Presentation given at the Inspire 2009 conference in Bucharest. Originally intended to be titled ´What if there was no TV´, during the preparation we noticed several trends that led us to change the title to Ádvertising is Dead´. Every new technology has a shorter curve from introduction to irritation. It´s time for a new approach, which we call the Attraction Model. We are available to present at your conference or event too.

1. What if there were no more TV?
FUTURELAB

2. Outline speech Bucharest
Need kickass opener
Advertising is Dead
FUTURELAB

3. Actually….
FUTURELAB

4. We are Futurelab
FUTURELAB

5. WE ARE FUTURELAB
We create new profit opportunities for our customers.
Our innovations and methods allow:
• Marketers to become more effective & engaging.
• Innovators to identify the next opportunity or niche.
• CEO„s to connect their business to the customer.
In the process, we challenge every barrier to business
success. We dislike writing reports, billable hours or
elaborate processes.
Instead, we prefer to quot;get onquot; with making money for
your business.
FUTURELAB

6. Futurelab Structure
Priviliged
Relationships
Athens – Barcelona - Brussels – (Bucharest ) – Johannesburg –
Hamburg – Moscow – Kiev - Munich - Shanghai
A flexible boutique: 2 partners – 3 support staff – 9 associates – 28 specialists/contributors

7. Last Year

8. Last Year
76% of consumers don‟t believe that companies
tell the truth in advertisements
Yankelowich,2006

9. Last Year
“You can‟t bore people into
buying your product – you
can only interest them”

10. The Consumer is Tuning Out
• In 1965, 80% of 18-49 year-olds in the US could be reached with three
60-second TV spots. In 2002, it required 117 prime-time commercials
to do the same.” (Jim Stengel, Global Marketing Officer, P&G)
• A US hour of prime time TV carried 21 minutes of advertising, Late
Night network shows like Leno or Letterman carry 31:27 (TNS Media
Intelligence, Q1 2006)
• Big Six study (US): People with DVR‟s watch 12% more TV, yet 90%
of them adskip (Germany : 88.2%)
• 78.2% of Germans are irritated by advertising, only 24% actually still
watches it (GfK Marktforschung)
• 85% of Chinese stop watching TV during commercial breaks. More
than half change the channel, while the rest do housework, eat, chat
or use the bathroom. (McKinsey & Co.)
FUTURELAB

11. Last Year
“Today's marketing model is broken. We're applying antiquated thinking and
work systems to a new world of possibilities.quot;
Jim Stengel, Global Marketing Officer P&G

12. Last Year
Advertising Myths
1. Frequency is mostly not
a driver for action
2. There is no golden rule
about OTS

13. Last Year
• 54% of US consumers avoids
products & services which
“overwhelm” with advertising
(Yankelovich Partners)

14. Share of Voice?

15. Last Year
Advertising is a tax you
pay for unremarkable
thinking
Robert Stephens,
CEO, the Geek Squad

16. Total Transparency
• With total transparency, how can there be
advertising?
• Shotcodes in stores in Japan, telling you
where to go to get the product cheaper
• A fucked company example

17. Prices aren‟t what they used to be

18. Total Transparency

19. Lawyers

20. Lawyers

21. Doctors

22. Teachers

23. Most influential information sources in
purchasing electronic goods? (TOP 3)
Magazines
11,7% Source %
In-store Sales Associate 49
CMO Council‟s Retail Fluency Report, 2005
In-store demonstration 36
Word-of-mouth from family & 33
friends
Newspaper Coupons 25
Television
37,8% Internet 21
News-
papers Product/Company Information 16
25,9% Retailer information 14
Radio
Internet 8% Other 14
9,7%
Magazines 4
Share of total adspend by medium (global) % TV 4
2008 forecast (March 2008) Radio 3
What are we focusing on?
FUTURELAB

24. Now…
People who live near train lines find ways to adjust to
the noise ...
Consumers have begun to treat encroaching
advertising just like those trains.

25. Banner
blindness
1998!

26. “Online video ads are quickly
becoming the medium of choice to Online tactics in terms of ROI (2005-2007)
drive both brand awareness and 57%
sales.” SEO 45%
33%
(2007) 44%
Behavioral targeting 34%
36%
42%
Email marketing-house list 47%
47%
“With young adults now spending 34%
on average six hours a week Paid search ads 49%
52%
gaming, advertisers should be 21%
Contextual targeting 29%
excited at how well their 31%
messages were embraced and the 10%
Banner ads 12%
brands positively perceived” 14%
(2008) Rich media ads
7%
28%
38%
0%
Pop-ups/pop-unders 15%
22%
23%
67% of marketers report they will Text-link ads 0%
0%
increase their social media
advertising budget in 2009 0% 10% 20% 30% 40% 50% 60%
2007 2006 2005

27. Contextual advertising ...has just died

28. • Advertising is dead – long live marketing
Lets keep the patient alive a little longer

29. Procter & Gamble is placing radio-
frequency identification tags on
products at a Metro Extra retail
store in Germany so that when a
customer pulls the product off the
shelf, a digital screen at eye level
changes its message
At least be the first! 

30. % of marketers advised by agencies to advertise in games/virtual worlds 62%
% asked to start/increase viral marketing spend on social networks 87%
% told by agencies to begin/increase viral video spend 93%
Marketing Sherpa Ad:tech survey
Lemmings?

31. The Advertising Technique Hype Cycle
Isnt there a bit much?
Hey, actually this is cool
Hmm – what‟s this?
Naah, cant measure it Sooo 5 minutes ago

32. Is it all over?

33. It‟s only just begun

34. FUTURELAB
The Attraction Model

35. Attention Economy Reputation Economy

36. Relevance!

37. Relevance
Engagement Reputation
Reputation x Relevance x Engagement = $$$

38. Reputation
Relevance
Engagement
FUTURELAB
The Attraction Model

39. Reputation
Experience
Listening
Customers

40. perception
80% of CEO‟s believe their
brand provides a superior
customer experience
8 % of their customers agree
(Bain & Company)
FUTURELAB

41. Online Reputation Romania
FUTURELAB

42. The online reputation is just the tip of the iceberg
But it can crash your boat
Source: Forrester Technographics® - 2008
FUTURELAB

43. So Listen!
Because if you don‟t listen...

44. “With regards to the recent Motrin advertisement, we have
heard you.
On behalf of McNeil Consumer Healthcare and all of us who
work on the Motrin Brand, please accept our sincere apology.
We have heard your concerns about the ad that was featured
on our website. We are parents ourselves and we take
feedback from moms very seriously.
We are in the process of removing this ad from all media. It
will, unfortunately, take a bit of time to remove it from our
magazine advertising, as it is on newsstands and in
distribution.
Thank you for your feedback. It‟s very important to us.”
Results 1 - 10 of about 11,600 from
twitter.com for motrin.
“hell hath no fury like a
mommyblogger
scorned”

45. Reputation
Relevance
Engagement
FUTURELAB
The Attraction Model

46. Relevance
Insight
Communication
Commerce

47. INSIGHT
Understand what
truly drives your
customers
FUTURELAB

48. • Podcast and map downloaded
Commercial – yet relevant

49. FREE TIX TO GREAT ADVENTURE
Heard a rumor you can get 2 free tix to
opening day weekend at Great Adventure
amusement park
45000 tickets gone in 5 hours

50. Relevance of Commerce

51. Downsizing

52. Reputation
Relevance
Engagement
FUTURELAB
The Attraction Model

53. Engagment
Engagement
Move the funnel
• Funnel Content
• Content Recommendation
• Recommendation

54. Funnel
IGNORANCE NEED TRIAL REPURCHASE UPGRADE BRAND EXIT
(c) 2007-2008, Futurelab – Used with Permission
AWARENESS CONSIDERATION PURCHASE LOYALTY RECOMMEND

55. Buzzmarketing

56. Content wants to be free

57. How to control millions
of inaccurate and
divergent
conversations ?
YOU DON‟T
Consumers are beginning in a very real sense to own our brands and participate
in their creation … We need to begin to learn to let go.
A.G. Lafley, CEO and Chairman of P&G, October 2006
(cc) Lynette Webb, 2006

58. 

59. „Help us choose‟

60. Let them improve your products

61. Let them build their own

62. Roll your own commercials

63. Second Life is soooo
5 minutes ago

64. What IS it good for ?

65. The Power of Recommendation

66. The Power of Recommendation
1955 1967 1983 2001 2007
Word-of-mouth is 7x more effective than newspaper
advertising, 5x stronger than a personal sales pitch and 2x as
effective as radio advertising
Marketing Science Institute, 2006
This is not exactly news....

67. How can we measure all this

68. HOW LIKELY ARE YOU TO RECOMMEND?
Extremely Extremely
unlikely likely
0 1 2 3 4 5 6 7 8 9 10
DETRACTORS PASSIVES PROMOTERS
NPS™= (Promoters-Detractors)/Total
Net Promoter Score ™ is a registered trademark of Bain & Company, Satmetrix and Fred Reichheld
The Power of Recommendation

69. Promoters make you
more money
-They spend more
-They negotiate less
-They stay longer
-They are easier to service
-They upgrade quicker
-...
Slide: Bain & Company,
official NPS(tm) presentation Fred
Reichheld.
Net Promoter Score ™ is a registered trademark of Bain & Company, Satmetrix and Fred Reichheld
The Power of Recommendation

70. Activate your Fans

71. Must See

72. No, it’s not...

73. So get some people…

74. Where ARE the orcas?
Who will be the First Penguin?

75. • Traditional compensation & other systems stand in the way
• Creative and media work in isolation
• Lack of experience with new media (not everyone went
“dot-com”)
• Venturing into uncharted territory = risky (even on a
personal level)
• Nobody really knows how things will evolve

76. General Eric Shinseki, Chief of Staff, US Army:
quot;If you don't like change,
you're going to like irrelevance even less.”

77. GO DO IT

78. • A deeper look at the model
• How to improve the relevance of your mediamix
• How to monetize WoM and Buzzmarketing
• Social Networks more indepth
• Net Promoter Score galore
• Many many more examples and cases
Tomorrow

79. The Element of Surprise

80. Http://blog.futurelab.net
sko@futurelab.net if you want this presentation