Bubobox Talk May 30th Brussels

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Bubobox Talk May 30th Brussels

  1. 1. This  is  how  “marke.ng  and  adver.sing”  work  these  days.  Through  Word  of  Mouth.  
  2. 2. That’s  why  we  should  all  become    recommenders  of  “The  Recommender  Revolu.on.”  
  3. 3. And  that’s  the  reason  why  I  am  here  
  4. 4. Recommenders  influence  20-­‐50%  of  all  purchasing  decisions.  
  5. 5. Posi.ve  reviews  influence  90%  of  consumers’  buying  decisions.  
  6. 6. Recommenders  recommend  more  and  more.  
  7. 7. Recommenders  recommend,  repurchase  and  …forgive.  
  8. 8. Recommenders  do  it  mainly  online  
  9. 9. While retailers were initially terrified of what bad reviews could do to their bottomline, theyve since witnessed the power of a rave review and embraced the practice. Despiteinitial fears, says Craig Berman, Amazons vice president of global communications, productreviews have only served to increase their customer loyalty. "It helped us build customertrust," he says. "It put us in a special place with customers in that they could come to thesite and get honest and comprehensive — and over time, very substantial — firsthandknowledge from other customers." Berman says the company has some reviewers whotake online shopping to heart. "There are some customers who are extraordinarily proud ofbeing one of our top reviewers — they take their job really seriously." Some of Amazonscustomers are voracious readers who consider it their duty to review one or twobooks every single week. While the company may have come a long way from itsroots, the companys original specialty has not been forgotten.Read more: http://www.time.com/time/business/article/0,8599,2004089,00.html#ixzz2TvUHmQBFJuly 16, 1995““
  10. 10. Reviews  do  the  job!  
  11. 11. Recommenders  buy  and  sell  simultaneously  
  12. 12. In  China  recommenders  influence  more  than  wherever  else  in  the  world.  
  13. 13. In  which  field  do  recommenders  count?  
  14. 14. Why  do  they  recommend?  
  15. 15. Why  has  adver.sing  lost  its  influencing  power?  “Don’t trust it. Nothing but lies. I’ll ask my friends or colleagues”“I don’t care. Will search when Ineed something.”“Haven’t even seen it.”“Nice ad, but so what?Not relevant for me.”“So stupid”.“Too many ads.I avoid them”“Not for me. I just bought my stuff”
  16. 16. 1980-­‐1990:Adver,sing  +10%  =  +2.2%  marketshare  2008:Adver,sing  +20%  =  +2.2%  marketshare  “  ….  the  authors  conduct  a  meta-­‐analysis  of  751  short-­‐term  and  402  long-­‐term  direct-­‐to-­‐consumer  brand  adver?sing  elas?ci?es  es?mated  in  56  studies  published  between  1960  and  2008.  the  study  finds  several  new  empirical  generaliza?ons  about  adver?sing  elas?city.  the  most  important  are  as  follows:  the  average  short-­‐term  adver?sing  elas?city  is  .12,  which  is  substan?ally  lower  than  the  prior  meta-­‐analy?c  mean  of  .22;  there  has  been  a  decline  in  the  adver?sing  elas?city  over  ?me.”  Gerard  Tellis,  PhD  Michigan,  is  Professor  of  Marke,ng,  Management,  and  Organiza,on,  Neely  Chair  of  American  Enterprise,  and  Director  of  the  Center  for  Global  Innova,on,  at  the  USC  Marshall  School  of  Business.  He  is  Dis,nguished  Visitor  of  Marke,ng  Research,  Erasmus  University,  RoUerdam  and  has  been  Visi,ng  Chair  of  Marke,ng,  Strategy,  and  Innova,on  at  the  Judge  Business  School,  Cambridge  University,  UK.  Tellis  specializes  in  the  areas  of  innova,on,  adver,sing,  global  strategy,  market  entry,  new  product  growth,  promo,on,  and  pricing.  Prof.  Dr.  Gerard  Tellis  
  17. 17. US-­‐market  1997  ><  2007  
  18. 18. Up  and  up  it  goes.    (Except  for  a  dip  in  Europe)  
  19. 19. Why  do  these  costs  con.nue  to  grow?  +7% +3,8% +3,8% +4,6% +5,2% YOY-growth20102011201220132014Amazon spent$500 million $557 billion in 2012
  20. 20. It  con.nues  to  grow  because  adver.sing  has  been  an  important  pillar  in  profit  maximisa.on.  *  Produce  @lower  cost.    *  Sell  in  more  markets  @lower  cost  @higher  salesprice/-­‐volume  &  @higher  margin.    
  21. 21. The  difference  between  a  “recommended  beer”  and  an  “adver.sing  beer”.  http://www.ratebeer.com/
  22. 22. The  difference  between  the  fortune  earned  with  each  of  the  2  beers  is  huge.  € 270 million$11 billion
  23. 23. Correla.on  between  defence(war-­‐)  industry,  adver.sing  spending  and  inequality.  0.474  or  0.61?  0.469  
  24. 24. Greece.  The  end  of  adver2sing.  Winter  2013-­‐De  Morgen  Thanks  for  listening.  Mail  ques?ons  to  jevedebe@gmail.com  

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