Friday 7 January 2011

Two-way communication channels open all hours (Marketing Week)

Marketing Week joins forces with RAPP, plus international brands Philips and Eurostar, to explore how brands can best use the social media spaceto develop real relationships with real consumers.

The internet, and the explosion of social media networks, mean today’s consumers are always switched on. They are now using their own personal technology to become active advocates - or opponents - of multinational brands.

That means the brands around them have to remain switched on 24 hours a day, seven days a week, 365 days a year, come rain, shine or even (as Eurostar will attest) snow.

Some brands are fearful of this change while others are embracing it. Keith Weed, chief marketing and communications officer at FMCG giant Unilever, has said that given the intense competition between brand owners to connect with customers via digital channels, it will be the innovators that benefit.

The digital edge will be in all areas of digital marketing, social, gaming, search and mobile. And, in fast-growing markets like India and China, mobile penetration will “transform the way companies engage with consumers”, says Weed, with the next 1 billion online users set to come from the mobile market.

Mobile has, without doubt, added fuel to the social media fire. In just three years, the development phase for a new handset has shrunk from 24 months to three. And it will get quicker, says RAPP chief creative officer Rik Haslam.

He also predicts the reach of mobile will extend. The penetration of smartphones in some European countries is already well beyond the 20% tipping point where products and services are deemed mainstream. In Spain, 37% of mobile subscribers now own a smartphone, and in Italy the figure is 33%. The UK’s penetration is 28%, on a par with the rapidly growing US market, according to Nielsen’s Mobile Snapshot report.

As Haslam explains: “The landscape has changed. We are living in a turbulent world. There is turbulence in terms of health, religion, environment, economics and population. But there is also technology turbulence. Never before has technology moved so fast.”

While some brands are embracing the “always on” consumer, many more are stuck at a crossroads. Many have dabbled with digital, but with consumers increasingly connected, are businesses really ready for them? Marketing Week, in association with RAPP, hosted a seminar in London to discuss how brands can embrace the “always on” consumer. Brands Eurostar and Philips joined the panel debate.