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Marketing Through Volatility: Key takeaways from the most-awarded work of 2020

Many advertising and marketing industry awards were paused in 2020 but not all; a new WARC report, Marketing Through Volatility,  uncovers insights behind some of the world’s most-awarded campaigns of last year  – for creativity, media and effectiveness – and examines the strategies of brands that were notable in their response to the disruption of the past 12 months.

Marketing Through Volatility has been compiled using the WARC Rankings proprietary methodology.

Eight key takeaways

1. Urgency can create a space for innovation

The urgency to respond to the events of 2020 created a space for innovation for some brands, which pivoted their creative ideas while remaining highly recognisable.

2. Successful brands retain their authenticity through crisis

The most awarded brands have a strong sense of their brand, and they stay true to this in their messaging.

3. Bravery and risk-taking is often rewarded

The most awarded brands are commonly brave brands: brands that take risks and challenge category norms.

4. A strong brand purpose is sustained and consistent

2020 put a lens on the authenticity of brands and their overarching purpose. Many marketers are convinced that their consumers now prefer brands with a sustained, consistent purpose, applied across media.

5. There is opportunity in continued brand investment

Whilst there’s been a shift towards performance marketing over the past 12 months, evidence abounds that brands that continue to invest in brand-building through recessions see success.

6. Customer-centricity enables a rapid response to change

A focus on the customer has made it easier for brands to detect and respond to changes in consumer behaviour during and post-pandemic.

7. 2020 highlights the need for scenario planning and agility

The most awarded work of 2020 highlighted the benefits of scenario planning and being agile enough to pivot in the face of challenge.

8. Successful media strategies lie on a solid data bedrock

The need for solid first-party data strategies was accelerated by the pandemic, when the ability to target customers using connected and digital channels was paramount.

The full 2021 WARC Rankings  – Creative 100, Media 100, Effective 100  – will be released in November to allow the inclusion of a full set of show results, including those that were postponed or cancelled in 2020.

Three-fifths of Southeast Asians use social networks to learn more about brands and products

Social networks and search engines are the most popular sources used to find information about brands and products in Southeast Asia, according to survey data from target audience company GWI.

Why it matters

E-commerce has surged in the last year and people are increasingly comfortable completing purchases within social networks and brands have an opportunity to meet demand and drive awareness through shoppable media.

For partnership opportunities in Southeast Asia, collaboration between digital platforms, such as social networks, and businesses can offer cost-effective and technological advantages.

Takeaways

• Three-fifths (60%) of consumers use search engines to learn more about brands and products.
• Consumer reviews are also popular sources of information for half (48%) of Southeast Asians.

Sourced from the latest edition of the WARC Spotlight Southeast Asia series, which covers how brands in Southeast Asia can develop effective marketing partnerships for growth. The full series of articles is available here.

Senior Chinese consumers are digitally engaged

Older consumers in China present brands with significant business opportunities because they are becoming more tech-savvy and now embrace smart products and digital campaigns - . In other words, when it comes to digital offerings, China’s “silver” citizens have moved from being passive users to “active consumers”.

That is according to a new study by Wavemaker, the media agency network, and Nestlé Health Science. Entitled Embracing Spring of the Silver Economy, the findings are published by Campaign Asia.

Why it matters

The number of smart products and services designed for seniors tripled between 2018 and 2020, while in 2020 alone 1,908 start-ups set up in business to cater for older consumers. Wavemaker estimates that the annual spending of senior citizens from tier 1 to 3 cities in China is worth Rmb 6.64 trillion. And it is forecast there will be 300 million senior citizens in China by 2025.

Key findings

• The urban silver generation has become more confident and is investing more in personal appearances and skin management.
• They already use more diversified smart technology products, such as water purifiers (50%), air purifiers (39%), Bluetooth earphones (38%), tablets (36%) and cleaning robots (26%).
• They also use various apps to make their life easier, such as for online payment (71%), online shopping (59%), maps and navigation (51%), life services information (41%) and ride-hailing services (34%).
• Older Chinese consumers are also less worried about ageing and have more expectations for life after retirement.
• The market for senior citizens is still imbalanced with not enough supply; specifically, sectors like health, beauty and fashion, travel and financial services still need to provide exclusive products for silver consumers.

Sourced from Campaign Asia

YouTube is social media’s big winner during pandemic

YouTube and Reddit were the social platforms that gained most over the past year, according to a survey by the Pew Research Center.

The details

A survey of more than 1,500 US adults conducted by the Pew Research Center between January 25th and February 8th found that only two social media platforms had experienced statistically significant growth over the pandemic period: four-fifths (81%) of American adult consumers now say they use YouTube, up from 73% in 2019; Reddit, meanwhile,  increased from 11% to 18% over the same period. 

Facebook’s growth has levelled off over the last five years, but it remains one of the most widely used social media sites in the US, with 69% of adults saying they use it.

Key findings

• Apart from YouTube (81%) and Facebook (69%), the most popular social media sites for US adults are Instagram (40%), Pinterest (31%), LinkedIn (28%), Snapchat (25%), Twitter (23%), WhatsApp (23%), TikTok (21%), Reddit (18%) and neighborhood platform Nextdoor (13%).
• However, a majority of 18- to 29-year-olds say they use Instagram (71%) or Snapchat (65%), while roughly half say the same for TikTok. In addition, fully 95% of this age group say they use YouTube, along with 91% of 30-49s and 83% of 50-64s.
• The respective shares of Americans who report using Instagram, Pinterest, LinkedIn, Snapchat, Twitter and WhatsApp are statistically unchanged since 2019.
• Hispanic Americans (46%) are far more likely to say they use WhatsApp than Black (23%) or White Americans (16%), while women continue to be far more likely than men to say they use Pinterest (46% versus 16%).
• Seven-in-ten Facebook users say they use the site daily, including 49% who say they use the site several times a day; YouTube is used daily by 54% of its users, with 36% saying they visit the site several times a day.

Key quote

“In a pattern consistent with past Center studies on social media use, there are some stark age differences … and these age differences generally extend to use of specific platforms” – Pew Research Center.

Sourced from Pew Research Center

80% of postponed major purchases to be made within one year

One in two American adults under 50 have deferred a major purchase due to the COVID-19 outbreak, according to the latest data from Nielsen. Plans to purchase major products, those over $500, have not been cancelled completely, though.

Why it matters

Consumers have reported feeling positively about the pandemic withdrawing in 2021 and giving space to a normal lifestyle – 56% of those aged 18 to 34 are optimistic they can resume their normal activities in 2021 and this jumps to 62% for consumers aged 35 to 49.

As less than 5% of Americans have decided that their major delayed purchase will never be made, there is the potential for strong consumer activity when restrictions are eased. Brands should look to capitalise on this rise in demand.

Key takeaways

• Almost 80% of adults aged 18 to 49 plan to make postponed purchases within one year of restrictions being lifted.
• Two in five (40%) adults want to buy or lease a car in the next 12 months.

Sourced from Nielsen, WARC Data

Voice tech usage picks up in India

Indian consumers are increasingly adopting voice technology, a new report finds, with voice searches in Hindi, for example, rocketing 400% in the past year. 

Why it matters

Though the increase is admittedly from a low base, GroupM’s Voicebox report argues that it is set to become a vital medium of communication, with opportunities for marketers in urban and rural India. 

Details 

• Almost all of India’s 574 million active internet users in 2020 are using a phone and voice search via this device has increased 270% in 2020.
• Six in ten users in general use Google voice assistants on their phones. Multilingual Indians often find voice easier and faster than typing.
• Four in ten users are interested in voice features to help them use their favourite app.
•  For younger people, using voice is a way of life – especially for entertainment and information gathering.

Soundbite

“Indian marketers and media planners consider this as a huge and scalable market to tap with the ample opportunities present in this sector” – Prasanth Kumar, CEO, GroupM South Asia. 

Sourced from Exchange4Media

Sponsored gaming viewing boomed in Q1

The number of hours of sponsored gaming livestreams watched has more than doubled, a quicker rate of growth than for non-sponsored gaming content during the same period, according to data from gaming analytics platform Stream Hatchet.

Why it matters

Consumption on gaming-oriented streaming platforms like Twitch saw rapid growth last year, and more brands are tapping into this trend. Stream Hatchet adds that among non-gaming brands, auto insurance quote database Compare.com sponsored the most popular stream. Mobile company SIMPLEMobile follows and music streaming platform Spotify placed third.

Takeaways

• The volume of sponsored streams grew 88% in Q1 2021.
• WARC's research of over 1,000 marketers finds that 38% expect to spend more on gaming formats in 2021.

Sourced from Stream Hatchet, WARC Data

Inside Intel: learning from the chipmaker's recent failures

A new report explores how the US chip giant, Intel, fell behind a market in which it had been leader throughout most of its history; businesses, and especially their marketers, should take note of the story.

Why it matters

Though semiconductors and chipmaking are some of the most B2B products around, there are lessons in humility in the story of Intel and a cautionary tale for why leaders should listen to their marketers. They don’t just pump out messages, after all, but understand the market into which they sell. Those same marketers also need to be able to convince senior leadership of the strategic importance of what they report back. 

Details

• An icon of American manufacturing since the 1960s, Intel pioneered the modern chip industry and in the 1990s and early 2000s surfed a wave of growth that came with the development of PCs and laptops. Its sonic branding reminded consumers of its presence inside these devices. 
• Its position was shaken when its largest customers, including Amazon, Apple and Microsoft, starting to design their own chips.  Apple awarding the contract for its iPhone chips to Samsung marked a turning point as Intel continued to focus on a large but now-mature market.
  
• In Q2 2020, the company was telling analysts that it might have to outsource production to hit targets, letting slip its key selling point and admitting a fault.

What went wrong 

• The recently-ousted senior leadership that replaced influential CEO and chairman Andy Grove brought with it a different culture, one that was far less open to accepting advice and constructive criticism on potential problems. “Limiting the truth is death for a complex company like Intel,” said one senior executive.
  
• “Ultimately, according to several people with knowledge of Intel’s strategy and operations, the company was never willing to divert its production and design resources away from PC and server chips, and its mobile efforts suffered as a result,” Bloomberg reports.

What next 

Intel continues to focus on engineering expertise, building new factories and investing more than $20bn to break into the foundry business and become a contract manufacturer.

Sourced from Bloomberg

Social media use grows in sub-Saharan Africa

Africa’s marketers face a balancing act in terms of media allocation as a recent survey suggests that more people are spending time with social media than TV but trust what they see on TV ahead of what they find online.

Why it matters

Brands need to be where the eyeballs are, but they also want to appear in a trusted environment that engenders consumer confidence.

The details 

A GeoPoll online survey of 999 people across Ghana, Kenya, Nigeria, South Africa, Tanzania and Uganda found: 

• 55% accessed online media channels every day compared to just 23% who watched TV daily (16% radio, 5% newspapers and print media).
• 72% reported using social media more than they did a year ago; 54% said they watched more TV (54% said they are reading less print).
• Respondents trusted ads on TV more than any other channel: 46% of respondents compared to 30% for the internet and 12% for radio.
• Of the social channels, Facebook was the most popular (45% chose it as their favourite), followed by YouTube (15%) and Twitter (14%) 

Final thought 

“In a society that craves reality, lifestyle images and videos of real people such as influencers were the most popular [types of advert], as well as creatively designed banners” – Frankline Mwenda Kibuacha, digital marketing and outreach manager at GeoPoll.

Sourced from The Media Online

Highly awarded creative ideas are significantly more effective

A new WARC study, The Health of Creativity, shows a disconnect between creativity and effectiveness, but also finds that highly creative campaigns deliver greater conversion.

The Health of Creativity

WARC has analysed the results data from creative and effectiveness awards shows around the world tracked by WARC Rankings between 2015 and 2019. Out of a total of 2,391 creatively awarded ideas, only 18% (431) were subsequently awarded for effectiveness.

The picture changes, however, when considering highly awarded ideas for creativity: of the 415 ideas that made it into the WARC Creative 100 Rankings between 2015-2019, 39% were subsequently awarded for effectiveness, and 17% were also ranked in the WARC Effective 100 – deeming them to be both highly creative and highly effective.

Five characteristics of the best ideas

These 71 best-of-the-best ideas were analysed, with the following characteristics emerging:

• Highly creative and effective ideas are more than twice as likely to lead with TV as any other channel
• More than half (54%) of highly creative and effective ideas use emotion as a creative strategy
• 63% of highly creative and effective ideas aim to build brand equity
• 56% of highly creative and effective ideas drive sales
• Over 78% of highly creative and effective ideas drive social buzz and PR

Carsome taps partnerships to build the brand and forge positive associations

Carsome, the online used-car trading platform, has collaborated with partners from various industries to not only introduce innovation and convenience to its customers but also enhance its dealers’ user experience with the brand and, most importantly, grow the brand.

Why it matters

There are many areas where the experience of buying a used car can be improved for all parties involved, from financing and paperwork to trust and aftersales care. 

Insights

• Collaborations with e-commerce partners Shopee and Lazada attract younger and more digital-savvy consumers.
• Financing and ancillary services partners also help Carsome better understand customers’ consumption habits.
• Such collaborations benefit the brand by allowing Carsome to expand vertically and horizontally.

Key quote

“We started with the bare minimum of creating the right offers and teasers on the e-commerce platforms but we have ambitious plans to deepen and enrich the levels of engagement built on the native features of these e-commerce partners” – Derek Tan, Chief Brand Officer, Carsome.

India’s media sector struggles amid lockdown restrictions

The densely populated state of Maharashtra has been especially hard hit by the latest wave of COVID cases, with new restrictions affecting the media and entertainment (M&E) sector.

Why it matters

Maharashtra is India’s economic powerhouse and the centre of its M&E industry. Tough new restrictions, which include a complete lockdown at weekends, are limiting advertising production work – with creative agencies reported to be struggling to finish clients’ IPL campaigns – and shifting brands into different channels.

The details

• The difficulties of shooting commercials and the search for value are driving spending towards digital campaigns and social media. One trend, agencies note, is rising demand for humour in messaging, and campaigns that are more light-hearted. Another is to break up longer narratives into 15 or 20-second bites to keep viewers’ interest. Saliency and recall are the main aims.
• Curfews and lockdowns have played havoc with Out-of-Home advertising (OOH) – but the leading OOH brands are learning to adapt, say observers. Smarter planning and use of digital out-of-home (DOOH), which is able to deliver more meaningful brand-consumer encounters, are seen as the way forward.
• In-cinema advertising was down 90% last year and hopes of a phased reopening of theatres have now been dashed in many parts of the country. Cinemas were already having to battle both the public’s fear of returning and the fact that many movies’ release dates are way behind schedule.
• The answer to the industry’s woes longer term, many believe, will be AI, which allows ads to be tailored to, among other things, a cinema’s location, ticket prices, and demographic. In the shorter term, most are simply pinning their hopes on the country’s vaccine drive.

Sourced from Exchange4Media, IndianTelevision.com, FICCI

Online video and social advertising to accelerate this year

Advertising on online video and social media will see the most widespread increase in spend this year, following a relatively positive 2020, according to a global survey of marketers by Kantar.

Why it matters

Online video and social media are likely to extend their importance in media budgets this year, while traditional media show mixed results. Cinema saw the most widespread decline last year but newspaper and magazine advertising are expected to see the largest decline in 2021.

Takeaways

• WARC Data's latest forecasts show both online video and social media to register double-digit growth this year.
• Kantar also finds that marketers are focusing more on campaign effectiveness as a result of the pandemic.

Sourced from Kantar, WARC Data

UK set to take on big tech with new regulator

A new regulator aimed at curbing the dominance of tech giants such as Google, Facebook and Amazon has launched in the UK, marking a significant milestone for online market reform.

Why it matters

The key aims of the Digital Markets Unit (DMU) will be to crack down on unfair practices, which can “often leave businesses and consumers with less choice and more expensive goods and services”.

The details

• The first task of the DMU will be to look at whether new codes of conduct could iron out the power imbalances between the tech platforms, digital advertisers and content providers, such as news publishers.
• The launch of the new unit follows hard on the heels of an antitrust probe into Facebook being announced by Britain’s competition regulator, the Competition and Markets Authority (CMA). The CMA earlier launched similar investigations into Google and Apple.
• CMA studies in 2019 concluded that Google has “significant market power in the general search market and in search advertising, and Facebook has significant market power in the social media market and in display advertising”. Around 80% of the £14 billion spent on digital ads in 2019 went to Google and Facebook.

Soundbite

“Our new, unashamedly pro-competition regime will help to curb the dominance of tech giants, unleash a wave of innovation throughout the market and ensure smaller firms aren’t pushed out” – Kwasi Kwarteng, UK Business Secretary.

Sourced from Reuters, Financial Times, CMA