UK advertising trends

The UK economy is growing, which helps the UK advertising business rebound. As of 2018's first quarter, advertisers increased investments in digital advertising by more than 10%, not a surprise. What was a surprise was the increase of 12.5% in spending on radio advertising by 12.5%, a very strong result for this medium.

Another surprise was the increase in national newspaper advertising. Newspaper advertising spend had been decreasing since the end of 2010--until now.

Digital is, of course, a major focus for many advertisers. Yet transparency and trust remain a concern. The UK Competition and Markets Authority recently warned several influencers that any sponsored/commissioned posts on social media must be clearly marked as such.

Because celebrities and social media stars have millions of followers, what they post can make a difference in brand recognition, awareness and preference. That's why, says the senior director of the CMA, consumers should be 'clearly told whether a celebrity is promoting a product because they have bought it themselves, or because they have been paid or thanked in some way by the brand'.

Meanwhile, the Advertising Standards Authority is looking closely at marketers targeting children. It recently told Cadbury, Chewits, Squashies, KFC and Kellogg's to stop targeting children with digital adverts for foods that contain large amounts of fat, sugar or salt. For more about how the ASA protects children and vulnerable audiences, and for examples of banned adverts, see its explanation here.

Unilever improves transparency in influencer marketing

Unilever, which markets such famous brands as Magnum, Omo, Luxe and Lifebuoy, wants more transparency in the world of influencer marketing (marketing mentions by celebrities and social-media stars who have many followers and who serve as opinion leaders).

When a major marketing power like Unilever takes a stand, the advertising and social media ecosystems take notice.

Unilever's chief marketing officer says the company's brands will neither buy followers nor have a marketing relationship with influencers who buy followers. The company is also prioritising relationships with digital platforms that promote transparency.

The background: Unilever respects and appreciates the close, organic connection between influencers and their followers. After all, that's why these influencers have an influence on consumers. So Unilever wants brand fans to know it will not be associated with those who buy followers to boost their numbers on social media.

This is the next step in Unilever's initiative to increase trust and integrity in influencer marketing whilst also reducing 'toxic content' online. Read more about Unilever's pledge to improve transparency here.

UK marketing trends for 2018

2018

What trends should UK marketers pay particular attention to in 2018? Here are what some experts say:

• Influencer marketing will be increasingly important. Whether a marketer wants to reach a highly targeted audience or reach a broader market, influencers (opinion leaders) on social media can demonstrate products, explain benefits or simply express their positive feelings about the brand. 
• Highly targeted content for specific segments. Content marketing tailored to each segment offers the benefit of relevant and timely information. With better audience analytics, marketers can therefore target content accordingly, when and where each audience is receptive.
• Stories are useful for engaging customers. Some brands are using cause-related marketing to tell their stories, reinforcing brand purpose and showing that profit isn't the only motive for marketing. 
• Trust in many brands must be strengthened. For transparency, be sure the brand promise is clear and specific and deliver on the promise by incorporating the brand's values through all aspects of marketing.

Purpose-driven marketing at Unilever

Unilever's chief marketing officer recently said: 'We need to build brands with purpose. We need to go from "marketing to consumers", to "mattering to people"'.

In other words, the consumer products giant believes in purpose-driven marketing.

One year ago Marketing Week named the top 100 firms for brand purpose--and at the top was Unilever.

Just weeks ago, Unilever arranged to buy Seventh Generation, a US-based brand of household cleaners known for sustainability.

Unilever's executive vice president for global marketing notes that brands need to be activist as part of their purpose: 'Consumers are really expecting brands to create movements. They want to be part of those movements', she explains.

Yes, the firm's brands seek to make a positive difference (via social responsibility, sustainability and so forth). And in the process, Unilever benefits by meeting customers' needs, increasing public trust and, ultimately, improving the bottom line. 'Fifty percent of Unilever's growth today is coming from brands that are acting on their purpose', the EVP says.

Researching most trusted brands

Every year, Reader's Digest works with marketing researchers to survey consumers in various parts of the world about the brands they most trust.

In its introduction to the 2016 report about trusted brands in Asia, Reader's Digest wrote:

A trusted brand enjoys international appeal, yet at the same time upholds a strong local connection. It has individual relevance for all its consumers, just about anywhere and in any culture.

Conducting research about trusted brands in Canada, Reader's Digest reported the top brands within product categories, with some winners being Canadian brands and some global brands, such as:

• Most trusted cereal: Kellogg's (global brand)
• Most trusted smartphone: Apple (global brand)
• Most trusted pharmacy: Shoppers Drug Mart (Canadian brand)

In New Zealand, Reader's Digest reported the top brands within product categories, again a mix of global and national brands, such as:

• Most trusted bank: Kiwi Bank (New Zealand brand)
• Most trusted car rental firm: Hertz (global brand)
• Most trusted car brand: Toyota (global brand)

Marketing predictions for 2016

Marketing experts have a number of predictions for the year ahead. Keep these developments in mind if you're creating or refining a marketing plan in 2016:

• Trust will be more important than ever. Brands must take care to keep earning it with every transaction, every marketing action. Customers still want transparency and authenticity, not just the right product at the right price.
• Omnichannel is no longer merely an option, it's a basic requirement as customers expect personalisation and relevant marketing communications and offerings across platforms, online and offline. Customers who buy online should be able to return products in a store without fuss.
• Real-time analysis of Big Data wins. Customers leave traces everywhere they digitally go. It's up to marketers to interpret wants and needs by tracking behaviour and offering ads, content and other information at the moment consumers need and want it.
• Virtual reality is a reality. Brands and entertainment marketers need to have communications and services for cutting-edge technology, especially for millennial consumers.
• 'Alternative' has gone mainstream. Goods and services that were once on the margins are increasingly popular. Customers want 'unique', and retailers want to differentiate themselves by offering something other than the usual.
  
• 'Buy it now' is the new social media reality. See it on Pinterest or Instagram, buy with a swipe or click. Is your brand ready to take advantage of this trend?

Trust + reputation + service = Customer experience

The latest survey of Top 100 UK Brands for customer experience shows what happens when well-known brands get a reputation for trying to dodge corporate taxes.

As shown at right, the top 2013 brand for customer experience is John Lewis. However, Starbucks, which has been criticised for avoiding UK corporate taxes for several years, isn't anywhere to be found on this year's list of 100 brands.

Nunwood, the consultancy behind this survey, notes that customer service in meeting needs is important, but so is trustworthiness and reputation. The companies in this 2013 Top 100 list scored the highest on all those dimensions.

Some companies are new to the top of the list, others have been near or at the top for some time. Take a look at this comparison of the top 10 in 2011 and the top 10 in 2013. John Lewis, Amazon, Virgin Atlantic and M&S (food and brand) have extended their top-10 stays, even though they're not at exactly the same spot in the survey from one year to the other.

2013

1. John Lewis
2. QVC
3. First Direct
4. Amazon
5. Virgin Atlantic
6. Marks & Spencer (food)
7. Lush
8. Ocado
9. Marks & Spencer (brand)
10. Waitrose

2011

1. Amazon
2. John Lewis
3. Virgin Atlantic
4. Emirates airline
5. Marks & Spencer (brand)
6. Marks & Spencer (food)
7. Millie's cookies
8. Gregg's
9. Hilton hotels
10. Krispy Kreme donuts

Marketing and trust

Marketing Week has an interesting article today, asking: 'Can marketing overcome its trust issues?' Unilever's Marc Mathieu argues that customers want to be involved with brands and want ideas they can believe in. Mathieu's background with Coca-Cola, in branding and sustainability, gives him a good perspective.

Yet in recent years, consumers have often felt wary of marketing, distrustful of possible manipulation and concerned about corporate greed. At the same time, they prefer to trust product information and reviews from other consumers more than what marketers say. No wonder so many marketers are encouraging reviews on brand web sites and opening Facebook forums to encourage discussion among consumers.

Marketers must remember that building authenticity and reinforcing trustworthiness is a long-term goal--and trust may be seriously damaged by one thoughtless marketing action or when a product is recalled.

Who Wrote That Review?

And can it be trusted? This is the key question facing many buyers as they read reviews of goods and services on retail and travel sites. TripAdvisor.com, the travel review site, is being investigated by the Advertising Standards Authority after some hotels complained that some reviews were fraudulent or misleading. The site removed its strapline, "reviews you can trust," from the hotel pages as the investigation continues (although the strapline remains on its restaurant pages and elsewhere on the site).

So many buyers read reviews before they open their wallets that trust and transparency have become major issues for retailers and others who sell online. Recently, some academic researchers devised a method for detecting faked online reviews, indicating the level of attention that this question has raised. Other concerns are whether brands and sites remove negative reviews and whether some reviewers are paid to post complimentary reviews.

Now a group of retailers and brands--including PC World, Dixons, Sony and others--wants to reassure buyers about reviews through the use of the Reevoo Mark (above), a system that aims to have only real purchasers' reviews posted. Reevoo will also ensure that all reviews (bad or good) will appear. With the holiday shopping season fast approaching, trust promises to be a vital element in decisions about online buying.