MediAvataar's News Desk
Without skilled people and the right processes, marketing technology will waste money rather than gain customers
Marketing technology has suddenly become both more important and more problematic. With the surge of online search and shopping in response to Covid-19-induced lockdowns, many companies are pushing their chief marketing officers (CMOs) to build up their digital customer acquisition while curtailing their spends on technology, media and staff.
The challenge in accomplishing these goals nearly always involves curbing the sprawling marketing technology that CMOs preside over. Marketing software is typically either procured and licensed, or built at a brand, market or divisional level. There is little governance over selection or integration with other systems in the organization. As a result, marketing groups often suffer from duplication of technical functions.
Other parts of the marketing organization may also have significant gaps in the technologies they need, such as making sure their display ads are actually viewable on approved publisher websites, bringing together a single view of a customer or having near-real-time access to marketing performance data tailored to specific roles within the organization. Given the ascendance of digital channels, combined with heightened competition from digital insurgents in most markets, optimizing the choices and use of marketing technology has become critical for reining in costs while increasing customer value during the pandemic.
For several companies in consumer markets, Bain & Company estimates that optimizing their use of marketing technology typically improves the marketing budget’s return on investment (ROI) by up to 27%. A global retailer, for instance, merged in-store purchase data with online browsing and purchase data to better understand consumer behavior. By incorporating this data into the marketing optimization process, the retailer boosted sales significantly.
While CMOs and other marketing executives consider ways to overcome the profusion of technology and harness it to work more effectively, they can tackle the problem by answering high-gain questions in three key areas; spending less money, increasing returns on advertising spends and leveraging technology and data to create new revenue streams.
Useful answers to these topics involve not just technology, but also a skilled staff deployed in processes that use the technology effectively to create a powerful experience for customers. Technology works best when it has the following characteristics:
Functionality to deliver a great customer experience
Integrated with data flowing throughout the system
Strong governance that meets the process, legal and privacy requirements
Measurement of advertising performance, including the efficiency of delivering ads; and
The ability to anticipate future shifts
Technology remains the foundation of digital transformation to reduce costs, improve ROI and tap new growth opportunities. But to make real strides, technology needs
Skilled people to steer it and the right processes to make it effective.
Written By Juerg Kronenberg, Partner at Bain & Company Middle East, Nikhil Raj, Expert Partner at Bain & Company Silicon Valley & John Helstrip, Director at Bain & Company, London
TUMI, the leading international travel, lifestyle, and performance luxury brand, launches the breakthrough TUMI Virtual Store to debut its Spring 2021 collection , delivering an immersive and enhanced omnichannel experience to customers in Asia Pacific and the Middle East.
Ushering in a creative new age of digital retail that connects fans with the brand like never before, the TUMI Virtual Store inspires customers to embark on a journey through thoughtfully designed interactive touchpoints. Guests can explore the Virtual Store’s life-like visual presentation to discover TUMI products via 360° 3D and AR implementations and shop the Spring 2021 collection. They can engage with shareable social photo moments at TUMI’s Magic Mirror and play Instagram and WeChat mini-games.
Further enhancing the overall TUMI O2O ( "Online to Offline" also "Offline to Online" ) shopping experience, the Virtual Store is connected to other TUMI shopping channels via its Chat & Shop function allowing for seamless customer movement to the point of purchase. Customers exploring the Virtual Store can easily connect with sales associates to ask questions and place orders, or via the connected local e-commerce websites. Furthermore, those visiting the TUMI physical stores in the region can explore the TUMI digital landscape via in-store kiosks, for an enhanced offline experience.
“The TUMI Virtual Store is an incredible milestone for the brand. For the last few years, we have been pioneering new digital experiences and looking to enhance and elevate the customer journey. Our new Virtual Store is part of this holistic approach to connect with customers wherever they are. Accelerated digitization and shifting customer habits brought on by 2020 have reinforced this direction and shown that we must continue to create exciting, meaningful interactions both in the physical and digital worlds. Through the TUMI Virtual Store and our Regional Livestream Event, we are excited to welcome fans to experience the latest innovation from TUMI and our new Spring 2021 collection,” says Adam Hershman, Vice President of TUMI, Asia Pacific and Middle East.
Anand Bhadkamkar, CEO India, dentsu, “2020 presented a monumental challenge to us – as individuals, business and society. It made us witness time and space in ways that many generations had only read about in textbooks or had heard of from aging bystanders of yester-history. Yet, I must reiterate that despite all the aching that this hailstorm of a year introduced into our lives, 2020 was also maleficently unique. It forced us into depths of insights that we could never have comprehended otherwise. It also reminded us of what the human spirit could eventually endure and the magnificent resilience that it is capable of. Dentsu is over-invested in digital. Of our 3000 people, more than 1800 are in our digital companies. Additionally, more than 50% of our revenue comes from digital at a time when the market average in India is still 10-12 per cent. We, at dentsu, expect 2021 to witness a colossal rise in digital advertising. We also recognise the need for a business intelligence report that can give directions toward which this industry is moving with ever-changing client demands and market scenarios. We look forward to your thoughts and opinions to help sharpen our approach towards this fast-growing industry as we strive to expand, together.”
1.The Indian advertising industry currently stands at Rs 56,490 crore and it has witnessed de-growth of 17.5% over 2019 due to the pandemic. The advertising industry is expected to make a come-back and will grow by 10.8% to reach Rs 62,577 crore by the end of the year 2021. Furthermore, it is expected to grow with a CAGR of 11.59% to reach Rs. 70,343 crore by 2022.
2.The digital advertising industry has witnessed growth in market size from Rs 13,683 crore by 2019 to Rs 15,782 crore by 2020, growing by 15.3% from the previous year. Digital media will grow at 20% to reach a market size of Rs 18,938 crore by 2021 and with a CAGR of 22.47% to reach Rs. 23,673 crore by 2022.
3.Television has the unparalleled reach in the media market and contributes to the largest share of media spends at 41% (Rs. 23,201 crore) in 2020. Followed by spends on digital (28%, Rs. 15,782 crore) and print (25%, Rs. 13,970 crore).
4.Currently, FMCG has the highest expenditure on advertising with a contribution of 20% (Rs. 11,554 crore) closely followed by e-commerce (17%, Rs 9,788 crore) and consumer durables (10%, Rs. 5,751 crore).
5.FMCG spends a large majority of their advertising budget on Television (64%) while Retail, Automotive and Media and Entertainment segments spend a large share of their advertising budget on Print. The biggest spenders on Digital media are BFSI (57%), Consumer Durables (45%), Telecommunications (40%) and E-Commerce (39%).
6.Digital is growing rapidly and the pandemic has propelled the adoption. Advertising spend on digital media has increased from a share of 20% in 2019 to 28% in 2020. It is further expected to reach 34% by the end of 2022.
7.Spends on digital media is led by social media with the largest share of 29% (Rs. 4,596 crore) closely followed by online video (28%, Rs. 4,366 crore) and paid search (24%, Rs. 3,725 crore). Online video has seen the fastest growth from a share of 22% in 2019 to 28% in 2020.
8.The rapid increase in mobile usage and internet penetration has led to 75% (Rs. 11,836 crore) of digital media spends on mobile devices. Majority of the online expenditure on mobile devices goes to online video 29% (Rs. 3,458 crore) and social media accounts for 29% (Rs. 3,429 crore).
9.People belonging to tier-II and tier-III cities have contributed the most to the growth of the digital advertising market. The pandemic fostered the demand for e-commerce purchases in these cities. Consumers have preferred to purchase from online retailers offering delivery at flexible timings while being cautious about safety and health during the pandemic.
10.The shift in habits and behaviour is evolving as the elder consumers are preferring to use cashless digital payment methods instead of cash transactions. The pandemic fuelled the adoption rate of digital in India coupled with the high consumption of digital video and the growth of regional content.
New research by WARC in partnership with Spotify Advertising finds B2B is coming of age as marketers find new opportunities
"Changing Channels in B2B" study finds work from home culture has amplified the voice of a new generation of B2B influencers in the tech and telco sectors
February 3, 2021 - Today, WARC, the global authority on marketing effectiveness, in association with the advertising arm of Spotify, the world's most popular audio streaming subscription service, released an analysis of B2B marketing within the technology and telecommunications sectors. The report looks at themes that B2B marketers in these industries are focusing on, and how they are planning to develop their marketing strategies into 2021.
The study is based on interviews with chief marketing officers from leading businesses in tech and telco, in addition to a survey of more than 330 B2B marketers within these industries based in 10 markets across the world. The data from this research, conducted in November 2020, were combined with WARC's global data, industry knowledge, examples and expert contributors.
David Tiltman, VP Content, WARC, says: "The shifts highlighted in this report makes the year ahead a real opportunity for B2B marketers - in tech, telco and beyond. Consumer habits have been disrupted. Communications are being rethought. There are new opportunities to reach end-users. It is ultimately a time when quick-thinking marketers can gain advantage."
Jorrit DeVries, Global Category Development Officer, Tech & Telco Vertical, Spotify, says: "Together with WARC, we've created a key piece of research for Spotify and other ad industry players to better understand what matters most to B2B marketers as their business needs shift and the complexity of the marketplace evolves. We'll be using the findings to help these marketers understand how digital audio can be leveraged to deliver impact and creativity."
The key themes outlined in "Changing channels in B2B" a report by WARC, in association with Spotify Advertising are:
1. The reshaping of B2B: Drivers of change
B2B marketing is undergoing a transformation. Having lagged behind B2C marketing in terms of multichannel strategy evolution, leaders in the industry have started to drive growth for their businesses by innovating and experimenting with their media choices, indeed 66% of respondents plan to increase their digital audio budgets in 2021.
COVID-19 has accelerated this digital disruption, depriving marketers of live events and in-person meetings and fuelling changes in decision-maker behaviour that had begun long before the virus took hold. This is a time of learning and discovery for B2B marketers, as they seek out new, progressive ways of reaching their customers across both live and virtual touchpoints.
2. B2B audiences are changing
With so many people setting up offices at home, the worlds of tech and telco have become consumerised like never before. Add to this the accession of millennials to senior roles within organisations, and you have a workplace where decisions are being made differently, forcing marketers to find new ways to adapt to these changing audiences.
83% of respondents agree that employees have a strong voice on tech and telco services, providers, or partnerships.
3. B2B marketers are exploring new ways to drive reach through channel planning
The dominance of digital marketing and the need to reach a more diverse audience have triggered a new approach to channel planning from B2B marketers. It is a time of experimentation and there is still a lot to learn, but the strategy has moved towards achieving a broader multimedia mix, introducing newer channels like audio and streaming.
50% of B2B marketers are experimenting with channels they have never tried before as they seek to drive reach.
4. The rise of creativity and brand-building in B2B
New challenges in engaging B2B audiences have inspired marketers to put more emphasis on building their brands, in order to provide a secure base from which their content can work harder and more effectively. More than 80% of respondents agree that they need to be more focused on building strong brands.
Creativity is flourishing in tech and telco B2B marketing, as businesses place a new significance on storytelling and finding relevant partners to deliver those stories in compelling ways. 51% of respondents are actively trying to find new ways to tell their brand story.
Havas Group India, announced that it is further strengthening its operation in India with a strategic joint-venture with Conran Design Group; a Havas agency with over six decades’ experience in building iconic brands.
As part of the joint-venture, Conran Design Group opens its third global office in Mumbai to add to successful businesses in London and New York. Conran Design Group Mumbai, with a dedicated team of 15 specialists, supported by Conran Design Group teams globally, will be a huge asset to Havas Group India as it works to deliver a more meaningful difference to its clients.
Headquartered in London, Conran Design Group is founded by renowned designer Sir Terence Conran 65 years ago. It is a design-led branding agency on a mission to help clients realise the value of meaningful design. Some of its clients include Danone, Shell, Rolls-Royce, Coca-Cola European Partners, Associated British Foods and Sottini among others.
The Indian team will be led by Geet Nazir, Managing Partner, Conran Design Group Mumbai, who comes with 18 years’ experience in New York and Mumbai. Most recently, Geet was with Tata Group’s Indian Hotels Company Limited (previously The Taj Group of Hotels), where she was driving strategic branding and brand marketing initiatives for its vast portfolio.
This joint venture will allow Havas’ clients to tap into Conran’s expertise in brand strategy, visual identity, branded environment, and packaging - a global design perspective with strong local relevance, while also providing Conran Design Group’s clients further access to Havas’ global network.
Conran Design Group is also creating a design innovation unit in Mumbai to research, pilot, and test new design ideas and to partner with local design institutions and colleges to nurture design talent - helping to support the development of the next generation of design influencers.
Rana Barua, Group CEO, Havas Group India said “We are very excited to join forces with Conran Design Group (CDG). This joint venture complements our aggressive growth strategy and our mission to create meaningful work for clients. CDG’s competitive advantage of building brand strategy with deep consumer insights will add an enviable strength to Havas Group's portfolio. I am delighted to welcome Thom and the team to the Havas Group Family.”
Thom Newton, CEO, Conran Design Group “I’m very excited about this partnership. India has vibrant creativity at its heart and rich design heritage. The forward-looking Indian consumer demands that global brands re-imagine their experiences and build a relevant local connection. This creates the perfect opportunity to test the impact that design-driven brand experiences can have to inspire, engage, and build long-term brand loyalty. We are confident that this joint-venture with Havas Group will help us become an even stronger identity and we look forward to a meaningful journey ahead, together.”