Nine on Nine

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How the year behind will shape the year ahead. Nine of Edelman’s consumer experts weigh in across the globe.

nine on nine


nine on nine Time for Some Action (01-03)

Mitch Markson, President Global Consumer Brands, Global Creative Director Without content there is no conversation (04-05)

Jackie Cooper, Creative Director and Vice Chair, Consumer, United Kingdom How Obama’s Campaign Broke Through (06-08)

Caroline Dettman, Managing Director, Consumer, United States Mexican consumers gear into crisis mode (09-10)

Zerene Kahan, Executive Vice President and Group Director, Consumer, Mexico The merging of the ox and the consumer in 2009 (11-12)

Lisa Kimmel, Senior Vice President, Consumer, Canada 9 Digital Truths for 2009 (13)

Rick Murray, President, Edelman Digital Worldwide, United States IIt’s about the daily moments of living, working and playing (14-15)

Howard Pulchin, Managing Director, New York Consumer, United States Chinese Consumers in 2009 (16-17)

Andrew Silver, Executive Director, Pegasus Communications, China An Intimate Globe, what will this mean in 2009? (18-20)

Christina Smedley, Global Managing Director, Edelman Consumer


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Time for some action Or What I learned from Jerry, Wall-e, Harvey, Sandra and Obama Mitch Markson, President Consumer Brands, Global Creative Director

2009 is here and the pundits (including us!) are lining up with predictions of what life has in store for consumers, companies and society at large in this new year. My one prediction based on a combination of political and popular culture observations as well as the general buzz, is that 2009 will usher in the beginning of a new age of “action” … meaningful action in real life and meaningful action in real life marketing as well. Spoiler alert: ads, press releases, static messages and couch potatoes be warned! Now as one who is part of the Communications industry, “action” has not always been at the forefront of discussion, nor on top of the priority list. Often (perhaps too often) we talk about messaging and more recently, conversation. “How can we position this?” “What are our message points?” “How can we get people talking about us, our brands and products?” I am all for conversation, less excited about static messaging, but most optimistic that the signs of real action are upon us and ready to break through. At Edelman, there has been a lot of good discussion about the shift from public relations to public engagement and it is my contention that true public engagement must be purposeful and action-oriented. Another term we discuss is something called “mutual social responsibility” where companies or brands act together with their publics to effect positive social change for mutual benefit. Here, the responsibility is mutual and the actions must be cooperative. For example if a greener light bulb is not used by the consumer to reduce energy consumption and energy bills, then the company won’t make the light bulb and we won’t make any environmental progress…but if both the consumer and the company take action, it’s a win-win for all. Mutual social responsibility in its most simplistic form hinges on action and the shift from me to “we.” So, what are the signs that this new age of action may be upon us? The most significant one was perhaps seen in the action oriented and community organizing success of the Obama for President Campaign. Using a combination of social networking, clever, relevant and entertaining content (remember the Will.I.am music video that spread like wildfire on the net?), amongst many other factors including Bush’s low approval rating and our growing economic crisis, the public (especially the younger public not known for voting in significant numbers) was motivated to act – turning up at rallies, canvassing neighborhoods and voting. And one of the more significant rallying cries from Obama was the notion of action not just from government or companies, but from real people in the form of public service. A harkening back to John F. Kennedy’s “Ask not what your country can do for you, but what you can do for your country.”

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Time for some action Or What I learned from Jerry, Wall-e, Harvey, Sandra and Obama Mitch Markson, President Consumer Brands, Global Creative Director

Popular Culture Embraces Action This year, the world of popular culture gave us significant signs that the need for real “action” is now a main course on the menu and that there is a growing appetite for it. First stop, “Wall-e”, the Disney feature that dramatically and whimsically demonstrates the consequences of inaction and the effects on our planet. A UK TV programme actually took twenty-somethings from the high street to the streets of New Delhi to see how their favorite designer jeans were made. The new movie “Milk” starring Sean Penn about the first openly gay politician in San Francisco focuses on the rewards and sacrifices of taking a stand and acting on one’s beliefs. Even reality shows like “The Biggest Loser” invite us to take action and fight the obesity epidemic that is sweeping our globe. “Honey We’re Killing the Kids” and “Super Nanny,” both started in the UK, give viewers real life instruction in improving one’s children through behavioral change and action. In the online world where social networking abounds, Betterplace.org in Berlin, Kenneth Cole’s Awearness.com site, YouthNoise and Causenet in the US are just of few of the social cause networking sites that have become places for more than conversations. They are call to action sites where you can activate real world aid (money, time or talent) in your community or around the world. A Newfound Citizen Motivated Action Covered by News Crews Around the World In the news, calls to action from citizens were reported from every corner of the world…from the riots in Greece to the nanny named Sandra in Mumbai who took action in the face of extreme adversity…from the Chinese outpouring of help for victims they didn’t know in the earthquake to the Thai citizen airport take-over. And on the news, a new action-oriented paradigm was replacing the passive viewership and the obsession with celebrity award shows. CNN introduced the second year of its “Real Heroes” awards and their ongoing show “Impact Your World” continues to make its programming involving -- news that can actually be acted upon by concerned viewers who are keen to make a difference. Business and Marketing Action The inaction of the auto industry in the US is demanding real action and change in product development. “We believed we could build cars and the customers would come…now we realize we have to build cars consumers actually want and need.” That was a statement by one of the big three US auto makers. Obvious to many of us, but in a world where value has become determined by imagined wealth (stocks, investments) and image rather than reality (the high cost and pride of home ownership thousands couldn’t actually afford), anything is possible. Sarkozy, Obama and Brown call for green solutions to our economic woes….making products we need for the present and future vs. making stock trades and empty capital first. Brands like Brita, Kenneth Cole, American Express, Wal-Mart, GE and others are making a commitment to be citizen brands and take action not just for their personal gain but for the communities they trade in as well. And in a recent article in Cause Marketing Forum, the idea that consumerism might be replaced by Cause-ism was introduced. So will the seeds of a more action oriented business, personal and civic life take root in 2009 and beyond? The signs are all there, but as the captain in Wall-e taught us, it takes work, risk, grit and a bit of imagination to make a move. And as many of our grandparents taught, and now many of our children teach us, actions really do speak louder than words.

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Time for some action Or What I learned from Jerry, Wall-e, Harvey, Sandra and Obama Mitch Markson, President Consumer Brands, Global Creative Director

What’s Next? Finally, what can we do to move this movement along? In the world of communications and marketing, before we say or message anything, can we first re-evaluate what we really want to “be” as companies and brands? Can we ask ourselves if what we are “doing” is relevant, making an impact, involving our customers and spurring them to meaningful action? Brands have the opportunity in 2009 to take a calculated risk, step out of their comfort zone and instead of boasting about benefits and attributes alone, see how they can rationally and emotionally make their consumer the real action hero. It doesn’t have to be a major action, sometimes small actions are the best place to start. Considering a remix of your marketing mix may be another place to start. What things could you actually “do” to help consumers, differentiate yourself and make money to boot? Today, telling your story or communicating your functional benefits may just have to take a back seat to involving your consumer in a common pursuit and building a real relationship along the way. It may take another Jerry Maguire wake-up call manifesto (“what am I doing here and does what I do really matter?”), but there may be no other way in 2009 amidst the economic downturn and the great expectations of a new generation for change and engagement. So if you’re a Jerry Maguire -- challenge your agencies, clients, colleagues and friends to “Help Me Help You.” If you’re a Barack Obama, “Yes, You Can.” And if you’re a Wall-e fighting against the system, keep moving and recharge your batteries. The age of action is upon us and it is not for the faint of heart.

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WITHOUT CONTENT THERE IS NO CONVERSATION Jackie Cooper, Creative Director and Vice Chair, United Kingdom

As we enter 2009 and look to continue to empower our clients’ profiles and their brand campaigns, we are all fully aware that shouting no longer works, and that brands are no longer in control. Against this backdrop, we turn our attention to the Content Revolution. In the Conversation Age, an inverted marketing model has led to a new set of imperatives: engage and entertain audiences, don’t interrupt them; facilitate dialogue not monologue; ‘tell’ don’t ‘sell.’ In light of such fundamental shifts, those marketing brands and services, faced with addressing a newly empowered and participative Consumer, might be justified in thinking “...so what on earth am I going to talk about?” Creative content is the ‘stuff ’ that starts conversation and collaboration. This branded output may be commercial and informative or edgy and provocative, but above all, it has to be resonant and credible to its target, compelling in its execution and carry an intrinsic capacity for interaction (comment, rating, sharing, and adaptation). Producing collateral for social currency that is distributed beyond the commercial space and exploited across multiple channels is the key to success – creating an award winning ad campaign or generating media coverage is no longer enough to be heard or cut through, or crucially, to build powerful relationships and involvement. The need for Brands/Services to become producers and media channels in their own right is a significant yet unalterable paradigm shift - and of course an incredible opportunity, facilitated by the options new technologies and distribution platforms have provided for Communication and immediate interaction. In the digitally democratized world of direct-to-consumer engagement, there has been a land grab from agencies across the marketing disciplines seeking to establish primacy of this relationship. ‘Content’ or ‘Branded Entertainment’ has become the new Communication buzzword but is misunderstood by marketers on many levels and often misappropriated by agencies eager to rescue plummeting spends. This is not about turning an ad into a viral video, a brochure into a podcast, or news releases into a company blog in order to ‘digitise’ and make more immediate corporate information - but rather a re-evaluation of agency thinking, propriety and silos to unlock a new creativity for audience engagement.The ‘flow’ from strategy and planning, through creative development and production, to distribution and amplification has been the domain of ad agencies and media buyers at particular and defined stages - protecting sizeable budgets in the process. Yet when a user generated film on YouTube can consistently reach more engaged (and self-selecting) Consumers than a bought 30-second spot, you know that the model and process needs to be reappraised. Simultaneously, the Entertainment industry has been undergoing its own radical change. Channel proliferation and the Digital Entertainment revolution have seen huge cannibalisation of audiences and loss of revenue from advertising and retail sources. Across all formats, from film and music to on-line, producers have begun looking to the commercial sector for collaborative opportunities – driven by a series of mutually beneficial needs and haves. The Entertainment industry has the collateral, creativity and desirability that brands increasingly need to appropriate, whilst Brands possess those two most vital ingredients needed by the Entertainment industry: funding and eyeballs (usually from existing communities or databases). 04


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WITHOUT CONTENT THERE IS NO CONVERSATION Jackie Cooper, Creative Director and Vice Chair, United Kingdom

Therefore, the real opportunity for credible and genuinely engaging content production lies in the potential for co-creation: - unthinkable even five years previously - backed-up by the recent relaxation of key legislation This marks a sea change in how Brands communicate and how production partners work. Brands are now able to co-operate at the development stage with film and TV companies, finding and coproducing scripts or new show formats. This is not product placement or sponsorship reinvented, rather a shared ethos and relevance. Everything can be Brand-owned. Everything can exist to hero the Brand, engage audiences, and deliver new ones for both parties. As PRs, we have always understood the need to cooperate, co-create and layer over our client’s news about a product launch or new flavour variant to give interest, relevance and credibility to a marketing story (we called them the golden rules of Sex, Fame, Humour and Controversy). The understanding of the flow, coupled with real collaborative partnership with production and entertainment properties for ultimate Brand benefit means that PR is best placed to deliver outstanding content in the new age. In an economic downturn – where advertising and media buying budgets are conventionally reduced – the need to engage audiences becomes vital as does the desire to have control and guarantee of outcome against spend. Content could finally prove itself a marketing force to be reckoned with. It is more cost effective and more immediately measurable than advertising, with the added endorsement and potency of real entertainment credentials. The real measure of success will be who brokers the relationships and how well they are exploited and amplified to ensure richer customer experiences and consumer relationships as a result.

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HOW Obama’s campaign broke through Why it highlights all that Edelman and public engagement have to offer our clients in 2009 Caroline Dettman, Managing Director, Consumer, United States

“It was a total transformation. The rules have been rewritten, and we’re never going back to the old politics.” - Peter Hart, commenting on Obama’s campaign. Hart conducts nonpartisan polls for NBC News and The Wall Street Journal and has conducted nonpartisan polls for 40 U.S. senators.

There is no doubt that the historic ‘08 election will be studied for many, many years to come – both for what went right, what went wrong and ultimately, how it changed politics as usual forever. Fact is, much of the success of Obama’s campaign serves as proof points to Edelman’s POV on how to break through to consumers in a world that is changing every day. And while Edelman can’t take credit for Obama’s victorious campaign, we can leverage this unique moment in time in the coming year to show why Edelman is best served to help our clients during what is sure to be unchartered waters in 2009. Key Takeaways on Why Obama Broke Through: Made his Campaign Personal to his Supporters. He often said the campaign was not about him but about each American and the daily struggles and successes everyone faces. His communication – whether email or text or phone call – always had a personal touch whereby people felt that they had a direct line to him. Key Takeaway: Gone are the days where a brand could be out there speaking only about the brand - be about your target’s needs first. It is important to figure out a way to make your brand a part of that need and communicate it in the right ways. Advocated his Audience to Play an Active Role in the Campaign. One of the boldest moves Obama made was the refusal of public financing. Instead, he asked his supporters to raise money and the campaign was built on $10, $20 and $25 donations made by the people of America and givingeach of them a stake in Obama’s success. At the same time, he encouraged an ongoing dialogue and exchange of ideas with his supporters, often implementing the best ideas and showcasing back the results. Key Takeaway: Give more control, not less, to your target audience so they feel an ownership in the brand’s success.

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HOW Obama’s campaign broke through Why it highlights all that Edelman and public engagement have to offer our clients in 2009 Caroline Dettman, Managing Director, Consumer, United States

Pioneered the use of Social Technology Married with Traditional Communication to Create a Movement. Obama used social media and the Internet as his “front line” for getting his message out, raising money and mobilizing voters. At the same time, he encouraged house parties to organize support and advocated going door to door (and phone to phone) for fundraising. And, he leveraged his massive fundraising with a 30 minute primetime television advertisement leading up to the election. Key Takeaway: Brands must leverage all marketing communications available – both traditional and nontraditional – to speak to their audiences in the ways that consumers are most comfortable. Empowered his Audience to Act for the Greater Good. Obama’s message was clear that in order for America to emerge stronger out of this economic crisis, we are going to have to make sacrifices and work together to accomplish our goals. He told America that it is incumbent upon people to help people in need, families to help families in need and communities to help communities in need…all harkening back to JFK’s famous quote of “ask not what this country can do for you, ask what you can do for your country.” Key Takeaway: Brands should look for ways to partner with their target to act for the greater good. A strong goodpurpose initiative, cause marketing or CSR program are areas to explore as never before to emotionally connect with the consumer mindset today. Embraced a Young, Multicultural Audience. Millennials were drawn to Obama nationwide. The connection was as psychological as it was issues based – he spoke their language and provided a new direction for this country they could believe in. To give you a sense of how Obama truly dominated this demographic, Gore carried the youth vote by two points. Kerry carried the youth vote by about nine points. Obama carried the youth vote by a staggering 34 points. The power of that is even greater when you consider that we know from past history that when you get youth to vote for one party a few times, they are more likely to vote for that party during their lifetime. And, when you take into account that they are the largest and the most diverse (approximately 40 percent are minorities) generation, this is a powerful group to have as one of the new drivers of politics. Key Takeaway: Brands should look to the diverse, tech-savvy and socially conscious millennial audience and determine if there is an authentic role for the brand to play. The oldest of the millennials are 30 years old – they are in the prime of defining careers for themselves as well as starting families. The sheer size of the millennial generation of 70 million ensures that they will soon be the driving force behind everything from the economy to politics to marketing. Represented Change and Candor during this Economic Crisis: Obama is out in front of America talking about the state of the economic crisis, the plans he has for change and the fact that everyone has a role to play. Through the proven success of mobilization of his supporters during his campaign, he has the potential to build a grassroots movement grounded in technology that harkens back to the grassroots movement built successfully by President Franklin Roosevelt that helped Americans through the Great Depression. Key Takeaway: Consumers are looking for help to get them through our economic crisis. Brands need to showcase the value they bring to consumers today – from rational assets like price, quality and innovation to emotional assets such as social purpose, access, and entertainment, among others. 07


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HOW Obama’s campaign broke through Why it highlights all that Edelman and public engagment have to offer our clients in 2009 Caroline Dettman, Managing Director, Consumer, United States

And now, as President-Elect Obama transitions to the White House in January, he is showing his commitment to continuing the successful components of his campaign as previously discussed. He has been in touch with supporters of all age groups and ethnicities advocating for ideas surrounding the economy, leveraging the power of technology and calling for a service nation. “Obama is clearly planning to bring his millions of supporters with him and make them part of governing. That could be a very big part of his new politics. Those people are going to be an enormous force for change, the likes of which we’ve never seen.” - David Gergen, director of the Center for Public Leadership at the Kennedy School at Harvard and senior advisor to presidents Nixon, Ford, Reagan and Clinton. Perhaps then the last takeaway for this piece is that brands that want to break through in today’s marketplace need to shift their target audience into advocates for their brand. Edelman and public engagement is the way forward to achieving that important shift for our clients.

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mexican consumers gear into crisis mode Zerene Kahan, Executive Vice President and Group Director, Consumer Brands, Mexico

Regardless where you go in Mexico you will most likely bump into someone who will bring up recession and mention “here we go into crisis mode all over again.” In Mexico, consumers – especially for those of us above 30 economic crisis has largely become a way of life, and is something we are used to undergoing from time to time. However, unlike previous downturns, information has played a key role in this recession, impacting consumers in a way that has no precedent therefore for the first time everyone is clueless as what to expect and uncertain of what the future holds. In more “informed” societies, news run faster and in humongous quantities; we are simply not prepared to digest such large amounts of data, comments, perceptions and opinions. Impact is clear in Mexico: consumers are scared of being unable to determine what information is wrong, overstated or simply implausible. Unlike any other event or crisis in this market, all news outlets have been reporting this recession very closely. All focused on the negative impact in Mexico: exchange rate (peso devaluated 50% in the first days of recession), lay-offs everywhere, company closures, personnel reductions, increase in gas prices but not salaries, etc. For the first time, we have really scared consumers who are concerned not only with the economic issues that affect the globe, but who are largely concerned with how external factors will affect their families and personal security, as well as environmental damage and political complications and absence of trustworthy leaders. Panic shopping took place at the end of 2008, some car dealers report higher sales in December 2008 than any other month that year. However, this will last for only so long. We are expecting unbranded products sales go up as well as fast food, as higher-end restaurants and luxury shopping are affected in 2009. Regardless of age, education or socio economic level, for once, even seasoned “crisis consumer experts” are affected and distressed by this situation.

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mexican consumers gear into crisis mode Zerene Kahan, Senior Vice President, Consumer Brands, Mexico

Men may feel their “manhood” is threatened by the fragility of the environment, affecting the way they relate to their family and society. Women, the great winners during the ’94 – ’96 crises, now face a more aggressive business mode and will struggle to keep balanced lives in a very fast paced world. Youngsters, between 15 to 25 years old, will most likely be pessimistic and will isolate further into their digital world as means to escape reality. The gap between the rich and the poor will continue to broaden further but regardless of socio economic level, everyone will be affected and reactions may vary. But while it may seem a gloomy forecast, in needn’t to be so. Companies, brands and social influencers should move into more creative ways to reach out to consumers and provide the elements that enhance their position and perceptions to build a more optimistic outlook. Companies and brands have the unique opportunity to create a better society that protects market sustainability and benefitssociety at large but that also secures future permanence of their companies/brands. Now it is the time to generate trust, permanence and solidarity through every entrepreneurial action. Companies and brands will have to create strong emotional bonds with consumers by: • • • • •

Offering family oriented products Walking the talk on health protection, family economy savings and environment protection Creating trust by being upfront and honest with their consumers and never overrating products or services Being in the “feeling good mood” but never exaggerating happiness or being perceived to live in “dreamland” Understanding population needs and concerns and providing real solutions

Current times offer a great chance for recognized brands that can use and live values in a consistent manner without magnifying pessimistic perceptions or exaggerating optimistic positions. These are times for telling the truth, but above all, to show that we can go about business with a more social concern. Once again, we will need to work harder to respond to this new crisis, but with a significant difference: “The problem was not caused in our territory,“ and probably we will now have better tools to overcome it, but that does not mean that the road to take will be an easy one to follow.

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The merging of the ox and the consumer in 2009 Lisa Kimmel, Senior Vice President, Consumer, Canada

According to the Chinese zodiac, 2009 is the Year of the Ox. I’m not a follower of any type of astrology, but I was struck when I came upon some information about what the upcoming year will represent according to Chinese astrology, and the parallels I see with what will matter most to consumers in 2009. Interestingly, the Ox signifies new beginnings, and is associated with building to last and slow-but-sure action. Although it is predicted to be a much less tumultuous year, it will no doubt be one dominated by cautious pragmatism, rather than idealism. It is now time to reflect upon all that transpired in 2008, come to terms with it and slowly take action. From my vantage point, here are nine things that will be significant to consumers in 2009 (in no particular order): Back to simpler times… 1.Authenticity reigns supreme. In a world of over-consumption, economic meltdowns and environmental crisis, people are starting to question what’s really important in their lives. We will continue to see a return to more authentic values. Consumers will long to keep it real, share and be involved with brands that they can count on. 2. Downshifting on the rise. Life is busy, but it doesn’t need to be crazy. Consumers will make different choices in 2009, seeking to find time for the things they value most. Wellness – the notion of “taking care of me” – will be important, along with the realization that perfection isn’t the be all and end all. 3. Saving is back in vogue. Consumers are reigning in their spending, resulting in the sharpest decline in 30 years. They are choosing cash over credit cards. Saving is cool again. As a result, consumers are finding creative ways to make do with less…staying home, clipping coupons and making meals from scratch. More than a force of nature… 4. From gimmick to real change. Green consumerism is on the rise, and will continue to gain traction in the year ahead. We’ve shifted from conceptual ideas on how to save the planet to what we can actually do to make it so. Look at the success of Brita’s FilterForGood campaign, which challenges consumers to make a pledge to stop drinking bottled water, or consider companies that are donating a portion of their sales to 1% for the Planet.

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The merging of the ox and the consumer in 2009 Lisa Kimmel, Senior Vice President, Consumer, Canada

5.Green can be green. From purchasing energy efficient appliances to consuming locally grown foods, there is now recognition amongst consumers that green products are not only better quality, but better on their pocketbooks. Look at the growing popularity of public transit, or the fact that travel by rail continues to rise as airlines cancel flights and raise ticket prices. A nod to the past... 6.Needing nostalgia. Given the chaotic year that we are leaving behind, consumers are looking to the past as a safe haven and bastion of familiarity. That said, brands need to make things relevant for today, but remix with things from years past. Consumers are particularly longing for things from the 1980s – remakes are planned for “The Breakfast Club” and the “Muppets.” It’s not just the ‘80s though. Speakeasies are popping up, Lego is seeing a comeback, and Sherlock Holmes and Hitchcock tributes are planned in 2009. 7.Historical bonds. Even though it may not be familiar, consumers are going back in time to make connections. As we look into the future, we also look for clues from the past to help us grow. As examples, several ancient traditions are re-emerging, from kimono cloths on baseball caps to geisha techniques for applying modern makeup to the revival of chariot racing in Rome. Interacting with brands... 8.Option overload. Consumers are tired of having to make choices, often making them feel overwhelmed and less satisfied. Younger ones are experiencing “news fatigue,” bombarded by so many different RSS feeds. Brands that listen will seek to simplify for consumers. Think the White Shirt Company that only offers white shirts, or the bike that has just one gear. 9.Brand ownership. Consumers will continue on the path of trying to seek ownership of a brand. They may voluntarily promote it and make it cooler, or try to destroy it. Smart brands will cease upon this opportunity. Check out the Garfield Minus Garfield site (http://garfieldminusgarfield.net), which makes Jon look crazy. Jim Davis’ publishing house thought it was so funny, that it’s actually made a book out of them. There’s no question that 2008 represented a year of transformation on so many levels. Based on Chinese predictions for the year ahead – where there will be a focus on simplicity and starting anew – I believe that 2009 promises to be a year where how a brand behaves, as opposed to how it speaks, will increasingly become important given where consumers are at this point in time. Actions most definitely speak louder than words.

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Brands and businesses that embrace their flaws and work with the community to solve them will outperform their competitors. Plain and simple: actions speak louder than words.

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9 Digital Truths of 2009 Rick Murray, President, Edelman Digital Worldwide, United States I’m not smart enough to say what will happen in 2009, but here’s what Pete Blackshaw, Charlene Li and Peter Kim have to say about next year. Once I read those, I figured I’d go a slightly different path and talk about 9 things I’d like to see happen next year. And here they are:

2.

There will be a direct, irrefutable link proven between authenticity – of motive communication, product, experience and actions – and business performance. FYI, we’re working on this, and have some IP that we’ll be releasing early in the New Year that begins to make that case.

Colleges will totally re-think their Marketing, PR & Journalism curriculae to ensure that the students they graduate have the knowledge and skills they need to perform at a competitive level when they enter the workforce. Our goal at Edelman is this: every person in the firm needs to be able to walk the new talk. We can all make a big dent in our cultural transformation by ensuring that the hundreds of entry level hires we make every year are smart and passionate about PR 2.0 from their very first day.

4.

Madison Avenue will bail out the news industry. Maybe I’m dreaming here, but advertisers have been underpaying for online audience and overpaying (based on a decades-old metric) for offline audience. Online news sites typically deliver up to 3X the eyeballs of their offline “parents,” yet can currently only command 25% of the rate. That gap will close dramatically in 2009.

5.

The brands that stand for something will outperform the brands that either stand for nothing, or worse, try to fake it by aligning themselves with an otherwise noble cause. Good Purpose is good business. If I had anything to say about it, Good Purpose would become an anchor – if not THE anchor – of every client’s plan.

6.

Youth and the young at heart will prevail. This will be true in business and life. If you think today’s world is just for geeks and kids, then you are about to get your lunch handed to you by geeks and kids. Think like a geek and act like a kid. It’ll keep you young (and in business).

8.

7.

Quality will rule over quantity. Many in the world of social media are obsessed with how many friends, fans and followers they have; in 2009, we will see that become taboo as people create personal filters within their own networks to keep out all but the highest quality people – those whom they find add real value to their personal conversations and communities.

Mobile carriers will get out of their own way and find a way to work together to enable marketers to execute national mobile programs. This is just as inevitable as is the fact that mobile devices will become our first choice device for all computing and communication. Hard to say if it will happen in 2009 or not, but we are an information on-demand culture, and mobility is a driving force in meeting that need.

9.

An increasing number of companies will create a C-suite level role for a lead Digital officer – someone who reports to the CEO or CXO who helps transform the entire business (and culture) from closed and controlling to open and collaborative. Social media is about social, not media; it’s about people newly empowered and excited by technology; not the technology itself. And it starts from the inside out, so Edelman Change is as important to Consumer programming as is the brand work itself.

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It’s about the daily moments of living, working and playing Howard Pulchin, Managing Director, New York Consumer, United States The dawn of a new year always brings about perceptual differences. As a collective sigh of relief and optimistic hopes seem to be in the air as the calendar turns to 2009, I can't help consider how many real differences a mere couple of years make. It was only a few years back that we were preaching "we have to reach consumers where they live, work and play"; today, we talk about "sharing information and content [primarily online]". It certainly is quite true that we are sharing more information online with each other than ever before, but it's also fair to say that we are still doing a lot living, working and playing. Take the 2008 Presidential Elections. While the Obama campaign used the web masterfully, people -- on both sides -- were galvanized, energized and passionate about the election in their daily lives. For instance, more than 70 million people tuned into their televisions for the Vice Presidential debate. Strangers came together in record numbers to meet other strangers on the live campaign trail. Conversations about the candidates, conventions and the issues ensued at gyms, workplaces and even on vacations (I received many positive comments just by wearing my candidate's campaign button while in Germany weeks before the election.) I could go on, but we all have a lot of living, working and playing to do... So in the great new year's spirit, I propose a couple of simple (right for the times as many of us are looking for more "simplicity" in our lives) 2009 resolutions to help us better engage and resonate with consumers where and they live, work and play: 1. Use real world terms and words (Perhaps I should start by replacing "consumers" with "women, men, people, etc."). Have you ever been with a friend at the airport and they stop at a news shop to get some "long-leads" to read on the plane? I haven't. Let's call them what they are: magazines. We continually talk about creating "buzz" and I still wonder what that exactly means or how we measure it. I question if people consciously distinguish between on and off line media (youtube is youtube, SNL is SNL). By thinking like real people do (and that's who we all are), we may be better able to think about their real life moments and how we can better engage them. 2. Help find solutions We all seek ways to improve, enhance and better our lives (this morning's TODAY show seemed to provide countless suggestions and tips). So let's help our brands become problem solvers. When Axe was launched in 2002, brand programming was designed to boost young guys' confidence to help them in the dating game. For the past three years, Charmin solved a huge real-time problem facing visitors to New York City -- a lack of public rest rooms. This winter, Stove Top Stuffing heated a number of Chicago's Bus Shelters (and it's been cold in Chicago). Beyond promoting brand's key functional benefits, let's consider ways they can truly enhance people's real world lives. A little help will garner a lot of appreciation. 14


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It’s about the daily moments of living, working and playing Howard Pulchin, Managing Director, Edelman Consumer, United States

3. Think collective benefits AND personalized actions Often the best programming personalizes a collective issue many face. Dove inspired women around the world to think about what beauty really meant to them. Trojan served as a catalyst to get college students to take personal pledges to do their part to improve the state of sexual health in America. We're going to be better able to engage if we dig deep and not only think about collective benefits, but also the personal contributions, actions or steps one man or woman can take. It takes a lot of individuals to start any movement. 4. Remember that individuals are three-dimensional Entertainment companies don't generally "market" to my retired parents, but they still bought tickets to see "Slumdog Millionaire" and "Doubt" in the past week, along with renting a couple of dvds from Netflix. Similarly, my cabinets and refrigerator are filled with products generally marketed to "moms" (I don't live with my mother or am one myself). It's easy -- and sometimes necessary -- to think in broad terms about different groups of people. Yet it's also very easy to rely on old stereotypes that may not allow a new group of people to learn about a brand’s offerings. As public relations experts and consultants, we're in a great position to efficiently reach different groups of people. Let's consider how people are truly living their lives today and see that long-held stereotypes are breaking down. All of the technological advancements that have brought on the changes in how we now receive and share information, have also allowed us all to more fully dimensionalize how we live our lives (and therefore engage with brands). 5. Approach programming with child-like imagination A while back, I was at a company offsite and the session facilitator asked us who were the best "magical thinkers." The answer Bart was looking for was "children" who can easily see an empty box as an opportunity. We are living in a data-driven world where so many things are tested and retested and retested...but I implore us to consider more "what ifs" than "can't do's". Years ago, when I was working at Guinness, we had a dual problem to solve of having people think differently about the stout, while at the same time, best ensuring that when people were celebrating St. Patrick's Day, they first thought of the authentic Irish brew. A few of us got really excited about a tactic of giving away a pub in Ireland to someone who lived in the U.S. Our excitement dimmed a bit when we starting asking ourselves "how are we going to do that?" Luckily our imagination overpowered our known reality to answer that question, and during the following couple of years, we immeasurably changed six people's lives (yes, six pubs were given away) and inspired thousands of others. Ultimately, it’s about enhancing and engaging We're in the business of enhancing relationships between people and brands. And people are looking to enhance their lives. Brands of all shapes and sizes can play a significant role here -- by providing information people can use and share, by providing content that makes us think or laugh, by filling rational needs and emotional wants. And my belief is that a key to enhancing relationships is to truly engage with people in a welcomed way in their daily lives be it on our favorite social networks, on the pages of our favorite magazines, while we are walking down the streets or as we are engaging in our favorite pastimes. It's moments that make up any person's day, and how we help brands engage with those work, life and play moments can a big difference.

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09

Chinese Consumers in 2009 Andrew Silver, Executive Director, Pegasus Communications, China

As we look at the state of Chinese consumers as we head into 2009 it is important to look back on three key events that defined 2008 and had a major impact on the values and behavior of Chinese consumers. The Chengdu earthquake, the Beijing Olympics and the melamine milk scandal, each in their own way, put a spotlight on the challenges and opportunities of doing business in this very large and diverse nation. While the earthquake proved to be a terrible natural disaster it also had an amazing effect of galvanizing the Chinese people to come together to help and support those affected. Government, corporations, NGO’s and private citizens responded in an unprecedented fashion that brought out the best in the country in a time of national crisis. The spirit of “doing good” pervaded as people traveled to the stricken area to volunteer and corporations were outbidding one another to see who could donate the most in relief aid. Predictably, the Olympics also had a similar effect, filling the citizens with pride as they showcased their ability to produce an awe inspiring opening ceremony not to mention the Chinese teams’ accomplishments on the medal stand. While these were both steps forward in giving China and it’s people new found confidence, the lingering product safety issues underscored by the recent melamine milk crisis, continue to undermine the trust that consumers place in industry and regulatory authorities. Each of these events has impacted the mindset and behavior of Chinese people. Here are three trends brands should be aware of as we begin 2009: 1. Do The Right Thing. There is a tremendous ability in China for business to not only tap the market for increased growth and profits, but to also invest in the country’s development through by supporting social causes and projects. As evidenced by Edelman’s recent Good Purpose consumer research, 77% of Chinese consumers would remain loyal to socially responsible brands even in a recession. The study showed that commitment to helping others—and to brands and companies that share that commitment— is by far the strongest in China compared to nine other countries. Despite the economic downturn, China currently leads the way globally in giving more financial or voluntary support to good causes. 85% of consumers in China say they are involved in social causes, the highest number in the world. 2. Empowerment. The rise of online media, particularly blogs and BBS forums, have given consumers unprecedented access to information and opinions. This channel holds tremendous power as consumers place their trust in “people like me” more so than traditional forms of advertising and marketing. As a number of cases have shown, online communities or “smart mobs” are poised to attack or defend brands depending on how honest and forthright they act. Here, as in other places around the world, brands that demonstrate their ability to listen, be transparent, and participate in the conversation with consumers will be lauded and rewarded with enhanced reputation and loyalty. 16


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Chinese Consumers in 2009 Andrew Silver, Executive Director, Pegasus Communications, China

3. Self-Improvement. Be it their homes, health and beauty, education or artistic and cultural endeavors, Chinese people are on a rapid quest to be improve their quality of life. There is tremendous opportunity for brands to partner with consumers to create experiences and learning that will motivate and inspire them to achieve. This is particularly important in the second and third tier cities beyond Beijing, Shanghai and Guangzhou. While consumers in the major cities have achieved a middle-class lifestyle with homes, cars and other modern amenities, the more rural markets lag behind in consumers’ use of new products and services. In these cities it will be critical for foreign brands to show they can connect with local attitudes and behaviors to build trust while bringing unique value at an affordable price.

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09

An Intimate Globe, what will this mean in 2009 Christina Smedley, Global Managing Director, Edelman Consumer

The end of 2008 saw the world’s most successful nations gripped by a ‘once in a century’ financial crisis. Every step of America’s remorseless and unedifying economic capitulation was mapped whilst simultaneously the other powerful developed nations in its orbit surrendered to the ‘r’ word – their decline charted like a storybook. We all knew about it within minutes through Google alerts, rss feeds or perhaps a news piece on global television networks. There were consistent similarities in reporting and the word ‘crunch’ appeared in print in at least ten languages that I have been able to find online. Often in times of economic uncertainty, countries, and individuals, become more insular. After all, and perhaps understandably, it’s hard to think about genocide in Africa when worrying about how to pay the electricity bill. But it strikes me the world is a whole lot smaller than the last time there were economic shifts of this nature and that consumers worldwide are much more intimately aware now of what’s happening to other people like them in different towns, cities and countries. The 2008 US election focused many within the 50 states on the way in which Obama ran his open source campaign and also drove home the fact that the rest of the world (ROW) cared deeply about the change he might bring to the country. As someone who spends time in both the US and in the ROW, it was fascinating to see Americans realize quite how profoundly many people of different nationalities shared the view that change was necessary. And of course 2008 had other moments of global sharing. Some of glory like the Beijing Olympics when we cheered swim machine Michael Phelps and enjoyed Jamaican Usain Bolt’s winning antics. Others were more tragic including the Chinese earthquake in Sichuan province, bringing a wave of global support, and the recent terrorist attacks in Mumbai, with the news driven by text messages and bloggers. At Edelman we have long believed that an insight can be global, and shared by consumers in different countries, if it intimately captures the essence of a core need or belief of the consumer. See the Dove Campaign for Real Beauty, or Omo detergent Every Child has the Right to Play [both Edelman clients]. With this in mind I decided to undertake a small, and not particularly scientific, study to see what issues were going to be important to consumers in different countries in 2009 and what companies and brands could do about them. [Note: Strategy One, a DJ Edelman company, is better able to do this using highly strategic and effective research] My study, although it feels misleading to call it such, was of 30 people, twelve different nationalities, (some culled from my facebook profile) and included individuals located in Brazil, China, India, Singapore, seven European markets, the US and Canada. They work for companies in sectors as diverse as manufacturing, technology, music, media, retail, and medicine; were of both sexes and included stay-at-home parents (but no hockey moms). I asked them what was going to be of most importance to them in 2009 and what they thought companies or brands needed to do for them, and here in no particular order are the top six shared themes.

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An Intimate Globe, what will this mean in 2009 Christina Smedley, Global Managing Director, Edelman Consumer

Going Back to Basics It’s clear that a shared global need will be the demand for value, for money and for keeping things simple, and many mentioned changing their purchasing behavior to keep in step with the changing economy. In Brazil and Singapore my research subjects also mentioned that brands should offer different alternatives at differing price points, an interesting challenge for the marketer but perhaps we will see the rise of ‘recession special’ products and for communicators there’s news in that. Consumers will also want to look smart about where they are shopping. We, in our programming, should develop ideas that acknowledge that and will resonate with them. Obviously Wal Mart and online retailers like amazon.com will continue to over perform in the US, but in Europe Lidl and Aldi will become badges of honor – but note there will be no plastic bags to identify someone as shopping there. So word of mouth tactics and creating localized communities to participate will be important; it’s all about the consumer and not the channel. Becoming Older, But not really… In 2009 the American Icon Barbie turns 50, as does Asterix, the heroic comic book Gaul, so beloved in Europe. Perhaps more significantly nearly all of the G7 countries (Canada, France, Germany, Italy, Japan UK and USA) will have a population median age of over 40 in 2009. The impact of boomers staying, or not, in the workforce will begin to be felt with this backdrop of birth dearth and for marketers to leave this important group out of programming will be mistake. There is also increased opportunity to find marketing platforms to address the ‘squeezed’ generation, those with children at home and parents needing assistance, something shared across many countries. But with this ‘age-ing’ also comes the cross generational blurring of shared life experiences in many leisure activities – from music to travel to movies – where generations are enjoying sharing the same events and life moments. So visible in music, as one of my UK based research group asked me ‘how many concerts have you seen entire families at this year?’ Nintendo’s Wii has been instrumental in bringing families to play together home, EA’s Rock Band brought old 70/80’s favourites slam into the heart of the ‘tween audience. At Edelman we call this ‘commongraphics’ and we believe there is a need to rethink traditional audience segmentation beyond demographics and psychographics and to look for shared needs and expectations across generations and social groups. This will play globally across communication campaigns, and brands engaging consumers in this way will drive deeper relationships. Keeping Their Jobs And everyone was so open about it! Being made redundant or laid off was top of mind for many, particularly in UK and the US, and many are making preparations for this now. Consider this; LinkedIn (the professionalnetworking site), has an average member household income of $110,000 and is seeing a new member sign up every second. Our programming should consider finding ways to engage these new stay-at-home entrepreneurs and brands that provide opportunity will surely develop advocates for life. Doing Something Better This was said in a variety of different ways, from giving more time to charity to recycling more to getting a hybrid (one purchaser for the American car industry there). Twenty of my group highlighted this. Of course there’s the risk that as companies and consumers tighten their spend that sustainability and environmentalism will fall off the priority list. [Note to marketers it seems consumers don’t want this to happen.] Hopefully with the oil rich countries now turning their attention to alternatives (Abu Dhabi hosts its first conference on this very topic this month) momentum will continue. But what of the desire to give more time, money or effort? I guess this is always a new year’s resolution for many but as brands look at communication platforms in 2009 research is showing there is still a desire and unmet need to provide consumers with a way to participate and to share the individual impact they are making on their micro or macro community. 19


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An Intimate Globe, what will this mean in 2009 Christina Smedley, Global Managing Director, Edelman Consumer

Staying in Touch (or sharing and getting back in touch) My entire group commented on the impact Facebook has had on their lives in 2008, but it’s more than Facebook it’s the more ‘open’ way they live now. About half joined in 2008 and suddenly their world has changed, they have found old friends, made new ones and shared their daily existence in a way which had you asked them ten years ago they would have found abhorrent. These constant and intimate connections will only increase in 2009, and all of our programmes, wherever we are in the world, need to provide tools and resources to enable our consumers to keep their dialogue (whatever it’s about) going. It’s cross generational themed conversation at that – which will only become more visible as Facebook Connect crawls across the internet. Also there’s a rise in cross boundary participation that is an untapped opportunity for brands – it’s not just the Xbox Live generation playing video games in multiple markets but consider the number of global women’s book clubs on livingsocial.com, the Scrabble worldwide game, and the fantasy cricket games shared between India and the UK. We should be asking what our brands or companies do to bring people together to participate with others around the world. Getting their Children to be More Globally Aware Every single individual mentioned this as a priority for them (of those that had children). This outward facing approach is growing rapidly in the US and Europe through the increased acceptance of the International Baccalaureate, with its core educational aim of developing students who in the future will create a better world through intercultural understanding and respect. The rise of a second or third language in school curriculums also reflects this – with the obvious choices being Mandarin and Spanish. We know that the millennial generation already exists in a world with few borders. For those of us attempting to reach mothers and children in our programming this is a clear opportunity and a shared need that a marketing programme could fulfill in multiple countries. We all want the best for our children and now there seems to be a tipping point in wanting the best for other people’s children too. I am sure there are many other shared global wants, desires and needs amongst consumers in 2009, and some of them will be revealed along the way, but those highlighted above give us some guiding principles as we programme. We need to be mindful as we further identify them, ideally with much better research at the core than mine, to look across axis of industry and consumer wants to provide opportunities to engage for our audiences. Most critically we need to remain nimble, the global tempo of shared news will only quicken. As communication professionals working in a more intimate world, we need to be ready to anticipate, react and adapt our programming.

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