As we move into the digital age, brands need to adjust their marketing strategies to keep up with the constantly changing consumer behaviour. We sat down with Sverre Flåskjer, founder and Managing Partner at Equip Capital, a renowned Nordic private equity firm that has invested in Cure Media. Sverre has extensive experience from the marketing industry and we asked for his best advice on how to successfully adapt to the ever-changing consumer behaviour and stay ahead of the curve.
Based on your many years of experience from working at, and close to, companies in the B2C space, what would you say are the biggest changes when it comes to consumer behaviour in recent years?
The marketing landscape has changed drastically since I was a marketing executive. TV commercials used to be the go-to way to reach an audience and were seen as the ultimate event with commercial breaks. Everyone wanted to make these commercials, but now since people are more likely to access media through their devices and social media, the focus has shifted. Consumers now choose what they are interested in and look to their peers for input rather than to authorities or brands. The rare TV commercials that still exist tend to reach an older audience and lack the same attention as before. Music videos have changed in the same way, as consumers are now in control and select what they want to watch, rather than relying on the traditional broadcasting format.
Totally! Consumers are taking control these days. Thanks to social media, we can get exactly what we want, when we want it. Do you have any examples of brands that have successfully made this shift, from traditional to digital?
Nike, one of the leading brands in their field, has changed their marketing approach over the last two decades. They used to spend 70% of their budget on television, but now they spend only 2%. Instead, they focus on reaching people through social media and the internet, using influencers and athletes to create a connection with their audience. Embracing this new marketing strategy is essential for staying ahead as a leading brand.
That’s the way to go! Still it’s fascinating to see how many big legacy brands haven’t changed, right? Even though we all know that we trust other people more than we trust brands, and we spend most of our time on social media, they stick to more traditional channels.
I’d say traditional advertisers are facing a challenge in keeping up with the changing consumer behavior. They can find it difficult to move away from their traditional marketing methods and they are stuck with their media agencies. These companies are not necessarily well-equipped to keep up with the evolving consumer needs, to keep their brands competitive in the marketplace. If traditional advertisers do not make the necessary changes, they risk being stuck in the past and unable to compete.
For sure! Equip Capital has a varied portfolio, from makeup brands to food chains. Why did you choose to invest in Cure Media? What was the driving factor behind this decision?
In the digital age, influencer marketing has become an invaluable way to reach consumers. A lot of people don’t realize the potential of micro and nano influencers, which offer lower risk for brands since they don’t tie them to just one name. Cure has been a leader in this area, providing thought leadership via their podcasts and data platform, and even getting recognized by BCG as a top platform globally. Plus, their success is reflected in their high NPS ratings, showing that experienced professionals prefer to work with them, which truly speaks to how excellent the service Cure provides is.
At the end of the day, investing is what we at Equip do, and Cure is a great partner in that regard; their financials are healthy and that’s something not many other companies at a Nordic level can attest to. To prove that to us, Cure showed us what they did to make Makeup Mekka successful in Sweden. We launched a small Norwegian brand, and with a significant portion of influencer marketing, it became a runaway success.
Yeah, it’s a true success story and it’s really exciting to follow their journey as they continue to grow and win market shares. To summarize, for those individuals in the industry that have been working for a long time and need to update their thinking to stay up-to-date, what would be your most important advice for them to reach the new generations with different habits?
It’s all about changing your thinking and approach. Move away from traditional campaigns and media and move towards being present in people’s lives and building preference. The most successful campaigns now depend on luck, but you need to be out there to increase your chances of going viral. For big brands, preference is key; you need to make people prefer your brand and make them willing to pay more and buy your products more often. To do this, you have to be present on social media and use influencers. It’s all about understanding people’s needs and media habits, and this is where Cure has helped many brands.
It’s essential for brands to consider where they will meet the consumers of the future, and how to remain relevant for the consumers of today. While influencer marketing is a key component of a successful marketing strategy, it is not the only answer. Brands must consider the current consumer behaviour and media habits, as this will be essential for success in the years ahead. This is something that Nike have done well and it’s the reason they have been able to grow over time.