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Media Options in the Age of Technology Inter2008-late-spring.resuce:inter-2008-Late-Spring 5/13/08 7:14 AM Page 1 VOLUME 2 l a t e s p r i n g tackling media options FOR ADVERTISING, MARKETING + MEDIA PROFESSIONALS in the age of technology FEATURE STORY: COMMENTARY: Looking for Agency CEOs China answers ponder the future www.internationalistmagazine.com Inter2008-late-spring.resuce:inter-2008-Late-Spring 5/11/08 6:40 PM Page 2 Inter2008-late-spring.resuce:inter-2008-Late-Spring 5/12/08 2:20 PM Page 1 inter national ist 12 | Commentary agency CEOs ponder the future 18 | Cover Story: tackling media options on the age of technology David Verklin | 19 Kal Amin, Google | 28 Erin McAllister, Unisys | 20 Brian Quinn, Wall Street Journal | 29 Scott Berg, HP | 22 Alan Dunachie, economist.com | 30 Steve Bloom, Zenithmedia | 23 Jim Spanfeller, forbes.com | 30 Hanne Tuomisto-Inch, Banner | 24 Jack Myers, Myersreport.com | 31 The Future of TV | 24 FEATURES32| Feature Story: Looking for China Answers Greg Paull, R3 | 33 Erica Kerner, Adidas | 38 Professor John Quelch, Harvard Buiness School | 36 Janet Carmosky, China Business Network | 40 Julie Chan, Johnson & Johnson | 37 www.internationalistmagazine.com late spring issue 2008 : 2 25 SUBSCRIBE Publisher’s Letter | 2 ONLINE Frontlines | 4 Companies and products in the news Group discounts Working with the World | 11 Masstige Brands: the Democratization of Luxury available for | Ahead of the Curve 15 bulk shipping. The Infinite Circle of Commerce Globetrotters | 16 Newsmakers from around the world People & Places | 42 DEPARTMENTSBig smiles at get-togethers around the world Hub Culture | 48 The new ibiza STAFF deborah malone PUBLISHER 1.917.816.6416 [email protected] amanda baltazar NEWS EDITOR [email protected] juliana koranteng FEATURES EDITOR [email protected] david kilburn ASIA EDITOR [email protected] peggy bloomer DESIGN DIRECTOR 1.860.669.5070 [email protected] patti brown WEBMASTER [email protected] corporate office 1.212.371.7026 inter national ist is published by DMNY Global. ©2007 DMNY Global. Excerpts may be AFFILIATES quoted with proper attribution to inter national ist. inter national ist is a publication for and by international advertising, marketing, and media professionals Audited by BPA International. Inter2008-late-spring.resuce:inter-2008-Late-Spring 5/11/08 5:10 PM Page 2 The Internationalist View: Marketing’s New Era of Technology Transformation 2. Technology has changed the media landscape. It has spawned a vast array of new media alternatives and distribution channels or “connection channels,” available through the Internet, podcasts, blogs, social networking, I- pods and mobile. Even traditional media have been affected as video-on-demand, IPTV, addressable television, high definition, outdoor digital technology and overall interactivity have profoundly influenced the This issue’s cover story talks about how landscape. technology is transforming our notions of 3. Technology has changed how marketers media — in terms of its consumption, delivery manage brands and build brand equity. Entrenched and measurement. brand loyalties that were once considered “givens” by Bob Liodice, President of the ANA product managers, are now being challenged by (Association of National Advertisers) in New consumers’ extraordinary access to information York, recently opened his organization’s Brand through technology. Innovation conference with the following 4. Technology has completely transformed the Tremarks that put the impact of technology into marketing measurement platform. That which was the clearest perspective I’ve yet heard: once considered to be beyond the scope of “Today the stakes for marketers are higher quantification has bowed to the reality that than ever — because building brands has everything can, in fact, be measured. These become trickier than ever as a result of phenomena — all influenced by technology — technology’s impact.” are forcing marketers to re-think the whole According to Bob, “More than anything else, process of marketing … and to literally reinvent it technology has had a huge impact on marketing. for a new era. Some say that marketing has changed more in For Bob Liodice, those marketers who have the last 5 years than in the previous 30.” transformed their brand franchises by He outlines four key areas: transforming their business systems, their 1. Technology has put the consumer in branding, their media strategy, their product control. Today, consumers can get marketers’ quality, their analytics and their people have also messages when they want them, how they want transformed their financial results. them — and, most importantly — if they want Interesting what the net effect of embracing them at all. The growing impact of TIVO and technology can be. DVR’s, satellite radio, do not call lists, and the We’ll hear more of Bob’s views about how ad-blocking power of the Internet shows that the marketers have to adapt to technology in our next rules of this game have indeed changed. In issue. many instances today, the consumer actually You can reach him at [email protected] wants to be left alone. “Give me the tools and get out of my way,” is the new consumer cry. Deborah Malone, publisher EDITORIAL ADVISORY BOARD carolyn carter andrew mclean PRESIDENT, GREY GLOBAL GROUP, EUROPE, MIDDLE EAST & CHIEF CLIENT OFFICER—WORLDWIDE, MEDIAEDGE:CIA AFRICA grace palacios janet fitzpatrick PRESIDENT & CEO, CHARNEY/PALACIOS-PUBLICITAS LATIN CHIEF STRATEGIC OFFICER, INITIATIVE WORLDWIDE AMERICA werner geissler andrew sibley GROUP PRESIDENT, PROCTER & GAMBLE, ADVERTISING MANAGER EMEA, CISCO SYSTEMS CENTRAL & EASTERN EUROPE, MIDDLE EAST & AFRICA anne c. toulouse graeme hutton VICE PRESIDENT, BRAND MANAGEMENT & ADVERTISING, THE SENIOR VP-DIRECTOR OF CONSUMER INSIGHTS & RESEARCH, BOEING CO. U.S., UNIVERSALMCCANN miles young michael lee CHAIRMAN, OGILVY & MATHER ASIA PACIFIC PRESIDENT, LEE & STEEL INC., AND EXECUTIVE DIRECTOR, INTERNATIONAL ADVERTISING ASSOCIATION Inter2008-late-spring:inter-2008-Late-Spring 5/6/08 12:48 PM Page 3 Inter2008-late-spring.resuce:inter-2008-Late-Spring 5/12/08 2:20 PM Page 4 F R O N T Starbucks Advertises U.S. Wealth Study Points to in U.S. Shift from “Want” to “Need” Newspapers According to The Second Annual Survey of Affluence & Wealth in America, produced by American Express Publishing Corporation Starbucks has built its brand and Harrison Group, affluent families now employ smart online without traditional shopping habits while exhibiting a concern for the economy. The advertising, relying instead on survey discusses a shift from America’s “I want” economy to an its many storefronts and “I need” economy, which demonstrates a new concern to customer experience as the compare price, quality and value. hallmarks of its marketing. But a slowdown The 2008 survey sampled some 1,800 consumers in personal in store traffic which has corresponded with a slowing of the interviews who represent 10% of the U.S. population, or roughly U.S. economy is changing the Starbucks view on advertising. 12 million households. This group has an average of $352,000 in On April 8th, the chain introduced its milder “Pike Place discretionary annual income and accounts for 50 percent of U.S. Roast” coffee with 30-minute giveaways in stores. Starbucks consumption and 70 percent of all assets. In addition to announced the free offer through a series of full-page surveying the three core 2007 segments — the Affluent, Super- newspaper ads throughout the U.S. that showed an outline Affluent and Wealthy, the 2008 survey includes a representation of one of their paper cups and the date: 04 08 08. The coffee of an additional seven million Upper Middle Class households, retailer is now building on these ads in some markets with who account for about six percent of all U.S. households. newspaper inserts that promote a new loyalty program. There is a feeling among the business community that Key Highlights of the Survey: Starbucks may have grown too fast in the U.S. with their The overwhelming majority (70%) of respondents use the 7,100 stores and that the chain needs to re-think its strategy. Internet to identify, price and compare and sometimes buy According to TNS Media Intelligence, in 2007 Starbucks significant fashion and home purchases online. The remaining spent $37.9 million on ads in the United States; however, this 30% prefer to shop alone, in-store with a knowledgeable April launch of “Pike Place Roast” and the ensuing loyalty salesperson. program looks like their most extensive advertising effort yet. Savvy purchasing can increase the value of household It will be interesting to gauge the results of the current income by more than 35%, freeing up in excess of $100,000 newspaper expenditure and to see if other markets outside annually in additional after-tax cash flow. In households where the U.S. will follow a similar advertising strategy. the wife does not work, the money she can save from intelligent HTTP://WWW.STARBUCKS.COM/FLASH/PIKEPLACEROAST/INDEX.HTML shopping is often greater than what she might make working, after taxes. W Hotels Offers Greener The day-to-day running of upscale households is often managed by the female head of household. Women, working or Option not, run the purchasing arm of the American economy. Eighty- April 22nd marked Earth Day this year, with more one percent of respondents (males and females alike) said the acknowledgments and green-conscious tie-ins than ever before. primary responsibility for buying supplies, including groceries, W Hotel Worldwide offered a number of earth-friendly household necessities, apparel and high-tech needs, is handled promotions, including a program with Puma bicycles. Guests by the wife, compared to 26% by the husband. would be provided, free-of-charge, Puma bicycles and helmets as The children are deeply involved because parents value their an alternative to cars. Other programs opinions and the shared experience of decision-making.
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