Advertising + Marketing MY - May 2015 by Marketing Magazine Group

2015

advertising + marketing malaysia

MAY

MAY 2015

THE C UBE S AR E R E ADY Attend the only agency awards show in the region judged solely by client-marketers. Join us on 15 May to discover who these cubes belong to in 2015.

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ED’S LETTER ................................................................................................................................................................................................................

ARE YOU CONTENT-ED?

Elizabeth Low, Deputy Editor elizabethl@marketing-interactive.com Rezwana Manjur, Senior Journalist rezwanam@marketing-interactive.com Noreen Ismail, Journalist noreeni@marketing-interactive.com Editorial – International Matt Eaton, Editor (Hong Kong) matte@marketing-interactive.com Production and Design Shahrom Kamarulzaman, Regional Art Director shahrom@lighthousemedia.com.sg Fauzie Rasid, Senior Designer fauzier@lighthousemedia.com.sg Advertising Sales – Singapore & Malaysia Johnathan Tiang, Senior Account Manager johnathant@marketing-interactive.com Grace Goh, Account Manager graceg@marketing-interactive.com Jocelyn Ma, Account Manager jocelynm@marketing-interactive.com Ong Yi Xuan, Advertising Sales Coordinator yixuano@marketing-interactive.com Advertising Sales – International Josi Yan, Sales Director (Hong Kong) josiy@marketing-interactive.com Events Yeo Wei Qi, Regional Head of Events Services weiqi@marketing-interactive.com Circulations Deborah Quek, Circulations Executive deborahq@marketing-interactive.com

In an interview with Marketing magazine, Vaasu Gavarasana, head of digital marketing at AXA, said: “The way companies are structured, corporate comms, brand comms and product comms all sit in different silos. These silos need to be brought down for brands to embrace a brand philosophy just like established publishing brands such as Fortune or Time do.” How can marketers overcome these organisational challenges? What are some other obstacles to overcome when dabbling in content marketing? What are some of the success stories around us which can inspire us? We will look at all of that over the course of the next two days at Content 360. Don’t forget to make the most of these two days, especially from the Content Cafe, which will provide a real-life, hands-on experience for you in coming up with a great content strategy for your brands. Enjoy the conference and I hope it helps you fine-tune your content marketing strategy for 2015 and beyond.

Photography: Stefanus Elliot Lee – www.elliotly.com; Makeup & Hair: Michmakeover using Make Up For Ever & hair using Sebastian Professional – www.michmakeover.com

Editorial Rayana Pandey, Editor rayanap@marketing-interactive.com

Is content marketing the new kid on the block? Not at all, but for businesses it is more of a differentiator now than ever before. Given ever-stiffening competition, brands aren’t “contented” with the progress they have made and there is much more that is left to be achieved as far as content marketing is concerned. In my opinion, if anything, great content marketing makes a brand look inward and that’s where most brands struggle. It is tempting to start looking for content outside, hire an agency to do it and manage content just as you would manage advertising. While I’m not saying that’s a wrong approach, the most important and the oftoverlooked source of content is from within the company. Great, share-worthy content can be found in every department of a company. It is, therefore, the marketers’ job to play the curator, make sure it is in accordance with the brand values and make it visible both within the company and outside. Let’s face it – it’s not rocket science, but it ain’t a walk in the park either. Rigid silos are a legacy issue businesses are dealing with. Silos are as much a problem for content marketing as they are for any other aspect of marketing, be it social, mobile or digital in general.

Finance Evelyn Wong, Regional Finance Director evelynw@lighthousemedia.com.sg Management Søren Beaulieu, Publisher sorenb@marketing-interactive.com Tony Kelly, Editorial Director tk@marketing-interactive.com Justin Randles, Group Managing Director jr@marketing-interactive.com

Advertising + Marketing Malaysia is published 6 times per year by Lighthouse Independent Media Pte Ltd PP 16093/12/2011 (026708). Printed in Malaysia on CTP process by Atlas Cetak (M) Sdn Bhd No. 2 Persiaran Industri, Bandar Sri Damansara, 52200 Wilayah Persekutuan Kuala Lumpur. Tel: 03-6273 3333. For subscriptions, contact circulations at +65 6423 0329 or email subscriptions@marketing-interactive. com. COPYRIGHT & REPRINTS: All material printed in Advertising + Marketing Malaysia is protected under the copyright act. All rights reserved. No material may be reproduced in part or in whole without the prior written consent of the publisher and copyright holder. Permission may be requested through the Singapore office. Disclaimer: The views and opinions expressed in Advertising + Marketing Malaysia are not necessarily the views of the publisher. Singapore: Lighthouse Independent Media Pte Ltd 100C Pasir Panjang Road, #05-01 See Hoy Chan Hub Singapore 118519 Tel: +65 6423 0329 Fax: +65 6423 0117 Hong Kong: Lighthouse Independent Media Ltd Unit A, 7/F, Wah Kit Commercial Building 302 Des Voeux Road Central, Sheung Wan, Hong Kong Tel: +852 2861 1882 Fax: +852 2861 1336 To subscribe to A+M Malaysia magazine, go to: www.marketing-interactive.com ...............................................................................................................

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Rayana Pandey Editor

M AY 201 5 | a dvert i s i ng + m a r ke t i ng 1

CONTENTS

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10 MALAYSIA’S BIG PLAN What is Malaysia doing to digitally connect the disconnected? Rezwana Manjur finds out.

16 OCBC BANK AND DBS IN A SPAT OVER SOCIAL MEDIA SUCCESS But are fans and followers the best gauge of social media success? Rezwana Manjur asks.

17 THE TOUGHEST QUESTION MARKETING FACES: SO, WHAT? How can marketing overcome the biggest challenge of moving the needle for the business? MasterCard’s CMO Raja Rajamannar tells Rayana Pandey.

18 WHY ASIA-BASED SENIOR EXECUTIVES ARE MORE LIKELY TO QUIT Rezwana Manjur finds out the reasons.

26 KRAFT-HEINZ MERGER: A NEW BRAND POWERHOUSE? Going digital is on the agenda of every company and every nation. What is Malaysia doing towards this objective? A+M reports.

Industry watchers fear it may mean trouble for agencies if the firm focuses on cost-cutting. Rezwana Manjur reports.

28 ARE YOU GUILTY OF THESE MARKETING SINS? A social media analysis reveals what really riles consumers.

30 MASTER REPORT: SPORTS MARKETING Our latest Master Report explores how sports marketing has evolved in the digital age and what it means for brands.

38 THE CONTENT CONUNDRUM From storytelling to organisational readiness to embracing content marketing to budgets and measurement – here’s all that went on at our annual Content 360 conference.

SCAN TO SUBSCRIBE!

17 16 What you’ll learn in this issue: >> Malaysia’s big digital plans and what it means for the industry. >> Why is it important for marketing to truly understand the business. >> Understanding social media beyond vanity metrics. WWW.M A R K ET I N G - I N T ER A C T I V E.C O M

26 28 M AY 201 5 | a dvert i s i ng + m a r ke t i ng 3

NEWS

WANT MORE BREAKING NEWS? SCAN THE CODE TO FIND OUT WHAT’S GOING ON IN THE INDUSTRY.

Expanding Lotus Proton and its subsidiary Lotus Group signed a joint venture agreement with Goldstar Heavy Industrial for a planned business expansion of Lotus cars for the China market. The partnership is aimed to speed up the development of Lotus cars in the premium sports industry in China. The agreement has been sought to establish a joint venture company for the purpose of undertaking research and development activities in the use of efficient and advanced technology.

Hackers disrupt sites Google Malaysia has had its home page hacked. Visitors to the Malaysian site were greeted with the message, “Google Malaysia hacked by tiger-mate #Bangladeshi Hacker”, redirecting users to a page made by the hackers. MYNIC, an agency under the Ministry of Communications & Multimedia Malaysia (KKMM) and regulated by the Malaysian Communications and Multimedia Commission (SKMM), confirmed the unauthorised modifications at the domain name server for several major websites, including Google and Yahoo Malaysia. 4 a d verti s i ng + marketi ng | M AY 2015

A promotion Saatchi & Saatchi Malaysia promoted Gavin Teoh to senior account director. He joined the Malaysian agency two years ago as an associate account director and has played a crucial role in strengthening relationships with existing clients in Saatchi & Saatchi. He reports to Adrian Sng, managing director of Saatchi & Saatchi Malaysia, and continues to lead various account servicing teams at the agency.

Lifestyle portal The Star Media Group launched a portal called Star2.com for The Star Online’s Lifestyle readers to get their daily news fix. The launch came as part of the 20th anniversary celebration of The Star Online in an effort to drive the Malaysian news portal to be a bigger and better player in the digital content industry. Lifestyle is one of the fastest growing channels of The Star Online. New leader Kent Wertime, chief operating officer of Ogilvy & Mather Asia Pacific, has taken on the additional role of chairman of Ogilvy Malaysia. This came as Anand Badami, who has been group managing director of Ogilvy Malaysia since 2011, moved to Singapore to take on a global client leadership role for the agency. He will spend a significant amount of time in Malaysia to oversee the business while a new country head is being identified.

Boosting budgets Nestlé Malaysia is set to boost its marketing budgets to invest further in its operations in the market. Nestlé has a total of nine plants in the region, operating seven in Malaysia. Managing director Alois Hofbauer said Nestlé planned to spend RM207 million to extend its noodles and new product production lines, as well as completing its Sri Muda plant. Boost for potential entrepreneurs The founder of AirAsia, Tan Sri Tony Fernandes, co-founder of Tune Group, Datuk Kamarudin Meranun, and co-founder of ECM Libra Financial Group Bhd, Lim Kian Onn, launched Tune Labs, a start-up incubator and accelerator programme aimed at identifying, mentoring and funding entrepreneurs across Asia. Funding for the incubator, amounting to RM5 million, will be provided by the trio, with more funding to come if the need arises.

Pitching for Malaysia Airlines Malaysia Airlines has called a pitch, with at least 15 network agencies involved, sources have told Advertising + Marketing. Several branding agencies from Singapore are also involved. The brief involves three components: visual identity, brand pitch and creative execution. The incumbent agency is Ogilvy & Mather. The airline stated its intentions to confirm the agency by July.

Safety first Nissan launched its 2015 safety campaign at LEGOLAND Malaysia Resort. The campaign aims to raise safety awareness and enhance essential road safety skills for children and adults. The campaign this year focuses on educating young children and adults through two programmes. One is a Kids Safety Carnival called “My First Safety Programme with Nissan” and the other is the “Safety Driving Experience”.

Volkswagen seeks agency Volkswagen is looking for an agency to help with its branding. Several network agencies are involved at present, and the brand is looking to consolidate Volkswagen’s digital and traditional marketing duties. The agency will be tasked to help tackle brand issues for Volkswagen, with duties such as customer relations and CRM also in the brief. The first round of the short-list has been targeted for early June. Proton pride The International Trade and Industry Ministry in Malaysia has insisted the Malaysian national car Proton is on par with other premium car brands such as BMW. The International Trade and Industry Ministry told parliament the Proton car had what it takes to compete with global brands such as BMW because the newer models had “advanced technology, high quality and performance”. WWW. MARK E TING-IN TE RAC TI VE . C OM

NEWS

Courts celebrates In celebration of its 28 years in Malaysia, Courts launched a nationwide brand campaign, “Senang Sahaja, Courts Ada” (Living Easy with Courts) which is supported by a new Courts price promise. With the insight of local consumers’ concerns about the increased costs of living, the campaign tag line was created based on the Hidup Senang dengan Courts (Live Easy with Courts) promise.

Pizza Hut appoints Mindshare Pizza Hut Malaysia appointed Mindshare Malaysia as its media agency. Pizza Hut Malaysia is rapidly expanding in the retail food industry in the market and appointed Mindshare Malaysia with the assignment scope of covering the full suite of media services. This includes planning and buying paid media. The agency will also manage Pizza Hut’s social media assets as well as business and consumer data analytics. LEGOLAND Malaysia gets PR help LEGOLAND Malaysia Resort appointed The Hoffman Agency as its PR agency. The appointment came following a pitch and the agency will be working on the account until 2016. The Hoffman Agency will provide strategic counsel for LEGOLAND Malaysia and help drive all public relations operations to raise its profile in the region. LEGOLAND Malaysia Resort handed the task of Master Builder of its brand presence in Singapore to The Hoffman Agency. WWW.M A R K ET I N G - I N T ER A C T I V E.C O M

MEC’s Law Chan Keong exits MEC Malaysia’s managing director Law Chan Keong joined People ’n Rich (PNR) Holdings in May as CEO of media assets. Law is tasked to aggregate PNR Group’s media assets’ digital capabilities for PNR’s client partners such as MCC, Enrich and Velocity. This is to ensure a more holistic offering to clients. Law will work closely with Richard Steven, group managing director of the company.

Maxus Malaysia appoints new MD Maxus Asia Pacific appointed Glynn Honey as managing director of its Malaysia office. Honey took over the role from Lorraine Capel who left the agency late last year. Honey will report to both Ajit Varghese, Maxus CEO of Asia Pacific, and CEO of GroupM Malaysia, Girish Menon. Honey joined Maxus Malaysia following a stint at M&C Saatchi Australia for more than two years where he was the MD for the agency.

Driving publicity Volkswagen Group Malaysia handed its public relations account to Geometry Global Public Relations – a PR unit under Geometry Global Kuala Lumpur. The agency is responsible for steering the brand’s communication, public reputation, perception and critical stakeholder issues while navigating the brand forwards in an increasingly fluid media environment. The team merges insights from traditional, digital and social media.

Monkeying around Hard Rock Café removed an advertising campaign in Sabah after it drew criticism online from netizens and the Malaysian authorities. The ad was intended to promote the brand’s recently opened branch in Sabah’s capital, Kota Kinabalu. The promotional campaign featured a digitally edited picture of an orangutan rocking out on a guitar with its mouth wide open.

Mirum Malaysia hires MD Mirum Asia Pacific appointed Jordan Chua as managing director of Mirum Malaysia. In his new role at Mirum, he will oversee the overall operations of the business, partner with client stakeholders to drive business transformation projects and serve as the bridge between clients and Mirum’s consulting and digital marketing agency teams. He joined Mirum from TBWA Group Kuala Lumpur where he was the digital planning director. Pizza contest Pizza Hut and social media agency Rally Malaysia ran a real-time interactive social media campaign on Twitter last month. Launched solely on social media, the contest was aimed at driving awareness for the new pastry crown pizza. The brand called on Twitter users to suggest the most creative culinary concoctions. The pastry crown pizza was a new product innovation born from the mash-up between sweet buttery pastry and delicious pizza.

Joining forces Changi Airport Group and the Singapore Tourism Board (STB) inked the biggest deal yet to market Singapore and the airport. This is a two-year partnership for joint marketing campaigns that will be launched globally and in “mutually aligned key markets”, aimed to build affinity with travellers. This initiative is aimed to shape long-term global perceptions of both Singapore and the Changi Airport.

Eyeing expansion Entrepreneur and media executive Harry Dewhirst has invested in Mutant Communications and taken a stake in the company. He joined the board of directors as non-executive chairman, and will contribute to the company’s business strategy and growth plans. The funding is set to propel the Singapore-based PR and content marketing agency’s expansion in 2015. Mutant is focused on expanding its three practices – HR and recruitment, luxury, lifestyle and events, and media and technology.

Raising standards The Advertising Standards Authority of Singapore (ASAS) is set to work with industry players, including social media agency Gushcloud, on a set of ethical guidelines following the recently reported Singtel blunder with the latter. The incident spurred industry watchers to suggest the influencer community lacked proper guidelines. Gushcloud was fired after word got out that its bloggers were slamming Singtel’s competitors M1 and StarHub. M AY 201 5 | a dvert i s i ng + m a r ke t i ng 5

NEWS

Cerebos settles pitch Cerebos has appointed media agency UM for its media planning and buying for two years, with OMD as the incumbent. The media buying and planning duties are for the Singapore market. Meanwhile, UM has also previously handled the Cerebos Malaysia account. In Malaysia, the account, recently shifted to Starcom MediaVest Group Malaysia following a pitch. SMG’s remit includes strategic planning for all brands under Cerebos, across the analogue and digital platforms, as well as the social management for some brands.

Word of Mouth wins Boutique PR consultancy Word of Mouth (WOM) was appointed on a 12-month retainer by two of Singapore’s retail malls, VivoCity and Scotts Square. Both wins came following a pitch. Other recent wins have included natural and ethical beauty brand, The Body Shop, for a 12-month contract and books retailer, Times Bookstores, for a 10-month contract. The agency will be responsible for planning strategic and tactical media outreach campaigns. Firefly calls for media pitch Firefly, Malaysia’s short-haul premium airline has called for a media pitch. The pitch runs across markets such as Singapore, Malaysia, Indonesia and Thailand. Late last year Firefly introduced the launch of its new service operating between Ipoh and Johor Bahru. Meanwhile, the airline also signed a co-operation agreement with Citilink mid-last year to expand its regional reach. 6 a d verti s i ng + marketi ng | M AY 2015

Kindness begins The Singapore Kindness Movement (SKM) released a short film about kindness and intergenerational bonding called “Mud Doll”. Conceptualised by 3-Sixty Brand Communications, the two-minute spot premiered on channels 5 and 8 on 30 March 2015, while a 60-second version runs in selected cinemas island-wide. The full-length clip can be viewed on SKM’s YouTube channel, KindnessSG.

Hosting new duties C&C International, a manufacturer and distributor of branded beverages, awarded Host Singapore its creative mandate for Irish cider brand, Magners. The agency won the account following a pitch in February. Host will be conceptualising a 360 creative campaign for Magners in Singapore and Hong Kong. The first campaign will be launched in the coming months and will run across advertising, digital, retail and on-ground activations.

Regional ride Designer and manufacturer of two-wheeled motor vehicles Piaggio Asia Pacific appointed The Hoffman Agency as its public relations agency of record following a pitch. The agency was contracted for 12 months. The Hoffman team will lead the regional co-ordination for the Piaggio brands. The agency will support the company’s communications strategy as part of an integrated programme covering the organisation’s markets across Asia Pacific.

Inspiring Singaporean women Revlon Singapore appointed Mindshare, the global media agency network, part of GroupM and WPP, its media account after a closed pitch. The agency will be tasked “to help inspire and engage Singaporean women”. Revlon’s global brand portfolio includes Revlon colour cosmetics, Almay colour cosmetics, SinfulColors colour cosmetics, Pure Ice colour cosmetics, Revlon ColorSilk hair colour, Revlon beauty tools, Charlie fragrances, Mitchum anti-perspirant/ deodorants, and Ultima II and Gatineau®skincare. Investing in parents Singapore parenting magazine theAsianparent announced a multi-million dollar investment from Vertex Venture Holdings. The investment from Vertex brings the company’s total funding to SG$4.5 million. With a sustained growth in revenue throughout its five years of operation, theAsianparent offers marketers one of the most targeted and largest platforms for tapping the “mums” segment. TheAsianparent generates it revenue from custom advertising and market research.

Adding some heat British street food restaurant MEATliquor appointed HEAT Branding to lead its marketing and PR efforts. The company is making its international debut in Singapore. The appointment comes following a pitch in Singapore. The agency is contracted for a six-month period. HEAT Branding’s clientele includes 1-Altitude, LeVel33, Dining City Restaurant Week, World Gourmet Summit 2015, UNA at 1-Rochester, Lewin Terrace, Wildfire, Time Out Singapore and Esquire Singapore.

A tribute request Singapore Press Holdings sent out an email to marketers and agencies regarding the queries it was getting on tribute ads to Mr Lee Kuan Yew. In a letter penned by Leslie Fong, senior executive VP, marketing and digital divisions of SPH, the company said that at the request of the family, SPH would not accept all such advertisements.

Singtel saga Singtel terminated the services of social media agency Gushcloud and its employees who were involved in the marketing campaign that smeared its competitors StarHub and M1. In a statement released on its Facebook page, group CEO of Singtel, Chua Sock Koong, said: “We regret that a Singtel employee who worked on this campaign did not adhere to our professional standards and values.”

Understanding autism For its 10th anniversary, non-profit organisation St. Andrew’s Autism Centre partnered with Grey Group Singapore’s philanthropic arm, Grey for Good, to educate people about autism. The partnership was launched in April to coincide with World Autism Awareness in Singapore. This collaborative autism advocacy effort was shared among five partners. The organisation hopes to improve the public’s understanding and awareness of autism through its advocacy. WWW. MARK E TING-IN TE RAC TI VE . C OM

FUTURE-PROOF YOUR RESEARCH In an age where the only constant is change, Market Research must keep ahead of the game. As consumers adapt and work with an increasing array of digital platforms and technologies, the evolution of research techniques continues. So how should your organisation be approaching research in 2015? How can you ensure you not only have all the essential research tools but maximise your insights and build highly relevant consumer profiles? Donâ&#x20AC;&#x2122;t leave it to chance, hear the current trends on market research straight from the experts and get your questions answered in an innovative format at Research Asia Interactive on 12 June.

1 2 J U N E 20 1 5 | FO U R S E ASO NS HOTEL SINGA PORE|9.00A M-5.00P M THE SPEAKER LINEUP INCLUDES:

Ali Mirza CEO Affluential

Amrita Banta Managing director Agility Research & Strategy

Solomon Huang Head of Strategy and Insights APAC, EMEA Citi

Evan Williams Consumer insights director â&#x20AC;&#x201C; Asia, Middle East and Africa General Mills

Sakshi Prakash Senior analyst Lenovo

Priya Khanna Associate director, insights Pepsico Foods

REGISTER NOW AT: www.marketing-interactive.com/research-asia/sg For registration enquiries please contact: Czarina Solomon, +65 8112 6351, +65 6423 0329 czarinas@marketing-interactive.com For advertising and sponsorship please contact: Soren Beaulieu, +65 6423 0329 sorenb@marketing-interactive.com

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NEWS

Sweet delivery Krispy Kreme Philippines and Mobext launched the brand’s first foray into mobile – the Krispy Kreme app. This marked the company’s entry into m-commerce. The app allows users to order their Krispy Kreme favourites and have them delivered right to their doorstep or have them ready for pick up at their preferred branch. The pick-up and delivery functions are available in selected stores nationwide. Bite-size knowledge The Economist Group launched a new digital app, The Economist Global Business Review, focused on delivering insightful analysis on global trends in business, finance and technology. The bilingual Chinese-English app allows The Economist Group to reach a new set of global business leaders in markets such as Mainland China, Hong Kong, Taiwan, Malaysia and Singapore. The app is the first bilingual product featuring Economist content to be offered by the publication.

Saving the animals In partnership with the Humane Society of the United States, Hilton Worldwide has joined the fight against animal cruelty. All hotels in the Hilton Hotels & Resorts, Waldorf Astoria Hotels and Resorts, Conrad Hotels and Resorts, Canopy by Hilton and DoubleTree by Hilton brands, will adopt cage-free eggs and cratefree pork produce. 8 a d verti s i ng + marketi ng | M AY 2015

Stars join adidas campaign Adidas launched its “Uncontrol Yourself” campaign. This is to promote the new spring/summer 2015 Climachill product range. The campaign will include ATL, BTL, digital and PR activations across the globe. The campaign features international athletes such as football star Gareth Bale, tennis ace Simona Halep and basketball player Jeremy Lin. The campaign presents the evolution of Climachill from 2014 with the new and valiant black training shirt.

Lighting up Indian real estate and hospitality group K Raheja Corp tied up with Grey Group Singapore’s new philanthropic arm Grey for Good, and Grey’s rural communications arm RC&M, for a new campaign called “The Escalator Project”. The campaign is aimed at lighting up homes using 50 lamps supplied with rechargeable batteries, and was tested in Chandori village near Nashik, Maharashtra, India.

Media review Consumer product retailer SC Johnson is reviewing the global media buying duties of its two media agencies: Omnicom Group’s PHD and WPP’s Maxus. At present, PHD handles the company’s digital buying while Maxus is the lead media network on the account. The review is said to focus on regional capabilities and costs.

Healthy accessory Grey Group Singapore’s newly formed philanthropic arm Grey for Good launched a campaign looking to alleviate iodine deficiencies in women in rural India by swapping the bindi for an iodine patch. The “bindi” is worn by many Indian women on their forehead as a decorative. 3D test drive In partnership with digital marketing agency Isobar, Chevrolet launched CoDriver, a virtual reality platform to challenge the traditional car retail experience. With CoDriver, passengers take a seat in a specially fitted vehicle and are transported to a real-life environment to experience the vehicle’s capabilities. It was created for the launch of the Colorado High Country pickup truck.

A new partnership Content discovery platform Outbrain inked an exclusive multi-year global deal with ESPN to deliver sponsored content recommendations to its users. Through the contract, ESPN will be taking advantage of Outbrain’s real-time analytics and insights capabilities. Using Outbrain technology, recommended content will be presented to ESPN users as well as trending stories and branded content. The company will provide ESPN with predictive analytics tools to help improve engagement and performance.

HOW MUCH DOES THAT COST?

THE BEAUTY OF PERTH

The campaign shows a transformational day and night image of two destinations beyond Perth on Clear Channel bus and taxi shelters. To bring out both day and night visions of regional Perth, a special technique known as reverse printing was applied to the posters. Launched

on 19 March, the campaign runs for two months. About 20 central bus shelters were picked for these specially printed six-sheet posters. Each poster costs $160 and the total execution cost was $3,200. OMD Singapore was the media agency behind the campaign.

WWW. MARK E TING-IN TE RAC TI VE . C OM

NEWS

AUDIT WATCH

BARCODE MAGAZINE DEBUTS IN SINGAPORE New strategy Adidas unveiled its five-year plan to boost its brand desirability, with an increased focus on its e-commerce offering and marketing a major part of it. Adidas Group launched its latest business strategy, “creating the new”, a five-year strategy aimed at accelerating growth through increased brand desirability. The new business plan focuses on three major strategic choices: speed, cities and open source.

Going international Bloomberg Television partnered with Cignal TV to create Bloomberg Television Philippines. Bloomberg Television Philippines is scheduled to launch in 2015. The Philippines has become a key focus for US media groups after CNN went live in the market last month. Cignal TV is a subsidiary of multimedia conglomerate Media Quest Holdings, which in turn, is wholly owned by the country’s largest telco PLDT.

Merging tastes Kraft and Heinz are set to merge into one F&B entity and is set to take on the title of the fifth largest F&B company in the world, and will be named The Kraft Heinz Company. Kraft shareholders will own a 49% stake in the combined company, and current Heinz shareholders will own 51%. An estimated US$1.5 billion in annual cost savings are to be implemented by the end of 2017. WWW.M A R K ET I N G - I N T ER A C T I V E.C O M

Indochine Media Ventures (IMV) issued its first edition of Barcode Singapore in January this year, tailored to “curious co-ed” readers aged 20 to 28. The magazine has an initial print run of 30,000. It ran as a bimonthly for January-February and March-April. From May the magazine will be printed monthly. A spokesperson told Marketing there were no plans to run an audit on the magazine’s circulation as it is currently looking to establish its “foothold into the market first”. Barcode’s Singapore edition features conversations around fashion, dining, beauty and wellness, entertainment and travel. IMV president Michael von Schlippe said: “We are delighted to bring a quality lifestyle publication to Singapore. Barcode

Vocanic expansion Vocanic expanded its tech capabilities with the inauguration of its new offshore engineering office in Colombo, Sri Lanka. The facility will contribute in the areas of Vocanic’s state-of-theart cloud-based social customer care and customer relationship management platform, VSocial, and its application programme interface, VSocial-API, as well as custom-built campaigns. At present, Vocanic’s Sri Lankan office has full web, social and mobile engineering capabilities. New appointment Creative agency Cheil India appointed Vaarunya Bhalla as senior brand manager. He will help develop and strengthen the agency’s reputation in the market, working closely with group president Shiv Sethuraman to communicate the agency’s vision, values and achievements to key external and internal stakeholders. He will lead Cheil’s efforts to strengthen the agency’s brand position in the country.

is the companion of the individual where the intellectually curious and the socially aware meet. Our team of creative and imaginative individuals, backed by a pool of local contributors, will ensure a quality print for our readers.” Rachel Tan, the magazine’s editor-in-chief, said: “Barcode Singapore aims to be the best friend of the individual who curates their closet, for the wanderer who loves to travel, and for the creative mind who dares to daydream.” The lifestyle magazine retails at $3.90 and is available at all major bookstores, newsstands, cafés and airport lounges.

Following Apple Following news of Apple’s smartwatch, Swiss luxury watch brand TAG Heuer announced intentions to launch its own Android wear smartwatch later this year, along with Google and Intel. The announcement was made at watch and jewellery trade show Baselworld. The watch is slated to debut in October to December.

Starbucks’ campaign issues Starbucks launched a campaign called Race Together in the US to get communities to start an open dialogue about race with the brand. Starbucks’ senior vice-president of global communications, Corey duBrowa, decided to delete his Twitter account following a backlash over the campaign. (Read in detail on page 18.)

Programmatic partnership CNN, The Financial Times, Reuters and The Guardian, along with the Economist, will create a programmatic partnership called Pangaea Alliance allowing brands to reach their audience of 110 million users. This will allow brands to advertise using programmatic technology. The beta phase of the Pangaea Alliance will be managed by a central team which includes commercial leadership and operational resource from all the member publishers.

Supporting equality and diversity Anti-diversity and inclusion comments by iconic fashion duo and brand Dolce & Gabbana prompted a #boycottdolcegabbana online campaign, fronted by Sir Elton John. DigitasLBI joined in the protest, declaring its support for equality and diversity. The agency’s symbolic gesture comes in the form of “iitasLBI” – that is, by dropping off the letters “g” and “d” from its agency as well as personal names which prompted #dropDandG. New platform for Standard Chartered International banking group Standard Chartered launched a publishing platform called BeyondBorders. BeyondBorders aims to put the group at the front of the financial services publishing pack and reach out to a wider audience. With a multi-channel approach to content created by the group, the written blogs, videos, infographics and reports published on BeyondBorders can be accessed across social media, traditional news media and marketing channels. M AY 201 5 | a dvert i s i ng + m a r ke t i ng 9

COVER STORY

10 a d verti s i ng + marketi ng | M AY 2015

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COVER STORY

M AY 201 5 | a dvert i s i ng + m a r ke t i ng 1 1

COVER STORY

MALAYSIA PUSHES TO BECOME A ‘DIGITAL NATION’

Mobile,fixed services and basic broadband packages will cost significantly lower in Malaysia in a bid to get more people online, writes Rezwana Manjur.

Ahmad Shabery Cheek, Minister of Communications and Multimedia Commission in Putrajaya, recently said that Malaysia would be moving into a more connected digitally advanced era and become a digital nation. The minister explained the move was made to encourage consumers to get into “the digital mainstream” and “participate in the digital and internet economies”. The initiative will be across both mobile and fixed services, and basic broadband packages will cost significantly less. He added the price reduction worked out to be about 14% lower than current prices. “This is very encouraging for consumers and I thank the communications providers for coming up with these value-for-money packages,” he said. He added the MCMC and the ministry were also mindful of the quality of the services provided as the country moved towards a transaction-based economy and more people were transacting with government and businesses online. He said there must be consistent and sufficient investment in order to improve the quality of services. Meanwhile, major industry players have 12 a d verti s i ng + marketi ng | M AY 2015

also expressed their support for the initiative. For fixed services, Telekom Malaysia (TM) will soon be offering prices that are 57% lower than the current price at RM88 for the basic package. Zamzamzairani Mohd Isa, TM’s group chief executive officer, said the company applauded the government’s move to drive broadband adoption via more affordable broadband packages. He added the move was in line with the brand’s aspiration to “deliver an integrated digital lifestyle with an enhanced and seamless customer experience beyond technology, products and services and devices”. Celcom Axiata’s CEO Dato’ Sri Shazalli Ramly echoed his support for the minister to get the nation more connected. “We heed the minister’s call to reduce broadband service charges to encourage greater internet usage among the public. Celcom is committed towards championing the rakyat’s needs to gain access to the latest technology and ensuring that everyone is connected to affordable broadband and fast internet speeds,” he said. “As the world goes digital, it is critical for

every Malaysian to have equal opportunity to access the internet. We recognise the need for the right entry level plans to accelerate adoption among Malaysians from all walks of life. DiGi therefore supports the minister’s call for easier access to internet services, and is committed to fast-track delivery of our ‘internet for all’ promise which is rooted on the same principle of affordable access for broadband and mobile internet services.” Meanwhile, Maxis’ CEO Morten Lundal also added another dimension. He said that broadband was not just accessed through PC and postpaid smartphones, but also through prepaid solutions. U Mobile’s CEO Wong Heang Tuck also said that U Mobile sentiments were in line with the ministry’s and MCMC’s direction and this move would eventually benefit the nation in the long run. Starcom MediaVest Group’s SMG and Vivaki CEO, Ahmad El Hamawi, said this was a positive incentive to connect the disconnected and further grow the Malaysian digital nation. He added this could be part of a long-term government plan which had an eye on the future. “The low pricing strategy is only an anchor or a way to entice disconnected households with basic internet surfing needs to be part of this digital ecosystem rather than an ISPs (internet service providers) fight over market share,” he said. “I say that because of the marginal discount offered on the premium services versus the low speed data-capped package. “Thinking of the internet.org global initiative driven by Mark Zuckerberg which is now live in some SEA markets such as the Philippines and Indonesia, I can’t help but appreciate such a local move by telcos towards an internet nation.” He added that in the long-term consumers would value these services and make their entire experience less dependent on pricing only. WWW. MARK E TING-IN TE RAC TI VE . C OM

COVER STORY

TM BACKS INITIATIVE TO POSITION CYBERJAYA AS A GLOBAL TECH HUB Is this part of Malaysia’s goals to become a digital nation? Rezwana Manjur asks.

Plans are in place to push Cyberjaya as a global technology hub. This initiative is by Telekom Malaysia (TM) via its wholly owned subsidiary Intelsec, which provides consultancy, design, development and management of smart city services and Cyberview. Cyberview is a tech hub enabler that empowers the tech community through the delivery of industry development initiatives, investor relations services and management services. In a press release, the pair stated the collaboration would see TM and Cyberview working closely to transform Cyberjaya from a “premier ICT hub into a global technology hub”. This will be via the strengthening of telecommunication and ICT infrastructure in Cyberjaya. Following the collaboration, the pair hopes WWW.M A R K ET I N G - I N T ER A C T I V E.C O M

this will spur the creation of high technology oriented jobs in Cyberjaya and create an opportunity for Cyberjaya to position itself as the preferred global investment hub for technology companies. The collaboration was formalised via a memorandum of collaboration, which was signed by Massimo Migliuolo, chief executive officer of Intelsec, and Faris Yahaya, managing director of Cyberview. “This is definitely in line with TM’s aspiration of being the partner of choice for our customers’ end-to-end connectivity and ICT requirements. With TM’s telecommunication and ICT infrastructure as well as Intelsec’s expertise in delivering smart services, we are ecstatic on the extensive opportunities that will be made possible in Cyberjaya,” Migliuolo said. The inking of this collaborative agreement will see TM become the strategic

telecommunication partner in promoting smart city living in Cyberjaya. “The smart city services to be offered by Intelsec in Cyberjaya will be backed by TM’s robust and resilient network infrastructure in Malaysia with global connectivity and is part of TM’s strategic initiative towards becoming the innovation exchange hub for the country and the region,” he added. Leveraging on Intelsec’s smart service infrastructure, the collaboration will also explore strengthening and enhancing city wide public safety and security, thus increasing the quality of living in Cyberjaya. Meanwhile, Cyberview will bring together the various stakeholders in Cyberjaya, including municipals and local councils, to drive the objectives envisioned in this collaboration. “This collaboration will see both entities working together to support the national aspiration of establishing Cyberjaya as a global technology hub as well as augment the growth of high technology jobs. It also gives Cyberjaya the niche to establish itself as the main catalyst to drive Malaysia towards a high value knowledge-based economy,” Yahaya said. He explained the smart city framework would further strengthen Cyberjaya’s infrastructure to improve digital connectivity and coverage. This is very much in line with Malaysia’s ambitions to become a digital nation. Ahmad Shabery Cheek, Minister of Communications and Multimedia Commission in Putrajaya, recently said the nation was hoping to encourage consumers to get into “the digital mainstream” and “participate in the digital and internet economies”. He added the internet data price reduction plans worked out to be about 14% lower than current prices and aims to push consumers online. M AY 201 5 | a dvert i s i ng + m a r ke t i ng 1 3

NEWS ANALYSIS

CONTENT MALAYSIA PITCHING CENTRE LAUNCHED Looking to push for creativity in local content, a pitching centre has been launched. Rezwana Manjur reports.

Malaysia is making creativity and a push for local content creation its new ambition. Recently Communications and Multimedia Minister Datuk Seri Ahmad Shabery Cheek announced the opening of the Content Malaysia Pitching Centre. The centre’s objective, according to its website, is to match content creators to the right funding assistance, the right buyers and distribution channels. This is supported by workshop activities, masterclasses programmes, and creative community events that aim to help content creators grow and cultivate local talent. “We at The Content Malaysia Pitching Centre bring creative minded people together 14 a d verti s i ng + marketi ng | M AY 2015

to create real connections and increase productivity,” it said. “We facilitate content creators to spur the proliferation of all types of creative content, from three-minute videos for YouTube to million ringgit movie productions. We support talent development via masterclasses and training for business projects and people management skills.” According to reports on The Star, the centre has been created to “stimulate creative content in the country as Malaysia’s creative content market size is RM7 billion, but only 15% is local content”. Local creative talents can ask for financial support starting from RM100 in the areas of

film, TV, music, YouTube, gaming and others. The minister was also quoted in the article saying that in the past, those with creative ideas may have found themselves in a pickle in a bid to get funding for their projects. This centre, hence, will work to be a “onestop centre where representatives from four agencies are gathered under one roof” to allow for convenience. These four agencies under the pitching centre include the National Film Development Corporation Malaysia (FINAS), Malaysian Communications and Multimedia Commission (MCMC), Multimedia Development Corporation (MDeC) and Radio Televisyen Malaysia (RTM). WWW. MARK E TING-IN TE RAC TI VE . C OM

NEWS ANALYSIS

LOOK WHAT MALAYSIANS ARE CHECKING OUT ONLINE

See whatâ&#x20AC;&#x2122;s trending on Malaysiansâ&#x20AC;&#x2122; desktops, mobile devices and tablets.

The Malaysian Digital Association (MDA), the apex representative body for online publishers, advertising agencies and digital service providers in Malaysia, and comScore, a digital media analytics company, have released their monthly rankings of web activity for the top online entities in Malaysia for February 2015. The results are based on data from the comScore MMX and Mobile Metrix services. Top 30 local web entities visited from desktop computers in Malaysia Maybank2u.com.my, mudah.my, cimbclicks. com.my, airasia.com, malaysiakini.com and thestar.com.my held their respective top six spots in the top 30 local web entities in February 2015 compared with January 2015. Top 30 web properties visited from desktop computers in Malaysia Google sites, Facebook, Yahoo sites, Microsoft sites, Wikimedia Foundation sites and Maybank Group held their top six positions in the top 30 web properties in February 2015 compared with January 2015. Top 20 web properties visited from mobile devices in Malaysia In terms of engagement, mudah.my held its WWW.M A R K ET I N G - I N T ER A C T I V E.C O M

TOP 30 LOCAL WEB ENTITIES FROM DESKTOP COMPUTERS IN MALAYSIA February 2015 Total Malaysia - Age 6+, Home and Work Locations Entity

Unique Visitors (000)

DIGI.COM.MY

435

PAULTAN.ORG

420

TM.COM.MY

401

ASTROAWANI.COM

396

KINITV.COM

393

TOP 30 WEB PROPERTIES FROM DESKTOP COMPUTERS IN MALAYSIA February 2015 Total Malaysia - Age 6+, Home and Work Locations 26

Property

Unique Visitors (000)

Malaysiakini Sites

1,348

CBS Interactive

1,324

Alibaba.com Corporation

1,290

Ziff Davis Tech

1,155

Malaysia Airlines

1,060

Source: comScore MMX

top position on smartphones with 181,535,000 pages viewed, followed by Media Prima Group with 34,503,000 and Malaysiakini sites with 27,764,000. Media Prima Group was ranked as the number one web property in February 2015

with 2,019,000 unique visitors, followed by Astro Group with 2,009,000 and Group Digital Karangkraf with 1,563,000. New to the chart compared with January 2015 was Rev Asia at No.16 with 687,000 unique visitors. M AY 201 5 | a dvert i s i ng + m a r ke t i ng 1 5

OCBC BANK AND DBS IN A SPAT OVER SOCIAL MEDIA SUCCESS

But are fans and followers the best gauge of social media success? Rezwana Manjur asks.

OCBC Bank’s claim it’s the leading “social media” bank in Singapore has sparked retaliation from arch-rival DBS. In a media release, OCBC said it had more than 578,000 fans on Facebook, 9,900 followers on Twitter and 21,000 followers on LinkedIn. OCBC Bank claimed to have developed the “largest Twitter following among local banks” since its Twitter account was created on 17 June 2011. It added its Facebook page was started on 12 September 2012. Quoting Socialbakers, OCBC Bank said its corporate Facebook page grew by 40% in 2014 alone, with interaction peaking in August during the promotion of the Juventus versus Singapore football match. But social media experts have advised against looking at the number of followers or fans as a measure of success. Don Anderson, managing director of We Are Social, said the discussion should be bigger than the numbers mentioned – it needed to be about purpose. “Corporations ideally need to avoid attaching themselves to vanity metrics such as likes and followers,” Anderson said. “At the end of the day, these metrics are largely meaningless. While response times to customer enquiries are critical to brand reputation, it’s the quality of the engagements and interactions with consumers that count 1 6 M A R K ET I N G MAY 2 0 1 5

most and add value to the organisation.” Anderson added that brands, particularly those in the financial services sector, were still struggling with treating social media largely as a customer service platform. “That’s not a complete relationship. While OCBC, DBS and UOB are making progress in this area in adopting more conversational approaches through content that is relevant to their customers, and not just about themselves, they still have a long way to go to truly comprehend the opportunity that social media provides. “Are banks really listening to their customers or just simply reacting? In many cases it’s the latter, and that doesn’t necessarily lead to a long-term relationship, loyalty or ‘brand love’.” In an earlier interview on the limitations of social media data with Marketing, Christopher Wong, CEO of Klarity, talked about how Hong Kong brands use this as a measure of campaign effectiveness, then went on to critique this measurement. “In my opinion, that is a very superficial way of looking at things. Having fans does not necessarily equate to true brand enhancement or real leads,” Wong said. Comments and shares are much more powerful because they show affiliation to your brand, but they are limited to very active fans – it is possible to have engaged less active fans

who do not leave a comment or share your post, he added. Wong also said the path-to-purchase is often an indirect process and customers may have to be channelled through well-known sales and marketing funnels, therefore a careful analysis of how social media adds to a brand is needed. (Read also: 6 limitations of social media data). In reaction to OCBC’s claims, Edna Koh, senior vice-president of group strategic marketing and communications for DBS Bank, has refuted the claims and told Marketing that in 2010 DBS was the first Asian bank in Singapore to adopt a regional corporate Facebook page which now has more than 590,000 fans across its 12 Facebook pages established for different audiences. She added that over the past few years, DBS had adopted a multi-channel approach across the region and the bank also had more than 36,000 fans on Twitter and 100,000 followers on LinkedIn. Also quoting Socialbakers, Koh said DBS had an average response rate of 100% in August 2014 and an average of about 95% on Facebook for 2014. “It is important for us to keep pace with the latest technology and be part of our customers’ social network,” she said. “We have also enjoyed success engaging our customers with YouTube videos. For instance, the recent “8 types of friends you’ll meet at Lohei” video created for Lunar New Year garnered over 280,000 views on YouTube alone. The post on Facebook had close to 370,000 views, likes and shares.” When contacted by Marketing, OCBC said the release was focused on its corporate social media channels such as OCBC Bank’s Facebook page and did not factor in product and event channels such as FRANKbyocbc and the OCBC Cycle Facebook page. “In this instance, combining the two would mean we have a Facebook following of more than 600,000 fans. In addition, the media release focused on our Singapore-centric social media channels, as opposed to regional channels,” it said. WWW. MARK E TING-IN TE RAC TI VE . C OM

NEWS ANALYSIS

THE TOUGHEST QUESTION MARKETING FACES: SO, WHAT?

How can marketing overcome the biggest challenge of moving the needle for the business? MasterCard’s CMO Raja Rajamannar tells Rayana Pandey.

marketing initiative in recent years. He said it had moved the needle for the business. “The brand scores have gone up. We use the BrandAsset Valuator which measures brand energy and brand differentiation – and both moved up, including NPS, yielding incremental business results.” MasterCard now looks at Priceless Surprises more as a marketing platform than an advertising campaign. It has identified nine passion points for its customers and offers them experiences in the form of surprises across those passion points which range from music to different sports. From this has also stemmed its latest initiatives such as Priceless Causes. MasterCard is also in the process of rolling out its newly launched digital and social media engine in markets outside of Asia. If a typical conversation between marketing and business was to be “Facebook-ed”, here’s what it might look like: Marketing: Our brand awareness post this campaign is significantly higher than last year! *celebrates* #wediditagain #weareawesome Business: Great. So? #notagain #sowhat #showmethemoney #youjustdon’tgetit Marketing: So?!!?? … #whycantyouseewhatI’mtryingtodo #youjustdon’tgetmarketing And so on and so forth. As marketers, surely you would know how the rest of the conversation would go like. We have heard from many marketers that the future success of marketing and marketers depends on how keen is their understanding of the business and how marketing can turn into a profit centre from being a cost centre. In a conversation with Raja Rajamannar, chief marketing officer at MasterCard, he reiterated the same. For marketing to survive in the world of WWW.M A R K ET I N G - I N T ER A C T I V E.C O M

business, it needs to speak the language of the business. “Marketing is no longer about softer KPIs. Brands have started putting emphasis on financial KPIs,” he said. In no way are softer KPIs, such as brand awareness, brand perception, overall opinion, NPS and others immaterial, but they need to be funnelled in a way that shows the link between them and business results. “Marketers get excited about these softer KPIs, but if a marketing guy comes to me and says my awareness has gone up, I’d say that’s great, but what does it do to the company’s bottom line?” he said. The “so what?” is absolutely critical. According to Rajamannar, in the past 12 months MasterCard has brought in the discipline and methodologies to connect marketing KPIs to business KPIs. “We are creating funnels to understand if our brand awareness goes up by a certain measure, what is going to happen to the bottom-line,” he said. For MasterCard, its Priceless Surprises platform has been the most successful

From pure play marketing to business: A mind-shift While in theory it makes a lot of sense for marketing to be business oriented, what does it take a brand to truly implement this on the ground? Training and hiring the right talent, says Rajamannar. At MasterCard, from time to time, every regional head sits in a financial 101 directly with the CFO. “Our CFO educates them on how to look at financials and understand them,” he said. Other than that, MasterCard also uses third-party companies to carry out objective assessments through methodologies and a framework that eliminates bias. “If a marketing campaign will be evaluated only by the marketing team, results, of course, will be biased. Instead we get these thirdparties to look at how we link marketing results to the company’s bottom line. “We have made significant investments to get this attribution model right and we are far ahead of the game than most companies in that aspect.” M AY 201 5 | a dvert i s i ng + m a r ke t i ng 1 7

NEWS ANALYSIS

WHY ASIA-BASED SENIOR EXECUTIVES ARE MORE LIKELY TO QUIT

Low decision making influence over global HQ and higher scepticism of global leaders are among other causes. Rezwana Manjur reports. PAY, LEADERSHIP BRAND, AND RECOGNITION VALUED MORE BY LEADERS IN ASIA Top 10 EVP Drivers of Attraction for Leaders in Asia Percentage of Leaders Selecting a Driver Among the Top Five Factors influencing Selection of a potential Employer attributes that significantly vary for Leaders in Asia ( relative to leaders in the Rest of the World1) Rank

Rest of the World2 Leaders

Leaders in Asia

Leaders in China

Leaders in Hong Kong

Leaders in India

Leaders in Singapore

Compensation (44%)

Compensation (50%)

Compensation (48%)

Compensation (54%)

Compensation (47%)

Compensation (53%)

Ethics-Integrity (35%)

Respect (34%)

Respect (39%)

Respect (35%)

Ethics-Integrity (45%)

Empowerment (37%)

Respect (34%)

Empowerment (34%)

Future Career Opportunity (31%)

Senior Leadership Reputation (29%)

Empowerment (38%)

People Management (33%)

Empowerment (32%)

Senior Leadership Reputation (33%)

Empowerment (30%)

Recognition (27%)

Respect (38%)

Respect (30%)

Development Opportunity (27%)

Ethics-Integrity (31%)

Market position (29%)

Development Opportunity (27%)

Senior Leadership Reputation (37%)

Senior Leadership Reputation (30%)

Future Career Opportunity (26%)

Recognition (29%)

Senior Leadership Reputation (28%)

Ethics-Integrity (27%)

Future Career Opportunity (32%)

Ethics-Integrity (28%)

Market Position (24%)

Future Career Opportunity (26%)

Recognition (28%)

Empowerment (25%)

Recognition (27%)

Development Opportunity (23%)

Senior Leadership Reputation (24%)

Market position (25%)

Development Opportunity (25%)

Future Career Opportunity (24%)

Growth Rate (22%)

Future Career Opportunity (22%)

Location (22%)

Development Opportunity (22%)

Location (21%)

Market position (23%)

Stability (20%)

Recognition (21%)

People Management (20%)

People Management (22%)

Growth Rate (21%)

Location (23%)

Market position (20%)

Market position (21%)

n = 105 (rest of the world); 771 (Asia); 233 (China); 171 (Hong Kong); 183 (India); 132 (Singapore). 1 Plus or minus five percentage points difference from the average for leaders in the rest of the world. 2 Rest of the world includes responses from Australia, New Zealand, Europe, Middle East, Africa, and North and South America. Source: CEB Global Labour Market Survey Q3 2012; CEB and Russell Reynolds Associates, Asia Leadership Survey,2012.

A study of senior-level executives based in Asia has found that leaders in the region show higher turnover rates compared with other regions. Asian leaders are also considerably more receptive to recruiters from other organisations, said a survey by CEB and Russell Reynolds Associates. One reason for this is because of the tensions between headquarters and the regional leaders, which is a leading cause of dissatisfaction and intent to leave among Asianbased executives in many WMNCs. The research, which studied more than 1,000 Asia-based CEOs and other executives, found the high turnover rate is contributed by 18 a d verti s i ng + marketi ng | M AY 2015

factors such as lack of confidence among local leaders that global headquarters understands their regions, and values their opinions. “Although the long familiarity Indian executives have with Western multinationals seems to give them a relatively favourable view of headquarters, their counterparts in China, Hong Kong and Singapore feel that corporate bosses aren’t listening to them,” the study said. This is a concern regularly aired by regional marketers. In an earlier article by Marketing, one issue highlighted was influence without authority, where in most companies a regional role has little authority to influence decisionmaking.

Sandeep Khanna, who formerly held regional marketing roles at LG and Nokia, said the survey results were a little surprising. “In my experience, there was always a universal understanding and appreciation that China and India needed to be treated in a special way in Asia. Assuming the results of the survey are representative, the fundamental issue is around trust,” Khanna told Marketing. One reason, said Khanna, could be a lack of exposure. Only when both the global and regional leaders have been in the saddle long enough, does trust develop. Another reason can be a lack of visible success if the category and the businesses are relatively new to Asia. WWW. MARK E TING-IN TE RAC TI VE . C OM

NEWS ANALYSIS

Managing the industry and Asia’s high turnover From the point of view of managing turnover, it is important for marketing leaders to help employees re-evaluate their goals for the year ahead, and think long-term about their needs, so staff members do not find themselves in the same position further down the track. She added that often where agencies and marketing leaders fall short is on retention strategies. In such a situation, it is incredibly easy (and common) for leaders to refuse responsibility for staff leaving, instead blaming the employee, the recruiter or accepting high turnover as an industry trend norm. “If your staff is leaving by the dozen, you WWW.M A R K ET I N G - I N T ER A C T I V E.C O M

Receptivity to working in a Different Function by function Percentage of Leaders Who “Agree” or “strongly Agree” 57% 48%

47% 39%

35%

33%

28%

26%

24%

22%

A REVOLVING DOOR: HIGHER LEADER CHURN AND GREATER RECEPTIVITY TO RECRUITERS IN ASIA Percentage of Leaders Receptive and Recruiters2 from other Organisations

41%

38%

44%

41%

37%

Asia Rest of (n - 771) the World (n - 105) Intent to Stay

Sales (Business to Business and Business to consumer

Information Technology systems

Human Resources

Finance and Accounting

AND CAREER GROWTH EVP Drivers of Attraction: Differences Between Local and Expatriate Leaders in Asia Difference in percentage of Leaders Selecting a Driver Among the Top Five Factors influencing Selection of a Potential Employer

More Important for Expatriate Leaders in Asia

More Important for Local Leaders in Asia 9%

Future Career Opportunity Respect

6% 2%

34% Compensation

25%

15%

Customer-Facing Roles

Recognition India

Singapore

46%

Hong Kong

Percentage of Leaders with High Intent to Stay’

Marketing and Market Research

Manufacturing and Supply Chain Roles

Corporate Strategy, Legal Real Estate

General Management

administrative Support

Operations

Research and Development

Procurement

Supply Chain Logistics

Manufacturing

15%

Communications

50%

Mainland China

More leadership in Asia is needed Priya Bala, regional director at font, added that historically, many multi-nationals have aimed to replicate their success across Western borders in Asia by sending leadership to Asian markets. But cultural nuances and the changing business landscape means it can take several years for them to fully understand the market. In the marketing industry, measures need to be set in place to grow a solid leadership bench that nurtures local talent. Asia is no longer just a region for localisation of global products and content – each market has its unique nuances and opportunities for growth. Corporate HQ leaders, therefore, must seriously consider building strategies that include Asia leaders’ market-specific considerations, rather than simply pushing global approaches from Western HQs. “You need to develop an approach specific for that region, which will often be completely separate from their Western approach,” Bala said.

WILLINGNESS TO SWITCH FUNCTIONS ESPECIALLY STRONG IN SUPPLY CHAIN LEADERS (AND WEAK IN SALES AND COMMUNICATION EXECUTIVES)

Quality Control and Assurance

“Nothing succeeds like success and that is true in the corporate world more than anywhere else. If the Asian business has not yet delivered profits and is still in investment mode, the HQ leaders are always circumspect and would like to replicate the ‘Western way’ of working. In many industries, Asia will have a longer gestation and that is something the West does not understand that readily.” In everyday behaviour, this can create problems and sometimes leaders in the West are not sensitive enough to understand the nuances that underlie behaviour. But this understanding is a two-way street. Asian leaders also at times fail to understand the Western DNA and do not make the muchneeded added effort. “As a result both operate from their cultural positions and there is not enough meeting of the minds.”

Asia Rest of (n - 771) the World (n - 105) Receptivity to Recruiters

Percentage of Leaders with high intent to stay current organisation over the next 12 month Percentage of Leaders who “ Agree” to responding to recruiters from others organisation

Industry Desirability

People Management

Job Impact

Market Position

Location

n=271 (expatriates); 427 (Local Leaders)

Source: CEB Global Labour Market Survey Q3 2012; CEB and Russell Reynolds Associates, Asia Leadership Survey,2012.

need to take stock of what’s going on internally, and whether your current processes – such as taking a global approach to local growth – are working,” Bala said. “In the end, employees leave because they feel they are just not being heard. Marketing leaders need to look into more effective engagement measures for their staff’s welfare and happiness.” Greg Paull, principal consultant of R3, added the talent squeeze would happen in Asia as much as anywhere else because the demand was so high. “For a start, there’s an oversupply of agencies. Meantime, there are more startups in ad tech in Asia than elsewhere in the world and the quality of talent is so variable – ranging from outstanding to average. These dynamics are driving high turnover rates and a short-term mindset.” However, he is optimistic the trend will shift. “We need to reach the happy medium of a job for life with a job for a year, the current mindset in China and other places,” he said. The study also showed that compared with expatriate counterparts in Asia, local leaders

place a greater emphasis on recognition and future career opportunity. Meanwhile, expatriates also place relatively greater value on a potential employer’s location and market position. The study also showed the willingness to switch functions especially strong in supply chain leaders and weak in sales and communication executives (15%). Marketing and market research sit somewhere in the middle with 24% willing to change. Creating a better cohesion between East and West Khanna suggests what could help the situation is to have more companies have more of their Asian counterparts in the board rooms globally. Global leaders should personally hold roles in Asia as exposure to local markets will make them more sensitive to the cultural nuances. “Diversity will surely help bridge the trust gap and culture. At the end of the day, it’s invisible and needs to be experienced at a visceral level. Everyone gets it theoretically, but there’s nothing like a dose of reality,” he added. M AY 201 5 | a dvert i s i ng + m a r ke t i ng 1 9

NEWS ANALYSIS

AGENCIES FALL BEHIND WHEN IT COMES TO INNOVATION

Will the traditional agency model last long? Rezwana Manjur asks. With innovation fast becoming a buzzword for marketers, many are noticing this is seldom driven by agencies. This sentiment was seconded by Jonathan Oliver (pictured), global head of innovation at Microsoft Advertising. “I truly do not think the traditional agency model will be around in the next two years. The rate of change gets faster every day and the next two years will be hyper fast. Agencies need to evolve to become consultants,” said Oliver in a conversation with Marketing. He added that traditional agencies are fast becoming disintermediated and brands are coming directly to companies such as Microsoft as they see these companies as providers of tech and innovation. Oliver said that while many agencies were today trying to evolve, this was still a struggle. However, Publicis buying Sapient does mark a good start for the advertising industry. “Agencies are in an interesting predicament because they have to move as fast as culture is moving and constantly changing. There’s a lot of risk on the agencies’ part – they are always playing catch up, but at the same time they have a client to convince. And if it goes wrong they get fired and clients find someone new.” A fear of failure and high expenses Innovation is proving just as difficult on the client side as well. Innovation, said Oliver, has to be wrong to be right. If it’s true innovation, it has to be something that has not been done before. “However, brands do not really want radical innovation because it is very expensive and has a high failure rate.” He added that while brands wanted media firsts, the problem was they don’t usually define what kind of innovation they want and the level of risk and marketing spend they were willing to fork out. A good way to understanding innovation – which is still difficult to define – is that innovation should help communicate the product at hand 2 0 a d verti s i ng + marketi ng | M AY 2015

and it should be embedded throughout the company culture. A practical breakdown of spend in the marketing budget for a company dabbling in the innovation pool should be 70% on traditional, 20% on new, but tested technology and 10% on true new innovative products. “The measurement of success is how quickly you funnel in money to make that 10% a 20% then turn that into a 70% – that’s key,” Oliver said. Is data to be blamed for a lack of innovation? “When you have too many choices, it usually leads to a choice paralysis – that is where we are with data.” He added that while data was vital, we should not lean on it too much. While companies can refine and understand data patterns, there is still a “handbrake on innovation as marketers are too scared to make decisions based on all the data they have”. On the opposite end of the spectrum, however, when there is not enough information, innovation is also equally difficult. Furthermore, because of the availability of data today, there is a rise in a number of

decision-makers thinking that failure rates in innovation should be lower as data leads to a clearer understanding of customer behaviour patterns. But the truth is, said Oliver, it doesn’t. This is primarily because data is always looking backwards rather than forward. True customer insight is not in the data, but rather in the gaps in the customer journey and experiences. “If companies looked backwards with the data at hand we wouldn’t have the iPhone or CNN channels and many other products. Data would have told them not to do indulge in these product innovations. If you look at data too much you can’t really see the real insights.” However, data alone cannot be blamed for a lack of marketing innovation. In Asia, culture plays a big part in the lack of marketing innovation, said Oliver. Historically, in many Asian cultures, failure is not welcomed. “The US is leading in innovation and pulling ahead of many markets because in the US failing is seen as a badge of honour. In Asia it isn’t looked at positively or harboured.” To truly successfully innovate, marketers must be ready to fail, said Oliver. WWW. MARK E TING-IN TE RAC TI VE . C OM

NEWS ANALYSIS

SALES AND MARKETING CANDIDATES MOST SOUGHT AFTER IN 2015

Source: JobStreet.com

Among the job applicant pool, candidates in sales and marketing are the most sought after in 2015, followed by those with expertise in human resources and engineering, a recent study by JobStreet.com revealed. This is despite a conservative outlook on the job market in 2015, with 82% of candidates surveyed expressing conservative expectations. However, a majority (80%) are still considering switching jobs over the course of the year. With regards to salary expectations, candidates who anticipated bigger salary growth (58%) attributed the main reason to having fulfilled management’s expectations in terms of their work, while candidates who expected lesser salary growth believed the main reason to be lower business profits. WWW.M A R K ET I N G - I N T ER A C T I V E.C O M

However, most Singaporeans’ employment and salary expectations are aligned with that of employers, with 86% of employers expected to offer a salary increment to their employees. The study also revealed candidates in managerial roles take a more ambitious approach towards job search, as compared with executives. For executives, salary is the main catalyst for a job switch. Managers, on the other hand, look for job opportunities that provide greater autonomy in decision-making and respond only to compelling offers. According to Jobstreet.com, employers who took part in the survey revealed the primary reason for hiring in 2015 would be to replace for staff attrition rather than expansion. Due to the tight employment market in

Singapore, 89% of employers expect bonus growth to either decrease or be maintained, since bonuses are no longer a major pull in retaining employees, citing other reasons for an employee’s departure from a company. One employer said: “The average turnover rate of a candidate is between two and three years. Candidates tend to leave for perceived ‘greener pastures’ after this duration, believing there is better out there and some are even looking at venturing into something new.” A total of 311 Singaporean employees and 100 employers took part in this survey by JobStreet.com in December 2014. M AY 201 5 | a dvert i s i ng + m a r ke t i ng 2 1

NEWS ANALYSIS

WHY STARBUCKS’ BOSS FELL SILENT ON TWITTER

What happened when Starbucks launched its Race Together campaign in the US? Rezwana Manjur writes.

Starbucks recently launched a campaign called Race Together in the US to get communities to start an open dialogue about race with the brand. The Seattle-based coffee company instructed its baristas to write “Race Together” on the side of customers’ cups in an effort to engage them to discuss race. However, the effort was not entirely well received by the public. Comments on social media sites revealed anger and scepticism towards the campaign, with online users accusing the coffee brand of being opportunistic and capitalising on such a controversial issue. Following the backlash, Starbucks’ senior vice-president of global communications, Corey duBrowa, decided to delete his Twitter account. He later wrote an opinion piece on Medium explaining he blocked a handful of Twitter users because of “the hostile nature” of their comments and deleted his account. He said on the post: “Twitter has proven to be a valuable tool for me to interact with my professional community, with media, on behalf of Starbucks, as well as on behalf of me. But I felt personally attacked in a cascade of negativity. I got overwhelmed by the volume and tenor of the discussion and I reacted. Most of all, I was concerned about becoming a distraction from the respectful conversation around Race Together that we have been trying to create.” However, as a PR person, did it serve him and the Starbucks brand any good by deleting his account? “Blocking users and deleting your account is quite unbecoming of someone representing a brand that just launched a bold initiative. People 2 2 a d verti s i ng + marketi ng | M AY 2015

would be quick to assume that duBrowa himself didn’t believe in the cause,” said Preetham Venkky, head of digital strategy and business at KRDS Singapore. He added that if he was trolled, he could have simply not engaged. For valid tweets, it was more important for him to stay, engage and participate in the conversation. “On social media, it’s better to have

your brutal honest viewpoint as opposed to remaining silent, or even worse, running away. It needs to be a conversation, not elocution,” Venkky said. So was Starbucks right to take on the race issue? Since the online backlash, Starbucks released a statement saying the company knew the campaign and issue would not be an easy one to tackle, but the company felt the issue “is worth the discomfort”. “It’s a gross generalisation, but I would never recommend consumer brands to tackle grassroots issues. People feel offended, since they usually smell the motive of profit behind such initiatives,” Venkky said. However, he added that in the case of Starbucks, the issue was different since the brand had always been an integral part of the community wherever they were located. “It’s never easy to discuss such complex issues, such as race, either at work or at home, so it’s important for communities to come together at a neutral place. Starbucks’ locations can serve to be that neutral place.” He added that in the case of Starbucks, when users stopped trolling the campaign, consumers might see an honest initiative gain momentum. Lars Voedisch, founder of PRecious Communications, also seconded Venkky’s comments saying that while duBrowa’s reaction “was unfortunate”, the company did successfully steer a conversation on race. “Starbucks knew that tackling race is a sensitive issue and most companies would have moved away from this – or any other emotionally loaded topic. So I applaud Starbucks and their CEO to go out there and have this conversation, fully being aware there will be sorts of backlash,” Voedisch said. He added that it showed the brand genuinely wanted to get involved in society and community issues. “There are thousands of brands that claim they are getting involved in the communities they are in – but which company actually goes beyond some safe CSR programmes or supporting generally accepted charities? We need more companies out there that take a stand and go where it might hurt.” WWW. MARK E TING-IN TE RAC TI VE . C OM

CALLING ALL MEDIA OWNERS! ITâ&#x20AC;&#x2122;S YOUR TIME TO SHINE

The Spark Awards is back in 2015 to recognise the top performances, solutions and campaigns by media owners and publishers from across South Asia, Southeast Asia and ANZ. The only awards programme of its kind in these regions and with 26 categories open for entry take this opportunity to shine bright and be recognised as a trusted partner among agencies and clients.

To enter and for more information visit: www.marketing-interactive.com/spark-awards/sea Submission Deadline: 15 June 2015 Gala Ceremony: 27 August, Singapore Marriott Hotel Contacts: Entry submissions and table bookings: CARLO RESTON +65 6423 0329, +65 9727 0291, carlor@marketing-interactive.com Sponsorship opportunities: SOREN BEAULIEU +65 6423 0329, sorenb@marketing-interactive.com

NEWS ANALYSIS

REAL PRODUCTS WHICH SCORED ON APRIL FOOLS’ DAY MARKETING Yes, these were actual products, Noreen Ismail writes. While each year sees tons of new fake products “launched” on April Fools’ Day, here are some brands that actually debuted or marketed real ones around the prank season. Amazon is one clever brand to do this. A day before April Fools’ Day, the e-commerce retailer debuted Dash – a physical button that lets its customers order items with a push of a button. Amazon’s one-click feature takes a realform of a small plastic hardware that you can stick on walls for on-the-go shopping. Shoppers can order for more products whenever they need them. Run out of coffee? Press the coffee button. Is your favourite detergent running out? Just hit the detergent button. Any time you need more diapers, shampoo, toothpaste or what-haveyou and you find yourself too lazy to run to the store, the dash button takes care of that and ships your necessity with a push of a button. Amazon banked so much on the product’s “wow” factor that it was confused with a prank. The product was so unheard of that netizens started to question if it was a legitimate product or just another prank from the Seattlebased e-commerce giant. The confusion was widespread, particularly on Twitterverse: The launch of the product around April Fools’ Day appeared to have been marketed and timed perfectly – when consumers are more likely to check out innovative products. Spurring online buzz, albeit unintentionally or otherwise, the product gained some serious online traction. The online debate surrounding the product suggests that it’s either an incredulous or ingenious product – as Will Smith aptly chimed in: Another brand eager to pick up traction on April Fools’ was MINI Cooper that launched a game on its Facebook site to market its MINI 5 – a five- door MINI launched last year. Irene Nikkein, marketing manager of BMW Asia, said: “We want to tell consumers about the extra doors, but in a more engaging 2 4 a d verti s i ng + marketi ng | M AY 2015

“I keep waiting for someone to tell me that Amazon’s new dash buttons are an April Fools’ joke. http://t.co/ lHUM4bevjM @CNET.” – Jessica Dolcourt (@jdolcourt) April 1, 2015

“Amazon dash was by far the best April Fools’ this year.” — joshua schachter (@joshu) April 2, 2015

“I think the Amazon Dash is both idiotic and brilliant.” — Will Smith (@willsmith) April 1, 2015

manner. So we thought up MINI DOOR-RE-MI. In this game, we used the doors of the MINI 5 Door to test your memory. MINI DOOR-REMI was launched just before April Fools’ Day, a time when consumers are on the lookout for tricks and pranks and are, hence, more likely to click on interesting posts!” Rod Strother, director of digital and social centre of excellence for Lenovo Singapore, highlighted that marketing content on April Fools’ day should be about adding value for the consumers. “In cases such as this, adding value could

be something as simple as putting a smile on our communities’ faces. Obviously any piece that we put out still has to feel like it’s coming from the brand regardless of the timing of the piece – in fact, if it’s for April it’s probably essential it looks like it’s coming from the brand. Otherwise no one is going to be fooled.” Strother also cautioned marketers who may have a wrong agenda in promoting their products on April Fools’ Day. “I don’t know about using this day specifically as one to release product communication. If you’re using the rationale that people will click through to read it, then you have to assume that they are in a specific frame of mind when they do that. “If you are not playing along with the theme of the day then it’s going to feel out of context. Tricky task though if you’re trying to get the product message over at the same time as pulling a stunt. Get it wrong and it’s got great potential to backfire.” However, BMW did it again – successfully – when it marketed its brand new BMW 1 Series right on April Fools’ day. The marketing stunt came in the form of a generous giveaway from the car brand. NZ Herald printed a seemingly bogus ad on the front page, inviting people to swap their car at the Newmarket for a brand new BMW 1 Series. The first person to do so, the ad claimed, would be rewarded with the new car. Nina Englert, managing director of BMW Group New Zealand, said: “BMW has been New Zealand’s most popular premium automotive brand for the past three years in a row, and today’s reverse joke is evidence that people are willing to throw caution to the wind in the quest for a new BMW – even on April 1.” The BMW prize featured the personalised number plates NOF00L plus a five-year warranty. The video of the surprise giveaway has had more than one million views on YouTube. WWW. MARK E TING-IN TE RAC TI VE . C OM

Advertising + Marketingâ&#x20AC;&#x2122;s MasterClass series is an ongoing programme of specialised workshops covering wide-ranging topics relevant to present-day marketing communications disciplines. One day in length and customised to fit the needs of marketers from various functions, each MasterClass course will enrich you with skills and tools to bring your competencies to a higher level.

Check out all upcoming courses here: WWW.MARKETING-INTERACTIVE.COM/MASTERCLASS-SERIES/MY

COMING UP Content generation and copywriting for social media Date: 5 June Explosive storytelling skills for the new economy Date: 10 June Developing social media intelligence Date: 23 June Returns on social media marketing investments Date: 24 June Under the Human Resources Development Fund (HRDF), registered employers can claim rebates for trainings conducted by an overseas trainer/ training provider. Contact Joven Barcenas, jovenb@marketing-interactive.com, +65 6423 0329 for further information on agenda and registration.

NEWS ANALYSIS

KRAFT-HEINZ MERGER: A NEW BRAND POWERHOUSE? Industry watchers fear it may mean trouble for agencies if the firm focuses on cost-cutting. Rezwana Manjur reports.

Kraft and Heinz will be merging into one giant F&B entity and is set to take on the title of the fifth largest F&B company in the world. The combined entity is to be named The Kraft Heinz Company. Kraft shareholders will own a 49% stake in the combined company, and current Heinz shareholders will own 51%. 2 6 a d verti s i ng + marketi ng | M AY 2015

According to a press statement, the joint entity will have revenues of about US$28 billion, with eight US$1 billion-plus brands and five brands between US$500 million to US$1 billion. Following the merger, there is also an estimated US$1.5 billion in annual cost savings that are to be implemented by the end of 2017.

Alex Behring, chairman of Heinz and the managing partner at investment firm 3G Capital, said bringing together these two iconic companies would create a strong platform for both US and international growth. â&#x20AC;&#x153;Our combined brands and businesses mean increased scale and relevance both in the US and internationally. We have the WWW. MARK E TING-IN TE RAC TI VE . C OM

NEWS ANALYSIS

utmost respect for the Kraft business and its employees, and greatly look forward to working together as we integrate the two companies,” Behring said. Behring will now be taking on the role of chairman of The Kraft Heinz Compa Meanwhile, John Cahill, Kraft chairman and chief executive officer, will become vice-chairman and chair of a newly formed operations and strategy committee of the board of directors. “Together the company will have some of the most respected, recognised and storied brands in the global food industry,” he said. He added the combination offered significant cash value to shareholders and gives them the opportunity to be investors in a company very well positioned for growth, especially outside the United States, as it brought Kraft’s iconic brands to international markets. Bernardo Hees, chief executive officer of Heinz, will be appointed chief executive officer of The Kraft Heinz Company. The board of directors of the combined company will consist of five members appointed by the current Kraft board, as well as the current Heinz board, including three members from Berkshire Hathaway and three members from 3G Capital. Warren Buffett, chairman and CEO of Berkshire Hathaway said: “I am delighted to play a part in bringing these two winning companies and their iconic brands together. This is my kind of transaction, uniting two world-class organisations and delivering shareholder value.” Good news or bad news for agencies? An article on Adweek shed light on the fact this may impact agencies negatively as the combined company will be spearheaded by WWW.M A R K ET I N G - I N T ER A C T I V E.C O M

a group known for its efficient cost-cutting measures. This was also further validated by the fact the company estimated that US$1.5 billion in annual cost savings were to be implemented by the end of 2017. Is this good news or bad news for agencies? Agency leads have given mixed comments. Marie Gruy, regional director of Carat Asia Pacific, said that as a part of the streamlined operations, there was always the looming possibility of agency consolidation. However, while cost savings are likely to be a focus for any global F&B company today, the silver lining remains there will be a strong focus on growth and expansion which is a core priority for this newly formed entity. “Given this, innovation and good ideas will always still be welcomed, as long as they can be well quantified by partner agencies too,” Gruy said From an agency point of view, she explained that any company which has the capability to “substantiate its media efficiencies and contributions to the business in the shorter and longer term can only benefit further from working with newly created global entities”. Thomas Sutton, country director of Landor Indonesia, was less optimistic. “I doubt the merger will have a positive impact on anything other than for the new brand powerhouse being created. Clearly economies of scale will be of benefit in logistical areas such as distribution. This merger may give them more negotiating clout with retailers when negotiating product listing … will these economies of scale be passed on as price benefits to consumers? We can only hope,” he said. “Unless there are clearly conflicting brands within the new merged portfolio, I doubt much

“I doubt the merger will have a positive impact on anything other than for the new brand powerhouse being created. Clearly economies of scale will be of benefit in logistical areas such as distribution. This merger may give them more negotiating clout with retailers when negotiating product listing … will these economies of scale be passed on as price benefits to consumers? We can only hope.” Thomas Sutton – country director, Landor Indonesia

will change. However, if cost-cutting is key we may see rationalisation of the individual brand ranges themselves – perhaps a reduction of the number of variants and SKUs some brands offer. “Without a doubt, agencies will be affected by the merger. Some will lose out, but some may see their portfolio increase as the new entity consolidates their agency roster with fewer agencies.” Meanwhile, Tom Child, senior consultant at Clear Ideas, also highlighted that when the merger was announced, share prices rocketed by up to 35%. This clearly demonstrated the consumer has trust in the stability and longterm success of these brands working together. “The bigger challenge comes from a portfolio perspective and recognising where the international growth will come from. The merger provides a diverse portfolio of brands, which needs an efficient and effective approach to innovation in order to gain the return of growth the owners are clearly after,” Child said. John Cahill, Kraft chairman and chief executive officer, who will become vicechairman and chair of a newly formed operations and strategy committee of the board of directors, said that together the company would have some of the most respected, recognised and storied brands in the global food industry. The combination, hence, will offer significant cash value to shareholders and gives them the opportunity to be investors in a company very well positioned for growth. M AY 201 5 | a dvert i s i ng + m a r ke t i ng 2 7

NEWS ANALYSIS

ARE YOU GUILTY OF THESE MARKETING SINS? Social media analysis reveals what really riles consumers.

New research for the World Federation of Advertisers (WFA) has identified the seven key ways that brand marketing is most likely to annoy consumers. Social media agency We Are Social conducted a detailed analysis of English 2 8 a d verti s i ng + marketi ng | M AY 2015

language Twitter comments about ads over the course of six months in the context of Project Reconnect, the WFAâ&#x20AC;&#x2122;s flagship initiative to better align brand and marketing strategies with peopleâ&#x20AC;&#x2122;s changing expectations in the digital age. The goal was to help marketers

identify acceptable versus unacceptable behaviours with a view to identifying potential recommendations and solutions. The findings were based on analysis of 670,000 English language Twitter mentions making negative reference to advertising in the WWW. MARK E TING-IN TE RAC TI VE . C OM

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six months between August 2014 and February 2015. A random sample of 5,000 tweets was analysed to identify key concerns. The research found: There were more than two million negative tweets about advertising in the past year in all languages. There were, however, more

“The good news is there are three million positive tweets compared with two million negative ones. But it’s the latter we should focus on as an industry. We are not blind to the fact that ads can be annoying, intrusive and even be seen to contribute to social problems.” Stephan Loerke - managing director, WFA.

tweets were replies, usually agreeing with the negative sentiments of the original tweet. Men are more likely to complain about brand marketing by a ratio of 60:40, but both sexes are equally likely to be positive. Many of the comments reflected strong emotions and profanity was a common feature of the most negative comments. The average complainant had more than 1,000 followers, indicating each negative comment reached a significantly larger audience. TV ads caused the greatest number of negative comments followed by online and radio. Adverts on music streaming service Pandora appeared to annoy our sample the most, but YouTube and Spotify interruptions were close behind. From the research, Simon Kemp, from We Are Social and Jon Wilkins, executive chairman of Karmarama, picked out the seven most common triggers of consumer backlash against brand marketing messages. 1. Ad malaise: A very large number of tweets expressed a generic dislike of ads or commercials. More extrapolated tweets referenced the ubiquity and overall frequency of ads, the length of the ad break or the context in which the ad appeared. 2. Interruption: Consumers recognise that ads help pay for content, but they expect marketers to make an effort to make their marketing less irritating. The tweets analysed showed that interruption was most annoying during highintensity content such as action and drama shows or live sporting events. Interruptions to The Walking Dead were the most common references to a specific piece of content. Marketers need to make more of an effort to add value to the context in which they appear rather than simply interrupting it. 3. Incongruity: Too many brands are choosing the wrong moment and the wrong audience for their messages. It might be the right time, but the wrong place or the right time, but the wrong audience. Tweets complained about inappropriate ads – those that appeared when they watched TV with their parents or ads that were simply irrelevant. Constant re-targeting was also heavily criticised.

than three million positive comments about advertising during the same period. Just over half the tweets were original statements, but 37% were re-tweets, meaning Twitter users have retweeted negative comments almost 750,000 times. One in 10 WWW.M A R K ET I N G - I N T ER A C T I V E.C O M

4. Deception: The truth will set you free. Claims that consumers feel to be exaggerated really rile people; they expect brands to tell the truth, the whole truth and nothing, but the truth. Thanks to social media it doesn’t take long for

people to call out false or deceptive claims and drive negative engagement around the brand. Brands will gain credibility if they are honest and don’t airbrush the challenges they know they face and consumers know they face. 5. Overkill: Too many ad breaks and often ad breaks that are too long. Frequent interruption to a particular piece of content or media channel can create irritation with all commercials, regardless how often any individual message appears. This is combined with a rage against high frequency advertising. Even the best stories lose something in the retelling, particularly if you’ve already heard it seven or eight times before. 6. Getting personal: Online targeting that’s meant to be clever, but is actually annoying. Deficient algorithms might be the industry’s biggest challenge: ads inappropriate to the content alongside which they feature; consumers clumsily targeted without heed for personal circumstances and sensitivities; and numerous cases where individuals were targeted by certain brands even though they had already expressed negative sentiments about the brand in question online. 7. Dearth in quality: Too many ads are just poor and end up annoying consumers. Brands need to prioritise quality over quantity, meaningful engagement over frequency of exposure, and work harder to test whether the ads are engaging and add value before they expose them to consumers. Stephan Loerke, WFA’s managing director, commenting on the results, said: “The good news is there are three million positive tweets compared with two million negative ones. “But it’s the latter we should focus on as an industry. We are not blind to the fact that ads can be annoying, intrusive and even be seen to contribute to social problems. Project Reconnect tries to help marketers identify these problems and propose solutions so they can better align their strategies and executions with what people want and expect of brands.” The research builds on existing work in the context of Project Reconnect in collaboration with We Are Social on what makes for great brand marketing in the digital age in 2014, which identified the new four “P”s of successful marketing in the digital age (people, purpose, principles and participation) and by Firefly Millward Brown, with parents and teens in 2011, on rules for marketing in the digital age. M AY 201 5 | a dvert i s i ng + m a r ke t i ng 2 9

GIVE YOURSELF A SPORTING CHANCE Sport has long been a great marketing opportunity for brands given the passionate fan following it has across the globe. Our latest Master Report explores how sports marketing has evolved in the digital age and what it means for brands. BROUGHT TO YOU BY:

3 0 a d verti s i ng + marketi ng | M AY 2015

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WWW.M A R K ET I N G - I N T ER A C T I V E.C O M

M AY 201 5 | a dvert i s i ng + m a r ke t i ng 3 1

HITTING A HOME RUN

Sport today is a big part of most people’s everyday lifestyle. It has become a point of passion and entertainment and brands are fast picking up on this trend. Rezwana Manjur explores how marketers can score big in this arena.

Making the right choice: Why SIA chose the Singapore Grand Prix?

Sports events have the power of attraction. They are able to pull in people from all walks of life and across generations into one singular platform. The infiltration of technology has made any localised sporting events a shared form of global entertainment. “Sports marketing allows brands to piggyback on the sentiments and devotions of fans towards their favourite teams and athletes,” says Kiyoshi Tatani, president of Mizuno Singapore. And brands are fast learning how to use this to their benefit.According to a study by research organisation A.T. Kearney, the market for sporting events was worth US$80 billion in 2014. During the FIFA World Cup last year, globally, more than three billion people watched at least a minute of the major football event and the media rights were worth as much as US$1.7 billion in total. Yet, the report cited the World Cup to be only a small fraction of sports’ total economic impact within the scope of the global sports events market. The same study cited market revenue for sports events in 2014 from the sale of tickets, media rights and sponsorships was worth nearly US$80 billion. Tying that in with sporting goods, apparel, equipment and health and fitness spending, the sports industry generates as much as US$700 billion yearly. This, according to A.T. Kearney, is just 1% of the global GDP. EVOLUTION OF SPORTS MARKETING In a conversation with Marketing, Lucien Boyer, president and global CEO of Havas Sports & Entertainment, explains that in the 1970s associating with a sports team or event simply meant buying a sponsorship package to grab eyeballs and expose your brand. If a team did well, the brand would be associated with a great success 3 2 a d verti s i ng + marketi ng | M AY 2015

story. If it did not succeed, brands at least had the consumer’s emotions at that point of time. If a brand was savvy enough, it could possibly craft a story to get a journalist’s attention – but even then it might not be exactly what the brand had in mind. “But essentially the brand sponsorship story essentially ended there,” Boyer says. Fast-forward to modern-day sports marketing, negotiations have taken a completely different turn. Today, buying a hefty sports sponsorship package does not do anything for your brand if you cannot generate a meaningful conversation with your target audience. “What is important today is not that you are exposing your brand, but rather that people are talking about your brand. You can’t just hope for people to notice your brand because there are so many brand exposures that people do not really pay attention,” Boyer says. He adds that in modern-day sports marketing, the concept of buying eyeballs is dead and brands need to earn the attention by connecting with the consumers. “It is not about touch-points anymore, it is about passion points and connection.” Brands today need to find a reason to be in the arena and create share-worthy content which gets consumers involved. Echoing similar sentiments is Nicholas Ionides, vice-president of public affairs for Singapore Airlines, who says that it is the right fit that matters. “We can only speak from our own perspective, and we would put it this way – we would not be doing this if we did not feel it was right for us,” he says. Both the SEA Games and the Singapore Grand Prix are exciting WWW. MARK E TING-IN TE RAC TI VE . C OM

events on Singapore’s sporting calendar and through the brand’s involvement it is able to enhance both tourism and sports for the benefit of Singaporeans and visitors alike. He adds that prominent sports events in Singapore go a long way on the global scale towards boosting Singapore’s standing as a sporting hub, while adding to its attraction as a leading tourism destination. “It is simply the case of the right opportunities presenting themselves at the right time.” While buying into a pricey sponsorship gives a brand a medium to plaster its name across, and rights to some exclusive bits of content, it is what it does after with the content that actually matters. Tatani adds that sports marketing and content marketing today have several areas of overlap. “If content marketing is bread, sports marketing is butter. The two are dichotomous, and have to work hand in hand,” Tatani says. AMBUSH MARKETING With the fragmentation of media, consumer attention is getting more and more sporadic. While most content creators’ and advertisers’ struggle is to reach out to different demographics, sports naturally cuts across numerous target audiences. Because of this, and the fact that sports sponsorship does not come cheap, more and more brands are resorting to ambush marketing. Ambush marketing is done by advertisers who wish to be part of a conversation around an event, but may not want to fork out huge amounts of cash for it. One example of effective ambush marketing was during last year’s FIFA World Cup. While adidas had the official rights for the World Cup, arch-rival Nike managed to grab a big slice of the conversation. While Nike was not able to have the logo of the World Cup in its ad campaigns, it found a way around the situation. The brand came up with a mega million-dollar TVC that ran across various platforms and in various short and long-form clips. These ads featured football heavyweights playing in the World Cup. Nike was able to get its brand name out there and ambushed adidas by its sheer association with players. “Ambush marketing was easily blocked in the past and you could say you are an official sponsor and people would care about the title. But that’s not the case with the rise of media fragmentation today. We always advise our clients today is to think like a challenger brand and ambush yourself. Be in the challengers mind. Do as if you didn’t have the exclusive rights,” Boyer says. So if that’s the case, and ambush marketing can potentially be so rewarding, why dole out the billions of dollars on sponsorship? “Exclusive content is still a major component of any successful sports marketing strategy,” Boyer explains. “If a brand can combine its exclusive content rights with a challenger mindset of ambush marketing, it can work wonders for the brand.” In the case of adidas, the brand did just that. Adidas gave birth to its ball Brazuca. Unlike any other ball, Brazuca had its own personality. It also had a camera inserted in the ball and players were urged to interact with it. Brazuca had its own tone of voice, own perspective and was able to tell the World Cup story in its own way on its own blog. Instead of being just an official sponsor, adidas came across as a cheeky fun brand that brilliantly displayed behind-the-scenes footage and stories which it already had in hand due to the official partner title. WWW.M A R K ET I N G - I N T ER A C T I V E.C O M

Riding the wave: It is important to keep in mind the value big sporting events such as the FIFA World Cup add.

The brand was able to take the experience out of the pitch and throw it onto the global sphere. “Today media fragmentation has led to people watching the match on one screen while simultaneously engaging in conversations on the the second and third screen ones. A brand that can feed this second or third screen with interesting and relevant content will maximise the connection,” Boyer says. WHAT EVENT ORGANISERS FEEL ABOUT AMBUSH MARKETING ONE Championship CEO Victor Cui says while his event organising committee pens down strict guidelines to ensure that ambush marketing is not allowed inside the premises of the sporting event, it is still a compliment to any event organiser if the event is ambushed. “Ambush marketing means you are doing very well in the arena and that organisations want to market around your event to form an association with your brand,” he says. He adds this is when event organisers should strike up a conversation and reach out to brands to convince them of the value of being an official partner. Like Boyer, he adds, that being an official partner has added benefits such as marketing within the event premises, receiving broadcasting rights and PR support which cannot be replicated in an unofficial capacity. “Brands now want more than just awareness and exposure. They are looking for strategic partnerships with world-class sports organisations that are aligned with the goals they want to achieve. Sports events provide the brand with more mileage as they can tap on a myriad of live activities and broadcasting opportunities,” he says. He adds that while marketing spend in the sports sponsorship arena is at an all-time high today, it is only about to get higher as marketing gets more and more sophisticated. M AY 201 5 | a dvert i s i ng + m a r ke t i ng 3 3

TECHNOLOGY: THE MARQUEE SIGNING AND MVP FOR SPORTS MARKETING SUCCESS Sports and sports marketing involve blockbuster fixtures won or lost by defining moments, determined by quality of decision-making and predetermined strategies. However, here’s the real kicker: Technology. When purposefully adopted, it is a proven game changer. England’s elimination from the 2010 FIFA World Cup serves as a case in point. During England against Germany, the referee’s failure to award England a legitimate goal was the defining moment. FIFA has since introduced real-time technology to confirm if a ball has crossed the goal line, helping referees make informed decisions. In addition, teams are partnering analytics providers to capture sophisticated player data, and formulate strategies such as players’ diet plans and training regimes, for optimal match-day performances. Off the pitch, the narrative remains the same. Regional interest in sporting events is growing – the 28th SEA Games, Asian Mixed Martial Arts tournament and ICC Cricket World Cup were recently added to an Asia-Pacific (APAC) broadcast roster that already includes the Barclays Premier League, English FA Cup and Formula One, creating an attractive environment for brand-fan engagement via sports sponsorships. In 2014, a projected US$12 billion or 28 percent of global spending was invested in sports sponsorships in APAC, and that number is set to increase by 4.4 percent in 2015. As shareholders relentlessly pursue product sales through partnerships, cash investment is being scrutinised more than ever before. The demand for informed decision-making and accountability is on the rise. Furthermore, as fans come to expect personalised content, the goal posts have shifted. Success is now dependent on a brand’s ability to identify opportune moments and effectively engage sports audiences. Taking a scattergun approach – mindlessly placing commercials across multiple TV channels throughout the day, or slapping a logo onscreen at every given opportunity, then hoping for a rub of the green is becoming ineffective in raising brand awareness and product purchasing intent. Today, brands must identify the precise moment where they can leverage the rich emotional attachments that leagues, teams and athletes have with their fans. And understanding the following trends would score a brand its first sports marketing hat-trick. TREND #1: ‘MAKE YOUR OWN LUCK’ WITH DATA ANALYTICS Sports fans epitomise loyalty, also a barometer for brand engagement and business profitability. Engaged consumers are also more loyal and more likely to purchase products. However, engagement is now a game of inches. Straight off the bat, marketers need to adopt a data-driven approach to understand and address needs and wants. For a single view of fan behaviour or preferences, brands can integrate anonymised data from the following advanced analytics tools to cover all bases. Data is then used to formulate strategies by selecting the most relevant advertising media based on niche audience segmentation: • Sports channels’ viewership data from a household’s pay TV set-top box • Sports-related web browsing data from Internet broadband and 3G/4G mobile subscriptions 3 4 a d verti s i ng + marketi ng | M AY 2015

• Research on household demographics and purchasing preferences for each product category • Message testing conducted to a select group of registered consumers TREND #2: GEO-ANALYTICS (LITERALLY) ENHANCES A BRAND’S POSITIONAL AWARENESS Imagine this: The 2018 FIFA World Cup is underway. Public community centres in Singapore screening ‘live’ matches are attracting huge crowds daily. During half-time, viewers receive messages on their smartphones highlighting a discount for food orders in the next two hours, encouraging them to visit a nearby outlet of an official World Cup food and beverage sponsor. These messages are personalised based on an individual’s geoanalytical data and profile. Geo-analytics enable marketers to shortlist and rank locations by density of potential customers. Businesses can even open new outlet locations or adjust operating hours to catch the anticipated crowd. By interpreting historical and real-time footfall volume, sports marketers can target consumers at the right moment, to meet a specific need or want. TREND #3: VIDEO TECHNOLOGY THE NEXT BIG HIT FOR BRAND INTEGRATION AND FAN ENGAGEMENT Virtual advertising uses virtual reality (VR) and augmented reality (AR) technology, embedding three-dimensional brand images into a ‘live’ broadcast. Sports marketers can then create and tell editorially relevant stories during the programme itself. While such ad formats previously required significant financial investment, the technology has made its way into APAC and has become more affordable. With VR and AR technology, sponsors are no longer limited to advertising during commercial breaks. Virtual advertising ensures that the attention of audiences are captured when viewership is at its peak, so advertisers can stay in the game. Huffing and puffing is the lifeblood of sports teams and marketers. However, a proverbial advertising arms race and a market of fragmented consumers mean that that endeavour alone is insufficient. As the saying goes, “Life is not measured by the number of breaths we take, but by the moments that take our breath away.” There’s no better time than now for brands to leverage technology and create opportune moments for engagement across multiple platforms. As England’s national football team would attest – technology-led game plans are no longer an option, but a necessity. Marketers must do more with technology, to avoid the ignominy of being blindsided by the high-stakes, high-pressure demands of fans and shareholders.

Anurag Dahiya, Head of Content and Advertising Sales, Group Consumer, Singtel

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CASE STUDY

HOW SINGTEL’S ANALYTICS CAPABILITIES AND AD SOLUTIONS SUPPORT OPPORTUNISTIC CROSSBORDER EXPANSION THE BACKGROUND Founded in 2004 and based in Guangdong, OPPO is an electronics manufacturer that delivers mobile devices in more than 20 countries. Its major product lines include portable media players, LCD TVs, DVD/Blu-ray disc players, feature phones and most recently, smartphones and tablets.Having successfully entered China’s mobile phone market in 2008, OPPO began exploring international expansion in 2010. By mid-2014, OPPO had established a presence in the US, China, Australia and other countries in Europe, Asia, the Middle East and Africa. By now, the tactile and aesthetic qualities of OPPO’s designs, and its commitment to co-develop products with its customers through userexperience feedback channels had achieved widespread recognition. As such, with its latest N3 and R5 models, OPPO started its most challenging cross-border expansion project yet in the final quarter of 2014 - delving into Singapore's saturated smartphone market. THE CONTEXT/CHALLENGE The rise of smartphones has been swift, with technological innovation creating an incredibly sophisticated mobile ecosystem. Singapore’s advanced infrastructure meant it was uniquely poised within this vibrant scene. The early introduction of 3G and public Wi-Fi made Singapore a “mobile-first” nation. By 2014, Singapore had the highest smartphone adoption rate globally, with most consumers carrying either an Apple or Samsung model. “As a new entrant in a mature and small, but affluent market, quickly building brand equity would be essential for successful expansion. So we sought a partner that could provide a comprehensive understanding of and access to local consumers across multiple platforms,” said Sean Deng, managing director of OPPO Singapore. Building brand equity involved a three-step approach: • Increasing brand awareness among consumers mostly likely to purchase smartphones. • Driving preference by communicating the distinctiveness of the new N3 and R5 smartphones. • Encouraging product trials at the newly opened OPPO Concept Store at Suntec City Mall. Finally, the campaign had to be consistent with OPPO’s brand positioning, “The Art of Technology”, which required its marketing partner to consider the granular details in everyday living and combine that with technology to create trendsetting by-products and unique consumer experiences.

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THE SOLUTION Acknowledging that digital media has created a more elusive consumer with short-term thinking and who lives across multiple screens, OPPO sought a partner that had been keeping up with the times, one that apart from offering a cross-platform approach, was agile and armed with the latest marketing technology. Singtel’s latest data-driven solutions analysed dynamic consumer behaviour across platforms and delivered robust insights. With these insights, OPPO could then strategise and select the right platforms for effective engagement, optimising its advertising spend. Daily channel-by-channel viewing data from Singtel TV subscribers was combined with insights from Singtel’s Project Newsroom – a commissioned report detailing household demographics and product consumption information. Using this data set, consumers who tuned in to watch the Barclays Premier League (BPL) were identified as OPPO’s most relevant niche target segment for the following reasons: • BPL viewers had one of the highest purchase percentages (81%) for consumer electronics. • A majority (40%) of BPL viewers within the 20-39 age group and 32% were highly affluent (>$10,000 monthly household income) – in line with OPPO’s aim of “capturing energetic young hearts”. • These viewers are also steadfast seekers of the best in local food and beverage (97%) – the R3 and N5’s superior smartphone cameras being a perfect foil for these “foodstagraming” gastronomists. Informed by these insights, OPPO opted for a marketing campaign that included Singtel TV channels broadcasting the BPL, online assets HungryGoWhere and inSing – popular sources for local food and beverage and lifestyle recommendations, as well as news aggregator NewsLoop for content amplification. “With the fragmentation of media consumption, ‘audience targeting’ has become today’s marketing imperative. The identification of target segments must be insight-driven for sound decision-making. Singtel’s data-driven solutions, variety of platforms and BPL telecasts provide OPPO with flexibility and dynamism. Consequently we have been partnering with Singtel since we entered Singapore,” Deng said. BUSINESS RESULTS OPPO evaluates a marketing campaign by looking at how it increases brand awareness, drives product preference, increases foot traffic at its Concept Store and contributes to revenue. Overall, the campaign led to an increase in brand awareness and consumer purchasing

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intent, contributing to a rise in OPPO’s smartphone sales during the final quarter of 2014, while delivering the following: 1. Increased brand awareness by engaging more than 243,000 BPL viewers per month from October 2014 to December 2014. • Association with the most watched football league reinforced OPPO’s premium positioning. • Optimised media plan across both “live” and repeat BPL matches by airing an OPPO TVC to reach out to its target audience of young, affluent and tech-savvy consumers. • Brand integration within Goals HQ, a top-rating show on Singtel TV hosted by celebrity host Tabitha Nauser, where coverage on the OPPO launch event was seamlessly incorporated. 2. Content marketing and online re-targeting to highlight product features, driving preference across online and mobile platforms. These efforts engaged more than 1.3 million active monthly users, with resultant click-through rates exceeding the industry benchmark (5% higher for inSing, 65% higher for NewsLoop). • inSing: “Live” social media coverage and a video of the OPPO launch event on Facebook and YouTube, along with advertorials and customised banners highlighting features of the N3 and R5. • HungryGoWhere: Creative execution of gallery sponsorship on Singapore’s top food and beverage portal, where a dining guide for Gardens by the Bay featured images taken using the N3’s high-res auto-rotating camera. • NewsLoop: Advertorials and banners on Singtel’s news aggregator application, with a sponsored category on the homepage ensuring clutter-breaking brand visibility. 3. Product giveaways and in-store footage which encouraged product trials and drove foot traffic to the OPPO Concept Store from October 2014 to December 2014. • A quiz was incorporated on Goals HQ, allowing viewers a chance to win a new N3 smartphone. • Segments of Goals HQ were shot in the OPPO Concept Store to provide a sneak preview of the store’s physical space and location. “Singtel’s advertising channels are an integral part of OPPO’s intent to build its brand equity in Singapore,” Deng said. “Given the integrative nature of the Singtel platform, OPPO has certainly benefited in terms of heightened brand and product awareness. “It is for this reason and also due to the collaborative nature of the Singtel advertising team that we have embarked on a second campaign in February 2015. As we continue our content marketing efforts, we project our smartphone sales to grow at an increasing rate in the months ahead.” THE SECOND CAMPAIGN With Singtel introducing virtual reality (VR) and augmented reality (AR) technology in early 2015 to help local advertisers address the

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challenge of viewers paying less attention during commercial breaks, OPPO will be the first brand in Singapore to utilise the Singtel-acquired virtual studio. “Being a technology company, we are always on the lookout for new ways to showcase the brand in a manner that befits our obsession with quality and R&D,” Deng said. “With VR and AR technology, we are able to have our brand visually incorporated into sports programmes through three-dimensional scoreboards and a stylistically redesigned virtual background. This ensures that our content captures the attention of audiences when viewership is at its peak. “Singtel’s approach when providing marketing services mirrors OPPO’s brand philosophy when designing consumer electronics. “As a part of improving the user experience associated with our products, we are keen to advance the use of VR and AR, as well as our engagement with local football fans. Our second campaign involves advertising on Singtel TV channels broadcasting the BPL and English FA Cup, coupled with Singtel’s online and SMS advertising platforms.”

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The second edition of Content 360 saw 120 senior marketers and industry professionals discuss the evolution of content marketing. Topics ranged from storytelling to organisational readiness to embracing content marketing to budgets and measurement. Here are the key discussions that took place at the conference.

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CONTENT MARKETING LESSONS FROM THE SINGTEL-GUSHCLOUD SAGA

A hot topic during the first day of the Content 360 conference held by Marketing was the Singtel Gushcloud saga. Recently, a leaked social media brief got both the telco and its then social media partner Gushcloud in trouble, as the brief was found to be urging bloggers to slam Singtel’s competitors, M1 and StarHub, to promote Singtel’s youth plan. Speaking on the issue was Miguel Bernas, currently director of digital marketing at PayPal. (Bernas was last Singtel’s digital director.) Reflecting on the situation, he said that what this saga clearly highlighted was the fact brands 4 0 a d verti s i ng + marketi ng | M AY 2015

needed to have a proper content strategy and an execution process in place when it comes to content marketing. This process then needs to be implemented throughout the organisation and to be taken seriously by staff and external members across the board. Unchartered territory for brands He added the second and possibly more pertinent issue that the incident highlighted was the “fundamental flaw in the blogging industry which is, to date, mostly unregulated”. Adding the industry is mostly dominated by “a bunch of youngsters” who have a voice and audience,

but what it “lacks in standards are authenticity and honesty”. “Authenticity is about a brand being honest about its role in creating a piece of content. The idea of paying a person to share positive words about a brand and then passing it off as their own content does not sit well with the notion of honesty and authenticity,” he said . His views were supported by Jamshed Wadia, head of social and digital media at Intel APJ. Wadia added that while there was a lack of awareness on authenticity in the blogger influencer sphere, and that the realm WWW. MARK E TING-IN TE RAC TI VE . C OM

desperately needed regulations, ultimately it boiled down to brands exercising plain and simple common sense. He explained that content marketing was ultimately the basis of online marketing and for it to succeed, clear definitions are needed. “If a brand’s processes and products have flaws, those issues need to be fixed before the brand can jump onto the content bandwagon. Failure to do so will simply end up in negative publicity through the content marketing strategies put in place,” he said. Bernas and Wadia added that content marketing needed to be viewed as a long-term strategy, but mostly, marketers treated it as they would a traditional marketing or acquisition strategy where they were in a hurry to see the ROI. This “fear and pressure of ROI in return makes brands embark on crazy [strategies]”, added Wadia. Building trust online Meanwhile, Anthony Hearne, regional director for SEA, India and new markets for Outbrain, also added that today trust was a major issue in the online realm. However, he was optimistic content marketing could play a big role in pushing the needle on the trust factor and influencing digital marketing as a whole. “For the first time, through content marketing, marketing can be valuable to consumers,” Hearne said. Quoting the Edelman trust barometer, Hearne said that in 2015 there were more distrusters in the world then trusters. A deeper delve into the data showed that 75% of major institutions in today’s world have all declined in trust over the past 12 months. Trust in the media is down by 2%, in business down 2% and even in NGOs, down 3% globally. Another 2013 survey by Nielsen showed the trust factor was especially low online when it came to display ads on mobile and online banner ads. However, that same Nielsen “Trust in Advertising” research illustrated that while most forms of “advertising” languish at the bottom of the trust list, towards the top of the list there were high trust opportunities that should form an important part of any brand’s digital “marketing” efforts. Nearly 69% of consumers indicated they completely or somewhat trust branded websites – more than any other form of online or offline media. Close behind this is consumer opinions posted online (68%) and editorial content (67%) both of which can be used powerfully by brands in their digital marketing efforts. “This shows that with content marketing, WWW.M A R K ET I N G - I N T ER A C T I V E.C O M

we have the fresh buds of hope sprouting out of web pages and onto our many different devices,” Hearne said. He added that in our increasingly digitalised world, the most important thing for marketers in Southeast Asia to wrap their head around in digital marketing is the idea of trust. This is a far more human-based issue than a technical one. He added that content has much more to offer than traditional advertising to both the brand and the consumer. “You can finally tell your brand story online and in a way that is authentic. You’re giving your customers advice and taking them behind the scenes. Not selling a product.” Hearne, however, noted that with the emergence of native advertising and other innovations, there were perhaps too many opportunities for brands to try to “dupe” their customers. “Content marketing is not about camouflaging your ads on a publisher page to bait people into clicking on them or to try to get them to buy your product. It’s about being part of someone’s day,” Hearne said. Ultimately creating and distributing spam content will hurt the industry as a whole and risk the future of publisher monetisation, he added. In-house content creation versus external sourcing Nissan Motor Corp’s editor-in-chief Dan Sloan added that while paying for external content creation may offer greater peace of mind, creating content in-house also has its perks. One such arena is for a brand to have better access to speak about issues previously closed to the public that are sensitive. Addressing

those issues will ultimately depict the brand in an honest light and help build a better relationship with these customers. Sloan explained that manufacturers are known in Japan for “monozukuri” (making things), and his team saw similarities in traditional factory production and their media centre content “kojo” (factory). This led to the birth of the term “koto-zukuri” – the stories behind making things. Essentially, he added, this is what content marketing is all about. “While it was more trial and error when the media centre began, we operate to a good degree in this production vein now, trying to learn from utilisation metrics on how to make the next round of content creation even more successful.” Distribution partners and audience targeting However, Sloan was also quick to add that while any brand might have a content team of experienced journalists and writers, this is not complete without the right distribution partners. “Having an agency with a distribution strategy as part of the overall plan would be essential. To be frank, making it is often easy, but shepherding it to an audience, the right audience, is more of a challenge.” This was a sentiment echoed by Chris Reed, global CEO of Black Marketing, who was on the panel later in the day. Reed added it was vital for brands to understand the content that would resonate with their consumers and understand which channels to use in the distribution process. Ultimately, it should not just be about content marketing, but rather content that resonates with the right audience. M AY 201 5 | a dvert i s i ng + m a r ke t i ng 4 1

TARGETING YOUTH WITH CONTENT In 2011, OCBC created a people-powered content marketing strategy by listening to its consumers’ desires. Taking a cue from the burgeoning popularity of the hipster culture in Singapore at the time of its launch, OCBC’s FRANK tapped into the lifestyle trends of youths and young professionals and tailored its content accordingly. “Content marketing begins with understanding the buyer persona,” Aldrina Thirunagaran, assistant vice-president of digital marketing at OCBC Bank, said at Marketing’s Content 360 conference. “We wanted to tell our consumers that FRANK is not all about credit cards, so we wanted to share stories that are relevant to the audience.” The content team at OCBC adopted the look and feel of “hipster art” for FRANK’s products through its infographics, typography and photography. OCBC maintained an active audience on its Facebook page, based on three key engagement screens which it found to be of most interest to its targeted audience. The bank found Millennials were more interested in curated posts pertaining to financial advice,

lifestyle as well as events and news that were in the social media landscape. As such, its Facebook page content was tailored to provide information on how to be financially savvy; tips on lifestyle choices; and socially relevant content in order to increase consumer engagement and pique their interests in current events. Further, understanding the target audience’s need for more lifestyle content, FRANK launched a series of “list” content, with the aim of guiding the tastes of Millennials. OCBC also used visual content to engage its young audience. For its video campaign launched in 2014, “Get It Right This Christmas”, Thirunagaran said OCBC “took a couple of risks when making the video”. The content team decided to cast a familiar face: the young boy was “Andy” whose character became famous for the World Cup advertisement on gambling. According to Thirunagaran, working with a familiar face for content creation generated a lot of conversations with users. It also prompted shares and comments on OCBC’s campaign and helped to keep the bank

more engaged and connected to its viewers. The decision to include a familiar face impacted the shareability of the content produced, Thirunagaran said. Another campaign OCBC launched for FRANK CNY Tips was called “O$P$”, which featured two local female netballers with an extensive following on social media. Thirunagaran said the cast’s popularity helped the video launch with considerable interest and buzz. Eager to play a “big brother” role to its viewers, the video was conceptualised by OCBC to convey tips for the Chinese New Year season, while also reminding its viewers of a cultural practice common to locals in Singapore. The importance of engagement was evident in the Facebook shares generated by online advocates for its visual content, which also led to a positive response from online viewers. For OCBC, creating a people-powered content marketing strategy relied heavily on the bank’s willingness in listening to its consumers and suiting its content to align with current trends that are popular among its target audience.

HOW TO SELL CONTENT MARKETING TO THE C-SUITE Speaking at Marketing’s Content 360 conference, Keith Lin, associate director for strategic and public affairs (digital news and content lead) at Temasek International, shared three tips on how to sell a content marketing strategy to the C-suite. “There is a general enthusiasm to sell brands using stories,” he said, and that the key to staying authentic and personal on social media channels lies in the brand’s ability to engage with its audience. “Engagement is the ultimate destination when it comes to successful content marketing.” In executing a successful content marketing strategy that guarantees effective engagement with consumers, Lin shared tips on how to convince your management to get on board with the plan. 1. Identify the target audience to shape content Ensure that content articulates the brand message consistently. There is also a need to highlight competition and know who is currently 4 2 a d verti s i ng + marketi ng | M AY 2015

in the landscape. Content marketers must set clear time frames to avoid burnout and know the objectives of the content. There must also be a realistic marketing budget. 2. Build a community of content champions “Have touch-points across the world,” he advised. Employees are marketers’ biggest advocates and make up an important part of the brand’s online community. Facilitating the ease of sharing preapproved content on employees’ individual social networks encourages engagement with content that genuinely interests them. He advised that it was crucial to calibrate employee social media guidelines to increase comfort levels with sharing content. 3. Use ROI terms that make sense to the layman Marketing jargon needs to be explained and articulated in a way that demonstrates impact. According to Lin, marketers must be able to show the proposed content is lasting and

permanent. There is also a need to estimate up-front expenses and be able to demonstrate long-term benefits for the brand. Since content marketing is all about tapping into the social media space where consumers and users are able to start a conversation around a brand, it is crucial for marketers to map the content strategy directly to the organisation’s vision and strategic objectives. According to Lin, broadcasting small wins can earn big buy-in, and that it is important to “land your own ROI and don’t oversell” in the boardroom. Essentially, he noted that marketers need to plan thoroughly, but also be prepared to change course when necessary. WWW. MARK E TING-IN TE RAC TI VE . C OM

HOW TO GET YOUR IDEAS APPROVED BY GLOBAL

Geoffrey Pickens (pictured), segment director of men’s and shave prep for APAC at Energizer Personal Care, said one hurdle he had to face when coming up with a content marketing strategy for the Energizer shaver personal care division in China, was having to convince his Western counterparts of some of his creative ideas. Speaking at Marketing’s Content 360 conference, he said that most of the time, the response to new ideas (from global) would be one which was positive, but then he would be quickly shut down by being told it would not work in the Western market. A survey by CEB and Russell Reynolds Associates highlighted the trend of local and regional leaders feeling unheard by global executives. However, he insisted that having a localised strategy in marketing is key for any creative ideas’ success. He added, “often regional and global creative ideas fail because of a lack of local input”. He explained that when his brand of shavers WWW.M A R K ET I N G - I N T ER A C T I V E.C O M

kicked off its marketing agenda to use a Bruce Lee impersonator named “Smooth Lee” to reach the youths, the idea was met with some resistance from the other markets thinking it was not adaptable enough. However, over the past three years, the idea has been recreated in eight countries. Brand awareness for the master brand spiked from 15% to 35% and sales increased more than 21%. “For content marketing to effectively work, all it takes is one brilliant creative idea,” he said. “This idea has to reflect the overall essence of the master brand personality and link back to the brand DNA. The master brand personality, or tone of voice, is how we say what we say. It is our attitude and is built from the words and images we use to convey who we are. This helps to create a distinct look and feel for our brand and helps consumers to recognise us.” He also added 91% of global consumers would switch brands for the same price and quality if they felt that a brand supported a

purpose beyond a business goal. Hence, brands need to actively listen to what the consumers’ bigger problems are and create great creative ideas focused on making their lives better. “Evolve from simply storytelling to storydoing by listening to your consumers’ bigger issues. Help make life easier for your consumers and be authentic and real in the process.” All these will ultimately serve to bring your brand to life. Kris LeBoutillier, digital content director of AP at Visa, added that having a global strategy trickle down to a regional level and then finally adapted to a local one drives deeper insights and generates closer conversations with those on the ground. What content creators have to remember is that content marketing is both editorial and marketing. While it is an arena that allows for more creativity and play, content created cannot, hence, simply go off tangent. “The content ultimately needs to be a part of the overall brand strategy,” he said. M AY 201 5 | a dvert i s i ng + m a r ke t i ng 4 3

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HOW TO SET UP GOVERNANCE PROCESSES IN CONTENT MARKETING

Just as your social media marketing needs governance, so does your content strategy. Speaking at Marketing’s Content 360 conference, Nadeem Amin, regional digital marketing manager for Kellogg’s Australia, highlighted the importance of social media governance. “There are different kinds of issues, as many as there are individuals, and each individual has a different way of looking at things,” he said. Likewise with content marketing – content governance is needed to standardise the way in which an organisation deals with contingencies on its social media platforms, he said. He defined content governance as a set of policies that includes processes, guidelines and educational resources to best represent your organisation to an internal and external audience. Any kind of content governance should be tailored to manage across different levels of issues that pervade across local, regional and global markets. WWW.M A R K ET I N G - I N T ER A C T I V E.C O M

Governance tools are also needed as an optimal way of managing reactions carefully through collective intellect, aided by the use of technology. According to Amin, tools here refer to a wide range from policy making to applications which are a set of best practices, guidelines, processes, procedures and best-in-class available software to do the job of content governance in ensuring the quality of an organisation’s social media platforms. He said it was crucial to define your governance team to include the following divisions: legal, corporate communication, consumer affairs, brand, public relations, human resources and digital. Create a workflow In ensuring the quality of dissemination of information, organisations need to create a specific content workflow. Amin advised that companies needed

to first plan their workflow before drafting content. Next, companies need to revise and troubleshoot any problems that arise in the initial stages before testing the final product. The finished work ought to be approved by appropriate divisions, preferably from more than three departments, before running the content to be published into the digital sphere. After the content was published, he said a social media policy had to be drafted immediately as a pre-emptive way to deal with any standard issue. The social media policy, he said, had to be “organic and flexible, with regular updates on social media best practices”. “Companies should also create a social media playbook that aligns with brand guidelines.” To do that, he recommended a content calendar so as to not clutter content with erratic updates and changes. A flowchart with department names and titles of the people, name of the person, contact details of that person, keeps things neat and tidy when it comes to communications. For approval processes to run smoothly, companies should develop an RACI code of conduct, and be responsible, accountable, consult and informed when drafting an approval process. An added advantage is having a flowchart of your approval process for easy reference. “Regularly training and educating your key stakeholders is a must to keep everyone up to date on what’s relevant and current in the social space.” To best achieve this, he said, it was necessary for companies to engage everyone to be responsible, while also having relevant people from various departments to be responsible for any issues that arise. To be consistently ready, companies would do well to (1) partner closely with its agency; (2) contract a specialist agency; (3) hire a specialist or a consultant, and (4) empower its digital team to be well-versed in up-to-date information technology. Overall, he said the planning stages were the most crucial. “Planning out for the long haul, not shortterm, is important. Long term planning is important in order to have effective responses and procedures.” M AY 201 5 | a dvert i s i ng + m a r ke t i ng 4 5

A CASE FOR COST-EFFECTIVE CONTENT MARKETING According to Vaasu Gavarasana, one of the co-founders of content marketing association, Asia Content Marketing Association (ACMA), the reason for embarking on a content marketing journey should be no different from traditional marketing: to drive active brand awareness. However, traditional marketing is a costly means, and running a campaign every day for 365 days a year is not sustainable for any brand, explains Gavarasana (pictured). “The only way to do marketing 365 days a year is content marketing,” said Gavarasana, speaking at Marketing’s Content 360 this year. He added that for a content marketing presence throughout a year with written articles (and no videos), one could start with a budget of SG$400,000. He explained that content marketing works out more effectively because of the advocacy the content creates. “It’s very difficult to compare digital to offline, there are simply too many variables. But if one were to attempt to make an apple to apple comparison, then to achieve 52 weeks of brand awareness and engagement, you can start a content marketing programme with SG$400,000. And if we were to attempt the same on TV, the budget can start anywhere from SG$1 million plus.” Therefore, your brand active awareness does not decay at all in an ideal scenario or declines more gradually. “In the case of a GRP-led method, the decay is almost immediate,” he said. He also advised that marketers move away from using the word “campaign” for content marketing because content marketing “is not about campaigns”, but rather “it is about being always on”. He added that more marketers must advocate a change in mindset from GRP-led to POEM (paid, owned, earned media). He explained that another common mistake marketers often made was not having their brand philosophies clearly stated in briefs sent to their agency partners. “How many marketing briefs have brand philosophy mentioned in it? Almost none. Start your marketing strategy with the brand philosophy and not the USP on your marketing brief.” However, Gaurav Gupta, marketing director of ASEAN for Kimberly-Clark APAC, is of the view that while no doubt content marketing can be a cheaper alternative to getting your brand awareness up as compared with your traditional 4 6 a d verti s i ng + marketi ng | M AY 2015

marketing, a number such as SG$400,000 is by no means cheap. For many smaller brands, it is still an expensive avenue to invest in. So how can a brand cut through the clutter? Beyond cost-effectiveness, cutting through the clutter is yet another hurdle to overcome in using this means. He added that with more and more brands breaking into this space, marketers are fast running out of fresh ideas to cut through the clutter. Despite content marketing being the buzzword in today’s marketing mix, the arena still has restricted resources when it comes to great executions. Results in the short-term are also limited. “Today, every brand is starting to look and sound alike,” he said. He added that at this stage of content creation, brands need to evolve from branded storytelling to brand storytelling. He explained that while the former is simply “borrowed interest stories with limited link to brand and generation of mindless content creation”, the latter “is a choiceful selection of content creation that actively tells stories”. It is the latter that builds the brand’s affinity with customers by telling the brand’s story. “Simply put, a brand story is a story that turns a brand’s promise into a unique point of view that helps the brand be differentiated, credible and appealing to its target audience,” he said. “Marketers need to find their brand story to bring their brand values to life. Find the reason for your brand’s existence, its purpose, its values, its history.”

Once the brand is able to get its brand story in order, it can take it one step further to the realm of content marketing where it can take its brand story and put it in a specific context. This is where Gupta urges brands to create a “glue” that is made of sensorial and emotional cues that bring to life and build the brand story. “Choose to then create content where you can build your brand story and bring it to life. And then execute your brand story consistently. It is better to have one fantastic content post rather than jump on every opportunity and stretch your brand.” He outlines three viable steps to creating a cohesive content strategy: 1. Create visual consistency • Ensuring all pieces look and feel like they are from the same brand. • Comprises of colour palette, fonts, logos and other sensorial elements. 2. Create brand story consistency • Ensuring all content is part of and builds the brand story. • Comprises brand tone, voice, character and personality. 3. Set your challenges • Simple enough that teams can understand and execute. • Low cost enough that following it doesn’t break the bank. • Executable across touch-points, media formats. • Agile enough to allow for user generated/crowd-sourced content. WWW. MARK E TING-IN TE RAC TI VE . C OM

6 LESSONS ON COMPELLING B2B CONTENT MARKETING While the B2B sector seldom has the luxury of working with the kind of emotional marketing strategies the B2C sector tends to use (think of Dove’s Beauty Sketches), B2B strategies can be equally engaging. Speaking on the brand’s content marketing strategies at Marketing’s Content 360 conference, Rupali Shah, digital marketing lead for Asia Pacific at Fuji Xerox, defined the goals of B2B content marketing this way: To increase awareness of the scope and variety of the business; drive engagement with the key decision makers and influencers; and support sales with qualified and interested leads. With that in mind, here are several effective strategies for B2B content marketing: 1. Leverage cultural trends boldly B2B campaigns don’t have to be boring. For example, in Japan, observing cultural trends, Fuji Xerox ran a “Doraemon Challenge”, a play on the popular Japanese anime series. It engaged five companies across departments such as design and experience, offering them its software to create the telephoto megaphone in the anime. In the cartoon, the gadget allows a user to speak to a person at a very long distance, like a megaphone. However, only the person the message is intended for is able to hear it. The campaign allowed the companies as well as the viewers of the video to see Fuji Xerox’s software capabilities. 2. Make full use of digital’s ability for personalised targeting Xerox Corporation ran a content marketing campaign in the US, the Chief Optimist, with Forbes Inc in 2012. “The idea was to show an optimistic future in business at the time, which was a very negative period,” Shah said. Forty per cent of the content was from Xerox and 60% from Forbes. This went across many sectors and was written so it could be read by a CIO or a CFO. “We print as well and we were able to print it so that the recipient’s name was on each copy,” Shah said. A personal URL was created for each person who received the magazine. When they went to the site, the magazine was personalised for them with their name in the URL. “This resulted in 70% of targeted companies interacting with the microsite and a 300% to WWW.M A R K ET I N G - I N T ER A C T I V E.C O M

400% increase in readership over previous email campaigns. It helped our sales people get to their C-suite targets. Our sales people gave feedback that the prospects had already gone onto the website and consumed the content and were able to talk about it.” Xerox has its own dedicated site called realbusiness.com discussing the issues of the business community. “The only thing from Xerox you will see is the name, powered by Xerox, but nothing else is branded,” Shah said. Fuji Xerox is also starting a digital centre in Singapore which will include a content team. 3. Take a leaf out of the book of B2C brands’ engaging sites The gripe many consumers have of B2B brands is their “brochure” sites – ones that lack depth, objectivity and strategic context that buyers are seeking to inform them through complex processes. Keep your site simple and easy to navigate, advised Shah. 4. Make content as authentic as possible The most compelling content is authentic, and it’s always quality over quantity. “I walk around with my iPhone and if someone (within the company or a visiting client) says something good about the product I record it and use it in marketing. This is not staged and is most compelling,” she said. 5. Give more than you take One of the worst things to do is to make consumers give out too much information just to read your content. Shah gripes about it, saying:

“I personally hate it when websites ask you all your details just to send you a white paper.” “Content that comes with too many requirements for downloading is a major turn off. Give people what they want, if they like it they will come back,” she adds. Ask for an email address first. If your content is interesting they will give you more. 6. Tailor your content to the right part of the marketing funnel Your content approach should be tailored to where the customer is in their journey. For example, if your consumer is at the stage where they are researching different solutions and finding out more about the subject, you need to help with awareness, said Priyanka Nath, digital and social media lead for South Asia at Dell. “You are giving the person the ability to give influence when speaking to the upper management. This is for the upper funnel – here you need to be agnostic and objective.” Monitoring tactic here: Sit back and listen. Get to the heart of your customers’ pain points, then look at how you can support with content. What are they researching? Use that as triggers to create content, said Nath. In the middle funnel this should change. For example, Dell is looking to build its big data solutions. It is trying to understand what is going on in the market. If you look at the amount of times big data is mentioned it is huge. This is the place where most people understand what big data can do for you. But they are still grappling with pain points. It’s important to join the dots for them, said Nath. M AY 201 5 | a dvert i s i ng + m a r ke t i ng 4 7

GOING BEYOND CLICKS AND LIKES: LENOVO ON EFFECTIVE SOCIAL METRICS how loyal our audience is. Moreover, we can pinpoint which areas of social we need to put more focus on, while also looking at how our activities are making an impact on our overall social efforts. Marketing: Is it worthwhile to attach a measure of financial value/return to social media investments? Gorostiaga: If you are able to properly attach a financial value to your social measurements, then it is definitely worthwhile. The biggest challenge is how to track this successfully. If your company’s objectives are not just about generating leads, but also around building loyalty, or awareness, then the “return” on investment may not necessarily be a monetary figure.

While social media and the online medium offers marketers the benefit of measurability, the issue this throws up is also an information glut. Myra Gorostiaga, global social analytics lead for Lenovo, talks to Marketing about effective social media measurement. Marketing: What are the biggest social media measurement mistakes companies make? How has Lenovo avoided these mistakes? Gorostiaga: Focusing on one metric, without the context of another. For example, you can choose to look at total volume of engagement to measure how well an activity on a social platform performed. The volume of engagement might tell you how responsive your audience was to your content, but without the context of reach you would not know the proportion of people exposed to the content that took action to engage. At Lenovo, we try not to focus on a single metric to measure success, rather we choose a mix of metrics to add context and tell a story. Marketing: Surely most marketers realise that vanity metrics such as “likes” and “followers” have limited value. What is a better way of looking at it? 4 8 a d verti s i ng + marketi ng | M AY 2015

Gorostiaga: I do not believe that “likes” or “followers” should be completely discounted, depending on the maturity of your social presence. What is important is that marketers use it to supplement other measurements of success. Having a multitude of metrics at your disposal gives you the flexibility of aligning the right metrics for your business, but it can also be overwhelming. That being said, every company is different and marketers should first define their objectives for social media, and then map the appropriate metrics back to each goal. Marketing: What key metrics does Lenovo track on the major social networks it is present on? Gorostiaga: We look at four key areas on social: participation (unique number of people interacting with our content); acquisition (how much is our community growing); retention (how many people are coming back frequently to interact with us); and shareability (how many people are sharing our content with their own communities). This is what we call the PARS scoring system, as part of the social health index. Through this, we are able to assess how our audience is responding to our content and

Marketing: What advice can you give marketers who want to refine their social media measurement strategies? Gorostiaga: You should start out by asking yourself a few questions. 1. Is your social media strategy aligned to your business objectives? If it is, then the metrics should easily fall into place. 2. Do you have a complete view of your social performance across your key metrics and platforms? For Lenovo, it was essential for us to be able to benchmark our performance over time so we could understand how we were improving and what was driving our successes. 3. Do you have the right tools to measure all your needs? At Lenovo we recognised the need for an online dashboard that would pull in all our social data as well as all our competitors’ data. This empowered us to make informed decisions, and track against the industry. As the global social analytics lead for Lenovo, I have to continually ask myself, “Am I supporting the business?” In an industry that is constantly changing, answering these questions has helped me formulate our measurement plan. WWW. MARK E TING-IN TE RAC TI VE . C OM

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