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MARKETING CRACK KICKING THE HABIT
W I E D E N + K E N N E D Y
W I E D E N + K E N N E D Y
“We’ve created a gambling culture in which we tune out everything
except the most immediate outcomes.” Laurence Fink,
Chairman and CEO, BlackRock
5 themes: impatience addiction recovery
habits hope
IMPATIENCE
$100 today? or $125 a year from now?
most people choose
$100 today (rejecting a 25% return)
“temporal discounting” psychologists
“rates of time preference” economists
“patience”
you and I
we live in impatient times
management horizon:
3 months out McKinsey
70-90% of company value:
3+ years out McKinsey
cash-flows 5 years ahead
valued as if 8+ more years ahead
Andrew Haldane, Bank of England
% of corporate earnings and borrowing used to go into investment:
1960s: 40 1980s: 10
Roosevelt Institute
% of S&P companies’ profits spent on share buy backs and dividends:
95 Forbes
total amount spent between 2004 and 2013 on share buybacks:
$3.4 trillion Prof. William Lazonick
number of S&P 500 CEOs serving 15+ years:
28 Spencer Stuart/Wall Street Journal
average agency-client tenure:
1980’s: 8.5 years Forbes
average agency-client tenure:
today: 3 years Forbes
culprit #1 the relentless (and reckless) pursuit
of shareholder value
“The world’s dumbest idea” Jack Welch, former General Electric CEO
culprit #2 the speed of our machines
culture and capital move
at the speed of our machines
time for news of Nelson’s victory in 1805
at the Battle of Trafalgar to reach London:
17 days (2.7mph) Prof. John Tomlinson
time for news of the Sichuan earthquake in 2008
to reach London:
1 minute (204,000mph) Prof. John Tomlinson
decline in average tenure of Premiership football manager:
down one month per year since 1994
Sue Bridegwater, Liverpool University
by 2020:
one season
50% of viewers stop waiting for online video to load
after 10 seconds Kiushnan & Sitaraman
29capitalism has become a system of extraction
30culture has relocated itself
to the present moment
“The long is short” Andrew Haldane,
Chief Economist and Executive Director of Monetary Analysis and Statistics, Bank of England
ADDICTION
“A pathological attachment to something attractive in the short term, but
destructive over time”
Dr. Chris Johnstone, addiction specialist
chasing short-term metrics…
except that
easy to measure ≉ important
and
distribution ≉ value
chasing real-time optimisation…
“activity can be honed hour by hour if desired”
source withheld
except that advertising
does NOT pay back in the short-term
chasing short-term efficiencies…
“with this type of automated advertising, you know your ad
impressions will only be used on certain people who are already
interested in your product or service.”
media agency
except that
response rate ≉ effect size
and
demand fulfilment ≉ brand building
awarding creative innovation…
except that
creative innovation
≉ brand building
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this isn’t brand building
it’s addiction
“Recovery is about looking where we’re going and choosing a path
that can last.”
Dr. Chris Johnstone, addiction specialist
RECOVERY
sustained, profitable brand building
is long-term by nature
long term effect
≉ a series of short-term effects
short-term effect: short-term sales uplifts
but no price effects
Binet & Field
long-term effect: rising base sales
Binet & Field
long-term effect: and rising pricing
Binet & Field
building “memory structures”
Byron Sharp
building “empires of the mind”
Judith Williamson
building brands
everyone else
HABITS
think like the platform builders
TAKE THE LONG VIEW
“A management team distracted by a series of short term targets is as pointless as a dieter stepping on a
scale every half hour.”
Brin & Page
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Sir Alex Ferguson Manchester United
1986 - 2013
build a club not just a team
“Winning a game is only a short-term gain - you can lose the next game. Building a club brings stability
and consistency.”
Sir Alex Ferguson
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49 trophies the most successful managerial career
British football has ever known
THINK BIG
“Big ideas take too much time to find… full of hot air, fluff, inflated with self-importance,
exaggeration and hyperbole.”
Joseph Jaffe
riiiiiight…
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“Being right also puts the onus on us: every aspect of our business, be it the
customer service team, web team, finance team, we place the customer
needs above all else.”
Global Chief Marketing Officer, booking.com
EXTRACT MAXIMUM VALUE
FROM YOUR PLATFORM
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BUILD A PLATFORM OTHERS WANT TO
DEVELOP FOR
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HOPE
that we get back to
creating value not just extracting it
that we build around
the needs of people not merely the needs of shareholders
that we start thinking
bigger, longer, and broader
that we start creating
sustainable futures for our clients’ brands and businesses
that we get back to
building things
