster • Frequency of changes – very high Big changes in consumer landscape • Role of traditional media • Role of consumers – Word of Mouth – Social Media Requirement for communication Experience Dialogue Respond Deeper Content Interact Enriched Fulfilling Engage Experience Dialogue Respond Deeper Content Interact Enriched Fulfilling Engage Yesterday’s thinking Interruption Engagement Today’s imperative Interruption Engagement Conversations Marketing takes a day to learn……... Unfortunately it takes a lifetime to master - Philip Kotler Product Place Price Promotion Kotler’s Mix “Participation” is the 5th P of Marketing Traditional mass media is still a key influencer/channel Influence of Traditional Media is waning • Driven by digital / new media • Consumer perceptions and trust Too much advertising is annoying Turned off by the ads % agreeing 35 % 30 25 TV ads are annoying Enjoy ads as much as TV programmes 20 15 1989 1990 Source: TGI 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Growing fatigue and cynicism towards Marketing messages “Shooting down advertising has become a kind of sport” 98% of direct marketing is : Ignored……Annoying… …Wasteful……Insulting… …Irresponsible… Source: Jonathan Bond, Richard Kirshenbaum, ‘Under the Radar - Talking to Today’s Cynical Consumer’ Trust for consumers is highest Word of Mouth US 81% WW 70% Editorial 56% 55% Advertising 55% 59% 2006 eMarketer The degree of friendship remains the strongest driver of influence “Thinking about sources of information about products or services that you use, how much do you trust these sources?” (4 or 5 on a scale of 1 [don’t trust at all] to 5 [trust completely]) 65% 67% Opinion of family/friends/colleagues 39% 36% Information on a manufacturer's Web site 34% 36% Consumer review on a retailer's site 35% A review of the product or service in a newspaper or magazine or on TV 34% 30% 32% Information you find via a search engine 29% 31% Consumer review on a product review site 28% 27% Information on a retailer's Web site Information in online chat rooms or discussion boards/forums A review by a blogger/on a blog Email newsletters 19% 20% 17% 18% 14% 15% Base: 13,076 European online adults and youth Source: European Technographics® Media, Marketing, And Social Computing Online Survey Male Female Emergence of Social Media Why does social media matter? Exploding • Millions joining everyday 1.335,870,000 • Active Social Networking 308,692,000 • Billions of “Tweets”,”Likes” 350,000,000 1,177,128,000 • 400 Mln + Facebook users • 200 Mln + Mobile SN users Why does social media matter? Engaging • Avg time: 5hours:35min/month • 42% have uploaded a photo • 15% have uploaded a video • 12% have authored a blog • Communicating Online? – 33% use Facebook – 44% use eMail – 23% use other Social Tools Source: GroupM 2010 consolidated figures Enormous Influence Original Art Paperchase Stationeries in UK face outrage from Twitter users seeking Valentines Day boycott over possible copyright infringement Marketers may ignore social media…. ….But Social media will not ignore marketers Proliferating Consumer Content Worldwide users of consumer-generated content (millions) 2006 2007 2008 2009 2010 2011 Source: eMarketer 2007 128.0 147.5 169.7 195.7 225.8 253.6 “Participation” is the 5th P of Marketing Consumer participation is the big shift and an opportunity. Peperami - Redefining Marketing • Leading meat snack brand in UK • Targets young blokes and kids Redefining Marketing • Leveraging internet, social media, communities • Disruptive approach – no agency • “Crowd-sourcing” as a way of life • This is not UGC ! What is “Crowd-sourcing” • Distributed problem solving • Social media strategy where online users come together for a common interest or task, to exchange ideas, information and opinions. • Quickly disperse on completion – not in control of the marketer. How does “Crowd-sourcing” work ? What is Peperami’s disruptive approach • No advertising agency • Advertising brief farmed out on the internet • 1200 responses in 6 weeks • Idea shortlisted and converted into a campaign Benefits to Peperami • Access to many more ideas • Fraction of the conventional cost • Output as strong as conventional route • Open-sourcing for more engagement possibilities Ideas Factory ! Great Ideas still rule The rules are changing • Big ideas that travel • Non-linear process • Network approach • Crowd / Open Sourcing Summary Two big themes will ride the future • Ideas • Accountability