The future of Advertising

@PSFK | #FutureofAdvertisingLABS

The Future of Advertising

The New Rules Of Digital Engagement

SUMMARY PRESENTATION

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@PSFK #FutureofAdvertising

Diminished Attention Spans

The human attention span shortened from 12 seconds in 2000 to 8 seconds in 2013. Attention Spans: Consumer Insight, Microsoft, 2015

New Interfaces : Chat And Voice

Millennials spend equal or more time in messaging apps than on social networks. Brand Engagement Report, Frank N. Magid Associates, 2015

Ad Blocking

Spending on digital video advertising increased almost 60%, while the number of ad blockers rose from 54 million to 121 million. Ad Blocking Goes Mainstream, PageFair, 2015

Artificial Intelligence

59% of online traffic is not human traffic, but query-focused bots. Distill Networks, 2015

AudienceIs Changing

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The PSFK Advertising Survey 2016 polled over 150 professionals from brands, agencies, media outlets across 14 countries to understand how advertising professionals view the future of their industry.

Industry Is Changing

50% of brands think that advertising is more important than ever.

Advertising Is Still Important

56% of the industry says advertising agencies are less important.

But Agencies Are Less So

44% agree that media outlets are less important as well.

49% of agencies worry that the agency is less important than before.

Agencies Are Struggling To Find Their Role

80% of media outlets think the agency is less important than before.

Media Outlets Are Encroaching On Agency Responsibilities

Media Outlets Are Fading Too

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Agencies

Moving past branded messaging, agencies must transition to become co-creators of identities, tools and products with their clients.

Brands

Brands must assemble a diverse team of agencies, producers, innovation partners and media providers to not only create content, but also to reach them in the right moments.

Media Providers

Media providers will expand the scope of branded content, integrate contextual activations into offerings, and develop more immersive platforms.

Evolution Of The Marketing Industry

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Rather than pushing activations onto consumers, effective digital engagements adapt brand content to the context and community in which it is experienced—inviting audiences to pull for more information.

Layers of micro-customizations create symbiotic relationships where brand and consumer rely on one another for support and collaboration.


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7 Triggers To Consumer Motivation

1 REWARD

2 UTILITY

3 LOYALTY

4 ENTERTAINMENT

5 STATUS

6 NOVELTY

7 CONVENIENCE

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Content

1. Story Selling

2. Brand-Led Education

3. Diversified Perspectives

4. Product As Media

Community

8. Conversational Assets

9. Fan Pairing

10. Second Screen Participation

Context

5. Micro-Moment Media

6. Situational Interactions

7. Personalized Engagement

Collaboration

11. Control The Content

12. Audience Showcase

13. Creative Patronage

13 TrendsEvolving Digital Engagement

To increase share of voice in the marketplace, companies must reframe content to provide direct value for consumers.

Brands that share advice, experiences or compelling narratives invite consumers to seek out their content rather than forcing exposure. CONTENT

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Owned entertainment channels give brands the full creative control to produce high-quality content that audiences actively seek out during leisure time.

Owned media is now trusted as a source of general news and information by 46% of the

population. It increased by 3% in the last year to where it is now more trusted than social media.

Edelman Trust Barometer, 2016

“Take off your marketing hat and put on one that befits a journalist. What you sell

as a brand is not solely your product.”

Luke Kintigh, Global Content and Media Strategist, Intel

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Story Selling

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GE Sci-Fi Podcast The Message Draws Reader Suspense While Introducing Company Products

themessagepodcast.com

Agency

BBDO New York

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Story Selling

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http://themessagepodcast.com

NICKY TOMALIN

Hola. Hi. Shalom. Bonjour. I’m Nicky Tomalin, your average Chi-Town girl living her dreams

one podcast at a time. [ep2 | 4min 14sec]

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Story Selling

Maybelline High-Profile YouTube Show Vanity Speaks To Digital-Savvy Fashionistas

youtu.be/STQVQ8EXGvU

Agency

Canvas Media Studios, Los Angeles

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Virtual reality, interactive video, and immersive content create activations that introduce users to different perspectives, refreshing routine brand experiences and amplifying emotional appeals.

“I don’t want to take you to a place you can already go. It’s about taking you to a place you

can’t go or can’t experience in the physical world.”

Dan Ferguson, Director of Digital Interactive, ReelFX

“When you engage with an audience in a different form it takes on a whole new association.”

Andy Goldberg, Global Chief Creative Officer, GE

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Diversified Perspectives

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American Express Fans Compete Against Tennis Pros In VR You vs. Sharapova Match

americanexpress.com

Agency

Momentum Worldwide New York

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Excedrin The Migraine Experience Simulator Helps Family Empathize With Sufferers

excedrin.com/migraine-experience

Agency DDB Remedy London

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R&D initiatives and industry expertise inform educational messaging that helps customers optimize product use and improve their routines.

“When branded education is used in the correct way, it doesn’t feel like you’re

being advertised to. You are being useful to someone who is loyal anyway.”

Nicole Yershon, Director for Innovation Solutions, Ogilvy & Mather UK

“Being useful to people is paramount.”

Jonathan Daly, Chief Strategy Officer, Saatchi & Saatchi China

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Brand-LedEducation

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Brand-Led Education

Quaker Oats Amazon Echo’s Spoken Instructions Guide Users Through Overnight Oats Recipe

quakeroats.com

Producer

Quaker Oats

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Brand-Led Education

Johnson’s Internal Research Inspires BEDTIME Baby Sleep App

johnsonsbaby.com/baby-sleep-app

Producer

Johnson’s

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Mixed media, action-triggered sensors and mobile applications transform products into messaging tools, relaying anything from product information to exclusive content.

“Partner with product to align on a joint vision. Especially in tech brands, product

and marketing need to find common language to succeed together.”

Brian Irving, Global Marketing Director, Airbnb

By 2020, there will be 34 billion connected devices.

BI Intelligence, 2015

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ProductAs Media

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Product As Media

Coca-Cola Wish In A Bottle Triggers Shooting Stars

cocacola.co.il

Agency

Gefen Team, Israel

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Product As Media

Toys ‘R’ Us Book of Awesome Toy Catalog Overlays Digital Pop Ups And Surprises

bit.ly/toysrusbook

Agency

BBDO Atlanta

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Heighten audience anticipation by releasing content in serialized installments. Offer second-screen interactions that allow viewers to share their opinions between episodes.

Offer branded resources for shoppers to access expertise on the categories associated with a brand.

Refresh repeat interactions by introducing a new perspective or vantage point.

Build content into product packaging to connect with consumers post-purchase and encourage loyalty.

Campaign Triggers For Content

Targeted messaging is evolving from general situational awareness, to create activations that provide relevant assistance to consumers at their micro-moments of intent.

CONTEXT

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Split-second moments of consumer attention provide the perfect context for concise, targeted engagements that peak interest and encourage viewers to come back for more.

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Micro-MomentMedia

“You have to figure how to formulate a message in five seconds. There is

a lot more science required to make five seconds matter.”

Warren Zenna, Executive Vice President and Managing Director, Mobext

82% of smartphone users consult their phones while they're standing in

a store deciding which product to buy. One in ten of those end up buying

a different product than they had planned.

“Consumers in the Micro-Moment,” Google/Ipsos, 2015

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05

Micro-Moment Media

New York Times

NYT Election Bot Updates Flow Directly Into Team Chats

bit.ly/nybot

Producer

New York Times

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Micro-Moment Media

Hearst

Sweet Couture Lookbooks For Snapchat Browsing

mikemellia.com/hearst-x-snapchat

Producer

Hearst

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Crowdsourcing accessible data from wearables, sensors and the Internet of Things, content can learn from its environment to anticipate consumer needs and customize output.

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SituationalInteractions

“Data is collectible everywhere and at every step. Smart brands will know a person inside and out

and offer up only what is appropriate.”

Torsten Gross, CSO, Partners & Partners

“The modern mobile consumer expects different contextual user experiences and rewards brands

that pay attention to this context.”

Jeremy Sigel, Head Of Mobile For North America, Essence Digital

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06

Situational Interactions

Nike

Apparel Advertisements Tailored To The Weather

bit.ly/nikeweather

Agency

Weiden+Kennedy Portland

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Situational Interactions

Lloyd's Bank

Data-Inspired For Your Next Step Digital Posters Identify With Citizen’s Financial Needs

lloydsbank.com

Agency

adam&eveDDB

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Artificially intelligent systems, when supported and managed by dedicated human teams, can create targeted activations and respond to individual inquiries at a large scale.

55% of consumers strongly felt that personalization saved them from

browsing irrelevant content.

Going Deeper Survey, Yahoo and IPG Labs, 2016

“We’re now able to go from ‘people’ to ‘person.’ Big Data isn’t simply a collection of a giant

group of generalizations, it’s a colossal combination of unique human beings.”

Tom Bernardin, Chairman and CEO, Leo Burnett

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Personalized Engagement

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Smirnoff

Online Bartender Mixes Drinks Using The #PurePotential Of What’s In The Fridge

vimeo.com/120979574

Agency

Special Group New Zealand

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Netflix

Friends Pre-Roll Ads Respond To Favorite Video Content

bit.ly/friendlypreroll

Agency

Ogilvy & Mather Paris

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Investigate where your consumers spend their extra moments, from social media feeds to audio news podcasts. Create content that supplements, rather than interrupts, their micro habits.

Experiment with micro-moment platforms to retell brand narratives in a succinct manner. Challenge creative teams to remove any moments that are not attention-worthy.

Identify when and where consumers interact with your products, and provide prompts that encourage them to reconnect when they are in the vicinity.

Remember past preferences, behaviors and feedback, in order to interact with consumers in a way that makes them feel valued and heard.

Campaign Triggers For Context

By creating accessible experiences and relationship-building opportunities, companies build advocate networks that appreciate a brand for its products, as well as for its community.

COMMUNITY

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By entering the consumer lexicon, effective branded emojis, hashtags, gifs, and videos encourage users to share their emotions and experiences while keeping the brand top-of-mind.

41.5 billion messages and 6 billion emoticons or stickers are sent around the world every day on

mobile messaging apps.

Swyft Media, 2015

“Smartphones and tablets are devices that invite a certain degree of intimacy

with the user.”

Juan Lindstrom, Director, Media Practice, Millward Brown

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Conversational Assets

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ePoints

Digital Books Tweeted To Waiting Appointments, Expressing Merci Du Retard

merciduretard.com

Agency

Marcel Paris

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Nike

Paris Centre 10KM Runners Share Results With Personalized Race Videos

impossiblesoftware.com/customers

Agency

AKQA Paris

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Relationship-building initiatives connect audiences to a brand story and emphasize connections, rather than products, as the central focus of a brand experience.

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Fan Pairing

“Advertising is more about providing a beacon for fans and 'locations' where they can gather—like-minded people who

then can discuss whatever they want.”

Scott Davis, VP of Marketing Strategy & Innovation, Nickelodeon

“Facilitate a conversation, don't own it— be transparent and communicate human- to-human,

with empathy and honesty.”

Nicole Yershon, Director, Innovative Solutions, Ogilvy & Mather UK Group

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09

Fan Pairing

KLM

Layover With A Local Connects Travelers And Locals

layoverwithalocal.klm.com

Agency

ACHTUNG! Amsterdam

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Fan Pairing

Skol Beats

Matching Masks Introduce Would-Be Friends At Carnival

bit.ly/skolmasks

Agency

Wieden+Kennedy São Paulo

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Live streaming and real-time activations can amplify second screen behaviors to create participatory opportunities for remote fans.

44% of consumers check Facebook or other social networks while watching TV.

GlobalWebIndex, 2015

“Advertisers and agencies need to keep experimenting with the ways to make the most of ‘TV plus’ activities, reaching their most important

customers on more than one screen through creativity and highly motivating messages.”

David Tice, SVP of Media and Entertainment, GfK

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Second Screen Participation

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Simpsons

Homer Answers Audience Questions During #HomerLive Episode

simpsonsworld.com

Producer

The Simpsons

#HomerLive

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Totino’s Pizza Rolls

Fans Buck Their Favorite Gamers Off The Bucking Couch Bowl Rodeo Sofa

bit.ly/couchbowl

Agency

72andSunny Los Angeles

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Invite audiences to events usually closed to them through mobile activations. Allow them to interact with influencers for a more exclusive experience.

Empower consumers to grow within a branded community; whether acquiring more connections or assuming more responsibilities, recognized participants grow in self worth through the brand.

Create assets that prompt organic communication, rather than interrupting it.

Campaign Triggers For Community

By tapping into the ideas, initiatives and goals of consumers, brands can create cost-effective, collaborative campaigns that build deeper connections those affected.

COLLABORATION

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Interactive platforms, which use responsive technologies and AI to adapt plotlines to user input, empower people to control the outcomes of their experience.

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Control The Content

“People want to engage with brands in their own way. Brands can't control all of the

messaging. This is critical for future success.”

Evan Orensten, Founder, CoolHunting

“The consumer is the CEO of content.”

Linda Ong, CEO and Founder, TruthCo

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Control The Content

Clinique

Play With Pop Music Video Remixes Song Genres And Makeup Looks

playwithpop.clinique.com

Agency

Weiden+Kennedy New York

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Control The Content

BMW

Live Voting Controls Decisions Of Film Crew In #X1WhatsNext

instagram.com/p/9Ym2yYFtAu

Agency

KBS New York

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Campaigns that celebrate consumers and encourage them to share their experiences create robust and inclusive messages that identify with every consumer.

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Audience Showcase

“Advertising has been changing to be faster and better given both technology

and a mindset to decommission creativity beyond the creative elite.”

Brian Irving, Global Marketing Director, Airbnb

44% of people are more likely to engage with brands online if they post

real pictures of their products.

Social Annex, 2016

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Audience Showcase

Tiger Beer

Consumer Doodles Inspire Coaster Collaborative Film

tigercoasterfilm.com

Agency

Droga5 Sydney

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Cover FX

Social Media Fans Tag Photos With #ShowUsYourShade To Become Makeup Models

bit.ly/coverselfies

Producer

CoverFX

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Audience Showcase

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Whether providing resources, financial or educational support, businesses are learning they can reap rewards by investing in users—not only engendering loyalty, but also showcasing content that connects to their audience base.

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Creative Patronage

“We are all selfish and want something that matters to us. Brands have to stop talking

to themselves so much and connect.”

Meagan Kempen, New Product Marketing Manager, 3M

“This is marketing for people. This is connecting purpose with purchase. It's doing

good and doing well at the same time.”

Keith Weed, Chief Marketing and Communications Officer, Unilever

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Creative Patronage

YouTube

Workshops And Creative Tools Support Female Storytellers

goo.gl/KA4IOz

Producer

YouTube

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Creative Patronage

West Elm

Small Business Lessons Encourage Makers To Scale Their Work

blog.westelm.com/category/toolkit

Producer

West Elm

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Reduce resources necessary for campaigns by tapping into the extensive and talented fan network.

Reframe conventions around previously static media to enable viewers to take control of their experience.

Offer an elite suite of tools and expertise to give passionate followers the resources they need to realize their dreams.

Encourage consumers to assume new and adventurous roles in their creative output. Consumers can discover hidden talents within a brand ecosystem.

Campaign Triggers For Collaboration

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Rather than pushing activations onto consumers, effective digital engagements adapt brand content to the context and community in which it is experienced—inviting audiences to pull for more information.

Layers of micro-customizations create symbiotic relationships where brand and consumer rely on one another for support and collaboration.

The New Rules For Digital Engagement

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The FutureOf Advertising: Emerging Realities Attention Is Currency

Relevance Is Contextual

Perspective Is Impermanent

Media Talks Back

Learning Breeds Loyalty

Success Leans Qualitative

Experimentation Is Welcome

- 50+ examples of innovative campaigns, with key performance indicators and quantitative results

- Insights and statistics from PSFK’s original global survey of the industry’s leading pioneers and researchers

- New realities changing the relationship between people and brands

- Levers impacting purchase decisions for digital consumers

- Best-use strategies for VR, video and mixed reality

- Trends-centered conversations between international professionals

- A bonus 60+ page summary presentation deck

Shaped by changing audience habits and evolving industry practice, the PSFK Future of Advertising report presents a playbook of strategies to transform digital advertising into richer engagement between brand and consumer.

Get the full report for:

Download the Full Report at: psfk.com/future-of-advertising Access all Reports and Debriefs as a PSFK Member: psfk.com/membership

Get The Full Report@PSFK

#FutureofAdvertising

http://psfk.com/future-of-advertising

http://psfk.com/membership

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About PSFK LabsPSFK Labs 42 Bond Street, 6th Floor

New York, NY 10012

PSFK Labs is an innovation consulting firm. Since 2004, our agency team have helped global corporations concept better products, services, communications and experiences. Our researchers, analysts and designers leverage a unique research process with unparalleled access to experts to identify and develop new business opportunities for brands.

In addition to our client work, PSFK Labs oversees the innovation portal PSFK.com and produces a series of reports, workshops and events that inspire creative professionals in their work.

Insights And Ideation Workshops

PSFK Labs' workshop program integrates trend immersion, innovation ideation and expert speakers to take teams from emerging insights to future-forward ideation in a single day.

If you are interested in organizing a workshop, seeing a presentation of this report, or understanding how PSFK can help your team ideate new possibilities for your brand, contact us at [email protected]

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@PSFK | #FutureofAdvertising LABS

The Future of Advertising


SUMMARY PRESENTATION