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Volume 6, Issue 4

Digital Predictions for 2014

Innovations in Branding: Pedaling From Talking to Doing

Develop Great Creative for Your Video Ads and Maximize Viral Potential

BrandZ Top 50 Most Valuable Latin American Brands 2013

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POINTS OF VIEW

is “the set of associations— ideas. what are we really building? Our definition of a brand. a new variant. but because that occurs relatively rarely. (Our measurements were taken six months after the campaign started. the ability to creatively frame meaningful and different associations for the brand is the key to both short. While a message like “removes even the toughest stains at 30˚C” will drive short-term sales among consumers who find it relevant. MEASURE WHAT MATTERS It will always be important to measure an ad’s short-term potential as well as its short-term results. the specific message is not what most consumers will take away from the ad. and feelings—in the mind of an individual. But large established brands can and do succeed in generating short-term sales uplifts. short-term persuasion is the objective. With few exceptions. Journalist Rosie Baker.POINT OF VIEW Measuring Long-Term Ad Effects: A Meaningfully Different Approach At the recent Australian Effie Awards.” In this case. they will remember hearing something about stain-removing power. we know much more than we did two decades ago. That number is now falling. thus confirming that creativity is the common driver of both. and for keeping established brands salient. who found it worrying that there wasn’t any work worthy of a long-term award. The foundation for this framework is. the idea that impressions and associations accrue to brands over time. and a measurement of persuasion is a completely appropriate action standard. But by not looking longer term. Millward Brown understands brands and brand associations in the context of what we call the “Meaningfully Different Framework.” Baker’s observations are not dissonant with our own. We do this by showing people an ad and then. The responses to these questions are summarized in a new output called the Power Contribution. when viewed. it’s important to be clear about what short-term success can be expected and how it can best be measured. it is rarely sufficient. or a promotion—are capable of driving persuasion and are likely to be effective if the news is differentiating. Derived from the Awareness Index prediction and the persuasion score. We observed revenue growth that was 12 percent higher among those who endorsed the brand as being “easy to work with. not only for forming associations for new brands. after they’ve viewed it. though it is widely accepted that most advertising Creative Development daren. isn’t news for long. and quality. We know more about the role of advertising in this process. the payoff came in the medium term. “The one time nobody wants to take decisions about brands is while watching TV. There’s nothing wrong with measuring the potential of advertising to deliver short-term sales. Among the ads we tested during the global financial crisis. but also for strengthening and reinforcing existing associations. It is important for us to understand what this advertising imprint is likely to be. the STSL represents the probability of a short-term sales uplift. Brands are built over the long term. giving relatively more weight to the AI for larger and more established brands.poole@millwardbrown. that is much less likely to happen. asking them for words that describe the brand.) But. a new positioning. respondents may pay close attention and recall communication points verbatim. persuasion may be a relatively unimportant metric in many situations. It’s difficult to look long term when the axe falls after two poor quarters. . which is a measure of branded memorability. associations created by advertising can also have latent value when they enhance the brand in a consumer’s mind long before he or she has a reason to buy it. the Power Contribution is only a summary measure that indicates an ad’s potential to build equity. We know more about how brands grow and become successful. Brands are built over time. for some brands. They do this by creating highly engaging advertising that refreshes and renews existing brand associations. and recent modeling work done for a large B2B service company has documented the link between specific impressions created by an ad and subsequent brand revenue. which describes an ad’s potential to influence brand equity. But we estimate that only about 5 percent of total brand volume results from short-term ad effects. and it is a hard cycle to break. using tracking data and structural equation modeling. would not have an immediate effect on people’s intent to buy the brand.” So if advertising is going to build a brand. it won’t achieve long-term effects unless it is noticed and remembered. the industry is doing itself a disservice. or both. And many brands. ad assessments based primarily on the prediction of short-term effects may not always result in the best decisions being made for the brand. It doesn’t tell advertisers how that equity will be built—that is. stylish. To create the Power Contribution. particularly larger. rarely have real news to communicate. As advertising and research professionals. and more discriminating than either one. IT TAKES TiME TO BUiLD A BRAND Brands are not built in a day or a week or a month—or over the course of one marketing campaign.and longterm success. we saw an increase in the number that were aiming for short-term returns. because it is those associations that will ultimately motivate people to buy. One of our studies found that only 14 percent of campaigns were able to do that—and our observations are not different from those of other practitioners. the effect is reflected not in the persuasion score but in the Awareness Index prediction. the judges decided not to give an award in the Long-Term Effects category. we have repeatedly demonstrated the effect of advertising on key elements of brand equity. We now have questions in our Link ad evaluation system that predict the ability of an ad to build meaningful and different brand associations. the strongest brands have been around for years. as is word of mouth. it is never appropriate to look only at the short term. The result will be more balanced assessments of what an ad may contribute to the long-term health of a brand. We know this to be true. Figure 2: Advertising Imprint THE SHORT TERM: IT’S NOT ALL AbOUT PERSUASiON Advertising needs to be evaluated in relation to what it can accomplish for a brand. Ads that don’t have some immediate impact are unlikely to be successful in the long term. However. as Gordon Brown pointed out some 25 years ago. We need to evaluate advertising with this learning in mind. But later. even decades. The AI is used as a multiplier in recognition of the fact that no matter how well an ad conveys that a brand is meaningful and different. and salient are able to command a greater volume share or charge a premium price. of course. Persuasion is a helpful measure when ads contain real news. Gordon observed that many TV commercials.” he said. When this happens. more established ones. However. expensive. Short-term growth isn’t a guarantee of long-term success. Experience with the brand is particularly important. We summarize the responses in a word cloud. and so for most ads. even if you have it. when a consumer might be shopping and in the mood to try something different.com doesn’t pay for itself in the short term. While some form of short-term success is necessary. but when they watch the ads in a “natural” TV-viewing setting. Sometimes. which shows that the dominant associations for this ad were modern. wrote an opinion piece in which she said: “The pressure to deliver instant results means that people are hobbled in their ability to look long term. In a research situation. MEASURiNG THE BRAND-BUiLDiNG POTENTiAL OF ADVERTiSiNG Today. the impressions and associations established by an advertisement could come to the fore and influence brand choice. Thus it ensures that persuasion isn’t overemphasized when it is not highly relevant. Therefore. but we still encounter many advertisers who are primarily interested in DAREN POOLE understanding an ad’s short-term potential. memories. the effects of persuasion are often short-lived and do not always contribute to longerterm brand growth. This potential long-term advertising effect has not gotten enough attention in ad evaluation up until now. Therefore. It is the gist of the ad that is likely to leave an imprint. what specific associations will work to establish a brand as meaningful and different. But when we “build” a brand. But advertising is a critical factor. we are encouraging the use of the Short-Term Sales Likelihood (STSL) as a more appropriate measure of short-term potential. or effectiveness at low temperatures. sleek. the scores on meaning and difference are combined and multiplied by the brand’s predicted Awareness Index (AI). At the heart of the framework is our observation that brands people consider to be meaningful. We have found the Awareness Index to be a common factor in both short-term and long-term advertising success. Figure 1: Meaningfully Different Framework Share Many things besides advertising contribute to the formation of brand associations. which is shared by most in our industry. Look around. It takes brand size into account. it needs to build associations. and relevant to consumer needs. news. different. Therefore. credible. However. as shown in Figure 2. even Global Brand Director. Thus it is essential to understand this aspect of an ad’s performance. that is. Ads that feature news—of a new brand.” which is summarized in Figure 1.

However. Technology blogging communities—the same forums that offer purchase advice—have applauded Samsung for this action. let this be your call to action. convenience and environmental friendliness are all important to us too. How will you start moving from communicating to demonstrating and participating? . They are offering solutions Vice President. president of Samsung Mobile. Brands can provide creative solutions to these problems by transforming their marketing efforts from talking to doing. Efficiency. these brands are finding ways to insert themselves directly into OScAr YUAN people’s daily lives.” a sentiment likely shared by many consumers. forward-thinking marketer that understands and participates in the lives of its consumers. The “Real Beauty Sketches” video. These brands recognize that any successful marketing initiative must be built on a foundation of deep consumer understanding. and we are doing something about it. users can unlock a bike. you must give your solution a credibility test. Brand builders. Craft an innovative solution. “I have never paid much attention to Citi’s advertising.” Since its May launch. is measuring and valuing these initiatives. though. For Citi. launched in May 2013. Citi Bike was only launched last May. Citi has demonstrated that their concern for their customers goes beyond meeting their banking needs. Samsung. The multibillion-dollar financial giant (known derisively by some New Yorkers as “Sh*tty Bank”) has shelled out $41 million to sponsor the Citi Bike program. so Citi acknowledges that the exact ROI of the program has yet to be understood in terms of deposits. a brand that is part of their lives is more likely to get into their consideration sets.com purview of their product categories. to problems. And so we are observing a tectonic shift in marketing. Consumers have developed immunity to traditional marketing tactics—they fast-forward through TV commercials. but brands can also participate in people’s lives by offering less tangible forms of support.” Samsung’s sensitivity to people’s needs is likely to engender a warm regard for the brand that will catalyze future consideration. the Mall of America. and Citibank has championed a new solution. one Citi Bike user who has ridden more than 100 times told us. Whether you are creating a tangible service such as a bike-sharing system or helping people feel a little better about themselves. The film records a forensic sketch artist drawing two portraits of the same woman—one based on a description from the subject herself. Test for Credibility An initiative that lies outside of a brand’s product category still needs to bolster and support the attributes the brand wants to convey within its category context. This video. meaning “the world will never be the same. for almost a decade now. which both their product and the Sit or Squat app exist to provide. or does it contradict with other aspects of our positioning? Will people be able to make a mental connection between this initiative and our brand? DON’T JUST TALK—DO SOMETHING We all know the old cliché “Actions speak louder than words. They are effectively telling people. Dove’s Campaign for Real Beauty has been addressing the lack of confidence felt by most women in relation to their own attractiveness. according to Dove. By thinking more broadly—beyond their products and associated benefits—brands can take on more active and appreciated roles in the lives of consumers. mapping them out and displaying usergenerated reviews. known for its crowded subways. There is an ocean of unmet needs out there. or laptop. released this April as part of the campaign. surly cab drivers. along with other elements of the Campaign for Real Beauty. Conventional communications may help improve brand awareness and drive certain associations. it became the most watched video ad of all time just one month after its release. To help people facing this anxiety-inducing moment. Citi aptly identified sponsoring a bike share as a way to give consumers the ease and efficiency they wanted. Samsung understood that consumers feel empowered when they can stay connected. account openings. and pushy pedestrians. For example. New Yorkers have traveled more than 5. and a commercial certainly would not make me change my bank. Unsanitary bathrooms are designated as “squats. consumers’ feelings toward Citi have begun to shift. has revolutionized transportation for millions of New York City commuters. Citi understood consumers’ needs for convenience and efficiency. thereby positioning themselves favorably when purchase decisions are being made. They can build and strengthen consumer relationships by demonstrating that they understand people’s internal conflicts and tensions. and Test for credibility.POINT OF VIEW Innovations in Branding: Pedaling From Talking to Doing This is no time for branding as usual. captured in the acronym ACT: Assess people’s needs. the bicycles are more than just a new marketing initiative.” Already. Samsung’s initiative is rooted in a deep understanding of the needs and values of their customers.5 million miles on Citi-branded bikes. “The redesigned mobile phone charging stations ensure they stay connected on the road. if consumer buzz and sentiment are any indication. Samsung is also leading the charge—literally—by alleviating another consumer pain point: the flashing one-bar battery signal that indicates there are only a few minutes left on a phone. Ask yourself: Are we a reliable source to deliver this solution to consumers? Are we fit to provide this offering. For a low daily rate or an annual $95 membership fee. and the Las Vegas Convention Center with more than 500 free Samsung-branded universal charging stations. even problems that are beyond the Millward Brown Optimor oscar. 40 percent of Citi Bike users rated the program a 5.yuan@millwardbrown. For example. is not only impacting women and girls around the world. Invariably. think of three things. Engadget praised Samsung for “giving a nod to the little guy. The new bike-sharing system. They have set the company apart as an innovative. the other from a person who met the woman earlier that morning.” said Dale Sohn. In 2009. Charmin expanded the notion of its business from being a provider of toilet paper to being a provider of comfort and security. In creating this service. Assess People’s Needs First. Watch the ‘Dove Real Beauty Sketches’ commerical (Requires internet connection) up and make a true positive impact on consumers’ lives. as forward-thinking brands are opting to engage with consumers in new and unexpected ways. but when people are making purchase decisions. assess people’s needs and desires. Citi Bike is currently the largest bikesharing program in the United States. By doing this—by participating in people’s lives without attempting to sell them products—brands can sidestep that naturally skeptical response: “So really—what’s so special about your brand?” Instead. The video resonated deeply with consumers. and in an informal New York Magazine poll. LEArN TO ACT Marketers should not be dissuaded by thinking that all the winning ideas are taken. the principle is still the same.” While traditionally applied to people. let alone thrive. Instead of relying on traditional methods to tell people about themselves. These initiatives can and should transcend your product category. getting around town is a problem. Research what they care about and find solutions to problems that are not being addressed. One grateful individual told us: “Sit or Squat is one of my favorite go-to apps. While not the first program of its kind. and Charmin have all provided people with concrete solutions to logistical problems. Brainstorm how you can best serve consumers and improve their lives. Therefore. exposes the harsh and unforgiving judgments women make about their own looks. “Travelers rely on their phones every day to stay connected to work and their family or friends. the portrait produced from the latter description is much more flattering. and overlook outdoor displays as they attend to their smartphones. But now I would definitely look at them as a possibility in order to support them back for what they have done to change my life. and I love that Charmin has really acted on its mission rather than just telling people how it can improve their lives. Think not only about your product or category.” OTHEr BrANDS ArE JUMPING ON BOArD Citi isn’t the only brand finding innovative ways to help. they gain an opportunity to connect with consumers whose defenses have been lowered by the brands’ friendly and helpful overtures. but may also be inspiring other companies and brands to follow Dove’s lead. positive results are sure to follow.” while more acceptable ones are designated as “sits. A brand whose basic marketing strategy relies solely on conventional methods is unlikely to survive. If you’re considering such a transformation for your brand. this saying is increasingly being taken to heart by brands. ride to their destination. Even marketers in categories as basic as toilet paper are finding ways to participate in people’s lives. Brands need to step Share Brands can also strengthen consumer relationships by addressing people’s internal conflicts and tensions. in today’s crowded and competitive categories. even in ways outside of your traditional realm. Samsung has outfitted 13 major airports. The challenge going forward. CITI RIDES TO THE REScUE In New York City. “We understand that getting around the city can be tough.” DOVE’S BEAUTIFUL IMPAcT Citi. but also about people’s lives in general. block online ads. the diet company Jenny Craig recently made a widely publicized decision to drop celebrity spokespeople in their marketing. or credit card spend. Charmin has been flushed with positive buzz. People who ignore ads featuring fluffy dancing bears seem to notice Charmin’s innovative effort. In our research. Clean bathroom options can be scarce. and return the bike to any docking station. the Procter & Gamble brand Charmin launched the Sit or Squat smartphone application to help people find the nearest clean public restrooms. several college campuses.” Since the launch of Sit or Squat. tablet. Craft an Innovative Solution The next step is to craft solutions that address the needs you identified. of course. it has been mentioned on thousands of blogs and has garnered over 200 million total media impressions.

S. it’s something we see across the globe. and images of mythical horses rising out of the water. People pay attention to the unexpected. and High difference groups. speeding as they tried to show off to women walking by. like the famed Guinness “Surfer” ad from the UK. Second. Table 2 AI (Predicted) and Persuasion Scores for Different Ads. continue with a 15-second product demo. men want to be like him. then proceeded to talk frankly about menstrual cycles and feminine care products. The ad. Copy testing will help you understand if the bold efforts of your creative team are working as intended or if the risks they have taken are reckless ones. the brand has claimed a sizeable 7 percent share of the $2. The ad showed young male drivers. don’t lose sight of what your brand stands for. debunking myths. to just have advertising that’s different. plain-speaking approach. 2013 *Difference tertiles defined by endorsement of top box of Difference scale: “It’s very different from other ads in CATEGORY. involvement is consistently stronger for ads that are different. is credited with saving $264 million in accident-related costs and the lives of up to 56 people. The 2013 U by Kotex campaign. don’t be afraid to be bold. But they do need to keep an eye on what competitors are doing and be wary of and prepared for how to deal with imitation. First. behind a $2 million budget. But in their 2007 “Pinky” commercial. 2013 Degree of Fit with Brand Medium 5 19 3 7 24 High 15 *Fit tertiles defined by endorsement of top box of Brand Fit scale: “How well does the ad fit in with how you think of BRAND?” One brand that has successfully leveraged appropriately different advertising time and time again is Apple. the more likely it is to be remembered. consider the strength of your brand and current advertising. Sales of Dos Equis doubled in the four years following the launch. So when your goal is to create advertising that will really get noticed. least of all when it comes to multimillion-dollar brands. Indexed on Average Level of Difference* Bottom Tertile Top Tertile Brazil China France Russia Germany United Kingdom United States 78 85 73 82 96 93 88 104 109 121 122 124 126 150 Source: Millward Brown. The elements that make them different can become strong brand cues. But this isn’t just the case in the United States. In its first U. ads that are seen as different from other advertising have significantly higher levels of involvement. As a result of this straightforward. Nobody wants to be the marketer that messes up a multimillion-dollar brand.S. or high degree of fit with their brands. I know that’s a message I would listen to! More importantly. Ads) 4 5 3 Low Medium High Difference Tertiles (defined as on Table 1) Established Brands Can Also Be Different New or little-known brands have an advantage when it comes to creating different advertising as they have little to lose and few existing consumers to alienate. it’s a message that stood out to drivers because it was so different from what they expected to hear. (Incidentally. like Kmart’s “Ship My Pants” TV spot from early 2013. offering people something enjoyable is a good way to get their attention. Dos Equis launched a campaign built around the exploits of the rugged yet sophisticated “Most Interesting Man in the World.S. which played up the “sounds-like” pun of “Ship My Pants” and garnered 13 million views on YouTube in its first week. In today’s world. keep in mind that what you think of as a big change may be too subtle for consumers to notice. In 2004. As Table 1 shows for countries around the world. They may be laugh-out-loud funny. phrases like “he can speak Russian … in French” and “his blood smells like cologne” are readily associated with the brand. understand how consumers view advertising for your category. Table 1 Ads That Are Different Are More Involving Involvement Scores.” a pair of creepy. in fact. we observe that in the United States. In the case of Dos Equis. and it’s ads that capture attention that have a chance to be remembered. what makes them different often enhances them in other ways as well. Third. edgy. We measure this using our Awareness Index (AI).” The campaign. All of Apple’s advertising conveys the message that the advertised product will help you do the things you love to do—and this. and to deliver messages. The campaign was pulled within the year amidst declining sales and negative reactions from customers and franchisees alike. the brand’s iPod campaign from 2003 fits just as well with the brand as their 2013 advertising for the iPhone 5C. Strong category leaders with successful campaigns shouldn’t focus on creating something different if what they’re doing is already working. pushes boundaries even further. Make sure they understand your brand’s heritage and consumers’ perceptions of your category and then turn them loose. a medium we look to for entertainment. has also leveraged different advertising to great success. which featured non sequiturs and visual humor. Senior Business Analyst. and the campaign has since won numerous awards. BREAK THE MOLd … WITH CARE Breaking the mold isn’t something that should be considered lightly or done haphazardly. Australia’s RTA did something different. Figure 1 — Awareness Index (Predicted) Increases with Difference (4. to convey brand impressions. such as the grainy black-and-white footage of him arm wrestling Fidel Castro.926 U. Don’t put narrow boundaries on what they can and can’t do. That was certainly different. But often. the ads were unlike anything else in the beer category.6 billion feminine care category after only three years. the more enjoyable an ad is.” Replacing the traditional frat boy jokes with over-the-top but not quite unbelievable snapshots of the most interesting man’s life. full of swagger. a pulsing drumbeat. In general.S. the women wagged their pinkies to suggest that the drivers were overcompensating for a lack of manhood. As we’ve seen. which targeted women aged 14 to 22. Therefore. They may be edgy. According to Degree of Fit* 4.” an aspirational figure for young beer drinkers who embodied the phrase “women want to be with him. Medium. Many advertisers develop effective formulas that they depend on for years. Or they may be gripping. Instead of trying to mimic the success of category leaders. Safe-driving advertising across the world has traditionally used scare tactics to frighten consumers into following traffic laws. Ads Low AI Persuasion Source: Millward Brown. U by Kotex. maybe in slow motion. is the meaningful difference that makes Apple so successful. ads that are different are most likely to build brands. the qualities of ads that are different—being laugh-out-loud funny. Dare to throw out every convention you know about advertising in your category. make sure you build on its legacy and its meaningful difference. But that doesn’t mean it’s impossible for established brands to create advertising that’s different or that they shouldn’t aim to do so. That must be why I’ve often heard from clients that there is a certain way to advertise in their category—for example. . in which the drama of surfers riding an enormous wave is enhanced by black-and-white footage. Advertising in this category has traditionally relied on euphemistic images of young women riding horses and performing gymnastics routines.POINT OF VIEW Dare to Be Different Being different is scary. but it wasn’t appealing. but the way you present that demo can be different.com DIFFERENCE MAKES A DIFFERENCE When the Dos Equis Most Interesting Man campaign in the United States launched in 2006. or gripping—are the same qualities we observe in ads that go viral. relying on what has worked before or for others. Table 2 shows the predicted Awareness Index and Persuasion scores for “different” ads that have a low. Lastly. As a result. and involvement are best at generating TV ad awareness for their brands. the reality of menstruation is not openly discussed. In marketing. THE DIFFERENCE mUST FIT THE bRANd It’s not enough.hernandez-brun@millwardbrown. Often they included both. Different for the sake of being different doesn’t work. such as the ads in the Old Spice The Man Your Man Could Smell Like campaign. Unless you’re trying to completely reinvent your brand. A great example of an established brand leveraging different advertising is the “Pinky” ad from Australia for the New South Wales Roads and Traffic Authority (RTA). enjoyability. and end with a 5-second joke. Millward Brown ALEX HERNANdEZ-BRUN But copying from a template often leads to mediocrity. spot. most beer ads featured attractive women being won over by feckless young men (with the help of beer) or relied on sophomoric humor. it’s ads that are different that stand out and really capture attention. They captured viewers’ attention and made them remember the brand. It’s ads that are different yet still fit with their brands—ads that are appropriately different—that are much more impactful in market. give your creative team some freedom.S.” Difference Creates Enjoyment In the context of TV. copying someone else’s template hinders as much as it helps. And we have found that ads that are different also tend to be more enjoyable to watch. speaking matter-of-factly about menstruation. however. google-eyed hamster mutants singing about Quiznos’ toasted subs. Make sure you also understand your market and the type of advertising you can get away with without offending consumers. a feminine care brand launched in the United States in 2010. medium. Link will show the positive impact of difference—but it will also act as an early warning system if that difference is inappropriate. including a 2009 Gold Effie and a 2010 Bronze Cannes Lion.” they say.926 U. Maybe a product demo is required. and I do it in my white spandex. which is constantly changing. the U. As a former young male driver full of swagger. Figure 1 shows the predicted AIs for 4926 U. Difference Is Involving Looking beyond these two examples. Dare to be different. dare to break the mold. We have found that ads that combine strong branding. Also. Share alex.) Difference Builds Memorability and Effectiveness Beyond being more involving and more enjoyable to watch. Unimpressed. Thus they have a stronger ability to get noticed by consumers. called Generation Know. sandwich restaurant Quiznos started a TV campaign featuring the “Spongmonkeys. “This is how we must advertise in order to succeed. U by Kotex parodied these ads in a young woman’s description of how her period makes her feel. TV ads for men’s razors must start with a 10-second story. trying something different is really scary. Apple focuses on delivering an outstanding brand experience. “It makes me feel really pure … I like to twirl. ads in the Low. While competitive advertising focuses on technology. and addressing questions many young women have. ads that are different can offer another important advantage. and it did nothing to make consumers want to go to Quiznos. It’s easier to play it safe.

PUBLISHED ARTICLES .

Millward Brown I t has become a mantra that cognitive science is challenging the assumptions of our industry. effortless decisions that they are wired to favour. These suggest that we think less than we believe we do and only engage our more effortful (slow) processes when necessary. when automatic responses to brands are modelled against behaviour. 2. Millward Brown has introduced questions that focus on brand and advertising gist rather than detail for just this reason. they cannot help but be swayed by their automatic reactions. In the case of budget airlines. we should be clearer about our established metrics. intuitive reactions to carriers were shown to have very little relationship with behaviour. unless people engage in effortful thought. That’s something to build on. It is. if the 95 per cent figure were true. because the evidence is that many brands lack the instant meaning that would allow consumers to make quick. We need to remember that even if respondents are trying to focus on functional or factual information. By taking a more measured view of the science and integrating the tools to isolate fast thinking directly. so understanding if people can construct those ideas for the brand when they think about it has value in measuring progress towards those goals. What they show is that many brands evoke modest emotional responses (typically neutral or mildly positive) and just a handful of ideas or responses. personalities. there and then. By including both. but not necessarily in the way people assume. few in the research or marketing industry have ever believed in a dispassionate consumer. or will work better on a particular dimension? This perspective has important implications for research: 1. An often-cited ‘fact’ is that ‘95 per cent of what the brain does is unconscious’. Do those ideas mean the brand has a particular personality. • Automated facial coding of viewers’ responses to advertising (used on more than 2. The fact that many brands lack a deep meaning for consumers also has implications for research. This is still valuable – if people don’t register the intended brand meaning or advertising message when they think about it. For a low-risk choice like social media usage. Marketers should strive to give brands instant meaning. • Reaction time-based measures of intuitive associations. so we can properly understand the nature and impact of brands’ automatic associations. much of that is involved in biological regulation and low-level sensory processing – which is not the same as decision-making. that it’s there to dig beneath the surface to reveal the rich. Research questions are likely to be much more nuanced than the associations consumers have in their minds. These findings are consistent with the cognitive science that sparked the whole discussion. 3. archetypes and so on are valuable aspirations for a business to rally around in marketing a brand. It is the gist of a brand that counts for fast decisions. www. Furthermore. which enable us to understand whether brands have the real-world meaning their owners intend. With facial coding. We now have such tools. but provide more realistic brand guidance. In addition. Where possible we will use our fast processes for decisionmaking. There is a tacit assumption in the industry evidenced by ideas such as the iceberg metaphor. then they certainly won’t in the real world. Share The typical story is that breakthroughs in behavioural economics. the figure is a hypothetical construct. subconscious world of brands. There are two problems with this. Executive Vice-President. and Millward Brown has deployed them on hundreds of projects. but our slower processes can and do override them when we are motivated to do so or when our instinctive responses are vague or muted. neuroscience and the study of heuristics have debunked the idea of the ‘rational’ consumer. but only to the same degree as explicit attitudes. This is the nub of the challenge for brands. Most research methods encourage people to reflect on their faint brand associations and to see what they can build from them. The core of the science on ‘fast’ and ‘slow’ thinking is that both contribute to decision-making. First published in the October. the degree of influence is way below the 95 per cent we’d expect if that proportion of decision-making were driven by unconscious processes.marketingweek. so looking across metrics at the gist of the answers will give a more meaningful insight than worrying about whether people differentiated between minutiae like ‘tastes delicious’ and ‘has a satisfying taste’.Ninety-Five Per Cent Wrong RESEARCHING THE INSTANT MEANING OF BRANDS YIELDS A DIFFERENT PICTURE OF CONSUMER CHOICE By Graham Page. and a key objective for brand managers is to create not just rich brand equity.com . brand values. For a start. intuitive responses to brands such as Twitter did show a significant relationship with behaviour. and as brand and ad researchers. This makes them vulnerable to competitors that do create an instantly relevant and positive meaning. the idea that 95 per cent of brand decision-making is unconscious is every bit as wrong as the idea of an objective consumer. Similarly. Firstly. nonconscious processes directly. as people were more willing to override their instinctive responses for the sake of a good deal. Many research questions encourage more effortful thought than people will commit in reality when making brand decisions. We need to focus more on gist. we can not only understand the true influence of fast thinking. and Millward Brown’s own work routinely includes: • Measures of the instinctive emotional responses that will frame real-world decisions. We need to complement established measures with approaches that isolate the instant meaning of brands and campaigns. Integrating reflective thought and measures of instant meaning is key.500 ads by Millward Brown at the time of writing). In the Twitter example. we can improve the ability of Link survey measures to predict ad sales effectiveness by up to 30 per cent. which often measure what brands might be if people think about them. Fortunately the industry is now adopting such measures extensively. 2013 edition of Marketing Week. implying that 95 per cent of brand decision-making is unconscious. but equity that is immediately accessible. with fast processes such as instinctive emotional reactions framing the slower ones. Similarly. A better metaphor is that of construction. It is impossible to find scientific papers that evidence this number and while it is true that a huge amount of the brain’s energy consumption is spent on processes below our awareness. measuring fast responses enabled us to improve our prediction of behaviour by 50 per cent. then when we measure brands using research tools that tap automatic. we would see a seething mass of associations and responses. we can empirically determine the importance of each.

We learned the sender of a viral ad often needs to be sure the recipient will laugh when they see it. these films operate on the edge of social acceptability. we took measures from Millward Brown’s Link copy testing solutions to build a Creative Viral Potential score. rather than enhance. re-edits and other online chatter. Active Involvement: Viral ads are not those that simply “wash over” the viewer . summarized below. Distinctiveness: Being distinctive is very important. Advertisers can only control the name of the “official” versions of their videos. using the acronym LEGS. • Paid media in general has a role in viral success. The name attached to an ad will contribute to it being easy or difficult to find. you start to lose control of the campaign. because the brand has no control over its longevity in the public eye. Buzz: The quality of an ad makes someone want to send the ad to someone else. Not many would claim to “enjoy” looking at a car crash. and later in “fanning the flames” to ensure wider awareness. the number of views (aggregated across all posted versions of an ad) was divided by the number of weeks the ad had been posted. but with luck. but they should consider the implications of how they do this. very passive videos can be extremely enjoyable. Laugh out loud funny: Four of the top five videos we researched overindexed in terms of being funny. ads need to stand out from all other ads. Client Solutions and Innovation. Millward Brown T he strength of creative is an important factor that will influence whether an ad will go viral. • Ads on YouTube’s home page generate 86% of all views increasing expected views by over 600%. Share First published October. An ill-advised film can damage brand equity. A semi-pornographic film for many brands would detract from. Here’s what we learned. both positive and negative emotions can drive a consumer to be gripped by a video. Generating a wry smile is not sufficient for a video to be sent on. or unpleasant. In the study. Edgy: Best described as the type of video most people wouldn’t show to their mother. at cinemas or in paid online video slots.” Before embarking on a viral video project. shocking. The act of passing an ad on contains a consequential element — personal endorsement. Finally it should be acknowledged that. • Holistic campaigns are more likely to achieve viral success. the chance of achieving a major viral success is rather low. The likelihood of this is gauged against the sender’s own reaction to the video. PR can have a major impact. across seven countries. To identify the creative criteria for viral success. first in seeing the ad appropriately among opinion formers. not just from those of direct competitors.only the very best start to catch up via natural viral. An intriguing name may help drive views among random surfers.they tend to have qualities that make the viewer lean in and take an active role. Sexual content: We chose not to include any particularly sexually focused films in the research due to common decency and industry codes of conduct. To help predict in-market viral viewing. if it goes viral. Working with leading marketers and agencies on Creative Development. Other media such as posters or print can play a supporting role as well. you could benefit from a massive viral surge in brand interest. There is a growing trend for brand managers to suggest or request a viral campaign because “everyone else is doing it. Some campaigns will inspire mash-ups. Media choice should always be driven by the communication objective. To create a “views per week measure”. We used YouTube’s publicly available viewing information as our measure of viral success. the brand promise and position. Gripping: Finding a video to be gripping. Millward Brown recently conducted a research study on the power of viral video ads. and what makes people want to share? In reality. So what creative factors drive viral viewing? Millward Brown identified the following measures that related to views per week: Enjoyment: The industry can consistently demonstrate the importance of liking and/or enjoyment to an ad’s performance.Develop Great Creative for Your Video Ads and Maximize Viral Potential By Ann Green. using our Link™ solution.com . While very gripping videos are not necessarily particularly enjoyable. The research shows there is no guarantee a video that is very gripping will be forwarded on . YouTube videos with paid advertising achieve far greater views than videos that are not supported by paid placements. We identified 500 ads copy tested. Importantly. sick. engaging or involving isn’t the same as enjoying the viewing experience. when they combine this edginess with humor. the sender is saying that he or she thinks it’s good. The pursuit of an edgy or sexually focused viral video should not be detrimental to a brand’s character or proposition. spoof responses. However. despite the analysis presented above. YouTube promotion ensures weaker ads achieve views . To succeed virally. This measure of viral spread ensured a fair comparison regardless of how long the ads had been on YouTube. and not the other way around. but the majority of people rubberneck when they pass an accident site. The ad itself may have appeared on TV. They might be viewed by some as offensive. Importantly however. the shock element is felt overall to be funny as opposed to gratuitous. marketers need to ask the question: Would the film work on TV or in the cinema? If the answer is “no”.but a video that isn’t gripping is unlikely to be passed along. At this point. Sending a bad viral ad is rather like telling a joke that falls flat — embarrassing for all involved. There are many factors that determine an ad’s viral impact. This also holds true when it comes to whether or not an ad is likely to go viral. but a more obvious name may help increase views among searchers. and things may take unexpected twists and turns. there is still an element of luck involved. Executions that are linked by a common theme or device seem to benefit from being part of a campaign. that is not to say we underestimate the importance of sexual content as a motivator for forwarding a video — particularly among young males. 2013 www. Millward Brown is often asked to help predict the extent to which their ad will go viral.millwardbrown. the ad won’t fit any better when it’s watched on a PC or mobile device. • Make your video easy to find. Millward Brown set out to explore the main drivers of viral viewing. All ads were also available on YouTube. Millward Brown’s research also identified four elements of strong viral ads. Senior Partner. In sending a viral ad along.

with its retail and product experience being emulated. which has made it intensely exciting to explore the capabilities of the iPhone 5s…We’re inspired by what this could mean for the future as we continue to explore the merging of physical and digital experiences. Apple partnered with Burberry to launch the iPhone 5s at a Burberry fashion show. copycat competitors. From the funky brand identity of Beats headphones to new. Burberry’s Chief Creative Officer and second in command to Ahrendts. in a 2010 profile in The Wall Street Journal Magazine she remarked. Apple has already led the way with projects like the Nike Fuelband. 2013 edition of Wired. They’re a brilliant design company working to create a lifestyle. In an increasingly competitive and imitative market. in fact. Share First published in the October 18. Millward Brown Optimor F rom Google Glass to connected watches. and expand accessibility to a wider variety of markets — all while maintaining a premium perception. the decision to bring Ahrendts aboard. “This collaboration celebrates our relationship and shared foundation in design and craftsmanship.” Ahrendts noted the similarities between Apple and Burberry earlier. through more selective use of the pattern and a carefully cultivated in-store experience. technical specifications to what the fashion houses understand: the most intense relationships are built on passion and emotion — lust. Ahrendts is familiar with reenergizing brands and enhancing their premium potential.wired. it is clear that in her new position the apple will not have fallen far from the tree. formerly of Levi’s. nearly science-fiction innovations in fabric and design that cross fashion runways around the world. “If I look to any company as a model. Certainly.From Tartan to Tablets: Apple Stores Hire Further Blurs Lines Between Fashion. commented. could signal an intent to grow the Apple brand in a way more similar to the great houses of fashion than to the great houses of Silicon Valley model — shifting consumer choices from rational. Coming from a remarkably successful tenure as the CEO of Burberry. however. Barely a month ago. Tech By Oscar Yuan.com . Ahrendts brings valuable luxury fashion brand perspective and experience to the challenges faced by Apple. Other brands are following suit. she turned around perceptions of the brand’s classic plaid from tired and tacky to a chic and luxurious fashion statement. But Ahrendts’ new role is hardly the first move Apple has made in blurring the lines between fashion and technology. Her adept use of social media and digital marketing transformed Burberry into the most connected fashion brand in the world.” And while many Silicon Valley analysts are surprised by Ahrendts’ appointment. and all photos were taken with the new iSight camera. when. www. if anyone is going be the vanguard of changing our daily interactions with technology. what we wear in our everyday lives will increasingly be combined with the technology we use. and at lower price points. combined with Apple’s earlier hire of Paul Deneve of Yves Saint Laurent and Enrique Atienza. This week. it’s Apple. Outside of simply growing sales. even — not rational benefits. Christopher Bailey. an achievement that so far as eluded Apple. it’s Apple. sales at Burberry more than tripled and share price quadrupled. which merged Apple’s smart technology with a wearable and functional workout tool. Ahrendts also drove great success for Burberry in China. Apple added to this dialog when they named Angela Ahrendts to senior vice president of retail and online stores. there’s been a lot of conversation about the merging worlds of fashion and technology. and that’s the way I see [Burberry]. We have a mutual passion for creating beautiful products and unlocking emotive experience through technology. Vice President. Apple is seeking to differentiate from cheaper. from a brand perspective. While at Burberry. Under Ahrendts’ seven year reign. to clothing that monitors your activity levels.

2013 edition of Research-Live. Individual areas have also taken on their own unique sense of style and identity. “It has been a tremendously successful campaign which supports the importance placed on ‘old-fashioned’ values and interactions by young people. “Brands can do this in different ways – Coca Cola’s ‘Share A Coke’ campaign this summer is a brilliant example of bringing young people together. and they understand more than ever that success in their careers and life comes only from hard work. there is also a longing for oldfashioned values. www. and take advantage of the socalled “Olympic effect” among young people today? Share 1. according to Anne Collins. In the build-up to the World Cup in 2014 the global unity and connections young people desire represents a significant opportunity for marketers who target young people. commitment and a positive attitude in today’s highly competitive global market. capitalising on its sponsorship of the Olympics. Adidas has managed to do this well. choosing young. First published in the Novemeber 13. and those that best reflect their needs and aspirations will reap rewards in the future. its collaboration with designer of the moment Stella McCartney. Marketers can benefit from having a strong focus on the ‘experiential’. and made a lasting impression.” 3. They want success at work. research director at Firefly Millward Brown: “Marketers need to capitalise on these emerging post-recession values.research-live. This represents an opportunity for brands in terms of alignment with places or physical areas.” 2. O2 has recently created physical workshop spaces in-store where young people can meet. writes Firefly Millward Brown So how can marketers and brand managers capitalise on this newfound sense of optimism.Five Tips to Help Take Advantage of the “Olympic Effect” Young people believe the Olympics added a new dimension of friendliness. and understand they can be enriched by learning about and experiencing different cultures. Their liberal stance was highlighted at the time of the Olympics last year where they enjoyed the coming together of different people and nationalities to support teams and celebrate sporting achievement.” says Collins. in London and its iconic landmarks. There’s a palpable hunger to achieve amongst this generation that was never as strident with Generation Y. Adidas raised its game. hope and sense of community in London. Brands must get to know young people better. and pride. different nationalities. and giving them a way to show love. rising. and personal ambition extends beyond London and the UK. “One example of this is O2. 4. THE PHYSICAL VS. care and respect for family and friends. A mORE LIbERAL APPROACH Young people are far more liberal than their parents’ generation. and to gain a diverse range of life experiences along the way. tHE DIGItAL Emphasis on the ‘physical place’ rather than the ‘digital space’ is becoming more important for young people. mutual respect and belonging highlighted during the Olympics. OLD-fASHIONED VALUES In this complex digital world. and desire more of the ‘physical’ in their lives today. and various initiatives aimed at young people with passion at the core reaped great results. 5. This attitude was highlighted at the Olympics last year. sporting personalities as ambassadors.” says Collins. Following in the footsteps of Apple. There is potential for this new positive stance to be used as a big idea by marketers. POSItIVE mENtAL AttItUDE Young people are more ambitious than ever. They embrace diversity.com . They are born into ‘globalisation’. these forward-thinking technology brands who are visionaries for the ‘digital future’ also know the importance of ‘keeping it real’ for the young adults. people and places. The report suggests that there is a strong affection for. its global credentials and ‘cool’ factor at the same time. closeness. FRAmE Of REfERENCE Young people’s frames of reference have been extended. like energetic Brixton and the hipster vibe of East London. learn or lounge. as part of their multimedia-campaigns. opportunity. Young people appreciate the sociability.

KNOWLEDGE POINTS .

for example. The client went ahead and filmed and aired versions without celebrities. whereas in the U. Halifax bank used staff members in its ads — one of whom. But the celebrity needs to come across as likeable and genuine. China makes the greatest use of international celebrities in Asia. The presence of a (much liked) celebrity made a slight difference to the first ad. In Japan. YOU NEED TO ESTABLISH WHETHER THEY ARE KNOWN. communication. AMONG YOUR TARGET AUDIENCE. improving its enjoyment and impact. for example. In the UK. the split between local v international celebrities is closer to 50:50 (probably because U. and it communicated the intended messages. in the versions with the celebrities. WHETHER THEY ARE LIKED. But we also explored their personalities. they are no more persuasive than other ads. an animated character. CAN UNDOUBTEDLY BE A POWERFUL BRAND ASSET. but drops to 10 percent in Africa.. featuring popular movie actors. The celebrity was considered inappropriate. When the celebrity is perceived to be appropriate. this drops to 12 percent in Latin America. Perceptions of Liu Xiang in China 20 18 16 Average ‘Dishonest’ . “Celebrity Power: Can Less Be More?”. but had apparently disguised an injury. It was hugely enjoyed and well recalled. AND THERE ARE PITFALLS TO USING CELEBRITIES. One automotive client in India came to us asking for advice on the right celebrity to use to represent the brand values and aspirations. celebrities are human. AND WHAT THEY STAND FOR.42 20 2. one client had used a celebrity in some of its ads over a ten year period.43 (99) 15 9 6 3. Are they liked? While it isn’t essential for a celebrity to be liked. But experience suggests that this is more an issue of ad structure than the fame of the celebrity. In the UK. as the example below shows. Carina Lau and the cosmetic brand SK-II in China. So there are a number of ways in which a celebrity could become a liability to the brand. a lipstick brand was launched using a British model.S.37 A snack food client in Turkey wanted to explore whether to use celebrities in their campaign. In Asia Pacific.KNOWLEDGE POINT What Are the Benefits of Celebrity-Based Campaigns? CELEBRITIES ARE USED IN ADVERTISING AROUND THE WORLD. Nescafé’s Gold Blend coffee campaign of the 1990s created a long running series. rather than the brand. making ‘celebrities’ of fictional characters. relevant. Barclaycard’s share of new cardholders rose from 15 percent to 25 percent in five years. branding scores are slightly lower for ads with celebrities — possibly due to the celebrities endorsing too many brands. Those who recognized the celebrity expressed stronger purchase intent Recognized Didn’t recognize Definitely would buy / probably would buy for the price of $4. the versions without celebrities were just as impactful. particularly in tertiary cities. Howard Brown. In particular the likability of the celebrity needs to be assessed among the target audience. both with and without celebrities. The research showed that. as this comparison of U. a scene which was found disturbing and uncomfortable. and subject to human failings. Gary Lineker and Walkers in the UK. celebrities are more likely to be internationally known).313) Involvement: 53 (8468) 49 (48. THERE’S VERY LITTLE DIFFERENCE BETWEEN THE PERFORMANCE OF ADS WITH CELEBRITIES VERSUS THOSE WITHOUT. It is also apparent that in Asia. but in others. Also in the UK. particular celebrities have. the message takeout was weaker. Our analysis showed that the ads featuring the celebrity performed better on key measures than those without the celebrity.S. in animatic form. They had identical scripts. there is very little difference overall between the performance on most key measures of ads with celebrities versus those without.S. become synonymous with the brand: for example. and researched two ads with us. two versions of the ads. There is no consistent pattern by category on use of celebrity in ads % of total ads Personal Care Drink Food Telecommunications Appliances Apparel Technology Household Automobiles Medical 1 UK 14 12 10 8 7 7 7 6 6 4 2 10 11 4 16 11 32 9 10 18 11 7 24 46 USA 14 14 23 CHINA 32 52 The type of celebrity used varies a lot by region.. he was dismissed by the younger target respondents as being too old and old fashioned. the celebrity may just be a poor choice. and still hasn’t fully recovered. with their clear focus on the brand. communication can be enhanced.S. what are the guidelines for getting it right? We’d suggest there are three key questions you need to answer. there is virtually no difference in performance between ads featuring local or international celebrities. advertising can make celebrities. this can have a significant impact on emotional response to an ad. or with where you want to take the brand. TO GAUGE WHETHER A CELEBRITY IS RIGHT FOR YOUR BRAND. Some countries. OVERALL. Overall. and wanted to know if they should continue the relationship. for some long running campaigns. became a celebrity in his own right. The ad was not progressed. the client continued the relationship. Conversely.864) Finished Films However. We were able to estimate that the celebrity was worth over $5 million per year to the client. The Chinese athlete Liu Xiang was in the London Olympics. following the slow build of a romance. There may be merits to running a campaign which works even if the celebrity is not recognized.S. and Canada. The celebrity had also become a strong branding device. around half of ads featuring celebrities use film stars. and lowest in Ukraine. there is the risk of the celebrity becoming the hero of the ad. ARE THEY EFFECTIVE? Celebrity-based campaigns can be very effective. but it is useful to be clear how important the celebrity is in your campaign. which were most popular on Twitter and Facebook.274) Branding: 53 (7178) 50 (37.60 (>278 ads) . Likeability of a celebrity can significantly impact on emotional response Like celebrity % Enjoy a lot Enjoyment of ad Quite enjoy 13 34 Don’t like celebrity % N/A 6 48 Won’t mind 38 29 Won’t enjoy much Won’t enjoy at all Mean score: (+5 to +1) 11 4 3.77 (108) 10 9 3. A new campaign was developed for a tea brand in India. BUT USING A CELEBRITY IS NO GUARANTEE OF EFFECTIVE ADVERTISING. less than a quarter of the audience recognized her. tend not to suffer this problem. One particular TV and radio presenter was rated highly. while foreign celebrities lack familiarity.S. In the U. These are discussed in our Point of View paper. both versions performed poorly. In the UK. this is not the case. The celebrity weakened credibility What was put across about the brand was believable With celebrity % Agree Strongly 27 Without celebrity % 27 UK average % 26 Agree slightly 28 44 36 19 Neither/nor Disagree slightly Disagree strongly Mean score: (+5 to +1) Base: 16 14 13 3. What do they represent? You also need to understand how well the celebrity fits with the brand. and 12 percent in the UK. Testimonial ads. particularly where celebrity ads are more common. THREE KEY QUESTIONS FOR EFFECTIVE USE OF CELEBRITIES Given that using a celebrity does not guarantee a successful campaign.. We explored which celebrities were best known across India. or the endorsement may lack credibility. It’s highest in Japan and Korea. but the celebrity in the second ad was found pretentious and arrogant. while the other featured an actor playing the part of an old pop star. Chile. so. Celebrities make very little difference overall on most key measures Average global percentiles Ads with Celebrities Ads without Celebrities Enjoyment: 56 (7407) 54 (39. When the couple first kissed.Liu Xiang 14 12 10 8 6 4 2 London Olympics 2012 0 Ap 2 r1 2 M ay 12 Ju n 12 Ju l1 Au 2 g 12 Se p 1 O 2 ct 1 Ja 3 n 1 Fe 3 b 1 M 3 ar 1 Ap 3 r1 M 3 ay 13 Ju n 13 ar 1 M Data Source: Millward Brown CelebrityZ 2012-2013 Personality Results In addition. notably the U. severely limiting the effectiveness of the campaign. find celebrity ads more involving. When we researched an animatic version of an ad for the brand featuring him. it made the front page of The Sun. and how many brands they already endorsed. William Shatner and Priceline in the U. Among those who recognized her. and weakened the credibility of the ad. And while the celebrities were intended to help gain attention. local celebrities are far more likely to be used. Since the contract cost considerably less than this. WHO USES CELEBRITIES? Share The use of celebrities in advertising varies enormously around the world. however. THE RIGHT CELEBRITY. they are more likely to be viewed as different and as trend-setters. over time. the celebrities were ‘drowning out’ the communication. to establish which was the best fit with the brand. POTENTIAL PITFALLS Unlike. The ‘right fit’ celebrity can enhance communication Find celebrity Don’t find celebrity Difference appropriate % appropriate % Are made from natural products Suitable for the whole family Ideal for everyday meals Are new and different Create tasty meals without effort Are high quality Combination of different textures Taste great/delicious Moving with the times 79 68 61 61 60 56 51 42 40 59 41 31 21 41 21 21 24 14 19 35 30 18 26 20 27 30 40 The choice of the right celebrity for the campaign is important. We researched. Public opinion turned against him for his perceived dishonesty... The version with the actor was preferred. where the proportion is under 5 percent.97 74% 56% However. However. and had almost no effect on the ad’s performance. two ads were tested for a brand. and saw an almost immediate improvement on brand health and sales. branding levels tend to be similar.S.. Use of local v international celebrities varies by country Japan Korea China Thailand India Philippines Indonesia Brazil Russia United Kingdom USA 8 18 14 16 36 47 49 51 International 13 15 34 92 82 86 84 64 53 51 49 Local 87 85 66 Overall. where over 40 percent of TV ads feature celebrities. enjoyment and purchase intent were much stronger. The second most popular type of celebrity is TV presenters. Australia and China (except Beijing). USED IN THE RIGHT WAY. but this ranking was driven by the 40+ age group. In the U. Who are they? Where the celebrity is central to the core idea. This example shows the gradual build of one celebrity brand cue over 15 ads. In one project for a cereal brand in the UK we asked about celebrities considered positive role models. Barclaycard used the popular comedian Rowan Atkinson during the 1990s in a highly successful campaign. In the ad he played with a younger woman’s hair. There is no pattern of celebrity use by category. this includes enjoyment and involvement. Sweden. the injury flared up and he had to pull out. unsurprisingly. but one featured a genuine former pop star. Alternatively. this is at 35 percent in Latin America. it’s important to establish how well known they are among your target audience. credible news than others. It is 10 percent in the U.S. UK and China data shows. The client adopted our recommendation. the biggest selling UK newspaper. Celebrities can wear in as brand cues What happened in the advert to help you know that it was for Brand X? Celebrity brand cue % M 77 G 58 F E 42 40 L 66 H I 48 47 K 55 J 43 N 74 O 81 C 51 B 34 D 50 A 5 Base: (164) (117) (81) (126) (102) (85) (67) (96) (109) (161) (154) (149) (161) (128) (126) 15 executions over time Ads featuring celebrities are no more likely to be seen as conveying new. one with the celebrity. and one without.

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“Screen Agnosticism” refers to both the way consumers watch video content and the mindset marketers need to adopt when planning video campaigns. This will necessitate an ever greater focus on research to understand exposure across devices in order to plan the optimal utilization of media in an agnostic way and deliver strong creative assets efficiently to video audiences. Rob Valsler. you’re misunderstanding the multitude of ways video content will be consumed globally in 2014. The availability of video content and the technology to view across devices have coincided to create the conditions required for this behavior change to become the norm over the next 12 months. . Marketers will move beyond preoccupations with classifying the full array of screen sizes and the appropriateness of content for each. So for marketers. and then deciding to watch the next episode on your tablet in bed. Head of Media.SCREEN AGNOSTICISM – VIDEO 1 BECOMES A FLUID MEDIUM The notion of marketing activity being online or offline or mobile will cease to be a meaningful debate in 2014. Content is king and the screen is simply the most convenient window through which to view it. If. when you create a video ad or a piece of video content. and YouTube now remembers where logged-in users left off when they restart a video at a later point in time. the implications are clear. they will adopt an agnostic viewpoint where the benefit of maximizing audience has primacy over optimization by channel. switching to the TV when you get home. Meanwhile audiences will consume video content by whichever means is most convenient in a given moment. Instead. At the same time. on any device. which you then show to your partner via your smart TV later that evening. Millward Brown Singapore Changing Channels recommendation Find out how your target audience consume video across screens and plan against that. you picture in your mind a nuclear family sitting on the couch watching a TV. Products like Chromecast and AppleTV make syncing content across screens effortless. It could mean beginning an episode of your favorite series on your mobile during your evening commute. Similarly you may receive a great piece of viral content on your laptop at work. ads are seamlessly optimized for the screen size at the point of exposure—essentially a YouTube ad campaign running as online video and mobile video can also appear on TV— the screen is simply dictated by consumer behavior. This might be long-form content on mobiles or short-form content on connected TVs.

Qwiki. Tumblr GIFs (short animated images. the bulk of the branded content will be shared virally as opposed to paid promotion. Associate Account Director. but if the history of advertising on platforms such as Twitter and YouTube repeats. PC and even TV gap. demand a focus on creativity coupled with simplicity. this trend will continue with more video uploads across a fragmented set of platforms. The trend started with Vine. similar to Vine) and numerous smaller players like Viddy. Tout and Klip. with branded Vines four times more likely to be shared than traditional online video. learn from early-adopter brands. how appropriate these formats are to their target consumers. There are now many websites that allow users to upload short videos. These short formats. the internet exploded with a new trend: micro-video. The popularity of micro-video ads. Rather. For the short term. Brands should remember that the existence of a platform does not necessitate brand presence. This phenomenon is likely to continue to be largely mobile focused. however. Getting the creative and the tone right within these restricted formats is not straightforward. a trend that may well transcend micro-video and start to influence more traditional online video and perhaps even TV advertising. could eventually result in micro-video becoming the most portable video format across screens. tablet. typically shot on a mobile phone. micro-video will continue to be dominated by Vine. Marketers may be tempted towards the longer timeframe offered by Instagram. then within a few years commercialized advertising on these platforms is a near certainty. This makes the trend an enticing one for those brands willing to leap in feet first. However. a Twitter service allowing for sixsecond looping videos. since this is closer to a traditional length execution. Tumblr and Instagram–Vine due to the fact that it largely popularized the format. but many more brands will no doubt follow the leads of Coca-Cola. Instagram due to its already massive user base. and Tumblr GIFs due to the extreme resurgence in the format’s popularity. . and whether they can adequately pursue a micro-video strategy before embarking in this direction. At the moment. but already desktop Vine aggregators are becoming popular and Vine content is being shared on established platforms such as YouTube. MixBit (16 seconds). competitors were quick off the mark and include Instagram video (15 seconds).2 MICRO-VIDEO MULTIPLIES – CHALLENGING MARKETERS TO KEEP PACE In 2013. brands must make fundamental decisions about where they should be active. In 2014. Oreo and Red Bull to experiment further in this space. Millward Brown South Africa Changing Channels recommendation Actively explore experimental micro-video opportunities. Micro-video offers the promise of more engagement than traditional online video for brands. Jarrod Payne. but this risks not taking advantage of the unique audience that both Vine and Tumblr provide. coupled with the ease with which the content can transcend the mobile.

The collective ingenuity. Apple’s longrumored “iWatch” may well appear in 2014 too. Latin America. Head of Digital & Media. all without reaching for their smartphone. The health and fitness market will continue to play a key role in bringing wearable technology closer to consumers.” Wearables will transform the way we interact with our existing screens since they enable users to read instant messages. No single device has yet nailed this perfectly and some safety and privacy concerns are emerging. With virtually limitless applications to a number of verticals. competitiveness and marketing muscle of these firms means that 2014 could see the start of a wearable tech explosion. but wearables are getting ever smarter and improving iteratively. the wearable technology market will represent a huge value proposition for many ecosystem members. Wearable technology will offer unique media opportunities for brands to captivate target audiences and build meaningful differentiation. listen to music or conduct a search. Brands could create a device of their own such as Nissan’s Nismo watch or work through friendly apps to enhance the consumer experience. many mobile health wearables such as Nike+ and the Fitbit tracker are already available and growing rapidly. Smartwatches such as those from Pebble and Omate have recently been joined by offers from Sony and Samsung’s Galaxy Gear. Millward Brown Changing Channels recommendation Consider whether a wearable presence is a good opportunity for your brand to build a meaningful point of differentiation. Wearable devices look set to evolve from “nice to have” tech to “something I want” and then to “something I need. The challenge will be developing a deep understanding of what consumers want from these new wearable screens so that brands can deliver something useful and relevant to their existing proposition Adriana Sousa. Tackling things from a slightly different viewpoint. from manufacturers to app developers through to advertisers. wearable technology looks set to be the next big thing that will start to break into the mainstream in 2014. . Google Glass is also likely to expand its restricted “Explorer Program” to a wider public launch in 2014.3 THE BREAKTHROUGH OF WEARABLE SCREENS Hot on the heels of rising tablet and smartphone ownership. take photos.

given how many times I feel compelled to check it each day. local. this means that granularity is the key to insights and decisions. These mobile devices already capture numerous interactions from social media and can be leveraged for short attitudinal surveys. my new mobile device describes itself as “Life Companion” when switched on and. and video games as accepted and expected parts of our daily information flow. They continue throughout the day. attitudes and actions is yet to exist. and highly personal component to our consumption of messages on screens. Consider that the totality of a household’s exposure to advertising on TV is recorded by set-top boxes.). airplanes. Screen-based mobile devices such as tablets and smartphones are becoming universal. Senior Partner. and viewers’ mobile devices are being equipped to listen to TVs via audio fingerprinting. this is changing. in the era of Big Data. The perfect single-source data set with all of an individual’s exposures. it is an apt description. In 2014. across various moments we all experience. The central question will remain: How are all brand encounters uniquely and synergistically impacting sales and brand perceptions? The ability to passively tie together multi-screen interactions will gradually enhance our ability to answer this question. since no interaction is isolated from all the others. billboards. we interact with screens in taxis. In this “always on” world of interaction with many media. etc. However. This understanding requires a 360 lens. but are often delivered in personal ways. the technology to tie together the pieces of the multi-screen puzzle will be leveraged on a much wider scale than in the past. . Television has been the mainstay for years to reach the broadest number of consumers. traffic patterns. ATM machines.4 MULTI-SCREEN BIG DATA CONNECTIONS ENHANCE EFFECTIVENESS INSIGHT Consumer use of “screens” as a primary media vehicle is not new news. Those survey responses are in turn being linked to panels that are tied to other consumer behaviors and choices (specific sales. From a marketing effectiveness perspective. However. marketers struggle because the digitized data that sits behind this is not yet fully linked across screens. mobile. Bill Pink. adding a social. the importance of understanding each consumer encounter with a brand grows dramatically. Millward Brown USA Changing Channels recommendation Investigate how emerging multi-screen datasets can improve your marketing effectiveness research. But think of the recent explosion of other screen-based devices. For example. Marketers need windows into the specifics of each consumer’s interactions with each screen for each brand.

younger Quartermaster (“Q” played by Ben Whishaw). Our own eyetracking results for digital display ads suggest that just one appealing visual is enough to attract attention. and mobile screens (as well as in print and outdoor media). Minimalist designs such as Apple’s icons and the tiles of Windows 8 help us focus on specific information and have been designed to work well across multiple screens. That attention is retained more by ads with a crisp. sounds of waves gently crashing into each other. Most people have seen Corona advertisements. Jorge Bueso. Yet later on in the film.Innovations. instant recognition via minimalist design is increasingly the aim of great brands. Daniel Craig’s character has an encounter with his new. More often than not. Brands that design their content with a direct and to-the-point approach will tend to succeed. With so many screens to look at and so many competing distractions. In the latest installment of the James Bond series (Skyfall). . The 2013 BrandZ Top 50 Most Valuable Latin American Brands positions Corona (a beer from Mexico) as the top brand in the region. we use “Fast Thinking” to make quick decisions about what we will interact with.5 MULTI-SCREEN MINIMALISM DELIVERS MUCH NEEDED TRANQUILITY Less is more. Other brands will also increasingly adopt a minimalist multiscreen mindset as they architect their future brand aesthetic. the bottle front and center. we focus on various stimuli in quick succession. clear appearance that require minimal cognitive load. Compared to the more exciting gadgets of yesteryear (jetpacks and wristwatches with lasers). A brand such as Dove (and its Real Beauty campaign) has exactly the right kind of visual identity to benefit from this learning and deliver strong impact across online. In a multi-screen world. these offerings seem benign and dull. they prove invaluable. TV. Senior Research Executive . will most likely capture their attention faster and retain it for longer. Brands that interface with their consumers with this in mind. a sense of tranquility— minimalism at its finest! This approach continues to transfer quite seamlessly across screens. Millward Brown Honduras Changing Channels recommendation Review whether your brand’s advertising aesthetic is appropriate for a multi-screen world. taking only 1/20 of a second to make decisions on the appeal of digital stimuli. sunny beach backdrop. They meet in the National Gallery and admire a painting together before Q hands over a gun and a radio.

Marketers will tap into these opportunities via deep audience understanding. For example. non-related content. Brands with no connection whatsoever to sports may reach out online to the long-suffering partners of sports nuts during games. this could be checking social media while a football game is on TV. Added to this. STACKING AND SHIFTING GIVE BIRTH TO A NEW ERA OF MULTI-SCREEN ADVERTISING Multi-screen device usage is creating a new landscape for content consumption that can be simultaneous or sequential and can be driven by related or unrelated content. “Stacking” is simultaneous usage of multiple devices for unrelated content. but still two opportunities for a single brand to contact that consumer. Responsive web design (adapting web content to every device—mobile. Marketers will tap into this by ensuring their advertising content is an extension of the programming content. . Oreo’s “You can still dunk in the dark” tweet during the 2013 Super Bowl blackout set a bar that others will now seek to surpass. Marketers will tap into this by ensuring the consumer experience is consistent across all platforms. “Meshing” is simultaneous usage of multiple devices for related content. fluid. Director of Digital Solutions.6 MESHING. Real-time social marketing is a specific application of meshing that requires brands to be ready to respond immediately to social media comments and will be increasingly expected as more brands seek to be part of the social TV conversation. All of these multi-screen behaviors offer brands new opportunities for connecting with people if they can understand and navigate the landscape. “Shifting” is sequential usage of multiple devices for related content. Messages will be relevant. Marketers will tap into this by understanding that unrelated distractions can sometimes be just as welcome as an extension of what’s happening on TV. this could be watching the cooking channel on TV and searching for the recipe online. and then tunes in to a TV drama at home—two completely unrelated events. For example. tablet. and then tailor your marketing to best exploit these new behaviors. For example. being able to track the consumer’s path to purchase across devices will be key. so that there is no break in the brand experience journey. PC) will become non-negotiable in 2014. The final piece of the multi-screen media puzzle is sequential. Monique Leech. The exact multi-screen sequences will be hard to predict. this could be browsing for airline tickets initially via a smartphone but completing the purchase via a laptop. Millward Brown South Africa Changing Channels recommendation Assess the multi-screen media consumption of your target consumers. The same person reads news on their smartphone during their evening commute. and related. but precise targeting and consistency of messaging will deliver success.

mobile device usage. We will then be able to segment that path to purchase data to derive valuable insights to power both strategic and tactical marketing investments. The emergence of a digitally-enabled world promised an eminently more measurable environment. allowing organizations to truly understand the path to purchase for their consumers. there were now two disparate measurement realms: the traditional non-digital realm and the digital realm. across all channels and all digital devices. we already know that 32% of flat-panel TV shoppers will consult online reviews before visiting a store. We will have integrated data to understand the role of each online and offline touch point on the consumer path to purchase. The good news is that the market research industry is responding. and integrating measurement systems and metrics. There was a time not long ago when organizations had little visibility into the tactics that actually bore fruit. compounding the measurement challenges and introducing yet another silo of market intelligence. with little overlap between them. 2014 will be the year in which a standardized omnichannel view of consumer behavior will become a reality. Organizations had their traditional research and their digital research. aligning. This situation is exacerbated by the fact that market research to help organizations understand these channels and their interplay has been disjointed at best.7 AT LAST… TRADITIONAL CHANNEL INSIGHTS AND MULTI-SCREEN DIGITAL INSIGHTS TIE THE KNOT 2014 will be the year in which we truly start to understand the consumer path to purchase across all off-line and online touch points. . Then the mobile revolution rapidly changed consumer behavior. The concept of the omni-channel consumer is well understood. with businesses striving to ensure a seamless consumer experience across all touch points. Millward Brown Digital Changing Channels recommendation Embrace new research approaches which provide integrated insight rather than treating data from digital screens as a separate silo. and direct mail outreach as well as screen-based personal computer browsing. Conor O’Mahony. including brick-and-mortar stores. 72% of shoppers want to see TVs in a store before considering a purchase. Although consumers seamlessly move across these channels. And soon we will be able to go deeper. and TV advertising exposure. many businesses have yet to set up systems to optimize the consumer experience across them. For instance. call center interactions. However. and that 53% of shoppers will subsequently visit that retailer’s website. Vice President of Products. Market intelligence vendors are standardizing. The industry responded to this challenge by devising smart but not entirely satisfying ways to measure success.

Twitter will continue to define social TV in the immediate future. Senior Research Analyst. not just those watching one specific sports show. Another way is via branded tweets targeted at the chatter around a specific TV show. Millward Brown Digital Changing Channels recommendation Align TV media buying with Twitter promotional efforts to maximize your social TV audience. Based on their data connecting TV to social media usage on the second screen. In this way. by replicating a TV target audience in the Twittersphere—for example. however. like Facebook or other niche networks. In 2014. This puts less pressure on real-time “meshing” of TV and a second screen. by targeting people interested in all kinds of sports programming. it’s become clear that social TV is. Twitter will be able to define likeminded communities organized around TV viewing habits. Twitter TV. the social TV opportunity will be expanded as Twitter introduces additional audience-based targeting opportunities. In the past year. for all intents and purposes. social TV marketing will evolve from being just a narrative to becoming part of an audience’s lifestyle. Anne Czernek. For brands that are title sponsors of a show or an event. There will be other platforms. It also opens up opportunities for advertisers to participate in social TV in a broader way. and social media is the main way people are interacting with TV content. and not necessarily just when those people are tweeting or reading about show-specific content. as brands can also target these audiences at other potentially less distracting times. this means they will be able to continue targeting their show-specific audience long after the event itself. One way advertisers are already taking advantage of this is via TV ads with hashtags and promoted tweets using that same hashtag. Eventually this will lead to more sophisticated psychographic targeting when those audiences are further segmented based on other interests and habits. that will now amplify their presence in the space and may expand the arena.8 SOCIAL TV’S PROMISE IS TIGHTLY COORDINATED TARGETING ACROSS CHANNELS AND SCREENS Consumers are spending more time in front of the TV with digital and mobile devices. .

Even on the smartphone. Rakesh Kumar. Firefly Millward Brown Changing Channels recommendation Youth-targeted brands should adopt a mobile–first marketing approach. Only the most innovative. Creating a “buzz” in their digital sphere and being able to connect with them at their level. These brands will also be perceived to be more credible. internet browsers. and the bulk of their living. and buying will shift to smartphones even as they continue to multi-task across their other digital devices. Constant innovation will be key in 2014 since the youth of today are attracted to game changers as well as trendy and fashion-forward brands.Asia Pacific. Therefore. offers and products will succeed in holding their attention.Middle East . These marketers will need to keep in mind that the younger generation is very fickle. in order to demonstrate that the brand is on-trend and up to date. Head of Africa . successful youth-targeted mobile ads will be noticeably different from conventional TV ads or even online ads. nimble and fashion-focused. Mobile use is deeply personal for this generation. This should likely have a heavy social emphasis and be innovative. . since these social networks are rapidly becoming the platforms for all their information-seeking and decision-making. Because of this. forward-thinking and relevant marketing. and instant messaging applications. will be crucial—especially for niche brands that depend on word-of-mouth referrals. they move constantly between social media sites. A brand that can “befriend them” will in turn be assured of loyal brand ambassadors who endorse and broadcast their choice to their world. Marketing efforts will therefore focus on multi-screen strategies that primarily reach the younger generation via social media with something exciting and fun. learning. youth-focused brands will lead the field in providing a seamless multi-screen experience across devices in order to retain attention and to drive brand consumption among this audience. micro blogs. in a language and style that is youth-centric.9 SMARTPHONES ARE THE ONLY SCREEN THAT COUNTS FOR THE CONNECTED YOUTH OF TODAY Smartphones are at the hub of young consumers’ lives.

especially those big advertisers who historically relied on mass TV media. during 2014. Evidence such as this will continue to drive growth in online video advertising. Organizations will restructure as they realize that TV and digital media buying can no longer be split. Many multi-screen video strategies will be defined by a focus on optimizing cost-effective reach. but by no means least. Last. TV and Internet GRPs) as well as multi-media reach-based optimization tools. we will see many interconnected developments. and not just optimized for TV. more use will be made of unified media measurement currencies (e. One recent Millward Brown study in China found that transferring 40% of the TV budget to other screens increased total reach by 20% and reduced investment required by 30%.10 VIDEO BUDGETS CONTINUE TO SHIFT FROM TV TO MULTI-SCREEN It is clear that consumers now live in a multi-screen environment. . Marketers want to follow and communicate with consumers as they journey across multiple screens. especially pre-roll. Millward Brown Changing Channels recommendation An appropriate video budget allocation across screens will increase ROI. Peking Tan. As marketers increasingly plan for multi-screen video success. and smartphone screens are large enough or delivering high enough video quality to ensure good advertising attention and effect. Our evidence suggests these concerns are unfounded and that appropriate budget allocation across screens will increase ROI. where TV consumption is being supplemented by ever more time spent viewing other screens.g. further effectiveness learning about the roles of different screens in building specific brand associations will prove the value of multi-screen strategies and will also be used to improve future campaign performance. Adapting to this change remains a huge challenge to marketers. Use new planning and effectiveness tools to inform your transition from TV to multi-screen. More video advertising will be created to work well across all screens. but some still have concerns about whether laptop. Director of Research and Development. To enable this. tablet.

The very idea of a simple screen is being blown up. given the proliferation of messages is exponential?” Now is the time to start thinking about these questions. PC. Catie Williams. the very question itself may be changing. and LED light-up cars?” Those who thought that Google Glass was innovative because it could project a message literally in front of the wearer’s eyes will be astounded to see some of the platforms that will be coming in the next year: clothing woven with flexible LED thread and flexible processors built in that can deliver messages and capture data (Nike is already experimenting with this). beyond our multiscreen strategy. we must answer the question: “How do we market across clothing. wearable devices. before that conundrum is solved. smartphone—and how to get their messages across via these platforms. . Now. our lives are filled with colorful glowing rectangular screens that show us anything from revolutions in Cairo to recipes for kale. But. tablet. and phone and onto gadgets from glasses to watches to clothing—and don’t forget elevators and taxis and bike shares. Millward Brown USA Changing Channels recommendation Don’t get obsessed with the four screens. and LED-covered taxis that geo-locate to deliver messages relevant to the neighborhood it is passing through. Think creatively about the evolving digital outdoor landscape and its potential to deliver arresting and powerful marketing “firsts”.11 DIGITAL OUTDOOR BLOWS UP THE IDEA OF A SIMPLE SCREEN More than ever before. The screen as we know it is changing into something we may barely recognize. Analyst. before you see someone on the street with a T-shirt that flashes an ad for your competitor whenever they walk by your store. Technological innovations are taking the traditional screen beyond the TV. advertising infused with heat sensors to market ice cream on a hot day (as was done in London). tablet. For marketers. the challenge now becomes: “How do I create and deliver a message that is constantly contextually relevant and what data do I need to have that message evolve?” An added challenge is the question: “How do I ensure that the creative is even more appealing. PC. Marketers are obsessed with the four screens—TV. all in an instant.

Asia Pacific. . and who implement truly integrated multi-channel strategies will be the biggest winners in 2014. Africa .12 SUCCESS WILL NOT GO TO THOSE WHO FOCUS ON SCREENS ALONE Before digital came along. In truth this narrow mindset has in part been a product of the inadequacies of the approaches used to evaluate multi-channel performance. such as Posters. Many now risk swapping one obsession for another by focusing on “multiscreen” alone. People don’t yet spend their entire lives staring at screens (though it may sometimes feel that way!). Print and especially Point of Sale. The most telling facts are that: We have found that nearly 40% of campaign impacts derive from true multichannel synergies – by this we mean 1+1=3 style media multiplier effects. All this has happened despite the explosion of digital (or “screen”) media options across the globe. Across our global CrossMedia database the single most impactful brandbuilding medium per dollar spent is magazines – and other non-screen media have also held their own against screen media in this respect. However. However. the advent of more sophisticated evaluation methodologies such as our own CrossMedia Research shine a clearer light on the truths of integrated marketing performance. the most successful marketers will be the ones that implement truly integrated multi-channel strategies that stretch well beyond “screen” media. Media Director. Millward Brown Changing Channels recommendation Consider the role your multi-screen media plays in the overall channel mix. Often the biggest synergies arise between screen and non-screen media. where consumers are more persuaded by the brand’s message if they encounter it in more than one media.Middle East . many marketers almost exclusively obsessed about TV as if it was the only touch point that mattered in brand marketing terms. James Galpin. Screen media do perform well within our CrossMedia studies. but we are sure that marketers who think more holistically than “screens” alone.

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‘Jefes y Jefas de Hogar’ and the ‘Universal Child Allowance’. By Martín Schijvarg. the purchasing of dollars has been restricted to certain commercial activities. Since 2011. This has severely damaged the construction industry in particular. losing almost half of their value (43%) with a fall from US$4. as some sellers want to reap dollars from the sale and buyers face difficulty in obtaining them. CHARACTERiZED BY STRONG CONSUMPTiON THERE ARE CERTAiN iNDUSTRiES. including the ‘Plan Trabajar’.7 billion. with varying results depending on the type of goods. which has exceeded 20% annually over the past five years. Argentina has managed to maintain employment rates and the social development funds designed to improve them. Earlier this year it also announced that the tax on credit and debit card purchases made abroad would rise from 15% to 20%. This has generated strong growth in imports and in order to strike a positive trade balance. the government has restricted imports of many products. since properties are quoted in dollars and currency disparity between the official and parallel market creates tension. (Note that the gap between this figure and INDEC officiala figures of 10% annual inflation is very pronounced). An important feature of the Argentinean economy and approach to employment in various sectors remains collective bargaining (for example over workers’ pay and conditions). MOBiLE PHONES AND OTHER APPLiANCES) THAT HAVE PERFORMED PARTiCULARLY WELL. SUCH AS THE AUTOMOTiVE AND TECHNOLOGiCAL (LED TVS. Another issue the government has been tackling is the capital leakage caused by the flight to the dollar (a common Argentine response to economic uncertainty). Millward Brown.ARGENTINA Rising Tides: Consumption and Inflation IN RECENT YEARS. Higher consumption levels have forced Argentina to import more and more energy and gas to meet the growing demand. Argentina C ompared to the global context of economic stagnation in the United States and in several European countries. leading to a 50% increase of the parallel dollar rate (also know as the ‘blue dollar’) this year. In many cases. ARGENTiNA HAS MANAGED TO SUSTAiN THE GROWTH OF iTS ECONOMiC ACTiViTY.7 billion to a mere US$2. ARGENTINEaN BRaND VaLUE ROBErTO DE NAPOLI BrandAnalytics Associate Argentinean brands have experienced a very big drop in the BrandZ™ Top 50 Most Valuable Latin American Brand Ranking 2013. 2012 Beer 7% Financial Institutions 4% Energy 66% 2013 Beer 22% Financial Institutions 5% Energy 48% Communication Providers 23% Communication Providers 25% ARGENTiNEAN BRAND VALUE % CHANGE BY SECTOR -28% Energy 9% Communication Providers 206% Beer 34% Financial Institutions OVERALL BRAND VALUE CHANGE 2012-2013 -43% + Source: BrandAnalytics . The government has tried to address the sustained increase in the cost of living by controlling prices. this has created agreements at – or even higher than – the inflation rate.

it may well result in a trade-off where the strongest brands earn the loyalty of consumers by offering the best value combined with an emotional reward. ADOPtION OF GLOBAL cONSUMPtION PAttERNS. • Large families where the children return to their parents’ home with their own children and receive help from grandparents to raise them. Business Development Director. brands have greater challenges and responsibilities. In 2008. DRIVEN BY tEcHNOLOGY As elsewhere across the globe. Consumers engage easily with brands that reflect or are part of the local culture. new family compositions and household profiles arise and significantly affect consumption patterns: • Single-parent families (households with one adult. elderly caregivers. smartphones and social networking are also rapidly increasing. THE FORMALIZAtION OF DOMEStIc WORK INcREASES HOUSEHOLD cOStS For a long time. However. By Aurora Yasuda. ECONOMIC. This. Brazil has seen the growth of e-commerce and online shopping. The value of ‘pester power’ will perhaps be sidelined for brands by the growing importance of the more considered approach of the older consumer. . starting this year. Brazil experienced a phase of increased consumption. The over 65s population represents the highest growth. Millward Brown Brazil THE ALtERED AGE PYRAMID Improved quality of life has increased the average life expectancy of the Brazilian population. That ‘something’ must be differentiated enough to attract the consumer’s interest. HERE WE CONSIDER SOME OF THE KEY FaCTORS THaT aRE SHaPING THE BRaZILIaN CONSUMER PROFILE TODaY. A cOLLISION BEtWEEN cONSUMERISM AND INDEBtEDNESS With economic stability and a steadier employment rate. and may well exceed 4% year-on-year between 2025 and 2030. The projection for 2050 shows a reversal: children will represent 13% while the over-65s are expected to exceed 22% of the population. but it is the brands that fulfill the mantra of ‘glocalization’ that are at an advantage. Brazil remains a market of great opportunities but to capitalize upon them. giving many of the population access to consumer goods that they once believed to be beyond their reach. generating a very high default rate. the penetration rates of tablets. and meaningful enough to merit their engagement and loyalty. 0 to 14-year-olds represented 26% of the total population and the over 65s accounted for 6%. nannies. • Blended families – couples in their second or third marriage where their children from previous marriages all live together with them. even among lower classes (and despite the fact that the infant mortality rate has also shown a downward trend). CULTURaL aND POLITICaL TRENDS THaT aFFECT CONSUMPTION PaTTERNS. the employment circumstances of many domestic workers were characterized by high informality with limited access to social rights. the growth rate of the 0 to 14-year-old population has been declining in absolute value from 1990 to 2000. However. The impact of this on disposable income – for both employee and employer – may yet to be fully felt. This indebtedness is already affecting the decision-making process for the purchasing of staples. The indebtedness rate has more than doubled in eight years according to Central Bank – from 18% in 2005 to about 43% now. caretakers and so on has substantially increased. This is due to families having fewer children. In the face of these major and ongoing changes. forcing families into new agreements and arrangements.BRAZIL What Brazilian MacroEconomics Mean For Brands ANY PLaNS FOR STRaTEGIC DEVELOPMENT OF LOCaL OR GLOBaL BRaNDS WITHIN BRaZIL MUST RECOGNIZE THE MaJOR DEMOGRaPHIC. SOCIaL. this segment formalized its working relationship with access to labor rights from other categories. Meanwhile. usually mothers living with their children). CHANGES IN tHE MAKE-UP OF tHE FAMILY UNIt In a more open society with greater tolerance and acceptance of separation and divorce. Thus. brands must consistently deliver something beyond the product or service itself. drivers. combined with the fact that the large contingent born between 1950 and 1960 – ‘the baby boomer generation’ – has now reached maturity and has now begun to change the age structure of the population. aND THE CHaNGES THaT aRE OCCURRING WITHIN THEM. the perils of easy credit and high interest rates led to an indebted population that was unable to make ends meet. This window on the world has strengthened the presence of global brands. the cost for maintaining maids.

Brands haven’t redefined their relationship with consumers. every individual is empowered to be either an advocate or ‘badvocate’ (critic) of a brand. brands limit their use of social networks to two areas: promotional advertising and complaint departments. who are now clearly social actors – as seen especially clearly in online social networks. Instead. This phenomenon has found resonance in the media. but ended the problem almost instantly. in the second part of this year. the transparency consumers want doesn’t imply a larger quantity of information. It has recognized that in a socially networked economy. something other industries have failed to do.National Consumers Service. but of consumer rights. generating a proliferation of TV programs dedicated to denouncing breaches. they were not really providing) and responded to consumers’ new status. IN FAcT. social networks still represent the fastest growing platform for participation and organization. A clear sign of the strength and impact of consumers’ increased organizational capacity is the government’s recent creation of agencies like SERNAC (Servicio Nacional del Consumidor . .” Today’s consumers demand two things: plain talk. proactively heading off potential problems before they could arise. Another study showed that olive oil is not always as beneficial to health as people have been led to believe. a Government institution) on finance which protects consumers’ rights. One study revealed that packaged bread labeled ‘light’ provides more calories than the regular. and knows how to relate to consumers on their new terms. They changed their language and stopped talking about volume in terms of number of megabytes (which by the way. And when you do provide information. the telecommunications industry has moved a step ahead by establishing self-regulation. AS WELL AS THEiR RiGHTS TO iNFORMATiON. Client Service Director. The media itself has given rise to a need for new regulations of consumer issues in Chile. so brands must hasten to develop strategies to mitigate against its effects and capitalize on its potential for good. Two recent cases exemplify the fact. H&M is an international brand that probably has experience in these issues. brands apparently have misunderstood or ignored the demand for more transparency. “Don’t leave me in the dark. They are focusing on the distinction between what’s legal and what’s legitimate. cONSUMER cOMPLAiNTS ARE BEcOMiNG MORE FREQUENT AND HAVE EVOLVED FROM SiMPLE cRiTiciSM TO ORGANiZED AcTiONS. consumer mistrust is on the rise. The most recent example regards call centers: the day after a news item appeared denouncing irregularities. not monologue. In the light of this trend. Brand managers seem to believe that the more horizontal. it seems. it’s where consumers express themselves most clearly and fully. The company didn’t wait for an investigation. CONSUMERS HAVE BEcOME MORE cLEAR AND DiREcT iN DEMANDiNG THEiR RiGHTS iN GENERAL. They just want to be leveled with. criticism tended to centre on retail. However. Whereas previously. a relationship built around dialogue. where consumer organizations currently have over eighty thousand petitions for legal recourse pending. a new law will be enacted to regulate nutritional labeling. not of civil or human rights. Brands make and break promises or are vague and insincere in their communications. As a result. Another example that speaks of sincerity is H&M’s arrival in Chile with a very publicized promise of fair price for fashion. now there is a return to issues of mass consumption and especially food. How are brands reacting to this new context of consumer participation? Insufficiently. don’t insult my intelligence. This is especially evident in the case of health insurance and retirement funds. So. and to be informed about how problems will be resolved. Consumers seem to be saying. SUBTEL simply stopped all sales by phone. By Marcela Pérez de Arce. brands have not yet grasped the fact that the demand coming from these ‘new consumers’ is for a more horizontal and candid relationship. and later banking. Millward Brown Chile T opics of complaint have changed. candid approach will leave them vulnerable. This demand for transparency doesn’t necessarily mean a desire for more data or more detail about aspects that don’t interest consumers.CHILE Chilean Consumers Make Their Voices Heard IN CHiLE. THE GROWiNG PARTiciPATiON AND EMPOWERMENT OF cONSUMERS iS A HOT TOPic. It’s clear that Chilean consumers are determined to exercise this power. but rather more sincerity and honesty. Similarly. Consumers themselves are questioning regulations – not just product quality itself. In Chile. unlabelled marraqueta (a traditional Chilean type of baguette). but the actual norms regulating that quality. But. a promise the company has apparently been successful in keeping.

THE tIMES tHEY ARE A-CHANGIN’ Mexico may be traditional. in fact. and complemented by international retailers (namely Inditex and its whole brand portfolio). Competitiveness in the country is still an issue but. Tycoon Carlos Slim’s empire owns at least four brands on the ranking (Telcel. more and more. a huge change compared to 2005’s 462. China’s entry into the World Trade Organization in 2001 has forced Mexico to lower its tariffs for imports of said country. MEXICAN CONSUMERS HAVE HISTORICALLY BEEN IN TOUCH wITH A wIDE ARRAY OF BRANDS. the second most valuable brand in the country. AND THE PLETHORA OF LOCAL OPTIONS AVAILABLE. In the case of media. but more and more. Alongside Mexico’s competition laws on telecoms. opening up possibilities for new competitors – foreign satellite and cable operators and maybe even one new broadcaster led by Carlos Slim – to try and shape Mexican opinion. THIS POOL KEEPS GROwING AS BIG INTERNATIONAL PLAYERS REALIZE CONSUMERS IN THE COUNTRY ARE BRAND ORIENTED. TV is still seen as the key media to start marketing activities with. Televisa (third most valuable brand in Mexico) and TV Azteca. to boost their marketing communication efforts. including the most valuable retailer in the country (Bodega Aurrerá and Superama). Aiming to increase Mexico’s competitiveness. Mexico’s BrandZTM Top 15 ranking illustrates the brand richness in the country. appears in the ranking with two. there were 595 ads a month aired in primetime. hold most power in the market. By Fernando Alvarez Kuri. brands in the country must take into consideration the consumer’s new relationship with media. which goes far beyond just saturation. Take for instance the Mexican furniture industry which. In this new context. taking advantage of their brand heritage as well as their position as locals. and which has been facing a hard scenario when confronting imports from Brazil and China. SAVVY AND wILLING TO SPEND IF THE RIGHT BUTTONS ARE PUSHED. But things have changed lately. lowering scores on communication and increasing a sense of glut and passiveness towards the message. But telecoms are not the only category in Mexico in which competition is an issue. thinking of it as the second most relevant media to obtain information from (the first place being search engines). they will have to create new ways of seeing. With high penetration. the largest brewer in Mexico. occupied third place by sales volume in the world after the US and Italy. In this scenario. the government is progressively planning to open more and more sectors and industries. Internet is the most used and trusted media. H&M and Forever 21 and their entry is forecasted to have an important impact on the country’s retailing outlook. Inbursa and Sanborns). Nine out of ten Internet users in the country use social media.MEXICO A Rich Brand Environment.000 users in the country navigate through mobile devices. Mixed media consumption. The perceived ‘safety’ offered by this media has led to an important stage of saturation: in 2012. Yet. Of all the categories included. Mexican consumers spend more time online and doing more activities than they did in the past (internauts in the country spending over four hours a day doing more than three simultaneous activities). radio and print. since local brands have grown isolated. competition laws in the country are set to change. 70% of the 46. Director of Millward Brown Optimor Mexico F rom beer to bakery. ITS GEOGRAPHICAL LOCATION. passing through financial institutions and cement. the renewal of legislation is set to change the panorama swiftly. namely gigantic Telcel. meaning that international players whose production depends heavily on China and Southeast Asia are now considering Mexico as an attractive market to enter. Saturation has impacted ad effectiveness. Walmart’s Mexican branch. and Grupo Modelo. according to Millward Brown’s DynamicTrackingTM Database. showing also another crucial characteristic of the Mexican market. the search for more active participation as well as interesting shifts in preferences will not only be the most basic challenges advertisers will have to face in Mexico. Historically. owns two brands. one of the most dynamic has been retailing. FURTHERMORE. but it is also open to the new: the country is one of the region’s largest Internet markets and it is set to grow. including the one occupying the spot as the most valuable brand (Corona). . narrating and generating experiences in an increasingly competitive market. between internauts. mobile is key. But Concentrated in a Very Few Hands WITH THE COUNTRY’S OPENNESS TO INTERNATIONAL MARKETS. Liverpool and Sanborns. Mexican brands have started searching for ways to overcome an increasingly attractive and thus challenging market. by the end of the nineties. the largest Walmart operation of the world after that of the US. Mexico has developed a strong retail culture yet it has been dominated by just a handful of local powerhouses such as Bodega Aurrerá.600. brands are changing their approach towards it. Telmex. protected by the government’s past international trade policies. which is that power is concentrated in a very few hands. surpassing public and paid television. Some of these players include heavyweights such as Gap. But apparel is far from being the only category that is suffering the effects of past protectionist practices. this has pushed the importance of a few brands in the sector. Media is also an industry concentrated on a very few: only two broadcasters.

000 deaths across the country. even having once held the position as the country with the most Free Trade Agreements in the world. as well as a society heavily struck by violence after the previous government’s attempts to fight drug cartels. PROVES TO BE FaR FROM aN EXCEPTION TO THE RULE. But Mexico has also gone far beyond its continent. has had an effect on the way Mexico is perceived internationally and has. renewed a sense of opportunity in the country. The dynamics of these figures illustrate a part of Mexican reality. Mexico has proven to be a true ‘hinge state’. somehow. With a privileged geographic location. the US remains the country’s biggest trading partner by far. especially since they depend heavily on political will and fragile alliances that still have yet to be fully forged. Mexico held general elections. SWINGING BACK TO THE PAsT. Peña Nieto’s government has sketched some changes that could potentially boost the country’s competitiveness. instead the discussion for structural reforms in key sectors have taken the country’s political stage. leaving the country dependent upon a handful of industries. during the second half of the twentieth century Mexico followed an economic model that aimed to industrialize the country through the substitution of imports. and highly protectionist trade policies. ALADI). as well as the proposed change in the way drug cartels were being confronted. Despite this openness. As with other Latin American nations. it holds 14 FTAs across the globe encompassing partners such as Japan. the system cracked. With a huge population (surpassed in the region only by Brazil). which resulted in more than 50. By Fernando Alvarez Kuri. MEXICO. as well as its numerous international agreements (which have eased access to the country).6% to 2.3 million by the end of 2012.6% per annum from 2008 to 2012 according to the World Bank. shows another interesting trend: despite this growth in poverty. Coneval’s data. even though it is still an everyday issue. though there is still a long way to go before any real effect of such measures is felt. LaTIN AMERICa IS THE MOST UNEQUaL REGION IN THE WORLD IN TERMS OF INCOME. and Mexican authorities had to look outward for the first time as a way to achieve development. Mexico is open to international trade.8 million in 2010 to 53. LOOKING UP FOR THE FUTURE In 2012. holding more than 50% of its imports and almost 80% of its exports. with a value of $9. Nowadays. The number of those living under the poverty line had risen from 52. The elections resulted in the return of the PRI (Revolutionary Institutional Party) who had ruled the country without interruption from 1929 to 2000 putting an end to the right wing PAN’s (National Action Party) 12-year rule. In 1982. everything wrapped-up under what he called the ‘new-PRI’. Director. the tax system and labor markets.741 (current US$) and having grown 2. places the country as fifty-seventh. because of its interdependence with the American market. . according to data from the country’s National Council of Social Development Policy Evaluation (Coneval). Incumbent Enrique Peña Nieto’s government inherited a country filled with challenges: an economy which. holding strong commercial relations with both cultural and geographical continuums to which it belongs: North America (namely under NAFTA) and Latin America (under various FTAs and multilateral agreements such as the ones held under the umbrella of the Latin American Integration Association. not far behind other major Latam economies such as Argentina (51) and Brazil (53). was hit following the 2009 World Financial Crisis. Peña Nieto’s campaign platform focused heavily on economic matters and structural challenges in the energy sector.4% in the same period.MEXICO Mexico: A Country of Increasing Contrasts ACCORDING TO DaTa FROM EVERY SINGLE INTERNaTIONaL ENTITY aVaILaBLE. a country in which a huge part of the population still lives under poverty lines but has increased its overall purchasing power. extreme poverty decreased from 2. the European Union and the European Free Trade Association. Peña Nieto has aimed to unite political forces under what is called the Pacto por México (Pact for Mexico) with varying degrees of success: violence is no longer the central axis of the political discourse. This meant the development of models based upon heavy subsidization. Millward Brown Optimor Mexico T he Mexican economy has shown a positive trend on macroeconomic variables. however. The nature of such platforms. which included the ballot for a new President of the Republic. its geographic location (which has granted access to the US market and has influenced consumption habits). aS a KEY PLaYER. Mexico has become an interesting consumption market for brands from across the globe. yet most of the country’s population has failed to enjoy the benefits of this growth and stabilization. increased taxation. Mexico’s GDP per capita.

is an increasingly important factor. you could conclude that for many categories. INtERCItY DIVERSItY Besides the three strips. What should brands do to engage with such a diverse consumer? What should they do in this era of evolution. THE MILLENNIALS IN PERU Because the economic resurgence happened when today’s youngsters were just babies. (the Coast. This. a lot of the time. this growth started to be noticeable in the provinces. For the first time. BEHAVIORAL AnD SOCIOLOGICAL – THAT ARE CURREnTLY IMpACTInG UpOn BRAnDS In PERU. The answer is that the Peruvian product breaks through by being supported by local consumers (loyal to the local product) and by globalization. NOR IS THE REAppEARAnCE OF A MIDDLE CLASS. as we face the challenge of the digitalization of brand communications? These perhaps are the key questions marketing will have to answer in order to keep brands growing in this society. A couple of years ago. their choice of brands. THE NEW SOURCE OF ECONOMIC GROWtH IN PERU Although the local economy is not growing as quickly as in the previous decade. (WHICH ALMOST DISAppEARED DURInG THE LAST pART OF THE TWEnTIETH CEnTURY). the leading actor in one city could be simply irrelevant in a nearby city. Peru faces a transversal generational phenomenon. HOWEVER. MUCH OF A TALKInG pOInT THESE DAYS. THE SPEED OF CHANGES IN BEHAVIOR AND tHE IMPORtANCE OF ‘WORD OF MOUtH’ Even in the past. Thus. has grown continuously – and this has happened in a context where parents raise their kids trying to forget the past.PERU A Particular Multiverse (The Expression of the Peruvian Identity) NOWADAYS. which are now becoming successful abroad. THE HUGE ECOnOMIC GROWTH THAT PERU HAS EXpERIEnCED DURInG THE LAST 15 YEARS IS nOT REALLY THE SUBJECT OF DEBATE. Now it is the turn of Arequipa. MORE RECEnT DEVELOpMEnTS – ECOnOMIC. . The conducting of continual brand surveys in nearly 20 different cities may be a key to success for companies which do not think of Latin America as a country (with Buenos Aires or Mexico City as its capital) or of Peru as an ‘extension’ of Lima. the generation gap appears to be even greater. This raises the question of why the ‘giants’ themselves have not been as successful in this market as in the rest of the countries of this region. despite still being poor. and are also becoming global themselves. Huancayo. HERE WE EXAMInE A nUMBER OF OTHER. you would see sudden changes in the market share of some categories where the main driver was a word-of-mouth rumor: “It’s not good anymore” or “It seems they changed its flavor” are phrases that could generate significant behaviorial changes that were very hard to reverse. Millward Brown Peru THE SUCCESSFUL ‘DEFENSE’ OF SOME LOCAL COMPANIES There are many examples of local companies that have managed to maintain a strong position in the local market (despite the presence of some global giants). Managing Director. values and. it remains healthy. Trujillo and Piura (among others) and it is clear that consumers in these cities are quite different in regard to their behaviors. By Claudio Ortiz. Young people with a ‘millennial’ attitude have grown up in a society that. the Andes and the Jungle) huge differences are to be seen in the consumption habits among the various cities of this country (together with a certain homogeneity within each of them). in a market that is adapting rapidly to digital processes and virtual social networks. it has its own models. The effects of this social revolution are just beginning to be seen.

Jamie Jones Jamie. Dede Fitch Global Communications and Marketing Mike Agee.millwardbrown.com North America . Baljit Thandi.Thandi@millwardbrown.com Millward Brown © 2013 . Lisa Parente. Please contact: Global . Amanda Bruhn Global Brand Marketing Dominic Twose Knowledge Management www. Michael Almon. Katie Pearce. Ben Marshall.Jones@millwardbrown.com Millward Brown experts are available to speak globally.Perspectives PRODUCED BY Miquet Humphreys.Baljit Thandi Baljit.