Presentation given at the Inspire 2009 conference in Bucharest. Originally intended to be titled ´What if there was no TV´, during the preparation I noticed several trends that led me to change the title to Ádvertising is Dead´. Every new technology has a shorter curve from introduction to irritation. It´s time for a new approach, which I call the Attraction Model.
You can download this presentation over at www.slideshare.net/futurelab
I am available for speeches and presentations at your event.
8. 76% of consumers don’t believe that companies tell the truth in advertisements Yankelowich,2006 Last Year
9. “ You can’t bore people into buying your product – you can only interest them” Last Year
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11. “ 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
12. Advertising Myths 1. Frequency is mostly not a driver for action 2. There is no golden rule about OTS Last Year
23. Most influential information sources in purchasing electronic goods? (TOP 3) CMO Council’s Retail Fluency Report, 2005 FUTURE LAB What are we focusing on? Share of total adspend by medium (global) % 2008 forecast (March 2008) Newspaper Coupons 25 Internet 21 Product/Company Information 16 Retailer information 14 Other 14 Magazines 4 TV 4 Radio 3 Source % In-store Sales Associate 49 In-store demonstration 36 Word-of-mouth from family & friends 33
24. 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…
26. “ 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)
29. 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!
30. 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%
31. 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
44. 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.”
49. FREE TIX TO GREAT ADVENTURE Heard a rumor you can get 2 free tix to opening day weekend at Great Adventure amusement park 45000 tickets gone in 5 hours
57. How to control millions of inaccurate and divergent conversations ? YOU DON’T Consumers 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
66. 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 advertising Marketing Science Institute, 2006 1967 1983 2001 2007 1955 This is not exactly news....
68. Extremely unlikely Extremely likely NPS™= (Promoters-Detractors)/Total DETRACTORS PROMOTERS PASSIVES Net Promoter Score ™ is a registered trademark of Bain & Company, Satmetrix and Fred Reichheld HOW LIKELY ARE YOU TO RECOMMEND? The Power of Recommendation 0 1 2 3 4 5 6 7 8 9 10
You thought I came to tell about ‘no more tv’ But in preparing this I came to a different conclusion. Look at the following with me Last year we already said: