what web 2.0 means for ad agencies

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Advertising Federation“What Web 2.0 Means for Ad Agencies”

April 15, 2007

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What we will talk about…

Thinking Web 2.0 - Exploring the Social Impacts≥ What is it?

≥ The Expert View≥ A Guided Tour

≥ How does it behave?≥ How are we changing behaviour in response?≥ Beyond the Web≥ The Big Picture

Being Web 2.0 -Tips for How Agencies May Operationalize≥ Asking questions of ourselves≥ Evolving our roles≥ How some have evolved in response≥ Taking the first steps≥ Looking ahead

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Time spent online vs. television

Gen Y(18 – 26)

Gen X(27 – 40)

Young Boomers(41 – 50)

Older Boomers(51 – 61)

Seniors(62+)

Hours watching TV/wk

11 11 12 11 14

Hours spent online/wk

16 13 12 6 5

Forrester’s Consumer Behavior Online: A Deep Dive

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Compound annual growth in advertising spending

Years Television

Consumer magazines

Consumer internet

Videogame advertising

1999 - 2004 4.7% 1.2% 15.8% 109.1%

2004 - 2009 6.9% 6.2% 24% 46.1%Veronis Suhler Stevenson Communications Industry Forecast

ParticipationMonologue

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Broadband impacting TV commercials

≥ From 2004 – 2006, broadband adoption in the U.S. increased from 19% to 40%

≥ 42% of users who have broadband access stop watching television during commercials and go online

≥ 85% projected broadband penetration in 2008

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What is Web 2.0?

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“An attitude, not a technology”

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But what does it represent?

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How we see it

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Web 2.0 in Action

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Folksonomy

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Social Network

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User Generated Content

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Convergence

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Social Networks…again

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Data transformations (i.e “Mashups”)

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2.0…Beyond the Web

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Hacking

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What’s the “2.0”?

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Customers

Audience

Users

People

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Learn

Feel

Connect

Trade

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TEC

HN

OLO

GY

HU

MA

N B

EH

AV

IOR

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REPURPOSEREPURPOSE

DEMOCRACY

So what is advertising in a Web 2.0 context?

CHEAP

NETWORKING

SHARE

OPT-IN

FAST

COLLABORATION

CONVERSATION

CO-CREATION

FUNCTIONAL

ON-DEMAND

PARTICIPATION

PEOPLE-CENTRIC

PERSONALIZATION

DECENTRALIZED

2-WAY

IDENTITY

NETWORKING

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Technology is evolving a new participatory role in our lives

Humanizing Technology

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Technology and social change have always predicted the next evolution of advertising…

Cars and highways birthed the need for billboardsRadio and Television demanded sponsorship and commercialsInternet spawned spam and pop-upsWhat next?

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How will we choose to respond to these technological and social changes?

Ask ourselves, do you see a place for “advertising” within any of the humanizing spaces of the Web 2.0 frontier?

Humanizing Advertising

?

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We don’t claim all the answers - but for certain, advertising has no sustainable role as predator and deceiver

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Many people have a very clear vision of Advertising’s role in their lives

Predator

and Deceiver

perhaps Entertainer(at our very best)

Are we satisfied with our typecasting?

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And many clients have a very clear vision of Advertising’s role in their business

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And what of our precious advertisements?

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The craft of advertising is becoming marginalized to the periphery of our experiences

(And this will only continue to accelerate)

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Spam.

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So, as recovering habitual interrupters, how may we upgrade our software in a Web 2.0 context?

Make our “advertising” the opposite of spam

≥ Invited≥ Appropriate≥ Special≥ Portable≥ Cross-platform≥ Useful≥ Timely≥ Personal≥ Entertaining≥ Open≥ Economical≥ Scalable≥ Adaptable

≥ Effective

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In other words, Advertising 2.0 has to add real value to people’s lives

Web 2.0 demands two types of value≥Entertainment value

≥Advertising has always managed to deliver well

≥Utility value≥Not so much…

Most “advertising” as we know it has little to no utility value

≥While it may have once been highly valued by clients

≥ It offers little value to people≥And its value to clients is now in question and

being tested

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The engagement formerly known as “ads” are fundamentally peripheral to the Web 2.0 experience.

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…and what of “utility”? Ironically, no ads appear on word search for “utility”. Ironic? Or Telling.

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And beyond the internet experience…what value do ads add within human experiences?

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New York Red Bulls reverse the periphery model and put the brand at the very core of the experience.

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And Red Bull is not content to merely attach themselves to a sport. They’ve tailored whole new sports around their brand promise.

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Evian Spa is putting purified water at the center of a value-added experience.

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Charmin is offering pure utility and a joyful delight—comfy, clean, safe bathrooms throughout icky Manhattan.

Source: Advertising Age, 12/05/06 105C

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“…the role of marketers becomes more of intermediaries to the community of users …treating [them] as co-producers of value.”

-Yochai Benkler Yale Law School specialist in Open Source

Management

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There are many Web 2.0-inspired roles that advertisers may begin to fill in Web 2.0 spaces and within people’s lives

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There are many roles that advertisers may begin to fill in Web 2.0 spaces - and within people’s lives

How may our roles fuel the core pillars?LearnFeel

ConnectTrade

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Let’s play the role of Collaborators and invite co-creation with our brands

Doritos online gallery of user-created submissions received 600M views during Super Bowl week.

The SuperBowl airing, itself, promises 93M viewers.

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Let’s be Journalists and spark a global conversation

“A viral video from Dove drove

more traffic (500M

impressions) to the campaign’s target site than the ad they ran

on 2006’s SuperBowl”.

Blogger chat fueled the spot

to the top 15 most-linked-to

videos of 2006.

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Let’s be Listeners and leverage the long nose of transparency to fuel engagement

Round 1: garnered 2M user sessions, 30M site hits, over 7M views, 4M YouTube views - one of the most successful ads in the history of YouTube”.

Round 2: harnessed user anticipation and created passionate engagement with the whole process of creating of the “ad”

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Let’s play the role of Provocateur and incite wholey participatory experiences

CourtTV’s “Parco, P.I.” stunt campaign in NYC & LA

“One million hits to blog in one week, and most-viewed YouTube video of that week.”

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Play the Economist and move fast(er) and cheap(er)

20 holiday-themed sites…one struck jackpot.

40M+visits, over half a billion hits, 2M Google hits, over 100 user-created videos on YouTube, total time spent on the sites - 642 years.

Ideation to Production to market - 5 weeks.

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Be a Life-coach and counsel the actual actions of our brand promises, not simply the words

Built good-will before unveiling product, by establishing a fun, human, robin hood personality for the brand.

2 million hits on Ted teaser site, 175 million PR impressions , almost $5M in flights booked online before Ted even began flying.

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Evolve our role as Brand Stewards. Let’s get out from behind the screens and be transparent.

Virgin America appealed directly to people to marketplace point of difference and sign their petition to get DOT approval to fly in America. And they got it.

JetBlue confesses to operational failures and issues both a very public apology and manifesto for change. Not ads.

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Evolve from ‘Spin’ and leverage the new accessibility of empirical behavioral data

Demands for accountable effectiveness are being met by Web 2.0 applications.

This expectation is driving measurability of TV commercials (Nielsen Ad Rating, Google Pay-Per-Action)

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Play the role of Assistant and provide pure functional utilityNike now believes digital thinking should be at the heart of ad strategy…so much so that they’ve signaled a warning to their agency partner of 25 years

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Get from behind our screens and actually (gulp) meet with our customers (and critics)?

To curb hactivist prejudices, Dell has made blogger outreach into a discipline.

The company's team recently sat down for drinks, nachos, and fried zucchini at a pub with blogger (and outspoken Dell critic) Jeff Jarvis. (Jarvis picked up his own tab.)

“In a flash he transformed the borgish image of Dell for me,” says Jarvis.

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What we said…

Thinking Web 2.0 - Exploring the Social Impacts≥ Technology and behaviour are intrinsically linked≥ Both are evolving≥ Web 2.0 everywhere≥ These concepts are no longer peripheral, now pervasive

Being Web 2.0 - How Agencies May Operationalize≥ Change is real, heed the signals≥ Shifts in technology and behaviour have always led change

from Advertisers, we have weathered previous shifts≥ Opportunity to expand our roles and abilities ≥ Niche plays are crucial to a decentralized environment≥ Media neutral, idea-centric, solution-centric, people-centric≥ Integrated marketing is a tactical necessity≥ Relentless improvement, perpetual beta≥ Advertising will live or die on the value it provides -

entertainment value not enough≥ Some agencies are already staking claims

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Now what do we do?

Quit speaking about new media as if were an out-of-body experience - get experienced

≥Dive in≥Swim deep≥And everybody needs to get wet

what web 2.0 means for ad agencies

Business