The end of advertising as we know it

IBM – Institute for Business Value studies

ibm-logoTraditional advertising players – broadcasters, distributors and advertising agencies – will need innovative new approaches to respond to major industry shifts underway.

The next 5 years will hold more change for the advertising industry than the previous 50 did. Increasingly empowered consumers, more self-reliant advertisers and ever-evolving technologies are redefining how advertising is sold, created, consumed and tracked.

Imagine an advertising world where… spending on interactive, one-to-one advertising formats surpasses traditional, one-to-many advertising vehicles, and a significant share of ad space is sold through auctions and exchanges. Advertisers know who viewed and acted on an ad, and pay based on real impact rather than estimated "impressions." Consumers self-select which ads they watch and share preferred ads with peers. User-generated advertising is as prevalent (and appealing) as agency-created spots.

 the-future-of-advertising

 

 

 

 

 

 

 

 

 

 

 

 

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Agency Report 2007

Advertising Age – DataCenter: Agency 2007

TOP INTERACTIVE AGENCIES

RANK

U.S. INTERACTIVE REVENUE

2006

AGENCY [PARENT]

HEADQUARTERS

2006 REVENUE

%CHG

1

Avenue A/Razorfish [aQuantive]

Seattle

$235.4

24.1

2

Sapient* [Sapient Corp.]

Cambridge, Mass.

228.0

29.6

3

Digitas* [Publicis]

Boston

163.2

5.3

4

Wunderman* [WPP]

New York

113.4

NA

5

Rapp Collins Worldwide* [Omnicom]

New York

107.1

11.7

6

OgilvyInteractive* [WPP]

New York

103.2

13.2

7

Organic* [Omnicom]

San Francisco

102.0

41.7

8

AKQA

San Francisco

98.0

58.1

9

DraftFCB* (MS) [Interpublic]

Chicago/New York

94.1

4.3

10

IMC2*

Dallas

92.7

44.9

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Most respected agencies (in UK)

 

1

Glue London

2

Dare

3=

AKQA

3=

Poke

5

Profero

6=

Graphico

6=

LBi

6=

R/GA

 

 

 

 

 

 

 

 

 

 

Most influential person (in UK)

 

Rank

Name

Title

Agency

1

Wayne Arnold

UK MD

Profero

2

Mark Cridge

CEO

Glue London

3=

Ajaz Ahmed

Chairman

AKQA

3=

Russell Davies

Planner and blogger

 

 

 

 

 

 

Battle Of The Advertising Superpowers

Online Advertising Made Simple

Google acquiring Doubleclick, Microsoft acquiring aQuantive, WPP acquiring 24/7 RealMedia and AOL acquiring AdTech AG to go along with what they already own in Advertising.com.

Additionally, there are still some other large players who are also in the game such as News Corp./Myspace/Strategic Data Corp, and IAC/Ask.com.

Obviously this is a big land grab for these large companies, combined with trying to get innovative companies who are pushing things forward in online advertising. The Wall St. Journal talks about the ad exchange concept and how it relates to these acquisitions.
"Exchanges could eventually handle 50% of all display ad sales."
"The underlying assumption to that is you’re buying a commoditized product that anyone can sell you."

 

Who’s Got What?

After the acquisitions are all complete, we need to stack up all the areas that matter in the online advertising battle that’s taking shape. (A checkmark means they have an asset, the 1/2 means they do to some extent but not to the same level as the other companies).

[Combo]

 

 

 

 

 

 

 

Advertising Marketplaces: DoubleClick, Google, Yahoo, RightMediaMicrosoft, Atlas

 

Create TV ads Online

Spot Runner

article-largeSpot Runner’s online system is changing the way advertisers are thinking about creating, planning and buying all forms of media from local television to online search. Bant Breen interviews Andrew Bloom of Spot Runner about the company’s services and direction. 

 

 

  

Thousands of Versions of Ads

It’s an Ad, Ad, Ad, Ad World – New York Times

It is only a matter of time until nearly all advertisements around the world are digital.

The plan is to build a global digital ad network that uses offshore labor to create thousands of versions of ads. Then, using data about consumers and computer algorithms, the network will decide which advertising message to show at which moment to every person who turns on a computer, cellphone or — eventually — a television.

More simply put, the goal is to transform advertising from mass messages and 30-second commercials that people chat about around the water cooler into personalized messages for each potential customer.

Greater production capacity is needed, Mr. Kenny says, to make enough clips to be able to move away from mass advertising to personalized ads. He estimates that in the United States, some companies are already running about 4,000 versions of an ad for a single brand.

Publicis is trying to carve out a niche as a middleman between those online giants and the consumer brand companies that buy advertising.

As the Internet emerged, Digitas developed a platform it calls Dashboards to break online ads into their components and figure out which pieces work for which audiences.

Which Ad is Aimed at You?

 

Neurological Market Research

ANA Marketing Musings

newanaTrends to Watch in 2008

Going beyond traditional focus groups and consumer surveys, market research will embrace scientific approaches that literally tap consumers’ brains to learn how they neurologically respond to commercial messages and make brand choices. The Four A’s and ARF have begun researching this topic in earnest with an intensive study, "On the Road to a New Effectiveness Model." In 2008 we will start to see practical applications of these insights as advertisers and shops begin to truly understand engagement.

A Radical Report Hidden Between the Pages of a Whitepaper
Response to The Advertising Research Foundation report on Idea Engagement, “On the Road To a New Effectiveness Model”
by Verse – The Narrative Branding Company
A new report by The Advertising Research Foundation (ARF) should cause all of us in branding, advertising and marketing to stop, question and re-evaluate the way we see our world. The report is titled, “On the Road to a New Effectiveness Model.” No, it isn’t a revision of the Kerouac novel. But it is no less radical.
The report summarizes fi ndings from a three-year taskforce looking at the underlying principles and theoretical constructs of advertising effectiveness. We actively participated in the taskforce during that time and agree with the conclusions and implications, particularly the statement, “The fi ndings of this project require us to completely rethink how advertising works.” And rethinking advertising isn’t even the half of it. The findings shake the very bedrock upon which advertising, branding and marketing as a whole are built.
The findings indicate that “brand positioning” is perhaps the most misguided marketing idea in the past 30 years.

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Digital Future Trends

iMedia Connection: iMedia Podcast

jeffrey_cole_1Jeff Cole, director of the Annenberg School’s Center for the Digital Future, describes five emerging trends to leverage.

The Center for the Digital Future, led by Jeff Cole, studies the impact of online technology on people’s lives, and society in general. Its Digital Future Report examines the behavior and views of a national sample of 2,000 internet users and non-users, as well as comparisons between new users — those with less than one year of experience — and very experienced users, defined as those with seven or more years of experience.

The World Internet Project is a long-term longitudinal look at the effects of computer and internet technology on all aspects of society, which is conducted in over 20 countries. At the announcement of the project in June 1999, Vice President Al Gore praised Cole as a “true visionary providing the public with information on how to understand the impact of media.”
In today’s presentation, Cole describes five new emerging trends that your organization will want to leverage.

 Download the electronic version of PodCast: Digital Future Trends free of charge.


This year’s report contains a large module looking at on-line communities and social networking in great detail. Readers can compare the social networking data and correlate it to seven years of attitudes and behaviors on-line. As usual, the report continues to track off-line media use, purchasing both off-line and through e-commerce, social and political activity and a wealth of other data.

PDF Download the electronic version of 2008 Digital Future Report Highlights free of charge.
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Microsoft: 50% on digital by 2010

Now it’s personal – Brand Republic News logo-microsoftMicrosoft is taking a leaf out of Amazon’s marketing book, with a focus on customer experience and participation. Alicia Buller talks to global marcoms director, Bill Capodanno.

Mich Matthews, senior vice-president, marketing, at Microsoft claimed earlier this year that 50 per cent of the company’s £500m adspend would go on digital by 2010. But, although it was a grand assertion, it was also a true assertion, according to Capodanno. "Microsoft is already allocating 30 per cent of its marketing budget to digital and, when Mich said 50 per cent, it was not some arbitrary delineation. It’s based on the patterns of media consumers use. They are making dramatic shifts into the digital space," he says.

The firm is trialling ten large-scale global social-media products, testing the viability of new media such as blogs, ‘wikis’ and messaging as customer-engagement tools.

"We think about perception-based activity and behavioural-based activity – the world is at a stage when the two things are intertwined. You can’t compartmentalise attitudes and behaviour – they are inextricably linked. Our focus is on understanding the behaviour of our consumers. Once we have shifted an attitude, then we look for deeper engagement, usually through behaviour."

"…we’re seeing the importance of customers evangelising your products. You have to create situations where those relationships breed loyalty that leads to them evangelising your product."

"There isn’t this separation between business users and consumers anymore. People are individuals…"

While Microsoft is currently focused on digital, its long-term aim is that its marketing should be channel-neutral.

"The customers are now in control, whereas, in the past, they were passive. Any marketer that fails to realise this will become …" he chooses the next word carefully, "irrelevant."

 

Serious business: Web 2.0 goes corporate

FAST – News & Events – Press Releases

newlogo 

Web 2.0 has moved from buzzword to reality in many of the world’s largest corporations, according to a survey of 406 senior executives worldwide by the Economist Intelligence Unit. The survey found that 79% of respondents see the collaborative web as a way to boost revenues and cut costs. Perhaps the most interesting finding is that a full 85% of C-suite executives see the sharing and collaboration aspects of Web 2.0 as an opportunity to increase revenue and/or margins, versus 75% of middle management. These findings point to a possible disconnect between the corner office and the rest of the organization on how to best incorporate Web 2.0 practices into business.

The most-cited effect of Web 2.0 – a collection of Web-based services that emphasize online collaboration and sharing among users – is to transform the way that companies interact with their customers. The study, which consisted of in-depth interviews with corporate leaders as well as a global survey of senior executives, found that large companies are already using Web 2.0 tools and methods in a variety of ways. So far, companies have focused their Web 2.0 efforts mainly on the creation of online communities that can help with product marketing or product development. In second place is the establishment of blogs or wikis to initiate conversations and share knowledge inside or outside the company.
 
In the future, companies expect Web 2.0 methods and tools to be the single biggest factor changing the ways their company interacts with customers (according to 68% of executives), or on how employees interact with each other and the company  (49% of survey respondents).

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The future of marketing: From monologue to dialogue

EIU.com

newlogo

Until a few years ago, marketing was a monologue. Marketers invested time, talent and money to broadcast messages designed to correspond with each stage of a theoretical buying cycle: awareness, research, consideration, testing, negotiation and transaction. The past two years have witnessed the first examples of true two-way marketing "conversations" between customers and some of the world’s leading consumer brands. Driven by a confluence of innovation, competition and big shifts in consumer behaviour, the dialogue between brands and their customers is replacing the traditional marketing monologue.

Among the key findings:

  • Chief marketing officers (CMOs) will need to rethink four basic elements of their work–branding, integration, measurement and accountability, and internal organisation–in order to conduct online and offline marketing activities that are relevant, measurable, and accountable to the C-suite in terms it understands, such as top-line growth and speed to market.
  • In the area of branding, the survey and in-depth interviews with senior marketers reveal that online marketing enables marketers to create interactive brand experiences that also contain a path to action for the consumer. The result is that online branding has the potential to become the central marketing expression for organisations.

  • The Internet blurs the line separating creative media and media planning/buying functions, offering marketing executives new scope to integrate these activities. Online tools, especially search engines, help marketers combine two important elements for truly integrated marketing: intelligence into customer thinking and intentions generated by other media.

  • Marketers are dissatisfied with their current ability to measure results of marketing campaigns, both offline and online. The ability to measure results will improve, however, given that CEOs are requiring direct evidence of a return for marketing investment. Return on investment (ROI) is accountability by another name and a burning concern of CMOs.

  • As the role of marketing expands to affect other corporate activities such as joint ventures, alliances and even product development, top marketers recognise a need to create new incentive structures in order to prepare their internal organisations for the increased level of accountability.

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