[digital marketing];[advertising is-dead]
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TRANSCRIPT
What if there were no more TV?
FUTURELAB
Outline speech Bucharest
Need kickass opener
Advertising is DeadFUTURELAB
Actually….
FUTURELAB
FUTURELAB
We are Futurelab
WE ARE FUTURELAB
We create new profit opportunities for our customers. Our innovations and methods allow:
• Marketers to become more effective & engaging.• Innovators to identify the next opportunity or
niche.• CEO‘s to connect their business to the customer.
In the process, we challenge every barrier to business success. We dislike writing reports, billable hours or elaborate processes.
Instead, we prefer to "get on" with making money for your business.
FUTURELAB
A flexible boutique: 2 partners – 3 support staff – 9 associates – 28 specialists/contributors
Athens – Barcelona - Brussels – (Bucharest ) – Johannesburg – Hamburg – Moscow – Kiev - Munich - Shanghai
Priviliged Relationships
Futurelab Structure
Last Year
76% of consumers don’t believe that companies tell the truth in advertisements
Yankelowich,2006
Last Year
“You can’t bore people into buying your product – you can only interest them”
Last Year
• Big Six study (US): People with DVR’s watch 12% more TV, yet 90% of them adskip (Germany : 88.2%)
• 78.2% of Germans are irritated by advertising, only 24% actually still watches it (GfK Marktforschung)
• 85% of Chinese stop watching TV during commercial breaks. More than half change the channel, while the rest do housework, eat, chat or use the bathroom. (McKinsey & Co.)
• In 1965, 80% of 18-49 year-olds in the US could be reached with three 60-second TV spots. In 2002, it required 117 prime-time commercials to do the same.” (Jim Stengel, Global Marketing Officer, P&G)
• A US hour of prime time TV carried 21 minutes of advertising, Late Night network shows like Leno or Letterman carry 31:27 (TNS Media Intelligence, Q1 2006)
FUTURELAB
The Consumer is Tuning Out
“Today's marketing model is broken. We're applying antiquated thinking and work systems to a new world of possibilities."
Jim Stengel, Global Marketing Officer P&G
Last Year
Advertising Myths1. Frequency is mostly not
a driver for action2. There is no golden rule
about OTS
Last Year
• 54% of US consumers avoids products & services which “overwhelm” with advertising (Yankelovich Partners)
Last Year
Share of Voice?
Advertising is a tax you pay for unremarkable thinkingRobert Stephens,
CEO, the Geek Squad
Last Year
• With total transparency, how can there be advertising?
• Shotcodes in stores in Japan, telling you where to go to get the product cheaper
• A fucked company example
Total Transparency
Prices aren’t what they used to be
Total Transparency
Lawyers
Lawyers
Doctors
Teachers
Most influential information sources in purchasing electronic goods? (TOP 3)
CM
O C
ounc
il’s
Ret
ail F
luen
cy R
epor
t, 20
05
Newspaper Coupons 25
Internet 21
Product/Company Information 16
Retailer information 14
Other 14
Magazines 4
TV 4
Radio 3
FUTURELAB
Source %
In-store Sales Associate 49
In-store demonstration 36
Word-of-mouth from family & friends
33
What are we focusing on?
Share of total adspend by medium (global) % 2008 forecast (March 2008)
Television37,8%
Radio8%
Internet9,7%
News-papers25,9%
Magazines11,7%
People who live near train lines find ways to adjust to the noise ...
Consumers have begun to treat encroaching advertising just like those trains.
Now…
Banner blindness
1998!
“Online video ads are quickly becoming the medium of choice to drive both brand awareness and sales.”(2007)
67% of marketers report they will increase their social media advertising budget in 2009
“With young adults now spending on average six hours a week gaming, advertisers should be excited at how well their messages were embraced and the brands positively perceived” (2008)
Text-link ads
Pop-ups/pop-unders
Rich media ads
Banner ads
Contextual targeting
Paid search ads
Email marketing-house list
Behavioral targeting
SEO
0% 10% 20% 30% 40% 50% 60%
0%
22%
38%
14%
31%
52%
47%
36%
33%
0%
15%
28%
12%
29%
49%
47%
34%
45%
23%
0%
7%
10%
21%
34%
42%
44%
57%
Online tactics in terms of ROI (2005-2007)
2007 2006 2005
Contextual advertising ...has just died
• Advertising is dead – long live marketing
Lets keep the patient alive a little longer
Procter & Gamble is placing radio-frequency identification tags on products at a Metro Extra retail store in Germany so that when a customer pulls the product off the shelf, a digital screen at eye level changes its message
At least be the first!
Marketing Sherpa Ad:tech survey
% told by agencies to begin/increase viral video spend
% of marketers advised by agencies to advertise in games/virtual worlds 62%
93%
% asked to start/increase viral marketing spend on social networks 87%
Lemmings?
Hmm – what’s this?
Naah, cant measure it
Isnt there a bit much?
Sooo 5 minutes ago
Hey, actually this is cool
The Advertising Technique Hype Cycle
Is it all over?
It’s only just begun
The Attraction ModelFUTURELAB
Attention Economy Reputation Economy
Relevance!
Reputation x Relevance x Engagement = $$$
Reputation
Relevance
Engagement
Reputation
Relevance
Engagement
The Attraction ModelFUTURELAB
ExperienceListeningCustomers
Reputation
perception
80% of CEO’s believe their brand provides a superior customer experience
8 % of their customers agree
(Bain & Company)
FUTURELAB
Online Reputation Romania
FUTURELAB
The online reputation is just the tip of the icebergBut it can crash your boat
FUTURELAB
Source: Forrester Technographics® - 2008
Because if you don’t listen...
So Listen!
Results 1 - 10 of about 11,600 from twitter.com for motrin.
“hell hath no fury like a mommyblogger
scorned”
“With regards to the recent Motrin advertisement, we have heard you.
On behalf of McNeil Consumer Healthcare and all of us who work on the Motrin Brand, please accept our sincere apology.
We have heard your concerns about the ad that was featured on our website. We are parents ourselves and we take feedback from moms very seriously.
We are in the process of removing this ad from all media. It will, unfortunately, take a bit of time to remove it from our magazine advertising, as it is on newsstands and in distribution.
Thank you for your feedback. It’s very important to us.”
Reputation
Relevance
Engagement
The Attraction ModelFUTURELAB
InsightCommunicationCommerce
Relevance
Understand what truly drives your customers
FUTURELAB
INSIGHT
• Podcast and map downloaded
Commercial – yet relevant
FREE TIX TO GREAT ADVENTUREHeard a rumor you can get 2 free tix to opening day weekend at Great Adventure amusement park
45000 tickets gone in 5 hours
Relevance of Commerce
Downsizing
Reputation
Relevance
Engagement
The Attraction ModelFUTURELAB
Engagment
• Funnel• Content• Recommendation
Move the funnelContentRecommendation
Engagement
IGNORANCE
AWARENESS
NEED
CONSIDERATION
TRIAL
PURCHASE
REPURCHASE
LOYALTY
UPGRADE
RECOMMEND
BRAND EXIT
(c) 2
007-
2008
, Fut
urel
ab –
Use
d w
ith P
erm
issi
on
Funnel
Buzzmarketing
Content wants to be free
How to control millions of inaccurate and divergent conversations ?
YOU DON’TConsumers are beginning in a very real sense to own our brands and participate in their creation … We need to begin to learn to let go.
A.G. Lafley, CEO and Chairman of P&G, October 2006(cc) Lynette Webb, 2006
‘Help us choose’
Let them improve your products
Let them build their own
Roll your own commercials
Second Life is soooo 5 minutes ago
What IS it good for ?
The Power of Recommendation
The Power of Recommendation
Word-of-mouth is 7x more effective than newspaper advertising, 5x stronger than a personal sales pitch and 2x as effective as radio advertisingMarketing Science Institute, 2006
1967 1983 2001 20071955
This is not exactly news....
How can we measure all this
0 1 2 3 4 5 6 7 8 9 10
Extremely unlikely
Extremely likely
NPS™= (Promoters-Detractors)/Total
DETRACTORS PROMOTERSPASSIVES
Net Promoter Score ™ is a registered trademark of Bain & Company, Satmetrix and Fred Reichheld
HOW LIKELY ARE YOU TO RECOMMEND?
The Power of Recommendation
Promoters make you more money- They spend more- They negotiate less- They stay longer- They are easier to service- They upgrade quicker- ...Slide: Bain & Company, official NPS(tm) presentation Fred Reichheld.
Net Promoter Score ™ is a registered trademark of Bain & Company, Satmetrix and Fred Reichheld
The Power of Recommendation
Activate your Fans
Must See
No, it’s not...
So get some people…
Who will be the First Penguin?
Where ARE the orcas?
• Traditional compensation & other systems stand in the way• Creative and media work in isolation• Lack of experience with new media (not everyone went
“dot-com”)• Venturing into uncharted territory = risky (even on a
personal level)• Nobody really knows how things will evolve
General Eric Shinseki, Chief of Staff, US Army: "If you don't like change,
you're going to like irrelevance even less.”
GO DO IT
• A deeper look at the model• How to improve the relevance of your mediamix• How to monetize WoM and Buzzmarketing• Social Networks more indepth• Net Promoter Score galore• Many many more examples and cases
Tomorrow
The Element of Surprise
Http://blog.futurelab.net
[email protected] if you want this presentation