One of the greatest challenges of consumer data collection is the issue of privacy and consent. Today’s consumers are becoming more and more aware of how their information is collected, sold and used for marketing purposes. How can companies overcome privacy issues and harness this information to deepen consumer relationships? Luis Macin, Nestlé Mexico’s VP E-Commerce, talks about Nestlé’s plans to develop wearables for consumer metrics during Portada México 2019.
Interview conducted by Alejandra Velazquez
Problem Meet Solution
Data collection continues to dive deeper into the private lives of consumers and it is only natural that they feel their privacy is being invaded. Audiences find it unnerving when they mention something in conversation only to be offered that specific product online moments later. However, the great thing about wearables is the voluntary data collecting process. When users are nicely requested to share their data, it tackles the issue of consent and privacy. The consumer willingly welcomes a metrics device into the intimacy of their own home and even onto their own body and this is where the true power of wearables for consumer metrics comes into play.
Who Wears Wearables?
The implementation of these devices in Mexico will take off immediately
But once they’re wearing the device, how can brands collect specific data so they know how to target consumers?
The challenge is generating enough engagement so they’ll willingly share their information with you.
“There’s a driver behind every behavior, and each consumer has a different driver” says Macin. “You just have to identify their motivations and categorize them. For example, if your goal is physical performance, we’ll offer you the tools to have more endurance. If you’re concerned about your health, we can measure your BPM to protect your heart. The challenge is generating enough engagement so they’ll willingly share their information with you. You have to put the right cards upon the table, and the decision is theirs.”
Nestlé’s R&D is hard at work on e-health initiatives in Brazil, Latin America’s unofficial innovation hub. Monica Meale, Head of Nestlé Health Science LATAM told NutrIngredients “NHSc has strongly invested in digital innovation. In the last three years, the area increased its investments fivefold”. The company’s research focuses on developing market trends including e-commerce driven products and services, digital innovations (VR nutritional education videos as an example), virtual sign language assistants on websites and contests for Nestlé to collaborate with health startups in creating and designing health programs and activations.
Is Wearable Technology Expected To Drive E-Commerce?
Absolutely. As consumers receive custom-made specific information about their care, they will also receive specific recommendations and tailor-made nutrition plans that will drive e-commerce simply because it’s convenient. According to Luis Macin, Nestlé plans to offer users a holistic experience by incorporating themselves into the consumer’s lifestyle through wearable devices. And once they’re engaged in improving their health through the right diet and lifestyle suggestions – Nestlé’s product recommendations are only one click away. Ordering products will be as easy and embedded into their routine as their morning coffee. While we’re not quite at that level of e-commerce maturity yet but the focus on wearables for consumer metric collection and blending this with e-commerce opportunities is projected to be the next big frontier.
Once they’re engaged in improving their health through the right diet and lifestyle suggestions – Nestlé’s product recommendations are only one click away
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: Jill Leccia, Gatorade Sr. Director of PepsiCo Latin America Beverages, talked to Portada about the process of creating a global marketing campaign that’s also aware of consumer’s individual needs. Why it matters: Today it is more important than ever for brands to connect with consumers at a personal level while keeping local idiosyncrasies in mind but within a global context.
For young consumers and athletes, customization and personalization are becoming the main priority. They want their favorite brands to provide them with real-life experiences, and to feel unique but, at the same time, integrated to a global community of like-minded people. We talked to Jill Leccia, Director of PepsiCo Latin America Beverages, about Gatorade’s new marketing efforts, and the success of 5v5, a global soccer tournament for young athletes.
Check out the stars that will speak at Portada Miami on April 19, at the East hotel! They will discuss various topics related to the future of marketing and innovation in sports, to see Jill Leccia and our other speakers from up close, register now!
Portada: In a nutshell, what is Gatorade’s innovation strategy?
Jill Leccia: “First of all, we must continue doing what we do best: innovating to fuel athletes. We realize that customization and personalization is the next frontier of sports nutrition, so that will be the focus of all our new products and equipment. The strategy is to provide fueling recommendations specific to an individual athlete but in a global context. Right now we’re expanding our product offerings and seeking to make bottles and pods available to more professional teams of the NFL and NBA, and specifically the FC Barcelona.”
Portada: Tell us about your latest sports marketing venture aimed at young consumers.
JL: “We have an experiential program for young soccer players called Gatorade 5v5. It’s a tournament for players between 14 and 16 years old that fosters young talent while elevating their experience within this global sport. It started in Latin America in 2015, with the participation of six countries. By 2017, the number climbed to fifteen. In this year’s edition, we have 25 countries from Latin America, the US, and Europe, and for the very first time a women’s division.”
[We] celebrated the local champions to build an emotional connection with the national audience and a sense of patriotic pride before the global scale.
Portada: How was the process of personalizing a massive product like Gatorade for young consumers through media strategies on digital/social platforms?
JL: “First of all, we focused on telling the story of how Gatorade uses science-based beverages to help young athletes prove their skills on an international world tournament. The marketing campaign was based on getting individual contestants get involded through special and distinctive moments that highlighted both athletism and Gatorade’s strenghts. We divided the strategy into four phases. The first one used footage from 2016’s Soccer Stars to build hype around the local tournaments. Then, phase two presented and celebrated the local champions to build an emotional connection with the national audience and a sense of patriotic pride before the global scale. These stories gave mass awareness to the event.
In phase three we focused on the Global Finals in London. We had the tournament’s official draw hosted by ESPN’s UEFA Champions League talent and Gatorade’s senior management, and the local champions from our biggest markets were invited to the ESPN studios before the finals for a meet and greet and a TV special airing. And finally, in phase four we showed recaps and live updates of the Global Finals in London on social media, in which we highlighted the performance of the players and our product innovations and benefits while leveraging key partners and influencers.”
Jill Leccia, in conversation with Jan Gertis, Managing Director of Latam Transformation at OmniCom, Soccer in the U.S. and across Latin America, A look at the Future of the Beautiful Game, Portada Miami, East Hotel, 2:50pm.
SOCCER IN THE U.S. AND ACROSS LATIN AMERICA
A look at the Future of The Beautiful Game
Portada:What have you learned from previous editions of 5v5 that you’ll apply in the future?
JL: “We learned to follow up our teams and help them promote what they achieved on the Gatorade 5v5 tournament. That way, we can continue spreading their amazing stories of talent and effort and keep generating awareness for the tournament.”
Portada: How does the Gatorade lifestyle shown in marketing campaigns reflect upon its real-life consumers?
JL: “We think an experience like Gatorade 5v5 can also play a role in the lives of our general consumers because Gatorade is there to fuel all efforts, sweat, and talent.”
Portada: Do you have campaigns in support of local inclusion?
JL: “For example, in 2017, five NGOs focused on awareness and support of social inclusion in Argentina, Brazil, Colombia, Mexico, and Peru —some of the same ones as last year—. They received funding and support from Gatorade train and prepare a team to represent them on the field. As a part of the 2018 Gatorade 5v5 tournament, the Big Game campaign gave them 15 thousand dollars each.”
What: Marketing and technology is the focus of our talk with Circus marketing CEO Bruno Lambertini. He explained his priorities for marketing innovation and as a result how to survive through the digital revolution. Why it matters: The world of marketing and technology is changing at an accelerated pace. As a result, agencies like Circus Marketing are willing to take risks and invest in a smart way. They will survive in the new economy.
In the world of business, innovation means quite simply the process of translating a new idea into a service that consumers will buy. Thus creating value. Innovating is vital to every business. Without it, companies need not even try to survive. Circus Marketing is a multicultural digital agency with 8 offices in the U.S., and Spain. It has a presence in 5 Latin American countries, and was founded in 2005. Circus strives to create high-impact advertising campaigns that engage consumers to an emotional degree. Portada talked to CEO Bruno Lambertini to find out more about Circus utilizes different tools, but mainly data analysis, to drive innovation.
Portada: What are the key tools for marketing and technology according to Circus?
Bruno Lambertini: “Data combined with AI and Robotics, with a boost from 5G connectivity, is an explosive combo that opens a thousand opportunities in the world of marketing and communications. These are elements we’re exploring and experimenting with at Circus.”
Need for innovation
Portada: How does Circus Marketing understand the need for innovation?
B.L.: “Marketing innovation is not only about creative ideas. More than ever, clients today want to see ROI and demand effective campaigns. Every strategy of ours is based on deep knowledge of audiences through smart use of data. Not two days are the same at Circus, we never face a task the same way as the previous one, and that’s an essential part of the innovation process.
The only thing that really affects human behavior is a great idea that answers to data-driven consumer analysis. Ideas are the core of our business, as well as a neuralgic element of communication, but data provides context and new technologies boost distribution and impact on consumers. This combination is what makes innovation at Circus.”
Portada: How have marketing and technology changed in the last decade? What are Circus’ tools to address them?
A decade of change
B.L.: “The need for innovation has always been a part of communication and marketing’s DNA. In recent years, the industry has changed in an accelerated way, mostly because audiences have modified clients’ needs and expectations through new consuming habits. When we thought of ATL as ATL and we thought of digital as digital, many digital agencies were born, but they are also considered traditional today. Now, traditional ATL and traditional digital agencies need to innovate to survive.
Circus is an agency based on this new economy, it’s a hybrid model that takes the best of both worlds and adds data, tech-driven ideas, and content-generation tools in order to tackle new challenges. At Circus, the data and planning areas work closely together to generate actionable insights that favor creativity in order to generate an emotional connection with audiences, which translate to unique, powerful results.”
Portada: Competition is tough. What would you say are today’s most important values and skills in order to succeed as marketing and technology change?
A new economy
B.L.: “The companies that belong in the so-called ‘New Economy’ are the ones that are completely rethinking whole industries, and they have three things in common: 1) they base their business on the intelligent use of data and technology, 2) they use a collaborative work scheme, and 3) they have teams composed of diverse profiles, but always sharing the same mindset and allowing for disruptivity. Circus is a new economy agency because it has these three components, which are very attractive to brands and talent. The companies we work with, Netflix, Uber, Spotify, and WeWork, among others, show a communion of our culture and theirs.”
Portada: How does Circus make sure to reach its clients’ goals?
B. L.: “We combine our own in-house generated data with reports from various consulting agencies and information sources. Also, working with new economy organizations like Netflix, Uber, Spotify, and WeWork among others allows us to constantly update and Exchange disruptive ideas. Our goal in terms of client relationships is to build partnerships that include information mobility. They provide knowledge of the industry and we provide knowledge of this hybrid marketing/communication world, and about how the new economy Works. When we achieve this collaboration, that’s when we have executions that impact positively on campaigns’ ROI.”
Brands need to be willing to take risks.
Portada: What are the main obstacles to innovation?
B.L.: “There are many challenges, but let’s highlight two. One from the agencies side. And consequently one from the advertisers’ side, which can be found to a lesser or greater extent depending on the market. But at the end of the day they’re there. For agencies, the main challenge is investing in data. With all the transformations in the digital world, as well as in media consumption habits, investing in in-house data generation is a must to survive. Communication strategies need to be based on data analysis to generate impact effectively. On the other hand, brands need to be willing to take risks.”
Portada: In a nutshell, where do you see marketing and technology going in the next years?
B.L.: “The world is changing really fast. As a result, there is a revolution in the way we think about marketing. And this is caused by the smart interpretation of data together with artificial intelligence and robotics. This combination will allow us to be more precise and creative. As a result it will take us to places we can’t even imagine right now.”