http://blog.futurelab.net/2008/03/advertising_vs_reality.htmlGerman web site Pundo3000.com has done a case study of 100 product and package shots of packaged food and compared it to the reality of what is inside the package. Within less than a week, thousands of blogs all over the world linked to the initiative, describing it in tones of approval.
And do you know when this research was done……? 1998!
And to make matters worse, the curve is even shorter
So, is it all over? Of course not. And while advertising doesn’t know its dead, we should make the best of it. But we have to prepare for the post-advertising age – and hey, its actually very profitable to do so from now on
What replaces advertisingRespect, Insight, passionReputation, Relevance, EngagementWe will look into this deeper tomorrow
You may have heard of the attention economy…or the reputation economy– but I want to add relevance into the mix to come up with new model
We looked at life in a very simple way by taking all the positive statements we found about a brand and deducting the negative ones (Alex has details)This gives three possible outcomes for a brand:The indicator is very positive, because this means that a surfer is likely to find more positive statements about a brand than negative ones.The indicator is negative, which means that a surfer is likely to find more negative statements about a brand than positive ones. This is BADThe indicator hovers around zero. This is not really good either (better than negative) because it means the brand apparently doesn’t engage people enough to actually write about them.
While a lot of attention goes and should go to online reputation management, it should never be forgotten this is just the “tip of the iceberg”. After all, according to Forrester only small percentages of the online population in Europe actually puts content online. And as there is only a fragment of the total population online in the first place. This means that the people who can form the opinion of your brand online is just a small group (which is not necessarily representative of your overall reputation) but they have a strong influence on anyone finding out about your business through the internet.
But…how do you charge for a great idea and 10 minutes or work?
Yes, I know, the one hot potato that keeps going around. How can we measure all this.Well, first of all – the way you measure TV is pretty meaningless, while those bits of online we CAN measure, are damn accurate.Secondary, we have to rethink our whole system anyway, and stop looking at Tomorrow we will look into this further, and discuss some methods we have
[Digital marketing];[advertising is-dead]
What if there were no more TV?<br />FUTURELAB<br />
WE ARE FUTURELAB<br />We create new profit opportunities for our customers. <br />Our innovations and methods allow:<br /><ul><li>Marketers to become more effective & engaging.
Innovators to identify the next opportunity or niche.
CEO‘s to connect their business to the customer.</li></ul>In the process, we challenge every barrier to business success. We dislike writing reports, billable hours or elaborate processes. <br />Instead, we prefer to "get on" with making money for your business.<br />FUTURELAB<br />
Last Year<br />76% of consumers don’t believe that companies tell the truth in advertisements<br />Yankelowich,2006<br />
Last Year<br />“You can’t bore people into buying your product – you can only interest them”<br />
The Consumer is Tuning Out<br /><ul><li>In 1965, 80% of 18-49 year-olds in the US could be reached with three 60-second TV spots. In 2002, it required 117 prime-time commercials to do the same.” (Jim Stengel, Global Marketing Officer, P&G)
A US hour of prime time TV carried 21 minutes of advertising, Late Night network shows like Leno or Letterman carry 31:27 (TNS Media Intelligence, Q1 2006)
Big Six study (US): People with DVR’s watch 12% more TV, yet 90% of them adskip (Germany : 88.2%)
78.2% of Germans are irritated by advertising, only 24% actually still watches it (GfK Marktforschung)
85% of Chinese stop watching TV during commercial breaks. More than half change the channel, while the rest do housework, eat, chat or use the bathroom. (McKinsey & Co.)</li></ul>FUTURELAB<br />
Last Year<br />“Today's marketing model is broken. We're applying antiquated thinking and work systems to a new world of possibilities."<br />Jim Stengel, Global Marketing Officer P&G<br />
Last Year<br />Advertising Myths<br />1. Frequency is mostly not a driver for action<br />2. There is no golden rule about OTS<br />
Last Year<br /><ul><li>54% of US consumers avoids products & services which “overwhelm” with advertising (Yankelovich Partners)</li></li></ul><li>Share of Voice?<br />
Last Year<br /> Advertising is a tax you pay for unremarkable thinking<br />Robert Stephens, <br /> CEO, the Geek Squad<br />
With total transparency, how can there be advertising?<br />Shotcodes in stores in Japan, telling you where to go to get the product cheaper<br />A fucked company example<br />Total Transparency<br />
Most influential information sources in purchasing electronic goods? (TOP 3)<br />CMO Council’s Retail Fluency Report, 2005<br />Share of total adspend by medium (global) % 2008 forecast (March 2008)<br />What are we focusing on?<br />FUTURELAB<br />
Now…<br />People who live near train lines find ways to adjust to the noise ... <br />Consumers have begun to treat encroaching advertising just like those trains.<br />
“Online video ads are quickly becoming the medium of choice to drive both brand awareness and sales.”<br />(2007)<br />“With young adults now spending on average six hours a week gaming, advertisers should be excited at how well their messages were embraced and the brands positively perceived” (2008)<br />67% of marketers report they will increase their social media advertising budget in 2009<br />
Contextual advertising<br />...has just died<br />
Advertising is dead – long live marketing<br />Lets keep the patient alive a little longer<br />
Procter & Gamble is placing radio-frequency identification tags on products at a Metro Extra retail store in Germany so that when a customer pulls the product off the shelf, a digital screen at eye level changes its message<br />At least be the first! <br />
62%<br />% of marketers advised by agencies to advertise in games/virtual worlds<br />87%<br />% asked to start/increase viral marketing spend on social networks<br />93%<br />% told by agencies to begin/increase viral video spend <br />Marketing Sherpa Ad:tech survey<br />Lemmings?<br />
The Advertising Technique Hype Cycle<br />Isnt there a bit much?<br />Hey, actually this is cool<br />Hmm – what’s this?<br />Naah, cant measure it<br />Sooo 5 minutes ago<br />
The online reputation is just the tip of the iceberg<br />But it can crash your boat<br />Source: Forrester Technographics® - 2008<br />FUTURELAB<br />
So Listen!<br />Because if you don’t listen...<br />
“With regards to the recent Motrin advertisement, we have heard you.<br />On behalf of McNeil Consumer Healthcare and all of us who work on the Motrin Brand, please accept our sincere apology.<br />We have heard your concerns about the ad that was featured on our website. We are parents ourselves and we take feedback from moms very seriously.<br />We are in the process of removing this ad from all media. It will, unfortunately, take a bit of time to remove it from our magazine advertising, as it is on newsstands and in distribution.<br />Thank you for your feedback. It’s very important to us.”<br /> Results 1 - 10 of about 11,600 from twitter.com for motrin.<br />“hell hath no fury like a mommyblogger scorned”<br />
How to control millions of inaccurate and divergent conversations ? <br />YOU DON’T<br />Consumers are beginning in a very real sense to own our brands and participate in their creation … We need to begin to learn to let go.<br />A.G. Lafley, CEO and Chairman of P&G, October 2006<br />(cc) Lynette Webb, 2006<br />
The Power of Recommendation<br />1967<br />1983<br />2001<br />2007<br />1955<br />Word-of-mouth is 7x more effective than newspaper advertising, 5x stronger than a personal sales pitch and 2x as effective as radio advertising<br />Marketing Science Institute, 2006<br />This is not exactly news....<br />
HOW LIKELY ARE YOU TO RECOMMEND?<br />Extremely unlikely<br />Extremely likely<br />DETRACTORS<br />PROMOTERS<br />PASSIVES<br />NPS™= (Promoters-Detractors)/Total<br />Net Promoter Score ™ is a registered trademark of Bain & Company, Satmetrix and Fred Reichheld<br />The Power of Recommendation<br />
Promoters make you more money<br /><ul><li>They spend more
...</li></ul>Slide: Bain & Company, <br />official NPS(tm) presentation Fred Reichheld.<br />Net Promoter Score ™ is a registered trademark of Bain & Company, Satmetrix and Fred Reichheld<br />The Power of Recommendation<br />
Lack of experience with new media (not everyone went “dot-com”)
Venturing into uncharted territory = risky (even on a personal level)
Nobody really knows how things will evolve</li></li></ul><li>General Eric Shinseki, Chief of Staff, US Army:<br /> "If you don't like change,<br /> you're going to like irrelevance even less.”<br />
A deeper look at the model<br />How to improve the relevance of your mediamix<br />How to monetize WoM and Buzzmarketing<br />Social Networks more indepth<br />Net Promoter Score galore<br />Many many more examples and cases<br />Tomorrow<br />