THE

LAUNCH

EDITION

SEPTEMBER 2015

DIGEST

SERMO CONFERENCE

AGENCY HEADS GATHER IN BERLIN FIRST SERMO GLOBES ANNOUNCED

Berlin is full of creative energy and a spirit of generosity and openness. It provided the perfect backdrop for leaders from SERMO’s network of agencies around the world (23 in total) to come together to share ideas, challenges and experience at the network’s 5th annual conference.

Agencies set out market insights and trends, shared their best work and discussed how their businesses are

responding to ever changing consumer and client needs. The key trends having an impact now, on both agencies and clients, are set out below.

Guest speaker, Arun Sudhaman, partner and editor-in-chief at The Holmes Report set out his rules for capitalising on convergence in communications services - how PR agencies should adapt to increasing competition and deliver higher value services to clients (see feature on page 2).

Partners also brainstormed SERMO’s perspective on creativity in lifestyle communications (see page 4).

SERMO will launch a new Creative Collective service shortly, offering global brands access to creative input from luxury and lifestyle experts in 16 countries.

TRENDS TRANSFORMING

COMMUNICATIONS

SERMO partners identify the media, societal and technology trends transforming brand communications around the world:

It’s All About Bloggers

Bloggers, vloggers, social media stars. Whatever they’re called, they’re now businesses; they have agents. But ‘rules’ on disclosure of the commercial relationships they strike up with brands remain unclear. And big differences in regulation exist around the world.

Cautionary note for bloggers - don’t become too promiscuous in pursuit of deals. Your authenticity is your value. Smart agencies can help.

Publisher PowerThe earned:paid media dynamic is not only blurred for bloggers. Publishers, like Bauer Media in Australia, are now charging for social media posts. Time Inc publications in the UK charge for hosting branded videos. Is this the end of truly ‘earned’ media?

Creativity Reigns

Content may still be king, but creativity is queen. Clients value and expect it. Approach (Brazil) now sends in ‘creative teams’ to work with clients to discover months worth of stories. Whether campaigns are centred on craft, culture, data or ‘big’ ideas, the proof is ultimately in business results.

Detail, Detail, Detail

Attention to detail - investment in immaculate execution - is one of the main reasons luxury and lifestyle brands use specialist agencies. And it’s not just about events. Managing the complexity of creating bespoke content for bloggers requires creativity, flexibility and production capability.

ConvergenceAgencies are restructuring to respond to the convergence of communications disciplines. Producers, videographers, data analysts, art directors, coders, talent agents, social media

strategists - all are now relevant job titles at PR agencies. What remains unique to PR, is understanding influence.

The Technology Of Everything

Sophie Wexford of Wired Consulting said at the recent Conde Nast International Conference, “Every company needs to be a technology company”. For agencies, this means embracing big data to inform ideas and using the latest technology to create news. R.S.V.P. created an ‘emotional auction’ for Glenmorangie using the latest biometric tech.

The bottomless appetite online for content presents an opportunity for all agencies. And while many brands are wedded to global ad campaigns, the need for localised content has never been greater. Cue PR agencies who are flexible, fast and good value – Tomorrowland Group’s distinctly Australian campaign for Head & Shoulders is best in class.

Old Media Lives

Karl Lagerfeld recently said, “Online can coexist with shopping. People need to touch and feel things. Movies didn’t kill theatre”. That sentiment can be applied to ‘old’ media - print, radio and TV are far from dead. Niche magazines are thriving, particularly in Germany and Italy, radio lives on worldwide (even Apple’s getting in on the act) and TV still delivers reach.

In-store events need to be about more than a product demo or free gifts. They need to deliver a memorable experience. Where PR agencies win is in integrating communications, content, influencer relationships and creative execution to deliver in-store theatre.

SERMO announced the winners of its own awards for excellence, the SERMO Globes. The SERMO Globes scheme was launched to celebrate the kind of creativity, attention to detail and stylish sensibility the network’s members bring to their clients’ campaigns all over the world. Case studies presented by each agency were judged by delegates on insights, creativity, executional excellence and business results. (See the winners on page 2)

RetailtainmentLocalising Content

Super-ConsumersConsumers with spending power and influence are replacing journalists on trips for Mojo PR in the Middle East. Couture brands have long courted high net worth individuals. Whilst in Brazil there is now a news agency targeting D class consumers in the Favelas.

Published by SERMO

- the f rst ever global, luxury lifestyle

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“Every PR agency needs to understand

how to use big data“

“PR is the ultimate channel neutral

process“

Arun Sudhaman, partner and editor-in-chief at The Holmes Report joined SERMO partners

to give his perspective on what clients need from their agencies, in a time of unprecedented change. Change that has led to the convergence of marketing services – ad agencies, digital agencies, PR agencies, media buyers, all competing for marketing budgets.

He acknowledged it’s a difficult time to be a client, knowing what to buy from which agency. The challenge for PR is to adapt, stay relevant and deliver results that clients actually value.

Here are Arun’s rules for designing the PR agency of the future. All on the understanding that there’s no point being a 3rd rate ad agency – PR needs to retain its USP: understanding influence and how to build relationships with all stakeholders:

1. Use Big DataTo be taken seriously, every PR agency needs to understand how to use big data. If you don’t know, employ someone who does.

2. Insight Driven CreativityClients want creativity that builds brands and business. Entertainment value is not enough. Agencies need to use data driven insights to inform the creative process.

3. Understand TheHuman BrainThe father of public relations, Edward L Bernays, said PR was “applied social science”. That’s still true today. What’s changed is the depth of understanding now available on how the mind works – how we

process information, how we make decisions, how we decide what to believe, how we interact with each other. The latest thinking on human behaviour can help agencies shape, inform and improve the impact of their campaigns.

4. Manage ReputationReputations need to be earned, then communicated. Agencies can add more value by getting in at the earning stage - shaping policy, helping turn words

into action, getting internal audiences on side. All before the business of external communications begins. Of course, you need C-suite access to make this happen.

5. Become Brand JournalistsThe PR industry has always recruited journalists to write brand

stories from the information they’re given. But their real value is in being journalists – unearthing, researching and crafting stories. Sending brand journalists in to clients’ businesses can generate greater breadth and depth of content.

6. Be Channel NeutralConsumers move seamlessly between on and offline worlds. They’re more channel neutral than any agencies. Being channel neutral is difficult for ad agencies – they have a vested interest in paid media. Digital agencies, by definition, don’t operate offline. PR is the ultimate channel neutral process – it needs to be confident about

claiming the coveted central brand building role.

7. Break Down Internal BarriersSector silos (technology, food, beauty, fashion, etc) and practice areas (corporate, consumer, internal, etc) are becoming less relevant and can create barriers between business units. Multidisciplinary teams need to be assembled to solve complex communications problems.

The need for transparency and clarity created by social media and online communications certainly blurs the lines between corporate and consumer disciplines.

8. Recruit DifferentlyRecruitment is the number one challenge for PR agencies. They need to recruit people with new and different skills and yet over 70% recruit from other PR agencies. Broaden your search – look at advertising, digital, research, academia and marketing.

9. Create New Career PathsThe new experts you recruit won’t necessarily want a traditional career path, where long service is valued. Rethink how you appraise and develop talent.

10. Make It Matter Measurement, measurement, measurement. Whatever you do, invest in data and analytics that demonstrate value in business terms. And it’s not just about sales - smart agencies are looking at tools like Net Promoter Score. 1

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Continued from page 1...

BEST BRAND BUILDING CAMPAIGNCampaign: Relaunch of Pantene Pro-V

Agency: Tomorrowland Group

BEST EVENTCampaign: Jameson Cult Film Club

Agency: Burrell Marketing & Publicity

BEST LAUNCHCampaign: Launch of Buro 24/7 in Singapore

Agency: R.S.V.P PR & Lifestyle Communication

BEST USE OF SOCIAL MEDIA Campaign: Movember #Misstache campaign for Aussie Hair

Agency: Talk PR

BEST CONTENT CREATION Campaign: #AussieLovers campaign for Aussie Hair

Agency: Nota Bene

BEST BLOGGER CAMPAIGNCampaign: #ChangeDestiny campaign for SK-II

Agency: Flare Communications

OUTSTANDING CAMPAIGN Campaign: #ChangeDestiny campaign for SK-II

Agency: Flare Communications

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TOP 5 TED TALKS ON CREATIVITY

SERMO network partners from around the world nominate the TED Talks they love for creative inspiration:

WHAT CREATIVITY LOOKS LIKE IN THE LUXURY LIFESTYLE WORLD

Alexa Meade: Your body is my canvasSelected by: Mojo PR, Middle East

Simon Sinek: How great leaders inspire actionSelected by: Tomorrowland Group, Australia & Approach, Brazil

Elizabeth Gilbert: Your elusive creative geniusSelected by: Flare Communications, Hong Kong & R.S.V.P, Singapore

Keith Barry: Brain magicSelected by: Burrell Marketing & Publicity, Ireland

Seth Godin: How to get your ideas to spreadSelected by: The Communication Council, India

CraftBeauty

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Open minded

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COLLABORATIONExperiment

Think Big

ThinkSmall

Surprise

Brave

E MOT I O N

Trends

Culture

RELEVANCE

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GLOBAL & LOCAL LIFESTYLE TRENDS

Food blogs, in particular, healthy food blogs and all things health & fitness, are taking over from fashion blogs. Bloggers are increasingly ‘lifestyle’, sharing every aspect of their fabulous lives and showing followers ‘how to’.

- U.A.E -The U.A.E has seen a wonderful and welcome growth in food markets. The rise in mobile dining via food trucks has resulted in a rise in dedicated street food events. Mojo PR’s client Ghaf Kitchen is already making waves in this area.

Brands are embracing the live-streaming app, Periscope, to connect with their audiences in an ‘unedited’, be-there-with-us way. SERMO agencies are increasingly weaving Periscope into communication plans, allowing consumers an exclusive peek into the luxury/lifestyle world.

- Germany -To reach the large number of immigrants living in Germany (almost 50% of the population), German publishers are starting to produce bilingual versions of popular magazines e.g. ZEIT magazin (in German and Arabic) and DER SPIEGEL (in German and Turkish).

Often referred to as the ‘sixth continent’, the travel retail market has big commercial value and is growing in global importance. Many brands, particularly luxury brands, are focusing their marketing efforts on this highly lucrative and exciting channel.

- Italy -While many mainstream print titles are suffering from declining circulation and ad revenues, niche, collectable magazines such as ‘A New’ and ‘Cabana’ are thriving. Consumers enjoy their artisan credentials and slick branding.

Public spaces and streetscapes are providing the backdrop for a wider range of events than ever before: from interactive retail, creative immersive projects to film screenings, outdoor yoga and fashion shows. Examples include, The Luna Cinema in London and yoga at Izmailovsky Park in Moscow.

- Singapore -The sartorially savvy are turning to customisation e-commerce platforms, Original Stitch and The Armoury, who are putting the region’s celebrated stitching skills to use, turning out completely customised shirts and other bespoke tailored garments for half of what a bespoke tailors charge.

SERMO agencies from around the world report from the front lines on the hottest trends of today:

G l o b a l L o c a l

Words used most often by SERMO partners when talking about creativity in communications:

CONTACT

Telephone

Email

Website

+44 (0)207 268 6100

Katie Brafman, Global Network Director

www.sermocommunications.com

@sermocomms

katie.brafman@talkpr.com

INSTAGRAM HIGHLIGHTS

SERMO: ABOUT TOWN

@headspace_pr

@bastianw @bastianw

@ryanwoor

@tania.stepanenko

@loumezz @rsvp_agency

@rsvp_agency @garysaunders61

@negrifirmanpr@headspace_pr

@dubaitara

Soho House Berlin

What a brilliant conference shared with a great bunch of people. Onwards,

upwards and inspired for the rest of

the year. Gary Saunders – Agency Principal,

Tomorrowland Group, Australia

Great thinking.Great minds.Great stories.

Bettina von Schlippe – CEO & Owner, R.S.V.P, Russia & Singapore

- 4 -

Where We Shopped:

The Store x Soho House Berlin

What We Saw:

Private view of “Nude Animal Cigar” by Paul Kooiker

Where We Ate:Crackers

Crackers is the former Cookies nightclub, reborn as a proper dining destination. The decor is sleek and contemporary and the modern bistro is insanely good.

Katz Orange

Katz Orange is a fantastic dinner venue, set in the charming courtyard of an imposing converted brewery in Mitte.

Haubentaucher

Newly opened Haubentaucher offers a luxury BBQ, music, a garden, sun deck and urban pool and is THE hottest hangout this Summer.

Where We Drank:The Rooftop at Hotel AMANO

Situated in the fashionable neighbourhood of Mitte, this rooftop bar offers unbeatable views of the City and attracts Berlin’s party crowd.

The coolest, quirkiest, stylish establishment in Berlin – and, housed in the former Politburo, it comes with a serious element of history.

Where We Stayed: