ad groms presentation

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ADVERTISING TO PRIMATES

Monday, 17 October 2011

Why advertise?


“Properly practicedadvertising MUST result

in greater sales more economically achieved.”

- Bill Bernbach


The naive approach

The media approach

The creative approach

The economic approach

The psychological approach

DETERMINING THE EFFECTS OF ADVERTISING


WHO INFLUENCES MORE MARKETERS TODAY?

Daniel Bernoulli (8th February, 1700 to 8th March, 1782)

Mark Zuckerberg(b. 14th May, 1984)


WHO INFLUENCES MORE MARKETERS TODAY?

Daniel Bernoulli (8th February, 1700 to 8th March, 1782)

“Rational consumers make decisions based on the expected outcomes

of their decisions”*

*Source: Exposition of a New Theory on the Measurement of Risk, 1738


“Economists, and other social scientists with an interest in decision-making, have found that the difference between the rational model (how decisions ought to be made) and the real world (what decisions are made) is so significant that rational models are of little use”

*Source: http://www.gresham.ac.uk/lectures-and-events/why-do-people-play-the-lottery-make-up-your-mind


http://www.gresham.ac.uk/lectures-and-events/why-do-people-play-the-lottery-make-up-your-mind

http://www.gresham.ac.uk/lectures-and-events/why-do-people-play-the-lottery-make-up-your-mind

COGNITION

BEHAVIOUR

&

NEW INSIGHTS INTO...


1. What people are really like2. How people really choose brands

3. How communication really works

4. Implications for doing your job

1. What people are really like



2. How people really choose brands3. How communication really works


2. How people really choose brands




3. How communication really works4. Implications for doing your job






4. Implications for doing your job4. Implications for doing your job


A SIMPLE TEST TO MAKE SURE YOUʼRE AWAKE!

A bat and a ball together cost $1.10.

If the bat costs $1 more than the ball, how much does the ball cost?


HISTORIC VIEW OF THE BRAIN

The “rational mind fallacy”

Supremacy of reason

Emotions are dangerous and need controlling


20TH CENTURY DEVELOPMENTS

Mind as computer


DAMASIO’S DISCOVERY

“A brain that canʼt feel canʼt make up

its mind”


IN OTHER WORDS...

Reason and emotions are linked

The thinking brain depends on the emotional brain

Emotional processing, not reason, dominates our decisions


Emotion = master

Reason = servant


WHY ARE EMOTIONS THE MASTER?

“When evolution was building our brain, it didnʼt bother to replace all those emotional processes with new operations under our explicit control.

The result? The uniquely human parts of the mind depend on the primitive mind underneath”

The Decisive Moment, Johan Lehrer


EVO

LUTI

ON


LEARNINGS FROM LT. COMMANDER RILEY

Much of what we “think” is really driven by our emotions

Every feeling is really a summary of unconscious data

Feelings are an accurate short-cut... a compression of decades worth of experience


WHATʼS THE RIGHT ANSWER?

A bat and a ball together cost $1.10.

If the bat costs $1 more than the ball, how much does the ball cost?

The ball is 5¢The bat is $1.05


System 1 System 2

“Intuitive / Emotional” “Reasoning”

Honed by evolution~100,000,000 years old

Still in beta~100,000 years old (?)

Automatic Controlled

Fast Slower

Non-conscious Conscious

Non-verbal Verbal

Drives decision making Can think, but canʼt decide

95% 5%

TWO SYSTEMS


IN SUMMARY


LIKE HOMER, WE FAVOUR THE LEAST LINE OF RESISTANCE

Cognitively and behaviourally!


SYSTEM 1 HEURISTICS LEAD TO COGNITIVE BIASES

Bandwagon effect

Base rate fallacy

Bias blind spot

Congruence bias

Choice-supportive bias

Confirmation bias

Contrast effect

Déformation professionnelle

Denomination effect

Distinction bias

Endowment effect

Experimenter's or Expectation bias

Extraordinarity bias

Information bias

Irrational escalation

Focusing effect

Framing

Hyperbolic discounting

Illusion of control

Impact bias

Information bias

Irrational escalation

Just-world phenomenon

Loss aversion

Mere exposure effect

Money illusion

Moral credential effect

Need for Closure

Neglect of probability

Normalcy bias

Not Invented Here

Omission bias

Outcome bias

Neglect of probability

Normalcy bias

Not Invented Here

Omission bias

Outcome bias

Planning fallacy

Post-purchase rationalization

Pseudocertainty effect

Reactance

Restraint bias

Selective perception

Semmelweis reflex

Status quo bias

Von Restorff effect

Wishful thinking

Zero-risk bias


AVAILABILITY HEURISTIC

Risk assessment by feeling not facts

Recency and salience versus incidence

So fear of fear of plane crashes higher than fear of skin cancer from sunbathing

The emotional brain prevailing over the rational


SUMMARY

1. Human beings make decisions primarily on emotions and then post-rationalise their decisions


SHOPPING IS COMPLEX & OPEN-ENDED

Buying decisions cannot be made algorithmically


System 1

System 2

Cross-checks & finalises the decision.

Thought can challenge & re-direct system 1

But post-rationalisation is more common.

We are always assessing brands unconsciously.

Long before we choose, system 1 has short-listed factors & options.

When we come to choose, feelings & intuitionsguide our thinking.


System 1 System 2When decision is complex When decision is simple

In early phase of decision In final phase of decision

For regular purchases When we buy for 1st time

When products are similar When products are functionally different

For cheap items For expensive items

For low risk items For high risk items

For impulse purchases For considered purchases

Time poor Time rich

When we are highly aroused When we are calm

When we are not paying attention When we are paying close attention

When we are happy? When we are grumpy?

DECISION STATES

Try and think of a purchase that is pure System 2Monday, 17 October 2011

EFFECTIVE COMMUNICATION

Appeal to emotions / feelings not logic / reason

How we say things may be much more important than what we say

This includes; humour, gesture, etc!

Communication may influence us without us consciously being aware / thinking

Changing our minds / teaching new things, not easy tasks for communication


PROBLEM IS...

Rational mind fallacy

Rational message fallacy


TYPICAL QUESTIONS

What is the main message of the communication?

What is the single-minded product proposition ?

How believable is this message?

What is unique about this message?

What are the supporting reasons to believe?

How likely is this ad to persuade you to buy the product?


SONY BRAVIA

Objectives:

Create an emotional attachment that justifies the Sony price premium

Encourages consumers to commit to the brand before they reach the point of sale

Help Sony retake the number one position in the flat screen TV market.

Rational approach

“Superior colour definition”


SONY BRAVIA

Results:

Bravia-advert.com had 2m visitors /1.8m TVC viewings in the 3 months after launch

Est. 5.3m viewings on Google Video, YouTube and others

Sales resulted in product shortage (UK); orders in Dec 05 delivered in March 06

Sony’s LCD MS grew to 14 % (vs 10%, EU)


RelContent

Relationship

Content = message or the “communication”Typically; clear, recognisable, easily analysed,

rational (and fades quickly!).

Relationship = non-verbal or the “meta-communication”

Typically: subtle, hard to analyse, highly emotional (and endures!).

ITʼS NOT WHAT YOU SAY…


Associations?Spectacular

OriginalGorgeous

MesmerisingLovely music

Take out?Simply “the best”

Worth paying more forDesire


SUMMARY


2. Communication is not just about message but about relationship


... important


MAN IS A COMPULSIVE COPIER

“We are a WE species that thinks we are a

ME species”


COPYING IS INVALUABLE TO HUMANS


BUT COPYING CAN LEAD TO PROBLEMS

Are your friends making you fat? Or keeping you slender?

According to new research from Harvard and the University of

California, San Diego, the short answer on both counts is "yes."


SOCIAL LEARNING FROM BIRTH


COPYING CONTINUES THROUGHOUT LIFE


Social learning, not independent decision-making


SIX DEGREES OF KEVIN BACON


SUMMARY


2. Communication is not just about message but about relationship

3. Decision making is a social rather than an individual process


SUMMARY

Talk to the heart

Itʼs not what you say, but how you say it

Make your clientʼs brand / product famous


A CONTROVERSIAL POINT OF VIEW!

We all recognise the importance of creative style and emotional resonance, but we tend to think of these things as a means of

getting the message across.

This new viewpoint suggests that, to a large

extent, style and feel are the message!


This means that we may well have to

rethink pretty much everything we do in our day to day jobs...


BUT THE GOOD NEWS...

We will all be happier because we prefer making this sort of communication

The public will be happier because they like this communication better too

CEOs/CFOʼs will be happier because their businesses will be more successful


OVER TO YOU...

HOW DOES THAT MAKE YOU FEEL?

WHAT MIGHT THE IMPLICATIONS BE?

For the briefing and creative process?

For research and evaluation?

For media and channel usage?


MY THOUGHTS (FOR WHAT IT’S WORTH!)

Define the advertising goal as being to build ‘saleability’

Stop talking. Mostly about messages.

Start talking about associations and about relationships.

Recognise the power of implicit communication.

Shift your focus away from the abstract message or idea to the advertisement as a whole.

Resist the urge to over-analyse and over control.


How exciting to be back at the beginning again,

knowing absolutely nothing...


TITLE TEXT

THANK YOU

ABOUT.ME/DAVIDWARREN


ad groms presentation

Business

ball cost

bat costs

theprimitive mind

systems system

damasios discoverya

years old

signicantthat rational

thereal world