While we at iProceed.com have been concerned about advertising for a while, our hypothesis was validated when James D. Speros, the Chairman of the Association of National Advertisers (and the Chief Marketing Officer at Ernst & Young) admits to it. He writes in Fortune, "...advertising is no longer the be all and end all of moving product...Where we're all missing the boat is the lack of focus on creating big ideas that resonate with consumers. Instead of paying agencies by labor-based fees and commission, we should pay by the value of the marketing ideas they create."
Ouch! It's probably not music to the ears of many advertisers and the agencies that they work with.
There are two good things about Speros' admission:
Ouch! It's probably not music to the ears of many advertisers and the agencies that they work with.
There are two good things about Speros' admission:
- The folks in the advertising world are finally admitting that there is a fundamental problem.
- Things have to change everywhere: advertisers, advertising agencies, and the media.
Let us review some of the ither things that are happening right now:
- Search advertising is exploding.
- Consumers think that there is too much advertising and they are willing to have a lower quality of life if there are fewer ads.
- Online ad clutter is bothering consumers.
- Digital media is rapidly replacing paper magazines and radio/television.
- Disturbing trends emerge in the 18-34 male segment: the prime target audience for advertising.
How to develop a new paradigm in advertising?
- Listen to the target audience. They are all trying to run away from almost all forms of advertising and if you push it down their throats, they will embrace Tivo and Pop-up ads blockers. Most consumers will be willing to accept some form of advertising but they want it on their own terms now. (Related article: RSS feeds versus email messages)
- If consumers think that it is an ad, it probably is not acceptable any more as a form of advertising. Think "iProceed's three Es of advertising": education, entertainment, and embedment.
- Be targeted. Don't just hope that it will reach the target audience. Make it happen. With the latest technologies, it is possible to achieve that level (something that is not possible with television, radio, and most newspapers)
Related link: Firms have to change their advertising strategy