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Scott Cosgrove, media director at Peterborough-based agency Outpost379, puts forwards some solutions to solve issues with paid search results.

Let’s face it, our healthcare system is crumbling, while education and our public services are not far behind. Imagine if we could leverage our current online behaviour to offset the cost of the public services we are lacking.

It’s possible, walk with me…if you ran into an oil company boss and said you found a billion gallons of untapped oil in the middle of Manitoba on crown land, how much do you think they would pay? A rough estimate suggests one billion gallons delivers close to $24 million based on profits of $87.5 billion.

If you ran into an entrepreneurial computer scientist and said they could purchase access to  100 million thoughts a day, over 35 billion thoughts a year in Canada alone, how much do you think they would pay and how valuable would that data be for them?

We’ve reached a point where our Government needs to either start to monetize our data with big tech companies via fair but heavy taxation, or consumers will shift and do it themselves. Let’s be clear, Google should not be punished for building the best search platform. It deserves a fair and generous return on their investment.

The solutions I’d like to put forward would directly affect 80% of Google’s roughly $5 billion dollars in annual Canadian revenue which comes from Search Engine Marketing (SEM). (SEM refers to the ads one is served based on a Google search). To be clear, this doesn’t include the search results for organic non-sponsored ads known as Search Engine Optimization (SEO). My focus is on the paid search results (SEM), which are becoming harder and harder for consumers to distinguish from SEO.

Solution 1 = Turn off SEM

There are many benefits to turning off SEM for the Canadian advertising industry, including Google itself.

Firstly, SEO would be more important. Companies would need to invest in building better, more valuable websites that address consumer search needs. Additionally, they would be more motivated to work with Canadian media vendors and agencies to develop search specific content.

The agencies working on SEM would need to pivot to understand more about SEO. For example, if you’re Nissan and you want to feature in the results for “Best SUV”, you would likely want to work with Canadian media vendors and agencies to develop content about what makes Nissan the best SUV.

Secondly, brand advertising would be more important. Companies would need to invest in emotionally-led brand building advertising in order to drive the specific search behaviour they want. This would mean that more money would be invested with Canadian media vendors in addition to boosting creative quality as brands think beyond a headline and ad copy. Let’s go back to Nissan again. If you’re in their shoes, you would want to promote more people to search the Nissan Rogue not “best SUV.”

Thirdly, there would be no more “Google Tax.” Companies would no longer need to spend money to bring traffic to their website nor worry about competitors exploiting their search behaviour. For example, Nissan spends a lot of money in non-digital channels to drive awareness that leads to search. With no SEM, it wouldn’t have to worry about competitors being the first thing that people see, and this would save a lot of money on running branded search ads.

To use another example, try searching for a specific local pharmacy for the flu shot and the first thing that you come up with is a callout to a paid extension from Google, while the second result is the pharmacy’s own website. Then you click the callout extension, which might have cost the local pharmacy between $1-$5 on something already available through an organic link.

In the non-SEM world, users should have a choice in the algorithm they want to use to see results. For example, do they value design versus legacy and domain authority, or location? That way it’s not one algorithm deciding the fate of an entire business, but instead brands will need to  pivot to meet the needs of their customers digitally. If someone searches “best pizza in town” one person might get a local shop while another might get Boston Pizza based on their preferences, and the way a brand’s website is optimized.

Finally, switching off SEM would be fair. Creating an equal playing field for all. We need to ask ourselves who is benefiting most from search ads? The answer is, simply, Google.

Solution 2 = Tax Google SEM at market share levels until a 60% market share is met

How would this work?

If Google maintains a 90%+ market share for a fiscal year in which it generated $4.2 billion in SEM revenue, it would be taxed at 90%. The resulting $3.8 billion could be used to generate 50,000+ jobs in the public sector. Keep in mind Google only employs 1,500 Canadians.

The rationale behind such steep taxation is that it would then be in Google’s best interest to give up an algorithm/IP to the competition, and even promote rivals by directing traffic to them in order to capture more revenue.

These arguments may seem drastic, and Google needs to generate revenue to deliver search to the masses. However, at the same time, we must do more to encourage the alternative services (DuckDuckGo and Bing for instance) that don’t have the big data benefits that are available to Google. An analogy that resonates with me–if Google was a coffee house it would have no incentive to make the best beverage in town because people are going to continue to visit regardless.

And the really big issue I have is Google’s isn’t paying for the equivalent of coffee beans in the shape of “our thoughts and data.” In my mind, that has to change. For the good of investment in our public services, and for the strength of Canada’s marketing industry. Fair is fair.

Outpost379 is a member of the Institute of Canadian Agencies. Report on Marketing is where leading Canadian agencies showcase their insights, cutting-edge research and client successes. The Report on Marketing provides a valuable source of thought leadership for Canadian marketers to draw inspiration from. Find more articles like this at the Report on Marketing.

Marketing procurement professionals could make important changes in how they invest in the services of creative thinkers, says Leah Power, EVP, Strategic Operations Consultant, Institute of Canadian Agencies (ICA).

On season outside, off season inside. Cycling is a constant in my life.

Cyclists ride what we call “eyeballs out” all the time. Go faster, lay down more watts, throw down the hammer, climb higher and steeper.  More miles, faster. There’s a saying that cycling never gets easier, you just get faster. Every cycling session has to be productive.

But, then, one off season a cycling friend of mine enrolled in a study with the University of Toronto that tested the theory “ride slower, to ride faster.” What? As I just explained, cyclists don’t tend to ride that way. I had to find out more about this, in my quest to ride faster I had to know if this was right.

So I did a little of my own research. Study after study proved that when 80% of a cyclist’s workout sessions were done at a slow pace – breathing a bit heavy but able to speak (we call this zone two) – the gains in speed and watts during the other 20% of the sessions were exponential. In fact, coaches all over the world – coaching way better athletes than me – structure their workouts around slow riding and rest. We have a term for these so-called unproductive sessions – “junk miles.”

Advertising’s productivity myth

This insight from the cycling world led me to think about what I’m calling “The Productivity Myth.” Cyclists hellbent on being productive were instead crashing down a path to burnout.

And guess what the advertising and marketing industry is dealing with right now? A lack of engagement and higher turnover of talent because of this thing called burnout. A recent survey found that 83% of marketing and communications professionals reported burnout, the highest of any job function surveyed.

Productivity is a measure of efficiency of a person completing a task. That is, how much can a person get done and how quickly. How many boxes can they tick in a day. Simply put, in the pursuit of productivity things must have obvious and immediate utility.

However, there’s a tension here when it comes to building cultures of innovation that are important in advertising and marketing. A culture that will not tolerate waste cannot innovate and is left vulnerable to younger, more chaotic, and innovative competition.

The philosophy of slow productivity

You might think that I am against productivity. That couldn’t be further from the truth. I look at the world through an operations mindset, we need to tick boxes and get things done. But if we’re not making the space to foster innovation and creativity, then we’re entering the land of diminishing returns, and burnout.

Enter Cal Newport’s philosophy of slow productivity. The idea that we need our knowledge workers to focus on fewer but more substantial tasks or projects – the outcomes and the outputs perhaps? Minimizing the time spent on actions that have no value.

In this scenario do we really need to promote a culture of extreme responsiveness? Do emails, for example, really require constant checking and responding? Consider instead how batching tasks can provide knowledge workers with the space to think and create.

For example, with email, set an auto reply stating that you respond to emails at a certain time each day, and that if someone has a time sensitive issue they should text or call. Meetings can also be batched, and should only be held to make decisions about a predefined situation, not to define the problem. Only meetings with a clear agenda, topics and questions that need to be addressed, should be attended.

Also consider how this mindset filters down from client to agency. If the client isn’t managing their time effectively then they will waste the resources of the agency, and ultimately affect its ability to provide effective outcomes.

What this means for marketing procurement

But why should procurement professionals, tasked with sourcing marketing services, care about how they buy creativity and innovation? Because research from McKinsey showed that 67 per cent of creative marketing leaders were responsible for above-average organic revenue growth, 70 per cent delivered higher total return to shareholders, and 74 per cent above-average net enterprise value.

Fostering creativity delivers great results, then. But how to do this within the marketing organization and agency? Creating a contract that applies the optimal levels of constraint and a clear order of where money should be invested is a great starting point.

Define appropriate levels of training for agency team members members and ask for details, not just the amount that’s been budgeted (review the agency’s training history as a predictor of future behaviour). Specify outputs and outcomes, and agree on KPIs that determine if these have been delivered. Identify what testing means and how much is to be done.

Build into the contract expectations of operation consistent with the brand’s values, and ensure that value creation (innovation and ideation) versus cost savings (commoditization)  has been defined and clearly communicated to the agency.

The contract should mitigate risk, for sure, but equally it should create an environment where the marketing and agency teams can forge a relationship based on trust and in turn produce better financial results. Many procurement and marketing teams often have opposable goals leading to an adversarial environment, with the agency stuck in the middle. A contract based on more than just rules and safeguards can be a tool that achieves alignment and a foundation for creating great work that works.

To achieve this, ask the innovators themselves about how to structure working agreements and scope to achieve the best ideas and innovation. Returning to the vital issue of productivity and burnout, identify with them a sustainable work level that will deliver creative thinking.

Above all, this requires a balanced approach. Ensure that there is space for the strategic, long-term, outcomes-based work, alongside the more tactical, short-term, and outputs-based activity. In short, ride slower to ride faster.

The Institute of Canadian Agencies aims to positively shape the business environment so that agencies can THRIVE. Working to Amplify, Protect and Transform our members, their people and our industry. The Report on Marketing provides a valuable source of thought leadership for Canadian marketers to draw inspiration from. Find more articles like this at the Report on Marketing.

By Jessica Borges, VP, Business Lead, Koo Multicultural

Summer brings a buzz of excitement for new beginnings, as immigrants arrive in the country to set up their new homes, find fulfilling jobs, or pursue higher education, many with the goal of permanent residency and, eventually, Canadian citizenship. The buzz is even bigger this year, as pandemic restrictions are being lifted and the Canadian government rushes to welcome 432,000 new permanent residents in 2022, as promised in Canada’s Immigration Levels Plan 2022–2024. With a target of 447,055 for 2023 and more than 451,000 for 2024, it could well mean 1.5 million new immigrants calling Canada home in the next three years.

The excitement of coming to Canada and positive feelings about the Great White North have only grown since the pandemic. Take international students, for example—close to 80% said that “safety and stability” were the biggest draw, with 70% citing Canada’s educational reputation, according to The Canadian Bureau for International Education’s (CBIE) 2021 International Student Survey, which reached out to 41,000 international students across 67 Canadian educational institutions.

Canada scores high in global surveys on safety, progress, and quality of life for people from around the world wanting the Canadian dream for themselves and their families. In the 2021 Social Progress Index and the Global Peace Index 2021, Canada ranked among the top 10 countries.

For new immigrants, moving to a new home and settling into a new country means flexing their purchasing power. They not only want to recreate the luxuries they enjoyed in their home countries, but also enhance their lifestyle. They have big dreams for themselves and even bigger ones for their children, and they’re willing to make sacrifices to achieve them. Research shows that their families tend to be younger, larger and more multi-generational than average. Missing the home and community they left behind means recreating festivals and celebrations, considering friends like family, learning new skills, and maintaining close ties with the people back home, even as they embrace all that Canada has to offer.

These immigrants represent a huge profit opportunity for brands that want to grow their consumer base in the short term. And they hold even greater potential for brands that want to connect, create bonds, and build a long-term relationship with new immigrants and the generations to come.

Brands can benefit by following a series of steps that get right to the heart of inclusion with new immigrants.

1. A warm first welcome is always remembered.
2. Be there to celebrate—at festivals, but also during important life moments, all year round.Kia launched its Carnival by celebrating a milestone Canadian moment—a multicultural, multigenerational family’s first camping trip. Unfamiliar with sleeping outdoors in tents, the family gravitates to the comfort of their minivan at night. The online video produced by Stradigi Marketing used this simple insight to resonate with consumers and make them smile.
3. Understand their worries, their insecurities, their dreams. Be there with solutions that meet their needs and bring them value.In these times of vulnerability and change, Pfaff Harley-Davidson, working with the agency Zulu Alpha Kilo, displayed corporate inclusiveness by reaching out to underrepresented riders from the Sikh community. Inspired by Sikh warriors who wove chainmail into their turbans, their prototype product Tough Turban (with 3D-printed carbon fibre and impact-hardening foam) merges modern engineering with ancient tradition. What a powerful way to embrace heritage, identity, freedom of expression, and a sense of pride—by offering riding safety that also protects who you are.
4. Your employees should represent your customers. Make sure you have advisors on your team with lived experiences and rich insights into the new immigrant journey.
5. Be authentic—show respect and genuine care and encourage them to speak in their language and be their true selves.Multicultural audiences are strongly connected to their culture, traditions and language, even as they settle in Canada, and it’s very important for them to pass on this connection to the next generation. Created by Cossette, Google’s Pixel 6 spot, featuring the Live Translate function, brought together Chinese-Canadian Simu Liu and his parents in Canada’s first national campaign shot entirely in Mandarin. Moments like when the Marvel superhero’s parents call him by his nickname, Mama, and tell him to sit straight, brought authenticity and a personal connection that resonated with the audience.
6. Be prepared to listen and keep learning—a new first-generation immigrant isn’t the same as a second-generation Canadian. A newcomer changes as they move forward in the settlement journey.
7. Embrace the diversity within diversity. There are cultural differences, food preferences, beliefs, and differing ways of life, even among people from the same country. It’s easy to make the mistake of stereotyping them.

Diverse, vibrant, strong— the multicultural consumer is the fastest-growing customer base in Canada. Reach out with inclusivity to build lasting bonds and brand love. Celebrate their love… both for where they came from and for Canada, their new home. After all, their success is your success.

Cossette is a member of the Institute of Canadian Agencies. Report on Marketing is where leading Canadian agencies showcase their insights, cutting-edge research and client successes. The Report on Marketing provides a valuable source of thought leadership for Canadian marketers to draw inspiration from. Find more articles like this at the Report on Marketing.

By Darian Kovacs, Founder, Jelly Digital Marketing & PR

The last two years have brought on many changes, shifts, and new approaches for Canada’s businesses. The global pandemic alone was enough to alter the way we approach business functions but alongside this, there were many large and impactful cultural events such as the Black Lives Matter movement, Missing and Murdered Indigenous Women, and Every Child Matters that urged for more effort surrounding Diversity and Inclusion policies from all industries.

Based on these events, Jelly Academy wanted to dive specifically into how hiring and company practices have changed in the past two years for tech and digital marketing industries. In early 2022, Jelly Academy ran a survey, sponsored by Innovate B.C., that interviewed 1,532 Canadian hiring professionals in varying industries including technology, marketing, retail trade, healthcare, life sciences, and education hiring for these roles. From this survey they were able to gather data on how hiring has changed, ways in which Diversity & Inclusion has been incorporated into company culture, and how company policies have shifted.

The study revealed that many participants have felt the effects of the pandemic for hiring, with 56.64% noting hiring for digital marketing and tech roles has become mildly to very difficult. While these were the roles difficult to hire for, they were also the roles respondents were looking to hire for the most. The roles listed included SEO, social media, digital ads, PR, content creation, website development, and software development. This is likely based on the pandemic being a catalyst for digital and tech skills being in demand, with not enough skilled-workers in the field.

While there have been many downsides to the pandemic, it has also set in motion the transition to working digitally and relying more heavily on digital platforms. 50.25% of the respondents stated that digital hiring tools, such as LinkedIn and Indeed, have made hiring more simplified. Continuing to utilize these tools will assist in the process of hiring for the much in demand tech and digital roles.

The study found that flexible work environments may be one of a few solutions to finding skilled tech & digital workers. 37.31% of participants said that offering flexible work schedules has increased the number of applicants they receive for these roles. Flexible schedules include hybrid, remote, flex time, and compressed work weeks. Based on these results, it would be beneficial to hold onto these changed work schedules as they are providing balance for employees and applicants for employers. The changes in hiring have been advantageous and show just how flexible these industries can be, and how they prioritize innovation to problem solving.

Diversity and Inclusion has been a relevant topic for companies for some time, but only in the past two years has it become widely discussed and emphasized. Larger social movements, such as Black Lives Matter, really urged companies to have more transparency in their efforts, demonstrate commitment to diversity, and be held accountable. Based on this, the study had questions around how much has changed since this topic of conversation has come to the forefront in the past two years. Surprisingly, 86.6% of study respondents stated they had not increased or changed their Diversity and Inclusion practices in the past two years. Alongside this stat, 34.33%, the highest collection of respondents for the given question, noted their workforce was only 5-25% of a visible minority.

When comparing these results with 70.23% of respondents noting they believe their industry peers had increased Diversity and Inclusion efforts, there is clear inconsistency. It is hard to say exactly why these stats are so contradictory but it could come down to public facing efforts that may be more emphasized than internal policy. If anything, these results are important reminders that brand image management may be a factor and there is still much work to be done in this department.

The only way to make these statistics more cohesive is by increasing action around diversity and inclusion. Steps like learning sessions, increased hiring initiatives, and funding programs and opportunities for diverse staff members are all ways to work towards equality in the workplace. The businesses surveyed for this study, and other companies in the tech and digital industry, should apply their available resources and commit to concrete, long-term Diversity and Inclusion initiatives.

This study provided enlightening and useful results that should be taken into consideration for tech and digital companies when approaching hiring and Diversity and Inclusion policies. The study showed the aspects in which the industry has changed in the past two years, and where little to no shifts have occurred for others. Results from the study such as increased job applicants when offering flexible work schedules, and digital tools making the hiring process more simplified, show how despite the challenges over the past two years, the digital and tech workforce has not stopped evolving. For the two industries, tech and digital marketing, that are so quickly adapting and putting emphasis on innovation the past two years, it is key that this same mentality is applied to efforts for Diversity and Inclusion. The ability, the innovative minds, and the tools are all there for these industries, they just need to utilize them.

Jelly Digital Marketing & PR is a member of the Institute of Canadian Agencies. Report on Marketing is where leading Canadian agencies showcase their insights, cutting-edge research and client successes. The Report on Marketing provides a valuable source of thought leadership for Canadian marketers to draw inspiration from. Find more articles like this at the Report on Marketing.

By Mo Dezyanian, President, Empathy Inc.

The pandemic affected many product categories but few as profoundly as meal kits. Their adoption rose rapidly in the wake of Covid as people looked for new and constructive ways to spend their time at home.

At the start of the pandemic, we saw a rush to order meal kits, which is demonstrated clearly in the success of the businesses supplying them. For instance, Hello Fresh posted a €369 million global profit in 2020, after a loss of €10 million the previous year.

The reasons why were really simple. We had fewer options at meal times, restaurants were closing, and people weren’t going out as much. Many customers also had more disposable income. The spike in meal kit adoption almost doubled to reach 17% of the Canadian population, 5.3 million people, according to research from Vividata.

An industry nearly doubling in size in a year is extremely rare. But, as we’re gradually coming out of the pandemic, how do meal kit providers work to connect further with audiences and uncover real, new opportunities? And what does the sector need to think about to maintain and build its traction?

Beyond demographics

Demographic research provides some good insights into where the growth in meal kits has come from. Students looking for fresh and convenient meal options, for instance, and higher income households. But, while factors such as age and occupation are great indicators, there’s a chance here to dig deeper.

At Empathy we worked with Vividata on a new research project, “Cooking By The Numbers”, which focuses on what the meal kit sector can do to make the most of the opportunity in Canada as the economy recovers and consumer confidence rises.

One of the insights that we’ve uncovered is that people have a greater propensity to use these meal kits if there’s a life event happening. People who have just bought a new property, experienced the death of a loved one, are recently married, or have a new baby, are especially attracted to the idea of meal kits. For instance, 20% of people who just bought their first home are more likely to use them, says the Vividata research.

Looking through this data shows quickly that the success of the category is not solely related to the pandemic. This gives us a chance to connect with people’s aspirations because the data shows many Canadians view meal kits as a small luxury, a treat that also says they’ve made it in life. Some are thinking, “I’m hiring a personal chef, but without the expense, and that makes me feel a bit better.”

A little luxury

The analogy is the Starbucks Latte. It makes us feel good, and it’s luxurious. But, at the same time, it’s accessible. That’s relevant because research shows that perceptions of meal kits are shifting from them being a convenience product to a semi-luxury that people purchase to feel good.

So, what does this mean for brands in the sector? Traditionally, many have hooked people in on convenience, and the meal itself. And, of course, that remains important. But while that’s why many go in and make the initial purchase, it’s not always the reason they stay.

The big story throughout the pandemic is that certain products and categories will emerge differently. Some behaviours will stick, others will not. And one of the most fascinating things I’ve seen is that many products are moving towards the luxury, or at least “treat” category almost inadvertently through the perception of their consumers.

This shift has implications for both media targeting and the promotion of meal kits. In terms of media activity, we’re seeing the category skew towards younger, more diverse, audiences with heavy mobile and digital media usage. And, when it comes to coupons and bargains, there’s a risk that they cheapen the product. That’s because adopters of meal kits value the status that comes with them.

Stronger customer relationships

There are clear ways to position meal kits in the luxury space. One of them involves charging a premium, while encouraging people to sign-up for meals backed by a celebrity, a chef with a voice in the market, to provide authority that contrasts with looking up a recipe online and being faced with wildly inconsistent results.

That’s an approach worth considering because positioning the product in the luxury space puts the focus on potential customers looking for relationships, who are less budget conscious, and not as attracted to coupons that erode the margin of the business.

Ultimately, greater investment in looking beyond straightforward demographics towards segmentation, targeting and clear messaging will deliver growth for meal kit brands beyond the pandemic.

Empathy Inc. is a member of the Institute of Canadian Agencies. Report on Marketing is where leading Canadian agencies showcase their insights, cutting-edge research and client successes. The Report on Marketing provides a valuable source of thought leadership for Canadian marketers to draw inspiration from. Find more articles like this at the Report on Marketing.