Exchange4Media Conclave

Rahul Welde

VP Media Unilever

Asia AMET

Slowdown

New Rules ?

The fallout from the slowdown

• Wake-up call across the spectrum

• Renewed focus on costs

• Heightened competition

• Back to basics

Widespread impact on Media and Communication

What are the new rules ?

Are there any new Rules ?

What are the new rules ?

Are there any new Rules ?

Two big themes will ride the future

• Ideas

• Accountability

Accountability is in sharp focus

• Return on marketing spends

• Agency – Performance/Delivery

• Role of Procurement is here to stay

• Enhanced audits/controls

Return on Marketing Spends – An ongoing challenge

• Consumer value – topmost priority

• Importance of In-store activation

• Greater attention on Analytics

• Balance between Efficiency and Effectiveness ?

Agency Performance is under focus

• Sharp challenge on legacy relationships – surfeit of pitches

• Stronger linkage to delivery – the new norm– Agency performance – Brand performance

Role of Procurement and Audits

• Paramount to good governance – Witness = Prosecutor = Judge ??

• Relevant expertise or Bad cops

Audits and role of procurement is here to stay ;

Relevant stakeholders and not some evil witch(es)

Audits and role of procurement is here to stay ;

Relevant stakeholders and not some evil witch(es)

Great Ideas still rule

Great Ideas still rule

New rules/models of idea generation

and execution

New rules/models of idea generation and execution

• Big ideas that travel

• Non-linear process

• Network approach

• Crowd / Open Sourcing

Big Ideas that travelAXE Wake Up Service

• Integrated campaign leveraging new media

• Activated on all channels to drive a sexy mobile application

• Results • Awareness up to 80%, Cool/Stylish/Trendy 38% • Purchased more than twice up to 36.8% from 14.2%

Network Approach Dove Ugly Betty - China

Collaboration - agencies, producers and media

Media Brand

Creative

Creative

PR

Media Brand Digital

Creative

PR

Media Brand Digital

In-store

Social Mobiles

Content

Ideas Generation and Execution Non-linear processes

• Life cycle of ideas – getting shorter

• Number of ideas required – more

• Speed of response - faster

• Frequency of changes – very high

Big changes in consumer landscape

• Role of traditional media

• Role of consumers

– Word of Mouth – Social Media

Requirement for communication

Content

Experience

Interact

Respond

Engage

Deeper

EnrichedFulfilling

Dialogue

Content

Experience

Interact

Respond

Engage

Deeper

EnrichedFulfilling

Dialogue

Interruption

Engagement

Yesterday’s thinkingYesterday’s thinking

Interruption

Engagement

Conversations

Today’s imperativeToday’s imperative

Kotler’s Mix

Marketing takes a day to learn……...

Unfortunately it takes a lifetime to master - Philip Kotler

Product

PricePromotion

Place

“Participation”

is

the 5th P of Marketing

Traditional mass media is still a key influencer/channel

Influence of Traditional Media is waning

• Driven by digital / new media

• Consumer perceptions and trust

Too much advertising is annoying

Turned off by the ads% agreeing

Source: TGI

15

20

25

30

35

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

%

TV ads are annoying

Enjoy ads as much as TVprogrammes

Growing fatigue and cynicism towards Marketing messages

“Shooting down advertising has become

a kind of sport”

98% of direct marketing is :Ignored……Annoying…

…Wasteful……Insulting……Irresponsible…

Source: Jonathan Bond, Richard Kirshenbaum, ‘Under the Radar - Talking to Today’s Cynical Consumer’

Trust for consumers is highest

Word of Mouth

Editorial

Advertising

US 81%

WW 70%

56%

55%

55%

59%

2006 eMarketer

The degree of friendship remains the strongest driver of influence

“Thinking about sources of information about products or services that you use, how much do you trust these sources?”

Base: 13,076 European online adults and youth

Source: European Technographics® Media, Marketing, And Social Computing Online Survey

Male

Female

(4 or 5 on a scale of 1 [don’t trust at all] to 5 [trust completely])

65%

39%

34%

35%

30%

29%

28%

19%

17%

14%

67%

36%

36%

34%

32%

31%

27%

20%

18%

15%

Opinion of family/friends/colleagues

Information on a manufacturer's Web site

Consumer review on a retailer's site

A review of the product or service in a newspaper or magazine or on TV

Information you find via a search engine

Consumer review on a product review site

Information on a retailer's Web site

Information in online chat rooms or discussion boards/forums

A review by a blogger/on a blog

Email newsletters

Emergence of Social Media

Why does social media matter?

Exploding• Millions joining everyday

• Active Social Networking

• Billions of “Tweets”,”Likes”

• 400 Mln + Facebook users

• 200 Mln + Mobile SN users

1.335,870,000

1,177,128,000

308,692,000

350,000,000

Why does social media matter?

Engaging

• Avg time: 5hours:35min/month

• 42% have uploaded a photo• 15% have uploaded a video• 12% have authored a blog

• Communicating Online?– 33% use Facebook – 44% use eMail– 23% use other Social Tools

Source: GroupM 2010 consolidated figures

Enormous Influence

Marketers may ignore social media….

….But Social media will not ignore marketers

Paperchase Stationeries in UK face outrage from Twitter users seeking Valentines Day boycott over possible copyright infringement

OriginalArt

Proliferating Consumer Content

Source: eMarketer 2007

Worldwide users of consumer-generated content (millions)

2006

2007

2008

2009

2010

2011

128.0

147.5

169.7

195.7

225.8

253.6

“Participation”

is

the 5th P of Marketing

Consumer participation is the big shift

and an opportunity.

Consumer participation is the big shift

and an opportunity.

• Leading meat snack brand in UK

• Targets young blokes and kids

Peperami - Redefining MarketingPeperami - Redefining Marketing

Redefining Marketing

• Leveraging internet, social media, communities

• Disruptive approach – no agency

• “Crowd-sourcing” as a way of life

• This is not UGC !

What is “Crowd-sourcing”

• Distributed problem solving

• Social media strategy where online users come together for a common interest or task, to exchange ideas, information and opinions.

• Quickly disperse on completion – not in control

of the marketer.

How does “Crowd-sourcing” work ?

What is Peperami’s disruptive approach

• No advertising agency

• Advertising brief farmed out on the internet

• 1200 responses in 6 weeks

• Idea shortlisted and converted into a campaign

Benefits to Peperami

• Access to many more ideas

• Fraction of the conventional cost

• Output as strong as conventional route

• Open-sourcing for more engagement possibilities

Ideas Factory !

Great Ideas still rule

The rules are changingThe rules are changing

• Big ideas that travel

• Non-linear process

• Network approach

• Crowd / Open Sourcing

Summary

Two big themes will ride the future

• Ideas

• Accountability