“Since the beginning of radio, the broadcaster has been interested in how the owner of a receiver reacts to the programs presented over the air. Some of the questions to which the broadcaster, whether he is an educator or advertiser, is anxious to secure the answers are as follows:
When does the listener use his receiver?
For how long a period does he use it?
To what station or stations does he listen?
Who listens (sex, age, economic and educational level)?
What does he do while the receiver is in operation?
What does he do as a result of the program?
What are his program preferences?
—Frank N. Stanton (1935)”
Frank Stanton, who later became president of CBS, wrote those words in his doctoral dissertation. Little has changed since that time. The media has undergone great transformations, but the basic research question—a need to know the audience—has been one of the most enduring features of the media industry.
The need for measuring audiences online has been a recent trend in our country. Once the domain of techies, it is fast became a need for marketers and advertisers for evaluation of their digital spends. Ever since the inception of internet in Pakistan, there have been multiple challenges to address the issue of measurement. The biggest challenge namely being that the internet is HUGE and the rapid growth that it has seen in Pakistan renders any assumption about the data gathered of its size, pretty much useless.
The second problem we had been facing since inception of the net has been to chart the growth in subscribers and the services they subscribe to. With exponential growth any information regarding visitors access is rendered useless with the introduction of new services and changing tastes online due to new users. This is a challenge even more so when we think in terms of the fact there are no geographical boundaries on the net. Thus how do we define ‘access in Pakistan’.
Third and not the least are the lack of standards and impartial definitions that still continue to create measurement problems in Pakistan e.g. just over a decade ago the standard on which audiences were measured was HITS (the number of client (browser) requests) to a ‘website’ (after all Facebook wasn’t around then). This was a reasonable method initially, since a web site than often consisted of a single HTML file. However, with the introduction of images in HTML, and web sites that spanned multiple HTML files, this count became less useful, since each client (browser) would now send hundreds of hits on every page load.
These problems are still present to date and attempts to measure audience of Pakistani online advertising campaigns or digital platforms have not been consistent or transparent enough to provide reliable standard metrics. Understanding how well your brand is doing is about more than clicks and page views. It’s about the audience and that is where the troubles start. Take the metric of ‘new visitor’ e.g. there is really no such thing as a new visitor when you are considering a web site from an ongoing perspective. If a visitor makes their first visit on a given day and then returns to the web site on the same day they are both a new visitor and a repeat visitor for that day. So if we look at them as an individual which are they? The answer has to be both, so the definition of the metric is at fault.
Online measurement methodologies in Pakistan also have a problem on how the data is gathered. One way e.g. is through reading cookies (small text files saved on computers with unique individual IDs) which gathers data on the user from site to site. This only works on ‘persistence’ basis. When the user deletes this cookie from the browser, the user will appear as a first-time visitor at their next point where the cookie is read. Without a persistent and unique visitor id, conversions, click-stream analysis, and other metrics dependent on the activities of a unique visitor over time, cannot be fully accurate. This approach also does not take into account that the user doesn’t just consume digital “cookies”. They’re a shopper, a home maker, a tweeter or a power texter, the process which misses the audience completely and looks at the trees for the forest.
With over 10 million broadband users in our country more and more people are now viewing their favorite programs, browsing information on websites, socializing via networks on digital screens & platforms such as PCs, tablets and mobile. With this growth in digital audiences, there has never been a greater need to profile and provide accurate and reliable data to clients through modern measurement techniques. Advertisers, agencies and marketers have grown used to the regulated and reliable measurement of ‘traditional’ media, and they now seek the same standards from digital media when it comes to measuring the scale and behavior of online audiences, one that provides for a consistent, reliable approach for validating their ad campaign.
Thus whatever standards we implement in our industry, at the heart of the audience measurement should be an understanding of consumer behavior which not only need to be holistic it should also analyze consumer behavior and trends, advertising effectiveness, brand advocacy, social media buzz and more to provide a 360 degree view of how consumers engage with online media.
Different approaches exist worldwide to measure audiences. The survey method is still a popular method though one can never be sure of the sample’s authenticity. Another approach followed by online research companies worldwide combines representative, people-based panels with, tag-based measurement to deliver a holistic view of the digital universe and its audience. The representative panel offers deep insights across demographic characteristics of Internet use, while data collected through tags placed on participating publishers’ pages provides measurement of the content consumed tracking their demographics, web visiting, online and offline transactions, search behavior, video consumption and ad views. The result is a Total Internet Audience metric that offers a sophisticated approach to understanding consumer behavior and provides comprehensive digital media measurement across all devices and locations, including mobile devices, tablets, secondary PCs and access points outside of home and work locations. This problem with this approach is that it completely misses niche content and is highly skewed towards what is popular. Other approaches use a mix of impressions, unique reach, frequency (how many times a person saw the ad online), Testing of different creative and tie in with incremental sales.
The first companies to take on Internet audience measurement had been firms with an expertise in estimating computer usage (more Google Analytics) rather than mass-media consumption. However as the media permeates more in our lives and as the new forms of media become live especially mobile, so will the content consumption and behavior of our audiences change even more. Thus from a web based landscape that once required Internet users to visit specific destinations for content will evolve to one in which content is pushed directly to consumers. In order to uncover the size, growth, composition and value of these distributed multi-channel audiences, audience measurement technologies will have to keep pace. Sadly we are not even at the first phase yet.
Pakistan has traditionally always been a nation with strong social support systems rather than institutions. Even for things as simple as schooling or buying a house, we seek after the opinions and recommendations of our own and extended family and friend networks rather than depending on external reviews or peers.
Over the last few years however this system has seen a gradual shift especially in the upper income segments. As technology has permeated into our lifestyle, the increased exposure and information flows has resulted in making judgements based more on the recommendations of strangers and experts than just existing peers. The increase in more and more people shifting to nuclear families as well just amplifies this trend further. To cater to this sophisticated audience, a growing plethora of classified advertisements sites are springing up in the anticipation of this growing market of the future.
Globally a $100 billion business, Classified sites are the new form of how consumers and businesses or more appropriately sellers and buyers find each other. Whether individuals or businesses are looking for a used car (pakwheels.com), a new employee (rozee.pk), a place to sell their mobile (hafeezcentre.pk) buy a plot for investment or their new home (zameen.com), or even find a partner (shaadi.com), the first stop is increasingly becoming the Internet to sites such as these and more. The appeal lies in the convenience and ease of use such sites provide with powerful search capabilities, more personalized “push” services such as automatic ad alerts, more timely and up-to-date listings and features such as photos, video, and sound clips in online ads. Best of all they are FREE!
In some aspects, the evolution of the online classifieds in Pakistan is unique from its global counter-parts. Pakistan has seen the rise of vertical sites i.e. specializing in one area such as jobs, real estate and matrimonial first unlike say US where the first and still biggest classifieds site is Craigslist, a horizontal site specializing in many categories simultaneously. Secondly, unlike the west, where online classifieds have taken business away from newspapers, online classifieds in Pakistan have grown the overall market. During this time even the print classifieds have grown substantially. This is comparable to our telecom markets where the fixed lines though have been growing gradually, whilst the mobile market has shot through the roof improving tele-density significantly. The future however is mobile and similarly, the online classifieds industry will ultimately cross the print classifieds through the sheer reach, flexibility, cost effectiveness and ease of use for both advertisers and searchers.
Classified sites are the ideal web 2.0 business for a country like Pakistan for unlike Ecommerce models based businesses such as EBay or Amazon where the transactions are completed online, users never buy directly from these classified sites thus our limited infrastructure and payment gateways do not restrict the growth of these online business. Instead, users to these sites use the service to look for best offers and get in touch, while transactions are conducted in person or by phone. The sites benefit from advertising revenue and some paid listings for ‘Featured’ ads. Whilst numbers of the size of the market and revenues are harder to come by, leading the traffic race is OLX with 2.2 million unique users every month in Pakistan. Local sites such as Pakwheels, which deal mainly with second hand cars, claim 15 Million Page views in a month and 150,000 registered users. Zameen.com claims over 180,000 unique monthly visitors and 10,000 site listings a month.
“The market is interesting because of the potential – Pakistan is a huge market in terms of sheer numbers There are roughly 20M Internet users in Pakistan today, and we believe that this number will grow substantially over the next decade. So there’s definitely a big potential in the Pakistani Internet market. We believe that a free, quality classified site like dekho.com.pk is a service that most of the Internet users in Pakistan will want to use”, said Nils Hammar, CEO at dekho.com.pk, one of the pioneers of classified sites in Pakistan.
The launch of Dekho.com.pk since November last year is interesting because this is a horizontal site, much like OLX or Locanto in Pakistan and amongst a growing number of foreign horizontal sites investing in the future of this country and this market. Even with local players, also the market is shifting from vertical category sites to horizontal category sites. Even the players who were earlier in one category have launched other verticals or their own horizontal sites e.g. Pakwheels have launched naitazi.com and tringtring.com, verticals for general goods and mobile phones in Pakistan.
The trends and the factors governing classified ads markets support their assumptions. There is a substantially large numbers of micro and small entrepreneurs who are increasingly looking at advertising options that are free or low cost to market their businesses, services or products online. Online classifieds provide them with a local as well as a national reach and like we mentioned it’s free. A site like dekho.com.pk already claims 50,000 listings in a span of few months.
Classifieds online is definitely evolving but it needs a critical mass. Pakistan’s online industry is in the nascent stages. The overall internet population in Pakistan is limited. Even though it is said to be around 20 million, a person accessing Internet at least weekly is not more than 5-8 million (estimated). Out of this, people looking for search based information would be 2-3 million. This is not a critical mass when compared to US or other developed markets. Secondly, there is a problem of information hoarding e.g. the real estate brokers thrive on their knowledge of whose buying and whose selling and would not part from this information easily. However even with these challenges, the number of classified listings and the audiences would increase substantially in the next 3-5 years because of two things:
1. Pakistan is an emerging market growth with both GDP per capita and online media consumption growing at a good pace. The increasing salaries, more disposable income (many times due to both partners working), increased choice of goods has ensured that users are changing their laptops, PCs and cars faster than before. 50% of mobile especially gets changed within 6 months of purchase. These trends are resulting in a spurt in online listings. People are selling everything – right from washing machines to laptops and even air conditioners. Currently the household in Pakistan which wants to sell items doesn’t have any option offline except the people they know. Hence, online classifieds sites are providing these solutions.
2. Sellers are not online, while buyers are all over the Internet. How many apartment landlords are willing to put up their rental ads on a website? Infact how many landlords are Internet savvy in the first place? However as awareness about online classifieds increase, this will change and more people will join in the marketplace. Online classifieds currently stand to become the trade portals of all C2C transactions in Pakistan and fill in the huge gap between buyer knowledge and sellers disadvantage.
The future for these markets look bright. Internet penetration in Pakistan has been constrained because of broadband and PC penetration where as Mobile penetration has been explosive. People are beginning to realize the ease of access of Internet through their mobiles and in many cases they are having their first exposure to internet through a mobile handset. Online classifieds on Mobile are gradually gaining traction and with the rapidly growing mobile internet users, it could become the largest chunk soon.
“A great mobile service is a must as the Internet usage goes mainstream. We have a mobile site today on dekho.com.pk/m that is being used by all kind of mobile devices. As the market grows we will add more options for mobile users. The future looks promising. We have a lot of belief in Pakistan and the Pakistani Internet market and we want to be a part of the progress as the market grows. So far, the response we’ve had from our users has been great, so I really believe dekho.com.pk will bring value to the Pakistani market”, said Hammar.
One thing is for sure, no matter how the classifieds market will look like in the future, more Internet users mean better services being developed, and better services in turn attract more Internet users. Hopefully we’re in the beginning of this positive spiral where it’s hard to imagine 5 years from now a better way to sell our cars, buy our houses or even find our partners for life.
The creative brief is your roadmap. Your Sherpa. Your guide to the buried treasure. The creative brief is the contract between the client and the agency and between the agency account team and the creative team. It spells out in inspiring terms exactly what is that needs to be produced to solve a specific business problem.
Yet it is either treated like a piece of literature with an unending number of pages or an uninspiring piece of paper with check boxes to be filled out. There is also a problem of inconsistent understanding of how to develop and use the brief. Usually the account team does not think about adding value on top of what the client provided. The creative brief is developed in silos and this creates disconnect between the strategy, account management and creative teams. Given that the quality of the final work depends on the brief (Garbage In is Garbage Out) there needs to be a shift in the way we approach the creative brief.
To improve the briefing process, PAS recently hosted a one-day training workshop ‘The Client Brief – perfecting the art!’ on February 1, 2012 at Marriott Hotel, Karachi. The workshop was conducted by Sunil Gupta, a Master Trainer and a veteran of Indian advertising with 28 years of a wide range of experience across diverse brands, consumers and markets.
The new brief is a growing testament to the availability of hyper-choice in an extremely cluttered marketplace where traditional differentiation is no longer enough. The creative brief now is no longer just about the document. It’s about the thinking behind it and the ideas that comes after it. “I want to expand the definition of the brief from that piece of paper in which you put down that I want a 30 second Tvc and two print ads to this is my problem and I’m looking for a communication solution part of which can be advertising. Can you come up with ideas that create customer delight”, evangelizes Sunil Gupta. “The customer has to say WOW!” He continues, “Word of mouth now is very critical and that is created by experience. Now you have to say as your communication brief or engagement brief, what is the experience we want to create for our customers and can our systems support those experiences. Therefore internal communication and training becomes as important as communication and advertising. That is the point to create today. Your entire company has to be aligned around your brand. This is a question of willpower and discipline. You can have the best advertising and it still might not meet objectives because the product experience is damaging. Thus advertising is just one part of the strategy today”, said Sunil Gupta.
Muhammad Shoaib Baloch, Creative Director, Prestige Communication concurred with an observation of his own “A brief is a process and the agency is never made part of the actual process of what resulted in the need for advertising. Brief can be the dust or the gold, depending on how the client briefs the agency. The more exciting the brief, the more the out of the box campaign you’ll get”.
Thus it can be said that the brief is not a form to be filled out but the beginning of the creative process, the first creative thinking, the first imaginative leap and the first ad of the campaign and if it’s not written in the format that gets into the agency people’s minds, than they will not measure their work against it – one reason why despite bad briefing, the agency still produces great work…They simply ignore the brief.
Yet advertisers cannot afford to take this aspect of communication lightly. With the pace of business quickening and as the number of brands multiplies, increasingly it is not companies but the customer who will decide which brand lives and which brands die and to do that it is now highly important to stand out in the market place. This means finding something, anything which can separate your brand from the clutter. To start this process ask yourself “Are you Asking The Right Questions”. The brief in 1992 which the agencies used to send to their clients included questions like:
• What is the problem or opportunity?
• Who are we talking to?
• What should the advertising achieve?
• What thought do we want to leave with others?
• What will make them believe this?
• What is required?
• Anything else?
Come 2012 and for most part agencies still follow the same brief format namely a problem to be solved by advertising, consumers’ to ‘target’, a message to say AT them, reasons to believe, tone of voice and what media the client needs. This is despite of the fact that the consumer and the media both have changed dramatically in the last decade. A more relevant method of questioning now is What’s the real problem?, Who is this among?, How might we best approach solving this?, Why might they talk about this idea?, How do they get involved? and What will keep the conversation going?
The brief also needs to follow some guidelines amongst which are:
• Marketingese / jargon has no place in a brief. Speak with personality (ideally that of a consumer), and immediately you’ll use far more evocative inspiring language and not hide behind generic marketing nothingness.
• A briefing is not a dictation. Make a brief closed or directional, and you’ll know what the creatives will produce even before they go away to work on it. A brief should be a platform from which they can launch off from. Not a means for you to force your ideas on a team. Always double check – can you think of two or three ideas from the brief you’ve written immediately? Are any of them your pet ideas? If yes, your agency will produce more or less the same.
• A brief should not be written in exclusion of others. Whilst the planner should own the final document, but it is absolutely imperative to go to speak with the creative teams when writing it. Take some options, get their point of view.
If the creative brief is not itself creative, if it does not suggest solutions to problems, present information in an expansive and interesting way, and interpret the information with imagination and flair, then its authors and presenters have no right to expect anything different from the creative agency. To check whether it’s an engaging proposition or not, it helps to ask questions like Is it instantly clear and does it communicate exactly what you want to say?, Does it contain a fact about the product you didn’t know before you started writing? Is it surprising or thought-provoking?, Does it contain a strategic insight?, Does it contain a benefit to the consumer?, Do you yourself believe it? If the answer is ‘no’ to any of these, it isn’t an engaging proposition e.g. we can say Dawn Newspaper is the paper of choice of the upper income segment of the population of Pakistan which are the core decision makers of the country, which in all likelihood will produce a typical ad. However a better brief would be Dawn Newspaper is for people who like to make up their own minds and a great brief would be Dawn Newspaper – not written for sheep. Thus when writing a brief, these are the top tips.
Consistent – The brief is brief for a reason. There is no space for tangents and multiple ideas. Pick your core theme, and trail it through EVERY element. If it is as fertile a thought as it should be, this will be easy.
Get the right info in the right boxes – Often boxes are mixed up in which Insights are passed off as objectives and the audiences are often found in mandatories. There are no “dull, functional” boxes. Everything should inspire and stick to your theme.
Language – Work hard to avoid the mundane. Let your vocabulary flow and inspire. Rewrite it. Rewrite it again. Every word is sacred. Make them all work hard. Remember, if you leave a loose word or loose thought, what’s to stop the creative picking up on this and basing their idea on it.
Follow The Template – It is a fixed template for a reason – to stop everyone going on for pages. If you need to shrink text or expand boxes, you are writing too much. Edit yourself, not the template.
Find your trueline – Marty Neumeier in his book ‘Zag’ says that all brand communication should emanate from your trueline. A trueline is the one statement you can make about your brand which is the reason why your brand matters to customers. It can’t be reduced, refuted or easily dismissed. The key to crafting a trueline is to focus on a single proposition. If you find yourself using commas or ‘Ands’, you may need more focus e.g. Avis – Because We’re Number Two, We Try Harder or for a insurance company don’t let your illness cripple your family.
With the wealth of increasing clutter of products, features, media, advertising and messages creating a poverty of attention in our world today, we need to ensure that we create emotions, aesthetics and experience that excite our audiences and creates vibrancy again in an increasingly dull and similar advertising landscape. To do that kind of magic requires crafting a magical brief.
We live in an era that isn’t business as usual anymore. Living in a networked economy with an increasing overlap between consumer and technology is opening up opportunities for businesses and the resulting advertising to evolve. As Mark Earls has said marketing is increasingly moving from a world where you are marketing to people to one where people are marketing to each other on your behalf.
Daniele Fiandaca is one of the foremost trendsetters in the field and is currently running his own consultancy, Digital Fauna (DF came from the initials of his own name). Prior to starting his own consultancy, London-based Daniele Fiandaca was CEO (Europe) of Profero, an independent, privately owned digital marketing agency founded in London in 1998, growing it from a small team to the global business it is now with 300 employees in fifteen cities across the globe and boasting a highly diverse roster of clients, among them AstraZeneca, COI, Guinness, HBOS International, Johnson & Johnson, Lufthansa, and Western Union. Under Daniele’s creative leadership, the agency had won many awards, including a Gold Cannes Cyber Lion for its MINI “White Rabbit” campaign.
He also continues to run Creative Social which he founded, alongside Mark Chalmers, in 2004 and has sat on a number of juries including D&AD, Festival of Media and Revolution. His passions include film, collecting vinyl toys and traveling to exotic places.
Umair Mohsin caught up with him at the PAS Digital and Social Media workshop held at the Sheraton on September 21, 2011 and had an engaging ‘conversation’ about social media, marketing people to people, whether agencies will survive in a new media world and the future of advertising as we don’t know it.
Q. How do you usually define Social Media?
Social media is really a conversation facilitated by lots of technologies. It really is a ‘conversation’.
Q.When we say conversation do we mean between the consumer and the brand?
No! It’s a dialogue between people to people.
Q.So where do the brands come in to this?
It’s a conversation so it’s the same conversation that we might have if we were having dinner or if we were going to someone’s house. When people are having such conversations do they expect a brand to leap in and become part of the conversation? They don’t. So why do the brands feel they can do it online. What they [the brands] need to do is provide social currency to these people to actually fill those conversations. People tend not to want to speak to brands, so the brand itself has to be fundamentally interesting if it wants to become part of people’s conversations. A lot of brands don’t get that.
Q. So why than should brands take a look at social media in the first place?
Word of mouth has always been the most influential marketing media ever. Now however word of mouth now equals world of mouth. Brands can now get into those conversations and actually have people promoting them with one person conversing about it to a hundred people or even a thousand people and that’s extremely powerful.
If brands provide interesting content, interesting offers, interesting conversational pieces, some entertainment than they have more chance of people spreading it without having to spending media dollars. It can be mass reach without the cost. Fundamentally however it means you do have to have a good product as to the same extent it is much easier to get found out. You also have to be interesting.
Q. You use the word interesting a lot. When we say Interesting what do we mean? Is making someone laugh interesting?
Brands need to have social currency to be interesting. If you can make something simpler, faster, more inspiring, more available or effortless than you’ll have currency. For other examples look at the social currency wheel.
Q. Brands like McDonalds, Starbucks, Pepsi or Coke do not need social media to have social currency because of their existing heritage. Does social work in the same aspect for new companies or brands?
There is a telephone company called GifGaf in UK which is a phone network built using social media. They ensured that the community engagement happened consistently and sustainably adding value both to the brand and the community. Secondly, this form of media works best when the whole business is geared to not just accepting but embracing the value and the power of its community.
Q. What was the thing that they did different?
They listened. That’s it. You have to understand the fundamentals. People in pubs do not talk about biscuits or bulbs. You have to create something that they might talk about. Wheat Thins is a fantastic example of creating something quite humorous utilizing people’s use of social. Brands have to engage their fans and if they don’t have any than they do have to ask this question of why not and that’s the issue which they have to address first.
It must be mentioned that advertisers focus on numbers when social is not about numbers but about the quality of engagement. If you can have a group of 100 fans you can learn so much including about the products and they can be your biggest evangelists. So it’s not about the numbers. That’s why it’s a CEOs job to ensure that their company embraces social across the board.
Q. How has business changed because of social media?
Because of WOM phenomenon now products actually have to be good whereas in the past products have been successful without being so. Bad customer service is also a thing of the past, most brands do not get away with that anymore. What we’re also seeing is that people have to be far more open and honest. You have a lot of examples of businesses using social media who tried to hoodwink people and got found out very quickly. So social media has made the businesses need to be more honest.
Q. Isn’t it too many choices and too many lines of communication? How do you keep up?
If the CEO of ZAPPOS, a multi billion dollar company can spare time for twitter then no business has the right to complain. Like I said it’s the CEO that leads the whole culture. The problem you get in UK and possibly in Pakistan too that it’s the more junior people who recognize the need for social and in all honestly many senior management don’t get it. What you find is that those CEO do get it and actually embrace it will gain a competitive advantage as a result of engagement with its community.
Q. What factors should companies consider when choosing to engage on social media?
The first thing you have to understand is that what are you trying to achieve first. Going on Facebook is not a strategy. You really have to understand what it is you are trying to do. Are you trying to build a community, do you want to use it as a CRM tool, do you want to experiment and see what happens, can you recruit your biggest fans to manage your Facebook group for you… there are different ways you can do stuff. Some of the basics are that do not open a twitter account and follow a 1000 people just to have them follow you back. You have to know what the Twitter account is for. If you’re a telco e.g. and you have customers tweeting their problems to you, you can’t ignore that. You have to have a system which can respond to those tweets straight away. The acceptable time on Twitter is really no more than an hour.
Q. Best tactics, where do I start, how do I find my focus and efforts.
Listen first, be human, and first listen to what people are saying about your brands. Nielsen Buzz metrics is an excellent tool for listening.
Q. How do you pay the agency which does social media?
I don’t think advertisers should be using agencies for handling their social media. It should be in-house. The only people who know their brands are the people who work in them. How can an agency know how to answer on FB or Twitter. Agencies should be in consultancy or giving lots of training. Agency people should sit in the business if they are handling it to understand the business and talk to people around you but it should be internal to the company.
Q. Is there a future of agencies than if brands continue to grow their own communities and market themselves?
(Laughs) The future of agencies is as making brands interesting e.g. WCRS was the agency behind Orange Telecom. They made the mobile operator interesting. Great ideas are great ideas and agencies are good at great ideas. Agencies will be successful if they can provide ideas which people can belong to.
Q. What elements should be addresses in the plan and how would you measure success.
One of the ways is that people are starting to measure the avg. value of a Facebook customer vs. a non FB customer. 40% of people want to join because they want to receive discounts and promotions and then you use the engagement to help them become customers.
Popular is not cool. Cool is the next big thing and in a world of increased competition, intensified customer demands and globalization, understanding how to be creative and then build up a culture of innovation is more important than ever before. One of the ways companies do that is to use ‘Trend Hunters’ or ‘Trend Spotters’, people who research ‘what’s cool?’. One of the pioneers of the field is Jeremy Gutsche, a Canadian innovation expert, author, “one of North America’s most requested keynote speakers” and chief trend hunter at trendhunter.com which has been described by The Independent as “the world’s biggest online cool hunting magazine”.
At the Marketing Symposium organized by Revelations, Jeremy was in Pakistan to talk about ‘Unlocking Cool: How to inspire innovation potential and infect products with Cool’. Jeremy’s Culture of Innovation framework exposes the audience to ground-breaking ideas related to perspective, customer obsession, tolerance for failure and creativity. Aurora caught up with him to talk about the next big thing.
Q. Tell us a bit about yourself and do explain what do you mean by Trend Hunting?
I guess the best background for me is just to say that I’ve always been an entrepreneur at heart and I never knew what my business idea was going to be. Everywhere that I worked I was trying to get that inspiration. So eventually when I started trend hunter, I wanted it to be a place where people could come when they wanted to get their ideas and I’d get ideas from all over the world and hopefully I’d find my own. As TrendHunter took off I never needed to pick. The interesting thing is that still guides us. We have the world’s largest trend spotting network with 50,000 contributors signed up around the globe from where we publish ideas each day and with 40 million views a month we gather data to understand what clusters and what groups are interesting.
Q. Why should marketers care about Trend Hunting and what’s Cool?
Cool is unique, cool is cutting edge and Cool is viral. Micro-trends and innovations surround us so how do we make sense of all the noise? Trend Hunting thus is basically the search for inspiration. Looking for something new, a pattern that could inspire your next big idea. It’s not about the rise of big trends that everyone knows about like ECO or FEMALE PURCHASING POWER since everyone knows about those including your competitors. We’re looking at micro-trends, those unique niches of opportunities. When you see these opportunities you can take advantage of them and if you don’t your competitor or a new startup might and overturn you.
Q. For most businesses your ideas are quite scary. You advocate constant change, relentless questioning and an anti-bureaucracy. How do you create a culture like that in a traditionally steeped organization?
There are two parts to that that are important. One is the idea that you need to constantly change. Second, you have to realize is that the world never returns to normal. If you look at marketing, you can see things like social media changing the landscape.
I like to say that ‘Culture eats Strategy for Breakfast’. Thus in terms of how you get a traditional organization and get them to change, an interesting way to get an organization to get more innovative is to create a ‘Gambling Fund’. The idea is that it’s tough to try to persuade everybody to do things a new way but the real thing that stops people from being creative is because you get caught up in a routine. With a gambling fund you are allocating a specific amount of money and time trying something new. BBC’s ‘The Office’ was their most successful program and that came out of that fund.
Q. You talk a lot about destroying value to unleash new creativity and innovation. Yet cannibalization in business is hard. Is there a middle way for managers where they can balance both shareholder demands yet ensure that they live for tomorrow.
In innovation there are best practices and having someone kill your idea is important. There is a need for people to challenge the idea and there needs to be a push in all directions. Situational Framing Dictates The Outcome Of Your Creative Process. What is it that you’re trying to do?
It’s so easy to get caught up in your profit center that you stop adding fuel to your innovative new ideas. When push comes to shove or when you need a little extra money, companies cut off their innovative arms. For the long term, one of the most important questions is how do you re-invent ourselves and that always comes from destroying that which you’ve created.
Failure is part of the experimentation process. In order to win, you need to constantly be gauging customer needs, tracking evolving trends and testing new ideas. Google is an example of this. They’re constantly testing new portfolios.
Q. You have come up with “The Exploiting Chaos Framework.” Give us a brief description of each of the four tactics and how they work in the framework. Do you think these tactics can be employed by Asian cultures which are more passive in nature?
The framework has four parts. Creating a ‘culture of innovation’ – Deeply Understanding Your Customer and Willing to Try New Things. The next part is ‘trend spotting’ – you identify opportunities from your customer, competitors or other industries. The third part is adaptive innovation – constantly adjust your strategy to ensure that you’re on top of a changing world and the forth idea is ‘infectious marketing’ – to create a meaningful change it’s about finding a way to break through the noise and create word of mouth. What this framework is about is that in periods of change these are the elements that help companies adapt and win.
There’s a difference between how people remember you and having people feel how they see you as part of their team. You can either make an emotional connection or you can go deeper and making a cultural connection. The difference is that with a cultural connection I see you as being part of my team. I don’t see you telling me what to do, I see you as part of my team. Because we’re on the same team I want you to win and you want me to win. In any industry when you make a cultural connection, people are willing to refer you. That someone else says your product or message is the best.
Q. I love the quote you often use, “Culture Eats Strategy For Breakfast”. Do tell us more about what that means and how does culturally steeped nations can create the Culture of Revolution you often talk about. Are we doomed to passivity?
No matter how cool your PowerPoint deck is, if the organization is not willing to adapt and embrace change than it’s not going to happen. At the end of the day, what will make your company succeed or fail is the culture you’ve created. This means both the culture within your organization’s teams AND the cultural connection you’ve made with your customers. Within your team, you will always be more successful if your team feels connected to your cause, empowered to try new things, and able to test and fail. With your customers, you will always be more successful if you can create a cultural connection that makes people feel like your product is made just for them. Too often companies speak “to” their customer, but companies that create an authentic cultural connection make the customer feel like they are part of the same team… They talk “with” their customer.
Q. For a message to go viral, you recommend that marketers should Relentlessly Obsess About Your Story. What does that mean?
People talk about it in a given way. You can control that message by having a story idea that is simple, direct and super-charged. The idea is that if you can only remember 7 words or less – slogan or in every part of my company – you might want to think what those words are. You need to best describe what you do. By constantly figuring out what are the exact words that best define what your company is about you can get a disproportionately better impact and each word really really matters.
You need your story needs to be simple. I’ll give you the words that you can tell us. The second is you need to be direct. You convey your value proposition and why I must choose you. Super-Charged – messages, slogans, titles that makes me want to tell someone else.
Every year for the last five years digital pundits had been predicting dramatic change in our media consumption. They had foretold the convergence of digital and broadcast media, the erosion of mass audiences and the restructuring of the media and advertising industries. So far every year, leading industry practices had remained static, even stagnant, and the overall pattern of marketing spend had barely changed in all these years.
2011 however marks the event when the long-predicted future has finally arrived heralded by the ever increasing number of advertisers looking for digital solutions, the marketing spend on digital in Pakistan crossing the $5 million mark, the setting up of ‘digital agencies’ by the dozen, established traditional agencies setting up ‘interactive divisions’, whilst prior tech companies proclaim themselves to be ‘agencies’ and both mainstream media companies and major marketers accepting the facts that the methods by which consumers absorb information and entertainment and the ways they perceive, retain, and engage with brands and brand messages have changed irrevocably, as evidenced in interviews in Nov-Dec, 2010 issue of Aurora, the leading trade magazine for the advertising industry. Now enough consumers are spending enough time accessing information and entertainment via digital media platforms to have shifted the overall pattern of media use. This shift will increase substantially in 2013 as greater broadband penetration (4.13 Million connections estimated by PTA) and roughly 20% of all Pakistani households using broadband will make the internet more viable as an alternative entertainment platform as well.
Yet digital platforms continue to remain a mystery for most Pakistani marketers. This is because they transform the traditional marketing and media ecosystem into an intimate, immersive, accountable environment, in which consumers can interact with brands at every level of the purchase funnel. This befuddles the mind as it is very different from the linear content and communication form developed for traditional marketing channels where the consumer is assumed to be the sheep or as politically correctly called ‘captive viewer’. The old media world was where information was controlled and limited by editorial through a centralized single channel distribution system. In today’s multi-channel world of ‘leaks’, however it’s not really surprising that these old forms of advertising should fail to translate well as consumers increasingly behave more like discerning critics who use the Internet to pick through and make their own sense of the swathes of information available. To survive in this new reality, thus requires a massive change in mindset.
The first thing to understand about digital marketing is that (surprisingly) it is not primarily about technology. It’s about providing relevant & interesting value in the form of ideas and experiences that get people engaged, makes them want them to talk, provide real entertainment value, or render a useful service to the consumer rather than just another [empty] marketing slogan, dance or jingle. These marketing ideas and experiences thus need to be crafted with the same discipline as the underlying product so that the two become virtually indistinguishable.
Secondly, to effectively engage consumers in the new digital space, marketers need to define more clearly the values that underlie each of their brands and to instill those values throughout the marketing program through integrated marketing. Marketing executives can start by asking the overarching question: What new capabilities and services will enhance the value of my product to my customers? The answer to which will thus develop an understanding of capabilities they should keep in-house (e.g., those that can achieve scale across the portfolio and that create essential advantage) and which should be outsourced to external marketing, media, and technology partners.
Thirdly, it helps to remember digital marketing’s greatest selling point. Digital benefits marketers by furnishing a real time, direct, uninterrupted view of the consumer and a measurable, efficient read on the return marketers are generating on each marketing spend. This accountability and intimacy are particularly important now, when a cluttered and highly fragmented media environment has made “buying awareness” prohibitively expensive. However it’s one thing to collect digital information; it’s quite another to draw intelligence from it. Leading marketers would be wise to build partnerships with their digital agencies to track ad placement, versioning and effectiveness as well as delve in social insights generated through ‘listening’ to the consumer.
To thus keep up with the times, the following are some recommendations for new digital marketers and traditional agencies:
Shift just 3% of your media spending and management attention to digital media and learn how to use those media to more effectively influence consumer purchase behavior. Especially learn to develop in formats which promote interaction with audiences.
Digital is not a silo. Combine “above-the-line” advertising and “below-the-line” marketing (promotions, sponsorships, events, public relations) in new two-way interactive campaigns. Touch-based technologies can really amp up any event.
Research through approaches and metrics that measure outcomes.
Traditional advertising has lost its storytelling charm and evolved instead into predictable, often bland, and largely invisible dance based executions that are not memorable or inspiring. Industry-wide, companies are making digital media a bigger priority in their brand strategies. It’s not that digital alone will dominate over other mediums. Mass advertising will continue to perform a role in driving awareness, but increasingly as digital makes head-end marketers will prioritize towards channels that deliver accountability, relevance, and interactivity to fully capitalize on the online opportunity. The digital markets thus are only set to boom.
These are signs of changing times and they are everywhere. Banks, retail stores, exhibitions, malls, airports, restaurants — digital signage is being mounted at all these places. Enter the world where flat screens offer high-quality, value-added marketing content.
Digital signage is a broad term used to describe the integration of a variety of technologies, including software, that culminate in a single end result — a unique and powerful communications medium that provides unparalleled opportunities for marketers to capture audience’s attention, educate and inform, build brands, improve customer experiences and drive sales through the use of digitally powered signs (such as plasma display panels, liquid crystal displays (LCDs), kiosk stations (such as ATMs, computer monitors and normal televisions) to replace and enhance traditional media such as posters, outdoor billboards, etc. The concept has been around for some time, but now digital signage is fully coming into its own since the days of the dot matrix display boards, the first usage of this technology.
AN ATTRACTIVE ALTERNATE
Digital signage is now a viable and affordable alternative to traditional printed signage because the prices of display hardware have tumbled. Thus this new medium of Digital Out-of-Home (DOOH) (also known as out-of-home advertising, in-store TV, captive audience TV, digital signage or dynamic digital display) looks set to offer advertisers one of the most targeted and powerful ways of reaching consumers. The type of content on this type of signage can vary. Pakistani marketers looking to improving the effectiveness of their marketing communication are fast replacing the static point-of-sale signage, especially in today’s multimedia world, where it doesn’t have the POP! it used to.
Aside from content such as TV ads, messaging on DOOH can also provide a website address, mobile number or even an IVR, which, when dialled, provides a pre-recorded message specific to the ad display location for exhibit, product or other information. DOOH can also be made interactive with sensors, touch-screens and other interactive devices which can be installed alongside these displays, allowing content to respond when consumers pass by. This enables the customer to fully engage in the communications experience, and this also provides valuable marketing data.
There are several dimensions of this technology, including comprehensive control over how, when and where your messages are delivered, based on the location or time of the day. This is called narrowcasting. Narrowcasting involves streaming specific data to specific audiences as opposed to traditional broadcasting, which targets a great swath of general viewers.
Digital advertising makes it possible to present messages on multiple DOOH displays through eye-catching dynamic content targeted by demographic, psychographic and geographic specifications, besides other customer-defined business rules such as the time of day, store zone, etc. Since the content can be changed or updated at any time from a remote computer containing the solution’s administration software, the displays are designed to show product information to consumers with the hope of encouraging sales that would not normally occur according to consumer’s traditional shopping patterns e.g., on a given day, different ads for a clothing store might be presented to reach the young people between 18-25 year olds through displays at bus shelters, coffee shops, on campus, in food courts, petrol stations, bank machines and in malls, depending on the time of the day they are likely to be there in large numbers.
This kind of specific targeting allows a marketer to communicate their message to the audience at critical junctures and cuts down the total spending on ads. The greatest strength, however, of digital signage lies in its immediacy. Digital signage enables “speed to messaging”, “faster time to market” and communications flexibility when content creation, composition, management, transport and presentation are all done digitally.
This allows the cost-effective re-purposing of ads across media platforms, since digital signage networks are largely automated and remotely controlled. This enables the launching of new communications campaigns with zero courier costs, no on-site personnel requirements and total security. Thus digital signs can literally be reprogrammed with the latest advertising campaign, price change or public message at the click of a mouse button. One mouse click and thousands of screens update automatically.
This also has the benefit of eliminating out-of-date messages to increase relevancy of messages for the consumer – no more posters or messages from last month’s campaign fluttering around. In the future, these signs will also be able to influence inventory and supply chain by promoting products that are in an over-supply and cutting off promotions of products that are out of stock at that location. Targeted, informative content that changes behaviour, such is the power that every marketer dreams of.
Also, since DOOH presents digital messages at the point-of-purchase, it brings “the power of place” (how our surroundings shape our thoughts, emotions, and actions) to life. There is currently no other medium which makes it possible to deliver compelling content at the right location at the right time for maximum impact, for example it is a known fact that over 75 per cent of buying decisions are made at the point of purchase (Source: POPAI). Setting up a digital signage at a shopping mall or retail outlet can influence purchasing right where it’s about to happen. This is what sets digital signage apart from traditional media. It allows you to run purpose-built, meaningful content that can be managed to meet the consumer experience.
DOOH also has been reported to increase customer dwell time. Dwell time is the period during which a dynamic process remains halted in order that another process may occur, e.g. a person stops to glance over at a range of biscuits in a super market. Retail studies have shown that the longer the dwell time, the higher the number of sales.
The use of DOOH has also been reported to enhance the customer experience through value-added ‘edutainment’. In waiting rooms, e.g., such as the doctor’s office, pharmacies, railway stations or banks, these displays reduce perceived wait time. People really enjoy watching the educational programming on these displays and believe that the time spent was less than it really was improving customer satisfaction.
SETTING IT UP
Setting up a basic signage is as simple as plugging a DVD player and a DVD with your ad into a display console and putting it up in a shop. However, for a proper DOOH, the components needed for a digital signage system include: an authoring console equipped with content management software, allowing the playback of content in a variety of playback formats, a server to which finished content is uploaded and from where it is distributed to the different displays of the network, a distribution infrastructure consisting of a data network or fibre optic or CAT5 cable which broadcasts media from the server to the displays and digital signage displays which can be plasma displays, LCD monitors, CRT monitors or kiosk stations.
The distribution infrastructure is perhaps the most important part of digital signage, and choosing the correct distribution technology is a crucial element of any digital signage project. To date, the most common distribution infrastructure in Pakistan has been the data network platform, most commonly seen in the top retail stores of the country.
A data network platform uses a computer network infrastructure in order to transmit content in the form of compressed multimedia files (such as MPEG files) from the management station to the central server and from there to the computer connected to the display device. The central server handles distribution to multiple displays and the display-end computer decompresses the file for display on the display device. This solution requires a dedicated CPU in every single display device deployed.
While offering better approaches and new paradigms of message targeting, DOOH is typically sold on a rental basis. Thus the technology’s inherent capabilities for message targeting combined with attractive rates make DOOH attractive, providing high return on marketing investment. And the best part of it all is that marketers can maximize display value with measurable effectiveness, tallying sales data to the message that was being run on these screens.
The greatest interest in digital signage today is from the banking, telecom and retail sectors, although it does have other uses in healthcare, education and other displays of information, e.g. an average retail store has a footfall of over 500 people per day who can watch these ads and the preliminary results of studies by local major players show that a dynamic content’s impact is higher than that of static media on these locations. So it’s no surprise that the potential for this technology is huge.
Telecom franchises number well over 1600 alone, there are over 5000 high-end retail shops where this technology can be deployed and high-end banking branches number well over 4500.
As one of the suppliers and pioneers in this field, 3M Pakistan is currently assessing the potential of bringing this technology into Pakistan. They’ve already launched one of the components of DOOH amongst their range of products, Vikuiti, which is a range of projection display components. Vikuiti has been tested at over 50 locations in Pakistan so far and have been proven to be an excellent choice, surpassing the metrics of reach, frequency and recall over static media. Within one year of its introduction Vikuiti has already hit the targeted numbers for this market and is growing fast, slowly converting the POS market in Pakistan.
According to Dr Hugh Philips, a cognitive psychologist, human beings “select” or “de-select” what they notice based on the relevance of what is presented. That being the case, motion video and animation coming and going on a dynamic display has a high probability of being seen, and relevant or interesting messages can then fulfil the objectives. The numbers are already promising. Viewers are five to 10 times more likely to notice and recall dynamic media than static media (Source: POPAI).
It’s a high-definition world, and today’s time-starved consumers demand more from their experiences, thus using digital signage can make for happier and more energised customers. With its superior ability to target specific messages towards defined audiences and get noticed, digital signage offers unparalleled opportunities to anyone wanting to capture the ever fragmented audiences’ attention, educate and inform people, build brands and drive sales and profitability.
The advantages of digital signage
• Reaches defined audiences
• Targeted messaging
> Target your messages by screen, location, time or day
> Enables tactical marketing by audience segment
• Captures audience attention
> Increases message impact through eye-catching dynamic
> Enhances the customer’s experience through value-added
> Increases customer dwell time and reduces perceived wait time
• Speed and immediacy of message change
> Reduces time and cost to produce and deploy new messages
> Eliminates out-of-date messages to increase relevancy of
• Ensures local compliance with auditable playback
> Automated playback with no human interaction
> Compare proof-of-play reports to sales data
• Maximises display value with measurable effectiveness
> Creates content schedules containing multiple messages
per signage asset
> Easily tests different message executions and assesses the
impact of each
Whose Afraid Of New Media
Published In Dawn, Aurora, March 2007
by Umair Mohsin
Technology is shifting power away from the editors, the publishers, the establishment, the media elite. Now it’s the people who are taking control
– Rupert Murdoch, Quoted in Wired, Jul 2006.
In a market with a yearly ad spend of Rs. 6 billion on TV and hotly contested by 50+ local players with another 20-25 new channels coming up, the power of the networks as distribution platforms and brands is diminishing fast. On the “business” side, the old networks have no end of new competition. The market is getting quite competitive, and as happens in a classical product life cycle, the players are feeling the pinch in terms of pricing, as well as differentiation in their offerings to the market. On the “consumer” side, the people formerly known as viewers have taken control of what, when, and how they watch and increasingly they’re doing it without commercial interruptions.
The old days of corporate media based on a centrally planned dictatorship are coming to pass. The old method of we will decide what you want & need, the limited channels of information with a central editorial control, government regulation and one-way communication is being fast replaced by advances in technology and communication, so much so that now we’re surrounded by information we see and hear. Overload is a huge issue. The old-school closed networks survived because of aggregation. The channel recommended the show by putting it on the air – it aggregated the content; it aggregated the audience; it sold the ads; it shared the revenue. Life was so simple. Well, so much for that. The power has shifted.
The viewer is getting smarter, more knowledgeable and has access to more media options than he/she can consume. Time-Shifting (the recording of programming to a storage medium to be viewed or listened to at a time more convenient to the consumer) whose earliest example was the recording of TV programming to a VCR and more recent is Video on Demand offered by cable operators, Space Shifting (The act of copying digital content for use on a device other than the one for which it is was originally intended, such as copying a music from a compact disc to an MP3 file for use on a portable MP3 player, or copying an MP3 file onto a compact disc for use in a digital audio player) & Place Shifting (watching or listening to live, recorded or stored media on a remote device via the internet or over a data network) of which one example is Mobile TV, combined with Time compression (the trend that people are busier and have less time. Plus they feel they have less time in their lives for all the things they want to do) are rapidly changing the way traditional media is consumed. The consumer is no longer dependent on the channel’s FPC chart and the trends point to the fact that as with the Internet, which you can consume anytime, anywhere, the same attributes will have to apply to rest of media, if they are to stay relevant to their consumer’s lives. Infact the only thing stopping these technologies from taking over right now are habits. The older the medium the longer will it take to change.
Customers getting used to customizing things to their preferences is the least of the worries of big media and isn’t the only aspect which keeps (or should keep) network executives up at night. Things are getting infinitely more complex. The Long Tail is taking over in our markets.
The concept of the long tail is simply that technology empowers the growth of markets serving smaller niches, minority tastes and because of it individuals are offered greater choice. Generally, as the number of TV stations grows or TV programming is distributed through other digital channels, the key demographic individuals are split into smaller and smaller groups. As the targeted groups get into smaller niches and the quantity of channels becomes less of an opportunity cost, previously ignored groups become profitable demographics in the long tail. These groups along the long tail then become targeted for television programming that might have niche appeal. As the opportunity cost goes down with more channels and smaller niches, the choice of TV programs grows and greater cultural diversity rises as long as there is money in it. The implications of this concept are that specialized segments would further fragment into specialized niche segments and mass would no longer command the same ratings. Such is already happening in our media world with channels increasingly dividing into Reach Channels and Affinity Channels. Translated in network’s terms it means that as the network’s audiences shrink, they cannot raise their rates, because they no longer control the clock; Furthermore, there is always somewhere else to reach audiences — somewhere more efficiently and economically. To networks with massive infrastructural & fixed costs, this can spell a death knell and indeed many of our local channels which cannot cover their costs will go under within the next 5 years.
“Regional language channels, specialized programming, niche content, are all new ways of tapping the same households that own TV sets. Instead of the same show at the same time being watched on the same channel, we see a trend of individual TV sets, with choice programming at desired timeslots as the current viewership practice”, said Khalid Siddiqui, CEO, CNBC Pakistan. “The challenge now, and more increasingly as we go forward, will be to carve out clear positioning through high quality, captivating content targeted to clearly identified target audiences. It will be difficult for channels to be everything to everyone, and some channels will have to do a hard think about which space they intend to occupy to match with their strengths”, he added.
The Long Tail also has implications for the producers of content, especially those whose products could not – for economic reasons – find a place in pre-Internet information distribution channels controlled by publishers, record companies, movie studios, and television networks. Looked at from the producers’ side, the Long Tail has made possible a flowering of creativity across all fields of human endeavour. One example of this is YouTube (incidentally the third most popular site in Pakistan), where thousands of diverse videos – whose content, production value or lack of popularity made them innappropriate for traditional television – are easily accessible to a wide range of viewers.
Revenue streams & thus business models are also changing fast for these networks. The amount of clutter on TV is fast leading to the traditional marketing model being challenged, and CMOs are increasingly vocal about the day when it will no longer work. GEO Network alone e.g. aired more than 160,000 spots last year. Marketing saturation has created a clutter environment that people are now resisting. Consumers are so swamped by pitches that many simply tune them out and the more affluent exercise enough control that with the flick of their fingers, they can bypass unwanted advertising.
“Too many agencies, are tethered to a 30-second TV spot mentality because agencies get paid based on 30-second spots and that financial incentive keeps them from changing their model.”, said Ehmer Kirmani, CEO Media Idee. “You can whip up those TV ads, spend millions on their productions and increase those (not so) catchy print ads as much as you like, but their impact is fossilizing and the companies that foot advertising bills are increasingly aware of it.”
Haroon Rashid, GM Marketing, Tapal Tea agrees. “A decade ago opportunities were limited. With the advent of new media such as activations, ambient media, mobiles, etc, the advertising world has changed. The cable networks and the line walas too are becoming stronger everyday. I don’t know if anyone imagined just how much of a new paradigm shift will be required to work with these”, he said.
“[Because of the decreasing returns from traditional campaigns] Tapal has been increasingly experimenting with new media techniques. We were amongst the first companies which employed internet advertising by buying space on Cricinfo.com and were also amongst the first movers who used the cell as a marketing medium to create an engagement with the consumer for our family mixture brand. 40,000 people responded to our campaign in the latter. Last year we’ve increased our presence on mobile media and used this channel as a means of participation for our Danedar brand. A 100,000+ users texted in their responses. So it’s no surprised we’re already putting more emphasis on new media technologies like mobile phones & internet especially with our new website. You cannot ignore television but the clutter is increasing everyday. There will always be a weightage in each media [whilst planning for our campaigns] but [the fact cannot be denied] that new media is more economical”, he added.
Yet inspite of these warnings, the media industry is growing increasingly nascent. 5 years onwards one can literally predict that the status quo would have only been broken by some examples of product placement, a few branded entertainment productions and some forms of new media. It’s not totally the industry’s fault. It too suffers from a range of problems. There are no quality parameters for software, lead times are high, talent is rare and payment cycles are long. Piracy itself is a major issue especially since cable operators rarely pay royalties for the content they air.
Yet even then the networks are not preparing for the oncoming world of infinite ubiquitous content on demand. The “million channel universe” will include not just traditional media delivery and the Internet, but also a whole set of new devices and delivery platforms. Will they stay relevant with their existing business models is a question that increasingly comes to mind. To succeed one must quote Imtiaz Noor, the business development head of MobMasti when he says “Personalization is the catalyst of the new interaction economy over the next 5 years”.
Many in the communications industry are aware that consumers are turning their backs. “We know that things are going to change. We are assessing what is changing, what is the current state and by what time we should be ready with it. It’s not about just creating a destination. First you have to know what your customer’s needs are and their allocation of time. What needs is this medium serving? Content or technology will not make any difference if it’s just going to be more of the same that consumers avoiding right now. It’s how you use these that matters”, said Yasir Riaz,Director Brand & Strategic Planning, GEO TV Network.
Thus channels will have to determine which need states they fulfill and then will have to follow these need states and passion points. Do they enrich your life, give you control, or are just a time pass. They’ll have to answer these questions to fulfill that role.
“We will have to move from being a shopping mall which promotes window shopping, to becoming a high street, specialty store, where shoppers come by intention and spend time there”, said Siddiqui.
In such an environment it is IMPERATIVE to let go of the orthodoxy of traditional segmentation and start looking at the people as “people” rather than numbers on a chart. Mostly because traditional segmentation doesn’t really tell us a lot about the PEOPLE behind the numbers. Firms are increasingly working with LSM (Living Standard Measures) segmentations, rather than traditional SEC profiles. LSM surveys collect data on Ownership of durables, type of house they live in, the extent to which people lack basic items of consumption (adequate food, clothing etc.), the extent to which people have comforts and luxuries (regular holidays away from home etc.), the extent to which people have had financial problems (defaulting on payment of electricity bills etc.), the extent to which people had problems with their accommodation (leaks, faulty plumbing etc.), for families with dependent children, the extent to which they lacked children’s basic items of consumption (clothing, school supplies and children’s sports and recreational activities). These combined with data from people meters and sales data, will increasingly become the future for all stakeholders – including the agencies, the brands and the networks themselves.
“The role of the different agencies will change to those of ‘real’ brand partners and research will play a critical role in unearthing insights on which brand objectives will be based upon. To this will media selection will increasingly be dependent. At the same time skillsets & knowledge will both have to be upgraded to ensure the message’s seamless integration across all media vehicles”, said Fouad Husain, MD, Mindshare.
“We will remain focused on the quality of our product – i.e. our content – both in terms of inherent quality, as well as audience targeted. If our content fulfils the needs and desires of the audience, we will have a strong foundation to approach clients to partner with us”, said Siddiqui.
Trends are toward the rise of the digital media in Pakistan however this medium has its own issues namely infrastructure & content. Moreso the marketer in Pakistan still doesn’t understand this medium.“We go with our preferred media. We don’t go by the consumer. Right now internet penetration [which stands at 8 million users] is greater than the combined readership of all English newspapers. However the ad spend going towards English newspapers is still larger than one going to Internet. However since we don’t find internet as our preferred medium, so consumers also don’t find it interesting”, said Riaz.
So the lesson is not that old media is dead. It’s not that new media is better. It’s not that the content giants don’t know what they’re doing. It’s simply that the media houses are too stuck in the mindset of big, fancy and being infrastructure-bound where they should understand the value of being lean, mean and constraint-free. Many of these traditional media companies will find it difficult to adjust to the new media landscape of mobile platforms and customer created content due to their investments in old-media infrastructure and business models. Make no mistake. The internet and other technological leaps are upending the media and entertainment industries in much the same way that they have begun to turn businesses as varied as advertising, marketing, retail and communications on their heads. Technology has put consumers in the driver’s seat by giving them a vast array of new choices and better information — and corporations and agencies that want to succeed had better get on board. No longer personifying the consumer as avid, mindless drones will work. Now a new equation is needed.
Nokia recently posted its Q3 2009 results and to say they’re disturbing would be a gross understatement. While net sales and operating profit didn’t fare well being down 1% and 4.4% from the previous quarter, the real startling figure is how Nokia is doing now compared to the same time last year. With a net loss of some 559€mm ($833.9mm USD) and sales tallying 9.8€bb ($14.62bb USD), YoY net sales were down 19.8% while operating profit plummeted a jaw dropping 57.8%.
Last year too in the smartphone category,in Q4 2008, Nokia’s smartphone sales had dipped a whopping 17 percent to 15.6 million units. As always, one company’s loss is another’s gain and no two companies highlighted this fact more than more than RIM and Apple. Both more or less doubled their smartphone market share, which than stood at 19.5 percent and 10.7 percent respectively. Apart from the big three, sales of HTC devices were then up 20 percent while Samsung saw its sales increase by an amazing 138 percent to 1.6 million units. Still, they each only commanded modest stake in the smartphone market at 4.3 percent and 1.8 percent respectively at the time.
This year, In terms of market share, Nokia neither lost nor gained ground having managed to hang on to its estimated 38% market share despite pushing approximately 108.5 million devices. Still, this does not change the fact that Nokia’s handset sales are down 8% as the world’s consumers focused their attention on devices made by other manufacturers.
The biggest gainer overall this year…Apple. Its financial results for the fourth quarter 2009, have beat out the predictions. This quarter has seen Apple hit its best results in the history of the company, boasting a rather hefty $1.67 billion profit. The results, found here, show that Apple managed just short of $10 billion in revenue, at a total of $9.87 billion. Apple sold 3.05 million computers during the quarter, giving it a 17 percent unit increase over the previous Q4 results. Additionally, the company sold 10.2 million iPods and 7.4 million iPhones, representing an eight percent unit decline and a seven percent unit growth over the year-ago quarter, respectively. Even LG’s managed better. Now with Palm’s amazing Pre and Android taking over almost all manufacturers, will Nokia will go the same way as Motorola especially since their initiative to make Symbian OpenSource has thus far proven ineffective?
This was the reverie I was in whilst at the launch of the new Nokia E72 Handset at Karachi, Sheraton today. Anyway, first the formalities:
Built on S60 3rd Edition FP2, the Nokia E72 is optimized for messaging and e-mail with a full messaging keyboard and support for EGPRS, WCDMA, HSDPA/HSUPA (3.5G) and WLAN. The device features two customizable Home Screen modes, active noice cancellation and a 5 Mpix autofocus camera. You can write messages with intelligent text input, enjoy videos, music, and graphics on the 2.36” QVGA display. Additional features include GPS and Nokia Maps 3.0, UPnP, Bluetooth 2.0 +EDR, and USB 2.0 High-Speed.
About Nokia E72
The E72 builds on the formula from the hugely successful Nokia E71, Nokia’s best selling QWERTY device to date. This latest arrival in Nokia’s Eseries family maintains essential elements of its predecessor, whilst still improving its capabilities in a number of areas.
“Despite the outstanding market performance of the Nokia E71, we still continually look for ways to enhance the device,” said Trude Gajland, Category Head Nokia Eseries, MEA. “So we included the desktop like email experience from the Nokia E75 and gave it a new optical navigation key for more intuitive scrolling through menus, emails and fast panning of images. We also upgraded the camera to 5 megapixels and added a standard 3.5 mm audio jack.”
On top of these developments, for the first time, owners will be able to set up instant messaging (IM) accounts provided by Nokia Messaging direct from the homescreen. In just a few steps, device owners will be able to connect to their favorite IM accounts such as Yahoo! Messenger, Google Talk and Ovi, amongst many others.
These new IM features are complimented by Nokia’s range of email solutions with a lifetime license for Nokia’s mobile email and IM service, Nokia Messaging, as well as onboard clients for Mail for Exchange and IBM Lotus Notes Traveler. Accessing popular accounts such as Yahoo! Mail, Gmail, Windows Live Hotmail, Ovi Mail and thousands of other email service providers is simple through improved on-device email setup, with the same easy to use UI integrating all of the owner’s corporate email accounts as well.
Other notable features which have been included in the Nokia E72 include A-GPS and compass with integrated Maps, including lifetime walk and 10 days of turn-by-turn navigation if activated within the first three months. Conversations are also clearer with active noise cancellation, and a torch can be activated with a single press of the spacebar key. The office capabilities have been updated with a new version of Quickoffice, which delivers Microsoft Office 2007 compatibility as well as free version upgrades when new features become available.
For further information, the RAM is 256 MB and the processor is clocked up to 600mhz but it is still an arm 11. Finally Nokia arrives to the 600 Mhz category and even then half-heartedly. Whew! Now let’s review what I think of the launch.
According to the Imran Khaild, GM Nokia, Nokia is not trying to displace the 25000 or so Blackberry users in Pakistan. Instead Nokia wants to use a 40,000 PKR phone to cater to the ‘Consumer Market’ as well as the ‘Corporate’……
Correct me if i’m wrong here. It’s one thing that Nokia’s having trouble penetrating the Pakistani corporate market (and even international i’m supposing) due to international policies, IT Policies and the first mover advantage by BB with the Pakistani telecoms. However, the belief that the E-series can cater to a consumer market requires serious re-thinking. In a world dominated by affluent teens and young adults who thrive on IMs, SMS and increasingly social networks on their phone (incidentally Facebook App on Nokia is the worst i’ve used) are being targetted via a 30 year old technology whose behavior requires that a person think
and reply in a more fuller answer than 160 characters. Not the behavior observed in our youth.There’s also a reason why though 300 million people have tried mobile email, only 10% have retained their accounts there (source: Gartner). Mobile behavior is just not conducive towards email messaging beyond short messages and reading. Yet Nokia believes it can cater to the 80% of the people who still don’t have email accounts when they (the people) have already jumped to technologies like SNN and SMS for most of their needs. Anyways, let’s see if this strategy would work.
The other thing observed at the launch was regarding the nature of the questions and general discussion over lunch. The most popular questions asked at the launch were direct comparisons to the iPhone or its features especially touch (to which Imran replied they want to produce touch for the mass market than an elite market…..). This reminded me about Apple’s recent stunt. In a question as to how Apple viewed its increased competition for the iPhone, Apple COO Tim Cook said “they’re still catching up with the first iPhone”. Nokia… you just cannot do Touch. Touch is a nightmare on Symbian, no matter how cheap it is. I’ve used both the 5800 XM and a 5530 XM in my lifetime and neither gets marks for ease of use or accessibility. Both still require a stylus to use properly.
One of the FAQs often thrown at Nokia’s events is regarding number of iPhone Apps vs. number of Nokia’s Apps. Nokia’s answer usually is that we have countless apps and thus more than Apple. However, that is side stepping the issue very neatly. Apple just crossed the 100,000 Apps for ONE PHONE only. Nokia’s apps are spread over so many series and models, that none of the phones probably has more than 10,000 at best. I counted around 4000 for my Nokia 5730 on http://www.getjar.com.
Also If i were the brand manager at Nokia, i’d be getting serious nightmares. Instead of one of my phones being the benchmark / standard in the industry (e.g. N72 vs. Nokia 97) or even the current E72 phone being launched thought cool enough to define a new standard, i’m nowhere in the tech leader’s category. Instead for free my main competitor is gaining publicity at my expense. Though the questions were handled very deftly (full marks to Imran), it just shows that people belief that Nokia’s losing its technology lead to its competitors. Even during lunch the general conversation centered around a lot of topics but what was launched.
Now I agree completely that most of the sales for Nokia comes from mid-low end phones especially in the sub-continental and Chinese markets. Unlike the west also, we simply can’t afford iPhones or most smart-phones. We pay full price for ‘Unlocked’ phones rather than having them subsidized through telecom packages, thus Nokia’s offerings really makes sense in our price conscious markets. However, does the strategy of keep pumping out so called “new models” with minor differences (e.g. 6303, N95, N86, 7310, 7510 etc…) really work? Do potential customers of these phones really care if the cam has been “upgraded” or not? If sales are increasing whilst profit is shrinking, so does it still make sense to keep pumping out so called “new models” constantly? More importantly when YOY the sales results are showing that the strategy is not working, why is the strategy not being changed.
In marketing, we have a saying that ‘Less Is More’. Yet Nokia is increasingly trying to ‘cater to all markets’ and segments, not noticing that these are not the markets of a decade ago. GM had the same problem with low end Japanese imports (Chinese mobiles anyone) and premium brands and tried to get out of the situation then by launching Saturn.
Fundamentally, there are two ways to increase sales: (1) Expand the brand, or (2) Expand the brand’s market share.
Most companies focus on the first way, expanding the brand. While this might seem to work in the short term, expanding the brand will eventually weaken the brand and leave it in worse shape than before the process began. While it’s more difficult to expand a brand’s market share, this is the better way to go. The larger the market share, the more powerful a brand becomes. When a brand reaches 50 percent or more market share, it becomes so dominant that it is almost impossible for a competitor to overtake.
Perception dictates reality. Does Starbucks coffee tastes better because the consumer thinks it tastes better or is it really better?
The larger the market share, the more dominant the brand, the greater effect the brand has on the consumer’s perception of reality. All candy bars are pretty much alike, because no one brand dominates the category. Every one percent increase in a brand’s market share does two things, both favorable. One, it increases the power of the brand in the mind of the consumer and two, it decreases the power of competitive brands.
The ultimate goal of a marketing campaign should be to dominate the brand’s category so the brand itself becomes a generic name for the category.
Which brings up the sad saga of Saturn.
Here is a brand introduced by GM less than 20 years ago in a highly competitive category. In 1994, just four years after its introduction, Saturn hit its high-water mark, selling 286,003 cars. That year, the average Saturn dealer sold more vehicles than the average of any other brand. That was the year the Saturn spirit was in full bloom. That was the year 44,000 owners and families attended a ‘homecoming’ at the Saturn plant in Spring Hill, Tennessee. So what did Saturn do next? Did it try to expand its market share? Or did it try to expand the Saturn brand into larger and more expensive vehicles? You’re right. Expand the brand.
A typical quote from that year: ‘Many analysts feel that Saturn will eventually need a bigger model to retain customers as they older and more affluent’, reported The Wall Street Journal in its June 17, 1994 issue. In the February 9, 1998 issue of Automotive News, Ron Zarella, then vice president of GM’s North American sales, service and marketing, was quoted as saying, We’re doing everything we can to get them a wider product range. In the March 9, 1998 issue of Automotive News, Charles Child, news editor, said: GM has to bite the bullet and let Saturn spread its wings. That is, give Saturn a full line of cars and light trucks as soon as practical. In January 1999, Cynthia Trudell took over as head of Saturn and as you might expect, one of the first things she said was that Saturn is definitely looking for ways to expand the portfolio. (Ms. Trudell was the first woman to head a car division at any domestic or foreign auto maker.) Two years later, Ms. Trudell was gone and Annette Clayton took over. The strategy didn’t change, however. My focus for the immediate future, said Ms. Clayton, is to prepare us for the SUV launch and to position us to grow the portfolio. The larger Saturn (the S series) was introduced in 1999. The sport-utility vehicle (the Vue) in 2002 and a replacement for the original Saturn (the Ion), also in 2002. When Bob Lutz arrived at GM as vice chairman responsible for product development, he sounded the same tune. In the December 13, 2004 issue of Fortune, he was quoted as saying: We’re investing in Saturn’s future because the inherent health of the brand is quite good. It just needs a bigger, more exciting product portfolio. Nothing helped. Saturn sales fluctuated over the years, but never reached the high-water mark of 1994. Then in 2004, in spite of the fact that Saturn dealers had three models to sell, as opposed to the original one, sales were only 212,017 units, down 26 percent from 1994. Average sales per dealer were only 483 units, half the level of a decade earlier.
The E-series is starting to sound like GM’s Saturn. In catering to the Corporate Category, Nokia’s losing its focus on the consumer markets (My Nokia 5730 does not sync with OVI Store and doesn’t work with OVI Suite 1.4 out of the box). Worse, it’s not even doing corporate well. There’s virtually no distinction between the different phones in the E-series. The hyped up Nokia-Seimens venture NSN is going the Nortel way. (Do read up on http://www.cn-c114.net/577/a452043.html). The technologies being deployed are starting to sound old. On the consumer smartphone front, Samsung Star has swept the market in our part of the world because of which Nokia’s launched a mega-campaign promoting the 5530 to contest it. Nokia Pakistan is also not bracing for the fact that operators are starting to bundle phones with their packages and whilst it’s going to be impossible to route Nokia from the low-end phones market in the immediate future (they make up over 80% of Nokia Pakistan’s Revenues), over time the sexier technologies being bundled with Chinese (TV anyone?????) and other OEMs manufacturer will create a dent in the market share as the category shifts from voice to other forms.
Granted there’s a huge difference between cars & phones and markets and times… however in my opinion Nokia is starting to sound the same tune. They’ve lost what made them Nokia in the first place ‘Connecting People’ and are trying to expand the brand into areas where it doesn’t belong using the same technologies over and over, pushing them to death in all their series until there’s virtually no differentiation – a death knell for the brand. Here’s an excerpt from their press release ‘… we make a wide range of devices for all major consumer segments and offer internet services that enable people to experience music, maps, media, messaging and games….’. Sounds like a serious lack of strategy. For what customers really think about their Flagship N97 check out http://www.intomobile.com/2009/10/27/video-dear-nokia-the-nokia-n97-blows-and-you-know-it.html. Toshiba’s recently announced that they’ll be mass producing a 14.6 megapixel CMOS sensor for fones in Q3 2010. Compare that to the highest Nokia 8 megs.
With the new enterprise / corporate trends like cloud computing devices, Enterprise 2.0, android, Winmo 7 (i’m really excited about this one), mobility computing, social applications, HD on phones and so much more, where do we place Nokia’s products in the upcoming smarter world especially its E-series?
Dalda Foods Pvt. Ltd. has recently engaged with their customers through an Instore Activation. Tuesday handled everything from ideation to the execution of the activity.
Dalda customers buying 10 KG/ Liters of their products got a chance to play ‘Dalda’s Wheel of Fortune’ and win great prizes like passes to the Dalda’s Iftar being held at the Maritime Museum in Karachi whilst in Lahore & Islamabad Dalda customers could win the Dalda Cooking Kit. Customers also had a chance to win Olive Oil Bottles and Dalda Dastarkhwan Magazine.
The activity is being conducted in 15 modern trade outlets in the three metros namely all Makro outlets, Imtiaz Store, Al-Fateh, Hyperstar, MySuperStore, etc from the 10th of August to the 31st of August.
This is what you’ll see when you approach the game after buying Dalda products from the store.
First the brand ambassador will tell you about the activity, the prizes and how to play the game.
She’ll tell you about the three prizes you can win if you purchase a 10 Liters / KG products. In Karachi, the highest prize is the Dalda Iftar Coupon (worth Rs. 600).
In Lahore / Islamabad the highest prize is the ‘Dalda Cooking Kit’.
She’ll also tell you that you can win prizes other prizes too such as DKD or Olive Oil Bottles.
After this, simply press the Dalda Logo on the Touch Screen and press ‘Start’. You have three turns /chances to win prizes.