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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 [email protected] @jamie247
Franz Patzig Head of [email protected] @franz
