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Advertising in 2020

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Introduction

Just as consumers and technology have evolved, so has the landscape of advertising and will continue do so in unpredictable ways between now and 2020. The rise of technology has had an instrumental effect on advertisers as traditional forms of advertising have been substituted by digital tools. New innovations in the internet and specifically mobile have created 2-way communication channels, altering consumer and advertisers relationship. Consumers now hold the ability to choose what they interact with and see, in a huge cultural change. The interpretation of big data by advertisers will enable brands to interact directly with an individual, whilst development in new technology like virtual reality and augmented reality will undoubtedly change the way everyone communicates. The next 3 years will see advertisers exploiting innovative digital tools in a bid to appeal to consumers like never before.

Convergence Culture

Convergence in media can be defined as the interlinking of services and industries, in turn creating new forms of media. Combinations of communication networks, the internet and digital media have now created countless forms of communication channels. As an outcome society with the inclusion of advertising has seen a large cultural shift towards digital media. Convergence challenges the traditional forms of media (Jenkins, 2004). In some instances convergence is related to technological advancements, however these changes begin in culture and society. Technology or digital advancements only increase societies ability to connect (Jenkins, 2004).

Originally only a small number of companies held the ability to communicate and connect. Traditional forms of advertising such as print, radio and tv media were utilized as one-way form of communication, controlling societies views. By 2019 print media is forecasted to be eighth the net worth of internet advertising (Meade, 2015) with print in the form of newspapers ceasing to exist in the near future.

TV is still the most lucrative traditional advertising channel but is also seeing a sharp decline (staff, 2017). The use of on demand TV has impacted traditional viewers. Consumers are choosing services without advertisements making use of the digital alternatives. On the biggest public stage, the Super Bowl, advertisers are seeing it, as less advantageous to market in the halftime show (Calkins, 2017). More risk is associated in the purchasing of this space with increasing prices and more recently and importantly public ridicule.

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video source (https://tinyurl.com/zpv8cqv)

“The event receives so much attention and scrutiny that a Super Bowl advertiser can find itself at the heart of a negative PR nightmare”- Tim Calken

It is apparent that now and even more so in 2020 media will be under public control, reconstructing the norms and the ability to tell stories. (Henry Jenkins, 2009). As the audiences become the producer, they redefine, archive and appropriate current media (Bird, 2011). Bloggers, podcasters and Youtuber’s are now influencing advertising and brands. No longer are consumers part of an advertising process, instead they hold the power and capabilities to participate within their culture (Jenkins, 2004). Advertisers are forced to appeal to consumer’s ethics and values to connect in a meaningful way or otherwise survive degradation.

Customer Centricity

In order for advertisers to adapt with a converging culture it is crucial to create positive user experiences through customer centricity. Authentic Customer Centricity defines the term as

“Aligning the resources of your organization to effectively respond to the ever-changing needs of the customer while building a mutually profitable relationship” (Zafer, 2015).

Insights2020 found companies already using this strategy delivering business values for customer needs and out performing their competitors (Driest, 2015). This model will be used greatly in the future of advertising to meet the consumers’ needs with a converging culture. As customers are the heart of demand-driven economy, they are advertisers most valuable asset and the reason companies are moving toward a customer centricity approach (Stuart, 2004). In HumanKind a book written by Tom Bernardin , CEO of the iconic advertising agency Leo Burnett and Global Chief Creative Officer Mark Tutssel, the importance of the consumers communication is said to be vital. In an address to stake holders Tutssel redefined the agency as ‘humankind communications company’. The move was made to change the way they communicated as an impact of technology and growth of the population. The revelation was found in first form of user-generated content. The industry must realize ‘ad agencies and clients don’t create iconic brands, people do’ (Morrissey, 2011).

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Notably, fast food-chain Mc’Donald’s has accounted for the changing market in a bid to improve their brand image. The company responded to customer suggestions and has stopped the use of chickens raised on antibiotics whilst removing the use of milk from cows injected with growth hormone (Jr., 2015).

A key quality of customer centricity is the ability to improve a user experience. Don Norman defines user experience by “encompassing all aspects of the end-user’s interaction with the company, its services, and it’s products”(Norman, 2017).

In an evolving market space consumer touchpoints with a company are extremely important. In professor Sven Brodmerkel and Nicholas Carah’s book Brand Machines, Sensory Media and Calculative Culture they highlight the importance of a user’s experience. “The emerging forms of interactive, personalised experiences at the individual level promise advertisers a new realm of consumption in the private sensory experience of the consumer’s mind and body” (Brodmerkel, 2016). Gareth Kay in Wharton’s Advertising 2020 project, agrees. Nevertheless, arguing advertisers need to utilize radical simplicity, the invisibility of powerful design and the stuff that “just works” (Brodmerkel, 2016). The future of advertising will see a move towards customer centricity in a converging culture and user experience being top of mind within this approach.

Trends

Mobile Advertising:

Internet advertising is expected to be the largest advertising channel by 2018, whilst mobile advertising is the third largest medium going into 2017 (Murphy, 2016). Mobiles are the most used device worldwide, ZenithOptimedia’s trading director Sue-Ellen Osborne said, “Growth in digital has primarily been driven by an increase in mobile advertising, which grew 50 per cent year on year” (Mason, 2016; Roberts, 2014). Mobiles are the most used device worldwide, ZenithOptimedia’s trading director Sue-Ellen Osborne said, “Growth in digital has primarily been driven by an increase in mobile advertising, which grew 50 per cent year on year”. Key focus will be held on mobile advertising as it becomes the primary device used on a global scale.

The need for brands to real-time micro manage is of increasing importance. The ‘real-time principle’ in large created by the power of mobiles, has diminished the need for the ‘big idea’ (Brodmerkel, 2016). Kevin Roberts CEO of Saatchi & Saatchi believes brands have to produce small ideas on a continuous basis. Mobiles in large are the way in which brands will connect with users, to do so “a brand must move at the speed of culture” (Roberts, 2014).

Mobile devices are currently used for all user’s social needs with the addition of other necessities appropriated by the user. As an outcome, a large amount of personal data is stored on anyone device, acting as a database for advertisers monitoring consumer needs. Currently mobile data is moving in the form of Hyperlocal advertising. Geo-location provides an individual’s location and will advertise businesses closer to that relative device (N.A, 2016)

Following Henry Jenkins findings and web 3.0 the idea of a two-way communication channel means advertisers will need to adapt. Consumers will hold the ability to choose what brands they follow and how they interact with a brand. Advertisers will use smart phones as a tool to build brand relationships like traditional media have done in the past, creating engaging and immersive content consumers want to participate in.

Brands like Samsung have already used mobile to immerse consumers into content. Reinventing an album launch experience Samsung used mobile advertising across different platforms and channels to show the rising of Rihanna from a girl in Barbados to a pop queen (Awards, 2016).

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Using Kevin Robert’s idea of small continuing ideas Samsung created a cultural bomb redefining an album launch experience. Within 14 hours the album was downloaded 1.4 million times and drove over 13 million streams making ANTI the fastest album to go platinum in history.

Advertisers will strive to create brand affinity (strong and emotional connection with a brand) as consumers willingly choose to be a part of a brands image (Box, 2017). In a market becoming dominated by mobile advertising, advertisers cannot narrowcast media. As Calle Sjoenell, Chief Creative office of Ogilvy & Mather clearly states agencies have to work “more like a news agencies constantly adapting and making new media cross all media” (Brodmerkel, 2016).

Big Data

Big Data is a key asset for advertising in 2020, creating mass customization and customer centricity. Big data allows advertisers to test on a large scale identifying biases and context towards a certain demographic whilst holding the ability to do-so on an individual level (Brodmerkel, 2016). Nevertheless, it is a tool needing to be used in the correct manner exploiting the right data (Barns, 2015).

Access to data in this capacity allows advertisers to develop models on specific individuals and create content relative to their data stored online. Legal scholar Ryan Calo notes, the ‘availability of data about people, coupled with the power to make sense of this data and apply the insights in real time, will lend the behavioral turn an even greater relevance to daily life’ (Calo, 2014). The need for customer segmentation, a traditional marketing tool, is decreasing. Forbes suggests only using this approach when there is insufficient historical information on a given product or market, otherwise predictive data models should be considered (Raskutti, 2016). Advertising will be more relevant and targeted to an individual as a user’s online presences is evaluated, distinguishing their preferences. As big data evolves the ability to target a user will improve, allowing brands to advertise in real time using a multitude of factors.

In using big data the ability to know an individuals patterns will increase the workflow of the advertising industry. In doing so, strategy from creation to deployment will enable the industry to take more risks within the confinements of their target demographic.

New Trends

image source (https://tinyurl.com/h88po7u)

Virtual and augmented reality are technologies that are used today, nevertheless they are not yet tools that have reached critical mass. Nevertheless, the tools will be utilized in the near future. Combining both technologies, net worth by 2020 will be in access of $110 billion USD (Digi-Capital, 2016).

Virtual Reality

Virtual reality creates a three dimensional world, enabling users to interact digitally with the use of goggles like the Occulus Rift owned now by social media moguls Facebook. Originally created for gaming the acquisition by Mark Zuckerberg in 2014 was a large step for the company and the technology. Zuckerberg stating, “After games, we’re going to make Oculus a platform for many other experiences”. It will be another avenue in which advertisers can interact with consumers. Created for gaming the ability to tell stories is an inert asset of the technology. Advertisers can fully immerse viewers into an experience of their choosing.

“Imagine enjoying a courtside seat at a game, studying in a classroom of students and teachers all over the world or consulting with a doctor face to- face—just by putting on goggles in your home” (Zuckerberg, 2014).

Currently obstacles facing the technology is the need for users to purchase expensive equipment, to use media that is usually low quality in pixel density (Slefo, 2017). Nevertheless, companies such as Coco-Cola, Mercedes and New York Times have created experience for users who are willing to test the new technology (Greenwald, 2016). With the barrier to entry companies have also devised a way around expensive equipment and instead using technology consumers all currently have.

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video source (https://tinyurl.com/ht5k5vc)

Augmented Reality

Augmented reality has similarities with virtual reality, however, instead the medium overlays digital simulations over human vision. See through lenses augment human vision with digital visualizations and enhancements (Brodmerkel, 2016). Currently this technology maybe more then a decade away, however projects like Magic Leap and Google’s Glass have toyed with conceptual ideas. The ideation of this technology is to improve everyday life. Advertisings could easily make use of this technology, giving the users the ability to view in real time advertisings of brands nearby relating to their online image.

Conclusion

Technology is quickly transforming the advertising landscape. Over the last ten years the advertising industry has been increasing their media reach via the internet. Mobile as predicted by Insightr in 2009, is a channel coveted by agencies even prior to 2020 (Insightr, 2009). In addition, users are now more than ever in control of their experience and what they choose to view. Digital media has clearly over taken traditional forms of media with trends suggesting, media that once was will cease to exsist by the year 2020. Internet advertising via mobiles will still be the main channel for advertisers. Customer centricity will need to be the approach to customers as advertise move forward. Content will be meaningful and thoughtful to create consumer interactions. Big data will allow advertisers to harness an individual’s needs and apply this in context most suitable to them. New and upcoming technologies such as virtual reality and augmented reality will be used in future as they gain critical mass over the coming years. While the industry is evolving, it is yet to see the future of the Minority Report. Still, it is an exciting time for advertising as new technologies bring about new ways to interact with consumers.

References

Awards, W. (2016). Samsung Antidiary. Retrieved from http://webbyawards.com/winners/2016/advertising-media/campaigns/mobile-campaigns/samsung-antidiary/

Barns, M. (2015, June 22). Big Data's Big Impact on the Future of Advertising. Retrieved from Recode: http://www.recode.net/2015/6/22/11563780/big-datas-big-impact-on-the-future-of-advertising

Bird, E. (2011). ARE WE ALL PRODUSERS NOW? Cultural Studies.

Box, B. T. (2017). Brand Affinity: Don’t Squander It. Retrieved from Brand Tool Box: http://www.brandtoolbox.com/brand-affinity-dont-squander-it/

Brodmerkel, N. C. (2016). Brand Machines, Sensory Media and Calculative Culture. London: Springer Nature.

Calkins, T. (2017, January 18). Why Super Bowl Ads Are a Tough Sell in 2017. Retrieved from Fotune: http://fortune.com/2017/01/17/super-bowl-li-ads-fox/

Calo, R. (2014). Digital Market Manipulation. George Washington Law Review, 995-1051.

Connelly, T. (2015, December07). The Internet will replace TV as the biggest ad channel by 2018, predicts ZenithOptimedia. Retrieved from The Drum: http://www.thedrum.com/news/2015/12/07/internet-will-replace-tv-biggest-ad-channel-2018-predicts-zenithoptimedia

Digi-Capital. (2016, January). Augmented/Virtual Reality revenue forecast revised to hit $120 billion by 2020. Retrieved from http://www.digi-capital.com/news/2016/01/augmentedvirtual-reality-revenue-forecast-revised-to-hit-120-billion-by-2020/#.WK67kq4wi-o

Driest, F. v. (2015, September 29). First Wave of Insights2020 Study Highlights the Role Insights and Analytics Play in Driving Customer-Centric Business Growth. Retrieved from Millward Brown: http://www.millwardbrown.com/global-navigation/news/press-releases/full-release/2015/09/29/first-wave-of-insights2020-study-highlights-the-role-insights-and-analytics-play-in-driving-customer-centric-business-growth

Greenwald, M. (2016, June 15). 6 Of The Best Marketing Uses Of Virtual Reality. Retrieved from Forbes: http://www.forbes.com/sites/michellegreenwald/2016/06/15/6-of-the-best-marketing-uses-of-virtual-reality/#361ded7538f4

Henry Jenkins. (2009, September 21). Retrieved from Youtube: https://www.youtube.com/watch?v=ibJaqXVaOaI

Insightr. (2009, August 18). The future of mobile advertising - a vision for 2020 from Acision and OgilvyOne. Retrieved from Insightr: http://insightr.com/blog/2009/8/18/the-future-of-mobile-advertising-a-vision-for-2020-from-acis.html

Jenkins, H. (2004). The cultural logic of media convergence. International Journal of Cultural Studies, 33-43.

Jr., H. M. (2015, March 2017). Fortune. Retrieved from The art to listening: how McDonald’s is cleaning up its image: http://fortune.com/2015/03/17/the-art-of-listening-how-mcdonalds-is-cleaning-up-its-image/

Mason, M. (2016, January 4). Rise forecast for advertising spend but print revenue to fall. Retrieved from Sydney Morning Herald: http://www.smh.com.au/business/rise-forecast-for-advertising-spend-but-print-revenue-to-fall-20160103-glye1q.html

Meade, A. (2015, June 15). Print advertising tipped to make up just 5% of total spend by 2019. Retrieved from The Guardian: https://www.theguardian.com/media/2015/jun/15/print-advertising-tipped-to-make-up-just-5-of-total-spend-by-2019

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N.A. (2016, December 22). Location-Based Mobile Advertising: A Step-by-Step Guide for Small Businesses. Retrieved from Mobile Ads Blog: https://www.mobileads.com/blog/location-based-mobile-advertising-small-business/

Norman, D. (2017). The Definition of User Experience. Retrieved from Nielsen Norman Group: https://www.nngroup.com/articles/definition-user-experience/

Raskutti, B. (2016, September 29). Is There A Role For Customer Segmentation In A Big Data World? Retrieved from Forbes: http://www.forbes.com/sites/teradata/people/bhavaniraskutti/#add3303b7655

Roberts, K. (2014). Winning in the Age of Now. Retrieved from Saatchi & Saatchi: http://www.saatchikevin.com/speech/ winning-age-now/

Slefo, G. (2017, February 08). Only 8% of Brands Intend to Use Virtual Reality for Advertising. Retrieved from http://adage.com/article/digital/brands-abandoning-vr/307914/

staff, M. (2017, January 11). The State of Traditional TV: Updated With Q3 2016 Data. Retrieved from Marketing Charts: http://www.marketingcharts.com/television/are-young-people-watching-less-tv-24817/

Stuart, D. R. (2004). Valuing Customers. Journal of Marketing Research, 7-8.

Zafer, A. S. (2015). Authentic Customer Centricity. Information Age Publishing.

Zuckerberg, M. (2014). Untitled Facebook post. Retrieved from Facebook: https://www.facebook.com/zuck/posts/10101319050523971

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