This is a stub deck of a larger internal presentation on two things: 1) ad formats and mediums and how we do a poor job matching the message to the medium 2) the downfall of the current obsession with targeting. Why creative triumphs over data every time but media agencies and clients are focused on where they can see small gains instead of GIANT GAINS in their ROI The solutions had to be removed for now but I think a smart person could figure it out.

1. MEDIA TYPES
AND THE
CONSUMER
02. 12.12
A dverti sin g
San Fr an cis co
C O N N E C T I N G T H E D O T S
THE COLLECTIVE FACTORY LLC

2. Gene Keenan - The Collective Factory LLC

3. SUMMARY
Todays consumer has 1000’s of media touch points. Digital has changed the way we
look at media because we can now measure it and analyze it in real time. Nielsen
recently released a study that looked at media by type and how the consumer
thought of those media types. This short presentation will look at:
• What is the background behind media consumption
• What are the results of that study
• What are the implication of that study?
• Creative solutions
3

4. BACKGROUND

5. Todays Media Consumption Is Concurrent and non-discriminatory
Usage is focused on
constant entertainment
and truth seeking
through information.
5

6. STUDY RESULTS (CONSUMER MEDIA PERCEPTIONS)

7. The universal access to truth has changed our perceptions.
Regardless of format and contrary to belief, advertising does
not control how people think.
Emails I signed up for Editorial content such as a newspaper article Ads in magazines Brand websites
4% 3% 11% 3% 6%
3% 4% 4% 4%
36% 46% 12%
34% 49%
22% 52% 17%
31% 49% 11%
Ads served in search engine results Products shown embedded in TV Ads on mobile devices Ads in radio
2%
7%
2% 2% 3% 6% universal in
19% 52% 19% 15% 53% 18% 11% 11% 50% 22% 15% 24% 51% 16%
lack of trust
Online video ads Online banner ads Ads on social networks Ads on TV
2% 2% 2% 7%
3%
17% 52% 20% 9% 14%
51% 23% 11% 13% 48% 24% 13%
26% 45% 19%
Trust Completely Trust Somewhat Neither Trust nor Distrust Don’t Trust Much Don’t Trust At All
7 Nielsen, Global Online Survey, Q1 2011

8. INDIVIDUAL RELATIONSHIPS AND COLLECTIVE WISDOM DO HOWEVER WORK
RECOMMENDATIONS FROM PEOPLE I KNOW CONSUMER OPINIONS POSTED ONLINE
note drop off
#1 #2
4%
2%
1%
2% between friends
18% 58% 21% 45% 38% 10%
and just
consumers
Trust Completely Trust Somewhat Neither Trust nor Distrust Don’t Trust Much Don’t Trust At All
8 Nielsen, Global Online Survey, Q1 2011

9. HISTORY (A BRIEF LOOK AT HOW WE GOT TO TODAY)

10. BEGINNING OF INDUSTRIAL REVOLUTION
advertising started with
functional attributes
It focused on NEEDS of
consumers
10 source: adam curtis: century of the self vol 1.

11. INDUSTRIAL REVOLUTION: SUBCONSCIOUS DESIRES
To address the concerns of companies that
eventually consumers would stop buying things
because they had the wares that they needed
Eddy Bernay’s championed the idea of tying the
subconscious desires of consumers to the product
Shifting from needs to desires
To create need where none existed
The availability of consumer credit on a mass scale also drove consumption by making it
possible to buy “desires.”
11 source: adam curtis: century of the self vol 1.

12. THEN THE INTERNET CAME ALONG
• Making it possible for consumers to talk to
a greater pool of consumers and to seek
the truth about a particular product
Truth about any product
became a mouse click away
12

13. NET RESULT (IMPLICATIONS)

14. ACCESS TO INFORMATION HAS
CHANGED BUT ADS HAVE NOT
(we still seek simple reach impressions instead of dialog)
14

15. AND WE WONDER WHY CMOS ARE UNHAPPY WITH THEIR AGENCIES
9% of marketers believe
traditional ad agencies are doing a stop
good job of evolving and extending
their service capabilities.
Only 36% of marketers are
committed to their agency
relationships
as an agency, we keep driving off
the cliff expecting a different result
15 http://www.mediabizbloggers.com/uwe-hook/The-State-of-Agency-Brand-Relationships---Uwe-Hook.html

16. SO… REGARDLESS OF MEDIA CHANNEL OR AD FORMAT, THE COLLECTIVE STORY IS WHAT STICKS.
While, there is no magical ad placement
that can control the stories people share
about your brand…
You can be a part of shaping the story that
is told. In the age of connected devices
and connected consumers the key is to
focus on a story that is true and
compelling.
16

17. We need to move the messaging to storying
telling not a better/more flash ad format or
targeting capability via DSP’s/DMP’s
media agencies are mindlessly obsessed with targeting
17

18. WHY FOCUS ON CREATIVE?

19. BETTER CREATIVE IS 4X MORE EFFECTIVE THAN A MEDIA PLAN
According to Comscore:
SIDE BAR
52 percent of sales lift variance
is attributable to the quality of Every agency is focused on optimizing media
through DSP’s and DMP’s but better creative
the advertising creative will make a bigger impact every time.
ADVANTAGE:
FOUR TIMES While everyone else is focused on optimizing an
internal combustion engine we will focus on a
the importance of the hybrid approach which is better creative driven
by technology married with strong media.
media plan
19 http://www.comscore.com/Products_Services/Advertising_Effectiveness/Creative_Messaging_Optimization?articleid=90&zoneid=4

20. In case you missed the last slide:
Better creative is 4X more
effective than the BEST media
optimization.
http://www.comscore.com/Products_Services/Advertising_Effectiveness/Creative_Messaging_Optimization?articleid=90&zoneid=4

21. HOW WILL WE KNOW THE
CREATIVE IS BETTER?

22. BY TESTING IT!!!

23. CREATIVE TESTING WILL BE AT THE CORE OF SUCCESS
58% of CMO’s are unsatisfied with UNMET NEED
the evaluation process associated =
with benchmarking their agencies' CREATIVE
creative advertising effectiveness. TESTING
“The most important word in the vocabulary of advertising is
TEST. If you pretest… you will do well in the marketplace.”
- David Ogilvy
23 http://www.mediabizbloggers.com/uwe-hook/The-State-of-Agency-Brand-Relationships---Uwe-Hook.html

24. ISN’T CREATIVE TESTED ALREADY?
Not really.
WHY?
Because of the cost of Flash
production, clients rarely pay for the
creation of additional units for testing.
24

25. CREATIVE CASE STUDY
P&G Febreze | Triumph of Creative Over Targeting | P&G The King Of Creative Testing
BACKGROUND Lot’s of great examples of
P&G spends millions developing a new product and millions more marketing it. They creative winning but this P&G
apply the right media targeting to expose the right audience to this new product. example is great because
Sales of the product started small and got smaller as the weeks rolled on despite better creative married with
heavy media spends against the right target insight made a failing product
successful
INSIGHT
P&G focused on using Febreze to eliminate odors instead of making it a habit as
part of your cleaning process. “Spraying feels like a little mini celebration when I’m
done with a room.”
SOLUTION
The marketers needed to position Febreze as something that came at the end of the
cleaning ritual, the reward, rather than as a whole new cleaning routine.
RESULTS
The Febreze revamp occurred in the summer of 1998. Within two months, sales
doubled. A year later, the product brought in $230 million. Since then Febreze has
spawned dozens of spinoffs — air fresheners, candles and laundry detergents — that
now account for sales of more than $1 billion a year.
25 source: http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html?pagewanted=all

26. CHALLENGES OF SUCCESS (CREATIVE)
25

27. WHAT ARE THE CHALLENGES OF CREATIVE TODAY?
Not measured (in most cases)
Were using formats ill suited for the medium
Media formats consumers find annoying
27

28. WHAT ARE THE REASONS BEHIND THIS?
CHALLENGE REASON
Cost
is
too
high
for
most
clients
to
run
A/B
tes4ng
on
Not measured (in most cases) crea4ve
because
of
the
use
of
Flash
or
poorly
informed
media
and
crea4ve
teams
Were using formats ill suited for the These
formats
(flash
banners,
take
overs)
are
more
medium profitable
than
sta4c
ones
Media formats consumers find These
formats
(flash
banners,
take
overs)
are
more
annoying profitable
than
sta4c
ones
28

29. A QUICK REVIEW OF EXISTING
CREATIVE BENCHMARKS
29

30. ONLINE AD FORMATS AND CTR
0.11%
0.11%
0.09% 0.09% 0.09% 0.09%
0.08% 0.08%
Statistically, there
0.06% is little difference
between any of
0.03% the ad formats
0%
ds ds eo eo eo eo
eA
Flas
hA -Vid /Vid -Vid /Vid
mag on age Non able
I ge/N In-P ble/ and
-Pa RM pan
da
ME
xp
R M In Ex R
RM
CTR
30
source: google/double click ad benchmarks

31. ONLINE AD FORMATS AND TIME SPENT
Average Display Time
6.3
Half page Ad Non-Video
9.9 64.2
9.3
Half Page Ad Video
13.3 60.1
8.4
Large Rectangle Video
16.0 68.2
Large Rectangle Video
7.5
0 78.2 Regardless of unit
Leaderboard Non Video
5.9
11.0 32.7 type, interaction
7.1
Leaderboard Video
20.0 34.3 times are about
6.1
Medium Rec
12.0 32.3 the same
7.3
Skyscraper Non-Video
21.3 33.7
2.5
Skyscraper Video
4.5 33.4
7.3
19.9 25.6
Wide Skyscraper Non Video
7.9
Wide Skyscraper Video 26.1
27.2
0 20 40 60 80 Average Interaction Time
Average Display Time
Average Expanding Time
31

32. MOBILE AD FORMATS AND CONSUMERS
30% Full Page Ad
High click High click
potential/Low potential/High Sponsored App
noticeability noticeability
25% Mobile Internet Banner
% Saying Ad would click on Ad
Take Over Static Mobile
20% App-Integrated Top Banner Internet Banner is
Sponsored SMS least annoying
15% Conversational SMS and most effective
App-bottom banner from a click
10% through
perspective
5%
Low click Low click Size = % who say ad
potential/Low potential/High in context is annoying
0% noticeability noticeability
0% 20% 40% 60% 80% 100%
% Saying Ad is Obvious in Context
32 source: Insight Express
32

33. MAKING STATIC WORK

34. MATCHING CREATIVE TO THE MEDIUM
WE NEED TO THINK ABOUT HOW
MEDIUMS BEST TELL STORIES:
Which Format Will
People are not on content pages long Work Best Here?
enough to watch our 30 second 4 loop
flash banner. Instead a “static
billboard” might be more effective
(and cheaper).
Make static work by combining Imagine driving down the highway and
the medium with the capabilities there is a billboard. You only have a few
seconds to get your message across to
of ad servers.
the driver. Is a 30 second banner going
to get your message across?
34

35. END FOR NOW

36. CONTACT:
Gene Keenan
gene@thecollectivefactory.com
415-218.7369
http://www.thecollectivefactory.com