Some people don’t like change

Change doesn’t much care

The mass market modelThe mass market model

The mass market modelAdvertising funded media

But nowBut it’s all changed now

TV is failing to deliver

Consumers are changing

Consumers are changing

85% have video players68% have dvd players

65% have PCs18% have PVR

10% mp3 playersuk households, ofcom

Consumers are changing

2000/01 - 7.25hrs a week watching tv2004/05 - 6.3hrs a week watching tv

18-34yr male , Nielson

So what are they doing?

22% surf20% watch tv

16% play video games9% go to the movies

6% watch dvds6% read books/magazines

4% listen to music18-34yr male, Nielson

Their behaviour is changing

We assault them with ads everywhere they look

And so they’ve fallen out of love with them

And so they’ve fallen out of love with them

“The ads are as good as the programmes” % who agree with this

statement has halved in the last 10yrs

And so they’ve fallen out of love with them

“Nearly all TV advertising annoys me.”

And so they’ve fallen out of love with them

“Nearly all TV advertising annoys me.”

57% agree in 200394% agree in 2005

And so they’ve fallen out of love with them

And they’re fighting back

PVRS allow you to fast forward adsPop up blockers do exactly that on the web

You can opt out of DM & telephony

The model is changing

In a milestone that singles a fundamental shift in the economics

of the media industry, consumers now spend more on media

than advertisers doMedia Daily News

We now have to go where the consumer takes us

We now have to go where the consumer takes us

Now not only must we consider what our communication objectives are

but we must deliver them in a way that also delivers value

The platforms are changing% who were very/extremely interested in these TV enhancements

0% 10% 20% 30% 40% 50% 60%

On-demand premium-channel movies

On-demand broadcast network shows

On-demand cable network shows

100 digital channels

On-demand first-run movies

One-button weather forecasts

Pause live TV

Easily record all episodes of show

Better sound*

On-screen program guide

Higher resolution picture*

Record one show while watching another

Skip commercials easily

2004 2003

The platforms are changing% who were very/extremely interested in these TV enhancements

DVRfeatures

0% 10% 20% 30% 40% 50% 60%

On-demand premium-channel movies

On-demand broadcast network shows

On-demand cable network shows

100 digital channels

On-demand first-run movies

One-button weather forecasts

Pause live TV

Easily record all episodes of show

Better sound*

On-screen program guide

Higher resolution picture*

Record one show while watching another

Skip commercials easily

2004 2003

VODfeatures

The clients are changing

“It’s clear we need new channels to reach consumers. Brands that rely too heavily on

mainstream media, or that are not exploring new technologies and connection points, will lose touch.”

Jim Stengel P&G

The clients are changing

“Where will Coke go? To accelerate the convergence of Madison & Vine,

a convergence of the trinity in brand building; content, media and marketing.”

Steve Heyer, Coca Cola

The clients are changing

“Interruption advertising is in question, but I believe it will continue in to be in the marketing mix.

The challenge is to engage whole sets of consumers who are not convinced by traditional advertising methods.”

Michael Wolf, McKinseys

And TV continues to suffer

P&GUnileverHeineken

And TV continues to suffer

Carat USA predicts a $55billion switch out of

TV in 2009

And TV continues to suffer

McKinsey predictsTV will be 35% less effective in 2010

compared to 1990

And TV continues to suffer

Cap Gemini say,TV doesn’t work for

car brands

And TV continues to suffer

Deutsche Bank say,TV no longer works for

established brands

So what are the smart people doing?

Subservientchicken.comBurger King - Crispin Porter + Bogusky, Miami

http://www.subservientchicken.com

Haircut Virgin - Crispin, Porter + Bogusky, Miami

http://virginatlanticjetset.com/haircut/

Come Clean - Method Cleaning

Crispin Porter + Bogusky, Miamiwww.comeclean.com

Come Clean - Method Cleaning

Crispin Porter + Bogusky, Miamiwww.comeclean.com

Counterfeitmini.com Crispin Porter + Bogusky, Miami

Counterfeitmini.com Crispin Porter + Bogusky, Miami

This is only the beginning

“Consumers are beginning in a very real sense to own our brands & participate in their creation….. We need to learn

to let go.”

AG Lafley CEO, P&G

Coke v Mentoshttp://www.youtube.com/watch?v=nrCaONL0X9U

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Coke

Mentos

25.10.07

“Tell me and I’ll forget, Show me and I’ll remember. Involve me and I’ll understand.”

Confucius

Sony v Adidas

Sony

Adidas

“Coca Cola isn’t a drink it’s an idea, like music, it’s a feeling. We’re headed to ideas…. Ideas that bring

entertainment value to our brands, ad ideas that integrate our brands into entertainment. We’re moving to

ideas that elicit emotion and create connections”

Stehen Heyer CEO, Coca Cola

BMW v Halo2

BMW

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Halo2

Rule 1: the brand

Rule 2: all advertising is interactive

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Viral

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Wassup 8 years later

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Rule 3: integration is a state of mind

Obama ringtones

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Rule 4: everything is media

Rule 5: there are no rules

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It worked

It’s time to experiment