To help us understand the benefits of using sound in the marketing mix, we hear from Emiliano Ramos of The Sound Agency.

Q: Tell us about The Sound Agency – what do you do; who are your clients?

A: The Sound Agency is the world’s first full-service business sound consultancy, based on a unique, proprietary model of the ways in which sound affects human beings.  We help our clients make sound that is congruent and consistent, whether it is at point of sale, in marketing communications, soundscapes in shops, showrooms and other branded spaces.

Our chairman, Julian Treasure, is the world’s leading authority on the use of sound in business, having had four global TED talks, all about sound.  Amongst our clients are Harrods, BAA, Honda, Nokia, BBC, Coca-Cola, Waldorf Astoria, Intercontinental Hotels, Lancaster City (California), Bank Muscat, BP, Sonae Sierra, Intu Properties and mfi.

The main benefits we achieve for our clients are improved customer experience, enhanced brand awareness and increased profits.  We have now been unleashing the power of sound for global brands, hotels, retailers and other commercial spaces for almost a decade.

Q: Most place marketing to attract companies to a location is visual in nature – comprising a mix of text, data, pictures.  With the increasing use of on-line media such as videos, sound is now a potential feature for this mix.  Can you tell us what sound branding is and how it can be useful for marketing?

A: Sound branding, as defined by the Audio Branding Academy, aims at building solidly a brand sound that represents the identity and values of a brand in a distinctive manner.  With all the means of communication available nowadays, there is a wealth of possibilities for brands to connect with their customers using sound.

Increasingly more brands are becoming aware of the importance of the auditory component of their marketing communications.  No matter what your activities are, your brand is making sound and if you are not giving it the attention it deserves, you are probably shooting yourself in the foot.

Research undertaken by Professor Charles Spence from the University of Oxford shows that congruent sound can enhance the power of visual communication by over 1,100%.  Accordingly, if sound is accidental and incongruent, it can reduce the impact by up to 86%.

Q: Can you give us some examples of good sound branding, and tell us why they are good?

A: In terms of brand awareness, Intel Inside is one of the most successful stories in sound branding.  Computer processors are something few of us have seen and Intel had little to show in advertising.  The creation of a sonic logo was the answer and gave the brand worldwide recognition.

Interestingly enough, whereas it cost Intel hundreds of millions of pounds through the years to reach sound awareness, Nokia did the same with little investment – the Nokia tune is played by the brand’s phones billions of times a day around the world.

Abercrombie and Fitch is another great example of a brand consciously using sound to achieve their goals.  Their branches blast loud, carefully chosen music aimed at a young audience, creating an atmosphere that attracts their target audience and purposely keeps older people away.

The world’s leading car manufacturers invest millions in producing and tailoring each and every sound their cars make – both electronic and mechanical.  And it pays off.  Martin Lindstrom, owner of the BrandSense agency, a partner of ours, attests in his BrandSense book that 44% of Bentley consumers point to sound as the primary factor in their choice of brand.

This will not be news for anyone, but many brands seem to forget it on the way – a satisfied customer spends more.  BAA Glasgow Airport requested our services to reduce passengers’ stress levels.  Our research showed that, as in many commercial spaces, music wasn’t the best option to reach their objectives, so we created beautiful soothing soundscapes based on water, wind and bird sounds that act in a non-conscious level.

Feedback was universally positive as passengers reported feeling safe, happy and protected.  We not only reached our client’s goals but also increased their profits – as customers felt more relaxed, they spent more time in the airport’s retail spaces and sales in the free shop area increased by 10%.

Harrods, one of our main clients, lacked a sound strategy and customer experience was being damaged by incongruent sound.  Our BrandSound Guidelines defined 140 zones within the store, each with a specific designed sound – either a carefully tailored music playlist or generative soundscapes.  Our suite of generative soundscapes and sound effects in their Toy Kingdom won the gold medal at the Audio Branding Awards last December and shows how to deliver an extraordinary multi-sensory experience.

Q: In terms of promoting a place to attract companies to invest, how can sound branding be of use?

A: Being an essential part of marketing communications, sound can definitely enhance the brand and raise the profile of places.  Our BrandSound model has identified eight expressions of sound, and provides detailed guidelines on how to maximise the benefits of sound using each of them.

Sound (including voice) in advertising has to be completely in line with the values and characteristics of the place, with branding benefits even higher with the use of a carefully designed sonic logo.

Your location might be smart, high tech, sophisticated or, perhaps, an industrial powerhouse.  Regardless of the attributes you want to showcase, it is fundamental to use sounds that embody those features.  When consistent, branded audio (especially podcasts), can be a powerful and cost-effective way to transmit information about a region, while promoting it and enhancing its brand.

In 2011, the Mayor of the City of Lancaster in California contacted The Sound Agency after seeing the potential soundscapes have to improve wellbeing and lower crime rates.  We created and installed a relaxing soundscape for walkers along the city’s half-mile pedestrian district, renamed BLVD.

The soundscape produces a feeling of security using birdsong and evokes purity and serenity using gentle water sounds.  Reactions from citizens and visitors have been extremely positive – some want to buy the soundscapes for their homes and retail spaces!  Media coverage in press, radio and even prime time TV in the USA has been intense, providing the city with great PR.

Regions, cities and districts are already making sound and some of its elements can be incorporated in to designed sound, making the cognitive association much stronger.

A case study that illustrates this is that of the City of Vienna.  Its Tourist Board carried out marketing research to define the sound of the city, which resulted in the Vienna Sound Identity.  A downtempo opera, which evokes the feelings of sensuality, timelessness and sophistication, is the base for its sonic logo and soundscape, which are used in different marketing initiatives such as television spots on CNN and in tourism events abroad.

The key word for great marketing is consistency.  If you already have it visually, sound can help you reach new heights in effectiveness.

We are very pleased to learn more about the pioneering ConnectIreland initiative from Niall Hughes, Director of Business Development at ConnectIreland.

Q: Can you tell us how ConnectIreland came about?

A: ConnectIreland was the brainchild of Terry Clune, founder of the Taxback Group which currently employs 825 staff in 22 countries.  Terry approached Enda Kenny, Ireland’s Taoiseach, with the idea to reward people around the world for introducing Ireland to companies looking to expand internationally.  The Government then tendered for the contract and Terry won the contract under the company name ConnectIreland.  This project is part of the Irish Government’s Action Plan for Jobs 2012, as part of the Succeed in Ireland initiative.  ConnectIreland is an innovative way to create new jobs in Ireland by harnessing the power of the global diaspora – at home and abroad.

Q: What are the main objectives for ConnectIreland?

A: Our mission is to attract foreign companies that are expanding internationally to Ireland through ordinary people – creating jobs and securing the future of the Irish economy.

The Irish Government will financially reward those that help us attract new, sustainable jobs in to the country.  A successful tip-off that results in job creation in Ireland will lead to a payment of between €4,500 and €150,000 depending on the number of jobs created.  All that we ask is that people register as a connector on our website, refer a company that they know is considering an international expansion and we will contact the company to explain the advantages of establishing in Ireland.  If the company chooses Ireland, the person who made the referral will benefit from the reward.

Irish people at home and abroad have a massive global network of family, friends and connections, many of whom have contacts in companies that are expanding internationally.  Through ConnectIreland, everyone (regardless of nationality) can support Ireland by introducing our team to these expanding companies.

We have a 30-strong, dedicated professional team based in Kilkenny, Ireland, which is the central point of contact for all introductions.  Our team also includes experienced foreign direct investment specialists who will work with companies and help them to understand why they should choose Ireland.  A financial reward is available for each successful introduction that leads to job creation.  This reward is payable by ConnectIreland on behalf of the Irish Government through the Succeed in Ireland initiative.  We have been set a target of 5,000 sustainable jobs over the next 5 years.

Q: What is your performance to date?

A: Since the launch in May last year, ConnectIreland has been introduced to 791 companies, 621 of which have been approved by IDA Ireland.  We have helped three companies to expand in to Ireland and have quite a few more investment projects in the pipeline.

Q: What geographies are giving you the best response?

A: Due to the concentration of the Irish diaspora in the United States, we have predominantly been introduced to US companies, followed by companies from Canada, the UK, China and Germany.

Q: From your experience, what are the best methods for getting investment leads?

A: Because of the nature of our programme we have been introduced to companies in a variety of different ways from parents who have children working for companies expanding, to CEOs of major organisations who are dealing with companies that are expanding in to new markets.

Q: What is your selling message for companies to locate in Ireland?

A: Many of the world’s biggest and most successful companies across a range of industry sectors already have considerable operations in Ireland such as Microsoft, Pfizer, Abbott and Intel.  These companies have done their research and voted with their feet, resulting in significant investments in their Irish operations.  This is testament to their confidence and belief in the future of Ireland and her people.

Ireland is home to:

• 9 out of the world’s top 10 medical technology companies such as Boston Scientific and Medtronic
• 8 of the top pharma/bio companies including Pfizer and Amgen
• 10 top “born on the Internet” companies, like Google and Facebook
• 3 of the top 5 games companies, such as EA and Activision

Over 1,000 multinational companies have chosen Ireland as their strategic European base due to its pro-business environment and attractive taxation rates:

• Ireland has one of the lowest corporation tax rates in Europe at 12.5%
• Companies can secure a 25% tax credit against research and development costs
• Ireland has double taxation agreements with more than 60 countries, including every major trading company

There is also Ireland’s talented workforce.  Ireland has the youngest population in Europe with an average age of 34.4 years.  The World Competitiveness Year Book identified that Ireland is the 1st in the world for the availability of skilled labour.  A 2010 European Commission study of third-level education stated that Ireland produced “the most highly employable graduates in the world”.  Collaboration between leading-edge scientists and industry researchers is fostering a new generation of world-class innovation in Ireland

Many other reasons to consider Ireland are highlighted at Invest in Ireland.

Global greenfield FDI statistics for 2012 have recently been announced by fDi Intelligence.  The headline figures are 11,789 FDI projects (a drop of 16.4% from 2011), creating 1.62mn jobs (a drop of 28.8% from 2011), with a total capital investment of $565bn (a drop of 33.5% from 2011).

So the slow recovery of 2011 has stopped, and all regions of the world are in decline, with Europe showing the worst drop in the number of FDI projects - 20.8%.  The forecast for FDI projects in 2013 is for a further contraction of 20%, with all regions to be impacted.

At a recent event at the European Bank for Reconstruction and Development, Courtney Fingar, Editor of fDi Magazine pointed to some bright spots in FDI performance such as Chile, Ireland, Spain and Poland and said that having a good investment promotion agency (IPA) can make a positive contribution to the figures.  The politicians should take note of this, and make sure that they are fully supporting their IPAs.

We are always pleased to find a hidden FDI gem, and our latest is Waterford in Ireland.  We visited world-class manufacturing facilities; met super-smart people; and saw why they have such a great quality of life.  Alas we didn’t get to see all 49 beaches.

While many of our technology clients seem to be focused on Silicon Valley and/or New York as their US entry point, we would like to suggest another option to consider - what about taking their tech to Texas?  We think they would be pleasantly surprised.

Texas was in London yesterday showcasing its attractions for business, and the story is pretty impressive. It is a big economy with a GDP of $1.3 trillion, making it the 14th largest economy in the world.  It has a lot of people - 25.7 million – and a labour force of 12.8 million.  It is the largest generator of jobs in the US, creating 260,800 new jobs in 2012 (and 1.4 million new jobs over the last 10 years), and it is the largest exporter in the US.  Its tech credentials include it being the birthplace of nanotechnology and where the integrated circuit was invented.  It has a very strong story in ICT, cleantech, energy, aerospace, biotechnology and the life sciences.  It also has no corporate income tax or personal income tax, and an attractive business incentives offer.

It has a diverse range of growing cities including the global gateway of Houston, the super cool creative Austin, friendly Frisco, and the business-focused community of Conroe.  From the tech perspective, Austin is getting a lot of growth from the Valley.  Examples include Apple establishing its Americas Operations Centre in Austin, and Google choosing Austin for its Google Fiber ultra high speed (1-gigabit) Internet and TV service.  A technology ecosystem is evolving fast and the SXSW event is the perfect showcase for the city’s tech growth.

Texas is wide open for business and is well worth a look.

It is good to see Cardiff promoting its growing tech scene through Cardiff Start.  Set up by local entrepreneurs to promote the wonders of Cardiff as a place to work and live, it started as a Facebook group and is now setting itself up as a Community Interest Company (CIC).  We find that entrepreneur-led networks promoting their local area to attract inward investment are often much more convincing than government-led initiatives.  When entrepreneurs speak passionately about their place, we listen.

The CIC is an interesting vehicle for investment promotion.  It is a limited company structure for people who want to conduct a business or other type of activity for community benefit and not solely for private gain. One of its strengths is its flexibility, and its use has been growing since introduction in 2005.  There are now over 6,000 CICs operating across the UK, covering a very diverse range of initiatives for community change.  So for locations in the UK wanting to be more pro-active in attracting inward investment, perhaps the CIC model can be of use – and do bring it to the attention of the local entrepreneurs.

In our continual search for interesting places in the UK we keenly monitor the Urban Realm Carbuncle Awards.  Our congratulations to New Cumnock which has just been named Scotland’s most dismal town!

This week’s international food & drink event in London helped to demonstrate the vibrancy and diversity of the food and drinks industry.  With 1,200 exhibitors from 100 countries, one could literally walk around the world of food and drink.  Many of the companies we talked to are focused on cross-border growth which is great news for FDI.  We reckon the food & drink sector deserves more recognition - after all it is the 5th largest FDI sector, accounting for over 5% of all global FDI investments.

The digital creatives at Line Design Ltd have put their own spin on citizenship tests to find out what people know about Scotland: Scottish Border Agency.  How many questions did you get right???

The Flemish lion continues to roar with another good fdi scorecard for 2012.  A total of 159 new investment projects in Flanders created 3,740 jobs.  Over half these projects were greenfield investments, helping to demonstrate that Flanders has still got its mojo.  Invest in Flanders is a consistently good performer, bringing in a high number of investment projects each year.  Over the last 10 years Flanders has attracted nearly 1,500 fdi projects with a capital spend of €16.7bn creating over 32,000 jobs.