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The Death Of Advertising: Omexpo Madrid 2010
The document discusses the decline of traditional advertising in the face of the rise of social media and user-generated content, suggesting that conventional advertising methods are becoming irrelevant. It emphasizes that the control of content production and distribution has shifted to users, leading to a need for brands to adapt by focusing on creating value through engagement and relationships rather than direct advertising. The authors argue that the future lies in organizations becoming enabling platforms that foster collaboration and community among consumers, rather than merely broadcasting messages.
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The Death Of Advertising: Omexpo Madrid 2010
- 1. The death ofadvertising?If you landed in a world without advertising today, would you reinvent it?Ninety10Group.com
- 2. Who are we? The90:10 Group is a global business consultancy which helps brands and media owners deliver business innovation through social technologiesJamie 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
- 3. We’re here totell you...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 mediasSo has the ineffective mass advertising modelIn a peer-to-peer (P2P) world this is even less relevantSocial 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?
- 4. Why is itdying?EconomicMediaDon’t be fooled economic problems are just exaggerating a bigger disruption in media
- 5. Socialisation of MediaGloballymore 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 usersGoogle’s search results are dominated by Wikipedia, blogs and increasingly Twitter. They now have launched Google Social Search.Almost every website has a comment boxEvery TV and radio show has an official Facebook Fanpage and many unofficial communitiesNews is reported faster via Twitter than by the BBCMore UGC video has been uploaded to YouTube in one year than has been broadcast by TV, globally, EVERAlmost 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.
- 6. Ad money andmethod follows eyeballs..Mass Market AdvertisingPracticesSearchOnline AdFormatsTraditional BroadcastMedia(TV / Print)Social NetworksMobile?But is the improvement more than increment?
- 7. The Best ofDigital?Even video combined with flash, still 97.4% waste
- 8. With Behavioural Targeting?IndustryCTR = 0.06% - 0.17% is lowLet’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.
- 9. Search?On average, Adwordsaccounts 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 PEOPLEby pasukaru76
- 10. The clever aresocialising but not REALLY innovating..Advertising such as PPC Remains?
- 11. Social Networks?News Corpreports $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)
- 12. MobileSome people willcurrently 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 generatedGeo-targeting around UGC will increase CTR and CR but... Even Blyk failedThe 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
- 13. InsanityWe move frommedia to media and repeat the experiment of advertising.The Tech gets better and better yet the experiment continues to fail.
- 14. This is nota blipThis is not cyclical – it is structuralThe 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...
- 15.
- 16. 1-Mar-1016Social Media: iseverybody’s mediaDigitally enabled peer-to-peer networksFrom email and sms to Tuenti and TwitterDistribution is by people to peopleContent is by people to be shared with other peoplePOWER! It’s shifted from the centre to the edge – from you to them...
- 17. Where people haveaccess 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
- 18. AcrossEurope, the more people participate in social media, the less they consume broadcast media.
- 19. GlobalTime Spent on Social Media Sites is up 82% Year on Year (Nielsen)A different animal: Then sheep, now wolvesEasy to herdHunt in PacksBy BertozBy Tambako
- 20. What worked inthe old world won’t work in the new
- 21. YOU SPOKE THEYLISTENED
- 22. You were incontrolYou made the contentYou distributed the contentYou controlled the user experience
- 23. Who gets tocontrol production of content now?
- 24. Who gets tocontrol production of content now?Anyone and everyone
- 25. Who gets tocontrol production of content now?Anyone and everyoneWho gets to control distribution of content now?
- 26. Who gets tocontrol production of content now?Anyone and everyoneWho gets to control distribution of content now?Anyone and everyone
- 27. Who gets tocontrol production of content now?Anyone and everyoneWho gets to control distribution of content now?Anyone and everyoneWho gets to control the user experience now?
- 28. Who gets tocontrol production of content now?Anyone and everyoneWho gets to control distribution of content now?Anyone and everyoneWho gets to control the user experience now?The user controls their own A-Z journey
- 29.
- 30. We are inthe world of the ever lengthening long tail
- 31. You can’t buyspace in conversationsThey canHere’s howhttp://flickr.com/photos/caribb/
- 32. You can’t targetevery community of purpose.They canHere’s how
- 33. THESTAGEMessage broadcast at audienceScale = audience = where the eyeballs have gone
- 34. THE STAGEBut insocial networks the broadcast message doesn’t arrive
- 35. They aren’t lookingat The Stage. They are looking at each otherScale = lots of communities of purpose = where the eyeballs are focused
- 36. They share messagesamong their groups.They adapt them to suit theirgroups
- 37. They make themessage theirsWe share what we think is good with people who (we think) will think its good, too
- 38. The groups arenot fixed (adhoc).
- 39. The message spreadswhen the groups reform around a new purposeUsers select what they think is cool (has utility) to take with them on theirjourney
- 40. Participants adapt themessage to suit the group they wish to share it withThe people best-placed to adapt the message are in the group, not on the stage
- 41. And so itcontinues; the message evolving to survive. Or it dies outWe share what we think is cool. That which we co-create, we embrace
- 42. They aren’t yourgroups, they are theirs.They aren’t your messages,they are theirsMarketing is not done to them, it is done by them
- 43. So, if everyoneis 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
- 44. What if yourrole isn’t...
- 45. What if yourrole isn’t...To control who makes content
- 46. What if yourrole isn’t...To control who makes contentTo control distribution By STP243
- 47. What if yourrole isn’t...To control who makes contentTo control distribution To control the user experienceBy: mattimattila/
- 48. What then?If itis not to control who makes contentIf 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.
- 49. The Market DevelopmentCycleIndefinitely Elastic PeriodMain Street(Declining)Main Street(Early)Fault LineEnd of LifeChasmTechnology Adoption Life Cycle
- 50. The advertising opportunity:ExperientialMarketingRevenueGrowthProcessBusiness ModelStructuralProductApplicationTimeDisruptiveDisruptive
- 51. We asked 90:10consultants: 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 MediaLong 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 dataThe tour de France – designed to sell newspapers ,says it all – Alan Moore, Author Communities Dominate Brands1. 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
- 52. We have thegreatest set of tools in history to connect peopleSurely you don’t think we use them to harvest eyeballs?
- 53. We asked TwitterWordof mouth – on and offlineBack to how people got the message out before the printing press – with steroidsAffinity, advocacy and influenceEngagementRecommendationsTrustVirtualgoodsThe broadcasting of content and opinionCommercial partnerships
- 54. Making a bettermessageMany of us default to thinking about ways we can make incremental improvements to the messaging or our targetingIt’s where innovation has focused.It’s what technology has been deployed to respond to.
- 55. It’s an approachthat fails Bleeding 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 askedIt tried to do too many thingsPhillips 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.
- 56. Who are youinnovating 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!)
- 57. A technological armsraceIs 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.
- 58. As many peoplein the supply chain of advertising as it could be? Of course it’s useful to those in advertising, marketing, PR... butWhat 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?
- 59. Not a bettermessage, better thingsWhat 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?
- 60. Become the platform Aplatform organisation uses its available resources to find, connect and support those who share its Purpose.
- 61. This is notjust an advertising solutionIt’s about much more than message delivery, more even than behaviour changingThis is a solution for media, for consumers, and businessesThis is the future of the business of businessIt 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
- 62. Platform thinkingOrganisations shouldbe ‘enabling platforms’ – to bring people together to create outcomes they all care about.
- 63. Using technology creativelyto bring people together to act delivers the most powerful consumer engagement there is:
- 64. That which wecreate, we embrace.
- 65. That which wecreate 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.
- 66. Help those withshared purpose find each other, talk together, act together and improve what matters to them, togetherInstead of this
- 67. Throw away yourhammers; open your doorsIn-the-silo designBeyond the SiloWhat you tell them they wantWhat they getWhat they wantWhat they say they want
- 68. Or be abroken businessInspired by Clay Shirky: ‘A screen that ships without a mouse, ships broken’)Any business that runs without a comment box, is running brokenDoing business without being open to contribution, is the wrong model for the networked world:
- 69. CollaborationInternalExternalAny business thatfails 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.
- 70. We want totalk to youJamie Burke: +44 7590 [email protected] Cushman +44 7736 [email protected] by caese via Flickr
Editor's Notes
- #7 Beyond Incremental improvements of 0.02 to 0.03%
- #11 PPC Remains?
- #12 Twitter.. I hope they are the ones who will innovateWelldone for Facebook making Fanpages free to brands to push creativity for brand engagement but still just ads
- #65 If you are a brand, media owner, advertiser we can help you become a platform