As marketing clichés go, few are as firmly embedded as Gen Y’s technological savvy, or their parents’ doltish inability to master the text message. But new research from McKinsey & Co. reveals that this divide is growing faster than many marketers realize, and that important insights about behavior, such as Gen Y’s greater willingness than those over 35 to pay for online content, are getting lost in conversations about technology. Ewan Duncan, a principal in the Seattle office of McKinsey & Co. and co-leader of its Consumer research, tells Marketing Daily why the separation of generations is accelerating, and what marketers need to know. Q. So you’ve now looked at 100,000 consumers, across 15 countries. What’s surprising to you?A. The general patterns of our research support what people are seeing and saying about, for example, the rise of social media, the rise of mobile, and that people are using voice less. But certain groups are using it a lot less -- and that phrase, 'the future is already here, it’s just unevenly distributed,’ applies. If you look closely at the youth segment, they are already quite different than the rest of us. Q. How so? A. Well, they have laptops. But their primary computing device is their smartphone. When they communicate, they are likely to do it through text or video, not voice. They think email is slow and dumb. They don’t sit and watch TV -- they snack on video as they are doing other things. Q. What does that mean for marketers?A. Well, many of them don’t have landlines or watch normal TV, and that is quickly becoming the norm. Marketers need to be on the right side of that behavioral change. Q. Could you explain what you mean by device convergence? A. Your phone is becoming your digital Swiss Army knife. It is a still camera, a video camera, a screen for playback, a GPS. And companies will bake more and more technology into these phones. Some of these larger phones with bigger screens are better for video, but not so easy to hold up to your ear. Q. Isn’t that odd? That phones are becoming less like phones?A. I don’t think so. People use voice less and less, and I think it will continue to decline. Video calling is the big hidden trend, and younger users rely on their mobile devices when they can’t talk, like when they’re in class or at work. They are communicating more, but talking less. Americans talk much more than people in other countries. Q. What else are marketers missing? A. This group’s willingness to pay for online content. Our research found that those under 35 are 1.6 times more likely to pay for online content than those over 35. That could mean purchasing an app or a subscription, but I think we’ll see more companies moving toward a business model that addresses this.
Chevrolet last week launched a program on the influencer-ranking network Klout. The program offers influencers in technology, social media and environmental topics a three-day loan of the 2012 Chevrolet Volt. In this third partnership with Klout, Chevrolet is targeting six markets nationwide, with Klout influencers required to have a Klout score of 50 or better in social media, technology or the environment and live within a 30-mile radius of the markets. The effort is in Denver, Los Angeles, San Francisco and Seattle from April through June and Chicago, Los Angeles, San Francisco and Portland from July through September, per Chevrolet. Last September, Chevy did a test program for Volt on Klout involving the loan of four Volts to 20 Chicago social media influencers. In November, the automaker used Klout to promote the Chevrolet Sonic compact car in five cities with 130 consumer loans in five weeks. Chevrolet says it got 16,000 positive consumer mentions on social media; user-generated videos; three requests to take advantage of a special discount and one confirmed purchase. For anyone who's been following the Volt contretemps the electric vehicle has become something of a lightening rod for the right (no pun intended), who have used the car to disparage the Obama Administration for funding a boondoggle. Most people in the auto industry don't see it that way, as the car is a pretty amazing feat of engineering. Chevrolet is positioning the vehicle with as an electric car with gas when you need it. How is it selling? While General Motors said it sold a record 100,000 vehicles that get at least 30 mpg last year it missed its 10,000-unit Volt sales goal for 2011. The company set a 45,000-unit goal for 2012, but only sold1,626 of the cars in the first two months this year. The company has production cuts planned to lighten vehicle inventory.
Forget the “third screen.” Tablets are moving into the second-screen position (behind television) when it comes to watching full-length videos (i.e., television shows that are 30 minutes long or longer). “I’ll put it up there as a second screen,” Stuart Schneiderman, senior director of digital research, Viacom Media Networks, tells Marketing Daily. “The transition within these households that seems to be happening is not that it's pulling away of TV, it’s taking over what has been from the other smaller screens.” According to a survey of 2,500 consumers conducted by Viacom, 15% of full-length television viewing is done through a tablet device. About a quarter (25%) of Airplay users watch shows on their tablets, as do 19% of Netflix users and 22% of cable subscribers that have downloadable streaming apps, according to the survey. More than a third of the AirPlay (35%) and Whispersync (34%) users say they watch more programming on their tablets because of the apps. Elsewhere, the study found:
The way to throw a spear really far is to use an extension, which is kind of a lever that fits on the end of the weapon, so you can really wing it. Mitsubishi Motors North America has one of those. The automaker doesn't have a big media budget, but it tends to do campaigns that grab attention because they go to extremes in one way or another. The latest such effort from the Cypress, Calif. company is “Temp Drive,” wherein people get to take a break from work and spend the day à la Ferris Bueller with the new 2012 Outlander Sport (starting at $18,795). The wacky part of this is that consumers are to go to mitsubishicars.com/tempdrive to apply for a temp to replace them at their job for one day. And it gets a little stranger. The temps who will perform the duties for the three people Mitzu chooses for the "play day" will not come from Kelly Girl. Instead, they will include an opera singer, magician, deejay, librarian, meteorologist and rocket scientist. The effort is via agency of record 180LA, which also did the effort that put Mitsubishi Outlanders on the infamous Bolivian Road of Death, among other places. The agency was also behind Mitsubishi Motors’ “Live Drive,” a pure online test drive where consumers could robotically drive a real Mitsubishi crossover. The marketing campaign includes television, digital, social media and public relations. The television spot highlights the features and capabilities of the Outlander Sport that the consumer discovers during his day off. All campaign elements lead consumers to the Web site to sign up. Digital is being handled by Possible Worldwide.
Smoothie King is promoting its functional breakfast smoothies with an integrated “We Power Mornings” campaign that includes a Facebook-based UGC contest encouraging fans to write a jingle. The breakfast smoothies, with vitamins and minerals, are positioned to help customers make healthy choices for the crucial morning meal, and address specific health goals. They include the Lean 1 (“get lean” drinks containing Lean 1 weight-loss powder and 20-30 grams of protein); the Gladiator (“get strong” drinks with 45 grams of protein); the Slim-n-Trim (“slim down” drinks with 300 calories and potassium); and the Yogurt D-Lite (“get going” drinks that are low-fat, all-natural and include protein). The campaign, from Smoothie King agency Saeger Media Group, includes Facebook ads, direct mail, an email campaign to the brand’s “Kingdom”/loyalty program members, social media and public relations. The “Better Breakfast Beats” contest, being run in partnership with Universal Music Group, invites Facebook users who “like” the brand to write a jingle about how Smoothie King “powers their mornings.” Participants can submit a video or audio file, or just the words to a jingle. Entries have a chance to be featured in a future radio commercial, and the winner will receive a guitar signed by Universal Music artist Colbie Caillat. All entrants will also receive a product coupon. The contest is designed as a unique approach to garnering testimonials -– one that combines having fans creatively express how Smoothie King products benefit them and the knowledge that many people also use music as a morning motivator, the brand’s VP, marketing, Bobby Williams, told Nation’s Restaurant News. Williams also reports that Smoothie King’s highest traffic is between 7 and 9 a.m., and that positioning the chain as a “meal” destination has upped traffic considerably, resulting in a 20% sales jump so far in 2012. New Orleans-based Smoothie King, privately held and franchise-based, has more than 600 locations operating in 32 U.S. states, the Caymans and the Republic of Korea. Last year, it was ranked #1 in the juice bar category by Entrepreneur magazine (for the 18th year), and #70 overall on the 2011 Franchise 500 list.
Ikea, Henkel, and Procter & Gamble are the top winners of the 2nd annual Shopper Marketing Effie awards. Shopper Marketing Effie awards focus on integrated marketing campaigns specifically designed to engage the shopper and guide the purchase process toward a desired end result. The agencies behind the winning brands are Saatchi & Saatchi X, Ogilvy & Mather, MEC North America and Zooka Creative.In the manufacturer, loyalty, awareness, sales, trial category, two gold Effies went to Procter & Gamble and Saatchi & Saatchi X, including one for Swiffer "Swiffer Project Jack Co-Marketing Campaign" and a Gold for Always and Tampax "Every Day is Different."In the retailer, re-staging category, a gold Effie went to IKEA, Ogilvy & Mather and MEC North America for "Ikea: The Life Improvement Store." In the same category, the United States Postal Service and Draftfcb won a Silver Effie Award for "Your Other Address." In the manufacturer, single-retailer rollout category there were two gold Effie winners, Henkel and Zooka Creative for Purex "The Art of Shopper Marketing: Purex's Shock and Awe at Walmart" and Procter & Gamble and Saatchi & Saatchi X for Always and Tampax "Every Day is Different." Also in the single-retailer rollout category, a silver Effie went to Procter & Gamble and Saatchi & Saatchi X for Swiffer's "Swiffer Project Jack Co-Marketing Campaign.""The most common thread of the winners was not only solid consumer/shopper insights, but the ability to express need in a way that rings true with the shopper," said Jim Lucas, EVP, global retail insight and strategy, Draftfcb and Shopper Marketing Effie final round judge, in a release.In the manufacturer, multi-brand shopper solution, a silver Effie went to Procter & Gamble along with agency partner Leo Burnett/Arc Worldwide for The Best in Beauty 2011" on behalf of P&G Beauty Scale (Olay, Pantene, Clairol, Venus, Secret, CoverGirl, Fekkai brands).In the manufacturer, multi-retailer rollout category, a silver Effie went to Lifescan Canada Ltd and The Integer Group for "The Power of Knowing" for OneTouch. In the manufacturer, new product/service introduction category, a silver Effie went to Gatorade and TracyLocke for "'Find Your Fit' G Series FIT new product launch at Walgreens."In the retailer, multi-manufacturer shopper solution, a bronze Effie went to Walmart, Procter & Gamble and The Martin Agency for "Walmart and P&G Family Movie Night". In the retailer, shopper loyalty program, Walgreens Co. and agency partners Leo Burnett/Arc Worldwide and Starcom (SMG) won a silver Effie award for "Walk with Walgreens."A summation of total points earned by both the evening¹s winners & 2012 Effie Finalists will be factored into the Effie Effectiveness Index which ranks the most effective advertisers, brands, holding companies and agencies in the world. North American Effie Effectiveness rankings will be announced at the Effie Awards Gala in New York May 23. Complete worldwide rankings by region will be revealed in June.
The term “Engagement Marketing” is enjoying a second coming of sorts. The concept created quite a buzz about three years ago, which quickly fizzled out. In all likelihood, it fizzled because no one really understood what it meant. Engagement Marketing has suffered a case of mistaken identity -- in a variety of different directions. It has been confused with Event and Experiential Marketing, Social Media Marketing, and Participation Marketing. It has even been confused, in some circumstances, with marketing related to weddings. But it is wholly different from any of these things. In fact, Engagement Marketing is wholly different from any form of marketing that has ever been. Think of any non-full-service advertising or marketing agency. The agency in your mind is most likely tethered to -- and largely defined by -- its tactical expertise. For example, a Direct Response Agency will always focus on direct-response tactics; a Digital Agency will always employ an Internet-centric model; etc. But Engagement Marketing lives completely apart from those -- because it is anchored by a philosophy rather than a focus on specific marketing tools. It’s based on the premise that if marketing is to succeed, it must be client- and audience-centric. An Engagement Marketer starts by listening to what a client has to say and where they want to go, then analyzes which current tactics are working and which are not. Next, they leverage data and analytics to take a pulse check of the marketplace and identify their client’s best prospects and customers -- and finally they proceed with developing a strategic and creative approach that will cut through the white noise and change the conversation. Historically speaking, agencies of all types have failed to do this. It’s not their fault; it’s just an extension of their tactic-first nature. Years ago, when I was working at a direct-response agency, we engaged a prospective client who -- it was clear after several conversations -- was in desperate need of strong PR. But the agency had no such service to offer. So instead, the brass had us retrofit its off-the-shelf DR “solution” to the prospect’s unique market situation and sell it as the answer they were looking for. Needless to say, we didn’t win that account. (Only in advertising and marketing does this backward logic occur. Would you ever listen to a plumber pitch you on why he should install your light fixtures?) Again, it starts with listening. Moreover, it begins with empathy: first, for your clients; next, for your target audience. Think of a salesperson who walks up to you in a store. You tell him thanks, you’re okay -- you’re just looking. But he hovers and looms, finds ways to insert himself into your activity, and is a general annoyance. That’s what typical marketing feels like: intrusive and disruptive. Engagement Marketing is the opposite. It’s a salesperson who hangs back and engages you if/when you need help. Who can sense what you want to do, and help you arrive at that decision. Who will contact you directly with exclusive sales information, if -- and only if -- you request it. (The traditional high-volume, low-percentage communication approach is inherently flawed. The average person doesn’t want “constant contact” from her best friend, let alone a company.) Engagement Marketing, done well, means connecting with audiences who want to hear from you, in relevant, meaningful, interesting ways. If you can pull that off, everything changes. It’s a deceptively simple idea. The ability to psychologically connect with an audience -- to move people emotionally and drive action -- has always been paramount to successful advertising and marketing. It’s never been about simple tools or tactics. In one sense, a marketing approach that is based on a philosophy rather than a tactical focus seems radical. (And indeed, it is. Engagement Marketing may result in the industry’s biggest seismic shift since Bill Bernbach ran his first VW ad.) At the same time, the concept seems so obvious, so inevitable, it’s hard to imagine we ever did things any other way.