#GoogleForIndia 2019 – Keynote for Marketers

MANASI SCOTT: You can give it up
one more time for Kings United. How exciting were they? By the way, this has got
to be the coolest afternoon crowd I’ve ever witnessed. I love the whistles
and the clapping. Keep it going all through. Yeah. I’ll tell you something
a little formally about this breathtaking
performance, ladies and gentlemen. Of course, Kings
United, they recently won NBC’s “World
of Dance” and are one of the many
inspiring stories from the universe of YouTube. Started as a small dance group
from Vasai in Maharashtra, The Kings learned these
killer dance moves off YouTube to put India on a world map. Every day, millions of Indians
use our digital platforms to seek help and get inspired
in their moments of need. It’s always been our pursuit
to bring their true potential and the true potential of the
internet live to as many people as we can. Good afternoon, and welcome
to the most exciting edition of #GoogleForIndia 2019. I’m Manasi Scott,
and it’s an honor to present this afternoon’s
proceedings to you. To build on this momentum
and showcase our commitment to helpfulness, I would now
like to welcome on stage Vikas Agnihotri, Country Director
India Sales at Google, with a huge round of applause. [MUSIC PLAYING] VIKAS AGNIHOTRI: Good
afternoon, everyone, and welcome to the fifth
edition of Google for India. We appreciate your
taking the time out to be with us here today. We had an incredible
morning session, with a packed audience,
where we shared a number of our new launches,
bringing the internet alive for a billion Indians. I want to take the next few
minutes to recap the morning session, just because
some of our guests were not able to join us. With over 460 million
monthly active internet users and 390 million
active smartphone users, India is truly
making big strides in becoming a digitally
connected nation. India’s digital transformation
story is incredibly inspiring, and we respect the opportunity
that we have, as Google, to contribute to this story. But even today, more than half
of the nation is not online. Access is still a
challenge, and many of the products and solutions
do not cater to their needs. After completing a
project of bringing high-speed Wi-Fi connectivity
across 400 railway stations with G Station,
we are continuing to bring public Wi-Fi to
thousands of public buildings and spaces across
the big cities. And today, we announced a
partnership with BSNL to bring high-speed public Wi-Fi to
villages in Maharashtra, Gujarat, and Bihar– places that have never
experienced free Wi-Fi before and where the impact of better
access could be profound. We also announced an
initiative to help the millions of Indians who
are still on feature phones. In partnership
with Vodafone Idea, we launched a
toll-free phone line powered by the
Google Assistant that will enable people to call a
single number free of charge and get answers
to their queries, just like you and I get
from the Google Assistant. Improving access to the
internet is just the first step. We also need to make it
relevant with the information that the Indians need in the
languages that Indians speak. Voice and online video
are becoming the biggest– the biggest– unlock to the
education barrier for people to get on the internet. In the last two years, we have
added nine Indian languages on the Google Assistant. I am thrilled to share
with you that Hindi has become the second most
popular language after English on the Google
Assistant globally. And starting today,
we are making it even easier for the
Hindi-speaking population to speak and interact with the
Google Assistant more naturally by merely saying, hey,
Google, talk to me in Hindi, even if the device
settings are in English. And we have added a whole
set of new capabilities for the Indian language users
on the Google Assistant, Discover, Bolo, and Lens. And I do hope some of you
have got the opportunity to interact with a bunch
of those experiences in the sandbox outside. India’s biggest story in
the booming internet economy has been the rise
of digital payments. Last month, UPI crossed more
than 900 million transactions in one month in itself. And G Pay, with 67 million
monthly active users, has played a role
in its success. Our vision is to unlock the full
value of the digital economy for everyone by making
it easier and intuitively simple for people to
adopt digital payments. And because we know that
small businesses are the lifeblood of
the Indian economy, we launched this morning
Google Pay for Business– a brand-new app giving merchants
a free, simple, and secure way to adopt digital payments. The app manages the
back end of cash and expenses and
expense management without the hassle of
investing into past solutions. As a company, we have
believed in building open, web-based platforms
for everyone to use. We want to make Google Pay more
than just a payment channel. Today, we announced Spot,
the platform on Google Pay. This will enable merchants
to offer services within the Google
Play environment or within the G Pay
app and give users a more convenient
way of getting things done in one place
or finding things that they need in one place. We are really
excited about this, as brands and
businesses of all kinds can create unique new
propositions for users of G Pay. Much of the announcements
we made this morning have been possible because
of the advancements we’ve made in computer science,
machine learning, and AI. And we are putting
this technology to use in many new areas to
solve real-world problems right here in India. I’m delighted to share that
we now have Google Research India, our newest AI
research center based out of Bangalore, to further
drive innovations in AI. As you can see, we are
committed to bringing the internet alive by building
a helpful Google for everyone in India. The path ahead is
full of opportunities. The path ahead is
also challenging. But we are extremely
confident about the future that a digitally connected
India holds for all of us. And while we are
learning from India and building for
the future, there is a lot that we can
learn from each other. And that is the objective
of this afternoon session. We have an incredible lineup of
speakers and industrial leaders who will share their
experiences of embracing digital and how that has unlocked
new opportunities for them. I’d like to leave you
with a few stories that I’m immensely
proud of, stories that show how brands
across categories have used digital smartly
to solve all their business goals for both online
and offline use cases. Thank you. [MUSIC PLAYING] TARUN JHA: We had a problem. We saw a drop in portfolios
at our showrooms, so this company helped
us get more walk-ins. We chose local companies to
make the life of our customers easier, to help them find
our dealerships with ease, using maps and directions. All the results are fantastic. JYOTI BANSAL: There
are 63% higher walk-ins into SKODA dealerships
at a 40% lower cost. And these kind of designs always
make the client and the agency happy. [VIDEO PLAYBACK] [MUSIC PLAYING] – The biggest challenge for
any new age business today is to get visible, get the
customer onto the platform. On our Google
Campaigns, we’ve been able to target
the right customer base using customer matching
affinity and customer intents. Harpic had one of its
best deals last year. – Oh, my god. – And what’s thoughtful about
using Google or data-led marketing is the precision
that it allows you to actually leverage. I think it’s what makes
YouTube very interesting, because you can touch both
the top and tail of India and drive the right messaging. [MUSIC PLAYING] – Programmatic has helped us
supply campaigns effectively, efficiently, and at scale. Additionally, we
saw a 500% increase these in website visits
and an impressive ROI growth with almost close
to 4,000 [INAUDIBLE].. [MUSIC PLAYING] [END PLAYBACK] MANASI SCOTT: Thank you, Vikas. It’s truly great to see how
Google’s numerous initiatives are changing lives
for the better for millions of
people across India. But I’m sure there’s one
question– perhaps many– that each and every
one of us have thought about at least
once in our lives between our everyday
shenanigans. Yes, it’s privacy. To be a responsible
advertiser, we must have respect for consumers’
data at the core of everything we do. So without further
ado, I would like to invite Simon Kahn, Chief
Marketing Officer of Google APAC, to share his views on
the future of advertising in a privacy-conscious world
with around of applause. [MUSIC PLAYING] SIMON KAHN: Thank you. Good afternoon, and thank you
for joining us here today. As the world
increasingly digitizes, consumers, businesses,
and governments are asking important questions
about the implications and impact of this shift. Now, one key area of focus
is data privacy and security. If you were here
this morning, you would have heard
several references to data privacy and security,
including from the government minister. And all of our businesses now,
all of us here in the room, have the ability to collect more
information about our customers and from our customers
than ever before. Our customers, and I think
all of us individually, want to know that this data
is being used responsibly and it’s being safeguarded. Now, data-driven marketing
and advertising– which is something, as a CMO,
is very close to my heart– provides enormous
potential for us to deliver real
value to customers by providing highly personalized
offers in the right time and in the right context. However, we need to
develop frameworks that balance between
privacy and personalization. And we need to communicate
more effectively to all of our customers
about our data privacy practices and principles. So what I’d like to do
is just share with you how we at Google think about
privacy and personalization. In the early days, starting
from the beginning, with just the search
engine, Google has always been about providing
helpful products and services to our customers, every
day, for everyone. We seek to address and
answer the big questions, but also help people
throughout their daily lives. And in the early days, Larry,
one of our co-founders, would ask a question that was
simple, yet quite important, when he was presented
with a new product idea– is this something that you
would use once or twice a day? We call this the
toothbrush test. So if it passed, if
we could definitively say that this is a
product that was going to be part of
somebody’s daily life, was going to be
helpful for them, then it was able to move forward
in our product development. So to this day, it’s still
a critical litmus test in our product
development process. And from our humble
beginnings in search, we use this test
to ensure that we make the right products to
help you throughout the day– from finding the
right restaurant based on a craving, from
getting the fastest route home after a long day at work,
and perhaps, most importantly, getting real-time
cricket scores. Now, we have billions of
users across a wide range of products. And the data that these
users provide to us and produce when they’re
using these products help us to improve their
experience in using them. So, for example,
search autocomplete. Search autocomplete makes
predictions about what searches users are putting in. It actually speeds up the
process to get to the answer that you’re looking for. Now, in addition to using
location or your search history, we actually
examine all searches that happen across Google to
understand common searches or trending searches. So in this example, you see
that in India, users often, when they’re searching
for mobile phones, want to look at
it by price point. So we’re suggesting an
autocomplete “different price points.” YouTube, of course,
also does this. It recommends videos based on
watch history, the popularity, and, of course, your
previously liked videos. So this happens to be
my recommended page. And as you can
see, YouTube knows that I like to watch cooking
shows and talk shows, and it knows that I’m even
a secret Taylor Swift fan. Now, of course, search results
get better and more relevant with additional data, such
as location information. I live in Singapore, and if I
search for kaya in Singapore, I get coconut jam,
a delicious treat. But if I’m here in India
and I search for kaya, I get a skin care clinic. Now, both answers
are right and wrong. They’re right if I
tell Google where I am so they can
provide the most relevant answer at that time. But of course, they’re
clearly quite different. All of these
personalized experiences were made better and more
helpful because of the data that I shared. But I think this raises
a question for all of us about how we protect our privacy
while also getting personalized assistance. And within the industry,
there’s a giant debate about the balance between
personalization and privacy. Can these two things coexist? We know that privacy
is increasingly important to consumers,
and it’s very complex, because privacy is personal. We each define privacy
in our own way. There’s no one definition that
equally applies to all of us. For example, for
parents like myself, privacy is setting up
digital ground rules. It’s keeping an
eye on screen time. It’s setting a bedtime,
not only for the children, but for my children’s tablets. And of course, it’s blocking
inappropriate content. But privacy for
small businesses is about safeguarding
customer data. And then, perhaps,
privacy for teens may be about deleting
selfies in the future. So as business leaders,
it’s imperative that we earn our consumers’
trust in this area of privacy. And if we don’t do this well,
the consequences are huge. For 81% of consumers, trust
is the number one factor when they’re considering brands. We have a lot of work to do. Only 34% of consumers
actually trust the brands that they’re using. And here in India,
78% of users say that they would stop doing
business with a company that misused or lost their data. We need to do a better
job of telling users why we’re collecting the
data, what we’re using it for, and giving them control over
how this information is used. At Google, we take this
responsibility seriously. Billions of users and trust
their personal data with us, such as their email in
Gmail, such as their pictures in Photos, or their
files in Drive. This data is private. It’s never used for advertising,
and we secure it for them. We also use a privacy framework
with three principles– transparency, full visibility
of the data that you’re providing to us and
your preferences; choice, having users decide
how their information is used stored and deleted; and
then, of course, control, helping people decide
their preferences for product features
and for settings. Now, Google users
have a one-stop shop within the Google
account, which allows them to manage this activity. This one-stop shop gets
20 million visits per day. Within the Google account,
we have an ad section. And so what I want
to do is I want to share with you kind of how
we take these privacy principles and put them into action
within this framework. So within the Google account,
what you can see here is the ads personalization. It’s helping users
understand the information that we’re using to
generate personalized ads. It includes what data
is being collected and who’s collecting it. And we ensure that the language
we’re using is not legalese. It’s clear, and it’s
straightforward. So that’s transparency. Now, if we move to choice
within ad settings, you can see the list
of all of the interests that we use to
personalize these ads. Users have the option
to decide how much they want to share, which
actually leads to control. We put the user in
the driver’s seat by giving them the ability to
turn off specific interests. For example, here, I
can turn off cricket and won’t receive ads
targeted to this interest. Of course, I would
never do that in India. Users have control
over who has access, how long their information
is stored, and how it’s used. So as I’ve noted before, we
all have a responsibility to balance privacy
and personalization. I don’t see them as opposites. Personalization
enriches experiences. And if we can use a
minimum amount of data to provide those
rich experiences, our users will love
us for those products. But users need to be informed
and in control of their privacy preferences. If we do that well, we
will earn their trust. So I want to close by
emphasizing how seriously we take our role in this ecosystem. Our mission to make the
world’s information universally accessible is powered by
an advertising ecosystem that keeps the internet
open for everyone. I encourage you to adopt
a privacy framework that will safeguard your
customer’s data and give them transparency,
choice, and control. Thank you very much. [APPLAUSE] MANASI SCOTT: Thank
you so much, Mr. Khan. That was truly insightful. As our consumers evolve
at the speed of light, their expectations
from brands like us also change at a rapid pace. Consumers’ demand information
in the palm of their hands, which brings into prominence
a digital first world that is continuously growing. So how are businesses
adapting to this change? What does it take to
digitize the enterprise and truly deliver the best
of advertising to our users? To answer these
questions, I would like to invite onto stage
Steve King, CEO Publicis Groupe and CEO Publicis Media,
for a fireside chat with Scott Beaumont, President
Google Asia-Pacific. Steve King is a regular
presenter at industry forums and was also named to
Adweek’s Power List in 2018, 2017, and 2016. Ladies and gentlemen,
one more time, please give it up for Steve
King and Scott Beaumont. SCOTT BEAUMONT: Well,
good afternoon, everyone. It’s great to be here, and
thanks to Steve for joining. So as you heard, Steve is the
global CEO of Publicis Media and the global COO
of Publicis Groupe. So let’s start by asking, which
role is the most difficult? STEVE KING: Well, they’re
both pretty tricky. Well, I think the
Publicis Media role– you know, I’ve been
in the media world for 30-odd years starting
and acquiring and building a business from
when we started– very executional start. And obviously, I’ve been with
that business all the time. So that’s a business I’m
much more familiar with. Being COO of a group of
Publicis of about 75 markets and 90,000 people,
as you can imagine– and it’s very disparate now. We’ve got a huge component
in data and technology and content and creative. And as you know, we are
trying to make the transition from a traditional
legacy holding company into what we’ve called a
platform company, of which you probably can teach us a lot. So I would say they’re both
very challenging, exhilarating roles. The COO role is the
one which is probably more focused on at the moment. SCOTT BEAUMONT: So
talk a little bit more, then, about that transition from
a holding company to a platform company. And how do you go about that? How do you begin to think about
what the building blocks are? STEVE KING: Well, first of all,
it’s a pretty audacious thing to say that we’re going
to change an organization, as you know. Google started out as a tech
and engineering business, and that stayed is your
fundamental core d’esprit, whereas our business was very
much a sort of legacy service business. When I joined the business, it
was an executional business. It is very simple. It was the creation
of long-form content. You had retentive,
receptive consumers who’d watch advertising. And then our role was to
place that advertising in front of them. Wasn’t that difficult. It was
very much an executional role. And that business has
changed dramatically. We started with a few
dozen people in London, and the business, just
on the media side alone, is about 25,000 people
around the world. SCOTT BEAUMONT:
Yeah, that’s amazing. STEVE KING: But what
we’ve recognized, if we’re going to make that
step change from being a service business– and I think
everybody here will recognize the challenge in
service industries, whether you’re a travel agent
or employment agent or any of those type of
companies, your technology is disintermediating
that service. So what we’ve tried
to do is to say, look, the way that we’re
going to provide value– and we’re always going to
be a service business– is to create horizontal platforms. So what we’re trying
to do is to build out things like technology
and data and analytics that we can then plug
into on a global basis and serve those through brand,
through our client teams. And so it’s obviously a sort
of bold, ambitious vision, one that we’re trying to do it. And obviously, as
you know, we’ve made some pretty
strong acquisitions, which we hope we are going
to learn from and help us accelerate this step change. SCOTT BEAUMONT: So let’s come
back to that in a minute. But let’s just go back,
because you mentioned about the profound change needed
to create in the organization. So when we think about culture
and building the culture, mostly we’ve got this
famous phrase, which was no silo, no solo, no bozo. Does that still
live and breathe, and can you tell us a
little bit about that? STEVE KING: Yeah. It’s interesting,
because that throwaway comment– it wasn’t supposed
to be publicly given– no silo, no solo,
no bozo actually came from, really, when we
re-pivoted the organization. Publicis, unlike
Google, has been around for sort of nine decades. And we had an event
in San Francisco. And we invited lots
of our brand leaders. And I was running one part
of the media organization, and we had the head of one
of the creative agencies, Leo Burnett on Publicis. But we were very disaggregated. And at the time, we
had a positioning around Viva La Difference–
celebrate those differences. And we were not really
connected any way. And the idea of this
gathering in San Francisco, like this, was we would get lots
of senior directors together, and then we’d get
some, what we thought, visionary external speakers. And in fact, I did the– by
irony, I did a reverse of you, and I tried to
interview Sergey Brin– SCOTT BEAUMONT: Oh, did you? STEVE KING: –obviously,
your founder. And interesting me interviewing
him about technology. But anyway, that’s
a different story. But at this meeting, I
think many of these– we had some of the
founding directors from Facebook and Amazon
and Uber and Tesla. I think we recognized that
that was a huge rallying cry. Our sort of historic
organization that had lasted, let’s say, our first
90 years was not really future-proof for the future. And we were going
to be challenged by all sorts of external forces. Technology was going
to play a huge impact. And that was where
we said we needed to re-pivot the organization. We had already some
incredibly diverse assets, but we needed to collate
these in a very different way. So we created, really
for the first time, which will seem surprising
to an external inlooker, single-client teams. So we had a single-client team
for big clients like a Samsung and a P&G and GSK, et cetera. And their job is to
try and bring together all these different
assets and capabilities. And it was a new
hybrid role, so we weren’t going through
a media funnel or a silo or a creative silo. We were trying to
break those silos down. And then we realized, in that
phrase– no silo, no solo, no bozo– was really the
behavioral change that we recognized into the company. So just one worrying
about a narrow P&L, we had to change that
and make a step change really to try and think about
how could we bring things together. And as everybody
here could imagine, that is not a step change
that is made easily. People don’t always
embrace change. Many people, including me, had
worked in a narrow, siloed P&L organization. And trying to break those
down– and for example, we, I can tell you, in the first
year of Publicis Media, which was created out of that
gathering in 2015– it was created in the
latter half of 2016. In the US, we probably had
something like 100 disparate P&Ls so we could manage the
business under what we collated through acquisitions
and mergers. And we really created
one single P&L in order to create that
fluidity of talent and thinking and ideas and technology so
we could create a much more fluid organization. I’m obviously
simplifying that journey, but it was a huge
change that we are– it’s never going to finish. SCOTT BEAUMONT: What I
liked about that, though, is you’ve been through a change
that when you go and speak to clients about
how they adopted the digital age,
the connected age, you’ve actually walked
the walk and actually lived through a lot
of cultural change that they may have to
live through, as well. Let’s go back to
the acquisitions you mentioned– so
Sapient, a few years ago, Epsilon very recently. What does that bring to
you, and what kind of use do you want to make of it? STEVE KING: So I’ll go back
to 2015, that seminal seminar for us in San Francisco. We had literally just
acquired Sapient. And if you’d have asked us,
most of our people at that time, I don’t think people
knew what it was. It was a very disparate
business to ours. It was one where they
were helping clients– it was a technology-based
business. Was more akin, I think,
probably to your organization. Most of their key
relationships were with CIOs and CTOs, whereas
our core business was generally through CMOs. Predominately, it was a
systems integration company that was helping companies with
their technology challenges about how they
could make changes structurally and
organizationally to embrace a new digitally led future. We felt this would be hugely
compatible as an extension of what we were trying to do. And there were challenges
with that integration. It was the first major
acquisition that we had done, and we learned a lot. I made loads of mistakes. We made lots of
separate acquisitions. I mean, actually,
here in India, we re-pivoted a purely
digital company. We acquired two or
three companies, a company called Resultrix
and Convonix here in India is a good local example,
which has given us a really– from quite a later start. We’ve only been going less
than 20 years, actually, which is sort of a late
entrance into India from a media perspective. And we now have a
pretty dominant position in the digital marketplace. I suspect we’re the
largest partner with Google here in India. Move forward much more
latterly to late last year. We had already seen huge
success with the ability of putting data at the center
of our clients’ transformation. We had a platform called
Publicis PeopleCloud, and many of the major headline
client wins and conversions, like Marriott and GSK and some
of those big global clients, we had won and been
successful for a single lens of the consumer
through using data. And we had the opportunity to be
one of the potential acquirers of Epsilon. And it was 11 weeks ago– I think 11 weeks
ago in three days– we closed that acquisition. And that, as a business,
it’s certainly the biggest acquisition we have ever made. It was 4 billion,
so 40% of our market cap behind this organization. It was a time when, obviously,
the economic environment is pretty challenging. But it was a business–
if Sapient brings us systems integration and business
transformation to our clients, Epsilon brings us,
at scale, the ability to understand consumers,
brought us first party data, and it gave us huge
access to engineering. And it’s that ability to
build IDs for clients, owned by clients, in order that
they can reach and understand their consumers much more
effectively in a digital age. We felt would be a huge
accelerant for a journey that we’d started three
or four years earlier. What’s interesting is
that if you take Sapient, where actually, it was
quite a disparate business– Epsilon has actually got much
more of a overlap with us. The key primary
contact is the CMO, but they are into
managing loyalty for banks and hotels, et
cetera, but also building data, incorporating, inculcating first
party and second party data, managing data
relationships for clients, and then building
and engineering IDs. And interestingly,
if you were to ask about the importance of India,
India is a huge component part. And it’s not dissimilar
from your business here. You’ve got a front-of-office
operation, and our– just if I talk about
the media business. Since our current leadership
took over a year ago, we’ve probably
multiplied by 10 times. So we’ve got about 1,500
people in our media business, fueled particularly by
those local acquisitions. But we’ve got
something like 10 times that number sitting
predominantly in Saptient and Epsilon and
what we call our GDD, which is our global distribution
center for analytics, data sciences, which
I was with yesterday. And so Epsilon and
Sapient and the GDD together are real
competitive advantages. And again, I was here
yesterday with one of our key global
clients, really thinking how we can
leverage those capabilities. And I think as people
say concretely, are you really
making that journey into a platform company? And when I go and
visit that operation, I think it would
probably look quite similar to people from Google
in terms of the type of talent. We’re recruiting
the same talents. We’re competing in
the same job market. We can’t afford the
Google salaries, but we– SCOTT BEAUMONT: You think? STEVE KING: Or stock options. SCOTT BEAUMONT: Fingers crossed
the stock keeps on doing well. But happy to partner with you
on developing the pipeline of that talent coming through. Let’s talk a little
bit about India. Enormous online
connected community. One of the world’s
largest economies. Incredibly vibrant culture. Give us a little bit
of a flavor in terms of your global
portfolio, where it fits, and the importance
of India, perhaps. STEVE KING: Well, by market
dynamic, India, let’s just say in media terms, is
roughly about 10 billion US dollars of ad expenditure out
of a total of $600 billion. So it’s obviously not one of the
top three in terms of markets. For us, far and away the
biggest market in virtually all our categories is the US. And with the footprint
of Epsilon and Sapient, you can see how those
are its core markets. In the media, we’re
with virtually one in three of all media
dollars expended by US advertising agencies. So we have a huge
dominant market share. India, as I said, has
been, I think, definitely in the top three in terms
of our growth markets, the acquisitions we’ve
made, the type of clients we’ve gone into. Because we were a late
entrant, we very much piggybacked on the back of
that digital explosion, which we see very much continuing. Our business is growing
by about 30% per annum, will continue to grow at
that amount this year. I mentioned the number of
media employees, about 1,500. So it’s sort of doubling
every three years. And I know there’s a lot of
concern about the economy short term, I think
short-term cyclical trend. But for various
reasons, I think that we feel that our
business will continue to grow, certainly
for next year, at that same sort of
rent, largely because of the sort of expansion
of our services. Digital used to be very
narrow and, like media, used to be executional. It’s now much broader. But if you were to ask about
the importance of India, it’s our second biggest
market in terms of headcount. I talk about the
access to talent, and it’s a bit like your
operations in Hyderabad. It’s serving capabilities and
product design and development locally for a global market. And that’s exactly the
model we’re trying to build. And that reliance and
capability extension here is something that I think
is a competitive advantage. To access educated
talent in various areas that you can put
together as teams. Apart from the small
issue of time difference, there is no reason why
we’re not going to expand that as our business grows. And as we become less of an
executional business, much more of a data and technology
driven business, I think we’re going to be
relying on India much more, both from local business
growth and in terms of multi-market product
design and development. SCOTT BEAUMONT: Yeah, so that
sounds very similar, too. We were talking this morning
about some innovation that we developed for
India specifically, and that has a value
in its own right. But then that scales,
actually, to other countries around the world. Develop here because
of the ingenuity, because of the quality
of the computer science, and then work out a way
to scale it elsewhere. Very good. That was a lot of information
in a short space of time. Thank you very much for– STEVE KING: Thank
you, everybody. SCOTT BEAUMONT: –taking
us on that journey and giving us a
little bit of insight into this incredible
dual role you have. And the scope is fascinating. Please join me in thanking
Steve for his time today. Thank you. [APPLAUSE] STEVE KING: Thank you so much. SCOTT BEAUMONT: Thank you. STEVE KING: Pleasure. Thank you. [MUSIC PLAYING] MANASI SCOTT: Some
very key takeaways for all of us right there. Thank you for that wonderful
session, gentlemen. Talking about digital
transformation, there is nothing more inspiring
than seeing a truly made in India brand going global. For our next session, I’d
like to invite on the stage Aditya Ghosh, CEO
India and South Asia, OYO hotels and homes,
who will talk us through OYO’s journey of
leading digital with innovation. Ladies and gentlemen, please
give it up for Aditya Ghosh. [MUSIC PLAYING] ADITYA GHOSH: Hi. Good afternoon. My name is Aditya. I lead the oil business
in India and South Asia. So at OYO, we are all about
creating quality living spaces. Our founder, Ritesh, he
came up with this idea some years back,
not too far back. And when we saw that there is
this fragmented real estate market and this
inconsistent quality– and the only way to get
to really quality spaces if you want to
stay in a hotel was to forgo your next
EMI on your home or sell your arm and a leg. So that’s the
fundamental problem that we are trying to solve,
not just in India, but all around the world with
what we are doing at OYO. So growing up in
India, I remember as a kid that you would
get off a bus or a train or a flight in a strange
city, and the first person that you would end up
arguing with is the tout. And whoever is giving him that
extra 50 rupees, 100 rupees, he will take you to that hotel. At this moment in time, you
know that you are being cheated. It’s a question of how much. And that’s the only thing you’re
really bargaining against. And then, you get
lined up at this hotel, and depending on what
clothes you’re wearing or what bags you’re carrying
or whether you have kids with you or elderly parents,
the tariff of that hotel can go anywhere between
500 rupees to 5,000 rupees. And then you get
to that hotel room, and every family,
including mine, had a standard
operating procedure. So someone would go
lift the bed cover to see if the linen is clean. Somebody will go see
if the fan is working. Somebody will go and see
whether the television is on. And I’m going to date myself. I don’t know how many of
you are aware of something called an immersion rod. So you would check whether
the immersion rod is working or not. Many of you are too young
to remember what that is. It was an invitation to being
electrocuted, by the way, but anyway. So now, suppose you are
unhappy with that hotel room. You know what
you’re going to do? You’re going to go back and
argue with the same person who cheated you in the first place. So in the last six years,
what this red and white sign has done is that now, when
you land up in a strange city, you don’t have to ask anybody
where your hotel room is. You don’t have to
bargain with anybody to know what the tariff is. You know what are the five or
six things you’re going to get. You’re unhappy, you have a call
center, and you have discounts, and you have a remedy, and you
have someone to complain to. Certainly not the judge and
the jury being the same person. And for how much? For average, about the price
of three cups of coffee. It takes more for a couple
to go for a two-hour movie in a city like Delhi than
it takes for that couple to get a roof above their head
at an OYO hotel in most places around the country. That’s the fundamental problem
that we are trying to solve. That’s why technology
is so important to bring about a change
in people’s lives. So where we started
six years back, with one hotel in Gurgaon,
not too far from here, today we are 1 million
keys around the world, in 80 countries
around the world, and we have 23,000
hotels around the world. And by the way,
let me bust a myth. OYO is not an aggregator. It is not an e-commerce company. It is not a marketplace. We actually operate and run
those hotels and the quality and the pricing and
the revenue management, just like any other hotel
company that you would see. So back in March this year,
in less than six years, we became the seventh
largest branded hotel chain in the world. Good news, but I’ve
got some better news. In 90 days, we became the third
largest branded hotel chain in the world, and counting. So that’s because everybody,
we believe, Ritesh believes, everybody deserves a chic,
well-designed, consistent, safe, secure place
without having to spend an arm and a leg on it. So today, just to give
you a sense of scale, we are 19 times the size– in India, we’re
19 times the size of our nearest competitor, the
second largest player in India. And if you count all the
branded hotel chains in India and put them together, we’re
4 and 1/2 times the size of those hotel
groups put together. And we are less
than six years old. At OYO, we understand
that that also means that customers actually
react very, very differently. Now, before I get to the
whole bunch of brands we have and why we do, let’s think about
how traditional legacy hotel companies have gone
about their business and what makes us different. Traditional hotel companies
would go to a new city, and what they would
do is they would look for a good piece of land. And that’s rare, and there
are few and far between. So you go and buy
that piece of land. And then, to create the
efficiency of scale, you’ve got to build a
very, very large hotel on that piece of land. Now, you’ll remember,
you’re really far away from the center of the city. So you’ve got to make
it really, really fancy so that people can use
that as a destination. And you’ve got to drive
people 10 kilometers to come to that hotel. And therefore, you put a pool
and a spa and five restaurants. And before you know,
you created a bunch of efficiency, which
you’re going to pass on to the consumer,
and no wonder you’re paying 10,000 rupees a night. In all of this, hotel companies
forgot that one person. What are they called? Customers. So you know what we did? We said, you know what? We’re going to
take the customer, put that person in the center,
and build a whole business around it. So the customer needs to come
to an event at the Jawaharlal Nehru Stadium. We don’t want the customer
to drive 10 kilometers. We want the customer to stay
somewhere close by and not pay 10,000 rupees and
have a safe and secure, clean and hygienic,
affordable hotel room at a convenient location. That’s all we’re about. Those are the four
things that we are trying to do at all points of time. And then that allows
us to also understand that customers behave
very differently when they’re traveling for
different reasons. Unlike the business where I
came from before this, where we had one brand, when the guy
flies from Delhi to Bombay, he has a certain expectation. He wants to get there in two
hours, on time, with your bags, safely. But when that same
customer travels to Bombay and has to choose
a hotel, depending on whether you’re traveling
alone or with your kids or with your friends,
whether you’re traveling on work, whether
you’re traveling on holiday, whether you’re going to stay
there for a couple of days or they’re going to stay there
for five days or a month, you’re going to choose
different types of hotels. That same customer
behaves very differently and chooses different
types of hotels depending on his
reason to travel and who he is traveling with. And therefore, we see that as
an opportunity to create brands of sizable scale for each one
of these customer segments and needs, all the way from
our most affordable brands like spot on and OYO rooms up
to our millennial-focused brand like a collectional, to our
executive stays brand called Silver Keys, to our
business brand called Capital O, or a mid-scale brand
like OYO Townhouse, or even our holiday resorts
like Palette Resorts. And last night, literally
less than 24 hours back, our 700-room hotel
in Las Vegas just went up with the
new OYO signage. So we woke up to those images
this morning, which was great, which is awesome. Now, that basically means that
we cannot do this thing alone. We need partners who really
understand these needs of ours. Because our needs,
our priorities, are, one, to really
go deep in India. We are in over 500 cities today. We operate hotels in
over 500 cities today. It used to be 280 eight
months back in December. We added 300 cities in
the last eight months. And by the way, we are
a delivery company. We’re actually going out
there, building that hotel, transforming that hotel,
running that hotel. And the customer experience, we
own that customer experience. So we have to go into tier
two, tier three India. Second, we need to leverage
our own direct channels, because we want our customers to
experience what OYO really is. And we want guests, as we
are an early stage company, and we’re growing
really, really fast. We want millions of
Indians to get to know us. Now, that creates a
split personality at OYO. Actually, we have a two by two. We actually have a
two-by-two personality. On one hand, we’re a
tech-driven company at heart, but we’re a
hospitality business. On one hand, we’re a
six-year-old baby, but also the third largest in the world. And that’s something
that each one of us OYOpreneurs have to really
get comfortable with when we are conducting our business. And therefore, each
one of our partners really need to understand
these very unique needs of OYO. And that’s where
Google comes in. And the partner who
understood these various needs and came together with us
as one team was Google. I’ll give you three. The Google is clapping. Go ahead. Go for it. This is your moment. This is that marketing pitch. All right, then. I earned my bottle of water. So I’ll give you three examples
of how this works really well for us. So much like Asia, India
is a mobile-first nation. But actually, what
we’ve discovered is in a lot of cases, India is
actually a mobile-only nation. And the reason for that
is the number of customers who are coming in and
experiencing a product or service on the mobile for
the first time is on a mobile. Second, the prices have
crashed of a mobile phone. And the third,
the access charges of getting to mobile internet
has dramatically dropped, too. If you see the last
20 years, the number of subscribers of broadband
internet subscribers have kind have remained flat. But you look at the same
curve for mobile internet subscribers, and
it’s a hockey stick. So it’s very, very important
to have a very robust and very sharp mobile strategy. So here’s what we did. Well, first, we started
off with the usual. Well, not exactly the typical. We did not go start
spending big television ads and putting them in every
newspaper or every news channel. But we did the usual
progressive web app. We got 7 million unique
monthly visitors, and we saw a 2.2x rise
in our web conversion. But you know, we’re
a hungry company. We’re not happy with all
of this, so we need more. So we started
working with Google. And for the first time,
we took that next step to TWA, which is
Trusted Web Activity. So one of the
problems that we faced was that as we are
penetrating deep into India– or, for that matter,
penetrating deep into even the major cities– there are a lot of our customers
who are using low-end devices. And therefore, how do
you solve for that? And the last thing
I want is I want that customer to come to
my hotel and use my space, but in return, I’m
cluttering up all his space on his mobile phone. So how do I solve for that? So with this, we came
up with the OYO Lite app back in March 2019. And our size of our app reduced
90% from what it was earlier. What that has meant
is since March to now, in the last six months,
100,000 times people have downloaded
this OYO Lite app. What was 2.2x, we’ve now seen
a 2.5x increase in our user retention. And we have seen a 2.5x
increase in our conversion. And as a result, mobile
website traffic for us at OYO has gone up 10x in
the last two years. So you can really see how
this went out there and solved a real problem that
we were facing. But the good thing is also
that we got a shot in the arm. We got featured on
Google I/O, which was a great thing for
[INAUDIBLE] and [INAUDIBLE] and Pranav and the whole
team that runs this at OYO. So now that we’ve got
access to the consumer and we are in their phone and
we’re making it efficient, the next thing was,
how do I make sure that the payment and the
fulfillment becomes easier? So that’s where
Google Pay came in. So we integrated Google
Pay onto our app. What that has meant is our UPI
transactions have gone up 100%. Now, we firmly believe– I firmly believe– that
India is on this firm path to digitization of payments. And we could see that
dramatic improvement in how this Google Play
app started working for us. So today, 40% of all our
wallet and UPI transactions are happening on Google Pay. And it’s also meant a 34%– second bottle of water. It’s also meant
that there’s also been a 34% increase in
our unique OYO users. Now that we’ve got– we’re in your phone,
and we also made it easy for you to download
and pay, the next thing was, how do we make sure that
you’re coming to our hotel and not going to anyone else? So the problem set that we had
to solve for is one somebody searches on the search window
for a hotel, how to they, through the same
platform, get to our hotel and experience it straight away? That’s where we,
for the first time, integrated all our hotel
inventory onto the Google My Business platform. So today, Google My Business,
the largest hotel inventory in the country comes from OYO. Or for that matter,
as we go global, the largest hotel
inventory in the world soon will come from OYO. Now that has meant
that there has been a 5x increase in traffic,
a 5x increase in bookings, and the good news– a
7x increase in revenue. But what an interesting
learning was, and this is India, that as we did this and
people started accessing it, our call center traffic
suddenly started spiking. And we first couldn’t
understand what was going on. And then we soon realized
that’s because we were on GMB. So instead of
stopping at digital, we said, you know what? This is India, so you have to
have an omnichannel presence and approach. So we quickly ramped up
our call center capability to double of what it was in
a matter of six weeks just to get that traffic. So the ability to get
traffic and get business just exponentially increases and
makes it more efficient. Now, talking about efficiency,
as some of you know, I originally come from a very
thin margin business, right? There have been books
and quotes written about how you started
off as a billionaire and you became a
millionaire because you were in the business
that I used to be in. So I’m not the big
guy on spending money on large television ads. So if I’m going to spend
money on advertisement, it has to be to
the right customer at the right place
at the right cost. At the same time, because we
are an early stage company and we are out there
growing at this pace, we wanted to put our product
proposition and our service proposition out to
the real customer. So we came up with
a video, but then that brand campaign had to
go to the right customer. Now, I’m going to show you
that that brand campaign in just a bit. But what it did was because of
the work we did with Google, it got 10 million views
and 21 million unique reach in a matter of three days. And first, you’ll see the
video, and then you I’ll tell you why this was
one of the things we stand for is being
safe and secure. And as we go about
building these hotels, that’s going to be one
of our core promises, and we had to get it out. But this allowed
us to get it out to the right audience at the
right place at the right cost. Now, in India, as
Vikas was saying earlier in the afternoon, there
are 460 million online users. But only half of them
are in urban areas, which is great news for us. But that’s where the
opportunity, as well as the challenge, lies. So having that ability
to spend on digital is extremely important. Having a clear strategy
is extremely important. Having that
outcome-based approach is extremely important. And because of what
we’ve done, we’ve gladly spend 3 and 1/2 times of
what we were spending earlier on just our digital marketing,
which is twice the industry benchmark. But clearly, as you can see from
the last three little episodes that I showed you,
it’s working for us. Now, as we set out to
grow up to our next level, what’s our dream? Our dream is to make sure
that we create not just quality living spaces, but we
create the first truly global brand out of India. India is a 5,000-year-old
civilization, but we do not have one single
brand out of India that you can see in 50, 60 countries
wide, 40, 50 cities deep. You can go to any kirana
shop in any village in India and you’ll find a
Swiss chocolate. But you cannot find an Indian
brand on a corner store or on every street
across 80 countries, across 40 cities deep. That’s the mission and
that’s the dream that fires up all us OYOpreneurs. It is more than
being a tech company. It’s more than being a
hospitality business. It’s about realizing
our true potential. And that’s where we think that
we need deep partnerships. We need deep
partnerships with people who understand that
mission, who really believe what we are believing
in and work really well for us. With Google, a couple
of the new next things that we are going
to do, for instance, is we’re going to integrate
our booking platform and our booking engine
into the Google Pay so that you can search,
pay, book everything seamlessly on one platform. I was looking at some
research by KPMG and Google sometime back, and it said
that in the next two years, 9 out of 10 internet
users in India will be using the internet
in their local language. So we are big on vernacular. So we just started
our Hindi app, but we are definitely going
to act much more to make sure that we stay relevant to
everyone who comes and stays with us. Today, about half a million
people around the world are resting their heads on
OYO pillows every day, right? And that’s a huge
responsibility for us. But as we say, it’s
day zero at OYO, and it’s day zero
without partnership, too. And I thank you for
the opportunity, for giving me this opportunity
to share this dream with you. I hope all of us will make
you really, really proud. Thank you. [APPLAUSE] [MUSIC PLAYING] MANASI SCOTT: Thank you, Aditya. We wish you the absolute
best in your pursuit to become the world’s
largest hospitality chain. Ladies and gentlemen, time
to spruce up the stage with some creative
juices flowing, sprinkled with a little bit
of flavor of machine learning. Please welcome onto
stage our next speaker– I love that clapping before
I’ve even announced it. Come on, we can keep it going. [MUSIC PLAYING] Yeah, that’s the spirit. Welcome our next
speaker, Kim Larson, Managing Director of Global
Creative Services at Google, who will unveil
the perfect recipe for a great ad powered by the
magic of machine learning. Welcome, Kim. KIM LARSON: Thank you. Thank you. Good afternoon, everyone. It’s a pleasure to be here. I got a very easy brief. The brief was, come talk
about the future of creativity and the impact that machine
learning is going to have on our industry. That’s easy. We’ll be done in a few minutes. Let’s hold on. So I want to start with
some consumer context. So today, 24% of the global
population are millennials. Now, this is the group
that we, as marketers, have tried really hard to
understand, be relevant to, talk to in the right tone. Well, that’s
fundamentally going to get and even more important job and
change over the next few years. So fast-forward
five years from now. By 2025, millennials will
be 70% of India’s population or younger– 70%. That’s even slightly higher
than the global average, which is 68%. So let that sink in for a while. Think about that. These are digital natives. This is what they grew up with. They fundamentally consume media
differently than you and I. And so the imperative is that
they absolutely– they demand a very different approach. So what does this
mean for advertising? The good news is
the job to be done, as we talk about in our
industry, it’s still the same. Number one, great ads
have to capture attention, and that’s getting harder
and harder every day. Number two, they
have to drive action. They’ve got to result in
some action for you and me, for us, to drive the businesses
that we need to drive. So that’s where the
change comes in. Behind me, I have what
I call the recipe. And this is the
recipe that we’ve all followed for years and years– the very linear traditional way
that we went about making apps. You start with an insight,
and a really good insight can actually become a
springboard to an idea. That idea gets rigorous
production applied against it. And then afterwards, you
apply the media, you ship it, and there you’ve got
a stellar advert. That’s not how it works anymore. The recipe has changed
pretty dramatically. And in a way, it’s
super exciting, because of what we can do now. So with the advent of the
cloud and the computing power we have there coupled
with the techniques we now have around machine learning,
this is super exciting. We can now do things
that fundamentally change three parts of that equation. It changes the way
we approach insights, it changes the way we
approach production, and it changes the
way we approach media. So let’s give a couple examples
and roll up our sleeves a little bit. Let’s start with insights. So today, insights,
they’re fundamentally dependent upon two things. Number one, your
ability to access quality data, the quality of
the data that you’re sitting on. The second, and
more importantly, is your ability to ask the
right questions of that data. And that’s really
really, really hard. Because oftentimes, as
marketers, we don’t always know what we’re looking for. So here’s the good news. There is an enormous amount
of burn and churn data crunching that happens to
mine through all this data that’s incredibly inefficient. And that grunt work can actually
be done more efficiently by machines going forward. And machines are really good
at this, because they’re good at identifying patterns. They’re good at finding
outliers, figuring out what’s off trend and
out of the ordinary. And that’s usually where we find
the germ of a really good idea. So let’s take an example here. And I say machine learning
can help us really push from interesting to insightful. So behind me, this
was a brief that came to us from an
FMCG snack brand that you’re all
very familiar with. And the brief was, help
us understand how consumer snacking behavior has changed. OK? Got it. So normally, we
would start this, and we’d start looking at
keywords and keyword searches. One of the keywords
that they gave us was “chocolate cake keto.” So it’s a bit of an oxymoron,
but that’s already started. And typically, what we would
do is we deliver you a graph, just like the one behind you. We’d isolate a period of time. We’d look at that
trend line, and we’d see a trend line that
looks like on the right. So it’s kind of interesting,
but it’s not at all insightful. Because as a
marketer, I actually don’t know what to do with that. So let’s apply some
machine learning to that. This next graph
that you see, what if we could take all
Indian snack queries over the period of a year? What if we could take all those
and plot them against points of day, points in time? It’s pretty interesting, but
not necessarily unpredictable. You see there is a spike round
about now, 4 o’clock, when snack queries start really,
really, really peaking. And that’s somewhat
more insightful, because as a
marketer, I can start to think about how I
might action against that. OK, how do we take it one
level deeper on the next slide? Now this is really insightful. So what we did is we were able
to segment these snack queries. We were able to
segment out what I would call the mindful
snacking or more of those healthy
snacking types of queries and plot them against time. And then look at the
indulgent, the impulsive, the sort of sweet
treat snacking keywords and plot those against time. And what you see are two
vastly, vastly different curves. Now that is insightful,
because that’s something– as a marketer, I
can do something with this. I can figure out which
products to offer. I can better offer them at
certain times of the day. And I can even start
to think about who I might target these to. So there. So that’s one big– one big [INAUDIBLE]. Now let’s look at the
other side of the equation. Let’s talk about
production and media. So there’s a lot of pain
points that we hear from you. We hear from you all the time. And the good news is,
just like insights, machines can help take out
a lot of the grunt work that it takes
today to build ads. So one of the
questions we often get is around how do we
minimize production costs, particularly as everyone is
pushing into short-form video. So this is an example
from HDFC Bank. It was for the recent
World Cup custom offer. And we started with
a display asset. So on the left-hand side,
that’s a standard display asset. What we were able
to do, though, is we were able to animate
that, add voiceover, add call to action, and essentially
create a short-form video out of a display asset. So let’s take a look. [VIDEO PLAYBACK] – Score runs on your
every spend using HDFC Bank credit card and
win a free holiday to England for two. Only few days left. Shop more to score more now. [END PLAYBACK] KIM LARSON: So this campaign
performed really, really well. It had a best-in-class
ad recall lift. And the lesson here is
that you don’t necessarily have to go shoot every
single ad that you need. There was no new footage
that was shot for this. This completely happened
in the background. And hopefully, that
will save you time. That will save you money. And you can think about
that as a potential savings. Another question, and
I’d say this is probably the question I get first and
foremost from every marketer and agency that we work with– how much personalization
do I need? How many ads do I need to
reach a really diverse array of customers in a crazy market,
crazy diverse market like this? So this is an ad. It was for Cadbury Fuse. It was here in the market. The campaign was called
Don’t Go Too Far For Hunger. And what we can do is as long
as we understand your targets, we can actually automate
the multiplication of these ads against targets. We can add graphics. We can change the
call to action. And this all happens through
a back-end content management system that your intelligence,
your agency intelligence– we power that to create
the huge variety of ads. Now this example is
particularly extreme. They created 92,000
versions of this ad– 92,000. 92,000. We could not do that as humans. We couldn’t afford to do that. We couldn’t take
the time to do that. And what’s important
to understand is the hypotheses when we run
this is that we’re not actually sure which ads are going
to perform the best, and that’s OK. But we work closely
with you and your media agency to optimize
like crazy on the go so that we’re putting money
behind the best performing ones and we’re pulling
money out of the ones that don’t perform as well. So, again, tremendous
results for this. As I said, 92,000 pieces of
dynamic, creative work created. The production and creative
agency estimated that about 99% of time was saved and
cost saved on this. Most importantly, it performed. It had 2x the increase
in ad recall and 3x in favorability over
previous display campaigns. Now that tells you
personalization works. So, you ask– I ignored the elephant in
the room, and that’s ideas. What about ideas? How important are they
in this ecosystem? You guys, they are critically,
critically important. Great ideas are always going to
be effectiveness multipliers. That’s never going to change. I think what’s more
exciting is now we have the tools to really
amplify and accelerate those best ideas. And so we’ve asked ourselves
a couple of questions. What will machines be
able to do in the future? And hypothesize around this. And I’ll tell you for all of
you agency folks out there, you do not need to worry. Think about what you do best. So could machine learning
take the seedlings, the germ of an idea, and often
make that big mental leap that it takes to
get to that idea? No. No time soon. Are they going to
be able to create a story arc and
that anticipation, that unexpected surprise? No, they’re not going
to be able to do that. And finally, are they going
to be able to take the– create that emotional connection
that you know and you feel when you see a really good ad? And no, they’re not going
to be able to do that. So there’s business for
all of us for a long time. I want to show you one. I’ve had so much
fun immersing myself in the ads of this market. They are some of the most
humorous and engaging ads I’ve seen around the world. This is a favorite,
from Fevikwik. And I can’t imagine how
a machine would ever come up with this. Take a look. [VIDEO PLAYBACK] – Mommy? [INAUDIBLE] [NON-ENGLISH SPEECH] [MUSIC PLAYING] – Purse, sunglasses,
earring, bag, sandals. [INAUDIBLE] [NON-ENGLISH SPEECH] – Oh, no. – Oh, yes. [MUSIC PLAYING] [NON-ENGLISH SPEECH] [END PLAYBACK] KIM LARSON: I had my friends
translate that for me, and it was super fun. So what can you do when
you go back to the office? That’s most important. We’re all here to
drive the business. So first, I would just ask you
to think about this recipe. I’d surmise that this might be a
step or a leap for some of you, but I want to assure you
that you are not alone. Everybody feels this way,
and we’re absolutely in this together. More practically, I
would say three things. You’ve got to sort through
the data that you have. You’ve got to
figure out, identify those gaps in consumer
understanding, and then look for areas– think about I call the
low level kinds of tasks that you and your
teams are doing and look for
opportunities to automate. That’s super critical. The second thing is once you’ve
got those gaps in your consumer understanding and
your learning agenda, and I can’t stress this enough,
you’ve got to set a test and learn program. You’ve got to, got to do that. And we are committed– I mean, we will share best
practices all day long, but you have to practice. You’ve got to learn. This is new muscle
memory for all of us, and it takes practice. So commit to
ruthlessly prioritizing and make sure you learn
something new with absolutely every campaign you launch. Finally, you’ve
got to lean on us. We’re your partners. We’re here with you with this. It will be a wild journey. And I thank you. [APPLAUSE] [MUSIC PLAYING] MANASI SCOTT: Thank you, Kim. Those ideas can truly change the
game of creative storytelling. Talking about game
changers, up next, we have one of the world’s
most progressive FMCG brands who are re-imagining
the beauty industry by simply going digital first. Without further
ado, I would like to call onto stage Amit Jain,
Managing Director for L’Oreal India, to share his brand
story of digital evolution. And sit tight because
right after Amit Jain, we have a special
surprise coming for you. Please welcome onto
stage Amit Jain. AMIT JAIN: Thank you. Good afternoon,
Googlers, Nooglers. I just learned about Zooglers. Clients, partners, this is
truly an awesome get together. I missed Kim’s talk, but
I did catch Aditya’s. And that was so
inspiring for me, Aditya. Six-year-old brand was number
seven, went up to number three in 90 days. Give me a break. How do you guys do it? Well, I’m a huge
fan, personally, and I’m sure I speak for
the rest of the audience, that we are truly proud
of what OYO and the team are achieving on putting
India on the brand map. [APPLAUSE] Well, I’m here to share
a very different story– that of a 100-year-old
company, which has now got among the best
brands globally in beauty and is trying to reinvent itself
in the face of the changing consumer. Globally, L’Oreal is $30
billion pure beauty player, which is among the fastest
growing CPGs in the world. Last year was 7.2% globally. So it’s pretty much adding
more than $2 billion a year to itself, $400 million
in free cash flows. But these are numbers,
and numbers are odious. What is really important
for us is in L’Oreal, we like to think like a startup. And one of our credos is
rethink, relearn, and redo. And that’s pretty much
going to be a theme of what I’ll be talking about later. However, first, just to
go into the environment. The fast-evolving
beauty consumer today is moving really fast. Fortunately for us, beauty and
digital are a perfect match. Beauty is very visual. It’s socially shareable,
and it thrives on all those wonderful
platforms which are out there. There are more than 350
million smartphones in India. If I were to look at
smartphone penetration here, my guess is 140%. But what does it do? It spawns a completely
different behavior. The smartphone has great
visuals, HD screens, allows the user to get their
personal sense of beauty. And guess what? It also has a camera on the
other side of the screen. Or is it three? So this means the consumer,
at any point of time, has to be selfie ready and
look great all the while. Who knows when the next selfie
moment is going to come? So it follows that we believe
that tomorrow’s beauty will be tech beauty. And we at L’Oreal have
decided to become the pioneers in this new beauty tech world. As we rethink and
redo, the early results of this mission of ours have
been fairly encouraging. Let’s take a look. Whoa. Some of those numbers are
moving fairly quickly. But once again, a major pivot
is what’s behind the numbers. And I think the
biggest pivot for us has been clear commitments. Over the last few years
now, more than 47% of our investments
in media globally have gone into digital
media, and 70% of that is programmatic, driving up
engagement with our consumers, taking a global e-commerce
revenue up to 12% of total. And this is just the
tip of the iceberg, because what lies beneath
is really fascinating. Let me explain. So this is complete sci-fi. Personally, it took me
a while to understand what this visual is doing
in a digital presentation. But like any other
industrial revolution, digital transformation required
us to scale up our production through digital factories– website factories,
e-commerce factories for great consumer
experience, data factories, where we’re crawling up
to more than 50,000 data sources in real time to optimize
our business performance. Content factories but
more than a million pieces of unique digital content
being created every year. And that is what is
really helping us optimize our business performance. However, like any
other investment, it means putting productivity
and return on investment at the heart of everything we
do, digitally or otherwise. Data and AI are being used to
optimize and automate processes from insight mining,
demand forecasting, media buying, and pretty much
all things digital. You know, the stats
are on the screen. The most important part of
the digital transformation which L’Oreal is
trying to go through is talent, expertise,
and new ways of working. This requires
serious commitment. We have had to restructure. We have had to make
very difficult choices. We have had to reduce
our investments in traditional channels
and traditional media. And it’s created, of course, a
fair amount of pain catharsis within the organization. But you know what? There are no free lunches. So a bold vision
requires bold commitment and difficult decisions, because
in digital, to paraphrase, execution eats strategy
for breakfast any day. But so much for big gun. Let’s take a look
as to how we are executing this
strategy for ourselves here in L’Oreal India. Well, in India,
we are relatively late to the party as L’Oreal. I like to say we are 25 years
young by FMCG standards, where we’ve got a lot of our peers
who are more than 100 years old in the country. And that means we
are pretty much challengers in most of
the beauty categories which we operate in. The good news is that some
of our agency partners here now tell us
that recently, we’ve become the clear number two in
all the beauty categories which we operate in. But we aren’t going to
take the credit for this. This has been catalyzed
by the rapidly evolving Indian consumer, who’s
far more digitally mature. It offers a whole new level
of consumer recruitment. And as of today,
digital very recently has become the number one growth
driver for L’Oreal in India. I was told that
FMCG and digital, they don’t quite get together. You guys are old world. Your are old brands,
old way of doing things. But I believe the
one thing which is making a real
difference for us in India is around culture and mindset– the mindset of a startup. Those are the guys
we are up against. So L’Oreal in India has
advantages and disadvantages which come from being a
very large-scale enterprise and a global player. We’ve got processes. We’ve got authorizations. We’ve got hierarchies
and all the lovely stuff which comes out of being a
part of a big multinational. And I’m sure a lot of you can
relate to what I’m saying, but the challenge
for us has been, how do we re-gear
ourselves to compete with those agile,
nimble-footed startups? You are so stellar example. Thank god OYO is not
in the beauty business. We’d be toast. So we kicked off a
change program which was simply called Simplicity. And the idea was to build
the spirit of a startup, despite all the advantages
of a global multinational. So this didn’t come for free. Extensive Simplicity training–
so a lot of my colleagues were sitting over
here initially. When they were asked to report
for Simplicity training, they went, are you joking? But then we had to understand
what Simplicity meant. How do we improve
our ways of working? How do we improve the work
life of our colleagues? And very, very important– give them the feeling
that they indeed had the entrepreneurial
energy and empowerment to do what is right. So just to give
you a few example– teams are no longer a part
of functions, divisions, and whatever other
moniker you want. Teams are around projects. They’re around opportunities. They very quickly come
together around an opportunity. They are typically
cross-functional in character. They meet their
goals, and then they disassemble to regroup around
the [INAUDIBLE] opportunity. Well, at least, that’s the
plan, and we’re just beginning to take the first baby steps. Are we a best practice there? Not as yet. But as I speak to
you, hopefully you’ll pick up a few nuggets of what
we believe is working for us. Empowerment is
something which we have sought to put in
place through something which is very well acknowledged
within the world of L’Oreal. We call it freedom
within a frame. Very simply, a frame around
revenue, margins, costs, take a few KPIs, some
basic principles, agree those with a
team, and then the team is free to operate with
speed within the frame and behave truly
like an entrepreneur. And get out there to
take on our very, very formidable competitors. Consumer satisfaction
reviews and ratings are the new success ratings. And the teams are
rapidly adapting around customer
feedback to make sure that the customers are the
ultimate and the only judge for success within L’Oreal. Test and learn– this is
an age-old L’Oreal credo, which we have happily adapted
for ourselves in India. It allows us to make a
series of small mistakes and rapidly and
consistently course correct. It’s OK to fail, but they
need to be small mistakes. Very importantly, every time,
we should be learning and course correcting all the time. And we bring this credo to life
through three basic concepts– seize, create, and innovate. At L’Oreal, our
strategic intent has been to seize what’s starting. Grab a trend out
there in the market and make sure you are
first to the party and ride it really hard. Let me share with you an
example of a very, very stable and a mature business
and what they did. L’Oreal Professional
is a business we are very, very proud of. Being slightly
immodest, I’d like to claim joint
credit of the fact that L’Oreal Professional
are brands like Matrix, L’Oreal, Kerastase. They have jointly created
the Salon Channel. These were beauty parlors
10, 15 years back. There’s been incredible
work which has been done in creating this channel. And around that, district-wise,
fundamental change in consumer behavior. The Indian consumer,
who in pretty much most categories is DIY
happy, was very happy doing the [INAUDIBLE] and
the [INAUDIBLE] at home. And suddenly asking
them to invest out there in professional beauty services
is a big leap of faith. And that is what our
digital marketing investment is trying to drive. This is leading
to a rising trend of consumers who are
searching for salons near me. And that’s why it’s imperative
for us at L’Oreal Professional to help connect the consumer
with the salon partners. To seize this opportunity, we
extended our digital marketing through a call to action that
showed the nearest salon. Simple stuff. You do it all the
time with Zomato. Provide an option to call and
book an appointment online. That’s important. And measure the
footfalls at the salon. Simple stuff. Making it happen is something
that gave us a lot of pride. So we’ve got a pilot in
place in Mumbai and Bangalore with our key salon customers. And this has resulted in
almost 8x the conversions which we would have had otherwise. And now, of course,
our partners would like to scale it up for the future. In fact, as I look around, I
see some very interesting hair colors. Yeah, I see a brown, a burgundy. This is really cool stuff. And my guess is some of you
might have gone for the L’Oreal salon locator recently. More power to you. Well, we just heard Kim
talk about machine learning and the future of creativity. Let’s see how we at
L’Oreal have tried to do our own little
creative urge around that. So if content is important,
today with the millennial, context is even more important. Personalization is the key
to drive deeper engagement with our brands. Over the years in
India, once again, taking a hair color
example, hair color has traditionally been
around gray coverage– dull, boring black. Yeah? But as L’Oreal goes about
its mission of sharing beauty with all, the challenge is to
engage with the millennials and have them colorful color
and not colorful coverage. Once again, big leap. And our friends in
Garnier Color Naturals, which is a leading
hair color brand, decided to go much beyond
demographic targeting and speak to each
of the consumers in a manner that was
relevant to them. It was important to do
this in a scalable and cost optimized fashion, which is
sustainable over a period of time. It is really interesting
how millennials today can be discovered and targeted
through various digital footprints and interests. Google helped us customize
Garnier Color Naturals campaign at a scale using machine
learning and automation. You can see the
numbers over there. With four personalized video
ads, along with Google, now we could create more than
one lakh display creators which were relevant to the
L’Oreal and Garnier consumers. The campaign moved the
color spectrum of browns by more than 25%, which
in consumer behavior terms is staggering for those of us
who have been in this business for a long time. Right now, the
results still roll in. This is happening out
there as we speak. Moving on to another
theme of test and learn, which is
around innovation. Innovation in beauty
tech almost always requires a partner
ecosystem, which brings in complementary capabilities. And innovation as
an ecosystem means scouting for the best startups,
the best technologies, the best entrepreneurs
out there who are changing the face
of the beauty industry and are partnering
with us to co-create the future of beauty tech. And because we at
L’Oreal believe in AR/AI as the future of
beauty experience, we recently acquired a company
called ModiFace out of Canada, who are the historical leader
in the AR and AI beauty tech business. This is right now,
as we speak, being piloted in collaboration
with our e-commerce partners here in India. And they tell us that there
is a lot of consumer interest. In fact, they’re beginning
to call it [? MoodyFace. ?] So now there’s pressure to
look at a beard grooming app, as well. But in all honesty,
all jokes aside, the results are
mixed to start with. But that is the essence
of test and learn. I’ve been assured
by our teams that we are going to get it right. And in the next few
weeks, our consumers are going to have a great
try-on experience online. Keeping with the same theme, in
another week, those will see– those of you who are
interested, of course– L’Oreal Paris Rouge Signature
lipstick, an ad on YouTube. You’ll have the opportunity
to test the virtual try-on on YouTube. So be sure you’re
looking pretty when you’re taking your pictures. Once you try it on,
and you can play around with different
shapes, which help you suit your style and your
personal style of beauty. So with our friends in Google,
we are doing some fun stuff. We are looking forward to your
reviews and some great ratings. [APPLAUSE] Well, thinking about
what lies ahead. It’s important that
we never forget that digital transformation
is a never-ending story, and it’s playing in
fast-forward mode. As a pioneer in
beauty, L’Oreal is actively exploring
new advanced domains, ranging from smart
meters, visual search, augmented reality,
wearables, connected device. There’s funky stuff
like [? formula ?] personalization, mini production
factories, second skin technologies. The list is endless. We are pretty much there
on every hot topic. However, having made these
futuristic predictions, the reality is how we,
at L’Oreal in India, think about our role in
the beauty tech space. In all humility, we at
L’Oreal think of ourselves as the poet and
the peasant, where we are building a
vision for the future with our head in the clouds. And our feet are anchored
firmly on the ground building the foundation of a beauty tech
company focused on creating value for the Indian consumers. In this journey, we
are always looking for the right talent
and the right partners to build L’Oreal for India. Thank you. [APPLAUSE] [MUSIC PLAYING] I’d just like to take this
opportunity of acknowledging our wonderful team. L’Oreal, can you get
up and take a bow? These are the magnificent men
and women who made it happen. Congratulations. Thanks. MANASI SCOTT: Thank
you so much, Amit, for that thoughtful keynote. As we move forward in this
journey from traditional to modern, an alternative
mainstream has finally emerged. Just like the rules
of advertising are being redefined, music has
also seen a paradigm shift. To bring this eventful
day to a close, we are very excited
to present to you the best from the worlds of both
traditional and modern music, right here on the stage
at #GoogleForIndia 2019. This is a trial that we
put together especially for all of you to
this afternoon. The Vianch, number
one out of the three, started beatboxing at the age of
13 and has never stopped since. With over nine
years of experience, he has honed his style
and technique over time, and then went on
to occupy a spot in the top beatboxers of India. His unique sound resonates the
region that he belongs to– Jaipur, Rajasthan. He now imitates instruments
and adds his own twist of folk music in a
mesmerizing amalgamation that remains unparalleled. He has truly revolutionized
the face of Indian beatboxing with his mix of regional
and modern sound. No stranger to us, the
incredible Mame Khan is also known as the signature
folk voice of Rajasthan and has taken an ancient musical
legacy from the Golden Thar Desert to the
screens of Bollywood and to more than
60-plus countries worldwide, celebrating
the finest folk fusion with the 21st century audience. Mame Khan belongs to a
family of master singers, who perform a unique oral
tradition, which is more than 15 generations old. And the third of
our superstars– no strangers to Delhi,
the new Delhi-based duo of Gaurav Raina and
Tapan Raj, a.k.a. the MIDIval Punditz, are
known as the Chemical Brothers of India. For more than 18
years, their pulsing, driving electronica
has pulled off an eclectic variety of sources
from across the planet. With sturdy roots
in the DJ culture, on Light, Six Degrees Records,
their fourth full-length studio album that they’ve
created, they’ve put out their first
performance-based concept record, rooted as
much in Western rock as the diverse folk
traditions of India. Ladies and gentlemen, as
I said, our finale act has been specially curated
for all of you this afternoon. Please give it up
for our folk maestro Mame Khan, our YouTube
superstar and beatboxer DVK, and the magicians of
music, the MIDIval Punditz. [MUSIC PLAYING] SPEAKER 1: All right,
make some noise for DVK, Mame Khan G.
[INAUDIBLE] on flute. Thank you for having us. MANASI SCOTT: Ladies
and gentlemen, one more round of applause
for DVK, Mame Khan, and, of course, MIDIval Punditz. What a perfect
ending to this day. You didn’t expect that, did you? Thank you, everyone. And from all of us
at Google, thank you for being here at
#GoogleForIndia 2019. I do hope you had a
great time and are taking back some key learnings
along with your teams today. I would request you all to
provide your valuable feedback to us on the pods
placed right outside of the pre-function area. And also join us for high tea. On behalf of Google,
until next time, Manasi Scott wishing you all
a very good evening ahead. Thank you. Bye-bye.

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