The Future of Advertising: Defining the New Rules of Consumer Engagement

The Future of Adver.sing: Deﬁning the
New Rules of Consumer Engagement

PIERS FAWKES, Founder and President, PSFK
SCOTT LACHUT, President, Research and Strategy, PSFK

LABS
@PSFK
#FutureofAdvertising
Future of
Advertising
2017
The New Rules Of
Digital Engagement
psfk.com/future-of-advertising

About PSFK
BUSINESS INTELLIGENCE
Since 2004, PSFK has helped global corporations concept
better products, services, communications and experiences.
Our researchers, analysts and designers leverage a unique
research process with unparalleled access to experts to identify
and develop new business opportunities for brands through:
PSFK.com Innovation Portal
• Daily Content
• Trends Report
Events
• Immersion Workshops & Tours
• Expert PanelsI
• Conferences
Consulting
• Trends-Led Strategy
• Product And Service Concepting
• Future Customer Journeys
• Prototyping
• Brand Development

LABS
@PSFK
Diminished  
Attention Spans
The human attention span
shortened from 12 seconds in
2000 to 8 seconds in 2013.
Attention Spans: Consumer Insight,
Microsoft, 2015
New Interfaces :  
Chat And Voice
Millennials spend equal or  
more time in messaging apps  
than on social networks.
Brand Engagement Report,  
Frank N. Magid Associates, 2015
Ad Blocking
Spending on digital video
advertising increased almost  
60% in 2014, while the number of ad
blockers rose from 54 million to  
121 million.
Ad Blocking Goes Mainstream,  
PageFair, 2015
Artificial Intelligence
59% of online traffic stems
not from humans, but from
query-focused bots.
Distill Networks, 2015
The Audience 
Is Changing

LABS
@PSFK
The PSFK Advertising Survey 2016 polled over 150 professionals from brands, agencies, media outlets
across 14 countries to understand how advertising professionals view the future of their industry.
The Industry
Is Changing
50%
of brands think that
advertising is more
important than ever.
Advertising Is Still Important
56%
of the industry says
advertising agencies are  
less important.
But Agencies Are Less So
44%
agree that media outlets
are less important as well.
49%
of agencies worry that the
agency is less important
than before.
Agencies Are Struggling To Find Their Role
80%
of media outlets think the
agency is less important
than before.
Media Outlets Are Encroaching On  
Agency Responsibilities
Media Outlets Are Fading Too

The New
Rules Of
Consumer
Engagement

CONTENT
Brands that share advice,
experiences or compelling
narratives invite consumers
to seek out their content
rather than forcing exposure.

LABS
@PSFK
Owned entertainment channels
give brands the full creative
control to produce high-quality
content that audiences actively
seek out during leisure time.
Owned media is now trusted as a source
of general news and information by
46% of the population. It is now more
trusted than social media.
Edelman Trust Barometer, 2016
01
Story Selling

LABS
@PSFK
Lifetime & Wayfair
Viewers Can Buy
Everything They See on The
Way Home TV Series
@Wayfair
Producer
A+E Lifetime
LABS
01
Story Selling

LABS
@PSFK
Virtual reality, interactive video, and
immersive content create activations
that introduce users to different
perspectives, refreshing routine
brand experiences and amplifying
emotional appeals.
“I don’t want to take you to a place you
can already go. It’s about taking you to a
place you can’t go or can’t experience in
the physical world.”
Dan Ferguson 
Director of Digital Interactive, ReelFX
02
Diversified
Perspectives

LABS
@PSFK
02
Diversified Perspectives
Google
Small World Pop-up
Translation Restaurant
Unifies Cultures Through
Food
#EverybodySpeaksFood
Agency
m ss ng p eces
LABS

LABS
@PSFK
R&D initiatives and industry
expertise inform educational
messaging that helps customers
optimize product use and
improve their routines.
“When branded education is used in  
the correct way, it doesn’t feel like you’re  
being advertised to. You are being  
useful to someone who is loyal anyway.”
Nicole Yershon  
Dir. for Innovation Solutions, Ogilvy & Mather UK
03
Brand-Led 
Education

LABS
@PSFK
03
Brand-Led Education
Quaker Oats
Amazon Echo’s Spoken
Instructions Guide Users
Through Oats Recipe
@Quaker
Producer
Quaker Oats
LABS

LABS
@PSFK
Mixed media, action-triggered
sensors and mobile applications
transform products into messaging
tools, relaying anything from
product information to exclusive
content.
“Partner with product to align on a joint
vision. Product and marketing need to find
common language to succeed together.”
Brian Irving  
Global Marketing Director, Airbnb
04
Product 
As Media

LABS
@PSFK
04
Product As Media
Coca-Cola
Wish In A Bottle
Triggers Shooting Stars
@CokeIsrael
Agency
Gefen Team, Israel
LABS

LABS
@PSFK

CONTEXT
Targeted messaging is evolving
from general situational awareness,
to create activations that provide
relevant assistance to consumers at
their micro-moments of intent.

LABS
@PSFK
Split-second moments of consumer
attention provide the perfect
context for concise, targeted
engagements that peak interest
and encourage viewers to come
back for more.
05
Micro-Moment 
Media
“You have to figure how to formulate a message
in five seconds. There is a lot more science
required to make five seconds matter.”
Warren Zenna  
EVP and Managing Director, Mobext

LABS
@PSFK
05
Micro-Moment Media
Campari America
Lyft Ride Credits For Drinkers
Who Check Into Bars on Kiip
@CampariAmerica
Producer
Kiip
LABS

LABS
@PSFK
Crowdsourcing accessible data
from wearables, sensors and the
Internet of Things, content can
learn from its environment to
anticipate consumer needs and
customize output.
06
Situational 
Interactions
“Data is collectible everywhere and at
every step. Smart brands will know a
person inside and out and offer up
only what is appropriate.”
Torsten Gross, CSO, Partners & Partners

LABS
@PSFK
06
Situational Interactions
Nike
Apparel Advertisements
Tailored To The Weather
@Nike
Agency
Weiden+Kennedy Portland
LABS

LABS
@PSFK
Artificially intelligent systems,
when supported and managed
by dedicated human teams, can
create targeted activations and
respond to individual inquiries
at a large scale.
55% of consumers strongly felt that
personalization saved them from  
browsing irrelevant content.
Going Deeper Survey, Yahoo and IPG Labs, 2016
07
Personalized 
Engagement

LABS
@PSFK
07
Personalized Engagement
IBM Watson
Cognitive Banner Ads Answer
Consumer Questions
@IBMWatson
Producer
IBM / The Weather Channel
LABS

LABS
“Is Flonase safe for my
five-year-old son?”

COMMUNITY
By creating accessible experiences
and relationship-building
opportunities, companies build
advocate networks that appreciate
a brand for its products, as well as
for its community.

LABS
@PSFK
By entering the consumer lexicon,
effective branded emojis, hashtags,
gifs, and videos encourage users to
share their emotions and experiences
while keeping the brand top-of-mind.
41.5 billion messages and 6 billion
emoticons or stickers are sent
around the world every day on
mobile messaging apps.
Swyft Media, 2015
08
Conversational  
Assets

LABS
@PSFK
08
Conversational Assets
Netflix
Pop-Up Gilmore Girls
Snapcodes Unlock Photo
Filters
@GilmoreGirls
Producer
Snapchat
LABS

LABS
@PSFK
Relationship-building initiatives
connect audiences to a brand story
and emphasize connections, rather
than products, as the central focus
of a brand experience.
09
Fan Pairing
“Advertising is more about providing a beacon
for fans and 'locations' where they can gather
—like-minded people who then can discuss
whatever they want.”
Scott Davis 
VP of Marketing Strategy & Innovation, Nickelodeon

LABS
@PSFK
09
Fan Pairing
KLM
Layover With A Local
Connects Travelers And
City Residents
@KLM
Agency
ACHTUNG! Amsterdam
LABS

LABS
@PSFK
Live streaming and real-time activations
can amplify second screen behaviors to
create participatory opportunities for
remote fans. 44% of consumers check Facebook or
other social networks while watching TV.
GlobalWebIndex, 2015
10
Second Screen
Participation

LABS
@PSFK
10
Second Screen 
Participation
NBA InPlay
Sports League Creates
Fantasy Game That Fans Can
Play During Live Broadcasts
@NBA
Agency
NBA Digital
LABS

COLLABORATION
Tapping into the ideas, initiatives
and goals of consumers, brands can
create cost-effective, collaborative
campaigns that build deeper
connections those affected.

LABS
@PSFK
Interactive platforms, which use
responsive technologies and AI to
adapt plotlines to user input,
empower people to control the
outcomes of their experience.
11
Content
Controls
“People want to engage with brands in their
own way. Brands can't control all of the
messaging. This is critical for future success.”
Evan Orensten 
Founder, CoolHunting

LABS
@PSFK
11
Content Controls
Massive Attack x
Fantom
Songs Remixed With
Listeners’ Heartbeats,
Location and Movement
@MassiveAttackUK
Agency
Fantom
LABS

LABS
@PSFK
Campaigns that celebrate consumers
and encourage them to share their
experiences create robust and
inclusive messages that identify  
with every consumer.
12
Audience
Showcase
44% of people are more likely to engage
with brands online if they post real
pictures of their products being used.
Social Annex, 2016

LABS
@PSFK
Cover FX
Social Media Fans Tag Photos
With #ShowUsYourShade To
Become Makeup Models
@CoverFX
Producer
CoverFX
LABS
12
Audience Showcase

LABS
@PSFK
Whether providing resources,
financial or educational support,
businesses are learning they can
reap rewards by investing in users
—not only engendering loyalty,
but also showcasing content that
connects to their audience base.
13
Creative 
Patronage
“We are all selfish and want something that
matters to us. Brands have to stop talking to
themselves so much and connect.”
Meagan Kempen 
New Product Marketing Manager, 3M

LABS
@PSFK
13
Creative Patronage
YouTube
Workshops And Creative
Tools Support Female
Storytellers
@YouTube
Producer
YouTube

LABS
@PSFK
The Future Of Advertising:
Emerging Realities
Attention Is
Currency
Relevance Is
Contextual
Perspective Is
Impermanent
Media Talks
Back
Learning
Breeds
Loyalty
Experimentation
Is Welcome
@PSFK
Success
Leans
Qualitative

The Future of Advertising: Defining the New Rules of Consumer Engagement

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (10)

Similar to The Future of Advertising: Defining the New Rules of Consumer Engagement

Similar to The Future of Advertising: Defining the New Rules of Consumer Engagement (20)

More from National Retail Federation

More from National Retail Federation (20)

Recently uploaded

Recently uploaded (11)

The Future of Advertising: Defining the New Rules of Consumer Engagement