points of view

We believe a leading edge agency should have leading edge views on issues affecting the marketing and research industries, whether that be on brand development, the impacts of social media or the latest in sponsorship research. 

We call it rocket fuel!

FILTER BY All Blog post Thinkpieces
How relevant is ‘social media’?
‘Social Media’ is the current buzz in marketing circles, but how much do consumers really engage with brands on it?
A survey by Baynote of 1000 Americans found that 80% ruled out any social media influence on their shopping habits* – so having a huge number of fans or followers isn't necessarily going to convert into sales. The sceptic in me thinks people might 'follow' or 'like' brands because of some initial interest or incentive (e.g. to take advantage of offers or discounts) rather than really wanting to learn more about what these 'brands' are doing, and I suspect they then rarely revisit these pages again. Maybe truly loyal customers of certain products or companies have a desire to stay up to date on the latest product/company news, but I think the majority who have committed to 'following' one of these brands don't really engage with it. I think it reminds us that consumers rarely think like marketers. I don't believe they refer to Facebook, Twitter or LinkedIn as 'social media' and that that they seldom think of McDonalds or M&S as 'brands'. I use Facebook purely as a tool to stay in touch with friends and family abroad and if a company wants to offer me a free Easter egg or the chance to win an iPad then I'll 'like' their page and take advantage of the offer - but chances are that I won't have spent any extra time engaging with them by looking in detail at their 'fan page' or even visiting their website. Enticing consumers with competitions and discounts won't necessarily attract the right people to your products or brand long term, but it will attract anyone that wants a discount or to win free stuff (and are these people part of your target market?). Social media is by definition, a dialogue between people, so instead of hastily jumping on the bandwagon and assuming a brand needs a social media presence, I think marketers should take a step back and think about why they want a social presence, and then to ensure they have the resource available to monitor and respond to any dialogue that your 'fans' and customers are instigating in order to keep them engaged! *http://www.thedrum.co.uk/news/2012/01/16/survey-finds-social-networks-not-yet-influencing-shopping-habits Rachel Cosgrove All opinions expressed are those of the author and not HPI Research.
Why don't ads last?
I was prompted to ask myself this question when passing the Oxo Tower...

I was prompted to ask myself this question when passing the Oxo Tower. When Liebig took over and developed this building in the late 1920’s they wanted to include a illuminated signs to promote their Oxo brand but permission for the advertisements was refused. Their neat way round this problem was to incorporate ‘windows’ with coloured glass that, to this day, have back lighting and spell the name OXO on each side. Now I have no direct knowledge but I would be pretty sure the stir caused by building the tower increased the fame of their brand that already had a reputation for providing a meaty taste to many who could rarely afford the real thing. Nowadays though, it is part of the fabric - still recalled as the Oxo Tower by most Londoners - but of negligible influence on brand sales. I suggest this neutralisation is a common phenomenon: beyond a bit of trade entertaining, when did the Stella Artois Tennis championship stop having a positive sales effect? When did interest in the Gold Blend soap opera get separated from the coffee? Does our linkage of gondoliers with ‘Just One Cornetto’ still make us more likely to eat the ice cream? There is a real danger of thinking that communication recall and strong brand linkage are necessarily good things. Keeping communication effective means knowing when it is right to move on and it takes very sensitive research to spot the ‘tipping point’. Terry Prue

All opinions expressed are those of the author and not HPI Research.
Technology
Anyone who knows me will agree that I have never been ahead of the curve when it comes to fashion or technology...

The one – completely accidental – exception came several years ago when I purchased an iPod some months before they were available in the UK. I opted for a 5Gb version as it seemed unimaginable that I could ever require any more memory.

I was fondly recalling both my brief moment as an “Early Adopter” and my continued insistence in buying iPods with insufficient memory when my current iPod told me that I had again run out of memory.

The reason for the shortfall was down to my love of the podcast.

Just a few years ago, podcasting was hailed as the next big thing in media, something that would revolutionize and democratise audio output and threaten the future of traditional radio. After a brief moment in the sun….nothing;  podcasting seemed to be forgotten.    

Podcasting though has continued to develop and grow. It is estimated that around 8 million adults in the UK have downloaded a podcast (16% of the adult population, around the same number who have ever used Twitter) and that half download and listen to a podcast every week.  There are similar estimates from America.

Some of the download figures for individual shows are impressive – Adam Carolla’s podcast from the USA (a free daily 90-minute show) was downloaded sixty-million times in two years and The Ricky Gervais Show has now been downloaded over 300 million times since 2005.

One interesting aspect of podcasts (for those programmes that are commercially minded) is the role they may play in advertising.

With over 150,000 podcasts available a month, they tend to cater for niche audiences. At a point where there is legitimate concern that digital media will overload consumers with advertising messages, could podcasts offer a more targeted and trusted alternative?

A study by Edison Research (Consumer Attitudes To Podcast Advertising Study. 2010) seemed to suggest a real opportunity. Speaking to podcasts listeners the study found …

  • Just under 80% agreed their opinion of company is more positive when they hear it mentioned on one of their regular podcasts
  • Over 70% were receptive to sponsorship messages on their podcasts
  • Over a third expressed some positive sentiment to adverts on their regular podcasts as compared to just 6% for adverts featured on their regularly consumed television and radio programmes
  • Nearly 80% agreed that if price and quality were equal they would prefer to buy from companies/sponsors who feature on podcasts they regularly enjoy

In summary, more likely to be positive towards a brand, receptive to their messages and a preference to purchase.

Anecdotally, I would also argue that sponsor recall is also increased. I personally find the stickability of brand names far stronger than for other media.

I believe that recall and brand acceptance is aided by two factors. The lack of advertising clutter is clearly a benefit - the number of messages per hour is significantly reduced as compared to commercial radio.  

The second reason supports the findings of the Edison Research study. The various sponsors act as the podcast audience’s enabler – their investment allows them the opportunity to receive free content they personally value. All the brand asks in return is that the audience listen to 2-3 minutes of brand messaging within a given hour – it seems a fair trade off.

Hosts of podcasts will often openly build on this relationship.

On Adam Carolla’s podcast, Carolla will do his own live reads for his advertisers and sponsors (as is common on America radio).

When talking about his sponsors, Carolla openly talks about the basic economics of the business with his audience – primarily a wildly loyal audience of one of the most valued advertising targets of men, 18-49. He asks them to reward the sponsor for their support by giving them their business or at least to investigate what they have to offer.

His advertisers on his network have ranged from Amazon to Bing, to online brands that can measure their impact through promotional codes (proflowers.com, gotomeeting.com) to newer brands such as Man Grate (a grilling tool), which has reported impressive rises in direct sales due to their involvement with the podcast.

The Edison Research supports the potential impact of this personal advocacy from talent, with listeners claiming to be more four times more engaged with advertising messages read by the podcast host. 

Adding to the attractiveness of the commercial proposition is that the reach and impact can be cheaply and accurately assessed (download numbers, direct call to action measured with a show specific code to enter at checkout).

Despite the potential the podcast opportunity remains largely untapped, with the audience size increasing far quicker than the advertising revenue. Indeed the advertising revenue remains a tiny proportion of online spend (less than 0.2%).

However, if the audience continues to grow (and traditional media’s audience continues to decline) and podcast listeners continue to show a positive propensity towards sponsors, these shows surely offer an interesting alternative or supplementary strategy to intrepid brands. 

Dan Lewis

All opinions expressed are those of the author and not HPI Research.

Wide reaching Super Bowl yet to fully influence UK market
It does not take a rocket scientist to know that the Super Bowl is one seriously wide-reaching juggernaut

From the week long build-up and crazy press conferences, to the corporate tie-ins and highly sought after advertising slots broadcasting to over 110m Americans – It’s a serious business, but it’s also an innovative one, which often show glimpses of the future of TV advertising. 

Given that it costs $100,000 a second to advertise on TV during the Super Bowl itself (a 20% increase on last year), it’s no real surprise to see this year that ads were encouraging viewers to tweet about their brand with hash tag prompts at the close of the creative, to make it work a little bit harder (and for longer).  Audi were the first to do this in 2011 and continued their Super Bowl advertising innovation this year with an ironic Twilight-themed commercial that not only trended on Twitter, but had 6.5 million YouTube hits inside 48 hours and various social media spin-offs on Facebook and the like.

So how does this and can this influence the UK?  Well, X Factor is about the closest the UK comes to country-grinds-to-a-halt TV – Audi (again), dairy giants Yeo Valley and Muller and British stalwart M&S have all had very memorable recent slots, but a formula for success which the Super Bowl has (ie. obscure messaging and the brand not taking itself too seriously) has yet to emerge for the UK market.  Indeed, these brands with seriously hyped ads during X Factor have had, to be honest, pretty mixed success.

While advertisers may want to create a Super Bowl equivalent on this side of the pond, I think the UK might just remain an enigma.  X Factor viewers remain demographically skewed towards females and 16-34s, while the Super Bowl audience is hugely varied.  Other massive events like the World Cup only come around every 4 years (and, let’s face it, often don’t last too long) and are frequently broadcasted by the BBC to some extent anyway, much like 2012’s biggest event.  We also suffer from having a number of ads which aren’t made for the British market. 

What we should look to do is take some of the best bits from the new Super Bowl ads each year, like the increased online interactivity we saw for 2012.  Oh, and while we’re at it, probably try to get on board with this slightly strange egg-chasing game – It certainly seems here to stay.

Tom Wakeman

All opinions expressed are those of the author and not HPI Research.

Why leading with emotions is important for all advertisers
Mass communication has to be emotional if it is to reach everybody.

If you think about ‘rational’ communication there will always be a problem of different levels of receptiveness across subgroups:

  • Information requirements grow as we move nearer the point of purchase and thereafter decline
  • Some people have a inbuilt preference for more factual support than others because they are petrol heads, computer geeks, domestic goddesses or whatever turns them on
  • Some people are just more comfortable taking in facts and exploring detail, as witnessed by a desire to read a ‘quality’ paper’ rather than a ‘red top’

Making your case through the emotions neatly sidesteps these problems because we can all respond - wherever we are in the buying cycle and whatever our proclivity for absorbing rational information. The nature of much emotional response is that it is beyond our control to avoid being affected - it goes straight through!

Does this pose a problem for communication response research? Not in our experience, because within commercial probabilities (i.e. excluding wider emotional events that may cause trauma) an emotional ‘hit’ will not be hidden from our rational selves. We know when an ad has really moved us and will respond accordingly if the research is sensitively conducted.

This is not to decry the value of recording direct biometric responses per se but to give context - the depth interview, the focus group and a good quantitative survey are still quick and effective safeguards against putting large budgets behind ineffectual work.

 

Terry Prue

 

All opinions expressed are those of the author and not HPI Research.

Mobile schmobile
Is “mobile” shopping mostly done by couch potatoes?

Latest report from IBM says that 13% of online Christmas shopping in the US was done via mobile devices, up from 4.5% a year ago. The majority of these transactions came from iPhones and iPads. However, is ‘mobile’ a rather optimistic term to use for this channel? How many of these transactions came from consumers actually out and about, standing in a shop, riding the bus, waiting for a friend in a bar?

Alas, the way the data were collected meant IBM couldn’t ask the killer question: “Where were you when you placed your order?” My hunch is that a goodly proportion would have said ‘on the sofa’. We know from other US research that over 60% of iPads never leave the house. So why the huge increase in m-commerce, apart from just the sheer availability of the devices? For me, being able to shop from my phone or my tablet means I can shop in private with no one looking at my browser history or looking over my shoulder. Even better, with John Lewis click and collect, I can slope off to Peter Jones and bring back the goodies when I know Him Indoors isn’t around. No more battles with Yodel/Home Non-delivery Network, and fewer brown boxes eliciting comments from our ever-vigilant receptionist.

And another thing: shopping from my tablet or phone means that behavioural ads then don’t follow me around the rest of my browsing. (Yet.) Again, I don’t think Him Indoors has cottoned on to the fact that sites such as telegraph.co.uk is showing him the edited highlights of my browsing history for various purveyors of footwear and handbags.

All in all, great news for advertisers. Your customers are now slumped in front of the telly with their iPad, tweeting their views on the nude scene in Sherlock, all ready to click across to an offer, a competition, or just find out more about your newest washing machine/fabric conditioner/cold remedy. So, forget about the fact that it’s being reported as ‘mobile’ and just consider it another way of pinning consumers to the sofa with interesting content, relevant offers and an easy-to-use experience. Oh yes, and plenty of stock!

Source: http://www.zdnet.com/blog/reference/ibm-reports-a-big-rise-in-mobile-shopping/256

Sarah Ramanauskas

All content my opinion and not that of HPI. Or my husband.

David Iddiols, Brandalysis
Fresh perspectives redefine brands in the recession

Click on download to view pdf

David Iddiols, More than just an eye for the Eye
A high profile attempt to create a holistic identity

Click on download to view pdf

Martin Dinkele, Driving Footfall
Revitalising consumer growth and retail innovation in the licensed trade

Click on download to view pdf

Kate Halliday and Matthew Coles, How to measure Experiential Marketing
Measuring the hard and soft sides of experiential marketing

Don't just take our word for it...

The team were thorough, knowledgeable and responsive.Elizabeth Mason, Weetabix