The Death Of Advertising: Omexpo Madrid 2010
64
Ninety10Group.com The death of advertising? If you landed in a world without advertising today, would you reinvent it? Ninety10Group.com
-
date post
22-Oct-2014 -
Category
Business
-
view
11.314 -
download
3
description
If advertising didn't exist today, would you reinvent it? 90:10's Jamie Burke and David Cushman think too much digital tech and innovation has been focused on making a better message when what we should be doing is making better things. Is it time to end the insanity of repeating the failed experiment of advertising and to start creating platforms for change.
Transcript of The Death Of Advertising: Omexpo Madrid 2010
Ninety10Group.com
The death of advertising?
If you landed in a world without advertising today,
would you reinvent it?
Ninety10Group.com
Ninety10Group.com
Who are we?The 90:10 Group is a global business consultancy which helps brands and media owners deliver business innovation through social technologies
• Jamie Burke (@jamie247) is its CEO. His background is in digital advertising, social media and as a digital entrepreneur.
• David Cushman (@davidcushman) is MD with 20+ years experience in traditional and social media. He’s the author of The Power of the Network and the blog FasterFuture.blogspot.com
Ninety10Group.com
• All media that is a growing media invites the user into its creation and distribution. It is a social media.
• That which isn’t is slowly dying (becoming less relevant)• Advertising money has followed the users from broadcast media to these
new and more social medias• So has the ineffective mass advertising model• In a peer-to-peer (P2P) world this is even less relevant• Social media actually offers the opportunity to form relationships
between an organisation and its customers.• This creates new and more valuable opportunities for ALL parties (media
owner, user and previously advertisers).• We’ll ask: If you landed in a world without advertising today, would you
reinvent it? And if not what would replace it?
We’re here to tell you...
Ninety10Group.com
Why is it dying?
Economic Media
Don’t be fooled economic problems are just exaggerating a bigger disruption in media
Ninety10Group.com
Socialisation of Media• Globally more time is spent with online than with any other media (IDC 2008) • This is now true in Spain, too (as of Feb 2010)• All Top 20 media online is social in some form...
It can be shared, commented on or has been created by users• Google’s search results are dominated by Wikipedia, blogs and increasingly Twitter.
They now have launched Google Social Search.• Almost every website has a comment box• Every TV and radio show has an official Facebook Fanpage and many unofficial
communities• News is reported faster via Twitter than by the BBC• More UGC video has been uploaded to YouTube in one year than has been broadcast
by TV, globally, EVER• Almost every computer game in the last year released by major studios, has some
kind of online multi-player and social element to it. MMOPRG Massively multiplayer online role-playing games has become a global billion dollar industry.
Ninety10Group.com
Traditional BroadcastMedia
(TV / Print)
Social Networks Mobile?Search
Ad money and method follows eyeballs..
Online AdFormats
But is the improvement more than increment?
Mass Market AdvertisingPractices
Ninety10Group.com
The Best of Digital?
Even video combined with flash, still 97.4% waste
Ninety10Group.com
With Behavioural Targeting?• Industry CTR = 0.06% - 0.17% is low• Let’s be generous and call the average 0.12%• For every 1,000,000 Impressions that’s 12,000 Clicks • That’s 988,000 people who you spammed and 98% of the
clients budget wasted.• Re-Targeting only improves this on average by max of 0.05%
(2009 offmaddissonave)• ValueClick report 98% of people leave a site without
converting and the average user needs 7 different contact points before completing a purchase.
• So you could argue you actually need 7 times the impressions.
Ninety10Group.com
Search?• On average, Adwords accounts will have
a CTR of around 2%.• E-commerce sites might have an
average around 6%. • Accounts where a company only bids on
terms related to their trademark might have 15%.
• In general Google AdSense generates around $2 and $3 CPM on an average with CTR – 1-5% (SEO World)
• But Google don’t publish figures (why?)• Natural Search: Google and MSN just
integrated social into their results so SEO and gaming the system will become secondary to real PEOPLE
by pasukaru76
Ninety10Group.com
The clever are socialising but not REALLY innovating..
Advertising such as PPC Remains?
Ninety10Group.com
Social Networks?• News Corp reports $203 Million Loss on
MySpace Writedown (Aug 2009)• Twitter hasn’t made a penny.. Yet.• In 2010 Facebook will account for nearly one-
quarter of all social network ad spending worldwide (Source Vitrue SRM Findings) and still only just broke even on August ’09
• But that’s just ad money following eyeballs.• Value is still low with CTR on ads estimated to
be between 0.01%-0.05% (Business Week)• As brands try to build communities on fan
pages via Wall Posts it can raise to around 6.5%. There’s a clue in that.
• But the only networks to make money are via virtual goods (VirtualTencent.com) 1 billion in 2009 (There is a clue in that too)
Ninety10Group.com
Mobile• Some people will currently pay for the
privilege of content delivered to their handset but soon we will take this for granted. It will be expected.
• Content will become increasingly user generated
• Geo-targeting around UGC will increase CTR and CR but... Even Blyk failed
• The only ones making real money are those selling ringtones ($750 million, CNN Money), games and Apps ($250 million in Dec 2009, Apple)
• Apple’s App Store – hasn’t been about advertising. It’s delivered function, utility, fun and innovation
Ninety10Group.com
Insanity
• We move from media to media and repeat the experiment of advertising.
• The Tech gets better and better yet the experiment continues to fail.
Ninety10Group.com
This is not a blip• This is not cyclical – it is structural• The way information is created,
published and distributed has changed.
• The terms and conditions of the way you were able to engage with consumers have changed. Forever.
• You can’t apply traditional advertising models to the social space.
• What worked for mass media does not work in the peer to peer realm of social media – where people talk to each other...
Ninety10Group.com
Hugh McLeod: GapingVoid.com
Ninety10Group.comApr 7, 2023 16
Social Media: is everybody’s media• Digitally enabled peer-to-
peer networks• From email and sms to
Tuenti and Twitter• Distribution is by people to
people• Content is by people to be
shared with other people• POWER! It’s shifted from
the centre to the edge – from you to them...
Ninety10Group.com
Where people have access to social media they use it. And they don’t stop
The more we talk to and hear from our friends, peers, people we trust, the less we need central authorities broadcasting a lowest common denominator version of events Across Europe, the more people participate in social media, the less they consume broadcast media. Global Time Spent on Social Media Sites is up 82% Year on Year (Nielsen)
Ninety10Group.com
A different animal: Then sheep, now wolves
By Bertoz By Tambako
Easy to herd Hunt in Packs
Ninety10Group.com
What worked in the old world won’t work in the new
Ninety10Group.com
YOU SPOKE THEY LISTENED
Ninety10Group.com
You were in control
• You made the content• You distributed the content• You controlled the user experience
Ninety10Group.com
• Who gets to control production of content now?
Ninety10Group.com
• Who gets to control production of content now?
Anyone and everyone
Ninety10Group.com
• Who gets to control production of content now?
Anyone and everyone• Who gets to control distribution of content
now?
Ninety10Group.com
• Who gets to control production of content now?
Anyone and everyone• Who gets to control distribution of content
now?Anyone and everyone
Ninety10Group.com
• Who gets to control production of content now?
Anyone and everyone• Who gets to control distribution of content
now?Anyone and everyone• Who gets to control the user experience
now?
Ninety10Group.com
• Who gets to control production of content now?
Anyone and everyone• Who gets to control distribution of content
now?Anyone and everyone• Who gets to control the user experience
now?The user controls their own A-Z journey
Ninety10Group.com
EVERYONE IS AN
ADVERTISER NOW
Ninety10Group.com
We are in the world of the ever lengthening long tail
Ninety10Group.com
You can’t buy space in conversations
They can
Here’s how
http://flickr.com/photos/caribb/
Ninety10Group.com
You can’t target every community of purpose.
They can
Here’s how
Ninety10Group.com
THE STAGE
Scale = audience = where the eyeballs have gone
Message broadcast at audience
Ninety10Group.com
THE STAGE
But in social networks the broadcast message doesn’t arrive
Ninety10Group.com
They aren’t looking at The Stage.
They are looking at each other
Scale = lots of communities of purpose = where the eyeballs are focused
Ninety10Group.com
•They share messages among their groups.•They adapt them to suit their groups•They make the message theirs
We share what we think is good with people who (we think) will think its good, too
Ninety10Group.com
•The groups are not fixed (adhoc).•The message spreads when the groups reform around a new purpose
Users select what they think is cool (has utility) to take with them on their journey
Ninety10Group.com
Participants adapt the message
to suit the group they wish to share it with
The people best-placed to adapt the message are in the group, not on the stage
Ninety10Group.com
And so it continues; the message evolving to survive. Or it dies out
We share what we think is cool. That which we co-create, we embrace
Ninety10Group.com
They aren’t your groups, they are theirs.
They aren’t your messages, they are theirs
Marketing is not done to them, it is done by them
Ninety10Group.com
So, if everyone is an advertiser now...
• Where does that leave you?• What is your role?
• What would you do if you were parachuted in to Planet Now?
By Satane
Ninety10Group.com
What if your role isn’t...
Ninety10Group.com
What if your role isn’t...
• To control who makes content
Ninety10Group.com
What if your role isn’t...
• To control who makes content• To control distribution
By STP243
Ninety10Group.com
What if your role isn’t...
• To control who makes content• To control distribution • To control the user experience
By: mattimattila/
Ninety10Group.com
What then?
• If it is not to control who makes content• If it is not to control distribution • If it is not to control the user experience
What is the role of advertising, then? If it’s going to survive then it’s going to have to adapt.
Ninety10Group.com
The Market Development Cycle
End of Life
Fault Line
Main Street(Declining)
Indefinitely Elastic Period
Main Street(Early)
Technology Adoption Life Cycle
Chasm
Ninety10Group.com
The advertising opportunity:
Structural
Business Model
Experiential
Product
Disruptive
Application
Process
Marketing
Reve
nue
Grow
th
TimeDisruptive
Ninety10Group.com
We asked 90:10 consultants: What replaces ads?Interesting content and services and the means to see what those around you are doing, thinking & getting
excited about – Mark Earls (author Herd)A network of active and (usually) passive recommendations – Luke Brynley-Jones – organiser Monitoring Social Media
The tour de France – designed to sell newspapers ,says it all – Alan Moore, Author Communities Dominate Brands 1. Transparency of Offering (allowing crystal clear understanding 2.
Relevancy of Communication (not assumed but assured 3. Value of Incentive (not necessarily monetary 4. Ease of Interaction (enabling intuitive interaction) – Jonathan MacDonald: CEO JME
Long term relationship and advocacy building. Nothing advertises better than buying the same thing again and telling your friends you like it Dr Chris Thorpe – Developer Advocate The Guardian, advisor to UK Government on open data
Ninety10Group.com
We have the greatest set of tools in history to connect people
• Surely you don’t think we use them to harvest eyeballs?
Ninety10Group.com
We asked Twitter
Commercial partnerships
Affinity, advocacy and
influence
Back to how people got the message out before the
printing press – with steroids
TrustThe broadcasting of content and opinion
Virtual goods
RecommendationsEngagement
Word of mouth – on and offline
Ninety10Group.com
Making a better message
• Many of us default to thinking about ways we can make incremental improvements to the messaging or our targeting
• It’s where innovation has focused.
• It’s what technology has been deployed to respond to.
Ninety10Group.com
It’s an approach that failsBleeding edge tech doesn't = bleeding edge demand. I’m old enough to remember Betamax.
• Then there was Phillips CD-i – answering questions customers hadn’t asked
• It tried to do too many things• Phillips added and added technical
functions and spec. • The execs were convinced the market
would lap it up. • But they forgot to ask what the user
would find useful.
Ninety10Group.com
Who are you innovating for?
• Often we innovate to make things better for ourselves.
• Or to show off how technically clever we are (our spec's bigger than your spec!)
Ninety10Group.com
A technological arms race• Is this what much innovation in digital
marketing has been about? • Sharper and sharper focus on tracking and
responding to online behaviour - cleverer and cleverer tech, more and more spec.
• All the better to serve the right ad at the right time...
• All the innovation focused on building a better advert.
• A technological arms race in pursuit of incremental improvements in quality or relevance of messages.
Ninety10Group.com
• As many people in the supply chain of advertising as it could be?
• Of course it’s useful to those in advertising, marketing, PR... but
• What do other elements of the messaging supply chain want from digital innovation – from the best-ever way of connecting people?
• Is a better advert what the manufacturers and service providers want from digital technology?
• Is a better advert what 'consumers' want? (they’d like better info, of course, but is that all)?
• Is it what media owners find most useful?
Who is that useful to?
Ninety10Group.com
Not a better message, better things• What if what we all actually want (manufacturers and service
providers - customers, media owners too) is improvement in quality or relevance of products and services?
• More potential 'customers' for advertising would find that useful.
• So the role of advertising and marketing may just be in deploying your skills and relationships to improve the quality and relevance of products and services.
• How do you innovate that using digital tools?
Ninety10Group.com
Become the platform
A platform organisation uses its available resources to find, connect and support those who share its Purpose.
Understand and express your
Purpose
Discover and introduce those who share your
purpose
Surface what the group
wants to fixAct to fix it
Value innovationBetter-fit solutions
More efficient
marketing
Ninety10Group.com
This is not just an advertising solution
• It’s about much more than message delivery, more even than behaviour changing
• This is a solution for media, for consumers, and businesses
• This is the future of the business of business
• It is a solution for the way things get made and made better, for how services get created and how ideas get shared
• It is the new way the world gets changed
Ninety10Group.com
Platform thinking• Organisations should be ‘enabling platforms’ – to
bring people together to create outcomes they all care about.
• Using technology creatively to bring people together to act delivers the most powerful consumer engagement there is:
• That which we create, we embrace. • That which we create we advocate – to our peers.• Without peer-to-peer sharing there is NO distribution
in social spaces.• Marketing and advertising agencies should use
technology creatively to join their clients in building platforms.
• Help those with shared purpose find each other, talk together, act together and improve what matters to them, together
Ninety10Group.com
Instead of this
Ninety10Group.com
Throw away your hammers; open your doors
What they get
What you tell them they
want
In-the-silo design
What they say they want
Beyond the Silo
What they want
Ninety10Group.com
Or be a broken business• Inspired by Clay Shirky: • ‘A screen that ships without
a mouse, ships broken’)• Any business that runs with
out a comment box, is running broken
Doing business without being open to contribution, is the wrong model for the networked world:
Ninety10Group.com
Any business that fails to open up to the riches it could share in through the feedback loops and real-time collaboration the internet enables, is a business that is in peril - at risk of being disrupted and defeated by those that are.
Next to those from the open future, it is broken.
Don’t let yours be one of them.
Internal External
Collaboration
Ninety10Group.com
We want to talk to you
Jamie Burke: +44 7590 [email protected]
David Cushman +44 7736 [email protected] Picture by caese via Flickr
