AList Special Edition: Cannes Lions 2019

ERIC AYZENBERG Publisher

LAUREN AREVALO-DOWNES Executive Director

E. RYAN ELLIS Editor in Chief

MATTHEW AREVALO-DOWNES Associate Director of Audience Development

AARON ROBINSON Designer

MARINA KAPRALAU Production Coordinator

Contributors: Kevin George, Anne Bouleanu, Jacqueline Fernandez and Everson Royce.

Follow Us On Social @alistdaily

Contact Us: editorial@alistdaily.com sales@alistdaily.com

alistdaily.com 2

TABLE OF CONTENTS 04. Editor's Letter 06. Interview With Charlotte Williams, Vice President, Content At Cannes Lions

08. Inside Kabam’s In-House Rebrand 12. Jury Q&As 16. The Spinner And The Faustian Bargain Of Anonymized Data

18. How 5G Will Impact Marketing 22. Mastercard CMO Raja Rajamannar: “Focus On Reinventing Yourself, Even When Things Are Going Very Well” 28. A Story In Three Acts 36. How To Launch A Millennial Beer Brand 40. 24 Hours In Cannes 42. Harvest Health CMO On The Labyrinthian Task Of Marketing Cannabis 46. Is ‘Direct-to-Consumer’ A Bad Word?

50. Youth Marketer Gregg Witt

3

EDITOR’S LETTER Written by E. Ryan Ellis

I present to you AList’s Cannes Lions Special Edition. In it, you’ll find interviews with Cannes Lions' jury presidents and a fintech chief marketing officer, as well as an essay from a cannabis marketer.

Other highlights include an article about the effect of 5G on marketing and a piece that asks the question: Is direct-to-consumer a bad word?

Finally, we bring together Provence devotion and Angeleno ingenuity and offer a few rosé recommendations.

Enjoy your time in Cannes.

4

Get industry benchmark data for social performance.

socialindex.alistdaily.com

INTERVIEW WITH CHARLOTTE WILLIAMS

VICE PRESIDENT CONTENT AT CANNES LIONS Written by E. Ryan Ellis

AList chatted with Charlotte Wiliams, Cannes Lions’ vice president of content, about finding a happy medium when programming and who she's excited to see at the festival.

WHEN PROGRAMMING, HOW DO YOU FIND A BALANCE BETWEEN EVERGREEN AND NEW TRENDS? What we tend to find is that the topics tend to have slightly different nuances each year.

This year, for example, we have quite a lot of submissions about ageism. Whereas last year, they tended to be more around gender. I think this year we see that issue evolve slightly.

Some topics tend to change very slightly, like last year there was a lot around purpose, and this year we’ve seen that perhaps accelerate more into brand activism.

[There is also] the emergence of new technologies like voice, AI and machine learning; all of these new technologies to enhance customer experience and add value to it.

These issues do move on and change, to an extent, year on year. Most of the topics we selected this year are meant to be the pulse of the industry, and we check those with several CMOs. Some topics, like “brands in culture,” are probably always going to be relevant.

SIMILARLY, HOW DO YOU ANTICIPATE UP-AND-COMING MARKETERS LIKE GLOSSIER AND BALANCE THAT WITH INDUSTRY VETERANS? We made it a bit of an ambition of ours this year to get more B2C marketers and to get more of the challenger brands. Because I think they’re creating quite a lot of fear in [legacy] marketers. The Glossier session at Cannes Lions, last year, was one of the best sessions we’ve had. We got incredible feedback because the founder had a unique approach to marketing and distribution.

WHAT SPEAKERS AND PANELS ARE YOU PERSONALLY EXCITED TO SEE? I’m excited to see Alfonso Cuarón. I know he’s quite a predictable name but I always love hearing filmmakers’ creative processes. It will be interesting to hear his view on creatives in the industry and how he sees long-form content and to hear why he wants to speak at an advertising conference like Cannes Lions.

6

7

INSIDE KABAM’S IN-HOUSE REBRAND 8

9

Written by Jacqueline Fernandez

After 12 years, three offices, dozens of games and $300 million in yearly revenue, game developer Kabam has decided to rebrand.

Out goes the “bomb” image and in comes a bold, ombré orange ‘K’ and a new typeface.

The project was incredibly intensive for the company. For the last two years, Kabam’s team has listened to their users feedback to incorporate them into the rebranding process. They didn’t want their players just to love the games but also the changes surrounding the entire brand.

It took a year for Kabam to complete the rebrand and according to the company,

a South Korean game publishing company.

It was a rough transition for Kabam, but the challenges made them who they are today. The new logo is a representation of Kabam’s resurgence.

“We wanted a brand, a logo that would capture that multiplicity of emotions and experiences, as opposed to the static logo that is more in line with the old days of the web,” said Tim Fields, CEO of Kabam.

Fields has been making games and software professionally since 1995 and his resume includes Microsoft and Capcom.

it’s more than just an updated label—it’s a

“It really took us about a year after that

visual example of how far they’ve come. It’s

acquisition to get back on our feet and

blood, sweat and tears.

figure out who’s who and [what] the world

When Kabam was founded over 10 years

will look like. That kind of thing is trans-

ago, the Motorola RAZR was alive and well, and the thought of playing a video game with other people on your phone was

formative to a company,” Fields added.

The rebranding isn’t just representative of Kabam’s technological advances, business

fiction. Kabam was originally conceived by

changes, but also indicative of the sense of

Kevin Chou, Michael Li and Holly Liu un-

community at the company.

der the name Watercooler, to connect sport and entertainment fans on various social media platforms.

Instead of contracting out the job, the gaming company put together an in-house team that consisted of multiple disciplines

In 2009, they launched the game King-

to work on the brand project. They wanted

doms of Camelot on Facebook and trans-

to guarantee representation and input

formed into a gaming company. In 2016,

from intersectional views and backgrounds

the company was acquired by NetMarble,

within the company.

At one point, Kabam finished a new logo design but came to the realization they needed to step back, and eventually concluded they needed to scrap it. The team engaged in healthy debates and worked on communicating with each other to make sure they were on the same page. It was

BEFORE

10

vital everyone was happy with the project.

than just a new logo, it was an essential process for the company itself.

“We have a very strong culture of gaming; we play our games together. Every single day. My mom would say, ‘Tim, you don’t do anything at work but play games.’ I don’t think that’s entirely true, but I do think that that’s one of the things that allows us AFTER

to keep a small-company-feel that remains

“I don’t know exactly what the final cost

very important to us.”

was, but I will tell you that it is insignificant to me compared to what we accomplished which is to make sure that everybody here at the company really loves the way they’re represented now,” said Fields.

“I wish you could see everybody here in Vancouver wearing their new shirts.” The rebranding process took an enormous amount of internal resources. Kabam did commission a video announcing the new logo from an outside vendor. The 1:10-long video appeals to consumers’ emotions while playing games and kicks off with blue butterflies forming the new logo with the words “Embrace zen-like calm,” alongside meditative music. The colors gradually change as the video progresses and it finishes by declaring “Unleash your emotions, experience Kabam.”

“We wanted to celebrate all the different emotions that players experience, while they are playing our games. And we also decided to encourage some of those emotions a little bit more. It’s really representative more of our personality: we are passionate, we are fighting and gaming and adventurous. That’s the whole basis of the rebrand,” said Callie Jenkins, Kabam’s senior director of product marketing.

Kabam’s rebranding turned out to be more

11

JURYQA

REI INAMOTO

Founding Partner at Inamoto & Co

Jury President Digital Craft Lions

What were your thoughts when you were appointed jury president of the Digital Craft Lions?

I was very honored. This is the second time that I’ve been asked to be a jury president at Cannes Lions. The first time was 2013. I left my previous agency at the end of 2015, and I started my own company in 2016. When I was at a big agency, I used to go to Cannes almost every year. But stopped going, because the focus that I started to move into wasn’t quite advertising. But now, everything is merging into the same territory.

What did you learn from your first time as a Cannes Lions jury president?

Last time when I was a jury president at Cannes Lions, it was in the Mobile category. I saw work that I had not seen and back then what ended up winning as the Grand Prix of the category was something that I had not seen and something quite easy to miss. But when you stopped and thought about it and when you debated about it with other jurors that it became a clear standout when it came to award the top prize. To answer your question in a direct way: I think it’s important to allow yourself to be surprised.

How do you think your professional experience informs your ability to judge?

From early on in my career, I’ve always enjoyed coming up with ideas, and I’ve always enjoyed making ideas happen. I think [that] is definitely one aspect of judging that— it’s not just about coming up with ideas, but it’s about bringing ideas to life. You have to do it with ingenuity but also with mastery of whatever technique that you’re using.

12

The parameters of the Digital Craft Lions are experience and execution, what else do you personally look for when judging?

Conceptual depth or conceptual twist is important to make ideas work. Part of it is about the execution and then the craft, and part of it is about the idea itself. I’m judging a category that looks explicitly for craftsmanship. So, perhaps there’s a bit more emphasis on craftsmanship than other categories but on the flip side, just because you even have a good idea, if your execution is bad, then that’s not going to fly.

There’s a lot of debating among the jury, how do you make sure that’s a positive experience?

I was thinking about a similar topic the other day: What do I want to get out of being a jury president, and what do I want to get out of specifically this category? I want to be able to look back say three, five even 10 years or so and still say you know that piece of work that we chose was groundbreaking or industry-changing or mind-bending. The first time I came to Cannes was in 2005, and there are very few pieces that I can still remember, but those pieces [I do remember] had an impact on me or in the industry in general.

It’s interesting that AR and VR are in this category because I wouldn’t say there is really a standard for how that is represented in media and advertising. Can you talk a little bit about how you’re approaching those awards?

I was thinking about a similar topic the other day: What do I want to get out of being a jury president, and what do I want to get out of specifically this category? I want to be able to look back say three, five or even 10 years or so and still say, “you know, that piece of work we chose was groundbreaking or industry-changing or mind-bending. The first time I came to Cannes was in 2005, and there are very few pieces that I can still remember, but those pieces [I do remember] had an impact on me or in the industry in general.

13

JURYQA

PJ PEREIRA

Creative Chairman at Pereira & O’Dell

Jury President

Social & Influencer Lions

Can you take me through your experience on Cannes Lions juries and as a jury president?

This is my sixth time judging at Cannes and third time as a president. My first time judging was Cyber, a long time ago. Then, I was [jury] president of Entertainment two years ago, I judged Titanium last year, and I’m the president of Social & Influencer Lions this year.

When you were president of Entertainment in 2017, you actually published a book of essays from that experience.

Yes. What happened there is that Entertainment is such a young category. It’s reminiscent of Cyber and other things that Cannes Lions have been doing.

When we finished, we looked at the work that we picked and felt like it was the best work and a great representation of the state of the world.

But, there was a lot of the discussion and [we felt] the richness of those discussions would be lost [if we didn’t write them down]. We said, let’s try to put it together in a book, I organized chapters with the jury. I put it together for like six or seven months and came up with that. It was another first, right, the first book written by a jury. It was pretty successful, for a couple of months, it was the number one best selling book on Amazon in the media category.

How does your professional experience inform the judging process?

I think the life of a creative director, in a certain way, is similar. What I have to do here at the agency a lot of times is come and talk to people about ideas and if I liked them or not. You creatively direct mostly with your taste and your impression of the world. And you bring that to the jury.

14

One thing is to go in there to be a judge. When you go there as the president, there’s an extra responsibility of helping people figure out exactly what they are feeling. Not just have your opinion about things. But help the group get to the best conclusion that they can because the winners are going to be seen as a reference point for the next seven months to the following year. There’s something very unique about Cannes Lions and how the discussions happen.

The recommendation that I always give to the jury is that “we need to leave our opinions behind because that’s the one festival where we are not there to teach the world what we think that category should be. We are here to learn on behalf of the world what it’s becoming.

As jury president, how do you deal with the debate and decision-making?

Half of the jury will be social media people who have never put a foot in an agency, the other half will be advertising people that have never worked in the social media world. When put together, we can either go to war with each other and try to prove a point, to try to define that our point of view is better than the other. Or, join forces and say “Okay, we have two very different perspectives and let’s see what really stands out for both [of us]” and be open to being checked to really pick the best work of the year. My recommendation is going to be to keep their hearts and minds open, and it all starts with leaving our opinions at the door.

I think that if you have to handle a debate that’s already a problem. Ideally, it all comes to setting up the mood in the beginning, so everyone is there with a positive mindset. If we focus this discussion on the reason why people should love something and not the reason why you should hate something, then the selection becomes the highest note.

15

THE SPINNER AND THE FAUSTIAN BARGAIN OF ANONYMIZED DATA Written by Lauren Arevalo-Downes

For the price of just $29, everyone can harness the power of targeted messaging and use it to persuade a chosen target to quit smoking, commit to a relationship, stop eating meat—virtually anything.

It’s called The Spinner.

By surreptitiously sending a cookie to omeone via a link, that individual becomes part of a small target set of lookalikes that receive 10 pieces of content and 180 impressions intended to

understand and utilize without needing to know the in’s and out’s of programmatic distribution.

Shefler closely guards the details about his operation and was reluctant to provide his own background information and contact info to AList. According to him, The Spinner employs about 10 people for its consumer product and partners with a British agency for nameless larger brand clients.

convince them of something.

The Spinner, which launched in April 2018,

Of course, what The Spinner is doing, as

looking to sow seeds of influence among

marketers know, isn’t a new tactic.

The company, while incorporating some proprietary tech, is using existing targeting tools that have been developed

by Facebook and Google.

Spinner’s CEO, “Elliot Shefler” just presents it in a way that the average consumer can 16

has sparked some interest among users their relationships.

“Every day we have many requests with many different messages and goals,” said Shefler in a call with AList.

He also vehemently believes in the power of using this targeting and social media to persuade.

“Definitely, there are some success stories,”

those you already have a relationship with.

said Shefler, citing an example of a client

“The value is in retention, not in the acqui-

who wanted their son to not quit college by

sition,” he said.

delivering content about college dropouts.

“If the message is tailored to the recipient and you repeat it frequently enough —very powerful.”

He related a story about one insurance company he was commissioned work on, where he would target the insurance agents at the company to “brainwash and manip-

In a post-Cambridge Analytica

ulate” them and change the perception of

environment, an increasing number of

the company itself with the goal of retaining

consumers are becoming more concerned

those agents.

about how targeting tools and consumer data could be leveraged outside of the scope of marketing purposes.

According to a study by Janrain in 2018, 57 percent of 1000 consumers surveyed cited the Cambridge Analytica scandal as the reason they shifted their opinion on concern around data privacy and security.

The conversation prior to this moment, however, has been concentrated on personal data and the responsibility of protecting and effectively managing the

“We planned a similar campaign with a big pharmaceutical company that was targeting doctors (not patients—doctors) with articles about the benefits of a certain medicine.”

Shefler himself does not have any social media accounts, in part it seems to guard himself against the very tools he is monetizing from and also partly because of the nature of his work. It is hard to tell if this is pragmatism or paranoia—if he has truly seen what lurks beneath the hood.

data of individual consumers. While GDPR

In an email following our call, he used the

has gone a long way to hold accountable

common adage of those in tech—“If you’re

companies to protect this data, should we

not paying for it, you’re the product”—as

also be worried about anonymized data

an answer to his philosophy on privacy and

and targeting if it can be used by anyone

when pressed about whether he feels the

for any purpose?

same targeting tools he leverages for The

Grouped into little factions based on our interests, our purchase histories, our political beliefs, our jobs, we’ve been assuaged by the promise of our user data not being personally identifiable by third-parties, and therefore not susceptible. (Never mind that this has already been proven untrue.)

As Shefler is quick to point out, a key difference in what he provides with his expertise isn’t about using his technology

Spinner could be vulnerable to possible misuse, his response was matter-of-fact: “I would prefer using the word 'effective' instead of ‘vulnerable.’ The answer is: highly effective.”

“If the message is tailored to the recipient and you repeat it frequently enough—very powerful”

to reach the broadest swath of potential customers, but rather about honing in on

17

HOW WILL

5G

IMPACT MARKETING?

Written by Anne Bouleanu

The future of marketing will happen in 5G. That’s what’s been promised, but the question remains—when will the rise of 5G fully take place, and what will it look like? While tech advancements and achievements in digital marketing are indeed speeding up, a McKinsey study predicted that, considering the significant build-outs that will need to take place to foster 5G adaption, the industry shouldn’t expect 5G to gain traction on a large scale until at least the early 2020s. With just a few years to go before 5G takes the stage, now is the time to examine just how 5G will impact marketing and how advertisers can prepare for what’s to come.

THE 5G IMPACT While 5G has not yet been fully rolled out, many marketing experts expect 5G will be transformative. The latest 5G technology will be able to process significantly higher amounts of data at far greater speeds than current 4G devices. In December, AT&T announced they’ll be introducing a 5G hotspot with speeds 10 to 100 times faster than current 4G technology.

As a result, more users will be able to access the internet on a greater number—and vari-

es and smart cities infrastructure.”

As users can access content at a rapid-fire pace, marketers will have more opportunities to reach their target audiences.

Conor Mason, principal of Punchkick, predicts the introduction of 5G will also affect user experience, consumer demands and data collection.

“marketers will have more opportunities to reach their target audiences”

ety—of devices at once. Consumers will be

“One of the biggest challenges with gather-

able to download everything from movies,

ing data from mobile users today is network

games and TV shows to virtual reality expe-

reliability—it’s tough to upload app data or

riences from their smartphones as well as

analytics data reliably when the user might

other devices, all at speeds that will greatly

be experiencing subpar network condi-

reduce loading times.

tions,” Mason said. “But 5G offers greater

Susan Borst, VP of mobile at IAB, emphasizes just how broad of a reach 5G will have, and as a result, how broadly it will impact marketing.

“As a result, more users will be able to access the internet on a greater number—” “While it’s easy to think of 5G’s impact on mobile devices,” Borst said, “What makes 5G

range, improvements to MIMO (multiple-input and multiple-output) for congested networks, and overall increased speeds to send more data quicker.”

INCREASING REACH While exciting, marketers are sure to face

so exciting is its on impact everything from

challenges when adjusting to 5G technolo-

mobile to so much more, including desktop,

gy, including meeting increased consumer

IoT, OOH, wearables, drone delivery, manu-

expectations and extending to one of today’s

facturing, analytics-driven retail experienc-

biggest marketing challenges—ad blockers.

19

“While exciting, marketers are sure to face challenges when adjusting to 5G technology”

As 5G is adopted and download times de-

The rise of 5G may present opportunities

less time to load. Advertisers can also use

for advertisers to reach consumers who would otherwise use ad blockers. As pages load more quickly using 5G technology, marketers may have an opportunity to introduce content to consumers without those users becoming frustrated as ads slow down their browsers.

A 2017 report by AdBlock Plus and Global Web Index found that 40 percent of those surveyed had used an ad blocker within the last month, but of those respondents, just 22 percent utilized ad blockers on their mobile devices.

“As pages load more quickly using 5G technology” Respondents gave a variety of reasons why they use ad blockers—33 percent said they

crease, marketers may be able to find ways to reach users who are less inclined to use ad blockers as ads, as well as websites, take this opportunity to develop innovative solutions in advertising. With VR, AR, business intelligence and improved data collection on the table, now is the time for the industry to focus on digital innovation.

“The marketing industry needs to think about 5G as an opportunity to reinvent their offerings in the mobile space,” Mason said.

“Experiences that were once relegated to WiFi are now going to be possible everywhere—what kind of sophisticated mobile apps would make sense in those contexts?”

Borst anticipates significant improvements in live streaming, as well as more accurate geofencing and next-generation VR, in addition to overall improvements in download times.

used those blockers to “speed up the time

“With enhanced data in real time, the win-

it takes for things to load on my device.”

ning trifecta of getting the right message

Approximately 37 percent of respondents

to the right person at the right time will no

said ads “take up too much screen space and

longer be a pipe dream,” Borst said.

get in the way,” while 40 percent said they

Even while preparing for the adoption of

found “online ads intrusive.”

5G and the opportunities it presents, ad-

20

vertisers should anticipate the rollout be a

public policy landscape in the US and

gradual one. This transitional period pres-

abroad and the impact of what this means

ents its own set of marketing challenges.

on data collection and use.”

“The biggest challenge in embracing 5G will

The marketing industry faces unique

be understanding that we will be in a 4G/5G

challenges with 5G, as well as unique

hybrid world for a long time,” said Seth

opportunities for growth, innovation and

Dobbs, VP of engineering at Bounteous. “…

creativity. It may not be here tomorrow,

Any marketing effort that embraces 5G will

but 5G is on its way, and when it arrives,

still need to consider a deprecated experi-

advertisers should be prepared to keep up

ence for 4G users.”

with technology and ultimately, to keep up

To keep pace with 5G advancements, Borst recommends getting on board with the changes as soon as possible, as well as to prepare for shifting U.S. and international data collection regulations.

“…Any marketing effor that embraces 5G will still need to consider a deprecated experience for 4G users”

with consumers as their everyday online experiences evolve.

“If applicable, creative should be developed based on assets that can be mixed and matched to provide the most relevant messaging to consumers,”

“If applicable, creative should be developed based on assets that can be mixed and matched to provide the most relevant messaging to consumers,” she said. “For marketers who have been slow on creating video assets, now is the time to ramp up efforts and make sure their infrastructures are ready. Finally, as is the case today, marketers must be cognizant of the evolving 21

MASTERCARD CMO RAJA RAJAMANNAR:

“Focus On Reinventing Yourself, Even When Things Are Going Very Well” Written by E. Ryan Ellis

Mastercard’s Raja Rajamannar is among the most publicly visible chief marketing officers in the world. A marketer of grand vision, in conversation Rajamannar dispenses wisdom with the articulation of a worldly sage. Currently, he sits on the board of directors at Ad Council— a month ago he won WFA’s Global Marketer of the Year award and only two months later was named the trade body’s president.

Rajamannar joined Mastercard as the company’s chief marketing officer in 2013 and in the years since has raised the fintech company’s brand equity to new heights. For example, in Interbrand’s 2013 Best Brands list, Mastercard was estimated to have 4.2 billion in brand value—after five years with Rajamannar handling marketing, the same report lists Mastercard’s brand value at 7.5 billion. In a conversation with AList, Rajamannar talks about personal reinvention and the phases of Mastercard’s brand evolution.

“Priceless” is a standard of storytelling, what do you find important in the process of continuing that legacy for new audiences?

way: 630 million devices have ad blocks

Two fundamental aspects. The first one

be going to the old model of advertising?

for me is to retain authenticity and con-

The answer is, “No.” Just to be provoca-

tinue the things that have been working

tive, I keep saying, “Storytelling is dead,

well for us. Which is to tap into the human

advertising is dead.” It’s all about “story

truths, identify a connection between the

making,” which is experiential marketing.

brand, Mastercard, and what is priceless about it that you can deliver to the consumer. And of course, being authentic, not fake and not forced.

that we cannot reach. They’re even paying money to keep the advertisers out by going to Netflix with [zero ads]. If that’s what the consumers are saying, should you still

We started with “Moments,” that was our first phase of our evolution. What we do is we create and curate experiences for our people, our customers, consumers, that

The second is to evolve in keeping with

money can’t buy. You can’t buy them for

the changing times. Consumers have

money, but you get them because of Mas-

changed quite a lot. For example, Price-

tercard. It’s these kinds of small things or

less, in the past, used to be an advertising

giant things where a huge artist, like Jus-

platform, it is a storytelling platform. But

tin Timberlake, will come to your home

a lot of consumers have started tuning out

and spend a day with you. It cuts across

advertisers, then putting ad blocks in a big

the entire spectrum. Because we have 1.8

22

billion consumers around the world, and

relaunched our entire brand logo by styliz-

we have to be relevant to that entire spec-

ing it. We took out the capital letters from

trum. We create these priceless moments, and through that, we acquire a lot of sponsorship assets and convert those into experiences for our consumers. The third phase of our evolution, which is right now, is what we call “from moments to movements.” It’s all about priceless movements.

We say, “Start something priceless.” It could be as simple as keeping your phone away when you are having dinner and doing something to start conversations in your family or your friendships, and it will change the dimension. Or, it can be adopting a dog or making a difference in a child’s life or changing the world. We started this whole thing, “start something priceless” as a new platform for the last few months now.

This is how we evolve, on one level. The

our logo, which was more formal, to make it more informal and approachable.

Was the ultimate goal, of taking away the type, realized at that point?

Absolutely. That’s the reason why we removed the name from within the logo and brought it out as the first step. And then from here completely. That’s how we did it. We had to be looking three or four steps ahead. It worked really well for us and about seven weeks back is when we announced that the name would be dropped altogether, and it would just be the two circles.

Then, of course, the sonic logo.

I believe that we are the first brand, which has gone as deep and comprehensive for the sonic brand architecture. We have our 30-second melody, which is featured in all

other part of it is on the brand side. The

our ads and shows, trade events and spon-

Mastercard brand is over 50 years [old].

sorship events. If you call Mastercard office,

What we are trying to do is: how does a

you’ll hear the ring; it’s the hold music. The

brand evolve as well? Two years back, we

cool thing about this melody is it’s very

23

neutral. It doesn’t take over something; it should support. Number two–it should be likable. Three, it should be hummable. You should be able to hum it because we want the melody to be memorable; it should be simple, but not simplistic. If it’s memorable, you’ll associate it [with] the brand. And finally, it should be highly adaptable around the world.

Through your career, how have you as a CMO and a marketer learned to let go of micromanaging things?

Three things. First, you need to have top talent. Surround yourself with the best and most amazing people. If you have really exceptionally competent people around the globe, your life becomes easier.

“If you have really exceptionally competent people around the globe, your life becomes easier” They own it, they drive it, and they do much than you can do it yourself. That frees you a lot of the time to focus on the big picture.

Number two, what you also do is con-

brand, one of the very important elements was ‘acceptance’ sound. Whenever you are going to a shop and your transaction goes through successfully, you hear the MasterCard sound. It’s extremely [short], 1.3 seconds or less than 1.3 seconds. Now, the concept was created centrally.

The day before yesterday, I got a video from Dubai, showing that they have got a band playing the melody at the Dubai Jazz Festival, where the artists were singing our melody from the stage and making the crowd

stantly focus on innovating yourself and

actually to follow in a big wave. And people

reinventing yourself, even when things

could pay, not with cash, but by singing the

are going very well. Because you can get a

melody correctly—they were rewarded. That

little complacent, comfortable and happy

idea didn’t come from global; it did not

and that’s not a good thing at all. You have

come from me sitting in my chair. Local

to be on your toes and keep thinking.

people are taking it.

For example, when we started in 2016,

It really starts with having a fantastic

when we first announced our rebranded

theme: pick a dream that is big enough,

logo, at that stage we could have said, “this

chase the dream that is big enough,

is working really well, let’s sit tight on

inspire ourselves, be humble, never get

that.” But we said, “let’s take this further.”

complacent or comfortable and just keep

When we wanted to launch the sonic

constantly going at it.

24

How do you measure brand moments and experiential marketing?

I’m an engineer by training, so if I don’t measure it, I don’t feel comfortable about it. The key thing is we have solid KPIs and metrics. We measure how we are doing on the brand, how we are doing on the growing the business profitably and how are we growing in a competitive advantage manner. The last part, meaning how are we perceived compared to the competition, and are we increasing the gap and are we building a moat around the company that is not easy for somebody else to jump over.

And we measure it very, very diligently.

To give you an example on the brand side: several years back, there was one of the gold standards, one of the methods of measuring a brand’s strength was BrandZ which is done by Kantar Millward Brown and they do it for 10,000 brands around the world. We were at about 89 a few years back. Today, we have come all the way down to 15. From 89 to 15 we have improved in my tenure.

In the US, we have become a top 10 brand; we are number 10. This shows that our strategy as a company is executed well and it is working well for us. Business is growing very well.

I will not give you all the financial stats, but we can see in all the disclosed financials that the business is growing very nicely and it’s being appreciated by the market. That’s number two.

brought some unique advantage or some purpose-driven activities in the market.

Again, we are doing well in that space. I feel really good about all three dimensions.

Can you talk a little bit about CMO accountability and having to justify a budget every year or quarter?

Fifty percent of my career, I was on the business side—I was managing PnLs—and fifty percent on the marketing side. And I keep joking that fifty percent I was in business, I used to give hell to the marketing guys. Now, on this, the karma comes back with interest.

“This shows that our strategy as a company is executed well...”

But the good thing is that because I have been on the business side, I understand numbers, I understand what matters to the CEO and the CFO. Therefore, I’m able to appropriately tell my story in a way that matters to them, speaking their language.

If I talk to the CEO or a CFO about how my brand awareness has gone up this much, my predisposition is this much and my promoter score is this much—that is all marketing mumbo-jumbo.

Their questions will be, “what has it done for the business’ growth?” or “what has it done for the top-line and bottom-line growth?”—that’s what I have to talk to them about. The key thing is to connect the dots

Number three, when you look at the prefer-

between the activities of marketing to the

ence of consumers. Say I prefer Mastercard

outcomes of the business. And that’s where

to somebody else because these guys have

a lot of my time goes [showing them the 25

data] very credibly. It’s not some fluffy stuff

Then you have, very importantly, things

that you cook up; it has to be very authentic,

like technology. Many CMOs have tech-

credible and show those links. Just say, “We

nology budgets which are bigger than the

are doing this and this is what’s happening.”

CTOs of those companies. PR and market-

And digestible; you can’t hide behind jargon.

ing are no longer two different functions— that’s one integrated thing.

What do you think the next generation of young CMOs should be most concerned about, in terms of their career?

I’d say, four things. First and foremost, they should be concerned about the prominence of marketing being lost. Many companies have eliminated the role of CMOs and replaced them with chief growth officers, chief revenue officers and so on.

This is what I was saying before: if a CMO is not able to justify why the investment is happening and not able to connect the dots, if you are not helping and you are sucking up millions and millions of dol-

The point is, to be a successful marketer today, you have to be multifaceted, you have to be a true general manager—a general manager who understands digital, technology, data, finance, PR and can integrate all that and come up with very compelling campaigns. This is something that they have to strive for. If you’re at a company as a young marketer, you should try to get experiences by rotation across many different functions.

“Today's marketers are very different than marketers even five years back”

lars, if they are not able to give convincing

The third thing is the rate at which the tech-

answers, they’re out.

nology is developing like blockchain, vir-

Some other companies, including some of the top-notch consumer marketing

tual reality, augmented reality, people can become obsolete very fast unless they stay

companies, have got away with the role

on top of it and invest consciously—time to

of CMO. They should focus clearly on un-

study, learn and be up to date. I think learn-

derstanding the connection between their

ing will be mighty critical for them.

activities and business results.

The last one is from my perspective. As

Second, today’s marketers are very

[young marketers' lives] are evolving, the

different than marketers even five years

work-life balance will become even more

back. The whole marketing [industry] has

disrupted. As a young marketer, you have to

changed in the last five years. I have been

make sure that you are giving enough qual-

in this field for 35 years; what happened

ity time for yourself, your wellbeing and for

in the last five years is completely differ-

your family’s wellbeing. Otherwise, this is

ent than the preceding 30 years. Why?

becoming a 24/7 world, and you can become

Because you got digital technologists, AI,

totally swamped and be lost.

data, unbelievably big data, small data, all kinds of data.

26

SPONSORED CONTENT | DISPLAY NEWSLETTER SPONSORSHIPS | WEBINARS CONTENT STRATEGY | EVENT PARTNERSHIPS CUSTOM RESEARCH + REPORTS | PODCASTS CONTACT SALES@ALIST

In Three Acts A STORY

Written by Matthew Arevalo-Downes Photographed by Aaron Robinson

We’ve selected a rosé to match your creative persona

with the expert help of our friends at Everson Royce in Pasadena, California. Perfect for a sensible toast after winning a Cannes Lions. Which are you?

28

29

30

THE ORIGINATOR Peyrassol

In the middle ages, an outpost was settled in the Côtes de Provence region of France to chill thirsty Crusaders with super-relaxing rosé. It was a great way to avoid dysentery.

The output from Commanderie de Peyrassol continues to help wayfarers take it down a notch. Everson Royce says: The reason rosé blew up on an international scale. A blend of Cinsault, Grenache and Syrah.

31

THE WILDCARD Major Wines

Major Wines is the passion project of Andrew Major, a central coast winemaker who was bitten by the rosĂŠ bug. He makes tiny batches of 100% Grenache rosĂŠ from the middle of California and should probably quit his day job. Everson Royce says: Locally-sourced fruit, extremely limited batches.

32

33

34

THE UPSTART Angeleno Wine Company

It may not be middle-ages-old but ‘The Meadow’ from Jasper Dickson’s Angeleno Wine Company is a labor of love. After making wine in his home in Mt. Washington, Dickson set out to revive L.A.’s wine-making scene. Take a sip of a little blood, sweat and tears, and a lot of Graciano. Everson Royce says: Dickson built the first winery in L.A. in over a century.

35

HOW TO LAUNCH A MILLENNIAL

BEER BRAND Written by Lauren Arevalo-Downes

Joshua Zad has done this before. The founder of Alfred Coffee (and Tea), a chain that is ubiquitous throughout Los Angeles and has expanded to Austin and Tokyo, has not just built a brand, but a refined lifestyle to go with it. One that is eminently Instagrammable with its “But first, coffee ®” cups.

His newest brand, Calidad Beer, has been engineered with the same focus on lifestyle and identity.

One step inside the “Casa de Calidad” and

melted-brick fireplace and hanging succu-

the vision for the brand comes into full fo-

lents ties back to that iconic Santa Barbara

cus. A 1920s Spanish colonial home tucked

aesthetic.”

away from Melrose Place where two of Zad’s Alfred outposts are located, the house is intricately curated with a modern Southwest vibe. Paddle cacti, a horseshoe and cow skull hang from the walls and stylishly worn rugs run throughout the space. There is a pool table, a set of rules on the wall encouraging photos and a beer tap in the kitchen.

It was made to be experienced and enjoyed.

“Calidad is a SoCal brand at heart—specifically Santa Barbara where our beer is brewed,” said Zad to AList.

For Zad, emphasizing brand experience is the most direct and engaging way to reach modern consumers—especially those who identify as discerning consumers of coffee and beer.

“Calidad is a SoCal brand at heart—specifically Santa Barbara where our beer is brewed” “These days, customers are extremely brand

“With that in mind, we wanted to create

and tech-savvy, so it is critical to plan out a

an event space that captured that same

holistic brand experience from introduction

essence and lifestyle. Everything from the

to a product all the way through its

tiled archways and hand-dyed rugs to the

consumption.”

37

In engineering that brand experience, Zad

an audience and interest around Alfred al-

has a clear understanding of what has worked

ready, it was a clever way to market the beer

for him. He refers to the key pillars of his

product before it existed.

success as “The Five C’s,” standing for coffee, charity, community, culture and cool vibes.

“The question we were faced with was, ‘how do we get people obsessed with our beer

“A successful brand not only has a strong

brand before even having liquid in [the]

identity but a fully-fleshed out lifestyle to go

market?’” said Zad.

along with it and must be a quality product that tastes good. You can’t cut corners on any of these three areas.”

The brand also blended old-school-meetsnew-school with how it has approached marketing as well. Calidad relies heavily on

Zad developed the logo for the brand with

Instagram where its lifestyle curation and

design house LAND, known for its lived-in,

visual identity read loud and clear; uses

modern-Western aesthetic, having worked

texts to interact (it’s 253-300-HOLA) as well

with other brands like Stumptown

as billboards and murals to draw attention

Coffee and Poler.

to the brand.

“It was a really inspired process,” said

“We like experimenting with different adver-

LAND co-founder/co-creative director

tising mediums. In L.A. specifically, which

Caleb Everett to AList.

has a very strong car culture, out-of-home

“What’s speaking to millennials right now is just authenticity. We live in a world where people that do what we do typically do mar-

marketing is extremely effective and allows people to organically discover new brands as they travel around town,” said Zad.

ket research and focus groups, and they try

Now that the beer exists and distribution is

to figure out what they think people want.”

expanding throughout California, Calidad is

Inspired by Mexican-style beer, particularly Pacifico, Calidad’s logo gives the perception the brand has been around for some time. “When conceptualizing Calidad, I

taking part in events throughout the region, like Taco Madness, where Zad looks to interact directly with consumers and provide them an opportunity to taste the beer.

knew I wanted a look that felt authentic and

Despite having raised a seed investment

familiar—I wanted people to think, ‘have I

from the founders of Sweetgreen and MeUn-

seen this before?”

dies, among others, how Calidad’s market-

“We just wanted to create what felt like we wanted to see out in the world.”

And it has, in a way. Zad first launched a merch shop before the beer was ever sold, with t-shirts, rolling papers, patches and more “because the designs were cool.” With 38

ing is taking shape feels very grassroots.

“We are taking a brand-first approach, building an entire lifestyle around a simple product.”

HOURSIN

Written by Marina Kapralau

CANNES 09:00 – 9:30

Enjoy a cup of cappuccino and a chocolate croissant at café La Californie. Pick a spot inside the old brick building or a street-adjacent patio seat.

10:00 – 12:00

Partake in Cannes’ retail offerings. We recommend checking out French pharmacies for beauty products and Clergerie for a pair of beach-appropriate shoes.

12:00 – 13:00

As the day heats up, you’ll want to cool off. We recommend renting a scooter at Yourent Cannes and zipping through the picturesque Sainte Agnes.

13:00 – 14:00

Time to eat again. Pick up a fresh baguette (from any grocer) and some cheese from local fromagerie Ceneri Cannes. Find some shade at one of the sea-view terraces and pair the meal with some infamous Provence rosé. But don’t drink too much, you have a lot to do.

14:00 – 16:00

The heat is on. Get your hands messy with ice-cream from Gelato Junkie. Jump in the sea afterward to cool off and clean off. Then, very importantly, take a much-needed nap because you’ll need it for the long night ahead.

40

16:00 – 18:00

Make sure to set your alarm to catch the golden hour. The light splays perfectly for all your Instagram needs. Head to the oldest part of the city, Le Suquet, to see candy-colored houses juxtaposed with gothic-style architecture.

19:00 – 21:00

Visit Le Troquet À Soupes for dinner. We recommend getting some raclette and the tartare charolais au couteau. You might even catch some local chanson.

21:00 – 23:00

All nights in Cannes start (or end?) at 72 Croisette, also known as “the Gutter Bar.” You’ll know the place by its neon-lit ‘72’ sign that faces the street corner—guests will spill out onto that same street as the night goes on.

23:00 – 24:00

For an upscale cocktail hit garage-turned-bar Le Tube.

24:00 – 3:00

Time to dance. Head to newly-opened Gotha Club on the edge of Pointe Croissette and bathe in the neon light while dancing the night away.

41

HARVEST HEALTH CMO ON THE LABYRINTHIAN TASK OF MARKETING CANNABIS Written by Kevin George

42

As the CMO of one of the largest public companies in the fastest-growing industry in the country, I’ll forgive those of you who haven’t heard of us (yet). That awareness is largely due to the federal illegality of cannabis combined with a series of marketing restrictions and challenges that exist uniquely in the cannabis space. I joined Harvest Health & Recreation Inc. after more than 20 years in sales and marketing with CPG giants like Unilever and spirits experience as the CMO at Beam Suntory. I had no prior experience in cannabis, but soon found several hurdles that have forced us to be creative in order to reach patients and consumers.

Choose Your Own Adventure

The major platforms, Instagram, Facebook, Google, Snapchat, all have self-imposed company policies that prohibit or severely restrict any type of cannabis-related advertising. Broadcasters also get to decide

Marketing has always appealed to me

whether they’ll run ads, but for the most

because our efforts create demand and the

part, have declined to do so. As a result,

creativity involved builds value and puts

we’ve chosen to invest significantly, and in-

a soul in companies. That has never rung

novate around, some of the more traditional

truer than in the cannabis space today.

channels to reach patients and consumers.

Thirty-three states, the District of Columbia and Puerto Rico have a patchwork of state-specific cannabis laws and regulations to follow—most similar—but several are vastly different. Which means you need at least 35 different marketing plans and strategies just to stay compliant (note: In our industry, smart companies have lawyers woven into every level).

While the beverage alcohol business was similarly state-specific, there have now been nearly 100 years since the end of Prohibition for the alcohol industry to find common ground and similar regulatory frameworks.

We are virtually at “the day after Prohibition” in the cannabis industry…possibly even slightly before it.

By focusing on patient programs, customer loyalty, physician outreach, email marketing, budtender education, CRM campaigns, geofencing and age-gated mobile targeting, we are developing a clear picture of who our customers are and the best ways to interact with them. That picture is equally female and includes many older demographics and more sophisticated consumers.

David Vs. Goliath You won’t find cannabis clients on the rosters of Madison Avenue’s most prominent names. Most, if not all, belong to holding companies who have yet to venture into

Once you’ve designed a compliant cam-

the exciting world of cannabis. Instead, a

paign, however, your options are further

creative network of forward-thinking small

limited on where you can actually display

and medium agencies have taken advantage

your final product. Social media—long the

of the level playing field with some of the

anchor of effective direct-to-consumer

biggest names and companies in

marketing—is almost entirely off-limits.

the cannabis space.

43

Earned & Owned For The Win Earned media has always been an incredibly compelling form of connecting with audiences, and in cannabis, it is worth its weight in gold.

There are so many facets of (and stories within) our company that are of interest to a wide range of audiences. We spend considerable time to share them with both the media and the public through our channels.

In a limited paid media environment, using our channels or the channels of others (influencers, tastemakers) to spread the word is critical. Ecommerce poses its challenges, even in the non-THC (psychoactive) aspect of the cannabis trade. Many believe the passage of the Farm Bill last December legalized hemp or CBD.

“Earned media has always been an incredibly compelling form of connecting with audiences, and in cannabis, it is worth its weight in gold�

In actuality, the new bill’s passage simply swapped regulation of the hemp plant from the Justice Department to the Food & Drug Administration. That means there remains a significant gray area around the legality of CBD and hemp products and has resulted in a limited number of banking, processing and back-end service providers.

Most importantly, while there are thousands of hemp-based CBD products on the

44

market, the FDA has yet to approve it for

and retail in each state to expand the reach

use in food, beverages or cosmetic products.

of brands to other markets. However, the

Patient data is of considerable importance and subject to stringent oversight; it must be treated just like any other sensitive medical information. Although we have personal information on our patients, we work closely to make sure they have opted in to any communication we may send their

logistics for rolling a product out require more investment, coordination and customization than any other industry. Companies are prevented from moving products across state lines and must instead produce and finalize SKU’s separately in each state in which they operate.

way, and their information is treated with

There has never been a time like this in

the utmost privacy.

our history—where the largest players are barred from entry, federal and state laws

The Coca-Cola Of Cannabis

and policies often contradict one another

Where there are challenges, there are

ecommerce are near-impossible to come by.

unique opportunities. We aim to build some of the first truly national brands in the category and establish a suite of household names in cannabis.

(or at the least pose serious confusion), channels to reach customers are severely restricted and basic services like banking and

However, there have never been so many Americans who support cannabis legalization no matter their politics or age.

Fortunately for me, Harvest will be there to

Due to our vertical-integration (operating

capitalize on this historic opportunity, and I

throughout the seed-to-sale process, includ-

will continue to have one of the best jobs in

ing cultivation, manufacturing, distribu-

marketing, making history every day.

tion, product and retail) we have an opportunity to move our brands throughout our industry-leading footprint of retail facilities in the U.S. We recently took Colors—one of our best-selling vape pens from Colorado where it’s well-known and beloved—to stores in Arizona and Florida. Soon, we will also be distributing in California.

“There has never been a time like this in our history—where the largest players are barred from entry, federal and state laws and policies often contradict one another...”

“Where there are challenges, there are unique opportunities” Where in the past a cannabis brand lived locally and only in the state it was grown and manufactured, our model allows us to use our scale of cultivation, processing

45

IS ‘DIRECT-TO-CONSUMER’

A BAD WORD? Written by Anne Bouleanu

The term “direct-to-consumer marketing”

says the DTC landscape has changed and

once conjured pictures of direct mail, bill-

has evolved beyond its unsavory roots. He

boards and late-night infomercials. Fast

doesn’t mind being associated with the

forward to today, where disruptor brands

term, citing the shift to digital as a pri-

have found a match with “DTC,” approach-

mary driver of the DTC revolution and, in

ing the tired model in new, fresh ways.

essence, its own rebranding. “Sure, [there

Still, the term “direct-to-consumer marketing,” has a dubious past and it’s one that can be difficult to shake off. So who’s excited to be part of the direct-to-consumer renaissance, and what’s the verdict on the loaded term?

FROM UNSAVORY TO SOPHISTICATED Cheesy infomercials with actors hawking products that would quickly break upon arrival (no COD) used to rule the world of direct-to-consumer marketing. For decades, top-tier brands stayed far away from the term DTC. Today, the model has shifted from infomercials to Instagram posts and personalized podcast ads in place of commercial breaks. John Harrobin, CMO of audiobook app Audible, 46

are negative connotations] if people think of DTC as Ginsu knife infomercials circa 1980,” Harrobin said with a laugh. DTC has proven to be a driver of innovation because it starts with an empathetic mindset–what are the needs of the customers, what are their current pain points–and building solutions that address those needs without being encumbered by legacy business models.

"DTC has proven to be a driver of innovation because it starts with an empathetic mindset–what are the needs of the customers, what are their current pain points– and building solutions that address those needs without being encumbered by legacy business models"

“I think premium digital services have

losing its share of the market to disruptor

changed what direct-to-consumer means.

brands that rely on DTC marketing.

Suzanne Grimes, president of Westwood

According to the IAB report, Gillette’s

One and executive vice president of corpo-

share of the men’s razor market fell from

rate marketing at Cumulus Media, talked

70 percent in 2010 to 54 percent in 2016.

about the evolution of DTC marketing

Much of that loss is attributed to emerging

from its unsavory history to a sophisticat-

competitors such as DollarShaveClub and

ed approach that today’s disruptor brands

Harry’s, both online razor companies that

have been eager to adopt.

rely heavily on DTC to reach consumers.

“In my early days in media, DTC meant something that was very bottom of the barrel, unsophisticated marketing,” Grimes said. “It was unsavory brands looking to reach consumers, considered the lowest tier of marketers, whether right or wrong. Today it’s the polar opposite—those DTC brands are seen as real innovators doing what more traditional companies are looking to do, as well. It’s fascinating how the paradigm has shifted.”

The paradigm is shifting not just for disruptor brands, Grimes said, but also for traditional powerhouse brands that only recently would not have considered including DTC in their marketing spend.

A recent report from IAB pointed out the growing changes in the DTC market and its effects on both emerging and established brands. Gillette, for example, still the leading razor provider in the U.S., is 47

Combined, those two brands increased

altogether, even if DTC is one of the only

their share of the market from 7.2 percent

things a group of brands have in common.

in 2015 to 12.2 percent in 2016.

Ben Witte, Founder & CEO of Recess,

Grimes said that, in opposition to years

a beverage company that sells canned

past when traditional advertisers stayed

CBD-infused sparkling water, doesn’t mind

far away from the DTC approach, major

the term being applied to the way Recess

brands are now asking themselves whether

markets itself to consumers. However, he

they should jump on the DTC train. Tradi-

says that the term can be limiting as Re-

tional brands, she said, are working to find

cess is pigeonholed with other DTC brands.

a place in the rapidly growing DTC field, where startups and disruptor brands rule.

“It’s fascinating how the paradigm has shifted” “At what point will brand advertisers—old fashioned brands—find that that con-

“I like the term ‘direct-to-consumer marketing,’” Witte said, “But sometimes we get lumped into these companies like Away and Warby Parker that only sell through their own retail channel, when we have an omnichannel approach.”

text, that medium and environment will

In that way, Witte said, the perceptions

be effective for them and enter the DTC

around the DTC label can sometimes be

market?” Grimes said. “I suspect that’s

restrictive. However, Witte has a different

coming fairly soon.”

idea of what “direct-to-consumer” means

Even for startup companies, where the DTC space provides a world of opportuni-

to him and his brand, a far cry from its humble beginnings.

ties to reach new consumers, some do have

“Direct-to-consumer is about having a

some trouble with the “direct-to-consum-

conversation with our community that

er” term. However, the trouble isn’t that it’s

enables and omnichannel distribution

associated with a low-brow past. Rather,

strategy,” Witte said. “The distinction be-

it’s because DTC has gone from a market-

tween us and many other brands is that the

ing category to a category of companies

Instagram is of equal importance as the

48

drink itself. These things work together.”

He’s fully engaged with the DTC model, interacting directly with consumers largely through social media, and says that, with DTC at the center of Recess’ marketing model, they “haven’t spent a dollar on outside advertising.”

“Direct-to-consumer is about having a conversation with our community that enables and omnichannel distribution strategy”

As more brands move into the DTC space, the term “direct-to-consumer marketing” is shedding its former reputation. Disruptor brands are leaning into the term, forecasting DTC as central to the future of brand marketing. “[DTC] is content, commerce, experience all working together,” Witte said. “I think that’s the future.”

Harrobin, who has embraced both the DTC model and the term at Audible, predicts DTC will become even more personalized in the future. That personalization is easy to adopt in the world of DTC, smoothly changing and tweaking campaigns as podcast hosts ad lib for companies and social media marketers create new posts each day.

“I’d bet on more one-to-one interactions between brands and customers that will lead to better understanding of customers and companies better able to provide a valuable experience,” Harrobin said. “More conversations and deeper engagement through omnichannel strategies that will strengthen relationships with customers.”

49

YOUTH MARKETER GREGG WITT For Brands, Collaboration Is Not Just A Trend, But A Survival Tactic Written By Jacqueline Fernandez

50

G

eneration Z, those born between 1995 and 2000, are now young

adults and many of them have entered the workforce. Marketers often clump

this group together with millennials, but they’re not the the same and marketers shouldn’t view them under the same lens.

Gen Z is less interested in mainstream platforms like TV and leans towards YouTube, Instagram and Snapchat. Gregg Witt says Gen Z refers to themselves as the “hyper-individualized generation.”

Witt, a youth brand strategist and chief strategy officer of Engage Youth, spoke to AList about some of the nuances of Gen Z—a group that is expected to surpass millennials in 2019 as the largest generation.

Witt co-authored the book The Gen Z Frequency: How Brands Tune In and Build Credibility, where he explains how the generation tends to be independent, diverse, engaged in social and political causes, and how they’ve developed an ability to filter information—like advertisements—extremely quickly.

51

Let’s talk about the growing importance of Gen Z for marketers.

“If you start off with importance, from the psychological perspective and from the matter of fact, there is more Gen Z population worldwide than any other group of people before them. It’s not only that there is this massive population, but it’s going to be a colossal shift in the consumer demographics. When Nigeria and Indonesia become the largest youth populations, you are going to see the market shift. The sheer numbers of creation, innovation, markets, new markets, that are going to come to 52

these countries. We see generations come and go—some things change, some things are similar, some are completely different— but this is pretty colossal.”

What do you think marketers get wrong about Gen Z?

“I think that a lot of times they look at Gen Z with almost a herd mentality, thinking all Gen Z'ers are the same and they are into the same thing: people, brands, society. This happens with millennials, too. With Gen Z, what a lot of the brands and marketers get wrong is that they are

interest group-based platforms like AskFM, with massive growing populations and there is an actual conversation happening there. There is less algorithm and there is more engagement. That’s just one angle. I think another very basic thing that brands often bypass is that they look at Gen Z today not at Gen Z in five to six years. Today they are teens and young adults and they’re very different segments.”

Can you talk about the connection between purpose-driven marketing and Gen Z?

“This is a matter of fact, and I thought it was [just] buzz before, but one of the pinnacle markers of Gen Z is that they are purpose-driven. I think part of it is, that [purpose-driven] is what you hear all the time from that age group, so you do tend to follow a bit. They don’t see [cause marketcontinuing to label Gen Z like they’re a

ing] as played out. They just really want to

herd of sheep or label them off that they’re

see that it’s authentic and it doesn’t have to

not so individualized. They’re not really

be grandiose. Gen Z really cares about the

looking at the cultural nuances. Insta-

story with brands and organizations. They

gram, Snapchat and YouTube are excellent

can see when the brand or the compa-

channels and platforms to reach Gen Z, but

ny—either really small Instagram brands

what a lot of the brands get wrong is that

to Fortune 500 ones—that they live and

there is a slow, steady but major migration

breathe their cause and that it actually is

from these mass, understood platforms to

having some impact.

the niche platforms, messengers and apps.

They’re missing out on the conversation.

They are not actually aware that the true, intimate, real conversations are happening in Discord, TikTok and YouNow and even Messenger App. A lot of people don’t understand that even Facebook Messenger is very popular with older teens and young

There is another important generational marker: their attitudes, views and perceptions of diversity. I find that in diversity, respect, and just [general] acceptance of people—we find one of the softer, beautiful, encouraging, refreshing things about Gen Z.”

adults. Utilizing all these smaller, cultural 53

What do you think has changed since we started tracking their habits?

“The reality of shoppable content and limited-edition products has become the demand. The idea of a really special product that’s associated with a certain content is becoming a trend that Gen Z wants, desires or demands. It will continue to increase, as Amazon and other brands continue to commoditize every category. Amazon has the power to affect the Targets and Walmarts and to commoditize everything. Those brands in the middle are scared and [they’re] going to need this cool special content [to survive].”

What types of brands are marketing best to Gen Z?

“Everything: fashion, technology, downloadable on-demand content, restaurants and food—being in that eco-system of relevant content because [brands] will be just missed if they are not. It starts going into the broader content discussion. The

different categories and genres, actually creates an opportunity to increase and grow a brand’s market. It becomes a survival tool.

Let’s just say that you’re a tailor that makes custom clothes and think you’re too big to be disrupted. If you never do collaborations with Twitch creators or Instagrammers, those smaller Instagram brands are going to slowly slice up all of your business. The competitors for your business on Instagram, for a specific example, it’s not like 1,000 or 5,000 but more like 10,000 or 100,000 competitors slicing up your market share. The [collaboration trend] is not just for excitement, surprise and delight, but collaboration for survival.”

How can brands avoid pandering to Gen Z?

“I would say that brands need to really leverage cementing their identity and make sure they are clear on their identity, value proposition, what they offer and what they don’t offer to the young people

big trend, this is a trend that I have a lot

or to the modern consumer. They need

of passion for, is collaboration. I’ve looked

to determine certain areas where they

closely [at the collaboration trend] saying,

contribute to culture. They can’t only be

“God, is this going to burst? Is this going

focused on smaller communities; they

out of the way?” Collaborating, even in

54

have to look at the conversions.”

What trends do you see developing this year?

“A lot more brands will experiment and get into AR activation this year, but the big trend that we are going to see is chatbot—and it’s going to be normalizing.

The chatbots are going to be more involved

Even though I say Gen Z'ers are highly social, it’s also a lonely place to be too. [They want to] be part of something important.

Ultimately, when it comes to the storytelling and how brands can be successful—it comes down to the true sense of belonging that the organization is providing. I believe in that.”

in what we are talking about. You are going to see much more truly conversational chatbots on the rise. I’m not going to claim to be the tech expert on it for sure, but that’s going to be the major trend.

It’s a little sad, but eSports will dominate traditional sports, as far as viewers. And we’ll see the evolution of eSports as culture and lifestyle; eSports brands, eSports apparel, and the actual complete lifestyle around eSports. It’ll be mainstream by the end of the year. Companies seem to have less and less control over the brand narrative.”

Where does Gen Z fit into this cultural shift?

“Brands [that] give young people an opportunity to be a part of the brand’s story, and an opportunity to further attain an inspirational goal, can be very effective and potentially more effective with Gen Z.

55

MAKE IT A HABIT. SUBSCRIBE FOR FREE.

AD

alistdaily.com

BECAUSE YOUR JOB DOESN’T END WHEN THE ROSÉ RUNS OUT.

AD

alistdaily.com