Issue No. 4: Globalization at Scale
Bloomberg & MEC News 2016 | Issue No. 4: Globalization at Scale
Globalization at Scale
From Brexit to Brazil to Bulbasaur:
What brands need to know this summer
Issue No. 4
The world is a global stage
Advances in technology are creating a seemingly flatter world. With this summer's headlines covering the recent Brexit vote and its aftermath, the 2016 Rio Summer Olympic Games, and the global outbreak of the Pokémon Go gaming app, the world is proving to be more interconnected than ever.
Ensuring brands respond globally and adapt to both the local and global marketplaces is essential to marketing success in 2017 and beyond.
Issue No. 4 of MEC & Bloomberg Media News gathers key news for brands from this summer's highest profile global moments and their implications.
"Anyone who thinks globalization is dead misreads what’s really happening. While there are pockets of resistance, much of the world is still forging tighter links between countries, companies, and communities. Rather than retrenching, globalization is deepening and expanding."
- Bloomberg Businessweek
Illustration: Jeff Glendenning/Bloomberg Businessweek
Read the full story on Bloomberg.com
A wild ride for consumers across the globe
The vote heard round the world
When UK voters opted to leave the European Union on June 23, markets plunged - leading to a summer shock felt by both consumers and companies.
It may take years for the full effects of the vote to become clear, but the near-term effects underscore the need for marketers to think globally.
Flip through this section to find out what's at stake, how Brexit has affected consumer sentiment in the US, and the outlook for global business according to top CEOs.
A quick guide to Brexit's key economic issues
Click to watch Bloomberg Intelligence Economist Dan Hanson break down some of the most contentious issues.
Brexit's impact on consumers
The Dow Jones Industrial Average has reached record highs since the Brexit referendum sent markets into a tailspin, but future uncertainty is keeping consumers wary.
Consumers are also starting to bear the costs of Brexit, with companies raising prices of everything from cars to carpets to counter a plunge in the pound, Bloomberg's Ania Nussbaum and Charlotte Ryan reported in mid-August.
Brexit's impact on business
Meanwhile, euro-area economic confidence unexpectedly improved in July, with an index of business and consumer confidence rising.
But some companies are holding off on hiring and investments, and others are considering headquarters moves. Potential winners from Brexit are cashing in on a weaker pound, now at its lowest since 1985.
"The unintended consequence of Brexit from a WPP point of view is that we will put more emphasis on France, Germany, Italy and Spain."
- WPP CEO Sir Martin Sorrell
Watch Bloomberg Television's interview with Sir Martin Sorrell
2016 Rio Summer Olympics
Reaching consumers in new ways
The year's biggest sporting event drove innovation
In 2012, the London Summer Olympics drew 3.6 billion viewers across more than 200 territories. In the four years since, the media landscape has continued its rapid, dramatic evolution - presenting new opportunities and challenges for marketers at companies large and small.
New technologies, shifting viewership, and creative approaches to leveraging sports for messaging are among the key stories for marketers that emerged from the recently wrapped 2016 Rio Summer Olympics, which drew an estimated 3.7 billion media consumers around the globe.
Flip through this section to find out where the viewers were, how NBC used Snapchat, and how key brands won marketing gold in Rio.
An Olympic first
At the Olympics in Rio de Janeiro this year, NBC broadcasted all events live, either on TV or online, creating an explosion of related-programming equivalent to tuning in 24 hours a day for 250 days.
Prime-time broadcast viewership was down, but the Olympic Games continue to be a huge draw, with 78 million unique users streaming the NBC Sports app and NBCOlympics.com, Bloomberg reported.
In the US, GroupM's Chief Investment Officer Rino Scanzoni put the lower-than-expected TV ratings for the Olympics into perspective, stating: "If you look at the numbers and compare them to the ratings for the average program, the Olympics are far superior."
Snapchat Wins Gold for Mobile First
Snapchat has also covered events like the Oscars and Super Bowl from multiple angles, combining user-submitted content with negotiated access in video stories that can sometimes be watched by more than 30 million people.
Creative strategies enhance impact
Large and small brands made the most of their investments, amid new Olympic marketing rules that were more lenient, allowing non-official sponsors, for the first time ever, to run ad campaigns during the Olympics that use their Olympic athletes.
MEC UK client Visa, a major sponsor, went well beyond building brand equity at a customized venue on Rio's beach. The company also won acclaim for a spot it debuted during the Opening Ceremony that features swimmer Yusra Mardini, a Syrian refugee who made her way to Berlin - and the Rio Olympics.
Visa is also making a striking commitment to Olympians, with hiring initiatives and financial literacy programs for athletes.
Brands have also embraced social media around the Rio Summer Games in creative ways.
While some smaller companies with sponsored athletes have been using hashtags like #TheBigEvent and #RoadtoReeyo to work with USOC rules, Coca-Cola came out on top among major sponsors, according to an analysis from Adweek and Sprinklr.
During the Olympics final week, marketers' mentions for brands including Samsung, Coca-Cola, McDonald's and Visa were up—jumping from nearly 70,800 to around 80,500. And while the US dominated social media activity, the conversations were global - with Brazil, the UK, France, India and Australia key hotspots.
Meanwhile, MEC client United - the official airline of Team USA for the past 35 years - moved 3,000 people and 50,000 pounds of cargo for athletes, support staff and NBC’s Olympic coverage. That unique tie-in, as well as an athlete send-off event from Houston hosted by United Airlines CEO Oscar Munoz, and entertaining TV spots featuring Olympians skillfully navigating an airport-security obstacle course, earned significant media for the brand.
Connecting with global consumers via augmented reality
The gaming app that swept the globe
Released this summer in Australia, the Middle East, Hong Kong, Japan, and the US, gaming app Pokémon Go, featuring creatures like Pikachu and Bulbasaur, had consumers around the globe trying to catch them all via their smartphones.
The game uses an innovative combination of mapping technology - courtesy of Google offshoot Niantic, Inc - and smartphone camera technology to allow users to see Pokémon characters overlaid on their surroundings.
Although plenty of sites now show users how to access the game in a market where it is not officially available, it should be noted that in places like the US, where user numbers initially approached those of Twitter, the craze may already be fading.
Flip through this section to find out how this evolution of augmented reality made waves this summer.
Pokémon Go: Why it's huge and what it means
Click image to watch Bloomberg's Selina Wang report on Pokémon Go
"While consumers don't think in specifics like 'This is an AR game versus a basic mobile game,' anything that helps them engage with AR's ability to add a digital layer of context and experience over the physical world is vital in getting people comfortable with and open to other AR-based experiences."
- Whitney Fishman Zember, MEC Managing Partner, Innovation & Consumer Technology
Read the full article in Adweek
New boost for location-based advertising
From a certain point of view, Pokémon Go has managed a feat that has eluded brick-and-mortar merchants for years: turning location-aware smartphones into drivers of foot traffic. An augmented-reality game such as Pokémon Go, powered by GPS capabilities on every smartphone, has the potential to deliver where beacons failed.
But we may have seen the peak already
New data from Bloomberg via Axiom Capital Management, Google Trends, and Apptopia show a downward trend for active users worldwide. That may also be having an impact on overall interest in augmented reality as well.
Worldwide Daily Active Users
Source: Bloomberg/Axiom Capital Mangement/Apptopia
Google Trends for Augmented Reality & Virtual Reality
Source: Bloomberg/Axiom Capital Management/Google Trends
Approaching Global and Local Marketplaces
Reconsidering brand roles
2017 Outlook: Globalization matters more than ever
GroupM's recently released biannual worldwide media and marketing forecast, This Year, Next Year, reports that total marketing expenditures globally will exceed the $1 trillion threshold for the first time.
That's a compelling measure of just how essential - and competitive - it has become for brands to engage worldwide. Leveraging data and technology is key to building that strategy; so is developing a brand perspective on world-changing events.
As we learned in MEC’s Setting the Trends and have seen played out in the global marketplace this summer, advances in technology are creating a seemingly flatter world and acting as an equalizer—forcing brands to reconsider their role within local and global marketplaces.
Marketers are also adapting or need to adapt to the notion ‘think globally, act locally’ as political decisions, worldwide events and countless innovations require brands to leverage new data and resources to perfect the art of targeting on a global stage.
As consumers continue to grow their global footprint, now is the time to holistically review brand messaging to ensure it all ladders back to your North Star and that all touchpoints offer genuine value to consumers, either via advertising or by actual product/service.
TELL US WHAT YOU THINK:
How should brands respond to global change?
- Project strength through continuity
- Pivot to adapt to new circumstances
- Be flexible but stay authentic
The most important tech for global marketers is:
- Location-based technology
- Augmented reality / virtual reality
- Data collection and analysis
- Conversational commerce technology (e.g. chatbots)