Neuromarketing

Blipverts from Max Headroom’s world (“20 minutes into the future”) grows more real every day. From The Ego Tunnel by Thomas Metzenger:

“Today, the advertisement and entertainment industries are attacking the very foundations of our capacity for experience, drawing us into the vast and confusing media jungle. They are trying to rob us of as much of our scarce resource (attention) as possible, and they are doing so in ever more persistent and intelligent ways. Of course, they are increasingly making use of the new insights into the human mind offered by cognitive and brain science to achieve their goals (“neuromarketing” is one of the ugly new buzzwords). We can see the probable result in the epidemic of attention-deficit disorder in children and young adults, in midlife burnout, in rising levels of anxiety in large parts of the population.

New medial environments may create a new form of waking consciousness that resembles weakly subjective states — a mixture of dreaming, dementia, intoxication, and infantilization.”

If this page had ads, you’d ignore them

Robin Wauters takes a look at the results of a new Adweek Media/Harris Interactive survey of about 2,100 U.S. adults. Topic: ads
“over six in ten respondents say they tend to ignore or disregard Internet ads. Among those who ignore online ads, two in five say they ignore banner ads (43 percent) the most, and one in five say they ignore search engine ads (20 percent) the most.”
Ms. Wauters notes Internet ad revenues in the U.S. are at an all-time high. What about other media?
“people who said they ignore ads on other media: television ads (14 percent), radio ads (7 percent) and newspaper ads (6 percent).”
If only 7% ignore radio ads, I’ll put that in the win column. Younger folks are more likely to ignore radio ads, compared to older people.
11% in the 18-34 demo say they ignore radio ads, compared to 6% 55+.
Ms. Wauters concludes her post by concluding all ads have to be better. Much better

The Future of Advertising

Once upon a time I thought I might like to work at an advertising agency. I had no idea what an advertising agency did but ti seemed like a glamorous job and I was writing and producing commercial for the radio station I was working at, so… why not.

In the years since, advertising has been what put the pay in my paycheck.

Enter the Web (the dragon has come and gone). Like just about every other institution, advertising is being disrupted. In this article at Fast Company, Danielle Sacks talks to some of the players. If you care who said what, you can read the full article. For that matter, if you’re involved in ad-supported media in any way, you should read the article.

“Something digital immigrants would do is make a phone call to make sure someone received an email.”

Our company is like Ellis Island. I receive email from some co-workers and know that I can turn around in my chair and they will be standing there, “just making sure” I received their electronic message.

“Like a beetle preserved in amber, the practice of advertising has sat virtually unchanged for the last half-century.”

“The ad business became an assembly line as predictable as Henry Ford’s. The client (whose goal was to get the word out about a product) paid an agency’s account executive (whose job was to lure the client and then keep him happy), who briefed the brand planner (whose research uncovered the big consumer insight), who briefed the media planner (who decided which channel — radio, print, outdoor, direct mail, or TV — to advertise in). Then the copywriter/art director team would pass on its work (a big idea typically represented by storyboards for a 30-second TV commercial) to the producer (who worked with a director and editors to film and edit the commercial). Thanks to the media buyer (whose job was to wine-and-dine media companies to lower the price of TV spots, print pages, or radio slots), the ad would get funneled, like relatively fresh sausage, into some combination of those five mass media, which were anything but equal. TV ruled the world. After all, it not only reached a mass audience but was also the most expensive medium — and the more the client spent, the more money the ad agency made.”

“The death of mass marketing means the end of lazy marketing.”

“The Internet has turned what used to be a controlled, one-way message into a real-time dialogue with millions.”

“…the most surprising aspect of JetBlue’s agency search was how many firms still believed that the key to solving any business problem was the 30-second spot.”

“We have to figure out how to get paid for the big idea, and what that idea is worth.” — “People who think that way are supremely well equipped to work in a world that no longer exists.”

“I thought digital was just another medium”

“Collapse is simply the last remaining method of simplification. When the ecosystem stops rewarding complexity,” he writes, “it is the people who figure out how to work simply in the present, rather than the people who mastered the complexities of the past, who get to say what happens in the future.” – Clay Shirky

I have no idea how –or when– this will shake out. Or how much fan poop will come my way. But it’s an exciting time of great change. I describe these as Lawn Chair Moments. There’s going to be a big train wreck and you want to get a good view. But you don’t want to put your lawn chair too close.

More after this brief commercial message.

Will advertising become obsolete?

What does Seth Godin think of advertising? Is it unnecessary? Here is his answer from a blog post at Real Time Advertising Week

“Not unnecessary. Gradually becoming obsolete, though. The cost of the ads goes up, the impact goes down. How can it not? Once people get a TiVo and a Facebook account, the way they allocate their attention changes. And that means the people you most want to reach don’t necessarily want to be reached.”

His answer has been on my mind since I read it. Advertising is “gradually becoming obsolete?” How does someone who works at a company that runs on advertising revenue react to such a statement? A few possibles:

  • Seth Godin is a smart guy and he’s been right more than he’s been wrong so we’re fucked
  • He’s right but it’s going to take a lot longer than he thinks it will
  • He’s partially right. Some advertising is becoming obsolete, but not the advertising that drives our company
  • Advertising is changing and we might call it something else but companies will always be willng to pay to to reach their customers with selling messages
  • He’s wrong. Advertising is here to stay. Period.

Did I miss any?

Frankly, to even wonder about this feels… heretical. Like questioning the flatness of the earth. I’ve written ads; I’ve voiced and produced ads; I’ve helped sell ads. Always taking it as a matter of faith that they worked. If they didn’t, why are businesses buying all these commercials we air on our (pick your medium)? And that they’d always be around.

Your thoughts?

Gas Station TV

My first look at GSTV (Gas Station TV) was at a Phillips 66 station on I-55. It probably took me no longer than 3 or 4 minutes to fill up and I guess there really isn’t much to do with that time, so why not. There were these really short sports/weather/news segments with commercial messages between each. Really can’t imagine someone paying for these but they obviously do. I foresee a time when we pay a premium to AVOID being hammered by ads. Ransom Ads.

“A business model in decay”

“…the creation of content that will be supported by ads is a business model in decay. Abundance isn’t the problem; it’s that the advertisers are now in the content business themselves, and this is a rapidly-growing sector of the advertising world. Advertising is in a full-blown revolution, as company after company discovers they don’t need media the way they used to, because they’ve become media companies themselves.”

Terry Heaton says there is no “content business” anymore and that’s not the business we (his clients) were in anyway.

“We’ve always been in the advertising business, although it sure looked and felt like we were in the content business. Our bottom lines were/are determined by advertising, and that’s the real business we’re in. Media companies need to accept that and move on to finding creative ways to enable commerce in our markets.”

Since posting the excerpts above, I’ve been remembering my days in small-market radio during the ’70s and early ’80s. I was an announcer and program director, but never in sales. We thought of ourselves as “talent.”

It was clearly understood by us that the advertising was the means to the end of creating the information and entertainment (mostly recorded music). We had to pay for all this wonderful stuff we were doing.

What the sales people believed –an management knew– was the news and music and all the rest was merely a way to attract ears for the commercials we sold to advertisers. We were not in the music business or news business… we were in the advertising business.

If you doubt that, go back and listen to this interview with Congressman Paul C. Jones to built the radio station. Or read the recollections of Joe Bankhead, who was one of the stations first salesmen. It was clearly about serving the businesses in the area. They were more than willing to put on any kind of programming that would attact enough listeners to satisfy a sponsor.

Used head stone. Make offer.

I think the creepy trumps the amusing on this classified ad. First question: What about the immortal remains of Bertrand Goforth? Does he have a new head stone? Why?

If my name is also Bertrand Goforth, won’t the dates be a little off?

Are they hoping someone named Bertran Goforth was buried without a marker, in hopes the family would find a deal like this down the road?

I’d really like to know if someone buys this… and why.

[Thanks to Joel for spotting this gem]

“Local” means something entirely different now

Roger Gardner offers a good example of the idea in headline.

“Jefferson Bank, in Jefferson City, Missouri, has the banner on the business section of NYT. Of course, they don’t buy it everywhere, NYT knows where I am, so it inserts the local ad. Interesting to me is who sold it to Jeff Bank and how?”

Let’s say you sell yoga supplies and would like to advertise locally. But the newspaper, radio and TV stations don’t offer any programming or content relevant to your customers. The local media can’t afford to produce that programming for the few hundred people into yoga.

If you have a great database of readers (as the NYT certainly does) … and an ad network that can pull from yoga shops all over the country… you can serve up ads like the one above.

I think a more practical approach might be for the yoga shop owner to create his own content and community. We’re seeing that happen every day. Or, if they just don’t have the time… others will create that branded content for them. But the result is more and more business becoming “media” creators.