[Digital marketing];[advertising is-dead]

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