Experience Advertising
As part of the Connection Strategy work I do at Huge, I've written a few documents that outline my point of view on how brands can engage people more effectively. This particular doc got a lot of traction when I wrote the first version several years ago, so i figured I'd share it. I've updated the charts to reflect most recent data. My background in comms planning and media helps provide some context for this approach - which proposes a theory that scaled communication, if planned properly by integrated teams, can come from highly creative, high-touch consumer experiences instead of replying on the conventional paid commercial advertising approach. This approach is now viable thanks to a few emergent factors: Technology has fundamentally shifted the media landscape, and our behavior within it. The demographic composition of the country is changing - with that, consumer attitudes, values and behaviors are evolving, and our relationships with brands are deepening; the age of the customer. Audiences are also outsmarting agencies and brands: filtering, avoiding, and blocking brand advertising. This means advertising reach, scale and impression tonnage are becoming less relevant - suggesting that conventional advertising is no longer the effective marketing lever it once was. Moreover, people are now willing to participate with brands via genuine, opt-in, high-touch experiences, made possible thanks to adoption of technology, bandwidth ubiquity and connected data. Such experiences become marketing assets in and of themselves, amplified by communication, replacing commercial ad-tonnage. To achieve this type of work, you need truly integrated disciplines that can build for the entire ecosystem; from products, technology, editorial, production, experiences, data, measurement and so on. If you're interested in doing this type of work, or if you'd like me to do a talk, then drop me an email.
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Experience Advertising
- 4. ‘Push’ marketing as we know it, exists largely because of TV. 0% 5% 10% 15% 20% 25% 30% 35% 40% 2014 2015 2016 2017 2018 % total time spent with media18+. TV MOBILE DESK/LAPTOP RADIO NEWSPAPERS MAGAZINES Source: eMarketer | mwaghorn@hugeinc.com
- 5. Yet this approach is becoming increasingly ineffective. $72.7bn US TV ad spend in 2017, a third of all US paid media. 85% Of people skip pre-roll ads after the first five-seconds. Of people recall less than five ads they’ve seen in the past week. 68% Source: PWC, ORC international 2016, Mediapost | mwaghorn@hugeinc.com
- 7. But that was back in 1999. Source Box Office Mojo, SNL Kagan, John Landgraf, KPCB, Forbes | mwaghorn@hugeinc.com
- 8. We’ve reached an inflection point. 0 5 10 15 20 25 30 35 40 45 50 TV Radio Print Other Digital US share of average time spent with major media 2011 - 2016 2011 2012 2013 2014 2015 2016 Source: eMarketer | mwaghorn@hugeinc.com
- 9. And digital ‘push’ advertising has a serious problem. | mwaghorn@hugeinc.com
- 10. The industry is beginning to take notice. It’s time to grow up, it’s time for action. There’s no good aspect to [ads], and anything they are doing now is hurting the user experience and the value of brands. Digital tools have arisen that do what advertising does, only better. The ad model has begun to fray. | mwaghorn@hugeinc.com
- 11. Meanwhile, US population demographics are shifting. 0 10 20 30 40 50 60 70 80 90 100 2014 2028 2036 2050 Projected population by generation Source: US CENSUS 2014, FUNG global 2017 Millions SILENT BOOMER GEN X MILLENIAL GENZ | mwaghorn@hugeinc.com
- 12. We are connecting to the world around us in new ways. We’re now willing and able to connect with brands in ways that go beyond the purchase of their base products & services. Technology connects us together in the ‘anticipated future memory’ - the experiencing self and the remembering self. We are connected to individual influencers who are steadily replacing conventional publishers as lifestyle authorities. | mwaghorn@hugeinc.com
- 13. We’re moving into the “Attention Economy”. Neural plasticity. Building new neural pathways to meet the needs of digital literacy over traditional literacy. Trading in memory functions and attention span to support information overload and multi-tasking; Bombarded with up to 3,000 brand impressions a day, human attention has become the limiting factor in our consumption of information. Attention scarcity. | mwaghorn@hugeinc.com
- 14. “If you don’t add value to people’s lives, I don’t really give two shits about your advertising.” Will.I.am | mwaghorn@hugeinc.com
- 15. Digital distinction will soon dissolve. As media & technology become more intimate, brands can now become active participants in our lives. Technology permeating our world. | mwaghorn@hugeinc.com
- 18. Dietrich Mateschitz. “It’s about philosophy and how to look upon the world, rather than pure marketing for consumer goods” | mwaghorn@hugeinc.com
- 19. Jumbo Wild 1% for the planet. “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Patagonia. | mwaghorn@hugeinc.com
- 20. It’s about experiences, designed simply to engage people in the brand’s philosophy, not to drive direct revenue. | mwaghorn@hugeinc.com
- 21. Common ingredients of Experience Advertising. 1. Sensorial. 2. Shareable. 3. Participatory. 4. Useful. | mwaghorn@hugeinc.com
- 22. Uber ice cream, NY. | mwaghorn@hugeinc.com
- 24. Marmite gene test, UK. | mwaghorn@hugeinc.com
- 28. Achieving credible scale through Experience Advertising. Brand Story Experience Bona fide Propagation Paid amplification • Sensorial • Shareable • Participatory • Useful Redistributed via digital ecosystem, gaining cultural momentum in the process. Paid media used to connect with new audiences, achieving incremental scale. | mwaghorn@hugeinc.com
- 29. How ExpAd differs from the traditional approach. Brand Story Experience Bona fide propagation Paid amplification Brand Story Ads Paid amplification Experience Advertising Tradition Advertising | mwaghorn@hugeinc.com
- 30. Flipping the ad-model. Genuine, participatory experience rooted in their brand story that doesn’t feel like advertising. Powered by technology and leveraging predictable social media behavior. Amplified to scale through paid. Example: Coca-Cola, global. | mwaghorn@hugeinc.com
- 31. Summary. 1. Technology has fundamentally shifted both the media landscape and human behavior. 2. The demographic composition of the country is changing. 3. Consumer attitudes, values and behaviors are evolving. 4. Our relationships with brands are deepening: the age of the customer. 5. Audiences are outsmarting agencies and brands: filtering, avoiding, blocking. 6. Advertising reach, scale and impression tonnage are becoming less relevant. 7. Conventional advertising is no longer the effective marketing lever it once was. 8. People now enjoy brands via genuine, opt-in, high-touch experiences. 9. Exceptional experiences are made possible thanks to today’s technology. 10.These experiences become marketing assets, amplified by communication, replacing commercial ad-tonnage. | mwaghorn@hugeinc.com
- 32. Done.Experience Advertising, Matthew Waghorn 2018