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TRANSCRIPT
FMCG & Media
in association with
28 February 2012
...from companies such as:
Debenhams
L'Oreal, Starcom
Carat, Nestlé
P&G, ITV
Superdrug
Telegraph Media Group
CBS Outdoor, Aegis Media
50 delegates in total...
FULL HOUSE
Chair
Torin DouglasMedia Correspondent, BBC
Panel
Chris AlliottSenior Telecoms Analyst, RBS
Dan HagenHead of Planning, Carat
Angela MaurerHead of Innovation, Tesco
Claire ValotiManaging Director, O2 Media
Jason WillsSenior Brand Manager, Desperados & Tiger Beer, Heineken UK Ltd
Opening presentations
Nick LaneChief Strategy Analyst and Head of Client Services, Mobile Squared
Caroline van den BerghStrategic Account Director, Golden Gekko
This event discussed the opportunities available in mobile for FMCG brands, the customer journey - in-store, online and on mobile, how mobile can help to build CRM and �nally the impact that Project Oscar will have on retailers, agencies and media owners.
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Nick LaneChief Strategy Analyst and Head of Client Services, Mobile Squared
UK Scene Setter,FMCG & Mediapresentation
Speaking from the �oor at the event, Mindshare managing director, Ita Murphy, pushed the panel on ROI for mobile marketing in the FMCG area - one of the biggest stumbling blocks for agencies. She said clients are interested in mobile ideas around FMCG advertising but still need a clear sales measure.
The panel agreed that this is a key issue for the FMCG and mobile sectors. Jason Wills, senior brand manager of Desperados & Tiger Beer at Heineken UK Ltd, said he �nds it hard to justify social and mobile ad campaigns because of a lack of solid data. "I am just doing it by instinct at the moment... in the short term, this is a real challenge for the industry".
Dan Hagen, head of planning at Carat, (right) talked of three techniques (some future-looking) to solve the problem.
Firstly, econometrics, which Hagen says is worthwhile despite some di�culties around input and data. Secondly, agent based modelling (ABM). The concept of ABM has been around for a long time but there has not been
mainstream adoption by the marketing communications industry. ABM aggregates disparate data to create 'agents' (simulated people) that are representative of the real world population. Hagen described ABM as "fascinating" and said Carat is trialling it with two clients at the moment, and hopes to have working case studies late this year.
ABM is designed to understand individuals, which should allow marketers to understand how di�erent user segments behave as a function of marketing campaign exposure.
And thirdly, attribution modelling based on a single cookie. "The reality is that we don't have a single cookie
Liz JaquesNews Editor, MediaTel Group
3 techniques to measure ROI
but we are trying to merge cookies using various data like sign-ins... it gives us a really clear picture of digital," he said.
Hagen sees a future where attribution models cover multi-platforms - mobile, internet, television - potentially allowing the industry to track a much larger part of the customer journey, although this will no doubt raise some concerns around privacy issues. He accepted that there
remain problems with all three techniques in terms of measuring ROI but said "we need to keep trying".
Claire Valoti, managing director at O2 Media, reiterated that tracking the full customer journey through to sale is the "holy grail" and said it is a "big priority" at O2. However, she admitted that there is currently a lack of knowledge about how mobile links with online and social.
A question from P&G's marketing manager, Western Europe ecommerce, Gareth Barker, sparked a discussion about mobile partnerships. Barker wondered where the budget should come from to increase awareness of mobile technology and services to consumers.
Dan Hagen, head of planning at Carat, said it was a di�cult question to answer but urged all parties to be open with each other - to invest time to drive awareness together.
Claire Valoti, managing director of O2 Media (right), said from her point of view it is important to have "open and honest conversations with brands" to create two-way partnerships - adding that O2's Priority Moments is a "great example of how it can work".
Priority Moments allows O2 customers to sign up for "front of the queue" tickets to events and gigs - accessing tickets up to 48 hours before general release. O2 uses data from the registration to target customers so they "don't miss out on gigs and events [they] might like".
Chris Alliott, senior telecom analyst at RBS, suggested that the current marketplace may require a more holistic view on how advertising and marketing budgets are deployed.
He believes it should be a joint investment of operators and clients to increase awareness of what is on o�er.
Alliott asked Barker whether P&G's marketing department is re-structuring to take advantage of the current market. He responded with a yes but said that marketing budgets are under pressure - explaining that it is hard to invest in 'media driving' campaigns.
P&G are measured on getting the advertising message across - if they also need to spend money on promoting how customers might access that communications message through something like augmented reality, it is a hard sell internally. Although he said both media and marketing divisions are in a better place to approach the new landscape now.
Tesco's head of innovation Angela Maurer con�rmed that the supermarket giant is rolling out customer Wi-Fi in stores. In December, the free Wi-Fi service was made available in more than 200 Tesco Extra stores around the country.
The service, powered by O2 Wi-Fi hotspots, allows Tesco Clubcard holders to log on using their Clubcard number for unlimited service - which of course gives the supermarket access to shoppers' data. Non-Clubcard holding customers will be able to use the service for free for 15 minutes each day.
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Liz JaquesNews Editor, MediaTel Group
Time for partnerships...
Liz JaquesNews Editor, MediaTel Group
Tesco is rolling out free customer Wi-Fi
Maurer (right) discussed the challenges for retailers, such as limited mobile reception in many out of town stores. By making Wi-Fi available, customers will be able to use services such as price comparison apps and mobile/online coupons.
Tesco trialled the service last year and received "lots of positive feedback" from customers. The results from the trial showed that customers mostly used Wi-Fi for comparing product prices and reading reviews. 71% of trial users accessed the service via a smartphone, while 11% used a tablet to go online in-store.
Tesco have been innovating in this area and while an in store location-based coupon targeting experiment failed, Maurer was clear that the supermarket is keen to assist customers and improve their shopping experience by helping them access mobile services.
Claire Valoti, managing director of O2 Media, said supermarkets are in a great position to target customers in-store, though she added that "it needs to be the right bene�t". For her, price comparison is the "obvious opportunity", though by scanning barcodes it could also allow customers to get stock updates and order products. There are also possibilities around checking-in to a store, getting loyalty points and special deals. This will no doubt become more of a reality when mobile wallets are used more widely.
Maurer talked of a joint project between Tesco and Microsoft around the customer shopping list, which directs people around stores, though she said the priority is making all new services easier for consumers.
She also admitted that one of the biggest challenges at the moment is coupons on mobile phones, which would require the supermarket to upgrade all of its tills - though she knows that the great advantage of having this technology is "talking directly to the customer".
Meanwhile, Jason Wills, senior brand manager - Desperados & Tiger Beer, Heineken UK Ltd, cited the West�eld app as a current success story - "a great example of an excellent consumer experience, which is seamless (and has been made possible by all parties working together)".
Valoti also praised the Starbucks app, which gives customers loyalty points and discounts, for being a "great experience".
The UK's largest mobile operators are due to submit plans for a mobile payment system for European regulatory consideration next week, though they face continued opposition from rival company Three.
Everything Everywhere, Vodafone and O2 hope to gain EU approval for the joint mobile payments platform in the UK, code-named Project Oscar, which would allow them to launch mobile wallets for UK customers. Historically, telco
companies have been reluctant to co-operate, but creating a common platform for retailers and advertisers makes sense for operators, according to Chris Alliott, senior telecom analyst at RBS (left).
Alliott explained that this is an opportunity to add incremental value if mobile operators can get it right. Key bene�ts for mobile operators include the �exibility to promote their own wallet and create brand loyalty with promotions and coupons; and the potential for a slice of the action in terms of advertising revenue.
A standardised platform should be appealing for advertisers, giving them a huge reach and the chance to target individuals based on their shopping habits and location, although there are privacy issues with consumers' data - who owns it and whether customers
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Liz JaquesNews Editor, MediaTel Group
Project Oscar
can opt-in. The clear reason for customers to sign up is that it makes it easy for them to pay for items and receive relevant discounts and coupons.
Claire Valoti, managing director of O2 Media, suggested that the Starbucks app for example has the scope to go beyond loyalty to placing orders for regular customers (providing they are a creature of habit) and allowing them to pay with one swipe.
This does of course rely on retailers signing up and implementing the new technology - it makes products more accessible but there will be an upfront cost for the equipment to make this possible.
It is still unclear whether payments would go straight onto your mobile bill or added to your visa bill. It is also unclear how advanced Project Oscar actually is, although if the technology is in place and agreements have already been provisionally signed, once (and if ) they get approval they should be able to move quickly to roll this out. There was talk of a year to 18 months. It has been said that the operators are keen to launch before Google Wallet.
According to Alliott, this project has the greatest potential to be pulled together and delivered within a reasonable time frame. He believes it will be a driver for mobile advertising - calling it "an appealing prospect for both advertisers and retailers".
An estimated 50% of all mobile phone users are now using smartphones to access the internet, which has enabled the growth of a new frontier in augmented reality, according to Golden Gekko's Caroline van den Bergh (below).
The panel picked up on van den Bergh's scene setter presentation. Angela Maurer, head of innovation at Tesco, spoke about the supermarket's augmented reality o�ering. "Augmented reality is a very exciting topic - it is a huge opportunity for retailers," she said. "With Tesco it allows customers to try before they buy. It is an important element to use because it reassures customers and they can visualise items they want to purchase."
Tesco trialled the use of augmented reality technology in six of its stores at the end of last year to allow shoppers to see a 3D version of products that were available to buy from stores but that were not on display, but Maurer admitted awareness needed to be higher and this may need to be driven by other media channels. For her a "brilliant example" of a successful augmented reality campaign was the Lynx Fallen Angels ambush at London Victoria.
However, Tesco's innovation boss warned that it is vital for retailers and brands to make the experience simple for the customer. Dan Hagen, head of planning at Carat, echoed this view - saying augmented reality is "really interesting" but has the potential to go the same way as QR codes - something he described as "having potential but used badly". "Don't do it because it's cool - do it to add value," he urged. "Brands need to add value to consumer experience for it to work."
Meanwhile, Jason Wills, senior brand manager at Desperados & Tiger Beer, Heineken UK Ltd, advised brands and retailers to be "really clear" about what their marketing objective is before delving into augmented reality. "It needs to have a real added value and brands need to be really clear how it �ts with other channels in their campaign... that is the key to success," he said.
For Chris Alliott, senior telecom analyst at RBS, the opportunity lies in achieving engagement and brand loyalty. Alliott also noted that there is a danger in talking about new technology too early - saying it is important that operators and manufacturers actually deliver on the promised functionality - to advertisers and consumers.
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Liz JaquesNews Editor, MediaTel Group
Augmented reality - 'Don't do it just cos it's cool'
The Pot Noodle campaign
The brief…
• Our challenge was to boost Pot Noodle’s Easy Street campaign targeted
at 18-34yr old cinema-going men
The solution…
• We complimented the national cinema campaign with push texts, picture
messages and proximity messages to make the cinema ads work harder
Results…
1. More people remembered the campaign: people who recalled the
text were twice as likely to remember the cinema ad.
2. More people interacted with the campaign: people who’d seen the
cinema ad were twice as likely to click through to watch the Easy Street
video
3. And more people bought Pot Noodles: by combining the cinema ad
with texts, we doubled the percentage of people persuaded to buy a Pot
Noodle
Colgate Sensitive Pro-Relief
Sampling Case Study
Target Audience - ABC1 customers 35+ years old
Smartphone Users
CTR – 9%
Customer Journey