Tag Archives: Donald Trump

Zain Ramadan’s ad, the MBC ban and how politics & business mix in the Middle East

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This week Zain put out its Ramadan ad. The Kuwait-based telecommunications company has a reputation for mixing politics into its messaging during the holiest month of the year for Muslims. The company’s advertisement last year, which took on the issue of extremism through a portrayal of suicide bombings and terrorist attacks, became a viral hit in the Arab World.

This year, Zain’s timing is impeccable. The topic of the video is Jerusalem. You can watch the video below (it’s subtitled and includes a couple of nifty cameos by global leaders such as Angela Merkel as well as Donald Trump). There’s also a good description of the video and its context provided by The National’s Naser Al Wasmi. Already there’s been two million views of the video in less than two days.

Zain’s stance on political advertising is unusual. While there’s been a movement in the West for companies to take a stand on political issues that were once deemed to be off-limits (for example, immigration in America), companies in the Middle East rarely speak about wider societal issues.

While Zain’s latest Ramadan video may prove popular with many (Zain has operations in eight countries in the region, including Jordan, Iraq and Lebanon), there’s been reports in the Kuwaiti press that the MBC Group, the largest satellite television station, has banned the airing of the ad on their stations during Ramadan. MBC, which is Saudi-owned, banned the airing of Turkish soap operas in March of this year, a decision which surprised many given the popularity of Turkish dramas across the Middle East but which must be viewed in light of recent Saudi-Turkish relations.

Zain’s Ramadan ad is a rare example of a Middle East business taking the brave decision to use its media voice to take a stance on a political issue. But as has been shown by MBC and other voices online, it’s neither easy nor simple to take on a political issue in a region which is already politically divided across multiple fault lines.

What challenges will communicators face in 2017?

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It’s no understatement to say that 2016 was a shock to the system. We’ve faced political upheavals, the rise of populists and the proliferation of fake news, and that’s just for starters. The Middle East region has been impacted by continuing conflict as well as financial belt-tightening caused by low oil and gas prices. Needless to say, 2016 hasn’t been the easiest 12 months for many communicators.

So what do we have to expect in 2017? Looking into my crystal ball, I see  a number of issues that will grow in prominence. Here’s my take on them:

  • Political Interference and its Impact on Brand Values

The rise of populist politicians isn’t anything new, but their use of social media to communicate directly with their publics, eschewing traditional media, is something brands will have to deal with. We’ve already seen how Donald Trump is impacting brands in the US (examples include his tweets on Boeing and Lockheed Martin, which have wiped billions off company share values).

Communicators will need to work out how to deal with this new type of political interference. They’ll need to improve their online engagement, using the same social media tools as these politicians (Twitter, I hope you realize how much of a god-send Trump is for your platform), as well as espouse brand values that stakeholders believe in and want to defend.

There’s a danger here that brands will retreat into communicating in the same populist language as the politicians, or simply keep quiet and hope that the storm will pass them by. I hope that brand owners and communicators will instead engage on issues with a purpose and positive values.

  • Expect More Fake News

Whether we like it or not, fake news is here to stay. The year that was 2016 saw fake news become a cottage industry, with ‘content producers’ in places like Macedonia spewing out false stories which went viral through social media and which generated thousands of dollars of ad revenues. Much of this fake news was focused on politics; this is likely to change in 2017, with fewer key political votes. Instead, we’re going to see more fake celebrity news, as well as fake news in languages other than English. This may play into regional conflicts. Brands need to be aware of what is being said about them, especially in Arabic, Farsi and other regional languages.

  • The Continued Rise of Social Influencers

 

Whether you like it or not, 2016 was the year of Social Influencers. This trend is set to continue into 2017, particularly with Snapchat having opened up an office in Dubai, and with brands/organizations realizing that they have to do more to engage with stakeholders online. Expect there to be more questions around online metrics such as reach, engagement and, most important of all, return-on-investment. Also expect that the cost of working with social influencers will rise, particularly in locations such as Dubai, Kuwait and Riyadh.

I hope that brands will start to think differently about the type of social influencers they’d like to work with, and begin nurturing relationships with real fans with smaller followings rather than purchase engagement through influencers who have large followings but who don’t necessarily understand or love the brand. In other words, we need to rethink what social influencers are and what they mean to us.

  • The Urgent Need to Prove Our Worth 

This is a perennial favorite, but we’re going to struggle to underline the value that we bring to our organizations in 2017. Why? Because of an inability to link our outcomes to organizational objectives for many of us, partly due to a lack of awareness/understanding about the need to leverage measurement values. We’re also lacking a universal definition of what we do and globally-accepted certifications that prove we can walk the talk. The Global Alliance is working hard on the first issue, and others such as the CIPR and IABC are pushing ahead on the second. However, we’re still going to struggle with proving our worth to those that we work with and others that we need to work with.

There are a number of others who have shared their own views. Wadds has a longer list which is a fascinating read (you can see it here), and Omnicom’s David Gallagher has written down his own thoughts on the issues we will face in the year ahead.

What are your thoughts. What challenges will we see, and what are you looking forward to in 2017? I’d love to hear from you.

Flip-Flopping during a crisis – how Damac’s handling of the Trump backlash has proved costly

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First you don't see it, then you do. Damac initially removed Trump's name after his comments on Muslims, only to restore it a couple of days after (top photo by Reuters/bottom photo by Rahul Gajjar of Khaleej Times)

First you don’t see it, then you do. Damac initially removed Trump’s name after his comments on Muslims, only to restore it a couple of days after (top photo by Reuters/bottom photo by Rahul Gajjar of Khaleej Times)

Imagine for a moment, if you will, one of your key business partners/influencers saying something controversial. Imagine that they’ve just racially attacked your most important group of customers. And then imagine that, rather than dumping this partner, you instead flip-flop around the issue and end up not only looking rather foolish, but do yourself and your reputation a fair amount of harm in the process.

If you work at Damac, you don’t need to imagine any of the above. The Dubai-headquartered real estate developer, which counts Donald Trump as one of its business partners, has been flip-flopping since Trump came out with a comment on the 7th of December that there should be a “total and complete shutdown of Muslims” entering the United States. This statement, which was made following the deadly shootings in California’s San Bernardino, weren’t the first Trump had made about Muslims. He had previously that he was in favour of shutting down American mosques and establishing a database for all Muslims living in the US or giving them a form of special identification that noted their religion.

Damac’s relationship with Trump International includes branding for two Trump-branded gold courses and a collection luxury villas at the developer’s Akoya project in Dubai. I don’t know the full extent of the relationship, but local newspaper 7DAYS claimed that, in addition to the licensing fees that Damac would have to pay to Trump for the use of his name and image, Trump himself had invested in the project.

Following the controversy around Trump’s latest Muslim statements, Damac put out a statement that could be called, at best, avoiding the issue.

Damac Properties senior vice president Niall McLoughlin told 7DAYS in a statement: “We would like to stress that our agreement is with the Trump Organisation as one of the premium golf course operators in the world and as such we would not comment further on Mr Trump’s personal or political agenda, nor comment on the internal American political debate scene.”

Instead of publicly taking Trump to task and distancing the company from his statements, Damac took a different approach. A couple of days after the outcry, on the 10th of December Damac took Donald Trump down – his image and name that is, from their developments. To quote from 7DAYS.

Hoardings that previously carried photos of the billionaire businessman advertising Damac’s Trump-branded golf course and luxury villas stood bare on Umm Suquiem Road on Thursday, right at the entrance to the development.

All well and good you may think – Damac quietly rebranded their development and distanced themselves from Trump. However, in a further twist, Trump’s name was back on billboards two days later, on the 12th of December. Here’s how the English-daily Khaleej Times put it:

On Friday, a prominent advertising billboard showing Trump golfing that had stood at the Akoya development, where the housing and one of the golf courses is being built, was gone. All that remained of it was the board’s brown wooden background. Another billboard declaring the development “The Beverly Hills of Dubai” still stood nearby.

Trump’s name also appeared to have been pulled off one sign greeting visitors to the complex. The sign, outside a sales office at the site, originally had Trump’s name in lettering on a stone wall. But on Friday the letters were littering the ground in front of it.

A second, similar sign facing a major road was intact with Trump’s name on it. Earlier in the week, that sign had been taken down but by Friday, it was back in place.

“The exterior signage at Trump International Golf Club, Dubai was temporarily removed on Tuesday for a short period of time, however as of last night, the signage is back up and fully intact,” the Trump Organization said in a statement to The Associated Press on Friday.

Also, the Damac webpage dedicated to the Trump PRVT gated community, which is part of the development, appeared to have been removed, leading only to a “not found” page.

Since the development is still under construction, the removal of the branding with Trump’s name and image seemed to be largely symbolic. It was not known if it signaled Damac will outright break the licensing contract.

Damac Properties has declined to comment on the removal of Trump’s name and billboard from the property. It earlier said it “would not comment further on Mr. Trump’s personal or political agenda, nor comment on the internal American political debate scene.”

To change the issue, Damac has switched tactic. Instead of talking politics, the developer announced that it would guarantee rental returns for those buying in its Akoya (Trump-branded) project. The National broke the story last week.

Damac Properties, the developer caught in a storm over its partnership with the controversial US presidential hopeful Donald Trump, is offering lucrative rental returns on some of its properties to lure investors.

Damac, which said it would stick with Trump International despite his anti-Muslim tirade, is providing a 24 per cent rental guarantee on selected units in Dubai, including the Akoya project associated with the billionaire, the developer said in a statement.

Owners of selected properties will be able to secure an eight per cent annual return in the first three years after handover.

The company was offering these returns because it believes the Dubai property market is “set for stable growth in the medium term”, Damac said. “We have seen quite a bit of scaremongering in the market in recent months, which can have a detrimental effect on sentiment in the market,” said Niall McLoughlin, the senior vice president at Damac. “By providing such a high, tax-free offering on our units, we are putting our head above the rest and underwriting any fluctuations that may occur down the line.”

Reputational issues become even more important for companies which are listed, as Damac is. Damac’s shares initially fell 15 percent following the muted response. Investors may also not have appreciated the rental guarantee initiative, as you can see from the share price chart below.

Damac's share price fell after the initial outcry. The share price has also fallen following Damac's attempts to repair the reputational damage through the rental incentive promise.

Damac’s share price fell after the initial outcry. The share price has also fallen following Damac’s attempts to repair the reputational damage through the rental incentive promise.

While I don’t know the relationship between the two, would Damac have been wiser to have taken an initial hit and exited the contract with Trump rather than flip-flopping on the issue, drawing it out and drawing more attention to the brand association? Add in the costs with guaranteeing rental returns in addition to the share drop, and this crisis will prove costly both in the short as well as the long-term. To me, the media and the company’s shareholders the answer about whether or not to dump Trump – and take a short term hit through contractual obligations but save the company’s reputation and keep shareholders and customers happy – seems fairly obvious.

When should brands step away from a toxic celebrity – the Trump effect

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The Trump is known for his outspoken views, but what damage have his latest rants done to brands in the Gulf?

The Trump is known for his outspoken views, but what damage have his latest rants done to brands in the Gulf?

I know you’re tired of hearing about Donald Trump. Everywhere I look on the internet and social media, all I see is Trump, Trump, Trump… I am sorry to write about this man again, and give him yet more coverage that he doesn’t deserve, but this time I’m focusing on brands and what they do when their engagements with celebrities turn toxic.

As everyone with an internet connection knows, Donald Trump said something very stupid about stopping Muslims from entering the US. Here’s the Trump in action below.

The problem for Donald, or should I say the brands that are associated with him, is that he has business interests in the Muslim world, including here in the Gulf. Dubai-headquartered real estate brand Damac has been working with Trump for several years, and has a number of golf courses and other developments named after Trump and his family. Dubai’s Landmark Group sells Trump Home-branded products across the Gulf in its Lifestyle shops. While the Al Tayer Group opened two Trump Home by Dorya galleries in the UAE in June.

The response to Trump’s comments about banning Muslims from the US has drawn different reactions from these three entities. Damac was the first to comment, with the company’s Senior VP for Comms saying effectively the Trump brand is distinct from the man himself.

“We would like to stress that our agreement is with the Trump Organisation as one of the premium golf course operators in the world and as such we would not comment further on Mr. Trump’s personal or political agenda, nor comment on the internal American political debate scene,” said Niall McLoughlin.

Al-Tayer shared its own views with the Dubai media’s 7Days paper, with the following statement: “The statement Mr Trump made on the campaign trail is unfortunate. Given his diverse business interests in the region, we hope that he will reconsider this stand.”

Most interestingly, Landmark Group has decided to drop the Trump range of products from its stores. Landmark works with another celebrity who has a love/hate relationship with the public. Bollywood star Salman Khan was convicted of manslaughter earlier this year back in his home country of India, and yet he is still a brand ambassador for one of Landmark’s retail brands.

“In light of the recent statements made by the presidential candidate in the U.S. media, we have suspended sale of all products from the Trump Home decor range,” Lifestyle CEO Sachin Mundhwa said in an email to media outlets including the UK’s Independent.

Will Damac and Al-Tayer follow Landmark’s example? Or will they stick out the ensuing furor? When does a celebrity engagement do more harm than good? With Trump unlikely to apologize for his comments this can only get messier for those companies which are still associated with the Trump.