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Sainsbury's record homeware sales reflect opportunities outside of grocery

Steve Smith's picture

Annual sales of general merchandise at Sainsbury’s has hit £1 billion for the first time, the supermarket announced yesterday.

Sales of items such as homeware, cooking goods and domestic appliances have grown at three times the rate of its food range.

The data illustrates how brand owners are often able to successfully extend their brands to items and services previously not part of their repertoire, but only providing this extension is credible to the target market of those brands. Examples include Porsche designing kettles and toasters, and Audi designing clothing, watches and bags.

audibelt.Png

Opportunities for supermarkets to successfully extend their brands are wide ranging. We have previously looked at fashion and we have just finished a project about whom supermarkets should include in their financial service targeting. Opportunities are greatest for Waitrose and Sainsbury’s, with these supermarkets over indexing the most on people likely to buy financial services from supermarkets. Our forthcoming data shows that these supermarkets should look to target customers from Nationwide, M&S Credit Card, and Barclaycard.

Meteor, Vine stats, AMEX offers, Google and Topshop, Bill Gates Q&A and a hover board

Afternoon all,

First things first if you haven’t seen the videos of the Russian meteor this morning then stop what you are doing and check out the first wave of the apocalypse, amazing - As a side note, crazy how many dashboard cameras there are in Russia.

Vine stats: In more regular news, the Grammys, BAFTAs and Carnival, it was a bumper week for social platforms. With the newest on the block – Vine (6 second videos) being the focus. Here is a great bit of data from SimplyMeasured showing how in just 3 weeks the platform has really started to take off.

And some soothing Vines made with Lego

Search, now with extra enhanced flavour: As you will have heard and hopefully seen the search team’s write up of how the search landscape is changing – this really is a big deal and needs to be understood as we move firmly into the screens world

#AMEXOffers: Continuing their charge into trying out new models and ideas AMEX have built upon their Twitter deal of last year where card holders who synched their Twitter account to their card could tweet for discounts. Now you can directly buy via a tweet with selected partners such as Amazon, Sony, Xbox and others. (Check out their Twitter feed to see it in action](http://olinwtn.eu/AMEXtweets). As an example they are currently offering $50 off a Kindle HD tablet.

For all you fashionistas: This Sunday at 3pm, TopShop and Google will partner for the fashion show. Google, no strangers to the catwalk (DVB models walked with the Google Glass devices last year) will be bringing the behind the scenes action, models eye view with tiny cameras mounted in to the clothes, nice interaction features where you can change the colours of the clothes and of course click to buy amongst other things.

As an industry it is brilliant to watch how the labels are bringing the audience into the action with the tech platforms. The models are all posting on G+, in an honestly non corporate way and helping to create a great experience for the brand

Bill Gates types: In a wonderfully retro feel, Bill Gates was on Reddit the other day to do an open chat. It looks like a throw back to 2000 but some good answers from the big man particularly on what the new disrupting tech will be – “Robots, pervasive screens, speech interaction will all change the way we look at "computers". Once seeing, hearing, and reading (including handwriting) work very well you will interact in new ways”.

(If you go the right hand scroll bar to the 2nd yellow line you can see it all formatted neatly).

And finally… It isn’t the awesome pink one that Marty uses and it doesn’t hover, but you can buy an original Pit Bull hover board, as used by Griff, on ebay, only $12k!!!

Have a great w/e

Oli.

Mobile Update #39

Michael Vitello's picture

Credit Card company American Express has recently been very innovative and ultimately pro-active in the mobile space. They launched a service that lets customers buy things using Twitter.

The new service would let people who link their cards to their Twitter accounts buy products simply by tweeting in response to special offers made over the service.

"You can turn a hashtag into more than just a conversation - you can turn it into a trigger that actually can spark commerce," says Joel Lunenfeld, VP of global brand strategy at Twitter.

On another note, Google and Apple, enemies forever, may find an expensive common ground. Google are willing to pay a potential one billion dollars to remain iOS’s default search engine. Maybe after the Apple map fiasco, they would be more inclined to take this.

Finally, the MWC (Mobile World Congress) will take place in Barcelona from the 25th February until the 28th and we will surely keep an eye on it. However, will this event end up being a little less interesting than in the past, like what happened at the CES? Because CES generated few mobile announcements, the question remains: will MWC fill that gap?

The cab conductor: reading Hailo's success story

Date 11th February, 2013

If you've ever tried to hail a taxi in a big city, you'll probably be familiar with the system of hopeful kerbside gesticulation -- and its typically low success rate. It's this urban problem that attracted Jay Bregman: "I have always been obsessed with eradicating inefficiency," says the CEO of Hailo, whose taxi app is now up and running in nine cities around the world.

"Click here to read full article"

Google Could Pay Apple $1 Billion Next Year To Remain Default Search Engine On iOS, Report Says

Date 12th February, 2013

Apple and Google are enemies and partners at the same time due to asymmetric competition. According to a report from Morgan Stanley, Google could pay more than $1 billion in 2014 to remain the default search engine on iOS. In 2009, Google paid only $82 million for the privilege. Analyst Scott Devitt believes that it is a per-device deal growing every year.

"Click here to read full article"

This is a snippet- read the full post.

Trends, Tweets and Toppings: surprises from Pancake Day

Scott Thompson's picture

Yesterday's Pancake Day saw the traditional marking of the day reflected in online behaviour.

Looking at Google Trends, we can get a picture of how different countries see the day in different ways. Worldwide, there is a clear spike every February as those in several countries look for recipes and information;

In the UK, the peaks are far more pronounced, with searches for recipes a greater proportion of total searches; it is very clear that other than Pancake Day, there is very little British interest in the humble pancake;

Compare that to the US, where February sees a relatively minor blip in pancake-related searches;

And in Australia, a combination of the two; clear peaks each February, but with ongoing interest throughout the year;

On the social side of things, we used our ECHO toolkit to take a look at what people were tweeting around pancakes. With over 800,000 tweets mentioning pancakes, there was plenty of data to look at.

The pancake-related tweet that caused the greatest spike in volumes was from One Direction member Louis Tomlinson, who got over 55,000 retweets (at the time of writing) for tweeting that;

This was followed a little later by his long-term girlfriend's Eleanor Calder's tweet;

Which had over 11,000 retweets at the time of writing…

However, although the impact of those was notable — lots of retweets and replies in a short space of time, as a trend it was relatively short-lived.

A little earlier, this tweet from @Metal_Hammer magazine started the hashtag game "replacebandnameswithpancake";

The hashtag quickly took off and continued throughout the day and into the evening, with over 100,000 tweets including the hashtag by the end of the day— around one in eight of all pancake-mentioning tweets.

PancakeTweetsOverTime.png

So, what could the pancake-related tweets tell us, other than about the popularity of pop stars and hashtag games? We took a look at the most popular pancake toppings that were mentioned to see what Twitter's favourite pancakes were (by number of mentions, along with the keyword 'pancake'.)

PancakeToppings.png

Fairly unsurprising that the classic lemon & sugar came out top (boosted by a mention by Gary Barlow). But perhaps the appearance of Nutella in second place was more surprising — the only appearance of a brand topping in our charts.

But a little upsettingly (especially for pancake lovers), the 800,000 pancake-mentioning tweets yesterday marked a significant decline from the 1.2 mentions on pancake day 2012. Presumably as a result, most topping mentions declined in volume compared to last year — with banana as the one exception of a pancake topping that has held onto its following. This might well be reflective of a broader trend; according to Lyle's, the British Pancake is in danger of dying out, with 25% fewer people marking Pancake Day than ten years ago, 17% of Brits feeling that it was 'overrated', and a quarter of brits saying that they did not know how to make a pancake from scratch.

So, just for that 25%, one final tweet from Jamie Oliver which might be helpful for pancake day 2013;

What can Tesco expect to achieve through its Clubcard TV trial?

Steve Smith's picture

A while ago, I wrote about how brands need to be generous to their customers. They need to give them something extra in order to reward and thank them. When brands do this, they are able to enhance or create:

Differentiation
Relevance
Equity
Admiration
Memory and thereby word of mouth

Fast forward to this month, and news is emerging that Tesco is trialing a free TV and film service for its Clubcard customers. The service is running through Blinkbox, the streaming service the supermarket bought an 80% share in back in 2011. It promises "no schedules, no fees and no fuss", and the site explains how Clubcard TV is a "thank you" to its customers.

clubcardtv.png

Mums’ use of the service means they will give Tesco a greater role in a central family routine – TV, thus building brand equity and brand meaning. Word of mouth is also likely to be one of the outcomes of Clubcard TV, meaning an uptake in applications for Clubcard and thereby footfall at its stores. Mums talking about the service will also mean that some lapsed Clubcard owners are likely to reignite their relationship with the supermarket.

Given the importance of word of mouth, it is important that Tesco identify, target and engage mums who are most likely to be influential within their personal communities and whose personal communities are sufficiently large to maximise coverage. My colleague Paul Selby demonstrated in an earlier post how supermarkets can reach such people through our experience planning application, Community Igniter.

SMG Source talk with Stewart Easterbrook, Starcom MediaVest UK CEO, at this year's SMG Global One Awards

Gill Huber's picture

See an interview with Stewart Easterbrook CEO of Starcom MediaVest Group UK; where he highlights the need for us to keep a close eye on consumers, on the content they engage with and where they choose to activate that interaction.

Stewart Easterbrook from SMGSource1 on Vimeo.

Katie McAuley talks with SMG Source at this year's Global SMG One Awards Conference

Gill Huber's picture

Starcom Business Director Katie McAuley discusses the importance of embracing new capabilities like realtime marketing as part of our Starcom MediaVest Group One Awards Conference in Chicago

Katie McAuley @ ONE Awards from SMGSource1 on Vimeo.

Chief Digital Officer Ian James talks with SMG Source at the Global SMG One Awards

Gill Huber's picture

See Ian James, Chief Digital Officer EMEA, talk about the role of digital in awards, the need to keep it simple and to understand search, social and mobile.

Ian James @ ONE Awards from SMGSource1 on Vimeo.

Google Enhanced Campaigns - POV Starcom Mediavest Group

Google’s new announcement about campaign targeting in Adwords suggests the advertising giant is increasingly committed to the tablet format. Adwords campaigns will migrate to an ‘enhanced’ format where they collectively target desktop, mobile and tablet devices.