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© Copyright Warc 2014. All rights reserved.

In association with

WARC TRENDS

TOOLKIT 2014>> How to keep your brand ahead of the competition

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 2

BRANDS ARE RETHINKING ‘DIGITAL’

Big-name brands no longer see digital as a separate discipline, and are renew-ing their emphasis on core brand-building programmes. New strategic models are emerging that work across ‘digital’ and ‘non-digital’ channels.

‘SHOPPER’ MERGES WITH ‘MARKETING’

Fresh thinking on the path to purchase, including the role of emotion in the buying process, means that shopper marketing is becoming central to overall strategy. This has implications for the way marketing teams are structured.

SMARTER CONTENT STRATEGIES ARE NEEDED

As more brands invest in content marketing, competition for eyeballs is grow-ing. Content strategies are diversifying rapidly as brands look to stand out and the number of platforms grows. Sophisticated brands are reformatting content across platforms, and are developing strategies for content ‘discovery’.

THERE IS A BATTLE LOOMING OVER DATA

As investment in programmatic buying increases, sophisticated data strate-gies will be required. The importance of data management for programmatic is changing the relationship between brands, agencies and tech providers.

MULTICHANNEL IS A WORK IN PROGRESS

Research into the way channels work together has drawn only tentative con-clusions. Some studies underplay social media’s direct impact on sales, but emphasise its importance within a broad media framework. Studies of cross-screen viewing suggest reach is the main benefit, rather than sales synergies.

1

2

3

4

Five ideas to take from this report

5

Jump to Chapter 1

Jump to Chapter 2

Jump to Chapter 3

Jump to Chapter 4

Jump to Chapter 5

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 3

It is now essential that businesses navigate the operational challenges that digital story-telling poses

This report marks the second year of our collaboration with Warc, and we are once again excited to be working together on the key marketing trends of 2014. Each chapter of Toolkit 2014 will guide you through case stud-ies, thought-provoking insight and diverse client experience.

This report has naturally come to focus on the impact of digital across each of the themes covered. It is worth bearing in mind that digital in-novation is not necessarily at the to-tal expense of traditional media, and traditional media is by no means dead. However, digital disruption is driving a lot of the changes we are seeing in organisations today.

Multi-channel and multi-screen will undoubtedly continue to play a key role in 2014. Now that the idea of multi-screen has been realised, and as the market share of the tablet grows, it is time for marketers to look at the effectiveness of each chan-nel. They need to ensure there is a good balance between tailoring a channel-specific campaign and

A new operating model for marketingachieving a seamless ‘omni-channel’ experience.

As in last year’s report, content marketing is featured, but with a focus on sorting through overcrowd-ing of content and the importance of making an immediate and lasting impact on consumers.

We know social media is here to stay but it is now essential that businesses navigate the operational challenges that digital story-telling poses. The game has shifted for the operating models of market-ing departments. Activity is now not necessarily time-boxed to that of the lifetime of a marketing campaign, as digital becomes more widely an inextricable part of the business.

Marketers are facing another challenging, yet exciting year ahead, with change being the only con-stant. Building on Deloitte’s primary research and practical experience helping clients overcome these challenges, we are delighted to col-laborate with Warc to advance the practice of marketing.

Nick TurnerPartner, Deloitte Marketing & Insight Practice

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 4

Executive summary

The coming year looks promis-ing for the global marketing industry. After a 2013 marked

by economic volatility in many parts of the world, confidence is relatively high going into 2014. However, be-neath this macro-level picture, the industry is changing fast.

Warc’s Toolkit 2014 highlights five issues that marketers will be wres-tling with in the year ahead. It looks at the latest thinking, new research, plus real-life examples to suggest ways to respond.

Most information in the report is sourced from Warc’s global market-ing intelligence service, including case studies, articles from Admap magazine, research and stories from our daily news feed. For the second year, Warc has worked in association with Deloitte’s Marketing & Insight Practice to compile the Toolkit.

The report begins by looking at a change in emphasis on digital marketing (Chapter 1). So central is digital thinking now to all media and to all types of marketing, that the concept of digital as a separate discipline, requiring specialist knowl-edge, is increasingly redundant. The result is ‘post-digital marketing’, whereby campaigns run seamlessly

distinct discipline, but the distinction between it and general marketing is crumbling. Tech has reformed our understanding of the path to purchase. No longer does shopper marketing refer to people walking into stores; in an age of e-commerce, or even m-commerce, any consumer can also be a shopper. As in general marketing, marketers are focusing on emotion. Brands such as Mastercard and Frito-Lay are conducting in-depth research into emotional drivers within the shopping process, and there will plenty more studies such as these in 2014.

Content marketing, one of 2013’s buzz phrases, will see increased investment in 2014 (Chapter 3). But as more brands see themselves as publishers, the competition for eye-balls will increase. Simply produc-ing content is not enough; brands need smarter strategies to make it relevant, and to make it discover-able. Several trends in content are emerging. One is real-time: Coca-Cola, for example, is building an internal content team to ensure it can create relevant real-time content. In the fast-growing video space, there is a polarisation between big content ‘events’ and shorter formats such

between channels, both online and off. There are, for example, four different identifiable models for com-bining TV and digital channels.

As part of this trend, major organi-sations including Procter & Gamble, Unilever and Nestlé are placing renewed emphasis on insights and ideas, and fresh models of brand-building are emerging. Recent research from the IPA in the UK sug-gests they are right to do so: it high-lights the importance of long-term strategies over short-term, including digital-led, activity.

Another key trend among brands is the importance of shopper strat-egy (Chapter 2). In the past shop-per marketing has been seen as a

Mastercard has investigated the emotional drivers of shoppers

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 5

Executive summary (contd.)as Twitter’s Vine. This diversification of content strategies will be a feature of 2014.

In media, ‘programmatic’ is cur-rently making headlines, and with good reason (Chapter 4). Latest es-timates suggest the automated trad-ing of online ads will be a $17 billion industry in the US alone by 2017. The ecosystem behind it is complex, but the key lesson is the growing requirement for sophisticated data planning. Programmatic is driven by data, and the smartest brands are experimenting with different ways to mesh datasets. Australian brand Telstra demonstrates how data plan-ning can allow brands to align crea-tive messages to where an individual sits in the path to purchase.

Smartphones and tablets are transforming the media landscape, and some expect wearable tech to have a similar impact this year. There are more ways to reach an audience than ever before – but also more clutter, and more ways to annoy and alienate consumers. Several research projects are looking at how brands can work effectively in this multichannel landscape (Chapter 5). Initial findings are tentative. Re-search into social media has shown

consumers more likely to buy than exposure on a single platform.

Despite these challenges, confi-dence is returning. The final, data-focused, chapter underlines the pick-up in sentiment among marketers in the final months of 2013, and predicts broad-based ad growth across 12 major markets (Chapter 6).

Looking across the report, two themes recur. The first is the con-vergence of marketing disciplines. Digital is being integrated across the marketing department. Shopper marketing and general marketing are converging.

The second theme, which grows out of the first, is the profound change in the capabilities required of a marketing department. The demands of social and data plan-ning are forcing brands to rethink what stays in-house and what is outsourced to agencies. Coca-Cola is hiring coders and content experts to create real-time content; some brands have set up their own pro-grammatic trading desks.

This structural challenge is one many marketers across the world will grapple with in 2014. It is a chal-lenge Warc will return to as the year unfolds.

it can save brands money when used as a customer service tool. When the study looked at social in the commu-nications mix, the findings were less clear: in many cases social may work best as a link between other media, rather than a direct sales driver. Meanwhile, studies into ad cam-paigns run across screens empha-sise the potential of digital TV view-ing to deliver extra reach. However, they have not yet found evidence that multiscreen exposure to ads makes

Coca-Cola creates relevant real-time content with an internal content team

See Chapter 4

$7bnUS adspend via programmatic buying in 2013,

according to Magna Global

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 6

Brands discussed in this report

Nike (top-left); Bul-mers (middle-left); IBM (bottom-left); Oreo, (centre); Samsung (right)

FEATURED CASE STUDIES BY CHAPTER

Chapter 1: Strategy1600 Quitline, ‘The Smoking Kid’, ThailandSamsung Galaxy SII, ‘The Next Big Thing is Already Here’, US

Chapter 2: ShopperKellogg, ‘Walmart Back-to-School Program’, USVodafone, ‘Fakka’, Egypt

Chapter 3: ContentOreo, ‘Daily Twist’, US IBM, ‘A Boy and his Atom’, GlobalNike, ‘Greatness’, China

Chapter 4: MediaTelstra, ‘Telstra Turned On...’, AustraliaKellogg, ‘Special K Fall Challenge’, US

Chapter 5: MultichannelAT&T, ‘Marketing Mix Models’, USBulmers, ‘Valuing Bulmers’ cider fans’, UK

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 7

STRATEGY

POST-DIGITAL MARKETING>> Why marketers are rethinking their approach to digital

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

www.warc.com

Warc Trends >> Toolkit 2014

© Copyright Warc 2014. All rights reserved. 8

1 Organisations such as Unilever, Procter & Gamble and Nestlé are rethinking their approach to digital. There is a shift away from digital as a separate discipline, and a renewed emphasis on core brand-building programmes.

2 This shift is supported by a major piece of research on long-term versus short-term effectiveness.

3 However, this is more than a ‘back to basics’ approach. Digital has trans-formed the range of brand-building techniques now available. For exam-ple, there are at least four models for combining TV and social media.

4 Post-digital marketing is about more than communications. Some brands are taking a fresh look at product or service innovation. Others are look-ing to build better service offerings, or forge relationships with other, comple-mentary brands.

IN THIS CHAPTER...

At a glance A fresh approach to digital

The era of digital marketing is over. It’s almost dead. It’s now just brand-build-ing; it’s what we doMarc Pritchard, Global Brand-Building Officer, Procter & Gamble

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

www.warc.com

Warc Trends >> Toolkit 2014

© Copyright Warc 2014. All rights reserved. 9

McDonald’s created an app that allowed users to find out the provenance of their meal

Marc Pritchard, Global Brand Build-ing Officer at Procter & Gamble guaranteed himself headlines when he declared: “The era of digital mar-keting is over. It’s almost dead.”

His point was not that marketers should stop using digital channels. Far from it. He was arguing that digital should no longer be seen as something separate – a collection of technologies that require specialist knowledge to crack. It should instead be integral to all marketing.

Procter & Gamble’s emphasis, he said, is “now just brand building; it’s what we do.” The key to success is not the channel itself, but the ideas and the insights brands bring to it. The role of digital channels is to provide a fresh platform to reach and engage consumers, plus new ways to use ‘traditional’ media.

Pritchard is not alone. Pete Black-shaw, Global Head of Digital and Social Media at Nestlé, recently argued that too many brands “ignore the fundamentals” as they rush toward new digital platforms.

At Unilever, meanwhile, digital is becoming part of a framework which

A return to marketing fundamentals...results are less likely to achieve long-term success (in the form of profit-ability or pricing effects), unless they also pursue longer-term activity to strengthen the brand.

Social media, said the paper, could deliver long-term strategic opportunities (although it is often “misused as an activation channel”). More suitable as activation channels are search, online display, mobile and email marketing.

A good example is McDonald’s. The fast food giant has used tech such as gaming, mobile and social to share the brand’s story, generat-ing not only short-term buzz, but also to aid the brand’s image in the long term and shift negative consumer perceptions and associations.

Post-digital marketing, then, will involve a smart balance between long-term brand direction and use of short-term, or real-time, opportuni-ties. Kristen Cavallo, Chief Strategy Officer at Mullen, recently noted the rise of the mini-campaign, as brands look to win short-term battles around holidays or events such as ‘back-to-school’. Cavallo compared modern planning to “writing a book in chap-ters.” It can pose fresh challenges for both brands and agencies.

aims to ‘craft brands for life’. “A bad idea based on a bad insight on a great platform sucks. But a great idea rooted in a powerful insight will find every platform and exploit consumer engagement,” said Rob Master, Unilever’s VP Media for Americas and Europe.

This is the right approach, accord-ing to a major piece of research on long-term versus short-term effective-ness. It argued that marketers who focus their attention on the ability of digital channels to deliver instant

Digital should no longer be regard-ed as a separate discipline.

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

www.warc.com

Warc Trends >> Toolkit 2014

© Copyright Warc 2014. All rights reserved. 10

While there is a sense of ‘back to basics’ around some of these argu-ments, it is clear that ‘post-digital marketing’ is much more than a re-turn to pre-digital techniques. There are many brand-building strategies that have emerged that were either impossible or unfeasible before.

For example, digital platforms allow brands to do something small and focused, then push it to a mass, even a global level. An example from India is ‘Help a Child Reach 5’ from Unilever brand Lifebuoy. The brand ‘adopted’ the village of Thesgora, which had a high rate of diarrhoeal child deaths, and told the story of its children through online content that could be shared worldwide.

...but ‘back to basics’ is not ‘back in time’are enabling smaller campaigns to achieve greater scale.

It is also clear, however, that post-digital marketing is about more than communication and touchpoint strat-egy. Writing in Admap, Guy Murphy of JWT argued that brand-building is evolving in three ways. First, the quality or usefulness of a product is now more important than ever before to the health of the brand. That puts an emphasis on design, functional-ity or sensory experience. Second, more brands are adding value by developing service offerings. The third development is ‘brand bud-ding’, or forging relationships with other brands. The tie-up between Kit Kat and Google’s Android is an interesting example of this in action. Murphy argues that marketing needs to convince consumers choose to ‘opt in’ to a relationship with a brand.

Not everyone will agree. Murphy admits some of his arguments fly in the face of analysis by the likes of Andrew Ehrenberg and, more recent-ly, Professor Byron Sharp. They argue that brands grow bigger by increas-ing penetration, and attracting lots of light users, rather than loyal repeat purchasers. Expect this discussion to be a major theme of 2014.

This approach works well for focused CSR activity, but brands in other categories are taking similar steps. The Philippines Department of Tourism, for example, used social media to enlist the help of Filipinos in a tourism campaign that drove impressive results from a far lower budget than the nation’s competitors.

This theme was clear in this year’s Warc Prize for Asian Strategy. The 2013 competition saw a jump in the number of entries using social media and online video, and also a jump in the number of entries with a budget of under $500,000 making the shortlist. The implication is that digital channels, and the increased focus of brands on ‘earned media’,

Because brands were built using ‘as-sociation’ in mass media, brand-build-ing theory was forged around notions of intangible, emotional value. But as mass media fades, that theory fades with itGuy Murphy, Worldwide Plan-ning Director, JWT

A tourism campaign for the Philippines was co-created through social media

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

www.warc.com

Warc Trends >> Toolkit 2014

© Copyright Warc 2014. All rights reserved. 11

TWO APPROACHES TO BRAND-BUILDING

The perpetual experience engine

Source: ‘The Perpetual Experience Engine’, Omaid Hiwaizi (Geometry Global), Admap December 2013

Advertising-led approach Experience-led approach

A recent Admap paper looked at brand-building through three lenses: advertising and communications, product and service experience (the consumption and engagement mo-ment throughout the entire product ownership lifespan), and the cultural imprint of the brand in broader soci-ety, including its language and the values it holds.

Culture and connection

Advertising &

Comms

Product & Service

Experience

Culture and connection

Advertising &

Comms

Product & Service

Experience

It compared two approaches to brand-building. An advertising and communications-led approach is tried and tested. It is a powerful way to reach a mass audience, inviting consumers to take part and engage and/or to drive product purchase and trial with direct calls to action.

An alternative approach focuses on the product or service experi-

ence and the social culture created around the brand. The result is an ‘experience engine’ that can drive growth. This growth can be acceler-ated using advertising or communi-cations, but it does not rely on it.

Experience-led brands tend to be built around a specific purpose, have a differentiated product and engage consumers in a direct way.

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

www.warc.com

Warc Trends >> Toolkit 2014

© Copyright Warc 2014. All rights reserved. 12

Four ways to combine TV and digital‘TOP-DOWN’ MODEL

In this model, television is used as the primary launch platform for a campaign message. Digital media provides a ‘social extension’ of the campaign theme.

‘BOTTOM-UP’ MODEL

This is the opposite to the top-down model: a ‘bottom-up’ approach where significant levels of social/online activity are generated (usually with direct consumer participation/ co-creation). This activity is then selectively ‘re-broadcast’ via TV to a wider audience.

‘PREQUEL/TEASER’ MODEL

The third model uses digital channels as a ‘prequel’ to TV launches, seed-ing often longer-form video to establish some buzz around campaigns before they launch more ‘traditionally’. This is a new spin on the very well established ‘teaser’ model, but differs to ‘bottom-up’ as it doesn’t involve online consumers directly in content development.

‘RECRUITMENT’ MODEL

The fourth model sees TV take on a very specific role in relation to digi-tal, which is to recruit viewers to online/social programmes and activities, thereby maximizing the levels of participation.

1

2

3

4

Adapted from ‘TV and digital - Are we there yet? Or do we event have a map?’, Phil Danter, Advertising Works 21 (IPA), via Warc

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

www.warc.com

Warc Trends >> Toolkit 2014

© Copyright Warc 2014. All rights reserved. 13

CHALLENGE

Smoking has been a public menace for years in Thailand and for the past 20 years, the Thai Health Promotion Foundation (THPF) aggressively pro-moted a free hotline, 1600 Quitline, to help smokers kick the habit. Despite large investment, the number of calls to the line has been relatively low; smokers either ignored the campaigns or didn’t give the key message much thought.

SOLUTION

Rather than use scare tactics or an emotion-led approach, the ‘Smok-ing Kid’ campaign utilised a new tactic called ‘inside-out reflection’. The smokers were put in a situation where they heard their own voices, creating a ‘self-awakening’ moment.

Combining smokers’ and cultural insight led to the creative idea. Thai-land is a hierarchical society where the older generation is expected to set a positive example for the young.

Child actors, with cigarettes in hand, approached public smok-ing areas and asked smokers if

Case study 1600 QuitlineA small-budget campaign built on consumer insight used digital plat-forms to gain international reach.

Campaign The Smoking Kid

Advertiser Thai Health Promotion Foundation

Agency Ogilvy & Mather Thailand

Market Thailand

Source Warc Prize for Asian Strategy, 2013

they could use their lighter. All the adults refused and often criticised the children for smoking. The actors responded by asking why the adults still smoked, before handing them a brochure for the quitline.

Online media was used as a direct channel to communicate with smokers on a personal level and the video was seeded on many websites including YouTube. By

actively watching the entire scene caught on hidden cameras,

smokers experienced the same feeling, causing them to also reflect on their behaviour.

RESULTS

The campaign led to a meas-urable behaviour change. The

number of completed calls increased by 62%, in June compared to the average in the five months prior.

For the following four months, the average number of monthly calls was up 32% from pre-launch levels. This sustained higher number meant that other media advertising the quit-line became more visible to smokers.

This was the best performing THPF campaign for 20 years and was de-veloped on a budget of just $5,000. Read the full case study

Child actors with cigarettes made adult smokers consider their habit

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

www.warc.com

Warc Trends >> Toolkit 2014

© Copyright Warc 2014. All rights reserved. 14

CHALLENGE

Samsung knew it had a great, category-changing product in its Gal-axy SII mobile phone, but also knew it had no recognition as an innova-tor. It was seen as one of a cluster of Android smartphones trailing Apple’s iPhone. Samsung faced the dual challenge of positioning the com-pany as likeable, fun, and a worthy innovator, and competing with one of the world’s most loved brands.

SOLUTION

Apple inadvertently provided Sam-sung with the insight and inspiration for its campaign. The iPhone 4S had been a disappointment for Apple aficionados expecting an entirely new product. Samsung realised it could deliver a compelling narrative around the futility of queuing for a disappointing product.

Samsung started with a humorous film to inform the audience about the smartphone. Each film features queuing Apple fans, who are discon-certed when they see the Galaxy SII being used by people not in the line.

Case study Samsung Galaxy SIISamsung showed how digital plat-forms allow brands to respond to events with ‘mini campaigns’.

Campaign The Next Big Thing is Already Here

Advertiser Samsung Mobile

Agency 72andSunny

Market US

Source North America Effies 2013

real world activation, added dimen-sion to the Galaxy SII and it started to become a more lovable brand.

RESULTS

The campaign was key to establish-ing Samsung as the leading handset manufacturer of Android-based phones. Key brand scores for in-novation and purchase intent grew. On social, it cultivated an engaged Facebook community. Acquisition increased 433% in the first month after launch, reaching 1,000,000 fans before the end of the year.Read the full case study

Digital was the starting point with the film ‘leaked’ on Mashable before appearing on Samsung’s Facebook page later that day. That was fol-lowed up with high profile TV place-ment and cinema advertising.

The story was amplified through Samsung’s social channels and owned media, with the campaign’s characters and storylines providing key content throughout social media. In the past, Samsung was more focused on using product as the dominant narrative, so this was an arresting change of direction. This ‘life in social channels’, as well as

Samsung used humour to challenge Apple’s position as the leading innovator

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

www.warc.com

Warc Trends >> Toolkit 2014

© Copyright Warc 2014. All rights reserved. 15

Viewpoint Post-digital brand-building

So effectively has it been embraced by all other channels that digital is effectively dead as a standalone concept

Digital is not a distinct channel, but an enabler to building consistent, relevant and desirable brands with which people can have a personal relationship. It supports and con-nects all other channels and is increasingly part of each. Its maturity has effectively killed it. So embraced has it been by all other channels that digital is effectively dead as a stand-alone concept.

2014 will see an even greater integration of digital and technology within marketing channels, building on some great examples from 2013.

BA’s outdoor execution of its ‘Magic of Flying’ campaign is a great example of one of the world’s oldest advertising channels, outdoor, integrating with one of the newest, digital. When a BA plane flies above the digital billboard at Piccadilly Circus in London, the screen reacts. It shows a boy pointing to the plane as it flies overhead, with the flight’s actual number and destination or origin featured, for example: ‘Look, it’s the BA475 from Barcelona’.

Burberry is a much-quoted exam-ple of a brand whose storytelling and brand building is digitally-led, from live streams of catwalk shows on social media to its in-store retail experience with synchronised digital screens, ‘disruptive digital takeovers’ and RFID tags on clothing prompting relevant films to play when taken into changing rooms.

There are many other examples. Mobile network EE and outdoor specialist Posterscope joined forces to provide advertisers with consumer mobile usage habits in proximity to media space. Giffgaff, the mobile network, rewards its members for answering customer service ques-tions, recruiting members or helping promote the brand. Giffgaff, inciden-tally, has a Net Promoter Score of 74, on a par with Amazon and Apple.

Mobile technology will continue to drive this change. Consumers in developed markets and urban pro-fessionals in developing markets on average own or have access to be-tween four and eight mobile devices.

By the end of 2013, more the 2 billion smartphones, 300 million tablets and 1 billion laptops are expected to be in use globally.

Digital – comprising technology, mobile, social, online and data – is the enabler for channel convergence. It amplifies messages and enables brand owners to act as curators of content created by its audiences. This always-on approach forces marketers to lose the short-term campaign in favour of a long-term brand-building platform. It runs through every communication chan-nel and all business functions, and this is how it should be treated in the post-digital world.

Marketing’s challenge is to ensure the right structure is in place to facilitate the integration of digital into all brand-building activity – both internally and within a brand’s agency partners.

William GrobelManager, Deloitte’s Marketing & Insight Practice

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

www.warc.com

Warc Trends >> Toolkit 2014

© Copyright Warc 2014. All rights reserved. 16

RETHINK DIGITAL STRUCTURES

Major organisations are moving away from treating digital marketing as a separate discipline. That means ditching silos and ensuring digital expertise exists across an organisation. It also means aligning brand performance objectives between ‘digital’ and ‘non-digital’ activities.

RETAIN LONG-TERM METRICS

A key challenge is balancing the long-term needs of the brand with the growing range of short-term, even real-time, opportunities. There is now a strong argument that a focus on short-term measures will not deliver true long-term success. As the Samsung example shows, it is worth consider-ing how these two demands can be aligned.

LOOK FOR NEW MODELS

There is a growing range of models for combining digital and non-digital activity. It is important to identify the most appropriate model, particularly with regard to the different roles social media can play within a brand strategy. Marketers should also consider the growing importance of non-communications activity, such as a service offering around the product.

THE ‘OPT-IN’ BRAND?

There is an argument that digital technology places fresh emphasis on consumers’ relationships with the brand. This would mean a shift in mar-keting theory away from penetration as the key to success. This discus-sion may become a major theme of 2014.

Implications Post-digital marketing

1

2

3

4

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 17

SHOPPER

POINTS OF INFLUENCE>> How marketers are rethinking their shopper strategies

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 18

1 Shopper marketing is high on the agenda for 2014, for two reasons. First is the ongoing transformation of retail by tech; second is the growing under-standing of the role emotion plays in the shopping process.

2 The result is a smarter understanding of consumers’ purchase journeys, and the points along them at which brands can exert influence. Brands such as Frito-Lay and Mastercard are investing in research to build this knowledge.

3 Data from Nielsen shows how complex influence-mapping can be: two prod-ucts in the same category can have very different purchase paths.

4 The trend toward more nuanced shop-per insight is likely to accelerate as the impact of traditional in-store promo-tions declines. A study by IRI found that trade promotion investment has grown without driving sales volumes.

IN THIS CHAPTER...

At a glance Shopper strategies evolve

You have to decide – and understand – if you are delivering a positive emotional experience to the con-sumer or a negative oneMike Quintana, Director, Strategic Insights, Global Brands, Frito-Lay

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 19

Interact with

product website

View ads

Read reviews

Research product

View video

Download coupon

Compare prices

Visit deal site

Consult friends

Visit commerce

website

Visit store

Purchase product

Unbox

Use product

Take video / photos

Share opinion

Upload media about

products

Join product /

retailer dis-cussion

Shopper insight has become one of the hottest topics in marketing. It will loom large in 2014 for two reasons: first, the ongoing impact of technol-ogy on the path to purchase; second, a more sophisticated understanding of the ways brands can influence and motivate consumers at different points on the path to purchase.

What does the path to purchase look like in a world of e-commerce, smartphones and social media? Resource Interactive and the Futures Company developed the ‘Purchase Fish’ to reflect today’s on and offline shoppers. The ‘fish’ reflects how shoppers meander as they progress.

The Infinity Loop, from Geometry Global, is another contemporary version. It places the purchase at its heart and emphasises the processes of discovery, usage and advocacy, all acting in a constant ‘loop’ activity.

What these examples show is that a brand’s opportunity to interact with, and influence, shoppers has expand-ed far beyond the store. And the lines are blurring between ‘shopper’ mar-keting and broader brand activity.

Tech expands the purchase path...

parents did at the same age and will outspend Baby Boomers within five years. “They have plenty of options and expect brands and retailers to cater to their needs, customising products, messages and experiences to win them over,” said Christopher Gray at Saatchi & Saatchi X.

Realising their influence and spending potential, Coca-Cola runs an ongoing web-based study on Millennials called iSHOP. It found they combine convenience retail, mass merchants, and speciality retail and spend more time buying online than other age groups. The research showed that some retailers are

For mass-market brands, under-standing shopper expectations of technology within their category is crucial. It’s an area Kimberly Clark has focused on. “The consumer expects technology to be highly integrated with the shopping experi-ence. However, when they go to the store today, there’s a barrier. The digital experience is separate from the in-store experience,” said Kelly Stephenson, Senior Brand Manager for Huggies.

Other companies have concen-trated their research on Millennials. Digitally savvy and ubiquitously con-nected, they spend more than their

Technology and a smarter under-standing of consumer behaviour are reshaping shopper strategies. Grounding

retail com-munications, experiences and tools in deep shop-per insights... improves their abil-ity to mo-tivate and influence purchase behaviourChristopher Gray, VP Shopper Psy-chology, Saatchi & Saatchi X

The ‘Purchase fish’ demonstrates how there is no single route for shoppers

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 20

adapting to Millennial ways of shop-ping, including Target, Trader Joe’s, and restaurant chain Chipotle.

Walmart is aligning its in-store and out-of-store activity. It has created an app that enables customers to record a list and then to see prices at their local stores, the quantity in stock, and even the exact in-store loca-tion. If the app is enabled in-store, it acts as a shopping companion, highlighting special offers, with a bar code scanner for price and product information. In France, Casino offers consumers a similar app, providing an in and out of store experience to engage contemporary shoppers.

With new opportunities to influ-ence shoppers along the path to purchase, there is a growing interest in understanding the emotional, as well as rational, drivers of behaviour. Mastercard, for example, has worked with Brainjuicer to identify the emo-tional drivers of online purchasing, focusing on the decisions people made within an online environment. One of the conclusions was that “[shopper] decisions should be fun, fast and easy to take – they need to feel good, be quickly available, and not demand too much cognitive effort from the decider.”

...as brands look for points of influenceStrategic Insights, Global Brands.

In the UK, meanwhile, Tesco has identified a number of distinct shop-per ‘missions’. By reconfiguring its in-store layout around these missions, it has increased purchase frequency and sales value.

A more nuanced understanding of consumers requires investment. An extreme example is Glaxo-Smith-Kline, which has built a huge Shop-per Science Lab in London’s out-skirts. It provides qualitative insights around key business questions, cov-ering everything from packaging to in-store media and brand websites.

This shift towards more nuanced shopper activity will be driven by another key trend: the declining performance of traditional in-store promotions. Research by IRI sug-gests that brands in Europe have increased investment in trade promo-tions, but these have failed to drive volume sales. Better understanding of consumer needs is required to deliver smarter in-store work.

“To make the right decisions, marketers need to get a clear view of what’s influencing each shopper’s trip – not only to gain market share, but also to gain loyalty,” said Tim Eales, Strategic Insight Director, IRI.

Frito-Lay is another organisation focusing on emotional drivers. Its focus is on replicating the brand ‘experience’ whenever a consumer interacts with it – whether that’s in-store, on a TV ad, or when they’re actually eating the potato chips. “We start to think about [insights] not only in terms of the experience that the product is delivering, the [problem] that the product is solving, but how that experience is delivered across all our touch points,” said Mike Quintana, the company’s Director,

Walmart’s app has contributed to aligning in-store and out-of-store activity

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 21

Diapers l Baby food u

A study by Nielsen underlines how purchase influences can vary considerably between categories, even when those categories appear related.

A good example is a compari-son of diapers and baby food. In both categories, a similar proportion of shoppers use digi-tal on the path to purchase.

However, further analysis shows that shoppers use differ-ent digital touchpoints in the two categories. Mobile apps are far more influential in baby food purchases than the CPG average. Email and social media are more influential in diaper purchases. Blogs over-index in both categories.

The research points to oppor-tunities not only to optimise touchpoints, but also to see where in the path to purchase brands are failing to be heard.

FINDINGS COMPARISON OF INFLUENCE POINTS

Mapping decision points

Source: Nielsen, ‘Unlocking Success with Digital Shoppers’, via Warc

38% 36%

Percentage of category shoppers that use digital during the shopping process

Path-to-purchase decision points

email websites Social Blogs Mobile

network apps

Discover new brand/product l l l u

Plan a trip/decide where to shop l lu u

Decide what products to buy l l lu u

Access info about a discount, l l lu udeal or coupon

Diapers Baby food

(The points on the decision path where consumers acknowledge the role of a specific channel, over-indexing at 150+ versus other CPG categories)

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 22

CHALLENGE

Kellogg’s started a back-to-school (BTS) initiative in 2011 but it only produced minor gains. So the brand wanted to give its marketing a boost during the fiercely competitive US BTS season, where it trailed its rivals at both engaging mothers and driv-ing sales among them. These rivals, particularly General Mills and Post, boasted longstanding education-based programs that tapped into the desire to further children’s education.

SOLUTION

Walmart is a competitive BTS retail space and it was here that the brand decided to reinvent its BTS pres-ence. Research showed that Walmart shoppers were concerned about the amount of money they had to spend on BTS necessities. The brand part-nered with Scholastic, the children’s book publisher, and launched the ‘Feed their imagination’ promotion. At the heart of the campaign was an offer – buy two Kellogg’s products and get a free book – and to boost

Case study Kellogg’sThe cereal brand teamed up with Walmart to engage with mothers at various points on the path to purchase.

Campaign Walmart Back-to-School Program

Advertiser Kellogg’s

Agency The Integer Group

Market US

Source North America Effies 2013

shopper buzz and retailer excitement the agency developed tactics along the path to purchase.

Initial engagement was estab-lished through targeted online ads and sponsored blogger posts, while credibility in the learning space was created through ads featuring quotes from real mothers and informing teachers about the initiative with ads in the teaching press.

In store and at shelf, compelling photography on product and PoS material captured the imagination of mothers. Beyond the store, Kellogg’s worked with Walmart to develop a process that rewarded likes on their Facebook page. Integrating a QR code into the redemption process on-

pack supported Walmart’s emphasis on mobile.

RESULTS

The products became so sought after that Walmart awarded Kellogg’s greater in-store placement. The programme attracted more participa-tion than any other Kellogg’s offer, and product sales soared. In total, 28,955 consumers joined Kellogg’s Family Rewards and participated in the Scholastic program. Participants were twice as likely (57% vs. 28%) to be ‘new to Kellogg’s’, highlighting that the initiative attracted consum-ers who had not previously engaged with Kellogg’s Family Rewards. Read the full case study

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 23

Vodafone credit was substituted for small change in neighbourhood stores

CHALLENGEIn Egypt the telecom category is highly competitive. Given low con-sumer incomes in the country, it is driven by price. Promotions target prepaid users, who represent 90% of the population. Vodafone faced two challenges. Firstly, a category issue; how to compete on value, not just price. Secondly, a brand issue as it is recognized as an aspirational inter-national brand, but is still perceived as expensive for many low-income consumer groups in Egypt.

SOLUTION

To counter these issues, it decided to introduce Micro Credit Recharge Cards. They were similar to existing prepaid cards in that they served the same functions, but were intended to hold much smaller call values. However to avoid the cards being seen as a cheaper relative of existing cards, and to prevent being drawn into price-led marketing, Vodafone sought a different frame of refer-ence against which to position them. By understanding the shopping

Case study VodafoneThe telco demonstrated a sharp understanding of in-store behaviour and the role the brand could play.

Campaign Fakka

Advertiser Vodafone Egypt

Agency JWT Cairo

Market Egypt

Source Jay Chiat Strategic Excellence Awards 2013

habits of low-income Egyptians, it discovered a common retail prac-tice: instead of giving small change to consumers, shopkeepers give low-value items such as sweets or plasters. Vodafone decided to offer its Micro Recharge cards as a higher-value alternative: to be kept in tills and handed over in place of change.

The cards became a new currency for the country. They were called ‘Fakka’, which is Egyptian slang for ‘small change’ (and a natural language for potential consumers). Distribution focused on small, local neighbourhood stores and markets throughout the country. As such, Vodafone gained 46,000 new outlets and was able to offer Fakka to

thousands of Egyptians during their routine shopping activities, meaning consumers did not need to make a dedicated trip to a Vodafone store or a supermarket for mobile credit. Ad-ditionally, TV advertising was used to drive awareness of Fakka.

RESULTS

Creating new distribution channels delivered huge benefits to Vodafone. Sales and usage of Fakka have so far been impressive. Average reve-nue per Vodafone user has increased by 7%, and there has been a steady 10% increase in distribution of Fakka across the country, and the number is still rising. Read the full case study

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 24

Viewpoint Feeling leads, function follows

Marketers have an opportunity to change the measure-ment para-digm; to incorporate the impact emotions have on consumption

Emotions have long been known as an important consideration in marketing and advertising, but the formal understanding of how an emotional response can trigger an action to buy has become clearer in recent years. Technological develop-ments, such as facial recognition analysis, have sparked marketers’ maturing interest in how we feel.

But when it comes to understand-ing the likely success of a campaign, the emotive element is often over-looked. Traditionally, brands meas-ure explicit behaviours and attention-based metrics to reflect performance. These metrics have a legacy in traditional media and are biased towards recall and high-attention ads, ignoring advances in our ability to understand the implicit emotive factors that drive behaviour. They are focused on the ‘what’, not the ‘why’. It is this ‘why’ insight that can bolster marketers’ ability to engage consumers. Marketers have an op-portunity to change the measurement paradigm; to incorporate the impact

that emotions and feelings provoked by a communication have on brand engagement and consumption.

Campaigns with a single emo-tive touchpoint are less powerful than ones which consider the entire path to purchase. There is a need to connect through emotion but to follow through with a rational ‘reason to buy’. Marketers can take many opportunities along the customer journey to emphasise both, ensuring consistency within a strategy that in-cludes multiple marketing assets and media. A Swedish mattress manufac-turer, Duxiana, successfully pushed sales through an emotional message in print, digital and radio ads. The brand cleverly used six different digital banners that incorporated the time of the consumer’s location and copy explaining why they might be tired at that moment, with a sugges-tion that they change their mattress.

With great power comes great re-sponsibility. It is worth emphasising that marketers should be mindful of the ethical responsibility of market-

ing to the ‘emotional shopper’ and appreciate that being emotionally short-sighted can be damaging.

For some time, government and regulatory bodies have been there to protect consumers who are not always able to make decisions which are in their own best interest. It’s one thing for a retailer to tug at our heart strings at Christmas, but it’s quite another when advertisers are using emotion to exploit shoppers; take recent press stories on payday loans providers who chose to advertise alongside children’s programming to stimulate ‘pester-power’.

As marketers become more emotionally sophisticated in their engagement with consumers, they will need to be ever more responsible with this insight. Campaigns that balance the marketing opportunity with consumer wellbeing are best for a long-term brand strategy.

Elisa Chami-CastaldiConsultant, Deloitte’s Marketing & Insight Practice

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 25

INTEGRATE ‘SHOPPER’ WITH ‘MARKETING’

As purchase paths become more complicated, the distinction between ‘shoppers’ and ‘consumers’ is crumbling. As a result, many marketers are integrating shopper strategies much more closely with the core mar-keting activity. That means ensuring a close fit between in-store activity and other marketing. More broadly, when mapping potential points of influence on the path to purchase, brands should ensure the messages consumers will see at each point are aligned. This may require closer collaboration between internal marketing teams, or closer collaboration between a brand’s agencies.

ASSESS BEHAVIOURAL DRIVERS

As in general marketing, there is a growing understanding of the role of emotion within shopper marketing. At a time when traditional promotions are failing to connect, brands are looking closely at triggers within the path to purchase, and untapped points of influence. Brands should con-sider taking a fresh look at consumer purchase journeys, and what really drives consumers within them.

ALIGN EXPERIENCES

Brands such as Frito-Lay are taking steps to align the experience a cus-tomer has of a brand across the path to purchase, including communica-tions, in-store experience, packaging and the actual consumption of a product. That may involve far greater internal co-ordination between the marketing function and other parts of a client’s business.

Implications Influencing shoppers

1

2

3

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 26

CONTENT

CUTTING THROUGHTHE CLUTTER>> How brands can stand out in the crowded content space

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 27

1 As brand investment in content grows, there is increasing competition for eyeballs. Brands are looking at various strategies to cut through, and publish-ers are developing a range of paid-for opportunities to help them. The current interest in ‘native’ advertising is part of this trend.

2 Greater relevancy through ‘real-time’ content is a second strategy, though this is a resource-intensive option.

3 The need to cut through is driving a polarisation in video strategies. At one end are high-impact, often big-budget, ‘event’ pieces of content. At the other, led by platforms such as Vine, are a range of short-form video formats.

4 Some brands are taking a sophisti-cated approach, allowing consumers to experience a piece of content in dif-ferent formats as they journey across different platforms.

IN THIS CHAPTER...

At a glance The rise of content clutter

People are connecting and sharing more than ever... When someone visits [Face-book] News Feed, there is an average of 1,500 pos-sible stories we can showFacebook blog post, December 5 2013

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 28

In December, Facebook issued a warning to marketers. The content brands are posting on the site, it said, may be reaching fewer peo-ple than before due to the growing amount of content being shared by users. Simply put, there is more com-petition for eyeballs on the platform. “We expect this trend to continue as the competition for each story re-mains strong,” said the organisation.

The statement was an appeal for brands to spend more on Facebook. But it is indicative of a broader trend. Content marketing, a catch-all term that covers a variety of techniques, has been one of 2013’s buzz phrases. It is clear that brand investment in this area is increasing. But as more brands become content produc-ers, competition for the attention of consumers will increase. Will brands start to see diminishing returns from content investment?

Warc’s recent in-depth report into content marketing suggests that strategies are diversifying quickly, in part because of the pressure to stand out. There are several key themes

Brands try new content formats...including their location, what they were talking about, and who they were connected with. The content could even be updated based on the conversations users were having. “For every dollar we spent on media on Facebook, we realized a six-dollar return, through beer sales,” said Lucas Herscovici, the company’s VP Digital Marketing, North America.

A second trend is the shift toward real-time content delivery. Real-time content is, arguably, more likely to be relevant to consumers than ‘regular’ content, and therefore more likely to cut through a cluttered content envi-ronment. Acting in real-time, howev-er, requires considerable resources. According to Jonathan Mildenhall, SVP Integrated Marketing Content and Design Excellence, Coca-Cola, the company is recruiting conversa-tion managers, coders, creators, photographers and film makers, and incorporating them into marketing teams “so that we can develop con-tent that is both agile and excellent”. A more common set-up is for brands to set up dedicated ‘newsrooms’ for short windows of time, such as around big sporting events.

Third is a polarisation in content strategies, particularly video. At

emerging within content marketing as brands seek to stay ahead of the competition.

First is the rise of new paid media formats that help brands promote their content, specifically native advertising. ‘Native’ ad placements allow brands to present their content embedded within the editorial feed of a media owner – both ‘traditional’ websites and social networks.

One brand that has used Face-book’s paid placements is AB InBev. It has targeted content at beer drink-ers on social media based on factors

Growing investment in content mar-keting means brands need to be smart if they are to cut through.

General Electric staged a week-long ‘6 Second Science Fair’ on Vine and received more than 600 entries

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 29

one end of the scale is long-form con-tent, or other big-budget video. This is a content ‘event’, and is in some ways a replacement for a traditional ad campaign. At the other end of the scale there is a growing range of short-form, cheap-to-produce formats, which have a short lifecycle and focused short-term objectives.

One example is a campaign by General Electric called the ‘6 Second Science Fair’, a week-long initia-tive asking users of Twitter’s Vine, to upload short clips detailing their interesting and unusual experiments. More than 600 entries were received. GE believes content of this sort can

...as competition for eyeballs growsas Urban Outfitters and Converse were early movers in using Vine.

Finally, brands are recognising that, to give their content the best chance of standing out, they need to think across platforms. The range of sites on which content can be posted keeps growing. And one of the limita-tions of ‘native’ advertising is that it can be difficult to scale; different publishers have different require-ments. That means brands planning content must consider the many ways it might be used, and the formats that might appeal to consumers in different contexts.

The growing sophistication in video strategies is evident in a L’Oréal campaign. ‘The Girl with The Big Eyes’, for the Maybelline brand, took inspiration from the publish-ing concept of ‘bite/snack/meal’ – or producing different types of content depending on how deeply a user wants to engage.

What started as a 90-second video was broken down into different parts, then reassembled to create different packages: photos and quotes that could be spread as ‘bites’ on social media; more substantial ‘snacks’ of animated gifs and teasers; then the full ‘meal’ experience.

deliver “micro-relevance”. As Beth Comstock, SVP/CMO at GE, put it: “Sometimes you want 40 million peo-ple to connect with you, and some-times maybe you only need 4,000.”

The need for short content for-mats, particularly short-form video, partly reflects the rise of mobile as a content consumption platform, and the importance of social media as a distribution tool on mobile. Twitter’s public launch of Vine, a six-second video format, in January 2013, and then Facebook’s roll-out of Instagram on Video a few months later, offered opportunities for video that can be shared and promoted. Brands such

We have the technologi-cal ability to respond to the cultural context as and when it is happen-ing. We will see much more topical content that engages with con-sumers dailyJonathan Milden-hall, SVP Inte-grated Marketing Content and De-sign Excellence, Coca-Cola

Maybelline took a ‘bite/snack/meal’ approach to producing content

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 30

Four reasons native is making the news

1

2

3

4

PUBLISHERS NEED AN ALTERNATIVE TO DISPLAY

The price of traditional banners has been steadily eroded. Publishers see ‘native’ placements, where sponsored content is integrated into editorial, as premium inventory. They are also keen to sell their services as content producers as well as advertising platforms.

BRANDS NEED HIGH-IMPACT SOLUTIONS

As banners become less effective, brands need higher-impact digital solutions. Native placements offer new opportunities to earn attention and engagement via contextually relevant content. The ‘sharing’ functionality built into native formats offers the chance for messages to be passed on.

SOCIAL PLATFORMS SEE A CHANCE TO MONETISE

Native placements within social media sites, such as ads appearing in a Facebook user’s timeline, are a key revenue-generating tool. They are interesting for advertisers because they have social functionality (liking, commenting, sharing) embedded into them.

NATIVE WILL BE CRUCIAL IN MOBILE

There are fewer display advertising options on stripped-down mobile sites. Native placements, where a brand’s content is embedded into the editorial feed, are an important way in to mobile for brands.

Adapted from ‘The Content Revolution’ (Warc Trends report)

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 31

Growing spend, but questions remain

The Content Marketing Insti-tute, a US-based organisa-tion, runs surveys of marketers in three markets around the world, in association with local trade body partners.

Results from these surveys in the US, Australia and UK show a consistent picture of growing investment in content marketing. In all three mar-kets, around 60% of marketers are planning to increase their budgets over the next year.

However, the same studies sug-gest that questions remainover the effectiveness of content marketing as a strategy.

In all three markets, the major-ity of marketers score the ef-fectiveness of their own content efforts at 3/5 or lower.

KEY FACTS

Source: Content Marketing Institute, 2013. *North America data is for B2C marketers only.

9%28%49%12%

10%28%45%15%North

America*

9%24%49%15% UK

Australia

Significantly increase Increase Decrease UnsureRemain the same

2%

3%

2%

CONTENT INVESTMENT PLANS (OVER NEXT 12 MONTHS)

5 - mosteffective4

3

2

1 - least effective

North America*

7% 1%

27%

20%

44%

UK

7% 3%

32%

11%

45%

Australia

4% 4%

25%

16%

49%

RATINGS OF CONTENT EFFECTIVENESS

Source: Content Marketing Institute, 2013. *North America data is for B2C marketers only.

How marketers rate the effectiveness of their organisation’s use of their content marketing

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 32

Case study OreoCampaignDaily Twist

AdvertiserOreo

AgencyDraftfcb New York

MarketUS

SourceWarc Prize for Innovation, 2013

Oreo’s ‘Daily Twist’ celebrated current events including Gay Pride Day and the Tour de France

The cookie brand used a 100-day content strategy to maintain momentum around its centenary celebrations cost-effectively.

CHALLENGE

To celebrate its centenary in 2012, Oreo planned a marketing campaign lasting nine months. It started with six months of TV, print, point-of-sale and radio activities, as well as par-ties and events. Consumption levels rose by 45% year on year during its birthday week, and its market share in March leapt by 3.2 points.

However, 52% of Oreo’s media budget had been spent in three months. It needed to keep people engaged and meet full-year sales targets as expenditure dwindled.

SOLUTION

As part of a wider effort to shed Oreo’s traditional image, it was de-cided to make the much-loved cookie more ‘newsworthy’.

fans on the social network. It also recorded a 515% increase in retweets on Twitter compared with the three months before the campaign, and 231 million media impressions were generated.

Perhaps most importantly, annual sales jumped by 4% in the third quarter following ‘Daily Twist’. This was in spite of a media budget that was 28% lower than in the first three months of the year.

Read the full case study

Qualitative research revealed that Oreo helped people of all ages enjoy the carefree spirit of childhood, something which was all too rare in the modern world.

But rather than emphasising nostalgia, the brand decided to look forward. This idea was embodied by the uploading of a new ad to Facebook, Twitter, Pinterest and the brand’s own website every 24 hours for 100 days in a row.

Each morning, an editorial team of client-side and agency executives analysed current news stories to identify an appropriate subject, and the creative team gave it an Oreo ‘twist’.

These images covered everything from Gay Pride Day to the Mars Rover Landing, the Olympics to the Tour de France.

RESULTS

Overall, the ‘Daily Twist’ posts were seen 433 million times worldwide on Facebook, gaining 1.3 million shares, ‘Likes’ and com-ments, as Oreo added over a million

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 33

Case study IBMCampaignA Boy and his Atom

AdvertiserIBM

AgencyOgilvy & Mather New York

MarketGlobal

SourceJay Chiat Strategic Excellence Awards, 2013

The world’s smallest movie was created by manipulating single atoms

CHALLENGE

Despite winning countless awards and receiving the most US patents in 2012, IBM was not acclaimed as one of the world’s truly innovative companies. Having left the consumer marketplace 10 years ago, the company never appeared on lists of innovative companies. As such, it struggled to attract talent and had to battle with younger (and seemingly sexier) start-ups for leading coders and engineers.

Thus IBM needed to make the world sit up and agree that “IBM is building a Smarter Planet by advancing the frontiers of what is scientifically possible.” But budgets were limited and owned and earned media had to take centre stage.

SOLUTION

IBM and its agency realised that science was starting to be seen as ‘cool’. Assisted by social media, science was becoming prominent in popular culture with the Higgs Boson

The technology giant produced a stunning one-off piece of content to capitalise on the current interest in science and reinstate itself as an innovative brand.

and NASA’s ‘Seven Minutes of Terror’ capturing public imagination.

So a research story that could be easily explained, yet dramatised without compromising IBM’s brand tone of ‘smart and charming’ was needed to align IBM with this flour-ishing science interest. Among the essentials for the story was that it should be educational branded con-tent that was designed to be shared.

IBM created the world’s smallest movie by manipulating single atoms on a copper surface to produce the 90 second film ‘A Boy and his Atom’.

To generate buzz and integrity IBM contacted The Guinness Book

of Records, which validated the company’s claim that this was the ‘world’s smallest movie’.

RESULTS

The goal was to hit 1 million views – a target exceeded in 24 hours. To date the film has been viewed 4.8 million times on YouTube.

The ‘making of’ feature gained over 700,000 views and the film was covered in over 1,000 articles. In the US alone, research showed the movie had reached 38m people, 54% of whom now regard IBM more positively.Read the full case study

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 34

Case study NikeCampaignGreatness

AdvertiserNike China

AgencyWieden+ Kennedy, Mindshare, AKQA, Razorfish

MarketChina

SourceWarc Prize for Asian Strategy, 2013

The sportswear giant took a real- time approach to stand out in China, adapting a global strategy to challenge Chinese notions of greatness.

CHALLENGE

Competition in the Chinese market is intensifying. Nike was not an official sponsor of the London Olympics in 2012, but wanted to capitalise on the interest around the Games.

The brand wanted to find a way to break down the barriers of participa-tion, using its global ‘Greatness’ idea to challenge the Chinese obsession

with winning, and did so by reaching out to young people.

SOLUTION

Nike launched a 17-day multimedia counterstrike against traditional ideas of ‘greatness’. The integrated campaign involved television, print and outdoor, and was spearheaded by a 24/7 social media command centre that enabled Nike to listen, in-teract and respond in real-time to the Olympic events, celebrating all the athletes rather than just the winners.

The campaign started with a TV spot to establish the brand’s point of

view and was driven further by online media. The command centre was wired up with live feeds of the Games and online communities. Dialogue with the audience was expanded through the Sina Weibo platform.

RESULTS

Nike dominated online conversation in China at crucial moments through-out the Olympics, such as the fall of hurdler Liu Xiang. It earned over 168 million impressions on social media and hundreds of millions more me-dia impressions, both on and offline.Read the full case study

Nike responded to events at the 2012 London Olympics as they unfolded

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 35

Viewpoint Focus on context to stand out

To avoid be-ing drowned out by the ‘clutter’, brands must consider the context in which their content is served

Despite the rising importance of digi-tal, many large organisations are still fundamentally geared up to deliver traditional format, or ‘360-degree’ campaigns. Once the marketing ‘ideal’, these promised brand consist-ency across multiple touchpoints. But they ignored the different role each channel plays. Marketers missed an opportunity to engage outside of the allotted media buy.

A focus on content rather than campaign changes this: a shift in focus from 360-degree to 365 days.

In many respects the marketer’s task remains the same as it always was: deliver quality and relevant content to engage consumers in the brand or service. But the prolifera-tion of channels and formats through which brands can distribute their content means that considering the context, as well as the content, is more critical than ever.

Many clients are taking a mobile-first approach to content and service offerings. Take retail, where the context of mobile demands very

different content than other chan-nels: price comparison of products in store, for example. Or take the rise in native advertising formats, where the host website defines the content format. A straightforward 360-degree approach to content from the main campaign creative is not relevant.

To rise to these challenges, many organisations need to make some fundamental changes to the ‘market-ing operating model’.

Organisation: Who owns content? Where and how is it produced? There are fundamental questions on how marketing departments structure themselves and how best to use third-party suppliers and agencies.

Data: The opportunity to drive per-sonalisation of content, and to gain insight on consumers’ preferences and behaviours through the increas-ingly rich data that surrounds online channels, means some organisations will look to bring control of more mar-keting data in-house.

Technology: The technology that brands can utilise to distribute and

leverage content has matured rapid-ly over the last two years. We are see-ing many enterprise-level marketing technology solutions being brought in-house – Adobe, Salesforce Market-ing Cloud, Teradata, to name a few.

Process: To shift from 360-degree to 365, organisations need to change not just the campaign management process, but also how they manage content licensing, digital rights man-agement, community governance, crisis planning, PR and more.

People: All this is leading to the introduction of senior digital roles, such as the Chief Digital Officer.

In summary, to avoid being drowned out by the ‘clutter’, brands must consider the context in which their content is served. Many will need to rethink how they structure and manage their marketing organi-sations, technology platforms, data, people and processes.

Tom JefferiesSenior Manager, Deloitte’s Market-ing & Insight Practice

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 36

KEEP UP WITH NEW FORMATS

The range of content marketing platforms is growing rapidly, and the rise of mobile is putting greater emphasis on images and video. Some brands have found there is a first-mover advantage to using platfroms such as Twitter’s Vine early. However, as Coca-Cola has found, brands that want to stay ahead of the pack may need to hire in-house expertise.

CLARIFY OBJECTIVES

Questions remain over the effectiveness of content marketing. As AB InBev discovered, it is important that brands are clear on what their con-tent is designed to achieve, what the expected audience is, and what its ‘life cycle’ should be. This will become more important as content strate-gies polarise (for example, towards both long-form video and short clips). PLAN FOR DISCOVERY

It is crucial that brands producing content have a strategy for discovery. Usually this will involve a mixture of paid promotion, plus earned and owned media activity. Marketers should keep tabs on the rapidly expand-ing range of options for promoting content.

PLAN ACROSS PLATFORMS

It is important to brands to create content that can be broken down and reassembled in different formats for different occasions. A bite/snack/meal approach to content, as used by L’Oréal, is one way of doing this. This builds scale and wrings more from the content investment.

Implications Succeeding with content

1

2

3

4

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 37

MEDIA

RISE OF THEMACHINES>> What the rise of programmatic means for marketers

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 38

1 Investment in programmatic buying is rising rapidly. Publishers are opening up more of their inventory to automated buying systems, and brands are finding a growing range of uses for this type of media-trading.

2 The key benefit for brands is not cutting costs, but refining the targeting of consumers, and achieving better results from their online adspend.

3 Key hurdles include the ‘viewability’ of online ads. There is also a lingering caution among some brands, particularly outside the US, about losing control of where an ad is seen.

4 The rise of programmatic puts greater focus on how brands and agencies manage datasets. The need for better data planning is driving major changes within client-side marketing teams, and within the agency world.

IN THIS CHAPTER...

At a glance The rise of programmatic

We simply need data to be more efficient and more effec-tive at reach-ing the right people at the right timeJeff Holecko, North American Media Manager, Kimberly-Clark

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 39

Programmatic refers to the auto-mated buying and selling of ads. The term covers real-time bidding for online display ads, retargeting solu-tions, and automated email, among others. While the technology behind programmatic is not new, 2013 saw a considerable increase in invest-ment – according to Magna Global, programmatic spend rose by 56% in the US to $7.4 billion in 2013.

The challenges for marketers are to understand the potential of this new trading system, not just for direct-response advertising but for brand work too, and how best to use it within their media mix. These challenges involve rethinking the structure of marketing departments, and the way they generate and man-age data.

According to a recent study by Win-terberry Group and the IAB, market-ers were most interested in using the technology to target consumers with greater accuracy and serve contextu-ally relevant ads. There has been a rapid shift in the US towards buy-

Brands shift budget to programmatic...

that we are not reaching one con-sumer 75 times and then missing out on the key consumer we should have been speaking to,” said Erica Bigley, Ford’s Digital Media Manager.

Kellogg is using automated buying tools for over half of its digital adver-tising. “Programmatic can be used for brand marketers,” stated Bob Arnold, its Global Digital Strategy Director. “It is a direct response tool, and we are driving a round peg in a square hole, but we’re still seeing tremendous results anyway.”

Media owners, particularly in the US, have started to sell more of their premium inventory via

ing audiences, rather than buying ads on specific sites. And a growing number of brands have been willing to share their successful experiences and programmatic forays.

Kimberly-Clark’s North American media manager Jeff Holecko re-vealed its automated system means messages can be tested in “real time or near real time” and reach a “higher quality consumer”.

Ford has extended its program-matic ad buying beyond digital display formats to incorporate online video. “Programmatic has allowed us to clearly define our swimming lanes, who’s going to buy what, to ensure

One of 2013’s hottest media trends was programmatic buying, and brands can expect to hear much more about this topic in 2014.

Program-matic has allowed us to ensure that we are not reaching one consu-mer 75 times and then missing out on the key consumer we should have been speaking toErica Bigley, Digital Media Manager, Ford

Ford has extended its programmatic ad buying to include online video

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 40

programmatic. Online publishers are naturally willing to extol the virtues of programmatic buying. At ad:tech San Francisco, AOL presented cases of its work with Verizon and Intuit’s TurboTax accounting software, the latter partnership boosted online conversions at a key period.

Hurdles remain in this space. The ‘viewability’ of digital ads, particu-larly in video, has become a major issue, and there are moves within the US industry to implement an industry standard. One argument, proposed in a recent Admap article, is that brands should focus digital metrics on viewed ads rather than served impressions. There is also an issue on mobile: programmatic tends to rely on cookie data, and mobile is a cookie-free environment.

Although programmatic buying is growing rapidly, its uptake outside the US is slower. As was noted at a recent conference in London, in some markets, including the UK, big brand advertisers remain cautious about losing control of where their ads are placed. And big brand work, such as a home-page takeover, is rarely done via programmatic.

Programmatic rests on data, and success requires smart data plan-

...but face fresh data challengesstrategies and operating a trading desk to access online ad inventory.

The importance of data planning, and the alignment of data with digital buying, can be seen in recent moves by the agency holding compa-nies. One of the reasons given for the proposed merger of Publicis Groupe and Omnicom was the need to keep up with the “explosion of big data, analytics and insights”.

Social networks are also moving into programmatic in a serious way – unsurprisingly, given how much consumer data they sit on. Facebook and Twitter are growing forces in the online display world, and are rolling out a growing number of ad products that make use of their data.

More broadly, brands can expect the principles of programmatic buy-ing to be applied to other media. Allstate, for example, has trialled addressable TV. And the focus on data has applications beyond media buying – from content optimisation to audience segmentation to broader business processes. The Winterberry Group/IAB report concludes by offer-ing a vision of programmatic being “everywhere” based on “its ability to drive meaningful value across audi-ences of scale”.

ning, and the ability to mesh different data sources. Brands must work out when and how to talk to consumers based on what is known about them; the biggest challenge is matching, say, people in a customer database to individuals online, particularly as they move across devices.

These requirements are changing the relationship between brands, agencies, and the tech providers that operate in this space. A recent poll found that nearly half of marketers plan to work directly with tech plat-forms, bypassing the media agen-cies. And some tech platforms claim that media agencies have a conflict of interest by both planning data

Allstate used addressable TV to reach people who rent property

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 41

Programmatic spend set to rise sharplyKEY FACTS PROGRAMMATIC SPEND IN THE US, PLUS OTHER KEY MARKETS

Total

Desktop

Video

Mobile

Total

Desktop

Video

Mobile

As % of online display ad market

US in the lead: 2017 penetration of programmatic as % of total online display advertising

2013

UK

Fra

nce

Aus

tra

lia

Ger

ma

ny

Spa

in

Chi

na

US

Net

herl

and

s

Japa

n

83% 60% 59% 56% 52% 40% 33% 31% 23%

O

ther

pro

gram

matic

O

ther

pro

gram

matic

Rea

l-time bidding

Rea

l-time bidding

$7.4bn

47%

53%

2017

$16.9bn

62%

38%

53%

58%

25%

68%

83%

87%

69%

88%

Source: Magna Global, via Warc News

Data released by Magna Global shows how quickly pro-grammatic buying is growing, particularly in the US.

The study estimates that 2013 spend via programmatic will be $7.4 billion in the US, a rise of 56% versus 2012. It is set to grow to $16.9 billion by 2017.

Programmatic already makes up more than half of the US online display market, though it is less penetrated in video. By 2017 it will account for more than 80% of online display, including 69% of video spend.

Internationally, Magna Global expects programmatic spend across nine key markets to jump from $12 billion in 2013 to $32.5 billion in 2017. The US will remain by far the biggest market by absolute spend; programmatic will also take a higher share of online display advertising in the US than elsewhere.

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 42

Brands have different aims to publishers KEY FACTS

A survey of advertisers and publishers by the Winterberry Group and the IAB US found that 85% of marketers said they had implemented automated real-time bidding, and 91% expected to do so over the next two years.

Interestingly, the survey found that advertisers are less inter-ested in using automated trad-ing to cut costs than they are to improve targeting.

For publishers, the motivations behind the shift to automated selling are a mix of improving efficiencies and expanding yields from digital inventory.

The findings suggest that pro-grammatic buying is now seen as more than just a way for ad-vertisers to purchase remnant inventory cheaply.

PANELISTS

Which objectives are driving your organisation’s interest in progammatic approaches?

Publishers

Advertisers

Source: Winterberry Group/IAB, ‘Programmatic Everywhere?’, November 2013, via Warc

Improve operational efficiency

Efficiently value and transact digital media

Expand yield from owned inventory

More effectively target consumers across digital media

Deliver a better customer experience

Improve speed-to-market

Improve relevance of market messaging

Improve insights into consumers

63%

33%

63%

49%

61%

12%

26%

55%

16%

30%

12%

9%

9%

24%

7%

21%

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 43

Data and technology were key to success in reaching the correct audience

CHALLENGE

More than 70 percent of Australians are online, thus digital consumption significantly influences purchase de-cisions, particularly in the telecoms category. As such, telcos are battling over this rewarding market space, placing more emphasis and budgets on digital advertising. The result is inflated advertising costs with pre-mium inventory selling out months in advance, leading to a cluttered and fragmented customer experience.

Telstra was also aware that con-sumers use the web to help make informed decisions and that they demand relevant experiences – at an appropriate time – from a brand.

SOLUTION

Telstra wanted to deliver relevancy at scale to the sophisticated digi-tal consumer, moving from buying digital media using a high-cost blanket reach model to understand-ing the individual and what they may need from Telstra. To achieve this

Case study TelstraThe Australian telco changed the way it marketed its products, re-flecting the way that digital con-sumption is having a major impact on telecoms retail.

Campaign Telstra Turned On...

Advertiser Telstra

Agency DDB

Market Australia

Source Australian Effie Awards 2013through a combination of Google’s

technologies, Datalicious’s third party data tracking capability and OMD’s Real Time Bidding Exchange trading desk. Through this set up, the program ran as one single ‘intel-ligence’ platform, which was pro-grammed to optimise sales conver-sion automatically.

RESULTS

For Telstra the programme has be-come a key attributable online sales channel, delivering an uplift in sales volume over the time it has been live. The programme is now core to the company’s business planning.Read the full case study

it completely altered its advertising approach, behaving differently and communicating in a new voice.

It developed an ‘always-on’ plat-form, which used data-intelligence to identify audience segments, applied customer-centric planning in creative delivery, and attribution modelling to optimise sales performance. Telstra used data to track audience behav-iour, identify who they were, where they were in the purchase cycle, and understand what they were interested in. This intelligence then determined the most valuable media inventory to purchase, reaching the right audience.

The program was assembled

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 44

CHALLENGE

Kellogg’s primary KPIs in its media buying include pre-market quality, audience delivery and in-market ef-fectiveness. Applying these to its TV buying has proved challenging as, despite numerous niche channels, targeting has been limited to broad age/sex definitions.

Kellogg has had great success with digital addressability, record-ing a 64% improvement in targeting in 2012, fuelled by programmatic media buys and increased transpar-ency through KPI track-ing. Such success led it to wonder what – as a

Case study KelloggProgrammatic thinking is being ap-plied in new areas, as demonstrat-ed by Kellogg and Starcom MediaV-est in a recent US campaign.

Campaign Special K Fall Challenge

Advertiser Kellogg

Agency Starcom MediaVest

Market US

Source ARF Experiential Learning: Audience Measurement 8.0, 2013

scious women with a more upbeat, open way to manage their weight.

For a four-week push across 25 networks, Kellogg used DirecTV, which offered the largest national household-addressable TV plat-form. Experian data on households with weight-conscious women were matched to the DirecTV addressable homes to create the target group while Kantar Media presented meas-urement and reporting.

RESULTS

The campaign was more efficient than a standard media buy. 99.9% of the weight conscious homes were reached with at least one ad, com-pared to an average of 73% for linear campaigns. All of the addressable impressions were delivered to weight conscious households, compared to the 38% delivered in target for linear impressions. This highly targeted activity also increased frequency as on average the spot was seen eleven times, compared with 2-5 times for regular campaigns. Addition-ally there was a slight increase in time spent watching the targeted commercial for compared to linear campaigns.Read the full piece

mass marketer with niche needs and multiple brands – it could achieve through addressable TV.

SOLUTION

There are currently 20 million US households enabled with address-able TV from suppliers such as DirecTV, Dish, Cablevision, and Comcast. Starcom MediaVest has begun to offer clients the opportu-nity to serve ads only to households matching a specific target definition. Those targets can be identified using one or several databases populated with demographic, lifestyle, and/or behavioural data.

Kellogg’s objective was to enhance the efficiency of its TV buy through the application of data and ad-dressable technology. It chose its Special K Fall Challenge campaign

for the buy, where the campaign goal was to reach

weight-con-

Kellogg used addressable TV to target weight-con-scious women

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 45

Viewpoint The need for a new skillset

There is a need for advanced analytical skills for managing large data sets and ef-fective data planning

Just ten years ago, media agencies were the middle-men between the publisher and the advertiser. Adver-tising technology has significantly altered this, as digital display media buying moves towards the self-ser-vice search engine model.

Advertising networks were the first type of data-driven media buying. They bought inventory from pub-lishers, aggregated it and targeted audiences based on performance algorithms. Compared with buying direct from the publisher, the inven-tory was cheaper and was optimised to the best-performing areas. The downside for an advertiser was that they did not know exactly where their ads were appearing; a deter-rent for brand-sensitive advertisers. Publishers, on the other hand, felt they weren’t necessarily getting fair market value. And consumers were swamped with ad clutter.

To address these problems, ad ex-changes appeared. These are tech-nology platforms where advertisers meet publishers and digital inventory

can be bought in real time (real-time bidding). They offer advantages over buying inventory directly from a pub-lisher sales team, including natural price optimisation for publishers and fewer irrelevancies for consumers.

Data-driven buying is spreading to non-digital media. Interpublic is working with broadcasters on an automated TV ad buying system. “There is so much intelligence and data out there, we have to capitalise on that, and it cannot be restricted to digital media,” Matt Seiler, Chief Executive of IPG Mediabrands, which is building the system, recently said.

As a result, there is a need for new skillsets and roles, from client to agency to publisher. There is a requirement for advanced analytical skills for managing large data sets and effective data planning.

To stay competitive, agencies are creating their own media trading desks, focusing on content-based deals and developing propositions such as strategic or advisory servic-es. Technical expertise is required to

build these platforms, with agencies hiring technical product managers and developers, roles historically seen at publishers and technology companies. The focus on strategic and advisory services demands busi-ness consulting skills, which have historically been more commonplace in management consulting firms.

Client-side, marketers will need to understand this complex landscape, and which capabilities are best kept in house. There are questions over functional expertise in supplier selec-tion, supplier remuneration and the balance of quality versus cost.

Brands can expect disruption across the marketing communications indus-try, with a continuous learning curve for all involved as technologies and platforms evolve at lightning speed.

Julie ColemanSenior Consultant, Deloitte’s Mar-keting & Insight PracticeSusie NursawManager, Deloitte’s Marketing & Insight Practice

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 46

LINK TO THE PURCHASE PATH

Brands see programmatic principally as a way to target defined audi-ences at scale. As the Telstra case shows, sophisticated brands can use data to tailor messages to consumers depending on where they are on the path to purchase. There are huge opportunities to push this further.

DECIDE WHO HANDLES THE DATA

Smart data planning is crucial if brands are to make the most of programmatic. Some brands are taking data management in-house, working directly with publishers and tech platforms. How to handle the various datasets, and who owns the data sourced from digital platforms, are important considerations.

EXPECT A GROWING RANGE OF PRODUCTS

As online media owners such as Facebook and Twitter recognise the power of data-driven buying, brands can expect a greater spread of automated ad products, including data-driven banners. And as the Kellogg example shows, the principles of data-driven buying will be extended to a growing number of ‘traditional’ channels.

RECOGNISE THE LIMITATIONS

It’s important to understand the ongoing issues around programmatic buying, including viewability and the difficulty of tracking consumers on mobile. The industry will take steps to resolve some off these issues in 2014, but progress is likely to be slow.

Implications The shift to programmatic

1

2

3

4

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 47

MULTICHANNEL

CROSS-SCREENEFFECTIVENESS>> New thinking on how channels can work together

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 48

1 Research projects into social media have struggled to isolate its impact. There can be a quantifiable effect when it is used for customer service; otherwise social is most effective as part of a broader strategy.

2 The rise of TV viewing on different screens gives marketers an opportunity to increase reach cost-effectively. How-ever, there is no evidence that consum-ers exposed to ads on multiple screens are more likely to purchase a brand.

3 Data from ESPN shows the rise of multiscreen viewing: one in three of its viewers watch ESPN content online. Brands have, arguably, been slow to adapt to this change.

4 An ANA study suggests brands want to increase their use of multiscreen advertising campaigns significantly, but measurement issues remain a major obstacle to them doing so.

IN THIS CHAPTER...

At a glance Working across channels

We have created more and more screens crowded with more ad clutter than ever beforeRandall Rothen-berg, President/CEO, IAB

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 49

In 2013, a Coca-Cola executive caused a stir when he cast doubt on social media’s ability to drive sales. The media ran with the soundbite, but missed the deeper message of the presentation by Eric Schmidt to an ARF conference. He argued that although there was minimal observ-able link between social ‘buzz’ and offline sales, the role of social may be different. “If buzz is not a direct motive for sales,” he said, “the information-sharing it facilitates may well be the oil that, in part, enables the engine to run.”

His comments reflect a push by the marketing and media industries to understand the role different chan-nels can play. This desire reflects the ever-growing number of screens and platforms available to brands.

The importance of improving met-rics across media was underlined by Randall Rothenberg, President/CEO of the IAB in the US. He told a recent conference. “We have created more and more screens crowded with more ad clutter than ever before. If we don’t change, we risk disenfranchis-

Mixed views on the role of social...

to effective social programmes. But, echoing Schmidt’s comments, it admitted it was extremely difficult to unpick social’s impact from that of other channels; in fact, it concluded that social was most effective when integrated with other channels.

There is also a lot of work under way to understand media consump-tion across screens. This is important as consumers watch more video on connected devices – research in 2013 found that 38% of US smartphone users watch video clips on their handsets, and 10% watch full-length TV shows. A separate study found mobile TV viewing varied greatly ac-cording to genre and viewing time.

ing consumers, damaging marketers, and putting many of the people in this room out of business.”

So what have we learned that can help marketers in 2014?

There has been some progress in the social space. A UK research pro-ject called #IPASocialWorks is seek-ing to use examples of best practice to build a body of “case law” for using social. One area in which the value of social could be quantified was in customer service: for example, telecoms giant BT has shown it saves £2 million a year by shifting customer service work to social media.

For communications, the team behind the project listed seven steps

The industry is making progress (albeit slowly) on figuring out how best to combine different channels. If marketers

wish to understand the impact of digital media, they must build measure-ment capability in parallel with the communi-cations capability.Eric Schmidt, Senior Manager, Marketing Strategy & Insights, Coca-Cola

BT saves £2 million a year by shifting customer service work to social media

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 50

There are two major issues arising from this behaviour. The first is the continued rise of ‘multiscreening’ (watching TV while using another de-vice). A recent study from OMD found that UK consumers switch devices 21 times an hour while watching TV.

Research in the UK has argued that brands underestimate ‘multi-screening’, concluding that this is “quite a new behaviour but also one that has quickly become automatic”. It argued that multiscreeners are more likely to watch TV for longer and remain in the room when ad breaks were on. Twitter recently unveiled a new ad product allowing brands to capitalise on these emerg-ing multiscreen habits.

The second issue is the impact of cross-device TV viewing on adver-

...but ads work across devicesmessages, regardless of whether they are watching on a TV, PC, tablet or mobile, although platform type seems to affect recall levels. A separate study from Australia looked at cross-device synergies, and found that, as long as the format of the advertising was the same across platforms, the choice of device made no difference to the ad’s impact. It concluded: “Advertisers can use different devices to reach certain demographics, without sacrificing advertising effectiveness.”

A major theme for 2014 will be bringing metrics used for different channels closer together. A recent Deloitte report predicted more sophisticated TV viewing measures to account for cross-screen viewing. In digital, the challenge is to move away from measures of efficiency (basically, how cheaply a brand can reach consumers) towards metrics that help marketers build brands and drive sales. As Schmidt concluded: “This development in digital capabil-ity has outpaced digital measure-ment capability development. Since mix modeling depends on robust metrics, understanding digital im-pact on sales will only be as good as the measurement capability.”

tising effectiveness. The impact on sales of cross-media campaigns was investigated by Mars and a team of academics. The conclusion was that ads worked on any device, but that there is no evidence that exposure to ads on both TV and online leads to greater effectiveness. “Advertising – both online and television – drives sales among those who are reached, but no cross-media synergy effect is apparent. A mixed-media campaign may be successful if it broadens reach cost-effectively but still may not generate additional sales synergies.”

The finding that extra devices may deliver extra reach effectively was supported by two pieces of research from Disney. One, by ABC Television and Zenith, suggested that viewers respond in a similar fashion to ad

Although ads can work on any device, Mars could not find any evidence for a cross-media synergy effect

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 51

Marketers lag multiscreen consumers

Now

In three years

Several studies released in 2013 suggest consumers are adopting multiscreen behaviour more quickly than brands.

A US study by media company ESPN found significant levels of multiscreen viewing among its audience: one in three of its monthly users consume ESPN content online, with smart-phones accounting for nearly as much reach as PCs.

A separate US study by the As-sociation of National Advertis-ers found that brands recognise the importance of multiscreen campaigns, but most are not yet investing significantly in this area, and 71% are not integrat-ing activity across screens.

According to the ANA study, one of the key barriers to greater adoption of multiscreen marketing is inconsistent and non-comparable measurement between screens.

KEY FACTS CONSUMERS ARE MULTISCREEN...

...BUT ADVERTISERS AREN’T

ESPN monthly users by platform

Marketer attitudes to multiscreen marketing

ESPN monthly reach (million)

of marketers are not managing multi-screen marketing in an integrated way

136

29

Total

TV only

PC Smart-phone

Tablet

24

466%

71%

21%

12%

% budgets invested in multiscreen campaigns

% who believe multiscreen is ‘very important’

20%

50%

48%

88%

0% 20% 40% 60% 80% 100%

Source: Association of National Advertisers, via Warc News

Digital only

TV & Digital

Source: ESPN, via Warc Event Reports

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 52

A closer look at mobile TV viewers

Data from Deloitte shows that just over half of UK mobile phone owners stream video content on their devices, with 10% doing so daily.

Streaming video content is a less frequent activity than send-ing messages, using search, or updating social media.

Separately, a US research project sought to examine the role different devices played for consumers in terms of viewing television. It looked specifically at a group of consumers who watch TV via tablet and smart-phone.

Just 7% of this sample’s TV viewing takes place on mobile devices. Interestingly, most of this viewing still takes place within the home, though the workplace is the second most-popular location for mobile TV viewing.

KEY FACTS MOBILE TV VIEWING

Where does TV viewing take place? (% of US mobile TV viewers who watch in these locations)

Source: Laura Cowan & Christopher Neal, ‘TV Untethered’, ARF Experiential Learning: Audience Measurement 8.0, via Warc

Source: Deloitte, Deloitte Consumer Review. Beyond The Hype: The True Potential of Mobile, May 2013

82

TV

Tablet

Computer

Smartphone

In own home At work / at the office

At another’s residence

In transit / commuting

Commercial location

5 814

23

5 42

12

2 318

9082

64

82

6 596

Daily At least once a week At least once a month At least once a year Never Don’t know

Frequency of smartphone or mobile phone activities (% of UK mobile owners)

Send text or picture messages

Update social networking sites

Use the camera function

Make voice or video calls

Online banking

Searching for information

Stream video content

47

37

26

28

13

11

10

25

28

25

17

25

33

20

11

13

16

9

10

27

14

5

5

4

4

3

17

46

10

15

28

38

46

9

7

2

2

2

3

3

3

3

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 53

CHALLENGE

AT&T wanted to gain in-depth insights into ROI from its three main forms of television output: cable, broadcast networks and sponsorship.

The brand has historically com-mitted 35%-60% of TV budget to sponsorships. Such sponsorships are known to drive more short-term sales than broadcast or cable, but it wanted to establish if premiums demanded by sponsorship rights-

Case study AT&TMarketing-mix assessment helped the US telecoms giant improve its return-on-investment from TV and sponsorship spend.

Campaign Assessing the effectiveness of TV sponsorships, network prime-time, and cable properties

Advertiser AT&T

Market US

Source ARF Audience Measurement 8.0, 2013

holders are higher than the effective-ness justified.

SOLUTION

AT&T used its Market Mix Models and existing data to answer this question. These models, which have been in use for over five years, have proved highly predictive of sales and focus on short term impacts of media.

For this analysis the models required greater granularity of TV spend information. The TV rat-ing point series was provided on a program level. This level of detail included when the program aired by day and hour as well as channel,

regardless of whether or not it was a sponsored property. The placements were grouped into higher aggrega-tions based on a prior knowledge of shows and demographic informa-tion. These groupings were further aggregated into Broadcast Network, Sponsorships, and Cable.

RESULTS

The key finding was that sponsor-ships do drive more short-term sales than broadcast network or cable. However, as suspected, their effec-tiveness is not enough to justify the premiums charged for sponsorship rights. The brand was able to estab-lish that sponsorship cost-effective-ness varied considerably by property.

Sponsorships are the most effective at driving sales, followed by broad-cast network then cable. However, AT&T found the inverse for efficiency, where cable was the most efficient and, generally, sponsorship the least. The research led to changes in the way marketing investment was al-located, moving spend from spon-sorship into broadcast and cable. Within these, the company examined its least and most effective program-ming buys and adjusted accordingly. Read the full case studyAT&T’s reassessed its television spend through marketing-mix modelling

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 54

CHALLENGE

Bulmers wanted to be able to dem-onstrate why a Facebook community was worth investing in and engaging with. Social media is often criticised for a lack of accountability, with the link to sales difficult to prove. Bulm-ers decided not to look at sales when assessing the value of social; instead it looked at savings. The key focus of this undertaking was on value, ena-

Case study BulmersThe cider brand approached social ROI by examining money saved from its Facebook activity, rather than sales generated.

Campaign Valuing Bulmers’ Cider Fans

Advertiser Heineken

AgencyWe Are Social

Market UK

Source Admap, July/August 2013

bling the true worth of its Facebook fans to be ascertained.

SOLUTION

Given the rapidly changing pace of social media there is no ‘one size fits all’ approach to measuring value. The brand looked to challenge standard thinking around typical metrics (engagement, reach etc.) and apply more traditional research methodologies to a social context.

So the agency developed an online panel survey to model the incremen-tal value of a Facebook fan of Bulm-ers versus a normal UK cider drinker.

This survey asked questions around drinkers’ attitudes and consumption behaviour across a range of cider brands, including Bulmers. This sur-vey was then placed in a Facebook tab and made accessible via a status update to Bulmers fans, while data from a control sample of general cider drinkers was gathered.

With claimed consumption data from fans versus the control sam-ple, it was simple to determine that Bulmers fans were more favourable towards it than with competitors and, crucially, consumed more of the brand than a non-fan.

RESULTS

It was calculated that Bulmers Face-book fans were worth £3.82 more a week, or £199 per year – around 38% more than the control sample.

As well as understanding fan purchase behaviour, it also revealed that, on average, 75% of Bulmers fans were likely to share positive brand experiences and promotions with Facebook contacts. The study suggests that its Facebook fans have a tangible value to Bulmers and that a Facebook community is worth investing in.Read the full case studyBulmers found that Facebook fans demonstrate tangible value to the brand

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 55

Viewpoint Spontaneity requires planning

A 70-20-10 rule can put marketers in a stronger position when an opportunity presents itself

The potential for the interplay between channels is there, but time, creativity and co-ordination are required for it to be grasped.

An interplay between the me-dia used can amplify impact and engagement when done well. This is a focus on the ‘multiplier effect’ from the creative and holistic use of media channels, which is made possible through a clear content strategy.

A great example is the launch of the movie Anchorman 2. Promo-tions started nine months before the screening to build up excitement and engagement. The campaign has involved a real news channel performance by the character of Ron Burgundy, a series of online adverts for the Dodge Durango (including one advert dedicated entirely to the glove box) and a Facebook page amassing over 3 million likes. The Dodge adverts reportedly contributed to an increase in sales of this vehicle of 59% in the first month.

Across so many social media success stories, there is a golden

thread: preparation is key. The Oreo case study shows how big the effect can be. Its tweet during the blackout at the Super Bowl was widely ac-claimed. Retweeted more than 10,000 times soon after the blackout, the tweet said ‘Power out? No Problem’, and was accompanied with imagery that had the title ‘You can still dunk in the dark’.

Although no one can predict a blackout, the ability to react came from having a prepared content strat-egy and the set-up in place of peo-ple, process and technology to seize the moment. A 70-20-10 rule – creat-ing 70% of the social media content well ahead of time, 20% during the campaign and 10% at the immedi-ate moment – can put marketers in a stronger position when that opportu-nity presents itself.

Embedding flexibility in ways of working is the key enabler. Being at the right place at the right time is a core skill of the social marketer. Better engagement of marketing with content and product develop-

ers is one critical avenue to explore, as working more ‘upstream’ across longer periods than a traditional campaign lifecycle is more common.

This flexibility also requires a new way of working with ‘talent’ and influential figures, as social media impact comes not just from compa-nies but from individuals’ personal accounts. This means that the lines of responsibility, and indeed the very identity of the voice of the messag-ing, are now more blurred, but huge reward can be reaped.

To an extent, good content is good content regardless of the format or the channel used. However, social success is helped by the effective preparation that comes from a clear content strategy that recognises the different roles of different media channels, and the operational fore-sight to ensure capability is in place to seize the moment.

Alex ThomManager, Deloitte Marketing & Insight Practice

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 56

BE CLEAR ON SOCIAL’S ROLE

The latest research into social media stresses that effectiveness models will vary according to the role social plays for a brand. Organisations using social for customer service, for example, might look at cost sav-ings versus alternative methods of service. In the communications space, social media is most effective as a communications tool when it is used alongside other channels. As Coca-Cola recognised, looking for a direct link between social media and sales may be futile; a more nuanced un-derstanding of the role it plays will be necessary.

ASSESS REACH ACROSS SCREENS

Several academic studies suggest that multiscreen video campaigns can deliver additional reach for brands cost-effectively while delivering a similar impact to TV. For that reason, focusing on reach should be a prior-ity for marketers when planning across screens. For example, running ads on smartphones can help brands reach young male consumers.

EXPECT METRICS TO LAG CONSUMERS

Inconsistency of metrics between platforms remains the biggest issue for marketers wanting to invest in multiscreen campaigns as consumer habits evolve. As the AT&T case shows, brands can use their own data to build models of channel effectiveness, but the more diverse the channel mix the harder this will be. In some markets there may be some progress in 2014 on cross-media, single-source data that will help fill these knowl-edge gaps; overall, however, progress is likely to be slow.

Implications Working across channels

1

2

3

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 57

ADSPEND

THE OUTLOOKFOR 2014>> Global trends in advertising investment

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 58

1 Growth in advertising investment is ex-pected to accelerate in 2014 across ma-jor markets. 2014 is a World Cup year, and Brazil (the host nation) is expected to see a marked pick-up in adspend.

2 Investment in industry/services and FMCG was a key factor in global adspend growth in the first half of 2013, accoding to Nielsen data.

3 Unsurprisingly, investment in digital ads is growing much faster than invest-ment in any other channel. By contrast, spend on magazines and newspapers is expected to contract globally for a third straight year, though the rate of this decline is slowing.

4 Global marketing sentiment rebounded in late 2013 after a mid-year dip. Ex-pectations for marketing budgets saw a particularly strong improvement across the year in Europe.

IN THIS CHAPTER...

At a glance Adspend in the year ahead

Source: Warc, Interna-tional Ad Forecast

4.3%Forecast in-

crease in 2014 advertising

spend across 12 major markets

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 59

Advertising spend across the 12 major markets tracked by Warc’s International Ad Fore-cast is expected to increase by 4.3% in 2014 (in current US dol-lar prices). This is higher than the 1.5% growth for 2013.

The BRIC countries remain the strongest growth performers (in local-currency terms). In its World Cup year, Brazil is ex-pected to see growth accelerate from 6.5% in 2014 to 10.4%.

Adspend growth in China and Russia is also expected to ac-celerate significantly

In the US, still by far the big-gest advertising economy, growth is expected to acceler-ate from 1.5% in 2013 to 3% in 2014.

KEY FACTS 2014 FORECAST FOR 12 MAJOR MARKETS

The global adspend outlook

Source: Warc, International Ad Forecast

2014 forecast adspend totals, US$bn (current prices)

Forecast year-on-year % change, 2014 vs 2013 (local currencies)

UK

Ger

ma

ny

Bra

zil

Ca

nad

a

Aus

tra

lia

Rus

sia

US

Japa

n

Chi

na

Fra

nce

Italy

Ind

ia

Ind

ia

Ca

nad

a

UK

Aus

tra

lia

Ger

ma

ny

Italy

Rus

sia

Bra

zil

Chi

na

US

Fra

nceJa

pan

161

11

50

10.4

45

10.2

26

8.7

24

5.4

20

4.1

15

3

15

2.9

15

2

13

1.6

86

00.7

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 60

Data from Nielsen for the first half of 2013 (the latest avail-able at the time of writing) shows that the FMCG category accounts for 21% of global advertising spend.

Two of the top five categories, industry/services and FMCG, are showing annual adspend growth of more than 5%.

Telecommunications, which was the fastest-growing catego-ry in H1 2012, saw growth fall to just 0.9% in H1 2013.

Two of the top five categories, entertainment and automotive, showed net declines in adver-tising spend in H1 2013.

KEY FACTS GLOBAL CATEGORY SPEND DATA, H1 2013

Analysis of spend by category

89% 93%

54%

25%

Share of global adspend by category

Growth by category (H1 2013 vs H1 2012)

Source: Nielsen, Global AdView Pulse

7.2%

5.7%

5.2%

2.5%

1.3%

0.9%

0.1%

-0.2%

Entertainment

Financial

Automotive

Industry/services

FMCG

Durables

Healthcare

Distribution channels

Telecommunications

Media

Clothing and accessories

-1.2%

-1.7%

-3.1%

Total global adspend (H1)

$161bn

FMCG

Entertainment

Industry/services

Healthcare

Automotive

Other

37.7%

9.2%7.5%

11.3%

13%

21.3%

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 61

Unsurprisingly, internet is the media channel expected to post the sharpest growth for 2014. At current prices, it is expected to grow by 12.1% across the 12 major markets in Warc’s Inter-national Ad Forecast. Internet remains the second-biggest media channel by spend.

Magazines and newspapers will see net adspend decline for the third consecutive year. However, for both media the rate of contraction will be lower than in 2012 and 2013.

TV, still by far the biggest chan-nel, is expected to post solid growth of 3.6%, following a 0.2% dip in 2013. This growth is largely being driven by emerg-ing markets.

Despite registering net ad-spend growth, TV is losing share in most markets. Brazil is a notable exception, with TV spend expected to outperform the all-media average in 2014.

KEY FACTS

Advertising spend by media channel

46%

36%

TV Internet

2014 FORECAST (12 MAJOR MARKETS)

Forecast growth by medium across all markets, 2014 vs 2013 (US$, current prices)

TV and internet % growth forecast by market, 2014 vs 2013 (local currencies)

Radio

Magazines

Internet

Cinema

Outdoor TV

4.1

5.7

16.8

33 21.7 1.

6

8.2

11.2

15.3

12.3

10.3

9.9

8 7.7

6.6

5.4

27

2.3

4.9

2.4

3.2 2 1.

7

0.5

RussiaIndia China Brazil Canada Australia UK US Germany

12.1% 6.4% 3.7% 3.6% 2.2%

-1.9% -4.4%

Newspapers

Japan Italy France

Source: Warc, International Ad Forecast

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 62

Warc’s Media Inflation Forecast shows that TV and internet price inflation will vary greatly by market in 2014.

China and India are expected to see continued price inflation, despite recent uncertainty over the economic outlook for both countries.

Otherwise prices are expected to remain relatively stable, though it is worth noting an ex-pected 5% increase in TV prices in the US.

Australia, France and the US are expected to show negative inflation in online display ad prices.

KEY FACTS PRICE INFLATION BY MARKET: TV VERSUS INTERNET

Emerging markets hit by media inflation

TV forecast (% change in cost per thousand for 30-second spot)

Internet forecast (% change in cost per thousand for 468x60 banner ad)

Source: Warc, Media Inflation Forecast

93%

34%

93%

Australia

Australia

1

17

-5

China

China

11

France

France

3

-1

Germany

Germany

2

1

11

India

India

18

Italy

Italy

2

5

Japan

Japan

2

2

Russia

Russia

9

Spain

Spain

5

3

UK

UK

3

3

US

US

5

-1

15

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 63

Each month, Warc’s Global Marketing Index tracks senti-ment among marketing pro-fessionals across the world. A reading above 50 on the Index indicates that conditions are improving.

The index for trading condi-tions shows that sentiment has remained positive through-out 2013. However, the index dipped noticeably in the middle of the year, before bouncing back in the final quarter.

This pattern is reflected in the index of expectations for mar-keting budgets, which declined in the middle of the year in the Americas (reflecting the ‘fiscal cliff’ crisis) and Asia-Pacific (re-flecting economic uncertainty).

The European data improved across 2013. Early in the year the index for budgets was lower in Europe than any other region. By December it was the most optimistic region.

KEY FACTS GLOBAL MARKETING SENTIMENT

Sentiment bounces back

Above 50.0 = generally improving; Below 50.0 = generally decliningSource: Warc, Global Marketing Index, December 2013

Attitudes to trading conditions (by month, 2013)

Regional attitudes to marketing budgets (by month, 2013)

93%

46%

36%

25%

Jan Feb March April May June July August OctSept Nov Dec

57.9

59.460.0

59.1 59.158.1

56.457.1

55.6

57.8

60.9

62.7

60%

58%

56%

54%

52%

50%

48%

46%

44%

Asia Pacific

The Americas

Global

Europe

Jan Feb March April May June July Aug OctSept Nov Dec

Executive summary >>

1 Strategy >>Post-digital marketing

2 Shopper >>Points ofinfluence

3 Content >>Cutting through the clutter

4 Media >>Rise of the machines

5 Multichannel >>Cross-screen effectiveness

6 Adspend >>The outlookfor 2014

Warc Trends >> Toolkit 2014

www.warc.com © Copyright Warc 2014. All rights reserved. 64

Deloitte tracks the sentiment of Chief Financial Officers at major organisations regarding general business conditions. The panel is based in the UK, but many of the companies rep-resented have an international outlook.

The CFOs’ views echo those of the Global Marketing Index, with confidence rising in the final months of 2013. The meas-ure of economic uncertainty dropped to its lowest reading in over three years in Q4.

Rising confidence is influencing corporate strategies. A growing number of organisations are fo-cusing on expansionary strate-gies, such as product launches or international expansion, with defensive moves such as cost-cutting becoming less frequent during 2013.

KEY FACTS BUSINESS CONFIDENCE AND PRIORITIES

The view from the CFO

Economic uncertainty rated as above normal, high or very high (% of CFOs)

CFO priorities: expansionary vs. defensive strategies (% of CFOs)

60%

70%

80%

90%

100%

2010Q3

2012Q3

2011Q3

2013Q3

2011Q1

2013Q1

2012Q1

2010Q4

2012Q4

2011Q4

2013Q4

2011Q2

2013Q2

2012Q2

2010Q3

2012Q3

2011Q3

2013Q3

2011Q1

2013Q1

2012Q1

2010Q4

2012Q4

2011Q4

2013Q4

2011Q2

2013Q2

2012Q2

Source: Deloitte, CFO Survey, Q4 2013

19%

22%

25%

28%

31%

34%

37%

Defensive strategies

Expansionary strategies

www.warc.com © Copyright Warc 2014. All rights reserved. 65

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Deloitte’s Marketing & Insight Team

Disclaimer: This report (the “Report”) has been prepared by Warc and Deloitte LLP (“Deloitte”) on the basis of the limita-tions set out below. The Report has been prepared solely for general information and should not be used for any other pur-pose or in any other context. No representation or warranty, express or implied, is given and no responsibility or liability is or will be accepted by or on behalf of Warc or Deloitte as to the accuracy, completeness or correctness of this Report and any such liability is expressly disclaimed. All copyright and other proprietary rights in the Report remain the property of Warc and Deloitte. This Report and its contents do not constitute financial or other professional advice, and specific advice should be sought about your specific circumstances. In particular, the Report does not constitute a recommendation or endorsement by Deloitte to invest or participate in, exit, or otherwise use any of the markets or companies referred to in it. To the fullest extent possible, both Warc and Deloitte disclaim any liability arising out of the use (or non-use) of the Report and its contents, including any action or decision taken as a result of such use (or non-use). Deloitte LLP is the UK member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms,

each of which is a legally separate and independent entity.

Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients in multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has 200,000 professionals worldwide, all committed to becoming the standard of excellence.

Deloitte LLP offers professional services to the UK and European market. With over 14,400 exceptional people in 28 offices in the UK and Switzer-land, Deloitte has the broadest and deepest range of skills of any business advisory organisation. Our Marketing & Insight team is the leading prac-tice of its kind in the UK and comprises experienced professionals from a range of backgrounds, including marketing agencies, research and ana-lytics, CRM technologists, industry marketing management and manage-ment consultants. Our capabilities span the marketing value chain, from Marketing Planning and Strategy through to Marketing Operating Models and the latest Marketing analytics techniques and technologies.

ABOUT DELOITTE KEY CONTACTS

Nick Turner Partner

Nick is a partner in Deloitte’s UK Market-ing & Insight practice. He has led global operating model transformations for some of the world’s largest brand and marketing functions, working on integrated business

processes, governance and technology enablement. In 2011 he was voted Marketing Consultant of the Year by his peers in the Management Consultancies Association. +44 7957 483543 [email protected]

Alex Thom Manager

Alex is a manager in Deloitte’s UK Market-ing & Insight practice. He has gained cross-industry experience in consulting, defining and delivering customer-related strategies, with a particular focus on

marketing. Alex leads the brand management proposition at Deloitte, and his work has included specialist support designing marketing processes, analysing marketing spend, designing marketing operating models and evaluating agency models. +44 7900 405103 [email protected]