The future of advertising - Real time information

Eric Friedman has an excellent post on how sees the future of advertising. I can't agree with him more. With the increasing number of devices that we have come to own as consumers, advertising is  increasingly changing to 'discovering' and 'informing' continously, one customer at a time. Take a look at what he has to say:

I believe that the future of advertising is in providing real time information instead of real time interruption. This is the future of advertising, or what we call marketing 2.0.

Real time information is how advertising will work (and is working) for the next generation. We have been brought up on the idea of instant gratification and having information available to use 24×7 at our fingertips. It is no surprise that advertising is now more precise and targeted to our needs - this is a direct correlation to how we consume information in general today.

The difference between the two is a generic 30 second television spot that appears between segments of your favorite prime time show and a search query performed at 3:00am when you are looking to find some information.

In a world where optimization is not only needed but expected, every display of my ad and subsequent click results in a search engine learning about the relevance of showing it to each user. Engines such as Google and Yahoo use this information to help the user experience and provide the most real time and relevant information possible.

As companies learn that their dollars can be better spent placing their ads in front of people with questions, and understanding that their ad can actually answer these questions, the true shift in advertising dollars will occur. I know we have written about the fall of the television upfront and changes to advertising many times (1, 2, 3, 4) but now the knowledge exists to make these changes possible.

World’s longest used direct mail letter

When you understand what your customer motivations are and appeal to them, even years later the communication piece can still remain a classic.

Martin Conroy's letter is one of them. He wrote a famous subscription letter for WSJ.  It was not an ad or a TVC but a two page letter! NY Times reported that he passed away on Tuesday. Here's a tribute from the article.

Mr. Conroy’s masterwork never appeared in newspapers or magazines. Nor was it broadcast on television or the radio. It was a letter — a simple, two-page letter. It begins:

“On a beautiful late spring afternoon, twenty-five years ago, two young men graduated from the same college. They were very much alike, these two young men. Both had been better than average students, both were personable and both — as young college graduates are — were filled with ambitious dreams for the future.”

Then, a small note of foreboding:

“Recently, these men returned to their college for their 25th reunion.”

Mr. Conroy’s letter is a subscription pitch for The Wall Street Journal. Written in plain language with the inexorable pull of a fairy tale, the letter is widely considered a classic of direct-mail marketing, sent to millions of people in the course of nearly three decades.

Alan Rosenspan, the president of Alan Rosenspan Associates, a direct-marketing concern in Newton, Mass., uses Mr. Conroy’s letter as a teaching tool in seminars.

“I ask people to read out loud the first paragraph of the letter,” Mr. Rosenspan said by telephone. “And what’s astonishing to me is that they never stop at the first paragraph. They keep on reading. And I tell them: ‘You have just proven why this letter’s so powerful. It’s a story.’ ”

May his soul rest in peace.

Paying for audience attention

Greg pointed me to an excellent video on "An Economic Response To Unsolicited Communication" by Marshall Van Alstyne about e-mail spam. While this is about email spam, I believe this has profund implications on:

  • How to build a next generation list marketing company
  • How the marketing in the future will move from paying to media (to get audience attention) to sharing the monies with media and audience(by paying for audience attention)!

Take a look:

Know what your customers talk about you

Consumer generated chatter is increasingly becoming an important source of purchasing decisions.

More than 50% of respondents to the Compete study said they used consumer-generated media to make or narrow their choices, 23% used CGM to confirm a decision and 15% used CGM to determine what their top choice should be.

Some key findings from the study:

* 71% of car and travel consumers are influenced by CGM

* Only 35% of the same consumers are influenced by brand

* Auto buyers prefer consumer reviews and ratings over company websites (32%) and car dealers (32%)

* 2/3 of travelers prefer consumer reviews.

Compete estimates that around $2 billion from the Travel Spend is influenced by CGM.

“CGM is money in the bank for marketers who know how to tap into the new currency around CGM,” said Cynthia Stephens, director of marketing at Compete, Inc (in a statement). “Marketers will need to go beyond buzz-tracking tools to analyze and connect with in-market consumers in a new landscape. Companies that follow this course have nothing to fear about losing control of the marketing message.”

You - Time’s Person of the year

You - Time's Person of the Year
Finally, User Generated Content and Customer-Driven marketing has got mainline. The Time Person of the year is  "YOU".

You, me, us...we're all Time's Person of the Year. Well, technically speaking not all of us (more on that in a bit). Time has selected, 'You' as Person of the Year because of the revolution in user-generated-content that is increasingly influencing society.

The December 25th issue features a number of articles surrounding the selection. There is of course the cover story, as well as:

Demographic search!

MSN has launched demographic search which looks quite interesting to me. In online advertising, the demographics of the user is always in question as there is a lot of 'junk' registered data. Even though this is based on an index file of MSN search users, it can serve as a useful predictor of the kind of sites one would want to advertise.

Here's the link