1. CLIMATE CHANGE
managing the modern marketing landscape
jon bradshaw, marketing novice
ad:tech tuesday 12th march 2013
1

2. THE IRONY OF TALKING
ABOUT AUDIENCE WHEN
NOBODY EVER LISTENS
TO YOU
jon bradshaw, marketing novice
ad:tech tuesday 12th march 2013
2

3. WHY SOCIAL MEDIA
DOESN’T WORK WHEN
YOU’VE GOT NO
FRIENDS, JON
jon bradshaw, marketing novice
ad:tech tuesday 12th march 2013
3

4. BIGMOUTH STRIKES AGAIN
jon bradshaw, marketing novice
ad:tech tuesday 12th march 2013
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5. FUUUCCCKKK!
jon bradshaw, marketing novice
ad:tech tuesday 12th march 2013
5

6. CLIMATE CHANGE
managing the modern marketing landscape
jon bradshaw, marketing novice
ad:tech tuesday 12th march 2013
6

7. Why Climate Change?
• The data is indisputable. There’s a seismic shift underway.
• A large number of people, especially the manufacturers of
marketing fossil fuels, are in total denial about what’s
happening.
• Nobody has a clue about what to do instead.
• There are a heap of snake oil salesmen selling the marketing
equivalent of wind-farms and hybrid cars.
#ATSYD 7

8. Today
• Setting the platform on fire.
• Why does some advertising work, but much
of it doesn’t?
• How do we need to think to deal with the new
environment?
#ATSYD 8

9. Jon Bradshaw
Marketing Novice
#ATSYD 9

10. The role of marketing has not changed
• Change consumers behaviour
• To make the organisation more successful
• For the long term
#ATSYD 10

11. There are only four tasks
• Acquire new consumers.
• Get current consumers to buy more (frequency or
weight).
• Keep those consumers loyal.
• Increase the value of the brand so that we can
charge more.
#ATSYD 11

12. The overarching process also hasn’t changed
Motivation
Insight
positioning Truth Difference
Brand Competition
Positioning
identity
Identity
Engagement Connection
execution Idea Channel
Comprehension
Execution
#ATSYD 12

13. Our role and process hasn’t shifted, but our audience has
begun to disappear
#ATSYD 13

14. We are screwed…
#ATSYD 14

15. The media landscape is changing fast
#ATSYD 15

16. It’s easy to still believe in TV
 52% say most memorable medium (Deloitte
2010)
 87% reach of all Australians
 Are we still warming ourselves when our
house is on fire?
#ATSYD 16

17. The TV landscape in Australia is fragmenting beyond all
recognition
% Australians reached by media type
Broadcast
Time Shift
All Online
Streaming
Pirate
Online catch Up
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
• Traditional broadcast still has the best reach at 87% of all Australians.
• But one third of those are watching time shifted TV.
• 86% of time shifters skip ads.
• Online viewing already has surprisingly good reach at 43%.
#ATSYD 17

18. ‘New’ media not only has reach, it has depth
Media hours viewed per week
Broadcast
Time Shift
All Online
Streaming
Pirate
Online catch Up
0 2 4 6 8 10 12 14 16 18
• Looking at actual consumption of media, online viewers
consume as heavily as traditional viewers.
• And are currently sourcing up to 6 hours a week of content from
pirate channels.
#ATSYD 18

19. International data suggests time shifted will become
the norm in broadcast media
• Foxtel iQ penetration is around 35%
• DVR / TiVo penetration in the US reached 63% of households with income over
$100k.
• 86% of viewers said they fast forwarded through the ads.
DVR Penetration in the USA
60
50
40
30
20
10
0
2007 2008 2009 2010 2011 2012 2013
#ATSYD 19

20. Interruption is dead,
(well at least very poorly)
The audience is
online, on
demand and in
control.
#ATSYD 20

21. The Problem with
Target Tooheys Hahn and XXXX beers drunk in any one
year = 1.5 billion
Current total number of Facebook fans = 177,000
DNPFBFPD Index = 23.2
#ATSYD 21

22. The Problem with
Aussie Gov’t healthy drinking guidelines = 2 standard drinks / day
FBFRTHT@2SDPD = 2.1 million
A 1,200% increase
#ATSYD 22

23. The Problem with
 3 x the number of fans of Coke in Australia
 4 x the fans of McDonalds
 13 x the number of fans of Julia Gillard or the
Wallabies
 25% of all active Facebook users in Australia
#ATSYD 23

24. The Problem with
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25. Digital is not (yet) the messiah
“He’s not the messiah, he’s a very naughty boy”
#ATSYD 25

26. We have to change the question
 From just
 “what shall we say and do?”
 “where shall we say it?”
 To
 “why will anyone want to listen and engage?
#ATSYD 26

27. We need to begin to think about ‘advertising’ in four
connected but different ways
 Story Telling story-telling
 Relationship Management relationship But the audience has different
management
reasons to engage in each of
these four ‘nodes’
 System Building system
building
 E-Commerce E-commerce
Managing engagement is the secret to making it all work
#ATSYD 27

28. We used to rely on being entertaining to get people to
care about our marketing
brand story-telling entertainment
source approach reason to engage
• A brand creates stories that entertain.
• The best ads work when we craft an entertaining, unexpected story
about the brand that people can relate to.
#ATSYD 28

29. When you can interrupt the formula hasn’t changed much
Engaging, emotive story telling that simply and
powerfully dramatizes a believable, motivating
brand truth.
#ATSYD 29

30. Is this the last great ad I’ll ever make?
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31. Digital creates opportunities and challenges.
brand story-telling entertainment
source approach reason to engage
• Story telling in the digital channels, especially in owned media means we can
make it participatory and always on
• But always on creates a hungry content mouth to feed
• Participation, whilst more effective is complex and hard to get right.
#ATSYD 31

32. XXXX Island – always on is hard
(and can be expensive!)
#ATSYD 32

33. Relationship marketing relies on reward
relationship
brand reward
management
source approach reason to engage
• Service brands have developed this discipline to a sophisticated level.
• But historically product brands have at best dabbled round the edges of
managing loyalty
#ATSYD 33

34. In relationship management, digital has again driven
significant change
relationship
brand reward
management
source approach reason to engage
• Digital has transformed this node from generic mass DM
• To highly tailored data driven conversations with customers
• But the increasing need for data has continued to intimidate brands who do
not own the transactional relationship with the end user
#ATSYD 34

35. Service brands have been really building this capability
#ATSYD 35

36. Some product brands are now getting into loyalty and reward
#ATSYD 36

37. In the latter half of the noughties we saw a new
advertising approach emerge – system building
system
brand utility
building
source approach reason to engage
• In the mad rush of excitement about a new medium the question of why
would anyone care has often been lost.
• The best examples of software as advertising deliver real usefulness to the
consumer, giving them a reason to engage.
• Without that you’re just another useless app in the trash folder.
#ATSYD 37

38. Investorville is useful!
#ATSYD 38

39. What about gamification?
#ATSYD 39

40. There is a growing aspect for many brands –
e-commerce
brand E-commerce transaction
source approach reason to engage
• Currently dominated by retail and service brands.
• But as the Coles and Woolworths duopoly gets tougher
• We may see many other players in this space.
#ATSYD 40

41. FMCG is moving into e-commerce
#ATSYD 41

42. As such marketing has evolved into four approaches or nodes. Each
of the different ‘nodes’ works in a different way
Advertising approach Consumer Behaves
Reason to engage is Media is Digital facilitates Consumer result is
(node) as
Story
Audience Entertainment Pushed Participation Consideration
telling
Relationship management Recipient Reward Pushed and Pulled Personalisation Retention
System
User Utility Pulled Socialisation Involvement
building
E-Commerce Buyer Transaction Pushed Ease Consumption
#ATSYD 42

43. Introducing…
©™
The Hyper-connected Advertising Ecosystem ®
(I told you I wasn’t good at titles)
#ATSYD 43

44. Brand and Data connect all four nodes into an ecosystem
Utility
Real (social) usefulness
System
Building
Personalised reward for loyalty
Data fuelled insights
Entertain Story Relationship
ment telling brand Management
Reward
Always on, interactive story telling Data fuelled insights
E-
commerce
Simple easy intuitive shopping
Transaction
#ATSYD 44

45. What does it all mean?
We need to develop Hyper-connected Advertising Ecosystems
 BRAND. We have to get super tight on positioning and
identity in order to have the freedom to be in all four nodes.
 DATA. We have to scrape data at every interaction and
make it useful and useable.
 CONNECTION. Connecting the nodes is where the
power is. Each approach builds the strength of the other. You
have to build an ecosystem.
#ATSYD 45

46. “A slow sort of country”
Change is inevitable. Truly successful brands have to move faster
than the speed of change to stay in front.
"Well, in our country," said Alice, still panting a little, "you'd generally get to
somewhere else — if you run very fast for a long time, as we've been
doing.”
"A slow sort of country!" said the Queen. "Now, here, you see, it takes all
the running you can do, to keep in the same place. If you want to get
somewhere else, you must run at least twice as fast as that!”
Lewis Carroll, Through the Looking Glass.
#ATSYD 46

47. Hyper connected advertising in practice
#ATSYD 47

48. thank you
jon.bradshaw@brandtraction.com.au
#ATSYD 48