www.marketingmagazine.com.my
ISSUE #252 JUNE 2020
popculture
WEEKENDER
#StopHateforProfit
WEEKENDER 09
popculture
EDITOR'S NOTE
COVER STORY
Random thoughts as media emerges stronger post MCO
Brands have had enough with Facebook!
It is interesting to note that while media players have been complaining of financial ruin due to MCO, they are also hiring furiously like they know something we don’t...
More than 300 advertisers have joined the global chorus in a boycott against Facebook...
03 Latest on Star Media Group (SMG) has stuck to its refusal to reveal the culminating losses...
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ZUCKERBERG MUST GO This week, in light of a snowballing advertiser boycott Mark Zuckerberg blinked...
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3 Ways Marketers Can Reduce Risk in Agency Pitch Process Our industry has officially entered a new era, and the impact is...
MARKETING WEEKENDER is published by Sledgehammer Communications (M) Sdn Bhd 22B, Jalan Tun Mohd Fuad 1, Taman Tun Dr. Ismail 60000 Kuala Lumpur, Malaysia. Tel: 603-7726 2588 ham@adoimagazine.com. www.marketingmagazine.com.my © All Rights Reserved By: Sledgehammer Communications (M) Sdn Bhd (289967-W) No part of this magazine may be reproduced in any form without prior permission in writing from the publisher. While every effort has been made to ensure the accuracy of the information in this publication, the publisher assumes no responsibility for errors, omissions and/ or for any consequences of reliance upon information in this publication. The opinions expressed in this publication do not necessarily represent the views of the publisher or editor. Advertisements are the sole responsibility of the advertisers.
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EDITOR’S NOTE
Random thoughts as media emerges stronger post MCO
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it a day after bearing the cost of running it at a loss in recent years. Plus hundreds of millions lost in his other companies during the MCO may justify a new call on theSun. But hey, if GE15 is happening this year, he may delay this move. Too early to tell, as Parliament sits again on July 13 (the same day the Federal Court hears contempt proceedings against Malaysiakini and its editor-inchief Steven Gan over comments posted by readers). Good News: television players are back… RECORD HIGH VIEWING IN MARCH, TAPERS DOWN IN APRIL – MAY, BUT STILL HIGHER THAN PRE-MCO TV viewing at the beginning of June still higher than pre MCO even after relaxation of movement restrictions Channel Ratings from 1 Jan to 15 Jun 2020 (TVR)
21.1% 14.8% Copyright © 2020 The Nielsen Company (US), LLC. Confidential and proprietary. Do not distribute.
t is interesting to note that while media players have been complaining of financial ruin due to MCO, they are also hiring furiously like they know something we don’t. The new normal seems to be an alternate reality running on steroids. Radio resurgence? The podcast fever is unstoppable now. This trend is best suited to evangelise radio. With the growing attention deficit syndrome, Radio is perfect as it allows selective listening. And that is already quite a boon to advertisers. Personally, I believe Radio has been marginalised for too long. Utusan and Kosmo are on the verge of relaunching their titles – both print and online next month. Is there a snap election coming up? And what’s happening at theSun? Unconfirmed weather readings suggest their benevolent businessman owner may call
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May 2020
June 1-15 (Approaching the new normal)
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EXCLUSIVE
Latest on Star Media Group by THE HAMMER
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tar Media Group (SMG) has stuck to its refusal to reveal the culminating losses suffered by its video platform dimsum claiming it requires a ‘gestation period’ despite having chalked up losses of almost a RM100million in just four years. In a recent response to shareholders, SMG claimed dimsum as a “tech start up company like our OTT platforms requires long gestation, and losses so far is within the board’s expectation and the losses have been on a declining trend.” The term “Enterprise Value” pops to mind. However, a quick search at the Companies Commission of Malaysia (CCM) website reveals the financial losses made by SMG Entertainment Sdn Bhd, who operates dimsum, indicates otherwise. These financial results were filed by SMG and is in the public domain. One only need to pay
RM35 to carry out a search on these losses suffered by dimsum. The performance of dimsum is buried under “print and digital” in SMG’s annual financial results, making it hard for shareholders to sieve though the losses. But we carried out some simple investigations and found these details to share with the media and advertising fraternity…. SMG has claimed, in the reply, that “due to the sensitivity of the possible corporate or fund raising exercise, the financial data remains confidential at this point of time.” The reality is that there’s nothing confidential and anyone planning to invest in dimsum or to acquire it would also have done their own due diligence at the CCM. Banks wanting to provide loans would do the same to ensure proper information is obtained to carry out risk
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EXCLUSIVE
... Buying video content and to upload it for subscribers is hardly technological and digital. But I’ll let the definition by them pass... assessment. So it was unusual for SMG’s chief financial officer Sam Au to refuse to disclose proper information when asked by shareholders. The chairman of the AGM, Mr Chan Seng Fatt, also made the same claims of “sensitive information” when the losses of dimsum is hardly Official Secrets Act material. Dimsum is also not a tech company as suggested by
SMG as it is merely a video platform with little technology requirements. Buying video content and to upload it for subscribers is hardly technological and digital. But I’ll let the definition by them pass. It is an offence under Bursa Malaysia and Securities Commission’ rules to conceal due information to minority shareholders. Formal complaints can be made against the board of directors of SMG for this. According to market analysts, CGS-CIMB Research, SMG called for a briefing a few days ago to sell its vision of turning its digital ecosystem into a virtual marketplace to advertise and directly sell products. The report adds, “It seems the Star is throwing everything out there to see what sticks.” Fret not: media veteran James Selva has some promising news for us in our Letter to Editor (next page). Dimsum’s losses: 2016 - RM6.5 mil 2017 - RM22.5 mil 2018 - RM29.2 mil 2019 - RM24 mil 2020 - ???
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CRISIS IS A KNIFE. IT CUTS THROUGHS LAYERS OF CONFUSION. EXPOSES, TO THE CLEAN AIR, WHAT WAS ONCE COCOONED BY HABIT, ROUTINE, AND IGNORANCE. IT OPENS A WOUND, REVEALING THE BLOOD OF YOUR LIFE.
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Jack Cheng - Shanghai-born, Detroit-based author of critically acclaimed fiction for young readers
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PREJUDICE IS THE EMOTIONAL COMMITMENT TO IGNORANCE. Nathan Rutstein
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LETTER TO EDITOR
Dear Editor, Star’s traditional print revenue dragged the group into losses in 1Q20 after recording positive earnings in the past four quarters. Star is looking to optimize their base by focusing on commerce division as a way of leveraging their existing brand footprint. For dimsum, they are expecting the video streaming services to breakeven at EBITDA level in 2 years period. Although the print segment has been hit severely, management is confident that the physical newspaper will not be obsolete. Cheers. James Selva
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CRITIQUE
Shocking website angers Ken by cybersleuth Ken Pennington
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t is year 2020. Supposedly a visionary year for Malaysia, where in the 80s, we envisioned 2020 to be a year of flying cars. While flying cars did not come to fruition, we didn’t expect technology and digital platforms to explode in a way that it did this year. Now look at this website, created by MITA, Malaysian Inbound Tourism Association: https://www.mitaetravelfair. com/. What year do you think we are in? As we watch in aghast the poor visual language and absolutely haphazard user experience, we wonder when will some trade bodies catch up with the rest of us in the year of 2020. MITA has been around for over 16 years and is the Malaysia’s largest Inbound Tourism association, representing travel agents, tour operators, souvenirs shop retailers, bus operators, product operators and restaurants operators who handle more than
one million tourists annually and provides more than 35,000 jobs for Malaysians. Country branding is absolutely key in rebuilding trust for Malaysia, considering major shifts of events this year – not just to outsiders such as investors and tourists but also to its major stakeholders: Malaysians themselves. As marketers, a digital presence is extremely important. Hang on, let me correct that. A professional digital presence should be a do or die scenario. Lazy maketing makes us look bad. So I’d like to take MITA up for a challenge. Give me whatever budget you have and I’ll make sure the website looks like it belongs in 2020! Just email ham@adoimagazine. com if you are keen. Editor’s Note: BTW, Ken is a concerned reader and not in any way part of our organisation.
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NOTE TO EDITOR
Subject: 70 Rising Personalities On LinkedIn In Malaysia In 2020 This August 1, we are going to release the above article in our magazine, a spin-off of our 100 Most Inspirational Linkedin Icons In Malaysia You Should Follow In 2020, released back on May 1, 2020. After close to four months of work, I’d like to inform you that our internal committee members have voted you to be one of the 70. The regular efforts you’re making, the inspiring posts you’re doing and the engagement level you’re getting combined with the number of followers you own says it all. We noticed this, so kudos XXX. Let me tell you what will happen once we published this article this coming August 1, 2020. First, it will go viral. People will come and engage and many will share the article out. It will receive traffic of approximately 6,000 views or more per day, every day for the next 1.5 weeks. Most traffic will come from Malaysia and neighbouring ASEAN countries. It will receive no less than 150,000 impressions on the internet. You will enjoy a heavy influx of connection requests for a few days and it will gradually become consistent for the next few weeks too. Since a substantial number of our readers are regional PR agencies representing global brands, they may knock on your door for interviews for some mainstream publications as well. I know all these because we’ve experienced the same since we started this project. If you’re keen to have your image displayed and make your profile to stand out, please let us know in the form too. The fee is only US$50. A name that is clickable which readers can go to your LinkedIn account straightaway, will enjoy a greater chance of securing more profile views and new connection requests. To do this, we would need to put a backlink into your name. This feature, if you’re keen to have it as well, is priced at US$50 too. Again, kudos. It is not easy to be featured among the greatest and you’ve made it for 2020. This email was submitted to us by a reader enquiring if we knew about this matter. We are sharing this with everyone as fame awaits the fortunate.
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#StopHateforProfit
Brands have had enough with Facebook! More than 300 advertisers have joined the global chorus in a boycott against Facebook over what it allows on its platforms says the New York Times. BY THE HAMMER
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n a desperate war-footing pushback, frantic Facebook officials have been falling over themselves to contain this merciless tsunami of hate, anguish and frustration from advertisers who’s trust deficit with Facebook is now as wide as the Grand Canyon but it is not looking as majestic.
Even though Facebook said it would label potentially harmful or misleading posts left up for their news value, the organisers of the #StopHateforProfit campaign, which accuse Facebook of not doing enough to stop hate speech and disinformation, said the “small number of small changes” would not “make a dent in the problem”.
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#StopHateforProfit
“Facebook has a long history of allowing racist, violent and verifiably false content to run rampant on its platform.” They add, “We have been down this road before with Facebook. They have made apologies in the past. They have taken meagre steps after each catastrophe where their platform played a part. But this has to end now.”
A group of six organizations called on advertisers to pause their spending on the social media platform during the month of July. The groups the Anti-Defamation League, the NAACP, Sleeping Giants, Color of Change, Free Press and Common Sense - asked “large Facebook advertisers to show they will not support a company that puts profit over safety. Facebook has a long history of allowing racist, violent and verifiably false content to run rampant on its platform.” Elijah Harris, senior vice president of paid social at IPG
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#StopHateforProfit
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#StopHateforProfit
Mediabrands, in a LinkedIn post said it was “time to hold Facebook’s leadership team accountable … Let’s use our collective strength to bring them to task.” Carolyn Everson, VP of Facebook’s global business group, wrote, “We deeply respect any brand’s decision, and remain focused on the important work of removing hate speech
and providing critical voting information. Our conversations with marketers and civil rights organizations are about how, together, we can be a force for good.” Her memo reads, “I also really hope by now you know that we do not make policy changes tied to revenue pressure. We set our policies based on principles rather than business interests.”
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#StopHateforProfit
... Levi Strauss & Co also said it would be pausing advertising on Facebook and accused the social media firm of not going far enough... “I’m one of the people who feel like the trust has been broken,” Co-Chairman and Partner Jeff Goodby said in a CNBC interview, “I’m not sure what they’ll do, to tell you the truth. I’m optimistic that they’ll listen and do something about it, but experience has shown otherwise.” “As an industry, we talk to them all the time about this. You can’t ask advertisers to invest in this thing with content that comes from everywhere without some assurances that it will be safe for us. There are no assurances. Facebook doesn’t even pay attention to its own rules of the road.” David Jones, the founder of You & Mr. Jones and a founding member of Facebook’s
client council said he doesn’t feel Facebook is ignoring the advertisers. Levi Strauss & Co also said it would be pausing advertising on Facebook and accused the social media firm of not going far enough. Hershey’s says it will be cutting spending on Facebook and Instagram by a third for the rest of the year. Coca-Cola announced it will be pausing advertising on all social media platforms globally. while clarifying it was not joining the official boycott.
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#StopHateforProfit
The boycott is led by brands and not media agencies. Brands are standing up for themselves as this is a corporate reputation matter. In a Facebook post and town hall speech, founder and chief executive Mark Zuckerberg outlined steps to counter some forms of voter suppression, set a higher standard for hateful content in ads and promised more labelling around newsworthy posts, especially by politicians that may violate Facebook policies. He countered the trust issue, citing a study from the EU showing Facebook “acts faster and removes a greater percent of hate speech on our services than other major internet platforms, including YouTube and Twitter.” He added that AI systems and human review teams now remove 90% of identified hate speech before anyone reports it to Facebook. But as the boycott reaches new levels of seriousness, frantic Facebook officials huddled with media agencies to address concerns over its hate-speech moderation policies on the day marking one month of the advertisers boycott.
... as the boycott reaches new levels of seriousness, frantic Facebook officials huddled with media agencies to address concerns over its hate-speech moderation policies on the day marking one month of the advertisers boycott... The meeting, according to one report was to “their sell to agencies and clients that they’re on top of this and there’s nothing to worry about.” Campaign magazine said, Facebook executives mostly reiterated statements that had been announced publicly on Friday, after founder and chief executive Mark Zuckerberg scrambled into action shortly after Unilever, the world’s second-biggest advertiser, announced it would suspend social media advertising for the remainder of the year. In the meeting, Facebook repeated their claim that
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#StopHateforProfit
Facebook now removes 89% of hate speech with automated tools before anyone sees it, up from 23% from three years ago. However, according to one UK digital agency executive, “Facebook hasn’t done enough to move the dial and regain that advertiser trust. I think, for a lot of advertisers, they’re just looking at November, the US presidential election, and thinking ‘I don’t want anything to do with that’.” They have some of the best AI in the world for content analysis. But 11% is still a shit-ton of content [hate speech which is not picked up by automated tools before being reported by users and actioned].” Campaign also reported that, “In this current climate, no CMO is going to get beaten up by a CFO and say we’re going to stop spending on Facebook and shove that money back into their bottom line instead.” The other concern is “Facebook and Google have been
... 11% is still a shit-ton of hate speech which is not picked up by automated tools before being reported by users and actioned... very good at developing direct relationships with clients. Media agencies feel cut out of the loop.” And to think that at one time, we reported that Facebook were political watchdogs too.
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BOBHOFFMAN.COM
ZUCKERBERG MUST GO
BYÂ BOB HOFFMAN
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BOBHOFFMAN.COM
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his week, in light of a snowballing advertiser boycott Mark Zuckerberg blinked. He promised some illdefined reforms to Facebook’s idiotic, dangerous publishing policies. We don’t know exactly what changes FB will implement, but we do know one thing -- they’ll be minimal. Facebook has done serious, perhaps irreparable, damage to world ethics and stability. Here at blogweasel central, we’ve been calling for advertisers to get off their asses and stop the FB freight train of sleaze for years. Over two years ago, in an identically titled newsletter, I wrote that Zuckerberg had “shown himself to be utterly inadequate to handle the responsibilities of managing an organization with the power and influence of Facebook. Or even understanding what the responsibilities are.”
... Facebook has done serious, perhaps irreparable, damage to world ethics and stability. Here at blogweasel central, we’ve been calling for advertisers to get off their asses... “The absence of probity and maturity that Facebook has displayed has been baked into the company’s DNA by Zuckerberg’s arrogance, and will remain there as long as his vapid philosophies define their culture...’Move fast and break things,’...’Young people are just smarter’... These are the pronouncements of an infantile narcissist. You can draw a straight line from this nonsense to the current headlines.” “Facebook’s history of fabrication and deception is unprecedented and unacceptable. Even in the context of the tech industry -- an industry famous for its willingness to play fast and loose with ethics and
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BOBHOFFMAN.COM
... most pathetic of all are our “leaders.” Where have the 4As, the ANA and the IAB been in all of this? As usual, writing wretched press releases about how important it is to maintain the hideous privacy abuse practices that keep Facebook and its circle of creeps in business... integrity -- Zuckerberg is considered shady.” “He has zero credibility... Facebook’s initial statements about any issue always turn out to be bullshit. Truth is something that must be squeezed out of them.” Even this week, as they were bludgeoned into giving minimal concessions, they claimed they were not doing it out of pressure. According to The Wall Street Journal, “...a spokesman said the changes were a follow-up to Mr. Zuckerberg’s previous commitment to prepare for coming elections.” As usual, 100% pure bullshit. Strong Letter to Follow The ad industry has been
sitting on its hands for years enabling Facebook’s disgraceful policies. As I wrote in 2018... “...While Facebook is being demonized, let’s keep in mind who’s funding all this sordid activity -it’s the ad industry. It is the money we keep pouring into Facebook that makes all this sleaze possible. If we had an ounce of responsibility we would say ‘no more.’ But, of course, we don’t. We just hide behind Facebook’s skirts and let them take the hits.” We could have ended FB’s subversion of decency any time we wanted to. Now we’re all puffed up and righteous about pulling ads from FB for 30 days. We’re pathetic. Most Pathetic Of All As usual, most pathetic of all are our “leaders.” Where have the 4As, the ANA and the IAB been in all of this? As usual, writing wretched press releases about how important it is to maintain the hideous privacy abuse practices that keep Facebook and its circle of creeps in business. Here is a partial list of Facebook barbarities from last year.
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CREATIVE SHOWCASE
In each story there is a villain and right now two stand out from the rest, but there are more in the shadows. Category: Public interest Client: Greenpeace Peru
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PITCH MARKETING
3 Ways Marketers Can Reduce Risk in Agency Pitch Process By Greg Paull Co-founder and Principal, R3
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ur industry has officially entered a new era, and the impact is clearly visible. Brands are being called to take a stand, and sometimes, to take a side. They are becoming more discerning with their advertising spend under public scrutiny as people demand that business contribute to greater equality, transparency and security. Marketers have always judged consumers by what
brands they support and what they decide to buy. In turn, the integrity of marketers will now be evaluated by how they advertise and with whom they choose to work with. Will an agency be selected on creative output and digital savvy? Or will there be further investigation of agency values and equal opportunity? How much of this will matter when it comes to perception and a company’s bottom line?
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PITCH MARKETING
... Agencies have always invested in defining how they are different from one another. Aside from style of work, they have missions and values and work hard to develop distinct points of view that they hope will set them apart of the rest. This is important when selecting a partner... Pitching into a partnership Let’s not kid ourselves. The work matters. When Peloton unleashed its “dystopian, sexist” ad last Christmas, it lost them US$1.5bn in value. It took nine months for Pepsi to recover from the backlash of the now infamous “Kendall Jenner” ad, and the beverage company saw purchase consideration take a long downhill slide. That was before.
Before the global health crisis. Before a global recession. In times like these, such risks cannot be afforded by both brands and agencies. Agencies have always invested in defining how they are different from one another. Aside from style of work, they have missions and values and work hard to develop distinct points of view that they hope will set them apart of the rest. This is important when selecting a partner, but even more crucial is looking at how the work gets approved and made. This isn’t reality TV There is a reason why after a total 38 seasons, The Batchelor and The Bachelorette have such abysmal (low doubledigit) success rates when it comes to producing successful relationships: No one calculates the risks. Unlike reality television, the consequences of a bad partnerships for marketers are tangible and real. This is why pitch processes remain important. You’re not just in the business of buying ideas, but also aligning with an ethos, and agreeing on a way of working.
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PITCH MARKETING
Great creative work always stems from strong partnerships. Marketers with productive, longterm relationships with their agencies will attest that mutual understanding, trust and team spirit makes a huge difference in their day-to-day operations, as well as to overall brand success. Choosing an agency is never easy but having the ability to see each other clearly makes all the difference. 3 ways to reduce risks Here are three ways marketers can reduce risks as they go into the agency pitch process. 1. Addressing unconscious bias There’s a lot to be said about bias and prejudices. From Facebook algorithms to the type of data being fed into AI and workplace safety, if there’s one thing that keeps arising in conversation, it’s the fact that everyone sees the world through a particular shade of glass. Marketers who are seeking to reduce costs by bringing the pitch process in-house will have to be even more mindful of this. Clearly articulated criteria help,
... There’s a lot to be said about bias and prejudices. From Facebook algorithms to the type of data being fed into AI and workplace safety, if there’s one thing that keeps arising in conversation, it’s the fact that everyone sees the world through a particular shade of glass... but one needs to see beyond the case studies, awards and innovation plays. There is no better way to reduce instances of bias than bringing in an independent, objective view that can judge issues that impact the routine of daily work. 2. Determining an agency’s risk factor With fragile economies and weary consumers, it feels like the marketing industry is holding its breath. Having the knowledge
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PITCH MARKETING
... About 80% of marketers have some form of in-house agency. Teams might be as small as 2 or more than 50, but with advantages of ownership and increased speed, the direction towards building in-house capability... that a supplier can perform despite the volatility of today’s marketplace is important for any company. As the global health crisis has reshaped the dynamics and operations of the agency landscape, the agency you are familiar with might not be the same one you deal with today. Understanding the constraints experienced by each agency and how they might affect that agency’s ability to meet commitments is important for a sustainable working relationship. Having this information will not only help procurement teams discover savings opportunities,
it will also empower teams to support cost efficiency measures and have the assurance of reliability during uncertain times. 3. Involving in-house teams About 80% of marketers have some form of in-house agency. Teams might be as small as 2 or more than 50, but with advantages of ownership and increased speed, the direction towards building in-house capability is on the up. As most marketers have opted for a hybrid of in-house talent while outsourcing more specialized skills, ensuring that both inhoused and outsourced teams are able to work together is crucial. Preventing bad blood between teams should be high on a marketer’s list. Involving in-house talent in the decisionmaking process will help reduce potential friction and antagonistic feelings about being left out of the creative process. Greg Paull is principal and co-founder of R3 Worldwide, a global independent consultancy focused on driving transformation for marketers and their agencies. www.rthree.com
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