Change in marketing&communications -2011

Everything
Changes
Change in marketing and
communications
Lassi Nummi, Zeeland
Guest lecture - Estonian Business School - 2011

torstaina 9. helmikuuta 2012

Agenda
- Advertising in 2011 - what the f*** is happening ?
- Money money money
- New forms of marketing
- How companies can adapt the change ?
(by Janne Saarikko)


QUOTES FROM


“The company also said they have
extended the offer to the rest of the cast,
and "are urgently waiting a response."


Future ?

http://vimeo.com/10251808


Clearly something is happening.
Why ?


Since in business
school -
Let’s talk money

John Wanamaker

I know half the money I spend on
advertising is wasted, but I can never
ﬁnd out which half.


Copyright magnaglobal 2009


??

??

Copyright magnaglobal 2009


Finland - opinion of marketing executives -asked 08/2011.
60
50
40 40
36 33
30
20 22 19
15 16 16
9 8 6
0 *
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012*

-20 * Kysytty 8/2011

-40 -41

-60

Mainosbarometri® 27.9.2011


volyymin kehittyminen
MEDIA INVESTMENTS 2012
0% 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % SALDO
100 %

Newspapers total
SANOMA- JA KAUPUNKILEHDET -31
YHTEENSÄ
9% 51 % 40 %
Daily (4-7 / week)
Päivälehdet (4-7 krt/vk
6% 53 % 41 % -35
newspapers
ilmestyvät sanomal.)

1-3 krt viikossa ilmestyvät
1-3 / week newspapers 2 %
sanomalehdet
47 % 51 % -49

11 % 53 % 36 % -25
Free newspapers
Kaupunki- ja noutolehdet

Magazines total
AIKAKAUSLEHDET YHTEENSÄ 18 % 56 % 26 % -9

GeneralYleisölehdet
magazines 13 % 46 % 41 % -28

-13
Professional magazines
Ammatti- ja järjestölehdet 13 % 61 % 26 %

Customer magazines 4 %
Asiakaslehdet 85 % 11 % -7

Kasvaa Ennallaan Pienenee


MEDIA INVESTMENTS 2012
100
0% 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % % SALDO
-54
Printed directories
PAINETUT HAKEMISTOT 0 % 46 % 54 %

TV advertising
TELEVISIOMAINONTA 25 % 58 % 16 % 9

VERKKOMEDIAMAINONTA
Online advertising (tot) 77 % 20 % 3% 74
YHTEENSÄ
Display- (banner) ja
Online banner advertising
luokiteltu verkkomainonta
61 % 35 % 4% 57

Online directories and
Sähköiset hakemistot ja
52 % 41 % 7% 45
search word advertising
hakusanamainonta

Radio advertising
RADIOMAINONTA 13 % 75 % 12 % 1

Cinema advertising 6 %
ELOKUVAMAINONTA 67 % 27 % -20
ULKO- JA
Outdoor advertising 20 % 58 % 22 %
LIIKENNEMAINONTA -2

Grows
Kasvaa No change
Ennallaan Decreases
Pienenee


WHY?

WHY?
Cause everyone is broke - except China
- Measuring counts
- Focusing on more cost effective ways (digital)

ROI

ROI
RETURN ON INVESTMENT
- EVERYTHING what you do has to have a monetary measurable
value!!


KPI

KPI
KEY PERFORMANCE INDICATORS
- these are WHAT YOU MEASURE
- When followed and deﬁned correctly they generate ROI


Measuring : measure + measure + measure + measure +
react react react react

Customer service

Set up
KPI:s
and Campaign Q1 Campaign Q2 Campaign Q3 Campaign Q4
goals for
each
function

Social media

Other selected business functions (Sales, online sales, etc etc.)

deﬁne short term and long term measurement periods for each action and total actions

Cumulative data collection- keep KPI:s consistent to keep up the measurement


Ok, ﬁnancial crisis hits
hard- but there’s upside..


New forms of marketing
- or actually new ways to
do it.


Traditional funnel..
FUTURELAB

The Feedback Cycle

Marketer-generated Consumer-generated

(Think ”funnel”) (Think ”megaphone”)

Be aware Talk
Consider Opinion

Buy Use

!?
Social content, networks, interactions

By Dave Evans


Consumer also has a funnell..
FUTURELAB

The Feedback Cycle

Marketer-generated Consumer-generated

(Think ”funnel”) (Think ”megaphone”)

Be aware Talk
Consider Opinion

Buy Use

Social content, networks, interactions

By Dave Evans


Let’s simplify a bit....

Brief of a campaign :
To make audience believe this man is a great lover.


Traditional advertising:

This man is a great lover !
Only for you - only today.
www.greatlover.com

TV Online banner Outdoor billboard
Print Radio ad


Direct sales

I am a great
lover !!!


PR

Greatest lover ?

Rome - 17.11.2011

During the press conference held in lorem ipsum
som dolor Lorem ipsum dolor sit amet,
consectetuer adipiscing elit, sed diam nonummy
nibh euismod tincidunt ut laoreet dolore magna
aliquam erat volutpat. Ut wisi enim ad minim
veniam, quis nostrud exerci tation ullamcorper
suscipit lobortis nisl ut aliquip ex ea commodo
consequat. Duis autem vel eum iriure dolor in
hendrerit in vulputate velit esse molestie
consequat,


Reputation building - peer to peer.

He is truly a great
lover..


Who would you believe ?

When used correctly - great effect.

Market is changing

Marketing is changing

Consumers are taking over ?


The Estonian advertising agency and client network

Source: Piret Õunapuu, MA thesis


How companies should react to the change ?
By Janne Saarikko, Zeeland’s Strategy director.


What should companies do ?

1 2 3 4


1
2
3
4

1 CTO CMO VP,
CEO

CFO COO VP,
Com R&D

2
muni
catio
ns

3
4
Traditional organization - time spent on silos ﬁting each others.

1
2
3 CMO

CF VP, HR
Sales

&D
O ,R
VP

4
Everyone should be an expert and a generalist at the same time.

1
2
3
4 2011 2012 2013

Old school planning with 2-3 year perspective is waste of time.

1
2
3
4 2011 2012 2013

Planning should focus in agility and rapid changes, reaching for the star.

1
2 Company

3
Customer

4
Time of corporate gatekeepers is over - transparency rules.

1 Community X

2
Customer

CompanySubcontractor

3
Competitor

Community Y
Partner

Customer

4
Corporate walls are being breached, itʼs all about business ecosystems.

1
2
3
4
Your country target market does not exist anymore!

1 Global? Hyperlocal?

2
3
4
Your competition is either GLOBAL or HYPERLOCAL.

So, what about
marketing and
comms?

I like this!
this looks
cool!
Find the
rationale!
Increased sales! -
Great marketing! Measure for
real!
Work
My decision. together!
ʻCause I know!

Old school marketing vs. new school marketing.

2001 2009
Customer Customer

Advertising agency AD PR DM DIGI


2011
Customer

Marketing agency

AD PR DM DIGI


2013
Customer

Solution agency?

AD PR DM DIGI ? ?

Marketing
Sales
Business development
Services offering


2015
Customer

Solution agency?

AD PR DM DIGI ? ?

Marketing
Sales
Business development
Services offering


What should I do
as marketer ?


Try to break the silos.
Become multifaceted.
Cross the organisational
borders, you can.

Polish and communicate the
vision. Do not plan too far
ahead. Plan often.
Measure your vision.

Stop opening the gates.
Break the walls and let the
business in!

Compete against the worldʼs
best.

Aim for the “best in our city”
position.

My decision. Find the
ʻCoz I know! rationale!

Measure from a right distance.
Work in teams.
Create value by sharing.

Cooperate with those
who endeavor the
whole.
Be brave with the
brave ones!

The future of ad agencies ?

http://youtu.be/IkOQw96cfyE


To wrap up - what you should remember.
- Choose your special area and develope in it
- Innovation is the new creative
- Measure, Measure, Measure
- ROI (Return on investment)
- KPI (Key performance indicator)
- Be agile, react fast.
- Be transparent on what you do
- Think outside the box


Thank you!


Change in marketing&communications -2011

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