Archive for the 'Marketing and sales' Category

Catching Gen Y with pizza delivery

I’ve been reading a lot of commentary recently about how differently companies need to be targeting Gen Y (people born in the UK after 1988), both as an employee and consumer. The Harvard Business Review has great commentary on the subject, and I’ve just come across a good example by the The Economist who is targeting college students in the US using pizza delivery boxes. Pizzerias around college campuses received Economist branded pizza boxes detailing world production stats on the students favourite pizza ingredients such as cheese!

It’s novel, entertaining, educational and clever…all the things that Gen Y expect from a marketing campaign.

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Put that in your iPod and er, listen to it

Here’s an interesting battle going on in the music industry, with Apple ‘threatening’ to close doors to iTunes, the dominant force in sales of digital music. (BBC has the full story)

If word gets out that music publishers are trying to stick it to consumers, and Apple is fighting to keep prices down on their behalf, well, there’s liable to be public backlash against the labels.

To be boring or to be entertaining?

Most conference exhibitors have a stand with panelling depicting the corporate logo, a few pretty pictures, TV screen and giveaways…pens, stress balls, playing cards etc… the problem is that all the corporate exhibitors do the same thing! Unless a customer knows what you do and who you are, all exhibitions tend to blend into the same ol same ol pot! Where is the innovation? Why spend thousands of pounds trying to connect with customers at a conference but then create no unique or memorable connection?

The task of getting greater connection has become even more difficult as Generation X and Millennials become decision makers for corporate companies…mainly because people from these generations demand an experience out of your marketing…they understand the rules of the game, they know you are selling to them, so if you are going to take up their time their attitiude is you had better entertain me!

I’m at the IFP conference today at the Celtic Manor Hotel in Wales where my colleague Graeme Codrington is presenting our Mind the Gap presentation on the different generations. Two companies stand out as exhibitors who are connecting with their customers. Investec Private Bank has a virtual golf simulator…clever because the Celtic Manor Hotel is the host of the 2010 Ryder Cup and because allowing conference delegates to come and swing a club enables them to make a lasting and memorable connection, the selling is left until later.

The Santander Group is leveraging off of their sponsorship of the McLaren F1 team. They have part of a life size F1 racing car replica which you get to sit in and race Lewis Hamilton…neat…staff crewing the stand are also dressing in F1 t-shirts creating a relaxed atmosphere.

No clues for which of the two stands out of about 50 or so at the IFP conference are getting the most interest and the most people connections!

Help yourself…PruHealth connecting with customers

Earlier today I walked out of Piccadilly Circus tube station and was feeling a bit parched. Low and behold PruHealth were there to quench my thirst with a bottle of water and signs saying. “Help yourself” …clever, now this is a campaign that will connect with Generation X!
Here are some reasons why:
- Gen Xer’s want immediate gratification… the water gave me immediate gratification connecting me with the PruHealth brand and quenched my thirst.
- Gen X love stories or lines with multiple meanings. They have grown up in a complex rapidly evolving world and have learned to view things from different angles. The strap line “Help yourself” had several meanings.
- Help yourself to a bottle of water… no questions asked no reasons given …cool!
- On reading the marketing splurb on the bottle, “Help yourself” was also referring living a healthy lifestyle and benefiting from PruHealth’s lower premiums…
- They even have a fab interactive web based tool called a pruhealth-o-meter …cool name, it’s a bit quirky and fun, try it out! click here
- Pru also handed out a miniture Frisbee with the bottle of water… I’m not sure what that was all about as I don’t think that catching a Frisbee is a very active sport…but maybe my dog will like it ?
- One quick recommendation, don’t use the get a quote button until the customer has finished playing with the pruhealth-o-meter. Gen Xers like to be entertained but don’t hit them with the sales prompt too early. They get that you are selling to them but let them have their entertainment first.
- It’s also a pity that the pruhealth-o-meter doesn’t work on my iPhone… an alternative html version would get around this, not as flash but would give Gen X connectivity all the time.

Overall a really good campaign, it’s simple, engaging hits a number of Gen X driving values and leaves the choice up to the consumer to decide if they want to help themselves.

Nice one Pru!

The Future of Publishing’s History

I am not the greatest fan of the publishing industry. The first paperback book, a massive innovation in the industry, was published this week in 1935, and sometimes it seems that was the last innovation the industry has seen. As a published author, the lead times in the industry are seriously frustrating and the processes archaic. But, hey, I suppose I shouldn’t bite the hand that feeds me (well, part feeds me - in a world dominated by the increasing valuation of intellectual capital and decreasing value of manual labour and intermediation, the publishing industry, with their paltry standard 12-15% of wholesale price paid in royalties stands as a bastion of anochronism).

But, today, I read of something that inspires some hope in me that the wonderful people of the publishing industry do have an eye on the future. Faber are going to be publishing out of print books on a once-off, on-demand basis. They have started with a limited catalog, but the concept itself could (and should) easily be extended to all books everywhere. With digital printing and even e-books, it should be very little extra work to take any book anywhere and reproduce it. Check out the announcement and details here. A nice idea, and one that I hope is copied, and inspires further innovation.

Just do It turns 20

Sometimes a product name, a slogan or an advertising campaign becomes lodged in societal consciousness, and embedded in our language forever. To generations of young people, such key phrases can instantly bring back memories of childhood and another time. I was recently listening to a radio phone in show in South Africa, and being reminded of “it’s not inside, it’s on top” and Panasonic’s “quest for zero defect”. You can do a fun test on your memories here. And there is a great list (that you can add to, of course) at Wikipedia.

Anyway, this is a short post to say that Nike’s “Just Do It” is 20 years old. Nice one!

Marketing with a WOW factor

Radiohead have used some fantastic new technology to record their latest single. Creativity-online.com says this about the new video “Radiohead’s latest video, for the track “House of Cards” from the In Rainbows album, uses real time 3D recording instead of cameras, utilizing highly technical structured light and Lidar laser-enhanced scanners to model lead singer Thom Yorke and provide an otherworldly narrative accompaniment to the song.”

This is cutting edge stuff and if any marketers want to do something to impress Generation X and the Millennial generation then this is it. But don’t wait as it is notoriously difficult to impress these two generations and it won’t be long before the use of this technology becomes “so like yesterday.” Act fast the application of this technology has some WOW factor something that is very difficult to create in marketing these days.

Have a look at the video

Because you are worth it - Good example of Gen X and Baby Boomer campaigns

L’Oreal have launched a recent TV ad campaign targeting Baby Boomers for their Men Expert Range. (see the advert here) It is a pretty good one…for Baby Boomers that is. L’Oreal have long identified the pulling power of celebrity endorsement and use Pierce Brosnan as the face of this campaign. Pierce tells us how he likes to “fight for the causes he believes in” and “find time for himself” - all good noble Boomer causes. Pierce is a great role model for Baby Boomers and he exudes the youth and vitality which are major core value for this cohort.

Contrast this with another “viewer created” advert which I found on YouTube for L’Oreal’s same product range. This spoof advert would appeal to Gen X (see the advert here) and uses humour and paradox to connect with Gen Xers.

For now L’Oreal have it right, using celbrity endorsements is the correct way to go with Baby Boomers, as their core target market, are entering their post middle age years and their obsession with staying young and looking good makes them the perfect target market for L’Oreal. However, as Gen Xers enter the mainstream I hope they pick up on the changing values and attitudes of this younger generation and ditch the celebrity endorsement angle, it just doesn’t work for Gen X.

L’Oreal give the guy who created the spoof advert a job in your marketing department he is obviously worth it!

Good with Money

Our global research has long been indicating that companies who concentrate more on who they are and less on what they sell will gain the competitive edge over their competitors.

The “who you are” is defined by the values a company lives by and how effectively the company’s values connect with the talent staff that work for them and the valuable customers that continue to shop with them.

One of the values that companies need to be demonstrating today is that of being ethically conscious. And this means more than just changing to efficient green light bulbs! It means living by the value…making business decisions, both strategic and operational, against the value even if it hurts the bottom line.

I came across a company that is doing great stuff in this sphere. Have a look at their marketing campaign The Co-Operative Bank is really promoting who they are and what they stand for, and most importantly their claims are back by some substantial meaningful and significant claims. They have turned down over £700m in revenue based on ethical decisions… now that is putting your money where your mouth is and living by the values they subscribe to. Impressive!!!

I’ll be reviewing this campaign and the company’s operations over the next few weeks and trying to find out more about their results, but I’ll stick my neck out here and make a prediction that their values based campaign is having a fantastic response from the Millennial, Gen X and Boomer generations, a unique achievement.

Tories target Generation X

Tories logoAccording to The Sunday Telegraph, April 20, 2008, David Cameron, the Conservative Leader is channelling considerable resources into targeting people between the ages of 29 to 40. The Tories see this group of 3 million voters as being key to their success in the 2010 general election.

Research shows this group, often referred to as Generation X, to be a demanding and less forgiving than older generations. The Tories have identified that issues such as housing, transport, the environment, crime, education and the NHS are more relevant to Generation X than tax cutting pledges of the Labour Government. This may be so but David Cameron should well consider the core driving values of this Generation especially as all their literature is aimed at them. Generation X are highly suspicious of marketing especially political marketing and if the Tories want to connect with Generation X they will need to have an in depth understanding of the formative events that shape the attitudes, views and norms of this very dynamic and constantly changing Generation. Our experience shows that research is often already out of date before the ink is dry because once you define Generation X they have an uncanny knack of changing. Understanding their core values will help the Tories to predict these changes and connect with Generation X, a generation that is coming of age and reaching positions of economic and political influence.

To read the full article see The Telegraph

Baby Boomer marketing campaign on steroids

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Marketers have long identified that Baby Boomers are attracted to products endorsed by celebrities. Louis Vuitton the French fashion design house has outdone itself with their current “where will life take you” marketing campaign. The list of celebrities is impressive with no less than Stefi Graf & Andre Agasi, Mikhail Gorbechev, Catherine Denevue and Rolling Stone’s guitarist Keith Richards all fronting the face of the campaign! “Countless Emotions…countless journeys” Louis Vuitton also tugs on the emotional heart strings of Boomers living life to the fullest and there is even a hint of nostalgia as all the celebrities are of yesteryear. Great campaign…if you are a boomer! Not sure how many Generation Xers this ad campaign will appeal to but I can’t imagine many and yet I’m sure that as Generation X approaches the heights of their careers (the oldest of the Gen Xers are nearly forty) they would form a large proportion of LV’s target audience.

Have a look at the campaigns micro site by following this link to the Louis Vuitton
site
and then click on the LV core values film

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A lesson from politics…

Obama and ClintonPolitics in America is hotting up and I’ve been curious to note that with all their charisma and pedigree the Clintons have started falling behind and even though Hillary did rally in New Hampshire primary they still trail Obama. Now I’m not into politics but what did interest me was what John Sviokla had to say on a new post in Harvard Business. He has identified that Hillary Clinton and Barack Obama treat their supporters differently. Clinton considers her backers as “customers” while Obama sees his supporters as “members”

For example, Sviokla points out that their two web sites differ radically. On Obama’s you received “points” for each activity you do such as creating a profile, making your profile public, logging in, or befriending a link and you can “climb” this social/political ranking by engaging more–hosting events, linking to others, raising money and many other forms of participation. To anyone in the MySpace/Facebook generation this type of functionality is expected. In contrast, joining the Clinton web site gives you an identification tag like TZ3QQ7, so that any donations can be tracked – sounds just like the old style “frequent purchaser” numbers that everyone from CVS to American Airlines uses.

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Boomers Turning 60 - coming into their branding prime

Boomers are variously defined as those people born from the mid 1940s to the mid 1960s around the world. Most researchers use the end of the Second World War as a reference point, which means that as of 2006, this group of people has started to turn 60. They are not old, though. Don’t be confused about that. This demographic tidal wave will have a greater effect on institutions and businesses than the aging of any previous generation. Because of the size and spending power of the boomers, mature values and trends will dominate marketplace realities.

The Chief Marketer recently put out a list of 5 ways in which the Boomers will continue to shape the marketing and branding landscape. Here is what they said (from author, Brent Green):

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The 22 major factors that will shape the future of customer loyalty

I picked this up recently. I think it is a year old, but still good info.

My reference says it is by Peter Clark (co-author, The Loyalty Guide) and was sourced from The Wise Marketer

While we must look into the past to find out why customers defect, stay loyal, or advocate a brand, we also need to see changes coming. Here we detail the 22 major factors that are set to shape the future of customer loyalty programmes around the world…

In this article, we’ve drawn guidance and data from the 36 chapters of The Loyalty Guide Volume II (May 2006, Wise Research), to offer practical insights into the technological developments, market trends, business strategies, and behavioural shifts that will define and shape successful loyalty initiatives up to 2010. We have purposely kept our focus on practical developments rather than merely expounding theory.

Paradigm shifts have a nasty habit of turning up just when they’re least expected… The most obvious way of predicting future trends is to examine what has happened so far and then make projections from that. But that is fraught with danger because paradigm shifts have a nasty habit of turning up just when they’re least expected. Who would have predicted even ten years ago that the mail and the fax would have been relegated to the extent that they have by e-mail? And with the rapid growth of spam and online fraud, e-mail is already getting much harder to use for reliable customer contact. Another shift is already overdue.

Some of these factors we discuss here are already known to loyalty marketers, but their importance in shaping the industry means they shouldn’t be dismissed from our attention when planning ahead. But others are new and perhaps even surprising, and are likely to become the key points of differentiation between loyalty programmes that succeed and those that don’t.

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The Airbus A380 is delivered - but will it deliver?

Singapore airlines Airbus A380The long awaited monster passenger plane, the Airbus A380, is now ready for delivery. In fact, Air Singapore today took delivery of their first plane with much pomp and ceremony. Read about it here at the international airlines news, and read about the financial details at Forbes.com.

Some people have said:

  • The plane is too late - the market has moved on, and there won’t be enough orders to pay for it.
  • Given the delays and increases in development costs, they need to sell almost double the estimated number of planes to turn a profit.
  • Its unlikely the market will be able to absorb the additional planes they need to sell.
  • The plane will become obsolete before they sell 400 units.
  • The plane is too big - no-one wants to fly with that many people.

In fact, these things were all said of the Boeing 747 when it was introduced to the market in 1970. Some people are saying very similar things of the A380 today. They have obviously not looked at the past and learnt from it. That’s a problem everywhere today, isn’t it?

Generation Y: Its life, Jim, but not as we know it

First Published in Marketing Mix Magazine (2001)

STRAP: The age of the customer

I dont remember Apartheid, but I know all about AIDS. I dont care who won the Cold War or wonder who shot JFK, but I know the answers are just a click away if I need them. I was weaned on a diet of mass media and massive choice, and I know how to use both to my advantage. I am Generation Y. And if you want me to listen, you have to speak my language.
By Kim Penstone & Graeme Codrington

The age of the customer is upon us. Never before have customers had so much choice, and so much information at their disposal to influence this choice. Never before have they had the confidence to use this power to control the companies that cater to them. And never before have they had the extent of power that they have today. Until, of course, tomorrow.

Because future generations will have access to even more information than we have today. Generation Y will be wired to the hilt, capable of absorbing and processing information more quickly and efficiently than any generation before them. And they will have both the confidence and the power to use this information to build or destroy brands at the click of a button.

Continue reading ‘Generation Y: Its life, Jim, but not as we know it’

CO2 Neutral products are becoming “fashionable” but are new product launches enough to target the “ethical consumer”?

ibuyeco, a new eco-friendly car insurance scheme that offsets 100% of customers’ CO2 emissions for the duration of their policy, was launched in the UK at the end of April 2007. The company has just started a strong above the line advertising, including television and other national media.

Created by the Budget Group, one of the UK’s leading insurance intermediaries, ibuyeco is one of the first car insurance products to offset 100% of a car’s carbon emissions. Customers pay an additional amount to their premiums. Payments are calculated on the type of vehicle and the estimated mileage, details provided by customers. Using this method, the typical family car travelling a mileage of between 10,000 and 12,000 would require an offset fee of roughly £20, for example. ibuyeco buy carbon credits through The Carbon Neutral Company who in return puts the money towards projects that reduce carbon emissions. These projects fall into different categories including: increased energy efficiency, forestry projects and renewable energy, and are based in both the UK and overseas.

The launch of ibuyeco is the result of a social trend that TomorrowToday has been researching for sometime and which we are calling the “rise of the ethical consumer”.

In November 2006 Barclays announced the first carbon neutral debit card and we’re expecting a large number of companies to follow ibuyeco and Barclays. The important issue though is, are these companies jumping onto the global warming marketing bandwagon or does carbon reduction form part of the company’s values and long term strategy? Another question is why did Budget need to launch a new company and why doesn’t it position the Budget brand as an ethical brand? Hiding behind a new brand for marketing reasons will not pay dividends unless the company itself changes.

When it comes to targeting the “ethical consumer”, made largely out of Generation Y, companies had best practice what they preach. If they don’t, this generation who is highly connected via the web will spread the word and ruthlessly weed out the pretenders.

Companies need to do more than launch new products and advertising campaigns professing to support initiatives that reduce global warming. Companies need to be taking steps towards reducing their own carbon emissions and communicating their efforts, in carbon friendly ways! Carbon reductions need to be part of the company’s day-to-day strategies and way of work. It has to become integrated into the company’s culture and demonstrated in a number of ways, from the way they employ recruits to how they run their meetings and sell their products. There is no point a company asking consumers to buy its product so that they, the consumer can contribute to carbon emissions, when the company itself is contributing to carbon emissions by making clients fill out massive application forms and accept loads of marketing mailings.

Our advice to companies thinking about targeting customers using carbon reduction schemes, is to first integrate carbon reductions into the fabric of their company’s culture before they launch new products. The new ethical consumer will buy from your company because of who you are (your company’s values) and not because of what you sell.

What’s Your First Impression

You only get one chance to make a first impression. The old cliché could not be more true, or more important, in a world where we compete constantly for customer’s attention and connection. Dr Graeme Codrington looks at some first impressions you may not be considering, and suggests that this is so important that it should be a top strategic priority.

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Sprint-Nextel fires 1,000 clients

I heard on the news today that Sprint-Nextel, America’s third largest mobile phone service provider this week terminated the accounts of its 1,000 most annoying customers. It said in the notification to these clients that they were being terminated because they phoned the customer care centers too often - on average about once a day - often the same issues, and mainly with dumb ones (this isn’t what they actually said, but it’s what they meant). They have waived the termination fees, and given the people a month to change service provider. Read the press release here.

Can a company choose its clients? We believe absolutely it should!! We talk often of talented staff. But what about talented clients? What about ROC - not return on capital, but rather a return on client? The mindless pursuit of any customer by any means at any price is ludicrous. We predict that more companies will become selective about the customer base, and maybe put in place “customer performance contracts”…

Watch this space.

Tesco trains their staff in generational talk

Tesco logoOlder supermarket workers, at Britain’s Tesco, are being given a guide to youth slang to help them understand younger colleagues and customers, in the form of a pamphlet handed out to staff. The pamphlet is being tried out in some of Tesco’s 1 500 stores with a high proportion of employees over retirement age.

Key phrases in the guide include:

  • Bad: Good (but this can also mean bad. When in doubt, just nod).
  • How’s it hanging?: How are you today?
  • Laters: Cheerio, goodbye.
  • Minging: Ugly, unattractive.
  • Phat: Wicked (in the good sense), cool.
  • Slammin’: Pleasing to the eye.
  • Talk to the hand: I’m not listening.
  • Wack: Weak, boring.

A Tesco spokesperson said: “It aims to help bridge the generation gap and offer a guide for older members of staff looking to chat with younger colleagues and customers.”

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In flight education - consumer value shifts

A nice innovation is being experimented with by Air France, JAL, Singapore and Virgin airlines. They will now be offering in-flight language tutorials on selected routes, helping passengers to learn a few key words and phrases of the language of the country of their destination. This is based on an interactive audiovisual language program developed by Berlitz, the company that supplies many in-flight entertainment screens. The system currently supports 23 languages.

This is an example of a massive trend - consumers are demonstrating a value shift from passive consumption to mastering skills. The smartest companies are offering their customers the opportunity to add to their skill set, not just consume a service or product.

Get your daily Joost

Joost is the new internet TV concept being developed by highly successful entrepreneurs Niklas Zennström and Janus Friis, the founders of Skype which they sold to ebay for $2.6 billion cash!

Joost pronounced ‘juiced’ is an interactive software for distributing TV shows and you will be able to watch whatever you want, whenever you want. Joost has signed up providers like MTV, National Geographic, The Soccer Channel, Warner Brothers Music and IndyCar Series and by the sounds of it FOX TV will soon be a partner.

Joost stands to revolutionise marketing and the way in which we watch TV. Have Niklas and Janus done it again? I have to wonder how much they will sell Joost for, it definitely appears to have all the right ingredients to be a huge success.

There is speculation that the launch is scheduled for 1st May 2007, but as clever marketers Joost is letting the internet community speculate and blogs have been set up to monitor the “countdown!”

Joost itself is not revealing when they will go live, but you can leave your email details with them and become part of their community and be amongst the first to receive the software.

Go to www.joost.com and sign up. You need to get involved in the joost community so that you can get an invite code from a community member. This invite is required before you can download the software – another clever marketing trick…Joost is getting future clients to engage with the brand on a number of different levels. There are hints on how to get an invite!! Sign up and watch out for the launch and get your daily Joost!

Dean van Leeuwen is a TomorrowToday UK partner and expert on talent, innovation and business connectivity

Cheeky companies with happy customers and even happier bottomlines!

CrowdEvery business has customers who are convinced they can design a new product that is better than the product they are being sold. So the question is why not let them? Crowdsourcing is a new and innovative research methodology that allows customers to help design the products they want online. It’s a methodology that is saving companies thousands of pounds on research bills and is proving highly effective because customers are getting the chance to mould and shape the products they are going to be buying. And because products are not being designed by remote head office R&D teams the chances of product flops are greatly reduced.

MIT’s Sloan Management Review recently published a paper, written by Susumu Ogawa, a professor of marketing at Kobe University in Tokyo, and Frank Piller, a professor at TUM Business School in Munich, on the concept of crowdsourcing. This is how these two professors put it “Forecasting the demand for new products is becoming increasingly difficult in many markets. But collective customer commitment (crowdsourcing), a new method to decrease the flop rate of new products, offers a solution by integrating customers deeply in the innovation process and asking for their commitment to purchase before development is finalized and manufacturing starts.â€?

Incredible, can you imagine the benefit in cost savings of getting your customers to design the products they want and then getting them to pre-order the product before it’s manufactured? 

This really is harnessing the power of the “connection economy!�

Continue reading ‘Cheeky companies with happy customers and even happier bottomlines!’

The Luxury Touch

In Strategy+Business, recently, there was a great article on “The Luxury Touch” by by Robert Reppa and Evan Hirsh. They suggest four things that luxury brands have to consistently get right in order to differentiate themselves from the also rans:

“Although there’s no single process for achieving high levels of customer satisfaction, four principles are common to nearly all top-performing luxury brand companies:

  • They create a customer-centered culture that identifies, nurtures, and reinforces service as a primary value.
  • They use a rigorous selection process to populate the organization with superior sales and support staff. The impulse to care about accommodating customers cannot be taught to people who are not predisposed to it.
  • They constantly retrain employees to perpetuate organizational values and to help them attain greater mastery of products and procedures.
  • They systematically measure and reward customer-centric behavior and excellence in sales and service to enforce high standards and reinforce expectations.

When these four principles are at work, the result is a highly integrated business model that combines a superior product line with outstanding sales and service quality, driving strong growth and profitability in the process.”

Read the full article here.

What’s changed in advertising - Shelly Lazarus speaks

As the most powerful woman in advertising, and one of the most powerful business women in the world, Shelly Lazarus, CEO of Ogilvy & Mather, is someone to listen to. Recently, in a variety of different interviews, she reflected on her 35 years in the industry.

Her most recent personal intervention in the advertising industry was to oversee a campaign for Unilever’s Dove Cream Oil body wash, that culminated in a 30-second spot flighted during the Oscars. The ad was a screening of the winning entry in an online contest in which consumers were invited to create their own advertisements (see some of the entries - and some spoofs - on YouTube). This follows on from Dove’s award-winning campaign, “Campaign for Real Beauty”, that featured ordinary-looking women (see example at YouTube) and departed from conventional notions of beauty and beauty advertising. Unilever has also established a “self-esteem fund” - a worldwide campaign to persuade girls and young women to embrace more positive images of themselves.

The advert screened at the Oscars captures something of the spirit of advertising today, with its combination of old and new media, consumer-generated content, social software and an effort to engage the consumer rather than simply push a product.

Continue reading ‘What’s changed in advertising - Shelly Lazarus speaks’