Warc’s Toolkit 2016 Summary

TOOLKIT 2016
EXECUTIVE SUMMARY
In association with

2 Warc: Toolkit 2016 – Executive summary © Copyright Warc 2016. All rights reserved.
Six questions for marketers in 2016
WHAT ‘MOMENTS’ ARE YOU
TARGETING?
Brands are using data to build
strategies and teams around
potential consumption moments.
WHAT SKILLS DO YOU NEED
IN-HOUSE TO BLEND DATA
WITH CREATIVITY?
Data-driven creative
development poses a structural
challenge to marketing
departments.
DO YOU NEED A
CONNECTION STRATEGY?
Developments in analytics allow
creative and media plans to be
rooted in sophisticated models
of consumer behaviour.
IS YOUR DIGITAL
INVESTMENT BEING
WASTED?
Issues such as viewability,
ad fraud and ad blocking are
challenging the way brands
approach digital.
ARE YOU USING VIDEO FOR
MORE THAN SHORT-TERM
CAMPAIGNS?
An explosion of formats and
platforms allows brands to take
a more strategic approach to
video.
DO YOU NEED A STRATEGY
FOR GEN Z?
Today’s under-18s influence
purchase decisions in a growing
range of product categories.
1 2
54
3
6
GET THE
FULL
REPORT
Read all six
chapters at
warc.com/
toolkit2016

Executive summary
Warc’s Toolkit 2016 report looks
at six marketing challenges
for the year ahead. The report,
produced in association with
Deloitte Digital, distils the best
of Warc’s content over the past
year – the latest ideas, research,
data and examples. The result is
a guide to the latest thinking in
each area, and the implications
for marketers.
The full report is available to
Warc subscribers. This summary
pulls out the major takeaways
from each chapter.
But it is also worth noting
some overarching themes. It is
no surprise to find digital and
data underpinning many of the
ideas in the report – both have
been major drivers of change in
marketing for several years. And
in both areas change is rapid.
1. Digital is at a crossroads
Digital adspend continues to
rise, but there are clouds on the
horizon. 2015 saw issues such
as viewability, ad fraud and
ad blocking come to the fore,
raising serious questions about
the online ad ecosystem and
the value brands are realising
from it. At the same time, brands
have more options for creation of
content, particularly video, than
ever before. Many commentators
predict an even greater emphasis
on content in digital strategies.
2. The data revolution rolls on
Several chapters in the report
deal with the implications of
data, particularly data from
digital platforms, for marketing
strategy, creative work and ROI
analysis. The upshot is that data-
driven thinking is creeping into
all aspects of marketing.
Interestingly, several of the
chapters in this report touch on
the interplay of a data-driven
approach with the need for
creative thinking. Marketing
success, it appears, increasingly
lies in a combination of digital
expertise, data analysis and
creative excellence – the
challenge is delivering on all
three.
STRATEGY: FINDING THE
RIGHT MOMENT
There is growing interest in ‘micro-
moments’ – brief opportunities to
put the right message in front of
the right consumer. This reflects
two developments: the ability to
identify moments through various
forms of data analysis, including
path-to-purchase data and
monitoring of social media; and
the ability to target consumers
in those moments through
technology – for example through
programmatic buying or through
location-based messaging.
Major names such as Johnson
& Johnson, Pernod Ricard
and Heineken now talk about
‘moments’, and are experimenting
with different approaches. A good
example comes from Johnson &
Johnson, which used social media
to identify an opportunity to
target mothers of small children
awoken in the middle of the night.
It responded with a campaign
that ran only on tablets, the
favoured device for browsing in
the small hours.
Key to achieving this is having
the right data – not just to spot the
opportunity, but also to serve ads
to consumers at the right time.
DATA: THE CREATIVE LINK
The relationship between
data and creativity is also
developing fast. The two may
not always have been natural
“It’s not just the medium
on which we watch video
that’s changed, but also
the platforms on which
we watch it. Whereas
YouTube used to be almost
the only game in town, it
now has serious rivals,
notably Facebook”
Ben Phillips, MediaCom

Executive summary
bedfellows, but are now being
fused effectively in a number of
different ways. For example, an
Australian case study, from cough
remedy Bonnington’s Irish Moss,
demonstrates how powerful a
creative platform built around a
real-time data feed (in this case a
‘flu tracker’) can be.
However, one challenge for
clients is the building of both
skillsets within a marketing
function, especially given the
growing array of marketing tech.
As a senior executive from Frito-
Lay points out, marketers need
to be able to understand the tech
if they are to distribute content
effectively. That means data and
creativity have to sit together.
ROI: PUTTING A VALUE ON
CONNECTIONS
The availability of more data is
opening up new opportunities for
marketing attribution analysis.
For example, some brands are
generating fast-turnaround
analysis on user-level data, to
complement their bigger-picture
analysis of the role of different
media.
The result, for brands
sophisticated in this area, is
analysis that can be used to
optimise campaigns as they’re
running.
That possibility is helping
to drive the rise of connection
planning, which roots media
and creative strategies in data
on consumer purchase paths
and media habits. To achieve
this, brands should involve
data scientists and researchers
as early in the campaign
development process as possible.
The report includes examples
of studies from UK telcos
Vodafone and O2. But this is
not just an approach for brands
in data-rich sectors such as
telecoms. Mondelez International
and Hershey in the US have both
invested in forms of attribution
analysis as they seek to
understand the web of influences
around their target groups.
MEDIA: THE DIGITAL
BACKLASH
As digital adspend grows, issues
such as viewability and ad fraud
are becoming more pressing.
A growing number of clients
are asking whether their online
advertising is actually being
viewed by human beings. And
trade bodies around the world
are looking for ways to bring
agreed standards to the digital
sector. The report looks at work
by Kellogg to improve viewability
rates, and the improved sales it
has seen as a result.
These concerns are being
compounded by the baffling
variety of intermediaries
emerging in the ad tech space.
One commentator has argued
that inconsistency between
Image caption to go here
Frito-Lay is looking for smarter data to inform its content strategy
89%of respondents to a World Federation
of Advertisers survey said they
planned toincrease analytics and
insights budgets

Executive summary
ad tech vendors is creating
an atmosphere of “fear and
mistrust” among marketers.
These client-side concerns
coincide with the rise of ad
blocking technology – arguably
a consumer response to poor
experience of advertising online.
Ad blocking will remain a
significant industry issue in 2016,
particularly for publishers whose
revenues it threatens. Many
commentators believe brands
will shift budget into online
content, which is harder to block,
and the report looks at a ‘native
advertising’ initiative by Xerox.
VIDEO: BEYOND A
CAMPAIGN APPROACH
The growing interest in content
will drive greater investment in
video. 2015 was a significant year
for online video, as several social
platforms raised their game as
distributors of video, and offered
fresh advertising options for
advertisers.
Advertisers interested in video
should study the strategies of
brands such as adidas, which
has used in-feed videos targeting
niche audiences, and Clean &
Clear, which has worked with
Google’s BrandLabs on a three-
part video strategy that balances
‘hero’ campaign content with
‘pull’ videos such as product
demonstrations.
CONSUMERS: ENGAGING
GENERATION ‘SWIPE’
Online video is also key to
engaging Generation Z, or Gen
Z – one study has even found
that teenagers prefer YouTube to
TV. Their high usage of tablets
and mobiles means that content
developed for those platforms
is important. Advertisers such
as Mondelez International have
experimented with online video
content featuring vloggers and
online celebrities, who wield
significant influence with this
demographic.
Gen Z, generally classified as
those under-18, has a surprisingly
high purchase power, and one
notable trend is how quickly,
versus their predecessors, they
graduate from children’s products
to adult categories such as
fashion and tech. This makes
Gen Z of interest to a broad
range of marketers.
In most markets, regulatory
challenges exist to marketing to
under-18s. But one of the biggest
challenges is the attitudes of
this cohort: an insistence on
authenticity means brands may
find they need to earn the right to
communicate with them.
The chapters in this report
highlight the pace of change, as
marketing departments realise
the full implications of digital and
data. But it is also clear from this
report that creative content, in all
the forms it now takes, remains a
key driver of success.Clean & Clear brand has developed a three-part video strategy
35%of consumers aged 18-24 in the UK
use an ad blocker, according to the
IAB UK

Viewpoint: The creative revival
We are once again delighted
to be collaborating with Warc
to examine the challenges
marketers will face in the year
ahead. We have used Deloitte’s
own research and wealth of
experience to provide our
perspective on how to approach
these effectively.
Last year, the Toolkit report
focused on the need for agility
in marketing in order to meet the
diverse needs of consumers and
seamlessly communicate across
channels. This theme continues
to be relevant, but with a renewed
focus on creative and content.
Technology, data and analytics
have dominated the marketing
conversation in recent years.
While these remain core threads
in this year’s report, there is an
increased focus on content in a
multitude of formats to penetrate
the ever-decreasing attention
spans of connected consumers.
We live in a distracted society.
In the UK, consumers collectively
check their smartphones over a
billion times a day, according to
Deloitte’s 2015 Mobile Consumer
Survey. Consumers are taking
shortcuts to absorb information
and gravitating towards rich
media, most notably video. We
touch on the use of innovations
like vertical video to capture
consumers’ dwindling attention,
and the importance of exploring
virtual video in order to stay
ahead of the curve.
And we look at the importance
of capturing the attention of the
increasingly digital-literate and
ethically conscious Generation Z,
while remaining mindful of the
need to protect this vulnerable
demographic.
In this content-focused
environment, it is a challenge
to create cut-through and
engagement with customers.
Moment marketing, the ability to
deliver relevant and seemingly
spontaneous interactions to the
customer, is a key trend. We look
at the changes organisations can
make to structure teams around
consumption moments instead of
products, to capture consumers’
attention at the right time, and
win in moment.
This need for richer content
is being driven by broader
trends. The rise in ad blocking
technologies, which promise to
improve the user experience,
may necessitate a more creative
approach to online advertising.
Rather than interrupting the
user experience, ads must feel
frictionless and relevant to the
consumer in a given time and
place; yet another reason to focus
on enriching content.
To stay ahead, marketers will
need to pay attention to both
‘art’ and ‘science’ – looking
upon data and content as a
symbiotic relationship. Data and
technology will continue to grow
in prominence; for example, we
touch on the light that digital
marketing attribution can shed
on the customer experience,
providing the context to generate
content opportunities with utility
and meaning.
But to work effectively,
marketing can no longer be
confined to the marketing
department; support and
collaboration will be needed from
the Chief Information Officer and
other board members. We look at
the emergence of the role of the
Chief Marketing Technologist in
bridging this gap.
We look forward to hearing
your views as you tackle these
issues in the year ahead.
NICK TURNER
Partner, Digital
Marketing,
Deloitte Digital
© Copyright Deloitte MCS limited 2015

CHAPTER
SUMMARIES
In association with

1 2 3
Moment marketing
BRANDS ARE LOOKING FOR
MICRO-MOMENTS
PATH-TO-PURCHASE
ANALYSIS CAN HELP
IDENTIFY MOMENTS
BUY BUTTONS CAN CREATE
SHORTCUTS TO PURCHASE
Many brands, including big
names such as Johnson &
Johnson, are seeking to identify
specific ‘micro-moments’ –
brief opportunities to put the
right message in front of the
right consumer. The interest
in moments is driven by a
number of factors, including
more sophisticated consumer
behaviour data and targeting
opportunities. If brands can
identify micro-moments,
programmatic buying and
location-based targeting offer
opportunities to serve online
ads so that consumers see them
at that moment.
Advertisers such as Heineken
and Pernod Ricard have used
path-to-purchase analysis
to identify common triggers
for a purchase decision – for
example, in Heineken’s case,
shopping for meals versus
shopping for parties. Identifying
common purchase moments can
help brands prioritise marketing
investment.
Mondelez International
is an example of a brand
experimenting with technology
that shortcuts the path to
purchase and takes consumers
direct from the moment of
interest to an opportunity to
buy. It is looking to build a
billion-dollar e-commerce
business by 2020. The roll-
out of ‘buy buttons’ on social
media websites offers a good
opportunity to experiment with
such opportunities.
Read the full chapter
Allianz highlighted specific moments
in people’s lives via its advertising
Adidas responded to communal
moments during the 2014 World Cup

1 2 3
Data-driven creativity
DATA CAN FUEL BETTER
CREATIVE OUTPUT IN AT
LEAST FOUR WAYS
CLIENTS ARE RETHINKING
MARKETING STRUCTURES
CREATIVE INSPIRATION
CAN COME FROM OUTLIERS
IN DATA
The emerging partnership of
data analysis and creative
thinking is taking a number of
forms. Smart analysis of data is
bringing better insights around
which to build creative work,
including behaviour-based
segmentation. Programmatic
buying allows brand-building
creative to be tailored to
audiences at scale. Campaigns
or platforms are being built
around real-time data feeds.
And campaigns can be tested
in real life quickly, allowing
optimisation.
The need to combine data
and creativity is leading
some clients, such as
Frito-Lay, to rethink the skills
they need internally. There is
a growing call for ‘marketing
technologists’, but also an
emerging need for content
production and distribution
expertise. Several studies on
the future marketing department
combine variations of these
two skillsets.
One way to use data analysis
to spark creative thinking is
to examine ‘outliers’ in data,
rather than the main trend line.
The core trends will also be
visible to the competition, and
will often be where competitors
focus their attention. Studying
so-called ‘outliers’ can provoke
fresh ideas for creative teams
to play with.
Bonnington’s Irish Moss built a flu
tracker powered by real-time data
Mastercard turned social listening
into actionable information

1 2 3
New thinking in attribution
PROMISE TRUMPS
PRACTICE
THE RISE OF CONNECTIONS
PLANNING
UPSTREAM AND
DOWNSTREAM MODELLING
Although the emerging slate
of attribution tools holds rich
promise, there are many
hurdles to overcome – from
difficulties in identifying mobile
users, constant change and
the residual force of legacy
thinking. This will be an area of
experimentation and test-and-
learn for many brands.
Major advertisers, including
Mondelez International, are
moving toward a ‘connections
planning’ framework, which
draws from disparate sources
of data on consumer purchase
paths and media habits to
inform media and creative
strategies. This requires input
from researchers, media
planners, data experts and
creative teams from an early
stage in campaign development.
Big-picture modelling work
remains important, but is now
being complemented by user-
level analysis, or ‘test-and-learn’
projects on small samples – a
study by Vodafone in the UK has
balanced big-picture analysis
with user-level data. Such
‘downstream modelling’ can
produce quick results and is
useful for optimising work once
it has been launched.
O2 analysed brand-led and direct-
respons ads to assess their impact
Hershey analysed the influence of
different consumer touchpoints

The digital backlash
AD TECH IS DRIVING
‘FEAR AND MISTRUST’
AMONG MARKETERS
VIEWABILITY WILL REMAIN
A WORK IN PROGRESS
AD BLOCKING IS AT
AN ‘INFLECTION POINT’
As digital adspend grows,
client-side marketers are
becoming increasingly
concerned about issues such
as viewability and ad fraud.
These concerns are being
compounded, some argue,
by lack of consistency and
transparency in the highly
competitive ad tech space.
One survey found inconsistency
between vendors to be the
biggest headache for digital
marketers.
What constitutes a ‘viewable’
ad remains a hotly debated
topic, though it is clear that
many big brands want the
digital marketing industry
to push towards tougher
standards, and to extend those
standards to non-traditional
ad formats. Evidence from
Kellogg suggests that improved
viewability scores can lead to
better sales results. However,
there is an argument that
brands are becoming fixated on
viewability at the expense
of other important factors.
Use of ad blockers is growing
quickly, particularly among
mobile users and younger
users. This poses a threat to
the revenue streams of online
publishers. For brands, if use
of ad blockers continues to grow,
the issue will be whether they
can still reach target audiences
at scale. Evidence suggests
that providing more ‘relevant’
advertising to consumers will
not be enough to prevent their
use of ad blockers.
Xerox has adopted a ‘test-and-repeat’
approach to native advertising
1 2 3

The video revolution
THE VIDEO ECOSYSTEM
IS DIVERSIFYING
FROM HERO TO
HOUSEKEEPING
PREPARE FOR
PROGRAMMATIC
As the number of video
properties and formats rises,
brand strategies in this space
must evolve at similar speed.
YouTube’s dominance is
coming under pressure from
Facebook, while services like
Vine, Instagram, Periscope and
Snapchat all demand bespoke
solutions. Greater opportunities
for reaching niche audiences
also exist on platforms that
appeal to specific groups.
Marketers’ video efforts have
often appeared to be piecemeal,
and based on a campaign-by-
campaign logic. As consumers
watch increasing amounts of
content across a diverse range
of outlets, brands may benefit
from following YouTube’s
framework of ‘hero’, ‘hub’
and ‘housekeeping’ content –
essentially this means striking
a balance between ‘push’ and
‘pull’ content.
Programmatic video is a growth
area – and is rapidly extending
into addressable television
advertising, too. Leveraging this
technology in its current form is
undoubtedly challenging. But if
utilised correctly, it can help to
deliver the right message to the
right consumer at the right time.
Adidas tested ‘in-feed’ short-form
video ads optimised for mobile
Pepsi produced YouTube content for
men in a digital-first strategy
1 2 3

Generation ‘swipe’
GEN Z HAVE SIGNIFICANT
PURCHASING POWER
MOBILE IS CENTRAL TO THE
GEN Z MEDIA EXPERIENCE
ONLINE INFLUENCERS ARE A
KEY AUDIENCE
Sour Patch Kids developed a web
series starring celebrity vloggers
Taco Bell developed a taco ‘emoji’ as
part of its Gen Z-focused strategy
Generation Z (generally defined
as consumers aged under
18) are being given greater
financial independence than
previous cohorts of children, are
maturing into ‘grown-up’ product
categories more quickly, and are
influencing a greater share of
family purchases. Euromonitor
estimates that under-12s in
the US alone have a spending
power of US$43 billion.
This generation has been
named the ‘swipe generation’
with good reason: tablets (from
an early age) and smartphones
(in teenage years) are core to
their media consumption. Data
from the UK shows that tablets
are important in early years, but
mobile becomes key in teenage
years. Taco Bell’s decision to
use emojis to communicate with
young consumers is a reflection
of their media habits and
communication style.
The rise of ‘microcelebrities’,
on YouTube in particular, is a
key development for marketing
to this age group. These
‘vloggers’ can wield significant
influence on purchase decisions.
Mondelez International has
responded by developing a
series of webisodes starring
well-known faces from YouTube.
1 2 3

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About
Deloitte Digital
From strategy to delivery, Deloitte Digital combines cutting-edge creative
with trusted business and technology expertise to define and deliver
digital solutions. At Deloitte Digital, we are creating digital experiences
for the connected enterprise. From B2B, B2C, or B2E, we deliver strategy,
mobile, social, web, and digital content management solutions that will
help strengthen our clients’ brands and evolve their businesses.
www.DeloitteDigital.com
KEY CONTACTS
NICK TURNER
Partner
Nick is a partner in Deloitte Digital
where he has responsibility for
digital marketing and broader
marketing effectiveness services. Nick
specialises in large scale commercial
effectiveness and operational
efficiency initiatives encompassing
digital marketing transformation, operating model design,
customer experience definition and consumer loyalty.
Nick is a professional marketer by trade with considerable
marketing line management experience. He is a Fellow
and past Advisory Board member of the Chartered Institute
of Marketing, a Fellow at the Institute of Direct Marketing
and in 2011 Nick was voted the Management Consultancies
Association Marketing Consultant of the Year.
+44 7957 483 543
nickturner@deloitte.co.uk
Lucy Campion
Manager
Lucy is a Manager in Deloitte Digital,
focusing on Digital Marketing
transformation in B2C and B2B
organisations. She has worked across
multiple industries for some of the
world’s largest brand and marketing
functions, leading programmes to
deliver marketing organisational change. This has included
brand development, marketing technology implementation
and marketing data analysis. She has a diploma in
Marketing from the Chartered Institute of Marketing.
+44 7880 162 684
lucampion@deloitte.co.uk
Disclaimer: This report (the “Report”) has been prepared by Warc and Deloitte Digital, which is a part of Deloitte
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