Wunderman’s Morel on Social Media, Online Video and Mobile, Part 2

I recently spoke with Daniel Morel, chairman and CEO of Wunderman, a New York City-based marketing services firm that’s part of Young & Rubicam Brands and a member of WPP. Among other topics, we talked about the difference between social media and social networking, online video, and mobile marketing.

I recently spoke with Daniel Morel, chairman and CEO of Wunderman, a New York City-based marketing services firm that’s part of Young & Rubicam Brands and a member of WPP. Among other topics, we talked about the difference between social media and social networking, online video, and mobile marketing.

Last week I offered part 1 of the highlights of our discussion. The following is part 2.

Melissa Campanelli, eM+C: I know Wunderman has used video extensively in its campaigns. Why is video important?
Daniel Morel: People are more seduced by moving images than fixed images. They’re more interested in entertainment than text. People are inherently lazy — you and me included. We want to be entertained constantly. That’s why television moved from a static experience — simply voice and text — to a medium of moving images. That’s when it became an entertainment medium.

The same thing is happening on the web, thanks to new technology. Moving video — and thus entertainment — is appearing on the web, and when entertainment arrives in a medium, that medium takes off. This is why we’re doing more video on the web. It’s possible. It’s what people like to consume, and it allows for customization. It’s also tested, and we know it works.

My only concern right now is about how many creatives we need to produce if we want to use our data to create customized video. We’ll have to create several versions of the same piece of communication — not just one 30-second spot. So, what kind of production capability will we need?

MC: What about mobile marketing. Do you see that as a growing area?

DM: We spend a lot of time testing mobile marketing. But I still haven’t made a large bet on it yet. Maybe I’m making a mistake, but the reason I haven’t made a serious bet on it is because I follow the desire of my clients, and they’re not asking for it. Sure, I try to push them a bit and have them look at new technologies, but in most cases, I can’t make the economy of mobile work for my clients and me. A large amount of time is spent on working on the mobile platform and technology and making sure messages can be calibrated properly and tabulated.

On a $100,000 mobile marketing project, for example, I could spend $75,000 on technology and only $25,000 on communication. And when I get 10 [percent] to 15 percent of the $25,000, that’s not a lot of money.

We do have several people here working on mobile with clients. Ford is very interested in mobile, as is Microsoft. Our clients Nokia and Burger King are very active in it. But what does that represent in terms of a percentage of our business? It’s not large.

Yes, technology has improved. The chips are getting faster, the messages can now be in color and customized for each platform, and mobile operators are becoming more receptive to the needs of marketers.

So, the channel has become more marketing-friendly and more interesting to me. But, the technology has to mature even more, and the people in charge of the pipe have to recognize the value of marketing more before I make any real bets on it.

MC: Where do you see advertising or marketing being in the next five to 10 years?
DM: You’ll see exactly the same thing you’re seeing today: The existing channels will continue to coexist with whatever new channel or new use of an existing channel comes around.

Books have been around since the 16th century and still haven’t been replaced. The television advertising market is also very robust even after 15 years of internet communication. So, we have yet to see an example of a new medium totally eradicating what was done before.

Customers in the end will decide how they want to consume information. Consumers like to have choices. They want to watch the Oscars on large screens, product demos on their laptops and stock quotes from their portfolios on their mobile phones. They decide which channel is most appropriate. Five years down the road it will be exactly the same.