Marketing cues can influence the neurobiology underlying our feelings and behaviour.

People commonly assume there is an airtight boundary between the psychological impression created by marketing campaigns and consumers’ actual, empirical experiences of products or services. However, a growing body of research suggests that marketing’s influence can co-opt our senses.

A 2008 study led by Hilke Plassmann used fMRI (functional magnetic resonance imaging) scans to show how the stated price of various wines affected brain activity at the moment of consumption. The price tags presented were deliberately falsified—a $5 wine, for example, was identified as costing $45—yet the drinkers’ brains couldn’t tell the difference. The price cue, not the objective quality of the product, predicted people’s level of enjoyment.

Researchers call this the marketing placebo effect (MPE)—a behavioural and/or physical change produced by marketing alone, totally separate from the product itself. And it’s not limited to wine. Ziv Carmon found that people were worse at solving puzzles if they were told they’d consumed a discounted energy drink, as compared to a full-price one. In truth, all participants drank the same beverage. Pierre Chandon found that young men under the false impression that they’d consumed a cocktail laced with Red Bull reported feeling more inebriated, and acted in a more uninhibited manner, than those believing they’d drunk the same concoction minus Red Bull. 

To delve deeper into how MPE works, we recently revisited the fMRI wine experiment using a newly developed statistical methodology. Our findings have now been compiled in an article for Scientific Reports (co-authored by Vasilisa Skvortsova of École Normale Supérieure de Paris, Claus Kullen and Bernd Weber of University of Bonn). Specifically, we wanted to know which areas of the brain are most active in translating marketing cues into taste experiences, and thus cause MPE.

An unconventional wine tasting

The wine-tasting part of our study followed the format of its predecessors. Thirty participants—15 women, 15 men—were put inside an fMRI scanner with a tube inserted into their mouths, through which wines were piped, one milliliter at a time. Subjects sampled three red wines in total that they were told cost €3, €6 or €18; all three wines actually retailed for approximately €12 per bottle.

As with the previous studies, the placebo effect predominated in our results. Even when the exact same wine was served with different stated prices, participants said they could taste a difference that corresponded to price difference. The fMRI scans showed that participants’ taste ratings were based on an organic response reflected in brain activity, not second-guessing or dissembling.

Earned vs. unearned rewards

The new study builds on past work through the addition of at least three elements designed to illuminate the causal mechanisms of MPE. First, we asked participants in some trials to pay for each sample of wine with money that they had earlier earned based on their performance in a perceptual learning game. Unbeknownst to the participants, the game was adjusted for skill level so that each participant won the same amount: €45.

In the end, it didn’t matter whether the wines were free or participants had to pay the stated price out of pocket. The placebo effect showed up to the same extent in both cases. This finding seems to suggest that indulgences such as luxury goods are not, in fact, sweeter when we feel we’ve earned them. The pleasure we derive from them appears to be defined more by external cues (e.g. marketing campaigns, brand images, the exclusivity implied by high prices) than by exchange value per se.

Where the placebo effect lives

The second additional element in our new study was a multilevel statistical analysis that produced further insight into the neuroscience underlying MPE.  We concluded that the BVMS—the brain’s valuation and motivation system—is a causal contributor to the placebo effect. The BVMS, composed of the ventromedial prefrontal cortex and the ventral striatum, assigns subjective value to things around us and determines how motivated we are to approach them. The ventral striatum is also known as the motivation centre of the brain, i.e. the brain’s chief “dopamine dealer”.

In addition to the BVMS, brain areas associated with cognitive regulation—specifically, the anterior prefrontal cortex and the dorsolateral prefrontal cortex—were also seen to play a major role.

More research is needed to ascertain how these regions interact to convert marketing cues into sensory experiences. One possible theory is that the BVMS activates regard for a product’s value, as well as blind faith in its desirable qualities, while the cognitive regulation centres choose from an archive of pleasurable memories to crystallise the enjoyment.

Individual sensitivity

The third additional element was a monetary decision-making task designed to activate the BVMS. In a separate part of the experiment, participants were offered the chance to win real money by finding a circle in one out of a varying number of boxes displayed on a screen—the more boxes that appeared, the smaller the chance of winning. We could measure each player’s BVMS sensitivity, i.e. his or her receptivity to monetary rewards, via his or her neural responses to the ups and downs of the game. Of course, the vast majority of us enjoy receiving rewards, but some people’s enjoyment is especially intense.

Our findings showed that participants whose BVMS lit up “like a Christmas tree” when they won money also tended to display the strongest placebo effects.

The responsibility of marketers

As marketers refine the customer journey, they could explore ethical ways of leveraging the brain’s tendency towards self-fulfilling prophecy. For example, incorporating language or imagery intended to stimulate desire for a reward—any reward, not necessarily something tied to a product—may make customers’ experience of said product more pleasurable. Presumably, triggering the placebo effect could lead to more favourable word of mouth, online product ratings and reviews, etc.

However, product quality can’t be completely ignored. A recent Journal of Marketing Research study led by Ayelet Gneezy (of University of California San Diego) showed that MPE works only for products of decent quality. With shoddy goods, high prices backfire and the glaring dishonesty draws consumer ire.

Written by Hilke Plassmann, INSEAD Associate Professor of Marketing, and Liane Schmidt, INSEAD

This article is republished courtesy of INSEAD Knowledge. Copyright INSEAD 2017

Inspiring and smart solutions featured in the 2018 edition to help customers make room for life in the heart of their home

IKEA, the Swedish home furnishing retailer, has officially launched its highly anticipated 2018 Catalogue, packed with home furnishing products, ideas and offers inspiring people to make room for life at home. IKEA Catalogue, the most widely distributed book in the world and produced in 35 languages, is now available in the UAE.

The contents of the 2018 edition reflect a change in the way people use their living spaces in the wake of urbanisation and new technology. Through its extensive consumer research, IKEA has now identified the living room as the heart of everyday life at home across the world, where it has become a place for connecting with family and friends, celebrating special occasions and a room that is more personalised than ever before.

Vinod Jayan, Regional General Manager – IKEA UAE, Qatar, Egypt and Oman said, “The world has seen more change in the home in the last twenty years, than it has in the last 200. Urbanisation and technology have reformed our lives and our homes, creating a huge opportunity to redefine the living room. Regardless of people’s living space, 2018 is about enabling you to make more room for the things you love in life and to help you get a few steps closer to your dream home.”

This year the catalogue demonstrates ways to improve life at home at affordable prices, meanwhile helping customers to plan their purchases with a focus on their living space. From stretching a room to be as flexible as possible to creating a living room where kids can be kids, the catalogue is packed with ideas and inspiration to be applied throughout a home.

As the living room has become the heart of the home, IKEA has paid particular attention to the sofa, launching seven more styles or ‘families’ to its existing wide range, designed with the evolution of changing lifestyles in mind. It has also launched six new sofa ‘families’ with a focus on smart storage solutions.  The VIMLE family represents clever design in abundance, as sections can be added to it, changing its shape and size, therefore allowing for many different possibilities appealing to a variety of customer needs. There is an abundance of new product arrivals for customers to browse at leisure, complementing some of the core iconic products that remain strong favourites time and again.

Commenting on the catalogue format and customer experience, Vinod Jayan said, “We are always looking for ways to ensure our customer’s experience with us, even before they step through the door, is seamless. We are really excited to share our smart interior design and clever storage through our new improved printed catalogue as well as the app which is intuitive and user-friendly.”

This year the printed edition invites its owner to scribble on the spine, personalising the sentence ‘make room for...’. The app then complements the printed version keeping it fresh all through the year and contains additional video content that brings the pages to life.

True to its ethos, the 2018 edition is also full of features and content that not only provide inspiring design and solutions but also share tips and information on how to live ‘green’ - whether it’s choosing sustainable food to cook at home or buying energy-efficient products.  Some of the key products that embody the IKEA ethos include the KUNGSBACKA units, its first kitchen cabinets to be made entirely from recycled plastic bottles and reclaimed industrial wood, as well as the new ODGER Chair which is made from 70% recycled plastic and 30% renewable wood.  

Vinod Jayan concludes, “At IKEA we want to have a positive effect on the planet and people, and are truly passionate about it in everything we do. We hope that through the IKEA 2018 Catalogue we can educate our customers on how to do that easily at home to have a powerful effect.”

God-is Rivera has been promoted to director of inclusion and cultural resonance, a newly created position at VML.

Rivera has been a vital part of the evolution of VML’s Inclusion & Diversity committee. Being a black woman in the advertising industry has prompted Rivera to pursue her passion of highlighting the imperative need for greater diversity within the industry. In 2016, she joined VML’s social media practice, and has since pushed for a wide range of perspectives both within the work and across the agency.

“There is nothing more important to us as a VML family than ensuring all VMLers have the opportunity to thrive in a diverse and inclusive workplace. And that our client partners can experience the level of perspective in our work that results from that type of agency,” said Jon Cook, global CEO. “God-is has been making this type of impact in her work across VML since the day she started. But it became clear that we needed to formalize and expand this as a new, official role to truly continue the momentum and needed progress we want as an agency in this critical aspect of our culture and capability. I could not be more excited about the role and about God-is being the one who embodies it.”  

Rivera will focus on enriching an atmosphere of inclusion at VML, from internal communication and education efforts to building partnerships in the communities our offices serve. She will also continue to stay connected to client work.

As a member of the HR team, Rivera will:

•    Focus on expanding the foundation and spirit of inclusivity in our internal culture and offices so employees feel safe, comfortable and open to learning about, considering and supporting diverse perspectives. 

•    Examine and expand hiring practices — from researching diverse talent pools and sources to developing programs aimed at increasing diverse candidates. 

•    Create and shape practices and methodologies that ensure inclusion within our work and outputs.

Rivera recently led “Woke, Lit & Ready,” a presentation that explores the immense influence Black Twitter has had on American culture, for several audiences including the Social Media and Diversity Steering committees of the American Association of Advertising Agencies (4A’s). She is spearheading a panel on the topic at Advertising Week NY on Sept. 26.

Rivera is also one of three finalists for this year’s AdColor Change Agent award and was featured by the 4A’s in “Beyond the Brief.”

So a couple of weeks ago I sounded off about Facebook’s plans to enable sound automatically in its New Feed. I suspect my reaction is not that unusual and that advertisers still need to think about how their video is going to communicate without sound.

It seems odd to be writing about how to make silent videos more effective at a time when some of us are learning how to use verbal commands with devices like Alexa, but billions of people are still spend time watching video on Facebook. This is a huge opportunity for advertisers if they can tailor their video to engage people’s attention quickly and still deliver a compelling impression without the help of voiceover, music or sound logos.

Last year Digiday reported that of the 8 billion daily video views on Facebook 85 percent were viewed with the sound off. And my suspicion is that this proportion is going to hold good even now. Turning the sound off in the app may not be easy but after the first unpleasant surprise blast, my bet is that many people will be motivated to figure it out. What evidence do I have that this will be the case? Well, funnily enough it comes from the nice people at Facebook. Early last year a post by Facebook Business stated,

“In mobile-feed environments, people prefer having the choice to opt in to sound. Our research found that when feed-based mobile video ads play loudly when people aren’t expecting it, 80% react negatively, both toward the platform and the advertiser.”

But, of course, that research is over a year out of date now, things must have changed right?

So what do advertisers need to do? First off, not simply running your TV execution is the News Feed. Our research finds which a cheap option it is risky, many repurposed ads simply bomb. And guess what? Facebook Creative Shop agrees that ad recall is stronger when the creative is tailored specifically for mobile and are busy helping advertisers turn TVCs into effective mobile videos. Better yet, advertisers should consider whether to use sound at all and create soundless video bearing in mind these three findings from our research:

Grab attention immediately.

You have less than three seconds to engage people’s attention. What is going to be the cue or trigger that gets people to stop scrolling and look at your video? It could actually be that your brand is compelling enough to get that attention on its own.

Work with the mobile mindset

With sound off people pay more attention to visuals so work hard to maintain interest. Those overhead videos from Tasty have a horrid fascination in part because they are speeded up and you know the pay-off is coming soon.

Use captions wisely

Facebook’s internal tests show that captioned video ads increase video view time by an average of 12 percent but do not reply on them for communication, make sure the action delivers the impression and features the brand.

Whatever you do with your video, remember, people appreciate brevity, keep it short. And if that sounds like a huge challenge and you are not sure your video is going to work well, remember, we can help check it out ahead of time. 

Written by Nigel Hollis,Executive Vice President and Chief Global Analyst at Kantar Millward Brown.

MENA public relations pioneer recognised among ‘Top 50 Game-Changers of PR’ in global ranking

Cicero & Bernay founder Ahmad Itani only MENA PR leader inthe PR News globallist

Ahmad Itani, COO of UAE-based Cicero & Bernay Public Relations (C&B), has been recognisedin PR News’ globalranking of the ‘Top 50 Game Changers of PR for 2017’. C&B is the only PR agency from the MENA region to appear on the list – a global ranking which celebratesindividuals who have been accelerating the expansion and growth of brand communication across the world. Theglobal PR community has been posting its nominations since last spring and the final selections were made recently by the PR News editorial team.

Ahmad Itani commented: “It is both a great honour and a great responsibility to appear on this list – not only to be representing the MENA region and to rank among global PR powerhouses, but alsoexciting to be charged with continuing to making a real difference in our industry –locally and globally. To do this, I believe it is now more crucial than ever for PR professionals to anticipate where the industry is going andto ensure that they are equipped to take on the future. This involvesadopting global trends and then adapting them not only to the local market but also to each client. At C&B, we believe in answering the distinct business objectives of every account; one size no longer fits all.” 

With the digital era continuing to change the face of PR, the selection criteria applied by PR News was comprehensive, encompassing both traditional and new-age methods – from an individual’s mastery of traditional PR skills to a command of social media, data and analytics, visual storytelling, influencer marketing, SEO, content marketing, and advertising. The list honoursindustry pioneers who areinnovating and pushing the boundaries of brand communication to new heights, including leaders from top global companies such as IBM, Pinterest, and PWC.

Ahmad Itani added: “At C&B, we have keptabreast of the rapidevolution of our industry by launching dedicated digital and brand outreach programmes, and by becoming the first public relations consultancy to launch an influencer communication division – ‘See & Be’. ”

Under Ahmad Itani’s leadership, C&B became the first organisation in the region to adopt new-age communication tactics includingdigital outreach, experiential activation, thought leadership, and content amplification. C&B similarly took the lead in extending beyond traditional media to reach out to new contributors including bloggers, and beyond the UAE to enhance its MENA network capabilities via strategic affiliations in 14 markets. The agency will have offices across 16 markets by the end of 2017, giving it an unrivalled regional footprint. 

The agency celebrated another regional first when it was awarded three golds at the Middle East PR Association Awards 2016 for ‘Best Government Communications’, ‘Best Use of Sponsorship’ and ‘Best Employee Engagement’, also being shortlisted for seven categories and winning a silver for ‘Best Corporate Reputation Management’. 

C&B’s pioneering attitude reflects the vision and growth of Dubai itself, which is underpinned by an ambitious pursuit of excellence and innovation across all fields.  

Ahmad Itani concluded: “The right stakeholder communication is now an integral part of any business plan. This mandates that PR professionals are more actively involved in helping companies to meet targets and objectives, and inachieving measurable results. PR must be about having a real and quantifiable impact for our clients, not just in terms of reputation but also in delivering a solid return on investment; in fact, this is where the game has changed.”

Just this week Google made headlines when an internal memo distributed by one of its engineers went public.

His opinion on gender equality included this landmine: “Distribution of preferences and abilities of men and women differ in part due to biological causes and that these differences may explain why we don't see equal representation of women in tech and leadership.”

Thankfully, he was promptly dismissed for "perpetuating gender stereotypes,” and violating Google’s Code of Conduct, but the incident highlights a bigger gender discrimination problem.

You can’t spend five minutes online without coming across a piece about sexual harassment or gender discrimination in the digital marketing or technology landscape. Between Uber, Kevin Richards from Saatchi & Saatchi and even Elon Musk’s Tesla, the stories are real and they are alarming.

The advertising landscape in South Africa has only just started to make headway on transformation, with some agencies leading the charge in making significant change to the industry and country.

But, with our day-to-day focus on achieving genuine transformation, the industry - digital advertising in particular - must remind itself to keep an eye on gender disparity.

Consider the following.

This year only 23% of the Bookmark judges were women. There are an alarmingly small number of female managing directors, and even fewer executive creative directors or creative directors. Why, on LinkedIn, you will be lucky to find one woman listed on the first page when searching for digital creative directors.

Now consider the repercussions of the digital industry’s gender inequality on the relevance and effectiveness of the work it does for its clients.

Women provide unique insights and valuable perspectives that are indispensable when it comes to creating truly inclusive work. Collaboration is nothing without diverse viewpoints, and collaboration is a key component in the rise of digital.

But, if there are no women … Our industry has a problem and we all, men and women, need to embrace the ideals of feminism to change the status quo.

Step one would be understanding that equality isn’t just achieved by providing exactly the same to male and female staff, it’s about tailoring our working environments to be personalised to individual needs, providing the foundation for women to be successful.

It’s the opportunity to have a child without it affecting your career, the opportunity to be considered stoic instead of icy, the opportunity to be respected and heard at the boardroom table without being considered ‘bossy’. 

We need to strive to be more conscious, we need to use our position in the industry to make a difference, to empower our women and girls.

We need to address how we can affect change from ground zero. How are we hiring, how are we training, how are we identifying bias, are we paying fairly, what are we doing to move away from the established stereotypes?

And then, of course, the power we have working in advertising is to change perceptions with our work.

As Marc Pritchard from P&G said about that brand’s #SeeHer campaign: “With advertising, we can make gender equality normal. It’s all about your cognitive processing. We’re focused on a mission to make sure advertising accurately reflects women and girls.”

It was gratifying to see gender equality being put firmly centre stage at last year’s Loerie Awards.

Incoming chairperson Suhana Gordhan (Creative Director, FCB Joburg) spoke about the huge challenges she had to overcome to succeed in her industry, as well as those she still faces daily.

I am hopeful she can keep the conversation alive and position the Loerie Awards to be a positive change agent in our industry.

And, I challenge you to consider what you are doing to make a change, at its simplest, to make this an industry you would want your daughters to work in.

As inspiration, I leave you with two quotes. Prince Harry said: “We know that when women are empowered, they immeasurably improve the lives of everyone around them – their families, their communities and their country.”

Actress and activist, Emma Watson, said it differently: “If you stand for equality, then you’re a feminist. Sorry to tell you.”

Written by Robyn Campbell,Managing Director, Hellocomputer Cape Town 

Grey Group has acquired a majority stake in hug digital, a leading independent regional digital marketing agency, based in the Middle East. Founded in 2009 by Oussama Jamal (Chairman) and Tim Baker (Chief Executive Officer), hug digital is one of the largest and fastest growing 360°digital agencies in the MENA region. 

hug digital provides digital campaigns, social media, content, influencer and activation marketing, web and mobile app development, media planning and buying as well as digital research, analysis and social listening.

"Grey Group's acquisition of hug digital enhances our leadership position in the MENA creative and digital space," said Nirvik Singh, Chairman and CEO of Grey Group Asia Pacific, Middle East and Africa. "It underscores Grey's commitment to expand our offering and deliver quality, value-added services to our clients."

Headquartered in Dubai (UAE), with offices in Egypt and India, hug digital employs around 145 full-time staff. Their blue-chip client roster includes more than 70 international, regional and local brands such as Americana (Hardees, TGI Fridays, Krispy Kreme), Al-Futtaim (Al Futtaim automotive group, Toyota, Honda, Lexus), Majid Al Futtaim (Ski Dubai, Magic Planet, iFly, Little Explorer, LEGO), Commercial Bank of Dubai, Dubai Tourism, HMD Nokia, Shell, Festival City Group, Nestle’s Maggi, Clorox, Sarai by MNHD and Emaar among others. 

“We’re very excited about our new partnership,” stated Oussama Jamal. “We are eager to take our digital expertise and knowledge of the MENA region and scale this with WPP and Grey Group. This acquisition will enable us to access resources that will expand our capabilities and accelerate our growth."

As Chairman and CEO respectively, Jamal and Baker will continue to head the hug digital operations whilst working closely with Nirvik Singh to set the overall strategic digital growth plan for the region.

“This deal cements seven years of hard collective work from our dedicated team. We are proud to become part of the world’s largest communications group, WPP, partner with Grey and continue our digital journey with the same enthusiasm as the day we started hug digital,” said Tim Baker.

The acquisition will bring additional benefits to clients of hug digital, including access to Grey Group's offerings in production, GreyWorks; its shopper-marketing agency, Grey DPI; and its highly-regarded creative and design technology company, Vinyl-I. Similarly, Grey Group's clients from across the globe will benefit from the digital technology and local expertise of hug digital.

Susan Glass Ruse Appointed Associate Executive Director of New York Festivals World’s Best Advertising & Creative Communications

New York Festivals®, now in its 61st year, announced the appointment of Susan Glass Ruse to the position of Associate Executive Director of NYF’s International Advertising Awards competition. Ruse, an accomplished creative strategy leader will work in tandem with SVP Executive Director, Michael Demetriades spearheading the global development of NYF’s flagship competition.

Ruse joins NYF after 19 years with HBO where she served as Creative Marketing Executive Producer developing campaigns for many of HBO’s highest-profile films for use across all platforms.

“NYF is thrilled to welcome Susan Glass Ruse, her extensive background in creative marketing, production, and rebranding coupled with her experience working with both clients and A-list talent provides NYF with an arsenal of strategic skills to expand our brand,” said Ellen Smyth, CEO/Partner, New York Festivals.

“I have great admiration and respect for the ongoing legacy of New York Festivals Advertising Awards and all of NYF’s brands,” said Ruse, “NYF World’s Best Advertising is all about appreciating and honoring the work. There’s an infusion of inspiration and enthusiasm from seeing and sharing great work that I have always found really wonderful and now being part of that on a day to day basis…I am thrilled.”

As lead creative on launch campaigns for HBO, Ruse was responsible for the overall creative strategy and tone for promotional campaigns for many HBO Films’ projects including Behind the Candelabra, Temple Grandin, The Normal Heart, You Don’t Know Jack, Taking Chance and for HBO Series such as Last Week Tonight with John Oliver, The Brink and Entourage.

“We’re pleased to welcome Susan to NYF,” said Demetriades, “she brings both creative and strategic marketing prowess, diverse production experience, and client services expertise.”

While at HBO, Ruse also served as field and post producer for all aspects of short and longform a/v marketing from initial concept development and design through post production. During that time, she directed behind-the-scene shoots and conducted interviews with high-profile talent, including Al Pacino, Jack Black, Tim Robbins, Diane Lane, Kevin Bacon, John Goodman, Barry Levinson, Susan Sarandon, Queen Latifah, Tom Hanks, Helen Mirren and many more. 

During her tenure at HBO, Ruse was an integral part of a small team responsible for two network redesigns of HBO’s on-air look, from concept and design through execution of all network elements. Her early years at HBO found Ruse writing, producing and editing branded image promotions, stunts, and theatrical spots.

Ruse contributes an understanding of broadcasting and brands that only a highly respected creative strategy leader/executive producer can deliver. With over 30 Promax/BDA, New York Festivals and Mark Awards she was also the winner of 2 Promax Top Ten Spots of the Year for the Taking Chance Trailer and Soprano’s Farewell Image. The consummate hybrid creative producer/writer/director, Ruse’s track record illustrates a thorough understanding of the creative process and what it takes to be recognized for award-winning work.

In her new role, Ruse will collaborate with Demetriades on the management of all facets of the competition, oversee the strategy to expand NYF’s global footprint, create strategic alliances to benefit both the competition and its entrants, and recruit prominent industry executives to serve on the 2018 Executive and Grand Juries. 

New York Festivals International Advertising Awards will open for entries on October 1, 2017. For more information please visit: www.newyorkfestivals.com

vBrand’s Advanced Machine Learning Platform Will Be Integrated into Growing Nielsen Sports Business for Added Speed and Scale

Nielsen announced it has acquired vBrand, an Israel-based technology startup that has developed a machine learning-enabled platform to measure brand exposure and impact in sports programming. vBrand and its technology will be fully integrated into Nielsen Sports, bringing increased delivery speed and scale to the company’s existing flagship sports products, Sport24 and Social24. Financial terms were not disclosed.

The acquisition of vBrand’s advanced technology supercharges Nielsen Sports’ already industry-leading sponsorship measurement capabilities and methodologies, considered among the most robust in sports. vBrand’s machine learning will significantly accelerate the speed at which Nielsen Sports’ logo recognition and media monitoring technologies locate and calculate brand positions on screen. Specifically, the vBrand technology could allow brands and rights holders to monitor and track sponsorship visibility within hours of an event and make adjustments to digital signage and social campaigns within a tournament, competition weekend or season.

Sports marketing is increasingly important for brands looking to reach consumers in a competitive and fragmented marketplace. With fans reliably tuning in to watch their favorite leagues, teams and athletes, global sports and entertainment sponsorship spend is projected to exceed $60 billion in 2017 alone. Nielsen Sports’ flagship marketing solutions already measure millions of hours of content per year, helping to deliver analytics and insights to more than 1,700 of the top rights holders, brands, agencies and broadcasters.

“This is an exciting acquisition that demonstrates our continued ambition and commitment to our sports clients,” said Howard Appelbaum, President, Nielsen Entertainment. "Bringing vBrand’s technology into Nielsen Sports’ existing sponsorship valuation process will further expand the scale of programming and events it covers around the world. It will also provide timely exposure information, enabling clients to make smarter and faster decisions on sponsorship placement. Nielsen Sports’ brand exposure data and metrics are considered currency in the global sports marketplace, and we’re delighted to strengthen that further with this acquisition.”

"The acquisition of vBrand by Nielsen is a great opportunity to continue our journey and take our offering to the next level,” said Yael Dor, CEO, vBrand. “We are confident that our cutting-edge technology, combined with Nielsen's platform, will extend its leadership position in the market by providing sports marketers with transparency and clarity on sports sponsorship investments."

“We are excited to be a part of Nielsen and empower its sports analytics business with our unique technology of video analytics and deep learning," added Tamir Rubinsky, Co-Founder & CTO, vBrand.

The accelerated growth of vBrand is driven in part by the design partnerships the company has built as an alumnus of the 2016 class of 'The Bridge' Program, a partnership between Coca-Cola, Turner and Mercedes-Benz that is focused on finding leading technologies and creating commercialization opportunities with the three brands.

The Nielsen acquisition is the latest milestone in an already well-established relationship between the two companies, as the Tel Aviv-based vBrand is a graduate of Nielsen Innovate—Nielsen’s early-stage technology incubator licensed by the Israel Innovation Authority (previously known as the Office of the Chief Scientist of Israel).

“Using a slightly different approach to most incubators, Nielsen Innovate mentors and shepherds the companies they back, in addition to providing an investment, with a goal of helping early-stage startups become successful, scalable global businesses,” said Dov Yarkoni, CEO, Nielsen Innovates.

There is a common expectation that Gen Z, the generation born between the mid-1990s and the early 2000s, are just an exaggerated version of millennials.

Do a quick Google search about Gen Z’s behavior and you’ll find definitions such as “millennials on steroids”, and descriptions of people who don’t have a sense of digital privacy.

But Kantar Millward Brown’s recent research reveals that not all these stereotypes are true. Gen Z’s media behavior, attitude towards brands, response to advertising, and motivations are truly unique compared to other generations, including millennials. The case is even more apparent in Indonesia, a culturally fragmented market with one of the fastest-growing internet penetrations globally.

How Gen Z use media

Gen Z are commonly described as digital natives – inseparable from their mobiles. Based on AdReaction, our annual research into people’s media habits and receptivity to marketing, it’s clear that TV remains an important medium to reach them, as they watch TV for about 1.8 hours daily. But mobile is where they spend most of their screen time. On average, Gen Z spends 3.5 hours accessing the internet on their mobile daily – about 13 percent longer than the average millennial.

While most Indonesian consumers are predominantly on Facebook, Gen Z’s social media tastes are more diverse, with an almost equal proportion accessing Facebook, YouTube, and Instagram daily.

But it’s not just about time spent or where they’re spending those hours. In Project Wayang, a series of conversations with consumers across Indonesia, we heard from different generations about their aspirations, values, and daily lives. We learned that mobile is so integrated into Gen Z’s daily lives that it has become a very personal space. Their phone is an extension of themselves, almost as if it were an extra appendage.

There are two important implications of this sense of personal space:

First, ads need to be mindful to not breach that personal space, or they risk a backlash. On mobile, if an ad interrupts or annoys someone, it is likely to generate negative sentiment. This explains why our research shows that Gen Z regard unskippable or autoplay video ads less favorably than other generations do.

Second, and contrary to popular belief, Gen Z places strong value on digital privacy. Our research shows, for example, that most of them are very careful about what they share online. This is partly because their parents are online and on social media as well – something that the previous generations in Indonesia didn’t experience.

So, how do we engage with Gen Z? What kind of advertising would they be more receptive to? In answering this question, we’ll look at two key aspects: using the right content, in the right format.

The right content

The basic rules of great advertising still apply – a captivating story and relevant humor remain the most decisive elements in an ad for Gen Z. But there is more appreciation of visual design as well as good music among Gen Z. In fact, when we asked what made them more likely to pay attention to branded content, visual appeal came out on top.

Oreo’s “Open Up” ad is a great example of how a simple but touching message (open your heart to people that are different to you), packaged in delightfully playful animations with exciting music, is able to climb up to No. 1 on YouTube Indonesia’s ad leaderboard.

Marketers should not only rely on traditional formats though. Gen Z’s attitude is more positive towards content such as tutorial videos and product reviews. A number of make-up brands have gained success by using make-up tutorials, for example. These new types of advertising are less interruptive and offer help and information, which is clearly appreciated by a generation that primarily seeks information online.

Another important distinction is that Gen Z prefers social media celebrities over regular celebrities in branded content. This echoes a fact revealed at the South by Southwest (SXSW) 2016 conference and festival: out of the Top 10 list of influencers Gen Z took note of, nine were social media stars. If the same question were asked in Indonesia, the list would probably follow the same pattern.

The right format

Gen Z is characterized by a shorter attention span than their older cousins. When most Indonesian millennials were teens, the main source of daily entertainment was primetime TV cut down by Dunia Dalam Berita, the nightly news broadcast. This is vastly different to the current Gen Z, who have unlimited sources of entertainment at their fingertips. They are used to paying partial attention to multiple types of content before choosing which one to watch. Thus, while millennials and Gen X – the generation a little older than millennials – prefer video ads to be about 11 to 20 seconds long, Gen Z wants them even shorter.

But that doesn’t mean longer videos wouldn’t work. It’s all about purpose. Without question, grabbing Gen Z’s attention early in a video is paramount, if longer videos want a slice of their time. Another strategy that works well is to tease, using shorter videos to pull them into longer content.

In our global study, we learn that Gen Z’s tech savviness enables them to appreciate formats such sponsored filters and lenses, or more complex ones such as augmented reality. While these newer formats aren’t yet common in Indonesia, the global results present a good opportunity for marketers here to become early entrants.

With technology enabling more targeted advertising, marketers have a larger opportunity to create more personalized content for their consumers. Thus, it is more relevant than ever to be mindful of what clicks with Gen Z.

Source: Kantar Millward Brown