Some stuff about the future of advertising and marketing

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Slide 4: Since the beginning of time… Since the beginning of time man has needed to •Clothe himself •Feed Himself •Socialise •Communicate •etc

Slide 5: He Invented travel which helped communication and led him to discover that…

Slide 6: The world is a big place… Realised that the world is a pretty big place

Slide 7: So he need to invent different methods of communication to be distributed over vast distances – like carrier pigeons

Slide 8: Or smoke signals

Slide 9: The printing press

Slide 10: The pace picked up when the industrial revolution began and machines became essential to society.

Slide 11: Which eventually led to the information revolution.

Slide 12: pç=Üçï=áë=íÜáë=êÉäÉî~åí So how is this relevant to us?

Slide 13: Marketing started out simple

Slide 14: And got more complicated

Slide 15: Advertisers piggybacked on distributed forms of media to get their product known.

Slide 16: Or spoke to you on your way to somewhere else

Slide 17: Radio has almost solely been an ad supported medium – so they entertained you, and told you about their products

Slide 18: The point is that when the world was like this…advertising was different -Interruptive – Getting People’s attention -Piggy-backing – Piggy-backing a consumer’s valid information choice -Focus was on building meaning through repeated exposure of a single message across a distributed network of media properties with the intention of eventually driving a sale. -In part, Unique Selling Proposition and brand guidelines are devices to control the consistency of that message and to increase the probability of a ‘campaign effect’ -Geographic boundaries meant this could be done very differently in every region -And meant that failure in one region didn’t affect business in another

Slide 19: In the old days advertising was largely of value, as it was an indicator of quality and a demonstration of utility

Slide 21: Over time advertising got more affordable and became overwhelming for customers – the customer value dropped and customers wanted out. But advertising methodologies got more scientific and advertisers honed their craft to combat that. Advertisers had the power to invent a message to generate need and distribute it effectively along with their product.

Slide 22: And then the world got connected and upset the apple cart

Slide 23: The internet has meant that the world has got much smaller

Slide 24: And customers have more power than ever before – and they use it They want integrity and honesty as they always have but now they have unprecedented power to judge it.

Slide 25: They also have unprecedented power to control the information they’re exposed to

Slide 26: Media Consumption - Hours Spent Per Year (US) 2000 1800 1600 1400 1200 1000 2002 2003 2004 2005 2006 Ad Supported Purchase Supported And they choose to filter unwanted stuff out

Slide 27: Click Through Rates are Dropping 0.4 0.35 0.3 0.25 Industry CTR 0.2 Trend 0.15 0.1 0.05 0 2004 Mar-05 Jun-05 2005 Jun-06 Sept. 2006 2006 Mar-07 2006 Nov. Nov. Nov. Dec. And they stopped responding so much to our ads.

Slide 28: They stopped digesting information in the same way which led to some tried and true channels struggling to survive.

Slide 29: Sao Paulo

Slide 30: Even banned billboards

Slide 31: The ability of consumers to interact and communicate has thrown the ‘science’ of advertising and marketing into disarray.

Slide 32: And we’ve been forced into a new age of advertising and marketing – or have we been forced back to somewhere we’ve been before?

Slide 33: tÜ~í=áë=ã~êâÉíáåÖ Fulfilment/ Product/Service Demand Post-Purchase Customer Brand Considerations Operations Trends If we accept that this is a good model of advertising

Slide 34: tÜ~í=áë=ã~êâÉíáåÖ Demand Fulfilment/ Product/Service Post-Purchase Customer Brand Considerations Operations Trends And this represents the focus of marketers today

Slide 35: tÜÉêÉ=ïáää=ã~êâÉíáåÖ=ÄÉ Fulfilment/ Product/Service Post-Purchase Demand Customer Brand Considerations Operations Trends Perhaps this will reflect the focus of marketers tomorrow

Slide 36: aá~Öê~ã=çÑ=ÅìëíçãÉê=ÑçÅìëëÉÇ=çêÖK Production Marketing Customer in F HR an ce So we continue to move to this picture of the marketing organisation

Slide 37: Future %age of spend as eÉêÉÛ eÉêÉÛë=Üçï=f=íÜáåâ=íÜÉ=ïçêäÇ=çÑ=~ÇîÉêíáëáåÖ=ã~ó=é~å=çìí compared with current %age of spend PR Massive Increase Internet Ads Decline Television Ads Decline Catalogues Decline On product Stable Outdoor Decline Radio Ads Decline Newspaper Ads Decline Flyers/Handbills Decline Retail Stable Word of mouth Stable The 1800 1900 2000 The Future Beginning of time This is just a guess

Slide 38: So advertisers used to shouting won’t be getting heard so well anymore.

Slide 39: tÜÉå When will it happen?

Slide 40: aìååç

Slide 41: dê~Çì~ääó

Slide 42: fíÛ fíÛë=Ü~ééÉåáåÖ=åçïK

Slide 43: tÉÄ=NKM

Slide 44: Web 1 was about getting them in, keeping them there, and getting them to come back.

Slide 45: tÉÄ=OKM

Slide 46: It’s about the cloud

Slide 47: It’s everything everywhere

Slide 48: Web 2.0 companies

Slide 49: Subscribe to a different philosophy One of inclusion and solid customer focus

Slide 50: lå=ÇÉã~åÇ It’s about on demand

Slide 51: qÜÉ=ï~ó=óçì=ï~åí=áí Having it the way you want it

Slide 52: Everything is back to front The traditional relationship between powerfukl marketer and powerless market is reversed

Slide 53: She’s got the power now

Slide 54: pç=ïÜ~í=Å~å=~ÇîÉêíáëÉêë=~åÇ=ã~êâÉíÉêë=Çç

Slide 55: Give customers what they want •Be genuine •Don’t overstate •Don’t screw the customer

Slide 56: _ìí=ïÜ~í=~Äçìí=~ÇîÉêíáëáåÖ Advertising isn’t going away it’s just changing

Slide 57: The emergence of the term ‘snack culture’ marks a turning point in how we view content

Slide 58: qÜÉ=ÅÜ~åÖáåÖ=Ñ~ÅÉ=çÑ=ãÉÇá~=ÅçåíÉåí √ NVRM=EáëÜF Billboards Magazines TV Newspaper Movies Telephone Letters Records Books

Slide 59: qÜÉ=ÅÜ~åÖáåÖ=Ñ~ÅÉ=çÑ=ãÉÇá~=ÅçåíÉåí √ qçÇ~ó RSS Magazines TV Newspaper Books IM Billboards Telephone Letters Movies SMS Portal Email Content TV Websites Websites Serials Twitter Mobile content There’s much more to choose from

Slide 60: There is no silver bullet anymore

Slide 61: qÜÉ=içåÖ=q~áä The long tail gives us a glimpse of how we need to drive awareness

Slide 62: qÜÉ=içåÖ=q~áä Popularity Products 80% 20%

Slide 63: oÉí~áä=bñ~ãéäÉ 990,000 Songs have been sold Bricks &Mart Wall Mortar Online Rhapsody 45,000 Songs 1.5 Milliion

Slide 64: qÜÉ=içåÖ=q~áä Dropping Getting Fatter Growing

Slide 65: aáÖáí~ä=áë=ÄçíÜ=Äêç~Ç=~åÇ=í~êÖÉíÉÇ Broad Targeted

Slide 66: aáÖáí~ä=áë=ÄçíÜ=ëáãéäÉ=~åÇ=ÅçãéäÉñ Simple Complex

Slide 67: pÅçéÉ=çÑ=ÇáÑÑÉêÉåí=ÇáÖáí~ä=ëçäìíáçåë Online Websites Online Email Email Blog Media Media Activity

Slide 68: pç=tÜ~í Our aim is to engage the audience and begin a dialogue

Slide 69: båÖ~ÖÉãÉåí The further down the tail – the more relevant and the more impactful.

Slide 70: cçê=~åó=Äê~åÇLéêçÇìÅíÁ cçê=~åó=Äê~åÇLéêçÇìÅíÁ There are really many long tails

Slide 71: There is no one silver bullet

Slide 72: Websites Radio Online Media Games PR SEM Blogs Mobile Outdoor Social Wikis Media SEO Email TV Multiple points of contact Multiple choices for engagement Create gravity for your message

Slide 73: `êÉ~íÉ=ÅçåîÉêë~íáçå=Öê~îáíó=Äó=ÉñéäçÇáåÖ=íÜÉ=ãÉëë~ÖÉ=~Åêçëë=íÜçìë~åÇë=çÑ=ìåáèìÉ= `êÉ~íÉ=ÅçåîÉêë~íáçå=Öê~îáíó=Äó=ÉñéäçÇáåÖ=íÜÉ=ãÉëë~ÖÉ=~Åêçëë=íÜçìë~åÇë=çÑ=ìåáèìÉ= íçìÅÜ=éçáåíë

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Slide 76: _áêíÜ=çÑ=íÜÉ=çåÖçáåÖ=ÅçåîÉêë~íáçå It’s about ‘just do stuff’

Slide 77: ^ÖÉåÅáÉë=Ü~îÉ=íç=ÅÜ~åÖÉ Agencies have to change because •They are campaign focussed not program focussed •They are geared to create messages not value

Slide 78: `äáÉåíë=Ü~îÉ=íç=ÅÜ~åÖÉ Clients have to change because: •They are geared to plan for campaigns not programs •They are set up to produce products and flog them to whoever will buy – not look at who’s buying and understand their needs

Slide 79: She has changed. She is the smartest and most connected customer in history – respect her, be valuable for her, and treat her well or she’ll go to someone who does.