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EN IN —_ SD ER Creative advertising that cares BUSTS Tit) Letus worktogether reater good It youwanto got hold of m and have achat abot to possittis and ptfals in tha respnsibl eolution and how to taka th tha stops "Get naked, got together and gat aut hee, than visit meat thamasolstoccom oan Twitter ‘@thomasalster. Ihave more than 12 years’ experience inthe commuricatons industry and have worked wih diverse range of clients ram MeDorads Amnesty Intemational Im also an experienced speaker on various topes and lead workshops. ook forward to hearing rom you. thomastalstrcom @thamasalster Fst published in th Uta Kingdom in 2072 by Thames & Hutson Ld, 1814 High olor, London WC1Y 70 Copyright © 2012 Thomas Kalter Designed by Patck Marsssay ‘Allights Reserved, No part ofthis publication may be reproduced or ansmitad in ay frm aby any means, electronic mechanical, including photocopy, racortng or an other norman storage andretieval system, without por permission in writing rom the publisher. Bish Library Cataloguing in Publication Data ‘catalogue aca fortis books avail frm th rtish Library ISBN 9780-500 1626-3 Priniod and bound in China by 110 Printing International Lid ofind out about al our publications, please vst wwe thamesandhudson.com There you can subscribe to our e-newsletter, browse or download our Current catalogue, and buy any titles that are in print TANDING LOHAS MARKET SEGMENTATION aebitiinitntiiT GbeeiaaneHTAAATED “(Usps Heth 2 Sutbity) LOHAS ~ rena presicors ana inuencers - Deciested To personal & planetary Neal « Values aiven (ue piice sensive) = Most pric green buyers Information juries « Eco-estvie = Envonmenta 13 seekers (ano boyooter) NATURALITES prientation & tion oti etl Burthases «Income cctates green behaviour t Sed purchases, cresting atucinal ve benavoral sot ‘lsconnects Wore ikely ta use LOMAS i umabies than durables DRIFTERS 26 % 60,000,000 ~ Newer geen consumers «Imag; conscious ana tend" Practang levance fo them = Knowegge ano Ungerstancing imi purch especialy of eurables = Currerily oi Growth of green produce CONVENTIONALS 27% 63,000,000 ‘Rooted ia pracicaly« Waste reauce ahd heavy teeters = Dien move by than envionment * Sustainabity UNCONCERNED 17%o 10.0000 Notagainst ine envronment, Oui not acively ‘engages in protecting i ouyng green products, CSR, These markets ently the eels offence and specific mutational and botavaral vers in each consumer segment across a multitude of factors Information provided by Natural Marketing Insitute Source: Ns LOHAS Consumer Trends Database INTRODUCTION | don't ike most advertising. In fact | hate 99% of it, zomebody is trying to sell me something than why isthe communication so pushy? Why sit co dierespectlul? Why waste my time forcing me to watch a commarcal ust so | can see tho contont I really care about? There 's, however, 1% of advertising that really makes@ diference, and that ie where brands start by showing an interest in me the conaume. In that sense, this is advertising for good because the premise or heance to operate begine with shared interest. The brand begins a dlalague about something that| happen to care about ~ and genuinely caring brands take one step further and make a teal, tangibe ciference in iyi In this way, Ido beliave that advertising can save the world and itself Yes, now Ive ssid it—its out here, You may evan chuckle when you readthi.m not an idealist or stres-hugger and, yes, renal, advertising has got us neck deep in today’s climate and humanitarian crise, but this ust makes me even more confident that advertising can also get us out of. Nobody knows consumers, brands and the market better than those of usin the advertising industry and we need to take on the challenge, From a quick laugh to @ lasting difference ‘A esponsible advertising industry might sound hypocritical. Atleast that's how itusedlto be. In 2010, when Pepsi turned its back on using celebrities such as Britney Spears and 2 22-yearlong presence at the Super Bow it signalled the end of advertising as we knowit. Instead, Pepsi choze to make $20 milion available to fund 2 community projec, ‘Pepsi Ratrash inthe US and subsequently around the world “This chit hae chown not only that advertising has moved in a more responsible direction, but also that the mase markst hs too, Bonin Bough, Global Director of Digital and Social Media at Paps ‘explains just how far roaching i ie bacoming: ‘More people have ‘voted for project pitched to "Pops Refresh” than voted forthe last Us president’ We ate atthe ealy stages of one of the biggest business ‘ansformations in history; and advertising is ot exempt. This fs a development that no one can afford ta ignore because it not only requires new knowledge, but also demands anew approach, ‘When bad can’t hide, good will win Branels now have nowhere lef to hide A well-connected online ‘community of people s exposing and judging brands’ steps and missteps more than ever before. Look at websites such as WikiLeaks or ‘ther social networks and see how they have shaken governments and ‘obal brands, and helped topple regimes inthe Middle East. You ‘and are just as much a part of that movement when we write an online review criticizing the amount of sugarin a box of our childrens cereal ‘or post a Fazebeok comment about a company’s szpaling customer service. That tweet or comment can inspite like-minded people and ‘evolve into screaming kettle of consumer pressure on a brand, with the power to change markets in minutes. Az Naomi Klein pinpointad in hor book No Logo, ln many ways branding is the Achills hoo! of tho ‘corporate world’ Here ie just one example in 2012 McDonald's usod “Twitter to promote their frach produce along with thee farmers, using the hashtags #MectTheFarmers and #McDStories. One tweet assured, "When u make something with pride, people can tate it. Only hours «after the campaign was launched, people took over the hashtags {and fred some heayy shots atthe Goldin Arches. Ono ofthe worst ‘customer comments came from @Muzzafuzza, who cai, T haven't boon to McDonalds in vars, because I'd rather eat my own darthoes! As the ‘example show, you don’t own your story any more: people ae taling t {for you, s0 you'd better make sure it’s 3 good one. In fact, 2 Nileen Global Onine Consumer Survey from 2009 shows that consumers ara 3¢ lee o trust » complete stranger’ spon online 2 2 brand's web, Nothing but the whole story People arene longer oniyinterestadin knowing if theitnew TV ie making ‘them look vend or design oviantad thay also want and sometimes ‘demand —to know its backstory. Where was the TV made? Whatisits carbon foctprint How ware the workers who produced it treated? Wat mtrils were usec ta make f? Wars any af hase materials toxin? Where cil the raw materials used to produce the TV.com from, and under what circumstances were thay exracted-ina deathtrap of ming? And what happens when you throw it away? What harm othe planet and people wllteause? When the backstory of products moves to the frelon of the ralstionship with conzumersit imposes a now realty on brands, in which the advertised story na longer tans lone: the market talks. you 29 understand these ieeues, the Eackstoriee wil catch up with you. Whether intertgnal o not, when yout advertised story doesnt match your ‘backstory it s:commonly known as greenwashing Wh an increasing demand fr companies to be accountable for their ‘ervrcrmontal impact, both from legislators and consumers, more ‘companies are beginning to change thelr dafntions of costs and revenues to include the cost tothe environment and people. Fumo iz among the big players wha have gone the furthest in meaauring their impact on the envicanment. In 2010 the company, together with ‘consultancy frm PwC, found the cost of ts impact on the environment in terme of carbon omissions, water, land use, sit polation and wart tobe €145 milion, These calculated costs canbe compared to Purale nat earnings of 202 millon for that yaar As Jochen Zeit, CEO of Pura, ‘says, The business implications of fang to adds nature in daccion- ‘making are clear ~ since ecosystem servis are vital tothe performance ‘of most companias,intograting the tru cost for thasaeorvces inthe future could hve significant impacts on corporate bottom line Anather example isthe glebsl carbon trading system, which puts a value ‘onpolltion. Compan are given fired quotae of carbon emisions and if company emits less carbon than the quota and thus pllutes less it ‘can sll tho remainder of tha quota to a more heavily polluting company. b's a great way af incenthizing businesses to behave better and to keep _2capeon global carbon emissions ‘One ef tha brand that share its carbon effort with consumers ie PepsiCo's Topicana, They have introduced carbon labels on their ‘da, Weds Koma Ltn pas 2-2) ‘ange of juices and succeeded in turning carbon emissions (a cost for ‘companias) into 3 communication thet connects with shoppers and ‘might even push sales or delver a premium price. Information lke this Js most often hidden in a report but, communicated in this way, becomes a potential treasure chest fara brand auch a Tropicana, ‘There ne doubt that ab s00n asthe Yue costs to nature have ta be paid by compari either forced ypon them by mindful consumers, bby regulators or by inevitable price increasos on resources - chang will happen and those who are ahoad ofthe curve willbe the winners, Itshouldet come as a suprise to you that our current way of Iving is at ‘swith our planet and for the most part also ourselves and ou fellow humane. Our eapitalie system is but on the idea of growth asthe key todelivoring highorstandarde of ving. The eal paradox is that our grout is dapendent on natural resources such as fore fuels, but these resources aro thamelves fine. Kt issimple: endless growth based on limited resources is nat possible. | hink this old Cree Indian provers has 3 cunning orssight tot ‘Only whon the last tres has died and tho last river boen poisoned and the let ch boon caught wil we reaizo wo ‘cannot eat money’ We aroady nged more resources than we have, omewhore around 15 planets, 9 sustain our currant lifestyle, tho worlds curent population of nearly 7 illon people were to have the same lifestyle as Europeans we would need three planets —or five ‘they acpre to ive lie the Americans, And why chouldnt they arbre tothe same standard of ving? Why should consumers care about your brand? ‘Consumers have lot faith in brands Havae Mads undertook» glob consumer research stud called ‘Brand Sustainable Futures, and looked continents and nine markets, The ay that they don’ survive or not. n my opinion this ie 2 shocking ons that there isa lot of work tobe done in rebuilding ro the disconnect should consumers then care about brand? feared about. Why nds oations and going bayond legal ‘aquitements in minimiaing pollution and other nagative eff Afonso Rodés Vila, CEO of Havas Media, ad to these findings: "Banc Sustainable Futures highlights that sustanabiity sno longer about out survival. Companies mast embrace sustainability ‘ebusiness and stat developing afd dialogue with summers andlother kay nat nribute to a meaningful purpose, is in society so that Unfortunately, research from the Natural Markating Institute in 2011 showed that brands cil hve along way to go: 41% of American wh ying about their vironment This. o diferance ‘answers state, donb forts to ‘companios ae th hints 3 tween cansumer intent and their actual behaviour when it comes to uying sustainable producta Again, there i alackof trust Brands are left with the tak of rebuilding their relationship with consumers, with regaining trust by making 2 ral cffarence for people and the plant. longer enough to say that you are deing good: consumers must 208 it feel itand believe Iisa bbe ble making dif hoice, but a mattr of curva. This il free br Mant steps from profit to purpose, They will have to: This introduce take three imp Get naked Get together Get out there With greater power comes greater responsibility, A inde must mot the s consumers expect mors from brands hae traditionally been about maximizing profit, but iin a more sustainable model is growing not only in small but also in big global conglomerates such as Nike, al Electric and Urileve wequence af businesse beginning to realize change needs to happen as ther incame threatened by 2planetin resources, The average consumer expects brands to provide solutions and bshave resnonsibly. “This chalanges the old ules of the marketplace. | uggest tan ‘needs. Busin today Thisieac guidelines that can help companies put their best foot for In order to tay relevant, a brand should be traneparont, connected, imple, cal , coma ‘contagious, generous, insightful and positive ay. Inthe last few decades cos have grown into global conglomerates, and with greater reach thei power has became immense, cutmuscling th Today, 51% ofthe world’s largest economies are corporations, and these he worlds biggest employers. Added to Brands have a large par ‘of many governme that brands touch every aspect of our lives through the products and sorvions wo use. Every second of every day 10,450 soft drinks made by Coca-Cola are consumed, Think ofthe possibilty if some ofthat corporate might wore used for good Creativity is the single biggest point of difference Inthe debate about anew responsible revolution ~in the articles, on the blogs and on the bookshelf a call for creative communication seemsto be missing. There should be a frm belie thatthe advertising industry can make 3 eal, world-changing diference.Ithink we should push fr this again and again. Anyone in the communications industry has a pivotal role to play and, snes the industry played 23 part in bulding and eotting in motion the wagon of consumerism ‘and capitaliem that is now driving us towards the edge ofthe elif, ‘we shauld help aolve these worldwide prablems ina responsible, Sustainable and engaging way: Nat only do we know the market and the consumers, we alo have an abundance of skill, We have but brands stronger than nations, We have built such strana relationships with avery litle boy andl gic fram Copenhagen to Cape Town that ‘hay can tall you why brand Xs hettershan brand. The werk we put ‘out there can either holp make tho word a better place or rsinforce ignorance. I's time to stand up as professionals and dare to put your talonts to good use, If t's not good business then it's no good Unfortunately, ur hearts and wallats don't always spaak the same language. We might have an idea about what we should do, but ‘our actions ars in many cates stil riven by price, convenience and habits. People often change their behaviour because of rising fuel prices or thar costincentives.| think this sa consequence of cur {spitalist market thinking, in which money fe king and time is money. Inthe sense most people and mest companies aren't so diferent money rulos. ‘There are people who ate stil sceptical about companies doing good with their marketing effats, with their products or just in general Tam often confronted with the question: is this simply a very eyrical ‘way fr companies to sell more? Yes, one hand is helping starving

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