 Well ladies and gentlemen for this session we have here with us. Mr. Tim Castree who is the global CEO of wave maker Group M's billion-dollar revenue media content and technology agency obsessed with the customer's purchase. January a Journey Tim oversees a business that is powered by the creativity and curiosity of 8,500 people in 90 countries with over 20 years of industry experience Tim's diverse management experience spans creative media and integrated agencies Prior to joining wave maker Tim was the MD for Vidiologies USA's business where he developed the company's strategy for providing cross-screen media technology solutions for advertisers agencies and Media companies ladies and gentlemen, please give a huge round of applause and welcome. Mr. Tim Castree to please come and join me on stage and the topic of His discussion is generating brand love. Are you really listening to your consumers a very warm welcome to you, sir Excellent Thank you for having me. I'm excited to be here respect to the entrepreneurs and I'm really delighted to be in India, which I read this week is Is by 2020 is going to overtake the the UK Economy so as an Australian that makes me very happy indeed. So Keep going keep going Thank you for having me the the theme of your get-together today is about how we listen more to consumers and what the relationship between listening to Consumers and how that helps you to generate more love for your brands I'd like to take that a step further and say what's the relationship and explore? What's the relationship between generating love for brands and driving a business and commercial impact and in so doing? When we do that what's the role of that in then helping the the CMO and the marketing department to get closer and more Influential in the boardroom which we think is a big opportunity and need for global marketers And so that's where I'd like to take the conversation and it starts with a question that we ask ourselves every day in our Organization on behalf of our clients, which is does your brand have momentum? Click is not working for me unless I'm pressing there up. There we go. Did you do that or did I do that? I'll keep trying we'll see so But context is important and so this conversation Started with the word listening, but the truth is with all the noise in the world today Listening it feels like we're doing less of it and depending on what you read will really determine what you think about the context that we're living in As it relates to brand building so depending on what you read you could think TV is dead or TV is here to stay You could see that there's people who believe in the power and faith of digital and People who think that it represents a corrupt ecosystem, which is adding diminishing value to marketers You could think that content is the answer to all of your questions or content is ruining the internet And so the truth is there's so much noise in Around us today that the context around brand building is becoming more and more and more Challenging our job is to try and help our clients cut through that noise and make better decisions And so I want to I want to explore this in the context then of three big trends That I want to talk about our approach to brand building and the value of it in the context of three trends That are we are all dealing with whether you're the CMO the CEO or wherever you're operated in the business today It starts first with the challenge of short-termism. Thank you second with the battle for attention that we're facing with consumers and third with the intense Disruption many businesses. I would argue all businesses are experiencing as it relates to their own business model So I want to look at that and say then the question we ask ourselves in that context Against that backdrop is how do we cut through the hype and figure out with everything going on? What is the right next thing to do? What's the right next thing to do and? So I'm having real problems with this clicker, which isn't helping again Are you doing that or am I if you're if you're doing it? I'll just put this down and ask you when to move the slide. Is that okay? Thank you What we do at Wave maker and what we ask our clients to do to cut through the noise is to get singularly focused on Consumers and how they make their way to your products. We call that purchase journey thinking We actually call it our purchase journey obsession It's amazing when you get obsessed about something how quickly all the noise falls away When you get singularly focused on what we think is the most important thing Then everything else around that all the noise gets placed in a context Which is much easier to make sense of because the only question to ask yourself is is what I'm doing here helping or hurting Accelerating or slowing down my consumers and how I get my products to them and how I win the battle for attention Among consumers so this obsession with purchase journey thinking is at the clarifying heart of what we do every day When we when we come to work next slide, please It's not just us IBM recently did a study that indicated that 82 percent of what they call torch bearer CMOs That is CMOs that are leading the way in their own industries Focus on journey mapping as one of the principal concerns of their Organizations in marketing and their leadership of those organizations and that compared with 65 percent For all marketers so the leading CMOs are using purchase journey thinking as a simplifying and clarifying way To approach the questions of choice in the world of marketing today next slide, please So let's talk about what purchase journey thinking how it can help us in a world that seems like has become Incredibly obsessed with the short term In fact, McKinsey recently did a study no priceboard has coopers Want to get the correct attribution recently did a study and found that seventy four percent of all companies They would characterize as short term in their thinking Despite the fact that companies that focused on the medium and long term outperform them by 36% on average on a on a compound annual growth basis So the challenge in the disruption of short termism it makes it more important For for marketers for the stewards of brands and the role of brands in the world have a way to cut through that noise and Help us to make decisions in a world that feels like the boardroom has become increasingly short-term focused next slide, please Because we would see that in some ways brands have never been more important to the boardroom Now you will hear the the VP of Global marketing for McDonald's describes how brand is an organizing principle for so much of what goes on in the boardroom It helps us to think about they think about it as a tool for the stakeholder management for corporate social responsibility For for organizing employee engagement. There's so much that gets wrapped around the brand But arguably marketing has never been farther away from the boardroom than it is today in many contexts Next slide, please The language of marketing doesn't help The language of marketing too many CMOs are talking about salience love and loyalty, which is not the language of the boardroom ironically salience love and loyalty are very very important to the economic health of a business But the CEO the board they don't want you to come and talk about love and loyalty They want you to talk about driving economic returns for the business. So while these things matter It's incumbent on us as marketing leaders to up level the conversation and describe Not these things but what these things can contribute to the organization and to the shareholder next slide, please So then is it any wonder in that context when we're out there talking to them about salience love and loyalty That 80% of CFOs Reported they would gladly happily cut expenses like marketing to make quarterly earnings Even if they knew that was going to hurt their long-term performance That's because we're not helping them to understand that with a greater level of specificity in terms of the contribution of those things Like loyalty and love have to do to the company as a whole next slide, please So then the way we help orient then the board in the boardroom around these things like loyalty and love is to describe It much more in the context of the way these things contribute to consumer behavior How is the way people feel about my brand? What does that do have to do with how they behave? Not what they think and feel but how they behave in the marketplace And so focusing on what we call purchase journey behavior enables us to make that link between Intangible feeling based words and actions that are really connected to economic returns next slide, please So when we think about brand behavior, it is really and the value of a brand We think about what's the value of the brand measured by how much it changes consumer behavior In what we call the active decision stage when they're at the shelf when they're on the website When they're talking to a dealer when they're doing whatever they do in that last moment of truth Before they make a decision between you and your competitor What is the relationship between how they think and feel when they come into that come into that environment? What is the relationship between that and the way they behave and make a decision? next slide please and When you cut it down How they think and how they feel at that point when they're making a decision has a huge impact on their behavior Our research shows globally in aggregate now this research has taken place across 450,000 individual purchase journeys that we've studied Across 35 countries and 70 categories that we have looked at over time and what we can tell you It's an average. They won't help your your case and your brand specifically, but we can tell you on average 49% of people have a strong idea Which brand they will buy before they start that process a strong idea? This is not the same as consideration not even quite intent It's a deeper connection and commitment to the purchase that they are going to make and so we think about that we call that You know and that is those associations are built through things like salience loyalty and love through the priming stage That period of time which for most consumers is the time when they're not actually in market for a product It's the three four five years in between when they're buying and thinking about when they need a television and when they're buying their next one What what associations have been built up through that time? Those things are very important and and and we see them as 49% of people going into market with those strong associations actively driving and guiding their purchase choice next slide please Obviously different categories have very different levels of priming stage bias and so it can be weak or it can be strong interestingly two examples highlighted there for for for non-alcoholic drinks and for and for oral care India actually very relatively weak in terms of the level of brand bias people bring into the category But across a lot of other categories you'll see their automotive consumer electronics travel home entertainment India is a market that is very strongly Influenced by brands and those things are very important parts of the economic value creation of growth So for those of you in the audience here who are who care about and have built their careers on brand building Know and understand that in general and on average that is very important economic work to driving outcomes in the Indian market More so in general than what we see across our our global averages So brand-building is very important and economically valuable to most of your categories next next slide please In fact the value of built building what we call bias those connections to brands People who have that those 49% of people who go into the category with a strong sense of bias Five to nine times more likely to choose that brand that they went in with strong bias for Makes sense, but five to nine times now you can start to put a number on it 1% of brand bias is Worth five times more than that at the shelf at the shelf And so when you start to understand and value that econometrically then you can say okay What are we going to do about that and how's that going to drive the decisions that we make and obviously these are different for different brands and Businesses the job and the goal of the marketer is to know this specifically for your brand in your category What's the importance of strong brand connection and bias to the decisions? They're making at the shelf and how am I performing versus my competitors when it comes to those things next slide, please Here's an example from from the category that I care very much about in India, you know airtel 44% Vodafone 37% so relatively speaking airtel is doing a better job at the moment than my Client I've got some more work what cardiac we've got some more work to do here You know airtel is doing a better job of creating that connection and bias by you know by seven extra percentage points That's a meaningful difference in terms of bias that they're bringing to the shelf next slide, please Vodafone is doing a better job of creating those customer relationships that are going to build and drive loyalty more resilient brand It's actually why it's been holding up relatively well under the onslaught of geo and what they've been doing in the category in this market They've done a good job because of the strength of those commit connections once they have customers next slide, please So the real question the first thing I want to point out in the world of short termism If you want to make a case for brand investment It is really about focusing on the behavioral economics of what that brand is worth at the shelf What it's the advantage you build with that brand versus norms in your category is your brand maximizing its potential relative to its competitors and And the third point we say is don't be fooled by consideration. It's a weak measure. It's a weak measure very often what looks like Consideration is people that have already decided to buy your television. They're just going through the motions to confirm their choice so a lot of shopping behavior that you see the Indigital that you pick up signals on that you're spending a lot of money chasing after those consumers is not actual Consideration it's confirmation bias so in those categories in those situations more important again Not that you just build consideration or intent, but it's strong and stronger and that brand intent and consideration is stronger So that's the first thing in the world of short termism know the behavioral and economic value of what you're building in your brands next slide, please The next thing I want to talk about briefly is what all this got to do with the battle in the battle for attention in a world Where it feels increasingly more noisy and hard to break through how can purchase journey thinking help us to navigate that world next slide, please Thank you If you live in a city you get on average 5,000 messages a day from brands from companies if you live in a city And so that's a lot of messages. It's a lot of messages We also know That 67% of people on average in Economies that have fairly well Established internet penetration yours is one of them practice media stacking 67% are watching television on their phones doing other things and at one time We all see it in the growth of our the numbers in this in this space It feels like people are fitting 28 hours of media consumption activity into a 24-hour day It's actually more like 14 or 15 But you know I wonder when the sleep is gonna when when eventually the need for sleep is gonna take over and these trends are Going to stop going in this direction, but the multi-tasking multi-messages. It's coming at them thick and fast consumers next slide, please Next slide, please So the way to understand that is then through the context of how do we break through in the context of the Dynamics and of the purchase journey the way we help our clients understand this with purchase journey thinking is to understand Relatively, what is the active stage? What is the amount of time after I've been triggered to market between I make a firm choice that I'm gonna buy something? To when I actually buy it and on average our global average is that looks like about 7% of the time Now that might be in the case of yogurt I'm making that decision on a Thursday and buying it on a Friday So put it on my shopping list on a Thursday But if I'm buying a car in China, then it's more like a 45 for 45 month purchase journey Our 45 year purchase journey and I'm spending four to five months considering it So understanding the amount of time you are in market and taking what actions you're taking in market relative to what I'm just forming Associations is a really important part of the thinking for us because that says at the critical moment How and where do I need to break through in the active stage? How long is that and what's that worth to me next slide, please? Within that context, it's not just enough to know how long the shopping behavior is going on But it's really important to know what's happening inside that shopping behavior And so we measure this by looking at what's going on in that 7% of time and we look at how long is that how many How long am I in the market shopping and how many actions am I taking and you see some very interesting different things If I'm shopping for travel if I want to take a vacation. I'm in market on average for a relatively short period of time 16 days and I'm taking on average 13 actions in that time visiting a website Getting a recommendation from a friend conducting search looking at reviews, etc. Etc. And on rinse and repeat visiting your websites If I'm buying a new checking account, you would think it'd be relatively important purchase I'm in market for a long time, but I'm only doing two or three things We had an experience with this with a financial services Customer who realized that was shocked to learn how how few actions were taken by somebody looking to sign up for a checking account They realized in that context how important the quality of those interactions were So they went from spending a lot of money on massive massive massive frequency and programmatic and display and went to much more high value engagement formats when they were When they were activated against triggered customers and their conversion rates by doing more impactful things All right, but fewer of them in the active stage their conversion rates went through the roof by Understanding the nature of the purchase journey. So we ask ourselves is there is your purchase journey long and long and thin short and Thin or long and fat and that's really understanding the amount of time and the amount of things that customers are doing if we look try to break through All the noise that's going on in the category next slide Next slide, please We also work really hard to understand in the context is what's the Relationship between what I thought I was going to do and what I actually did So we measure this by looking at this quadrant of saying did I think I was going to buy a brand? I thought I was going to buy a Mercedes did I actually end up buying a Mercedes and what happened and how does that compare for my Versus my competitors this is data from our China benchmark study on the luxury auto market And you realize and you see the strength there of Audi and Volkswagen compared to Mercedes-Benz in Converting that strong bias and consideration for the brand into an actual purchase So the way we look at this is so who's uninfluenced by you pays you no mind Still quite a high number. There's a lot of people out there that pay your brands no attention whatsoever What was the missed opportunity who thought they were strongly going to buy me But something happened at the dealer at the store at the shelf on the website that made them change their minds Who was confirmed they thought they were going to buy you and they did and who was converted who was converted They thought they were going to buy somebody else and you flip them It's amazing in how many studies we see around the world has small that converted segment is If you're waiting if you're one of those brands that says we haven't got much money We're going to wait till they're in market and we're going to go after them with search And we're going to get them an offer at the last second and try and win them in the last second Know how hard that is if they're not coming to you with strong strong buys and preference It is really hard to flip them over. We see that all the time with very small numbers Of consumers getting converted at the last mile at the shelf Next slide, please Next slide. I won't give you go into it. I'm just consciously your time. So I'll keep going So in the context then of purchase journey dynamics for us it's saying Do you know the dynamics of your purchase journey? Can you identify the biggest opportunities for drive momentum? I'll give you a tip Very often the next best action to take is to build the brand very often econometrically speaking And which brands are set in the pace in your category and what's its impact on your business and your outcomes These are big things that we look to answer every day on behalf of our clients next slide Finally, I want to talk about how we use purchase journey thinking to help us Deal in a world where there is intense business model disruption Which we're all dealing with next slide We all know this experience is the next uber coming your way. We think this is a new phenomenon But you know, uh, we just heard a great story about how the regulatory environment, you know in the 80s was a massive disruptor To what was going on in selling televisions in this country So there's a lot of forces of disruption regulatory competitive, etc And so this is something we're all the growth and role of e-commerce The growth of the retail channel. There's a lot going on that's driving disruption in our in our categories next slide, please This is just one example that was put together by the consulting firm You see their cv insights. These are all of the insurgents taking a bite out of proctor and gambles business You know, think about what they're dealing with I think some days my my days are complicated dealing with You know facebook and the consultants. They've got all these companies You know from dollar shave club walker and company harry's livenix male linen goats juice beauty sensible organics the honest company You know unreal. These aren't just competitors These are competitors that are coming at them with disruptive approaches to engage in with consumers and business model disruption That has taken a chunk out of some of the biggest brands in the world Next slide next slide, please We also see what we call a lot of touch point disruption So it's not just business model disruption. It is what is changing in behaviors that's having an impact This is an example where we're seeing it in terms of the amount of comparison shopping that's happening at the shelf The amount of people that are using Your costs your sunk costs in physical retail environments to come in and look at the stuff While they're price shopping and ordering online They're using you as a showroom and then they're buying from an amazon a flip card, etc Etc or whoever's got the lowest price and best deal So the this understanding the context of touch point disruption is really important for us because it's where are the ways And what are the ways we need to intercept them? We made this realization For a for a consumer electronics client of ours and they started to put a lot more money Into mobile advertising geo fencing targeting closer to the point of purchase to try and have that influence Driving more can search and comparative shopping behaviors and price matching search guarantees and things of this nature Closer to that point of that point of decision to stop the ability of an amazon or a flip card from disrupting them Right at the point of purchase So there's a lot of ways to think about purchase journey thinking in the context of these three big Forces that we're all dealing with at the moment next slide, please Next slide things Next slide, please So in the context of the challenge of short-termism, we're dealing with in the boardroom. It's really understanding How purchase journey behavior Is is driving your business and the relationship between that and the economic outcomes in the world where we're battling for attention It's understanding the dynamics of the purchase journey And what's going on inside that shopping behavior and how we win In a world where we're not going to get there with spray and pray anymore We have to intercept them at the right time the right moment the right message Because there are so many messages coming at them and finally in a world of business model disruption We use purchase journey thinking to rethink how to reimagine and rethink over longer time horizons How are they approaching the active marketing to deal with all of this all of this disruption They're experiencing to their business models. So again, that's that's become our religion at wave maker We've found it incredibly clarifying Incredibly bringing a lot of focus to our business a lot of focus to our product roadmap and our conversations with clients is Let's cut through the noise. Let's get past all the the the stories of the day and start to focus on the big Long-term business of using purchase journey thinking to improve the economic outcomes For you as marketers and then to through that conversation to really support marketers in having a more Economic econometrically driven conversation with cfo's and in the boardroom So we can continue to protect and defend those very important investments We're making in building our brands and businesses. So I want to thank you for having me here today Thank you for inviting me and it's been a great pleasure spending this week in india And and I look forward to seeing you again soon. Thank you very much We are open for question answer. Yes, we have one question there, sir. I request you to please join me up on the stage again So Under the understanding what I understood from your call keynote. I mean so generating brand love Is also like if you look at Technology as an enabler in take a futuristic view Do you think it will become more complex or It'll become easier more refined to understand and generate that love for the for the brand How do you see that Become more complex to generate that. Yeah, I think I think the first thing is is brand love is is very important. It's very important and so But the tools for generating it have changed But the underlying principles of great insights having a strong understanding of your functional emotional benefits How to take those out to build resonance the power of brand storytelling All those things remain the same and so you know so So that's that's useful because a lot of those skills that were built up over many years thinking about how to build brands are Still really relevant It's just to me the tools are starting to evolve And so when you start to get to you know the power to do more personalization with technology More one-to-one targeting create more segmentation more different types of messages getting out into the world The end game is still the same. It's using deep insights and great Storytelling to drive that connection with your the brands It's now then using the new tools the modern marketing tools Data data driven and technology driven to really enable that to happen much more On a you know on a more personalized and one-to-one basis and when we see clients doing that I mean, you know the the economic returns go up the amount of upside there is for marketers by connecting With the power of technology and data to drive a different kind of storytelling There is an incredible amount of upside that we're seeing and an incredible amount of Improvement in the ability to drive and create brand love. I hope that answered your question. I'm not sure if it ever did but Thank you I think thanks for an insightful session I have a very simple question for all the negative press that facebook is getting You think it will impact their you know business revenue In the short-term medium term. No, I don't think it will I don't think it will I mean we big big advertisers with few exceptions We saw it in their last earnings 49 q1 earnings growth. I mean a pretty massive quarter And what we've seen is big big advertisers continue to support them And and big agencies like group m and others have continued to support them and the reason is quite simple The reach is still powerful. The ad products are still powerful and the risk to a brand You know the consumers Completely see what's gone on between Facebook and Cambridge Analytica as having to do between you know facebook and now the government and the regulators They don't they don't attach any of that negative association to brands. They see on the facebook platform So it's been very resilient. So our advice to marketers has been you know if facebook was working for you There's no reason to pull out because there's no risk to the brand of what's going on in the Cambridge Analytica scandal You know it's been a little different with you know with youtube and the brand safety issues and you know around websites and things like that So there's that's we've been a bit more measured in those situations But certainly in this particular case with with facebook It's uh, it's had no dent on the business and we don't we don't see it having a dent on their business Thank you again