Trends in Advertising's Golden Age

As I previously mentioned, I was lucky enough to attend the ad:tech conference in Chicago at the beginning of the month. I have put together a brief summary presentation for some people and thought I would share it with all of you. The first section is essentially a repeat of "The New Buzz Word in Advertising" (posted September 3rd) so I will skip that and hit you with part 2 on industry trends (part 3 on social media will be posted midweek). Enjoy

The largest obvious trend is towards digital and social media. Though search marketing currently receives almost two-thirds of digital ad spend, it is forecasted that by 2014 that number will drop to 15% and social media will take the stage at 34% followed closely by mobile advertising at just over a quarter of ad spend. Still, only 6-10% of ad budgets are for online, but that number is forecasted to grow to 20% in the next half-decade. This shift to social media is starting the age of collaboration and a return to true marketing where the customer is the focus and understanding and meeting customer requirements is paramount. For years companies tried to down-play negative word-of-mouth, but in this new age being transparent with shortcomings makes the company more authentic and trustworthy. Southwest Airlines did not try to hide the fact that a hole was discovered in one of their airplanes, rather they used Twitter to broadcast an announcement that all planes would be thoroughly checked for potential problems, increasing consumer trust. For success, companies need to be prepared for the instant feedback that comes with the two-way conversation and be ready to act on it. Far too often people try to advise on something they haven’t actually used and thus cannot fully comprehend. It will become essential for account managers and planners to not only understand social media, but actively embrace the potential it has. By fully committing yourself to exploring such a rich medium (being on Facebook, using Twitter, etc.), the potential to generate new ideas for a client is endless.

Many companies (including advertising agencies) are beginning to reorganize themselves to stay aligned with the growth of the digital segment, as they deem it essential to their future success. This reorganization is taking on various looks across the industry, some companies are creating a separate division or acquiring a digital arm while others are making it an extension of public relations, or creating “community managers.” The key point is that all are developing integrated departments that are a strong part of the team, but also a strong part of the community, listening and engaging on a regular basis.

Data is the new creative. This comment leaves many in the industry scratching their heads in confusion or in down-right anger (especially among creative departments). What this means is that in the past consumers could easily be attracted or seduced by extraordinary creative, but the sheer quantity of advertisements a person is exposed to on a given day has numbed that attraction. The new key to attracting and developing new customers is to understand the customer at even the most basic level. Account managers need to develop a more well-rounded skill set that focuses on both the logic side and the creative side of the job. We will soon learn that advertisements in the digital space will only be successful if they are effectively targeted and relevant to the consumer. Thus, we need data to increase our understanding of the consumer and to communicate what they want to hear, in a way they want to hear it. This data does not need to come from large-scale research projects, rather it can be generated by observing, listening, and communicating with consumers. Once you have found the people who will listen, close the deal with excellent creative work.

Perhaps one of the biggest trends that cannot be ignored is the adoption of the Internet and social media by mothers across North America. In 2006, only 1 in every 10 moms used a type of social media like Facebook. That number has now skyrocketed to 63% and young mothers are 123% more likely to have 3 or more social networks then the rest of the population. Even though less then 2 in every 10 cell phones are “smart phones,” 91% of moms don’t leave their home without them and nearly three-quarters use their phones regularly to stay in touch with family and friends. This trend is allowing proactive agencies to better connect with a crucial demographic by taking advantage of social media. Unilever was able to successfully leverage digital media for their Suave product line by creating “webisodes” called In the Motherhood based on real-life submissions from moms about challenges around being a mother (the idea was later picked up by ABC and turned into a television series).

[BecomeMaverick]