Glopal Clips

Going International

Written by Fitch Richardson | Oct 9, 2024 10:00:45 PM

 

Automated transcript:

And launch conversion campaigns to start their consideration audience.  The thing is they never start their engagement and consideration campaign, not a brand awareness campaign.  Why?  Because they have to either accept to lower their growth as we've seen it. If they want to launch those campaigns, their growth will decrease.

Or they have to give up further growth because they will never start investing on engagement and brand awareness campaign. They will never be able to get additional revenue.  And the question is, when shall I start to invest in those consideration campaigns?  The other challenges I've been emergence faced, uh, experiencing seasonality.

If we take an example of Arc Swimwear, which is a recent Global's client.  This is an Australian brand that sells swimwear, as their name mentioned. And what happened is, this is what their audience, or their target audience, looks like during summer.  But during winter, the yellow circle is much much thinner.

Because obviously, people are not considering buying swimwear during winter.  But the thing is, this will lead to, even if they continue to spend regularly during the years, their revenue during summer will be high and their revenue during winter will be low. And this will be true summer after summer and winter after winter.

The issue is their rows will do the same thing. So sometimes when your rows decrease, it doesn't mean that your campaign don't work. It only means that you are suffering from seasonality effects.  So  I mentioned earlier that I would give you solutions that my previous client found. And. The most important one is going international because this has two really important impacts.

The first impact is it will help you break through your roles barrier. Because obviously  if we, if you shift from a local mindset where your target audience looks similar to this one, to a global perspective, you will add new countries. So South Korea and Saudi Arabia. So those audience. will add up. So instead of having just one small audiences of converted clients and consider consideration audiences, you will get a much, much bigger audience size.

The structure will keep the same, but the size of each segment will drastically increase.  We will see how this impacted Urban Armor Gear, which is also a global client.  So on the left hand side, we will focus on the U. S., which is their domestic market. And on the right hand side, we will focus on their international campaign. 

So they started by spending money, investing money on their ad. They get some impression, as we've already seen it.  They reach a certain number of people and their revenue increase. But, on their domestic market,  They reached the audience saturation point. What happened then is that they were continuing to spend.

They were continuing to buy impressions, but their reach plateaued. Their revenue plateaued as well.  As soon as they have opened new markets, because the size of those audiences were much bigger, at the exact same moment where they faced the audience saturation point in their domestic market, they were able to continue to spend in other countries. 

So they were able to continue to buy impressions. To reach new people and so their revenue continue to grow and this  has impacted dramatically their growth because on the left hand side their growth decreased from this point whereas on the left hand side they were able to stabilize this growth over time which helped them to continue their marketing effort with a good growth. 

The other good effect of going international is that it can solve seasonality challenges. If we take again the example of arc swimwear,  this is true for Australia.  But because of the tilt of the earth's axis and its orbit around the sun, the seasons are opposite in the northern and southern hemispheres. 

So this is why when it's summer in Australia, it's winter in France. So basically, adding a new country, so switching from a local mindset to a global mindset, added Another seasonality effect,  and by opening a third and fourth and fifth and so on countries, they were able to smooth the seasonality effects. 

So do their growth. So what's true about traditional seasons for Arc Swimwear is also true for many other event driving seasonality effects. It's true for new product or collection launches. As an example, in the fashion industry, in the beauty industry, or in the technology industry. Uh, Apple launched its iPhones in September, and, and so on.

So they have a peak of sales at this time of the year.  The promotion and commercial events as well. You have Black Friday and Cyber Monday, which are really strong in the UK and US. You have Singles Day in China, and the sales period that change from one country to another.  You have specific events and holidays that, such as Christmas or Valentine's Day, Mother's, Father's Day, or Eid in the Arabic countries. 

You have also the natural trends and the marketing buzz if one of your campaigns go viral in one country Or if you are launching some influential marketing campaigns in other countries and so on so this applies to any Seasonality effect so going international could have a lot of