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Change Marketing v01

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    Last month, after a Procter & Gamble exec said “I really don’t want to buy any more banner ads in Facebook,\" the New York Times's Randall Stross went to Facebook and P&G to find out more about the relationship.It's an important one because P&G spends $300 million a year marketing branded packaged goods and if it can find a way to make advertising work on the site, the money will start pouring in for Facebook.Stross reports back: \"Neither [company] was inclined to say much.\"P&G would, however, let Facebook talk about one campaign, for Crest Whitestrips -- \"presumably its most successful to date,\" says Stross.For a success story, it's not very impressive. Stross reports:The promotion began in fall 2006, when P.& G. invited Facebook members in 20 college campus networks to become Crest Whitestrips “fans” on the product’s Facebook Page. Facebook said it was a great success, attracting 14,000 fans.One could argue, however, that with the additional enticements that Crest provided — thousands of free movie screenings, as well as sponsored Def Jam concerts — a brand of hemorrhoid cream could have attracted a similar number of nominal “fans.”Becoming a “fan” required nothing more than a single click. When Facebook talks about its 130 million members worldwide, it’s careful to include only active members, defined as those who have logged on within the past 30 days. But when it shows the total number of “fans” on a sponsor’s page, it treats all fans as active.Without endless investment, these sorts of promotions sputter out. More than 4,000 of the onetime 14,000 Facebook fans of Crest Whitestrips have left the fan club.One problem is that Facebook likes to sell itself as a way for brands to interact with potential customers. This rarely leads to success and often leads to silliness. More Stross:The P.& G. spokeswoman pointed me to its “2X Ultra Tide” page. Here one finds an 11-month-old campaign, “American’s Favorite Stains,” where members can post their “favorite places to enjoy stain-making moments!” When I checked last week, it displayed a grand total of just 18 submissions, including two from P.& G., two from someone at The Onion and one-word posts like “Tidealicious!”Facebook has large revenues in its future as a advertising-supported Web site. But it needs to get out of its own way first. Facebook's newest product \"engagement ads\" -- which allow users to comment on banner ads and then puts those comments in other users' News Feeds is just more of the same hokey brand/user interaction.Instead, Facebook must allow advertisers to seem like they're providing financial and technological support for cool new features on the site. Facebook's best parts must seem \"brought to you by\" brands.For example: Facebook's Video application should be sponsored by Pure Digital Technologies, the makers of the Flip, or Sony's CyberShot line.

    As a result, the number of Apple Advocates trends well above that of the B2C technology companies

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    Change Marketing v01 - Presentation Transcript

    1. FUTURELAB THE ARCHITECTS We assist  Marketers to maximise the return on their investments  Innovators to create more successful propositions.  CEO’s to grow profits through customer-centricity. Athens Some Credentials Special Brussels Astra Zeneca Relationship Bucharest Deloitte Hamburg Fortis Investments Iasi Heineken Kiev Hewlett Packard Gemalto Moscow Lego Lexus Shanghai Mobistar Philips Pireaus
    2. FUTURELAB DIGITAL EDITION CHANGE MARKETING? YES WE CAN.
    3. Flashback 2006: I Am The Media FUTURELAB
    4. The traditional marketing model is being challenged, and (CMOs) can foresee a day when it will no longer work. McKinsey Quarterly, 2005, Number 2 FUTURELAB
    5. 2009-2011 The End is Here For many traditional mass-habits FUTURELAB
    6. FUTURELAB US media fragmentation and the demise of the “big 3” Over one-third of US consumers are watching TV shows online Source: Deloitte – State of the Media Democracy Survey, 2008
    7. FUTURELAB TV Ads are being “tuned out” DVR Growth by Region UK DVR owners who fast-forward the adverts (millions of units) (% of recorded programmes) Never ; 6% 48.2 Hardly ever, 3% About half 2008 the time, 7% 2013 8.6 9.4 Always & 1.1 almost always; 88% Europe West Europe East/ME Source: Informa Telecoms & Media, Q4-2008 Source: Ofcom Research, February-March 2008
    8. FUTURELAB In Europe, Internet will soon be bigger than TV European Internet vs. TV consumption Hours/week 37% of french consumers already listen to radio via the internet (IT,UK,DE = ca. 1/3) Internet usage on PC will drop from 95% today to 50% in 5 years time as people switch to other methods Source: Europe Logs On, Microsoft, April 2009
    9. FUTURELAB And it ain’t just the kids Internet vs. real world population by age group United States, December 2008 30% 26% % of total population 23% 22% % of internet population 20% 20% 13%13% 9% 9% 7% 4% 18-32 33-44 45-54 55-63 64-72 73+ Source: Pew Internet and Americal Life Project December 2008 Survey
    10. The answer ... go socio-digital !! FUTURELAB
    11. FUTURELAB After all, there is an ever expanding universe to play with “The workers should appropriate the means of production”
    12. FUTURELAB And engagement goes deep ... very deep 84% of Germans under 30 would rather give up their car or partner than live without internet or mobile telephone. Source: Bitkom study via Onlinekosten.de – March 2, 2009 72% of British male gamers would avoid having sex for a chance to try their hands on a brand new PS3-game. Source: PS3 Price Compare study, via Itproportal, March 3, 2009
    13. The Sad Reality Many digital marketing herd activities just don’t cut it either ... FUTURELAB
    14. FUTURELAB Different Channel, Same Problem 78% of consumers consider in-stream advertising as “intrusive”. Half of viewers stop watching an online video once they encounter an in-stream ad. Source: Burstmedia, January 2008 29% of consumers leave a website that appears to be cluttered with advertising. Source: Burstmedia, December 2008 BANNER/AD BLINDNESS Only 13% of UK consumers pay attention to ads on social networking sites. NEW !! Source: Ebay Advertising, March 2009 TWITTER SPAM
    15. FUTURELAB Different Channel, Same Problem Reality Check What does this mean for the business??? “If I tell my Facebook friends about your brand, it’s not because I like your brand, but because I like my friends.” Mike Arauz
    16. FUTURELAB “Informed” consumers are much less reliant on advertising for product information Out of 20 media company blogs are “least trusted” sources of information. Consumer product ratings/reviews are the second most trusted source. (Forrester, Q2-2008 “The problem is not the [online] medium, the problem is the message, and the fact that it is not trusted, not wanted, and not needed” Eric Clemons
    17. FUTURELAB Across the board (including digital) ... MarCom Needs A Reboot
    18. Image: (c) Adambooth The Core Issue People who live near train lines adjust to the noise. They do the same with advertising. FUTURELAB
    19. FUTURELAB Also in the digital space BRANDS HAVE TO STOP BEING NOISE
    20. FUTURELAB Imagine instead … Getting consumers to embrace the message
    21. FUTURELAB • Harry Potter Books ( + 3000 pages) • General Hospital (11,800 episodes) • The Matrix • Star Academy • Fan Protest Save Jericho It can be done • • Harrypotterfanfiction.net (54,000 stories) Of Gods and Men
    22. FUTURELAB Talking about what YOU want to say Interrupting me Treating me like any other 35-45 year old male
    23. Relevance Relevance € Engagement Reputation Engagement Reputation AN OPEN SOURCE MODEL FUTURELAB
    24. Relevance Relevance € Engagement Reputation Engagement Reputation FUTURELAB
    25. FUTURELAB To make me pay attention, stop looking at yourself BRAND-CENTRIC HUMAN-CENTRIC COMMUNICATION PLANNING COMMUNICATION PLANNING Starts from what the brand wants to say and Starts from what the customers want to “hear” how to efficiently get it to pre-defined and and being relevant to their homogeneous audiences. situation, environment, interests and needs.
    26. FUTURELAB Illustrating the point How to advertise at a busstop?
    27. Brand/Media-Centric Communication Planning You need to get extreme to get noticed FUTURELAB
    28. FUTURELAB relevance = f(personality, need, situation) Human Centric Communication Planning What would this man want to hear?
    29. Human Communication Planning A World of Opportunity I consume a massive amount of media every moment of my day … it’s just not yours. But as a brand, there is no reason why you can’t change this. Mobile Audio/Video Books & Mobile Social Story Busstop Games Podcasts Magazines Television Applications Posters Conversations FUTURELAB
    30. FUTURELAB relevance = f(personality, need, situation) Also in digital/web Don’t look at the box, look at the person
    31. Project Battlecry: Challenge 1 Introduce Human-Centric Communication Planning STRUCTURAL SOLUTION TODAY: Establish a “human driven” communication Take your existing plan planning model and ask yourself “what’s in it for the customer to give me his media-time?” How can I make it more relevant and interesting? And if you don’t know, go into the street and ask. FUTURELAB
    32. Relevance Relevance € Engagement Reputation Engagement Reputation FUTURELAB
    33. FUTURELAB Brands seek loyalty for life Trust us - Engage with us - Become an Advocate - “Love Us”
    34. FUTURELAB • Seduce & Forget Campaigns But in Reality they behave like a • Loyalty Scams • The New Customer is Prettier One Night Brand • • Join This Week’s Community You are just a segment
    35. FUTURELAB After the lies, the forgetting, the disregard, the customer promiscuity Would you still “engage”?
    36. Project Battlecry: Challenge 2 Start Building Individual and Lasting Relationships STRUCTURAL SOLUTION TODAY: Shift from campaign based, mass-comms to life- For every of your long personalised messages: current initiatives, validate how • Think microsegmentation or even individual customers can “really” customers talk back (and who listens). • Build customer life-time communication plans rather than campaigns Look at the explicit and implicit promises you • Change your budget and people structure to make, and check accomodate this changed reality. whether they are kept. Force your team and business to “talk to the customer” (cf. P&G India). FUTURELAB
    37. Windfall: The Mass Market is an Illusion Of 1,365 CPG brands studied Only 2.5% of shoppers made up 80% of Sales Only 25 had a shopper base of over 10% driving 80% of their respective volume FUTURELAB
    38. Your windfall Many CPG’s “could” know every customer Imagine these figures travel to Finland 5,250,000 inhabitants X 90% = 4,725,000 Shoppers X 2.5% = 118,250 people representing 80% sales FUTURELAB
    39. Relevance Relevance € Engagement Reputation Engagement Reputation FUTURELAB
    40. FUTURELAB To Illustrate the value of a reputation Imagine that I want to convince you of my skills as a lover. DIRECT SALES ADVERTISING BUILD A REPUTATION www.greatlover.com I’m a great lover ... He’s a *great* lover !!
    41. FUTURELAB It’s the same for any brand % of people who trust companies less in 2009 than in 2008 Source: Edelman Trust Barometer, 2009 When it comes to company Word-of-Mouth is the #1 Nearly 70% of consumers information, a “peer” is as influence on business- surveyed thought that credible as an industry to-business buying pharmaceutical information from analyst and only decisions peers was credible and preceeded by an “expert” believable, even if the peers were not experts. Source: Keller Fay, July 2008 Source: Edelman Trust Barometer, 2009 Source: Keller Fay, 2006
    42. FUTURELAB The value of a reputation Show Me the Money !! Net Promoter Score is a registered trademark of Fred Reichheld, Satmetrix and Bain & Company
    43. Net Promoter Score is a registered tradmark of Satmetrix, Fred Reichheld and Bain & Company How likely are you to recommend ? 0 1 2 3 4 5 6 7 8 9 10
    44. FUTURELAB Those who speak well about you are more profitable Case: Lifetime customer value Customers that are so happy Disguised they recommend are the most €42,000 profitable of all… -They spend more -They negotiate less € 9,000 -They stay longer -They are easier to service € 3,000 -They upgrade quicker -They bring their friends Detractors Neutrals Promoters
    45. Case in Point: Apple Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008 FUTURELAB
    46. Case in Point: Apple Total Customer Value of an Apple advocate is almost twice that of the industry average, mainly driven by referrals FUTURELAB Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008
    47. FUTURELAB Above all, your reputation drives your profit Share of Wallet (B2B-markets) “at the point of delight, there is an exponential increase in the share of wallet” Source: http://www.ipsos-ideas.com/library/dl.cfm?pdf=IpsosLoyalty_WP_Delight.pdf
    48. FUTURELAB Project Battlecry: Challenge 3 Focus on it Build a reputation TODAY: RECESSION DIGITAL PLAN Prove to your business that reputation matters and can help create or safeguard 2009 sales Helping your business create promoters by High Nurture to promotion Nurture & delighting them Leverage Helping these Share of Wallet promoters spread the word … Build business Abandon Low Low Customer Score or NPS High
    49. Relevance € BATTLECRY Reputation Engagement AN OPEN SOURCE MODEL Relevance: Introduce human-centric communication planning Engagement: Start building individual and lasting relations Reputation: Use digital marketing to create/leverage promoters
    50. In which we should recognise that we are all addicted IN STEAD OF WE THINK Relevance Our Brand Engagement Standardisation Reputation Doing cool stuff FUTURELAB
    51. … and that we are hostages of our own making Media-centric planning & buying systems “Big Idea” creative execution Efficiency-driven compensation systems “Mass”-based orthodoxy FUTURELAB
    52. FUTURELAB Challenge your agencies – your business – yourself to Customer Centricity Profit Help invent a new marketing reality Innovation
    53. FUTURELAB CHANGE MARKETING? YES WE CAN. To contribute to the revolution, get in touch: ath@futurelab.net or @alain_thys

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