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Future of advertising

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Seems to be the topic du jour; just a few more thoughts to add to the conversation.

Seems to be the topic du jour; just a few more thoughts to add to the conversation.

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  • First of all thanks for the opportunity to present on such an interesting, relevant topic It’s something I’ve been thinking about recently I could go on for hours, but I’ll save you that and I promise only to go on for 15 minutes Just some thoughts and ideas We would like you to put a 15 minute presentation together under the theme 'The future of advertising'. You can present anything you like that you think is interesting. A hint, have a view on co-creation and what that might mean for advertising and how it might change the way we do things including clients.
  • As a planner the natural temptation is to be reductive and yet all-encompassing and come up with something single-minded about the future of advertising (the future of advertising is...) I’m going to avoid that as these sorts of predictions always make one look silly Plus I believe the future is multi-faceted , and I’m just going to propose a few thoughts and ideas and look forward to a discussion
  • As an industry we like nothing more than considering our own future Preoccupied Always panic, fear and uncertainty in every industry about the future That’s just the nature of future It’s the one thing we can’t get a handle on, weather forecasters, city analysts alike Some people of course face the future with optimism, hope and excitement about forthcoming challenges I’m one of them But that doesn’t mean we should underestimate the extent of the challenges we face as an industry...
  • Firstly, there is evidence to suggest that consumers are switching off from advertising Scaremongering, maybe Consumers hate most advertising [Despite rises in Edelman’s trust barometer - restoration of trust] Only 5 % believe advertising claims 50 % say brands don ’ t live up to advertising promises 67 % complain there is too much advertising More than a fifth of firms lowered their advertising budgets in 2010 But Advertising Association data showed 6.6 per cent growth in ad spend in 2010, and firms told the Bellwether report that this yearís budgets are set higher than last yearís actual spend. Companies spent more on internet adverts but cut spend in main media ñ such as press, television and radio ñ in the last quarter of 2010.
  • Then of course the impact of digital technology Andy Nibley, the former CEO of ad agency Marsteller who, over the past decade, has also been the CEO of the digital arms of both Reuters and Universal Music. The explosion of platforms like search, geotargeting, the iPad, and mobile apps means fragmented media budgets and fragmented consumer attention. "The irony is that while there have never been more ways to reach consumers, it's never been harder to connect with consumers ," Think of the 200 Old Spice YouTube videos whipped up by Wieden+Kennedy in 48 hours. "Creating more work for less money is the big paradox," says Matt Howell, president of the Boston agency Modernista.
  • So not only is digital changing the way we think about technology, opening up numerous possibilities and challenges How content is accessed, paid for, best use of the channel But web 2.0 and the migration of our social lives online present further challenges... We need to rethink campaigns as social objects "The Social Object, in a nutshell, is the reason two people are talking to each other, as opposed to talking to somebody else. Human beings are social animals. We like to socialize. But if think about it, there needs to be a reason for it to happen in the first place. That reason, that ìnodeî in the social network, is what we call the Social Object.”- Hugh MacLeod Social media is mainstream - 90% of people take part in it globally - biggest growth is real-time interactions Conversations online impact sales – 74 % of people chose companies or brands based on customer service experiences that are shared online – and research by Google shows that there is a 2 day time lapse between blog mentions and sales, a direct relationship the convergence of advertising and digital the convergence of earned and paid media Old marketing models, about the ‘message’ become lessons in entering informal space, difficulty for clients Not to view social media as a ‘channel’ Assume communities will be interested in their brand Inappropriate and there’s a growing catalogue of errors [find example!!] lots getting it wrong as well as those getting it right
  • And as if we needed anything further to shake up the status quo, crowdsourcing and consumer-created campaigns Are on the increase "Many agencies are hanging on to this idea that creativity is theirs to own and sell," says Harley CMO Mark-Hans Richer. "[Victors & Spoils] offered a great place to start versus sitting across from a creative who spent weeks crafting the perfect idea and gets upset if you want to change a word.” Levis New agency models are uprising Understanding there is a need to adapt Everyone from getting in on the act - whether its just mass customisation (Nike) - or crowdsourcing ideas (Pepperami)
  • All of which is leaving clients in a state of confusion and anxiety
  • It’s basically chaos If we look to the natural world CHAOS But aren’t we forgetting simple evolutionary facts – from chaos comes order And we know from economics that hose that adapt will survive But those that Shape the New World will ultimately profit IT’S AN EMERGING NEW WORLD
  • But does this mean the future of advertising isn’t advertising? – to borrow the title of a recent presentation by William Owen from Made by Many (who are a sort of experience design agency that create new platforms and ‘stuff out of the internet’) I dont think so
  • A belief in the power of advertising Ads are social currency They are formative They affect the way we see the world They are effective ..and I don’t think people don’t like advertising They just cant stand bad advertising 1.TV is the best profit generator2.TV has unbeatable scale and reach3.Weíre watching more TV than ever before4.TV is the most talked about medium both on and offline5. All TV ads are response ads 6.TV is the new point of sale medium7.TV is the dominant youth medium8.TV is THE emotional medium and emotional campaigns are more effective9.TV is the catalyst for other media10.TV builds brand fame
  • But I do think we need to move away from Shouty Dominant Frankly screaming children demanding our attention How do we do this? By getting to know our consumers much better As consumers and as people And being the nice guy at the party, not the arrogant tosser
  • This means that research must evolve ‘ Insight’ can be a bit detached - it’s like intelligence one removed Conversations mean more empathy, connection Whilst lots of the brands that are drawn to social media have mountains of consumer insight, they have very little first hand experience of consumer conversations. At best they view groups of 8 consumers talking to each other from behind a two-way screen. Co-creation overcomes this
  • How will this impact creative ideas? They’ll become fractal – not fragmented Divisible without losing integrity or meaning – or singlemindedness
  • Life coach/psychotherapist (“chemistry meetings”)... And this is what we monetise Developing Knowledge-Based Client Relationships: The Future of Professional Services - Ross Dawson I describe the difference between black-box services and knowledge transfer. A black-box service is one in which a service is rendered to clients, but they do not know what is goes on in performing it, and are literally none the wiser as a result. In contrast knowledge transfer requires rich interaction between client and supplier, usually draws on the diverse skills, experience and knowledge of both, and often results in greater knowledge and capabilities for the client, not just a service performed.
  • Jee Moon, director of brand and marketing at Westpac [said] that an agency roster based on co-creation, not simply collaboration, is key to establishing and maintaining a strong brand identity. Clients are embracing co creation
  • A considerable amount of research is structured to seek conceptual permission from consumers. But given the choice, most consumers are going to revert to familiar constructs and ideas. But do consumers really want it? There are some arguments that co-creation communities only work with the already brand savvy, esp when it comes to actually generating ideas the most powerful work is stuff that people never saw coming there's a certain irony in introducing our own material before we have understood what is already in respondents experience. John Griffiths Talks about getting consumers to make ads to draw out the cliches and conventions of the category Also the humbling of the Creative, but not redundancy – craft still very much essential – but originality and ideas – why would you put a cap on that, they can come from anywhere, who’s to say a creative is more equipped to generate original thinking? So you have research at the beginning of a brief and then test the ideas in small focus groups etc But we look at consumers as subjects as if we were chemists at a lab – we poke them and see how they behave – they’re not inanimate inarticulate matter (in most cases) One particular sore case, we developed a cracking idea for Somerfield which was Popping is the new Shopping, based on the insight that our core shopper did a top-up shop not a weekly shop like the large supermarkets and to increase visit regularity But as usual the execution that got rushed through was centred on a Popping Party, the respondents detected resemblances to Ann Summers party and perhaps drug references, the client panicked, and it was lost But it wasnt about that, it was about creating the feeling of a unique community around somerfield, a group of Poppers with a distinguishing characteristic – the idea was there and i feel sure that in a co-creation environment, people would have got it and we would have found a way to quell the undesirable allusions
  • 10 things I see/hope for advertising in the future (and now!) Incorporated some others ideas and thinking and some of my own I’m sure you’ll have a view
  • Monitor social media regularly Listen to it Versioning, customisable ideas
  • Not only are consumers in control, selecting what they give their attention to, and brands facing more competition than ever Creativity needs to capture their attention AND Spur word of mouth Online/offline For ideas to be spreadable and carry across networks and communities
  • You CANNOT predict which ideas will take off Media needs to combine paid, owned and earned Paid: for scale and reach and speed: social can í t do everything, reach, scale and speed come from paid Owned: for content, relationships, listening and co-creation: open source opportunities are everywhere so create great content, utility and apps Earned: social, WOM, PR, bloggers, influencers: paid can í t do everything; you need a social and conversation strategy, not simply a presence on Facebook
  • Stop thinking in terms of audience and think about a community of participants: a brands consumers may be your best creative resource, or at least your best medium
  • "story building" instead of storytelling -- so they can respond in real time to an unpredictable audience. From fast co article but don’t use this image E-readers. Kindle A story is an ancient device ñ a thread that can hold together a disparate collection of events and weave them into cohesion and meaning ñ helping us to communicate ideas and make sense of them. It seems that every brief over the last two years has started with the words in these uncertain times Consumers are apparently poorer, fatter, probably shorter, deeply disillusioned and more anxious than their mothers. They seek out stories as a way out of what by all indicators is a disturbing reality. We can see this manifest in sales of hardback fiction titles which have soared by 90%, while the top 10 non-fiction books were down 52% year on year (source: The Bookseller, 2009). It is often said that there are only four stories in existence. But I believe that the more stories people need, the more stories there will be. As such, brands that tell the most captivating stories will win consumers hearts.
  • Dawn - contribute to scientific understanding of the solar system by identifying and measuring the diameter of craters 3. Yard sharing 4. Greenpeace greenmyapple.org 5. 10:10 6. Virgin Money - social loans 8. Kiva 10. Buy Nothing Day
  • Behavioural economics will become much more prevalent in our thinking and planning apporach Nudge - N squared - networks
  • Co creation Crowdsourcing Real time conversations The challenge for the planner or strategic agency thinker is more and more as curator (stolen from last year’s Forrester report) Curator of ideas and content The ability to sift through the volume of data Find meaningful insight It really is the age of the planner
  • And the convergence of advertising and digital Dare wins £12 million Post Office advertising account Dare won the business after a pitch against Draft FCB, Leo Burnett and Fallon that kicked-off in June last year.
  • I lied before I am going to end on an all-encompassing reductive statement about the future Us – working together in partnership with clients Us – working with communities who are all interconnected - CO CREATION Us – an understanding that human behaviour is influenced principally by what others do (Herd) and WOM Us – in this room If i didn’t think this was where the future is heading, i wouldnt be here

Future of advertising Future of advertising Presentation Transcript

  • The future of advertising (according to a change-maker)
  • the presentation won’t look like this
  •   View slide
  • er - don’t tell Wight View slide
    • "First the news business, then the music business, then advertising. Is there any industry I get involved in that doesn't get destroyed by digital technology?”
    • Andy Nibley, ex-CEO Reuters, Universal, Marsteller
  • social media ‘changes everything’
    • It’s mainstream
    • Conversations online impact sales
    • Campaigns as social objects
    • Old marketing models need not apply
    • New models emerging (experience design, brand utility)
  • ideas can come from anywhere
  • clients in jeopardy
    • Confusion
    • Shrinking budgets
    • Average CMO tenure down to 22 months
    • Losing confidence in traditional agencies
    • Don't know which newcomers to trust
  •  
  • the future of advertising isn’t advertising?
  •  
    • the nitroglycerine shrieks of the fairies of advertising
    • Ginsberg
  • research must evolve
    • Continuous, iterative, responsive
    • Not just insight, conversations
    • Understanding through immersion
    • Empathy and intuition
    • Head, heart and herd
  • the big idea becomes fractal
    • Adaptable to multiple different conversations
    • Eludes the idea of a ‘destination’
    • Equally effective across broadcast, earned media and networks
  • the new client relationship
    • Partnership – not sycophancy
    • Intelligence – not cleverness
    • Agility – not reactivity
    • Ideas – not messages
    • Open book – not black box
    • “ Co-creation does not mean just sitting side by side, but being in it together, sleeves rolled up and building ideas as one. ”
    • Jee Moon, director of brand and marketing, Westpac
    • Don ’ t give people what they want. Give them what they never believed possible.
  • the future of advertising x10
  • 1. responsive, adaptive
  • 2. more creative than ever
  • 3. lives in the community - not on the marketing plan
  • 4. lights lots of fires
  • 5. campaigns AND platforms
  • 6. better stories
  • 7. pro social
    • Social production
    • Crowd funding
    • Resource sharing
    • Buyer power
    • Missions
    • Trust networks
    • Transparency
    • Solidarity
    • Social learning
    • Slacktivism
  • 8. if Rory has anything to do with it
  • 9. agency as curator
  • 10. agencies doing it differently
  • inevitable reductive yet all-encompassing statement about the future
    • The future is us.
  • thank you