The Death Of Advertising: Omexpo Madrid 2010
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The Death Of Advertising: Omexpo Madrid 2010

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If advertising didn't exist today, would you reinvent it? 90:10's Jamie Burke and David Cushman think too much digital tech and innovation has been focused on making a better message when what we ...

If advertising didn't exist today, would you reinvent it? 90:10's Jamie Burke and David Cushman think too much digital tech and innovation has been focused on making a better message when what we should be doing is making better things.
Is it time to end the insanity of repeating the failed experiment of advertising and to start creating platforms for change.

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  • Beyond Incremental improvements of 0.02 to 0.03%
  • PPC Remains?
  • Twitter.. I hope they are the ones who will innovateWelldone for Facebook making Fanpages free to brands to push creativity for brand engagement but still just ads
  • If you are a brand, media owner, advertiser we can help you become a platform

The Death Of Advertising: Omexpo Madrid 2010 Presentation Transcript

  • 1. The death of advertising?
    If you landed in a world without advertising today, would you reinvent it?
    Ninety10Group.com
  • 2. Who are we?
    The 90:10 Group is a global business consultancy which helps brands and media owners deliver business innovation through social technologies
    Jamie Burke (@jamie247) is its CEO. His background is in digital advertising, social media and as a digital entrepreneur.
    David Cushman (@davidcushman) is MD with 20+ years experience in traditional and social media. He’s the author of The Power of the Network and the blog FasterFuture.blogspot.com
  • 3. We’re here to tell you...
    All media that is a growing media invites the user into its creation and distribution. It is a social media.
    That which isn’t is slowly dying (becoming less relevant)
    Advertising money has followed the users from broadcast media to these new and more social medias
    So has the ineffective mass advertising model
    In a peer-to-peer (P2P) world this is even less relevant
    Social media actually offers the opportunity to form relationships between an organisation and its customers.
    This creates new and more valuable opportunities for ALL parties (media owner, user and previously advertisers).
    We’ll ask: If you landed in a world without advertising today, would you reinvent it? And if not what would replace it?
  • 4. Why is it dying?
    Economic
    Media
    Don’t be fooled economic problems are just exaggerating a bigger disruption in media
  • 5. Socialisation of Media
    Globally more time is spent with online than with any other media (IDC 2008)
    This is now true in Spain, too (as of Feb 2010)
    All Top 20 media online is social in some form...
    It can be shared, commented on or has been created by users
    Google’s search results are dominated by Wikipedia, blogs and increasingly Twitter. They now have launched Google Social Search.
    Almost every website has a comment box
    Every TV and radio show has an official Facebook Fanpage and many unofficial communities
    News is reported faster via Twitter than by the BBC
    More UGC video has been uploaded to YouTube in one year than has been broadcast by TV, globally, EVER
    Almost every computer game in the last year released by major studios, has some kind of online multi-player and social element to it. MMOPRG Massively multiplayer online role-playing games has become a global billion dollar industry.
  • 6. Ad money and method follows eyeballs..
    Mass Market Advertising
    Practices
    Search
    Online Ad
    Formats
    Traditional Broadcast
    Media
    (TV / Print)
    Social Networks
    Mobile?
    But is the improvement more than increment?
  • 7. The Best of Digital?
    Even video combined with flash, still 97.4% waste
  • 8. With Behavioural Targeting?
    Industry CTR = 0.06% - 0.17% is low
    Let’s be generous and call the average 0.12%
    For every 1,000,000 Impressions that’s 12,000 Clicks
    That’s 988,000 people who you spammed and 98% of the clients budget wasted.
    Re-Targeting only improves this on average by max of 0.05%
    (2009 offmaddissonave)
    ValueClick report 98% of people leave a site without converting and the average user needs 7 different contact points before completing a purchase.
    So you could argue you actually need 7 times the impressions.
  • 9. Search?
    On average, Adwords accounts will have a CTR of around 2%.
    E-commerce sites might have an average around 6%.
    Accounts where a company only bids on terms related to their trademark might have 15%.
    In general Google AdSense generates around $2 and $3 CPM on an average with CTR – 1-5% (SEO World)
    But Google don’t publish figures (why?)
    Natural Search: Google and MSN just integrated social into their results so SEO and gaming the system will become secondary to real PEOPLE
    by pasukaru76
  • 10. The clever are socialising but not REALLY innovating..
    Advertising such as PPC Remains?
  • 11. Social Networks?
    News Corp reports $203 Million Loss on MySpace Writedown (Aug 2009)
    Twitter hasn’t made a penny.. Yet.
    In 2010 Facebook will account for nearly one-quarter of all social network ad spending worldwide (Source Vitrue SRM Findings) and still only just broke even on August ’09
    But that’s just ad money following eyeballs.
    Value is still low with CTR on ads estimated to be between 0.01%-0.05% (Business Week)
    As brands try to build communities on fan pages via Wall Posts it can raise to around 6.5%. There’s a clue in that.
    But the only networks to make money are via virtual goods (VirtualTencent.com) 1 billion in 2009 (There is a clue in that too)
  • 12. Mobile
    Some people will currently pay for the privilege of content delivered to their handset but soon we will take this for granted. It will be expected.
    Content will become increasingly user generated
    Geo-targeting around UGC will increase CTR and CR but... Even Blyk failed
    The only ones making real money are those selling ringtones ($750 million, CNN Money), games and Apps ($250 million in Dec 2009, Apple)
    Apple’s App Store – hasn’t been about advertising. It’s delivered function, utility, fun and innovation
  • 13. Insanity
    We move from media to media and repeat the experiment of advertising.
    The Tech gets better and better yet the experiment continues to fail.
  • 14. This is not a blip
    This is not cyclical – it is structural
    The way information is created, published and distributed has changed.
    The terms and conditions of the way you were able to engage with consumers have changed. Forever.
    You can’t apply traditional advertising models to the social space.
    What worked for mass media does not work in the peer to peer realm of social media – where people talk to each other...
  • 15. Hugh McLeod: GapingVoid.com
  • 16. 1-Mar-10
    16
    Social Media: is everybody’s media
    Digitally enabled peer-to-peer networks
    From email and sms to Tuenti and Twitter
    Distribution is by people to people
    Content is by people to be shared with other people
    POWER! It’s shifted from the centre to the edge – from you to them...
  • 17. Where people have access to social media they use it. And they don’t stop
    • The more we talk to and hear from our friends, peers, people we trust, the less we need central authorities broadcasting a lowest common denominator version of events
    • 18. Across Europe, the more people participate in social media, the less they consume broadcast media.
    • 19. Global Time Spent on Social Media Sites is up 82% Year on Year (Nielsen)
  • A different animal: Then sheep, now wolves
    Easy to herd
    Hunt in Packs
    By Bertoz
    By Tambako
  • 20. What worked in the old world won’t work in the new
  • 21. YOU SPOKE THEY LISTENED
  • 22. You were in control
    You made the content
    You distributed the content
    You controlled the user experience
  • 23. Who gets to control production of content now?
  • 24. Who gets to control production of content now?
    Anyone and everyone
  • 25. Who gets to control production of content now?
    Anyone and everyone
    Who gets to control distribution of content now?
  • 26. Who gets to control production of content now?
    Anyone and everyone
    Who gets to control distribution of content now?
    Anyone and everyone
  • 27. Who gets to control production of content now?
    Anyone and everyone
    Who gets to control distribution of content now?
    Anyone and everyone
    Who gets to control the user experience now?
  • 28. Who gets to control production of content now?
    Anyone and everyone
    Who gets to control distribution of content now?
    Anyone and everyone
    Who gets to control the user experience now?
    The user controls their own A-Z journey
  • 29. EVERYONEIS AN ADVERTISER NOW
  • 30. We are in the world of the ever lengthening long tail
  • 31. You can’t buy space in conversations
    They can
    Here’s how
    http://flickr.com/photos/caribb/
  • 32. You can’t target every community of purpose.
    They can
    Here’s how
  • 33. THESTAGE
    Message broadcast at audience
    Scale = audience = where the eyeballs have gone
  • 34. THE STAGE
    But in social networks the broadcast message doesn’t arrive
  • 35. They aren’t looking
    at The Stage.
    They are looking
    at each other
    Scale = lots of communities of purpose = where the eyeballs are focused
  • 36.
    • They share messages among
    their groups.
    • They adapt them to suit theirgroups
    • 37. They make the message theirs
    We share what we think is good with people who (we think) will think its good, too
  • 38.
    • The groups are not fixed (adhoc).
    • 39. The message spreads when the
    groups reform around a new purpose
    Users select what they think is cool (has utility) to take with them on theirjourney
  • 40. Participants adapt
    the message
    to suit the group
    they wish to share it with
    The people best-placed to adapt the message are in the group, not on the stage
  • 41. And so it continues; the
    message evolving to
    survive. Or it dies out
    We share what we think is cool. That which we co-create, we embrace
  • 42. They aren’t your groups,
    they are theirs.
    They aren’t your messages,
    they are theirs
    Marketing is not done to them, it is done by them
  • 43. So, if everyone is an advertiser now...
    Where does that leave you?
    What is your role?
    What would you do if you were parachuted in to Planet Now?
    By Satane
  • 44. What if your role isn’t...
  • 45. What if your role isn’t...
    To control who makes content
  • 46. What if your role isn’t...
    To control who makes content
    To control distribution
    By STP243
  • 47. What if your role isn’t...
    To control who makes content
    To control distribution
    To control the user experience
    By: mattimattila/
  • 48. What then?
    If it is not to control who makes content
    If it is not to control distribution
    If it is not to control the user experience
    What is the role of advertising, then?
    If it’s going to survive then it’s going to have to adapt.
  • 49. The Market Development Cycle
    Indefinitely Elastic Period
    Main Street
    (Declining)
    Main Street
    (Early)
    Fault Line
    End of Life
    Chasm
    Technology Adoption Life Cycle
  • 50. The advertising opportunity:
    Experiential
    Marketing
    Revenue Growth
    Process
    Business Model
    Structural
    Product
    Application
    Time
    Disruptive
    Disruptive
  • 51. We asked 90:10 consultants: What replaces ads?
    Interesting content and services and the means to see what those around you are doing, thinking & getting excited about – Mark Earls (author Herd)
    A network of active and (usually) passive recommendations – Luke Brynley-Jones – organiser Monitoring Social Media
    Long term relationship and advocacy building. Nothing advertises better than buying the same thing again and telling your friends you like it Dr Chris Thorpe – Developer Advocate The Guardian, advisor to UK Government on open data
    The tour de France – designed to sell newspapers ,says it all – Alan Moore, Author Communities Dominate Brands
    1. Transparency of Offering (allowing crystal clear understanding 2. Relevancy of Communication (not assumed but assured 3. Value of Incentive (not necessarily monetary 4. Ease of Interaction (enabling intuitive interaction) – Jonathan MacDonald: CEO JME
  • 52. We have the greatest set of tools in history to connect people
    Surely you don’t think we use them to harvest eyeballs?
  • 53. We asked Twitter
    Word of mouth – on and offline
    Back to how people got the message out before the printing press – with steroids
    Affinity, advocacy and influence
    Engagement
    Recommendations
    Trust
    Virtualgoods
    The broadcasting of content and opinion
    Commercial partnerships
  • 54. Making a better message
    Many of us default to thinking about ways we can make incremental improvements to the messaging or our targeting
    It’s where innovation has focused.
    It’s what technology has been deployed to respond to.
  • 55. It’s an approach that fails
    Bleeding edge tech doesn't = bleeding edge demand.
    I’m old enough to remember Betamax.
    Then there was Phillips CD-i – answering questions customers hadn’t asked
    It tried to do too many things
    Phillips added and added technical functions and spec.
    The execs were convinced the market would lap it up.
    But they forgot to ask what the user would find useful.
  • 56. Who are you innovating for?
    Often we innovate to make things better for ourselves.
    Or to show off how technically clever we are (our spec's bigger than your spec!)
  • 57. A technological arms race
    Is this what much innovation in digital marketing has been about?
    Sharper and sharper focus on tracking and responding to online behaviour - cleverer and cleverer tech, more and more spec.
    All the better to serve the right ad at the right time...
    All the innovation focused on building a better advert.
    A technological arms race in pursuit of incremental improvements in quality or relevance of messages.
  • 58. As many people in the supply chain of advertising as it could be?
    Of course it’s useful to those in advertising, marketing, PR... but
    What do other elements of the messaging supply chain want from digital innovation – from the best-ever way of connecting people?
    Is a better advert what the manufacturers and service providers want from digital technology?
    Is a better advert what 'consumers' want? (they’d like better info, of course, but is that all)?
    Is it what media owners find most useful?
    Who is that useful to?
  • 59. Not a better message, better things
    What if what we all actually want (manufacturers and service providers - customers, media owners too) is improvement in quality or relevance of products and services?
    More potential 'customers' for advertising would find that useful.
    So the role of advertising and marketing may just be in deploying your skills and relationships to improve the quality and relevance of products and services.
    How do you innovate that using digital tools?
  • 60. Become the platform
    A platform organisation uses its available resources to find, connect and support those who share its Purpose.
  • 61. This is not just an advertising solution
    It’s about much more than message delivery, more even than behaviour changing
    This is a solution for media, for consumers, and businesses
    This is the future of the business of business
    It is a solution for the way things get made and made better, for how services get created and how ideas get shared
    It is the new way the world gets changed
  • 62. Platform thinking
    • Organisations should be ‘enabling platforms’ – to bring people together to create outcomes they all care about.
    • 63. Using technology creatively to bring people together to act delivers the most powerful consumer engagement there is:
    • 64. That which we create, we embrace.
    • 65. That which we create we advocate – to our peers.
    Without peer-to-peer sharing there is NO distribution in social spaces.
    • Marketing and advertising agencies should use technology creatively to join their clients in building platforms.
    • 66. Help those with shared purpose find each other, talk together, act together and improve what matters to them, together
  • Instead of this
  • 67. Throw away your hammers; open your doors
    In-the-silo design
    Beyond the Silo
    What you tell them they want
    What they get
    What they want
    What they say they want
  • 68. Or be a broken business
    Inspired by Clay Shirky:
    ‘A screen that ships without a mouse, ships broken’)
    Any business that runs without a comment box, is running brokenDoing business without being open to contribution, is the wrong model for the networked world:
  • 69. Collaboration
    Internal
    External
    Any business that fails to open up to the riches it could share in through the feedback loops and real-time collaboration the internet enables, is a business that is in peril - at risk of being disrupted and defeated by those that are.Next to those from the open future, it is broken.Don’t let yours be one of them.
  • 70. We want to talk to you
    Jamie Burke: +44 7590 488502
    Jamie@ninety10group.com
    David Cushman
    +44 7736 353590
    david@ninety10group.com
    Picture by caese via Flickr