THE FUTURE OF ADVERTISINGSOME THOUGHTS FROM THE PRESENT TO PREDICT THE FUTURE OF BRANDS COMMUNICATION

ARE YOU CRAZY OR SOMETHING?

SERIOUSLY, FUTURE PREDICTIONS?

BUT I HAD TO DO THIS PRESENTATION FOR A CONFERENCE. I PROMISE THIS ONE IS INTERESTING, SO KEEP READING!

YEP, I KNOW, SORRY IN ADVANCE FOR THIS

LET’S BEGIN ASKING SOME COLLEAGUES FOR THEIR OPINION

NO WORRIES, WE ARE PROFESSIONAL GUESSERS...

84%

72%

71%

OF CONSUMERS SEE ADVERTISING AS A PART OF EVERYDAY LIFE

OF CONSUMERS THINK ADVERTISING IS AN IMPORTANT PART OF CULTURE

SAY ADVERTISING MAKES THE WORLD A BETTER PLACE

Source: The truth about advertising. McCann truth central 2013. 1000 consumers.

OF CONSUMERS SAY ADVERTISING GIVES THEM SOMETHING TO TALK ABOUT

OF CONSUMERS LOVE ADVERTISING

FEEL IF THERE WERE NO ADS, THE WORLD WOULD SEEM A STRANGER PLACE

57%

40%

63%

WE DA FUCKING BEST!UNCORK THE BOTTLE AND LET’S GET DRUNK, WE DESERVE IT

THINKS ADVERTISEMENTS ARE TOTALLY TRUE

DECREASE IN TRUST IN ADVERTISING IN JUST TWO YEARS (LOWEST IN HISTORY)

HALF OF ALL KNOWLEDGE ABOUT A BRAND IS HELD BY JUST 20% OF ITS BUYERS

OF 200 BRANDS STUDIED ONLY ONE SHOWED A LEVEL OF ENGAGEMENT OVER 2%

FROM 46 ANALIZED CATEGORIES, THERE IS LACK OF DIFFERENTIATION IN 40 OF THEM

TRUST IN BRANDS HAS DECREASED FROM 52% TO 25%3%

-24%

20%

25%

2%

13%

Source E: Karen Nelson-field & Jennifer Taylor, ‘Facebook fans: a fan for life?’, Admap, may 2012. Seen in Martin Wiegel’s “How to fail”

Source A: Lab 42 survey 2013. 500 consumers.Source B: Nielsen trust report 2012.Source C: Enni Romanuik, Byron Sharp: ‘where knowledge of your brand resides: the Pareto share of brand knowledge’. Seen in Martin Wiegel’s “How to fail”Source D&F: John Gerzema, The brand bubble.

WHAT THE HELL IS GOING ON HERE?

DON’T WORRY GUYS, THE INTERNET WILL SAVE US!IS THE MOST POWERFUL MEDIA TO CONTACT WITH CONSUMERS, RIGHT?

65% OF CONSUMERS

CHANGED THEIR OPINION ABOUT A BRAND AFTER A

DIGITAL EXPERIENCE96%

OF THEM

WHERE INFLUENCED

WHEN DECIDING ON A PURCHASE

Souce: Conversation LLC, Marketing 2020: The future of advertising

BUT TRUST ONLY COMES FROM RECOMMENDATIONS (90%)

Source: The Nielsen Company. Global survey of over 25,000 consumers online across more than 50 markets

AND CONSUMER OPINIONS (70%) RATHER THAN ADS IN SEARCH ENGINE RESULTS (41%)

AND THE AVERAGE CLICKTHROUGH RATE OF DISPLAY ADS IS 0,1%

Source: Doubleclick by Google.

IN OTHER WORDS...

YOU’RE MORE LIKELY TO COMPLETE A NAVY SEAL TRAINING THAN CLICK A BANNER AD

Source: Solve Media

1.000TWEETS EVERY SECOND

684.478ITEMS SHARED ON

FACEBOOK EVERY SECOND

48 HRS.OF VIDEO UPLOADED TO

YOUTUBE EVERY SECOND

3.600PHOTOS SHARED ON INSTRAGRAM EVERY

SECOND

OK, THEN SOCIAL MEDIA IS THE FUTURE FOR BRANDS!THE BIGGEST SHIFT SINCE THE INDUSTRIAL REVOLUTION COMES TO THE RESCUE!*

Source A: Buzzz Social Media: The social media revolution 2014Source B: Mist Media Group: Social and digital media revolution statistics 2013

0.5% PROPORTION OF FANS ARE TALKING ABOUT

A BRAND ON FACEBOOKSource: Karen Nelson-Field & Jennifer Taylor, ‘Facebook fans: a fan for life?’, Admap, may 2012

1 IN 1,000,000 ODDS OF A PERSON VIEWING YOUR CONTENT ON YOUTUBE

Source: wistia.com. Seen in Martin Wiegel’s ‘How to fail’

ONLY 3% RECOGNIZES THAT SOCIAL MEDIA HAS INFLUENCED THEM TO TRY A NEW PRODUCT

EMAIL IS NEARLY 40 TIMES MORE EFFECTIVE

TO ACQUIRE CUSTOMERS THAN FACEBOOK AND TWITTER COMBINED

FACEBOOK'S PAGES PLATFORM REACHES ONLY 6%

THE BRAND'S FOLLOWERS

Source: Bob Hoffman - The golden age of bullshit

Source: Time Magazine, ‘The Free-Marketing Gravy Train Is Over on Facebook’

Source: Bob Hoffman - The golden age of bullshit

2010: PEPSI CANCELLED ALL ITS TV AND SUPER BOWL ADVERTISING TO INVEST EVERYTHING ON PEPSI REFRESH PROJECT...

COSTS: BETWEEN 50 - 100 $M.

DROPPED FROM THE 2ND-BEST

SELLING SOFT DRINK IN THE US TO 3TH

3.5 MILLION FACEBOOK LIKES

24.000 TWITTER FOLLOWERS

5% LOSS IN MARKET SHARE

Source: Pepsi Refresh Project Study caseSource: Bob Hoffman - The golden age of bullshit

LESSON LEARNED: TRENDS CAN KILL YOUINTERNET, SOCIAL MEDIA, MOBILE, WEARABLES, 3D PRINTING OR IMMERSIVE EXPERIENCES... NO TECHNOLOGY REPLACES THE CREATIVITY

‘EVERY YEAR THERE IS A NEXT BIG THING. AND FOR THE PAST 10 OR MORE YEARS, WE HAVE BEEN SEEING ALMOST ONE EACH YEAR.’

Source: Rei Namoto - ‘Why ad agencies should act more like tech startups’

THE FUTURE IS IMPOSSIBLE TO PREDICT

NOT EVEN ROBERT ZEMECKIS COULDHEY DOC, ALL OF THIS WAS SUPPOSED TO BE INVENTED IN 2015?

FUCK THE EXPERTS & GURU’SNOBODY KNOWS SHIT

BUT HEY, LET’S AT LEAST PLACE SOME BETSSOME PREDICTIONS THAT WILL NOT ELIMINATE THE RISK, BUT WILL INCREASE THE ODDS OF SUCCESS. NO FEAR, HERE WE GO!

1

BRANDS WILL FOCUS TO ENTERTAIN LIKE NO BRAND HAS ENTERTAINED BEFOREDEFEAT THE INDIFFERENCE BY MAKING THINGS PEOPLE WANT INSTEAD OF MAKING PEOPLE WANT THINGS.CONSUMERS WILL ONLY TOLERATE ADVERTISING AND ITS INVASION OF PRIVACY WHEN IT IS ENTERTAINING OR USEFUL.

In a stressful society, entertainment is now an important added value

Source B: Tom Morton in http://wfoa.wharton.upenn.edu/perspective/tommorton/

•

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Source A: Mark Earls and John Willshire in ‘The future od advertising’

2

STORYTELLING WILL EVOLVETO STORYDOINGEVERYONE IS TELLING STORIES NOWADAYS. CREATE EXPERIENCES THAT DEMONSTRATE YOUR BRAND PURPOSE AND INVITE CONSUMER PARTICIPATION. ADD CREATIVITY TO EXPERIENCES WITH THE OBJECTIVE OF HAVING A SPACE IN CONSUMERS CONVERSATIONS, NOT ONLY IN SOCIAL MEDIA, BUT IN EVERY MEDIA.

Credits B: Jesús Melero’s Planning Manifesto

Trust in ideas that make stories & find stories that grow ideas.•

Credits A: Bart Muskala

•

3

GOODNESS STRATEGY IS NO LONGER ENOUGH. BRANDS WILL NEED TO FIND THEIR PURPOSE AND MAKE IT TRULY STRATEGICOVERCOME EXPECTATIONS, SURPRISE AND IDENTIFY PEOPLE WHO BELIEVE WHAT YOU BELIEVE. THE GOODNESS STRATEGY IS A TREND NOW, BUT WILL BE A NECESSITY TOMORROW. BUT BE CAREFUL, 2015 WILL BE THE YEAR OF ‘PURPOSE FATIGUE’. BE SURE THAT YOUR PURPOSE IS AUTHENTIC, LIVING THROUGHOUT THE WHOLE BUSINESS, NOT ONLY ON THE MARKETING SIDE.

Source B: Walter Susini’s conference at El Sol 2014: ‘We are all Gabo’s sons’

According to Walter Susini, brands with a deeper social purpose showed performance improvements of up to 350% •

•

Credits A: Luis Miranda

4

95% of the downloaded apps are abandoned within a month

JUST BECAUSE YOU WILL BE ABLE TO MAKE SOMETHING DOESN’T MEAN YOU HAVE TO MAKE ITWITH MOBILE & SOCIAL MEDIA WE HAVE MORE WAYS TO CONTACT AND INTERACT WITH CONSUMERS THAN EVER BEFORE. THIS DOESN’T MEAN THAT YOU WILL SELL MORE WITH THESE TOOLS, AND MORE IMPORTANT, THAT CONSUMERS WANT TO INTERACT WITH YOUR BRAND THROUGH THEM. MOBILE WILL BE ONLY PROFITABLE FOR A VERY FEW BRANDS.

Source: Robert Gary, Nuance.com. ‘Why 95% of Mobile Apps are Abandoned— and Tips to Keep Your Apps from Becoming Part of that Statistic’

•

5

THE BIG DATA STRATEGY WILL BE THE HOLY GRAIL FOR BRANDSTHE ABILITY TO INFER A PERSON’S CONSUMER HABITS FROM THEIR MEDIA HABITS AND SERVE MESSAGES ACCORDINGLY WITHOUT LOSING THE HUMAN TOUCH AND CREATIVITY IS LIKELY TO BE THE MAIN GOAL OF BRANDS IN THE NEXT YEARS.

Integrating left and right brained approaches (data+creativity) into a unified whole will be the battlefield.

Source A: Tom MortonCreadit B: Mark Barden in Medium

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6

THIS IS ABOUT TRIAL AND ERROR. THAT’S WHY AGENCIES WILL EMBRACE THE ‘LEAN MODEL’.

‘A BRAND IDEA NEEDS TO BE LEAN AND AGILE. HERE THE LEAN MOVEMENT COMES TO THE RESCUE. THIS MODEL HELPS QUICKLY AND INEXPENSIVELY DEVELOP PRODUCTS/SERVICES PEOPLE WANT. INTRODUCE THE IDEA WITH THE MINIMUM VIABLE THINKING AND WAIT FOR FEEDBACK FROM THE CLIENT’. IMPROVE THE IDEA. INTRODUCE IT AGAIN. KEEP THE LOOP GOING ON. THIS IS A PROCESS THAT IS ALREDY BEING USED IN SOME AGENCIES AND THAT WILL BECOME MAINSTREAM DURING THE NEXT YEARS.

‘The agencies that incorporate Lean methodology and go through a build-measure-learn feedback loop will become the industry leaders’

Source: Andrew Cole - Lean advertising & the age of disruption

•

7

CO-CREATION: A POWERFUL WEAPON FOR BRANDS THAT IS GROWING UP REALLY FAST

IT IS ALREADY A REALITY (BURBERRY IS THE PERFECT EXAMPLE) BUT CO-CREATION WILL BE ONE OF THE MOST EFFECTIVE WAYS TO FULFILL THE CONSUMER DEMANDING OF INDIVIDUALIZED EXPERIENCES. ‘CO-CREATION INVOLVES A COMMUNITY OUTSIDE THE COMPANY IN THE IDEATION PHASE OF A NEW PRODUCT/SERVICE DEVELOPMENT.’

Co-creation is also happening between tech companies (Innovation Partnerships), who open the code of their products to be developed and improved by others

Source A & B: Stephen Benson - Co-creation: the pathway to innovationCredits C: Luis Miranda interview in Medium.com: ‘demonstrate your value rather than talking about it’

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8

TRADITIONAL MEDIA WILL HAVE THE SAME WEIGHT FOR BRANDS‘DO THIS EXERCISE: GO TO THE SUPERMARKET AND FIND A BRAND THAT WAS CREATED ENTIRELY BY ONLINE ADVERTISING.’IT IS NOT ABOUT THE CHOICE BETWEEN TRADITIONAL OR NEW MEDIA, IT IS ABOUT THE COMBINATION ACCORDING TO YOUR OBJECTIVES: TRADITIONAL MEDIA WILL CREATE DEMAND FOR YOUR BRAND AND DIGITAL MEDIA WILL FULFILL THIS DEMAND. ANY MEDIA WILL CHANGE THIS. PLEASE, STOP TRYING TO KILL TV.

Facts: during the 3rd quarter of 2013, the guy on the right saw the 97% of all video content on TV and 3% on Internet.

Source A & B: Bob Hoffman- the golden age of bullshit

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9

Source B: Grant McCraken - ‘Chief Culture officer’

Mark Barden

THE MAIN ILLNESS FOR BRANDS IN THE FUTURE WILL BE THE DISCONNECTION FROM CULTUREGREAT BRANDS ARE LARGELY A MANIFESTATION OF CULTURE. BRANDS LIKE ABERCROMBIE & FITCH, LEVI’S OR ADIDAS ARE LOSING RELEVANCE BECAUSE THEY SUFFERING ARRESTED DEVELOPMENT AND NO LONGER CAPABLE OF CAPTURING PEOPLE’S INTEREST OR SURFING CULTURAL WAVES. MORE THAN EVER, A BRAND WILL NEED A SOCIAL AND CULTURAL IMPACT AND NOT ONLY BE RELEVANT FOR A SMALL GROUP OF PEOPLE. CULTURE EXPERTS WILL BE MORE NECESSARY THAN EVER.

Culture is changing faster than ever. Consumers can be part of diverse groups and ethnics. Brands need cultural experts to make brands relevant.

Source A: NIgel Hollis - ‘the rise and fall of Abercrombie & Fitch’

••

NOW LOOK AT THIS LIGHT AND FORGET EVERYTHINGNOBODY KNOWS THE DAMN FUTURE

ONLY ONE PREDICTION WILL BE 100% TRUE...

GO BACK TO THE BASICS: THE POWER OF CREATIVITY WILL ALWAYS REMAIN AS THE KEY FACTOR OF SUCCESS

SOCIAL NETWORKS, APPS, INTERACTIVE TECHNOLOGY... ALL ARE THE EXPRESSIONS OF A BASIC HUMAN NECESSITY: COMMUNICATION. THIS IS SOMETHING THAT HAS BEEN HAPPENING SINCE THE BEGINNING OF ADVERTISING, BUT THE ONLY WAY TO BE IMPORTANT AND RELEVANT TO PEOPLE’S

LIFE IS TO DO REMARKABLE WORK. YOUR BRAND DOESN’T NEED MORE FANS, ENGAGEMENT OR RELATIONS. YOUR BRAND NEEDS MORE GOOD IDEAS.

OVERCOME THE CONSUMER’S INDIFFERENCE WITH AWESOMENESS AND YOU’LL WRITE THE FUTURE INSTEAD OF PREDICT IT

Credits go to you here, Martin!

•

THIS PRESENTATION HAS BEEN BROUGHT TO YOU BY:

AGUSTIN SORIANO | STRATEGY DIRECTOR

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