Webinar The 4C challenges for successful Brands Consumer, Connection, Content, Conversion 14 th February, 2017 Gabriella Bergaglio Marketing Director KANTAR TNS Roberto Rossi Head of Media & Digital KANTAR MILLWARD BROWN
Connected Life - The definitive guide to how connectivity is reshaping consumers, connections, content and commerce. 57 markets 40 product categories 70,000 connected consumers AdReaction Gen X, Y, Z - Behaviours, attitudes and responses to advertising across generations to effectively engage them. 39 markets 24,000 consumers 31 ads tested across generations
The 4C challenges for successful Brands Consumers Connections Content Commerce
Consumers Creating a single view Segmenting connectivity
Myanmar Kenya Cambodia South Africa Indonesia Thailand Nigeria Ghana India Philippines Saudi Arabia Mexico UAE Mongolia China Vietnam Egypt Turkey Hong Kong Chile Malaysia Sweden Singapore Colombia Israel Brazil Ireland South Korea New Zealand Taiwan Argentina Luxembourg Peru Spain Switzerland Norway UK Italy Slovakia Denmark Greece Netherlands USA Australia Hungary Portugal Czech Republic Germany Poland Canada Russia Finland Belgium France Ukraine Japan The world is mobile-centric, and the last remaining PC markets are slowly migrating to mobile Device centricity time spent on mobile and tablet daily 1 2 3 Mobile only Multi-device mobile-centric Multi-device PC-centric Mobile + tablet share PC share Borderline mobilecentric markets
Greater chances to create rich customer experiences across multiple interactive platforms Weekly online activities 16-24s 25-44s 45-54s Emails ITALY Messaging Social networking Read articles Video free Video - on social network Video - by friend Mobile/tablet game Upload photo/video/music Internet radio/music
But with greater connectivity comes greater risk of inconsistency across brand touchpoints 55-64s 16-24s ITALY 21% 31% The brands I use have different levels of customer service online and offline
Understanding how devices are used in consumers daily life is a first critical step ITALY Italy Millennials 16-34 High Education No. of devices owned: 3.3 3.3 3.4 Share of time on devices: (%) Mobile Tablet 50 39 46 44 47 39 PC 11 10 15 Share of time on media: (%) 40 36 38 Traditional Digital 60 64 62 Source: (B1) Device ownership (D3New) Time spent on devices (D3) Time spent on activities Base: Italy (1,054) Millennials 16-34 (442) High Education (260)
Digital influence Low High Yet, demographics are no longer enough to understand behaviour and activate with success Observers Spend a lot of time online, but are less open to engaging with brands in a social space. Super Leaders Within the leader segment the most active and most social group of all. Leaders The most digitally, and socially active of all the segments. Functionals Spend the least time online. Will often use online where there is a tangible advantage. Connectors Spend a limited time online, but when they are, they are heavily social. Low High Social engagement
Digital influence Low High Yet, demographics are no longer enough to understand behaviour and activate with success Italy Observers Spend a lot of time online, but are less open to engaging with brands in a social space. 15% 23% 9% Super Leaders Within the leader segment the most active and most social group of all. Leaders The most digitally, and socially active of all the segments. Functionals Spend the least time online. Will often use online where there is a tangible advantage. 37% 15% Connectors Spend a limited time online, but when they are, they are heavily social. Low High Social engagement Base: (1,054)
We believe that the customer only sees one bank. We are working on connecting all platforms to deliver an integrated customer experience Karolina Kozłowska mbank
Consumers are asking us to satisfy diverse needs that are more and more personal. Michał Tomaszuk CEO, H20 Creative
Connections Find the right channel The social journey
Luxury of choice makes people more discerning about the media they consume Daily media use % Print media Radio TV Offline 30% 27% 74% Online 47% 30% 65% Online articles Online audio Online video
Video viewing is changing: around 50% of total minutes are on a digital device Share of Time on Device - % TV ON DEMAND LAPTOP TABLET SMARTPHONE ITALY 36 12 19 10 23 EUROPE 34 19 19 9 19 GLOBAL 32 18 18 10 22
Channel preference has therefore evolved from what s available, to what s best for the job Ideal platform for each activity % platform users (overall preference) Entertaining brand content Info about services and products Ask a brand a question Use Facebook (Facebook users) 49 30 33 Use brand website (all) 41 35 26 Staff in-store (all) n/a 28 44
For many consumers, social is now seen to have a role to play throughout the customer journey Social seen as a preferred platform for each activity % selecting social ITALY Find out information 44% 37% Ask a question Access branded content 67% 50% Express an opinion
Social can present a solution, offering opportunity to engage along the consumer journey Customer needs: Entertaining content Information about products/services Ask questions Share opinions Company Consumer opportunities: Needs: Brand building Brand activation Customer service Brand advocacy
What matters is not the abstract idea of touchpoints but, an overall understanding of what a tribe is doing, where, when and why. Jean Francois Mignot CDO Team, L Oreal
New service models have changed consumer standards: easy, quick, convenient and technological. They represent the new benchmark and tomorrow s potential competitors Alessandro Froio, Customer Experience & CRM Intesa Sanpaolo
Content Relevant at the right moment Shifting spheres of influence
People are conflicted about the relevance of brand content, with poor execution leading to feelings of being stalked Top 2 box agreement % 38% I enjoy reading and watching content from brands on social I feel constantly followed by brand advertising online 34%
Which in turn leads to usage of ad blockers, eroding ad spend 18% Using an ad blocker 86% Reading articles online
To maintain relevance and cut through effectively, brands must find the moments that matter Where can you find your target? What moments matter (to your brand)? When are they most receptive?
There is huge variation in online video ad format receptivity NEGATIVE POSITIVE -80-60 -40-20 0 20 40 60 80 NET (+ve minus ve) Mobile app reward 33 Social click-to-play 16 Skippable vertical video 14 In-banner click-to-play 13 Skippable pre-roll 12 Skippable mobile app pop-up 2 View to play -7 Social auto-play -19 In-banner auto-play -23 Pre-roll -32 Mobile app pop-up -37
Newer online ad formats are generally viewed positively, especially among Gen Z Net +ve % Gen Z Gen Y Gen X Native ads 26 24 16 Sponsored lenses 24 17 8 Sponsored filters 16 12 3 Expandable ads 13 16 11 Take over ads -2 4-5 Stat testing at 90% confidence level: Higher than row average Row Average Lower than row average
Seeking out content from producers who, despite a low budget, have a better sense of what will appeal Online video weekly usage % 16-24s Online personality Brand - owned 42% 35%
Delivering a specific content, to a specific target, at a specific moment is the challenge. Over time we've had to update our targeting strategies. Roberto Zepponi Marketing Director, Ceres, Italy
Commerce Frictionless ecommerce Disrupt or be disrupted
Egypt Myanmar Ghana Cambodia Turkey Mongolia Thailand South Africa Philippines India Nigeria Kenya Hungary Indonesia Greece Vietnam Mexico Peru UAE Saudi Arabia Portugal Chile Ukraine Colombia Argentina France Canada USA Belgium China Brazil Italy Russia Hong Kong Taiwan Malaysia Spain Slovakia Czech Republic Japan Poland Israel Singapore Australia Germany Switzerland UK Finland Ireland New Zealand Denmark Netherlands Sweden Luxembourg Norway South Korea Conversion is now everywhere thanks to ecommerce, each market facing its own challenge Total market incidence of ecommerce % Infrastructure Issues with Internet connection, or payment mechanisms Service Prefer offline to guarantee quality, limitations to delivery speed Proposition Developed, buy online based on price, and to get exclusive deals 100 75 50 25 0 Source: G3 products bought online (any product) Base: All respondents
Shoppers have different needs and expectations for ecommerce, marketers have to act accordingly Reasons to buy more non-alcoholic drinks online Top reason (behind saving money) China USA Guaranteed product quality Access to products I can t find offline
ecommerce is becoming an increasingly large part of everyday life, even in traditionally offline categories ecommerce category growth % change YoY Non-alcoholic drinks +38% Alcoholic drinks +30% Oral care +22%
Consumer demand for new propositions and technologies shows some appetite for disruption Future interest among grocery purchasers % One-click ordering 21% Saved shopping list 19% Grocery subscription service 14% Button or voice-activated grocery ordering service in home 12% Automatic ordering through appliance 12%
Just as in offline retail, future ecommerce growth will result from overcoming existing shopper frictions Time Energy Shopper currencies Money
The role of the traditional store is evolving, as more and more customers accustomed to e-commerce visit a store not only to finalize the purchase, but also to talk to a consultant, discuss the selected offer or to experience a phone or tablet live Mariya Kosogovska Strategist, Orange, Poland
Watching trends is not enough, it is necessary to be a part of them. Denisa Kollárová, Marketing Director, Czech Television
Connected Life is the definitive guide to how connectivity is reshaping consumers, connections, content and commerce. Connceted Life Report Digital Activation Workshop Sample Agenda Welcome & objectives What digital can/can t tell Consumers are challenging brands Brand Engagement & Media switching Touchpoint priorities & management Marketing across generation - lunch - Testimonial (media) Testimonial (advertiser) Breakout interactive session Sharing & discussion Closing
Thank you! Stay connected @tns_italia http://goo.gl/5qmgxp https://goo.gl/rz5x30 ENGAGING ACROSS GENERATIONS 14 MARZO 2017 9:30 welcome coffee 9:45 inizio 12:00 aperitivo Milano - via Merano 16, Talent Garden Gabriella Bergaglio Marketing Director Gabriella.bergaglio@tnsglobal.com Roberto Rossi Head of Media & Digital Roberto.rossi@millardbrown.com