MediAvataar's News Desk

MediAvataar's News Desk

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Recently, marketing guru Gina Pell coined the term Perennials, “because age ain’t nothin’ but a number”. Her argument is that the days of targeting media and products at people based on their age is over.

Perennials in her mind are ever-blooming, live in the present time, know what’s happening in the world, stay current with technology, and have friends of all ages. Perennials she says are not defined by age but by mind-set. At Zenith, we believe that marketers should take this Perennial approach, eschewing age in favour of targeting not just mind-set but also behavioural change and disposal income.

We especially need to think ‘perennially’ about targeting because in recent years there has been a fundamental shift in media consumption and a revolution in the way media is traded. Historically, reaching young people was hard as their media was scarce. The only way to socialise was face to face, this meant their consumption of media was limited. Today, the mobile revolution means that the young connect in the virtual media world of messaging and social media apps, leading to massive declines in ‘hanging out’ since 2011 and providing an abundance of youth media opportunities.

This same revolution has led to a fragmentation of audiences across multiple platforms and devices, making all audiences hard to reach through historic targeting approaches on traditional media. When you buy traditional broadcast media, what you buy is the media exposure of the audience. The price is based on the delivery of your specific target audience.

As young people are pre-occupied elsewhere, broadcast media consumption was - and still is - biased in favour of older consumers, which used to mean a high advertiser demand for younger audiences. When you buy new addressable digital media, such as programmatic display and social, what you buy is an individual’s exposure to ads across different media and platforms. This is priced just on the individual ad exposures of the specific target audiences, with other individual exposures being sold to other advertisers.

Unlike broadcast media, if you buy a young audience, you are only reaching that audience. The reason that this is an issue is that compared with other targeting opportunities available today, age is a poor proxy for potential sales conversion. This is why we need to adopt a perennial approach to targeting focusing on behavioural change, disposal income and, of course, mindset and attitude.

Implications for Marketers

• Due to the transition from hanging out offline to hanging out online, youth media is no longer scarce

• Addressable media means that you only reach the individuals you target, which means that you need to be more precise on your buying audience definitions

• Compared to the new options available, targeting by age is poor proxy for potential sales

So rather than talk of millennials or Gen Z, we should think about how to leverage digital transformation to maximise the growth of brands based on what makes them appealing in the new world of mass personalisation. The interesting thing about successful ‘millennial marketing’ has not been the reach of the demographic but rather the appeal of modern market ing approaches to a broader consumer base.

So how should we express an approach that targets people by their attitude and behaviours rather than age?

Take the re-invention of Gucci over the past few years, which saw H1 2017 reve nue up 43% and operating income up 69% year-on-year. It could be said that the sleepy sexy look and gender fluidity that Creative Director Alessandro Michele pushed resonated with consumers, but there is a lot more going into the house’s revamp than a change in aesthetic.

Michele never went out to appeal exclu sively to the under 35s, even though 50% of Gucci sales are to this demographic. Instead he created something new and fresh that appealed to ‘quirky optimists’ – and not just the clothes, but importantly the way in which they are communicated. Michele went on record to say that Gucci isn’t trying to make a political statement, and fashion observers commented that the new collection is about having fun, with figures like American actress Hari Nef embracing the new Gucci on their social media channels.

Christina Binkley of the Wall Street Journal talks about Gucci as the celebrity’s go-to brand of the moment “because it’s the hottest brand around, their photos go vi ral when they wear it, and Gucci is brilliant about working with celebs.”

Appeal to millennials is the by-product of good perennial targeting. Taking a step back and looking at the bigger picture, Gucci is simply doing it right from every angle: public relations, the right amount of accessibility, celebrity endorsement and street-style endorsement. Michele simply set out to “make Gucci a 21st century state ment of contemporary coolness.” Just be cause millennials came of age in this century does mean not that they are only ones who ‘get it’.

Implications for Marketers

Modern marketing approaches, while labelled as appealing to a specific generation, appeal to forward thinking individuals of all ages

• Digital transformation allows for better brand experiences, which are increasingly important to today’s consumer

• Winning is about identifying the audience for growth, appealing to their mindset and winning their point of change

Tuesday, 26 February 2019 00:00

OMD named Global Media Agency of the Year 2019

OMD Worldwide, an Omnicom Media Group Agency, has been named Global Media Agency of the Year by Adweek, a leading media and advertising industry publication.

In selecting OMD, Adweek cited the company’s impressive turnaround performance following a very challenging 2017 that saw the historically dominant agency fall to the bottom of all major media analyst rankings. Adweek’s story details the comeback that took place during 2018 – a journey that saw OMD win or retain over $2.6bn of business.

“It’s a great honour to be named Adweek’s Global Media Agency of the Year. Not only did we win more than 300 pitches across all geographies last year, but at the same time we more than doubled our retention rate and improved our client ratings four consecutive times throughout 2018. We also remained the most medalled agency at the Cannes Lions Festival of Creativity. When you put all this together it is simply astonishing,” said Florian Adamski, Global CEO of OMD. “But none of this would have been possible without the hard work, talent and adaptability of our people nor the trust placed in us by our clients and partners. I’m incredibly proud of what we have achieved and look forward to building on this foundation in 2019 and beyond.”

According to Adweek’s story, the turnaround began with key leadership changes, firstly by the appointment of Florian Adamski to Global CEO in late 2017 and laterally as he built out his key executive and regional leadership teams, with a blend of proven talent from within Omnicom and key hires from the wider industry.

Better decisions, faster’ became OMD’s new north star – combining brand promise and competitive positioning. To ensure it would be more than a tagline, numerous global initiatives were undertaken to inform every aspect of the business and empower OMD’s talent to deliver against the promise.

The article further credits the joint introduction of a new tech platform (Omni) and media planning process (OMD Design) with the turnaround. Omni is a people-based precision marketing and insight platform created by Omnicom. In parallel, OMD reimagined their planning process, OMD Design, a bespoke process grounded in the practice of empathy. The partnership of best-in-class technology guided by a unique process aims to empower OMD to craft more valued and valuable experiences that deliver better business outcomes.

The Adweek story concludes that, after years of global dominance, despite a difficult 2017, OMD, whose clients include McDonald’s, PepsiCo, Apple and the Renault Nissan Alliance, among many others, has delivered an unprecedented comeback and is once again at the top of its game.

In Asia Pacific, the network’s comeback includes the successful appointment of high-profile businesses such as Suncorp and Belong in Australia; The Warehouse Group in New Zealand; Singtel in Singapore; Wipro and Levi’s in India; and WH Group, Papadai, Toutiao and Amway in China. It is also evidenced by the expansion of the network’s relationship with Beiersdorf across Southeast Asia and the successful retention of the McDonald’s business in China and Taiwan in 2018.

Stephen Li, CEO of OMD APAC, added: “We are thrilled to be back on top after an incredible – and pivotal – year for our network. Throughout 2018, we have taken great strides to ensure that we continue delivering on our value proposition of being true business partners to our clients, driving real business performance for their organisations. This latest accolade is a validation of all our efforts and developments, and represents the cherry on top of what has been a truly successful turnaround for OMD. We look forward to continuing this incredible winning momentum with our clients into 2019 and beyond.”

Brands looking to embrace a mass personalisation approach to marketing need to rethink their generational targeting strategy in order to drive consumer engagement and business growth.

Targeting by age is still the accepted practice across many advertising categories. However, with fundamental shifts in media consumption and trading, combined with significant changes in life stages and consumer behaviour, Zenith believes that targeting by a traditional demographic approach is no longer effective when the goal is serving relevant advertising and personalisation of experiences at scale.

In its latest report, Generation Z is Not the Next Big Thing, Zenith advocates rethinking targeting to take a ‘perennial’ approach. The term was coined by marketing guru Gina Pell, and, embracing this, Zenith believes that marketers need to shift their focus from age in favour of mindset, behavioural change and disposable income.

Rethinking targeting is going to be critical for marketers who want to serve relevant advertising and embrace personalisation at scale,”

In the report, Zenith argues that targeting by age is no longer effective when many cultures around the world are seeing changes in the pattern of life events. As creatures of habit, we are most receptive to new brands when experiencing a life change. Historically, some of the most defining changes happened before the age of 35, but now as we are living longer and having more and different life changes, just targeting the young is no longer appropriate. As estimated by The Human Mortality Database in 2018, half the babies born in wealthier countries since 2000 may reach their 100th birthdays.

The rules are also changing when it comes to disposable income. Today, many young people around the world are struggling to find work and don’t have the same frivolous behaviours or spending habits of previous generations. According to the Bureau of Labor Statistics, 16 to 19 year olds will represent just 26% of labour participation in 2024, compared to 52% in 2000. Equally, older generations are becoming ever more determined to enjoy life, embrace new things and have more money to spend.

The statistics on a variety of measures, including alcohol consumption and sexual intercourse, show that today’s young people are not the hedonistic disruptors of previous generations. Rather than trendsetters, they are more conformists trying to make the most within the system.

“We are seeing that some of the most effective marketing approaches, while labelled as appealing to a specific generation, are actually engaging like-minded people of all generations. Rethinking targeting is going to be critical for marketers who want to serve relevant advertising and embrace personalisation at scale,” said Ben Lukawski, Global Head of Strategy at Zenith.

Campaign Palau Pledge, agency BBDO New York, network BBDO Worldwide, holding company Omnicom Group, brand Burger King and advertiser Mars top the rankings

WARC has today released the results of the WARC Creative 100, an independent global index of creative excellence in advertising, and successor of the Gunn Report. The rankings feature the most awarded campaigns, agencies, networks, holding companies, brands, advertisers and countries, based on an analysis of the results of the most important global and regional creative awards shows in the world in 2018, as determined by the advertising industry.

'Palau Pledge' by Host/Havas Sydney, is the most creatively celebrated campaign of 2018. In order to tackle mass tourism, the Palau Legacy Project, a sustainable tourism body, created a visa policy for the island of Palau to protect the nation from environmental damage.

Seamus Higgins, Executive Creative Director, Host/Havas Sydney, says: "The fact that such a human solution, created with the absolute dedication and passion to improve the world that our children will inherit has been ranked the number one campaign in the world, says something really good about what our industry values and has the power to achieve. I'm infinitely grateful to the incredible team, clients and country who made this happen."

Ranked second is '#Bloodnormal' by AMV BBDO London for feminine hygiene brand Bodyform/Libresse. The campaign centred around an online video to break taboos by showing period blood in a positive light.

In third place, 'Project Revoice' by BWM Dentsu, Sydney, for The ALS Association, a non-profit organisation tackling motor neurone disease, developed innovative technology which enabled ALS patients to speak again.

BBDO agencies have had an impressive performance around the world with nine agencies ranked in the top 100, three of which are in the top 10. BBDO New York moves up from their second position last year in the Gunn Report, to be crowned best creative agency in the world. AMV BBDO London climb to second place having been ranked #20 last year and adam&eveDDB London follow closely in third position up from fourth.

BBDO Worldwide heads the networks table for an impressive 13th consecutive year - 12 under Gunn Report and now under WARC Creative 100 - with 22 different offices contributing to their total. DDB Worldwide is in second place and McCann Worldgroup third.

David Lubars, Chief Creative Officer, BBDO Worldwide, comments on their success: "What makes me most proud of topping the WARC Creative 100 is that it's not just one agency or campaign. It's multiple agencies delivering work for multiple clients across multiple forms and platforms."

No changes to the top half of the Holding Companies league table compared to last year as Omnicom takes pole position followed by WPP in second and Interpublic Group in third.

Global fast-food chain Burger King, having dropped to 7th position last year, has bounced back to take top place in the brands table for the very first time. Nike is down from first place to second, with Pedigree in third.

On his company's achievement, Fernando Machado, Global Chief Marketing Officer, Burger King, says: "At Burger King we believe creativity can be a competitive advantage. Doing things differently, standing out, and becoming part of pop culture definitely help strengthen our brand and our business. Our marketing teams and agency partners are honoured to receive this recognition from WARC."

Mars, the global manufacturer of confectionery, pet food, and other food products, is the most creative advertiser with campaigns for Pedigree, Skittles and Snickers ranked high.

USA retains its place as the most creatively awarded country in the world by far. United Kingdom and Australia follow.

Three highlights have emerged from the world's most creative campaigns:

Driving behavioural change through participation: this year's top 100 sees purpose-driven campaigns still playing a leading role. However, by introducing an element of participation, Palau Pledge was able to do more than just raise awareness - it changed behaviour. The ALS Association, Burger King and Marmite also used a 'participation' approach.

Burger King's pop culture focus pays dividends: Three highly ranked campaigns for this year's top creative brand Burger King - 'Scary Clown Night' (#6), 'Google Home of the Whopper' (#24), 'Loving "It"' (#34) - meet Burger King's stated strategy to become part of pop culture.

Six new agencies enter the top 10: AMV BBDO, LOLA MullenLowe Madrid, Host/Havas Sydney, McCann London, BWM Dentsu and Saatchi & Saatchi York. Only four agencies retained top 10 positions in the agency ranking - BBDO New York, adam&eveDDB London, McCann New York and Colenso BBDO Auckland.

David Tiltman, Head of Content, WARC, says: "The WARC Creative 100 delivers an unbiased and transparent global benchmark for the industry, shining a light on the best creative and inspirational ideas from around the world and the companies behind them. We congratulate all those who have made it into these rankings."

Hyundai is the top car brand being considered by future buyers

Things aren’t looking too bright for the auto sector in India. Amidst high fuel prices, rising insurance costs, and the popularity of ride-hailing apps, there seems to be an industry-wise slowdown in car sales. However, the recent budget announcements such as tax exemption and TDS extension could help in stimulating demand for small cars.

New YouGov survey explores people’s likelihood of buying a new car amidst the tepid demand in the market. It revealed that around 2 in 5 people are looking to buy a car in the next 12 months.

Amongst those who are planning to buy a car, naturally, financial factors such as availability of financing solutions (53%), interest rates on personal/ car loans (41%) and fluctuating fuel prices (31%) came out as the top factors influencing purchase decisions of people. It is interesting to note that apart from these, functional factors such as availability of parking space (46%), accessibility of public transport (39%) and options of self-driving rental cars (37%) are equally important while deciding to buy a car.

With the increasing traffic and pollution levels in metros and big cities, factors such as conditions of roads, pollution levels and traffic situation can lead to an adverse impact on people’s choices. Even presence of cab hailing services impacts the decision of 38% people, who may be less inclined to buy a car in the presence of these services.

Another interesting insight is that 41% from those looking to buy a car are open to considering the idea of buying a second hand car. Expectedly, for 45% of these people the affordability factor is paramount, especially for those residing in tier- 2 cities. But what is remarkable is the influence that the availability of well-maintained pre-owned cars have on the car buying decisions of around a third of people (28%). This is a prime consideration factor for tier-3 city residents, with 42% of them stating so.

We decided to look deeper and see what brands are people considering for their next big buy. Our audience segmentation tool, YouGov Profiles, suggests that Hyundai emerges as the number one brand on the minds of the future buyers. This was followed by Maruti and Honda, who come next in line.

However, the preferences seem to vary across the genders. While Maruti is the top brand considered by men while making a purchase, followed by Toyota and Honda; for women Hyundai is the strongest brand, followed by Honda and Maruti.

Looking further into the attitudes of these people shows that these consumers are brand and quality conscious. As compared to general population, a significantly higher proportion of these people agree with the statements- ‘I have expensive tastes’ (28% vs 21%), ‘I tend to choose premium products’ (32% vs 24%) and ‘I don’t mind spending extra for good quality products’ (42% vs 34%). Brands looking to target them can make a note that they engage quite a lot with TV and Internet adverts and interestingly, their children play an important part in their purchase decisions, with 24% agreeing to the statement that they let their children influence what they buy.

Commenting on this, Deepa Bhatia, General Manager, YouGov India, said, “Contrary to popular belief in the market, our data actually shows that a considerable size of people are looking out to buy a car in the next 12 months. Although Maruti is the entry level preference of most of the first time buyers, our data shows that most people who are considering to buy a new car are looking at Hyundai instead. The attitudes of these people- be it buying premium products or spending extra for good quality, also indicate their likeliness to consider a more premium brand like Hyundai. Brands need to understand the needs and preferences of their consumers in order to make their offering more attractive to them.”

Data collected online by YouGov Omnibus among 1,056 respondents in India between 5th and 7th February, 2019 using YouGov’s panel of an online representation of India.

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