BLINK 08 08 MEDIA,TRENDS & CONSUMERS QUIZ: Emojiads PUBLISHED BY Do you recognize the most popular video ads of the past 12 months? If you're struggling, it might be because we’ve translated them into today’s version of hieroglyphics: emojis. Emojis or emoticons are increasingly being used by younger consumers as a new system for communications. THE SYSTEMS THINKING ISSUE We've printed a list of the 10 most shared video ads of the last year. All of them have been viewed millions of times, but.... can you recognize them? Can you work out which video ad is which? 1 2 3 4 5 6 7 8 THE SYSTEMS THINKING ISSUE 9 10 Find the answers at mediacomblink.com MIND YOUR LANGUAGE Use the right lingo to understand and optimize your communications system SMARTER METRICS Avoid siloed measures that can distort your investment strategy WHAT’S HAPPENING IN YOUR SYSTEM? Answer 12 questions that can uncover connection opportunities CLEAR CONNECTION STRATEGIES Check out what marketers at GSK, SEAT, Shell and SONY Mobile see as their biggest opportunities Words: Stephen Allan, MediaCom Worldwide Chaiman & CEO INTRO Welcome to the new issue of BLINK! BLINK Our focus this time is on Systems Thinking. no 8 2014/2015 It’s an issue that’s top-of-mind here at MediaCom, because we’ve spent a lot of time over the past 18 months working out exactly how to apply Systems Thinking to the task of optimizing our clients’ marketing communications. MediaCom Global 124 Theobalds Road London WC1X 8RX UK The result is our new planning process, 20|20 Connections (see p. 36) , and our determination that our job is always to optimize the entire system of communications – not just the channel silos. Tel.: +44 (0)20 7158 5500 Email:blink.magazine@mediacom.com Web: mediacom.com / mediacomblink.com So what is a System and why is Systems Thinking so important? For a detailed answer, take a look at Putting Systems Thinking into Communications Practice p. 16 and Language of Systems Thinking p. 06. Editor-in-Chief: Signe Wandler, MediaCom signe.wandler@mediacom.com For a quicker answer, I like the analogy of “family”, favoured by Peter Senge, who teaches Systems Thinking at MIT Sloan School of Management. Design & Layout: Art Director, Martin Dahlbeck Propellant, propellant.dk Senge says: “Whenever I’m trying to help people understand what this word ‘system’ means, I usually start by asking: ‘Are you a part of a family?’ Everybody is a part of a family. ‘Have you ever seen in a family, how people can produce consequences - how people act, how people feel - that aren’t what anybody intends?’ ” Cover: Sam Falconer As Senge explains, this analogy takes us away from the jargon of Systems and Systems Thinking, and makes more vivid the undeniable fact that we all live in webs of interdependence. And that, if you’re not extremely careful, you can generate problems in these interdependent webs or systems that you really didn’t mean to. 12 Vice Media: The Revolution Will Not Be Televised Q&A with Vice’s Matt O’Hara on how to engage the younger generations in millions and create groundbreaking content. 06 ISSN: 1903-5373 The Language of Systems Thinking 26 The opinions expressed in the articles are those of the authors. Minor textual contents may be republished as long as the original author and publication are cited. Get introduced to the vocabulary of systems to fully understand how they work. By Jon Gittings, Global Business Development Strategy Officer, MediaCom Worldwide All brands need three kinds of content and effective distribution strategies to appeal to the millennial mind-set. By Nick Palmer, Head of Content Strategy, MediaCom Beyond Advertising EMEA So Systems Thinking isn’t some abstract buzz-phrase. Being good at Systems Thinking is about foreseeing and preventing problems, and about maximizing the health and happiness of the family – or, in our case, maximizing the effectiveness of a communications system. 20 34 Regards, Stephen Allan Steps to Successful Omnichannel Retailing 5 Questions for Marketing Leader Chris Hayek Identify your customers’ key decision points along the purchase path and be ruthless about removing friction. By Stephen Mader, Digital Retail Insights Director, Kantar Retail The challenges of marketing, taking calculated risks and driving innovation. Q&A with Director of Global Brand Marketing for Shell Lubricants 2 BLINK 08 · Systems Thinking Issue Printed By: Vilhelm Jensen & Partnere Content, Connections and Millennials BLINK 08 · Systems Thinking Issue 3 CONTENTS FE ATURE S 06 The Language of Systems Thinking 16 Putting Systems Thinking into Communications Practice 24 Wearing our Hearts on our Sleeves 26 Content, Connections and Millennials 30 Understanding Systems, Designing Behavior Change 36 Systems Thinking: A World in which an Audit is a Good Thing 42 Measuring the System for Correct Attribution 44 How to Connect your Brand with the Connected Consumer 48 New Opportunities to get Connected on Facebook M:FILE S 22 Three Valuable Insights from TED 39 Etihad Maps the Future for Business Travelers INTERLUDE S 32 The Blind Men and the Matter of the Elephant 50 Habits of a Systems Thinker Q&As 09 The Current State of Marketing from Those Who Know 12 Vice Media: The Revolution Will Not Be Televised 34 5 Questions for Marketing Leader Chris Hayek POVs 4 20 Steps to Successful Omnichannel Retailing 40 Connected Video for the Connected Consumer BLINK 08 · Systems Thinking Issue 16 09 Putting Systems Thinking into Communications Practice The Current State of Marketing from Those Who Know Adding systems thinking to communication creates great value, and provides new solutions and opportunities. By Jon Gittings, Global Business Development Strategy Officer, MediaCom Worldwide Seasoned senior marketers from Sony Mobile, Seat and GSK answer questions on the current state of marketing. 44 24 How to Connect your Brand with the Connected Consumer Wearing our Hearts on our Sleeves Meet the Connected Consumer. A group of people less defined by age and class than by their interests and attitudes. By Phil Jones, Global Agency Business Leader, Google How new systems will make intimacy scalable. By Neil Redding, Senior Partner, Senior Director of Innovation, MediaCom USA 48 42 New Opportunities to get Connected on Facebook Measuring the System for Correct Attribution Systems thinking offers new opportunities for brands on the world’s biggest social network. By Nick Burcher, Head of Social, MediaCom EMEA Measuring a system fairly is as important as understanding how it works. By Jeremy Griffiths, Chief Business Science Officer, MediaCom Worldwide BLINK 08 · Systems Thinking Issue 5 Words: Jon Gittings, Global Business Development Strategy Officer, MediaCom Worldwide FE ATURE The Language of Systems Thinking To really understand how systems work, you need the right vocabulary. Jon Gittings explains. 6 BLINK 08 · Systems Thinking Issue Understanding the language of systems helps people make the right decisions and create change. This is critical for any enterprise and organization, along with the executives in charge. The first step is to understand that a system isn’t just a collection of things, but rather an interconnected set of elements organized to achieve a function or purpose. You also need to understand that there are implications to changing any of the elements or interconnections and, most importantly, the purpose. Although systems sound complicated, the beauty of systems thinking is actually how it can make the complex simple. And the more you understand and speak its language, the more straightforward it can become. kicking a ball. Change the interconnections, however, and the impact is much more dramatic. Create a new set of rules – allow players to handle the ball, for example – and you have a whole new ballgame. If you change the purpose of the team from winning to just having fun, you have also made a profound shift in what you are likely to see on the field (and where the team ends up in the league standings). Purpose is one of the most powerful ways to influence the behavior of a system. Why? Because it sets the direction for the system. For businesses and marketers, a poorly-defined purpose is often at the core of one’s inability to direct or move the system in a desirable direction. Take, for example, a football team, whose purpose is to win games. The players and the coach constitute the elements of this system, and they can be changed at will. The interconnections form the framework in which the game is played, and play is defined by physics, the rules of the game as well as how the coaches train the team to play. The importance of time These terms, however, broadly define the system at a single moment in time. The true power of a system is only revealed over a period of months, years or even decades. Words that add the dimension of time to our appraisal of systems include stock, flows and feedback loops. So what happens if you change the system’s various components? Alter the elements and you would still have a football team. It may or may not perform better, but it would still be eleven players Stock is the collective noun for all the measurable elements in the system. To continue our football analogy, it represents the skill of the players and their understanding of the opposition’s skill. It is BLINK 08 · Systems Thinking Issue 7 the store of resource that builds up in a system over time, whether that be tangible material or intangible knowledge. The stock will increase or decrease when there is a flow. Flows can be growth or decay, purchases or sales, deposits or withdrawal, and successes or failures. Football players’ skills can grow or decay as they train or get injured, while a team’s skill level can improve or decrease as players’ contracts are bought and sold. If a player’s propensity for injury increases and he is no longer able to train as hard, that would impact the stock. But what happens if a young player joins the team, becomes an element of the system over time and improves his play? That would clearly be a positive flow. Perhaps the best way to view a system is as a rather crazy set of plumbing. Every pipe has its own tap that can be turned on or off, but the decision to reduce the flow in one section of the system will automatically boost it elsewhere. It’s these feedback processes that make it so essential for a company to operate its whole system, not just each element in isolation. After all, if attempts to reduce or increase the flow in one part results in the opposite impact in another of equal importance, then a system has not progressed toward its purpose. Moreover if the system or the pipes aren’t properly connected, the result is leakage or wastage in the flow. Not only is it important to ensure that the taps are correctly positioned but your pipes need to be seamlessly linked in order to have a healthy or optimized system. The impact of feedback Understanding feedback loops is critical to systems thinking. Some scenarios that look like they are boosting in-flows to stocks could trigger other events that have the opposite effect. For example, if working hard earns you more money, you create a positive flow to your bank account. The longerterm feedback could be a decline in motivation to work as your bank balance rises, or you may become more relaxed about spending money. These are two potential negative feedback loops. Feedback loops come in a variety of different forms. Balancing loops – those that are ultimately self-regulating – might oscillate around a chosen level of stock, but eventually return to the same level. The other kind of feedback loop encourages more input to the stock that’s already there. 8 BLINK 08 · Systems Thinking Issue In our banking example, a reinforcing loop is one where an account is paid interest according to the terms of the account. The more money in the bank, the more interest earned. As the old saying goes, the rich get richer. And as Sir Isaac Newton might have said, every action creates a reaction in a system. Gaining leverage The final key term when describing a system is leverage points. Leverage points are the moments or places in the system where chosen actions will (or won’t) propel the system toward its purpose. Insight tells us where these points are and how power should be applied. In a communications system, marketers and strategists will understand these as the right content, right time and right place to deliver their messages. Identifying a leverage point and applying the correct change elsewhere in the system might not result in immediate action, as often systems will be buffered in some way. But over time – depending on the size of the buffer in the system – the system will move in the desired direction. A classic example of a buffered system is the mobile phone market. Let’s say Company X brings out the most technologically-advanced new handset. Although the product is competitively superior, it takes time for the company’s market share to reflect the breakthrough. This is because there are significant buffers in the system, namely the length of phone contracts and consumers’ inability to change carriers without incurring massive charges. Another buffer is the company’s ability to manufacture enough handsets to meet demand. In many ways, this is the scenario facing smartphone maker HTC; while the company may have started out with better technology and reviews, it continues to struggle due to a legacy of manufacturing and distribution buffers. Find your inner systems thinker The best way to observe and understand how your system operates is to sit back and watch. Access your inner naturalist. Observe how the system behaves while identifying its flows, elements and the interconnections. Systems are complex. You might think you have tamed yours, but be assured that it will evolve and continue to create new challenges to be observed and met. That, after all, is one of the key pleasures of systems thinking. Q&A with Anton van de Putte, Vice President, Area General Manager North & West Europe, GSK Q&A The Current State of Marketing from Those Who Know MediaCom posed five questions to three seasoned senior marketers from around the world asking them about the current state of marketing, including their most important challenges and opportunities. Here’s what they had to say. 1.Where do you look for inspiration into what’s next for your customers and your business? to everyone in our office, so we can all access the results and interact. I actively follow the media, read newsletters and use GSK’s clippings service. GSK also has a reverse mentoring program in place (where senior managers are paired with more junior staff) to ensure senior management is exposed to trends in digital. We also reach out to small companies like Smartclip 4. How do you ensure the integration and collaboration between marketing disciplines and specialists within your organization? All our people work side by side, and we bolster this by having a digital specialist on every marketing GSK also has a reverse mentoring program to ensure senior management is exposed to trends. (smartclip.com) on a regular basis; they help us understand what “the next big thing” might be. 2. How are you leveraging content and data to engineer the success of your marketing programs? Much of our content is created globally and then adapted for local markets. We back this up with clear ROI measurements for most activities to ensure we are making the most effective investment choices. team. We also have quarterly cross-functional workshops to ensure that everyone is exposed to the latest and most important ideas and tools, and can apply what they’ve learned. 5. What does our marketing future look like? What organizational changes do you believe the industry needs to make to succeed? 3. How are you listening to and prioritizing your customers within your communications system and ensuring they stay loyal? For us, the marketing future is about three things: (1) striking the right balance between global and local teams; (2) continuing to shift investment to digital (and having the right digital KPIs in place); and (3) constantly upgrading our digital expertise. We track all the social media mentions of our brands in the GSK Social Listening Lab. It’s open Alongside us, our agencies must also evolve to continue to add value. BLINK 08 · Systems Thinking Issue 9 Q&A with Jacob Sten, Vice President, Product Marketing, SONY Mobile 1. Where do you look for inspiration as to what’s next for your customers and your business? Our inspiration is to empower and enrich the life of the consumer, providing offerings to enable new and richer experiences. We talk to consumers constantly and generally find two end-states: either a consumer has a need but doesn’t know how it can be fulfilled or, sometimes, we can create a demand for new products and services. 2. How are you leveraging content and data to engineer the success of your marketing programs? Data and content is fundamental to our success, and direct consumer interaction gives us further leverage. Q&A in an increasingly crowded landscape, we need to be very targeted, thoughtful and consistent in how we communicate. Saying no and being selective is increasingly fundamental to our success. 4. How do you ensure integration and collaboration between marketing disciplines and specialists within your organization? Organizational structure alone will not ensure integration and collaboration; a vibrant culture is also key. SONY Mobile has a collaborative, open culture in which everyone can speak freely. It’s about understanding each other’s expectations and objectives, and recognizing that we all have the same ultimate goal. You also sometimes need strong governance during execution phases when tight coordination is vital. The pinnacle will no longer be one single purchase moment, but rather a more distributed level of attention on the entire cycle. I think we can do more with data in three key areas: data from digital and direct consumer interaction can help us better understand consumer needs and cultural differences; data can help us plan our media mix and optimize ROI; and data can inform the consumer journey and help us tailor our activity by target audience. As part of the SONY family, we have access to a wide range of content that can be used to inform both product development and marketing communications. This is an important advantage, but – in a world where content is everywhere – we must strive to create unique and powerful offerings that only Sony can provide. 3. How are you listening to and prioritizing your customers within your communications system? We’ve worked very hard to identify the target audience for both our brand and our product offerings but, of course, we know that consumers are constantly evolving. If we are going to stand out 10 BLINK 08 · Systems Thinking Issue We also make sure that our marketing activities are closely tied to overall corporate goals. This reinforces the importance of marketing and gives everyone a shared context. 5. What does our marketing future look like? What organizational changes do you believe the industry must make to succeed? Two thoughts… one is that marketing will become much more focused on the consumer journey. This will necessitate deeper, more direct engagement with the consumer, and marketing organizations may need to be reshaped to facilitate these conversations more quickly and more easily. Q&A with Juan Pablo Gómez Macfarland, Head of Marketing, SEAT, Mexico 1. Where do you look for inspiration into what’s next for your customers and your business? Digital platforms are an important way to discover innovative ideas and new ways of doing business. Social networks are a big focus group for learning, and we believe that the closer we are to our customers, the more chances we have for success. 2. How are you leveraging content and data to engineer the success of your marketing programs? Clear strategic vision, along with KPIs to measure success, give us the power to focus any marketing Q&A Moving in one direction together also provides a more efficient and less costly way to track and maintain customer loyalty. 4. How do you ensure the integration and collaboration between marketing disciplines and specialists within your organization? Never stop reminding the team what the goals are, how they will be achieved and the role that each and every person plays and achieving our objectives. We hold quarterly marketing check-ins on and align our strategy with our KPIs. Information is power, so the quicker it comes to you – both from within and outside the company – the faster you can move ahead. program and create relevant content for our target markets. 5. What do organizations need to do to succeed in the future? 3. How are you listening to and prioritizing your customers within your communications system and ensuring they stay loyal? Three things: First, organizations must have strong, clear brand values and communicate them across the right channels; second, targeting your message will increase the likelihood of capturing the highest-quality prospects possible; and lastly, information is power, so the quicker it comes to you – both from within and outside the company – the faster you can move ahead. One team, one voice: Having two agencies in one – CRM and Digital – is the best way to build a 360° communication system with the proper focus, relevant information and targeted messages. To read more insights from senior marketing executives go to p. 34 or visit mediacom.com Marketing and consumer engagement will also be much more “always on,” as the pinnacle will no longer be one single purchase moment, but rather a more distributed level of attention on the entire cycle up to purchase and then repurchase and recommendation. BLINK 08 · Systems Thinking Issue 11 Q&A with Matt O'Mara, Vice’s UK Managing Director. Photography: Vice Magazine Q&A Vice Media: The Revolution Will Not Be Televised Founded in 1994, Vice Media has become an expert in making and distributing exciting, provocative content for the millennial generation. Initially a magazine business, Vice is now a $2.5 billion business reaching 150 million people each month across every conceivable platform in 36 countries. The power of Vice’s content – along with the company’s strong bond with young trendsetters – has been rewarded with investments from A+E Networks, 21st Century Fox and WPP, among others. Vice: We have editorial and video teams in each territory generating ideas and – although they operate James Morris, Global Head of MediaCom Beyond Advertising, gets the answers to these questions and more from Vice’s UK managing director, Matt O’Mara. We intend to be the biggest premium content creator on the planet, so we’ll keep producing formats as long as there are new places to present them. Matt O’Mara [Vice]: Vice is the most relevant media company for young people in the world. We create and distribute content that people genuinely want to consume, and brands can be a big part of that. If you want to reach Gen X/Y and you’re not working with Vice, we need to talk. MediaCom: Shane Smith (Vice CEO) has said that you create content that you yourselves think is cool. But how do 40+-year-old managers interpret “cool” for younger audiences and remain an evolving and iconic brand? 12 BLINK 08 · Systems Thinking Issue Vice: Shane had the foresight to recognize that – in the mid-90s, when the YouTubes and Hulus of this world were building the infrastructure for video distribution – people would eventually crave high-quality content. Our model is pretty simple: make the best content for as many people as we can through as many distribution points as possible. We intend to be the biggest premium content creator on the planet, so we’ll keep producing formats as long as there are new places to present them. So what makes the Vice system so effective and powerful among its target audience? How does it create such engaging content and what can brands learn from its distribution strategy? James Morris [MediaCom]: Matt, tell us your elevator pitch for Vice? VICE News, Ukraine Burning. MediaCom: You’re creating a wide range of content, from “Some Genius in LA is Selling Weed Pizzas” to “'We Are Laying Down Like Dogs: The Long Wait for Ebola Treatment in Liberia”. Can you describe your creative and editorial process for creating content? For example, how do you decide whether the format of a story should be short-form video or written editorial? Vice: Shane is very hands-on and drives a lot of what Vice is. However, he’s the first person to say that what makes Vice great it that the brand is for and by young people. The vast majority of our staff is below the age of 30 and they are incredibly switched-on, smart people. They know first-hand what their generation wants, and it’s not the sanitized view of the world that many media outlets promote. independently – their conclusions are often complementary, and there is crossover in terms of talent. For example, Clive Martin, one of Vice UK’s most celebrated writers, is also a rising star in video. Like any media company, there are editorial meetings and a vetting process for every story. MediaCom: Please tell us how you develop key formats, verticals and channels? Vice: We produce formats that fit a particular medium or content environment. Online, we create a huge variety of programming franchises across the various verticals, and we’re completely unrestricted in terms of length and design. On the other hand, our HBO show is 45 minutes long and is produced in a more standard television format. MediaCom: Investing in high quality content appears to be your single-minded strategy. How has this system evolved, and has it been an intended evolution or something that has happened organically? Where does Vice go from here? MediaCom: You have created new news formats for the younger generation, and challenged the perception that they’re uninterested in current affairs. Can you describe how this came about? Vice: With huge numbers of young people spending less time watching traditional TV and more and more time viewing our documentaries on YouTube, we knew that young people were interested in the world… they were just changing the way they got their information. Vice News is only six months old, but has already become the fastest-growing news channel on YouTube. The reaction to our video dispatches covering Ukraine and the Islamic State, to name just two of many global stories we cover on the ground, have resulted in traditional news outlets taking us very seriously. MediaCom: You have a host of digital channels, from the new “Munchies,” with a focus on food, to “Motherboard” on tech and “Noisey” on music.Why does it make sense to keep them under separate BLINK 08 · Systems Thinking Issue 13 brands or names rather than have them all under Vice? Vice: Vice is a network, and we wanted to create digital destinations around the cultural areas most interesting to young people. “Young people,” though is a very broad category, and to suppose that everyone under, say 30 years old, is into everything would be naïve. That said, Vice.com is essentially the mothership: an aggregation of the very best content from all our verticals. A site re-launch later this year will make this even more apparent. magazine. Coupling this level of distribution with sought-after content makes us hard to beat. MediaCom: Describe your success on YouTube. Vice: We have debunked the myth that content needs to be bite-sized. Audiences are watching our content from beginning to end, even though our shows can be more than 30 minutes long, and millions are subscribing to our YouTube channels. We have debunked the myth that content needs to be bite-sized. MediaCom: Condé Nast says it is spending as much on distribution as content creation. How much does Vice invest to promote its content? Vice: We spend money on content activation, both for ourselves and for our brand partners, but there is less reliance on paid distribution for premium content. Our engagement rates on YouTube, where we have the best ratio of likes vs. dislikes, and Facebook where Vice has 55% higher engagement rates than average, prove that social advocacy is still at the root of what we do. Technology is critical, but – at the end of the day – being creative is still the most important thing we do. MediaCom: Vice isn’t the biggest when measured by views or monthly unique visitors, but the company still engages audiences at a very high valuation.What is unique about your offer to advertisers? Vice: Vice reaches more than 150 million people per month across all platforms. This reflects not only our scale, but also the diversity of our business: a network of 10 online channels, 10 global YouTube channels, multiple linear shows and franchises (like our Emmy Award-winning show on HBO), mobile, a record label, book publishing and, of course, our 14 BLINK 08 · Systems Thinking Issue The engagement rates are off the charts, we have the fastest-growing subscriber channels, and our content has the best ratio of likes to dislikes. This is what we bring that others don’t: truly premium content and real engagement. We help brands shift consumer opinion, which ultimately translates into sales. MediaCom: What do you think about advertiser content at the moment? Vice: Some of it is pretty depressing. Everyone is having a go at it, but it’s tricky to do well and much of it is throwaway, with clients having to pay massive amounts to get it seen. That’s not good for anyone. Clients need to learn that you can explain what your brand is or showcase a product benefit without artificially forcing it into the narrative. MediaCom: What do advertisers need to remember about creating engaging content? Vice: Make your content entertaining, thought-provoking and authentic. Whatever you deliver has to be something audiences love and want to share with others. Clients need to learn that you can explain what your brand is or showcase a product benefit without artificially forcing it into the narrative. VICE News, Ambushed in South Sudan BLINK 08 · Systems Thinking Issue 15 Words: Jon Gittings, Global Business Development Strategy Officer, MediaCom Worldwide FE ATURE SYSTEM GLOSSARY Description Football Communications Purpose What the system is trying to Become #1 in the league by Deliver against the specified achieve. Its function. winning more games than the outcomes, e.g., increase competition. drinking occasions. The players and the coaches. The paid, owned and earned Elements Interconnections Putting Systems Thinking into Communications Practice Systems thinking can feel a bit overwhelming, especially to a newcomer. While we’ve always had systems, and the discipline of systems thinking has been around since the middle of the last century, it isn’t often explicitly applied to the world of communications. It’s there; we just haven’t really spoken about it. For us it’s a new language – a fresh way of looking at the world and a new way of doing things. We’ve learned that the more time you spend with it, the richer and more interesting it becomes. There 16 BLINK 08 · Systems Thinking Issue Changing football’s interconnections can completely change the behavior of a Flows of the system. Often physical, content and channels that but may also be intangible. make up the system. The relationships or The rules of the game, the The relationships between the connections (along with coaches’ instructions and the different content and channels, the structure of those referees’ activities. and any organizing frameworks relationships) that hold or behaviors that determine the elements of the system what those relationships should together. be, e.g., “no dead ends” The measurable elements in The skill of the players and their The equities and assets that the system. An accumulation knowledge of their opponents’ exist within the system: of material or information that skills. intangibles such as brand has built up in a system over perception and tangibles such time. as fan communities. Material or information that A series of injuries that reduces Changes in consumer beliefs leaves or joins a stock over a the ability of players and the and attitudes that influence period of time. team to perform. their perspectives and actions. A new coach with new ideas Changes in the target that improves skills. consumers’ relationship with the system’s content and channels. Feedback Loops Enhancing communications with systems thinking creates value and generates new solutions and opportunities. Let’s look at the world of football and the challenge of childhood obesity to bring it to life. is no doubt that systems thinking provides myriad opportunities to create rewarding and effective solutions to a wide range of problems, both big and small. To help us unlock the wonderful world of systems thinking, we have compiled a glossary of key terms and components. And to bring it to life, we’ve included examples from not only communications, but the world of football as well. Stocks The specialist component parts The mechanism (a rule, an The addition of new players Changes in how the system is information flow or a signal) to help achieve the system's optimized produces changes that allows a change in stock purpose (positive feedback in the interrelationships and to affect a flow in or out of loop). interdependencies of the system. e.g., the introduction that same stock. system. The moment Webb Ellis handled a ball rather than just kicking it – i.e., he changed the relationships between the elements of the system – football (or soccer) started to become rugby (a whole new system). The moment players in the US decided it was better to pass the ball forward the system changed again, eventually becoming American football. This is a good demonstration of why we should always plan for outcomes not inputs: it’s the outcome that truly shapes the system. Not qualifying for the or removal of any given Champion’s League so that content or channel; more or money isn’t available to bring less money in the system; in new players to help qualify higher or lower effective next year (negative feedback frequency targets; loop). use of audience data; adjustments in audience targeting. Leverage Points Moments and places in the The appointment of a new A change in content or system where specific actions coach, or more revenue for channel; a cash injection as will make it more likely that the the players' budget (e.g., via a particularly acute moment system will achieve its purpose. more stadium capacity, more or point in the system; a favorable contract terms with rebalancing of paid, owned, sponsors). earned; a new connections High leverage points create exponential effects in the truth and platform. system; low leverage points create incremental effects. BLINK 08 · Systems Thinking Issue 17 SOCIAL PSYCHOLOGY BODY IMAGE FOOD ECONOMICS PEER PRESSURE SOCIAL ACCEPTABILITY OF FATNESS SELF ESTEEM PASSIVE MEDIA CONSUMPTION FOOD ADVERTISING OFFLINE VIDEO INDIVIDUAL PSYCHOLOGY TV WATCHING FOOD LITERACY OOH SOCIAL OUTREACH ONLINE VIDEO SOCIAL INTERACTION STRESS INDIVIDUALISM USE OF MEDICINES SOCIAL REPONSE INDIVIDUAL ACTIVITY RETARGETING NEWSPRINT DEMAND FOR HEALTH NUTRITIONAL QUALITY FEMALE EMPLOYMENT COST OF INGREDIENTS DEMAND FOR CONVENIENCE FOODS MARKET PRICING ENERGY ENERGY IN ENERGY AVAILABLE ENERGY OUT SOCIOCULTURAL VALUE PARENTING MODEL FUNCTIONAL FITNESS LEVEL OF TRANSPORT ACTIVITY RECREATIONAL ACTIVITY OCCUPATIONAL ACTIVITY SEO WEBSITE BLOGS & FORUMS AUDIO SMS FOOD CONSUMPTION TENDENCY TO GRAZE SOCIAL PRESSURE TO CONSUME AVAILABILITY OF CONVENIENCE FOODS PORTION SIZE DESIRE TO MAXIMIZE VOLUME ACTIVITY ENVIRONMENT BALANCE INDIVIDUAL PHYSIOLOGY LEVEL OF SATIETY RATE OF EATING LEVEL OF THERMOGENICS LEVEL OF FAT FREE MASS BRICKS & MORTAR PHYSIOLOGY RESTING METABOLIC HEARTRATE RELIANCE ON SURGICAL INTERVENTION GENETIC PREDISPOSITION PREDISPOSITION TO ACTIVITY DEGREE OF APPETITE CONTROL RELIANCE ON PHARMA REMEDIES LEVEL OF EMBRYONIC CARE BREASTFEEDING CULTURE A systems case study: Tackling obesity right balance of energy within people (energy in vs. energy out). Systems stories are abundant and fascinating, from parachuting cats (Google it) to elephants and Persian poets. But as content and connections people, we are ultimately in the business of behavior or perception change. Mapped around the purpose are all the elements of the obesity system, clustered by the main macro forces that shape it. To dig a bit deeper into how we can apply systems thinking, consider the possibility of reversing the rise of childhood obesity. The thorny problem of obesity (and the prospect of creating behavior change to reverse it) is a rich and highly engaging template for thinking about systems, how they work and how they can help us solve problems. If we can understand and apply systems thinking to obesity, it will be easier to apply our learning to similar or even simpler problems. Within the system, positive relationships between elements and outcome (as well as between elements and elements) are indicated by a straight line, and negative relationships by a dotted line. To make reading easier, only food economics and food consumption are shown here. Above is a high-level look at an obesity system. Also within the system are elements that we can and cannot influence through communications. For example, within “Physiology” we could create a campaign promoting optimum breastfeeding behaviors, but we can’t influence genetic predisposition. Within “Individual Activity” we could encourage people to be more active, but we can’t significantly make their jobs more active. At the center is the desired outcome, or the purpose of the system: create the Of the elements we can influence, some can be directly targeted; 18 BLINK 08 · Systems Thinking Issue SEDENTARY EMPLOYMENT ACCESS TO OPPURTUNITIES COST OF PHYSICAL ACTIVITY RELIANCE ON LABOR SAVING DEVICES UNMOTORIZED TRANSPORT OPPURTUNITY PERCEIVED DANGER communicating to consumers about portion size, for example. Others would need to be indirectly, such as initiatives encouraging food producers to reduce salt and sugar levels. It’s also clear that some elements – either because they are highly connected to others (e.g., nutritional quality) or have a high long-term impact (e.g., breastfeeding culture) – should be prioritized over others. For example, drastically altering the demand for convenience foods would be too costly and difficult to change. So what do we do with this high-level system? First and foremost, we should think about it as a non-linear journey. Contained in the system are component elements that all work together on the path to reversing obesity trends. A simple way of translating this journey into communications is to quantify the importance of the different elements and convert them into a series of programs or campaigns that will take place within a specific timeframe. STREET COMMITMENT TO CHANGE EVENTS CRM PERCEPTION CHANGE SIGN UPS For example: • “Level of Unmotorized Transport Activity” becomes a social and experiential program that motivates children to become more active (walk vs. ride to school) • All of the “Food Consumption” elements combine in media partnerships that use celebrities and content to urge families to eat better (e.g., Jamie Oliver’s quest) • “Recreational Activity” becomes a media partnership designed to get families to move more (e.g., Dancing with the Stars) • “Social Acceptability of Fatness” becomes a campaign that brings together a coalition of heart, liver and diabetes charities to make the longterm consequences of obesity feel more urgent and relevant • “TV Watching” and “Food Literacy” become a children’s TV channel creating a bespoke spin-off educational content program (e.g., Nicktrition). These are just a few examples of possible communication elements within the obesity system, all connected to an overall anti-obesity purpose. Some elements deliver direct effects, some have indirect impact, while others drive short-term or long-term change. Most importantly, all parts of the system are connected and designed to be delivered harmoniously. In the UK, this overarching connectivity is delivered by one main brand platform run by the National Health Service, called Change4Life (http://www.nhs.uk/ change4life). At a more detailed level, of course, each of these campaigns/ programs/partnerships operates as its own content and connections system. The example above is representative of a campaign from a coalition of charities whose areas of specialty are dramatically impacted by obesity: heart disease, liver disease, cancer and diabetes. While the purpose of the high-level system is to restore “Energy Balance,” the function of this particular system is to heighten urgency around the obesity epidemic and its shocking impact on health and life span. Another goal is to generate “sign ups” for a healthier living program that enables people to commit to changing their behavior. Ultimately, then, the obesity system is not just one but many interconnected systems. Each has a specific function, whether it be getting kids to walk to school or persuading food manufacturers to put nutrition labels on their products. In the end, though, all of them line up to deliver one macro purpose: restoring energy balance. The fight against obesity isn’t even close to being won, but – now that it is being tackled in a systemic way – there are signs of improvement. Federal health authorities in the US, for example, recently reported a 43% drop in the obesity rate over the past decade among children 2-5 years old. This is the first evidence of a broad decline in obesity in the US and, hopefully, a strong indicator of a positive future not just in America, but around the world. By creating and monitoring a communications system with the same level of rigor, we can ensure that each component has a carefully-defined role in reaching the stated purpose and that all elements are working perfectly together. BLINK 08 · Systems Thinking Issue 19 Words: Stephen Mader, Digital Retail Insights Director, Kantar Retail Illustration: Dan Matutina POV Steps to Successful Omnichannel Retailing the interaction between shopper and retail outlet, thereby turning shopping impulse into action or improving loyalty via enhanced customer experience. Delivering an omnichannel experience means identifying key decision points along the purchase path, and being ruthless about removing friction to motivate purchase. There will always be buzzwords to describe the future, and nothing is more jargon-laden than the future of retail. Let’s take a look at one of these buzzwords, “omnichannel”, which should not be used interchangeably with multichannel. Omnichannel means delivering a perfectly seamless brand experience across all touch points that the consumer uses to engage with your brand. Simply put, it’s a shopper-centric view of the world. Sounds great, but this shopper-centric view cannot be realized without relying on smart retail partners that can execute well across all channels – proper multichannel is execution-led and process-driven…and this is where the omnichannel experience often fails. Getting it right Two brands currently delivering an omnichannel experience are clothing retailers Bonobos and Me and the Met. 20 BLINK 08 · Systems Thinking Issue US-based Bonobos recently moved from being a pure-play online men’s fashion retailer to opening physical shops in New York and Boston. Shoppers make appointments at these “guide shops,” which carry the company’s full range of styles, sizes and colors. Bonobos identifies shoppers through a CRM system that is accessed by in-store employees via iPads. Once consumers make a product selection, the staff orders the items for free twoday delivery. Me and the Met, an online fashion shop based in Denmark, offers a try-on-athome-while-the-courier-waits service in Copenhagen. A courier delivers ordered items within an hour, and customers try the items on while the courier waits. Shoppers can send back the clothes that don’t fit or look good. That’s convenience at its best. Both these examples show what can be accomplished by new players with a ground-up approach to execution. Strong backend IT systems and unique economics allow for shopper-first operating models. For established retailers, however – those that must balance quarterly reporting with the organizational shifts required to satisfy this future shopper – a more iterative approach is necessary. There are many small, incremental steps that can take friction out of the retail system and help transfom a business to be more agile. Such steps will be different for every brand, but all will touch on four key areas: technology, delivery logistics, CRM and more integrated media planning. Using technology and mobile For many brands, technology means using mobile devices to speed up A good example is Walgreens’ mobile app, which allows customers to scan a pill bottle to order a refill for pick-up at a local branch. App users can also send photos from a child’s birthday party or school play to the store closest to grandparents (whether that’s 30 or 3,000 miles away). The app is popular because Walgreens first identified the primary reasons that people go into their stores, and then built the app around these drivers. Harris + Hoole, the UK coffee retailer backed by Tesco, has an app that speeds up the purchase process. Once an individual “checks in” to the coffee shop, the cashier can view the customer’s profile, photo, loyalty data and regular order. This allows employees to address customers by name and take payments via a precharged account. The urge to find new ways to leverage technology is sending brands to trade shows like CES in the US and Mobile World Congress in Barcelona, and forward-looking firms like Unilever have run hackathons to create innovative ways to connect shoppers to brands. Big differences with logistics The second area where little changes are making a big difference is in logistics. For many consumers, convenience has moved from being able to take purchases with them from the store to having items delivered in a one-hour slot the next day. As a result, retailers are becoming very aggressive in developing new solutions. Consider Amazon as a prime example. Amazon offers same-day delivery in twenty US cities, and is partnering with Royal Mail to do the same in the UK. The company has started Sunday delivery in Milan and is expanding Amazon Locker, a self-service parcel delivery system, throughout the US and UK. During the past three years, Amazon has doubled its fulfillment capacity as it tries to close the distance between the sale and its shoppers as quickly as possible. The UK supermarket chain Waitrose offers a “click and collect” service for free, but customers can spend more to have groceries delivered to a locker or by courier during a one-hour window. Needless to say, shoppers want as many fulfillment options as possible, and many retailers are counting on their willingness to pay more for the added convenience. Loyalty schemes and CRM Another way to drive omnichannel success is through investments in CRM and loyalty programs, and there’s an opportunity to open up (and personalize) these loyalty schemes. Taking a page from the video gaming community, retailers are gamifying their loyalty schemes by allowing users to “win” vouchers and money-off coupons. “Players” can also see how far they are from their next voucher or reward tier, which motivates additional spending. US-based Meijer, for example, creates transparency around its supermarket rewards program by showing consumers who shop in the baby and beauty categories how close they are to receiving the next awards voucher (and who doesn’t want that next precious baby product or lipstick?). Integrated media and operations planning Finally, in a world where a brand’s largest commercial partners are also quickly becoming massive media platforms, brands must change the way they align operating functions across digital marketing and commercial teams. Amazon, Google and Alibaba are all trying to control the customer journey, starting at search and continuing through fulfillment. The first stop for many US and Western European shoppers researching potential purchases is Amazon, but brands need to be sure they are tending to all their partner relationships as sources of not only additional shopping revenue, but for added brand equity, as well. BLINK 08 · Systems Thinking Issue 21 Foto: Sebastian Gabsch www.sega-foto.de Words: Sven Wollner, Managing Partner & Director of Freshness, MediaCom Germany M:FILE S Three Valuable Insights from TED Hoping to be inspired? Attend a TED or TEDx event. Here are three insights into how the achievements of some of the world’s most remarkable people can help advertisers. The common theme behind the stories of most TED speakers is their ability to turn information first into insights and then into transformative behaviors. Similarly, agencies and advertisers need to create and foster an active path from a consumer’s interest in a brand through to purchase and advocacy. In order to do so, we need to cross the borders of traditional dialogue and communication, think around a few corners and build on creative thoughts. Three recent TEDx events in Germany offer fascinating examples of how speakers in a variety of fields have done just that (and if they can do it, why can’t we?). Dutch product developer Bart Weetjens was fascinated by the continent of Africa. He also happened to have a seemingly unrelated passion for rodents. He found a way to marry the two by thinking about the thousands of people who still die every year from landmines in Mozambique… and wondering if he could train rats to sniff out these hidden bombs. A fascinating side benefit was that these practiced rats could also sniff out tuberculosis Laurence Kemball-Cook @ TEDx Berlin "Future 3.0" at an early stage in hospital patients, allowing them to get treatment before the disease advanced too far. more accessible, and has the potential to make cities more sustainable. Observation #1: Don’t stop looking for an answer. Think in broad “what ifs”. An expected solution can sometimes turn a "good" into a "wow". Observation #2: Sometimes the solution lies directly at your feet and communities want to get involved in socially important initiatives. This is a great blueprint for thinking about social movements, which can also be directly translated to and used in brand communications. Laurence Kemball-Cook, an industrial design engineer, was determined to create an off-grid kinetic power source. Recognizing that millions of people around the world take billions of steps every day, he developed a paving tile made of recycled car tires that converts the kinetic energy of footsteps into electrical power. Such “footfall harvesting” can leverage 10,000 people in a football stadium to power a city of 20,000 inhabitants during a single soccer match. MediaCom's global client Shell partnered with Kemball-Cook to create the first-ever peoplepowered football pitch, opened in Rio de Janeiro just last month by international football legend Pelé. The “Pavegen” project has made power Daniel Kraft is a trained physician-scientist, inventor, entrepreneur and innovator. He believes that combining technology and communication can foster a radical change in the way we deal with illnesses, preventive care and the call to action coming from our bodies when something is wrong. In his 2014 TED Talk, Daniel spoke of a future wave of products, including diagnostic apps and “wearables”, that will empower us to act in real time when it comes to our health. As a result, we won’t need to rely solely on our doctors to live healthier lifestyles, and society can gain new insights into a wide range of medical issues. Personal responsibility will make way for a personal optimization process. Kraft believes that if humanity were to share its health data in a cloud, we would be one step closer to a healthier world. Observation #3: Whether it’s Uber instead of taxis, Airbnb in place of hotels or data transfers via wearables instead of doctor visits, being connected to our community in new and innovative ways is more relevant than ever. Our task, then, is to pave the way from thought to positive action, while balancing the benefits of information sharing with the need to protect personal privacy. Brands and businesses that take on this delicate responsibility will create added value both for themselves and for consumers. Ultimately, the most respected and highly-regarded marketers help facilitate easy, rewarding and lasting relationships between their brands and consumers. Visit ted.com or TEDxBerlin.de for more Insights. 22 BLINK 08 · Systems Thinking Issue BLINK 08 · Systems Thinking Issue 23 Words: Neil Redding, Senior Partner, Senior Director of Innovation, MediaCom USA Illustration: Sam Learmonth FE ATURE Wearing our Hearts on our Sleeves three new factors that contribute to your companion’s experience. Then think about how to optimize these factors so that you create conditions for maximum enjoyment and value during your time together. For starters, try to read as much body language as you can and respond in ways that generate measurable results. Is your companion happier and more relaxed when you are talking about your workplace, or less so? Have fun with this exercise, which will not only improve the way you work, but also deepen your human relationships and increase your conversational prowess. How new systems will make intimacy scalable. We’re on the cusp of a revolution in computing as big as the Web, the personal computer and social networking. Maybe bigger. This revolution will be driven by wearable technology, but the reason it will be revolutionary is that it will redefine something that has always been at the heart of being human. That something is conversation. And since successful markets and marketing are conversations, this revolution will radically change what marketers and their agencies do and how we do it. Content + Connections = Conversation For nearly our entire existence as a species, most conversation has happened between people in the same physical space. Before there was spoken language, conversation consisted of body language – the gestures, facial expressions and stances that make conversation richer, more natural and more effective. Those of us who delivered these skills, and paid 24 BLINK 08 · Systems Thinking Issue attention to them in others, have always had an advantage. The problem is that, for some time now, we’ve traded away this knowledge in favor of communications systems built on reach. From the time we first discovered amplification – via public squares and cathedrals, then microphones and public address systems, then via radio and TV – we’ve allowed our attentiveness to personal communication to be drowned out by the power of scale. In the social media era, this applies not just to orators, broadcasters and advertisers, but to those of us who, obsessed with our phones and gadgets, prioritize our at-scale digital presence over the people physically surrounding us and the environments we inhabit. It's a numbers game, we say. But of course, our maneuverings bear little resemblance to conversation, since almost no one is listening. What if we could actually combine the power of scale with the effectiveness of holistic, full-featured human interaction? This is the ultimate promise of wearable technology: to replicate our instinctive, expressive behaviors at scale and at a distance, and – beyond this – to bring previously inaccessible personal states and modes of expression into the conversation. What if I know that your energy level is low and that you've been sitting for three hours straight when I approach you to chat? How would that change what I say and how I say it? What if I know your heart is racing? That you've spent the last several evenings on your own? That you’re in a car stuck in traffic? That you’ve just completed the longest run of your life? That you’ve caught the flu and aren’t showing symptoms yet? Or simply that you’re sad or happy? If you’re finding it difficult to believe that we’d willingly share such intimate personal states, consider this: passive sharing of your music preferences, how hard you exercised this morning, how many steps you took yesterday, and where you started and ended are all currently being shared by large contingents of Internet users, despite our initial resistance. The first Apple Watch, after all, is about to turn heart rate and stairs climbed into mainstream metrics. There is no doubt that the surfacing and sharing of additional intimate signals will be similarly thrilling and scary, with the thrill (or just weary acceptance) ultimately winning out. Leaning In There are certainly challenges ahead for brands that want in on this conversation. Unlike humans, brands have found it difficult to develop a coherent and complete picture of the actual person with whom they are trying to connect. In the case of retargeting, for example, we don’t yet understand whether our target has already purchased what’s being presented or is in a different part of the customer journey (where our message is less relevant). And even as we start to stitch together a view of each individual, we must still capture aspects of the conversation in algorithms so that we can achieve scale. From Here to There While these are early days, there is work we can do now to help make these atscale conversations a reality. Number one on this list is transitioning to systems thinking in every area of our work (and even our own personal) lives. That may sound excessive, but it’s really just about paying more attention to everything that makes up the experiences we have with other people. Try it out. The next time you’re having coffee or dinner with someone, challenge yourself to consider The Tipping Point Will there be a clear tipping point with wearable conversational technology, the way Facebook was for social networks and the iPhone was for smartphones? If these examples are any indication, the tipping point will come when adoption reaches sufficient scale, and this only happens when a “killer app” comes along: some product or service that’s irresistible to a massive number of people. We don’t seem to be there yet. Still, we can see how all the pieces will ultimately be integrated into new, more personal communication systems in the near future. When that happens, brands will have the opportunity to enjoy richer, more personally meaningful conversations with every willing participant. Who knows? Maybe we’ll see a world in which interruptive advertising is a thing of the past. After all – when we know when someone is open and receptive to our message – why would we waste our time and money on someone who isn’t? BLINK 08 · Systems Thinking Issue 25 Words: Nick Palmer, Head of Content Strategy, MediaCom Beyond Advertising EMEA Illustration: Martin Nicolausson / NU Agency FE ATURE Content, Connections & Millennials Millennials get a huge amount of their information from newsfeeds, which suits their extremely finite attention spans. This requires a fundamentally different approach to communications planning. Brands need three kinds of content to appeals to the millennial mind-set at any given point in time, and effective distribution strategies to ensure that content is seen. Eight seconds. That’s what research1 suggests is the average human attention span. It’s also one second less than the average attention span of a goldfish. While goldfish have always been known for their paucity of concentration, human attention has been compromised by a number of factors, including always-on social platforms, a proliferation of screens and the broader availability of Wi-Fi and 3G/4G access. Nowhere is this attention deficit more acutely felt than with millennials, the primary adopters of technology and the media platforms that have accelerated these changes. Millennials are also the most marketed-to and message-savvy generation on earth. It’s convenient media shorthand to describe millennials as hard to reach, but what this actually means is that previous approaches didn’t work. What we need is a fundamental 26 BLINK 08 · Systems Thinking Issue rethinking of our approach to communications planning. First, we need to recognize that the mobile screen is paramount to this audience. Checking smartphones before going to bed and first thing in the morning – and hundreds of times in-between – is the norm: in fact, four out of five smartphone users check their phones within 15 minutes of waking up2, and typical mobile users check their phones more than 150 times per day3. Next, we have to understand what millennials are consuming on this screen. Yes, we have phone calls and messaging services (and these account for a portion of mobile usage) but, for the most part, smartphones are used for social networking applications. To illustrate this, just look at the number of daily Facebook users on mobile: at last count, up to 556 million (or 73% of the 757 million active daily Facebook users)4. The words “social” and “mobile” have become inexorably intertwined. As such, understanding how to engage millennials means understanding social media. The easiest way to describe social media in 2014 is as a carefully curated and distributed online list of the individuals and media most influential to the user. Consider your own newsfeeds for a moment; aren’t they crafted to serve up the stories most important to you from the voices you trust the most? Becoming embedded in these lists is difficult for brands, and not just because of the aforementioned human attention span deficit. The problem is also one of competition. Brands are no longer vying for people’s attention during a four-minute television ad break; in the BLINK 08 · Systems Thinking Issue 27 newsfeed, they are competing against the latest music releases, breaking news and celebrity scandals. In other words, we’re competing against culture itself for our audience’s limited attention. This means we need to start planning campaigns with the newsfeed in mind updates from friends, etc. As a result, what is delivered needs to be great, not just good. "Inspire" content must speak to an audience’s passion points and, at the same time, reinforce brand equity. Striking this delicate balance is often very difficult for brands, and the reality What we need is a fundamental rethinking of our approach to communications planning. – developing content that is the most appropriate for the audience at any given point in time, with a distribution strategy that ensures such content gets seen (often focused on paid media). As an aside, note that this is not about disruption; it’s about creating content that people choose to consume. As a starting point, brands and their agencies need to understand a consumer’s state of mind when encountering online content. “Inspire” content The first and most common mind-set is “grazing.” This refers to a consumer turning to a screen for entertainment. The opportunity here is for brands to create “inspire” content designed to grab people’s attention. "Inspire" content competes with celebrity stories, breaking news, 28 BLINK 08 · Systems Thinking Issue is that such polished content may come with a high cost. The millennial audience, more so than any other, can sense contrived stories from a mile away. This requires brands to maintain a tightrope act balancing authenticity with an honest and relevant brand message. Being ignored by millennials is bad. Being ridiculed is worse. “Involve” content To satisfy the grazing mind-set while consumers surf always-on platforms, we need “involve” content to complement “inspire” campaigns. It’s “involve” content that will deliver effective frequency around a campaign message or theme (because in an “opt in” content world, the old rules of reach and frequency will no longer work; rarely will someone opt to watch the same the brand story? While the “voice of the brand” is one alternative, the voices of bloggers, vloggers, millennial celebrities or go-to media may be more impactful. Who better to tell a story about headphones than a technology blogger? Who better to develop content for YouTube than a vlogger who has grown her reputation on the platform? These individuals and outlets have organic followings… and they already have a place on the millennial newsfeed. piece of branded content twice). This is not about producing new original content at a huge cost – instead, it’s about developing numerous iterations, formats and facets to a story during “inspire” content. Photos, GIFs, teaser video, infographics… all of these can work to draw a consumer more deeply into an “inspire” story. As with “inspire” content, paid distribution here is critical. A great idea deserves a great audience and the only way to deliver this, at least to start, is via paid media. The long-term goal is to become synonymous with the development of great content and own an audience by having them subscribe to what you create. for information on great sound. This may seem obvious, but the truth is that very few brands are taking advantage of producing content that clearly demonstrates their expertise. “Inform” content Millennials have a unique ability to self-teach, primarily by viewing videos on YouTube and elsewhere. This suggests another opportunity for branded content: to be informative. For many brands, there is a huge untapped opportunity to create content that answers consumers’ questions. Brands and their agencies need to understand a consumer’s state of mind when encountering online content. The key is determining what a brand has the “right” (i.e., the expertise) to expound on and explain. And, of course, it helps if consumers are actively looking for this information. For example, a camera brand has the right to be the first search result when someone is seeking advice on how to take great pictures. A headphone brand could be the first logical result when someone is looking trends. One of the most recent involves millennials screen grabbing tweets and posting them as images. Ultimately, the key message is that there is no one-sizefits-all solution. Adapting the message to its surroundings is an absolute necessity. Creative style Mind-set, however, is not the only factor to take into account when developing content that earns its place in the newsfeed. Brands also have to fit in with the creative norms of the platform they are targeting. Want to stand out on Tumblr? Use more GIFs, or look at the latest user-generated Narration The final area regards narration. What is the most effective mouthpiece to tell The best approach may be to blend the voice of the brand with these other voices: carefully creating and curating content to develop a “body of work” that effectively tells the brand story. Ultimately, brands need an integrated content and distribution strategy that acknowledges the shift in millennial platform preferences and consumption habits. Such a strategy must also acknowledge the different consumer content mind-sets and adhere to the norms associated with different platforms. Such a strategy will provide brands with the opportunity to earn a place on the newsfeed via the three types of content (inspire, involve, inform) with which the target chooses to engage on an always-on basis. And it will enable brands to effectively reach and engage millennials. Getting it right Just remember that getting it right for millennials is only the first step. Right behind them comes the newest consumers – Generation Z. Born in the 21st century, this is a generation that “swipes” flat screen televisions, expecting them to behave like tablets and iPhones. Gen Z’s media consumption habits are likely to be even more radically different. This will lead to new and exciting brand challenges as we all seek to attract these consumers. References: 1. http://www.statisticbrain.com/attention- span-statistics/ 2. https://fb-public.app.box.com/ s/3iq5x6uwnqtq7ki4q8wk 3. http://www.slideshare.net/kleinerperkins/ kpcb-internet-trends-2013 4. http://venturebeat.com/2014/01/29/face books-mobile-moment-nearly-a-billion- mobile-users-majority-of-revenue-from- mobile/ BLINK 08 · Systems Thinking Issue 29 Words: Cameron D. Norman PhD MDes, Principal, CENSE Research + Design, Senior Researcher, Ivey International Centre for Health Innovation, Ivey Business School, Western University. Illustration: Sam Island FE ATURE Understanding Systems, Designing Behavior Change When you understand a system, you will be able to transform it, explains expert on systems thinking, Cameron D. Norman. This also applies to human systems that are rarely straightforward and predictable. Social psychologist Kurt Lewin once said, “There is nothing so practical as a good theory.” It is certainly true that theories help explain why we do things and shape the way we envision behavior change. A look at the literature on behavior change reveals thousands of case studies and experiments on motivation, persuasion and the art of the “nudge”, reflecting the science of how individuals change. But for brands hoping to drive behavior change at scale, systems thinking provides a more potent set of not only theories, but also models and tools that help us understand how collective human behavior is shaped by what’s happening around it. That’s because our individual actions are, to some degree, guided and constrained by the systems in which 30 BLINK 08 · Systems Thinking Issue we find ourselves embedded. Such systems might involve job roles and organizational structures, social norms, technological interfaces and physical architecture. to contemplate the relationships and structures that shape behavior and experiences within a system. Only then can we design ways to truly make them more useful. So if one wishes to motivate change, the best way to see the power of systems at play is to change one key aspect of that otherwise-stable environment. Take the modern school classroom. What happens if you remove desks and straight-back chairs and replace them with beanbag chairs? Or just sit on the floor? Or have the instructor sit on the floor? Achieving purpose Every system has a purpose, and the first step in systems thinking is uncovering what that purpose is. Sometimes the purpose is unclear, or there may be more than one. What we know for sure is that knowing what a system is all about is key to understanding what happens within it. One way to uncover and articulate purpose is to have people visualize their systems. What’s included and emphasized in the visualization (and the relationships that are represented) is instructive and can offer insight into the many ways systems are experienced. Systems are neither “good” nor “bad” Regardless of motivation, skills and abilities, these changes will influence the collective experience in ways that could be profound or subtle, irrespective of a student’s motivation to learn. The change itself produces a change. Systems thinking allows us – they are just more or less likely to achieve their purpose. Visualizing a system highlights another key systems concept: boundaries. Boundaries define a system’s limits, along with the space in which human activity takes shape and new behaviors emerge. To draw on our classroom example, the boundaries might include questions about who gets to be in that classroom (and who doesn’t). Where does learning take place? What roles determine how people interact with one another? For example, school janitors use the classroom when cleaning and maintaining it, but do they influence the experience of student learning enough to include them in the system? Probably not. Designing systems through emergence As one would expect, human systems are rarely straightforward and predictable, and all complex systems have numerous channels of information and activity interacting at multiple levels, with competing demands in a specific context. Our families, workplaces and marketplaces often reflect these qualities but while we can’t control complex systems, we can influence them. Dinner parties provide great examples of complexity in action. We may have no precise idea what will happen at a particular party, but we can create the conditions through which people are more likely to enjoy themselves. We might conclude that food and drink is important, and that a space conducive to conversation would make sense. But what about the exact mix of food (spicy? vegetarian? small bites?), space (patio? pub? ballroom?) and people (co-workers? family? strangers?) will produce is uncertain. These elements are all called attractors, or artifacts in the system that stimulate activity that organizes behavior. Good hosts pay attention to these attractors and modulate them (adding more food, turning down the music) in a way that makes for good parties. The same approach can be taken with any system. By mapping it out, determining its purpose, setting the boundaries and stimulating positive attractors, you’ll begin to transform it. This is true whether they are lessons learned in a classroom, conversations at a dinner party or product choices in the marketplace. BLINK 08 · Systems Thinking Issue 31 This excerpt is from Thinking in Systems: A Primer by Donella H. Meadows INTERLUDE The Blind Men and the Matter of the Elephant Beyond Ghor, there was a city. All its inhabitants were blind. A king with his entourage arrived nearby; he brought his army and camped in the desert. He had a mighty elephant, which he used to increase the people’s awe. The populace became anxious to see the elephant, and some sightless from among this blind community ran like fools to find it. As they did not even know the form or shape of the elephant, they groped sightlessly, gathering information by touching some part of it. Each thought that he knew something, because he could feel a part. . . . The man whose hand had reached an ear. . . said: “It is a large, rough thing, wide and broad, like a rug.” And the one who had felt the trunk said: “I have the real facts about it. It is like a straight and hollow pipe, awful and destructive.” 32 BLINK 08 · Systems Thinking Issue The one who had felt its feet and legs said: “It is mighty and firm, like a pillar.” Each thought that he knew something, because he could feel a part. Each had felt one part out of many. Each had perceived it wrongly. . . .1 This ancient Sufi story was told to teach a simple lesson but one that we often ignore: The behavior of a system cannot be known just by knowing the elements of which the system is made. 1 Idries Shah, Tales of the Dervishes (New York: E. P. Dutton, 1970), 25. Reprinted here with the permission of Chelsea Green Publishing. For more information, visit www.chelseagreen.com BLINK 08 · Systems Thinking Issue 33 Q&A with Chris Hayek,Director of Global Brand Marketing for Shell Lubricants Illustration: Chris Kuzma Q&A 5 Questions for Marketing Leader Chris Hayek Since joining Pennzoil-Quaker State in 1999, Chris Hayek has risen through the ranks. Today, he is Director of Global Brand Marketing for Shell Lubricants, responsible for the entire consumer value proposition for Pennzoil, Quaker State and Formula Shell, which includes taking calculated risks and driving innovation. Just this year, Chris collaborated with MediaCom to produce “Breaking Barriers,” an award-winning full-length documentary that premiered this past summer in a programming (not advertising) block on the National Geographic Channel. 1. Where do you look for inspiration as to what’s next for your customers and your business? As a motor oil company, we are generally in a low-involvement, low-frequency category; people only think about motor oil right before they get it changed and right after. In between, we are relatively invisible to the consumer. This means that loyalty and relevance at the moment of purchase are key. For this reason, I tend to study consumer brands like Red Bull, Nike or BMW, where shoppers and buyers have a clear passion for the product. Service can also be a differentiator in the “Do It For Me” side of our business, so we think a lot about the Disney experience and how can we tailor our service to be more “Disney like”. 34 BLINK 08 · Systems Thinking Issue 2. How are you leveraging content and data to engineer the success of your marketing programs? Data and content bring you two things: immediacy of information on whether a campaign is working, and the ability to change content in reaction to the data. In the past, we looked at data as a point in time that was just about how communication was absorbed by the consumer: do they remember (awareness), did the message make an impact (consideration), etc. Today, we go well beyond traditional metrics into social measures, such as: did they like it enough to share it with others, are they amplifying a brand’s efforts via recommendation, will they push others to interact with your brand. We know that recommendation by family and friends has a huge impact, so we can now look at data such as likes or, more importantly, shareability and time viewed. In other words, we’re able to go much deeper into whether the message is actually resonating with the consumer. 3. How are you listening to and prioritizing your customers within your communications system? MediaCom provides some great social listening tools for us to understand how effective our messaging is within our larger brand ecosystem. For a brand like Pennzoil, we have to balance breadth and depth. Because we are the #1 brand in our category and want to stay there, we look for ways that we can carry the message through reach. Like many companies, though, our sweet spot is driven by a small number of knowledgeable heavy users, so some of our listening and communications target this base of influencers, with an eye toward getting them to recommend our products to others. 4. How do you ensure integration and collaboration between marketing disciplines and specialists within your organization? With new content and channel opportunities popping up all the time, a relatively small organization like ours is almost always stretched, and even specialists have to work hard to keep up. The right level of integration across the company is the hardest part of the brand planning process. And with so many specialties and sub-specialties, in fact, we have to remain vigilant to ensure that individual KPIs aren’t drilled down so deep that we lose the connective tissue of the brands. For us, the brand manager is responsible for making sure that plans are optimally connected at the highest level and that the connective tissue remains vibrant. Our agency partners play a key role here as well, and we use a lead strategic agency to work hand and hand with the brand manager. 5. What does our marketing future look like? What organizational changes do you believe the industry must make to succeed? The hardest challenge that I see both today and in the future is that messaging to and between consumers is “always on.” No matter where a consumer is or what he’s doing, some sort of company message is there. As we go forward, we are beginning to think of share of voice not only vs. our own competition, but also in terms of all the content with which a consumer interacts. For us, consumers are making choices long before they get into the store, so it is not just about the “Zero Moment of Truth” in front of the shelf; it’s also about the “Negative Moment of Truth” when the consumer is about to pull out of his driveway on the way to the store or station. Has he already decided to buy Pennzoil, or not? While we’ve stayed very focused on the in-store experience, which is important, we’ve also had to expand our efforts across the entire purchase cycle, from trigger to purchase to experience and back to (re)trigger again. How do we drive more loyalty when consumers have so many options? One of the answers is to optimize your agency structure, as it’s no longer the case that just one agency does media planning, for example, while another is doing only creative. Social, content and programmatic, in particular, have created a lot of overlap. As companies reshape their marketing departments, so too will agencies be restacking their offerings in order to maximize revenue. Together, brands and their external partners will have to work hard to rationalize this joint system in order to ensure that advertisers are getting the best possible output for the dollars invested. BLINK 08 · Systems Thinking Issue 35 Words: Rob Stevens, Strategy Director, MediaCom Worldwide FE ATURE Systems Thinking: A World in which an Audit is a Good Thing Systems are complex, but systems thinking doesn’t have to be. MediaCom’s Connected System Audit is an elegant tool that makes applying systems thinking to brands simple and accessible, says Rob Stevens, Strategy Director. We’ve discussed the importance of the elements, interconnections, flows and feedback loops that make up your marketing communications system, but have we armed you with the tools you need to really understand them and take action? Allow me to introduce you to the Connected System Audit (CSA). When MediaCom developed the CSA our thinking was that marketing is already hard enough; how could we clarify the systems thinking process rather than add layers of complexity? The answer, we believe, is the CSA, which breaks the system down into its basic components: not by individual media silos, but by the system’s core principles and the elements that make up its DNA. The CSA provides a holistic assessment of a brand’s communications system and identifies any gaps across paid, 36 BLINK 08 · Systems Thinking Issue owned and earned media across in four key areas: Channel How media is selected and utilized to reach audiences and deliver against objectives Content What and how messaging is produced and deployed across the system Connection How system components are linked together to guide consumers toward intended destinations Consistency How consistently communications are delivered across the system and over time The CSA was developed specifically to assess how well a brand’s communications system is functioning and where the most significant opportunities for improvement lie. It involves scoring system performance against a series of questions, each of which correspond to a colored “wedge” on the CSA wheel. The result is a highly visual summary of system performance that provides a framework able to quickly highlight areas of weakness and identify areas for improvement. Did you read how you can put Systems Thinking into Communications Practice? If not, please go to p. 16. If you want to make sure that your metrics are accurately assessing all channels, please go to p. 42. To give you an idea of how we build a CSA, here are 12 broad level areas of interest we explore when working with a client: Channel Mix 1. Is the channel mix effectively reaching the target audience and delivering against the client’s business goals? Channel Selection 2. Is the station/title/site selection within the channel mix appropriate? Mobile Strategy 3. Is there an effective use of mobile touchpoints? Consumer Engagement 4. Is the content engaging and relevant for the target audience? Content Accessibility 5. Is the content seeded and promoted in a way that ensures it will reach its target? Links and Destinations 8. Do all touchpoints link logically to facilitate the consumer journey? Social Connections 9. Are the right social channels being used and do they connect effectively with consumers? Single Minded 10.Are all on- and offline touchpoints working toward an overall strategic goal? Always On 11.Do the touchpoints sustain a continuous brand presence across paid, owned and earned channels? Campaign Commitment 12.Do the touchpoints maintain a long-term campaign message or do they frequently change direction? Platform and Touchpoint Relevance 6. Is the content being effectively adapted across touchpoints, platforms and screens? When we conduct the full and complete CSA evaluation for a brand, we actually adopt a deeper forensic methodology that enables us to audit every single element of the system, asking many more detailed questions and drawing from a myriad of data points and sources that can help inform and support the scoring system. Calls to Action 7. Does every channel have an appropriate call to action? But even on your own, the above questions provide an excellent start. Obviously, they can’t provide the kind of comprehensive overview that we can achieve when using the tool properly, but your answers may point you toward insights that a full CSA could tease out in more detail. Try answering them now. To help, we’ve printed two blank CSA forms on the next page. On the first form, we suggest you score your own brand across the 12 CSA questions. Then, if you like, you can repeat this exercise for your major competitor in the second one. Then compare and contrast. This exercise is likely to provide you with plenty of food for thought, and it may cause one area or another to pop in a way you’d not previously considered. If you find the process rewarding and would like to find out what a real CSA can tell you about your brand’s communications system, please get in touch. BLINK 08 · Systems Thinking Issue 37 Channel Connection Channel mix Is the channel mix effectively reaching the target audience and delivering their business goals? Calls to action Does every channel have an appropriate call to action? Words: MediaCom MENA M:FILE S Links & destinations Do all touchpoints link logically to facilitate the consumer journey? Channel selection Is the station/title/site selection within the channel mix appropriate? Social connections Are the right social channels being used and do they connect effectively with consumers? Mobile strategy Is there an effective use of mobile touchpoints? Etihad maps the future for business travelers Business travelers are often loyal to one airline. How did Etihad connect them across the world with a systems thinking approach? A new name for business travelers Business travelers are a tricky bunch. Once they find an airline that caters to their needs, they tend to stick with it. There’s also the power of loyalty programs. 0 – no evidence of any activity 1 – poor 2 – basic 3 – good 4 – sophisticated 5 – best in class Content Consistency Consumer engagement Is the content engaging and relevant for the target audience? Single minded Are all touchpoints (online + offline) working toward an overall strategic goal? Content findability Is the content appropriately seeded, promoted and signposted to reach the right target audience? Platform & touchpoint relevance Is the content being effectively adapted across touchpoints, platforms and screens? 38 BLINK 08 · Systems Thinking Issue Always on Do the touchpoints sustain a contious brand presence across Paid, Owned and Earned channels? Campaign commitment Do the touchpoints maintain a long-term campaign message or do they frequently change direction? Etihad needed to fill its highly profitable business seats on new routes. That meant generating brand awareness (a key factor in airline selection), as Etihad was not as well-known as many of its rivals, including Lufthansa, American Airlines and Emirates. In addition to spreading the word about Etihad, we decided to show road warriors how the airline could make their business trips more valuable by helping them set up meetings on the fly. Who’s in town while you’re traveling MediaCom’s solution was “Mapped Out,” an app built into LinkedIn, the world’s largest network of globe-trotting professionals. It allows our target audience to turn future travel plans into business opportunities by leveraging existing contacts and easily arranging meetings. Users can sift through their contacts by sector and location, highlight their executive travel to their peers and book their business flight with Etihad, all through the application. We started by promoting Mapped Out to LinkedIn members most likely to be interested in Etihad’s newest routes to Abu Dhabi, India and Washington DC. Then we tracked app users, enabling us to create behavioral profiles and identify lookalike consumers for retargeting. These new prospects were mirror images of travelers who had actually booked on Etihad or who had researched the airline’s target destinations. airline is starting to take seats from its competitors. We put Etihad in front of a hard-to-reach, time-starved audience for a fifth of the cost of traditional business media. And business travelers who are planning to book flights have a 10% more favorable impression of Etihad and are 9% more likely to fly with the airline compared to a control group. Another indication of our success is that we’ve reached more than 100,000 business travelers and created a cookie pool for 30,000 LinkedIn business travelers. In addition, we’ve identified 100,000 relevant prospects via behavioral profiling, all of whom can be engaged in future campaigns. Finally, LinkedIn members have mapped out more than 205 million miles worth of connections – enough to fly round the world 32,000 times. Etihad is really flying With help from Mapped Out, Etihad’s brand awareness is now sky-high and the BLINK 08 · Systems Thinking Issue 39 Words: Jacqueline Corbelli, Co-founder, CEO and Chairman of BrightLine POV Connected Video for the Connected Consumer There are huge opportunities for brands in using the connected devices consumers already use to access video content. Connected TV expert, Jacqueline Corbelli explains. Technology and digital have transformed consumers’ expectations when it comes to the premium video experience. Thanks to the rapid adoption of connected devices and smart TVs, the popularity and usage of mobile apps and the sheer amount of video watched across multiple screens, and screen sizes, the ways we connect with the messages and content we care most about has been revolutionized. Yet many in media companies, advertising agencies and corporate marketing areas have not kept a full pace with these changes. Connecting with video There is a massive opportunity to leverage these trends and remake the connection between brands and consumers across the digital spectrum, and especially on what used to be called TV. The bottom line is that consumers have taken greater and greater control over how, when and where they will engage in messaging and content. Additionally, they have never been more empowered or motivated to seek out great video content. The internet is feeding TV consumption in an increasingly seamless way – 34% of US homes 40 BLINK 08 · Systems Thinking Issue already own a smart TV, 20% own a streaming device and a whopping 62% own a gaming console, all of which are being used, in part, to stream TV from the internet. In addition, 60% of connected TV homes are watching TV programs via the Internet, and a report from eMarketer this spring states that, in 2015, the majority of US Internet users will be using a connected TV. It bears out, according to Adobe’s recently published Video Benchmark Report, “the increased mass availability of new TV-capable platforms…has had a profound effect on TV consumption in the last year”. Through June 30, 2014 online TV consumption rocketed 388% year over year. The same technologies that have changed the way consumers access video content can also empower brands and marketers to connect with them across connected devices. We can now see clear evidence of a gradual yet steady march in the ad world to a full link up of digital rich video advertising with the new premium content ad opportunity that connected TVs now represents. The trend is both logical and real, now that “the connected TV universe can offer marketers a unique blend of digital interactivity and TV’s big-screen power”. Viewers no longer just watch At the heart of the new landscape of connected viewers is also a new language. These are consumers who don’t just watch, they "opt in," they "engage," they "interact," they "like," they "share," they "buy now," and they repeat experiences they enjoy across all the devices they own. Brands clearly need to become part of these currencies and to do that they need to embark on a deliberate path of adaptive change that acknowledges this reality. It won’t be an easy path, as the change required means a fundamental shift in the design of core processes, practices, systems, and business Data too is at the heart of the changing face of video. It enables brands to become smarter and shape content to the preferences of target consumers within the TV medium. The opportunity exists to make the medium work harder through a virtuous circle that leverages data to determine how to form converged TV strategies; generates new data that proves whether they work; thereby progressively enriching the data set that enables brands to continually refine the approach and create more flexible, dynamic systems. This is a route that position marketers to optimize the TV medium in the most valuable way for the consumer. The same technologies that have changed the way consumers access video content can also empower brands and marketers to connect with them across connected devices. approaches. It’s a time to activate and empower agencies to ensure they are in position to systematically incorporate connected elements into their media and creative strategies; it’s time to ensure brand managers are fully skilled on how development in converged - TV, mobile, social platforms can optimize brand relationships with consumers; and it’s time to weave the marketing and information management departments together to best leverage the power of interactivity, information flow and analytics to improve strategy development and decision making. In sum, the advertising industry must begin to reap the vast potential of a focused and deliberate reengineering of the on-line video ad strategy, and the critical processes that deliver it. Get it right and the industry can lay claim on the full power of a TV connection between brands and people in a fully connected world. Jacqueline Corbelli’s new book Revealed is available on Amazon. BLINK 08 · Systems Thinking Issue 41 Words: Jeremy Griffiths, Chief Business Science Officer, MediaCom Worldwide Diagram: Piotrek Chuchla FE ATURE Channel Attribution from System vs Silo Measurement 200 160 120 Measuring a system fairly is as important as understanding how it works. Jeremy Griffiths explains why fair attribution is a pre-condition to making the right connections. For more than 15 years, the MediaCom Business Science team has worked hard to identify the key drivers of real business performance. Initially, we focused on measuring direct response metrics. Today, our work has evolved into a much more holistic approach that covers brand response as well as communication and engagement goals: anything, in other words, that may elicit a meaningful consumer response across a client’s communications system. We believe that, in a world in which one element of the system can have a major impact across an increasingly far-flung system, truly connected measurement is now mandatory. Brands that fail to attribute accurate credit for achieving their KPIs risk making the wrong investment decisions. Measuring interdependent activities Too many marketers measure the 42 BLINK 08 · Systems Thinking Issue performance of each of their marketing activities as if they work independently of each other. The reality is that what happens in one part of the system has an impact on all the others. Take, for example, brand search, retargeted display and affiliates. Last-click analysis would credit these channels with driving a large proportion of success. In the majority of cases, however, these channels harvest the benefits of other, more upstream activities. This is not to say that investment in these channels is not profitable, but a fair allocation of reward could reduce their contribution. Our analyses shows that around 50% of sales directly attributed to retargeted display would have converted anyway; if this is the case, might it change your investment mix? Maybe. What we know for sure is that connected knowledge is power. 40 Category Example for Channel ROI Hierarchy Source: MediaCom Business Science The graph on the opposite page illustrates the power of what is measured in individual silos vs. the same elements measured across a connected system. Note that this graph is a live example of an average ROI hierarchy in a specific category at an efficient spend level. While there will always be a wide spread on actual ROI performances for each channel, what’s notable is the ROI difference not between channels, but between channels based on how they’re measured. A fully connected system audit can make a huge difference, potentially turning the “worst” channel into the “best”. Three changes to measurement Adapting to this reality requires three key changes to the way we look at measurement. The first is recognizing just how complex the journey through the purchase funnel has become. It’s crucial to discover all the steps along the way, along with how they interact with one another. This will enable brands to build a connected system of communication that puts the right messages in the right places. they want to achieve. Then we use those signals to enable optimization across the system as the communication happens. These rapid metrics could be search numbers, social buzz or website visits. What’s important is that they have a proven, causal correlation with the desired outcome metric. We also need an intelligent attribution model. If we simply look at footfall you may be tempted to only advertise on Friday, as Saturday is the busiest shopping day. Inserts DM Video System measurement What we know for sure is that connected knowledge is power. The second key change is being able to increase the speed at which measurement occurs. Securing a comprehensive econometric analysis report nine months after messaging begins won’t help manage a campaign. We work with our clients to identify the lead indicators (signals) that match as closely as possible to the business KPIs Direct Press Display retargeting Affilities DRTV Display Prospecting Generic Search E-mail 0 Brand Search Measuring the System for Correct Attribution 80 Silo measurement but there’s no point tracking whether a message is performing if there isn’t a contingency plan. Smart advertisers will have messaging alternatives to automatically slot in if what’s in place appears to be failing. Television production costs are problematic, obviously, but there are fewer obstacles in the areas of online display and other digital channels. At MediaCom, we have found that by simply encouraging people to think about measurement and the interdependences in any communications system leads to better planning and improved campaign results. The third key change that connected measurement requires is the power to respond to the real-time data. This may not be an obvious measurement issue, BLINK 08 · Systems Thinking Issue 43 Words: Phil Jones, Global Agency Business Leader at Google Illustration: Sam Green FE ATURE How to Connect Your Brand with the Connected Consumer Ready for another Generation Something? Meet Gen C: a group that’s connected, outspoken …and perhaps will be your most important brand advocates sooner than you may think. The era of the connected consumer – known as Generation C – is upon us. These are people less defined by age and class than by their interests and attitudes. It’s true that 65% of them are under the age of 35, but that means that an astounding 35% are not. 35% are 40, 45, 50 years old or even older. What unites them is that – if they’re awake – they’re online. Gen C's primary motivation for content selection and channel choice is their need for constant connection. They consume, curate and create content to stay connected, and they watch YouTube videos so that they can talk about them with their co-workers and friends (11). This is far different than the TV-watching couch potato of yore. Not surprisingly, most of Gen C’s content consumption takes place on smartphones. For example, 41% tune in to YouTube on their phones while waiting for something/someone, 18% percent while commuting from work or school, and 15% check out YouTube while commercials are airing on television. 44 BLINK 08 · Systems Thinking Issue Thinking about Gen C These habits require a shift in the way brand marketers think. As consumers connect across an array of devices in different situations, marketers must figure out how to offer information that people value in those moments. Being relevant isn’t a new idea, but doing so in the moment, across various use cases is where the magic now lies. There is hope in the fact that not only is Gen C not anti-brand or anti-advertising; in fact, they can actually be valuable fans. Two-thirds of Gen C consumers worldwide state that “if there is a brand I love, I tend to tell everyone about it”. The Gen C audience is 1.8x more likely to be influential opinion formers, claiming that “people come to me for advice before making a purchase”. (4) They are also big spenders: Gen C consumers are up to 3.6x more likely to purchase a product or service that interests them than their non-Gen C counterparts. (4) BLINK 08 · Systems Thinking Issue 45 Insight-based advertising Fortunately, marketers now have more ways than ever to understand this audience and identify the moments that matter. CRM, web analytics, advanced digital media metrics and reporting – these are all helpful tools. Gen C's primary motivation for content selection and channel choice is their need for constant connection. (a colouring effect where the bottom of the hair looks lighter than the top), the company identified a considerable increase in search terms relating to the style. It also discovered that consumers had no effective way to achieve the look at home. L'Oréal Paris nimbly responded by developing and launching the world's first do-it-yourself ombré solution. Smart! Similarly, Turkish Airlines spotted the growing popularity of “selfie” as a search term and quickly created its "Kobe vs. Messi: The Selfie Shootout" campaign (http://goo.gl/OXCDlf). The ad had 77 million views on YouTube in just one week, and went on to become one of the most popular commercials in 2013. with Google Analytics and found one variation that increased online orders by 7.1%. (9). More complex attribution solutions, of course, can go far deeper. A recent project conducted by Adometry produced optimization recommendations that yielded a 30-42% increase in converted visitors for a top global automobile manufacturer without any net increase in ad spend (10). In February 2013, when the “Harlem Shake” video launched, Google Trends showed how quickly it caught on (check this out here: http:// goo.gl/vd4oQH). Within two weeks, more than 12,000 "Harlem Shake" videos had been posted on YouTube, and they were watched over 44 million times. Brands that were able to move quickly were able to leap on the phenomenon in a way that connected with consumers. Pepsi, for example, was one of the first brands to move, generating more than seven million views of its Jeff Gordon “Harlem Shake” video (http://goo.gl/flnkbe). Another example of a company that harnessed data to successfully drive its content is L'Oréal Paris. When celebrities started flaunting ombré hair 46 BLINK 08 · Systems Thinking Issue Data, insight and agility To connect with Gen C, brands must also focus on data, insight and agility. Data helps brands understand the wider ecosystem and how and what each channel produces for their business. This becomes all the more critical when tackling Gen C, given that 90% of users turn to multiple screens to accomplish a task according to Google, Ipsos and Sterling (12) and about 50% who conduct research on a smartphone go a physical store to purchase (rather than buying online). To do something about it, we must first know about it. Business performance tools can then be used to produce insight that can yield important next steps, and small changes can produce big results. Puma recently tested alternative website headers Marketers now have more ways than ever to understand this audience and identify the moments that matter. The agility to leverage insights into the consumer journey and consumer behavior revealed by data is where the rubber hits the road. Data is the fuel Of course, the first step is to get the right data in place; only then can you capture insights, respond with agility, measure the outcome and “rinse and repeat.” The breadth of available data will fuel your brand content strategy, highlight the interrelationships between media activities and, ultimately, drive conversions. Regardless of industry or business type, constant connectivity gives all marketers the chance to connect with people in specific, real-life moments that matter. But as challenging as this moment is, it’s only the start. There will only be more screens in the future, more interoperability between them and, therefore, more opportunities for brands to be present and relevant. Data, insight and agility will ensure you can catch that wave. Sources/Research: 1. www.11mark.com/IT-in-the-Toilet 2. www.piperjaffray.com/private/pdf/TSWT%20Info graphics.pdf 3. www.nytimes.com/2014/08/28/business/less-prep- more-plugs-teenagers-favor-tech-over-clothes.html 4. www.thinkwithgoogle.com/research-studies/introduc ing-gen-c-the-youtube-generation.html 5. youtube-trends.blogspot.com/2013/02/the-harlem- shake-has-exploded.html 6. www.thinkwithgoogle.com/research-studies/youtube- insights-stats-data-trends-vol5.html 7. www.thinkwithgoogle.com/case-studies/loreal-paris- builds-brand-love-with-search.html 8. www.thinkwithgoogle.com/case-studies/how-turkish- airlines-found-success-through-selfies.html 9. static.googleusercontent.com/media/www.google. com/en/us/analytics/customers/pdfs/puma.pdf 10. www.adometry.com/media/Success-Story-Auto.pdf 11. www.thinkwithgoogle.com/articles/meet-gen-c-you tube-generation-in-own-words.html 12. The New Multi-screen World: Understanding Cross- Platform Consumer Behavior BLINK 08 · Systems Thinking Issue 47 Words: By Nick Burcher, Head of Social, MediaCom EMEA Illustration: Esther Aarts FE ATURE New Opportunities to get Connected on Facebook Content overload has forced changes to the way Facebook delivers organic reach, but systems thinking offers new opportunities for brands on the world’s biggest social network. Facebook is built on the promise of “making the world more open and connected,” but – in a world in which there is more content being created than there is time for consumers to consume – Facebook can’t connect everyone to everything. One side effect of these changes is that organic reach for brands has been consistently declining. Research from Social@Ogilvy showed that, by 1Q14, organic reach had dropped to 6%. In other words, only 6 out of 100 fans would ever see a post. Videos (such as the 17 million created during the ALS ice bucket challenge), friend posts, brand posts, photos, checkins, games, apps and advertising are all fighting for our attention. On average, there are now 1,500 stories that could appear in a person’s news feed at log-in. No one could possibly consume them all! Thinking in systems While this might appear to be a crisis for brands that have invested heavily to recruit and develop fan communities, Facebook’s response to this challenge has been to filter the news feed in order to prioritize quality and relevance. Facebook has also tried to reduce what it sees as news feed spam (“Like this post if you’re happy it’s Friday…”), requiring brands to be even more thoughtful about what they produce. 48 Blink · AW '14 · Systems Thinking Issue about the whole system, not just the silo of organic reach. New advertising formats coupled with innovative ways of building out audiences, such as objectivebased targeting, custom audiences and lookalike targeting, give brands access to paid advertising options they’ve never had before. Combine this with Facebook’s recent announcements on the potential of Atlas and the opportunities for brands are considerably enhanced. Additionally – as Internet-enabled Organic reach for brands has been consistently declining. other changes on the platform have actually created more opportunities for bold and imaginative marketers. This is because successful promotion on Facebook now comes from thinking devices proliferate and the importance of cookie-based marketing starts to wane – the ability to use Facebook-type, first-person log-in data to target users across devices will become increasingly important. A people-centered approach All this puts Facebook at the forefront of personal identity targeting. This is especially true as we enter an era in which fast content and programmatic buying enable brands to operate “in the moment”, using content and connections to instantly canvas one’s entire communications ecosystem to determine what message to place where and when. Working with a content approach such as MediaCom’s “Inspire Inform Involve” framework can help brands focus and maximize the potential for attention and engagement. how could VW participate in the conversation at a level that would both be credible and visible across a threemonth period? Our answer was ‘”Das Fan Auto 2014", a campaign that featured three social media stars competing to create the ultimate fan car, which MediaCom manufactured and displayed at dealerships across the country. The campaign was fuelled by supporting YouTube video and Facebook activity (both paid and organic), which also encouraged voting and participation. Successful promotion on Facebook now comes from thinking about the whole system. A great example of this is what MediaCom Beyond Advertising produced with Volkswagen in Germany around the FIFA World Cup. VW has football sponsorship assets in Germany, but it wasn’t a FIFA World Cup sponsor. The question became, “Das Fan Auto 2014” was created using a system that centered on “Inspire” content, which was then amplified through the involvement of the Facebook community. The resulting 89% campaign awareness, 25% engagement rates and high brand preference scores all came from taking a systems view that pulled everything together into a huge integrated campaign that included including traditional sponsorship properties, social media and dealer marketing. “Systems thinking allowed VW in Germany to cut through the FIFA World Cup clutter and enhance positivity towards their brands,” says Bernd Hoffmann, CDO of MediaCom Germany. The German footballer Thomas Mueller even featured the Fan Auto Tiguan on his personal Facebook Page. Changes to the feed experience are only the latest moves in Facebook’s produce roadmap, but one brand truth will always remain: marketers need to think about content and connections, embracing the bigger picture and a systems thinking approach. Blink · AW '14 · Systems Thinking Issue 49 Words: The Waters Foundation Illustration: Jacob Stead INTERLUDE Habits of a Systems Thinker The Habits of a Systems Thinker describes ways of thinking about how systems work and how actions taken can impact results over time. People who practice systems thinking often report that it sharpens and clarifies their understanding of interrelationships within systems, helping them find the opportunities or “leverage points” that can take the performance of the entire system to a higher level. Though “habit” is defined as a usual way of doing things, the Habits of a Systems Thinker do not suggest that systems thinkers are limited by routine ways of thinking. Rather, the Habits encourage flexible thinking and appreciation of new, emerging insights and multiple perspectives. To behave more like a Systems Thinker, take a look at these 9 habits… The Waters Foundation’s Systems Thinking in Schools work is recognized worldwide for making systems thinking accessible and practical, both for children in classrooms as well as executives in boardrooms. With its mission to build systems thinking capacity in schools across the country and around the world, the Waters Foundation focuses on developing generations of systems thinkers who apply 21st century skills in classrooms, schools, communities and future workplaces. Systems thinkers function as local and global community members who use the concepts, habits and tools of systems thinking to understand the complexities of systems and to face school, work and life challenges with an informed capacity to identify leverage action and achieve desired results. To learn more habits and to purchase Habits of a Systems Thinker cards, go to the Waters Foundation website: watersfoundation.ord/shop-online/ © 2010 Systems Thinking in Schools, Waters Foundation www.watersfoundation.org 50 BLINK 08 · Systems Thinking Issue Seeks to understand the big picture Ask yourself: How can I maintain balance between the big picture and important details? Identifies the circular nature of complex cause and effect relationships Ask yourself: “Where does circular causality/feedback emerge?” Considers an issue fully and resists the urge to come to a quick conclusion Ask yourself: “How can I manage the tension that exists when issues are not resolved immediately?” Observes how elements within systems change over time, generating patterns and trends Ask yourself: “What changing elements represent amounts and how quickly/slowly are they increasing or decreasing?” Changes perspectives to increase understanding Ask yourself: “As I learn about new perspectives, am I willing to change my mind?" Considers how mental models affect current reality and the future Ask yourself: “How am I helping others see the influence that mental models have on our decision-making?" Recognizes that a system's structure generates its behavior Ask yourself: “When things go wrong, how can I focus on internal causes rather than dwell on external blame?" Surfaces and tests assumptions Ask yourself: “When considering a possible action, do I and those I work with ask ‘What if’ questions?” Uses understanding of system structure to identify possible leverage actions Ask yourself: “Where might a small change – even those not yet considered – have a longlasting, desired effect?” BLINK 08 · Systems Thinking Issue 51