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Lately it seems that whenever I turn on the TV (or YouTube or Hulu) I am forced to endure advertisements that feature market research as the central creative concept.

As a researcher, I find it difficult to watch these ads because they often misrepresent how and why research is conducted, which impacts the reputation of the research industry as a whole and makes me feel sad and misunderstood. While I can’t deny that having a spotlight on the industry is somewhat flattering, in the end I always come away with the same feeling: that the use of market research in ads often results in unengaging and ineffective advertising.

To illustrate my point, I have compiled some of my least favorite ads along with some of the comments and responses that these ads have garnered online.

Warning: the following ads contain cheap shots below the belt and may result in extreme brand disloyalty!

1. Research as reality TV:

The consumer wisdom on this commercial is that it tries too hard, uses too much product placement, has awkward humor, and does little to promote the product. Also, it is scary. In fact, if the comments to this video are an indication, it almost does the complete opposite of what it should:

“This told me nothing about the soda. Another waste of time commercial trying to be funny and creative but falling flat on its face.”

“I’m never trying this flavor because of this crappy commercial.”

“If a strange man walked into a room that was mostly empty except for me, and if I was a female, and if he started blocking off the exit, I would be running like mad.”

A lot of the comments to this video are about how awful the soda is, how bad it is for your health, and how scripted the actors are, including the actors themselves weighing in – not necessarily the best response.

This commercial reminds people that they are watching an advertisement from a company that is trying to make them like a product. People are savvy and they know that this is a forum to speak directly to brands… And equipped with that knowledge, they hold Mountain Dew and PepsiCo responsible:

‘How is this about soda? And if this is an ad about trying to portray a feeling you get when drinking Mt. Dew it is not a feeling that I want. Ummm Hello PepsiCo time to move on.’

Finally, it is quite scary to consider being ‘accosted’ in a focus group facility (they are strange places!) As a researcher, I rely on participants taking interest in in research – it worries me that people might not consider participating if this is what they can expect when they show up.

2. Sending the wrong message:

This next category is actually the one that inspired me to write this article. It is so cringeworthy that every time it pops up on Hulu, I click ‘not relevant to me’ in a personal effort to protect my future sanity.

Many people find the above ad confusing. There is an effort to unpick the logic but it never quite works out in Geico’s favor as viewers call out for the ‘old Geico’ ads, the ones that made them a household name:

“Why get car insurance based on the taste of a drink??”

“I don’t think this was supposed to make sense.. right?”

“All I know from this is that Geico is car insurance…or a juice product…”

“I wish their “Does GEICO really save you 15% or more on car insurance?” ad campaign is back!”

Here is a similar style from Verizon:

and in case you thought the 18-24 demographic was exempt… Well, no:

The sentiment towards these types of commercials is very clear and unsurprising considering the premise of blatant data manipulation. It was difficult to find comments from these videos that didn’t include a string of curse words. Unlike the Geico ad, the Verizon examples are called out for being patronizing and for ‘treating customers like idiots.’

“It doesn’t matter how you present it. Verizon is very pleased with themselves for no good reason.”

“That focus group sure is biased”

“I came here just say this commercial is annoying, that’s how obnoxious the people and the acting is.”

“I can only imagine how many people Verizon has driven away with this garbage.”

In my opinion, the above examples are the most damaging to a brand’s reputation because they are conceptually based on being ‘untruthful’ or intent on hiding something – in short, trickery.

By presenting this to consumers, it sends the message that companies are not interested in validity or authenticity – they are out to pat their own backs and get the answers they want no matter what. No only does this take a punch at our clients, but to researchers and advertisers alike – it is harmful all around.

3. When it works

It is not fair to say that every commercial that uses market research as a creative concept is unsuccessful – there are few examples where it works well.

Before you check out the video below (and I recommend the series that goes with it) keep in mind that these ads work because they are not posing as reality and they focus on funny or interesting people participating in the research – not the research itself.

and of course, some excerpts from the comments section:

“Ahhhh!! they are soo cute!!”

“Smarter then the models, seniors, glam rockers, guidos, surfers hahah”

“So is this everybody’s first focus group? Ha ha”

“At the very beginning of the video in the bottom right corner it says “Dramatization with actors” thumbs up so people are not deceived!”

These ads don’t try to be real, they don’t set out to boast about themselves, and they are incredibly subtle. But more than that, they are entertaining, engaging, and people want to keep watching because they are fun and the participants are the spotlights – not the research or the researcher. It even looks like fun to me – researcher approved.

Pulling the plug on this creative device:

With exception of the example above, people generally interpret the use of research in commercials as derogatory and patronizing. It can be done with success, but it happens rarely. The only way I could consider any of these ads as working is if the strategy behind them is to lower consumer expectations as much as possible. If that is the case, then job well done.

My experience in testing ad concepts is that the best ones are simple. They tap into strong emotions, or are thought provoking and as a result are genuinely entertaining. They tell stories that people can and want to connect with.

To put it plainly, market research does not work well in ads because it IS market research. While it might be fun for researchers, the majority of people actually find what we do really dull. So presenting it as something they should be interested in is a step in the wrong direction – consumers are interested in brands, products and experiences, not the research that goes into understanding all of those things.

Market research lives happily behind the scenes by helping businesses and organization understand audiences and by contributing to the development of creative ideas that speak directly to consumer benefits.

Looking at our past couple of blog posts, you might think we’re a little excited to be opening our new Asian offices in Singapore and Hong Kong, and you’d be right. There’s plenty to be excited about. As I discussed in a previous blog post, The Rise of the Chinese Social Consumer, Western businesses cannot afford to ignore the potential in Asia, and China in particular.

And many brands aren’t. Brands like Starbucks, McDonald’s, and Burberry are tackling the Chinese market, and in many ways winning with innovative strategies and an understanding of the culture in which they’re playing. Let’s take a look to see what they’re doing right.

Neighborly Neighborhood Starbucks

When Starbucks entered China, plenty of people forecasted failure, and for a seemingly good reason: The Chinese love their tea. Starbucks didn’t try to change that. Rather, as Helen Wang discussed in Forbes, they adapted to the local environment, using tea ingredients in their beverages. Even after they had accustomed their consumers to drinking coffee, they still didn’t take a global, or even national, approach. They went hyper-local, allowing each store to choose its menu from a beverage portfolio.

A Chinese Starbucks

Image by Flickr user NH53

But perhaps “local” is the wrong word. It’s not about being geographically focused; it’s about being neighborly. This is what Starbucks is doing with its social media and digital marketing.

On Sina Weibo, the Chinese version of a suped up Twitter, Starbucks shared not only coupons and deals, but questions, creating a friendly, two-way relationship with followers, as this Ad Age article describes. That friendly attitude is visible in one of their more recent campaigns from last October, too, to promote their new Refreshas beverages. Consumers would use their mobiles to scan a QR code in stores and friend Starbucks using the WeChat (Weixin in China) group messaging app. Then they’d text Starbucks an emoticon to represent how they’re feeling. Starbucks would reply back with a song specifically chosen to lift the consumer’s mood. Sales went up and they earned 9% more Sina Webo followers. All from being neighborly.

Not only is Starbucks friendly, but it is also smart – using local partners who understand the digital ecosystem, such as the close interplay between mobile and microblogging. They partnered with a local mobile advertiser Guohe Ad for their 2011 Christmas campaign, which combined both mobile and microblogging in a Sina Weibo app that allowed users to check-in to the Starbucks stores to get a free size upgrade on their drinks.

McDonald’s and Good Parenting

McDonald’s has also been rather successful in China. According to Seeking Alpha, it’s still opening new stores in order to reach 2,000 by 2013. And at least part of their success is due to good positioning.

Ronald in a parade

Image by Flickr user MoonSoleil

McDonald’s in the US has always been geared at least partly toward children with Play Places and Happy Meals. Chinese mothers tend to be very goal oriented, wanting their children to succeed scholastically, but at the same time, there is a trend towards letting their children have fun and not pushing too hard. To fit into this excellence-oriented parenting world the McDonald’s website promotes learning with multiplication “Happy Courses” taught by Professor Ronald. McDonald’s becomes, then, not just a treat, but a treat that promotes “stealthy learning,” or learning that masquerades as fun, as Tom Doctoroff, the North Asia Area Director of JWT, discusses. It’s a place to hide away from the stress of constant high performance, providing mothers a way to feel less guilty about pushing their children so hard.

This association with high achievement doesn’t end with the Happy Meal, however. Take a look at this recent ad for McDonald’s new Chinese Black and White burger combination as part of their new China Youth campaign. It’s all about encouraging young people to go out and accomplish what they set their minds on. Only now, it’s not Mom who is doing the encouraging.

Burberry’s Shareable Luxury

One of the key elements of the Chinese luxury market online, according to this luxury market report from GroupM China and CIC, is “shai” or the showing off of a product. This fits into an ecosystem of product trading and is also a way for consumers to learn about what is available and what’s good. But it also means, as Saurabh Sharma from OgilvyDo says:

“Digital content for luxury brands needs to offer something that’s worth sharing. Imagine things like first-hand account of space tourism or the experience of climbing virgin peaks across various continents. Such stories and experiences have immense talk value and give valuable social currency to people who can access it.”

Burberry accomplishes that, by sharing live fashion events on Sina Weibo, like it’s Burberry Beijing Show on April 13, 2011. It wasn’t just live-Tweeting as we know it in the West. Sina Weibo has different functions than Twitter, including threaded conversations, private groups, a small blogging platform, and embedded photo and video sharing. Burberry made this live-sharing special by having two Chinese celebrities do the “Tweeting” and a Burberry designer answering fan questions. According to the GroupM China and CIC report, this helped Burberry to capture the top spot of the surveyed luxury brands for the most account engagement. As Gallie Ng from Sina Weibo put it, brands can use Sina Weibo to “share instant updates and joy with users who cannot attend [the events].”

Burberry is also on the right channels, like Youku. Youku is similar to YouTube, but unlike YouTube it targets young, affluent urbanites, otherwise known as Burberry’s Chinese demographic. Beyond just posting videos, Burberry has been known to live-stream events on the platform.

Digital marketing for luxury goods is difficult by nature because it is impersonal and can be perceived as less exclusive, but Burberry is tackling the challenge well by understanding how the Chinese consumers engage with luxury goods content online.

All three of these brands, Starbucks, McDonald’s and Burberry, are using the unique tools available to them in China and combining them with an understanding of Chinese culture. Starbucks is taking advantage of the regional differences, McDonald’s of the different parenting styles and approaches to success, and Burberry of the way people relate to luxury goods. If you want your business to succeed in China, too, you’ll have to approach consumers in a similar fashion – understanding their particular media ecosystem and culture.

Did the #WaitroseReasons Twitter promotion snatch success from the jaws of disaster – or the other way around?

Three weeks on, marketers are still talking about it: it’s clearly made impact on one group at least! But to us, as social media researchers immersed in hundreds of comments every day about how people talk about brands, much of the analysis seems naïve, based on an overly superficial understanding of what people are doing when they talk on social media. A hint: they’re not really talking about your brand…

But before we explain why, a summary of the Waitrose kerfuffle:

On 17th September, @Waitrose asked their customers to share their reasons for shopping at Waitrose, using the hashtag #WaitroseReasons. They got a lot of responses – probably not in quite the style they expected… Instead of an outpouring of brand love and affirmation, Twitter became a torrent of snark:

Oops. The runaway Twitter discussion produced a corresponding surge in digital industry & marketing press and blogs trying to make sense of the situation.

This followed a classic dialectic trajectory – first, the stern claims that “Waitrose was asking for trouble”, followed by enthusiastic rebuttals that all publicity is good publicity, and all ‘engagement’ is a sign of brand affection. But this hasn’t culminated in synthesis, but rather name-calling: specifically, Mark Ritson in Marketing Week arguing “Why marketers are socially stupid”. A bold claim: let’s examine it.

Ritson begins by making a very important point: situating Waitrose’s social media tactics in the context of their overall brand strategy:

“The ultimate purpose of Waitrose’s social media strategy is not to start conversations or increase the number of followers the brand has on Twitter. The purpose of Waitrose’s social media strategy is to build its brand and increase sales. Waitrose has had a successful strategy to do just that, built around two approaches – first, getting existing shoppers to shop more frequently at Waitrose and second, attracting new shoppers into the stores.”

This is really important, and not often enough done. We entirely agree – volumes of mentions or retweets are not a meaningful end in themselves, and social media metrics shouldn’t blind researchers or brands to the real goals.

What we disagree with is his next claim:

“But this campaign inadvertently positions the supermarket as posh, snobby, overpriced and reserved exclusively for the upper classes. That’s terrible news for Waitrose, because it has spent the past four years positioning its brand away from these stereotypes and towards a more accessible, value-based position to drive market share gains.

[…] Existing shoppers at Waitrose, the middle-class segment it targets, will feel sensitive and perhaps a little less enthusiastic about entering the store now, and store traffic will decline. Potential converts to Waitrose will have had their stereotypes confirmed and be less likely to consider the switch in future. Perhaps neither of these impacts will be huge, but they will be negative and they were self-inflicted.”

What’s Ritson’s thesis – that people will take the “butler” and child-called-Orlando comments literally, and conclude that Waitrose is not a place for people who don’t have these things? This is suggesting someone’s “socially stupid” – but not the marketer: the Waitrose shopper. Twitter might allow only 140-characters, but we argue there was a lot of social nuance encoded in those tweets.

Defining features of British humour and culture: self-deprecation. Sarcasm, irony. We refuse to take ourselves seriously, and we’re somewhat keen on a bit of understatement. As a result, every international guide to British culture puzzles over the way we never seem to say what we mean. “Your report was… quite good”, says your boss with a wince. Rosie Huntingdon-Whitely “scrubs up alright”.

“Put the papaya down, Orlando!” has to be read through this lens – understanding its meaning through considering what is implied, what is inverted, and the shared tacit knowledge that’s referenced. This includes:

  • Orlando is a slightly silly & pretentious name for a child – and giving children slightly silly & pretentious names is a middle-class social trend
  • Recognising this shows familiarity with this class, and suggests the speaker is of this background or close to it – so it’s also a self-deprecating joke (which aren’t aggressive but rather inclusive – inviting recognition)
  • Recognising buying exotic fruit like papayas as another signifier of middle-class identity…
  • …and moreover the behaviour of talking loudly about specialist foods in order to demonstrate and assert middle-classness
  • Using irony and sarcasm to show that you’re not “taken in” by the brand’s marketing – (you believe) you’re subverting it
  • And by the way, the kind of person who does all these things would typically shop in Waitrose.

In fact, this is what almost all the #WaitroseReasons tweets were doing: making observations that demonstrate the author’s familiarity with and membership of a specific segment of the more comfortably-off middle class.

It went big on Twitter, because it was a way for people to talk about their favourite topic: themselves. The discussion around the hashtag wasn’t really about Waitrose as a retailer so much as a way for people to start talking about that great British obsession, social class, and where we fit into the hierarchy. It was a discussion about belonging: people were collectively & collaboratively playing with the boundaries of belonging to the middle class. Waitrose was just a signifier – a particularly rich and meaningful one, a national treasure whose meanings are owned by its customers (not just its marketers).

In fact, it mightn’t be something marketers want to hear, but people don’t really want to have relationships with brands as such. If you think about it, it’s pretty weird – a passionate love affair with the nexus of meanings encapsulated in your shampoo bottle? No: as Mark Earls argues in ‘Herd’ (and we discuss in Augmented Research), “We talk of the relationships consumers have with our brands as if they were primary, but consumers’ most valuable relationships are not with brands but with other consumers.”

#WaitroseReasons was a chance for people to demonstrate their social tribe allegiance and how witty & clever they could be – two very desirable social markers, hence the massive participation. It’s basically #MiddleClassProblems with a brand attached. Was this Waitrose’s strategy? It’s not clear. It certainly was Alan Sugar’s, though, who invited people to share #TheWayISeeIt for the launch of his book – gaining 390,000 tweets, celebrity involvement and major press coverage from giving people a chance to share who they were.

But what about Mark Ritson’s second point: that #WaitroseReasons was exclusionary, that it was sending too many people a message of “not for me”?

There’s a grain of truth in this. What Waitrose did was bold – it wasn’t an ‘everyman’ strategy but rather spurred discussion about group norms. As such, this is necessarily a “boundary policing” activity, one that defines who’s the “us” who share these norms, and by logical extension who’s the “them” who doesn’t. And yes, for some people kids called Orlando and fruit like papayas are pretty far from their lives.

But brands have to do this – they have to define their audiences and target markets, rather than hoping to be all things to all people. Waitrose is a middle-class brand, its locations, pricing, product range and marketing all make this clear. Its value strategy is merely about trying to appeal to a more budget-conscious middle class shopper who might have moved away – they were never staking their claim to Asda’s demographic. It’s about consolidating loyalty.

By participating in a discussion about social norms, then, Waitrose strengthens its identification with this middle-class group. By being able to “take a joke” and “keep their chin up” during a hazing ritual, Waitrose comes out of a social media pasting showing they can demonstrate English middle class values too.

And connecting social activity back to brand strategy, then hopefully we’ve made it clear that this isn’t just a win on awareness. No: it’s also a complex but powerful statement of identification – and thereby brand loyalty. And brand loyalty gets feet through the door and keeps the tills ringing.

There is now a perfect storm of opportunity arising through the rapid progression of digital devices and pervasive internet connectivity.

Nike have been experimenting in this space for some time: Nike ID allowed people to customise their trainers, and Nike+ lets users track their runs using an iPod or iPhone and a Nike app.

The recent launch of Nike Kinect Training on the XBox harnesses the training expertise Nike use with their elite athletes to help your Average Joe improve fitness and skill levels. Nike plans to integrate the Nike+ app, Fuelband (a watch-like monitoring device), and Nike Fuel (a Nike-developed unit of energy expenditure) into the training program.

So what’s interesting about what Nike is doing is they are slowly but surely integrating themselves into the world that surrounds their products, the world of exercise and sport. The way they are doing this smacks of more than simply jumping on the digital bandwagon. There is still a long way to go before the service element of the company rivals sales of shoes and clothing – however they are making a very smart play for a number of reasons.

1. Know thy customer and let thy customer know themselves

There is mutual pay off for Nike and users of their self-monitoring services. Nike is able to create value for users where none existed before simply by holding a mirror up to their fitness behaviour providing goal setting and feedback. The pay-off for Nike is that they get access to rich data around customer behaviour and loyalty from customers who typically don’t want to give up their personal data.

2. Your brand can open new markets for existing innovations

Nike aren’t necessarily making waves in technology innovation they are being smart in taking technology which was once used by an elite sports audience and making it relevant to a mass market via the Power and Reach of their brand.  Nike = sport = performance = being a healthier better you, so why wouldn’t they be able to help you train better?

3. Competitive advantage will come through making technology work for people

The potential for monitoring isn’t going to be limited by the pace of change in technology as smart wireless sensors are becoming more available e.g. sensors for body fat percentage, accelerometers which can be used measure force and effort.  It’s not the ability to track things but the ability to make sense of the data and make it useful and relevant that matters. A consumer brand like Nike is in a great place to do this.

4.  Services let you deliver new opportunities for your brand

Nike understand that the game has changed and what the advent of the digital world means for power brands like them. They understand that this brave new digital world isn’t just one where they can advertise and distribute their product differently. Nike clearly understand that their brand gives them licence to go beyond producing trainers and clothing and into other areas of people’s live in a way that other consumer goods companies fundamentally don’t at the moment.

5. Services make you socially relevant

Rather than simply advertising online creating the right services and allowing customers to capture news worthy information allows you to be embedded in conversation between people.  Sharing a route for a run, or your high score on a workout are things people do anyway, just now they do it with a neat little Nike swoosh next to it.

Over the past five years there has been a great deal of Social Media experimentation going on in big companies – usually within the marketing team and generally at quite a junior level with the help of advertising, digital, PR agencies and self proclaimed gurus. It has been a period of trial and error and not a lot of strategy!

According to a recent survey of blue-chip companies*, a legacy of this experimentation is that the average company now has 178 official social media accounts! With very little co-ordination or consistency between different regions, product lines or business units there is huge potential for confusion for the customer.

In fact, the result in the growth of social media and experimentation is the sheer amount of data it has produced and the white noise it creates. In a nutshell, companies have been struggling to determine what social interactions are useful and profitable because there is so much data.

Hal Varian, Google’s Chief Economist
“We used to be data poor, now the problem is data obesity, between the dawn of civilisation and 2003, we only created five exabytes of data now we’re creating that amount every two days”

Companies are drowning in a sea of consumer status updates, videos and blogs that has left many brand owners feeling cast adrift from the certainties of the broadcast age. Essentially, many companies fear that they have lost control of communication with consumers.

But this is changing in 2011…it is clear the BIG companies have understood that social media is too important to be left to the marketing department. Over the past 12 months they have been busy creating lots of new senior social media roles** with cross functional roles and significant new budgets.

Jeremiah Owyang defines these new roles as the rise of the Social Corporate Strategist:

“The business decision maker for social media programs – who provides leadership, roadmap definition, and governance; and directly influences the spending on technology vendors and service agencies, While this position doesn’t exist officially by title in every corporation today, this role will become pervasive in the coming years!”

So why is this important for the research industry?

When you look at the priorities of the new Corporate Social Strategist it becomes clear that there is a large role for Research Companies to play as objective and strategic partners.

Altimeter asked 140 corporate social strategists to give their top 3 social strategy objectives

*

The 3 areas where we can add value as research companies is clear:

1. Start to create robust ROI models for their social activities
2. Gain insight from social media to help develop better products and communications
3. Launching ongoing listening and social media research programmes to stay close to consumers needs

Of course experimentation will continue but we are entering a new era where decisions will be made within the framework of an overarching Social Media Strategy and will be driven by the analysis of data and not just on gut instinct. This provides Research companies who understand social media data with a clear opportunity to become strategic partners and help shape how companies can become more adaptive to consumers real-time needs.

* Altimeter Report: 2011 Internal Goals In Corporate Social Strategy

** @marshallk/social-strategists.