nj ad club preso 2009 adv in econ downturn

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Please Note: This presentation for the NJ Ad Club was originally given in a room without a projector or screen. The presentation was done “the old fashioned way” – hand written on a large white paper pad.

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Presentation for the NJ Ad Club regarding advertising during economic downturn. How to leverage media, message and maximize budget. More importantly, what the future holds for marketers.

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Page 1: Nj Ad Club Preso 2009   Adv In Econ Downturn

Please Note: This presentation for the NJ Ad Club was originally given in a room without a projector or screen. The presentation was done “the old fashioned way” – hand written on a large white paper pad.

Page 2: Nj Ad Club Preso 2009   Adv In Econ Downturn

New Jersey Ad Club

Advertising in Times of Economic Downturn

Gregory Padley

Page 3: Nj Ad Club Preso 2009   Adv In Econ Downturn

Staying The Course

GE founded in panic of 1873 DISNEY founded during recession 23- 24 HP founded = GREAT DEPRESSION MICROSOFT founded 1975 iPOD launched during 2001 recession

Page 4: Nj Ad Club Preso 2009   Adv In Econ Downturn

Staying The Course

McKinsey Study Those who increased mktg spend were ONLY

ones whose profit rose McGraw Hill Research

Reviewed 600 companies 1980 – 85 Sales rose 256% for those who continued adv

1930’s Depression Kellogg’s maintained while Post decreased Kelloggs dominated cereal for next 50 yrs

Page 5: Nj Ad Club Preso 2009   Adv In Econ Downturn

Is There a CEO or CFO in the Room?

Someone who would make the final decision to “stay the course”?

No. So how do we maximize what budget we do have and forge

ahead?

Page 6: Nj Ad Club Preso 2009   Adv In Econ Downturn

Media

Fish where the fish are Minimize waste Market only to those most likely to buy

Leverage your spend Value added from media partners Partnerships

Events / Contests / Promotions Sponsored content Introductions to prospects and other advertisers

you can partner with

Page 7: Nj Ad Club Preso 2009   Adv In Econ Downturn

Message

Craft your message using the two V’s

V # 1 is VALUE

Play up the ‘practical side’ Value proposition – prove it

Page 8: Nj Ad Club Preso 2009   Adv In Econ Downturn

Message

Craft your message using the two V’s

V # 2 is VALUES

Core Values Core Values of the Brand Core Values of Life

People are more sensitive during tough economic times

Leverage feelings of family, friends, security

Page 9: Nj Ad Club Preso 2009   Adv In Econ Downturn

Case Study – De Beers

De Beers Shadows Campaign

Situation: Selling diamonds during the recession of the

early 1990’s Luxury item sales in decline

Page 10: Nj Ad Club Preso 2009   Adv In Econ Downturn

Case Study – De Beers

Stepped program lead prospects along path to purchase Sentimental message for women Diamond education for men

Increased sales 8% annual avg over 3 yrs At recession end profits recovered by 21%

Page 11: Nj Ad Club Preso 2009   Adv In Econ Downturn

Case Study - Grenada

Grenada Tourism Q4 2008

Situation: Recession news abounds Caribbean travel across region DOWN Grenada begins new American Airlines flight

from NYC

Page 12: Nj Ad Club Preso 2009   Adv In Econ Downturn

Case Study - Grenada

Focused message where consumer most likely to purchase On Line Travel Agents

Expedia, Orbitz, Travelocity, TripAdvisor Targeting New York area travelers Consumers searching for similar destinations

Orbitz Oct. room nights UP 15% YOY Expedia Q4 room nights UP 25% Travelocity Dec. room nights UP 19%

Page 13: Nj Ad Club Preso 2009   Adv In Econ Downturn

3 Strategies

New creative, targeting or media opportunities

Strengthen market position against rivals Keep going

Page 14: Nj Ad Club Preso 2009   Adv In Econ Downturn

Will This Work in the Future?

# Years to 50 Million Users Radio 38 years TV 13 years Internet 4 years iPod 3 years Facebook 100 Million users in 9 months iPod app downloads 1 BILLION in 9 mos

Page 15: Nj Ad Club Preso 2009   Adv In Econ Downturn

State of Consumers & Tech

Forrester Research 2009 consumer UNRECOGNIZEABLE from

1999 consumer Consumers – all ages – moving to online Americans spend 8 hrs ‘offline’ AND 8 hrs

‘online’ a week 25% of US households have a DVR

Page 16: Nj Ad Club Preso 2009   Adv In Econ Downturn

State of Consumers & Tech

Forrester Research 88% of people under 40 are regular Internet

users Half of Americans research a product online

before they purchase Half of US adults play computer games Digital will not abate, it will intensity

Page 17: Nj Ad Club Preso 2009   Adv In Econ Downturn

Marketers Say….

Digital is no longer experimental DM, TV, Print, Outdoor, Newspapers have

lost effectiveness 50% of marketers agreed

Social Media, Online Video, Mobile effectiveness increase +70% of marketers agreed

Page 18: Nj Ad Club Preso 2009   Adv In Econ Downturn

Digital Spending

Overall Digital 12% of overall spend in 2009 21% of overall spend projected for 2012

Online Video Ads $870 million in 2009 $3 billion in 2014 projected

Social Media $716 million in 2009 $3 billion in 2012 projected (not incl. display)

Page 19: Nj Ad Club Preso 2009   Adv In Econ Downturn

Where are your customers?

Where are your competitors?

Page 20: Nj Ad Club Preso 2009   Adv In Econ Downturn

Innovate or Die

Page 21: Nj Ad Club Preso 2009   Adv In Econ Downturn

3 Strategies ~ Revisited

1.New creative, targeting or media opportunities Reach out and partner with media If you are not already there, start online

2. Strengthen market position against rivals Reach out, partner, leverage relationships

3. Keep going Buying cycles have increased Nurture leads – Social Media & Traditional

Page 22: Nj Ad Club Preso 2009   Adv In Econ Downturn

Recession 101:

No One Can Repossess Your Future

Page 23: Nj Ad Club Preso 2009   Adv In Econ Downturn

Thank You!

Gregory Padley

My Blog: www.5691gerg.com

LinkedIn: www.linkedin.com/in/gregpadley

Twitter: www.twitter.com/5691gerg

Delicious: http://delicious.com/5691gerg

(most of the source material for this presentation is book marked in Delicious)