Posts

olx-india

Online Classified Market In Pakistan

Pakistan has traditionally always been a nation with strong social support systems rather than institutions. Even for things as simple as schooling or buying a house, we seek after the opinions and recommendations of our own and extended family and friend networks rather than depending on external reviews or peers.

Over the last few years however this system has seen a gradual shift especially in the upper income segments. As technology has permeated into our lifestyle, the increased exposure and information flows has resulted in making judgements based more on the recommendations of strangers and experts than just existing peers. The increase in more and more people shifting to nuclear families as well just amplifies this trend further. To cater to this sophisticated audience, a growing plethora of classified advertisements sites are springing up in the anticipation of this growing market of the future.

Globally a $100 billion business, Classified sites are the new form of how consumers and businesses or more appropriately sellers and buyers find each other. Whether individuals or businesses are looking for a used car (pakwheels.com), a new employee (rozee.pk), a place to sell their mobile (hafeezcentre.pk) buy a plot for investment or their new home (zameen.com), or even find a partner (shaadi.com), the first stop is increasingly becoming the Internet to sites such as these and more. The appeal lies in the convenience and ease of use such sites provide with powerful search capabilities, more personalized “push” services such as automatic ad alerts, more timely and up-to-date listings and features such as photos, video, and sound clips in online ads. Best of all they are FREE!

In some aspects, the evolution of the online classifieds in Pakistan is unique from its global counter-parts. Pakistan has seen the rise of vertical sites i.e. specializing in one area such as jobs, real estate and matrimonial first unlike say US where the first and still biggest classifieds site is Craigslist, a horizontal site specializing in many categories simultaneously. Secondly, unlike the west, where online classifieds have taken business away from newspapers, online classifieds in Pakistan have grown the overall market. During this time even the print classifieds have grown substantially. This is comparable to our telecom markets where the fixed lines though have been growing gradually, whilst the mobile market has shot through the roof improving tele-density significantly. The future however is mobile and similarly, the online classifieds industry will ultimately cross the print classifieds through the sheer reach, flexibility, cost effectiveness and ease of use for both advertisers and searchers.

Classified sites are the ideal web 2.0 business for a country like Pakistan for unlike Ecommerce models based businesses such as EBay or Amazon where the transactions are completed online, users never buy directly from these classified sites thus our limited infrastructure and payment gateways do not restrict the growth of these online business. Instead, users to these sites use the service to look for best offers and get in touch, while transactions are conducted in person or by phone. The sites benefit from advertising revenue and some paid listings for ‘Featured’ ads. Whilst numbers of the size of the market and revenues are harder to come by, leading the traffic race is OLX with 2.2 million unique users every month in Pakistan. Local sites such as Pakwheels, which deal mainly with second hand cars, claim 15 Million Page views in a month and 150,000 registered users. Zameen.com claims over 180,000 unique monthly visitors and 10,000 site listings a month.
“The market is interesting because of the potential – Pakistan is a huge market in terms of sheer numbers There are roughly 20M Internet users in Pakistan today, and we believe that this number will grow substantially over the next decade. So there’s definitely a big potential in the Pakistani Internet market. We believe that a free, quality classified site like dekho.com.pk is a service that most of the Internet users in Pakistan will want to use”, said Nils Hammar, CEO at dekho.com.pk, one of the pioneers of classified sites in Pakistan.

The launch of Dekho.com.pk since November last year is interesting because this is a horizontal site, much like OLX or Locanto in Pakistan and amongst a growing number of foreign horizontal sites investing in the future of this country and this market. Even with local players, also the market is shifting from vertical category sites to horizontal category sites. Even the players who were earlier in one category have launched other verticals or their own horizontal sites e.g. Pakwheels have launched naitazi.com and tringtring.com, verticals for general goods and mobile phones in Pakistan.

The trends and the factors governing classified ads markets support their assumptions. There is a substantially large numbers of micro and small entrepreneurs who are increasingly looking at advertising options that are free or low cost to market their businesses, services or products online. Online classifieds provide them with a local as well as a national reach and like we mentioned it’s free. A site like dekho.com.pk already claims 50,000 listings in a span of few months.

Classifieds online is definitely evolving but it needs a critical mass. Pakistan’s online industry is in the nascent stages. The overall internet population in Pakistan is limited. Even though it is said to be around 20 million, a person accessing Internet at least weekly is not more than 5-8 million (estimated). Out of this, people looking for search based information would be 2-3 million. This is not a critical mass when compared to US or other developed markets. Secondly, there is a problem of information hoarding e.g. the real estate brokers thrive on their knowledge of whose buying and whose selling and would not part from this information easily. However even with these challenges, the number of classified listings and the audiences would increase substantially in the next 3-5 years because of two things:

1. Pakistan is an emerging market growth with both GDP per capita and online media consumption growing at a good pace. The increasing salaries, more disposable income (many times due to both partners working), increased choice of goods has ensured that users are changing their laptops, PCs and cars faster than before. 50% of mobile especially gets changed within 6 months of purchase. These trends are resulting in a spurt in online listings. People are selling everything – right from washing machines to laptops and even air conditioners. Currently the household in Pakistan which wants to sell items doesn’t have any option offline except the people they know. Hence, online classifieds sites are providing these solutions.

2. Sellers are not online, while buyers are all over the Internet. How many apartment landlords are willing to put up their rental ads on a website? Infact how many landlords are Internet savvy in the first place? However as awareness about online classifieds increase, this will change and more people will join in the marketplace. Online classifieds currently stand to become the trade portals of all C2C transactions in Pakistan and fill in the huge gap between buyer knowledge and sellers disadvantage.

The future for these markets look bright. Internet penetration in Pakistan has been constrained because of broadband and PC penetration where as Mobile penetration has been explosive. People are beginning to realize the ease of access of Internet through their mobiles and in many cases they are having their first exposure to internet through a mobile handset. Online classifieds on Mobile are gradually gaining traction and with the rapidly growing mobile internet users, it could become the largest chunk soon.

“A great mobile service is a must as the Internet usage goes mainstream. We have a mobile site today on dekho.com.pk/m that is being used by all kind of mobile devices. As the market grows we will add more options for mobile users. The future looks promising. We have a lot of belief in Pakistan and the Pakistani Internet market and we want to be a part of the progress as the market grows. So far, the response we’ve had from our users has been great, so I really believe dekho.com.pk will bring value to the Pakistani market”, said Hammar.

One thing is for sure, no matter how the classifieds market will look like in the future, more Internet users mean better services being developed, and better services in turn attract more Internet users. Hopefully we’re in the beginning of this positive spiral where it’s hard to imagine 5 years from now a better way to sell our cars, buy our houses or even find our partners for life.

Original Post: http://auroramag.wordpress.com/2012/06/19/classified-and-online/

The Future of Digital Marketing: Pakistan 2015

It’s sad that at every turn we tend to focus on the negatives when this great country really offers endless opportunities amidst all this chaos – if one is focused to see the forest for the trees. Because of a lack of legacy infrastructure to burden us down, the marching advent of technology and telecom is shaking up the old and ensuring that Pakistan is coming of age in one of the fastest of the new growth industries such as Digital Media and Marketing which will only go up and up over the next decade.

Let me start by making a bold prediction. Expect 15% of all advertising in Pakistan to shift to digital, interactive, mobile, social and online video over the next five years. Why is it bold, because currently digital spending is estimated at US $5 Million and if the prediction were to come true, we’re looking at an amount hovering in the $40 -$50 million USD range. That’s a growth by a factor of 10 in just 5 years. It’s an impossible figure at first sight but like in the rest of the world, the increasing consumer connectivity (4 million+ broadband connections by 2013 – Source: PTA), Mobile and social technologies are rapidly evolving the very definition of marketing and commerce in our country and the on-coming world of 3G / 4G technologies, cloud computing, mobility and even SMS/WAP based services will quickly bring this prediction about. With this in mind, the following will be growth areas in our country over the next few years:

Prediction #1: The Ubiquitous Mobile Eco-system

If you think the Telecom sector is huge right now, wait for a few years. With close to 60 million phones and 90 million SIMs providing the foundation, already without a doubt the next big thing is going to be mobile. You maybe getting tired of hearing about how it’s going to happen, but it is coming and coming soon and it’s going to be not just about phones, it will be an entire ecosystem built around the mobile – any service, anytime, anywhere and on any screen.  Bring in location based services, m-commerce and Proximity forms of marketing enabled by a million strong SME sector and it’s a no brainer that mobile-assisted shopping will be integrated into the physical and m-commerce especially will become a necessary part of multi-channel retailing and an important component of Point of Purchase Promotions. With that we can portend the rise of mobile comparison shopping, mobile coupons, mobile affiliates and ever more SMS services. Add in social networks which are being promoted on even the Chinese mobiles, we can easily perceive that social media and social commerce on the mobile device will be a big part of our marketing efforts. For the marketers the challenge in this regard will be even more platform fragmentation.

 

Prediction #2: Digital Marketing Will Be About New Possibilities

Digital marketing will be about connecting information that’s otherwise not connected to create new possibilities and experiences. If my own personal experiences in game development are taken as an example, applying game mechanics to the customer journey, particularly product awareness/brand discovery – with levels, engaging fun challenges, and certain rewards can be very effective way to market your own brands even now and in the future will be certain to grow as ‘experiential marketing’ takes over from traditional activations. You’ve heard life is a game … this time we’ll be living it especially as augmented technologies come into play in this country – some we’re developing even now. For those who’d like to see what the Pakistani marketing world can be like in 2015 Google ‘Nike London Grid’

Prediction #3: TV Will Still Rule But The Focus To Something New Will Come

In a Feb 2010 published report by the European Interactive Advertising Association (IALS), the number of hours that the average person spends connected to the internet in Spain now exceeds that spent watching television. The study, conducted in 15 European countries, revealed that people in Spain spent an average of 13.3 hours per week connected to the internet compared to 13 hours in front of the television. There is quite a difference between age groups, with younger people spending most time online, while those over 55 years of age almost exclusively use only television. Whilst on the same note a study by Ipsos Reid last fall found that Canadians are spending more than 18 hours a week online, compared with 16.9 hours watching television. In the UK, According to a Sept 2009 news report by the Internet Advertising Bureau (IAB), online has overtaken television to become the biggest single medium growing to 1.75 billion pounds, with the medium accounting for 23.5 percent of all spend, ahead of television. If the European and Canadian trends are to be taken as a benchmark for our world in the future, than there will be a major shift in advertising from being predominantly TV focused to something new. The economic drivers are already compelling marketers to try their hands on digital.

Prediction #4: Digital will continue to remain a Paradox

Digital marketing will always remain a challenging paradox for the traditional marketers because the way currently marketers think about digital is flawed, fully racked as they are with a mindset tuned towards providing immediate gratification, a one-off mentality and a propensity to constantly chase the next shiny object. Understanding conversations, the loss of control, co-creation, engagement are forms which will take time before they’ll be manifested in the marketing communications here.

It can be said that digital technologies have changed everything, not because of the speed of access but because there is a direct connection to what we want which is always on. This has changed the experience from one which used to be disruptive (turning on the PC to check email e.g.) to embedded (checking email on the phone whilst on the go) and being integrated into everything we do. This is the same technology that will be powering our media and marketing over the next decade and giving us continuous hope and reason for bringing our country into the developed world at an extremely fast pace.

A truly connected world is going to be a radically different world from the world we currently inhabit and understand. It will be a world where mobile devices and computers will be as prevalent as the air we breathe. It will be where social media will compete against mass media and real time ‘Now’ will complement the traditional forms of ‘Search’. It will be a world where Apps will compete against ads and context will be king. The cloud, semantics, Android, mashups, mobile, social graphs & social-spheres, user targeting,  HTML5, location-based, gaming, ad exchanges, path to conversion, 3D, channel interaction, HD video, augmented reality, data visualisation, apps and even more, and all present even on the lowly Chinese devices will stand to drive the consumer on a different path to purchase than the current models. Already the trends show that consumer preferences are already shifting towards the digital landscape. We’re watching Indian soaps on YouTube, banking through our mobile phones, finding life partners and ordering grocery online. What happens when these technologies become embedded in our lives? We’re already witness to the decline of the ‘Broadcast Business models’ from newspapers & magazines to TV & music, none command the stature of previous decades and as technology progresses they’ll lose their importance even more. With this will come the end of noise & interruption form of advertising and the rise of context, relevance and real experiences for brand building.  Consumer behavior will continue to change as technology evolves and permeates even more into our lives, giving greater influence and control to the consumers over the relationships and the experiences that they choose to have with the brands.

 

 

InStore, InStyle – Marketing in Retail Stores Using Digital Media

Dawn Aurora - March-April 2010 IssuePublished in Dawn, Aurora, March – April, 2010

Over the last decade broader socio-economic changes, including growth in the urban middle class and disposable incomes have given rise to the modern retail sector in Pakistan.  There has been a marked decrease in traditional ‘kiryana’ stores, an increase in general stores and the emergence of new formats such as superstores, malls and retail chains to cater to the increasingly time-compressed consumer[1].Instore Marketing

Even a few years back, the concept of in-store marketing did not exist in this country. Yet today due to the fragmentation of traditional media and the tremendous clutter of information assaulting today’s consumer, stores are emerging as a viable alternative to the challenging mass-market advertising environment. They’ve quietly become a hotbed of advertising activity as more and more brands, big or small shift to in-store advertisement, providing effective and direct communication to the customers.

“Currently all our marketing activities are sponsored by our suppliers. Roughly speaking [instore marketing] accounts for 2 to 5% of Makro’s revenue. Instore marketing also include Makro-mail, which is fortnightly published and distributed to top 5000 customers as well as to all concerned suppliers and stakeholders.” said Salman Zafar, Asst. Category Manager at Makro Pakistan.

Research indicates that over 70% of decisions are made in-store or at the ‘First Moment Of Truth’[2] which is why marketers are increasingly seeking ways to control what ad messages their customers see and what information they access for making purchase decisions increasingly through digital media – one of the primary digital vehicles being used in-store is Digital Signage, one of the staples of modern trade outlets.

Through the use of Digital Screens / Retail TV and Interactive Kiosks, marketers are increasingly targeting consumers looking to learn about new product offerings, recipe ideas, advertised specials, etc. Fast Moving Consumer Goods brands in food, dry food and non food segments are most active industries in this space and actively use digital signage to differentiate their brands and provide customers a break from the rather mundane shopping experience.

Amongst the innovators in this category, has been Dalda Foods Pvt. Ltd. Recently in Ramadan, they launched an ‘Activation’ across Karachi, Lahore & Islamabad using Digital ‘Wheel of Fortune’ Interactive Kiosks. Using touch screens to provide instant play, software to control the inventory and multimedia to add excitement to their consumer offer (play and win on buying 10 KG of Dalda’s products), Dalda added entertainment to an otherwise mundane activity and the results of the activity backed their decision. In an otherwise crowded marketplace, these kiosks helped Dalda to differentiate from all the other brands out there using traditional formats.

Similarly, a high-end beauty products company utilized this medium to interact with their customers too. Using motion sensing technology called ‘Eye-Sense’ developed by Tuesday Digital, the digital characters would call out to the passerbys and get them to interact with the screens and products of the company. Aside from FMCG, PSO has also setup digital screens at its pumps, whilst banks such as Standard Chartered are experimenting by setting up live kiosks at their branches to give their customers a demo of their online banking facility.

These companies are not the only ones. Realizing the gains from going digital, retailers too are jumping on this band-wagon. Originally viewed as a potential incremental revenue stream and a way of sourcing more marketing rupees from brand manufacturers, digital instore formats are now also being seen as a way of differentiating the shopping experience and promoting their own offerings.

“Currently digital signages are not there in Makro, but yes Makro has plan of introducing them in future. In-store media can provide us with an effective way to increase revenue, both through higher average shopping baskets per customer visit and increased customer loyalty in terms of number of visits and what they regularly purchase while in that store during each visit”, Said Salman Zafar.

Aside from Digital Signage, another digital medium which is growing is the use of Mobile technologies in the retail environment. ‘BlueCasting is a relatively newcomer to advertising but stands to greatly change the way we market. The pioneers in this field are Mobilius who have developed ‘BlueStorm’, a proximity marketing tool which aims to engage the consumers. Using the technology marketers can broadcast pictures, audio, video and text within a 100m radius ensuring a very innovative and cost effective way of spreading the messages across thousands of people who visit these outlets. Since it’s fully mobile, BlueStorm” can be used to reach out to customers for special promotional campaigns like distributing redeemable coupons. It can also be utilized to organize promotional game shows such as treasure hunt at exhibitions/shopping malls or anywhere else, thank customers on exit and get instant feedback.Instore marketin

The future of this format is only expected to be bright. If the experience of Thailand is taken as a benchmark, one can expect that by 2010, modern formats particularly large supermarkets, hypermarkets, and convenience store chains will have captured about 25 per cent of the total retail market, and most of the middle and upper class markets. At the same time, one can expect that the number of outlets per thousand population would decrease from the current level of about fifteen down to ten. It is expected that the share of total retail sales held by both traditional kiryana and general stores would decrease from about current levels of 95 per cent to 50 per cent.[3]. Marketers are taking note.

“I think “the last mile” is becoming increasingly important even in Pakistan as categories go back towards commoditization with an endless supply of brands and the consumer lost between their choices. Especially for intangibles like telcos where data is the only thing that the consumer buys, it is much more convenient to deliver interactive ways to select and change package plans on the go”, said Tamseel Alvi, Brand Manager, Zong.

He continued “Retail is surely becoming a key “moment of truth” in terms of delivering brand experience. In terms of dedicated brand outlets, franchises and more so our customer support centers are becoming more like experience centers rather than just a sales outlet. In the rural sector, our mobile customer support centers are taking the retail outlet directly to the consumer”, Tamseel Alvi, Brand Manager, Zong

With the falling price of digital media gadgets and flexibility in content creation that only digital technology can offer innovative store technologies now allow grocery retailers to give consumers what they want: time and money savings. This is just the start of what digital can do for marketers and retailers.

“Retailers must make the jump to a totally integrated closed-loop model. To maximize return, retailers must deploy a macro system which seamlessly connects all in-store digital marketing with their POS and loyalty database systems [and if they don’t have any, they should start thinking about creating them] and in-store activation devices that connect customers in real-time to the retailer’s systems. What I’m talking about, is CRM applied at the store level. We call it transactional media, because it involves bringing together all the in-store marketing pieces in a coordinated customer-centric fashion to enhance the in-store shopping experience for consumers, increase sales transactions and build loyalty for retailers. What’s intriguing about this model is that by better serving their customers, retailers and brand marketers better serve themselves”, said Salman Abedin, CEO, Tuesday Digital.

As digital media  increasingly prove their effectiveness  — To retailers by turning their communication vehicles into steady revenue streams and to advertisers through better reach and targeting — the flood of interest and money will disrupt the status quo. This change will affect nearly all in-store marketing players, from agencies to retailers and everyone in between. Those that embrace the disruption stand to benefit the most.


[1] Mr. Jawaid Abdul Ghani, Consolidation In Pakistan’s Retail Sector.

[2] Source: POPAI, Point of Purchase Advertising International (POPAI)

[3] Mr. Jawaid Abdul Ghani, Consolidation In Pakistan’s Retail Sector.

From The Archives (2006) – Marketing To Kids

Branding Kids
Published In Dawn, Aurora Magazine, April 2006

by Umair Mohsin

Anybody who has ever actively chosen to watch kids shop in a super market will testify to the fact that it’s a fascinating experience. These ‘little angels’ are very much the devil in disguise and quite capable of toppling the mightiest brands in Pakistan. They have their own tactics of getting what they want. Kids are very likely e.g. to slip the product they like into the shopping cart, replace your product with a competitor’s (as countless exchanges of Lux for Safeguard soaps have shown), hand it directly to the cashier, pester either of the parents or the best one – throw a tantrum right there on the spot if they don’t get what they want. The use of such indirect influences termed ‘Pester Power’ combined with their own purchasing power makes them the biggest market in Pakistan and one that is the least understood.

To date there has been no study of the potential of the kid’ s market in Pakistan. However, a rough estimate can be devised. The 0-25 years old market in Pakistan comprises around 64.9% of the 153.96 Million (Source: Economic Survey 2005) people in the country. Slicing the same percentage from the approximately 60 Million people living in the Urban sector and taking out the 16-25 bracket comprising of 8.9 million individuals and the 12-15 bracket comprise of 4.1 Million individuals (Source: AC Nielsen Data) leaves us an estimated 25 Million kids in Pakistan out of which the 3-12 years segment can comprise of anywhere between 15-20 million potential users of all kinds of products ranging from juices, confectionary and even mobile phones.

In terms of direct spending only e.g. the average pocket money for the lower SECs (B,C,D) school going kid is Rs.10 per day. In the upper SEC’s, it can reach as high as Rs. 50 per day. Taking the conservative approach at Rs. 10, gives us a direct spending potential of Rs.150 million per day or an eye popping Rs. 54.750 Billion annually in just the urban sector.

Kolsen’s Slanty & Ding Dong Bubble Gum are two examples of the potential that lies in this segment. Slanty, the largest selling snack brand in Pakistan, sold more than 300 million packs in 2005. The sales of Ding Dong are estimated to be Rs. 2 Billion a year (Note: Hilal wasn’t available for comment).

Meet The New Kids

Almost every aspect of today’s younger generation is different from what we might have experienced in the past. They’re growing up faster, are more connected, are more direct and much more informed. They also have more personal power, more money, influence and attention than any other generation before them. With so much autonomy and decision-making power within the family, it follows that kids are vocal about what they want their parents to buy.

“This is the first generation to have a lifestyle and the segment is growing at a decent percentage. It is also the most global generation the world has ever seen. They’ve been exposed to both local and international trends since birth”, said Asif Iqbal, CEO, Post Amazers.

This is the generation which can be reached 24 hours a day, 7 days a week, if not via the landline than via an SMS, a chat room or an IM message and there is no doubt that this steady diet of information, available 24 / 7 through a whole variety of channels, is playing a major role in shaping this new generation.

Ahmed Iqbal, Marketing Manager, National Foods said “Generation gaps now appear as closely as 5 years. They can take more information, process faster since they’ve been exposed to more mediums.”

“The kids know about all the content available on channels now and parents have been unable to limit this knowledge. These exposures to so many mediums have made their thinking broader. Kids now are far more intelligent and clever. They cannot be pushed anymore”, said Sabin Talib, BM, Prince Biscuits.

Says Hatim Shaikh, BM, Slanty “The kids of today are more computer and technology savvy and their ability to absorb messages and recall things has increased phenomenally as compared to the previous generation.”

This generation expects replies to SMSes in minutes. If not they get bored and move on to something more engaging. They are also used to things happening instantly and growing up on instant gratification has meant that it is also more demanding.

All this awareness is turning these kids into a NOW generation. They want things to happen here and now. They want to solve their problems now, not tomorrow. They must make the purchase now, win the game now or learn what they want to know now. Thus this is a generation with little, if any, patience. How can you be anything otherwise, if the media presents a world where pop stars are created in 4 weeks and millionaires are made in half an hour.

As with two sides to a story, the media is not wholly to blame for this either. Parents today are willing to compromise to and buy more for their kids because trends such as smaller family size, dual incomes and postponing children until later in life mean that families have more disposable income. Guilt plays a role in spending decisions as time-stressed parents substitute material goods for time spent with their kids. The thought of nagging in the little time that the parents have with their children, is enough to open the wallets.

With all these information flows however, there are signs of worry. “The new generation is losing its creativity. Creativity now comes packed in a box. Young people once spent hours outside playing games in parks and friend’s places. They invented games, rules, played cricket, they played as leaders and war generals. No more. Nowadays, kids barely leave their bedrooms. Too few games now ask them to create the environment or the rules of play”, said Faisal Tamana, GM, The Musik. “Increasingly their behaviors, thoughts and attitudes are being created by the entertainment world”.

Marketing To Kids

Kids are the easiest segment to market to. Give or take a little, their interests are similar globally and unlike the adult markets where a thousand variables (and choices) can exist, the kids market on the other hand with few disagreements is a global one. Toys like Barbie, Pokemon, Beyblade or characters like Harry Potter are global trends.

Kids also make the perfect target groups, because they are old enough to have formed clear brand preferences, yet are young enough to be dependent on their parents and thus have the ability to directly influence their parent’s spending. They keep asking their parents over and over for what they want so they have a tremendous say over what gets bought in the household including major household purchases. In some cases of purchases by parents they have such an influence they may be thought of as the primary decision makers. No other generation has ever had as much disposable income as this one.

Kids are VERY MUCH brand conscious

Teens are active lobbyists when it comes to brands. Babies as young as six months of age can form mental images of corporate logos and mascots, brand loyalties can be established as early as age two and by the time children head off to school most can recognize hundreds of brand logos.

Their brands are the symbols for an identity, offering the opportunity to be trendy, cool, rich, rebellious, stylish even sexy and thus are an integral part of the way kids define themselves. It’s the way they express who they are at home, at school even on the net but that doesn’t mean they’ll regurgitate anything. This generation is very skeptical and they have a built in B.S. alarm that goes off quick and fast when they know that the advertiser is lying. They’re very media savvy and it’s getting harder and harder to market to them….their needs change at such a fast pace.

Sabin Talib commented “Mother’s can’t force their kids to eat something anymore if they don’t want to. Especially in confectionary and biscuits, after 6 years of age, the child will make their own choices independently.”

Thus, brands must continue to surprise and innovate in their communication to keep the brands fresh in the minds of kids because once a brand hits a peak, there’s no where to go but down.

Why is it worth it? Brand relationships formed in childhood do last into later years in adulthood, giving you years and years of solid, dependable growth and revenue.

Their Dreams And Desires – How To Reach Their World

“I Can’t Stand Britney Spears. My Friends Hate Her”

Kids want security. Whether boys or girls, kid usually feel very lonely and look for connections and relationships. Therefore a fundamental factor of a kid’s life especially as they reach their teens is peer pressure. They tend to follow the herd rather than their own instincts, thus popularity and fame scores high on their lists. If they aren’t after it for themselves, they’re deeply in love with those who do. This makes them less likely to develop loyalty to a brand unless it also appeals to their friends. But mass appeal does not elicit loyalty in any form. Kids follow their peers and equals. If their identified groups shift brands, then everyone else will follow without remorse.

“Mom, I Want My MTV”

Once upon a time, about twenty years ago, fifth- and sixth-grade boys were about as fashion-conscious as their pets. Come this generation and they scorn any symbols of their immaturity, cultivating a self-image that emphasizes sophistication. They’re very concerned with their “look,” and a growing minority have begun using hair mousse and baggy jeans. This young generation wants cool, hip, and sexy.

“I Want To Be Commander Safeguard When I Grow Up”

Kids want mastery. They love doing things their way and want the same control that they witness in their heroes which incidentally we have a dearth of in Pakistan. Marketing pundits wrongly assume that kids will relate to cricket or singers. They don’t.

“We don’t have local heroes or kids celebrities. There is a big gap. They’re not turned on by cricketers or by singers. That’s basically a teen forte”, said Asif Iqbal.

Kids are desperate for regional / local heroes. They want content to which they can relate themselves with their language, their style, their choice of names, etc. They may watch cartoons like Dexter or Tom & Jerry but they cannot relate to these characters. Local marketers will need to create our own stories specially customized for these kids.

“Ha Ha Ha… that’s funny Mr. Monster Man”

Humor easily reaches across to both boys and girls as does fantasy, providing the fantasy is not too unrealistic. Kids have their own special humor, intrinsically related to their own unique concept of fun. Making your friends laugh also generates acceptability and loyalty.

Fantasy on the other hand expands the imagination. The younger the child, the greater the capacity for fantasy. Kids spend a lot of their time pre-occupied with day dreams which often star themselves as a hero of one sort or another living in a boundary free world. Characters such as Batman, Harry Potter, Spiderman all have taken advantage of this tendency to create very strong brands.

“Whatever they see on TV, they follow. They live in a fantasy world. That’s why we’ve given Prince a new look. He’s now more like a friend for the kids and someone they look up to”, said Talib. “Since confectionary and biscuits are impulsive buys, if they like and associate with the commercial or character, they will go for it.”

“Due to the massive reach and popularity of TV, kids of today are inspired by cartoon characters and super heroes and want to emulate them in their daily lives as well as use products which are linked to these characters”, said Hatim.

A ‘Today’s’ kid’s room will make it increasingly clear that the role of toys too have changed. Where once you would have found traditional toys in a 10 year olds bedroom, now in all likelihood you’ll find gaming consoles, CDs, movies, etc. The only toys that kids know of now are those linked to branded shows, ones like Pokemon or Commander Safeguard.

The Answers To Breaking Into The Rs. 55 Billion Market

“Not That Again”

Slanty was the first of its kind snack, Squeezy is the first of its kind of packaging. Even the Squeezy ad was ‘different’. Thus to reach this segment, innovation is very important.

“It’s Good. I Saw It On TV”

The life of most kids esp. urban ones is of routine including school, study, madrassah. By 5pm, escape is their deepest desire. In those two hours anything which provides them entertainment is undertaken or watched. Thus television plays a central role in their lives. They absorb more details and faster than adults do and contrary to conventional wisdom they genuinely love good ads and talk about them in their schools, at play, etc. They actually expect ads to take them to a different place and show them things they aspire to see and become. Entertainment, humor, light action and friendship are very important to these segments and they’re attracted to them.

“They’re less involved with publications than one might believe. It’s another form of education and kids already have enough of it. That’s why TV viewership is definitely growing in this segment with channels like Nickelodeon, Cartoon Network leading the way”, said Asif Iqbal.

Therefore the answer lies in Experience and Involvement. To build a deeper relationship, interaction is the key. An engaging and involving experience in which the brand plays the lead role is the key to building a successful relationship with this segment.

“The only reason behind the success of Commander Safeguard was that no one did something like this before. It was the first of its kind animated series and most of all it was in Urdu. Pakistani kids had never been exposed to anything like it before”, said Asif Iqbal.

Asif Javed, ABM on Squeezy said ‘The prime factor is fun. It is the platform you can easily target. Cartoon characters especially involve the kids”

Why characters? Firstly, you don’t have uncontroversial celebrities in Pakistan. Secondly, with us being an emotive nation, we hate and love in a sine wave.

“The day Inzi scores a duck we hate him and the next day when he wins the matches we love him. Same is the case with singers. There are over 500 groups in Pakistan and there is none who have ever composed anything for this segment. There is no poetry, rhymes, or famous songs. Comics again are in English and mainly restricted to ‘Archie’. There is no belongingness in any of this.” said Asif Iqbal.

Thus if characters are done well, in accordance with brand values, it has a great chance that the brand will shine through, since there is not much competition in the mascot area. Characters also represent your brand, are ideal role models and most of all you own something that is totally yours forever. These characters will never die and never age. Celebrities after 5 years would probably not be attractive enough to be use as brand ambassadors. Characters live forever.

“Your desired positioning is best driven through a character. Your brand values are depicted easily. Squeezy is Top of Mind right now and the sales targets are well on their way to being achieved. Kids have actually pestered parents to get them the product”, said Asif Javed.

“Music is about who I am”

Music separates and unites various groups and a clear indicator of brand preference. Brand preferences often correlate with musical tastes.

“Music does more than simply create emotions. It creates trends. When kids like a song, they also focus on the artist who’s performing. Thus, you’d have people following the artist’s looks, behavior, speech, dancing style, attitude as well as their opinions and recommendations. This is a whole new ball game.” said Faisal Tamana, GM, The Musik.

“Mom, You’ll Never Guess What Happened At School Today?”

Campus Marketing programs are also increasingly becoming the best way to reach this segment. Last year LU alone targeted 70,000 kids and 21 top schools. Sponsorships especially are a cost-effective way of getting your message across to this segment and involve them. The kids get a better event (e.g. School Mela) and the advertisers benefit through sampling and presence.

“What You’ve Never Played CounterStrike”

Internet and Gaming too are a fast growing area but neither will be a hit without specific programming of their own. The best option right to exploit these new media is through TV and branded entertainment.

Conclusion

Dealing with kids is dealing with your future in all manners & forms, even to the point where you have the power to shape the upcoming world. That is why marketers must follow ethical guidelines and practices when marketing to these segments, as these little people are special. Dishonesty in advertising, producing low quality products just to make the sales this quarter will result in a future generation impaired in some form. Remember, kids are not as cynical as adults. They trust… a LOT! That is why care must be taken and once you have the opportunity to work with them, keep your word and enjoy the company of fun filled, exciting people for years and years.

<!–[if !mso]> <! st1:*{behavior:url(#ieooui) } –>

Anybody who has ever actively chosen to watch kids shop in a super market will testify to the fact that it’s a fascinating experience. These ‘little angels’ are very much the devil in disguise and quite capable of toppling the mightiest brands in Pakistan. They have their own tactics of getting what they want. Kids are very likely e.g. to slip the product they like into the shopping cart, replace your product with a competitor’s (as countless exchanges of Lux for Safeguard soaps have shown), hand it directly to the cashier, pester either of the parents or the best one – throw a tantrum right there on the spot if they don’t get what they want. The use of such indirect influences termed ‘Pester Power’ combined with their own purchasing power makes them the biggest market in Pakistan and one that is the least understood.

To date there has been no study of the potential of the kid’ s market in Pakistan. However, a rough estimate can be devised. The 0-25 years old market in Pakistan comprises around 64.9% of the 153.96 Million (Source: Economic Survey 2005) people in the country. Slicing the same percentage from the approximately 60 Million people living in the Urban sector and taking out the 16-25 bracket comprising of 8.9 million individuals and the 12-15 bracket comprise of 4.1 Million individuals (Source: AC Nielsen Data) leaves us an estimated 25 Million kids in Pakistan out of which the 3-12 years segment can comprise of anywhere between 15-20 million potential users of all kinds of products ranging from juices, confectionary and even mobile phones.

In terms of direct spending only e.g. the average pocket money for the lower SECs (B,C,D) school going kid is Rs.10 per day. In the upper SEC’s, it can reach as high as Rs. 50 per day. Taking the conservative approach at Rs. 10, gives us a direct spending potential of Rs.150 million per day or an eye popping Rs. 54.750 Billion annually in just the urban sector.

Kolsen’s Slanty & Ding Dong Bubble Gum are two examples of the potential that lies in this segment. Slanty, the largest selling snack brand in Pakistan, sold more than 300 million packs in 2005. The sales of Ding Dong are estimated to be Rs. 2 Billion a year (Note: Hilal wasn’t available for comment).

Meet The New Kids / You’re In MY World Now

Almost every aspect of today’s younger generation is different from what we might have experienced in the past. They’re growing up faster, are more connected, are more direct and much more informed. They also have more personal power, more money, influence and attention than any other generation before them. With so much autonomy and decision-making power within the family, it follows that kids are vocal about what they want their parents to buy.

“This is the first generation to have a lifestyle and the segment is growing at a decent percentage. It is also the most global generation the world has ever seen. They’ve been exposed to both local and international trends since birth”, said Asif Iqbal, CEO, Post Amazers.

This is the generation which can be reached 24 hours a day, 7 days a week, if not via the landline than via an SMS, a chat room or an IM message and there is no doubt that this steady diet of information, available 24 / 7 through a whole variety of channels, is playing a major role in shaping this new generation.

Ahmed Iqbal, Marketing Manager, National Foods said “Generation gaps now appear as closely as 5 years. They can take more information, process faster since they’ve been exposed to more mediums.”

“The kids know about all the content available on channels now and parents have been unable to limit this knowledge. These exposures to so many mediums have made their thinking broader. Kids now are far more intelligent and clever. They cannot be pushed anymore”, said Sabin Talib, BM, Prince Biscuits.

Says Hatim Shaikh, BM, Slanty “The kids of today are more computer and technology savvy and their ability to absorb messages and recall things has increased phenomenally as compared to the previous generation.”

This generation expects replies to SMSes in minutes. If not they get bored and move on to something more engaging. They are also used to things happening instantly and growing up on instant gratification has meant that it is also more demanding.

All this awareness is turning these kids into a NOW generation. They want things to happen here and now. They want to solve their problems now, not tomorrow. They must make the purchase now, win the game now or learn what they want to know now. Thus this is a generation with little, if any, patience. How can you be anything otherwise, if the media presents a world where pop stars are created in 4 weeks and millionaires are made in half an hour.

As with two sides to a story, the media is not wholly to blame for this either. Parents today are willing to compromise to and buy more for their kids because trends such as smaller family size, dual incomes and postponing children until later in life mean that families have more disposable income. Guilt plays a role in spending decisions as time-stressed parents substitute material goods for time spent with their kids. The thought of nagging in the little time that the parents have with their children, is enough to open the wallets.

With all these information flows however, there are signs of worry. “The new generation is losing its creativity. Creativity now comes packed in a box. Young people once spent hours outside playing games in parks and friend’s places. They invented games, rules, played cricket, they played as leaders and war generals. No more. Nowadays, kids barely leave their bedrooms. Too few games now ask them to create the environment or the rules of play”, said Faisal Tamana, GM, The Musik. “Increasingly their behaviors, thoughts and attitudes are being created by the entertainment world”.

Marketing To Kids

Kids are the easiest segment to market to. Give or take a little, their interests are similar globally and unlike the adult markets where a thousand variables (and choices) can exist, the kids market on the other hand with few disagreements is a global one. Toys like Barbie, Pokemon, Beyblade or characters like Harry Potter are global trends.

Kids also make the perfect target groups, because they are old enough to have formed clear brand preferences, yet are young enough to be dependent on their parents and thus have the ability to directly influence their parent’s spending. They keep asking their parents over and over for what they want so they have a tremendous say over what gets bought in the household including major household purchases. In some cases of purchases by parents they have such an influence they may be thought of as the primary decision makers. No other generation has ever had as much disposable income as this one.

Kids are VERY MUCH brand conscious

Teens are active lobbyists when it comes to brands. Babies as young as six months of age can form mental images of corporate logos and mascots, brand loyalties can be established as early as age two and by the time children head off to school most can recognize hundreds of brand logos.

Their brands are the symbols for an identity, offering the opportunity to be trendy, cool, rich, rebellious, stylish even sexy and thus are an integral part of the way kids define themselves. It’s the way they express who they are at home, at school even on the net but that doesn’t mean they’ll regurgitate anything. This generation is very skeptical and they have a built in B.S. alarm that goes off quick and fast when they know that the advertiser is lying. They’re very media savvy and it’s getting harder and harder to market to them….their needs change at such a fast pace.

Sabin Talib commented “Mother’s can’t force their kids to eat something anymore if they don’t want to. Especially in confectionary and biscuits, after 6 years of age, the child will make their own choices independently.”

Thus, brands must continue to surprise and innovate in their communication to keep the brands fresh in the minds of kids because once a brand hits a peak, there’s no where to go but down.

Why is it worth it? Brand relationships formed in childhood do last into later years in adulthood, giving you years and years of solid, dependable growth and revenue.

Their Dreams And Desires – How To Reach Their World

“I Can’t Stand Britney Spears. My Friends Hate Her”

Kids want security. Whether boys or girls, kid usually feel very lonely and look for connections and relationships. Therefore a fundamental factor of a kid’s life especially as they reach their teens is peer pressure. They tend to follow the herd rather than their own instincts, thus popularity and fame scores high on their lists. If they aren’t after it for themselves, they’re deeply in love with those who do. This makes them less likely to develop loyalty to a brand unless it also appeals to their friends. But mass appeal does not elicit loyalty in any form. Kids follow their peers and equals. If their identified groups shift brands, then everyone else will follow without remorse.

“Mom, I Want My MTV”

Once upon a time, about twenty years ago, fifth- and sixth-grade boys were about as fashion-conscious as their pets. Come this generation and they scorn any symbols of their immaturity, cultivating a self-image that emphasizes sophistication. They’re very concerned with their “look,” and a growing minority have begun using hair mousse and baggy jeans. This young generation wants cool, hip, and sexy.

“I Want To Be Commander Safeguard When I Grow Up”

Kids want mastery. They love doing things their way and want the same control that they witness in their heroes which incidentally we have a dearth of in Pakistan. Marketing pundits wrongly assume that kids will relate to cricket or singers. They don’t.

“We don’t have local heroes or kids celebrities. There is a big gap. They’re not turned on by cricketers or by singers. That’s basically a teen forte”, said Asif Iqbal.

Kids are desperate for regional / local heroes. They want content to which they can relate themselves with their language, their style, their choice of names, etc. They may watch cartoons like Dexter or Tom & Jerry but they cannot relate to these characters. Local marketers will need to create our own stories specially customized for these kids.

“Ha Ha Ha… that’s funny Mr. Monster Man”

Humor easily reaches across to both boys and girls as does fantasy, providing the fantasy is not too unrealistic. Kids have their own special humor, intrinsically related to their own unique concept of fun. Making your friends laugh also generates acceptability and loyalty.

Fantasy on the other hand expands the imagination. The younger the child, the greater the capacity for fantasy. Kids spend a lot of their time pre-occupied with day dreams which often star themselves as a hero of one sort or another living in a boundary free world. Characters such as Batman, Harry Potter, Spiderman all have taken advantage of this tendency to create very strong brands.

“Whatever they see on TV, they follow. They live in a fantasy world. That’s why we’ve given Prince a new look. He’s now more like a friend for the kids and someone they look up to”, said Talib. “Since confectionary and biscuits are impulsive buys, if they like and associate with the commercial or character, they will go for it.”

“Due to the massive reach and popularity of TV, kids of today are inspired by cartoon characters and super heroes and want to emulate them in their daily lives as well as use products which are linked to these characters”, said Hatim.

A ‘Today’s’ kid’s room will make it increasingly clear that the role of toys too have changed. Where once you would have found traditional toys in a 10 year olds bedroom, now in all likelihood you’ll find gaming consoles, CDs, movies, etc. The only toys that kids know of now are those linked to branded shows, ones like Pokemon or Commander Safeguard.

The Answers To Breaking Into The Rs. 55 Billion Market

“Not That Again”

Slanty was the first of its kind snack, Squeezy is the first of its kind of packaging. Even the Squeezy ad was ‘different’. Thus to reach this segment, innovation is very important.

“It’s Good. I Saw It On TV”

The life of most kids esp. urban ones is of routine including school, study, madrassah. By 5pm, escape is their deepest desire. In those two hours anything which provides them entertainment is undertaken or watched. Thus television plays a central role in their lives. They absorb more details and faster than adults do and contrary to conventional wisdom they genuinely love good ads and talk about them in their schools, at play, etc. They actually expect ads to take them to a different place and show them things they aspire to see and become. Entertainment, humor, light action and friendship are very important to these segments and they’re attracted to them.

“They’re less involved with publications than one might believe. It’s another form of education and kids already have enough of it. That’s why TV viewership is definitely growing in this segment with channels like Nickelodeon, Cartoon Network leading the way”, said Asif Iqbal.

Therefore the answer lies in Experience and Involvement. To build a deeper relationship, interaction is the key. An engaging and involving experience in which the brand plays the lead role is the key to building a successful relationship with this segment.

“The only reason behind the success of Commander Safeguard was that no one did something like this before. It was the first of its kind animated series and most of all it was in Urdu. Pakistani kids had never been exposed to anything like it before”, said Asif Iqbal.

Asif Javed, ABM on Squeezy said ‘The prime factor is fun. It is the platform you can easily target. Cartoon characters especially involve the kids”

Why characters? Firstly, you don’t have uncontroversial celebrities in Pakistan. Secondly, with us being an emotive nation, we hate and love in a sine wave.

“The day Inzi scores a duck we hate him and the next day when he wins the matches we love him. Same is the case with singers. There are over 500 groups in Pakistan and there is none who have ever composed anything for this segment. There is no poetry, rhymes, or famous songs. Comics again are in English and mainly restricted to ‘Archie’. There is no belongingness in any of this.” said Asif Iqbal.

Thus if characters are done well, in accordance with brand values, it has a great chance that the brand will shine through, since there is not much competition in the mascot area. Characters also represent your brand, are ideal role models and most of all you own something that is totally yours forever. These characters will never die and never age. Celebrities after 5 years would probably not be attractive enough to be use as brand ambassadors. Characters live forever.

“Your desired positioning is best driven through a character. Your brand values are depicted easily. Squeezy is Top of Mind right now and the sales targets are well on their way to being achieved. Kids have actually pestered parents to get them the product”, said Asif Javed.

“Music is about who I am”

Music separates and unites various groups and a clear indicator of brand preference. Brand preferences often correlate with musical tastes.

“Music does more than simply create emotions. It creates trends. When kids like a song, they also focus on the artist who’s performing. Thus, you’d have people following the artist’s looks, behavior, speech, dancing style, attitude as well as their opinions and recommendations. This is a whole new ball game.” said Faisal Tamana, GM, The Musik.

“Mom, You’ll Never Guess What Happened At School Today?”

Campus Marketing programs are also increasingly becoming the best way to reach this segment. Last year LU alone targeted 70,000 kids and 21 top schools. Sponsorships especially are a cost-effective way of getting your message across to this segment and involve them. The kids get a better event (e.g. School Mela) and the advertisers benefit through sampling and presence.

“What You’ve Never Played CounterStrike”

Internet and Gaming too are a fast growing area but neither will be a hit without specific programming of their own. The best option right to exploit these new media is through TV and branded entertainment.

Conclusion

Dealing with kids is dealing with your future in all manners & forms, even to the point where you have the power to shape the upcoming world. That is why marketers must follow ethical guidelines and practices when marketing to these segments, as these little people are special. Dishonesty in advertising, producing low quality products just to make the sales this quarter will result in a future generation impaired in some form. Remember, kids are not as cynical as adults. They trust… a LOT! That is why care must be taken and once you have the opportunity to work with them, keep your word and enjoy the company of fun filled, exciting people for years and years.

From The Archives (2008) – Meet Generation NOW

Meet Generation NOW
Published Dawn, Aurora Magazine, September 2008

by Umair Mohsin

When Pavlov trained his lab dogs to salivate on the command of a ringing bell, he inadvertently set the world’s stage for over a century worth of conditioning-based consumer messaging. The resiliency of the current model (create associations – link to product – hammer – repeat) especially was cemented in the early decades of the 20th century, when characters such as J. B. Watson and Edward Bernays “proved” that when businesses rang the right bell the right number of times, they could conjure desire and action in their audience. Branding as we know it today was set in place with the same model applied to every region of the world including ours successfully.

One reason for this was that even as close at 20 years ago media outlets globally were inherently limited by geography and scope so consumers lacked broad exposure to alternative experiences and information. Such was even more of a characteristic of our part of the world where communities were even more localized. Thus alternative exposure was limited. Indeed, the responses to the most heavily marketed (which in the old days meant buying advertising on the 9’o clock PTV news) goods and services then seemed to prove that all customers could be conditioned to salivate on command regardless of demographical differences between segments.

Come the 90s and the markets still hadn’t developed to anything remotely like today’s. Political upheavals from General Zia’s era, localized communities and lack of or restricted access to any forms of information or alternative viewpoints than the approved versions ensured people’s knowledge was restricted. Music channels were starting to be beamed into the country but then they were mostly western (MTV / V) channels that were aired through satellite to the privileged few. The preferred jobs were CA, a Doctor or an Engineer. A new breed of technology was just starting to come into the country called the internet launched by a company called Digicom. Yet that too was inaccessible to the common man. Infact up to the year 2000, we still only had 133,900 internet users in totality. Available advertising media choices were still limited and the model still worked successfully.

The era of transformation was finally reached 10 years ago when everything began changing and in some cases all at once – Information, media, educational institutes and even books. New channels including cable were launched in a country which had been to date used to only watching what was aired by a monopoly. Telecom companies started operating. A global IT revolution was underway worldwide so everyone wanted to be in IT business in Pakistan too. A bigger & silent revolution underway however was hidden beneath the calm oceans of the demographic data. On the exterior of things there was still no clear differentiation between the youth audiences and other audiences. From the young consumers’ point of view however, the increasing information from multiple channels and mediums was morphing them from dogs into cats.

The opening of the 21st century became the boiling point for media fragmentation in Pakistan. This blossoming of media placed an unprecedented amount of information in the hands of customers, rendered geographic barriers moot and for the first time set up clear differentiations in the behavioral structures of the sub-population including now what’s being called the youth market. The advent of the Internet and wireless technologies like the mobile phone gave everyone access to information anytime and anywhere whilst the opening up of media markets to competition lead to what’s today’s increasingly fragmented, always-on media landscape. Young customers now had access to an unprecedented amount of information and could communicate any time and place they pleased.

Let’s stop here for a moment to understand the basic difference between cats and dogs. The prime difference is motivation. Let’s stereotype – a dog wants to please you, a cat couldn’t care less. Dogs are devoted, loving and selfless. Cats are aloof, indifferent, and self-indulgent. Dogs are social and act in ways that maintain and support the social order. Cats are solitary and act in ways that benefit themselves. A cat’s engagement with you lasts only as long as she wants it to last. A cat is not out to please you. Cats tend to see the world revolve around them. These describe the characteristics of our youth perfectly.  Young customers now resemble cats – notoriously self-motivated and generally not biddable. The ‘Brand’ is now defined in customers’ minds by their personal experiences with a particular product or service and not the advertising or marketing support and they are attentive only to the information that matters to them.

These emerging sub-markets are now starting to shatter marketer’s assumptions. Businesses have started finding out that they no longer control the strings – neither can they evoke desire nor elicit responses like they used to. These “bell ringers” who had grown accustomed over time, to the fact that their “dog’s” responses could be conditioned and, through certain repetitions influenced, are finding out that the youth is no longer passive. Empowered by knowledge the youth has started taking the steps to being in charge-much like cats. It is this sea change that’s got them them focused on what is relevant to them and start ignoring the rest.

“The main difference because of which the youth are now choosier is just the access of information. Everything else is the same. The youth for generations have always been demanding- such is their nature. Now however the range of their demands has increased and this is simply because of the knowledge they possess. Now it’s not what their parents give or can’t give, like it was in the 90s. These days even a kid has information about things which we never knew about when we were their age. Where before information was suppressed or released in chunks, now kids can search for anything. Thus they are more specific about what they want and are not dependent on their parent’s choices.”, said Asif Iqbal, CEO, Post Amazers.

Technology has changed the landscape and emerging media are now subdividing the masses into specialized audiences. The biggest challenge we face as marketers is the customer’s ability to assert control over the entire process. However, while emerging media and technology undermine the effectiveness of traditional mass-marketing models, they also create unprecedented opportunity for us to redefine and profit from how we communicate with customers.

Don’t Back A Cat Into A Corner

It’s a foregone conclusion that as media fragments, so does the “mass” in mass-marketing. Yet many marketers today still seem to think if their message can be broadcasted to the young consumers, they WILL listen to them. Most marketers look upon the new burgeoning media as vehicles for delivering messages to even larger audiences who (in their thinking) are predisposed to devour information at face value, respond accordingly and then constantly clamor for more. The current marketing philosophy seems to be to ring better& bigger bells for increasingly more dogs and because of it bells are ringing everywhere. Few marketers understand the full effect of blossoming media options on the current marketing models, however, and even fewer understand that the young customers don’t pant and whine anymore. Even worse, most of them find all that bell ringing annoying.

If defined than marketers will realize that there have been four major trends currently underway which will impact further & has been transforming this generation because of the transitional changes of the last 10 years. 1. Their lives have become almost completely digital. 2. They are taking a lot more stress AND are a lot more optimistic. 3. Everything’s about ‘US’ now and 4. They’re more socially aware & conscious.

1. Increased Connectivity

The youth have been turning away from old media channels and even most methods of advertising to embrace new media at a growing pace. A research undertaken by Google Pakistan estimates that 70% of the 14 Million online users spend now between 1 & 6 hours online DAILY. Yahoo! Pakistan cites that there are 2.64 million i-generation (under 25 years) Users on their networks whilst MSN cites that there are 1.8 million i-generation users on their networks. These numbers are expected to grow rapidly over the next 5 years. Despite repeated attempts an equivalency in telecom numbers couldn’t be determined, however estimates range from 14 Million to over 25 million mobile phone users.

These technologies are changing our youth into a generation of multi-tasking users, not used to missing a beat and always connected with the world around them. They have been freed from their traditionally passive role as receivers of marketing communications. Whilst in the past, marketers presented the view they wanted customers to see; today the customer chooses the angle from which they want to view the product. These angles of engagement reflect different motivations and different buying modes, and occur at different stages in the buying decision process. This growing abundance of alternative information resources give the young much greater control over the information search and acquisition process, and allows them to literally become active participants of the marketing process.

“The Web is a democratizing force as the world’s largest global brain. It educates everyone on the pros and cons of every product, service, and even person. An educated person doesn’t react well to the traditional ‘art of manipulation’ that most marketers attempt to employ in their campaigns. As a matter of fact, it makes them angry and defensive”, said Faisal Tamana, GM, The Musik.

What marketers need to understand is that for teens, it’s all about how technology is meeting their needs — to stay connected, express themselves, etc. Teenagers are subject to need for social validation. Despite technology advancements, the motivation to socialize hasn’t changed since time immemorial. Instead, it’s been dramatically enhanced and enriched with the explosion of digital communication platforms and social networks online.

“Kids and young people don’t love the technology itself — they just love how it enables them to communicate all the time, express themselves and be entertained. Under the age of 14, kids generally use the phone as a toy. After 14, the mobile phone quickly becomes a means of self-expression and communication,”, said Ehmer Kirmani, CEO, Media Idee. “Even if we look at the power of online communication tools, like instant messengers [8.6 million users] or social networking sites, which enables young people to communicate both privately and with multiple friends, we’ll find that they mostly use the features like winks, emoticons, etc. to add to the fun of chatting and allow them to express themselves more deeply,”, he continued.

“You can get your own e-identity now at 8. That possession is for life and you’re famous because of that ID. This is what makes them an individual at such an early stage.  Twinkle is the personality not Ayesha. [Marketers have to learn to] talk to that Twinkle and not Ayesha. She logs in from a CyberCafe in Lalo-khet. Online she is a different personality which is not the same personality as she is at home where she might not even be allowed to talk to her cousin or neighbors. Once on the net, however, she can talk to anyone she wants anywhere in the world and she’ll do it in ways that Ayesha will never.” said Iqbal.

2. Lots More Stress & Lots More Optimistic

The current youth says that their stress levels are “high” or “very high”.  They feel the world is now a more complicated place to live in today. However, they are optimistic about their future believing they can personally achieve anything they set their minds to.

“What’s happening in Pakistan. .. the interpretation of religion and way we enforce that on our youth, is putting them in very difficult situations. On one hand they have access to all this information about the world. When they look outside their window, however, the world is a different place. They don’t find that lifestyle around them. This is one of the reasons why there’s so much brain drainage. The youth especially from the Middle class has the tendency to make choices and wants to get somewhere. There is increasing frustration as they see less opportunities here than elsewhere in the world. That is why they involve less in group activities and go deeper into their own personal worlds.”, said Asif Iqbal.

3. Socially Conscious

Unlike previous generations, ethnic divisions are no longer a concern to the youth, especially for the middle class. Those ethnic divisions were fostered because to become a govt. employee there were quota systems. This is not present anymore since there are so many professions to choose from now. Thus the validity of the reasons that propped up the ethnic boundaries has reduced. Govt. bodies themselves are becoming privatized and the politics are slowly changing. So these people are changing along with themselves. They’re opening up to ideas and the world and want to make a difference. The new global campaign for the Greening of the Earth is already having a positive effect in the upper echelons of society and over time it is spreading to the masses as well.

It’s all about Us

The youth are driving a shift from a “me” culture to a “we” culture where the opinions of the group drive consumer trends, preferences and behaviors. Even though they want to stand out and express their individuality, young people strive to feel connected with each other.  They are looking for shared experiences and constant communication with a diverse group of people. The youth constantly seeks ways to put their stamp on products and have their voice heard.  It is a way of showing the outside world who they are and what they value.

“This is the most versatile generation has never been born in Pakistan.  Youth is more about themselves now”, said Iqbal.

“We have to learn to talk in their language and that is not what we are advertising with right now. There are few cheering moment in their life. The cricket team and hockey team has failed them, music has failed them, squash is almost finished. They don’t’ have heroes like Miandad, Imran Khan, Jehangir or Jansher Khan anymore. You have to create those idols again. The biggest problem in our advertising is role models.  They can’t relate to Shoaib Akhtar. They can’t relate to Qadir Khan and because of our lack of understanding of talent management we’re literally creating and destroying personalities. This is a problem for our youth. Who do they identify with then.” said Iqbal.

Times have changed—and so must we. Nobody could have foreseen the challenges today’s marketers would face. Twenty years ago, getting through to customers was only a little tougher than filling a thimble with a fire hose. Then multi-tasking, instant-messaging, e-mailing, cell phoning, emoticoning ;-), always on, web-searching, blogging, gaming, customers we now need to reach did not exist. Clearly we are moving through a time of irrevocable change that has profound implications for businesses large and small. We need to reinvent the way we market to consumers. Within it we’ll need to remember that cats don’t bark.

Get Ready For Social Shopping

People have long shared product opinions with friends and family through word-of-mouth. Today’s social media tools enable consumers to share and extend their connections and opinions in powerful new ways even further, enough to build in a whole new layer in the sales funnel for marketers. Yet e-marketers have barely tapped that potential to leverage the opinion of consumers to drive sales on social networks.

Traditional Sales Funnel

Modern Sales Funnel

Forward-thinking retailers are changing that very quickly. Most are bringing their Web stores to the environments where their customers like to spend time. As a result, almost three-quarters of the merchants in the Internet Retailer Top 500 Guide have a presence on at least one of the major social networks or social shopping sites.

Social network users are also a highly coveted group of consumers. Across all age brackets, they are more likely than average to make an online purchase, according to a May 2009 survey by Anderson Analytics. What’s more, social network users are also more likely to share recommendations with greater frequency than generally expected. A Q1 2009 Razorfish survey of social network users found that some 29% reported sharing their views online at least every few weeks, while 10% said they made such contributions at least every few days.

Etailers have already seen amazing results through social media tools like Twitter which is now becoming the defunct channel of Customer Service and a Promotion Vehicle of ‘Deal of the Day’. They’ve seen proven benefits through the ratings and reviews systems, which are already the mainstay of every e-tail store. It is now how etailers tap into this shift from a transactional experience to a social one which will determine the winners of tomorrow.

Marketing 2.0 – Leveraging Facebook For Brand Building

Facing Up To Facebok

Published Dawn, Aurora Magazine, Jun-Jul, 2009 Issue.

Facebook

Facebook

Media has been leveraged for sociable purposes since the caveman first discovered walls. Thus it can be said that the phenomenon of social media and social networks is not new. Even in Pakistan, the most popular applications that were ever installed on PCs were framed around communication and sharing – bulletin boards, mIRC, instant messaging through software like MSN Messenger, AOL or ICQ, chat-rooms, etc were very popular in the last decade.

In recent times, however technology has enabled the twin modes of communication and sharing on an unprecedented scale on what are called social networking sites examples of which include MySpace, Zedge, LinkedIn, Orkut and Facebook. These are changing the human fabric of the Internet in Pakistan with over 1.83 m users on Orkut and over 500,000 users on Facebook alone.

Pakistani marketers are eager to tap into these platforms. They have realized that it’s critical for them to reach the tech-savvy youth demographic that thrives on these sites. On Facebook e.g. out of the total 574,740 (Figure: May, 2009) people from Pakistan, 436,680 are between the age of 18-30. Thus social networks do have the potential to pay off big for marketers if they learn how to use it properly.

There has been ample growth in advertising on these sites and the figures speak for themselves. Eyeblaster Pakistan, a leading internet marketing company reports Adex on Facebook in 2008 was USD 150,000 out of the total USD 1.6 million (some sources cite USD 3.0 m) spent on online advertising and increasing every year.

Facebook Apps

Facebook Apps

However if we take advertising on Facebook (the most advertised site) as a case study, it has continuously produced less than stellar results for advertisers. Facebook is a social network site that brings friends together according to interests, existing connections, networks and groups. Yet while the targeting on the site is phenomenal, Facebook users are more engaged by the content within the site rather than the advertisements. It can even be said that Facebook is a little too engaging. The metrics tell the story. With historically high CPMs (current avg. CPM on Facebook for Pakistan is $0.95) and historically low click-thru, Facebook is facing a challenge to produce effective campaigns for the marketers. The graph below highlights the problem with objectives set around CTR.

EyeBlaster Data of Various Campaigns runs on FB & Zedge

Description

Facebook.com

Zedge.net

Standard Banner – Average CTR Range

0.10 % to 0.12%

0.4% to 0.75%

Rich Banner – Average CTR Range

0.53% to 2.67%

0.95% to 4%

Average Dwell Time

0.41 Seconds

0.44 seconds

User Engagement (Brand interaction Rate)

10% – 40%

30% – 75%

Source: Eyeblaster, Pakistan

However this same graph might be viewed differently if the objectives of the campaigns were to be changed to ‘User engagement’ or ‘Brand awareness’ instead of how many leads were generated through CTR. e.g. in terms of branding efficiency, you’re getting your name, logo and ad in front of thousands of people for pennies per thousand. If such were the objectives, then the efficacy of campaign will boil down to the advertised content – what do you advertise that works and what sort of rate do you get? However even then it’s not as simple. The world average of User Dwell Time on FB is around 20 minutes a day (Figures: Jan 2009) with global 50% daily logins (both numbers for Pakistan are not available). The peak amount of time spent on the site tapers off at 190 minutes. That means that a ridiculous number of impressions are being spent on the same user and that will understandably will generate low click-through rates.

Another thing marketers need to realize about social networks like Facebook is that unlike say Google, users on Facebook don’t want to leave the site. With Google the goal is to redirect the user to another site as quickly as possible. Facebook’s goal is to hold the users attention as long as they can.

Tip: When creating ad campaigns on Facebook, consider linking it to your Facebook company page instead of an off page website.  This way the user remains within Facebook and can continue utilizing the full functionality.

Facebook advertising also will never be truly effective for the users who have even a tiny bit of knowledge about PCs. For example any display banner can simply be blocked automatically with the Firefox Browser’s adblock feature.

Facebook Pages

Facebook Pages

Thus keeping the above in mind, advertisers need to approach the Facebook medium differently. There’s a lot of focus on advertising, banner ads and the amount of traffic but to really connect to your customer it’s important to look beyond traditional forms of web adverting to see the real potential… that Facebook is a great place for relevant traffic, without the need to pay for ads! There are millions of groups associated with all kinds of subjects in the Facebook empire, so whatever niche you specialize in there is usually a collection of individuals talking about it somewhere in that world. The challenge is leveraging the connectivity of the sites and using them to form communities around products, media or services. This approach will also ensure that you are actually connected with your users.

It would be wise for marketers to take a page out of the history of MySpace, another very popular Social Network. MySpace when launched was effectively ignored by the press and digerati. They gained traction with the musicians who were just starting to get that social network sites were valuable. Based in Los Angeles, they had an upper hand. They managed to attract club promoters and others catering to 20-something urban hipsters who were looking for a tool for coolhunting. Slowly, a symbiotic relationship emerged on MySpace as bands and fans became mutually dependent on one another. Against this backdrop, the youth phenomena emerged.

What companies can learn from this case is that social networks have the power beyond ad revenue to act as a customer relationship management (CRM) tool for them. As in much of media, creativity is the key here. If you can find the type of ad that Facebook users will click, that’s one thing, but if you can build something they’ll click, engage with (or buy) and help you spread, you’ve got something far more exciting

FB Users

FB Users

and effective. One campaign that used this technique very successfully was the Burger King “Whopper Sacrifice” application, which recently also earned a Grand CLIO in Interactive. BK developed a Facebook app that once installed promised to give the user a coupon for a free hamburger if they were to delete 10 people from their friend’s list to prove how they preferred the Whopper over their friends. The “sacrifices” showed up in the activity feed. So it said, for example, “Caroline sacrificed Josh for a free Whopper.” Facebook ended up disabling the WHOPPER Sacrifice, after the love of the user for the WHOPPER Sandwich proved to be stronger than 233,906 friendships.

All things said it also has to be remembered that not all products can be successfully marketed on Facebook. A new company or a brand that’s not a household name will have a tough time jumping into the mix, but so will established companies that don’t necessarily have public opinion on their side. It’s tough to get the conversation started when no one’s primed to talk about it and this is the challenge on Social Networks that brands must muster. They must remember that it’s not the marketers who are powerful on these sites, it’s the people and people empowered by technology won’t always go along.

Media isn’t neatly boxed into little rectangles called newspapers, TV or magazines anymore. People now connect to other people and draw power from crowds, especially IN crowds. If you want to be part of the Social Networks marketing process, than you have to be part of the conversations – that’s when real marketing takes place.