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Social Media & the Strategic Opportunity for Advertising Martin Thomas @crowdsurfing
Hype Shows No Sign of Diminishing
Advertising & Social Media <ul><li>Contradictory messages </li></ul><ul><li>Change drivers </li></ul><ul><li>Reinventing t...
Death of Advertising May have Been Exaggerated £250k for 30 second spot
High Speed v High Production v Ad of the Year?
Big Media v Big Society v Highest rated ad during 2011 Superbowl $20m community fund replaces Superbowl ad
Change Drivers Socio-Cultural & Media Landscape  <ul><li>Trust deficit </li></ul><ul><li>Dispersal of authority & expertis...
Which media owner has larger audience than all these combined?
Change Drivers Evolving Client Demands Fastest growing brand in category without any advertising support 140 m viewers, no...
Change Drivers Shifting Creative Economics Visit Britain saved over  £200k  on photographic costs using Flickr “ A few 19 ...
Change Drivers Emerging Collaborative Business Models <ul><li>Tapping into spirit of collective self expression </li></ul>...
Community Commerce  <ul><li>Self-sustaining creative community </li></ul><ul><ul><li>Members submit designs => 80,000+ sub...
Community Commerce  <ul><li>People-powered mobile network (from O2) </li></ul><ul><ul><li>Members receive points for recru...
Reinventing Agency Model & Approach
Reinventing the Agency <ul><li>Coming to terms with collaborative creativity </li></ul>Crowd/Expert sourcing
Reinventing the Agency <ul><li>Learning from the software industry </li></ul><ul><ul><li>Cathedral = traditional, tightly ...
Reinventing the Agency <ul><li>“ Living life in beta” </li></ul>“ If something looks too perfect, consumers won’t touch it...
Reinventing the Agency <ul><li>“ Living life in beta” </li></ul>Authenticity & topicality more important than production v...
Reinventing the Agency <ul><li>Creativity in real time … all the time </li></ul><ul><li>…  something that the PR industry ...
Reinventing the Agency <ul><li>Need to learn/relearn additional skills </li></ul><ul><li>Aided by client demand for “intel...
Reinventing the Agency <ul><li>Core creative skill remains critical </li></ul><ul><li>Further emphasised by rise of social...
Reinventing the Agency <ul><li>Truly embracing new media opportunities without recycling old ideas & techniques </li></ul>...
www.crowdsurfing.net @crowdsurfing
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Impact of Social Media on Advertising

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Presentation at Advertising in Social Media World conference 6th April 2011

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Transcript of "Impact of Social Media on Advertising"

  1. 1. Social Media & the Strategic Opportunity for Advertising Martin Thomas @crowdsurfing
  2. 2. Hype Shows No Sign of Diminishing
  3. 3. Advertising & Social Media <ul><li>Contradictory messages </li></ul><ul><li>Change drivers </li></ul><ul><li>Reinventing the agency model & approach </li></ul>
  4. 4. Death of Advertising May have Been Exaggerated £250k for 30 second spot
  5. 5. High Speed v High Production v Ad of the Year?
  6. 6. Big Media v Big Society v Highest rated ad during 2011 Superbowl $20m community fund replaces Superbowl ad
  7. 7. Change Drivers Socio-Cultural & Media Landscape <ul><li>Trust deficit </li></ul><ul><li>Dispersal of authority & expertise </li></ul><ul><li>Collective self expression </li></ul><ul><li>New technology </li></ul>
  8. 8. Which media owner has larger audience than all these combined?
  9. 9. Change Drivers Evolving Client Demands Fastest growing brand in category without any advertising support 140 m viewers, no media investment Expert sourced creative campaigns Breakthrough social media
  10. 10. Change Drivers Shifting Creative Economics Visit Britain saved over £200k on photographic costs using Flickr “ A few 19 year old students … can design & produce a brilliant campaign in a few hours that once would have taken weeks of late-night creative work by 50 people to produce” Jerry Della Femina (original Mad Man)
  11. 11. Change Drivers Emerging Collaborative Business Models <ul><li>Tapping into spirit of collective self expression </li></ul><ul><li>Opening up radical new business models </li></ul>
  12. 12. Community Commerce <ul><li>Self-sustaining creative community </li></ul><ul><ul><li>Members submit designs => 80,000+ submissions </li></ul></ul><ul><ul><li>Opportunity to pre test beta versions </li></ul></ul><ul><ul><li>Community votes => 800+ designs </li></ul></ul><ul><ul><li>Designers receive $2,500 + marketing advice + retain IP </li></ul></ul><ul><li>No professional designers, no salesforce, no distribution, no market research, no advertising => $30m revenues … high margins </li></ul>
  13. 13. Community Commerce <ul><li>People-powered mobile network (from O2) </li></ul><ul><ul><li>Members receive points for recruiting new people, making suggestions & solving problems => converted into cash </li></ul></ul><ul><ul><ul><li>20% actively involved </li></ul></ul></ul><ul><ul><ul><li>Aim that 25% of members will get half of cost of calls returned to them for contribution to community </li></ul></ul></ul><ul><ul><li>Plans to involve community in pricing & marketing decisions </li></ul></ul><ul><li>Not reliant on call centres, expensive marketing & product support </li></ul>
  14. 14. Reinventing Agency Model & Approach
  15. 15. Reinventing the Agency <ul><li>Coming to terms with collaborative creativity </li></ul>Crowd/Expert sourcing
  16. 16. Reinventing the Agency <ul><li>Learning from the software industry </li></ul><ul><ul><li>Cathedral = traditional, tightly controlled innovation model </li></ul></ul><ul><ul><li>Bazaar = loose, open source approach, harnessing the skills of the wider developer community </li></ul></ul><ul><ul><ul><li>N ot particularly effective at originating concepts, which still rely on the spark of individual genius to make them happen </li></ul></ul></ul><ul><ul><ul><li>Very effective at testing & improving them </li></ul></ul></ul>
  17. 17. Reinventing the Agency <ul><li>“ Living life in beta” </li></ul>“ If something looks too perfect, consumers won’t touch it as ‘it leaves no space for me ” Clay Shirky Brand owners should “allow their work to get ‘messed up” Alex Marks at Microsoft Advertising
  18. 18. Reinventing the Agency <ul><li>“ Living life in beta” </li></ul>Authenticity & topicality more important than production values
  19. 19. Reinventing the Agency <ul><li>Creativity in real time … all the time </li></ul><ul><li>… something that the PR industry has always taken for granted </li></ul>“ 365 day creativity” rather than concentrating on 1-2 monolithic campaigns every year Robert Campbell, Beta
  20. 20. Reinventing the Agency <ul><li>Need to learn/relearn additional skills </li></ul><ul><li>Aided by client demand for “intelligent rebundling” </li></ul>
  21. 21. Reinventing the Agency <ul><li>Core creative skill remains critical </li></ul><ul><li>Further emphasised by rise of social search </li></ul><ul><ul><li>Emphasis on content rather than tech </li></ul></ul>
  22. 22. Reinventing the Agency <ul><li>Truly embracing new media opportunities without recycling old ideas & techniques </li></ul>Multi-screen Mobile Need to avoid “trying to do today’s job with yesterday’s tools & yesterday’s concepts” Marshall McLuhan
  23. 23. www.crowdsurfing.net @crowdsurfing
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