A Brand (new) World - Part 1
Diageo & IKEA share their thoughts on what a brand marketing strategy must include
From its unique position of working with many of the world’s leading media owners, agencies and brands, Kantar Media is exposed to different views and perspectives on key industry challenges. Eric Salama, Kantar CEO, recently sat down with two of the world’s largest consumer brands – Diageo and IKEA – to debate some of the emerging issues.
Eric Salama, CEO, Kantar
Vala Magnadottir, Global Paid Media Leader, IKEA
Jerry Daykin, Head of Global Media Partnerships, Diageo
In this first of two articles, we will look at the new frameworks brands have in place, and the role each media plays within them.
Consumer Engagement Frameworks
Because consumers receive brand messages in a range of new ways, marketing departments can not only challenge their thinking but also how they allocate spend to deliver the optimal media mix. A consumer engagement framework, adopted by companies like IKEA, is one example of how brands are responding. This extends beyond the channel (paid, owned or earned media) and the platform or device, towards a deeper understanding of the consumers brands are trying to reach:
“It’s a way of working, bringing together different media specialisms including CRM, loyalty and digital, to ensure we’re allocating money in the most effective way and delivering the best outcome for our business.”
The framework of course is the starting point – IKEA wants to empower local teams with the tools to follow the framework in a methodological way to ensure that, at a market level, investments are gaining maximum returns.
A Mixed Media Economy?
Jerry Daykin is part of Diageo’s global centre of digital excellence, a team tasked with driving the wider digital and strategic transformation of Diageo. Jerry’s appointment signalled a real need to work with the business to tackle some of the biggest challenges in the media supply chain, and ensure media can remain a trusted force for good within the business.
“We want to see the return on our media investment and whilst we need to understand how each channel and platform contributes, it’s ultimately driving our understanding of how media extends the reach of our messaging.”
Partnerships are a great testbed to uncover opportunities to use new media channels to extend reach, particularly digital platforms that provide global coverage.. For example, Diageo’s Smirnoff brand partnered with Spotify earlier this year to create the #EqualisingMusic partnership that launched on International Women’s Day.
According to Jerry, this is “the perfect example of how digital marketing can be powerful, brand building and impactful but ultimately still a great consumer experience when we all work together to make the chain work.”
No one size fits all: The role of each media
IKEA is, by its own admission, a mass brand, so must build media plans that reach a large consumer base and deliver impact for the brand. In turn, each media needs to deliver insight to help meet that need, as Vala explains: “We know that TV is an excellent brand builder – it continues to maintain a large reach and can have mass impact. Understanding how TV can help us plan and reach a large consumer base is very important.”
Established media forms like TV and radio remain resilient and marketers need to consider how offline media can drive consumer activity online. In Kantar Media’s 2018 DIMENSION study, 96% of consumers sampled across five of the world’s largest advertising markets said they continue to access television through a TV set, and 88% said they still listen to radio offline. For a mass brand like IKEA, this audience is essential.
Vala points out, “We need mass impact for our business to demonstrate how our home furnishings solutions contribute to a better life at home. Radio and TV are good reach vehicles and continue to deliver this message to our customers.”
Out-of-home also delivers great returns for IKEA. For instance, where outdoor advertising is placed on congested “hotspots” in high car traffic cities, the opportunity to increase frequency and instil the brands value proposition could be deemed advantageous. Indeed, IKEA recently announced that in an effort to increase sustainability, the company will be mailing fewer catalogues to consumers—and applying the financial resources to its first national out-of-home push in the U.S.
Whilst each media has its distinct benefits, Vala recognizes “all media isn’t equal – we need to be respectful of the differences and measure consistently.”
Seeking The Optimal Media Mix: The Importance of Partnerships
As audience consumption habits change and integrated brand campaigns become the norm, seeking the optimal media mix continues to weigh heavily on the minds of brands and their agencies. Brands are re-discovering how established media forms can work alongside new techniques in imaginative ways.
Diageo has found that programme sponsorship and traditional forms of marketing continue to be successful, but Jerry argues that the industry needs to create space to do more. He says “We need to look at media’s role in the broader consumer experience we’re working to deliver […] Partnerships with media owners form an important part of that; we use commissioned brand tracking studies too, to take elements of our media strategy and develop growth drivers from them.”
New techniques to reach consumers are welcomed by IKEA too, although there’s still work to do to scale them to demonstrate media effectiveness alongside established media forms. According to Vala, “Brand partnerships show great potential  as means to explain the complexity and depth of our offer. There’s some way to go to ensure these means  are conveying our message to our customers.”
The DIMENSION study uncovers how new media forms, including smart speakers and wearables are impacting conventional advertising. Download the report
Vala Magnadottir is Global Paid Media Leader at IKEA and deeply involved in the brands consumer engagement framework.
Ikea’s vision is to create better everyday life for the many by offering well-designed home furnishing products at prices that as many people as possible will be able to afford them. There are 385 IKEA stores with over 150,000 co-workers in 48 countries.
Jerry Daykin is Head of Global Media Partnerships at Diageo joining in 2017. He leads the brands global relationships with a range of media partners.
Diageo is a global leader in beverage alcohol with a collection of brands across spirits, beer and wine categories sold in more than 180 countries. Brands include Johnnie Walker, Crown Royal, J&B, Smirnoff, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.