the cold war between digital and traditional.. a prospectus of what will happen

History of cold war

History of traditional advertising

How digital ads started and where are we going

A Cold War is defined as a situation of tense relations and fierce competition between nations.

There is however no direct confrontation as in an all-out war.

Such a situation occurred between 1945 and 1991, involving the superpowers, the USA and the USSR.

The superpowers divided Europe into two.

Eastern Europe was led by Communist USSR while democratic USA controlled Western Europe.

In a Nutshell

Why did the Cold

War break out?

Wartime alliances

broke down

Feelings of

mistrust

Competing ideologies

Competing ideologies

An ideology refers to a set of ideas about how a society should be run.

In many ways, the Cold War confrontation between the USA and the USSR was a clash between their opposing ideologies.

USA

Communism

USSR

Democracy

Communism VS Democracy

Communism

The Communist Party rules the people. Communist Party members can be in the government. This government is considered a one-party dictatorship.

Democracy

People choose their government byvoting for the leaders they want. The leaders can belong to any party.

Who controls the society?

How should people live?

Communism

The community is more important than the individual. So the individual should put the needs of the community before his own.

Democracy

The individual has more rights and some of these rights are more important than the needs of the community. Such rights include freedom of speech and the press.

Communism VS Democracy

Crisis and Conflict: From a World War to a Cold War Copyright 2006

How should the wealth of the society be created and shared?

The country’s wealth is owned collectively by the society.

The Communist Party creates wealth by deciding what to produce. This is called a centrally planned economy.

Everyone should work and should get an equal share of the benefits of the society.

Communism

Communism VS Democracy

How should the wealth of the society be created and shared?

The country’s wealth is created by private enterprise and trade.

Businessmen and entrepreneurs create wealth by deciding what to produce. This is called market economy.

Some individuals may become wealthier than others. How wealthy one becomes depends on the individual’s skills as an entrepreneur or how well he invests his resources.

Democracy

Communism VS Democracy

Crisis and Conflict: From a World War to a Cold War Copyright 2006

Europe was divided

The Berlin Blockade 1948

NATO and Warsaw Pact were set up

The division of Europe into two spheres of influence forced both sides to set up military alliances.

In April 1949, the USA set up the North Atlantic Treaty Organisation (NATO) for collective security against any Soviet attack.

Similarly, the USSR set up an alliance known as the Warsaw Pact in 1955, uniting all Communist countries in Eastern Europe except Yugoslavia.

How did the Cold War affect the rest of the world?

The Cuban Missile Crisis

China joined

the Cold War

The Korean

War

Crisis and Conflict: From a World War to a Cold War Copyright 2006

China joined the Cold War

When China turned Communist in 1949, it became involved in the Cold War.

The USA felt threatened by the Communist alliance between China and the USSR.

The USA feared that the USSR might give China the technology to produce its own nuclear weapons.

Japan became the USA’s main anti-Communist ally

Due to the threat of Communism in China, the USA strengthened Japan’s economy and introduced democratic reforms.

Through this, the USA hoped to turn Japan into its main anti-Communist ally in the region.

Other than strengthening Japan by providing economic aid, new technology and new industrial equipment, the USA also managed to get Japan to allow it to station its troops in Japan.

USA‘s One China Policy

Due to unfriendly relations between the USA and Communist China, the USA adopted a One China Policy between 1945 and 1972.

The USA refused to recognise the People’s Republic of China’s (PRC) Communist government.

Instead, it recognised Taiwan (Republic of China) as the legitimate government of China.

Impact on Europe

Impact outside Europe

Germany divided

Europe Divided

Nato Warsw Pact

Marshall plan Truman Doctrine

Korea

Cuba

Increasing mistrust

Alliance Breakdown

Competing ideologies

The Cold War

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“If you would understand anything, observe its beginning and its development.”

- Aristotle

History of advertizing

How everything began...

Advertising Agency

Media Buying

Media Planning

StrategyCreative Concept

Account Management

Research

Media Plan

Account Mgmt

Creative

Research Strategy

Production

Media Planning /

Buying

Agency

Ground Zero

“You Can Have Any Color As Long As It Is Black”

World War I and II

1900 - 1940

1908, observations in Printers Ink:"The modern 'copy man' has to say things in a way that they have not been said before-because that is the only kind of talk that will nowadays attract attention."

Company’s trouble

A period of “experimental” discovery

1905: the University of Pennsylvania offered a course in "The Marketing of Products"1908: Harvard Business School opens1908: Northwestern University opens its School of Commerce, which will later become the Kellogg School of Management, home to influential marketing professor Philip Kotler

“ Never write an advertisement which you wouldn't want your family to read. You wouldn't tell lies to your own wife. Don't tell them to mine.”

1912

1923(Kodak)

1927

1886

1886

1880

1904

1914

1918

1937

1936

Marketing for the masses…

Marketing “theories”

More of the consumer viewpoint and of economic analysis were introduced.The concept of marketing was being reformulated.

Rise of MadMan

Leo Burnett, identified two schools of strategic thought in a Printers' Ink article:

1-Poster-style advertising2-Reason-why advertising

“Television is the triumph of machine over people.”

The birthday of the bathroom break.

July 1, 1941, the first day the Federal Communications Commission allowed TV stations to switch from experimental to commercial broadcasts. NBC New York affiliate WNBT becomes the first of 22 FCC licensees to air sponsored programming.

The birth of USP

The president of N.W. Ayer and Son observed in 1941 that advertising "cannot create a single point of superiority in a product or add a single virtue to its manufacturer. What advertising can do is to speed up the process of getting a good product well and favorably known."

Ayer & Son was an advertising agency founded in Philadelphia, Pennsylvania in 1869. It called itself the oldest advertising agency in the United States. Named after Francis Ayer's father N. W. Ayer, it ventured into advertising in 1884.

Hierarchy of needs

Maslow's Hierarchy of Needs model was developed between 1943-1954, and first widely published in Motivation and Personality in 1954. At this time the Hierarchy of Needs model comprised five needs. Maslow's most popular book is Toward a Psychology of Being (1968), in which more layers were added.

1950 1951

1951 1953

1954

1954

1956 - 1957

1955 - 1956

1951

1955

19541959

1954

1955

1956

1954 - 1955

1957

Question of “ethics”

Rise of cynicism

“What is the difference between unethical and ethical advertising?

Unethical advertising uses falsehoods to deceive the public; ethical advertising uses truth to deceive the public. ” Vilhjalmur Stefansson, 1964

First trial

In 1968, a creative team at BBDO, New York, slips some marbles into a bowl of Campbell's vegetable soup to keep the vegetables from sinking to the bottom. This seemingly innocent effort sparks a Federal Trade Commission probe and becomes the basis for the FTC's efforts to eliminate false ads with a practice that allows it to demand "corrective advertising" from an advertiser that has made a false claim.

1960

1960 - 1961

1962 - 1963

1964 – 1965

1966

1967

1968

1962

1961 - 1962

1960 - 1961

1961 - 1964

1960

1961 - 1962

1965 - 1967

“The battle is in the consumers mind”

A new approach: Positioning

Beginning in 1969 two young marketing guys, Jack Trout and Al Ries, wrote, spoke and disseminated to the advertising and PR world about a new concept in communications called positioning.

Brand image?

Lee Clow, in 1971: "Why isn't the persona of the brand considered a real difference? Is it because it's too esoteric?” معينة فئة على مقصور

Mystique?

As one wrote in 1971, "Research not only takes some of the mystique out of agency creative departments, it also gives the client more direct control over creative people."

19761972

1971

1971

1971

1970

1971

1975

1978

80’s

"You'll never look at music the same way again"

The search for “cool”

Emotion is the king!

Edward de Bono (1985)He noted: "Emotions are an essential part of our thinking ability and not just something extra that mucks up our thinking"

Invention of ROI

"I know that half of my advertising budget is wasted, but I'm not sure which half.“

John Wanamaker

Differentiate or die

Hal Riney, a creative director for the BBDO agency during the "creative revolution" of the 1960s, stated this point very clearly in 1982: '"Most of the time,' he says, 'the facts haven't done me a lot of good. It seems there's someone already using the same ones'"

Emergence of relationship marketing

CRMCustomer valueBrand loyaltyLong term brand investment

Consumer radar

Introduction of “guerilla” marketing methods.

1989

1984

1987

1987

90’s

“Just do it!”

Need for integration

Integrated efforts

Mark Tungate, the Paris-based author of Fashion Brands: Branding Style From Armani to Zara.

"Advertisers today can be more subtle because they are safe in the knowledge that a single image does not have to stand alone. The Web site and the store are equally parts of the brand experience. "

Long live consumerism

“It is our job to make women unhappy with what they have. ”

B. Earl Puckett, 1992

The new buzz!

Introduction of “viral” marketing

1998

1992

1991

1993

1994

1989

1991

1992

1992

1996

2000’s

And the era of “dialogue”…

Who is Generation Y?76 million people born between 1978 – 2000Millienials, Net Generation, Echo Boomers, Google Generation, iGenerationOngoing debate about where to begin and end a generation.

Who is Generation X AND Z ?

OLD MARKETING

PRODUCT

PACKAGING

DISTRIBUTION

CRM

ADVERTISING

CONSUMER

Wha

t’s N

ext i

n M

arke

ting

MODERN MARKETING

PRODUCT

PACKAGING

DISTRIBUTION

ADVERTISING

CONSUMER

CRM

What’s Next in Marketing

perception

80% of CEO’s believe of believe their brand provides a superior customer experience

8 % of their customers agree

(Bain & Company)

FUTURELAB

76% of consumers don’t believe that companies tell the truth in

advertisements Yankelowich,2006

I AM

TH

E M

ED

IA

ONLY 14% TRUST ADS

CR

EA

TIN

G B

UZ

Z

69 % INTERESTED IN ADBLOCKING TECHNOLOGIES

CR

EA

TIN

G B

UZ

Z

LAW OF FEW 10% INFLUENCE PURCHASING BEHAVIOR

OF OTHER 90%C

RE

AT

ING

BU

ZZ

2001

2007

2005

2004

1999

20062005

Agency landscape todayMedia Agency

Media Planning

Media Buying

Digital Agency

SEM Display

Creative Agency

ResearchSpecialist

PR Agency

Strategy

PlanningAgency

Display

SEM

Buying Agency

Full ServiceDigital Agency

DigitalPlanning

DigitalBuying

Creative / Web

Design Strategy

OutdoorAgency

Events Agency

Agency landscape today

Media Agency

Media Planning

Media Buying

Digital Agency

SEM Display

Creative Agency

ResearchSpecialist

PR Agency

Strategy

PlanningAgency

Display

SEM

Buying Agency

Full ServiceDigital Agency

DigitalPlanning

DigitalBuying

Creative / Web

Design Strategy

OutdoorAgency

Events Agency

Agency Network A Agency Network B

The Big 6: Global networks and their agencies

Note: Agencies shown are just a representative selection

The Big 6: Global networks and their agencies

History of Digital

https://www.iwhois.com/oldest/

Browser Timelines

http://www.blooberry.com/indexdot/history/browsers.htm

Important People

Tim Berners-LeeInventor, WorldWideWeb Vint Cerf

Father of the Internet Marc AndreesenMosaic Browser, Netscape

growth

2007: 108,810,358 web sites(Netcraft Survey)

2013

http://youtu.be/OOT1lwVWBB8

http://news.cnet.com/8301-1001_3-57609100-92/8-myths-about-wearable-tech/

Convergence

Five converging forces – mobile, social media, data, sensors and location – are reshaping our lives and will have profound effects on each of us individually, in the workplace and in our society at large during the coming decade

http://www.amazon.com/Age-Context-Mobile-Sensors-Privacy/dp/1492348430

The web

the Webs

Web 1.0: static pages

Web 2.0

Web 3.0

Web ???

Web 1.0: static pages

Web 2.0: dynamic content & social networking

Web 3.0

Web ???

Web 1.0: static pages

Web 2.0: dynamic content & social networking

Web 3.0: semantic tagging of content

Web ???

The bubble

Nasdaq Composite

So ,

content

advert

audience

RelevantMeasurableValuableEntrepreneurial

EthicalOpenProfessionalCourageous

Tomorrow’s Communicator

Digital ads eco-system- Display

• Clients are beginning to place less importance on the type of agency handling their business and more on their creativity and quality of work (Parekh, 2008)

• Another factor in comparing traditional to digital agencies is their size. In a 1997 study done by Schultz, he found that small agencies contributed more time developing integrated marketing communications with their clients than large agencies

• A lot of the old, bigger agencies are trapped in their old structures, so it’s really about who has the best talent” (Parekh, 2008)

Digital versus traditional agencies

• Developing a clear brand strategy first and using it to drive each discipline’s work is important in creating effective IMC campaigns (Liodice, 2008)

• The synergy created by IMC requires strong coordination among diverse agencies (Ewing, 2000)

• Lack of strategic consistency across communication disciplines and entrenched silos within marketing organizations and agency partners are barriers to successful IMC (Liodice, 2008)

• Clark Kokich, CEO of Razorfish, was quoted in a 2008 article by Parekh stating, “ten years from now, all agencies will be digital agencies” (Parekh, 2008)

Digital versus traditional agencies

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Thank you