Stop Wasting Money On AdvertisingHow the epicentre of marketing shifted from Madison Avenue to Silicon Valley

Paul Barter, December 2013

In the old world, you devoted 30% of your time to building a great service and 70% of your time to shouting about it. In the new world, that inverts.

Jeff Bezos

Half the money I spend on advertising is wasted. The trouble is, I don't know which half.

John Wanamaker

Today’s marketing world is broken… We are still too dependent on marketing tactics that are not in touch with today’s consumer.

Jim Stengel, Global Marketing Officer, P&G

Broadcasting an ad on television or in a newspaper is admitting you have no idea who your customers are.

Gary Loveman, CEO, Harrah’s

82% of TV adverts generate negative ROI.Robert Wollan, Nick Smith, and Catherine Zhou, Accenture

But whatabout

technology?

Today’s talk in one slidePromotional effectiveness

IT cost

First, a marketing review.

SegmentTarget

Position

ProductPricePlacePromotion

1950s 1970s

1995 2004

… 1930 1950 1980 1995 2000 2004 2012

Part of the mix can be cheap or free

Paid

Owned

Earned

A new lens on promotion

TrucksBottlesSigns

Social media presence+ all from before

Evangelical customersViral messagesQuantifiable word of mouth

Display adsSearch ads+ all from before

RadioTVPrintOut of home Flyers

Mass market+ all from before

Mailing listsLoyalty programs+ previous

Website+ previous

PAID OWNED EARNED

“Celebrity”/superstar influencers+ all from before

Word of mouth

More word of mouth

Email forwardsLinks to promotions

Today.

PAID

OWNED

EARNED

Onwards and upwards with the travel industry

Click

to be advertised at!

VW vs. Mercedes-Benz

Source: Naumi Haque

What to do

Source: T4G.com

What comes now?1. Make great stuff 2. Tell the story3. Paid, owned, earned4. Digitally savvy talent5. Listen, measure, respond

We are built on a solid foundation with great people who are creative, dedicated

and passionate about what they do.Paul BarterVice President, ResearchPaul.Barter@T4G.com@BarterPaul

Thanks!