Marketing in a Digital World: Key Takeaways
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This is the latest version of my Marketing for a Digital World presentation. Lots of new and exciting examples of the good and the bad. But you will have to work out which is which. There is a drinks category angle to this one. We all like drinks, don't we?
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Marketing in a Digital World: Key Takeaways
- 1. Marketing in a digital world Nick Emmel @ewarwoowar
- 2. What we’ll cover today
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- 6. DIGITAL
- 7. DIGITAL
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- 32. Things to remember Marketing is still marketing – there is just more to it Marketing is not digital, the world is Create ideas that can be advertised, not advertising ideas Do stuff because you should not because you can
Notas do Editor
- For several years there has been consensus among a very vocal and highly placed group of marketing executives and commentators that fundamental changes have taken place in our culture and in technology which render traditional modes of marketing communication no longer relevant or effective.The thinking behind the hypothesis goes like this:Marketing is a "conversation."People are no longer willing to accept the "interruption" model of advertising.The objective of marketing communication is for a brand to create "engagement" with consumers.Traditional forms of advertising do not create engagement and have substantially outlived their usefulness.The Internet has created an environment in which consumer control of his/her purchasing behavior is unprecedented.Consumers are quickly moving away from brands that are obviously out to sell them something in favor of brands that seek to engage with them and have conversations.Social media represents the most effective medium for engaging with consumers and having these conversations.Among mainstream brands that have adopted this new marketing paradigm, none has been more zealous than Pepsi-Cola.Last year, Pepsi substantially abandoned its long-standing commitment to traditional advertising in favor of social media. It canceled its annual Super Bowl advertising. It diverted tens of millions of dollars from traditional advertising to create the "Pepsi Refresh Project." Pepsi Refresh was an online social media initiative in which Pepsi gave out 20 million dollars. They also spent many millions more in support of this initiative.I am pretty certain Refresh is the largest social media initiative ever undertaken. Never before, to my knowledge, has a brand taken so much of its traditional advertising money and energy and re-directed it into social media.Most major brands have some kind of social media program. But never before, to my knowledge, has a major consumer brand made a social media program the centerpiece of its advertising and marketing."We took the divergent path," explained Frank Cooper, chief consumer engagement officer for Pepsi. "We wanted to explore how a brand could be integrated into the digital space."The idea behind the program was that you, the consumer, got to engage with Pepsi by voting for the "Refresh" projects you deemed most worthy. There were also other opportunities to engage through an enormous online effort -- Facebook, Twitter,YouTube, website, blogs. Millions of dollars were also spent in what might be called "traditional advertising in support of social media." Skeptics (such as yours truly) have been eagerly awaiting a report card on this initiative as it is the first real test case for a major brand implementing a massive transfer of marketing resources from traditional advertising to social media. The results are now in. It has been a disaster.Last week, The Wall Street Journal reported that Pepsi-Cola and Diet Pepsi had each lost about 5% of their market share in the past year. If my calculations are correct, for the Pepsi-Cola brand alone this represents a loss of over $350 million. For both brands, the loss is probably something in the neighborhood of 400 million to half-a-billion dollars.For the first time ever Pepsi-Cola has dropped from its traditional position as the number two soft drink in America to number three (behind Diet Coke.)In 2010, Pepsi's market share erosion accelerated by 8 times compared to the previous year.The Refresh Project accomplished everything a social media program is expected to: Over 80 million votes were registered; almost 3.5 million "likes" on the Pepsi Facebook page; almost 60,000 Twitter followers. The only thing it failed to do was sell Pepsi.It achieved all the false goals and failed to achieve the only legitimate one.In reaction to this disaster, Massimo d'Amore, chief executive of PepsiCo Beverages Americas had this to say..."When my ancestors went from the Middle Ages to the Renaissance, they blew up the place, so that's what we are doing."He also said... "We need television to make the big, bold statement...Social media has taken a huge hit. Only zealots and fools will continue to bow down to the gods of social media.
- “reignite the athletic spark in both the beverage and those who drank it,”
- This case study demonstrates how Coca-Cola and its agencies increased relevance in a highly competitive beverage market. The power of the first name and the world's most iconic brand brought people together and reunited Australians with the idea of getting together over a Coca-Cola soft drink. Specifically, we gave teens and young adults an exciting reason to reintroduce Coca-Cola into their repertoire.The investment in this summer campaign and breakthrough creative work has delivered outstanding results for Coca-Cola. In a sparking category that is decreasing by 0.7%, Coca-Cola grew sales transactions across bottles and cans of Coke by 3%, increased volume by 4%, and an astonishing 5% of Aussies have started to put Coca-Cola back into their repertoire again. Specifically, young adults' consumption increased significantly during the campaign, increasing by 7%.(Source: 3MM P4W Consumption October to December 2011 B3 Survey Australia)Sales transactions across bottles and cans of Coke grew by 3% and volume increased by 4% – all during the wettest Australian summer since records began 111 years ago. An astonishing 5% of Australians began to drink Coke for the first time or for the first time in over a year. Young adult consumption increased significantly during the campaign, increasing by 7%.
- Tassimo: The team had set an aggressive goal to double its sales of brewers in 2010. We achieved an over delivery on brewer shipments by 21.5% and according to NPD tracking, brewer consumption for the year was up + 134% vs. prior year.
- Bundaberg Rum‘s Watermark campaign has been recognised with a Silver Integrated Lion and a Gold PR Lion at Cannes International Festival of Creativity. On January 26, 2011, Queensland in Australia was hit by floods so devastating they wiped out 75% of the state. Despite the Bundaberg distillery being flooded the company felt a duty to lift the spirits of Queenslanders as it had done for over 100 years. Two days after the distillery was drained, Bundaberg launched Watermark, a new product designed to rally the nation’s support and help rebuild Queensland’s fighting spirit. Watermark was branded to mark the point where the floodwaters peaked, and to mark the spirit in the towns on the road to recovery. All proceeds from the sales of Watermark went to the flood relief.Bundaberg worked with Leo Burnett to promote the Watermark campaign with 16 watermarks and 16 music festivals, beginning by going to the 16 worst hit towns and placing a watermark on the walls of the pubs. Watermark was launched with 16 music festivals in these 16 areas, all kicking off at midday on April 16. Australia’s biggest bands played, which drew the attention of the national press. The spirit then spread through national media and social networks and the nation united behind Watermark. Watermark then went on sale in bottle stores nationwide, online and at the distillery. When Watermark went on sale people queued up for over 96 hours to buy it. The first run of Watermark sold out within a week and a second run went into production. The product and events received a lot of attention in the press and in social media, and the entire nation rallied behind the cause, meaning Watermark played a huge role in lifting Queensland’s spirits and helping the State on the road to recovery.
- An awful lot of you seem to care about the apostrophe. I'll go back later in my lunch hour and see how it's doing.I found the apostrophe where I'd seen it earlier. Shivering from the cold, crying from hunger, I gave it my coat and took it in.After a hot meal and some time to calm down it finally spoke. 'Why?' it said. 'I'n one of the longest serving employees. Why fire me now?‘'It's not your fault, apostrophe,' I said, 'but the business has changed. It's a digital age, you're just a victim of rebranding.‘'LIke Marathon?' it said. 'Or Opal Fruits?' 'Exactly,' I said. The apostrophe smiled, glad not to feel so alone anymore.The apostrophe cheered up at the thought and spent the rest of the day talking warmly with the staff here, saying a final goodbye.
- Andes Beer has provided men in Mendoza, Argentina, with a way to spend time with both their girlfriends and their male friends with the Andes Friend Recovery campaign. The project followed on from the success of the 2009 Andes “Teletransporter” project, using a cutting-edge robot with human features, installed in the main bars of Mendoza. The campaign, online at andesfriendrecovery.com, won a Silver Outdoor Lion at Cannes International Festival of Creativity.The AFR was installed in the most important bars of the Mendoza, during October and November 2010. During that time, the Andes Friend Recovery website received over 2 million visits, 5000 of which were “recovered” friends. The campaign was launched on traditional media; TV, out of home and radio advertising. How does it work? Your friends go to a bar and sit at the Andes Friend Recovery table. They ask for a password which is sent to you via an SMS, while you fulfil your boyfriend duties. Wherever you are you have to log in to the AFR page and use the webcam to map your face. Then you appear at the bar, via the Andes Friend Recovery robot.Andes Friend Recovery is an installation based on TelePresence via video conference. Using interactive facial recognition software, the webcam cuts the face of the person in front of the computer, and applies it exactly inside the robot’s face. The robot sits at the bar, and also uses an audio system to enable hearing and speaking. Users can turn the AFR’s head using a computer keyboard, to get a panoramic view of the situation. Visitors to the AFR website were able to join in at the bar witness the conversations among different friends.
- Cerveza Norte, the Argentina beer brand, and Del Campo Nazca Saatchi & Saatchi, have won a Gold at the Clio Awards for Integrated advertising campaign, “Le MejorExcusa Del Mundo” (The Best Excuse In the World). Men from the North of Argentina needed a good excuse to go to the bar to drink beer with their friends. They needed the best excuse ever. For each Norte beer a man drank at the bar, the brand allotted one minute of good deeds. A Norte team was in charge of the work. They put counters in the street with the accrued minutes, and the good deeds could be followed on the Internet.50,043 minutes were supplied for the making of good deeds. The minutes were used to repair schools, improve parks, restore monuments, plant trees and clean up lakes. The campaign got the consumers’ attention and the word of mouth was immediate. The buzz spread along different media including; TV, Radio and Newspapers. Images of the restored places were broadcasted. The Mayor of Tucuman gave Norte the key of the city and they drank a toast together.