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Marketing Through Volatility: Key takeaways from the most-awarded work of 2020
Marketing Through Volatility: Key takeaways from the most-awarded work of 2020
Many advertising and marketing industry awards were paused in 2020 but not all; a new WARC report, Marketing Through Volatility, uncovers insights behind some of the world’s most-awarded campaigns of last year – for creativity, media and effectiveness – and examines the strategies of brands that were notable in their response to the disruption of the past 12 months.
Marketing Through Volatility has been compiled using the WARC Rankings proprietary methodology.
Eight key takeaways
- Urgency can create a space for innovation
The urgency to respond to the events of 2020 created a space for innovation for some brands, which pivoted their creative ideas while remaining highly recognisable.
- Successful brands retain their authenticity through crisis
The most awarded brands have a strong sense of their brand, and they stay true to this in their messaging.
- Bravery and risk-taking is often rewarded
The most awarded brands are commonly brave brands: brands that take risks and challenge category norms.
- A strong brand purpose is sustained and consistent
2020 put a lens on the authenticity of brands and their overarching purpose. Many marketers are convinced that their consumers now prefer brands with a sustained, consistent purpose, applied across media.
- There is opportunity in continued brand investment
Whilst there’s been a shift towards performance marketing over the past 12 months, evidence abounds that brands that continue to invest in brand-building through recessions see success.
- Customer-centricity enables a rapid response to change
A focus on the customer has made it easier for brands to detect and respond to changes in consumer behaviour during and post-pandemic.
- 2020 highlights the need for scenario planning and agility
The most awarded work of 2020 highlighted the benefits of scenario planning and being agile enough to pivot in the face of challenge.
- Successful media strategies lie on a solid data bedrock
The need for solid first-party data strategies was accelerated by the pandemic, when the ability to target customers using connected and digital channels was paramount.
The full 2021 WARC Rankings – Creative 100, Media 100, Effective 100 – will be released in November to allow the inclusion of a full set of show results, including those that were postponed or cancelled in 2020.
Download a sample report here
Chinese consumers’ role in the future of global luxury
Chinese consumers’ role in the future of global luxury
China’s domestic luxury sector has grown during the pandemic, thanks to a combination of factors that may bring about long-term changes to the sector along with potential global repercussions.
Why it matters
During the pandemic, overseas spending by Chinese tourists on luxury items has been redirected into the domestic market, where online sales have also increased significantly. As western markets slowly reopen, brands have some big decisions to make on where they allocate their corporate spend and what the balance should be between the online and physical experience.
The details
- Sales of luxury goods in China were up 48% in 2020 to $53.5 billion, according to a report by Bain & Company and Tmall.com.
- Luxury businesses, such as LVMH, L’Oréal and Ralph Lauren highlighted China as the market powering their growth over the last quarter of 2020 and into 2021.
- Despite domestic growth, however, overall luxury spending by Chinese consumers was still down 35% last year due to travel restrictions.
- Luxury online penetration in China has risen from 13% in 2019 to 23% in 2020; much of this growth was driven by livestreaming.
- Domestic demand for luxury has also been driven by the transformation of southern China’s Hainan Island, which has seen big investment from Beijing, and has boomed as a tax-free spending hub.
Soundbite
“Brands that were able to offer an attractive value proposition of price balanced with a unique China boutique experience may be able to ultimately convince Chinese consumers to spend domestically, which can have an effect on global corporate allocation [of spending]” – Angelito Perez Tan, CEO of RTG Group Asia.
Sourced from WWD, Financial Times
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One in five fans use mobile apps to consume sports content
One in five fans use mobile apps to consume sports content
One-fifth (19%) of sports fans across the globe consume sports content on mobile apps, according to data from YouGov.
Why it matters
The increasing demand for short-form and interactive content has changed the way fans consume content, with mobile apps now playing a more important role. This trend is particularly strong in Asia Pacific.
Takeaways
- Vietnam is the country with the strongest sports consumption via mobile devices, with almost half (48%) of fans reporting to do so.
- Europe and North America report some of the lowest proportions of mobile sports activity in comparison.
Sourced from YouGov and WARC Data
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How the pandemic changed the US cannabis business
How the pandemic changed the US cannabis business
The coronavirus pandemic has forced many industries to adapt their business models, and the now-booming cannabis dispensary business is no exception.
What happened
Demand for marijuana in the 23 US states where it’s now legal soared as people turned to weed to ease their fears and anxieties during lockdown. Dispensaries started to get more competitive, boosting ad spend, bringing in buying online, pick-up in store and kerb-side pickup of orders, as well as virtual consultations, reports Digiday. In California, the industry was helped by cannabis dispensaries being deemed an essential service.
The details
- Consumer buying patterns changed too – 4/20 (the April 20 celebration of togetherness, peace … and marijuana), along with the Friday before Memorial Day have previously proved to be the biggest selling days. Last year neither were in the top five, with New Year’s Eve 2020 coming in at number one with sales worth $89.4m.
- The way customers consumed cannabis also seems to be evolving, with much higher demand for “edibles” – cannabis-infused food. One survey in September 2020 found 54% of users said they’d bought edibles in the last year, compared to 35% in 2018.
- Women were targeted in particular by cannabis brands, with almost 50% of 4/20 ad campaigns aimed specifically at them.
Soundbite
“It’s been quite a year. You couldn’t get a haircut, but you could buy weed” – Jeff Ragovin, CCO at cannabis-focused marketing company Fyllo.
Sourced from Digiday
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GARM establishes a benchmark for digital brand safety
GARM establishes a benchmark for digital brand safety
The Global Alliance for Responsible Media (GARM) has launched its first report tracking performance on brand safety across seven platforms, including Facebook, Instagram, Twitter and YouTube.
Why it matters
By aggregating existing platform transparency reports and adding in policy-level granularity, the new document creates a common framework that enables advertisers to assess progress against brand safety for each platform member of GARM. The new framework also drives simplicity, focus and highlights the use of best practice methodology.
Four learnings
- The number of content removals – at 3.3 billion – remains consistent. More than four out of five pieces of content removed stem from three GARM content categories – Spam, Sexual Content, and Hate Speech and Acts of Aggression.
- Removals of violating users are on the rise – there has been an average growth in account removals of more than 30%, with removals up to 14.9 million reported. For YouTube, this increase was 40%.
- Hate Speech and Acts of Aggression has been the focus of industry attention, and there is intensified enforcement across the metrics being shared. Facebook saw a reduction in prevalence for hate speech (down by 20% from Q3 to Q4 2020).
- Automated and machine learning methods for content assessment and removal have grown in importance across platforms. This appears highest in areas such as Terrorism, Violent Graphic Content, Crime and Harmful Acts, and Arms and Ammunition.
Sourced from WFA
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CTV video fraud on the rise in APAC
CTV video fraud on the rise in APAC
Last year’s sharp increase in APAC connected television (CTV) video impressions was accompanied by a rise in CTV video fraud and the sophisticated invalid traffic (SIVT) incident rate benchmark across the region, according to software platform DoubleVerify.
Why it matters
The speed of growth of CTV video fraud is expected to accelerate even more this year. DoubleVerify estimates that a scheme called SneakyTerra has spoofed over two million devices each day and cost unprotected advertisers more than US$5 million per month, based on an average US$20 CPM across CTV.
The details
- CTV video impressions in APAC increased by 5.5 times in 2020 compared to 2019.
- During the same period, the CTV video fraud and SIVT rate benchmark rose by 37% across the region.
- DoubleVerify detected nearly as many fraud and SIVT incidents from January to February 2021 as it did from January to May 2020.
Key insights
- SneakyTerra is highly sophisticated and dubbed ‘sneaky’ because of the way it masquerades as a legitimate impression.
- It operates by purchasing a real impression and then inserting impression trackers from multiple ads.
- Although only one ad is seen on a CTV device, impressions for multiple ads are generated.
Sourced from Doubleverify
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TikTok time: Hail the new kings and queens of social
As content creators on TikTok attract the attention of Gen Z and millennials and disrupt the world of marketing and media, brands need to consider how they can best leverage those creators’ extensive reach; Cassi Yang of Hepmil Creators’ Network looks at how.
Why it matters
TikTok’s quick turnaround time in content creation is disrupting media and making it an appealing medium for brands. And since the platform is relatively new, brands can still have first-mover advantage and create a connection with Gen Z and millennials.
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Three shifts in post-pandemic APAC: The hood, livelihood and community
The COVID-19 pandemic has transformed consumer behaviours and attitudes in APAC, but this has also created opportunities for brands that want to grow in the region.
Why it matters
Amid these societal changes, the region has experienced three major shifts that companies can tap.
Takeaways
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Is ByteDance set to become China’s most valuable internet company?
Is ByteDance set to become China’s most valuable internet company?
TikTok owner ByteDance is growing at a staggering rate and with no sign of slowing down as it battles rivals for dominance in multiple areas; some now see it as heading for the top spot in China’s digital realm.
The background
Created in a Beijing apartment just nine years ago, ByteDance is now one of the world’s most valuable start-ups, worth around $400bn, according to the South China Morning Post, which details some of the tech giants it is taking on:
- Social media and gaming: Tencent
- Local services: Meituan
- E-commerce: Alibaba
- Video: Kuaishou
How it’s winning
- Key to success are ByteDance’s algorithms, which pull in ever-greater numbers of China’s mobile phone users.
- ByteDance’s big advantage is its huge reach – its short video sharing app, Douyin, has more than 600 million daily users alone.
- Content-driven advertising is for now the company’s biggest earner – last year earnings are believed to have more than doubled to around US$37bn. In China alone, ad revenue reportedly reached around $27.2bn in 2020.
Soundbite
“There’s only so many ways to make money online. The big markets – games, e-commerce, ads – are far from being winner-takes-all. Traffic is king, after all, and if there’s one thing ByteDance has in spades, it’s traffic” – Matthew Brennan, China tech analyst and author of ‘Attention Factory: The Story of TikTok and China’s ByteDance’.
Sourced from South China Morning Post
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CTV impressions up 81%, driven by telecom, auto and CPG
CTV impressions up 81%, driven by telecom, auto and CPG
Connected TV advertising has continued to grow rapidly, with impressions up 81% year on year in March, and this has been driven by telecom, automotive and CPG advertisers. This is according to an analysis of data from omnichannel advertising platform Innovid.
Why it matters
Connected TV is proving attractive for advertisers as a way to combine the creative effectiveness of TV with audience targeting and exposure attribution. This is particularly true in the automotive and CPG categories, where over half of digital video impressions now come from connected TV devices.
Takeaways
- Advertising impressions on connected TV (CTV) devices from telecom advertisers rose 239% in March, with automotive and CPG impressions nearly doubling.
- WARC Data's latest figures show that online video investment has grown $39bn over the last five years.
Sourced from Innovid, WARC Data
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Consumer values shift for a post-pandemic world
Consumer values shift for a post-pandemic world
More than 70% of 18–34-year-olds said they are now trying new things and interacting with the world in different ways, compared to 54% of 45+ year-olds, according to a new global study.
Why it matters
According to The Value Shift Report, from strategic brand consultancy Hall & Partners, young people will define our values for decades to come.
Key findings
- Environmental concerns: Protecting the environment and working together towards a more sustainable future was a top priority and was ranked as the number one value (69%).
- Living for the now: More younger consumers value ‘now moments’ rather than planning ahead in what is viewed as an unpredictable future. Half are more focused on the simple pleasures in life and see excess as unnecessary overindulgence.
- Authentic activism: All generations expect companies to be consistent about the issues they campaign for and will hold them to account if they fail. And brands that campaign on an issue that really matters and create a difference in the world will be rewarded with loyalty.
- Safety first: There will be more cautious living and attention given to reducing risk in daily life. Brands will need to satisfy a changed desire within consumers for removing risk and feeling protected.
Key quote
“The future is being shaped before our eyes, sparked not just by a global COVID-19 health crisis, but by political dislocation, economic and environmental disruption and urgent demands for greater justice and equality” – Vanella Jackson, Global CEO of Hall & Partners.
Sourced from Hall & Partners
Google’s alternative to cookies runs into problems
Google’s alternative to cookies runs into problems
Plans by Google to do away with third-party cookies next year are looking anything but straightforward as important players seem not to like its proposed FLoC alternative.
Why it matters
Google’s FLoC (Federated Learning of Cohorts) will use an algorithm to examine users’ browser history and group them alongside others with similar histories to be targeted with ads. But privacy and legal issues look set to shake up the roll out. An estimate by McKinsey suggests the industry will have to find creative ways to replace as much as $10bn in ad revenue when third-party cookies go.
The details
- So far, reports suggest the browser makers Brave, Vivaldi, Edge, DuckDuckGo and Mozilla will not use FLoC, either by removing it from their software or by adding tools to block it.
- Wordpress says it will treat FLoC’s tracking technology as a security issue and may block it by default.
- Some believe FLoC’s current insistence that Chrome users must be signed in to their Google accounts may lead to problems with the European Union’s GDPR privacy rules. Google carries as much as 90% of Europe’s search traffic.
Soundbite
“We will not support the FLoC API and plan to disable it, no matter how it is implemented. It does not protect privacy and it certainly is not beneficial to users, to unwittingly give away their privacy for the financial gain of Google” – Vivaldi on Google’s Federated Learning of Cohorts.
Sourced from The Verge, The Register, McKinsey, Vivaldi
[Image: mename.net] _
Consumers want diversity in digital ads, but brands have work to do
In digital, as in other channels, ads are rife with under-representation of certain groups, and also filled with stereotypes, such as portraying older people as frail, according to quantitative and qualitative research from Facebook.
Why it matters
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Retailers explore experience strategies to suit post-COVID consumer needs
While many shoppers are keen to return to stores after the pandemic, their expectations are likely to have shifted. A new WARC Exclusive calls on brands to develop richer ‘experience strategies’.
In practice
These strategies should be framed around the four stages of a customer’s brand experience: consideration, purchase, ownership and relationship.
Some examples
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Manulife’s anchor for creating brave campaigns is strong customer insight
Even as the COVID-19 pandemic causes massive disruption to brands, the fundamentals have not changed for Manulife, the brand revealed at a recent Spikes Asia X Campaign. That means customer insight will always be at the core of its campaigns, supported by bravery and persistence when difficult or sensitive subjects are involved.
Why it matters
At the core of each Manulife campaign is strong consumer insight, gleaned from customer data, culture or consumer research, then executed creatively in a way that is simple, relevant and easily understood.
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Beauty deconstructed: How Asian beauty brands can stay ahead in the crowded US market
Asian players are shifting American beauty standards with their innovative approach, attractive packaging and growing consumer base, say TBWA’s Cecelia Girr, Skyler Hubler and Asai Meyer. But they are also facing fierce competition from new beauty brands vying for the average US consumer’s attention and money.
Why it matters
US consumers embraced Asian beauty brands for their skincare philosophy and traditions. But changing consumer preferences and strong challenger brands are posing new threats to Asian beauty’s allure.
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How brands can tap the immense potential of esports
Brands should consider investing in esports for its untapped potential, says EVOS Esports’ Allan Phang, because they will be targeting the next generation of consumers.
Why it matters
With 1.5 billion people in APAC tuning to esports, these competitive gaming events are an untapped market and represent huge potential for brands.
Takeaways
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Hotel searches record year-on-year growth in March
Hotel searches record year-on-year growth in March
Global hotel bookings and online searches recorded year-on-year growth in March 2021, for the first time since the start of the pandemic, according to data from the UNWTO (United Nations World Tourism Organization) Tourism Recovery Tracker.
Why it matters
Hotel-related online traffic has achieved growth for the first time in the past 12 months, while air bookings are still far from recovery. This might be a reflection of consumers’ preference to go on “staycations” or travel domestically. UK staycations, for example, are expected to hit a ten-year high and American consumers are most comfortable doing independent activities like road trips.
Takeaways
- Global hotel searches were up 18% year on year in March 2021, while bookings are up by 44%.
- South Asia is the only region experiencing growth in air reservations, rising 7%.
Sourced from UNWTO, WARC Data
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Cable companies muscle in on mobile – flexibility key
Cable companies muscle in on mobile – flexibility key
Cable companies like Comcast, Charter, and Altice are growing their share of the American mobile phone market reflecting increased competition often based on giving users flexibility over their plans that has become a key aspect of successful service businesses in the pandemic.
Why it matters
The Wall Street Journal’s report on the rise of cable firm’s mobile businesses reflects the reality of these TV, Wi-Fi and landline providers struggling to keep customers on their books. However, with a lot of mobile browsing (around 60%) now done on Wi-Fi at home, cable firms are at slight advantage to wireless carriers who they can undercut. But flexibility - one interviewee changes his allowance monthly depending on what he will use – is likely to be a key hangover from the pandemic, even in low-cost travel, auto, and now cellular, where the terms of competition have changed.
Details
- Cable companies are now looking to garner profits from their mobile businesses.
- While the scale of wireless carriers is nearly 50 times that of cable firms’ mobile businesses, they are being undercut by half in some cases.
- Still, market share remains in single figures and any significant gains will ultimately lead to large infrastructure costs.
Bottom line
With five million Americans now buying their mobile allowances from cable companies, following relatively young investments (the oldest, Comcast, began a mobile business in 2017), convenience is clearly important but how the cable firm’s fare as lockdowns ease will be key.
Sourced from the Wall Street Journal, WARC
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APG reveals planners’ experiences in lockdown
The Account Planners Group’s recent survey delves into how the experience of the discipline in the enforced remote-working world under lockdown restrictions, which have boiled away much of what made the job enjoyable and inspiring
Why it matters
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