stop wasting money on advertising (social media week 2013)
DESCRIPTION
T4G Research's Paul Barter examines how effective promotion no longer requires a big budget.TRANSCRIPT
Stop Wasting Money On AdvertisingHow the epicentre of marketing shifted from Madison Avenue to Silicon Valley
Paul Barter, December 2013
In the old world, you devoted 30% of your time to building a great service and 70% of your time to shouting about it. In the new world, that inverts.
Jeff Bezos
Half the money I spend on advertising is wasted. The trouble is, I don't know which half.
John Wanamaker
Today’s marketing world is broken… We are still too dependent on marketing tactics that are not in touch with today’s consumer.
Jim Stengel, Global Marketing Officer, P&G
Broadcasting an ad on television or in a newspaper is admitting you have no idea who your customers are.
Gary Loveman, CEO, Harrah’s
82% of TV adverts generate negative ROI.Robert Wollan, Nick Smith, and Catherine Zhou, Accenture
But whatabout
technology?
Today’s talk in one slidePromotional effectiveness
IT cost
First, a marketing review.
SegmentTarget
Position
ProductPricePlacePromotion
1950s 1970s
1995 2004
… 1930 1950 1980 1995 2000 2004 2012
Part of the mix can be cheap or free
Paid
Owned
Earned
A new lens on promotion
TrucksBottlesSigns
Social media presence+ all from before
Evangelical customersViral messagesQuantifiable word of mouth
Display adsSearch ads+ all from before
RadioTVPrintOut of home Flyers
Mass market+ all from before
Mailing listsLoyalty programs+ previous
Website+ previous
PAID OWNED EARNED
“Celebrity”/superstar influencers+ all from before
Word of mouth
More word of mouth
Email forwardsLinks to promotions
Today.
PAID
OWNED
EARNED
Onwards and upwards with the travel industry
Click
to be advertised at!
VW vs. Mercedes-Benz
What to do
Source: T4G.com
What comes now?1. Make great stuff 2. Tell the story3. Paid, owned, earned4. Digitally savvy talent5. Listen, measure, respond
We are built on a solid foundation with great people who are creative, dedicated
and passionate about what they do.Paul BarterVice President, [email protected]@BarterPaul
Thanks!