While much of the talk about China is about slowing growth, WPP China CEO Bessie Lee highlights the increasing power of mobile in a market that’s still expanding.
By Jo Bowman
Bessie Lee is quick to set observers straight if they think the wheels have fallen off the China market. Yes, she concedes, the growth rate in the national economy has slowed to half what it was a decade ago. But with 6.5% GDP growth in 2015, that still puts most large economies in the shade, and makes China a huge powerhouse that’s still expanding.
When China’s GDP was making headlines in 2005 with a growth rate of 15%, it was from a much lower starting point; that growth amounted to US $340 billion. Last year, while growth was ‘only’ 6.5%, it equated to US $706 billion.
Bessie Lee is the China CEO of WPP, the global communications company with companies specialising in advertising, public relations and market research. It owns Kantar, TNS and Millward Brown.
She says media investment by advertisers has generally tracked the overall economy. “The double-digit growth in media spending stopped before 2014 or even 2013; we’ve seen single-digit growth since 2013, similar to GDP,” she says.
“The similarity between China and other markets is that an increasing amount of money is shifting to digital and that’s pretty much the same worldwide, but what’s different here we have a lot of money that shifted to social media, however, that money is not necessarily hard-core advertising investment.”
Advertising spend online has overtaken investment in television advertising in China; in 2015, TV adspend was 40.8% of total investment, compared to 41.8% spent online.
What top-line adspend figures fail to measure, she notes, is what’s becoming one of the strongest elements of brand communications in China, and one that’s uniquely Chinese.
“In China, the social media network is WeChat, which has 600 million active users on a monthly basis,” Lee says. “But WeChat is very protective of their user experience so they’re very cautious about accepting advertising … they’re very cautious about not overwhelming their users with lots of ads. Instead, they encourage brands to come onto WeChat and open a corporate account under the brand or under the company and use WeChat as a platform to engage with your consumers.”
WeChat is a mobile-only platform, and this is important in a market where mobile is fast becoming the primary screen for many consumers. “At the moment there are 1.2 billion mobile users and the number of mobile internet users is close to the total number of internet users. So I reckon by the end of this year or next year we’ll have more mobile internet users than PC or laptop internet users,” Lee says.
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Carlos Ochoa & Daan Versteeg discuss relevant benefits of integrating behavioural data into research design and the benefits it can bring.
In the first of a four part series we look at how adjacent disciplines view research. David Taylor from Kwittken London provides the first input – from our colleagues in PR.
By Marina Cozzika
On my way to ESOMAR’ sensory forum perched on high heels, trying to avoid the pitfalls of Paris’ pavements, holding a hot cup of tea with one hand while texting with the other, smelling with envy hot croissants and bread just baked, annoyed by the sound of cars passing by and enjoying the wonderful view of the Eiffel Tower against a clear blue sky, I thought to myself that Paris was the perfect city to enjoy a multi-sensory experience. My senses were stimulated, working in synaesthesia, an experience that lasted all day at the ESOMAR sensory forum. The day promised “an open dialogue for insight specialists and sensory scientists to connect and exchange innovations across methodologies and marketing, all geared to demonstrate the business impact of uniting multi-sensory expertise”. Did it live up to its promise?
Methodologies: Where we are now, challenges and opportunities
We started the day with Herb Meiselman who gave us a good view on how sensory and marketing have evolved throughout the years from where we are now, the challenges and opportunities we have as an industry. He stressed that we have to keep a balance between laboratory research and real-life research. Clearly it’s a difficult path to walk in sensory as both controlled studies and real life testing bring complimentary diagnosis. So is one more right than the other? Furthermore, the industry has changed a lot with the internet and the growth of home-use testing. He also pointed out that we need to develop methods that work globally and in the process identify local consumer issues, whilst uncovering global solutions, not an easy task.
Another key issue in sensory highlighted by Herb is the use of trained panels vs consumer panels. Whilst trained panels will contribute with clarity thanks to their rich semantic stock of sensory descriptors, they shall not be the reference for hedonistic scores. This is when consumer panels are needed. The situation is now in a state of flux as new groups of statistically based methods are making consumers panels more applicable. Companies are now testing consumer panels for sensory descriptions and trained panels are being asked to predict the liking scores of consumer panels. Herb Meiselman does not know how it will all turn out. What’s clear however is that now broader measures are being used like “satisfaction”. An encouraging shift as the industry is getting deeper into emotion measurement.
After Herb’s fundamental presentation, followed a flourish of complementary papers and discussions. Diana Derval of DervalResearch regaled us with a 360° presentation that covered – in a most entertaining way – all senses. Specific sense experts followed, from sound with Laurent Cochini of Sixième Son, to scent with Arnaud Montet of IFF, to Massimo Cealti the voice of the consumer or as he described himself, the dark side of the force, culture, and an original and innovative approach to sensory matters through a semiotic perspective by Fiona McNae of Space Doctors who uses culture to make sense of the world around us.
Connecting culture and sensations
Fiona McNae’s presentation brought us back to the importance of popular culture, an importance currently seized by two fascinating exhibitions currently taking place in London, the Tate Sensorium that draws together experts in sound, taste, scent and touch to bring the visitor a multi-sensory experience linked to four paintings, and the Alcoholic Architecture where you can walk through a cloud of gin tonic (note to myself, plan a trip to London!). Our industry saw a shift from the corporeal, the physicality of sensation, towards the abstract, but now it’s shifting back to the corporeal. A brand only exists in the heart and mind of the consumer through the senses: how it looks, how it smells, how it talks… Lush is a good example of a brand cohesive from the way it was designed, the way you are welcomed into the store, the sound you hear, the service you get…and on the receiving end of the brand experience. Why is it a success? The more sensory you put in your brand, the more likely you are to connect with your consumer. You will build stronger memories, rituals, recognition and in the end, preference.
We were further enlightened through concrete case studies that respectively encompassed all senses.
We learnt that taste is an important sense as the taste buds on our tongue determine the love/hate relationship we have with food and beverages. Some of us have 10 taste buds, some have 1000, they determine the intensity of taste that we experience and divide us into three profiles, the super taster, the medium taster and the non tester. Diana Derval used a Red Bull case study to make her point. The brand first targeted night-clubbers but soon found out that 70% of their cans were sold at extreme sports events. Research showed that most participants had a strong immune system (so they are “extreme sports” ready), which makes them non tasters and appreciate Red Bull. People with weak immune system have super taste buds and seem most likely not to like Red Bull.
The function of sound is important to create an emotional connection with a brand. Laurent Cochini of Sixième Son presented an interesting case study, the audio branding work they did for SNCF France’s national railway company. Hear it here. Four year after the launch, research shows an impressive brand attribution. 92% respondents recognize the brand after hearing the Audio logo, 88% recognize it after just two notes, 71% feel attracted/very attracted to the brand.
Our eyes have many receptors but all are not equal and depending on how much we have, we perceive color or contrast differently and with more or less subtlety. Research done by Derval for Ubisoft’ Assassin’s Creed to understand the profiles of gamers showed that gamers see very well contrast and the nuances of the same color. So Ubisoft found out that there was no need to add too much color to their videogames.
Arnaud Montet of IFF raised the question of how to bring rationality into the emotional world of fragrances with the Aqua di Gioia case study. The brief was to develop a feminine fragrance under the umbrella brand of Aqua di Gio. The concept was to convey joyfulness. The challenge was to maintain a level of freshness and create something engaging. IFF’s strategy was to connect with the consumer, to define it and translate it into an olfactive signature using qualitative research to define the emotional territories of freshness. The result: a success story.
We all have sensors located in the lines in our hands and in our body. This enables us to perceive touch, renders us sensible to cold or heat… we all produce vibrations that we perceive through our hands and process with our senses. There are three types of touch profiles: the super vibrator, the medium vibrator and non vibrator. If you are a super vibrator, chances are you need to touch to feel the product because of the sensitivity of your skin. A make-up brush by Sephora was first presented in a packaging that didn’t allow consumers to touch it. It did not sell! Research showed that consumers needed to touch the bristles to experiment the thickness of the brush. So packaging was changed.
All these examples and explanations have left my brain buzzing and my senses more alert to decode my environment. Sensory marketing and by extension sensory research clearly need to be championed by brands and manufacturers. They clearly leave a strong imprint.
Marina Cozzika, Added Value, France