September/ October 2013 by Rider Dickerson

A Publication Powered by Rider Dickerson

Engaging Marketing Minds

Vol 3, Issue 5, September/October 2013

g n i r e b m n e o m s Re Madi ue n e Av

Whatâ&#x20AC;&#x2122;s happening in the world of advertising

INSIDE Building a Brand Based on Trust The End of Competitive Advantage The Way of the Word

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publisher ’s letter

The aura of advertising B

CONTENTS

ack in the late ’60s and early ’70s, Madison Avenue had an aura about it. It was a time when advertising was held in high regard, and ad agency personnel were as cool as the other side of the pillow. But if you let go of the coolness factor, the most compelling aspect was that sponsors actually asked people about their products. There were no ROI measurements, click rates or page views. They simply introduced something that resonated with their audience. Either it was cool like Joe Camel or relentless like Crest toothpaste. Either way, a relationship developed, and the product became part of our psyche.

Success depends on trust and building relationships that can be integrated across all of the channels we have today.

03 Publisher’s Letter The aura of advertising

04 The Inbox

Bill Barta

06 Remembering Madison Avenue How the advertising game has evolved since the “Mad Men” days

10 Modeling How to build a brand that’s predicated on trust

Sure, there are millions of TV channels, social networks, mobile devices and myriad other vehicles to connect to us, but the basic premise of capturing our attention and becoming part of our world still exists. Advertising must work. We all have heard the old adage that Dean Petrulakis “we know half of advertising works, we just don’t know which half.” However, if advertising were no longer relevant, you’d have to wonder why the greatest brands, i.e., Apple, Coca-Cola, etc., spend millions of dollars on it. As marketers, you understand that success depends on what the objective may be. Are you simply making people aware of you or are you trying to get people to part with their money? Either way, success depends on trust and building relationships that can be integrated across all of the channels we have today. That is what we continue to strive for with you. Our magazine is the cornerstone of an effort to connect more deeply with our audience. In turn, we hope that articles like this month’s cover story, “Remembering Madison Avenue,” truly resonate with you. Our second feature, “Modeling,” takes a closer look at the design of your business. As we have said in the past, design is critical and customizing your model to your respective markets, rather than forcing a model on the market, is the most prosperous path forward. As the summer winds down, we hope you will remember the power of advertising. In the meantime, we’ll continue to bring you the stories and ideas you can identify with. Warmest regards,

14 From Where I Sit The Stress Institute’s Kathleen Hall on the art of living mindfully

15 The Way of the Word A peek inside how marketers achieve their branding messages

Publisher

Bill Barta, President & CEO, Rider Dickerson

Managing Editor

Dean Petrulakis, Senior Vice President, Business Development, Rider Dickerson

Art Direction

Brent Cashman

Bill Barta President & CEO Rider Dickerson

Dean Petrulakis Senior Vice President Business Development Rider Dickerson

Printed on 100# Utopia 2 Dull Text

The

Inbox

The p pe percent erc rcen entt th en tthat hatt m mobile obile advertising will account for in all

ONLINE ADVERTISING

SPENDING

by 2018, according to the “Forrester Research Mobile Advertising Forecast – 2013 to 2018 (U.S.)” study. The trend will be driven by surging tablet and smartphone ownership, more intense usage of mobile devices relative to desktop and laptop computers, and an increase in available on-screen real estate as users embrace tablets rather than smartphones.

1.8 million words

That’s the value of one minute of video, according to Dr. James McQuivey of Forrester Research. In website speak, that’s 3,600 typical web pages. How long does it take to write an average web page? One hour. That translates into 150 days of writing to achieve the impact of a one-minute video.

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Night

So, what keeps CMOs tossing and turning all night long? According to a recent study by Korn/ Ferry International, 52 percent say customer engagement is the culprit, followed by taking advantage of digital (29 percent), acquiring digital-savvy talent (11 percent) and dealing with budgetary issues (9 percent). Within the category of customer engagement, top CMO concerns include creating sustainable and engaging customer relationships (30 percent), and providing an effective customer experience (22 percent).

The why and what of content marketing

BOOK REC

UP ALL

The End of Competitive Advantage: How to Keep Your Strategy Moving as Fast as Your Business By Rita Gunther McGrath

Are you trapped in an uncompetitive business? It’s an honest question today. If you answered yes, there’s a chance the strategies that used to work for you don’t anymore. That’s because epic changes in business have caused a major gap between traditional approaches to strategy and the way the real world works today. In short, your strategy may be stuck. Most leaders use frameworks that were designed for a different era of business and based on a single dominant idea – that the purpose of strategy is to achieve a sustainable competitive advantage. Once the premise on which all strategies were built, this idea is increasingly irrelevant. Columbia Business School professor and globally recognized strategy expert Rita Gunther McGrath argues that it’s time to go beyond the concept of sustainable competitive advantage. She says organizations must forge a new path to winning: capturing opportunities fast, exploiting them decisively and moving on before they are exhausted. Based on updated assumptions about how the world works, McGrath shows how some of the world’s most successful companies – Fujifilm, Yahoo! Japan, Infosys, among others – use this method to compete and win today. The End of Competitive Advantage could be your new playbook for strategy.

o, you know content marketing is the latest and greatest way to reach your customers. But do you know what they’re looking for? Thanks to the CMO Council’s “Better Lead Yield in the Content Marketing Field” study, you can get a sense of how to approach your strategy. For example, the study found B2B buyers are turned off by self-serving, irrelevant, over-hyped and overly technical content. It also showed that more buyers are migrating toward peer-based communities and new sources of trusted, relevant, and credible content and conversation. The characteristics most valued in B2B content include breadth and depth of information (47 percent), ease of access, understanding, readability (44 percent), and originality of thinking and ideas (39 percent). printForum • September/October 2013

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Advertising is based on one thing: happiness. And do you know what happiness is? Happiness is the smell of a new car. It's freedom w from fear. It's a billboard on the side of a road that screams with reassurance that whatever you're doing is OK. You are OK. – Don Draper from Mad Men

he NFL season has just kicked off, but already advertisers are gearing up for Super Bowl XLVIII, the premier showcase for the ad industry. There’s usually as much hype about the commercials airing during the Super Bowl than there is about the pigskin rivalry on the gridiron. In 2013, numerous companies spent $4 million each for a 30-second spot, and in m the Mad Men tradition, esteemed advertising executives devoted countless hours creating exec commercials that would engage and be recom membered by the 108 million viewers. Doritos mem was this year’s creative MVP for the second year running with their “Goat 4 Sale” ad, winning both the most-liked and most-memorable honors, hono according to Nielsen. The ad that captured the hearts and minds of viewers didn’t originate at an iconic Madison vi Avenue agency…or any agency at all for that Aven matter. It was the whim of a couple of creative matt young guns at a small Atlanta-based producyoun tion company, Pogo Pictures. Directors Ben Callner and Steve Colby co-wrote the spot that chronicles the short-lived friendship between a chro Doritos-loving man and his Doritos-loving goat, Dori Moose. Inspired by the antics of Colby’s goats, Mo oo the celebrated commercial was an entry in Dorith c tos’ annual “Crash the Super Bowl” contest.

Animals, babies and cleavage Ani “Ste came in one day and said something like, “Steve ‘You know, my goats’ eating food and crunching

is really funny.’ And then he just left,” Callner recalls. “Steve is a quirky guy – heck, he has goats and he lives in the city – so when he said this, I didn’t think too much of it. But then he said it again, and again, and finally followed it with, ‘We should make a Doritos commercial.’ And we started pulling it together.” Callner jokes that the success of the ad was based on a tried-and-true formula. “It’s an old cliché – feature an animal, a baby or cleavage. We had a goat, so we went with a goat.” Callner says they actually spent time exploring what was successful in the past and ultimately decided to use the 30 seconds to tell a funny story. “The way to engage viewers is to entertain them. A goat eating chips is hilarious. And that scream – who knew goats could scream like that.” Crowd sourcing ads with a contest is becoming a successful advertising formula for Doritos. Since 2007, a Doritos ad has landed in the top five favorite ads in USA Today’s AdMeter. The entries are made by users, and fans select the finalists with their votes, creating a lot of pre-Super Bowl buzz and game-day media hype. “All the tweeting and

How the advertising game has evolved since the “Mad Men” days By Lorrie Bryan

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Remembering Madison Avenue lobbying for votes in social media as well as print and broadcast media was pretty intense. I felt like I was campaigning for political office,” says Callner, whose commercial was one of five contest finalists. “Goat 4 Sale” received national media attention from CNN, Fox, NBC, CBS and, not surprisingly, Doritos was the most mentioned brand in the social media sphere during the game as goat fever raged.

Harwood-Matthews notes that with expanding technology, the advertising industry has evolved dramatically since the “Mad Men” days chronicled and glamorized in AMC’s awardwinning dramatic series that spotlights Sterling Cooper, a 1960s era Madison Avenue advertising agency led by Don Draper’s creative genius. “The business of advertising is still all about people and creativity at its heart, but it is how we make brands live in the world that counts,

“We can know huge trends, but never need to really understand them. It’s the same world; it’s just loaded, dripping with new data and information.” – Robert Harwood-Matthews, President, TBWA\Chiat\Day New York

Screen-based, digital and interactive Callner predicts that crowd sourcing ads will become even more popular in the future, and leading Madison Avenue advertising executives concur. Robert Harwood-Matthews, president of TBWA\Chiat\Day New York, a Top-10 worldwide advertising agency, says that interactivity is key in advertising’s future. “It’s pretty simple. I’m not the first to say it but you can drill the future of advertising down to three thoughts: screen-based, digital and interactivity. The future will see agencies more adept in user interface, in collecting and analyzing data, in seeing the internet in everything – literally – and in playing and experimenting with how brands live in the world.”

more so now than ever,” he says. “That means we’re all adapting to better use of technology – to reach deeper into people’s lives, and to capture the data that comes out of it. Humans can be unpredictable, but we also share values and follow societal bonds. The ‘Mad Men’ knew this and just played to shared values and society at large. My data teams now talk about correlation and causality; we’ve simply got more detail on the when, the where and the why than the ‘Mad Men’ ever could have imagined. We can see the unpredictability and play with it. We can know huge trends, but never need to really understand them. It’s the same world; it’s just loaded, dripping with new data and information.”

And while the advertising industry has changed immeasurably in this way, HarwoodMatthews contends that in some ways it hasn’t changed at all. “That’s why we look at ‘Mad Men’ and have empathy. Script writers know that we look in and see a cartoon version of our own lives, whatever the workplace. We see the unreasonable demands, the illicit affairs, the politics and we recline on our sofas with a whiskey and smile knowingly to ourselves, just like Don would.”

Animals, shoes and…farmers? Another new advertising model fueled by increased technology and subsequent hypercommunication is cultural movement marketing. “Something significant has changed in our global culture over the past couple of years. The net result is that we, as business leaders, are now dealing with a populace that is more socially engaged, more aware of what’s going on in the world, and hungrier to get involved and be heard on various issues,” says Scott Goodson, co-founder and CEO of Strawberryfrog, one of the leading micro agency networks in the world and the first cultural movement agency. In the “Mad Men” era, revolution was associated with the counter culture and generally not considered the basis of a sound marketing strategy. But Goodson contends that smart businesses today find a way to connect with that passion and activism. “If you fail to respond to this shift in the culture, you run the risk of being out of step with your customers. Your company could end up looking like a ‘status quo’ brand in a revolutionary world.”

LESSONS FROM ADVERTISING’S INNOVATORS The business of advertising is still all about people and creativity at its heart, but it is how we make brands live in the world that counts, more so now than ever. That means we’re all adapting to better use technology, to reach deeper into people’s lives, and to capture the data that comes out of it. – Robert Harwood-Matthews, president of TBWA\Chiat\Day New York

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Do not build your campaign around your product. Rather understand your brand purpose or brand benefit, and then align this to an idea on the rise in culture. Brands must engage with culture. This is the future. – Scott Goodson, CEO of Strawberryfrog and author of “Uprising”

It’s all about great content. Entertain and engage your audience with a good story. Create content that you believe in. – Ben Callner, director at Pogo Pictures and director of Doritos “Goat 4 Sale”

In the “Mad Men” era, revolution was associated with the counter culture and generally not considered the basis of a sound marketing strategy.

Goodson pioneered the movement-marketing model in 1999, working for brands such as Smart Car and IKEA. As he worked on his book about movement marketing, “Uprising,” he encountered everything from a pet food company that launched an animal welfare initiative (Pedigree) to a shoemaker that began a worldwide movement to put shoes on kids’ feet (Toms). “In each case, a company rallied people around an idea that mattered, an idea on the rise in culture, enabling customers to become activists. In the process, the company demonstrated that it was engaged in people’s lives and cared about something more than just profits.” Goodson contends that cultural movement marketing is the future of advertising. “Do not build your campaign around your product. Rather understand your brand purpose or brand benefit, and then align this to an idea on the rise in culture. Brands must engage with culture.” Cultural movement marketing was a successful strategy for another popular Super Bowl XLVII commercial. Do you remember the much-discussed Dodge Ram “Farmer” commercial that featured a voiceover tribute by the late and legendary radio icon Paul Harvey? The spot exalted farm life in America and reminded viewers of how rural values – perseverance and hard work – are the foundation of this great nation. Members of the growing anti-agribusiness movement loved it and created their own version spoofing factory farms. Authentic and wannabe farmers apparently loved it as well. Online consideration of the Ram brand and trucks leaped on Super Bowl evening and for days. The brand also donated $1 million to the National FFA Organization (formerly the Future Farmers of America) based on YouTube viewing numbers. Chrysler CMO Olivier Francois says that the “Farmer” spot and follow-up actions by Chrysler to mark what it calls “the year of the farmer” are persuading Ford, GM, Toyota and Nissan customers to consider Ram trucks too. Ram truck sales for July were up 31 percent over last July and up 24 percent for the year. It was the best July since 2007. Correlation or causality? Either way, it appears that The Richards Group, the Dallas-based agency that created the commercial, scored with this marketing strategy. Super Bowl XLVIII in February ’14 likely will showcase new innovations and changes in the advertising industry. And as Don Draper says, “Change is neither good nor bad…it simply is.” printForum • September/October 2013

Mo de ling

How tha tâ&#x20AC;&#x2122;s to bui pre ld a d icat b By ed rand Mic on ha el J trus . Pa t ller ino

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t’s an intriguingly fascinating exercise, this practice of creating a brand people want to associate themselves with. Nobody knows that better than business model expert and Strategyzer.com co-founder Alex Osterwalder, whose book, “Business Model Generation,” serves as a definitive guide for visionaries, game changers and challengers striving to defy outmoded business models and design tomorrow’s next great enterprise. But what do your customers really want? And how can you continue to get them to trust your brand? Osterwalder’s answer is simple: create value for your customers, your organization and society as a whole. Easy, right? “It’s all about the search for the perfect business model,” Osterwalder says. “That’s what business is about. That’s what entrepreneurship is about.” To help entrepreneurial businesses in their quest, Osterwalder created what he calls a Business Model Canvas, a roadmap, if you will, on the journey to success. Within his model is the Value Proposition Canvas, which he says involves “getting out of the building” to find what your customers really want. “The choice then depends on which customer segment you can build the most scalable – Alex Osterwalder, Co-founder and and profitable business model Business Model Expert, Strategyzer.com around. It’s all about using tools.” Once your business model is established, you can work to build trust in your brand. By continuously delivering on that brand promise, Osterwalder says you can start laying down your foundation for success. “If you relentlessly build great value propositions, your customers will believe you. Learn to use your tools like a surgeon does. Surgeons go to medical school to learn the anatomy of the body, and then they learn how to use tools to fix the body. Their learning never stops. It’s only in business that we think there is a quick fix – a magic formula. We think we can do heart surgery with a Swiss Army knife. Consumers go where they see the most value at the best price.” Chris Malone’s take is similar: He believes the perfect business model is one that generates growth inexpensively by exceeding customer expectations to building strong customer relationships and loyalty that generate proactive new business referrals. Over the years, the marketing veteran for the likes of Choice Hotels, ARAMARK, Coca-Cola, the National Basketball Association (NBA) and Procter & Gamble has witnessed firsthand how successful business models beget trust. “One of the most valuable aspects of trust-based customer relationships is that they can be expanded,” says Malone, who today is chief advisory officer of The Relational Capital Group and author of the “The Human Brand: How We Relate to People, Products, and Companies.”

“If you relentlessly build great value propositions, your customers will believe you … It’s only in business that we think there is a quick fix – a magic formula.”

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Modeling Malone says businesses that operate with this model, such as Zappos and Lululemon, are able to charge healthy prices for their products and services, while spending little on marketing or advertising. “Their growth is more stable and profitable because it’s driven by customer trust, loyalty and advocacy.” But can every customer be loyal to every brand’s product and/or services? “No,” Malone says, “but the vast majority have at least a few needs that are important enough that they’d prefer to have a single, trusted supplier. The key is taking the time to understand where your product or service falls in each customers’ priorities, and then focusing your efforts serving the needs of those with whom you can build a lasting relationship. Transactions can be generated with low prices, but lasting relationships require trust between two willing participants.” Of course, Malone is quick to point out that the basic psychology of human trust and loyalty has not changed for thousands of years, nor will it anytime soon. “In this regard, we can consider the warmth and competence framework a compass in the sea of technology-driven change that surrounds us. By aligning your efforts with your customers’ warmth and competence expectations, you will always be able to generate trust and loyalty.”

“The key is taking the time to understand where your product or service falls in each customers’ priorities, and then focusing your efforts serving the needs of those with whom you can build a lasting relationship.” – Chris Malone, Chief Advisory Officer, The Relational Capital Group

Talking the talk Marketing experts say the best business models are those designed to overcome the challenge of selling global brands across multiple channels to increasingly segmented audiences – audiences that have more brand messages, on more platforms, than ever before competing for their attention. The best businesses understand that it’s not about messages or changing the way people think, but driving true behavioral change. Mitch Kanner doesn’t believe that influence is endorsement. Kanner, who once was voted No. 5 in advertising by AdAge magazine, has served as a connection point between entertainment, consumer brands, advertising agencies and creative talent for two decades. He says today’s consumers understand that just because a celebrity talks about a brand doesn’t mean there is a real relationship there. “Creating influence is about demonstrating authenticity, and that comes from creating partnerships where collaboration tangibly demonstrates value for both parties, where both sides seem to have ‘skin in the game,’” says Kanner, who today is CEO of 2 Degrees, an influencer

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engagement firm in Hollywood, Calif. “What we focus on for our clients is connecting their value proposition with like-minded influencers, and then work with them to create new ideas, whether that be business opportunities, marketing initiatives or content ideas. As an example, Kanner cites the partnership between pop icon Jay Z and Samsung. With a shared desire to create the “next big thing” in popular culture, they created a new approach to music distribution that celebrated Jay Z’s vision and Samsung’s innovation leadership as the p platform. Samsung’s partnership g p p with Jay Z focused on the fans getting free, unique and early access to his latest release, “Magna na Carta Holy Grail.” “Samsung ung enabled Jay Z to connect with his fans ns in an unprecedented way,” Kanner says. s. “It was authentic, and that’s the only way influence can really work.” Kanner says that consumers’ influencers uencers always change – it’ss human nature.

Today, more than ever they are exposed to new things and are inspired to explore the many new frames of reference they come in contact with. “For brands, it’s a constant learning journey to stay with the interests and explorations of their consumers,” Kanner says. “Active listening is paramount. Of course, this is with consumers, but it is about engaging the influencers of pop culture as a means of understanding and delivering on consumer needs. If you understand who consumers’ influencers are and the trends they set, you’ll understand what consumers will ultimatelyy desire. It’s a forward-lookingg process, p , and the marketer that stays ahead of the trend will be best suited to anticipate when and why consumers might deviate from their current influencer or set of influencers.”

Branding and financial expert Ben Katz, CEO of prepaid Visa card company CARD.com, says if all fails, there is one formula that works best. “Over-deliver on your promises. Never, ever communicate in a non-transparent way. If you make a mistake, which you will, raise a hand and make amends immediately.”

Defining the perfect business model When it comes to creating the perfect business model, the best is one that not only understands the changing needs of today’s customers, but continually provides goods and/or services that exceed their expectations. Research shows that customers stay loyal to a brand when they are delighted with its offering – not just when they are satisfied. Customers are satisfied when brands deliver what’s promised. They are delighted when the brand delivers more than what’s promised and exceeds expectations. “Final customers are those who find value in your proposition,” says Jay Mulki, associate professor of marketing at the D’Amore-McKim

“If y o wh u und influ o co erst the ence nsum and e tr r you ends s are ars’ wh ’ll un they nd a ’ll d ultimt cons ersta set, ate ume nd ly d rs w –M esir ill itch Kan e.” ner, CE

School of Businesss at Northeastern University ersity in Boston. “Customers mers find value only when en they are convinced that suppliers ers have their best interest in mind, and nd provide them with goods and services vices that are tailored to their needss now and in the long term.” So, how does a brand create trust? Mulki says marketingg is based on serving the mutual interest of the customer and the brand. “The shift to relationship-based marketing requires mutual trust between sellers and buyers. Trust-based relationships depend on understanding customers’ needs and wants, solving customer problems, providing opportunities and adding value to customers’ business over a long period.” Mulki says trust consists of both cognitive and affective trust. Cognitive trust is based on a brand’s ability, skills, knowledgebase and expertise. This kind of trust can be developed quickly. Affective trust is based on dependability, reliability, candor and compatibility. This

O, 2

Deg rees

kind of trust takes time to develop after a series of interactions. In this set up, relationships are built on shared value and salespeople. Brands form partnerships with customers to provide the right solutions. The best formula is to be “customercentric.” “This formula keeps customer interest at the center and develops strategies and actions to ensure customer satisfaction and growth,” Mulki says. “Customercentric organizations focus on long-term relationships that focus on mutual benefits and growth. Customer-oriented organizations are known for their laser-like focus on customer needs. This focus is organizationwide, and not just in sales or marketing.” printForum • September/October 2013

Q&A

From Where I Sit... The Stress Institute’s Kathleen Hall on the art of living mindfully

r. Kathleen Hall knows the impact stress has on our daily endeavors. As founder and CEO of The Stress Institute and Mindful Living Network, she has had a front row seat to just how much havoc it can wreak on every thought, every word and every action we take. Today, the internationally recognized ambassador for mindful living provides individuals, corporations and organizations with the tools they need to create more mentally and physically balanced lifestyles. What role does stress play in our lives? Stress affects every facet of our lives, physical, psychological and our society. It creates enormous costs to individuals, families, all government agencies and corporations. Most people experience high stress levels because of their personal finances or because of the global financial challenges we’re facing today. Too many people are just overextended.

Define living mindfully. After years of working with individuals and corporations, I discovered a relationship between not living mindfully and increasing levels of

Employees want to work for a mindful company – one that embodies work balance, fairness, healthcare, and adequate time off for vacation and unforeseen critical events. Mindful companies create an inspiring and healthy work environment for their employees.

Give us a couple tenants to living mindfully every day. The first would be a reverent respect and a greater awareness for every living creature. This is the core of mindful living. We are interdependent with every living thing, and therefore, every thing we say or do has a cause and effect. [Another] way is mindful listening. Most of us live so fast these days that we hear others but we do not really listen. Mindful listening is when you stop; look deeply into another person’s eyes, focus on them, and listen to every word, body movement and tone with an open and aware heart. This lets them know just how valued they are.

Mindful living is the awareness that every thought, word and action affects you, society and the environment. stress. Most of us are overbooked, overworked and overwhelmed. Simply finding a quiet moment seems almost impossible these days. Mindful living is the awareness that every thought, word and action affects you, society and the environment. As you practice mindful living, you realize your stress level is a product of your awareness, perceptions and choices. Stress is a symptom of not living a mindful life.

How do we alleviate stress in the work environment? You can create a company that resembles the characteristics of a healthy family.

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Can we really live stress free? No living thing can live stress free. Stress is a biological feature of life. Every living thing expands and contracts to survive, which means we experience stress. But stress can be a great source of information – one that tells you what experiences negatively affect your life. The way to live a life with less stress is to either change your perception of your stress or remove the source from your life.

Before You Go

The way of the word A peek inside how marketers achieve their branding messages What’s the best way to reach today’s consumers with your marketing message? A recent survey by global newspaper MailOnline asked the world’s leading marketers and agencies how they get their brands’ stories in front of all those prospective clients. Here’s a look at how they do it:

Video

Branded content, social media and search

Mobile

Display advertising

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