Industry Insights

Sharing Economy: the ‘use, don’t own’ notion

Traditionally, the consumer’s behaviour has been immersed in a linear economy in which products are made, used and disposed of. Nevertheless, since 2014 a new trend has been taking place: the sharing or circular economy.

Under this new system, the consumption of products and services is moving from owning to sharing and renting. This encourages reusing and recycling in order to give a better use of goods and skills, which not only provides an innovative experience but also an economical benefit.

The ‘use, don’t own’ notion

According to Vincent Rousselet, director of consultancy Vincent Rousselet & Associates, there are 4 factors that have been essential in the spring and development of this peer to peer consumption model:

  • The recent credit crunch has made people reconsider their consumption patterns.
  • The increased development of the internet and the global connectivity
  • The tracking of user online behaviour provides valuable, predictive insights (big data)
  • The rise in the user’s consciousness of the consequences of consumerism, regarding specifically the global climate change.

So far, the technological platforms are the foundation and main channels that let this collaborative system evolve around the world. The Nesta report ‘Making Sense of the UK Collaborative Economy’, states that in 2014 “25 per cent of UK adults used internet technologies to share assets/resources over the last year.”

Some of the most outstanding examples are Airbnb and Uber. The first one encourages individuals to share their homes for short periods of time while the latter transforms private cars into resources for public transportation. Most of these companies are for-profit services that only keep a small fraction of the fees charged.

According to the Journalist’s Resource, Airbnb has over 10 million guest-stays on their records and 500.000 properties listed while Uber is doubling its profits every 6 months.

Even though this economic model has worldwide detractors that argue it replaces secure jobs through a trend of part-time, low-paid work, there are already around 860 start-ups in this sector. Accounting for 1 in 10 of these, the UK is the European capital of the sharing economy.

Stand out start-ups

Since these peer-to-peer services are an alternative towards the fulfillment of the different consumption patterns, there are several start-ups that are worth noting due to its creativity or valuable contribution to a more sustainable socio-economic model:

1. Feeding Forward (United States)

Sharing economyThis platform allows any kind of business can request a pick up of their food surplus. Considered to be a donation, it is afterwards delivered to nearby shelters in need. The objective is to allow companies to receive a tax reduction and reduce disposal costs while ending hunger in the world.

 2. Fon (Spain)

Sharing economyThrough millions of hotspots around the world, it enables users to share their WiFi network in exchange of getting this service for free in any of the 16 countries that are part of their network. It started with residential wireless connection only and then moved forward to small, medium and large venues.

 3. Misterbnb (United States)

Screen Shot 2016-01-14 at 03.03.11With 30.000 hosts in 130 countries, this is the largest gay travel accommodation in the world. The objective is to develop a sense of belonging by helping this community to travel safely while learning local insider tips.

 4. Hassle (United Kingdom)

sharing economyRegardless of the venue (room, flat or even a mansion) this company is able to provide a local professional cleaner in a 60-second online request. No matter if it is a one-off, weekly or a fortnightly clean, the cost per hour will always be the same and it can be refunded if the service is not good enough.

5. Pley (United States)

sharing economySubscription platform that allows families to rent toys for a short period of time (as kids grow). Through a 70% cost reduction and the elimination of clutter, the aim is to raise a playful, creative generation aware of the principles of sharing and waste reduction.

 6. Kiwi (Colombia)

sharing economyAs long as it is legal, this company challenges users to ask them for any kind of service or product. Food, alcohol, electronics, reservations, plane tickets, health care services, clowns and even pranks can be requested. Through a network of national and international providers, Kiwi is capable of providing a 24/7 service in Bogota and Mexico City.

The Sharing Economy has had a smashing beginning. Even though it seems to be a promising land entailing a social, cultural, economic and environmental transformation, it is paramount to create global and local legal frameworks able to regulate its proper implementation.

If this system manages to integrate and assemble the multiple society sectors under a common good premise, in the future we might discover that we are currently in a historic transitional period towards a new worldwide economic model.

Written by Estefanía Jurado Rodríguez

Industry Insights, Market Info, Marketing

In recent years many articles are popping up praising concepts like piggybacking, experiential, viral, buzz marketing etc.
Are these concepts THE solution to get your brand and message across to your target audience no matter what?

Buzz Marketing being “A big Fad!”
In the blog of Joseph Putnam “How to Apply Buzz Marketing Principles for Effective Internet Marketing” the success of Buzz marketing seems to be guaranteed.
“The difference is that the goal of buzz marketing is to get people talking about your brand – not just to make people aware that your brand exists.(…) Most people think it’s something that happens randomly, but in the book Buzzmarketing, author Mark Hughes talks about how buzz can be generated by following a few basic principles. Businesses that follow these principles are much more successful at getting people and news outlets talking about their brand than businesses that only use traditional marketing tactics.”

“A big fad” called Piggybagging
As well as in the blog of Laura Davies “Can piggybagging on viral activity help with your marketing strategy?” the author talks about using Piggybagging as a successful concept to reach the right audience “One thing is clear, the impact of viral campaigns can be huge, but in a few months, weeks or even days they can be easily be forgotten. For brands, “piggybacking” on these trends and campaigns quickly is highly beneficial (…)”

Experiential Marketing “The next pig fad!”
Shareen Pathak who is the author of the blog post “Just What Is Experiential Marketing, and How Can It Be Measured?” mentioned that “Jeff Benjamin, chief creative officer at JWT North America, said experiential is what brands do in the world that get people “participating.” He called it an evolution of what interactive advertising was a few years ago — anything that pulls people into the brand, digitally or physically. “It just has the gas pedal on it now because of social media and technology.”

If one follows up all three blog posts mentioned before and carefully reads them, the question stated at the beginning becomes obsolete. Plus questions like: Are these “new” concepts the Holy Grail of marketing? Can these vessels transport any type of message to any person on the planet? Do they only have to be new and exciting to be appealing? where the answers is no becomes obsolete as well.
This is all due to the progression of marketing itself. As I was putting this blog post together I researched the web for FAD look alike blog posts based on marketing concepts. So far I could not find one single article praising one concepts or idea as the single perfect solution.
It seems that marketing and its experts grew up to the extend where marketing is not a side function of sales anymore but rather a mature, smart and educated industry.
Every article or blog found, mentioned that in the end it’s much more important to identify key trends within the target audience, use the right tone of voice across channels in a coherent way and stay true to what research and data can provide us with.
That said, concepts like piggybacking, experiential, viral, buzz marketing etc. have proven itself to be successful approaches and concepts but only within an appropriate context and with a meaningful and coherent message.
Following marketing 101 rules, these concepts can stay valid overtime but only if the implementation and execution is spot on and inline with a proper strategy.

For instance, Pepsi just proved that experiential marketing can work over time with the same idea as long as it is coherent, hence following the same or an adapted strategy and has meaning to its audience:

Year 2013:


Youtube Facts – Views: 45,216,778, Likes: 155,103

Year 2014:


Youtube Facts – Views: 19,785,451, Likes: 63,740

Although the second #TestDrive was less successful ADWEEK put it on their Ad of the Day page showing that this idea once implemented correctly can produce repeated results: http://www.adweek.com/news/advertising-branding/ad-day-jeff-gordon-pepsimax-get-revenge-writer-who-said-test-drive-was-fake-155992

One final word: Thanks marketing for growing up as a sector and especially understanding that ideas and concepts are only one part of you. Plus thanks concepts and technology for making marketing way more creative and diverse than ever before. There are no fads within concepts or ideas but there are people using the marketing tools wrong or in the wrong context – Nevertheless these people seem to become obsolete in a growing and more mature marketing world.


Written and edited by Benjamin Glahe

 

Marketing, Uncategorized

Interactive Marketing has been around for quite sometime now, however with the cost of technology coming down and the freedom to do some amazing things through innovative and interesting means, a lot of brands want to do it more. Below are 6 Interactive ways through which Brands are going to talk to you.

Interactive Billboards

There is a huge surge in the number of interactive billboards that we are going to see. Below is an example of British Airways by Ogilvy

Interactive Floors & Tables

The use of physical space is going to be another area that will get a lot of attention. TheFunTheory.com wanted more people to take the stairs and this is what they did:

Interactive Windows

More and more stores are going to have interactive windows to hook the customer as they pass by. Below is a beautiful execution for Carte Noire – Intensity by AllOfUs which we had a chance to see during our agency week.

Carte Noire – Intensity from AllofUs™ on Vimeo.

Interactive Bus Shelters

When you are waiting for the bus, all people do is keep to their phones or just stare blankly at the road in hope that the bus arrives soon, which is why interactive bus stop ads are so effective.  Pepsi Max had a fun way to entertain people in a recent campaign:

Interactive Mirrors

Interactive Mirrors would greatly aid in the retail space. By mixing augmented reality the possibilities are endless. Puma used interactive mirrors in one of their stores a couple of years back:

Be sure to keep your eyes peeled to witness some of these magical marketing.