1. Dr. Erica Ng Dr. Irving Lim Dr. Candice Lau Dr. Mei Lim Kim E Perry Haley W. Ridza S. Kristine A. Eunice T.
ACADEMICS SPECIAL GUEST THE AD PEOPLE
TRANSNATIONAL
ADVERTISING AGENCIES
JIAWEN
Good evening Dr Chung and fellow classmates. Today, we will be presenting on Advertising. Let us introduce our academics –
Dr Erica Ng, who specializes in the origins of TNAAs (transnational advertising agencies) and their effects, Dr Irving Lim,
who has a PHD on Ethics of Advertising Dr Candice Lau, who is an expert on ad production and emerging markets and Dr
Mei Lim, who is currently doing a research on advertising and social media.
On the other side of our room, we have a real life example of an up and coming TNAA, Hons.ly Ad Agency. A little more about
Hons.ly ad agency. It was set up in 2004 by the CFO of a TNAA Sootchi&Sootchi, who left the top advertising agency to
pursue green pastures. Ever since, Hons.ly grew from a small company of 3 to 3000. Their headquarters lies in the concrete
jungle where dreams are made of, New York. Today, they have branch offices all around the world, especially in emerging
markets like China, Brazil, India and Russia. You are looking at a Hons.ly office located at 4202.
2. Advertising
• Advertising informs and inspires consumers so they can choose
how to enrich their lives
• Advertising stimulates competition among companies
• Advertising encourages product innovation
• Advertising plays a part - through the process of sparking
demand - in creating jobs in thousands of industries
• Advertising enables an independent, pluralistic, affordable
media, the very foundation of democracy itself
• Advertising also subsidizes a large part of the entertainment
industry - particularly sports, music, and theatrical events
“Advertising is part of the information currency
that drives international trade” (Gershon, 74)
3. +… Cont’d
“A legal product should have the right to be
promoted” (Hong Kong Association of Advertising
Industries)
• Not all products are harmful to consumer health, and
not all products promote harmful consumption of
needless products.
• Some advertising can even promote women’s rights or
encourage upper mobility of oppressed classes
4. Gershon(1997): The Transnational Advertising Agency:
Global Messages and Free Market Competition
• Media Imperialism: “one way flow of media products and
services from a few highly industrialized nations to Third World
developing countries” (117)
• Cultural trespass
• Influence on national economic priorities
• Dissemination of inappropriate products
5. Introducing HONS.LY AD AGENCY
RIDZA
[SOCIAL MEDIA KRISTINE
STRATEGIST] [PROJECT
HALEY MANAGER]
[THE CREATIVE
DIRECTOR]
EUNICE TAN
[THE INTERN]
Haley – The Creative Director
Kristine – Project Manager
Eunice Tan – The Interns
Ridza – Social media strategist
6. Award winning ceremony (Background:Slide of trophy and star trek sound clip to play)
…And the winner of the Most Creative Advertisement of 2009 goes to…. HONS.LY enerGEN-Y taste the revolution
advertisement!
(Video starts playing in the background)
*Creative Director, Project Manager and Social Media strategist receives award and hugs each other* FREEZE
7.
8. One Year Ago...
Turning back time:
Let’s look at what happened 6 months ago.
One day, HONS.LY ad agency received a brief from a major ad client
9. Brief
BRIEF:
CREATE AN ADVERTISEMENT
TO HELP ENERGEN-Y DRINK
ENTER A LARGE EMERGING
MARKET CALLED NM4202.
DESCRIPTION:
*Slide of Brief*
(UNFREEZE) *Creative Director goes to Intern are instructs her to do data mining of 4202*
10.
11. Male
Data and Findings
8
Female
36
football
Singapore stars popular blogs tv series
chocolate reality TV animal welfare
politics
music social media bubbletea chinese pop
tennis staying up
instrumentsuition scholar
t
sports sales late
iPhone
kpop manga
photography gLee
FML facebook
travel jpop
games
entrepreneur
dean’s list
fashion publicclubbing
religionrelations
gossip
girl
-why facebook
-how we used facebook and google
-unethical stalking.
12.
13. Privacy
• Smart ads need to know their audience!
• Need information
• Data mining
• Information for sale
– Aggregate data?
– FB sells access to unique identifiers
• Consumer expectations
14. Risks
Privacy& data security: how mined information is used and
by whom becomes an issue, and a significant legal minefield
Prevent data from theft or misuse
Advertising ecosystem needs to be fostered so everyone in
the value chain benefits relative to their contribution.
While
the
poten+al
is
immense,
there
are
also
significant
risks
and
poten+al
challenges
that
need
to
be
tackled
before
the
industry
evolves
into
a
vibrant
adver+sing
medium.
Once
you
start
mining
user
data,
significant
profile
informa+on
can
be
developed.
Then
how
that
informa+on
is
used
and
by
whom
becomes
an
issue,
and
a
significant
legal
minefield.
In
addi+on,
if
the
industry
doesn’t
want
regulators
to
get
involved,
the
security
policies
and
procedures
need
to
be
in
place
to
protect
the
data
from
theA
or
misuse.
15. 2. Ad production
(Back to screen of award ceremony, reuse the slide with the crappy trophy)
*UNFREEZE* Creative Director: We’re so honored to receive this award today! At Hons.ly, we sound like we’re honest, but
we’re not. We pretend to be creative, but we’re not. But we’re so glad that just because we are a TNAA, we can dominate the
industry and win these awards, even though there are small local firms who produces cutting edge creative campaigns. Its just
too bad they don’t have the money and access to many media channels, which we do. Its all about size, you know. Anyway, this
is such a touching moment, I think im going to cry soon. Let me pass the mic on to my Project Manager who will walk us down
memory lane to our road to success.
Project Manager: When we were given the honorable task of marketing enerGEN-Y, I thought, what can I do to help this
energy drink penetrate into a market dominated by drinks like H20, Redbull and Naughty G? I was at a lost indeed. But then I
remembered what Advertising is all about – creating needs. Thank god for the other cultural industries, which has
homogenized audiences’ needs these days! All I had to do was to look at the market report and pick out what the 4202 market
yearned on, and then create an advertisement that will lead them to believe enerGEN-Y will help them achieve it. Its called
Glocalization. Its like.. the new buzz word in the industry or something. *FREEZE*
16. Critiquing the Advertising Strategy
• Gershon’s quote
“change in the design of advertising messages from product
information to persuasion-oriented campaigns that appeals to the
emotions and psychological needs of the audience.”
Theory group comes back in and critique on the different method of ad production
17. Standardization or Glocalization??
• efficiencies in advertising
expenditure!
• established a common
The New
The Old Formula! brand image! Formula !
• gave access to market
‘Standardization’ ! segments which were similar
from one country to another"
‘Glocalization’ !
BUT!
• Global Marketing Disaster !
18. Glocalization for the Chinese Market
China being the largest market
Therefore ad should have local celebrities and professionals
well known in China to endorse product: could we have Kim
E. Perry perform something for the Chinese market?
‘Live’ testimonials from the rest
3. Promotion of products in Asians market
*UNFREEZE* Project Manager: So anyway, as I was talking about Glocalization right? What a deep concept, let me pretend
to understand it. Other than our awesome ad, we had a set of endorsement posters to complement our campaign. 4202 is a
market consisting largely of Asians, and our research saw that they liked K POP. This explained why we had Kim. E Perry to
endorse our drink! Of course, only big agencies like us have the connections to celebrities like them. Other than Kim E Perry,
we also realized that 4202 is a market with people who aspire to be achievers in sports and their professional careers, which
explains why we had a huge tennis star and Georgia Lee, oops, I mean Gorgeous Li to endorse our drink. Of course we were
smart enough not to engage Jackie Chan this time round, given the fact that he endorsed the last 20 products we were
marketing….So yeah, this is glocalization for you. Thinking globally but catering advertising messages to the local audience.
*FREEZE*
Candice - china etc.
19. Their economic growth provides great potential for TNAAs.
Reasons for entering
By breaking into emerging markets,
TNAAs can increase market shares and increase profits
emerging markets
21. Recent Developments in the
Advertising Industry in China
SinceChina joined the WTO in 2001, Chinese
advertising profession is increasingly under
global influences.
Foreigncompanies were initially required to
operate in China as joint ventures with a local
Chinese agency.
22. Recent Developments in the
Advertising Industry in China
• However in order to achieve world class standards
and cutting-edge advertising, the requirement for a
TNAA to joint venture with a local company was
abolished in 2005.
• Multinational agencies may now operate as foreign-
owned corporations and repatriate profits easily
• Two-tiered structure of the global advertising industry
- Large Global Advertising Agencies
- Hundreds of local agencies that serve smaller
cities of China.
23. Recent Developments in the
Advertising Industry in China
• A combination of foreign direct investment and
high economic growth, advertising expenditure
has exceeded US$7.2 billion
• China overtook South Korea to become the
second-largest advertising market in Asia.
• With a total of 76,200 advertising agencies and
a 14.8% growth rate in 2004, China became
one of the largest and fastest-growing
advertisement markets in the world
24. CHINA'S TOP DIGITAL BRANDS
KFC
Nokia
China Mobile
McDonald's
Coca-Cola
Nestle
Alibaba
Pepsi
Nike
Samsung
26. Consumer-Citizen
• The role advertising has
played and is playing in
China’s gradual
transformation into a
consumer society
• A political economy that
promotes high salary and
high consumption
28. Challenges Faced - Cultural
Despite modernisation, China is rooted in traditional Chinese
values
Posing dilemmas for advertising executives to develop
creative campaigns
Advertisers soon saw a need to remove the ‘Americanness’
out of the product
29. Cultural Trespass -
Ads Disallowed in China
Homogenized, broad appeal messages that failed to
consider the impact on Chinese cultures
Promotes consumption of Western products
regardless of the culture’s needs or wants
Hence incongruent cultural views of consumers and
marketers and a lack of historical sensitivity on the
part of the advertisers, may result in failure.
31. Challenges Faced- Political
2. Political :
Socialist system of one ruling party
Chinesegovernment has more power to intervene economic
development than any democratic government
Unlikethe U.S where there is a National Advertising Review
Board, the government reviews advertising in China.
32. Challenges Faced- Political
Advertising produced by multinational agencies for global
brands frequently encounters strong feelings and attitudes on
the part of the Chinese government.
33. Analysis of ad content :
List of Advertising Taboos
Tom Doctoroff, CEO of J. Walter Thompson for
Greater China advices advertisers to stay away from
these taboos:
1.
Sex – No Cleavage, Sexual Scenes, Homosexuality
2.
Unsafe behaviour – No jaywalking, spitting
3.
Disrespecting the political hierarchy –
Making fun of any political figure
34. Analysis of ad content :
List of Advertising Taboos
4. Disrespect to social hierarchy – Eg. Teacher
must always be wiser than the student
5. Affronts to China- National symbols are
sacrosanct
6. Affronts to competitive products-No
comparison advertising
7. Affronts to neighborhood pharmacists- No
showing of patients or symptoms
36. TNAA representative
Apartfrom tapping into emerging markets, our TNAA also
aims to enter global markets
Social media blast (twitter & facebook)
38. Existing Media Trends
In
the
early
19th
century,
the
only
way
to
get
news
was
face-‐to-‐face
communica+on
but
that
started
to
change
with
the
advent
of
printed
newspapers
and
magazines
in
the
1900s.
Then
came
radio,
followed
by
Television
which
s+ll
dominate
the
medium
but
people
are
quickly
moving
away
from
tradi+onal
media
as
Internet
websites
and
social
networks
are
fast
becoming
our
primary
sources
of
news
and
informa+on.
These
days,
everyone
is
trying
to
figure
out
how
to
connect
with
other
people.
It
used
to
be
simple,
you
just
placed
some
ads
in
whatever
newspaper
that
was
most
suited
to
your
product,
but
now
that
world
is
becoming
ever
more
irrelevant.
So
how
do
you
connect
with
other
people
today?
And
more
importantly,
how
do
you
do
it
tomorrow?
39. Source:
h*p://www.baekdal.com/media/market-‐of-‐informa:on
Current
challenges
in
adver1sing:
Fragmenta+on
of
audiences
and
media
op+ons
Informa+on
load
Selec+ve
viewing:
TwiNer
–
people
choose
what
they
want
to
see
&
hear
predicts
that
tradi+onal
media
repor+ng
on
newspapers,
Television
&
Radio
will
disappear
by
2020
to
be
replaced
by
social
news.
we
are
currently
in
the
middle
of
the
most
dras+c
change
since
the
inven+on
of
the
newspaper
40. Rise of social media as a
local business resource h*p://searchenginewatch.com/3635350
41.
42. Social Media Marketing
SNS Categories
General (Facebook, MySpace)
Portal affiliation (MSN, Yahoo)
Vertical (Livejournal, interest based sites)
Behaviorally
targeted ads 108% click-through rate
compared to contextual ads
43. Social Media Marketing
Promote WOM discussion of products- increase currency
Relies on momentum effect
Increased exposure as friends will introduce as well as the company
44. Trend-Tippers
Law of the few
Mavens
Salesmen
Connectors
Stickiness
Inspires action
Power of context
45. CASE STUDY
Tracing the evolvement of advertisement
distributing channels for McDonalds’
55. Viral Campaigns
on Social Media
•-‐
Transcends
adver:sing
•-‐
Advocate
social
values
Germany •-‐
Enhance,
value-‐add
to
brand
name
h"p://www.youtube.com/watch?v=yk-‐
C5cZDYgs&feature=player_embedded
Youtube
+
Facebook
In
its
new
an+-‐liNering
campaign,
launched
in
May
ahead
of
the
FIFA
World
Cup
2010,
the
global
fast-‐food
chain
is
asking
young
residents
of
urban
areas
not
to
throw
liNer
around.
Youngsters
can
map
their
own
face
into
the
video
and
kick
the
trash
in
the
bin
to
win
+ckets
for
the
Fifa
World
Cup
in
South
Africa.
56.
57. If you are an Advertising Manager...
• are you still trying to get journalists to write about
your products?
• are you still making websites?
• is your social networking strategy to 'get a
Facebook Page'?
• ...or...
• Are you making yourself a natural part of people's
58. SMS Blast
Send sms to classmates
Plant people in the crowd to exclaim at how the sms is
intruding their privacy/personal space
RIDZA: “So do you all like my new iphone?...”
59. Location-Based
Advertising
April
16,
2010:
McDonald’s
Foursquare
Day
McDonald's
saw
33%
increase
in
check-‐ins
via
a
very
small
$1,000
foursquare
campaign
On
April
16,
2010,
McDonald's
used
100
randomly
awarded
$5
and
$10
giAcards
as
check-‐in
bait
to
lure
in
poten+al
diners
-‐
via
Foursquare.
The
result
of
which
you
can
see
in
the
graph
below.
But
in
terms
of
tweets
then
McDonald's
claim
that
nearly
600,000
people
poten+ally
no+ced
it
via
TwiNer,
and
s+ll
only
719
people
reacted
to
it.
That
is
a
conversion
rate
of
0.12%,
which
is
below
most
click-‐trough
rates
of
website
banner
ads
(not
very
impressive).
Another
thing
was
that
this
en+re
campaign
wasn't
a
part
of
a
long
term
social
media
strategy.
It
was
a
test
by
people
who
hadn't
used
Foursquare
before,
and
who
wanted
to
see
whether
there
was
anything
in
it.
But
they
proved
that
they
can
influence
people's
behavior,
using
Foursquare,
and
that
this
might
be
a
way
to
increase
both
sale
and
traffic
in
the
future.
Connec+ng
people
is
key
I
think
the
real
power
of
loca+on
based
services
is
to
focus
on
crea+ng
long
term
commitment
and
loyalty.
60. Current - Future trends
Location-based/mobile advertising
Global mobile subscriptions surpassed 4bn at year-end 2008 and are
expected to approach 6bn by 2013, making mobile services an extremely
relevant platform for advertising for mass audiences.
Revenue potential in Emerging Markets, with a particular emphasis on
BRIC, Indonesia, Mexico, Romania, South Africa and Turkey.
61. Huge growth reported in Emerging Market
Mobile Advertising
- creates a new revenue
stream for telecom
operators as well as for
technology enablers and
content developers
- mobile advertising will
play a key role in driving
usage of paid mobile data
services
h*p://memeburn.com/2010/07/huge-‐growth-‐reported-‐in-‐
the-‐south-‐african-‐mobile-‐adver:sing-‐market/
63. Wireless Advertising
Technologies
Source:
h*p://www.opengardensblog.futuretext.com/archives/2006/10/sell_phones_wha_1.html
As we have seen in Japan and Korea, higher processing power handsets and
3G pipes play a significant role in the adoption of rich advertising content.
66. Gershon (1997):
The Transnational Advertising Agency:
Global Messages and Free Market
Media Imperialism: “one way flow of media products and
services from a few highly industrialized nations to Third
World developing countries” (117)
Cultural trespass
Influence on national economic priorities
Dissemination of inappropriate products
67. Cultural
Trespass
Homogenized, broad
appeal messages fail to
consider the impact on
local cultures
Promotes consumption
of Western products
regardless of the
culture’s needs or wants
68. Cultural Trespass: Skin
Unilever: the same corporate structure campaigning for “real
beauty”, is at the same time marketing and promoting skin
whitening
Fair and Lovely, Olay, Vaseline, Neutrogena, L’Oreal
GlobalIndustry Analysts reports the market for skin-whitening
creams will grow to $10 billion by 2015
69. Lighter Skin = Privilege
Multinational corporations are profiting from and further
exacerbating ingrained attitudes which favor white skin,
reflecting the historical caste-system stereotyping
70. Advertising
Agencies
While Eastern nations, like India,
are trying to transcend this
stereotype, advertising agencies
are reinforcing it
….and by purchasing from
subsidiary brands, North
Americans are supporting it!
Global Industry Analysts reports
the market for skin-whitening
creams will grow to $10 billion
by 2015.
71. Influence on
Theory of Rising Frustrations
Advertising promotes consumption of luxury goods for people who
can afford them, and induces frustration in those who cannot
National Economic Priorities
Directing attention away from development goals
72. Advertising of luxury goods in the Neglects needs
Developing World targets the higher social-strata,
yet these ads are visible to everyone of majority
73. Many citizens in Third World countries lack
the ability to choose the best products Inappropriate
Limited education and illiteracy inhibits the degree to
which underdeveloped countries will use these products properly Products
74. Nestle
Plied mothers with free samples of infant formula until their
own milk ran dry, after which they became forced to purchase
costly commodity
Were not taught how to make the formula properly
Concerns about labelling
76. Possible Q & A questions
Itis worth advertising to small markets? (Take into
consideration the increasingly fragmented audiences of
today and the ability of social media to narrowcast.)
Isit practical for TNAAs to be so big given advertisements
need to have a local flavor?
What are the benefits of TNAAs over large local companies?
