Advertising 2020: Insights from the Wharton. Future of Advertising Program. Prof. Yoram (Jerry) Wind
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1 Prof. Yoram (Jerry) Wind The Lauder Professor Emeritus and Professor of Marketing Advertising 2020: Insights from the Wharton Future of Advertising Program Director, SEI Center for Advanced Studies in Management Academic Director, Wharton Future of Advertising Program The Council for Research Excellence Future Webinars October 26, 1
2 Objective Explore the implications of the changing advertising scene as reflected in the findings of Wharton s Future of Advertising Program. 2
3 Our Agenda 1. Describe the Wharton Future of Advertising program 2. Briefly outline the Beyond Advertising Roadmap 3. Discuss key insights and explore their implications for the audience 4. Conclude with a call for experimenting with some of our insights 3
4 Wharton Future of Advertising Program 4
5 Wharton Future of Advertising Program 5
6 Wharton FoA Innovation Network Multi-Disciplinary Multi-Generational Cross-Sector Agencies Brands Academics Creatives Analytics Researchers Tech Designers Neuroscientists Social Mobile Local Traditional Media Emerging Media Behavioral Economics Cultural Anthropology B2B B2C P2P 6
7 Wharton FoA Advertising 2020 Idealized Design: The Best We Can Imagine 200+ Thought Leaders 22 Countries; All Regions 1. What could/should advertising look like in 2020? 2. What should we do now for that future? 7
8 Wharton FoA Advertising 2020 wfoa.wharton.upenn.edu 8
9 The Network Orchestration Model Wharton Future of Advertising Program s Beyond Advertising ALIGN OBJECTIVES Brand Steward Network COMPELLING BRAND PURPOSE 3 ALL TOUCHPOINT ORCHESTRATION EXPERIMENTATION People Culture, Society, & the World -Analytic brilliance -Creative brilliance -Design brilliance -Operational brilliance 1 2 CHALLENGE YOUR MENTAL MODELS 4 5 CONTENT RAVES CONTEXT MADE s 9
10 Un-Ignorable Forces of Change + Speed + Breadth + Complexity + Relevance Unabated Challenges to the status quo + C-Suite Worthy 10
11 1. Science & Tech 2. Media Unprecedented Upside Potential 3. Consumers 4. World Issues for the future 5. Business Models 11
12 Exponential Advances in Science & Tech Neuroscience & Bioscience Emotions rule Mobile Real time customization and personalization IOT & AI & Cognitive Computing & VR/AR Understand and Serve Connectivity & Cloud Richer, Faster, Cheaper 12
13 Exponential Advances in Science & Tech Deeper Real Time Understanding OUTSIZED RESPONSIBILITY FOR WHAT WE DO WITH THAT KNOWLEDGE 13
14 Empowered & Skeptical Consumers Choice Give me tools to make better decisions Customerization and Personalization: Make it mine Communities Let me be a part of it Competitive Value Give me more for my money Channels I want to call, click and visit Source: Wind and Mahajan, Convergence Marketing, Financial Times/Prentice Hall,
15 Empowered & Skeptical People Individuals with lives, aspirations, challenges, family, communities Exponential Advances in Science & Technology BE WORTHY OF RESPECT AND EARN TRUST 15
16 Un-Ignorable Media Disruption Forces of Change & Redefinition One-way Static Two-way understanding appreciation Dynamic ability to deliver Stationary Passive Mobile Meaningfully Sensing Media Disruption & Redefinition One-Dimension Visual Immersive Multisensory 16
17 Media Disruption & Redefinition Unprecedented Platform Design Capabilities Exponential Advances in Science & Technology EXCEPTIONAL CONTEXUALIZED EXPERIENCES 17
18 Culture, Society & Our World Health Divide Income Divide Digital Divide Education Divide Equality & Tolerance Climate & Sustainability 18
19 Inspiring, Measurable Business Models 1. The customer driven/ holistic model 2. The cocreation model 3. The open innovation model 4. Network orchestration model 5. The competitive value model 4. Revenue models 7. Transformation to full service provider 8. The emerging market innovation engine 9. B- Corporations 10. The shift to digital and network business models
20 Implications? 20
21 Insight #1: Our Insights Traditional mindsets, including those about advertising and marketing, must be challenged and potentially changed. 21
22 Implications? 22
23 Mental Models: The Primary Impediment to Transformation It has always worked this way. We tried it and it didn t work. We re profitable; why change? 23
24 What Are Mental Models and Why Do They Matter? Roger Bannister breaks the 4 Minute Mile on May 6, 1954 What is your 4 minute mile? 24
25 What is the best it could / should be? Marketers and Agencies, through Media, at Target Demographics WHO? Cross-Silo Collaborators Ads WHAT? Orchestrated Value-Creation Touchpoints Challenge Our Mental Models of Advertising CURRENT Frequency Reach WHEN? WHERE? When Needed, Wanted, Appreciated Where Needed, Wanted, Appreciated TOWARD Push and Persuade For Sales WHY? Multi-Win Outcomes Ad Campaign HOW? Initiatives in Holistic, Dynamic Ecosystem 25
26 Start using a new vocabulary. 26
27 Even challenge the objective of the firm Challenge everything. Leave no sacred cows. FROM Maximize long term shareholder value TO Align the objectives of the brand, the people (consumers ) and society 27
28 Questions and implications re Insight #1 Marketers and Agencies, through Media, at Target Demographics WHO? Cross-Silo Collaborators Ads WHAT? Orchestrated Value-Creation Touchpoints CURRENT Frequency Reach WHEN? WHERE? When Needed, Wanted, Appreciated Where Needed, Wanted, Appreciated TOWARD Push and Persuade For Sales WHY? Multi-Win Outcomes Ad Campaign HOW? Initiatives in Holistic, Dynamic Ecosystem 28
29 Insight #2: Shift your focus from media mix to portfolios of all touchpoint orchestration. 29
30 All Touchpoint Orchestration Website Product & Design Apps Package Design Customer Service Store Design Website & Apps Co- Do Good 30
31 Questions and implications re Insight #2 31
32 Deliver your compelling brand purpose with the right content and context Insight #3: Leverage the power of content by following the R.A.V.E.S. s criteria and the power of context by following the M.A.D.E. s criteria 32
33 The Power of Content: R.A.V.E.S. Relevant and Respectful Know, understand Protect & be trustworthy Allow for serendipity 33
34 The Power of Content: R.A.V.E.S. Actionable (frictionless) Opt in Learn more & compare Share Try on/out Own (beyond buy ) 34
35 The Power of Content: R.A.V.E.S. Valuable & Value Generating Emotional Social Cognitive Mutually Beneficial 35
36 The Power of Content: R.A.V.E.S. Exceptional Experience Design Thinking As good as your last, best experience Or better 36
37 The Power of Content: R.A.V.E.S. Shareworthy Story Story telling Story doing Story co-creation The Fame Effect 37
38 The Power of Content: R.A.V.E.S. 38
39 The Power of Context: M.A.D.E. s Multisensory Aesthetic and Design Eyes - sight Ears - sound Nose - smell Mouth - taste Body touch Heart - spirit 39
40 The Power of Context: M.A.D.E. s Audience frame of mind 40
41 The Power of Context: M.A.D.E. s Delivery Mechanism, Interface, & Platform/Medium Unique characteristics Distinctive personality Emotional bond with audience Trusted Curator & Collaborator 41
42 The Power of Context: M.A.D.E. s Environment and Location Weather Geography Crowd Happenings/News What I need/want right now because of where I am and what is happening 42
43 The Power of Context: M.A.D.E. s Citibank- Citi Bike Dick s Sporting Goods 43
44 The Power of Context: M.A.D.E. s s ynergy with Other Touchpoints Exponential Effect of Portfolios vs. last point attribution/debate Really interesting collaborations 44
45 Questions and Implications Re Insight #3 Maximized Substance R.A.V.E.S. + Maximized Context M.A.D.E. S. Keep the R.A.V.E.S. and M.A.D.E. S Guidelines Handy R elevant & Respectful A ctionable V aluable & Value Generating E xceptional Experience S hareworthy Story M ultisensory A udience D elivery Mechanism E nvironment S ynergy 45
46 Insight #4: Bridge the Deadly Silos 1) Objective Silos Sales and Profit vs. Positive Social and Cultural Impact 2) Solution Silos We need a mobile app vs. What problem can we solve? 3) Organizational Silos Us vs. Them 4) Generational Silos Extensive Experience vs. Fresh Perspectives 5) Operational Silos Product Management vs. Sales vs. Customer Services vs. PR vs. Marketing and Advertising 6) Expertise Silos The Creatives vs. the Analysts vs. the Strategists vs. 7) Responsibility and Accountability Silos Product/Service Sales Objectives vs. Responsibility and Accountability for Intended and Unintended Impact 8) Intelligence Silos People vs. Silos 9) National Silos Global Efficiency vs. Local Sensitivity 10) Cultural Silos What Makes Us Distinct vs. What Brings Us Together 11) Media/Channel/Touchpoint Silos Attribution Winners and Losers vs. Portfolio and Synergy Effect 12) Hidden Silos The Boundaries we don t yet see 46
47 The Dozen Silos 1. Objective 2. Solution 3. Organizational 4. Generational 5. Operational 6. Expertise 7. Responsibility & Accountability 8. Intelligence 9. National 10. Cultural 11. Media/Channel/Touchpoint 12. Hidden A. Bridge the Expertise Silos DATA science vs. methodologists Secondary DATA vs. experimentation The Creatives vs. Analysts vs. Strategists 47
48 The Dozen Silos 1. Objective 2. Solution 3. Organizational 4. Generational 5. Operational 6. Expertise 7. Responsibility & Accountability 8. Intelligence 9. National 10. Cultural 11. Media/Channel/Touchpoint 12. Hidden B. Bridge the Generational Silos Millennials vs. others Extensive experience vs. fresh perspectives 48
49 The Dozen Silos 1. Objective 2. Solution 3. Organizational 4. Generational 5. Operational 6. Expertise 7. Responsibility & Accountability 8. Intelligence 9. National 10. Cultural 11. Media/Channel/Touchpoint 12. Hidden C. Bridge the Intelligence Silos People vs. computers People and computer (cognitive computing) vs. robotics and AI 49
50 The Dozen Silos 1. Objective 2. Solution 3. Organizational 4. Generational 5. Operational 6. Expertise 7. Responsibility & Accountability 8. Intelligence 9. National 10. Cultural 11. Media/Channel/Touchpoint 12. Hidden Questions and implications Re Insight #4 1) Objective Silos Sales and Profit vs. Positive Social and Cultural Impact 2) Solution Silos We need a mobile app vs. What problem can we solve? 3) Organizational Silos Us vs. Them 4) Generational Silos Extensive Experience vs. Fresh Perspectives 5) Operational Silos Product Management vs. Sales vs. Customer Services vs. PR vs. Marketing and Advertising 6) Expertise Silos The Creatives vs. the Analysts vs. the Strategists vs. 7) Responsibility and Accountability Silos Product/Service Sales Objectives vs. Responsibility and Accountability for Intended and Unintended Impact 8) Intelligence Silos People vs. Silos 9) National Silos Global Efficiency vs. Local Sensitivity 10) Cultural Silos What Makes Us Distinct vs. What Brings Us Together 11) Media/Channel/Touchpoint Silos Attribution Winners and Losers vs. Portfolio and Synergy Effect 12) Hidden Silos The Boundaries we don t yet see 50
51 Response Insight #5 Response x $ Adopt adaptive experimentation as your X X business philosophy X ½x x 2x $ 51
52 Insight #5 Experiment Benefits of Experimentation: 1. Learning & Better Decisions 2. Forces Measurement 3. Enhances Innovation 4. Fosters an Innovative Culture 5. Attract and Retain Talent 6. Confuses the Competition 52
53 Insight #5 Questions and implications for Insight #5 Experiment 53
54 Reactions? Amplifications? Questions? Applications? Insight 1: Traditional mindsets, including Insight 3: Leverage the power of those about advertising and marketing, content by following the R.A.V.E.S. s must be challenged and potentially criteria and the power of context by changed. following the M.A.D.E. s criteria Insight 2: Shift your focus from media mix to portfolios of all touchpoint orchestration. Insight 4: Bridge the deadly silos Insight 5: Adopt adaptive experimentation as your business philosophy 54
55 Reactions? Amplifications? Questions? Action plans, including a key experiment Applications? 55
56 Think like the best UX designers, and as a disruptor. 56
57 57
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