Category Archives: Advertising

5 Reasons Why Snapchat Spectacles Will Become a Hit

Google Glass failed because it was used by uncool nerds in shower and maybe due to some other reasons as well. Snapchat recently announced Spectacles, their first hardware offering.

Compared to Google glasses, I see rosier future for the Snapchat spectacles:

1. Hardware supports existing Snapchat product.

You can immediately envision how the new Spectacles actually enhance your Snapchat user experience. Spectacles are slave for overall Snapchat use case and provide natural gateway to deepen your relationship with brand. Google Glass was more branded as a separate product.

2. They are more lifestyle than technology.

spectacles

The glasses look cool. They totally embody Snapchat brand. Spectacles are so LA. They are not looking like bunch of engineers designed it, which has been the Achilles’ heel of many wearables. Wearables should be approached fashion-first, technology-second. Usually it is great if you can create a tribe of followers, unless they are called glassholes.

3. They are meant for only one thing.

You can only record 10s video with it, that´s it. We don´t need swiss army knife wearables, we need wearables that are good at doing on particular thing. The videos are not just replicas of what you would be creating with smartphone. They are circular, which resemble more of human vision. The videos created with Spectacles are unique.

4. They are affordable.

“They’re positioning it as this fun toy for people to engage with, not something that you need to think about as your next big technology investment.”

– Josh Elman, Greylock Partners

They only cost 130 dollars, so teens are more likely to drunk buy them from eCommerce site instead of Apple watch.

5. Spectacles have nothing to lose, but much to gain

“It’s about us figuring out if it fits into people’s lives and seeing how they like it.”

– Evan Spiegel (Snapchat CEO)

The CEO of Snapchat calls the spectacles a toy and there will be limited distribution in the beginning. Snapchat will not live or die with Spectacles. However, if Spectacles will become hit, it could have interesting implications for Snapchat. They could free themselves from the confinement of smartphones. Snapchat has already forced brands to create vertical video, maybe this will change on how we approach digital photography in general. Philosophically it is also interesting that Spectacles are meant for the selfie-generation but the focus is outwards. You are filming what happens around you, not yourself.

What starts now as novelty, could become a true game changer.

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Is Digital Targeting Just a Hoax?

Before I went to holiday, there was lots of chatter about the ”failed” Facebook targeting experiment of P&G. This naturally gave fuel to the fire to those denouncing digital advertising (namely Ad Contrarian). Essentially P&G run targeted Facebook for Febreze (pet owners and large families for example), but they got better results when they were just targeting broader audience of just over 18 year olds.

If you have been doing marketing at professional level for a while the results were not surprising at all. However, you should not use this as a proof point that targeting does not work, because of the following reasons:

1. FMCG is a different kind of beast, you can just blast your audience with bazooka

“The bigger your brand, the more you need broad reach and less targeted media,”

– Brian Weiser, Pivotal Research Analyst

Majority of P&G brands (including Febreze) are unique brands because they are truly for everyone. Majority of FMCG is mass reach, so it is not surprising that when you have broad targeting you have better results than when just focusing on few sub-segments. Actually in most of the markets you should not even bother with Facebook. If you have money running TV ads, they would still probably be more effective than doing anything on Facebook. And that is essentially what P&G has done. They have increased their TV spending. FMCG is first-and-foremost about top-of-mind and visibility on shelf. To achieve that you opt for the channel getting you maximum awareness.

Pretty much all the rest of the brands cannot work with such a broad sweep. Not all of the products live and die through the mass awareness. If you need to get 1000 quality leads, targeting the whole population is not most likely be more cost-effective than smart targeting. The main benefits of digital advertising come when you are selling in eCommerce, because you can then truly track your results and optimize. Then shooting with bazooka is not the right tactic.

2. Targeting without personalization is not targeting

Apparently they run the same creative to all the different segments. This is akin to running nighttime ad at 11AM. It is like narrowing the list of girls you want to go out to date with, but addressing them all with the same name. If content is king, context is truly the king kong. As you have narrowed your audience, you should also narrow your message to be as relevant as possible to your target audience.

3. Targeting based on intuition is not targeting

In the articles it was not said how the different target groups (pet owners and large families) were selected, but I would assume that they were based on human intuition. The beauty of digital advertising is that you let machines to try out different target groups, different messages and let them automatically favor what truly works. Humans are incapable of handling that many tasks and they are more biased than smart algorithm.

So the failure of Febreze seems obvious in hindsight. You started narrowing although your audience is as broad as it gets. You did not narrow your message to your narrow audience. Lastly you based your targeting on human intuition instead of testing potential audiences with machine learning.

The more we let algorithms handle our marketing, the more effective it will become. P&G experiment shows more human fault than failure of highly-targeted, highly automated algorithm-driven approach.

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Marketer Time Gap: Why Singapore Overspends in Print Media?

I was astonished to read the new report from Datalicious and eConsultancy about where the media budgets are generally going in Singapore. Based on the respondents on that survey, they use 42% of their marketing budget to print, although audience uses only 10% of their time there. This feels like a massive overspending in print and total waste of money.

eConsultancy & Datalicious: Media Budgets Index- Comparing Media Budget Allocation to media consumption

eConsultancy & Datalicious: Media Budgets Index- Comparing Media Budget Allocation to media consumption (2016)

That people are spending time on some channel does not necessarily mean that you can reach people there effectively. E.g. people spend time on WhatsApp where advertisers are not allowed. Or TV viewership is moving towards Netflix, where you cannot interrupt the audience with TV ads. Impact is not equal to time. Still this statistic gives indication that advertisers are not using their media money as wisely as they could. These results strengthen the five principles I have encountered anecdotally during my time in here:

  1. Stop overspending on print. The time consumers spent on print will not be growing so do not let the affordability fool you.
  2. Keep your TV spend around where it is. It is expensive channel, but still one of the most effective mediums to gain massive reach and also tell emotional story.
  3. Consider the role of digital for your company. Your audience is spending bigger proportion of their time every year in digital. If you are not understanding what your consumers are doing there, you will be marketing in places where your customers aren´t. The question should not be should you invest on digital, but how you will invest on digital.
  4. Reconsider radio. Radio is the unsung hero of the media mix. Cost-effective channel that people still spend surprisingly long time with. During my whole advertising career, radio has always been pariah of different media types but based on these results there is opportunity to improve your media effectiveness by adding it to your media mix. Plus it is opportunity to do some really great ads.
  5. Based on the same research over half of the marketers are not using attribution or don´t even know what it is. If you are not measuring and assessing the effectiveness of your different media channels, start now. Otherwise you keep spending on print, because it doesn´t seem to be completely broken method based on your results (which are not based on attribution). Unfortunately there will be no transition from working ok to not working at all.

Throughout my whole career, I have advocated for digital and it seems that my clients have been waking up to the consumer reality. This study shows that there is a still lot of work to do to make all the marketers realize the current lay of the land.

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Anatomy of An Insight: Blood

nobloodshouldholdusback

This Bodyform ad might be my favorite ad of the year.

Insight: It´s ok to draw some blood when you do sports.

Especially FMCG category is filled with fake images of shiny happy people who are so detached from reality that I wonder how the brand managers and agencies can live with themselves. Our audience is not stupid. Having blue liquid in sanitary pad commercials has been a running joke for as long I remember seeing advertisements.

Many of the brands might have been toying about showing actual blood in the ads; the idea is not that novel. What instead is novel, that Bodyform had the balls (or ovaries in this case) to actually do what none of the other brands had not dared to do before.

Because of popularity of Game of Thrones, Crossfit and MMA, our audience is accustomed to more rough and rugged imaginary. Many of the marketers have not realized this sense of aesthetics and that is why many of the ads nowadays look over-polished and just plain fake.

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Ferment and Distill Your Ideas

“Alcohol, taken in sufficient quantities, may produce all the effects of drunkenness.” 
– Oscar Wilde

I like alcohol in its various forms and like with many things the more you know the background of it, the more you enjoy the experience. Therefore I don´t only consume ethanol, I read a lot literature about it (hence camouflaging it from problem to hobby). Besides Three Martini lunches, the art of making booze and the art of making great marketing have lots of similarities. For example this passage about the difference of fermentation and distillation in the “Proof” by Adam Rogers captures something essential about our field of work as well:

Fermentation is a natural process, as close to a miracle as a science-minded type like me would ever acknowledge. Over human history we have learn to harness and adapt it. We domesticated the micro-organisms that make it possible, designed containers friendlier to it, created business around it. But a winemaker taking credit for fermentation is like beekeeper taking credit for honey. Fermentation would happen whether men and women were here on earth or not. If a fig spontaneously ferments in the forest, a monkey is there to hear it. (And eat the fig. And get drunk.  

Distillation, though, is technology. Human being invented it; we came up with the process and developed the equipment. It requires the ability to boil a liquid and reliably collect the resulting vapors, which sounds simple. But to do it you have to learn a lot of other skills first. You have to be able to control fire, work metal, heat things and cool them, make airtight, pressurized vessels. You need a big brain with wrinkled cortex, maybe some opposable thumbs. But most of all you need a desire to change your environment instead of just live with what you have. Distillation takes intelligence and will. To distill, literally or metaphorically, requires the hubris to believe you can change the world.
 

The great marketers understand the difference of fermentation and distillation and when to utilize both of the methods to come up with ideas.

“Fermentation may have been a greater discovery than fire”
– David Wallace

Ferment: There is time and place to rely on your emotions and gut feeling. Fermentation is a skill that you either have or not. Let it flow and don´t try to control things. Use just pad and pen, technology does not make fermenting better. Usually when fermenting, the quantity is better than quality. Third beer tastes better than the first one. There is time to distill later on.

“Civilization begins with distillation”
-William Faulkner

Distill: After you had your ideas ferment freely it is time to distill your ideas to purest form. You have to try to control your ideas, make sense out of them. Use technology to find the essence of your idea. Distillation you can learn when you have the discipline. The less is more. If you have truly potent idea, one shot is enough and you don´t need to mix it with anything.

The best marketers are the masters of in balancing between chaos and discipline.

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Anatomy of An Insight: Cornetto Commitment Rings

cornettocommitmentrings

My wife and I seldom quarrel, but when I started to watch Orange is The New Black alone without her, there was a heated exchange. Therefore this is brilliant execution tapping into current life of target audience:

Insight: The biggest time commitment you make in this digital world is the 10+ hours you decide to invest to a TV series. You should want to share those moments with your loved ones, but quite often the temptation to be the first trumps the consideration for your other half.

I am not exactly sure whether Cornetto exactly the right brand to do this, but idea is rooted on a true insight.

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Anatomy of An Insight: +46 771 793 336

swedish number

Insight: When thinking about travelling to other country, you don´t necessarily know how the people are like. What if you could talk to the people before you are booking your holiday? In the spirit of being the first country in the world to ban censorship Sweden enables you to have unfiltered conversations with swedes, just because they can.

That number above works, but it is regarded as international call so you might need to pay for the privilege. Thus far there have been already over 150k calls and callers from 182 countries. As a Finn, cannot say anything else but Swedes beat us again (luckily we were better in ice hockey this year).

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Advertising Can Make Even Baby Carrots Desirable

babycarrots

The fact is that majority of brands and products are boring. Being boring is a challenge, because your brand will not be noticed. You are not competing against the other products and brands in category, you are competing of mindspace of your consumer which is increasingly filled with Netflix, Snapchat and other way more interesting things than you brand.

The main role for advertising is to sell more products and how you do it is by making your product more interesting, desirable and thus noticed. Rational arguments don´t really work. Every smoker knows that he would need to quit. You know that you should hit the gym. And you know that carrots are healthy, but you still choose to munch on chips because they just taste good.

This campaign from few years back is a brilliant example of the true power of advertising. You have a great product, but it has an image problem. You fix it by going totally overboard. You appeal to heart. You beg, borrow and steal from other categories. You are bold. You make that product differentiated and interesting. If your category is boring, you reframe your whole category. You do what you are supposed to do:

If advertising industry has identity problem right now, it is because we have lost our focus on making the brands we work with desirable. We have gone too deep in rabbit hole of championing social causes or doing unnecessary technological innovations, that we have forgotten why we exist in the first place.

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Vodka From A Village and The Secret of a Great Brand Film

finlandialessordinary

I hate majority of brand films. They just revisit same old clichés and not even the employees get kick out of them:

The false deduction would be to conclude that if majority is shit, everything is. Brand film, when done well, can be truly uplifting experience. It can put your brand´s stake in the ground and convey your attitude in a manner that resonates both to your consumers and your employees.

This rebranding of Koskenkorva is a great example of a good brand film. The product consists of water and barley. It is coming from a small village. It is Finnish and we don´t brag or boast. The understated tone actually oozes confidence and in a minute shows what the brand stands for. Brilliant stuff from Bob The Robot:

Finnish vodka brands seem to have learnt something during the years, because the following example is from Finlandia vodka. Whereas Koskenkorva is the rural and rustic everyday drink, Finlandia has always been a little bit upscale. Upscale in Finland meaning still that you have weird attitude that other markets don´t understand. This is a brand film that is built around the desired attitude of the brand. After seeing this you are hyped up to grab a bottle of vodka and try your new deadlift record (this is done by W+K London):

Great brand film:

1) Tells something interesting about brand.
2) Is something that only your brand can do
3) Makes you feel something
4) Looks good (there is no such thing as lo-fi brand film)

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Anatomy of An Insight: Kraft Macaroni & Cheese It´s Changed But It Hasn´t

macandcheese

“This is like the largest blind tasting ever”

Insight: Brand is all about perception. When you are changing the recipe of an iconic food item, you have to be careful. Expectations play important role on what we taste and how we experience it. Taste is shaped by our past experiences, our current mood, our expectations, and any number of incidental details.

“What we think is going into our mouth actually changes what we taste, down to the level of the taste buds themselves.”

Michael Norton, assistant professor of business administration in the marketing department of the Harvard Business School

So instead of doing big bang like New Coke and failing miserably, Mac & Cheese starts sneakily by just testing it out. Not surprisingly people didn´t notice any difference and generally having no artificial ingredients should be good thing. macandcheese2

I also recommend watching this longer story about the project and to visit the website.

Powerful, simple, big and real (not scam or some crappy innovation) campaigns are not that common nowadays, so this definitely deserves some praise.

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