2013 Predictions Part 2: A Mobile Marketing Pivot Point

In a previous article, I aggregated my favourite predictive articles on where branding and marketing will lead us in 2013. I now want to spend a little more time digging in to specifics. In his article on Five Bets On How Digital Marketing Will Change in 2013, IgnitionOne CEO, Will Margiloff wrote:

2013 will mark a true pivot point when the market penetration of smartphones and tablets will finally cause marketers, publishers and technologists to step up their games in responding to this growing multi-channel, cross-device lifestyle.

Let’s look at some statistics then, shall we? 

Despite incredible mobile penetration worldwide…

• By the end of 2013, the number of mobile devices (including tablets) will exceed the number of people on Earth (Cisco)
• By 2016, there will be over 10 billion mobile devices, creating 10 billion opportunities for marketers
• The number smartphone users is growing by 42% a year, globally (Morgan Stanley)

…especially in Asia…

• The Asia-Pacific region accounted for half the increase in global mobile subscriptions during the final three months of 2012 (Warc) 
• China has passed the U.S. to become the world’s top smartphones and tablet market (Flurry Analytics) 
• Smartphones are owned by two-thirds of Chinese mobile subscribers - providing functionality to interact on a deeper level with brands and social networks (Nielsen) 

...Mobile marketing has been rather significantly under-utilised.

• Mobile accounted for only 2.4 percent of total ad spending in 2012 (eMarketer)
• Only 16 Percent Of Marketers Have A Mobile Strategy (CMO Council)
• The number of online video ads shown in the last quarter of 2012 grew an eye-popping 52 percent compared to the previous three months, but the vast majority of video ads are still served on the desktop (Videology)
• 90 percent of Asian marketers surveyed rated mobile as ‘very important’ or ‘quite important’ to their 2013 plans. However, only 29 percent  of brand advertiser respondents admitted they currently have a formal strategy for mobile (Warc)

This is likely due to a number of reasons…

• Although mobile relationship marketing (MRM) was “the single most investigated, tested and piloted” marketing activity of 2012, concerns over the ability to measure the effectiveness of mobile marketing activity has raised doubts over its ROI (CMO Council) 
• 77% of Marketers report a key impediment to investing more on mobile is the lack of case studies demonstrating best practice available to them (CMO Council) 

...however, we are also seeing aggressive up-ticks in mobile and digital efforts.

• Mobile ad spending around the world more than doubled in 2012, up 220% in US, 40% in Asia-Pacific, 138% in China, and 110% in Indonesia and India (eMarketer) 
• The amount of money spent on advertising on mobile phones will likely more than double by 2016, expected to grow most in Japan and South Korea (Gartner) 
• Marketers will spend 50% of their budgets on mobile by 2017 (Experian) 

In recent study by Warc, Asia-Pacific marketers described the types of mobile marketing they are most interested in this year. 

Asia-Pacific marketers’ key areas of focus in 2013 will be: 

• app development (cited by 49% of respondents), 
• mobile display ads (48%) and 
• mobile-based social marketing (46%). 

I’ll tackle each of these subjects in extreme detail during the Future of Branding series. For other knock-on effects of mobile proliferation in 2013, stay tuned to Part 3. 

2013 Predictions Part 1: Lists!

Properly cited image courtesy of http://oneims.com/blog

2012 saw the start of this Blog, followed by a 4-month pause for academic pursuits. Now that the Lunar New Year is upon us and courses are over, I look forward to 2013.

This first post summarizes my favourite list predictions for 2013. Some have three points, some six, some thirteen! Several of those points receive a closer look in Part 2.

ADVERTISING SPENDING TRENDS

Joe Fernandez of Warc.com revealed their Consensus Ad Forecast results for 2013:

1. Worldwide Growth: Global advertising expenditure is expected to increase 4% in 2013.
2. Emerging Markets Lead: The BRIC economies are set to be the biggest with Russia estimated to experience a 12.3% leap, followed by China on 10.9%, Brazil on 9.8% and India on 8.5%.
3. Online Continues: By channel, the internet is predicted to increase demand in excess of 13% - a moderation from 14.4% last year.
4. TV Maintains: Television ad revenues should rise by 3.2% in 2013.
5. Print Declines: Newspaper and magazine ad sales are pegged to contract by at least 2.5%.
6. Lack of Major Media Events in 2013: “In 2012, the industry benefited from the Olympics and the US presidential election. In 2013, we’re all keen to see how advertising holds up without these quadrennial factors.”

CONSUMER DEMAND & RETAIL TRENDS

It's that time of year again — time to take a stab at what's going to matter in the year ahead as technology continues to influence how we work and live.

          – David Armano, Edelman Digital

Emily Tan of Campaign Magazine passed along JWT's 10 Trends Technology is Having on the Consumer Lifestyle: 

1. Play as a competitive advantage: “Brands will benefit …by encouraging consumers to see their day-to-day environment through a more playful lens”
2. The super stress era: “Response to mounting and multiplying stressors faced by society today …Brands….can become catalysts for stress reduction.”
3. Intelligent objects: “The internet of things is finally mainstream, with more and more ordinary items becoming interactive, intelligent objects” including watches, goggles and glasses
4. Predictive personalization: “With speedier and more affordable data-analysis available, brands will increasingly be able to predict customer behaviour, needs or wants”
5. The mobile fingerprint: “Retailers, handset manufacturers, telecom providers, software developers and other marketers will need to consider how the consumer’s increasingly intimate connection to the phone will change behaviours, sensitivities and mindset.”
6. Everything is retail: “Shopping is shifting from an in-store, physical activity to one that can take place just about anywhere at any time”
7. Sensory explosion: “retail outlets will gradually transition to showrooms that emphasise experiences over selling as online commerce continues to grow.”
8. Peer power: “While online peer-to-peer networks date back at least to the early days of eBay and Napster in the 1990s, the market is now expanding well beyond goods into services, impacting hospitality and tourism”
9. Going public in private: “As living life publically becomes a default, people are increasingly conscious of controlling their personal online brand and have, in turn, come up with ways to carve out private spaces in their lives”
10. Health and happiness: “Less about vanity and toned abs, health is now increasingly viewed to be about happiness, with the rising notion that a happier person is a healthier person.” 

Ad-Age’s special report highlighted What’s Trending in the Retail Industry in 2013: 

1. Shoppable Media: “Video or print vehicles that encourage customers to immediately purchase products using various technologies, will become an increasingly popular way to do that. 
2. In-Store Technology: “Retailers of all stripes will continue to add tablets, digital signage and oversize, interactive panels. 
3. The grass is always greener: “By opening physical stores…online players are welcoming showrooming….As much as consumers crave the convenience of online shopping, there are still times when they'd like to step into a physical location.” 

The art of prophecy is very difficult, especially with respect to the future.

          – Mark Twain

Derrick Daye of Branding Strategy Insider identified 13 critical trends for brand managers in 2013 – although many were true in 2012 as well:

1. The Expectation Economy: “Over the past decade, customer expectations have increased on average by 28%. But brands…have kept up by only 8%.”
2. Me-tail: "Consumers’ heightened awareness of their actual control” means “customization will become an even more important brand differentiator"
3. (E)tail Everywhere: "Online retailing increases daily"
4. Siri-ously Soon: "Voice assistants...will be designed and incorporated into more devices to meet consumers’ increasing expectations for immediate and customized support."
5. The Known and the Branded: "Real brands will become rarer.”
6. Story Telling Tales: Understanding gaps in “how the brand is seen by consumers, can…identify unique stories, histories and tales that will differentiate, entertain, and engage.”
7. It’s Not Going to Get Any Easier Being Green: “Watch for significant increases in total sustainability…in the consumers’ decision process.”
8. Social Susceptibility: “Brands are watching the ‘de-friending’”
9. Mobile Screen Tests: “Brands will need to create carefully targeted campaigns for [mobile] platforms.”
10. App Savants: “Consumers will take greater advantage of applications. But this year those typically small, specialized programs downloaded into mobile devices will move beyond games, GPS, and media, to more personalized applications that monitor, remind, suggest, learn, and know their users’ profiles and preferences.”
11. Facebook Is a Given: “Brands will have to graduate from posting pictures, collecting friends, and/or offering coupons.”
12. Saturation Leveling: “Outreach streams [are] dangerously close to saturation.”
13. Engagement Empowers: “Non-engaged customers are a brand’s most vulnerable assets. Period.”

2013 will be a pivotal year for digital marketers with significant shifts taking place with how we reach consumers. OK, we say that about every year. But this year its true, honest!

          – Will Margiloff, IgnitonOne

DIGITAL MARKETING TRENDS

Ashok Lalla of Campaign Magazine wrote The Marketers’ Outlook on Digital Marketing: 

1. Digital is central to Marketing conversations but still peripheral to Marketing planning: “Everyone accepts that Digital…often, after most of the marketing budget has been committed to television and print.”
2. Digital is seen as a channel of spreading the marketing messages and campaigns: “Most marketers see it as another channel to push out their messages. This leads to the rush to upload TV commercials on Youtube and share press campaigns on Facebook.” 
3. Social media is the newest flavour of Digital: “Determining what real ‘engagement’ is…leaves most marketers flummoxed.” 
4. More numbers is better: “Most marketers …fall into the trap of seeking numbers. And deriving comfort in growth of page views, downloads, fans, followers, shares, likes, retweets…till they realize [they] do little to support their overall marketing goals.” 
5. Positivity tinged with paranoia: “…the paranoia of not being able to cope with an increasingly impatient and vocal audience.” 
6. Digital is the future, but is that future here yet? “This half-and-half mindset of marketers makes it that much harder for them to decide …whether the time is right for them to commit budgets and pride of place to Digital.” 

David Armano, Managing Director at Edelman Digital wrote Six Social-Digital Trends for 2013 for the Harvard Business Review: 

1. The Content Economy: “[Google & Facebook] algorithms are good enough now that the most compelling content dominates search results.” 
2. Cyborg Central: “Google Glasses are just a preview of what we'll see more of in 2013 as we begin to mesh machines with humans.” 
3. The Smobile Web: “Social + mobile…means your customers, coworkers and colleagues expect their digital experiences will be optimized.” 
4. Sensory Intelligence: “Sensors will be everywhere…They will become a part of our lives and will tie into our existing devices and networks.” 
5. Social Commerce: “The idea of social commerce isn't new, but signs indicate that 2013 may be the year it actually begins to coalesce.” 
6. Data Surplus, Insight Deficit: “”There aren't enough qualified human beings (analysts, sociologists, strategists, etc) to mine all this data. But this won't last for long.” 

Thomas Husson of Forrester Research categorized ten of his 2013 Mobile Trends for Marketers in to two major groups: 

Will Margiloff, CEO of IgnitionOne, made Five Bets On How Digital Marketing Will Change in 2013: 

1. The age of the PC is over, so get used to it: “2013 will mark a true pivot point when the market penetration of smartphones and tablets will finally cause marketers…to step up their games.”  
2. The end of speculative money: “The irrational spigot of VC money in ad tech has finally been turned down” Agencies will begin to give up media buying: Letting 3rd-party specialists handle these activities. 
3. Agencies will marry creatives and quants: “Where we are headed is a weird yet ultimately fulfilling marriage between the two” 
4. Data for data's sake will end: “Next year the world will realize it’s useless unless it can be automated and applied.” 
5. Rimma Kats of Mobile Marketer made her Top mobile predictions for 2013: 
6. Context king: Brands will target messaging to those closest to their stores. 
7. Breakout star: “Emerging technologies such as augmented reality will take the lead next year.” 
8. Mobile experiences: “We'll see a big move into more immersive input – a gestural, voice, audio – and output – augmented reality, pico projectors – related to mobile and connected devices.”  

Judy Shapiro of Ad Age offered five points in Get Ready for Five Big Sentiment Shifts in 2013: Redefining Privacy, Reach, Big Data and Trust: 

1. From privacy to control: "It's dawning on consumers that it's best to opt out of most online activities because any online action can unleash a torrent of unwelcome, privacy-busting ads."  
2. From reach to relevancy: "In the rush to reach large audiences, achieving quality engagement sustainable over time is another matter."  
3. From big data to GOOD data: "Platforms deliver great behavioral-based data but they don't do as well at inferring true consumer intent."  
4. From push to pull: "The inflection point is close at hand where consumers may fall off the "creepy cliff" as they are subjected to more invasive and pervasive ads."  
5. From platform-powered to people-powered marketing: "You simply can't platform your way into great marketing." 

While 2011 and 2012 were the years of trial and error, 2013 will help marketers cement their initiatives and better reach consumers. Industry experts agree that the space will gain even more momentum next year. 

         - Rimma Kats, Mobile Marketer

Stay tuned for Part 2 and the Future of Branding series for greater depth.

The Future of Branding: A Series

This past week, I had what was easily the best conversation to date on the future of the branding industry. Sitting with the CEO of a design consultancy, our free-flowing dialogue embarked upon a number of tangents, all on the premise of finding a calling within this vast and changing industry, It brought to mind a favourite metaphor.

When most of us think of surfing, we think of places where oceans meet shoreline, where even professionals consider 35 foot waves "jaw-dropping." 

In 2003 and 2004, documentaries, Step Into Liquid and Riding Giants, exposed the breathtaking world of tow-in surfing. With the help of experts in weather forecasting and submarine geography, riders were able to predict the location (sometimes hundreds of miles offshore) of waves up to 100 feet tall. Such waves - freaks of hydrodynamics - could only be caught if towed into the break by a jet ski or even a helicopter. 

If 100 foot waves are too extreme of a metaphor for the future of branding, a more fitting example may be the "rare surfing phenomena" that produced a tranquil, yet epic, tidal bore a trio of paddle surfers were able to ride for 5 miles and 45 minutes in Alaska in 2010. I could not embed the 1-minute video clip, but it is worth watching. 

Whether waves are 100 feet high or 5 miles long, a lesson holds true for both: It was neither supreme talent nor technique* that made their feat achievable. It was the understanding of how and where to position themselves that dramatically changed the end result. 

Companies face this same challenge. The perceptions, tastes and habits of consumers are changing and they must understand how and where to reach them in order to maximise effectiveness of their branding.

In the following series, I will explore the talent and techniques that remain fundamental to branding, the conditions creating these great waves and the tools required to create a larger (100 foot) and longer-lasting (5-mile) impressions on consumers. 

Stay tuned. 

* Big-wave surfers are among the world's most experienced, but not necessarily the most decorated in professional competitions, while stand-up paddle surfing is considered very easy to learn.

Olympic Branding Part 2: Prioritising Stakeholders & Defining A Message

IOC President Jacques Rogge congratulates LOCOG Chairman 
Seb Coe following the successful Olympic bid in Singapore, 2005 

In a previous post, I explored how part of my pessimism leading up to the 2012 Olympics was based on the logo. It was a first impression I believed organisers and designers got wrong - especially the mascot - but a first impression nonetheless. 

Poor visual identity can still be overcome by delivering on brand promise and providing a great customer experience. In the following series of posts, I look at the other aspects of London 2012. 


Delivering a great customer experience requires a clear message that aligns the entire organisation. That message is formed by understanding the needs of the people most important to your brand.

STEP 1 - DEFINE THE STAKEHOLDERS

The London Organising Committee of the Olympic Games (LOCOG) stated their goal was to "deliver the best possible Olympic and Paralympic Games experience for everyone involved, ensuring a real legacy and inspiring people to join in and truly make these 'everyone's Games.'"

In this case, "everyone involved" includes:

• Athletes - essentially the product on display, but also consumers of the Games - hoping to compete for their countries and gain notoriety

• Londoners - who hope to benefit from a tourism boost in the short-term and infrastructure improvements in the longer-term, not to mention the pride of being a host city

• Visitors experiencing the Games

• Corporate Sponsors -  since over $1 billion was raised from sponsors, these partners hope to gain from publicity of being associated with the Games

STEP 2 - UNDERSTAND STAKEHOLDER NEEDS

During their official bid presentation in Singapore, 2005, Bid Chairman, Seb Coe outlined the three principles that would guide London 2012 organisers:

• "First, we want to deliver...an electrifying experience for competitors and spectators...which distinguishes the Olympic Games from other sports events. And that magic begins with the venues.  

• Our second principle is to be your best partners. IOC members...Sponsors and the media.  

• Our third principle is to deliver a lasting sporting legacy...We can no longer take it for granted that young people will choose sport. Some may lack the facilities.  Or the coaches and role models to teach them...We are determined that a London Games will address that challenge."

More specifically:

• For Athletes -  Denise Lewis, representing the London Athletes Commission, explained “everything athletes need was designed in from day one. Training venues. Security. When a fraction of a second, or a fraction of a centimetre, can be the difference between winning and losing and can change your life...you appreciate that the small details have been worked out years before."

• For Londoners -  Ken Livingstone, Mayor of London, pledged “the Games will dramatically improve the lives of Londoners.”  Prime Minister, Tony Blair furthered: "Our vision is to see millions more young people in Britain...participating in sport, and improving their lives as a result of that participation...But it takes more than 17 days of superb Olympic competition.  It takes a broader vision."  

• For Visitors -  Livingstone continued: "As London's Mayor, I know hat what you want from me is to take whatever measures are necessary to deliver a safe, secure and superb Games."

• For Corporate Sponsors - According to the LOCOG website: "The London 2012 brand is also vital to the funding of the Games and is the London 2012 Organising Committee's most valuable asset. To ensure we maintain both the emotional and commercial value of the brand, we need to carefully control its use and prevent its unauthorised exploitation."

STEP 3 - PRIORITISE STAKEHOLDERS

A brand can't be all things to all people. The needs of certain groups will often conflict, so a company must choose whose needs take priority when conflicts arise.

The motto for London 2012 became 'Inspire a generation,' indicating that the youth of Britain and their future were the major priority. 

STEP 4 - DELIVERING ON THE PROMISE TO STAKEHOLDERS

Only with a firm understanding of the promise to each stakeholder, can we fairly judge the Olympic experience. 

In future posts, I'll begin to grade how LOCOG delivered on the promises it made.

Cautionary Considerations for Brand Names

In a previous post, we explored characteristics of strong brand names - the best are memorable and communicate a message. Having already covered naming categories and features that increase recall, here are a few cautionary steps to ensure your name is remembered for the right reason and avoids communicating the wrong message. 

KEEP IT SHORT

A crucial aspect of a repeatable name is brevity. This doesn't mean all names should be single words, but as a general rule: less is more.  

An oft-cited historical example is Vicks VapoRub, whose sales struggled when it was known as Dr. Richardson's Croup and Pneumonia CureSalve. If there is more to say on your logo or packaging, save it for a tag line. 

ONLY MAKE PROMISES YOU CAN KEEP

This practice holds true in all aspects of branding, not just naming. BP's Horizon Oil Spill in 2010, for example - the worst oil disaster in history - was committed by a company who, a decade earlier, rebranded itself as "Beyond Petroleum" to be viewed as more environmentally friendly. BP was recently found guilty of "gross negligence and wilful misconduct."

Words can have serious consequences. Recent research shows brands that work harder to promote a certain reputation come under far more scrutiny when they fail to meet expectations.  

CONSIDER YOUR CONSUMER

A brand name should be relevant to the education and vocabulary level of the target consumer. 

The name Viagra, for example, uses less complex vocabulary than it's formulaic name Sildenafil Citrate. Simplifying scientific names for medicinal products is a fascinating area of brand naming. 

DECIDE WHETHER TO BE DISTANT OR CONSISTENT

No rule states a good brand name should always stand out. In come cases, you do want a name that helps you to fit in. 

Law firms are almost always named after their founding partners. In this case, a law firm that uses a different naming convention may seem illegitimate or unprofessional by comparison. 

The first step is determining the type of signal you want to send. Given the visibility and permanence of brand names, it may not be worth the risk. Other aspects of the brand can be used to highlight distinctiveness.

A memorable example occurred when the British Post Office Group infamously changed it's name to Consignia in 2002. While intentions were honourable - signalling a new direction after being privatized - manufactured or outlandish names seem more appropriate for pharmaceutical and technology companies:

“Naming a company Google or Squidoo or Blueturnip in the dot-com world isn’t weird. It’s the equivalent of naming your kid Michael.” - Seth Godin

BE ORIGINAL

An overwhelming number of Asian brands include words like "golden," "moon," "fortune," "lucky," "harvest," and "prosperity." While the words have positive associations - key to a strong name - they are so common in nomenclature they are no longer distinct or believable. Other examples include "happy," "excellent," "best," "quality," "top," "smart" or "reliable." Imagine if Sears's car battery was named Reliable, instead of DieHard?

Being forced to think outside of the box is a good thing. Magazine titles Flex and Escape have far greater symbolism than their generic-named competitors, Fitness and Traveller. 

QUANTITY, NOT JUST QUALITY

It's funny how we can sometimes ignore simple logistics. We could find the perfect brand name, but if a “.com” or “.org,” domain extension isn't available, we might end up driving business towards a competitor. There is also the minefield of trademark restrictions to navigate. 

By some measures, less than 5% of names submitted for trademark pass an availability screening. 

A few strategies can help circumvent this challenge: 

• Generate as many ideas without judgement as possible during brainstorming so you can easily return to previous ideas
• Intentionally misspell words in your product's name ("Froot" instead of "Fruit") 
• Transpose words in the name to create a different order

CROWD SOURCE

The end consumer will tell you if it sounds pleasing to the ear or otherwise, so make extensive use of focus groups and outsider opinion. 

At the end of the day, it matters more what consumers think about your brand name than analysts and executives. 

TRANSLATE

If a brand is global, it must consider the meaning of its name in every country it does business. This particular item is one I will explore at greater length in a future post. 

Why the Odd Working Title?

Brand naming is one of the most difficult tasks in branding. 

A well-chosen name - or in this case, blog title - can communicate positioning with little explanation, while a poorly chosen one can confuse the target audience. 

Even though it's not at all creative, at least the current title for this site does communicate a message:

• This is a branding blog 
• A title has yet to be determined
• A title will be chosen at some point 

The mission of this blog is to take you through the process of branding. Therefore, I intend to take you through the process of naming as well. 


I will divide the process of naming into three initial steps: 

1. Exploring the naming and mnemonic devices that make brand names expressive and memorable
2. Highlighting cultural and other pitfalls in brand naming
3. Beginning the process of naming this blog by working backwards from the premise

The third step is obviously the most important. Before considering a visual and verbal identity, a company must first be clear of its promise to customers and what makes it unique. As such, the first steps before naming my blog have been to: 

• Outline my personal background and ethos
• Articulate my vision and mission
• Write a few posts to get a feel for my own style of writing, and
• Understand more clearly what I think will make these pages unique in the blogoshpere

We're ready to begin.