The VP of brand development-foods/Unilever Canada explains how the company takes a consumer-centric approach to advertising.

Everyday needs of people everywhere. That's the challenge a CPG company like Unilever faces everyday in the interactive marketing space. With roughly 1,600 brands worldwide-from Dove and Lipton to Ragu and Suave-Unilever is brand-focused. "We've been actively involved in the review of online," says Mike Welling, vice president of brand development-foods/Unilever Canada. "We believe in taking a wide-open perspective in how we communicate with consumers-both offline and online." Welling talked to iMedia Connection recently to give his views on the direction of the interactive marketing industry and suggestions for its improvement.

iMedia Connection: How does Unilever view interactive marketing?

Welling: We look at everything from the consumers' perspective. We want to know how they behave on a daily basis. Then we make a determination as to what's the appropriate way to interact with them. Most of the products in which we sell are intended to be higher volume. As a result, we tend to look at interactivity as a way to develop our brand relationship with our consumers. The majority of our revenue is going to be generated through traditional brick-and-mortar outlets, not through the interactive medium. But the opportunity to strengthen our relationship with our consumers is where we tend to focus our efforts. In some cases, it's a more effective communications tool than some of the traditional advertising vehicles.

iMedia Connection: How much did you spend last year in online media?

Welling: Let's put it this way: We look at the consumer first, then the channel. The approach we take with each of our individual brands varies. We do see ourselves as being somewhat uniquely positioned in terms of our overall product lineup; we're not just a pure food company and we're not just a pure home-and-care products company. Because we do both, and a lot more, we look to exploit that capability, that uniqueness in how we communicate with consumers.

iMedia Connection: How do you drive traffic to your Website?

Welling: We're not necessarily huge believers in the power of individual brand sites, unless there's a real compelling reason consumers would actively engage in that site. We tend to think of people in terms of needs-stated. People don't go to search out a brand; they go online because they want information about a subject. Therefore, our perspective is you have to go where people are looking for answers, more so than trying to force them to come to you. That said, in some cases it's an effective strategy to drive people to a particular Website. If we have a Website for a brand like SlimFast, for example, where people are worried about dieting and weight loss, they're in a mindset that says they want to participate with that particular brand. But if they have a question about recipe-planning, they are going to be more interested in a site that positions itself as an all-purpose recipe planner, and that's where we'll go.

iMedia Connection: Then what sort of digital marketing efforts does Unilever look for?

Welling: We look to be more involved with content providers, we look to present a relevant message inside the content. A big model for us is the notion of the electronic magazine. If you take a look at iVillage, for example, it positions itself as providing content in a wide variety of areas. How can we leverage something like that in a more meaningful way to our consumers? How do we convey an appropriate message in that environment, because it can also come through toll-free phone numbers and other ways of building relationship-marketing outside traditional methods.

iMedia Connection: So how would you describe your relationship with iVillage?

Welling: We were one of the original partners that developed an area of iVillage. In fact, we set up a separate unit specifically for that purpose so we could learn more about how it all worked and about how people interact with that particular tool. I suppose it was a component of our bleeding edge, as opposed to leading edge use of the Internet. But generally, Unilever doesn't see itself as being a content provider. We're people who understand branding, and understand building relationships with consumers. Therefore, we're interested in looking for ways we can partner with people.

iMedia Connection: So then is branding the focus?

Welling: In most cases, we're trying to provide solutions for people's needs, and somewhere in there we try to work in branding. It can come in the form of contests, promotions, whatever. For example, Good Humor Popsicles is a case where you have kids who are user-friendly with the technology so we get involved with the gaming process. That's entirely different from what we might do for someone concerned about heart-healthy margarine. It comes down to what's the brand, who is it positioned against, and what are they doing online? Most people are going online for news or information, for research and recipes, for music and entertainment. Hence the notion that it's ludicrous with that kind of consumer behavior to think that every brand that puts up a Website is going to be meaningful to consumers. There are too many choices. They're more likely to go to a google.com than to a Lipton Tea Website.

iMedia Connection: What then do you measure?

Welling: How do you justify advertising dollars in general? You look for things like whatever that particular medium offers, and make your own judgments as to which ones are a better indicator of value for money. But I'm a great believer less in the number of click-throughs, and more in the quality of the message that's delivered. The power of great creative can change people's behavior. So in measuring, you look to things not only like click-through rates or whatever other online media tools you might use, but also brand tracking and brand-equity measures. You look to match sales data. It's the most important thing at the end of a day. And that tells you whether you have a healthy brand franchise or whether you're having to buy consumer loyalty.

iMedia Connection: Are you doing any cross-media campaigns?

Welling: We try to start with our communication objectives first, then we try to determine out of all the various tools available, which ones are the best ways to reach consumers. Then we develop the messages. Historically, people would probably start developing a TV campaign and then figure out how to adapt it to everything else. But in some cases, you may choose that the best place is entirely online or doing post-cards at nightclubs. A lot depends on the target audience and the best way to reach that audience that's appropriate for your brand positioning. We try and structure ourselves to avoid media bias and stay consumer-focused.

iMedia Connection: What does online marketing need to do to mature as a medium?

Welling: It needs to stop thinking of itself as just online marketing. The notion that it's going to completely replace traditional marketing makes no sense. We need to understand how it fits in the lives of different consumer segments. We need to understand how it's relevant to different brand owners. And then we need to make a determination as to whether it's appropriate as a primary communication vehicle or as a secondary communication vehicle. As examples, print is a great vehicle for communicating more detailed information because people read when they want more information. Television is more of an entertainment medium. Interactive has to determine what its role is in the mix, and that's based on how people use it. We're a long way off from the hand-held Web access world that people keep talking about. People are looking for ways to make their lives less hectic. Technology right now is oftentimes making their lives more complicated. Witness the whole e-mail overload. I've got 1,500 e-mails on my laptop right now, and I'm in meetings from eight in the morning to six at night. When am I ever going to look at all my e-mails? And I'm supposed to be a smart, media-savvy guy. And that's where the whole notion of permission marketing becomes important. Spamming and the other unwanted intrusion in people's lives really run the risks of causing people to shut down and turn off.

iMedia Connection: What can advertisers do to keep up with the increase in consumer media consumption?

Welling: It comes down to what they're doing when they're online. One of the things I did the other day was interactive gaming. There were a lot of banner ads, which to my mind nobody's interested in because they want to play the games. Now the market seems to price those banners accordingly, recognizing they're of limited value. But one has to wonder-why bother at all?

iMedia Connection: What's standing between traditional marketers embracing the medium and being afraid of it?

Welling: It's fear of the unknown. As a vice president who's responsible for marketing, I get calls every day from service vendors offering me the next great tool to help me win my battles. Most of them don't offer a very compelling story to make me want to engage them. These people need to celebrate effectiveness stories, case studies. Don't just celebrate the creative; help me understand how it can help my business.

iMedia Connection: For TV and radio, "reach" is a valuable metric and commands a premium price. It doesn't seem as though this is as important to marketers on the Web. What role, if any, do large-based networks play in Unilever's future plans?

Welling: I think there can be role for large-based networks-just like there are roles for networks for traditional television-as long as the network positions itself as being a user-friendly way for consumers to access information. If networks position themselves as being content providers, then we'll need them. It's sort of the notion of why do general service women's magazines continue to be popular? Because the average, typical consumer still values them for their contributions as a source of information and ideas. And that's why we keep advertising in them. Fragmentation creates wonderful opportunities to do more creative messaging of greater relevance to people. But the vehicle has to perform a meaningful role for somebody. Otherwise, they'll still look at the TV Guide to figure out what's on TV.