warc trends the_innovation_casebook_(sample_version)

© Copyright Warc 2013. All rights reserved. Published: August 2013

WARC TRENDS

THE INNOVATION CASEBOOK >> Explore the world’s freshest communications ideas

SAMPLE VERSION

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Warc Trends >> The Innovation Casebook

© Copyright Warc 2013. All rights reserved.

This is a sample version of Warc’s Innovation Casebook

The full report is available to subscribers of warc.com, who can download it here

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Four ideas to take from this report

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2

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INNOVATION IS EFFECTIVE

The case studies in this report show that innovative communications can deliver significant business results for companies in a diverse range of categories. It could be argued that, like creativity, innovation works be-cause it drives word-of-mouth.

INNOVATION DOES NOT HAVE TO BE EXPENSIVE

Innovation is not the preserve of big-spending advertisers. This report contains many examples of brands delivering innovative communications on low budgets. Indeed, in some cases having a low budget has forced a brand to find an unconventional approach.

INNOVATION DOES NOT HAVE TO BE HIGH-TECH

Technological change is creating new opportunities for brands to com-municate with consumers. But this report contains plenty of examples of brands that have found innovative solutions that are not tech-based – for example, through smart use of packaging, or by rethinking a brand’s service offering.

INNOVATION REQUIRES A BALANCED APPROACH

Innovation is not a replacement for tried-and-tested methods or media. Many brands continue to invest in ‘traditional’ marketing communica-tions, while allocating a portion of their budget to testing new ideas. And when they find an idea with promise, they tend to promote it using multi-media campaigns.

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Executive summary

The Innovation Casebook showcases and analyses some of the smartest communica-

tions ideas in the world. Its starting point is the Warc Prize for Innova-tion, a global case study competition that awards a cash prize to the best examples of innovative marketing communications. This report fea-tures some of the best case studies from the competition, and looks at recurring themes and ideas that run through entries to the competition. It puts the cases in context by drawing in the latest thinking and examples around innovation from the warc.com resource.

Innovation is, of course, difficult to define. In this report we look at campaigns that have taken an unconventional approach to solving a problem – whether that involves a new approach to media, or a total rethink of a brand’s service.

The report begins by asking why innovation is important in a com-munications context. It then looks at different types of innovation, group-ing cases and examples by theme. The overall message is that a rapidly changing media and technology landscape is throwing up many opportunities for brands to think dif-

important driver of effectiveness. In this sense, innovation becomes a broader form of creativity. It can also make a small budget go a long way. This is demonstrated particularly well by the much-feted ‘Dumb Ways to Die’ campaign from Metro Trains Melbourne; this generated huge word-of-mouth on a small budget.

The ‘buzz’ side of innovation is im-portant. Data collated by Warc from Prize cases shows that innovative campaigns are making heavy use of buzz-driving channels such as

ferently. Innovation does not have to be expensive and it does not have to involve cutting-edge technology. But effective innovation tends to have a natural ‘fit’ with a brand’s position-ing, and is linked to a broader busi-ness strategy.

Innovation worksThe Prize shows that innovative communications can be highly ef-fective. It can be argued (Chapter 1) that, like creativity, innovation drives ‘buzz’ and ‘brand fame’, which is an

Metro Trains Melbourne made the most of its small budget to generate word-of-mouth





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77%of cases in the

2013 Prize used social media, more than the

62% which used television

tion within media channels – both new ways to use media, and new combinations of media. This is a fertile area, given the rapid change in the media industry, and a case study from Twix shows how new op-portunities are emerging – the brand created an ad platform on the pause button of an online video player.

A parallel trend is for brands to think outside a ‘paid media’ frame-work (Chapter 3). Several case stud-ies highlight how important ‘owned’ assets are becoming, and in particu-lar packaging. And an example from the Colombian Ministry of Defence shows that necessity can breed inno-vation: in the absence of any media channels that could reach guerrillas in the jungle, the authorities used trees and rivers to deliver messages.

The impact of technologyMany of the innovations in this report rely on brands and their agencies recognising the potential of new technology development to make their communications more inter-esting. Chapter 4 looks at different examples of brands finding market-ing applications for new tech. Many brands are finding ways to combine the features of a smartphone to

Executive summary (contd.)social media and PR. Indeed, more campaigns in the 2013 Prize used social media than used television. But relatively few cases state buzz as a specific objective; instead, it could be argued that these cases are using ‘word-of-mouth’ as a means to deliver broader business results.

The importance of innovative think-ing has been recognised by brands such as General Mills and Coca-Cola, which have set aside a portion of their marketing budgets to invest in untested ideas. PepsiCo and Kraft

are looking for similar results from tech ‘incubation’ projects.

What is clear from these examples, however, is that these brands do not see innovation as a replacement for tried-and-tested methods. Their experiments form a small but signifi-cant part of their overall communica-tions plan that allows them to absorb failures easily and scale successes.

New ways to reach consumersThe report looks at innovation by theme. Chapter 2 looks at innova-

Coca-Cola uses a 70/20/10 investment principle to encourage innovation





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product development. Some brands are acting as curators of others’ crea-tivity; others are seeking to involve consumers in stunts or shared experi-ences. The latter can be used for quite focused promotions: IKEA used a ‘Human Coupons’ stunt to drive footfall to a store opening.

Think globalThe report demonstrates how com-mon the desire for innovation is: it contains examples of new think-ing from a diverse set of markets.

Chapter 8 concludes by looking at some of the themes

coming out of emerg-ing markets. There is great scope to innovate in areas such as co-creation and service provision, as a case study from Indian ketchup brand Kissanpur shows. But there may also be much to learn from a tech perspective: a Chinese case from Dettol shows a power-ful understanding of word-of-mouth, both online and offline.

Executive summary (contd.)good effect – a McDonald’s example from China used GPS and motion sensors to create in-store ‘athletics’. Other brands are responding to tech-driven trends such as the ‘quantified self’ and the ‘internet of things’.

Rethinking communicationsHowever, innovation does not have to rely on tech. Sometimes a back-to-basics approach can pay dividends. Chapter 5 looks at examples of brands rethinking the service they provide to customers, and putting new forms of utility at the heart of their communications. Powerful examples come from Art Series Hotels, whose ‘Overstay Check-out’ idea won the 2013 Prize, and Australian train company V/Line, which turned a communications insight into a service proposition.

Communications built around content also feature prominently in the 2013 Prize. Indeed, innova-tion cases are twice as likely to use branded content as the aver-age effectiveness case added to Warc in the first half of the year. But a commitment to content is no small task. Chapter 6 includes a case study from Oreo, which de-veloped a piece of content a day

for 100 days. But the brand gained greater results from the content campaign that it had from the more expensive traditional campaign that had run previously.

Chapter 7 looks at another interesting theme within the cases – the power of participation-driven strategies. The report argues that co-creation has diversified in recent years beyond crowdsourced ads or

Anheuser-Busch created a mobile app to help users locate the near-est bar selling Stella Artois





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Viewpoint Making innovation happenInnovation is not for every client. A marketing director of a prominent consumer goods company (in a consistently growing category) once told me: “If you’re going to come in here and recommend we do things differently – well we’re not interest-ed.” At the time they were profitable and successful, and happy to steer a steady ship. But this seems to be the exception – most clients are after competitive advantage over their rivals, and see innovation as a key competency to develop.

However, chasing innovative solu-tions is not without its risks. Creating a culture that chases and embraces new is not without its headaches. Systems and processes often need to be ignored for true revolutionary thinking. When we try to innovate within a structure that has done the same thing for some time, the results can be left wanting. It sometimes pays to embrace the people who are doing things differently, not playing by the rules. Encourage their idiosyn-cratic behaviours and something special may result.

That means not relying on the creatives. They have a job to, as do the planners and account managers.

Instead, share briefs and foster a cul-ture of genuinely allowing innovation to come from anywhere, especially the cracks in between the various departments.

Innovation is not something that comes from every brief, and nor should it. And sometimes even when a client wants an innovative solution, the brief can’t always be delivered on – maybe the brief was too hard, there wasn’t enough time, or too much of a leap was required. However, we find that innovation is intoxicating. The most innovative clients tend to innovate more and more. The less innovative learn to maintain the sta-tus quo – until forced to look for an innovative/breakthrough solution to a business problem that has grown progressively worse through inertia.

As a final word, I’m guessing that innovation is highly correlated with both fun and profitability, but I’ll leave that to someone much smarter than me to prove.Read the full article

Adam Ferrier is Founder/Global Head of Behavioural Science, Naked Com-munications, and winner of the 2013 Warc Prize for Innovation

Most clients are after competitive advantage over their ri-vals, and see innovation as a core competency to develop

Adam FerrierNaked Communications





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Chapter 4McDonald’s, ‘Coin Hunters’, DenmarkMcDonald’s, ‘Real-time Olympics’, China

Chapter 5Art Series Hotels, ‘The Overstay Checkout’, AustraliaV/Line, ‘Guilt Trips’, Australia

Chapter 6Oreo, ‘Daily Twist’, USAThe Peres Centre for Peace, ‘Blood Relations’, multiple markets

Chapter 1Metro Trains Melbourne, ‘Dumb Ways To Die’, Australia

Chapter 2Twix, ‘Pause’, Australiaecostore, ‘Little Treasures’, New Zealand

Chapter 3Programme Humanitarian Attention to the Demobilised, ‘Rivers of Light’, Colombia Rom, ‘American Rom’, Romania

Brands featured in this reportFEATURED CASE STUDIES

Chapter 7IKEA, ‘Human Coupons’, CanadaPromote Iceland, ‘Inspired by Iceland’, Global

Chapter 8Kissan Tomato Ketchup, ‘Kissanpur’, IndiaDettol, ‘Message Interrupts, Utility Delights’, China

All case studies are from the Warc Prize

for Innovation 2012 and 2013.

Art Series Hotels (top-left); Kissan Tomato Ketchup and IKEA (bottom-left); Oreo (centre); V/Line (right)









SAMPLE CHAPTER

THINKING BEYONDMEDIA>> How brands are building strategies around ‘owned’ assets





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Don’t immediately focus all creativity on the commu-nication and activation to sell an item. First focus on the item itselfExtract from ‘Heineken: STR Bottle – Light Up The Night’ case study

At a glance Non-media opportunitiesKEY INSIGHTS

1 Many of the best innovation case studies do not start with a media framework in mind. There is a growing appreciation of the power of some of the brand’s ‘owned’ assets, and in particular the potential to build communications ideas around packaging innovation.

2 Coca-Cola in particular has adopted innovations in packaging and used them at the heart of communications, both in its I Lohas water brand in Japan, and its global ‘Share a Coke’ initiative. These ideas are not replacements for paid media, but use advertising to promote the innovation and give it context.

3 Relatively simple (and tech-lite) ideas can lead to powerful results, as long as they feed into a broader brand ‘story’. Monteith’s Crushed Cider in New Zealand managed to create a successful campaign by leaving twigs in its boxes. A very different example comes from Colombia, where the government decorated trees with Christmas lights to persuade guerrillas to lay down their arms.





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‘Owned’ assets take the leadIt is striking how many innovative campaigns involve thinking outside any media framework.

Several cases in the Warc Prize for Innovation find new ways to talk to people beyond ‘paid media’.

In particular, many brands have realised the power of their own as-sets, such as packaging, as a com-munications tool, and have looked for ways to innovate in that space. A great example is Coca-Cola’s ‘crushable’ bottles, which it has used to give some of its water brands an environmentally friendly positioning. It pioneered this approach with its I Lohas brand in Japan. Ciel, the Mexi-can bottled water owned by Coca-Cola, used the same technology to roll out bottles featuring 33% less plastic, and which must be twisted and collapsed before recycling.

Coca-Cola’s packaging innova-tions can also

be seen in the ‘Share a Coke’ case study. First launched in Australia, this initiative involved bottles printed with people’s names on it, and built into a broader social media-driven campaign. The idea has since been rolled out in other major markets.

Elsewhere, beer brands have been highly active in this space. To maximise the returns from its sponsorship of the Winnipeg Jets hockey team, Budweiser made a special-edition ‘fan brew’. Heineken has made an aluminium bottle using ultra-violet technology to reveal a different design under black lights, while Steinlager took the opposite route, reintroducing packaging from 1987 to tap nostalgia related to New Zealand’s rugby team winning the World Cup.

Pack innovation does not always have to be technology-driven.

Monteith’s Crushed Cider started a conversation about its fresh ingredients by putting twigs in 12-pack boxes, and following this up with a fake “apology” for doing so.

IKEA, the furniture chain, broadened the

definition of media still fur-

ther on ‘Moving Day’ in Montre-al – when many people traditionally move home – by distributing branded cardboard box-es embossed with helpful tips, as well as discount vouchers, across the city. This generated 3.8 million on-street impressions and helped boost in-store sales by 25%.

Similar thinking came from-Volkswagen in India. The au-tomaker, opted for a deceptively simple approach, encouraging shoppers to take a test-drive by attaching Post-it notes containing booking details to anything from cinema screens to buses.

Many of these examples still use media activity to promote the in-novation. But it is clear that there are plenty of opportunities for brands to use their own assets as a key communications tool.

Monteith’s (left) drew atten-tion to its fresh ingredients with an ‘apology’; Coca-Cola created eco-friendly water bottles (right)





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Case study Colombian MoDCampaignRivers of Light

AdvertiserProgramme of Humanitarian Attention to the Demobilised / Colombian Min-istry of Defence

AgencyLowe-SSP3

MarketColombia

SourceWarc Prize for Innovation, 2013

Colombians sent messages and gifts via the rivers to FARC guerrillas

The need to reach rebels with no access to mainstream media forced the government to deliver an emotional message in an unconven-tional way.

CHALLENGE

For more than six decades, FARC – a Marxist guerrilla group – has com-mitted regular acts of violence in Colombia. The organisation controls around 30% of national territory and has approximately 8,000 members, most of whom reside in the jungle, well beyond the reach of conven-tional media.

Original thinking is therefore cen-tral to any efforts to persuade these

insurgents to re-join society. An initial effort, ‘Operation Christmas’, played on the understanding that Christmas was the time most rebels considered leaving FARC, and sent soldiers into the jungle to decorate trees in a traditional festive style. It led 331 guerrillas to abandon their cause.

The impact of this initiative, how-ever, saw FARC retreat deeper into the jungle, ban radios and announce even harsher punishments for desert-ers. That made the following year’s campaign even tougher.

SOLUTION

As rivers are the main means of transport and communication for FARC, it was decided to use this route to reach its members. In the first instance, the Colombian military requested the friends and family of revolutionaries to send in personal messages and gifts, with 6,823 ulti-mately received.

The notes and presents were then individually wrapped in waterproof baubles containing LED lights, and dropped in strategic points of the river system by the army and navy.

Accompanying the personalised content contained in each ball was a note reading, “Don’t let this Christ-

mas slip away. Colombia and your family are waiting. Demobilise. At Christmas, everything is possible.” A 30-second TV spot was also devel-oped to publicise this effort.

RESULTS

In all, 192 guerrillas – who had served an average of 14 years with FARC – demobilised because of this campaign. A fifth of this group were under 18 years old, a 62% jump year on year.

Many weapons were given up by these former combatants, and important information was provided to the Colombian government. The overall net benefit to the economy was estimated at $3.8 million.Read the full case study





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Case study RomCampaignAmerican Rom

AdvertiserKandia Dulce

AgencyBV McCann Erickson

MarketRomania


Rom chocolate bar replaced its national identity with an American design to provoke Romanian patriotism

A tongue-in-cheek pack redesign was at the heart of multimedia cam-paign to revive a flagging brand.

CHALLENGE

Rom, a chocolate bar launched in Romania in 1964, was a national in-stitution, to the extent that it featured the national flag on its packaging and posted awareness levels of 95%. It was widely associated with the childhood of Romanians.

However, a modest 14.5% of shop-pers described the brand as their favourite, and its patriotic positioning was of limited appeal to younger Ro-manians, around 80% of which had considered leaving their homeland in search of new opportunities.

As such, this former market leader had seen its share plummet, while foreign competitors such as Snickers

with Twitter, blogs and a consumer helpline serving as back-up.

After seven days, it was revealed that the takeover was a prank. Shoppers who had interacted with the campaign were thanked directly. Some even appeared on TV shows to talk about their feelings.

RESULTS

The campaign reached 15 million people, or two-thirds of the Roma-nian population, and Rom registered 189,706 page views and 75,000 visi-tors on its corporate website in the first six days alone.

The proportion of Romanians who agreed Rom was their favourite brand rose to 25.9%; 36.5% of the target audience described Rom as a ‘brand for me’, up from 16.2%.Read the full case study

were growing rapidly. The challenge was to regain share.

SOLUTION

Having assessed online discus-sions among 20 to 35-year-olds, Rom discovered their patriotism was reactive, emerging in force only when Romania was compared with foreign countries, especially larger ones.

Rather than appealing to pride in their country directly, Rom decided to replace the Romanian flag on its packaging with the American flag, and to runs ads stating it had been taken over by a US corporation.

During the campaign’s ‘teaser’ stage, the redesigned packaging – complete with English text mocking Romanian values – was rolled out. Next, an online forum and Facebook page became arenas for debate,





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Executive Summary >>

Chapter 1 >>Why innovation matters

Chapter 2 >>Making new connections

Chapter 3 >>Thinking beyond media

Chapter 4 >>Tech-driven innovation

Chapter 5 >>Service innovation

Chapter 6 >>Innovating through content

Chapter 7 >>Participation-driven innovation

Chapter 8 >>Learning from emerging markets

Source: comScore, via Warc News

7%Growth in time spent online in the Asia-Pacific region over the past year, faster

than Europe (5%) and North America (1%)

Brands look for ‘reverse innovation’Brands are increasingly seeing emerging markets as cradles of innovative thinking.

Brands have traditionally taken successful products, tactics and campaigns from mature markets and localised them in emerging nations. But the flow of ideas is starting to move more forcefully in the opposite direction, a trend dubbed ‘reverse in-novation’ or ‘trickle-up innovation’.

Markets such as India or China place very different demands on marketers than more established ter-ritories, and global brands often find they have to rethink their products to meet local tastes, local pricepoints, and local social, economic or retail structures.

The idea of ‘reverse innovation’ isn’t wholly new. It is, however, growing in scale. When L’Oréal, the beauty group, set up marketing and R&D hubs in China and India, its aim was to deliver local lines that could, in certain cases, “be rolled out in the rest of the world using the principle of reverse innovation,” according to Jean-Paul Agon, the firm’s chief executive. Total Solutions 5, originat-ing from Brazil, is just one example of this to date.

Another area is the use of social media. The importance of social media in China, where it has

become a key platform for entertainment, discussion and discovery, is driving innovation in that market. Brands should look at

Sina Weibo, a micro-blog that started

as a Twitter clone then evolved rapidly to meet local needs. The latest up-and-coming Chi-nese platform is WeChat, a voice- and text-message service

which is already growing fast out-side China.

While some ide-as are specific to the markets they come from, there are undoubtedly lessons from these territories that marketers elsewhere can draw.

Similar developments can be seen in communications. In Mexico, Gato-rade, PepsiCo’s sports drink, focused messaging on sports nutrition and the fact people tend to train in groups. This ap-proach was later rolled out in Brazil and used to opti-mise Gatorade’s strategy in other regions.

Mobile marketing is one area where reverse innovation can be felt. Babs Rangaiah, Unile-ver’s vice-presi-dent, global media innovation and ventures, has sug-gested the FMCG group will allocate most of its mobile adspend to emerging markets, where these gadgets often con-stitute the primary means of accessing the internet.

Gatorade changed its messaging to focus on sports nutrition

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KEY FACTS

Buzz can drive broad objectives OBJECTIVES VS. MEDIA USAGE

Source: Warc Prize for Innovation, 2013

Warc tracks case studies by both the stated campaign objectives and the media channels they use. It is, there-fore, possible to analyse what clients are trying to achieve and the methods they are using to achieve it.

Overall, just 24% of cases from the Warc Prize for Innovation 2013 stated that driving ‘buzz’ or word-of-mouth was an objec-tive of their campaign.

However, many more cam-paigns from the Prize are em-ploying buzz-driving channels: 77% use social media; 51% use PR; and 36% use ‘viral’ content.

It could be argued, therefore, that many innovative market-ers view ‘buzz’ as a means of driving bigger business results, rather than an end in itself.

Top five objectives of Warc Prize case studies

Percentage of Warc Prize case studies that use buzz-focused channels

77% 51% 36%

Social media Public relationsWord of mouth/

viral

Build brand equity

Increase awareness

Increase sales/volume

Increase market share

Generate buzz/WOM

56%48%

26%

48%

24%

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Case study Metro Trains MelbourneCampaignDumb Ways to Die

AdvertiserMetro Trains Melbourne

AgencyMcCann Australia

MarketAustralia


Metro’s campaign featured characters dying in “dumb” yet entertaining ways

This much-awarded railway safety campaign shows the power of in-novative thinking to drive word-of-mouth, and to make a small budget go a long way.

CHALLENGE

Most accidents that occur in and around Melbourne’s rail network are avoidable – for example, many take place when people are crossing tracks. Young adults are particularly likely to come to harm in this way.

But Metro Trains Melbourne faced a challenge in reaching the city’s 900,000 or so 15-29 year olds, not least because they were already bombarded with equivalent mes-sages covering everything from their driving habits to stopping smoking.

Alongside this hurdle, a budget of just A$300,000 greatly limited the paid media options available.

SOLUTION

The ‘Dumb Ways to Die’ campaign drew on the insight that most acci-dents involving youth were caused by idiotic or impatient behaviour.

As these same consumers were nearly all digital natives, creating material they would choose to watch and share became the goal. This

bers of Tumblr and Reddit.

RESULTS

Within two months, ‘Dumb Ways to Die’ secured 40 million views on YouTube and three million shares. It also entered the iTunes charts in 28 countries, and received A$60 million of earned media coverage.

A third of people in Melbourne recalled details about the campaign, rising to 46% for 18-29 year olds. Another 42% of the people aware of this message felt more positively about Metro, and 39% consciously thought about how they behaved around trains.Read the full case study

content took the form of a music video depicting 21 cartoon charac-ters dying in ‘dumb’ ways, from set-ting their hair on fire to falling off a train platform. When viewers finished watching, they were asked to commit to being safe around trains.

YouTube and Tumblr were the lead media, while Facebook, Twitter, Pinterest and Instagram were used to stimulate viral behaviour. The iTunes and SoundCloud music services acted as a third tenet of the commu-nications strategy.

To fuel conversation further, an official karaoke version of the ‘Dumb Ways to Die’ song was released, as were animated GIFs aimed at mem-

This report features eight chapters that examine innovation in communication. Each chapter includes case studies drawn from the Warc Prize for Innovation, and puts the thinking behind the campaigns in context.

Highlights include:

A focus on why innovative thinking can drive effective marketing;

Case studies from advertisers including McDonald’s, Oreo and IKEA;

Analysis by theme, including tech-driven in-novation, and the rise of branded services;

Insight into the use of media channels, and the growth of social and content strategies.

The full report is available to download by subscribers of www.warc.com.

Not a subscriber? Take a free trial.

About Warc’s Innovation Casebook

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