Marketing isn’t what it used to be. In 2003, advertising spending across the world increased on average by 3.6% – however the returns from that spend decreased by 3.4%. Disruption is upon us.
Not a surprising fact considering that the average consumer who’s reached the ripe old age of 65 in Britain would have been exposed to at least one million television commercials. And the number in the U.S. and Australia is even higher. When you stop and do the sums, this equates to watching television commercials for eight hours every day, seven days a week for a mind-boggling three years!
Given the low return on advertising investment, we are forced to conclude that advertising, as we know it, no longer works. Something new is required. I’m suggesting three new pathways.
Sensory Branding
The world of advertising needs to go back to basics. Today 99% of all communication is based on what we see and what we hear. One may ask about what we smell, taste and feel – particularly in light of the fact that 75% of our emotions are connected to what we smell rather than what we see and hear. Marketing seems to have generally neglected this very important sense at its own peril considering that branding is all about building emotional relationships between a product and the consumer.
I call this concept of appealing to all the senses Sensory Branding – a topic you’ll hear much more about as I share the findings from the world’s largest study ever conducted on brands and our five senses as part of project BRAND sense. The results are nothing short of startling, and for the first time they offer proof that in order to survive, branding has to expand its two-dimension approach and become a five-dimensional concept.
Brand Communities
Think Tupperware, Atkins or Weight Watchers. They all have one thing in common. Brand communities support these three enormously successful brands. In a world where advertising is losing credibility, consumers are looking for other sources of trust – communities provide an answer. Friendship is one of the strongest bonds of trust. We trust our friends’ recommendations, advice and experience. Think about the last movie you saw, restaurant you ate at or book that you read. Chances are a friend recommended them, and you may very likely recommend them to another.
Brand communities have always existed, but as traditional marketing loses its strength, focusing on the brand community has proved to be an effective strategy. The future of those brands who take their market seriously and question the influence of traditional above-the-line advertising, will be considering establishing a brand community where word-of-mouth will do the talking. These personal testimonials will guarantee the results, and media money will be spent on people rather than on creating ads and commercials. It will require more than a website to achieve this, and a consistent well thought-through approach will be essential for success.
Situation Placement
Close to 60% of the tween population in the UK play a computer game every day according to the BRANDchild study. The numbers are astounding. The Hollywood movie-making machine is only half as big as the computer gaming industry. But in a mere three years time, it’s predicted to be a third. The future power of the computer gaming industry is set to become an extremely important channel for advertisers.
No wonder companies like Toyota, LEGO and McDonald’s have begun integrating commercial messages into games. It also comes as no surprise that energy drinks like Red Bull have succeeded after placing their first commercial message – “Need More Energy” in Play Station 1. This is not an easy game. Where do you go? Who do you ask for advice? There’s not much of an infrastructure that can help you. No media agencies to book space. No advertising agencies to secure placement. And things are changing quickly. If you are smart – you can be first. The prices of securing space in the virtual world are quite low. The value is high. Brands in a virtual world are still as rare as seats on a space flight.
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5 comments
Jonathan Salem Baskin
August 17, 2007 at 9:16 am
Martin, I think you’re absolutely right about the demise of traditional branding and its various marketing applications. Context — time, place, application — are all far more important to realizing consumer behavior than any invented conceit from the creatives. I am struck recently by the empty promises of Microsoft Vista ‘recommendations’ in the PC mfg channel advertising. It simply doesn’t make any sense, and I posit it can actually do damage to the brands presuming that such statements (which are meaningless) can be made without having a negative impact on what else those businesses choose to say. I’ve just written a bit about it on DIM BULB, at http://dimbulb.typepad.com/my_weblog/2007/08/integrity-schme.html if you’d like to check it out. Cheers!
Mike Mirkil
August 17, 2007 at 1:04 pm
Agreed on community and the power of relationships. If you look at how consumers are using/treating brands today, they are actively seeking affiliation and community. They are really allowing brands to create their own culture, of which they are willing participants.
Ted Grigg
August 17, 2007 at 1:11 pm
Your statements ring true.
I noticed that in previous posts that you allude to the Apple brand.
Their products so clearly appeal to many of our senses. The feel of the new iPhone that exudes finesses and quality. The sounds of the iPod. The enduring visual appeal of the aluminum PowerBook and all of their products. The only thing lacking may be the senses of taste and smell.
But what really puts the icing on the cake and makes the Apple brand is emotional appeal. Apple evokes independence and going against the grain that attracts many people.
Through this emotional appeal, Apple not only has admirers but rabid advocates. I know of no other brand today that rivals Apple’s brand power.
I believe that marketers who know how to leverage emotion with their products will form lasting customer relationships.
Jonathan Salem Baskin
August 17, 2007 at 9:43 pm
I agree with you 100%, as emotion is communications shorthand for ‘meaning’ and ‘truth.’ As such, you can’t invent it…it must be, and be real. Apple beats the pants off other computer makers because they understand this.
Akash Sharma
December 5, 2009 at 3:00 pm
Quite rightly said Martin, its very important to understand the future as traditional methods are just not workable as people just don’t have time to look at ads because he can get a lot of options on a simple click.
Getting into the community and making it a better place is again a good point but I think the “situational placement” was the best point, but I also wonder that has happened in the past as well for example Bond movies had some featured brands.
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