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Coca-Cola is continuing to rejigger the agencies working on the Sprite brand, the latest move being tapping Johannes Leonardo to lead Sprite creative globally.
The previous global lead was Publicis Groupe-backed Bartle Bogle Hegarty, which recently lost the North American piece of the business to Leo Burnett. BBH won the business three years ago following a shootout against Wieden & Kennedy; at the time Coca-Cola had just decided to reinvest in the brand, which had languished for years with little advertising.
BBH in Shanghai continues to work on Sprite and it may also handle project work for the brand.
A Coca-Cola spokeswoman confirmed that it tapped Johannes Leonardo, which is backed by WPP, while BBH declined to comment.
It’s possible Johannes Leonardo’s first work for the brand won’t debut until 2013, given that a campaign from BBH, “Uncontainable Game,” isn’t slated to conclude until early next year. The campaign, which highlights basketball, is running in 27 countries, making it the largest global campaign Sprite has ever executed.
As part of that campaign, Kobe Bryant, Lebron James and a slate of NBA players hailing from outside the U.S. are serving as coaches of “Team Intense” and “Team Sudden.” Players can submit videos of their “sudden” or “intense” moves online to be judged by a panel of experts. Ultimately, two teams of 12 amateur players each will be selected to compete in the “Uncontainable Game” over NBA All-Star weekend in 2013. In February, Sprite told Ad Age it planned to carry the program into at least 2014.
“We have seen a new trajectory for Sprite in the past couple of years,” Michael Mathews, Coca-Cola’s VP-noncola sparkling beverages, said at the time. “And we think we can expect more out of the brand. Our brand-health scores are up.”
Las year, Sprite grew share and volume by 0.1% in the U.S., according to Beverage Digest. The brand, however, is larger in China than in the U.S. It is mainland China’s No. 1 soft drink, though it ranks only sixth in the U.S. Globally, Sprite reported 4% growth in the first quarter.
Spending on the brand has declined markedly from the mid-2000s when it spent nearly $30 million on annual measured media, according to Ad Age’s Leading National Advertisers report. Sprite spent just $9 million on measured media in the U.S. last year.
Contributing: Rupal Parekh
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Henry Ford is often credited with saying that if he had asked consumers what they wanted, they would have asked for a faster horse. Whether he actually said that or not, it’s a great reminder that successful businesses look to the future. It’s ironic that GM, one of Ford Motor Company’s biggest competitors, demonstrated its eye on the past by pulling approximately $10 million worth of Facebook ad spend. The timing of this move is suspect, given its proximity to Facebook’s IPO and GM’s history of working over its publishers.
This move has brought GM more attention than it’s had in a while, but rather than raising doubts as to the value of Facebook, the move really brings into focus GM’s inability to amplify brand and consumer advocacy of its products on the world’s largest social networking platform.
With this move, one of the world’s largest advertisers is trying to say that Facebook advertising doesn’t work. The truth is that Facebook isn’t broken; GM is. And the automaker’s movement of ad dollars to other media channels offers a short-term solution to a long-term business problem.
Putting its $10 million into more traditional online advertising channels such as search and display ads will probably pay short-term dividends for GM, which will only obscure the automaker’s failure to recognize the best way to utilize Facebook. Rather than focus on selling cars on Facebook, the brand should have looked at how to connect with its best advocates to influence purchase behavior across the social graph. Facebook’s true value lies in the power to build loyal fans and then message them as well as their friends to build consumer relationships, with the ultimate goal of rebuilding the brand as well as selling cars. GM’s strategy clearly missed that step.
GM will reportedly continue to invest nearly $30 million to maintain a Facebook presence and develop applications, which may turn some of the brand’s 3.9 million fans into brand advocates. That’s an expensive investment, though, for such a small and disengaged fan base. GM’s chief competitor, Ford, has 10.2 million fans. If Ford consistently messages and engages with these fans and their friends through paid advertising that demonstrates the benefit of a Ford, it will continue to build brand advocates, of a kind that no amount of GM advertising can sway. When it comes time for a new car, rather than research new brands, those brand loyalists will go straight to their Ford dealership; GM won’t even be in their consideration set.
If GM were to take a more progressive approach, it would move social to the very beginning of its sales and product planning strategy, investing in using the platform for consumer research, using paid ads to engage and acquire more fans, and then engaging with those fans and their friends to turn them into genuine advocates. While the automaker complained of its inability to attribute success, we’ve seen consistent data showing that Facebook is best at using online behavior to drive offline behavior, and that Facebook fans influence others and minimize comparison price shoppers, as seen commonly through search and other comparison shopping sites. According to Forrester Research’s “The Facebook Factor” report, fans are also very likely to recommend a brand to friends. By leveraging Facebook advertising, brands can actually connect with fans over time to build loyalty and long-term sales — not only with the single buyer, but also with families of consumers and their friends.
GM’s consumer loyalty problems certainly didn’t begin with Facebook. GM ranked 12th out of 13 automotive brands in Consumer Reports’ latest automotive scorecard, and recalled 50,000 vehicles as recently as April. If the brand was losing ground to competitors on social, it was probably wise to look for a new battleground. It may be smart to abandon Facebook altogether for now, and reinvest its money in making a car that actually appeals to consumers.
Rather than ask what Facebook has done to help GM, GM should have looked at what it was doing to engage its fans. Diverting money into other online channels may sell cars in the short term, but will fail in the longer term, as consumers spend more and more of their time on social platforms like Facebook. Don’t forget that brands used to raise their eyebrows at the idea of search advertising, too. Brands that are investing heavily in Facebook now — such as Starbucks, Coke, Kraft, Zynga and Groupon — will reap long-term rewards.
Facebook’s value comes from its ability to help brands build long-term loyalty, and $10 million is a tiny fraction of GM’s $3 billion annual ad budget. If GM isn’t investing in building brand loyalists, then the automaker and its dealers will miss the value of Facebook, and will ultimately lose resonance with consumers.
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Yesterday, the U.S. news media sent a powerful message to the world — General Motors is pulling its entire Facebook ad spend and going to tune out more than 900 million users of the network to focus on the fan base that they can message for free. The headline of the day was that Facebook is not as effective an advertising vehicle to drive messaging as it had originally been deemed by GM.
Considering the size of the audience and the frequency in which they engage, it seems hard to believe GM is going to prematurely and permanently check out from the social network’s paid marketing. But rather than amaze you with my ability to create charts and infographics worthy of your newsfeed, I’ve elected to focus on the factors that would lead to a marketer’s decision to discontinue buying Facebook ads — and the things that are critical to understand if they want to stay and get it right.
Facebook marketing for a big brand is hard. It’s even harder in a category like auto, when success and sales come from a well-connected network of dealers who have perfected the art of selling and luring generations of buyers to take test drives. Legacy practices, partners’ CRM and brand tracking, backed by a billion-dollar ad budget, tend to create an organization that can prove results based on what it wants to. But the impact and variability of creativity is hard to measure and almost impossible to attribute to any single channel in a sure-fire manner. The real questions we should be asking ourselves, before we blame Facebook for GM’s marketing effectiveness, are were they doing it right and were they measuring it right?
Auto will be a big spending category for Facebook if marketers can get it right. The silos with the walls of auto are strong. However, I have confidence that a marketer can break through and turn the opportunity into a powerful company-wide marketing advantage. Here are the areas in which Facebook should see big advertising spend from auto marketers who get it right.
Brand Marketing: A casting call for great content Companies like General Motors spend billions each decade on brand marketing. TV, sponsorships, street teams, radio, digital and outdoor are all part of the “marketing mix.” The wrong content or idea, across any of these media, renders them ineffective (and can amplify failure). However, the right concept, properly executed on Facebook, sees ad dollars amplify success. The too often cited Old Spice campaign is an example of how Facebook and social media can amplify marketing value, if the right high-quality content is present. Great content spreads faster with ad spend — no infographic required.
The real money for Facebook is at the dealer level. This year, we launched a powerful new technology to help corporate marketers activate their dealers or franchisees at the local level. Why? Successful social marketing, for categories like auto, is local because sales are local. How the dealer and the local salesperson promote themselves and interact with their local community will become a competitive advantage to the companies who get it right. Local dealers and dealer groups alike should be spending money on locally targeted advertising to drive local relationships, events and test drives. This should be a massive part of the local marketing mix and represent significant global spending.
Loyalty and social CRM are not #FREE When a brand publishes a story to its fans and followers on Facebook, it reaches a subset of that audience. The size of the subset depends on the level of engagement that the community experiences. To reach everyone with an optimal frequency, you need to spend ad dollars to amplify your message and leverage the social graph. You would never run an email CRM campaign to reach only a subset of your database, so why would you do that on social?
Measurement is key. Ok, so now you know what to do, how are we going to measure these tactics and hold both Facebook and your agencies accountable, you ask?
Brand Marketing: It’s not about clicks. It’s about developing measures (which we have) that understand and track the reach, frequency and impact of the message across Facebook and social media. Paid media needs to drive this as sharing spreads the content and increases the marketing ROI, provided it is good. If the content sucks, don’t expect anyone to share it and the amplification opportunity is lost. Even worse, if you are not engaging your fans, they will also be lost.
Dealer: Once you give the dealers technology and content, understanding metrics — ranging from test drive requests to event attendance — become easier. This can all be tracked and contained in a central dashboard.
Loyalty: Facebook will only be one part of a loyalty platform. Product quality, service and dealer experience, among many other factors, all play into effectiveness. Survey- based research can help brands like GM understand how much more fans spend on their favorite brands than do non-fans.
Remember, even though Facebook’s IPO is looming, it’s very early in the game. The stock will go up and down. Facebook will adapt and shift based on what is working and what isn’t. It will launch new products, some of which will work, others that won’t. At the end of the day, it remains important for every CMO to understand Facebook and to think and act holistically, by having an effective paid and earned media strategy for the web platform that hosts 900-plus million people. In the words from our past: Don’t blame the channel, blame the message.
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Even though Siri was born in California, a state where more than one-third of the population is Hispanic or Latino, Apple’s voice-activated personal assistant doesn’t speak Spanish.
With Siri its major selling point, the iPhone 4S has flown off the shelves, despite running the risk of alienating the U.S. ethnic group most gaga for smartphones: Hispanics, who are more likely than non-Hispanic white adults to own them.

Zooey Deschanel and Siri speak English to each other in an ad.
Even so, some think Apple stumbled in not including a Spanish-language Siri when it launched in October.
“I have several friends who purchased iPhones for family members and then returned them because Siri doesn’t speak Spanish,” said one Hispanic media exec. “At first they thought the phone was broken. Then they said, ‘Siri es una estupida.’ “
And though Siri has starred in Apple’s ads for iPhones in the U.S., she can’t be part of its sell in China because she also doesn’t speak Mandarin — the No. 1 language by volume of speakers.
That doesn’t seem to be hurting iPhone’s popularity there, though. Apple grossed more than $10 billion in Asia-Pacific in the first quarter, second only to the Americas $13 billion. Apple earned $8.8 billion in Europe in the first quarter.
Apple did not respond to a request for comment.
In addition to English, Siri speaks German, Japanese, French and even celebrity. (“Siri, remind me to put the gazpacho on ice.”) Apple has said that additional languages, including Chinese, Korean, Italian and Spanish, are on the way this year.
“Apple has a roadmap and has to get all the bugs out,” said Steven Wolfe Pereira, exec VP at MediaVest and managing director of its multicultural unit, MV42.
Apple has long used software like Siri to make its devices more appealing. For example, iTunes drove rabid demand for iPods. Similarly, iTunes was available in the U.S. first, then Europe and then elsewhere worldwide.
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