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

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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

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Usage is focused on constant entertainment and truth seeking through information.

STUDY RESULTS (CONSUMER MEDIA PERCEPTIONS)

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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)

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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

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• 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)

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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

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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

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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

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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 Keenangene@thecollectivefactory.com415-218.7369

http://www.thecollectivefactory.com