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Tuesday, 21 November 2017 00:00

Growth in Marketing Budgets Stalled in 2017

Shift Gears. Keep Your Momentum

Two-Thirds of CMOs Plan to Increase Digital Advertising Investment, Despite Spending Cuts

Growth in marketing budgets has stalled after continued increases over recent years, according to a survey by Gartner, Inc. The survey found that marketing budgets hit a plateau in 2017 after three years of growth, with budgets falling from 12.1 per cent of company revenue in 2016 to 11.3 per cent in 2017, representing a return to 2015 levels.

Chief marketing officers (CMOs) have modest expectations in 2018. Only 15 percent say they expect a significant increase in budget; 52 percent expect a slight increase. One-third expect their budgets will be cut or frozen.

Gartner's 2017-2018 CMO Spend Survey was conducted from June through August 2017 among 353 marketing executives in North America and the U.K. at companies with more than $250 million in annual revenue.

"While the descent is not yet steep, it still poses difficult questions for chief marketing officers," said Ewan McIntyre, research director at Gartner. "Previous budget increases have come with weighty expectations, some of which have yet to be met. The time has come for marketing to show its financial management credentials, proving it can deal with financial constraints, assume accountability for business performance, build budgets based on future returns rather than past assumptions, and grow the business while making hard choices."

2017 has been a year of significant macroenvironmental upheaval, in terms of both global politics and natural disasters — North Korea, Brexit and hurricanes Harvey, Irma and Maria, for example. Marketing is not immune to the business impact that stems from such incidents. There is also evidence that CMOs may have become distracted — either by a heavy focus on operational and tactical measures of performance, or by large, cross-functional initiatives such as customer experience (CX) programs that have yet to provide hard economic benefits.

"The risk is that CMOs are either being too nearsighted to be strategic or too visionary to deliver against marketing's objectives," said Mr. McIntyre. "The result is a lack of focus on the metrics that matter to CMOs and the business — how marketing activities deliver return on investment and profitability to the organization."

Not all organizations have felt the impact to the same extent. Extra-large businesses have been shielded from cuts thus far, and cuts have varied across industries, with retail and manufacturing hit hardest. While Gartner predicted these cuts, they will come as a surprise to many CMOs. Only 14 percent of respondents surveyed in last year's CMO Spend Survey anticipated cuts in 2017, meaning many CMOs will be ill-prepared for change. CMOs need to think and act fast, ensuring they continue to meet the growing business expectations or further cuts will be ahead.

Expect Increased Investment in Digital Advertising

The survey found that two-thirds (67 percent) of CMOs plan to increase investment in digital advertising, while traditional media faces budget losses. More than half of CMOs expect their investments in event marketing and partner/channel marketing to fall or flatline, with 63 percent of marketers stating they expect flat growth or cuts in offline advertising investment. At the same time, investments are growing across a range of digital channels, including websites (61 percent of CMOs expect to increase investment) and mobile (59 percent expect to increase spending). CMOs also show a strong and continued commitment to social marketing, with 64 percent planning to boost budgets.

"The shift to digital away from traditional media reflects changing media consumption habits of target audiences," said Mr. McIntyre. "However, without capabilities like marketing mix modeling (MMM), CMOs risk cutting away at channels based on gut feel, irrespective of the journeys their customers and prospects actually take to buy, own and advocate their product and brand. These journeys likely include a range of digital and traditional touchpoints, which interplay and integrate with each other."

Measurability is a contributing factor to digital media budget growth. CMOs' focus on analytics reflects the need to demonstrate marketing and advertising performance and effectiveness to the business. The multichannel journey demands that marketing leaders go further than channel performance metrics and challenges them to employ advanced analytics to answer the elusive total marketing ROI question.

CMOs Are Focusing Budgets on Existing Customers

Marketing logic dictates that it requires more resources to acquire a new customer than to retain or grow an existing one. Consequently CMOs' budgets have become heavily skewed toward retention, with budgets dwarfing acquisition budgets by a ratio of two-to-one. However, this ratio can only be justified if it reflects the profitability existing customers bring to the business. Valuable marketing budget may be diverted to nurturing the wrong customers — those that are a long-term drag on profitability because they buy low-margin products, buy only during promotions or have high servicing costs. Furthermore, discarding the value of acquisition may harm the long-term financial health of the business.

Martech Spending Feels the Squeeze

Marketing technology (martech) spending has fallen by 15 percent in 2017, as CMOs pull back on previous high spending commitments amid concerns over marketing's capability to acquire and manage technology effectively. Martech continues to account for a significant proportion of CMOs' spending power, with 22 percent of the total marketing expense budget allocated to technology. However, this is a significant drop year over year, as last year's survey reported that 27 percent of marketing budget was allocated to martech.

The movie, Blade Runner 2049, directed by Denis Villeneuve, is a worthy sequel to the 1982 original, Blade Runner, set in 2019 Los Angeles. In the world of brands the original was also known as the product placement curse because many of the brands in the film encountered business problems soon after its release, and some no longer exist.

The sequel certainly provides an interesting vision for marketing and brand communications in the not-so-far-off future and raises questions about what marketing might look like in 2049, explains Jane Ostler, managing director, media and digital in Kantar Millward Brown.

Tuesday, 21 November 2017 00:00

Ogilvy Bangalore creates new film for Titan

Titan Raga in collaboration with fashion designer Masaba Gupta has launched a new line of watches which reflects both Raga’s legacy of creating stunning time pieces and Masaba’s quirky approach to design. Each watch has been created keeping in mind the sensibilities of the young Indian woman.

Conceptualised by Ogilvy Bangalore, the film is fun, playful and embraces the flamboyant use of traditional motifs. And for this very reason, we created an advertising campaign which reflects this essence of the collection. ‘#TickTalk’ is a conversation about tradition, design, quirks and time with Masaba Gupta. In the film you can see how her vision for this collection comes to life, watch by watch. Inspiration to the creation.

Since the watches are so distinct and unique to this collection, they are at the core of the communication. But as always, the campaign also presents a point of view that resonates with Titan Raga and women in their 20s’.

Mahesh Gharat, Chief Creative Officer, Ogilvy Bangalore: It's for the first time that Titan Raga has collaborated with fashion Designer Masaba to launch a collection of this kind. It's quirky, young and playful. We wanted the communication to reflect that same essence. And appeal to women in their 20s. The film showcases the watches in their true glory and the narrative complements the philosophy behind the collection. Right from the concept stage to the final output, this film is the perfect example of how the team at Ogilvy worked in tandem with Vijay and Dharam of Hungry Films, to create this world of imagination and wonder.

S. Ravi Kant – Chief Executive Officer, Watches & Accessories Division, Titan Company Limited: We have associated with Masaba Gupta, a leading designer known for her striking motifs and bold designs that resonate with the ‘Young Woman’ of today. This partnership has resulted in unique and differentiated designs; each timepiece has a unique story to tell. This Limited Edition Collection blends the Feminity and Romance of Raga with the Tribal and Pop Art signature look of Masaba. The Titan Raga-Masaba Collection is a testament to the Raga brand which has elegantly and fashionably evolved over the years to suit every woman and every occasion.

CREDITS

Created by: Ogilvy Bangalore
Group Chief Creative Officer & Vice Chairman: Sonal Dabral
Chief Creative officer: Mahesh Gharat & Azazul Haque
Creative team: Cynthia Unnikrishnan, Varun Katyal, Anoop Sathyanand, TK Radhesh
Executive Vice President and Head of Advertising – South: Tithi Ghosh
Account Management: Sindhu Menon, Akshatha Poojari, Shivani Agarwal
Planning: Sreenesh Bhat, Easo John
Agency Producer: Rajib Baruah
Production House: Hungry Films
Director: Vijay Sawant
Producer: Dharam Valia
CG: Yambo Studio
Team Hungry: Vipul Indulkar & Pratim Shankar
Music: Vinayak Manohar & Chirantan Bhatt
Cast: Masaba Gupta

 

The inspiring journey begins from 10th Dec every Sunday at 7pm

Star India’s flagship channel Star Plus and the global digital platform for ideas - TED, come together to India to create a unique collaboration never seen before on Television. A limited edition series Ted Talks India Nayi Soch, launching December 10 will span across 7 Sundays, is all set to inspire the nation to embrace and celebrate ideas.

Social conditioning, rote learning and risk aversion are the culprits that stop us from letting our ideas come to life, which sometimes comes in the way of us realising our vision to be an innovation powerhouse.

This cultural insight is at the heart of the campaign of Ted Talks India Nayi Soch, the first look went live on November 18, 2017. Two films ‘Gudiya’ and ‘Bobby Ka Idea‘ focus on how ideas that could have potentially provided a way out of the drudgery of life are systematically discouraged and killed. #DontKillIdeas is the central idea on which the first look of the marketing campaign is based on.

Gayatri Yadav, President, Consumer Strategy and Innovation, Star India says, “It’s an important and pertinent message from the brand that encourages new thinking (Nayi Soch), about how a seemingly ordinary idea comes with the immense power to transform lives.”

Narayan Sundararaman, Business Head, Star Plus notes, “Ideas are often dismissed as figment of people’s imagination. Yet, every great achievement, discovery or invention starts with an idea. It’s time we put a premium on ideas. All of us at some point in time or the other have been victims of our ideas being killed or have been responsible for killing ideas. These simple slice of life films bring out this point vividly and with a disarming charm. The films have been conceptualized by the creative agency Leo Burnett India and directed by Nitesh Tiwari of 'Dangal' fame”.

The inspiring journey begins from 10th December Sunday at 7pm. #DontKillIdeas

Monday, 20 November 2017 00:00

What Will Marketing Look like in 2049?

The movie, Blade Runner 2049, directed by Denis Villeneuve, is a worthy sequel to the 1982 original, Blade Runner, set in 2019 Los Angeles. In the world of brands the original was also known as the product placement curse because many of the brands in the film encountered business problems soon after its release, and some no longer exist.

The sequel certainly provides an interesting vision for marketing and brand communications in the not-so-far-off future and raises questions about what marketing might look like in 2049, explains Jane Ostler, managing director, media and digital in Kantar Millward Brown.

Here are a few observations for marketers:

1. SKYSCRAPER AS BILLBOARD:

Everyone is flying around in autonomous cars 30 storeys above ground in a permanently grey and rainy world. Corporate logos are lit up on the sides of buildings becoming more prominent and significant. We see the lights of Sony, Atari and Diageo, and the late-departed Pan Am and RCA among others as we navigate our way through the urban dystopia. What can a logo on its own signify? And what efforts have those brands made to raise awareness of their products or sub-brands, for consumers to make the desired associations?

2. PRODUCT PLACEMENT:

Harrison Ford in the role of Rick Deckard drinks from a special edition square bottle of Jonnie Walker Black Label scotch. He also drank Johnnie Walker in the 1982 version and the label was prominently displayed. This is a classic product placement play. But do marketers forget how important packaging is as a recognisable brand asset? And in categories where own label brands can produce similar-looking packaging, how distinctive does the packaging need to be?

3. FLYING VEHICLES:

An old clunky metal police vehicle driven around by K (Ryan Gosling), an LAPD officer, is clearly branded as a Peugeot. It's certainly not the slick shiny oh-so-clean vision of a concept car we usually see from automotive manufacturers in movies. And it's not quite autonomous as Gosling flies it around. Does this position Peugeot as future-facing and fearless? Or have they taken a massive risk? The Peugeot brand recently re-entered the US with a ridesharing service in Los Angeles. So, is the brand placement a flight of fancy, or a clever positioning, signifying plans to sell cars in the US again?

4. PERSONAL MEDIA CHOICE:

A holographic Elvis Presley plays on a stage in the abandoned Las Vegas casino where Harrison Ford is living and hiding out. Does this represent one's music choice on Spotify taken to its logical extreme? Artists can appear for you and give a personal performance, even if they're dead. Squeezing the most out of the royalties perhaps? Does all media become personal, driven by an algorithm?

5. ARTIFICIAL INTELLIGENCE AND ANTHROPOMORPHISATION

The movie features a character (Joi) who's a hologram operating system girlfriend who rather creepily attends to Ryan Gosling's every whim. Is Joi what Alexa, Siri and Cortana become, in 3D human-like form? Watch the 2013 Spike Jonze film, 'Her' staring Joaquin Phoenix and Scarlett Johansson if you want to see how that story plays out.

So in 2049 it looks like marketing is distilled down to simple and recognisable touchpoints (logo, packaging, etc.), to create preference. Meanwhile, service brands like Joi are powered by an algorithm, delivering a personal service for each 'customer'. Interestingly, it's a rather lonely future – there's no social element in the director's vision of 2049 at all...

Source:Kantar Millward Brown

FCB Health Earns Global Awards Healthcare Network of the Year; Area23 is Global Awards Healthcare Agency of the Year; McCann Health India Earns Both Best of Show and Grand Global

The Global Awards® announced the 2017 award-winners at their annual award celebration taking place at the New York Academy of Sciences in lower Manhattan. Guests from around the globe celebrated the award-winners at ceremonies in both New York City at the Academy of Sciences and Sydney, Australia at The Rawson hosted by Bravo!/Global Awards.

FCB Health was center stage this year earning the title of 2017 Global Healthcare Network of the Year. The network was honored with a total of 14 Global Awards and 25 Finalist Awards.

“The FCB Health network is honored to be recognized for its work on a global scale. The Global Awards feature some of the world’s best in healthcare and wellness advertising, so I’m extremely proud to be considered in such a competitive arena. It’s a testament to the commitment we have to delivering only the best creative to our clients,” said Rich Levy, Chief Creative Officer of the FCB Health Network.

Area23, an FCB Health Network Company, was in the spotlight taking home a remarkable 12 Global Awards in total, 7 for Health & Wellness categories and 5 Global Awards for Pharma categories.

Among the agency’s award-winning entries, Area 23 received 3 Global Awards for their campaign “The Hardest Crossword” (Health & Wellness) for Alzheimer's Foundation of America. The agency partnered with The New York Times crossword editor—Will Shortz to create a crossword entirely based on the story a real individual affected by Alzheimer’s. The unsolvable puzzle featured clues and answers are based on facts and events that can no longer remember, illustrating what it is like to be affected by Alzheimer’s.

Area 23’s winning work in Pharma garnered 3 Global Awards for “The Drama in RA” for RA Disease Education and 2 Globals for “Spotlight” for RA Disease Education, both entries enlighten HCP’s to see the person beyond the joint and rethink their treatment priorities by understanding that the damage of RA goes beyond just structural.



“Wow. Agency of the Year. That’s just incredible. I’ve been participating in The Global Awards since I was a mid-level writer, and Agency of the Year has always seemed a far-off goal. To make it to this level is really a dream come true. It’s been an exceptionally good year. A lot of our best campaigns all happened to hit at the same time, giving us this perfect storm of great work to submit. You see what I did there? Subtly lowering the bar for next year? I’m only half kidding though. We've got a lot of great stuff cooking back at the agency, and we’re praying we can get it all across the finish line for next year. Those pharma gods, they’re a fickle bunch. Thanks again to the Global Awards and thanks to all the amazing teams here at Area 23 who had the genius to come up with this stuff, and the determination to make it all happen,” said Tim Hawkey, EVP, Managing Director, Executive Creative Director at Area23.

McCann Health India earned both the Best of Show and Grand Global for their multi award-winning entry “The Immunity Charm” for Ministry of Public Health, Afghanistan. The ingenious campaign provides an immunization history of a child worn by the child. Borrowed from the Afghan tradition of talismanic bracelets worn by infants, the bracelet employs various beads each representing a vaccine and provides a safe-guard against lost records. Dr. Daniel Carucci, DD, MSc and PHD Senior Medical Advisor, McCann Health, one of the co-creators of the idea, accepted the awards on behalf of McCann Health India.

"Every year nearly 20 million children do not receive the vaccines they require to protect them from preventable diseases. The Immunity Charm™ will help mothers and doctors be sure that every child gets the vaccines they need," said Dr. Daniel Carucci, Senior Medical Advisor, McCann Health and Dr. Harshit Jain, Country Head (INDIA), McCann Health, co-creators of The Immunity Charm™.

The Executive Jury, split for the first time this year, utilized two specialized juries for the 2017 competition: Pharma (Rx) and Health & Wellness. These equal and separate juries judged submissions from each exclusive designation providing the opportunity to focus on what’s best in each respective category. The 2017 Executive Juries honored 20 Health & Wellness entries and 20 Pharma entries with Global Awards, in addition to 115 Finalist Awards from entries submitted by agencies from 22 countries worldwide.

This year’s Global Awards competition engaged both consumers and healthcare professionals by employing a wide variety of tactics including interactive applications, new technology, ambient advertising, humor, experiential engagement, event marketing, outdoor, viral marketing and social media.

The United States received top honors this year with 19 Global Awards, 9 from Healthcare & Wellness entries and 10 Pharma entries taking home Global Awards.

Winning entries from the US include: FCB Health taking home 2 Global Awards for “Her Endometriosis Reality” (Pharma) for client Endometriosis Disease Awareness. Weber Shandwick was honored with 2 Global Awards for “The Debate Headache” (Health &Wellness) for their social takeover during the 2016 US Presidential Election debate for client Excedrin. McCann Humancare was in the winner’s circle earning 2 Global Awards for “Psoriasis: The Inside Story (Swimmer)” (Pharma) for client Stelara and a second Global for their “Lighter Blue” (Pharma) for client Takeda/Lundbeck. The “Lighter Blue” campaign humanized and destigmatized depression’s multiple symptoms and sparked over 10+ million interactions on Facebook. Cline Davis and Mann Princeton’s “Little Lungs” (Pharma) for client SYNAGIS for their event marketing campaign featuring the Knit Big for Little Lungs live event that built awareness for RSV in Philadelphia, PA, bringing knitters and the community together and creating knitted items that were donated to NICUs.

Agencies from India were out in front with 6 entries receiving Global Awards including McCann Health India’s Best of Show and Grand Global for “The Immunity Charm” campaign. Medulla Communications was in the spotlight, earning 4 Global Awards, 2 for “Slums (Housing Colonies) for Worms” for client Zentel and 2 for “Last Words” for client Indian Association of Palliative Care for their film advocating Palliative care that revealed that most last words are heard by nurses, and not by family members.

Germany earned 4 Global Awards. Serviceplan Health and Life was honored with 3 Global Awards, 2 for their humorous campaign for “MometaHEXAL - A world without hay fever’ (Pharma) for client MometaHEXAL and a single Global for “The Truth Unveiled” (Health & Wellness) a campaign that created awareness for women who were burned in acid attacks for client IPRAS WomenforWomen. Pink Carrots PINK CARROTS Communications GmbH earned a Global Award for “Game of Pain” (Pharma) for their 3-part direct mail campaign, created for client ORTOTON®, that featured a card game for doctors showcasing typical back pain patients.

United Arab Emirates’ The Classic Partnership Advertising was recognized with 3 Global Awards for their ambient campaign “Footnote for The Breast” (Health & Wellness) for client Medcare Women & Children Hospital. The campaign tackled the taboo of talking about certain health conditions. Pebbles were placed in the shoes of women who went to mosques or prayer halls, upon returning and putting on their shoes, the “lump’s” message urged women to schedule consultation.

Australian agencies were in the winner’s circle and recognized with 3 Global Awards. Saatchi & Saatchi Wellness, Sydney earned 2 Globals one for “Protected Wallet” (Pharma) their campaign for Promozio, a generic antimalarial that protects travelers from malaria; and a second for their poster “Blown out of Action” (Pharma) explaining the dangers of whooping cough to doctors for client Sanofi Pasteur. greyhealth Australia / Sudler Sydney earned a Global Award for their TVC “Living Nightmare” (Pharma) depicting the debilitating effects of rheumatoid arthritis for client Xeljanz.

Two agencies from the United Kingdom earned Globals: Publicis Life Brands UK “Keep Life Flowing” (Pharma) for client Duodopa employed colored inks to created eye-catching visuals and animations that represent the fluidity of movement experienced by advanced PD patients on Duodopa. McCann Torre Lazur UK earned a Global Award for “Mark’s Story” (Pharma) for client Anoro, the educational piece takes the form of diary entries following a fictional COPD patient from his first cigarette at 14, to being diagnosed with COPD at 56.

NBS / Dentsu Aegis Network’s Global Award- winning “Blind Passion” (Health & Wellness) for client Flamengo connected blind Brazilian fans, who by law are provided free access to the games, with other Flamengo fans via an online platform that is accessible to the blind. Italy and China were each honored with a Global: Sudler & Hennessey Milan’s “The Escape Room” (Pharma) for Copaxone (treatment for relapsing multiple sclerosis)/ Field Force Team Building and Internal Awareness. The inspirational training course utilized an escape room concept in a custom-built hotel room and employed digital puzzles from an interactive MOA challenge to a challenge to hack into the doctor’s laptop too increase the reps’ knowledge of the drug. McCann Health China for “Looks Good on Dogs Not Her” (Pharma) for client Restylane’s print campaign that illustrated that wrinkles, facial hollows and flat cheek can be very sexy, pretty and attractive…on our pets.

The 2016 Young Globals Award Columbia College student winners Erica Barringer: Art Direction, Cassie Benedict: Copywriter, and Eric Kahl: Concept / Strategy took to the stage to accept their trophy. The students earned accolades for “Feed Your Future,” their campaign based on a creative brief for a (fictional) leading maker of diabetes medications to raise awareness about the link between unhealthy food choices, childhood obesity and type 2 diabetes. The Young Global award winners also received a paid internship with Global Awards agency partner sponsors, greyhealth group and Havas Health & You TBWA\WorldHealth also provided an internship.

An honorary award was presented to outgoing Chairperson of the Global Awards Advisory Board and Executive Jury, Robin Shapiro, Global President of TBWA\WorldHealth commemorating her 5 years of service. Throughout her tenure, Ms. Shapiro was dedicated to ensuring that the competition addressed the needs of the worldwide healthcare & wellness industry. Since her appointment in 2013 Robin has spearheaded many new initiatives for the competition including creating and championing the Young Globals competition while generating prominence for the competition and expanding its reach.

Global Awards Executive Director, Fran Pollaro announced a special on-going partnership between the Global Awards and Partnership for Drug-Free Kids, a launch of a new tradition of partnering with a cause to go along with the 2017 Young Globals brief which is focused on the opioid epidemic.

To view the complete list of 2017 Global Awards winners please visit: https://www.theglobalawards.com/winners-1/

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