For Albert Einstein it was e= mc2. For brands, the key equation is marketing spend = sales, but that’s not all. Add unpredictable consumer demand into the maths and it seems arriving at a formula for recovery is a tricky proposition. Is there an app for that? How marketers wish there was.
For some brands, surviving this recession was accomplishment enough. But the majority can’t be content merely to struggle through.
The common denominator among successful marketers in this post-recession era – a sample of whom tell their stories on these pages – is the willingness to continue with what works, blended with the confidence to experiment.
Recession-busting brands are those that have grasped the huge opportunities in technology, allowing them to actually do something for consumers, where once they merely talked at them.
Take Benadryl, the anti-allergy brand owned by Johnson & Johnson. As part of an integrated campaign to position Benadryl as an information source for allergy sufferers, JWT created a downloadable app that gives the pollen count in your area and detail on where you can buy the product. Such branded utilities make so-called consumer engagement a reality.
Marketers increasingly recognise that the mobile, or the device formerly known as the mobile, is the consumer’s most personal item and brand marketing’s new best friend. These days you would be more willing to leave home without your wallet or handbag, than your mobile phone. That screen fitting neatly into consumers’ pockets means brands can be carried with them at all times.
The iPad: media convergence in action
We’ve heard a lot recently about the convergence of media. The iPad is that convergence. If you haven’t read Wired magazine on an iPad, you should, to witness its ability to fuse print, film and web communication in one place. It proves what we’ve always actually known – that the most emotive way of communicating with people in mass numbers is through picture and sound.
For that same reason, rumours of TV’s death are much exaggerated. As the marketers here attest, you ignore TV at your peril, as viewership remains very high. Technology has heralded a new era for TV, now that so many of us watch our favourite programmes on iPlayer or YouTube.
Clients look to agencies for the answers to these conundrums, in the search for the big idea that translates across media, no matter what the channel. Yet the UK industry still likes to pigeon-hole agencies, depending on their above-the-line, digital or below-the-line provenance.
But we’re all heading to the middle ground. At a recent meeting with a top-five digital agency, I was told it expects to make TV ads this year.
What integration looks like
Agencies not set up around the big idea are going to struggle. This means practising true integration, having a wide base of talent and a perspective that goes beyond a particular channel. At JWT we have a single creative department with skills ranging from employee engagement to big brand communications, and all on the same P&L so that no one is fighting over money.
Working on any JWT account will be a lead creative, chief strategist and senior account director, with access to all the resources and the 450 people in our building. We call it a triumvirate, but that’s a bit lofty. It is in fact a trinity of talent, who own the problem, the project and the client.
So where do such seismic structural and technological changes leave the marketer? Is there still a place for clients driven predominantly by gut instinct? Yes, of course there is. Steve Jobs launched the iPad and iPhone based on instinct, without a focus group in sight.
Communications that cut through have a magic ingredient, which is where gut instinct comes in.
And no, there isn’t an app for that.
Guy Hayward is chief executive of JWT UK
WHERE CLIENTS PLAN TO SPEND THEIR RECOVERY BUDGETS
THE TRAVEL BRAND: EUROSTAR
Emma Harris sales and marketing director, Eurostar: 'We'll spend more on pay-per-click'
Q: Has the recession had an impact on your marketing?
A: We did a national survey in 2008 on how people’s relationship with travel had changed. In the past it’s been about exploring, but recession travel is about needing to reconnect with people and loved ones. So we came up with the ‘Little break, big difference’ campaign that has run ever since in press, online, radio and outdoor.
Q: Where have you focused your budget?
A: We have massively upped our spend on digital, because it’s by far our best ROI channel. For that reason, PPC
and banner ads have been our marketing bedrock. But you also have to create big impact with multimedia messaging, so digital is supported by outdoor, press and radio. We’ve gone back on TV – a brave move in this climate – to promote destinations other than Paris and Brussels.
Q: Has the recession given procurement more power?
A: Inevitably it has. We work hard with our buyers to make sure they are not one-dimensional, and with econometrics specialists to predict our ROI, which is about 8:1. Brands that pull back on their marketing come out of recessions more slowly.
THE CAR BRAND: FORD
Mark Simpson marketing director, Ford of Britain: ‘TV is still the core channel’
Q: How has the recession affected Ford’s marketing?
A: We’ve had about 20% less budget to spend in the UK. But thanks to the car scrappage scheme, 2009 was much better than we thought.
Q: Has the recession meant your marketing has become more tactical?
A: You could abandon brand building in favour of tactical activity and then people won’t have a clear view of what you stand for. Yes, we have thought a little more about price, but we set ourselves up as representing value.
Q: Do recessions stifle innovation?
A: Recessions shouldn’t stop you doing new things or you will pay the price. So we were the first car brand on Mumsnet and this autumn we will do projections onto buildings to promote the S-MAX model. We have digital posters coming up targeting parents and kids in shopping centres and airports.
Q: Are other channels having a ‘good recession’?
A: TV is still the core channel – rate cards have gone down by 30%. We’re investing heavily in PPC and natural search, and launching a YouTube channel. It has huge viewership – particularly with the young males we want to target.
THE FOOD BRAND: KENTUCKY FRIED CHICKEN
Jennelle Tilling vice-president marketing, KFC UK & Ireland: 'Consumers are more value-savvy'
Q: Have your marketing needs changed since the recession?
A: We have always focused on providing innovative products at great value, and that hasn’t changed during the recession. We continue to offer value such as the Bargain Bucket to feed families for under a tenner. Innovation has become even more important as shoppers have become more savvy and demanding. We have addressed this at both ends of the spectrum, with value offerings such as Streetwise, and premium items like Boneless for One.
Q: How has you use of channels changed, if at all, since the start of the recession?
A: We continue to invest heavily in TV and outdoor. We’ve also started to experiment in social media and music sponsorship with co-production of The Krush, a music show on E4, sponsored by KFC Krushems.
Q: Will you revert to pre-recession marketing as the economy recovers?
A: Customers have become more value-savvy in the past couple of years, which plays to our strengths, as value and innovation have been the cornerstones of our business for years. Therefore, rather than changing our focus, our emphasis has been on becoming even stronger in these areas.
THE FINANCIAL BRAND: MORE TH>N
Pete Markey marketing director, More Th>n: ‘Facebook is great for connecting with consumers'
Q: Have you acknowledged the recession in your ads?
A: We launched a campaign at the start of 2009 to be a bit more hard-edged, because consumers were more deal-hungry.
Q: Has More Th>n’s media mix changed since 2008?
A: We’re doing a lot more sponsorship, including Heart FM’s Toby Anstis show and Pet Nation on Sky 1. We haven’t done that kind of sponsorship for eight years. There are great deals to be had out there.
Q: What about other channels?
A: We’re doing a lot more banner ads and PPC. I was sceptical about using Facebook for advertising, but because users can rate your ads, you get a lot less wastage. In a recession, Facebook is great for connecting with consumers.
Q: You’ve called an advertising review. What’s behind that?
A: We’re looking for an integrated idea. It’s our 10th birthday next year and we need to make the most of it. We’re in an environment where, if you can save money, fantastic, but it’s not the primary goal. The key is how we communicate the values that we stand for