Media'ZBiz!

What will the future of advertising look like?

The answer could be the one painted in this viral ad promoting the upcoming FITC digital and technology festival in Toronto. The ad is set in the future and shows a narrator in a deserted office (preserved as a museum) describing the remains of the last advertising agency on earth. An ad agency which ignored the power of digital and social media.

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Traditional advertising no longer works. The gap (and break up) between the consumer and the advertiser is growing on a daily basis as shown in this great video.

Eric Clemons a year ago has written in TechCrunch Why the Advertising is Failing Over the Internet. Here is an extract of what he wrote:

There are three problems with advertising in any form, whether broadcast or online:

• Consumers do not trust advertising. Dan Ariely has demonstrated that messages attributed to a commercial source have much lower credibility and much lower impact on the perception of product quality than the same message attributed to a rating service. Forrester Research has completed studies that show that advertising and company sponsored blogs are the least-trusted source of information on products and services, while recommendations from friends and online reviews from customers are the highest.

• Consumers do not want to view advertising. Think of watching network TV news and remember that the commercials on all the major networks are as closely synchronized as possible.  Why?  If network executives believed we all wanted to see the ads they would be staggered, so that users could channel surf to view the ads; ads are synchronized so that users cannot channel surf to avoid the ads.

• And mostly consumers do not need advertising. My own research suggests that consumers behave as if they get much of their information about product offerings from the internet, through independent professional rating sites like dpreview.com or community content rating services like Ratebeer.com or TripAdvisor.

It is time for media owners to innovate – ditch advertising and become a platform.

Your thoughts and comments are welcome.

Co-creation is a powerful trend in product development that has been around for quite some time. But as I have written in an earlier blog post (Brand 2.0: when crowdsourcing becomes a must…) co-creation has recently started to gain more traction with social media bringing communities together.

Most companies have innovation as one of their top priorities. But many face challenges in innovation management – be it ability to co-create with customers, or utilizing employee talent. To address this challenge, enterprises have to embrace open innovation, co-creation and collaborative innovation.

John Windsor’s recent blog post about his friend who runs a business in the outdoor sports market is very relevant:

He described the paradigm shift we’re experiencing really well.

My friend says that he’s at a crossroads. He currently has his agency produce TV spots to run on targeted cable channels. All in, he’s spending a few hundred grand to reach a similar number of viewers.

It’s all good.

Until he starts looking at what his fans are doing on YouTube. People, who love his brand, are making their own spots by the hundreds. And, they’re popular. A half dozen of the videos have been viewed by over 1.5 million people.

At the end of the day, it comes down to math. It’s either creating TV spots and buying the media for them for a lot of money or getting 9,000,000 viewers at the cost of $0. The decision seems easier than it really is. While the cost of the 9,000,000 viewers is 0, my friend has lost some of the control he had over his brand when he used his agency. The trick is moving from a creation mindset of controlling the message and broadcasting it to a curation mindset of inspiring and guiding the people who are creating and sharing the digital videos.

While most companies understand the power of collaborative innovation, the means to achieve it is not always available. They need an alternative to current ad agencies and crowdsourcing platforms. At  90:10, we have been working on a whole series of products that offer companies the strategic direction, engagement, connectivity, relationship management and ROI.

The following slidedeck gives you more details about our approach.

If you’re interested in the products themselves and how they can create value for your company – let me know.

cc

Related articles:

A definition of co-creation

What the heck is co-creation?