ASIAN STRATEGY

REPORT 2017INSIGHTS FROM THE 2016

WARC PRIZE FOR ASIAN

STRATEGY

SUMMARY VERSION

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ECONOMIC HEADWINDS CHALLENGE ASIA’S MARKETERS

LOWER COST CHANNELS GAIN POPULARITY

INDIA’S DIGITISATION OFFERS NEW OPPORTUNITIES

BRAND PURPOSE IS A DELICATE BALANCE

A decrease in campaign budgets among this year’s entrants is one of the most notable trends to emerge from the 2016 Warc Prize for Asian Strategy. With Asia’s economic slowdown creating uncertainty in many countries across the region, brands appear to be doing more with less. Sales metrics continued to drive campaigns although market share and customer gain have become increasingly important as brands try to protect their position in challenging times.

Asia’s digital revolution continues at pace, with smartphone adoption and increased internet penetration offering marketers new opportunities. Social media was used by two-thirds of all entrants and was the most used lead channel among shortlisted entrants yet television remained the most popular lead media channel across all entries. Online video increased by 10% as a lead media channel from 2015. A trend to emerge from this year’s entries was a move towards lower-cost or free channels. The average number of channels used by shortlisted campaigns in 2016 dropped to just six, the lowest in the history of the Prize.

While India still relies heavily on traditional media to connect with mass-market audiences, the country is now the world’s second largest smartphone market behind China. With millions of people coming online for the first time, new audiences are being created. India’s marketers are capitalising on this: the use of social media in Indian campaigns overtook wider Asia for the first time this year. Online video is another channel to watch in India, with 38% of campaigns using it, up from 29% last year. Creative based on emotive storytelling remains a consistent hallmark of many Indian campaigns.

Brand purpose has been a hot topic among the region’s marketers, particularly as a way to engage with the lucrative millennial demographic, who are more educated and less traditional than previous generations. Indian campaigns in particular have sought to align brands with emerging cultural narratives, particularly the changing role of women in society in recent years of the Prize. However, several judges noted that some entrants struggled to connect core brand values to a relevant story, suggesting that marketers may need to rethink how they approach brand purpose in 2017.

Four things to take from this report

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The 2016 Warc Prize for Asian Strategy attracted more than 200 entries from across Asia and India – a new record. The breadth of categories and markets represented a snapshot of the best strategy in the region, and offered unparalleled insight into how the region’s marketers are responding during a time of challenge and change.

Several years of demographic and cultural change have offered new creative opportunities for advertisers: smartphone adoption is soaring, the region’s middle class is growing and new cultural narratives are gaining mainstream popularity. Brands are also continuing to tap into the ‘brand purpose’ trend, aligning themselves with societal as well as commercial missions. But 2016 saw economic headwinds, particularly in China, creating a more inclement business climate across many markets. The effect of Asia’s economic slowdown became apparent throughout 2016, and, as growth dwindles, consumers in many countries

across the region are spending less. Many brands are thus facing budgetary constraints. It is against this background that several new trends emerged from this year’s Prize.

Chapter One of this year’s report reveals that Asia’s marketers are seeking to do more with less. As the region’s slowdown bites and budgets shrink, this trend is likely to continue. Nearly half – 44% – of this year’s entrants had campaign budgets of less than US$500,000, up from just 25% in 2015. Just two years ago, in 2014, 26% of entrants had campaign budgets of more than $3 million. In 2016, just 9% enjoy a budget of more than $3 million. Sales metrics continue to drive the region’s marketers, in line with previous years, but market share and customer gain are increasingly important as brands seek to hold to their position amid crowded categories and economic headwinds. As in previous years, judges rewarded campaigns that could demonstrate effectiveness with hard metrics

Executive Summary

– notably market penetration, market share and revenue.

Chapter Two shows notable changes in Asia’s channel landscape, with many entrants looking towards free or lower-cost platforms to get the messages out. The average number of channels used by shortlisted campaigns has also dropped to just six – the lowest recorded since the inaugural Prize six years ago. Earned media, in particular, is enjoying renewed popularity: more than half – 53% – of the 2016 shortlist cited PR as a soft metric, up 20% from 2015. The resurgence of content marketing – used by 35% of shortlisted campaigns – reflects the presence of user-generated content and branded video among this year’s entrants. While Asia has lagged behind Western markets in content marketing, the uptick suggests marketers may be finding an answer to ROI concerns: a record 21% of entrants tapped it as their campaign’s lead media channel in 2016, up from just 4% in 2015. Though television remains the most popular lead

channel overall, it registered a 9% drop from 2015 while online video spiked 10%. While the data doesn’t confirm a direct correlation, online video is a more cost-effective medium for marketers across the region to offer TV-style creative on more limited budgets.

Chapter Three explores the strategic approaches of India compared to the rest of Asia. India’s ongoing digitisation is reflected among this year’s entries: social media was used by a record number of Indian campaigns in this year’s Prize, with social media usage in entries from India overtaking usage in wider Asia for the first time. A channel to watch among Indian entrants in 2017 will be online video – in 2014, just 29% of Indian entries used online video but in 2016, 38% did. The award-winning Make Love Not Scars campaign made the most of this trend by using video tutorials, which are popular in India, to deliver a powerful social message. Internet penetration in India, while rising, is still relatively low (around 35%)

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so most mass-market campaigns continue to include a strong traditional media component. But as India’s digital revolution continues, millions are coming online for the first time every year and India’s marketers are looking to connect with these new audiences in innovative ways. Emotion remains a key creative approach on the subcontinent: it’s cited in 51% of all Indian entries, compared with 35% of entries from the rest of Asia. Several campaigns, including Grand Prix winner ‘Share The Load’ by P&G-owner Ariel-Matic, used emotion to challenge societal perceptions and make an impact.

Chapter Four explores the rise of ‘meaningful marketing’ across Asia, as marketers look to tie their brands to a wider cultural or societal narrative. Challenging societal norms or taboos has been popular in previous years of the Prize, especially among Indian entrants, and that trend continued in 2016. Four of 16 awarded campaigns in 2016 took a purpose-driven approach and 18% of Indian campaigns

TOP MARKETS IN THE 2016 PRIZE

All entries vs shortlist (%)

India

Philippin

es

Singapor

e

China

Mala

ysia

Japan

Vietnam

Hong K

ong

Thailand

0%

60%

15%

30%

45%

23

556

88

10

46

66

33

6

9

53

12

3

All entries Shortlisted

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My big takeaway was that brands and their communication agencies are actively partnering on creating a ‘trust halo’ around their brands. And the good news is that brand owners are giving their partners the creative flexibility to make this happen successfully. Creativity was demonstrated both in terms of the content, context and media environments used.

The geographic source of entries was good – more could be actively sourced from countries outside of India.

The diversity of channels used was great – we expect that, going forward, even within traditional mass media channels, real ‘stories’ will become more prevalent to engage consumers.

Finally, there is value to defining a tight and consistent set of Key Performance Indicators across brands,

geographies and categories to ensure better like-for-like comparisons.

I was impressed not only with the breadth of the data but, more importantly, with the impact that it had on business – they crunched all that data and questioned why certain things worked and others didn’t. That, from a business strategy level, was very powerful. The chair of the judges:

Sanjeeb Chaudhuri, Global Head of Brand and Chief Marketing Officer, Standard Chartered Bank

cited advocacy as a creative approach, compared with just 8% of campaigns from wider Asia. The modern Indian woman, particularly in cities, is more educated and empowered and has money to spend, so India’s marketers are seizing the opportunity. Brand purpose has also been a talking point across the region in the last few years, particularly as a way to engage with the lucrative millennial demographic. But has the trend reached saturation point? Perhaps. Judges in the 2016 Prize warned that marketers must ensure that the purpose they align themselves with is a good fit and gels with the brand promise. With economic slowdown and political upheaval defining 2016, how marketers will respond may offer interesting new directions in the 2017 Prize.

The 2017 Warc Prize for Asian Strategy will be open for entries from early April.

VIEW FROM THE CHAIR OF THE JUDGES: SANJEEB CHAUDHURI

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Ariel Matic: Share the Load

GRAND PRIX & ASIA FIRST AWARDSHARE THE LOAD

Advertiser: P&G India Agency: BBDO IndiaCountry: India

P&G’s laundry detergent brand Ariel asked whose responsibility it is to do the laundry, highlighting the wider issue of gender inequality. It encouraged Indian men to ‘Share the Load’.

CHALLENGEAfter Ariel’s main competitor increased its appeal to female consumers of laundry products in India, Ariel needed to change strategy. What’s more, Ariel wanted to lead with its most expensive brand – Ariel Matic. Its objectives were clear: get the attention of urban women, engage them in conversation about the brand, drive brand relevance and, ultimately, increase sales.

SOLUTIONThe campaign started with a provocative film, which aired on TV, online and in cinemas, that asked: ‘Is laundry only a woman’s job?’ Ariel continued the theme with a ‘his-and-her’ pack, which gave instructions on how to ‘Share the Load’. It also collaborated with several clothing retailers to add care labels that read ‘can be washed by both men and women’. The brand also hosted events where men could learn how to do the laundry. Several influential Indian couples became ambassadors for the campaign, giving it a further boost.

RESULTSThe campaign stimulated conversations across the country, with print and TV news discussions and conversations on social media taking place about Ariel Matic and the ‘Share the Load’ campaign. It also fed into the brand’s purpose to ‘Make Laundry Easier’ and addressed a deep social issue, while staying within Ariel’s own category and maintaining authenticity.

Ariel benefitted from $10 million in earned media publicity and 1.57 million

men pledged to share the load. Thanks to the increase in purchase-intent, Ariel more than doubled value and volume sales, growing 106% and 105% respectively.

Read the full case study on Warc

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The 2017 Asian Strategy report is an exclusive analysis of the best strategy in the region, offering unparalleled insight into howthe region’s marketers are responding during a time of challenge and change.

The full report includes chapters on:

1. The state of Asian strategy

2. New channels on the rise

3. India vs. East Asia

4. Meaningful marketing in Asia

5. Winning case studies of the 2016 Warc Prize for Asian Strategy

About Warc’s Asian Strategy report

This is a summary version. The full report is available tosubscribers of warc.com who can download it here.

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