27 January 2023 10:55

MediAvataar's News Desk

MediAvataar's News Desk

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Thursday, 06 August 2015 00:00

Meaningful innovation makes the difference

My recent post titled, “Getting realistic about the odds of marketing success” sparked a couple of interesting comments. Take, for example, this quote from a comment by Shann Biglione,

“If marketers spent more time influencing salience rather wanting to be seen as innovation junkies, we would have better marketing.”

Some of Biglione’s previous comments make it clear he is a big proponent of Professor Byron Sharp’s view of the marketing world, but is he correct in making this assertion?

One of the reasons I wrote the previous post is because I believe that Sharp’s “rules of marketing” hold good when the status quo rules. Every brand is seeking to improve the probability that it is purchased, and a state of dynamic tension or stalemate is reached where no one brand wins big. Success all comes down to how well you play the existing game. Under those conditions, improving salience is a key growth driver. Once this state is reached the stalemate can last for years (in my analysis 45 percent of categories saw no significant change the course of five years).

The obvious conclusion is that under those conditions marketers should spend more time influencing salience than worrying about innovation… except that if you do not worry about innovation then someone else may identify an opportunity and your brand will get disrupted (along with others).

Take the example of when Coca-Cola launched I LOHAS bottled water in Japan. The brand became the number one mineral water sold in Japan in just six months and undermined several well-established brands. No doubt those brand’s marketers did not think there was much opportunity for innovation in a familiar and growing market.

Coca-Cola’s research revealed that, while Japanese consumers wanted to do something about environmental issues, they admitted that their behavior had not changed. Thin and lightweight PET bottles provided consumers of Coca-Cola’s I LOHAS the chance to create a ritual out of twisting the bottle, and offered them the opportunity to choose a brand with a smaller carbon footprint, thereby demonstrating their commitment to the environment.

The marketing team also turned what had been a negative into a positive: rather than publicizing the qualities of a single source like the French Alps, I LOHAS is promoted as coming from seven local sources around Japan. The BrandZ data for 2012 suggests that the brands which suffered most from the launch of I LOHAS were the premium imports like Evian and Volvic.

If by “innovation junkies” Biglione is referring to innovation for innovation’s sake – the desire to have something new to say - then I would have to agree with him. However, there is always the risk that if you do not continually seek meaningful and differentiating innovation and launch it effectively then your brand risks being sidelined. Once again, the answer is not an either/or, it is both: you need to both seek meaningfully different innovation and grow your brand’s salience at the same time.

Can you think of any similar examples to I LOHAS? Yes, Apple, but what other ones come to mind? Please share your thoughts.

 

Authored by Nigel Hollis,Executive Vice President and Chief Global Analyst at Millward Brown

Source:Millward Brown

The average amount of time day people will spend consuming online video each day will increase by 23.3% in 2015 and by a further 19.8% in 2016, according to the Online Video Forecasts, a new report by ZenithOptimedia in conjunction with Newcast, ZenithOptimedia Group’s global branded content network.*

This growth in video consumption is being driven by the rapid rise of smartphone and tablet penetration across the globe, together with the resulting changes in consumer behaviour. Video consumption on mobile devices (such as smartphones and tablets) is forecast to grow by 43.9% in 2015 and 34.8% in 2016. Meanwhile, video consumption on non-mobile devices will continue to grow, though at more moderate rates, increasing by 9.5% in 2015 and 6.5% in 2016.

ZenithOptimedia expects mobile to become the main platform for viewing online video next year. In 2012 mobile devices accounted for 22.9% of time spend watching online video worldwide. By 2014, this proportion had risen to 40.1%, and we expect it to reach 52.7% in 2016 and 58.1% in 2017.

Total number of regular linear TV viewers to start declining in 2016

ZenithOptimedia predicts that the number of people regularly watching traditional, linear TV will peak this year, and will start to decline for the first time in 2016. We forecast that the number of regular linear TV viewers will rise 3.1% in 2015 but then shrink by 1.9% in 2016 and 0.9% in 2017. As we reported in our Media Consumption Forecasts 2015 report (published in June), the amount of time people spend watching linear TV has been in slow decline for several year; we now predict that next year the number of viewers to start to decline as well.

The number of regular linear TV viewers has been in decline in France and Russia since 2013, in the UK and the US since 2014, and is expected to start to decline in China this year. The decline of linear TV viewing is in direct correlation with the increasing quantity and quality of content available online, both from short-form platforms like YouTube and long-form platforms like Netflix. ZenithOptimedia forecasts that the number of regular online video viewers will increase by 5.8% in 2015, 5.1% in 2016 and 5.3% in 2017.

The number of regular online video viewers is increasing at double-digit rates in 12 of the markets included in this report, including in major markets like China (27.2%), France (50.0%), Germany (27.5%) and the US (12.3%).

Advertising expenditure on online video will soon account for an eighth of total internet adspend

Online video’s share of global digital adspend is rising rapidly: it was 8.8% in 2012 and 10.2% in 2014; by 2017 we expect it to rise to 12.8%, an eighth of all internet adspend. Online video is the fastestgrowing category of internet advertising: we forecast it to grow by 28.9% to US$16.1 billion worldwide in 2015, followed by 22.5% growth in 2016 and 19.7% growth in 2017, when it will total US$23.7bn.

The US online video market is by far the largest: US$8.5 billion in 2015, 52.9% of the global total, although we expect its share to drop to just below half of the global total – 49.9% – in 2017. The US also tops – jointly, with Italy – the list of markets with the highest proportion of total internet spend going to online video (16.5% each in 2015), followed by Taiwan (15.8%) and Latvia (13.0%).

Mark Waugh, Global Managing Director, Newcast, said, “Consumers all around the world are rapidly embracing online video, because it offers them a near limitless array of engrossing content. Some of the keenest users are the young, affluent viewers who are hardest to reach on television. Brands are finding online video a particularly effective way to reach these valuable audiences, not just with advertising, but also with branded content; content that can inform or entertain consumers in a deeper and richer way than is possible with short, interruptive ads.”

 

*Note that figures for video consumption and number of viewers refer to the 40 key markets covered in this report. The figures for online video adspend are global.

BBC Worldwide has announced its first VOD deal in India.  The deal, with the leading direct to home provider (DTH) , Tata Sky comprises of  SVOD and TVOD services and gives subscribers in eight metros in India,  access to the best of the BBC’s drama and comedy via ‘BBC On-Demand’, a branded property on Tata Sky’s platform. Viewers can now also access it online via their TVs, PCs, tablets and mobiles.

Programmes that will be available on the service include Luther, starring Idris Elba, who won a Golden Globe for his role as a brilliant but emotionally impulsive murder detective;  The Honourable Woman starring Maggie Gyllenhaal who won a Golden Globe for her portrayal of a powerful businesswoman haunted by events from her past in a thriller set in the Middle East; and Burton and Taylor, based on the legendary acting duo, Richard Burton and Elizabeth Taylor  starring Dominic West  and  Helena Bonham Carter. Kickstarting the block with a classic hit Yes, Prime Minister, contemporary comedy, Citizen Khan and an endearing drama, Being Erica.

“In a study commissioned by BBC Worldwide earlier this year, we found that quality of content,  British humour, and a love of original British dramas were the top reasons why people, including Indians, enjoy British television programmes,” said Myleeta Aga, SVP and GM of BBC Worldwide in India.  “We are very excited to be working with Tata Sky to bring these award winning and high quality programmes, many never before seen in India, to Tata Sky’s subscribers, where they can access them anytime, anywhere.”

“We are very pleased to be partnering with BBC Worldwide to launch BBC-on-demand,” said Paolo Agostinelli, Chief Content Officer at Tata Sky. “Viewing habits and customer needs in the industry are evolving as fast as ever. We are committed to remain the best choice in the country when it comes to premium entertainment, which means we must be able to offer top branded content and the best viewing experience, including increasingly popular time-shifted and device-shifted binge viewing content. We are confident that this is only the start of a very fruitful relationship with BBC”.

As a market leader, Cadbury Dairy Milk has driven category growth by being a 'catalyst of joy’. Apart from the core range, the various flavours of CDM (Fruit & Nut, Crackle, Roast Almond) too have historically performed well. With the launch of two limited edition variants; Black Forest and Coffee Almond, this was an opportunity to build momentum and drive further growth.

With friendship day around the corner, we wanted to celebrate the wonderful variety of friends who bring joy and add that special flavour in our lives, just like Cadbury Dairy Milk's range of flavours.

Prakash Nair, Senior VP and Neville Shah, Group Creative Director, Ogilvy & Mather: India has an emotional relationship with CDM. To India, CDM is more than just a chocolate. The challenge was how to present the multiple flavour offerings from CDM and build on the emotional bond. Friendship Day which is coming up in August, presented the right backdrop to land this offering. It was simple, really. Because if we look at our own lives, we all have different friends and each one adds a special flavour to our lives. The idea just simply fell in our lap.

Prashant Peres, Director – Marketing (Chocolates), Mondelez India: For many years now, Cadbury Dairy Milk has represented a plethora of emotions, from shared values such as family togetherness, to shared good feelings and collective joy. This Friendship Day, we want to celebrate another very important part of our relationships – our friendships. Just as every friend add a special flavour to one’s life, the variety of Cadbury Dairy Milk flavours like Original, Fruit & Nut, Crackle, Roast Almond and our new limited edition flavours – Coffee Almond & Black Forest will add a special flavour to this day. Our new television commercial also supports this thought.

This film has been produced by Remarquer Films and directed by Vikramaditya Motwane, an acclaimed film director and screen writer. His work connects to the pulse of the youth and brings alive the story in an engaging manner.

CREDITS:

Creative Agency: Ogilvy & Mather, Mumbai

Brand: Cadbury Dairy Milk, Mondelez India Ltd

Creative: Neville Shah, Ashish Naik, Aarti Srinivasan, Manas Thorat

Account Management: Prakash Nair, Neha Shah, Rima Wadhwa

Planning: Ganapathy Balagopalan, Jasmeeta Agarwal

Production House: Remarquer Films

Director: Vikramaditya Motwane

Producer: Arya Menon

CMO Council Strategic Brief Reveals Only 5% of Marketers Report More Confidence In Ad/Media Agencies; 72% Will Seek New Partners To Better Exploit Data & Digital

Marketers are looking well beyond their traditional advertising agency base for domain experts to drive marketing performance and handle exploding data, digital migration, channel fragmentation, and a more diverse, multi-cultural consumer base.

A new strategic report from the Chief Marketing Officer (CMO) Council and Ebiquity – entitled “The Path Forward: Marketing’s Outlook Into The Digital Future” – suggests that as budgets increase to fund digital marketing campaigns and more personalized customer engagement, marketers now need additional expertise in data analytics, content creation and channel proliferation to improve ROI.

According to research from the CMO Council, based on a survey of 276 marketers in the first half of the year, there’s a new focus on finding high performance marketing partners with specialized knowledge and business acumen. An overwhelming 83 percent of clients surveyed are looking for unique skill sets and specialized capabilities not found in most ad agencies, or media buying firms.

When asked to identify who marketers consider to be part of their marketing performance partner group, few (if any) traditional holding companies, advertising firms or media agencies made
the list. Marketers are instead looking more to solution providers (once only seen as sources to enable technology and automation platforms) as their go-to sources for performance improvements and solution partners to tackle the biggest challenges facing marketing today

When it comes to the marketing organization’s ability to address critical marketing challenges in 2015, survey respondents gave negative reviews in three essential areas. These included:

·         Managing the data explosion (only 30 percent said well or very well)

·         Analyzing data to create personalized experiences (just 29 percent said well or very well)

·         Overcoming financial restraint and demonstrating ROI (less than 40 percent said well or very well)

While 60 percent of survey respondents are spending more than $10 million annually on media buys, only five percent of participants say they are much more confident in their media or agency partner’s performance. In fact, marketers are looking to apply far more stringent and taxing ROI thresholds on their media and agency partners to maximize return. One marketing leader shared that as digital evolves they must ensure that return on investment and return on advertising investment are held to higher standards.

“Our agencies and partners are absolutely different than they were even one year ago,” commented one marketing leader. “We have tripled our digital budgets compared to two years ago, so we are working to protect that. Our greatest areas of investment today are actually going to build our digital infrastructure and our talent, so the agencies and partners we have now must be different as we look to address things like data and shopper behaviors.”

“What this brings to the surface is an even more heightened need to get the highest levels of performance and output—not just from the marketing organization, but also from the external agencies and marketing performance partners employed by the organization, explained Liz Miller, Senior Vice President of Marketing at the CMO Council. “CMOs are frustrated by a lack of visibility into partner performance, questioning everything from budgets to the realities of click fraud and paybacks.”

“Marketing is at a crossroads, and now is the time for agency partners to work even harder to meet the expectation for performance and creativity,” said Nick Manning, Chief Strategy Officer for Ebiquity, a leading marketing analytics specialist. “This has created an interesting phenomenon of global marketers placing their old agency accounts up for review – calling everything from performance to contract structure into question.  Marketers recognize that the world has changed, and they’re looking for partners who can unlock the new communications landscape in all its manifestations while being responsible, professional business partners. Now is the time for agency partners to give marketers exactly what they want…and what the customer needs.”

Powered By MAXIMESS

We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…