Roger Strack

China’s emerging digital power – “Integrated for Life”

China is known worldwide as the workshop of the West. But for many years, it has no longer only been known for its extreme production capacity. It exceeds repeatedly the superlatives in all the statistics and rankings, and the digital world is no exception.

Currently of the Chinese total population of 1,362,000 inhabitants, more than 600 million are already online, which is an Internet penetration rate of almost 50 per cent. It makes up 22 per cent of global internet users (1) in one country, and over 95 per cent have one or more social media accounts (2) which they also actively use, on average around 1.7 hours/day of intensive use (3), making China the undisputed social media giant.

But those are not all the superlatives. China has managed, in less than 15 years, to become the world’s second largest eTail market and become a global leader in online sales of luxury goods, which is reflected in an annual turnover from online sales of 2.9 trillion (2014). (4) And the market, seemingly unrestrained, continues to grow. Alone in the first quarter of 2015, online shopping sales once again increased by 45.2 per cent compared to last year, with an increase of 169.3 per cent (5) in mobile shopping. Recent forecasts even expect 2015 to be a turning point in B2C eCommerce with mobile becoming the dominant e-shopping channel.

Impressive figures – impressive results. Results that have attracted worldwide attention and interest in understanding the Chinese digital revolution phenomenon.

In recent years much has been written about the digital and mobile ecosystem in China, making the three Chinese Internet giants, Baidu, Alibaba and Tencent, familiar to marketers worldwide. Three companies and the three corporate visionaries behind them, Robin Li (Baidu), Jack Ma (Alibaba) and Huateng “Pony” Ma (Tencent), whose significant contributions to the digital revolution in China and China’s digital market resulted in the BAT Ecosystem (Baidu / Alibaba / Tencent). An ecosystem that has catapulted the three men not only to the forefront of digital China, but also to the top of the Forbes list of the richest Chinese.

To be a successful company in China, whether B2C or B2B, consumer or luxury goods, it is necessary be present online and to be part of this ecosystem, and this in a way which is relevant to the Chinese audience. And it needs to be understood that what is familiar and successful in the Western world is not necessarily the solution in the Far East. To succeed, an understanding of the culture, as well as the digital environment is indispensable, and not just in terms of language. An adaptation to modern Chinese lifestyle is essential and in 2015 that means: social media, eCommerce and mobile.

The Chinese rely on social media more than any other (marketing) channels, because social media channels provide an opportunity to express and exchange their views in ways not possible in other, largely government controlled, channels. Through their experience with the government, the Chinese attach great importance to the opinions of other Chinese. Recommendations from friends, from family or from business partners are in great demand. More than 66 per cent of all Chinese trust and rely on their friends, especially when it comes to buying or investment recommendations. Moreover, instant messaging systems in eCommerce provide direct and immediate contact with the customer, which can significantly increase trust and influence on the customer. The interaction in social channels between users, with KOL (Key Opinion Leaders), as well as brands, can therefore take place directly at a different level and specifically affect decisions. This means that there is nowhere worldwide with more social media addicts.

Since most Western social networks (Pinterest, Facebook, Google+, Twitter and YouTube) are blocked in China, and are difficult to reach reliably via VPN tunnel, a separate national social network has evolved over the past few years, based on the central platforms Sina Weibo and Tencent’s We chat. A social marketing network has emerged which many experts consider better, and from the marketing perspective allowing more targeted, efficient marketing measures than is the case in Western media.

With regard to e-commerce the Chinese government’s last 5-year plan (2011-2015) set a clear objective: China as a global leader in eCommerce. This was centralized and energetically launched. Government action ranged from simplified processes in the creation of eCommerce companies, including tax breaks, a significant improvement of Internet and mobile networks (4G), as well as logistics, through to innovative payment arrangements. And the goal was achieved. Chinese consumers bought more online than ever before, and the aforementioned incredible figures prove that. But again, only those who understand how the giants, Alibaba (B2B), Taobao (C2C) & Tmall (B2C), function can be successful here.

But what now makes the Chinese market so different to the rest of the world? How do these superlatives come about? And above all: how can we use these opportunities?

In a recent interview, Jack Ma, founder of Alibaba, put it in a nutshell: “In other countries eCommerce is a way to shop, in China it is a lifestyle” – and that’s exactly how eCommerce in China differs from the rest of the world.

And what applies to eCommerce also applies to other digital measures. The phenomenon in China is not the figures as such, impressively as they are, but the fact that “online” is “integrated” into the lives of 1.3 billion Chinese people, and that it is an indispensable normality – daily business.

Marketing in China can therefore only be successful if “digital” is also a matter of course, a part of everyday life. The Chinese live on the Internet; the Internet is a part of their lives. Therefore: digital channels have to be essential parts of everyday life – via desktop, tabloid, smart phone, QRCode, social media, KOL, instant messaging, Alipay etc. Every conceivable digital measure must be considered and used whenever possible in order to integrate a company and its brand into Chinese consumer’s lives.

And this is a challenge which in many cases the German/European/American headquarters cannot master in the launch of Western brands in China.

The approach “we have a marketing concept and we’ll roll it out worldwide” may work well in conditions found in many European countries or the United States. China, however, requires a different approach. In China “digital” is not just a marketing channel; it is the heart of marketing. The point where all the strands converge. Almost no campaigns come without a focus on digital. The majority of media plans for China are limited almost exclusively to digital channels to the surprise of European colleagues – and when in the exception Offline is considered, this is only part of a well thought of Offline-to-Online (and vice versa) mechanism that is the key to success here.

The seamless integration of both worlds is no longer theory but practice, which is confirmed in China, and accounts for the investments of Chinese technology companies such as Baidu, Sina and Tencent in retail business and offline business models, as increasingly highlighted in the media.

Social media has taken the key role in successful campaigns in modern China.

At a time when (from the Chinese perspective completely outdated) social media in the Western world is celebrated as the great innovation in customer communications and user dialogue – social media in China already provides all-purpose instruments and a central campaign framework and already offers, alongside marketing, a direct shopping channel, payment terminal and shipping tracking in a single application in the hands of the buyer.

And that is not the end of it. Almost every week China’s digital players put new innovations and technology into the race, which are then adopted in the shortest time and integrated into daily life by an extremely inquisitive open-minded society, eager for innovation and technical highlights,. Innovations often need months if not years to find widespread recognition in the Western world, whilst in China they spread at a record rate across all age and income groups.

But China is not only a market of giants. In addition to the known, previously mentioned players, there is still plenty of space for thousands of niche players (which often have more than 500,000 active users) who, through innovation and customer focus, satisfy the still unsatisfied hunger of Early Adapters. The need for the integration of digital applications in daily life is immeasurable and so there are now digital gadgets available for every imaginable need – which often make life much easier. It is already normal to pay at vending machines with a smart phone, and in daily life, the use of taxis or bill payment without apps and with cash is almost impossible – or at least considered obsolete and primitive.

Applications like QR Code or ibeacon, which in Germany are found at most as gimmicks in technology fairs or as a guide in innovative museums, are in China’s 1st and 2nd Tier cities essential instruments to ensure communication between advertisers and their consumers.

For those involved in advertising and sales, these developments are, in many respects, a challenge. If it is already a challenge to keep up-to-date with these new features, then the second step is to successfully use these new innovations and know how to integrate them accordingly in the communication mix as well as in sales and distribution processes. An outstanding example of this is the development of WeChat with regard to virtual money transactions as well as the use of smart phones as the dominant eCommerce channel of the future.

However, these developments present Western companies in particular often unexpected obstacles. To get an overview and find the right approach often involves high unplanned costs for highly localized communication and distribution concepts as well as the corresponding implementation itself. This often leads to global campaigns being locally adapted with only limited budgets and then often with limited success. However, anyone who is willing to invest and exploit the potential of the Chinese digital playing field is rewarded, and the Western brands which have taken a local approach are rewarded with surprisingly strong market positions.

The secret to success here is usually a strong local team with the right local partners, openness to new technologies and to some extent for the West completely unknown players and platforms, as well as anticipating a corresponding flexibility in the implementation, especially when it comes to global guidelines, IT standards and consent. Here, the Western world too often lags behind developments in the Far East, and time plays a very important role in China. China is in constant change and development, and is clearly ahead of the West in many areas. In particular, the digital environment is developing rapidly and requires of all who want to be involved successfully, the highest speed.

True to the mantra of the Digital Experts in China: “Execute fast, or die.”

(1) http://www.internetlivestats.com/internet-users/china/
(2) which explains why the number of social media users exceeds the number of Internet users
(3) Source: NBS of China, CNNIC, Tencent, MIIT of China, Global Webindex: wearesocial.com;
(4) http://www.iresearchchina.com/views/6484.html;
(5) http://www.iresearchchina.com/views/6484.html; http://www.iresearchchina.com/views/6449.html

/by
Christine Lischka

Design between Occident and Orient

It is holiday season and so the obligatory question comes up: where are you going?  My answer, as for the last 7 years: Turkey. Then, almost like a Pavlovian reflex, comes the next inevitable question: Antalya? As I was recently quite seriously asked whether Turkey had more than one airport, I spontaneously decided to make Turkey my theme here.

First of all I stay 3 hours drive north of Izmir on the Aegean coast, the so-called Olive Riviera. According to Google Maps it is 600 km from Antalya. Izmir, by the way, has an airport, four universities and a technical university.

But what for me, as a designer, is so exciting about Turkey is that the country is so young and innovative. The average age is 30.1 and children aged between 6 and 18 are miles ahead of children of western nations in mobile communications and the Internet. According to a study of the Supreme Council for Radio and Television in Turkey (RTÜK), Turkish children spend more time on the Internet than watching TV. So while we philosophize about digital natives and Generation Y, here, the 8 year olds are already digital natives. The young generation here has long been accustomed to interactively discussing, commenting and participating. You can also see, looking at fast moving consumer products and the packaging design that consumers are, quite simply, young.

Branded companies such as Coca Cola have registered that. The new Coca Cola Light Moschino Edition, pink with silver hearts, takes up a few meters of shelf space here. My enthusiasm was noticed at the grocery store and I was proudly informed that this edition had already been there for 2 weeks. In Germany, we will not get to see this limited edition at all. Turkey has now become the introduction country for all Coca Cola innovations. When I see how in recent years olive oil bottles of particular manufacturers have become coveted design objects or egg packaging like green ranch looks as cool as in London, my designer heart beats faster. Organic has also become a big trend in Turkey, and it is being creatively implemented very differently.

A young, unique and self-confident design language of its own is being created here. Everything about British design we find cool and trendy is creatively remixed here with the style elements of Turkish culture. It comes out in the form of really pleasurable, involving, breathtaking creativity. It’s fun to go to the supermarkets and to feel the pulse of the young Turkey.

From a design perspective, Turkey is already connected with Europe through an international common language.

 

/by
Ronald Focken

Adios Amigo Blatter

Not just since the beginning of the current corruption scandal has Fifa been considered by many as the evil empire. That for a long time something at the International Football Federation has been, let’s just say, not quite right, has manifested itself in our minds. But now there will be consequences. The end of the Joseph Blatter era is inevitable.

Sponsors contributed around EUR 1.4 billion to the last Fifa World Cup in Brazil. As it stands, they will no longer do that, at least not in this environment. Visa has openly threatened with withdrawal, should the Association not “turn the tide immediately”. Coca-Cola and McDonald’s announced they will reconsider their commitment. Hyundai-Kia has become “extremely worried”. Sony and Emirates turned their backs some time ago on Fifa because they were afraid that the poor image of the association rub off on them.

This is true now more than ever. Corporate governance has gained significantly in importance in recent years for companies. And the fact is that in this case more than just paying lip service is necessary. Fifa in its current form and constitution contradicts any corporate governance – and it is no longer supportable for any company, let alone a desireable partner. This is indicated not least by the large number of abusive posts in social media that have befallen the sponsors.

However, once the cash flows dry up, Joseph Blatter and his system can no longer prevent their own demise.

/by
Rami Hmadeh

A Thousand and One Tales of Marketing from the Middle East

Yes, we are the stuff that legends are made of. And no, you don’t have to hold your horses; in fact, you’ll need them as I take you through 1,001 Tales of Arabian Marketing myths and urban legends in the Middle East.
Much has been written and much has been said about it, but so far, very little attempt has been made to simplify the stuff that marketing legends in the Middle East are made of. Still, one too many investors are left unaware of the many intricacies involved in communicating to Arab Muslims, for instance; or of the “do’s” and “dont’s” associated with understanding a region that has in fact more economic than political stories to tell than most international news rooms would have it.
So here’s a quick run-down of some Arabian tales you just might find useful in considering a brand venture into this emerging region of global affluents and digital millenials.

Urban Legend #1 | The Middle East*, known as the Arab region, is a homogeneous market. Myth, of course, as it has three main cultural groups and two geo-economic clusters.
The three cultural groups are led by the predominantly Arab Markets of Saudi Arabia, Kuwait, and Oman, among others, which are considered to be strongly traditional with impregnable traditions and strong family ties.
Then we have the multicultural markets like the UAE, Qatar, and to some extent, Bahrain, with high percentages of expatriate populations, and are earmarked by modern luxury. Last of these cultural groups are the Levant markets of Lebanon, Jordan, Palestine and Syria that have a very Euro-Mediterranean feel to them. Compared to a predominantly Arab region like the GCC, the Levant region is where we see a celebration of commonalities and a transcending of differences between European and Mediterranean cultures. Even the topography of the region is more European than the GCC which is predominantly made up of desert lands. Now barring the war that is happening in Syria right now, Syria’s Euro-Mediterranean roots remains.
Geo-economic clusters are the easiest to remember. GCC or the Gulf Cooperation Council is a political and economic confederation of six countries namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. As a result of this cooperation, foreign direct investment in the region has become an integral economic booster in what has always been known as an oil-rich and oil-dependent region.
The Levant markets have become more globalized and a lot more integrated with its Arabic roots, and while political instability may seem to be an underlying thread, measures of economic strengthening and stability, along with long-term developments are largely underway. These are thanks, in part, to a pool of highly and even globally-educated younger generation who are ever more keen to keep in step with the progress of its neighboring GCC countries.

Urban Legend #2 | Despite common misconception, an Islamic lifestyle is neither intrinsically anti-western nor anti-American. As a matter of fact, a growing number of Muslim consumers aspire to emulate an international (western) suburban lifestyle. Without necessarily deserting their Bedouin roots, Arab families are now adapting a global-minded lifestyle, with most young Arabs seeking higher education in Europe and the Americas.
Even as they lean towards western-style lifestyles, many increasingly make choices that re-assert their identity as Muslims and their respect for Islamic principles. As such, Sharia-oriented business models form core of their product and service preferences.

Urban Legend #3 | Communicating to Arabs is the same as communicating to Muslims. Wrong. There is an undeniable distinction between Arabs (or the Arab world) & Muslims (or the Muslim world.) Arabic Muslims come from the Arabian Gulf and, compared to other Muslim regions, they reflect more Western ideas and tremendous wealth.
Even the geography and topography of their region speak well of the Arab Muslims who actually represent a highly developed culture and civilization where modern cities mingle with ancient ones. Oil as well as infrastructure and modern progress and tourism has catapulted most Arab Muslims to their global wealth to date.

Urban Legend #4 | Marketing to Arabs is marketing to an aging population of forefathers and their current heirs. This, I say, is a big misnomer. There is a new and powerfully emerging new Arab Muslim consumer today. The Arab millennials or the Arab digital generation, is dominated by young consumers who are the future of Arab and Muslim consumption. Currently, more than half of the population of Arab countries are under the age of 25, now representing more than 11 per cent of the world population.
Interestingly enough, these Millennials are growing into a hugely different world to the generation of their immediate families. Their beliefs, their concerns, their expectations, and their aspirations are shaped by their life experiences which have not only seen the recent Arab Springs, but have witnessed a global population that has come to respect the rapid progress in their region – progress that took decades for most first world economies to achieve.
While core religious values and inclinations remain the same across the geo-economic clusters and across generations, the Millennials’ contemporary concerns and expectations pose a whole new slew of challenges and opportunities to marketers seeking to reach out to an outspoken, digitally-connected consumer segment.

Urban Legend #5 | Business is strictly business in the Middle East. You were warned. Business and personal friendships are one and the same in this highly-relational region, and Arabs generally prefer to do business with people they know, they like and they trust. Speeding up introductions to get straight into business dialogues might just get you into some bit of a bind. Small talk is more than just a courtesy; it is a way of finding out whether you would be a suitable business partner.
I say take time to engage in conversation, both genuinely and enthusiastically. Sincerely inquiring about family members and their well being, and having a few stories in your back pocket to break the ice are always sure-fire ways to get business meetings off to a fiery start.

These are but 5 of the 1,001 tales that we, a team of more than 14 nationalities in our Dubai Offices, are eager to share with you next time we meet…. over a pot of Arabic coffee and some dates maybe?

*The term “Middle East” has many different interpretations (politically and economically) in terms of which countries are included and which are not. At Serviceplan Middle East, we cater to the following markets:
Bahrain, Saudi Arabia, Kuwait, United Arab Emirates, Oman, Palestine, Qatar, Jordan, Syria, Lebanon, Iraq, Yemen.

/by
Florian Haller

Why we believe in glocal communication solutions

What comes after globalisation? Let’s be honest, we are already living globally. Ever since the advent of historical long-distance trade, merchants have sold goods worldwide. After the industrial revolution, and at the latest after the last economic boom, our economies are now global. Exports in world trade have increased since 1950 from 58 billion to over 18 trillion US Dollars; major trade routes have long been established, and logistics companies have established close-knit networks spanning the globe. “Made in Germany” is still a seal of approval, but “Made in China” is no longer synonymous with cheap production or poor quality. Increasing political, cultural and social interdependence, along with the removal of tariff barriers, has continually contributed to a further coming-together of nations and the opening of markets.

One of the biggest drivers of this wave of globalization is the rapid progress of digitalisation and with it “Internetization”. This has heralded a huge shift in our perception of globality. We have never been more global than today. We have never been less restricted, independent, and (potentially) informed. Health, freedom and success are the values most frequently mentioned in the index of fundamental values of (German) Society in 2014. We eat a healthy diet, have almost unrestricted travel, and are hardly even restricted to one place; we are making the world our home. Born in Europe, studied in America, a job in Asia and holidays with friends in Australia, all this is now almost normal; and, thanks to static internet access and increasing availability of mobile internet, we can stay connected globally, with our families, friends, followers, and the world, via Facebook, Twitter, Instagram or directly, live and in real time via messenger or video chat. With crowd-funding, projects can be internationally planned, successfully financed, and carried out. Anyone can be an author, musician or video artist and sell their works worldwide via the internet or “share” with others.

At the same time, market and social researchers have recognized the trend toward locality: for example, the growing number of consumers who are willing to pay more for locally produced goods or are concerned with sustainability in order to protect their region. In the boundless freedom we look for limits, long for roots and to put down roots, for stability in  rapidity, familiarity in the unknown; for example, in products and brands that we know. which give us security and provide stability, which stand for quality, and which we associate with positive emotions or memories. It is a huge opportunity for companies to make their brands the enduring companions of their target groups worldwide.

Successful global brand management is, in particular, the process of analyzing the characteristics of various markets. This is not just to hold their ground with brand connoisseurs, but also to attract and inspire potential new customers. Global networking and the resulting flow of information cause cultures to begin to meld. But, whilst markets (must) open, it is still imperative to take the cultural and social characteristics of the different regions into consideration.

Although this is not an entirely new idea, it is difficult for many companies as they struggle to decide which of the company’s original values to retain globally and where regional values should be integrated. Whoever loses touch with the people and their needs, miss-plans and creates unprofitable niche products, and the best global product can only win if it convinces locally.

This is one of the reasons why today we no longer develop advertising campaigns per se, but rather the best possible “glocal” communication solutions, for and with our clients. It is communication which conveys and imparts the essential core message and the spirit of a brand globally but can simultaneously integrate at the local level the particularities of regional markets.

For this, in our view, three things are particularly relevant for modern agencies. Firstly, creative potential and sensitivity, to gain people’s attention with fascinating stories to attract them to our brands, and to charge brands emotionally. Secondly, a deep understanding of the media with rapidly developing and changing channels, in order to reach people with the right media at the right places and at the right times. And thirdly, the mastery of new technologies to develop useful and relevant communication solutions for ever changing opportunities and, of course, to deal properly with the mass of digital data generated daily. Herein lies a major challenge for companies, and us as their marketing agencies. We need not only keep pace with technological developments, but wherever possible, to be one step ahead, ready to anticipate innovations and trends.

Only the correct and precise interplay of these three components; creativity/creation, media, and technology, can we create innovative communication solutions which succeed beyond the effect of a traditional single advertising campaign. These solutions are tailored to attract and involve people, to create a continuous, individualized communication chain from the first media contact through to purchase and ideally future purchases.

Think globally, act locally: to combine global thinking with local implementation; that is our promise. Since 2006, we, at what has now become the largest owner-managed agency group in Europe, have worked on our vision to become the first global partner-managed agency group of German origin. We aim to look after our clients not only worldwide, but also, as necessary, to stand by their side, seamlessly across national boundaries, as they go global. The number of our employees has more than doubled in that time, and our corporate culture today is characterized by its international flair. We are represented today in more than 30 cities all over the world, wherever possible with our “House of Communication” concept, which covers the above mentioned three pillars; Creation, Media and Technology. And, incidentally, in every location, we have two managers: one who has the global market in mind and one who is a local expert.

So what follows Globalization is Glocalization – and it has already begun.

/by
Moe Jawhar

The power of humour

Have you ever been in a meeting that was so boring that you fell asleep and started dreaming about happiness and milk shakes, only to be woken up by the horrible reality of you being stuck in a room with a guy reading slides to you?

The problem with people is that they are so focused on the bottom line that they end up just focusing on efficiency. I love efficiency, don’t get me wrong, it does justify what I do for living, though just because something is efficient it doesn’t mean that it’s effective. Just because something explains the details, does mean it actually gets results.

If you’re thinking “Why should I believe you fat Arabic Mr. T?” Because I’ve actually been there.

In 2008 I was working for an ad agency in Dubai, I was so excited that I had to do my first presentation to a client without any support, it would be my chance to prove myself! So I created a presentation that was a “Killer”…  a killer because as I realised during my presentation, that it bored my audience to death.

But then I found out what my presentation was lacking: after the long, boring presentation the client approached me and said: “You know, you’re really good with PowerPoint.” So I said, trying to be funny: “I try to excel at it.” He smiled and asked: “Was that a Microsoft Office joke?” I replied: “Word!”

I found out later that he thought I was funny and liked me so much, that he actually convinced his team to give the campaign a shot. I never knew that people think humour in advertising is not efficient, I was actually told that using humour distracts the customer from focusing on the message and/or the product, and in the past I would’ve believed it!

Here’s what I learned: If you have a good product and you try to tell people with facts and numbers how good it is, nine out of 10 times you will lose. Humour is a great weapon that everyone can use to get a message across, comedians know that, and you can see that a comedian can tell you the most absurd and offensive thing and you accept it with a laugh. That’s the power of humour.

Today, people want their ideas to be adopted by people more than ever. The Internet has given people the hope that they can make their voices heard from all over the world. That could be anyone from advertisers to trolls. Something that psychologists have gradually come to understand is that there’s one way to make your message penetrate listeners’ defences: be funny.

But apparently, here in the Middle East, we are not good at being funny. A study done by Knowledge Point shows that in the Middle East only 6% of ads are considered funny and memorable, while in Europe and North America it’s up to 14%. This doesn’t mean that we are not funny, (at least I hope so) but I think it’s because:

a) We are not being genuinely funny, we try hard to copy others rather than creating our own content.

b) Our geographical and cultural background makes it difficult.

A joke can be hilarious to a person but the opposite or even offensive to another, depending on where he comes from. I know that there’s no way a Lebanese joke can be as funny to a Saudi for example, and vice versa.

A couple of years back I was jury member in one of the international advertising awards held here in the region, we had to look at work from all around the world. One of the challenges we faced was that we, the jury members, were from multiple nationalities, and whatever half of us found great work based on humour, the rest didn’t get it.

What –in my opinion– we actually need to do, is encourage humour in the industry. It will make creative people enjoy their work more, it will definitely boost the creativity and last but not least it will ensure that the message will get across. But for this to work it should be done on a local not regional level, where jokes become generic messages that are not funny.

/by
Christoph Kunzendorf

Think Digital, Think Again!

Digital media is witnessing unprecedented growth in India. And it’s no surprise that the main drivers for digital media in India are video, mobile and social, considering that these domains are without doubt the realm of the young and the restless. Add to this the staggering fact that India has an enviable and unparalleled youth demographic – 65% of India’s 1.3 billion population is either 35 or below 35, while half of the country’s population is below 25 years. Figures like these are pushing the digital growth story in India and you can safely conclude that with mobile and Internet penetrating deeper into the heartlands of rural India – which alone constitutes 70% of India’s population, we are still to witness some of the most incredible digital stories yet.

As far as the advertising industry is concerned, among all the media digital continues to show the maximum growth when compared to TV, Print, Radio and OOH. Moreover, industry pundits have forecasted a 37 per cent increase in digital media spend in 2015. Brands are now ‘consciously’ focussing a significant portion of their media spend on digital, and this is evident from the fact that digital has been growing at an average rate of 35 per cent over the last two years in India.

Furthermore, brands have evolved their thinking from a “social only” mindset to a much broader canvas when thinking digital. This is evident from the evolution of online promotions we got to see in the festive season that just passed us. Brands have graduated from basic Facebook posts to full-on digital engagement, including branded/viral content. What is really encouraging is the fact that we are seeing a lot of local brands stepping up on the digital stage to make their presence felt. Their confidence is definitely a positive signal for our industry and engaging them will definitely lead to further innovation in the digital space, apart from widening our canvas as creative professionals.

Let me leave you with one such brand that I came across last Christmas Eve – Lia, a domestic air freshener product company, which created a YouTube video (youtu.be/Ba6zB-kBtnQ) to showcase their product’s ‘capabilities’ and a responsive microsite (www.thehohoho.com) to promote their products in the ‘true’ spirit of Christmas. Enjoy!

/by
Christoph Kunzendorf

Currently trending in India: Accountability

On 16th May 2014, the people of India breathed a heavy sigh of relief. As the result of the largest election in the world surfaced, +1.2 billion Indians were relieved that after 30 years of fractured mandates, a single majority party had finally come to power – one which would not need the support of allies on every single issue and therefore decisively rule the country.

After 10 years of Congress misrule, the people of India finally overthrew the incompetent incumbent government into the fire of accountability. The grand old party of India, the Indian National Congress had tasted its worst defeat in a general election going up against a resurgent BJP, led by the charismatic Chief Minister of Gujarat – Narendra Modi, who had led his state on the path of rapid and inclusive development.

And it seems that it’s not just the Indian voters who are deeply interested in results. For quite some time now corporates in India are relooking at their advertising spends and asking questions of their agencies. No wonder in the last few years Return on Investment (ROI) has become quite the buzzword in our industry.

In a scenario where media budgets seem to be getting tighter with each passing year and the clients’ affinity for everything “online” increases exponentially, our job as advertising professionals and brand custodians is to guide them in these difficult economic times where it’s tempting for them to focus solely on costs. With the research available at our disposal we should educate the client about the pitfalls of putting all their eggs in one basket. After all, no media campaign should be judged only on the basis of cost and spread (or for that matter ‘likes’ and ‘shares’). Our accountability lies in not only delivering the most creative and impactful brand communication, but also planning and recommending to the client the most effective media mix that will result in maximum ROI for their advertising spend.

In the end, I conclude that accountability and ROI are the need of the hour, but we must remind the clients: “a man who stops advertising to save money is like a man who stops a clock to save time.”

/by
Florian Haller

A historic evening for brand Germany

Sunday evening was a historic one for brand Germany. First of all, of course, Germany took to the stage with its inspired and inspiring team. Young men who simply have a crazy amount of fun with the world’s most important triviality: football. It has always been said of German teams that they are efficient and combative. All of a sudden, however, such “un-German” virtues like creativity and ease of touch have been added. Germany also showed itself to be a cosmopolitan country. Half of our team have a migrant background. And the remarkable thing about it: No one finds it remarkable. The coexistence of a variety of backgrounds is part of day-to-day life in Germany. And last but not least, the fans showed their best side. Millions of German fans celebrated their country’s victory together in a way that was jovial, frenetic and peaceful. Where fans gathered in urban public spaces, a sea of black, red and gold flags, car parades and fans with Germany flags on their faces could be seen. And all that without so much as a hint of nationalistic arrogance or ulterior motives, but simply in a manner that was cheerful and at ease with one’s self. In view of our country’s recent past, that is not a given, but an achievement of the last 20 years. The final was therefore the best business card possible worldwide for brand Germany.

/by
Kathrin Guethoff

Chinese for Beginners

One thing that is very important, as a first step when dealing with China, is to understand that China is very different. It is so tempting to just think we can translate to and from Chinese and Western languages as we do between English and Italian or French. This is not the case. This language follows a totally different pattern and way of expressing things, that is deeply rooted in the Chinese culture. And, of course, in the different characters that are based on images and not letters. Therefore the convention of Western logic is not relevant in China, which often results in misunderstandings and even wrong perceptions. And this just stems from the language.

I love China, as is to be expected after being here for 9 years.
From my point of view to really connect you have to open your mind to allow the possibility of a different concept of thinking, as it counts for any experience with different cultures and people. You also have to be persistent, patient and willing to listen in order to see these deep routed differences, as they have arisen from hundreds (even thousands) of years of tradition which, even today, still influence people’s behavior and ways of thinking. Even though on the surface things do not seem to be so different.

In China there is no rulebook about do’s & don’ts.
Yes, there are some suggestions and guidelines from the Chinese association of advertising, but in the end you never know, because rules are always open for interpretation.

There are some standard don’ts:
Do not show Chinese currency, do not show the face, any life story, news of any government official or any buildings used as government offices, and, of course, no relevant political issues. Do not show the flag of any country, do not show the map of China, do not comment on any internal topics, …
Do not show naked people – well, I noticed that apparently different degrees of nudity seem to be allowed for certain brands. That is exactly the “freedom of interpretation” I mentioned above that might be linked to the image of your brand, its origin and to a few other things I will not to go into detail about here.

Moving on from the “obvious”.
Observing the latest campaigns and censorship cases is crucial to understanding the “don’ts”, because it can become blurry. Learning from the “faux pas” of others is the biggest insight into understanding what topics or visuals are caught by the eye of the Chinese censorship.
It can be a faux pas that originally had no bad intention whatsoever, but was deemed as “offensive against the Chinese culture”, “disturbing social order” or is counter-productive to the concept of a “harmonious society” by the censors. As an advertiser or marketer you also have a responsibility in China.

To conclude, because there is plenty more to say, China is a very complex country with a multi-layered culture.
People are quick to jump to conclusions and, judge, or think they “know” the Chinese. In most cases I doubt that. You will always discover new things to learn and you will never completely understand everything. Even Chinese people themselves don’t claim that – China’s culture, multiple minorities, ethnic groups and geographical differences are too diverse and unaccessible for the most.
If you stick to those who respect the Chinese people and culture, as well in business, then you will find true insights and a better understanding.

/by