It’s nice to see how each major new development on the internet adds something new to the distribution of content. This started with weblogs: RSS made it possible to share text, image and sound with everyone who had subscribed to automatically receive new information from a blog.

One of the most important drivers of the success of YouTube was the invention of the embedded code. By cutting and pasting a small piece of HTML code, users were now able to post any video available on YouTube on their own weblog or website. Subsequently Hyves introduced API in the Netherlands. A simple technical solution that allowed advertisers to use this social network’s database without having direct access to the users’ personal data. This was also a new way to personalize gadgets with content and have them installed on an endless amount of profiles in this virtual hangout.

Twitter also helped develop a new way of distributing content. It was on this platform that the concept of ‘retweeting’ originated. By retweeting, you forward something of interest to your followers. Who in turn may send it on to their followers. In this manner information spreads in a domino-like effect within Twitter and over the internet.

All of these developments present interesting opportunities for marketers. You see, if you are able to have your campaign or rumor around your brand spread via consumers who use these new possibilities, you will need less paid media to bring your product or brand to your audience’s attention.

Jeroen de Bakker

This past week two pieces of evidence became apparent that could help argue the importance of brand investments in times of recession:

The first is the golden Effie case 2011: Robijn. The Robijn case started off six-and-a-half years ago with the ambition to become the number one detergent (by knocking Ariel off its throne). At that time Robijn was seen as a detergent for delicates, too specialized for regular laundry. The aim was to move away from this niche and gain ground in the whole laundry detergent field. Robijn has remained fully consistent in its chosen course, even during the recession of 2008 when – under the added pressure of a pricing war – competitors opted for extra offers and introductions on the shop floor and lowered their share-of-voice. The result: Robijn is now the most loved brand for colors.

The second piece of evidence is provided by research that was published in the Journal of Advertising last summer. It concerns a longitudinal study into the proceeds of communications expenditure in times of recession. The data go back to 1971 and cover a total of five periods of recession. The article explains what we probably already know: that advertising is an investment in a successful future. Especially during a recession the connection between increased investment and future returns appears to be stronger and more direct than extra investments made in normal economical times. This also argues in favor of consistently developing your brand instead of going along with the market under changing circumstances.

Mary Hoogerbrugge

These days, it is not only expected of advertisers and agencies that they develop integrated advertising campaigns using all existing and new opportunities. They are also expected to ensure buzz and conversations. And to work on distinctive, relevant services that make their brands tangible and give them a permanent place in the media consumption of the target group.

After all, in the rapidly changing media landscape, paid media aren’t the only media we have access to. We can also explore paths in earned and owned media. Employing these provides the ability to make full use of the power of social media and to work on valuable and lasting brand relationships with consumers. But that does require – now more than ever – that choices are made.

As complexity increases, logically, the role of strategy becomes more important than ever. Finding all-round thinkers who understand positioning, brand development, marketing- and communication strategy and the operation of specific media is an almost impossible task. Hence this will probably only succeed by putting together a team with complementary talents; prepared to work together and make informed decisions based on clear objectives and arguments.

Apart from this, two other issues have become even more vital than before. As far as I’m concerned, these are casting and directing. Of course, there are still parties who promise full service, but this is no longer possible to deliver. This means that based on the formulated strategy and planned activities as set out by the advertiser, different parties should be selected, almost per project,  to deliver the best possible work.

All this can only be achieved with even tighter directing. Strategic direction and creative supervision are necessary in order to exploit all of today’s possibilities in an efficient and effective way. After 15 years of internet, more and more advertisers are experiencing the complexity of the current media landscape and the need for brand direction is becoming more explicit. The really interesting work is only just beginning.

Jeroen de Bakker

I recently heard about Philips DirectLife, a motion capture box that records daily movements. You upload the activity data to your computer, thus creating an overview that gives you insight into your activity level during the day. Bringing the children to school, driving, giving a presentation. Regular contact with an actual Philips coach encourages you to improve your daily activity level. But the real value of course lies in sharing your activity level with peers in an online environment. Social control and the mutual competition that this entails, is exactly what you need to keep on track and stay physically active.

The Wake-up Light is the first Philips product I have bought since the Senseo years ago. While all that time, Philips has been investing a lot of communication funds to highlight its “sense and simplicity”  brand promise. Philips now understands that you need much talked about products and communication to build a brand in the digital age.

Mary Hoogerbrugge

A possible explanation could be that current brand owners and their consultants were schooled in the Aida model. And that due to the increase in number of media and stimuli, gaining coverage has become the aim, instead of a precondition. Internet is then used because of its broad reach and not its possibilities for interaction.

On the other hand, we have to admit that the digital world hasn’t exactly embraced brand thinking and views it more as an invention of the last century. The brand represents mass production and has become so prominent by making promises and using a scattergun approach on large audiences. In their own view, thanks to the completeness and accessibility of information, people nowadays can no longer be fooled. The rational person can now make even better informed decisions than before. This has permanently dismantled the emotional make-believe world of brands.

A world that doesn’t tap into the power of a strong brand as a mark of quality and source of attraction and trust. Nike+ is one of the examples that has done so and shows what is achievable when the possibilities of the digital era brand àre brand strategically exploited. With Nike+, Nike has created a context in which the brand and its audience come together from a shared passion for running. Runners exchange information, share experiences and products are purchased. The number of users has risen to millions worldwide. Brands need to stop shouting and interrupting, but should instead create a network of people around a shared interest.

Paul Kemp-Robertson from Contagious claims the same. He adds that targeted messages that are either relevant to the context, useful, or just plain fun, are not perceived as advertising, but are valued as ‘a message from a friend’. Now isn’t that exactly what every brand owner dreams of?

Mary Hoogerbrugge

The winning cases serve as inspiration and as proof of the power of communication. Despite the fact that no one seems to doubt this power, the overall market (worldwide) has more than halved since 2008. We have recently again experienced how dependent marketing budgets are of the economy. In times of recession, communication tops the list of cuts.

We all know the arguments in favour of continuing to communicate: countercyclical advertising provides an advantage when the economy recovers. Communication efforts can stimulate additional sales, especially now. Apparently, these arguments have insufficient impact in the boardrooms of big advertisers. Scientific research recently gave incontrovertible evidence that marketing efforts not only affect consumer behaviour, but also affect the market value of a company.

This is good news. Such a claim should also do well with the CEO and CFO. The results show that communication campaigns have both an indirect effect on the market value of a company – through the positive effects of a campaign on turnover and profit – and a direct effect – through the financial analysts. There is one drawback though: these effects are not apparent in the short run, but can only be observed in the long run.

To really benefit from the power of communication a long haul is required. That is perhaps the biggest challenge. Hopefully the prospect of a nice stock value will inspire brand owners to make the necessary investments in effective campaigns, but especially to not only aim for the short term.

Mary Hoogerbrugge

Sander van Meurs’ thesis about the role of brand utilities on building strong and sustainable brands.

From February till June Sander van Meurs followed an internship at Lab1111 and wrote a thesis about the role of brand utilities on building strong and sustainable brands. Because we believe in long-term relationships between brands and consumers, we thought it could be an interesting thesis for Sander and us as well. He wrote his thesis with great dedication and we would like to share the summary with you fellows. It’s partially based on the Brandprogramming communication models, supplemented with theory and insights from interviews with experts and brand owners like Philips, Heineken, Vodafone, and UPC.

As a strategic instrument brand utilities can contribute to improve the consumers brand preference, brand perception, loyalty and conversion. Thanks to an owned media platform the reach of the brand utility grows organic and can be boosted by paid and earned media. A higher use frequency of the brand utility showed in research substantial positive effects on all mentioned brand effects. Want to know more?

Download the summery of the thesis here and share your reactions.

A second strategy is ‘pain’. If only an injection costing € 10,000, – can save your life, you bet you’ll buy it. And finally, Godin names ’scarcity’. You want something because you are afraid that otherwise it will be gone or because for once you will have something others don’t. For example, the limited edition collections by famous designers such as Viktor & Rolf, which H & M occasionally developed in small quantities, resulting in a run on the stores.

Which approach do you take? In any case, you must take the scarcity of consumer attention into account. And this is bad news for advertisers, who, regardless of Godin’s necessary strategies, live by the grace of the visibility of their brands. Because visibility creates top-of-mind awareness, which often leads to brand preference, purchase intent, and desired consumer behaviour.

With an increasing number of means of communication in more and more places, the competition for attention is becoming more fierce. And consumers are better at multitasking, making undivided attention the exception rather than the rule. I recently read that only three in every hundred messages are consciously observed.

This means it’s time for a strategy based on relevance for the consumer, a strategy that leads to being easily found when and where potential buyers search, and that ensures 24/7 presence within contexts and (social) networks that meet the interests of consumers. Audience understanding is essential for this and goes beyond the familiar consumer insights. The strong brands of tomorrow are the brands that not only regularly draw attention to themselves, but more so, receive a lot of attention from the consumer. Because they deserve it.

Jeroen de Bakker