Criterion Global: The Blog


Mobile Media Usage: Texting speaks louder than words

A recent ComScore Mobile webinar, called Wired: Connecting to the Mobile Marketing Revolution, reviewed data that show mobile phones are no longer used simply for their voice capabilities, even though less than half (49%) of mobile devices are compatible with mobile media platforms (only 12% of which are classified as smart phones, such as iPhones and BlackBerrys). Overall,

  • Talk time accounts for 1/3 of cell phones usage
  • Text messaging (or SMS) and mobile media account for 2/3 of mobile activity.

For several years now, advertisers have predicted the coming revolution of mobile advertising without actually seeing much of a change. This was partially attributable to technology and bandwidth capacity, which has only recently been able to support complex media. This evolution toward increased multimedia activity in mobile use evidenced by the comScore data will only increase as both phones and service plans decrease in price and become accessible to an even wider audience.

Marketers, who were outpaced by the improvement of mobile technology, now foresee the many benefits of mobile marketing: primarily the ability to target the desired audience through both user history and geographic location. Marketers must quickly learn how to reach to the growing mobile audience, and capitalize on these new patterns in usage. Navigating privacy issues will be an obvious concern, as it was at the advent of behavioural marketing online, but this does little to dampen marketers’ hopes for this new marketing medium.

For more information on media buying on mobile platforms, contact Criterion Global international media buying.



BRIC Travel Marketing: Business-Class vs. Budget Air Travel in China and Beyond

- R.D. Eisenhart III, reisenhart@criterionglobal.com

Domestic air travel in China, once subject to tight government regulation and closed to foreign operators, is quickly entering a new era of greater competition for marketshare in both business-class and budget travel segments. Meeting the demands of these business-class and discount consumers presents challenges for both domestic and foreign air carriers, both established and new to the Chinese market.

International airlines are increasingly adapting to accommodate the cultural preferences of the Chinese business-class air travel consumer. Those who can do so effectively will be well-rewarded. For many business travellers in China, quality of service is the only factor determining whether that customer returns or not, and despite the economic downturn, experts note that Chinese business travel continues to remain strong. Still, this elite business-class community represents only a small portion of country’s total population capable of flying.

Although China’s middle class have yet to move towards international travel en masse, it seems only a matter of time before they do. Domestic airlines in China are expected to increase passenger travel by 10 million, for a total of 170 million passengers, in 2009, the majority of which shop by price alone, regardless of brand preference or quality of service. Discount airlines, such as Spring Air, are meeting this demand, and have even considered offering customers “standing room only” tickets at a 20% discount to meet demands according to Sky News. Despite the shock value of this prospect, Spring and other private air carriers continue to perform well next to state-backed airlines, known for exceptionally high ticket prices combined with “notoriously low levels of service and efficiency.” (more…)



BRIC Marketing: Multinational Brands Target Indian Consumers (Part III of III)

This is the third article in a 3-part series on the growing phenomenon of baseball in India, as an introduction to BRIC media consumption habits, and media’s influence on consumer preferences in India. By Dah-un Hau of Criterion Global (dhau@criterionglobal.com).

Baseball, of course, is just one example of Western culture being marketed to Indian consumers. Multinational brands see India as a prime market, given its 1.1B population, rising middle class, and near-exponential economic growth:  since the economic reforms of 1991, India’s GDP has grown dramatically by about 8 percent annually.

India has an emerging consumer culture, and its consumers have been deemed “Global Multipliers”. Global Multipliers consume more goods than the average global consumer, keep updated on the latest trends, and are known to influence the behavior of other consumers. Global Multipliers make an average of 16 recommendations to nine people per week, while average consumers make only 10 recommendations to six people.  In India, social media is one of the top sources of information, and a platform which allows the spread of brand recommendations.

Along with TV, social media is another medium prime for brands to leverage in marketing to the Indian consumer. A 2009 study by MTV Networks International shows that 87% of youth in India research purchases before they buy, and website reviews are the fourth most important factor for movie decisions (behind friends, TV and cinema ads).

Perhaps the most appealing characteristic of the Indian market is its remarkable receptiveness to new brands. Consumers in India, like other BRIC nations, value being the first to try something new (72% versus 43% of consumers in established economies), and are more likely to enjoy trying new products even if they are unfamiliar with the brand (81% vs. 58%).

To conclude this 3-part series, bringing baseball to India may be an uphill battle for MLB and its advocates, but given the population, economic power, and receptiveness of this market, MLB will reap great rewards if, in fact, the sport does catch on.

As for other multinational consumer brands, time and a careful understanding of media consumption habits in India can ease a brand’s transition into this ripe market, and also bring great rewards for those who are successful. For more information on international media buying, or consumer trends in BRIC markets, contact Criterion Global today.



BRIC Marketing: MLB Marketing to brand loyal Indian youth (Part II of III)

This is the second article in a 3-part series on the growing phenomenon of baseball in India, as an introduction to BRIC media consumption habits, and media’s influence on consumer preferences in India. By Dah-un Hau of Criterion Global (dhau@criterionglobal.com).

It’s the World Series.  Bottom of the ninth with the score tied. Bases loaded with two outs and a full count. An extra two million people might be turned-in to watch Danesh Patel and Rinku Singh throw the last and final pitch. These local heroes from Uttar Pradesh, in Northern India could potentially attract millions of additional viewers to this traditionally American sport.

The question for MLB is how to increase awareness in a country that knows so little about baseball – and one so loyal to cricket for that matter?

Baseball India_OpenYourGloveBaseball was first brought to India by the Amateur Baseball Federation of India in the 1980’s, and the game’s popularity is growing slowly but surely. Indeed, proponents of the sport in India are shocked by the number of players with experience at the University level. But baseball has the potential to gain a greater following. Supporters expect more promotions on the scale of the “Million Dollar Arms” TV show, along with TV, cinema, and radio ad campaigns to boost the sport’s visibility.

With a growing middle class tuning in, TV seems like the most broadly effective media buying channel for this purpose: Roughly half of all Indian households own a television, which is exceptional for a nation in which 77% of the population lives on less than Rs.20 (US$0.50) per day. Additionally, cable television is growing at a rate of 8-10% per year, according to Wikipedia.  Of course, India is geographically large, and demographically nuanced by generational, class, and regional preferences, and while mobile advertising is soon expected to take off,  India is a market particularly responsive to TV. A 2009 MTV Networks International study on youth consumers worldwide showed a vast majority of young people in India have a favorite channel (88% in India compared with 70% in Germany, 73% in the UK, and 80% in the US).

More importantly for advertisers seeking adoption by Indian consumers, young people in India are deeply brand conscious. In this same survey, Indian youth were found the most likely to talk about brands, with two in three saying they do so ‘a lot’. Perhaps an even more staggering finding: the study also found that Indian youth associate brands as trends and as “a way of belonging,” with 25% of respondents agreeing.

In all likelihood, television would be considered the best way to increase awareness. Targeting younger people, specifically in sports marketing, builds long term loyalty, and is ideal since baseball is meant for younger people to learn and love the game as they are growing up.

Baseball’s adoption in India would amplify interest in the game on a global scale, and after all, an extra million or two viewers cheering for Danesh Patel and Rinku Singh in the World Series  wouldn’t be a bad thing for MLB’s franchise.



BRIC Marketing: Seeking 1.1B Potential Fans, MLB goes to India (Part I of III)

This is the first article in a 3-part series on the growing phenomenon of baseball in India, as an introduction to BRIC media consumption habits, and media’s influence on consumer preferences in India. By Dah-un Hau of Criterion Global (dhau@criterionglobal.com).

rinku-singh-and-dinesh-pate

Photo via SportsIllustrated.CNN.com

In 2008, a sports management company in California created a reality TV show in India called “Million Dollar Arms.”  The contest was simple:  Throw as hard and as accurate as you can to win.  Using print ads and TV broadcasting to get the word out, over 30,000 contestants came and tried out.

In the end, two contestants came out on top: Dinesh Patel and Rinku Singh (the eventual contest winner).  The two were given the chance to go to America and train to play baseball, be courted by major league scouts for the chance to sign with a Major League team.  They spent months learning how to pitch, and with the final days looming, were finally signed to a minor league contract by the Pittsburgh Pirates.

With their great success so far, both Rinku Singh and Danesh Patel have the chance do what no other Indian person has done before: pitch at the Major League level. As for MLB, they are following in the footsteps of countless multinational corporations in recognizing India’s potential.

With a population of 1B+, it’s a great recruitment market, but perhaps MLB’s move seeks to influence the country’s cultural preferences toward sports as well to further its expansive licensing franchise.

In the next article, we will discuss baseball’s growing following in India, and how smart media strategy can amplify the presence of MLB and other potentially multinational brands in this emerging market.



Lessons in Media Ecology: Strategies + Eulogies for Big Media

President Barack Obama channeled the finest orators of the Roman Forum and Chicago Machine in selecting his one-word, monosyllabic 2008 campaign tagline: Change.

Everything changes: hairstyles, economic superpowers, and like everything else, how we get our information. As a media planning and buying agency, our job is to help our clients reach the right audiences, at the right time. Even if YouTube is filled with videos of obnoxious teenagers with acne, its damn good media if you’re Clearasil.

From a business standpoint, media’s job is to produce content to can engage a specific audience. As in the prior example, it doesn’t even have to be good content. Good media can be broad in scope, such as YouTube, or CNN.com. Good media can also be extremely narrow, such as a closed distribution academic journal sent only to dentists, for example, or a Google Search for that matter. Good media engages audiences so advertisers can market their brand.

So what’s happening? Now it seems good content isn’t necessarily good media, audiences are unengaged, more data seems to hurt publishers who previously controlled demographic data, and costs are anything but standardized.

Reacting to some of these symptoms, some publishers are sharply narrowing, or deliberately focusing their content in rection to the effects of the commoditization of space and audience fragmentation. This hyperlocal movement, as some are calling it, is a counterpoint to the local papers that have bitten the dust in recent times.

The media landscape is constantly changing, and with talk of government subsidy and bailouts for media, many talk of letting media fail to make room for more efficient newsreporting business models. One of the wisest, dare we say beautiful thoughts on the topic comes from a recent NYTimes article (ironic). We leave you with this:

“As these lumbering oak trees fall, a thousand flowers will bloom, using the power of the Internet, network effects and citizen journalism to create a new apparatus of accountability.”



Mass Marketing is Passé: Segmentation Evolved

by Dah-un Hau, dhau@criterionglobal.com

As the lines continually blur between consumer and brand contributor, marketing has become increasingly bi-directional, and conversational, with brands drawing marketing and product development insights from consumers. But how narrowly can we segment, or adapt brands to suit individuals, while optimizing sales overall?

A new study from Ipsos Mendellsohn entitled, “Designing Actionable Segmentation,” analyses segmentation as it “identifies and profiles promising target markets so you can reach them efficiently and effectively.”  Segmentation narrows your marketing targets to optimize sales within specific market segments, and evolved from the demographic targeting used in the 1960’s (e.g., women with high income, males between the ages of 20-25, etc.), which later evolved into psychographic segmentation, and later the behavior-based nano-targeting of today.

Segmentation, which separates consumers into broad categories by various criteria, is slowly becoming enmeshed in the marketing world to cater to individual consumer’s needs and build long-term loyalty. In his white paper “The Collective is the Focus Group,” David Armano believes that listening, learning, and analyzing your consumers and other “niche” markets can strengthen your brand. (more…)



Tolerate Ads or Pay for Content? UK Users Speak Out

A survey by KPMG in the UK finds that 60% of those polled said they would rather watch advertising onlinroyal_queene in return for free content than pay for it. This is another blow for services expecting users to pay for content, but positive news for advertisers and the publishers who love them!

Only 16% of consumers said they would rather pay for content and avoid ads. The survey’s results proved true for internet, as well as mobile platforms, with regard to video, article, music, or other content provided free with advertisers’ support.



Repurposing Retail: Apparel brand sees versatility of spandex!

2009_04_aamaternity.jpgIn consumer media, the current recession has taken a grin-and-bear it tone with Holly Hobby headlines offering “tips”  on bargain-hunting and doing more with less. Echoing this consumer charge, it seems as though American Apparel examined its own product line with an eye toward repurposing its merchandise for new prospective consumers: the expecting.

As remarked on retail blog RackedLA, and women’s blog Jezebel, American Apparel’s foray into materity isn’t actually a new line of products, just a reassemblage of spandex and stretchy garments, well, stretched onto a new silhouette.

For marketers, re-purposing products can be a genius move. Anectdotal research has found at least 30% of Preparation H sales are for its affect on undereye bags, an unintentional but effective secondary purpose. The benefit of secondary segment marketing is that it broadens the audience of prospective consumers, ideally without alienating the original consumer base.

American Apparel’s move cleverly continues the unpredictable tone of its marketing (which recently stirred up the neurotic ire of Woody Allen for an unauthorized, insulting use of the director’s likeness for billboard spots; Allen has launched a lawsuit over the imbroglio). As for its real prospect for penetrating the maternity market, spandex jumpsuits aren’t terribly practical for mums-to-be, but American Apparel can be lauded for adding some edge and pinache into a rather dismal corner of the fashion market.

Thinking of repurposing your retail brand to fit a new audience? Call Criterion Global for media strategy and guidance – even in a downturn, bright ideas and sound execution can breath life into your brand.



Chinese Affluent: A Rapidly Growing Consumer Base

According to global management consultant McKinsey & Co., China is home to 1.6M affluent consumers, a figure that is growing at a rate of 16% annually. Although this currently accounts for less than 1% of urban households in mainland China, China will have over 4M affluent households by 2015.

Does your BRIC media buying strategy include feasible marketing strategies to reach this affluent Chinese consumer? Call Criterion Global, or visit our website for more information.