An inconvenient truth about advertising

The Inconvenient Truth About Advertising and its FutureEuropes Social Media Partner

Agenda:Quick IntroductionProblem: The Inconvenient Truth about Traditional AdvertisingDemonstration of Solution

We believe in Open Business

• At the heart of everything we do is Open Business• We believe in business open to it’s stakeholders.• By product and service development, to marketing and

customer care, the consumer becomes more deeply engaged.

• They become involved in the decisions that matter to them• They care more about the outcomes• They become more loyal • You, Your products and marketing are more likely to become

more successful• Social media means there are thousands of live consumer

conversations to discover, explore and connect with • Social technologies offer the ability to collaborative in a

scalable and more cost efficient way than ever before

Agenda:Quick IntroductionProblem: The Inconvenient Truth about AdvertisingDemonstration of Solution

Organisations are spending less on traditional advertising

And it’s not just because of the economy

Spend is up in new media such as social media / mobile but that’s just money chasing eyes

est. 0.07% Average CTR = #FAILand what’s the CR of TV and Print?

That Low CR = Spam

The inconvenient truth is..Traditional advertising has become significantly

less powerful. Why is that inconvenient? Because it used to

give me:

• Instant reach• Creatively I only needed one big idea• Once it was broadcast we could sit back

Why?

Attention economy crisis

Always been a problem

Advertising = Creative interruptions

But now Mass Media Fragmentation• There has been an explosion in media choice• The days of 2-4 TV channels that enjoyed the attention of

whole populations are gone• We now live in a world saturated with media. • More videos put on YouTube in the last year than made for

TV ever• Cable offer us 25+ channels• And we can even pick when we want to watch our shows

Personalisation: Feed Me!• Getting exactly what

I want• When I want• Where I want• How I want

And now permanently distracted

Avoiding ‘the pitch’ is easier

From Mass to Niche

PersonalisationDiversificationFragmentationThe only reach is Long-tail

• Behavioural targeting is not THE answer• Not banners, buttons or MPUs• Or ever more entertaining adverts / ‘virals’• Traditional broadcast / mass advertising can’t

work in a culture of niche• But here is a clue to what does..

Top reasons to go online:

#1 Social Media#2 Porn#3 News#4 Research#5 Buy Stuff

AKA People

All media is becoming socialised

‘Everything has an open comment box’

‘Everything is sharable’

In Social Media unlike in Broadcast Media nobody is looking at the stage they are looking at one another.

I like cheese I hate cheese

I like your tie

In Social Media - Peers are key for attention• When I can drown out noise that I find

irrelevant and focus in on my personal media the best way to reach me is usually by those ‘associated to me’ AKA my peers.

• 90% trust friends recommendation over everything else

• 71% of sales come from as a result of it

Before users were locally

Niche opinions were harder to find

Now: Globally Connected

With opinions

Connected to

Some are more passionate than others

Consumer PowerAnd usually they don’t choose your advertising

Ads may entertain but do they convince

Age of innocence lost

Age of Advertising Innocence is lost.. Forever

Is this a bad thing? No just inconvenient.

• Traditional advertising has largely been looking down the long end of a conversion funnel.

• Who now has budgets to spend that see over 75% waste almost every time?

• The more people that see it the more purchases you were likely to get. • Most people won’t be interested BUT some will. • Finding a new more efficient way to sell should be on the minds of every

business. • Advertising enjoyed and depended on mass media monopoly.• The fact is the rarely accounted for ‘friend recommendation’ has always

been the primary purchase decision maker.

Opportunity for Innovation?

Structural

Business Model

Experiential

Product

Disruptive

Application

Process

Marketing

Rev

enu

e G

row

th

Time

Disruptive

Agenda:Quick IntroductionProblem: The Inconvenient Truth about Traditional AdvertisingDemonstration of Solution

Disclaimer:

• Break BROADCAST format

• Warning you are now going to be made to TALK

We Declared & now We Listen• What was the role of advertising?• How did good advertising work?• Who strongly agrees or disagrees that..

Advertising needs to change?• What replaces it?• Will it disappear?• How can what replaces it be applied to your

business?

Some inspiration

Understand and

express your

Purpose

Discover and

introduce those who share your

purpose

Surface what the

group wants to

fix

Act to fix it

Better Fit Output

Engaged consumer

Deeper loyaltyGreater

P2P Marketing

Attracts more users more

ideas, potential new

customers

Private, Safer, faster; greater

control

OPEN

CLOSED

90:10 Platform Process

We believe ‘platform thinking’ is the replacement

Remember I’m telling you a story so you give me your money

• Small number of people. Lower likely conversion rate. But if I engage you, you could be more powerful than 500 attendees

• With an ‘experimental’ format I was worried about losing control of the message

• These are all the fears of a broadcaster

Understand and

express your

Purpose

Discover and

introduce those who share your

purpose

Surface what the

group wants to

fix

Act to fix it

Better Fit Output

Engaged consumer

Deeper loyaltyGreater

P2P Marketing

Attracts more users more

ideas, potential new

customers

Private, Safer, faster; greater

control

OPEN

CLOSED

90:10 Platform Process

We believe ‘platform thinking’ is the replacement

Be a Beta Businessand Beta is inviting

That which we create we embrace

We can’t stop talking about

We choose over all else

By being a platform business you save time & money in making and selling. You guarantee demand.

What are you waiting for?Contact:

Jamie Burke CEO 90:10 Groupjamie@ninety10group.comTwitter @jamie247

Franz Patzig Head of Germanyfranz@ninety10group.comTwitter @franz