WFA Annual Report 2014

WFA Annual Report 2014
ANNUAL REPORT 2014
PRESIDENT’S VISION 2 MESSAGE FROM THE MANAGING DIRECTOR 4 EXECUTIVE COMMITTEE 6 PEER-TO-PEER GROUPS 10 CMOFORUM 12 IMCFORUM 14 MEDIAFORUM 16 DIGITALFORUM 18 SOURCINGFORUM 20 INSIGHTFORUM 22 RESPONSIBLE ADVERTISING AND CHILDREN PROGRAMME 24 POLICY ACTION GROUP 26 DIGITAL GOVERNANCE EXCHANGE 28 ALCOHOL MARKETING WFA EVENTS 2014 30 GLOBAL MARKETER WEEK, SYDNEY 32 LATIN AMERICA REGIONAL MEETING, PANAMA CITY WFA STAFF 34 TRENDS AND FORECASTS 36 THE CONTAGIOUS DECADE: A PRIMER 40 WARC AD OUTLOOK AND DATA FINANCIAL STATEMENT 46 AUDITOR’S REPORT 47 2014 IN NUMBERS 48
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3 President’s Vision “The WFA commissioned research into what makes great brand marketing in the Digital Age. The results showed us that the recipe for success are four new ‘P’s; people, purpose, principles and participation. I firmly believe these criteria can equally be attributed to the WFA.” The World Federation of Advertisers commissioned research in 2014 in the context of Project Reconnect (www. project-reconnect.com) into what makes great brand marketing in the Digital Age. The results showed us that the recipe for success are four new ‘P’s; people, purpose, principles and participation. As I reflect on my two-year tenure as WFA President, I firmly believe these criteria can equally be attributed to the WFA. This is why WFA has been so successful in serving brands for over sixty years and, as a global organisation, why it is so uniquely placed to promote these principles in the future. WFA would be nothing without the people that make up its membership. It brings together over five thousand marketing and public affairs professionals in a uniquely diverse yet collaborative network of over seventy of the world’s biggest brand owners and 56 national advertiser associations on six continents. These people are united in a common purpose; to advance and improve the activity of marketing in all its forms so that brands can play a meaningful, responsible and sustainable role in a fast-changing society which increasingly demands more from corporations and brands. Its principles have remained true since its foundation; effective and efficient marketing communications based on responsible advertising standards. WFA is an inclusive and progressive organisation which engages in a continuous dialogue with policy-makers, society and consumers. Participation is at its core, bringing together the broader marketing community with society’s many stakeholder groups. Correspondingly, it helps brand marketers better navigate a fast-changing world. It equally plays an essential role in societal and policy debates to ensure that the role and value that marketing can offer to individuals, societies and economies are properly understood. I have been proud to be WFA President and have been greatly impressed with the quality of the work it produces, the dedication of its staff and the knowledge, calibre and passion of its members. I firmly believe WFA will continue to thrive on the basis of these four principles. With my best wishes, Martin Riley, WFA President
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5 It has been a challenging year for many of our members. That is why I am even more grateful for your continued support. We are determined to increase our support to you and your teams to help you navigate these uncertain times, hence why we are bringing our members together more than ever through face- to-face meetings and remote knowledge exchange. With the launch of two exciting new working groups, the Digital Governance Exchange (DGX) and the INSIGHTFORUM, and an increase in the number of meetings of existing groups, public affairs and marketing peers came together to share strategies, experiences and insights almost ninety times during the course of 2014. Significantly, the geographical balance of these meetings is changing too with a large proportion now taking place outside Europe and North America. A highly successful Global Marketer Week hosted by our Australian association in Sydney was followed by over thirty client-side marketer gatherings in Singapore, Mumbai, Mexico City and Panama as well as our first ever global MEDIAFORUM simultaneously held across three time zones in New York, London and Singapore. 2015 is an important milestone for the WFA as we will be holding our first Global Marketer Week in Africa in partnership with our Moroccan association. We are already making inroads into trying to increase WFA’s footprint in Africa with a part-time resource in Nairobi working closely with our regional Vice-President based in Nigeria. We have also invested a great deal into greater remote knowledge exchange so members can access our services faster and in a more cost-effective manner. In 2014, WFA hosted monthly webinars on priority issues for marketers and conducted over a hundred marketing benchmark requests. And 2015 will see the launch of the WFA’s online Global Knowledge Base resourced by a full-time marketing services manager. The global economic outlook remains uncertain. This is why we are strengthening our set-up to increase our members’ ability to access our services in speedier and more effective and cost- efficient ways. Stephan Loerke, WFA Managing Director Message from the Managing Direct Message from the Managing Director “The global economic outlook remains uncertain. This is why we are strengthening our set-up to increase our members’ ability to access our services in speedier and more effective and cost- efficient ways.”
6 EXECUTIVE COMMITTEE STEPHAN LOERKE WFA Managing Director MARTIN RILEY WFA President wfa officers Executive Committee MIKE HUGHES Director General ISBA, UK WFA Treasurer MATTHIAS BERNINGER VP Public Affairs MARS WFA Deputy President
7 EXECUTIVE COMMITTEE SERGEY GLUSHKOV President RAA, Russia Regional VP C&E Europe WFA Regional Vice-Presidents LOÏC ARMAND Senior VP External Affairs L’Oréal Regional VP Western Europe BOB LIODICE President & CEO ANA, USA Regional VP North America JAVIER MEDRANO Senior VP Marketing Grupo Bimbo Regional VP Latin America IDORENYEN ENANG Managing Director, Central West Africa L’Oréal Regional VP Africa RAHUL WELDE VP Media, Asia, Africa, Middle East & Turkey Unilever Regional VP Asia-Pacific
8 EXECUTIVE COMMITTEE MICHAEL BIRKIN Chief Marketing Officer Acer ROEL DE VRIES Corporate VP, Global Head of Marketing and Brand Strategy Nissan SARAH DELEA Director External Affairs - Health & Wellness Mondelez International FRANK ABENANTE VP Brands & Innovation Anheuser-Busch InBev JORIS POLLET Director Government Relations & Public Policy, Europe, Middle East & Africa & Asia Procter & Gamble ALESSANDRO CAGLI EU Affairs Director Ferrero MARY CATHERINE TOKER VP Government Relations General Mills ELEONORE OGRINZ Head of International Advertising Red Bull MARC MATHIEU Senior VP Marketing Unilever STEPHEN KEHOE Head of Global Financial In- clusion & Regional Corporate Relations Visa Worldwide MARIANN COLEMAN Director Global Agency Relations and Performance Intel DAVID WHELDON Head of Brand, Reputation, Citizenship and Marketing Barclays Group WOUTER VERMEULEN Public Affairs and Communications Director, Health and Wellbeing Coca-Cola WFA Corporate Member Representatives
9 EXECUTIVE COMMITTEE Presidents Emeriti JAN MORTEN DRANGE CEO ANFO, Norway RON LUND President and CEO ACA, Canada ROGER HARLACHER President ASA, Switzerland PIERRE-JEAN BOZO VP and Director General UDA, France MOUNIR JAZOULI President GAM, Morocco JOACHIM SCHÜTZ CEO OWM, Germany RAFAEL SAMPAIO Executive Vice President ABA, Brazil BHARAT PATEL Chairman ISA, India AHMET PURA Chairman RVD, Turkey BARBARA KRAJNC Director General SOZ, Slovenia HOU YUNCHUN President CANA, China MALCOLM EARNSHAW CBE CHRIS VAN ROEY CEO UBA, Belgium HANS MERKLE WFA National Association Representatives
10 PEER-TO-PEER GROUPS Attendees 2014 Michael Aidan, Head of Digital and VP Digital Brand Platforms Group, Danone Heather Allen, EVP Category Development, Reckitt Benckiser Vincenzo Brugaletta, Head of Integrated Marketing Team, LUXOTTICA João Ciaco, Director Advertising and Relationship Marketing, Fiat Keech Combe, SVP Global Marketing, Combe Mariana Coronel, Global Marketing Director, Groupe Bel Silvia Davila, Global Food Marketing Head, Mars Roel De Vries, Corporate Vice President, Nissan Allan Gamboa, SVP Marketing, Grupo Bimbo Gannon Jones, Head of Brand Marketing, MillerCoors Inese Kingsmill, Director, Corporate Marketing, Telstra Marc Mathieu, SVP Marketing, Unilever Bruce McColl, Chief Marketing Officer, Mars Javier Medrano, SVP Marketing, Grupo Bimbo Danny Micklethwaite, VP Global Brand Strategy, Brand Portfolio & Marketing Capability, Arla Foods Chris Miller, Divisional VP, Global Brand Strategy and Innovation, Abbott Luc Poniewiera, Global Media Director, Ferrero Yin Rani, VP Integrated Marketing, Campbell Soup Company Daria Rasmussen, Senior Digital Manager, Carlsberg Carlos Ricardo, Global CMO, BBVA Martin Riley, CMO, Pernod Ricard Marc Schroeder, SVP Global Nutrition, PepsiCo Burak Sevilengul, CMO, Turkcell Natanael Sijanta, Director Advertising & Exhibitions Mercedes-Benz Passenger Cars, Daimler Raluca Simiuc, International Brand Manager, Red Bull Hanne Søndergaard, Global SVP Marketing, Arla Pierre Woreczek, Senior VP - Chief Brand & Strategy Officer Europe, McDonald’s Cannes, June
11 PEER-TO-PEER GROUPS CMOForum ‘CMO’ is one of the acronyms we hear the most in our industry. Many fora claim to enable CMOs to network and learn from each other yet few deliver on that promise. That’s why WFA was delighted when our first CMOFORUM to be held at Cannes Li- ons welcomed what the Festival organis- ers described as “seriously high calibre” group of 27 CMOs, chaired by Martin Riley, CMO of Pernod Ricard and WFA President. For a group of marketing leaders, unsur- prisingly the session focused on leading an effective global marketing organisation. Learnings from the Marketing 2020 Research, which was conducted in collaboration with WFA, helped trigger roundtable discussions. One of the key themes which emerged was flexibility in terms of organograms being iterative and enabling cross-discipline collaboration but also in terms of training programmes accommodating young talent who are used to engaging with content in a time, place and format which suits their needs. When quizzed on their priorities, 85% of senior marketers in WFA’s membership cited ‘innovation in marketing’ as a top priority. CMOs, including Pierre Worec- zek from McDonald’s, helped tackle this topic through discussions around how they are acting as change agents within their organisations. In many cases, change involves creating environments for their talented col- leagues to be able to behave more as though they worked for a small, nim- ble, start-up rather than for one of the world’s biggest multinationals. Finally the group turned its focus to people rather than “consumers”. Unile- ver’s Senior Vice-President of Marketing, Marc Mathieu, introduced Project Re- connect (www.project-reconnect.com), the WFA’s flagship initiative to try and ensure brand marketing matches up to people’s and society’s fast-changing sensitivities, aspirations and behaviours; essentially, an effort to help marketers build more human, responsible and re- sponsive brands for a digital age. Whilst many companies strive to put people at the heart of their businesses, the same cannot necessarily be said of our industry. This project represents the first time the marketing sector has tried to apply that people-centric logic to our ecosystem. Marc introduced the project’s vision and called on others to join the Project Reconnect Advisory Board. Seventeen CMOs enthusiastically came on board and are now actively helping to steer the future strategy of the initiative. Acting as project ambassadors, Marc Mathieu, Bruce McColl from Mars, Roel de Vries from Nissan and Natanael Sijan- ta from Mercedes-Benz have all penned columns which have featured widely in the trade press expounding the critical importance of building a new marketing model based on a new 4Ps; people, purpose, principles and participation.
12 PEER-TO-PEER GROUPS Attendees 2014 Yazmin Agonizante, BBVA Victoria Aguilar, Combe Gaby Aguilera Lara, LEGO Traci Alford, Shell Sophia Angelis, Brown Forman Susanne Arfelt, Unilever Manuel Bautista-Santiago, Microsoft Amcke Becker, FrieslandCampina Noelle Beristain, Cuervo Chiara Bernardi, Luxottica Kris Boger, Red Bull Diego Bracamontes, The Coca-Cola Company Nathalie Brochand, APB/ Heineken Gaston Calabresi, American Express Jorge Calvillo, Volkswagen Group Giorgio Caporusso, Ferrero Carolina Ana Cardoso, Luxottica Paco Casa, Grupo Bimbo Mandy Cheong, General Mills Jessie Chuah, Guinness Anchor Berhad Guillaume Conteville, MasterCard Mariana Coronel, Bel Group Ben Crowther, BP Sameer Desai, Mundipharma Alexandra Dimiziani, The Coca-Cola Company Martin Dunn, SAB Miller James Eadie, The Coca-Cola Company Valerie Falciola, Bel Group Michelle Froah, Kimberly Clark Wynthia Goh, SAP Juan Pablo Gomez Macfarland, Volkswagen Group Sergio Gonzalez, Cuervo Julia Gorrod, ISBA (UK) Martina Gripp, Boehringer Ingelheim Nacho Guijarro Torres, Johnson & Johnson Chiradeep Gupta, Unilever Lisa Halim, SAP Josep Hernandez, Mondelez Carlos Hernandez, Abbott Shennon Ho, Johnson & Johnson Ivan Jennings, Colgate Palmolive Enzu Jeon, Johnson & Johnson Cécile Jolly, McDonald’s Mattias Jöngard, IKEA Kate Keane, Johnson & Johnson Khoo Kar Khoon, MAA (Malaysia) Morten Kjaer, IKEA Andrew Knott, McDonald’s Greg Kukolj, Heineken Marcos Leal, Abbott Carla Lechevalier, L’Oréal Moises Leiferman, The Hershey Company Jonathan Lidington, SAB Miller Lisa Lilley, Shell Gary Lim, Johnson & Johnson Damir Maric, Daimler Elisa Martinez Morales, Intel Ellen Marzell, Microsoft Javier Medrano, Grupo Bimbo Diana Moran, Boehringger Ingelheim Debbie Morrison, ISBA (UK) Reem Naamani, Emirates Christine Ng, Nestlé Charlie Oates, Combe Jane O’Keeffe, Kellogg Lander Otegui, Cuervo Vivian Pan, VISA Jasmine Pang, SAP Ismael Pascual, The Coca-Cola Company Jan Worre Pedersen, Arla Foods Ricardo Perez, Grupo Bimbo Valentina Pettenati, SAP Ulises Ramirez, The Coca-Cola Company Hugo Saavedra, Mundipharma Steve Sargeant, Diageo Geoff Seeley, Unilever Gurmit Singh, VISA Miah Sullivan, Luxottica Sriram Swaroop, Unilever James Taylor, Diageo Travis Teo, SAP Singeng Tong, Fraser & Neave Alejandra Varela, Combe Claudie Voland-Rivet, UDA (France) Jamshed Wadia, Intel Carole White, Mondelez The Coca-Cola Company, Mexico City, June MasterCard, London, April SAP, Singapore, February
13 PEER-TO-PEER GROUPS Whether a client chooses to work ‘hori- zontally’ with a large agency holding company or focuses more on smaller- scale specialist agencies, integration remains one of the biggest challenges facing senior marketers in WFA membership. This internal and external ‘orchestration’ role puts a spotlight on a client’s leadership skills, perhaps more than in any other area. This is especially true when briefing multiple agencies and internal stakeholders to deliver integrated programmes. Briefing was a key topic for 2014, tackled via peer research and within meetings. We discovered that WFA members are pretty humble in self-assessing their capabilities. Despite recognising potential difficulties and areas for improvement, 89% felt that a ‘truly integrated briefing process’ was worth the effort. Even more members were convinced by the potential benefits, with 96% agreeing that ‘an integrated briefing process had made their campaigns more effective’. Another, yet related, core topic in 2014 was marketing capabilities. Like training and HR strategy, these may sound like buzzwords for some, but it is clearly not a new area. We have witnessed an increasing number of members with capabilities in their titles and an apparent increase in investment in this area. One of our key learnings from research and our discussions was how few companies have put in place a strategy for measuring the ROI from these increased efforts. One area for improvement was to work out whether companies are moving the needle in relation to internal capabilities. The third big topic area for 2014 was translating consumer insights into big unifying marketing ideas. With the support of WFA’s strategic partners, Brain Juicer, much debate was generated on this topic. As ever there was clearly no one-size-fits-all approach. Particularly heated debate surrounded whether companies can effectively test IMCFORUM Integrated Marketing Communications big ideas. There was greater consensus however around the importance of consumer insights. One of the actions from these discussions led to the launch of the WFA INSIGHTFORUM. At industry level, WFA led sessions fea- turing members of the IMCFORUM at two major events in APAC. The Digital Matters Conference explored the importance of emotion in advertising. In September at Spikes our panel including Abbott, Intel and Mundipharma talked on approaches to leveraging user-generated content. The IMCFORUM now boasts nearly 450 individuals. Owing to the exceptional leadership of Geoff Seeley from Unile- ver, Gary Lim at Johnson & Johnson and Javier Medrano at Grupo Bimbo, we managed to deliver world-class events in London, Singapore and Mexico City to a geographically disparate group of marketers. Two of the meetings, hosted by Coca-Cola in London and Mexico City, boasted our highest ever attendances since the group launched in 2009.
14 PEER-TO-PEER GROUPS Attendees 2014 Atul Agrawal, TATA Group Hanne Alblas, BVA (Netherlands) Traci Alford, Shell Rashmee Bandela, Johnson & Johnson Sital Banerjee, Philips Didier Beauclair, UDA (France) George Bincymon, Ferrero Samal Bishwajeet, Volkswagen Group Sarah Bohaboy, RB Andy Bolden, GlaxoSmithKline Manuela Botelho, APAN (Portugal) Vincenzo Brugaletta, LUXOTTICA Mark Butterfield, Boehringer Ingelheim Americo Campos Silva, Shell Abhish Chandhok, Microsoft Corporation Neeraj Chawan, Diageo Shenny Chen, Adidas Nicole Chong, Diageo Michelle Churba, Dannon Jessica Claar, MasterCard Worldwide Mark Clowes, AIG Zvi Cole, Beiersdorf Daniela Cordua, IKEA Andrew Coulter, Unilever Gerry D’Angelo, Mondelez International Richard Davies, RB Kirsten Daylies, Microsoft Corporation Paola De Benedetti, Indesit Sudhan Deo, McDonald’s Sameer Desai, Mundipharma Caroline Devys, LEGO Danny Duan, Hershey Rajiv Dubey, Dabur Dirk Eckelt, Beiersdorf Valerie Falciola-Borel, Groupe Bel Kiki Fang, Ferrero David Forney, Hershey Vincent Frezzo, Coty Ian Gallois, Mars Priyanka Gandhi, Colgate-Palmolive Gayathri Ganesh, Johnson & Johnson Sanchita Ganguly, Asian Paints Tom Gill, Heineken Piotr Gleinert, Novartis Christian Godske, Carlsberg Marni Gordon, ANA (US) Yvan Goupil, SABMiller Géraldine Grümmer, Orange Rajat Gupta, Procter & Gamble Stefan Handler, Daimler Hara Harakrishnan, ISA (India) Hattie Ho, Unilever Julie Hollander, PepsiCo Matthew Hotten, Jaguar Land Rover Santosh Iyer, Mercedes-Benz Benedetta Jacopetti, Red Bull Ben Jankowski, MasterCard Worldwide Phyllis Joseph, Unilever Mark Kaline, Former ANA Media Leadership Chair Rup Kamal Kalita, SAP Joanne Kelly, AIG Qaiser Khalil Bachani, GlaxoSmithKline Martin King, Kellogg Vanda Laura, Shell Anne Lee, Jaguar Land Rover Sean Lee, The Coca-Cola Company Denise Leo, SAP Shan Li, Daimler Sophie Li, IKEA Wendy Li, Intel Beatrice Lindvall, Johnson & Johnson Ulrich Loechner, Daimler Oliver Lonicer, SABMiller Gerhard Louw, Deutsche Telekom Sandy Ma, GlaxoSmithKline Conor MacLoughlin, Mondelez International Shilpi Malik, Beiersdorf Andre Marciano, Pernod Ricard Alessandra Marinacci, Red Bull Nadine McHugh, Colgate-Palmolive Atit Mehta, Unilever Julio Michavila, SEAT Colleen Milway, JPM Chase Bhavana Mittal, GlaxoSmithKline Jeremie Moritz, Pernod Ricard John Pain, BP Lei Pang, The Coca-Cola Company Fabien Petit, L’Oréal Heiko Pfiffer, Daimler Luc Poniewiera, Ferrero Sindhuja Rai, Mondelez International Kalyan Raman, Mahindra & Mahindra Jacqueline Rams, Mars Bob Reaume, ACA (Canada) Kelly Rose, Vodafone Ramin Saher, RB Aditya Save, Marico Sarah Schwarzer, Daimler Libor Sedivak, Volkswagen Group Johannes Seidl, Red Bull Sonia Serrao, TATA Global Beverages Komal Shukla, Boehringer Ingelheim Jonny Silberman, Dannon Daniel Simon, Daimler Gabriella Simone, Indesit Shuchi Singhal, Idea Cellular Andreas Sjöberg, IKEA Paul Smith, SABMiller Nick Sparey, Johnson & Johnson Subha Sreenivasan, Godrej Consumer Products Steven Sun, Unilever Alex Tamayo, Combe Amit Tiwari, Philips Marco Trezzi, SAP Girish Upadhyay, TATA Motors Anne Van Merkensteijn, Procter & Gamble Deepshikha Vasishta, Castrol Sal Vitale, Johnson & Johnson Alberto Vivaldelli, UPA (Italy) Feona Wang, Microsoft Corporation Tiow Wei-Yeong, Diageo Bob Wootton, ISBA (UK) Jan Worre Pedersen, Arla Foods Carol Wu, Pernod Ricard Samuel Xiao, BP Vega Xie, Daimler Jessie Xiong, Daimler Lucy Xue, AB Inbev Edwin Yan, Mondelez International Elvira Yu, Philips Tony Zhang, Ferrero Rasheed Zhao, Mondelez International Wendy Zhao, Shell William Zheng, Philips Kelly Zhou, Coty Grace Zhou, Mondelez International Lucy Zhuang, Intel Mercedes-Benz Stadium, Stuttgart, May TATA, Mumbai, November
15 PEER-TO-PEER GROUPS It was another healthy year for global ad markets in 2014 with spend up by 5% year-on-year, according to most sourc- es, taking global ad spend to in excess of $500 billion. Digital was a huge factor in this growth and the share that this channel takes of total spend continues on a steep upward trajectory. With increased digitisation comes new trading mechanics, and programmatic buying is celebrated by some as being the solution to a labour intensive, inef- ficient and ineffective process. But the transparency provided to clients by the Agency and Independent Trading Desks who provide this service is a concern. Seventy-one per cent of respondents to a recent MEDIAFORUM survey admitted that they are dissatisfied with the level of transparency provided by their Agen- cy Trading Desk. To respond to these concerns WFA established a programmatic task force, with participation from seven members, including MasterCard, Coca-Cola, John- son & Johnson and Philips. It was de- cided that increased education as well as real options for improved visibility and control were required. The WFA Guide to Programmatic Media was produced and received considerable attention from the global client community, the wider industry as well as the trade press. Naturally, the scale of programmatic var- ies by market. Digital represents a rela- tively low share of spend in India, but it’s growing rapidly, and there was a clear interest in this topic among the thirty client-side media directors who attended our inaugural MEDIAFORUM in Mumbai. With a population of 1.2 billion, unsur- prisingly, media audience measurement was found to be a key priority for media directors in India. Interestingly, measurement (or lack of it) also emerged as being a key barrier to effectiveness for the forty global media directors who joined for our first MEDIAFORUM held simultaneously across three time zones, in New York, London and Singapore. MEDIAFORUM While this session served to widen the net of solutions to common media challenges, it also helped to illustrate how the client-side community is often strug- gling with the same set of problems, demonstrating the value that the WFA can bring through its collective wisdom. Further leveraging our network, earlier in the year we produced a ‘Transparency Index’, a piece of research intended to identify and highlight the countries with lower levels of media market transparency, the factors responsible for limiting advertiser visibility, and the safeguards that can be put in place. In 2015, we look forward to finding more ways to deliver insight and support to an ever-growing community of media professionals.
16 PEER-TO-PEER GROUPS Attendees 2014 Katie Allen, Brown-Forman Delphine Aroun, Microsoft Corporation Sebastien Bardin, Shell Victor Bayata, IKEA Stephanie Bell, L’Oréal Siro Bellone, Ferrero Juliette Betant, Coty Sylvana Chang, SAP Anne Cohen-Aloro, Procter & Gamble Andrew Crichton, Audi Damien Cummings, Philips Gael Demenet, Groupe Bel Guillaume Du Gardier, Ferrero Tobias Eidem, SA (Sweden) Patrick Eikelenboom, Mars David Ellison, ISBA (UK) Peter Espersen, LEGO Group Francesco Federico, Acer Michele Fernandez, Heineken Esther Foo, Mundipharma Jonny Freeman, BP plc Thomas Froimovici, Ferrero Laurent Geffroy, Orange Christian Godske, Carlsberg Benjamin Goh, Daimler Kenneth Gronholm, Philips Géraldine Grümmer, Orange Chiradeep Gupta, Unilever Thomas Heilskov, Arla Foods Bee Hong Lim, Philips David Huang, Shell Matthias Ihnken, Beiersdorf Nihal Kara-Senil, Johnson & Johnson Alina Khachatourian, Shell Qaiser Khalil Bachani, GlaxoSmithKline Kirsten Lahn Hansen, Colgate-Palmolive Lucie Lancashire, Colgate-Palmolive Jonathan Lewis-Jones, Nokia Gary Lim, Johnson & Johnson Visna Lim, L’Oréal Ryan Longstaff, Intel Gerhard Louw, Deutsche Telekom AG Martin Majlund, Carlsberg Giovanni Mari, LUXOTTICA Antonia McCahon, Pernod Ricard Sandrine Moncere, Novartis Jeremie Moritz, Pernod Ricard Nada Muammar, Intel Christine Ng, Nestlé Sara Norberg, Heineken Steven O’Reilly, Procter & Gamble Vivian Pan, Visa Worldwide Jasmine Pang, SAP Valentina Pettenati, SAP Stefan Pfeiffer, Volkswagen Group Matthew Pritchard, Novartis Peter Rohman, IKEA Claudia Roth, Barclays Samuel Rueff, Procter & Gamble Thane Ryland, Nokia Libor Sedivak, Skoda Nigel Sheldon, Barclays Gurmit Singh, Visa Worldwide Caroline Stephens, Johnson & Johnson Kylie Summerhayes, Microsoft Corporation Lily Tay, SAA (Singapore) Travis Teo, SAP Jamshed Wadia, Intel Michelle Yeo, LEGO Group Pernod Ricard, Paris, February
17 PEER-TO-PEER GROUPS Spend on digital marketing continued its relentless growth in 2014 and digital, in all its forms, now represents one quarter of total marketing investment globally. The line between digital and traditional marketing continues to blur and for marketers in 2014, it is less about digital marketing than marketing in a digital world. Although online and offline silos still exist, marketers increasingly manage a much more balanced and integrated marketing mix than in previous years. But there is still more to be done to raise the understanding of digital marketing techniques, and this remains the im- perative of a number of the marketers in the DIGITALFORUM. In a meeting in London hosted by Shell we investigated the options available, such as eLearning platforms and ‘MOOCs’ (Massive Online Open Course), to remotely upskill marketers based all around the word. Through discussion forums, research projects and smaller scale benchmarks we have covered a remarkable range of digital topics in 2014, but the two most recurrent themes have unquestionably been data and content. Data is the fuel that stokes the fires of the digital marketing ecosystem. But, more than ever before, the objective of marketers has been to apply insights from data to shape messaging and content to the context it’s appearing in. Relevance in marketing is achieved through applying the right content to the right person at the right time. Finding ways to do this was a recurrent theme in all the DIGITALFO- RUM meetings in 2014. Despite all the data that’s secreted from the pores of the internet, understanding the full journey that a consumer goes through, including all the touchpoints they interact with on their path to pur- chase remains a key challenge. A session hosted by Pernod Ricard in Paris focused on the techniques available to attribute credit to all the marketing channels in- volved in an online sale or action. With the rise of connected mobile devices, the Internet of Things and wear- able technologies, digital is truly moving DIGITALFORUM beyond our computers to occupy all parts of our daily lives. In a session in Copenha- gen hosted by Carlsberg, we heard from a guest speaker about the digital marketing opportunities on the horizon that marketers should be aware of. In spite of this trend, a study into global mobile marketing undertaken by the DIG- ITALFORUM found a number of barriers preventing mobile from reaching its full potential. Measurement, proof of effectiveness and resource were chief among these, but privacy also emerged as an obstacle, in a sign that marketers are increasingly cautious and respectful of consumers and their data. Participation and feedback from DIGI- TALFORUM attendees was strong in 2014, not least from our inaugural meeting in Singapore. We will be returning to Singa- pore in 2015 and in response to member demand and a growing network of digital specialists in the region we will also hold our first meeting in Hong Kong.
18 PEER-TO-PEER GROUPS Attendees 2014 Maryl Adler, PepsiCo Sarah Armstrong, The Coca-Cola Company Tigran Avakian, Mattel Qaiser Bachani, GSK AJ Baldo, Hershey’s Donna Baron, Boehringer Ingelheim Robert Bennemeer, Heineken Andrea Bottke, Danone Mary Ann Brennan, Mattel Katen Brown, IKEA Phil Cartwright, Jaguar Land Rover Celine Chauffeton, Danone Elaine Chen, Friesland Campina Henry Chen, Luxottica Wendy Chen, Philips Benson Cheng, AB Inbev Michelle Chin, GSK Terence Chua, Diageo Michael Connett, Intel Nadya Demyanovich, Unilever Felix Diaz, Reckitt Benckiser Melina Dong, Barclays Bill Duggan, ANA (US) Missy Feldman, SAP Emmy Flash, Boehringer Ingelheim Matilda Fong, Castrol Gianpaolo Gagliardi, Shell Carlos Gusman, Boehringer Ingelheim Jolanda Hafkamp, Philips Sarah Han, Unilever Debra Hedgecock, Mastercard Juliane Hefel, Henkel Stefanie Henko, GSK Hattie Ho, Unilever Thomas Holzapfel, Deutsche Telekom Jing Hou, UCB Pharma Darryl Junior, The Coca-Cola Company Heleni Kernkamp, Philips Dorien Koolen, Philips Alena Koshcheeva, GSK Lily Li, Diageo Joe Li, The Coca-Cola Company Kate-Sh Li, Unilever Jane Liu, Daimler Lucy Liu, L’Oreal Lilian Liu, Luxottica Amber Liu, Nestlé Sunny Liu, Nestlé Irene Liu, Philips Mano Manikkam, VISA Ivar Metman, Friesland Campina Nektarios Misios, Friesland Campina Debbie Morrison, ISBA Agnes Ong, KCC Yvonne Ong, VISA Sean O’Sullivan, Intel Lei Pang, The Coca-Cola Company Linda Peek, Friesland Campina Adam Popham, Danone Jeroen Preseun, Heineken Michael Pues-Tilkamp, Adidas Cherry Qu, Unilever Jill Rankin, Boehringer Ingelheim Christiane Rettig, Boehringer Ingelheim Sjoerd Ribberink, Shell Servanne Rignault, Nestle Fanny Rusli, Mattel Angela Saferite, AB Inbev Robert Sarasua, Luxottica Claudia Sargent, Danone Shirley Sha, Johnson & Johnson Sopan Shah, Nestlé Elsa Shean, L’Oreal Tony Shipway, Jaguar Land Rover Sarah Sim, Kimberly Clark Jo Smallbone, Vodafone Martino Stampanoni, Novartis Stuart Sueltman, Johnson & Johnson Suzanne Sun, Intel Steven Sun, Unilever Eileen Tan, Intel Khee Teo, Barclays Vicky Veloso, Johnson & Johnson Jessica Wang, Adidas Carol Wang, Boehringer Ingelheim Sandy Wang, Hershey’s Joy Wang, The Coca-Cola Company Ian Williams, VISA Echo Wu, Jaguar Land Rover Alan Xi, The Coca-Cola Company Vera Xia, GSK Lilian Xie, Johnson & Johnson Elaine Yan, BP Michelle Yang, The Coca-Cola Company Sherry Yao, UCB Pharma Katerina Zashcherinskaya, Barclays Els Zeeuwen, Friesland Campina Tim Zhang, Carlsberg Kathy Zhao, SC Johnson Veronika Ziegaus, Volkswagen FrieslandCampina, Amersfoort (The Netherlands), December
19 PEER-TO-PEER GROUPS From a very low basis ten years ago when this group was formed, we see now that around 95% of global marketers have a marketing procurement operation. The average time that this operation has been engaging with marketing spend is between six and eight years according to WFA research. Perhaps more important- ly, more than half of the most advanced sourcing teams in WFA’s membership employ staff with a background which includes at least five years in marketing. This expertise in marketing is crucial if marketing sourcing teams aspire to be the best they can be. Many of the discussions that have taken place in our meetings have focused on how procurement is measured. Much of the role of marketing procurement is about agency governance/lifecycle management. That means the pitching, negotiation, performance assessment and the remuneration of agencies. However, gen- erating savings is only a fraction of the value-add that the most forward-thinking marketing procurement teams can offer. Savings and cost-avoidance are important targets, but most marketing sourcing teams agree that they are a by-product of efficient business processes that procurement can help establish, rather than goals in and of themselves. Throughout the year, we have focused on a number of different marketing spend categories such as POS, Print, Events, Production, PR and Media. Procurement typically divides up marketing spend into these categories to enable them to source within a specific area of expertise. This matrix can be incredibly complicated and a challenge for the more advanced sourcing teams is that marketing does not look at spend in the same way. And nei- ther do consumers, hence the importance of integrated marketing communications. Some marketing sourcing teams have mirrored this view within their structures by reshuffling media into three areas of paid, owned and earned, for example. With over 550 marketing sourcing contacts from across the Americas, Europe and Asia, our SOURCINGFORUM is the largest global network of its kind. It fo- SOURCINGFORUM cuses on helping marketing procurement specialists skill up in terms of category management, champion the role and value of the function within the industry and help generate momentum with important internal stakeholders such as Marketing, Finance and IT. Agency remuneration is often listed as one of the most important priorities of this group, and notably in 2014, WFA published the first ever “Report on Global Agency Remuneration Trends and Use of Performance Metrics”. This research aims to help marketers understand ways to pay for different types of agency services, and on what basis the best reward their performance. It is through these types of initiatives that our global marketing sourcing network can show leadership in agency governance and rise to the challenge of helping marketers build more effective and fruit- ful partnerships with their agencies.
20 PEER-TO-PEER GROUPS Attendees 2014 Marco Aureggi, Ferrero Giorgio Caporusso, Ferrero Simon Cox, Johnson & Johnson Heather Curd, Mondelēz International Erica de Aquino, Johnson & Johnson Luis Enrique Gonzalez, Grupo Bimbo Yvan Goupil, SAB Miller Niels Hansen, Arla Foods Carlos Hernandez, Abbott Steve Hill, Jaguar Land Rover Russell King, Orange Adam Langridge, JLR Lars Lengler-Graiff, IKEA Laurence Miklichansky-Maddocks, Brown-Forman Beatriz Minamy, Nissan-Europe Libor Sedivak, Skoda David Torres, Shell Alexis Vernon, Barclays Gonzalo Viera, Carlsberg Nick Wright, BP Brown-Forman, London, September
21 PEER-TO-PEER GROUPS In 2014, WFA launched a brand new group for market research and consumer insights specialists, the WFA INSIGHTFORUM. As marketing budgets face increasing scrutiny worldwide, the role of consumer and business insights in helping marketers to make the right decisions becomes ever more important. At WFA, we have enlisted the support of our global network to identify specialists within our members who run, manage and support insights programmes around the world. Since its launch at the end of Q4, this new INSIGHTFORUM has attracted over a hundred individual members from across WFA’s network. The roles of these individuals vary from traditional market research to consumer insights and business intelligence generation. Our inaugural meeting in 2014 took place in London and brought together a number of these specialists to share, learn and exchange on their priority topics. The agenda started by covering the different ways insights are generated, including a focus on observational and behavioural research. We built on this by looking at some case studies on how insights can be validated through ‘real world’ market research approaches. The group also looked at the processes used so that insights can be engaged with and evaluated by marketers and agency partners alike. Finally, a major topic of discussion, and one that looks set to play a major role in the group’s agenda in the future, was how to take “big ideas” and transform them into deployable strategies within brand plans. During the first few months of this forum’s activity we have looked at the common challenges facing insights directors. In much the same way as in other WFA forums, it is these challenges that shape both the meeting agenda and the surveys INSIGHTFORUM that we conduct. Some of the recurring themes that we have heard relate to stakeholder adoption, notably the very natural tendency to only use insights if they confirm an existing point-of-view, or originate from a local market. Similarly, a challenge within insights teams is how to effectively leverage insights generated locally and scale them up to be applicable in other regions. The proliferation of data is another big challenge for insight directors, especially as modelling and analytics are cited as key components within business cases, but are not always easy to generate when justifying consumer behaviour in the real world. In 2015, this new group of WFA members plan to continuing the momentum generated in the last few months by conducting bespoke research for members on topics such as brand tracking, measuring customer satisfaction and social media listening.
22 PEER-TO-PEER GROUPS Attendees 2014 François Aubrée, TIE Marina Badlishah, Nestlé Ioana Banach Sirbu, EACA Jürgen Bänsch, ISFE Tudy Bernier, UNESDA Fiona Blinzer, ESA Alessandro Cagli, Ferrero Simone Ceruti, Danone Sylvie Chartron, Mars David Coleman, McDonald’s Marjolein De Kerf, Cosmetics Europe Manon Dias, EMMA Chiara Di Stefano, Ferrero Barry Dooley, AAI, Ireland Konrad Drozdowski, Rada Reklamy Jeanette Drielsma, GSK Cécile Duprez-Naudy, Nestlé Sebastian Emig, ESA Sue Eustace, Advertising Association, UK Alicia Gaban, ACT Christopher Garza, Kellogg’s Thomas Gault, Advertising Association, UK Renatte Georgescu, Unilever Oliver Gray, EASA Thibaud Guény, Groupe Bel Maryke Hanneman, ENPC Kristin Hannon, UBA, Belgium Rafaela Hartenstein, Hasbro David Hartz, LEGO Sadaf Hussain, egta Benjamin Inwood, Advertising Association, UK Wenche Jacobsen, ANFO, Norway Franz Kraus, Mondelez Amandine Labé, EMMA Julien Lafleur, Landmark Marieke Lugt, FrieslandCampina Raelene Martin, ICC Sophie Mestchersky, App Developers Alliance Nikolas Moschakis, European Publishers Council Chiara Odelli, EASA Julie Paquay, Landmark Andrea Parola, ICT Coalition Jaymeen Patel, Apple Jennifer Pearson, EASA Christiaan Prins, Unilever Antoine Quentin, AIM Rocco Renaldi, Landmark Martin Rupp, VDZ Mitchell Simons, Viacom Marta Sokol, ACT Jacqui Stephenson, Mars Ian Twinn, ISBA Catherine Van Reeth, TIE François-Xavier Vauchelle, Danone Wouter Vermeulen, The Coca-Cola Company Alberto Vivaldelli, UPA, Italy Astrid Williams, PepsiCo (Chair) WFA, Brussels, November
23 PEER-TO-PEER GROUPS Since 1996, the RAC has brought together brand owners, agencies and the media at a global level to anticipate and understand societal and parental aspirations regarding responsible marketing communications and children. RAC’s role in helping build trust is to provide global leadership by championing good practices in marketing communications to children. This exercise is shaped by a continuous dialogue and engagement with policy-makers, society and consumers. Spotlight on food marketing Food marketing to children continued to be a major challenge in 2014. Driven by the World Health Organisation and its regional offices, national governments worldwide have looked to adopt statutory limits on food marketing to children. In response, WFA worked closely with the International Food and Beverage Al- liance to develop enhanced global self- regulatory commitments in the field of food and non-alcoholic beverage marketing to children which were agreed and launched publicly in September. These commitments were replicated too by the EU Pledge group of companies at a Euro- pean level and were welcomed by the EU institutions as they were presented to the European Commission in November. The industry must now ensure these updated commitments are reflected in self-regulatory regimes in countries as diverse as Brazil, South Africa, India and China. Some good progress was made in 2014 but much remains to be done in 2015. In parallel, industry worked through APEC to achieve a significant milestone: the first ever endorsement of advertising self- regulation by Heads of State from the 21 APEC nations. This agreement kick-starts a three-year action plan led by WFA in trying to drive the adoption of effective industry-wide self-regulation across APEC countries. Digital Marketing and Children Digital represents the point where ethical concerns around marketing to children and those around public health in light of food marketing converge. In some countries, ninety percent of children pos- sess a mobile phone with Internet access while as many as sixty percent of under- fives have regular access to a tablet. Of course, the growing exposure of children to a “second screen” poses questions well beyond responsible marketing yet issues around privacy, online security and safety were a major focus for RAC in 2014 and will continue to be so in 2015. To address some of these challenges, WFA launched the Marketing to Children Road Test. It is an e-learning tool designed to identify the most sensitive and conten- tious marketing techniques with a view to helping brands stay ahead of the curve, avoid public or media criticism or, worse still, contravene regulations in relation to marketing to children. This initiative has been supported by toy and food marketers alike given that the public health debate around food marketing has reinvigorated the age-old Responsible Advertising and Children Programme ethical debate around marketing to children. Regulators worldwide are adopting and revising regulatory frameworks on marketing to children, whether in Brazil, China, Vietnam, Malaysia or Ecuador. RAC will have its hands full addressing these challenges as well as emerging debates, such as gender stereotyping, in 2015. Media Literacy The only long-term solution to so many of these policy challenges is education. Media Smart has been launched in nine countries so far in Europe and RAC is keen to drive further growth of the programme, help facilitate the exchange of best practice and materials between countries and champion the concept as a credible and effective means of equip- ping children with the skills to be media literate. In 2014, RAC facilitated the set-up of Media Smart World, which brings together existing national Media Smart secretariats. RAC has already conducted an audit of national programmes, identifying progress, perceived shortfalls and successes and core priorities for each market. In 2015, RAC will seek to respond to these priorities directly by broadening outreach to industry and non-industry stakeholders to raise awareness, help champion the Media Smart brand and facilitate growth at a national level.
24 PEER-TO-PEER GROUPS Attendees 2014 Loïc Armand, L’Oréal Didier Beauclair, UDA, France Katrine Bjerre Milling Eriksen, Carlsberg Pierre-Jean Bozo, Union of Advertisers (France) Simone Ceruti, Danone David Coleman, McDonald’s Sarah Cuvellier, LVMH Andrea De Gioia, Procter & Gamble Chiara Di Stefano, Ferrero Barry Dooley, Association of Advertisers in Ireland Cécile Duprez-Naudy, Nestlé Laureline Frossard, UDA, France Christopher Garza, Kellogg Company Caterina Geremei, LVMH Oliver Gray, EASA Rafaela Hartenstein, Hasbro Inc. David Hartz, LEGO Group André Hémard, Pernod Ricard Wenche Jacobsen, ANFO, Norway Dan Jaffe, Association of National Advertisers Inc (US) Franz Kraus, Mondelez International Julien Lafleur, Landmark Malte Lohan, Anheuser-Busch InBev Dominic Lyle, EACA Guilherme Monteiro Ferreira, GlaxoSmithKline Jennifer Pearson, EASA Christiaan Prins, Unilever Sandrine Ricard, Pernod Ricard Magali Sartre, Groupe Bel Piero Soave, Diageo Sibylle Stanciu, EASA Ian Twinn, Incorporated Society of British Advertisers Vincent Vandepitte, Procter & Gamble Alberto Vivaldelli, Italian Advertisers Association Astrid Williams, PepsiCo Andrey Zaytsev, Kraft Foods Inc. Muriel Zevaco, Groupe Bel WFA, Brussels, November
25 PEER-TO-PEER GROUPS The defining characteristic for 2014 was the increasing globalisation of policy challenges faced by brands when marketing in today’s society. Global challenges Data protection, profiling, gender stereotyping, ad misplacement, native advertising and a number of other areas received increasing attention from policy makers around the world. In response, we saw a growing appetite from WFA members to tackle these challenges in a coordinated manner. As such, self-regulatory responses to these challenges increasingly embraced this international dimension. One example was the strong progress that was made in promoting self-regulatory standards across the APEC region. As a consequence the Policy Action Group (formerly the European Action Group) evolved throughout 2014 to better reflect the global nature of the policy challenges being discussed; reaching out to countries and regions around the world to share and leverage challenges and best practice solutions. No digital without data Digital and data continued to grow in importance for brand marketing strategies with advertising investments moving towards search, video and mobile. This, in-turn, elevates the importance and indeed the risk posed by legislation which threatens brands’ ability to advertise re- sponsibly online. Data protection and privacy still pose the greatest challenge to the evolution of digital marketing. The European Data Protection Regulation, once implement- ed, will create the most comprehensive data protection legislation on the planet and, in is current state, casts doubt as to whether a proportionate solution to data protection will be achieved. WFA has advocated, since 2012, for a risk-based approach to data protection which recognises that different contexts and types of data should require different solutions. Progress is being made, but there is a long way still to go. Data protection is an excellent example of a global policy challenge. Data protection reforms took place in a number of countries around the world and the threat of data localisation laws were felt all the way from Russia to Brazil. 2015 will prove equally challenging and the Policy Action Group will coordinate WFA’s response to these international developments. Digital piracy 2014 also saw increasing political and business pressure on the advertising industry to stamp out the unintentional flow of ad spend to illegal or nefarious actors through ad misplacement. POLICY ACTIONGROUP The rapid uptake of programmatic buying across the globe, and the potential for reduced control that comes with it, meant that the risks of ad misplacement, both to brand reputation and the integ- rity of the industry, were broadly felt. Re- sponses by industry and government to this have so far been highly variable and sharing best practice in this field will be of upmost importance throughout 2015. Joined-up self-regulation One great example of joined-up self- regulation is the European self-regulatory programme for online behavioural advertising (OBA). The programme continued to grow in 2014, both in terms of signatories but also in the number of countries where it has been integrated into the self-regulatory organisations codes at a national level. The success of the programme will be critical in advanc- ing other self-regulatory solutions in the digital ecosystem throughout 2015. As we take a look around the world it is clear that, as an industry, we are facing global threats which must be tackled at the local level and in a coordinated manner. Anticipating threats and the timely dissemination of best practices will be critical to avoiding heavy-handed legislation and the promotion of self-regulatory alternatives in a fast-moving digital world.
26 PEER-TO-PEER GROUPS Attendees 2014 Jacqui Stephenson, Mars (Chair) Monika Agocs, SAB Miller Michael Aidan, Danone Elliot Antrobus-Holder, Barclays Jamie Bernard, Unilever Jane Blacklock, SAB Miller Rafael Bueno, Ferrero Dieter Carstensen, LEGO Muriel Codaccioni, McDonald’s David Coleman, McDonald’s Perrine Delahousse, Pernod Ricard Gael Demenet, Groupe Bel Chiara Di Stefano, Ferrero Isabelle Faggianelli, LVMH Mark Foster, Hasbro Helen Gourdin, Diageo Daniel Gurrola, Orange Srna Herzog, Diageo Leona Jacobson, McDonald’s Prashant Khera, GlaxoSmithKline Martin King, Kellogg Company Evie Kyriakides, Mars Hien Le, Hasbro Vinita Lenaghan, PepsiCo Orvokki Lohikoski, Microsoft Corporation Karen Mak, Hasbro Guilherme Monteiro Ferreira, GlaxoSmithKline Jeremie Moritz, Pernod Ricard Jaap Nellen, Ferrero Henrik Olsson, Johnson & Johnson Claudia Oudey, Pernod Ricard Caroline Perriard, Nestlé Valentina Pettenati, SAP Luc Poniewiera, Ferrero Ulrich Puerer, Red Bull Fabienne Puzenat Vincent, Groupe Bel Chris Schaumann, Microsoft Corporation Anna Sheard, Hasbro Sam Underhay, PepsiCo Roslyn Vadala, Nestlé Microsoft, London, June
27 PEER-TO-PEER GROUPS 2014 saw the opportune birth of WFA’s Digital Governance Exchange at a time when the protection of a brands’ reputation online has never been more essential yet, at the same time, more challenging. Throughout 2014, WFA witnessed an emerging confluence of three trends; the increasingly digital brand, the increasingly concerned consumer and the increasingly proactive policy-maker. The Digital Brand Firstly, brands continued to rapidly inte- grate digital throughout their marketing strategies. This saw the flow of ad spend moving into more intimate digital spaces, such as social and mobile. In addition, brands are overwhelmingly embracing big data strategies; investing in tools to better collect, store and derive insights from the global explosion of data. The consequence of this is that brands are now in control of more digital assets than ever, and this number is growing rapidly. Whilst this presents substantial opportunities it does not come without its share of risk. The Concerned Consumer Secondly, we witness mounting privacy concerns from consumers coupled with an increase in the number of consumer empowerment tools. That privacy concerns continued to grow throughout 2014 is perhaps unsurprising in a year which has been described as the “year of the data breach”. In December 2014, the Centre for Inter- national Governance Innovation (CIGI) published an international survey that found that 64% of the 23,000 people questioned are more worried about their privacy than a year ago. The Proactive Policy Maker Thirdly, we saw mounting pressure on governments to impose legislative con- trols in the online world. Greater societal concerns are manifesting themselves in the form of reinforced efforts from governments in finding ways to regulate the online world, most notably around the protection of people’s personal data. The Digital Governance Exchange The purpose of the Digital Governance Exchange is to allow peers to exchange solutions and best practice which help to reconcile, and in some cases reverse, these three emerging trends. The ambition is to ensure marketers are able to safely embrace digital by success- fully navigating a largely unregulated but increasingly sensitive environment, whilst protecting their brand reputation. Through 2014, the Digital Governance Ex- change covered topics ranging from good DIGITAL GOVERNANCE EXCHANGE data management and ensuring standards across third parties to how to stay safe in social and methods for enhancing consumer trust online. The meetings were attended by a combination of legal, marketing and communications specialists as it became instantly apparent that effective digital governance could not take place without engagement from all relevant business units. It’s all about trust WFA’s Digital Governance Priorities Sur- vey revealed a broad number of hot topics for 2015 but the number one priority identified by participants was enhancing consumer trust online and, in particular, within the data exchange relationship between brands and consumer. Trust will be crucial in reconciling the Digi- tal Brand with the Concerned Consumer. As such, a sub-group was created to look into practical ways in which brands can create meaningful transparency and consumer choice and better understand the value exchange between marketer and consumer in the online world. 2015 will be a challenging year for companies looking to safely explore and excel in the online environment but we hope through forums such as the Digital Gover- nance Exchange, WFA is helping its members to anticipate these problem areas, adopt solutions and better protect their invaluable reputations.
28 PEER-TO-PEER GROUPS Attendees 2014 Monika Agocs, SABMiller Mary Barazotto, Brown-Forman Anders Bering, Carlsberg Katrine Bjerre Milling, Carlsberg Stefano Fresi, Bacardi Gabor Garamszegi, SABMiller Rutger Goethart, Heineken Lindsay Graham, Bacardi André Hémard, Pernod Ricard Armand Hennon, Pernod Ricard Srna Herzog, Diageo Steve Leroy, AB InBev Malte Lohan, AB InBev Bob Rayner, Diageo Sandrine Ricard, Pernod Ricard Kieran Simpson, Heineken Piero Soave, Diageo Roland Verstappen, Heineken Kerry Walsh Skelly, Brown-Forman Rick Wilson, Bacardi
29 PEER-TO-PEER GROUPS Responsible Marketing Pact In an attempt to tackle the worrying phe- nomenon of underage drinking, and driven by the perception that harmful drinking is encouraged – amongst other factors – by the marketing of such products, the European Institutions as well as many EU Member States are increasing regulatory pressure on the marketing of alcoholic beverages. Several EU Member States have already strengthened existing laws on alcohol marketing. The European Commission is planning on including provisions related to marketing in its new EU Strategy to Support Member States in Reducing Alco- hol-related Harm. In 2012, against this challenging backdrop and as a contribution to help reduce underage drinking, the eight leading alcohol producers (Anheuser-Busch InBev, Ba- cardi Martini, Brown-Forman, Carlsberg, Diageo, Heineken, Pernod Ricard and SABMiller – together representing over 60% of EU alcohol ad spend) supported by their EU sector trade associations, set common standards and practices to mi- nimise minors’ access, appeal as well as exposure to alcohol marketing across all media. In June 2014, the Responsible Market- ing Pact (RMP), the first ever cross-sector self-regulation programme on alcohol advertising, was officially launched and presented to the European Alcohol and Health Forum, the multi-stakeholder platform created by the European Commis- sion to ‘debate, compare approaches and act to tackle alcohol related harm’. The RMP contains significant innovations such as a ‘standard alcohol profile’ on social media composed of key ‘safeguards’ to limit minors’ access to alcohol brands’ profiles, channels and pages on the main social networks. It also contains the first blacklist of prohibited creative features which these leaders commit to never representing within their marketing communications. The RMP is currently still in its launch phase. The results of independent moni- toring will be publicly shared with the Eu- ropean Commission as of 1st June 2015. International Alliance for Responsible Drinking (IARD) 2014 also marked the launch of the Digi- tal Guiding Principles (DGPs), the first global set of guidelines for responsible digital alcohol advertising. As part of the Beer, Wine and Spirits Pro- ducers’ Commitments to Reduce Harmful Drinking, thirteen global alcohol leaders (Anheuser‐Busch InBev, Bacardi, Beam ALCOHOL MARKETING Suntory, Brewers Association of Japan, Brown‐Forman Corporation, Carlsberg, Diageo, Heineken, Japan Spirits & Li- queurs Makers Association, Molson Co- ors, Pernod Ricard, SABMiller and UB Group) have committed to developing a set of global guiding principles for alcohol beverage marketing in digital media. With this in mind, the International Alli- ance for Responsible Drinking mandated WFA to design and help publicly launch these DGPs. For a year, WFA in partnership with IARD and a taskforce composed of digital experts from a wide range of these companies, worked on these digital guidelines and achieved a final agreement with sign off from all signatory companies. Using digital platforms to promoting responsible drinking, protecting minors from being exposed to online alcohol advertising and ensuring brand owners respect users’ privacy, these DGPs provide tangible guidelines for responsible alcohol advertising globally and across all digital platforms. In September 2014, the Digital Guiding Principles were officially launched in New York City in front of a high-level panel of experts, including a representative of the US Federal Trade Commission.
30 WFA EVENTS 2014 Sydney played host to the WFA Global Marketer Week in March 2014. WFA teamed up with its local member, the Australian Association of National Advertisers (AANA) to put on a week of events, the showpiece of which was the Global Marketer Conference. Bringing together over five hundred delegates from over thirty countries, it featured a star-studded line-up of speakers from the global marketing industry. WFA President and CMO at Pernod Ricard, Martin Riley, advised brands on how they might avoid “Tahrir Square” or “Wikileaks” moments in an age of ultra-connectivity and transparency while Senior Vice President of Marketing at Unilever, Marc Mathieu, explained why a brand without a purpose is “just another billboard” and why the concept of ‘consumer’ is now dead given people no longer accept being treated as a consumer or target audience. That said, “we are much less individual than we’d like to think and much more influenced by others than we’d like to admit,” commented BrainJuicer’s, John Kearon, as he put the audience through their paces to prove his point. “We think much less than we think; decisions are driven by emotion, instinct and intuition.” Sir John Hegarty agreed. Marketers need ideas to be inclusive; they should always elicit an emotional response and look to inspire. He reminded the audience that looking at the history of marketing, the work that wins is work that tells the truth. “Marketer must move from creating a myth and telling it, to finding a truth and sharing it,” added Mathieu. Kearon conferred: “It’s still about great stories, being meaningful and engaging people as social animals.” “There’s nothing more valuable than people feeling like they have a stake in your brands,” chimed Ed Sanders, Head of Marketing at Google Glass. CEO of Adidas Greater China, Colin Currie, conjured an intricate and comprehensive overview of the differences in Chinese consumers and cultures, reminding marketers that a one- size-fits-all approach to marketing in China won’t work. Acer CMO, Michael Birkin, offered compelling insight into engaging millennials, a category with $2.45 trillion spending power: get it right and 8 in 10 millennials will take action on behalf of a brand they can relate to! How to be a successful marketer in the future? Clearly a mixture of purpose, authenticity, transparency, agility and in-depth Global Marketer Week Sydney Marc Mathieu addresses the Project Reconnect session insight. Or as James Thompson, Global Managing Director of Diageo Reserve, put it more simply: “a mixture of humility and conviction.” As always, the Conference was complemented by a number of public events, including the annual Contagious Inspiration session hosted by Google, a great opportunity to look into the most cutting-edge and innovative trends at the intersection of communications, technology and culture. The Project Reconnect (www.project-reconnect.org) session, held in an intimate bar setting on Darling Harbour, gave stage to We Are Social who presented the results from WFA research on what makes today’s greatest brands and what do their commonalities tell us about the future of marketing? The answer? Four new Ps: people, purpose, principles and participation. A panel of senior marketers from Pernod Ricard, Kimberly Clark and Unilever responded to the findings, the latter concluding that “there is a new value exchange that is happening before our eyes. People are taking over the creation of marketing.” WFA member meetings were held throughout the week, including the Executive Committee, the Annual General Meeting at which the WFA Officers were elected and the National Associations Council which brings heads of national associations together to share insight and exchange best practice in terms of membership and management and best representing the interests of marketers at a national level.
31 WFA EVENTS 2014 Marc Mathieu, SVP Marketing, Unilever Sir John Hegarty, Founder, Creative, Bartle Bogle Hegarty (BBH) Ed Sanders, Head of Marketing, Glass, Google James Thompson, Global Managing Director, Diageo Reserve John Kearon, Chief Juicer, BrainJuicer Colin Currie, Managing Director, adidas Group Greater China
32 WFA EVENTS 2014 On June 24-25, WFA co-hosted its 11th Annual Latin America Regional Meeting together with the Panama Advertiser Association(ANDAPanama)inPanamaCity.Theforumbrought together experts from WFA’s National Advertiser Associations from Argentina, Brazil, Chile, Guatemala, Panama, Paraguay, Peru and Uruguay, as well as senior corporate members from companies with activities in the region. Presentations and discussion topics included public affairs issues relating to responsible food marketing, marketing to children, alcohol marketing and data collection and privacy. Marketing- related topics included a session on insight generation where BrainJuicer presented on how brands can use behavioural science to move away from a persuasion-based model of marketing and embrace a seduction-based model instead. A focus was also given over to media auditing in Latin America and included external speakers from MarketShare on how to better understand ROI from marketing investment and media auditors, IBOPE, on best practice in the field of media audience measurement. The meetings finished with a WFA-led session on media agency remuneration. The two day event was chaired by the new WFA Regional Vice-President for Latin America and Senior Vice-President of Marketing at Grupo Bimbo, Javier Medrano. The 2015 meetings will be hosted in Grupo Bimbo’s offices in Mexico City. Latin American Regional Meeting Panama City
33 WFA EVENTS 2014
34 STAFF Stephan Loerke Managing Director Stephan manages the WFA secretariat, oversees all work carried out on behalf of its members and is the WFA’s main spokesperson. He sits on all WFA public affairs and marketing committees, as well as on the WFA Executive Committee. Prior to joining WFA, Stephan worked at the United Nations in New York and later in both marketing and management roles at L’Oréal. Combining French and German nationalities, Stephan speaks French, German, English, Dutch and Spanish. Matt Green Senior Manager Marketing Communications Matt is responsible for the delivery of research, benchmarking and consultancy services to the WFA MEDIAFORUM and DIGITALFO- RUM and for setting the agenda, for discussion and approach, to core global media and digital issues. As well as providing services to brands based in Europe and North America, Matt is facilitating the expansion of the network into China and India. Matt is a British national and has had the pleasure of working for global clients as media agent with MediaCom and as client lead with two media management consul- tancies, including Ebiquity. Any Ung Marketing Communications Manager After five years working on the agency side, Any joined WFA’s marketing team in 2010. She leads the IMCFORUM, setting the group’s agenda, facilitating benchmarking and peer research and expanding the IMCFORUM’s global footprint. Her responsibilities also include the management of the CMOFO- RUM and WFA’s strategic partnerships, as well as the organisation of a number of events, such as the annual Global Marketer Week and webinars on priority marketing topics. A French national of Chinese ori- gin, Any speaks French, English, Spanish and Cambodian. Robert Dreblow Head of Marketing Capabilities Robert leads the WFA’s marketing communications team. His focus includes championing member priorities at the WFA and industry events, keeping members updated on key trends and overseeing peer groups for integrated marketing communications, media, digital marketing, insights, sponsorship and marketing procurement. Prior to joining the WFA, Rob- ert was an Associate Director at MediaCom where he spent eight years split between London and Toronto. Steve Lightfoot Senior Manager Global Marketing Procurement Steve has been with the WFA for eight years and manages a global group of over 450 marketing procurement contacts, as well as the INSIGHTFORUM, launched in 2014. Steve offers bespoke consultancy to this network and is facilitating delivery of services to Asia-Pa- cific and Latin American-based sourcing contacts. Prior to joining WFA, Steve com- pleted a research Masters in marketing at the University of Leeds. Originally from the UK, Steve speaks French and English. Adam Gagen Director of Legal & Public Affairs Adam oversees WFA’s public affairs work, including relations with international organisations and the European institutions, to help members manage their strategic response to policy challenges. Before, Adam spent five years in Hong Kong managing Pernod Ricard’s public affairs agenda (regulatory affairs, alcohol policy, CSR). Prior to that, Adam worked at the European Commission on trade and political relations between the EU and China/ Taiwan. Educated in the UK and US, he has lived in Brussels, Shanghai, Taipei, Beijing and Hong Kong. Will Gilroy Director of Communications Will joined the WFA in 2002. He oversees all WFA communications and public affairs work on food marketing and marketing and children as well as the organisation’s regional activities in Latin America and Asia-Pacific. Since 2012, he has been based in Singapore. Prior to the WFA, Will was a press and TV journalist working in France, UK and Spain for clients including ARTE, Channel 4 and The Times, London. A Brit- ish national, Will is a graduate of Modern Languages from Oxford University and speaks French and Spanish.
35 Chris Payne Public Affairs Manager Chris joined the WFA in 2013 and is responsible for leading advocacy work in relation to digital advertising. He represents the WFA within the European Inter- active Digital Advertising Alliance and manages the Policy Action Group and the Digital Gover- nance Exchange. Previously, he worked for a Lon- don-based public affairs consultancy, in public affairs and communications roles at CEMEX and General Electric and as an adviser in both the UK and European Parliaments. Karine Lesuisse Office Manager Karine has been the first point of contact for all WFA members for many years. She is responsible for the back office, the everyday running of the secretariat, per- sonnel and finance issues. Theresa and Karine work in tan- dem for all administrative issues and support each other for meeting logistics. A Belgian national, Karine speaks English and French. Martin Mycielski Database Manager Martin started his career in Po- land, first in politics and then managing his own company. After moving to Brussels he ran an MEP office at the European Parliament, co-organised the Pol- ish EU Presidency and managed REACH consortia at McKenna Long & Aldridge LLP. Martin holds a joint Master’s De- gree in Diplomatic and Business Protocol, Foreign Relations and Event Organisation from univer- sities in Madrid and Brussels, having previously studied Iberian Culture and Management in War- saw. He speaks English, French and his native Polish. Theresa Ruess Member Relations & Event Coordinator Theresa joined the WFA in 2010. She supports Karine in running the office and is in charge of the logistics for all WFA meetings and events, including the WFA Global Marketer Week. A German national, Theresa speaks German, Dutch, English and French. Camelia Cristache Communications Manager Camelia joined the WFA in 2014 to work on WFA’s internal and external communications, while also managing the WFA network of national advertiser associations on six continents. She has previously worked on the consultancy side in Bucha- rest and Brussels for ITC, health- care and pharma, energy, banking and FMCG companies as well as being Communications Adviser to a Vice President of the European Parliament’s largest political group. Camelia has a Master’s Degree in New Media from Vrije Universit- eit Brussels and speaks English, French, Italian, as well as her native Romanian. Paola de la Baume Public Affairs Manager After four years as a parliamen- tary assistant and campaign chief for a member of the French Na- tional Assembly, Paola joined WFA’s public affairs team in 2012. She leads WFA’s advocacy work on alcohol-related issues. Paola is also a lecturer at Science Po Paris in the second year of the Master’s programme in Market- ing Communications. A French national, Paola speaks English, French, Italian and Span- ish and graduated from Science Po Paris. Natalia Echeverri Knowledge Manager A Colombian national, Natalia joined the WFA as Knowledge Manager, a new role focused on delivering remote knowledge exchange created in response to the WFA’s expanding membership. She has seven years work experience at MillwardBrown in Co- lombia, in retail marketing with a Chilean Department Store in both Chile and Colombia and in digital marketing at Henkel in Germany. Natalia initially moved to Europe for a Master’s Degree in Inter- national Marketing in France and then relocated to Brussels. She speaks Spanish, English and French. Abtin Kronold Public Affairs Manager Abtin joined the WFA in early 2014 to work on food marketing to children and to coordinate the Responsible Advertising and Children Programme. Prior to the WFA, Abtin worked at Facebook as EU Policy Coor- dinator as well as a legal consul- tant to the European Commis- sion. Between his degrees, he worked as a membership officer at the International Chamber of Commerce (ICC) in Paris. He holds a Swedish L.LM and a joint Master’s Degree in EU Law and Policy from four partner uni- versities in France, Italy, Spain and Poland. Abtin is an Iranian- Swede national and he is fluent in English, French, Swedish, Ital- ian and Farsi.
36 THE CONTAGIOUS DECADE: A PRIMER A is for Apple. The transformation of Apple from technology also-ran to the world’s most valuable brand has been a defining obsession across ten years of Contagious. In so many ways the an- tithesis of open ‘for everyone’ internet culture, the company and its superbly polished works have established a set of standards for user experience that have fundamentally altered our expectations of, and relationship with computers. Be- stowing a sense of agency and mastery over our gadgets even while edging us further away from a true understanding of how stuff works, the Cupertino corporation has handed us the keys to an ex- pertly enabled world of communication, community and commerce. A world that reflects our new normal: where A is also for Always on, for Apps and Algorithms and APIs. A world that can incubate the Arab Spring and Anonymous. A world with Amazon and Alibaba in the ascen- dancy. And then, of course, there is An- droid. While Apple’s iOS-running mobile devices rule the high end of the market, in less than a decade Android has become the people’s choice, the de facto operat- ing system du monde. But even with 85% of smartphones shipped this year running Google’s software, the race to run the world is still a long way from being over. A is also for alliteration: brace yourselves for B… THE PAST TEN YEARS HAVE BEEN A GLORIOUS MASH-UP: EVOLUTION AND REVOLUTION IN EQUAL MEASURE, A CLUMSY BUT EXHILARATING WALTZ INTO OUR UNEVENLY DISTRIBUTED, PLATFORM-AGNOSTIC AND RELENTLESSLY ACCELERATING FUTURES. BEFORE WE SALLY FORTH INTO A FITTER,FASTER UNKNOWN,A LITTLE ORIENTATION SEEMS IN ORDER: LOG OFF, LEAN IN AND PORE OVER OUR ATTEMPT TO IMPOSE NEATLY ALPHABETISED ORDER ON THE CHAOS OF THE CONTAGIOUS ZEITGEIST. B is for Broadband, benevolent bearer of bandwidth, the better to support the binge-viewing of Breaking Bad. As a basic component of our communication infrastructure, broadband penetration has delivered benefits above and beyond our basic old-school telecoms needs. Described as a fourth utility after water, heating and electricity, in 2009 the World Bank put it thus: ‘Broadband is not just an infrastructure. It is a general-purpose technology that can fundamentally re- structure an economy.’ That was true even before 2008 became the year of bra- vado-and-bullshit-fuelled banking balls- ups, but possibly even more necessary in its aftermath. The letter B has also brought us BYOD (Bring Your Own Device), an alternative to clunking, employer-issued tech; Bitcoin, an alternative to clunking, centralised currency; Beacons, a nascent alternative to clunking, irrelevant marketing; and BuzzFeed, an alternative to clunking, text- heavy news and entertainment. C is for Cats. Pictures of cats. Cat memes. Cat videos. Really, though, the rise of cats is simply the cute, furry face of the rise of Content in all its guises. The creation, curation, circulation and consumption of material and messages is booming as the tools of production and channels of distribution become ever more accessible. Simultaneously, however, attention is a resource in effective decline, no matter how diligent our multi- screen multi-tasking becomes. Coming up with content that can compete on merit against everything else out there is ex- actly as hard as it sounds, and the brands that are doing it well are few and far between. Ten years ago, the ‘C-word’ was Conver- gence; at the beginning of Contagious it was hypothetical, a talking point. Now we’re living it: untold functionality and utility is telescoped into devices that are seldom beyond arm’s reach, and the evolution of consumer electronics continues to be fascinating. Somehow, though, we don’t seem to have any fewer gadgets: the ‘Peak Stuff’ story of late 2011 may have been a false dawn. Peak cats? No- where near. Special mention to the Crowd: some kind of ‘Many Hands Make Light Work’ award seems appropriate, although more for contributions to art and science than to marketing. You shall all receive one mil- lionth of one percent of one hand clap- ping. And the gong for storage is meta- phorically awarded to the Cloud, even if, as the Daily Mail recently clarified, it is ‘not an actual cloud’. D is for Disruption. Or should that be Disintermediation? Or maybe even De- mocratisation? The combination of Digi- tal technology and hot and cold running Data is driving the re-imagination of en- The Contagious Decade: a Primer
37 THE CONTAGIOUS DECADE: A PRIMER tire business categories, with music and publishing the canaries in the coal mine for other established businesses trying to weather the revolution. Distribution is also up for grabs: if your product can be broken down into zeros and ones, there’s the internet. For everything else there’s Drones and Driverless cars. But top dog among the Ds is Design, the discipline and rigour that’s informing the ongoing over-haul of our world and the organisations and objects in it. Design has become more holistic, a strategic as well as an aesthetic factor and increasingly an open and inclusive process too. E is for the era-defining Economy, dragged down as banking revealed itself to be not so much a system as a sink-hole, caving in under exponential entropy and its own preposterous lack of substance. It’s for Ecosystems, slick, self-serving, habit-forming, loyalty-locking walled gar- dens of blissfully consistent UX. It’s for Empowerment, especially in the rapidly emerging nations (more MINT, less BRIC) leapfrogging established tech infrastructure and cutting straight to the chase with mobile. E is for Experience, a new preoc- cupation throughout this industry and beyond. For Experimentation because we can, and, more prosaically, for Email, an era-defining communications epidemic that even the Emoji has yet to eclipse. F is obviously for Facebook, not so much the social network of choice as an internet-age equivalent of the phone direc- tory: most of us are in it, and if you’re not, it’s a bit of a statement. Undeniably useful (as sounding board, stalking appa- ratus, as authentication/universal login), Facebook has attained a degree of ubiq- uity that is now its best defence against rival platforms. Wherever it happens, though, our online flocking together is fuelling the uncanny acceleration we feel across so many aspects of our lives. The simmering culture of Fear, the Filter- bubbles and the Fan culture: everything from Fifty Shades’ flights of fan-fic fantasy to the mainstreaming of Festivals feels connected to our increased exposure to, well, everything. G is for Google, not only the front door to the internet, but also a company of global consequence with an ambitious tendency to reach for the stars (OK, the moon) and fingers in dozens of different digital pies. But G is also for also for Games of every conceivable stripe. Against a thoroughly dispiriting backdrop of Globalisation, the GFC, and the growing Gap between rich and poor, the huddled masses have been keeping their spirits up with regular doses of racy fantasy epic Game of Thrones, the most-pirated TV show ever (see also Tor- renting). Gaming in all its guises has also become ever-more pervasive, an under- acknowledged fact thrown into relief with the release of Grand Theft Auto V, which earned $1bn in three days flat, faster than any other entertainment product, ever. We also have gaming to thank for the gift that is Gesture-control: what started with the Nintendo Wii quickly opened up a whole new world with Kinect, now sensitive enough to track players’ heartbeats through the pulsing of their skin. But as sophisticated as Gaming has become, we’re still suckers for animated GIFs. H is for Hype Cycle, Gartner’s handy graphic tool for mapping the maturity, adoption and social application of specific technologies. So we know, for example, that Haptics (aka tactile feedback technology) are currently climbing the Slope of Enlightenment, while Head-mounted displays are sliding into the Trough of Disillusionment. Fun, isn’t it? What if we could measure the ebb and flow of con- temporary life in the same way? Harry Styles: Peak of Inflated Expectations. Hipsters: Trough. In reality our non-tech hype is measured in Hashtags: at one end of the human-endeavour spectrum the Higgs boson discovery got the world talking about physics, topping the trend- ing list on Twitter on July 4, 2012; at the other, Hacking has made the top ten with depressing regularity. I is for Image Explosion. If you’re more Instagram than Internet of Things, this is for you. At the end of last year, Yahoo! estimated that 880 billion photos would be taken in 2014, 123 for every man, woman and child on the planet. Self-contained cameras are fewer and further between, but combine smartphones and social platforms with an exponential rise in storage capacity, and Lo! a new visual language is born, and anyone can speak it. Expertise is not the point: the ability to shoot and share something important, or interesting or pertinent is. The upshot is that pictures have not only helped to define and document the past few years, they’ve de- veloped (retro-pun!) into a kind of social currency and visual shorthand that fuels and fosters communication on all levels. J is for Justin, Jay-Z, Jobs, a series of names of varying significance. Justin Bieber gets a shout for becoming one of our first, and most unavoidable You- Tube stars, inspiring a surge in sales of hair products for young men; Jay-Z gets a shout for sound-tracking the zeitgeist and for a preternatural understanding of branding that’s allowed him not only to embody authenticity, but to confer it on a roll-call of brands – Reebok, HP, Budweiser, Heineken, Jaguar, Samsung – without denting his own apparently bot- tomless appeal; and of course, there is – was – Jobs, Steve Jobs, visionary, game- changer and a whole other kind of icon.
38 THE CONTAGIOUS DECADE: A PRIMER K is for Knowledge, and the changing relationship we have with it. Access to information is a transformative thing. Samuel Johnson said: ‘Knowledge is of two kinds. We know a subject ourselves or we know where we can find information upon it.’ He was talking libraries, but the effect of the internet has upped the ante by another order of magnitude: a whole generation, when confronted with a gap in comprehension or savoir-faire, reflexively knows they can Just Fucking Google It. Or pick up a Kindle. For those who don’t au- tomatically turn to the internet, a pitying digital native is usually on hand with an eye-roll and a smartphone to help them out. From Kimye to Kahneman, from K- pop to Kale, it is getting easier to know stuff. But it is getting harder to explain to your kids why school and homework still matters. L is for Learning. The acquisition of knowledge and skills is a long way from being irrelevant, in fact it’s booming as people around the world sign up in their millions for tutorials, classes and qualifications of every conceivable type. The increasing availability of MOOCs, or massively open online courses, is offering unlimited participation and open access to some of the most respected educators and academic institutions in the world. The power of learning has not been lost on brands and business, and the proliferation of Labs in recent years is no coincidence. Test and Learn, Lean in, think global act Local and love thy LGBTI neighbours: that’s how it gets better. (Also, read things that are longer than a Listicle.) M is for Mobile. It’s so obvious we shouldn’t even have to say it. Every year as far back as we can remember has been The Year of Mobile, and yet it never quite seemed to be true. Can we stop now? It’s just how we do stuff. It’s becoming a Meme, but more in the original Richard Dawkins sense than the ‘I can haz cheez- burger’ sense. Our collective conscious- ness is gradually optimising for mobile. It may take another Moonshot to get us beyond that… N is for Netflix, feeding our need for the next movie, the next episode and the next season with all-you-can-eat dedication to our appetite for more of that thing that we love. Thank you Netflix. It’s easy to forget that in return we’re feeding Netflix the data it thrives on, from which it can deduce how better to serve – hell, even to create – more of what we crave. There are other Ns to consider: the impact of the Network Effect; the rise of Nationalism; the self-conscious ordinariness of Norm- core; the not-quite-there-yetness of NFC; And Thaler and Sunstein’s Nudge theory, subtly engineering choice architecture to alter behaviour, to wit: ‘Nudges are not mandates. Putting fruit at eye level counts as a nudge. Banning junk food does not.’ Which brings us to O. O is for Obesity. The World Health Organ- isation defines obesity as ‘excessive fat accumulation that may impair health’, a condition signified by a Body Mass Index of more than 30. According to the Ameri- can Medical Association, two thirds of the US population is overweight, with 36% of adults clinically obese. In the UK and China, a quarter of all adults are obese; in Russia the figure is 23%; Brazil 15%. The epidemic claims the lives of 2.8 million adults per year, making it the fifth most common cause of death globally. The Trust for America’s Health and the Robert Wood Johnson Foundation have predicted that more than half of the US could be obese by 2030, costing $66bn in treatment and at least $500bn in lost economic productivity. Gulp. Or should that be OMG? We have less depressing Os: On-demand (see also Netflix), Open Source, O.Ba.Ma. Occupy. Oversharing. Damn, we were doing so well… Wait: OK Go! ‘OK Glass…’ Gah. P is for Privacy. A lot has happened over the past ten years, but as blithely as we adopt, early or otherwise, the shiny gadgets and devices of the new millennium, we are still easily creeped-out when confronted with the tales they tell on us. Ban- ner ads for stuff that we’ve looked at – or already bought! – follow us around the internet. We’re routinely asked to sign away our data in language that obscures rather than clarifies the reasons why that should be necessary. Research by GfK found that 80% of consumers surveyed wanted more regulation to protect their data privacy and less than 40% trust marketers with their personal data. That’s bad enough in the smartphone era, but the more connected our daily lives become (and Cisco predicts the Internet of Things will see 50 billion objects hooked up to the internet by 2020), the more necessary clear and reasonable communication becomes. Why is this not a ‘Purpose’ issue for more brands? Stay tuned. Q is for QR codes. The optimistically named Quick Response Code has been both a blessing and a curse. Its success in Asia has failed to herald its embrace in Western markets where it continues to be the weakest link in many a marketing campaign. Let’s move on. Quantified Self. The proliferation of sensors, data and the devices and software to gather and process a relentless stream of information has gifted us the ability to be self- obsessed aware in mind-boggling detail. QS might seem, well, selfish, but really it’s the beginning of quantified everything. Yes, it is profound and amazing, just spare us the details, okay? R is for… Reprise! (to the tune of We Didn’t Start the Fire) Rise of the extreme right, renewables, real-time Reviews, roll- ing news, reality TV Recession, Raspberry Pi, riots, robots, Rockefellers switch from oil to cleaner energy We didn’t start the fire… S is for… (keep it going…) Selfies, sharing, screens, space, Snowden Storytell- ing, Stuxnet, Silicon Valley, Second Life, streaming, Shenzhen, Soylent Same-sex marriage, sustainability We didn’t start the fire…
39 THE CONTAGIOUS DECADE: A PRIMER Extracts from the Con- tagious X magazine are reprinted courtesy of Contagious Communica- tions limited. Contagious provide marketing communications insight and intelligence for brands, through consultancy, online and print based resources and events. To find out more, visit contagious.com. T is for TED, and for TED Talks, a theat- rical, time-limited format for spreading ideas with impact – a bit like WikiHow, but slightly less practical. Twitter performs a similar idea-and-information dissemination function, but with greater economy and a lot more Trolling. Ideas don’t have to be good to spread, though: Tea Party, take a bow. They also don’t have to be obvious: who’d have thought Twitch.tv, the internet equivalent of sports TV for gam- ers, would become a thing (acquired for $970m by Amazon, beating Google to the deal)? Ideas don’t have to rely on Touch- screens: feature phones are transforming lives across the developing world. And they don’t have to be the brainchild of billionaire Tesla founder Elon Musk, but it sure does help. For content, of course, we have Torrenting. U is for User, as in User-friendly and User experience, but also in the wider sense as in You, the consumer, now enthroned at the centre of the business universe thanks to quotes like this from Jeff Bezos: ‘Above all else align with customers: win when they win, win only when they win.’ It’s worked for Uber, the ride-sharing under-dog-turned-undisputed-champion of transit disruption. In startup culture, every new venture wants to be the Uber of something, but if we had to stand shoulder to shoulder with one U-related service provider it would be Kenya-based Ushahidi Inc. The non-profit has grown from crisis-mapping to providing open- source tools and software, focusing on innovation and problem-solving on a social scale. Genuinely Upworthy. V is for video, because although software may indeed be eating the world, the world is too busy watching videos to really give a damn. Omnicom recently advised its clients to shift as much as 25% of their TV budgets to online video, and this year eMarketer predicted that spending on online video advertising will overtake TV ad spend as early as 2018. From six- second Vines to the latest ubiquitous vi- ral, Video has eclipsed Voice-control, Vir- tual Reality, Vampires and the curiously disturbing rise of Vaping and Vice. It is a Very. Big. Deal. Welcome to the home stretch… W is for Wearables, because frankly, what could possibly compete? Not the wane of Windows. Not even the wonder of wifi. Not the diligently updated wisdom of Jimmy Wales’ Wikipedia, because we take it for granted and laugh at it when it’s wrong, even though it is a marvel of endeavour and collaboration. And not Wikileaks because even if information wants to be free, we’re not totally convinced that it should always get its way. But everyone loves Wearables, right? Whether that’s true now is not really the point: whether it’s true in the next ten years is way more important. Apple’s famed capacity to create new markets means a lot is riding on the success of its Watch. X is for… Cut us some slack: X is tricky, we’re tired, and all we could think of was The X Factor and the XPRIZE (which really is spelt like that, we checked). One is a pitiless singing contest that humiliates the desperate for easy LOLs; the other is ‘a highly leveraged, incentivised prize competition that pushes the limits of what’s possible to change the world for the better’. The best thing is, we don’t have to choose, we live in a world where these things can happily co-exist. So. Our final desperate stab at X is a rallying cry to bearers of the XX chromosome: women. If there is one thing that’s even less even- ly distributed than the future, it’s equal- ity of opportunity, rights and respect for women. Over the past ten years at Con- tagious we’ve witnessed a steady building of efforts to redress the balance in all kinds of ways, some branded (Coca-Cola 5 by 20), some not (Slutwalks). All chipping away at a big, but fixable problem. Y is for YouTube. From ‘Yes we can,’ to YOLO, nothing has captured or embodied the spirit of the Contagious decade quite like YouTube. Now all the world really is a stage, with no subject too big, no camera work too shaky, no moment too trivial to record and share. And this epic and yet curiously personal platform has created a new generation of players: avidly followed stars of the small glowing screen, racking up subscribers in the millions, viewcounts in the billions and the kind of revenue that make their parents feel okay about how much time they’re spending in their bedroom. Felix ‘PewDiePie’ Kjellberg is currently the master of this oddball universe: a passion for providing first-person commentary on his video-game exploits has parlayed into 30 million channel subscribers, a total viewcount in excess of 6 billion, and in- come north of $4m per annum. A player par excellence. YouTube is both the greatest and most terrifying show on Earth. Good thing we like to be scared… …Because Z is for Zombies. AMC’s premiere season five of The Walk- ing Dead broke cable records with 17.3 million viewers tuning in for a fix of gore, violence and life-or-undeath struggle. If YouTube brings us face to face with the world at its most human, the flipside is our unsated appetite for tales of the Zom- bie apocalypse. The subject of TED talks and TV shows, novels and Guardian think-pieces, zombies are variously described as a response to the rise of atheism (novelist Stephen Marche), a metaphor for consumerism, and ‘always double, a symbol of fail- ure and success, slavery and rebellion’ (Professor Sarah Juliet Lauro). In other words, an endlessly versa- tile metaphor for the overwhelming churn of unsettling cultural circumstances and pos- sibilities that define our lives now – and an entirely appropriate response to an era of change like no other. We live in interesting times. Every day might feel like the end of the world as we know it, but mostly we feel fine. Ten more years!
40 AD OUTLOOK AND DATA Digital comes of age Taking a long-term view of individual media, the big story of the past decade has been the inexorable rise of online advertising. Search, social and display ads – whether served through desktop, tablet or smartphone – have now become an indispensible part of the typical marketer’s repertoire across the world. Comparative Warc data from 2005 and 2015 highlight this seismic shift. From taking just a 6% share of global adspend a decade ago, online is forecast to account for 29% this year. In context, this is now almost equal to the combined adspend share of print, radio, cinema and outdoor advertising (31%). Only TV will take a greater proportion of ad dollars this year, though at a share of 40% for 2015, this channel is likely to remain the largest for many years to come. Globally, internet has been the fastest- growing channel for much of the past decade, and is forecast to increase by +16.3% in 2015; TV, by way of comparison, is predicted to expand by just +2.2%, while Latest forecasts from Warc suggest that global adspend growth will accelerate over the years to 2016, though a slowdown in the broader economy could have a negative impact on the industry. This year, Warc expects an increase in adspend of +4.8%, slightly higher than 2014’s estimated expansion of +4.3% and taking the value of the global ad market to $559.9bn for the year. In 2016, the rate of global growth is set to rise to +5.4%, underpinned by a strong performance from both emerging economies and North America. Warc collates actual advertising expenditure for 88 markets, and has produced forecasts for key markets for 2014–16. Using a combination of adspend data and broader GDP forecasts from the OECD and IMF, we set out below some current ad industry trends. Net growth will be recorded for all regions in 2015, with the pace of expansion fastest in Latin America, up +9.7% from 2014. In terms of dollar value, the greatest growth will be seen in Asia-Pacific, up +6.6% year on year to $166.8bn; North America will maintain its position as the world’s largest ad region, however, rising +3.8% to $183.6bn. While still recording a net adspend expansion for the year, Europe remains the worst-performing global region, rising +2.6% to $155.6bn. Global advertising spend & economic outlook, 2014-2015 0 100 200 300 400 500 600 700 -15 -10 -5 0 5 10 15 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Yr-on-yr (%) change (Bars) US$ bn (Line) Total global adspend 2004-2016 Source: Warc Data & Forecasts Economic outlook, 2013–2016 0 1 1 2 2 3 3 4 4 5 5 2013 2014 2015 2016 Yr-on-yr%change Global Advanced Economies Emerging Market and Developing Economies Source: Warc Data & Forecasts
41 AD OUTLOOK AND DATA Newspapers Magazines Television Radio Cinema Outdoor Internet 2005 Media mix 2015 30% 12% 37% 9% 0% 6% 6% 13% 5% 40%6% 1% 6% 29% Source: Warc Data & Forecasts Global Americas Asia Paciﬁc Europe jan./12m rt./12m ei./12jul./12sep./12nov./12jan./13m rt./13m ei./13jul./13sep./13nov./13jan./14m rt./14m ei./14jul./14sep./14nov./14 * Headline GMI combines data for trading conditions, marketing budgets and staﬃng. 45,0 50,0 55,0 60,0 65,0 Global Marketing Index: Headline GMI* by region Source: World Economics in association with Warc (*Headline GMI combines data for trading conditions, marketing budgets and staffing. Above 50 = improving conditions; below 50 = declining conditions both newspapers (-3.7%) and magazines (-3%) will see net year-on-year declines. Internet has also overtaken TV to become the single biggest-spending ad channel in major markets including the UK, China and Canada: a list that is set to grow over the years to come. In short, advertisers are adapting to the shift of viewers’ attention towards digital platforms and away from the traditional media. Economicheadwinds Despite this broadly positive news for the industry, there remain significant headwinds to growth in the broader economy. Latest forecasts for global output from the IMF indicate an overall increase of +3.5% for this year and +3.7% for 2016. This is a downgrade from the previous 2015 forecast of +3.8%, and comes despite the significant recent declines in commodity prices, specifically oil – which traditionally stimulates broader GDP growth. Other obstacles to expansion include lower- than-predicted business investment and the impact of falling prices on consumer spending and debt repayments. The latest forecasts also highlight stark contrasts in performance between markets. Overall, emerging market and developing economies are predicted to increase output by +4.3% in 2015; on the other hand, mature markets, including Europe and North America, are set to grow by just +2.4%. Yet, there are also big contrasts in economic performances within both of these blocs. The emerging markets total includes still-strong 2015 growth of +6.8% for China, but a decline of -3% for crisis-hit Russia. Meanwhile, the advanced economies total also includes a +3.6% forecast expansion for the US, the world’s largest economy, which is partly cancelled out by growth of just +1.2% for the Eurozone. Marketers feeling the pressure These economic uncertainties are also getting through to marketers, according to latest results from our Global Market- ing Index, a forward-looking indicator based on data derived from a monthly worldwide poll of agency and client-side industry professionals. The index tracks responses on three separate issues affect- ing marketers: trading conditions, marketing budgets and staffing levels. Results across regions have fluctuated throughout 2014, signalling uncertainties in marketer sentiment. The Headline GMI metric, which synthesizes responses across all three of the issues tracked, dropped late in the year, reaching 55.1 in December, down from an annual high of 58.3 in April. Region by region, marketers in Asia-Pa- cific remain the most optimistic, regis- tering a Headline GMI reading of 57.0 in December. By contrast, sentiment in the Americas weakened significantly late in the year, with December’s reading reaching just 53.2. While these results still sig- nal a positive outlook – all scores above 50 signify generally improving conditions – they still imply that marketers will adopt a more defensive stance into 2015 than had appeared likely a few months ago.

WFA Annual Report 2014

WFA Annual Report 2014

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WFA Annual Report 2014