Knowing Your Audience

The World Cup runneth over with news happy and sad depending on which country you’re from. Insight into the context of a situation is always tremendously important; there are no essential truths, only whether people believe them to be true or not. For cephalopods, of course, it was a dream World Cup. Paul the ocotopus in Oberhausen, Germany, managed to guess with pure luck correctly predicted every one of Germany’s World Cup results, single-handedly raising the profile of these water-bound creatures and their ability to cogitate about the outcome of sports matches, out-predicting those boffins at Goldman Sachs. For those who enjoyed betting with this facade of insider information, it was also then a great tournament.

The results of the World Cup also tell us that people (and nations) deal with loss in different ways. Argentina was apparently one of the teams that had expected to do well in the tournament. As The Economist notes, France and England returned home to a disgusted populace; Argentina, after being thrashed 4-0 by Germany, came back to a hero’s welcome. This is not because the Argentinians are particularly cognisant of fair play or giving everything one can. For, when the team returned in defeat in 2006, the reception was a “non-event”, as opposed to the weeping on the streets that took place this time. The way people behave though, is not always due to a single linear circumstance. The article suggests the “tens of thousands of fans” who turned up to greet the defeated players was due to the political machinations of the not-so-squeaky-clean Kirchner couple, who currently preside over the country; an attempt to boost their own poor approval ratings by throwing their support behind football, after gaining much gratitude from the man on the street by taking football matches off a premium cable channel and making them available “over free airwaves”.

Elsewhere, broadcasters enjoyed the riches of their coverage of the event. In the UK, the FT reported that commercial network ITV saw “advertising revenues increase 45%… in June compared with the same month in 2009 due to the tournament”. In France, Telecompaper reported last week that “despite the national team’s poor performance”, around two million people watched some of the World Cup on their mobile device, according to a survey for La Tribune. Viewing was only possible after downloading “a pay application co-developed by Fifa and broadcaster TF1”. According to the study, “between 3 million and 5 million people, or 8 percent of French residents over 15 years old, watched highlights on the internet.” In the US, over 24m people watched the World Cup final, with the networks purporting to be “over the moon”. Indeed, despite some of the jingoistic rhetoric spouted by Republican mouths on the unpatriotic desire to play football, as reported by the New Yorker, football is growing massively in popularity in that country. When the US was sent packing after losing to Ghana, Nielsen recorded 19.4m viewers:

“It’s not just more people than had ever watched a soccer game on American television before. It’s also more people than, on average, watched last year’s World Series games, which had the advantage of being broadcast live in prime time. It’s millions more than watched the Kentucky Derby or the final round of the Masters golf tournament or the Daytona 500, the jewel in NASCAR’s crown.”

Again, like the example in Argentina, it would be easy to point to a simple, linear cause and effect correlation, in this case that the US is finally warming up to football, despite having a plethora of other sports at their obsessive fingertips. What these record-breaking viewing figures actually give us an insight into is “the changing complexion of the U.S. population, particularly the growth of immigrant and second-generation Hispanic and Asian populations with deeper cultural ties to the sport.” With the national census recently completed, we should soon have a much clearer picture of the continually evolving melting pot that is America. Broadcasters around the world are beaming, but may need to manage expectations; some 58% of U.K. TV audiences expect to watch the next World Cup in 3D.

Insights often come about from studying behaviour, even the simplest behaviours, because sometimes we make presumptions that turn out to be wholly inaccurate. Just as Goldman Sachs did by presuming England would be a semi-finalist and just as Zeitgeist did presuming that an octopus with nine brains couldn’t predict the outcome of a football match.

Louis Vuitton’s Brand Balancing Act

LV may have been around since 1854, but, as the saying goes, you’re only as good as your last picture. Just as many an actor has been condemned to Hollywood purgatory through making one poor choice, so it is with a brand. A brand’s equity is made or broken by its perception, i.e. what it’s done lately. Ogilvy’s own Louis Vuitton has been in the press a lot recently, for reasons both good and bad. Zeitgeist takes a look at Vuitton’s goings on, and what impact the machinations will have on it’s brand.

The last Friday of May heralded the reopening of London’s New Bond St. Louis Vuitton boutique, with the new moniker of ‘Maison’, presumably denoting it as a flagship store. Never one to miss a way to include Facebook, Vuitton recorded the event in a live stream over the social network, beaming around the world images of the oh-so tiring Alexa Chung as she hosted the broadcast. The brand has done this previously to great success for it’s Ready-to-wear collections from various shows, which inspire great community interaction. Concurrent with this was the launch of a brand presence on Foursquare, one of the first of any brand to have an account on the location-based social network. (Indeed, this democratisation of fashion could be an article in of itself; Ermenegildo Zegna are taking a leaf from Vuitton’s book with unprecedented access to what goes on in the runup to a runway show). Photos of designer Marc Jacobs, Gwyneth Paltrow et al. graced the front pages of several of the city’s dailies the next morning. Diagnosis: Very good

At the opening, in a separate story that appeared with very little fanfare on the Vogue website, a brief interview was conducted with Vuitton’s creative director Marc Jacobs, who said that when he began working on the brand, his initial thoughts might have taken it in a completely different direction, “When I arrived at Louis Vuitton 12 years ago, and I was figuring out how to create a new tier of Vuitton for a different customer, I thought it would be clever to hide that monogram, which was very stupid of me. That logo is part of what makes Vuitton so desirable. It allows people to become members of an aspirational club.” Zeitgeist has never heard Jacobs utter such an admission prior to this; it is surely an incredibly controversial thought. The problem is that the designer may have been quite right to have thought of removing the logo. Without it, they are almost certainly missing out on what he refers to as a “new tier”; the customer that loves the quality and craftmanship of Vuitton but does not need the validation of having “LV” emblazoned on every product, so instead chooses to shop at Bottega Veneta or somewhere similar. For how long can a brand remain aspirational when it begins to be seen everywhere, including in all the wrong types of places? Zeitgeist recently spotted two pieces of genuine Vuitton luggage sitting in the window of a McDonald’s. Diagnosis: Not good

Elsewhere in Vuitton’s world, the Advertising Standards Authority recently upheld three complaints on a series of advertisements that Ogilvy Paris had concocted, which had received positive press from the FT at its inception, and to which Zeitgeist has referred to previously. The ads, though beautifully photographed in an homage to that brilliant artist Vermeer, were withdrawn after complaints that the print ads gave the impression that the products were completely handmade from start to finish, and that at no point was machinery involved in the manufacturing process. In reality, this is not the case. Craftmanship by hand is indeed a significant part of the process, but the ASA deemed this insufficient. It is also unlikely that such young, beautiful people as depicted in the advertisements work in such immaculate clothing with only chiaroscuro lighting to work by, but there did not seem to be any complaints regarding these artistic licenses. Perhaps this is because such things should be taken with a pinch of salt, instead of at face value. Diagnosis: Not good

Louis Vuitton continues to contest in court in efforts to cut down on the re-selling of goods or the distribution of counterfeit products. The last victory came recently against eBay when the company was fined €200k in damages and €30k in legal costs made payable to Louis Vuitton. TelecomPaper reported “The court described as ‘parasitic’ eBay’s purchase of keywords such as ‘Wuittton’, ‘Viton’ and ‘Vitton’ so that online shoppers searching under these misspellings would be directed to links promoting eBay.” More recently, however, holding company LVMH lost it’s battle with Google over charges “that Google’s practice of selling keywords in advertising searches to the highest bidder damaged trademark law”, according to the BBC. Diagnosis: A tie

Lastly, having already made clear it’s association with a new part of the Journeys campaign – previously featuring such luminaries as Sean Connery, Keith Richards and Catherine Deneuve – that had Pelé, Zidane and Maradonna huddled around a table football game together, this week the company cemented the connection. Vogue recently reported that the World Cup would have an official home in a piece of luggage designed specifically for it by Vuitton. The luggage was revealed in Paris to great fanfare, by that [super]model of restraint, Naomi Campbell. Diagnosis: Very good

It’s been a period of mixed blessings for Louis Vuitton, some of which were completely out of their hands. It’s had some big wins with the new London store opening, as well as the excellent association it has created with the impending World Cup. Long-term, it will be fascinating to see if this is the beginning of a brand embracing to an increasing extent the entertainments and pastimes of the masses (prior to the World Cup, the only sport Vuitton had been involved in was the America’s Cup sailing race, crewed and supported by nought but multi-multi-millionaires), and how they will maintain an aspirational slant if they do so (presumably by continuing to charge £300+ for a shirt). Exciting times are ahead, no doubt…

The science of integrating eyeballs

As the media industry trade mag Variety reports this week, the annual “upfronts” for TV are in full swing. This is when TV executives put on an attractive show for the advertisers, in order to convince them that their shows are worthy of being invested in with some big brand names for those thirty-second ad breaks. What last year was a moribund affair – as the major US networks struggled with the economic downturn – has improved notably this year due to complex negotiations and a somewhat more bullish ad market. Variety notes that the iPad and its myrmidons will be a significant part of the push, as well as mid-end restaurants trying to lure back the consumers they lost to cheaper rivals and even a resurgence in the automotive category.

According to a Nielsen study undertaken at the end of last year, the average American watches about 140 hours of TV every month, “including more than seven hours via DVR [i.e. TiVo / Sky+] and another 3.5 hours via the Internet”. The TelecomPaper reported this morning that weekly internet usage has overtaken TV watching in Canada.

Digital expenditure remains a small piece of the pie for the TV industry. President of sales for Fox Broadcasting Jon Nesvig bemoans the lack of a “common measurement system” for both on and offline; digital spend for the moment remains a brand-building exercise rather than accruing a return on investment. The “old-fashioned 30-second spots still pay most of the rent”. Product placement also plays a large part in the US, while the UK continues to grapple with the implications of it. One interesting recent development is that of contextual advertising. As Variety explains, this means “… having spots run adjacent to relevant subject matter in programming. For example… a scene with a car crash in ‘The Bourne Identity’ transitions into a spot for the On-Star automobile security system.” Full measurement and integration of all platforms is clearly a way off yet, however when it happens expect digital ad spend to rocket up.