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									Planning effective communications
in times of rapid change
Sheila Byfield
MindShare Worldwide
 Our agenda for today
Factors that are shaping the
future of communications:

     Economy
     Demography
     Social change
     Media and technology

The implications for planning
A new communications
model?
Measuring it all
A few final thoughts
In other words:

what is happening in people’s
lives and what are the effects
on planning?
Factors that are shaping communications


              ECONOMIC



                 Shapin
  SOCIAL           g        DEMOGRAPHIC
                 Factors




               MEDIA &
             TECHNOLOGY
Increase in affluence over the coming
century
                               Euros 539K
  18                  Index
  16
  14
  12
  10
   8
   6
   4
   2
   0
    00
    07
    14
    21
    28
    35
    42
    49
    56
    63
    70
    77
    84
    91
    98
 20
 20
 20
 20
 20
 20
 20
 20
 20
 20
 20
 20
 20
 20
 20
                                Source: nVision
Which resource is most valuable in your
life?

                                                  37
 Time
                                          32
 Energy
 Money                 14


                      12
 Space
 Information      6




                              Source: Planning for Consumer Change
                              The Henley Centre
‘…consumers are no longer
satisfied with the
‘manufactured’ status
enhancements that branding
had produced. Instead, they
seek experiences…where
status is not so easily created’

Peter Martin, Chief Business
Columnist, Financial Times
More spent on experiences in Europe
140
         Experience expenditure
120
         Material expenditure
100

 80

 60

 40

 20

  0
      1980           1990         2002            2007

                                         Source: nVision Europe
Status items are more important in developing
countries
                      70                                                70


                      60                                                60

                              Germany                                         China
                      50                                                50
                              Russia                                          Hong Kong
                      40      Hong Kong                                 40    Vietnam

                              China                                           Malaysia
                      30                                                30
                              Global average                                  Global
                                                                              average
                      20                                                20


                      10                                                10


                       0                                                0
  You can judge a person by                      Designer clothes
       their clothes                           project a better Image

                                                                        Source : 3D
                    Developing countries are more open to
                    global brands
95%

                                             Japan
                             Thailand                            Philippines
 Likely to happen




                                                                            China
                          France
                                                                         Taiwan
                                     Germany
                                                            Russia
                             Spain           UK                   Singapore
                                                     Malaysia
                                        US                         Hong Kong


65%
                    35%       More global brands is a good thing                    95%
But are less likely to be brand loyal
100                                       ‘I tend to stick to the
  %
         84
                 80                            same brands’
 75                   72   72   69   67    64   64
                                                     59   57    56   55
 50                                                                          47
                                                                                  42


 25


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                                                               Source : 3D
Main drivers of brand loyalty

From analysis of over 5,000 brands worldwide

FAME : know about the brand + some
experience

AFFINITY : the strength of brand relationship
CHALLENGE : the brand is making waves,
setting trends or challenges thinking

PRICE : by far the least important if the other
factors are strong

                                    Source: MindShare
Factors that are shaping communications


               ECONOMIC



                 Shapin
  SOCIAL           g        DEMOGRAPHY
                 Factors




               MEDIA &
             TECHNOLOGY
Demographics are less reliable
Children are getting older   Older generations are
- younger                    younger for longer
Demographics are only the tip of
the iceberg

                 Family       Work

       Society                              Experiences



Politics                                       Life events


Technology                                 Economic status

             Brands                Communications
                      Life stage
Factors that are shaping communications


               ECONOMIC



                 Shapin
    SOCIAL         g
                 Factors




               MEDIA &
             TECHNOLOGY
      Life used to be straightforward

Family size
 10


  8


  6


  4
                                 Own
                                family
          Live with
  2       parents
                                               Children leave
                                                                   Partner dies
  0
              10      20   30        40   50         60           70             80



                                                      Source: HenleyWorld 2003
      Now it is more complicated (for some)

Family size                                                 Second marriage
 10                                                         extended family
                                                  Have
                    Student                      children
  8
                         Start Live with Get
              parents    work partner married
  6
                              Buy own Separate       Divorce
                               home                                                     with third
  4                                                                   leave home        partner
                                         Own                                      Partner
                                        family                                     dies
          Live with
  2       parents

                                                                  home             Partner dies
  0                                                                                            Age
      0        10       20         30        40             50       60           70        80



                                                                      Source: HenleyWorld 2003
One person – many lives




                          Source: HenleyWorld 2003
Complex lives

Time pressure: so much to do, not enough time time,
more time spent out of the home, more to do in the
home

Explosion of choice: appreciated by most but people
welcome ways to navigate through the jungle

Instant gratification: what you want, wherever and
whenever you want it

Individualism (anyone can be famous / small
indulgences / pampering / desire for nostalgia)
Factors that are shaping communications


               ECONOMIC



                 Shapin
                   g
                 Factors
What does the future hold?

 Use of television will decline dramatically by the
 year 2000

 The television will disappear in less than ten
 years

 The Internet will be the leading mass medium

                  Gilder 1994; Negroponte 1995
Soon you will be able
to watch any movie
and substitute your
own face for one of
the actors

Bill Gates
1996
The future will be
about screens

            Bill Gates
 More people have technology than don’t

100
                   Haves                   Transients                     Trailers
 90
 80                                                             75
 70   64
 60                             54
 50                                                                                  44
                                                40
 40                37 36
                                     33              33
                                                                                               30
 30                        27                             27                              27
                                                                     20
 20        17 19
                                          13
 10                                                                       5
  0
       North        Latin       Western         Central        Developed Developing
      America      America      Europe          Europe           Asia       Asia

                                                                     Source: Roper Reports
Moving to an ‘always on’ mode
More time
on-line

                             Always on

                              Time blocks



                              Time spots


   0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Less time
on-line
                                                     Source: Iris/the future foundation
More control over the media…
Time and attention are scarce resources…


       1950s                2006
     Activities while the television in on (UK adults
     aged 15 to 34)
      62%
                          56%             54%

                                                          44%              43%
                                                                                           39%




Talking face-to-       Listening to   'Normal' phone   Mobile phone   Eating/drinking    Mobile for
      face                 radio                          calls           at home       SMS/text/pic
                                                                                         message
 TV Primary Activity
     Some people see a lot of advertising

    TV Commercials seen each week
 1200
          1045
              1000

 1000                948

                           841

  800
                                 691 686
                                           655
                                                 600
  600
                                                       522 504
                                                                  463 453 450 447
                                                                                    424
                                                                                          403
  400                                                                                           363
                                                                                                      293 279
                                                                                                                250 244
                                                                                                                        224 211
                                                                                                                                200 191
  200                                                                                                                                   176 170
                                                                                                                                                  136



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                                                                                                          N
                      Above 900                        750 - 899                    400 - 749                   200 - 399           < 200



Source: MindShare 2003
 Clutter has an impact on awareness


                                               Direct correlation
                 150                   between number of ads. seen and
                                       the loss in ad. impact
        Impact




                 100




                 50
                  100            500                        1000
                         Number of TV ads viewed per week
Source : MillwardBrown
         Advertising has less appeal these days

      Turned off by
        the ads %
         agreeing

                        33                                                                                    31.4
                        31                                                                             30.2
                        29
                                                                       27.0 26.6      27.0 27.2
                        27                                                       26.2
                        25
                                                                23.2
                        23
                        21
                        19
                        17
                        15
                             1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

                                          TV Ads are annoying   I enjoy TV ads as much as programmes


Source: TGI (Oct-Sep)
Media technologies = opportunities to avoid
advertising
           Predicted growth in PVRs over the coming years
                   UK       Germany    France     US
  2003             2%       1%         1%         3%

  2004             4%       3%         2%         6%

  2005             7%       6%         6%         17%

  2006             14%      13%        11%        27%

  2007             28%      25%        20%        34%




 source: Jupiter Research
How do we define media today?
What are the implications
of all of this for planning?
So what?

As behaviour continues to fragment further with more
and more ways to spend and save time, attention
becomes an increasingly scarce and valuable resource
for advertisers

Increasing demand for personalised content – what
you want, whenever and wherever you want it

More and more ways to easily avoid advertising

Scepticism about advertising and marketing techniques
Implications of all of this

Increasing time pressure is making people far more
selective over what they use – especially regarding
media choices
Greater choice is creating a demand for products and
services that can help navigate
People are increasingly looking for experiences to
enrich their lives : brands and the media can provide
these
Demand for personally designed content and the
increasing ease at which people can avoid advertising
are probably the greatest communications challenges
A new communications
model?
Could lead to a potential (though gradual)
change in the communications model
                     High Risk
                                        Channel Ownership

                                 Advertiser funded
                                 programming
                          Sponsorship
                                               Potential ROI
                  Product
                  Placement
       Content-rich Ads

Advertising
And a need to talk differently
How does Engagement work?


                    Action?

    INVOLVEMENT     Open, Beneficial, Enhance


      AFFINITY      Like, Accept, Believe


                    Interest, Consider
     RELEVANCE

    NOTICEABILITY   Note, Pay attention
But engagement is complex …
       Substance       Comfortable       Impressiveness           Worthiness                Novelty   Inherent value
                                               Modernity       Invited
                   Presentation             Status       Trust      Entertainment                 Stimulation
Associated
value
                            Quality      Friendly          Reputation      Enjoyable                               My World
Fit to Location                                                                                                    Time Given
Context                Appropr                                                                  Relate to          Contact &
                       iateness                            Affinity                                                Manipulation




                                                                              Involvement
Proximity

                                       Relevance
                                                                                                                   Enter Dialogue
                       Mode &                                                                  Interaction
Need state                                            ENGAGEMENT
                       Mission                                                                                     Talkability

Purchase cycle                                                                                                     Mood & Mindset
                       Interest                          Noticability                          Receptivity
                                                                                                                   Openness
Brand Affinity
                                                          Stand Out      Accessibility
                                 Disruptiveness
                                                           Impact                                                  Relaxed
Environment
                                       +/-

                   Originality                      Dominance         Size/Scale              Ease of viewing
                                                       Low Clutter
      Break routines      Unexpected               Draws senses    Boldness                 Time spent       Line of sight
Variables have different levels of
importance for different channels
                       Print –national, some     Outdoor, especially larger sizes,
          Radio        regional/local, magazines   spectaculars and transport                                 PR
                Major                                                         On-line
Ambient e.g. sponsorships                Word of mouth       Cinema           websites
gyms, phone                                                                                                  Magazines,
boxes                                                                                                        Weekend
                      Quality Friendly Reputation                       Enjoyability                         newspapers
Promotions,                                                                                                  and
coupons,           Appropr                                                                                   supplements
offers
                                                                                                Relate to
                   iateness                                 Affinity
                                                                                                             Interactive




                                                                            Involvement
                                     Relevance
In or near a                                                                                                 channels, on-
point of sale       Mode &                                                                                   line, TV,
                                                     ENGAGEMENT                                Interaction   Radio, Print
                    Mission
Word of
Mouth                                                                                                        Commuter
                                                       Noticability                                          contacts, outdoor
                   Interest                                                                    Receptivity   transport, print
Newspapers and
Magazines
                                                        Stand Out       Accessibility                         Word of
                               Disruptiveness
Outdoor, incl. 6                                         Impact                                               Mouth
                                     +/-
sheets,                                                                                                             Regional/
directionals             Spectaculars/48 sheet                                                                      local
                                                                  Cinema                  TV     Word Of Mouth      newspaper
           One-offs                Sponsored Events
           /specials/unusual
           sites                                 Sampling         Out-of Home                  Packaging
So how can we measure it all?
Why this is a tricky issue

Think about your own buying decisions:

Sometimes you spend a lot of time deciding what
to buy (e.g. a car, or high-price technology),
sometimes you spend very little (e.g. a washing
powder, or a coffee)
Your levels of consideration, involvement and risk
will all play a part in how you respond to brand
messages
Why this is a tricky issue

Now think about the communications you
see or hear …

Can you explain WHICH channels
influence your brand choices?

Can you even remember what you have
seen or heard? This morning? Yesterday?
Last week?
Why this is a tricky issue


You will quickly recognise that different
channels play different roles at different times
depending on where you are, how you feel
and the brand decision you are making

Both the media and your mind can be active
or passive at different times and in different
situations

We need to understand HOW people use
channels as well as HOW MANY use them
Connections – a new approach


A proprietary study for each brand because
each buying decision is different

Developed in a partnership with Millward Brown

Based on the hypothesis that purchase
decisions are different for each category and
that affects the role and the impact of each
channel
Purchase journeys are different by category

   Functional                   Emotional
    Trigger                      Trigger

                                                      Channels will play
                  Intention
                                                      different roles and
                                                      be either actively
                                                      or passively
      Explore                    Locate               consumed
                                                      depending on the
                                                      stage in the purchase
                                Evaluate    Convert
                                                      journey

    If not satisfied with own
      rationale – go back to
          explore phase
Connections - a new approach

Covers all communications : established and
new media, advertising and non-advertising
channels e.g. WOM, retail, experience etc

Qualitative research (depth discussions,
accompanied shopping trips, spy glasses,
cameras)

Plus quantitative research to validate results

Identifies how channels work at building brand
consideration / brand equity (DEMAND) and at
closing the sale (ACTIVATION)
Understanding the roles of channels at each
stage of the purchase journey
Consumer
    ―Memories              Making the sale before the
    ―Associations          sale…
    ―Feelings
Brand                             Pre-existing
    —Experience
                                    demand
    —Marcom
    —Publicity
    —WOM
Competitive         Consumer                     Closing the sale…
context                 —Shopping habits
                        —Price sensitivity
                    Brand
                        ―Availability
                        ―Visibility
                                                      Activation



                                                               $
                        ―Communication
                        ―Promotion
                        ―Price
                    Competitive
                    context
                                                                   Purchase
MindSet used to measure real-time exposures

A PDA that people keep for between
2 and 7 days. They complete a
questionnaire each hour which asks:

- Where are you?
- How do you feel?
- What can you see / hear?
- How often do you do this?
- Normally to what extent would you
have noticed?
- Personal interview for additional
brand / channel insights
- Can cover around 70 different
channels
    Around 10,000 channel events are
    generated from a sample of 200 over 2
    days
 Established channels




             Ambient




          One to one
                                   5,395 are for established media

               Retail




          Technology




             Outdoor



                        0   1000      2000    3000     4000    5000   6000


Source: MindSet
    2,635 watching TV, 1,520 listening to radio +

                             Watching TV
                                       Radio
                              a till receipt
                             a taxi poster
                 an ad inside bus/train
               leaflets at the checkout
                an end-of-aisle display
                       a price promotion
          a 3-for-the-price-of-2 offer
              a buy-1-get-1-free offer
                           a small poster
                        shelf advertising
                                                     Over 10,000 events in total
                        a bus side poster
                            a wall poster
                    a bus shelter poster
                      a TV/video screen
 Reading a newpaper/magazine insert
       Reading a brochure/catalogue
          Playing a PC /console game
                    a beer mat/coaster
             Reading some direct mail
                             Doing e-mail
    Reading a newspaper supplement
                Looking at the internet
                  a shop window poster
                           a large poster
                 Watching a video/DVD

                                               0   500   1000   1500   2000   2500   3000
Source: MindSet
    Time and mood

 0600 - 0859




 0900 - 1259




 1300 - 1459




 1500 - 1759




 1800 - 1959




 2000 - 2259




 2300 - 0559



           0%     10%      20%      30%        40%       50%      60%        70%     80%      90%       100%

                Very Relaxed   Quite Relaxed   Alright   A bit rushed/busy   Very Time pressured/busy

Source: 3D / MindSet Ireland
   Location and mood


                 In a Café




At a doctor/dental surgery




Travel by motor/push bike




           Travel by train




                         0%     10%     20%      30%     40%        50%   60%     70%     80%   90%   100%

      Very Relaxed    Quite Relaxed   Alright   A bit rushed/busy    Very Time pressured/busy
More relaxed / more likely to notice advertising


 100%

  80%

  60%

  40%

  20%

  0%
        Very relaxed   Quite relaxed   Alright   Somewhat        Very
                                                 pressured    pressured

   Would not have noticed it            Possibly would have noticed it
   Definitely would have noticed it
The advantages of MindSet
- Provides REAL-TIME
exposures to around 70
different channels
including retail, outdoor,
direct marketing etc
- Does not rely on
memory
- Covers channels that
are not measured and /
or are not well
understood
- All channels are
measured from the same
platform
The Connections framework acknowledges that there
are two main stages on the journey to purchase –
their importance differs by brand, and also the
potential channels of influence



           Existing
           Demand
                            Activation
                                             $
                                             Sales


    Long-term           Short-term

    “Making the sale    “Closing the sale”
     before the sale”
Identifies what has influenced Demand (brand
consideration before making a purchase)
                                                                   Diff from
Personal experience                                                  ROC
       Brand name                                                       -12
        Advertising                                                      -1
In-store experience                                                       6
               Price                                                     -7
       Sponsorship                                                        7
         Packaging                                                        8
      Special offers
                                                                         -4
           Publicity
                                                                          1
    In-store display
                                                                         -5
              WOM
                                                                         -2
              Direct
                                                                         -4
                                                                          0
   Personal contact
                                                                          3
           Website
                                                                         -1
                       0   10   20   30   40   50   60   70   80   90
 And what is influencing final purchase (retail
 example)
                           Remembered                         Impact on feelings
                               %                                     %

 Prominently displayed               18       1               9                    9



  Noticeable packaging              13    0           7                 7



        Multi-buy offer                           5               4        4
                                    12                                                      Change better
                                                                                            Confirm good
                                          0       4       2                                 No influence
      Seeing a free gift        6                                                           Confirm bad
                                                                                            Change worse
                                              2       2   1
        Price reduction      5

                                          0 1 0
Special in-store display    2

                                              1 1 1
        Word of mouth       2
                                          0                           10               20
     Measures both channel Content and Context
                                           Open-minded, looking for                     WHERE & WHAT they are
                                                                                             interacting with…
                                    energy/motivation, focused multitasking.
                                     Use channels to set mood (emotional).

                                               Radio (music or news),
                                                TV (MTV, Channel 4,
                                                Big Brother, GMTV)


                                                     waking

      Often                                                                       Internet (news,    Personal but still
  simultaneous    TV (sitcom, film,                                                                  functional focus.
                  drama), Internet                                                chores, travel,
                                    late eve


 channel usage,




                                                                          lunch
                                                                                  shopping),          Brief diversion,
  entertainment   (email, hobby sites,                                                                condensed info
                  shopping), DVDs                                                 weekly mags,
   focus, high                                                                    flyers, posters      Keeping up to
  engagement.                                                                                        date with things.

                                                    early eve

                                                 Easy TV (comedy,
                                               soap, headline news),
                                               radio in background,
                                                     read mail

                                    Process of detaching, refuelling for evening,
                                        catching up on the day with others.                         WHY and HOW they are
                                                                                                    interacting with them...
SOURCE: Kellogg’s Pilot July 2005
The benefits of the Connections approach
A process based on individual brand and
communications objectives

Recognises that channels can work in different
ways : creating brand consideration and
activating sales

Covers all the potential places where people
can meet brands

Provides depth insights into brand and category
dynamics as well as a channel planning
currency
Delivered through sophisticated software and
ROI analyses
A few final thoughts
1. Don’t forget that the
media are brands too
2. Brands (including media brands) can create
experiences to fit into people’s lives and
engage with them


Vodafone and      Volvo        Ford         Nike and
Bridget Jones   Ocean Race   Champions     FreeStyle
    movie                     League     championships
3. Understand ALL aspects
of people’s lives to identify
ways that the brand can fit –
demographics only tell part
of the story
4. Keep it simple ……


Success still depends on delivering relevant,
compelling content to interested and involved
people, conveniently and at the right time

If we continue to do this we can benefit from
change rather than suffer from it

								
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