A summary of the most relevant consumer insight research in the U.S. and U.S. Hispanic markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop. This week, we looked at a few holiday season shopping insights and a couple more interesting research highlights.
Deloitte’s 34th annual holiday retail survey, which polled 4,410 respondents across the United States, found that the average household is planning to spend nearly $1,500 this holiday season. E-commerce sales are expected to grow by 14-18%, and 70% of smartphone users said they will use their device to make a purchase.
RedPoint Global has announced the results of a survey that examines the opinions of over 1,000 U.S. consumers about holiday season shopping. According to the survey, nearly a third of respondents indicate that receiving irrelevant offers from brands is their primary frustration during the holidays. Brands should really pay attention to this, as 60% of survey participants said they are more likely to purchase from retailers who send them personalized content and offers.
According to Periscope By McKinsey’s “2019 Holiday Season Shopping Report”, 51% of consumers use smartphones to compare prices with competitors while in the physical store. In addition, 33% use smartphones to search for in-store discounts or coupons, and 30% leverage them to look up further product information.
According to the latest survey from Bankrate Credit Cards, six in 10 U.S. credit or debit cardholders (64%) say they have saved their card number online or in mobile apps despite safety concerns. The survey finds that more than half (56%) of U.S. adults save their credit or debit card information on a retailer or service’s website (like Amazon, Walmart or Netflix) while 32% save their credit or debit card information in a mobile payments app (like Apple Pay or Google Pay).
Research by BritePool and the USC Annenberg Center for Public Relations show that, among 1,004 U.S. adults, 87% would select a “Do Not Sell My Personal Information” option on any given website. The people most receptive to sharing were those in the 18-34 age category, only 49% of whom said they would choose “Do Not Sell.”
According to a survey by online coupon platform Shopper.com, 95% of U.S. respondents have used an online coupon at least once. One in three U.S. respondents search for a discount code almost every time they make an online purchase. Across all respondents (U.S. and U.K. consumers), 42% of women and 32% of men have helped a friend or family member find an online discount code, and 86% of all respondents feel frustrated at themselves when they miss the opportunity to make a saving on an online purchase, but one in three feel annoyed at the retailer for not making them aware of potential savings.
Check out the last report including other holiday shopping insights here.
Marketing moves at Hyundai, Tommy Hilfiger, Twitch and more. People change positions, get promoted or move to other companies. Portada is here to tell you about it.
Hyundai Motor America CMO Dean Evans has stepped down from the role. Evans had been with the company for over four years.
Panoramic, an enterprise SaaS company, has announced the appointment of Mike Christopher as Chief Technology Officer. Christopher will oversee the company’s product strategy and development, as well as lead the engineering, product, and data science teams.
Droga5, which was acquired by Accenture Interactive earlier this year, has named its first-ever Global Chief Creative Officer in Neil Heymann. In addition, Felix Richter and Tim Gordon have been elevated to co-chief creative officers, Alexander Nowak has been promoted to global head of art, Juliana Cobb to executive creative director and Julia Albu to head of creative integration.
Republica Havas has announced the appointment of Jason Wolske and Danny Alvarez as the agency’s Executive Creative Directors, effective immediately. Based out of Republica Havas’ Miami headquarters, Wolske and Alvarez will report to Luis Casamayor, Co-Founder, President and Chief Creative Officer. In the newly-created roles, they will lead the agency’s creative team across a roster of major clients.
Tommy Hilfiger has appointed Hollister’s former SVP of Global Marketing Michael Scheiner as its Chief Marketing Officer. After news of Avery Baker’s departure in January, the company divided the CMO responsibilities among other senior members of staff.
Twitch has named Doug Scott, formerly Head of Marketing at Zynga, as its Chief Marketing Officer. Scott will replace Kate Jhaveri, who left after two years to become top marketer at the NBA.
Accenture Interactive’s 2019 Consumer Pulse Survey, See People, Not Patterns, gained insight from 8,000 consumers in Canada, France, Germany, Italy, Spain, Sweden, the U.K. and the U.S. about the responsible usage of consumer data and the right strategies to avoid forcing invasive data collection methods onto reluctant users.
Inventive vs. Invasive
It’s no secret that invasive brand promotion can be a double edge sword. On the one side, it undoubtedly increases visibility. On the other, it often makes users feel uncomfortable, annoyed or interrupted. This can greatly damage the coveted bond of trust brands strive to forge with their consumers. In fact, Accenture’s survey found that almost 69% of consumers would cut ties with a brand if data usage became too invasive.
Glen Hartman, head of Accenture Interactive North America and global digital marketing lead, explains the need to draw a clear line between inventive and invasive. The whole point is to collect data in a responsible manner, with respect for the consumer’s preferences. In other words, by making a conversation and askingfor consent rather than, well, spying on them.
“The good news is there is a big opportunity for brands to take a thoughtful approach to data and create an impactful customer experience while doing so, building trust and an emotional connection customers crave,” says Hartman.
There’s been a conversation going on for many years about transparency and accountability in the industry. Brands have to be open and straightforward about what they ask from customers, if only to serve them better. Accenture’s research shows a staggering 73% of consumers would gladly share information with their favorite brands as long as they’re honest about how they’ll put it to use. It’s a reassuring way of recognizing consumers’ concerns.
Don’t be a [total] stranger
Perhaps the best way to understand their misgivings is to compare data collection to human interactions with strangers. “People expect someone they’ve never met not to recognize them and the same logic applies digitally”, explains the report. “Forward-thinking brands are finding ways to approximate how humans behave, in a humane and ethical way.”
No one would expect anyone to simply hand out information about their personal behavior to a total stranger. It’s no different for brands. “Many consumers report that brands don’t know them well enough to serve them in a way that makes them feel special”, reads the report. “When brands seem to know too much —and act on that knowledge— they can inadvertently lose consumers’ trust.”
More than 75% of consumers say they are uncomfortable with data collection via microphone or voice assistants while 51% said invasive ads are on the rise. Nearly 30% of consumers said a brand had gotten “too personal”, and 69% of these consumers would stop doing business with a brand or reconsider their relationship because of this. Colloquially put, flatly avoid creepy tactics.
What to do?
So, how can brands collect data in a respectful, consensual manner? Accenture Interactive recommends:
Using fresh opt-in alternatives to track users, such as encouraging consumers to authenticate on websites and mobile applications;
Bringing ad tech contracts in-house to access more effective, transparent data collection methods; and
Building the data architecture of enterprise systems in a way that reflects current regulations.
Mexican millennials prefer Airbnb, did you know? A summary of the most relevant consumer insight research in Latin American markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop.
According to a recent study by Americas Market Intelligence (AMI), 56% of Mexican millennials prefer to stay at an Airbnb than at a hotel. Airbnb’s guests are having a slightly better experience, too, as 81% users said they were satisfied as opposed to 74% of hotel guests. According to AMI’s study, 63% of Airbnb users recommend this option while only 47% of hotel visitors are willing to spread the word.
In 2018, Mexicans watched 8% more free broadcast TV than the year before. According to the National Survey on Audiovisual Content Consumption, carried out by the IFT, 72% of Mexicans who own a TV watch free broadcast channels. According to the survey, the most-frequently consumed content types are news, movies, and soap operas.
A survey by Colombia’s Retailers Federation (Fenalco) has concluded that 44% of Colombian credit card holders have had to refrain from making a purchase in the last 12 months because they ran out of credit. In addition, the survey shows 89% of consumers prefer to make purchases at stores that offer their own credit options (not credit cards).
EBANX, a payments fintech company headquartered in Brazil that connects global businesses to Latin American consumers, has raised a significant follow-on investment from FTV Capital, a US-based growth equity investment firm. The investment contributed to making the fintech company the newest unicorn of Latin America.
LBI Media, Inc. has announced the appointment of Peter Markham to Chief Executive Officer. Markham will also serve on the Company’s Board of Directors and had previously served as interim Chief Operating Officer. The company also announced the appointment of Brian Kei to Chief Operating Officer. Kei will continue to serve as the Company’s Chief Financial Officer.
LATV Network has hired Max Ramirez as Director of Digital Sales & Brand Partnerships based in its Los Angeles office. Ramirez brings over 20 years of experience in sales and marketing and will report to LATV’s Vice President of Sales & Strategic Partnerships, Andres Rincon.
Tony Weisman, who has been Chief Marketing Officer of Dunkin’ Donuts for over two years, has announced he will leave the company on December 1.
The IAB Technology Laboratory (Tech Lab) today announced that SpotX Chief Scientist Neal Richter was elected by its board of directors as the new chair. In this position, Richter will play a key role in guiding the Tech Lab’s work to evolve privacy-compliant standards for programmatic advertising, simplify video ad delivery, increase supply chain transparency, and reduce fraud, among other initiatives.
Denver-based and culturally-driven agency Motive has announced it’s expanding into Los Angeles by taking on the business formerly known as Pitch, another Project Worldwide agency, effective immediately. Matt Statman, Motive’s Founder, will be heavily involved in the evolution of the LA outpost, as will Krista Nicholson, Motive’s president.
What: CommerceNext has published the results of a survey of 100 e-commerce decision-makers, meant to explore similarities and differences in the priorities of traditional and digital-first DTC brands. Why it matters: The report is meant to be a benchmark that helps marketers evaluate their priorities in terms of how to distribute budget among different technologies and objectives.
E-commerce is unpredictable; it forces marketers to be on the lookout for what’s coming next and reacting if only a little bit late can turn out to be fatal. In order to be more ready, decision-makers have to decide what matters more in every step of their strategy, which means having to prioritize investments and objectives. With these challenges in mind, CommerceNext conducted a survey of 100 top marketing executives in traditional and digital-first direct-to-consumer brands.
The objective was to provide a useful benchmark for online retailers to measure their priorities and decide how to distribute budget in the most convenient way. According to the results, even though both traditional and digital-first online retailers point to an increase in marketing budget, digital-first brands are spending way more while also diversifying their strategies. Below are the key insights from the study, titled How Leading Retailers and DTC Brands Are Investing in Digital.
Which Investments Did Work in 2018?
In order to compete, marketers need to be quick to decide which investments can help them reach their objectives. According to the study, 65% of respondents said their 2019 e-commerce marketing budget increased over the previous year, while only 10% of marketers are reducing their budget. In 2018, the top marketing investment priorities were acquisition marketing (81%), retention and loyalty marketing (43%) and promotions (32%).
When asked about the results of those investments, acquisition marketing had the highest level of satisfaction rating: 53% of respondents said acquisition marketing met expectations in 2018, and 24% said it exceeded expectations. On the contrary, 52% of respondents said unified customer data (e.g. a single view of the customer) performed below their expectations. Almost the same number had similar levels of dissatisfaction in personalization investments (51%).
What Are the Priorities of Digital-First and Traditional Retailers?
According to the report, consumers have more than doubled the amount of time they spend on DTC brands’ websites over the last two years. Even though all the companies in the study have increased their e-commerce marketing budgets, digital-first DTC brands are spending more: 78% indicated that their 2019 budget is higher than the one they had in 2018, while 60% of traditional retailers said the same.
Because DTC brands are based on data-driven decisions and customer-centric operations, they are growing and evolving at an accelerated pace. As stated in the report: “fueled by venture capital investment, these brands have focused on growth vs profitability.” Therefore, the most significant challenge for this group of brands is “achieving profitability at scale”, with “Managing tech integrations” coming in second, with 33% of DTC brands identifying it as a barrier. This is a side-by-side comparison of what each group considers to be the most significant barriers, extracted from the study:
How to Make the Best of the 2019 Holiday Season
According to the NRF, the 2018 holiday retail season exceeded expectations. Over 165 million Americans reportedly shopped either in stores or online from Thanksgiving Day through Cyber Monday 2018, and online purchasing, in particular, experienced a 19% increase compared to the previous year. The NRF has forecasted that 2019 retail sales will increase by 3.8% compared to 2018, and the online sales growth rate will increase between 10% to 12%.
DTC brands are increasing their budgets at a higher rate than traditional retailers and spreading that budget more evenly. For example, digital-first DTC brands are increasing their budgets equally (70%) between acquisition marketing and retention/loyalty marketing. On the other hand, traditional retailers are emphasizing acquisition marketing, with 77% of respondents increasing their acquisition budget compared to 64% of traditional retailers increasing their retention budget.
After 9 months of search following Joe Tripodi’s departure, Subway has named Carrie Walsh as Chief Marketing Officer for North America. Walsh previously filled the role of SVP, Marketing at Michaels Stores since 2016.
Walmart has revealed that Sam’s Club President and CEO John Furner will become the president and CEO of Walmart U.S., effective Nov. 1, succeeding Greg Foran, who will become CEO of Air New Zealand Ltd.
Lone Thomsen has departed her role as Head of Media and Connections strategy at the Coca-Cola Company to become CMO at he Meatless Farm Co. She has worked with the Meatless Farm’s leadership as a strategic advisor since November 2017.
SiriusXM has combined the chief marketer positions of its Pandora and flagship brands into one role. Former TD Ameritrade chief marketer Denise Karkos will lead the marketing area. Aimée Lapic, Pandora’s CMO since 2017, has left the company.
Teads Latin America has announced the appointment of Juan Pablo Suárez as Head of Performance in Latin America. We had a chat with Juan Pablo to find out more about him and his new role.
Teads, the global media platform, has just announced that it has hired Juan Pablo Suárez as Head of Performance for Latin America. This appointment will help Teads reach its goal of offering an integrated media solution to its clients, particularly focusing on performance. In his role, Juan Pablo will identify new opportunities and drive growth of strategic relationships with the main players in the region through Teads’ TrueVisits product.
TrueVisits is based on a Cost Per Incremental View (CPIV) model. This means clients only pay for new users, not counting those who have visited the website in the past. Moreover, Teads only charges for each user’s first visit during the campaign.
Juan Pablo will help Teads get closer to its goal of offering a complete media solution to brands while supporting publishers, media agencies, and creative agencies. As Head of Performance, Suárez will play a strategic role, he will work closely with the sales teams of all the Latin American countries where Teads is present. Also, he’ll open the door for new clients that have been traditionally involved with performance.
Juan Pablo’s mission will be to help the team move closer towards performance perfection.
Suárez has previously worked at Kontent Room, where he led AI and digital performance tools. Previously, he served as Sales Manager at Criteo Latin America. There he created e-commerce strategies for Latam Airlines, Falabella, VivaAerobus, El Palacio de Hierro, Linio, Mercado Libre, Despegar, and others.
“Adding Juarez to our regional team will allow our most important clients to talk about performance and the Latin American markets with a specialist in both areas,” said Eric Tourtel, SVP of Teads Latin America in a press release. “His mission will also be to help the team move closer towards performance perfection, and lead the creation of products specially adapted to the region.”
Congratulations Juan Pablo and Teads Latin America for the addition to the team. Good luck in your journey towards perfection! In order to get to know the new Head of Performance better, Portada asked him the following questions.
Get to Know the Head of Performance of Teads Latin America
Portada: What’s the best piece of advice you’ve ever received?
J.P.S.: “You shouldn’t give away your time, but don’t deny it either.” Meaning you should be available when you’re needed, but always being careful how and where you spend your time.
Portada: What’s your most-frequently-used app?
J.P.S.: WhatsApp: always in need of easy, instant communication.
Portada: If you had a time machine, where would you go?
J.P.S.: I’d choose one of those moments when I managed to forget about my daily routine.
Portada: What key knowledge will you bring to the table as Teads’ Head of Performance?
J.P.S.: During the last 6 years, I’ve had the chance to work for companies that are focused on the latest digital technologies and performance. This has made me acquainted with the clients’ digital needs. Now, I’m aware of what I need to keep in mind in order to put together really successful campaigns with good performance results.
Portada: What expectations do you have from your new role?
J.P.S.: Teads is one of the main players in the digital advertising ecosystem. The objective of Teads’ performance product, TrueVisits, is to provide brands with an ally that truly understands their needs. As such, we’re a partner that’s not afraid of running risks to achieve tangible results. Most players charge per every click or impression, but we are different in that we only charge for “real visits”. I expect to bring Teads to a place where we can safely say we have reached our goal.
Portada: What is your perspective on the future of the industry?
J.P.S.: More brands are taking control of their media buying strategies. Thus they’re expanding the value of data for business decision-making. On the other hand, consumers are increasingly more demanding. This means the industry will have to connect with them in a more tactical, personalized way, through platforms that favor added value and transparency.
A summary of the most relevant consumer insight research in the U.S. and U.S. Hispanic markets. If you’re trying to keep up with the latest happenings, this is your one-stop shop.
Accenture’s13th Annual Holiday Shopping Survey of 1,500 U.S. consumers has found that Americans expect to spend $637 on holiday shopping this year, on average, with approximately six in seven respondents planning to spend either the same (57%) or more (28%) than they did last year. Consumers are expected to do half their purchases in physical stores, with lower prices cited as the top (82%) factor that would tempt them to make an in-store purchase.
For the first time, consumers in the U.S. might do more of their holiday shopping online than in physical stores, according to a new survey. In its annual Holiday Outlook, PricewaterhouseCoopers LLP found that 54% of respondents will opt for the convenience of their smartphones, laptops, and PCs, and even in-home voice assistants, compared to 50% last year.
CGS has announced findings from its 2019 CGS Customer Service Chatbots & Channels Survey. CGS surveyed more than 1,000 Americans and found that 86% of consumers prefer to interact with a human agent. Moreover, 71% of respondents said they would be less likely to use a brand if it didn’t have human customer service representatives available. Only 30% believe that chatbots and virtual assistants make it easier to address customer service issues. However, for respondents under 35, confidence in AI-based solutions reached 43%.
Recent research by Deloitte shows that consumers’ tolerance to advertising varies according to the type of shows they like. A new survey which polled 2,000 U.S. found respondents whose most-watched type of show was talk shows had the highest tolerance for advertising (11.6 minutes per hour), and the ones who prefer scripted comedies or dramas have the lowest (7.2 minutes).
According to the National Retail Federation’s annual survey of 7,400 U.S. consumers, 68% of Americans said they plan to celebrate Halloween. Sixty-nine percent declared they will hand out candy, while 49% will decorate their homes and 47% will dress in costume. In total, they are expected to spend US $2.6 billion on Halloween candy, about $25 dollars per person.
A recent CodeBroker survey of over 1,100 U.S. consumers on coupon and offer personalization found that sending custom offers to past consumers is a good opportunity for brands. The results show that 73% of respondents answered with a definite yes to the question, “Do you prefer to shop at stores that send you custom discount offers based on your purchase history?”.
Marie Gulin-Merle has stepped down from the roles of Chief Marketing Officer at Calvin Klein and Chief Digital Officer at PVH Corp. Gulin-Merle had served Calvin Klein’s marketing area for over a year, adding PVH duties earlier in 2019.
Horizon Media has announced that it has hired John Koenigsberg as General Manager of Big, launched in February of this year. Koenigsberg will report to Gene Turner, EVP Chief of Horizon Next.
FCB has named Tyler Turnbull as CEO of North America. Turnbull, who was formerly CEO of Canada and New York, will lead the U.S. operation. He will report to worldwide CEO Carter Murray.
T-Mobile has welcomed Javier Barrientos as new Director of Diversity & Inclusion Engagement as part of its Hispanic Heritage Month efforts. “I joined T-Mobile last month as the Director of Diversity & Inclusion Engagement, a role I carefully examined to make sure I truly understood T-Mobile walked the talk of its commitment to diversity,” said Barrientos. “The evidence of inclusion was staggering against other prospective employers.”
PR and marketing firm Edelman has named Matthew J. Harrington its Global President, on the 67th anniversary of the firm’s founding by Daniel J Edelman. Harrington, who will also retain his current title of Global Chief Operating Officer, becomes only the third president in the history of the firm and the first not named Edelman.
Mike Sheldon, CEO and Chairman of Deutsch North America, has informed parent company InterPublic Group (IPG) that he will leave the agency at the end of the year. He first joined Deutsch in 1997.
Karen Walker, formerly Chief Marketing Officer at CISCO, has stepped down from her role at the company and will be joining Intel as the new CMO. She previously served as Vice President of Marketing, Americas, for HP.
The Drum has appointed Matt Sullivan to U.S. Vice President. Sullivan has moved to New York from London to take up the role, in which he’ll assume responsibility for consolidating The Drum in the market, as well as launching new services.
GroupM’s MediaCom unit has appointed Nadine Thomson to the newly-created role of Global Chief Technology Officer. In her role, Thomson will lead MediaCom’s Global Data Solutions team.
Interpublic’s R/GA has promoted Jess Greenwood from U.S. Co-Chief of Strategy to Global Chief Marketing Officer. She joined the agency in 2012 in a strategy role.
Brad Wilson, former Chief Marketing Officer of LendingTree, has joined Disney Streaming Services as executive VP of Performance Marketing for Disney Plus and ESPN Plus.
LinkedIn Chief Marketing Officer Shannon Brayton has announced that she will step down by the end of the year to spend more time with her family. Melissa Selcher, currently LinkedIn’s VP of Brand Marketing and Corporate Communications, will replace her.
What: Multicultural Audience Measurement experts offer Portada insights around the problem of audience under-representation. Why it matters: Measurement firms under-represent multicultural audiences by as much as 25%, which causes a negative impact in media investment and produces overall flawed results.
Audience measurement has never been more complicated, as cultural nuances and consumer behavior shift and change, and the proliferation of new technologies demands multi-channel strategies. The task is even more difficult when it comes to measuring multicultural audiences. Experts tell Portada major measurement firms under-represent these audiences by as much as 25%. If this is the case, the media budget for targeting multicultural audiences should be substantially higher than it is right now. Just for Hispanic marketing, Portada estimates overall expenditures of US 6.07 billion in 2019. However, if firms under-represent audiences by up o 25%, media expenses could increase by up to US 1.5 billion. Admittedly, this is a back-of-the-envelope calculation. Nevertheless, it highlights the importance of accurate multicultural audience measurement in satisfying clients’ needs, and its potential for the multicultural media industry.
The lack of a common audience measurement currency in multicultural audience measurement impacts media investment levels negatively.
For many years now, companies like Nielsen and Kantar have offered advanced TV audience measurement. However, competition has increased. New players offer digital solutions that claim to be more comprehensive. This forces the bigger players to think of new ways to keep up with how audiences move and evolve. Inconsistencies between reported data reveal the lack of a common audience measurement currency in multicultural audience measurement. Hence, there’s a negative impact in media investment.
Furthermore, marketers’ biases lead to incorrect data interpretation. In turn, this leads to bad consumer experiences and negative overall results. How can we expect to move the needle if we can’t even tell where it is? In order to find out more about how to face these challenges, we talked to experts who understand how audience measurement impacts media planning and buying: Dana Bonkowski, SVP, Multicultural Lead at Starcom; Mebrulin Francisco, Managing Partner, Sr Director, MPlatform, GroupM; Nelson Pinero, Senior Digital Director, Senior Partner at GroupM; and David Queamante, SVP, Client Business Partner at UM Worldwide.
Audience Under and Over-Representation
All interviewees agree that multicultural audiences are still under-represented by major measurement firms. One of the reasons for this, explains Mebrulin Francisco, is the lack of insight into how audiences behave. Francisco mentions as an example all those times when data providers collected data on Hispanics. But once her team digged deeper, they realized the majority of Hispanics represented were English-dominant. This is a big issue because “it means the data is not representative of all the Hispanics in the U.S., creating a blind spot,” she says.
The same has happened in the other extreme, where you can have over-representation of Spanish-dominant consumers, creating a blind spot for Bilingual or English-dominant Hispanics. “This is especially the case within sets that depend on cookie level data,” Francisco explained. “If this is true for the Hispanic segment, which is the largest among multicultural consumers, think about the under-representation of African-American or Asian segments. Many data providers do not even report on these multicultural sub-segments.”
Language preference won’t singlehandedly define and capture an audience. So, in many cases, a large portion of a given audience is not captured.
Therefore, the first thing is having a representative sample of the audience. It might seem obvious, but in the words of David Queamante, “Unless measuring companies take the time to ensure they are gathering information from a representative sample of users, they will under-count multicultural audiences by default”. This represents a challenge. As Dana Bonkowski mentions, “engagement with culture-driven content is often the best signal to identify whether or not a person is ‘multicultural’. But language preference won’t singlehandedly define and capture an audience. So, in many cases, a large portion of a given audience is not captured.”
Multicultural Media Consumption is Elusive
Marketers have long assumed that a universal approach can reach audiences. However, “in doing so they fail to identify key nuances in motivations, attitudes, and behavior across consumer segments leading to an incomplete marketplace assessment,” explained Mebrulin Francisco. In the case of multicultural consumers, it’s even more complicated to hit the mark: Since datasets are limited, firms “do not flag multicultural consumers accurately and do not provide a holistic view of the brand’s performance, blurring meaningful insights,” said Francisco.
Multicultural media consumption is concentrated on certain outlets that [aren’t always] included on measurement companies’ surveys and reports. Therefore, multicultural media consumption may seem to ‘disappear’.
Moreover, multicultural audience measurement is rarely accurate. Why is that? As David Queamante explains, “Multicultural media consumption is concentrated on certain outlets that may not always be large or prominent enough to be included on the measurement companies’ surveys and reports. Therefore, multicultural media consumption may seem to ‘disappear.'” Besides, as Queamante mentions, not all measurement companies offer surveys in Spanish. This oversight considerably reduces the representation of Spanish-dominant Hispanic audiences, for example.
Privacy Issues Complicate Measuring Even More
This new era has brought significant advantages. For example, we can measure whatever happens as long as it happens online. However, the fact that it’s now easier to use and collect data as also brought up important privacy issues. Nelson Pinero predicts: “With audiences paying a little bit more attention to how and which personal data is being shared, it will become a bit more difficult to reach a diverse audience.”
However, this is already a reality. Media buyers and agencies are working together around the problem of accurate audience measurement. But “what follows now is all part of the balancing act between data and the years of experience that allow the media buyers to react dynamically to market conditions and to, ideally, optimize plans,” adds Pineiro. “Audiences will take more control of how they are reached, and agencies trying to find the right audience will need to cross-reference their deterministic/probabilistic data to enhance plan performance.”
What Happens Now?
The obvious prediction is that data science will become even more important in the digital world. “Measurement is the new black,” declares Mebrulin Francisco. “As we push towards a data-driven age in marketing, science, quantification, and data are going to continue to be a cornerstone of decision making. If I cannot measure the impact of my investment, understand my audience impression on a site, or reach potential, it will be very hard to make a case for using a partner.”
Start building out multicultural and cultural expertise in house to accurately represent these audiences in your data streams.
Moreover, the immediate future is inescapably multicultural. Marketers need to use art to harness the power of all this data in order to represent audiences accurately. Experts like Mebrulin Francisco believe a good way to start is with first-party data. “If you are in the audience measurement space my recommendation is to start building out multicultural and cultural expertise in house to accurately represent these audiences in your data streams.”
When asked for her views on the future, Dana Bonkowski shared the hope that “marketers invest to better understand the business-building power of multicultural audiences. More than 30% of all Americans fall in one or more ‘multicultural’ audience buckets. The question should be “How can you afford not to invest against better multicultural audience measurement?”
We caught up with Kia Motors America’s Eugene Santos, Senior Manager, Multicultural Marketing, about Kia’s new multicultural campaign, Driving Forces. Anything related to the Hispanic market comes toSantos’ desk first, so he knows a thing or two about how to market to Hispanic consumers. He told Portada New York 19’s audience all about Kia’s first time using influencer marketing to target Hispanics.
Eugene Santos, Senior Manager of Multicultural Marketing at Kia, has spent years practicing how to market to Hispanic consumers. The last time we spoke to him,he gave us a preview of what he had in store for the brand’s next Hispanic-oriented campaign. All we knew at the moment was the goal, to reach the Hispanic segment through an emotional connection to the brand’s new slogan. Fast forward to a couple of months later, Kia has launched Driving Forces, a campaign that involves real Latino stories.
“We launched a message during the super bowl: Give it everything,” Santos said to an audience of fellow brand marketers at Portada New York. “In the past, Kia has been successful with Superbowl commercials. But now that the message is out there, what do we do with it? What does it mean? Especially for Latinos.”
The problem facing automakers these days, according to Santos, is that vehicles are smarter and last longer, so consumers are holding to their cars for more time. “The need for an automobile has decreased,” Santos pointed out. But the campaign has already proved to be fruitful, as the 200-percent increase in traffic to the Kia Soul landing page shows. Santos shared this and other pieces of information in exclusive at Portada New York… metrics not even Kia’s management had seen!
Still Talking Up the Hispanic Market
For a Korean brand that is relatively new to the U.S., the new Driving Forces campaign is a huge deal. “As all multicultural marketing managers know, budget is an issue,” said Santos. “Since Hispanics account for 18% of the population, General Market assumes we should have 18% of the marketing budget, but it doesn’t work that way.”
In fact, a real problem that stood out throughout the Portada New York conferences was the need to convince management of the relevance of Hispanic consumers. “You’d think that in 2020 we wouldn’t need to fight to convince organizations about the Hispanic business opportunity,” commented Santos. “But we keep fighting the same fight. Therefore, make sure you can show metrics that the general market understands.”
The good news is: insightful, culturally nuanced campaigns are an important step to increasing companies’ awareness…, and getting a few more ad dollars. “Telling a story allows us to continue to connect with our audience and keeps the brand on top of mind. This might look like a simple project, but it’s making our company reconsider how they think about multicultural,” shared Santos.
An Effective Campaign Will Take You Far
As Eugene Santos explained, a successful campaign can yield results that are very important for the long run: not only can it get you more budget with management, but it can also ease you into the next step of your strategy.
That’s why Santos likes storytelling; it can elevate your brand by telling relatable stories to consumers and then follow up on those stories. But many times complications arise from the start in multicultural marketing. Whether it’s the lack of multicultural representation in management, inaccurate audience measurement or a lack of creative assets, it’s still difficult to know how to market to Hispanic consumers, starting from the (still relevant) question of what language to use.
Problem: How to Market to Hispanic Consumers
“When people think ‘Hispanic’, they automatically assume they have to use Spanish,” told Santos. “It doesn’t have to be that way. So for the first time, we’re using English-language creative to reach Hispanics. Bilingual and bicultural creatives go a long way.”
But the problem persisted: how could they elevate the Kia brand in a meaningful way? There were many factors at play, like limited assets, recent leadership changes and a low budget. “For a long time people have assumed that Kia is a cheap Korean Brand, but for the last 5-6 years, Kia has been recognized with top quality distinctions with brands like Mercedes and Porsche,” pointed out Santos. “Kia has various brand messages, but the objective was to dilute it into one message that created top brand consideration.”
Answer: Brand Ambassadors Who Share the Consumers’ Stories
Influencers are a risk, and yet most marketers have experience with them. They all learn that the only effective influencer marketing is based on brand ambassadors that share a true affinity with the brand’s values. For that reason, Santos chose two unique influencers that could tell the Latino story, because it was theirs.
“How do we tell the underdog story, which is really the Kia story, and how do we tell the Latino story to them?” asked Santos rhetorically. “I want to talk about the professional who is trying to do something different and relate it to my key customer.”
Consequently, Kia worked with Andrea Londo, a self-proclaimed border child who commuted from Tijuana to San Diego every day to go to school. Now, she is living her dream of being an actress. “You probably don’t know her, but in 2-3 years you will,” assured Santos. On top of everything, Londo drives a Kia Optima, which made for a perfectly organic fit.
Clara Pablo, the other influencer featured in the campaign, is the manager of Miami-based Latin Pop group CNCO and of Colombian singer Maluma. Music is one of Kia’s verticals, which allowed for an organic fit with Pablo. In addition, she’s a breast cancer survivor and awareness advocate, which adds “a humanistic element that allows us to send out a message not only about cars but beyond. Young Latinos want to connect with brands that stand for the same things they do.”
Once You Have the Right Message, Put it In the Right Creative (and Get the Right Partner to Do It)
One of the first things to do if you wish to launch a successful campaign is choosing the right partner. Because of the various problems multicultural marketers have to face, an agency that can really carry your message is as important as the message itself. For the Driving Forces campaign, Kia partnered up with Verizon Media. “We knew they could programmatically expose our message to a wider audience that is bicultural. Also, their creative studio, RYOT, could help us with assets that allowed us to show our message in relation to the creative,” explained Santos.
Together, they came up with docu-style creatives and an array of branded formats to tell the story of Latinos and Latinas. Through the two “driving forces” the brand chose as ambassadors, they focused on upbringing, biculturalism, accomplishments and their will to tackle a challenge. “The main goal was for them to connect with us,” stressed Santos. “We wanted to hit them at different points of their journey to let them know that we’re here for them and we understand them.”
Results (Spoiler: Cultural Marketing Works)
The results so far have been positive. The completion rates above the benchmark of both videos show that consumers are interested. Also, CTRs are the same in Spanish and English, so language doesn’t always matter as long as viewers really connect with the message. “If the emotional component is there, they’ll stick around and come back,” said Santos. Reach and engagement have also been good, which has given Santos the confidence to ask for more budget.
Ultimately, Santos concluded that it’s all about three key rules. First, define your strategy: be clear on what the content should speak to and ensure alignment to overall brand strategy. Second, listen to your gut. Pick a partner that can execute and deliver significant reach for your targeted audience. Finally, don’t forget to ask yourself this question: what’s my next move?
According to a statement from M&C Saatchi L.A., Huw Griffith, CEO of M&C Saatchi North America, has died at age 55. The statement reads: “An innovative and visionary leader, Huw inspired the people, clients and partners who had the privilege of working with him with his kindness and generosity. We’re enduringly grateful for his decades of leadership and commitment, and he will be sorely missed by us all.”
Grey Group has promoted Nirvik Singh to Chief Operating Officer. As COO, Singh will lead the development of Grey’s integrated marketing model; identify acquisition targets and new capabilities to enhance the agency’s offering and build its future-facing digital, social, shopper marketing and design practices.
BBC Studios has named Argentinian Karina Dolgiej VP of Content Sales for the Latin America and U.S. Hispanic markets. In her new role, she’ll be in charge of optimal distribution of BBC Studios’ content across broadcast and digital channels in Spanish-speaking Latin America and the U.S. Hispanic market, as well as overseeing the sales teams in Miami and Mexico City.
Lee Applbaum has been named CMO of cannabis brand Surterra Wellness. He previously served as Global CMO of the Patrón and Grey Goose brands at Bacardi. At Surterra, he’ll lead global marketing teams in product innovation, integrated brand marketing, retail branding and sales management.
Lorena Nunez has been promoted from Associate Marketing Manager, Multicultural to Associate Director, Multicultural at Allstate.
Consumer insights platform DISQO today announced the appointment of Jean-Philippe Durrios as its Chief Financial Officer (CFO) and Chief Operating Officer (COO), as the company prepares for accelerated growth.
Centerline Digital, the B2B customer experience marketing agency, has announced the appointment of its executive vice president of Digital Media, Jerry Tomaiolo. Joining the team in their Raleigh headquarters, Tomaiolo will be charged with optimizing the company’s digital media strategies at scale by incorporating machine learning and analytics into the creative process.
IAB, the national trade association for the digital media and marketing industries, has named digital publishing and mobile product expert Zoe Soon to the role of Vice President for Mobile.
Fandom appointed Stephanie Fried as Chief Marketing Officer. Fried, who had been executive VP, marketing, research & analytics at Condé Nast, will be responsible for creating stronger connections with Fandom’s audiences across platforms and enabling brands and content owners to engage with those fans.
IPG Mediabrands’ Philippe Krakowsky has been promoted to Chief Operating Officer. Krakowsky will work directly with Michael Roth, the 73-year-old chairman and chief executive of IPG. Both will oversee the entire business but Krakowsky will focus on Mediabrands including Acxiom, Carmichael Lynch, Deutsch, Hill Holliday, Huge, and R/GA.
Entravision Communications Corporation announced the appointment of Robert McCauley as Senior Vice President of Integrated Marketing Solutions, and Erin Voden as Senior Vice President of Integrated Marketing Solutions for its Washington, D.C. market, both effective immediately. They will both report to Juan Navarro, Regional Vice President of Local Media Sales.
Experts in Influencer Marketing campaigns discuss best practices. Vivian Baron, Founder and Creative Chairwoman at Band of Insiders, presented the panelists: Best Buy Mexico’s E-commerce Subdirector José Camargo, Grupo Bimbo’s Global Consumer Engagement Lead Giustina Trevisi, Band of Insiders’ Influencer Marketing Manager Leonardo Vargas, and Pepsico/Drinkfinity’s Director of Business Innovation & Marketing Yamile Elias.
How powerful can influencer marketing campaigns be? Is it for everyone? During the last years, the trend of using influencers as a tool to amplify a campaign or message has grown to a great extent. As Vivian Baron, Founder and Creative Chairwoman of Band of Insiders believes, “It is no longer about the relationship with the media, but rather about how we amplify our client’s message correctly. There’s great interest placed on influencer marketing, but there’s also a great lack of knowledge around it.”
In spite of this lack of knowledge, many brands have tried to take advantage of the opportunity that influencer marketing represents. Unfortunately, not everyone has succeeded. “Digital platforms are so strong today that influencer marketing can have a hugely negative effect,” asserted Baron. “It should be taken very seriously.”
Can (or Should) Any Brand Take Advantage of Influencer Marketing Campaigns?
With the buzz around this type of marketing, every brand wonders if influencers can boost their ROI. While this can and does happen, it isn’t as simple as some could believe, and influencers can help a great deal in things that are not necessarily direct sales. “Influencer marketing is key in any brand, not only to create awareness but for many other things,” said Yamile Elias, Director of Business Innovation & Marketing, Drinkfinity/Pepsico. “At Drinkfinity we’re using it for insights, to ask the consumer certain things. When we have a problem they can help us solve it, but only if it’s a good fit.”
For Giustina Trevisi, Global Consumer Engagement Lead at Grupo Bimbo, brands are already surrounded by influencer marketing, and it would benefit them to adopt a position towards it. “Influencers are something we can’t ignore. It’s a ‘can’t hide’ matter, where the question is ‘how to leverage‘,” asserted Trevisi. Influencers are a great tool in any ecosystem, but it doesn’t work on its own. You’re not supposed to have an Influencer Marketing strategy on its own, but rather include it in your overall communication strategy.” Moreover, she agreed with Yamile Elias that this tool helps in diverse areas, such as crisis management, campaign support, and PR and perception. While these don’t have a direct impact on your ROI, “they obviously expand reach,” she said.
What matters now is the content, sales should only be the consequence.
What Are the Keys to Crafting Successful Influencer Marketing Campaigns?
Giustina Trevisi summarized the essential elements when sharing one of Bimbo’s stories of success: 1. Objective, 2. Target, 3. Creative. “The first step is knowing the objective and whom we intend to reach. We held onto a current event, something that was happening at the moment (Peru qualified for the World Cup), and we focused on getting the formats, times, and platforms correctly,” she told. “You need to choose the correct target and influencers according to your objective and budget. If you show the idea to management and they don’t like it, that is a good sign, as it’s not for them.”
A Matter of Strategy
You need to choose the correct target and influencers according to your objective and budget. If you show the idea to management and they don’t like it, that is a good sign, as it’s not for them.
“Influencer marketing should be carried out in very strategic ways,” added José Camargo. “For Best Buy, something that has worked really well is these people we call ‘insiders’ that don’t even know they are influencers. These kids can get 3-4 thousand people in 20 minutes for an opening.” What matters the most, he emphasized, is a good fit between the influencers’ values and those of the company: “The brand and the influencer should have similar values. Only when the influencer is convinced by the brand are the publications really natural: the brand’s ideals rub off on his or her posts and comments.”
How to Select an Influencer?
As we have seen so far, having a clear objective matters, but so does selecting an influencer that matches that objective. The first thing, then, is knowing what each type of influencer can achieve.”There’s an influence pyramid that we can divide into mega, macro, and micro. Each one of these has different results,” explained Leonardo Vargas. “However, the new trend is ‘hidden influencers’, people who have an impact both online and offline. We need to look at their profile and their basic social circle in order to provoke a more direct impact on sales.”
Having an expert to deal with them helps with the flow and builds long-term relationships.
For Better Results, Employ an Expert
The next thing would be the actual process of selection. For Giustina Trevisi, this is much easier with the help of a specialist. “I would recommend others to work with influencer agencies, to work with experts,” she stated. “It’s important to have someone who knows how to handle them, have a good communication with them. We work with several specialized agencies who take our brief, give it back, then we do a second brief, they give it to the influencer and then they present a creative proposal. If I do the regulation part, I lose the emotional component. Having an expert to deal with them helps with the flow and builds long-term relationships.”
Can Technology Make the Process Easier?
“We have to automatize processes through platforms, technology, data, correlations… We need to use what’s available, but the decision has to ultimately go through a human filter who knows the target and can make sense of everything,” said Giustina Trevisi. “A tool can give you a diagnosis, but a human being has to make de decision. A machine uses algorithms, but the context has to be human.”
“I’m in favor of digitalization and automatization, but the human part is inescapable,” agreed Leonardo Vargas. “Instagram stories, for example, can give you very complete information, but only when you have a team of experts constantly looking at what’s going on on social media. Every day there are more platforms; with just one click you can execute a campaign, but we need to go back to the brief. Everything needs to be taken care of.”
What Can We Expect for Future Influencer Marketing Campaigns?
It’s easy to see where we’re going if we take a quick look at where we’ve recently been. As Yamile Elias commented, “If we analyze the number of times people search the word ‘influencer’, we find that the number has grown 200% since 2016, and it grew 60% in the first quarter of this year alone. Estimations show the budget for influencer marketing in the U.S. to go up to 5-10 billion dollars.”
Facebook, Twitter, etc. have become just another showcase for brands, and consumers don’t want to see that anymore.
According to Leonardo Vargas, there are already a couple of trends that we can expect to see in the near future. “One: strategies linked to SEO and automatized keywords, which are different to Google’s ad words because they get placed on social media,” he explained. “Two: audience marketing for influencers; a type of audience analysis that helps you know what works, not what looks well. A new trend that will be very important, and it’s a great time to be pioneers, is the rise of new social media. Facebook, Twitter, and the others have become just another showcase for brands, and consumers don’t want to see that anymore. There are new social media that are going back to what Facebook and Twitter were about originally, like Mastodon, in which users are in control and it’s free of ads.”
In short, we should try to go deep into the influencer marketing campaigns tool instead of staying at a superficial level. Influencers are for every brand only if the strategy is very clear. Objectives, channels and the influencers themselves should fit, not only to minimize crisis risk but to ensure good results overall. It’s very important to analyze the data, be aware of the results you’re aiming at. We shouldn’t underestimate Influencer marketing, it isn’t easy, but it can really bring you success. It should be a part of your whole marketing strategy, not as an isolated campaign but as a long-term program. If we do it well, it’s a great bet. Otherwise, it can really hurt you. That’s why you should partner with experts.
What: Apps are undeniably changing the marketing landscape. Consumers can also choose from a myriad of options, making it difficult for brands to find the right app marketing strategies. Why it matters: Today’s marketing is all about attracting loyal consumers and building meaningful connections with them. It’ also about finding the right app marketing strategy to be relevant on mobile platforms. Apps can be a shortcut to success. But you have to know how to tackle the challenges.
As the world diversifies and gets more complex, the ways and media for doing advertising multiply faster than a mortal marketer can count them. Today, the average person walks around with the whole world inside a 5-inch screen in the palm of their hand. Their attention span is of no longer than 8 seconds. But they consume great amounts of content through mobile.
One way for consumers to connect with brands in a practical way is through apps. According to Nielsen, people spend an average of 30 hours per month in them. Easier said than done, though. There are about 3.8 million apps available for Android users (2 million for Apple consumers). However, the app market has the potential to grow to over US $100 billion by 2020. There’s no doubt having an app can get you noticed. It can bring you added success and ROI. But major challenges could make the risk not worth the pain.
Number of Apps per Store in Q1 of 2018
Getting Your App Found is the First (and Easiest) Part
The first step towards a meaningful connection with a potentially loyal consumer is, logically, getting your app installed. This in itself encompasses a big part of app marketing. There are many ways to market an app (just as there are to market everything else). Statistics show all those methods work really well in getting installs. In 2017, there were 197 billion app installs versus 149 billion in 2016. That’s a 50 billion jump in one year. If Statista is projecting right, by 2021 the total app downloads number will jump to a stunning 352 billion.
But how do users even find that many apps to install? According to a 2015 study conducted by Google and Ipsos MediaCT in which 8,470 smartphone-owners had used apps in the previous week, 40% of users browse for apps in app stores. Even though this is true, there is a series of other ways to find out about apps. The easiest one is perhaps a search engine. Especially for local apps, it’s rather easy to get noticed when you provide a service that people are prone to look for. Tech reviews and travel facilities are categories that throw most app results at search-engine users. Also, for this reason, experts recommend search ads as an app-marketing tool. Fifty-percent of people (participants of the Google survey) who downloaded apps said they were prompted to do so by a search ad.
App marketing strategies to Get Noticed (In Any Which Way You Can)
The ways to do this are simple. Competition, however, demands creativity. It won’t matter if you put hundreds of display and video campaigns in place if you don’t offer a unique value to users. As James Tiongsonwrites, “People turn to apps to ease their daily grind, and they’re more likely to use them if they serve a specific purpose,” and one way to do this is with mobile app install campaigns that allow brands to reach audiences that are looking for an app similar to theirs.
People turn to apps to ease their daily grind, and they’re more likely to use them if they serve a specific purpose.
Google’s research revealed that two in three consumers look for apps that simplify their lives, like a retail app that includes sale details and coupons for when shopping in-store. “Brands can avoid getting lost in the app fog if they provide clear value,” adds Tiongson, and they certainly should feel so inclined.
Installs Are Just Like Votes (They’re a One-Time Thing)
However, the biggest problem with installs, just as it can be done with a Facebook like, is that they can be undone. 38% of users who download an app that will make a purchase easier uninstall the app right after the transaction has been completed. A great number of apps aren’t even used once they’ve been downloaded. Getting an app noticed is only the first step. But even if it is easy to find everywhere, nothing guarantees it’ll be retained, or even launched for the first time.
In order for your app to be installed and launched, it needs to have several elements clear. For example, a good landing page shows your app before it’s launched. It’s more likely to be effective if it provides concise information about the company, its offering and why it’s different and valuable. When users have to decide if they’ll give you a chance, you need to offer them a carefully planned app name, description, icon and screenshot selection. All this should be thought of with App Store Optimization in mind.
The ability to architect a comprehensive app marketing strategy–one that prioritizes quality over quantity and engagement over installs–is what will distinguish the leaders from the also-rans.
Once an app is out in the market, there are a number of KPIs to take into account in order to ensure the success goes beyond the install, as shown in this infographic by RubyGarage. Depending on the results, you will know how to tweak your app marketing strategy.
Ultimately, Retention Beats Installs Every Time
Once a number of users have given you a chance, the question is how many of them will return. As we’ve seen in previous Portada articles, retention is the biggest challenge of selling apps. Keeping consumers is increasingly difficult as options multiply. Marketers need to really communicate with the user, who has an 8-second attention span, reduced curiosity, and limited storage space on her iPhone.
“The ability to architect a comprehensive app marketing strategy–one that prioritizes quality over quantity and engagement over installs–is what will distinguish the leaders from the also-rans,” comments Peggy Ann Salz on Forbes. As she explains, 95% of app users are likely to churn within 90 days, which means a high risk for marketers who get frustrated and need to go deeper into the funnel. Perhaps the most important thing to keep in mind: Installs give you volume, but engagement drives revenue. In December 2017, she talked to ten remarkable mobile marketers and compiled the following list of pieces of advice (among others).
Find the ‘golden path.’ Deliver the right message to the right customer at the right time using the right channel on the right platform. “It’s the mantra of all marketers, but a must for app marketers,” declares Salz.
Get personal in your messaging. Really getting to know your users and being ready to communicate with them is crucial for engagement and interaction.
Don’t be afraid to fail; experiment and learn from the feedback.
Partner to prosper. Treat ad networks and ad tech vendors as partners—as opposed to just another traffic source.
Match creatives to audiences. Most app marketers are using data and analytics to perfect their marketing, but they should plan ad creatives according to each audience’s tastes and habits if they want a competitive edge.
What: Portada got the chance to talk to Rishad Tobaccowala and ask him about key trends shaping the marketing technology landscape. Why it matters: Tobaccowala, Chief Growth Officer at Publicis, has decades of experience in strategy and growth innovation. He has been recognized by numerous institutions as a visionary with fruitful ideas for the future of business and marketing.
This article was originally published in August 2018, after Rishad Tobaccowala’s master talk titled ‘How to remain relevant and grow in transformative times’, organized by Publicis Media Mexico.
Rishad Tobaccowala, Chief Growth Officer with 36 years of experience at Publicis Media Groupe, has been called by many as a visionary, which makes sense if we consider that his main area of focus is the future. Technology is advancing at an unforeseen speed, and Tobaccowala’s insights about how to be prepared for the future leave no doubt about why he has been recognized as one of the five Marketing Innovators by Time magazine.
For everyone involved in business and marketing, whether it’s brands, media or press, it’s important to think about strategy. For Rishad Tobaccowala, explaining what strategy means isn’t that difficult. “You only have to think about three words,” he explained. “Future, Competitive, Advantage. You have to think about the future, about your competitors, and about what advantage your business brings when faced with them.” That sounds simple enough, but how will we know in what direction to go? “You can’t succeed if you go left while the rest of the world goes right,” he added. Therefore, he proceeded to explain which three global trends are already shaping the future.
Three trends are shaping the whole world, and marketing isn’t exempt…
… Quite the contrary, marketing is one of the disciplines that will become increasingly important as these three trends shape the future, according to the Publicis executive. These are unstoppable trends that will affect everyone, he says, for better or for worse: 1) Globalization. It used to be a western idea, but it is now a global phenomenon. 2) Demographics. With the growth of Asian, African, and Latin American populations, the future is more and more diverse. 3) Technology. It’s been around since the discovery of fire, but the last decades have seen an acceleration that forces us to adapt as quickly as possible before it’s time to adapt again. Thus, explained Tobaccowala, every new idea needs to be aligned with globalization, diversity, and new technologies, or else, it is destined to fail from the very start.
The bond between technology and marketing
So far, there have been two key moments in which technology has changed forever the marketing technology landscape, asserted Tobaccowala. The first one occurred in 1995, with the start of the World Wide Web and the first connected age. “All of a sudden you could look for products, brands, and services online,” he explained. Then, in 2007, Facebook went from .edu to .com, and the second connected era, one of social networks and mobile networks, exploded. Eleven years later, everyone has at least one smartphone with more computing power than the first space shuttle.
You’re no longer marketing to people or consumers, but to gods.
So, how do these advancements affect the marketing technology landscape and ways to do marketing? For Tobaccowala, the first thing is accepting that every consumer now has god-like power on the palm of their hand. “I always say to my clients, ‘You’re no longer marketing to people or consumers, but to gods. How are we going to satisfy gods?” he asked rhetorically.
“Clients can no longer say something like ‘We’re going to empower customers’ because they already are empowered. All companies are having major problems on this second connected age because we think consumers are waiting for us, big mistake.” Therefore, everyone involved in marketing needs to make sure to talk to real consumers, who are now more similar to gods than ever, and stop believing in some made-up fantasy about what people want.
What should we do about it?
Rishad Tobaccowala declares that as technology keeps advancing and we move towards the third connected age (the one of Artificial Intelligence and Machine Learning), marketing will be more important than ever because it is the discipline that tries to understand and meet consumers’ requirements through a combination of art and science.
“When you go into a boardroom, you don’t see a CMO, you see a CEO, a CFO… But it’s time for marketing to take over the companies, or the consumer will run away,” he asserts. “Today, we need to stop being dollar-obsessed and become people-obsessed. We have to eliminate internal friction and silos, be ready to outsource instead of insourcing. In the era of networks, networks are what we need.” Moreover, he says, we should be ready to look differently at certain things that we think we know, like the way brands are built and how businesses are scaled.
The first thing I do when any client is building a brand for the first time is I use the word SAVE. S = For whom are you a solution? A = How are you giving people access to new opportunities? V = What value do you bring? E = Why is someone’s experience better because of you? So I ask, ‘How are you going to SAVE someone?’
“The most important thing I’ve learned,” said Tobaccowala. “Is that you can’t control anything but yourself, even if you’re senior. No one has enough data to really know anything, the most we can aspire to is to become data-driven storytellers.” But perhaps even more important is the notion that, even though we don’t always want things to change, we can’t expect the future to be static, and in order for everything to stay the same, we are the ones who need to change.
Some recommendations to remain relevant
Portada: What is the role of the marketing teams of the future? How can CMO’s predict what’s coming and be ready for change?
R.T.: Some parts of the future are easier to predict than others. I’ve always believed that marketing is becoming more important, and therefore CMO’s need to be taken more importantly. Companies are not paying enough attention to their marketing teams, and it’s becoming more important that they do. And why do they not pay enough attention to marketing teams? Because marketing didn’t use to be as important as it is today. Marketing is a combination of art and science, sometimes in a similar way to writing. You train yourself to be a writer, but there’s an art to writing a story. Marketers have become very comfortable with numbers, they have tended to be less comfortable with emotion, but the future is not only about spreadsheets, it’s also about the story.
There are differences that have to do with things you can’t count. […] That’s what marketing is about. That’s actually what life is about.
It’s not always about the numbers
It’s very important that marketers not only let the numbers make the decision. One thing I advise our clients is they should be comfortable talking about things they’re uncomfortable with. Business has an emotion to it, not everything is defined. Blaise Pascal wrote, ‘We choose with our hearts and we use numbers to justify what we just did.’ Luxury brands are growing more than any other category right now, but the reality is that a Mercedez Benz won’t take you to a place faster or better than a very cheap Nissan or Toyota. The difference in performance is very low, but there are other differences that have to do with things that you can’t count: it’s about design, status, feeling. That’s what marketing is about. That’s actually what life is about.
Portada: What is the best way for marketers to connect with the emotion part of the industry?
R.T.: The biggest way I think marketers can learn (besides looking up everything you don’t know) is to keep in mind the customer of your client, to observe people. And one of the ways to observe how people are changing is by spending a lot of time with art and culture. When someone asks ‘How can I understand people better?’ I sometimes say ‘Why don’t you read Madame Bovary? Or Don Quixote?’ These are actually about people.
When someone asks ‘How can I be an entrepreneur?’ I suggest them to look at what artists do, whether writers or painters. Every time you get up in the morning and you have to write a story, what do you have? A blank sheet of paper, and you have to invent something! Marketing is about people and business. We should be proud that we are working in something that is art and science, and not run away from the fact that it is both.
Portada: You mentioned in your presentation that the future is about going with inevitable diversity. Do you think there is a way for brands to adopt attributes that get them closer to multicultural audiences?
R.T: There are four different levels of diversity:
1)Your communication should reflect that you recognize culture. The first thing is being aware of cultural differences. Speak to that cultural difference. The way that you frame your brand should resonate with the reality of that particular culture.
2)Diversity is importantwithin your company. Things like the failed Pepsi ad happen when there is no one there to see it. Even if you are very smart, if you try to market, say, in Mexico, but there isn’t even one person with Mexican heritage in your group, you’d probably come up with something very stupid.
3)People are more human than they are different. There are people that say ‘I need to create a message that is just for African-Americans’. If your product or service isn’t different and you’re only selling a human message, why do you try to make it a totally different story? Part of diversity is understanding that sometimes humanity is more common than differences are different.
My worry is a world in which people stop saying things for fear of getting into trouble.
4)People are naturally diverse and they have diversity of talent, but they also have diversity of thinking. It means someone should be able to tell you that they disagree with you, and you should be not thinking that it’s because they are anti-something, they can be just anti-your-thinking. My worry is a world in which people stop saying things for fear of getting into trouble. Diversity of thinking is the most important one of all, and one of the ways of getting better at it is traveling. My belief is that the ultimate diversity is the diversity of mindsets; part of it is because of your background, part of it comes from culture, but sometimes you can have men and women from different cultures and of different colors, and everyone thinks the same.
Portada: You also mentioned the need for companies to consider the scale of influence, what would you recommend to brands that are investing in influencer marketing?
R.T.: It’s a matter of authenticity and purpose. When you get an influencer, the influencer works if ideally, they are talking about a product or service that they already used and liked before you bid them to say they like it. The catch is that when you can buy influencers, it backfires.
A lot of influencers take money from a brand that they don’t use or care about. The other thing that happens is that now everyone is an influencer, which means that no one is an influencer. Kylie Jenner’s products work because she’s selling something she really uses. Some people charge thousands of dollars to send an Instagram post, but it doesn’t work if it’s not authentic and purpose-driven. At least in a commercial, it’s clear that it’s a commercial, but in this case, people just think that you sold yourself out.
AI and the marketing technology landscape
Portada: We’re entering the era of Artificial Intelligence. If marketing is a combination of art and science, how will we not lose the art part, the human touch, as machines start to take over?
R.T.: I didn’t talk about it today, but I’ve written about it on my blog. The third connected age, which has just begun, is composed of three things. The first connected age was a page connecting to other pages; the second one was people connecting to people, either through mobile or social. The third connected age means three things: data connecting to data, which is what AI is; things connecting to things, which is the Internet of Things; and new ways of telling stories, which is voice-based technology, augmented reality, virtual reality, and mixed reality.
This is what will happen: first, because of AI, certain things that machines can do better will be done by machines, but people plus machines have been found to be better than machines in most cases. There are certain things that machines can do, but when things are changing all the time, people can think and compute the change on the machine that computes it. Second, these technologies allow us to tell stories in different ways.
More people are connecting because of AI, that allows things like google translate. We can also tell stories through Alexa and things like that. And another thing that it’s in its early days is, if you go to the NYT website (other websites have it), you’ll find a Virtual Reality section where you can learn about a refugee camp and actually explore it. You start to believe you are in there, you feel empathy. When people started to see that, they started to contribute. Part of this technology will go very math-oriented, but also part of it will provide ways to connect.
I tell stories because I do things that machines cannot do. […]Machines are getting more accurate, and also faster. The human side of you is going to be the differentiating side.
Portada: How will consumers in this new marketing technology landscape be sure brands are connecting with them in a human way?
R.T.: The human touch will become the difference. What can be automated will be automated. I have an undergraduate degree in advanced mathematics and an MBA from one of the most quantitative schools in the world (University of Chicago), but I do as little as I can with numbers. I tell stories because I do things that machines cannot do. When someone tells me ‘The spreadsheet told me to do this’, I say ‘I hope you get a job soon’, because if you tell me what the spreadsheet says, ‘What is your value? Why do you have a job?’ Not only blue-collar jobs will be automated, but also some white-collar jobs. Machines are getting more accurate, and also faster. The human side of you is going to be the differentiating side.
What:H Code has announced it has signed an exclusive partnership with the largest media conglomerate in Perú, Grupo El Comercio. We talked to Pablo Rivera, VP of Publisher Development at H Code, about the strategy behind this deal and what’s next for H Code. Why it matters: This exclusive partnership is one of many signed by H Code in 2019. In order to create authentic connections, H Code reaches out to potential media partners in order to fulfill the needs of the Hispanic market.
“For the past 180 years, El Comercio has been a top source for national and global news for the people of Perú, and now through the group’s 11 digital sites, for those of Peruvian or other Hispanic origin or descent living in the United States. To be able to partner with such a prestigious organization allows H Code to access the most reliable digital properties and connect U.S. Hispanics with top brands through high-quality content,” said Parker Morse, CEO and Founder of H Code, in a press release.
Working exclusively with leading media companies across Latin America allows H Code to utilize large, engaged U.S. Hispanic audiences and maximize campaigns for brand partners. This exclusive partnership is one of many signed by H Code in 2019, including deals with Radio Mitre, AmericaTV, and Artear.
We reached out to Pablo Rivera, VP of Publisher Development at H Code, in order to find out more about the strategy behind these partnerships.
A Friend of H Code’s
Portada: How is H Code’s year going so far? What results have you seen from the deals you’ve closed already?
P.R.: We just celebrated our fourth year anniversary and our growth has been incredible to say the least. We started originally with 4 members and have now grown to 50+ employees across our offices in Santa Monica, San Francisco, Chicago, New York, and San Salvador. Part of our success has been thanks to our incredible relationships with 375+ publisher properties that resonate with the U.S. Hispanic audience and allow us to reach, target, and influence this powerful consumer market.
Portada: What does it take to become an H Code partner? What do you look for in the media companies you sign deals with?
Pablo Rivera: Creating authentic connections between publishers, advertisers, and U.S. Hispanics is imperative to H Code. In order to be able to do so, we reach out to potential media partners we know align with the needs of the U.S. Hispanic market. Our audience of 32 million Hispanic users come to our sites to consume content in their native language because they wish to stay connected with their culture and countries of origin while living in the United States.
When we search for our publishers, we consider the leading digital properties across Latin America, Spain, and the United States that we know Hispanics use most and look into their total reach in the U.S. We also examine the performance of each ad format, encouraging publishers to place their ad spaces in a very visible location on their sites.
Our goal is to partner with every digital publisher from North America, Central America, South America, and Spain that publishes content in Spanish.
Approaching Peruvian Culture
Portada: Why did you decide to sign with El Comercio? Why Peru?
P.R.: Grupo El Comercio is known throughout Latin America. It’s premier site, for which the corporation is named, is the leading newspaper in Perú. We are proud to partner which such a respected publisher. H Code understands the diversity that exists within the U.S. Hispanic population, which is composed of groups from many countries of origin. Hispanics of Peruvian origin or descent are one such group, and it is important to us that we represent and become familiar with the nuances of their audience segment. Along with El Comercio, we have also closed exclusive partnerships with major newspapers from other LATAM countries like Mexico, Argentina, El Salvador, and others. As we continue to grow our goal is to partner with every digital publisher from North America, Central America, South America, and Spain that publishes content in Spanish.
Similarities vs. Differences
Portada: What sets Peruvians apart from Peruvian Americans, or from the rest of U.S. Hispanics?
P.R.: U.S. Hispanics—whether foreign-born or U.S. born—are ambicultural, because they expertly navigate between Hispanic culture and American culture. Peruvian culture is unique to that country and, in this instance, can be defined as a subculture that exists as a part of the larger Hispanic culture. There are many similarities between Peruvians living in Peru and those of Peruvian origin or descent that live in the United States. Both groups, for example, share cultural passion points like food, family, Peruvian traditions, and more.
Relatively speaking, there are also significant differences, which is what we hope to address with our exclusive partnership with Grupo El Comercio. Due to the different brands that operate in Peru and those that operate in the United States, Grupo El Comercio will be able to deliver the right message from the right brands to the intended Hispanic audience via H Code.
Next Stop: Why Not the Whole Region?
Portada: What are H Code’s plans for the near future? What other markets are you looking to connect more with?
P.R.: In conclusion, we hope to continue to educate brands and publishers on the power behind a diverse audience. Especially the impact and influence of Hispanics in the United States. We continuously strive to maintain and grow our relationships with media partners in every Latin American country. Thus we ensure we reach every segment of U.S. Hispanics.
Papa John’s has appointed Rob Lynch as President and Chief Executive Officer, replacing Steve Ritchie. Lynch was previously President at Arby’s.
María Martínez-Guzmán has been promoted from the role of VP, News Gathering to Senior VP and Executive News Director at Univision News. Martínez-Guzmán will head programming for all daily Univision Networks newscasts, as well as Univision’sSunday morning political show.
John Donovan, CEO of AT&T ’s Communications segment, will step down from the role on Oct. 1. He previously served as Chief Technology Officer and Chief Strategy Officer.
MediaMath, an integrated demand-side platform and data management platform company, has named Konrad Gerszke President.
Walt Disney Co. has laid off nearly 60 people in its media distribution units after the company’s purchase of 21st Century Fox. Among those affected are Greg Drebin, Executive Vice President of Worldwide Marketing for 20th Century Fox Television Distribution, and Jennifer Chai, Senior Vice President of Worldwide Marketing and Strategy for 20th Century Fox Home Entertainment.