Nj Ad Club Preso 2009 Adv In Econ Downturn

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Presentation for the NJ Ad Club regarding advertising during economic downturn. How to leverage media, message and maximize budget. More importantly, what the future holds for marketers.

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Nj Ad Club Preso 2009 Adv In Econ Downturn

  1. 1. Please Note: This presentation for the NJ Ad Club was originally given in a room without a projector or screen. The presentation was done “the old fashioned way” – hand written on a large white paper pad.
  2. 2. New Jersey Ad Club Advertising in Times of Economic Downturn Gregory Padley
  3. 3. Staying The Course <ul><li>GE founded in panic of 1873 </li></ul><ul><li>DISNEY founded during recession 23- 24 </li></ul><ul><li>HP founded = GREAT DEPRESSION </li></ul><ul><li>MICROSOFT founded 1975 </li></ul><ul><li>iPOD launched during 2001 recession </li></ul>
  4. 4. Staying The Course <ul><li>McKinsey Study </li></ul><ul><ul><li>Those who increased mktg spend were ONLY ones whose profit rose </li></ul></ul><ul><li>McGraw Hill Research </li></ul><ul><ul><li>Reviewed 600 companies 1980 – 85 </li></ul></ul><ul><ul><li>Sales rose 256% for those who continued adv </li></ul></ul><ul><li>1930’s Depression </li></ul><ul><ul><li>Kellogg’s maintained while Post decreased </li></ul></ul><ul><ul><li>Kelloggs dominated cereal for next 50 yrs </li></ul></ul>
  5. 5. Is There a CEO or CFO in the Room? Someone who would make the final decision to “stay the course”? No. So how do we maximize what budget we do have and forge ahead?
  6. 6. Media <ul><li>Fish where the fish are </li></ul><ul><ul><li>Minimize waste </li></ul></ul><ul><ul><li>Market only to those most likely to buy </li></ul></ul><ul><li>Leverage your spend </li></ul><ul><ul><li>Value added from media partners </li></ul></ul><ul><ul><li>Partnerships </li></ul></ul><ul><ul><ul><li>Events / Contests / Promotions </li></ul></ul></ul><ul><ul><ul><li>Sponsored content </li></ul></ul></ul><ul><ul><ul><li>Introductions to prospects and other advertisers you can partner with </li></ul></ul></ul>
  7. 7. Message <ul><li>Craft your message using the two V’s </li></ul><ul><li>V # 1 is VALUE </li></ul><ul><ul><li>Play up the ‘practical side’ </li></ul></ul><ul><ul><li>Value proposition – prove it </li></ul></ul>
  8. 8. Message <ul><li>Craft your message using the two V’s </li></ul><ul><li>V # 2 is VALUES </li></ul><ul><ul><li>Core Values </li></ul></ul><ul><ul><ul><li>Core Values of the Brand </li></ul></ul></ul><ul><ul><ul><li>Core Values of Life </li></ul></ul></ul><ul><ul><ul><ul><li>People are more sensitive during tough economic times </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Leverage feelings of family, friends, security </li></ul></ul></ul></ul>
  9. 9. Case Study – De Beers <ul><li>De Beers Shadows Campaign </li></ul><ul><li>Situation: </li></ul><ul><li>Selling diamonds during the recession of the early 1990’s </li></ul><ul><li>Luxury item sales in decline </li></ul>
  10. 10. Case Study – De Beers <ul><li>Stepped program lead prospects along path to purchase </li></ul><ul><ul><li>Sentimental message for women </li></ul></ul><ul><ul><li>Diamond education for men </li></ul></ul><ul><li>Increased sales 8% annual avg over 3 yrs </li></ul><ul><li>At recession end profits recovered by 21% </li></ul>
  11. 11. Case Study - Grenada <ul><li>Grenada Tourism Q4 2008 </li></ul><ul><li>Situation: </li></ul><ul><li>Recession news abounds </li></ul><ul><li>Caribbean travel across region DOWN </li></ul><ul><li>Grenada begins new American Airlines flight from NYC </li></ul>
  12. 12. Case Study - Grenada <ul><li>Focused message where consumer most likely to purchase </li></ul><ul><ul><li>On Line Travel Agents </li></ul></ul><ul><ul><ul><li>Expedia, Orbitz, Travelocity, TripAdvisor </li></ul></ul></ul><ul><ul><li>Targeting New York area travelers </li></ul></ul><ul><ul><li>Consumers searching for similar destinations </li></ul></ul><ul><li>Orbitz Oct. room nights UP 15% YOY </li></ul><ul><li>Expedia Q4 room nights UP 25% </li></ul><ul><li>Travelocity Dec. room nights UP 19% </li></ul>
  13. 13. 3 Strategies <ul><li>New creative, targeting or media opportunities </li></ul><ul><li>Strengthen market position against rivals </li></ul><ul><li>Keep going </li></ul>
  14. 14. Will This Work in the Future? <ul><li># Years to 50 Million Users </li></ul><ul><li>Radio 38 years </li></ul><ul><li>TV 13 years </li></ul><ul><li>Internet 4 years </li></ul><ul><li>iPod 3 years </li></ul><ul><li>Facebook 100 Million users in 9 months </li></ul><ul><li>iPod app downloads 1 BILLION in 9 mos </li></ul>
  15. 15. State of Consumers & Tech <ul><li>Forrester Research </li></ul><ul><li>2009 consumer UNRECOGNIZEABLE from 1999 consumer </li></ul><ul><li>Consumers – all ages – moving to online </li></ul><ul><li>Americans spend 8 hrs ‘offline’ AND 8 hrs ‘online’ a week </li></ul><ul><li>25% of US households have a DVR </li></ul>
  16. 16. State of Consumers & Tech <ul><li>Forrester Research </li></ul><ul><li>88% of people under 40 are regular Internet users </li></ul><ul><li>Half of Americans research a product online before they purchase </li></ul><ul><li>Half of US adults play computer games </li></ul><ul><li>Digital will not abate, it will intensity </li></ul>
  17. 17. Marketers Say…. <ul><li>Digital is no longer experimental </li></ul><ul><li>DM, TV, Print, Outdoor, Newspapers have lost effectiveness </li></ul><ul><ul><li>50% of marketers agreed </li></ul></ul><ul><li>Social Media, Online Video, Mobile effectiveness increase </li></ul><ul><ul><li>+70% of marketers agreed </li></ul></ul>
  18. 18. Digital Spending <ul><li>Overall Digital </li></ul><ul><ul><li>12% of overall spend in 2009 </li></ul></ul><ul><ul><li>21% of overall spend projected for 2012 </li></ul></ul><ul><li>Online Video Ads </li></ul><ul><ul><li>$870 million in 2009 </li></ul></ul><ul><ul><li>$3 billion in 2014 projected </li></ul></ul><ul><li>Social Media </li></ul><ul><ul><li>$716 million in 2009 </li></ul></ul><ul><ul><li>$3 billion in 2012 projected (not incl. display) </li></ul></ul>
  19. 19. <ul><li>Where are your customers? </li></ul><ul><li>Where are your competitors? </li></ul>
  20. 20. <ul><li>Innovate or Die </li></ul>
  21. 21. 3 Strategies ~ Revisited <ul><li>1.New creative, targeting or media opportunities </li></ul><ul><li>Reach out and partner with media </li></ul><ul><li>If you are not already there, start online </li></ul><ul><li>2. Strengthen market position against rivals </li></ul><ul><li>Reach out, partner, leverage relationships </li></ul><ul><li>3. Keep going </li></ul><ul><li>Buying cycles have increased </li></ul><ul><li>Nurture leads – Social Media & Traditional </li></ul>
  22. 22. <ul><li>Recession 101: </li></ul><ul><li>No One Can Repossess Your Future </li></ul>
  23. 23. Thank You! <ul><li>Gregory Padley </li></ul><ul><li>My Blog: www.5691gerg.com </li></ul><ul><li>LinkedIn: www.linkedin.com/in/gregpadley </li></ul><ul><li>Twitter: www.twitter.com/5691gerg </li></ul><ul><li>Delicious: http://delicious.com/5691gerg </li></ul><ul><li>(most of the source material for this presentation is book marked in Delicious) </li></ul>

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