marketing

LBi tops Marketing magazine’s digital league table for the second year running

New blue-chip clients, significant hires and blending a first class creative and  technology service contributes to strong business growth

London: Global digital marketing and technology agency, LBi, has again topped the annual Marketing magazine digital agency league table.  Based on turnover, financial growth (benchmarked against 2010) and expansion in terms of staff and also the acquisition of new digital skills, the league is universally recognised as a clear indication of agency performance in the UK.

With mixed market conditions prevailing, LBi has bucked the trend and pitched and won some major accounts throughout 2011 including:  America’s Cup, ASDA, Coca Cola (NWEN), Coca-Cola (Global Olympics), Logica, Pruhealth, SABMiller, (Peroni, Grolsch and Kozel), Sony Ericsson, Lastminute.com, and Choice Hotels.  The agency has also grown organic revenue year-on-year by 17% from existing clients including: BT, Barclays, Lloyds TSB, Marks & Spencer and Virgin Atlantic and Starwood.

LBi also significantly grew its skill base with the acquisition of bigmoutmedia in 2010 which has led to new opportunities in SEO, social search, display and affiliate marketing.

In line with this expansion LBi has grown its personnel in over 25 departments with 100 new hires, taking the UK total to 545.  It has also continued to grow its core services and 2011 has seen the agency develop expert teams around Content Strategy, Branded Content and Mobile.

Anil Pillai, CEO, LBi UK said: “The digital industry in the UK continues to grow and innovate and LBi is clearly helping to lead this particular charge.  This year we’ve spent a lot of time galavanising our blended approach to technology, creativity and marketing by making significant hires, growing our talented teams and broadening our core services which has helped strengthen our position in the market.

“Looking ahead, the next year is already shaping up to be an iconicyear with our clients really grasping our blended offer and asking us what’s next for  their business.”  We have some awesome products launching in 2012 across household brands, many of who have a stake in the 2012 Olympics.  Our partnerships with top clients are flourishing. our mobile offering is maturing rapidly, we have significant new hires across departments and many new business prospects set for what is set to be another exciting year for LBi”.

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Creative Social Presents… The Internet Enabled Society comes to LBi

We always love to discuss and explore what’s next in tech, culture and media — and how it affects us all — so next month we’re excited to have the chance to do just that as Creative Social will be holding their next event right here in our Brick Lane space.

Chris Clarke, our Chief Creative Officer joins a panel of leading socials in CS Presents… The Internet Enabled Society. Here’s the line-up for the night:

  • Chris Clarke, Chief Creative Officer, Lost Boys International – London
  • Alistair Campbell, Executive Creative Director, Agency Republic
  • Andy Sandoz, Creative Partner and Innovation Director, Work Club
  • Tom Bazeley, Managing Partner, Lean Mean Fighting Machine.

‘The power of choice, Call a spade a spade. The more internet-enabled society becomes, the more advertisers can help people decide which lager, bleach, bet, soap powder, margarine, flight, entertainment and cider to buy’, along with ‘Culture and branded content, is this the privatisation of social engineering?’ Through to ‘Analytics for the planet’ and ‘The convenience revolution, Why the power of easy will change the way we think about everything’.

Provocative, funny, always informative, Creative Social Presents (#cspresents) is not to be missed!

For a sneak peek of what you’ll be in for here’s a round-up of the last event, The Internet, Used to be Fun. What happened?

Find out more at Creative Social’s blog, buy tickets (£15 for Early Bird with free drinks!) and see you there!

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LBi publishes ‘The Blended Future’ with Campaign magazine

12th July 2011: Leading agency sets out its strategic vision

LBi has partnered with Campaign magazine to publish ‘The Blended Future,’ an article outlining the agency’s strategic vision.

LBi Chief Creative Officer Chris Clarke and Director of Branded Content Graham Hodge

LBi Chief Creative Officer Chris Clarke and Director of Branded Content Graham Hodge

 

Appearing in Campaign’s ‘What Next in Digital’ supplement,The Blended Future’ explains that in a world where consumers are increasingly demanding more from brands, any agency worth its salt needs a constantly evolving understanding of the possibilities technology enables.

Authored by LBi Chief Creative Officer Chris Clarke and Director of Branded Content Graham Hodge, ‘The Blended Future’ highlights that in order to deliver real innovation agencies need a special culture that is not conservative, change resistant or nostalgic for the past.

‘Blending allows us to take ideas from strategy and concept to launch and evaluation as quickly and effectively as possible – regardless of the specifics of the business challenge. Blending ensures we function as strategic partners, helping our clients decide what’s next and holding their hands on the journey,’ writes Clarke.

‘It’s not a complicated process. It’s about casting the right people and orchestrating their contributions so that the outcome takes a client further on their digital journey, delighting their customers on the way.’

‘The Blended Future’ concludes that thanks to the constantly changing media landscape the challenge for brands and agencies is less about forecasting what’s next and more about organising their businesses to be able to quickly adapt to change.

Campaign’s ‘What Next in Digital’ supplement also contains thought-pieces by a line up of other leading marketing agencies.

Here’s a video clip from campaignlive.co.uk featuring LBi’s Branded Content Director Graham Hodge talking about what’s next for the digital industry.



Read the full Blended Future article (PDF)

Related articles on campaign.co.uk
Digital learns to play a new role: Roundtable discussion

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Bringing targeting to Tinseltown

According to the latest issue of the Economist, Hollywood studios know less about their audience’s individual tastes than a shampoo-maker.

When a studio launches a film it has to create a marketing plan from scratch, because it doesn’t have its own data on audience behaviour. It’s easy to find out that Avatar grossed over $2 billion, but how many people have now seen it? And where can you find them?

The cinemas may know, but it leaves studios looking like 19th-century impresarios with Blackberries. In contrast, when people download or buy films from places like Netflix and Amazon, they leave valuable clues about their tastes which could be used for targeting.  No wonder William Goldman drolly observed that, in the screen trade, no-one knows anything.

While Hollywood appears scared witless by piracy, maybe bringing data into film economics could reframe the problem and create new relationships between movie makers and audiences. Why not harness the internet’s great ability to gather like-minded people together and marry this up with micropayments? You could then raise investment from audiences before production, rather than having to spray and pray marketing budget at every premiere. So invite die-hard Die Hard fans to be the first to see the latest instalment in the franchise, in return for an upfront investment.

This takes the concept of angel investment out into the stalls.  Of course movies these days need so much money you couldn’t cover your costs this way, but a studio would certainly get a valuable handle on its punters are. And word-of-mouth buzz would come for free, not forced out of a marketing schedule.

A couple of years ago as features editor at New Media Age I commissioned a piece on film micro-funding (subscription needed). At the time a former studio marketing executive described ideas about web-enabled movie funding as “digital busking”. Fair comment, but since then piracy, Netflix and a lack of audience insight have continued to chip away at the screen trade’s sense of entitlement. Among all the technical wizardry studios unleash on their audiences, you never hear about a customer database.

What might change things further is brands moving into content, especially at a time when sources of funding, such as private equity, are still in recovery.  Advertisers bring a totally different mindset – while they aim to become part of popular culture, they also demand granular detail about their audience. You still have to enlist the right creative talent, of course. But perhaps an Oscar for Audience Insight isn’t so far off.

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Are really annoying ads really effective ads?

The marketing philosophy of Hayley Parsons who heads up Go Compare the insurance comparison website makes for an interesting debate.

Talking about their TV ads, featuring the large moustachioed opera singer Gio Compario, she says “the brief was to make them as irritating as possible. I didn’t want to win any awards for creativity. Annoying ads really work”.

Her premise is that the tune sticks in your head until it hurts so that when people think insurance, they think Go Compare. As far as Parsons is concerned “ It doesn’t matter that they don’t like us”. Despite being voted the UKs most annoying advertiser, Go Compare has grown to be worth a reputed £400m in the 5 years since its inception.

Another infuriating example is the Michael Winner esure ads, famous for their “Calm down, dear, it’s just a commercial” catchphrase repetition of the same joke in different guises.  Winner revealed they might never have been made as Greg Delaney whose agency ran the account said of the original concept:  “This is the worst commercial I’ve ever heard in my life. We don’t want anything to do with it” and promptly resigned the account in disgust. Yet when the adverts were launched in 2002, esure had to take on 600 extra staff to cope with the volume of phone calls.

So does the claimed success of these ads in driving up sales give credence to the notion that ads don’t have to be liked to be effective?

Well the short answer is both yes and no…

Yes in that they do get attention, even if it’s negative.

Behavioural Economics thinking demonstrates that you don’t need to change attitudes to effect a change in behaviour -  which is fine given research shows the strength of advertising lies less in persuading people to change their attitudes and more in acting as a reminder to reinforce current behaviour. 

Expanding on this, Sutherland & Sylvester point out in their excellent book ‘Advertising and the mind of the consumer’ there are also two different mental processes at work in choice decisions: ‘Weighing up of alternatives is one, but more importantly is which alternatives get weighed up’.

In other words to be considered, a brand must first get itself onto a consumers mental checklist. So salience is the name of the game as the primary importance of any ad is to drive top of mind brand recall at the point of consideration. The strength of salience determines the mental order in which alternatives are considered. So the higher up a brand sits on a consumer’s mental checklist the better the probability of it being considered and purchased before the competition so long as the offer and experience is better or comparable to the competition.

This means in a cluttered relatively undifferentiated marketplace like insurance, getting your name firmly into people’s heads appears to be sufficient. So although Go Compare ads are extremely annoying, it appear s they don’t act as a barrier to purchase as they help remind people at the right point in time and encourage purchase.  

So does this mean t it is better to be hated if it gets you attention?

No – creativity has an important role to play

The above question raises an interesting point.  Strategically it can be good to be hated in helping focus and strengthen bonds with a specific type of consumer such as the case with Marmite. Likewise with advertising it is arguably better to be hated than ignored which is the fate suffered by the vast majority of advertising so long as you don’t alienate the people you are targeting.

Ads can be ignored for many reasons – not relevant, too bland, too boring, too me-too etc.  To work, ads need to spark a reaction whether this is good or bad.  However ads which set out to irritate and annoy don’t respect the consumer and as with real-life personal relationships, this doesn’t provide a solid foundation for building a strong positive bond.

Previous research by the Advertising Research Foundation established that ‘advertising liking was the strongest factor linked to sales’

As Roger Dooley, author of Neuromarketing puts it “At the cognitive level, I find myself repelled by an advertiser bold enough to acknowledge that their ads are annoying me, and then continue to assault me with the objectionable elements in the same ad.” He goes onto say, “The real danger, though, doesn’t really involve conscious processing by the viewers. If viewers begin to associate the brand or packaging with the negative emotion of a loud and annoying interruption of their entertainment, eventually the brand will suffer.”

And returning to Sutherland & Sylvester who say that ‘a brand’s advertising reflects a dimension of its personality, and therefore critical to making people feel good about the brand. Ads that are liked have a higher probability of being effective…and can be the feather that tips the balance towards that brand if all other things in the market are equal’.

In summary

It is true that irritating ads can be effective at driving recall and brand consideration especially when aligned to significant marketing spend to repeatedly hammer home their messages.

Also it is true that likeability is somewhat less important for high involvement products such as cars which have a more complex decision making process.  This is especially true of humour which can be seen as superfluous in attracting attention if it distracts from the key sought after message elements.

However it is important for low interest relatively undifferentiated categories such as car insurance where the purchase decision making process tends to be more functional and value-driven.  This is where a good creative strategy can help capture people’s attention, interest and imagination in a way that doesn’t annoy or irritate.

And in a digital world where people can choose to block out ads that irritate and where positive word of mouth is increasingly important to a brands success aiming creatively higher will help drive salience. This is because a brand’s advertising attire can make a brand more attractive and be the essential difference when everything else is equal.

So to win out in the longer term I’d suggest it’s not a case of shouting loud, but thinking smart.

What do you think?

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