Archive for January, 2009

No to Cutting Budgets, Yes to Investing Wisely

30
Jan
09

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By anne BROWAEYS [FullSIX Paris]
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The crisis we’re facing is radically different from the previous ones for Marketing and Communication Directors, not only because of its origins and the impact it has on consumer behaviours, but also, and more importantly, because this is the first recession following the advent of the digital revolution.

In terms of marketing and communications, the digital revolution is not only linked to the advent of the Web and other digital levers, but to a drastic change in consumers’ behaviours and on how brands act.

Consumers today have more choice, are exposed to more media channels, access to more sources of information, more transparency, easier ways of managing their choices and, as a result, their purchase decisions, causing strong behavioural fragmentation.

On the flip side, advertisers have a new ability to measure performance, build agile and flexible devices that evolve based on results measured in short cycles. This new piloting ability came about at the same time as digital media and is currently being applied to almost all communication channels.

These new consumer behaviours and advertising channels open an unexpected scenario for recession marketing strategies.
In the past, the advertising budget would have been one of the first to be cut, as soon as the Marketing Director couldn’t justify its impact on sales to the CFO. Today, Marketing and Communication Directors that apply integrated and innovative plans are in a stronger position and find it easier to justify their budgets’ importance, especially in time of recession. Crisis periods are like up-hill cycling races: they take commitment and hard work, but getting to the top forges the winner. The ability to manage investments on the basis of measured performances is the best way to win in an unsteady market, in the presence of demanding, untrustworthy consumers with fragmented behaviours.

In other words, the digital revolution created the solutions for survival and growth in times of crisis. 2008 sees the web as the first and most efficient solution to inform, reassure, attract, convince and retain consumers. As soon as they turn towards the web for product comparisons and analysis and to review what other consumers think, Internet-exploitation will become the unavoidable factor of recession marketing strategies.

This crisis offers advertisers the opportunity to extend their digital approach to all their communication activities, whatever the channel or the contact point. Setting clear KPIs and measurement results in short cycles is neither a utopia, nor a short-term approach; it’s an unavoidable solution to face today’s recession.

Everybody will face hard times, but those who face the crisis with tested tools to manage ROI will have more options than just cutting off their marketing budgets or waiting for better times. In this crisis, Digital makes the difference.

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Anne Browaeys – FullSIX France General Manager
Having first experienced marketing in the telecom field and the automotive industry (in Equant and Ford), Anne joined FullSIX in 1998 to implement web and mobile interactive strategies for BTC clients. She swiftly extended her scope of activity, by undertaking FullSIX’s expansion of start-up companies (for example, eBay), and by developing FullSIX’s CRM offer for big clients, such as L'Oreal and Whirlpool. At the age of 32, Anne Browaeys became General Manager of FullSIX France, in charge of the Agency’s overall strategy, of Hyper-Marketing and viral marketing related themes, as well as of the international evolution of the Agency.

Main photo: © varf

Facing a Crisis of Trust with Honesty

29
Jan
09

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By fredc
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This economic crisis is above all a crisis of trust because consumers have realized that their dreams of property ownership and prosperity are no longer achievable. Their belief in their own purchasing power has disappeared with the failure of the financial system and they can see that the rich have become richer by leading their companies, employees and clients to ruin. They don’t understand how they can put their trust in institutions that can’t even trust each other.

This attitude, justified or not, is the new reality for consumers. Mistrust replaces trust and complex messaging that is not understood becomes a risk.

This mistrust, combined with consumers’ low purchasing power, becomes a key issue for the brands that justify their existence – and their price premium – by the dreams that they inspire. Scepticism towards advertising, evident among the new generation of consumers before the crisis, will now accelerate and spread.

Confidence is reducing in parallel with a new ease of accessibility to other consumers’ opinions, which is now considered to be more credible than brand communication. In many markets, the Internet has become the principal tool for information and pre-purchase decision-making. Consumers collect, compare and sort from many different sources, including other consumers, and initial studies show that the crisis will increase this phenomenon.

The first concrete implication for brands is a need to create products with real added value and not unnecessary and superficial innovations. Then, they need to change the way they communicate and interact with their customers. There is a real need to return to plain, simple messaging and more factual, complete and transparent information. Gone are the days of pompous and meaningless slogans: studies show that a brand website is more credible than a 30-second TVC and competes favourably with opinions expressed by other consumers. Finally, brands must live up to their word and deliver on their promises.

Brands must build platforms for honest communication, integrating all the sources of information that consumers access and trust, giving plenty of space for dialogue and direct interaction. Priority should be given to convincing the most influential consumers in their market by giving them the necessary tools to speak personally and positively to their real or virtual network. It is the only way to give coherence, pertinence and credibility to what a consumer sees and hears in relation to a brand.

The brands that will win in this crisis are the brands that keep or win-back the trust of the consumer. Rather than trying to be a ‘Lovemark’, brands should simply strive to be a ‘Truemark’ – authentic and transparent.

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Frédéric Colas - CEO SixandCo Europe
Frédéric Colas spent 8 years at Procter & Gamble, where he was European director of Interactive Marketing, a department he created both in the USA and in Europe. As such, he was one of FullSIX’s first clients. He joined the agency in 2001 as a Partner and, starting in 2002, he developed the Hyper-marketing approach, which made FullSIX the first French agency in Integrated Marketing. In 2004 he was appointed General Manager of FullSIX UK and in 2005 he became CEO of SixandCo, an international network with offices in France, England, Germany and Portugal and over 120 employees. Over the years Frédéric has acquired a unique experience in integrated online and offline marketing. Acknowledged as a true innovator in marketing in the last 16 years, he has been listed amongst the top 12 “world media innovators "by Advertising Age magazine in 1999.

Main photo: © Jarr Geerligs

Environmental Crisis and the End of Socio-Professional Categories (SPC)

26
Jan
09

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By anne-france ALLALI [OTO Research]
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One of the most acknowledged effects of the digital revolution is the fragmentation of consumer behavior. The ease of access to information, together with the multiplication of offers and distribution channels, and the ability to compare prices, means that consumers have now become real experts in managing their spending priorities.

This means that these same consumers may fall within the ‘big spenders’ segment for some categories and in the “low cost” profile for others. It’s common these days for consumers to buy a low cost flight for a weekend in a luxury hotel or to park their BMW in a supermarket car park. This individual purchasing power drives market polarization and results in an uncomfortable position for products and services that fall in the “middle market” segment. Mc Kinsey analyzed this phenomenon in 2005 in his study “The Vanishing Middle Market” – without linking it to digital media at the time.

While consumers’ purchasing power is under pressure and a worldwide recession looms, this phenomenon amplifies. The difficulty for Marketing Directors who attempt to tackle the trend with tools and concepts derived from traditional marketing, lies in the unforeseeable and unpredictable nature of this phenomenon.

This fragmentation of behaviors signifies the end of SPC as it currently stands. As soon as a consumer can be categorized as both an SPC+ within one category and as an SPC- in another, it becomes clear that the notion of “SPC” is obsolete.

A more accurate cluster or consumer-based approach should have the upper hand, with the aim of understanding consumers’ business potential per category instead of a generic transversal view.

This crisis raises strategic questions for all brands historically positioned on the basis of best “quality/price” ratio without competing in either the “aspirational” or the “best price” territories. The answer is not necessarily to revisit the offer or pricing structure, but rather to focus on a more accurate consumer understanding. This consists of better clustering, targeting more specific consumer groups and offering of the right product to the right person.

For some consumers, a “middle-weight” offer could either represent a “cheap” or an “expensive” deal, so the main challenge is to exit the concept of being “average”. To put this into perspective, digital marketing can play a key role thanks to its unique ability to deliver exactly the right message, at the right moment, to the right consumer. This is the new factor of the upcoming recession: thanks to the massive and well-defined exploitation of digital, advertisers have at their disposal an efficient solution as an alternative to cutting budgets and crossing their fingers that the decision to do so is the right one to make.

This trust-related crisis will touch consumers across all categories and encourage them to pay more careful attention to their expenses, creating an even stronger behavioral and attitudinal polarization. Marketing budgets in times of crisis can survive (and even grow), but only if each dollar invested is justified. Without a doubt, every dollar invested in traditional SPC clustering will be lost.

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Anne France ALLALI - General Manager Deputy, OTO Research
After 8 years at Secodip and Taylor Nelson Sofres, Anne-France Allali (ESC) entered in 2000 Millward Brown France as client account manager, where she was in charge of many clients' budgets, such as Unilever, Pepsi, ING, Kodak, Club Med. In 2002, she moved to the Italian Branch of the research institute, where she was appointed, successively, Business Development Director, Account Manager and Business Unit Manager.
Anne France joined OTO Research in 2007 as General Manager Deputy, where she is in charge of client management and development as well as of the institute’s R&D. In particular, she participated to the creation of new marketing research tools, such as ISARA Engagement Measurement tool to support marketing teams in optimizing their client relationship strategies.

Main photo: © Apolaine

Introducing our New Recession-oriented Series: “Crisis Management Handbook for the Marketing Director”, or How to Beat the Recession Monster

23
Jan
09

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By marco TINELLI [FullSIX Group]
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There are countless alerts about the economic hardships nowadays. The current financial crisis affects everything and recession is here. Consumption and growth are stagnant, advertisers are pessimistic, the media are scaremongering, and agencies are puzzled.

However, from a more objective perspective, it is clear that this crisis is different from previous ones, as it is the first one that Marketing and Communication Managers will have to face following the digital revolution.

The evolution of new media in recent years has changed the marketing and communication world considerably, not only because the Internet has become an essential strategy tool, but because digital has changed consumer behaviours and has demonstrated that it is now possible to run more intelligent, creative and measurable marketing campaigns.

Performance measurement and dynamic campaign management (based on results per cluster or per individual), is the new benchmark of quality marketing. Performance-based advertising and KPI-based compensation have become addictive for advertisers that have tried them, making it difficult for them to understand why these methods aren’t possible across all their marketing initiatives.

This new era of measurability and performance positions marketing as a credible and reliable investment once again; a rationale that Marketing Directors will strongly need to highlight when their CFOs discuss cut-backs. Rather than stopping marketing investments completely, the focus should be on those initiatives that are proven to have a positive effect on business results.

This approach works not only online, but across all marketing vehicles.

We live in an era of customization and of real-time production – from large-scale retailers to factories. This approach has proven successful, and the means are there, so why is the marketing industry unable to react in the same way?

We are able to accurately correlate the relation between investments per channel and client acquisition, between a website’s audience and in-store sales. The current crisis gives us the opportunity to move the industry forward. The British would say that “need is the mother of invention” and while the need is there, there’s actually very little to invent. It is sufficient to simply apply the existing tools and methodologies at our disposal and launch a predictive and manageable performance-driven marketing approach.

Digital marketing has changed the scope of measurement and reactivity opportunities and the current economic environment will ensure that those who know how to apply them both on and offline, in an integrated manner, will be capable of driving and optimizing their investments and results successfully.

Another interesting saying is “if you can’t measure it, you can’t manage it”. In marketing today, within the context of the crisis, this means that if it cannot be measured, it simply shouldn’t be considered.

On Monday, we will publish the first article from our new series “Crisis management handbook for the Marketing Director”: a compilation of posts written by employees of the FullSIX Group around the world, giving strategic, creative and tactical advice (along with examples and case studies) for dealing with the upcoming hardships, backed up with proven methodologies and concrete “tried and tested” approaches.

Recession periods move boundaries and create new leaders. We strongly believe that, whatever the magnitude of the crisis, this will be an opportunity for numerous advertisers to accelerate their adoption of alternative marketing and communication strategies. The market is going to witness the first crisis of the Digital Age but those who adopt the new rules and opportunities will have the chance to emerge as winners.

To increase your chances to be one of them, subscribe to TheTrendwatch.com newsletter to get our new articles sent directly to your email inbox, or add our RSS feed to your favorite reader (Firefox, Google, Netvibes, NetNewsWire…).

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Marco TINELLI - CEO, FullSIX International. Marco has been at the forefront of marketing communication and technology evolution for 15 years. In 1997, Marco founded Grey Interactive which became the innovative, integrated marketing services agency FullSIX in 2001. Under his leadership the FullSIX network has expanded considerably, with over 500 employees in seven countries. The different networks created since 1997 are FullSIX, OTO Research, Seven, Sixandco, 6:AM, Backelite and SiXtizen. The group’s clients include Whirlpool, L’Oreal, Procter and Gamble, Adidas, Renault, La Banque Postale, Coca-Cola, SNCF, SFR, Nokia, ClubMed, Canal + and Danone. Marco still manages the marketing strategy of some major clients. Outside work Marco enjoys spending time in Tuscany with his family.

The doll in the picture is The Recession Monster, created by the FullSIX NYC team for their clients and partners. This furry cutie, way less scary than the real-life recession, was brought to life by Diane Koss.

Brush up on 2009 – A Say it With Links Post

22
Jan
09

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By luis FREITAS [FullSIX Portugal]
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When entering a new year, it helps to get updated by checking on the basic need-to-know items in the online world for the year to come:

Have fun and hope you’re ready for a full 2009.

Desperate Polaroid fans, rejoice?

21
Jan
09

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By olivier PEYRE [FullSIX USA]
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In February 2008, Polaroid announced that it is discontinuing production of its instant film, upsetting thousands of professional and amateur photographers, starting a gold-rush-like craze to buy the last cartridges available in-stores and on eBay (sometimes even flying to New York, right Guillaume?).

An article on Wired.com announced that a bunch of Dutch fans have bought up the Polaroid factory with all its equipment inside. Their challenge: re-start production of analog INTEGRAL FILM for vintage Polaroid cameras in 2010. They have exactly 12 months of development & research to find new (and better) solutions for replacing/upgrading problematic/expensive components, and to present a NEW Integral Instant film, ready for mass production at the end of 2009.

Don’t underestimate the power of your fans!

Place your Bets 2009 – Twitter

16
Jan
09

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By luis FREITAS [FullSIX Portugal]
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Twitter

In the beginning of the year, after catching up to a lot of feeds I didn’t check during the holidays, I realized on how much buzz there is going around Twitter. This seemingly simple web-based service, whose purpose was to share quick messages across a community, is gaining more and more momentum with the various applications being built around it, while at the same time suffering from the lack of a business model to guarantee it’s survival in the future.
In case you haven’t noticed, I’m going to place a list of a few Twitter apps and services that have been coming up that might interest you:

  • Tweettag - The app uses consumer-placed tags that Tweetag will use to show public Twitter messages that contain that particular keyword and also a list of other tags that are related to it.
    Twittrans - The app allows Twitter users to quickly translate any short message to a variety of languages. The translation is uses OneHourTranslation platform and results are promised in a few minutes.
    Tweeteorology – An app that displays tweets about the weather and allows users to search/limit by location.
    Twittermap - A mashup that shows tweets on a Google Map where you can search Twitter usernames and coordinates entered in specific format expected by TwitterMap.
    Tweetbacks – A service that functions like trackbacks but, instead of listing blogs linking to a specific post, it lists Tweets about a specific post. This one is gaining quite a buzz lately.
    Twopular – A really cool Twitter trend follower based on keywords used in Tweets. Think Google Trend Labs on Twitter.
    Magpie- Not my favorite, but still worth mentioning. Magpie is an ad network for Twitter. Brands and users sign up and create campaigns which consist of magpie-tweets (or ads). Twitterers allow Magpie to post magpie tweets among their tweets and for them to get paid for it.

    • I could go on forever, but you can check for yourself in the Twitter Apps databases growing online, like Twitdom or the Twitter Fan Wiki how these tools are growing and the kind of love Twitter generates on the users.

    Twitter may have found a business model already by using two powerful ideas – buying friends online and popularity ranks gained through the sheer number of users following another user. This is an idea that mixes the aggregator factor of social networks and the natural popularity that user gain through content contributions made that are relevant for the online world.

    So, to sum up this post, my bet for 2009 as a business that will continue to boom and to which the brands should be aware is Twitter – it will grow more and more through this year as more user will use it to share and search for opinions. Be prepared for this – or better yet, start thinking up ways to grow with it!

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    In Radio 4’s ‘Advertising: The Most Fun You Can Have With Your Clothes On!’, Robin Wight presents a wonderful history of the advertising industry; from classic TV ad campaigns to Cadbury’s Gorilla and a fascinating view of the future. Listen to the second (and last) broadcast now – it’s only available until Jan 19th!

    By becky POWER [FullSIX Paris], 0 Comments

    It’s Time To Show Your Face

    13
    Jan
    09

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    By lauren DIAMOND [FullSIX NY]
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    Instant messaging someone just a few feet away from you in your office? Today’s culture does not lend itself to face-to-face communication – digital communication, either through e-mail, instant message, text-message, twitter, or even Facebook Wall post, is sometimes easier to deal with; we can take time to construct our messages, process responses, and continue the conversation with greater purpose and clarity than we can off-line. Take a look as one member of Gen-Y graphs out his communication habits, showing us that, for Gen-Y, only the most urgent situations require a face-to-face discussion.

    More and more, brands are beginning to target young people while keeping the generation’s unique communication strategies in mind.  By asking consumers to “become a fan,” “share” and “post,” brands like Dentyne are tapping into everyday channels of communication while reaching consumers in a way that was never possible when the Boomers were stuck with landlines and snail mail.  While Dentyne may use the web to communicate its marketing agenda, their message is different –  ”Make Face Time”. What are they saying? Get out of your chair, away from your computer, and go talk to your friends. Their website even “shuts down” after 3 minutes – the time they feel is needed for viewing.  ”Face Time” may seem counter-intuitive to the average Gen-Yer, but Dentyne realizes who they are talking to; providing tools for this group to request face time with another person by filling out a request form – online.

    NEW YEAR RESOLUTION – IF YOU SAY ‘INTEGRATED’, MEAN IT!

    12
    Jan
    09

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    By becky POWER [FullSIX Paris]
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    Ok, so creating effective integrated campaigns isn’t a new resolution for 2009, it’s something that we want to achieve every year. But, every year we all feel that it doesn’t quite happen in the way it should. We still see media plans that have been put together without talking to the creative team or TV advertising that is completely unrelated to the digital campaign. Or, even worse, we see TV ads that are the digital campaign.

    After 12 years of working with digital media I am pretty frustrated by this and I usually tackle it by having a good old whinge. This year I have decided be a bit more constructive. So, if you can’t put your complete campaign with one agency, here are some of my thoughts on how we can create innovative and effective campaigns that work all the way from awareness to purchase and loyalty.

    • Brief all of your agencies at the same time.
      A campaign that sits with one agency for the first 3 months of its conception will naturally have a strong imbalance towards that channel and integration later will be much more difficult.
    • Insist that your agencies present together.
      This is an easy way for see how the consumer will see the different channels working together, from the start.
    • Break the ‘tv-decides-all’ tradition.
      The big campaign idea might come from your above-the-line agency but it doesn’t have to. Many clients are already leading with concept, not agency, and they get great results.
    • Drop the ego and collaborate.
      Yes creative people, I mean you. We all want to produce great work and, amazing as it might seem, working together makes that more likely.
    • Remember that integrated doesn’t mean ‘matching luggage’.
      This isn’t a new message by any means but it is still forgotten too often. Each channel is unique and requires a different approach so the key visual from the press ad probably isn’t going to do the job online.
    • Maximise the output from your shoots.
      Simply informing everyone when there is a shoot and allowing them to request additional footage can shift a campaign from ordinary to amazing. And, it saves everyone time and budget.

    I’m sure a lot of you are thinking that these are the most basic things in the world and you’re right. So no more excuses, let’s make it happen in 2009.

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    The TrendWatch:


    The TrendWatch is the collective postings of some of the FullSIX Group’s designers, strategists, and consultants on new media and marketing trends. It is meant to be an impromptu think-tank, and is a way for us to share theories and beliefs about how we think communication and connectivity is evolving.

    We work for The FullSIX Group; a leading full service marketing agency with digital DNA. From our 15 international offices with over 600 employees, we constantly embrace and encourage innovation to make integrated marketing and communication campaigns that are more accountable and efficient for our clients.

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