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.  

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.

Purpose? What purpose?

The purpose-driven marketing efforts of businesses are not standing out in the memories of many Americans, new research suggests.

A study by GfK, in collaboration with Goodvertising Agency, found that more than half those surveyed* could not, unprompted, name a single company that was making a difference in one of three key areas – the environment and climate change, diversity and inclusion, and giving back to the community.

Even those brands strongly identified with purpose (eg Ben & Jerry’s) did not get “extra points” from consumers for their efforts when prompted.

Why it matters

Purpose-driven efforts and campaigns appear to have become commonplace, says Eric Villain, client solutions director for marketing effectiveness at GfK. “If a brand were to completely shun causes, that would likely be noticed; but supporting them is not a differentiator anymore.”

There are no quick wins to be had when it comes to purpose: brands need to invest for the long term and to explore new creative ways to stand out and build a lasting legacy.

Takeaways 

• Americans who make over $125,000 a year are much more likely to remember at least one brand supporting a cause, compared to those earning $30,000 to $60,000. 
• Among those who could name at least one brand that is giving back, the overwhelming majority of mentions went to two retail giants – Amazon and Walmart; Tesla was the only other brand to break the threshold of 100 mentions in a category.
• Previous GfK research has found that brand purpose ads generally underperform mainstream ads when it comes to grabbing and holding viewers’ attention.

Final thought

This is another example of the gap between what consumers say (they’ll tell researchers they are more likely to buy brands supporting good causes) and what they do (in this case not noticing marketing that tells them about those same causes). 

Is the problem with the marketing? Or do consumers’ real interests lie in their wallets? But maybe not all purpose-driven marketing needs to be seen through the eyes of consumers: as the CEO of Mars pointed out recently, addressing social and environmental issues is important in attracting talent to a business.

*2,024 interviews were conducted among a US online population in October and November last year.

Sourced from GfK, WARC

Kingfisher's e-commerce success opens new doors

Kingfisher has seen its e-commerce business grow significantly over the past three years, a development that is enabling the DIY and home improvements company to further expand its marketplace options and explore new areas such as retail media. 

E-commerce expands 

• E-commerce sales have increased 146% since 2019 across Kingfisher’s retail brands (which include B&Q, Screwfix, Castorama, Brico Dépôt and Koçtaş). 
• E-commerce penetration has doubled to 16.3% over the same period; a long-term goal is to reach 25%. 
• Kingfisher has introduced marketplaces in the UK, Spain and Portugal, and is planning to roll them out in France and Poland. 
• Marketplaces currently offer an additional 340,000 SKUs at B&Q, on top of the brand’s own 40,000 SKUs in-store and online; the goal is to reach 1 million SKUs.

And there’s more data 

• The growth in e-commerce has been a major factor in acquiring 20 million new identifiable customers since 2019.
• This is helping the business increase personalisation capabilities and enabling greater customer loyalty and retention. 

Retail media has potential 

• “In a new initiative for Kingfisher, we are developing new opportunities to monetise our scale through retail media, including advertising,” CEO Theirry Garnier told an earnings call. 
• Online advertising operations have recently begun at Castorama France in a partnership with CitrusAd. 
• Garnier believes retail media revenues could reach 3% of e-commerce sales as suppliers and marketplace merchants become advertisers on Kingfisher sites which collectively command 1 billion visits annually. 

Sourced from Kingfisher

[Image: Kingfisher] 

Instagram moves on search amid AI buzz

Meta-owned Instagram is adding new search and ‘reminder’ advertising features, as the social network seeks to capitalise on a trend toward more image-based search.

Why it matters

Meta needs to boost ad demand, and this news suggests that there remain more opportunities than the relatively abstract AI conversation. It’s not a sexy feature, but it’s a solid bet.

But it’s a surprisingly late development, given the trend last autumn of Google adapting its search experience to better compete with TikTok and Instagram. The pair hoovered up around 40% of searches by young people, but not necessarily the ad spend that would follow those searches.

What’s happening

According to an announcement, Instagram is now testing two new ad formats:

• Ads in search results: sponsored posts will feature alongside organic posts against product or category searches.
• Reminder ads: creators or brands can give the option for users to set a reminder for events or promotions.

The state of search

Although global search spend has slowed since the end of the year, according to WARC Media, the market is forecast to surpass its Q4 2022 peak by the end of 2023, a stretch of growth that Instagram will target.

Sourced from Meta, WARC

Behind the Prime Hydration phenomenon

An energy drink brand launched by two YouTubers has generated extraordinary levels of interest and significant sales among a target audience of tweens and teens, but is it about anything more than playground FOMO? 

Why it matters

The Prime brand managed to make $250m in its first year and is on track to double that in its second, so that in itself is worthy of note. Admittedly, those figures come from one of the influencers selling it, so can perhaps be taken with a pinch of salt, but the social media videos of shoppers scrambling for limited supplies are real enough.

It’s also a good example of popular social media influencers using not only their follower base (in this case the combined 39 million of Logan Paul and KSI) to engage with a target audience but also YouTube’s own algorithmic networks to further increase the numbers of that audience.

“Their win may form something of a blueprint for other content creators as YouTubers become more professional and look to harness the platform’s algorithm for their commercial success,” suggests Hantian Zhang, senior lecturer in media at Sheffield Hallam University. 

Takeaways 

• Zhang explains in The Conversation how famous YouTubers dominate the platform’s recommendation algorithm, making their videos more visible, which in turn results in more similar content being recommended to viewers. 
• By inviting other well-known YouTubers to sample their new drink in their own videos, Logan Paul and KSI increased the likelihood of YouTube’s algorithm recommending further Prime-related content to viewers.
• Both YouTubers also responded to fans’ comments and questions about the drink, increasing engagement. 
• Concerns have been raised about the levels of caffeine in Prime Energy and whether the electrolytes in Prime Hydration are suitable for children.

Final thought 

Many children have their own social media accounts, even those who are supposed to be too young to have one. And they tend to have a very different relationship with influencers than an older generation. “They follow them, understand the algorithms, they are learning from them. [Because] they think that they can do it, younger kids are smarter than a marketing executive,” PR executive Mark Borkowski told the Financial Times.

Sourced from The Conversation, Financial Times, YouTube, Wales Online, WSOC-TV

[Image: Prime]

Understanding the link between attention and effectiveness

Attention makes a tangible difference to effectiveness – and factoring in the impact of media choices is a step to understanding why, according to a new study. 

In their report* on advertising effectiveness, marketing consultants Rob Brittain and Peter Field examine ESOV or extra strength of voice, and how media platform selection can either amplify or undermine creative strength.

Why it matters

Positive ESOV improves campaign effectiveness while media platform choices also have a significant impact, which mean that how much you spend and where you spend it both matter.

Takeaways

• The effectiveness difference between a high-attention and low-attention media plan is big, even at the top end of the spectrum.
• Higher-attention media platforms come at a cost but given their greater effectiveness, you get what you pay for.
• The key threat to the powerful ESOV methodology is the dysfunction in the media market.

*Professor Karen Nelson-Field contributed to ‘Attention and Effectiveness: To ESOV and Beyond Part II’, a report providing new analysis of extra share of voice (ESOV) and the ability of media platform selection to amplify or undermine a campaign’s creative strength, to help advertisers increase the certainty of return from their advertising investment.

The Aussie mindset is changing

While there’s widespread concern about the rising cost of living, a new study finds Australians are changing their mindset to focus less on work and more on friends and family. 

Why it matters

How Aussies Move, from outdoor agency oOh!Media, is based on in-depth interviews with commuters and travellers, and a nationally representative survey of 2,000 people. It found that there’s a focus on saving money but the top one-third of responses also show how Australians are now prioritising health and the well-being of themselves and those around them.

One consequence is that they are spending more time connecting through various activities – exercise, social, cultural – which means more time spent in Out of Home environments.

Takeaways 

• 80% of respondents expressed concern about the rising cost of living.
• 58% said being out and about in public spaces results in a more positive mindset.
• 93% report having more time to do what they want compared to pre-pandemic (this despite more than half not having the ability to work remotely).
• Two-thirds plan to travel for leisure in the next six months, with almost half saying they will travel within their own state. 

Key quote

“We’ve shifted into a mindset of valuing experiences over possessions and needs over wants” – Neil Ackland, Chief Content, Marketing & Creative Officer at oOh!Media. 

Sourced from oOh!Media

ByteDance in search of new growth beyond TikTok

TikTok-maker ByteDance is seeking new forms of growth through apps targeting longer form video and video production.

Why it matters

TikTok has remained resilient in its ad revenue, but with a groundswell of political opposition to the app from governments and major organisations the company is seeking to diversify user growth.

What’s going on

In China, ByteDance will debut a new video app, Qing Tao, according to the South China Morning Post. Adding to a roster that includes the popular Chinese version of TikTok, Douyin, the new app seeks to build out a young user base around longer knowledge content with topics including tech reviews, pop science and culture, the newspaper reports.

• The move reflects the need of the company to diversify in the face of regulatory scrutiny around the world and intensifying competition from rivals, and it seeks to train its video expertise on the longer-form content on the video site Bilibili.
• It comes as knowledge content – often based around teaching, with how-to videos and long lectures - gains popularity across video apps, and with volumes growing 35% on Douyin alone.

Elsewhere, ByteDance is finding success by building out the video editing tools that have helped to make TikTok and Douyin popular through CapCut, which has recently overtaken TikTok in US app charts according to the Wall Street Journal.  While CapCut says its data processing for non-Chinese users is the same as TikTok’s policy, it remains possible that this app is also under regulatory pressure.

• It appears that its popularity stems from its ability to help users to make videos that perform successfully across apps, not just on TikTok, and garner views on Meta and Alphabet properties.
• However, it chimes with a recent move from Meta to add a subscription tier for creators, by focussing on improving the experience of power users who create the content that powers the apps’ broader popularity.

Sourced from WARC, SCMP, WSJ

Most jobs affected by AI but critical thinking essential

Most workers across industries are likely to see their workplaces affected by the adoption of generative AIs unless they work in manual occupations, according to a new paper estimating the effects of AI on the labour market, with serious implications for advertising.

What’s going on

Artificial intelligence – generative systems like ChatGPT, Dall-e, and Google Bard – all appear to have exploded into the mainstream and are evolving at an incredible rate. But a new a study submitted for review by researchers at OpenAI (the erstwhile non-profit, now the company behind ChatGPT) finds that up to 80% of US jobs will be affected by GPT (language models) for at least 10% of their daily tasks.

Around 19% of workers could see 50% of their daily tasks impacted, often degree-level jobs that tend to be higher paid, across all industries.

“Our analysis indicates that the impacts of LLMs (large language models), like GPT-4, are likely to be pervasive,” the paper states. “While LLMs have consistently improved in capabilities over time, their growing economic effect is expected to persist and increase even if we halt the development of new capabilities today.”

Why it matters

A recent Gartner survey found that nearly half of companies are now drafting policies on the technology’s use in the workplace. And some brands, such as Coca-Cola, have already integrated some of the technology into their work.

Accountability and truth are just a handful of the questions the tech is now asking us to consider. There are other big ones concerning what happens to the structure of societies and economies when we begin to automate traditionally well-paid jobs requiring lots of education.

There are more prosaic lessons to be taken. While the skill of writing or image-making is quickly becoming commodified, the skills of scientific or critical thinking are more likely to retain their worth. As such, the copy and artwork element of advertising may become much quicker to produce, but the critical thinking and problem-solving that leads to it is more likely to continue to be a competitive advantage.

There are some curious findings in this research, despite the headline figure. Notable question marks include the low exposure to GPT-ification of graphic design or of search marketing strategy. The nature and substance of creativity are, likely, due a reconsideration.

Despite this, the tasks of processing information and data, or those of making words and images (publishing), are soon going to look very different. Most industries that don’t require physical work are likely to undergo deep change.

The method

The study looks at the United States’ O*NET database, which standardises the descriptions of 1,016 occupations by breaking them down into tasks. Each task is then judged on whether a GPT-powered system would be able to complete the task in at least 50% of the time while maintaining high quality. It’s not perfect, and the authors acknowledge that most jobs are not simply collections of distinct tasks. It’s worth noting it also comes from OpenAI, which is now commercialising these systems.

Findings

• Safe skills: Jobs that require scientific and critical thinking skills are negatively associated with exposure, suggesting they are less likely to be affected.
• Skills under threat: Jobs that require programming and writing skills are more likely to be affected by large language models.
• Education: ‘Individuals holding Bachelor’s, Master’s, and professional degrees are more exposed to GPTs and GPT-powered software than those without formal educational credentials’.
• Industries: At an industry level, information processing, publishing, insurance and data industries are highly exposed, while manufacturers of food, wood products, and support activities for agriculture and forestry are minimally exposed.

Occupations with high (100%) exposure, a selection:

• Web and digital interface designers
• Mathematicians
• Climate change policy analysts
• Financial quantitative analysts
• Accountants
• News analysts, reporters, journalists

Of occupations that might be of interest to WARC readers (that happen to be included in the O*NET database):

• Public relations specialists: 66.7% exposure
• Survey researchers: 75% exposure
• Creative writers (along with poets and lyricists): 68% exposure
• Search marketing strategists: 14.5% exposure
• Graphic designers: 13.4% exposure
• Writers: 82.5% exposure

Occupations with no exposure, a selection:

• Athletes
• Stonemasons
• Slaughterers and meat packers
• Dishwashers
• Cooks
• Waiters and bartenders

Sourced from OpenAI, UPenn, Bloomberg, Coca-Cola

How El Pollo Loco hit over six billion views on TikTok

Restaurant chain El Pollo Loco generated over six billion views on TikTok with its ‘Abuela Approved’ campaign, a viral hit that deepened its connection to younger consumers.

Why it matters 

TikTok boasts a large Gen Z audience that view short-form videos not only for entertainment purposes, but also for discovering new brands and discovering product information. Successful TikTok campaigns illustrate an understanding of Gen Z habits and how to cater to the granular needs of this demographic.

The details 

• El Pollo Loco had traditionally used channels like TV as part of a multi-generational marketing strategy.
• In 2020, the brand started using TikTok as a way to reach a younger audience that were engaged on the video-sharing platform.
• Launched in 2022, the ‘Abuela Approved’ TikTok campaign was focused around a comedic grandmother known as ‘Head Abuela in Charge’.
• This character voiced her opinions on a wide range of topics, but was consistent in her love for the items on El Pollo Loco’s menu.
• The campaign hashtag generated over six billion views.

The big idea

“We brought in the matriarch of all Latino families that can be quite a character and used her to create amazing content for our channels. It did exceptionally well for us, especially with a younger audience” – Gabe Alonso, El Pollo Loco’s VP of Digital Marketing, speaking at AdExchanger’s 2023 Industry Preview conference.

Mars boss defends purpose

Mars’ chief executive has defended the notion of purpose as being important to “responsible” growth and attracting talent. 

Why it matters

Mars’ confectionery brand M&Ms has been involved in a couple of manufactured “woke” controversies around its long-running cartoon “spokescandies” – one centring around their footwear, another on the alleged sexuality of one character – that led to the brand deciding to take an indefinite pause from the mascots’ use in its marketing (although they did make a cameo appearance in a Super Bowl ad).

While small-minded culture warriors might be celebrating a dubious victory in this particular battle, Mars isn’t walking away from addressing social and environmental issues in order to achieve what CEO Poul Weihrauch describes as “responsible” growth. He also believes this can help recruit new generations of employees. 

The CEO's view 

• That M&Ms Super Bowl ad campaign generated 25 billion online impressions, Weihrauch reports. “There’s lots of sales and it’s difficult to keep up with the orders.” 
• He believes that “quality companies are deeply invested in this [social and environmental commitments] and that younger employees, especially, want to see that happen.
• “[Associates] won’t stay with us if we don’t care about ESG or purpose or whatever we call it,” he said. 
• Mars will more than double its spending on its sustainability agenda over the next three years.
• Mars is looking to double sales over the next decade via organic growth and acquisitions.

Key quote

“It’s a nonsense conversation. We don’t believe that purpose and profit are enemies” – Poul Weihrauch, CEO at Mars Inc.

Sourced from Financial Times, Time, YouTube

[Image: Mars, Inc]

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