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It has been an exciting few months for us at Weber Shandwick. Announcing new business ventures in London, Africa and Latin America, and winning prestigious global and regional awards for public relations excellence and digital creativity. Against a difficult economic background, our firm and our industry continues to evolve and innovate. I hope you enjoy this latest collection of insights from our senior leaders around the globe.
Gone are the days when organisations could simply handle their PR from abroad in London or Paris the models are different on the ground and local expertise is required to get messaging right and reach target audiences.
A recent study shows that 62% of internet access in Africa takes place via a mobile device. Technology is enabling more people to get internet connectivity via their mobile phones and as GSM networks penetrate places where no other connectivity is available, mobile internet users in Africa are increasingly making it the most effective web platform to reach the African market. Without a doubt the communications industry is growing across the continent as major multinationals are realising the important role public relations companies play in helping them achieve their targets. Gone are the days when organisations could simply handle their PR from abroad in London or Paris the models are different on the ground and local expertise is required to get messaging right and reach target audiences. Francophone Africa possesses vast potential until recently it has been somewhat overlooked and companies have worked more in the traditional markets of South Africa, Kenya and Nigeria. It is a more difficult region to carry out PR plans and strategies and on the ground presence and local knowledge are vital. Approximately one-third of Africas one billion people live in Francophone Africa. The Organisation Internationale de la Francophonie (OIF) estimates nearly half of the 200 million French-speakers in the world live in Africa, currently 96.2 million. In this region, French is often the only language spoken and written in schools, administrations, radio, television and the internet. State-controlled broadcasters and newspapers still dominate public discourse. Information access issues prevent media from reaching all but a few of the urban elites. Overall, only 10 per cent of Africa has internet access. Online news sites and blogs are in their infancy due to poor communications infrastructure, high prices for use, language barriers, and even frequent power outages. Overall Africas media markets are in the midst of dynamic change and the opportunity for the communications industry is immense. The key trends to keep top of mind are: Press freedom, professionalism, and accountability are growing in a number of countries. Print media is prominent and developed in rapidly expanding urban centres. Broadcast radio is a dominant, widespread news source for urban and rural communities and TV channels are increasing. Internet access worldwide is 1:5; in Africa it is 1:20. Internet use, however, in targeted countries is rapidly expanding. In Nigeria, for example, between 2000-2010 it grew by nearly 22,000 per cent. (Click here for source)
One example: The number of Facebook users in Tanzania quadrupled in 2010, to 200,000. It is expected to quadruple again this year, giving Tanzania more Facebook users than high school graduates. Due to this phenomenon most companies looking to reach the vast amount of consumers in the most cost effective way are turning to some sort of mobile/social media outreach. More than 15 per cent of people online in Africa are currently using Facebook, compared to 11 per cent in Asia. (Click here for source) Twitter and YouTube additionally rank among the most visited websites in most African countries. Usage of Google is surging; with a 50 per cent annual growth in search requests (four of every 10 requests come from mobile phones). The BBC has also reported that African governments are turning to sophisticated techniques to block internet sites and bloggers who they perceive to be a threat, including JamiiForums, a Swahili language version of Wikileaks.
More integration of social responsibility across business, marketing and product activity will help brands counter consumer cynicism that is unlikely to abate.
Secondly, brands can no longer be ethical voids, primarily concerned with selling products that satisfy basic needs. They must be more socially responsible. And by this, I dont mean they should have a CSR programme or plant some trees. I mean that everything they do should be underpinned not just by the commercial imperative, but also by a genuine (not box-ticking) ethical or social one. In this anarconomy of ours, consumers and citizens will see right through any superficiality. More than ever before they know how the media works, how marketing works and how the government works. They are more informed, more intelligent and they will increasingly look for brands that display similar values to their own and kick the tyres of those they suspect do not. More integration of social responsibility across business, marketing and product activity will help brands counter a consumer cynicism that is unlikely to abate. Finally, brands need to become more Brandtocratic more prepared not just to have conversations with consumers but to co-create, co-operate and collaborate. As Klaus Mogensen of the Copenhagen Institute for Futures Studies says: In the anarconomy there is no state authority, but things are still getting done were going back to the Age of Enlightenment and the Renaissance. The Renaissance was all about great minds and great talent working together to do great things. Now that businesses have the technology to collaborate on a previously impossible level with their consumers and fans across the world, there is an unmissable opportunity to not just crowd-source more widespread input on existing and future plans but also to develop business, product and marketing ideas that rapidly grow consumer advocacy and hence drive business growth. Businesses with a beta mindset who are prepared to let people into their brands (within reason) will be better placed to reap the rewards of the new era. So whilst the anarconomy may feel like a scary place to live, the opportunities are endless. Whilst Mick Jagger was not thinking of brands when he said anarchy is the only slight glimmer of hope, there is no doubt that it does offer much hope for those brands able to adapt, be guided by ethics and co-create.
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Here are a few truths about the most distinguishing characteristics of world class social brands relative to the average global companies: 1. Companies are concentrating too hard on the medium and not enough on the substance of the brand story, identity and message. World class brands dont depend on the medium to make them social. They strive to provide unique and engaging content that pull their fans in. As one C-level executive said, Nothing turns off visitors more than old content. 2. Weber Shandwick/Forbes Insights research found that world class social brands are pioneers they lead their industry in the use of emerging social media tactics. Interestingly, these pioneers are so rapidly refining their toolbox that nearly half of them (48%) have already closed a corporate blog. World class brands realise that it is essential to test tactics and iterate or eliminate as necessary. Failing better is a key to success. The current focus of world class brands, by a 2-to-1 margin over the average global brand, is on mobile.
Executives managing world class social brands consider a companys global reach to be just as important as customer service, while the average global executive ranks it last. As an executive said, Our social branding goals involve a very firm commitment to increase the recognition of the companys globalisation. Despite the rapid integration of social media into marketing plans, only a handful of global organisations are mastering its potential for brand-building. Never before have marketers been presented with the vast and meaningful audience engagement opportunities that social media offers. Yes, they have adopted the tools and they know that the rewards are plentiful. Yet, tapping into the opportunities takes careful consideration, enterprise-wide commitment and ample resource allocation. A Brands Guide to Sociability provides brand managers with a starting point for developing their own world class practices for creating an authentically social brand.
Leslie Gaines-Ross will be joining James Warren, Chief Creative Officer, Digital and Chris Perry, President, Digital Communications to present this report at a series of seminars next month focused on building social brands. If you would like to join us at any of the following locations or simply receive a copy of the report, please contact Emma Bowen-Davies at ebowen-davies@webershandwick.com Paris Cologne The Hague Brussels Geneva Madrid Milan London November 1 November 2 November 3 November 4 November 7 November 8 November 9-10 November 11
Creative, strategic and technical become our gateways to bringing bigger, better and more transformative ideas to our clients.
We also decided to be purposefully bold. Public relations agencies have often struggled with evolution as too often they play at the edges. Weber Shandwick, Europes most award-winning agency, is not one of them. We have built a team that dramatically scales our ability to not just produce groundbreaking ideas but provides the ability to create every component of them required. Creations coders & mobile developers, set designers & event producers, cameramen & editors, graphic designers & animators give us the ability to produce the content, platforms and brand experiences our clients audiences crave. Embedded within our creative teams we therefore have an unparalleled ability to conceive, produce, activate and measure all components behind our Big ideas, all from the comfort of our own sofa. More efficient and effective for the client, with greater quality control around the idea. When our world first saw Creation they said two things. The progressives said it was genius. One of the Worlds biggest agencies broadening itself rapidly, believing in a future defined by ideas and intellectual capital, building an agency capable of delivering rich, transformative experience-based campaigns. The laggards said it had been tried before, that production was both specialist and commoditised, that it wouldnt work. Well, were 143 days old now and the bold new world of Creation is already bigger than wed anticipated. Weve built a Big pipeline and been briefed on millions of pounds worth of work, weve produced Big creative ideas and mashed together technologies, creating applications for our clients that have never before been seen, we've provided solutions for almost all of our Big clients already and received Big testimonials about Creation's transformative effect. Most importantly we've already put in place a Big expansion plan that will see us grow from two-dozen production people in London to over a hundred, across four European offices within six months. Now you tell me that might not be Magic in the Making
In view of the current challenges affecting Europe and North America, Latin America offers unparalleled growth opportunities and communications can play a key role in establishing a differentiated advantage.
Decade of Opportunities? Only for Those Who Understand the Rules The influence and impact of public relations and international communications as a powerful marketing discipline in Latin America is just beginning to make its mark in building corporate brands and reaching out to stakeholders. There are some critical Dos and Donts that marketers entering the Latin American region must master to create a path to success. These defining truisms should be considered in the strategic planning process. For example: It is important to create a tailor-made offering for the region not just adopt U.S. or global programmes. But never assume that Latin America is a monolith. Each country has to be analysed and approached individually. Executives cannot ignore the importance of building strong relationships with leaders in the political, business, economic and professional arenas in each country. It is essential to evaluate, understand and address the specific needs of each constituency on a country-by-country basis. Last but not least, executives must also speak the language, as well as learn the customs, culture, norms and taboos and even the relevant trade legislation. Following these principles will enable companies to shape a strategic message that makes possible for the entering organisation to assume a leadership position in the region. The Other Side of the Equation: Establishing a Global Foothold Based on the common experience of emerging market companies that have made a mark for themselves globally, there are five absolute truths about how companies from developing markets, like Latin America, must approach communications in the wider, global environment. They are critical for both the public and private sector. They must: Focus, taking time to think about which markets outside the home market represent the most powerful communications opportunities and risks. Learn how to talk about themselves to make the international community aware of the significance of global companies from developing markets. Understand the specific needs and touch points of local markets and appropriate ways to deal with audiences in different markets but remain consistent with themes and messages. Overall, the regions growing importance is driving more multinational companies to focus on strategic planning to enter Latin America and at the same time, Latin American companies to market outward. Successful brand building for organisations and their products within and outside of Latin America requires an in-depth knowledge of the area and a healthy respect for its culture.
In September Weber Shandwick acquired majority control of S2Publicom, ranked among the top five public relations firms in Brazil. The operation will represent an important part of Weber Shandwick growth plans in the region. For more details, please visit here.
Between the Arab Spring and the Downgrade in the U.S. Debt Rating. A Dubai Perspective.
In a sprawling middle-income housing neighbourhood in Dubai, its leading real estate agent is feeling bullish. Four hundred families are moving into this area every month. I think the media should know about it. Why dont you set up an interview for me? I will tell them how Dubai is back. He embodies a trader spirit that has regained its confidence, oblivious to news of the U.S. debt rating downgrade and the jitters felt by a globalised executive.
The four pillars of Dubais economy trading, tourism, property and retail have stabilised or are growing again. Its ports have seen traffic rise 14 per cent on last year, bank deposits have climbed to their highest level in more than two years, close to 100 property projects are back on track and its economy is projected to expand by 3.5 per cent this year. The Arab Spring has also brought benefits to its tourism industry, with Dubai hotel occupancy rates touching 82 per cent in the first six months of 2011. Even index provider MSCI has considered reclassifying the United Arab Emirates from frontier to emerging market. With construction costs down 40 per cent on 2008, interest rates low, banks beginning to offer mortgages again after a two-year freeze and population rising due to political unrest from Casablanca to New Delhi, many here believe that the scene is set for another Dubai boom. IPSOS estimates that advertising expenditures in the Middle East increased by 12.2 per cent from January to April 2011. With the communications role of social media in the Arab Spring openly acknowledged, clients are waking up to this critical channel and social media expenditures are expected to grow by 50 per cent this year. As the Holy Month of Ramadan ended, marketing executives predicted a stable Q3 and Q4. Hiring has begun again, marketing budgets are increasing and categories from detergents to luxury cars are reporting rising sales, hence expectations of stability. But how much do Dubai and the wider Middle East economies expect to really suffer due to the U.S. debt downgrade? It is true that the ultra-wealthy in the Middle East, who have parked their money in various financial instruments around the world, are hurting by the US$2.5 trillion that was wiped off global capital markets in the first week of the downgrade. It is also true that economists are busy painting doomsday scenarios, warning of excessive exposure to certain sectors. And the Middle East IPO and M&A markets are running at historic lows as investor confidence is now amoebic rather than amorphous. The latest economic woes over in the United States and Europe seem, so far anyway, to have bypassed the communications industry here in the Middle East. The Arab Spring has seen a re-routing of business and tourism to Dubai from other Arab countries affected by political unrest. The slowdown of trade and traffic from the West has been compensated for by growth in traffic flowing in from the tiger economies of the East China, India and Korea, and Japan. In our Dubai business, which is at the heart of our operation in the Arab world, we are witnessing a kind of stability that gives us confidence that global economic turbulence will have limited impact here. We feel that the follow-on effects of the U.S.-EU recession will be short lived at best because of three fundamental reasons. First, we have a stable economy, less intertwined with the global economy than previously as the Dubai debt overhang has reduced our links to the West. Our established infrastructure is a magnet for global and expanding organisations from the developing world trying to get a foothold in the Middle East and Africa region. This will bring in continued communications investment in future. Secondly, local companies who only previously knew the boom-times and who subsequently were hit hard by the financial crisis of 2008 have cleaned up their acts and are now ready to invest in communications to help grow market share. We believe that major chunks of new business will increasingly come from these entities in addition to new local brands coming on-line. Lastly, we have worked hard to raise our quality of delivery to compare to the best in the world, as borne out by our success with various international industry awards. Business that was earlier sent to other markets will remain within the region. So while the real estate agent brims again with confidence and dreams of bonus windfalls, economic events of the last few years have taught us perhaps to take a more cautious outlook. As a city founded on opportunistic passing trade between Europe and India, however, Dubai is famous for its bullish he who dares, wins mindset. The world may have changed around us all but, in the eyes of many here, Dubai is back.
We are now at the business end of London 2012. But, for me question marks still remain over whether sponsors have done enough, or are doing enough, to capture consumers and the medias attention.
To my mind, partners need to be doing more. They need to be doing it with a greater sense of belief, excitement and purpose, and they should be pushing boundaries. To date, it seems like Olympic partners are box ticking: generic ambassador tick; use of London 2012 logo tick; tell us an Olympic-related story and you can win a ticket tick; employee programme to motivate and mobilise a workforce using the Olympics tick. Its not very exciting, is it? What would be, is a brand breaking ranks to deliver a truly engaging and creative piece of communication that takes its inspiration from the extraordinary thing that is the Olympic and Paralympic Games. All eyes are on London, arguably one of the most creative cities in the world. All eyes are on the communications specialists, brand marketers and marketing directors who have this remarkable asset for one time only. The Olympic Games are a celebration of the best-of-the-best, be it sporting excellence or culture. My plea to sponsors is this go on, do something out of the ordinary, create Ideas That Grow, ideas that have a life beyond the original conception and can be shared and travel through all channels and live beyond the Games. In short, do something Olympic.
Originally published September 2011 in PRWeek
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Weber Shandwick is a leading global public relations agency with offices in 74 markets around the world. With a deep commitment to client service, creativity and collaboration, we harness the power of Advocates engaging stakeholders in new and creative ways to build brands and reputation. www.webershandwick.com