advertising 2020: prof. yoram (jerry) wind insights from ... · content. raves. context. made. s....

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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

windj@wharton.upenn.edu

@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

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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

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Wharton Future of Advertising

Program

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Wharton Future of Advertising

Program

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Multi-Disciplinary

Multi-Generational

Cross-Sector

Wharton FoAInnovation Network

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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

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wfoa.wharton.upenn.edu

Wharton FoAAdvertising 2020

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-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

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2

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The Network Orchestration Model

UnabatedCha l lenges

to the s ta tus quo

Un-IgnorableForces of Change

+ Speed

+ Breadth

+ Complexity

+ Relevance

+ C-Suite Worthy

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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

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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

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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

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Empowered & Skeptical “Consumers”

Exponential Advances inScience &

Technology

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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

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Exponential Advances inScience &

Technology

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Media Disruption & Redefinition

Unprecedented Platform Design Capabi l i t ies

EXCEPTIONAL CONTEXUALIZED

EXPERIENCES

Culture, Society & Our World

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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?

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Insight #1:

Traditional mindsets, including those about

advertising and marketing, must be challenged and

potentially changed.Our Insights

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Implications?

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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?

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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?

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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.

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Challenge everything. Leave no

sacred cows.

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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

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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

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Insight #2:

Shift your focus from media mix to portfolios of

all touchpoint orchestration.

All TouchpointOrchestration

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Customer Service

Website & Apps

Store Design

Package Design

Website & AppsProduct Design

Co- Do Good

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Questions and implications re Insight #2

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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

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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”)

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The Power of Content:R.A.V.E.S.

Valuable & Value Generating• Emotional

• Social

• Cognitive

• Mutually Beneficial

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The Power of Content:R.A.V.E.S.

Exceptional Experience• Design Thinking

• As good as your last, best

experience

• Or better…

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The Power of Content:R.A.V.E.S.

Shareworthy Story• Story telling

• Story doing

• Story co-creation

• The “Fame” Effect

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The Power of Content:R.A.V.E.S.

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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

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The Power of Context:M.A.D.E.s

Audience frame of mind

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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

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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

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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

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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

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Questions and Implications Re Insight #3

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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

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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

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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

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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

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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

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Insight #5

Adopt adaptive experimentation as your

business philosophy

Response

x$

Response

x$

½x 2x

X

X

X

- - - - -- - -

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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

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Insight #5

Experiment

Questions and implications for Insight #5

Reactions?

Amplifications?

Questions?

Applications?

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• 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?

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Action plans, including a

key experiment

Think like the best

UX designers, and as a disruptor.

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