chaos scenario
TRANSCRIPT
The ideas in this presentation are taken from an article by Bob Garfield which appeared in Adage.com in April 2005
The conventional advertising model:
Advertiser MediaAgency Customer
Focus on:
Customer Satisfaction
Customer Delight
Customer Value
Focus on:
Customer Buying Behaviour
Customer Motivations
Messages
Proposition
Focus on:
Customer Targeting
Coverage
Content
The emerging model:
Customer
Advertiser
Exchange Value: Customer Needs
Information
Interrogation
The emerging model:
Customer
Advertiser
Media
Exchange Value: Customer Needs
Information
Interrogation
Exchange Value: Entertain
Inform
Educate
Access on demand
The emerging model:
Customer
Advertiser
Media
Network Groups
Exchange Value: Customer Needs
Information
Interrogation
Exchange Value: Entertain
Inform
Educate
Access on demand
Exchange Value: Information
Opinions
Experience
The emerging model:
Customer
Advertiser
Media
Network GroupsAgency
Exchange Value: Customer Needs
Information
Interrogation
Exchange Value: Entertain
Inform
Educate
Access on demand
Exchange Value: Information
Opinions
Experience
Exchange Value: ??????????
US network TV audiences are declining by an average of 2% every year (Nielson)
The cost of reaching 1,000 households in US TV Prime Time rose from $7.64 in 1994 to $19.85 in 2004
Conventional media measures:
Reach
Frequency
Exposure
Cost per Thousand
What advertisers want to measure now:
Outcomes
Engagement
Effectiveness
Video on Demand
Vs
Prime Time TV
Network TV still delivers the largest audiences…. for now
TV is…”the last surviving conglomeration of human beings in the living room”
- Geoffrey Frost, chief marketing officer of Motorola.
Mass marketing via TV is losing cost-effectiveness
”There’s been research that the real cost of obtaining 30 seconds of the consumer’s attention is the same in 2005 as it was before the invention of television.” - Shawn Burns, MD of Wunderman, Paris.
Conventional Media:
Advertisers are paying more and more for fewer and fewer viewers.
But what else can deliver broad-based audiences?
What will replace TV?
• Internet• Video on Demand• Smartphones• Internet / Cable
Smaller total audiences = Fragmentation
“Opportunities to have a conversation with small clusters of consumers.”
Consumers are no longer passive receivers.
Consumers actively seek the content and information they
want.
Large budget players are on the same playing field as small scale advertisers and content
creators:
Bloggers, podcasters, vloggers, virals
Broadcast TV
Mass media
Mass marketing
Online
Micro media
Permission marketing
The big questions:
• Broadband– How many have access?
• Capacity– Who/How will create
content?• Quality
– Who will want to watch content?
• Finance– Who will pay for content?
• Legislation– Peer-2-Peer: Who will
protect creator rights?
• Cost– As cost of online
advertising rises, will cost advantage be eroded?
• Suitability– Will content be suitable for
advertising?– Will social networks be
suitable advertising media?• Infrastructure
– Who is going to create and administer online content?
• Preparedness– Nothing is ready!
For further information:
http://adage.com/adreview/post?article_id=143120
http://www.bobgarfield.net/adAge.php
http://www.bobgarfield.net/video.php?video=video2
http://thechaosscenario.magnify.net/
http://adage.com/garfieldtheblog/
