advertising 2020: prof. yoram (jerry) wind insights from ... · content. raves. context. made. s....
TRANSCRIPT
1
Prof. Yoram (Jerry) Wind
The Lauder Professor Emeritus and Professor of Marketing
Director, SEI Center for Advanced Studies in Management
Academic Director, Wharton Future of Advertising Program
@whartonfoa
Advertising 2020: Insights from the Wharton Future of Advertising Program
The Council for Research ExcellenceFuture WebinarsOctober 26, 2017
Explore the implications of the changing advertising scene as reflected in the findings of Wharton’s Future of Advertising Program.
Objective
2
1. Describe the Wharton Future of Advertising program
2. Briefly outline the Beyond Advertising Roadmap
3. Discuss key insights and explore their implications for the audience
4. Conclude with a call for experimenting with some of our insights
Our Agenda
3
Wharton Future of Advertising
Program
4
Wharton Future of Advertising
Program
5
Multi-Disciplinary
Multi-Generational
Cross-Sector
Wharton FoAInnovation Network
6
Agencies Brands Academics
Creatives Analytics Researchers
Tech Designers Neuroscientists
Social Mobile Local
Traditional Media Emerging Media
Behavioral Economics Cultural Anthropology
B2B B2C P2P
Idealized Design: The Best We Can Imagine
200+ Thought Leaders
22 Countries; All Regions
1. What could/should “advertising” look like in 2020?
2. What should we do now for that future?
Wharton FoAAdvertising 2020
7
wfoa.wharton.upenn.edu
Wharton FoAAdvertising 2020
8
9
-Analytic brilliance-Creative brilliance-Design brilliance-Operational brilliance
Brand Steward Network
Culture, Society, & the World
People
COMPELLING BRAND
PURPOSE
ALIGN OBJECTIVES
CHALLENGE YOUR MENTAL
MODELS
ALL TOUCHPOINT ORCHESTRATION
CONTENTRAVES
CONTEXTMADEs
Wharton Future of Advertising Program’s Beyond Advertising
EXPERIMENTATION
1
3
2
5
4
The Network Orchestration Model
UnabatedCha l lenges
to the s ta tus quo
Un-IgnorableForces of Change
+ Speed
+ Breadth
+ Complexity
+ Relevance
+ C-Suite Worthy
10
Unpreceden tedUps ide Po ten t ia l
fo r the fu tu re
1. Science & Tech
2. Media
3. Consumers
4. World Issues
5. Business Models
11
12
Exponential Advances in Science & Tech
Neuroscience & BioscienceEmotions rule
MobileReal time customization and personalization
IOT & AI & Cognitive Computing & VR/AR Understand and Serve
Connectivity & CloudRicher, Faster, Cheaper
13
Exponential Advances in Science & Tech
Deeper Real Time
Understanding
OUTSIZED RESPONSIBILITY
FOR WHAT WE DO WITH THAT
KNOWLEDGE
CommunitiesLet me be a part of it
ChannelsI want to call, click and
visit
Competitive Value
Give me more for my money
ChoiceGive me tools to
makebetter decisions
Customerization and Personalization:
Make it mine
Source: Wind and Mahajan, Convergence Marketing, Financial Times/Prentice Hall, 2001
14
Empowered & Skeptical “Consumers”
Exponential Advances inScience &
Technology
15
BE WORTHY OF RESPECT
AND EARN TRUST
Indiv iduals wi th l ives, aspirat ions, chal lenges, fami ly,
communit ies
Empowered & Skeptical People
unders tand ingapprec ia t ion
ab i l i t y to de l i ve rMeaningfu l ly
Un-IgnorableForces of Change
Media Disruption & Redefinition
One-way Two-way
Static Dynamic
Stationary Mobile
Passive Sensing
One-Dimension Immersive
Visual Multisensory
Media Disruption & Redefinition
16
Exponential Advances inScience &
Technology
17
Media Disruption & Redefinition
Unprecedented Platform Design Capabi l i t ies
EXCEPTIONAL CONTEXUALIZED
EXPERIENCES
Culture, Society & Our World
18
Health Divide
Income Divide
Digital Divide
Education Divide
Equality & Tolerance
Climate & Sustainability
Inspiring, Measurable Business Models
1. The customer
driven/ holistic model
2. The co-creation model
4. Network orchestration
model
3. The open
innovation model
5. The competitive
value model
4. Revenue models
8. The emerging
market innovation
engine
7. Transformation to full service
provider
9. B-Corporations
10. The shift to digital and
network business models
…
Implications?
20
Insight #1:
Traditional mindsets, including those about
advertising and marketing, must be challenged and
potentially changed.Our Insights
21
Implications?
22
23
Mental Models:
The Primary Impediment to Transformation
“It has always worked this way.”
“We tried it and it didn’t work.”
“We’re profitable;why change?
24
What Are Mental Models
and Why Do They
Matter?
Roger Bannister breaks the 4 Minute Mile on May 6, 1954
What is your 4 minute mile?
25
Challenge Our Mental Models of
Advertising
WHO?
WHAT?
CU
RR
ENT
What is the best it could / should be?
TOW
AR
D
Cross-Silo Collaborators
When Needed, Wanted, AppreciatedWHEN?
Where Needed, Wanted, AppreciatedWHERE?
WHY?
Initiatives in Holistic, Dynamic Ecosystem
HOW?
Orchestrated Value-Creation Touchpoints
Multi-Win Outcomes
Marketers and Agencies, through Media, at Target
Demographics
Ads
Frequency
Reach
Push and Persuade For Sales
Ad Campaign
Start using a new vocabulary.
26
Challenge everything. Leave no
sacred cows.
27
Even challenge the objective of the firm…
FROM TO
Maximize long term shareholder value
Align the objectives of the brand, the
people (consumers…) and society
28
Questions and implications re Insight #1WHO?
WHAT?
CU
RR
ENT
TOW
AR
D
Cross-Silo Collaborators
When Needed, Wanted, AppreciatedWHEN?
Where Needed, Wanted, AppreciatedWHERE?
WHY?
Initiatives in Holistic, Dynamic Ecosystem
HOW?
Orchestrated Value-Creation Touchpoints
Multi-Win Outcomes
Ads
Frequency
Reach
Push and Persuade For Sales
Ad Campaign
Marketers and Agencies, through Media, at Target
Demographics
29
Insight #2:
Shift your focus from media mix to portfolios of
all touchpoint orchestration.
All TouchpointOrchestration
30
Customer Service
Website & Apps
Store Design
Package Design
Website & AppsProduct Design
Co- Do Good
31
Questions and implications re Insight #2
32
Deliver your compelling brand purpose with the right content and context
Insight #3:Leverage the power of content
by following the R.A.V.E.S.scriteria and the power of context by following the
M.A.D.E.s criteria
33
The Power of Content:R.A.V.E.S.
Relevant and Respectful• Know, understand…
• Protect & be trustworthy
• Allow for serendipity
The Power of Content:R.A.V.E.S.
Actionable (frictionless)• Opt in
• Learn more & compare
• Share
• Try on/out
• Own (beyond “buy”)
34
35
The Power of Content:R.A.V.E.S.
Valuable & Value Generating• Emotional
• Social
• Cognitive
• Mutually Beneficial
36
The Power of Content:R.A.V.E.S.
Exceptional Experience• Design Thinking
• As good as your last, best
experience
• Or better…
37
The Power of Content:R.A.V.E.S.
Shareworthy Story• Story telling
• Story doing
• Story co-creation
• The “Fame” Effect
38
The Power of Content:R.A.V.E.S.
39
The Power of Context:M.A.D.E.s
Multisensory Aesthetic and Design
• Eyes - sight
• Ears - sound
• Nose - smell
• Mouth - taste
• Body – touch
• Heart - spirit
40
The Power of Context:M.A.D.E.s
Audience frame of mind
41
Delivery Mechanism, Interface, &
Platform/Medium
• Unique characteristics
• Distinctive personality
• Emotional bond with audience
• Trusted Curator & Collaborator
The Power of Context:M.A.D.E.s
42
Environment and Location
• Weather
• Geography
• Crowd
• Happenings/News
• What I need/want right now because of
where I am and what is happening
The Power of Context:M.A.D.E.s
Dick ’s Spor t ing Goods43
Citibank- Citi BikeThe Power of Context:M.A.D.E.s
44
synergy with Other Touchpoints• Exponential Effect of Portfolios
vs. last point attribution/debate
• Really interesting collaborations
The Power of Context:M.A.D.E.s
Keep the R.A.V.E.S.
andM.A.D.E.SGuidelines
Handy
45
Maximized Substance R.A.V.E.S.
Maximized ContextM.A.D.E.S.
R elevant & Respectful
A ctionable
V aluable & Value Generating
E xceptional Experience
S hareworthy Story
M ultisensory
A udience
D elivery Mechanism
E nvironment
S ynergy
+
Questions and Implications Re Insight #3
46
Insight #4:Bridge the Deadly Silos
1) Objective Silos• Sales and Profit vs. Positive Social and
Cultural Impact2) Solution Silos
• “We need a mobile app” vs. “What problem can we solve?”
3) Organizational Silos• Us vs. Them
4) Generational Silos• Extensive Experience vs. Fresh
Perspectives5) Operational Silos
• Product Management vs. Sales vs. Customer Services vs. PR vs. Marketing and Advertising
6) Expertise Silos• The Creatives vs. the Analysts vs. the
Strategists vs….
7) Responsibility and Accountability Silos
• Product/Service Sales Objectives vs. Responsibility and Accountability for Intended and Unintended Impact
8) Intelligence Silos• People vs. Silos
9) National Silos• Global Efficiency vs. Local Sensitivity
10) Cultural Silos• What Makes Us Distinct vs. What
Brings Us Together11) Media/Channel/Touchpoint Silos
• Attribution Winners and Losers vs. Portfolio and Synergy Effect
12) Hidden Silos• The Boundaries we don’t yet see
47
A. Bridge the Expertise Silos• DATA science vs.
methodologists • Secondary DATA vs.
experimentation• The Creatives vs. Analysts
vs. Strategists
The Dozen Silos1. Objective2. Solution3. Organizational4. Generational5. Operational6. Expertise7. Responsibility &
Accountability8. Intelligence9. National10. Cultural11. Media/Channel/Touchpoint12. Hidden
48
B. Bridge the Generational Silos• Millennials vs. others• Extensive experience vs.
fresh perspectives
The Dozen Silos1. Objective2. Solution3. Organizational4. Generational5. Operational6. Expertise7. Responsibility &
Accountability8. Intelligence9. National10. Cultural11. Media/Channel/Touchpoint12. Hidden
49
C. Bridge the Intelligence Silos• People vs. computers• People and computer
(cognitive computing) vs. robotics and AI
The Dozen Silos1. Objective2. Solution3. Organizational4. Generational5. Operational6. Expertise7. Responsibility &
Accountability8. Intelligence9. National10. Cultural11. Media/Channel/Touchpoint12. Hidden
50
Questions and implications Re Insight #4The Dozen Silos1. Objective2. Solution3. Organizational4. Generational5. Operational6. Expertise7. Responsibility &
Accountability8. Intelligence9. National10. Cultural11. Media/Channel/Touchpoint12. Hidden
1) Objective Silos• Sales and Profit vs. Positive Social and
Cultural Impact2) Solution Silos
• “We need a mobile app” vs. “What problem can we solve?”
3) Organizational Silos• Us vs. Them
4) Generational Silos• Extensive Experience vs. Fresh
Perspectives5) Operational Silos
• Product Management vs. Sales vs. Customer Services vs. PR vs. Marketing and Advertising
6) Expertise Silos• The Creatives vs. the Analysts vs. the
Strategists vs….
7) Responsibility and Accountability Silos
• Product/Service Sales Objectives vs. Responsibility and Accountability for Intended and Unintended Impact
8) Intelligence Silos• People vs. Silos
9) National Silos• Global Efficiency vs. Local Sensitivity
10) Cultural Silos• What Makes Us Distinct vs. What
Brings Us Together11) Media/Channel/Touchpoint Silos
• Attribution Winners and Losers vs. Portfolio and Synergy Effect
12) Hidden Silos• The Boundaries we don’t yet see
51
Insight #5
Adopt adaptive experimentation as your
business philosophy
Response
x$
Response
x$
½x 2x
X
X
X
- - - - -- - -
52
Insight #5
Experiment
Benefits of Experimentation:1. Learning & Better Decisions2. Forces Measurement3. Enhances Innovation4. Fosters an Innovative Culture5. Attract and Retain Talent6. Confuses the Competition
53
Insight #5
Experiment
Questions and implications for Insight #5
Reactions?
Amplifications?
Questions?
Applications?
54
• Insight 1: Traditional mindsets, including those about advertising and marketing, must be challenged and potentially changed.
• Insight 2: Shift your focus from media mix to portfolios of all touchpoint orchestration.
• Insight 3: Leverage the power of content by following the R.A.V.E.S.scriteria and the power of context by following the M.A.D.E.s criteria
• Insight 4: Bridge the deadly silos
• Insight 5: Adopt adaptive experimentation as your business philosophy
Reactions?
Amplifications?
Questions?
Applications?
55
Action plans, including a
key experiment
Think like the best
UX designers, and as a disruptor.
56
57