WARC Rankings 2023: Media 100 revealed

Cadbury is the number one brand for media excellence in this year’s WARC Media 100, in which Unilever tops the advertiser rankings, and EssenceMediacom leads the networks with its New York office the standout agency.

The WARC Media 100, an independent global benchmark celebrating advertising media excellence, is produced by combining the results of the industry’s most important global and regional creative award shows of 2022. “This year, the top campaigns aimed to inform and educate through strong media strategies,” says Amy Rodgers, head of WARC Creative. 

#1 Campaign for media: Break of Silence for INLesco by PHD San José

The most celebrated campaign for media of 2022 is ‘Break of Silence’ for INLesco, a sign-language school in Costa Rica. The country’s first silent TV commercial break, interpreted in sign language, was aired to raise awareness of the challenges facing the deaf community and drive change across the country. 

In second place is ‘Beyond the Surface – Liquid Billboard’, the world’s first swimmable billboard created by Havas Dubai for adidas, to encourage women in Dubai to feel comfortable swimming in public. Ranked third is ‘Versus’ for skincare brand SK-II for which EssenceMediacom Singapore / Grey Tokyo created an animated series in which each episode addressed social issues such as cyber trolling and beauty rules. 

#1 Agency for media: EssenceMediacom, New York 

Taking the top spot, EssenceMediacom New York has three campaigns ranked in the top 100, including campaigns for Ally and Walgreens, which took fourth and seventh place respectively. 

Joining the global Media 100 for the first time, Havas Dubai’s highly successful Liquid Billboard campaign for adidas pushed the agency straight into second place. PHD San José climbs to third, up from 25th last year. 

#1 Network for media: EssenceMediacom

Following a highly successful year, the newly merged media agency tops the network table with six agencies ranked in the top 50, four of which are in the top 10, including EssenceMediacom New York in the top spot. Overall, the network has 14 campaigns in the top 100.

PHD Worldwide moves up one place to claim second position with six agencies in the top 50 and nine campaigns in the top 100. IPG Mediabrands is in third, up from fourth last year, also with six agencies and 10 campaigns ranked.

#1 Holding Company for media: WPP

The top seven holding companies are the same as last year, with the top three remaining unchanged for the sixth year in a row. WPP sits comfortably at the top of the ranking, with four networks ranked in the top 10. Omnicom Group is in second place and Interpublic Group in third.

#1 Brand for media: Cadbury 

Cadbury, ranked 45th last year, takes top place for media excellence. The chocolate brand has four campaigns in the top 100 for the India and UK markets.

New to the global Media 100 ranking, SK-II comes in second with two campaigns listed, including its multi award-winning Versus campaign ranked third. Sportswear brand adidas has moved up to third place, from sixth last year.

#1 Advertiser for media: Unilever

Unilever tops the advertisers table for the fourth year in a row, with 15 brands contributing to its overall tally; two – Dove and Lifebuoy – were in the top 50. 

In second place, Mondelēz International has achieved its highest ever ranking in the Media 100, up from 20th last year. In third place is Anheuser-Busch InBev with four brands earning points: Corona, Vickys, Brahma and Carling Black Label.

#1 Country for creativity: USA

USA remains in first place for the sixth year in a row, with 14 campaigns in the top 100 having run in the country. Two made the top 10 – Fintropolis by Ally and Vaccine Readiness Model by Walgreens. 

The UK sits in second place for a third year. India moves up from fifth place to claim third. Germany has achieved its highest ever ranking, rising from 11th to fifth, and the United Arab Emirates is the most improved country, rising from 16th to sixth, its highest ranking in five years. 

The WARC Media 100 can be viewed in full here. It includes the world’s top 100 awarded campaigns for media, top 50 agencies, agency networks, brands, advertisers, countries and top holding companies. The campaigns, case studies, credits and subsequent insights reports are available to WARC Creative subscribers.

The WARC Creative 100, revealed recently, can be viewed here. The WARC Effective 100 will be announced on 21 March.

WARC Rankings 2023: Creative 100 revealed

Burger King is the number one brand for creativity, while WPP tops the holding company rankings, Ogilvy leads the networks, and Publicis Milan is the most creative individual agency in this year’s WARC Creative 100.

The WARC Creative 100, an independent global benchmark celebrating marketing’s creative excellence, is produced by combining the results of the industry’s most important global and regional creative award shows of 2022. A strong theme of promoting societal concerns through creativity is evident across the top campaigns. 

#1 Campaign for creativity: The Lost Class for Change The Ref by Leo Burnett Chicago

The most creatively celebrated campaign of 2022 is ‘The Lost Class’ for Change The Ref, created by Leo Burnett Chicago to raise awareness about mass shootings. A ceremony was held for the 3,044 high school students in the US who didn't graduate in 2021 due to tragically losing their lives to gun violence. 

#1 Agency for creativity: Publicis Milan 

Publicis Milan tops the table for the second year in a row with four campaigns for Heineken and one for Bottega Veneta among the top 100 campaigns.

Area 23, New York, jumped from 32nd last year to claim second place with four campaigns in the top 100 for a variety of brands covering different product categories. BETC Paris is in third place with three campaigns in the top 50.

#1 Network for creativity: Ogilvy

Ogilvy was the most awarded network for the third year in a row, with 40 different agencies contributing to its total, including five agencies in the top 50. Furthermore, it was responsible for 10 of the top 100 campaigns.

DDB Worldwide moves up one place to claim second position with four agencies in the top 50 and seven campaigns in the top 100. FCB, in third, is up from sixth, also with four agencies and nine campaigns ranked.

#1 Holding company for creativity: WPP

Up from second position last year, WPP returned to the top of the holding company table with seven networks in the top 50 and two networks in the top 10: Ogilvy and VMLY&R.

#1 Brand for creativity: Burger King 

For the fifth year in a row, Burger King tops the brand table. It has four campaigns ranked in the top 100 by three different agencies; the joint highest of any brand alongside Heineken, in second place, which also had four campaigns ranked. Google climbs up from 31st last year to claim third place.

#1 Advertiser for creativity: AB InBev

After topping the advertiser table for the first time last year, Anheuser-Busch InBev remains in first position. The brewing giant has three brands in the top 50: Corona, Michelob Ultra and Budweiser, and four campaigns in the top 100.

Unilever and Restaurant Brands International swap places this year, with the multinational consumer goods company moving up to second place and the fast food company moving down to third place.

#1 Country for creativity: USA

The top five ranking countries remain the same as last year, with the US and UK maintaining their positions for the past nine years. India is the most improved country, climbing from 23rd to seventh.

WARC says 

“In an industry that sometimes struggles to defend its place in the C-suite, the rankings offer an opportunity for marketers to reflect on the best campaigns in the business and to review the impact their own work has on their brands” – Amy Rodgers, Head of WARC Creative.

The WARC Creative 100 Ranking can be viewed in full here. It includes the world’s top 100 awarded campaigns for creativity, top 50 creative agencies, agency networks, brands, advertisers, countries and top holding companies. The campaigns, case studies, credits and subsequent insights reports are available to WARC Rankings subscribers.

The WARC Media 100 will be announced on 14 March and the WARC Effective 100 on 21 March.

WARC Rankings 2023: Effective 100 revealed

McDonalds is the number one most effective brand in this year’s WARC Effective 100, joining FCB New York, Wavemaker Mumbai, WPP, and AB InBev in this year’s top spots.

The WARC Effective 100 Ranking is produced by combining the results of the industry’s most important global and regional effectiveness award shows of 2022. The awards tracked are determined by a global industry panel survey and consultation with the WARC Rankings Advisory Board.

#1 Campaign for effectiveness: Contract for Change for Michelob Ultra by FCB Chicago and FCB New York

The most awarded campaign for effectiveness is ‘Contract for Change’ by FCB Chicago and FCB New York, for which Michelob made the US agricultural sector more sustainable by creating a programme that incentivised farmers to become organic growers. 

Andrés Ordóñez, Chief Creative Officer, FCB Chicago, said: “Creativity has the power to grow businesses and also to fuel change. We are beyond proud that Michelob ULTRA’s ‘Contract for Change’ was named the top campaign for effectiveness by WARC. This work has the power to reverse the damage done to our farmland and ecosystems and to create a healthier diet for millions of Americans.”

#1 Creative Agency for effectiveness: FCB New York 

After entering the top 10 for the first time last year, FCB New York has risen from #7 to become the top creative agency. It had three campaigns in the top 100 including the #1 campaign, Contract for Change.  

Ranked second is Alma Miami, the most improved agency, rising from 45th last year. In third place is Energy BBDO, Chicago, a new entry to the Effective 100 Ranking. 

# 1 Media Agency for effectiveness: Wavemaker Mumbai

Up from fifth position last year to claim top spot, Wavemaker Mumbai’s best performing campaign was ‘Not Just a Cadbury Ad 2.0’, ranked second this year. Mindshare New York entered the top ten to claim second place, up from #17 last year. Zenith Bogotá is ranked third.

#1 Digital/Specialist Agency for effectiveness: Semetis, Brussels

The highest ranked agency is a new entry - Semetis Brussels. Its top ranking is down to its work on The Breakaway for Decathlon, which ranked third. 

Narrative Los Angeles, jumps up from 41st to claim second place. Taking joint third position are BlueMedia Shanghai, up from #40 last year and new entry WeberShandwick Singapore.  

#1 Network for effectiveness: Ogilvy

After nine years of placing in the top five networks for effectiveness, Ogilvy has risen one place to become the #1 network for the first time ever. The network has nine campaigns in the top 100 and seven agencies in the creative agencies ranking.

DDB Worldwide moves up from fifth to take second place this year with a total of seven campaigns in the top 100 and three creative agencies and two digital/specialist agencies ranked in the top 50. Leo Burnett is in third, rising from 9th last year. The network has nine campaigns and three creative and one digital/specialist agencies in the top 50. 

#1 Holding Company for effectiveness: WPP

WPP has ranked in first place for the fifth consecutive year, with nine networks in the top 50, including Ogilvy in first place. The holding company has now claimed top position across all three WARC Rankings.     

“We're extremely proud to have topped the WARC Media 100, Creative 100, and now the WARC Effective 100 lists for 2023”, said Mark Read, CEO, WPP.

“Our strong agency representation across the three rankings showcases both the power of our ideas and the strength of our partnerships with clients. This recognition from WARC is a great endorsement of our amazing teams and their ability to deliver creative and innovative work that has a transformative impact around the world.”

Omnicom Group is in second place and Interpublic Group in third.

#1 Brand for effectiveness: McDonald’s 

McDonald’s is the highest ranked brand for effectiveness for the fourth year in a row, accruing more than twice the points of second place. Three of its campaigns ranked in the top 100 and 35 more campaigns from 24 different countries contributed to its total points. 

KFC moves up one place to be ranked second and Cadbury’ in third, moves up from #17 last year.

#1 Advertiser for effectiveness: Anheuser-Busch InBev

After topping the advertiser ranking for effectiveness for the first time last year, Anheuser-Busch InBev has retained its position. It had four campaigns ranked in the top 100, three of which are from Michelob Ultra. 37 other brands contributed to its total points including Corona, Cerveza Presidente and Pony Malta.

Climbing up two places from last year, McDonald’s claims second place and Unilever comes in at third. 

#1 Country for effectiveness: USA

The top three countries have remained the same for the past three years, with the USA claiming first place, followed by China in second and India in third. The USA has 25 campaigns in the top 100, while China and India had four each.

The WARC Effective 100 is available to  view in full here, and includes the world’s top 100 awarded campaigns for effectiveness, top 50 creative, media and digital/specialist agencies, agency networks, brands, advertisers, countries and top holding companies. The campaigns, case studies, credits and subsequent insights reports are available to WARC Creative subscribers.

The WARC Creative 100 and Media 100 were revealed recently.  

Netflix ad tier begins to deliver for brands

Netflix’s ad tier now has more than one million monthly active users in the US and has met the number of deliveries it promised advertisers, according to Bloomberg.

The one million figure, which refers to the total reached in the first two months after its launch last year, comes from internal data seen by the media company, while the delivery nugget comes from people familiar with the deals. 

Why it matters

The figures indicate that, after a slow start, Netflix’s new ad tier is successfully attracting new customers. And as the platform prepares to institute a crackdown on password-sharing, it can expect to attract another wave of ad-tier users likely to balk at paying for ad-free access.

Takeaways 

• The ad tier accounts for some around one fifth of new sign-ups in the US, according to market data platform Antenna.
• Most of these are new or lapsed customers, not people who have changed plans. 
• Over the longer term, the ad tier could attract anywhere between 15 million and 30 million customers in the US.

The bottom line 

Bloomberg notes that Netflix’s ad tier won’t yet have made much difference to the company’s growth, unlike rival Disney+ which has also introduced an ad tier but has increased the price of its main ad-free subscription service with relatively little churn.

Sourced from Bloomberg

P&G looks to radio to replace TV reach

Procter & Gamble, the FMCG giant, is returning to radio in light of tough economic conditions, faltering TV reach, and a new way of planning around reach rather than spend.

That’s according to a new piece in Ad Age, which reports on the 43% year-on-year leap in the company’s broadcast radio advertising spend, most of which went to local radio.

Why it matters

Audio has traditionally been a less sexy medium than anything involving video, but radio has a rich heritage as an advertising medium that still works. For instance, it retains similar levels of effectiveness to TV while reaching vast audiences at less than a fifth of the cost of connected TV and half the cost of linear TV.

Part of its beauty, as WARC’s Best Practice on Radio notes, is that it operates at all levels of the purchase funnel, helps to engender trust in the brand, and can significantly boost the ROI of other media.

What’s going on

It’s a surprising story with surprising details: not least that American 18-49-year-olds now spend more time listening to radio than watching traditional linear TV, according to Nielsen.

• What’s interesting is that radio audiences aren’t necessarily growing but, unlike TV, they have recovered from the pandemic and have remained far more stable.
• Part of the logic for P&G comes down to CPMs and their upward trajectory in the age of connected television, where they sit between $35-65, versus $10-15 for linear TV and $5-6 for radio. Radio has, reportedly, increased reach by 44% beyond TV.
• It also plays into a new commercial reality for companies like P&G, where squeezed margins require marketers not to look for digitally measurable bang for buck, but rather broad and regular reach.

But there are other benefits to radio, especially at the local level, and P&G’s well-publicised efforts to spend more media budget with black-owned media has helped to boost the company’s radio spending. Radio is also a very robust medium among young Spanish-speaking audiences, too.

Sourced from Ad Age, WARC

WPL draws new advertisers to cricket

With the first season of the Women’s Premier League under way, Indian cricket is expanding its advertiser profile in a move that could be transformational for the sport.

Why it matters

Cricket is vastly popular across India, but its traditional advertiser profile skews toward male pursuits, or male-focused products. A story in Afaqs explains that the inaugural WPL is bringing together a crop of brands looking to tap the large audience that the competition is likely to bring together from around the world.

It speaks to a deeper trend of women’s cricket viewership in the country, partly because of the recent successes of the women’s national team. A similar trend has been observed in the men’s IPL.

What’s going on

Afaqs reports some of the deals already cut for certain teams:

- Royal Challengers Bangalore: jewellery brand Mia by Tanishq, and Himalaya Face Care.

- Delhi Capitals: saree brand Navyasa and skincare brand Joy Personal Care.

- Mumbai Indians: Lotus Herbals, a cosmetics brand.

Meanwhile, at the broadcaster level, Viacom18 Sports – which will show both the TV and digital editions of the league – has named the World Gold Council as a sponsor. It has also launched its own major campaign to promote the WPL.

A new opportunity

What’s interesting is how the brands talk not just about finding reach alongside a popular sport (and its stars who are likely to feature as brand ambassadors), but how it creates opportunities to establish their credentials on equality. It also allows women-focused brands to tell a different kind of story. 

“Each of them have their unique stories of fighting the odds to reach the pinnacle of success,” Sonia Sharda, vice president-operations at Dentsu Creative, tells Afaqs.

“And these are the stories that women-oriented brands have been looking for, stories that will resonate with their audiences – the girl next door, a student, a working professional”.

Sourced from Afaqs, WARC, LiveMint

[Image: Board of Control for Cricket in India]

WARC Awards for Effectiveness 2023 – juries named

WARC today announces the juries for the WARC Awards for Effectiveness 2023 in association with LIONS; they include senior marketing leaders from brands and agencies from around the world.

Following the incorporation of the WARC Media Awards into the WARC Awards for Effectiveness, to create a comprehensive view of effectiveness across different techniques and campaign types, this year there are seven jury panels. 

Brand Purpose category

• Chiradeep Gupta, VP, Personal Care Head of Media and Global Integrated Media Strategy Lead, Unilever, Singapore – jury chair
• Clément Boisseau, Chief Strategy Officer, BETC Paris, France
• Daniel Sjöstrand, Head of Strategy, Forsman & Bodenfors, Sweden
• Rohit Arora, General Manager, Liwa Content Driven, UAE
• Emily Fairhead-Keen, Senior Strategy Partner, Wavemaker UK
• Cristina de Balanzo, Board Director, Walnut Limited, UK
• Boris Nihom, CEO, Dentsu Creative Amsterdam, Netherlands
• Yael Cesarkas, SVP Executive Strategy Director, R/GA, USA
• Raphaella Martins, Program Manager – Creative X, Meta, Brazil

Business-to Business category

• Wendy Walker, VP Marketing Asia, Salesforce, Singapore – jury chair
• Jessica Quiney, Head of Strategy APAC, Project Worldwide
• Paul Hirsch, President, Chief Creative Officer, Doremus+Co
• Chris Bagnall, CEO, Transmission
• Benedict Buckland, Chief Creative Officer, alan.
• Annabel Venner, Consultant & Non Executive Director, Brand Semiotics
• Kate Newstead, Marketing Science Lead, LinkedIn

Cultural Impact and Customer Experience categories

• Jennifer Healan, VP, US Marketing, Brand Content and Engagement, McDonald's, USA – jury chair
• Samuil Petkov, New Business Director, Noble Graphics Bulgaria
• Lauren Sooudi, Director of Brand Strategy, DNA, USA
• John Sills, Managing Partner, The Foundation, UK
• Vikas Mehta, CEO, Ogilvy Africa, Kenya
• Jessica Black, Strategy Director, Imagination, UK
• Adrian Goldthorp, Executive Creative Director, George P. Johnson, Australia
• Mélanie Chevalier, Founder and CEO, Creative Culture, UK
• Pascal Perrochon, Brand Planning & Engagement Leader, Pernod Ricard, France
• Jennifer Fischer, Chief Innovation & Growth Officer, Publicis Groupe Middle East & Turkey, UAE
• Aditya Kanthy, Group CEO and MD, DDB Mudra Group, India

Instant Impact and Long-term Growth categories

• Vasileios Kourakis, Global Marketing ROI Director and Media Lead, Consumer Product Division, L'OREAL, France – jury chair
• Christine Wise, CSO, DNA, USA
• Benoit Wiesser, Senior Partner, Strategy & Effectiveness, Asia, Ogilvy Asia, France
• Tomas Sweertvaegher, Strategic Director, Springbok Group, Belgium
• Dheeraj Sinha, CEO Leo Burnett, South Asia & Chairman BBH India, Leo Burnett, India
• Jose 'Pepe' Gorbea, Head of Brands & Sustainability Innovation, HP Graphic Arts, Spain
• Angel Chen, Chief Growth Officer, Ogilvy China; President, Ogilvy Beijing, Ogilvy, China
• Gugu Mthembu, Chief Marketing Officer, Telkom, South Africa

Partnerships & Sponsorships category

• Simon Peel, VP Global media, Haleon, UK – jury chair
• Tom White, Chief Strategy Officer, AMV BBDO, UK
• Neil Hopkins, Sponsorship Strategy Director, M&C Saatchi Sport & Entertainment, UK
• Shelley Smit, CEO, UM Canada
• Lauren McCracken, Managing Director, Head of Integrated Media Planning, OMD, USA
• Katie Rigg-Smith, Chief Strategy Officer, Australia and New Zealand, WPPAUNZ, Australia

Path to Purchase and Channel Integration categories

• Ross Sergeant, Global Head of Media and Touchpoints, Asahi Europe and International, UK – jury chair
• Nicholas Nyeow, General Manager, Berjaya Food Trading Malaysia
• Joe Smith, Strategy Partner, AMV BBDO, UK
• Emma Montgomery, CEO, Leo Burnett, Australia
• Britt Cushing, Managing Director, Head of Communications Planning, OMD, USA
• Kaleeta McDade, Chief Experience Design Officer, VMLY&R, USA
• Ali Cheikhali, Creative Strategy Lead, Google, UAE
• Ian Loon, Chief Transformation Officer, South East Asia / Chief Executive Officer, Media & Digital, Publicis Groupe, Singapore
• Kirk McDonald, CEO, GroupM North America, USA

Use of Data and Channel Pioneer categories

• Beatrice Boue, Global Head of Media, De Beers, UK – jury chair
• Benjamin Schwartz, Digital Business Director, BPG
• Venkata Bhonagiri, Sr. Partner, Group Director, Strategy & Analytics, Mindshare, USA
• Christopher Nurko, Chief Innovation Officer, Interbrand Group, USA
• Danish Chan, Co-Founder + Strategy Director, Untangld, Australia
• Gláucia Montanha, CEO and Head of Digital Business, Artplan and Convert, Brazil
• Ana Martín, Global Chief Strategy Officer x Telefónica, Havas Media, Spain
• Khaled Abou Nader, Chief Product Officer, Publicis Groupe, UAE
• Sandra Alvarez, General Manager, PHD Media, Portugal
• Maren Seitz, Head of Thought Leadership, EMEA, Analytic Partners, Germany
• Julian Brzoska, General Manager, Digitas, Vietnam

Reinventing the way effectiveness awards are judged, the juries will be guided by the Creative Effectiveness and B2B Effectiveness Ladders – universal frameworks for planning effective marketing communications to drive specific business-to-consumer and business-to-business outcomes. For each category, the panel will award Grand Prix, Gold, Silver and Bronze accolades.

The Awards are free to enter and open to all. Entries will be accepted until 29 March 2023. The winners will be announced at Cannes Lions in June. More information here or download the Entry Pack.

Li Ning looks to tech and diverse marketing

Upgraded product technology and “multi-dimensional marketing strategies” are key to growth at Chinese sportswear brand Li Ning, according to the company’s eponymous founder and joint CEO. 

During an earnings call, founder Li Ning outlined how the core competitiveness of the brand remains driven by professional sporting categories (primarily basketball and running). That makes functional technology an important focus, with “sports DNA” informing much of the brand’s marketing effort. 

Sponsorships and endorsements 

• High-profile events and athletes are used as brand endorsements.
• The brand has also established a long-term strategic partnership in the areas of campus sports events, training and campus sports education.
• Similarly, it has developed promotions with external resources related to children sports and children’s well-being to support Li Ning Young, its kidswear brand.
• A strategic partnership with League of Legends Pro League aims to create professional eSports equipment with more Chinese cultural heritage.

Memberships and more 

• Li Ning Young is laying the foundations of a future membership marketing system, beginning with individual store memberships.
• Li Ning has diversified its marketing efforts into entertainment areas, cooperating with variety shows, media and artists to promote its sports casual apparel which combines traditional culture with sportswear fashion trends.
• It has established a sports technology-based platform and product matrix targeting teenagers. 
• Li Ning has also integrated its marketing and sales efforts by combining the inventories for the e-commerce channel and physical stores offline.

Key quote

“Under the support of [government] policies relating to national fitness, a huge market vitality has been unleashed, which is conducive to promoting sports consumption” – Li Ning, joint CEO of Li Ning Company.

Sourced from Li Ning Company

Oatly plans US marketing push, China store push

As part of its global expansion, Oatly, the oat milk brand, intends to concentrate on brand building in the US while its China efforts are geared more towards expanding its retail presence. 

Why it matters

You can’t grow a brand without mental and physical availability but, even before that, all the manufacturing and distribution components need to be in place – and that’s an area which has sometimes been problematic for Oatly.

A US comeback 

While the category experienced strong double-digit growth in Q4, the brand was unable to capitalise fully on this because of earlier supply chain issues. These have now been overcome, CEO Toni Petersson told an earnings call, and, with the capacity to meet expected demand, “we can focus more on building awareness, trial, repeat, and, ultimately, brand loyalty”.

“As we are able to supply, we’re able to promote, and we are planning a big comeback [in the US] for the brand for Q2,” COO Daniel Ordonez added. “You will see the voice of the brand heard again in the US. That’s our priority, more than the heavy hitting on promotions.”

An Asian rebalancing 

Marketing spend was ramped up ahead of the post-Covid reopening and the Chinese New Year, but it’s now returning to more normal levels. The focus is turning towards building physical availability in mainland China, where local production facilities will be coming on stream. 

“We can target consumers in completely different ways than we have done before … so you’re going to see us diversifying to more channels in China,” said Petersson. 

Sourced from Motley Fool

[Image: Oatly]

Deliveroo cuts marketing spend, sees ad income grow

Deliveroo, the food delivery brand, sharply reduced its marketing spend in the second half of its financial year, while also seeing a contribution from its advertising business for the first time. 

The marketing cut

• Marketing spend in H2 was £88m, compared to £127m in H1; in the previous year spending was consistent at £134m in both halves. 
• The company reported that marketing spend had been “refined and optimised” in light of the consumer environment to produce greater efficiencies. 

The advertising opportunity 

• Deliveroo reported the “first real contribution from our nascent advertising business”, estimated to be worth £40m on an annualised basis. 
• So far, this comes mostly from sponsored restaurant ads in the app but a new platform allows FMCG partners and other companies to advertise their products.
• “We’re really excited about the opportunity long term. And we do expect this to be a much bigger part of the business in 2023 than in 2022,” CEO Will Shu told an earnings call. 

Building the grocery offer 

• Shu believes there are synergies in operating a dark grocery store alongside a food delivery platform. “I’m pretty sure I can do deliveries cheaper than standalone players. I’m pretty sure I have a bigger customer base. I’m pretty sure I can negotiate perhaps better deals with grocers. Put all that together, I definitely think about that as an advantage over the pureplay guys.”
• There are now 18,000 partner sites (end 2022), up 64% from a year earlier.
• An in-store price-match campaign with Morrisons produced a 20%-plus increase in order volume.

Key quote

“The food delivery industry has not yet cracked the problem [of] how we consistently deliver a great end-to-end delivery experience each time. It’s a giant opportunity and one we’re going after in 2023 to make sure we really up our game” – Will Shu, CEO, Deliveroo.

Sourced from Seeking Alpha, Deliveroo

Platform Insights: TikTok defies digital ad market slowdown

The digital ad market may be slowing in 2023, but a new WARC report finds TikTok is defying the trend: its two-year growth is set to carry into this year, with ad revenue increasing 53% to reach a forecast £15.2bn.

In the first of a new series of reports, Platform Insights: TikTok from WARC Media, provides an overview of the key data points that advertisers need to know about, spanning investment, consumption and performance insights.

Why it matters 

Alex Brownsell, head of content at WARC Media notes how TikTok is playing a growing role in culture around the globe. “Its potential ad reach stands at a reported 1.05 billion, including 409.1 million users aged 18 to 24. In 2022 it was the most downloaded app in the world for a third year running according to data from Sensor Tower. And its full-screen, vertical video format has inspired copycat products such as YouTube Shorts and Instagram Reels.”

What’s more, the Future of Media report – part of WARC’s Marketer’s Toolkit survey – found that 75% of marketers plan to increase their ad spend on TikTok this year. 

Takeaways 

• All product categories to increase TikTok advertising investment

TikTok has been a major beneficiary of marketers choosing to rebalance budgets in light of media fragmentation. WARC Media forecasts all categories will increase ad investment on TikTok in 2023, including sectors that are forecast to see overall ad spend decrease, such as automotive and soft drinks.

• Technology & Electronics sector leads the way 

WARC Media’s latest Global Ad Trends report, Media Models in Flux, found that advertising spend in the technology and electronics category is shifting toward digital ad formats in channels like video and audio. As one of the market’s fastest growing categories from an ad investment perspective, ad investment on TikTok is forecast to increase by 14.3% this year, to a combined investment of $2bn. 

In the US, consumer packaged goods drove significant growth, increasing ad spend with TikTok by 84% in Q4 2022 compared to the prior quarter, according to data from Pathmatics.

But … political clouds are gathering

A potential barrier to TikTok’s continued growth could be a groundswell of political opposition to the Chinese-owned app and its potential (mis)use of user data. In the UK, it is being banned from installation on government-owned devices, while in the US there are demands the platform be sold or face a nationwide ban. 

Sourced from WARC Media, Sky News, NPR

The elephant in the fast-fashion changing room

For all that many fast-fashion companies are tipping their hat to sustainability issues amid fears of the potential reputational risk if these are not properly addressed, few are willing to confront the contradiction inherent in their business model.

What’s happening (or not)

Responsible sourcing of raw materials, increased recycling, reduced usage of plastics and water, and offsetting carbon emissions are all worthy steps that some fast-fashion brands are taking to burnish their environmental credentials. 

But the fact remains that people are still buying more than they really need and disposing of (cheap) items that may be hardly used, with a huge amount of waste then being incinerated or ending up in landfill. 

The success of brands like Shein and Temu – price-focused fashion apps coming out of China – reinforces the perception that much consumer shopping behaviour has yet to catch up with professed intentions as regards sustainability. 

Elsewhere, a brick-and-mortar-based retailer such as H&M has modelled various scenarios and is now aiming “to attract more customers by providing a more sustainable and transparent offering”. 

“While there is mounting evidence that companies and shoppers are paying attention to how clothing is made and how to dispose of it, the boom in resale is the only indication of anyone interrogating the quantity of clothing currently produced,” Bloomberg observes.

Regulation can drive change 

The regulatory environment is changing. For example, the UN’s Task Force on Climate-Related Financial Disclosures (TCFD) has informed mandatory climate-related financial disclosure requirements for UK companies. In turn, these have prompted brands such as Asos and Boohoo to conduct their first detailed climate analyses. Greater transparency will bring greater scrutiny and pressure to deal with the waste problem.

What it means 

In surveys, people say they’ll pay more for sustainable products, but when facing straitened economic circumstances (in the UK, for example, the Office for Budget responsibility this week said that real household disposable income would fall by 2.6% this year, on top of a fall of 2.5% last year), the reality is that many will make spending decisions based primarily on price. But at some point there will be a recovery and consumers may feel more able to “shop their values”. 

Brands that plan around the long term, and the sustainability issues that assuredly are not going away, are more likely to reap the benefits even if they suffer some short-term pain. As to the future of a business model that depends on more people buying more things more cheaply, that’s a bigger problem and one that extends beyond fast fashion. 

Sourced from Bloomberg, World Bank, OBR, gov.uk

China’s PR and marketing teams move closer together

A growing number of PR and brand marketing teams are either wholly integrated or are moving closer together in response to pressures from both consumers and government. 

That’s according to the latest China PR Scope Study, from consultancy R3, reported in Campaign Asia.

Why it matters

The PR role is becoming an increasingly important aspect of marketing in China for several reasons. The report notes increasing scrutiny of marketing content and consumer product endorsements, while at a government level there is a push to educate people on matters such as data privacy and ESG issues. For businesses, this is leading to more synergies between PR and marketing. 

Key findings 

• 43% of marketing and PR teams across 109 brands in China reported some degree of integration last year.
• Among surveyed in-house teams, 30% said that PR and marketing are merged.
• Three-quarters (78%) of marketers are not planning to change their external PR agencies in the near future – indicating a degree of stability that isn’t always evident with other agency partners. 
• With China’s marketers challenged to create innovative content across channels that also drives business results, PR agencies can help differentiate and enhance competitiveness by highlighting service capabilities, innovation, and resources.
• PR agencies can show greater strategic thinking and planning skills for CSR- and ESG-related PR campaigns, which are crucial for shaping brand image.

Sourced from Campaign Asia

Young Aussies feel the squeeze

Three-quarters of Australians have been negatively impacted by the rising cost of living, with 18-34-year-olds particularly feeling the pinch in recent months.

That’s according to research by strategic insights consultancy Nature, reported in B&T, which highlights how all ages are taking mitigating actions, but the younger age group to an even greater extent.

Why it matters

What’s evident from the research is that a tough economic environment isn’t getting any better. Price and value for money are ever more important considerations for consumers, and brands may need to adjust their positioning accordingly. 

Key stats

• 61% of 18-34-year olds are working additional hours or taking on part-time work compared to 40% of the total population. 
• 57% are using less utilities – 10 percentage points above the total Australian population. 
• 56% are now looking to travel locally or not at all, up from 43% last August.
• 57% are cutting subscriptions and memberships, up from 44% last August.
• 61% are using automatic savings banking software to help them save money, up 15 points since last August.

Key quote

“Things have gone from bad to worse in the past few months. There’s been a drop in living standards, meaning widespread fear among those hit hardest: young people, renters and mortgage holders” – Justin Connally, partner, Nature.

Sourced from B&T

Airbnb and Asos mull advertising services revenue

As Asos becomes one of the latest retailers to expand its retail media capabilities (and inventory), and Airbnb considers matching its ad-ready rivals, everything is either becoming an ad network or thinking about it. 

Why it matters

What’s the common factor of all the companies now doing or thinking about making a retail media play? They tend to have enormous scale, but the cost of their operation means that scale doesn’t translate easily into profits – and this is especially true of e-commerce firms. Advertising services offer the chance to buck the trend, by selling ads targeting audiences searching with intent to buy.

As more and more retailers build their own networks, the experience for advertisers is getting more complicated. With so many new platforms and few standards or common cross-platform measurements, it’s becoming a case of have to buy rather than want to buy.

Airbnb

Research from Skift estimates that the size of the rental platform’s opportunity could be $1.25 billion, based on 1% of gross bookings, by 2026.

“I think it’s a massive opportunity,” CEO Brian Chesky told a Morgan Stanley conference recently. He said he could “easily” imagine adding a few equivalent percentage points of take rate if you were to scale that over time. “I think there’s a lot of comparables like Amazon, one of the largest advertising platforms now in the world, Etsy or Alibaba or even Booking.com.”

Asos

Similarly, Asos – which is facing broadly challenging trading conditions – is also eyeing an expansion of its retail media that it initially set up in 2021, The Drum reports.

“The sponsored ads are a really effective addition,” Elton Ollerhead, director of Asos Media Group, told the magazine.

“It’s a low-funnel tactic when people are intently searching for a specific item, so that’ll help brands really showcase their product at a time when people are ready to buy.”

Sourced from WARC, Skift, The Drum