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ADMAP OCTOBER 2012

China’s authentic advocatesConsumer attitudes and the media landscape in China present unique challenges. An authentic approach to word-of-mouth marketing using advocates can be a potential game changer, delivering growth at a fraction of traditional media spend, writes Asit Gupta of Advocacy Asia

CHINESE ADVOCATES

WORD-OF-MOUTH MARKETINGFOCUS

Globally, word-of-mouth recommendations of friends and family have been consistently rated as the number-one driver of purchase.

According to Nielsen’s 2011 Global Trust in Advertising study, 92% of people trust WOM recommendations from friends and family, while the same figure for TV is almost half at 47%, and for online video it is 36%.

However, WOM of friends and family is far more powerful in China and other emerging markets, compared with developed markets. A 2010 McKinsey study on mobile phone purchase showed that WOM was the leading factor at all stages of the consumer decision journey in developing markets, while in mature markets it was third (Figure 1).

In another McKinsey study, 68% of Chinese consumers said they would consider friends and family recommendations when choosing a moisturiser compared with just 38% of respondents in the US and the UK.

There are three key reasons why WOM is more powerful in China, compared to other markets.

1 History of information control bygovernmentMost people in China under the age of

70 did not see any commercial advertising until the early 1980s. Even by the end of that decade, there was only one TV channel and very few magazines and newspapers. Even when more channels became available in the 1990s, the content was controlled. Censorship of programming continues even now. Thus, Chinese consumers have long trusted the informal word-of-mouth within their social network more than any other

means of communication. Over the last decade, the digital revolution has massively boosted the scale and speed of this social exchange of information and opinion. It is like Chinese whispers on steroids.

2 Product proliferation, contamination and counterfeiting Chinese consumers are faced with

a huge amount of new products, some of which are in categories they have never tried before. Mouthwash, for example, is used by less than 10% of Chinese households. Additionally, counterfeiting and sub-standard manufacturing are not uncommon. Thus knowing that a trusted friend has had a positive experience with a new product is a huge reassurance.

3 A culture of fitting in ‘A nail that sticks out gets hammered in’ might be a Japanese proverb, but it

applies even in China. In general, people find comfort and security in group think and following (as opposed to leading). Individualism is not as prized as in the West. Taking cues from what others around you are consuming is the norm.

In a market like China, where the challenge facing MNC companies is habit change and habit creation, marketers need a medium which has high reach, high depth, and is also trusted. Historically, TV advertising has played that role in most markets. However, brands in China have faced double-digit annual inflation in TV media costs for the last ten years. Even MNC companies with deep pockets cannot afford to support their brands with regular TV

support beyond the top 20-25 cities (which account for only 20% of the population). For example, Johnson & Johnson’s leading skincare brand Neutrogena is supported with TV advertising in only top six cities. To stand out and take share from well entrenched players like P&G’s Olay and L’Oréal, it needs to cut through with heavy media weights. However, even maintaining SOV in the current six cities is challenging, let alone extending TV support to new cities. To maintain media weights, companies have cut copy length. China is now one of the few markets in the world where the majority of CPG TV media spend is on 15 second ads and not the traditional 30-second. In short, brands are in a Catch-22 situation. Without massive media spend, they cannot grow, and without growth, they cannot fund the media spend. Marketers are thus increasingly looking at activities that can generate ‘earned’ media, or, put simply, create buzz.

Marketers in China are well aware of the massive influence of WOM in their categories. However, most WOM marketing activity in China reflects the old broadcast model mentality, even though it is mainly conducted online.

Brand managers do not want to let go of control. They want consumers to do WOM for their brands, but want them to include the key benefit/big idea in the conversation. They forget that the message a consumer hears is not always the same as the message they share. After all, a consumer narrating in his/her own words how the product enhanced their life or solved a problem is much more compelling and relevant to their friends than a clever tagline and demo. A

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ADMAP OCTOBER 2012

China’s authentic advocates

WORD-OF-MOUTH MARKETING

CHINESE ADVOCATES37

Dettol, one of its global power brands, Reckitt Benckiser China has built a community of over 30,000 mothers over a period of 12 months. These mothers are spreading the word about Dettol offline and online. Over 25,000 authentic consumer reviews, comments and photos now exist online about Dettol, a low involvement antiseptic liquid. This authentic user content optimised for search engines is influencing and converting other consumers 24/7. Besides advocating Dettol within their social circle, these consumers have also helped the brand team create and validate new messaging and product ideas, in half the time and cost of the traditional approach. They are now pretty much like an extended marketing team on Dettol.

More importantly, the high RoI of the Dettol Advocates community has been proven by TNS brand tracking. Over three waves of tracking, the geographies with the advocates community far outperformed other geographies on all brand health indicators. In advocate geographies, recall of Dettol’s key message reached almost 50%, with no TV ads. In the past, to achieve this level of message recall, Dettol had spent 10-12 times more.

SUMMARY

WOM recommendations are a powerful purchase driver, more so in emerging markets with high trust deficit like China. To efficiently and effectively generate such authentic recommendations, brands need to build a community of advocates and engage with them in a sustained and authentic manner. This requires a mindset change and new skills. It is high time we said goodbye to the 1950s model of brand marketing pioneered by P&G, which relies on brand content around a big idea. Community, Collaboration and Conversation need to be the focus from now on. ‘Authentic Advocacy’ that drives growth at a fraction of traditional media cost will be the prized outcome of this new focus.

more on word-of-mouth marketing at www.warc.com

mindset change is required to bring marketing in line with the changed power equations between brands and consumers.

The focus needs to be on conversions not impressions, recommending not spreading, brand utility not brand content, active advocates not passive followers, generating reviews not views, building a sustained community and not doing one-off campaigns.

Every brand has advocates who like the product enough to recommend it. Advocates do not need to be paid to talk about the brands they like, as it is human nature to share your positive experiences with other people. Connecting with these advocates, and engaging with them regularly, to seek their opinion or share value-added information, further cements their bond with the brand. The mere act of a brand reaching out makes them feel valued and respected. They become even more likely to recommend your brand within their social circle. Such authentic advocacy may not be creatively sexy and win awards at Cannes, but it delivers what ultimately counts – more

people buying your brand.The Boston Consulting Group in an article

‘Harnessing the Power of Advocacy Marketing’ said: “Advocacy is a gift that keeps on giving in at least three ways. First, there’s the snowballing effect of recommendations. Whereas advertising can drive consumers down the ‘purchase pathway’ from category interest to brand awareness, brand consideration, and finally brand purchase, word-of-mouth advocacy turns that one-way street into a roundabout, as customers who purchase the product encourage new customers to enter the virtuous circle. In other words, advocates beget advocates and, over time, the cost to acquire new customers plummets.

The good news is that brand advocacy can be unleashed for even mundane and low involvement products. The Fiskateers community created by Brains on Fire for Fiskars, the garden tool brand, is a good example of this.

Even in China, progressive marketers like Reckitt Benckiser are embracing advocate-led marketing and enjoying high RoI. For

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In mature markets In developing markets

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FIGURE 1 INFLUENCE ON PRODUCT CONSIDERATION

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