creative versus better targeting - connecting the dots
DESCRIPTION
This is a stub deck of a larger internal presentation on two things: 1) ad formats and mediums and how we do a poor job matching the message to the medium 2) the downfall of the current obsession with targeting. Why creative triumphs over data every time but media agencies and clients are focused on where they can see small gains instead of GIANT GAINS in their ROI The solutions had to be removed for now but I think a smart person could figure it out.TRANSCRIPT
02.12.12
Advertising
San Francisco
MEDIA TYPES AND THE CONSUMER
C O N N E C T I N G T H E D O T S
THE COLLECTIVE FACTORY LLC
Gene Keenan - The Collective Factory LLC
SUMMARY
3
Todays consumer has 1000’s of media touch points. Digital has changed the way we look at media because we can now measure it and analyze it in real time. Nielsen recently released a study that looked at media by type and how the consumer thought of those media types. This short presentation will look at:
• What is the background behind media consumption
• What are the results of that study
• What are the implication of that study?
• Creative solutions
BACKGROUND
Todays Media Consumption Is Concurrent and non-discriminatory
5
Usage is focused on constant entertainment and truth seeking through information.
STUDY RESULTS (CONSUMER MEDIA PERCEPTIONS)
7
4%
2%
2%
19%
17%
46%
52%
52%
12%
19%
20%
3%
7%
9%
2%
2%
15%
14%
53%
51%
18%
23%
11%
11%
3%
2%
2%
22%
11%
13%
52%
50%
48%
17%
22%
24%
6%
15%
13%
36%
Emails I signed up for Ads in magazines
Ads served in search engine results Products shown embedded in TV Ads on mobile devices
Online video ads Online banner ads Ads on social networks
3%34% 49%
11%4%
Editorial content such as a newspaper article
4%31% 49% 11%
4%
Brand websites
3%26% 45% 19%
7%
Ads on TV
3%24% 51% 16%
6%
Ads in radio
Trust Completely Trust Somewhat Neither Trust nor Distrust Don’t Trust Much Don’t Trust At All
Nielsen, Global Online Survey, Q1 2011
universal in lack of trust
The universal access to truth has changed our perceptions.Regardless of format and contrary to belief, advertising does
not control how people think.
INDIVIDUAL RELATIONSHIPS AND COLLECTIVE WISDOM DO HOWEVER WORK
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1%18% 58% 21%
2%
RECOMMENDATIONS FROM PEOPLE I KNOW
2%4%
45% 38% 10%
CONSUMER OPINIONS POSTED ONLINE
#1 #2note drop off
between friends and just
consumers
Trust Completely Trust Somewhat Neither Trust nor Distrust Don’t Trust Much Don’t Trust At All
Nielsen, Global Online Survey, Q1 2011
HISTORY (A BRIEF LOOK AT HOW WE GOT TO TODAY)
10
advertising started with functional attributes
It focused on NEEDS of consumers
source: adam curtis: century of the self vol 1.
BEGINNING OF INDUSTRIAL REVOLUTION
To address the concerns of companies that eventually consumers would stop buying things because they had the wares that they needed Eddy Bernay’s championed the idea of tying the subconscious desires of consumers to the product
Shifting from needs to desires
To create need where none existed
source: adam curtis: century of the self vol 1.
The availability of consumer credit on a mass scale also drove consumption by making it possible to buy “desires.”
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INDUSTRIAL REVOLUTION: SUBCONSCIOUS DESIRES
12
• Making it possible for consumers to talk to a greater pool of consumers and to seek the truth about a particular product
Truth about any product became a mouse click away
THEN THE INTERNET CAME ALONG
NET RESULT (IMPLICATIONS)
ACCESS TO INFORMATION HAS CHANGED BUT ADS HAVE NOT
(we still seek simple reach impressions instead of dialog)
14
9% of marketers believe traditional ad agencies are doing a good job of evolving and extending their service capabilities.
Only 36% of marketers are committed to their agency relationships
http://www.mediabizbloggers.com/uwe-hook/The-State-of-Agency-Brand-Relationships---Uwe-Hook.html15
as an agency, we keep driving off the cliff expecting a different result
stop
AND WE WONDER WHY CMOS ARE UNHAPPY WITH THEIR AGENCIES
16
While, there is no magical ad placement that can control the stories people share
about your brand…
You can be a part of shaping the story that is told. In the age of connected devices and connected consumers the key is to
focus on a story that is true and compelling.
SO… REGARDLESS OF MEDIA CHANNEL OR AD FORMAT, THE COLLECTIVE STORY IS WHAT STICKS.
We need to move the messaging to storying telling not a better/more flash ad format or
targeting capability via DSP’s/DMP’s
17
media agencies are mindlessly obsessed with targeting
WHY FOCUS ON CREATIVE?
19 http://www.comscore.com/Products_Services/Advertising_Effectiveness/Creative_Messaging_Optimization?articleid=90&zoneid=4
According to Comscore:52 percent of sales lift variance is attributable to the quality of the advertising creative
SIDE BAR
Every agency is focused on optimizing media through DSP’s and DMP’s but better creative will make a bigger impact every time.
ADVANTAGE: While everyone else is focused on optimizing an internal combustion engine we will focus on a hybrid approach which is better creative driven by technology married with strong media.
FOUR TIMES the importance of the
media plan
BETTER CREATIVE IS 4X MORE EFFECTIVE THAN A MEDIA PLAN
In case you missed the last slide:
Better creative is 4X more effective than the BEST media
optimization.
http://www.comscore.com/Products_Services/Advertising_Effectiveness/Creative_Messaging_Optimization?articleid=90&zoneid=4
HOW WILL WE KNOW THE CREATIVE IS BETTER?
BY TESTING IT!!!
“The most important word in the vocabulary of advertising is TEST. If you pretest… you will do well in the marketplace.”- David Ogilvy
58% of CMO’s are unsatisfied with the evaluation process associated with benchmarking their agencies' creative advertising effectiveness.
http://www.mediabizbloggers.com/uwe-hook/The-State-of-Agency-Brand-Relationships---Uwe-Hook.html
UNMET NEED =
CREATIVE TESTING
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CREATIVE TESTING WILL BE AT THE CORE OF SUCCESS
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Not really.
WHY?Because of the cost of Flash
production, clients rarely pay for the creation of additional units for testing.
ISN’T CREATIVE TESTED ALREADY?
P&G Febreze | Triumph of Creative Over Targeting | P&G The King Of Creative TestingCREATIVE CASE STUDY
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INSIGHTP&G focused on using Febreze to eliminate odors instead of making it a habit as part of your cleaning process. “Spraying feels like a little mini celebration when I’m done with a room.”
SOLUTIONThe marketers needed to position Febreze as something that came at the end of the cleaning ritual, the reward, rather than as a whole new cleaning routine.
RESULTSThe Febreze revamp occurred in the summer of 1998. Within two months, sales doubled. A year later, the product brought in $230 million. Since then Febreze has spawned dozens of spinoffs — air fresheners, candles and laundry detergents — that now account for sales of more than $1 billion a year.
BACKGROUNDP&G spends millions developing a new product and millions more marketing it. They apply the right media targeting to expose the right audience to this new product. Sales of the product started small and got smaller as the weeks rolled on despite heavy media spends against the right target
Lot’s of great examples of creative winning but this P&G
example is great because better creative married with
insight made a failing product successful
source: http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html?pagewanted=all
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CHALLENGES OF SUCCESS (CREATIVE)
WHAT ARE THE CHALLENGES OF CREATIVE TODAY?
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Not measured (in most cases)
Were using formats ill suited for the medium
Media formats consumers find annoying
WHAT ARE THE REASONS BEHIND THIS?
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CHALLENGE REASON
Not measured (in most cases)Cost is too high for most clients to run A/B tes4ng on crea4ve because of the use of Flash or poorly informed media and crea4ve teams
Were using formats ill suited for the medium
These formats (flash banners, take overs) are more profitable than sta4c ones
Media formats consumers find annoying
These formats (flash banners, take overs) are more profitable than sta4c ones
A QUICK REVIEW OF EXISTING CREATIVE BENCHMARKS
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ONLINE AD FORMATS AND CTR
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0%
0.03%
0.06%
0.08%
0.11%
Image AdsFlash Ads
RM In-Page/Non-Video
RM In-Page/Video
RM Expandable/Non-Video
RM Expandable/Video
0.09%0.09%0.08%
0.11%
0.09%0.09%
CTR
Statistically, there is little difference between any of the ad formats
source: google/double click ad benchmarks
ONLINE AD FORMATS AND TIME SPENT
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Half page Ad Non-Video
Half Page Ad Video
Large Rectangle Video
Large Rectangle Video
Leaderboard Non Video
Leaderboard Video
Medium Rec
Skyscraper Non-Video
Skyscraper Video
Wide Skyscraper Non Video
Wide Skyscraper Video
0 20 40 60 8027.2
19.9
4.5
21.3
12.0
20.0
11.0
0
16.0
13.3
9.9
26.1
25.6
33.4
33.7
32.3
34.3
32.7
78.2
68.2
60.1
64.2
7.9
7.3
2.5
7.3
6.1
7.1
5.9
7.5
8.4
9.3
6.3
Average Interaction TimeAverage Display TimeAverage Expanding Time
Average Display Time
Regardless of unit type, interaction times are about
the same
MOBILE AD FORMATS AND CONSUMERS
3232
Full Page Ad
Sponsored App
Mobile Internet Banner
Take Over
App-Integrated Top Banner
Sponsored SMS
Conversational SMS
App-bottom banner
High clickpotential/Lownoticeability
High clickpotential/Highnoticeability
Low clickpotential/Lownoticeability
Low clickpotential/Highnoticeability
30%
25%
20%
15%
10%
5%
0%
0% 20% 40% 60% 80% 100%% Saying Ad is Obvious in Context
% S
ayin
g Ad
wou
ld c
lick
on A
d
Size = % who say ad in context is annoying
source: Insight Express
Static Mobile Internet Banner is
least annoying and most effective
from a click through
perspective
MAKING STATIC WORK
MATCHING CREATIVE TO THE MEDIUM
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WE NEED TO THINK ABOUT HOW MEDIUMS BEST TELL STORIES:
People are not on content pages long enough to watch our 30 second 4 loop flash banner. Instead a “static billboard” might be more effective (and cheaper).
Make static work by combining the medium with the capabilities
of ad servers.
Imagine driving down the highway and there is a billboard. You only have a few seconds to get your message across to the driver. Is a 30 second banner going to get your message across?
Which Format Will Work Best Here?
END FOR NOW
CONTACT:Gene [email protected]
http://www.thecollectivefactory.com