Since the release of the IAB’s most recent Ad Effectiveness study last year agencies in Australia have re-awoken to the power of third party measurement studies to evaluate campaign success. The aim of driving further spend from traditional media into the digital space by offering bespoke research studies of this kind is a sound one.  Using methods and metrics that clients have typically used to evaluate offline media gives them confidence in the digital results and the insights themselves are often compelling (sometimes surprising) reading.

It’s also been an opportunity to redefine campaign KPIs for digital media.  While clicks, reach and the like remain an absolute necessity in evaluating campaign success, new measurement was needed to determine the impact of digital media on objectives that have not been so accountable.  Examples such as digitals ability to drive footfall and ultimately conversion in-store for FMCG clients (research that was carried out in the UK back in 2006) and lifts in brand awareness for products that are indirectly advertised to consumers (such as some pharmaceutical products) are required. 

Ad Effectiveness studies of this kind are nothing new.  A quick Google search shows that the IABs first study in this market was as far back as 2001. However the recent wave of studies, which from discussions with publishers are becoming increasingly requested by digital planners, are uncovering trends which advertisers can use to their advantage.

One such trend is time targeting. The ability to target creative by time of day is not new either but recent research has enabled us to understand how to use the technology to most effectively reach consumers with the right messaging.  For example another IAB sponsored study in the UK (report published in April 09) showed that consumers pay more attention to advertising on the web after 6pm (awareness of ads increases by almost 52%) whilst lunch times, which has been seen as a key time to buy media, actually has one of the lowest ad awareness levels (an average of 11% paid attention to ads between 12 – 2pm).  This suggests that consumers are in a different mindset at lunch and a different message is required. 

The research also noticed that awareness levels changed by age group suggesting planners should add a demographic targeting filter on top of time targeting where possible to maximise campaign efficiencies.  Recent campaigns where this has been implemented have seen increases in response rates across clients in the finance and retail verticals.

The next step is to integrate brand research more seamlessly across media channels – and even across digital channels.  This is being carried out by various providers perhaps most notably by Google which showed how lifts in brand awareness from digital display impacted search conversions, but more research is required.

Nielsen are currently the main provider of the ad effectiveness reports although other players have come into the Australian market in recent months which highlights the important role that digital is playing.  This leads to clients re-evaluating their perception of online media and its role as part of an integrated campaign platform.

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The importance and rightful home of channel planning made for a passionate (and long) debate in 2008. While the Commonwealth Bank pitch may have started the debate, it soon took on a life of its own. Polite alliances were thrown aside as agencies of all types stepped up to claim the right to decide which media should enjoy a slice of the advertising pie. We reached a public fever pitch when a declaration was made that media and advertising agencies were destined to rebundle to create a “seamless offer for clients”.

In hindsight, the debate was premature. We were in the middle of a transformative process where the direction of media consumption and our changing behaviour was uncertain. A significant advertising restructure, accelerated by the market downturn, is beginning to give us clarity around what the future holds for the structure of the industry and the concept of channel planning.

A recent survey among Australian internet users found that 'more than two in five (41%) of online Australians' published opinions specifically about products, services and brands, and 86% read through the content of others.’ As consumers are taking control of their own conversations about brands and services, the established concept of channel planning is becoming too prescriptive, brand led and more than a little arrogant. How do we apply current channel planning methodology to channels we do not control? Like the desktop publishing boom in the 1980’s revolutionised the print industry, our emerging digital media landscape will place a premium on self expression, micro- publishing and fragmentation.

Instead of leading to the rebundling of advertising and media agencies, it is more likely that media fragmentation and digitalisation will lead to both disciplines becoming ever more specialist, with turf wars over channel planning giving way to a new planning framework that leads to better collaboration and respect for each other’s craft.

Our leading advertising agencies will become ever more expert at examining a brand’s many dimensions and the interpretations of these brand personalities, to ensure a resonance to target consumers in a more complex world. Social media presses the role of the creative agency further as we need to understand the conversations about a brand that we are not able to control with bought media. How do these conversations impact on the messages we can control? More importantly, how can we foster conversations within communities that support the brand values and motivations we wish to achieve? The concept of distilling a central brand thought or personality and rolling it out across media is largely redundant simply because consumers do not share such a simple view of the brands in their lives. Now they can talk about it to a mass market.

For media agencies, the traditional media world was a comfortable place, with the Australian market being one of the cosiest. A handful of media options with a common measurement language (reach, frequency, impact) and even fewer custodians of measurement (Nielsen, Morgan, OzTam) made for long lunches and the eventual commoditisation of an essential marketing function. The media landscape coming out of the current downturn will have a new language that will deliver the value our clients require from media agencies. Discussion will turn to driving engagement, enlistment and conversion. We will view media through the lens of its impact on intention and motivation. We will be paid to listen to, and persuade media dialogue, not simply buy media. At the core of media strategy is an understanding of the client’s business objectives and the sustainability and development of their product or service portfolios.

Rather than a convergence of skills, we are more likely to see clients become more demanding of the specialist and strategic expertise of each discipline. We will be paid on the basis of the true business value we add, not the work we do. While opportunities exist for some, there will be casualties including the current concept of a planning agency. By definition these agencies were created to better control and tailor the channel planning and communications process. What becomes of such agencies when key channels become unplannable in the current context? More importantly, what room is left as advertising and media agencies strategically up-skill the growing demands of clients? A clue perhaps lies in Bellamy Hayden’s departure from the planning model by launching a media buying arm. Others will become social marketing consultants. Their success in this new field will depend on understanding that while they can foster and encourage brand conversations, only consumers can lead these discussions.

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Digital Trends

THE world has been tipping for a while, but in 2009, everything will turn upside down. Information will flow upwards. Ground up marketing will be de rigueur. Social recommendation will hold even more sway. Through integrated applications on Facebook and MySpace, users can now see recommendations from their social circle. Brands need to consider how to infl uence the infl uencers, for even a stranger can be more persuasive than a brand spokesperson. In 2009 consumers will fl ow seamlessly between offline and digital environments, as TV, mobile and the internet merge. Brands are, in a sense, particles of entertainment, or information, or utilities, competing against a digital world of constant stimulus.

Bottom up

Social networks will become even more powerful and pervasive in dispersing information, recommendations and mood. Microblogging enables mass participation with minimum effort. Some of the first pictures of the Mumbai attacks were posted on Twitter. Social media are so responsive that major media are partnering with them to improve their own offer. Yahoo! now uses Twitter as a fi lter to make its own news service more timely and relevant. CNN teamed up with Facebook for the Inauguration of Barack Obama.

Implications for marketers:

Facebook was a pivotal part of Obama’s election campaign, his page attracting over 4 million fans. Likewise, brands can demonstrate through social networks that they care about their customers – but they have to be genuinely useful or interesting to be accepted. Amazon are delivering recession busting offers and coupons via Twitter. The research potential of social media is enormous. With permission, it’s a live testing ground of social influence, leveraged by Chase in the US to develop a new credit card, in conjunction with Facebook users. Brands need to consider what their social media strategy is, fast. Of Interbrand’s top 100 global brands, 93% have had their Twitter usernames taken by somebody else.

Data visualisation

The data we’re constantly creating, as consumers and as businesses, is growing exponentially. But unless we can make sense of this data of what use is it? IBM estimate that over 80% of a business’ data sources may lie outside the company, for example, in social networks or forums. Data visualisation enables us to tell stories with information. Wordle and IBM’s Many Eyes help users analyse online text through representing the frequency of words in terms of letter size. Microsoft Photosynth collates people’s digital photos to build a 3D model of locations around the world for anyone to explore. Social news site Digg graphically represents conversations about various topics through DiggSwarm to monitor the buzz.

Implications for marketers:

A vast amount of research data is under-utilised. Marketers can use word clouds to instantly get a snapshot of what consumers are saying about their brands. They can share data visualisations with other offices to collaborate more effectively. Simple online tools like Google Trends can help them monitor consumer trends.

The Semantic Web

As it evolves, the internet is closer to becoming an “intelligent agent”, anticipating and responding to human needs – the much heralded “Semantic Web” connecting people and information. For example, the online service Twine learns about users’ preferences and automatically tags content that interests them, helping them organise, share and discover.

Implications for marketers:

Brands can create semantic services and applications to be more useful to their consumers. Personal travel organiser TripIt automatically generates a customised travel guide when users send it their itinerary.

Behavioural targeting

Behavioural targeting of TV ads is just round the corner, with US-based Navic Networks (acquired last June by Microsoft Advertising) already capable of providing this service. Navic uses real time audience measurement data and employs interactive overlays on TV ads, which can deliver SMS coupons to audiences.

Implications for marketers:

Through behavioural targeting online, brands are already delivering more relevant messages. For some, this conjures up images of an Orwellian Big Brother society, but used wisely, behavioural targeting can save consumers time and effort in fi nding what they want – like a good wine waiter! IAG insurance brands in Australia serve relevant ads to people actively searching for insurance.

Moensie Rossier Head of Strategy, Carat Blogging at www.sendupalargerroom.com

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John F. Kennedy famously said, “In a crisis, beware the danger, but recognize the opportunities.” I am not sure the slowdown in the Australian advertising market qualifies as a crisis. Our relatively flat advertising market compares favorably to Spain, Japan, Northern Europe and even New Zealand who are facing advertising reductions of up to 30% across the board.
It’s inevitable however that global advertisers, particularly those headquartered in markets hit hard by the financial crisis, will cut or hold budgets in 2009. As advertising and media professionals we have a few choices. We can pretend the whole advertising slowdown is not happening and be outraged when our clients or managers cut our budgets – the classic Ostrich in the sand manoeuvre. Alternatively, we can call our clients every week and tell them that there is no slow down and now is the time to spend more – the Kevin Rudd manoeuvre.  For many clients, both tactics are useless and will damage the agency/client relationship in the long term. If auto manufacturers are having periodic stoppages, and retailers are laying off staff, they have a moral imperative to be more efficient with their advertising and media spend. The question is, what opportunities can we seize in the current market to deliver the same or more impact more efficiently?  Here are a few suggestions:

1. Stay close to media owners
Media owners are currently under more pressure than most clients. Not only will they understand your need to be more efficient, the best media executives will offer significant incentives for an open and constructive conversation where both parties can see an upside.

2. Consider pre-paying media
Deep discounts are possible where advertisers help media owners manage their cash flow and monthly targets. Partial or full pre-payment reduces the risk for media sales teams, and also gives them flexibility with revenue and budget reporting.

3. Be where your customers are
If your advertising plans and execution have been the same for 3 years or more, the chances are that your customer base has shifted and your media spend is inefficient.  Now may be the time look at a deeper involvement with digital media, subscription TV or mobile. The only caveat is that entering these media should be more cost efficient (on a cost per exposure or impact basis) than your current media plans. This will vary from client to client.

4. Ensure your traditional marketing activity and your search marketing activity are planned and measured together
This remains the single biggest sales conversion opportunity in Australian advertising today. Search agencies such as iProspect and Outrider have specialist tools that allow you to track the impact traditional media has on search engine behaviour. This impact can be refined to generate significant increases in product research and purchase.

5. Demand better reporting and more detailed accountability
Every media spend can be more efficient, better targeted, deliver greater impact or extract better value. Media agencies would agree that clients who continually ask these questions are our most challenging clients. They are also our favourite and most loyal clients. An engaged client attracts an engaged media or advertising agency.

In a difficult market good operators break away from the average, or downright ordinary. 2009 is going to be a stellar year for some, and time to change industries for others. How we assist our clients or companies manage in these “interesting times” will make all the difference.

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Reevaluating, Reframing, Transforming

Moensie Rossier takes a look at how consumer attitudes are shifting during this period of economic uncertainty, and what it means for brands.

The global economic crisis is causing people to see their lives and brands through a new lens and acting as a catalyst for accelerated change in values and in business.

A study by Boston College recently suggested that 88% of Americans now think the US is too materialistic. People are going back to basics, realising that the most valuable currency is relationships with the people that really matter. They’re culling hordes of Facebook “friends” back to just the real ones.

Positive Psychology research suggests that they have the right idea: close interpersonal ties and social support are essential to maximize wellbeing.

As consumers rein in their consumption and reassess their values, how can marketers ensure that their brands remain meaningful? At the same time, businesses are making greater demands on staff, accelerating their transformation into the multiskilled hybrids of the future. How is your organisation adapting

GENEROSITY

It may seem incongruous, but in hard times, people are becoming more generous. Being less reliant on money for happiness, they’re finding meaning in generosity of spirit - the mutual support of family and friends. This is apparent in community cooperatives, in people’s willingness to reduce their working hours so that their co-workers can keep their jobs, and in greater engagement with brands that support communities.

Sociologists at Harvard Medical School point to the contagious nature of happiness and generosity, which can be transmitted via social networks.

What this means to marketers: By reflecting consumer values of generosity and kindness and supporting communities, brands stand to gain. For example, through ColaLife.org, Coke’s global distribution network will help deliver medicines to the world’s poor. Nestle flooded Tokyo with cherry blossom, as a symbol of goodwill towards exam-takers, to help defuse a stressful situation.

Brands that trade on optimism, helping people celebrate the good things in life, will be remembered.

Insurance company IAG’S “Unworry” campaign captures the mood. This is in keeping with theories of social influence.

Spending time with positive people and brands reinforces positive feelings and behaviour - which is why people have exercise partners.

In general, brands that offer better deals and/or better experiences, that help consumers through tougher times, will generate goodwill.

BIGGER PICTURE

The economic crisis and our fragile planet have highlighted just how interwoven the threads of global society are and how important it is to see the big picture.

Half stories are increasingly seen as half-truths and people feel a greater need for integrated knowledge. New publications such as The Week deliver a digestible overview of world news.

Software mashups, combining different online data sources, such as location and retail prices, help deliver richer contextual information. Brands are increasingly telling the “life histories” of their products.

What this means to marketers:

Telling consumers the whole story, not just a part of it, helps drive engagement and perceptions of authenticity. Out- door apparel brand Patagonia tracks the environmental impact of its garments from design to delivery online at The Footprint Chronicles.

Brands can deliver timely, contextual - hence, more useful - information to consumers their mobiles. One way of doing this is through branded applications.

Guinness provided fans visiting Hong Kong for the Rugby Sevens with a spoken translation of key phrases, helping them direct taxi drivers or find the nearest bar.

Travel brands can use “augmented reality” technology, which allows information from the web to be set against images viewed with a mobile phone, instantly providing the history of a nearby landmark, or the menu for a restaurant.

INGENIOUS HYBRIDS

The internet has, for some time,encouraged user creativity. Now, forced to respond to change, people are becoming even more adaptable. Boundaries are blurring between genres, with creative and technological skills increasingly in demand.

As a result of mergers and redundancies, staff are retraining in parallel fields. Reduced workhorses are performing cross-functional roles.

This is likely to raise ingenuity in the future, with hybrid staff drawing on different, related skills to arrive at new solutions - rather like a human mashup.

The hybridisation trend extends to brands, which are flouting category conventions and pushing into new market spaces.

Playstation’s LittleBigPlanet is a hybrid online game and social network. Levi’s, Procter & Gamble, Coca-Cola and Starbucks all have their own music labels. Musicians Groove Armada just signed up with drinks brand Bacardi, rather than opting for a normal record label.

What this means to marketers:

To what extent is your organisation creating hybrid brands, or welcoming hybrid people to gear up for the future? Rather than just recruiting people who have always done the same role, consider “mashing up” your staff and harnessing new combinations of skills, such as TV production and strategy in marketing roles.

As the adage goes “lf you always do what you’ve always done, you’ll always get what you always got.”

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