Slides to the Guest Lecture at Karel De Grote Hogeschool (Antwerp)

1. the future of advertising
Argus
Labs
bvba
Ÿ
Sint-­‐Michielstraat
9
Ÿ
2000
Antwerp
Ÿ
Belgium
Phone
+32
3
369
96
96
Ÿ
Fax
+32
3
369
95
95
Ÿ
info@arguslabs.be
Ÿ
@arguslabs

2. My name is…!
» Founder: Argus Labs, The Depot,
Finobi, Avydian Cyber Defense
» Blog: filipmaertens.com
» Skills: Technology, PSYOPS, Social
» Background: Secret
» Beliefs: Transhumanist
Media
Marke@ng
Days
2011

3. And I’ll be talking to you about!
» (R)evolutions: Be aware of what’s happening now
» The Next Wave: Some emerging topics
» Mobile
» Social
» Engagement
» How this impacts you: Change or die
» Questions
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4. Signs on the wall

5. Global drivers
» System collapses. Traditional
mechanisms don’t work no more.
» Startup economy. Traditional channels
are too expensive, encouraging out of the
box thinking and virally distributing
creativity in the crowd.
» Social networks bring down
governments.
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6. Global drivers
» Information society and data-driven
economies.
» Age of robotics, augmented reality,
nanotechnologies, artificial
intelligence and a whole lot of magic.
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7. Before we begin

8. New ways. New lingo. New risks.!
» Traditional Marketing Conversational Marketing!
» Consumer Brand Ambassador / Fans!
» Loyalty Engagement!
» Mistakes propagate faster then ever before. There is no incident, there is
only disaster!!
» Be honest! One lie and you’re out.!
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9. First make a good brand!
» A good brand can benefit, a bad brand will die for sure
» So build a good (“hero”) brand first, then build your channel:
Game" Name"
Examples
?
Fame" Claim"
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10. Are you sure about your brand ?!
» Are you really sure you are doing something special ?
» Does this mean something to someone else besides you (and preferably
to a whole lot of people) ?
» Is your name in line with that special thing you do ?
» Are you easy to recognize, and do you look / smell / feel / sound different
from anyone else ?
» Did you find the right words for your story ?
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11. Future Trends

12. #1 The future for mobile will be
the future of everything
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13. It all began here!
» Magic ! Star Trek
anyone ?!
» The feature/smart
phone is a 37% CAGR
market opportunity!
» The hardware is cool,
but the apps are
driving growth!
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14. Cool stuff: the world in your pocket !!
» Your best friend and
personal tour guide in
your pocket.!
» Many sensors that
register nearly
everything.!
» Location, location,
location (or isn’t it?)!
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15. Cool stuff: augmented reality!
» Linking mobile/online with
the offline world!
» The best opportunity for
integrated advertising!
» Rapidly increasing even in
B2B applications!
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16. Advertising in the stores is ‘strange’!
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17. "
The future of mobile advertising is
Push Pull
Profiled. Relevant. On Demand.

18. Mobile advertising is experimenting!
» More interactivity and "apps as ads.”
» Deals and rewards, not just empty pitches
(e.g. Skiip, Groupon Now).
» Companies using cool mobile products to
reach consumers directly, instead of ads
(e.g. Nike+)
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19. Mobile advertising is experimenting!
» Ads helping save you money
on mobile gadgets or services
themselves (e.g. Kindle Special
Offer)
» Mobile ads linking up with
mobile payments to "close the
loop.”
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20. The future of everything!
» The real revolution lies ‘beyond the smart
phone’
» Connected devices will exceed 2 billion
devices by 2020
» The smart phone is your wallet, your identity,
your car keys, house keys, social life and
much more.
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21. The future of everything!
» The next few years will be about thinking of
the phone as a networked sensor
» Sensors will be everywhere; everything will be
recorded and searchable, in real-time. The
idea of privacy will become a quaint idea
embraced by older generations
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22. The future of everything!
» Our mobile device will be our primary
computer
» The future of online is offline. Tap on a mobile
phone, and like magic a bridge springs up
between the interactive world and the real
world
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23. The future of everything!
» It becomes an extension of your mind -- and
the ability to interact with the device without
even looking at it will be the key focus of a lot
of hardware innovations
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24. Mobile App Store Advertising will quickly become inefficient, as will iAd based
campaigns.
Smart Phones will become extensions of our personality, and will be using
intelligent sensors to trigger profiled advertising to come to us as suggestions.
Let’s use the Smart Phone as a rich data-source and delivery device for highly
profiled and relevant pull-advertisements.
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25. #2 Smart advertising is part of
a social ecosystem!
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26. Yay, the Internet got social!
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27. Current situation is noisy!
» Social networks and search engines
What to ea present options. They do not provide
t?
inspiration.
Wh o to meet?
» Current consumer tools are built to find
Who am I ? n?
what you are looking for. They do not
Where to have fu help you discover new things or
What deals? What do I want ? relationships.
What to
buy? » What you like today, you might not like
tomorrow. Social networks do not
What party? reflect who you really are.
» Noise!
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28. Advertising vs. Discovery!
» The emotional score of being advertised (interruption marketing) or being
the one that discovered something cool (serendipitous).
» Traditional advertising is search-based (with limited profiling).
» Future advertising will be discovery-based (with advanced profiling).
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29. No cure for banner blindness!
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30. Effective advertising is integrated!
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31. So, don’t we need something else ?!
» An implicit social network that lives on
your smartphone.
» An assistant that constantly learns who
There is a delicious Sush you are and provides you with relevant
i
bar just around the corner suggestions and inspiration that fits
offering a 25% discount your lifestyle.
on your first time visit.
» Helps you make decisions in your daily
serendipitous moments.
» Is fun to use!
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32. Explicit vs. Implicit Networks!
» E-Mail!
» Facebook!
» Twitter!
» Foursquare!
» Last.FM!
» …!
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33. The
purpose
of
adver@sing
is
to
persuade
people
to
buy
Persuade you to need something. To select a product. To buy it. To share and buy more of it."

34. Closing the (purchase) loop!
Man,
I
a Let’s
se Hmm,
w
m
hung arch
hat
ry
for
food choose to
?
I
want
to
eat
1
billion
results
returned
And
bu Now
what?
y
myse Lack
of
a
meal! lf
inspira
Gon
McDo
i
t
is!
Let’s
go
t
McDon he
alds!
Get
a
discount
or
loyalty
card
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35. Your daunting challenges!
• We need to find a way to make a consumer discover a
product, rather than interupt-advertising a product
• We need to find a way to make your friends propose
you stuff
• We need to come up with an intelligent agent that
becomes your lifestyle agent and proposes you only
relevant products and deals in real-time
• We need to find a way to make you engage with brands
and products
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36. What we’ve learned about consumers!
• Consumers gravitate to what
they like, and when they like
it they share it
• So we need to identify what
consumers like:
– They most likely don’t know
themselves
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37. Consumers need inspiration!!
Intentions
Desire Ideas
s
Ecosystem
of
inspira@on
discovery
con@nuum
Translate
to
keyword(s)
Search
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38. Yes. You can search for vague ideas and concepts
Search = Dead
Social inspiration discovery is the future !

39. Mobile + Social + Location
Sensors
and
Data
Implicit
Networks
Geocoding
&
Data
"
="
good profiling/mining

40. "
Think of future social nets as
Big Mother
Not big brother

41. Profile-driven advertising!
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42. Social Networks will evolve into dynamic Implicit Affinity Networks (IAN) where
consumers will be AI profiled with a much higher accuracy.
As a side-effect, consumers will be encouraged to discover new items (“brands),
that are relevant and exciting to them by means of integrated advertising.
Social Network Analysis (SNA) will be an emerging discipline for brand marketing
and advertising to measure performance and manage social networking potential (or
referred to as influence).
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43. #3 The world will become a
gamified place
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44. Gamification 101!
» It’s not about playing games
» Applied theories in game theory and game based marketing!
» It’s the result of three generations of game playing audiences:
» Use game thinking to do problem solving
» Use game mechanics to engage users
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45. Theme and fun are not correlated!
» Conclusion: theme is a lure!
» Real conclusion: you can make anything fun !!
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46. The spoonful of sugar approach!
» Marry Poppins:“If I make the medicine sweet enough, it won’t taste as
medicine”!
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47. Actually, it’s a loyalty (sugar) program!
Tangible goods! Cash Incentives! Loyalty Systems! Virtual Rewards!
1800s
1930s
1980s
2000s
(“buy 10, get 1 free”)
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48. Loyalty status is now a public process!
» Loyalty systems obscure redemption value: it’s about status!
» Loyalty mechanics were meant to engage with a brand, only very poorly!
» It was private!
» It was random, and not a process (“who understands word of mouth marketing”??)
» It was costly!
» Social media have turned this into a process that is public at a (near)
zero-cost!
» Every decision is now public
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49. What is status worth ?!
100.000 EUR
75.000 EUR
» They don’t play for cash. So, what do they play for ?!
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50. The gamification loop!
Win
Condi@ons
Challenges
Leaderboards
Point
System
Badges
Social
Networking
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51. The unique character of games!
» Remember #1: Users naturally gravitate towards activities that has the
biggest reward!
» Remember #2: Games are designed to engage the player with the
highest reward
GAME
Unforced
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52. Essential characters in a social game!
» Bartle’s Player Types
Achiever" Socializer"
Explorer" Killer"
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53. Beware of disincentives!
» Bad leaderboards can scare aware users !!
» We all played game-machines at least once in our lives (and got discouraged)
» Good leaderboards:!
» You find yourself in the middle (friends below and above)
» Exception: Top 20 when you are in the absolute Top 20
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54. So, how to engage people ?!
STATUS! …
…
ACCESS! …
…
POWER! …
…
STUFF! …
…
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55. So, how to engage people ?!
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56. Game Based Marketing (“Gamification”) is an extremely powerful mechanic
in bootstrapping a brand engaged community. If not, the most powerful.
CTR/CPM/… are becoming obsolete and inefficient metrics. New metrics must be
sought after to measure user engagement.
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57. Impact on you

58. Essential skills for a Marketeer 2.0!
» You need to know business economics.
» Foresee and experiment with technology. Be a geek, embrace
singularity and see technology as a way to support and leverage
creativity.
» Show an entrepreneurial attitude. Stay foolish, stay hungry.
Nurture creativity
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59. Essential skills for a Marketeer 2.0!
» Learn about game theory, as humans are ‘program driven’, not
channel driven.
» Data mining and data modeling basics.
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60. Questions