1. Advertising & Media in The Era Of Convergence - 4 Major Trends This note is a representation of trends visible all around us. It is not the result of targeted research. ThinkPLANK, 2010 Thought Point
2. Telescoping AIDA: Right Now Right Here AWARENESS*INTEREST*DESIRE*ACTION Traditional AIDA model telescoped time to action much less than before Context aware offers: messages that reach you when you’re in a store. “Bluecasting” Mobile – individualized, personal, location aware messages. Everywhere is a point of sale – complete the transaction wherever you are. Reduction in pure “brand” awareness advertising for many categories Example: Shazam – you can hear a song for the first time, like it, find out about it, and buy it. End to end – 3 minutes Media as retail – rather than driving consumers to retail, media will become retail outlets Conversely, retail will become the point of advertising more than pure media How much of your advertising is linked to Calls to action? POS Opportunities? And how much is a dead end? AWARENESS*INTEREST*DECISION*ACTION
3. PRODUCT*INFORMATION*TRANSPARENCY*TRUST*SOCIALIZATION Goodbye Persuasion, Hello Socialization Information Erosion of trust across the board Politicians/ bankers/ advertising PR needs a makeover Socialization, not spin Who, apart from you, is talking about your brand? Information abundance Is it the right information? Is it yours? Vonage (VOIP) - $ 185 million online advertising in 2007 (3rd highest online advertiser) Revenues 2008: 900m, 2007: 800m, 2006: 610m – was it money well spent? Simply shifting ad dollars online isn’t going to work Product Transparency Socialization Trust Traditional TV advertising to become one-third as effective by 2010 compared to 1990 - McKinsey Where is your brand on the path to Socialization? Where has it stalled?
4. Disinter-media-tion ADVERTISING WILL MORPH; MEDIA WILL STRUGGLE Interruptive, Media Driven Model Message becomes the medium TFL campaign to be worked into Sofia’s Diary on Bebo Ads delivered from Set Top Boxes, based on location , rather than with the broadcast stream; Ads to be delivered from mobile phones From Media based ads to Device based ads Decline of Media incomes leads to innovation Flight of the premium customers Flight of the classifieds, decline of print, radio, music. Will Television follow? Online ads going to Google, not to traditional advertising models. Media will need to innovate. Product placements, brand-led content, and more. E.G. Spotify – premium service without ads. Ads seen as disruptive/ interruptive The traditional media model is “bankrupt, unviable, finished” - David Montgomery, CEO, Mecom How good is your innovation engine as a media business? Are you building the future? Or Living in the past?
5. Successful Old World Models Will Be Even More Successful, For Now Successful “old-world” models get disproportionately rewarded ITV/ BBC Price of live sports seen by 19.2 m on TV estimated $ 30m + revenues Branding Life : 6.6 million Man United t-shirts sold every year, become “Human Billboards” for AON 200 m on you-tube – little or no revenues! Life is: global, post-national, digital, multi-screen, information rich, connected... Is your brand?
6. Thanksved@thinkplank.com ThinkPLANK helps customers negotiate the Digital Convergence domain and make sense of trends, business models and processes to make it all work. Warning: None of these changes are overnight changes. Like the ageing process – you can’t spot the changes overnight. But you can be sure they’re there. “To the football audience, a big TV spot is only a moment long, but an intriguing series of films, clues, product previews and digital tools can sustain this consumer and entice them to engage with our product and brand and put us in their consideration set for purchase” Eric Liedtke, senior vice president of brand marketing for Adidas