Tag: Ruder Finn Asia

In the futuristic sci-fi thriller Minority Report, Tom Cruise’s character walks through a shopping mall equipped with retinal scanners that immediately serve up holographic advertisements tailored to his personal needs and tastes. It’s intrusive, unnerving, yet feels incredibly believable. That day has finally come, beginning in e-commerce.

With the explosive growth of Large Language Models (LLMs), AI has become the buzzword of the decade, promising revolutionary changes across industries. Nowhere is this more evident than in the realm of e-commerce, where AI holds the tantalising promise of hyper-personalised experiences that can dramatically boost customer satisfaction and loyalty. However, as we stand on the precipice of this AI-driven revolution, it’s crucial to recognise that beneath the hype lies a landscape fraught with hidden challenges and ethical considerations.

The potential is undeniably exciting. It offers unprecedented capabilities to analyse vast amounts of customer data, identify patterns and preferences, and deliver highly tailored experiences. Through sophisticated data analysis and predictive modelling, AI can anticipate customer needs and behaviours with uncanny accuracy. This allows for real-time personalisation of content, recommendations, and even user interfaces, creating a seamless and engaging customer journey.

Natural language processing, another key AI capability, is revolutionising customer interactions through chatbots and voice assistants, making brand engagement more conversational and intuitive. AI’s ability to optimise pricing based on individual customer value and willingness to pay opens up new avenues for dynamic pricing strategies. Moreover, AI-powered sentiment analysis can gauge customer emotions, enabling brands to provide appropriate responses and experiences that resonate on a deeper level.

An Overview of AI in E-Commerce

AI plays a crucial role in enhancing personalisation across various e-commerce domains, including traditional e-commerce, social commerce, retail media, and q-commerce. In e-commerce, AI-powered recommendation systems analyse vast amounts of customer data, such as browsing history, purchase patterns, and demographic information, to provide highly personalised product recommendations that are tailored to each individual’s preferences. This not only improves the customer experience but also drives increased sales and loyalty. 

In the realm of social commerce, AI algorithms enable brands to create engaging and personalised shopping experiences by analysing user behaviour on social media platforms. By understanding individual preferences and interests, AI can deliver targeted content, product recommendations, and personalised promotions that resonate with each customer, fostering deeper connections and driving conversions.

Retail media, which refers to the use of a retailer’s owned media assets to deliver advertising, also benefits from AI-powered personalisation. AI algorithms can analyse customer data across multiple touchpoints, including the retailer’s website, mobile app, and in-store interactions, to deliver personalised ad experiences that are more relevant and effective for both the customer and the advertiser.

In the emerging field of q-commerce, or quick commerce, AI plays a crucial role in enhancing personalisation. By leveraging real-time data on customer location, purchase history, and immediate needs, AI can provide hyper-personalized product recommendations and seamless checkout experiences, ensuring that customers receive the right products at the right time, ultimately improving satisfaction and driving repeat business.

These applications paint a picture of a future where marketing becomes an almost magical experience, anticipating our desires before we even articulate them. However, this rosy vision comes with a significant caveat: the ethical implications of such powerful personalisation tools are profound and cannot be ignored.

Understanding Hyper-Personalisation Perils

The collection and use of vast amounts of personal data, essential for AI-driven personalisation, raise serious concerns about privacy and data security. The potential for this data to be misused, either through breaches or unethical practices, is a real and present danger. Moreover, the opacity of many AI algorithms creates a “black box” problem, where neither consumers nor regulators fully understand how decisions are being made about them.

There’s also the risk of creating filter bubbles, where AI-driven personalisation narrows the range of experiences and information presented to consumers, potentially reinforcing biases and limiting exposure to diverse perspectives. The use of AI in dynamic pricing, while potentially beneficial for businesses, raises questions about fairness and could lead to price discrimination.

Given these challenges, it’s clear that the path forward for AI in marketing must be one of responsible innovation. We need to strike a delicate balance between leveraging the powerful capabilities of AI and upholding ethical standards that protect consumer rights and maintain public trust.

Transparency and Responsible Use

Transparency should be at the forefront of this approach. Companies need to clearly communicate what data they’re collecting and how it’s being used. Privacy policies should be easy to understand, not buried in legal jargon. Customers should have control over their data, including the right to access, correct, and delete it. Robust consent processes and clear opt-out mechanisms for personalised marketing are essential.

Data minimisation is another crucial principle. Companies should only collect data necessary for specific, stated purposes and implement retention policies to delete unnecessary information. This not only respects consumer privacy but also reduces the risk and potential impact of data breaches.

Algorithmic transparency, while challenging to implement fully, should be a goal. Where possible, companies should provide explanations of how their AI systems make decisions. Regular audits of AI systems for bias and fairness are crucial to ensure that personalisation doesn’t turn into discrimination.

Ethical considerations need to be baked into the AI development process from the start, not added as an afterthought. This includes establishing clear ethical guidelines for AI use in marketing and ensuring diverse teams are involved in AI development to mitigate bias.

Don’t Lose the Human

Human oversight remains crucial. While AI can make rapid decisions, human supervision and review processes are necessary to catch errors, address nuanced situations, and ensure alignment with brand values and ethical standards.

Strong data security practices are non-negotiable. As AI systems handle increasingly sensitive customer information, regular updates and testing of security protocols are essential to protect against evolving threats.

Accountability needs to be clear and concrete. Organisations should assign clear responsibility for AI systems and establish processes for addressing AI-related issues or complaints. Regular ethical impact assessments can help companies understand and mitigate the broader societal impacts of their AI systems.

Education is key, both internally and externally. Staff need to be kept updated on AI ethics and best practices, while customers should be educated about how AI is used in marketing. This transparency can help build trust and enable consumers to make informed choices about their engagement with AI-driven marketing.

Collaboration with regulators and industry bodies is essential to develop appropriate guidelines and standards. As the AI landscape evolves rapidly, ongoing dialogue between businesses, policymakers, and consumer advocates is crucial to ensure that regulations keep pace with technological advancements.

The Way Forward

While the challenges are significant, there’s reason for optimism. The conversation around ethical AI is gaining momentum, with more companies recognising that responsible AI practices are not just ethically necessary but also good for business in the long run. Consumers are becoming more aware and demanding of their digital rights, pushing companies towards more transparent and ethical practices.

The future of AI in marketing is not a binary choice between innovation and ethics – it’s about finding ways to pursue both simultaneously. By embracing transparent and responsible AI practices, companies can unlock the full potential of personalised marketing while building and maintaining the trust of their customers.

As we move forward, it’s crucial to remember that the goal of AI in marketing should not just be to sell more effectively, but to create genuine value for consumers. When implemented ethically and responsibly, AI has the potential to create marketing experiences that are not just personalised, but truly personal – experiences that respect individual preferences, protect privacy, and contribute positively to people’s lives.

The path ahead is challenging, but it’s also filled with opportunity. By navigating this path thoughtfully and ethically, we can harness the power of AI to create a future of marketing that is both innovative and responsible, serving the needs of businesses and consumers alike. The journey towards ethical AI in marketing is not just a technological challenge, but a human one – and it’s a journey we must undertake together.

This thought leadership is written by David Ko, Managing Director at Ruder Finn Interactive Asia, the digital arm of Ruder Finn Asia.

MARKETECH APAC is leading the conversation on the future of e-commerce marketing strategies this 2024 and beyond with the E-Commerce Marketing in the Philippines 2024 conference on August 14, 2024 at Crowne Plaza Manila Galleria. Join us and become an integral part of a dynamic community committed to pushing the boundaries of innovation and fostering unparalleled growth in the e-commerce domain.

Hong Kong – Global communications consulting firm Ruder Finn Asia has officially rolled out SONAR 5.5, the latest version of its SONAR crisis management simulation platform. 

SONAR 5.5 enables corporations to enhance their crisis preparedness by addressing evolving risks to share price, revenue, and reputation. This multilingual platform also supports several languages, including English, Chinese, Korean, and Japanese, ensuring comprehensive global applicability.

Additionally, the platform incorporates new interactive features that identify potential areas for future concern, allowing for pre-emptive strategy and planning. 

Ruder Finn Asia has pinpointed the critical consequences of being unprepared for a crisis: disorganised responses, scattered decision-making, lack of strategy, and absence of mission. These shortcomings lead to a loss of narrative, control, and value. Conversely, Ruder Finn Asia’s experience shows that companies that navigate crises successfully exhibit key traits: preparation, leadership, decisive action, and effective communication.

When confronted with a full-scale issue or crisis, SONAR 5.5 is designed to offer a fast, effective, and action-oriented solution. It can identify planning gaps and propose practical, real-world solutions. 

With nearly 100% client satisfaction, SONAR 5.5 creates an immersive crisis environment, enabling participants to experience every facet of a rapidly evolving crisis. This versatile, internet-enabled multimedia platform supports simulations for single markets or global teams of up to 100 people, allowing corporations to assess the effectiveness of their crisis plans and identify any gaps.

Furthermore, SONAR 5.5 can meticulously replicate every aspect of a crisis situation, from negative media reports and share price impacts to stakeholder anger and employee protests. The platform’s immersive design makes participants quickly forget they are in a simulation, thanks to the realistic environment it creates. Each SONAR session results in a more experienced team, enhanced risk planning, increased vigilance, and improved future preparedness.

Charles Lankester, EVP for global risk at Ruder Finn Asia, said, “Together, we build resilience and ensure our clients act with confidence, whatever the circumstances. We have delivered close to 150 SONARs since 2020 and consistently hear how much clients value the experience and learning. The SONAR team is a career expert in reputation and risk management, ensuring our clients stay ahead of situations wherever possible. Reputation is a primary global business risk, but most companies are unprepared and under-resourced in the event of an issue. We are the risk management partner of choice for hundreds of corporations and bring experience across Hong Kong, Mainland China, Asia-Pacific, and globally.” 

Also talking about the launch, David Ko, managing director at Ruder Finn Interactive (RFI), explained, “SONAR 5.5 is the result of years of crisis management expertise and learning, distilled into an actionable, high-value platform, updated for the AI era. The crisis landscape now evolves at an ever-faster pace, so we continually upgrade SONAR to reflect this new environment. New threats such as deepfakes, voice cloning, and bots now require crisis management with technology that meets the challenge.” 

“Previously, we embedded generative AI into SONAR’s operation, harnessing the power of ChatGPT to create multimedia injects that simulate interactions with key stakeholders such as government regulators, activist shareholders, protesting employees, and consumer groups. SONAR 5.5 now streamlines and presents additional interactions visually so that participants can easily track and manage their crisis decisions and actions. The core of SONAR’s value, however, remains the expert guidance and coaching conducted by trainers and their real-time feedback on client team dynamics and effectiveness. This work also incorporates a significant predictive component, identifying potential areas for future concern and preemptive strategy and planning,” he added. 

Korean pop music or most commonly known as ‘K-pop’ has now become a global force to be reckoned with, despite its relative local roots in South Korea. Part of the rising popularity of K-pop nowadays can be attributed to frequent use of social media. Data from Twitter shows that K-pop stars averaged 1.2 tweets per day by second-generation stars, 3.5 tweets per day by third-generation stars, and seven tweets per day by fourth-generation stars. The latter also tweeted 5.8 times more than second-generation stars, and two times more than third-generation stars.

With the combination of global popularity of these groups and the evident presence across social media channels, it is no wonder that a lot of brands, both locally and globally, have tapped into the growing popularity of K-pop groups to be their respective brand ambassadors.

There have been countless examples across the globe of the rising number of K-pop brand ambassadors, ranging from automotive brand Hyundai, insurance brand Prudential, to local brands such as Philippine telcos Globe and Smart, and more recently, global fast-food chain McDonald’s.

Looking at these brand ambassador examples, most of them have unified reasons as to why they chose to tap into K-pop groups: bringing favorite groups closer to the brands’ consumer base, while integrating the K-Pop group’s trademark into the brand’s objective into being customer-centric. 

And while this seems like a positive message for brands to delve into, some customers feel like brands should instead focus on improving their services rather than tapping into K-pop brand ambassadors. For instance, insights provided by media intelligence and insights company Isentia unveiled that Filipino customers shared their concern about Philippine telcos tapping into K-pop ambassadors.

With these seemingly divided thoughts from brands and consumers, it begs the question: are K-pop brand ambassadors the new way for brand representation, or is it merely a ploy of some to garner traction and relevancy?

For our first-ever deep dive under The Inner State, MARKETECH APAC’s feature series, we spoke with four public relations industry leaders: Li Ting Ng, director of innovation and client experience at DEVRIES Global in Singapore; Sailesh Wadhwa, chief strategist at Edelman Malaysia; Andrew Sha, managing director at RedTorch Communications in the Philippines; and Elya Eusoff, general manager at Ruder Finn Asia Malaysia, to once and for all, get their take on the tipping point for brands realizing the impact of K-pop brand ambassadors, and how integrating them can affect the overall health of their brand; their brand value and reputation.

K-pop brand ambassadors: why them instead of local ones?

According to Li Ting Ng of DEVRIES Global, part of the growing trend of K-pop brand ambassadors can be attributed to the fact that prior to its global expansion, K-pop stars have long been tapped by Korean brands themselves to be their front for both their local and global campaigns. However, with the spread of the so-called ‘Hallyu’ or ‘Korean wave’, there had been a steadfast rise of non-Korean brands finally hopping into the K-pop brand ambassador scene.

And with the now evident mainstream success of K-pop globally, Ng also noted that non-Korean brands tapping into the bandwagon can be highly likened to the phenomenon of roping in Western figures, like a Hollywood A-lister actor or actress who have been signed as a brand ambassador.

Such global recognition of these brand ambassadors, Ng notes, can now help brands be able to streamline their brand campaigns to a much wider and global scale.

“In addition, as the world is increasingly connected across geographies, consumers do not distinguish between what the brand does in different markets. Therefore, everything consumers come across from a brand – whether online or offline – contributes to their overall brand perception,” she stated.

This is also agreed upon by Elya Eusoff from Ruder Finn Asia Malaysia, which, according to him, further stamps the brand’s quality of their products or services, and therefore linking the brand to be labeled as ‘international’ and ‘of quality’.

In an example given by Eusoff, he compares K-pop brand ambassadors to the fact that Malaysian brands have also tapped international celebrities in order to add recognition and relevance to their brand. For instance, athlete Usain Bolt was used to signify connection speed with Malaysian telco Celcom, while football player Roberto Carlos was showcased by AirAsia to signify ‘the possibilities of daring to dream, among many other similar partnerships. 

But perhaps, the most notable reason for the rise of these K-pop brands: the growing demographic of K-pop fans, which are well known to start large-scale fandoms. Ng notes that K-pop fandom is one unique asset within the K-pop scene, which in turn is a great opportunity for brands to tap into to grow their consumer base.

Sailesh Wadhwa of Edelman Malaysia also agreed to the aforementioned statement, noting that the heightened interest in K-pop groups can be hugely chalked up to the fact that the genre being a source of positivity for millions of fans worldwide, which pushes brands to think of innovative ways to incorporate the same cheer and positivity through their desired collaborations.

Meanwhile, Andrew Sha of RedTorch Communications also affirms the belief in seeing K-pop fans being the strength for brands tapping into K-pop stars, stating that long before ‘Hallyu’ became globally known, K-pop has been a dominant genre of interest across Southeast Asian nations, including Malaysia, the Philippines, Indonesia, Thailand, and Vietnam. He also noted that with K-pop fans providing a large purchasing power in support of their idols, it is no wonder that brands can also leverage this to generate engagement and sales.

Will riding the K-pop brand ambassador wave work always?

For Sha, brands hopping into the K-pop wave “will work,” as long as it is done right. Sha uses the example of photo cards, a well-known merchandise among K-pop fans, and he notes that buyers from both the brand’s home country and overseas will try to get hold of the product as long as it is relatable and appealing to them because they want to support their idol. 

However, there are mixed thoughts about the effectiveness of K-pop brand ambassadors, as Eusoff states that while a K-pop affiliation may bring value to the brand, they would still need to adhere to their core values from a corporate aspect, and not just merely ‘riding’ the trend, which in turn can bring a negative impact to their existing customers. 

Wadhwa also agrees with this reasoning, stating that while having K-pop brand ambassadors can have brands offer its customers a piece of the pop group’s existing story and persona, there is still a critical point brands should take into consideration, or else it only ends up as an ‘opportunistic tactic’ by the brand, which does not add up genuinely to the brand’s value.

Furthermore, Ng supports this reasoning by noting that brands should also take into consideration the proper affinity of the brand and the group they are pitching to be their front. She also added that just because K-pop has an international following or any related group, for that matter, doesn’t mean brands should immediately jump into this endeavor. Rather, they should ask themselves the purpose of the brand ambassador’s appointment, whether it is for the longer run or merely just to get a boost of attention and sales.

“We have seen many instances of K-pop collaborations resulting in products selling out almost instantly for the latter. However, while you may achieve short-term sales and buzz, it is important to question whether these consumers support their K-pop idols or support the brand or products,” Ng stated.

Tipping the pros and cons of K-pop brand ambassadors

Content, gamification, and activation or pure engagement: this sums up what unique experiences brands should apply as with any brand ambassador, according to Wadhwa.

“We’d like to view them as creative collaborations. And the best natural fit aside from values, personality and talent attraction fit, is their willingness to curate unique experiences for your brand. Given their currency with the audiences we intend to connect with, the brand story needs to have a natural fit, else we run the risk of being left out from the romance,” he stated.

Meanwhile, Eusoff notes that the factors of global link and reach to a much wider audience, as well as the possibility of faster and higher impact results are some of the advantages of tapping K-pop brand ambassadors. This was agreed upon by Sha, who added that factors such as increase in return of investment (ROI) and the brand being the front and center of buzz online or offline gives the brand an advantage to win some brand love. 

On the other hand, almost all of the public relation leaders agreed that extremely expensive fee and strict rules in engagement are the main factors that pose a low point for a brand seeking a K-pop brand ambassador, with Sha adding that one wrong move from the brand would result in immediate backlash from the fans, and Ng adding that the K-pop brand ambassador could potentially outshine the brand and its product or service being offered.

Pointers to ponder for brands venturing into the K-pop brand ambassador space

Both Sha and Eusoff agree that in order to truly work out a K-pop star-brand partnership, there should be questions considered regarding the relevance of the group to the consumers, as well as on the match of the K-pop star’s story and persona against what the brand truly embodies. 

Wadhwa agrees with this as well, stating that in addition to the science and rigor of choosing an ambassador is ticking the boxes on ROI metrics where the real question to ask is – what would the brand’s role going to be when these stars are romancing their audiences.

Meanwhile, Ng’s stance is for brands to take a precautionary route, noting that with issues emerging from the industry such as perpetuating toxic beauty standards, bullying, and its notorious training boot camps and contracts, brands should ask themselves how they should align themselves with the groups or idols they desire to work with.

“If you’ve decided that engaging a K-pop ambassador would benefit your brand, it’s key to recognize that K-pop talents and groups are brands of their own. Choosing the biggest and most popular talent or group may not necessarily add value to your brand, especially if it becomes all about your K-pop ambassador rather than your brand,” she concluded.

Singapore – iFly Singapore, the skydiving destination in the country, aims to strengthen its positioning in the sports and lifestyle spaces, and it has recently partnered with integrated communications agency Ruder Finn Asia to handle all of its public relations business. 

Ruder Finn Asia is the Asia Pacific subsidiary of New York-based Ruder Finn. iFly Singapore has tapped the agency for a one-year remit, where it will be responsible for providing strategic counsel and management of media relations with the aim to enhance the brand’s entire spectrum of marketing campaigns. Beyond PR, the agency will also be iFly Singapore’s digital partner for all publicity campaigns. 

iFly Singapore, which is situated in the Beach Station in Sentosa in Singapore, provides a themed indoor skydiving facility with a wind tunnel that allows both first-time flyers and professional skydivers to enjoy the sport. The destination was put up in 2011 and this year, it marks its 10th year in the business. 

The celebration will be one of the agency’s marquee campaigns for the brand which is currently in the works. Furthermore, a component of the whole appointment covers venue publicity for Sky Garden Sentosa – the rooftop event space owned by and located at iFly Singapore. 

Brian Witte, Ruder Finn Asia’s deputy general manager, said that the agency is delighted to have partnered with iFly Singapore, one who has been making a great impact in Singapore’s sports and lifestyle sector. 

“We are focused on helping the brand transform its purpose communications approach and more effectively engage with the people who matter most to the brand,” commented Witte. 

Meanwhile, Lawrence Koh, CEO of iFly Singapore, expressed similar sentiments, “We look forward to our collaboration with Ruder Finn Asia to touch the hearts of everyone through our sport. Since our inception 10 years ago, iFly Singapore has achieved many milestones, from setting new Guinness World Records with special needs students to grooming gold medallists in international indoor skydiving competitions. We want to continue this momentum beyond 2021 and strongly position indoor skydiving as a sport for both beginners and enthusiasts in Singapore and the region even more.” 

iFly Singapore’s wind tunnel has been home to a number of Guinness World Records in Skydiving. In 2019, it broke its own record of 227 flights in indoor tandem skydiving to achieve a new record of 300 flights. This was achieved by a team of 80 people which comprised a mix of volunteers and teachers, and some skydivers from iFly Singapore. Special-needs students were also part of the feat.