The Feed

Tesco joins the checkout-free rush

Multinational retailer Tesco is the latest UK supermarket to experiment with a store format that lets consumers shop and pay without scanning goods or using a checkout. 

Shoppers check into the central London GetGo store by scanning a QR code generated by the Tesco.com app on their phone. Their movement in-store is monitored by an artificial intelligence (AI) system that uses cameras and weight sensors in the shelves to track what items are picked up with the final bill being charged to the customer’s Tesco account when they leave.

Why it matters

Such stores are not going to replace the existing array of formats, but UK supermarkets are wary of the threat posed by Amazon which has pioneered the till-free store and now has six in London with at least four more in the pipeline. Supermarkets Morrisons and Aldi are also working on a similar concept. 

Takeaways

• Supermarket chain Sainsbury’s decided two years ago its customers weren’t ready for such a store but it may rethink that as consumer expectations of grocery shopping have changed during the past 18 months.
• More people now shop online and more are making use of instant delivery services (Tesco is expanding Whoosh, its one-hour delivery offer). 
• When marketers talk about a seamless customer experience, the till-free grocery store surely exemplifies that.

Sourced from Guardian, Telegraph [Image: Retail Week]

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What ROI should you expect?

A new analysis of WARC’s database outlines the returns on investment (ROI) marketers can expect from successful advertising campaigns: the median profit ROI is 2.26:1 (every dollar invested brings an additional $2.26 of net profit having excluded the cost of the campaign in the calculation).

Why it matters

Profit-based ROI (also known as ROMI or payback) can be a useful measure because it allows you to compare the efficiency of different campaigns with different budgets. It also allows you to compare the return from your campaign with the returns from alternative investments. However, as an industry, marketing has misused ROI, mistaking it for a goal instead of a measure of efficiency.

Takeaways

• Low-budget campaigns have the highest average ROI ratios, as they need to deliver a much lower absolute return to generate a stronger ROI ratio.
• Among global successful campaigns, the median revenue ROI is 4.00:1. Interestingly, this is a similar figure to the average revenue ROI from UK cases that weren’t submitted to an award (£3.80), according to recent research from Magic Numbers.

Read more in Benchmarking ROI using successful campaigns

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Mental health in APAC: How brands can enhance people’s well-being

The increasing demands of modern life have combined with the pandemic to put even greater pressure on the wellbeing of APAC’s people, who find stress the biggest threat to wellness, according to McCann Worldgroup.

On World Mental Health Day earlier this month,  the agency network shared some insights on the mental health of APAC drawn from three of its recent Truth Studies: the “Truth about Culture & COVID-19”; the “Truth about Gen Z”; and the “Truth about Wellness”.

Why it matters

Brands that see the specific challenges and perspectives in Asia Pacific may wish to consider their role as companions along the mental wellness journey and consider how they can help to optimise the wellbeing that people strive for.

Key insights

• Q: “What is wellness?” and A: “A state of mind/my emotions” is ranked 31% globally vs 16% China and 9% Japan, with both markets interpreting wellness as more of a “physical state”.
• Despite this, China and Japan both index higher than the global average on the perspective of wellness being “a way of life”, indicating a more holistic view.
• Almost half of people surveyed globally agree that stress is the biggest threat to wellness, with APAC in alignment: China at 48%, India at 45% and Japan at 40%.
• Due to COVID-19, people are feeling more anxious than before and APAC markets index higher than the global average of 30.5%, with 42.5% for Japan and 31.6% for China.
• Some 61% of people in APAC feel pressure to be constantly busy and 41% report increased levels of anxiety.
• Compared with 58% of the general population globally, 69% of Gen Zs in APAC feel pressure to be constantly busy, with Hong Kong, India and Indonesia topping the list.

Takeaway

“It is clear that more action is needed around mental health. With consumers believing in the power of brands to make a difference, there are opportunities for brands to step up and consider their role in mental wellness to be more cognisant, supportive and action-oriented” – Richard McCabe, Chief strategy officer, McCann Worldgroup Asia Pacific.

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Tapping the potential of creator-driven marketing for brand growth

There is huge potential for brands to engage with audiences on social media and increase unplanned purchases by narrowing the funnel between product discovery and purchase, according to a new report from WARC, TikTok and Publicis Groupe.

Why it matters

A survey-led white paper, From Discovery to Purchase: The Role of Community Commerce, explores new and effective opportunities for brands and retailers to sell directly to consumers through social commerce. Eighty percent of TikTok users, for example, say the platform helps them get ideas about brands and products they had never thought of before

Key insights

• Community commerce is an emerging opportunity

Accelerated by the ongoing shift to digital, community commerce – defined in this report as entertaining creator-driven social content featuring brands – sits at the intersection of community, shopping and entertainment.

With the right approach and authenticity, brands can fit seamlessly into this social environment and engage with audiences as they congregate around particular interests, hashtags or creative stories. Brands offering genuine value exchange and willingness to test and learn are already reaping the rewards.

• Discovery and inspiration disrupt the path to purchase

Social platforms have disrupted the purchase journey, which is now led by spontaneous discovery and inspiration. Every moment on a platform is an opportunity for conversion, and authentic creativity is key to attracting and retaining the audience’s attention.

With social platforms inspiring 70% of consumers to shop, even when they weren’t looking to, the power of community can drive engagement and stimulate decision-making.

Propelling purchase decisions

Social platforms’ role as a connector makes it an ideal place for brands to reach their audiences, and by collaborating with creators, brands aren’t just placing themselves in front of people anymore, they’re becoming part of communities, and that drives action.

Brands must make the most of technologies that facilitate a seamless community commerce experience. All product categories have the potential to convert audiences: beauty, clothing and accessories led the way, and now luxury and automotive are also maximising opportunities.

• Content creators are the new brand storytellers

Creators are invaluable for driving the engagement that facilitates community commerce. They boost discovery (78%), educate and inform their audiences (76%), and inspire their audiences to try new products (73%).

Community is the new version of word-of-mouth, making it a powerful force for all types of social commerce, and the opinions of followers can boost or block sales. It stimulates belonging, information-sharing, and ultimately demand for your product through the powerful influence it can wield.

Background

The study is based on a global survey of 2,230 consumers, 18-45 year-olds using two or more social media platforms (including TikTok, YouTube, Facebook, Instagram, Snapchat, Kwai), across 11 markets, as well as one-on-one interviews with 18 C-suite marketing leadersand analysis of WARC’s latest proprietary research. A complimentary copy of the report is available to download here.

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Email marketers' priorities shift to data

Issues around budgets and resources have regularly been cited as the main challenges facing email marketing, but data from the Data & Marketing Association (DMA) shows that has changed during the course of the pandemic with difficulties around data coming to the fore.

Why it matters

The pandemic has forced many brands to think differently, a process that has also presented marketers with fresh concerns. There is now increased awareness of the challenges around the technology required to collect, manage, and utilise the insights data can provide.

Key findings

• Concerns around the lack of data, access to it, or its quality, were mentioned by half of respondents (52%) to a DMA survey – an increase of 10% year-on-year.
• The proportion of marketers citing ‘limited budget’ as a challenge has fallen from 44% in 2020 to 29% in 2021.
• Around half of marketers report increases in many email key metrics in 2021: list size (51%), delivery rates (43%), open rates (48%), and click-through rates (46%) have all increased.

Key quote

“The better the quality of data and technology to analyse it, the more accurate insights we acquire about prospective and existing customers, which leads to more informed decisions that benefit businesses, and most importantly, their customers” – Tim Bond, head of insight at the DMA.

Sourced from DMA [Image:DMA]

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Apple’s ad business capitalises on rivals’ limitations, critics say

Since implementing new privacy options that make it easy for its iOS users to opt out of ad tracking, Apple’s ad business for mobile apps has flourished – – the FT reports that the iPhone maker’s ad business has tripled to what will likely be a $5bn operation by the end of this year.

Why it matters

Implementing rules that curtail your competitors and then capturing that business can be seen as risky behaviour in the medium term.

Not only have charges been levelled at the company from around the world, along with robust new laws from South Korea, Apple is now in the appeals process in one of the antitrust lawsuits defining big tech: its battle with Epic Games, in which a judge ruled that it would need to permit developers to point to other payment systems other than its own.

As legislators’ views harden, a perception that the firm is using hardball tactics could lead to far stricter rules, and rules that will be done to Apple rather than developed alongside Apple.

The basis of growth

Per the FT, Apple’s rules that now opt users out of tracking by default have effectively cut the flow of information to rivals. On its platform, then, Apple plays by a different set of rules.

While Apple’s ad offer is simply a sponsored slot at the top of search results, it combines this with a use of personal data that, critics argue, goes against the spirit of its privacy credentials.

Apple declared its interest in competing in search last year. While it will always lack Google’s global scale, its devices are popular with wealthy consumers and it is neck-and-neck with Android in the US, which is still the world’s biggest ad market.

Brands want to be in front of those users – its booming ad business is testament to that.

Sourced from the Financial Times, The Verge, TechCrunch, WARC. Image: Apple

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Global marketing DEI Census reveals major challenges

The first-ever Diversity, Equity and Inclusion Census of the global marketing industry has found the most common forms of discrimination reported are on the basis of age and family status, but there are also challenges around gender, ethnicity and disability. 

Background 

The World Federation of Advertisers (WFA) and its research partners gathered more than 10,000 responses from 27 markets around the world this summer with the online survey identifying not just the demographics of participants but also their sense of belonging and their experience of discrimination and demeaning behaviour.

While the marketing sector outperformed every other category that has been analysed by research partner Kantar, negative behaviours and discrimination are such that one in seven considers leaving the industry. 

Key findings

• 27% agreed their company does not treat all employees fairly regardless of family status; 40% of women agreed that family status can hinder one’s career.
• 27% agreed their company does not treat all employees equally regardless of age; 36% agreed that age can hinder one’s career.
• Women’s experiences are notably poorer than men’s and there is also strong evidence of a gender pay gap in some markets.
• Ethnic minorities score lower on key questions such as “feel like I belong at my company” than ethnic majority groups in nearly all markets.

• Most respondents (60%) say their organisation is taking active steps to become more diverse and inclusive, but in some countries this figure is significantly lower (26% in one market). 

Final thought

“The marketing industry shows itself to be relatively progressive at first glance. But scratch beneath the surface and there is a myriad of stories of suffering. Common themes arise again and again; discrimination against care givers and the old and the young, women and minorities living poorer work experiences and stark inequalities between cohorts and countries. This survey shines a light on those stories so that action can be taken to address them. There is a business and moral imperative to do so” – Gareth Rees, Head of CX Partnership Services, Insight Division, Kantar.

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Consumers prefer online to in-store for product discovery

Consumers prefer discovering new products online than in-store, according to data from customer experience company Bazaarvoice.

Why it matters

As e-commerce has grown rapidly, in-store retail has been challenged and may need to have a purpose beyond shopping in order to connect with customers. Using the physical space for social content and experiences could be one successful strategy, particularly as consumers currently find browsing and discovering more enjoyable when online.

Takeaways

• Nearly two-thirds (64%) of consumers say they find it easier to browse and discover new items online, compared to just one-third (32%) who say they find it easier when in-store.
• Consumers also browse and discover items more frequently when shopping online and they enjoy this process more than when in-store.

Sourced from Bazaarvoice, WARC Data

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Political advertisers' focus shifts towards connected TV

A year out from 2022’s mid-term elections, the media attention of political advertisers is shifting away from the digital channels they have been using successfully for some years and towards connected television (CTV).

What’s changed since last time?

• The tech has moved on, more CTV inventory is available.
• During the pandemic an increasing number of people started using streaming services.
• Previous targeting options are becoming limited by the need to move away from using cookies. 
• Platforms like YouTube and Facebook have introduced new measures to control political advertising.

What can we expect? 

• Campaigns are likely to go broader with higher quality content. 
• CTV ads are not nearly so tightly regulated as traditional TV ads and they can still be targeted at a household rather than individual level.
• Figures from analytics firm AdImpact, cited by Axios, indicate that spending on CTV will exceed that on the usual digital channels (mobile, tablet, desktop) by around $200m ($1.5bn vs $1.3bn).

Key quote

“Some of the proxy metrics for success – reach, frequency – will actually become harder to measure, which can be a positive and force greater focus on outcomes, like tying advertising data to actual opinion shift from polling” – Mike Schneider, partner at Bully Pulpit Interactive.

Sourced from Axios

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Singapore Gen Z and millennials: Five trends in the new digital landscape

Creating experiences virtually is important in engaging Singapore’s millennials and Gen Z audiences who are spending up to a third of their day online seeking information and entertainment, a new report says, 

That is one of the key trends uncovered by Navigating Social Media in a Post-Pandemic World, from SGAG and TrendWatching. 

Why it matters

Brands can play a big part in consumers’ digital social lives by engaging them in ways that meaningfully address their current needs and expectations. Understanding content and engagement trends provides brands and marketers with opportunities in a transformed digitised world.

Key insights

• During COVID-19, 77% of consumers in Singapore spent more time on social media, with highest growth in adoption for TikTok.
  
• Online audiences do not want to spend too much effort in consuming content online; the future of video is to go short.
• With decreasing attention spans, brands will have to create content that is utilitarian, relatable and personal.
• Content that is relatable, humorous or aligned to social causes is more likely to garner engagement from online audiences.
• Sponsored content can be polarising but there are ways to engage and retain audiences.

Background

The report is based on feedback from over 600 Singapore-based respondents aged 15–45 from SGAG’s in-house research panel, as well as qualitative insights from HEPMIL Creators’ Network, supported by TrendWatching’s insights and data.

Sourced from SGAG

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More than half of marketing emails threatened by iOS 15

Apple's popularity as an email service and the company's push into data privacy means the ability of advertisers to understand the performance of their email marketing campaigns is being challenged, according to data from email marketing company Litmus.

Why it matters

As part of the recently launched iOS 15, Apple says the Mail Privacy Protection feature "hides your IP address, so senders can’t link it to your other online activity or determine your location. And it prevents senders from seeing if and when you’ve opened their email".

This comes at a time when email marketing has grown in importance for many brands – it can be a cost-efficient way of enhancing first-party data and can allow personalised messaging in the absence of third-party data.

Takeaways

• More than half of all emails opened are at risk - the iPhone Mail app is the market leader and is responsible for 40.3% of all email opens, with the Apple Mail app on Mac devices third (11.3%) and the iPad Mail app seventh (1.4%).
• Early data from email sender SparkPost suggests that "about 97%" of iOS 15 users have approved Mail Privacy Protection.

Sourced from Litmus, WARC Data

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Cadbury’s Donating Words takes APG Creative Strategy Grand Prix

British chocolate brand Cadbury, in its Grand Prix winning case study, explains how a new platform restored the brand’s historically held principles to reverse market share, penetration, and grow sales ahead of the category.

The winner

Cadbury and VCCP London’s case study, which WARC members can read here, explains how the brand had attempted to hold onto the ‘glass and a half of joy’ position that had animated 2007’s Gorilla. But by 2017, the world – and the confectionery category – was in darker times.

With loneliness a pervasive ill affecting the UK’s large elderly population, the brand’s distinctive asset was repurposed to a much-needed idea of generosity in the form of ‘a glass and a half in everyone’, sparking creative work that people could participate with easily but meaningfully.

This platform launched three years of successful work that drove core-brand-driven market share and revenue growth ahead of the category.

A strong field

Cadbury and VCCP stood out in an exceptional field of Gold winners that included 2020 Grand Prix winning brand Libresse/Bodyform. Golds also went to Unilever, Diageo, FormulaE, KFC and McDonald’s.

The awards were announced at an event in central London on Thursday evening.

WARC subscribers can access all of the Gold, Silver, and Bronze award winners as well as the Grand Prix-winning case study.

Sourced from the APG, WARC

Read the APG Creative Strategy Awards 2021 here

Poor briefs erode marketing budgets

As much as one third of marketing budgets could be wasted due to poor briefing, new research suggests.

That’s according to the BetterBriefs project, the first-ever global study (based on the opinions of 1,700 marketeers and agency staff from over 70 countries) into the shortcomings of marketing briefs, revealed at the IPA’s EffWorks Global event.

Why it matters

Respondents estimated that a third of the marketing budget goes to waste due to poor briefs and misdirected work. Both marketers (69%) and agencies (73%) agree that rebriefs happen too often, leading to loss of time, money and fuelling frustration on both sides.

Key findings 

Marketers and agencies are on different planets

• It’s not a new finding but the differences remain stark: marketers (80%) think they write good briefs, but only 10% of creative agencies agree. 
• Over three quarters of marketers (78%) think the briefs they write provide clear strategic direction, but only 5% of creative agencies agree.
• Marketers (83%) believe that the briefs they write contain clear and concise language, but only 7% of agencies agree.

Briefs are essential but neglected 

• Both marketers (89%) and agencies (86%) agree that it’s challenging to produce good creative work without a good marketing brief. But almost all marketers (90%) and agencies (92%) also agree that the brief is one of the most valuable and paradoxically most neglected tools marketers have to create good work.

The co-founders of the BetterBriefs project, Matt Davies and Pieter-Paul von Weiler, say its aim is “to jumpstart more informed conversations about briefs. They should direct and inspire, not confuse and frustrate”.

Sourced from IPA, BetterBriefs

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Indian retailers demand Amazon probe

A group representing millions of India’s brick-and-mortar retailers has demanded the Indian government launch an investigation into Amazon, following a report on the e-commerce giant’s alleged unethical practices in the country.

Background

Amazon India’s private-brands team is accused of using internal data to identify products to copy, with search results then manipulated to ensure the Amazon versions appear at or near the top of the search results. According to Reuters, internal documents show that this way of operating was a formal strategy in India, reviewed by at least two senior executives. “We believe these claims are factually incorrect and unsubstantiated,” Amazon said in a statement.

The fallout 

Now the Confederation of All India Traders, which claims to represent 80 million retail stores, and the Alliance of Digital India Foundation, a non-profit representing some of the country’s biggest startups, have urged the government to take action. 

Why it matters

The Alliance referred to “Amazon’s predatory playbook of copying, rigging and killing Indian brands” – an emotive description that may strike a chord with many Indian consumers. Already there have been calls to boycott the platform.

Sourced from Reuters, Economic Times

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