The GMA Talkback Magazine February 2013

TalkbackGlobal Marketing Alliance

gmaIssue 1 - February 2013

INSIDE...Mobile retargeting Email marketing messages Tour of ‘tech cities’

The only business title delivering the latest analysis and opinion from the global marketing community

DIRECT MARKETING INTERNATIONAL MAGAZINE

From

The business community for international marketers

FEBRUARY 2013 Talkback

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Contents

GMA TalkBackThe marketing world is never

short of ideas and opinions –

but expertise can be more

difficult to find.

But now, your GMA has

tracked down top-level

comment from around the

world. New for 2013, GMA

Talkback offers invaluable

analysis and insight from

marketing heavyweights and brand leaders.

It runs alongside GMA NewsWire - delivered regularly to

your inbox, and our online news service gma.com

Sally HootonEditor of DMI Publications

Content Director the-GMA.com

GMA TALKBACK:Sarphatipark 44-I, 1073 CZAMSTERDAM,The NetherlandsEditorial tel: +44 (0)20 7193 5402Web: www.the-gma.comEmail: [email protected] News is published by InterpresMedia which incorporates TheGlobal Marketing Alliance, DMImagazine, DMI News, www.the-gma.com, DMI Events, iDi Marketers Forum, Talk Back and Talk Back Live!

WHO’S WHO:Editor Sally HootonDesign Jim CounsellPublisher Matt [email protected] Interpres MediaPrinting Newspaper Club, UK.Copyright Interpres Media.All rights are reserved.Reproduction in whole or partwithout the publisher’s permission is forbidden.Subscribe GMA Talkback is a productof The Global Marketing Alliance.Annual membership of GMA is£179.99 from: www.the-gma.comISSN: 2045-3663

gmaGlobal Marketing Alliance

Mobile retargeting: The modern marketer’s

dream comes true in 2013 04

People prefer marketing messages by

mail and email 07

Take a tour of ‘tech cities’ 10

Trend-spotting redux By Doug Sacks 13

Careful steps on foreign soil 16

Carry yourself with style 19

Talkback FEBRUARY 2013

04 www.the-gma.com

Ninety-five per cent of users leave awebsite without making a transaction,

but once retargeted, they are 70 per centmore likely to complete a purchase. SimonWajcenberg explores how, with 75 per centof the world’s population now having access to a mobile device, the opportunities offered by retargeting on mobile are goingto turn the mobile marketing myth into areality this year.

Retargeting – the ability to get back the98% of shoppers who look but don’t buy orthe 60% who leave their shopping basketagonisingly full but fail to checkout – hasfinally come of age for mobile.

Advertisers have been able to retarget

consumers on desktop for some years, withmuch success. Now, new technology meansthat this success can be translated to thegrowing brigade of mobile shoppers. 2013 isgoing to see mobile retargeting seriouslytaking off.

The speed of mobile’s crusade against thePC has been so rapid that many marketershave been left reeling. But, while the webtook 15 years to disrupt everything, it hasonly taken the smartphone five. During thesefive short years 45% of all American adultshave acquired a smartphone and 18% atablet. These figures are only set to rise:Analysts are predicting that in two years, 90%of mobile users will own a smartphone.

Mobileretargeting:The modern marketer’sdream comes true in 2013By Simon Wajcenberg


New technology, enhanced opportunityM-commerce – the purchasing of productson smartphones and tablets – is booming, asall the sales figures over the holiday season2012 proved. We found that clickthroughrates on mobile ads rose 23% over BlackFriday and Cyber Monday in contrast to afive per cent rise in clickthrough rates on desktop ads over the same period.Importantly, we have found that retargetedmobile ad campaigns generate, on average,an impressive 40% conversion rate frompreviously abandoned leads.

Until now, mobile retargeting has beenimpossible due to strict mobile privacyregulations. However, there is now newmobile retargeting technology that has beendeveloped in compliance with privacyregulations. It securely maps anonymouslyheld keys to a given user. Supporting thistechnology are five servers handling 85million user records and processingthousands of queries per second, per server,at an average query time of five milliseconds.

Advantages of retargeting and mobileprovide real ROI for advertisersSo, while adhering to the highest privacystandards, mobile retargeting enablesadvertisers to re-engage consumers whohave previously shown an interest but neveractually committed. In fact, it is estimatedthat just two per cent of online shoppersmake a purchase on their first visit to an e-commerce site. With mobile retargeting,marketers can take advantage of locationtracking and RTB, to retarget relevant ads atthe right time and place, to the rightaudience and on the right device.

The hard facts are that now brands cantarget and retarget mobile users in 220countries resulting in a potential 60 billionmonthly impressions. And at Clash, wecharge on a results only basis, so ROI isfurther increased.

Simon Wajcenberg is global CEO, ClashGroup – the major New York and London-based full service digital media company.

Analysts are predicting that in two years, 90% of mobileusers will own a smartphone.

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Email and direct mail continue to run neckand neck in the favourite-marketing-

contact-route stakes; holding their ownagainst all newcomers, according to newresearch.

People prefer to hear about some subjectsby email, others by mail and none of theother media come anywhere close to themin popularity.

For example, banking – the subject aboutwhich the largest number of consumerswant to receive marketing information – 35%(up one per cent year-on-year) “are happy”to be contacted by mail and 27% (down from30% in 2011) by email.

These routes are 500% more popular thannearest rivals landline (five per cent up fromthree per cent) and SMS (five per cent upfrom two per cent).

These findings are included in the August8, 2012, wave of the influential fast.MAPMarketing-GAP Report – sponsored byMarketReach, part of Royal Mail and inpartnership with the Institute of SalesPromotion (ISP) and Institute of DirectMarketing (IDM) – which has been trackingconsumer attitudes to marketing andmeasuring ‘the GAP’ (how closely marketersare keeping up with the changes), since2005.

It achieves this by using two onlinequestionnaires; one completed by a fast.MAPpanel of 1,000+ demographically-balancedconsumers; the other by a panel of 350+marketers.

The study reveals that overall, landline isdropping out of favour as more people moveto mobiles, or more accurately, SMS, since

David Cole dissects the information gleanedfrom the latest fast.MAP Marketing-GAP Report.

People prefer marketing messages by

mail and email


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less than two per cent of adults are happy toreceive marketing information via mobilecalls (up one per cent on last year). Othersocial media are even less popular asmarketing contact routes.

Marketers overestimated the popularity ofall marketing media, but especially mobileand social networks which they typicallyexpected to be at least 200% more popularthan they actually are.

“This results of this study really are notsurprising.”, said Matt Bright, Insight managerat MarketReach. “Marketers are rightly,closely engaged with new media channels,but they should regularly consider how theirbehaviour differs from their customers.

“The digital audience is highly diverse andnot all are engaged at the same level. Thissurvey shows us that consumers of all agesstill care about the printed communicationthey receive from companies more than thedigital engagement they have with them.”

80% of people open direct mail, the sameas in 2010; after rising to an impressive 87%last year, the highest since Marketing-GAPwas launched in 2005.

A third of these open all direct mail, while45% only open messages from companiesthey use. Both groups have fallen by four percent year-on-year.

Marketers thought eight per cent fewerwould open all mail, but only overestimatedby two per cent the percentage who onlyopen mail from known companies.

The challenge for marketers is to targetthis digitally-acquiescent minority accuratelyenough to generate a satisfactory return oninvestment; yet be prepared to stick totraditional contact routes, if the newer mediado not offer a close match with prospects.

David Cole is MD of fast.MAP.

The digital audience is highly diverse andnot all are engaged at the same level. Thissurvey shows us that consumers of all agesstill care about the printed communication

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Lists and datasolutions fromlocal Europeanexperts

List Broking | List Management | Data Protection Consulting

[email protected] www.Lists4Europe.com

Come and meet the European partnersin person at stand F60 in the GMANetworking Lounge at Technology forMarketing on 26th/27th February atLondon’s Earls Court Exhibition centre.


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There has been a revolution in recentyears in urban development that is

changing marketing as well as the physicalenvironment. ‘Tech cities’, as they are looselylabelled, have started cropping up in keylocations around the world.

As a global marketing technologycompany that has recently moved intoLondon’s tech city, I wanted to take you on atour of some of the most interestingexamples and provide some ideas andinsight into the likely impact these will haveon digital marketing.

London’s tech city has grown steadilysince its inception in November 2010 whenPrime Minister David Cameron announcedhis vision for the initiative. With the news lastmonth that Joanna Shields, ex-VP EMEA forFacebook, is taking up the helm as CEO ofthe Tech City Investment Organisation

(TCIO), the body set up by the UKgovernment to drive investment inside thecity walls, we can expect some senior-levelsocial media knowledge and know-how toadd a new vibrancy and impetus tomarketers in the area.

From my own experience, this and everyother tech city offers a range of moreintangible benefits over and above theobvious investment and publicity gains. Thefeeling of community among companies ismaking each area greater than the sum of itsparts, while broader benefits of betterinfrastructure and a more establishedecosystem are evolving local communitiesas well as driving fresh talent to companiesin these locations. There is, of course, also arisk that major technology companies coulddrain skills from smaller start-ups, but thegeneral feeling is that the additional

Take a tour of

‘tech cities’Laurent Boninfante (pictured) discusses a globalphenomenon and its impact on digital marketing.

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attention brings more benefit thanchallenges.

Looking around Europe, Skolkovo inRussia is also going to be making waves.Innovations relevant to us marketers thathave already been developed by this techcity include a single platform for allecommerce orders and buildings thatbecome giant screens for marketingmessages. When you consider that Skolkovohas tempted Intel’s formerCEO Craig Barrett onto itsleadership team, MarkZuckerberg of Facebookrecently spent time thereand the 2014 G8 summit isbeing hosted there, thislocation is sure to be uppingits innovative edgeconsiderably over the nextfew years.

Further afield, KonzaTechno City in Kenya, alsoknown as ‘Silicon Savannah’,could have a strident impacton mobile marketing,especially for mobilefinancial services, in years tocome. There are reportedlynow more mobile phones inKenya than there are adults,while the country also leads the world in theuse of mobile payments, with half of alltransactions being conducted in Kenya.

While the rest of the world is eagerlyawaiting the availability of near-fieldcommunications (NFC) to enable easymobile payments, consumers in this ‘mobilefirst’ nation are happily paying for theirweekly shop in supermarkets on theirmobiles via the M-PESA microfinance servicefrom Safaricom, the Kenyan mobile networkoperator.

Harnessing this, and other burgeoninginnovations, is something that both local andglobal businesses will look to Konza for –and if the organisation’s official website isindicative of the sophisticated approach theinitiative is taking, I expect to see this techcity rise to the fore.

Israel’s Silicon Wadi area around Tel Aviv isalready relatively mature due to the country’shistorical capability for technology

innovation. Companies such as Facebookand eBay are actively acquiring technologydeveloped in the area meaning thepurported aim to replace, rather thanreplicate, Silicon Valley cannot beimmediately dismissed. Israel is potentiallyseeing a faster innovation curve in areassuch glass-less 3D content viewing(Eyevector), personalised ecommerce(C&ST), location-based advertising (Mobli)

and facial recognition, all ofwhich will play a biggerrole in our future digitallives.

China’s incredible 20-year history in creatingtechnology parks cannotbe ignored either. With sixmore currently in theworks, in addition to the 88further state-levellocations, these parkscreated revenue of $2.06trillion in 2011, proving theincredible value of suchinitiatives, should anyonestill be querying this. Thecountry already leads theworld in patentapplications, while its fast-growing economy and

innovations in areas such as social gamingand mobile apps will mean other countrieslook to China for what’s coming next inthese sectors.

And last but not least, for those wanting tostart out truly global, there is even afascinating project underway to develop abrand new tech city on a vessel anchored ininternational waters just off the coast ofCalifornia. Backed by Peter Thiel, founder ofPaypal, Blueseed is currently focusing onapplications from the tech start-upcommunity, but investment partners such asLumia with its strong focus on marketing,data and content, show that marketingcompanies will also be a future focus.

Running global marketing programmesfrom international waters could be a veryinteresting aspect of this initiative!

Laurent Boninfante is EMEA managingdirector, Acquisio.


“When you considerthat Skolkovo has

tempted Intel’s formerCEO Craig Barrett ontoits leadership team,Mark Zuckerberg ofFacebook recentlyspent time there andthe 2014 G8 summit isbeing hosted there,this location is sure to

be upping itsinnovative edge”


Asluggish US economy showing signs ofemerging from a long hibernation, but not

yet fully awake, compounded by reports ofdouble and triple dip recessions in someregions of the world, makes me look at trendsto see where the money is or where it may beheading. Marketers, like bank robbers, need toknow where the money is, in order to besuccessful.

Almost a year ago, IBISWorld reported onthe ten fastest growth industries in the US.Let’s review them here, although I don’t seemany of these as being able to right America’seconomic ship. It’s a big ship and these aresmall amounts of ballast. But many underlielarger trends which we can set sail upon.

• Generic Pharmaceutical Manufacturing• Solar Panel Manufacturing• For-Profit Universities• Pilates & Yoga Studios• Self-tanning Product Manufacture• 3D Printer Manufacture• Social Network Game Development• Hot Sauce Production• Green & Sustainable Building Construction• Online Eyeglasses and Contact Lens Sales

1.The Baby Boomer generation is ageing.And, although they like to believe that 60

is what 40 was a generation ago, anyone whois 60 or more knows that’s a bunch ofmalarkey. Combine the ageing thing with theAmerican obsession with health, shake welland you get a potent cocktail. We areobsessed about our health. A nation of ageinghypochondriacs. Obsession with healthshould not be confused with actually beinghealthy or adopting healthy lifestyles. But weat least want to think we are. So an ageingdemographic and ever more obsessive

thoughts about health equals pure gold forsome industries and accounts for genericdrugs, pilates & yoga, self-tanning products,3D printers (used for medical technology) andonline eyeglasses making this list. But really,online anything is a growth category and willonly get stronger. Here’s a thought – in a yearor two the ageing boomers will be dying off.Maybe mortuary services should make thenext Top 10 list.

2.Back to nature, awareness that thedestruction of the environment erodes

our quality of life, and the lessening of ourreliance on foreign oil are all reaching newheights of public acceptance which will drivethe solar panel and Green buildingconstruction sectors along with all forms ofthe ‘Buy Local’ and ‘Eat Healthy’ (see ageing,hypochondriacal baby boomers), and ‘Savethe Farmland’ movements. This is one trendthat crosses generational boundaries, whichcould give it some staying power. However,less destruction of the environment seems tobe in direct contradiction to some of thetechnologies that will, theoretically, reduceour reliance on foreign oil. These includehydraulic fracturing (fracking) to release oiland gas deposits at the cost of serious watercontamination and human health issues andbuilding a contested pipeline from Canada totransfer the oil derived from shale.

3.Hot sauce production. Well, as theRepublican Party has learned a bit too

late, the US demographic is not changing. ItHAS changed. Latino culture is here to stayand growing super-fast compared to white,black and Asian groups. Plus Latino tastes infood, music and culture have, by the force ofsheer numbers, gone mainstream. Politicians

Sailing theeconomic shipGMA columnist Doug Sacks (pictured), reporting from theUSA, takes a look at trends marketers should be aware of.

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will fall all over themselves cozying up to thisdemographic during the next four years, aswill marketers for a generation to come.

4.Social network development, along withmobile phone anything, has to be a huge

growth area. But, I predict one will longoutlast the other. Social networking will fizzlewithin a few years as the college crowd getsjobs and becomes too busy to be so self-absorbed. And business-related socialnetworking sites have yet to prove their worth– and, in fact, may not have any outside of aninflated stock price making investors happy.But reliance on a super-smart phone withmore and more capability is here to stay.

5.For-profit universities indicate aferociously competitive job market (for

both college graduates and late-in-life careerchangers), plus its focus on online coursesfeeds into the continuing reliance on theInternet. Looks like a win-win for that one atleast until the economy recovers. The realvalue of those ‘diplomas’ remains to be seen.

6.Forbes adds private industry sectors like:support activities for mining, petroleum

products/wholesalers/gasoline stations,industrial machinery, cattle ranching,employment services, computer systemsdesign. Commodity prices hitting sky-highlevels, growing interest in domestic oilproduction, bringing American jobs back tothe US are driving some of these. Computerdesign and employment services sectorgrowth are self-evident.

7.One last trend that is here to stay also hasto do with demographics. If you want a

job, look for a woman to hire you. USwomen-owned businesses are outpacing allother business sectors and have been for thepast decade. Consider these facts aboutwomen business enterprises (WBEs):

• WBEs employ 7.7 million people. That’s 40%more people than the three largestemployers – McDonald’s, IBM and Wal-Mart – combined

• There are 8.3 million WBEs in the UnitedStates

• WBEs generated $1.3 trillion in 2011 alone• WBEs will create 5.5 million new jobs by

2018, representing 1/3 of all new jobsexpected by the Bureau of Labor Statistics.

Measure on a new scale.What happens when an agency mixes best-in-class analytics, leading technology and customer strategy with digital media excellence and provocative creative? Visible results. Of entirely new proportions.Expect more. merkleinc.com.


16 www.the-gma.com

There are a multitude of factors to considerwhen adopting a multi-channel approach

internationally. Decent translation of contentacross channels is a first obvious step, butunderstanding cultural differences andimplications is far more crucial and beneficialin the long term.

Poor cross-culture marketing can have asignificantly negative impact on a brand. Alack of cultural awareness and poor translationfor example, will mean marketers are unlikelyto see much bang for their buck. Andremember, the human touch is required whencommunicating to any consumer and peoplearound the world have very different nuancesand perceptions of this. It is also important tounderstand regional differences withincountries . . . not every country is as small asthe UK!

It may be a tough call, but is your product orservice actually right for all the countries youplan to target? It may be tempting to treat‘foreign’ as one big targetable land mass, butyou’d be very wrong to do so. If your instinctsare telling you that your product or service just

won’t be understood in a particular country,then it’s unlikely you’ll see any ROI and willwaste your valuable budget that could bespent in more effective ways.

If you are convinced that international reallyis right for you, it’s important not to just shootand run. Digging deeper for facts is nowcrucial. Understand your target audience’spreferences. Research where you can. WillThai recipients respond better to social mediaor direct mail? How will your targeted contactview their communications? On their phone,on their laptop? At work, at home? Considertime differences and public holidays, too –before you press ‘send’.

Once you have understood the variances,translated and adapted your content, strategyand approach to fit the culture and targetaudiences, the launch of your internationalcampaign is the logical next step.

But wait! Have you considered your use ofdata? Are you aware of relevant data laws inthe countries you are targeting? Germany, forexample, is a data danger zone when it comesto sending unsolicited communications.

Careful steps onforeign soilLook before you leap into international multi-channelmarketing, says Steve Kemish (pictured). Tread carefully and you score sky-high ROI.


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Trending countriesSo which countries are catching the eyes ofbig-time investors and large corporations?These ‘next generation countries’ will begin toemerge and impress in the world oftechnology and trade and therefore marketing.

Russia is determined to shake off its ‘breadqueue’ associations and become a real part ofthe global economy with big investment intrade. The retail market there is booming,along with luxury car sales. Western brands arenoticing Russians craving modern living,helped by an influx of credit and higher levelsof disposable income. The younger Russianpopulation has a strong work ethic andunderstands that studying is the key toimproving their prospects. This is driving downunemployment rates and improving economicgrowth. Communication links have beenimproved throughout the country and, in thepast decade, businesses are developing andgrowing, due to faster internet connectionsand better communication links.

Without travelling too far south, we arrive inTurkey. After years of gradual economicgrowth and rising incomes, Turkey is nowbecoming a country to watch out for. Thedigital and advertising market is growing, withheavy investment in creativity and IT. Search

engine advertisement and social media arepopular throughout Turkey and the youngergeneration is fashionable, modern andtechnologically well connected.

Angola is another emerging marketplace tokeep an eye on. Following the end of the civilwar in 2002, Angola is now a stable investmentenvironment with diamonds and oil making up60% of the economy. Key trading connectionswith Canada meant it was one of the world’sfastest growing countries just before thefinancial crisis hit.

Whether it is Turkey, Angola, Russia – oreven Mars in the future! – multi-channel rulesmust still apply. Understand your targetaudience and what makes them tick, whenand how. International is not just one bigdartboard for you to throw all your arrows atand hope to hit the bull’s eye. You wouldn’t runa campaign in this way in the UK, so don’t fallinto the ‘one size fits all’ trap abroad. Do yourresearch, take your time, gain knowledge andunderstanding, and only then will you stand achance of international success.

Steve Kemish is managing director at Cyanceand will be presenting at Technology forMarketing and Advertising (TFM&A) at EarlsCourt 2 in London on February 26. Hispresentation, ‘How vital it is to embrace amulti-channel approach?’, covers currenttrends and tricks you need to arm yourselfwith for 2013.

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DRTV (Direct Response TV) is often seenas the poor relation of traditional high

budget brand advertising, but in the past fiveyears, the increased use of the internet byconsumers has narrowed the gap. This hasrecently led to the creation of a new low costgenre of TV advertising called BRTV (BrandResponse TV).

These are 30-second spots that promote aURL to drive viewers with tablets orsmartphones to visit a website and make apurchase. With BRTV, the focus is less onname recall and more about driving onlinetraffic. This type of ad qualifies as ‘directresponse’ and allows the clients’ mediaagency to purchase airtime that can cost asmuch as 50% less than fixed-position brandinventory in which a guaranteed TV audiencelevel is purchased. With BRTV, there is usuallya more effective viewer engagement via theadvertiser’s website and this more thanmakes up the difference in spend levels.Additionally, the airtime discount minimisesrisk and allows first time advertisers to safelytest TV.

At ARM Direct, our experience is that ahefty 20% of additional online response isgenerated within 10 minutes of a well-madeBRTV spot being transmitted. Nielsen tells usthat some 60% of television viewers watchthe box and surf the Internet simultaneously

and we find that the multitasking 18-35-yearage group react positively to BRTV ads –especially if these are highly creative andslightly edgy.

Younger viewers especially are happy toimmediately visit a BRTV advertiser’s websiteand just as importantly share what they’vefound with their friends on Facebook &Twitter. Results are even more powerfulwhen the BRTV ad offers a free sample orspecial discount.

We’re on a mission to make BRTV moreaffordable in the UK and one of our recentsuccesses has been to help a dynamic youngonline company to significantly grow sales of

Carry yourselfwith style(thanks to BRTV)Digby Orsmond explains how best toharness Brand Response Television.

20 www.the-gma.com


their hero brand.Founder, Claire Barratt, took to social

media in 2011 to sell her unique customisedClaireaBella bags and Chloe Simms from thehit UK TV show – The Only Way is Essex –bought one and was ‘papped’, with the photoappearing prominently in a nationalnewspaper. Claire said: “I was bowled overwith the immediate response online! A fewdays later, Chloe was also spotted in series 2of the TV show with her bag and my Twittertimeline went crazy!”

Later that year, Claire got in touch with anonline gift website called ToxicFox.co.uk andthey were soon collaborating and extendingthe range further.

Clinton Njie (CEO of ToxicFox) decided toexplore whether television was an affordableoption and, in September 2012, he appointedARM Direct to make a stylish 30-secondBRTV creative, using the catch phrase, ‘Carryyourself with style’, featuring three youngmodels and fun character animations by NickSneath.

For a modest media budget, this wastested on selected UK TV channels andToxicFox website sales increased significantlywith ClaireaBella fast becoming a ‘must have’bag in the all-important pre-Christmas onlinesales period. This initial test proved sosuccessful that ToxicFox is now rolling out a

February 2013 campaign and plans to makefurther BRTV ads to support the brand later inthe year.

Research ‘TV and Online: better together’,conducted by Thinkbox & IAB, confirms thatTV advertising can drive people online in ahost of ways, the benefit being that thesmartphone consumer journey is now muchshorter and viewers often respond to TV adsas and when they are seen in real time. Fromtheir analysis, it became apparent that therole of TV in driving online response hasbeen undervalued. Partially, this is down tothe fast changing technological landscapeand the huge increase in smartphoneownership. Plus, BRTV campaigns are basedon hard facts as the response numbers don’tlie – meaning that results can always beimproved month-on-month by cutting outthe slow performing TV channels and testingothers.

Television’s impact on website responseall too often slips under the radar but thereality is this – making a low-cost highlycreative BRTV ad can help drive significantonline traffic, especially as all BRTV adsshown on broadcast channels can nowinstantly be searched, shared and copiedadding a whole new dimension to agencyaccountability. At ARM Direct we welcomethis new challenge.

Your marketing programsextend beyond yourdomestic market…

shouldn’t the capabilities of your data managementpartner do the same?

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