MediAvataar's News Desk
Innovation matters. In the consumer product realm, it can drive profitability and growth, and it can help companies succeed—even during tough economic times. On the opposite side of the sales counter, consumers have a strong appetite for innovation, but they’re increasingly demanding and expect more choice than ever before.
Around the world, more than six-in-10 respondents (63%) say they like when manufacturers offer new products, and more than half (57%) say they purchased a new product during their last grocery shopping trip. But success can be hard to come by. Brand competition is intense and shelves are crowded.
The Nielsen Global New Product Innovation Survey polled 30,000 online respondents in 60 countries to understand consumer attitudes and sentiments about the drivers behind new product purchase intent. It’s important to note that in the eyes of the consumer, not every product that’s new to them is new to the market. As such, for the purposes of this study, we defined a new product as any item a consumer has never purchased before.
Economists may have declared the end of the Great Recession nearly six years ago, but times are still tough for consumers around the world. In fact, more than three-quarters in Latin America (78%), two-thirds in Europe and Africa/Middle East (68%) and half in North America (50%) still believe they are in a recession. And these pervading recessionary sentiments may create a barrier to new product trial, as more than four-in-10 global respondents (42%) say economic conditions and recent world events make them less likely to try new products.
As a result, affordability tops global consumers’ list of reasons for purchasing a new product, but there are regional differences in the order of importance placed on this attribute. In Asia-Pacific, affordability is the third-most important reason for purchasing a new product, behind value and convenience. North Americans place affordability second on their list, behind novelty and tied with brand recognition. In Latin America, affordability is just slightly behind brand recognition as the reason for making a new product purchase.
When it comes to the new products consumers wish were available right now, products at affordable prices was the most commonly cited attribute across all regions—by a wide margin. Forty-three percent of global respondents say they wish more affordable products were available, 14 percentage points above the next-highest attribute. North America showed the biggest differential between the top two desired product attributes—20 percentage points between wanting products at affordable prices (44%) and wanting new food products (24%). Similarly, Latin America showed a 19-point difference between affordable products (60%) and the second- and third-most-desired product types, environmentally friendly and those made with natural ingredients (41% each).
“Consumers need to stretch their money as far as possible, and they’re looking for products that stay within a budget,” said Rob Wengel, senior vice president and managing director of Nielsen Innovation in the U.S. “Savvy manufacturers are those who don’t just sell their products at lower prices or on promotion, rather they build cost-cutting into the product development and design process. Cost-driven innovation requires letting go of traditional assumptions, and it starts with understanding what tradeoffs consumers will make when they can’t afford a product.”
Other findings from the New Product Innovation report include:
In-depth looks at the top regional reasons consumers try new products.
Developed vs. developing regional appetites for new products.
The effectiveness of free samples in new product awareness/trial.
56% of global respondents cite friend/family recommendations as sources of new product awareness.
New Products have cross-generational appeal, and aren’t just for the young.
Innovative cross-cultural agency the community at SapientNitro, was honored with the prestigious Press Grand Prix at the 62nd Cannes Lions Festival of Creativity for its “Never Stop Riding” campaign, created for the Buenos Aires Public Bike System. The campaign was also awarded two Gold Lions in the Art Direction and Illustration categories.
“To be awarded the Grand Prix out of almost 4,500 entries is an incredible honor”
“The Cannes Lions awards represent the pinnacle of creative achievement for our industry,” said Joaquin Mollá, co-founder and chief creative officer of the community. “This recognition is a testament to the creative courage born from a great relationship between the agency and the City of Buenos Aires.”
“The success of this campaign is emblematic of the tremendous political will behind the vision to transform Buenos Aires into an eco-friendly city,” said Marcos Peña, general secretary of the City of Buenos Aires. “As part of this effort, in just a few short years, Buenos Aires has already become one of the 20 most bike-friendly cities in the world.”
“To be awarded the Grand Prix out of almost 4,500 entries is an incredible honor,” said Jose Mollá, co-founder and chief creative officer of the community. “We are committed to diversity and bringing a global perspective to our clients, and so we are thrilled that a campaign that is performing so well with the people in Buenos Aires was created and produced in the U.S.”
“Never Stop Riding” brings awareness to Buenos Aires’ public bicycle system and its new automated system that includes an expansion of locations and hours of operation. The campaign is running in print and on outdoor billboards throughout Buenos Aires and is supported by advertisements on the wheels of the program’s bicycles.
To communicate the new 24-hour availability of the bikes, the campaign uses illustrations to portray the wheels of a bike as partners in a constant chase – a baby chasing a breast, a dog chasing its tail, moths chasing a light bulb, and a squirrel chasing a chestnut. Each ad incorporates a hand-drawn typeface for the tagline, “The Buenos Aires Public Bike System Now Runs 24/7,” further evoking the movement of a bicycle chain. View the ads here.
The campaign is credited with generating buzz around the ease and convenience of Buenos Aires’ public bicycle system – a program that revolutionized the city more than six years ago by creating not only more than 140 km of bike lanes, but changing the culture of how the city’s residents commute. By the end of 2015, there will be more than 200 bicycle stations throughout Buenos Aires.
“Never Stop Riding” was created by the U.S. team of the community at SapientNitro of which includes: Joaquin Mollá chief creative officer; Jose Mollá, chief creative officer; Fernando Reis, associate creative director; Marcelo Padoca, associate creative director; Fernando Reis, art director; Guilherme Nóbrega, art director; Marcelo Padoca, copywriter; Arthur D’Araujo, illustrator; Sebastian Diaz, group account director; and Daniel Gergely, account director.
The community at SapientNitro also won a Bronze Press Lion in the Fundraising, Donations and Appeal category for its cogent “Blood Donation” campaign, also for the City of Buenos Aires. The copy heavy print campaign, designed to increase awareness of the need for blood donations, highlights three cultural icons whose lives were saved by transfusions: Andy Warhol, Stephen King and George Lucas. All the ads feature a biographical story that starts off in black type, but at the point at which the person’s life was saved by blood transfusions, the color of the type turns to red. With all three icons, the campaign showcases that their most important work comes after this life-saving moment. The tagline “Give More Than Just Blood” evokes this sentiment. View the ads here.
The team at the community that created “Blood Donation” includes: Jose Mollá, chief creative officer; Joaquin Mollá chief creative officer; Ricky Vior, executive creative director; Tomas Duhalde, art director; Federico Diaz, copywriter; Sebastian Diaz, group account director; and Daniel Gergely, account director.
CIOs Should Maintain and Promote an Objective Understanding of the Real Capabilities of Smart Machines
The growth of sensor-based data combined with advanced algorithms and artificial intelligence (AI) are enabling smart machines to make increasingly significant business decisions over which humans have decreasing control, according to Gartner, Inc.
"As smart machines become increasingly capable, they will become viable alternatives to human workers under certain circumstances, which will lead to significant repercussions for the business and thus for CIOs," said Stephen Prentice, vice president and Gartner Fellow. "In the 2015 Gartner CEO and business leader survey, opinions were equally divided on this issue and indicate that business leaders are starting to take notice of the advances being made and more readily acknowledge that the threat to knowledge work is real."
Already the growing capabilities of automation and robotics have led to their increasing deployment in a wide range of industrial and business environments, which has prompted debate as to their impact on existing jobs in sectors such as manufacturing. "As smart machines become more capable, and more affordable, they will be more widely deployed in multiple roles across many industries, replacing some human workers. This is nothing new. The deployment of new technology has eliminated millions of jobs over the course of history," said Mr. Prentice. "At the same time, entirely new industries have been developed by those technologies, almost always creating millions of new jobs. Organizations must balance the necessity to exploit the significant advances being made in the capabilities of various smart machines with the perceived negative impact of resulting job losses."
During the next five years, Gartner predicts that smart machines will inevitably be relied on to make more decisions that are of growing significance to the business, raising the fear that they may become "unstoppable" or run out of control.
"The fear among many individuals is that the machines will 'take over,' start making decisions on their own and run out of control, posing a threat to individuals, society and even humanity itself," explained Mr. Prentice. "However, within the confines of currently known technology, the idea of machines attaining some level of 'self-awareness,' 'consciousness' or 'sentience' is still the stuff of science fiction. Even with the coming generation of smart machines, which actively 'learn' and will be able to adapt their actions to optimize their progress toward a goal, humans can choose to remain in control."
Additionally, the explosive growth of sensors, both physical and virtual, will provide smart machines with more "perception" and context of the physical world, enabling them to work more autonomously in support of business goals, leaving CIOs to highlight the risks and opportunities involved.
In the early days of computing, human operators "fed" the system with relevant data, thereby effectively controlling the machines' knowledge of the physical world. With the increasing availability of low-cost computing devices, increased connectivity, sensor networks and the Internet of Things, computing "complexes" are now collecting data about the physical world without direct human involvement (other than the initial launch of the system and sensor devices). The number of sensors, each collecting data in an automated fashion, is set to grow rapidly — Gartner estimates that more than 25 billion devices will be connected by 2020. It will create a massive increase in this background data collection.
"In effect, smart machines are now collecting information about practically every facet of human activity on a continual, pervasive and uncontrollable basis, with no option to 'turn off' the activity. The potential reputational damage arising from uncontrolled and inappropriate data collection is well-established and can be substantial," said Mr. Prentice. "CIOs should work hard to increase awareness of this issue inside the organization and ensure that the implications of this activity are fully understood and that appropriate controls, processes and procedures are established."
According to ZenithOptimedia’s new Advertising Expenditure Forecasts, in 2017 the internet will be the biggest advertising medium in 12 key markets, which together represent 28% of global adspend.
In four of these markets internet advertising will attract more than half of total adspend. Globally the internet will remain in second place, behind television, though the gap between the market shares of the two media will shrink from 11 percentage points this year to just four in 2017.
The internet was already the dominant medium in seven markets last year – Australia, Canada, Denmark, Netherlands, Norway, Sweden and the UK – and by 2017 will dominate another five – China, Finland, Germany, Ireland and New Zealand. The internet’s market share will exceed 50% in the UK this year, in Denmark and Sweden next year, and in China in 2017.
Mobile is driving growth in internet market share and global adspend
The main driver of internet growth is mobile advertising. Between 2014 and 2017 we forecast that mobile will more than double its share of global adspend, from 5.1% to 12.9%. Desktop internet’s share will remain stable, changing from 19.3% in 2014 to 19.4% in 2017, while every other medium will lose share to mobile. Mobile is also the driving force behind the growth of the whole market, and will contribute 70% of all global adspend growth between 2014 and 2017.
Global adspend to grow 4.2% in 2015
ZenithOptimedia forecasts that global adspend will grow 4.2% to reach US$531bn in 2015, and will accelerate to 5.0% growth in 2016, boosted by the 2016 Summer Olympics in Rio and the US Presidential elections. Adspend will then slow down slightly in the absence of these events, growing 4.3% in 2017.
We have reduced our forecasts for adspend growth in 2015 and 2016 fractionally, by 0.2 and 0.3 percentage points respectively. This is partly due to the strength of the US dollar against the currencies of many faster-growing markets, which reduces their contribution to the global total, and partly due to a weakening in Latin America.
Latin America remains key driver of ad growth despite slowdown
Latin America has been restrained by low prices for oil and other export commodities, and the weakness of the economy in Brazil, which shrank 1.6% year-on-year in Q1. We have reduced our forecasts for growth in Latin American adspend by three percentage points in 2015, from 11.4% to 8.4%. For our full forecast period, between 2014 and 2017, we have scaled back our forecasts for Latin America’s growth from 12.0% a year to 6.9% a year. Latin America remains one of the world’s fastest growing regions, and a key driver of global adspend growth. We still expect double-digit annual growth rates from Argentina, Uruguay and Venezuela, with Costa Rica, Mexico and Panama close behind, growing at 8%-9% a year between 2014 and 2017.
Fastest growth coming from Fast-track Asian markets
The fastest growth in adspend is coming from the region we call ‘Fast-track Asia’, which includes China, India, Indonesia, Malaysia, Pakistan, Philippines, Taiwan, Thailand and Vietnam. Their economies are growing extremely rapidly as they adopt best business practices and technology, while benefiting from the rapid inflow of funds from investors. This region is the main engine of global adspend growth, and we forecast it to expand by 9.1% a year between 2014 and 2017. The star performers are India, Indonesia, the Philippines and Vietnam, each of which we forecast to grow at double-digit rates over this period.
Eurozone continues to strengthen, though risks remain
The eurozone economy has strengthened over the past few months, thanks mainly to low oil prices and the European Central Bank’s quantitative easing programme. The eurozone is a big net importer of oil, and the drop in oil prices has acted like a tax cut for consumers, who have spent their savings elsewhere. The economic stimulus has fed through to the ad market, which we now forecast to grow 2.0% this year, up from our previous forecast of 1.6%.
Not all eurozone markets are in recovery yet, though most are moving in the right direction. We forecast a 0.3% decline in Finland this year, followed by 1.6% growth in 2016; for France we forecast a 0.4% decline this year and a 0.1% decline next year.
Greece had a strong 7.9% recovery in 2014, but the election of the Syriza government and its fraught negotiations with its creditors have brought this recovery to a halt. We forecast just 0.5% growth for Greece in 2015. Clearly there is a big downside risk to this forecast if Greece’s debt negotiations break down, resulting in default or eurozone exit.
“The internet is quickly establishing itself as the dominant advertising medium, and on current trends will overtake television by the end of the decade,” said Steve King, ZenithOptimedia’s CEO, Worldwide. “However, this refers only to traditional television viewed on TV sets. The amount of time viewers spend watching online video on their laptops, tablets and smartphones is increasing rapidly, and advertisers are shifting their budgets online to follow them. The spread of internet devices and new advertising technology will give advertisers new opportunities to communicate with and learn from consumers, and to do so more effectively than ever before.”
MSLGROUP, the strategic communications and engagement consultancy of Publicis Groupe, and the largest brand and reputation advisory network in Asia and Europe, took home three awards at the 2015 PRWeek Awards Asia including one Silver and two Bronzes.
Recognised as a benchmark in the communications industry, the PRWeek Awards Asia rewards clients and agencies for the best strategies and achievements that have transformed businesses and brands.
Charlotta Lagerdahl Gandolfo, Regional Business Director, MSLGROUP in Asia, said “Being recognized by the PRWeek Awards once again demonstrates our capabilities in delivering integrated solutions, grounded in insights, that generate real impact on our clients’ bottom lines. We are comitted to driving change in our industry and will continue to evolve to exceed our clients’ expectations.”
The winning campaigns include :
CeBIT India from ‘just a trade fair’ to ‘technology intelligentsia’ by 20:20 MSL, won Bronze for B2B Campaign of the Year for the integrated media advocacy campaign that cut across conventional PR tools to ensure the success of the first CeBIT in India.
Follow Me! The Dongfeng Citroën New Elysee Journey to Mount Everest by Genedigi MSLGROUP, won Bronze for Brand Development Campaign (product) for a bold idea that drove consumer engagement with user-generated digital content that was amplified through mobile marketing. A high-risk, high-reward camapign, it generated amazing sales results.
Crowdsourcing Brand Loyalty: Huawei Fan Celebration by Genedigi MSLGROUP, won Silver for Corporate Branding Campaign of the Year for its creative and strategic engagement with consumers which showcased the company’s transparency and openess to enhance brand loyalty.
These accolades follow a string of award wins for MSLGROUP this year, including a Gold Stevie in the Asia-Pacific Stevie Awards, Marketing Magazine’s Event Marketing Agency of the Year, Best Mobile Campaign from PR Daily Awards, and a Silver in Advertiser Magazine’s yearly awards competition in China.