This post is by Matt Green, senior manager – global marketing procurement at the WFA.
Every now and then a new development comes along that changes everything. That was the case with wind, steam, the internal combustion engine and electricity. Now digital is radically reshaping the way we communicate, behave and do business.
We can already see that the emerging digital economy looks quite different to what existed before.
We now live in a world where Uber, the world's largest taxi company, owns no vehicles. Facebook, the world's most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world's largest accommodation provider, owns no real estate.
One of the longest-standing criticisms of advertising is its unhealthy fascination with youth. The majority of campaigns target the under 55s and a disproportionate number of brands focus on the under 35s.
Why are marketers so obsessed with targeting the young when older groups tend to be wealthier? According to the Daily Telegraph the over 50s account for 40% of the population but hold 80% of the wealth. Not only are older groups wealthier but they are also growing in number: data from nVision shows that there are 11m over 65s, an increase of 17% versus 2003.
Bob Hoffman, one of the most insightful advertising commentators, is scathing: "There is only one type of person confused enough [to ignore the over 50 market] – a marketing person".
This post is by José Carlos González-Hurtado, President of IRI International.
Even the most price-focused brands have come to understand the importance of customer loyalty in recent years. Michael O'Leary, CEO of Ryanair – once famous for its stark approach to customer service – recently credited its 25% profit increase to the "enhanced customer experience" it now offers. Discount supermarkets such as Aldi and Lidl have also realised that low prices are no longer enough to keep customers returning.
Many FMCG retailers still have a long way to go when it comes to making customer loyalty a priority, however. As margins are eroded, price wars break out and online retailers and discounters rise, growing sales by building and sustaining a base of loyal customers is critical. Yet retailers are failing to make use of the rich consumer data they have ready access to, applying it primarily to inform short-term price and promotions activities.
FMCG product manufacturers, on the other hand, have spent years building strategic, analytical and consumer-focused organisations, with the aim of long-term retention of their hard-won customers.
McArthur Wheeler’s infamous career as a bank robber was short-lived. He robbed two Pittsburgh banks on single day in 1995 – but didn’t keep the money for long. Rather than using a mask, as tradition dictates, he had the misguided idea of rubbing lemon juice on his face. He mistakenly believed that since it was used in invisible ink it would prevent security cameras from recording him. The police caught Wheeler on the day of the robbery and he was soon sentenced to 24 years in prison.
The story of the failed robbery is of interest to marketers as it inspired two Cornell psychologists, David Dunning and Justin Kruger, to come up with an important insight into human behaviour.
The psychologists wondered how such an inept criminal could think that he had the necessary skill to successfully evade capture? More importantly they decided to test whether this lack of self-knowledge was widespread. They recruited students to take a series of maths and grammar tests and then asked them to predict how well they would do compared to their peers.
The Atticus Awards went live on warc.com today. They are a selection of winning papers which are open exclusively to professionals working in WPP companies. They honour original marketing thinking.
I've surfaced a selection that I think deserve a special mention. Themes explored include best practices on successful brand migration across Western and Eastern markets, the cultural dynamics driving change in the global luxury market and a guide to effective mobile advertising.
This post is by Juha Koski, founder and MD of Madbid.com.
With the UK eCommerce sales reaching £38bn last year, there's stiff competition to find new ways to attract customers to a website or app, keep them engaged while there and ultimately to encourage their return.
To achieve this goal, increasing numbers of companies are turning to gamification as a way of creating a more entertaining and fun shopping experience than that offered by traditional eCommerce sites such as Amazon and eBay. The end goal is to better engage with and reward customers – and drive sales.
By contrast standard loyalty programs tend to focus on the very last stage of the consumer decision journey (i.e. the purchase) but crucially leave out and ignore everything that occurs beforehand.
This post is by Karl Weaver, CEO of Data2Decisions.
Change is a good thing. It forces us to think differently and re-establish the norms we take for granted. For the creative industry, data and technology has been an explosive catalyst for change, forcing the uncomfortable debate about whether data and creativity can work together to produce not only more effective, but more emotionally engaging creative work. There were early distractions as the data ‘geeks’ and creatives were pitted against each other, but thankfully the debate about whether data helps or hinders creativity is nearing completion. The two worlds have well and truly collided and we are finally ‘doing’ the collaboration we’ve been talking about for so long. The results so far have been very promising.
Take artificial intelligence for example, one of the most exciting, if not frightening collisions of data, creativity and technology we’ve seen yet. The technology has advanced in leaps and bounds throughout the past decade, with investors pouring millions into robotics companies now bringing interactive and emotionally intelligent robots to consumers on masse. Earlier this year, Robot Pepper, a humanoid robot with the emotional capacity to understand and communicate with humans went on sale in Japan. Creators Aldebaran Robotics sold out 1,000 units priced at £1,107 each in less than a minute. The demand is real and the possibilities endless.
Twenty-one years ago, the iconoclastic ad agency Howell Henry Chaldecott Lury produced a wonderfully provocative, and ahead of its time, pamphlet called Marketing At A Point of Change. I remember getting hold of a copy when it came out and it had a huge impact on how I thought about brands and marketing. It's a remarkably prescient read, arguing that in a more marketing literate world, brands need to become providers of experience rather than pronouncement. It's arguably more timely now than it was on its publication.
One of the central tenets of their argument is that "marketing will be replaced by 3D marketing, an experience that actively links the customers, the media and the brand… communication in the new world will include advertising, but it will no longer occupy centre stage. 'Brand experience' will replace broadcasting." Over the past decade, we have undoubtedly made strides as an industry towards this goal (although, arguably, progress that has not been far or fast enough). The design of experiences, increasingly, is the currency by which we measure marketing.
But on this 21st anniversary, I wonder if we should take the time to reflect on whether we have really begun to develop three-dimensional experiences? My observation on most work is that it feels remarkably one- or two-dimensional, especially when compared with the best non-marketing experiences that people engage with in their day-to-day lives. More often than not, we are either designing experiences that are no more than glorified sugar-coated messages (the bulk of the ad industry's integrated case studies wheeled out every year at Cannes) or, at the other extreme, soulless and dry experiences offered up by UX practitioners. Usability may be great, but it can also feel soul-crushingly dull. I wonder if it's time we began to think about designing experiences that come to life across different dimensions. For example, some of the best user experiences around at the moment - from Mailchimp to Slack - understand that form and function alone is not enough. Great user experiences require careful design around the voice, tone and language the experiences use. In many cases, these experiences are producing far more compelling and interesting writing than the great majority of advertising that is around today. And, without a doubt, they are producing a magnetic user experience by injecting dimensions beyond usability into the design of the experience.
This post is by Chris Pinner, sponsorship analyst at Synergy Sponsorship.
It' now only a matter of months before Rugby World Cup 2015 kicks-off and sponsors start to see a significant return on investment … at least that' what they hope.
If you already know whether their event sponsorship endeavors will be likened to a World Cup win or group-stage knockout then you can stop reading now. Otherwise, this 5-step guide to sponsorship event measurement should help you understand how to deliver, measure and evaluate a high-ROI event sponsorship of any scale.
So, using Rugby World Cup 2015 as a case study, let' outline an approach which could help…