During the traditional slow news week between Christmas and New Year, a critical article appeared on the Bloomberg News website: “BRIC Decade Ends With Record Stock Outflows as Goldman Says Growth Peaked.”
The story outlined how Goldman Sachs, who coined the term BRIC -- (Brazil, Russia, India, China), suggested that the best may be over for the largest emerging markets. Nonetheless, that still means an average economic growth rate of 6.1% in 2012 compared to a BRIC high of 9.7 percent in 2007, based on International Monetary Fund projections. However, nations like Indonesia, Nigeria and Turkey may overshadow the BRICs in the next five years.
Interestingly, while the most recent ad forecasts have pointed to BRIC growth to fuel the global ad economy, optimistic 2012 ad expenditure forecasts from ZenithOptimedia, Magna Global and Group M all suggest that Quadrennial events like the US President Election, The European Soccer Championship and The London Olympics will augment ad growth, in addition to a Japanese ad recovery.
ZenithOptimedia also believes that the ten developing markets will deliver half of global ad spend growth between 2011 and 2014, while developing markets will increase their share of the global ad market from 32.3% to 35.9% over the next three years.
Perhaps most significantly, Zenith also predicts that in 2012 advertisers will finally invest cash reserves to win market share and stimulate consumer demand.
Rishad Tobaccowala, Chief Strategy and Innovation Officer of VivaKi, which combines the digital and media assets of the Publicis Groupe including Digitas, Razorfish, Starcom Mediavest and Zenith Optimedia, posts in his blog each December the four key factors affecting the future of advertising. For 2012, he suggests the following:
1. Advertising is entering a golden age and will continue to be a booming industry.
He believes: a) technology is allowing for better ways of targeting and measuring advertising, b) brands are growing more important in a fast-moving and cluttered world and c) globalization is bringing hundreds of millions of people with desires and needs into the marketplace.
2. Think People, Think Mongrel, do not only Think Digital.
Technology and digital platforms will play a critical role in the future of advertising. However successful people and agencies will not be "digital at the core;" the future will be about people and putting people at the core. “We need to train people who are cross-bred and hybrid and who are willing to work together. The future of advertising will belong to mongrels and will be about people at the core.”
3. The future of advertising will not fit in the containers of the past.
Most market leaders in the Advertising Agency, Media Company and Marketer fields have been designed for the past, while systems, incentive plans, organizational structures have also been designed for the past. The goal of 2012 is to bring in new talent and actually incentivize the new behaviors that are now most important.
4. Change begins with us.
The future of advertising and marketing is much less about technology and platforms and much more about the talent and the mindset in the industry.
2012 Advertising Shift
AgencySpy editor Kiran Aditham recently shared his thoughts for 2012 with Media Bistro in the US. He’s been observing a significant shift as more major brands are severing long-term relationships with their agencies of record—even parting with agencies they’ve used for half a century. He sees this continuing in 2012 “as stalwart brands feel like monoliths and want to change.”
Media Trends
According to Randall Rothenberg, President & CEO of the Internet Advertising Bureau (IAB), the rise in popularity of tablets will bring back a focus on creativity -- rather than technology -- when it comes to online advertising. He believes 2012 will become a breakthrough year for ad creativity and digital content. Rothenberg calls the movement a "cultural breakthrough," as ads will be created first for the tablet, rather than start on TV or print in magazines and be repositioned to fit on a tablet. These ads, designed for consumption on tablets first, will have a cultural impact on society.
Other Media Trends for 2012 include:
• Branded-content production: Marketers will continue to have greater involvement in original-content production, which should lead to better standards for successful campaigns.
• Privacy Expectations Will Shift
There will be widespread cultural change as people find it more acceptable to offer increased personal details on social media—from sharing likes, opinions, photos, videos and other personal information.
• Advertising that’s User-Selected: As inventory becomes commoditized and brands focus on user initiation as a metric of engagement, user-selected advertising will grow.
• Search Engine Interaction Will Change
Google's Social Search will change the way we interact with search engines by pushing relevant, real-time content from our personal networks to the front of search results, making them more personalized. “Influencer Marketing” concepts will become more important.
• A Greater Merging of Web and TV Talent: TV stars will be looking to use their name and reputation to gain more significance in social video, while YouTube and Twitter celebrities start to make more waves on TV.
Content Aggregators Grow in Importance
• As the ability to manage the volume of content becomes more daunting, content aggregators will become critically important… and potentially become a new growth industry.
• Online Video & TV Content Blend: For agencies, the distinction between online video content and television content will become less pronounced. This will affect how budgets are spent and result in an increased ad load online as video viewership grows.
• Publishers will Include More Video: The evolution to more video on publisher sites is inevitable, even if it starts in display.
• Social Networks “De-Centralize”
Digital experiences will leverage the power of social networks through personal information and the relationships as concepts like Facebook Connect and Google's FriendConnect grow.
• Augmented Reality Will Alter Business Relationships:
Information from social-media will be used to enhance everyday experiences with a melding of contacts with Twitter fees with Reviews linked to GPS mapping. Socially- enabled CRM will change how companies manage business relationships forever.--The Internationalist Magazine
Showing posts with label Digital Media. Show all posts
Showing posts with label Digital Media. Show all posts
Sunday, January 8, 2012
Tuesday, September 13, 2011
Italian fashion adapts to changing media world
Andrea Tremolada, Worldwide Communications Director of Salvatore Ferragamo, is one of the most respected media experts in fashion advertising. It's also clear that he possesses boundless stores of energy. At the 10th Annual Connect Alliance Conference in Lago Maggiore, he provided an overview of the luxury giant's media strategy -- directly after landing at Malpensa from South Korea and before rushing back to headquarters for meetings with Mrs. Ferragamo. (The Founder's widow, Wanda Ferragamo, is also amazingly energetic. Although in her '80's, she continues to come to work daily.)
Salvatore Ferragamo, a family empire built on a heritage of fine craftsmanship, now sells its products in 75 countries and through 573 stores bearing its name. The company produces two different major ad campaigns each year. "We are proud to make products that are totally produced in Italy," says Tremolada. The current Ferragamo campaign was filmed at Lake Como's famed Villa d'Este—just an hour north of the company's Milan office -- to underscore the brand values of a "Made in Italy" label.
Andrea Tremolada admits that he knows much more about the Ferragamo consumer than ever before -- largely due to the exchange of information through social networks. "In last 3 years, we've found that consumers have become more involved than in the past. Those who are very interested in our products offer tremendous feedback about our quality and share opinions that are helpful to our brand.
We have come to see key differences between those who buy online and those who shop in stores. And given the number of people who use their phones to take photos of products they'd like to find, we are looking forward to the mobile aspects of e-commerce in the near future."
As a rule, luxury and high-fashion brands have been slow to embrace digital media as they seek media environments associated with wealth, good taste and those tactile qualities found with elegant print vehicles. Yet Tremolada is convinced that Ferragamo should invest more in its online activities. 'This is not just for advertising, but to continue the strong relationship we have with our consumers." He also admits that there are times when an iPad application is better than a glossy magazine—particularly when video can be embedded and the brand story expanded.
He also recognizes the need for the company to become a publisher. "We need to be a content producer, particularly if we want to keep our Facebook presence meaningful to customers every day. When people are interested in the label, they always want to know more."
Although still largely invested in print, Tremolada's media strategy varies by country and the brand's median age is changing. For example, Ferragamo runs its advertising in a teen magazine in South Korea—something that he says "would never happen in Japan or even Italy." South Korea also boasts one of the highest shares of the company's internet spending. China has a portion of its budget dedicated to Outdoor, a medium now associated with luxury when placed adjacent to upscale shopping malls accessed largely by those who can afford to visit by cars. Ferragamo also runs television advertising in the US and Brazil with some limited spots in Japan for its fragrances.
Sales by region now reflects the overall trend found by most luxury marketers, which underscores the huge significance of the Asia Pacific region, followed by the US -- which has now outpaced Europe. Top countries include Japan, China South Korea and Taiwan, while fast-growth markets now include Mexico and Brazil. - The Internationalist Magazine
Salvatore Ferragamo, a family empire built on a heritage of fine craftsmanship, now sells its products in 75 countries and through 573 stores bearing its name. The company produces two different major ad campaigns each year. "We are proud to make products that are totally produced in Italy," says Tremolada. The current Ferragamo campaign was filmed at Lake Como's famed Villa d'Este—just an hour north of the company's Milan office -- to underscore the brand values of a "Made in Italy" label.
Andrea Tremolada admits that he knows much more about the Ferragamo consumer than ever before -- largely due to the exchange of information through social networks. "In last 3 years, we've found that consumers have become more involved than in the past. Those who are very interested in our products offer tremendous feedback about our quality and share opinions that are helpful to our brand.
We have come to see key differences between those who buy online and those who shop in stores. And given the number of people who use their phones to take photos of products they'd like to find, we are looking forward to the mobile aspects of e-commerce in the near future."
As a rule, luxury and high-fashion brands have been slow to embrace digital media as they seek media environments associated with wealth, good taste and those tactile qualities found with elegant print vehicles. Yet Tremolada is convinced that Ferragamo should invest more in its online activities. 'This is not just for advertising, but to continue the strong relationship we have with our consumers." He also admits that there are times when an iPad application is better than a glossy magazine—particularly when video can be embedded and the brand story expanded.
He also recognizes the need for the company to become a publisher. "We need to be a content producer, particularly if we want to keep our Facebook presence meaningful to customers every day. When people are interested in the label, they always want to know more."
Although still largely invested in print, Tremolada's media strategy varies by country and the brand's median age is changing. For example, Ferragamo runs its advertising in a teen magazine in South Korea—something that he says "would never happen in Japan or even Italy." South Korea also boasts one of the highest shares of the company's internet spending. China has a portion of its budget dedicated to Outdoor, a medium now associated with luxury when placed adjacent to upscale shopping malls accessed largely by those who can afford to visit by cars. Ferragamo also runs television advertising in the US and Brazil with some limited spots in Japan for its fragrances.
Sales by region now reflects the overall trend found by most luxury marketers, which underscores the huge significance of the Asia Pacific region, followed by the US -- which has now outpaced Europe. Top countries include Japan, China South Korea and Taiwan, while fast-growth markets now include Mexico and Brazil. - The Internationalist Magazine
Tuesday, August 2, 2011
The End of 'Random Acts of Marketing'
In its newly-released annual report on the State of Marketing, the Chief Marketing Officer (CMO) Council sees a new commitment to marketing performance measurement, particularly in relation to digital effectiveness and social media integration as marketers seek increased accountability. The report is based upon the in-depth responses of 600 CMO Council members in 110 countries and was produced with the support of Deloitte and OpenText.
Integration, alignment, visibility and return on investment (ROI) are among the key requirements for marketing performance improvement according The 2011 State Of Marketing: Outlook, Intentions and Investments. Any resources or agencies that fail to bring innovation, technical knowledge or value‐added thinking to the marketing equation are certainly at risk in today’s environment. The survey results underscore how CMOs now require marketing analytics talent coupled with strategic planning and business development experience to better target, segment and then act on growth opportunities.
"While marketers have been focused on transforming their operations and customer engagements with hosted services and digital solutions, many have actually created a grab bag of siloed point‐solutions that just proliferate Random Acts of Marketing," said Donovan Neale‐May, Executive Director of the CMO Council. "Today’s successful marketing organization is unifying its extended ecosystem, aligning more effectively with business and sales groups, and integrating campaign components to drive efficiency and more measurable outcomes."
The report also concludes that marketing, as a function, continues to reach beyond the borders of branding. CMOs surveyed indicated a growing authority in such areas:
The report also concludes that marketing, as a function, continues to reach beyond the borders of branding. CMOs surveyed indicated a growing authority in such areas:
* Strategic planning and forecasting -- 74%
* Business development and collaborating- 46%
* Pricing- 36%
* Distribution/channel management - 36%
* Product design and specification - 27%
* Pricing- 36%
* Distribution/channel management - 36%
* Product design and specification - 27%
This growing authority matches the rising expectations on marketing leaders to driving business growth and revenues. Among the top deliverables for CMOs are:
* Driving top‐line growth - 46%
* Growing and retaining market share - 45%
* Better defining brand value - 31%
According to one in four marketers surveyed, marketing spend is being influenced by a shift to digital media and online marketing effectiveness. However, just 5% of respondents claim high marks in regard to their current online marketing performance capabilities. To improve the situation, those surveyed are planning headcount increases in interactive design, online advertising, search engine marketing, web analytics, and integrated campaign management.
Cost cutting and operational efficiencies are priorities for the marketers polled. In order to increase the impact and value of marketing, 64% of respondents say they will move to improve customer segmentation and targeting. They will also consider: greater investment in digital demand generation programs (43%); increased plans to qualify and track the conversion of leads (42%); and a commitment to explore alternative media and new routes to market (41%).
The State of Marketing Report also determined that almost 64% of respondents said they reported directly to the CEO, president or COO, while another 14% said they were accountable to a regional vice president, general manager or division/business group head. Among the respondents, 34% held CMO or Head of Marketing titles, while 33% held roles of Vice President or above.
The CMO Council is a global affinity network of 6,000 chief marketers who control more than $200 billion in annual spend.--The Internationalist Magazine
Integration, alignment, visibility and return on investment (ROI) are among the key requirements for marketing performance improvement according The 2011 State Of Marketing: Outlook, Intentions and Investments. Any resources or agencies that fail to bring innovation, technical knowledge or value‐added thinking to the marketing equation are certainly at risk in today’s environment. The survey results underscore how CMOs now require marketing analytics talent coupled with strategic planning and business development experience to better target, segment and then act on growth opportunities.
"While marketers have been focused on transforming their operations and customer engagements with hosted services and digital solutions, many have actually created a grab bag of siloed point‐solutions that just proliferate Random Acts of Marketing," said Donovan Neale‐May, Executive Director of the CMO Council. "Today’s successful marketing organization is unifying its extended ecosystem, aligning more effectively with business and sales groups, and integrating campaign components to drive efficiency and more measurable outcomes."
The report also concludes that marketing, as a function, continues to reach beyond the borders of branding. CMOs surveyed indicated a growing authority in such areas:
The report also concludes that marketing, as a function, continues to reach beyond the borders of branding. CMOs surveyed indicated a growing authority in such areas:
* Strategic planning and forecasting -- 74%
* Business development and collaborating- 46%
* Pricing- 36%
* Distribution/channel management - 36%
* Product design and specification - 27%
* Pricing- 36%
* Distribution/channel management - 36%
* Product design and specification - 27%
This growing authority matches the rising expectations on marketing leaders to driving business growth and revenues. Among the top deliverables for CMOs are:
* Driving top‐line growth - 46%
* Growing and retaining market share - 45%
* Better defining brand value - 31%
According to one in four marketers surveyed, marketing spend is being influenced by a shift to digital media and online marketing effectiveness. However, just 5% of respondents claim high marks in regard to their current online marketing performance capabilities. To improve the situation, those surveyed are planning headcount increases in interactive design, online advertising, search engine marketing, web analytics, and integrated campaign management.
Cost cutting and operational efficiencies are priorities for the marketers polled. In order to increase the impact and value of marketing, 64% of respondents say they will move to improve customer segmentation and targeting. They will also consider: greater investment in digital demand generation programs (43%); increased plans to qualify and track the conversion of leads (42%); and a commitment to explore alternative media and new routes to market (41%).
The State of Marketing Report also determined that almost 64% of respondents said they reported directly to the CEO, president or COO, while another 14% said they were accountable to a regional vice president, general manager or division/business group head. Among the respondents, 34% held CMO or Head of Marketing titles, while 33% held roles of Vice President or above.
The CMO Council is a global affinity network of 6,000 chief marketers who control more than $200 billion in annual spend.--The Internationalist Magazine
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