perhaps its because I'm a digital immigrant (first email send 1995 aged 18) but I'm still sometimes genuinely surprised and more than a little delighted at just how good our industry has become at what we do.
yesterday I was nosing around the NIB website looking at health insurance options. I went there, by the way, as a result of word of mouth (thanks Nic) - about which the soon-to-be-released book Brandwashed by Martin Lindstrom will observe that "ninety percent of brands recommended by [a WOM experimental family called] the Morgansons were purchased by every person who entered the family's sphere". we truly buy because of what other people buy.
but I digress. the point is that I was on the NIB website and started a quote but didn't complete the application and happily moved on with my life.
until today.
when I was served with an ad for NIB whilst watching a YouTube clip (entirely, I may ad, unrelated to health insurance) ... and exclaimed to twitterpod II and beyond that "I've just been re-targeted".
which is a pretty stupid / obvious / unnecessary thing for a media planner of ten years to observe.
but exclaim I did.
the fact that NIB had furnished me with a cookie then streamed an ad right at me (frequency cap of three - I checked) still filled me with a pride that what we do not just awesomely works but, more importantly, is finally delivering on the long-held promise of a segmentation of one.
because the point is that I’m not in an NIB segmentation … or at least I certainly wasn’t targeted in the first instance as one (I sought them out). digital media allows me to be in a segment of one – a segment called ‘Chris in Sydney who clicked but didn’t follow through for a quote on 27/9/11’.
the promise of digital planning is not just the volume (there are, according to Mashable, currently 17,031,375 of these segments in Australia alone*) but that these segments aren't discrete. they are networked. and that means that they're not segments at all.
they're nodes.
at the moment I need to manually tell my network that I interacted with an ad for NIB, but that's becoming - certainly for the super-sharers - a passive process.
and for high-interest categories that means that not only do you not need a segmentation, but that you have the potential to instigate hundreds of super-relevant networks around an idea or piece of content.
networks that self-create and spread, from nodes just like ‘Chris in Sydney who clicked but didn’t follow through for a quote on 27/9/11’ ... like I said, you can't help but be just a little bit delighted by that.
you can also be delighted by this ... enjoy ...
*online population of Australia
Coles and Woolies' Death Star moment: the beginnings of the brand rebellion in Australia's Supermarket Store Wars
my return from a rather long winter blogging break has been greeted with the glad tidings that some brands have finally chosen to take a stand against the big two Australian supermarkets. Adnews reports today that Glenn Cooper, boss of Coopers Brewery has described Coles and Woolies as being the "killers of Aussie brands". Cooper went further:
SMH only last week reported that this is an opinion recently echoed by no less than Heinz' chief financial officer and executive vice-president Arthur Winkleblack. in a briefing to US analysts on the company's first-quarter earnings, Winkleblack specifically name-checked the Australian supermarket sector and blamed them for an erosion of its margins. sentiments echoed by Heinz' chairman and chief executive Bill Johnson:
the supermarket's argument is manifold and includes the rationale that this is all in consumers' interest - a Coles spokesman, in response to Winkleblack's comments, stated that "We agree with Heinz's comments that companies need to be competitive to ensure the best outcomes for customers."
but consumers don't benefit from Supermarket competition. the concensus of an April opinion piece in the Sydney Morning Herald was that consumers - if they see any benefit at all - see it only in the short term. Academic Angela Paladino commented that:
Nick Stance, Chief Executive of Choice agreed:
there are only two winners in Coles and Woolies' Store Wars; and that's Coles and Woolies. brands have and continue to exist at the mercy of these distribution Death Stars. now Coopers and Heinz have come out of the supermarket closet. it's just two brands. but that's two more brands than a few months ago.
Coopers and Heinz's coming out is important. brands standing up to Coles and Woolies is important, because the dominance of Coles and Woolies is hurting brands ... not least in expectations of media investment...
I've sat in more meetings that I care to recall where there have been two invisible seats at the table. in discussions where the spectre of supermarket's expectations for media investment loom large over marketers, marketers dependent on these two Death Stars for significant - and often increasing - distrutions volumes.
it's a sweeping generalisation to say that Australian brands are too dependent on the broadcast interruption model (of which TV spot advertising is the main solution) for their marketing needs. never-the-less its a generalisation that I believe is true. a reliance on this 20th Century marketing model isn't just down to the pressures and expectations of Coles and Woolies on media spends, but they sure as hell play a very significant part: too many brands over-invest in broadcast interruption because its what supermarkets want and expect to see on those brands' media schedules. supermarkets' expectations are holding back brands' media innovation potential.
but the effect and influence isn't limited to consequences above-the-line (a term which I hate but I'll run with anyway). prices are down. great. but its not the supermarkets funding this price decrease - it's brands. manufacturers are paying for prices to be down with their below-the-line (ditto) budgets. and because prices are down for good manufacturers will be paying for them to be down ... for good.
The Order of Coopers - owned and earned media curating a community for the brand
what is phenomenal in this context are the levels of innovation that do get out of markets and agencies' doors and into the world. despite the vast majority of bought media investment being diverted to an outdated (and actually never that well proven model), Coopers - for example - have built a hugely utilised online site and community. they are investing in owned and earned media that are building a community with direct links to their brand and business that side-steps the supermarkets' Death Stars.
brands, it would seem, are starting to have had enough. the Supermarket's weaponary have become simply too powerful to ignore. to paraphrase Senator Organa, 'the more you tighten your grip Coles and Woolies, the more brands will slip through your fingers'.
the rebellion, I very much hope, has begun.
full disclosure: I work as a media strategist for several brands that have distribution through Coles and Woolworths in Australia. the above comments reflect my, and my opinions alone. the advice and recommendations I make to brands take these - as well as other - opinions and considerations into account.
Posted by chris stephenson on Wednesday, 07 September 2011 at 18:38 | Permalink | Comments (0) | TrackBack (0)