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Why above the line advertising will stay

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  • 1. Why Above The Line Advertising will stay By Philip De Meulemeester
  • 2. Above The Line Advertising Above-the-line promotions use mass media methods. This type of promotion focuses on advertising to a large audience. It includes print, online media, television, and cinema advertising. Source: Business Case Studies
  • 3. “The death of the 30 sec TV Spot” – Joseph Jaffe (2005) + Trevor Beattie (2013) “Brand Marketing is no longer one-dimensional. It’s now a two-way process, with the company and consumer in constant dialogue” – Razorfish “Can We Kill Off 'Above the Line,' Please?” – Kevin DiLorenzo “Advertising is dead” – Tony Uphoff
  • 4. Why have we blindly accepted this?
  • 5. 1. We have been too obsessed with the NEW, instead of the NOW 2. We constantly overestimate our own lives and situations
  • 6. 1. We have been too obsessed with the NEW, instead of the NOW 2. We constantly overestimate our own lives and situations
  • 7. New Media brought new opportunities
  • 8. New Media brought new business jargon
  • 9. Unresearched and invalid business jargon
  • 10. It brought the idea we’re dealing with an active participating consumer who knows his brands, wants to engage with those brands and will grow more loyal when the brand “talks” more to him.
  • 11. HOWEVER...
  • 12. Average Click Through Rate Average Fans talking about the brands Source 1: Shea Bennett / Media Bistro, 2012 Source 2: Karen Nelson Field + Jennifer Taylor, 2012 1.64% 0.5%
  • 13. The more Twitter Followers we collect, the less likely we will reach those people Source: Shea Bennett / Media Bistro, 2012 0 1 2 3 4 5 6 7 50-1000 Followers 1k-5k Followers 5k-10k Followers >10k Followers %ClickThroughRate
  • 14. Source: European Commission – Media Use in the European Union, 2012 • In Europe, TV is still by far the most watched medium. • Even Radio is still higher than the Internet. %peopleeveryday+2-3/week 0 10 20 30 40 50 60 70 80 90 100 Watch Television on a TV set + via the Internet Watch Television on a TV set Listen to the Radio Read the Written Press Use the Internet Use online Social Networks Watch Television via the Internet
  • 15. • The average American spent about six times more time watching live TV than on the web. • 97% of all video was viewed on a television. Less than 3% was viewed online. • About 0.5% of video viewing was done on a mobile phone. • Average live TV viewing increased by more than 1.5 hours a month compared to last year. • 92% of TV viewing was done live. 8% was time-shifted (DVR.) • TV viewing remains at record high levels. Source: Nielsen – Cross-Platform Report, 2013 In 2013,
  • 16. “Of Course!” They say...
  • 17. ... “We reach less people yet talk to the ones that matter”
  • 18. Source: TNS data for UK, 2005 More than 30% of all buyers buy Coca-Cola less than once a year.
  • 19. The “ones that matter” don’t make up for your business sales
  • 20.  I’m a Facebook Fan  I’m on their Newsletter list  I read and watch their content  I have never bought anything from them
  • 21. Brand Sales Volume Buyer Group % of Sample Buying Frequency in Year 1 Year 1 Year 2 Non-Buyers 44 0 0 14 Light Buyers 22 1 14 16 Moderate Buyers 25 2-4 43 36 Heavy Buyers 9 5+ 43 34 Total 100 100 100 Source: Anschuetz, 2002; US IRI panel data • 14% of the sales came from people not buying the previous year • 9% less sales from the heavy or “loyal” buyers, which accounted only for one third of total sales in the second year Sales of Tomato Sauce brand in the US:
  • 22. Only talking to your “loyal” consumers will kill your business
  • 23. “Your brand’s health depends on lots people who don’t know you well, don’t think of you much and don’t buy you often, if at all.” - Martin Weigel, W+K
  • 24. The market is like a big auditorium, where bigger brands own more seats and where people sit in slighty different seats each time, influenced by where their acquaintances sit at that moment Reference: Mark Earls – Herd, 2009
  • 25. We’ve been obsessed with the NEW so we could grow our own advertising / media business While the numbers are crystal clear: Mass reach is still the most effective method for a brand to grow Reference: Byron Sharp – How Brands Grow, 2010
  • 26. We are not Silicon Valley, We are in the business to make our clients money. And to do so in the most effective and creative ways.
  • 27. So let us please focus less on the NEW And more on the NOW
  • 28. Above The Line Advertising reaches as many people as possbile, no matter what medium
  • 29. More than often, the ones that didn’t care about us at all
  • 30. We assumed those people did care about what we do and who we are because:
  • 31. 1. We have been too obsessed with the NEW, instead of the NOW 2. We constantly overestimate our own lives and situations
  • 32. 0 20 40 60 80 100 Sky Freeview Virgin Media Ad People Normal People Advertising people vs. normal people: Similar TV platform use... Source: TV Nation, Ipsos Media CT/Thinkbox,2013 %ofpeople
  • 33. Advertising people vs. normal people: but not technology ownership... Source: TV Nation, Ipsos Media CT/Thinkbox,2013 0 10 20 30 40 50 60 70 80 90 100 Laptop/PC Smartphone Tablet Game Console Ad People Normal People %ofpeople
  • 34. Advertising people vs normal people: and definitely not social media usage. Source: TV Nation, Ipsos Media CT/Thinkbox,2013 0 10 20 30 40 50 60 70 80 90 100 Facebook YouTube Twitter LinkedIn Instagram Pinterest Ad People Normal People %ofpeople
  • 35. We as marketers see the world in brands and media, just like doctors see the world in diseases
  • 36. Our career bias and jargon overestimates the real world in terms of brands and culture on a daily basis and it infiltrates our objectives, KPI’s and creativity
  • 37. 73% Most people worldwide would not care if more than of brands disappeared tomorrow Source: Havas Media – Meaningful Brands, 2013
  • 38. 1/5 Only brands are perceived as making a meaningful difference in people's lives Source: Havas Media – Meaningful Brands, 2013
  • 39. “If anyone here is in advertising or marketing... Kill yourself” - Bill Hicks
  • 40. The advertising profession has always been one of the least favoured by people, and the modern ways by which we are bothering them again have only nurtured and grown that annoyance
  • 41. How can we make sure our work aims to be meaningful, valuable and effective again?
  • 42. I Embrace the fact that passive consumption is far from dead
  • 43. II Get to the business objective first before thinking How and Who to reach
  • 44. III Be at the front of everything New but work with what works Now
  • 45. IV Accept that barely anybody cares about what you do or who you are
  • 46. V Try to understand culture and people, rather than devices and technology
  • 47. VI Fight for people’s attention instead of assuming they’re listening to you
  • 48. Thank You. philipdemeulemeester@gmail.com http://philipdm.wordpress.com