A New Weapon in the Dentsu Group s Advertising Arsenal Leading-Edge Companies on the Digital Front Line

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1 Special Feature 3: Dentsu s Digital Capability A New Weapon in the Dentsu Group s Advertising Arsenal Leading-Edge Companies on the Digital Front Line &c. created the first integrated marketing platform and our own Digital Communication Dashboard. Thanks to our remarkable innovation capabilities, &c. has developed into a leading agency in China s digital advertising market, gaining tremendous recognition throughout the industry. Jenny Zhang Chief Operating Officer &c. 2. Overview of &c. and its standing in the digital domain How would you describe your company in a word? Integration. With strong integration capabilities, the Internet has become increasingly involved in the everyday lives of consumers, which has created infinite opportunities for marketers. Internet marketing cannot just rely on various tools or approaches; marketers must be able to integrate the disparate bits of information and data to effectively obtain an accurate picture of consumers and their everyday lives and market and societal trends. Therefore, integration is the key to leveraging &c. s fundamental capabilities. 1. Business domain and marketing capabilities &c. is a digital communication agency dedicated to serving its clients and consumers, specializing in a broad range of marketing capabilities. We use digital media and interactive communication technology to provide full-cycle relationship management of brands and consumers, from A (Awareness) to L (Loyalty). In the past 13 years, &c. has been providing digital strategy consulting and media placement services to more than 50 clients from China, Japan, Europe and the Asia-Pacific region. Over this period &c. has developed into a leading digital agency in China. We ve created a number of technologies for digital marketing, including flash technology, and we employ these technologies in China s digital advertising market. We also utilize Media Chooser, a media optimization tool that is based on historical data. Moreover, as China s first 4A agency, we have What are &c. s competitive advantages? Association with the prestigious brand of Dentsu and access to its vast resources Top-flight digital marketing team that is at the forefront of the digital advertising market in China Powerful decision-making tools and leading-edge technological support In-depth understanding of the Chinese market and proven localization experience Where do you see your company in five years? We will remain in step with the ever-increasing changes in consumer life and communicate with consumers at more accessible points of contact. Further, we will align our efforts with the developments in digital media and interactive technology to build a complete communication cycle. We will also strive to build sustainable customer values through continuous communication with our target audience. Special Feature 3-1/6

2 3. How do you envision the future of China s digital market? China s digital market has changed dramatically in the past 15 years. Over this time &c. has grown to become a proven leader in the industry and has in fact driven the development of the digital industry in China. I foresee another digital revolution in China in the next three to five years, and I believe it will involve two key aspects: First, changes in lifestyle with the development of mobile devices will drive innovations in media and communication marketing. Given this scenario, &c. is devoted to developing independent products and platforms in conjunction with mobile media alliances and APP marketing. Second, online data has accumulated to such a level that data mining and artificial technology, which are based on Big Data, will greatly affect digital marketing. The traditional agency model, which relies on artificial assessment to choose and buy media, will be replaced by artificial intelligence and real-time bidding (RTB) platforms. As a result, &c. is working on building a digital communication dashboard that is based on the Media Chooser system. This new system has realized data mining, retargeting and segmentation capabilities. Restricted by China s media marketing regulations, the RTB buying model can only be applied to some media now. However, we believe that changes in consumer trends and technology innovations will eventually transform China s social landscape. unbound by traditional values. We are constantly exploring new possibilities in the pursuit of innovative solutions for our customers. Headquartered in Beijing, &c. has two branch offices, one in Shanghai and the other in Guangzhou, with a workforce of 200 employees. In the past 13 years, &c. has been providing professional interactive marketing services to more than 30 brands from 12 different industries, half of which are Fortune 500 companies. Our clients are outstanding industry leaders, and include Toyota, Honda, SVW, BMW, Benz and Hyundai. Other key accounts include Lenovo, Canon, Amway, Master Kong, Wang Lao Ji, among others, and are all leading brands across a variety of industries. &c. s marketing expertise has earned the company tremendous recognition throughout the industry, receiving 77 advertising awards in 13 years. In 2010, the company s media buying reached 160 million dollars (CNY 1 billion), topping Chinese interactive agencies in annual media buying. About &c. &c. is an online advertising agency dedicated to serving its clients and consumers while achieving its raison d être, through integrating the interests of all three parties with comprehensive marketing capabilities. &c. is a company that operates freely Special Feature 3-2/6

3 360i David Berkowitz Vice President of Emerging Media 360i Consumer behavior is continually evolving in the wake of rapid technological developments. In the future, the rise of mobile media consumption and transactions will break down silos between digital and physical realms. For marketers, this means digital can t be planned in a silo; it must be fully integrated into brand planning and within all marketing programs. Further, the way marketers leverage digital must continually adapt as behaviors evolve. Our mission at 360i is to help marketers capitalize on these disruptive changes in consumer behavior to create deeper connections with their target audiences. As a full service digital agency, we provide the complete breadth of capabilities within digital and also offer deep expertise in search marketing, social marketing and mobile the three areas where changing consumer behaviors are most fundamentally disrupting the marketing landscape. This positioning offers our clients the simplification of turning to one digital agency of record for their digital marketing, while feeling confident that they are working with a partner who has the specialized expertise needed to achieve excellence within these always-changing areas. Our philosophy has landed us accolades from many leading publications. We re especially honored to have been named to Advertising Age s Agency A-List in 2011 and placing first in the publication s 2012 list of Standout Shops. In addition, Advertising Age has recognized 360i as one of the Best Places to Work in Marketing & Media in both 2011 and 2012, making 360i the only agency to be featured in the Agency A-List and Best Places to Work issues for two years running. 360i has also been named to Fast Company s World s Most Innovative Companies list. Consumer behaviors are shifting incredibly quickly and the pace of change is only accelerating. Companies like Pinterest can quickly rise to prominence, catching many off guard. We are committed to staying ahead of these innovations in order to help our clients proactively adapt their strategies alongside changing consumer behaviors. This year, to serve as a resource for marketers and the broader industry, 360i launched Startup Outlook. This new program surfaces the best emerging technologies and startups, and provides marketers with a filter for evaluating them. (Please visit As we look to the future, mobile innovation is the prime disrupter that will alter the way marketers and consumers have been connecting for millennia. As mobility becomes more omnipresent, it will offer marketers new ways to impact awareness, engagement, transaction and advocacy among their audiences. We will continue to prepare our clients today for tomorrow s future, and the changes and opportunities that lie ahead. Special Feature 3-3/6

4 About 360i 360i is an award-winning digital marketing agency that drives results for Fortune 500 marketers through insights, ideas and technologies. 360i helps its clients think differently about their online presence and evolve their strategies to take advantage of the new world of marketing communications one where brands and consumers engage in interactive and multi-directional conversations. Ad Age recently named 360i the #1 Standout Shop in its 2012 A-List issue and named it one of the Best Places to Work in Marketing & Media for two years running. Current clients include Oreo, jcpenney, Coca-Cola, Bravo and Diageo, among others. For more information, please visit blog.360i.com or follow us on Special Feature 3-4/6

5 IgnitionOne previously been bought on a CPM view basis, evolved to CPC auction models known as real-time bidding (RTB). This was largely due to innovations around the ability to retarget visitors. Facebook and other social inventory sources have also adopted similar models. Our position is that this trend will continue and will help facilitate innovation by increasing the ability to respond and buy across channels. This allows clients to act on data by moving budget rapidly while reducing wasteful media spend, and increasing ROI. 2) Evolution of client and agency structure James Yancey Vice President, Global Strategy IgnitionOne Digital media management is converging. What was previously viewed as disparate data sets (search, display, Facebook, etc.) can now be approached with unified metrics. Each channel is connected to the others in terms of cause and effect. As leaders in cross-channel attribution capabilities, IgnitionOne was first to market with a comprehensive approach to prepare for this. By launching the Digital Marketing Suite SM, we promoted a vision that holistic performance was a competitive differentiator over siloed point solutions. There are two trends across the landscape that help to shape our vision: 1) The rise of biddable media We are seeing the structure of teams managing media change in response to these new opportunities. On the agency side, many of the larger networks are launching biddable media operations. The skill sets are holistic as well as discipline specific. This means that in a single team there are people geared to bidding and optimization across channels with others as dedicated experts for ad creative. Examples include dynamic creative for display, product extensions for search and Sponsored Stories on Facebook. On the client side, we are finding increasing numbers of employees who have cross-channel management capabilities. As the industry matures, experts will be increasingly more likely to gain experience managing multiple channels. This makes the utilization of a holistic strategy more likely. IgnitionOne recently won the Innovation in Analytics award from Econsultancy. This acknowledged our work in creating holistic metrics that can be used across all channels. As we prepare for the future, much of our work will focus on the automation of decision-making across channels with statistical, behavioral and econometric modeling. Search advertising led the way with biddable media. It was the first channel where you could buy clicks on a performance-based auction at scale. Years later, display advertising, which had About IgnitionOne IgnitionOne, the global leader in digital marketing solutions, enables companies to Special Feature 3-5/6

6 integrate and centralize cross-channel marketing efforts within one platform, allowing for deeper insights and greater online success. Across search, display and social, IgnitionOne provides the world s top marketers with media optimization, cross-channel attribution and website conversion solutions. IgnitionOne s solutions are powered by proprietary, integrated technology: IgnitionOne s Digital Marketing Suite SM. IgnitionOne currently powers more than 30 billion dollars in revenue each year for leading brands, including General Motors, Chico s, Ann Taylor, La Quinta, Travel Guard and Fiat, as well as advertising agencies such as MRM Worldwide and CyberAgent. Special Feature 3-6/6